Introduction
Hotel Industry occupies a pivotal position in the economy of any country. Once upon a time, hotels were not found to emerge as a tool for economic empowerment of a country. They were considered merely as a place for taking food and a platform for enjoying the leisure time. But, of late, on account of industrialization and the fast development in tourism and hospitality industry the world over, hotels and hotel industry are growing at a fast rate. The Globalization and liberalization policies further accelerated the pace of development, which resulted in mushrooming of giant hotels in every nook and corner across the globe. Besides, many other reasons can be attributed to this unprecedented growth such as high growth in information technology, boom in real estate, and indeed the rising stock market and the resultant flow of massive funds beyond the boundaries of a country. Over the years, many developments have been taken place in the industry owing to the fast changing demands in the market. Today, hotel industry has become one of the main sources of earning foreign exchange and a dependable source of employment for almost all countries in the world. The success of hotels and hospitality industry primarily depends upon how successful they are in meeting the needs and wants of customers with whom they exist and survive. This research paper looks primarily upon in what all ways bargain hotels and five star hotels differ in their services and to what extent these hotels can fulfill the needs of the customers. Before we look into the main theme of the paper, let us have some thoughts on the history of hotels and hospitality industry in the United Sates of America.
A Brief History of Hospitality Industry in the U.S.
The hospitality industry covers a diverse range of establishments providing services including food, accommodation, beverages etc. The early days of hospitality industry in America were in the hands of inns and lodge owners. The inn owners in the country were willing to try everything to make their business a success. “By the time of American Revolution, inns in America were destined to become a prime example of the finest service available to any traveler able to the price.” (The Early Days of American Hospitality). When the time passed, the need for luxury also increased among the travelers, both domestic and international. Inn owners provided new amenities and luxury rooms to retain existing and attract new customers. When they started letting room at affordable rate, Americans decided to live permanently in inns. The opening of City Hotel in New York City in the year 1794 with 73 rooms is a landmark in the history of hospitality industry in America. (The First Five Star Hotel 1829). The first five star hotel, Tremont House begun in the year in 1829 in Boston is considered as the beginning of first class service in the country.
(The First Five Star Hotel 1829). When years and centuries passed, the taste and preferences of travelers also changed. This changed the way hoteliers did their business by introducing modern ideas and amenities. The olden inns were converted into hotels, motels and resorts. Among the star hotels, there were many classifications in addition to the traditional star system such as suit hotels, casino and resorts. Modern hotels use computerized reservation system and online payment by which travelers can reserve and make payments from any part of the world.
Objectives of the Study
The present paper primarily aims at a comparative study of bargain and 5 star hotels in the United States of America. The paper is expected to analyze and interpret these hotels in terms of customer affordability, quality of personal service, facilities, accessibility etc. This objective can be further explained in the following manner.
- To compare and contrast bargain hotel and 5 star hotel
- Which of these two hotels is preferred by majority of customers
- Which kind of customers prefer bargain hotel to 5 star hotels and vice versa
- What are the criteria for the selection of 5 star hotel or bargain hotel for stay
Methodology
The paper depends solely upon the secondary sources for data collection. Since the literature available in the area is very rare, authorized web sites of hotels and agencies of government are extensively used. The paper uses the information available on the internet on the anticipation that they are reliable. Further, since the data available about bargain hotel are limited, some logical assumptions are made, which are illustrated in the work in the coming paragraphs. For the purpose this paper, bargain hotel and 5 star hotels have been defined and the same is also incorporated in the paper.
Operational Definition
Bargain Hotel
They are basically hotels with all facilities including lodging. They are also known as economy hotel or budget hotel, which implies that the customer can reduce his bill by asking for a reduction in the charges normally levied by the hotelier. But, the reduction in the price should not be at the cost of quality services and facilities. These hotels have all facilities of star hotel including computerized reservation system and online payment.
Five star hotel
These hotels are those which charge high prices from customers for luxurious amenities and services, which are of high quality than that of economy hotels.
Personal Service
The various services available at the hotel from the moment the customer enters the hotel to checking out his room are termed as personal services. It includes services of room boys, services at the restaurant, response to computerized reservation and payment system, quick room availability and check out etc.
Assumptions of Bargain Hotel
As stated earlier, owing to the unavailability of data on bargain hotels in the country, the study calls for the following assumptions. These assumptions are valid for the purpose of the present paper only and shall not be suggested for generalization.
The facilities and amenities available at the bargain hotel are at par with the five star hotel:
- The personal services of bargain hotels and five star hotels are also in parity. But they differ in the quality of services available.
- Computer online reservation system and online payment facility are available
- The price charged is relatively lower.
Data Collection
The entire data for the paper are collected over the internet. The web sites of hotels, travel agencies, and government agencies are extensively used. Maximum efforts have been put to avoid unauthentic and illegal sites. The data collected are descried below:
Bargain Hotel
These types of hotels found in almost all countries are known in different names such as budget hotel and economy hotel. The very name suggests that these hotels provide an offer to its customer to bid for the services and facilities. The customer makes bids for the price of various services and facilities, and if the management is satisfied with the offer made, the stay is fixed. These hotels normally have all facilities and services that a five star hotel does have. These are usually occupied by business travelers who frequently travel and want to restrict their traveling expenses within the budget. Computerized reservation system and online payment system are available in almost all bargain hotels to attract the overseas customers.
