Analysis of Accommodation Services and Industry Contribution

This report provides a comprehensive overview of managing accommodation services within the hospitality industry. It begins with an introduction to the hospitality sector and the accommodation sector's contribution to the UK's GDP and employment. The report then delves into different types of accommodation services, such as hotels and resorts, distinguishing between commercial and non-commercial businesses. It explores various ownership forms applicable to accommodation services, including privately owned, leased, managed, and franchise hotels. Furthermore, the report discusses grading and classification systems like the AA rating system and their role in helping potential guests choose accommodation. Finally, it examines the impact of online review sites, such as Tripadvisor, on guests' booking decisions. The report concludes with references to relevant academic sources and online resources.

MANAGING
ACCOMMODATION
SERVICES

Table of Contents
LO 1.................................................................................................................................................1
Introduction to the hospitality industry and ways in which accommodation sector contributes
to the industry..............................................................................................................................1
Different types of accommodation services found within hospitality sector and
distinguish between commercial and non-commercial businesses 2
Different forms of ownership applicable to accommodation services........................................3
Discussion of grading and classification systems and roles played by them when potential
guests look for and book accommodation...................................................................................4
Role played by online review sites such as Tripadvisor when potential guests look for and
book accommodation...................................................................................................................4
REFERENCES................................................................................................................................6

LO 1
Introduction to the hospitality industry and ways in which accommodation sector contributes to
the industry
Hospitality industry is a kind of service industry that deals in five major service
categories travelling, accommodation, food and beverages, meetings and events. This industry is
one of the main contributing factors in economic development of United Kingdom. Out of all the
five main hospitality services accommodations, travel and tourism, and food and beverage are
major hospitality industry contributors that help in enhancing overall economy of UK. Some of
the top players of this industry are Hilton, Marriott, Hayat and many more. Main objective of this
industry organizations is to generate profit.
Accommodation is a kind of service of providing rooms to people for staying.
Accommodation sector is one of the most common service in this industry, for example: hotels
etc. For example, in 2019 accommodation services in UK contributed by 834 million in GDP.
Not only this, accommodation sector also contributes in providing approximately 15 percent
employment to people of UK.
Figure 1 Turnover of hospitality industry sectors in 2018
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(Source: Accommodation sector contribution in GDP, 2018)
Different types of accommodation services found within hospitality sector and distinguish
between commercial and non-commercial businesses
There are many different kinds of accommodation services that are found within
hospitality sector. Some of them are as follows:
 Hotels: Its is one of the most common type of accommodation. They can be independently
owned businesses or chain of hotels. Hotels are ranked using star rating system and on the
basis of their rating level of service that customers can expect can be identified and analysed.
They provide services like, beds, food and beverages, halls, meeting rooms, housekeeping
services etc.
 Resorts: they are another type of services that are found in hospitality industry. Resorts are
self- contained and provide all kinds of facilities needed and required by customers and are
great holiday destination family members. For example chalets that are typically found in Ski
resorts
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 Hostels are a kind of accommodation services that provide facility of staying to students or
working- class people for longer time period for staying. It is a kind of service in which more
than one people share one room and share a single room for longer time period.
Major difference between commercial and non-commercial business is: Commercial
business majorly work together for generation of profit. They pay taxes for all the money they
have earned. Such kind of businesses majorly focus upon providing high quality service to their
customers in order to enhance their overall satisfaction and generate profit. Whereas, non-
commercial businesses are run and governed by government. Not only this such kind of business
make reserves as well.
Different forms of ownership applicable to accommodation services
There are many different kinds of ownership that are applicable to accommodation
business sone of them are:
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 Privately owned luxury hotels: these types of hotels are owned by a single person but such
kind of hotels might have many investors. Such kind of privately owned hotels focuses upon
providing high quality luxurious services to customers and all the profit is made by owner of
the company and investors might get ROI. For example: Capital hotel.
 Leased hotels: In this private owner of the hotel might lease it to corporation or chain of
hotels. Lessee is always responsible for all kinds of finances of hotel. Owner of the hotel can
agree to affixed amount of rent of fixed percent of rent. So, it can be said that such kind of
hotels are owned by a single person but its finances depend upon lessee.
 Managed hotels: Such kind of hotels are owned by a person who is inexperienced or have
little experience of running a business so in such case they hire a management company to
take over responsibilities and take management decisions but owner might have financial
obligations of day- to- day operations. One of the examples of this type of hotel is Hilton.
 Franchise hotels: it is another kind of ownership in which franchise is given to other
organizations for running business but in this all the amin decisions are taken by owners
only. Travelodge is one of the examples of Franchise hotel.
Discussion of grading and classification systems and roles played by them when potential guests
look for and book accommodation
Granding and classification system is a kind of system in which hotels are classified in
different grades as per type of services provided by them, quality of services and product
provided by them to their customers. There are various kinds of grading and classification
systems in accommodation service such as:
 AA rating system: it is a kind of rating system in which each hotel gets grades starting from
star on the basis of services and quality of services provided by the hotels. For example,
Capital Hotel is a five star hotel. Pricing strategy adopted by each hotel is completely
different which is dependent upon rating given to hotel.
 Official hotel and resort guide: It is another kind of classification system that helps in
determining overall service quality of different types of accommodation businesses.
Role played by online review sites such as Tripadvisor when potential guests look for and book
accommodation
Online review sites play a vital role in hotel business. Online review sites like
Tripadvisor provide customers with a platform where they can share their experience with others
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so that other customers can get to know services of hotel more clearly and hotel management
staff can get to known problems or issues faced by most of the customers or areas in which they
need to bring improvement. It also helps other people to get an overview of hotel or
accommodation, quality of different types of services provided by them, pricing strategy adopted
by them. These online review sites help directly help gust to look for suitable accommodation as
per their needs and requirements like within their budget, needed requirements like pool, meeting
area can be fulfilled in an appropriate manner and they can book hotel accordingly.
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REFERENCES
Books and Journals
Krotofil, J., McPherson, P. and Killaspy, H., 2018. Service user experiences of specialist mental
health supported accommodation: A systematic review of qualitative studies and
narrative synthesis. Health & social care in the community. 26(6). pp.787-800.
Martin-Fuentes, E., and et. al., 2018. Modelling a grading scheme for peer-to-peer
accommodation: Stars for Airbnb. International Journal of Hospitality
Management. 69. pp.75-83.
Xie, K., and et. al., 2020. To share or to access? Travelers’ choice on the types of
accommodation-sharing services. Journal of Hospitality and Tourism Management. 42.
pp.77-87.
Online
Accommodation sector contribution in GDP. 2018. [Online]. Available though: <
https://www.statista.com/statistics/557093/accommodation-business-turnover-by-sector-
united-kingdom-uk/ >
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