Chapter 5:

ACCOMMODATIONS
Presented by: Group 4
I. History of the
Accommodations and Lodging
Industry
 Developed
because of the need to provide
accommodations to travelers
 IndustrialRevolution 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
I. History of the
Accommodations and Lodging
Industry
The introduction and development of the
automobile industry led to the building of
roadside hotels or motels
In 1960s, resort hotels were developed due to
the popularity of the sun vacation
A recent development is the establishment
of hotel chains and overseas expansion of
these chains
II. Types of Accommodations

Hotels Bed and Breakfast

Motels or Motor Hotels Tourist Inns
Resort Hotels Apartment-Hotels
Pensions (Apartels)
Paradors Health Spas
Condominium Hotels Private Homes
 Campgrounds
Time – Sharing
 Hostels
II. Types of Accommodations

1.Hotels 2.Motels or Motor

✔️Designed and built to Hotels
meet almost any kind of
budget or comfort level
✔️Offers rooms only
that the traveling public and free parking to
might want guests
✔️10 room boarding house ✔️Often found along
or building that has
thousand or more rooms
busy highways and
cater primarily to
✔️24 hours room service
transient and cost-
conscious travelers
HOTE
L

MOTEL OR MOTOR
HOTEL
II. Types of Accommodations

3.Resort Hotels 4.Pensions

✔️Intended for ✔️ Usually family-owned
accommodation facilities
vacation travelers
✔️Also called Gasthaus in
✔️Range from budget German speaking parts of
to luxury and can Europe
accommodate these ✔️Usually offer
travelers and even continental breakfast but
convention delegates do not have facilities for
other meals
✔️Known for informal
family atmosphere
Resort Hotel

Pensions
II. Types of Accommodations

5. Paradors 6. Condominium Hotels

✔️Generally old ✔️hotels with apartments
(condominiums) instead
castles, convents or
of basic rooms
monasteries that
✔️Sold by the hotel
have converted into
developers to individuals
hotels by government who are given a title to
and are operated by the physical real estate
the government ✔️Generally appeals to
families because of the
apartment
Paradors

Condominium Hotels
II. Types of Accommodations

7. Campgrounds
8. Bed and
✔️Popular form of Breakfast
overnight
accommodation in both ✔️originated in
Europe and North Europe
America
✔️Provides a bed for
✔️Usually appeals to the night and
families who travel in
breakfast the next
recreational vehicles
(RVs) day
✔️Often found in
government parks and
forest
Campgrounds

Bed and Breakfast

II. Types of Accommodations
9. Tourist Inns 10. Apartment –Hotels
( Apartels)
✔️Lodging
establishments ✔️Buildings which
contain several
that cater to independent and
transients furnished or semi-
✔️Do not normally furnished apartments
meet minimum ✔️Leased to tourists
requirements of an and travelers on a
economy hotel long-term basis and
offer basic services to
its tenant, similar to
Apartment –Hotels
(Apartels)

Tourist Inns
II. Types of Accommodations

11. Health Spas 12. Private Homes

✔️Hotels and resorts ✔️Earliest form of
which cater to people overnight lodging for
who go to spas or travelers
mineral springs for ✔️Provides lodging to
medical treatment or tourist who cannot be
weight reduction accommodated in
hotels and motels
during peak vacation
periods
 Private
Homes

Health Spas
II. Types of Accommodations

13. Time-Sharing 14. Hostels

✔️More recent unique ✔️Provide basic
type of accommodation amenities such as
✔️Selling of vacation bunk bed and a
lodging, usually commonly shared
condominiums for toilet and bathroom
specific week or weeks
over a given number of ✔️Appeal primary to
years young travelers
Time-Sharing Hostels
III. Classification of Hotels

1.Location 2. Guest 3. Price

Type
• Center-City • Economy
• Suburban • Commerci • Standard
• Airport • First Class
al • Deluxe
• Highways
• Conventio
ns
• Resort
IV. Rating Systems
The following are used to rate hotels, motels, Inns,
resorts, and guest ranches:

