Chapter 1 Develop and update hospitality industry knowledge
Summary
This chapter is concerned with developing skills that underpin a learner’s ability to become a hospitality professional.
It begins by laying the foundations for developing research skills, questioning techniques and sourcing hospitality information. The chapter then discusses information needed to assist effective work performance such as understanding the structure, scope, and services and sectors of the industry.
The hospitality industry is comprised of a number of sectors providing a range of services and facilities. Sectors include restaurants, cafes, clubs, caravan parks, hotels, motels, hostels, convention centres, roadhouses and cruise ships, among others. Information about these various sectors can be sourced from textbooks, the Internet, personal experience, colleagues and associates, industry associations and tourist offices.
Each sector offers various products and services and may be classified as commercial (profit making) or non-commercial (not for profit, such as institutional catering). Each sector additionally offers career opportunities and pathways.
There are both internal and external factors that can impact an enterprise. Internal factors include service standards, pricing structure and products and services offered. External factors include trends, competition, seasonality and legislation.
The hospitality industry is closely aligned to the tourism industry. Tourism refers to those activities that take people away from their usual place of residence for pleasure or a holiday, other than for work. The three tourism sectors are hospitality, travel operations and visitor services.
The tourism industry features significantly in this chapter because of the relationship between hospitality and tourism. Specifically, the chapter discusses the economic impact of tourism, infrastructure development and recent impacts on tourism.
The hospitality industry maintains relations with other industries also, for its survival. As an industry, it is only sustainable through the existing mechanisms that support a community as a whole. In other words, the hospitality industry relies on local transport service, a labour market, events, retail and wholesale businesses, public sector services etc.
Socially and culturally, tourism and hospitality can positively (and negatively) impact quality of life of those people living and working in tourist destinations. Responsible tourism development is discussed to reinforce its importance to ensure sustainable tourism practices, particularly in relation to environmental issues, appropriate waste management and energy efficient operations. An appropriate level of understanding of these issues affords an excellent opportunity for better cultural relations and better management of the environment.
Career opportunities are briefly discussed in the chapter but more in-depth knowledge is in Chapter 11, Career Paths and Job Seeking Skills. There are various roles and functions available in the hospitality industry including food and beverage attendant, room attendant, receptionist, chef, concierge and bar attendant, among others. In larger organisations, such as hotels, departments identify the services/products available. Departments and roles can be graphically represented on an organisational chart.
There are a number of desirable attributes all hospitality professionals should demonstrate including excellent grooming, interpersonal skills and attitude.
There are a number of organisations that support the hospitality industry, employers and employees, such as industry bodies, employer organisations and trade unions. There is a brief discussion on working conditions in the hospitality industry.
Quality assurance, an internal factor, but frequently informed by external factors, is the control of the variations in the provision of goods and services that ensures consistency. There are various quality assurance programs that hospitality enterprises can implement. The quality (and number and type) of the products and services an enterprise offers has a bearing on the star-rating it can be awarded. In Australia, AAAtourism awards star ratings.
Current and emerging technology has a significant impact on our industry. Applications available to the industry are rapidly changing and new entrants to the industry need to more technologically savvy than ever before.
All people working in the hospitality industry have legal and moral obligations to employers, employees and customers. Multiple pieces of legislation impact the hospitality industry including liquor and gaming licensing, consumer protection, public health regulations, occupational health and safety, industrial relations, equal opportunity and privacy laws.
At the time of going to print (October 2007), a Federal Election had been called. The impact of this is not only a (potential) change of government, but potential change of legislation in some areas that are likely to impact hospitality (and other) workers. Specifically, industrial relations law. In addition, states and territories may change legislation that may impact the hospitality industry through out the life of the book. It is important that learners use their research skills to remain up-to-date about these changes in their state or territory.
Ethical industry practices are considered and are generally an interesting topic of discussion! Various practices are discussed and ethics defined.
