MODULE 1 Introduction to Lodging Industry: An overview

TIME ALLOTMENT 1Week

INSTRUCTOR ZENAIDA H. GENOLOS

FACEBOOK Zenaida Himlay Genolos

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

I. Introduction to Lodging Industry: An overview

This module will study about the history of lodging, how it started and it flourished, An overview Lodging
industry are in various forms . This 1st module discusses all available information about lodging including its
history and etymology. The accommodation services are well emphasized as well as the structures and for
further clarification and knowledge, this also discusses the different types of hotels in the tourism and
hospitality industry
II. TARGETED COURSE LEARNING OUTCOME
CO.1 Explore and analyze the management and practice of lodging operations and related sales activities
in major operating and support departments.
CO2 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. Discuss the overview of the lodging and hospitality Industry

2. Enumerate and explain hotel classification

3. Understand the challenges in lodging industry

IV. ASSESSMENT

1. Describe the characteristics of the hospitality industry

2. Discuss why service has become such an important facet of the hospitality industry
3. Suggest ways to improve service in tourism and hospitality industry
V. TEACHING-LEARNING ACTIVITIES
A. ENGAGE

Misconception Check
Good service, good food, Slow!.. yes no? defend

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 of Supply chain management, including its usage and importance in the
business, read the article below to help you clarified the module 1

1. https://freshdesk.com/customer-service-skills/customer-service-tips-blog/
2. https://www.slideshare.net/charliezabala7/lodging-accommodation
D. ELABORATE

Infographics

Create an infographic about the supply chain , citing the following important information:

1. Hospitality industry
2. Travel and tourism industry
3. Intangible product
4. coldness

E. EVALUATE

Essay

Write an essay to describe ways to provide successful service in tourism and hospitality industry
RUBRICS

INFOGRAPHIC RUBRIC

ESSAY RUBRIC
Introduction:

LODGING INDUSTRY; AN OVERVIEW

The hotel and lodging industry is a dynamic subset of the hospitality industry. Properties regarding
this industry can go from the smallest overnight stay motel to mamouth Las Vegas style properties
that offer almost every sector of related goods and sevices in the hospitality industry along with other
amenities.

According to the Bureau of Labor Statistics, the hotel and lodging industry "includes all types of
lodging, from luxurious 5-star hotels to youth hostels and RV parks. While many provide simply a
place to spend the night, others cater to longer stays by providing food service, recreational activities,
and meeting rooms."

The travel and tourism industry consists of five parts:

• Lodging operation
s • Transportation services
• Food and beverage operations
• Retail
Activities Managing Front Office Operations

Basic Characteristics of hospitality industry

  The hospitality industry is part of the travel and tourism industry.
 One goal in common: to provide necessary or desired products and services to travellers.
 The hospitality industry consists of Accommodation and food and beverage services.
 Travel and tourism is one of the largest industries in the world.
 The hospitality industry is a fascinating and ever-changing field.
 Many concepts and innovations developed by the hospitality industry have found their way to
others fields such as management, customer services, accounting, leadership skills and food
and beverage operations.

Accommodation as Part of the Travel and Tourism/Hospitality Industry

 Travel and Tourism Industry: All businesses that cater to the needs of the traveling public.
 Hospitality Industry: Refers primarily to businesses that provide accommodations and
foodservices for people when they are away from their homes.

Lodging as Part of the Travel and Tourism/Hospitality Industry

• Three major segments of the Travel and Tourism Industry:

– Hospitality (lodging)
– Transportation services
– Destination alternatives

• Hospitality Industry includes:

– Accommodations
– Foodservices
– Other hospitality operations

Classification of Hotels

• Hotels are commonly classified by:

– Location
– Rate
– Size

• Rack Rate: The price at which a hotel sells its rooms when no discounts of any kind are offered
to the guest; often shortened to rack.
• Hotels in any classification typically share several characteristics:
• Emphasis on safety, cleanliness, and service
• Inseparability of manufacture and sales
• Perishability
• Repetitiveness
• Labor intensive
• Business Travelers: Those who travel primarily for business reasons (often on an expense
account to defray the reasonable travel costs that are incurred).
• Leisure Travelers: Those who travel primarily for personal reasons; these guests use private
funds for travel expenses and are often sensitive to the prices charged.
 • Professional Association: A group of persons who affiliate to promote common interests.
• Trade Association: A group of persons who affiliate because of common business and/or
industry concerns.
• Chapter (Association): A group that is a subset of an association; chapters are often formed
on the basis of geography.

Organization of Hotels

• Organization Chart: A diagram depicting the departments in an organization along with

(usually) the management and non-management positions within each department.
• PBX (public broadcast exchange): The system within the hotel used to process incoming,
internal, and outgoing telephone calls.

