HTM130 Topic 3 The Lodging Industry
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- 1. THE LODGING INDUSTRY HTM130 Introduction to Hospitality and
Tourism Industry
- 2. Lodging Lodging: place to sleep for one or more nights
Accommodation: another word often used to mean a place to sleep
Lodging Industry: consists of businesses that prove overnight
accommodations. Lodging Property: business that provides overnight
accommodations Lodging businesses vary from expensive resort hotels
to budget motels Accommodations can be found to fit any price range
and level of service
- 3. Outline Hotel development and ownership Classification of
hotels and motels Trends in hotel development
- 4. HOTEL DEVELOPMENT THE LODGING INDUSTRY HTM130 Introduction
to Hospitality and Tourism Industry Test Book Page143 Hotel
development begins with a perceived opportunity when a person or
firm consider building a hotel
- 5. An Overview of the Process 1) Conceptualization Once the
preliminary development concept is clarified, ideas, goal,
objective and develop team will easily form 2) Feasibility Analysis
Study of the factors involved in opening and operating (such as
financial, investor expect repayment) a successful hotel 3)
Commitment Critical turning point for the project, secure funding
that cover more than cost construction expenses of operating until
hotel reach viability 4) Design and Construction Designed, built
and equipped according to recommendations of the feasibility study
and goal of developer. Preliminary marketing and personnel training
usually begins during this stage. 5) The Opening Final stage.
Project up and running by scheduled opening date, hotel staffs are
fully operational, ensuring hotel ready to serve guest for the
first day.
- 6. Once the preliminary development concept is clarified, the
ideas and goals can be formalized into concrete objectives. Name
Dcor/ ambiance No of Rooms Type of hotel Type of ownershipRoom rate
structure Concept Location
- 7. Is to determine whether the project is a feasible or capable
of being carried out successfully. Based on a detailed study of the
opening and operation factors. Success is measured financially,
because hotel investors expect repayment of, as well as invest on ,
the money they invested Will the proposed hotel generate enough
profit to meet the expectations of its investors? The study also
projects the hotels rates and occupancy level and estimates its
operating expenses. This stage is a critical turning point for the
project. The developers must secure funding and begin negotiations
with construction and management companies. Funding must cover more
than the cost of construction and the expense of operating until
the hotel reaches viable. Ways of controlling operating costs must
be decided during this phase in order to be included in the design
phase.
- 8. The actual design and construction of the hotel is now
begin. The project is designed, built and equipped according to the
recommendations of the feasibility study and the goals of the
developers. Management or franchise agreements are formalized
Preliminary marketing and personnel training usually begin during
this stage. The sales and marketing staffs are fully operational,
ensuring that the hotel will have guests from the first day. All
front- and back-of-the-house staff are trained and prepared to
welcome guests. Facility opens for business.
- 9. Choosing the Right Location 1) Airport Properties Originally
built to house airline flight crews and those travelers whose
flight were postponed, canceled, or delayed overnight. Now invented
to private sector nearby airport mostly with airport transfer 2)
Downtown Properties Located in major city area. Tend to have higher
occupancy rate on weekdays and lower occupancies on weekends. In
small city play an important role in social structure. 3) Suburban
Properties For travelers who wanted to quick access to the downtown
area for events but did not want to spend a night there. Owner
benefit from lower taxes and land costs. 4) Highway Motels Simple
design, provide free surface parking and recreational facilities
for business and leisure travelers. Public space and registration
areas may be separate from guest room. 5) Resort and Attractions
Located near particular attraction, ability attract guest and built
away from population center and transportation routes. Create
destination for one-stop vacationaing (exp: Penang-Batu
Feringhi)
- 10. Lots of factors contribute to the hotels potential success,
but the location is the most influential. This formula for success
is supported by studies showing that most guests rate proximity
high on their list of deciding factors when choosing a place to
stay. Lodging facilities may even be classified according to their
location, that is airport, downtown, suburban, highway, or resort.
Were originally built to house airline flight crews and those
travelers whose flight were postponed, canceled or delayed
overnight. Provides food and beverage services to passenger waiting
for flight together with banquet, meeting and convention
facilities. Usually offers quick and easy transportation to and
from the airport, ranging from underground moving sidewalks to
shuttle service.
- 11. Due to the limited availability of land in the inner city
and the high cost of developing in densely populated areas,
downtown hotels usually are high-rise structures Tend to have
higher average room rate than other types of hotels because of the
expense of real estate and of doing business in a city. Serving
predominantly business travelers and conventioneers. Higher
occupancy rate on weekdays and lower occupancies on weekends.
