Week (1) part one Introduction to Hospitality/Front Office Welcome to the Hospitality Industry Week (1) Introduction to Hospitality/Front Office After Reading and Studying This Chapter, You Should Be Able to: Describe the characteristics of the hospitality industry Discuss why service has become such an important facet of the hospitality industry Suggest ways to improve service Profitability of the hotel Introduction to Hospitality/Front Office Basic Characteristics of hospitality industry The hospitality industry is part of the travel and tourism industry. One goal in common: to provide necessary or desired products and services to travellers. The hospitality industry consists of Accommodation and food and beverage services. Introduction to Hospitality/Front Office continued. Travel and tourism is one of the largest industries in the world. The hospitality industry is a fascinating and ever-changing field. Many concepts and innovations developed by the hospitality industry have found their way to others fields such as management, customer services, accounting, leadership skills and food and beverage operations. Introduction to Hospitality/Front Office Travel and Tourism Industry Accommodation Transportation F&B Operation Introduction to Hospitality/Front Office Retail Stores Activities Accommodation as Part of the Travel and Tourism/Hospitality Industry Travel and Tourism Industry: All businesses that cater to the needs of the traveling public. Hospitality Industry: Refers primarily to businesses that provide accommodations and foodservices for people when they are away from their homes. Introduction to Hospitality/Front Office Accommodation is Part of the Travel and Tourism/Hospitality Industry Hospitality Industry includes: – – – Accommodations Food and beverage services Other hospitality operations Introduction to Hospitality/Front Office The Pineapple Tradition Symbol of welcome, friendship and hospitality Recognized internationally Foundation for concept of “SERVICE” Introduction to Hospitality/Front Office Scope of Hospitality and Tourism Industry Travel Meetings, Conventions and Air Cruise Rail Coach Auto Ecotourism Lodging Hotels Motels Expositions Restaurants Managed services Recreation Gaming Attractions Parks Recreation Introduction to Hospitality/Front Office Cruise attendants Introduction to Hospitality/Front Office Airlines crews Introduction to Hospitality/Front Office Rail Attendants Introduction to Hospitality/Front Office Events and conventions Introduction to Hospitality/Front Office Scope of the Hospitality-Tourism Industry Introduction to Hospitality/Front Office Characteristics of the Hospitality Industry Product is intangible and perishable No such thing as business hours Hospitality operations run on a 24 hour basis all year round Characterized by shift work Introduction to Hospitality/Front Office Hospitality and Tourism Largest and fastest growing industries Common dynamics Delivery of services and products Customer and guest impressions are critical Fascinating and ever-changing field Can be very rewarding ( have found their way to other fields) Introduction to Hospitality/Front Office “Seven Deadly Sins of Service” 1. 2. 3. 4. 5. 6. 7. Apathy (absence of passion) Brush-off (To ignore or behave coldly toward; Coldness Condescension (lack of respect) Robotics Rule book Runaround (form of evasive excuses ) Introduction to Hospitality/Front Office For Success in Service We Need to: Focus on the guest Understand the role of the guest-contact employee Weave a service culture into education and training systems Thrive on change Introduction to Hospitality/Front Office Week (1) Introduction to Hospitality/Front Office Competencies for The Hospitality Industry On completion of this unit the student will able to: 1. Classify hotels in terms of the major target markets attracted to the features and benefits they offer. 2. Classify hotels in terms of the level of service they provide for guests. 3. Identify the advantages and disadvantages of different types of hotel ownership and affiliation. Introduction to Hospitality/Front Office Competencies for The Lodging Industry 4. Identify factors that affect travelers’ buying decisions and describe what hotels can do to reward loyal guests. 5. Describe characteristics of the business, leisure, and group travel markets. Introduction to Hospitality/Front Office Type of accommodation It is very important to be aware of all the different types of establishments offering accommodation within the Hospitality Industry. Rating of the Hotel: ( Rating from AAA Tourism) Australian Automobile Association (NRMA) and Australian Hotel Association. 5 star : Establishment of international standard offering 24 hour in room dining, florist, gift shop, swimming pool, gym and day spa, turndown service and fully licensed with public bar and bottles shop. Introduction to Hospitality/Front Office AAA Tourism AAA Tourism was set up in 1999 as the national tourism body of Australia's Auto Clubs (NRMA, RACV, RACQ, RAA, RAC, RACT, AANT). In 2009, AAA Tourism formed the Club Tourism Publishing partnership with the New Zealand equivalent, AA Travel, to share ideas and technologies and to target each country's largest source of international visitors. The partnership now combines Australia's 6.5 million Auto Club members with New Zealand's 1.2, totalling 7.7 million. On behalf of the Auto Clubs, AAA Tourism: Cont. Manages the Australian STAR Rating Scheme, certifying STAR Ratings to approximately 10,000 properties across Australia and Fiji Publishes a suite of 11 guides including the national Accommodation Guide, national Tourist Park Guide, seven individual State guides, Boutique Accommodation Guide and a NZ distributed guide Provides comprehensive online accommodation and travel information via the AAA Tourism and Auto Club websites The STARS are registered Certification Trade Marks of AAA Tourism Pty Ltd. STAR Ratings Australia, the division of AAA Tourism managing the Australian STAR Rating Scheme, is a Registered ISO 9001:2000 Quality Management System. cont. 4 star : Exceptionally well appointed establishment with restaurant and room service from0700-2300- porter available. 