Unit 12 Hospitality Report: Accommodation Services Analysis

This report provides a detailed analysis of accommodation services within the hospitality industry. It begins by defining accommodation and its services, differentiating between serviced and non-serviced options. The report then explores the commercial and non-commercial sectors, outlining characteristics like profit maximization and central management. It classifies accommodation based on size, including small, medium, large, and very large hotels, with examples provided for each. Various business models are examined, such as business hotels, boutique hotels, motels, resorts, and green hotels, along with other accommodation types like lodges, villas, apartments, palaces, hostels, and private camping. Finally, the report delves into the different forms of ownership available for accommodation services, including independently owned and operated establishments, offering insights into their operational features and marketing strategies.

Question 1.
Identity the scale and size of the accommodation
services [P1]
What is Accommodation and Accommodation services ?
According to Patrick Landman (2020), “Accommodation refers to a room, building or lodging
which provides shelter for a person to stay, sleep and live. There are many different types of
spaces that classify as accommodation, though in the hospitality industry the term used to
refer to a room at a hospitality company such as hotel, resort, hostel, motel etc.”
According to APAT, the tourist accommodation service is defines as “The provision, for a fee,
of sheltered overnight accommodation in appropriately equipped rooms, including at least a
bed, offered as a main service to tourists, travellers and lodgers. The provision of overnight
sheltered accommodation may include the provision of food services, fitness activities
and/or green arears”.
Different types of Accommodation Services
Accommodation is crucial to any tourists or travellers who want to travel to another
destination or an trip as they are always going to need a place to stay such as Hotels, Guest
houses, camp sites and caravan parks etc. However, Accommodation is split into two parts
serviced and non-serviced which are totally different services that can be seen on picture 1.
1. Serviced Accommodation – It is where there is maid services such as cleaning
rooms, changing and making bed, changing towels and also food and drink are also
served to customers.
2. Non-Serviced Accommodation – It is where customers must do everything by
themselves such as cleaning and cooking non-serviced accommodation provide only
a place to stay.
Different types of accommodation providers
1. Commercial Sector
The main characteristics are:
 Commercial Intention – The establishment must be operated on a commercia basis.
It must possess the characteristics of a business. Which means maximisation of profit
and keep customer needs and wants high to be able to acquire customer retention.
 Multiple occupancy – The establishment provides sleeping accommodation on a
multiple occupancy basis.
 Accommodation is the main purpose – The provision of accommodation in the
premises must ne the establishment’s primary purpose or one of its main purposes.

 Central Management – The establishment has central management to accept
reservations, allocate rooms, receive payments and arrange the services provided
throughout the premises.
 Control – The management must have control of the premises as a whole, whether
or not they own the property or any part of it, and let them in its own right rather an
as agent.
 Services – Services are provided to guests. These may include periodic cleaning,
provision of food, laundering services, telephone and minor services. Other services
include replacing linen and laundry. Where guests are required to supply items such
as towels, linen, or anything else to make the premises fit for accommodation the
premises are less likely to be commercial residential.
 Status of guests – Those being provided with accommodation are guests, boarders or
lodgers who can expect a reasonable amount of privacy from management, their
staff and other guests but not to the same level expected by a tenant.
2. Non-commercial Sector
Non-commercial sector is business’s purpose is not to make profit they only provide only
basic accommodation services. For example, only a place to stay and food need to be made
by themselves rather than for commercial sector.
Diagram 1. Structure of Tourist Accommodation
Source:https://www.locusassignments.com/solution/unit-12-hospitality-provision-tt-sector-
assignment-sample
Classification on the basis of size:

Small Hotels
It is hotels with 25 rooms or less are classified as small hotels and are named Boutique
hotel. For example, Paradise cove Boutique hotel, The Address Boutique Hotel. Moreover
for some prestigious Boutique hotel like Paradise cove Boutique hotel with the level of
service got an award of small luxury hotel of the world.
Medium Hotel
Hotel with twenty-six to 100 rooms is called medium hotels. For e.g., Maritim Crystals Beach
Hotel, Angsana Balaclava, Four Seasons Resort Mauritius
Large Hotels
Hotels with 101-300 guest rooms are regarded as large hotels, like Beachcomber Trou aux
Biches.
Very Large Hotels
Hotels with more than 300 guest room are known as very large hotel. For example, New
Delhi and Leela Kempinski Mumbai.
Different types of Business Models
Commercial Sector:
Hotel
A Hotel is an establishment whose primary business is to provide lodging facilities to
genuine traveller along with food, beverage, and sometimes recreational facilities too on
the chargeable basis. There are different types of hotels like:
1. Business or commercial Hotels
It is designed to cater to the business traveller, commercial hotels are generally situated in
the city centre. These hotels provide high standard rooms and amenities, along with high-
speed internet connectivity, business centres, conference rooms etc. For example,
Labourdonnais Waterfront Hotel. They also provide-in house secretarial services, as well as
facilities such as letter drafting, typing and fax and photocopying of document for the
convenience of guest. Generally, the level of occupancy is higher during the weekends and
slightly lower during weekends. Moreover, the duration of guest stay is generally very short
at these hotels.
2. Boutique Hotels
These hotels are very small and expensive hotels and mainly cater for elite class. They are
different from hotels in that each room has a distinct personality. Though the hotel is small
but still it has a greater number of restaurants. Each restaurant is decorated keeping in view
a theme and food served, the uniform of the staff, the menu even the way of welcoming the
guest commemorates with the theme. Which means that the hotels have the possibility to

