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 – term contract and providing ce
Few hotels in the UK could suuurvive 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 their rates for the leisure market, which spppecial 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
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 offers food and beverage service on the same premises an
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 summer vocation hotels accessible by the developing rail lines of th
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 to 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.
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 the 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.
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 of 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, Inc.), Howard Johnson, and Days Inn.
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 contracts 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.
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 or 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 rooms 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.
There is, of course, 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
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 information are quoted the hotel’s rack rate, and charged this rate for the duration of the stay.
Group rates are discounted rates, usually negotiated, for purchasers of tour packages or organizations which book large blocks of rooms. A group rate is usually, but not necessarily, lower than the rack rate. A group rate may represent a special rate offered to a travel agency or tour wholesaler based on a commitment to purchase a minimum number of rooms during a set period of time. A group rate might also be extended to a club or association desirous of booking multiple rooms for attendees of meeting, seminar, or conference at the hotel.
Many hotels guarantee a discounted rate to corporate travelers, traveling sales representatives, military personnel, airline personnel, or other repeat clients. To qualify for a special or promotional rate, the guest must usually be employed by participating firm or organization.
Promotional rates include special discounted rates for weekend stays or other minimum stays on specified check-in date, honeymoon stays, or special promotions. The package rate is generally offered to boost room occupancy levels during periods when the occupancy level is traditionally lower, such as in the off-season in a seasonal resort area, or on weekends at a hotel that caters to the business traveler.
The hotel’s normal (rack) rates are normally based on three factors:
1. Room category
The traditional room categories include the following:
A. Deluxe or maximum rate
B. Superior or moderate rate
C. Standard or minimum rate
D. Economy or budget rate
S Suite deluxe
Deluxe – The deluxe, or A room represents the maximum rate charged by the hotel for a regular – size sleeping room. This type of room generally offers the best available location in the hotel, with the bets view and highest level of comfort, furnishings, and decor. Typical amenities often include a fully stocked bar or refrigerator. Bedding usually includes queen- or king-size beds.
Superior – The superior, or B, room represents the moderate or medium rate charged by the hotel. This type of rooms is usually located on the ground floor with an acceptable view and may include a double, queen-, or king-size bed.
Standard – The standard, or C, room represents the hotel’s minimum rate for regular size sleeping rooms. The bedding typically consists of one or two double beds, a queen-size bed, or two twin beds. Rooms in this category usually offer the least attractive view and the least convenient location in the hotel.
Economy – A hotel may offer an economy, or D, room below the normal minimum rate. This type of room is usually reserved for overflow or emergency situations and often has distinct drawbacks, such as undersize or twin bedding, an exceptionally small floorplan, and an undesirable location.
Suite – A suite, or S, accommodation normally consists of two or more rooms, typically a parlor and sleeping room. A suite may have more then one bedroom, or extra rooms such as a kitchenette or conference room. Traditional amenities provided with a suite include a stocked wet bar and refrigerator.
Besides room category, the rack rate is also based on the type of bedding in the room. Bedding commonly falls in to five types:
K King-size bed
Q Queen-size bed
D Double bed
T Twin bed
S Single bed
King-size beds are normally the largest size bedding available A king-size bed is approximately the same size as two twin beds laid side by side. One or two king-size beds are commonly provided in a deluxe (A) room or suite (S).
Queen-size beds are from 10 to 25 percent smaller than king-size beds, but 25 percent than standard double beds. A queen-size bed may be found in a room of any rate category; some hotels do not distinguish between queen-size beds and double beds.
The standard double bed is 25 percent smaller then a queen-size bed. One or two double beds may be provided in any room category. In today’s bedding market, the double bed is considered more suitable fore one adult than two.
The standard twin bed is about one half the size of a standard king-size bed. As a rule, a room with twin bedding always has two beds.
A single bed may refer to a room with one twin bed, or one bed of any size, offered only for single occupany.
Room Rate Codes
Room rates categories are often identified by a code denoting the room category, number of beds, and bedding type. For example, the A1K rate represents a deluxe (A) room with one king-size bed.
The following are additional examples of room rate categories:
A1Q – A deluxe (A) room with one queen-size bed.
B2D – A superior (B) room with two double beds.
B1Q – A superior (B) room with one queen-size bed.
C2T – A standard (C) room with two twin beds
S2K – A suite (S) with two king-size beds
D1S – An economy room with one single bed
In addition to rack rates, the following codes are commonly used to identify group and special rates:
GRP – Group rate
TUR – Tour rate
COR – Corporate rate
MIL – Military/ government personnel rate.
