LESSON 2: The Sociology of Tourism the number of tourists at any time, & the Life Stages of the Family

Stages of the Family 4. incentive tours which are given by firms

extent to which the tourists adapt to local The presence of children in the to employees as a reward for a special
The Social Nature of Travel norms. family limits travel. More leisure time is achievement or as a motivation for
Travel is brought about by the spent at home. achievement.
social nature of man. Human beings, as Socioeconomic Variables & their Effect on As the children grow up & leave
social animals, feel comfortable in a tour Travel home, the married couples renew interest Special Interest Tours
group. They feel that their trip is more in travel. Couples in these life stages usually Special interest group travel is
enjoyable & free from anxiety if they join in Age have more discretionary income & are becoming more popular at present. These
a group tour. There are several differences more financially capable to travel. are tours arranged for those who are
Tourism evolves a mutual trust & between patterns of travel based on age. interested in a particular activity such as
respect for one another & the dignity of life Younger people tend to select more The Rise of New Travel Patterns bird watching, festivals, fishing, hunting,
on earth. According to Pope John Paul II, active recreational activities than older Travel Clubs scuba diving, photography, flower
"The world is becoming a global village in people. The elderly prefer more passive The most significant development arrangement, golf, skiing, mountain
which people from different continents are forms of recreation, such as visiting friends in group travel consists of travel clubs. A climbing, & the like.
made to feel like next-door neighbors. In & relatives, fishing, sightseeing, & playing very good example of this is the Club
facilitating more authentic & social golf. Mediterranee which started in Western Preferences of the International Tourist
relationships between individuals, tourism Europe & then spread to North America &
can help overcome many real damages & Income and Social Status other areas of the world. In this group Relaxation Versus Activity
foster new bonds of solidarity. Income & social status have a great travel plan, club member enjoys travel Before the workweek for most
influence on travel. Rich persons, as well as opportunities & vacation destination people including the middle class was long
The Social Effects of Tourism persons with higher social status, travel facilities at a much cheaper price than that & exhausting. Thus, they demanded
Tourism is concerned with the more than those with lower income & paid by a nonmember. The holidays that offered relaxation & rest. At
movement & contact between people in social class status. accommodations offered by the club range present, the workweek has been shortened
different geographical locations. In Higher-income tourists stay longer from deluxe to very modest. There is also a & the annual holiday leave has been
sociological terms, this involves: & spend more per day than those with wide choice of locations, climate, & other lengthened.
1. social relations between people who lower incomes. vacation features. Work has become less tiresome &
would not normally meet people have become used to greater
2. the confrontation of different cultures, Education Airline Group & Arrangements leisure. Relaxation has become used to
ethnic groups, lifestyles, languages, levels There is a strong correlation Another development in group greater leisure. Relaxation has become
of prosperity, & the like between education & travel. Generally travel is the introduction of different types possible throughout the year.
3. the behavior of people released from speaking, the better-educated members of of tour fares promoted by airlines. These
many of the social & economic constraints the population have a greater desire to are the following: Familiarity Versus Novelty
of everyday life, and travel. 1. groups of 15 or more are given reduced In general, most tourists on their
4. the behavior of the host population More educated travelers tend to be fares first trip abroad tend to seek familiarity
which has to reconcile economic gain more sophisticated in their tastes. They 2. charter service is given by some airlines rather than novelty. They search for
&benefits with the costs of living with prefer activities that require the to affinity group tours which are intended something that will remind them of home,
strangers. development of interpretative & expressive for those affiliated to a legitimate group for whether it be food, newspapers, living
skills, such as attending plays, concerts, art a period of six months or longer quarters, or another person from their own
The degree to which conflict will museums, reading books, playing golf. & 3. public charter in which an entire airplane country.
occur between host & guest depends upon skiing. is made available to a group of persons who As soon as they find a place where
the similarity in their standards of living, travel to the same destination they feel at home, these tourists will go
back to the same place for a number of The Organized Mass Tourist own country. He is almost totally immersed attitudes & behavior. A visit to a foreign
times. Not until they have gained more This type of tourist is the least in his host culture. He tries to live the way country may result in a change in attitude
experience in travelling will they want to go adventurous. He buys a package tour in the people he visits live & to share their toward the people of that country. Travel
a new environment - to see customs & which the itinerary of his trip is fixed in shelter, food, & habits. He retains only the may also stimulate the sale of products in
cultures different from their own, & to mix advance & his stops are well prepared & most basic of his native customs. He the destination visited.
with people who speak, eat, & dress guided. arranges his own trip & does not seek the
differently He seldom makes decisions for help of a tour agency. He does not have a THE IMPORTANCE OF CULTURAL TOURISM
himself. He prefers a familiar environment fixed itinerary. Cultural tourism includes all aspects
Dependence Versus Autonomy rather than a new environment. of travel in which people learn about each
In the past, tourists joined package LESSON 3: TRAVEL & CULTURE other's way of life. Thus, tourism is an
tours in which transportation, lodging, The Individual Mass Tourist THE EFFECTS OF CULTURE ON TRAVEL important means of promoting cultural
food, sightseeing, & entertainment were This type of tourist is similar to the Culture can be defined as a "set of relations & international cooperation. Louis
fixed in advance by the tour agency. At organized mass tourist, except that the beliefs, values, attitudes, habits, & form of D' Amore, the past president of the
present, there is the emergence of a group individual mass tourist has a certain degree behavior that are shared by a society & are Canadian Travel Research Association, once
of tourists who would like to acquire a of control over his time & itinerary & is not transmitted from generation to said, "These millions of daily person to-
sense of personal autonomy regarding their bound to a group. generation". person encounters are potentially a
leisure time. However, all the major Knowledge of the culture of a powerful force for improved relations
They would like to travel on their arrangements for his tour are still made country is important in order to understand among the people & nations of the world,
own & not part of a group. They would like through a travel agency. Like the organized how individuals within that country will relations which emphasize a sharing &
to feel independent - in complete control of mass tourist, he also travels within his own behave. Lack of understanding & inability to appreciation of cultures rather than the
what they do & how they do it. country & goes out of it occasionally. communicate with the host culture might lack of trust bred by isolation."
