Chapter 01 Revised 9-14.ppt

Chapter 01 Revised 9-14.ppt - The Traditional Hotel...

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The Traditional Hotel Industry Chapter One
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Objectives of Chapter 1 Understand the historical evolution of the hotel industry Appreciate the size and scope of the industry and its products Be able to understand and compute: Occupancy Average Daily Room Rate (ADR) Revenue per Available Room (REVPAR) Double Occupancy Understand Hotel Classification Systems Start to understand industry terms/jargon
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History of Hotel Keeping Hotels have been around for centuries Worldwide – Rome, China, Middle-East Europe Stagecoach Inns of USA Hotels becoming larger in recent years Simply not possible 75 years ago Hotels always served meals in the past Travelers had no other options then Now many hotels have limited/no food service Other options available to travelers now
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History of Hotel Keeping Different Eras and Hotel Keeping Hunter/gatherer Era (Pre-historic) No need for hotels as travel was limited Agricultural Era (Early civilization onwards) Very limited travel by traders and officials Early beginnings of hotel industry with roadside inns Problems of safety and security Industrial Era (19 th century onwards) Increasing national and international travel Development of bigger and better hotels start Service Era (Today) Travel for both business and pleasure is routine Development of sophisticated hotel industry worldwide to cater to travelers
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How Hotels Measure Performance Occupancy Rate The relationship between demand (the number of rooms actually sold) and supply (the number of rooms available for sale) Occupancy Rate = # Rooms Sold / # Rooms Available
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How Hotels Measure Performance Average Daily Rate (ADR) The average dollar amount received for each room sold Average Daily Rate = Room sales / Number of rooms sold Occupancy and ADR alone can be misleading.
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