The Lodging Industry

1
The Lodging Industry
2
Understanding Lodging

• The lodging industry in the United States has
  always been strongly influenced by changes in
  transportation.

3
Mid-1600s

• Stage coach routes established
• Coaching inns became popular resting places for
  travelers
• Expected a bed and a meal for the evening

4
1794-1828

• 1794 City Hotel in New York City opens
• The first building in the US designed
  specifically as a hotel.
• 1828 The Tremont House, first grand hotel, was
  built in Boston.
• First hotel to offer private rooms with locking
  doors.

5
The Railroad

• Inns, taverns and foodservice facilities located
  near railway stations began to grow.
• Famous resorts because of the railway include
  Hotel del Coronado near San Diego and the
  Greenbrair Resort in West Virginia. Yellowstone
  was also a railway resort.

6
Conrad Hilton

• A banker in New Mexico purchased his first hotel
  around 1900. It was in Cisco Texas.
• This began his chain of hotels.
• Other hotels around this time Ritz Carlton in
  Boston and the Plaza in New York City.

7
1950s

• Increased availability and popularity of the
  automobile and a new interstate freeway system
  made cross country vacations a popular option.
• Motels sprang up along highways offering
  travelers a place to bathe, sleep and eat.

8
The Airline Industry

• 1958 commercial airlines became popular.
• Builders moved toward airports for hotels and
  restaurants.

9
Lodging Operations Organization

• Front of the house employees who have direct
  contact to the public
• Back of the house supporting operations, behind
  the scenes
• OR
• Administrative Departments Manage business
  (accounting, human resources, training,
  marketing, sales)
• Service Departments responsible for serving
  guests directly

10
Administrative Departments

• General Manager (GM)
• Accounting and Financial Management (Controller)
• Human Resources
• Marketing and Sales

11
Service Departments

• Front Office
• Housekeeping
• Engineering and Facility Maintenance
• Security
• Food and Beverage (F B)

12
Leisure Travelers

• On vacation
• Shopping, fine dinning, sightseeing, sports
  events, relax
• May provide activities for children, on-site
  recreation or health facilities

13
Business Travelers

• Looking for well lit work spaces, telephones,
  modems, copiers, fax machines.
• Meeting facilities
• 24 hour service - valet parking, secure lodging

14
Amenities

• Restaurants
• Parking Garages
• Boutiques
• Barber shops
• Dry Cleaners
• Florists
• Swimming pools
• Room service

• Cable Television
• Pay per view
• Bathrobes
• Gift shops
• Kitchens
• Computer modems
• Spa
• Recreational activities

15
Types of Properties

• Full Service
• Luxury
• Economy
• Mid-priced
• All-suite
• Resorts
• Bed and Breakfast

16
Terms to Know

• Folio
• CRS Central Reservation System
• Room Inventory
• Block
• Rooms Forecast
• No-Shows
• Overbook
• Understays
• Yield Management
• Rack Rate

17
Hubbart Formula

• Helps managers set rates
• Operating expenses Desired return on
  investment-Other Income
• __________________________________________________
  _____
• Projected room sales
• Room Rate