• PBX (public broadcast exchange): The system within the hotel used to process incoming,
internal, and outgoing telephone calls.

Hotel Ownership and Management Alternatives

• Hotel Chain: A group of hotels with the same brand name.

• Franchise: An arrangement whereby one party (the brand) allows another party (the hotel’s
owners) to use its logo, name, systems, and resources in exchange for a fee.

• Independent Operator: An entrepreneur who owns or operates one or a very few hospitality
properties; sometimes referred to as a “mom and pop” property.
• Franchisor: One who manages the brand and sells the right to use the brand name.
Real Estate Investment Trust (REIT): A public corporation that sells stock to raise money
(capital) that is then used to purchase real estate, including hotels
• Joint Venture: Partnership comprised of organizations such as corporations, governments,
and/or other entities that is formed to develop a lodging brand or property.
• Management Company: An organization that operates one or more hotels for a fee; also
called a “contract company” or a “contract management company.”

Lodging Industry Challenges

• Types of challenges:
– Operating
– Marketing
– Technological
– Economic

• Operating issues:
– Labor shortages
– Cost containment
– Increased competition
 • Marketing issues:
– Market segmentation and overlapping brands
Market Segmentation: Efforts to focus on a highly defined (smaller) group of
travelers.
– Increased guest sophistication

• Technological issues:
– Third-party wholesalers
– Interactive reservation systems
– Guest innovations
– Data Mining: Using technology to analyze guest-related (and other) data to make
better marketing decisions.
– Yield Management: Demand forecasting systems designed to maximize revenue
by holding rates high during times of high guest room demand and by decreasing
room rates during times of lower guest room demand.

• Economic issues:
– Dependence upon the nation’s economy
Hotel Occupancy Rates: The ratio of guest rooms sold (including comps) to
guest rooms available for sale in a given time period. Always expressed as a
percentage.
# Guest rooms Sold
# Guest rooms Available

• Economic issues:
– Globalization: The condition by which countries and communities within them
throughout the world are becoming increasingly interrelated.
– Safety and terrorism

• Full-service hotel challenges

– Increased competition from limited-service hotels
– CAT 5 Cable: Category five cable; the preferred cable quality to use when providing
certain forms of high-speed Internet access to a standard computer.
– Increased costs required to operate foodservices
– Rising construction costs
• Full-service hotel challenges:
Average Daily Rate (ADR): The average selling price of all guest rooms for a given
time period.
Total Room Revenue
Total Number of Rooms Sold
– Difficulties in developing a unified Internet marketing strategy
 • Limited-service hotel challenges
– Increased consumer expectations
– Fewer profitable locations
– Brand Proliferation: Over-saturation of the market with different brands.
– Franchisor-franchisee conflicts

• Extended-stay hotel challenges

– Too many hotels within segment
RevPar: The average revenue generated by each guest room during a given time period.
Occupancy % (x) ADR = RevPar
– Over-reliance on corporate travel
– Competing in a multi-competitor environment

• Convention hotels/conference center challenges:

– High construction costs
– Competition from nontraditional sources
– Use of meeting technology
Wi-Fi (Wireless Fidelity): An Internet access technology that does not utilize a building’s
wiring system when providing users Internet access.

• Resort/timeshare challenges:
– Lagging productivity gains
– Increased expectations about social/economic responsibilities
– Transnational competition
– Developing creative marketing/exchange programs

Scope of Hospitality and Tourism Industry

 Travel
 Air
 Cruise
 Rail
 Coach
 Auto
 Ecotourism
 Lodging
 Hotels
 Motels
 Meetings, Conventions and Expositions
 Restaurants
 Managed services
 Recreation
  Gaming
 Attractions
 Parks
 Recreation

Characteristics of the Hospitality Industry

 Product is intangible and perishable
 No such thing as business hours
 Hospitality operations run on a 24 hour basis all year round
 Characterized by shift work

Hospitality and Tourism

 Largest and fastest growing industries

 Common dynamics
 Delivery of services and products
 Customer and guest impressions are critical
 Fascinating and ever-changing field
 Can be very rewarding ( have found their way to other fields)

Seven Deadly Sins of Service

1. Apathy (absence of passion)

2. Brush-off (To ignore or behave coldly toward;
3. Coldness
4. Condescension (lack of respect)
5. Robotics
6. Rule book
7. Runaround (form of evasive excuses )

For Success in Service We Need to:

 Focus on the guest

 Understand the role of the guest-contact employee
 Weave a service culture into education and training systems
 Thrive on change

On completion of this unit the student will able to:

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

 It is very important to be aware of all the different types of establishments offering

accommodation within the Hospitality Industry.
 Rating of the Hotel: ( Rating from AAA) Australian Automobile Association (NRMA) and
Australian Hotel Association.
5 star : Establishment of international standard offering 24 hour in room dining, florist, gift shop,
swimming pool, gym and day spa, turndown service and fully licensed with public bar and bottles
shop.
 4 star : Exceptionally well appointed establishment with restaurant and room service
from0700-2300- porter available.
 3 star : limited service, offer basic needs for the guests.

