Podcast
Questions and Answers
What is one of the key functions of a franchisor?
What is one of the key functions of a franchisor?
What distinguishes management contract systems for hotel operators from ownership?
What distinguishes management contract systems for hotel operators from ownership?
What is the primary purpose of "marketing" as it applies to hotels?
What is the primary purpose of "marketing" as it applies to hotels?
What is market segmentation in the context of hotel marketing?
What is market segmentation in the context of hotel marketing?
Signup and view all the answers
What is a characteristic of a franchising model compared to a management contract?
What is a characteristic of a franchising model compared to a management contract?
Signup and view all the answers
Which of the following is NOT a common fee structure for management companies?
Which of the following is NOT a common fee structure for management companies?
Signup and view all the answers
Which of the following groups is typically the most important source of revenue for hotels?
Which of the following groups is typically the most important source of revenue for hotels?
Signup and view all the answers
What is a key advantage of a chain hotel system (like Hilton, Marriott, etc.) for a franchisee?
What is a key advantage of a chain hotel system (like Hilton, Marriott, etc.) for a franchisee?
Signup and view all the answers
What historical event led to a decrease in travel?
What historical event led to a decrease in travel?
Signup and view all the answers
Why did hotel classifications become more complex?
Why did hotel classifications become more complex?
Signup and view all the answers
What is the main purpose of a hotel classification system?
What is the main purpose of a hotel classification system?
Signup and view all the answers
What is the Occupancy Rate of a hotel?
What is the Occupancy Rate of a hotel?
Signup and view all the answers
What is a key difference between a hotel and a motel?
What is a key difference between a hotel and a motel?
Signup and view all the answers
Which of these is NOT a common hotel classification?
Which of these is NOT a common hotel classification?
Signup and view all the answers
What type of hotel provides meeting facilities for large groups?
What type of hotel provides meeting facilities for large groups?
Signup and view all the answers
What type of lodging offers relaxation and recreation?
What type of lodging offers relaxation and recreation?
Signup and view all the answers
What is one benefit of operating a franchise system?
What is one benefit of operating a franchise system?
Signup and view all the answers
Which of the following is a common disadvantage of chain ownership?
Which of the following is a common disadvantage of chain ownership?
Signup and view all the answers
What is a major advantage of company-owned and operated systems?
What is a major advantage of company-owned and operated systems?
Signup and view all the answers
In a franchise system, who provides the right to use the brand's name and system?
In a franchise system, who provides the right to use the brand's name and system?
Signup and view all the answers
What challenge do hotel chains face regarding brand loyalty?
What challenge do hotel chains face regarding brand loyalty?
Signup and view all the answers
What percentage of all hotel stays is accounted for by personal and leisure travel?
What percentage of all hotel stays is accounted for by personal and leisure travel?
Signup and view all the answers
What is a potential disadvantage of market segmentation?
What is a potential disadvantage of market segmentation?
Signup and view all the answers
Which feature is NOT typically highlighted by the hotel marketing department in their research?
Which feature is NOT typically highlighted by the hotel marketing department in their research?
Signup and view all the answers
What is the primary purpose of conducting market segmentation?
What is the primary purpose of conducting market segmentation?
Signup and view all the answers
What do successful marketing strategies for hotels rely heavily on?
What do successful marketing strategies for hotels rely heavily on?
Signup and view all the answers
What is the time frame typically associated with a short-term marketing plan?
What is the time frame typically associated with a short-term marketing plan?
Signup and view all the answers
Which of these is NOT mentioned as a specific need of potential guests?
Which of these is NOT mentioned as a specific need of potential guests?
Signup and view all the answers
What advantage does segmentation offer to hotel companies?
What advantage does segmentation offer to hotel companies?
Signup and view all the answers
What type of hotel is characterized by a lavishly decorated public area and the highest levels of customer service?
What type of hotel is characterized by a lavishly decorated public area and the highest levels of customer service?
Signup and view all the answers
Which property type typically focuses on offering basic bed and bath facilities?
Which property type typically focuses on offering basic bed and bath facilities?
