2. THE NATURE AND
SCOPE OF TOURISM
AND HOSPITALITY
INDUSTRY
Distinctive Characteristics of Tourism and
Hospitality Sector | Structure of the Tourism
Industry | Employment Opportunities in the
Tourism and Hospitality Sector | Tourism
Business Value Chain | Two Approaches to Value
Chain in Tourism | Tourism Multiplier Effect | The
Tourism Sectors
Traveling is not an alien concept to the
human race. It is so deeply rooted in our
DNA’s that archeological records across
the ages would reveal that in the dawn of
the appearance of the earliest human
beings, they have indeed traveled an
unimaginable distance in all the faces of
the earth. During the early times, it was
apparent that travel is more commonly
motivated by psychological needs. Food,
water, safety or acquisition of resources
trade and some extent, religion were the
early travel motivations. Eventually, when
people in the early times learned the
concept of agriculture and domesticating
animals, they learned how to settle down
and civilizations started to comeabout.
3. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
one of the most important characteristics
of the tourism industry. The
products/services in the tourism and
travel industry are “consumed as they are
produced”.
PERISHABILITY
4. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
Products of the tourism industry always differ.
It is always about the experience that the
customer makes. It is challenging to deal with
the customers perception of the product
(perceive quality) as it is highly affected by
numerous uninfluenceable aspects such as
weather, construction sites, other customers
etc. hence, the product is very inconsistent
and cannot be standardized.
INCONSISTENCY
5. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
Talking about hotels and other accommodations,
there is usually a big capital lockup in the assets.
Hotels have furniture, restaurants, TV-sets laundry-
service, pools, saunas etc. - invested capital that has
to pay off. And that's not all - all those investments
are attached to one locality which means that those
tourism companies are to a huge extent dependent
on the attractiveness of the region, the country, its
surroundings and so forth.
INVESTMENT AND IMMOBILITY
6. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
The tourism industry builds entirely upon people.
The interaction between the staff and the
customer determines the perceived product
quality. Unlike tangible products where the
customer buys certain features, production
quality, durability etc. the holiday quality results
from persons interactions starting with the
information and booking process over the stay
up to the journey home.
PEOPLE ORIENTED
7. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
Most travel products are first sold and then
produced and consumed at the same time. This
is an aspect which clearly sets tourism apart
from tangible products. Tourism products can
only be consumed at the supplier's premise.
INSEPARABILITY
8. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
Tourism products are intangible. Tourism is all
about the time spent and the experience made.
The products sold by tourism companies both
can't be reproduced or reused. Nor can the
feeling of consumption be captured to its full
extent. Tourism is a subjective picture planted
into the customers' minds.
INTANGIBILITY
9. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
Travel products are fairly inflexible in terms of
fluctuation. Hotels cannot change their
capacities quickly enough to react on
spontaneous fluctuations in demand. Hence,
such companies try to balance between high and
low demands, so that it's not too much of a pain
for the company when restaurant tables remain
empty and for customers when there are no
more tables available.
INFLEXIBILITY
10. DISTINCTIVE
CHARACTERISTICS OF THE
TOURISM AND
HOSPITALITY INDUSTRY
Offers and products by tourism companies are
generally easy to copy. When the neighbor hotel
adds a masseur to its SPA offer you more or less
only need somebody with a firm grip and here
you go. So how can hotels build a unique selling
proposition? Originality, consistency, location
etc.- but not by hoping that their services are not
imitable.
IMMITABILITY
11. STAKEHOLDERS IN THE
TOURISM AND
HOSPITALITY
The tourism and hospitality industry is very broad industry which
also includes service sectors such as restaurants, logging, event
management, theme parks, transportations and other additional
fields. The tourism and hospitality industry accounts for several
billions across the world which depends on the disposal income of
customers to facilitate them in leisure time. The tourism and
hospitality industry can be divided into eight major segments.
These are accommodation, events and conferences, adventure
tourism and recreation, tourism services, attractions,
transportation, food and beverage and travel trade.
