Chapter 1 The Hospitality Industry
Terms to Know
hospitalitytravel packagebrand
hospitality industryrecreationfranchise
foodservice industryrecreation industryfranchisor
lodgingsingle-unit businessfranchisee
accommodationindependent businessprofessional association
lodging industrymulti-unit businesschain
travel industrytourism industry
The word hospitality comes from the Latin word ___Hospes_____, which means _Host or guest___. Hospitality has come to mean __meeting the needs of the guests with kindness and goodwill. ____
The hospitality industry provides services to peoples away from home. These services include: _food, lodging, travel, tourism and recreation __
Hospitality is a __people serving people business_. _Customer Service_ is at the heart of the hospitality business. The goal of the hospitality industry is to make sure that guests feel _safe and happy __ as a result of using their business.
Industry Size and Economic Impact
According to the World Travel and Tourism Council travel and tourism is the world’s largest industry and one of the most important. In the United States the industry employs more than __14 million__ people, or 1 of every ___8 ____.
Some of the jobs in the hospitality industry are:
Tour OperatorsHotel & Motel ManagersMeeting & Event Planners
Restaurant ManagersConvention/Visitor Bureau WorkersCatering Employees
The hospitality industry is important to the U.S. economy because it generates more than _One Trillion dollars each year______. Whenever people travel they spend money on____transportation, food, lodging, entertainment, and gifts______.
International visitors to the U.S.A. insert over $100 billion directly into the U.S. economy.
Diversity
The industry is filled with diversity. Businesses within the Hospitality Industry vary by _ size, what they provide, and level of service____ to mention some of the differences.
The employees of the hospitality businesses are also diverse as well as the guests the industry serves. Hospitality workers also vary in age from a high-school student to a retired employee working part-time.
Complexity
The industry is complex, consisting of five major segments: _food, lodging, travel, tourism, and recreation ______. Part of the complexity is the comingling of segments, such as a hotel that houses a restaurant, theater and gift shop. ALL segments of the hospitality industry must work together to ____meet the needs of the customer with quality service______.
Food & Beverage segment consists of businesses that prepare food for customers. It is also known as the ___food service industry______. Many food and beverage businesses are located in other businesses, ex. movie theaters, airports, malls. These businesses vary from large to small, casual to fancy/formal.
Lodging segment _ Accommodation is another word used to mean a place to sleep___:provide a place to sleep or stay overnight or longer. These businesses vary by level of service: budget (casual) to expensive resort, price, location and type. Bed and Breakfasts are located in private homes and are a part of the Lodging segment; campgrounds and hostels areas well.
Travel segment is the industry that _physically moves travelers from one place to another______. Travel can be for___ business or pleasure/leisure______. Business travel is responsible for 23% of all travel in the US. Modes of transportation include: automobiles, buses, trains, ships and airplanes. Businesses in this segment include: car rentals, taxi services, ferry services, bus services, train services, cruise lines, airlines.
Tourism segment consists of businesses that __organize and promote travel for business, leisure and other purposes ______. Businesses in the tourism industry include: travel agencies, tour operators, cruise companies, meeting & convention planners, and convention and visitors bureaus. A vacation might involve several different hospitality businesses. A Travel Package is a trip that includes ____arrangements for several sections of the hospitality industry such as transportation, lodging, meals and entertainment______. One fee is charged for the package that covers all of the arrangements. ____Travel agents___ work for Tour Companies to sell packages to consumers.
Recreationsegment includes businesses that provide activities for people to __rest, relax and enjoy_____. The goal of recreation is to refresh a person’s body and mind. Types of recreation businesses are:
___Entertainment businesses____– provide shows for you to watch; movies, live theater, concerts
___Attractions______– places of special interest to visit; festivals, state fairs, museums, zoos
___Spectator sports______– sports that you watch others play; MLB, NBA, NFL, MLS
___Participatory sports______– sports that you take part in; golf, tennis
The Role of Travel
Pleasure travel is done for rest and relaxation. A vacation is a period of time during which a person rests and is free from daily obligations, such as work and/or school.
Business travel is done as a part of a job or occupation and is often necessary for business success. The employer decides __who travels, when and where they travel and how much money to a lot per traveler_. Most companies budget a certain amount of money for business travel every year.
Business Structure
The U.S. Census Bureau defines and maintains statistics on U.S. businesses. It identifies single-unit and multi-unit as the two categories for classifying all existing businesses.
__Single unit___are a business with only one location and one unit. It is not part of any other business. The owner of an independent business is responsible for all the business decisions.
__Multiple unit____consist of more than one unit or more than one location under the same name and the same ownership.
A chain is a business that has more than one location under the same name and the same ownership. Example: __ all Olive Garden restaurants_are all owned by Darden Restaurants, Inc.
The name of the chain becomes its __Brand__. A brand is a name, logo, tagline or any combination of these that distinguish a product from its competitors.Example: McDonalds is the __chain restaurant; _The logo___-Golden Arches, _The tagline__-I’m lovin’ it!”
A franchise is a part of a chain. A franchise is the right to do business using the brand and products of another business. The legal document that sets up a franchise is called a __franchise agreement___. The franchise agreement includes the rules and standards that the outside person must follow in running the franchise. The _franchise_ _fee___ is the amount of money paid to the chain owner for the ability to operate a franchise. The person who owns the chain and brand is the __franchisor___and the person who buys the right to use the brand is the _ franchisee__. Example: Subway restaurant, Holiday Inn and Hilton hotels.
Professional Associations
Professional associations are groups of individuals organized to improve __themselves, their profession and the industry __. The groups also work to be represented at a government level. The hospitality industry has over __50 professional associations______. Example: NRA-National Restaurant Association, AH&LA – American Hotel & Lodging Association.
Many associations provide ___C.T.S.O.s or Career & Technical student organizationsfor students___ planning to enter the industry. Employers look for employees to be up-to-date on industry standards and new developments; they often hire someone with active membership in professional associations. __Professional competencies____ are learned and developed through involvement in professional associations.
Professional associations work in five areas: professional development, standards and ethics, networking, public relations, and government relations.
___Professional development___ – continuing education via workshops, web-based seminars, annual meetings, journals, newsletters, books and other publications
___a code of ethics______– standards for the practice of the profession, ex. food safety and sanitation standards were developed by the NRA. A Code of Ethics is __a statement of proper, professional behavior __for members of the profession.
____Networking______- is the process of meeting people in your profession, someone with similar interests, etc. Networking helps someone to problem solve, and to learn about new career opportunities.
____Public relations____–is the process of providing general information about the industry to the general public to both attract new professionals and to build a positive image of the profession and industry.
____Government relations______– involves informing all three levels of government, local, state and national, about the issues that are important to the profession. This can and will affect public policy and legislation.