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HTD 500 Study Guide - Fall 2019, Comprehensive Midterm Notes - Internet, City, United States


Department
Hospitality and Tourism Management
Course Code
HTD 500
Professor
Richard Wade
Study Guide
Midterm

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HTD 500

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Chapter 1 Growth & Development of the Hotel Industry
Origins of the International Lodging Industry
hotel industry plays a vital role in development of trade, commerce & travel throughout
the world
History of Hotel Development
The origins of the European Lodging Industry
Early time
Written record of the existence of the lodging industry: Hammurabi’s laws
Purpose of travel: utilitarian reasons
Travelers: mercenaries, pilgrims, clergymen & farmers
The Grand Tour: 18th century
The professional hoteliers, such as Cesar Ritz
Early History of the Hotel Industry in North America
The Colonial Period
1794: City Hotel New York
1829: Boston Tremont House
1900: Buffalo Statler Hotel
1930: The Depression
1940: World War II
1950: Motel Room
Emergence of Hotel Chain
1960: Hotel Market Segmentation
Tremont House Innovation
1st to provide private single & double rooms
a lock on each door; a bowl & pitcher for every room
free soap in every room
a trained staff
French cuisine, bell boys, an annunciator (forerunner of room telephone)
canopy design
Features of Buffalo Star: 1st Commercial Hotel
fire doors at 2 main stairways
keyholes for door locks placed above doorknob
a light switch just inside each door
a private bath, full length mirror
a free morning newspaper for each guest
The Development of Motel
offer inexpensive, ‘no-frill’ accommodation to meet the needs of highway travelers
20-50 guest units; inexpensive furnishings, particle board walls & ceilings, tile floors,
small baths, metal shower stalls & radio
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become competitive due to convenient highway location, ample free parking & low
rates
market: vacation travelers (young families, senior citizens), salesmen, government
employees, middle managers
due to variety of factors, motels
- increase in size w/ additions to existing properties & more total units constructed for
new properties
- joined referral groups & franchises to obtain national images & greater exposure
- offer more amenities: tv, air-conditional, telephones, swimming pools, restaurants,
lounges, meeting & banquets rooms, gift shops
- provide more services: 24 hr telephone switchboard & front-desk attendants, national
telephone reservation systems, credit cards acceptance, direct-dial guest room phones,
morning wake up calls
Motor hotels: combine services & facilities of hotels w/ convenience of motels
one of the earliest motel chains: Holiday Inns
Factors contributing growth in supply of motels rooms during 1950s
- passage of US Interstate Highway Act in 1956
- change in income tax laws in 1954
- franchising
The Arrival of the Budget Motels
offer lower price than 1st rates motel hotel chains; took advantage of low investment
costs, operating efficiencies & high volume
Lower Initial Investment Costs
facilities have smaller guest rooms, minimal public space, lower land costs & simple, no-
frills design, does not reduced quality of construction
eliminate low revenue public areas: meeting & banquet rooms, large lobbies, extensive
F&B facilities, executive offices
efficient use of materials & space
- guest rooms: double loaded (back to back)
- min landscaping & decoration
Operating Efficiencies
compact facilities & fewer guest services contribute to operating efficiencies & lower
expenses
less cleaning & maintenance, more efficiently heated & lighted
reduced payroll & operating expenses: elimination of bellmen, F&B facilities, room
service, entertainment, acceptance of credit cards
main reason travelers select budget motels
- price: elastic demand curve (reduce price increase volume)
- location: higher occupancy rates due to locate next to higher-priced hostelries
- good value: provide clean, good quality guest rooms
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The 2000s: Terrorist Attacks, Further Market Segmentation & The Internet
terrorist attack: Sept. 11, 2001 has effect on hotel market values
- cut flight schedules, decreased travel & occupancy levels
- hotel owners & managers move to price-driven marketing strategy: offer discounts to
attract patrons
Market segmentation: al-suite hotel, extended-stay hotel, hard budget hotel, boutique
hotel & condo hotel
Learning from History
Factors that will affect lodging establishments in the future
Faster Transportation
- jet airplane: long-distance travel by all ppl to cover more miles in shorter trips
- increase speed of transportation, more advanced aircraft possible to fly round trip
Better Communication
- video communication system: reduce face-to-face meetings w/o incur travel & hotel
expenses
- Internet: provide much info; OTAs (Expedia, Travelocity, Orbitz) allow customers study
room rates & draw comparisons from online hotel rating (trip Advisor)
- able to find best available price on discounted travel sites: Priceline, Hotwire
- OTAs has replaced travel agents to lower hotel travel agent commissions
Globalization
- globalization of business will create need for business travel when face-to-face
interaction is essential
Increased Pleasure Travel
- as no of affluent, two-income families increase, quicker & easier transportation &
inexpensive, pleasure travel has increase (resort- greatest benefit)
Hotel Concept: Historical Perspective
historically hospitality industry is driven by evolution in modes of travel
what is the evolution of modes of travel? What accommodations were conceptualized
w/ emergence of travel mode?
hospitality industry requires adaption & greater flexibility to its existing & new products
service methods can be changed more easily than physical properties
The Hotel Planning & Development Process
1. Concept
concept: an idea w/ definition & identity that defines an image
- in terms of hospitality industry, concept consists of a service delivered in purposely-
designed property
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