HBM 131 1st Edition Lecture 11Outline of Last Lecture:I. Contribution Margin vs. Food CostII. FOH (Front of the House)III. Managing the FOHIV. BOH (Back of the House)Outline of Current Lecture:I. Categories of the IndustryII. Lodging Industry ClassificationIII. Segmentation IV. Revenue ManagementV. Senior LivingVI. CruisingVII. Facts and Figures Current Lecture:LodgingI. Categories of the IndustryA. Hotels and ResortsB. Cruise ShipsC. Senior Living II. Lodging Industry Classification A. By size: the number of available rooms1. Mega (1,000 rooms)2. Large (over 300 rooms)3. Mid-size (100-300 rooms)4. Small (less than 100 rooms)B. By class1. Average daily rate (ADR)-Deluxe; upper upscale; upscale;-Mid-price w/food; mid-price w/o food;-Economy; budgetC. Rating Systems1. Worldwide2. The US Experience III. SegmentationA. Fairfield Inn – limited service, rooms-onlyB. Courtyard – catering to business travelers C. Residence Inn – extended-stay propertiesD. Marriott – full-service hotelsE. 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 revenuesOccupancy = Total Number of Rooms Occupied/Sold = 79.20% Total Number of Rooms AvailableAverage Daily Rate (ADR) = Rooms Revenue = $260.10 Rooms SoldRevenue Per Available Room (RevPAR) = Occupancy * ADR = $206V. Senior LivingA. Old Image1. Smells, depressing, plain B. New Image with a twist1. 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. CruisingA. 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 ContinuedA. Individual capacities1. 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 cost1. Those gargantuan ships can cost a cruise line a half-billion American dollars before the first passenger boards.C. The big three1. Today, 3 cruise line groups (Carnival, Royal Caribbean and Star/NCL) control roughly two-thirdsof world's cruise passenger capacity. D. Travel agents1. Almost 90% of cruise tickets are sold through travel