1. Accommodations and Hospitality Services
6th course

2. Hospitality industry includes:
Accommodations industry – characteristics:
Seasonality –great flexibility in the use of structures
Manpower planning – the industry is labor-intensive, which further compounds the problems caused by seasonality – planning of temporary employment
Perishability – accommodation production cannot be stocked and non-utilization is expensive
Food and beverage industry

3. Historical Development
The term hospitality is derived from hospice, a medieval “house of rest for travelers.”
At the height of the Roman Empire
inns flourished along major highways, primarily for government officials and persons of importance
In Asia, small shelters were placed at stops along caravan routes.
pilgrims looked to religious houses to give sanctuary, rest, and refreshment along the way.
Food service also can be traced back in history, perhaps as far back as 4000 B.C. when establishments began selling food and wine. Such establishments continued and flourished during the Greek, Roman, and Byzantine periods.
15th century - commercial hospitality ventures - in Europe - the forerunner of the “bed and breakfast” type of accommodation
16th century - some inns and taverns in England began serving meals at set prices at regular meal times.
end of the 17th and the dawn of the 18th centuries - lodging facilities which could be called the early versions of hotels made their appearance.
the first hotel was opened in London; later in 1794 the City Hotel opened in New York City.
In the late 18th century, the term “restaurant” was first used in Paris referring to a dining room, and in the United States, Delmonico’s opened in 1834 offering meals in the English fashion of fine dining.
In the United States - the first hotel equipped with modern amenities resembling today’s facilities - the Tremont House - built in 1892 in Boston, Massachusetts.
hotels like the Ritz in Paris, France, the Savoy in London, England, and the Raffles in Singapore set standards for service and quality.
20th century - United States - E.M. Statler - among the first to upgrade the guest experience: larger guest rooms with private baths, running water, light switches, telephones, room service, in-room radios, and hotel-to-hotel reservations systems. Further innovations in American hotels included central heating, air conditioning, passenger elevators, electric lighting, and sewage disposal systems.

4. Accommodations Classification
many forms of accommodation, classified according to different criteria:
Built accommodation or alternative accommodation: hotels, resort properties, destination property, national heritage accommodation, second homes, cruise liners and holiday centers, campsites.
Individual or collective accommodation: rented accommodation or holiday villages
Profit and non-profit making accommodation: hotels or holiday camps for children or social accommodation

5. Accommodations Classification
Hotels:
generic meaning, applying to a wide range of property types
a property’s type - based on its amenities <- the target markets that the property aims to attract
Subgroups:
Airport hotels: located within ten miles of an airport
Convention hotel: located in major cities, often near a municipal convention center
Commercial hotels: located in urban areas with business travelers as the primary target market, usually upscale or midscale.
Suite hotels: apartment-style hotel rooms, generally offering more space and upscale amenities.
Motor hotels: located close to a highway for automobile travelers

6. Accommodations Classification
Resort Properties:
activities like golf, tennis, spas, skiing, or a combination of similar recreational activities.
resort guest - typically a longer stay client
resort properties - more activities and extended amenities than urban hotels.
resorts today are becoming more specialized
one-stop destination
the industry increasingly views itself as part of broader industries - recreation and entertainment.

7. Accommodations Classification
Casino/Destination Property:
specialized property with gaming as the central activity
Las Vegas - new type of lodging - a combination of casino and destination property
self-contained destinations
National Heritage Accommodations :
historic buildings and structures such as palaces, castles, chateaus, monasteries, convents that have been converted to hotels – paradores, pousadas, ryokan, auberges
Bed and Breakfasts:
privately owned homes and inns
from luxury to economy-type accommodations

8. Accommodations Classification
Second homes:
homes wholly owned by tourists
homes with shared collective services (condominiums) - serviced by a management company (maintenance of the apartments, laundry and linen hire, management of common equipment).
time shares - individually owned “room/apartment intervals”
Increasingly, properties are managed by specialized management companies including several major international hotel management organizations such as Marriott, Hilton Hotels Corporation, and Disney.
The US is the largest timeshare area, both in terms of the number of resorts and number of owners. The biggest timeshare market in Europe is UK.

