The World of Hospitality

Chapter 1
The World of Hospitality
Introduction
Hospitality: mean meeting the needs of guests with kindness and goodwill.Hospitality Industry: provides services to people away from homeFood, lodging (place to sleep), recreation, and travelHospitality industry is sometimes called the travel & tourism industryTravel industry or tourism industryService is at the heart of the hospitalityindsutry
Size & Economic Impact
Travel & Tourism is the world’s largest industryExpected to group by 4% each year through 2019Has a major impact on national economies around the worldMore than 18 million people in the US work in the hospitality industryIt is the second largest employer (health care is 1st)
Size & Economic Impact
Hospitality generates more than $1 trillion each year in the USWhenever people travel, they spend moneyInternational visitors to the US place over $100 BILLION into our economyFederal, state, and local government collect taxes on many hospitality purchasesMajor impact on countries
Diversity
Diverse: made of elements that are different from each otherMany businesses in the hospitality industry are different from other businessesThink about when you used the hospitality industryPeople who work in the industry are also different
Complexity
Term used to describe the hospitality industryComplex: made of 2 or more partsSome of the parts are complex in that they cannot be separated from one another
Food & Beverage
Food & Beverage Industry: businesses that prepare food for customers – also known as the foodservice industryKnown as F & BRange from casual to fancy, fine diningFood and beverage provide nearly 76% of all meals eaten in the US todayAmerican food & beverage is the largest and most varied part of the hospitality industry (employs over 11 million people)The number of people in the foodservice industry is expected to double in by 2015
Lodging
Lodging: place to sleep for one or more nightsAccommodation: another word often used to mean a place to sleepLodging Industry: consists of businesses that prove overnight accommodations.Lodging Property: business that provides overnight accommodationsLodging businesses vary from expensive resort hotels to budget motelsAccommodations can be found to fit any price range and level of serviceThere are more than 4 MILLION guest rooms in approximately 60,000 different facilities throughout the USThere are about 13 MILLION rooms worldwideWhat are some examples of lodging properties?
Recreation
Recreation: any activity that people do for rest, relaxation, and enjoymentThe goal of recreation is to refresh a person’s body and mindDifferent people enjoy different types of recreationRecreation industry: consists of businesses that provide activities for rest, relaxation, and enjoymentFour types of recreation:Entertainment, attractions, spectators sports, and participatory sports
Recreation Industry
Entertainment business: provides a show for you to watch (movies, live theater, concerts)Attractions: places of special interest to visit (natural scenery, museums, zoos, historical sites)Spectator Sports: sports that you watch others play (football game)Participatory Sports: sports that you take part in yourself (skiing, snowboarding, etc.)
Travel & Tourism
Travel industry: consist of businesses that physically move people from one place to another. (Also known as the transportation industry)Taxi services, car rentals, bus services, train services, airlinesTourism industry: consists of businesses that that organize and promote travel and vacationsTravel agencies, tour operators, cruise companies, meeting & convention planners, convention & visitors bureaus, and local and national tourism bureausOne of the main functions is to plan vacations & toursVacation may involve several different hospitality businessesPackage: Trip that includes several segments of the hospitality industry such as transportation, lodging, meals, and entertainment
Travel & Tourism (continued)
Tourism industry promotes and encourages travel
Role of Travel
Travel is the basis for much of the hospitality industryTwo main types of travel:Business & PleasurePleasure travel: travel that is done rest & relaxationPaid for by discretionary income (money that you have left over after all your expenses/bills are paid)Vacation: period of time during which a person rests and is free from daily obligations (school, work)346 MILLION trips a year are taken for pleasureAverage 3.7 nights per trip
Business Travel
Business travel: travel that people do as part of their jobsEmployer decides where you and when you go210 MILLION trips a year are taken
Working Together
All of the segments of the hospitality industry work together to successfully meet customer needsOn a typical trip, guests use businesses from all four segmentsIf a worker in any segment makes a bad impression, the guest may go away with a bad impression of the whole city, state, country
Business Structures
You need to know about business structures in hospitalityTwo basic structuresSingle UnitMultiple Units
Single Unit
Single unit business: business that only has one location and one unit (Also called an independent business)Not part of any other businessOwner is responsible for all the business decisionsMake decisions about décor, recipes, staff, how much to charge, etc.
Multiple Unit
Multiple Unit Business: business that consists of more than one unit or more than one location2 StructuresChainFranchise
Chain
Chain: business that has more than one location under the same name and ownershipExample: Olive Garden (owned by Darden Restaurants, Inc.)Darden decides on décor, menu items, prices, and even what servers will wearMost important aspect of a chain is the brandBrand: name, logo, tagline, or any combination of these that distinguishes a product from its competitors (association)
Franchise
Franchise: the right to do business using the brand and products of another businessFranchise is actually part of a chainChain owner can give the outside person the right to use the chain’s name and sell the chain’s productsFranchise Agreement: legal document that sets up a franchise. It includes the rules and standards that the outside person must follow in running the franchiseFranchise Fee: Amount of money the outside person pays the chain ownerFranchisor: The person who owns the chainFranchisee: The person who busy the rights to use the brand
Professional Associations
Professional Association: group of people who have organized themselves to work to improve themselves, their profession, and their industry (aka professional organizations)AH&LA (American Hotel & Lodging Association)NRA (National Restaurant Association)Work in 5 areas:Professional developmentStandards & ethicsNetworkingPublic relationsGovernment relations
Professional Development
Professional development: process of continuing your education in your profession after you leave school (continuing professional education)Present educational workshops, seminars, and lectures on the latest developmentsTake place at conventions, trade shows
Standards & Ethics
Organizations also develop standards for the practice of their professionCertificate ProgramsCode of Ethics: statement of proper, professional behavior for members of the profession
Networking
Networking: process of meeting people in your professionSocial gatheringsProvides opportunity to meet others to problem solve, learn new ideas, and to learn about career opportunitiesFUN
Public Relations
Public Relations: providing information about the industry to the general publicTwo purposes:Inform the public about the profession to attract new professionalsBuild a positive image of the profession and industry
Government Relations
Government relations: informing local, state, or national governments about the issues that are important to the professionStaff members who speak with legislators about issues affecting the industry and profession
Value of Involvement
Many advantagesScholarships to studentsMore up to date on current issues/trainingStay informed and do a better jobEmployers appreciateGive you the opportunity to grow
Career and Technical Student Organizations
Career and Technical Student Organization (CTSO): organization for students with an interest in a career area, such as hospitality or business. The purpose is to give students the opportunity to develop interpersonal leadership, career, and technical skillsUsually a chapter inthe schools