Chapter 5 - Meeting Guest Needs

LODGING: MEETING

GUEST NEEDS

CHAPTER 5

LEARNING OUTCOMES
1.
Identify the five criteria for classifying hotels and name the types
of hotels in each classification
2.
Principle customer types served by the hotel industry
3.
Identify the needs and preferences of business travelers, how

does the lodging industry accommodates them
4.
Examples of ways in which lodging is responding to the needs of

growing market segments senior travelers, female travelers
and family travelers
CLASSIFICATIONS of HOTEL
PROPERTIES
Can be classified according to price, function,

location, market segment and distinctiveness of
style
Many hotel can fall under more than one

category
PROPERTIES
Hotel classified by price
Hotel classified by function
Hotel classified by location
Hotel classified by market segment
Other Hotel Classifications
PROPERTIES
1. Limited-Service
Hotels
Hotel
classified by
price
-
Only guest rooms, little or no public space,

no meeting or function space, very limited or
no food and beverage facilities
Also called budget or economy hotels
Average daily rate in 2005 = $71.25,
Average size was 126 rooms
PROPERTIES
2. Full-Service
Hotels
Hotel
classified
by price
-
Offer a wide range of facilities and amenities,

more space and meeting/ function space, at
least one food and beverage facility
Average daily rate in 2005 = $127.20
Average size was 286 rooms
PROPERTIES
3.
Luxury Hotels
Hotel classified by price
-
Upscale dcor and furnishings that may be unique to the hotel

Full array of services and amenities
Concierge service, several food and beverage operations
including a gourmet/fine-dining restaurant, banquet facilities, full
room service (24hrs) and recreational facilities
High ratio of employees to guest rooms, with room rates above
the market area average
High-end corporations are entering the luxury hotel market
Average daily rate in first part of 2006 was $273.66 compared to
the overall hotel markets average daily rate of $96.42
The size from 150 to 400 guest rooms
Average occupancy rate of 71.6 percent compared to overall
hotel markets average occupancy rate of 62 percent
PROPERTIES
1.
Convention
Hotels
Hotel
classified
by function
-
Large 500 or more guest rooms, average size in 2005

= 780 rooms
Offer extensive meeting or functions space including
large ballrooms and exhibition space
Extensive food & beverage operations, several
lounges and restaurants, banquet facilities and room
service
Often located close to convention centers and other
convention hotels, providing facilities for citywide
conventions and tradeshows.
PROPERTIES
2. Commercial
Hotels
Hotel
classified
by function
-
100 to 500 guest rooms

Less public space, smaller meeting and
function space, fewer F&B outlets and
limited recreational amenities.
Located downtown
Near large office complexes and retail
stores/entertainment centers
PROPERTIES
1.
Downtown
Hotelsby location
Hotel
classified
-
Mostly known as Commercial hotels

First class down town properties are reasonable auto
friendly
Command higher rates offset land cost and to cover
whatever public facilities available.
2.
Suburban Hotels
Smaller than downtown hotels (200-350 rooms) and are

generally low to mid rise structures
Usually have interior corridors and meeting and
banquet facilities
PROPERTIES
3.
Highway
/ Interstateby
Hotels
Hotel
classified
location
-
4.
-
Smaller (about 100-250 rooms), low rise structures

Exterior corridors to guest rooms, minimal banquet and
meeting space, and some food and beverage facilities
Airport Hotels
Sizes and amenities vary depending on location and
size of the airport
Range from 250-550 rooms
Offer courtesy van that offers transportation to / from
airport
PROPERTIES
1.
Executive
Conference
Center segment
Hotel
classified
by market
Often in secluded or suburban settings and have

fewer than 300 guest rooms
Offer well designed learning environments, provide a
variety of small meeting rooms with audiovisual and
technological support
Meals and use of recreational facilities are often
included in quoted daily room rate
E.g. Georgia Tech Hotel & Conference Center in
Atlanta GA
PROPERTIES
2.
Resorts
Hotel
classified by market segment
Located in picturesque settings
200-500 guest rooms
Provide a comprehensive array of recreational amenities

depending on geographic location
Variety of food and beverage outlets
Often not feasible for guests to leave resort properties to

