Chapter 1
Meeting the needs of guests
with kindness and goodwill
Derived from the Latin word hospes,
which means host or guest
Hospitality is a
“people serving people business”
A. Growth – will grow by 3.9% through 2012
B. Employment – 18 million people in US
2nd largest employer – 1st medical field
C. Money – generates more than $2 trillion per year
1. Transportation
2. Food
3. Lodging
4. Entertainment
5. Gifts (self and others)
a. $70 billion comes from international travelers
b. Taxes - $100 billion in revenue
c. impacts economies in other countries as well
A. Businesses
1. food
2. lodging
3. entertainment
4. transportation
B. Visitors
Every age, race, religion and culture
C. Employees
1. high school – part-time retired
2. different countries
3. Varied education levels
4. many more
Hospitality industry consists of four segments:
A. Food and Beverage
1. provide 50 % of all meals eaten in the U.S. today
a. casual (hot dog vendor)
b. to fancy (Ritz Carlton Restaurant)
2. largest of the hospitality industry
a. employs 11 million people
B. Lodging
1. from budget to resort hotels, to bed and
breakfast
C. Recreation
(any activity that people do for rest, relaxation, and enjoyment)
1. Four types
A. Entertainment
1. movies, concerts
B. Attractions
1. Natural history museums, zoos, historical sites
C. Spectator sports
1. football
D. Participatory sports
1. golf, skiing
D. Travel and Tourism-
two parts
A. Travel – physically moving people from one place to
another
B. Tourism – places that organize and promote travel
A. Pleasure travel or leisure travel
(done for rest and relaxation)
1. Use of discretionary income (after necessities)
2. Shorter than in the past
a. more weekend trips
b. 3.7 night average
3. Where do they go?
Historical sites, natural wonders,
pursue hobbies, visit
relatives, romantic getaways
B. Business Travel (as part of their jobs)
1. The “meat and potatoes’ of the hospitality industry. Why?
a. spend more
b. bad times don’t affect business as much
2. Business people take approx 208 million trips per year


All segments must work together to successfully
meet all customer needs
If one fails all the other may fail
 Make a good impression
 What happens when a customer is
dissatisfied with one segment of
their trip?
A. Single Unit –independent,
in one location in one unit ex: ?
B. Multiple Unit –
1. Chain – more than one
location under the same name
ex: Olive Garden, McDonalds
a. most important aspect is the NAME
2. Franchise – the right do business using the
name and product of another company
A. Activities
1. Professional Development
2. Standards and Ethics
3. Networking
4. Public Relations – providing info to general public
5. Government relations – informing local, state and national governments
about issues that are important
B. Values of Involvement
1. Stay informed
2. Grow in abilities and leadership
3. Employment
C. Career and Technical Student Organizations
1. FCCLA (Family Career and Community Leaders of America)
2. DECA
3. Skills USA -VICA
The hospitality industry is dependent on giving the
public what they want.
List popular trends and fads of today.
Take two trends and/or fads and explain how the
hospitality industry could incorporate them into their
businesses.
As a group select an example of a hospitality business
and share how your trends and/or fads to the class
how they will influence this business.
Your idea should explain how their (your) business has
incorporated them and how incorporating these
trends and/or fads will benefit their (your)business.
Read Article , “In-N-Out has beef with Boise’s Burger Express”.…discuss