Fundamentals in Lodging Operations PDF

Fundamentals in Lodging Operations Week 1 & 2 Accommodations or Lodging Sector and Hospitality Services  Hospitality is the term generally Hospitality is the cordial and generous associated with hotels and restaurants. reception and entertainment of guests...

Fundamentals in Lodging Operations Week 1 & 2 Accommodations or Lodging Sector and Hospitality Services  Hospitality is the term generally Hospitality is the cordial and generous associated with hotels and restaurants. reception and entertainment of guests or strangers, either socially or Hospitality is derived from HOSPICE commercially. meaning “house of rest for travelers”. The Hospitality Industry is comprised of those businesses which practice the act of being hospitable; those businesses which are characterized by generosity and friendliness to guests.  Accommodation industry A wide array of lodging facilities from luxurious resorts to modest bed and breakfast establishments. Food and beverage industry Food service is offered at a variety of facilities including transportation terminals, airplanes, trains, ships, and attractions.  Components of Hospitality Industry 1. Lodging Operations -such as hotels, resorts, motels etc. 2. Transportation Services -such as taxi, train, cruise ships, etc. 3. Food and Beverage Operations -such as restaurants, bars, etc. 4. Retail Stores -such as souvenir shops, etc. 5. Activities -such as recreations, festivals, etc. Historical Developments From antiquity to the Middle Ages The history of hotels is intimately connected to that of civilizations. The Greeks developed thermal baths in villages designed for rest and recuperation Later, the Romans built mansions to provide accommodation for travelers on government business. Later, caravanserais appeared, providing a resting place for caravans along Middle Eastern routes In the Middle Ages, monasteries and abbeys were the first establishments to offer refuge to travelers Inns gradually appeared in most of Europe.  Historical Developments The start of the hotel industry In France, at the beginning of the 15. century, the law required that th hotels keep a register. Around 15th. Century thermal spas were developed at Carlsbad and Marienbad in England During 15th century, more than 600 inns were registered in England An embryonic hotel industry began to develop in Europe At the end of the 1600s, the first stage coaches following a regular timetable started operating in England The industrial revolution, which started in the 1760s, facilitated the construction of hotels everywhere, in mainland Europe, in England and in America.  Historical Developments First hotels and restaurants - In 1774, the first hotel opened in London - In 1794 the “City Hotel” opened in New York City - The term restaurant first used in Paris Hotel innovations -At the beginning of the 1800s, the Royal Hotel was built in London. -Holiday resorts began to flourish along the French and Italian rivieras.  In Japan, Ryokan guest houses sprang up. The oldest hotel in the world is Hoshi Ryokan (Japan), 1,292 years in operation.  Historical Developments Hotel innovations -In India, the government provide bungalows provided reliable accommodation for travelers -First hotel equipped with modern amenities Tremont House built in Boston in 1812. Go to fullsize image  Historical Developments The Holt Hotel in N.Y. was the first to provide a lift for passengers’ luggage. In 1822, in Venice, Dal Niel transformed an old palace into a hotel In 1834, L'Hôtel des Bergues was built on the shore of the Lake of Geneva. The New York Hotel was the first to be equipped with private bathrooms The inauguration of the Le Grand Hôtel Paris took place on 5 May 1862 In 1870, the Palmer House Hotel in Chicago was the grandest of all hotels In 1880, the Sagamore Hotel on Lake George in the state of New York was the very first to provide electricity in all its rooms.  Historical Developments The first school for hoteliers was founded in, Switzerland in 1890. The Netherland Hotel in New York City then became the first to provide all its guests with their own telephone. The first ski resorts in Switzerland welcomed tourists (often English ones) to some very comfortable establishments. 1908. The Buffalo Statler, the first business hotel in America began its operations 1931, the Waldorf Astoria was opened in New York City In the sixties, new tourist resorts flourished around the Mediterranean, from Spain to Greece and from the Balearics to Yugoslavia. 