The rise of the sharing economy. SilverBirch Hotels is an example of a hotel management company that manages independent hotels and hotels operating under different major franchise brands, such as Marriott, Hilton, and Radisson (SilverBirch Hotels, 2015). If the hotel costs $125,000 per [room], the room has to rent for $125 per night on average and you need 60% to 70% occupancy to break even” (McDonald, 2011). (2012). In 2011, 14% of Canadian households owned an RV, with over 1 million RVs on the road in the country that year. Now that we have a sense of the building blocks of a typical hotel operation, let’s look at some trends affecting the sector. These can be grouped by any of the classifications listed in Table 3.1, such as size, location, or amenities offered. By subscribing, you agree to our privacy policy. Figure 3.13 Cafe Pacifica Restaurant 2013 Winter Menus by Pan Pacific is used under a CC BY 2.0 license. Chapter 4 explores this in more detail. The magazine Hotelier, available online and in eight annual print editions, is a resource relied on by many industry professionals across Canada. Retrieved from www.hotelschool.cornell.edu/research/chr/pubs/reports/abstract-16421.html, Boutique Hotel Association. Now that we have a better sense of the accommodation sector, let’s visit the other half of the hospitality industry: food and beverage services. This is a service offered by a management company to manage a hotel or resort for its owners. These events ... Owlgen is the source for the latest Fashion trends, Lifestyle, Health, Fitness, Parenting, Gadgets, Dating Tips, and Celebrity News, sex tips, dating and relationship help, beauty, and more. Another 300 private RV parks and campgrounds play host to a mixture of longer-stay residents and overnight guests. How many vehicle-accessible campsites are there in BC? Businesses must be flexible to meet the needs of their different markets and evolving trends. For more information, visit the BC Hotel Association website: www.bchotelassociation.com. (2014). Selecting a brand affiliation is one of the most significant decisions hotel owners must make (Crandell, Dickinson, & Kante, 2004). OTAs offer global distribution so that each hotel and chain can be available to anyone at the click of a button (Then Hospitality, 2014). Fairmont Empress hotel in Victoria purchased by Vancouver developer. Figure 3.3 JONETSUpanpac07 by Jonetsu.ca is used under a CC BY 2.0 license. Figure 3.11 Vicky Lee at Delta Burnaby Hotel by LinkBC is used under a CC BY 2.0 license. Write short notes on Hygiene, Habits and Fitness. “Chain” versus “independent” – A view from an operator of independent hotels. Figure 3.14 Airbnb by Gustavo da Cunha Pimenta is used under a CC BY-SA 2.0 license. They also highlighted the need to increase the operating hours and seasons of publicly funded campgrounds to match the private sector and to ensure continuity of service for guests (CNW, 2014). Owners have two main options for the structure of a management contract. Accordingly, accommodation is available everywhere and forms the foundation of … (2015b). Task 2.1 Analysis of the tourism industry – history, characteristics and importance of the tourism industry LO 2.1 – Describe the size, scope, growth and economic importance of the tourism industry As tourism and hospitality are linked, the history of both industries were covered in task 1.1. What is difference between the travel and tourism industry? Airbnb guests triple hurting Priceline, HomeAway. Introduction to Tourism and Hospitality in BC, “The Best Hotels and Resorts in Canada: 2014”, Camping and RVing British Columbia Coalition website, BC Lodging and Campgrounds Association website. As companies continue to innovate and compete to capture defined niche markets within each set, we can expect to see the continued expansion of specific concepts. Such diverse tourism opportunities will indeed bring about an extended variety of offerings in the accommodation sector. For the hotel management company, attaining occupancy rate targets is necessary to ensure that the balance of revenue is sufficient to cover the hotel’s operating expenses. These are: There are three categories of hotels available in India. (2013). According to Statista, tourism contributed over seven trillion dollars in 2016 to the global economy.About 60% of people travel for leisure that can include sightseeing, recreation, visiting or other non-business activities. Image … Back to the Big Picture: Globalization and Trends. The guest house is found in cities, towns and remote destinations. The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet new brand standards. The benefits of using online travel agencies (OTAs). Retrieved from www.accor.com/en/brands/brand-portfolio.html, Airbnb. These include United Kingdom, United … The position is varied: a concierge may be asked to book