Chapter 3 Questions Lodging

Drawbacks to the Franchise Company

-The need to be very careful in the selection of franchisees -Difficulty maintaining control of standards

Currently, some motels are made of modular construction and have as few as ______ employees per 100 guest rooms at significant cost savings.

11

Of the more than 60,000 properties the AAA inspects and rates annually, less than ______ percent have earned the coveted five-diamond award.

21

Lighting can account for _________ percent of the energy consumption at a lodging property, leading many properties to look at measures to reduce consumption.

30 to 40

Define franchising.

A concept that allows a company to expand quickly by allowing qualified people to use systems, marketing, and purchasing power of the franchiser.

Airport hotels

Airport hotels have high occupancy, are 200-600-room full-service establishments. Guests are a mix of business and leisure travelers.

Bed and Breakfast Inns

Bed and breakfast inns offer overnight lodging in a private home. Breakfast is provided.

Fairmont Hotels is a leading travel provider and recognizes the importance of a healthy environment. The focus of the company's sustainable practices is called the ________.

Green Partnership

What makes the Giraffe Manor Hotel in Kenya so unique?

Guest are encouraged to interact with the giraffes and become familiar with them.

Drawbacks to the franchisee

High fees, both to join & ongoing. Central reservations generally producing between 17 and 26 percent of reservations. Franchisee must conform to the franchisor's agreement. Franchisees must maintain all standards set by the franchisor.

How do massive trading blocs impact the tourism industry?

Massive trading blocs impact the tourism industry by increasing the demand for hotel accommodations as travel, tourism, commerce, and industry increase.

What are real estate investment trust and why might they appeal to investors?

Real estate investment trust are companies that own or finance income-producing real estate, and they appeal to investors because they are publicly traded, making them easy into or out of.

The first hotel to be franchised in the United States occurred in 1907 when this company franchised the ___________ hotel.

Ritz-Carlton

Which two hotel chains are generally rated the highest in quality?

Ritz-Carlton and Four Seasons

Which main factor changed the nature of the hotel industry? What impact does it have today?

The main factor that changed the nature of the hotel industry was franchising. With franchising more opportunities are created for developing & operating hotels.

What are the reasons for purchasing time-shares?

The reasons for purchasing time-shares include the opportunity to purchase fully furnished vacation accommodations, ability to determine the length of ownership, and a wide range of amenities.

Define management contacts.

They involve little or no up-front financing or equity. After construction, the hotel company sells the property to a large insurance or finance company and keeps a contract to operate the hotel.

Fairmont Hotels and Resorts is a global leader in sustainable lodging, and their main program is the Green Partnership, designed to employ sustainable and responsible practices at both the corporate and individual property levels. Using the Fairmont Hotels and Resorts as inspiration, describe some steps that individual hotels can take to become more sustainable.

They should look into and try to incorporate as much as possible the sustainability partnership program the Fairmont Hotels & Resorts have put into place. 1. The first is responsible business in which they will follow environmental legislation as well as looking at local environmental issues before building. 2. Look at the ecosystem of the area in which you are wanting to build on and look at the impact it would have on for the immediate time and the future impacts that your hotel may have years to come. 3. Look at ways to reduce the hotel's environmental impact by putting in practices in every aspect of the hotel to reduce energy, water, and waste. 4. Education- train your staff of ways to make your hotel to be environmental friendly as well as your customers.

A real estate investment trust is appealing to investors because they are easier to get into or out of than other types of ownership and ____________.

They trade as stocks

The AAA could rate a hotel with very good roadside appeal, a lobby with a spacious front desk, live plants, luggage carts and a bell station, and guest rooms that reflect the current industry standards as _____ diamond(s).

Three

The Chinese market continues to grow and expand at a rapid pace and hotel chains are beginning to turn their focus to these types of cities.

Tier 2 and Tier 3

VRBO is a(n) ___________ with more than one million places to stay around the world.

Vacation Rental organization

Explain the hotel industry's opportunities in China.

With the largest population in the world, China offers the following opportunities for the hotel industry, which include a growing middle class, an increase in both domestic and international tourism, and a rising demand for luxury goods.

The largest chain of franchised or managed contract hotels is __________.

Wyndham Worldwide

Explain AAA rating system.

