Chapter 6: Accommodations

Overview

We all need to find shelter while traveling. This is equally true of seasoned luxury travelers, campground veterans, and burgeoning explorers. Accommodations are thus an essential part of a traveler’s journey. From luxurious hotels and resorts to smaller motels and even RVs and camping sites, there are many options to choose from. Each accommodation type appeals to a different type of traveler.

This chapter examines various types of accommodations. Each type of accommodation includes unique features, benefits, and drawbacks. Furthermore, the chapter discusses the role of accommodations in the greater hospitality and tourism field. This includes how accommodations contribute to the overall experience of a traveler.

The chapter accepts a focus on career pathways and success in movement through each step of one’s professional career. The chapter investigates management techniques and topics including career paths, departmental responsibilities and communication, hotel brands/flags, processes at the operations level, and stakeholders peripheral to operations such as hotel owners and hospitality consultants. Even staffing , PCI compliance , POS/PMS , front office staff training, real estate cap rates , and budgeting are covered for those learners who may be interested in hotel ownership one day.

By the end of this chapter, you will have a better understanding of the different types of accommodations available and how to choose the best option for your specific needs and preferences, whether you are a traveler or industry professional building a career.

 

 

7.1 Introduction

Accommodations refer to lodging facilities that provide overnight guest rooms and services for travelers. This hospitality sector represents a core component of tourism infrastructure worldwide. Accommodations enable visitors to enjoy destinations by having comfortable, convenient places to sleep and store belongings while away from home.

Hotels , motels, resorts , hostels , bed and breakfasts , campgrounds , and vacation rentals are common forms of accommodation and exist as good examples. Accommodations range from modest to luxurious in terms of amenities, services, and pricing. What they share is the basic provision of guest rooms along with features like front desk service, housekeeping , parking, and often dining or other facilities.

Hotels are one type of accommodation. These properties typically offer a full range of guest services and amenities . Motels are another type of accommodation. These properties grew up along highways but are not necessarily located along highways and interstates any longer. Motels are mostly differentiated from hotels in that rooms are accessed from exterior walkways, with doors often but not always facing parking lots. Resorts are yet another type of popular form of accommodation that hospitality and tourism students choose to build their careers at. These properties normally provide recreation as an amenity including golf, spas, entertainment, and expansive grounds. Hostels offer budget dorm-style lodging for backpackers. Bed and breakfasts are small, intimate homestays, usually with included breakfast. Campgrounds provide outdoor overnight accommodations through tent sites, RV hookups and rustic cabins. Vacation rentals include privately owned homes, apartments, and condominiums rented short-term. There are many other types of accommodations beyond those listed above. This chapter will explain most forms of accommodation.

Key customer markets include travelers such as those on business, leisure tourists, groups, or extended stay guests. These traveler types are groups by things such as segmentation . Segmentation could be by price point, location, amenities, and/or purpose. These are often called market segments . [: budget hotels]

Another way professionals in this industry delineate is by hotel type. For example, budget [/: budget hotels) and midscale hotels cater to value-driven travelers, while [: upscale hotels] upscale [/: upscale hotels] and luxury hotels target premium guests. Boutique hotels provide intimate, stylish ambience.

Yet another way to delineate property type is by emphasizing the purpose for the hotel and style of operations. Examples include airport hotels which emphasize convenience for transient air travelers, Convention hotels to host meetings and events, or destination resorts which create an all-encompassing leisure experience.

Behind the scenes, accommodations require extensive facilities/property management, housekeeping, maintenance, accounting, marketing, human resources, security, and customer service staff. Food and beverage, event planning, transportation, recreation, and other support services are often provided. Digital technologies assist operations, communication, guest interactions, and back-of-house management .

Ownership and management arrangements represent another facet of accommodations. Major chains own and operate properties worldwide. Franchising enables global brands to expand via local owner-operators. Management companies contract to operate independent properties on behalf of owners. Timeshares sell fractional unit ownership for vacation use. Condo-hotels feature privately owned units with rental pools.

Trends shaping accommodations include rising guest expectations, mobile and self-service options, sustainability, personalized service, boutique concepts, mixed-use developments, social lodging , home and apartment rentals, and aura of community. Looking ahead, accommodations must continuously innovate to serve evolving guest needs across diverse market segments. By providing welcoming, memorable guest experiences, accommodations uphold their vital role in tourism and hospitality.

7.2 The History Of Accommodations As An Industry

7.2.1 The History Of Accomodations

The development of accommodations for travelers traces back thousands of years across cultures worldwide. Inns , hostels, caravansaries , and other lodging facilities arose to serve the needs of merchants, pilgrims, explorers and other wayfarers journeying far from home.

In ancient Greece, inns and taverns were established along major roadways to accommodate travelers. Greek and Roman texts referenced lodgings offering rooms, food and drink, and stabling for horses. During the Roman Empire’s peak from 100-500 AD, a vibrant network of inns and rest houses enabled trade, communications, and transportation across the vast territory.

Medieval Europe saw a resurgence of travel accommodations, especially for religious pilgrimages. Monasteries and abbeys opened their doors for pilgrim lodging. The Hospitality of Saint Thomas network in England offered guest houses to aid travelers. Coaching inns provided food, drink, rest and change of horses along stagecoach routes as overland travel expanded.

In the Islamic world, elaborately decorated caravansaries lining trade routes gave merchants space to sleep, eat, worship, conduct business, and tend animals. Distinctive courtyard designs integrated stables, shops, mosques, and ample guest rooms. Efficient waste and water systems supported these early roadside hotels.

Historical documents show lodging houses existing in ancient India, Cambodia, and China. In Japan’s Edo period (1603-1867), ryokan traditional inns offered overnight accommodation, hot springs baths, and regional cuisine for traveling samurai and merchants.

As global trade accelerated from 1500-1800, colonial empires expanded across new frontiers. Seeking trading posts and territories, explorers like Columbus and Magellan required onboard provisions and lodging during long risky journeys. Shipping technology advancements enabled reliable transoceanic travel and transport.

The European Grand Tour had catered to aristocrats, but railways now enabled middle-class vacations. Seaside resorts boomed as doctors recommended saltwater immersion for health, spurring coastal hotels. Switzerland’s mountain scenery and clean air attracted tourists, leading to alpine resorts and mountaintop hotels.

Britain passed an 1871 act granting workers vacation time (History Extra, 2019). New industries like paid holidays and excursion trains brought countryside and coastal getaways within reach. Buxton, Bath, and seaside towns expanded hotels, boarding houses, and amenities for Victorian holidaymakers.

Thomas Cook revolutionized tourism by organizing group train tours and packages. His trailblazing Cook’s Tours started in 1841 and included lodging vouchers (Newmeyer, 2008). Demand drove development of hotels aligned to rail lines and tourist interest, setting patterns for today’s hospitality infrastructure.

In the late 1800s, improving prosperity and transportation access expanded leisure travel, catalyzing new waves of hotel development worldwide. As tourism grew more democratic, hotels adapted to serve broader audiences seeking rejuvenation through nature, culture, adventure and novelty.

The Industrial Revolution brought improved roads and transportation options like trains and steamships. Business and leisure travel expanded in Victorian England as railways connected cities and country towns. Coaching inns evolved into railway hotels that met passenger needs. Resort hotels emerged in coastal and mountain destinations.

Late 1800s luxurious hotels became emblematic of advancing civilization and economic progress. Grand properties like the Langham Hotel in London (1865) and Palace Hotel in San Francisco (1875) boasted lavish decor, advanced amenities, and exceptional service for affluent clientele. Phrases like “built like a grand hotel” entered parlance to suggest splendor.