Normally offer flexible meeting, banquet space and limited
recreational facilities. Originally provided lodging for travelers
who wanted quick access to the downtown area, but who did not want
to spend the night there. May benefit from lower taxes and land
costs, they are frequently restricted by other regulations
including height and size-zoning guidelines. These regulations
limit most suburban hotels to mid-rise with two hundred to five
hundred rooms.
- 12. Developed with the growth of transportation. Serving
transient guests who stay an average of one night, facilities are
generally very simple one or two storey, exterior corridor
structure with less than 200 rooms. Provide free surface parking
and outdoor or enclosed recreational facilities for both business
and leisure travelers. Located near a particular attraction or are
attractions in and of themselves. Location is essential to their
success. Often built away from population centers and
transportation routes. Normally resort must compensate for any lack
of infrastructure. Roads and utility systems may need to be
developed, some resort even provide employee housing and off-duty
employee recreational facilities. Some resorts were originally
designed for the upper-middle class and very rich, creating
destinations for one-stop vacationing. To survive, some resorts
provide meeting and banquet facilities in order to stay profitable
all year round.
- 13. Accessing Feasibility Feasibility Study SECTION INFORMATION
MARKET AREA Geographic and economic: available market and
workforce, channel of distributions Who live in the area? Does this
area already attract the desired market segment? Can this area
support a new facility? COMPETITION Competitors: Competitions
concept, currents operations, and future goals SITE Geographic and
legal: infrastructure, zoning regulations, environmental measures -
Hotel around should be safe DEMAND Target market and demographics:
market share, trends, pricing strategies FACILITIES AND SERVICES
Hotel type and design: layout, construction, efficiency and cost of
equipment, availability and cost of raw materials FINANCIAL
ESTIMATES Economic feasibility: proposed budget, start-up costs,
projected revenues
- 14. Fiscal Commitment to the New Hotel 1) Finding Investor
Investment practices change with economic tide. Management contract
increasingly popular. Many owners can earn fair return by renovate
the property because value increased, renovate easy to get
potential buyer as well 2) Determining Cost Develop and Preopening
Costs - Examining type of expenses during development helps explain
the cash outlays involved in development - Money must set : Debt
Service and Preopening Service Operating Costs Hotels need a
constant supply of working capital beyond the development phase.
Often the most significant expense in hotel operation involves
wages, salaries and employee benefits. 3) Controlling Costs
(eliminate unnecessary cost) Energy Efficiency - Efficiency
Engineering Systems - Latest energy-efficient equipment Security
and Loss Prevention - Theft raise cost of operating a hotel
property - If affect guest, can irrevocably (tidak boleh ditarik
balik) damage a hotels reputation
- 15. Once financing for construction has been obtain and all
involved parties have committed to the project, construction
planning begins. Owners and managers must be involved in this
planning process because they are most familiar with guests needs,
and because they will be the ones charged with making the facility
profitable once it opens. The hotels design must satisfy two
essential needs; ___To provide guests with a comfortable, safe
environment in which they can enjoy their stay, and ___To allow
hotel staff to keep the hotel operating efficiently to meet the
needs of those guests.
- 16. Design of the New Hotel 1) Basic Lodging Design Front of
the House - All area the guest will contact, all guest can see -
Depend upon the smooth operation of back of the house - Should be
calm, collected and efficient satisfy guests desire - Affect guest
impression of a particular area Back of the House - Important part
of the hotels structure, support areas - Without revealing its
working to the guests - Exp: Receiving area, housekeeping, storage,
Laundry, Kitchen and etc Guest Room Floor plans - Architects
charges with the task of designing an original facility with the
maximum possible guest room - Also determine how to make the
corridor reach corner room and how many guest room will surround
the core on each floor
- 17. Front Of The House Back Of The House Comprises all the
areas the guests will contact, including the lobby, corridors,
elevators, guest rooms, restaurants, bars, and restrooms. It must
be designed to sell the hotel to potential customers. The
architecture of the lobby may grab their initial interest, but its
the guest room that keeps them coming back Other areas in the front
of the house must be just as well planned. Hotel meeting facilities
must also be carefully design to meet the conventioneers needs for
audiovisual equipment, large exhibition space and variety of
meeting rooms. These are the support areas. (eg; kitchen,
housekeeping areas, laundry and etc.) The front of the house is
completely dependent upon the smooth operation of the back of the
house. Efficiency and control are the main objectives for the back
of the house. Architects must plan for the smooth operation of the
hotel without revealing its working to the guest. The plan must
also enable employees to enter and exit the building as well as to
perform their work out of sight of hotel guests.
