Monthly Archives: October 2015

Deven Guerrero: NYT Travel Section Assignment 3

In this weeks New York Times Assignment, i came upon an article in the travel section titled ‘Air Travel News: A Garden at Kennedy; a Forecast for Lower Fares’ by Elaine Glusac. This article exposes Jet Blue’s agricultural development at the Kennedy airport, and air fare predictions through the Hopper app.

JetBlue built a 24,000 square foot garden in New York’s Kennedy airport. This¬†garden is planted with blue potatoes, herbs and vegetables including beets and arugula. These produce will be¬†provided for the restaurants in the terminal, donated to local pantries, and in particular, the blue potatoes will be supplied to the Terra Company.¬†The Hoppers app is an application that involves in the prediction of future air fares. According to Hopper, Airfares fell a remarkable 18 percent in September compared with the same time last year, and were 9 percent cheaper than August. They state that this occurance is due to ¬†the drop in oil prices. Predictions show¬†that domestic fares will average about $211 for the rest of the year, October through December, which would be 17 percent cheaper than in 2014. And, if its forecasts are right, the news gets better in January, when flights will fall to about $204 on average.

I am proud of JetBlues investment in agriculture at the Kennedy airport and it is a brilliant idea. In my point of view, this will be a great way to support the local businesses and produce more capital for the airline itself. If this investment goes well, more gardens can be built in other airports. I am amazed at how the Hopper app can benefit a lot of those whom travel. After reading this article, i recommend that people download the Hopper app. This is a great way to stay updated on when is best to buy fares. This will result in saving money and can do well for your pockets.

Noemi Mendez Chapter #2 ‚ÄúThe Hotel Business‚ÄĚ

This chapter is a brief introduction of how the hotel business evolved in the United States with the grand opening of the first tavern in the states of Boston in 1634 by an entrepreneur named Samuel Coles and finish with the development of luxury hotel in the new millennium. Also this chapter focus on the sub-categories of hotel development and ownership. Some of the sub-categories are franchising, the referral associations, the management contracts and the real estate investment trust. Additionally, this chapter focus on the classification of hotel and how the hotels are rate by the American Automobile Association (AAA) with the raking numbers from 1 to 5 diamonds. Some of the hotel classifications are city center hotels, resort hotels, airport hotels, freeway hotels, and motels, casino hotels, convention hotels, full-service hotels, economy/budget hotels, boutique hotels, extended-stay hotels all-suites extended-stay hotels, condotels and mixed use hotels, and the last category is bed and breakfast inns. To conclude this chapter, the writer talked about the trends in the hotel development in which include capacity control, safety and security, assets and capital, technology, new management, globalization, consolidation and diversification within segment of the lodging industry.

Key Words and Concepts:

  1. Capital Intensive ‚Äď Example: To open a restaurant in the city of New York it‚Äôs require an intensive amount of money because for you to survives the first year you need to have a strong capital intensive amount of money.
  2. Fair Return on Investment ‚Äď Example: When you share ownership of a business with the co-owner it is important to share the profit of a business equally among themselves.
  3. Feasibility Study ‚Äď Example: To open a restaurant business in an specific demography area, the owner need to do an intensive feasibility study to see if the business will be profitable in that area.
  4. Direct Economic Impact ‚Äď Example: The war between Iraq, Afghanistan and the United States has a negative direct economic impact to the United States economic.
  5. Indirect Economic Impact ‚Äď Example: The war between Iraq, Afghanistan and the United States has an indirect economic impact on people salary and job stability in the United States.
  6. Franchising ‚Äď Example: McDonald‚Äôs and Subway‚Äôs restaurants are examples of franchising business.
  7. Management Contracts ‚Äď Example: I want to open a restaurant business and I would like to partnership with a management contracts because I don‚Äôt have the knowledge or experience on how to manage a business in the culinary art industry.
  8. Real Estate Investment Trust (REITs) ‚Äď Example: I would like to invest my saving in the real estate trust by buying stocks on REITs and obtain a profitable return on the investment.
  9. Referral Association ‚Äď Example: Some hotels and motel are associate with the Referral Association and most of them use a common image, logo or advertising slogan which are known for providing discounts to members, management training and continuing education program.
  10. Vacation Ownership ‚Äď Example: In the Dominican Republic, tourist and foreign Dominican like to buy vacation ownership in hotels that are associate with the beaches coast like Punta Cana.

