Tuesday, 30 November 2010
SUMMARY
Other Organisation Associated with the Hospitality Industry
Bessides accommodation and food and beverage service providers, there are hundreds of different orgnisations associated with the industry in one way or another.These include trade unions, trade associations,advisory bodies, reearch bodies,government departments,educational and awarding bodies and others.There are broadly two types of organisation: voluntary ones for either individual or organisations and government and quasi-government agencies,directly relating to the hospitality industry.
Followig are some of te organisations in theUK:
SUMMARY
The Hospitality Industry in one of he largest sector in the international business environment.The international hospitality industry is composed of large multinational enterprises(MNE) and small - and medium-sized enterprises(SME). Geographically the industry is very widespread and dispersed,from metropolitan cities to remoe rural areas.
There are various ways of subdividing the industry.In the broadest sense it can be divided in accommodation sectors and food and beverage sectors. it can be further divided by ownership ,e.g.if an organisation is under private or public ownership. This is often related to wheter the organisation will do business on a profit or cost basis. Ownership can be further divided into categories sus as indepandent orgainsations, chains, franchises and those under management contract.
Finance for international hotel development can be obtained through:
There are various ways of subdividing the industry.In the broadest sense it can be divided in accommodation sectors and food and beverage sectors. it can be further divided by ownership ,e.g.if an organisation is under private or public ownership. This is often related to wheter the organisation will do business on a profit or cost basis. Ownership can be further divided into categories sus as indepandent orgainsations, chains, franchises and those under management contract.
Finance for international hotel development can be obtained through:
- Private finance through personal savings
- Loan capital through banks and other sources,often secured o property assets
- Finance provided by specialist investment companies
- Through stocks and share(equities) in a company: these can be traded in the stock market
- Government
Another issue affecting the international hospitality industry is that of intergration or consolidation. This can be in the form ofvertical or horizontal integration.
5. Issues In Enternational Hotel Sector Structure
Organisations tend to expand through takeovers or mergers in order to benefit from economies of scale.This is evident in the corporate efficiency gained by hotel chains. Vertical integration refer to the integration or tie-ups between different type of organisations within the supply chain. For e.g. tie-ups between tour operators, transport providers,hoteliers and so on. This can bring improvemen ts in customer relationships,benefits in costs and improved quality. These larger firms will also be able to enjoy greater efficiencies through economies off scale.
In the international hotel sector, two distinct groups can still be identified. On the one hand is a large number of small independent business units and on the other the increasing enervation of chain units.
Despite the expansion of branded hotel capacity and the plethora of mergers, acquisitions and take - overs during the last decade, Europe's hotel sector remains dominated by individually owned properties or small hotel companies .As a result, it is estimated that no more than 20% of Europe's hotel capacity is branded.
Region Branded rooms as % of total
North America 65
East Asia 25
Middle East 25
South America 20
Europe 25
Chain penetration by region in % of total hotel stock, 2004 (Source:Mintel, 2005)
in a review of integration strategies in the tourism industry covering the half century to 2000, its been concluded much vertical integration has failed, largely due to the differences in capital and integration has failed, largely due to the differences in capital and organisational/operational characteristics in activities (e.g. the differences between providing hotels to running airlines).
Horzontal integration strategies have been more successfull,though they indicate that there are important issues of consumer choice that should be considered if this is diminished. Based on this work, therefor, it is likely that thegrowth of large hotel chains will be a significant feature of the international hospitality industry.
In the international hotel sector, two distinct groups can still be identified. On the one hand is a large number of small independent business units and on the other the increasing enervation of chain units.
Region Branded rooms as % of total
North America 65
East Asia 25
Middle East 25
South America 20
Europe 25
Chain penetration by region in % of total hotel stock, 2004 (Source:Mintel, 2005)
in a review of integration strategies in the tourism industry covering the half century to 2000, its been concluded much vertical integration has failed, largely due to the differences in capital and integration has failed, largely due to the differences in capital and organisational/operational characteristics in activities (e.g. the differences between providing hotels to running airlines).
