UNIVERSITY OF MINDANAO

College of Hospitality Education

Program Hospitality Management

Physically Distanced but Academically Engaged

Self-Instructional Manual (SIM) for Self-Directed Learning (SDL)

Course/Subject: THC 5- Micro Perspective of Tourism and Hospitality

Author: Jacqueline M. Cenizal, MBA

THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY, NOT FOR REPRODUCTION AND
DISTRIBUTION OUTSIDE OF ITS INTENDED USE. THIS IS INTENDED ONLY FOR THE
USE OF THE STUDENTS WHO ARE OFFICIALLY ENROLLED IN THE
COURSE/SUBJECT.EXPECT REVISIONS OF THE MANUAL.
 College of Hospitality Education
Floor, HRM Building
Matina Campus, Davao City
Telefax: (082)297-7024

TABLE OF CONTENTS

Page

COURSE OUTLINE………………………..………………………….……………… 5
Course Outline Policy ………………………………………………………... 5
Course Information ………………………………………………….............. 6

PART 2: INSTRUCTION PROPER ..………………………………………............... 8

BIG PICTURE (Week 1-3) ………..………………………………………….............. 9
ULOa..……………………………………………………………………………. 8
Metalanguage ………………….………………………………………………. 8
Essential Knowledge ………………………………………………………….. 9
Self-Help ……………………………………………………………………….. 13
Let’s Check …………………………………………………………………….. 14
Let’s Analyze …………………………………………………………………… 15
In a Nutshell ……………………………………………………………………. 16
Q&A List ………………………………………………………………………… 17
Keyword Index ……………… ……………………………………………….. 17
ULOb . .………………………………………………………………..……… 18
Metalanguage …………………………………………………………………... 18
Essential Knowledge …………………………………………………………… 19
Self-Help …………………………………………………………………………. 21
Let’s Check ………………………………………………………………………. 22
Let’s Analyze …………………………………………………………………….. 22
In a Nutshell ……………………………………………………………………… 23
Q&A List ………………………………………………………………………….. 24
Keyword Index …………………………………………………………………… 24

ULOc .………………………………………………………………………….. 24
Metalanguage…………………..………………………………………………… 24
Essential Knowledge ……………………………………………………………. 25
Self-Help…………………………………………………………………………... 30
Let’s Check……………………………………………………….. 30
Let’s Analyze……………………………………………………… 31
In a Nutshell………………………………………………………. 32
Q&A List…………………………………………………………… 33
Keyword Index…………………………………………………… 34

BIG PICTURE (Week 4-5)…………………………………………...................34

ULOa
Metalanguage…………………………………………………..…34
Essential Knowledge……………………………………………..35
Self-Help…………………………………………………………...43
Let’s Check………………………………………………………..43

Page 2 of 26
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Let’s Analyze………………………………………………………44
In a Nutshell……………………………………………………….45
Q&A List……………………………………………………………46
Keyword Index…………………………………………………… 47
ULOb
Metalanguage…………………………………………………..…47
Essential Knowledge……………………………………………..48
Self-Help…………………………………………………………...52
Let’s Check………………………………………………………..52
Let’s Analyze………………………………………………………53
In a Nutshell……………………………………………………….54
Q&A List……………………………………………………………54
Keyword Index………………………………………………….…55
BIG PICTURE (Week 6-7)…………………………………………...................56
ULOa
Metalanguage…………………………………………………..…56
Essential Knowledge……………………………………………..56
Self-Help…………………………………………………………...61
Let’s Check………………………………………………………..61
Let’s Analyze………………………………………………………62
In a Nutshell……………………………………………………….62
Q&A List……………………………………………………………63
Keyword Index…………………………………………………… 63
ULOb
Metalanguage…………………………………………………..…64
Essential Knowledge……………………………………………..65
Self-Help…………………………………………………………...70
Let’s Check……………………………………………………….. 70
Let’s Analyze………………………………………………………71
In a Nutshell……………………………………………………….72
Q&A List…………………………………………………….……..72
Keyword Index…………………………………………………… 73
BIG PICTURE (Week 8-9)………………………………………….....................73
ULOa
Metalanguage……………………………………………..……...73
Essential Knowledge…………………………………….……....74
Self-Help…………………………………………………… ……. 79
Let’s Check…………………………………………… ……….... 80
Let’s Analyze……………………………………………..……… 80
In a Nutshell……………………………………………………… 81
Q&A List………………………………………………… ….…… 81
Keyword Index………………………………………….…..…… 81
ULOb
Metalanguage……………………………….………………… 82
Essential Knowledge…………………………….………….... 83
Self-Help…………………………………………….……….... 88
Let’s Check………………………………………….……….... 88
Let’s Analyze………………………………………………..… 89
In a Nutshell…………………………………………………… 89

