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.

People are afraid of change. For me, it was a huge change from being a computer science major, to being in hospitality. What inspired this big change? The answer is simple; I wasn’t happy. Being in a classroom full of students that had a talent for programming and math, I soon began to feel that I didn’t quite belong there. As I progressed into the major, I made it my goal to finish the program and earn at least an associate in computer science. After struggling, withdrawing, and even failing some classes, I did not walk away with anything, and successfully completed the program. I then had a huge choice to make as to which major I wanted to pursue; I chose hospitality.

When I left high school, I was uncertain about my future and didn’t really have any goals. My family needed some financial help so I was actually quite desperate for a job. Whether it was retail, construction, or even just working at a local deli, I was up to work for anyone. I finally got a call back from a small company called Bareburger, and I was hired as just a busboy. I was quite astounded as to how fun working can be, and quickly found enjoyment just from being a busboy. My managers were quickly impressed with how had I can actually work and how I had a talent for learning things very quickly even if it was first job. I was quickly promoted after only a couple months into a counter-person and soon after a server. I quickly aspired for more. The restaurant got a nice facelift, and built a bar. Not long after that, I began bartending. It was there where I picked up some major communication skills, and began meeting many interesting people. It was there where I became a valuable employee, being one of the few to be comfortable on any position at the restaurant. This is where I realized that there had to be more to restaurants, and I wanted more. My next goal is to gain some experience and manage the corporate store, maybe even open up my own restaurant.

Even though it is a relatively small restaurant, I learned a lot from just working there. Currently, I have been employed with the company for just under two years. My personal strengths are that I am an extremely hard worker, and just sheer determination. I learned that once I set my mind on something, it is easy to overcome obstacles and I don’t quit. I love to eat as much as I love to learn. Hospitality is my home.