4.Finance For Hotel Development
To understand the nature of supply in the international hotel sector it should be remembered that it is a sector that has high fixed investment costs and it is possible to divorce ownership of assets from their operation, e.g through management contracts.
The capital structure of the sector relates to the source of capital for funding the buildings or fixed resources of the sector. Given the capital-intensive nature of hotel investment,
availability of capital is a key driver in the development of the international hotels and hotel companies. The main sources of capital for international hotel development are :
The capital structure of the sector relates to the source of capital for funding the buildings or fixed resources of the sector. Given the capital-intensive nature of hotel investment,
availability of capital is a key driver in the development of the international hotels and hotel companies. The main sources of capital for international hotel development are :
- Private finance through personal savings
- Loan capital through banks and other sources, often secured on property assets
- Finance provided by specialist investment companies
- Through stocks and shares (equities ) in a company : these can be traded in the stock market
- Government.
In some cases there may also be tourism/hotel accommodation Financed by local cooperatives organisations such as conservation/historical/sporting trusts and associations.major financial arrangements are as illustrated:
In most cases, private finance allows owners to have direct control over the busies. Many operations may be small units that are only partly devoted to the hospitality industry e.g. guest house where room letting makes up only part of a family's income.
Private finance largely depends on personal access to large amounts of capital. thus big businesses of either single or multiple hotels may arise when asset and income distribution is such that it allows sufficient concentration of wealth. Personal ownership will be favoured when capital markets are relatively less developed. it is also feasible that international capital.
.Multinational Companies
Hotel Group Number of countries present
Inter Continental 100 Accor 93 Best Western 85
Starwood 83 Hilton Group plc 74 Marriott 66
Carlson 66 Le Meridian 55 Golden tulip 45
Number of countries present of multinational hotel groups ( source: Clarke and chen , 2007)
Positive contributions made by multinational companies include:
- Contributions to the economy of the country of developmnt by means of investment.
- Multinationals bring with them their brand recognition, star ratings,quality of facilities.
- Consistent products and services
- Local hotel owners can be 'placed on the map' with access to global distribution sstems.
- play a major role in image building and attracting foreign tourists.
- Marketing expertie
- Introduce professionalism to the business
- Single tariff structure might leave it to expensive for locals.
- Revenue leaking out of local economy
- Multinational companies dominating the industry making it difficult for small companies to build up their brands.
- Human resource management issues e.g misunderstanding culture, wage differentiation, friction between local policies and company policies
.Management Contracting
Here asset ownership nd operation are separated. This might happen where the hotel owner is, for example, an investment company that has no expertise in hotel managemnt, and enters into an agreement with a hotel operator to run the hotel on their behalf, in return for a management fee. In these arrangements there is clearly anexpectation that the ownersexpect that the contractor wil be able to run the operation more effectively than could themselves.
it is possible that a government, or its agencies , may oerate hotels. However, even when governments played a more active part in hotel ownership, the operation was often put out to management contract and the current decline in direct hotel asset ownership in many countries has further decreased government operation.
The attractions of belonging to a hotel chain largely centres around the ability to gain economies of scale.while hotel units may operate mre effectively as they grow in size , eonomies of scale for hotels laargely express themselves at corporate lavels of the organisation, as well as through the enhanced risk of diversification gained by the possessionof a geographically dispersed portfolio of properties. In many case the popularity of branded operations has both pushed established operators to develop and internationalize their chains further, while also providing salle orators with a clear4 rationale for giving up an element of independence through joining consortium membership or franchising agrements.
.Franchising
In this situation the hotel owner 'buy-in 'a specific style of operation from a parent/owner of the operation format. The formate parent or 'franchisor' owns the businessformt, the trading name and all propriety aspects of the operation- the formula or design of the nusiness.it training, advertising and techinical advice. The operator,a franchisee, is given a licence to operate in the franchisor's name, in return for the payment of a royalty fee.
a franchising licence may be granted to an operator (or franchisee) for one or severa operations. A licence which gives an operator exclusive rights in a particular territory iscalled a master franchise. As exchange for the payment of the royalty fee, the franchisee wil recive a standard operating format and the necessary black up to launch and maintain the business.
