CH 3 Managing the Supply of Tourism Accommodation and Hospitality Services

Learning Outcomes:
to understand the scope and nature of tourist accommodation
to understand the range of operational issues affecting the accommodation sector
to understand the differences between serviced and non-serviced accommodation
to understand the importance of environmental issues in the management of hotels

Hospitality is very essence of tourism, involving the consumption of food, drink and
accommodation in an environment away from the normal home base.
Historically, hospitality was not necessarily a commercial endeavour, as you might host
someone with the expectation they might host you in a later period.
In modern-day society, hospitality has become a commercialized experience, where the
guest pays for the services/goods they consume via a bill.
* Hospitality has its historical roots in the ale houses of medieval times
*Ale houses were followed by the emergence of coaching inns on long-distance journeys and
public houses.
* In the mid-seventeenth century, the idea of a hotel developed in Paris and then in London.
Much of the hotels were developed at the major transport nodes such as railway termini in cities
and around commercial districts to cater for business travellers.
The typology of the hospitality services involves:
Hotels
Restaurants
Cafes and catering places
Night clubs and licensed clubs
Take-away food bars
Public houses
Canteens
Camping and caravanning sites
Holiday camps
Short-stay tourist accommodation
University and higher education accommodation provision
Catering services to educational establishments
Contract caterers
The Accommodation Sector
Accommodation has emerged as the local point for the hosting of guests and visitors through the
ages:
a guest pays a fee in return for a specified service, grade of accommodation and
associated services such as food and beverages.
it is one of the component of hospitality service
the development of accommodation has normally accompanied the growth of resorts,
areas of tourism activity and the demand to visit specific areas.

Over the years, the accommodation sector has been influenced from globalization:
The expansion of global corporations which operate throughout the world
The emergence and expansion of multinational corporations, with operations in countries
outside their main base or headquarters
The expansion of smaller multinationals, which operate in a limited number of countries
In the globalized world, a company can adopt transnational strategies by
Franchising its operation to other businesses in other countries
Licensing other companies or premises to operate using its brand, logo or trademark
Entering into non-investment management agreements
Acquiring overseas properties and interest
Pursuing merges to integrate business interests horizontally to operate in a number of
countries
Tourist accommodation is also characterized by a number of features:
Serviced accommodation
Hotels (business/leisure)
Resort hotels (leisure)
Educational hotels (business/leisure)
Airport hotels (business/leisure)
Motels (business/leisure)
Inns (business/leisure)
State-run hotels (business/leisure)
Bed and Breakfast (leisure)
Apartment hotels (business/leisure)
Non-service accommodation (Leisure)
Holiday villages/centres/camps
Caravans
Camp sites
Gites
Holiday cottages
Villas
Youth hotels
Backpacker hostels
Recreational vehicles
Other
Staying with friends and relatives (business/leisure)
House swaps

The accommodation sector, like the tourism industry, has undergone profound changes since
1945, as the sector has been characterized by constant innovation, evolution and diversification
of the product range. The pre-1945 pattern of tourist accommodation was dominated by serviced
accommodation, with a rapid growth in non-serviced types of accommodation after 1945.
Serviced accommodation sector:
1. Hotels
A hotel is not simply a premise with rooms, food and beverage services, but a business
oriented towards a constantly changing clientele.
Hotel managers need to understand how the operation of their establishment generates
revenue and the scale of costs.
It is important to understand other causes of low profitability: employee costs, the cost of
staff per room, restaurant costs and supply costs.
Taking into consideration seasonality is also important.
Another important consideration for hotel managers is the global demand and the
resources and marketing efforts needed to generate business.
To develop profitability, larger hotels have also adopted revenue or yield management
strategies.
Key trends affecting the sector include:
Consolidation
Internationalization of many hotel and accommodation chains
Greater product differentiation and the use of brands by larger operators
The growth of the non-serviced sector internationally with serviced apartments and selfcatering providing greater flexibility and individuality for tourists
New ownership models (i.e. franchising, joint ventures) as well as the rise of investment
portfolios in the self-catering market as it has grown in popularity
The growing importance of second homes in domestic and international settings as
greater affluence has created new opportunities for developers and investors
Increasing use of technology has reduced the time horizon for booking
The creation of new forms of demand
Increased competition between accommodation providers in different destinations and
within destinations
A perception that some sectors of the market for accommodation are being displaced (e.g.
B&B) by budget brands and changes in hostel accommodation
A more discerning consumer, seeking more for less from accommodation products in the
low to mid-range
A demand for luxury in accommodation experiences by some consumers, for which they
will pay a premium
A trend towards luxury travel has caused a rise in luxury accommodation as a significant
growth market.
Bakker (2005) segmented the market for luxury travel into:
Those wealthy travellers who choose luxury as a norm
Corporate travellers who are high ranked employees in companies
Lifestyle travellers who look for unique features in their trip

The one-off, once-in-a-lifetime traveller

2. The Boutique Hotel

Boutique hotels have been described as townhouses or small style-led properties that are
fashion-conscious and are modelled on the concept of a 1960s clothing boutique, based
on unique products.
The boutique hotel is a lifestyle product, with unique architectural or style features.
Many boutique hotels are responding to the market more flexibly than larger chain hotels,
through a process of continuous improvement.
A number of factors that are promoting a continued growth in boutique hotels include:
The internet, making it simpler for customers to access this new form of hotel
A number of large hotel chains are entering this market, such as the Hilton Group
and Marriott International
3. The Resort Hotels
The resort hotel complexes popularized by Club Med, where all tourist-services are included and
paid for at the time the holiday is purchased.
4. Motels (budget hotel)
The large car-based domestic tourism traffic of North America has led to the
development of cheaper and more flexible form of accommodation, known as motels.
Motels are normally located on principal route ways and roads
Motels have developed outside North America, particularly in Australia and New
Zealand as well.
Motels often provide catering facilities for travellers.
They are typically smaller than the average 50-room hotels, being run or managed as
family businesses.
5. Youth Hostels (budget hotel)
In the UK, youth hostels began in 1931.
They now, operate at 230 locations in England and Wales and there are 4500 globally.
There has also been investment in the form of backpacker hostels.
The budget hotel market is most highly developed in France where 2 companies Accor and
Group Envergue run two thirds of Europes branded budget hotel rooms.
Accor own the largest European brand (Ibis) which has 45% of its rooms located in 17
countries aside from France
Group Envergue eight budget brands are almost entirely based in France
The second largest budget hotel company in Europe is the UK (e.g. Comfort Inn, Travel Inn and
Travelodge brands), followed by Germany (e.g. Accors brands Ibis and Etap)
The Non-Serviced Accommodation Sector
In the inter-war period, holiday homes developed in many countries throughout the world
as the new middle classes developed leisure habits.

In the post-war period, initially caravan parks; then self-catering villages and more
recently holiday parks have been developed.
Finally, Mediterranean apartments in Spain and other destinations have been developed
for self-catering holidays, along with timeshare developments as a new form of limitedownership second-home.
Furthermore, it can be said that Gite Holidays are a time-honoured tradition for urban
French workers in Southern France.

Other Issues for the Accommodation Sector

Many accommodation providers have also had to respond to global concerns associated
with environmental issues.

Human resource issues have also assumed a growing significance for the hotel and
hospitality sector, which has a poor image as an employer.

Due to high levels of staff-guest interaction, staff performance is directly related to guest
satisfaction and repeat visits.

Future trends and developments will also be important in shaping the future form of the
accommodation sector.