NEHRU ARTS AND SCIENCE COLLEGE DEPARTMENT OF CATERING SCIENCE & HOTEL MANAGEMENT E-LEARNING CLASS SUBJECT UNIT – 1 SYLLABUS: : II B.SC CS & HM : TOURISM MARKETTING MANAGEMENT Introduction to the Hotel Industry : Classification of Hotels as per location, size, clientele, length of stay, heritage hotels, all suite hotels, time share, condominiums, casino hotels, convention hotels, conference hotels, star hotels. The accommodation product – Type of guest room – as per number and size of beds, décor, room size and view, executive floor, presidential suites. Rates – Room rate, rack rate, corporate rate, commercial rate, airline rate, group rate, children rate, package plan rate, back to back series rate, government rate, weekend rate, half-day charges. Meal Plans – EP, CP, AP, MAP Type of Hotel guests – Pleasure travelers, DFIT, FFIT, GIT, Special intrest tours, incentive tours, back to back series tours, business travelers, CVGR, convention and conference guests. The Front Office Department – Functions and components of front office department. Organizational chart of a front office department (Large, Medium and Small). Attributes of front office staff Part – A: 1. The first hotel were start in Purposes of guest is City Hotel in New York in 1794 2. The meaning of Hospitality is Reception And Entertainment Of Guests, Visitors, Or Strangers With Liberality And Good Will. 3. DFIT refers to – Domestic Free Individual Traveler. 4. FFIT stands for - Foreign Free Individual Traveler. 5. GIT abbreviation – Group Inclusive Tours. Part – B: 1. What do you mean by Accommodation product The sale of rooms is one of the main products to be provided by a hotel; it is also very often the principal source of hotel revenue. It must be noted, however, that the accommodation product consists of more than a room with a bed. A guest purchasing Page 1 of 14 accommodation also receives other facilities and benefits, such as ambience, décor and security. While all hotels provide accommodation services for their guests, the type of facilities and benefits associated with that service can often differ greatly, even within the same hotel. The Accommodation product therefore does not just consist of a guest-room – single or double – but also the additional facilities and services which are applicable to that room. For example, does the room have a sea view? Is there a mini-bar? Are there in-house movies? Can a guest dial direct from the room? Is there room service? All these services, facilities and amenities may be included in the accommodation product of a hotel. Since the accommodation product normally cannot be examined before purchase, guests are reliant upon the front office staff to be able to describe the product to them accurately. It is, therefore, particularly important for the front office staff to have full knowledge of what is included in the accommodation package of a hotel. 2. How do you measure the rates for Room : The room rate refers to the price at which a hotel sells its rooms. The type of accommodation, size, décor, and view from the room will influence the room rate charged to the guest. As the guest’s needs for accommodation become more sophisticated, there is an increase in the variation of room rates. Many hotels have room rate tariffs which fluctuate according to the class of business, time of year, and services included. Some commonly used room tariffs are illustrated in the table below. Standard room rack rate The standard rate for the room, with no meals, discounts or reductions Corporate rate The standard rate charged for executive personnel from businesses and industrial corporations, whi are regular guests Commercial rate The rate which is agreed upon by a company and hotel for all individual room reservations Airline rate The rate negotiated between the individual airline and the hotel, based on the volume of business the hotel gets from the airline Group rate Specific room rate for group, agreed by hotel and group in advance Children rate As either free of charge, or at a Page 2 of 14 nominal rate if they share the same room as their parents. Each hotel has an agreed age limit for the child up to which this rate applies. Package plan rate The rate includes a compete package of guest’s stay like travel, food, tour plan etc. Back to back : Series rate Where a company or travel agent books a series of rooms. As one group checks out of their rooms, another group will check into them after cleaning Government rate Normally less charged for the government meetings and official stays, sometimes not charged Weekend rate Rate applicable for leisure hotels and clubs- higher than the normal rate Half-day charges Rate which charged for a guest who stays less than a day – transit hotels 3. Explain in details about the Types of Guest-Rooms Hotel guest-rooms can be classified in a number of ways. For example, one way is according to the number of size of beds in the room; others are by the décor, the room size or the view. In addition, some hotels may even offer special types of accommodation for particular types of guest, e.g. the executive floor for business people and presidential suites for VIPs. Number and size of beds per room Guest-rooms can be classified according to the number and size of beds in a room. These are commonly known as; Single rooms (With