Chapter 2 Classification of Hotels

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1 Chapter 2 Classification of Hotels Chapter 2 Classification of Hotels 1

2 Learning Objective Type of Hotels Heritage Hotels and Palaces Types of Supplementary accommodation Chapter 2 Classification of Hotels 2

3 Introduction, background and Eligibility for classification Hotel is an important part of hospitality industry. It has now attained a much higher status in society and demands high standards of work ethics and efficiency from its employees. To ensure a certain level of standardisation in products and services hotels globally are classified on various parameters which can include the location, facilities, affiliation inter alia. Chapter 2 Classification of Hotels 3

4 Introduction, background and Eligibility for classification The Star classification is provided by Hotel and Restaurant Approval and Classification Committee (HRACC), Department of Tourism in India. The classification can be applied by existing and well as new hotels in a prescribed time frame. Chapter 2 Classification of Hotels 4

5 Classification on the basis of Target Markets Business Hotels 1. caters primarily to business travellers 2. Usually located in the downtown or business districts 3. Guest amenities at business hotels include complimentary newspapers, morning coffee, free local telephone calls, break fast etc. 4. Access to business centre, Wi-Fi and fax machines are provided to guests Chapter 2 Classification of Hotels 5

6 Classification on the basis of Target Markets Airport Hotels 1. Typically target business clientele, airline passengers with overnight travel layovers or cancelled flights and airline personnel 2. May offer free transport between hotel and airport 3. Provide meeting facilities for guests who travel to a meeting by air and wish to minimize ground travel 4. Instead of charging guests by day basis, the guests can also pay for their room by hourly basis Chapter 2 Classification of Hotels 6

7 Classification on the basis of Target Markets Suite Hotels 1. Latest trend and the fastest growing segments in the hotel industry 2. Guestroom with a living room and separate bed room 3. Generally have fewer and more limited public areas 4. Guests categories are professionals, accountants, lawyers who look for work as well as entertain in an area besides the bedroom Chapter 2 Classification of Hotels 7

8 Classification on the basis of Target Markets Extended Stay Hotels 1. Similar to suite hotels but usually offers kitchen as a part of amenities 2. Relevant for travellers who want to stay for more than a week 3. Travellers who do not want to depend on service of the hotel 4. This hotels do not provide any F&B service or laundry service 5. Considered as Home away from home Chapter 2 Classification of Hotels 8

9 Classification on the basis of Target Markets Apartment Hotels 1. Provide long term / near permanent accommodation 2. Guest makes a lease agreement with the hotel for minimum of one month up to a year 3. Lease agreements are renewed on a yearly basis 4. Guest rooms include living room, bedroom, kitchen, balcony etc 5. Housekeeping, laundry, telephone, restaurant and lounge may be provided by some hotels Chapter 2 Classification of Hotels 9

10 Classification on the basis of Target Markets Resort Hotels 1. Usually located in the mountains, on an island 2. These hotels have recreational facilities, scenery, golf, tennis, sailing and other entertainment facilities 3. Provide enjoyable and memorable guest experiences that encourage guest to repeat the resort Chapter 2 Classification of Hotels 10

11 Classification on the basis of Target Markets Bed and Breakfast Hotels 1. Houses with rooms converted into overnight facilities 2. The size can be guest rooms 3. The owner of B&B stays on the premises and is responsible for serving breakfast to guest 4. On account of limited service the price for room is very less in comparison to full service hotel Chapter 2 Classification of Hotels 11

12 Classification on the basis of Target Markets Timeshare and Condominium Hotels 1. Guest who purchase the ownership of accommodations for a specific period 2. Owners may also have the unit rented out by the management company that operate the hotel 3. Units in condominium hotels only have one owner instead of multiple owners, each for a limited amount of time each year 4. An owners inform the management company if when he / she wants to occupy the unit Chapter 2 Classification of Hotels 12

