Hotels and Hotel Industry

What is Hotel ?

DEFINITION OF HOTELS : Hotel is defined by British law as a Place where a bonafide guest receives food and shelter, provided he is in a position to pay for it and is in a receivable condition. (Rights of admission reserved).

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The hospitality is a part of larger enterprise known as travel and tourism industry. The travel and tourism is a vast group of business with one goal in common providing necessary and desired products and services to customers and travelers.

Accommodation facilities constitute a vital and fundamental part of tourism supply. Among the important inputs, which flow into the tourism, system is tourism accommodation forming a vital component of tourism superstructure.

Classification of Hotels

The classification of hotel s can be upon the basis of the following factors:

Basis of Location

  1. City Hotels – these hotel s are generally located in the heart of the city within a short distance from the business centers or shopping arcades. Rates are normally high due to their location advantage. These are the largest type of hotel s and cater primarily to the business travellers. Guest amenities may include complimentary newspapers, morning tea/coffee, free local telephone calls, personal computer and fax machines. City hotel s are also known as Commercial Hotel s or Downtown Hotel s..Eg.The Oberoi Grand,Kolkata
  2. .Motels – they are located on highways and provide facilities such as individual car parking, car wash, refueling etc. These hotels are comparatively of less budget.
  3. Airport Hotels – these hotel s are located near the airports and the maximum guests are business travellers, airline passengers with over night travel or connecting flights and airline employees. Car pickups and drops are provided to all the guests.Have sound wake-up calls,linked to airport screened air traffic schedules for the passengers. Duration of stay is mostly for only a few hours.
  4. Resorts – these hotel s are located at holidaying places mostly on islands, sea beaches, hill stations etc. Mainly for relaxation of guests.Geared towards families and couples. Duration of stay is longer.
  5. Floating Hotels – the hotel s established on ships or luxury liners are known as floating Hotels.. They are located near water bodies or their surfaces.
  6. Boatels – the house boats which provide accommodation and food are known as boatels. Eg. Shikaras
  7. Rotels – these are double decker buses for long cross country tours.Passengers sit on ergo-planned seats on the lower floor and sleep on second floor,fitted with tiered berths.

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Basis of Size

  1. Small Hotels – with 25 rooms or less.
  2. Medium Hotels – with 25 to 100 rooms
  3. Large Hotels – with 100 to 300 rooms
  4. Mega Hotels – with more than 1000 rooms.

Basis of Levels of Service

  1. Budget or Economy Hotels – provides the basic requirements of a guest and comfortable and clean rooms for stay.
  2. Mid-market hotels – provides comfortable guest rooms with all necessary facilities and services.
  3. Luxury hotels – offers world class service with restaurants, lounges, concierge services, meeting rooms, dining facilities etc. The guest rooms are well furnished and decorated. The prime target market for such hotel s are celebrities, business incentives, and high ranking political figures.

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Basis of the length of stay

  1. Transit hotels – the hotel s where the guest stays for a maximum of 1 day or less. The occupancy rates are very high. These hotel s are normally situated near the airports.
  2. Residential hotels – the hotel s where the guests can stay for a minimum period of 1 month even up to a year. The rent can be paid on monthly or quarterly basis. They provide sitting rooms, bedrooms, and kitchen.
  1. Semi-residential hotels – these hotel s have features of both transit and residential hotels.

Basis of theme

  1. Heritage hotels – the hotels are monuments or forts or old buildings converted into hotels. These hotel s have their own history and give a glimpse of their region. Traditional cuisine is served and culture is showcased. Hotels which are more than 100 years or more old can also be termed as heritage hotels.
  2. Boutique hotels – these hotel s have a specific décor and theme for their guest rooms and areas
  • Ecotels – these hote ls use only environment friendly materials in the hotels.
  1. Spa Hotels– these resorts provide therapeutic baths, health treatments and massages along with other features of luxury hotels.
  2. Casino Hotels –Hotels with 24 hours gambling facilities.

Basis of Target Market

Target Markets are the groups of people that an organization hopes to attract as guests. The most common type of properties based on target market include commercial, airport, suite, residential, resort, timeshare, condominium and convention hotels. There are also several alternative types of lodging properties that directly compete with hotels.