make special customer service or personalised serviced from staff of the hotels. For
example, Paradise cove Boutique hotel.
3. Motel
The word motel is formed by merging the words ‘motor’ and ‘hotel’. They are located
primarily on highways and provide modest lodging to highway travellers, A motel offers
facilities such as accommodations, food and drinks, garage facilities, a parking lot, and re-
fuelling for vehicles for vehicles. In Mauritius this type of accommodation is not available in
Mauritius due to size of Mauritius as it is a small hotel.
4. Resorts Hotel
Hotels that are located at tourist destination such as hill station, se beaches and country are
referred to as resort hotels. These hotels have a very calm and natural ambience. They are
mostly away from cities and are located in pollution – free environs. The room rates in these
hotels may range from moderate to high, depending on the additional service offered.
These hotels combine stay facilities with leisure activities such as golf, summer, and winter
sports etc. The occupancy in resorts in resorts is normally higher during vacation time ans
weekends when guests want to take a break from their weekly routine. For example, LUX
Belle Mare Resort & Villas, Shangri-La’s Le Touessrok Ressort & Spa.
5. Green Hotel
Green Hotels are environmentally friendly properties whose managers are eager to institute
programs that save water, save energy and reduce solid waste. The basic definition of a
green hotel is an environmentally responsible lodging that follows the practices of green
living. But now, most of prestigious hotels around the world adopt an eco-friendly
alternatives and solution to save the planet. For example, Four seasons Hotels & Resorts
adopt lot of eco-friendly practices like Change of linen is less frequent, chemical dispenser,
Device to switch off when they open the door of terrace.
Other types of Accommodation services:
1. Lodge
A lodge is an accommodation facility which is locates and designs to optimize the feeling of
being in touch with nature. The building style should feature materials and colouring such as
wood, stone and thatch. An outdoor experience should be offered at the lodge. For
examples , Bubble lodge Ile aux Cerfs island at bubble lodge they have access to a private
beach and completed with a private furniture landscaped garden. These unique designed.
Bubble are mostly for eco-friendly customers and adventurers
2. Villa
Originated in Roman times, a villa is often described as a luxurious country residence. It is
available for all people renting villas for their accommodation in Mauritius, it is possible to
choose to rent a villa on self-catering basis, with some basic services or alternatively choose
for an all-inclusive basis including range of indulging services.

3. Apartment
Also known as flat (British), an apartment is a self-contained accommodation unit housed in
a building containing several such units. This type of accommodation is like a traditional
hotel but with added space, convenience, and privacy like home, so customers are being
able to enjoy living like a local when travelling. It is generally self-catering accommodation
or upon request it can be a serviced catering.
4. Palace
Unlike castles, palaces are not fortified, but they still are royal residences characterized by
an exceptional level of grandeur. Some of the most spectacular palaces converted into
luxurious hotels can be found throughout Asia and Europe, especially India and Italy.
Non-commercial sector:
1. Hostels
It is an accommodation services that provides inexpensive food and lodging for people, such
as students, workers, or budget travellers. Moreover, they often provide shares
accommodation. Other facilities such as bathrooms, kitchens and living arears are also
commonly shared with other guests.
2. Motels
A motel is basically a hotel room with a parking space. It is popular generally in the USA and
we do not have it in Mauritius as Mauritius is a small country. Motels usually offer simple-
room-only accommodation, but some may have simple cooking facilities. Motels are
generally here not to make enormous profit they provide only basic facilities. The types of
customers they accommodate are generally customers that are driving for a long distance
and just want to sleep to start to drive after to go their destinations.
3. Private camping
It is a source of accommodation where the customer pays a place on a site of camping.
Customers, who likes adventure and that want to connect with the nature. It is one of the
cheapest types of accommodation, especially if the customer has their own tent. All they
need is to pay for the spot on a camp site.
4. Caravans
Caravans can be transported from place to place, or they can be situated in one location.
Caravan parks are very popular. Most are located close to the seaside. Some caravan parks
are part of well-known holiday parks.
5. Hospital
As mentioned before, as it is an organisation that are here to not maximise profit. Hence,
this is why hospital is a non-commercial sector as they provide for ill patient the basic need
of the customer by providing them a room and food and beverage. Example of hospital are
Wellkin.