Page 3 of 26
 College of Hospitality Education
Floor, HRM Building
Matina Campus, Davao City
Telefax: (082)297-7024

Q&A List……………………………………………….…….…
Keyword Index………………………………………………… 90

Course Outline: THC 5 - Micro Perspective of Tourism and Hospitality

Course Coordinator: Jacqueline M. Cenizal, MBA

Email: [email protected]
Student Consultation: Online Consultation (thru Blackboard)
Send a text message before the online consultation
Mobile: 09177055532
Phone: (082)297-7024
Effectivity Date: June 2020
Mode of Delivery: Blended (On-Line with face to face or virtual sessions)
Time Frame: 54 Hours
Student Workload: Expected Self-Directed Learning
Requisites: THC 1
Credit: 3
Attendance A minimum of 95% attendance is required at all
Requirements: scheduled Virtual or face to face sessions.

Course Outline Policy

Areas of Concern Details

Contact and Non-contact This 3-unit course self-instructional manual is
Hours designed for blended learning mode of instructional
delivery with scheduled face to face or virtual
sessions. The expected number of hours will be 54
including the face to face or virtual sessions. The face
to face sessions shall include the summative
assessment tasks (exams) since this course is crucial
in the licensure examination for teachers.
Assessment Task Submission of assessment tasks shall be on 3rd, 5th,
Submission 7th and 9th week of the term. The assessment paper
shall be attached with a cover page indicating the title
of the assessment task (if the task is performance),
the name of the course coordinator, date of
submission and name of the student. The document
should be emailed to the course coordinator. It is also

Page 4 of 26
 College of Hospitality Education
Floor, HRM Building
Matina Campus, Davao City
Telefax: (082)297-7024

expected that you already paid your tuition and other

fees before the submission of the assessment task.

If the assessment task is done in real time through

the features in the Blackboard Learning Management
System, the schedule shall be arranged ahead of time
by the course coordinator.

Since this course is included in the licensure

examination for teachers, you will be required to take
the Multiple-Choice Question exam inside the
University. This should be scheduled ahead of time
by your course coordinator. This is non-negotiable for
all licensure-based programs.

Turnitin Submission (if To ensure honesty and authenticity, all assessment

necessary) tasks are required to be submitted through Turnitin
with a maximum similarity index of 30% allowed. This
means that if your paper goes beyond 30%, the
students will either opt to redo her/his paper or
explain in writing addressed to the course coordinator
the reasons for the similarity. In addition, if the paper
has reached more than 30% similarity index, the
student may be called for a disciplinary action in
accordance with the University’s OPM on Intellectual
and Academic Honesty.

Please note that academic dishonesty such as

cheating and commissioning other students or people
to complete the task for you have severe
punishments (reprimand, warning, expulsion)
Penalties for Late The score for an assessment item submitted after the
Assignments/Assessments designated time on the due date, without an approved
extension of time, will be reduced by 5% of the
possible maximum score for that assessment item for
each day or part day that the assessment item is late.

