conrad n. hilton - · pdf filevideo, ch. 2 instructor’s resource cd, ch. 2...

CHAPTER OVERVIEWChapter 2 introduces the widearray of hospitality facilities,including hotels, motels, bedand breakfasts, conference cen-ters, resorts, and restaurants.

Lesson 2.1Hotels and MotelsThis lesson defines the differenttypes of hotels and motels and emphasizes the advantagesfor each type of lodging establishment.

Lesson 2.2Bed and BreakfastsThis lesson describes a bed andbreakfast and how it differs fromother lodging establishments.

Lesson 2.3Conference Centers andResortsThis lesson describes a confer-ence center and explains themain principles of resort lodging.

Lesson 2.4RestaurantsThis lesson differentiates amongdifferent types of restaurantsand gives reasons for the growthof the restaurant industry.

Lesson 2.5TourismThis lesson describes the finan-cial importance of tourism andidentifies reasons for theincrease in international tourism.

TEACHING RESOURCESVideo, Ch. 2Instructor’s Resource CD, Ch. 2 ExamView® Pro CD, Ch. 2

WINNING STRATEGIESEmphasize how successfulentrepreneurs take advantage ofmarket opportunities.

Think Critically1. Answers will vary. Possiblecharacteristics include ambi-tious, energetic, creative, nego-tiator, and enthusiastic.2. Hilton bought distressedhotels at low prices and soldthem for a profit.

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CONRAD N. HILTON

Conrad N. Hilton was born in San Antonio, New MexicoTerritory, in 1887, the son of the owner of a general store.

During the financial panic of 1907, the Hilton home became amodest inn. Each night Conrad went to the train station to attractbusiness. Weary travelers got a clean room, meals cooked byConrad’s mother, and good hospitality for $1 per night.

After the death of his father and service in the Army inWorld War I, Hilton took his $5,000 savings and inheritance toTexas in 1919, intending to buy a bank. The deal fell through,but Hilton was amazed by the many oil workers looking forrooms in the Mobley Hotel of Cisco, Texas. Hilton purchasedthe hotel with his savings, help from friends, and a bank loan.From this run-down property, Hilton built the Hilton Hotelchain into a world-renowned hospitality company.

During the Great Depression of the 1930s, 80% of hotelswent bankrupt. Hilton lost three of his eight hotels and went$500,000 into debt. He survived hard times by buying dis-tressed hotels at low prices and selling them at a profit. Hiltonacquired famous properties such as the Waldorf-Astoria andthe Plaza in New York City, the Stevens in Chicago, and theSir Francis Drake in San Francisco. His empire grew. The300-room Caribe Hilton in San Juan, Puerto Rico launchedHilton’s international operations in 1949.

Hilton was an enthusiastic deal maker who studied proper-ties carefully. Side businesses led him into early forms of thecredit card industry. Successful and famous, Hilton led acelebrity lifestyle and authored a book about his career, BeMy Guest, in 1957. He died in 1979.

THINK CRITICALLY1. Name three entrepreneurial characteristics possessed by

Conrad Hilton.2. How did Hilton creatively change his business when hotels

were failing everywhere?

FULL-SERVICE HOTELSHotels are multistoried lodging facilities that range in size

from a limited number of rooms to hundreds of rooms.Quality of hotels varies widely with price, location, and age.A full-service hotel provides a wide range of services,usually including a restaurant and bar on the premises,

retail shops, luggage assistance,parking lot attendants, roomservice, and other amenitiessuch as dry cleaning. Businesstravelers and convention atten-dees make up the largest per-centage of hotel guests.

The growth and lower rates of limited-service hotels have chal-lenged full-service hotels to offer attractive extras to guests.Many hotels offer suites packedwith exercise equipment andother trendy items, such as calming fountains and massagechairs. Fitful sleepers can getearplugs or sound boxes thatsimulate heartbeats, blackoutdrapes, or even the BioBriteSunrise Clock, a device that

TYPES OF HOSPITALITY MARKETS

HOTELS AND MOTELS

SCHEDULEBlock 45 minutesRegular 1 class period

FOCUSAsk students to give threeexamples of different lodgingbusinesses and what they offer.

CHECK INHave students tell about theirhotel or motel experiences. Besure to highlight good and badexperiences.

Answers for Check InCooperative LearningAnswers will vary. Things thatmake a hotel stay pleasurablemight include good service, cleanroom, fair prices, and friendlyatmosphere. Things that mightdisqualify a lodging from futurebusiness include dirty room, poorservice, and unrealistic prices.

Remember the last time you went on vacation? The hotel ormotel probably played a large role in the success or failureof your trip. Consumer expectations have risen for the

hospitality industry. As competitive businesses that must keepup with the latest trends, the hotel industry looks for ways toexpand service. Reserving a hotel room, for example, hasbecome easier than ever. You can call an 800 number, use theInternet, use a travel agent, or dial the hotel directly.

With a partner or in a group, compile a list of things that makean experience at a hotel a pleasure. Make another list of thingsthat will disqualify a lodging from getting your future business.

Define differencesamong hotel andmotel types.

List advantages thateach type of hotel or motel has in itsparticular business.

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LESSON 2.1

PRODUCT/SERVICE

MANAGEMENT

brightens slowly to simulate sunrise. High-quality, brand-name supplies and ameni-ties, from mattresses and mattress coversto designer soaps and lotions, havebecome standard.

Many hotels offer high-speed Internetaccess. Marriott International has about300 hotels worldwide wired for high-speedaccess and plans to have an additional200 hotels online by the end of 2001.Hilton Hotels, Radisson Hotels, andChoice Hotels also plan high-speedaccess in rooms. The Adam’s Mark Hotelin Dallas is offering wireless Web accessto business guests who use its meetingrooms.

The number of business trips includingchildren grew 32 percent between 1997and 1998, so Holiday Inn started offeringkids’ suites for $115. The rates for theserooms, furnished with bunk beds, Legoplay table, and Nintendo, are slightly lowerthan normal. Even some luxury hotelsoffer amenities for children.

An increasing number of hotels acceptguests with pets. Hotels usually have rulesto keep pets and owners controlled. Thecheaper the room, the greater the likeli-hood of paying an additional fee rangingfrom $5 to $25 a night to cover cleanupcosts, or placing a security deposit as ahedge against damages.

AIRPORT HOTELSHotels located near airports have oftenhad a reputation for dowdiness and poorservice. Recently, millions of dollars havebeen spent on upgrades. Airy, earth-tonedrooms priced from $85 a night contain well-stocked mini bars and fea-tures such as spas, dataports, and triple-glazed windows to keep outnoise. Weekend rooms often run half the cost of city-center hotels.Airport hotels provide handy accommodations for travelers with earlymorning flights. Consumers can get a night’s sleep—and might saveeven more by avoiding airport parking lots.

UNIVERSITY HOTELSMajor universities conduct studies to determine whether hotel/conventioncenters are good for their campuses. Mixed-use hotel and retail confer-ence complexes provide major universities with first-class hotels com-plete with conference amenities such as bookstores, public atriums, anda diverse range of retail/entertainment shops and restaurants.

2.1 HOTELS AND MOTELS

TEACHIt is important to understand thewide array of lodging options.Examples of lodging institutionsfor each category covered in thislesson will give students a betterunderstanding. Many studentsdo not understand a full-servicehotel lodging experience. A fieldtrip to or guest speaker from afull-service hotel can helpexplain all the extras offered bythis type of hotel. Specialemphasis should be given to thelatest technology offered by full-service hotels.

Cyber MarketingAsk students why hotels mustkeep up with the latest trendsand introduce new technologiesto keep their share of business.

Think Critically1. Business and leisure travel-ers depend on the latest tech-nology when traveling. 2. Answers will vary. An exam-ple might be a virtual workoutroom that makes guests feel likethey are exercising outdoors.

TEACHPlace or location is an importantmarketing concept. Lodgingestablishments located near air-ports reach a target market thatdesires a good night’s sleepbefore a trip, free parking duringthe trip, and convenience formeetings that require people tofly into a city. The price chargedat these hotels is a major factor.