dine due to remote location
PROPERTIES
Hotel
Destination resorts tend to be dramatic, desirable resorts such as
Hawaii or the Carribbean that are long distances away from home. Visit
tend to be infrequent, usually once a year or less
Nondestination resorts (or Regional resorts) involve a short 2 or 3

hours trip by car. Visit tend to be shorter but more frequent
It is feasible for resorts of cater to both destination and nondestination travellers.
Resorts can also be classified on a seasonable basis such as summer, cold

winter (e.g. ski resorts), or warm winter (e.g. South Florida). Today, most resorts
operate year round, most notably those in Las Vegas and Orlando
Ecotourism is seen in a resort that is remote, located in an area of significant

natural beauty and where design elements of the property blend with
surroundings and protect the ecosystem
PROPERTIES
3. Casino
Hotels by
andmarket
Resortssegment
Hotel
classified
Why do casino hotels & resorts differ in their

operations compared to most hotels??
PROPERTIES
4.
Health
Spas
Hotel
classified
by market segment
Usually located in resort type settings or as a part of a

larger resort, provide special amenities focusing on needs
such as losing weight, reducing stress and pampering
oneself
Spas the fastest growing segment of the lodging industry in
the past 5 years, and are considered a necessity to remain
competitive in attracting leisure and business travelers
Spa staffs include dieticians, therapists, masseurs and
sometimes even physicians. Categories of spas include hot
springs, beauty spas, fitness spas and holistic spas
With the baby boomer market aging and becoming more
health conscious, spas will become increasingly profitable
PROPERTIES
5.
Vacation Ownership
Hotel
timeshares & vacation intervals

A type of share ownership in which the buyer purchases the
right to use a residential dwelling unit for a portion of the
year
In 2006, 4.1M households owned one or more
timeshares/condominiums. There are approx. 154,439
timeshare units in the U.S
They are priced according to factors including unit size,
resort amenities, location and season
The most popular form of timeshare property is a
seaside/ocean resort, followed by regional resorts & golf
resorts
PROPERTIES
1.
All Hotel
Suite Hotels
Other
Classifications
-
Guest rooms are larger than the normal hotel

room (more than 500 square feet)
A living area or parlor is typically separate

from the bedroom with some properties
offering kitchen areas
PROPERTIES
2.
Extended Stay Hotels
Other
Hotel
Classifications
Similar
to all suites
hotels except rates are usually
-
3.
-
significantly less with daily, weekly and monthly rates

Restaurants may be located nearby but there are no
on site food and beverage outlets
Historic Conversions
Properties that have historical significance and have
been renovated to their original splendor
Have great appeal as a combination of earlier
grandeur and elegance with modern amenities
PROPERTIES
4.
Bed and Breakfast Inns (B&Bs)
Other Hotel Classifications
-
5 to 10 rooms, average of 8 rooms

Serve breakfast which is included in the
quoted rate
Most B&Bs are outside of urban areas and
most owners live on the premises
The number of B&Bs has increased from
fewer than 1,000 in 1980 to about 20,000
today
PROPERTIES
5.
Boutique Hotels
Span all price segments and are noticeably

different in look and feel from traditional
lodging properties
Interior designs can range from postmodern
to homey.
Image and atmosphere distinguish them
Boutique themes tie into travelers desire to
be perceived as trendy, affluent and artistic
TYPES OF TRAVELERS
Highest
percentage of guests is Leisure

travelers 52% (2005)
Business
travelers 48% (2005)
TYPES OF TRAVELERS
Business travelers
A.
-
B.
-
Corporate market segment

Consist of for profit companies
More money to spend compared to non profits or other business
segments
Pay higher rates expecting quality service and facilities
Association Market Segment

More cost conscious than corporate segment
Consists of individuals or companies banded together in sharing
common purposes or goals
Members often pay for services themselves
Large number of attendees, require large convention and exhibition
facilities
TYPES OF TRAVELERS
Other Segments
SMERF business Social, Military, Educational,

Religious and Fraternal sources
Some are leisure based (Social=wedding, proms)
while some are more business based (Military and
education, religious)
SMERF customers look for lower rates compared to
corporate and association segments
Other segments include : tour/travel, cultural, sports
and government subsegments
TYPES OF TRAVELERS
International Travelers
-
In 2011, 24.6 million people travel from abroad to the Malaysia.
American brands of lodging are expanding rapidly abroad
As the global economy expands, more people travel

internationally. Asia has been of particular interest to major
hotel companies as they plan international growth.
Asia is the largest potential international market, particularly

