week 6

Accommodation Sector

Objectives

  • To determine the importance of accommodation in the hospitality industry.

  • To identify different types of accommodation using examples.

  • To discuss the dimensions of the accommodation sector.

Introduction

  • Accommodation is a vital sector of the hospitality industry.

  • Important economic contributor:
      - Approximately 33% of total tourist expenditure is allocated to accommodation services.

  • Various types of accommodation meet diverse guest needs during their travels.

Definition of Accommodation

  • Accommodation includes any premises, temporary or permanent, other than domestic dwellings, where shelter and facilities are provided for public use.

  • Examples include:
      - International conference complexes
      - Marquees
      - Prisons
      - Large shopping complexes

Dimensions of the Accommodation Sector

  • Demand characteristics:
      - Demand is highly volatile, fluctuating on a seasonal and weekly basis.

  • Accommodation serves as a catalyst for additional sales opportunities within tourism and hospitality, e.g.:
      - Casinos
      - Golfing

  • Complexity in pricing:
      - Pricing structures include room rates, discounts, group bookings, reservations, and corporate contracts.

Classification/Typologies of Accommodation

  • Classification criteria for accommodation types include:
      - Size
      - Affiliation and ownership
      - Level of Service
      - Market segmentation
      - Quality
      - Facilities and services available

Market Segmentation/Target Market Types

  • Different target markets include:
      - Commercial / Business
      - Extended Stay
      - Resort
      - Bed and Breakfast (B&B)
      - Timeshare
      - Casino
      - Conference/Convention Centers

Level of Service

  • Classification by level of guest service:

  • Servicing levels vary regardless of hotel size or type.

World-Class Service

  • Target clientele:
      - Top business executives
      - Entertainment celebrities
      - High-ranking political figures
      - Wealthy clientele

  • Features of world-class hotels:
      - Upscale restaurants and lounges
      - Exquisite décor
      - Concierge service
      - Opulent meeting and private dining facilities
      - Luxurious guestroom amenities (e.g., oversized bath towels, large soaps, shampoo, expensive furnishings)
      - Focus on personalized guest services with a high staff-to-guest ratio
      - Executive floors with enhanced guest services available.

Mid-Range Service

  • Appeals to the largest segment of travelers, providing modest services and facilities.

  • Typical guests include businesspeople, individual travelers, and families.

  • Generally includes small conference and meeting rooms.

Economy/Limited Service

  • Represents a growing segment in the hospitality industry.

  • Features:
      - Clean, comfortable, and inexpensive rooms.
      - Targets budget-minded travelers looking for minimal amenities.

  • Typical guests: families with children, coach tour groups, retirees, convention groups.

  • Promotional efforts for quality-assured accommodations include marketing activities, websites, and PR initiatives.

Rating Systems/Quality

  • Common symbols used in hotel ratings:
      - Stars (common)
      - Diamonds (alternative)

  • Important to find which hotels have diamond and star ratings.

Key Areas for Hotel Star Rating Inspection/Quality Assessment

  • Assessment categories include:
      - Cleanliness
      - Bedrooms
      - Bathrooms
      - Service & Efficiency
      - Food Quality
      - Hospitality & Friendliness
      - Amenities provided

Type of Ownership & Affiliation

Independent Hotels

  • Characteristics:
      - No affiliations with other hotels
      - Unique advantage: autonomy

  • Flexibility allows for quick adaptation to market changes.

  • Drawbacks include limited advertising exposure and economic disadvantages compared to chain hotels.

Chain Ownership

  • Characteristics:
      - Imposes minimum standards and policies.
      - More centralized control typically leads to stronger governance of individual properties.

  • Types of chains:
      - Management Contract: Agreement between property owner and professional management company; owners retain financial responsibility with management receiving fees.
      - Franchising: Grants franchisees the right to operate under a brand established by a franchisor, adhering to set patterns and operational formats.
      - Referral Groups (Consortia): Consists of independent hotels cooperating for shared purposes, maintaining quality consistency without uniformity in services.

International and Hotel Restaurant Association – Star Classification

  • Classification details for hotels are as follows:
      - 1-Star Hotel: Limited amenities/services; maintained cleanliness.
      - 2-Star Hotel: Offers good accommodation with equipped bedrooms (telephone, private bathroom).
      - 3-Star Hotel: More spacious with high-class furnishings, offers bars or lounges.
      - 4-Star Hotel: Comfortable with excellent cuisine and amenities (room service, etc.).
      - 5-Star Hotel: Most luxurious with the widest range of services, including pools and fitness facilities.