12. ANALYZING THE
STAKEHOLDERS’ ROLES
WITHIN TOURISM AND
HOSPITALITY INDUSTRY
In tourism and hospitality industry, the organizations or individuals who
have put capital or efforts in the establishment or development of the
industry can be referred to stakeholders of the industry. In addition to
this, different stakeholders in private and public sector organizations in
tourism and hospitality industry can exist (Belinda, 2008).
Government
Industrialists
Customers/Tourist
Employees
Local Communities
13. The most important stakeholder of the
tourism and hospitality industry is
because policies and regulations of the
tourism and hospitality industry are
shaped by the government. In context
of overall tourism and hospitality
industry, government influences the
practices of organizations in following
respects: consultation with the private
sector and other communities, it plans
the policies of the tourism industry
Government Industrialists
Industrialists include travel agencies,
organizations in the industry, and
transport agencies. The organizations
in the tourism and hospitality industry
include hotels, restaurants, and
shopping centers. The practices of all
these organizations can affect the
operations of the tourism and
hospitality industry, as a whole.
Customers/Tourist
Customers or tourists are also
important stakeholders in the tourism
and hospitality industry. This group of
stakeholders demands value, quality
and high customer care. These are the
major sources of money for the
organizations operating in the tourism
and hospitality industry.
Employees
Employees are the internal
stakeholders of the tourism and
hospitality industry. They have high
level interest in the internal policies of
the tourism and hospitality industry.
They demand quality work
environment, job security,
compensation and truthful
communication in the organizations.
Local Communities
In tourism and hospitality industry, local
communities are important stakeholders.
This is because they attract tourists and
impact on their intentions of visiting a
particular place. They can have stake in the
tourism and hospitality industry in terms of
job security, environment protection.
promotion of local products and services and
promotion of local culture and values.
16. IMPACT OF EXTERNAL
FACTORS IN THE
TOURISM AND
HOSPITALITY
INDUSTRY
The reason why for the increase in leisure time is people
has more time off from work or school holidays. Most
company vacation policies have become more liberal.
Besides that, the number of legal, paid holidays has
increased and, significantly for tourism, more of these
are timed so as to supply day weekends. Although the
typical work week has stayed at 40 hours for many
years, flexible scheduling arrangements have also
added to people's leisure time.
Leisure Time
17. When incomes rise and home economies are stable, people across the
world feel free to use their capital on pleasurable experiences rather than
save for an uncertain future.
New Money
There are also other enabling factors which include:
availability of travel such as flights to different locations;
suitable products like range of different holidays;
owning a car, makes travel more easy: marketing of a
destination for bringing attention; and ease of booking.
These types of enabling factors allow the people to act
on their motivators. When investigate the of customers'
needs and wants, it will be of help to find out more
enabling factors.
Enabling Factor
Ticket prices are dropping thanks to a blend of factors, from lower fuel
prices, carrier competition, and a rise of low-cost airlines. While this news is
unwelcome in the airline industry. which is using ancillary fees to increase
profit margins, it benefits travelers who can get more from their purchasing
power.
Affordable Airfare
The growth of business travel is particularly steep due to relentless pace of
economic growth in different countries. Industry consolidation, pressure to
book directly instead of through online travel sites, and stricter cancellation
policies help hotels capture a greater share of every business income
Corporate Travel
Experiential travel focuses on experiences rather than consumer goods, for
instance offering travelers the chance to create once-in-a-lifetime memories
through a cultural exchange or wildlife encounter.
Experiencial Travel
18. Similar to tourism, technology is an ever changing and
sometimes unstable business. Better communication,
transport and safety have encouraged new customers
to the industry. Besides that, the main impact of new
technology on consumers has been Internet, which has
given people the chance to be more independent and
make their own travel and holiday plans and
arrangements. Through technological advances, online
booking has been one of the biggest factors in affecting
tourism, recreation and leisure in today's world.
Technology Factors Economists argue that there are a variety of factors
(other than the price of tourism) that could affect the
demand for tourism. These factors include:
Income
The income of the consumers. When the population
that is the source of the tourism goes into a
recession, for example, demand for tourism drops.