1970 saw the beginning of the construction of hotels for business people The third boom in the hotel industry began in 1980’s  Today, a surge of hotels flooded American and the rest of the world with prominent names such as Marriot, Hilton. The largest hotel is the First World Hotel located in Genting Highlands, Malaysia. It has 6,118 rooms.  Innovators & Leaders Fred Harvey (1835-1901) in1875 opened two railroad eating houses in Santa Fe Eating houses evolved into hotels in 1910’s and 1920’s Harvey House Hotels Service differentiation with “female servers”  Innovators & Leaders Ellsworth M. Statler (1863-1928) – Buffalo Statler Hotel Father of American Hotel Industry “a room and a bath for a dollar and a half ” “put telephones and radios in every guest room ” “the guest is always right ” In 1954, the chain was purchased by Conrad Hilton for $111,000,000, the largest transaction in the history of the hotel industry  E.M STATLER HOTEL’S  Innovators & Leaders Conrad Hilton (1887-1979) At first, wanted to buy a bank in Cisco, TX Bought a 40 room Mobley Hotel, 1919 He rented rooms in eight-hour shifts By the end of 1923 he had 530 hotel rooms In August 2, 1925 opened Dallas Hilton In 1948 founded Hilton Hotels International Bought the Statler Hotel chain in 1954 He formed the Hilton International Company, which came to number more than 125 hotels. CONRAD HILTON HOTEL’S  Innovators & Leaders Kemmons Wilson (1913- 2003) Founder of Holiday Inns Opened the first Holiday Inn Motel in Memphis in 1952. Holiday Inn went international in 1960. KEMMONS WILSON HOTEL’S Innovators & Leaders J.W Marriot and J.W Marriot Jr. J.W Marriot (1990-1985) founded his hotel empire in 1957 with the twin Bridges Marriott Motor Hotel in Virginia , near WASHINGTON, D.C. Marriott Hotels and Resorts death in 1985 , at w/c J.W Marriott Jr. acquired the Howard and 68 turnpike units. MARRIOTT HOTEL’S Cesar Ritz Cesar Ritz was a hotelier at the grand National Hotel in Lucerne, Switzerland. Because of his management abilities, ” the hotel became one of the most popular in Europe and Cesar Ritz became one of the most respected hoteliers in Europe. CESAR RITZ HOTEL’S Ernest Henderson and Robert Moore Started the Sheraton acquired their first hotel, the Stonehaven , in Springfield, Massachusetts. Within two years they purchase three hotel in Boston and soon expanded their holdings to include properties from Maine Florida. At the end of the first decade, Sheraton was the first hotel chain to be listed on the New York Stock Exchange. HENDERSON AND MOORE HOTEL’S  Ray Schultz In the 1980s, Ray Schultz founded the Hampton Inn hotels , a company in the Holiday Inn Corporation. Schultz’s pioneering efforts in developing a product and service for those market segments have proved a substantial contribution to the history of the hotel industry RAY SCHULTZ HOTEL’S Top 10 Parent Companies in the World (by number of rooms) with Number of Chain Management and Franchise Properties - optional Parent Company Chain Management Franchise Marriott International 1,940 4,367 Hilton Worldwide 740 4,469 Intercontinental Hotels Group 806 4,397 Wyndham Worldwide 128 8,183 Accor Company 2,222 1.779 Choice Hotels International 2 6,590 Best Western Hotels & Resorts 3,606 Hyatt 372 351 Carlson Hospitality Company 88 1,061 Jinjiang Holding 1,280 11 G6 Hospitality 462 949 Toyoko Inn 255 As of the year end 2018 by STR  Forbes Travel Guide Star Awards has released a list of hotels in the Philippines that it has awarded with a star Marco Polo Ortigas Manila Nobu Hotel Manila Nüwa Manila at City of Dreams Raffles Makati Okada Manila Shangri-La at the Fort Manila, The Peninsula Manila Sofitel Philippine Plaza Sky Tower at Solaire Resort & Conrad Manila Casino. Makati Shangri-La Fairmont Makati Hyatt Regency Manila City of The Forbes Travel Guide Star Awards calls itself “the only independent, global rating Dreams system for luxury hotels, restaurants, and spas.”  