Hotel Room Types, Plans, and Tariffs
In the hospitality industry, hotels offer a wide variety of room types, meal plans, and pricing structures designed to accommodate the unique preferences and budgets of their guests. Some guests seek luxurious suites with added amenities, while others prioritize affordability or need family-friendly options like connecting rooms. By providing this range, hotels can better serve a diverse clientele, from business travelers to vacationing families.
Meal plans, such as bed and breakfast or all-inclusive options, cater to guests’ dining preferences, offering either flexibility to explore local cuisine or the convenience of on-site dining. Room rates, on the other hand, are carefully designed to respond to market demands, attract specific types of guests, and ultimately help hotels maximize revenue.
This chapter explores these essential classifications, meal plans, and rate types, providing hospitality students with foundational knowledge in room management.
1. Types of Rooms
In the hospitality industry, rooms are classified based on their size, amenities, and purpose to suit various guest needs. Here are some common types:
1. Single Room
Designed for a single occupant, single rooms are compact and include essential amenities. A single bed, a desk or small work area, an ensuite bathroom, a television, basic toiletries, and a wardrobe. Ideal for solo travelers, these rooms offer privacy and a comfortable stay without unnecessary space.
Size: Generally, around 90-130 square feet.
2. Double Room
Double rooms are meant for two people and typically feature one double bed or two twin beds.
One double bed (or two twin beds), a small sitting area, a television, ensuite bathroom, wardrobe, and basic toiletries. This room type is common for couples and friends who wish to share accommodation.
Size: Approximately 140-200 square feet.
3. Twin Room
The twin room includes two separate single beds, making it suitable for two occupants who prefer separate sleeping arrangements.
Two single beds, an ensuite bathroom, a wardrobe, a desk or work area, a television, and basic toiletries. Twin rooms are popular among friends, colleagues, or family members traveling together.
Size: Usually between 160-220 square feet.
4. Suite
Suites offer a luxurious experience, including multiple rooms such as a bedroom, living area, and sometimes a small kitchen.
Basic Facilities: A separate bedroom with a king or queen bed, a spacious living area, a dining table, high-end bathroom facilities, a minibar, a desk, a television in each room, and upgraded toiletries. Suites are ideal for guests looking for a premium stay, often for special occasions or extended stays.
Size: Varies, often 400-800+ square feet depending on the hotel class.
5. Connecting Rooms
Two adjacent rooms connected by an interior door, allowing guests to move between rooms without using the hallway.
Each room contains its own bed arrangement (often one double and one twin), separate bathrooms, televisions, and standard room amenities. Connecting rooms are often chosen by families or groups who want privacy with easy access to each other’s rooms.
Size: Generally, each room is 140-200 square feet.
6. Studio Room
Studios offer combined sleeping and living areas with basic kitchen facilities, suited for guests on extended stays.
A queen or king bed, small kitchenette (including a microwave, sink, and sometimes a stovetop), a dining table, a seating area, an ensuite bathroom, and a television. These rooms cater to guests who prefer to cook and stay longer.
Size: Typically, around 250-400 square feet.
7. Executive Room
Located on premium floors, these rooms provide additional amenities and services for business travelers.
A king or queen bed, a work desk, high-speed internet, an upgraded bathroom, access to a business lounge, a minibar, and often complimentary breakfast. Executive rooms are designed to accommodate the needs of professionals seeking comfort with added conveniences for work.
Size: Approximately 250-350 square feet.
2. Food/Meal Plans
Hotel room plans, also known as meal or food plans, are predefined packages that include accommodation with various dining options. Each plan is tailored to suit different guest preferences, offering flexibility for travelers who want different levels of access to hotel dining services. Here are the primary types of hotel room plans:
1. European Plan (EP)
The European Plan is a room-only package that includes no meals, giving guests the freedom to dine anywhere they choose. This plan appeals to travelers who prefer exploring local restaurants or who may not require regular meals at the hotel. While the hotel may have an in-house restaurant available, guests under this plan pay separately for any food or beverages consumed on the premises.
Included: Room accommodation only; no meals or drinks are included.
Suitable For: Independent travelers, budget-conscious guests, or guests who wish to dine outside the hotel.
2. Continental Plan (CP)
The Continental Plan includes room accommodation plus a light breakfast, typically served in a buffet style. The breakfast often includes items like pastries, bread, jam, butter, coffee, tea, and juice. Continental Plans offer a convenient start to the day for guests while leaving them free to make their own lunch and dinner arrangements elsewhere.
Included: Room accommodation and continental breakfast (usually light and self-service).
Suitable For: Guests who want a simple breakfast before heading out and prefer flexibility for lunch and dinner.
3. Bed and Breakfast Plan (B&B)
The Bed and Breakfast (B&B) Plan offers room accommodation with a full breakfast. Unlike the Continental Plan, B&B breakfasts are more extensive, typically including hot items such as eggs, sausages, pancakes, cereals, fruits, and beverages. This plan suits guests who enjoy a more filling breakfast to start their day but prefer the freedom to explore local dining options for lunch and dinner.
Included: Room accommodation and a full breakfast with a wider selection of options.
Suitable For: Guests who want a hearty breakfast included and prefer flexibility for other meals.
4. Modified American Plan (MAP)
The Modified American Plan, also known as the Half Board, includes room accommodation, breakfast, and one additional meal—usually either lunch or dinner. This plan provides a convenient, cost-effective option for guests who want a substantial breakfast and the flexibility to decide on either lunch or dinner. MAP is popular among travelers who may spend a part of the day outside but prefer one main meal at the hotel.
Included: Room accommodation, breakfast, and one additional meal (usually lunch or dinner).
Suitable For: Travelers who want a semi-inclusive experience, often heading out during the day but enjoying a return to the hotel for a main meal.
