Presentation for the 1st semester students of hospitality schools.

2. Welcome to a
new learning
session!
Knowledge is Money.

3. Classification Of Hotels:
First Semester

4. ISBN printed version: 978-92-844-1663-9
ISBN electronic version: 978-92-844-1664-6

5. Hotel and Classification of Hotels

6. What is Classification? Why we classify
things?
• Classification is a method of grouping, in
which we place similar things together in one
group.
• Example: Arrangement of books in a library is
an example of classification.
• In a library, books on the same subject are
kept in one place, so that it will not be difficult
to locate them.

8. What is a Hotel?
• A hotel is an establishment that provides
paid lodging on a short-term basis.
• Lodging is accommodation, or a safe, clean
place, either room, dormitory, villa, or an
apartment; for an overnight stay, provided
only to genuine travellers.
• https://en.wikipedia.org/wiki/Hotel

10. Hotel: Etymology
• The word hotel is derived from
the French hôtel (coming from the same origin
as hospital), which referred to a French
version of a building seeing frequent visitors,
and providing care, rather than a place
offering accommodation.
• Hostel is another word closely related to the
hotel & hospital.

12. Recorded History: Hotels
• The early version of the modern hotel was
the inn of medieval Europe.
• For a period of about 200 years from the mid-
17th century, coaching inns served as a place for
lodging for coach travellers.
• Inns began to cater to richer clients in the mid-
18th century. (Grand Tour Era)
• One of the first hotels in a modern sense was
opened in Exeter in 1768.
• Hotels grew throughout Western
Europe and North America in the early 19th
century, and luxury hotels began to come up in
the later part of the 19th century.

16. First Modern Hotel
• The Royal Clarence Hotel is a hotel
in Cathedral Yard, Exeter, Devon, England. It is
often described as the first property in
England to be called a hotel; however, The
German Hotel, London, was described in this
way in 1710, so it is probably the second.
• Since 2005 the 53-bedroom hotel was
branded as ABode Exeter.

18. Why Hotels need To Be Classified?
• Hotel operations differ in size, function,
complexity, and cost.
• This is due to the different types of travellers,
who have differing purposes of travel, needs
and spending power.
• Most hotels and major hospitality companies
have set industry standards to classify hotel
types so as to honestly inform the travelling
community.

23. How classification helps hotels?
• In addition to providing comparable, competitive
information through easily communicable
symbols (e.g. stars, diamonds, ratings) and
serving as justification for rates, classification also
provides hotels with a benchmarking tool, which
in turn can help them to identify areas of
weaknesses, strengths & investments.
• Areas that guests value more receive more
attention and money.

25. How classification helps hotels?
• Providing a common framework for all
intermediaries, such as tour operators and
travel agencies, to use it in their purchasing
processes and negotiations, preparation of
catalogues and customization of packages
offered.

26. To measure quality of something, it
must be quantified somehow.

27. How to measure quality of goods &
services?
Identify aspects that are measurable or
describable. For example, shape, size,
area, colour, texture, odour, volume,
weight, time, temperature, density etc.
Decide on a value (quantity) that is
considered to be acceptable to buyer as
well as seller.

28. How classification helps hotels?
• Providing a reference point for online guest
review platforms, by placing the reviews
within an appropriate context.
• e.g. A review in a one star hotel is likely to be
based on different set of expectations from a
review of a five star hotel.
• This protects the hotel from unfair criticism
and blackmail.

29. These Are The Best Hotel Review Sites
In The World
• TripAdvisor (24%)
• Google (9%)
• Trivago (8%)
• Booking.com (5%)
• Facebook (1%)
• Oyster (less than 1%)
• None of the above (53%)
• https://www.forbes.com/sites/christopherelliott/
2018/09/09/these-are-the-best-hotel-review-
sites-in-the-world/?sh=61a26f187fbd

32. How classification helps hotels?
• Serves as a marketing and promotion tool.
• By displaying their stars, hotels are in effect
promoting their specific characteristics and
additional services, within the framework of the
relevant classification system followed in their
country.
• In this light, governments will often reform their
classification systems in an effort to upgrade the
quality of their national tourism offer.

