In this presentation what is the hospitality industry and why service is important in the tourism sector

1. INTRODUCTION OF
HOSPITALITY INDUSTRY
AND SERVICES

2. What is Hospitality
 Hospitality is the relationship between a guest and a
host , or the act or practice of being hospitable , i.e., the
reception and entertainment of guests , Visitors , or
strangers , resorts , membership clubs , conventions ,
attractions , special events , and other services for
travelers and tourists .
 The true meaning of hospitality “ The warm and
generous reception of guests and strangers . Hospitality
word taken from French word “ HOSPICE” which mean
Take care of those travelling
 Hospitality is the act of generously providing care and
kindness to whosoever is in need

3. Definition
 According to Oxford reference Dictionary ,
hospitality is the “ Friendly and generous reception and
entertainment of ‘guests or strangers ‘ or kindness in
welcoming guests of strangers “
 King ( 1995 ) Identifies a difference between private
and commercial hospitality , where private is defined as
acts by individuals in a private setting such as the home
and commercial hospitality is defined as , meals ,
beverage , lodging and entertainment provided for profit
.

4. Hospitality Industry
 The hospitality industry consists of broad category of
fields within the service industry that includes lodging ,
restaurants , event planning , theme parks ,
transportation , cruise line , and additional fields
within the tourism industry .
 The hospitality industry is a 3.5 trillion dollar service
sector within the global economy . It is an umbrella term
for board variety of service industries including , but not
limited to , hotels , food service , casinos , and
tourism. The hospitality industry is very diverse and
global . The industry is cyclical ; dictated by the
fluctuations that occur with an economy every year .
Today , hospitality sector is one of the fastest growing
sectors in India .

7. Customers
The term customer centric has become synonymous
worldwide with proactive business strategy

8. What is Customer-Centricity?
“Customer-centricity involves aligning organizational
resources for effectively responding to the ever-
changing needs of customers, while building mutually
profitable relationships.”

9. Customer centricity fits three ways into an
organization
 As part of a knowledge management system
(understanding the customer),
 As part of the development of strategic competence as a
learning organization (building a customer-centric
culture)
 And as a foundation for corporate strategy development
and execution (serving the customer)

10. Understanding customers
Is all about learning everything you need to know about
your customers, i.e., their needs, their pinpoints, the jobs
they are trying to do, etc.
Understanding Customers is the key to giving them good
service.

11. Assessing customer needs and values
 Creating demand landscape
 Touch points

12. Touch points
Products, services, brands & interests in time and space
with customers occasions to live, play and work as
defined as matrix of goals, activities and priorities that
constitute the leading features of landscape.
E.g. :- At car rental company

13. Building customer centric culture
Market is not something which you do the customers,
Rather how customers influence your organization.

14. Incident at The TAJ Mumbai
 Incident of 2008, gained most customer value, with the
life-death service of Taj employees
 As many as 11 Taj employees, a third of the hotel’s
casualties laid down their lives while helping between
1,200 and 1,500 guests escape
 Created extreme customer centric culture.
 18 months training program (6 months more then
general training programs)

15. SERVICE MARKETING

16. What is Service?
 Service is an act or performance that one party can offer
to another that is essentially intangible and does not
result in any ownership of anything.
 Its production may or may not be tied to physical
products.(Philip Kotler)
 It is based on relationship and value.
 It may be used to market a service or product.

17. Components of Service
Physical
Product
Service
Product
Service
Environment
Service
Delivery

18. The Physical Product
The various products marketed by a firm involve the
physical transfer of ownership of those products. They
are tangible and their quality is standardized.
For Example, physical products include T.V., Radio,
Refrigerators, Computers, Hair oil, Vacuum Cleaner,
Washing Machine, etc.

19. Service Product
A service is an activity or benefit that one party can offer to
another which is essentially intangible in nature. Service
involve some interaction with customers without
effecting transfer of ownership.
For example, people visiting exhibitions, trade fairs are
allowed to inspect the consumer durables without being
approached by sales representatives. Salesmen are
trained in making proper approach to the customer
visiting their showrooms.

20. Service Environment
The potential customers form an impression about the
service on the basis of service environment. The service
environment represents the physical back drop that
surrounds the service.
For example, providing hygienic food is the core service in
a hotel or restaurant. Customers expect the restaurants
to be maintained clean, offer flexible dining hours
prompt service, soft music, décor, exotic menu etc.

21. Service Delivery
The Service delivery is one of the important components of
service. Service delivery is of great importance to the
customer’s overall perception about the quality of
service. The service provider should give due
consideration to the way service is rendered to
customers. Services are created as they are consumed

23. Characteristics of Hospitality Industry
Intangibility : The hospitality products cannot be seen ,
tested , felt , heard or smelled before they are purchased
. When the sales representative of a hotel room they do
not take hotel room with them . In fact they do not sell a
room .
Inseparability : Hospitality services , both the service
provider and the customer must be present for the
transaction to occur . The food in a restaurant may be
outstanding , but if the service person has a poor attitude
or provides inattentive service , customers will down-rate
the overall restaurant experience.

24.  Heterogeneity : Services are highly variable because
their quality depends on who and where they are
provided . In service delivery high level of human
involvement is required . This makes it vary every time
the consumer is availing the service
 Perish ability : Services cannot be stored . Vacant
rooms are perishable . The unsold room tonight can
never be sold again .
 Fixed Salary : Supply of rooms in a hotel is fixed .
Airlines adjust to demand by temporarily adding or
removing flights . This is not so with hotels .

25. High Operating Cost : Unlike manufacturing industries ,
which offset labor with large capital investments , hotels
are both capital and labor intensive .
Seasonality : It means changes in business , employment
or buying patterns which occurs predictably at given
times of the years. On a business site , Seasonality is
defined as seasonal fluctuation in economic or business
activity which occurs again and again regularly during a
year as a result of changes in climate , holidays and
vacations .

26. ThankYou