5. American Plan (AP)
Also known as Full Board, the American Plan includes room accommodation plus all three meals: breakfast, lunch, and dinner. Meals are generally served in a buffet style or a set menu and may feature local and international cuisine. The American Plan is popular in resort hotels or destinations where guests prefer staying on-site for dining. This plan gives a completely inclusive experience, eliminating the need for guests to plan meals outside the hotel.
Included: Room accommodation, breakfast, lunch, and dinner.
Suitable For: Guests who want a fully inclusive package and do not wish to dine outside the hotel, often resort or leisure travelers.
6. All-Inclusive Plan (AI)
The All-Inclusive Plan offers room accommodation, all meals, snacks, and unlimited beverages (including alcohol) as well as some additional activities or amenities, such as access to entertainment or recreational facilities. This comprehensive plan allows guests to indulge in unlimited food and drink and enjoy various hotel services without worrying about extra charges. All-Inclusive Plans are popular in luxury resorts or beach destinations, providing a truly all-encompassing experience.
Included: Room accommodation, all meals, snacks, beverages (including alcohol), and sometimes additional amenities like activities or entertainment.
Suitable For: Travelers seeking a hassle-free vacation with unlimited food, drinks, and activities; common in resort settings.
3. Types of Room Rates
1) Rack Rate:
The rack rate is the highest published rate for a room, typically displayed in the hotel or on its website. This rate does not include any discounts or special offers and is often considered the “base” rate for a room category. Rack rates are commonly used as a benchmark for other discounts, providing a reference point against which promotional or discounted rates are calculated. Although rarely paid by most guests, rack rates are essential in pricing strategy as they represent the full value of the room.
2) FIT (Free Independent Traveler) Rate:
The FIT rate is a discounted rate offered to individual travelers, often through travel agents or direct bookings. This rate is used to attract independent travelers who are not part of a group and may be booking as part of a package deal with a travel agency or as individual guests. The FIT rate is usually negotiated in advance with travel agencies and is a popular choice for solo travelers or couples. It incentivizes individual bookings by offering a rate lower than the rack rate.
3) Crew Rate:
Crew rates are special discounted rates offered to airline crew members or other traveling personnel who require regular, short-term accommodation, particularly near airports or transit hubs. Hotels negotiate these rates with airlines or travel companies to ensure consistent, high-volume bookings. Crew rates are designed to be cost-effective while meeting the basic comfort and convenience needs of airline crew, who may stay overnight between flights. They often include early check-in or late check-out options to accommodate irregular schedules.
4) Group Rate:
Group rates are negotiated discounts offered to parties booking a large number of rooms, typically ten or more. This rate is popular among conferences, tour groups, wedding parties, and other large gatherings. The group rate provides a cost-effective solution for booking multiple rooms, often including additional perks like group dining or meeting facilities. Hotels benefit from group rates by securing bulk reservations that ensure higher occupancy rates and predictable revenue, especially during off-peak times.
5) Corporate Rate:
Corporate rates are discounted rates negotiated with companies and organizations for business travelers. These rates cater to professionals traveling for work and are often agreed upon as part of a corporate contract for regular or high-volume stays. Corporate rates may include additional benefits such as complimentary breakfast, Wi-Fi, access to business facilities, or priority booking during peak times. Offering a corporate rate allows hotels to establish long-term relationships with businesses, ensuring steady bookings and fostering loyalty.
6) Weekend Rate:
Weekend rates are reduced rates offered for stays during weekends, typically Friday to Sunday. These rates are designed to attract leisure travelers, particularly during periods when business travel declines, such as weekends in business-focused hotels. By offering weekend rates, hotels can maintain occupancy during slower times, appealing to locals or nearby travelers seeking a short getaway. Weekend rates are popular for city hotels that experience lower occupancy on weekends.
7) Seasonal Rate:
Seasonal rates adjust room prices based on high and low-demand periods, such as peak tourist seasons, holidays, or local events. Hotels increase rates during peak seasons when demand is high, maximizing revenue from guests willing to pay premium prices. Conversely, they offer discounted rates in off-seasons to attract budget-conscious travelers and improve occupancy. Seasonal rates are particularly useful for resorts and hotels in tourist destinations that experience fluctuations in demand based on time of year.
Key Terms
Occupancy: The percentage of rooms occupied in a hotel at a given time.
Check-in/Check-out: The process of a guest registering upon arrival and settling their account upon departure.
Overbooking: Accepting more reservations than available rooms to compensate for no-shows.
Revenue Per Available Room (RevPAR): A metric to evaluate a hotel’s ability to fill rooms and generate revenue.
Complimentary Room: A room provided free of charge, often for special guests or as part of a promotion.
Yield Management: Pricing strategy used to maximize revenue based on demand patterns.
European Plan (EP): A room-only package without meals included, allowing guests to pay separately for food or dine outside.
Continental Plan (CP): Offers room accommodation with a light breakfast, typically including items like pastries, bread, and beverages.
Bed and Breakfast (B&B): Provides room accommodation along with a full breakfast, featuring a variety of hot and cold breakfast options.
Modified American Plan (MAP): Also known as Half Board, this plan includes room, breakfast, and one additional meal (either lunch or dinner).
American Plan (AP): Also called Full Board, it includes room, breakfast, lunch, and dinner, creating a fully inclusive dining experience.
All-Inclusive Plan (AI): Offers room, all meals, unlimited beverages (including alcoholic drinks), snacks, and sometimes entertainment or activities, providing a completely comprehensive stay.
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FRONT OFFICE
1 Types of rooms
2 Food/Meal plans
3 Types of room rates
4. Room Plans
HOTEL ROOMS, TARRIF AND PLANS
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