- 18. Front of the House
- 19. Back of the House
- 20. Design of the New Hotel 2) Accessibility Accessibility
Design - Feel independent: Easy-to-turn door handles - Sense of
Security : Guest Room Lock System - Safety: essential for guest and
employee (nonslip bathing facilities, fire-safety equipment and
etc) Disability Act - Wheelchair-accessible swimming pools and
spas, special design restroom with handrest 3) Ambiance
- 21. The facility must be accessible both in term of its
location, and it terms of the facility design, which include
security, independence, safety and comfort. All guests want to feel
a sense of security when staying in a hotel, they will also
ultimately stay where they feel most secure. Guests also want to
feel independent. Simple amenities like easy-to-turn door handles
and lowered light switches may help youngsters and guests with
limited mobility operate more independently. Safety, a third design
consideration, is essential for both guests and employees,
providing a well maintained property aid in the safety of all
persons in the hotel. Finally, all guests expect to be comfortable.
Attaining that comfort is really a combination of design elements
and hospitality services, but care must be taken to ensure that all
guests are extended such comforts equally.
- 22. Ambiance is the complete impression a lodging facility
gives to its guests. When planning a hotel or its renovation,
designers create an image that carries out the initial
conceptualization. From the choice of building materials to the
color of the carpeting or tile. This image will become the theme of
the entire property. Ambiance tells guests whether they are in an
economy or luxury property; it makes them feel at home or
uncomfortably in new surroundings; and it can make the difference
between whether a guest returns to the property or stays somewhere
else.
- 23. HOTEL OWNERSHIP THE LODGING INDUSTRY HTM130 Introduction to
Hospitality and Tourism Industry Test Book Page121
- 24. Hotel Ownership Independently owned and operated These can
be independent hotels,with no affiliation, that are being managed
by the -owners of the properties, completely responsibility for the
hotels success or failure Advantages Make use of their first hand
knowledge to attract guest, obtain investor, garner community
support for new ventures and negotiate discounts from supplier.
Operating freedom owner implement their own idea Disadvantages
Confront the most difficult financial challenges, independent own
faced highest failure rate during recreation. Develop all of their
own operations systems, succeed or fail based in the success of
these system.
- 25. Hotel Ownership Chain Ownership 1) Parent Company-Owned and
Operated by Brand Name 2) Franchise licensed by investors and
operated by management who contract to use the name and system of a
brand 3) Management contract owned by an investor or investor and
operated in contract by brand name
- 26. Company-owned and Operated Not franchiser or under
management contract, give hotel more consistency chain-wide than
other form of ownership. Shares many of the advantage and
disadvantage of independents ownership Hotel Ownership - Chain
Ownership
- 27. Management contract Management contracts are hotel
management companies which operate properties owned by other
entities. In some cases, the hotel owners may arrange to run their
properties through a management contract with a company that
specialises in managing hotels. The reason for this is that the
owner may not -Have the necessary expertise -Desire to become
involved in the operation of the hotel Benefits for the hotel
management company -Little or no up-front financing or equity
involved -Manage the property for the contract period such as five,
ten or twenty years -Receive a management fee during the contract
period Hotel Ownership - Chain Ownership
- 28. Franchise-Licensed Some investors prefer to use the
franchising concept in running the hotel.Franchising in the
hospitality industry is a concept that: Allows interested investors
to use a companys (the franchisor) name and business format Is made
up of properties where the franchisees agree to run the hotel in
accordance with the strict guidelines set by the franchisor Allows
a company to expand more rapidly by using others capital Hotel
Ownership - Chain Ownership
- 29. Benefits for the franchisee: Obtain from the franchisor the
expertise in doing business such as site selection, planning,
pre-opening training, operations manuals, information
management,central reservation system, field support, quality
control, purchasing, advertising, marketing, new products and
concepts The franchisee has complete control and responsibility
over the daily operation of the property In return, the franchisor
receives a joining fee and an ongoing fee from the franchisee.