However, if the late submission of assessment paper

has a valid reason, a letter of explanation should be
submitted and approved by the course coordinator. If
necessary, you will also be required to present/attach
evidences.

Page 5 of 26
 College of Hospitality Education
Floor, HRM Building
Matina Campus, Davao City
Telefax: (082)297-7024

Return of Assignments/ Assessment tasks will be returned to you two (2)

Assessments weeks after the submission. This will be returned by
email or via Blackboard portal.

For group assessment tasks, the course coordinator

will require some or few of the students for online or
virtual sessions to ask clarificatory questions to
validate the originality of the assessment task
submitted and to ensure that all the group members
are involved.
Assignment Resubmission You should request in writing addressed to the course
coordinator his/her intention to resubmit an
assessment task. The resubmission is premised on
the student’s failure to comply with the similarity index
and other reasonable grounds such as academic
literacy standards or other reasonable circumstances
e.g. illness, accidents financial constraints.

Re-marking of Assessment You should request in writing addressed to the

Papers and Appeal program coordinator your intention to appeal or
contest the score given to an assessment task. The
letter should explicitly explain the reasons/points to
contest the grade. The program coordinator shall
communicate with the students on the approval and
disapproval of the request.

If disapproved by the course coordinator, you can

elevate your case to the program head or the dean
with the original letter of request. The final decision
will come from the dean of the college.

Grading System All culled from BlackBoard sessions and traditional

contact

Exam 1-3 -- 30%

Quizzes -- 10%
Research -- 15%
Assignments -- 5%
Final exam – 40%

Preferred Referencing Style APA 6th Edition.

Student Communication You are required to create a umindanao email

account which is a requirement to access the
BlackBoard portal. Then, the course coordinator

Page 6 of 26
 College of Hospitality Education
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Matina Campus, Davao City
Telefax: (082)297-7024

shall enroll the students to have access to the

materials and resources of the course. All
communication formats: chat, submission of
assessment tasks, requests etc. shall be through the
portal and other university recognized platforms.

You can also meet the course coordinator in person

through the scheduled face to face sessions to raise
your issues and concerns.

For students who have not created their student

email, please contact the course coordinator or
program head.
Contact Details of the Dean Florence Kristina M. Jimenez
0922 432 5186
[email protected]
Contact Details of the Jacqueline M. Cenizal
Program 0917 770 5532
Head [email protected]
Students with Special Students with special needs shall communicate with
Needs the course coordinator about the nature of his or her
special needs. Depending on the nature of the need,
the course coordinator with the approval of the
program coordinator may provide alternative
assessment tasks or extension of the deadline of
submission of assessment tasks. However, the
alternative assessment tasks should still be in the
service of achieving the desired course learning
outcomes.
Instructional Help Desk [email protected]
Contact Details
Library Contact Details Brigida E.Bacani
[email protected]
09513766681
Well-being Welfare Support Ms. Danica Baja
Help Desk Contact Details 0975 560 4961

Page 7 of 26
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Floor, HRM Building
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Telefax: (082)297-7024

Course Information – see/download course syllabus in the Black

Board LMS

CC’s Voice: Hello future hoteliers! Welcome to this course THC 5: Micro Perspective of
Tourism and Hospitality. By now, I am confident that you really wanted to
become part of the hotel industry.

CO Before boarding into the real world of the hospitality industry as hotelier,
you are to analyze the impacts of external factors & trends on the different
tourism industry sectors, you are able to evaluate the different issues and
trends that affect the operation of tourism industry sector in the local setting
and distinguish the relationship of tourism marketing promotions with
tourism distribution channel.

Let us begin!