3. Ownership and Affiliantion
These large chains transformed the hospilality industry because they introduced more professionalism to the business than ever before in the liks of size, financial and manpower resources and motivation t deliver higher standards from increased competition Idependent owners have the advantage of giving their properties unique characteristics and are flexibility to change their concepts.
These properties do not have the advantages of economies of scale enjoyed by chain operators. Some advantages can be gained by joining consortia.
.Hotel Chains
Another important structural variable in the hotel secor relates to the form of affiliantion hotels operate under. IN this context an importain feature of the sector has been the development of hotel chains. Hotel chains may be defined as multi- unit service organisations in which units operate under a system of decison-making permitting coherent policies and a corporate functions are linked to add value to each other by ownership or contactual relationships'.
.Consortium Member
This is a mechanism whwereby hotels( or indeed a wider set of tourism organisations) agree to cooperate in order to gain corporate benefits, which raise revenue and / or cut costs in ways the business could not achieve on its own. for example, benefit could accrue from joint purchasing or marketing activities.
The consortium approach can operate in tandem with other forms of affiliation- i.e include independently/ autonomously owned hotels as well as units which are members of chains. in addition to cost efficiency possibilities, consortium membership may appeal to hoels because of their location needs( e.g. marketing a specifice destination during periods of slack demand/overcapacity), market niche/branding purposes (reach new custom due to branding national/international benefits together with joint servic such as central reservations and joint representation . Membership is considered on the basis of the fit of the applicant to the objectives of the consortium and their ability to meet subscription and operational requirement (such as maintenance of a given standard/ style o operation).
it is also a feature of most consortia that members are represented on the menagement board of the organisation.
2.Standard Endustrial Classification
In the UK, the hospitality industry is ctergorised according to the Standard Industrial Classification. The Standard INdustrial Clasification (SIC) was first introduced into the UK in 1948 for use in classifyin businss establishments and other statistical units by the type of economic activity in which they are engaged.
The classification provides a frmework for the collection, tabulation, presentation and analysis of data and its use promotes uniformity. In addition, it can be used for administrative purposes and by non- government bodies as a convenient way of classifying industral activities into a common structure.
Catering Service Sectors
Catering provided by the catering service sectors is referred to as welfare catering o subsidised catering.Subsidised and welfare catering is often provided in publice sectors rather than in private sectors.This sector is also referred to as the cost sector.The focus here is not on making profit,but rather on providing meals to those unable to provide for themselves. This sector covers,school,hospitals,prisons,armed forces and government offices. The markets serced by this sector are often captive or restrictd and the food has to be broughtto thecusomer rather than the customer going to the food service establishment.
Whith the introduction of competitive bidding, many contracts are now awarded to commercial contract caterers. This introduced new concepts and commercialism to the public sector.
Commercial Sector
Monday, 29 November 2010
1.Commercial Sectors and Catering Service Sectors
Organisational Structure of the Industry
The Hospitality Industry in one of the largest sector in the internatinal business enviroment. The international hospitality industry is characterised by an industry structure composed of a relatively small number of large multinational enterprises (MNE) and a large numberof locally operated small -ad medium-sized enterprises (SME) . Geographically the industry is very widepread and dispersed,from metropolitan cities to remote rural areas. There are various ways of subdividing the industry.in the broadest sense it can be divided in ownership , e.g if an organisation is under private or public ownership. This is often related to whether the organisation will do business on a profit or cost basis. Ownership can be further divided into categories such as independent organisations, chains and franchises.
Learning Outcomes
After studying this chapter, students should be able to:
the word 'hospitality ' refers to the relationship between a guest and a host, and it also refers to the practice of being hospitable ,i.e to receive and entertain guests, visitorss, or strangers, wih kindness. As such,the act of provision of accommodation and sstenance to strangers is an act of 'hospitality'. there is interaction between a host and a guest.
Accommodation refers to the provision of overnight accommodation for people staying away from home or not preparing their own meals.
The hospitality industry comprises the sectors where hospitality is practiced, with the main sectors being hotels,resturants and catering. the hospitality product refers to the tangible and intangible components of food, beverage and accommodation,ncluding the sercvice and atmosphere.