Hotel Ownership - Chain Ownership
- 30. CLASSIFICATION OF HOTELS AND MOTELS THE LODGING INDUSTRY
HTM130 Introduction to Hospitality and Tourism Industry Test Book
Page111
- 31. 35 Classification of hotels and motels Hotel Rating
Services Rating Services AAA American Automobile Association
Diamond Award Mobil Travel Guide Five Star Award
- 32. 36 Figure 4-5 Hotel Rating Guide by Mobil Travel Guide
- 33. Classification of hotels Criteria Location: e.g. city
centre hotels, suburban hotels, airport hotels and highway
hotels/motels Function: e.g. commercial hotels and convention
hotels Market segment: e.g. resorts, health spas,
timeshares/vacation ownership and casino hotels Distinctiveness of
property: e.g. all-suite hotels, boutique hotels, extended- stay
hotels, historic conversions and bed and breakfast inns Price and
staff/room ratio Size: e.g. under 150 rooms, 151-300 rooms, 301-600
rooms, more than 600 rooms Rating (grading) : e.g. one-star to
five-star or one-diamond to five-diamond
- 34. Descriptive labels(diskripsi tanda) 38 Hotel and motels can
be found almost anywhere Hotels Most famous type of lodging Have
> 2 stories. Guest room have bed, bath, phone and TV. Located
near business district, travel destinations and airport
- 35. 39 Motels Fewer amenities and less expensive to build and
operate than downtown hotels Lower rate, basic accommodation,
roadway locations and lack of central lobby Less formal than hotels
All suite-hotels Rent only suites combine living space with kitchen
Small lobbies and no public meetings room, and some do not offer
restaurant and bar But now, have hotels reintroduced the public
areas and limited food services
- 36. Peninsula Residence All Suite Hotel, KL Chapter 4 - The
Hotel Business 40
- 37. Chapter 4 - The Hotel Business 41
- 38. Chapter 4 - The Hotel Business 42 Convention hotels Provide
meeting and banquet facilities for large groups Need a large
lobbies High percentage of double-occupancy rooms and emphasize
F&B services May offer concierge floor Other lodging types
Hostels Bed and breakfast Resorts Spas Casino hotels
- 39. Chapter 4 - The Hotel Business 43
- 40. Chapter 4 - The Hotel Business 44
- 41. Chapter 4 - The Hotel Business 45
- 42. 46 Levels of service Luxury hotels and resorts Descendants
of a grand hotels, featuring expensive, lavishly decorated public
areas and the highest level of services Luxury resorts offer the
finest entertainment and recreation facilities Eg. Four Season,
Ritz-Carlton, Trump Plaza,NY
- 43. Chapter 4 - The Hotel Business 47
- 44. Full service properties Eg. Hilton, Hyatt, Westin and
Marriot Offer wide range of services in lower rate than luxury
hotels Offer clean, well-decorated with meeting and restaurant
facilities, a limited room service menu and variety of recreational
activities Have large and attractive public areas Some all-suite
hotel and extended-stay hotels with good-sized public areas also
fit into this category 48
- 45. Chapter 4 - The Hotel Business 49
- 46. Chapter 4 - The Hotel Business 50
- 47. Limited service properties Eg. Days Inn, Hampton Inn,
Quality Suites & Inn Simple, clean rooms with telephone, free
cable TV, pools and adjacent restaurants Staff services limited but
offer extra few amenities : shampoo and lotion The remaining
all-suite hotel may fit this category because of : limited services
and amenities, and small public areas 51
- 48. Chapter 4 - The Hotel Business 52
- 49. Economy properties Provide basic bed and bath facilities
Focus on more values for the dollars with clean and low-priced
lodging Did not offer meeting and recreational facilities or
F&B Limited staff : Front office, security, housekeeping Eg.
