RESORT MANAGEMENT

Commercial Hotel vs Resort1. Visitor market

No matter how different resorts are from each other, they all seek to satisfy guests who have three fundamental needs:

- Desire for a change of pace, getting away

from the familiar- Desire to satisfy recreational

interests while being entertained and

stimulated- Desire to travel to interesting

and attractive places

2. Facilities- The average length of stay at a resort is

longer than at a hotel, the facilities are

different. - Rooms are larger, more closet space is

needed - Large amount of lands are required for

recreational activities - Guests are looking to participate in a variety of

activities as part of their total resort experience.

3. Location- Guests are attracted to many resorts because of

their remote location.- Many guests travel considerable distances to “get away from it all” or to enjoy an area of natural beauty- The properties must be self-contained- Support services such as laundry and maintenance

must be provided.- Transportation must be provided for employees or

shuttle services to and from the airport to be

provided for the guests.

4. Recreation- Most resorts specialize in one recreational type such as beach activities, skiing and tennis- Must have year-round attractions

5. Seasonality- Commercial hotels operate year-round compared to resorts

6. Personnel Attitude

-Resort guests have extremely high expectations of service- They expect to be pampered- With great pressure on employees to perform

at a high level

7. Managers- Resort managers must have additional

knowledge on two areas:The natural resources on which the

resort is basedGuest activity programming

- Manager of the ski-resort must know something about the mountain

- A resort specializing in golf must be managed by someone who knows the relationship between

golf course layout and profitability.

8. Corporate/Employer responsibility- Many resorts are large and located in remote

areas, they constitute a major piece of the

local economy.- Management takes on a certain responsibility

to the community that goes beyond the

responsibility of a hotel in a metropolitan

area.- The community may be totally dependent on

the resort for its economic future.

9. Employee housing- The remote location means that the resort

may have to provide housing for its employees

- This raises issues of employee privacy and

access to services

10. Labor skills- Employees at resorts tend to rotate into

different jobs both during the season and in the off-season

11. Sources of revenue

- Commercial hotels derived most of their

revenue from rooms, F&B, and various minor

operating departments- At a resort, retail sales are more important as

is revenue from recreational activities- Some properties derive a great deal of revenue

from land sales

12. Activity control

- Accounting statements are more complex in a

resort than in a commercial hotel- Every recreational activity and retail outlet is

a potential profit center, with separate profit

and loss statements

13. Balance sheet- Land and fixed asset investment is greater in

resort than in a conventional hotel which

changes the look of the balance sheet- Large amount of land means the resort has

few alternate commercial uses.- Payback period is longer for resorts because

of the large investment in land and other fixed

assets

14. Resorts and traditions- Traditions are more important for resorts

than for other type of hotels- Many resorts cater to repeat guest who are

attracted by annual festivals and theme

weekends- They come back to enjoy the experience year

after year

Industry Trends

1. Health spa and fitness facilities

2. Sport adventure programs

3. Gaming4. Ecotourism

Mountain-based resortsKey elements in the development

of mountain-based resorts

Physical balanceSize of the ski must meet the needs of

the market without being so large that the area is under-utilized

Size of the mountain dictates number of skiers that can be accommodated

Capacity of lifts bringing people up the mountain must balance with the trail capacity to bring them down the mountain

Capacity indicates the support facilities needed at base and surrounding areas.

 

Economic balanceBrings together the amount of

money invested and the earning capacity of the project.

The quality and quantity of the physical area must be sufficient enough to generate revenue and give investors a return on their money.

Revenue comes from a number of skiers per visit and the length of the season.

Main factors affecting the attractiveness of a site (negative side)

Mix of climate, snow condition, exposure, snow retention and forest cover

No extreme temperatureInfrequent wind problemsDry snow with a minimum of 250

inches

Attractiveness factors (positive)

Forest cover adds to the aesthetics and provides protection from the wind

Terrain should provide viewsSpace at the base is necessary for

aesthetic purposes especially parking facilities (lift system)

Potential length of season

Type of lifts

TowsCable liftsChair liftsGondolas

Gondola

Base area must have:1. ParkingPrivate, public transpo

or on foot 2. Access roadsConsider patterns of

arrival 3. Food serviceRestaurant and snack

bar

 4. AccommodationResort hotels, second

homes, time share 5. MaintenanceGrooming vehicles 6. Emergency careSki patrol