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Chapter 1 The Spirit of Hospitality. After Reading and Studying This Chapter, You Should Be Able to:. Describe the characteristics of the hospitality industry and its interrelation with Tourism Discuss why service has become such an important facet of the hospitality industry
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After Reading and Studying This Chapter, You Should Be Able to: • Describe the characteristics of the hospitality industry and its interrelation with Tourism • Discuss why service has become such an important facet of the hospitality industry • Suggest ways to improve service • The Disney Service Modeel • Explain corporate philosophy and Total • Quality Management
The Pineapple Tradition • Symbol of welcome, friendship and hospitality • Recognized internationally • Foundation for concept of “SERVICE”
Hospitality and Tourism • Largest and fastest growing industries • Common dynamics • Delivery of services and products • Customer and guest impressions are critical
Travel Air Cruise Rail Coach Auto Ecotourism Lodging Hotels Motels Meetings, Conventions and Expositions Restaurants Managed services Recreation Attractions Gaming Parks Recreation Scope of Hospitality and Tourism Industry
Characteristics of the Hospitality Industry • Product is intangible and perishable • No such thing as business hours • Hospitality operations run on a 24 hour basis all year round • Characterized by shift work
Reasons Behind Inconsistency in Service • Education system does not teach service • Little priority on training in service • Over-reliance on Technology • Lack of motivation
“7 Deadly Sins of Service” • Apathy • Brush-off • Coldness • Condescension • Robotics • Rule book • Runaround
For Success in Service: • Focus on the guest • Understand the role of the guest-contact employee • Weave a service culture into education and training systems • Thrive on change
Moments of Truth • Examples in a restaurant • Guest calls for reservation • Guest tries to find restaurant • Guest parking • Guest welcome • Guest is told table is not ready • Guest goes to lounge for a cocktail
Corporate Philosophy • Philosophy… • Shift towards greater employee empowerment • Strong links to TQM • Service philosophy is a way of life
Corporate Culture • Culture… • Overall style and feel of the company • Mission Statement • Central purposes, strategies and values
CorporateCulture • Goal • Broad statement geared towards accomplishment • Objective • Quantification of goals • Strategy/Tactics • Actions needed to reach goals
The Disney Service Model • “We Create Happiness” • Product and Brand Understanding • Guests’ Perspective • Personal Responsibility • It Begins with a SMILE • Eye Contact, Respect, Value the Magic, Initiate guest contact, Creative Solutions, Thanks • Cast Members • Empowered and rewarded
Trends • Globalization • Safety and security • Diversity • Service • Technology • Legal issues • Changing demographics • Price-value • Sanitation
Economic PrinciplesDemand • DEMAND CURVE: a graph showing how much of a given product people will be willing to buy at different prices Price Quantity Demanded
Economic PrinciplesDemand • "Law" of Demand:As the price of a good goes up, the quantity demanded of that good goes down • demand curves slope downward Price Quantity Demanded
Economic PrinciplesDemand • Changes in Demand: Movement along the demand curve • Shift in Demand: The whole curve moves up or down Price Quantity Demanded