Econo Lodge, Motel 6 and Daystop 53
- 50. Chapter 4 - The Hotel Business 54
- 51. Chapter 4 - The Hotel Business 55
- 52. 56 Hotels by Price Segment (market price levels) Budget -
$29-$39 Economy - $40 - $60 Mid-price - $60 - $100 All-suites - $95
- $175 Up scale - $100 - $200 Luxury - $140 - $450
- 53. 57 City Center Hotels Public transportation available for
business or leisure Could be luxury, midscale, business, suites
economy or residential Range of accommodations and services
Typically have a signature restaurant, coffee shop etc Were
constructed in wave, stimulated by govt. regulation, investors
develop hotel when the economic climate is right Eg. St. Regis
Hotel, NY city centre luxury hotel
- 54. 58
- 55. 59 Resorts Originally began due to rail travel Became a
part of pleasure experience Before this seasonal, but because of
improvement in air travel / automobile, it become year-round
activity Eg. Greenbrier in West Virginia and The Ritz Carlton
Kapalua in Maui, Hawaii
- 56. Chapter 4 - The Hotel Business 60
- 57. Chapter 4 - The Hotel Business 61
- 58. Chapter 4 - The Hotel Business 62
- 59. 63 More on Resorts Captured Clientele Food service is
unique, vary menu to cater the guest Resorts has diversified their
marketing mix by include: MICE Spas Adventure and Eco-tourism Need
attentive, well trained staff Resorts benefits : guest more relax,
staff will enables to enjoy better quality life, returning guest
tend to treat like a friends
- 60. Chapter 4 - The Hotel Business 64
- 61. Chapter 4 - The Hotel Business 65
- 62. Chapter 4 - The Hotel Business 66
- 63. 67 Airport Hotels High occupancy due to location Guest mix
: Business, group and leisure travelers Full service 200-600 rooms
Convenient location Airport shuttle service to go town etc
Convenient location, economical price, easy and less costly
transportation Eg. Pan Pasific KLIA
- 64. Chapter 4 - The Hotel Business 68
- 65. 69 Casinos hotels Heavy growth segment Low room rates
Subsidized food and beverage Themes are popular 500 plus guest
rooms Variety of food operations Contains a gaming room
- 66. 70Caesars Palace Hotel Casino
- 67. 71 Venetian Hotel Casino. LV
- 68. 72 Convention Hotels Meet the needs of large groups 500
plus rooms Larger public areas to accommodate greater public demand
Banquet areas within and around the hotel High percentage of double
occupancy, rooms have double queen-sized beds Full-service oriented
Eg. Sheraton Doha Resort & Convention Hotel
- 69. Chapter 4 - The Hotel Business 73
- 70. 74 Full-Service Hotels Typically Business Oriented Multiple
food and beverage outlets Meeting and convention services Chain
representation Doubletree www.doubletreehotels.com Sheraton
www.sheraton.com
- 71. 75 Economy/Budget Hotels Represents 12 percent of total
hotel rooms Accomplished 37 percent of industry growth Average room
rate of $48.68 However, profit revenue is slow with an annual rate
of 1 percent Also considered budget hotels Clean rooms Reasonably
sized and furnished Continental breakfast
- 72. 76 All-Suite Cater to guests for an extended period
Reduction in rate based on length of stay More space than typical
hotel Examples Embassy Suites www.embassy-suites.com
- 73. 77 Bed and Breakfasts Began in Europe and started as
overnight lodging in a private home A home away from home, prices
$30 - $300 Accommodation with an owner who lives on premises
Maintains a few rooms Offers breakfast Personable and quick
service
- 74. 78 Vertical Integration Lodging companies meeting the needs
of several types of guests based on price, facilities and amenities
Choice hotels which have several chains that meet its diverse
clientele Luxury - Clarion Mid-scale - Quality Inn/Suites Budget -
Comfort Inn, Rodeway Inn Economy - Sleep Inn
www.hotelchoice.com
- 75. 79 Marketing Consortiums Also called referral organizations
Numerous independent properties unite to compete with the marketing
power of chain operations Similar benefits as franchises, at a
lower cost Provides incentives for clients
- 76. 80 The Best Hotels Some previous winners: Oriental Hotel in
Bangkok, Thailand Regent of Hong Kong Bell-Air of Los Angeles
Largest hotel Venetian Hotel, Las Vegas with 6172 rooms opened in
1999
- 77. Oriental Hotel, Bangkok 81
- 78. Chapter 4 - The Hotel Business 82
- 79. 83 Unusual Hotels Ice Hotel in Swedish Lapland The Treetops
Hotel in Kenya Underwater Hotel in Australia Capsule Hotel in Japan
The Burj Al Arab in Dubai
- 80. Chapter 4 - The Hotel Business 84
- 81. Chapter 4 - The Hotel Business 85
- 82. Inside Capsule Hotel, Osaka 86
- 83. Chapter 4 - The Hotel Business 87
- 84. Classification of hotels Descriptive Level Luxury hotels
Hotel, Congress hotel, All-Suite-Hotel Accomodation, breakfast,
food and beverages offered International Standard, luxurious,
modern Greetings of guests in front of the house High level of
technical and personal services Meeting point, modern communication
equipment Outside Germany often big shopping center included Price
high First Class Hotel Convention hotel Accomodation, breakfast,
food and beverages offered High Standard of comfort Good level of
technical and personal services Price medium to high Mostly large
number of beds, chain hotels 88
- 85. Classification of hotels Descriptive Level Pensions, Hotel
pensions Accomodation and breakfast for longer stay guests, fixed
