MODULE 2 Hotel accommodation and lodging industry–

TIME ALLOTMENT 2Weeks

INSTRUCTOR ZENAIDA H. GENOLOS

FACEBOOK Zenaida Himlay Genolos

EMAIL Zenaida.genolos.chmsc.edu.ph
CELL NUMBER 09017405937

I. Hotel accommodation and lodging industry–

Hotel accommodation should be distinguished one from the other, as such topic on classification of hotels
according to target the levels of service, likewise the advantages and disadvantages of the different types of
hotel ownership are given emphasis, including the characteristics of business leisure and group market are well
tackled. It also focuses on lodging and hotel operation, and at the same time the discussion on rooms division
II. TARGETED COURSE LEARNING OUTCOME

CO1. Explore and analyze the management and practice of lodging operations and related sales activities in
major operating and support departments.
CO.2 Expose the students on the unique aspects of managing a service lodging establishment
CO3 Introduces Housekeeping department of a hotel and lodging organization including methods, tools,
supplies ,and operations

III. TARGETED TOPIC LEARNING OUTCOME

At the end of the module you should have:

1.Classify hotels in terms of the major target markets attracted to the features and benefits they
offer.
2. Categorize hotels in terms of the level of service they provide for guests.

3. Asertain the advantages and disadvantages of different types of hotel ownership and affiliation.

4. Identify factors that affect travelers’ buying decisions and describe what hotels can do to
reward loyal guests.

5. Describe characteristics of the business, leisure, and group travel markets.

IV. ASSESSMENT

1. Describe the hotel operation according to its classification and the type of target market they cater.
2. Discuss the different factors that affect the buying decision of customer in choosing their hotels and
accommodation
3. Suggest ways to improve the levels of service to met customer’s expectation
V. TEACHING-LEARNING ACTIVITIES
A. ENGAGE
Misconception Check
Staff working in hospitality expect tip top tips.. True? Why?

B. EXPLORE

Interview
Look for an article in the news , google or you tube that uses the technique of providing good service to
guest

C. EXPLAIN

Chapter Reading

To fully appreciate the details min accommodation and lodging, in the hospitality industry, , read the
article below to help you clarified the module 2

1. https://www.researchgate.net/publication/321138869_INNOVATIVE_ACCOMMODATION_FACILI
TIES_IN_TOURISM_AND_HOSPITALITY_INDUSTRY_-_INTEGRATED_HOTELS, nov. 2017,
pdf
2. https://www.youtube.com/watch?v=8OSPLt4R0-k

D. EVALUATE

Essay

Write an essay about the different accommodation and the type of guest they cater
RUBRICS

INFOGRAPHIC RUBRIC

ESSAY RUBRIC
Module 2

ACCOMMODATION AND LODGING INDUSTRY

In essence, hospitality is made up of two services: the provision of overnight accommodation for
people travelling away from home, and options for people dining outside their home. We refer to the
accommodation and food and beverage services sectors together as the hospitality industry. This
chapter explores the accommodation sector, and the Chapter 4 details the food and beverage sector.

Accommodation is a very important part of the tourism infrastructure and development of

tourism is a function of accommodation. It creates a home away from home for the tourist. Hotel
industry is the most sophisticated industry today. The United Nations Conference on International
Travel and Tourism held in 1963, acknowledged the importance of accommodation, both traditional
(hotel, motel) and supplementary (camps, youth hostels and so on as incentives to International
tourism. Many countries have recognized the vital importance of the accommodation industry in
developing their tourism and have coordinated their activities by providing big incentives and
concessions to hoteliers A hotel provides accommodation, meals and refreshment for irregular
periods of time for those who may reserve their accommodation either in advance or on the
premises.
Hotel is defined:
in several ways: “A place which supplies board and lodging” or “A place for the entertainment of
the travellers” [1]. A hotel is an institution in which lodging, meals and other services are provided
for travellers. A hotel also provides amenities like television and facilities like room services,
laundry services, shops, auto rentals, airline ticketing, reservation, and banking. A A hotel is a fixed
immobile installation. Its products and services cannot move to tourists. It is an open and unique
system where the tourist moves in, consumes the product and returns with an intangible product
At the international level, the International Hotel Association (IHA) was founded in London
in 1946. It has its headquarters in Paris now. It brings under its network thousands of international
hotels and individual hoteliers from all over the world. It deals with various aspects of hotel
management and links them together.

It tries to unite the hotel associations of all countries and

provides opportunities to discuss and solve their problems. It also trains young workers at IHA
hotels. It publishes the International Hotel Guide and International Hotel Review every year

According to physical features the accommodation industry can be broadly divided into:

1.Traditional (hotel) accommodation. It includes hotels and motels. Hotels can further
be subdivided into various types: international, commercial, resort, floating, heritage. There are
different kinds of motels: roadside, city motel, tourist cabinet, tourist court.