AGT – Travel agent/airline personnel rate
Group rates fall in to one or more of the following classifications:
Group rates are often, but not necessarily, lower than the hotel’s regular rack rates. A group rate may bee either an occupancy rate (based on the number of persons staying in the room) or a flat rate (without regard to the number of persons).
Group Discounts – The hotel may offer a rate to increase the overall occupancy rate, or to maintain a consistent level of occupancy year-round. In return for a commitment to purchase a certain volume of rooms, the group normally receives a discount.
Tour Package Discounts – A tour wholesaler may agree to purchase a minimum number of rooms from the hotel during a set period, for example, within twelve mouths. The hotel offers the rooms to the packager at a discount, enabling the packager to realize a small profit or to offer discounts to travelers who purchase tour packages.
Guaranteed Availability – If the hotel normally has a high level of occupancy, the group rate may simply guarantee availability of a predetermined number of rooms, with out offering a discount.
Special Rates – Most hotels offer special discounted rates to repeat clients or industry associates, such as corporate travelers, military personnel, and airline or travel agency personnel.
Corporate Rate – Corporate travelers receive preferential treatment as “bread and butter” clientele of the typical commercial lodging establishment. A corporate rate program encourages business from employees traveling on behalf of a participating company. To earn a corporate discount, the company may be required to guarantee a minimum number of rooms to be occupied during a set period of time, for example, within twelve months. Some hotels offer corporate rates to any legitimate business traveler, regardless of his or her employer.
Government Rate – The government rate is extended to civilian employees of the federal government, usually on the basis of a contract between the hotel and a specific department or agency. Discounted rates may also be offered to any government employee with valid ID, to encourage repeat business.
Military Rate – A military rate is often extended to members of the armed services, either on the basis of a contract or as a promotional vehicle to generate repeat business.
Agent rate – The agent rate is hotel’s discounted rate for travel agents and airline personnel. A n agent rate is generally not valid during periods when the hotel is sold out.
Salesperson Rate – Preferential rates are often extended to traveling sales representatives during the off-season, especially at a motor hotel or motel.
Local Business Rate – The hotel may also offer a local business rate, guaranteeing room availability and a discounted rate to preferred businesses in the community.
Day Rate – The day rate applies to clients who utilize a room during the day without staying overnight.
Package Rates – The hotel’s package rates usually include promotional discounts to encourage occupancy during slack or off-season periods, or to introduce new prospective clients to the facilities. The following types of rate packages are examples
Weekend Rate – A commercial hotel which relies heavily on business travelers typically has a low occupancy rate on weekends. A special rate may apply for weekend packages, usually Friday, Saturday, and Sunday nights. The package may include a food and beverage allowance at the hotel’s restaurant.
Promotion Package Rate – Resort hotels with strong weekend and holiday business often experience low occupancy during the week. The boost occupancy levels during these slack periods, the hotel may offer a promotional package, normally based on double occupancy for stays of three days to one week. The package may include a food and beverage allowance at the hotel’s restaurant or such amenities as free gambling chips at the hotel casino.
Miscellaneous Rate Policies – The hotels may have other rate programs or policies for special guest situations, the following are examples:
Family Plan – Many hotels offer a family plan in which children under a specified age may stay free of charge in the same room with their parents, using the bedding provided. The room charge is the same as the rate for parents only, for either one or two adults. If additional bedding is required, a charge may apply for an extra rollaway bed. If two rooms are required the single-occupancy rate for each room will be charged.
Run of the House – The run of the house refers to the best room available at the time of check-in when the hotel does not, or, in some instance, cannot, guarantee a particular room type, location, or bedding. The hotel may extend a specified rate for any available room, or may simply guarantee the best room available at the going rate.
Connecting Rooms – Adjoining rooms with connecting doors are generally available at a slightly higher rate than separate rooms with out connecting doors or in different locations in the hotel.
Great scope exists for the use of information technology by hotels. This would directly benefit the business guest by offering considerable efficiency gains.
According o a MORI survey carried out 1992, 70 per cent of the hotel chains polled where not linked to a computer reservation system (CRS), and only half where using computerized property management systems, which allocate rooms to guest and keep track of housekeeping, maintenance and supplies.
Hotel are increasingly becoming aware of the potential offered by linking up wit the airline-owned ticket reservation systems, Direct on-line links with these CRSs represent an important supplementary reservations system for hotels. With direct links through CRSs, confirmation of room request is instantaneous, eliminating the need for fax and telex messages, which can go astray.
So hotel business is growing very fast. Hotels became more and more important thing in our life. Because then you are traveling you want sleep well and confortale. Hotels are very important for tourism business. The hotels perfection helps tourism industry to attract more clients.