Catering refers to the provision of food service. The catering indusry is one of the most diverse industries,ranging from fine dining restaurants to fast food restaurants,from feeding people at work to welfare ctering in hospitals and schools
- Define hospitality and catering
- Outline the organisational structure of the industry including commercial and catering service sectors, ownership and affiliation
- Identify other types of organisations associated with the hospitality industry
- Discuss the size of the sector
the word 'hospitality ' refers to the relationship between a guest and a host, and it also refers to the practice of being hospitable ,i.e to receive and entertain guests, visitorss, or strangers, wih kindness. As such,the act of provision of accommodation and sstenance to strangers is an act of 'hospitality'. there is interaction between a host and a guest.
Accommodation refers to the provision of overnight accommodation for people staying away from home or not preparing their own meals.
The hospitality industry comprises the sectors where hospitality is practiced, with the main sectors being hotels,resturants and catering. the hospitality product refers to the tangible and intangible components of food, beverage and accommodation,ncluding the sercvice and atmosphere.
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Special Announcement (6 Oct 2010)
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If you are looking for Hong Kong Hotels or Hotels in Asia. Please take a look at our other sites below: Hong Kong Hotels, Special Hotels Rates in Asia
[ more news below ]
Recommended Singapore Hotels:
New Majestic Hotel
Rates From: S$301| StreetName: Bukit Pasoh| Location: Chinatown
Desc: The New Majestic Hotel is a unique and non-traditional hotel with various theme rooms av...
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Desc: Hotel Re! @ Pearls Hill offers retro-style designed rooms, where you can find iconic pop...
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Desc: The Grand Copthorne Waterfront combines elegance in a tropical, resort-like setting with...
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Desc: Ibis Singapore on Bencoolen is the first international economy hotel in Singapore and is...
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Fragrance Hotel - Imperial
Rates From: S$118| StreetName: Penhas Road| Location: Near City Central
Desc: Affordable accomodation never comes any better than Fragrance Hotel - Imperial. One of ...
Perak Hotel
Rates From: S$147| StreetName: Perak Road| Location: Little India
Desc: Perak Hotel, restored beautifully from some old shop-houses, is an ideal "home away fro...
Happy Hotel
Rates From: S$60| StreetName: Geylang| Location: Geylang
Desc: Happy Hotel aims to provide you with some of the best Singapore hotel accommodation, wit...
>> Complete List of Newly Added Singapore Hotels
Rates Updated (7 Oct 2010)
We have completed the updating of hotel rates for most of the Singapore hotels in our database. You may continue to do the booking even if the rates are not updated. We will advise you if there are any changes to the rates.
Thank you for your continued support!
ITB Asia 2010 - October (7 Oct 2010)
ITB Asia, the trade show for the Asian Travel Market will be held in Singapore. The three day annually B2B trade show and convention, will take place in October 20 to 22, 2010 in Singapore.
Visitor arrival are expected to increase. If you are planning to visit Singapore during these few months, we strongly urge you to make your bookings for hotels in Singapore immediately.
You can choose from our list of heavily discounted Singapore hotels for your stay in Singapore.
Marina Bay Sands Hotel Promotions (7 Oct 2010)
Marina Bay Sands Hotel is the main landmark hotel in Singapore,situated in the heart of Singapore's central business district. It is the premiere Singapore Casino Hotel. The Marina Bay Sands integrated Resorts is going to be the only resort which is a city within a city.
See Promotional Rates for Singapore Marina Bay Sands Casino Hotel.
More Hotels Added! Rates Updated! (22 Apr 2009)
We have added several more hotels to our list. Check under Newly Added Singapore Hotels section.
We have also updated rates for several hotels which are providing further discounts to our already discounted rates.
Hotels Rates Added! Singaporeans Welcome! (02 Apr 2009)
We have updated the rates for most hotels in Singapore available for booking via our system. We will continue to honour the rates which have not been updated. In event we are unable to, we will inform you of the latest available rates and you are free to reject the rates without penalties.
We have made arrangements with over 50 hotels to made available our heavily discounted rates to Singaporeans! Check out our Singaporean Welcome page now!
