Business 6 Unit 1 The Hospitality & Tourism 8 Unit 1 The Hospitality & Tourism Business The World of Hospitality & Tourism Business 6 Unit 1 The Hospitality & Tourism 3 Unit 1 The Hospitality & Tourism Business AS YOU READ ,.. YOU WILL LEARN · To describe the hospitality and tourism industries. · To identify the segments of the hospitality and tourism industries. · To define service as a product. · To explain the importance of service to the hospitality and tourism industries. WHY IT'S IMPORTANT By identifying and understanding the nature and variety of these industries, businesses and marketers function more effectively. KEY TERMS · hospitality industry · bed-and-breakfasts (B&Bs) · tourism industry · service · variables · perishability · intangibility · changeability PREDICT What might the hospitality industry have in common with the tourism industry? hospitality industry a group of businesses composed of establishments related to lodging and food-service management The Importance of Hospitality & Tourism H ospitality and tourism are two of the fastest-growing and most exciting industries in the world today. They encompass more than 15 related businesses, including lodging, food service, transportation vendors, and tour operators. These industries employ more than 8 million people who earn more than $165 billion in wages and salaries. Annually, hospitality and tourism generate in excess of $525 billion in sales. In the United States, the tourism industry is the third-largest retail industry behind automotive and food stores, and it is our nation's largest service-export industry. One out of every seven Americans is employed either directly or indirectly because of visitors traveling to and within the United States. Opportunities are endless for well-prepared and motivated individuals who want a challenging, fast-paced future in hospitality and tourism. Industry Segments F ew industries in the world are as complex, diverse, and interrelated as hospitality and tourism with many segments—lodging, food service, travel, tourism, and sports and entertainment events. (See Figure 1.1.) Hospitality Industry Traditionally, the hospitality industry is a group of businesses composed of establishments related to lodging and food-service management. These businesses include hotels, motels, inns, and bed-and-breakfasts (B&Bs), or small unique inns that offer a full breakfast with a night's stay, as well as casinos, restaurants, catering companies, hospitals, schools, and many other facilities. Tourism industry The tourism industry is a group of businesses that encompass travel/transportation vendors for air, rail, auto, cruise, and motor-coach travel, and promote travel and vacations. Destination marketing firms, such as tourism offices, convention and visitors' bureaus, and chambers of commerce, distribute information to travelers. Other Providers In addition, providers of recreational facilities and meeting-planning services are incl ...

1. Business
6 Unit 1 The Hospitality & Tourism
8 Unit 1 The Hospitality & Tourism Business
The World of Hospitality & Tourism
Business
6
Unit 1 The Hospitality & Tourism
3 Unit 1 The Hospitality & Tourism Business
AS YOU READ ,..
YOU WILL LEARN
· To describe the hospitality and tourism industries.
· To identify the segments of the hospitality and tourism
industries.
· To define service as a product.
· To explain the importance of service to the hospitality and
tourism industries.
WHY IT'S IMPORTANT By identifying and understanding the
nature and variety of these industries, businesses and marketers
function more effectively.
KEY TERMS
· hospitality industry
· bed-and-breakfasts (B&Bs)
· tourism industry
· service
· variables

2. · perishability
· intangibility
· changeability
PREDICT
What might the hospitality industry have in common with the
tourism industry?
hospitality industry a group of businesses composed of
establishments related to lodging and food-service management
The Importance of Hospitality & Tourism
H
ospitality and tourism are two of the fastest-growing and most
exciting industries in the world today. They encompass more
than 15 related businesses, including lodging, food service,
transportation vendors, and tour operators. These industries
employ more than 8 million people who earn more than $165
billion in wages and salaries. Annually, hospitality and tourism
generate in excess of $525 billion in sales. In the United States,
the tourism industry is the third-largest retail industry behind
automotive and food stores, and it is our nation's largest
service-export industry. One out of every seven Americans is
employed either directly or indirectly because of visitors
traveling to and within the United States. Opportunities are
endless for well-prepared and motivated individuals who want a
challenging, fast-paced future in hospitality and tourism.
Industry Segments
F
ew industries in the world are as complex, diverse, and
interrelated as hospitality and tourism with many segments—
lodging, food service, travel, tourism, and sports and
entertainment events. (See Figure 1.1.)
Hospitality Industry
Traditionally, the hospitality industry is a group of businesses
composed of establishments related to lodging and food-service