China
ANTICIPATING GUEST NEEDS in

PROVIDING HOSPITALITY SERVICE
Hotels are a service industry with the goal of

meeting and exceeding guests expectations
To do this, managers must come up with

imaginative amenities and experiences
In-room technology?
Catering to senior travelers, females and

families?
ANTICIPATING GUEST NEEDS in

PROVIDING HOSPITALITY SERVICE (cont)
Travelers expect wireless internet capabilities not only in guest rooms

but throughout the hotel including meeting spaces
Hotels need to make their wireless systems future proof for rapid
technological changes more robust systems, sound cable
infrastructures and bandwidth shaping alternatives
Better lighting, easy to read instructions, nonskid flooring materials and

sensitive employee training to cater to older demographics
Offer gender specific amenities : skirt hangers, makeup mirrors, scented

sachets, makeup remover pads and fresh flowers
Free stay programs, childrens menus and in room video games for
grand travel
Hotel Rating Systems
Mobil Travel Guides and American Automobile

Association (AAA)
Hotel rated on quality of guest rooms,

amenities, recreational facilities, dcor and
furnishings, public areas, housekeeping
standards, restaurant operations and grounds
maintenance, service orientation &
professionalism of staff members
Employees as the Internal Customers
The hotel industry today employs approximately 1.4 million

workers
Many hotel companies are striving to become employers of
choice through better wage & benefit packages, more
career development opportunities, increased recognition &
mentoring
A positive workplace is a fundamental aspect of the
organizational culture
If we treat our employees right, theyll treat the customers
right. If the customer is treated right, theyll come back.
Extra Readings
www.ahla.com
www.marriott.com
www.ichotelsgroup.com
http://www.howstuffworks.com/about-mtg1.htm
http://en.wikipedia.org/wiki/Forbes_Travel_Guide

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LODGING: MEETING

Principle customer types served by the hotel industry

Identify the needs and preferences of business travelers, how

Examples of ways in which lodging is responding to the needs of

Can be classified according to price, function,

Many hotel can fall under more than one

Hotel classified by price

Hotel classified by function

Hotel classified by location

Hotel classified by market segment

Other Hotel Classifications

Only guest rooms, little or no public space,

Offer a wide range of facilities and amenities,

Upscale dcor and furnishings that may be unique to the hotel

Large 500 or more guest rooms, average size in 2005

100 to 500 guest rooms

Mostly known as Commercial hotels

Smaller than downtown hotels (200-350 rooms) and are

Smaller (about 100-250 rooms), low rise structures

Often in secluded or suburban settings and have

Located in picturesque settings

200-500 guest rooms

Provide a comprehensive array of recreational amenities

Variety of food and beverage outlets

Often not feasible for guests to leave resort properties to

Destination resorts tend to be dramatic, desirable resorts such as

Nondestination resorts (or Regional resorts) involve a short 2 or 3

It is feasible for resorts of cater to both destination and nondestination travellers.

Resorts can also be classified on a seasonable basis such as summer, cold

Ecotourism is seen in a resort that is remote, located in an area of significant

Why do casino hotels & resorts differ in their

Usually located in resort type settings or as a part of a

timeshares & vacation intervals

Guest rooms are larger than the normal hotel

A living area or parlor is typically separate

significantly less with daily, weekly and monthly rates

5 to 10 rooms, average of 8 rooms

Span all price segments and are noticeably

percentage of guests is Leisure

travelers 48% (2005)

Corporate market segment

Association Market Segment

SMERF business Social, Military, Educational,

In 2011, 24.6 million people travel from abroad to the Malaysia.

American brands of lodging are expanding rapidly abroad

As the global economy expands, more people travel

Asia is the largest potential international market, particularly

ANTICIPATING GUEST NEEDS in

Hotels are a service industry with the goal of

To do this, managers must come up with

Catering to senior travelers, females and

ANTICIPATING GUEST NEEDS in

Travelers expect wireless internet capabilities not only in guest rooms

Better lighting, easy to read instructions, nonskid flooring materials and

Offer gender specific amenities : skirt hangers, makeup mirrors, scented

Hotel Rating Systems

Mobil Travel Guides and American Automobile

Hotel rated on quality of guest rooms,