Task 2. Think and express your opinion

If you were Shelly, what would you do? Develop a plan for the Star.

Points to consider:

- the hotel’s age;

- its location;

- management contract;

- target markets;

- ownership;

- competition;

- management style;

- sales direction;

- advertising.

Read and Translate

Text 3

THE LODGING INDUSTRY

The most important concept of accommodations in relation to tourism is that these businesses are an essential part of the wide array of tourism suppliers. A traveller is in a particular destination area because he or she had a certain motivation, either for business or pleasure. In order to prosper, the accommodations manager must recognize the integral relationship that exists between accommodations and the volume of tourists attracted to the area. Success of the accommodations will thus depend upon the effectiveness of the tourism marketing program conducted on behalf of that destination. The extent of the lodging industry’s financial support for its local convention and visitor’s bureau, chamber of commerce, area and /or regional tourism promotion organization will determine such marketing success.

The lodging industry is made up of hotels, motels, condos, tourist courts, sporting and recreational camps, inns, etc., that is, establishments engaged primarily in providing lodging or lodging and meals to the general public.

Since the mid – 1970 the world lodging industry has been experiencing the greatest building boom in its history. It is projected that the additions to the supply of overall rooms available will level off and that occupancy rates will increase. Room rates are expected to continue to rise about 3-4 percent a year.

A dramatic marketing innovation is the introduction of “yield management” to the lodging industry. By using computerized systems similar to programs employed by airlines, hotels and motels will be able to monitor guest-room inventories and measure them against demand on a day-to-day, or even hour-by-hour, basis.

The lodging industry has practiced market segmentation in recent years. Many of the big chains offer products at almost every price level – full-service luxury hotels, luxury all-suite hotels, moderately priced full-service hotels, moderately priced all-suites, moderately priced limited service, and economy or budget motels. The two fastest growing segments of the industry are all-suites and economy segments.

Between 1960 and 1990, the trend in the lodging industry has been away from independently owned and operated properties toward chain and franchise affiliations. There are also referral groups or voluntary membership associations. The trend towards consolidation and acquisition will continue because chains have the potential for improvement in productivity and the advantages that accrue to large size. Chains can most effectively use training programs, employee selection programs, major equipment such as computers, and research. They can experiment with different layouts, prices, advertising, equipment, and so on, and what works well in one property can be employed chain wide.

One reason for the popularity of the referral groups is that members who are independent operators achieve the marketing benefits of chains of chains without chain membership.

Franchising is also well known in the lodging industry and has made a rapid penetration into the marketplace. Franchisees have the advantage that they receive the knowledge, advice, and assistance of a proven operator. Franchising also spreads the costs of promotion, advertising, and reservation systems over all outlets, making the unit cost much lower. If the franchiser has an excellent reputation and image, the franchisee benefits greatly. Most of the companies with franchise operations also operate company-owned units. Industry predictions are that as the industry grows and matures, there will be less franchising, which will give the chains more control over their properties and operations so that they can maintain the desired quality control. Increased competitiveness and improved properties will necessitate having the ability to make these improvements.

A trend in the lodging industry appears to be that more large properties will be operated under management contracts. Investors, such as insurance companies, frequently purchase hotel properties and turn them over to chains or independents to manage, a process that has advantages to both parties. The owner has the financial resources and the manager has the reputation and experience to manage the property profitably.

A discussion of the lodging industry would not be complete without mentioning the burgeoning bed and breakfast (B&B) segment. It is the fastest growing segment of the accommodations industry and provides both luxury and economy accommodations.

Notes

array – множество

volume – объём, большое количество, масштабы

extent – пределы, размер, величина

be engaged in – занятые в

chamber of commerce – торгово-промышленная палата

lodging industry – гостиничный бизнес

occupancy rate – количество гостей на единицу площади (процент занятости)

yield management – управление прибылью

monitor - контролировать

measure against demand – соразмерять с учётом спроса

all-suite hotels – апартаментный отель

acquisition – приобретение, поглощение

accrue – увеличиваться, накапливаться

layout – компоновка, схема, план

referral group – ассоциация независимых гостиниц

mature - развиваться, доводить до совершенства

profitability – прибыльность, рентабельность

burgeoning segment – растущий сегмент