.
 The market consists of all the people who could
potentially buy what you are selling or everyone who
travels
 http://www.youtube.com/watch?feature=player_detail
page&v=m5R6wRUBpRM
The Lodging market consists of subgroups:
Business
Leisure
Conventions and Meetings
Budget
Long-Stay
Special
 Each lodging business is unique, yet each one has to
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perform the same functions
In small business, one person may perform several of
these functions
In a large business, there is usually a separate
department for each function
The percentage of each market segment staying at a
lodging property is the guest mix.
A referral group is a group formed of independent
hotels that create a central office for reservations.
10 Functions of the Lodging Business
Front office-Handles all activities with guest rooms, making
reservations, checking guest in and out, and helping
guests while on property
Housekeeping-Prepare rooms for guest and do laundry;
makes sure building, furniture, floors, and all public
areas are clean.
Purchasing and Receiving- Buy the right quality and quantity
of supplies at the best price. Make sure supplies
arrive when needed. Inventory.
Management-oversees all functions of the business. Make
sure business operating profitably and meets the
customer’s needs.
Marketing and Sales-Learns what customers want. Develop
marketing plans. Advertise.
Human Resources- Manages all employee issues, including pay,
benefits, hiring , firing, and training.
Accounting-Keeps track of all the money that flows in and
out of the business.
Security-Prevent harm to business property, employees,
guests, and guest’s property.
Safety and Emergency Procedures-Makes sure the workplace
is safe and meets all government safety requirements.
Engineering-Makes sure all equipment, plumbing, electricity,
and building facilities are working properly.
Concierge-helps guest make arrangements and advises guests
on what to do and see in the area.
 Copy the flow chart
 Providing food and beverage is an essential part of the
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lodging’s services
Almost every property has a vending machines
Full-service hotels have at least one restaurant, snack
shop, room service, etc.
Limited service properties offer a continental breakfast
(which is a morning meal that does not have to be
cooked)
Bed-and-breakfasts are famous for home-cooked
breakfasts
Resorts have room rates that include meal or meal plan
1)
2)
3)
4)
5)
Describe the differences among the four categories of
businesses in the lodging industry.
What does a hotel management company do?
What are the five price categories of lodging
properties
What are the six major segments of the lodging
market?
List the functions in lodging business.