Monitoring hospitality and tourism data enables appropriate and timely responses to emerging markets, government initiatives, environmental and social issues, trends, labour issues, and market retraction or expansion.
Check please (Pg 11)
1. Distinguish between formal and informal research, and qualitative and quantitative research.
Research is a set of techniques we can use to locate information relevant to our needs and to process that information so that we can use the relevant data to assist us to build our knowledge. (Pg 2)
Formal research involves systematically gathering and analysing information from primary and secondary sources relating to a product or service or even the industry in general. Primary source information is information collected through interviewing (one-on-one or group sessions) or questionnaires (for example, from the guest) or even chatting to colleagues. Secondary source information is information gathered from already published data. (Pg 3)
Informal research involves the collection of information from sources that have already formally researched the products and services (secondary sources). This could include reading newspaper articles, menus and wine lists used in the venue, or reading a brochure on other accommodation venues in the chain of venues. (Pg 3)
Qualitative research is looking for general information, explores ideas and seeks feedback. For example, ‘What did you enjoy most about your stay?’, 'How could we improve our service?’ What additional products would you like us to offer?’ (Pg 4)
Quantitative research measures or monitors events or performance in terms of numbers and percentages over time. For example, many hospitality enterprises measure their success on satisfaction surveys: ‘How satisfied were you with the service we provided?’ 1. Very satisfied, 2. Satisfied, 3. Not very satisfied. These types of questions can help us determine the quantity of satisfied customers, usually expressed as a percentage (65% very satisfied, 30% satisfied, 5% not satisfied). Qualitative research can help us identify what it was that was not satisfying. (Pg 4)
2. Distinguish between open-ended and closed questioning techniques.
Open-ended questions are questions that usually make it difficult to respond in a simple yes or no. These types of questions start with why, which, how, what and who. (Pg 4)
Closed questions are those questions that generally make it easy to respond ‘yes’ or ‘no’. For example, ‘Would you help me with this?’ ‘Would you like a drink before dinner? ‘Would you like to order now?’ ‘Do you have a preferred date?’ ‘Is there anything else I can do for you?’ (Pg 4)
3. Why is it important to understand the host-guest relationship?
Students may offer various answers to this question. The key however, is understanding that hospitality is underpinned by the host-guest relationship. Thus ‘at its core, hospitality can be said to be the result of the relationship between a host (giver) and a guest (receiver). A host may be a single person or several people; it may be an organisation or business such as a hotel, a restaurant, a country or even a region. Similarly, the guest may be a single person or many people. The person or people may represent themselves, a business, a department, a city, a venue. The host is the one offering hospitality; the guest is the one receiving hospitality. In a hospitality context, what is being offered is food, beverages, accommodation or some combination of the three. Without the host and the guest, and the offering and receiving, hospitality cannot be said to exist.’ (Pg 6)
4. What is a hospitality sector?
The hospitality industry is comprised of a variety of sectors providing a range of services and facilities and a range of jobs in various departments. A sector is one area of an industry, often a specialist area that can be said to be a division in its own right. (Pg 7)
The hospitality industry (and many other industries) is divided into sectors to facilitate operations and more clearly distinguish between commercial and non-commercial operations.
5. Distinguish between commercial and non-commercial operations.
Commercial venues are in business to make a profit. Non-commercial enterprises do not generally operate to make a profit and may include services such as institutional catering in hospitals and schools. (Pg 7)
6. What is a product? What is a service?
Products are the tangible aspects of hospitality; things the guests can touch or consume. Service or services refers to an action, an activity or an experience. A service is a task performed by employees that contributes to the guest’s comfort and enjoyment of the hospitality experience. It is something we do for the guest. Unlike goods or products, a characteristic of service is its intangibility: we cannot physically touch or hold a service, and it is not something that can be stored for future use. (Pg 7)
7. What is the difference between internal and external factors that can influence a hospitality operation?
Factors that can influence an operation are either internal or external. Internal factors, such as pricing policies and marketing strategies, allow for some control by the enterprise whereas external factors, for example government regulations and seasonal influences, are beyond the control of the enterprise. How organisations respond to the factors that impact on them can determine their level of success. (Pg 9)
Check please (Pg 23)
8. How does tourism contribute to the economic development of Australia?
Tourism contributes significantly to Australia’s economic wellbeing and development. The tourism industry employs more than half a million people, either directly or indirectly, and generates in excess of $73 billion per year in revenue ($55 billion in domestic tourism consumption and $18 billion in international tourism consumption), of which domestic tourism accounts for 75%.