Identify guests and target markets

• Hotel or Inn: An establishment whose primary business is providing lodging facilities for the
general public and fully licensed with public Bar and bottle shops for general public as well.
• Motel: It is a lodging facility that caters primarily to guests arriving by automobile.
• Target Markets: Groups of people that the hotel hopes to retain or attract as guests who have
been identified as potential customers.
• Market Segmentation: to define or identify smaller, distinct groups or “segments” within
larger target markets who share similar traits, needs and wants

• Guest: are the customers of the hospitality industry. The are the people who pay for the
services and facilities provided by hospitality establishments.
• Inbound visitor: A visitor travelling to Australia whose main place of residence is outside
Australia.
Four General ways of classifying hotel

Hotels are classified by :

 Hotel size
 2. Target markets
 3. Levels of Service
 4. Ownership and affiliation.

Types of Hotels

Commercial hotels/corporate hotels

· Airport hotels
· Suite hotels
· Extended stay hotels
· Residential hotels
· Resort hotels

Types of Hotels (continued)

Bed and breakfast hotels
· Vacation ownership and condominium hotels
· Casino hotels
· Convention hotels
· Alternative lodging properties
 
Hotels

 Commercial /corporate Hotels

Located in downtown or business districts- area that are convenient and of interest to their
target markets.
Guest amenities at commercial hotels may include complimentary newspapers, cable
television, swimming pool, health club, high speed internet access.

Airport hotels

Located near the airports- especially international airports.

Target Market: airline passengers, cancelled flight, airline personnel.
Hotel-owned courtesy vans transport guests between the hotel and the airport
Suite Hotels
Suite hotels are among the newest and fastest-growing segments of the lodging industry.
These suite hotels feature guestrooms with a living room and separate bedroom. Some guest suites
includes a compact kitchenette with fridge and mini bar.
Target Market: Professionals such lawyers, accountants

 Resorts Hotels
 Resort hotels are located in the mountains, on an island or exotic location away from crowded
residential areas.
 More leisurely, relaxed atmosphere
 Resort hotels provide special activities such as golf, sailing, skiing.

Hotels ( continued)

 Vacation ownership hotel/time share hotel

 Individuals who purchase the ownership of accommodation for a specific period of time-
usually one or two weeks a year.
 These owners then occupy the unit.
 These hotels are becoming popular in resort areas.
 Casino Hotels
 Hotel with gambling facilities.
 Casino hotels attract guests by promoting gaming and provide a broad range of
entertainment activities.
 Some casino hotels are very large, housing as many as 4,000 guestrooms
Extended Stay Hotels gives you the choice of budget studios for business travel, relocation,
temporary housing or vacations as well as suites for daily and weekly rentals. Free yourself from the
confines of your average hotel room. Every suite has a kitchen so you can cook and eat on your own
schedule. Spend more time relaxing and less money on your next trip for business or leisure.
When should you consider long-term studio suite accommodations?
Working on an extended project away from home
Going away on a budget vacation and still prefer to have a kitchen and access to laundry
Remodelling or buying a home
Relocating to a new job
Visiting relatives

Levels of Service
• There are three levels of service:
• World-Class Service
• Mid-Range service
• Economy/limited Service

World-class Service

 World-class service –sometimes called luxury service.

 Attract top business executives, entertainment celebrities, high-ranking political figures and
wealthy clientele.
 Oversized guestrooms, supply heated towels and floor and selection of refreshment centers,
and more expensive furnishings, décor and artworks in the guest-rooms.
 Housekeeping provide twice daily service a day (turn down service and daily cleaning service)
 World-class hotels stress personalised guest services and maintain high ratio of staff members
to guests.
 In some world-class hotels certain floors are designated as executive floor and offer luxury
services.
 Executive floors contain private lounge, and offered special complimentary food and beverage
services.

Mid-Range Service

 Mid-range service hotels attract the largest segment of the travelling public.
 The service is modest and sufficient.
 The guests who stay in the mid-range service hotels are business people, individual travellers
and families.

Economy/limited service

 These properties provides clean, comfortable and inexpensive rooms and meet the basic
needs of guests.
 Economy service hotels attract budget-minded travellers, tour groups, families with children
and group of conventioneers.
 Ownership and Affiliation Categories

Independent Hotels
· Chain Hotels

· Management Contract
 Franchise
 Referral Group

Independent Hotels

Independent hotels have no relationship to other hotels regarding policies, procedures,

marketing or financial obligations.
For example
An Independent property is a family owned and operated hotel that is not required to conform to any
corporate policy or procedure.
Its unique advantage is autonomy and flexibility.
Independent hotel can quickly adapt to changing market conditioning.
Disadvantages are: unable volume purchasing, and broad advertising

Management contract

 Management companies are organisation that operate properties owned by other. In other
word, management company is hired to run a hotel.
 Management contracting a a means of expanding a hotel company’s operations with far less
investment.
 Advantage: Expertise in operations, financial management, staffing, marketing and reservation
services.

