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Questions and Answers
What is the primary function of tourist accommodation companies?
What is the primary function of tourist accommodation companies?
Which of the following is NOT a basic principle underlying the classification of tourist accommodations?
Which of the following is NOT a basic principle underlying the classification of tourist accommodations?
According to the Decree 75/2020, which of the following establishments does NOT fall under the category of hotels?
According to the Decree 75/2020, which of the following establishments does NOT fall under the category of hotels?
What type of accommodation is classified under 'Rural Housing (TR)'?
What type of accommodation is classified under 'Rural Housing (TR)'?
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What is the lowest classification category for campsite establishments?
What is the lowest classification category for campsite establishments?
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How are Tourist Apartments categorized?
How are Tourist Apartments categorized?
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Which statement correctly describes the competencies in tourism regulations in Spain?
Which statement correctly describes the competencies in tourism regulations in Spain?
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What distinguishes 'Rural Housing (TR)' from Farmhouses?
What distinguishes 'Rural Housing (TR)' from Farmhouses?
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What is a common disadvantage of independent hotels?
What is a common disadvantage of independent hotels?
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Which classification of hotels primarily focuses on location?
Which classification of hotels primarily focuses on location?
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What is a key advantage of hotel chains?
What is a key advantage of hotel chains?
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Which hotel management model includes a standard operating procedure imposed by a corporate entity?
Which hotel management model includes a standard operating procedure imposed by a corporate entity?
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What does the model ‘own management, owned hotel’ imply?
What does the model ‘own management, owned hotel’ imply?
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Which of the following is a characteristic of hotel chains?
Which of the following is a characteristic of hotel chains?
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What disadvantage does a centralized reservations affiliation pose for independent hotels?
What disadvantage does a centralized reservations affiliation pose for independent hotels?
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What might be a priority for hotel owners before joining an external hotel company?
What might be a priority for hotel owners before joining an external hotel company?
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In which hotel management model does the owner retain operational independence while collaborating with a central reservations office?
In which hotel management model does the owner retain operational independence while collaborating with a central reservations office?
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Which of the following is a disadvantage of hotel chains?
Which of the following is a disadvantage of hotel chains?
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What is one of the financial challenges faced by independently managed hotels?
What is one of the financial challenges faced by independently managed hotels?
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Which hotel classification by market segmentation is focused on catering to tourists and vacationers?
Which hotel classification by market segmentation is focused on catering to tourists and vacationers?
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Which hotel management model includes taking over parallel enterprises?
Which hotel management model includes taking over parallel enterprises?
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What does the term 'scale economies' refer to in the context of hotel chains?
What does the term 'scale economies' refer to in the context of hotel chains?
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What is one of the main advantages for hotel owners in a lease agreement with an operator?
What is one of the main advantages for hotel owners in a lease agreement with an operator?
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Which of the following is a disadvantage for owners in a franchise agreement?
Which of the following is a disadvantage for owners in a franchise agreement?
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What is a key disadvantage for hotels under a management contract with a hotel chain?
What is a key disadvantage for hotels under a management contract with a hotel chain?
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Which aspect represents a disadvantage of voluntary chain affiliation for hotel owners?
Which aspect represents a disadvantage of voluntary chain affiliation for hotel owners?
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What is a primary advantage for franchisors in a franchise agreement?
What is a primary advantage for franchisors in a franchise agreement?
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In a joint venture arrangement, what is a common downside?
In a joint venture arrangement, what is a common downside?
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What does the owner of a hotel face as a disadvantage when entering a lease agreement?
What does the owner of a hotel face as a disadvantage when entering a lease agreement?
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Which of the following accurately describes a disadvantage for hotel chains in a management contract?
Which of the following accurately describes a disadvantage for hotel chains in a management contract?
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What is the primary responsibility of a management company under a lease agreement?
What is the primary responsibility of a management company under a lease agreement?
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What is a key economic risk for owners in a franchise agreement?
What is a key economic risk for owners in a franchise agreement?
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What is the main benefit of voluntary chain affiliation for hotel owners?
What is the main benefit of voluntary chain affiliation for hotel owners?
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Which option describes a primary challenge faced by operators in lease agreements?
Which option describes a primary challenge faced by operators in lease agreements?