  1. Commercial Hotels – Refer Categorization on the basis of location.
  2. Airport Hotels – Refer Categorization on the basis of location.
  3. Residential Hotels – guest stays for longer period of time in this hotel. Rooms are attached with kitchen for cooking. Maintenance of these hotel are carried by outsourced HK cost of living in this type of apartment is very less because duration of the guest is for longer period of time almost for one year. Eg these kinds of hotels are found near University campuses, near colleges.
  4. Resort Hotels – Refer Categorization on the basis of location.
  5. Suite Hotels – These are similar to residential apartments but duration of the stay is shorter. It is ideal for families who need a temporary accommodation before moving to the apartments. Suites hotels also have more facilities and services than residential hotels.
  6. Timeshare Properties – Time share properties are a new concept of ownership of holiday rooms. They are located at islands, hill stations, beaches etc. People own the property for a specified period usually a week to a fortnight. Owners book their time slot any time in the year.
  7. Condominiums – Here the owner owns a unit which is an apartment in a complex of several such accommodations. The occupant furnishes the flat according to his/her taste and informs the owner the time he or she will occupy the apartment. Condos have restricted entry to occupants only. Occupants pays annual maintenance fee.
  8. Convention Hotels – are especially generated to hold conventions. A convention is an international or national event that brings large number of people of a similar vocation together to learn latest development in that field. This kind of hotel have more than 2000 guestrooms with large meeting rooms, ball rooms, large registration areas, and spacious dining halls for the guests.

Basis of ownership and affiliations

  1. Independent Hotels: Independent hotels have no ownership or management affiliation with other properties. They have no relationship to other hotels regarding policies, procedures or financial obligations. A typical example of an independent property is a family-owned and operated hotel that is not required to confirm to any corporate policy.
  2. The unique advantage of an independent hotel is its autonomy. Since there is no need to maintain a particular image, the independent operator can offer a level of service geared towards attracting specific target market. An independent hotel, however, may no enjoy the broad exposure or management insight of an affiliated property and does not enjoy purchasing power of a chain.
  1. Chain Hotels :Chains usually impose certain minimum standards, rules, policies and procedures on their affiliations. In general, the more centralized the organization, the stronger the control on the individual property. Chains with less dominant central organization allow managers to exercise more creativity and solve more problems on their own.
  1. A chain is usually classified as operating under a management contract, as a franchise or referral group.
  2. Management Contract. Management companies are organization that operates properties owned by other entities. These entities range from individual business people and partnerships to large insurance companies. Here’s an example of how a management company might be hired to run. A group of business people may decide that a hotel would enhance a local business conditions. If the groups primary business feasibility study was favorable, the group might attempt to obtain financing to build the hotel. Many lending institutions, however, would require professional hotel management – possibly chain affiliation – before they would approve a loan. At this point the group can contract with a professional management company to operate the proposed property, probably on along term basis. Assuming the hotel management company was acceptable to the lenders, a management contract would be drawn up between the developers and the management company.
  1. Under this type of contract, the owner or developer usually retains the financial and legal responsibility for he property. The management company usually operates the hotel, pays its expenses and in turn receives an agreed upon fee from the owner or developer. After operating expenses and management fees have been paid, any remain cash usually goes to the owners, who may use this cash to pay debts, insurance, taxes etc.
  1. Some of today’s best known hotels belong to franchise. They can be found in most cities and towns, along interstates, and in resort areas. Franchisingis simply a method of distribution whereby on entity that has developed a particular pattern or format for doing business. Franchise organizations typically have set standards for designing, décor, equipment and operating procedures to which all its properties must adhere. This standardization is what enables franchise chains to expand while maintaining a consistent, established product and level of service.
  1. The franchisor usually provides the franchise with other reasons for purchasing a franchise aside from a strong brand name. These include national and international central reservation services, national advertising campaigns, management training programs and central purchasing services. Some franchises provide architectural, construction and interior design services. Some of the better-known franchising companies are Holiday Inn; Choice International (Quality Hotel s and Inns); Ramada Inc.; and Days Inns.
  1. Franchises are not necessarily right for all properties. Some properties are so distant that belonging to a franchise system and conforming to a set of a standard is perceived as harmful. For these operational a referral group might be appropriate.
  1. Referral groups – these consist of independent hotels which have branded together for some common purpose. While each property in a referral system is not an exact replica of the other, there is sufficient consistency in the quality of service to satisfy guest expectations. Hotel s within the groups refer their guest to other affiliations properties. Through this approach, an independent hotel may gain a much broader level of exposure. Best Western International-one of the largest hotel system in the world is an example of a referral group.

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  • Abhijit

    pls carry on the very good work here….thanksss..