Levels of Service

The four commonly used market segments —identifiable groups of customers with similar needs for products and services—are full service, all-suites, limited service, and extended stay. There is a great deal of overlap among these divisions, and much confusion, some of which occurs because leaders in the hotel industry do not agree on terminology. Some industry leaders avoid the “budget” tag because of its connotations of cheapness and poor quality. Others welcome the label because it appeals to those travelers who are looking for basic accommodations at very inexpensive rates. Nevertheless, the following definitions provide some idea of what is offered at each level of service.

Full service is a level that provides a wide range of conveniences for the guest. These services include, but are not limited to, reservations, on-premise dining, banquet and meeting facilities, and recreational facilities. Examples of a full-service hotel include Marriott Hotels and Resorts, Renaissance Hotels, and Holiday Inns.

As discussed earlier, all-suites indicates a level of service for a guest who will desire a more at-home atmosphere. Services include separate sleeping and living areas or working areas, kitchenette facilities, wet bars, and other amenities at the midprice level. This concept appeals to the business traveler as well as to families. Marriott Suites and Embassy Suite Hotels are examples of all-suite hotels. It is interesting to note that this concept is also employed in older center-city commercial hotels, in which adjoining rooms alongside the bedroom and bath have been remodeled into living rooms and kitchenettes to create suites.

Limited service emphasizes basic room accommodations, guest amenities, and minimal public areas. A continental breakfast and/or an evening cocktail is often included in the price of the room. The guest has the opportunity to trade the public meeting room for free in-room movies, the dining room for free local phone calls. Hampton Inns and Ramada Limited are examples of limited-service hotels.

Extended stay is a level of service that offers a “home away from home” atmosphere for business executives, visitors, and families who are planning to visit an area for an extended period of time. A fully equipped kitchenette allows international guests to prepare foods that provide comfort in a new environment. Also, the spacious bedrooms and living areas provide work and recreational areas. Light breakfast and evening meals are also included. An example of this level of service is Hilton’s Homewood Suites hotels.

O S P I T A L I T Y P R O F I L E

Greg Goforth is the general manager of the Best Western Merry Manor in South Portland, Maine. The Merry Manor is a full-service hotel with 151 guest rooms, 6 meeting rooms, and a restaurant. Guest amenities include a year-round outdoor heated pool, an 18-foot indoor hot tub with a therapeutic waterfall, and a kiddie pool. Mr. Goforth has a degree in hotel and restaurant management from the University of New Hampshire. He says that guests are looking for the basic comforts of home—clean, comfortable, wellequipped rooms with everything in working order. He has noticed a trend toward added amenities in the rooms. Irons, ironing boards, and hair dryers are now considered necessities, and having breakfast available is a must. Business-friendly rooms with a large desk, in-room fax machines, and easy and fast Internet access are also a necessity for attracting a corporate clientele.

Mr. Goforth indicates that the occupancy in the Portland market has remained fairly consistent. Growth in occupancy has barely kept up with the constant increase in supply. The average daily rate has been rising faster than inflation; however, increased guest demands and increased payroll expenses have added to the challenge of making a profit. The greatest challenge for hospitality in the next few years will be attracting and retaining qualified help.