ADHM 360 Study Guide - Spring 2018, Comprehensive Midterm Notes - Amplitude Modulation, Revpar, Outsourcing
12 Oct 2018
School
Department
Course
Professor
ADHM 360
MIDTERM EXAM
STUDY GUIDE
Fall 2018
U.S Lodging Industry Key takeaways
53,400+ properties with over 5 million rooms
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$176 Billion in revenue
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64.4% Average Occupancy Rate (AOR)
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$74.12 Revenue Per Available Room
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1.9 Million People Employed
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Key Lodging Demand Factors
Overall Economy
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Oil Prices
1% Increase in the price of crude oil results in .06-.09% decline in
lodging demand
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Airline Ticket Prices
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Population Demographics
People above 45 years of age tend to be the most intensive
consumers of lodging.
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Typical Lodging Customers
Business Travelers 40%
Characteristics:
Primary Market for hotels
1.
More than 35 million people take business trips/year
2.
Male dominant, but increasing number of females
3.
Travel alone 68%
4.
Location is a key lodging selection factor
5.
Pays $129/ night
6.
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Leisure Travelers 60%
Characteristics:
More price conscious than business travelers
1.
Travel by auto (81%)
2.
Two adults (50%)
3.
Less loyal than business travelers
4.
Pay $109/ night
5.
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History of American Hotels
1794- First Hotel "City Hotel" New York City
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Ch. 1
Thursday, January 11, 2018
11:03 AM
1794- First Hotel "City Hotel" New York City
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1829- Tremont House "First Luxury Hotel" Boston, MA
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1907- First Chain Hotel "Hotel Statler" in Buffalo, NY
Moderately priced rooms for the average traveler "A room and a
bath for a dollar and a half"
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Late sold to Conrad Hilton's Hilton Hotel in 1954.
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1919- First Hilton hotel "The Mobley" in Cisco, TX by Conrad Hilton
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1922-First Collegiate program in HRM at Cornell University
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1933-Great Depression: Lowest Average Occupancy rate 51%
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1939 First referral chain-"quality courts (Later Choice Hotel"
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1945-Listed on the NYSE "Sheraton Hotel"
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1946-First Casino Hotel- The Flamingo
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1952-Kemmons Wilson opened the first "Holiday Inn" in Memphis Tenn.
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1957-Franchised the chain as "Holiday Inn of America"
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1988-Was purchased by Bass PLC.
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1954-Howard Johnson initiates first lodging franchise in Savannah, GA
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1957-J.W. Marriott opened his first hotel "Twin Bridges Marriott Motor
Hotel in Arlington, VA
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1962-First "Model 6" Opened in Santa Barbara, CA
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1984-First all-suite hotel chain- "Embassy Suites Hotel" overland Park, KS
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1988-First extended stay segment introduced "Residence Inns" &
"Homewood Suites"
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1989- First hotel chain to introduce the 100% satisfaction guarantee-
"Hampton Inn"
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1999-First Boutique segment introduced with the opening of "W"
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Top 5 Hotel Companies in world
Marriott International &Starwood Hotels & Resorts
1.
Hilton
2.
InterContinental Hotel Group
3.
Wyndham
4.
Choice Hotels
5.
Others: Accor Best Western, Home Inns, Carlson, Hyatt
6.
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Marriott International
Acquired Starwood Hotels & Resorts and became the worlds largest hotel
company in 2016
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4,000 properties in 80 countries
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30 Hotel Brands: Ritz-Carlton, JW Marriott, renaissance, Marriot, Marriott
Executive Apartments, Marriot Vacation Club…
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Hilton Hotels
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