Types of Accommodation

Why This Matters

When you're tested on accommodation types, you're really being assessed on your understanding of market segmentation, service levels, and guest experience design. The hospitality industry doesn't just offer places to sleep—it creates products tailored to specific traveler needs, budgets, and motivations. Exams will ask you to identify which accommodation type fits a particular guest profile, or explain how properties differentiate themselves in a competitive market.

Think about the underlying principles: ownership models, service intensity, target demographics, and location strategy. A hostel and a luxury resort both provide lodging, but they represent completely different business models and guest value propositions. Don't just memorize what each accommodation type offers—know why it exists, who it serves, and how it positions itself in the market.

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Full-Service Properties: Maximum Amenities, Premium Pricing

These accommodations provide comprehensive services and facilities, commanding higher rates by eliminating the need for guests to leave the property. The business model relies on capturing guest spending across multiple revenue streams—rooms, food and beverage, recreation, and retail.

Hotels

• Range from budget to luxury classifications—star ratings and brand tiers help guests understand service expectations before booking
• Full-service amenities typically include room service, housekeeping, concierge, and on-site dining, creating a one-stop hospitality experience
• Strategic urban locations near business districts and tourist attractions maximize occupancy from both corporate and leisure segments

Resorts

• Destination properties offering comprehensive vacation experiences with recreation, dining, and entertainment all on-site
• All-inclusive packages bundle rooms, meals, drinks, and activities into one price, simplifying guest budgeting and increasing property revenue capture
• Location-driven appeal—beaches, mountains, or theme park proximity defines the resort's identity and target market

Cruise Ships

• Floating resorts combining transportation and accommodation into a single product, with multiple ports of call included
• Onboard revenue centers include dining venues, entertainment, casinos, spas, and shore excursions—the cabin is just the starting point
• Captive audience model maximizes per-guest spending since passengers have limited alternatives once aboard

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Limited-Service Properties: Value-Focused Efficiency

These accommodations strip away extras to offer lower price points, targeting cost-conscious travelers who prioritize location and basic comfort over amenities. The business model emphasizes operational efficiency and high room turnover.

Motels

• Motorist-oriented design with exterior room entries and parking directly outside—built for quick check-ins and easy vehicle access
• Highway and roadside locations serve travelers in transit rather than destination visitors
• Minimal amenities keep operating costs low, passing savings to budget-conscious guests

Hostels

• Dormitory-style shared rooms dramatically reduce per-guest costs, making travel accessible to budget travelers
• Communal spaces and social programming turn the shared model into a feature, attracting backpackers seeking connection
• Youth and budget traveler focus—the target demographic values experience over privacy

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Home-Style Accommodations: Space and Authenticity

These options provide residential-style environments, appealing to guests who want more space, kitchen facilities, or a local experience. The value proposition centers on comfort, flexibility, and feeling "at home" while traveling.

Bed and Breakfasts (B&Bs)

• Small, owner-operated properties delivering personalized service and local knowledge that chain hotels can't replicate
• Breakfast included—often homemade or locally sourced, creating a distinctive hospitality touchpoint
• Residential neighborhood locations offer authentic community immersion rather than tourist-district experiences

Vacation Rentals

• Private homes, apartments, or cabins rented short-term through platforms like Airbnb and Vrbo
• Full kitchens and living spaces appeal to families and groups needing more room than hotel configurations allow
• Disruptive market force—this segment has fundamentally challenged traditional hotel demand in many destinations

Serviced Apartments

• Hotel-apartment hybrid combining kitchen facilities and residential space with housekeeping and front-desk services
• Extended-stay focus serves business travelers, relocating families, and guests needing weeks or months of accommodation
• Flexible living arrangements reduce the isolation of long-term hotel stays while maintaining professional service standards

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Alternative Ownership and Outdoor Options

These accommodations represent non-traditional models—either in ownership structure or in the type of experience offered. They serve niche markets with specific motivations beyond standard lodging needs.

Timeshares

• Fractional ownership model allowing buyers to purchase usage rights for specific weeks each year
• Resort-style amenities in vacation destinations, providing hotel-quality facilities with ownership benefits
• Cost-sharing approach makes premium vacation properties accessible without full ownership investment—though resale value and flexibility limitations are common criticisms

Camping and RV Parks

• Outdoor accommodations for tents, campers, and recreational vehicles in natural settings
• Basic amenities like restrooms, showers, and hookups keep costs minimal while supporting self-sufficient travelers
• Nature-focused appeal attracts guests prioritizing outdoor experience over comfort and convenience

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Quick Reference Table

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Self-Check Questions

1. Which two accommodation types both target budget-conscious travelers but differ significantly in their approach to guest privacy and social interaction?

2. A business executive needs housing for a three-month project assignment and wants kitchen facilities plus regular housekeeping. Which accommodation type best fits this profile, and why?

3. Compare and contrast resorts and cruise ships: What guest experience elements do they share, and what fundamental difference defines each model?

4. How have vacation rentals disrupted the traditional accommodation market, and which property types face the most direct competition from this segment?

5. If an FRQ asks you to recommend accommodations for a family reunion of 15 people who want to cook meals together and stay in one location, which options would you evaluate and what trade-offs would you discuss?