Key Features

One Star Good, better than average;

Two Star Very good;

Three Star Excellent;

Four Star Outstanding; and

Five Star One of the best in the

country
V. Organization of the Lodging
Industry
Engineering
and
Personnel Maintenance Accounting
Division Division
Division

Food and
Beverage
Division Marketing
Security
Division and Sales
Division
Room
Division
V. Organization of the Lodging
Industry
A hotel organization can be large and complex. A
typical hotel has seven major divisions, namely:

1.Personnel Division
•Recruits new employees and administers
policies and employee benefits for the
company
2.Engineering and Maintenance Division
•Makes necessary repairs and implements
the hotel’s energy management program
V. Organization of the Lodging
Industry
3. Accounting Division
•Handles financial activities of the operation
which include payment of bills, sending out
statements, payroll, and compiling monthly
income statements
4. Security Division
• Provides protection for both employees and
guests
5. Food and Beverage Division
• Responsible for the food and beverage that
are served
V. Organization of the Lodging
Industry
6. Marketing and Sales Division
• Responsible for selling the rooms and food
service
• involved in advertising, development of
promotional materials, and making direct
contacts with prospective clients
7. Room Division
• Responsible for the front desk, telephone,
reservations, and housekeeping department
VI. Management Methods

Traditionally, hotels are operated by

the people who own the property. In
some cases, the operator may lease
the hotel from the owner and then
manage it. In other cases, special
arrangements are made such as
franchising and management
contracts.
VI. Management Methods
A. Franchising
• hotels that are franchised are usually owned
and operated by the same person or company
• hotel operator or franchisee signs a contract
with the franchisor to maintain certain
operating standard and to use the franchise
name in the hotel or motel
B. Management Contract
• hotel management company does not have a
financial interest in the hotel’s land and building
• landlord owns the property but does not have any
interest in managing
VI. Management Methods
C. Chain Accommodation Operations
• Most hotels and motels are part of a chain operation
• the individual units in the chain may all be own by
one large company, be partly owned and partly
franchised, or may all be franchised
D. Referral Groups
• become popular because the individual owner or
operator can remain independent while achieving
many of the benefits of a chain group
VII. Hotel Terminology
Room rates for hotels are quoted in terms of
what meals are included in the price.
1. European Plan (EP)
- Means that there are no meals included
- Most commonly used room rate quoted by
North American hotels
2. American Plan(AP)
- Means that breakfast, lunch, and dinner are
included in the quoted price
- Known as FULL PENSION in Europe
VII. Hotel Terminology
3. Modified American Plan (MAP)
- Includes breakfast and dinner but not lunch or breakfast and
lunch but not dinner
- Known as DEMI PENSION in Europe

4. Continental Breakfast
- Offered by most European hotels included in room rate
- In Europe, this type of plan is known as the HOTEL GARNI or
PENSION GARNI which consists of rolls, coffee, and sometimes
juice
5. Bermuda Plan (BP)
- Includes both a room and a full English or American type of
breakfast
Room Rates

Rack Rates
 maximum rates that hotels charge for
a room normally depend on the
number of people occupying it
 posted on the inside of the entrance
door of each guest room
 not
always the rate that is paid for a
room
Room Rates

• Hotels, like airlines, have a system of

discounted prices
• Hotels offers discounted rates to special
classes of people to encourage them to stay
in the hotel
Example: there are special rates for business
travelers, government employees, airline
employees, and other similar groups
VIII. Hotel Profitability

A. Room Occupancy
✔️Simple measure of a hotel’s profitability is
it’s room occupancy
✔️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
VIII. Hotel Profitability

Example:
125-room hotel has 75 rooms occupied on a
particular night, it’s occupancy will be:

75/100 ×100 = 60%

* Occupancy can also be determined for a week,

a month, a year, or any other period of time
VIII. Hotel Profitability
Example:
If we want to know the occupancy for a week,
the occupancy percentage would be:
463/(125×7) × 100 = (463/875) × 100 =
52.9
463 = number of rooms occupied for that
period
(125×7) = number of rooms in the hotel
times the number of days in the period
* In general, hotels are considered
profitable if they can operate with an
VIII. Hotel Profitability

