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Chapter 1

 The Hospitality
Industry and You



   Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved
WHAT IS HOSPITALITY?
• Many peoples’ definition of hospitality extends
  only to restaurants and hotels
• In reality, it goes far beyond this and includes
  any organization that provides food, shelter and
  other services to people away from home
• When viewed in this light, the hospitality
  industry can be quite large and far reaching
• Also, the numerous career opportunities
  become readily apparent
WHAT IS HOSPITALITY?
• Students considering entering the field of
  hospitality should take into consideration all of
  the types of businesses that hospitality
  encompasses but also, the various career
  streams in functional areas across segments
  (such as accounting, finance, marketing, human
  resources, etc.)
• One of the common threads that binds all
  segments together is the service orientation
  that exists – one must possess this in order to
  be successful
WHAT IS HOSPITALITY?
• An interesting note: Over the last 10 years,
  other types of businesses have begun to
  recognize the unique combination of skills that
  hospitality students possess – the combination
  of sound business and management along with
  a service orientation
• As a result, other industries have begun to
  recruit hospitality graduates including health
  care and retail
WHAT IS HOSPITALITY?
• This is a particularly exciting time to be
  associated with the industry given the ample
  career opportunities, the economy, new
  developments, emerging markets,
  internationalization of companies and
  concepts, etc.
• The industry faces certain challenges, too,
  which will be discussed throughout the course
PRIMARY SECTORS
So, what are some of the primary sectors within
the hospitality industry? They include:
  •   Lodging (not just limited to traditional hotels)
  •   Foodservice (not just limited to restaurants)
  •   Gaming operations
  •   Private clubs
  •   Theme parks
  •   Destination management companies
PRIMARY SECTORS (CONTINUED)
• Meetings and conventions (planning and
  operations)
• Managed park environments (natural)
• Resorts
• Senior living
• Managed services
• Consulting services
THE MANAGER’S ROLE
The role of the manager is critical in creating the
environment in which the following will occur:
• Making the guest feel welcome
• Making things work for the guest
• Maintaining a profitable (or “fiscally
  responsible”) operation

A degree in hospitality management is designed
to allow students to be effective in these areas
HOW TO PREPARE FOR A CAREER IN THE
      HOSPITALITY INDUSTRY
• Work your way up through an organization
   – No guarantee
   – Only learn one way
• Earn a general degree or degree in the liberal arts
   – May not provide as quick, or direct, access to opportunities
• Earn a general business or management degree
   – Provides the good sound business knowledge but may not be
     specific enough
WHY DO STUDENTS STUDY
    HOSPITALITY MANAGEMENT?
• Personal work experience
• Family background
• Contact with other students
• Enjoy people, food, travel, etc.
• Opportunities for employment and
  advancement
• Desire to own their own business
• Desire to be independent
EMPLOYMENT OPPORTUNITIES
• Most segments of the hospitality industry are
  projected for continued growth in the number
  of management positions
• Opportunity to advance as companies grow
• Some segments are greatly outpacing the
  average
• New and emerging segments of the industry
• Growth in franchise opportunities
• Increasing interest in food and travel as
  population ages
COMBINING EDUCATION
            AND WORK EXPERIENCE
• The prevailing philosophy in hospitality education is that
  the best way to the top is through a strategic combination
  of education and experience
• The education component is self-explanatory – it is the
  result of past results and future expectations
• The experience component is two-fold
   – Some of the opportunities will come from the department through
     internships, etc.
   – Other opportunities will come from your own initiatives looking for
     summer jobs and part time work—be strategic about how you
     choose your jobs and how you progress
COMBINING EDUCATION
           AND WORK EXPERIENCE
• Not all learning comes strictly from classroom
  learning and/or on-the job learning
• There are other opportunities for learning
  about your chosen profession.
  These include:
     •   Field trips
     •   Student projects
     •   Student clubs
     •   Sales blitzes
STUDENT CLUBS
• Eta Sigma Delta, International Hospitality
  Management Society
   – As a traditional honor society, it meets the
     standards of the Association of College Honor
     Societies; hospitality students in their junior
     year with a 3.0 or better grade point average are
     eligible for membership
• Others: Wine clubs, Restaurant
  associations, Club managers associations, Travel
  and Tourism Research Association, etc.