9. Accommodations Classification
Furnished rented accommodation:
the advantage of elasticity to the tourism supply
seasonally rented furnished accommodation - the most buoyant markets are in the Mediterranean resorts
cottages and farmhouse accommodation - rural cottages (gites) - particularly in France
guest lodging - form of lodging particularly developed in Great Britain, Austria, Ireland, Portugal (estalagem), Italy (pensione) and Greece. Rooms are rented in private houses with breakfast provided. Quality is difficult to control in this type of accommodation.

10. Accommodations Classification
Social accommodation:
includes holiday centers, family holiday camps, youth hostels and accommodation provided by associations and staff clubs in firms
the accommodation is provided on a non-profit basis.

12. F&B establishments classification
Food and beverage outlets:
more sensitive to economic cycles than most other types of retail businesses
typically have high failure rates
food and labor costs - 60 to 65% of revenues
ratio of profit to sales is very low
Hotel-Related Food Establishments
full-service international hotels average approximately
30% of their revenues from food and beverage sales – USA
50% of hotel revenues - Singapore and Hong Kong
Independent Food Service Establishments
individually owned and operated, part of a corporate chain, or a franchise.
major food service segment within the travel industry is transportation-related

14. Accommodations ownership and management The Emergence of International Hotels
Post WWII development – “good neighbor” policy towards Latin America and the Caribbean – Roosevelt – “hemisphere solidarity”
Pan Am – IHC – wholly-owned subsidiary:
to serve international passengers
to house airline crews
1st Inter-Continental abroad – Brazil
1st Hilton abroad – Puerto Rico
Expansion in Europe – ’50s – ’60s - followed American transnational manufacturing companies – aimed at covering “the dollar gap” – part of the Marshall Plan to help Europe help itself
European hotels were also developing – Forte, Grand Metropolitan
Expansion in the Middle East – ’70s – OPEC prices rise
Expansion in the Asia-Pacific – ’70s – fastest growing economic area - China
Second round of development – ’80s – single European market – Marriott, Nikko, Oberoi, Taj International
Expansion in North America – ’80s - mergers and acquisitions
Currently – Europe – 50% of the world’s hotel rooms

15. The Emergence of International Hotels American Hotels Chains
American chains are responsible for:
the separation of property ownership from hotel management
the segmentation of hotel products
the standardization of operations
the development of standards in hotel construction
chain marketing affiliation
franchising
centralized computer reservation systems
Originally – managing a hotel - incidental to the goal of increasing the market value of properties
Most US chains expanded by selling off much of their capital-intensive real estate, while retaining management rights
Hyatt – separated business and property
Brand name and expertise export

16. International Hotel Classifications and Standards
Purpose:
Standardization – system of uniform service and product quality – creates an orderly travel market distribution system
Marketing – advise to travelers on the range and type of hotels available + means of promoting a destination + encouraging competition
Consumer protection – minimum standards of accommodation, facilities and services
Revenue generation – provides revenue from licensing, the sale of guidebooks etc.
Control – system for controlling general industry quality

17. Fundamentals of Classification Systems
Registration = form of licensing that may or not require a minimum standard
Health, fire-safety legislation etc.
Classification = assignment of hotels to a categorical rating according to type of property, facilities and amenities offered
Grand luxe, deluxe, five-star, first class superior, first class, second class, moderate, third class, tourist, budget, economy
Grading = quality assessment – awarding of special symbols to indicate achievements of high standards

18. Fundamentals of Classification Systems
Criteria:
The establishment of categories
The setting of criteria for each classification
Provision for special type of accommodation
The establishment of methods of inspection and of classification
A separate assessment of the standard of cuisine
The establishment of penalties
The independence of the classification system from the tax system
A means of appeal to a higher authority in case of dispute

19. Classification systems in practice
official: national, government implemented – drafted by NTA, in cooperation with hotel trade representatives
private (voluntary): commercial – companies or associations involved in the promotion of tourist services
Guide Michelin – Michelin Tire Company
France – government grading system + commercial rating services
5 grade levels – houses + pictorial symbols