elusive theatre tickets, give directions to a local festival or recommend a doctor. This is another crucial one of the 5 different sectors of the hospitality industry. Canadian Lodging Outlook. This chapter explores the accommodation sector, and the Chapter 4 details the food and beverage sector. Accommodation©Ramakrishna Kongalla 2. (2014). Spotlight On: the BC Lodging and Campgrounds Association, The BC Lodging and Campgrounds Association (BCLCA) was founded in 1944 to represent the interests of independently owned campgrounds and lodges. These are—. Now choose from one of the following trends, and research it to answer the questions that follow: Accor. No matter what the ownership model, it’s critical for properties to offer a return on investment for owners. The impact of social media on lodging performance. Scott and Tina Visit the Pan Pacific Vancouver, Cafe Pacifica Restaurant 2013 Winter Menus, Next: Chapter 4. In essence, hospitality is made up of two services: the provision of overnight accommodation for people travelling away from home, and options for people dining outside their home. The sharing economy is a relatively new economic model in which people rent beds, cars, boats, and other underutilized assets directly from each other, all coordinated via the internet (The Economist, 2013). Are there any trends that are not listed above that you think should be added? Developers now anticipate that fractional ownership will not be used to finance new hotel builds in the future due to poor performance. Accor has four hotel brands that were recently redesigned: hotelF1, ibis budget, ibis Styles, and ibis. Table 3.4 provides an overview of some of the distribution channels that are available to hoteliers. to provide an overview of the structures and characteristics of the hotels, catering and tourism (HCT) sector and its general trends in and more specifically on the hotel and restaurant subsector which the industry quite often also describes as accommodation and hospitality (Chapter 1); Starwood has entered this category with a scaled down version of W with the new Aloft brand that debuted in Montreal in 2008 (Starwood Hotels, 2011). percentage of all guest rooms in the hotel that are occupied at a given time. Selling rooms online: the use of social media and online travel agents. The 2014 hospitality market Report. In most properties, the general manager or hotel manager serves as the head executive. The association produces an annual industry trade show and seminar series, and publishes InnFocus magazine for professionals in the trade. https://setupmyhotel.com/.../front-office-training/76-classification-of-hotels.html Read press releases, find out about upcoming events, and subscribe at the Hotelier Magazine website: www.hoteliermagazine.com. In 2014, national industry associations began to call on the government for taxation relief and marketing help to ensure this segment of the sector could continue to thrive. In some cases, such as in a luxury hotel, resort hotel, or an all-inclusive property, the guest services may represent a person’s entire vacation experience. (2011, April 12). Hotels remain the classic of the tourist accommodation, offering both room and board (breakfast, half board and board). The accommodation sector provides much more than tangible products such as guest rooms, beds and meals; service is also crucial. For example, hotels found close to, or even within, convention facilities are a great match for meetings and events, as well as the SMERF market (social, military, educational, religious, and fraternal segment of the group travel market). Reporting to the housekeeping supervisor, room attendants complete the day-to-day task of cleaning rooms based on standard operating procedures and respond to guest requests. Originally named for a “motorists hotel,” motels maintain a demographic target consisting of … Examples include the Fairmont Pacific Rim and the Rosewood Hotel Georgia. According to Travel Click (2014), same-day reservations are also on the rise. Retrieved from http://hotelanalyst.co.uk, Hotel Association of Canada. (2014, April 15). These usually offer a stay in natural surroundings and thus cater to tourists of different tastes and budgets. These terms and measurements allow hotel staff and management to track the success of the operation and to compare against competitors and regional averages. Banff Springs Hotel opened in 1888, and other hotels soon followed, including the Château Frontenac in Quebec City (1893), the Royal York in Toronto (1929), and the Hotel Vancouver (1939). Investors burnt in hotel condos, fractionals. Figure 3.7 Coast Bastion Hotel (Nanaimo) by Raul Pacheco-Vega is used under a CC BY-NC-ND 2.0 license. Now that we understand the classifications of hotel types, let’s gain a deeper understanding of the various ownership structures in the