Five Star Hotel
They are known as five star hotel because they provide five diverse categories of services and facilities. They charge a high price for their services, which are somewhat similar to that of bargain hotel. The quality of service at these hotels is high and quality is not compromised at the cost of price. They have a customer focused approached towards personal services. These hotels are preferred by people who travel irregularly and for leisure and comfort. They need not limit their expenses within the budget as opposed to business travelers. That doesn’t mean that all business travelers are economy travelers.
Criteria used for the selection of hotel
Whether a bargain hotel or a five star hotel for a one night stay is determined not by a single factor, i.e., cost, but a numerous factors. These factors change from country to country because; they in turn are determined by the country specific factors such as geography, culture, political scenario etc. Following are the important factors which determine why a particular traveler opt bargain hotel or five star hotel:
Budget
This is acknowledged to be the major factor which travelers pay attention at the time of planning for journey. This is particularly imperative for business travelers whose budget is determined in advance by somebody. But those who are traveling for leisure and comfort are usually least bothered about the budget. (Cullen).
Price
The price charged by the hotel for various facilities and services also has a bearing in the selection of hotels. The budget and the price are different things in this regard. When the former is meant by the fund allocated for travel in advance, the latter is the value charged by the hotel in exchange for the services rendered. The price includes all hidden costs such as telephone cost, incoming fax charges, television channel charges etc. (Hotels in Singapore).
Period of Stay
The number of days the traveler intends to stay in a hotel is also a deciding factor. Usually, longer the period, lesser would be the preference to costly stay. However, immensely rich people are an exception to this general rule.
Facilities and amenities
The facilities and amenities with which guests are served by hotel also decide the selection process. If the customer comes for a long stay, he/she is mostly attracted by swimming pool and sport facilities. On the other hand, the one night stay is not appealed by any such time consuming amenities.
Personal Services
The way in which the guests are treated by the hotel is also a major concern among the travelers in the selection process. Many hotels seem to be same in all facilities, but in reality they differ extensively in quality service. Rendering personal service is not just as simple as many think. It needs an extensive training to those who are actually rendering such services. It is imperative in the context of international hotels where majority of customers come from other countries.
Proximity
The place of hotel has an important bearing in selection. Hotels close to the railway stations are preferred by train travelers and domestic travelers and those near to airport are accommodated mainly by international travelers and air travelers. Big hoteliers, therefore always take a mid-way in this regard so that both target groups might be attracted.
Electronic Accessibility
Almost all big hotels are accessible through internet. Majority of travelers, today, especially international prefer to computerized reservation and online payment to the conventional system because of their busy itinerary. Moreover, it relieves the travelers from all troubles and difficulties of traditional system. (Hotel Selection Guide-How to Find a Hotel Online).
Data Analysis and Interpretation
The data collected through the web sites are put to analysis for drawing logical conclusions. The data are analyzed on the basis of the dimensions in line with the objectives of the study.
Which of the two hotels is the best?
This question is illogical because nothing can be judged best from a single perspective. A hotel which is economical is the best for one who prefers to reduce the cost of stay and food. On the other hand, the best hotels for quality conscious customers are those that provide high quality personal services and amenities.
Accordingly, both bargain hotels and five star hotels are best from the perspectives of different group of customers. Both satisfy the needs of their target group.
Which of these two hotels is preferred by majority of customers?
It is matter of differences in the number of customers who are after bargain hotel/ five star hotels. In a developed country like U.S.A., the majority of customers prefer world class luxurious amenities and services.
Which kind of customers prefer bargain hotel to 5 star hotels and vice versa?
Those who are frequently traveling for business purposes usually look for cost reduction whereas those who are ready to pay anything for enjoyment and leisure prefer five star hotels.
Conclusion
All hotels try to render quality service to its customers. Bargain hotels try to improve their business by attracting people who want to reduce their travel budget. While five star hotel attracts rich people who are ready to pay for quality services and amenities. Many people believe in quality services at low cost. Some are ready to sacrifice at the cost of price. But a few is always after the high priced, luxurious ones. Thus, budgets of travel as well as the price for services are important elements in the selection of hotels. However, regardless of price and budget, all prefer neatness and hygiene. The most important thing is whether the hotels are able to sustain their business or not. The way hotels take their customers, treat them, and send them back to their home determines the success or otherwise of hotel business. Thus, improving the quality of hospitality within the reasonable cost to achieve more business is the way out for sustainable development of the industry.
Works Cited
Cullen, Peter. Budget Travel Tips 101. We Go Places: The Smart Way to Plan Your Travel Itinerary. 2008. Web.
Hotels in Singapore. Asia Travel Tips. 2008. Web.
Hotel Selection Guide-How to Find a Hotel Online. We Go Places: The Smart Way to Plan Your Travel Itinerary. 2008. Web.
The Early Days of American Hospitality. 1999. 2008. Web.
The First Five Star Hotel 1829. 1999. 2008. Web.