20. Classification systems in practice
Mobil Travel Guide - Mobil Oil Corporation
One of the most critical, yearly evaluation
Voluntary program
60-70% - 1 (good) and 2 (very good) stars, 30% - 3 (excellent) stars, 5% - 4 (outstanding) and 5 (among the best in the country) stars
Areas for evaluation: physical structure, furnishings, maintenance, housekeeping, overall service, food service
American Automobile Association – Tour Books
First – classified in: hotel, resort, motel, country inn, historical property, loge, cottage, ranch, complex
Diamonds – 1 to 5: renowned, exceptional, very comfortable and attractive, exceeds requirements in some areas, meet basic requirements
7% - 4 diamonds, 1% - 5 diamonds

21. Classification systems in practice
Israel – official - point system:
Property and facilities
Services and products
1 to 5 stars + five-star deluxe
up to 4 years
Great Britain
voluntary – separates classification (facilities and services) from grading (quality)
Classification - 6 levels – 0 to 5 crowns
Grading – highly commended, commended, approved
Self-evaluation
AA Britain – stars and rosettes (cuisine)
Ireland
Compulsory system, revised periodically
Two-tier – structural and operational criteria
The structural portion – 5 categories – roman numeral designation;
The operational portion – 4 stars
Spain – compulsory classification system
Responsibility of regional authorities
No national standard criteria
Sweden, Switzerland – classification based on prices
Other countries – minimum no of bedrooms, quality of hotel management (Cyprus); indicative official guides (Germany, Denmark)

22. World-Class service standards
“World-class” – unofficial standard – hotel that provides a level of luxury and range of services equal to any other in the world
Target prominent world travelers, who can lend their prestige to the status of the hotel
Classic hotels with long-standing traditions, well maintained and refined over the years
Culturally sensitive service
Hotel with a visionary strategy

23. American Hotels Chains HILTON
The Plaza, Waldorf-Astoria, Statler Hotel chain
International expansion:
Strong US dollar
Increasing travel demand
Improved commercial air travel
Marshall Plan
First hotel company to be listed on the NYSE
1949 – Hilton International (wholly-owned subsidiary of Hilton Hotels) – modern hotel management contract – 1964 – spun off - listed
Joint Hilton Reservation Service
1979 – Vista International – expansion of HI in the US
1983 – HH – Conrad International – outside US
Brands: Hilton, Conrad, Scandic, Coral
Also: Hilton Worldwide Resorts, time-share company Hilton International Grand Vacations and the LivingWell chain of health and fitness clubs that operate inside hotels and as standalone clubs.
February 2006: sale of Hilton International to HHC completes

24. American Hotels Chains INTER-CONTINENTAL
the world’s largest hotel operator by bedroom numbers
IHC – 1946 – wholly-owned subsidiary of Pan Am
Rapid growth – acquiring new properties:
In Asia – the first company to open a hotel – Bali
In the Middle-East – Lebanon
‘80s - Eastern Europe – the leading international hotel group represented here
Two-tier operator
lesser properties – Forum Hotels
classic and newer properties – Inter-Continental
Unique hotel architecture, restoration of hotels – palaces, government buildings – local environment
1981 – Grand Metrolpolitan (UK); 1988 – 60% Saison Group (Japan), 40% SAS International Hotels; 1991 – Saison Group; 1998 – Bass Plc - > Six Continents Hotels
separation:
Hotels – Inter-Continental Hotels Group: IC, Crowne Plaza, Holiday Inn, Holiday Inn Express, Indigo, Staybridge Suites, Candlewood Suites
Restaurant and pubs part of Six Continents became Mitchells& Butlers Plc
2003 – change - from investing heavily in hotel properties to a hotel franchise and management company with only a few owned assets.
industry-leading asset sale program - many of the hotels have remained under IHG brands with management or franchise contracts, thereby creating a future income stream for IHG.