Carlos Amaro- Chapter 2 Summary

In chapter two “The Hotel Business”¬† the text discusses the fundamental nature and the current state of the hotel and lodging industry. It begins by giving us a timeline of pivotal events and developments that have the concept of a hotel as we know it today. From there it leaps into detailing the various¬†methods used in modern hotel development. This section begins with referring to the popular vehicle of hotel expansion known as franchising which is a double edged sword of sorts due to the contractual limitations it places on both parties. Then they refer to the confederation style arrangement of referral associations and how¬†they incorporate the use of shared branding and¬†a central reservation system. The chapter ends the section¬†by¬†detailing management contracts ¬†and the traditional investor oriented practices of hotel development. They mention the significant positive impact that hotels have on local economies. Furthermore, the chapter delineates the nature of hotel classification, and it¬†gives the example of the American Automobile Association’s diamond award system. According to the chapter,¬†hotel¬†classifications are usually¬†predicated on location, price, and type of services offered. Afterword, the chapter shares certain ongoing trends and development in the hotel industry. The chapter tells of the growing trend of vacation ownership such as timeshares. Then it shifts focus to the growing internationalization and market diversity of the hotel industry. It also notes the increasing emphasis on environmentally friendly sustainable lodging. the chapter concludes by sharing the growing variety of career of options in hotel development and classification¬†along with¬†the¬†employment value they can provide.

Key Terms

1. Capital intensive- Textbook def: Something requiring a lot of capital. My example: Pharmaceuticals is very capital intensive due to all  resources a business must pool to be even remotely successful.

2. Fair return on investment- Textbook def: A reasonable return for the amount invested. My example: Apple’s 40% profit margin is a more than fair return on investment.

3. Feasibility study- Textbook def: An assessment of the viability of a project. My example: an affective feasibility study looks at things like market supply and demand in a specified area.

4. Direct economic impact- Textbook def; The infusion of particular business’ revenue stream into the local economy. My example: The direct economic impact of a restaurant is determined by factors such as product pricing.

5. Indirect economic impact- Textbook def; The potential economic stimulus a local economy can receive purely from the operation of a particular business. My example: A restaurant has an indirect economic impact when it sources its supplies from local vendors.

6. Franchise- Textbook def: 1. The authorization given by one company to another to sell its unique products and services. 2. The name of the business format or product that is being franchised. My example: McDonald’s is synonymous with the concept of franchising.

7. Management contract- Textbook def: A written agreement between an owner and an operator of a hotel or motor inn by which the owner employs the operator as an agent (employee) to assume full responsibility for operating and managing the property. My example: Management contracts  allow for investors to be successful in fields they may not have much knowledge of.

8. Real estate investment trust (REITs)- Textbook def: A method that enable small investors to combine their funds and protects them from double taxation levied against an ordinary corporation or trust; designed to facilitate investment in real estate in much the same way a mutual fund facilitates investment in securities. My example: REITs by nature can be very lucrative because they are obligated to distribute the vast majority of their income to stockholders.

9.Referral associations- Textbook def: Associations that refer guests to other participating members. My example:  A overbooked hotel in referral association will gladly suggest a fellow member hotel to would be guests.

10.vacation ownership- Textbook def: Offers consumers the opportunity to purchase fully furnished vacation accommodations in a variety of forms, such as weekly interval or points in a point-based systems, for a percentage of the cost of full ownership. My example: Timeshares are a popular form of vacation ownership.

 

Chapter 2 Summary

Kesso Diallo

Chapter 2 Summary

It’s basically about improved transportation in the hotel industry and how hotels can be classified based on their locations. Also they state how vacation ownerships offer purchasers many opportunities to furnished stay away places. Lately the talk about International perspective; foreign investments .

Capital intensive
– airlines are considered capital intensive .

Fair return on investment
– example you pay $200 for a stock that pays $5 dividend and u sell the stock In one year for $205 , which mean you made a $10 profit .

