HOTELS
AND THEIR CATEGORIES
The word hotel is derived from the French hotel, which refers to a French version
of townhouse. British Law defines a “Hotel” or “Inn” as “a place where a
bonafide traveller can receive food and shelter, provided s/he is in a position
to pay for it and is in a fit condition to be received.” Therefore, a hotel
must provide food (and beverage) and lodging to travellers, on payment and has,
in turn, the right to refuse admission if the traveller is unkempt or not in a
fit and orderly state.
With the evolution of hotels and its proliferation
around the world, it is impossible to categorise them under one term.
Therefore, hotels are classified into distinct categories to help the prospective
guest in identifying the right type of hotel matching his standard and
requirement. The criteria on which hotels are classified are exemplified below:
1.)
Size
2.)
Star
3.)
Location
4.)
Clientele
5.)
Level of Services
6.)
Ownership
7.)
Affiliation
8.)
Management
CLASSIFICATION
ON THE BASIS OF SIZE
In this
classification hotels are classified with respect to their number of guest
rooms or the size of the hotel. The size of property depends on the financial
strength of the investor.
Hotels can be grouped into the following categories:
In
India:
Ø
Small hotel: Upto 100 rooms
Ø
Medium hotel: Between 100 and 300 rooms
Ø
Large hotel: More than 300 rooms
In
Europe and America:
Ø
Small hotel: Hotels with less than 100 rooms.
Ø
Medium hotel: Hotels with up to 300 guest rooms.
Ø
Large hotel: Hotels with 300-600 guest rooms.
Ø
Very Large hotel: Hotels with 600-1,000 guest rooms.
CLASSIFICATION ON THE BASIS OF STAR
In
India “Star Rating” is used to classify the hotel on the basis of service
standard. A hotel gets its star rating from the department of Tourism,
Government of India. The department of tourism prescribes the facilities which
are to be provided in various star category hotels. Up to three star levels,
the categorization is given by state tourism and for four star, five star and
five star deluxe hotels, the categorization is given by Ministry of Tourism,
Government of India. An autonomous body (committee) is responsible for star
rating of hotels in India. It is known as Hotels
and Restaurants Approval and Classification Committee (HRACC). Generally,
the HRACC, after receiving an application from hotel owners for star rating,
visits the hotel and checks out the standards and accordingly grades the hotel.
The term for star gradation is for two years. There are six grades of star; 5 star deluxe, 5
star, 4 star, 3 star, 2 star and 1star. The first star is for basic facilities
and every additional star means that you will find extra facilities and
services.
Following
are the members of HRACC:
- Secretary Tourism, GOI
- Regional director of
Tourism, GOI
- One representative
from Federation of hotels and Restaurants association of India (FHRAI),
who is generally the secretary of the respective zone(of the four zones)
- One representative of
the Travel Agents Association of India (TAAI), who is generally the
secretary of the concerned region
- Director of tourism of
the state concerned
- Principal of the
regional Hotel Management Institute
(If
any of the six members is absent on the day of visit, they are permitted to
send their own representatives)
HERITAGE HOTELS
A
recent addition to the hotel industry in our country, heritage hotels are
properties set in small forts, palaces, or Havelis, the mansions or ancient
royal and aristocratic families. They have added a new dimension to cultural
tourism. In a heritage hotel, a visitor is offered rooms that have their own
history, is served traditional cuisine toned down to the requirements of the
international palates, is entertained by folk artists and experience the
glimpses into the heritage of the region.
Heritage hotels are defined as old palaces, havelis etc. converted into hotels without changing the exteriors and with minimum operational changes in the interiors. The architecture of the building should have some heritage value.
Heritage
hotels are put into three categories by Ministry of tourism, GOI;
- Heritage-
Hotels built in residences, Havelis, forts or palaces between 1935 and
1950.
- Heritage
Classic- Hotels built in residences, Havelis, forts
or palaces prior to 1935 but after 1920.
- Heritage
Grand- Hotels built in residences, Havelis, forts
or palaces prior to 1920.
