Robert Christie Mill, Ph.D. School of Hotel, Restaurant, and Tourism Management Daniels College of Business University of Denver
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MILL (Wiley) SECOND ResortsEDITION MANAGEMENT AND OPERATION Robert Christie Mill, Ph.D. School of Hotel, Restaurant, and Tourism Management Daniels College of Business University of Denver S N John Wiley & Sons, Inc. L MILL (Wiley) S N L MILL (Wiley) Resorts MANAGEMENT AND OPERATION S N L MILL (Wiley) S N L MILL (Wiley) SECOND ResortsEDITION MANAGEMENT AND OPERATION Robert Christie Mill, Ph.D. School of Hotel, Restaurant, and Tourism Management Daniels College of Business University of Denver S N John Wiley & Sons, Inc. L MILL (Wiley) This book is printed on acid-free paper. ࠗϱ Copyright ᭧ 2008 by John Wiley & Sons, Inc. All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada Anniversary Logo Design: Richard Pacifico. 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TX911.3.M27M538 2008 647.94068—dc22 2006037901 Printed in the United States of America S N 10987654321 L MILL (Wiley) To Patty S N L MILL (Wiley) S N L MILL (Wiley) CONTENTS FOREWORD xi Chapter 3 MOUNTAIN-BASED RESORTS: PREFACE xv MANAGING THE OPERATION 57 Chapter 1 INTRODUCTION 58 ECONOMICS 60 RESORTS: AN DEMOGRAPHICS 64 INTRODUCTION 1 SKIOGRAPHICS 67 TRIP CHARACTERISTICS 72 INTRODUCTION 2 SNOWBOARDERS 75 TYPES OF RESORTS 8 SNOWTUBING 77 INDUSTRY TRENDS 18 EXPANDING TO MULTI-AGE VISITORS 79 SUMMARY 19 ECONOMIC FEASIBILITY 79 ENDNOTES 19 ANALYZING FINANCIAL STATEMENTS 82 OPERATING CHARACTERISTICS Chapter 2 BALANCE SHEET 83 INCOME STATEMENT 84 MOUNTAIN-BASED RESORTS: CRITICAL RATIOS 86 THE IMPACT OF SUMMER IN THE MOUNTAINS 88 DEVELOPMENT ON SUMMARY 95 ENDNOTES 95 OPERATIONS 21 INTRODUCTION 22 THE DEVELOPMENT PROCESS 22 Chapter 4 DESIRABLE SITES 26 GENERAL DESIGN GUIDELINES 33 BEACH RESORTS AND CAPACITY 34 MARINAS: THE IMPACT OF SKI RUNS 39 DEVELOPMENT ON SKI LIFT NETWORK 40 BASE AREA 43 OPERATIONS 96 OTHER WINTER SPORTS ACTIVITIES 46 INTRODUCTION 97 SUSTAINABLE DEVELOPMENT 51 THE DEVELOPMENT PROCESS 98 MOUNTAIN RESORT MATURATION MARINAS 104 CYCLE 54 GENERAL DESIGN PRINCIPLES 111 S SUMMARY 55 SUMMARY 122 N ENDNOTES 55 ENDNOTES 122 L MILL (Wiley) viii CONTENTS Chapter 5 PRO SHOP 200 GOLF CART FLEET 202 BEACH RESORTS AND USE OF TECHNOLOGY 208 MARINAS: MANAGING THE RENOVATION PLAN 211 OPERATION 124 SUMMARY 211 ENDNOTES 211 INTRODUCTION 125 BEACH RESORTS: PROFILE OF THE BEACH RESORT GUEST 125 MANAGING THE RESOURCE 128 Chapter 8 DESTINATION RESORT MARINAS 134 RESORT OPERATIONS: BOATERS 135 MANAGING THE OPERATION 135 THE IMPORTANCE OF BLUE FLAG 139 RECREATIONAL AMENITIES 215 SUMMARY 144 INTRODUCTION 216 ENDNOTES 144 THE DEVELOPMENT PROCESS 216 DEVELOPING AN AMENITY STRATEGY 219 Chapter 6 COMMUNITY MANAGEMENT GOLF/TENNIS–BASED STRUCTURES 223 MANAGEMENT AND OPERATIONS 226 RESORTS: THE IMPACT OF SUMMARY 231 DEVELOPMENT ON ENDNOTES 231 OPERATIONS 145 INTRODUCTION 146 GENERAL GUIDELINES 147 Chapter 9 PLANNING AND DEVELOPMENT 148 THE UNIQUENESS OF GOLF COURSE TYPES 155 DESIGN PRINCIPLES 163 TIMESHARE RESORT TENNIS 174 OPERATIONS 233 SUMMARY 179 RESORT MANAGEMENT 234 ENDNOTES 179 INTRODUCTION 234 TIMESHARE GUESTS/OWNERS 235 Chapter 7 ACTIVITIES 240 GOLF-BASED RESORTS: MARKETING 240 MARKETING THE TIMESHARE PRODUCT 241 MANAGING THE OPERATIONS 244 OPERATION 182 RESERVATIONS AND THE FRONT DESK 247 INTRODUCTION 183 HOUSEKEEPING 250 GOLF RESORTS 183 MAINTENANCE AND ENGINEERING 253 GOLFERS 183 ACCOUNTING AND FINANCE 256 MARKET SEGMENTS 186 FINANCING THE TIMESHARE 256 OPERATING CHARACTERISTICS 190 SUMMARY 258 S TOURNAMENTS AND EVENTS 194 ENDNOTES 258 N L MILL (Wiley) CONTENTS ix Chapter 10 ROOM SETUP: DRY ROOMS 326 COMBINATIONS 326 RESORT OPERATIONS: MARKETING 326 THE IMPORTANCE OF TRENDS 327 GUEST ACTIVITIES 260 SWIMMING POOLS 328 WATERPARKS 330 INTRODUCTION 261 SUMMARY 334 GUESTS’ NEEDS 263 ENDNOTES 334 DEFINING GOALS AND OBJECTIVES 266 RENNAISANCE CLUBSPORT: CLUSTER