North America’s expanding rail network increased accessibility to natural wonders like Niagara Falls, Yellowstone and Yosemite. Grand railway hotels catered to elite travelers with lavish accommodations in scenic locations. Rustic lodges and camps served outdoorsy adventure seekers.

Back-to-nature concepts influenced architecture. Swiss chalet style emerged in Alpine resorts before spreading worldwide for its rustic charm. Arts and Crafts motifs evoked handmade simplicity, as seen in lodges in U.S. national parks and Canadian railway hotels. California’s redwood Park Gate Tree offered a novel drive-through experience.

Seaside holidays gained favor for purported health benefits. Clear air, sea bathing, promenades, amusement piers, and saltwater swimming attracted Victorian-era travelers. Coastal hotels featured large verandas, marine themes, and seaside pastimes. Proximity to beaches and waters defined early resorts.

Imperialism opened European access to exotic destinations like Egypt, Asia and the Americas. Luxury hotels catered to intrepid tourists, bringing familiar pampering to far-flung locales. Cairo’s Mena House Hotel overlooked pyramids for archeological tours. Raffles Hotel in Singapore offered colonial elegance.

Japan ended its isolationist policies in the 1850s. Seeking modernization and trade, Japan built Western-style hotels to attract foreign businessmen and dignitaries. Blending Japanese hospitality with Western amenities laid groundwork for its tourism industry.

Natural springs gained medicinal acclaim, spurring wellness resorts with plush spa hotels. Hydrotherapy resorts clustered in Germany’s Black Forest and along the Austro-Hungarian Empire’s Adriatic coast. Hotels provided therapeutic bathing, relaxation, and healthy cuisine.

Mexico became known for spectacular scenery and indigenous cultures. Resorts developed along rail lines leading south from the U.S., merging cosmopolitan amenities with regional art, architecture and activities.

Posh mountain getaways arose near eastern U.S. cities, starting with Catskill resorts and spreading westward. Summit hotels like New Hampshire’s Mount Washington Hotel captivated urbanites with cool climes and wide-open vistas. The Wild West beckoned at national park lodges like Old Faithful Inn in Yellowstone.

Family summer vacations gained popularity, led by beachside destinations with amusement parks and child-friendly attractions. New York’s Coney Island and New Jersey’s Atlantic City pioneered family leisure tourism, inspiring seaside hotels nationwide.

Inns and hotels in Asia, Africa, South America and the Middle East modernized and expanded through the early 20th century, blending local influences with Western hospitality models. Rail hotels in India like the Taj Mahal Palace Hotel combined regal ambience with efficiencies like electricity and elevators.

By the early 1900s, global tourism was booming. Hotels worldwide modernized and expanded as leisure travel became ingrained across cultures and classes. With growing demand across market segments, hotels solidified their enduring role in getaways for relaxation, enrichment and creating lasting memories. Furthermore, there were enormous transformations in ground and air transportation that revolutionized hotel development and guest expectations.

As automobile travel expanded, roadside motels evolved from modest motor courts to nationwide chains offering convenient drive-up rooms, parking, and amenities tailored to motorists. Brands like Holiday Inn and Howard Johnson fueled growth through chain expansion and standardization. The rise of roadtrips and improved highways allowed motels to displace downtown railway hotels in popularity. Further enhancing automobile travel, campgrounds enabled tent and RV camping.

Meanwhile, commercial aviation was taking flight, necessitating airport hotels. Proximity, speedy check-ins, meeting space and park and fly packages served air travelers’ needs. As onboard meals declined, hotel dining gained importance. Easy reservations and guaranteed rooms also suited jetsetters.

The postwar economic boom expanded business and leisure air travel. Resort hotels in destinations like Las Vegas, Miami and Disney World blended hospitality with entertainment, recreation and amenities. Convention hotels offered extensive meeting facilities near major airports. Brands multiplied rapidly through franchising, with over one million guest rooms operating under brands like Best Western by the 1970s (Meyer, 2018).

Globalization and international air travel allowed hotel chains to spread worldwide. Opportunities grew through deregulation , while boutique hotels emerged to provide unique lifestyle experiences. More than ever, hotel design and amenities became crucial brand differentiators.

Technology evolution continues transforming hospitality. Online booking disrupted traditional distribution channels. Smart hotels integrate mobile apps, customization, virtual assistants, and responsive service models. Experiential travel and unique accommodations like tiny homes adapt to modern guests.

Today’s accommodations industry balances heritage with innovation. Blending world-class comfort, convenience, and individuality, hotels retain their timeless role of renewing travelers far from home.

7.3 Today’s Hotel Industry

7.3.1 Classifications

Hotels are classified in different ways to denote quality, amenities, size, and type of experience. Common classification methods include star ratings , diamond ratings , eco-certifications , chain scales , and industry segmentations. These help consumers select accommodations matching their needs and budgets. Team members building careers in the accommodation sector share transferable skills but cannot necessarily switch from one classification to another seamlessly. Making strategic decisions about one’s career pathway is integral to ensure barriers are not bumped up against later in one’s career.

7.3.1.1 Star Ratings

The most widely recognized ratings are star systems designating luxury levels. Many countries use 5-star scales where more stars indicate nicer amenities and service. 1-star properties offer budget basics while 5-stars are opulent. Ratings are assigned by government tourist boards or independent organizations.

Critics argue star ratings are subjective and inconsistent globally. There is no standard for the star rating system. In most regions, hoteliers can call their property any number of stars that they want. This can be leveraged as a marketing ploy to unsuspecting consumers. There are even hotels that refer to themselves as 6-star or 7-star properties. These are marketing terms, not reliable denotations.

7.3.1.2 Diamond Ratings

Hospitality ratings firms such as AAA in the U.S. or CAA in Canada inspect and rate hotels using a diamond system (5 maximum). Diamonds indicate quality, physical attributes and level of service. Diamond ratings are generally regarded to be the most reliable in countries where organizations such as AAA or CAA operate because of the strict standards; see AAA’s Diamond Rating Guidelines for Lodging.

7.3.1.3 Eco-Certifications

Leadership in Energy and Environmental Design (LEED) is a voluntary certification program that provides independent verification of buildings’ sustainable design, construction, and operations. This is the most well-known eco-certification in the U.S., including beyond the confines of the hotel industry specifically. LEED certification (U.S. Green Building Council, Inc., n.d.) is sometimes obtained for new property construction and major renovations for hotels and any other type of building. This certification evaluates factors like site selection, water and energy efficiency, materials, and indoor environmental quality. It does not evaluate management, which is a primary shortcoming of LEED in a hotel context.

LEED does not evaluate ongoing operations such as management after the project is completed. Some criticize LEED as not fully applicable to hotel sustainability, since the hospitality industry is service-driven. Naysayers argue that hotel sustainability encompasses more than just eco-friendly buildings, requiring behavioral dimensions around culture, education, team member benefits such as pay, and communication. Thus, while LEED certification has value for hotels undertaking new development, it provides limited utility in benchmarking the full range of a hotel’s environmental impacts and sustainability practices after opening. More holistic environmental management systems and eco-labels may better represent hotel sustainability leadership. Yet, hotel specific and more holistic eco-certifications are not as well known or recognized.

Unlike LEED certification which focuses primarily on fixed assets like buildings, the International Standardization Organization (ISO) 14000 series provides guidance on organizational processes for environmental management. ISO 14001 specifically outlines standards for an effective environmental management system (EMS) within an organization to continuously improve sustainability performance (International Organization for Standardization, 2015). This framework for aspects like objective-setting, monitoring, corrective actions, and compliance can be applied to hotel operations and management. However, ISO 14001 certification involves time-intensive auditing which can deter adoption, especially for small hotels. Critics also argue that compliance with ISO 14001 does not guarantee improved environmental results. While the ISO 14000 framework could help hotels take a more systematic approach to sustainability, simply displaying an ISO 14001 “eco-label” may not fully reflect meaningful commitment versus comprehensive environmental programs tailored for hospitality.