a single bed), Twin rooms (With two single beds), Double rooms (With one large bed), Suites, i.e. two distinct areas, one for sleeping and one a lounge area Number and sizes of beds Types of No.of beds room per room Size of bed No.of people per room Single 3’0” 1 Page 3 of 14 1 Twin 2 3’0” 2 Double 1 4’6” 2 Queen 1 5’0” 2 King 1 6’0” 2 Suites differ considerably from one hotel to another and from one suite to another in the same hotel. Sometimes the lounges and bedrooms may be separated, whereas in the case of studio suites and bedroom is or partitioned from the living area. Very often suites have a king-size double bed, Décor, room size and view Hotel guest-rooms amy be grouped into standard, superior or deluxe rooms according to their décor, i.e. the furniture and fittings, as well as by size and situation. Table below is an example of how such a categorization of guest-room may be made. 4. Write a short note on :- Executive floors and presidential suites In some hotels, special types of accommodation may be provided for a particular type of customer. For instance, if the market of a hotel is mainly business travelers, then a section of the accommodation may be used exclusively as executive floors. The standard and style of the rooms and the facilities offered, as well as services provided, are suited to the special needs of the business clientele. For example, executive floors may provide separate check-in desks, meeting-room space and in room fax facilities, cellular phones and sometimes separate lounge and bar areas. To accommodate the wishes of the growing numbers of people who do not smoke, many hotels now have non-smoking floors; this prevents furnishings from absorbing any tobacco smells, causing a staleness of odour in the room. Similarly, to look after the special needs of female executives, numbers of hotels have women-only rooms. The ‘presidential’ type of suite is a special form of accommodation geared to the needs of VIPs and wealthy people. It is usual for the rooms to be very much larger than a normal room. The furnishing and fixtures are both exotic and expensive and the services offered are often unique to that suite of rooms. Page 4 of 14 5. Explain about the functions and components of front office department : The guest Cycle The main function of the front office department is to support and facilitate guest transactions and services. Therefore, the operation of the front office department is largely determined by the type and number of guest transactions which take place during the different stages of a guest’s stay. A typical hotel stay can be divided into four distinct phases, namely: Pre-arrival, arrival, occupancy, departure These four phases constitute of guest cycle, as mentioned in below table. In each phase of the cycle there are certain standard transactions which occur between the guest and the hotel. Guest transactions/Services Phase Transaction/Services Interacting person Pre arrival Reservations Reservation Office Arrival Doormen and porters Registration, Room assignment, Issuing of keys, baggage handling Reception/Bell boy/Mail and information Occupancy Currency exchange, safe deposits, maintaining guest accounts, mail and information, telephone calls, transportation Departure Front desk cashier/Telephone operator/Mail and Information/Bell boy Check-out, bill settlement, Front office cashier/Bell baggage handling, transportation boy/travel desk As mentioned in the above table, there are different types of guest transactions and services which are involved in the different phases of the guest cycle. These services and transactions are handled by the front office department. Page 5 of 14 Part – C: 1. How do you classified the hotels and explain in details about that. Hotels may be categorized depending up on the factors such as: 1. Locations 2. Number of rooms 3. Type of plan room rates that are quoted 4. Type of clientele 5. Length of guest stay 6. Facilities that it offers Categorization by locations Downtown Hotel: It is located in the heart of the city within a short distance of the center, shopping areas, theatres, public buildings, etc. rates in these hotels are normally high due to their location advantage and also due to the fact that the rate of return on investment (ROI) computed on these capital intensive hotels is substantially high. Normally business clientele prefer such hotels. Suburban Hotel: Located in the suburbs, it has an advantage of quieter surroundings. Rates quoted are moderate and low. Such hotels are ideal for budget travelers and also organizations who find the quiet setting ideal for conferences, seminars, educational programmers, etc. Resort Hotel: This type of hotel located in the hills or art beaches. It is mainly patronized by vacationers. Basic facilities are provided and the rates offered are often on American plan, i.e. Room plus all meals included Inns: They are smaller in size with modest board and lodging facilities. They may be located anywhere within or outside the city. They are the forerunners of the modern motel. Categorization by number of rooms: The capacity of a hotel in terms of the number of rooms is a yardstick for the categorization at the hotel by “size”. Hotels with 25 rooms and less may be termed “small”. Those with 25 to 100 may be called “medium”. Those with 