37. How classification helps hotels?
• Providing the hotel profession with an easy-to-
understand guidelines, that makes it possible to
evaluate in a consistent manner; a highly diverse
range of accommodation types, many of which
are microenterprises (homestays, BnB).
• It helps the business owners to know exactly who
and where are their competitors!
• This clarity protects the employees and managers
from unfair criticism and disciplinary actions.

39. It is common
knowledge in the hospitality
industry that the luxury of today
is merely the expectations of
tomorrow.

43. Benefits Of Classification
Hotel
Travellers
Intermediaries
Destinations

44. Travellers & Intermediaries
• As most hotels rooms are booked by first time
travellers, without being physically seen or
experienced; travellers and travel intermediaries
such as, travel agents, tour operators, event
planners, corporate managers, airlines, cab
companies etc. demand a reliable indicator of the
(quality & quantity of) standards available in the
hotel.
• They also wish to have the claims of standards
guaranteed by a dependable body, like
Government Ministries & ISO auditors.

45. Write a note on functions of the
Government;
• Government is the authority or force that
regulates on behalf of a community of
citizens. Every country in the world has its
government.

49. Destination Marketing
• Tourist destinations have to be promoted to
attract a critical (sufficient) mass of travellers that
would help sustain the local economy throughout
the year.
• Quality standards in accommodation sector helps
the destination marketers in telling the future
visitors in advance; on what facilities and level of
service delivery can be expected, to reduce the
gap between “experiences” & “expectations” of
the users.

54. Classification is also known as;
• Rating, Star rating
• Diamond rating by AAA, USA
• Ranking
• Grading

56. Sovereign Government’s Role
• Involvement of the Govt. in classification
process helps to deter (discourage) the crooks
and cheats from entering this very critical
sector of the economy.

58. Challenges In Hotel Classification
• Large variety in types of hotel rooms
• Different rating systems of Online Travel Agents
• Different rating systems and nomenclature
followed by countries
• Different guest review sites and terms
• Different purposes of travel
• Differences in the economic, social, cultural and
political environment of destinations located
world-wide and
• Diverse personal background of travellers
• Constantly evolving nature of customer
likes/dislikes and behaviour

60. Traditional classification systems:
• These consist of mandatory (must have)
objective criteria, sometimes in combination
with additional desirable (voluntary) criteria.
• The fulfilment of the criteria is checked by
auditors or inspectors. Site inspections are
performed by qualified inspectors.
• Germany (HotelStars Union) and India are
among the nations using the traditional
system.

62. Hotelstars Union
• Under the patronage of HOTREC – the umbrella
association of hotels, restaurants and cafés in
Europe – the Hotelstars Union was created in
2009.
• Austria, Belgium, Czech Republic, Denmark,
Estonia, Germany, Greece, Hungary, Latvia,
Liechtenstein, Lithuania, Luxembourg, Malta,
Netherlands, Slovenia, Sweden and Switzerland
are Members of the star family. Their partnership
is providing a harmonized hotel classification with
common criteria and procedures in the
participating countries.

64. Classification systems with ISO
certified inspectors:
• The French classification system consists only
of mandatory criteria and is, in this regard,
similar to traditional systems.
• Inspections are carried out by accredited third
party inspection bodies.
• Third party means someone other than the
Government agencies and the hotel itself.

67. Classification including quality
assurance:
• The hotel is not necessarily awarded for the
number of facilities, but rather for the quality
of those services offered.
• The control is exercised by advisors
(assessors), who guide hoteliers to improve
their product.
• Scotland, Iceland and Australia are among the
countries that include the quality element in
their classification.

69. Classification systems including guest
reviews:
• Central to these systems is the inclusion of
guest reviews in addition to mandatory
criteria.
• The hotels are controlled through inspections
on all criteria.
• Norway previously included guest reviews in
the total evaluation and Abu Dhabi has
recently launched classification system
incorporating guest reviews.

74. Trust based systems:
• Such systems are used, for example, in
Slovakia and consist of one set of criteria,
where the hotels themselves evaluate their
compliance with the criteria, without any
audit or control.