Green Key Global (GKG) is another mainstream eco-certification for the lodging industry. Green Key Global began in Denmark in 1994 and has since grown into the behemoth it is today over a period of approximately 25 years. In fact, it is the world’s largest eco-certification by many metrics (Jensen, n.d.).

Green Key Global is an international eco-labeling program designed for the hospitality industry to encourage sustainable practices in hotels and other tourism establishments. Owned and managed by the Foundation for Environmental Education (FEE), a non-profit organization, it sets global standards for environmental responsibility and sustainable operation within the tourism industry.

The program assesses establishments based on a series of stringent criteria, including energy and water conservation, waste management, and environmental education. These standards ensure that certified properties adhere to essential environmental performance measurements, effectively reducing their ecological footprint. Widely adopted across the globe, Green Key Global has certified thousands of establishments in over 65 countries, demonstrating a growing commitment to environmental sustainability in the hospitality sector.

There are more than 400 global eco-certifications (Nygaard, 2023). Approximately 120 of these are based in the U.S. Few are well-known. One of the best practices in eco-certification is for the parameters to be location-specific due to localized environmental and socio-cultural concerns. This means that certification programs often have a difficult time effectively marketing themselves and being meaningful.

7.3.1.4 Chain Scales

Major hotel chains utilize branded chain scales to categorize their properties into distinct market segments. Chain scales are typically labeled with names indicating the luxury level and amenities such as Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, Economy, and Budget. Smith Travel Research (STR) , begun by Randy Smith is based in Hendersonville, TN (a suburb of Nashville). STR is the privately owned company that identifies and classifies hotels into the aforementioned labels. STR does many other things including consulting and data analysis. Their competitive analysis (comp set) is known as a STR Report. This report makes STR one of the most important organizations in the global lodging industry.

These chain scale segments clarify the positioning, guest expectations, and standards that will be delivered by each property flying the parent brand’s flag. Luxury and Upper Upscale hotels feature elegant design, upscale amenities, enhanced services, premium bedding, and prime locations. Midscale and Economy properties focus on providing essential accommodations and basics needed for a comfortable night’s stay at affordable rates. Chains carefully define standards regarding room sizes, bed types, internet access, lobby experience, fitness options, dining, meeting facilities, and leisure amenities appropriate for each chain scale segment. Maintaining these distinctions preserves the brand promise and helps travelers select the right experience level for their needs. From a management perspective, chain scales allow parent companies to set parameters and uphold quality control across a portfolio that may encompass thousands of hotels in numerous countries.

These are the generally accepted chain scales:

Luxury Hotels: Luxury hotels represent the pinnacle of hospitality, providing unparalleled service, opulent accommodations, and an array of high-end amenities. These properties cater to discerning travelers seeking an exceptional and indulgent experience. From elegant and spacious guest rooms to lavish spas, fine dining restaurants, and personalized concierge services, luxury hotels spare no expense in creating an atmosphere of luxury and exclusivity. The staff is highly trained to anticipate guests’ needs and provide personalized attention to ensure a truly memorable stay. With meticulous attention to detail, these hotels often feature exquisite decor, premium linens, state-of-the-art technology, and exclusive facilities such as private pools, upscale lounges, and even dedicated butler service.

Upper Upscale Hotels: Upper upscale hotels offer a refined and sophisticated experience, combining upscale amenities with a focus on attentive service. These properties provide a balance between luxury and practicality, appealing to both leisure and business travelers who seek a higher level of comfort and service. Guest rooms in upper upscale hotels are well-appointed, featuring modern decor and high-quality furnishings. The amenities often include fitness centers, business centers, multiple dining options, and spacious meeting and event spaces. The staff is trained to provide personalized service, ensuring guests feel valued and well-cared-for during their stay. These hotels often cater to travelers who appreciate a luxurious experience without the extravagant price tag.

Upscale Hotels: Upscale hotels offer a comfortable and elevated experience, catering to travelers who desire quality accommodations and amenities without the price tag of luxury or upper upscale properties. Guest rooms in upscale hotels are tastefully designed with modern decor and functional furnishings. Amenities typically include fitness centers, business centers, on-site dining options, and meeting spaces to accommodate business travelers and small to mid-sized events. The service is attentive, with staff trained to provide a welcoming and professional atmosphere. Upscale hotels strike a balance between affordability and offering a higher level of comfort, making them popular among both business and leisure travelers seeking a pleasant and convenient stay.

Upper Midscale Hotels: Upper midscale hotels cater to travelers who value a comfortable and reliable experience at an affordable price. These properties focus on providing well-maintained accommodations and essential amenities for guests’ convenience. Guest rooms in upper midscale hotels are typically spacious and equipped with standard amenities, including comfortable bedding, work desks, and in-room entertainment options. The hotels often feature fitness centers, complimentary breakfast, and business centers to cater to both leisure and business travelers. The service is friendly and efficient, aiming to meet guests’ needs promptly and ensure a pleasant stay.

Midscale Hotels: Midscale hotels offer comfortable and practical accommodations at an affordable price point. These properties provide essential amenities and services for guests seeking a reliable and convenient stay. Guest rooms are designed with functionality in mind, offering comfortable bedding, workspaces, and standard amenities such as Wi-Fi access and in-room entertainment. Midscale hotels often have dining options on-site or in close proximity, as well as basic fitness facilities. The service is friendly and efficient, ensuring guests have a hassle-free experience during their stay.

Economy Hotels: Economy hotels provide budget-friendly accommodations for cost-conscious travelers seeking simple and no-frills lodging options. These properties prioritize affordability without compromising on cleanliness and comfort. Guest rooms in economy hotels are modestly furnished and offer essential amenities for a comfortable stay, such as comfortable bedding, basic toiletries, and Wi-Fi access. While the amenities and facilities may be limited, economy hotels strive to provide a clean and safe environment for guests, often offering complimentary breakfast and convenient access to transportation hubs or major attractions. The service is efficient and focused on meeting guests’ basic needs, making economy hotels a practical choice for travelers on a tight budget.

Hotels do not necessarily get to self-define themselves into categories. Organizations such as Smith Travel Research (STR) function as arbiters by identifying the scale that a hotel property fits into. For example, STR created the Luxury, Upper Upscale, Upscale, Upper Midscale, Midscale, Economy, and Budget denotation that is widely accepted globally.

7.3.1.5 Smith Travel Research (STR) Classifications

STR Global plays a vital role in the hotel industry by providing global data benchmarking , analytics , and forecasting . STR operates the most comprehensive database of hotel performance metrics used for competitive analysis (comp set) . Properties participate by submitting monthly data on metrics like occupancy , average daily rate (ADR) , revenue per available room (RevPAR) , and sources of demand (STR, 2022).

These massive data feeds allow hotels to assess their positioning against a competitive set of similar hotels in the market. The results inform pricing, marketing, budgeting, and other decisions. Beyond benchmarking, STR’s data feeds management contracts and incentive bonuses based on performance thresholds. STR data is powerful in part because a majority of hotel managers in the U.S. and many other countries have a bonus structure based on STR’s comp set results. How could tens of thousands of hotel manager’s bonuses be based on STR data, you ask?

