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OVERVIEW OF THE ACCOMMODATION INDUSTRY

The Accommodation Industry
The hospitality industry can be defined as the collection of businesses providing accommodation and/or food
and beverages to people away from home, whether for a long or short time (Baker et al., 2011). The
accommodation sector is part of the hospitality industry concerned with providing customers with a
temporary place to stay. At the same time, the hospitality industry is a part of a larger group of economic
activities referred to as tourism.

Below are some of the characteristics of the tourism and hospitality industry (Tuazon-Disimulacion, 2016):
• Services are primarily intangible. It means guests cannot test a room for a night to check if it is
okay or have a taste test before dining to know if the food is delicious. Products are exclusively for
guests and not for possession.
• Services are primarily perishable. It means that if a guestroom is not rented on a specific date, the
revenue for that room is lost forever. Similarly, an unsold seat on a particular flight has lost the
chance of being added to the airline’s revenue. It is a characteristic of products and services that
do not allow the product or service to be stored for sale at a future date.
• Manufacture and sales are inseparable. It means a room cannot be sold anywhere, just like
tangible goods. It can only be sold and used simultaneously in its exact location, not elsewhere. In
other words, it is impossible to separate the supply or production of the service from its
consumption.
• The operating process is repetitive. Most of the processes in the accommodation industry are
routine. For instance, how a room is prepared for a particular guest is the same as how it will be
prepared for the next guest.

Classifications of Hotels (Arenas, 2022)

The development of accommodation has typically accompanied the growth of resorts, areas of tourism
activity, and the demand to visit specific areas. Accommodation assumes many forms, and not all of them can
fit the conventional image of a hotel. A hotel is an establishment offering sleeping accommodations to anyone
willing to pay a reasonable sum for the services and facilities provided (Chan & Mackenzie, M., 2013).
According to the Department of Tourism (DOT), a hotel is defined as a building, edifice, or premises, or a
completely independent part thereof, which is used for the regular reception, accommodation, or lodging of
travelers and tourists and the provision of services incidental thereto for a fee.

Hotels can be classified in various ways. In the Philippines, DOT implements the National Accommodation
Standards for Hotels, Resorts, and Apartment Hotels using the Star Grading System to classify accommodation
enterprises. It is a points-based rating system that includes five (5) levels of accommodation standards—from
one (1) to five (5) stars— applicable to hotels, resorts, and apartment hotels. The star bands for hotels, resorts,
and apartment hotels are as follows:
• One Star: These enterprises appeal to budget-minded travelers. These offer a limited range of
facilities and services.
• Two Star: These enterprises appeal to tourists seeking more than basic accommodation. These
offer expanded facilities and a higher level of comfort.
• Three Star: These enterprises offer a very good level of accommodation. These have more
spacious public areas, higher quality facilities, and a greater range of services.

