HBM 131 1st Edition Lecture 11 Outline of Last Lecture I II III IV Contribution Margin vs Food Cost FOH Front of the House Managing the FOH BOH Back of the House Outline of Current Lecture I II III IV V VI VII Categories of the Industry Lodging Industry Classification Segmentation Revenue Management Senior Living Cruising Facts and Figures Current Lecture Lodging I Categories of the Industry A Hotels and Resorts B Cruise Ships C Senior Living II Lodging Industry Classification A By size the number of available rooms 1 Mega 1 000 rooms 2 Large over 300 rooms 3 Mid size 100 300 rooms 4 Small less than 100 rooms B By class 1 Average daily rate ADR Deluxe upper upscale upscale Mid price w food mid price w o food Economy budget C Rating Systems 1 Worldwide 2 The US Experience III Segmentation A Fairfield Inn limited service rooms only B Courtyard catering to business travelers C Residence Inn extended stay properties D Marriott full service hotels E Ritz Carlton luxury hotels Branding And its PROMISE Rack Rate the normal room rate Revenue Management Distribution channels IV Revenue Management 500 room hotel 396 rooms sold 103 000 00 revenues Occupancy Total Number of Rooms Occupied Sold 79 20 Total Number of Rooms Available Average Daily Rate ADR Rooms Revenue 260 10 Rooms Sold Revenue Per Available Room RevPAR Occupancy ADR 206 V Senior Living A Old Image 1 Smells depressing plain B New Image with a twist 1 Luxury The average age of a senior living resident is 82 85 About only 4 of the population stay in homes Approximately 15 of the world s population is made up of those 65 years of age or older and the fastest growing age group by percentage is made up of those 100 VI Cruising A General Info Carnival Corporation is the world s largest cruise company representing about 65 of all cruising business Italy crash and Mexican Fire The North American cruise industry generated 329 943 jobs that contributed a 15 2 billion wage impact on the U S economy in 2010 a 5 1 percent increase in employment and a 7 0 percent rise in wages over 2009 according to the latest independent study commissioned by Cruise Lines International Association CLIA The total cruise industry economic impact in the U S in 2010 was 37 85 billion of gross output a 7 8 percent increase over last year B Facts and Figures 1 Passengers More than 10 000 000 people take a cruise each year About 80 will do it in North American waters 2 Ports of call There are over 2000 ports of call around our planet that cruise ships can visit 3 Most popular starting ports About half of all passengers on major world cruise lines begin their trips in one of these three Florida ports Miami Port Canaveral and Fort Lauderdale 4 Most popular destination More people cruise to the Caribbean than any other destination in the world 5 Non destination For some cruisers the ship itself is the primary destination not the ports of call 6 Cruise ship population There are more than 300 sea going cruise ships in the world 7 Collective capacity They collectively have room for over a quarter million passengers VII Facts and Figures Continued A Individual capacities 1 The latest super sized ships carry over 4 thousand people counting passengers and crew They would dwarf the Titanic and are as tall as a sixteen story building B Construction cost 1 Those gargantuan ships can cost a cruise line a half billion American dollars before the first passenger boards C The big three 1 Today 3 cruise line groups Carnival Royal Caribbean and Star NCL control roughly two thirds of world s cruise passenger capacity D Travel agents 1 Almost 90 of cruise tickets are sold through travel agents