77. Australia: Implementing
organization
• Star Ratings Australia on behalf of the
Australian Auto Clubs
• Nomenclature: One to Five Stars
• ISO / Independent quality assurance:
Accommodation Association of Australia, as
well as a dedicated Industry Advisory Board
and Industry Advisory Panels for each rating
category.

79. India: Implementing Organization
• A voluntary system implemented by the Hotel
and Restaurant Approval and Classification
Committee under the auspices of the Ministry
of Tourism and Hotel Associations
• Nomenclature: One to Five Stars plus Five Star
Deluxe
• ISO / Independent quality assurance: No

81. Top 5 recurring factors of classification
world-wide
1. Room
2. Bathroom
3. Services
4. Food & Beverage
5. Front Desk services

82. 1. Room

83. 2. Bathroom

84. 3. Services

85. 4. Food & Beverage

86. 5. Front Desk services

87. Some Unique Concepts
• In German system, word ‘superior’ is
permitted to be added to the classification
rating when it falls just a little short of the
next higher category.
• ‘Garni’ indicates a hotel that only provides
breakfast services and no other major meals.
• ‘Mystery guest’ are sent to check the
standards often.

89. Hotel Typology

90. What is Typology?
• a classification according to general type,
especially in archaeology, psychology, or the
social sciences.

91. Hotel Typologies
TYPES
OF
HOTEL
Based on Location
Based on Ownership and Affiliation
Based on Star rating
Based on Theme
Based on Level of Service
Based on Length of Stay
Based on
size
Based on
Target
Market

92. Based on Location
1. Downtown
2. Suburban
3. Airport
4. Resort
5. Motel
6. Floatel
7. Rotel

93. Based on
Location
City center/Downtown :
Generally located in the
heart of city within a short
distance from business
center, shopping arcade
entertainment venues etc.
Rates are normally high
due to their location
advantages.
They have high traffic on
weekdays and the
occupancy is generally
high.
Example: Taj Mahal,
Mumbai

95. Based on
Location
Motels: They are
located primarily on
highways, they
provide lodging to
highway travelers
and also provide
ample parking
space. The length of
stay is usually
overnight.
Example: KTDC,
Kerala

97. Based on
Location
Suburban hotels:
They are located in
suburban areas,
and generally have
high traffic on
weekend. It is ideal
for budget
travelers. In this
type of hotel, rates
are moderately
low.

99. Based on
Location
Airport hotels:
These hotels are
set up near the
airport. They have
transit guests who
stay over between
flights.
Example: Centaur
hotel , New Delhi

102. Based on
Location
Resort hotels: They are
also termed as health
resort or beach/hill resort
and so on, depending on
their position and location.
They cater to the persons
who want to relax and
enjoy themselves. Most
resorts work to full
capacity during peak
season. Sales and revenue
fluctuate from on-season
to off-season.
Example: Oberoi Raj Vilas,
Jaipur

104. Portmanteau, English Vocabulary
• A portmanteau is a word that is formed by
combining two different terms to create a new
entity (word).
• Through blending the sounds and meanings
of two existing words, a portmanteau creates
a new expression that is a linguistic blend of
the two individual terms.

105. Examples of Portmanteau
• Bollywood (Bombay/Hollywood): The Indian
movie industry.
• Brunch (breakfast + lunch): A meal that is
eaten after breakfast but before lunch.
• Edutainment (education/entertainment):
Games or other forms of entertainment that
have an educational aspect.

106. Portmanteau in Hotel Industry
• Motorway + Hotel = Motel
• Rotating + Hotel = Rotel
• Boat + Hotel = Boatel
• Floating + Hotel = Floatel
• Ecology + Hotel = Ecotel
• Stadium + Hotel = Stadel
• Condominium + Hotel = Condotel

107. Based on
Location
Rotels (Rotating Hotel):
These novel variants
are hotel on wheel
(train). Our very own
“Palace On Wheels" and
"Deccan Odyssey" are
trains providing a
luxurious hotel
atmosphere. Their
interior is done like hotel
room. They are normally
used by small group of
travelers.
Example: Palace on
wheels

110. Based on
Location
Floatel (Floating
hotels): As name
implies these hotels
are established on
luxury liners or ship. It
is located on river, sea
or big lakes. In cruise
ships, rooms are
generally small and all
furniture is fixed
down. It has short to
medium length stay
guest.
Example: Royal
Caribbean cruise ships