Hotels voluntarily submit performance data to STR Global each month in order to benchmark themselves against competing properties. By sharing key metrics like occupancy percentage, average daily rate (ADR), revenue per available room (RevPAR), and demand breakdowns, hotels gain access to STR reports comparing their results against a competitive set of similar hotels in the market. Analyzing this benchmarking data helps hotels evaluate their positioning and pricing. Participating hotels send their latest monthly data by the 15th of the following month through STR’s secure online portal. After validation, STR incorporates the data into its extensive database to produce benchmarking reports that subscribers can access through STR’s cloud-based analytics platform. For hoteliers, the benefits of contributing data and receiving the resulting comparative analytics makes participation in STR’s system an invaluable tool for maximizing revenue.

STR is not only about hotel manager bonus structures though. STR data also drives ownership decisions. For example, STR classifies hotels within industry segments that underpin market analysis. Another example is that STR provides valuable demand forecasting and consulting services to over 80,000 subscribing hotels and organizations globally, representing approximately 10.5 in 190 countries (CoStar Group, n.c.). From informing strategies to structuring management agreements, STR data and insights empower better decision-making across the hotel industry. One of the insights STR provides is hotel market segmentation.

7.3.1.6 Summary of Classifications

STR is important to the global hotel industry. Numerous firms worldwide provide valuable services to the hospitality industry through market segmentation models, consulting, certifications, and benchmarking data. These offerings assist hotels in enhancing performance, positioning, and professional expertise.

Kalibri Labs provides detailed segmentation of the hotel market based on factors like quality, amenities, location, and demand generators. Hotels are classified into categories like luxury, upper upscale, upscale, midscale, economy and budget. Kalibri tracks over 60,000 properties worldwide, including 35,000 U.S. hotels (Kalibri Labs, n.d.), to inform these distinctions. Their segmentation allows deep analysis of competitive dynamics across chain scales within a given market.

CBRE Hotels, the hospitality division of commercial real estate firm CBRE, acquires hotel performance data to produce an annual Trends in the Hotel Industry report. Leveraging data from over 7 million hotel rooms globally, this free report (CBRE Hotels Research, 2023) offers macro-level benchmarking insights on metrics like occupancy, average daily rate (ADR), revenue per available room (RevPAR), and revenue multiples. CBRE’s hotel consulting services were previously known as PKF . PKF was a powerful force in the global hotel industry. The organization had a global presence and an enormous amount of historical data that CBRE now controls. Historical context such as CBRE controls aids forecasting for hotel professionals.

Hospitality consultancy HVS takes a nuanced approach to market analysis and appraisals through bespoke hotel classifications reflecting destinations’ unique attributes. Adjusting for factors like seasons, policies, and infrastructure provides contextual insights. HVS consultants are involved throughout the hospitality real estate lifecycle. The company’s suite of consulting services aids investment, development, marketing, and asset management decisions.

HotStats provides cloud-based analytics for benchmarking hotel performance. Data aggregation from over 120 brands and 600 markets (HotStats, n.d.) enables subscribers to analyze metrics against custom competitive sets and industry averages. The platform features drill-down tools to uncover drivers and opportunities. In many ways, HotStats is a more refined tool to view STR and similar data.

Certification bodies provide credibility to professionals. The American Hotel & Lodging Association (AH&LA) offers Certified Hotel Administrator (CHA) training to validate proficiency in hospitality management, law, finance, and leadership. The Hospitality Sales and Marketing Association International confers Certified Hospitality Marketing Executive (CHME) status for marketing skills mastery. HSMAI offers Certified Hospitality Digital Marketer (CHDM) to recognize expertise in digital marketing and analytics for the hospitality industry. The Hospitality Financial and Technology Professionals (HFTP) association administers Certified Hospitality Technology Professional (CHTP) to validate proficiency overseeing technology systems. STR offers Certified Hospitality Industry Analytics (CHIA). These certifications help validate specialized skills and knowledge.

Sustainability certifications, including Green Key as the largest global certifier of ‘greening’ in the lodging industry, benchmark hotels’ environmental and social responsibility initiatives. Assessment criteria for Green Key span operational areas like water, waste, energy, cleaning, food, and community engagement. Guest education and staff engagement are also measured. Badges signal meeting corporate social responsibility (CSR) goals. With this written, Green Key Global has been under increased pressure to remove elements of greenwashing that may exist in its metrics.

The International Standards Organisation (ISO) provides globally recognized standards for many industries, including hospitality. ISO publishes guidelines for quality management, risk management, sustainability, food safety, IT security and more that hotels can adopt to improve processes. ISO does not confer formal certifications, but third parties audit compliance.

In summary, no single framework can capture the hotel industry’s complexity. Leading global providers analyze key dimensions like quality, segment, performance metrics, staff capabilities, and operational processes through targeted models, data, certification and expertise. Together, these tools yield insights to inform strategies and growth.

7.3.1.1 Hotel Types

It is common to differentiate hotels by their purpose. There are numerous ways to differentiate hotel properties by purpose. This section on hotel types describes some of the most common hotel types.

It is important to know hotel types before entering a career pathway in the lodging industry. At times, students choose to work at hotels that they want to stay at. Working at a hotel is different than staying at a hotel though. Someone’s personality and preferences for a workplace environment should be drivers behind choosing a career trajectory and hotel to work at. Furthermore, properties can operate in a unique manner based on their location. For example, a resort property or airport property require a different set of operational understandings. Building a sustainable career pathway, beyond choosing simply the accommodation sector, can be important. It begins with choosing the types of properties you are interested in working with.

Airport: Airport hotels target airline crews and travelers with overnight layovers, offering convenient accommodations near airports. These properties prioritize easy access to airport terminals and provide free transportation services, ensuring guests can quickly reach their flights or rest during long layovers. Beyond daily rates, many airport hotels offer hourly rates, catering to travelers who require short-term stays. These properties are designed to provide comfort and convenience for guests in transit, with soundproofed rooms, 24-hour reception, and amenities such as fitness centers, restaurants, and business facilities to cater to their specific needs.

All-Inclusive: An all-inclusive hotel is a property that offers complete packages, bundling overnight accommodations with a range of value-added amenities and services. These packages often include food, beverages, activities, and gratuities, providing guests with a hassle-free experience where everything is taken care of. With an all-inclusive hotel, guests can enjoy unlimited access to dining options, entertainment, and various recreational activities without having to worry about additional costs.

All-Suite: An all-suite hotel is a property that exclusively consists of spacious guestrooms offering more space and furniture than a typical hotel room. These suites often feature a designated living area or multiple rooms, providing guests with a comfortable and home-like environment during their stay. With separate sleeping and living areas, guests have the flexibility to relax, work, or entertain without feeling cramped. All-suite hotels are popular among families, business travelers, and those seeking a higher level of comfort and convenience.

B&B/Inn: Bed and breakfast (B&B) or inn properties are independently owned and operated establishments that typically offer a cozy and personalized experience. These properties usually have 20 rooms or fewer and include breakfast in the room rates. Guests can enjoy a warm and inviting atmosphere, often with a resident/owner innkeeper who provides attentive service and insider tips about the local area. B&Bs and inns offer a more intimate setting, allowing guests to connect with the local culture and enjoy a unique and charming stay.

Boarding House: Boarding houses are similar to bed and breakfasts (B&Bs) but are intended for longer stays, typically ranging from a few nights to fewer than 30 nights. These properties offer comfortable accommodations, often in a home-like setting, and provide services such as daily housekeeping and meals. Boarding houses cater to individuals or groups who require temporary lodging for work assignments, relocation, or extended leisure stays. They offer a welcoming and inclusive environment, creating a sense of community for guests during their time away from home.

