Handout 1

OVERVIEW OF THE ACCOMMODATION INDUSTRY

The Accommodation Industry

The hospitality industry can be defined as the collection of businesses providing accommodation and/or food and beverages to people away from home, whether for a long or short time. The accommodation sector is part of the hospitality industry concerned with providing customers with a temporary place to stay. At the same time, the hospitality industry is a part of a larger group of economic activities referred to as tourism.

Below are some of the characteristics of the tourism and hospitality industry:

Services are primarily intangible. It means guests cannot test a room for a night to check if it is okay or have a taste test before dining to know if the food is delicious. Products are exclusively for guests and not for possession.

Services are primarily perishable. It means that if a guestroom is not rented on a specific date, the revenue for that room is lost forever. Similarly, an unsold seat on a particular flight has lost the chance of being added to the airline's revenue. It is a characteristic of products and services that do not allow the product or service to be stored for sale at a future date.

Manufacture and sales are inseparable. It means a room cannot be sold anywhere, just like tangible goods. It can only be sold and used simultaneously in its exact location, not elsewhere. In other words, it is impossible to separate the supply or production of the service from its consumption.

The operating process is repetitive. Most of the processes in the accommodation industry are routine. For instance, how a room is prepared for a particular guest is the same as how it will be prepared for the next guest.

Classifications of Hotels

The development of accommodation has typically accompanied the growth of resorts, areas of tourism activity, and the demand to visit specific areas. Accommodation assumes many forms, and not all of them can fit the conventional image of a hotel. A hotel is an establishment offering sleeping accommodations to anyone willing to pay a reasonable sum for the services and facilities provided. According to the Department of Tourism, a hotel is defined as a building, edifice, or premises, or a completely independent part thereof, which is used for the regular reception, accommodation, or lodging of travelers and tourists and the provision of services incidental thereto for a fee.

Hotels can be classified in various ways. In the Philippines, the Department of Tourism implements the National Accommodation Standards for Hotels, Resorts, and Apartment Hotels using the Star Grading System to classify accommodation enterprises. It is a points-based rating system that includes five levels of accommodation standards-from one to five stars-applicable to hotels, resorts, and apartment hotels. The star bands for hotels, resorts, and apartment hotels are as follows:

One Star: These enterprises appeal to budget-minded travelers. These offer a limited range of facilities and services.

Two Star: These enterprises appeal to tourists seeking more than basic accommodation. These offer expanded facilities and a higher level of comfort.

Three Star: These enterprises offer a very good level of accommodation. These have more spacious public areas, higher quality facilities, and a greater range of services.

Four Star: These enterprises are upscale in all areas. Accommodation is refined and stylish. Service is responsive, often including an extensive array of facilities.

Five Star: These enterprises reflect the characteristics of luxury and sophistication. The facilities are world-class in every manner, and the meticulous service exceeds all guest expectations.

To obtain higher stars, progressively higher service and facility quality, facility condition, and improved business practices like environmental management should be provided across all business areas to garner higher points.

Hotels can also be classified according to their location, target market, size or the number of rooms, level of service, and guests' length of stay.