The Lodging Industry

Understanding Lodging
The lodging
industry in the
United States
has always been
strongly
influenced by
changes in
transportation.

Mid-1600s

Stage coach routes established

Coaching inns became popular
resting places for travelers
Expected a bed and a meal for the
evening

1794-1828

1794 City Hotel in

New York City opens
The first building in
the US designed
specifically as a hotel.
1828 The Tremont
House, first grand
hotel, was built in
Boston.
First hotel to offer
private rooms with
locking doors.

The Railroad

Inns, taverns and foodservice facilities

located near railway stations began to
grow.
Famous resorts because of the railway
include Hotel del Coronado near San Diego
and the Greenbrair Resort in West Virginia.
Yellowstone was also a railway resort.

Conrad Hilton

A banker in New Mexico purchased

his first hotel around 1900. It was in
Cisco Texas.
This began his chain of hotels.
Other hotels around this time: Ritz
Carlton in Boston and the Plaza in
New York City.

1950s

Increased availability and popularity of the

automobile and a new interstate freeway
system made cross country vacations a
popular option.
Motels sprang up along highways offering
travelers a place to bathe, sleep and eat.

The Airline Industry

1958 commercial airlines became popular.

Builders moved toward airports for hotels
and restaurants.

Lodging Operations Organization

Front of the house: employees who have

direct contact to the public
Back of the house: supporting operations,
behind the scenes
OR
Administrative Departments: Manage
business (accounting, human resources,
training, marketing, sales)
Service Departments: responsible for
serving guests directly

Administrative Departments

General Manager (GM)

Accounting and
Financial Management
(Controller)
Human Resources
Marketing and Sales

Service Departments

Front Office
Housekeeping
Engineering and
Facility
Maintenance
Security
Food and Beverage
(F & B)

Leisure Travelers

On vacation
Shopping, fine dinning, sightseeing,
sports events, relax
May provide activities for children,
on-site recreation or health facilities

Business Travelers

Looking for well lit work spaces,

telephones, modems, copiers, fax
machines.
Meeting facilities
24 hour service - valet parking,
secure lodging

Amenities

Restaurants
Parking Garages
Boutiques
Barber shops
Dry Cleaners
Florists
Swimming pools
Room service

Cable Television
Pay per view
Bathrobes
Gift shops
Kitchens
Computer modems
Spa
Recreational
activities

Types of Properties

Full Service
Luxury
Economy
Mid-priced
All-suite
Resorts
Bed and Breakfast

Terms to Know

Folio
CRS Central
Reservation System
Room Inventory
Block
Rooms Forecast
No-Shows
Overbook
Understays
Yield Management
Rack Rate

Hubbart Formula

Helps managers set rates

Operating expenses + Desired return on investment-Other Income

_______________________________________________________
Projected room sales
=
Room Rate