101 -300 are called “Large”. Hotel with over 300 rooms which are very common these days may be termed as “very large”. Categorization by type of plan: Page 6 of 14 Hotels are categorized according to the type of plan which they offer. We thus hotels on European plan, American plan, Continental plan and Modified American plan. These plans are decided by the hotel on a variety of factors including the type of clientele, length of stay and average customer preference. Categorization by type of clientele: We often hear in hotel parlance, the terms such as group hotel, commercial hotel, family hotel, etc. this categorization is based on the type of patronage. Group hotels cater to groups and thus their rates would be on American plan. Commercial hotels cater to mostly businessman and are on European plan. A family hotel would be again be on American plan. Such hotels are normally situated in resort cities. Categorization by length of guest stay: This categorization of hotels further be divided into three sub-groups: (1) Transient hotels where a guest can register for a day or even less (airport hotels could be termed thus) (2) Residential hotels where guest stay for a minimum period of one month the hotel signed a detailed lease with the customer (3) Semi-residential hotels which incorporate the features of both the transient and residential hotels. 2. Write in details about the various types of hotel and their types, size and character. Casino Hotels: The focus in this type of hotels is on gambling and provision of casino. Casino hotels are not seen in India but are very popular in America, particularly in Las Vegas – Neveda. Top artistes come to hotel and give their life performances and entertain the guests. These are high class hotels with luxurious rooms and other top class services and amenities. Casino hotels are known primarily for the gaming facilities they offer despite the fact that the guestrooms and food and beverage operations may be luxurious. Casino hotels attract guests by promoting gaming and headliner entertainment. They provide specialty restaurants and extravagant floor shows and may offer charter flights for guests planning to use the casino facilities. Target markets are distinctly defined groups of people which the hotel hopes to attract or retain as its guests. Based on their target markets hotels may be classified as commercial hotels, casino hotels, resorts etc. Commercial hotels: (Star Hotels) Target Market : Mostly corporate business travelers. Tour groups, individual tourists and small conference groups also patronize these hotels. Location : Located in the heart of the city or business district. Reservation lead time: 2-3 days to a maximum of a week Page 7 of 14 Basis of charging room tariff: 12 noon check-in and check-out system Duration of guest stay: usually not more than 2 - 3 days Facilities provided: Most commercial hotels have conference rooms, guestroom suites and banquet meal service. They may offer uniformed services as well. Swimming pools, health clubs, tennis courts, saunas and jogging areas may also be provided. Resort Hotels Resort hotels offer breathtaking scenery and a leisurely and relaxed atmosphere that sets the apart from the other types of hotels. Target Market : Holiday makers, vacationers Location : In the mountains, on an island, or in some other exotic location away from crowded areas. Reservation lead time: varies from a few weeks to even unto a year in advance Basis of charging room tariff: Most of these hotels use the 12 noon check-in and check out system whilst some prefer the 24 hrs check in and check out system Duration of guest stay: Usually 1-2 weeks. Facilities provided: The recreational facilities provided are extensive. Most resort hotels provide extensive food and beverage services. They also provide special activities for guests such as golf, horseback riding, nature hikes etc. Airport Hotels Target Market : Business clientele, airline passengers with overnight travel layovers or canceled flights, and airline personnel. Location : In proximity to airports Reservation lead time: Most guests are walk ins and hence the lead time may be 1-2 days to zero. Basis of charging room tariff: These hotels are ideal candidates for the 24 hrs, check in and check out system but most prefer using the 12 noon check in and check out system as it is more lucrative. Duration of guest stay: Ranges from a few hours to a day or two. Facilities provided: The courtesy van facility between the hotel and airport is a facility seen in almost all airport hotels. Conference rooms are a feature added to attract those guests who travel to a meeting by air and wish to minimize ground travel. In the Indian context, most airport hotels offer services similar to that of commercial hotels and are directly in competition with them. Page 8 of 14 Bed and Breakfast Hotels B & B hotels range from houses with a few rooms to small commercial buildings with 20 to 30 guestrooms. Target Market: Budget conscious travelers looking for clean and comfortable accommodation Location: There is no specific characteristic as regards location Reservation lead time: Mostly walk in guests Basis of charging room tariff: mostly use the 12 noon check in check out system Duration of guest stay: Mostly overnight stay Facilities provided: The owner