Boutique: Boutique hotels are known for their distinctive and atypical amenities and room configurations. These properties are often independent, with fewer than 200 rooms, and focus on providing a high level of service and a unique guest experience. Boutique hotels cater to travelers seeking authenticity, cultural immersion, and personalized attention. They may feature stylish and design-oriented interiors, curated artwork, and offer specialized services or themed accommodations. Boutique hotel chains such as Autograph Collection, Dream Hotel, and Kimpton Hotels are recognized for their individuality and the memorable experiences they offer.

Business: Business hotels cater to the specific needs of business travelers. These properties are typically located in downtown areas or business districts, offering convenient access to corporate offices, convention centers, and transportation hubs. Business hotels provide a range of services and amenities that meet the requirements of business travelers, such as well-equipped meeting rooms, high-speed internet access, business centers, and executive lounges. These properties prioritize efficiency, comfort, and convenience, ensuring that guests have a productive stay while attending to their work-related commitments.

Condo: Condo hotels consist of individually and wholly-owned condominium units that are included in a rental pool operated and serviced by a management company. These properties provide a combination of the comforts of home and the convenience of hotel services. Guests can enjoy the privacy and spaciousness of a condo unit along with access to amenities and services such as housekeeping, concierge, and maintenance. Condo hotels are popular choices for extended stays or for travelers who prefer a self-catering and independent lifestyle while still having access to hotel-like amenities.

Conference Center: A conference center hotel has a major focus on conference facilities and adheres to the guidelines set by the International Association of Conference Centers (IACC). These properties are designed to cater to large meetings, conferences, and corporate events.

Conference center hotels offer extensive meeting spaces, state-of-the-art technology, and dedicated services to ensure successful events. They provide a complete package for business travelers, combining comfortable accommodations with convenient on-site meeting facilities and support services.

Convention Center: Convention center hotels are properties with a minimum of 300 rooms and large meeting facilities of at least 20,000 square feet. While similar to conference center hotels, convention center hotels are not part of the Conference Center Group (CCG). These hotels are strategically located near convention centers and cater to attendees of major conventions, exhibitions, and trade shows. They provide convenient accommodations for participants and offer amenities and services tailored to the needs of convention-goers.

Destination Resort: A destination resort is a property that appeals to leisure travelers and is considered a destination in itself. These resorts are often located in popular vacation areas and offer extensive amenities and activities to keep guests entertained throughout their stay. Destination resorts typically have large and comprehensive facilities, such as multiple restaurants, pools, spas, golf courses, and recreational areas. These properties provide a complete vacation experience where guests can relax, engage in various activities, and enjoy the resort’s unique offerings without needing to leave the premises.

Extended Stay: Extended stay hotels are specifically designed to cater to guests who require accommodations for longer periods, typically quoting weekly rates. These properties offer amenities and services that cater to the needs of guests staying for extended periods, such as fully equipped kitchens or kitchenettes, on-site laundry facilities, and spacious living areas. Extended stay hotels provide a home-away-from-home experience, allowing guests to settle in comfortably and maintain their routines during longer stays, whether for business, relocation, or personal reasons.

Full-Service Hotel: Full-service hotels are typically upscale, upper upscale, or luxury properties that offer a wide range of onsite amenities and services. These hotels go beyond the basics and provide guests with a comprehensive experience, including multiple dining options, well-equipped fitness centers, spa facilities, concierge services, and extensive meeting spaces. Full-service hotels strive to meet the needs and preferences of various guest segments, offering convenience, comfort, and a high level of service for both leisure and business travelers.

Casino (Gaming): Gaming hotels have a major focus on casino operations. These properties typically offer a wide range of casino games including slot machines, table games, and poker rooms, alongside accommodations, dining options, and entertainment venues. Casino hotels cater to guests who enjoy gambling activities and seek a vibrant and lively atmosphere where they can try their luck and indulge in entertainment offerings.

Golf: Golf hotels are properties that feature an onsite golf course as part of their operations. These properties provide golf enthusiasts with convenient access to well-maintained courses and related amenities. Golf hotels often offer golf packages, practice facilities, golf pro shops, and services tailored to golfers’ needs. They are popular among individuals and groups seeking a golf-focused vacation or those looking to combine their love for the sport with leisure and relaxation.

Hostel: Hostels are establishments that provide the cheapest possible accommodations, usually in shared spaces and rooms with bunk beds. These budget-friendly accommodations cater to backpackers, solo travelers, and those seeking a social and communal travel experience. Hostels offer dormitory-style rooms, communal kitchens, and common areas where guests can interact, share experiences, and forge new friendships. They often organize social activities and events, creating a vibrant and lively atmosphere for travelers on a tight budget.

Inns: Inns are establishments that provide accommodations and food, with a focus on catering to clientele who are staying short-term. These cozy and inviting properties offer a warm and welcoming atmosphere, often located in charming countryside or historic settings. Inns traditionally offer comfortable rooms and a restaurant or pub onsite, where guests can enjoy delicious meals and drinks. They provide a personalized and intimate experience, with attentive innkeepers who go the extra mile to ensure guests have a pleasant stay.

Limited Service: Limited-service hotels are properties that offer limited facilities and amenities, often without a full-service restaurant. These hotels are commonly found in the economy, midscale, or upper midscale segments. While they may offer fewer on-site amenities compared to full-service hotels, limited-service properties still provide comfortable accommodations, complimentary breakfast, Wi-Fi, and other essential services. They are popular among budget-conscious travelers or those seeking a straightforward and convenient stay without extensive additional features.

Lifestyle Brand: Lifestyle brand hotels are a group of properties operating under the same brand that adapt to reflect current trends. These brands aim to provide a unique and trendy experience that aligns with the preferences of contemporary travelers. Lifestyle brand hotels often feature modern designs, vibrant atmospheres, and social spaces where guests can connect and engage. They offer amenities and services that cater to the lifestyle and interests of their target audience, providing a distinct and memorable stay. Examples of lifestyle brand hotels include AC Hotels by Marriott International, Aloft by Starwood Hotels & Resorts Worldwide, and Radisson Red by Carlson.

Lodge: Lodges are small establishments that specialize in providing recreational and leisure activities for their guests. These properties are often nestled in scenic locations, such as mountains, forests, or national parks, offering guests a unique opportunity to connect with nature and enjoy outdoor adventures. Lodges typically feature comfortable accommodations, common areas for socializing, and a range of outdoor facilities and amenities. Guests can participate in activities like hiking, fishing, skiing, or wildlife watching, immersing themselves in the natural beauty and tranquility of their surroundings.

Motels: Motels are also unique properties. Understandings of motels are different in many areas of the world. In the United States, motels are generally differentiated from other types of accommodations by having doors that open to the outdoors, normally a parking lot, in lieu of an interior corridor. Motels have historically served motorists, been 3 floors or less, and focused on the economy sector of the lodging industry. In recent years, many motels have been renovated to become higher-end properties though. For example, the Hotel Valley Ho in Scottsdale, Arizona, is a higher-end hotel located in Scottsdale’s prestigious Fashion Square neighborhood. This property can be defined as a motel as the doors open to exterior locations rather than interior corridors.

New Build: New build properties refer to hotels that are built from the ground up, rather than being conversions or buildings that were not previously hotels. These properties are newly constructed and often showcase modern design, state-of-the-art facilities, and the latest technology. New build hotels provide guests with a fresh and contemporary experience, incorporating the latest industry standards and trends in their design, amenities, and services.

Resorts: Resorts are hotel properties that feature entertainment or recreational activities as core tenets of operations. These properties are hotels that require unique approaches to operations and management. For example, the 405-acre Hyatt Regency Lost Pines features horseback riding, a long lazy river, an 18-hole golf course, fire pits, and more.

