Chapter 1- The Hospitality Industry
Terms to Know
hospitality
travel package
brand
hospitality industry
recreation
franchise
food-service industry
recreation industry
lodging
accommodation
service
travel package
professional association
lodging industry
tourism industry
travel industry
complexity & diversity
eco-tourism
First a little history!
The word hospitality comes from the Latin word hospes, which means host
or guest. Hospitality has come to mean meeting the needs of guests with
kindness and good will. The word restaurant comes from the Latin word
restaurare, which means “to restore.” After the French Revolution in the
1700s many chefs of the French nobility were settling throughout Europe.
By the 1800s numerous fine eating-and –drinking establishments were
operating globally. The word travel is related to the French word travail,
which means “work.”
The hospitality industry provides services to peoples away from home.
These services include: food, lodging, recreation & entertainment, tourism
& travel.
Hospitality is a people serving people business. Service is at the heart of
the hospitality business. The goal of the hospitality industry is to make sure
that guests feel good, safe, and happy as a result of using their business.
1
The Tourism industry is a group of businesses that encompass
travel/transportation vendors for air, rail, auto, cruise, and motor-coach
travel and promote travel and vacations.
The growth and development of the Tourism industry has been linked
throughout history to the development of transportation systems. The
wheel was invented around 3000 B.C. The Egyptians advanced travel by
building the first water vessels around 2000 B.C. Travel by Missionaries
and Priests after the fall of the Roman Empire in the 5th century A.D.
During the 14th, 15th and 16th centuries Grand Tours became popular for
young aristocratic men. These tours involved 2 – 5 year travels to study the
language and culture of another country. This was also a period when royal
courts financed ocean voyages of discovery to find new lands and seatrade routes. The Industrial Revolution of the 1700s led to the
development of rail service. The 1900s mass production of the automobile
and the construction of superhighways made more destinations accessible
to more travelers. The invention of flying and airplanes led to quicker
global travel.
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 18 million people, or 1 of every 8
jobs.
Some of the jobs in the hospitality industry are:
Servers
Chefs
Travel Agents
Front Desk hosts
Room Attendants
Tour Operators
Hotel & Motel Managers
Meeting & Event Planners
Restaurant Managers
Convention/Visitor Bureau Workers
Catering Employees
Theme Park & National Park Employees
2
The hospitality industry is important to the U.S. economy because it
generates more than $1 trillion 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 service provided, size, type and staff 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
successfully meet customer needs.
1. Food & Beverage segment consists of businesses that prepare food for
customers. It is also known as the foodservice industry. Many food and
beverage businesses are located in another business, ex. movie
theaters, airports, malls. These businesses vary from large to small,
casual to fancy/formal.
2. Lodging segment a/k/a Accommodations 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 are as well.
3
3. Travel segment is the industry that moves people from one place to
another. Travel can be for business or pleasure. 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.
4. Tourism segment consists of businesses that organize and promote
travel and vacations. 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 several segments of the hospitality industry, such as
transportation, lodging, meals, and entertainment. One fee is charged
for the package that covers all of the arrangements. Professional Travel
Planners work for Tour Companies to sell packages to consumers.
5. Recreation segment 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 – 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
 Stop here for project - Students will begin to create a Collage of
the Hospitality & Tourism Industry by locating 3 examples of the
5 areas from magazines. The examples will be glued to construction
paper. Each area will be labeled. A rubric will be given with the
assignment.
4
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. VFR travel is travel for the purpose of visiting friends or
relatives. Reasons for pleasure travel are: to get rid of stress, to enrich
perspective on life, to bring family closer together, to do what they wanted,
when they wanted and to feel alive and energetic
Business travel usually occurs during the week, not on the weekend, and
can involve multiple destinations and methods of travel. It is done as a part
of a job or occupation and is often necessary for business success. The
employer decides what employees travel; the employer pays for all the
travel, food, and lodging expenses. Most companies budget a certain
amount of money for business travel every year. Business travelers want to
travel efficiently and economically. Challenges of business travel include:
stress, time management, long absences from home, and language or
cultural barriers. Incentives for business travel include: frequent-flyer miles,
travel in business/first class on airlines, and favored treatment at hotels
and car-rental companies.
Trends in the Hospitality and Tourism Industries
Safety and security - of both tourist and their personal information
Diversity – increase in number of women traveling for business, Baby
Boomers traveling, short weekend vacations are increasing in number,
Ecology /ecotourism – adventure tourism and sustainable tourism;
Sustainable tourism is tourism that allows a destination to support both
local residents and tourists without compromising future generations. It is
important because it protects the future of industry in that area.
Convenience to travelers and tourist
5
Technology- websites, internet access, information-management systems,
guest services
Environmental negative impact considerations:
1. water use by resorts, lodging properties, etc must be considered
2. pollution –air pollution due to energy production, air, road & rail
travel; noise pollution can stress wildlife and damage human
hearing; aesthetic pollution-signage that ruins natural beauty
3. environmental impact – trash and garbage that is left behind by
tourist must be disposed of properly
Positive impacts:
1. revenue generated from fees, taxes and similar sources can help pay
for the protection and management of sensitive environments
2. employment of local residents can improve the economy of the area
Professional Associations
Professional associations are groups of individuals organized to improve
themselves, their profession, and their 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 scholarships to 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. Leadership skills
and abilities are learned and developed through involvement in
professional associations.
6
Professional associations work in five areas: professional development,
standards and ethics, networking, public relations, and government
relations.
1. Professional development – continuing education via workshops,
web-based seminars, annual meetings, journals, newsletters, books
and other publications
2. Standards and ethics – standards for the practice of the profession,
ex. food safety and sanitation standards were developed by the
NRA. A Code of Ethics is proper professional behavior for members
of the profession.
3. 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.
4. 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.
5. Government relations – involves informing all three levels of
government, local, state and national, about the issues that are
important to the profession. These relationships can and will affect
public policy and legislation.
Overall the future is bright and full of promising opportunities and
challenges for people who are interested in these fields.
7