The tastes of the consumers. For example, if
vacations go out of style (if, perhaps, consumers
believe that it is "greener" to stay home than to take
an airplane to some exotic vacation spot), the
demand for tourism drops.
The cost of complementary goods. If you think of air
travel as a complementary good to tourism, you will
realize that an increase in the price of air travel will
cause a decrease in the demand for tourism.
19. Demographic change will have major implications for
the tourism sector over the coming decades but also
presents important opportunities This is among the
central findings of the recently published UNWTO
European Travel Commission (ETC) report on
"Demographic Change and Tourism." The report sets out
the main demographic trends worldwide and in major
current and emerging source markets and describes
how destinations and the private sector can make the
most of these in terms of product development and
marketing.
Demographic
20. Trends in Tourism
and Hospitality
Industry
The tourism and hospitality industry is
extremely competitive, and it is
important for businesses operating
within it to keep up with the latest
trends. in order to avoid being left
behind. Furthermore, keeping pace
with the wider industry is one of the
ways owners can help to ensure their
business is delivering an excellent
customer experience. In this part, you
will learn about ten of the most
significant tourism and hospitality
trends right now and in the future.
21. Do-it-Yourself or DIY trips are also
becoming more and more popular, with
blogs, vlogs, and books (e-books and
tangible) that let you do your trip your
way. Couple that with hostels and
Airbnbs and you have a recipe that
supports traveling as a way of life.
Vlogs are perfect sources of itineraries,
travel budgets, and travel hacks that
equip anyone to travel.
DIY is still a thing Sustainability is the way to go
Rehab (short for rehabilitation) is
apparently a new buzzword for the
local tourism industry. It's only been
months since the island of Boracay
was opened.
Camping and Glamping
Camping is, well, camping. You get a
sleeping bag or a tent, bring your own
food, and find a place to sleep. It's very
sustainable albeit tough because you
need to find a place where it's okay to
do that. Glamping, on the other hand, is
camping leveled up. It's like staying in a
hotel, but you're in a tent.
Farm Tourism is a thing
What do is you visit a farm, you learn
what it's about, what the farmers do,
and what-not. It's a great way of
promoting what has sustained our
country prior to the many wars-a way
for us to go back to our roots.
Pilgrimage
The Philippines is predominantly Catholic
ergo its handful of centuries- old churches,
basilicas, and cathedrals that have stood the
test of time both in the big city and distant
islands. This fact brings about tons of people
poking interest in the Philippines as a
pilgrimage site. So, it shouldn't come as that
travel agencies often include trips to
churches.
22. Another trend that those in the
hospitality industry are getting to grips
with is the desire for tourists or
travelers to enjoy local experiences.
Many people do not simply want to
experience a life similar to their own,
but in a different location. Instead, they
want to experience the authentic way
of life in the location they visit.
Local Experience
Healthy and Organic Food &
Drinks
The trend for healthy food and drinks
extends to hotels, catering services and
even holiday as well, with healthier
room service options, as well as
healthier drinks sold behind bars.
Smart Hotels
Smart hotel is a hotel that makes use
of internet- enabled devices, which are
capable of sending data to one
another. Smart hotel designs are tied in
with the idea of the Internet of Things'
and have emerged as a more popular
concept since smart speakers and
smart hubs became popular consumer
products.
Artificial Intelligence
Artificial intelligence plays a number of
different roles within the hospitality
industry, but the main one is to improve
customer service. One example of this
is Al-powered chatbots, which can be
used for online customer interactions,
removing lengthy waiting times and
providing swift, intelligent responses to
questions.
Bleisure Travel by
Millennials
'Bleisure' is the name given to trips which
combine business travel with leisure
activities, and it is increasingly popular,
especially among the millennial generation.
As an example, a traveler may initially visit a
location to attend a business meeting or
conference, but then extend their stay to turn
it into a holiday.
Other
trends...