Ski: Ski hotels are properties that offer onsite access to ski slopes or are located in proximity to ski resorts. These properties cater to skiers and winter sports enthusiasts, providing convenient access to ski lifts, equipment rentals, and related amenities. Ski hotels often offer services such as ski storage, après-ski facilities, and transportation to and from the slopes. They provide a cozy and convenient base for guests to enjoy their skiing adventures and the surrounding mountainous landscapes.

Soft Brand: Soft brand hotels are collections of properties that allow owners and operators to affiliate with a major hotel chain while retaining their unique name, design, and orientation. Soft brand hotels offer the benefits and support of a major chain, such as reservation systems and loyalty programs, while preserving their distinct identity and character. These hotels cater to guests seeking a more personalized and individualized experience while enjoying the advantages of a recognized brand. Examples of soft brand hotels include Ascend Hotel Collection by Choice Hotels International, Autograph Collection by Marriott International, and The Luxury Collection by Starwood Hotels & Resorts Worldwide.

Spa: Spa hotels are properties that have an onsite spa facility and a dedicated full-time staff offering a range of spa treatments and wellness services. These properties focus on providing a serene and rejuvenating environment where guests can relax, unwind, and pamper themselves. Spa hotels often offer a variety of treatments, including massages, facials, body wraps, and hydrotherapy, complemented by amenities such as saunas, steam rooms, and fitness centers. They provide an oasis of tranquility and wellness, allowing guests to escape the stresses of daily life and indulge in rejuvenating experiences.

Timeshare: Timeshare properties typically consist of resort condominium units, in which multiple parties hold property use rights for specific periods. Each timeshare owner is allotted a designated period of time when they can use the property, often on a recurring annual basis. Timeshare properties offer the advantages of owning a vacation home without the full financial commitment and responsibilities. Guests can enjoy the comfort and amenities of a resort-style accommodation during their allotted time, providing a home away from home for their vacations.

Waterpark: Waterpark hotels are establishments that combine lodging with an aquatic facility. These properties typically have a minimum of 10,000 square feet of waterpark space, including features such as slides, tubes, and a variety of water play elements. Waterpark hotels provide families and guests of all ages with a fun and exciting experience, offering access to thrilling water slides, lazy rivers, wave pools, and other water attractions. They often provide additional amenities such as game rooms, restaurants, and entertainment options to create an immersive and enjoyable waterpark resort experience.

7.4 Key Hotel Metrics

Performance metrics are essential in the hotel industry for monitoring success, uncovering opportunities, and guiding decisions. Key indicators provide insights on the property’s financial health, operational efficiency, and market position. This chapter will explore major hotel metrics and their significance.

Average daily rate (ADR), revenue per available room (RevPAR), and occupancy rate constitute the foundational trio of hotel metrics. ADR measures pricing and revenue, while RevPAR evaluates market penetration. Occupancy assesses demand against room capacity. Collectively, these indicators help assess financial performance and operating strengths.

Emerging metrics like gross operating profit per available room (GOPPAR) , return on investment (ROI), and average length of stay (ALOS) provide additional dimensions. GOPPAR determines bottom-line profitability. ROI analyzes investment returns, while ALOS signals guest behavior patterns. Examining relationships between metrics from multiple angles empowers informed strategies.

Hotel professionals need to remember that key metrics provide vital insights into the operational and financial performance of hotels. The most successful hoteliers allow data to become an important part of their decision-making. ADR, RevPAR, and occupancy offer core indicators for revenue generation, demand trends and market position. These are the core metrics for most professionals at the property level and in operations. Emerging metrics such as GOPPAR, IRR , cap rate , and ROI enable deeper analysis of profitability, investment returns, and consumer behavior (Altexsoft, 2021).

Applying metrics cohesively and consistently over time provides key decision-making inputs on pricing, asset valuation, cost management, and financial planning. Hotel managers are encouraged to fully utilize the array of metrics now available to guide strategies and maximize enterprise value.

7.4.1 Average Daily Rate (ADR)

ADR represents the average rental income per occupied room over a given timeframe. It is calculated by dividing total room revenue by rooms sold. ADR demonstrates a hotel’s pricing power and revenue generation performance.

ADR is a crucial metric for revenue management. Adjusting rates across seasons, days, room types, and booking lead times allows hotels to maximize yield. Competitor and historical ADRs help set optimal pricing. Promotional offers, value-added packages, and premium room upgrades can lift ADR. Market conditions significantly sway ADR, necessitating constant monitoring.

7.4.2 Revenue per Available Room (RevPAR)

RevPAR measures total room revenue relative to total rooms available for sale. Calculated by dividing total room revenue by available rooms, RevPAR combines ADR and occupancy metrics to indicate market penetration and hotel income potential.

As an indicator of financial productivity, RevPAR is highly useful for assessing property performance and competitive position. Changes in RevPAR over time or against competitors inform strategic decisions on pricing, operations, amenities and market focus. Driving demand through sales, marketing and distribution channel management is key to optimizing RevPAR. High RevPAR signifies strong consumer desire coupled with effective revenue management.

7.4.3 Occupancy Rate

The occupancy rate metric represents the percentage of available rooms actually sold and occupied over a given period. It is derived from dividing number of rooms occupied by number of rooms available.

Occupancy measures hotel demand against room capacity. As a utilization metric, it supports analyses of peak versus low demand seasons to guide staffing, budgeting and revenue management. Occupancy rate works together with ADR and RevPAR to evaluate pricing power during high demand periods. Balancing occupancy and ADR is key for profitability.

7.4.4 Gross Operating Profit per Available Room (GOPPAR)

GOPPAR evaluates hotel profitability by determining gross operating profit achieved based on capacity. Calculated by subtracting operating expenses from RevPAR, GOPPAR excludes taxes, depreciation, rent, and interest.

This key profitability metric assesses net income generation relative to total rooms. GOPPAR helps evaluate potential returns on investment. Properties with high GOPPAR have strong revenue streams and efficient cost management to enhance bottom line income. GOPPAR must be sufficiently above breakeven levels to indicate financial health.

7.4.5 Return on Investment (ROI)

In business, ROI measures net profit earned relative to total funds invested. Hotels apply ROI to weigh investment decisions and profitability. ROI is calculated by dividing net operating income by total property investment or development costs.

Potential limitations with using ROI in hotels include variations in capital costs and ownership structures. However, ROI remains insightful for benchmarking against industry averages and evaluating investment outcomes over time. ROI must be assessed against investor hurdle rates and risk profiles.

7.4.6 Capitalization Rate (Cap Rate)

The capitalization rate compares a property’s net operating income to its total market value. Calculated by dividing NOI (Net Operating Income) by property value, cap rates express expected yields from hotel investments as a percentage.

Cap rates help determine asset valuation and assess investment appeal. Lower cap rates indicate higher property values, assuming stable income. Cap rates influence investor decisions, as returns must sufficiently exceed alternative investment yields. Market cap rate averages provide comparison standards.

7.4.7 Internal Rate of Return (IRR)

Internal Rate of Return (IRR) represents the annualized rate of return projected for an investment over time based on estimated cash inflows and outflows. Essentially, IRR identifies the breakeven discount rate at which net present value equals zero.

Hotels rely on IRR to evaluate capital projects and acquisitions. Comparing deals using IRR accounts for differences in size, timing and duration of cash flows. IRR must surpass the cost of capital to signify a sound investment.It assists investors in ranking multiple development opportunities.

7.4.8 Net Operating Income (NOI)

A property’s Net Operating Income (NOI) equals all revenue from operations minus operating expenses. NOI excludes taxes, depreciation, debt service costs, rent, and any non-operating sources of income.