25. American Hotels Chains INTER-CONTINENTAL

26. American Hotels Chains HOLIDAY INN
Start – standardized motels across US
Limited amenities, clean rooms, low rates, attention to detail
1960 – first property outside US – Montreal
extended franchising and national reservations network
Diversified with new lodging concepts
1989 – Bass Plc

27. American Hotels Chains SHERATON
Acquisition of distressed properties
1949 – acquired two Canadian hotel chains
inter-continental linkage – Tel Aviv Sheraton
Innovation and expansion:
Reservatron – the industry first automated electronic reservations system
First chain with a toll-free number
1968 – subsidiary of ITT
1985 – first to open a hotel in China
First to sign a joint venture with the Soviet Union
Starwood Hotels and Resorts Worldwide: Four Points, St. Regis, The Luxury Collection, W Hotels, Westin, Le Meridien, Starwood Vacation Ownership, The Luxury Collection .
aloft - a sophisticated select service brand offering loft-like guest rooms, enhanced technology, and landscaped outdoor spaces for all-day socializing

28. American Hotels Chains MARRIOTT
leading player in the international hotel, timeshare and corporate accommodation markets
Hotel brands Marriott Hotels & Resorts (full-service, upper-midscale brand) JW Marriott Hotels & Resorts (full-service luxury brand) Renaissance (full-service upper- to mid-scale brand) Courtyard by Marriott (select-service three-star brand) Ritz-Carlton Hotel Company (full-service luxury brand) Fairfield Inn by Marriott (select-service economy brand) Bulgari Hotels & Resorts (full-service luxury brand in partnership with Italian jewellery firm Bulgari) SpringHill Suites by Marriott: (select-service, all-suite brand)
Extended-stay hotel brands (five days or more) Residence Inn (home-away-from-home brand: suites include kitchens) TownePlace Suites by Marriott (mid-priced, extended stay brand) Extended-stay corporate accommodation brands (30 days or more) Marriott Executive Apartments Marriott ExecuStay 
Timeshare resort brands Marriott Vacation Club International The Ritz-Carlton Club (private residences for members in prime resorts) Horizons (value-for-money brand) Marriott Grand Residence Club (sited in premier, second-home destinations)

29. American Hotels Chains HYATT CHOICE HOTELS INTERNATIONAL
Hyatt Hotels Corporation – upscale urban hotels
Hyatt Regency – premium upscale – “total experience” – unique in-hotel dining facilities
Hyatt International – management company
Camp Hyatt – industry’s first chain-wide children’s program
Choice Hotels International
2nd largest franchise hotel system in the world
Brands: Comfort, Quality, Clarion, Sleep, Rodeway, Econo Lodge, Friendship
First chain to:
implement non-smoking rooms program
introduce midpriced all-suites
pay travel agent commissions in every major foreign currency
introduce the concept of brand segmentation – three-tired hotel system:
Limited-service budget hotels: Comfort Inns
Full-service midpriced hotels: Quality Inns
Full-service luxury hotels: Clarion Hotels and Resorts
All-suites: Comfort Suites, Quality Suites, Clarion Suites
Economy-priced: Sleep Inns, Clarion Carriage House Inns

30. American Hotels Chains RADISSON HOTELS & RESORTS
Radisson Hotels & Resorts - one of the lodging brands of Carlson Hotels Worldwide.
Carlson Hotels Worldwide is part of Carlson Companies, Inc. - one of America's largest privately-owned corporations.
Global presence and expansion into new markets - key part of Radisson's heritage.
Radisson opened the first American-managed hotel in Moscow and today has several locations throughout Europe and the Middle East.
Growth strategy - management agreements, licensing and partnerships with existing hotel companies.
company's highly successful partnerships:
Rezidor SAS Hospitality's development of Radisson SAS hotels
Radisson Edwardian Hotels in the United Kingdom.
the Carlson family of brands and services are: Regent Hotels & Resorts®; Radisson Hotels & Resorts ®; Park Plaza Hotels & Resorts ; Country Inns & Suites By Carlson; Park Inn® hotels; Regent Seven Seas Cruises® ; T.G.I. Friday's® and Pick Up Stix® restaurants; Carlson Wagonlit Travel; Cruise Holidays; All Aboard Travel ; Cruise Specialists; Fly4Less.com ; CruiseDeals.com ; Results Travel; Carlson Destination Marketing Services; Carlson Leisure Travel Services; SeaMaster Cruises® ; SinglesCruise.com®; CW Government Travel; Carlson Marketing®; Peppers & Rogers Group® ; and Gold Points Reward Network® , an online/offline consumer loyalty program.