Explain the different forms of ownership available for
this type of accommodation services[P2]
Ownership and affiliation
There are different kinds of ownership that can used to run the new accommodation. All
forms of ownership operate differently and have their own features. The ownership used
must be in accordance to with the size and type of the accommodation chosen. The
ownership used might plays a crucial role in the success of an accommodation. These are
the types of ownership:
1. Independently owned and operated.
This form of ownership will able the business to operate and run alone where the owner will
not allow any others shareholders to take the brand, name, slogan, and logo of their
business or company. It can family-owned business. This business can also be called
‘voluntary chains’. Their targets are to focus on quality, standard to maintain a strong brand
name. So this kind of ownership usually make powerful marketing for example persuasive
marketing(making use of powerful message to catch the attention of customers), the pricing
strategy (dynamic pricing during peak and off peak season or variable pricing) and the
appropriate promotional strategy ( pay for 6 night and getting the 7 night free). This type of
business usually customised type service and is free to do whatever they desire (taking into
consideration the customers preferences for example for the wedding event special
treatment can be provided for the spouses such as free photo shoot at the heart of the
beautiful scenery of nature).
Examples of an independent hotel:
 Tamarina Golf & Spa Boutique Hotel
 20 Degres Sud
 Seapoint Boutique Hotel
 Seasense Boutique Hotel&Spa
The advantages of being an independent owned accommodation
 This kind of business is flexible which meaning that they have the tendency of being
responsive to the dynamic change of the market. This will allow the business to
detect the positive and negative aspects that should be tackle or improve. This might
result in the less wastage in terms of money, labour and a better management
leadership of the hotel as well as span of control which obviously wide.
 Close contact with the customer. Operating as independently owned business will be
an advantage as there is unique customer relationship; the organisation will be able
to know the exact customer preference. So will result in the level of satisfaction and
repeat business because of loyal customer.

 The uniqueness and authenticity of the business. The product portfolio of the
independent owned is unique. Since the product is unique, the business will be at
ease to offer a niche product and target a specific type of customers. This can add
value to this type of hotel as well as gaining recognition.
 Moreover this type of hotel has a financial autonomy meaning that they don’t have
any financial aspect compared to chain group that requires a minimum level of
finance to operate. Normally a hotel chain requires a certain amount of revenue and
profit to grow to finance the other hotel chain. For an independent hotel own
decision will be base on its abilities to undertake the work.
The limitations of an independent hotel
 It does not have the support from other businesses which include the marketing
support since independent hotel are alone they have much power and influence of
customers. Leading to emphasis on much marketing which then create an additional
expenses of the hotel.
 Limitation of agreement with travel agents and OTAs-Online Travel Agency. The
promotion of the hotel thought this means will be ineffective as the customers will
be aware about the existence of the hotel.
 Diseconomies of scale as there is no standardisation when offering product or
services so the hotel will not be able to buy bulk purchasing so this might result in an
increase in the cost of the hotel.
Conclude; maximise the advantage and to differentiate themselves, the independent hotel
in small accommodation such as B&B, Hostels, Cottages and small hotels
2. Chain Hotel Management
In this type of ownership include a hotel to form part in of a chain group which can be
situated in different area in the destination ex in Mauritius the group Sun resort possess 5
magnificent hotel two of them are Sugar Beach located at Flic enFlacWolmar and Long
Beach located at Quatre-Cocos. In this particular ownership, the head of the group tends
more to impose a minimum standard and is stricter compared to the independent owned
properties concerning abiding to the rules and procedures. Some owners might be involved
completely in the business or some might be involve partially. They have to manage the
administration, marketing and promotion aspects of the firm. Perhaps this type of
ownership might tackle a mass market customer with a standardised service.Moreover it
will be easy to implement new trend such as mobile app and QR code can be used for pre,
during and post stay, and simultaneously useful during the Covid-19 as the have the finance
required to implement it. The hotel chains can be operated in two forms:
a. Management contact
b. Franchise

