Modern hotels and motels

INTRODUCTION

Hotels provide the vast majority of the accommodation for those traveling on business, atending conferences and exibitions or perticipating in incentives trips. In the UK hotels and guset hauses between them account for two – thirds of all business tourism accomodation. Only universities ( mainly for conferences ) and friends and family provide any other significant forms of accommodation.

A hotel is an establishment of a permanent nature, of four or more bedrooms offering bed and breakfast on short – tterm contract and providing certain minimum standarts.The term hotel covers boarding – hauses, inns guesthauses, bed – and breakfast establishments, unclassified hotels, in adition to one, two,three, four, and five star hotels which may or may not be licensed to serve liquor. Hotels vary by location (costal.countryside, small towns, large towns, cities), demand (business or holiday), size (four bedrooms to several hundred bedrooms), standard (unclassified five star), owership (independent, franchised or group operated, for example) and atmosphere (busy/ efficient or rrelaxed/homely).

Few hotels in the UK could survive on their leisure clientele alone.Particulary in city locations, hotels depend on high – spending business guests to fill their rooms from Monday to Friday. Only then the weekend arrives do many hotels cut ttheir rates for the leisure market, which special weekend deals.

A Company or an exibition or conference organiser may be able to negotiate a special corporate or conference rate with hoteliers, if they guarantee an edequate volume of guests. But providing for the business client presents a number of challenges to hotel owners.

Business guests make their own particular demands on hotels. What do hotels have to provide in order to cater succsefully for this distinctive market?

The History of Hotels and Motels

Traditional Hotel

The traditional hotel is descendant of the grand hotels of the Golden Age – Walorf – Astoria in New York, the Palace in San Francisco, and the Plazza hotel in Chicago. Besides comfortable accommodations with private baths, a traditional hotel ooffers food and beverage service on the same premises and maintains a large service staff, including uniformed bell service.

To meet the needs of leisure travelers, hotels adopted a variety of amenities such as swimming pools, tennis courts and golf courses, exercise facilities, and health clubs, creating a new type of lodging establishment – the resort.

The Evolution of the Resort Hotel

The resort business has undergone many changes to meet the changing tastes of America at leisure. The first American resorts were ssummer vocation hotels accessible by the developing rail lines of the 1800s Mineral srings and spas first drew people to resort hotels hotels such as the Greenbrier at White Sulnur Springs, West Virginia, the Saratoga in New York and Warm Springs in Georgia. These traditional summer resorts gave way to seach and mountain resorts in Minnesota, Michigan, Arkansas, the Rocky Mountains, the lirondack and Catskill Mountains in New York and seashore resorts up and down the Atlantic coast.

Since the emergence of widespread jet travel, Hawaiian and Caribbean destinations, including the Virgin Islands, enjoy the largest per – capita share of U.S tourism dollars. California attracts the greatest number of tourist. Recently, southwestern states, particulary Arizona have enjoyed phenome – non economic grown as result of their resort populations.

Over the past two years decades, two new, highly profitable resorts categories emerged: the health – oriented resort and the invention center.

Health – Oriented Resorts The fitness emerged in 1960s as a major influence in the U.S consumer economy. On the East Coast and in Florida, numerous of health – oriented resorts emerged out with specialized services for diet control, exercise regiments, and physical fitness facilities. The health fad also brought new life tto the old spas.

Conventions and Conference Centers To conventions groups, the resort has become the ideal environment for shedding the distractions of the city and focusing on business in a relaxed, comfortable atmosphere. Many traditional resorts have remodeled their facilities to better accommodate large convention gatherings.

Typically, conventions are scheduled during the off – season. The additional revenues earned from the convention trade are so essential for many resorts that accommodating groups may be a priority, on or off-season.

Budget Motels

The first budget motel Six, appeared in 1963. By the early 1970s, the idea of a no-frills, low-rate motel had captured the imaginations of investors and travelers alike. Constructions of budget motels spawned more than 150,000 new rooms in the three-year period between 1972 and 1975.

A budget motel offers its guests modest but sanitary accommodations at rates as low as $26 per night. To maintain low-end rates, budget motels minimize real estate and construction costs by using prefabricated materials and eliminating lobbies and, sometimes, swimming pools. Operating coast are kept low by eliminating food and beverage service and employing small staffs. Besides Motel Six, other successful budget motel chains include Super Eight, Regal Eight Inns, Days Inns, and Scottish Inns. Over tthe past decade, major chains of “budget luxury hotels,” such ass Embassy Suites, Courtyard by Marriott, and Hampton Inns, have competed favorably against both budget motels and mid-to-high priced lodging establishments.