CLASSIFICATION
ON THE BASIS OF LOCATION
The following are the various types of hotels on the
basis of location
a) BUSINESS HOTELS
·
These
hotels are also called as “Commercial hotels”, “City hotels” or “Downtown hotels”.
·
These
hotels are located in the heart of cities and towns e.g. Blue Diamond (Pune),
Oberoi Grand (Kolkata).
·
The
hotels mostly cater to the businessmen, tour groups, individual tourist and
small conference groups.
·
Commercial
hotels provide a wide range of room types such as single rooms, double rooms,
junior suites, suites and other essential facilities such as conference rooms,
cocktail lounges etc.
·
Most
of the commercial hotels have restaurants, coffee shops, business centers with
secretarial, fax, internet and Xerox facilities.
·
Commercial
hotels also offer room services, laundry-valets, uniformed services such as
concierge and transport facilities such as airport pick and drop.
b) AIRPORT/ TRANSIENT HOTELS
·
These
hotels as the name suggests are located in the close vicinity to international and
domestic airports of major cities and towns e.g. Airport Ashok (Kolkata),
Airport Centaur (New Delhi)
·
These
hotels cater primarily to airline passengers with cancelled flights and airline
crew members
·
Generally
the guests in these hotels stay for a very short duration which is usually one
or two days.
·
These
hotels have well furnished guest rooms with restaurants and coffee shops and
offer various other facilities such as airport pick up and drop through the
hotel owned cars and buses which is very important for the passengers and crew
members.
c) RESORTS
·
Resorts
are hotels which are located in exotic locations such as beaches, hill
stations, forests and so on and thus are famous for their scenic beauty. E.g.
Fort Aguada Beach Resort (Goa), Vanya Villas (Ranthambore)
·
The
resorts mostly cater to the leisure travellers, families, holiday makers and
vacationers who visit this special category of hotels to enjoy their vacations.
·
The
resorts provide most of the important facilities to the holiday makers such as
accommodation, food and beverage services, valet services, uniformed services
etc.
·
The
resorts have various recreational facilities such as tennis courts, golf
courses, skiing grounds, amusement parks for children and so on.
·
Thus
resorts are a major attraction for the tourist who enjoy the breathtaking
scenery in which hotels are located
d) MOTELS
·
The
term “motel” is an American concept and has originated from the word “MOTOR
HOTEL”.
·
These
hotels are located on the national highways and other important roads and
mostly cater to the various passer-bys on the highways and specially to the
guest arriving at the hotel by automobiles.
·
These
hotels are not very large and generally have a fewer number of rooms but do
have enough space for the parking of the vehicles of the guest and other
visitors.
·
The
hotels generally provide inexpensive rooms with basic facilities and amenities
and do have food and beverage facilities.
·
They
also provide garages, along with re-fuelling facilities for guest vehicles.
OTHER HOTEL TYPES (Clientele)
Convention
Hotels
·
Convention
hotels are very large hotels especially constructed to cater to the needs of
housing the convention attendees.
·
Convention
hotels have 1000 to 3000 rooms and thus are able to accommodate a large number
of guests coming to attend conventions.
·
Convention
hotels are very common in United States of America and mostly attract the
convention market of regional, national and international associations.
·
Convention
hotels offer a large number of business services to the guests such as
secretarial assistance, fax machines, computers, laptops and so on.
·
Convention
hotels also provide other facilities such as food and beverage service
facilities, housekeeping services and transport facilities.
Casino Hotels
·
Casino
hotels are a special class if hotels which cater to the needs of the guests who
are interested in gambling. E.g. Gamblers Paradise (Arizona, USA).
·
These
hotels are very common in the United States of America and offer a vast range
of gambling facilities, with the casinos of the hotels operating 24 hours a day
throughout the year and these are a major source of revenue for these hotels.
·
These
hotels attract the guest through theme parties and profligate shows and thus
earn a large amount of revenue.