Feasibility study
– when you start up a company or you know its growing you must do a feasibility study to if the company will gain success

Direct economic impact
– for example you spend all your time making money you make more and you end up spending more than you think . On special holidays people usually earn bonuses and they spend alot of money on companies which helps them grow.

Indirect economic impact
– managers manage all the money that comes in especially making sure it used properly including the salaries earned by workers.

Franchising
– some companies offer franchising to people who are willing to open the same business as them also they would need to meet certain standards.

Management contract
for example someone earns more and now the person has his or her management contract and gets promoted to handle all responsibilities fully.

Referral Association
My mom has a contract with a franchiser for her restaurant but her best friend who have a deal with a referral association , made a change to another franchiser at a lower price.

Vacation ownership
well my dad travels alot with different airlines so he became a VIP and he earns point for free plane tickets and other bonuses.

Chapter 2 ‘The Hotel Business’

Chapter 2 focuses on the hotel and lodging business as a whole identity. Descriptions of hotel ownership is listed, along with the development of hotels from the past until present time, and how can hotels be developed into a hotel that can lead to a large attraction which leads to more capital. Methods such as franchising and management contracts are taught. Different classification of hotels are listed, & this chapter teaches the function of each classified hotel. This chapter also discusses vacation ownership and how many can invest to have this kind of privilege. last but not least, trends in hotel development are taught through different key terms.

Management Contracts: Contract between hotel and Hotel management companies. Mainly to form an alliance with owners whom are not able to operate hotels in order to improve their hotels.

Franchising: a concept used for companies to expand by using other investors money. Franchising is beneficial because not only do companies make a profit for selling their rights, but it also gives investors the opportunity to grow financially

Example: McDonalds sell their rights to an investor in order for that investor to run his/her own McDonalds. Both franchisee and franchiser benefit from this because one makes money by selling, the other starts making money from investment.

Capital intensive: any form of development or ownership that requires high capital $$$

Fair return on the investment: Making reasonable profits based on your initial investment

Feasibility Study: The study that indicates markets potential, opponents, demand and supply. This study will determine hotels financial success

Summary Operating Statement: list of revenue and expenses for period of time.

Economic Impact of hotels:

Direct economic impact: Capital made only off of guest that effects local community.

Indirect economic impact: Capital made by anyone other than guests (employees, vendors, firms) that impacts local community.

Vacation ownership: an offer in which someone can invest in having the privileged to vacation in various resorts/hotels, for a short or long period of time; similar to a timeshare

Real Estate investment trusts (REITs): Investors with immense assets in real estate whom invest in the hotel business for a reasonable return on the investment.

 

 

Chrisitne NYT Summary #2

Christine Delva

HMGT 1101

Prof. Duchamp

Oct. 6th, 2015

 

New York Time Summary

 

Title: Carnival Announce Ports of Call for Planned Cuba Cruise (Sept 30th, 2015)

Throughout the world everyone loves to travel and visit many different countries. There are probably thousands of people who love to travel on cruises, but I am a shame to say I haven’t been on cruise yet in my life. Few of my friends provide good review about Carnival cruise ships are wonderful and its nice experience to have with love ones. Carnival made a proposed of a new brand for cruise to Cuba to travel two other colonial outside Havana. This will allowed travel tourist to visit other part of Cuba. They are waiting for the Cuban government approval. I was curious why Cuba would not accept this proposal. As result, Americans cannot travel as ordinary tourist to Cuba anymore because the current U.S regulation doesn’t allow them to take part in certain trips. I was totally unaware of laws was passed. These trips are requested for the supporting cultural exchange and economic development for the Cuban people. I found this really interested. Throughout the world they are people who are really trying to make a difference in each and every country. The Carnival states all these projects and goals will begin in May to help build the volunteer team for the entire destination planned.

summary of chapter 2 -Gina

Zhigang  Gao [Gina]                                        HMGT 1101 draft:  Chapter2 summary

10/6/15                                                             Prof. Damien Duchamp

Chapter two focuses on discuss the advantages and disadvantages of each type of hotel. Also focuses on hotel development and ownership.

