Introduction to Tourism
and Hospitality industry
Introduction to tourism and
hospitality industry
Learning Objectives
• Understand the tourism and hospitality
industry
• Overview of the different tourism sectors
• Classification of lodgings
• Analyze different kinds of consumers and
what satisfies their travel needs
Why study Tourism and
hospitality?
• Employs 214 million people worldwide (est
2004) or 8.1% of total employment
• Leading economic contributor generating
10.4% of the world’s GNP (US$5,500B)
• Source :- World Travel & Tourism Council
How about local tourism and
hospitality industry?
• Estimated employment of 150,000 to
200,000 jobs
• 12% of GDP US$98.4B (2004)
• S$9.6 B tourism receipts (2004), S$6.9B
(2003), S$8.8B (2002)
Source : Travel News Daily
Tourism’s economic contribution
in Singapore
• Integrated Resort complex (Hotels and
casinos) expected to hire 10,000 direct
staff plus indirect employment (5,000)
Tourism’s economic contribution
in Singapore
• Ready in 2008/2009 at Marina Bay and
Sentosa with theme parks, shopping
plazas, museum and convention halls
• Total incremental employment of 35,000
jobs (unemployment 75,000 2004)
Tourism’s economic contribution
in Singapore
• Total incremental GDP of S$1.3 Billion
• Tourism contribution from 13.1% 1993
to 6.1% 2002
• S$5B resort investment e.g. MGM-Mirage
CapitaLand, Harrah’s EntertainmentKeppel Land etc.
Tourism’s economic contribution
in Singapore
• Expected to generate USD26.9billion of
economic activity (Total Demand) in 2005
• 10.6% of GDP and 182,985jobs (8.3% of
total employment) in 2005
• Expected to grow 7.0% in 2005 and by
6.2% per annum, in real terms, between
2006 and 2015.
Singapore tourism’s vision
• On 11 January 2005, STB unveiled
Tourism 2015, its vision for Singapore’s
tourism industry over the next 10 years.
The STB aims to double visitor arrivals to
17 million, triple tourism receipts to S$30
billion and add 100,000 new jobs to the
tourism industry by 2015.
• Source :- Travel News Daily
Definition of Tourism
• Individuals or groups that are travelling
away from home requiring all providers of
activities, services, and industries that
delivers a travel experience
• e.g. You and your family travelling to
Australia
Definition of Hospitality
• Definitely not working in “Hospitals”
“Real” definition of hospitality
• Lodging and food services (food and
beverage) industries that cover theme and
amusement parks, entertainment outlets,
cruise companies
• E.g Any F&B providers locally or overseas
Hospitality industry
• Lodging :- continually changes to
accommodate its guests, necessity for
classifying hotels, cater to different groups
of individuals.
• May include hotels, motels, convention
hotels, farm stay, bed and breakfast and
apartments.
Types of accommodation
1) Luxury hotels and resorts e.g. 4
Seasons, Banyan Tree, Fullerton
2) Full serviced properties e.g. Ascott
3) Limited-Serviced properties e.g. no daily
housekeeping
4) All-suites’ hotels (serviced apartments)
Centrepoint
http://rentalo.com/3376/perthserviced.html
Foodservice operations
• Foodservice :- offering menu in different
forms from small establishments (push
cart) to large chain restaurant
organisations.
• Each foodservice operation responds to
the needs and expectations of its market
through its concept and menu.
Types of lodging ownership
1) Independent Ownership e.g. Bel Air
Hotel
2) Chain ownership e.g. Hilton International
3) Management Contract e.g. Raffles Hotel
4) Company-owned and operated e.g.
Furama
5) Franchise-licensed e.g. Holiday Inns
Types of lodging ownership
1) Independent Ownership : No affiliations,
usually hotels that are so famous e.g. Bel
Air Hotel in Los Angeles
• So small that they don’t have the
resources or see the need for brand
affiliations
Types of lodging ownership
2)
Chain Ownership :- Wholly owned by a
parent chain corporation e.g. Hyatt,
Hilton, Marriott or Fairmont, most
people believe that if a hotel has a
brand name, it’s owned by the parent
chain, not very true as it could be
“owned” in many forms.