Franchise and referral groups

 Franchising is selling the right to conduct a business.

 Franchisor offers the quality of product and develop standards for design, décor, equipment
and operating procedures.
 Some of the best known U.S hotels belong to franchise and referral groups.
 For example, Four points hotels by Sheraton are franchises.
 Advantage: Volume purchase, amenities, linen and towels. Etc.

Referral group

 A group of independent hotels that have banded together for their common good.
 Hotels within the group refer their departing guests or those guests they cannot
accommodate to other properties in the referral group.
Categories of Guests

Business
· Pleasure
· Group
Business Travelers: Those who travel primarily for business reasons.
Leisure Travelers: Those who travel primarily for personal reasons; these guests use private funds for
travel expenses and are often sensitive to the prices charged.

Business Travel

 The business travel market is important to many lodging properties.

 Business travellers were first and primary markets for hotels dating back to many years.
 Regular business travel is an important source of business for many lodging properties.

Pleasure/leisure Travel
 Pleasure travel is also very important.
 Pleasure travellers are the most difficult to understand.
 Business travellers consider the cost of travel is a necessary expense but pleasure travellers
are price-sensitive.

Group travel

 Two kinds of group:

 An organised tours, travel for pleasure
 Business related group to attend meeting or conventions

Hotel Revenue Sources

 Guest Rooms
 Meeting/Function Space
 Outlets/Food and Beverage outlets

What influences repeat business?

 Many guests say that the most important factors that bring them back to a hotel are:
 1. the quality of services
 2. the property’s overall cleanliness and appearance.
 3. Good service is good business
 Many things affect a guest’s selection of overnight accommodation.
 Buying influences include:
 Satisfactory experiences with a hotel.
 Advertisement by hotel or a chain organisation.
 Recommendation by others.
 Hotel’s location.
 Public relations activities.
  Direct mail communication.
 Travel agent’s negotiating power on room rate to control travel expenses.

Lodging Is a Guest Service Business

Service (Hotel): The process of helping guests by addressing their wants and needs with respect and
dignity in a timely manner

Developing a Quality Culture

• Quality: The consistent delivery of products/services according to expected standards.

• Empowerment: The act of granting authority to employees to make key decisions within the
employees’ areas of responsibility.

• Role of hotel senior managers in quality:

– They must consistently “walk and talk” the philosophy of guest service
– They must empower staff members
– They must establish systems that allow defects to be measured

• Continuous Quality Improvement (CQI): Ongoing efforts within the hotel to better meet (or
exceed) guests’ expectations and to find ways to perform work with better, less costly, and/or
faster methods.

• Planning tools:
– Vision
– Mission statement
– Long-range plan
– Business plan
– Marketing plan
– Operating budget
• Repeat Business: Revenues generated from guests returning to the hotel as a result of
positive experiences on previous visits.
• Word-of-Mouth Advertising: Informal conversations between persons as they discuss their
positive or negative experiences at a hotel.

Planning Guest Service Processes

• Service is not the same as servility.

• Helping guests requires addressing their wants and needs:
– What do guests want?
 – What do they need?

• Benchmarking: The search for best practices and an understanding about how they are
achieved in efforts to determine how well a hospitality organization is doing.
Zero Defects: A goal of no guest-related complaints that is established when guest service processes
are implemented

• Moments of Truth: Any (and every) time a guest has an opportunity to form an impression
about the hospitality organization. Moments of truth can be positive or negative and may (but
do not have to) involve the property’s staff members.

Guest Service Is Delivered by Employees

• Accountability: An obligation created when a staff member is delegated duties/

responsibilities from higher levels of management.

• Front office employees can be empowered to help guests after they:

– Learn about their service mission
– Receive the training and obtain the resources required to meet the needs of guests
– Show ongoing interest in providing exceptional guest service

• Strategies for empowerment:

– Accepting the philosophy that supports empowerment
– Pointing staff in the right direction
– Recognizing the role of the guest
– Removing the barriers that inhibit pride in work
– Monitoring work to assure that standards are consistently attained

• For empowering to be effective, FOMs must:

– Treat employees like adults
– Respect employees as individuals
– Recognize that employees can make significant contributions to the department and
the hotel
– Ask for and utilize their employees’ suggestions
– Trust their staff members
– Allow employees to find pride and joy in the workplace

Today’s FOMs do not wait until problems become significant before they are addressed!