HOSPITALITY AND LEISURE Essay

Submitted By SushantChaudhary
Words: 550
Pages: 3

HOSPITALITY AND LEISURE

2007: 48,000 PROPERTIES WITH 4.5 MILLION ROOMS, 2 BILLION PERSON TRIPS 50 MILES OR MORE
(44% business travel, 56% leisure)

Development Characteristics and Trends: segmented by price, location, amenities

Decentralized in mid 20th century with automobiles and suburbanization; clustered at transportation nodes, medical centers, business parks; CBD development increasingly mixed use
Full-scale vs. Limited Service (“budget”); Premium vs. Select Service
Convention Hotels: 400 rooms or more with meeting facilities (International Association of Conference Centers guidelines)
Training and continuing education: 52%
Management planning: 26%
Professional & technical meetings: 9%
Sales meetings: 8.2%
All-Suite properties
Extended-stay hotels: one week or more
Boutique or specialty; urban, upscale, “independent”
Resorts, new entertainment and outlet venues; often branded
Timeshares vs. fractional ownership and condominium hotels: deeded ownership with resale liquidity but highly cyclical with credit conditions
Repositioning/ Redevelopment
Fluctuations in demand are the most frequent market analysis oversights: Easy to overestimate and underestimate demand

Demand drivers highly variable: price, location, amenities and services
Unique local conditions and trends
Multiple revenue generators: meeting and event facilities, restaurants, retail
Labor-intensive: control fixed and variable costs while improving revenues
Household demographics not central to analysis: local supply vs. regional, national and global demand
Brand name and visibility can change market segment
Domestic and International travel highly cyclical
Shifts in economic bases
Shifts in transportation, technology and consumer preferences (e.g. shifting gender preferences, free independent traveler)
Internet has reduced travel agents (35% internet)
Competitive properties
Seasonality; occupancy varies greatly
On-the-ground fieldwork required
Interviews: convention bureaus, professional and government entities, corporate travel managers

DEMAND DEGMENTS AND METRICS
Demand Segments:
Purpose of trip: Business, SMERF, leisure
Seasonality
Length of stay
Price sensitivity
Number of rooms required
Contract demand
Facilities and amenities required; Intangibles

Market Analysis Objectives and Demand Metrics: Identify current underserved market demand or new demand
Demonstrated demand: existing occupancy at existing hotels
Unaccommodated demand: demand that must use capacity outside market area
Created demand: new segment in market area

Market Performance Metrics: Only type of property rented…