This OER enables you to:
- identify the different types of rates based on the basis of different types of hotels and length of stay
- Relate the rates of the rooms with the types of hotels and rooms
Mr Kumar works for the Anuj Group. He visits the sales department of Eastern Group of Hotels as he has a long list of requirements for hotel accommodation.
Now Eastern Group of Hotels has a number of hotels of various types across the country. They have resort hotels in Goa, Darjeeling and Puri; Business hotels in Delhi, Chennai and Mumbai; a Suburban hotel in Pune and Mumbai; a Motel in Agra.
Ms Rao a representative of Eastern Group of Hotels is given the following requirement by Mr. Kumar:
- A quarterly 2 day sales conference is to be organized for 12 Sales managers of Anuj Group
- The Vice President Operations of Anuj Group has planned a tour of their offices in Chennai, Delhi and Mumbai. The itinerary spans a week, with approximately 2 days in each place
- Anuj Group is planning to send 25 of their most deserving employees with their families on a holiday as a reward
- Mr. Kumar himself is planning to drive from Pune to Delhi via Agra with his wife and 2 children below 12 years. He wants to see Taj Mahal while passing through Agra and needs accommodation for the night.
In the above case deciding the room rates become important. Let's first of all see the types of room rent.
Types of Room Rent:
1. Rack Rate : It is the rate printed on a tariff card. It is the highest equipped rate generally offered to Free Individual Travelers (F.I.T.).
2.Package Rate: This is a special rate which covers all expenses right from airport pick up and drops, meals, room rent, sightseeing etc. These package rates are normally set for a fix period of time e.g. Weekend package, summer package, etc.
3.Off Season Rate: This rate is normally offered in Resorts, where special discounted rates are offered to the tourists during off seasons e.g. Off-season for Simla would be the winter months and off-season for Goa will be the summer months.
4. Employees Rates: In chain hotels, employees may be given discount on rack rates for the hotels belonging to that chain. Employee discounted rates would depend on the availability of space and are generally offered during slack season.
5. Publicity and Promotional Rates: For publicity purposes, influential persons like Company Directors, Top Executives, and Celebrities etc may be given discounts for the sake of publicity. These kinds of persons are known as C.I.P. (Commercially Important Person) from whom the hotel can expect business.
6. Corporate Rates: It is also known as C.G.V.R. (Company Guaranteed Volume Rates). Companies, which give regular business to the hotel, are given special discounted rates, which are known as Corporate Rates.
7. Group Rates: Special discounted rates are offered to groups of guests. Discount percentage would depend upon number of group members.
8. Crew Member discounted rates : For airline crewmembers, discounted rates are offered by hotels based on the contract between Airline Company and the hotel.
9. Extra Bed rates : A fix charge generally one fourth of the room is allowed to permit the extra bed in the same room.
Room Rates based on types of Hotels:
Room rates of different types of hotels are different. Let's see the types of hotels based on Location, size and length of stay.
Any hotel can be named in the category depending upon its location. The main sub-categories of the hotels which falls under the category of locations are (a) DOWNTOWN HOTEL: Its features are: (i) Located in the centre of city at the hub of the business centre and also at the same time near the shopping areas and public buildings. (ii) Provides services like business centre, board room, conference halls, etc which would serve to the best of the needs of the business traveler. (iii) Rates of these hotels are on a higher side. (iv) Business clientele. (b) SUB-URBAN HOTELS: Its features are: (i) Situated at the suburbs therefore is quieter and not very over-congested. (ii) Basic needs are provided to the guests like only one restaurant and not the other facilities like swimming pool, health club etc. (iii) Rates are lower. (iv) Budget clientele, ideal for conferences and seminars because its quieter nature. (c) RESORT HOTEL: Its features are: (i) Located on the hills or at beaches. (ii) Facilities provided are like sightseeing, mountaineering etc. (iii) Rates are seasonal (iv) Clientele is pleasure travelers (d) AIRPORT HOTELS: Its features are: (i) Situated near Airport. (ii) Length of stay would be very short as the guest would normally be transit guests waiting for the next flight. (iii) Normally on European plan (e) MOTEL: Its features are: (i) Motel means Motor + Hotel. Situated at highways. (ii) Good parking facilities. (iii) Length of stay is overnight, generally on continental plan. (f) INN: Its features are: (i) Located in or outside city. (ii) Basic facilities, more stress on lodging and not on food & beverage service. (iii) Rates are moderate.
The capacity of a hotel in terms of number of rooms is the main criteria of this category. Sub-categories are:
(a)Small Hotels:25 rooms and less (b)Medium:25 – 100 rooms (c)Large:101 – 300 rooms (d)Very large: more than 300 rooms
Length of stay
This is a category of hotels in which they are mainly classified or named on the basis of the duration of the stay of the guests: Sub-categories are:
(a) TRANSIENT HOTELS: Where guest stay maximum for one day (b) RESIDENTIAL HOTELS: Where guest stay for long time, may be for 7days or more. (c) SEMI-RESIDENTIAL HOTELS: Staying for 3 – 4 days
Understanding the room rates is important in planning a tour. Room rates depends on various factors like type of hotel, length of stay and number of people who are going to stay.
1. Mr Singh is a Travel Agent and is taking a group of 30 tourists as a part of a group to Goa. a) They will preferably stay in a -------------(resort) hotel. b) They will also get a ----------- (package) rate
2. If you visit Simla in the month of December, what type of rate will you enjoy? i. Rack Rate ii. Off Season Rate iii. Corporate Rate
3. Mr Das is at the airport and his flight has been delayed. The airlines will put him up in an --------------- (Airport) Hotel.
4. Now let us go back to Mr. Kumar of the Anuj Group and the requirement he has given to Ms Rao of Eastern Group of Hotels:
I. A quarterly 2 day sales conference is to be organized for 12 Sales managers of Anuj Group company II. The Vice President Operations of Anuj Group has planned a tour of their offices in Chennai, Delhi and Mumbai. The itinerary spans a week, with approximately 2 days in each place III. Anuj Group is planning to send 25 of their most deserving employees with their families on a holiday as a reward IV. Mr. Kumar himself is planning to drive from Pune to Delhi via Agra with his wife and 2 children below 12 years. He wants to see Taj Mahal while passing through Agra and needs accommodation for the night.
Which of the following would you recommend for each of the requirements? (There could be 2 answers for each situation): a. Downtown hotel b. Resort hotel c. Motel d. Airport hotel e. Suburban hotel f. Package rate g. Corporate rate