industry. First-class Hotels: These are also located in the big metropolitan cities and mid-sized cities and are a step down from the five star Deluxe Hotels. CNBC. The organizational structures of operations and the number of roles and levels of responsibility vary depending on the type and size of accommodation. Describe the main characteristics of a three star hotel. Revenue per available room (RevPAR ) is a calculation that combines both occupancy and ADR in one metric. These can also apply to smaller properties and businesses such as campgrounds — although in these cases several roles might be fulfilled by the same person. Examples of signature amenities include skiing and mountains, golf, beach and ocean, lakeside, casino and gaming, all inclusiveness, spa and wellness, marina, tennis, and waterpark. Personal care and hygiene are important to us as individual. It provides the opportunity for visitors to stay for a length of time to enjoy the locality and its attractions, while their spending contributes to the local economy. Table 3.2 outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveller segment. As it’s expected, the food and beverage industry is further sub-categorized into niches. The type of hotel is determined primarily by the size and location of the building structure, and then by the function, target market, service level, other amenities, and industry standards. Available at SSRN: ssrn.com/abstract=2366898 or dx.doi.org/10.2139/ssrn.2366898. Chapter 11. Case Study: Hotel for Dogs – Philanthropy and Media Coverage. Publicity is unpaid for communication, usually impersonal and appearing to emanate from sources other than the marketeer. Van Horne was a pioneer of tourism, and like Thomas Cook in the UK, he saw the potential for tourism that was made possible by the railway. Note that the top two listings include units and revenues earned outside of Canada as these are international companies. A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements. The term budget hotel is challenging to define, however most budget properties typically have a standardized appearance and offer basic services with limited food and beverage facilities. Business and leisure travelers continue to book more hotel reservations online. It features recent news releases and articles and a free e-newsletter distributed three times per week. The museums are repositories of great cultural wealth. The general industry guidance for hotels using OTAs is to ensure that this distribution channel is part of a broader sales strategy, coupled with sound customer relationship management practices. Mention the types of Publicity. Bil. Room audits and inspections are completed regularly to ensure standards are met (go2HR, 2015b). It is determined by dividing the total room revenue by the number of rooms sold. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to operate a business and become part of a chain of hotels using the franchisor’s hotel brand, image, goodwill, procedures, controls, marketing, and reservations systems (Rushmore, 2005). The word motel, used less commonly today, comes from the term “motorist’s hotel,” used to denote a hotel that provides ample parking and rooms that are easily accessible from the parking lot. Provide examples of each. Try to name at least two. Online travel agents (OTAs) are a valuable marketing and third-party distribution resource for hotels and play a significant role in online distribution (Inversini & Masiero, 2014). You can read the rest of the list at, “The Best Hotels and Resorts in Canada: 2014”: www.cntraveler.com/gold-list/2014/americas/canada. The general manager’s role is to provide strategic leadership and planning to all departments so revenue is maximized, employee relations are strong, and guests are satisfied. Across all ownership models, most properties have operational aspects in common. The man at the beginning of his existence roamed about the surface of the earth in the search of food, shelter, securities, and better habitat. What market is it helping to serve? Smaller independent hotels that do not have the global marketing and sales resources of a larger chain are able to gain exposure, sell rooms, and build their reputation through online guest ratings and reviews. The budget brands owned by Accor are an example of a shift toward the budget boutique hotel style. Retrieved from www.campingrvbc.com/about/, Diffen. These include having less than 100 rooms and featuring a distinctive design style and on-site food and beverage options (Boutique Hotel Association, n.d.). For more information, or to subscribe, visit the 4Hoteliers website: www.4hoteliers.com. (2015). As the Canadian and BC tourism brands are closely tied to the outdoors, and these are two options that immerse travellers in the outdoor experience, it is no surprise that these two types of accommodation are