Big Picture

Week 4-5 : Unit Learning Outcomes (ULO): At the end of the unit, you are expected
to:
a. Expound the Accommodation reservations and promotion
b. Evaluate the importance of food and beverage to the hospitality and
tourism industry

Big Picture in Focus:

ULOa. Expound the Accommodation reservations and promotion

Metalanguage

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The accommodation sector is central to the travel and hospitality industry,

because people travelling to different areas require somewhere to stay, rest,
sleep and unwind. In fact, by many definitions, a tourist is only classed as such if
their stay exceeds 24 hours and they use some form of overnight
accommodation.

Management Contracts –agreement between investors or owners of a project, and a

management company hired for coordinating and overseeing a contract

Chain Accommodation Operations- An administration company, that manages

several hotels having the same name but being in different areas.

Rack Rates- the highest price at the hotel, without any discounts.

Overbooking - is selling more rooms than the actual available rooms. Hotels do it for a
reason.

Frequent Flyer programs – is a loyalty program offered by an airline. Many airlines

have frequent-flyer programs designed to encourage airline customers
enrolled in the program to accumulate points (also called miles, kilometers,
or segments) which may then be redeemed for air travel or other rewards.

Break Even Point - The point at which a business will make neither a profit nor loss

Fixed Costs - are those that stay the same regardless of the volume of business

Contribution Margin - is the average room less the variable costs of having a room
occupied

Variable costs - are those that change according to the number of guests in a hotel.

Tour wholesaler - supplies to retail travel agents, they DO NOT sell directly to
consumers. Wholesalers link individual tourism operators with
retailers.

Travel Agencies- An agency that makes the necessary arrangements for travelers.

Essential Knowledge

The lodging industry developed because of the need to provide accommodation for
travelers. Early roadside inns were mentioned in several instances in both the Old and
New Testaments. The development of the inn in the late medieval period was due to the

Page 9 of 26
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improvements in security in many European societies. The industrial Revolution and the
development of spas helped the growth of the hotel industry.
Coach service was established by innkeeper to attract business. The inn was used
not only as a boarding house but also as booking office, waiting place, eating
establishment, and as center of the town’s social activities. With the rapid development
of the railways in the 1820’s and 1830’s large hotels were built next to or across the
downtown railroad station.
After World War II, advances in air transportation led to the increased number of
travelers who demanded more and more hotel space. The widespread use of the car
led hoteliers to build more roadside motels.

 Ellworth Statler- the first hotel chain pioneer in the US.

 Conrad Hilton built:
o Waldorf Astoria (NY)- the world’s most popular hotel.
o Conrad Hilton Hotel (CHI) – the largest hotel in the US with 3,000 rooms
 Sheraton Chain- the fastest growing first -class hotels groups founded by Ernest
Henderson, now owned by International Telephone and Telegraph Company
(ITT)
 Holiday Inn Chain (1952) – by Kemmons Wilson, with its concept of clean,
comfortable, reasonably-priced accommodations for the ordinary traveler.
 Sun Vacation (1960s)- its popularity brought about the development of resort
hotel for vacation traveler provided special services.

Types of Accommodation Description

 Ten room boarding house or a building that
Hotel has a thousand or more rooms
 Convention and meeting facilities
 Recreation facilities
Twenty-four hour rooms service, with several
restaurants and bars and various types of
entertainment
 Only offers only and free parking to guests
Motels  Often found along busy highways
Cater primarily to transient and cost conscious
travelers
 Intended for vacation travelers
Resort Hotels  Range from budget to luxury
 Can accommodate family travelers and
even convention delegates
 Located near beaches and offer more

Page 10 of 26
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amenities shops, and recreation

opportunities
 Found principally in Europe
 Usually family-owned accommodation
Pension facilities
 Also known as Gasthaus
 Usually offer continental breakfast
 Known for their informal family atmosphere
Paradors  Unique to Spain Generally old castles,
convents, or monasteries converted into
hotels and operated by the government
 Often hotels with apartments
Condominium Hotels (condominiums), instead of basic rooms.
 Condominium units are sold by the hotel
developers to individuals who are given a
title to the physical real estate.
 Individual owners then contract the
developer or a management company to
operate the hotel and rent the space to
visiting tourist
 Developers or management company
receives a fee for managing and renting out
the units.