AND ACTIVITY ANALYSIS 267 THE CONCEPT OF THE UPSCALE PROGRAM AREAS 273 HOTEL/HEALTH CLUB UNIFICATION 335 PROGRAM PLANNING 273 PROGRAM EVALUATION 281 SUMMARY 283 ENDNOTES 283 Chapter 13 SPECIALTY RESORTS 343 Chapter 11 INTRODUCTION 344 RESORT OPERATIONS: THE NATURE-BASED ENVIRONMENTAL IMPORTANCE OF RETAIL 284 ACTIVITIES 344 ECOTOURISM 347 INTRODUCTION 285 ECOLODGES 347 TOURIST SHOPPING 285 ADVENTURE 350 RESORT RETAIL 290 ADVENTURE TRAVEL IN AMERICA 352 LAYOUT AND DESIGN 291 SUMMARY 364 MERCHANDISING 293 ENDNOTES 364 GETTING YOUR MESSAGE NOTICED 296 OPERATIONS 299 CUSTOMER SEGMENTS 300 PROFIT RATIOS 303 SUMMARY 305 Chapter 14 ENDNOTES 305 CRUISE SHIPS: FLOATING RESORTS 367 Chapter 12 INTRODUCTION 368 MARKETING THE CRUISE PRODUCT 372 SPAS, POOLS, AND INDOOR STAFFING THE CRUISE SHIP 384 WATERPARKS 307 MANAGING THE HOTEL DEPARTMENT 387 INTRODUCTION 308 MANAGING FOOD AND BEVERAGE 391 DEVELOPMENT OF SPAS 308 MANAGING FACILITIES 393 LAYOUT AND DESIGN 313 HEALTH, SAFETY, AND SECURITY 396 TREATMENTS 316 MANAGING THE OPERATION 400 WATER THERAPY 319 CRUISE DESTINATIONS 403 CLIENT PREPARATION 324 SUMMARY 411 S ROOM SETUP: WET ROOMS 324 ENDNOTES 412 N L MILL (Wiley) x CONTENTS Chapter 15 CASINO CAGE, CREDIT, AND COLLECTIONS 432 CASINOS 413 SLOT MANAGEMENT 434 INTRODUCTION 414 TABLE GAME OPERATIONS 439 THE GAMING MARKET 415 CASINO ACCOUNTING 441 U.S. GAMING MARKET 415 PLAYER RATING SYSTEMS 443 FROM CASINOS TO RESORTS 417 TABLE GAME HOLD AS A MARKET 421 MANAGEMENT TOOL 448 CASINO MANAGEMENT 428 CASINO MARKETING 450 ORGANIZATIONAL STRUCTURE 428 SUMMARY 459 STAFFING 430 ENDNOTES 459 CONTROL 430 INDEX 461 S N L MILL (Wiley) FOREWORD I wrote the foreword to the First Edition of Bob Mill’s definitive book, Resorts: Management and Operation, almost seven years ago. Reflecting on my own lifetime of experience in the lodging and resort industries, I remember thinking at the time that a tutorial on managing and operating a resort doesn’t get any better than this. Well . I was wrong. With his Second Edition, Bob has enhanced an already seminal look at this unique industry. He deserves high marks for assuring that this text remains not only relevant, but cutting-edge. Resort management is a business that changes every day . literally. In fact, the industry is changing faster now than ever before. The elements that catalyze this change are the exact elements Bob expands on in his Second Edition. With my new position as President and CEO of Hershey Entertainment and Resorts—a company that provides family entertainment in a clean, ‘‘green,’’ family- fun format—I’m even more aware of the importance of the family to the resort business. It’s not just about mom and dad going to golf school at a resort . it’s about the whole family doing it together. It’s not just about mom and dad enjoying a 5-Star or 4-Diamond resort experience . it’s about the whole family creating memories together that will last a lifetime. Bob’s second edition includes an en- hanced focus on the role of these entertainments in creating the type of reality that customers want to perceive while they are on holiday. This intense focus on the resort industry is important because, as I wrote in 2000, perhaps no word in the English language evokes the immediate and electric response of the word ‘‘resort.’’ For an over-worked, under-rested, and mega-stressed populace, a week at a resort is often seen as THE ANSWER. It is salvation. It is the key to everything that ails, exhausts, and maddens us. The mantra of our time seems to be, ‘‘I don’t have any problem that two weeks of sun and fun won’t solve!’’ This visceral response to the word resort is the product of personal expe- rience, lavish color photographs that leap from the pages of travel magazines, and the gloating post-vacation reports from coworkers who return from ‘‘ten days in heaven.’’ Each of these sales, marketing, and public relations hits gives us a glimpse of the public face of the resort experience.