2016 DHT1113 Topic 1 Overview of the Hospitality Industry
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The document provides an overview of the hospitality industry, outlining its scope, characteristics, focus on service, and career opportunities. It describes hospitality and tourism as the largest and fastest growing industries globally. Key aspects include delivering services and products and the importance of positive customer impressions. The document outlines the objectives of the hospitality industry as making guests feel welcome, ensuring operations run smoothly, and maintaining a profitable business. It also discusses the importance of corporate culture and philosophies like Disney's approach to exceptional customer service.
2016 DHT1113 Topic 1 Overview of the Hospitality Industry
- 1. Overview of the Hospitality industry DHT1113 Introduction to Hospitality and Tourism Industry Perak College of Technology Laura Law
- 2. OUTLINE • The Scope of the Hospitality Industry • Characteristics of the Hospitality Industry • Service-The Mission and Product of Hospitality • Pursuing Opportunities in Hospitality
- 3. After Reading and Studying This Chapter, You Should Be Able to: • Describe the characteristics of the hospitality industry • Explain corporate philosophy • Discuss why service has become such an important facet of the hospitality industry • Suggest ways to improve service
- 4. THE SCOPEOF THE HOSPITALITYINDUSTRY Topic 1 Overview of the Hospitality Industry
- 5. Hospitality and Tourism •Largest and fastest growing industries •Common dynamics: • Delivery of services and products • Customer and guest impressions are critical
- 6. About hospitality History of hospitality • The meaning of the word “hospitality” comes from HOSPICE (a home providing care for the sick or terminally ill - end-of-life care) 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 became the favored fruit of royalty and the elite • Today, it is globally recognized as a symbol of hospitality
- 7. The Pineapple Tradition •Symbol of welcome, friendship, and hospitality •Recognized internationally •Foundation for concept of “SERVICE”
- 8. Scope of Hospitality and Tourism Industry • Travel • Air • Cruise • Rail • Coach • Auto • Ecotourism • Lodging • Hotels • Motels • Meetings, Conventions, and Expositions • Restaurants • Managed services • Recreation • Attractions • Gaming • Parks • Recreation
- 9. Figure 1-1 Scopeof the Hospitality-TourismIndustry
- 10. The objectives of hospitality industry 1. Making the guests feel welcome personally This requires both a friendly manner on your part toward the guest and an atmosphere of “liberality and good will” among the people who work with you in serving the guest. That often translates to an organization in which workers get along well with one another. 2. Making things work for the guests Everything needs to be clean and in working order before the guests step foot on the establishment. A hospitality system requires a lot of work and the manager must see that it is done properly and maintained at all times. 3. Making sure that the operation will continue to provide service and meet its budget As a manager, the key to achieving this objective lies in achieving a controlled profitable operation. A good term to describe this management concern is “conformance to budget.”
- 12. CHARACTERISTICSOF THE HOSPITALITY INDUSTRY Topic 1 Overview of the Hospitality Industry
- 13. 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
- 14. Characteristics of the Hospitality Industry 1. The physical products of hospitality, e.g. food and drink in a restaurant or the actual hotel room, are products that are sold at a price to the guests or customers (e.g. the price a guest paid for renting a hotel room, or the price a customer paid for buying a meal in a restaurant). 2. These are often regarded as the tangible aspects of hospitality 1. The qualities of staff and the way they deliver the service are often more important than the tangible products in making a hospitality experience satisfactory or unsatisfactory or these are the intangible aspects of hospitality 2. Inseparability of Production and Consumption
- 15. SERVICE-THEMISSIONAND PRODUCTOF HOSPITALITY Topic 1 Overview of the Hospitality Industry
- 16. Business Structures •Two basic structures •Single Unit •Multiple Units
- 17. Single Unit • Single unit business: business that only has one location and one unit (Also called an independent business) • Not part of any other business • Owner is responsible for all the business decisions • Make decisions about décor, recipes, staff, how much to charge, etc.