The advantages of chain hotel
 This kind of hotel enjoys a high volume of sales. The hotel will be able to enjoy
economies of scale which means that the average cost of the hotel will be lowered
because discount gain when buying in bulk. In addition to that more type customers
are being targeted as resources are being providing to be able to deliver service.
 The hotel chain usually have their own marketing (costly marketing to crate
customer awareness) and public relation offices to manage the advertising part, the
communication and of the entire chain to enhance the reputation and recognition.
The marketing used might be much effective due to the large investment of capital.
 Larger the hotel is the more negotiation power with travel agent and online travel
agency. So hotel will be able to gain more recognition. Agreements: Larger hotel
chains have a better negotiation power against the TOs and online travel agencies.
The disadvantage of hotel chain
 Lack of independent meaning that if one particular hotel want to make a change
(perhaps for stimulating demand); it will be impossible for the hotel to make it as
the shareholder might not agree with that. They have an upper hand on all the
hotel chain so they make their own management control and planning of their
hotel chain. The hotel chains are dependent on the owners they have much
freedom they much abide to rules regulation and standard set by the owner.
There is no uniqueness of product.
 Furthermore, the decision making takes too much time due to long chain of
command, this type of organization has a tall structure which means that all
decision making or communication will be slow down so this can lead to problem
in quality as well as employees morale can be lowered as they will not be able to
complete their task during this process. They should wait of the decision and
then continue their task.
Example of hotel chain management
 LUX Collective
 Constance Hotel Mauritius
3. Management contact
The person who owned the property has a contact with a company to operate. It happens
that a famous chain may set up new premise and has upper hand on it while negotiating for
a local firm to run the business. In some case local investors can invest money in concerning
the building up of an accommodation and at the same time have working with famous
groups such as Ramada or Marriott, to supervise the operations. In both cases, there is

profit sharing. There’s no need for the accommodation provider to build up reputation as
the famous groups have already done the work as well as the investment for development.
The advantage of management contract
 With this type of ownership, the business will be able to save time and resources.
The firm will be able to concentrate on marketing and another development.
Moreover, the specified purpose of the company can be managed by the
management contract company at the same time the company will have and upper
hand on its assets (money, time).
 Operating in a contract management can lead to a continuity of the company. If ever
the company change manager for any reason like fraud, theft, retirement, will no
longer have an impact on the company as the standard implemented at the
beginning of the deal will be the same. The way of managing or dealing will be the
same thus; there is no need to worry about the capacity (in term of success) of the
company.
 Furthermore the company will receive skills and experiences. The company will be
assisted if ever the company have some problem in management aspect. Moreover
the assistance provided is more likely to be professional one. The company will be
able to concentrate on things where they perform better. Thus will lead to better
profit and better way managing the financial part of the company.
The disadvantages of management contract
 However the operational running of the business will be managed by the
management contract company. This obviously means that the company don’t have
any control over operational aspects of the company.
 Conflict of interest is also one of the disadvantages of work with a management
contract company. They often bargain with competitors leading to conflict of interest
in addition that large management company which deals with them. The objective of
making profits usually make them affiliate with other company
4. Franchise
A franchise is a legal license give to the franchisee. It’s the franchisor who gives the
permission to make use of brand name by franchisee to be able to operate. The first
franchise has begun when the Ritz Development in New York City franchised the Ritz-
Carlton. However it may happen that franchise business has different name from the
franchisor but the concept is still the same. The accommodation provider will have to
royalty fee to obtain the brand name license, the training, the infrastructure. The franchisee
can the independent, partnership or even a small corporation or group of investors.
Therefore if hotel have Holiday Inn, Sheraton or Hilton symbols are managed by local
independent investors. The firm will of course need to run in accordance with the franchisor
guideline so no freedom. Furthermore the brand name is already established in addition to
that there’s no need for strong marketing or advertising.