·
Apart
from gambling facilities, these hotels also provide accommodation with
exclusive guestrooms and also provide a large range of food and beverage
service facilities.
Suite Hotels
·
These
hotels according to the name have either all suite rooms or majority of the
rooms are suites E.g. Grand Hyatt (New Delhi)
·
These
hotels cater to lawyers, elite class of businessmen, film personalities,
politicians & various executives.
·
Since
these hotels mostly have suite rooms which have a sitting room and bedroom, the
privacy of the guest is maintained.
·
These
hotels also offer a large number of other facilities to the guests such as food
and beverage services, uniformed services laundry-valet services and so on.
Boutique
Hotels
·
Boutique
hotels are a few small hotels located throughout the country and are targeted
to the rich class of businessmen and vacationers who visit the hotels for
hideaway and getaway. E.g. The Park (Kolkata), The Park (Vishakhapatnam), De
L’Orient (Pondicherry).
·
They
have been categorized as boutique owing to their intimate size, idyllic
settings, highly personalized service, individual size and outstanding
attributes.
·
Each
of the boutique hotels offer a unique vacation experience and highly
personalized service to the guests.
CLASSIFICATION ON THE BASIS OF LEVELS OF
SERVICE
Hotels also
differ in their standards of services and in the facilities which they offer.
Facilities or services of these, establishments can be divided into:
a) Luxury/
Upmarket/World Class Service Hotels
·
These
are the top class hotels which are especially targeted to the elite class of
guests who include commercially important persons, politically important
persons, dignitaries, and ambassadors as well as other famous personalities and
celebrities.
·
World
class service hotels offer excellent accommodation, food and beverage and
uniformed services to the guests such as guestrooms with world class décor and
finish, private lounges and dining rooms along with upscale restaurants,
concierge services, valet parking services, dry cleaning and laundry valet
services.
·
Guestrooms
of these are built in a modern fashion and are all well equipped with all
supplies such as personalized stationery, beautiful sets of bathroom supplies
including shaving sets, herbal shampoos,
soaps, larger sized bath towels, shower caps, bath robes and a large no. of
other amenities.
·
One
of the special feature of these hotels is the “Club Floor” or “Tower” which are
separate floors or buildings constructed for very important guest to provide
them with more comfortable accommodation and more personalized and above all
provide security as these floors or buildings have restricted entry for the
staff as well as visitors to ensure complete privacy to the guests.
·
The
public areas of these hotels are well decorated with exquisite floorings and
furnishings making these hotels a piece of art. There are 24 hrs coffee shops,
specialty restaurants, banquet halls, and conference rooms in these hotels.
·
The
world class service hotels above all maintain a high ratio of staff members to
guests which is generally 1 or even more than that.
·
The
high ratio of staff members to the guests helps them to offer highly
personalized service to the guest ultimately leading to guest satisfaction.
·
Examples
include: The oberoi Udaivilas, Udaipur and ITC Hotel Grand Maratha Sheraton
& Towers, Mumbai are few of the luxury hotels in India.
b) Mid-market/Middle
Class Service Hotels
·
Middle
class service hotels have the largest target market as they cater to the
largest segment of the tourists which consist of businessmen, families and free
individual travellers.
·
Although
the middle class service hotels have a good staff to guest ratio of about 0.75,
they do not offer extremely personalized service to the guests as it becomes an
expensive affair for the guests.
·
The
guestrooms of these hotels are equipped with the basic amenities and supplies
required for a comfortable stay.
·
These
hotels may also offer uniformed service, food and beverage service and
sometimes airport pickup and drop service.
·
These
hotels have 24 hrs coffee shops, restaurants, meeting rooms, banquet halls, and
also some recreational services.
·
The
stays at middle class service hotels are comparatively less expensive than the
world class service hotels.
·
Examples
include: Taj Residency, Lucknow and Trident Hotel, Jaipur in India.
c) Economy
or Limited Service Hotels
·
Limited
or economy service hotels are increasing in no. day by day due to the
requirements of the travellers for cheaper accommodation as compared to the
world class and middle class service hotels.