University hotels and conventioncenters are financially favorablefor some schools, especiallywhen those institutions offer ahospitality major.

The lodging industry involvesmatching facilities with individualcustomer needs. All types oflodging institutions have becomecompetitors.

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As business travelersuse the Internet moreand more, plugged-inhotels make some formof access one of theiramenities. The CenturyPlaza Hotel in LosAngeles has just theroom for demanding,cyber-savvy travelers.The Cyber Suite, com-plete with voice-activated“butler,” virtual-realityheadgear, and access tothe Internet via NetTVthrough a wireless key-board, goes for $2,000 a night.

THINK CRITICALLY1. Why do hotels find itimportant to have thelatest technology avail-able in rooms?2. Suggest an exampleof a future technologicaladvancement for hotelrooms.

2 TYPES OF HOSPITALITY MARKETS

CHANGES ON THE HORIZONThe last decade has seen the expansion and affiliation ofmany major hotel chains. Summerfield Suites Hotels nowfranchises its concept, as does Hyatt Hotels Corporation.Although franchise operations expand market penetration,they carry a potential risk if individual franchises fail to live

up to standards set by parent companies.New ideas in customer service will continue at a breathtaking pace.

Marriott is in the process of opening 30 upscale full-service GourmetBean coffee outlets right in its hotels. New ideas in food service will gofurther, as will luxury amenities in rooms. Some hotels have begun tomaintain guest “profiles” to customize rooms for individual tastes.

MOTELS AND MOTOR INNSMotels are lodging facilities usually found on feeder highways and

roads, or along lesser-known routes. Motels are usually one-storystructures, with parking in front of or near the room. Most motels do nothave restaurants, and the owner provides all services.

The term motel comes from “motor hotel.” The invention of the auto-mobile helped the hotel industry become a booming business in the1920s. Landowners along major routes built wooden 10-foot by 10-footcabins easily accessible to weary travelers who could park their cars infront. Owners soon expanded their operations to 15 or more cabinsreferred to as tourist courts.

In the 1930s, the GreatDepression devastated thelodging industry. Many smallermotels went bankrupt, and theindustry did not revive untilafter World War II. During thewar, troops being transported,workers being transferred tovarious factories, and familiesreuniting presented opportuni-ties for new hotels built nearmajor military bases and indus-trial areas.

At the end of the war, airtravel became available to

TEACHMajor hotel and motel chainshave diversified the lodgingoptions they offer. Marriott hasfull-service hotels, suites, andextended-stay options.

Upscale shops and amenitiesare used to attract business.Customer profiles allow a lodginginstitution to monitor and adjustto the needs of individual guests.Luxury hotels have felt the com-petitive pressure from othertypes of lodging establishments.

Ongoing AssessmentUse the Confirmation as anopportunity to conduct ongoingassessment of student compre-hension of the lesson material.

TEACHHistory of the lodging industry isinterrelated to inventions in thefield of transportation and histor-ical events in the United States.The invention of the automobileopened opportunities for themotor hotel, referred to as amotel. Land owners built cabinsfor weary travelers. TheDepression meant failure formany motels, but World War IIbrought a resurgence to theindustry. The end of the war,growth of airlines, and expan-sion of regional offices for com-panies resulted in growth for thelodging industry.

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DISTRIBUTION

What special or unique amenities do full-service hotels offer?

Amenities include restaurant, retail shops, luggage service, parking lot attendants,

dry cleaning, and room service.

larger numbers of people. Thegrowing postwar economy sawcompanies expand with branchand regional offices, and con-ventions and conferencesoffered opportunity to the hospi-tality industry. Vast numbers ofbusiness travelers became themost important customers, butpeople also traveled more forpleasure as they had more dis-posable income after the war.

Motor inns are the most com-mon lodging facilities found inthe United States. Motor inns areusually located near major high-ways and the interstate highwaysystem, often clustered withother inns. Motor inns rangefrom two to six stories, and usu-ally have a restaurant or bar.Motor inns are becoming hard todistinguish from hotels, offeringbellhops, room service, andincreasing amenities. Motor inns located near airports arepopular for meeting and conven-tion business. Holiday Inn andComfort Inn are examples ofmotor inns.

The Superior Small Lodging(SSL) Association is an organi-zation that attempts to ensuretourists receive great value andhigh-quality accommodations atmember properties. Membersinclude small motels, inns, and bed and breakfasts. This organizationhelps members by associating with Convention and Visitors Bureaus,Chambers of Commerce, and Tourism Destination Organizations. Motelsand motor inns have improved their operations, improved their relation-ships with customers, and become more effective in competing with otherhotels and inns.


TEACHMotor inns are very common inthe United States. These estab-lishments have become increas-ingly competitive with hotelsbecause they are offering moreamenities than just a restaurantor bar. The Superior SmallLodging Association keepsscore on how motor inns areperforming. Guest satisfactionequals repeat business.

Judgment CallOften, things that appear to becomplimentary are being paid forby the guest. What seems to be acomplimentary newspaper, break-fast, or happy hour may actuallybe charged to the customer.

Think Critically1. Answers will vary. It is unethi-cal to advertise “free” when afee is actually being charged.2. Other hidden costs mayoccur from complimentary break-fast, happy hour, or shuttle serv-ice to the airport. Hiddencharges for all of these extrasinclude additional sales andlodging taxes.


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Guests at the Embassy SuitesHotel in Secaucus, New Jersey

probably think the copy of USAToday left at their door is compli-mentary. But if they squint at thefine print on their registrationforms, they’ll find that the hotel ischarging them 25 cents a day fortheir “free” paper. USA Today sellsloads of discounted bulk rate news-papers to hotels, airlines, andrestaurants—an average of 409,980daily. The hundreds of thousands ofpeople who receive the newspaperfree allow USA Today to call itself“first in daily readers,” though notin paid subscriptions. Hotel guestsare often too busy to realize thatthey are buying a newspaper thatthey think the hotel is providing for free.

THINK CRITICALLY1. Do you think it is ethical forhotels to put newspapers at guests’doors and then charge for them?Why or why not?2. What other hidden costs are aresult of increased amenities?

Explain the difference between motels and motor inns.

are one-story structures usually found on feeder highways, with parking in front or near

the room. Motor inns are located near major highways, often clustered with other inns.

TEACHTighter budgets have opened anopportunity for limited-serviceproperties and forced full-servicelodging establishments to recon-sider their marketing strategies.Suites and extended-stay facili-ties are attractive to families,business travelers, and individu-als looking for housing in a newcommunity.



LIMITED-SERVICE FACILITIESR ising full-service hotel rates have caused planners to look for meeting

sites and lodging that are easy on the budget. Growing numbers oflimited-service properties provide primarily sleeping rooms withoutexpensive amenities such as food service. Extended-stay facilities arelimited-service properties offering residential-style units with multi-roomplans and kitchen facilities to attract business travelers or those relocating.

Summerfield Suites, AmeriSuites, and Residence Inns byMarriott are examples of limited-service, extended-stay prop-erties serving the meeting market. Training that may lastweeks is now often booked at limited-service hotels nearmajor airports. Meeting rooms vary from a small bedroom to a

room with a 50-person capacity. Meeting space at limited-service hotels canbe as large as 1,250 square feet, and is comparatively inexpensive or maybe complimentary. Full-service hotels usually charge between $5 and $10per square foot for meetings. Limited-service hotels charge flat rates of $50to $150 for day meetings, frequently including morning and afternoon coffeeand soda breaks. Rates go lower when groups book sleeping rooms.

Many limited-service properties offer suites with two bedrooms and twobathrooms. Most business travelers do not like to share one-bedroomrooms. Executives, who realize that most business travelers do not like toshare rooms, can give trainees their own bedrooms and baths for $20less per night than at a full-service hotel.