23. Virtual Reality
This is one of the most potentially
game-changing hospitality trends,
because VR technology has the
capacity to digitally alter a person's
entire surroundings. This can be
applied in a number of interesting ways
by those in the hospitality industry.
Hotels might use VR technology as part
of their booking processes, allowing
users to experience a highly realistic
digital version of their hotel rooms
before booking.
Augmented Reality
Augmented reality technology is similar to virtual
reality technology in many ways, but rather than
creating a new digital environment for users, it is
concerned with enhancing real-world environments
through graphical or informational overlays.
Augmented reality apps can be designed so that users
can point their phone at a restaurant and see reviews,
or opening times. Hotels and other accommodation
types can also use augmented reality to provide
interactive tourist information maps within their
properties, or to create fun opportunities to create
user generated content.
Other
trends...
25. Banquets and
Conferences
A demanding, yet high energy career
working in hotels, and conference
centers setting up rooms and
servicing events. If you enjoy seeing
an event executed from the initial
planning stages through to its end,
this may be for you. From organizing
a 500-guest NGO Gala to raise for
humanity aid to political receptions
and corporate holiday parties, your
clientele is always changing, creating
a unique environment that is never
boring.
26. Food and Beverage
Responsible for all things
related to food and beverage
from ordering products to
hiring staff and balancing profit
and loss sheets. The career
requires exceptional social and
analytical skills. The ideal
candidate is organized, calm
under pressure, service
oriented and business minded.
27. Office
Reception
From the very first moment of
a guest's arrival, the front
office serves as the face of the
company and its standards of
service. Knowledgeable not
only about the products they
offer, these individuals are
friendly, customer service
oriented and can give insights
on the surround area.
28. Resort Management
Oversee all operations
departments from the front desk
and security to housekeeping and
food and beverage. Responsible
for the overall success of the
facility, this is a very diverse
position that manages a wide
variety of people. A strong
leader, that is both service
oriented and business savvy, will
exceed in this management role.
29. Restaurant
Management
A dynamic position leading a
team of employees servicing food
and beverage. A day in the life of
a restaurant manager can go
from tasting wines with different
distributors to bussing tables on
a busy night. Also responsible for
the overall function of the
operation, inventory, ordering
and budgeting often top the list
of a manager's to-do list.
30. Spa and Wellness
Management
Responsible for the day-to-
day operations of a health or
beauty spa. Based on the
size of the operation the
position can be customer
service all the marketing,
schedules, focused or more
business based, handling
and training.
31. Concerts, Festivals and
Exhibitions
Event planning and project
management dealing with
large scale events. This role
involves studying the brand,
identifying the target
audience, devising the event
concept and coordinating all
the technical aspects before
launching or hosting an
event.
32. Wedding
Coordination
It all comes down to the details
and building relationships. Brides
want to have confidence in their
wedding coordinator and in doing
so, this individual needs to be
extremely organized and love
executing special events with
many moving components, a need
for both structure and creativity in
the workplace. A rewarding career
for the right individual. making
lasting memories.
33. Airlines
Jump on board and travel
the world as a flight
attendant. Manage the
inflight services taking care
of food and beverage, duty
free and other customer
service requests. Upon
landing you are in a new
location. traversing the
globe on a regular basis.
34. Amusement
Parks
Make every child's eyes light
up. Manage the overall
operations as a member of
the leadership team or be
ready to welcome amusement
park goers behind the desk
selling tickets, supervising a
food and beverage outlet or
controlling the rides
themselves.
35. Casino
The gaming service industry is
huge and jobs are typically
found in casinos or at the
racetrack. Someone interested
in this career may work as a
dealer, slot machine attendant,
pit boss or an overall operations
manager dealing with the
activities, in addition to any
lounges or food and beverage
outlets offered to the players.
36. Catering
A mash up of sales, project
management and and beverage,
this is a fun and vigorous career.
Whether you're a chef creating
the menu or coordinator
organizing the vendors, this
position is constantly on-the-go
fielding queries and giving
instructions. A great position
incorporating sales with event
planning.
