Chapter 5 ITT

Industry of Hospitality

  • The hospitality industry encompasses various key tourist suppliers, broadly categorized into five main sections:

    • Transport

    • Accommodations

    • Nonresidential Venues

    • Attractions

    • Cruises

Accommodations

  • Definition: Services that provide rooms to guests, typically including housekeeping, food, and other amenities.

  • Service Accommodations: Hotels and motels that provide services like food and housekeeping. Example: A full-service hotel with on-site dining.

  • Non-Service Accommodations: Facilities where guests must supply their own needs (self-catering). Example: Apartment buildings used as Airbnbs (like Iowa State University's campus apartments).

    • Guests have full apartment access but must prepare their own food; only minimal services are available.

  • Other accommodation types include:

    • Guest Houses: Smaller, more personal accommodations.

    • Farmhouses: Increasingly popular for lodging due to unique experiences.

Key Terms in Accommodations

  • Occupancy Rate:

    • Definition: The percentage of available rooms sold in a given timeframe.

    • Example Calculation: If a 100-room hotel sells 50 rooms, its occupancy rate is 50%.

  • RevPAR (Revenue per Available Room):

    • Definition: It’s the revenue generated per available room, calculated by total room revenue divided by the number of rooms available.

  • Types of Hotels:

    • Full-Service Hotels: Offer extensive amenities and services.

    • Limited Service Hotels: Provide fewer services but still offer some amenities.

    • All Suite Hotels: Feature separate living and dining areas.

    • Boutique Hotels: Unique properties with a distinct style often providing full services.

Hotel Ratings and Ownership

  • Ratings classify hotels based on luxury and service quality (e.g., 5-star rating system).

  • Hotel ownership can be complex, often involving franchises and brand names.

    • Franchise Models: Allow independent owners to use established brand names, with terms including fees and shared profits.

Transport in Hospitality

  • Transport is segmented into services that include different modes of transportation, contributing heavily to tourism.

  • Load Factor: The percentage of seats sold on transportation vehicles, indicating sales performance.

    • Example: If an airplane with 50 seats has 25 sold, the load factor is 50%.

Visitor Attractions

  • Visitor attractions are essential components of tourism, helping to draw tourists and increase demand for accommodations and transport.

  • Managed Visitor Attractions: Sites designated for public enjoyment, education, and entertainment (e.g., historical sites, museums, nature parks).

  • Visitor attractions may set higher prices to manage demand, ensuring they can support capacity with sufficient revenue.

    • Example: Parks may offer food to boost visitor spending and enhance infrastructure.

Conclusion

  • The hospitality sector integrates accommodations and transport while addressing key financial metrics to ensure successful management and operations.

  • Multiple types of accommodations and attractions cater to diverse tourist needs, from self-catering options to luxury experiences.