ECONOMY LODGING IN TRANSITIONThe economy segment of the lodging industry faces constant change.Goals for success include a good price/value ratio and guest satisfaction.Added amenities and services result in rising room rates, and the pressureto add amenities is strong. Rates cannot exceed guests’ perception of thehotel’s value, however, for the business to stay competitive. Major econ-omy hotel chains attempt sophisticated marketing efforts. Consumersremember the “We’ll leave the light on for you” tag line that Motel 6 uses.Several chains have automated reservations system interfaces to appeal totravel agents. The bottom line for economy lodging is to offer a lot for a lit-tle. Budget Host has more than 180 inns with 7,300 guest rooms located in37 states and Canada. Amenities offered by Budget Host include king- andqueen-size beds, cable television and movie channels, complimentary cof-fee, microwaves, refrigerators, free continental breakfast, swimming pool,picnic area, suites, at-door and truck parking, and connecting rooms.

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AmericInn is anexample of a com-

pany offeringbonuses for regular

customers:• $40 for every

10 nights you stayat any AmericInn

• Free upgrade ofroom type, whenavailable

• Free newspaper• Free local calls• Free check cashing • Car rental discounts

and coupons• Oil change coupon

What are limited-service hotels? Cite examples of creativemarketing used by a limited-service hotel.

provide sleeping rooms without expensive amenities. Creative marketing strategies

have been aimed at the meeting market by offering two-bedroom suites, and lower

PRICING

rates for meeting rooms when more sleeping rooms are booked.


TEACHING STRATEGIESLimited-English-ProficiencyStudentsProvide students with transla-tions of key terms before pre-senting each type of lodgingestablishment. Provide postersthat reinforce concepts in Englishand other dominant languages.

TEACHING STRATEGIESTactile LearnersAllow students to use theInternet to locate informationabout a nationally recognizedhotel and motel. This informationshould be used to compare theamenities offered by each typeof establishment.

ASSESSReteachIn pairs, have students name thedifferent types of lodging estab-lishments and think of populartelevision commercials for each.What are the specific servicesthat each establishment is tryingto sell? What clever tag lines areused in the commercials?

EnrichAsk students to prepare a com-puter presentation that highlightsthe difference between full-service, limited-service, andextended-stay lodging establish-ments. Have students give anexample for each lodging establishment.

CLOSEIn pairs, have students use theInternet to look up a variety ofnational lodging institutions.Students will tell what type oflodging establishment eachselection is and specific informa-tion about the lodging establish-ment that they located on theInternet.

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UNDERSTAND MARKETING CONCEPTSCircle the best answer for each of the following questions.

1. Limited-service facilitiesa. cannot compete with full-service hotels for meeting facilitiesb. are rarely able to employ a sufficient number of workersc. are often the site of extended staysd. are the oldest form of lodging in the United States

2. Dramatically upgraded services and amenitiesa. are available only in full-service hotelsb. usually indicate an older lodging facilityc. are a growing trend in all forms of the hospitality industryd. rarely return the investment made on them

THINK CRITICALLYAnswer the following questions as completely as possible. If necessary,use a separate sheet of paper.

3. Communication Categories of hospitality markets are harder todefine than they once were. Why is distinguishing among hotels,motels, and motor inns more difficult than it might have beentwenty years ago?

Most lodging facilities are offering similar rooms, amenities, and technology to

guests. Competition is strong among the various types of lodging establishments,

blurring specific characteristics of the different types.

4. Technology Use the Internet to review web sites of major hotels,motels, and motor inns in your area. Which web sites do the mosteffective job of marketing their facilities? Why?

Answers will vary.

TYPES OF BED AND BREAKFASTSBed and breakfasts (B & Bs) are lodging facilities that include break-

fast in the cost of the room. This concept is common in the UnitedKingdom and is gaining popularity in the United States. In Europe it iscommon to rent a room in a single-family household. B & Bs evolvedfrom this concept of renting sleeping rooms in a home with shared com-mon space (living room, dining room, family room, and so forth).Sometimes, bathrooms are shared by several guest rooms. B & Bsbegan to appear in the United States in the late 1960s. There are nowmore than 20,000 B & Bs, an increase of 18,000 since 1979. The indus-try shows an increasing average number of rooms per property, growingoccupancy rates, and an increasing number of support services.

There are a wide variety of B & B accommodations available. B & B homestays are private, owner-occupied residences with up to

five guest rooms available to visitors. Breakfast is often the only mealserved and is included in the charge for the room.

B & B inns are commercially licensed businesses oper-ated in a building that primarily provides overnight accom-modations though the owner may live on the premises.The number of guest rooms for a B & B inn ranges from aminimum of four to a maximum of 25. Breakfast may bethe only meal served, or other meals may be available.

Country inns are commercially licensed businessesprimarily known for cuisine, usually away from commercialareas. Country inns offer overnight accommodations anda full-service breakfast and dinner to overnight guestsand/or the public. The number of guest rooms ranges froma minimum of four to a maximum of 20.


BED AND BREAKFASTS


FOCUSAsk students what comes tomind when they think of a bedand breakfast. Would they bewilling to share a bathroom ordining room with other guests?

CHECK INAsk students what they expectfrom a good hotel or motel. Whatare the advantages of a bed andbreakfast establishment?

Answers for Check InCooperative LearningAnswers will vary.

LESSON 2.2

Remember the last time you took a vacation? Did you return home from your vacation more tired than when you left?

Would you want to be served home-cooked meals or breakfastin bed? A bed and breakfast (B & B) may provide the quiet, rest-ful escape that you seek.

Work with a partner. Discuss what you think would be positivequalities of a stay at a B & B. Also discuss things that some peo-ple might not enjoy about staying at a B & B.

Define the conceptof a bed and breakfast.

Explain how bedand breakfasts differfrom other types oflodging.

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APPEAL OF A BED AND BREAKFASTKey to the success of B & Bs is that they offer an experience different

from that of other lodging. B & Bs appeal to weary travelers who desirepersonal service from consistent innkeepers as opposed toan anonymous front desk staff. B & B guests often seek arelaxing, private experience different from stays of most cor-porate travel. Repeat guests sometimes become part of theinnkeeper’s life. Successful innkeepers learn about travelers’families, their birthdays, and even their food preferences.

BED AND BREAKFASTS AND BUSINESS TRAVELERS More and more business travelers are seeking out B & Bs as an alterna-tive to the anonymity and sameness of hotels and motels. Corporateguests are sometimes hesitant about staying in an inn, but discover thataccommodations are often better than at a hotel and provide the comfortof home. A recent survey of innkeepers and B & B owners indicates thatbusiness travelers account for about half of their annual overnight stays.Corporate travelers account for a great portion of repeat business at innsthat meet their expectations.

As with other parts of the lodging industry, the key to success isincreasing amenities. Private baths are a necessity. Innkeeper JeffArchuleta, who runs Napoleon’s Retreat Bed and Breakfast in St. Louis,says that business travelers won’t even consider sharing a bath. Privatebaths, flexible cancellation policies to accommodate last-minute changesin travel plans, flexible check-in/out times to accommodate flight sched-ules, private key access so guests can come and go as they please, andpolicies prohibiting children and pets are key features for attracting busi-ness travelers. Other services and amenities desired by business travel-ers include firm mattresses, desks, private telephones, exerciseequipment, dataports, fax machines, and copy machines. Privacy is oneof the most important services an innkeeper can offer business guests.

2.2 BED AND BREAKFASTS


TEACHBed and breakfasts (B & Bs) mayappeal to travelers who want aspecial lodging experience.

The quaintness of a B & B mayattract guests; however, specialservices and amenities desiredby business travelers must begiven careful attention. Firmmattresses, desks, private tele-phones, private bathrooms,exercise equipment, dataports,fax machines, and copymachines must be incorporatedinto B & Bs for success.


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How do B & Bs differ from hotels or motor inns?

B & Bs include breakfast and possibly other meals in the cost of the room, shared

common space among guests, and private homes as possible facilities.