Signup and view all the answers
What distinguishes the hospitality product from goods-producing products?
What distinguishes the hospitality product from goods-producing products?
Signup and view all the answers
Which of the following is a method used by successful marketers in the lodging industry?
Which of the following is a method used by successful marketers in the lodging industry?
Signup and view all the answers
What is the defining characteristic of Upscale Properties in the market price levels?
What is the defining characteristic of Upscale Properties in the market price levels?
Signup and view all the answers
Which hotel type generally offers clean, well-decorated accommodations with facilities for meetings and dining?
Which hotel type generally offers clean, well-decorated accommodations with facilities for meetings and dining?
Signup and view all the answers
Which of the following best explains 'packaging' in the hospitality industry?
Which of the following best explains 'packaging' in the hospitality industry?
Signup and view all the answers
What is primarily emphasized in product marketing within the hotel industry?
What is primarily emphasized in product marketing within the hotel industry?
Signup and view all the answers
What is the primary focus of Budget Properties?
What is the primary focus of Budget Properties?
Signup and view all the answers
Capsule hotels are primarily designed for which type of travelers?
Capsule hotels are primarily designed for which type of travelers?
Signup and view all the answers
Which element is NOT a part of the eight Ps of marketing?
Which element is NOT a part of the eight Ps of marketing?
Signup and view all the answers
What does 'programming' refer to in the context of hospitality marketing?
What does 'programming' refer to in the context of hospitality marketing?
Signup and view all the answers
What distinguishes Full-Service Properties from Luxury Properties?
What distinguishes Full-Service Properties from Luxury Properties?
Signup and view all the answers
What characteristics define a property as a Midprice level accommodation?
What characteristics define a property as a Midprice level accommodation?
Signup and view all the answers
The success of place marketing in hospitality depends on what primary factor?
The success of place marketing in hospitality depends on what primary factor?
Signup and view all the answers
Which marketing element prioritizes the image or ambiance desired by customers?
Which marketing element prioritizes the image or ambiance desired by customers?
Signup and view all the answers
Study Notes
The Lodging Industry - Chapter 3
- The lodging industry is constantly evolving to accommodate guest needs.
- Political stability, technological advancements in transportation, and changing social norms influence the industry.
- The lodging industry's success depends on guests' ability to travel to lodgings, with changing transportation methods having a direct impact on the industry.
- Stagecoaches and coaching inns were early forms of lodging, followed by 'Public Houses' adapting existing homes for overnight guests.
- The invention of railroads brought changes to lodging, with inns, taverns, and restaurants developing near railway stations.
- The development of commercial jets and easier air travel led to the building of new resorts in accessible locations.
- The 20th century's economic health brought about the "Golden Age of Hotels," with widespread lodging development.
- The Great Depression led to a sharp decrease in travel and lodging demand.
- Economic booms of the 1980s fueled extensive hotel development, incentivizing investors and raising demand expectations.
- Occupancy Rate is a key metric for lodging industry health calculated as the percentage of rooms occupied during a specific time (night/week/year), divided by the total available rooms during that time.
Agenda - Template
- Identify historical influences affecting the hotel industry.
- Explain various lodging property classification methods.
- Discuss the advantages and disadvantages of independent and chain companies.
- Identify the 8 Ps (Product, Price, Place, Promotion, People, Process, Physical evidence, and Positioning) of hospitality marketing.
- Compare company-owned, franchised, licensed, and management contract lodging chain ownership.
The Evolution of Lodging Facilities
- Hotels adapt to guest needs over time.
- Major factors influencing the lodging industry include political stability, technological advances, and evolving social trends.
- Changing transportation methods significantly impact travel and thus the lodging sector.
The Influence of Transportation Technology
- Stagecoach routes led to the development of coaching inns.
- "Public Houses" were private homes offering lodging and meals.
- The invention of the railroad changed lodge choices, encouraging new taverns and inns near stations.
- Hoteliers managed lodging establishments, including those near railway stations.
- Commercial jets influenced travel patterns, encouraging resorts to be built in more accessible locations.