Familiarity is still dominant, but less than result in culture shock for the tourist.
Order Versus Disorder the organized mass tourist. A Filipino traveler who visits the US CULTURAL FACTORS WITH TOURIST APPEAL
In the past, tourists sought holidays for the first time may experience culture
that enforce the traditional concept of The Explorer shock in the open display of life & ART
conformity - set meals at fixed times, This type of tourist arranges his trip emotions, the frankness in conversation, Generally, the arts include
guidebooks that told them the right places by himself & looks for comfortable the permissive way children interact with performing arts & fine arts. The former
to visit, & resorts where their fellow accommodations & reliable means of their parents, & the practice of allowing refers to live theater, music, & dance, & the
tourists were tidy, well behaved, & properly transportation. He tries to associate with aged parents to stay in the home for the latter includes painting, sculpture, graphic
dressed. the people he visits & to speak their aged. arts, & architecture.
Now, the new generation of language. The explorer dares to leave his Culture patterns are changed by
tourists is not very much concerned about country much more than the previous two internal forces. Within a group, there are MUSIC AND DANCE
what to wear & how to behave when on types but goes back to it when the people who are more willing than others to In several countries, music is a
holiday. Informality in behavior, a greater experience becomes too rough. try new things. Since these innovators are major source of enjoyment & satisfaction to
tolerance toward the differences of others, Although novelty dominates, the better educated, have a high income, & tourists. The Philippines, Hawaii, Spain &
& freedom from institutionalized explorer does not adopt completely the more achievement-oriented than others, the US are examples. Resort hotels, in
regulations are now the characteristics of lifestyle of the host country. they tend to be opinion leaders & to be particular, can give visitors many
the modern traveler. highly sought-after by marketing people. opportunities to enjoy the best local music.
The Drifter Culture patterns are also changed Evening entertainment programs, concerts,
Type of Tourist Roles The drifter goes the farthest away by external forces. Contact with other recordings, & sound reproduction systems
from the accustomed ways of life of his environments may change previous are greatly appreciated by tourists.
 Dancing, in its native or ethnic order to develop more interest in their motivating to individuals interested in
forms, is one of the most appealing aspects products & to increase sales in several LITERATURE & LANGUAGE political science & government.
of a country's culture & can be presented market areas. The literary achievements of a When a person visits another
as a tourist attraction. The color, costumes, The best examples are shopping country form an important part of travel country, he or she becomes aware of the
music, setting, & skill of form & execution centers near destination areas where motivation. Books, magazines, newspapers, type of government in operation &
add to the attraction. Almost all countries tourists can easily find the product or booklets, pamphlets, & other printed compares it with the government in his or
have native dancing or ethnic dancing. service they want. Shopping is one of the literary works are significant expressions of her own country.
Ethnic music & dancing are a part most important elements of tourism. Hong the culture of a country.
of the culture & should be used to Kong & Singapore are the best examples of A highly educated person is likely to RELIGION
entertain tourists. The best place for such tourist business. speak or at least have studied more than The religious pilgrimage is another
entertainment is resort hotels. one language. Interest in the language of motivation for travel. The most popular
AGRICULTURE another country is an incentive for travel. among the Muslims is the pilgrimage to
HANDICRAFT The agriculture of a country may be Most travelers like to learn the Mecca. Many people go to the different
To satisfy tourists, gifts & souvenirs interesting to a large segment of tourists. language of the country they visit. They headquarters of their church organizations
for sale should be manufactured in the Dairy undertakings, fresh fruits & usually start learning the common & to places that are well-known in their
country where the purchase is made. vegetables, crops, & poultry & livestock are expressions used in ordering food in a religious literature. These people usually
Usually, a tourist is dissatisfied when he types of farming that are important restaurant or in talking with the hotel or travel in groups.
buys a particular souvenir & then discovers elements of culture. other tourism employees.
later that the article he bought was made in An important aspect of tourist FOOD & DRINK
another country. services in rural areas is the farmers' SCIENCE Food & drink is an important part
The locally produced article is market in which local agricultural products Tourists are interested to know the of the culture of a country. Tourists usually
useful & attractive; it should be made are sold to travelers. scientific activities of a country, especially enjoy native food especially those which
available in conveniently located shops. A Local tours should include those in technical industries, education, or are local or ethnic in nature.
visit to shops where handicrafts are actually agricultural developments & services so scientific research. Restaurants & hotels can make a
being made by the craftsman is an effective that tourists can see the agricultural Tourist promotion organizations good impression to the tourists f they serve
form of tourist entertainment. products in the country & perhaps try some would be rendering a great service to the local dishes & explain the menu- what the
of them. scientific community by providing facilities dish consists of & how it is prepared.