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• Four Star: These enterprises are upscale in all areas. Accommodation is refined and stylish. Service
is responsive, often including an extensive array of facilities.
• Five Star: These enterprises reflect the characteristics of luxury and sophistication. The facilities
are world-class in every manner, and the meticulous service exceeds all guest expectations.
To obtain higher stars, progressively higher service and facility quality, facility condition, and improved
business practices like environmental management should be provided across all business areas to garner
higher points.
Hotels can also be classified according to their location, target market, size or the number of rooms, level of
service, and guests’ length of stay.
• According to Location
o City Hotels – These hotels are usually located in the heart of the city, within a short distance
from shopping centers, cinemas, public or private buildings, and business centers. Rates in
these hotels are generally expensive due to their locational advantage.
o Suburban Hotels – These hotels are in downtown areas where rates are considered moderate
to low, usually ideal for budget travelers.
o Airport Hotels – These are hotels set up near airports that cater to transit guests who might
have to stay at the hotel between flights.
o Resort Hotels – These are usually located in mountains, islands, or other exotic locations away
from cities. These hotels offer scenic views and recreational activities like golf, tennis, sailing,
skiing, and swimming.
o Forest Hotels – These are located within the forest range and cater to tourists visiting forest
areas for camping and other recreational activities.
o Motor Hotels/Motels – These are primarily located on highways that provide enough parking
space for stopovers. These usually cater to motorists.
o Boatels – These are purpose-built boats offering small but luxurious accommodations for
travelers amid waterways.
• According to Target Market
o Commercial Hotels – These mainly cater to businesspersons. They are situated in the heart of
the city.
o Convention Hotels – These have a large complex accommodating many people attending a
convention, conference, workshop, or similar events.
o Extended-stay Hotels – These are designed for travelers who intend to stay in a hotel for five
(5) days or longer.
o Casino Hotels – Hotels with predominantly gambling facilities may be categorized as a distinct
group. These hotels tend to cater to leisure and vacation travelers.
• According to the Size or Number of Rooms. A hotel can be classified according to its size. It can
be a small, medium-sized, or large hotel. The number of rooms within each classification varies
from one (1) country to another. It enables hotels with similar sizes or number of rooms to
compare operating procedures and statistical results.
• According to the Level of Service
o World-class Service – These are also called luxury hotels. They target top business executives,
entertainment celebrities, high-ranking political figures, and wealthy clientele as their primary

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markets. They provide upscale restaurants, lounges, valet, concierge services, and private
dining facilities.
o Mid-Range Service – Hotels offering mid-range service appeal to the largest segment of the
traveling public. Services are modest but sufficient and are considered enough for travelers.
Hotels of this kind do not provide elaborate service and adequate staffing as luxury hotels.
o Budget/Limited-Service – These hotels provide clean, comfortable, safe, and inexpensive
rooms that meet guests’ basic needs. Budget hotels appeal primarily to budget-minded
travelers who want a room with minimum services and amenities required for a comfortable
stay without unnecessarily paying additional costs for services.
• According to Guests’ Length of Stay
o Transient Hotels – These are hotels where a guest can register for a day or even less.
o Residential Hotels – These hotels offer accommodation to guests who can stay for a minimum
period of one (1) month and up to two (2) years. The hotel signs a detailed lease agreement
with the customer.
o Semi-residential Hotels – These are hotels that incorporate the feature of both transient and
residential hotels.

References:
Arenas, C. (2022). Fundamentals in lodging operations (2nd Ed.). Edric Publishing House
Baker, S., Huyton, J., & Bradley, P. (2011). Principles of hotel front office operations. Cengage Learning.
Chan, B., & Mackenzie, M. (2013). Introduction to hospitality [PDF]. Retrieved from
http://www.edb.gov.hk/attachment/en/curriculum-development/kla/pshe/nss-curriculum/tourism-and-
hospitality-studies/Hospitality_English_21_June.pdf on March 27, 2017
Chibili, M. N. (2016). Modern hotel operations management. Routledge, Taylor & Francis Group.
Cruz, Z. (2019). Micro perspective of tourism and hospitality. REX Book Store.
Department of Tourism (DOT) (May 02, 2012). National Accommodation Standards. Retrieved from
http://accreditationonline.tourism.gov.ph/Downloadables/Standards/Standards_Hotel.pdf on December 07,
2018
Lara, J. (n.d). Accommodation operations and management. [PDF]. Polytechnic University of the Philippines, College of
Tourism, Hospitality & Transportation Management. Retrieved January 16, 20203, from
https://www.scribd.com/document/521179052/IM-ACCOMMODATION-OPERATIONS-PDF
Official Gazette (August 14, 2013). DOT implements new national accommodation standards. Retrieved from
https://www.officialgazette.gov.ph/2013/08/14/dot-implements-new-national-accommodation-standards/ on
December 07, 2018
Tuazon - Disimulacion, M. A. (2016). Principles of tourism 2. Books Atbp. Publishing Corp.
What are the different types of accommodation? (2022). In Amenitiz. Retrieved January 26, 2023, from
https://www.amenitiz.com/en/blog/what-are-the-different-types-of-accommodation/

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