usually lives on the premises and is responsible for serving breakfast to the guests. Meeting rooms, laundry, recreational facilities etc are not offered. They offer lodging and limited food service and are hence able to price their rooms at highly competitive rates. Residential Hotels Residential hotels provide long-term or permanent accommodations for mainly single people in urban or suburban areas Target Market: Mainly single people looking for long term accommodation. Location: They are generally located in suburban areas. Reservation lead time: May be a month or even more since the stay is planned well in advance. Basis of charging room tariff: The charges for accommodation and other services contracted are usually settled on a monthly basis. Duration of guest stay: 6 months to a year or more. Facilities provided: The accommodation usually consists of a sitting room, bedroom and small kitchenette. Residents may choose to contract for some or all of the services provide to guests in a commercial hotel. A residential hotel may provide daily housekeeping, telephone, front desk, and uniformed services. A restaurant and lounge may All Suite Hotels Target Market: People who are relocating, frequent travelers who do not like the idea of staying in a single room, and vacationers who prefer the privacy and convenience of non-standard hotel accommodations for extended stays. Professionals such as accountants, lawyers, and executives find suite hotels particularly attractive since they can work or entertain in an area besides the bedroom. Page 9 of 14 Location: All suite hotels are located in the heart of the city or business district. Reservation lead time: similar to that of commercial hotels. Basis of charging room tariff: 12 noon check in and check out basis. Duration of guest stay: longer than that of commercial hotels but most often less than that of residential hotels. Facilities provided: They feature guestrooms with a living room or parlor area and a separate bedroom. Some guest suites include a compact kitchenette with a refrigerator and in-room beverage service. Some suite hotels offer complimentary evening receptions, breakfasts, or evening hors d’oeuvre service. Suite hotels generally have fewer and more limited public areas and guest services than other hotels. Conference Centers Conference centers are specifically designed to handle group meetings. Most fullservice conference centers offer overnight accommodations. Because meetings are their focal point, conference centers typically place great emphasis on providing all the services and equipment necessary to ensure a meeting’s success-for example, technical assistance, high-quality audiovisual/equipment, business service centers etc. Conference centers are often located outside metropolitan areas. They provide extensive leisure facilities: golf courses, indoor and outdoor swimming pools, fitness centers, spas, jogging and hiking trails, and more. Conference centers typically charge meeting planners a single price, which includes attendee guestrooms, meals, meeting rooms, audiovisual equipment, and other related services. Guest amenities may not be as plentiful at conference centers since these centers focus more on fulfilling the needs of meeting planners and organizers than on meeting the needs of program attendees. Convention Hotels Convention hotels have a sufficient number of guestrooms to house all the attendees of most conventions. Most of these properties house dining facilities ranging from self-serve restaurants or cafeterias to elaborate formal dining rooms. Convention hotels are primarily directed toward business travelers. A full line of business services are generally available, including teleconferencing, secretarial assistance, language translation, and facsimile machine. International examples of convention hotels are the Opryland Hotel in Nashville; and the Hyatt Regency in Chicago. Convention hotels usually attract the convention market for state, regional, national, and international associations. They also attract regional, national, or international corporate meetings. While most hotels book the majority of their group business Page 10 of 14 within two years of the meeting date, it is not uncommon for convention hotels to book their business up to 10 years in advance. In some cases, convention hotels do not have all the facilities needed, but are affiliated with a local convention center. Convention centers not only have space for meetings and conferences, they also have more than adequate space for exhibits and booths. Convention centers work with nearby hotels to assure guestrooms are available for convention attendees. Hotels, in turn, sell the convention center to appropriate markets to garner rooms business. Time share Hotels Time share properties involve individuals who purchase the ownership of accommodations for a specific period of time- usually one or two weeks a year. These owners then occupy the unit- usually a condominium (A unit consisting of a living room, dining area, kitchen, bathroom and one or more bedrooms) - during that time. Owners may also have the unit rented out by the management company which operates the hotel. These hotels are very popular in resort areas. Time share owners receive revenue from the rental of their units and pay the management company a fee for advertising, rental, housekeeping and maintenance services. Condominium Hotels The difference between the time - share and condominium hotels lies in the type of ownership. Units in condominium hotels (A condominium is a unit consisting of a living room, dining area, kitchen, bathroom and one or more bedrooms) only have one owner instead of multiple owners. In a condominium hotel, an owner informs the management company of when he or she wants to occupy the unit. The management company is free to rent out the unit of the remainder of the year. Condominium owners receive revenue from the rental of their units and pay the management company a fee for advertising, rental, housekeeping and maintenance services. 