INDUSTRY & BUSINESS for the exchange of scientific information,
Most travelers, particularly EDUCATION organization of scientific installations, & HISTORY
international travelers, are usually curious The inhabitants of one country are other activities which provide scientific The historic resources of a country
about the country's industry, commerce, usually anxious to know the educational information to visitors. reveal its cultural heritage. The
manufactured products, & its economic system of another country. The campuses The most popular scientific preservation of history & the quality &
situation. of the colleges & universities of a country attractions are museums of science & management of the museums is very
Industry tours are a very effective are particularly appealing to tourists. industry, planetariums, & visits to unusual important for the success of tourism.
way of developing an interest in the culture Several universities conduct adult scientific installations such as atomic To be familiar with the history &
of a country, as well as providing a education programs within the university's powerplants & space exploration centers. archeology of an area is a very important
potential market for the product being continuing education service. These travel motivation. One of the weaknesses
made. educational opportunities attract students GOVERNMENT observed in historical museums is that the
Business or industrial groups often from many countries around the world. Countries differ in their systems of explanation of the exhibits is given in only
conduct tours to become familiar with the Thus, students are motivated to travel. government. Visits to centers of one language. Hence, most tourists do not
markets & processors in other countries in government, such as capitals, are very enjoy the historical exhibits because they
do not understand the language used in the providing other travel-related  Car ownership continued to grow important to the business traveler while
explanations. services. at a fast rate, mainly at the the cost of the trip is the traveler's primary
 The railways began to market expense of long-distance rail consideration.
LESSON 4: Transportation Sector their services more aggressively. travel. Jagdish Sheth developed a theory
Transportation & Travel Evolution  Travel agencies & tour companies  Mass air travel was another post- identifying transportation variables & the
Transportation & travel have undergone were formed. World War Il occurrence. The value of travelers. He found out that
many changes. A review of the history of  Thomas Cook, an innovator in this introduction of wide bodied jets in travelers choose a travel mode based on
transportation & travel shows that their field during this era, began his 1970 greatly increased air travel. how they psychologically weigh the five
evolution took seven eras. These are the: company's activities in the UK in  The "mass tourism" philosophy & factors, namely: functional, aesthetic/
 pre-industrial travel system era 1840. marketing approaches were emotional, social/organizational,
 This was the period before the  More people traveled in this era prevalent during the 1950s and situational, & curiosity.
widespread industrialization in than in the previous one. 1960s. • Functional utility of a mode is its expected
Europe & North America.  express-travel system era  post-mobility adjustment era performance for a specific purpose.
 It was before the development of  During this era, express service  This era began in 1973 to 1974 as Examples are departure & arrival times,
railways on the two continents. increased. a result of the oil embargo safety record, the directness of the trip, &
 There were few common carriers.  Trains & other forms of generated by the Organization of the number of stops or transfers.
There were almost no regularly transportation did not stop at Petroleum Exporting Countries • Aesthetics/ emotional is related to such
scheduled transportation services. every station or terminal but only (OPEC) & the resulting increase in aspects as fear, social concerns, style,
 Travelers made their own at the major ones. fuel prices. luxury, comfort, & other personal feelings
arrangement with several  This increased the speed of travel  The events of the energy crisis that the form of transportation might
suppliers. & encouraged more travel than basically changed the travel evoke.
 Only few people had the money before. patterns throughout the world. • Social/ organizational shows that the
& the reason to travel.  automobile-based travel system era  The present era is one in which frequent users of certain kinds of
 early-industrial travel system era  This influence of the privately travelers continue to look to transportation are stereotyped according to
 During the era, road owned automobile was enhanced alternative, group oriented modes sex, racial origin, income, price/cost, &
improvements such as railways, in North America and Europe from of transportation. education. For example, those who take
canals, & steamship services were the 1920s onward. bus trips are usually perceived to be
brought about due to rapid  Car ownership boomed in North Selection of Transportation Mode female, either young or old, while those
industrialization & advances in America There are many reasons why who take bus tours & cruises are generally
transportation technology.  Motorways, interstate highways, people select one transportation mode retired people.
 Common carriers came into & other trunk highways were over another for their business & pleasure • Situational refers to how conveniently
existence & began to offer developed in the latter half of this trips. The most common reasons are cost, located the particular mode of
regularly schedules transportation era which was from 1920 to 1974. traveling time, safety, convenience, transportation & its terminal facilities are
services.  The automobile was predominant comfort, availability, frequency of trips, for the traveler.
 Travel increased because more over other travel modes from ground services, terminal facilities & • Curiosity utility refers to the traveler's
people who had money traveled. 1920 to 1945. locations, status & prestige, & departure & perceived need to do something new &
 mature-railway system era  modern-tourism travel system era arrival times. different. Flying transatlantic on Concorde
 This era was characterized by  The period from 1945 to 1974 is People belonging to different travel may have a high curiosity value for many
railways which expanded their known as the modern-tourism segments have different value perceptions. business travelers.
operations by running hotels & travel system era. For example, the time spent in traveling as
well as departure & arrival times are very
Travel by Train • Train has continued in Europe & Asia • Many passenger ships were converted • Food is offered throughout the day from
• Trains stimulated travel within the US, more than in the US, particularly for long- into cruise ships. those that were too old or seven-course meals to themed-event
Canada & Europe in the 19th & early 20th distance travel. too large were junked or scrapped. dinners.
centuries. • In 1987, the Trans Europe Express (TEE) • Others that had historical value were • Cruise ships also provide almost
Britain had its first organized train tour in had been replaced by a new system which converted into tourist attractions, for continuous entertainment which include
1841 when Thomas Cook organized an include high-speed trains, with both first & example, the Queen Mary which is language lessons, dance classes, table
excursion between Leicester & second-class accommodations. permanently docked in Long Beach, tennis, aerobics, etc.