13 Classification on the basis of Target Markets Casino Hotels 1. Hotels with gambling facilities 2. Food and beverage operations in casino is luxurious their functions is secondary to and supportive of casino operations 3. Casino hotels attract guest by promoting the gambling and other entertainments Chapter 2 Classification of Hotels 13

14 Classification on the basis of Target Markets Conference Centres 1. This hotels focus on meeting and conferences and overnight accommodation for meeting attendees 2. Provide high quality audiovisual equipments, business services, flexible seating arrangements 3. Hotels mostly located outside the metropolitan areas 4. Have facilities like golf, swimming pools, tennis courts, fitness centres, spas Chapter 2 Classification of Hotels 14

15 Classification on the basis of Target Markets Convention centres 1. Larges in size compared to conference centres 2. Likely t have more than 1500 rooms 3. Hotels are huge and have sufficient number of guest rooms to house all the attendees 4. Usually cater to convention market for state, regional, national and international association Chapter 2 Classification of Hotels 15

16 Classification on the basis of Levels of Service World class service Also called a luxury hotels Target top business executives, entertainment celebrities, high ranking political parties etc. Provide upscale restaurants and lounges, concierge services and also private dining facilities Chapter 2 Classification of Hotels 16

17 Classification on the basis of Levels of Service World class service Guest rooms are oversized, heated and plush bath towels, large soap bars, shampoo, shower caps and all amenities Housekeeping services are give two times a day including turn-down service Guests are provided personalised services Chapter 2 Classification of Hotels 17

18 Classification on the basis of Levels of Service Mid-range service Appeal to the largest segment of the travelling public Does not provide elaborate service and have an adequate staffing Also provide uniformed service, food and beverage room service Chapter 2 Classification of Hotels 18

19 Classification on the basis of Levels of Service Mid-range service Property may offer a speciality restaurant, coffee shop and lounge Typical guests are business people, individual travellers and families Rates are lower than luxury hotels as they provide fewer services, smaller rooms and a smaller range of facilities and recreational activities Chapter 2 Classification of Hotels 19

20 Classification on the basis of Levels of Service Economy / Limited Service 1. Hotels provide clean, comfortable, safe, inexpensive rooms and meet the basic need of guests 2. These hotels appeal primarily to budget minded travellers 3. The cliental may include families with children, travelling business people, back-pakers, vacationer s retirees Chapter 2 Classification of Hotels 20

21 Classification on the basis of Ownership and Affiliations Independent Hotels 1. Do not have identifiable ownership or management affiliation with other properties 2. Properties don t have any relationship to another hotel regarding policies, procedures marketing or financial obligations 3. Advantage of individual property is autonomy 4. An independent hotel however does not get the advantage of board advertising exposure or management insight Chapter 2 Classification of Hotels 21

22 Classification on the basis of Ownership and Affiliations Chain Hotels 1. Ownership usually imposes certain minimum standards, rules, policies and procedures to restrict affiliate activities 2. More centralise the organisation the stronger the control over the individual property 3. Some chains have string control over the architecture, management and standards of affiliate properties Chapter 2 Classification of Hotels 22

23 Classification on the basis of Ownership and Affiliations Time Share Also known as vacation ownership or holiday ownership Properties are in resort like areas like hills, beaches, forests Involves individuals who purchase the ownership of accommodation for a specific week or weeks Chapter 2 Classification of Hotels 23

24 Classification on the basis of Ownership and Affiliations Time Share Guest chooses a peak season, semi peak season or a lean season The owner can also rent out the unit through management The owner can also exchange their resort with any other resort either directly owned by the company or through contract signed with any other company / management by paying nominal fee Chapter 2 Classification of Hotels 24

25 Classification on the basis of Ownership and Affiliations Condominium Similar to time share Developed on a joint ownership basis Owner has full right of an unit he has purchases Chapter 2 Classification of Hotels 25

26 Classification on the basis of Ownership and Affiliations Condominium Owner can occupy or sell his unit independently but required to follow the rules and regulations laid by the management Management can help the owner renting out the property The management earns a major portion by renting out conference hall and from catering Chapter 2 Classification of Hotels 26

