Tourism Components and Supply - Tourism: Principles, Practices, Philosophies - page 268

Accommodations

For successful tourism, must be available in suf cient quantity to match the demand

of the travelers who arrive at the destination. Given access to the destination, accommodations should
precede any other type of development; their importance cannot be overemphasized.
Lodging facilities vary tremendously in their physical facilities, level of maintenance and cleanli-
ness, and services provided. Unless all of these factors are at satisfactory levels, tourism cannot
succeed. The lodging must provide the physical facilities, price ranges, locations, and services that
meet the expectations, wants, and needs of the travelers. Should the quality of facilities and services
drop, demand will fall off

accommodations

— a serious blow to the tourism industry in the area.

Supply of Accommodations

Lodging comes in many forms aimed at satisfying the needs of the market. The range of supply in the
marketplace is vast. From the tourist is standpoint, the primary type is the destination resort hotel

situated in attractive surroundings and usually accompanied by a large mix of services, including
entertainment and recreational activities

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for the travelers and vacationer. Another major type is the
commercial hotel, usually a downtown structure, located conveniently for the business traveler and
vacationer. However, while important, these types are just the beginning of the supply picture. We
also have boutique, all-suite, extended stay, conference, convention, motel, condominium, timeshare,
bed and breakfast, inn, gite (a French home available for rent), cabin, cottage, hostel, pension, farm
stay, campground, apartment, and tent accommodation to mention a number. We also have cruise
ships that have become floating resorts. Many resorts are designed especially to accommodate special
activities such as gaming, golf, tennis, skiing, and spas. There are also unique accommodations such as
the seasonal ice hotels in Canada, Sweden, and Finland.
The demand for accommodations varies according to the price that guests are willing to pay,
services required, and similar considerations. Consequently, we have luxury, upscale, mid-price,
economy, and budget market price segments to appeal to travelers.
In the United States, Smith Travel Research (STR) de nes these as follows:

Luxury highest 15 percent average room rates

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&

Upscale next highest 15 percent average room rates

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& Mid-price

next 30 percent average room rates

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Economy next 20 percent average room rates

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&

Budget lowest 20 percent average room rates

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&

Because consumers seek different levels of service, there are full-service accommodations that
offer restaurants, lounge facilities, meeting space, bell service, and room service. These are typically
mid-price, upscale, or luxury hotels. Competing with them are limited-service hotels that have rooms-
only operations or offer very few other services or amenities. These operations are in the economy or
budget grouping. Many successful tourism areas have no multistoried, expensive, contemporary-
looking hotels. For example, bungalow-type accommodations constructed with native materials, built
to modern standards of comfort and safety, and kept immaculately clean are acceptable to a large
segment of the market.

Condominiums

Individual buyers of condominium units typically use the apartment for their own enjoyment, or they
rent it to tourists for all or part of the year. This form of accommodation has become increasingly
important in ski and beach destinations, and in some resort areas it constitutes considerable