resort management 1

© 2010, Educational Institute

Chapter 1The Resort Concept

World of Resorts: From Development to ManagementThird Edition

(424TXT or 424CIN)


Nine Types of Lodging Operations

1. Classic hotels2. Resorts3. Spas4. Convention hotels5. Motels and motor hotels6. Condominium hotels7. Residential hotels and service apartments8. Casino hotels and resorts9. All-suite hotels

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Types of ResortsBy seasonality:• Year-round resort• Summer resort• Winter resort

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Types of ResortsBy designation:• Spa resort• Golf resort• Ski resort• Guest ranch• Diving resort• Fishing resort

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• Marina resort• Casino resort• Conference resort• Camp-site• Eco resort• Theme park resort


Types of ResortsBy size:•Mega-resort

• Characterized by size of property and size of investment that reaches billions of dollars.

• 3,000 rooms with multiple golf courses and other recreational facilities.

• Their size requires the entire property to be zoned into smaller geographical areas

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Types of ResortsBy size:•Boutique resort

• Characterized by a smaller level of development

• 100-200 room size. • Despite their size, they can be very lucrative

investments especially those that are classified as luxury botique resorts. (Villa Feltrinelli by Lake Garda)

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© 2010, Educational Institute 7

Types of Resorts

By location:• Urban resort• Beach or seaside resort• Lake resort• Mountain resort• Island resort• Desert resort• Tropical rainforest resort

(sensitive and restrictive)• Farm-related

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By form of ownership:• Conventional• Syndicate• Interval/timeshare• Condo resort• Vacation club• Luxury destination club

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© 2010, Educational Institute 8

Types of Resorts

Others:• All-inclusive resort• Mixed-use resort• Themed/fantasy (storyline)• Floating (cruise ships)

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Types of ResortsAll inclusive

• Total vacation packages that includes transportation to and from the resort.

• Based on the model created by Club Med• All inclusive resorts can be found in Mexico,

Carribean, Bahamas and Bermuda. • Popular with families because of the convenience it

provides.• Costs in this type are all upfront- no hidden charges. • More profitable to sell for TMC’s.

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Types of ResortsMixed use

“A real estate project with planned integration of some combination of retail, office, residential, hotel, recreation or other functions. It is pedestrian oriented and contains elements of a live-work-play environment. It maximizes spaced usage and has amenities and architectural expression and tends to mitigate traffic and sprawl.”

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Types of ResortsMixed use

• These have hotels that serve as the center piece of a customer friendly leisure work environment.

• Attracts offices, shopper traffic for retail stores, buyers for timeshares, players for recreational activities and others for purposes beyond the hotel’s own purpose.

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Types of ResortsThemed Resorts

• Can take many forms but limited by human imagination.

• Can be based on different shows, ideas and themes.

• Storyline resorts are classified under this type. • A story is created which is used as the theme

of the entire resort as it is developed.

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Types of ResortsFloating Resorts

• Includes Cruise Ships, Casino Riverboats or structures over water that are moored or otherwise attached to land.

• Most current cruise ships are floating resorts in the truest sense boasting stacked towers of facilities and accommodations.

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Hotel Classification

• Classified based on: • Price-quality:

• luxury/upscale, midscale and budget/ economy

• Ratings• Varies from country to country

• Location

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Common elements of lodging operation and management

• Basic products are beds and meals• Hotels by nature are labor-intensive• Hotels have buildings and grounds that require

constant physical maintenance and upkeep.• The hospitality and service factor• Common laws of inn-keeping apply equally to all

hotels in the matter of safety and security.

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Characteristics of Resort Operation and Management

• Hotels and resorts operate differently in many important ways:• Differences in markets• Seasonality • Purpose of stay• Space allocation• Facilities design• Recreational provisions and Other amenities• Service expectations• Human resource issues

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• Visitor Market• Caters primarily to vacation and leisure segments of

the travel market and the business-pleasure conventions, meetings and incentive markets.

• Resort visitors are attracted to a resort based on reputation, cultural or scenic attractions in the area, resort recreation activities

• Resort hotels that cater to business travellers schedule meetings that coincide with scheduled recreational activities.

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• Facilities• Resort planning and its facilities focus solely on

pleasing its users. Focus on vacationers who have different needs from business travellers are considered.

• Adequate space is needed inside rooms because of the longer expected stay of those using resorts.

• Some facilities are based on specific activities, and the resorts positioning and market focus.

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• Location• Some resorts are located in remote areas. Because of

its distance from major suppliers, these resorts needs to be self-contained.

• Requires storage facilities for supplies depending on the frequency of deliveries.

• Self contained waste disposal systems are also important to have in place.

• Employment is also an issue for remote locations with no access to local residential communities.

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• Location• Advantages to developing in remote locations

• Cheap land to government interests in tourism development.

• Tax incentives

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• Recreation• The recreational facilities is what separates resorts

from hotels/ accommodation facilities. • Depending on location and capital involved, a resort

can place different facilities based on the resorts target audience and position.

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• Seasonality• Some resorts operate on a seasonal basis. • There are issues involved in this type of operation

• Human resources• Security• Food and supplies• Operating season

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• Service Attitude• The quality of hospitality and the manner/spirit in

which service is delivered often defines a resort. • Service attitude is important in order to satisfy the

needs of your guests.• Resorts provide 24/7 services where quality service is

key. • Resort management is a high touch visible

management- people are always on hand to care, comfort and well being of guests.

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• Managers of Resort Properties• Requires strong social skills to complement the

vacation environment and the hospitable traditions of resorts.

• An understanding of the sports and recreational side of resort operations. Technical property management knowledge is also needed

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• Corporate and Employer Responsibility• Care for the local community and corporate

responsibility should be complementing each other.

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• Employee Housing• Labor Skills

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• Sources of Revenue• Resorts have a lot of sources of revenue as

opposed to other establishments• The F+B outlets, recreational facilities,

accommodation facilities are sources of revenue. • In more recent times, business centers

convention halls and function rooms are also becoming new sources of income.

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Trends for the 21st Century

• Well managed resorts are profitable and often outperform other categories of the lodging industry

• Shifting demographics will be an important factor that shape and favor tourism in the next 20-40 years. Emphasis will be placed on multi purpose properties

• Branded resorts will enjoy greater market reach. Hotel chains with access to large marketing and management systems have clear advantages over independent operators.

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Trends for the 21st Century

• Timeshare, condominium and vacation club properties will flourish due to the attention they get.

• Mixed use and multi functional resorts will be the trend as land becomes scarce.

• Sustainability and green practices will receive greater emphasis among resort developers and operators.

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