- 18. Multiple Unit •Multiple Unit Business: business that consists of more than one unit or more than one location •2 Structures • Chain • Franchise
- 19. Chain • Chain: business that has more than one location under the same name and ownership • Example: Olive Garden (owned by Darden Restaurants, Inc.) • Darden decides on décor, menu items, prices, and even what servers will wear • Most important aspect of a chain is the brand • Brand: name, logo, tagline, or any combination of these that distinguishes a product from its competitors (association)
- 20. Franchise • Franchise: the right to do business using the brand and products of another business • Franchise is actually part of a chain • Chain owner can give the outside person the right to use the chain’s name and sell the chain’s products • Franchise Agreement: legal document that sets up a franchise. It includes the rules and standards that the outside person must follow in running the franchise • Franchise Fee: Amount of money the outside person pays the chain owner • Franchisor: The person who owns the chain • Franchisee: The person who busy the rights to use the brand
- 21. CORPORATE PHILOSOPHY Topic 1 Overview of the Hospitality Industry
- 22. Corporate Culture •Culture: • Overall style and feel of the company •Mission statement: • Central purposes, strategies, and values
- 23. A Cup of Kindness • Customer service is a central focus of hospitality • Our job is to enhance the lives of those people (guests, customers, passengers, etc.) to whom we serve • We begin by understanding what they need • Kindness is demonstrated by making everyone feel welcome • Quality customer service requires that we make all guests feel comfortable • We all have a need to feel important
- 24. Moments of Truth • Term created by Jan Carlson – Scandinavian Airlines System • These are guest encounters • Every hospitality organization has thousands of moments of truth every day • Some of them include: • A guest calls the restaurant for a table reservation • A server takes an order • A server brings the check • A guest departs the restaurant
- 26. The Disney Approach to Guest Service • The Disney mission statement is simple: “We create happiness.” • The key elements of Disneyland guest services include: • Hiring, developing, and retaining the right people • Understanding their product and the meaning of the brand • Communicating the traditions and standards of service to all cast members • Training leaders to be service coaches • Measuring guest satisfaction • Recognizing and rewarding performance
- 27. Disney Service Model • Smile • Make Eye contact • Respect and welcome all guests • Value the magic • Initiate guest contact • Creative service solutions • End with a “thank you”
- 28. “Seven Deadly Sins of Service” 1. Apathy 2. Brush-off 3. Coldness 4. Condescension 5. Robotics 6. Rule book 7. Runaround
- 29. CAREER DIRECTION IN THE HOSPITALITY INDUSTRY Topic 1 Overview of the Hospitality Industry
- 30. Size & Economic Impact • Travel & Tourism is the world’s largest industry • Expected to group by 4% each year through 2019 • Has a major impact on national economies around the world • More than 18 million people in the US work in the hospitality industry • It is the second largest employer (health care is 1st) • Hospitality generates more than $1 trillion each year in the US • Whenever people travel, they spend money • Federal, state, and local government collect taxes on many hospitality purchases • Major impact on countries
- 31. Diversity • Diverse: made of elements that are different from each other • Many businesses in the hospitality industry are different from other businesses • Think about when you used the hospitality industry • People who work in the industry are also different
- 32. Complexity • Term used to describe the hospitality industry • Complex: made of 2 or more parts • Some of the parts are complex in that they cannot be separated from one another
- 33. Hospitality Spirit • Works to create memories • Everyday guests rely on us for service • Passion is in the service element • People with a service spirit are happy to do something extra to make the guest’s experience memorable
- 34. Service, Service, Service! • Service is defined as “the act or means of serving” • To serve is to “provide goods and services for” and “be of assistance to” • It is critical to give our guests exceptional service each encounter • The hospitality industry can be a good choice for entrepreneurs who prefer to do their own thing (i.e., a bar, catering company, event management, restaurant, tour guide, night club, wedding planner, etc.)
- 36. Conclusion A business approach toward hospitality industry: - be able to communicate with customers in the hospitality environment; - develop positive image and organisational reputation; - contribute to good customer service; - avoid misunderstandings and complaints; - follow organisational standards for personal presentation, etc.
- 37. Welcome future leaders! •Hospitality industry is an exciting place to be: •It’s fascinating •It’s fun •It offers competitive pay •It offers advancement opportunities