B. Double Occupancy Rooms

✔️Determine the occupancy and the double
occupancy rate which is the number of
rooms occupied by more than one person
✔️It is determined by dividing the number of
guests accommodated during a certain
period by the total number of guests rooms
during that same period
VIII. Hotel Profitability

Example:
If 463 rooms were occupied by 713 guests
during a week, the double occupancy is:
713/463 = 1.54
* The 1.54 double occupancy ratio
means that 54% of the rooms were
double occupied.
VIII. Hotel Profitability

C. Average Rate Per Room Occupied

✔️Another way of measuring maximization of
revenue I
✔️Average rate will increase if more expensive
room are sold or if more rooms are double or
triple occupied
✔️Obtained by dividing the revenue for a period
by the number of rooms occupied during that
period
VIII. Hotel Profitability

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:

$37,640/463 = $81.30
VIII. Hotel Profitability
E. 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
VIII. Hotel Profitability
F. Breakdown Point
✔️It is that point at which a business will make
neither a profit nor a loss. The equation for
determining it is:
Fixed Costs / Contribution Margin
* Fixed Costs – are those that stay the same
regardless of the volume of business
Examples: Management Salaries, Interests,
Depreciation, Insurance, etc.
VIII. Hotel Profitability

* Contribution Margin – the average room less

the variable costs of having a room occupied

* Variable Costs – those that change according

to the number of guests in a hotels and a
variable costs for a hotel room are primarily
the costs of housekeeping such as maid
wages, linen, laundry, and supplies
VIII. Hotel Profitability
Example:
If the fixed cost of a 125-room hotel is
$1,950 for a year, it’s average room rate
is $80, and the variable cost per room
occupied is $20, it’s breakeven point
would be:

$1,950,000 / $80.00 - $20.00 × 100

= 32,500 / 45,625 ×100
= 71.2%
VIII. Hotel Profitability

* This means that the hotel must

average 71.2% occupancy during the
course of the year
* A breakeven analysis is an important
managerial tool because it shows the
percentage of occupancy that a hotel
must have to cover expenses
IX. Accommodation Reservation
Hotels use different methods to avoid overbooking
and reduce the no – show factor.

First Method: Second Method:

 Hotel advise the  Hotel ask for a
customer that it will deposit when a
honor a reservation
only if the customer
room is booked.
arrives at a certain
stipulated time.
IX. Accommodation Reservation

* Overbooking – selling more rooms

than the actual available rooms

* No – Shows – people who do not

advise that they want their
reservations cancelled
  Used as a marketing
IX. tool
Accommodation  Provides information
Reservation about the guests such
A. Registration as his or her name,
Cards address, geographical
origin, and other facts
 Also used to produce
typical customer
profile
 At present , there is a natural link
between airline companies and
hotels.
IX. According to Lane (1994), there
are three major reasons why
Accommodation airline companies link with hotels.
Reservation These are:
The desire to protect insisting
B. Hotels and 1.
business and develop future
Airlines business, thus increasing their
profit;
2. The expectation that hotel
ownership will boost tourism
development on their home
countries; and
3. The desire to expand national
culture
  Many of the
frequent Flyers
IX. programs of
Accommodation
airlines are also
Reservation
linked to hotel
C. Frequent
usage. This means
Flyers Links that airlines grant
airline passengers
extra mileage
points for staying in
participating hotels
X. Accommodation
* Accommodation establishments promote
Promotions
their properties to tour wholesalers and travel
agencies as well as to members of the travel
trade.
They also use the following as promotions:
• Direct Mail Approach – hotels use this
approach to groups who would like to hold
meetings, conventions, or conferences in the
hotel.
• Newspapers
• Magazines
• Radios
• Television Advertisements
 GROUP 4
Mylene Gilbuena
Elaica Shyn Hipolan
Leah Rose Hortelano
King Rhajen Ilusorio
Mark John Pril Lawa-an
Christine Luar