·
These
hotels mainly cater to the budget minded travellers such as families with
children, retired persons, tour groups, as well as some travelling business people
who require clean and inexpensive guestroom with least amenities required for a
modest stay.
·
The
economy class service hotels have less staff to guest ratio and generally focus
on meeting the most basic needs of guests by providing clean, comfortable, and
inexpensive rooms.
·
These
hotels do not provide elaborate food and beverage service and other types of
services offered in a world class and middle class service hotels.
·
Generally
these hotels offer limited food and beverage service, some basic amenities in
the guestrooms such as linen and soaps and sometimes may have small meeting
rooms for conferences.
CLASSIFICATION ON THE BASIS OF OWNERSHIP OF GUESTS
The following are the various types of hotels on the
basis of ownership of guests:
a) Condominium
Hotels
·
The
concept of Condominium hotels was introduced in the year 1957 in Europe. E.g.
Sea Pines Plantation (South Carolina, USA)
·
According
to the concept of condominium hotels, individual guests are encouraged to
purchase the ownership of the individual units for the entire year.
·
The
guest have to inform the hotel management about the time period of the year
when they would visit and stay at the property and at the remaining time of the
year, the guests can rent their unit through the hotel management.
·
Hence,
in condominium hotels, there is only a single owner for each of the unit or
cottage of the hotel or resort.
·
The
entire concept of the condominium is costlier than timesharing and hence this
concept could attract only few guests and thus resorts using this concept
started incurring huge losses.
b) Timeshare
Hotels
·
The
concept of Timeshare hotels was introduced in Europe in the year 1970 when the
condominium hotels started incurring huge losses and were on the verge of
extinction.
·
According
to the concept of timesharing, individual guests will purchase the ownership of
a particular unit of a resort for a definite period of the year and will occupy
the unit during that period.
·
(E.g.
Mr. Kumar may purchase a particular cottage of a resort for the first three
weeks of January during which he may stay at the cottage. Other individuals
will purchase the ownership of the cottage for the remaining 48 weeks of the
year.)
·
Thus,
in timeshare hotels, there are multiple owners for a single cottage or unit of
a resort or a hotel.
·
The
process of timesharing is far cheaper than the condominium concept and hence
was more popular in the hospitality world.
·
One
of the unique advantages of timesharing concept is that the owners of the units
can easily trade their ownership time with other owners in other locations.
·
In
India, few of the holiday resorts have started the concept of timesharing and
are earning huge profits. E.g. Sinclair’s Resort (Darjeeling)
CLASSIFICATION
OF HOTELS ON THE BASIS OF AFFILIATION
The following are the various types of hotels on the
basis of affiliation:
a) Chain
Hotels
·
The
chain hotels are hotels which are affiliated to one another and are owned or
affiliated with other property. E.g. Taj Group of Hotels, Oberoi Group of
Hotels, etc,
·
The
chain hotels enjoy large economies of scale as:
Ø
All
the properties of the chain enjoy the benefit of advertisement and promotion as
it is the brand which is being promoted rather than the individual property.
Ø
All
of them have management information systems, reservation systems, national
purchasing contracts, and common architectural designs.
Independent Hotels
·
The
independent hotels are hotels which do not have any recognizable ownership and
also do not have any management affiliation like the chain properties e.g.
Bristol (Gurgaon)
·
These
hotels do not have to obey the rules and regulations which the properties of a
chain have to follow to maintain their affiliation.
9.) CLASSIFICATION
ON THE BASIS OF MANAGEMENT
The following are the various types of hotels on the
basis of management:
a) Management
Contracts
·
The
concept of management contract originated in USA in the year 1970 and was
immensely successful thereafter.
·
A
management contract is a contract which is signed between an individual
property owner (who does not have fair knowledge about the management of hotel)
and a hotel management company to run the day to day administration and
management of the hotel.