A successfulinnkeeper…

1. Is a people person2. Is healthy, disci-

plined, aware ofand respectful ofpersonal limita-tions and needs

3. Is attentive todetail

4. Is hardworking5. Is self-motivated6. Is a leader in the

community7. Is a motivator who

can share a visionwith others

PRODUCT/SERVICE

MANAGEMENT

Why are more business travelers opting to stay at B & Bs?

B & Bs provide a good alternative to the anonymity and sameness of hotels and

motels. B & Bs provide business travelers with the comforts of home.


ASSESSReteachHave students define a bed andbreakfast and give a good loca-tion in their city for a B & B.Students should list specialservices and amenities offeredby the B & B.

EnrichIn pairs, have students describethe perfect B & B in terms ofproduct, price, place, and promo-tion. Students will present theirinformation to class in a brochureor computer presentation.

CLOSEIn pairs, have students use theInternet to research B & Bsacross the country. What specialamenities do the B & Bs offer?Which parts of the United Stateshave the most B & Bs? Whywould these locations be goodfor B & Bs?

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1. The idea of bed and breakfast innsa. originated in the American Southb. was a response to the sameness of corporate travelc. evolved from European traditionsd. was one of Conrad Hilton’s early successes

2. B & Bs typically offera. all the facilities of a full-service hotelb. privacy, personal service, and atmospherec. dataports, exercise equipment, and fine diningd. easy access to major means of transportation


3. Technology B & Bs have made good use of the Internet as amarketing tool. Find and share web pages that you think are espe-cially appealing to potential customers. What makes the siteseffective?

Answers will vary.

4. Communication If you were opening a B & B, what would be thebasis of its appeal? Write text for a brochure for a B & B that youmight plan.

Answers will vary. The brochure should emphasize privacy, personal service,

and atmosphere. The brochure should also emphasize an alternative for the

business traveler.

CONFERENCE CENTERSAconference center is a large meeting venue surrounded by enough

hotels to accommodate multiple conventions or conferences simulta-neously. Every year, growing cities with good airport hubs discuss thepossibility of building convention or conference centers. City leaders real-ize the revenue potential from a successful conference center. Theremust be a large number of hotel rooms close to the convention center,efficient public transportation, a wide array of restaurants to accommo-date guests, and additional tourist attractions.

The elegant, award-winning Orange County Convention Center inOrlando, Florida will grow to 2.1 million square feet of exhibit space by2003. This amount of space will accommodate large shows and smallerconferences at the same time. Orlando has plans to add 23,000 addi-tional hotel rooms, increasing the inventory to 99,000 rooms. The presti-gious Peabody Orlando will build a 1,000-room, 42-story tower linked tothe Convention Center. Universal Orlando will develop hotels, a golfcourse, and a theme park on 2,000 acres of land.

Transportation, dining, and recreation are important features for a suc-cessful conference center. Orlando’s International Airport will accommo-date 70 million passengers annually by 2003. Nearly 400 restaurants inOrlando provide conference attendees with numerous dining choices.Outlet malls and an upscale Millennium Mall scheduled to open in 2004add to Orlando’s convention-center amenities.

Cleveland, Ohio may seem a less-likely place for a conference centerwhen compared to Orlando, Florida, but the Cleveland ConventionCenter advertises 20,000 hotel rooms in the greater Cleveland area with3,200 rooms downtown. The city has a good array of attractions fromprofessional sports to art museums. Rapidly growing Indianapolis has


CONFERENCE CENTERSAND RESORTS


FOCUSAsk students to give examples ofcities well equipped to be confer-ence centers and resorts. Whatdoes a city need to accommo-date major conventions?

CHECK INHave students brainstorm whatthey expect from a lodging institution and the city whenattending a district, state, ornational convention for a student organization.

Answers for Check InCooperative LearningAnswers will vary. Things thatmake a meeting site attractiveinclude entertainment, dining,special attractions, tours, favor-able climate, location near amajor airport, central location,good public transportation, andsafety.

To find the best sites at reason-able prices, look for off-peakrates, major airport with goodflight connections, negotiablegroup hotel rates, and nice con-ference center or meeting roomcapabilities.

LESSON 2.3

Think of yourself for a moment as the attendee of a busi-ness convention—not the planner. You will attend yourmeetings, of course, and you’ll want that to be accom-

plished as easily as possible. What other things do you want tosee and do or learn about in the city you are visiting?

With a partner or in a group, make a list of the things about ameeting site that make it attractive. Now consider your list fromthe point of view of a meeting planner. How can you find the bestsites for the most reasonable price?

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Define a conferencecenter.

Explain the mainprinciple of resortlodging.


hotels, restaurants, shopping centers, professional sports, and a majorairport to meet the needs of most conventions. Indianapolis andCleveland may not sound as glamorous as Orlando, but both of thesecities have what convention centers need to succeed: accessible loca-tions, transportation, hotel rooms, meeting-room space, and communityattractions to accommodate a wide array of conferences.

RESORTSResorts are hotels or motels located in popular vacation areas that

offer recreational activities related to or in addition to attractions in thearea. The resort may provide golf, horseback riding, tennis, skiing, tours,social activities, unique dining, or day trips. Resorts offer deluxe roomswith a wide range of prices. Rooms with a scenic view and more spacecommand higher prices.

Dude ranches, ski resorts, casino hotels, and health resorts are exam-ples of specialized resorts. Resorts may be chains or individually owned.Some resorts are open only “in season,” but many resorts are open year-round with indoor pools and big-name entertainment. Resorts offer pack-age deals that vary in price at different times of the year. Warm resort

areas cost more from November throughMarch. Ski resorts charge their highestrates during the winter season. The bestrates are offered by resorts during off-peak season (slow business times dur-ing the year). Major airlines may workwith resorts to offer travelers packagedeals that include the price of the flightand the hotel.

The growing senior population haschanged the focus of some resorts.Branson, Missouri has become a popu-lar resort for senior citizens to visit.Places like Phoenix, Arizona andGeorgetown, Texas offer attractiveaccommodations for senior citizens.Bingo, craft classes, light exercise ses-sions, and other social activities make

TEACHConference centers are impor-tant to city, country, and stateeconomies. Voters often deter-mine the fate of conference cen-ters by voting for or againstadditional tax dollars to pay forconference facilities. Success ofa conference center dependsupon transportation, hotelrooms, dining, and recreation.


TEACHResorts are located in popularvacation areas. Resort choicesrange from dude ranches tocasino hotels. Each type ofresort caters to a different targetmarket.

Beaches and mountains seemto be natural choices for resorts;however, rural areas may beequally attractive for countrytours of farms and dude ranchexperiences.

An aging population makesresorts in Arizona and Texasattractive in the winter. Specialactivities offered to seniorsinclude bingo, craft classes,country music shows, and othersocial activities.

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Why do city governments often work to create conferencecenters?

Meetings and tourism bring a lot of revenue to the city.

resorts fun meeting places for seniors. As Baby Boomers age, they toowill affect the nature of resort accommodations.

Condominiums (condos), when considered as a part of the lodgingindustry, are living quarters owned by private persons that are rented outto the public most of the year. Most condos are apartments in high-risebuildings located at beaches or other recreational areas. Owners con-sider condos to be good investment properties.

Timeshares involve buying a specific time period (one or two weeks)to spend at a vacation resort. The price of the timeshare depends on thetime of the year chosen. February would be a popular season in a warmresort area such as Cancun, Mexico. Timeshare owners can swap datesor property with other timeshare owners.

PUTTING YOURSELF IN THE SHOES OF THE GUESTResort and conference-center marketing is a lot more thanselling rooms. The central theme is to provide a great guestexperience. Guests don’t buy a place to stay. They buy theexpectation of a great experience. Successful marketerssee their property through the eyes of the guests. They try

to learn from guests what they really value in a resort or conference center in order to provide great experiences.

