MODULE 1 The Lodging Dimensions LEARNING OUTCOMES: At the end of this Lesson you are expected to do the following: LESSON 1- THE OVERVIEW OF THE HOSPITALITY INDUSTRY L.O 1 – Introduce the symbol of the hospitality industry. L.O 2 – Understand the scope of the hospitality and tourism industry. L.O 3 - Define the hotel and determine the classification various hotel rating system. L.O 4 - Present concepts like hotel management contracts and time shares. L.O 5 - Familiarize hotels locally. L.O 6 - Discuss the standards of the hotel based on DOT’s policies in the accreditation of hotels HPC 2 – Fundamentals of Lodging Operations 1 What Do You Need To Know? Lesson 1 – The Overview of the Hospitality Industry What is Hospitality? The hospitality field, by definition, is a service industry. Its task is to create shareholder wealth by servicing and satisfying guests. Industry segments include, among others: hotels, restaurants, private clubs, managed food service, event planning, tourism related businesses, and travel providers. More often than not, the product purchased is either intangible or the perceived quality of the product purchased is impacted by the service method in which it was received. Langhorn (2004) noted that in hospitality, the service provider is “part of the product itself”. For guests to be satisfied, they not only must believe that they have received a valuable service for their dollar, but also feel valued and respected by the workers providing the service (Kernbach & Schutte, 2005; Langhorn, 2004; Varca,2004; Winsted, 2000). Defining the Hospitality Industry The Hospitality Industry include the companies or organizations which provide food and/or drink and/or accommodation to people who are away from home. The hospitality industry meets the needs of people with kindness and goodwill while they are away from their homes. 1. The hospitality industry is about service. The industry provides service to people when they are away from their home, and sometimes even when they are home. For example, home delivery of food would be part of the hospitality industry as would a masseuse that does home visits or a cook that does at-home cooking lessons or catering. 2. The hospitality industry is about diversity. There are small, large, privately owned, and publicly owned businesses. There are people of every HPC 2 – Fundamentals of Lodging Operations 2 socioeconomic class, cultural background, race, age, and religion involved with H&T, both in providing and receiving the services. The H&T industry reaches every corner of the globe, while providing jobs, entertainment, food, transportation, and a place to sleep. 3. The hospitality industry is about entrepreneurs. The H&T industry is full of businesses that serve people and are owned by a single person or family. This means not only are there many H&T jobs working for someone else, there is a lot of H&T opportunity to work for yourself. Worldwide examples of entrepreneurs creating small businesses that became big business are: McDonalds, Marriott hotels, Holiday Inn hotels, Albertsons food stores, and Southwest Airlines. 4. The hospitality industry is complex. It covers a wide range of jobs, locations, activities, and economic brackets. The hospitality industry meets the needs of people with kindness and goodwill while they are away from their homes. There are four sectors of the hospitality industry: food and beverage, lodging, recreation, and travel and tourism. 1. The food and beverage industry, also known as the foodservice industry, consists of businesses that prepare food for customers. The number of people employed in foodservice industry is expected to double by 2015 to approximately 22 million people. 2. Lodging, also known as accommodation, is a place to sleep for one or more nights. A business in the lodging industry provides a place for people to sleep overnight. It can be one of many sleeping places such as a fancy hotel, a youth hostel, an elder hostel, a campground, or highway side motel. 3. The travel industry is in the business of moving people from place to place. 4. Tourism industry provides those people with services that promote travel and vacations. Busses, planes, cabs, boats, and passenger trains are all part of the travel industry while travel agencies, tour operators, cruise companies, convention planners, and visitors bureaus are all part of the tourism industry. HPC 2 – Fundamentals of Lodging Operations 3 http://www.montana.edu/hhunts/MAFCS WEBSITEDEVELOPED008/MAFCS 2007 Student Lesson Plans/Unit Planadobe files/Lesson 1 Intro to H T Lesson Plan.pdf THE PINEAPPLE TRADITION The pineapple has enjoyed a rich and romantic heritage as a symbol of welcome, friendship, and hospitality. Pineapples were brought back from the West Indies by early European explorers during the seventeenth century. From that time on, the pineapple was cultivated in Europe and became the favored fruit to serve to royalty and the elite. The pineapple was later introduced into North America and became a part of North American hospitality as well. Pineapples were displayed at doors or on gateposts, announcing to friends and acquaintances: “The ship is in! Come join us. Food and drink for all!” Since its introduction, the pineapple has been internationally recognized as a symbol of hospitality THE INTERRELATED NATURE OF HOSPITALITY AND TOURISM INDUSTRY The hospitality and tourism industry is the largest and fastest-growing industry in the world. Under the umbrella of travel and tourism, countless professions are necessary to meet the needs and wants of people away from home. All of these scopes have an effect on each other. LODGING PROPERTIES DEFINED Lodging property may be defined as an establishment that charges fees for providing furnished sleeping accommodations to persons who are temporarily away from home or who consider these accommodations their temporary or permanent homes. Many of these establishments also provide food, beverages, cleaning services and a range of other services normally associated with travel commonly sought by travelers. HPC 2 – Fundamentals of Lodging Operations 4 Classification of Lodging Accommodation Establishment 1. According to Location a. Convention Hotel. Convention properties that have been the capability of hosting conferences and meetings. They have multiple meeting rooms and often large spaces where trade shows can be held. Conventions are the primary source of business. b. Commercial Hotel. Commercial Properties are generally located in intercity for the convenience of the business traveler. These establishments have business centers, featuring office equipment for guests use, and full in-room modem connections. c. Resort Hotel. A resort hotel described as a lodging establishment that attract pleasure travelers or vacation seekers and offers recreational activities such as sunning at the beach, skiing, horseback riding, physical fitness training, golfing and playing tennis and other activities. d. Casino Hotel. Casino Properties offer patron opportunities to sleep cheap, yet spend big. They offer low room rates and low food costs because profits are made primarily through the gaming. e. Extended Stay. The term “extended stay” denotes facilities designed for guests who need long-term accommodations. They usually include kitchen and sitting rooms in each unit, thus are also called “suite” properties. HPC 2 – Fundamentals of Lodging Operations 5 According to Functions and Primary Market a. Center City. Center-city properties are usually along the business district. They usually cater to business travelers and are capable of hosting large conferences. b. Sub-urban. Lodging properties located in the suburbs often near shopping centers or recreational facilities, such as golf courses. c. Resort. Resort refers to properties usually seen in areas of great scenic beauty or with outstanding recreational facilities. d. Highway Hotel. Properties that are located in isolated areas, where there is no competition wherein they can charge higher rates. e. Airport Hotel. Lodging facilities that are located in isolated areas, where there is no competition wherein they can charge higher rates. 2. According to Size a. b. c. d. Small hotels - up to 100 rooms Medium hotels - 100 - 200 rooms Medium-large hotel - 200 - 500 rooms Large hotels - over 500 rooms 3. According to Quality Ranking a. Five Stars. Outstanding, one of the best in the country. Exhibits an exceptionally high degree of service; striking, luxurious facilities with HPC 2 – Fundamentals of Lodging Operations 6 many extra amenities. b. Four Stars. Excellent, top-quality design and service. Displays a high level of service and hospitality. Properties offer a wide variety of amenities and upscale facilities inside the room, the grounds, and in the common areas. c. Three Stars. Offers a degree of sophistication. Additional amenities, services, and facilities may be offered. 4. According to Amenities and Facilities This refers to the amenities and facilities offered in the hotel. a. b. c. d. Deluxe First Class Standard Hotel Economy Hotel HPC 2 – Fundamentals of Lodging Operations 7