2016 DHT1113 Topic 1 Overview of the Hospitality Industry

1. Overview of the Hospitality
industry
DHT1113
Introduction to Hospitality and Tourism Industry
Perak College of Technology
Laura Law

2. OUTLINE
• The Scope of the Hospitality Industry
• Characteristics of the Hospitality Industry
• Service-The Mission and Product of Hospitality
• Pursuing Opportunities in Hospitality

3. After Reading and Studying This Chapter,
You Should Be Able to:
• Describe the characteristics of the hospitality
industry
• Explain corporate philosophy
• Discuss why service has become such an important
facet of the hospitality industry
• Suggest ways to improve service

4. THE SCOPEOF THE HOSPITALITYINDUSTRY
Topic 1 Overview of the Hospitality Industry

5. Hospitality and Tourism
•Largest and fastest growing industries
•Common dynamics:
• Delivery of services and products
• Customer and guest impressions are
critical

6. About hospitality
History of hospitality
• The meaning of the word
“hospitality” comes from
HOSPICE (a home
providing care for the
sick or terminally ill -
end-of-life care)
The Pineapple Tradition
• The pineapple has enjoyed a
rich and romantic heritage as
a symbol of welcome,
friendship, and hospitality
• Pineapples were brought back
from the West Indies by early
European explorers during
the seventeenth century
• From that time on the
pineapple became the
favored fruit of royalty and
the elite
• Today, it is globally recognized
as a symbol of hospitality

7. The Pineapple Tradition
•Symbol of welcome, friendship, and
hospitality
•Recognized internationally
•Foundation for concept of “SERVICE”

8. Scope of Hospitality and Tourism
Industry
• Travel
• Air
• Cruise
• Rail
• Coach
• Auto
• Ecotourism
• Lodging
• Hotels
• Motels
• Meetings, Conventions,
and Expositions
• Restaurants
• Managed services
• Recreation
• Attractions
• Gaming
• Parks
• Recreation

9. Figure 1-1
Scopeof the Hospitality-TourismIndustry

10. The objectives of hospitality
industry
1. Making the guests feel welcome personally
This requires both a friendly manner on your part toward the guest and an
atmosphere of “liberality and good will” among the people who work with you in
serving the guest. That often translates to an organization in which workers get along
well with one another.
2. Making things work for the guests
Everything needs to be clean and in working order before the guests step foot on the
establishment. A hospitality system requires a lot of work and the manager must see
that it is done properly and maintained at all times.
3. Making sure that the operation will continue to provide service and
meet its budget
As a manager, the key to achieving this objective lies in achieving a controlled profitable
operation. A good term to describe this management concern is “conformance to
budget.”

12. CHARACTERISTICSOF THE HOSPITALITY
INDUSTRY
Topic 1 Overview of the Hospitality Industry

13. 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

14. Characteristics of the Hospitality
Industry
1. The physical products of
hospitality, e.g. food and
drink in a restaurant or the
actual hotel room, are
products that are sold at a
price to the guests or
customers (e.g. the price a
guest paid for renting a hotel
room, or the price a
customer paid for buying a
meal in a restaurant).
2. These are often regarded as
the tangible aspects of
hospitality
1. The qualities of staff and the
way they deliver the service
are often more important than
the tangible products in
making a hospitality
experience satisfactory or
unsatisfactory or these are the
intangible aspects of
hospitality
2. Inseparability of Production
and Consumption

15. SERVICE-THEMISSIONAND PRODUCTOF
HOSPITALITY
Topic 1 Overview of the Hospitality Industry

16. Business Structures
•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. CORPORATE PHILOSOPHY
Topic 1 Overview of the Hospitality Industry

22. Corporate Culture
•Culture:
• Overall style and feel of the company
•Mission statement:
• Central purposes, strategies, and values

23. A Cup of Kindness
• Customer service is a central focus of
hospitality
• Our job is to enhance the lives of those people
(guests, customers, passengers, etc.) to whom
we serve
• We begin by understanding what they need
• Kindness is demonstrated by making everyone feel
welcome
• Quality customer service requires that we make all
guests feel comfortable
• We all have a need to feel important

24. Moments of Truth
• Term created by Jan Carlson – Scandinavian
Airlines System
• These are guest encounters
• Every hospitality organization has thousands of
moments of truth every day
• Some of them include:
• A guest calls the restaurant for a table reservation
• A server takes an order
• A server brings the check
• A guest departs the restaurant

25. Sample of disney
land

26. The Disney Approach to Guest Service
• The Disney mission statement is simple: “We
create happiness.”
• The key elements of Disneyland guest services
include:
• Hiring, developing, and retaining the right people
• Understanding their product and the meaning of the
brand
• Communicating the traditions and standards of
service to all cast members
• Training leaders to be service coaches
• Measuring guest satisfaction
• Recognizing and rewarding performance

27. Disney Service Model
• Smile
• Make Eye contact
• Respect and welcome all guests
• Value the magic
• Initiate guest contact
• Creative service solutions
• End with a “thank you”

28. “Seven Deadly Sins of Service”
1. Apathy
2. Brush-off
3. Coldness
4. Condescension
5. Robotics
6. Rule book
7. Runaround

29. CAREER DIRECTION IN THE
HOSPITALITY INDUSTRY
Topic 1 Overview of the Hospitality Industry

30. 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)
• Hospitality generates
more than $1 trillion
each year in the US
• Whenever people travel,
they spend money
• Federal, state, and local
government collect taxes
on many hospitality
purchases
• Major impact on
countries

31. 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

32. 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

33. Hospitality Spirit
• Works to create memories
• Everyday guests rely on us for service
• Passion is in the service element
• People with a service spirit are happy to do
something extra to make the guest’s
experience memorable

34. Service, Service, Service!
• Service is defined as “the act or means of
serving”
• To serve is to “provide goods and services for”
and “be of assistance to”
• It is critical to give our guests exceptional service
each encounter
• The hospitality industry can be a good choice for
entrepreneurs who prefer to do their own thing
(i.e., a bar, catering company, event
management, restaurant, tour guide, night club,
wedding planner, etc.)

35. Figure1-1
CareerPaths

36. Conclusion
A business approach toward hospitality industry:
- be able to communicate with customers in the
hospitality environment;
- develop positive image and organisational
reputation;
- contribute to good customer service;
- avoid misunderstandings and complaints;
- follow organisational standards for personal
presentation, etc.

37. Welcome future leaders!
•Hospitality industry is an exciting
place to be:
•It’s fascinating
•It’s fun
•It offers competitive pay
•It offers advancement opportunities