  1. Capital intensive def: A business process or an industry that requires large amounts of money and other financial resources to produce a good or service. My example: cranes are capital intensive industry and operation cost, their management is becoming more and more important.
  2. Fair return on investment- def: the return that conforms to the rate of similar investments and reflects a fair payment for property. My example: I put twenty- thousands in a shipping company to share the profit. After one year I got thirty- thousands.
  3. Feasibility study- def: is a process that defines exactly what a project is and what strategic issues need to be considered to assess its feasibility, or likelihood of succeeding. My example: Before I run a new business I used do feasibility study with my partner.
  4. Direct economic impact- def: is a measure of the total amount of additional expenditure within a defined geographical area, which can be directly attributed to staging an event. My example: people’s minimum wages low is the direct economic impact for vacation industry.
  5. Indirect economic impact- My example: RMB depreciation indirect economic impact Chinese tourist number went to the United States.
  6. Franchising- is the practice of the right to use a firm’s business model and brand for a prescribed period of time.¬† My example: my friend got franchising of crown bake store which is a chain store, they require all the store have to obey same rule and decorations.
  7. Management contracts – is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise that performs the necessary managerial functions in return for a fee. My example: A hotel management contract details the agreement between the owner of a hotel and its operating company.
  8. Real estate investment trusts (REITs) Рdef: A REIT is a type of security that invests in real estate through propertyor mortgages and often trades on major exchanges like a stock. My example: REITs have become available in many countries outside the United States on every continent on Earth.
  9. Referral associations РMy example: Hotels and motels within a referral association generally share some sort of centralized reservation system and common image such as a logo or advertising
  10. Vacation ownership-My example: vacation ownership benefit for hotel and consumers. Because hotel collected the money they need and consumers save a lot of money.

 

Erick Tecuatl- Chapter 2 Summary

Chapter 2 Summary:
This chapter has a lot of important information in regards to how difficult (in terms of money) opening a hotel can be. There is a lot of work that has to go into opening a hotel, and investors have to make sure that they are getting some profit by analyzing feasibly studies. The chapter talks about how franchising can be risky for business owners, and directly outlines the pros and cons. The chapter also talks about how hotels are classified. Such examples include but are not limited to convention hotels, economy/budget hotels, boutique hotels, and casino hotels. Whilst diversity amongst hotels existed, there are some hotels that offer unique services and have often bizarre characteristics when you stay at one. The chapter also describes a brief description about how some hotels are as successful as they are now.

1. Capital intensive: Something requiring a lot of capital.
My example: A hotel requires a lot of sources to build, like money, space, and time.

2. Fair return on investment: a reasonable return for the amount invested.
My example: The profit made from putting in a certain amount of money to open up the hotel.

3. Feasibility study: examines the market areas demand and supply, including any potential or real competition in the pipeline.
My example: A study that examines the how well shakeshack will do in a certain area, which outlines the main competitors such as Bareburger.

4. Direct economic impact: The impact that comes from just the amount of moneu generated simply by staying at a hotel.
My example: The amount of money Holiday Inn charges would affect the prices around where its located.

5. Indirect economic impact: The long term impact caused by ripple effects.
My example: Holiday inn affects the prices of its competitors.

6. Franchising: concept that allows a company to expand more rapidly by using other peoples money than if it had to acquire its own financing.
My example: Mcdonald’s selling the rights to the restaurant, and begins to expand overseas internationally whilst still profiting the owners of the brand.

7. Management contracts: a written agreement between an owner and an operator of a hotel or motor inn by which the owner employs the operator as an agent (employee) to assume full responsibility for operating and managing a property.
My example: A contract a manager has to sign when employed that states that he/she is responsible for the operations of the hotel.

8. Real estate investment trusts: A method that enables small investors to combine their funds and enables small investors to combine their funds and protects them from the double taxations levies against an ordinary corporations or trust; designed to facilitate investments in real estate in much the same way a mutual fund facilitates investment in securities.

9. Referral associations: associations that refer guests to other participating members.
My example: Getting discounts to a restaurant if you work or stay at a specific hotel.

10. Vacation ownership: Offers consumers the opportunity to purchase fully furnished vacation accommodations in a variety of forms, such as weekly intervals or points in a point based systems, for a percentage of the cost of full ownerships.

