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3.5: Conclusion

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    9324
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    The accommodation sector, and the hotel sector in particular, encompasses multiple business models and employs hundreds of thousands of Canadians. A smaller, but important growing segment in BC is that of camping and RV accommodators.

    As broader societal trends continue and morph, they will continue to impact the accommodations marketplace and consumer. Owners and operators must stay abreast of these trends, continually altering their business models and services to remain relevant and competitive.

    Now that we have a better sense of the accommodation sector, let’s visit the other half of the hospitality industry: food and beverage services. Chapter 4 explores this in more detail.

    Key Terms

    • Average daily rate (ADR): average guest room income per occupied room in a given time period
    • BC Hospitality Foundation (BCHF): created to help support hospitality professionals in their time of need; now also a provider of scholarships for students in hospitality management and culinary programs
    • BC Hotel Association (BCHA): the trade association for BC’s hotel industry, which hosts an annual industry trade show and seminar series, and publishes InnFocus magazine for professionals
    • BC Lodging and Campgrounds Association (BCLCA): represents the interests of independently owned campgrounds and lodges in BC
    • Camping and RVing British Columbia Coalition (CRVBCC): represents campground managers and brings together additional stakeholders including the Recreation Vehicle Dealers Association of BC and the Freshwater Fisheries Society
    • Competitive set: a marketing term used to identify a group of hotels that include all competitors that a hotel’s guests are likely to consider as an alternative (minimum of three)
    • Costs per occupied room (CPOR): all the costs associated with making a room ready for a guest (linens, cleaning costs, guest amenities)
    • Fractional ownership: a financing model that developers use to finance hotel builds by selling units in one-eighth to one-quarter shares
    • Franchise: enables individuals or investment companies to build or purchase a hotel and then buy or lease a brand name under which to operate; also can include reservation systems and marketing tools
    • Franchisee: an individual or company buying or leasing a franchise
    • Franchisor: a company that sells franchises
    • Hotel Association of Canada (HAC): the national trade organization advocating on behalf of over 8,500 hotels
    • Hotel type: a classification determined primarily by the size and location of the building structure, and then by the function, target markets, service level, other amenities, and industry standards
    • Motel: a term popular in the last century, combining the words “motor hotel”; typically designed to provide ample parking and easy access to rooms from the parking lot
    • Occupancy: the percentage of all guest rooms in the hotel that are occupied at a given time
    • Revenue per available room (RevPAR): a calculation that combines both occupancy and ADR in one metric
    • Sharing economy: an internet-based economic system in which consumers share their resources, typically with people they don’t know, and typically in exchange for money
    • SMERF: an acronym for the social, military, educational, religious, and fraternal segment of the group travel market

    Exercises

    1. On a piece of paper, list as many types of accommodation classifications (e.g., by size) as you can think of. Name at least five. Provide examples of each.
    2. When researching a franchisor, the cost of the franchise must be carefully considered. What other factors would you consider to determine the value of a franchise fee?
    3. How should lower-end hotels and hotels that do not cater to business travellers respond to increased competition from rentals enabled by firms like Airbnb?
    4. A hotel earns $3,000 on 112 rooms. What is its ADR?
    5. That same hotel has an occupancy of 75%. What is its RevPAR?
    6. How many independent campgrounds are there across Canada?
    7. How many vehicle-accessible campsites are there in BC?
    8. Airbnb enables hosts to rate their guests after a stay. Consider some other types of accommodation and list the pros and cons of rating guests.
    9. Draw an organizational chart for a 60-room boutique hotel, listing all the staff required to run the operation. Put the most influential people (e.g., the general manager) at the top and work your way down. How would you structure this differently from a larger full-service hotel? What would you keep the same?
    10. Read Condé Nast Best Hotels and Resorts in the US and Canada for 2020. Now find two other “best of” lists for BC, Canada, or global accommodations. What do the winners have in common? List at least three things. Now try to find at least two differences.

    Case Study: Hotel for Dogs – Philanthropy and Media Coverage

    In 2014, the media was taken by storm with a story about a hotel in North Carolina that combined philanthropy with their business model. The property expanded on the trend of allowing dogs in hotels by fostering rescues from a nearby shelter and allowing guests to adopt them. Guests appreciated the warm interactions with the animals and several dogs were adopted as a result (Manning, 2014).Not only did the property provide a valuable service and enhance the guest experience, but the story was repeated across multiple media outlets, creating publicity for the hotel.

    This is an example of a current trend: allowing pets in hotels. Now choose from one of the following trends, and research it to answer the questions that follow:

    • Carbon offset programs
    • Personalization
    • Reputation management
    • Digital concierge
    • Smart hotels
    • Healthy and organic foods
    • Online experiences
    • Frictionless touch points
    • Sharing economy
    • Green certified
    • Augmented reality
    1. Why do you think this trend has emerged? What market is it helping to serve?
    2. Find an example of a hotel that has responded to your chosen trend and explain how the trend has informed or changed the hotel’s business strategy or practice.
    3. Are there any trends that are not listed above that you think should be added? Try to name at least two. Why are these important accommodation trends today?

