1. Hospitality & Tourism Standard 2 The students will develop an understanding of the lodging industry and destination marketing.

2. Objective 1 The students will understand market segmentation for the lodging industry.

3. Hotel Classifications 4 Main Types 1. Guest Type ○ Business ○ Leisure 2. Price 3. Location 4. Style & Function

4. Hotel Classifications continued… ○ Guest Types ○ Business Guests ○ Traveling for means of accomplishing work ○ Leisure Guests ○ Traveling for means of vacation for pleasure

5. Hotel Classifications continued… ○ Price ○ Budget (Economy) ○ Inexpensive with limited services ○ Examples: Comfort Inn, Motel 6 ○ Mid Price ○ More services than budget ○ Examples: Holiday Inn Express, Courtyard Marriott ○ Upscale (Luxury/Premium) ○ Offered in great locations, many services & amenities ○ Examples: Grand America, Hyatt Regency

6. Hotel Classifications continued… ○ Room Rate Variables ○ Room size & amenities ○ Location of the room ○ # of people staying in the room ○ Group, corporate or convention rate ○ Taxes, resort & service fees ○ Season ○ Quality of services ○ Currency fluctuations

7. Hotel Classifications continued… ○ Location ○ Airports ○ Freeway access ○ Downtown (bigger cities) ○ Conference Centers

8. Hotel Classifications continued… ○ Style & Function ○ All Suites ○ Large & spacious rooms, with a living room ○ Extendable Stay ○ Similar to a suite but includes a kitchen, generally guests stay 1 week or more ○ Bed & Breakfast ○ Few rooms, personal service & breakfast included, unique properties

9. ○ Style & Function ○ Spas ○ Massage & fitness centers, stress reduction activities, etc. ○ Vacation Properties (Timeshares) ○ Own a lodging location for a period of time ○ Boutique Hotels ○ Unique properties with themed designed rooms ○ Retreat Centers ○ Often rustic and lacks modern conveniences ○ Attracts travelers who want a secluded location Hotel Classifications continued…

10. Yield Management ○ Setting different prices for goods and services in an effort to maximize revenue when a limited capacity is a factor. ○ Hotels will use various formulas to calculate their rates.

11. Yield Management Pricing ○ Average Daily Rate (ADR) ○ Total Sales or Revenue / Rooms Sold ○ Occupancy Percentage (OCC%) ○ Rooms Sold / Total # of Rooms ○ Revenue per Available Room (RevPAR) ○ Total Sales or Revenue / Total # of Rooms

12. Hotel Room Rates ○ Rack Rates ○ Original price of a room ○ Walk in rate ○ Weekend Rates ○ Generally more expensive ○ High travel days ○ Frequent-Guest Incentives ○ Reward guests for each nights’ stay ○ Earn points for free nights

13. Objective 2 The students will understand the concept of destination marketing.

14. Basic Terms ○ Destination ○ A place to which one travels to (town, city, region, attraction) ○ Destination Marketing ○ The process of communicating with potential visitors to influence their destination preference, intention to travel and ultimately their final destination and product choices. ○ Resorts ○ A hotel with recreation facilities that appeal to those traveling for pleasure. The location will include accommodation, entertainment, recreation activities, food, etc. ○ Timeshares ○ Own a lodging location for a period of time ○ Commission ○ An amount of money paid to an employee for selling something

15. Seasonality ○ The peaks & valleys of DEMAND for a destination & its’ facilities. ○ Peak Season ○ When a destination is most desirable ○ Utah ski resorts during winter ○ New Orleans during Mardi Gras ○ Low/Shoulder Season ○ When a destination is least desirable ○ Utah ski resorts during summer ○ Cancun during hurricane season (June-November)

16. Seasonality continued… ○ How can resorts increase demand during its low/shoulder season? ○ Lower rates ○ Host business conferences ○ Special promotions ○ Offer different activities

17. Supply & Demand Concept ○ Supply ○ The amount of goods or services available at a given price & time. ○ Price & supply move in the same direction. ○ Demand ○ The amount of goods or services consumers want and are willing and able to buy at a given price and time. ○ Price & demand move in opposite directions. In relationship with price…

18. Elasticity of Demand ○ Elasticity of Demand ○ The variation of the change in price affects the change in demand. ○ Elastic (Luxuries) ○ Demand will decrease as prices rise ○ Demand will increase as prices decrease ○ Inelastic (Necessities) ○ Demand will not move much as prices change ○ Elastic Examples: ○ Airline Tickets ○ Automobiles ○ Furniture ○ Professional Services ○ Inelastic Examples: ○ Toilet Paper ○ Gasoline ○ Food ○ Clothing

19. Loyalty Programs ○ A rewards program offered by a company to customers who frequently make purchases.

20. 4 P’s of Marketing & Lodging ○ Product ○ Benefits & features of a hotel & room ○ Hotel can conduct Primary Research by surveying guests for improvements ○ Price ○ What customers are expected to pay for a hotel room ○ Place/Placement ○ How a hotel or room will be provided to the customer ○ Promotion ○ Marketing communication strategies & techniques a hotel uses ○ Advertising, sales promotions, special offers & public relations PRODUCT PRICE PLACE PROMOTION

21. Objective 3 The students will be able to identify basic hotel operations.

22. Hotel Operations ○ Front-of-the-House ○ Departments that deal directly with hotel guests ○ Service, front office, accounting, credit, office management, security, advertising, sales, executive management ○ Back-of-the-House ○ Operations that seldom deal with hotel guests ○ Housekeeping, food, engineering ○ Concierge ○ Assists hotel guests ○ Restaurant reservations, booking hotels, arranging spa services, recommending nightlife, booking transportation, travel arrangements & tours, etc.

23. Hotel Operations continued… ○ Room Division ○ Largest number of employees ○ Generates the largest amount of revenue ○ Two departments ○ Housekeeping ○ Front Office (heart of a hotel)

24. Hotel Operations continued… ○ Food & Beverage ○ Operations (daily hotel functions) ○ Restaurant manager, contract food-service manager, food & beverage director ○ Productions (daily planning & producing of quality food items) ○ Purchasing director, receiving manager, chef ○ Service (providing food in a prompt & efficient way) ○ Catering, banquet, convention managers and banquet server