37. Cruises
Head out to sea. Very similar
to a hotel, but you are
floating from port to port.
Wark in sales, food and
beverage, housekeeping,
maintenance or security.
Maybe you strive to be the
big boss, in which case there
are a lot of moving parts to
oversee 24 hours a day.
38. Consulting
Work for a firm or start your
own business, this career
requires a base of
experience in order to advise
your clients. Whether in
hotels, restaurants or travel,
becoming an expert in your
trade will allow you to give
the soundest guidance.
39. Trainers/Assessors/Educ
ators/Instructors
Teachers in tourism and hospitality
discipline areas in which the person
has specific training and
competence. As such, the
trainer/assessor/ educator/instructor
is expected to plan, organize, and
teach in a manner that encourages
development in harmony with the
institution's objectives, mission
vision and also promotes and directs
successful student learning in
keeping with the leaming-centered
values and goals of the school.
40. Start your own
business
The sky is the limit. Whatever
you dream you can create. From
opening a restaurant in Cebu to
offering sightseeing tours in
Batanes, there is no end to the
possibilities in the tourism and
hospitality industry. With a little
ingenuity, good business sense
and creative genius you can start
a company of your own and scale
to great magnitudes.
43. Beyond price, there are other reasons why specific tourism products
(for example airline service or certain types of holidays or resorts) are
chosen, as opposed to others. The demand for tourism is dependent on
whether the potential traveler has the ability to travel (i.e. travel
facilitators) the desire to travel (i.e. travel motivators). Leisure time
and disposable income are two of the most important travel
facilitators in tourism. They are called facilitators because they are
factors that may actually facilitate or enable individuals to travel.
There are other factors that may also affect the persons' ability to
travel. Alternatively, these may limit the ability to travel. These factors
include:
44. Age can affect the ability to travel either through health
restrictions, or through financial limitations;
Stage in the family cycle: Travelers may have the money and the
time at disposal, but family commitment may preclude travelling;
Political stability and peace: Although this issue may not prevent
travelling: it may limit the tourists' choice of destinations. There
may be restrictions that may be imposed on nationals of some
countries for political reasons, including; conflicts, wars or acts of
terrorism.
45. Different people will consider different qualities in destinations. For
example, individuals may value sporting facilities, others may prefer
social life and night clubbing. Travel for leisure and pleasure could
involve a wide range of human emotions and drives that may be
difficult to explain. However, the motivations to travel relate to the
individuals' will to travel. The motivators are the factors which could
explain why people do what they do, they also seem to justify the
individuals' behavioral intention, They are intrinsic, and could relate to
the human beings' inner feelings. emotions and beliefs, as they arise
out of need and wants.
46. Motivators may be conscious and subconscious and are
often deeply embedded in one's Tourism planners,
developers and promoters need to identify why people
choose to travel, when some necessity compels them to
do so. What motivates them to travel to a holiday
destination? It is obvious that tourism satisfies some
human needs. The question is, which ones? The travel
motivators may be divided into four categories, as
featured in Table.
47.
48. Undoubtedly, a large number of people wish to travel.
Therefore, the tourism industry has a vested interest in
determining: What motivates individuals to travel? What
motivates them to engage in specific tourism activities,
and to choose one destination as opposed to another?
The prime motivation to engage in pleasure travel is the
desire to be elsewhere, even temporarily from the
routine constraints and stresses of everyday life.
49. Sharpley (1994) contended that the motivation to travel
may be attributed to extrinsic or intrinsic factors.
Extrinsic tourist motivation is often influenced by a
need to escape from the pressures and conditions of
life in a tourist's home society. Therefore, the need for
tourism could have been developed from the individuals'
anti-thesis to work.
50. Conversely the individuals' intrinsic motivation to travel
may arise from deep-rooted psychological needs, such
as self-esteem, or a need for companionship. Sharpley
(1994) held that the tourists' motivation results from a
variety of social, economic, demographic and
psychological factors that are peculiar to each individual
tourist. The authors went on to suggest that these
factors are not constant and may change through time.