The advantages of franchise (franchisee)
 Less risk when starting up. The company will work with organisation that has already
been successful. The franchisee will no longer need to work hard on establishing the
reputation therefore the franchisee business will save up on resources and money.
 The marketing have already done so the franchisee business does not need to make
the marketing aspects of the company. The marketing undertaken are very strong
and have great impact on the customers. Both persuasive and informative
advertising have used to stimulate and create customer interest as well as
appropriate pricing strategy and promotional strategy have to used to for customer
satisfaction and loyalty. This means that the awareness part has already been
completed.
 Moreover finance assistance is being provided. Franchise does provide funds for
huge project with required high investment. If ever the franchisee want to invest on
new project for example on new software concerning reservation. The franchisee
may have interesting plan (innovative ideas) for the success of the company but does
not have enough capital to start. It is more likely seen as a helping hand.
The disadvantages of franchise (franchisee)
 However being a franchisee will also mean that the business will have to pay a
license fee which is also called royalties fees. It is more likely to be fees for
membership. The fees collected by the franchisor will enable them to build another
company or to finance their transaction in addition to that the fees can very high and
at the same the franchisee will to share profit with the franchisor.
 There is lack of freedom and independence when operating as a franchisee. Taking
the example of the marketing aspects, it has been already done by the franchisor.
Suppose that the franchisee have different marketing strategy which can much
better than the franchisor but unfortunately the franchisee must stick to marketing
strategy of the franchisor. The franchisee cannot create own reputation but be in the
shadow of the franchisor. Like all agreement there certain rules and regulation that
should be followed.
Advantage being a franchisor according to Carlos Garcia
 Expansion can be more rapid because the franchisees provide manpower that might
be experience enough to provide a quality service. This might be obviously be
possible due to training that have been provided to them initially, perhaps the
franchise business makes better use of the training obtained. This can lead to better
customer satisfaction hence, increase in the sales. The expansion will be more
quickly due to amount of cash received. Both franchisee and franchisor will benefit
from expansion: gain more recognition, better training and raw material and so on.

 The franchisor can receive high royalty fees (it is a percentage of sales that should be
given to the franchisor) because of successful location or quality product and
services offered. This means that if the franchisee business is located in a strategic
area the level of arrival will be high for example a hotel which located near the
beach, so this will automatically attract the customers. Moreover if the customers
have been satisfied with the way that they have been treated this will eventually
lead to a customer satisfaction as their needs and wants have been corrected meet.
Therefore will be higher sales if of course the hotel offer a quality customer service
consequently this bring a high amount of royalty fees that must be given to the
franchisor.
 Since the franchisee is responsible for their success they will be more motivated to
perform better so the franchisor can rely on them a bit for the success of the
business. This so means that it is not to absolute control, so this allow the franchisor
to concentrate on other issues or even to think about an innovative to function for
business success as there is a tendency of change in attitude and taste among
customers.
Disadvantages of being a franchisor according to Carlos Garcia
 However if the franchisor has chosen the wrong franchisee this might bring to
negative reputation due to the brand that that are the same, the amenities, the raw
material and so on. Their reputation might be at sake and can lead to decrease in
customer satisfaction as a reason of poor performance thus leading to a decrease in
sales.
 The franchisor may have less control over the franchisee as they are not as much
closer than the manager and its subordinates. The franchisee may have their goals
and visions, mission so it is very difficult to control or obtain the same performance.
This can also result to a gap in the way of functioning. Sometimes this can be useful
for certain business but useless for other business.
Example of Chain hotel management including franchises and management contact
 Hilton
 Hyatt
 Marriott
 Starwood
 IHG

5. Referral group
This ownership consists of self-govern hotel groups which have together an alliance and
work for the same purpose. The firm will be able to work freely and apply their own way of
managing as in referral groups the system is not exactly the same but the quality to exceed
customer satisfaction must be consistent. The best example of referral group is the Best
Western Int.Hotel. The company will be able to flexible when operating and will benefit
from costly reservation and advertising.
Advantages of being a referral group
 The independent have been affiliated together for the same purpose. This will lead
to less competition among the hotel; they prefer to help on financial aspect or
management purpose. Moreover outsourcing will be allowed i.e. if hotel can
outsource the room available from another hotel due to 100% of occupancy or
overbooking. It really acts as a helping hand where they can reach their goals
together.
 There will be a main purchasing service meaning that there will be only a central
supplier concerning the amenities, linen, and towel and restaurant ingredient. This
means that the quality of material at the beginning will be of quality if of course the
supplier is trustworthy and reliable. This will therefore increase the standardisation
of the product so will stimulate the customer interest concerning the Referral group.
 The hotel referral will not be duplication but offer the same level of service which
can operate differently. This clearly means that the hotels which form part in the
referral group are free to operate as they wish without any competition among
them. It should be noted that if a member of the referrals groups want to implement
a change they can undertake it provided that the service should more or less remain
the same.
Disadvantages of referral group
 The members of the referral group will need to abide to some standards. This means
that they will not be able to do benchmark in relation with the service that luxury
hotel are provided. It may happened that the referral not located the in same area,
country or region, the way of delivering service might be different it may varies
according to demographic or even geographic. So this may lead to decease in
customer satisfaction thus decrease in sales.
 Being member in a referral group doesn’t secure hotel position forever. If a member
of the group doesn’t not abide to some requirement or meet deadlines concerning
the payment, the group can decide to make the member quite the group. Some
requirement might not always be favourable for some members but they should
imperative abide and pay. The level of freedom is not what it looks like as like it is
said in the paragraph there are requirements that should be abide.