LEARNING STRATEGIES
            FOR THE WORKPLACE
• Try to understand the organization
   – Formal organization
   – Informal organization
• Try to understand the physical plant
   – Work flow
   – Guest flow
• Try to understand the different functional areas
   – Back-of-the-house
   – Front-of-the-house
   – Try to work in each
GETTING A JOB
•   Newspapers (not!)
•   Web sources
•   Friends
•   Family
•   University placement office
•   Job postings
•   Networking
•   Cold calling
WHAT DO EMPLOYERS LOOK FOR?
•   Dedication and commitment
•   Desire to serve others
•   Decision making skills
•   Communication skills
•   Experience
•   Involvement
•   Technical skills
•   See An Employer’s View….
GOALS AND OBJECTIVES
•   Income
•   Professional status
•   Potential job satisfaction
•   Skilled jobs v. unskilled jobs
•   Others considerations: Hours, Level of
    responsibility, Work environment, Mentoring
OUTLOOK FOR HOSPITALITY
The outlook for the industry is very positive but
there are several trends/factors that are
affecting how the industry operates and the
products and services that are offered to
customers
OUTLOOK FOR HOSPITALITY
The effects of September 11th and other recent
events have resulted in:
 • Travel restrictions
 • Safety and security issues
 • Cost of operations
 • Government regulations
 • Destinations that have been affected
OUTLOOK FOR HOSPITALITY
                Polarization
• Limited Service versus Service Intensive
  organizations
• Has led to growth in certain segments of the
  industry (luxury hotels, limited service
  restaurants)
• Has generally been positive for the industry as a
  whole as well as for consumers
OUTLOOK FOR HOSPITALITY
               Accelerating Competition
•   Competition across segments has increased
    dramatically
•   International competition has also increased
•   Competition had led to more emphasis on
    creating specialized niches and better
    management practices
•   Factors include: Cost of money and demand for
    specific services
OUTLOOK FOR HOSPITALITY
             Service is the Difference
• Service is more and more what brings
  customers back (or prevents them from
  returning)
• Companies that provide excellent service
  inevitably lead their segments
• Not limited to hospitality
OUTLOOK FOR HOSPITALITY
                Value Consciousness
•   Customers are getting smarter and more
    selective
•   Customers look for value in all hospitality
    experiences and purchases
•   Value doesn’t mean the lowest price
•   Customers also tend to balance time and
    money spent
OUTLOOK FOR HOSPITALITY
                   Technology
• The hospitality industry has been slow in terms
  of adapting to new technologies but the
  industry has made some inroads
• Perhaps the segment that is the most advanced
  is the airline industry, both in terms of on-line
  interaction with customers as well as up-to-
  the-minute pricing
• New technologies are being introduced every
  year
OUTLOOK FOR HOSPITALITY
                  Empowerment
• Empowerment is the act of providing additional
  levels of responsibility to both employees and
  managers
• This has been the result of cost cutting efforts
  but also as a result of trying to improve
  customer satisfaction
• It has been able to happen because of the new
  “breed” of employees as well as improved
  technology and communication
OUTLOOK FOR HOSPITALITY
                      Diversity
• Hospitality organizations are becoming more
  diverse in response to changes in society as
  well as demographic shifts and becoming more
  aware of the importance of a diverse
  organization
• Many companies have established themselves
  as leaders in this area
OUTLOOK FOR HOSPITALITY
              Concern with Security
• Concern for personal security and safety has
  resulted in destinations, organizations and
  society in general attempting to provide a
  greater level of safety for travelers
• Examples include airline marshals, hotel
  security forces, cameras, and increased
  education
OUTLOOK FOR HOSPITALITY
             Concern with Sanitation
• Increases in food-borne illness has resulted in a
  raised concern on the part of consumers
• Raised concerns in the US probably began with
  the Jack-in-the Box incident in the 1970s
• More recent incidents have also raised
  questions about the quality of the food supply
  and even the water supply (e.g., bottled water)
OUTLOOK FOR HOSPITALITY
                   Sustainability
• Going “green” is not new, but it reflects
  industry-wide focus on corporate responsibility
• Most hotels encourage guests to reuse towels
  and many have embraced low-cost changes
  such as lighting
• Guests prefer to support businesses that are
  concerned about the industry
OUTLOOK FOR HOSPITALITY
         Globalization (Last but not least)
• Globalization is perhaps one of the greatest
  factors affecting the industry as it impacts every
  facet of operations including:
   – Competition
   – Work force
   – Travel patterns
   – Company alliances, etc.