113. Based on
Location
Boatels (Boat
Hotels): A house boat
hotels is referred as
boatels. The shikaras
of Kashmir and
Kettuvallam of
Kerala are houseboats
in India which offers
comfortable &
luxurious
accommodation to
travellers.
Example: Shikaras ,
Kashmir

116. Hotels near or
within a stadium

117. Based on the Level of Service
• Upmarket/ Luxury/ World class services
• Mid-market/ mid-range services
• Budget/ Economy/ Limited services

118. Based on the
Level of Service
Economy/ Budget
hotels: These
hotels meet the
basic needs of the
guest, by providing
comfortable and
clean room for a
reasonably priced
stay.
Example: Central
Park , Gwalior

119. Based on the
Level of Service
Mid market hotels/
Upmarket hotels:
Medium priced hotels
that are not luxurious
but certainly superior
to the budget hotels.
Example: Crystal Inn ,
Agra

120. Based on the
Level of Service
Luxury hotels/ World class
service:
These offer world class services,
providing restaurant and lounges,
concierge service, meeting
rooms, dinning facilities. Bath
linen is provided to the guest and
is replaced regularly.
These guest rooms contains
furnishing, artwork etc. Primary
market for these hotels are
celebrities, business executives
and high ranking political figures.
Example: Hyatt Regency, New
Delhi.

121. Based on the Length of Stay
• Commercial hotels
• Transient hotels
• Semi-residential hotels
• Residential/ Serviced Apartment hotels
• Extended stay hotels

122. Based on the
Length of Stay
Transient/ Transit
hotels : These are the
hotel where guest
stays for a day or even
less. These are usually
five star hotels. The
occupancy rate is
usually very high.
These hotels are
situated near airport.
Example: Eaton
Smart Airport Transit
Hotel at T3, IGI
Airport, New Delhi

125. Based on the
Length of Stay
Residential hotels:
These are the hotel
where guest can stay for
a minimum period of
one month and up to a
year. The rent can be
paid on monthly or
quarterly basis. They
provide sitting room, bed
room and kitchenette.
Example: Starlit Suites

127. Hotel Taj Wellington Mews- A residential hotel in Mumbai

128. Based on the
Length of Stay
• With amenities such as
self-serve laundry and in-
suite kitchens, they’re a
cost-effective and
convenient alternative to
renting a traditional
apartment.
Semi residential
hotels: These
hotels incorporate
features of both
transit and
residential hotel.

131. Based on Clientele/Target Market/
Type of customers
• Business or commercial hotel
• Suite hotel
• Transient hotel
• Casino hotel
• Residential hotel
• Bed & Breakfast hotel (B&B)
• Convention hotel
• Conference centres

132. Based on Target
Market
Commercial hotel:
They are situated in
the heart of the city in
busy downtown areas
so as to get good and
high profit business.
Compare this to
downtown hotel!
They cater mostly to
corporate executives
& rich businessmen.

134. Based on Target
Market
Convention hotels:
These hotels have
large convention
complex and cater to
people attending a
convention,
conference etc.
Example: Le
Meridien, cochin,
JayPee Palace, Agra

135. A Convention Hall in a Hotel

138. Based on Target
Market
Suite hotels: These hotel
offer rooms that may
include compact
kitchenette. They cater
to people who are
relocating , like lawyers,
executives who are away
from home for a long
business stay.

139. Based on Target
Market
Casino hotels: Hotels equipped
with predominantly gambling
facilities come under this
category. They have guest
rooms and food & beverage
operation, as normally all
hotels do.
These hotels tend to cater to
leisure and vacation travellers.
Gambling activities at some
casino hotels operate 24 hours
a day and 365 days a year.
Example: MGM Grand, Las
Vegas in the United State

142. Based on Target
Market
B & B Hotels:
Bed & Breakfast hotels are similar
to the ‘Inn” concept.
It is a family run business, either
in one’s own house or in a small
commercial building with up to
20-30 rooms.
Bathrooms may not always be
attached to all bedrooms.
Owners are responsible to serve a
sumptuous breakfast.
Rooms are priced on the lower
side.
Customers are often travellers on
a small budget.

