ACCOMMODATIONS

Prepared by: JANNA ALEA R.

MAGTURO
 HISTORY
Since the beginning of history, there has been some form of lodging industry.
The lodging industry developed because of the need to provide accommodations to
travelers. The Industrial Revolution and the development of spas helped the growth
of the hotel industry because of the demand for accommodations of people who
migrated to the cities to work. The development of the railways led to the
establishment of hotels near the railroad station. The introduction and development
of the automobile industry led to the building of roadside hotels or motels. In the
1960s, resort hotels were developed due to the popularity of the sun vacation. A
recent development is the establishment of hotel chains and the overseas expansion
of these chains.
 HISTORY

A hotel organization is large and complex. It has seven major divisions,

namely: personnel, engineering and maintenance, accounting, security,
food and beverage, marketing and sales, and room division. Hotels are
usually operated by people who own the property.
 TYPES OF ACCOMMODATIONS

• Hotels • Tourist Inns

• Motels • Apartment-hotels
• Resort hotels • Health spas
• Pensions • Private homes
• Paradors • Hostels
• Condominium hotels • Time-sharing
• Campgrounds
• Bed & breakfast
 HOTELS
Hotels can be a 10-room boarding house or a
building that has a thousand or more rooms,
convention and meeting facilities, recreation
facilities such as swimming pools and tennis courts,
24-hour room service, with several restaurants and
bars and various types of entertainment.

MOTELS OR MOTOR HOTELS

Normally, motels only offer rooms only and free
parking to guests.
These are often found along busy highways and
cater primarily to transient and cost-conscious
travelers.
 RESORT HOTELS
Resort hotels are intended for vacation travelers.
These hotels range from budget to luxury and can
accommodate these travelers and even convention
delegates.

PENSIONS
Pensions are found principally in Europe. These are
usually family-owned accommodation facilities.
 PARADORS
Paradors are unique to Spain. These are generally
old castles, convents, or monasteries that have
been converted into hotels by the government and
are operated by the government.

CONDOMINIUM HOTELS
These are often hotels with apart (condominiums)
instead of basic rooms. The condominium unit are
sold by the hotel developers to individuals who are
given a title to the physical real estate.
 CAMPGROUNDS
Camping is a popular form of overnight
accommodation in both Europe and North America.
In North America, there are at present more than
20,000 campgrounds, some of which are owned by
hotels.

BED & BREAKFAST

A form of lodging which originated in Europe. This
form of accommodation provides a bed for the
night and breakfast the next day.
 TOURIST INNS
Lodging establishments that cater to transients.
These do not normally meet the minimum
requirements of an economy hotel.

APARTMENT-HOTELS (APARTELS)
Apartment hotels are buildings which contain
several independent and furnished or semi-
furnished apartments.
 HEALTH SPAS
Health spas are hotels and resorts which cater to
people who go to spas or mineral springs for
medical treatment or weight reduction. The idea of
visiting health spas originated in Europe.

PRIVATE HOMES
The private home is the earliest form of
overnight lodging for travelers.
It provides lodging to tourists who cannot be
accommodated in hotels and motels during
peak vacation periods.
 TIME-SHARING
Time-sharing is a more recent unique type of
accommodation. Time-sharing is the selling of
vacation lodging, usually condominiums for a
specific week or weeks over a given number of
years.

HOSTELS
Hostels provide basic amenities such as bunk
bed and a commonly shared toilet and
bathroom. The travelers provides his her own
bedding.
 CLASSIFICATION OF HOTELS

There are different ways of classifying hotels, such as location, type of

guest, and price. According to location, hotels may be center-city,
suburban, airport, or highway.
Based on guest type, hotels are classified as commercial, conventions, or
resort.
According to price, hotels are categorized as economy, standard, first
class, or deluxe.
 RATING SYSTEMS