    References

    Accor. (2020). Brand portfolio, economy brands. Retrieved from www.accor.com/en/brands/brand-portfolio.html

    Airbnb. (2020). Hosting in 3 steps. Retrieved from www.airbnb.ca/host/homes

    Berelowitz, S. (2018, February 6). Important mobile booking stats for hotels in 2018. Pegasus. Retrieved from www.pegs.com/blog/important-mobile-booking-stats-for-hotels-in-2018/

    Boutique Hotel Association. (n.d.) Terminology and definitions for boutique and lifestyle hotels and properties. Retrieved from www.blla.org/lifestyle-hotels.htm

    Brey, E. (2009). Resort definitions and classifications: A summary report to research participants. [PDF] University of Memphis: Center for Resort and Hospitality Business. Retrieved from caribbeanhotelassociation.com...UofMemphis.pdf

    Camping and RV in BC. (2020). Camping and RVing in BC go where your spirit takes you! Retrieved from https://www.campingrvbc.com/

    Canada History. (2013). The railroad. Retrieved from www.canadahistory.com/sections/eras/nation%20building/Railroad.html

    CBC. (2018, February 7). Airbnb to collect provincial, municipal taxes on short-term rentals in B.C. Retrieved from www.cbc.ca/news/canada/british-columbia/airbnb-vancouver-bc-1.4524284

    Coast Hotels and Resorts. (2020) Management and franchises. Retrieved from www.coasthotels.com/management-franchise/

    Crandell, C., Dickinson, K., & Kanter, G. I. (2004). Negotiating the hotel management contract. In Hotel Asset Management: Principles & Practices. East Lansing, MI: University of Denver and American Hotel & Lodging Educational Institute.

    CRVBCC. (2014). About us: The Camping and RVing British Columbia Coalition. Retrieved from www.campingrvbc.com/about/

    Devehish, S. (2018). “Economic Impact of Canadian RV and Camping Industry”.crva.ca. Retrieved from www.crva.ca/economic-impact-canadian-rv-camping-industry/

    Diffen. (2015). Hotel vs motel. Retrieved from www.diffen.com/difference/Hotel_vs_Motel

    The Economist, (2013). Silverstein, B. The rise of the sharing economy. Retrieved from www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy

    Fairmont Hotels and Resorts. (2020). Chief engineer job description. Retrieved from www.linkedin.com/company/fairmont-hotels-and-resorts?trk=job_view_topcard_company_name

    Fast Company. (2012). Airbnb – Most innovative companies 2012. Retrieved from www.fastcompany.com/3017358/most-innovative-companies-2012/19airbnb

    go2HR. (2020a). Executive housekeeper profile. Retrieved from www.go2hr.ca/career-profiles/executive-housekeeper

    go2HR. (2020b). Director of sales and marketing in hotel profile. Retrieved from wwwgo2hr.ca/career-profiles/director-sales-and-marketing-hotel

    Hotel Association of Canada. (2019). Membership & Advocacy. Retrieved from www.hotelassociation.ca

    Attala, J. (2019, March 25). 10 ways smart technology is reshaping the hotel industry. Hotel Management. Retrieved from www.hotelmanagement.net/tech/10-ways-smart-technology-reshaping-hotel-industry

    Hotelier. (2018, December 17). Trends for 2019. Retrieved from www.hoteliermagazine.com/trends-for-2019/

    Kostuch Media. (2018, July 9). The Top 50 Report: The Canadian Hotel Industry Continues to Thrive. Retrieved from Hotelier Magazine: https://www.hoteliermagazine.com/the...ues-to-thrive/

    Inversini, A., Masiero, L. (2014). Selling rooms online: the use of social media and online travel agents. International Journal of Contemporary Hospitality Management,26 (2), 272-292

    Meiszner, P. (2014, June 27.) Fairmont Empress hotel in Victoria purchased by Vancouver developer.Global News. Retrieved from http://globalnews.ca/news/1421407/fa...ver-developer/

    Melloy, J. (2015, February 2). Airbnb guests triple hurting Priceline, HomeAway.CNBC. Retrieved from www.cnbc.com/id/102389442

    Migdal, N. (n.d.) Franchise agreements vs. management agreements: Which one do I choose?Hotel Business Review. Retrieved from hotelexecutive.com/business_review/2101/test-franchise-agreements-vs-management-agreements-which-one-do-i-choose

    Rushmore, S. (2005). What does a hotel franchise cost?Canadian Lodging Outlook. Retrieved from www.hotel-online.com/News/PR2005_4th/Oct05_FranchiseCost.html

    SilverBirch Hotels. (2020). About us. Retrieved from www.silverbirchhotels.com/about/

    Tourism HR Canada. (2018). Tourism Shortages: Jobs to Fill. Retrieved from http://tourismhr.ca/labour-market-in...-jobs-to-fill/

    Travel Click. (n.d.). Find your market mix – OTAs vs. direct. Retrieved from https://www.travelclick.com/insight/...ota-vs-direct/

    Wedgewood Hotel & Spa. (2020). Wedgewood Hotel & Spa, Meet the Team. Retrieved from www.wedgewoodhotel.com

    Western Investor. (2012). Investors burnt in hotel condos, fractionals. Retrieved from
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    Zervas, G., Preserpio, D., & Byers, J.W., (2015). The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry. Boston U. School of Management Research Paper No. 2013-16. Available at SSRN: ssrn.com/abstract=2366898 or dx.doi.org/10.2139/ssrn.2366898


    This page titled 3.5: Conclusion is shared under a CC BY license and was authored, remixed, and/or curated by Morgan Westcott & Wendy Anderson et al. (BC Campus) .

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