144. Based on Target
Market
Conference Centres:
Often, these are resorts, specializing in
catering to the MICE segment of hotel
business.
MICE stands for Meetings, Incentives,
Conferences & Exhibitions.
Patronized by corporation to hold their
annual, half-yearly or quarterly events,
these resorts specialize in providing a
venue for the events and a world class
conference room for top quality
meetings.
They also have to organize cocktail
dinners on the last day and organize
local sight-seeing for the conference
delegates at least once.

147. Based on size
• Small hotel
• Medium-sized hotel
• Large hotel
• Very large or Mega-sized hotel

148. Based on size • A small hotel is intimate,
cozy, and unique, but
managing isn’t always
easier than large hotels.
• It has it’s own challenges,
even if the employees are
significantly lesser than
hotel chains.
Small – Less
than 25 rooms

150. Based on size
Medium – 25-99

151. Based on size
Large – 100-299

152. Based on size
Mega – More
than 299 rooms

153. Based on Star rating
• One star hotel
• Two star
• Three star
• Four star
• Five star
• Five star deluxe
• 7 star/ 8 star (unofficial)

154. Based on Star
rating • Room size 120 square feet
minimum
• 25% rooms air-conditioned
• 25% rooms with attached
bathrooms
• Minimum bathroom size 30
sq feet
• Many more mandatory &
desirable criteria
Single Star 1

155. Based on Star
rating • Room size 120 square feet
• 25% rooms air-conditioned
• 75% rooms with attached
bathrooms
• Minimum bathroom size 30
sq feet
• Many more mandatory &
desirable criteria
Two Star 2

156. Based on Star
rating • Room size 140 square feet
• 50% rooms air-conditioned
• 100% rooms with attached
bathrooms
• Minimum bathroom size 36
sq feet
• Many more mandatory &
desirable criteria
Three Star 3

157. Based on Star
rating • Room size 140 square feet
• 100% rooms air-
conditioned
• 100% rooms with attached
bathrooms
• Minimum bathroom size 36
sq feet
• Many more mandatory &
desirable criteria
Four Star 4

158. Based on Star
rating • Room size 200 square feet
• 100% rooms air-
conditioned
• 100% rooms with attached
bathrooms
• Minimum bathroom size 45
sq feet
• Many more mandatory &
desirable criteria
Five Star 5
& Five Star
Deluxe

159. What is ‘Deluxe’?
• deluxe
Pronunciation /dɪˈlʌks,dɪˈlʊks/
• adjective
• luxurious or sumptuous; of a superior type.
For example, "a deluxe hotel“
• 1. शानदार
• 2. आलीशान

160. What is the meaning / definition of 7
Star Hotel in the hospitality industry?
• Most famously known as a 7 Star Hotel, is the
Burj Al Arab, operated by the Jumeirah Group.
Recently companies have begun setting up
criteria for 7-star hotels – though their
classification is still not widely accepted in
the hospitality industry.
• Officially there is no classification for 7-star hotels
and the term 7-Star Hotel has often been rather
described as a marketing stunt than a hotel
classification or rating.

162. Based on Theme
• Heritage hotel
• Boutique hotel
• Ecotel
• Spa resort

163. Based on Theme
Heritage hotel: In
this hotel a guest is
graciously welcomed,
offered rooms that have
their own eventful history,
serve traditional cuisine and
are entertained by folk
artists.
These hotels put their best
efforts to give the glimpse of
their region’s history and
culture.
Example: Jai Mahal palace in
Jaipur.

164. Indian Heritage hotels have their own
unique classification system.

165. Heritage (Basic)
Hotels in houses,
havelis (हवेली),
hunting lodges,
castles, forts or
palaces built
between 1935 and
1950

166. Heritage
(Classic)
Hotels in houses,
havelis, hunting
lodges, castles,
forts or palaces
built between 1920
and 1935

167. Heritage (Grand)
Hotels in houses,
havelis, hunting
lodges, castles,
forts or palaces
built before 1920

168. Based on Theme
Ecotels : these are
environment
friendly hotels.
Such hotel use eco
friendly items in
the room.
Example: Orchid
Mumbai is Asia’s
first and most
popular five star
Ecotel.