Loughborough. • The first sensational rail accomplishment California became a tourist attraction & a • For many passengers, the numerous
. In 1851, 3 million Englishmen boarded the after World War II was Japan's shinkansen hotel. opportunities to socialize on a cruise
train to see the Great Exhibition in London. or bullet trains which travel at speeds • Cruises are more of a vacation experience vacation is one of its major attractions
• The first transcontinental route in the US greater than 140 miles per hour. than a transportation mode. • Passengers who prefer a less active type
was completed in 1869. With the advent of • They provide a ride so smooth that a • Cruises are divided into three types of vacation can relax by the pool or on deck
the steam locomotive in 1825 until after passenger can leave a cup of tea or coffee depending on the duration of the trips. & enjoy the warm climate & beautiful
World War II, travel by train became the on a windowsill & not a drop will spill. • Short cruises are one week or less, sunsets.
primary means of movement within the US. • At present, Japan has the best railroad intermediate long cruises last one to four • The Caribbean is the world's largest cruise
• During the latter part of 1800s & the first system in the world, with 26,000 fast & weeks, & long cruises go around the world destination, cruise passengers for
part of 1900s, the train connected major efficient trains scheduled a day. • France & take one to three months. destinations within the Caribbean comprise
population centers & popular spas & has its own super train, the Tres Grande Cruise Ship 50% of total visitor arrivals.
resorts such as the Niagara Falls, Long Vitesse which travels at a • Short-duration cruises are more popular • Cruises are announced several months
Beach, New Jersey, & Las Vegas. speed of 175 miles per hour between Paris because they require less vacation time & before the departure & are also sold mostly
• This dependence on the train is shown in & Lyons & Marseilles. are less expensive. Other reasons are by travel agents as packages.
the development of Las Vegas where large • In Russia, the Trans-Siberian Railroad, the travelers can satisfy their desire to • One significant marketing strategy used
hotels were located downtown, a short longest in the world (5,787 miles) links experience new environments & see new by the cruise industry is to offer heavily
distance from the railroad station. This gave outlying Siberian industrial regions & cultures & still bring with them the comfort, discounted or free air flights to the post of
tourists who arrived by train quick & easy mining centers with European Russia. safety & convenience of home. embarkation.
access to hotels & casinos. Railroads are important to the Russian • Cruise ships may be divided into large • Younger people prefer the three-to-
• In 1863, long-distance rail travel was economy. vessels which can accommodate 180 or seven-day cruises. Older people take
boosted when George M. Pullman built the more passengers & small vessels which cruises of seven days or less.
Pullman coach, a luxury first-class sleeping Travel by Ship carry less than 100 passengers - they are • Cruise passengers tend to be repeat
& dining facility. • The steamship era began in 1840 when called "mini-cruises" or "ultra-yachts" customers. Once they experience a cruise,
• In 1868, the diner car was introduced on Sir Samel Cunard pionereed the first • Recently, the typical ship was built to they begin planning for the next.
the Chicago & Alton line. Ten years later, an transatlantic-scheduled liner trips. carry 850 to 1,250 passengers but now, the
elaborate meal could be obtained in all • However, the introduction of the jet average capacity of a new ship is 2,000 Travel by Automobile
trains. aircraft led to the rapid decline in the ships passengers. • The real inventor of the automobile was
• Several attempts have been made to as scheduled passenger transportation • The large cruise ships offer a wide array of Carl Benz of Mannheim, Germany. In 1885
determine why travelers select the train as mode. services & amenities to guests, most of to 1886, he combined the bicycle & the
a transportation mode. Four evident factors • In the late 1990s, the era of travel by which are packed into the cruise. international combustion engine &
are: cost/price, comfort, safety & the ability ships expired. Cruise ships took the place of • A cruise ship is both a floating hotel & designed the complete vehicle engine
to see the area where the train is passing. regularly scheduled passenger ships. resort because the guests are housed, fed consisting of the engine, chassis, &
& entertained. transmission.
• Then came Henry Ford who, in 1908, • The bus performs two major roles in mail from Key West, Florida to Havana, next 200 years, the lodging industry was
produced his Model T car built with an North America, the first is to provide a Cuba. influenced by the development of road
assembly technique for mass production. regular schedule of intercity passenger • The commercial airline industry improved transport.
• The automobile brought about a more transportation services, and the second is further in the 1970s with the introduction Coach service was established by
random pattern of travel movements, to provide charter & tour services. of wide-bodied aircraft such as the Douglas innkeepers to attract business. The inn was
opened up new destinations, & hastened • The main reasons for selecting bus travel DC-10, Boeing 747, the Lockheed Tristar used not only as a boarding house but also
the development of elaborate networks of over other modes of travel are convenience 1011, & the European Aerobus. as a booking office, waiting place, eating
automobile-oriented facilities. & services & economy. • The 1980s had witnessed still further establishment, & as center of the town's
along highways & roads. • Charter & tour service is the fastest improvements in aircraft technology with social activities.