Jazmin Rodriguez – Chapter 2 Summary

Chapter Summary

Chapter two explains the many different aspects of the hotel business.  It describes hotel ownership and development. You learn about franchising, management contracts, referral associations, the economic impact of hotels, the different classifications of hotels and vacation ownership.

Additionally, it provides you with the names of some of the most prestigious and unusual hotels.¬† Talks about the future of tourism and it’s expansion often in combination with airlines with the goal of improving the economic conditions in developing countries.

 Key Terms and Concepts

  1. Capital Intensive – My example: Years ago my father wanted to start a new business by opening a new gas station. ¬†Because it was a ¬†capital intensive business and required large amounts of expensive equipments and money; he couldn’t do it.
  1. Fair Return on Investment – My example: My friend Lucy is a baker that works from her home, and receives good financial returns every time she sells a cake.
  1. Feasibility Study – My example: If I win the Mega Millions Jackpot this week; I will hire project managers to complete studies to determine if my proposed ventures will be profitable as well as what risks I will encounter.
  1. Direct Economic Impact – My example: The recent visit of Pope Francisco to New York City had a direct economic impact, based on visitors and organizers.
  1. Indirect Economic Impact – My example: The Budget Manager at the Caesars Palace in Atlantic City, reports quarterly the expenses related to employment for the hotel, and the money spent by the hotel in items to service the guests.
  1. Franchising – My example: I am reviewing the necessary information to franchise a White Castle Restaurant in Boston, MA.
  1. Management Contracts – My example: Donald Trump has management contracts for his hotels, resorts and casinos.
  1. Real Estate Investment Trust (REITs) – My example: All my classmates for HMGT 1101 pooled to buy a hotel and take advantage of the offered benefits under the reits.
  1. Referral Associations – My example: In an effort to improve the overall occupancy of the hotel; the owner joins a referral association.
  1. Vacation Ownership – My example: Many people that I know purchased vacation ownership, the first time they visit Orlando, FL or Cancun, Mexico.

Christine Chapter 2 Summary

Christine Delva

HMGT 1101

Prof. Duchamp

Oct. 5th, 2015

 

Chapter 2

There are different aspects when it comes to Hotel Business. In this chapter it explains the pros & cons of owning a hotel throughout the world. You must have the acknowledgement of franchising and management operation when it come having your own business. Location plays a major role when staring a business. You have to make sure it where can transportation to their destination and have activities such restaurant or store to visit. You have considered the type of service you offered and price must attract to the people eyes. Hotels should have many different amenities such as spa, business center or baby-sitting and etc. can help your business grow as well. Today world owning a hotel business is very competitive and some hotels are franchise under other company just to have a connection in order to grow their own business.

1). Capital Intensive (Example) = The Tempt Agency made a capital intensive decision opening up a contract with New York City Housing Authority to provide job opportunity to the people.

2). Fair Return on Investment (Example) = Jude has a radio station, the business is going well. He decided one year anniversary for business going well. From the event he makes triple the investment from when he just started his business.

3). Feasibility Study (Example) = When a business is starting up, a company have and must do feasibility study to see whether if there business will grow and have a great success.

4). Direct Economic Impact (Example) = If you make more money, you spend more money. Christmas time people get their bonus from work which causes them to spend more money which helps other business to grow.

5). Indirect Economic Impact ( Example) = All general managers manages all the money that comes in the hotel, making sure all the money are spent properly especially starting from the wages or salaries of the staff workers.

6). Franchising (Example) = Subways offers franchising for people who wants to start their own Subway business but would have to meet their qualification.

7). Management Contract (Example) = Mrs. English earn and now has her management contract so her job prompts her to handle all the responsibilities for the operating and managing the hotel property thoroughly.

8). Referral Associations (Example) = Tamara has contract with a franchiser for her beauty salon. But thanks to her brother who has a deal with referral association, he made switch to another franchiser at lower cost to help her business.

9). Real Estate Investment Trust= (Example) = Marriot are protect under real estate investment trust ever since they purchase it and doesn’t have to bother with double taxation from false investors or investments.

10). Vacation Ownership (Example) = My uncle is a frequently flyer with many airlines, so he sign up to become their value customer(VIP) and because of that he gains points, free flights and other things from these airlines.