popular options. Executive housekeeper profile. Amongst other things, it is beneficial to the tourists, the hotels and the tourism industry. Airbnb is the most prominent example of this model. The state of accommodation does not represent a … 5. If a hotel or chain has an exceptional product and service, OTAs share guest ratings, which can increase the number of reservations and referrals. Chris Anderson at the Center for Hospitality Research at Cornell University analyzed 1,720 reservations made on the websites of six InterContinental Hotels brands (2012). The hospitality industry boasts many characteristics that help set it apart from other businesses. The chief engineer is also responsible for preventive maintenance and resource management programs. Across the country 3,000 independently owned and operated campgrounds welcomed guests for camping in RVs and in tents that year (CNW, 2014). On a piece of paper, list as many types of accommodation classifications (e.g., by size) as you can think of. Retrieved from www.hoteliermagazine.com/the-2014-hospitality-market-report/, Inversini, A., Masiero, L. (2014). (2015a). Division heads oversee various departments including managers, administrative staff, and line-level supervisors. 7 Most Trending Technologies of Last and Current Decade. (2015) Management and franchises. About five thousand year ago, changes in climate, dwindling food and shelter conditions hostile invaders made the people leave their homes to seek refuge elsewhere like the Ar… Tourism Accommodation 1. Why are these important accommodation trends today. Table 3.5 was generated by a review of press releases (Hotel Analyst, 2014), and it provides some examples of mobile technologies and customized apps used by hotel companies. Figure 3.9 Hotel Georgia, Rosewood Hotel Vancouver by Rishad Daroowala is used under a CC BY-ND 2.0 license. (2015c). Seven national parks within the province contain an additional 14 campgrounds, and the BC Recreation Sites and Trails Branch manages more than 1,200 backcountry sites including campgrounds and other facilities. As a condition, accommodation is the recognition and acceptance of a set of relationships that define the status of a person in the group or of the group in a more inclusive social organization. In Canada, approximately 25% to 35% of visitor spending is attributed to accommodation, making it a substantial portion of travel expenditures. Anderson found that every booking made on Expedia attracted three to nine reservations to the hotel’s site, suggesting the commission a hotel pays an OTA is a cost-effective expense, as it generates additional revenues. Retrieved from www.go2hr.ca/career-profiles/director-sales-and-marketing-hotel, Hotel Analyst. The British were the pioneers in establishing the museums in India around the 19th ... Hygiene: How would you structure this differently from a larger full-service hotel? Average daily rate (ADR) is a calculation that states the average guest room income per occupied room in a given time period. Travel is as old as mankind on the earth. Several terms and formulas are used to evaluate revenue management strategies and operational efficiency: Occupancy is a term that refers to the percentage of all guest rooms in the hotel that are occupied at a given time. Sos. A concierge serves the needs of guests in hotels, resorts and other accommodation facilities by providing information and special services to enhance guests visits. The history of Canada’s grand hotels is also the story of Canada’s ocean liners and railways. This hotel is saving lives by matching guests with rescue pups. Managing fractional ownership can be very time consuming for hotel owners or management companies as each hotel unit can have up to eight owners. (2015). Reporting to the director of rooms, the front office manager, sometimes called the reception manager, controls the availability of rooms and the day-to-day functions of the front office. These are often found in so-called “off the beaten trek” destinations and are meant exclusively for the tourists. How should lower-end hotels and hotels that do not cater to business travellers respond to increased competition from rentals enabled by firms like Airbnb? Large full-service hotels typically have a reservations department, and the reservations manager reports directly to the front office manager. Der. The products/services in the tourism and travel industry are consumed as they are produced 11.9K views Both of Canada’s railway companies established hotel divisions: Canadian Pacific Hotels and Canadian National Hotels (Canada History, 2013). Chapter 5 provides more in-depth information about the importance of the recreation sector to BC. Before we turn to examples of specific operational roles, let’s take a brief look at the importance of guest services, which will be covered in full in Chapter 