Types of Accommodation Description

 Camping is a popular form of overnight
Campgrounds accommodation in both Europe and north
America
 Usually appeal to families who travel in
recreational vehicle (RVs)
Stopping spots are often found in government
parks and forests
 A form of lodging which originated in
Bed and Breakfast Europe
 Provides a bed for the night and breakfast
the next day
Retired and semi-retired people with large
houses have contributed very much to the
growth of bed and breakfast.
Tourist Inn  Lodging establishments that cater to

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transient
Do not normally meet the minimum
requirements of an economy hotel
 Building with several independent and
Apartment- Hotels furnished or semi-furnished apartments
 Leased to tourists and travelers on a long-
term basis
 Offer basic services to its tenants similar to
hotels
 Hotels and resorts which cater to people
Health Spas who go to spas or mineral springs for
medical treatment or weight reduction
 Several health spas in Europe offer modern
techniques-medically supervised
rejuvenation program, which include
supervised diets and rigorous exercises to
shed fat and reduce weight
 The earliest form of overnight lodging for
Private homes travelers
 Provides lodging to tourists who cannot be
accommodated in hotels and motels during
peak vacation periods

Types of Accommodation Description

 The selling of vacation lodging usually
condominium for a specific week or
Timesharing weeks over a given number of years
 Started in Europe in the 1960s when
people found it difficult to make
reservations every year in popular
hotels during summer
The resort would rent the units during the
time when the owner was not in
residence, providing an income to help
with the payments
 Provide basic amenities, bunk bed and
Hostels commonly shared toilet and bathroom

Page 12 of 26
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 Travelers provides his or her bedding

Appeal primary to young travelers

CLASSIFICATION OF HOTELS

Different ways of classifying hotels:

LOCATION GUEST TYPE PRICE

Center City Commercial Economy

Suburban Conventions Standard
Airport Resort First class
Highway Deluxe

RATING SYSTEMS
The following are used to rate hotels, motels, inns, resorts, and guests ranches.

1 2 3 4 5

Good, better Very good Excellent Outstanding One of the

than average best in the
country

ORGANIZATION OF LODGING INDUSTRY

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MANAGEMENT METHODS

Franchising
 Usually owned and operated by the same person or company
 Franchisee signs a contract with the franchisor to maintain certain operating
standards
 Franchisee’s benefits come from:
o National and international ads
o The use of the franchisor’s operating and accounting system
o A line into the franchise chain’s reservation system
o Franchisee shall pay a royalty, advertising fee plus a percentage of annual
sales or a specified number of dollars for each room sold.

Management Contracts
 For operating the property for the landlord, the management company receives a
basic annual management fee, plus an incentive, which is based on the hotel’s
gross profit and/or net.
 Developers who do not have experience in hotel management usually build large
hotels and then turn them over to hotel management companies to run them.

Chain Accommodation Operations

 Individual units in the chain may all be owned by one large company, be partly
owned and partly franchised, or may all be franchised.
 The owning company of franchisor establishes the standards and operating
policies to which each individual unit must conform.

Page 14 of 26
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 Chain operations often have the potential to implement employee selection and
training programs, to buy major equipment and furniture in bulk and to conduct
market research.

Referral Groups
 Individual owner or operator can remain independent, while achieving many of
the benefits of a chain group

HOTEL TERMINOLOGY
Room rates in the hotel quoted in terms of what meals are included in the price.

