The hospitality industry - Hotels and other lodging services

25 important questions on The hospitality industry - Hotels and other lodging services

How have the modern hotels evolved from historical inns and guesthouses?

By developing elements that have become critical to the modern traveller, especially, privacy, luxury, the range of services offered and branding.

What does hotel classification schemes list?

The formal requirements that a hotel must comply with to deserve one or more stars.

How does a five star wants to differentiate themselves?

By service excellence. Nevertheless, this differentiation will not show in a higher star classification.
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What is a trend in star ratings?

The trend is that social ratings are gaining importance against traditional star classification.

What are the 2 largest travel segments?

1. Business travellers
2. Leisure travellers

What is the most important distinction (onderscheid) when we look at different types of services for travellers?

The reason to travel.

What are important criteria for a business traveler?

1. Location
2. Cleanliness
3. Comfort
4. Standardisation

Why are most business hotels in city centers?

A location close to the place of work is essential for business hotels which is why most business hotels are in city centers.

How long is a typical business stay?

The typical business stay is short, 2-3 days on average, and obviously concentrated on week days, with little activity in the summer season or in December.

What are the 3 socio-cultural trends that may have contributed to the changing guest experience in business hotels?

1. The divide between work and leisure in today's society is not as sharp as before. People check their work e-mail on Saturday night or at the beach, and expect a pleasant environment when they travel for work.
2. Globalisation has broadened business travel from something engaged in by a few professional 'road tigers' to larger groups of employees.
3. The growth of the leisure segment.

What are 2 examples of de-standardisation?

1. Business hotels are trying to create a 'home away from home'.
2. Rooms and spaces designed by 19 different architects.

How can the business segment and the leisure segment complement each other for a hotel business?

Leisure guests start coming when the business market slows down, and vice versa.

How can you maximise your occupancy in all seasons?

1. The concept must attract both groups
2. The different uses both groups make of a hotel should be compatible.

What is the all-inclusive concept mean?

Meals, drinks (except alcohol sometimes) and service are included in the room price.

What often determines pricing policies?

Communication between guests+their heightened price sensitivity.

What are no-frills accommodation?


It refers to a hotel that provides the bare essentials to customers in order to maintain low prices. A hotel in which a guest pays for a room with a bed, power, security and water. But all other services, including the use of towels, hair dryers, cleaning and more cost an additional fee.

How can you reduce staff?

Through multi functionality. Receptionist who double as bartenders. And automated check-ins and bathroom cleaning operations are cost-reducing innovations in these hotels. (mid-range and low-cost hotels)

What are budget hotels?


A hotel that provides minimum amenities and services for a lower price than a regular hotel in the area. This type of hotel provides clean rooms that are safe and meet the basic needs of a guest.

Whit who do budget hotels compete with?

Outdated guesthouses, traditional accommodation, on the one hand, staying with friends and family, on the other, including B&Bs and more recently 'couch surfing'.

What is peer-to-peer provision of accommodation?


Peer-to-peer accommodation happens when a person rents an apartment or a room they own to other person and this is typically enabled by digital platforms.

Give 3 reasons why franchising is successful?

1. Franchising is successful because it reduces risks and allows hotel companies to focus on their core business-managing hotels- rather than on real- estate investments. This becomes especially relevant if we have a high growth rate in hotel chains, often in new destinations.
2. In many markets around the the world, foreign companies are only allowed to operate under the condition that they cooperate with a national company.
3. In order to finance rapid growth, chains rely on local investors and business people, who are willing to invest their money in hotel properties.

What are benefits for the franchisor? (the chain)

1. Granting franchises reduces investment to a fraction of the cost of actually constructing or buying a property.
2. The franchisor gains the commitment and market knowledge of local entrepreneurs. 

Who is a franchisee?


A franchisee is a small business owner who operates a franchise. The franchisee has purchased the right to use a existing business's trademarks, associated brands, and other proprietary knowledge to market and sell the same brand, and uphold the same standards as the first business.

What are the benefits for a franchisee?

1. It reduces the risk of starting up a company.
2. Having access to central reservation systems
3. Sales operation help to sell rooms.

What is a REIT?

REIT is an investment company that specialises in real estate.

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