2. Supplementary accommodation. It includes premises, which offer accommodation

but not necessarily hotel services. They are bungalows, dormitories, villas, youth hostels, travellers
lodge, circuit houses, and inns.

3.New accommodation concepts. These are new concepts of accommodation, which

have come into being. It has the combination of both the types discussed earlier. They include
condominiums, time-sharing pensions, camping grounds, villas, eurotel, farm houses, and apart
hotels

International hotels are the modern western style hotels in almost all metropolitan and other
big cities as well as principal tourist centers. These hotels are luxury hotels and are classified on the
basis of internationally accepted system of classification. The hotels are placed in star categories.
There are five such categories ranging from 5 stars to one star depending upon the facilities and
services provided. Hotels belonging to international chains are owned by public companies and
controlled by a Board of Directors

The commercial hotels cater primarily to the individual travellers as compared to international
hotels where the focus is on the group travel. Most of the commercial hotels receive the travellers
who are there on business. They are situated in important commercial and industrial centers or in
big towns or cities. Private owners run these hotels and their success depends on their efficiency
and kind of services provided Resort hotels cater to the need of holidaymaker, and those tourists who
travel for health or change of climate. Resort hotels are located near the sea, mountains and other
areas of natural beauty. Rest, relaxation and entertainment are the key factors around which resorts
are built. The
type of services and amenities located in resort properties include recreation facilities such as a
swimming pool, golf course, tennis courts, skiing, boating, surf riding and other various indoor
sports. [Resort can be classified on the basis of climate and topography such as summer, winter, and
hill, health resorts, forest resorts and beach resorts

3 types of hotel that have emerged to meet specific market needs

1. budget hotels - • The term budget hotel is challenging to define, however most budget
properties typically have a standardized appearance and offer basic services with limited food
and beverage facilities. Budget hotels were first developed in the United States and built along
the interstate highway system. The first Holiday Inn opened in the United States in 1952; the
first Quality Motel followed in 1963. • In Europe, Accor operates the predominant
European-branded budget rooms. Accor has four hotel brands that were recently redesigned:
hotelF1, ibis budget, ibis Styles, and ibis. These budget brands offer comfort, modern design,
and breakfast on site; ibis Styles is all inclusive, with one price for room night, breakfast, and
internet access (Accor, 2015).

2. Boutique Hotels

gift and note for a returning guest at the Magnolia Hotel and Spa, posted online by the guest
Canada currently has no industry standards to define boutique hotels, but these hotels
generally share some common features. These include having less than 100 rooms and
featuring a distinctive design style and on-site food and beverage options (Boutique Hotel
Association, n.d.). As a reflection of the size of the hotel, a boutique hotel is typically intimate
and has an easily identifiable atmosphere, such as classic, luxurious, quirky, or funky.
 gift and note for a returning guest at the Magnolia Hotel and Spa, posted online by the guest
Canada currently has no industry standards to define boutique hotels, but these hotels
generally share some common features. These include having less than 100 rooms and
featuring a distinctive design style and on-site food and beverage options (Boutique Hotel
Association, n.d.). As a reflection of the size of the hotel, a boutique hotel is typically intimate
and has an easily identifiable atmosphere, such as classic, luxurious, quirky, or funky.
According to Bill Lewis, general manager for the Magnolia Hotel and Spa in Victoria, “guests
seek out boutique hotels for their small size, individual design style, … and personalized
service.” He feels that “maintaining this service level in a small hotel allows for a very
personalized and intimate experience that cannot be matched in large branded hotels”
(personal communication, 2014)

3. Resorts
A resort is a full-service hotel that provides access to or offers a range of recreation
facilities and amenities. A resort is typically the primary provider of the guest experience and
will generally have one signature amenity or attraction (Brey, 2009).
Examples of signature amenities include skiing and mountains, golf, beach and ocean,
lakeside, casino and gaming, all inclusiveness, spa and wellness, marina, tennis, and
waterpark. In addition, resorts also offer secondary experiences and a leisure or retreat-style
environment.

Trends and Issues

The accommodation sector is sensitive to shifting local, regional, and global economic, social,
and political conditions. Businesses must be flexible to meet the needs of their different
markets and evolving trends. These trends affect all hotel types, regions, and destinations
differently. However, overall, hoteliers must respond to these trends in a business landscape
that is increasingly competitive, particularly in markets where the supply base is growing
faster than demand (Hotelier, 2014

The Sharing Economy: Airbnb

The sharing economy is a relatively new economic model in which people rent beds, cars,
boats, and other underutilized assets directly from each other, all coordinated via the internet
(The Economist, 2013). Airbnb is the most prominent example of this model. It provides a
platform for travellers and manages all aspects of the relationship without requiring any
paperwork.

