This is for Hospitality Management Progra - Contemporary Resort Development and Management

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Chapter 1
The Resort Concept

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Size and Scope of the

Lodging Industry

Do you think that the number of resort hotels in US is increasing or decreasing?

Resort Hotels – 573,000 rooms 13% of the lodging industry

4.4 million rooms under U. S lodging category

Resorts – growing segment

Global hotels and resort industry – $1tr in total revenue in 2019

Annual Growth 2014-2019 – 1.0%

Consumers_Confident about finances

Spent more liberally on luxuries

Substantial increase in travel rates

Hotel room and occupancy rates

Two indicators of a hotel's performance.

Why is it increasing…?

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Competencies for

The Resort Concept

Size and scope of lodging and resort industry.

Categories of lodging and resort operation and other possible classification schemes.

Difference between classic hotels and resorts

Classic Hotels

  • What is a classic hotel?
  • People travelling for commerce, trade, govt. affairs etc.
  • Reliability, standards, convenience
  • Less elastic, less price sensitivity, predictable demand/consumption behavior
  • More profitability

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Class Activity

  • How a classic hotel stay is different from resort stay?

On the surface, it can be hard to tell the difference between a resort and a hotel, especially when marketing starts getting involved. But there are clear differences, and knowing them can help you make sure you get the right kind of lodging at the right price.

The Rooms

When you stay at a hotel, you’ll probably spend most of your time either away from the hotel or in your room, perhaps a little time at the hotel bar. As a result, hotel rooms tend to be simple, but comfortable, with a bed, a bathroom, and maybe a chair or a desk. These are built to give you a serviceable place to sleep, work, or relax.

With a resort, it’s expected that you’ll spend most of your time enjoy the facilities, and very little time in your room. As a result, the rooms tend to be a little smaller. That being said, you can also find rooms more geared towards luxury and relaxing. These will tend to have whirlpool tubs instead of showers, and soft chairs instead of desks.

The Facilities

This is the biggest difference between the two. At a hotel, you’ll find facilities that are somewhat fun, but a little more practical. Amenities like fitness rooms, laundry facilities, and conference rooms are more common at hotels. Bars and restaurants will tend to be a little more practical, and the pool is probably more straight-forward.

At resort, the focus is on having a good time and relaxing. Many resorts will have multiple pools that are often geared for fun with slides or pool bars. There are often multiple restaurants with different feels to them. There can be extensive gardens, access to a private beach, or a wide variety of other features geared to having a good time.

The Focus

There is a reason behind all of this:

Hotels are built for travelers. Sure, they want you to relax and feel welcome, but most of the clientele of hotels is people who are only staying there, This includes business travelers, people stopping on a trip, or tourists who will spend their time away from the hotel.

Resorts are built for vacationers. The guests at a resort will be there specifically to spend their free time enjoying the resort’s facilities. Rather than just being a place to stay, a resort is the actual destination for the guests.

Hotels Within Resorts

Sometimes, hotels can be within a resort, such as at theme parks or casinos. But even then, the same rules apply: These hotels assume that you will spend your time in the theme park or on the casino floor instead of in your actual hotel.

Resort Vs.Hotel

  • Guest Relations
  • Repeated guests
  • Length of stay (one week vs. 3 days)
  • Time share (avg.8.5 nights)
  • Extra space, spa, shopping, health centers etc.

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Resorts Specific

  • Visitor Market
  • Leisure Segment
  • Business plus leisure
  • Facilities
  • Entertainment Focused

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  • Location
  • Urban/Rural
  • Recreation
  • Popular Sports
  • Seasonality
  • Service Attitude

Resorts

  • Leisure experience
  • Clientele?
  • Families, stressed out workaholics

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Is “Bleisure” travelers a market for resorts? Why/Why not?

  • “Bleisure”: Bleisure travel isn’t exactly new, but now we have a word for it, and the industry is becoming savvier about it how serves those travelers who want to combine business trips with a mini-vacation. Many bleisure travelers are millennials. Technology has helped them integrate various aspects of their lives, and, as a result, their personal and professional lives are less separate, Tucker said. They may be working harder than ever and taking fewer “traditional” vacations. So when their jobs take them out of town—and, even more so, out of country—they’re looking to extend their stays (Booming Hospitality Industry Faces Big Challenges in 2018, Jan. 9, 2018 in Industry Trends )

Types of Resorts

By seasonality:

  • Year-round resort
  • (e.g. Disney World Resorts)
  • Summer resort
  • (e.g. hunting lodges)
  • Winter resort
  • (e.g. ski resort)

Types of Resorts

By designation:

  • Spa resort
  • Golf resort
  • Eco resort

Diving resort

Fishing resort

Marina resort

Conference resort

Camp-site

Ski resort

Guest ranch

Theme park resort

Casino resort

Guest Ranches

  • “Dude ranch”
  • Found in 11 different states and 2 Canadian provinces
  • Western, Southwestern and Rocky Mountain States
  • Personalized services, rustic touch, can be a luxurious stay

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Guest Ranches

Eco-Resorts

  • Small scale development
  • Low marketing efforts
  • Balance between environmental and economic needs
  • Location: e.g. tropical rain forest
  • Sustainable practices?
  • solar heating, natural cooling,

biodegradable consumer products

well/spring water

UNWTO – 65 eco-hotels

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Types of Resorts

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By size:

Mega-resort

Boutique resort

Boutique versus Mega Resorts

  • Size of property and size of investment
  • Mega Resorts – 3000 rooms or more`
  • Multiple golf courses and recreation facilities
  • Investment in billions of dollars
  • Boutique Hotels – 100 to 200 rooms
  • Investment varies – economic to luxurious

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Mega Resorts

Boutique Hotels

  • E.g. Villa Fertinelli (21 suites) – I million per suite for development

Class Activity

  • Many of the hotel brands entered the resort segment of the lodging industry (Marriot Hotels & Resorts, Intercontinental Hotels & Resorts, Hilton Hotels & Resorts). Why do you think business focus more on resort development and management in today’s market?

Time shares

  • Fastest growing segment in the leisure travel
  • Interval ownership/vacation club ownership
  • Second home without the responsibility of ownership

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TIME SHARE

  • Denver-based Exclusive Resorts

Condominium Hotels

  • Own a condo
  • Different from time share – ownership
  • Operation and management – different from classic hotel
  • Owner has management contract
  • Shared profits for owners and management company – guest rentals

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Types of Resorts

Others:

  • All-inclusive resort
  • Mixed-use resort
  • Themed/fantasy (storyline)
  • Floating (cruise ships)

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All Inclusive

  • Vacation package
  • Transportation to and from destination
  • Prepaid holidays
  • Convenience and value
  • Costs are known upfront
  • Caribbean Bahamas, Bermuda

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Mixed Use

  • Project with some combination of retail, office, residential, hotel, recreation space
  • Attract various clientele
  • Shoppers for retail space
  • Tenants for offices
  • Buyers for time share
  • Players for rec.facilities
  • Leisure travelers

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Themed Resorts

  • Fantasy Resorts
  • Casino Resorts in Las Vegas
  • Pleasures of Roman Times (Caesars Palace)
  • Caribbean pirates (Treasure Islands)
  • Story Line Resort
  • Atlantis Resort on Bahamas – Legend of Atlantis storyline

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