171. Based on Theme
Boutique hotels: This
hotel, often small,
provides exceptional
accommodation, eclectic
furniture in a themed
and stylish manner.
Caters to corporate
travelers who wish to
enjoy a unique stay
experience each time.
Example: In India The
Park Bangalore is a
boutique hotel

174. Based on Theme
Spa: is a resort
which provide
therapeutic bath
and massage along
with other features
of luxury hotels in
India.
Ananda spa in
Himalayas are the
most popular Spa.

176. A Spa Hotel services

179. Based on Ownership and Affiliation
• Independent/ Proprietary ownership hotel
• Management contracted hotel
• Franchise hotel
• Timeshare hotel & vacation club hotel
• Condominium hotel

180. Based on Ownership
and Affiliation
• Independent Hotels :- They do not
have identifiable ownership or
management affiliation with other
properties. That means these
properties doesn't have any
relationship to another hotel
regarding policies , procedures ,
marketing or financial obligations .
Example for the same would be family
owned and operated hotel that is not
following any corporate policies or
procedures. The advantage of a
individual property is its autonomy .
An independent hotel however does
not get the advantage of board,
advertising exposure, or management
insight and consultancy of an affiliated
(chain of hotels) property .

183. Based on Ownership
and Affiliation
• Chain hotels :- These kind of
ownership usually imposes
certain minimum standards,
rules , policies and procedures to
restrict affiliate activities . In
general the more centralized the
organization the stronger the
control over the individual
property . Some chain have
strong control over the
architecture, management and
standards of affiliate properties .
Others concentrate only on
marketing , advertising and
central purchasing .

185. Based on Ownership
and Affiliation
• Management Contract: Management
companies are organizations that operate
properties owned by others. Those other
hotels may be owned by individual
persons, partnerships or private limited
companies .
• The individual hotel, under construction,
may contract with a professional hotel
management company to operate the
proposed property .
• These contracts are normally on a long-
term basis.
• Some management companies, when they
feel that they must have a hotel in a
particular location, they approach
prospective individuals to build a hotel and
operate under their managements
contract.

187. Management contract operated
hotel brings real estate investors
and expert hotel chains together.

189. Based on Ownership
and Affiliation
What is a hotel
franchise?
The franchisee pays a
franchise fee to the
franchisor to use their
brand and receive
support in operating
their business. In the
case of a hotel franchise,
the franchisor is going to
be a hotel brand, such as
Hyatt, Hampton, or
Sheraton, to name a few.

191. There are a lot of good reasons to
become a franchise owner,
particularly having the backing of
a huge parent company,
leadership training and technical
support. It brings a lot of value to
the table.

194. Based on Ownership
and Affiliation
• Timeshare and condominium Hotels: -
Another new type or segment of the
hospitality industry is the timeshare
hotels. These are sometimes referred
to as " Vacation-interval" hotels .
Timeshare hotels are where the guests
purchase the ownership of
accommodations for a specific period.
These owners may also have the unit
rented out by the management
company that operates the hotel.
Condominium are similar to timeshare
but the difference between the two lies
in the type of ownership. Units in
condominium hotels only have one
owner instead of multiple owners.
• In a condominium hotel, an owner
informs the management company if
and when he/ she wants to occupy the
unit.

203. Alternative Accommodation
• The common understanding of the word
accommodation is linked to hotels, resorts
and all other types of formal organizations
that provide room and related services to a
regular traveller.
• If a tourist seeks and finds a place to stay
other than these, which aren’t as luxurious or
expensive, it may be cited as an example of
alternative accommodation.

205. Examples of Alternative
Accommodation
• Religious places’ pilgrimage accommodation
• Corporate & Government guest houses
• Educational & cultural bodies providing
accommodation to the youth (hostel)
• Caravan & campers, RV Trailers
• Tents (luxury & economy)
• Train company owned lodging like dormitories
• Home-stays (AirBnB)
• Cabins & tree-houses
• Ranch & farm houses

220. Sonepur Fair, in Saran district of Bihar attracts many foreign
tourists. Bihar State Tourism Development Corporation
provides luxury tent accommodation at reasonable rates.

222. THANK YOU