• Example of new facility types that growing segment of the bus or motor coach the introduction of the DC-9-80 & Boeing With the rapid development of the railways
developed in the US & Canada after World industry. Several tour packages are 757 & 767 designed for fuel-efficient in the 1820s & 1830s, a different kind of
War II were the tourist court & the motor developed by tour brokers who charter operation offering approximately 30% hotel developed. In Europe, large hotels
hotel or motel. buses & arrange all the other components lower fuel consumption for passengers were built next to or across the downtown
The automobile stimulated tourism by of the tour, including the itinerary lodging, than the older models. railroad station.
creating attractions along tourist routes sightseeing, admission, tour guides, meals, • The introduction & development of
made accessible by the automobile. etc. LESSON 5: Accommodations automobile industry led to the
Examples are homes of historical figures, • Motorcoach tours usually last five to six HISTORY OF ACCOMMODATIONS OR establishment of the roadside hotel. With
scenic areas, & historic shrines & days & are limited to a particular LODGING INDUSTRY the construction of highways &
monuments. geographical area. The two principal • The lodging industry developed because expressways, the lodging industry
• Two important aspects of automobile markets for charter & tour services are of the need to provide accommodations for responded to the needs of the motorist.
travel are recreational vehicles & car school-age children & senior citizens. travelers. Thus, the motor hotel or motel emerged.
rentals. • The present coaches are wider, have • Early roadside inns were mentioned in • After World War II, advances in air
• The increasing popularity of recreational more legroom, more baggage space, several instances in both the Old & New . transportation led to the increased number
vehicles led to the establishment of new lavatories, climate & noise controls, better Testaments. of travelers who demanded more & more
campgrounds during the 1970s. lighting, & panoramic window views • The history of the hotel in its present hotel space.
• Related to the growth of the automobile form goes back to the Middle Ages. In the • The widespread use of the car led
has been the growth of the car rental Travel by Air 13th & 14th centuries, German & English hoteliers to build more roadside motels.
market in the 1960s & 1970s. The car rental • On December 17, 1903, the Wright literature made frequent reference to the Business travelers demanded to build more
industry began in 1918 when a Chicago Brothers took a flight on a beach in North inn. roadside motels, and demanded specialized
Ford dealer started to rent secondhand Carolina which lasted 12 seconds with a During the height of the Industrial accommodations, including meeting &
model Ts. distance of 120 feet. Revolution in the 1700s & early 1500s, convention facilities.
• In 1927, the air industry developed there was greater demand for Although the hotel industry was booming,
Travel by Bus/Motor Coach regularly scheduled passenger trips accommodations as people migrated to the several small, family-owned hotels could
• Bus travel is the most flexible & between Boston & New York. cities to work. not compete with the fastest-growing
economical form of transportation. • In the US, almost all early airlines started The emerging middle class could afford chains. Ellsworth Statler was the first hotel
• In 1928, the Greyhound Company, the by carrying mail for the post office. One of accommodations when traveling away from chain pioneer in the US.
largest privately-owned bus company in the the first was Varney which began in April home. America's first hotels were seaport • In the history of deluxe hotels, the most
world, was established. By this time, buses 1926 when it carried a woman passenger inss. An example of an Early American inn is famous name is that of Hilton Corporation.
traveled from New York to Loas Angeles in along with the mail. Manhattan's Fraunces Tavern. Conrad Hilton built an empire that includes
about 5 days. • Pan American Airways had the first . By the middle of the 17th century, the the Waldorf-Astoria in New York & the
international flight in 1927 when it carried public stagecoach had appeared. In the largest hotel in the US.
• Among the first-class hotels, the fastest- budget to luxury and can accommodate Camping is a popular form of It provide basic amenities such as a
growing group was the Sheraton chain these travelers and even convention overnight accommodation in both Europe bunk bed & a commonly shared toilet &
founded . by Ernest Henderson. delegates. These are usually located near and North America. bathroom. The traveler provides his or her
• In 1952, Kemmons Wilson founded the beaches and offer more amenities, shops, Campgrounds usually appeal to own bedding. Hostels appeal primary to
Holiday Inn chain & its concept of clean, and recreation opportunities. families who travel in recreational vehicles young travelers,
comfortable, & reasonably priced and the stopping spots are often around in
accommodations for the ordinary traveler. Pensions government parks and forests. Classification of Hotels
• The change in the function of a hotel Pensions are found principally in  ACCORDING TO LOCATION
brought about a change in its architecture. Europe. These are usually family-owned Bed and Breakfast -Center-city, suburban, airport, or highway
Owners renovated older downtown accommodations facilities. In German Bread and breakfast is a form of  BASED ON GUEST TYPE
properties & adapted them to the needs of speaking parts of Europe, a pension is also lodging which originated in Europe. This - commercial, convention, or resort
the modern-day traveler. called Gasthaus. Pensions and Gasthaus form of accommodation provides a bed for  ACCORDING TO PRICE
• Hotels changed in appearance as extra usually offer continental breakfast but do the night and breakfast the next day. -economy, standard, firs-class, or deluxe
features were added such as glass-covered not have facilities for other meals. Pensions
elevators, atrium lobbies, a variety of are known for their informal family APARTMENT HOTELS Rating Systems
restaurants & bars & full array of atmosphere. These are buildings which contain  1 STAR
recreational opportunities. PARADORS several independent and furnished or semi  Good, better than average
Paradors are unique to Spain. furnished apartments. These are leased to  2 STAR
Types of Accommodations These are generally old castles, convents, tourist and travelers on a long-term basis  Very Good
HOTELS or monasteries that have been converted and offer basic services to its tenant, similar  3 STAR
Hotels can be a 10-room boarding into hotels by the government and are to hotels.  Excellent
house or a building that has a thousand or operated by the government. HEALTH SPAS  4 STAR
more rooms, convention & meeting Health spas are hotels and resorts  Outstanding
facilities, recreation facilities such as CONDOMINIUM HOTELS which cater to people who go to spas or  5 STAR
swimming pools & tennis courts, 24-hour Condominium hotels are a recent minerals for medical treatment or weight  One of the best in the country
room service, with several restaurants and innovation. These are often hotels with on. The idea of visiting health spas
bars and various types of entertainment. apartments (condominiums) instead of originated in Europe. Organization of the Lodging Industry
Hotels have been designed and basic rooms. The condominium units are At present, several health spas in  A typical hotel has seven major
built to meet almost any kind of budget or sold by the hotel developers to individuals Europe offer modern techniques such as divisions, namely: personnel,
comfort level that the public might want. who are given a tittle to the physical real medically supervised rejuvenation engineering & maintenance,
estate. programs which include supervised diets accounting, security, food & beverage,
Motels or Motor Hotels The individual owners then and rigorous exercises. marketing & sales, and room division.
Normally, motels offer rooms only contract the developer or a management Each division is run by its own division
& free parking to guests. These are often company to operate the hotel & rent the Private Homes head.
found along busy highways & cater space to visiting tourists. The owners have The private home is the earliest  The personnel division recruits
primarily to transient & cost-conscious the right to stay in their own units during form of overnight lodging for travelers. It new employees & administers
travelers. specific periods of the year with a reduced provides lodging to tourists who cannot be policies & employee benefits for
room rate. accommodated in hotels and motels during the company.
RESORT HOTELS peak vacation periods.  The engineering & maintenance
Resort hotels are intended for Campgrounds division makes the necessary
vacation travelers. These hotels range from Hostels
 repairs & implements the hotel's franchisee signs a contract with the means that there are no meals For conventions & conferences,
energy management program. franchisor to maintain certain operating included. This is the most commonly used hotels compete with one another by
 The accounting division handles standards & to use the franchise name on room rate quoted by North American offering the lowest room rate. Profits on
the financial activities of the the hotel or motel. hotels. banquet meals & sales of liquor make up
operation which include payment The franchisee receives the • AMERICAN PLAN (AP) for the discounted room rates.
of bills, sending out statements, benefits such as extra business as a result means that breakfast, lunch, &
payroll, and compiling monthly of the franchisor's national or international dinner are included HOTEL PROFITABILITY
income statements. advertisements, the use of the franchisor's • FULL PENSION (FP) Room Occupancy
 The security division provides operating & accounting system, & a line European version of AP, but meals A simple measure of a hotel's
protection for both employees into the franchise chain's reservation are usually a fixed menu with little or no profitability is its room occupancy. It is
and guests. system. choice. obtained by dividing the number of rooms
 The food and beverage division is (Ex. Hilton, Wyndham, Mariott, Hyatt, • MODIFIED AMERICAN PLAN occupied by guests on any night by the
responsible for the food and Sheraton, Holiday Inn) (MAP) number of rooms in the hotel & by
beverages that are served. Includes breakfast & dinner but not multiplying the result by 100 to determine
 The marketing and sales division is Management Contracts lunch or breakfast & lunch but not dinner. the occupancy on a percentage basis.
responsible for selling the rooms Under this contract, the hotel In Europe, this is known as demi For instance, if a 125-room hotel
and food service. It is involved in management company does not have a pension has 75 rooms occupied in a particular night,
advertising, development of financial interest in the hotel's land & • HOTEL GARNI OR PENSION GARNI its occupancy will be:
promotional materials, and building. The landlord owns the property A continental breakfast is offered 75/125 x 100 = 60%
making direct contacts with but does not have any interest in managing by most European hotels & is included
prospective clients. it. In return for operating the property for in the room rate. This type of plan consists Occupancy can also be determined
 The room division is responsible the landlord, the management company of rolls, coffee, & sometimes juice. for a week, a month, a year, or any other
for the front desk, telephone, receives a basic annual management fee, period of time. In this case, the numerator
reservations, and housekeeping plus an incentive, which is based on the ROOM RATES is the number of rooms occupied for that
department. hotel's gross profit &/or net profit but may The maximum room rates that period & the denominator is the number of
also be based partly on total sales. hotels charge for a room normally depend rooms available during that period, that is,
The management contract also on the number of people occupying it. the number of rooms in the hotel times the
allows hotel-operating companies to widen These rates are called rack rates. These are number of days in the period.
Management Methods their investment base by increasing the posted on the inside of the entrance door For example, if we want to know
Traditionally, hotels are operated number of rooms managed, thereby of each guest room. The rack rate is not the occupancy for a week in a 125-room
by the people who own the property. In increasing their profits. Developers who do always the rate that is paid for a room. hotel in which 463 rooms were occupied
some cases, the operator may lease the not have experience in hotel management Hotels, like airlines, have a system of during that week, the occupancy
hotel from the owner & then manage it. In usually build large hotels & then turn them discounted prices. percentage would be:
other cases, special arrangements are over to hotel management companies to The revenue that is not obtained 463 x 100 = (463/875) x 100 = 52.9
made such as franchising and management run them. (Ex. Intercon, Novotel) for a guest room is gone & cannot be (125 x 7)
contracts. recovered. Thus, hotel offer discounted
Hotel Terminology rates to special classes of people to Double Occupancy Rooms
Franchising Room rates for hotels are quoted in encourage them to stay in the hotel. For Occupancy percentage is not
Hotels that are franchised are terms of what meals are included in the example, there are special rates for usually the best measure of marketing
usually owned & operated by the same price. business travelers, government employees, success for a hotel because it does not
person or company. The hotel operator or •EUROPEAN PLAN (EP) & other similar groups. show whether the revenue is being
maximized. Whether a room is occupied by revenue for a period by the total number of For example, if the fixed cost of a One method is for a hotel to advise
one person or by two persons, the guests accommodated during that period. 125-room hotel is $1,950,000 for a year, its the customer that it will honor a
occupancy percentage will not change, but For instance, if the total revenue average room rate is 580, & the variable reservation only if the customer arrives at a
the revenue obtained will be changed. for the week was $65,529 for a hotel cost per room occupied is $20, its certain stipulated time.
It is for this reason that hotels occupied by 1,050 guests, then the average breakeven point would be: Another method is for the hotel to
determine the occupancy & the double daily rate per guest for the week is: $1,950,000/$80.00-$20.00=$1,950,000/S60 ask for a deposit when a room is booked.
occupancy rate which is the number of $ 65,520/1,050 = 562.40 = 32,500 Upon receipt of the deposit, the hotel will
rooms occupied by more than one person. The 32,500 rooms to be occupied give the customer a written document
Double occupancy is determined by Average Length of Stay during the year can be converted into an confirming that the reservation has been
dividing the number of guests To maximize revenue & increase occupancy figure as follows: 32,500 x 100 = made. The hotel guarantees that the room
accommodated during a certain period by room occupancy, hotels try to increase the (32,500/125x365)x100=(32,500/ will be available & the customer guarantees
the total number of guest rooms during length of stay of customers through 45,625)x100 = 71.2% that the room will be paid even if he or she
that same period. advertising & other marketing methods. If This means that the hotel must does not show up.
For example, if 463 rooms were customers can be motivated to stay an average 71.2% occupancy during the course
occupied by 713 guests during a week, the extra day or two, this will mean more of the year. Hotels and Airlines
double occupancy is: revenue for the hotel. A breakeven analysis is an At present, there is a natural link
713/463 = 1.54 important managerial tool because it shows between airline companies & hotels. This is
The 1.54 double occupancy ratio Breakeven Point the percentage of occupancy that a hotel due to the changed nature of
means that 54% of the rooms were double Hotels are often interested to know must have to cover expenses. transportation
occupied. their breakeven point. It is that point at According to Lane (1994), there are three
which a business will make neither a profit Accommodation Reservation major reasons why airline companies link
Average Rate per Room Occupied nor a loss. Many large hotels have with hotels. These are:
Another way of measuring the Fixed costs/Contribution margin computerized reservation systems. 1. Their desire to protect insisting business
maximization of revenue is the average rate However, despite these systems, & develop future business, thus increasing
per room occupied. The average rate will Fixed costs are those that stay the overbooking still occurs. their profits;
increase if more expensive rooms are sold same regardless of the volume of the Overbooking is selling more rooms 2. The expectation that hotel ownership
or if more rooms are double or triple business. Examples are management than the actual available rooms. Hotels do will boost tourism development in their
occupied. The average room rate is salaries, interest, depreciation, insurance, it for reason. If hotels book only to capacity, home countries; and
obtained by dividing the revenue for a property taxes, mortgage payments, they would often end up with empty rooms 3. The desire to expand national culture
period by the number of rooms occupied amortization, & physical plant because of "no shows" or people who do
during that period. maintenance. not advise that they want their reservations Today, there are many airline hotel
For example, if a hotel had 463 Contribution margin is defined as cancelled. links such as KLM Hilton International, Air
rooms occupied during a week & a room the average room less the variable costs of Hotels know from experience that France & Meridian Hotels, Air Lingus
revenue of $37,640 for that week, the having a room occupied. there is a no show percentage that can be (Ireland) & Dunfey Hotels, & Japan Airlines
average room rate is: compensated by overbooking. However, & Nikko Hotels.
S 37,640/463=81.30 Variable costs are those that the numbers do not always work out The links between hotels & airlines
change according to the number of guests correctly. The result is disappointed are not always formed by ownership or
Average Daily Rate per Guest in a hotel. The variable costs for a hotel customers & negative publicity. merger. They can also be partial ownership
Another useful statistic. This is room are primarily the costs of Hotels used different methods to or a working agreement.
obtained by dividing the total room housekeeping such as maid wages, linen, avoid overbooking & reduce the no-show
laundry, & supplies. factor.
 Module 1: BASIC CONCEPT AND • Automation B. Source
OVERVIEW OF SUPPLY CHAIN • Customer satisfaction C. Make Module 3: Making and Delivery
MANAGEMENT • Compatibility with new D. Deliver Make
Supply Chain is a network between technologies PLAN • Product Design
a company and its suppliers to produce and Forecasting • Product Scheduling
distribute a specific product to the final Function of SCM • Supply • Facility Management
buyer; it includes different activities, • Strategic level • Demand
people, entities, information, and • Tactical level • Product Characteristics PRODUCT DESIGN
resources. • Operational level • Competition A. EMPATHIZE
Essential Features of SCM Factors Affecting Supply Chain in the Aggregate Planning B. DEFINE
• Integrated behavior Hospitality Industry • Use production capacity C. IDEATE
• Mutually sharing information A. Customers are “GOD.” to meet demand D. PROTOTYPE
• Mutually sharing channel risk and B. Management systems • Use varying levels of total E. TEST
rewards • Management company production quality
• Cooperation • Franchise • Use Inventory and work- PRODUCT SCHEDULING
• Focus on serving customers • Chain of hotels in-progress inventory • High Utilization Rates
• Integration processes • Family-owned hotels Product Pricing Planning • Low Levels of Inventory
• Partners to build and maintain C. Computerized property • Seasonal pricing • High Levels of Customer Service
long term relationship management systems • Penetration pricing
• Skimming pricing FACILITY MANAGEMENT
BENEFITS OF SCM SCM in Software Inventory Management Plan • The Role of Each Facility Will Play
• Builds stronger partnerships and A. Vertically Integrated • Cycle Inventory • How Capacity is Allocated in Each
• Support with clients Partnerships • Safety Inventory Facility
•Provides better distribution B. Procurement • Seasonal Inventory • The Allocation of Suppliers and
process with less delay for C. Inventory control Markets to Each Facility
demanded good and services D. Logistics Source
• Increases efficiency and functions E. Product Lifecycle Management Procurement DELIVER
for companies F. Preferential Pricing & Load-Times - Purchasing A. Rules of Order Management
• Lowers shipping and warehouse G. Demand Management - Consumption B. Delivery Scheduling
costs Management C. Sources of Delivery
• Eliminates costs directly and Challenges of Hospitality Industry Related - Vendor Selection D. Return Processing
implicitly to SCM - Contract Negotiation
• Raw Material Costs - Contract management A. Rules of Order Management
Benefits of Mobile Apps in Supply Chain • Material Ordering Costs • Enter the Order Once and Only
Management • Inventory Handling Credit and Collections Once
• Fast delivery • Emergency Purchases - Set Credit Policy • Automated Order Routing
• Inventory accuracy and control - Implement Credit and • Make Order Status Visible
• Improve workforce productivity Module 2: Planning and Sourcing Collection Procedure • Use integrated Order
• Real-time information flow - Manage Credit Risks Management Systems
• Cost optimization SCM Types of Operations B. Delivery Scheduling
• Data driven decision making A. Plan • Direct Deliveries
 • Milk Run Deliveries - Align supply chain performance metrics Development of Supply Chain Strategy
C. Source of Delivery with the corporate strategy Technology Decision • Customer Requirements
• Single-Product Locations - Structure your supply chain to optimize • Using mobile sensors to capture data • Internal Capabilities
• Distribution Centers the strategic goals • Point-of-sale terminals and location • Supply Chain Trends
D. Return Processing - Align end to end incentives aware smart devices Development of Supply Chain Strategy
• Login - Keep refreshing the strategy and • Vast number of portable barcode • Competitive Analysis
• Click “my order” alignment process readers • Supply Chain Technology
• Click “return items” • Transportation operations • Risk assessment in Supply Chain
• Select item Module 5: Technology in SCM operation • New Supply Chain Capabilities
• Select pick up services Technology in Supply Chain Integration of Technology in SCM Supply Chain Appraisal Framework
• Waiting for pick up • Increased control and quality standards • Tracking of goods in transport and A. Review Supply Chain Strategy
• Item received of suppliers due to close partnerships, logistics Inputs
• Return improved communication and cooperation • Mobile field workers/technicians (customer requirements, internal
between supply chain members • Internet of mobile things assessment, competitive analysis, supply
Module 4: DRIVERS AND PARTICIPANTS OF • Greater operation streamlining, faster • Mobile supply chain management chain trends, technologies & risks)
SUPPLY CHAIN MANAGEMENT lead times and refurbishment, and • Inventory management B. Document New Supply Chain
Supply Chain Major Drivers improved preparation for and use of Capabilities
- Production ( what, how, and when to facilities SCM in the 4th Industrial Revolution C. Reduce Number of Capabilities
produce) •Improved coordination and collaboration 4.0 - 4th Revolution ( cyber physical & Initiatives (using estimated costs,
- Inventory ( how much to make and how among supply chain participants, system) benefits and complexity & risks)
much to stock ) contributing to enhanced designs of 3.0 – 3rd Revolution ( electronic and IT D. Establish Supply Chain Goals
- Location/Facility ( where best to do what products and processes system automation) (using metrics related to customer service
activity ) • Quicker consumer reaction and better 2.0 – 2nd Revolution ( mass production levels, cost, inventory & working capital)
- Transportation ( when and how to move delivery and electricity) E. Quantify New Supply Chain
product ) • Increased precision of forecasts, 1.0 – 1st Revolution ( mechanization, Capabilities & Initiatives (Using impact on
- Information ( basis forecasting these preparation and arranging steam and water power) service levels, cost, inventory & working
decisions) • Improved production and response to capital, implementation costs, complexity &
changes in demand Supply Chain is All About Customer risk, and ROI)
Participants in Supply Chain • Significant decrease in inventory across • The Need for Agility F. Establish Supply Chain Strategy
A. Producers the whole chain • Supply Chain Management and the Project Plan
B. Distributors Cloud System Development of Supply Chain Strategy
C. Retailers Mobile Technology In SCM • Traceability, Repudiation, and Trust with • Supply Chain Organization.
D. Customers A. Warehouse Management Systems Block chain People and Performance Indicators
E. Service Providers B. Retail Distribution Systems • Business Case and Buy In
C. Shelf Management Module 6: SCM STRATEGY Obstacle
Aligning the Supply Chain with Business D. Shop Floor Systems Supply Chain Management Strategy • Vision Barrier
Strategy E. Consumer Service Systems A. Product Development • Political and Functional Barrier
- Define and communicate a clear F. Mobile Point of Sales (MPOS) B. Customers • Management Barrier
corporate strategy C. Manufacturing • People Barrier
- Identify the areas of corporate strategy D. Suppliers • Resource Barrier
that are enabled by the supply chain E. Logistics • Connectivity Barrier
• Supply Chain Strategy Execution