Download - The Lodging Industry
The Lodging IndustryThe Lodging Industry
Understanding LodgingUnderstanding Lodging
The lodging The lodging industry in the industry in the United States United States
has always been has always been strongly strongly
influenced by influenced by changes in changes in
transportation.transportation.
Mid-1600sMid-1600s
Stage coach routes establishedStage coach routes established Coaching inns became popular Coaching inns became popular
resting places for travelersresting places for travelers Expected a bed and a meal for the Expected a bed and a meal for the
eveningevening
1794-18281794-1828 1794 City Hotel in 1794 City Hotel in
New York City opensNew York City opens The first building in The first building in
the US designed the US designed specifically as a hotel.specifically as a hotel.
1828 The Tremont 1828 The Tremont House, first grand House, first grand hotel, was built in hotel, was built in Boston.Boston.
First hotel to offer First hotel to offer private rooms with private rooms with locking doors.locking doors.
The RailroadThe Railroad
Inns, taverns and foodservice facilities Inns, taverns and foodservice facilities located near railway stations began to located near railway stations began to grow.grow.
Famous resorts because of the railway Famous resorts because of the railway include Hotel del Coronado near San Diego include Hotel del Coronado near San Diego and the Greenbrair Resort in West Virginia. and the Greenbrair Resort in West Virginia. Yellowstone was also a railway resort. Yellowstone was also a railway resort.
Conrad HiltonConrad Hilton
A banker in New Mexico purchased A banker in New Mexico purchased his first hotel around 1900. It was in his first hotel around 1900. It was in Cisco Texas.Cisco Texas.
This began his chain of hotels.This began his chain of hotels. Other hotels around this time: Ritz Other hotels around this time: Ritz
Carlton in Boston and the Plaza in Carlton in Boston and the Plaza in New York City.New York City.
1950’s1950’s
Increased availability and popularity of the Increased availability and popularity of the automobile and a new interstate freeway automobile and a new interstate freeway system made cross country vacations a system made cross country vacations a popular option.popular option.
Motels sprang up along highways offering Motels sprang up along highways offering travelers a place to bathe, sleep and eat.travelers a place to bathe, sleep and eat.
The Airline IndustryThe Airline Industry
1958 commercial airlines became popular.1958 commercial airlines became popular. Builders moved toward airports for hotels Builders moved toward airports for hotels
and restaurants.and restaurants.
Lodging Operations OrganizationLodging Operations Organization
Front of the house: employees who have Front of the house: employees who have direct contact to the publicdirect contact to the public
Back of the house: supporting operations, Back of the house: supporting operations, behind the scenesbehind the scenes
OROR Administrative Departments: Manage Administrative Departments: Manage
business (accounting, human resources, business (accounting, human resources, training, marketing, sales)training, marketing, sales)
Service Departments: responsible for Service Departments: responsible for serving guests directlyserving guests directly
Administrative DepartmentsAdministrative Departments
General Manager (GM)General Manager (GM) Accounting and Accounting and
Financial Management Financial Management (Controller)(Controller)
Human ResourcesHuman Resources Marketing and SalesMarketing and Sales
Service DepartmentsService Departments
Front Office Front Office HousekeepingHousekeeping Engineering and Engineering and
Facility Facility MaintenanceMaintenance
SecuritySecurity Food and Beverage Food and Beverage
(F & B)(F & B)
Leisure TravelersLeisure Travelers
On vacationOn vacation Shopping, fine dinning, sightseeing, Shopping, fine dinning, sightseeing,
sports events, relaxsports events, relax May provide activities for children, May provide activities for children,
on-site recreation or health facilitieson-site recreation or health facilities
Business TravelersBusiness Travelers
Looking for well lit work spaces, Looking for well lit work spaces, telephones, modems, copiers, fax telephones, modems, copiers, fax machines.machines.
Meeting facilitiesMeeting facilities 24 hour service - valet parking, 24 hour service - valet parking,
secure lodgingsecure lodging
AmenitiesAmenities
RestaurantsRestaurants Parking GaragesParking Garages BoutiquesBoutiques Barber shopsBarber shops Dry CleanersDry Cleaners FloristsFlorists Swimming poolsSwimming pools Room serviceRoom service
Cable TelevisionCable Television Pay per viewPay per view BathrobesBathrobes Gift shopsGift shops KitchensKitchens Computer modemsComputer modems SpaSpa Recreational Recreational
activitiesactivities
Types of PropertiesTypes of Properties
Full ServiceFull Service LuxuryLuxury EconomyEconomy Mid-pricedMid-priced All-suiteAll-suite ResortsResorts Bed and BreakfastBed and Breakfast
Terms to KnowTerms to Know FolioFolio- The written record of a hotel guest's account.- The written record of a hotel guest's account. CRS Central Reservation System- CRS Central Reservation System- A central A central
reservation system (CRS) is a computerized system that reservation system (CRS) is a computerized system that stores and distributes information on a hotel, resort, or stores and distributes information on a hotel, resort, or other lodging facilityother lodging facility
Room Inventory- Room Inventory- Total number of rooms a lodging Total number of rooms a lodging property has to sellproperty has to sell
Block- Block- In a hotel, a number of rooms set aside or In a hotel, a number of rooms set aside or reserved for a group.reserved for a group.
Rooms Forecast- Rooms Forecast- Analysis of anticipated room inventory Analysis of anticipated room inventory that is based on past room sales; allows front office that is based on past room sales; allows front office manager to determine projected revenues and make manager to determine projected revenues and make decisions about rates and reservations.decisions about rates and reservations.
No-Shows- No-Shows- A passenger who doesn't arrive for a flight or A passenger who doesn't arrive for a flight or a hotel guest who reserves but never arrives.a hotel guest who reserves but never arrives.
Overbook- Overbook- The practice of taking more reservations than The practice of taking more reservations than there are seats, rooms, or space in the expectation that there are seats, rooms, or space in the expectation that no showsno shows will bring the number of reservations actually will bring the number of reservations actually used below maximum occupancy.used below maximum occupancy.
Understays- Understays- Guests who leave before their anticipated Guests who leave before their anticipated date of departuredate of departure
Yield Management- Yield Management- The practice of adjusting prices up The practice of adjusting prices up or down in response to demand in order to control yield. or down in response to demand in order to control yield. This process is usually computerized. This process is usually computerized.
Rack Rate- Rack Rate- Highest rate category offered by a lodging Highest rate category offered by a lodging property.property.
Hubbart FormulaHubbart Formula
Helps managers set ratesHelps managers set rates
Operating expenses + Desired return on investment-Other IncomeOperating expenses + Desired return on investment-Other Income
______________________________________________________________________________________________________________
Projected room salesProjected room sales
==
Room RateRoom Rate