Overview of the Lodging Industry PDF

Overview of the Lodging Industry Learning objectives: 1.Define the fundamentals in hospitality. 2.Differentiate lodging, accommodation, and hotel. 3.Explain the word “hotel” used as a common term for lodging and accommodation. 4.Describe the characteristics of the lodging industry. 5.Enumerate the...

Overview of the Lodging Industry Learning objectives: 1.Define the fundamentals in hospitality. 2.Differentiate lodging, accommodation, and hotel. 3.Explain the word “hotel” used as a common term for lodging and accommodation. 4.Describe the characteristics of the lodging industry. 5.Enumerate the skills needed and benefits of working in the lodging industry. Basic Concepts in the Lodging Industry  The hospitality industry is composed of different activities and services, such as lodging, restaurants, food and beverage services, spas, convention centers, and the like.  The lodging sector consists of hotels, motels, resorts, apartments, condominium hotels, bed- and-breakfast, inns, lodges, and the like.  Lodging provides accommodation that includes different standards of service, food, and rooms according to their categories and types.  The lodging industry exists to provide services that can entice the society to travel.  Working in this industry conveys various benefits, from building individual’s confidence, privileges to experience the services offered, to building networks and many more.  Defining Hospitality  The definition of the word fundamental (Merriam-Webster Dictionary) is “serving as a basis supporting existence or determining essential structure of function.”  Lodging, also known accommodation, is “a place to sleep and related amenities for temporary use of a tourist or traveler.” Hotel is a place or building that provide accommodations, meals, and other amenities for a fee.  A fundamental of lodging operations involves the interplay of basic structure, knowledge and information, and management skills.  With the continuous increase of tourist arrival in the Philippines, investors find the opportunity of engaging in the lodging industry due to high demand, especially to the booming tourist destinations.  Hospitality management students must be equipped with the essential information needed in the operations of a hotel.  Tourism and hospitality industry components are lodging industry, food and beverage industry, recreation, and travel industry.  The word hospitality is derived from the Latin word hospitare, meaning “to receive as a guest.” Its task is to create shareholders’ wealth by servicing and satisfying guests. It is the act of kindness in welcoming and looking after the basic needs of guests or strangers, mainly food, beverages, and other related services. It includes businesses offering tourist services, food and beverages, and accommodation. Characteristics of the Hospitality Industry  This industry operates 24/7. Most of the time, there are no holidays because they are considered as peak days.  It relies heavily on manpower and shift works.  Guest satisfaction is very important as its goal is to satisfy customers. Delivery of great services is crucial in the industry’s success.  The hospitality industry produce “guest satisfaction” – an intangible.  Leisure and relaxation  Products are “perishable”  The Nature of Hotel Work  Wages and Salaries – The hospitality industry requires intensive labor and manpower as they are crucial in delivering quality service.  Work Environment – In comparison with other industries, the atmosphere might be rather excellent. First-class and luxury hotels are frequently seen as excellent locations to work, although some older, badly kept hotels may be regarded as less so.  Hours and Days of Work – Most establishments related to hotel industry are operating 24 hours a day and seven days a week, including holidays and special events. That is why it is very normal for these establishments to have rotational shifts when it comes to employees.  Travel Opportunities – Some professionals or employees will have travel opportunities as they could be relocated based on the need of several different jobs.  People-Oriented Profession – The hospitality sector caters to the needs of travelers; the bulk of those who work in it are constantly in contact with guests and customers. People in this field need to have good social skills and be able to interact well with others.  Benefits of Working in the Lodging Industry  Working with great people  Acquiring global skills  Day-to-day variety  Social interaction  Staff perk  Creative opportunities  Brilliant career prospects  Skills needed in the hospitality industry Top 10 Skills Needed in the Industry  Cultural Awareness  Communication Skills  Multitasking Skills  Work Ethics  Language Skills  Professionalism  Teamwork Skills  Problem-Solving Skills  Attention to Details HOTEL CLASSIFICATION S Hotel Classifications:  Hotel sizes  Hotel location  Product types  Ratings Classification according to hotel sizes:  Small – has 50 to 150 sleeping rooms  Medium – has 151 to 400 sleeping rooms  Large – has 401 to 1,500 sleeping rooms  Mega – has 1,501 and over sleeping rooms Hotel classification by location types: Hotels are classified by the physical positioning in relation to the customers in the area and to their tangible locale.  Downtown  Resort  Airport  Suburban  Classification by Location Type Downtown hotel  Hotels that have large clusters of corporate structures or office parks surrounding them regardless where in the city they are located.  Traditionally, downtown hotels are located in the center of a city’s business district, “heart” of the corporate structure in any given city. e.g. Makati Shangri-la, EDSA Shangri- la,Shangri-la BGCc, Bellevue Manila, Dusit Thani, Peninsula Manila, Manila Hotel, Holiday Inn Galleria, etc.  Classification by Location Type Downtown hotel  Convention Hotel is used when a downtown hotel is strategically located near a convention center.  Hotels that are both located near the city’s convention center may be considered a convention or a downtown hotel, based on whether they cater to business related to the convention or not. e.g. Sofitel Philippine Plaza near the PICC and SMX  Classification by Location Type Resort Hotel  A hotel can be considered resort hotel if it is located near some sort of a special attraction such as an ocean, golf course, ski slopes, amusement park, historical park, that attracts guests for a reason other than the hotel itself. e.g. Manila Hotel-near Intramuros golf Banawe hotel-Ifugao rice terraces  Hotels that create their own signature attraction such as spas, private golf, tennis facilities, oceanarium, etc, can also be considered a resort hotel. e.g. Atlantis Hotel-Dubai Disneyland Hotel-Hongkong  Classification by Location Type Resort Hotel  Resort hotels can be located anywhere.  