EUROPEAN AMERICAN MODIFIED CONTINENTAL BERMUDA

PLAN PLAN AMERICAN BREAKFAST PLAN
(EP) (AP) PLAN (CB) (BP)
(MAP)

No meals Includes Includes Offered by most Offered by

included breakfast, breakfast and European hotels hotels in
lunch, and dinner but Bermuda
dinner in the not lunch or
quoted price breakfast and
lunch but not
dinner

Most Known as Known as “ Known as “hotel Included a

commonly “full pension” demi pension” garni” or “: room and
used room in Europe in Europe pension garni” a full
rate quoted English or
by north American
American breakfast
hotels
Meals are Included in the
usually a fixed room rate which
menu with little consists of rolls,
or no choice coffee and
sometimes juice

Page 15 of 26
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ROOM RATES

Rack Rates – the maximum rate that hotels charge for a room which depend on the
number of people occupying it.

o The Revenue that is not obtained for a guest room is gone and cannot be
recovered.
o Profits on banquet meals and sales of liquor make up for the discounted
room rates.

HOTEL PROFITABILITY

The following are simple measures of hotel’s profitability:

 Room Occupancy
o Obtained by dividing the number of rooms occupied by guests on any
night by the number of rooms in the hotel, and by multiplying the result by
100
o During the peal season, a hotel may have 100 percent occupancy or close
to it. However, occupancy can be very low at other times of the year

 Double Occupancy
o Double occupancy rate is the number of rooms occupied by more than
one person
o Double occupancy is determined by dividing the number of guests
accommodated during a certain period by the total number of guest rooms
during that same period.

 Average Rate per Room Occupied

o The average rate will increase if more expensive rooms are sold or if more
rooms are double or triple occupied
o The average room rate is obtained by dividing the revenue for period by
the number of rooms occupied during that period.

 Average Daily Rate per Guest

o This is obtained by dividing total room revenue for a period by the total
number of guests accommodated during that period.

 Average length of Stay

o To maximize revenue and increase room occupancy, hotels try to increase
the length of stay of customers through advertising and other marketing
methods.

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BREAK EVEN POINT - The point at which a business will make neither a profit nor loss

FIXED COSTS - are those that stay the same regardless of the volume of business

CONTRIBUTION MARGIN- is the average room less the variable costs of having a
room occupied

VARIABLE COSTS - are those that change according to the number of guests in a
hotel.

ACCOMMODATION RESERVATION

 Large hotels have computerized reservation systems, but overbooking occurs.

 Overbooking is selling more rooms than the actual available rooms. Hotels do it
for a reason
 Hotels use different methods to avoid overbooking and reduce the no show
factor.
o Registration Cards
 Provides information about the guests such as his name, address,
geographical origin, and other facts
 Can be expanded to include names and addresses of clients who
have made reservations, cancelled them, and even customers who
made reservations but never arrived.
 Used to produce a typical customer profile

HOTELS AND AIRLINES

Three major reasons why airline companies link with hotels (Lane,1994):
1. Their desire to protect insisting business and develop future business, thus
increasing their profits
2. The expectations that hotel ownership will boost tourism development in their
home countries.
3. The desire to expand culture

Frequent Flyer Links – Airline’s frequently flyer programs are linked to hotel usage,
thus, granting the passengers with extra mileage points for staying in
participating hotels.

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ACCOMMODATION PROMOTION
Most accommodation establishments promote their properties to members of the
travel trade, as well as to tour wholesalers and travel agencies. Travel trade
advertisements emphasize the benefits that will be derived by the tour wholesalers or
travel agency in recommending the hotel.
Hotels use the direct mail approach to groups who would like to hold meetings,
conventions, or conferences in the hotel. Corporate rates are also offered to large
companies. Travel journals, travel and recreation magazines and airline in flight
magazines are used for advertisements.
Short video cassettes about large resorts’ properties are given away or sold.
Several chain organizations emphasizes their image and uniqueness in their
advertising. Some accommodation entities feature the hotel’s president or general
manager or chef in their advertisements.