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In a sale and lease back scenario, what is exchanged for rental commitments?
In a sale and lease back scenario, what is exchanged for rental commitments?
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Study Notes
Tourist Accommodation Classification
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Tourist accommodation companies provide temporary lodging, possibly with extra services.
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No uniform classification exists across the EU or internationally.
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Spanish regions have autonomy in developing their own regulations.
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Two basic principles for classification exist.
- A standard classification based on minimum requirements.
- A quality-based classification assessing facilities and services.
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Decree 75/2020 of August 6, 2020, is the current regulation for tourist accommodation establishments in Spain.
Types of Tourist Establishments
- Hotels (H): Includes Hotel Apartments (HA).
- Hostals or Pensions (P): A type of lodging.
- Tourist Apartments (AT): Apartments rented for temporary stays.
- Campingsites (C): Ranked into categories (luxury, first, second, third).
- Rural Housing (TR): Includes farmhouses, rural homes, shared village houses, and independent village houses.
Tourist Apartment Classification
- Tourist apartments are categorized according to voluntary national standards, typically through Decree 164/2010.
Hotel Industry General Features
- High initial investment is needed.
- Business expansion takes time.
- Continuous 24-hour operation is necessary.
- Service demand forecasting is challenging.
Hotel Classification by Location and Market Segmentation
- Location: Includes sun & beach, urban, roadside, and rural hotels.
- Market: Leisure, conferences, low cost, boutique, etc.
Hotel Classification by Management System
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Independent Hotels: Individually managed establishments.
- Advantages: Autonomy, flexibility in quality/service standards, high worker adaptability.
- Disadvantages: Increased competition, weak negotiation power, higher operational costs.
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Hotel Chains: Unified management across multiple establishments.
- Advantages: Brand recognition, reduced marketing costs, improved customer knowledge, scalable customer base via greater quantity.
- Disadvantages: Standardized services, limited local customization, reduced individual establishment autonomy.
Hotel Chain Advantages/Disadvantages
- Owner Advantages:
- Owner Disadvantages:
- Chain Advantages:
- Chain Disadvantages:
Hotel Management Models
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Own Management (Owned Hotel): Owner manages the hotel.
- Advantages: Flexibility, full control.
- Disadvantages: Limited market reach, concentrated risk, funding limits.
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Own Management with Central Reservations: Partners with a reservations company.
- Advantages: Enhanced reach, commercial support.
- Disadvantages: Potential loss of control.
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Own Management with Voluntary Chain: Affiliation with a larger chain for access to a wider network, central reservations, greater brand recognition (i.e., prestige), reduced advertising costs, and economies of scale.
- **Advantages:** National/international reach, access to central reservations. - **Disadvantages:** Potential for higher risk; affiliation fee; minimum quality control. -
Own Management with Franchise Agreement: Owns the hotel and uses a brand name (i.e. Hilton, or another chain).
- **Advantages:** National/international reach, access to central reservations, brand identity, assistance on opening and management. - **Disadvantages:** Economic risk in case of loss; franchise fees; costs for selling rooms; potential negative brand image. -
Lease Agreement with an Operator: Letting a company manage the hotel.
- **Advantages:** Access to expertise, potential high profit, easier funding. - **Disadvantages:** Loss of control; minimal profit for owner unless rental is high enough; minimum profitability to owner or risk of default; difficulty with lease terminations. -
Management Contract: Management company handles daily operations.
- **Advantages:** Expertise, access to expertise, potential improved profit, funding eased, easier operation. - **Disadvantages:** Difficulty leaving; loss of control; higher up-front costs. -
Sale and Lease Back: Transferring ownership to an investor for a period of time.
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Joint Venture: Partnership with another company toward a shared project.
- Advantages: Access to capital (money from investor), decreased effort (lower investment).
- Disadvantages: Sharing of profits/business decisions.
Initial Start-Up Hotel Needs
- Financial resources (investment capital).
- Human resources (staff).
External Hotel Company Considerations
- Essential needs.
- Major services.
- Pre-affiliation considerations: key questions for owners.
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Description
Explore the intricacies of tourist accommodation classifications, focusing on the different types of lodging available in Spain. Understand the principles that govern classification, such as the standard and quality-based assessments. Additionally, learn about the current regulations and specific establishment types that cater to tourists.
