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Introduction to hospitality industry



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Introduction to hospitality industry

  1. 1. Introduction To The Hospitality Industry
  2. 2. The Word ‘Hospitality’ • Encompasses all aspects of tourism, hotel and catering (foodservice) industry. • Relatively modern word, meaning the friendly and generous treatment of guests and strangers. • ‘Catering’ refers to offering facilities to people, especially the provision of food and beverages. • The internationally understood term ‘foodservice’ is now also used.
  3. 3. The Global Hospitality Industry • Tourism is an essential part of any economy and main sector bringing in foreign currency. • Provides travellers with food, drink, and/or accommodation. • Largest and fastest-growing sector.
  4. 4. Contribution to the Global Economy • Tourism directly contributed $2.6 trillion (3.2%) to global GDP in 2017 - equivalent to the size of the UK economy. • Total (direct and indirect) contribution to global GDP was $8.3 trillion, equivalent to 10.4%. • Supported 313 million jobs, 1 in 10 jobs around the world. • US$1.5 trillion exports (6.5% of total exports, 28.8% of global services exports), US$882 billion investment (4.5% of total investment). • The global Tourism sector grew at 4.6%, much faster than the economy as a whole (3% growth during 2017)
  5. 5. Sectors of the Industry • Hotels and other tourist accommodation • Restaurants, fast food, takeaway • Events/banqueting/conferencing/exhibitions • Leisure attractions • Industrial catering • Welfare catering • Transport catering • Outdoor catering (off-premises/event catering) • Motorway service stations • Retail stores
  6. 6. Types of business a. Public limited companies b. Private companies: • sole trader • self-employed • partnership • small/medium business • limited liability company
  7. 7. Key influences affecting the industry • Cultural factors • Social trends/lifestyle • Amount of disposable income • Inflation • Available credit • Regulation – taxation, GST, tourism • Media – television, advertising, magazines, celebrity chefs • Social Media
  8. 8. Variables in sectors • Historical background • Reasons for customer demand • Size of sector • Policies: financial, marketing, catering • Interpretation of demand/catering concept • Technological development • Influences/state of sector development • Primary/secondary activity • Types of outlets • Profit orientation/cost provision • Public/private ownership
  9. 9. Types of Market General/Profit Oriented Market: • Non-captive: customers have a large choice. • Includes hotels, restaurants, pubs, fast food and leisure outlets. Restricted/Cost Oriented Market: • Captive: customers have no choice • Semi-captive: customers have a choice before entering but then have to choose from food and drink on offer. • Includes catering in business and industry, education, healthcare and the armed forces.
  10. 10. Sectors in the foodservice industry Profit orientated (public or private ownership) (foodservice as main or secondary activity) Cost provision Restricted market General market Restricted market Transport catering Hotels/restaurants Institutional catering Clubs Popular catering Schools and colleges Industrial (contract) Fast food/takeaway Universities Private welfare Retail stores Hospitals Events/conferences/exhibitions Armed forces Leisure attractions Prisons Motorway service stations Industrial (in-house) Pubs and wine bars ODC (off-premises catering)
  11. 11. Employment in the industry • Operational staff • Supervisory staff • Management staff
  12. 12. Employers’ and Employees’ rights and responsibilities Employers must: • Provide the employee with a detailed job description and a contract of employment. • Adhere to laws relating to employment of staff, including health and safety and food safety. Employees must: • Work in the way that has been agreed to in the contract. • Follow all the organisation’s policies and practices.
  13. 13. Regulation and protection Employers and people in employment are subject to a variety of legislation. This includes regulations on: • Children and Young Persons • Licensing • Rehabilitation of Offenders • Data Protection • National Minimum Wage • Working Time Regulations and Statutory Sick Pay • Gender discrimination, Race Relations, Human Rights.