Self-Help: You can also refer to the sources below to help you further understand
the lesson:

Micro Perspective of Tourism and Hospitality; Zenaida Cruz (2019)

https://www.tourismcouncilwa.com.au/tourism-distribution Retrieved May11, 2020

https://www.lexico.com/definition/travel agency Retrieved May 11, 2020

https://www.researchgate.net/publication/
247753081_Fundamentals_of_Tourism_Development_a_Third_World_Perspective

Q&A LIST.

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This section you can list down all emerging questions. These questions or issues
may be raised in the LMS or other modes. You can write the answers after
clarification. The Q&A portion helps in the review of concepts and essential
knowledge.

Do you have any question for clarification?

Questions/Issues Answers
1.

2.

3.

4.

5.

KEYWORDS INDEX

Break Even Point Chain Accommodation Operations

Contribution Margin Fixed Costs
Frequent Flyer programs Management Contracts
Overbooking Rack Rates
Tour wholesaler Travel Agencies
Variable costs

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Big Picture in Focus:

ULOb. Evaluate the importance of food and beverage
to the hospitality and tourism industry

Metalanguage

The food and beverage sector has an interesting role within the tourism industry,
providing tourists with essential refreshments at all stages of their travel experience,
including during travel, when spending time in their chosen accommodation, and when
they are out and about exploring the location they have travelled to. Theses are the
necessary terms you might encounter as you go along the study of Food and Beverage
role in the hospitality industry. These terms will help understand its role to the industry.

Family Restaurant. An eating establishment that serves relatively simple food at

reasonable prices and welcomes children as well as adults.

Gourmet Restaurants. A restaurant with cultural ideal associated with the culinary arts
of fine food and drink, or haute cuisine, which is characterized by
refined, even elaborate preparations and presentations of
aesthetically balanced meals of several contrasting

Ethnic Restaurants. Ethnic restaurants specialize in ethnic or national cuisines

Deli shops. A shop that sells food for you to eat immediately and usually sells many
other things that you might purchase at a convenience store, such as
newspapers, gum, etc.

Buffet Restaurants. A system of serving meals in which food is placed in a public area
where the diners serve themselves.[1] A form of service à la française,
buffets are offered at various places including hotels, restaurants, and
many social events. Buffet restaurants normally offer all-you-can-eat food
for a set price, but some measure prices by weight or by number of
dishes.

Gross Profit. a metric analysts use to assess a company's financial health by

calculating the amount of money left over from product sales after
subtracting the cost of goods sold (COGS).

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Food Cost Percentage. Calculation tool used to measure how a finished goods cost. It
is determined by dividing the food cost for a period (a day, a week, a
month) by the sales for that same period and then multiplying it by 100.

Airline Catering. A business that provides food service at a remote site,

specifically airline companies. It involves providing meals for passengers
on board an aircraft as well as for restaurants situated at airport terminals

Essential Knowledge

 The forerunner of the modern restaurant that provides hot and food and drink
developed in Rome
 The early inns provided bread and wine to travelers
 London (1200) – public cook shops were opened which offered precooked take-
out food
 16th century – British inns and taverns began to serve one meal a day at a fixed
time and price and at a common table.
 Restaurant- was first used in the late eighteenth century for a Paris dining room
serving light dishes.
 Hamburger- first served in 1904 at the St. Louis World’s fair
 First root beer stand- founded by Roy Allen and Frank Wright
 1960s – fast food establishments emerged

TYPES OF RESTAURANT

Family /
Commercial Coffee shops Cafeterias
Restaurants

Gourmet Ethnic Fast Food

Restaurants Restaurants Restaurants

Buffet Transportation
Deli shops
Restaurants Restaurants
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Family or Commercial Restaurants

 Offer wide menu of “meat and potato” selections with a price range that appeals
to an average family income
 Operating hours usually from early evening to midnight

Coffee Shops
 Usually located in an office building or shopping mall
 Peak periods usually lunch and coffee breaks
 Operating hours from early morning to early evening