What is a Hotel? A structure providing sleeping accommodation and that usually features a dining facility and daily housekeeping service. D.O.T Definition: A building, edifice or premises or a completely independent part thereof, which is use for the regular reception, accommodation or lodging of travelers and tourists and the provision of services incidental thereto for a fee. Types of Hotels Hotels are generally classified in terms of: SIZE LOCATION PRODUCT TYPE (Service Level) PRODUCT TYPE (Target Market) STAR Rating D.O.T Classification Classification of Hotels A. According to Size: a. Small Scale (under 150 rooms) b. Medium Scale (150 to 299 rooms) c. Large Scale (300 and above) d. Mega - 1,501 and over Sleeping Rooms B. According to Target Market: a. Commercial Hotel- Located in urban areas with business travelers as the primary target market, usually upscale or midscale. b. Airport Hotel- Located near an airport with amenities for the air traveler. c. Suite Hotels- Apartment-style hotel rooms, generally offering more space and upscale amenities d. Residential Hotels e. Resort Hotels f. Bed and Breakfast Hotels g. Time-Share and Condominium h. Casino Hotels i. Conference Centers j. Convention Hotels -Located in major cities, often near a municipal convention center. k. Motor Hotel- close to a highway for automobile travelers with provisions for parking and amenities, include pool, coffee shops, etc., C. According to Levels of Service a. World-Class Service offer guest a wide range of services that may include reservation, living room and separate bedroom, kitchenette, optional public dining room and room’s services, cable television, videocassette players and recorders, specially shops, personal service, valet and laundry, swimming pool, and ground transportation, to and from the airport. b. Medium-Range Service appropriate for a guest who desires mid price level. c. Economy / Limited Service emphasizes basic room accommodations, guest amenities, and minimal public areas for business and cost- conscious travelers. (Ex. Budget Hotels and Economy Hotels) D. According to Type of Ownership and Affiliation a. Independent/Company-Owned and Operated Systems b. Chain Hotels - Management Contract - Franchise Ownership and Management Company-Owned and Operated Systems A company owned property , a hotel that is owned and operated by a chain organization allows the hotel company developer to act as independent entrepreneur. - uses its own expertise in site selection ,property developments ,marketing and advertising and operations management. Advantages –Independency –More flexibility in decision making –Control of the operating policies and procedures –Full benefits of the profits Ownership and Management Company-Owned and Operated Systems Disadvantages –Full risk –Reservation system may not be adequate –More difficult to obtain capital for growth CHAIN AFFILIATION Chain affiliations, which include hotels that purchase operational and marketing services from a corporation,. Franchise corporations offer support system, advertising, operations management, and management development. BRANDS Hotel Brands are an important part of the lodging industry , especially in consumer marketing. Branding allows a hotel company to create a concept in the mind of a consumer. This mind concept helps the consumer classify a hotel’s offerings. Ownership and Management Franchising Franchise: An arrangement between franchiser and franchisee to use the owner’s trademark, trade name or copyrights under specific conditions in providing goods or services. Advantages –The right to use the brand name –Being part of a reservation system –The right to purchase supplies via the franchiser –Professional managerial assistance Disadvantages –The franchisee does not have complete management control –The franchises must pay for the franchise rights and agree to pay monthly fees –The franchise is tied to the franchiser and how the brand name fares in the marketplace tends to affect all parts of the system. Ownership and Management Management Contract Management Contract: A contract which allows an operator to manage someone else’s property. The exact agreements vary greatly. Advantages –The investors are not required to become involved in management –The brand name generally assists in the property marketing –The management team is provided for the owners –Financing is generally easier to obtain. Disadvantages –Certain fees must be guaranteed by the owners –Owners has less impact on operations than the operator –Not flexible in international settings –Conflicts between owners and operators DOT LIST OF PRIMARY TOURISM ENTERPRISES According to Quality Ranking a. Deluxe a. First Class b. Standard c. Economy According to Quality Deluxe – a moreluxurious and spacious with amenities of superior quality, sold a much higher price than standard rooms. According to Quality Standard – a room sold at moderate rate, equipped with standard facilities and amenities like air con, toiletries, TV, bed, night table etc. According to Quality Economy – a room for an economical