The Lodging Industry

Standard 2: Objective 1
Travel and Tourism Marketing
Evolution of the Hotel~
 INN – Ancestor to the hotel
 Small, people shared rooms AND beds. Cleanliness was a
problem – bed bugs/fleas!
 Indoor plumbing – 1800’s
Hotel Industry Milestones
 U.S.A. and Canada – First Hotels
 USA First grand hotel – Boston’s
which included 4 meals!
 Started the “Chain Hotel”
concept and private baths in
each room –
Ellsworth Milton Statler
 Greatest Hotelier of all time –
Ce’sar Ritz
Hotel Industry Milestones cont.
 First No-frills motel –
Motel 6 – 1963 ($6/night)
 First Atrium Motel -
Hyatt Regency in Atlanta
Hotels traditionally were
established near
Conrad HILTON…
 Sometimes called, “The
Biggest Hotel Man in
the World”
He catered to the American
Business Traveler
Also opened up the
Caribbean for leisure travel
Hotel Classifications
 Location
 Guest Type
 Price
 Style and Function
HOTEL Location
 Resorts – great locations, lots of amenities/activities
 Airport – business or leisure AND airline employees
 Freeway access – usually for one night guests
traveling to another destination
 Downtown (bigger cities) – near shopping or business
 Conference Centers - convention/meetings
HOTEL Guests
Business Guests –
Business, conventions,
Leisure Guests –
Vacation for pleasure
 BUDGET (or Economy): Inexpensive, limited
services (Comfort Inn, Motel 6)
 MID PRICE: More services than budget (Holiday
Inn Express, Courtyard)
 UPSCALE (luxury): Great locations, many services
and amenities (Grand America, Hyatt Regency)
HOTEL Style and Function
 All Suite: Larger rooms,
separate living areas
 Extended Stay: More
space for guests needing
to stay for longer periods
of time (kitchenettes)
 Bed-n-Breakfasts: Fewer
rooms, lots of personal
service AND cooked
HOTEL Style and Function
 Spas: Health related services (Biggest Loser at
Fitness Ridge)
 Vacation Properties (Time Shares): Guests can
“buy” a lodging location for period of time
 Retreat Centers: Business travelers who want a
secluded location.
Yield Management
 Setting different
prices for goods
and services in an
effort to maximize
revenue when
limited capacity is
a factor.
Yield Management Pricing
Average Daily Balance (ADR)
Occupancy percentage (OCC%)
Total sales / total number of rooms = ADR
Number of rooms sold / # of rooms available = OCC%
Revenue per available room (RevPAR)
Revenue / total rooms available = RevPAR
Room Rate Variables
 Room size and amenities
 Location of the room (ocean view or parking lot)
 Number of people in the room
 Group, corporate or convention rate
 Taxes, (each city is different), resort & service fee’s
 Season
 Cost of operation and quality of services
 Currency fluctuations
 Hotel prices are quoted WITHOUT taxes, service
charges or resort fee’s.
Hotel Room Rates
 Rack Rates – price of a room “originally”
 Frequent-guest incentives – rewards for
members with each stay. Can earn points for
free nights.
 Weekend Rates – in cities, where business
traveler’s usually stay.

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