About the Industry
Hotels and other accommodations are as diverse as the many family and business travelers they accommodate. The industry includes all types of lodging, from upscale hotels to RV parks. Motels, resorts, casino hotels, bed-and-breakfast inns, and boarding houses also are included. In fact, in 2004 nearly 62,000 establishments provided overnight accommodations to suit many different needs and budgets.
Establishments vary greatly in size and in the services they provide. Hotels and motels comprise the majority of establishments and tend to provide more services than other lodging places. There are five basic types of hotelscommercial, resort, residential, extended-stay, and casino. Most hotels and motels are commercial properties that cater mainly to business people, tourists, and other travelers who need accommodations for a brief stay. Commercial hotels and motels usually are located in cities or suburban areas and operate year round. Larger properties offer a variety of services for their guests, including a range of restaurant and beverage service optionsfrom coffee bars and lunch counters to cocktail lounges and formal fine-dining restaurants. Some properties provide a variety of retail shops on the premises, such as gift boutiques, newsstands, drug and cosmetics counters, and barber and beauty shops. An increasing number of full-service hotels now offer guests access to laundry and valet services, swimming pools, and fitness centers or health spas. A small, but growing, number of luxury hotel chains also manage condominium units in combination with their transient rooms, providing both hotel guests and condominium owners with access to the same services and amenities.
Larger hotels and motels often have banquet rooms, exhibit halls, and spacious ballrooms to accommodate conventions, business meetings, wedding receptions, and other social gatherings. Conventions and business meetings are major sources of revenue for these hotels and motels. Some commercial hotels are known as conference hotelsfully self-contained entities specifically designed for meetings. They provide physical fitness and recreational facilities for meeting attendees, in addition to state-of-the-art audiovisual and technical equipment, a business center, and banquet services.
Resort hotels and motels offer luxurious surroundings with a variety of recreational facilities, such as swimming pools, golf courses, tennis courts, game rooms, and health spas, as well as planned social activities and entertainment. Resorts typically are located in vacation destinations or near natural settings, such as mountains, the seashore, theme parks, or other attractions. As a result, the business of many resorts fluctuates with the season. Some resort hotels and motels provide additional convention and conference facilities to encourage customers to combine business with pleasure. During the off season, many of these establishments solicit conventions, sales meetings, and incentive tours to fill their otherwise empty rooms; some resorts even close for the off-season.
Residential hotels provide living quarters for permanent and semi permanent residents. They combine the comfort of apartment living with the convenience of hotel services. Many have dining rooms and restaurants that also are open to residents and to the general public.
Extended-stay hotels combine features of a resort and a residential hotel. Typically, guests use these hotels for a minimum of 5 consecutive nights. These facilities usually provide rooms with fully equipped kitchens, entertainment systems, ironing boards and irons, office space with computer and telephone lines, fitness centers, and other amenities.
Casino hotels provide lodging in hotel facilities with a casino on the premises. The casino provides table wagering games and may include other gambling activities, such as slot machines and sports betting. Casino hotels generally offer a full range of services and amenities and also may contain conference and convention facilities.
In addition to hotels and motels, bed-and-breakfast inns, recreational vehicle (RV) parks, campgrounds, and rooming and boarding houses provide lodging for overnight guests. Bed-and-breakfast inns provide short-term lodging in private homes or small buildings converted for this purpose and are characterized by highly personalized service and inclusion of breakfast in the room rate. Their appeal is quaintness, with unusual service and decor.
RV parks and campgrounds cater to people who enjoy recreational camping at moderate prices. Some parks and campgrounds provide service stations, general stores, shower and toilet facilities, and coin-operated laundries. While some are designed for overnight travelers only, others are for vacationers who stay longer. Some camps provide accommodations, such as cabins and fixed campsites, and other amenities, such as food services, recreational facilities and equipment, and organized recreational activities. Examples of these overnight camps include children's camps, family vacation camps, hunting and fishing camps, and outdoor adventure retreats that offer trail riding, white-water rafting, hiking, fishing, game hunting, and similar activities.
Other short-term lodging facilities in this industry include guesthouses, or small cottages located on the same property as a main residence, and youth hostelsdormitory-style hotels with few frills, occupied mainly by students traveling on limited budgets. Also included are rooming and boarding houses, such as fraternity houses, sorority houses, off-campus dormitories, and worker's camps. These establishments provide temporary or longer term accommodations that may serve as a principal residence for the period of occupancy. These establishments also may provide services such as housekeeping, meals, and laundry services.
In recent years, hotels, motels, camps, and recreational and RV parks affiliated with national chains have grown rapidly. To the traveler, familiar chain establishments represent dependability and quality at predictable rates. National corporations own many chains, although many properties are independently owned but affiliated with a chain through a franchise agreement. Many independently operated hotels and inns participate in national reservations services, thereby appearing to belong to a larger enterprise. Also, many hotels join local chambers of commerce, boards of trade, convention and tourism bureaus, or regional recreation associations in order support and promote tourism in their area.
Increases in competition and in the sophistication of travelers have induced the chains to provide lodging to serve a variety of customer budgets and accommodation preferences. In general, these lodging places may be grouped into properties that offer luxury, all-suite, moderately priced, and economy accommodations. The numbers of limited-service or economy chain propertieseconomy lodging without extensive lobbies, restaurants, or loungeshave been growing. These properties are not as costly to build and operate. They appeal to budget-conscious family vacationers and travelers who are willing to sacrifice amenities for lower room prices.
While economy chains have become more prevalent, the movement in the hotel and lodging industry is towards more extended-stay properties. In addition to fully equipped kitchenettes and laundry services, the extended-stay market offers guest amenities such as in-room access to the Internet and grocery shopping. This segment of the hotels and other accommodations industry has eliminated traditional hotel lobbies and 24-hour front desk staffing, and housekeeping is usually done only about once a week. This helps to keep costs to a minimum.
All-suite facilities, especially popular with business travelers, offer a living room or sitting room in addition to a bedroom. These accommodations are aimed at travelers who require lodging for extended stays, families traveling with children, and business people needing to conduct small meetings without the expense of renting an additional room.
Increased competition among establishments in this industry has spurred many independently owned and operated hotels and other lodging places to join national or international reservation systems, which allow travelers to make multiple reservations for lodging, airlines, and car rentals with one telephone call. Nearly all hotel chains operate online reservation systems through the Internet.