There are few hotels that use the term “resort” in their name to, in effect, trick the customer into believing that they offer some sort of special attraction.  Resorts built near special attractions that are not their own may be at the mercy of the attraction’s seasonality. Seasonality – is the term used to define the time of the year when a special attraction is open or at its peak level.  Classification by Location Type Resort Hotel  Can be located anywhere, and can often boast of natural attractions that provide perceived value to the receptive customers.  A receptive customer is one who is more likely to be interested in products or services than the general population due to personal interest or need.  They may feel that they receive a special in return for their money.  Classification by Location Type Airport Hotel  A hotel that is strategically located near an international airport in major gateway cities. e.g. Resorts World Manila Marriott Hotel Manila Gateway cities - are cities traditionally those located in an area near that makes them the first practical stop for an international flight coming into a country.  Classification by Location Type Suburban Hotel  Hotels that are generally considered to be those that do not fit into the other three types.  These hotels are not located in the downtown area or near airports.  They have no special or signature attractions to qualify them as resorts.  Suburban hotels often thrives in environments where the compression of demand in the city lessens the importance of hotel’s location type. Hotel classification by product type: Hotel product types are defined by the service levels they provide as well as their target market.  Classification by Product Type Service level  Is measured by the amount of actual and perceived consideration a guest can reasonably expect to receive.  Consumers of all products experience different levels of service.  Generally, you pay more for the product you feel gives you more in return. However, it is not necessarily tied to increased cost.  In the hotel industry, the differences in service levels is often (but not always) tied to incremental increase in cost.  Limited service, full-service and mid-market are the classifications of services offered by different hotels.  Classification by Product Type Full-service hotels  Hotels that provide their guests with services, amenities and facilities that they want or need to complete a total hotel experience.  To varying degrees, these may include, but not limited to:  Restaurants, lounges and bars  Room service  Meeting and function spaces  Business center  Health club and other recreation facilities  Bellstaff/doorstaff  Gift shop/souvenir shop  Suites, upgraded rooms and executive business floors  Concierge services  In-room amenities - minibar, internet access, in-room movies, etc.  Shuttle services  Classification by Product Type Limited service  Hotels that do not offer the services available in full-service hotels.  The most common difference is the absence of the food and beverage outlets.  They offer a quality room for a fair price.  Classification by Product Type Mid-market service  A hotel that offer services with a combination of both the limited and full-service hotel classification because these hotels can vary from one place to another.  Classification by Product Type Economy Budget Mid-market Upscale Luxury Figure 1 – Cost versus product relationship  Classification by Product Type Cost versus product relationship  The price versus service relationship is not always universal.  In most markets, increased in service level will be tied to an increased price (room rate).  In some cases, differences will occur from location to location.  The price versus service comparison must be made within the same market.  Classification by Product Type Target market  Is a market segment/s or a combination the hotel wants to penetrate.  The target market can be inherently tied to a product type or specifically designated by a marketer as a new focus.  In modern hotels, there are vastly different target markets available, which contribute to each hotel’s available business mix.  A target market is comprised of those consumers wanting a different type of hotel room.  Target markets may be standard, extended stay, all suite markets or hybrid.  Classification by Product Type Standard markets  Comprised of guests who are looking for a traditional hotel room.  Classification by Product Type Extended stay hotels  Hotels that provide their guests with services, amenities and facilities that they want or need to facilitate a long-term stay in one location.  The room rate at an extended stay hotel is based on the length of the guest’s stay.  Most extended stay hotels reduce the room rate in relation to longer guest stays.  Extended stay hotels may provide stove and microwave, refrigerator, dishes and kitchenware, laundry services, recreation facilities and the like  Classification by Product Type All suite hotels  Is targeted to the consumer looking for a hotel experience rivaling the suites in upscale and luxury hotels.  The appeal of a suite can be attractive to more consumers.  The all suites can have: two or more rooms per suite, varying service level, limited on- site food and beverage facilities, complimentary receptions and breakfast for all guests. e.g. Oakwood Premier, Discovery Suites, Linden Suites, Millenia Suites  Classification by Product Type Hybrid markets  Referred to as combined target market.  Hybrid market classifications allow the marketer to determine specific market segments within and among the main three market segments.  Hybrid markets are generally more defined and narrower in scope because they focus on a smaller, more specific mix of customers.  Classification by Product Type Economy, Budget Mid-Market, All Suite Upscale, Luxury Long-Term Stay Economy Long Term Stay Economy All Suite Budget Long Term Stay Budget All Suite Mid-Market Long Term Stay Mid-Market All Suite Upscale Long Term Stay Upscale All Suite Luxury Long Term Stay Luxury All Suite Figure 2 - Hybrid markets  Classification by Rating Independent hotel ratings  In many foreign countries, the government plays a role in the service classification of their hotels.  A star system is primarily used to denote the level of quality and service  In the U.S., the government does not play any role in classifying hotels. This is left to independent organizations such as magazines, associations, and others special interest group issue ratings  In the Philippines, the Department of Tourism is tasked to assign ratings to all hotels based on facilities, market segments, location, etc. Assignment: 1. List down ten (10) hotels in Metro Manila. 2. Classify them according to four hotel classifications, namely: a. Hotel size b. Location 3. Product type 4. Rating 3. Computerized, with front page. Hotel pictures will be appreciated.