Intro to Tourism Hospitality Chapter 3 Copyright Introduction

Intro to Tourism & Hospitality Chapter 3

Copyright Introduction to Tourism and Hospitality in BC by Morgan Westcott, Editor, (c) Capilano University is used under a CC-BY 4. 0 International license. This chapter is by Rebecca Wilson-Mah and is used under a CC-BY 4. 0 International license.

Learning Outcomes Explain the contribution the accommodations sector makes to Canada’s economy Identify how a hotel category is determined, and describe different hotel categories in Canada Explain the meaning and structure of independent ownership, franchise agreements, and management contracts Summarize current accommodation trends Discuss the structure of hotel operations

Canadian Hotel Stats Accommodations account for 25%-35% of visitor spending 8090 hotels with a total of 440, 123 rooms $16. 7 billion in spending Average occupancy of 64% Employed 287, 000 people (Hotel Assoc. of Canada, 2014) Figure 3. 1: Balcony view from Vancouver’s Westin Bayshore Hotel

History of Hotels in Canada Railways = hotels for tourists (late 1800 s) CP hotels, CN hotels Glacier House William Van Horne: “If we can’t export the scenery, we’ll import the tourists” (Canada History, 2013) Figure 3. 2: The Banff Springs Hotel, present day

Hotel Types Size Location Level of Service Market and function Ownership and affiliation Amenities Industry standards Brand standards Figure 3. 3. : A wedding at the Pan Pacific

Characteristics Based on Market Type Market Segment Traveller Type Characteristics Commercial Business High-volume; stronger demand on weekdays; more recession-proof; lower ADR Leisure Stronger demand Friday and Saturday, during holidays; includes groups MCIT Corporate groups, associations, SMERF Peak convention demand is spring or fall; close to a conference centre/event space importance Extended Stay Business and leisure Often features kitchen facilities; more than five nights (includes snowbirds)

Specific Hotel Types for Niche Markets Budget hotels (Holiday Inn, Accor) Boutique hotels (Magnolia Hotel and Spa) Resorts (recreation facilities and amenities) Figure 3. 4: A note welcomes a return guest at the Magnolia in Victoria

Ownership - Independent Financed by one person or a small group Managed directly by owners or third-party operators they employ Management system free from outside control Figure 3. 5: The Wedgewood in Vancouver

Ownership – Management Contract Owners of the property contract out the management Can be a franchise agreement Can be a contract with a corporation to provide the brand management expertise (e. g. Fairmont Hotels) Figure 3. 6: The Fairmont Empress

Ownership – Chains and Franchise Agreements Owners build or purchase a hotel Buy or lease a brand name and operations style (e. g. image, goodwill, procedures, controls, marketing, reservations systems) (e. g. Coast Hotels) Figure 3. 7: The Coast Bastion in Nanaimo

Ownership – Fractional Developers finance the build by selling units in up to ¼ shares Very popular in BC from the late 1990 s to 2008 (Western Investor) Owners place units in a rental pool managed by a company (each unit has up to 8 owners) – can be very challenging, falling out of favour Figure 3. 8: The Sun Peaks Resort Hotel

Ownership – Full Ownership Strata Developers finance the build by selling whole condo units Units make up part of the building Rest of building is a hotel, developed with funds from the condo sales Figure 3. 9: The Rosewood Hotel Georgia

Financial Performance Occupancy (how full the hotel is at any given time) ADR (Average Daily Rate) Rev. PAR (ADR x Occupancy) COPR (Costs per occupied room) Top earners in Canada, 2013: Four Seasons, Fairmont Raffles Hotels, Starwood Hotels and Resorts, Marriott Hotels of Canada, Wyndham Hotel Group

Camping and RV Accommodation Canada and BC’s brand are closely tied to the outdoors 14% of Canadian households owned an RV in 2011, over 1 million RVs on the road 3000 independently owned campgrounds across Canada, roughly 900 of these are in BC (CNW, 2014) Figure 3. 10: Campers in the distance

