Introduction to Hospitality Industry

Week (1) part one

Introduction to Hospitality/Front Office

Welcome to the Hospitality
Industry

Week (1)


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


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.


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.


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.


Lodging as Part of the Travel and
Tourism/Hospitality Industry

 Hospitality Industry includes:
– Accommodations
– Foodservices
– Other hospitality operations


Scope of Hospitality and Tourism Industry

 Travel  Meetings, Conventions and
 Air Expositions
 Cruise  Restaurants
 Rail  Managed services
 Coach
 Recreation
 Auto
 Ecotourism  Gaming
 Lodging  Attractions
 Hotels  Parks
 Motels
 Recreation


Cruise attendants


Airlines crews


Rail Attendants


Events and conventions


Scope of the Hospitality-Tourism Industry


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


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)


“Seven Deadly Sins of Service”
1. Apathy (absence of passion)
2. Brush-off (To ignore or behave coldly
toward;
3. Coldness
4. Condescension (lack of respect)
5. Robotics
6. Rule book
7. Runaround (form of evasive excuses )


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


Week (1)


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.


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.


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) 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.


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.


Types of Accommodation Venue


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


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.


Types of Hotels

· Commercial hotels/corporate hotels

· Airport hotels

· Suite hotels

· Extended stay hotels

· Residential hotels

· Resort hotels


Types of Hotels (continued)

· Bed and breakfast hotels

· Vacation ownership and condominium hotels

· Casino hotels

· Convention hotels

· Alternative lodging properties


Hotels
 Commercial Airport hotels
/corporate Hotels
Located in downtown or Located near the airports-
business districts- area especially international
that are convenient and airports.
of interest to their target
markets. Target Market: airline
passengers, cancelled
Guest amenities at
flight, airline personnel.
commercial hotels may
include complimentary Hotel-owned courtesy vans
newspapers, cable transport guests between
television, swimming the hotel and the airport.
pool, health club, high
speed internet access.


Corporate hotel


Airport Hotel


Hotels ( continued)
Suite Hotels  Resorts Hotels
Suite hotels are among the  Resort hotels are located in
newest and fastest-growing the mountains, on an island
segments of the lodging or exotic location away
industry. from crowded residential
areas.
These suite hotels feature
guestrooms with a living  More leisurely, relaxed
room and separate atmosphere
bedroom. Some guest suites
includes a compact
 Resort hotels provide
kitchenette with fridge and
special activities such as
mini bar. golf, sailing, skiing.
Target Market: Professionals
such lawyers, accountants


Resort Hotel


Hotels ( continued)
 Vacation ownership  Casino Hotels
hotel/time share hotel  Hotel with gambling
 Individuals who purchase facilities.
the ownership of
accommodation for a  Casino hotels attract
specific period of time- guests by promoting
usually one or two weeks gaming and provide a
a year. broad range of
 These owners then entertainment activities.
occupy the unit.  Some casino hotels are
 These hotels are very large, housing as
becoming popular in many as 4,000
resort areas. guestrooms


Casino Hotel


Serviced Apartments


Extended Stay Hotel


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


Levels of Service

• There are three levels of service:
• World-Class Service
• Mid-Range service
• Economy/limited Service


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)


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.

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.


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.


Ownership and Affiliation Categories

· Independent Hotels
· Chain Hotels

· Management Contract
• Franchise
• Referral Group


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


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.


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.


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.


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.


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.


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.


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.


Group travel

 Two kinds of group:
 An organised tours, travel for pleasure
 Business related group to attend meeting or
conventions


Hotel Revenue Sources

Guest Rooms
Meeting/Function Space
Outlets/Food and Beverage outlets

Why is this relationship so important?


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


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 Industry

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