9. This is a new concept in Tourism accommodation in India. The extent to which the reservations agent position is resourced will vary depending on the hotel’s target market and business strategy. In addition, resorts also offer secondary experiences and a leisure or retreat-style environment. Retrieved from www.diffen.com/difference/Hotel_vs_Motel, Economist, The. 4Hoteliers compiles world news for hotel, travel, and hospitality professionals. Hostels. In order to understand this large and significant sector, we will explore the history and importance of hotels in Canada, and review the hotel types along with various ownership structures and operational considerations. An example of an independent hotel is the Wedgewood Hotel and Spa in Vancouver, founded by Eleni Skalbania, and currently co-owned by her daughter Elpie (Wedgewood, 2015). School of Management Research Paper No. Ten to 15 years ago online travel agents were a major innovation that changed the distribution and sale of rooms. Table 3.3 indicates the top five hotel companies in Canada based on revenue (Hotel Association of Canada, 2014). Today, there are a number of hotel types, which can be classified in multiple ways. Retrieved from www.fastcompany.com/3029758/how-a-startup-grows-up-lessons-from-airbnbs-openair-summit. The technology company The Hotels Network is innovating extensively in this area and helping thousands of hotels worldwide to personalize the website user experience and drive more direct booking conversions. (2015). In the first quarter of 2014, 13.2% of hotel bookings for individual leisure and business travellers (TravelClick, 2014) were made through OTAs (for example, Expedia, Hotels.com, Kayak.com). For more information, visit the Camping and RVing British Columbia Coalition website: www.campingrvbc.com. Thus in India we have variety of tourist accommodation that puts the purpose of visit and budget of all people. Accommodation is one of the basic needs for any tourism activity. Figure 3.1 Shot from balconey by Alan Wolf is used under a CC BY-NC 2.0 license. (2015, February 2). They are categorized by certain international standards which include a given number of restaurant, a particular size of lobby, business centre facilities, a swimming pool etc. (2014). In essence, hospitality is made up of two services: the provision of overnight accommodation for people travelling away from home, and options for people dining outside their home. Spotlight On: The Hotel Association of Canada, The Hotel Association of Canada (HAC) is the national trade organization advocating on behalf of over 8,500 hotels. Franchise fees can be substantial and a franchisee must be willing to adhere to the contractual obligations with the franchisor (Migdal, n.d.; and Rushmore, 2005). (2012). (2013). As we learned in Chapter 2, travel in Europe, North America, and Australia developed with the establishment of railway networks and train travel in the mid-1800s. Crandell, C., Dickinson, K., & Kanter, G. I. The railroad. Non-Star Hotels: These are found in almost all tourist attractions. In all cases, operators and employees must recognize and understand guest expectations and also what drives their satisfaction and loyalty. Budget hotels were first developed in the United States and built along the interstate highway system. How many independent campgrounds are there across Canada? Direct spending on overnight stays was $16.7 billion, and the year’s average occupancy rate was forecast at 64%. [PDF] Retrieved from www.hotelassociation.ca/forms/Hotel%20Industry%20Facts%20Sheet.pdf, Hotelier. Why do you think this trend has emerged? Retrieved from www.thenhospitality.com/blog/the-benefits-of-using-online-travel-agencies-otas, Travel Click. When researching a franchisor, the cost of the franchise must be carefully considered. distinctive characteristics of accommodation. Fairmont Empress hotel in Victoria purchased by Vancouver developer. Figure 3.15 Waiting at baggage claim by hjl is used under a CC BY-NC 2.0 license. (2014). In 2014, 27% of online bookings in leading regions in the United States were made by consumers using their mobile devices and tablets (Travel Click, 2014). Franchise fees typically include an initial fee paid with the franchise application, and then continuing fees paid during the term of the agreement. As broader societal trends continue and morph, they will continue to impact the accommodations marketplace and consumer. Catering and conference events and services range from small business meetings to high-profile conferences and weddings. A hotel earns $3,000 on 112 rooms. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. Increase in motor traffic saw the rise of the general manager or hotel manager serves as head! 2008 ( Western Investor, 2012 ) ’ t get towels or toiletries.. 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