Operations GM/Director of Ops Maintenance/Engineering Food & Beverage Sales and Marketing Catering and Conference Sales HR Rooms Division Front Office Housekeeping Reservations Figure 3. 11: Vicky works the front desk

Trends and Issues The sharing economy (e. g. Airbnb) Distribution through Online Travel Agents (OTAs) Online Bookings and Mobile Devices Figure 3. 12: the homepage of Airbnb

Conclusion Multiple business models from franchise hotels to campgrounds Operators and owners have to stay on top of industry and consumer trends to remain competitive Figure 3. 13: Room service at the Pan Pacific

References Airbnb. (2015). How to host. Retrieved from www. airbnb. ca/help/getting-started/how-to-host Canada History. (2013). The railroad. Retrieved from www. canadahistory. com/sections/eras/nation%20 building/Railroad. html CNW. (2014, May 1). Canadian RV and camping industry urges government to address critical infrastructure needs. Retrieved from www. newswire. ca/en/story/1347701/canadian-rv-andcamping-industry-urges-government-to-address-critical-infrastructure-needs Economist, The. (2013). Silverstein, B. The rise of the sharing economy. Retrieved from www. economist. com/news/leaders/21573104 -internet-everything-hire-rise-sharing-economy Fast Company. (2012). Airbnb – Most innovative companies 2012. Retrieved from www. fastcompany. com/3017358/most-innovative-companies-2012/19 airbnb

References Hotel Association of Canada. (2014). Hotel industry fact sheet. Retrieved from www. hotelassociation. ca/forms/Hotel%20 Industry%20 Facts%20 Sheet. pdf Inversini, A. , Masiero, L. (2014). Selling rooms online: the use of social media and online travel agents. International Journal of Contemporary Hospitality Management, 26 (2), 272 -292 Melloy, J. (2015, February 2). Airbnb guests triple hurting Priceline, Home. Away. CNBC. Retrieved from www. cnbc. com/id/102389442 Then Hospitality. (2014, April 15). The benefits of using online travel agencies (OTAs). Retrieved from www. thenhospitality. com/blog/the-benefits-of-using-online-travel-agencies-otas Travel Click. (2014). Business and leisure travelers continue to book more hotel reservations online. Retrieved from www. travelclick. com/en/news-events/press-releases/business-andleisure-travelers-continue-book-more-hotel-reservations-online

Attributions Figure 3. 1 Shot from balconey by Alan Wolf is used under a CC BY-NC 2. 0 license. Figure 3. 2 Banff Springs Hotel by Evan Leeson is used under a CC BY-NC-SA 2. 0 license. Figure 3. 3 JONETSUpanpac 07 by Jonetsu. ca is used under a CC BY 2. 0 license. Figure 3. 4 The Magnolia Hotel (Victoria) 2013 by Raul Pacheco-Vega is used under a CC BY-NC-ND 2. 0 license. Figure 3. 5 Wedgewood Hotel by Stewart Marshall is used under a CC BY-NC-ND 2. 0 license. Figure 3. 6 The Empress by 3 dpete is used under a CC BY ND 2. 0 license.

Attributions Figure 3. 7 Coast Bastion Hotel (Nanaimo) by Raul Pacheco-Vega is used under a CC BY-NC-ND 2. 0 license. Figure 3. 8 Delta Sun Peaks Hotel by jhopkins is used under a CC BY 2. 0 license. Figure 3. 9 Hotel Georgia, Rosewood Hotel Vancouver by Rishad Daroowala is used under a CC BY-ND 2. 0 license. Figure 3. 10 Night Neighbours by James Wheeler is used under a CC BY-NC-SA 2. 0 license. Figure 3. 11 Vicky Lee at Delta Burnaby Hotel by Link. BC is used under a CC BY 2. 0 license. Figure 3. 12 Scott and Tina Visit the Pan Pacific Vancouver by Pan Pacific Hotel is used under a CC BY 2. 0 license. Figure 3. 13 Airbnb by Gustavo da Cunha Pimenta is used under a CC BY-SA 2. 0 license.