Tourism is a major factor in federal and state and territory government economic strategies due to its positive impact on the economy. Tourism will continue to expand (and of course, occasionally contract!), creating wealth and job opportunities, particularly in regional Australia.
The Tourism White Paper (2003 argued that the continued significance of tourism and the changing dynamics of the industry make it vitally important to initiate, develop, implement and maintain strategies for maximising the industry's potential and for responding to the changing landscape of the industry.
In addition, each state and territory can and does benefit from the promotion of their many attractions, tours and events that encourage visitors, irrespective of visitor origin, to generate a flow of spending in the community. (Pg 13)
9. Distinguish between exports and imports
Overseas visitors bring ‘new’ money into the economy when they exchange their foreign currency for Australian dollars and spend it at the destinations they visit. Hence, tourism is regarded as a service-based export, earning foreign currency that can, in turn, be used to invest or purchase imports.
Exports are good and services sold by a business within a country to other countries to earn foreign currency. Imports and goods and services purchased by businesses within a country from other countries.
10. Distinguish between inbound, outbound and domestic tourism.
Inbound tourists are those visitors to Australia whose main place of residence is not in Australia (Pg 12).
Outbound tourists are those tourists whose main place of residence is in Australia, travelling outside Australia. (Pg 12)
Domestic tourists are Australian tourists travelling within Australia (interstate and intrastate). (Pg 12)
11. What is meant by the purpose of travel?
The purpose of travel refers to the visitor’s reason or main motivation for travel. (Pg 13)
12. How does infrastructure affect a destination?
To make any tourist destination functional, attractive and appealing for the visitor, the infrastructure of roads, bridges, airports, transport systems, telecommunications, water systems, waste disposal and so on needs to be developed and/or upgraded to a certain standard. This requires a massive investment in financial and human terms. Often tourism can act as a catalyst for this and can be of enormous benefit to local communities and residents as well as their visitors. (Pg 18)
13. How does an increase in the Australian dollar affect outbound tourism?
(At the time of writing, the Australian dollar was buying $US.94c; at 30 year high)
An increase in the value of the Australian dollar is likely to reduce domestic travel as outbound travel becomes increasingly more attractive (overseas travel becomes very attractive when dollar is high). Conversely, inbound travel is likely to decrease because, with a strong Australian dollar, Australia is a less affordable (therefore less attractive) destination for inbound tourists.
14. What are the major impacts affecting the tourism industry today?
The responses to this question should essentially be the same, but the examples (if any) given are likely to vary depending on what’s going on globally.
· Long haul destination
· Rising Australian dollar
· Threats of and actual terrorism
· War and political instability in many regions
· Natural disasters
· SARS
· Bird flu
· New entrants in the industry
· Corporate collapse
(Pg 18)
15. With what other industries are hospitality linked?
· local transport services
· a labour market
· events, entertainment and recreation facilities
· attractions (natural and man-made)
· retail shopping outlets
· banks and public sector services such as a post office
· chemists, doctors and so on.
(Pg 21)
16. How does the multiplier effect work?
The link between hospitality, tourism and many other industries means there is a strong reliance on each other for survival. Each of the services and industries has a direct and indirect impact on each other in monetary terms. All visitors and each of these industries generate a flow of spending through the community as a result of tourism activities. This flow of spending is called a multiplier effect and works in stages as the money is passed from one business to the next and on to the next as each supplies a different service or product to meet the initial demand from the tourist. (Pg 21)