3. management. These businesses include hotels, motels, inns, and
bed-and-breakfasts (B&Bs), or small unique inns that offer a
full breakfast with a night's stay, as well as casinos, restaurants,
catering companies, hospitals, schools, and many other
facilities.
Tourism industry
The tourism industry is a group of businesses that encompass
travel/transportation vendors for air, rail, auto, cruise, and
motor-coach travel, and promote travel and vacations.
Destination marketing firms, such as tourism offices,
convention and visitors' bureaus, and chambers of commerce,
distribute information to travelers.
Other Providers
In addition, providers of recreational facilities and meeting-
planning services are included under the umbrella of the
important and rapidly growing industries of hospitality and
tourism. The sports and entertainment industries rely on
consumers who spend their money and free time watching or
participating in their favorite pastimes and activities.
Product as Service
A
product is not only a tangible item, or good, it can also be a
service, or an intangible thing that is a task performed for
customers by a business. It is simple to think that hotels sell
rooms) and restaurants provide food. However, no guest will
return to a facility-hotel or restaurant—unless the service
provided with the room or the food is quality service. For
example, hotel guests will not be satisfied if the sleeping room
is pretty, but the front-desk clerk is rude. Similarly, no
customer will enjoy a dining experience if he or she has to wait
more than an hour to receive his or her food after placing an
order— even if the food is excellent.
The Service Factor
Products can be goods or services. In the hospitality and

4. tourism industries, most products are services. This service
factor in all segments— lodging, food service, travel, tourism,
and sports and entertainment events—is what differentiates
these industries from most other industries. Therefore, it is
necessary to take both a goods and a service approach to
hospitality and tourism products.
GOODS VS. SERVICES Physical products, or goods, are easy
to identify. For example, hotels have sleeping rooms, meeting
rooms, recreational facilities, and restaurants. Food-service
establishments may offer products such as food and beverages,
which are types of goods. A restaurant may also offer service in
the form of entertainment. It is easy to determine whether a
room is clean and whether food is tasty. However, it is more
difficult to determine if quality service is being provided.
bed-and-breakfasts (B&Bs) small unique inns that offer a full
breakfast with a night's stay
tourism industry a group of businesses that encompass
travel/transportation vendors for air, rail, auto, cruise, and
motor-coach travel, and promote travel, and vacations
service an intangible thing that is a task performed for
customers by a business
CONNECT
Wn at factor makes hospitality and tourism different from other
industries?
Lodging
Food Service
Travel

5. Tourism
Sports &
I
Entertainment Events
I
Hotels
QSR restaurants
Cruise lines
DMOs
Arenas
Motels
Catering companies
Rail service
CVBs
Arts centers
B&Bs
Banquet facilities
Car rentals
Tour operators
Theaters
Resorts
Fine-dining restaurants
Motor coach
Visitor centers
Parks
HOSPITALITY & TOURISM VARIETY
All of these industry segments share a common characteristic:
All rely on providing a quality service experience
to the guest.
Can any of these businesses be listed under more than one
segment? Why or why not?
Hospitality & Tourism Industry Segments