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Ch01

  • 1. Chapter 1 The Hospitality Industry and You Copyright © 2010 by John Wiley & Sons, Inc. All Rights Reserved
  • 2. WHAT IS HOSPITALITY? • Many peoples’ definition of hospitality extends only to restaurants and hotels • In reality, it goes far beyond this and includes any organization that provides food, shelter and other services to people away from home • When viewed in this light, the hospitality industry can be quite large and far reaching • Also, the numerous career opportunities become readily apparent
  • 3. WHAT IS HOSPITALITY? • Students considering entering the field of hospitality should take into consideration all of the types of businesses that hospitality encompasses but also, the various career streams in functional areas across segments (such as accounting, finance, marketing, human resources, etc.) • One of the common threads that binds all segments together is the service orientation that exists – one must possess this in order to be successful
  • 4. WHAT IS HOSPITALITY? • An interesting note: Over the last 10 years, other types of businesses have begun to recognize the unique combination of skills that hospitality students possess – the combination of sound business and management along with a service orientation • As a result, other industries have begun to recruit hospitality graduates including health care and retail
  • 5. WHAT IS HOSPITALITY? • This is a particularly exciting time to be associated with the industry given the ample career opportunities, the economy, new developments, emerging markets, internationalization of companies and concepts, etc. • The industry faces certain challenges, too, which will be discussed throughout the course
  • 6. PRIMARY SECTORS So, what are some of the primary sectors within the hospitality industry? They include: • Lodging (not just limited to traditional hotels) • Foodservice (not just limited to restaurants) • Gaming operations • Private clubs • Theme parks • Destination management companies
  • 7. PRIMARY SECTORS (CONTINUED) • Meetings and conventions (planning and operations) • Managed park environments (natural) • Resorts • Senior living • Managed services • Consulting services
  • 8. THE MANAGER’S ROLE The role of the manager is critical in creating the environment in which the following will occur: • Making the guest feel welcome • Making things work for the guest • Maintaining a profitable (or “fiscally responsible”) operation A degree in hospitality management is designed to allow students to be effective in these areas
  • 9. HOW TO PREPARE FOR A CAREER IN THE HOSPITALITY INDUSTRY • Work your way up through an organization – No guarantee – Only learn one way • Earn a general degree or degree in the liberal arts – May not provide as quick, or direct, access to opportunities • Earn a general business or management degree – Provides the good sound business knowledge but may not be specific enough
  • 10. WHY DO STUDENTS STUDY HOSPITALITY MANAGEMENT? • Personal work experience • Family background • Contact with other students • Enjoy people, food, travel, etc. • Opportunities for employment and advancement • Desire to own their own business • Desire to be independent
  • 11. EMPLOYMENT OPPORTUNITIES • Most segments of the hospitality industry are projected for continued growth in the number of management positions • Opportunity to advance as companies grow • Some segments are greatly outpacing the average • New and emerging segments of the industry • Growth in franchise opportunities • Increasing interest in food and travel as population ages
  • 12. COMBINING EDUCATION AND WORK EXPERIENCE • The prevailing philosophy in hospitality education is that the best way to the top is through a strategic combination of education and experience • The education component is self-explanatory – it is the result of past results and future expectations • The experience component is two-fold – Some of the opportunities will come from the department through internships, etc. – Other opportunities will come from your own initiatives looking for summer jobs and part time work—be strategic about how you choose your jobs and how you progress
  • 13. COMBINING EDUCATION AND WORK EXPERIENCE • Not all learning comes strictly from classroom learning and/or on-the job learning • There are other opportunities for learning about your chosen profession. These include: • Field trips • Student projects • Student clubs • Sales blitzes
  • 14. STUDENT CLUBS • Eta Sigma Delta, International Hospitality Management Society – As a traditional honor society, it meets the standards of the Association of College Honor Societies; hospitality students in their junior year with a 3.0 or better grade point average are eligible for membership • Others: Wine clubs, Restaurant associations, Club managers associations, Travel and Tourism Research Association, etc.
  • 15. LEARNING STRATEGIES FOR THE WORKPLACE • Try to understand the organization – Formal organization – Informal organization • Try to understand the physical plant – Work flow – Guest flow • Try to understand the different functional areas – Back-of-the-house – Front-of-the-house – Try to work in each
  • 16. GETTING A JOB • Newspapers (not!) • Web sources • Friends • Family • University placement office • Job postings • Networking • Cold calling
  • 17. WHAT DO EMPLOYERS LOOK FOR? • Dedication and commitment • Desire to serve others • Decision making skills • Communication skills • Experience • Involvement • Technical skills • See An Employer’s View….
  • 18. GOALS AND OBJECTIVES • Income • Professional status • Potential job satisfaction • Skilled jobs v. unskilled jobs • Others considerations: Hours, Level of responsibility, Work environment, Mentoring
  • 19. OUTLOOK FOR HOSPITALITY The outlook for the industry is very positive but there are several trends/factors that are affecting how the industry operates and the products and services that are offered to customers
  • 20. OUTLOOK FOR HOSPITALITY The effects of September 11th and other recent events have resulted in: • Travel restrictions • Safety and security issues • Cost of operations • Government regulations • Destinations that have been affected
  • 21. OUTLOOK FOR HOSPITALITY Polarization • Limited Service versus Service Intensive organizations • Has led to growth in certain segments of the industry (luxury hotels, limited service restaurants) • Has generally been positive for the industry as a whole as well as for consumers
  • 22. OUTLOOK FOR HOSPITALITY Accelerating Competition • Competition across segments has increased dramatically • International competition has also increased • Competition had led to more emphasis on creating specialized niches and better management practices • Factors include: Cost of money and demand for specific services
  • 23. OUTLOOK FOR HOSPITALITY Service is the Difference • Service is more and more what brings customers back (or prevents them from returning) • Companies that provide excellent service inevitably lead their segments • Not limited to hospitality
  • 24. OUTLOOK FOR HOSPITALITY Value Consciousness • Customers are getting smarter and more selective • Customers look for value in all hospitality experiences and purchases • Value doesn’t mean the lowest price • Customers also tend to balance time and money spent
  • 25. OUTLOOK FOR HOSPITALITY Technology • The hospitality industry has been slow in terms of adapting to new technologies but the industry has made some inroads • Perhaps the segment that is the most advanced is the airline industry, both in terms of on-line interaction with customers as well as up-to- the-minute pricing • New technologies are being introduced every year
  • 26. OUTLOOK FOR HOSPITALITY Empowerment • Empowerment is the act of providing additional levels of responsibility to both employees and managers • This has been the result of cost cutting efforts but also as a result of trying to improve customer satisfaction • It has been able to happen because of the new “breed” of employees as well as improved technology and communication
  • 27. OUTLOOK FOR HOSPITALITY Diversity • Hospitality organizations are becoming more diverse in response to changes in society as well as demographic shifts and becoming more aware of the importance of a diverse organization • Many companies have established themselves as leaders in this area
  • 28. OUTLOOK FOR HOSPITALITY Concern with Security • Concern for personal security and safety has resulted in destinations, organizations and society in general attempting to provide a greater level of safety for travelers • Examples include airline marshals, hotel security forces, cameras, and increased education
  • 29. OUTLOOK FOR HOSPITALITY Concern with Sanitation • Increases in food-borne illness has resulted in a raised concern on the part of consumers • Raised concerns in the US probably began with the Jack-in-the Box incident in the 1970s • More recent incidents have also raised questions about the quality of the food supply and even the water supply (e.g., bottled water)
  • 30. OUTLOOK FOR HOSPITALITY Sustainability • Going “green” is not new, but it reflects industry-wide focus on corporate responsibility • Most hotels encourage guests to reuse towels and many have embraced low-cost changes such as lighting • Guests prefer to support businesses that are concerned about the industry
  • 31. OUTLOOK FOR HOSPITALITY Globalization (Last but not least) • Globalization is perhaps one of the greatest factors affecting the industry as it impacts every facet of operations including: – Competition – Work force – Travel patterns – Company alliances, etc.