THE DISNEYLAND RESORTProbably no organization has been more successful at marketing dreamsand images than Disney. Disneyland Park was the first theme park of theDisney empire, opening in 1955. Today Disneyland is an evolving 85-acre experience featuring more than 60 attractions. The 990-roomDisneyland Hotel, with a tropical sandy beach and fine restaurants andlounges, has 120,000 square feet of convention and meeting space. Thenew Disney’s California Adventure Park was designed by Walt DisneyImagineering in the tradition of classic Disney to capture the beauty ofCalifornia on 55 acres of attractions. Disney’s Grand Californian Hotel isa luxurious 750-room hotel located within Disney’s California Adventure.Downtown Disney District is a public esplanade of theme dining, shop-ping, and family-oriented entertainment, located centrally between theDisneyland Resort theme parks and hotels.

Combined with Florida’s Walt Disney World, which includes the MagicKingdom theme park, the Epcot Center, Disney’s Animal Kingdom, andDisney-MGM Studios, Disney Enterprises continues to be a giant in theresort industry, and continues to expand with conference business, acruise line, and interests in many other businesses.

2.3 CONFERENCE CENTERS AND RESORTS

TEACHCondominiums are an invest-ment that can be rented out tothe public. This type of lodginggives travelers an opportunity tofeel more at home than at ahotel. Timeshares are availablefrom major corporations such asMarriott. Individuals buy a spe-cific time period to spend at avacation resort. The price of thetimeshare is higher when thelocation is in greater demand.For example, Florida timeshareswould cost the most during win-ter months.


35

Resort developmentdoesn’t have to gohand in hand withdestruction of the

environment.Harmony Resort,

St. John, U.S. VirginIslands has been cited

as a sustainableenergy success story by the U.S.

Department of Energy.Developer Stanley

Selengut used recy-cled materials for con-

struction andminimized damageduring building. The

resort uses onlyrenewable energy

sources, while mini-mizing water use and

waste production.

SELLING

How does a resort differ from a typical hotel?

Resorts are located in popular vacation areas and offer recreational activities in

addition to attractions in the area.


TEACHING STRATEGIESAttention Deficit DisorderStudentsA field trip to a conference centerwill clarify the material covered inthis lesson. Assign at-risk stu-dents to mentors involved in thelodging and tourism industry forthe city or area.

TEACHING STRATEGIESVisual LearnersModify presentation strategies toinclude more visual displays andsupplement explanations withcurrent, realistic examples.

ASSESSReteachIn groups, have students defineconference centers and resorts.Have the groups select a city orregion that is a good examplefor each category.

EnrichHave students select a city thatthey think would be a good con-ference center. Have studentsuse the Internet to find the quali-fying characteristics that makethe city a good conference cen-ter, emphasizing the conceptscovered in class.

CLOSETell students the number of hotelrooms rented in a city during agiven year and the average priceper room per night. If the citycharges an additional 8% lodgingtax, how much money will begenerated for special causessuch as a conference center orsports complex? Ask students ifthey would be willing to pay addi-tional taxes to support a confer-ence center in their city.

36


1. A conference center is aa. deluxe hotel or motor inn with meeting spaceb. government-financed meeting and entertainment sitec. lodging and meeting venue dependent upon climated. complex of meeting sites, lodging, and other attractions

2. The key theme of resort marketing isa. marketing the experience more than the spaceb. taking advantage of off-peak ratesc. effective use of timesharesd. presenting an economical package


3. Communication Many cities have discussed the extent to whichtax dollars should go toward conference center development. Whatis your opinion? Should taxpayers fund or partially fund develop-ments that benefit private enterprise?

Answers will vary. Conference centers create more jobs and income for local

residents. Tax dollars for conference centers may be a good investment.

4. Technology Visit the Disney web site and examine its manyattractions and options for travelers. In your opinion, why is Disneyso successful in so many hospitality venues?

Answers will vary. Disney offers entertainment and lodging options for a wide

array of market segments. Disney has something for just about everyone.

DINING OUTCompetition among restaurants gives con-

sumers endless choices for dining.Thousands of restaurants open and closeevery year. Some of the restaurants are part ofwell-recognized chains while others are inde-pendent operations. Keys to successful restau-rants include good food, appropriate prices,strong marketing, and sound public relations.

Dining out has become big business sevendays a week. Busy working families find it eas-ier to dine out or have food delivered. Look uprestaurants in the yellow pages of the tele-phone book, and you find a long list of possi-bilities. No matter what type of restaurantconsumers choose, they expect good qualityfood for the price and excellent customer serv-ice. Dining options range from reasonablypriced fast food to expensive meals served at full-service restaurants.Higher prices increase customer expectations for the dining experience.

The National Restaurant Association defines three primary types ofrestaurants. Table service, quick service, and on-site food service makeup the organization’s membership. Within these larger groups lies analmost endless variety of menus and prices.


RESTAURANTS


FOCUSAsk students to give rea-sons why people chooseto dine out so frequently.What do consumersactually want from theirdining experience? Whatare the different restau-rant options and theprices charged by eachtype of establishment?

CHECK INAsk students to giveexamples of what theyexpect from table-servicerestaurants. What per-centage of the food billshould be given as a tipfor a good sit-downmeal? Why areAmericans eating fewermeals at home?

Answers for Check InCooperative LearningAnswers will vary. Studentsshould divide their lists into finedining, casual dining, theme,ethnic, family, quick service, andon-site food service.

LESSON 2.4

Eating out has become one of the most popular socialactivities in the United States and around the world.Consumers have different expectations for different types

of restaurants; however, they expect good food at a fair pricefrom all restaurant establishments they visit.

The economic impact of the restaurant business is enormous.Americans are eating fewer and fewer meals at home, a trendthat is likely to continue. Competition is fierce for those dollars.

Work with a group. Brainstorm a list of local restaurants—anything goes, from the hamburger joint to the top of the tower.Then, to help you think more about the food-service industry,attempt to divide your list into various groups. Into what cate-gory would you put each restaurant, and why?

37

Differentiateamong differenttypes of restaurants.

Identify reasons forthe growth ofrestaurant sales.


TABLE-SERVICE RESTAURANTSTable-service restaurants, as the name implies, are thosethat serve customers personally at the table. Beyond thatlarge distinction, there are many types of table-serviceoperations.

Fine dining, or white-tablecloth service, provides thehighest levels of personal service and more choice of rare food and bev-erages in a formal or sophisticated setting. The most exclusive restau-rants almost always require reservations (if they can be had at all), andmay be noted for a particular chef, a unique location, or a long traditionof fine service. Prices for fine dining are usually high, and consumersexpect the best—whether the atmosphere is formal or trendy.

Casual dining offers a less-expensive alternative to fine dining, afriendly atmosphere, and more moderate prices. In the last twenty years,national chains such as T.G.I.Friday’s, Applebees, and Chili’s have estab-lished themselves as national leaders, but smaller chains and localestablishments attract customers in similar ways. Informal decor, acasual ambience, and a familiar and appealing menu encourage repeatbusiness. These restaurants become regular stops for many people.Casual dining establishments may lack the exhaustive wine list availableat a fine dining restaurant, but many beverages are available at reason-

able prices. Although there are less expensiverestaurants, casual dining places remain popular by selling the sociable mood as much as theirmenus.

Theme restaurants are a form of casual diningthat have also seen the growth of national chains.Many local theme restaurants exist based on suchthemes as medieval times, old-fashioned parlors,or perhaps most commonly, sports. National chainshave brought the consistency of offerings to themerestaurants as well as a distinct experience. Manycasual dining restaurants could easily be consid-ered theme restaurants as well.

Ethnic restaurants offer an even more distinctexperience, depending upon particular national orregional cuisine to draw diners. Although ethnicrestaurants vary as widely as the cultures they rep-resent, in this area, too, national chains havebegun standardizing fare. Don Pablo’s marketsMexican flavors to a wide audience, and OliveGarden attempts to convey an authentic Italiansense to its food. Restaurant critics might quibblewhether these chains offer genuine ethnic food, butthey bring a wider variety of tastes to the Americanpalate than were previously available. Prices formost ethnic restaurants, including the nationalchains, vary as well, but most fall within the samerange as casual dining. With changes in populationcharacteristics, many experts predict growth in this field.

