Historical Development

Historical Development - Historical Development of the...

Info icon This preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
HA 105: Supplemental Slides Historical Development of the Lodging Industry The 70’s, 80’s, and 90’s 2001: The Quadruple Whammy
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Historical Development of the Industry
Image of page 2
Historical Development of the Lodging Industry When did the modern hotel industry as we know it have its beginnings? Following World War II moreAmericans owned cars recreational travel = a pastime roadsidehotels sprang up Who was Kemmonds Wilson?
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
How did Holiday Inn begin? Summer of 1951 Kemmons Wilson took a road trip with wife Dorothy and their fivekids Charged $2 extra per child making their $6 roomcost $16 Hotels left a lot to be desired in terms of cleanliness and facilities
Image of page 4
“I’mgoing to build a chain of hotels… and never chargefor children as long as they stay in thesameroomas their parents… and I’m going to built a brand namethat you can trust! …I’ll build 400 of thesethings across the country…” His wife laughed at him…
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Kemmons took notes during their trip, measuring rooms and noticing everything about the places they stayed. By thetime he got back to Memphis, he knew what hewanted. Hehired a draftsman to draw up theplans. It so happened that the draftsman watched an old Bing Crosby moviewhile hewas working, and hesketched the nameof it at thetop of his plans. Wilson saw it, liked it, and stuck with it. Holiday Inn was born.
Image of page 6
The Original Holiday Inn (Memphis 1952) The400 th Holiday Inn opened in 1962
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Ramada, Howard Johnson, Marriott, Hyatt, and Radisson wereformed in thelate1950’s and early 1960’s. These successful chains, along with earlier established brands such as Hilton and Sheraton, expanded with aggressivefranchising in the late60’s and early 70’s. Following in the footsteps of Holiday Inn…
Image of page 8
The early 1970’s: Boom Time What caused theboomin the expansion of thehotel industry in the 1970’s? Interstatehighway systemneared completion New suburban markets emerged Easy capital was available Aggressivefranchising by major brands expanded market presencewith littlecapital investment 1972 - demand for hotel rooms surged 18.9%
Image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
What did this surge in supply lead to? Market Segmentation Where onehotel company attempts to identify smaller, distinct segments within larger target markets and develops products and services aimed specifically at satisfying the needs of thesegroups of travelers. With theacquisition of Ritz (95/98) Marriott was represented at every price-point in themarket.
Image of page 10
The political and economic turmoil that developed in the mid 1970’s had a massive negative effect on the lodging industry. 1974 Oil Embargo Ensuing energy crisis and gas rationing Crippled thetravel industry Demand in 1975 fell below 1974 levels. 1976 - gas began to flow, travel picked up and hotel demand started to grow again.
Image of page 11

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
What was the other economic legacy of the late 1970’s?
Image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern