Relationship in the Hotel Industry
Excess capacity represents a loss of business, while undersold rooms represent a loss of revenue (the property could have charged more for the rooms that were rented for the night). Periods of shortages cannot be covered by selling additional rooms in the future (Whithiam, 1989, p. 10).

In order to maximize profits, hoteliers have developed specific products to meet the needs of particular niche markets. Some markets are served by all-suite hotels that cater to business travelers; other properties use a discount approach to bring in one-night travelers. Some properties appeal to families, while others seek to attract singles or couples. Some hotels serve airport areas, while others are located near convention centers and market to groups almost exclusively.

Motels are usually one or two stories and offer limited food service. These facilities are designed for family travelers and not for extended stays. Hotels are multistory buildings that include a coffee shop, lounge, room service, convenience shops, and banquet facilities. Resorts generally offer a vacation atmosphere with extensive recreational facilities for special interests, such as golf or tennis (Buttle, 1986, p. 13).

More than transient hotels or motels, resorts depend on a high level of personal service to bring guests into the property for the first time, and to have them return to the property later. Computer systems are available which can offer strong yield manage

 

Resorts generally have higher room rates than other properties located in the same area (Gee, 1988, p. 217). Quality service at resorts often begins with the reservation process, which may include interaction with travel agents and tour operations, who generally account for approximately 20 percent of a resort's business, so careful and regular contact will be made with such agencies (Gee, 1988, p. 272). Resorts generally also have a computerized reservation system which not only provides accurate room information, but which can be integrated with the property's main computer system in order to provide guest history information. In this way, guests who have already stayed at the property can be marketed to for future stays since return business is a cornerstone of the property's success.

Beyond the luxury hotel chains, there are individual properties which use quality, service and exclusivity to set prices that exceed $1,000 per night. The Governor(s Suite at the Fontainebleau Hilton in Miami Beach has a rate of $5,000 per night and features 20,000 square feet with four bedrooms, five bathrooms, a kitchen, a dining room, living room and billiard room. There is a panoramic view of the Atlantic Ocean and Miami, and the suite features marble floors, bronze statues and crystal chandeliers. The suite has an occupancy rate of 62 percent (Baum & Wolchuk, 1992, p. 56).

Premium properties, whether targeting the leisure traveler or the business traveler, are also likely to feature a complete workout area with equipment and free weights; as the room rate increases, the amenities associated with the workout area may well increase to include an on-site masseuse (available to guests for a fee), a personal trainer, sauna, steam room and Jacuzzi in addition to a full-sized swimming pool and a lap pool.

There are other suites around the world that command thousands of dollars per room night. The target market for these suites are the wealthiest travelers, and the percei

 
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    Sheraton Hilton | Hotel Industry | Broadway York | Quality Resorts | Cundiff Govoni | Sheratons Hiltons | Embassy Suites | Business Pricing | Club Med | Introduction Developing | hotel industry | pricing strategies | level quality | personal service | garvin 1988 | pricing strategy | perceived quality | quality management | life cycle | definitions quality | product life cycle | baum wolchuk 1992 | cundiff govoni 1980 | quality hotel industry | hotel industry properties |  
   
 
 
 
   
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