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The World of Hospitality

The World of Hospitality. Chapter 1. Introduction. Hospitality: mean meeting the needs of guests with kindness and goodwill. Hospitality Industry: provides services to people away from home F ood, lodging (place to sleep), recreation, and travel

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The World of Hospitality

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  1. The World of Hospitality Chapter 1

  2. Introduction • Hospitality: mean meeting the needs of guests with kindness and goodwill. • Hospitality Industry: provides services to people away from home • Food, lodging (place to sleep), recreation, and travel • Hospitality industry is sometimes called the travel & tourism industry • Travel industry or tourism industry • Service is at the heart of the hospitality indsutry

  3. Size & Economic Impact • Travel & Tourism is the world’s largest industry • Expected to group by 4% each year through 2019 • Has a major impact on national economies around the world • More than 18 million people in the US work in the hospitality industry • It is the second largest employer (health care is 1st)

  4. Size & Economic Impact • Hospitality generates more than $1 trillion each year in the US • Whenever people travel, they spend money • International visitors to the US place over $100 BILLION into our economy • Federal, state, and local government collect taxes on many hospitality purchases • Major impact on countries

  5. Diversity • Diverse: made of elements that are different from each other • Many businesses in the hospitality industry are different from other businesses • Think about when you used the hospitality industry • People who work in the industry are also different

  6. Complexity • Term used to describe the hospitality industry • Complex: made of 2 or more parts • Some of the parts are complex in that they cannot be separated from one another

  7. Food & Beverage • Food & Beverage Industry: businesses that prepare food for customers – also known as the foodservice industry • Known as F & B • Range from casual to fancy, fine dining • Food and beverage provide nearly 76% of all meals eaten in the US today • American 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

  8. Lodging • Lodging: place to sleep for one or more nights • Accommodation: another word often used to mean a place to sleep • Lodging Industry: consists of businesses that prove overnight accommodations. • Lodging Property: business that provides overnight accommodations • Lodging businesses vary from expensive resort hotels to budget motels • Accommodations can be found to fit any price range and level of service • There are more than 4 MILLION guest rooms in approximately 60,000 different facilities throughout the US • There are about 13 MILLION rooms worldwide • What are some examples of lodging properties?

  9. Recreation • Recreation: any activity that people do for rest, relaxation, and enjoyment • The goal of recreation is to refresh a person’s body and mind • Different people enjoy different types of recreation • Recreation industry: consists of businesses that provide activities for rest, relaxation, and enjoyment • Four types of recreation: • Entertainment, attractions, spectators sports, and participatory sports

  10. 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.)

  11. 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, airlines • Tourism industry: consists of businesses that that organize and promote travel and vacations • Travel agencies, tour operators, cruise companies, meeting & convention planners, convention & visitors bureaus, and local and national tourism bureaus • One of the main functions is to plan vacations & tours • Vacation may involve several different hospitality businesses • Package: Trip that includes several segments of the hospitality industry such as transportation, lodging, meals, and entertainment

  12. Travel & Tourism (continued) • Tourism industry promotes and encourages travel

  13. Role of Travel • Travel is the basis for much of the hospitality industry • Two main types of travel: • Business & Pleasure • Pleasure travel: travel that is done rest & relaxation • Paid 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 pleasure • Average 3.7 nights per trip

  14. Business Travel • Business travel: travel that people do as part of their jobs • Employer decides where you and when you go • 210 MILLION trips a year are taken

  15. Working Together • All of the segments of the hospitality industry work together to successfully meet customer needs • On a typical trip, guests use businesses from all four segments • If a worker in any segment makes a bad impression, the guest may go away with a bad impression of the whole city, state, country

  16. Business Structures • You need to know about business structures in hospitality • Two basic structures • Single Unit • Multiple Units

  17. Single Unit • Single unit business: business that only has one location and one unit (Also called an independent business) • Not part of any other business • Owner is responsible for all the business decisions • Make decisions about décor, recipes, staff, how much to charge, etc.

  18. Multiple Unit • Multiple Unit Business: business that consists of more than one unit or more than one location • 2 Structures • Chain • Franchise

  19. Chain • Chain: business that has more than one location under the same name and ownership • Example: Olive Garden (owned by Darden Restaurants, Inc.) • Darden decides on décor, menu items, prices, and even what servers will wear • Most important aspect of a chain is the brand • Brand: name, logo, tagline, or any combination of these that distinguishes a product from its competitors (association)

  20. Franchise • Franchise: the right to do business using the brand and products of another business • Franchise is actually part of a chain • Chain owner can give the outside person the right to use the chain’s name and sell the chain’s products • Franchise Agreement: legal document that sets up a franchise. It includes the rules and standards that the outside person must follow in running the franchise • Franchise Fee: Amount of money the outside person pays the chain owner • Franchisor: The person who owns the chain • Franchisee: The person who busy the rights to use the brand

  21. 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 development • Standards & ethics • Networking • Public relations • Government relations

  22. 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 developments • Take place at conventions, trade shows

  23. Standards & Ethics • Organizations also develop standards for the practice of their profession • Certificate Programs • Code of Ethics: statement of proper, professional behavior for members of the profession

  24. Networking • Networking: process of meeting people in your profession • Social gatherings • Provides opportunity to meet others to problem solve, learn new ideas, and to learn about career opportunities • FUN

  25. Public Relations • Public Relations: providing information about the industry to the general public • Two purposes: • Inform the public about the profession to attract new professionals • Build a positive image of the profession and industry

  26. Government Relations • Government relations: informing local, state, or national governments about the issues that are important to the profession • Staff members who speak with legislators about issues affecting the industry and profession

  27. Value of Involvement • Many advantages • Scholarships to students • More up to date on current issues/training • Stay informed and do a better job • Employers appreciate • Give you the opportunity to grow

  28. 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 skills • Usually a chapter in the schools

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