NOI indicates the earnings potential of a hotel asset before accounting for capital structure and other fixed costs. Tracking NOI over time aids financial planning and identifying issues. NOI also enables comparisons across properties. Sufficient NOI must be generated to service debts and provide return on investment.

7.4.9 Average Length of Stay (ALOS)

ALOS refers to the average number of nights hotel guests stay during a given period. It is calculated by dividing total occupied room nights by total guests served.

ALOS helps hotels forecast demand and optimize revenue. Extended stays may indicate opportunities for packages and loyalty programs. Shorter stays could signal a need for quicker turnover. Strategically managing length of stay through pricing, incentives and promotions allows hotels to influence guest behavior, costs and revenues.

7.4.10 Your Bonus Structure

Hotel managers are responsible for the overall performance and profitability of their properties. Bonus structures based on key performance indicators (KPIs) are often implemented to incentivize successes and align a manager’s goals with the success of the hotel. These KPIs, or hotel metrics, provide a quantifiable way to measure and evaluate various aspects of a hotel’s operations. This section explores common hotel metrics that make up a hotel manager’s bonus structure. There is a focus placed on elements that make up common hotel management bonus structures:

• Performance-based bonuses, especially in contrast to a property’s comp set
• Flowthrough
• Customer service scores
• Employee Engagement and Retention

7.4.10.1 Performance-Based Bonuses

Many hotel managers receive bonuses based on the overall financial performance of the property. This can be tied to metrics such as revenue growth, profitability, and cost control. For example, if a hotel exceeds revenue targets or achieves a high flowthrough percentage, the manager may be eligible for a performance-based bonus. The common metrics a manager may be bonused on includes RevPAR, ADR, and Occupancy targets.

RevPAR (Revenue per Available Room), ADR (Average Daily Rate), and occupancy targets are widely used metrics in the hospitality industry. Managers may be bonused based on their ability to achieve or exceed these targets, as they directly impact the hotel’s financial performance. Higher occupancies, higher average daily rates, and RevPAR often indicate effective management and leadership strategies. The most common performance-based bonuses are set against comp sets in lieu of being stand-alone though, to ensure the bonus is based on a manager’s successes rather than market conditions.

Competitive sets, also known as comp sets, play a significant role in assessing a hotel’s performance relative to its competitors. A comp set consists of a group of hotels in the same market or geographical area with similar characteristics and target markets. Benchmarking against comp set performance allows hotel managers to evaluate their property’s market share, pricing strategies, and revenue generation capabilities.

Hotel managers are responsible for analyzing comp set data to identify opportunities for growth and improvement. They must closely monitor key performance metrics such as average daily rate (ADR), occupancy rate, revenue per available room (RevPAR), and market share. By outperforming their comp set in these areas, managers demonstrate their ability to attract and retain customers, optimize pricing, and increase market share, which can contribute to their bonus eligibility.

7.4.10.2 Flowthrough

Flowthrough is a crucial metric that measures the efficiency of a hotel’s revenue management strategies. It evaluates the extent to which revenue growth translates into profit growth. The flowthrough percentage is calculated by dividing the change in gross operating profit (GOP) by the change in total revenue. A higher flowthrough percentage indicates effective cost control measures and the ability to convert revenue into profit.

Managing costs and maintaining operational efficiency are crucial for a hotel’s profitability. Managers may be bonused based on their ability to control expenses, implement cost-saving measures, and improve operational efficiency. Achieving favorable flowthrough percentages or managing expenses within budgeted targets can be rewarded with bonuses.

Hotel managers must demonstrate a strong understanding of flowthrough to optimize the hotel’s financial performance. By closely monitoring expenses, identifying areas of cost savings, and implementing revenue management techniques, managers can improve flowthrough and maximize profitability. Achieving or exceeding flowthrough targets is often rewarded in bonus structures.

7.4.10.3 Customer Service Scores

Customer service scores are vital metrics that reflect a hotel’s ability to deliver exceptional guest experiences. These scores are typically based on guest feedback obtained through guest satisfaction surveys, online reviews, and other feedback channels. The metrics may include overall satisfaction, staff friendliness, cleanliness, quality of service, and responsiveness.

Hotel managers are responsible for creating a culture of exceptional customer service throughout the property. They must ensure that staff members are properly trained, motivated, and empowered to provide outstanding service to guests. By consistently achieving high customer service scores, managers demonstrate their ability to deliver a positive guest experience, build guest loyalty, and drive repeat business. These scores often play a significant role in determining bonus eligibility.

7.4.10.4 Employee Engagement and Retention

The hotel industry is known for being labor intensive. Employee turnover has been identified as costing $3,000-$8,500 for front line team members in the U.S. (Tracey & Hinkin, 2006), with the wide variation in cost attributable to location (e.g., Seattle wages are higher than those in central Washington) and position specifics (e.g., training a bellman is less cost intensive than training a front desk agent). With employee turnover, engagement, and retention being so integral to the bottom line it makes sense that managers would be bonused on these things.

Employee engagement and retention are key factors in delivering exceptional service and maintaining a motivated workforce. Hotel managers may be bonused based on their ability to improve employee satisfaction, reduce turnover rates, and foster a positive work environment. Engaged employees are more likely to provide excellent service, resulting in higher guest satisfaction and improved financial performance.

7.5 Careers

7.5.1 Hotel Organizational Structures

A hotel’s organizational chart provides a visual representation of the property’s staffing hierarchy and division of operational responsibilities. Examining typical hotel organizational structures grants hotel professionals foundational knowledge of the complex interplay of departments, managers, and line-level staff required to deliver exceptional guest experiences.

In a full-service hotel’s organizational chart, the general manager sits at the top, overseeing all operations and departments. Directly below and reporting to the General Manager (GM) are heads of major divisions like rooms, food and beverage, sales/marketing, human resources, finance/accounting, security, maintenance, and housekeeping. These department heads manage teams of supervisors, who in turn manage frontline staff executing day-to-day activities.

Within the rooms division, the front office is headed by the front office manager, who supervises front desk agents, concierges, bell staff, and valet staff. The executive housekeeper oversees housekeeping and laundry. Food and beverage consists of multiple outlets like restaurants, banquet/catering, and room service headed by outlet managers or executive chef. Sales and marketing has sub-teams for corporate sales, events, and public relations.

Leadership hierarchies allow effective delegation, accountability, and decision-making authority across the hotel. However, communication, teamwork and customer-centric service must bridge any silos between departments and levels. Adaptable matrix management brings cross-functional collaboration for projects like new hotel openings.

Staffing models vary by hotel size, amenities, location, and service level. But the core divisions remain consistent. Analyzing org charts grants valuable perspective on the intricately coordinated efforts required to deliver exceptional guest experiences and financial returns.

7.5.2 Building Your Career Pathway

The multifaceted operations of a hotel offer a wide array of career pathways for young professionals pursuing hospitality management. By understanding the scope of departmental roles and advancement opportunities, we can chart rewarding long-term career trajectories within hotel organizations.

Front office and guest services provide critical first impressions and customer care. Positions like front desk agent, concierge, and bell/valet attendant offer entry points to learn guest relations skills. With experience, promotions to supervisor, duty manager, and eventually front office manager become possible.

Within housekeeping, room attendants can advance to floor supervisors then executive housekeeper. Housekeeping departments traditionally have more than 50% of a hotel’s team members (Bureau of Labor Statistics, 2023). This is changing as many properties no longer offer daily housekeeping for their guests. Yet, the importance of housekeeping remains paramount to a property’s operations and career positions are plentiful.