rate, usually short of standard facilities like air con, television and other amenities According to Location a. Center City b. Suburban c. Resort d. Airport e. Highway Star-Rating System 5-Star Rating: Exceptional 4-Star Rating: Superior 3-Star Rating: First Class 2-Star Rating: Value 1-Star Rating: Economy  Hotel’s Levels of Service offered LEVEL OF SERVICE The four commonly used market segments identifiable groups of customer s with similar needs for products and services are full service, limited service and extended stay. FULL SERVICE Is a level that provides a wide range of convenience for the guest. These services include, but are not limited to, reservations, on premises dining , banquet and meeting facilities, and recreational facilities. ALL SUITES category indicates a level of service appropriate for a guest who desires an at home atmosphere. Services include separate sleeping and living areas or working areas, kitchenette facilities, wet bar’s, and other amenities at the mid price level. LIMITED SERVICE emphasizes basic room accommodations, guest amenities, and minimal public areas. A continental breakfast and/or evening cocktail is often included in the price of the room. EXTENDED STAY is a level of service that a home-way-from-home atmosphere for business, executives, visitors,, and families who are planning an area for an. The Emergence of the International Hotel Airline Associations with Hotels Pan Am/Inter-Continental Hotels Corporation (IHC) in 1946. Pan Am acquired its first hotel in Brazil in 1949. United Airlines merged with Westin Hotels and Resorts in 1978. Japan Airlines affiliated with Nikko Hotels US hotel chains, European Hotel chains, Asian Hotel Chains. Resort Properties and Time Shares Hotels as part of attraction Where people gather for activities - Golf -Tennis - Spas - Skiing Time shares Individual owned/rented hotel room intervals May be a part of a hotel, resort, or condominium. The Casino/Destination Property Casinos with theme resorts Las Vegas : Combination of casino and destination property Sun City/South Africa: Offers casinos, golf courses, a jungle theme park, and other entertainment attractions as a part of the large resort complex. City Concept: Gaming remains central, the extended amenities serve to capture more of the tourist expenditures from all members of the family unit.  Other Hotel Types National Heritage Accommodations Converting historic buildings to hotels “Paradors: in Spain: furnished with art treasures, antiques, or reproductions. Bed and Breakfasts From luxury to economy-type accommodations B and B’s has become more highly organized , joining international reservations systems. Hospitality Sectors and Their Target Markets Hotels: 3-5 stars Business people Weekend packages Honeymoon couples Conference groups or business events Tour groups Functions Hotels: 1-2 stars Business people Budget travellers Families  Motels & Motor Inn Some business travellers Families on holidays Visitors travelling by car Tour groups Bed & breakfast Weekend getaways Independent travellers Resorts Couples Families Honeymooning couples Singles / Groups Business Events  Clubs Business people Club members and their guests Caravan parks Families School groups Budget travellers Fast Food Outlet Almost anyone! Serviced apartments Long-term business travellers Families  Tomorrow’s Hotels The flying luxury hotel of tomorrow Cruise ship will sail through the air, not the water Flying Queen Mary 2 that could change the way you think about air travel. Max Speed: 174 mph Capacity: 250 passengers Dimensions: 165 feet (height) x 244 feet (width) x 647 feet (length) Please watch this video https://www.youtube.com/watch?v=CD4Js4XpESA&t=193s  Hotel in the Philippines Hotel is first being establish in 1850's the first hotel build in the Philippines name Hotel Del Oriente in Binondo Manila. The hotel was two story building with an 83 rooms fronting the plaza De Carlos III it was the first class hotel which is beside the famous land mark, la Insular Cigarettes and cigar factory but during Japanese time Hotel Del Oriente and Insular are both burned down and former site now was being occupied by the Metro bank. And the oldest surviving hotel in the country is the Manila Hotel which built in 1912. The Manila Hotel which opened in 1912 and extensively remodelled in the 1970s is a Philippine landmark, home to high society and to political intrigue, and often a scene of historic events.  Group Activity! Quiz 1 & Hotel Presentation next week Thank You!