More New Hotels Added! (13 Mar 2009)
We will be adding more features to Hotels.Online Singapore very shortly. You would be able to locate your preferred Singapore hotels much easier than current, more details will be provided for you to make an informed choice.
Please do keep a lookout for it! Thank you!
Revamp Finally Completed! (06 Feb 2009)
We have finally completed the revamp of Hotels.Online Singapore. This is a major revamp for the site, please feel free to browse around for the latest features.
Please let us know if you find any errors in our web, we will correct them as soon as possible. Please email us for any feedback.
We look forward to your continued support!
Rooms Availability Update (09 Sep 2008)
From the feedback by the hotels, we understand that there are still some hotel rooms available in the month of September in Singapore. As such, if you have not made your booking, please do so immediately.
For the months of October to December, we are expecting very high hotel room demand as many have shelved their plans to visit Singapore in the September due to F1 Singapore. If you have confirmed your visit to Singapore, you are strongly urged to make your booking immediately.
Rooms Availability Update (15 Aug 2008)
In September, Singapore will be hosting the first night race of the Formula 1 racing circuit. As such, there are huge surcharges for rooms during that period. If you require to book rooms during that period, you may book as usual. We will advise you of the surcharges, and if you are not comfortable with the surchages, you are free to cancel it without penalties. *
* Conditions applies. You will be informed prior to us confirming your book.
Latest TOP Offers for Singapore Hotels: (with real time confirmation on your booking request!)
Marina Mandarin Singapore from 187.00 SGD
Sitting on the waterfront at Raffles Harbor guests at this hotel can enjoy either a serene view of the harbor or a spectacular cityscape.
Landmark Village Hotel (formerly known as Golden Landmark Hotel) from 158.00 SGD
Landmark Village Hotel (formerly known as Golden Landmark Hotel) is within walking distance to Bugis MRT Station, Bugis Street, Arab Street, Bugis Village
River View Hotel from 141.00 SGD
On the bank of the historical Singapore River, near Chinatown and only minutes away from the Central Business District and Orchard Road shopping belt
Studio M Hotel Singapore from 162.00 SGD
Studio M is the new urban sleek hotel located at Robertson Quay, featuring all 3m high loft rooms with large bay windows.
Changi Village Hotel from 162.00 SGD
The Changi Village Hotel a soothing sanctuary by the sea is only a 15 minutes shuttle ride away from the Singapore Changi Airport.
The Scarlet Hotel from 170.00 SGD
Situated in the Chinatown neighborhood of Singapore, this property is near Sri Mariamman Temple, Thian Hock Keng Temple and Raffles Place. Additional nearby
Furama RiverFront Singapore from 180.00 SGD
The Furama RiverFront Singapore is conveniently located between vibrant Chinatown and the premier shopping district, Orchard Road.
Carlton Hotel Singapore from 200.00 SGD
The Carlton Hotel Singapore is located just a five minute walk from City Hall, Bras Basah MRT stations, Suntec Singapore International Convention and Exhibition
Orchard Parade A Far East Htl from 205.00 SGD
Located on Orchard Road, a prime shopping, restaurant and entertainment belt, the Orchard Parade - A Far East Hotel is less than a mile from the Orchard
Hilton Singapore from 216.00 SGD
The 24-story Hilton Singapore is situated on Orchard Road, in Singapore's commercial district, and approximately 11 miles from Singapore Changi Airport.
Swissotel The Stamford from 216.00 SGD
Swissotel The Stamford, one of Southeast Asia's Tallest Hotel and Asia's Leading Conference Hotel. Strategically located in the heart of the city amidst
Marina Bay Sands from 288.00 SGD
The Marina Bay Sands situated in the Marina Bay neighborhood, in the heart of Singapore is close to Merlion and Raffles Place, Cavenagh Bridge, and Esplanade
Mandarin Orchard Singapore(previously known as Meritus Mandarin) from 325.00 SGD
A prominent landmark in the heart of bustling Orchard Road, Meritus Mandarin Singapore is an acclaimed five-star luxury hotel boasting world class facilities
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