The Hotel Business: Classification and Development

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The Hotel Business Classification and Development
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Ways to Classify Hotels

• Location
• Target Markets
• Types of services
  offered
• Market price levels

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Location

• Center City
• Freeway Hotels
• Airport
• Resorts
• All Suites
• Casinos
• target market, services, pricing

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City Center Hotels

• Traveling public for business or leisure
• Range of accommodations and services
• Typically have a signature restaurant

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Freeway Hotels and Motels

• Prominent in the 1950s
• Easy access to roadways
• Park outside the room entrance
• Example Motel 6
• http//www.motel6.com

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Airport Hotels

• High occupancy due to location
• Business, group and leisure travelers
• Full service
• 200-600 rooms

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Resort Hotels

• Captured clientele
• Food service is unique
• Diversified marketing mix
• children
• groups
• ecotourism

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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
• http//www.embassy-suites.com

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Casinos

• Heavy growth segment
• Low room rates
• Subsidized food and beverage
• Themes are popular
• 500 guest rooms plus
• Variety of food operations
• Contains a gaming room

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Level of ServiceEconomy

• Also considered budget hotels
• Average rate is 30 to 50 per night
• Clean rooms
• Continental breakfast

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Level of ServiceFull Service

• Typically Business oriented
• Multiple food beverage outlets
• Meeting and convention services
• Chain representation
• Doubletree
• http//www.doubletreehotels.com
• Sheraton
• http//www.sheraton.com

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Levels of Service Luxury

• Finest of accommodations
• Concierge
• 24 hour room service
• Examples
• Four Seasons
• http//www.fshr.com
• Ritz Carlton
• http//www.ritzcarlton.com

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Vacation Ownership

• Fastest growing segment of travel industry
• Time share
• Vacation club
• 3 million households own vacation intervals at
  4500 resorts in 81 countries
• Yearly maintenance fees
• Fixed or floating times
• Example http//www.rci.com/home.html

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Trends in Lodging

• Safety and security
• Technology
• New management
• Globalization
• Consolidation

• Vertical Integration
• Rapid growth in vacation ownership
• Increase in spas
• Gaming

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Hotel Integration

• Vertical
• Lodging companies meeting the needs of several
  types of guests based on price,
  facilities/amenities
• Example Choice hotels
• http//www.hotelchoice.com
• Horizontal
• Lodging companies meeting the needs of travelers
  by offering other traveling services
• Example Cendant

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