·
In
return, the hotel management company would get a commission called the
“management fee” which is generally 1% - 8% of the total revenue generated by
the hotel and also sometimes an additional incentive fee which is a percentage
of the net profit generated by the hotel property.
·
Although
a management contract gives total control of the hotel property to the hotel
management company, but the legal and financial responsibilities lie ultimately
with the owner.
·
A
chain acting as Management Company for a particular property has total control
over the standards and quality of each property and these benefits both the
chain as well as the owner.
b) Franchising
·
The
concept of franchising also developed in the year 1960 in USA.
·
In
franchising process, an individual entity builds a hotel property and enters
into an agreement with a hotel company rather than operating as an individual
property. In this case the individual entity is called “Franchisee”.
·
Thus,
the hotel company called “Franchisor” agrees to grant the right to the
franchisee to conduct the business according to the pattern established by the
company.
·
The
individual owner gains a lot from the franchising agreement as the new property
enjoys the name and reputation of the franchisor, receives assistance from the
company regarding the technical know-how to run the property and above all also
enjoys a central reservation system and sales and marketing assistance to run
the property.
·
The
franchisee in return pays a set of fee to the franchisor which includes an
initial franchising fee which is a lump sum amount and then a royalty fee,
reservation fee and marketing fee which are a percentage of the total room
sales.
·
Thus
the process of franchising was extremely successful business strategy in the
world of hospitality.
c) Referral
Groups or Organisation
- The
concept of referral group or organisations was developed in USA in 1960s
by the independent hotel operators in order to compete with the chain
hotels.
- In
referral groups or organisation, the independent hotels join together to
form an association for a common purpose.
- Thus
an independent hotel gained a broader level of exposure and number of
advantages by joining the referral group.
- Through
the referral group, the independent hotel owner could obtain sales
proportion benefits similar to those enjoyed by the properties of a chain.
- By
joining the referral group, the independent had a brand-name image that
could help in the marketing efforts and management of the independent
property.
- The
independent hotel properties of a referral group could also refer business
to each other and thus they help each other in generating revenue.
SUPPLEMENTARY ACCOMMODATION
Supplementary accommodation includes all the
establishments of the unorganised sector of the accommodation industry which do
not provide elaborate services that are provided by the organised hotel
industry; but these establishments provide the basic services of accommodation
and may or may not provide food services and other services.
CLASSIFYING
THE SUPPLEMENTARY ACCOMMODATION
a) Youth
Hostels
·
Youth
hostels generally offer clean and inexpensive shelter to the young people who
are either out for exploring the city and the country or travelling
independently or in groups on holiday or for educational purposes.
Young
Men Christian Association and Young Women Christian Association
·
These
associations run the chain of youth hostels around the whole world.
·
They
provide the young people with the basic facilities of food, clean beds, and the
concept of self service and community life.
b) Caravan
Camping Sites
·
These
hospitality establishments are also called camping grounds or tourist camps or
open air hostels.
·
This
concept of caravan camping sites initiated in the Federal republic of Germany
in the first half of 20th century.
c) Circuit
Houses
·
The
circuit houses are tourist bungalows which cater to the high government
officials.
d) Dak
Bungalows
·
These
establishments are constructed primarily to cater to the needs of the
travelling officials on government duty.
·
These
are small rest houses with a limited number of rooms and are situated in areas
which are important from the point of view of government duty.
e) Dormitories
·
The
dormitories cater mainly to the students of low class tourists.
·
These
are big halls with a large number of individual beds for the travellers.
f) Railway
Retiring Rooms
·
These
rooms are owned by the railways and are situated in the railway stations.
·
This
is a type of accommodation service provided to the passengers holding confirmed
and current reservation tickets.
g) Traveller’s
Lodge
·
These
are modest hospitality establishments situated in the places of tourist
interest.
·
The
rooms of the traveller’s lodges are moderately furnished and may or may not be
air-conditioned.
h) Private
Household
·
Many
people owning houses provide accommodation and sometimes food to the travellers
in return for money.