TEACHTable-service restaurants earncustomer loyalty by servingexcellent food, ambience, andservice. A diverse populationhas opened opportunities forethnic restaurants.

Marketing MythsOne way that restaurants keepcustomers happy is by refilling teaand soft drinks for no additionalcharge. Soda is a reasonablypriced item that restaurants caneasily give out free to customers.

Think Critically1. Answers will vary. Operatorrefills control the amount of bever-age used. Patron refills requireless labor by the restaurant.2. Restaurants buy fountainsoda in bulk without packaging,which makes it very inexpensive.

38

Have you ever wondered why so manyrestaurants keep refilling your soda, tea, orcoffee for no extra charge? Do you thinkthat the restaurants are losing a lot ofmoney by pouring so many free drinks?Restaurants make their highest percentageof return from beverage sales. A soda thatcosts the customer $2.00 actually costs therestaurant only 3 or 4 cents. A lot of refillscan be poured, and the restaurant stillmakes a handsome profit.

THINK CRITICALLY1. If you ran a fast-food restaurant, wouldyou let the patrons refill their own bever-ages, or would you be in charge of refills?Why?2. Why does it cost a restaurant so littlefor the beverages it serves to customers?

DISTRIBUTION

Family restaurants, such as Bob Evans or Denny’s, offer even moremoderate prices and cater to the entire family. Although casual diningestablishments usually accept children, family restaurants dependheavily upon those customers who bring young children with them.Alcohol is usually not sold, and breakfast, lunch, and dinner menus are standard. Many locally owned family restaurants have wonderfulreputations.

Other types of restaurants exist as well. Cafeterias were a once-populartype of restaurant that still do well in some areas. Buffets offer a similartype of service, sometimes with a single price for each diner. Grills anddiners cater to the same customers as family restaurants, competing aswell in speed of service with fast-food places. In all cases, categories arenot hard and fast and there is considerable overlap, and even room fordebate. Is Chi-Chi’s a casual place, a theme establishment, or an ethnic restaurant?

QUICK-SERVICE RESTAURANTSDespite the many types of table-service restaurants, quick-servicesales dominate the food-service industry. Fast food is the largest mar-ket in the world for restaurant food. Fast food, as we know it today,grew out of old traditions of single-serving vendors and increasingindustrialization of food-service operations. Rapid serving times,appealing products, and reliable quality control throughout the worldaccount for the success of fast-food operations. Although there arelocal places and small chains, the famous international corporationsrule the industry. McDonald’s is the largest restaurant chain in theworld, with more than 24,000 restaurants. Next in sales in the fast-foodlist is Burger King, followed by Pizza Hut, KFC, Wendy’s, and Taco Bell.Tricon, Inc., owns Pizza Hut, Taco Bell, and KFC, but its combinedsales still are less than McDonald’s.

The quick-service industry is fiercely competitive, andbattles for the convenience-oriented consumer take manyforms. New menu items, special pricing promotions, toysfor children, and immense advertising campaigns are tech-niques the fast-food giants use to compete for the huge

market. Almost everyone can recite the slogans or even sing a jingle.Still, as fast-food restaurants approach the saturation point in Americansociety, growth in fast food is declining in the United States. The over-seas demand continues to grow.

2.4 RESTAURANTS

TEACHFamily restaurants and cafete-rias provide home-cooked mealsat a reasonable price. Theserestaurants are favorites forgrowing families and senior citizens.

Ongoing Assessment Use the Confirmation as anopportunity to conduct ongoingassessment of student compre-hension of the lesson material.

Time OutAsk students why they think fastfood has become increasinglypopular in places like China.

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What types of restaurants make up the table-service category?

Fine dining, casual dining, theme restaurants, ethnic restaurants, family restaurants

The competition forfast-food dollars is notconfined to the UnitedStates. According to

ChinaOnline.com, thebattle for fast-food

supremacy in China isbetween KFC and

McDonald’s. Althoughthe golden arches arefamiliar, KFC marketsa product more similarto traditional Chinesetastes. McDonald’shas added spicy

chicken wings to itsmenu to capitalize onthose traditions. KFCads claim McDonald’s

is copying them.McDonald’s denies

the claim.

PROMOTION


ON-SITE FOOD SERVICEAn often overlooked area of the restaurant industry is on-site food serv-ice. On-site food service are those food services in business and industrythat include institutional, educational, and corporate food services andmay include hotel restaurants as well. Although these are not usuallythought of as part of the hospitality industry, many of the same principlesfor planning and operation apply.

TEACHFast-food and quick-servicerestaurants have become a sta-ple in the United States.Increased competition in thequick-service industry and declin-ing sales in the United Stateshave caused many quick-servicerestaurants to expand their oper-ations internationally in order toincrease their customer base.

On-site food service is offered indormitories, government build-ings, corporations, and hotels.On-site food service competeswith other types of food servicethat cater food for major events.


Career SpotlightA good idea equipped with high-quality food and service grewinto a pizza and Italian foodempire for Val and Zena Weiler.Meticulous food preparation,friendly service, and comfortablerestaurants have resulted in suc-cess for Valentino’s restaurants.

Think Critically1. Excellent food, reasonableprices, clean and comfortablerestaurants, and friendly serviceled to the success of Valentino’s. 2. There is significant competi-tion in the pizza business.Marketing techniques to stayahead of competitors includeunique pizza, clean facilities,catering service for parties, andeducational tours of your restau-rant for good publicity.

40

What are the main reasons for the huge size of the fast-food market?

Rapid serving times, appealing products, and reliable quality control

VAL AND ZENA WEILER

In 1957 Val and Zena Weiler oper-ated the Campus Fruit Market

near the University of Nebraska. Itwas clear that their businesswould soon be eclipsed by largesupermarkets springing up inLincoln. Armed with three dozenpizza pans, a recipe that had beenin Mrs. Weiler’s family for years,and a lot of anxiety, they opened apizza business called Valentino’s.

They took in $60 their first day,and as the restaurant’s reputa-tion grew, patrons began togather and watch through thewindow as pizzas were made.They would stand in line for anhour or more to sample theItalian specialties created in theoriginal restaurant.

Today, Valentino’s hasexpanded to 44 company-owned

and franchised restaurant loca-tions in six states. The recipesand meticulous preparation stepsremain unchanged. Valentino’ssuccess began with those won-derful family recipes, but there ismore than food to the story. Thehighest quality food, reasonableprices, immaculately clean andcomfortable restaurants, andgenuinely friendly service led tosuccess.

THINK CRITICALLY1. What led to the success ofValentino’s restaurants?2. How much competition would you face with this type offranchise business? What mar-keting techniques could you use to stay ahead of your competitors?

2.4 RESTAURANTS

TEACHING STRATEGIESSpecific Learning DisabilityStudentsThe tactile learner may becomemore involved with this lessonwhen they are allowed to usethe Internet to look up informa-tion about different nationalrestaurant chains.

TEACHING STRATEGIESVisual LearnersShow the class trademarks fromfamous restaurants in the areaand discuss what type of foodservice is offered at each establishment.

ASSESSReteachGive students five to ten minutesto define and give an example foreach of the following categoriesof table-service dining establish-ments: fine dining, casual dining,theme restaurant, ethnic restau-rant, family restaurant.

EnrichHave students design a menufor a restaurant. The menushould include appropriateentrees and prices for the estab-lishment chosen.

CLOSECall off names of differentrestaurants in the area familiarto the students. Have studentscategorize the restaurants asfine dining, casual dining, themerestaurant, ethnic restaurant,family restaurant, or quick-service restaurant.

41


1. The two main divisions of the restaurant industry area. fine dining and fast foodb. casual dining and ethnic restaurantsc. table-service and quick-serviced. on-site and off-site dining

2. The fast-food businessa. is a purely American phenomenonb. continues to grow at an increasing rate in the U.S.c. holds the largest market share of the restaurant industryd. avoids innovation in marketing


3. Marketing Math In a recent year, McDonald’s had sales of $36 billion. What is the average sales per restaurant, then, forMcDonald’s approximately 24,000 units? What is the average salesper day of each restaurant, calculating with a 365-day sales year?