31. American Hotels Chains FOUR SEASONS HOTELS AND RESORTS
Canadian-based company that manages an international portfolio of luxury five-star hotels and resorts.
Worldwide occupancy: 69.2% Worldwide average daily rate: US$349 Worldwide revenue per available room: US$228
The group has three main business divisions:
Four Seasons Hotels and Resorts: five-star hotels in major city centers and resort destinations
Four Seasons Residential Properties: luxury serviced homes
Four Seasons Residence Clubs: luxury timeshare properties

32. American Hotels Chains CENDANT CORPORATION
Real Estate Services – Realogy
Hospitality Services (including Timeshare Resorts) – Wyndham Worldwide
Travel Distribution Services - Travelport
Vehicle Rental businesses – Avis Budget Group
Wyndham Hotel Group encompasses nearly 6,500 franchised hotels and more than 543,000 hotel rooms worldwide under the Super 8®, Days Inn®, Ramada®, Wyndham Hotels and Resorts®, Baymont Inn & Suites®, Wingate Inn®, Travelodge®, Howard Johnson®, AmeriHost Inn® and Knights Inn® brands.
All hotels are owned individually and operated independently or by a Wyndham Hotel Group subsidiary
In conjunction with the acquisition of the Wyndham Hotels and Resorts brand in 2005, the company established Wyndham Hotel Management Company, a lodging management services subsidiary.
Wyndham Hotel Group International, another subsidiary, franchises 380 hotels representing nearly 52,000 rooms in 48 countries outside of North America under the Days Inn, Howard Johnson, Ramada and Super 8 brands.

33. European Hotels Chains FORTE PLC, CLUB MED
Forte Holdings – catering, duty-free shops, motorway service areas, hotels
Merged with Trust House – restoration of old coaching inns
Growth – alternative expansion means – joint ventures, new lodging concepts, acquisitions (Travelodge chain – US)
3 brands – Forte Crest Hotels, Forte Posthouse Hotels, Forte Travelodge
3 “collections” – Forte Exclusive Hotels, Forte Grand Hotels, Forte Heritage Hotels;
Rocco Forte – luxury brand
Owns many of its properties
Granada Group buys Forte and subsequently merges with contract caterer Compass (in 2000) and then de-merges in February 2001, leaving Compass with the Forte hotel, restaurant and contract catering businesses.
Acquired Le Meridien, then sold to Nomura
Club Med – founded as a sports association – vacation village – Mallorca
’80s – change of image – broader, wholesome family approach
“rent-a-village” concept
packages in only one week units
Club Jr, Club Renaissance, Les Villas – small upscale hotels design for guests visiting nearby tourist attractions

34. European Hotels Chains ACCOR, LE MERIDIEN
Accor – operates hotels in more countries than any other hotel chain
Expansion strategy – to promote a strong F&B operation
Operates numerous brands and lodging products: Sofitel, Novotel, Mercure, Ibis, Urbis, Formule 1, Motel 6, Etap, Dorint Resorts and Spa
Expanding largely through acquisition
Goal – to dominate the midscale market in Europe and budget hotel market worldwide
Meridien – created by Air France
Expansion has followed the pattern of Air France’s routes
1994: UK hospitality giant Forte buys the 85-strong Le Méridien chain
strategic alliance with Nikko Hotels International, which is owned by Japan Airlines
2001: Nomura International’s Principal Finance Group buys Le Méridien from Compass
2005: Starwood Hotels and Resorts completes the acquisition of the Le Méridien brand, management and franchise business
Elegant hotels in which people feel comfortable – fashion, French cuisine
alliance with Kempinski Hotels (Lufthansa Airlines)

