The Lodging Industry
Understanding Lodging
The lodging
industry in the
United States
has always been
strongly
influenced by
changes in
transportation.
Mid-1600s



Stage coach routes established
Coaching inns became popular
resting places for travelers
Expected a bed and a meal for the
evening
1794-1828




1794 City Hotel in
New York City opens
The first building in
the US designed
specifically as a hotel.
1828 The Tremont
House, first grand
hotel, was built in
Boston.
First hotel to offer
private rooms with
locking doors.
The Railroad


Inns, taverns and foodservice facilities
located near railway stations began to
grow.
Famous resorts because of the railway
include Hotel del Coronado near San Diego
and the Greenbrair Resort in West
Virginia. Yellowstone was also a railway
resort.
Conrad Hilton



A banker in New Mexico purchased
his first hotel around 1900. It was in
Cisco Texas.
This began his chain of hotels.
Other hotels around this time: Ritz
Carlton in Boston and the Plaza in
New York City.
1950’s


Increased availability and popularity of the
automobile and a new interstate freeway
system made cross country vacations a
popular option.
Motels sprang up along highways offering
travelers a place to bathe, sleep and eat.
The Airline Industry


1958 commercial airlines became popular.
Builders moved toward airports for hotels
and restaurants.
Lodging Operations Organization




Front of the house: employees who have
direct contact to the public
Back of the house: supporting operations,
behind the scenes
OR
Administrative Departments: Manage
business (accounting, human resources,
training, marketing, sales)
Service Departments: responsible for
serving guests directly
Administrative Departments




General Manager (GM)
Accounting and
Financial Management
(Controller)
Human Resources
Marketing and Sales
Service Departments





Front Office
Housekeeping
Engineering and
Facility
Maintenance
Security
Food and Beverage
(F & B)
Leisure Travelers



On vacation
Shopping, fine dinning, sightseeing,
sports events, relax
May provide activities for children,
on-site recreation or health facilities
Business Travelers



Looking for well lit work spaces,
telephones, modems, copiers, fax
machines.
Meeting facilities
24 hour service - valet parking,
secure lodging
Amenities








Restaurants
Parking Garages
Boutiques
Barber shops
Dry Cleaners
Florists
Swimming pools
Room service








Cable Television
Pay per view
Bathrobes
Gift shops
Kitchens
Computer modems
Spa
Recreational
activities
Types of Properties







Full Service
Luxury
Economy
Mid-priced
All-suite
Resorts
Bed and Breakfast
Terms to Know










Folio- The written record of a hotel guest's account.
CRS Central Reservation System- A central
reservation system (CRS) is a computerized system that
stores and distributes information on a hotel, resort, or
other lodging facility
Room Inventory- Total number of rooms a lodging
property has to sell
Block- In a hotel, a number of rooms set aside or
reserved for a group.
Rooms Forecast- Analysis of anticipated room inventory
that is based on past room sales; allows front office
manager to determine projected revenues and make
decisions about rates and reservations.
No-Shows- A passenger who doesn't arrive for a flight or
a hotel guest who reserves but never arrives.
Overbook- The practice of taking more reservations than
there are seats, rooms, or space in the expectation that
no shows will bring the number of reservations actually
used below maximum occupancy.
Understays- Guests who leave before their anticipated
date of departure
Yield Management- The practice of adjusting prices up
or down in response to demand in order to control yield.
This process is usually computerized.
Rack Rate- Highest rate category offered by a lodging
property.
Hubbart Formula

Helps managers set rates
Operating expenses + Desired return on investment-Other Income
_______________________________________________________
Projected room sales
=
Room Rate