Chapter 5: Understanding the Lodging Industry
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Case Study: “Where to sleep?”
Imagine you’re planning a weekend getaway to a nearby city with two of your closest friends. You start looking online to find a place to stay. The options are overwhelming: a boutique downtown hotel, a cozy bed and breakfast, a budget motel off the freeway, or an Airbnb rental in a quiet neighborhood.
Each choice varies in its location and price and also offers a unique set of amenities. One hotel features a swim-up bar and another provides a free hot breakfast. Some have 24/7 front desk staff, while others send you a code to unlock the door.
In deciding which option best suits your travel plans, you begin to consider:
- What makes one place more appealing than another?
- Why do some hotels charge more, and what are you paying for?
- Who works behind the scenes to make sure your stay is clean, safe, and comfortable?
Now, imagine you’re not the guest. Rather, you’re the owner or manager of one of these properties. What decisions would you need to make every day? How do you attract guests, maintain the property, manage staff, and stay competitive?
This chapter introduces a selection of lodging types and the variables that differentiate them. It also explores their day-to-day operations, the key roles and departments involved, and the key trends shaping the future of the lodging industry. An essential part of hospitality, lodging plays a vital role in tourism satisfaction, providing far more than just a place to sleep.
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Objectives
Reading and reviewing this chapter will enable an attentive learner to accomplish the following tasks:
- Explain the role of lodging in tourism and economic development
- Classify types of lodging establishments based on amenities and features
- Identify key departments in the organizational structure of a property
- Compute standard key performance indicators (KPIs) Describe the role of pricing strategies and distribution channels’ role in revenue management
- Examine the use of technology for property management and guest experience
- Evaluate the role of exceptional service in guest recovery and retention
- Outline career and educational pathways in the lodging sector
Key Terms
- American Hotel and Lodging Association (AHLA)
- Average Daily Rate (ADR)
- Back-of-house
- Concierge
- Front-of-house
- Green Lodging
- Gross Operating Profit per Available Room (GOPPAR)
- Guest Experience
- IoT (The Internet of Things)
- Key Performance Indicators (KPIs)
- LEAN Method
- Loyalty Programs
- Occupancy Rate
- Property Management System (PMS)
- Revenue Management
- Revenue per Available Room (RevPAR)
- Sales Incentive Model
- Service Recovery Paradox
Attributions
- Figure 5.1: Hotel Alpha-Palmiers Reception, by fhotels, is licensed under CC BY-NC 2.0.