UK Accommodation Classification

  • Hotel: Formal accommodation usually with 6 or more guest bedrooms, often exceeding 20.

  • Country House Hotel: Emphasizes tranquility, located in rural or semi-rural areas.

  • Small Hotel: Limited to a maximum of 20 bedrooms, often personally managed.

  • Town House Hotel: Unique style, up to 50 rooms, high staff-to-guest ratio, limited public areas.

  • Metro Hotel: Town/city hotel without dinner service, close to various dining options.

Guest Accommodation Types

Types of Guest Accommodation

  • Bed and Breakfast (B&B): Private house accommodation with up to six guests, operated personally by the owner.

  • Guest House: Commercial operation for more than six guests.

  • Farmhouse: B&B or guest house on working farms.

  • Inn: Licensed establishment providing food and drink to residents and non-residents.

  • Restaurant with Rooms: Destination dining combined with limited overnight accommodation.

Self-Catering and Specialized Accommodation

  • Self Catering: Fully equipped for guests to prepare their meals.

  • Timeshare: Ownership model for shared vacation stays.

  • Serviced Apartment: Fully furnished apartments with services.

  • Holiday Village: Accommodations with recreational facilities.

  • Hostel: Shared accommodations, often with bunk beds; caters to individuals and groups.

Unique Accommodation

  • Camping Barn: Simple rural accommodations; self-catering required.

  • Bunkhouse: Rural accommodations; suited for groups or individuals, basic facilities available.

Trends in Accommodation

  • Current investment trends in hoteliers involve redesigning properties to meet market demands.

  • Growth in online booking systems and mobile booking usage continues to increase.

  • Demand and average rates are rising in various markets.

  • Distribution channel management significantly influences pricing strategies.

  • Hotels are increasing marketing budgets to capture greater market share.

  • Social media influences customer relations and feedback (reviews via TripAdvisor, Facebook, etc.).

Definition of a Hotel

  • An establishment primarily providing lodging facilities to the public, offering:
      - Food and Beverage (F&B) services
      - Room attendant (housekeeping) services
      - Concierge
      - Porter services
      - Laundry/dry cleaning services
      - Use of furniture and fixtures available for guests.

Top 10 International Hotel Groups (2020)

  • 1. Marriott International: 1,348,532 total rooms, 7,163 hotels.

  • 2. Jin Jiang International Holdings Co. Ltd.: 1,081,230 rooms, 10,020 hotels.

  • 3. Oyo Rooms: 1,054,000 rooms, 45,600 hotels.

  • 4. Hilton Worldwide Holdings: 971,780 rooms, 6,110 hotels.

  • 5. IHG (InterContinental Hotels Group): 883,563 rooms, 5,903 hotels.

  • 6. Wyndham Hotels & Resorts: 831,025 rooms, 9,280 hotels.

  • 7. Accor: 739,537 rooms, 5,036 hotels.

  • 8. Choice Hotels International: 590,897 rooms, 7,153 hotels.

  • 9. Huazhu Group Ltd.: 536,876 rooms, 5,618 hotels.

Accommodation Management in Hospitality

  • Management includes:
      - Overseeing the accommodation product.
      - Identifying and controlling resources:
        - Human resources
        - Equipment and materials
        - Energy
        - Financial resources
        - Time management

Conclusion

  • The importance of accommodation within the hospitality industry cannot be overstated, showcasing diverse types and the sector's overall dimensions.

References

  • Andrews, S. (2008). Hotel Front Office. New Delhi: McGraw-Hill Companies.

  • Baker, S., Bradley, P., & Huyton, J. (2001). Principles of Hotel Front Office Operations.

  • Bardi, A. J. (2010). Hotel Front Office Management. John Wiley and Sons.

  • Kasavana, M. L. (2013). Managing Front Office Operations. American Hotel and Lodging Educational Institute, Pearson Education.

Tutorial Group Work

  • Investigate how hotel ratings are conducted in Botswana using the Accommodation directory from the Tourist Information Centre.

  • Discuss examples based on findings and contribute to discussions regarding international hotel ratings, including location specifics.