6. Chapter 1 Defining Hospitality & Tourism 7
8 Unit 1 The Hospitality & Tourism Business
QUESTION
w hat is the meaning of intangibility? How does it relate to
hospitality and tourism?
variables factors that can cause something to change or vary
perishability the probability of a product ceasing to exist or
becoming unusable within a limited amount of time
intangibility a state of being abstract, as are things that cannot
be touched
Product Variables
When marketing the service side of the hospitality and tourism
industries, you need to consider these variables, which are
factors that can cause something to change or vary:
Perishability—In hospitality and tourism, perishability is the
probability of a product ceasing to exist or becoming unusable
within a limited amount of time. For example, the owner of a
100-room hotel needs to sell as many rooms each night as
possible. Any rooms that remain vacant on a particular date
cause lost revenue that can never be recovered. On the food-
service side, if a restaurant orders 100 pounds of fish, and
customers do not order fish from the menu, the owner will lose
money. From a travel/tourism perspective, a cruise ship can
service 2,100 passengers. If the ship sails with only 1,100
guests, the lost income will never be returned.
Intangibility—In general, intangibility is a state of being
abstract, as are things that cannot be touched. Hospitality goods

7. and services relate to memories and experiences. They are
impossible for people to sample or touch prior to arrival.
Brochures, Web pages, maps, graphics, and menus may provide
a basic idea before a guest makes a purchase, but the actual
experience is intangible in nature. After the experience the
guest may have only photos, ticket stubs, and receipts to remind
him or her of the trip.
More Than an Amusement Park Walt Disney After the success
of
Disneyland® Park, Walt ' - *' Disney wanted to create
a family destination grander than the Anaheim landmark. He
bought acres and acres of land in Florida and started sketching
out plans. His dream would be more than an amusement park—it
would be an "Experimental Prototype Community of
Tomorrow," or EPC0T.
Walt Disney died before his Florida project became a reality,
but Walt Disney World Resort lives on as the materialization of
his dream. In addition to the Magic Kingdom theme park, Walt
Disney World Resort houses three other theme parks, two water
parks, hundreds of dining areas, and thousands of hotel rooms.
It's a massive complex on 47 square miles of land. Millions of
tourists visit every year.
FAMILY MATTERS
Walt Disney World Resort works hard to ensure that millions do
keep coming. Disney's marketers Look for tourism trends in
their target demographic group and then market to those
potential customers. For example, WaLt Disney World created
their Magical Gatherings Program in 2003 to tap into the
"togethering" trend. Disney executives first saw the trend
developing on their cruise ships, where extended-family and
friend groups traveled together. Today Disney provides a
Magical Gatherings Planner on its Web site. Walt Disney World
Resort is a good example of how hospitality and tourism can

8. blend.
What products does Walt Disney World Resort offer?
How has Walt Disney World Resort tried to attract new tourists?
AT YOUR SERVICE Good or bad service determines whether
customers return to any hotel or restaurant.
Would you complain if the service was unsatisfactory in a
restaurant—or would you simply not return? Explain your
answer.
5 Unit 1 The Hospitality & Tourism Business
3. Changeability—In hospitality and tourism, the service
provider and guest both play important roles in the success of
the service encounter. Thus, service transactions differ from
other types of sales transactions. They are subject to
changeability, a condition of being subject to change or
alteration. For example, if a guest checks into a hotel and is
disturbed by someone in the next room, his or her impression of
the hotel will change. Similarly, if a guest is greeted by a rude
dining-staff attendant, his or her perception of the restaurant
will not be favorable. Service training for front-line personnel
is essential to eliminate changeability in guest service.
Hospitality & Tourism Today
T
ourism was not common until the late 1800s. However, today's
tourism is truly a global industry, catering to every type of
traveler. Hospitality is also a global industry that includes a
number of important and unique segments. Throughout history,
all segments have relied on the importance of service. Future
success depends on understanding consumers' needs and
preparing for them.

9. changeability a condition of being subject to change or
alteration
A
MARKETING SERIES
Remember to check out this book's Web site for information on
hospitaLity and tourism products as well as more great
resources at marketingseries.glencoe.com.
8 Unit 1 The Hospitality & Tourism Business
Quick Check
RESPOND to what you've read by answering these questions.
1. What are the segments of the hospitality and tourism
industries?
2. What is the difference between goods and services?
3. Identify three variables of hospitality and tourism products.
marketingseries.glencoe.com
Chapter 1 Defining Hospitality & Tourism 9