Types of lodging ownership
3) Management Contract :- Provides
executives to run the hotel, may use the
chain’s brand name and reservations
system
• Odd situations where the management of
one chain (say, Marriott) oversees a
property owned or franchised by another
chain (e.g. Hilton)
Types of lodging ownership
4) Company owned and operated
own and run by its own executives in
areas of marketing, reservations, dayday operations of the various hotels
Types of lodging ownership
5) Franchised licensed
Outside person or company (a
franchisee) owns the property, pays a
royalty, a percentage of room sales, must
adhere to at least the minimum lodging
standards that the chain sets
Brands and brand families
• Represent a distinct value level e.g. Four
Seasons rep upscale and pricey, Motel 6
has a chain of budget Hotels, basic and
inexpensive
Classification of accommodation
Canada Select uses the following criteria to
classify hotels and motels in Canada. cleanliness,
state of repair and the amenities that each
property offers. Each star level incorporates the
requirements of the previous level and adds in new
criteria.
•
http://www.thebuccaneerinn.com/canada_sele
ct.htm
Ratings of hotel accommodation
1)
2)
3)
4)
5)
One Star
Two Star
Three Star
Four Star
Five Star
Ratings of hotel accommodation
•
•
•
•
•
•
•
•
•
•
5 Star
Exceptional quality with the highest standard of furnishings, flawless
service, meticulous guest care and exemplary provision and presentation of
all aspects of the business.
4 Star
Excellent quality, with the highest standard of furnishings, service and guest
care.
3 Star
Very good quality, with a commendable standard of furnishings, service and
guest care.
2 Star
Good quality, with a comfortable standard of furnishings, service and guest
care.
1 Star
Fair to Good quality, with an acceptable standard of furnishings and
adequate service and guest care.
Ratings of hotel accommodation
• Hotel Rate Type: San Francisco Hotels.
Hotel Ratings: AAA Rating: 3 Diamonds;
MOBIL Rating: 2 Star ...
How does it rate?
• Certain countries rate by governments on
lodging, e.g. Australia, France and Mexico
• Most nations rate by private organisations,
e.g. AAA, Michelin, Mobil Star Service
Categories of local hotels
1) Five star Hotels : Grand Hyatt, Meritus
Mandarin, Grand Copthorne Waterfront,
Goodwood Park, JW Mariott etc.
2) Four Star Hotels :- Orchard Parade,
Plaza Parkroyal, Traders Hotel, Carlton
Hotel etc.
Categories of local hotels
3) Three Star Hotels :- Albert Court, New
Park, Grand Central, Allson, Hotel Asia,
Oxford, Garden, Hotel Miramar etc.
4) Budget Hotels :- Hotel 81, Fragrance,
Metropolitan YMCA, Cactus, Dickson
Court, Metropole, Royal Peacock etc.
Sectors of the industry
• Transportation :- moving people and cargo
through airlines, ferry, cruise ships etc
• Tour operators :- run packaged travel,
independent tour packages with air/ground
and land components
Sectors of the travel industry
• Air industry :- airlines of all sizes and sorts
and all airlines’ supporting services
companies, for example, security, catering
services.
• International airlines include SQ, QF, CX,
EK and MH etc.
Sectors of the travel industry
• Travel agencies :- businesses that help the
public with their travel plans and needs, for
example, Chan Brothers, Sakura Travel,
Sunny Holidays, Reliance Travel etc.
Sectors of the industry
• Visitors’ Attractions :- some places have
become icons of the destination, for
example, Eiffel Tower (Paris), Disneyland
(Anaheim, California), Great Wall of China
(Beijiang, China), Harvard University
(Boston, MA)
Sectors of the industry
• Theme Parks :- “super” attraction,
businesses feature themed areas(e.g.
Disneyland’s Tomorrowland and
Frontierland sections), Orlando has the
highest concentration of theme parks
anywhere, including four within Walt
Disney World, two at Universal Orlando,
and one at SeaWorld
Sectors of the industry
• Car rentals :- different types of cars for
rental at various rental points with
facilities, for example, airports, hotels or
suburban locations, Brand names in the
industry include Avis, Budget, Hertz and
National etc.
Distribution channels
3 key players in distributing tourism and
hospitality products include :a) Consumers
b) Suppliers
c) Intermediaries
Why people travel?
Self-motivating factors :- understand other
cultures, beliefs, values, see the world,
Three types of travelers
1) Dependables
2) Venturers
3) Centrics
Three types of travellers
1) Dependables :- Prefer predictable
routine lives and avoid unusual things or
challenging situations
2) Venturers :- bolder people, different and
challenging things and love to travel to
unusual, exotic places
Three types of travellers
3)
Centrics :- psychological middle ground
between dependables and venturers,
little adventure in their lives but not too
much
Summary
• Singapore’s tourism and hospitality
industry is a major economic contributor to
the economy
• Tourism and hospitality sectors work
closely together to ensure an increase in
its tourism receipts
• Singapore’s government is expected to
introduce casino and Formula One when
possible