3 star : limited service, offer basic needs for the guests. Introduction to Hospitality/Front Office Types of Accommodation Venue Accommodation Hotel Motels Resorts Time Share Hotels Condominiums Conference Centres Caravan Parks Convention hotels Introduction to Hospitality/Front Office Identify guests and target markets • Hotel or Inn: An establishment whose primary business is providing lodging facilities for the general public and fully licensed with public Bar and bottle shops for general public as well. • Motel: It is a lodging facility that caters primarily to guests arriving by automobile. • Target Markets: Groups of people that the hotel hopes to retain or attract as guests who have been identified as potential customers. • Market Segmentation: to define or identify smaller, distinct groups or “segments” within larger target markets who share similar traits, needs and wants Introduction to Hospitality/Front Office Cont. Guest: are the customers of the hospitality industry. The are the people who pay for the services and facilities provided by hospitality establishments. Inbound visitor: A visitor travelling to Australia whose main place of residence is outside Australia. Four General ways of classifying hotel Hotels are classified by : 1. Hotel size 2. Target markets 3. Levels of Service 4. Ownership and affiliation. Introduction to Hospitality/Front Office Types of Hotels · Commercial hotels/corporate hotels · Airport hotels · Suite hotels · Extended stay hotels · Residential hotels · Resort hotels Introduction to Hospitality/Front Office Types of Hotels (continued) · Bed and breakfast hotels · Vacation ownership and condominium hotels · Casino hotels · Convention hotels · Alternative lodging properties Introduction to Hospitality/Front Office Hotels Commercial /corporate Hotels Located in downtown or business districts- area that are convenient and of interest to their target markets. Guest amenities at commercial hotels may include complimentary newspapers, cable television, swimming pool, health club, high speed internet access. Introduction to Hospitality/Front Office Airport hotels Located near the airportsespecially international airports. Target Market: airline passengers, cancelled flight, airline personnel. Hotel-owned courtesy vans transport guests between the hotel and the airport. Corporate hotel Introduction to Hospitality/Front Office Corporate hotel Introduction to Hospitality/Front Office Airport Hotel Introduction to Hospitality/Front Office Hotels ( continued) Suite Hotels Suite hotels are among the newest and fastest-growing segments of the lodging industry. These suite hotels feature guestrooms with a living room and separate bedroom. Some guest suites includes a compact kitchenette with fridge and mini bar. Target Market: Professionals such lawyers, accountants Resorts Hotels Resort hotels are located in the mountains, on an island or exotic location away from crowded residential areas. More leisurely, relaxed atmosphere Resort hotels provide Introduction to Hospitality/Front Office special activities such as golf, sailing, skiing. Resort Hotel Introduction to Hospitality/Front Office Hotels ( continued) Vacation ownership hotel/time share hotel Individuals who purchase the ownership of accommodation for a specific period of timeusually one or two weeks a year. These owners then occupy the unit. These hotels are becoming popular in resort areas. Casino Hotels Hotel with gambling facilities. Casino hotels attract guests by promoting gaming and provide a broad range of entertainment activities. Some casino hotels are very large, housing as many as 4,000 guestrooms Introduction to Hospitality/Front Office Casino Hotel Introduction to Hospitality/Front Office Serviced Apartments Introduction to Hospitality/Front Office Extended Stay Hotel Introduction to Hospitality/Front Office Extended Stay Hotels gives you the choice of budget studios for business travel, relocation, temporary housing or vacations as well as suites for daily and weekly rentals. Free yourself from the confines of your average hotel room. Every suite has a kitchen so you can cook and eat on your own schedule. Spend more time relaxing and less money on your next trip for business or leisure. When should you consider long-term studio suite accommodations? Working on an extended project away from home Going away on a budget vacation and still prefer to have a kitchen and access to laundry Remodelling or buying a home Relocating to a new job Visiting relatives Introduction to Hospitality/Front Office Levels of Service • • • • There are three levels of service: World-Class Service Mid-Range service Economy/limited Service Introduction to Hospitality/Front Office World-class Service World-class service –sometimes called luxury service. Attract top business executives, entertainment celebrities, high-ranking political figures and wealthy clientele. Oversized guestrooms, supply heated towels and floor and selection of refreshment centers, and more expensive furnishings, décor and artworks in the guest-rooms. Housekeeping provide twice daily service a day (turn down service and daily cleaning service) Introduction to Hospitality/Front Office World-class service (continued) World-class hotels stress personalised guest services and maintain high ratio of staff members to guests. In some world-class hotels certain floors are designated as executive floor and offer luxury services. Executive floors contain private lounge, and offered special complimentary food and beverage services. Introduction to Hospitality/Front Office Mid-Range Service Mid-range service hotels attract the largest segment of the travelling public. The service is modest and sufficient. The guests who stay in the mid-range service hotels are business people, individual travellers and families. Introduction to Hospitality/Front Office Economy/limited service These properties provides clean, comfortable and inexpensive rooms and meet the basic needs of guests. Economy service hotels attract budget-minded travellers, tour groups, families with children and group of conventioneers. Introduction to Hospitality/Front Office Ownership and Affiliation Categories · Independent Hotels · Chain Hotels · Management Contract Franchise Referral Group Introduction to Hospitality/Front Office Independent Hotels Independent hotels have no relationship to other hotels regarding policies, procedures, marketing or financial obligations. For example An Independent property is a family owned and operated hotel that is not required to conform to any corporate policy or procedure. Its unique advantage is autonomy and flexibility. Independent hotel can quickly adapt to changing market conditioning. Disadvantages are: unable volume purchasing, and broad advertising Introduction to Hospitality/Front Office Chain hotels Chain ownership imposes certain standards, rules, policies and procedures. Some chains have strong control over the architecture, management and standards. Advantage: Advertising, purchasing and marketing. A chain is classified as operating under a management contract or franchise or referral group. Introduction to Hospitality/Front Office Management contracts Management companies are organisation that operate properties owned by other. In other word, management company is hired to run a hotel. Management contracting a a means of expanding a hotel company’s operations with far less investment. Advantage: Expertise in operations, financial management, staffing, marketing and reservation services. Introduction to Hospitality/Front Office Franchise and referral groups Franchising is selling the right to conduct a business. Franchisor offers the quality of product and develop standards for design, décor, equipment and operating procedures. Some of the best known U.S hotels belong to franchise and referral groups. For example, Four points hotels by Sheraton are franchises. Advantage: Volume purchase, amenities, linen and towels. Etc. Introduction to Hospitality/Front Office Referral group A group of independent hotels that have banded together for their common good. Hotels within the group refer their departing guests or those guests they cannot accommodate to other properties in the referral group. Introduction to Hospitality/Front Office Categories of Guests · Business · Pleasure · Group Business Travelers: Those who travel primarily for business reasons. Leisure Travelers: Those who travel primarily for personal reasons; these guests use private funds for travel expenses and are often sensitive to the prices charged. Introduction to Hospitality/Front Office Business Travel The business travel market is important to many lodging properties. Business travellers were first and primary markets for hotels dating back to many years. Regular business travel is an important source of business for many lodging properties. Introduction to Hospitality/Front Office Pleasure/leisure Travel Pleasure travel is also very important. Pleasure travellers are the most difficult to understand. Business travellers consider the cost of travel is a necessary expense but pleasure travellers are price-sensitive. Introduction to Hospitality/Front Office Group travel Two kinds of group: An organised tours, travel for pleasure Business related group to attend meeting or conventions Introduction to Hospitality/Front Office Hotel Revenue Sources Guest Rooms Meeting/Function Space Outlets/Food and Beverage outlets Why is this relationship so important? Introduction to Hospitality/Front Office What influences repeat business? Many guests say that the most important factors that bring them back to a hotel are: 1. the quality of services 2. the property’s overall cleanliness and appearance. 3. Good service is good business Introduction to Hospitality/Front Office What influences repeat business? (cont.) Many things affect a guest’s selection of overnight accommodation. Buying influences include: Satisfactory experiences with a hotel. Advertisement by hotel or a chain organisation. Recommendation by others. Hotel’s location. Public relations activities. Direct mail communication. Travel agent’s negotiating power on room rate to control travel expenses. Introduction to Hospitality/Front Office