$36,000,000,000 � 24,000 units � $1,500,000 per restaurant

$1,500,000 � 365 days � $4,109.59 per day

4. Research Find a local restaurant for each of the table-servicecategories in this lesson. For each, write a very brief descriptionand indicate a price range for entrees.

Answers will vary. Students should list examples for each of the following

categories: fine dining, casual dining, theme restaurant, ethnic restaurant,

family restaurant.

THE IMPORTANCE OF TOURISMTourism is big business for most states, and sizable

amounts of money are spent on advertising campaigns toincrease tourism. States pay large sums of money to pro-duce creative promotions aimed at increasing tourism. Websites, television commercials, brochures, bumper stickers,

colorful publications, and coffee mugs are just a few of the publicity itemsthat states have designed to attract tourism. Themes such as “Wake Upto Missouri” or “Tennessee Sounds Good to Me” are now featured in tele-vision commercials. Development of a 30-second commercial can easilycost $10,000 or more. Each time the state commercial is shown on televi-sion it costs between $100,000 and $1 million, but it’s money well spent.

Most people associate sandy beaches or ski slopes with tourism.Florida, California, Colorado, and Texas are frequent vacation spots forspring breaks and family vacations. Increasingly, however, states onemight not think of as vacation destinations seek tourist dollars. Manynorthern states without ski resorts spend their advertising budgets fromMarch through September, realizing that many families take summervacations. Cities like Ames, Iowa have attracted popular country musicfestivals. Iowa State’s football stadium sells out for the popular music fes-tival and the economy benefits from tourism. Hotels fill with out-of-townguests, and restaurants pump up their volume of business.


TOURISM


FOCUSDiscuss with students whytourism ranks as one of the toprevenue producers for moststates. Ask students to identifyappropriate marketing strategiesto attract tourism dollars to dif-ferent states.

CHECK INAsk students to recall commer-cials for tourism to differentstates. Then discuss howexpensive it is to make and air acommercial. Why do statesinvest so much money intourism advertising? Are thecommercials effective?

Answers for Check InCooperative LearningAnswers will vary.

TEACHHuge sums of money are spenton tourism themes and commer-cials to attract tourist dollars to astate. Exciting events with strongpromotion result in tourism suc-cess even in the smallest places.

LESSON 2.5

Tourism is a big revenue generator for cities, counties, andstates. The hospitality industry is booming because every-one wants part of the revenue. Hotels and motels, restau-

rants, and other shops all benefit from the wanderlust oftravelers. Tourism provides jobs.

Miami, San Diego, Galveston, Las Vegas, and Washington D.C.are often associated with the tourism industry. The warm states ofCalifornia and Florida lure tourists to sandy beaches and year-round amusement parks. Revenue also comes from residentswithin a state. County and state fairs, amateur athletic events, localcelebrations, and concerts are part of the tourism industry, too.

Work with a partner. List recreational trips you’ve taken in thelast five years. Include short jaunts and “road trips” as well aslarge vacations. Considering all trips, have you spent a greatersum on short trips or on distant vacations?

Explain the rippleeffect of tourist dollars.

Identify factors thatencourage interna-tional tourism.

42

PROMOTION

Thousands of travelers pass through Nebraska each year and few ofthem stop as they speed through to South Dakota’s Black Hills orColorado’s Rocky Mountains. Nebraska State Senator Roger Wehrbeinwants Nebraska to be a destination. He has proposed a bill to annuallyset aside $1.5 million in general funds for developing Nebraska’s tourismindustry. Attractions like the Henry Doorly Zoo in Omaha, the Great PlatteRiver Road Archway Monument, Nebraskaland Days, and the BurwellRodeo could all become more popular tourist attractions with a little extramoney for advertising. Iowa, Nebraska’s main competitor in the tourismindustry, spends $17 million annually on tourism development whileNebraska spends just $2.7 million. Developing the state’s tourism indus-try would lead to new jobs and increased revenue for the state in urbanand rural areas.

This example from Nebraska demonstrates the value of tourism tolocal economies. Multiply that by the fifty states vying for the tourist dol-lar, and you begin to see the economic impact. Not only are tourist dol-lars essential for the hospitality industry, there is a ripple effect, asadvertising jobs, media development, and travel businesses from airlinesto gas stations also depend on the motion of visitors from one place toanother.

TOUR & TRAVEL PACKAGESA travel package is a prearranged vacation. Some packages includebasic travel services (transportation, accommodations), while others mayinclude a complete travel plan (meals, sightseeing, transfers, and soforth). Usually these packages are assembled by independent tour oper-ators and are sold through travel agents.

Purchasing a travel package has the advantage of convenience andvalue. A vast array of travel packages can cause confusion, so it isextremely important to read the fine print in advertisements and contracts.All extra charges should be clearly and conspicuously disclosed. It is alsoimportant to research tour operators to determine if they are reliable.Recommendations from friends and relatives can provide assurance. TheBetter Business Bureau may also provide valuable information.

2.5 TOURISM

Time OutA consistently good footballteam brings in big tourism dol-lars to a college town. Lincoln,Nebraska; Columbus, Ohio; andNorman, Oklahoma count onwinning football traditions forsold-out stadiums and big rev-enue from tourism.

TEACHMajor interstate highway sys-tems cross the United Statesfrom east to west and north tosouth. This visibility for manystates opens opportunities fortourism dollars. A successfulstate tourism industry dependsupon showcasing tourism ven-ues. All states compete fortourism dollars; tourism is amajor revenue producer through-out the country.

43

More Big Red meansmore green in Lincoln,

Nebraska. MarkEssman, director of

the Lincoln-LancasterCounty Conventionand Visitors Bureau,

reports that aUniversity of

Nebraska home foot-ball game gives

Lincoln merchants “acaptive market of78,000 people.”

Essman estimatesthat football visitorsspend $125 to $150per person each dayin Lincoln supporting

their belovedCornhuskers—and

the economy ofLincoln as well.


INTERNATIONAL TOURISMAstrong global economy in 2000 and special events to celebrate the

new millennium resulted in a 7.4% increase in world tourism. Thisgrowth doubled the increase of 1999. International trips increased by 50million in 2000. This is the same number of new tourists that major coun-tries such as Spain or the United States receive in the entire year. The

World Tourism Organization (WTO)estimated a record 698 million interna-tional travelers in 2000. Receipts frominternational tourism totaled $476 bil-lion. All regions of the world hostedmore tourists in 2000. The fastest-growing regions included East Asiaand the Pacific.

The strong dollar and weakEuropean currency attracted recordnumbers of American tourists toEurope, with Germany and Switzerlandenjoying their best results in years.The Middle East was on a fast track ofincreased tourism before renewed vio-lence cut the flow of tourists to theregion.

International tourism goes two ways,of course. Even with a strong dollar,the United States attracted millions of

additional international tourists and achieved an 8.7% growth rate.Economic slowdown in the United States and other key locationsthroughout the world reduces international tourism.

TEACHTravel packages provide trans-portation, lodging, and otheramenities for one price. Anaging population with disposableincome has increased the travelpackage business. Major univer-sities offer travel packages forbowl games, other sportingevents, and alumni vacations.All details of a travel packageshould be carefully disclosed tothe consumer. The BetterBusiness Bureau keeps track ofcompanies that have poor trackrecords with travel packages.


TEACH Technology and a strong econ-omy have made internationaltourism increasingly attractive.International tourism dependsupon the state of the economy,political stability, and strength ofa financial currency. The hospi-tality industry must be aware ofinternational tourists’ expecta-tions. Cultural sensitivity isextremely important for interna-tional tourism.


44

How does tourism benefit state economies?

Tourism increases state revenue and job opportunities.

