The World of Hospitality

2. Chapter 1
The World of Hospitality

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Objectives
• Explain the importance of the hospitality
industry to the economy.
• Describe the diversity of the hospitality
industry.
• Differentiate among the five segments and
give an example of one business in each.
• Explain why all segments of the hospitality
industry should aim to satisfy the customer.
continued

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Objectives
• Describe the ways in which chains differ
from franchises.
• Explain the purpose of professional
organizations and career and technical
student organizations.

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The Hospitality Industry
• Hospitality includes travel and tourism, the
world’s largest industry
• In the United States, the hospitality industry
is the second-largest employer
• Money spent by travelers flows through the
economy, affecting many other businesses

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Industry Diversity
• Hospitality businesses provide diverse products
and services, including
– lodging
– food
– entertainment
– transportation
• The hospitality industry serves diverse
customers
• Hospitality employees are also diverse

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Industry Complexity
• The hospitality industry has five segments:
– food
– lodging
– travel
– tourism
– recreation
©Sean Pavone Photo/Shutterstock.com

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The Foodservice Industry
• The foodservice industry
– consists of businesses that prepare food and
beverages for customers
– includes businesses of many sizes, types, and
locations
– is the largest and most varied segment of the
hospitality industry

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The Lodging Industry
• The lodging industry consists of businesses
that provide overnight accommodations
• Lodging includes a wide range of prices and
levels of service

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The Travel Industry
• The travel industry consists of businesses
that physically move travelers from one place
to another, such as
– car rentals
– taxi and ferry services
– train and bus services
– airlines

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The Tourism Industry
• The tourism industry consists of businesses
that organize and promote travel, such as
– travel agencies
– tour operators
– cruise companies
– meeting and convention planners
– convention and visitors bureaus
– travel and tourism offices
– travel planners, who create travel packages

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The Recreation Industry
• Recreation is any activity done for rest,
relaxation, and enjoyment
• The recreation industry includes such
operations as
– entertainment
– spectator and participatory sports
– attractions

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A Customer Focus
• All segments of the industry must meet
customer needs
• All hospitality workers contribute to a
customer’s overall experience

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Business Categories
• A single-unit business
– has only one establishment (location)
– is also called an independent business
– is not connected to any other business
• A multi-unit business
– has two or more establishments
– may be part of a chain or franchise

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Chains
• A chain is a business that has more than one
establishment under the same name and the
same ownership
• A chain’s brand, which distinguishes it from
its competitors, may include
– name
– logo
– tagline

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Franchises
• A franchise is the right to set up a business
using the brand and products of another
business
• The franchisor owns the chain and brand,
while the franchisee buys the right to use the
brand
• All franchises are part of a chain, but not all
chains have franchises

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© Goodheart-Willcox Co., Inc.
Professional Associations
• A professional association consists of a
group of people organized to improve
themselves, their profession, and their
industry
• Includes such major associations as
– the National Restaurant Association (NRA)
– the American Hotel & Lodging Association
(AH&LA)
– the U.S. Travel Association

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Activities of Professional
Associations
• Professional development
• Standards and ethics
• Networking
• Public relations
• Government relations

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Value of Involvement
• Involvement in a professional organization
can provide benefits such as
– scholarships for students planning to enter the
profession
– help with job searches, professional
development, and networking
– opportunities to develop leadership skills and
other abilities

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Student Organizations
• A career and technical student organization
(CTSO) is for students interested in a career
area, such as hospitality or business
• A CTSO gives students the opportunity to
develop
– interpersonal skills
– leadership skills
– career skills
– technical skills

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Benefits of Belonging to a CTSO
• Opportunities to meet with professionals in
the industry
• Availability of scholarships
• A variety of civic, service, social, and fund-
raising activities
• Competitive events at the local, state, and
national levels

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• What is the world’s largest industry?
– travel and tourism
• In what three ways is the hospitality industry
diverse?
– It provides diverse products and services,
serves diverse customers, and employs diverse
workers.
Chapter 1 Review
continued

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© Goodheart-Willcox Co., Inc.
• Name the five segments of the hospitality
industry.
– food, lodging, travel, tourism, recreation
• Which segment is the largest and most
varied?
– the food industry
Chapter 1 Review
continued

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© Goodheart-Willcox Co., Inc.
• What distinguishes a chain from its
competitors?
– its brand
• Name four types of skills that can be
developed by belonging to a CTSO.
– interpersonal, leadership, career, and technical
Chapter 1 Review