Summary Slide z Hotel Sizes z Hotel Classifications

Summary Slide z. Hotel Sizes z. Hotel Classifications z. Diagram–Compression z. Product Types z. Diagram–Service Levels z. Product Types z. Diagram–Cost vs. Product z. Internet Exercise Figure 2 -1

Hotel Sizes z Classification Small Medium Large Mega Number of Sleeping Rooms 1 to 150 151 to 400 401 to 1, 500 1, 501 and over z. Why do management salaries increase as the number of guest rooms increase? Figure 2 -2

Hotel Classifications z. Location types y. Downtown y. Resort y. Airport y. Suburban z. What is a special attraction? z. How does seasonality affect a hotel? z. How does compression of demand affect a hotel? Figure 2 -3

Compression of Demand Suburban Airport Demand Sold Out City Center Demand Resort (Downtown Location Type) Suburban Figure 2 -4

Product Types z Service Level y. Limited Service y. Mid-Market y. Full Service z What are some current market examples of each service level? Figure 2 -5

Service Levels Economy Budget Mid-Market Luxury Upscale Limited Service Full Service * * Economy Market Examples Budgetel Inn Fairfield Inn Motel 6 Red Roof Inn * * Budget Market Examples Best Western Econolodge Knights Inn Super 8 Motels Upscale Examples * Omni * Marriott * Hilton * Westin * Hyatt Luxury Examples * Four Seasons * Intercontinental * Ritz Carlton Mid-Market Examples * Courtyard * Holiday Inn * Howard Johnson * Ramada Inn Figure 2 -6

Product Types z. Service Level y. Limited Service y. Mid-Market y. Full Service z. Target Market y. Extended Stay y. All Suite z What is a Hybrid Market? Figure 2 -7

Cost vs. Product Figure 2 -8

Hotel Types Internet Exercise As was the case throughout history, establishing hotels as areas of rest in relation to journey segments and junction points is practiced today–e. g. , roadside motels along stretches of highway, bed & breakfast inns in areas of grand nature, and high rise hotels in city centers. Figure 2 -9

Hotel Types Internet Exercise Researching the Internet, find examples of three or more property types. Ideally, these would be local hotels that you could visit. Use these URLs to get started: yhttp: //www. traveldata. com yhttp: //www. motels. com y. Use the web site of your local convention/visitor's bureau (ex: http: //www. nycvisit. com/index. html) Figure 2 -10

Hotel Types Internet Exercise z. List three external factors that would affect the success and profitability of these or other types: y. Road Side Motel y. Bed & Breakfast Inn y. High Rise Hotel z. Did you find any factors that applied to more than one type of property? Why or why not? Figure 2 -11

Hotel Types Internet Exercise Use the Internet to answer as many of the following questions as you can. Call the properties directly for answers not available online. x. What is the rack rate for a “standard” room? x. What is included in this rate? x. What amenities are offered at this property? x. Are rates different on the weekend? Higher or lower? x. What other hotels are in the area? z Compare and contrast the properties you selected. Figure 2 -12