Chapter 2 - Classification of Hotels

Chapter 2

Classification of

Hotels

Chapter 2 – Classification of Hotels 1

Learning Objective

Type of Hotels

Heritage Hotels and Palaces

Types of Supplementary accommodation


Introduction, background and

Eligibility for classification

• Hotel is an important part of hospitality industry.

• It has now attained a much higher status in society

and demands high standards of work ethics and

efficiency from its employees.

• To ensure a certain level of standardisation in

products and services hotels globally are classified on

various parameters which can include the location,

facilities, affiliation inter alia.


Introduction, background and

Eligibility for classification

• The Star classification is provided by Hotel and

Restaurant Approval and Classification Committee

(HRACC), Department of Tourism in India.

• The classification can be applied by existing and well

as new hotels in a prescribed time frame.


Classification on the basis of Target

Markets

Business Hotels

1.caters primarily to business travellers

2.Usually located in the downtown or business districts

3.Guest amenities at business hotels include

complimentary newspapers, morning coffee, free

local telephone calls, break fast etc.

4.Access to business centre, Wi-Fi and fax machines

are provided to guests Chapter 2 – Classification of Hotels 5


Markets

Airport Hotels

1.Typically target business clientele, airline passengers

with overnight travel layovers or cancelled flights and

airline personnel

2.May offer free transport between hotel and airport

3.Provide meeting facilities for guests who travel to a

meeting by air and wish to minimize ground travel

4. Instead of charging guests by day basis, the guests

can also pay for their room by hourly basis Chapter 2 – Classification of Hotels 6


Markets Suite Hotels

1.Latest trend and the fastest growing segments in the

hotel industry

2.Guestroom with a living room and separate bed room

3.Generally have fewer and more limited public areas

4.Guests categories are professionals, accountants,

lawyers who look for work as well as entertain in an

area besides the bedroom


Classification on the basis of Target Markets

Extended Stay Hotels

1.Similar to suite hotels but usually offers kitchen as a

part of amenities

2.Relevant for travellers who want to stay for more than

a week

3.Travellers who do not want to depend on service of

the hotel

4.This hotels do not provide any F&B service or

laundry service

5.Considered as Home away from home Chapter 2 – Classification of Hotels 8


Apartment Hotels

1.Provide long term / near permanent accommodation

2.Guest makes a lease agreement with the hotel for

minimum of one month up to a year

3.Lease agreements are renewed on a yearly basis

4.Guest rooms include living room, bedroom, kitchen,

balcony etc

5.Housekeeping, laundry, telephone, restaurant and

lounge may be provided by some hotels Chapter 2 – Classification of Hotels 9


Markets

Resort Hotels

1.Usually located in the mountains, on an island

2.These hotels have recreational facilities, scenery,

golf, tennis, sailing and other entertainment facilities

3.Provide enjoyable and memorable guest experiences

that encourage guest to repeat the resort



Bed and Breakfast Hotels

1.Houses with rooms converted into overnight facilities

2.The size can be 20-30 guest rooms

3.The owner of B&B stays on the premises and is

responsible for serving breakfast to guest

4.On account of limited service the price for room is

very less in comparison to full service hotel


Classification on the basis of Target Markets Timeshare and Condominium Hotels

1.Guest who purchase the ownership of

accommodations for a specific period

2.Owners may also have the unit rented out by the

management company that operate the hotel

3.Units in condominium hotels only have one owner

instead of multiple owners, each for a limited amount

of time each year

4.An owners inform the management company if when

he / she wants to occupy the unit Chapter 2 – Classification of Hotels 12


Markets

Casino Hotels

1.Hotels with gambling facilities

2.Food and beverage operations in casino is luxurious

their functions is secondary to and supportive of

casino operations

3.Casino hotels attract guest by promoting the

gambling and other entertainments



Markets

Conference Centres

1.This hotels focus on meeting and conferences and

overnight accommodation for meeting attendees

2.Provide high quality audiovisual equipments,

business services, flexible seating arrangements

3.Hotels mostly located outside the metropolitan areas

4.Have facilities like golf, swimming pools, tennis

courts, fitness centres, spas



Convention centres

1.Larges in size compared to conference centres

2.Likely t have more than 1500 rooms

3.Hotels are huge and have sufficient number of guest

rooms to house all the attendees

4.Usually cater to convention market for state, regional,

national and international association


Classification on the basis of Levels of

Service

World class service

• Also called a luxury hotels

• Target top business executives, entertainment

celebrities, high ranking political parties etc.

