Classification of Hotels

Classification of Hotels

The hotel industry is so vast and therefore Classification is based on many criteria. Hotels may be categorized upon different factors:

1. 1. Location
2. 2. Size of property
3. 3. Type of Plan
4. 4. Level of service
5. 5. Length of stay
6. 6. Type of clientele
7. 7. Target market
8. 8. Based on theme

Location wise:

• Downtown hotel or City centre hotels: It is located in the heart of city. Tariffs are high due to their location advantage  as these hotels are near corporate offices, shopping arcade, business centre, public buildings etc and also to the fact that rate of ROI calculated on the capital intensive property is considerably high. Normally business clientele are preferred and it has high occupancy on week days. Best example to fit in this category is Hyatt regency New Delhi.

• Motels or Motor hotels: Earlier it was termed as motor hotels now it is known as motels they are located on highways, they only provide lodging to highway travellers that means no food and beverage is served in this type of hotel they guest generally have an overnight stay and these provide more than enough parking spaces for their vehicles. Example: KTDC motel in kerala.

• Suburban hotels: It has very quite surrounding as they are located in suburban areas; the occupancy is generally having high traffic on weekend. Tariffs of these hotel rates are reasonably low and therefore it is perfect for budget travellers.

• Airport hotels: As name says it is situated near by the airport. They have transit guest who stay over between flights for few hours. The guests generally prefer these types as hotel as they have to cut down the travelling hours and have very minimum time just for their work. Tariffs are reasonable here. Example: Centaur hotel in New delhi and Mumbai.

• Floating hotels: These are the type of hotel are generally which floats. These hotels are established on luxury liners or ship generally located on lakes, rivers and sea. These are cruise in this rooms are generally small and all furniture is fixed down. It has long stay guest and have all the facilities which a normal hotel has for example food and beverage services, laundry, bar etc. Travelling is not the main purpose of this ship. Boatels are also a kind of floating hotels they are generally a house boats. They also offer luxurious stay to their guest. Example for floating hotel is Royal caribbean cruise ships and shikaras of Kashmir for boatels.

• Inns: They are located inside or outside the city. They are smaller in size and just have lodging facility. It has reasonably very low tariff and it’s generally for budgeted clientele.  The length of stay is from one to two days.

• Rotels: These are hotel on wheel. These are in form of buses as well as trains. They providing a luxurious hotel atmosphere to the travellers they are like hotel room and have facility of food and beverage.  They are normally used by small group of travellers. Examples are palace on wheels and Deccan Odessey.

• Resorts: These leisure hotels are located at the beaches or in the hills. They are also termed as health resort or beach hill resort and so depending on their position and location. They are for vacationers it generally cater a person who wants to relax, enjoy with their families. They include adventurous trip. Most resort has high occupancy rates during peak season. Sales and revenue fluctuate from season to season. Examples are: Raj vilas jaipur, vanya vilas ranthambore etc.

Size of Property:

The benchmark for the categorization of hotel is by the number of rooms
available in the hotel.

• Hotel which has 25-100 rooms are known as small hotels.
• Hotel which has 100-300 rooms is known as medium sized hotel.
• Hotel which have more than 300 rooms are termed as large hotels.
• Hotels with more than 1000 rooms are known as mega hotels.
• The group that have hotels in many number of location in India and international venues are known as chain hotels. The main hotel chains of India are: the Oberoi Group, maurya shereton, leela palace, ITDC ashoka group, taj hotels and resorts, and some of the international chains are Hyatt regency, Le Meridien, Shangri-La, Marriott etc.

Type of plan:

Hotels can also be classified by the type of plans which they offer. A plan is a combination of room tariff and meals. There are different hotels with different plans. The hotels decide plans according to the type of clientele and their duration of stay. These plans are:

• European plan: Just lodging charges of a room is included. In this type of plan a guest can to eat wherever and whenever he or she wishes to eat.

• Continental plan: It includes room tariff as well as continental breakfast of the guest. This plan is beneficial for business travellers or tourists.

• American plan: It includes room tariff and three time meal i.e. breakfast, lunch and dinner.

• Modified American plan: It include room tariff and two time meal which is breakfast and either lunch or dinner. This plan is beneficial for economic tourists.

Level of service:

This is the most important criteria for classifying hotels. Hotels can be classified into economy, mid market or semi economic hotel and luxury hotels. This is done on the basis of the level of
service they offer.

• Economy Hotels: these are also known as Budget hotels in this hotels guest is provided by a clean and comfortable room with the minimum required amenities.

• Mid market hotels: It offers small living room with appropriate furniture and small bed room with king sized bed they facilities provided in this hotel are swimming pool, health club etc. These hotels are called as suite hotels.

• Luxury hotels: These types of hotels provide world class service to the guest. The room has entire facility with antique furniture and special artwork. These hotels have variety of restaurant and lounges; it even has concierge service and business centre, shopping arcade, sports facility etc. The prime market for these hotels are mainly celebrities, business man, corporate head and high ranking political figures. Example: Hyatt Regency, Mumbai.

Length of Stay:

The classification of hotel is also classified by the length of stay of a guest. It is categorized into transient, residential and semi residential hotels.

• Transient Hotel: Airport hotels can be termed as transient hotels. In this type of hotel the guest stays for a day or even less. The occupancy rate is usually very high.

• Residential hotels: In this type of hotel guest stay for a minimum period of one month and up to a year. The lease is signed with a guest and rent can be paid on monthly or quarterly basis. They room is provided bed room and kitchenette. The tariff is reasonably low in these types of hotels.

• Semi residential hotels: The hotel which include features of both transient and residential hotel.

Type of clientele:

Hotels are categorized into group hotels, commercial hotels and family hotels. This categorization is mainly based on the type of stakeholders.

• Group hotels: these types of hotel generally cater to groups and therefore use American plans. Vacationers are their biggest clientele.

• Commercial hotels: these types of hotel cater mostly to business man and therefore use European plan in their hotels.

• Family hotel: these types of hotels are situated in resort cities and they cater families therefore they use American plan.

Target Market:

• Commercial hotel: they target clientele are businesses men who visit these types of hotels for business purpose. These hotels are located in busy commercial areas especially in the heart of city therefore it gets high business.

• Convention hotels: these hotels are used for conventional purpose. Seminars, conferences, events, education and job fairs, exhibitions, events take place here. They have large convention complex and cater to group of people who are there to attend these events. Hotel with largest convention centre in India is Le meridian, Cochin.

• Suite hotels: These hotel offer compact kitchenette along with rooms. They cater guest who has to stay away from home due to their business they keep on relocating from one place to another. These types of clientele are lawyers and executives.

• Casino hotels: This type of hotel has gambling facilities with guest room, food and beverage. These hotels operate 24 hours a day and 365 days a year. They cater leisure and vacation travellers. Las Vegas in United State is Famous for Casino hotels.

Based on Theme:

• Ecotels: These hotels are eco friendly and amenities provided in these hotels are environmental friendly. Orchid Mumbai is Asia first and most popular five star ecotel.

• Boutique hotels: This hotel offer themed rooms to the guests. They provide stylish accommodation and antique furniture. These hotels cater to corporate travellers. The Park Bangalore is a boutique hotel in India.

• Spas: This is a luxury hotel resort which offer therapeutic bath, massage and therapies along with other hotels offerings. Ananda spa in Himalaya is the most popular Spa.

• Heritage hotel: these are hotels which are converted from heritage properties. These hotels give glimpse of the earlier tradition of a particular region. In this hotel rooms are offered with their history. Traditional cuisine is served to the guest and entertainment is done by folk artist.  Jai Mahal palace in Jaipur.