27 Classification on the basis of Ownership and Affiliations Management Contract Hotels may be owned by individual persons, partnerships or companies, however operated by Management Companies The contracts are generally on a long term basis Chapter 2 Classification of Hotels 27

28 Classification on the basis of Ownership and Affiliations Management Contract The management contract can be signed even before the construction starts After paying management fees, operating expenses owners keep the balance as profit Chapter 2 Classification of Hotels 28

29 Classification on the basis of Ownership and Affiliations Franchise 1. Owner operates as a member of the chain of hotels under the franchise agreement 2. Utilises brand, goodwill and with fee some services of marketing 3. Operating nature support from resources of a large organisation available 4. E.g. Holiday Inn, Choice International Chapter 2 Classification of Hotels 29

30 Classification on the basis of Ownership and Affiliations Referral Groups Consists of independent hotels which have grouped together for some common purpose Properties differ from each other however the quality of service is sufficiently consistent The member hotels recommend guest to other member hotels Referral groups also extend benefit of more extensive reservation and expanded advertising through pooled resources Chapter 2 Classification of Hotels 30

31 Classification on the basis of Location City Downtown / Commercial hotels Hotels are located in the heart of the city Hotels are more expensive than the suburban hotels Hotels are patronized by business men and high income tourists Centrally located and at a convenient distance from markets, airports Chapter 2 Classification of Hotels 31

32 Classification on the basis of Location Suburban Hotels Hotels are located in suburb of cities Moderately priced Mostly medium, large or small size Normally patronizes by low budget tourists Usually writers, poets low budget tourists prefer to stay at suburban hotels Chapter 2 Classification of Hotels 32

33 Classification on the basis of Location Rotels 1. Hotels that rotate on wheels are called Rotels 2. Also called motels on wheels 3. Example could be luxurious train, fully AC and well furnished with an attached restaurant and bar Chapter 2 Classification of Hotels 33

34 Classification on the basis of Location Motels 1. Motels is a contraction of motor hotel 2. It a lodging that caters primarily to guests arriving by automobiles 3. Motels are located in any setting, but are usually found in suburban or roadside areas 4. Motels can be two story or low rise building located near major highways 5. Motels may contain pool areas with shrubbery tree and children play ground Chapter 2 Classification of Hotels 34

35 Classification on the basis of Location Floatels 1. Hotel which floats on water is called floatels 2. House boats in Kashmir Dal lake could be an example 3. Luxurious suites consisting of drawing room, dining room, bed room etc 4. Guests are often offered cabins to stay and now a days luxury ships are becoming popular for travelling 5. Floaters have all facilities similar to five star hotels Chapter 2 Classification of Hotels 35

36 Classification on the basis of Location Boatels Luxury boats / yachts which ferry people from one place to another Heritage Hotels 1. Initiated by Government to boost tourisms 2. Consists of old buildings and palaces constructed before 1935 that converted into hotels Chapter 2 Classification of Hotels 36

37 Classification on the basis of Clientele Boutique Hotels 1. Very small and very expensive hotels 2. Mainly cater to the elite class 3. Hotel is small but it may have number of restaurants Chapter 2 Classification of Hotels 37

38 Classification on the basis of Clientele All Suit Hotels 1. A new addition to the hotel industry 2. These suites provide living room, bedroom and kitchenette Chapter 2 Classification of Hotels 38

39 Classification on the basis of Size or Number of Rooms 1. Small Hotels 25 rooms or less 2. Average Hotels 25 rooms to 90 rooms 3. Above average hotels 80 rooms to 250 rooms 4. Large hotels 250 rooms and above Chapter 2 Classification of Hotels 39

40 Summary Hotel industry is growing on account of growth in travel and tourism sector Understanding the classification of hotels provides the prospective guests a view about the facilities and services he/she can expect from the Hotel In addition to old one, new Hotels based on concept of self help has emerged with limited services at reasonable rentals Chapter 2 Classification of Hotels 40

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