• Provide upscale restaurants and lounges, concierge

services and also private dining facilities



Service

World class service

• Guest rooms are oversized, heated and plush bath

towels, large soap bars, shampoo, shower caps and

all amenities

• Housekeeping services are give two times a day

including turn-down service

• Guests are provided personalised services



Service

Mid-range service

• Appeal to the largest segment of the travelling public

• Does not provide elaborate service and have an

adequate staffing

• Also provide uniformed service, food and beverage

room service



Service

Mid-range service

• Property may offer a speciality restaurant, coffee

shop and lounge

• Typical guests are business people, individual

travellers and families

• Rates are lower than luxury hotels as they provide

fewer services, smaller rooms and a smaller range of

facilities and recreational activities



Service

Economy / Limited Service

1.Hotels provide clean, comfortable, safe, inexpensive

rooms and meet the basic need of guests

2.These hotels appeal primarily to budget minded

travellers

3.The cliental may include families with children,

travelling business people, back-pakers, vacationer’s

retirees


Classification on the basis of Ownership and

Affiliations

Independent Hotels

1.Do not have identifiable ownership or management

affiliation with other properties

2.Properties don’t have any relationship to another

hotel regarding policies, procedures marketing or

financial obligations

3.Advantage of individual property is autonomy

4.An independent hotel however does not get the

advantage of board advertising exposure or

management insight Chapter 2 – Classification of Hotels 21


Affiliations

Chain Hotels

1.Ownership usually imposes certain minimum

standards, rules, policies and procedures to restrict

affiliate activities

2.More centralise the organisation the stronger the

control over the individual property

3.Some chains have string control over the

architecture, management and standards of affiliate

properties


Classification on the basis of Ownership

and Affiliations

Time Share

• Also known as vacation ownership or holiday

ownership

• Properties are in resort like areas like hills, beaches,

forests

• Involves individuals who purchase the ownership of

accommodation for a specific week or weeks



and Affiliations

Time Share

• Guest chooses a peak season, semi peak season or

a lean season

• The owner can also rent out the unit through

management

• The owner can also exchange their resort with any

other resort either directly owned by the company or

through contract signed with any other company /

management by paying nominal fee Chapter 2 – Classification of Hotels 24


Affiliations

Condominium

• Similar to time share

• Developed on a joint ownership basis

• Owner has full right of an unit he has purchases



Affiliations

Condominium

• Owner can occupy or sell his unit independently but

required to follow the rules and regulations laid by

the management

• Management can help the owner renting out the

property

• The management earns a major portion by renting

out conference hall and from catering



and Affiliations

Management Contract

• Hotels may be owned by individual persons,

partnerships or companies, however operated by

Management Companies

• The contracts are generally on a long term basis



and Affiliations

Management Contract

• The management contract can be signed even

before the construction starts

• After paying management fees, operating expenses

owners keep the balance as profit



and Affiliations

Franchise

1.Owner operates as a member of the chain of hotels

under the franchise agreement

2.Utilises brand, goodwill and with fee some services

of marketing

3.Operating nature support from resources of a large

organisation available

4.E.g. Holiday Inn, Choice International Chapter 2 – Classification of Hotels 29


and Affiliations

Referral Groups

• Consists of independent hotels which have grouped

together for some common purpose

• Properties differ from each other however the quality

of service is sufficiently consistent

• The member hotels recommend guest to other

member hotels

• Referral groups also extend benefit of more

extensive reservation and expanded advertising

through pooled resources Chapter 2 – Classification of Hotels 30

Classification on the basis of Location

City Downtown / Commercial hotels

• Hotels are located in the heart of the city

• Hotels are more expensive than the suburban hotels

• Hotels are patronized by business men and high

income tourists

• Centrally located and at a convenient distance from

markets, airports



Suburban Hotels

• Hotels are located in suburb of cities

• Moderately priced

• Mostly medium, large or small size

• Normally patronizes by low budget tourists

• Usually writers, poets low budget tourists prefer to

stay at suburban hotels



Rotels

1.Hotels that rotate on wheels are called Rotels

2.Also called motels on wheels

3.Example could be luxurious train, fully AC and well

furnished with an attached restaurant and bar



Motels

1.Motels is a contraction of motor hotel

2. It a lodging that caters primarily to guests arriving by

automobiles

3.Motels are located in any setting, but are usually

found in suburban or roadside areas

4.Motels can be two story or low rise building located

near major highways

5.Motels may contain pool areas with shrubbery tree

and children play ground Chapter 2 – Classification of Hotels 34


Floatels

1.Hotel which floats on water is called floatels

2.House boats in Kashmir Dal lake could be an

example

3.Luxurious suites consisting of drawing room, dining

room, bed room etc

4.Guests are often offered cabins to stay and now a

days luxury ships are becoming popular for travelling

5.Floaters have all facilities similar to five star hotels Chapter 2 – Classification of Hotels 35


Chapter 2 – Classification of Hotels

Boatels

Luxury boats / yachts which ferry people from one

place to another

36

Heritage Hotels

1. Initiated by Government to boost tourisms

2.Consists of old buildings and palaces constructed

before 1935 that converted into hotels

Classification on the basis of Clientele


Boutique Hotels

1.Very small and very expensive hotels

2.Mainly cater to the elite class

3.Hotel is small but it may have number of restaurants

37

Classification on the basis of Clientele


All Suit Hotels

1.A new addition to the hotel industry

2.These suites provide living room, bedroom and

kitchenette

38

Classification on the basis of Size or

Number of Rooms


1.Small Hotels – 25 rooms or less

2.Average Hotels – 25 rooms to 90 rooms

3.Above average hotels – 80 rooms to 250 rooms

4.Large hotels – 250 rooms and above

39

Summary


• Hotel industry is growing on account of growth in

travel and tourism sector

• Understanding the classification of hotels provides

the prospective guests a view about the facilities and

services he/she can expect from the Hotel

• In addition to old one, new Hotels based on concept

of self help has emerged with limited services at

reasonable rentals

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Documents

Chapter 2 - Classification of Hotels