3. Explain in details about the Categories of guest-rooms and explain about the meal plan: Type Size (sq m) View Décor Standard single 23.5 Town view Pine furniture Superior single 23.5 Sea view Pine furniture Deluxe single 25.5 Sea view Rosewood furniture Deluxe double 28.6 Sea view Rosewood furniture Suite 105.9 Sea view Antique furniture Page 11 of 14 Some hotels have guest-rooms which are connected to each other. This means that two or more rooms are joined together by private inter-leading door, which permits access between the rooms without passing through a public corridor. These rooms are particularly popular with families. The studio room is another type of guest-room; this type of room has beds which fold away into the wall so that the room can be used for meetings during the day. Meal plans Rate (UK) Rate (US) Rate (French) Room only European plan The rate quoted is for the room only. This can be on a per person or per room basis Room and breakfast Continental plan This rate includes breakfast as well as the accommodation Half-board Modified American plan Demi-pension The rate includes room, breakfast and one meal, usually dinner Full board American plan En pension All meals are included with the accommodation, i.e. breakfast, lunch and dinner. Sometimes afternoon tea is also included Page 12 of 14 Explanation 4. Explain in details about the Types of Hotel Guest: Different guests have different preferences in their selection of accommodation. In the following sections, we shall investigate how hotel guests are categorized. It is always beneficial to understand the needs and wants of the guests who use your accommodation. The more information a hotel can gain about its guest, the better it can anticipate what they want, and so be able to offer quality service. This information is also of special value when: analyzing and trying to satisfy guest requirements; determining the facilities and service expected; and evaluating the hotel’s pricing policy. In general hotel guest can be classified according to: their purpose of visit (pleasure travelers); numbers (independent or group travelers); and their origin (local or travelers from overseas). Pleasure travellers (otherwise known as tourists) are people who travel for pleasure (e.g sightseeing or entertainment). Their arrivals are highly seasonal and are attracted by special festivals, sports or other cultural events. Pleasure travelers are generally price sensitive. Their personal income is an important factor in determining their particular needs. DFIT – Domestic Free Individual (or Independent) Traveller (local people who stay at a hotel for weekends, special functions and activities) FFIT - Foreign Free Individual (or Independent) Traveler; international tourists, who make their own travel arrangements and purchase their accommodation independently. This type of group is not usually looking for an accommodation package (i.e full board or half borard); they normally require accommodation only. GIT – Group inclusive tours; groups of tourists who travel together on package tours. Their expenditure is very often lower because they tend to budget their spending allowance. Accommodation and sometimes meals are usually booked well in advance, by the tour agency. Special interest tours (SITs); groups of people who visit a place once, usually with a special interest in mind. Incentive tours – Tours planned with the consideration of vacation, official allowances and special discounts of hotels Back to back Series tours – tours arranged by travel agent with continuous plans for the entire tour. Business travelers are people who travel for the sole purpose of conducting business. Business travelers are the largest source of demand for accommodation. This demand exists all the year round, whit the exception of public holidays, but can also decrease during summer holiday months. Business travelers often require accommodation at short notice and, for this reason, they prefer to establish close ties with a particular Page 13 of 14 hotel so that they can use the accommodation services on a regular basis and not be inconvenienced by lengthy reservation procedures. Types of business travelers Individual business travelers who travel alone, Corporate business travelers who companies make frequent bookings (and who usually receive reduced room rates) Conference/Convention participants (whose accommodation usually reserved by a company or the conference/convention organizer before their arrival) Trade delegates (who may receive reduced room rages because of block booking) Page 14 of 14