Good, better than average Very good Excellent

Outstanding One of the best in the

country
 ORGANIZATION OF THE
LODGING HISTORY

• The accounting division handles the financial activities of the operation

which include payment of bills, sending out statements, payroll, and
compiling monthly income statements
• The engineering and maintenance division makes the necessary repairs and
implements the hotel's energy management program.
• The accounting division handles the financial activities of the operation
which include payment of bills, sending out statements, payroll, and
compiling monthly income statements.
 ORGANIZATION OF THE
LODGING HISTORY

4. The security division provides protection for both employees and guests.
5. The food and beverage division is responsible for the food and beverages
that are served.
6. The marketing and sales division is responsible for selling the rooms and food
service. It is involved in advertising, development of promotional materials,
and making direct contacts with prospective clients.
7. The room division is responsible for the frontdesk, telephone, reservations,
and housekeeping department.
 HOTEL TERMINOLOGY

Room rates for hotels are quoted in terms of what meals are included in the price.
European Plan (EP) means that there are no meals included. This is the most commonly
used room rate quoted by North American hotels. American Plan (AP) means that
breakfast, lunch, and dinner are included in the quoted price. In Europe, AP is known as full
pension. Meals are usually a fixed menu with little or no choice.
Modified American Plan (MAP) includes breakfast and dinner but not lunch or breakfast
and lunch but not dinner. In Europe, this is known as demi pension.
A continental breakfast is offered by most European hotels and is included in the room
rate. In Europe, this type of plan is known as hotel garni or pension garni which consists of
rolls, coffee, and sometimes juice.
 HOTEL TERMINOLOGY

The Bermuda Plan (BP) is offered by hotels in Bermuda and some other places.
It includes both a room and a full English or American type of breakfast. Bed and breakfast
hotels operate on a Bermuda Plan in Britain and the United States and on continental
breakfast plan in continental Europe.
 HOTEL PROFITABILITY

Room Occupancy
A simple measure of a hotel's profitability is its room occupancy. It is obtained by dividing
the number of rooms occupied by guests on any night by the number of rooms in the hotel
and by multiplying the result by 100 to determine the occupancy on a percentage basis. For
instance, if a 125-room hotel has 75 rooms occupied on a Particular night, its occupancy
will be:

FORMULA
(No. of occupied rooms divide total no. of rooms) x 100
 HOTEL PROFITABILITY

Room Occupancy
Occupancy can also be determined for a week, a month, a year, or any other period of
time. In this case, the numerator is the number of rooms occupied for that period and the
denominator is the number of rooms available during that period, that is, the number of
rooms in the hotel times the number of days in the period. For example, if we want to
know the occupancy for a week in a 125-room hotel in which 463 rooms were occupied
during that week, the occupancy percentage would be:

FORMULA:
(no. of occupied rooms divide total number rooms for the weeks) x 100
 HOTEL PROFITABILITY

Double Occupancy Rooms

Occupancy percentage is not usually the best measure of marketing success for a hotel
because it does not show whether the revenue is being maximized. Whether a room is
occupied by one person or by two persons, the occupancy percentage will not change, but
the revenue obtained will be changed. It is for this reason that hotels determine the
occupancy and the double occupancy rate which is the number of rooms occupied by more
than one person.
Double occupancy is determined by dividing the number of guests accommodated during
a certain period by the total number of guest rooms during that same period.
For example, if 463 rooms were occupied by 713 guests during a week, the double
occupancy is:

FORMULA:
(no. of guests divide total number of guests)
 HOTEL PROFITABILITY

Average Rate per Room Occupied

Another way of measuring maximization of revenue is the average rate per room occupied.
The average rate will increase if more expensive rooms are sold or if more rooms are
double or triple occupied. The average room rate is obtained by dividing the revenue for a
period by the number of rooms occupied during that period. For example, if a hotel had
463 rooms occupied during a week and a room revenue of $37,640 for that week, the
average room rate is:

FORMULA
(Room revenue divide no. of rooms occupied)
 HOTEL PROFITABILITY

Average Daily Rate per Guest

Another useful statistics is the average daily rate per guest. This is obtained by dividing
total room revenue for a period by the total number of guests accommodated during that
period. For instance, if the total revenue for the week was $65,520 for a hotel occupied by
1,050 guests, then the average daily rate per guest for the week is:

FORMULA
(Total revenue divide no. of guests accommodated)
 AVERAGE LENGTH OF STAY

To maximize revenue and increase room occupancy, hotels try to increase the
length of stay of customers through advertising and other marketing
methods. If customers can be motivated to stay an extra day or two, this will
mean more revenue for the hotel
 BREAKEVEN POINT

Hotels are often interested to know their breakeven point. It is that point at
which a business will make neither a profit nor a loss.
Fixed costs are those that stay the same regardless of the volume of business.
Examples are management salaries, interest, depreciation, insurance, property
taxes, mortgage payments, amortization, and physical plant maintenance.
Contribution margin is defined as the average room less the variable costs of
having a room occupied. Variable costs are those that change according to the
number of guests in a hotel. The variable costs for a hotel room are primarily
the costs of housekeeping such as maid wages, linen, laundry, and supplies.
 BREAKEVEN POINT

For example, if the fixed cost of a 125-room hotel is $1,950 for a year, its
average room rate is $80, and the variable cost pet room occupied is $20, its
breakeven point would be:

FORMULA
FIXED COSTS DIVIDE (AVERAGE ROOM RATE - VARIABLE COST PER ROOM)
 BREAKEVEN POINT

The 32,500 rooms to be occupied during the year can be converted into an
occupancy figure as follows:

FORMULA
BREAKEVEN POINT IN ROOMS divide (NO. OF ROOMS x NO. OF DAYS IN A
YEAR)
 ACCOMMODATION RESERVATION

Many large hotels have computerized reservation systems. However, despite

these systems, overbooking still occurs. Overbooking is selling more rooms than
the actual available rooms. Hotels do it for a reason. If hotels book only to
capacity, they would often end up with empty rooms because of "no-shows" or
people who do not advise that they want their reservations cancelled. Hotels
know from experience that there is a no-show percentage that can be
compensated by overbooking. However, the numbers do not always work out
correctly. The result is disappointed customers and negative publicity.
 REGISTRATION CARDS

Accommodation establishments use the guest registration card as a marketing

tool. A guest registration card provides information about the guests such as his
or her name, address, geographical origin, and other facts. This information can
be used to produce a direct mail list which is used for sending future
promotional material.
The list can also be expanded to include the names and addresses of clients
who have made reservations, canceled them, and even customers who made
reservations but never arrived.
 HOTELS & AIRLINES

At present, there is a natural link between airline companies and hotels. This is
due to the changed nature of transportation. One of the first links was Pan Am
which tied in with the International Hotels in the 1940s,
According to Lane (1994), there are three major reasons why airline companies
link with hotels. These are:
• Their desire to protect insisting business and develop future business, thus
increasing their profits
 HOTELS & AIRLINES

2. The expectation that hotel ownérship will boost tourism development in their
home countries; and
3. The desire to expand national culture.
Today, there are many airline-hotel links such as KLM Hilton International, Air
France and Meridian Hotels, Air Lingus (Ireland) and Dunfey Hotels, and Japan
Airlines and Nikko Hotels. The links between hotels and airlines are not always
formed by ownership or merger. They can also be partial ownership or a
working agreement.
 FREQUENT FLYER LINKS

• Many of the frequent flyer programs of airlines are also linked to hotel
usage. This means that airlines grant airline passengers extra mileage points
for staying in participating hotels.
 ACCOMMODATIONS PROMOTIONS

• Most accommodation establishments promote their properties to members

of the travel trade as well as to tour wholesalers and travel agencies. They
provide the travel trade with printed promotional literature and invite them
as guests on familiarization trips. They offer discounted room rates to
representatives of the travel trade when they stay in hotels but are not on a
familiarization trip. Large hotel chains install promotional booths at travel
trade expositions and advertise in travel trade publications.
• Accommodation establishments also use newspapers for promotion.
 ACCOMMODATIONS PROMOTIONS

• Resort hotels advertise on magazines, on television, and by direct mail.

Some resorts give posters to travel agencies for window displays. Resorts
often get free publicity when they have stories to tell the media.
THANK
YOU