The World of Hospitality

Hospitality and Tourism

Lesson 2

What is Hospitality?

Comes from latin word HOSPES - host or guest.

Meeting the needs of guests with kindness and goodwill.

The hospitality industry provides services to people away from home. These services include food, lodging, recreation, and travel.

Service is the heart of this industry - guests must feel good, safe, and happy.

Size and Economic Impact

The largest industry which is rapidly growing.

It is expected to grow by 4% each year through 2019.

In the US, more than 18 million people work in the hospitality industry, being the second largest employer (healthcare is the first).

Servers, chefs, travel agents, room attendants, hotel managers, meeting planners, restaurant managers, tour operators, convention and visitor bureau workers, theme park and national park employees, and catering directors.

Size and Economic Impact cont.

Generates more than $1 trillion a year!

International travel gives us $100 billion direct to this industry.

Each visitor spends an average $1,967 per visit:

28% lodging ($550)

18% foodservice ($354)

10% entertainment ($196)

30% retail (clothes, souvenirs) ($590)

13% local transportation ($255)

Size and Economic Impact cont.

Taxes also make a large contribution - $105 billion in revenue.

Diversity

Diverse - Made of elements that are different from each other.

[diagram 1-3]

Complexity

Hospitality is broken down into four segments: Food and Beverage, Lodging, Recreation, Travel and Tourism.

[diagram 1-6]

Food and Beverage

Hotdog stand (small) to Mcdonalds (one of the largest businesses in the world).

Can be located in other businesses such as movie theatres, hotels, airports, malls, etc.

Cafeterias in schools and hospitals are also a part of this industry.

These businesses provide nearly 76% of the meals eaten in the US today.

Employes 11 million people, and is expected to double by 2015.

Lodging

Lodging Properties provide overnight accommodations.

Vary from budget motels to expensive hotels.

A bed-and-breakfast in a private home is also apart of this industry.

Prices vary on services (high end pampers, lower scale focuses on cheap prices).

There are more than 4 million guest rooms in approximately 60,000 different facilities throughout the United States. There are about 13 million rooms world wide.

Recreation

Provide activities for rest, relaxation, and enjoyment.

Broken down into four groups: entertainment, attractions, spectator sports, and participatory sports.

The National Park system of the US is part of the recreation industry. It provides 390 recreational sites.

[diagram 1-14]

Travel and Tourism

Travel: trains, car services, planes, and ships.

Tourism: travel agencies, tour operators, cruise companies, meeting and convention planners.

Packages may include both these categories.

Pleasure Travel

Rest and relaxation.

Secondary item in life (bills, food, clothing, shelter come first).

Typically lasts for a weekend and is done more frequently than in the past 50 years (two week vacations with family or friends not very often).

346 million pleasure trips a year.

Usually last 3.7 nights per trip and are traveled mostly by automobile, truck, or RV.

Business Travel

Done as a part of the job. Employers pay the bills, but decide where the employees stay, and where they go.

Considered the “meat and potatoes” of the industry. This is because these travelers typically spend more per trip.

Also is beneficial to the industry because the business travelers keep traveling when times get bad. If your family is low on cash during spring break, you don’t go to Disneyland. Sorry.

Business Travel cont.

Business persons take about 210 million trips a year.

Average 3 nights per trip and stay in hotels.

They average about 1,022 miles per trip.

60% of business travelers travel by car, and 38% travel by air.

18% combine their business trips with a vacation.

30% of business travelers are female.

Working Together

Expedia, Hotels.com, Travelocity, Priceline offer packages.

Hotels (Westin, Hyatt, Holiday Inn), airlines (Southwest, Horizon, Alaska), car rental operations (Hertz, Enterprise) all reserve a certain amount of vehicles or rooms or airplane seats for each travel agency they work with.

Herman Cain

Who was he?

1945: Born and raised in Atlanta, Georgia.

1950’s: First job as a dishwasher during high school.

1967: BS degree from Morehouse College.

1971: MA degree in computer science from Purdue University (that’s an ivy league school!).

1982: Left a VP job for an entry level job at Burger King; nine months later he became regional VP of Burger King Corporation.

Herman Cain cont.

1986: Became president of Godfather’s Pizza.

1988: Chief executive officer and co-owner of Godfather’s Pizza, Inc.

1996: Founder and chief executive officer of T.H.E., Inc., a leadership consulting company.

2004: Ran for U.S. Senate in Georgia.

2007: Host of “The Herman Cain Show” in Atlanta.

Homework!

Key terms Sheet - you may look them up on the internet and refer to your sheet for the best definition. Due next Monday!

We will have a mini lesson later this week. More worksheets to follow so plan accordingly.