·
A
substantial number of bed accommodations are provided by the private households
to the travellers.
i) Holiday
and Conference Centres
·
The
Holiday and Conference centres are open to the general public groups.
·
These
holidays and conference centres do provide substantial facilities to the guest
and travellers but these facilities need not to be available for block
arrangements.
m) Forest
Lodges
·
These
lodges are special category of supplementary accommodation and generally cater
to the tourists and travellers on a visit to a wildlife sanctuary and hence are
located adjacent to the forest sanctuaries.
·
They
are so constructed that they provide clear view of the forest to the residents
from the guest rooms and also from the public rooms.
·
The
lodges have a unique ambience which is reflected from the overall décor of
these establishments. But these lodges do not disturb natural habitats of the
animals in the sanctuaries.
SOME
UNUSUAL TYPES OF HOTELS
a) Eco
Hotel is a hotel that has
made important environmental improvements to its structure and overall façade
in order to minimize its impact on the environment. The basic definition of a
green hotel is an environmentally-responsible lodging that follows the practices
of green living. These hotels have to be certified green by an independent
third-party or by the state they are located in.
An eco hotel must usually meet the following
characteristics:
·
Should
depend on the natural environment
·
Should
have ecological sustainability
·
Should
have previous record of contribution to conservation
·
Should
have adequate provision of environmental training programs
·
Should
incorporate cultural considerations
·
Should
have provision of an economic return to the local community
b) Pop-up
hotel is a hotel which is
temporarily established at a location for a short time before being moved. Such
hotels may be built from pre-fabricated modules which are joined together on
site or from collapsible structures such as tents or they may be fully mobile,
being built on a large vehicle.
c) Capsule
Hotel is a type of hotel
found in Japan with a large no. of extremely small “rooms” (capsules) with an
average size of 2m x 1m x 1.25m which are made of modular plastics of
fibreglass. These capsules are stacked side by side and two units top to
bottom, with steps providing access to the second level rooms. Luggage is
stored in a locker, usually somewhere outside of the hotel. Washrooms are
communal and most hotels include restaurants and other entertainment
facilities.
d) Ice
hotel is a typical hotel
which is a temporary structure and is made up of snow, sculpted blocks of ice,
and some steel framing. Their lobbies are often filled with ice sculptures and
food and beverage are specially chosen for the circumstances. All of the ice hotels
are reconstructed every year, and are dependent upon constant sub-freezing
temperatures during construction and operation.
e) Cave
hotels are hotels built
into natural cave formations, some with rooms underground.
f) Underwater
hotels are special hotels
which are constructed under the water and require scuba diving for the guests
to get access to the rooms.
SUMMARY
The hotel industry is so big
and diverse that each hotel has come up with specialty products and services to
carve out a niche for itself. Depending on the services offered, or the clients
they are targeting, or their location, hotels can be categorized variously to
provide customers an indication of their profile and what to expect from them.
The main advantage of classification is that it lends uniformity in services
and sets the general standards of a hotel. Other benefits of the chapter
include giving an idea about the star classification system, where hotels are
rated as one star, two star, three star, four star, five star an five star
deluxe on the basis of services and facilities offered by them. Hotels in the
size category are divided into small, medium, large and very large hotels. The
location of a hotel decides whether it is a downtown hotel, suburban hotel,
resort hotel, airport hotel, motel or floatel. Depending on types of guests
they cater to, hotels are classified as: business hotel, transient hotel, suite
hotel, residential hotel, bed and breakfast hotel, casino hotel, conference
hotel or convention hotel. The duration of guest stay determines whether a
hotel is a commercial hotel, resort hotel, semi-residential hotel,
residential/apartment hotel, and extended stay hotel. The level of services
distinguishes a hotel as up market, mid market, or budget hotel. On the basis
of ownership, hotels are classified as franchise, management contract,
time-share and condominium. Besides these hotels, alternative accommodation may
be found in sarai/dharamshala, dak bungalow, youth hostels, tourist camp,
airport/railway retiring room or paying guests accommodation.