menu food at specific times Simple, no special comfort, often close
to spa institutions Without special services Prices dependent on
length of stay Rural (Pedalaman) hotel Mainly restaurant, few beds
mainly for restaurant guests Simple, rural, no special comfort
Often family run with own butcher or fish farm Price low, except
Star-restaurant places Motels Offer fewer amenities and less
expensive to build and operate than downtown hotel Lower rate,
basic accommodations, roadway locations and lack of central lobby
Less formal than Hotel 89
- 86. Classification of hotels Level of Service Luxury hotels and
resorts Offer finest accommodation and cuisine money can buy. Grand
hotel featuring expensive, lavishly decorated public areas and
highest level of customer service. Full range of amenities, private
Jacuzzi Full Service Properties Offer clean, well-decorated hotels
with meeting and restaurant facilities, limited room service menu
and variety recreation activities. Good size public area. Exp:
Hilton, Marriott, Hyatt Limited Service Properties Offer clean room
with a telephone, free cable television, swimming pools and
restaurant. Small public area. Limited service and amenities other
than housekeeping. Economy Properties Offer basic bed and bath
facilities, focus on more value for a dollar with clean and
low-priced lodging. Did not offer meeting and recreational
facilities or F&B services. Staff was limited
- 87. TRENDS IN HOTEL DEVELOPMENT THE LODGING INDUSTRY HTM130
Introduction to Hospitality and Tourism Industry
- 88. Trends influencing the hospitality industry Demand for
leisure travel services will continue to outpace that for business
travel There are now significantly more leisure travelers filling
airline seats, checking into hotel rooms, and consuming other
travel services than business travelers, and this gap will
grow
- 89. Trends influencing the hospitality industry More leisure
travelers will select cruises and timeshares as alternatives to
vacations that include conventional lodging The popularity of
cruising will continue to grow, driven principally by the
construction and arrival of magnificent, new floating "resorts"
(and remarkably attractive pricing), while timeshares will be in
big demand as more savvy travelers discover both the value and
flexibility of "owning" vacation time that reflects their
lifestyles and travel habits
- 90. Trends influencing the hospitality industry Activities that
promote stress reduction will gain in popularity Growing interest
in "adventure" travel notwithstanding, the pursuit of stress
reduction will remain the number one motivator for the one-half of
all active leisure travelers who now feel they "dont have enough
vacation time." This is likely to translate into growing patronage
of both amenity and destination spas (by both women and men), as
well as the growth of amenity spas in urban hotels that cater to
business travelers and meeting attendees
- 91. Trends influencing the hospitality industry Meetings and
conventions will drive the recovery of demand for business travel
services Individual business travelers will continue to seek ways
to do business without traveling, while demand for travel services
from meeting and convention attendees will continue to grow
- 92. Trends influencing the hospitality industry Air travel will
remain remarkably affordable Hard to believe given the
unpredictable nature of the cost of jet fuel and the fact that half
of all domestic airline seats are now operated by bankrupt
carriers, yet unprecedented competition brought about by
transparent pricing for "undifferentiated" brands will insure fares
remain low relative to the escalating cost of other travel
services
- 93. Trends influencing the hospitality industry Lodging rates
will rise Hotel room rates will continue to escalate as operators
manipulate yield to capitalize on growing demand. "Upscale" and
"Luxury" operators are likely to be the biggest beneficiaries of
this trend as consumers who traded up in the go-go '90s begin to
indulge once again
- 94. Trends influencing the hospitality industry Consumers'
utilization of the Internet will continue to reinvent the
distribution and sale of travel services Although the actual
percentage of business and leisure travelers who use the Internet
to plan some aspect of travel is expected to remain flat if not
decline, the percentage who go online to make reservations will
continue to grow
- 95. Trends influencing the hospitality industry Transparent
pricing will underscore the urgent need for brand clarity
Techno-savvy consumers can now compare prices for airline seats,
hotel rooms, car rentals, cruises, even complete vacations with
just a couple of clicks, so the question arises: who will get the
sale? The answer will be determined by the "value" ascribed to the
proposed transaction which, in turn, will depend on the "clarity"
of the brands under consideration. Those that stand for something
relevant to the consumer will ascend to the top of the list.
- 96. Trends Affecting the Future of the Hospitality Industry
-Increasing competition -Emphasis on service -Customers growing
value consciousness -Changes in marketing and management made
possible by technology -Increased responsibility for employees and
managers through employment -Greater diversity of the workforce
-Customers concerns with security -Consumers and governments
concern with sanitation