Classification of Hotels and Motels
- Hotels and motels needed classification to appeal to various guest types (business, conventions, leisure).
- Descriptive classifications helped guests locate suitable lodgings based on needs (economy, business, extended stay, upscale).
- Lodging classification systems became more complex, considering facilities, amenities, price, guest type, and hotel type.
Descriptive Labels
- Hotels vary greatly in style and service; commonly including beds, baths, telephones, and televisions.
- Motels are less expensive compared to downtown hotels often featuring lower rates and basic facilities.
- All-suite hotels focus on suites offering multiple living areas, including kitchens.
- Convention hotels provide meeting and banquet facilities, supporting large groups.
- Resorts often provide recreation and entertainment facilities, aiming at relaxed leisure travel.
- Hostels, bed-and-breakfasts, private homes, lodges, and other lodging types are all considered, catering to various guest needs.
Types of Lodging Ownership
- Chain: Includes company-owned/operated, franchised/licensed, and management contract properties.
- Independent: Owned and operated individually, without affiliation with any hotel chain.
Independent Ownership
- Advantages include complete control over operations, strong community ties, improved knowledge of the community support and discounts from suppliers.
- Disadvantages include confronting financial challenges, limited advertising potential, and higher risk of system failure/incorrect implementation.
Chain Ownership
- Advantages of chain ownership include strong brand recognition, access to large reservation systems, increased capital and bulk purchasing power, and using company expertise.
- Disadvantages include needing to build brand loyalty, handling strong competition both within and outside the chain.
Company-Owned and Operated Systems
- These properties are owned and managed by the company with a consistent brand identity.
- Chain properties may maintain independence by not being part of a management contract or franchise agreement.
Franchise Systems
- Franchisors offer standard operating systems, training programs and centralized reservation systems to franchisees.
- Franchise agreements allow franchisees to utilize a brand (name) and operating systems.
Management Contract Systems
- An agreement allows an outside company to manage the property for a fee.
- Fees are frequently calculated based on gross operating revenue. Incentive fees might be paid on the gross profit.
Marketing
- Marketing involves planning and executing strategies for a hotel's target market to satisfy individual and organizational goals through effective strategies.
- Hotels often utilize market segmentation to identify specific guest types (business, leisure) with tailored service offerings that cater to their needs.
- The use of well-defined marketing plans in the lodging industry has become crucial for success due to growing complexity, fierce competition, and evolving needs/expectations of guests.
Market Segmentation
- Market segmentation allows more effective marketing strategies tailored to specific guest demographics.
- This can include targeting specific needs of business travelers (well-lit workspaces, internet access, etc.), as well as leisure travelers (recreation and entertainment opportunities).
- This approach can improve efficiency in the management of costs.
The Marketing Plan
- Marketing plans involve strategies for short-term (less than a year) and long-term (five years or more) marketing objectives.
- These plans should detail a budget, time schedules, market analysis, and the intended image of the property.
- Hospitality marketing differs from product-based marketing as service is a key selling point for lodging.
- The 8 P's can be used as a guide for hospitality services marketing plan development.
Elements of Marketing Method
- Product aspects encompass service, ambiance, facilities, and amenities.
- Packaging refers to bundled services (e.g., weekend gateway or honey-moon packages).
- Programming often includes customized offerings for groups with shared interests (e.g., educational programs or event-based initiatives.)
- Place marketing emphasizes desirable locations, and partnerships often form between industries or companies.
- Pricing strategies often consider location, amenities, and amenities.
- Promotional activities typically encompass special events, discounts, and advertising.
The Evolution Process Continues
- Positioning in the market is an evolving process.
- Maintaining hotel relevance in a complex industry requires ongoing evaluation and adjustment of strategies to address industry changes such as evolving consumer needs and market dynamics.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
Explore the evolution of the lodging industry as it adapts to changing guest needs and external influences. This chapter delves into the historical developments from stagecoaches to modern resorts while highlighting the impact of political stability and transportation innovations. Discover how significant economic events shaped lodging trends over the decades.