The food and beverage industry encompasses a wide range of roles, starting from positions like servers and bartenders and progressing to more advanced roles like outlet managers. For those interested in event coordination, roles such as banquet and events coordinators can lead to exciting opportunities as catering sales directors. Similarly, culinary careers offer a clear trajectory, with individuals starting as prep cooks and advancing their way up to prestigious positions like chef de cuisine. The industry provides ample room for growth and specialization, catering to a diverse array of career aspirations.

Finance and accounting provide essential analytical support. Entry-level roles in accounts payable , accounts payable , payroll, and night audit prepare employees for controller and finance director positions. The finance and accounting department offers critical support through financial analysis, reporting, budgeting, and asset management. Entry points include accounts payable, accounts receivable, payroll, purchasing, and night audit/reconciliation roles. The analytical, detail-oriented nature of finance functions equips professionals with skills transferable across industries. But the hospitality sector provides opportunities to not only manage finances, but enable remarkable guest experiences.

Sales and marketing offers opportunities in conference services coordination, account management, marketing, and communications. The sales and marketing department in a hotel is typically segmented to focus on key markets. For example, the director of sales may oversee sales managers focused on corporate accounts, SMERF (social, military, educational, religious, and fraternal) , government, associations, and other business/group accounts. Leisure sales managers concentrate on promoting to tour operators, Online Travel Agents (OTAs), and consumers directly. Marketing managers handle areas like branding, advertising, digital marketing, social media, promotions, partnerships, and public relations. Segmenting sales efforts and marketing strategies based on primary target markets allows hotels to tailor outreach and maximize results.

Passion for hospitality and leadership potential can propel careers to the general manager level and beyond. Regional director roles overseeing multiple properties provide advancement opportunities. Some leverage operational expertise to transition into hotel development, franchising, and consultancy.

By gaining well-rounded experience through hotel internships, mentorships, and on-the-job training, anyone reading this textbook can build the capabilities needed at higher levels of management. Willingness to relocate also aids advancement prospects. With dedication and continuous learning, the possibilities are unlimited in hotel management.

7.6 Camping and RVs as Accommodation

Camping is an age-old activity rooted in humanity’s instinctual connection to nature. The camping industry has evolved into a diverse and vibrant realm of outdoor accommodation. Ranging from traditional tents to modern recreational vehicles (RVs), camping offers a unique way for individuals and families to immerse themselves in the natural world while forging lasting memories. Camping and RVs are a part of accommodations albeit not hotels. This section of the accommodations chapter delves into the multifaceted world of camping and RVs as distinct forms of accommodation, exploring their history, diverse types, and the cultural appeal they hold in the realm of outdoor adventure.

Camping, at its core, involves setting up temporary shelter amidst the wilderness, creating a home away from home. This can take various forms, each with its own level of comfort and amenities. From the simplicity of tent camping, where individuals pitch canvas shelters and sleep under the stars, to the more sophisticated world of recreational vehicles (RV), where the comforts of home are brought along on the journey, camping caters to a spectrum of preferences. RVs come in various sizes and configurations, providing living spaces equipped with sleeping quarters, kitchens, bathrooms, and even entertainment systems. These portable homes on wheels allow travelers to explore vast landscapes without compromising on convenience.

Camping and recreational vehicle (RV) travel have become deeply ingrained in the fabric of the hospitality and tourism industry, offering unique accommodation experiences that allow travelers to connect with nature. This chapter provides an in-depth exploration of camping and RVing, examining the evolution, current state, and future directions of these outdoor hospitality sectors. We will analyze key trends, customer demographics, industry career pathways, and best practices to gain a holistic understanding of how camping and RVing enrich the accommodations landscape. Statistics and facts are incorporated throughout the chapter to underscore the scope and impact of camping and RVing. Whether under the stars or on the road, these distinctive forms of lodging interweave adventure, comfort, and environmental stewardship.

7.6.1 Unraveling the History of Camping and RVs

The roots of camping trace back to ancient times when humans sought refuge in natural surroundings for survival. However, it wasn’t until the late 19th century that camping began to transition from a means of necessity to a recreational pursuit. The 19th century also brought recreational camping into the mainstream as cities became crowded during the Industrial Revolution. The emergence of camping as a leisure activity can be attributed to the works of early outdoor enthusiasts like Thomas Hiram Holding in the United Kingdom and Horace Kephart in the U.S. Writers like Henry David Thoreau extolled the virtues of escaping into nature in his seminal work Walden (1854), further popularizing camping. Their writings and advocacy laid the foundation for the modern camping movement, inspiring individuals to venture into the wild for enjoyment rather than mere survival.

The creation of sleeping bags, portable stoves, cooler technology and ultralight backpacking gear over the past century has enabled campers to enjoy extended wilderness excursions in relative comfort. Today, innovative four-season tents allow cold weather camping while lightweight car camping gear makes traveling easy. Campgrounds offer sites with electric and water hookups, Wi-Fi and conveniences to blend wilderness respite with creature comforts.

This is a selection of important time periods in the evolution of camping (Adams, n.d.):

• 1820s-1830s: First American camping clubs emerge. Campers carry heavy canvas tents via wagons to campsites.
• 1860s: Lightweight rubberized fabrics allow more portable camping gear.
• 1890s: Ranches and farms open land to city tourists seeking a rural camping experience.
• 1930s: The recreational vehicle industry forms as Americans embrace road trips. Campers tow trailers with gas stoves, ice boxes and beds.
• 1950s: Aluminum tents and trailers gain popularity over heavier canvas and steel. Lighter popup tent trailers emerge.
• 1960s: Fibers like nylon and Gore-Tex allow weather-resistant, highly packable tents and sleeping bags.
• 1980s: Dome tents with flexible poles begin replacing A-frame tents. Mummy-style sleeping bags for cold weather introduced.
• 2000s: Blogs, online forums and review sites help campers research gear and destinations.

Camping has forged a unique culture centered around self-sufficiency, exploration, and embracing the elements. The appeal of camping lies in its ability to offer respite from the routines of daily life, allowing individuals to disconnect from technology and immerse themselves in the natural world. Campers relish in the sense of adventure that comes with setting up camp, building fires, and sharing stories under the night sky. Whether it’s the thrill of waking up to a dew-covered tent or the serenity of gazing at stars unobstructed by city lights, camping encapsulates an essence of simplicity that resonates with people seeking a break from urban life.

As camping and RVs continue to evolve, they remain emblematic of the human desire to connect with nature and seek refuge from the modern world. This chapter explores the intricacies of camping and RVs, from the different types of accommodations they offer to the historical journey that has shaped their present-day appeal. Whether it’s a family roasting marshmallows around a campfire or a solo traveler embarking on a cross-country RV adventure, camping and RVs present an unparalleled opportunity to create cherished memories while immersing oneself in the great outdoors.

7.6.2 Understanding the Camping and RVing Market Segment

The world of camping and recreational vehicle (RV) travel is a vibrant tapestry that draws in individuals of all walks of life, bound together by a shared love for the great outdoors. Uniting diverse demographics and psychographics , this market segment offers a spectrum of experiences, from simple tent setups to luxurious RV adventures. Delving into the nuances of this multifaceted community provides insights into the motivations, preferences, and trends that drive the camping and RVing phenomenon.

Camping’s economic ripples touch rural communities nationwide. Campers spend an average of $300-$800 per camping trip when factoring in travel, gear, food and recreation expenses (Cairn Consulting Group, 2023). This direct spending in local communities helps create jobs and support small businesses. Campers spend over $20 billion annually, with each dollar generating an additional $0.90 in economic output (Statista Research Department, 2024). Taxes levied on campground accommodations and visitor expenditures provide further economic benefits.