What explains the recent growth in worldwide tourism?

Millennium celebrations, strong dollar, weak European currency

2.5 TOURISM

TEACHING STRATEGIES Gifted StudentsGifted students may need to begiven the opportunity to move atan accelerated pace. Afterreviewing the chapter, gifted stu-dents may show mastery byanswering selected questionsand problems instead of answer-ing all questions. This opens theopportunity for creative projectsfor gifted students.

TEACHING STRATEGIESKinesthetic LearnersAllow students to teach orreview restaurant concepts bypreparing computer presenta-tions for the different categoriesof restaurants. Presentationsshould include at least oneexample of each category.

ASSESSReteachSplit the class into teams of fourmembers. Each team is requiredto list the economic benefits oftourism to a state. Examplesinclude lodging and dining rev-enue and job creation.

EnrichIn pairs, ask students to createtag lines for different statetourism campaigns. Studentsmust list the top tourist attrac-tions for each state and thencreate an appropriate tag line.

CLOSEAsk students to write three para-graphs about the importance oftourism to state economies.Students may choose a state asan example for their paper. Havestudents tell the class why thestate they chose relies heavily ontourism and what key attractionsthe state has to offer tourists.

45


1. Travel packages includea. sightseeingb. transportationc. accomodationsd. all of the above

2. International tourism is growing becausea. passports are easier to get than everb. airline fares continue to dropc. Americans have more leisure timed. the world economy has been strong


3. Communication How do political events affect tourism? Giveboth domestic and international examples.

States can allot more tax dollars to stimulate tourism. States can charge

lodging and other tourism taxes.

4. Geography Why do you think California attracts more visitorsthan any other state? Suggest ways states like Oklahoma orMississippi could attract more visitors.

Answers will vary. California has a favorable climate, nice beaches, and

numerous attractions and amusement parks. Oklahoma and Mississippi must

determine their strongest tourism points and sell their bill of goods.


ASSESSReteachReview the goals and the confir-mation questions in each lesson.Have students respond and dis-cuss answers.

EnrichAsk students to create a ficti-tious resort. What would be thefocus of the resort? How wouldthey promote the resort? Oncestudents have thought throughthese and other details, havestudents create a brochure fortheir resort.

PORTFOLIO ASSESSMENTHave students add the followingmaterials to their portfolios:• Text for bed and breakfastbrochure• List of table-service diningestablishments• Paper on the importance oftourism to state economies

REVIEW MARKETING CONCEPTSWrite the letter of the term that matches each definition. Someterms will not be used.

1. Offer residential-style units with multi-room plans and kitchen facilities

2. A prearranged vacation3. Facility with primary features of privacy

and personal service 4. Properties that provide a range of

services, usually including a restaurant on the premises, luggage assistance, and room service

5. Living quarters owned by private persons that are rented out to the public most of the year

6. Most common lodging facilities found in the United States

7. Buying a specific time period to spend at a vacation resort

Circle the best answer.8. Airport hotels d

a. have reputations for being dowdy with poor servicesb. are spending thousands of dollars to change their imagec. are becoming more luxuriousd. all of the above

9. Motels da. were first started by farmers along busy highwaysb. usually have more than one storyc. have parking near the guest’s roomd. A and C

10. A successful conference center must have all of the following excepta. ample number of hotel rooms cb. good variety of restaurantsc. low hotel room ratesd. good airports

REVIEW

a. bed and breakfastb. condominiumc. conference centerd. extended-stay

facilitye. full-service hotelf. hotelg. limited-service

propertyh. moteli. motor innj. resort

k. timesharel. travel package

46

d

la

e

b

i

k

THINK CRITICALLY11. Spend time with another student to develop a Top Ten List of

characteristics possessed by successful restaurants.

Answers will vary. Possible answers include excellent food, good service, clean facility,

friendly atmosphere, convenient parking, unique food, fair prices, incredible servers, and

safe location.

12. You have been hired by a struggling full-service hotel to update itsamenities in order to attract more guests. Make a list of five solidsuggestions to update the hotel in order for it to survive in a compet-itive marketplace. Don’t forget to consider cost.

Answers will vary. Possible answers include efficient airport transportation, computer

technology, better room service, special attention to cleaning rooms, and quick

check in/check out.

13. Explain how technology is changing the travel and tourism industry.

Technology is making it easier to book reservations and to check in and check out.

Giving travelers technology in their rooms for personal and business use adds value to

the lodging experience.

HOSPITALITY MARKETING

47


MAKE CONNECTIONS14. Marketing Math You are in charge of organizing your marketing

employer/employee appreciation banquet. You have decided that theItalian buffet best meets the needs of all people attending the ban-quet. Each meal costs $18 plus 21% for tax and gratuity. How muchwill each meal cost? What will the banquet cost for 120 attendees?

$18.00 � 1.21 � $21.78 per meal

$21.78 � 120 � $2,613.60 total cost

15. Communication You are in charge of special tours for the HeritageClub. This group consists of people aged 55 and older who taketours as a group. Use the Internet to find out information aboutBranson, Missouri. Describe a tour package to Branson, Missouri thatyou will offer the Heritage Club. Make sure to include informationabout travel, hotel accommodations, entertainment, meals, and cost.

Answers will vary. The description must include information about travel, hotel

accommodations, entertainment, meals, and cost to Branson, Missouri.

16. Technology Lesson 2.1 described technological advancementsthat hotels are adding to attract customers. Now it is time for you topredict travel and tourism technology for 2050. Don’t forget aboutvirtual trips and Internet connections.

Answers will vary. Examples include virtual trips before actually making reservations and

Internet connections that give you virtual tours of hotels and tourist attractions.

REVIEW

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HOSPITALITY MARKETING

DECA PREPEach assignment in this projectfollows the guidelines set byDECA for Individual SeriesEvents. Refer to the DECA website for detailed informationabout this event.

EXTENDED STAYHelpful resources for this projectinclude menus from fine restau-rants and web sites of finerestaurants.

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You are the marketing manager for a new restaurant in a city with amajor convention center. Your restaurant serves fine seafood andsteaks. Prices charged by your restaurant are high since you offer onlythe freshest seafood and the best service. Your restaurant has a dresscode that requires business attire.

Work with a group and complete the following activities.

1. Design a menu that represents the entrees and prices for your eliterestaurant. (Do research to establish prices.)

2. Create a news release for the newspaper that highlights the finefood and service of your restaurant. You may want to highlight thehigh caliber of your chefs and servers.

3. Create a color advertisement for the local travel magazine that isplaced in all hotel rooms of the city where your restaurant islocated.

4. Your restaurant also caters events at the major hotels near the con-vention center. Determine what meals you will make available forcatering, prices you will charge for the meals, and special servicesyou will offer for the catered event. Give reasons for each of yourdecisions.

5. Your restaurant has been losing business to competitors who offera wider variety of menu items with a price range from $8 to $20.You have been called upon to create a marketing strategy andrestaurant update to meet the challenges of the competition.Explain five changes that you propose for the restaurant. Makesure to defend each of your ideas.

http://www.deca.org/publications/HS_

Guide/guidetoc.html

You are the manager at a popular full-service restaurant. Your restau-rant has always taken pride in serving the freshest seafood with thefriendliest service. Mother’s Day is always a busy time for your restau-rant. Accurate reservations are essential for a good business day. Anew employee, who did not fully understand the reservations system,overbooked the dinner reservations. Customers with reservations areshocked to learn that they will not be seated until 20 to 45 minuteslater than their reserved time. The waiting area in the restaurant isfilled with unhappy loyal customers. Some of the customers are leav-ing angry and vowing to tell their friends about the bad experience.What will you do to cool down this bad situation? What new proce-dures will you implement to make sure this situation does not occuragain? You do not want to lose loyal customers. This role play involvessatisfying a frustrated customer.

FULL-SERVICE RESTAURANT MANAGEMENT ROLE PLAY

conrad n. hilton - · pdf filevideo, ch. 2 instructor’s resource cd, ch. 2...

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