The AAA system evaluates and rates hotels, awarding rankings from one diamond(simple roadside appeal/meets basic needs) up to five diamond(highest service levels, sophistication, and offerings). The five diamond rating is one of the most difficult to earn.

This Fairmont property completed a lighting retrofit program that resulted in an annual cost savings of $130,000 and an energy savings of 532,000 kWh.

The Fairmont Orchid, Hawaii

This hotel is the only hotel to have received the Malcolm Baldrige National Quality Award two times and is consistently rated as one of the best luxury hotel chains in the industry.

The Ritz-Carlton

If approved, the Trans-Pacific Partnership would govern nearly 50 percent of the United States' _______________.

imports and exports

There are many benefits to franchising a hotel except for ______________.

increased market share and recognition

Hotel companies are opting for management contracts over ownership because __________.

less capital is tied up with management compared to owning properties

The international development of hotels has continued to grow as international tourism and commerce have increased. Hong Kong is an example of this growth due to the booming Chinese economy along with ________.

low corporate taxation and minimal bureaucratic difficulty

An all-suite extended-stay hotel offers ___________.

more space, which is usually a kitchenette and lounge area

The two major challenges presented to the franchisor of hotels are ____________.

the avoidance of financial failure by the franchisee and the ability to maintain quality standards

Difficulty in maintaining control of standards as well as the need to be very careful in the selection of potential franchisees is an example of _____________.

the drawbacks that the franchise company can experience

Resort hotels

typically set in remote locations. Guests patronize them for leisure, recreation, and a good climate and stay for days at a time.

Fairmont Hotels Green Partnership projects fall into one of three areas, minimize the company's impact on the environment by making ongoing improvements, follow best practices, and ________________.

work at a corporate level to develop high profile partnerships that promote environmental issues and share the message of being a good steward of the planet

The characteristics of a five-diamond property as described by the AAA are ______.

excellent curb appeal, outstanding service and amenities, and super comfortable bed and upscale furnishings along with room service, multiple restaurants, and flat screen televisions.

Freeway Hotels

Freeway hotels and motels have few frills, but allow guests to park outside the room and are located near off ramps on the outskirts of towns and cities.

Full-service Hotels

Full-service hotels offer a wide range of facilities, services, and amenities, including multiple food and beverage outlets and meeting, convention, and catering services.

A hotel that wishes to implement more sustainable practices would NOT implement this practice.

Installing high-wattage lighting for signs and décor

Benefits of franchising

A set of plans & specicications from which to build. National advertising. Centralized reservation system. Participation in volume doscounts for purchasing firnishing, foxyires, and equiptment. Listing in the franchisor's dorectory. Low-fee percentage charhed by credit card companies.

This hotel, located in a wild animal park in Kenya, is known for this unique feature.

It is built in the tops of trees.

Guests staying at a resort are a(n) ____________ clientele because of the remoteness of many resorts.

Captured

VRBO is a(n) ___________ with more than one million places to stay around the world.

City Center Hotel

A hotel with a price range of $69-$135 per night that offers limited service and is located near a city center, airport, or suburban area is an example of a(n) ___________ hotel.

Economy

Economy/budget Hotels

Economy/budget hotels offer clean, reasonably sized, and furnished rooms without the frills.

Extended stay Hotels

Extended stay hotels provide a reduced rate to guests who stay long-term. Travelers are typically business people and relocating families.

Describe an unusual hotel.

Ice Hotel, which is located in the Swedish Lapland and is built from scratch every year.

This hotel, located on the shores of the Torne River, is built from scratch every year and features a chapel, an Absolut Bar, and a cinema. This hotel is the _____.

Ice House

Benefits to the franchise company.

Increased market share & recognition. Up-front fees.

What is the largest hotel in the world?

Mecca Clock Tower, in Saudi Arabia.

City Center Hotels

Meet the needs of business and leisure travelers. They can be luxury, mid scale, business, suites, economy, or residential. Generally, they offer a signature restaurant, coffee shop, bar, meeting & convention rooms, and a ballroom.

Describe how the Fairmont plans to combat climate change.

by reducing carbon dioxide emissions by 20 percent while educating and encouraging suppliers to provide supplies in accordance with the Green Procurement Policy and Supplier Code of Conduct.

What makes a hotel unusual?

offers guests a once in a lifetime experience such as staying in a building built on the side of a mountain, dining with rare animals, or residing in a hotel rebuilt each year because of ice melting.