At Airbnb, the host who rents out the space controls the price, the description of the space,
and the guest experience. The host also makes the house rules and has full control over who
books the space. As well, both hosts and guests can rate each other and write reviews on the
website (Cole, 2014).

Airbnb began in 2008 when the founders rented their air mattresses to three visitors in San
Francisco (Fast Company, 2012). In fact, the name Airbnb is derived from “air mattress bed
and breakfast.” However, Airbnb is not only for couch surfers or budget-conscious travellers;
it includes a wide range of spaces in locations all over the world. When users create an
account, they set the price and write the descriptions to advertise the space to guests (Airbnb,
2015). Since 2008, the Airbnb online marketplace has grown rapidly, with more than 1 million
properties worldwide and 30 million guests who used the service by the end of 2014 (Melloy,
2015).

mobile phone
This and other innovations have changed the accommodation landscape as never before. Ten
to 15 years ago online travel agents were a major innovation that changed the distribution
and sale of rooms. But they still had to work with existing hotels, whereas Airbnb has enabled
new entrants into the industry and thus increased supply.

• On the supply side, Airbnb enables individuals to share their spare space for rent; on
the demand side, consumers using Airbnb benefit from increased competition and more
choice. An unanswered question is to what extent Airbnb has impacted the hospitality
industry at large and how it will impact it in the future. A study completed in 2014 in Austin,
Texas, indicates that lower-end hotels, and hotels not catering to business travellers, are more
vulnerable to increased competition from rentals enabled by firms like Airbnb than are hotels
without these characteristics (Zervas, Preserpio, & Byers, 2015).

Distribution and Online Travel Agents

Online travel agents (OTAs) are a valuable marketing and third-party distribution resource for
hotels and play a significant role in online distribution (Inversini & Masiero, 2014). In the first
quarter of 2014, 13.2% of hotel bookings for individual leisure and business travellers
(TravelClick, 2014) were made through OTAs (for example, Expedia, Hotels.com, Kayak.com).
OTAs offer global distribution so that each hotel and chain can be available to anyone at the
click of a button (Then Hospitality, 2014). Smaller independent hotels that do not have the
global marketing and sales resources of a larger chain are able to gain exposure, sell rooms,
and build their reputation through online guest ratings and reviews. OTAs also help hotels
offer combined value and packaging options that are attractive to many consumers (for
example, booking and search options for hotels, car rentals, air fare, attractions, and travel
packages). Customized searches, travel guidance, and rewards points are also available when
booking through an OTA. If a hotel or chain has an exceptional product and service, OTAs
share guest ratings, which can increase the number of reservations and referrals
Key Terms

1. Average daily rate (ADR): average guest room income per occupied room in a given time
period
2. BC Hospitality Foundation (BCHF): created to help support hospitality professionals in their
time of need; now also a provider of scholarships for students in hospitality management and
culinary programs
3. BC Hotel Association (BCHA): the trade association for BC’s hotel industry, which hosts an
annual industry trade show and seminar series, and publishes InnFocus magazine for
professionals
4. BC Lodging and Campgrounds Association (BCLCA): represents the interests of independently
owned campgrounds and lodges in BC
5. Camping and RVing British Columbia Coalition (CRVBCC): represents campground managers
and brings together additional stakeholders including the Recreation Vehicle Dealers
Association of BC and the Freshwater Fisheries Society
6. Competitive set: a marketing term used to identify a group of hotels that include all
competitors that a hotel’s guests are likely to consider as an alternative (minimum of three)
7. Costs per occupied room (CPOR): all the costs associated with making a room ready for a
guest (linens, cleaning costs, guest amenities)
8. Fractional ownership: a financing model that developers use to finance hotel builds by selling
units in one-eighth to one-quarter shares
9. Occupancy: the percentage of all guest rooms in the hotel that are occupied at a given time
10. Revenue per available room (RevPAR): a calculation that combines both occupancy and ADR in
one metric
11. Sharing economy: an internet-based economic system in which consumers share their
resources, typically with people they don’t know, and typically in exchange for money
12. SMERF: an acronym for the social, military, educational, religious, and fraternal segment of
the group travel market

Exercises
• On a piece of paper, list as many types of accommodation classifications (e.g., by size) as you
can think of. Name at least five. Provide examples of each.
• When researching a franchisor, the cost of the franchise must be carefully considered. What
other factors would you consider to determine the value of a franchise fee?
• How should lower-end hotels and hotels that do not cater to business travellers respond to
increased competition from rentals enabled by firms like Airbnb?