35. European Hotels Chains RIU HOTELS AND RESORTS
1953 – first hotel in Mallorca
in the context of this internationalization, the RIU family, owners of the chain, set up a company with their traditional German partner TUI (Touristik Union International), the largest tour operator in Europe.
Classic hotels: 3-4 stars, aparthotels
Club hotels: 4-5 stars, all inclusive
Palace hotels: 4-5 stars, RIU Palace - singular hotels located in unique settings and with exclusive service
Grand Palace hotels: 5 stars – luxury – Gran Canaria

36. European Hotels Chains GRUPO SOL
1976 – Sol Hotels brand – expansion into Costa del Sol
First property outside Spain – Bali, Indonesia
1987 – acquired Cadena Melia – prestigious chain
Sol Hotels – three and four-star resort properties, primarily oceanfront
Melia – five-star brand – large resort and urban business hotels
Own training school – European-style service and ambiance
Other brands: Tryp Hotels, Paradisus Resorts, Hard Rock Hotel, Sol Melia Vacation Club

37. European Hotels Chains GOLDEN TULIP
Golden Tulip Hospitality Group - head offices in Amersfoort, The Netherlands and Lausanne, Switzerland;
provides services through franchising, management and leasing of individual hotels as well as through alliances, joint ventures, mergers or acquisitions of existing hotel groups in the two, three, four and five star categories;
two-star - an alliance with the French B&B hotel chain
three-star concept - Tulip Inn - limited-service first-class category
four-star category – Golden Tulip - Superior First-Class business and resort hotels
five-star Luxury category - Royal Tulip
in addition Golden Tulip offers its services through
its commercial alliance with TOP International,
a German based hotel consortium.

38. Indian Chains TAJ GROUP, OBEROI
The Taj Group – subsidiary of Indian Hotels Company, part of Tata Group
Flagship – Taj Mahal Hotel – Bombay – 1903 – steel industry
Taj International Hotels – New York
Present in all major metropolitan cities and tourist towns in India – mix of properties – city hotels, converted palaces, beach resorts
Largest Asian-based hotel chain outside the Orient
Buys older hotels and renovates them; many do nor carry the “Taj” name
Oberoi – subsidiary of East India Hotels
Concentrates on the deluxe end of the market
Five-star hotels – personalized service – 3 persons/room
60% of its rooms – outside India
Focus on profitability and quality assurance
Restricted its expansion to Middle East, North Africa
and Southeast asia
Joint venture with Accor to develop Novotel in India

39. Asian-Pacific Chains NEW OTANI, NIKKO, REGENT INTERNATIONAL, MANDARIN ORIENTAL
best Japanese-style hotel company in NY
19 hotels, 4 countries
Nikko
Subsidiary of Japan Airlines
Initial expansion – serving Japanese travelers abroad
Goal – to have a hotel in each of the 50 JAL gateway cities
Has built almost all of ita own hotels
Western in architecture and design, but with Japanese touches
Japan – includes a collection of ryokan
Regent International
Top-level hotels in key cities initially in Asia and the Pacific and gradually expanding in North America and Europe
Prime locations, top of the line facilities, award-winning restaurants
Beverly Wilshire Hotel
Part of the Japanese interest in Regent – sold to Four seasons (canadian hotel chain)
Mandarin Oriental
Hong-Kong-based
Listed on the HKSE
Unrelated to the Singapore Mandarin Group
Strong reputation for the name – among the best hotel operators in the world
Small number of hotels
Expansion outside Asia – equity purchases

40. African Chain SOUTHERN SUN HOLDINGS
Subsidiary of South African Breweries Ltd., the largest owner and operator of hotels n the African Continent
Publicly listed company – Johannesburg SE
Southern Sun Holdings
South African Holiday Inns
Southern Sun Timeshares
50% stake in TFC Tours travel group