Cafeterias
 Usually located in shopping centers and office buildings
 Self-service is typical with limited menus of soups entrees, desserts, and
beverages.
 Operating hours- depend on the location as school, office building, airport, or
highway

Gourmet Restaurants
 Cater to those who want a higher standard and are willing to pay the price
 Menu and wines are carefully planned
 Staff are highly trained
 Operates usually in the evening

Ethnic Restaurants
 Feature the food of a specific region or country
 Must serve authentic cuisine of the region or country they are featuring to be
successful
 Prices range from budget to high

Fast Food Restaurants

 Franchising is common in this type of restaurants.
 Requires a well-trained staff to operate
 Franchisor set standards of service and food quality
 These restaurants are pioneers in establishing more efficient food- operating
systems.

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Deli Shops
 Provide delicatessen food service, combining traditional delicatessen cold meats
and cheese with take-out sandwiches, salads, and similar items
 Have low labor costs because only one or two owners and employees are
involved

Buffet Restaurants
 Establish on a completely self-serve basis
 Usually” all you can eat” hot and cold food for one price
 Cater to families thus, offering reasonable prices

Transportation Restaurants
 Found along auto and bus transportation routes, and in bus, rail, and air
transportation buildings
 Cater to tour groups, particularly

RESTAURANT PROFITABILITY

Food Cost Gross Labor

Percentage Profit Costs

Average Break Even

Menus
Guest Check Point

Food Cost Percentage - Often used to measure a restaurant’s marketing success.

Determined by dividing the food cost for a period (a day, a week, a month)
by the sales for that same period and then multiplying it by 100.

Gross Profit – the selling price of an item less its food cost.

Labor Costs – controlled by expressing them as a percentage of sales on a daily,

weekly, or basis and comparing the actual cost with the standard desired.

Average Guest Check - calculated by dividing the total revenue for a particular
period (a day, a week, a month or a year) by the total number of guests
served during that period.

Break-even Point - that point at which business will make neither a profit nor loss.

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o Fixed costs – costs that remain the same regardless of the volume of
business
o Contribution margin – average check fewer variable costs.

Menus – basic planning document for a successful restaurant.

AIRLINE CATERING

 a meal served to passengers on board a commercial airliner. These meals are

prepared by specialist airline catering services and normally served to
passengers using an airline service trolley.
 Drawbacks in airline catering are:
o Food quality - Cooking the meal on the ground; service it hours later in a
dry cabin atmosphere in the air to different people, with different food
preferences and whose main motivations is to travel, rather to eat.
o Logistics –
 Food preparation require:
 A forecast using the actual passenger reservations
 An allowance for standbys
 Last-minute reservations to have the correct raw material,
equipment and food production staff
 Preliminary meal counts- prepared from twenty-four to seventy-two hours
ahead
 Menus must be carefully selected for each flight to avoid serving the
same meal to a passenger on two succeeding segments of a trip or on a
round trip.

Self-Help: You can also refer to the sources below to help you further understand
the lesson:

Zenaida Cruz (2019), Micro Perspective of Tourism and Hospitality;

Lim, R. (2019). Micro Perspective on Tourism and Hospitality.

https://shodhganga.inflibnet.ac.in/bitstream/10603/120897/14/14_chapter%207.pdf
Retrieved Sept 28,2020

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https://www.researchgate.net/publication/
247753081_Fundamentals_of_Tourism_Development_a_Third_World_Perspective

Q&A LIST.

This section you are allowed to list down all emerging questions. These questions
or issues may be raised in the LMS or other modes. You can write the answers
after clarification. The Q&A portion helps in the review of concepts and essential
knowledge.

Do you have any question for clarification?

Questions/Issues Answers
1.

2.

3.

4.

5.

KEYWORDS INDEX

Family Restaurant Gourmet Restaurants Ethnic Restaurants

Deli shops Buffet Restaurants Gross Profit

Essential Knowledge Food Cost Percentage Airline Catering

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