The Impact of Major Chains

Hotel chains account for the majority of revenues in the hotel industry. After World War II, the Statler, Hilton, and Sheraton chains established a foothold on the American lodging trade. Many other well-known chains continue to thrive today, including Marriott, Loews, Westin, Radisson, and the French-owned Sofitel chain.

A hotel that is part of a large chain possesses several competitive advantages over the independent hotelier. For example a chain outlet realizes significant discounts on the purchase of materials and supplies. The hotel is also poised to attract highly trained and experienced employees, whose combined knowledge benefits the operation. A chain hotel can conduct national advertising no independent operator can afford. An established chain wit a proven track record is also in a better position to rise money to improve or expand its operations.

Consumers tend to favor recognizable products, and hotels are no exception to this rule. A Famous chain attracts more travelers simply because it is well known.

The Co-Owner Chain

The co-owner chain is similar to a chain

operation, except that a local investor holds an equal partnership in stock with the chain company for a particular establishment. The company, not the investor finances, builds, and manages the hotel or motel.

Franchises

A franchise is an agreement between an independent hotel owner and a chain organization or franchisor. The independent owner, or franchisee, is responsible for construction, maintenance, service, purchasing, management, and operation of the establishment.

For a free, the franchisee receives a license to use the brand name and logo oof the national chain or franchise organization. He or she may also receive assistance with architectural planning and financing. The Franchisor trains the franchisee in hotel operations and management, and offers free assistance in general planning. The franchisee participates in the chains internal referral system and benefits from national advertising conducted by the franchisor on behalf of all the franchisees in the organization.

The most successful franchise lodging chains include Holiday Inns, Ramada Inns, Hilton Inns (a subsidiary of Hilton Hotels, IInc.), Howard Johnson, and Days Inn.

Management Contract

The management contract concept is similar to franchise arrangement, but provides the hotel chain with additional security against the likelihood of failure. Under a management contract, the chain finances and builds the hotel, then ccontracts with a local manager to operate the establishment under the chains name and logo.

The manager is responsible for all operating costs but receives a share of the profits.

Hotel Ratings

The Michelin travel guide, a widely recognized and highly respected tourism reference, initiated the practice of classifying and rating lodging establishments. Other travel guides, hospitality trade associations, and governmental agencies have since adopted similar practices as frame of reference for prospective guests.

The most common classification systems involve three, four, or five levels of accommodations and service. Some rating methods involve the award of one or more “stars,” according to the establishment’s comparative rating.

The following classifications are widely recognized in the industry:

1. Deluxe or luxury

2. First class superior

3. Tourist class or standard

4. Budget class or economy

Deluxe oor luxury

This classification denotes the highest standard or excellence in the level of luxury and comfort of the surroundings; cleanliness and efficiency; staff specialization, competence, and courtesy; and diversity and quality of food and beverage service. A typical deluxe hotel has at least 10 percent of its space devoted to luxury suites, and two or more dining rooms, usually a gourmet-style dining room and a family-style restaurant, both of which are themselves highly rated as restaurants. All, or nearly all rrooms have outstanding views, location and ambience. Rates may range from $100.00 to $2,000.00 per night, depending on the market, location, and type of accommodation.

First Class or Superior

Hotels in this class are near-luxurious, with outstanding comfort and decor, or highly trained and competent staff, and very good food and beverage facilities. A typical superior hotel has at least one luxury suite, two dining rooms, and a cocktail lounge. Many of the rooms have excellent views, refrigerators, and fully stocked bars. Rates typically range from $60.00 to $300.00 per night, depending on market, location, and type of accommodation.

Tourist Class or Standard

The tourist class hotel has all the traditional trappings of a modern hotel, including above-average luxury and comfort, exceptional decor, and some sort of food and beverage service. Some rooms have views or advantageous locations, for example, poolside. The rate range is generally from $ 50.00 to $200.00 per night, depending on market, location, and type of accommodation.

Budget or Economy

The budget lodging establishment provides efficient, sanitary private rooms with bath. The furnishings and decor are adequate, usually including a television and phone. Food and beverage service may not be available. The rates may range from $30.00 to $70.00.

Unrated

There is, of ccourse, a class of lodging establishments that falls below these four levels. This other, “unrated” class comprised of hotels and motels where many business and leisure travelers – particularly the people who inspect and rate lodging establishments – might not care to pass the night.

Lodging ratings are relative from one market to another. What might be considered a deluxe hotel in Honduras might be considered a tourist class establishment (or worse) in Hawaii.

Room Types and Rates

A typical lodging establishment has four rate categories:

1. Back rates

2. Special or promotional rates

3. Group or tour rates

4. Package rates

Rack Rates

The hotel’s rack rates are the establishment’s normal room rates. The rack rate is based on the room category and type of bedding. Unless otherwise specified, guests requesting rate or reservation ...