HTM Chapter 1
What is Hospitality?
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1-1 Define hospitality.
1-2 Describe the origins of the hospitality and
tourism industry and explain how it has changed
over time.
Objectives
1-3 Describe the size and scope of the hospitality
and tourism industry and its role as a major
employer.
1-4 Explain the impact of the hospitality and
tourism industry on global, national, state, and
local economies.
1-5 Identify the sectors of the hospitality and
tourism industry and the types of businesses
operating in each sector.
1-6 Explain how businesses in various
hospitality and tourism sectors depend on one
Objective another for success.
s 1-7 Differentiate between franchises,
independent businesses, and managed
businesses.
1-8 Assess how technology and automation are
changing the hospitality and tourism industry.
• [Link]
00d695265/Ax/WeQ_oqYmIcP1RroS_ATWchCUTdAIXtzwwnupnDR0U/
chapter01_industry-sectors.mp4
Key Terms
Corporate social
Hospitality Sustainability Attractions sector Tourism responsibility
(CSR)
Accommodations Independent Destination
Interdependence Multiplier effect
sector business branding
Food and Transportation Managed
Franchise Multiculturalism
beverage sector sector business
Introduction
• Hospitality is about making people feel welcome
and appreciated.
• The word hospitality is derived from the Latin word
hospitalitem, meaning “friendliness to guests.” The word has
several meanings
• “Hospitality” as an industry is divided into several sectors,
including food and beverage, accommodations, travel,
recreation, and others.
• “Hospitality” as an action is bringing joy and happiness to
guests by being open-hearted and generous.
• “Hospitality” as a product is the meaningful, memorable,
authentic experience that guests receive.
• “Hospitality” as a spirit is a mindset. The spirit of hospitality
makes each experience unique and personalized. When you
are truly hospitable, it is displayed in your voice, your nod,
your eyes, your tone, and your smile.
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Hospitality
is..................
• an industry.
• an action.
• a product.
• a mindset.
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Knowledge check
• Define hospitality in your own words.
• How does a spirit of hospitality help you improve
a guest’s experience?
History
• Hospitality and tourism are
closely related.
• People have travelled for many
reasons.
• Ancient people also travelled for
recreation.
• Tourism is the practice of
traveling for recreation.
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History
• The Amber Road
spanned between Northern
and Southern Europe.
• The Silk Road
spanned between the East
(Asia) and the West (Europe).
• The Spice Route
spanned between
Northeastern Africa, Europe,
and Asia.
Putting it in
Practice
• People have long travelled
for religious reasons.
• Buddhists visit the birthplace of
Buddha in Nepal.
• Christians visit Jerusalem or the
Vatican in Rome.
• Muslims make a pilgrimage
to Mecca.
Development
of
Transportation
• Steamships
• Railroads
• Air-Balloons and blimps, airplane
Wright brothers . Charles
Lindbergh ,Military interests
during World War I and World
War II also focused on air travel.
• Automobiles-Henry Ford began
producing automobiles in 1908
Development
of Lodging
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• Stagecoaches
• Coaching inns
• Federal Highway Act-June 29, 1956, President
Dwight D. Eisenhower—inspired by his time on
the roads of Germany during World War II
• Vacation, holidays, and Holiday Inn-A vacation
was originally referred to as a “holiday,” and a
hotel was originally referred to as an “inn.”
This is how the Holiday Inn brand came to be.
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Technology
advancements
• Advancements in technology and
communications have affected the
hospitality industry.
• Technological advancements have led to
improvements in guest services.
• Examples include chatbots and mobile
check-in.
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Technology
• Facial recognition and biometrics used in place of
room keys or boarding passes
• Robots that provide room service, check guests in,
or carry luggage
• Chatbots and Artificial Intelligence (AI) that provide
customer service
• More efficient management of operations with the
This Photo by Unknown author is licensed under CC BY-ND. Internet of Things (IoT)
• Data analytics that helps managers gather
customer reviews or customer data
• Mobile check-in, ordering, and payment systems
• Videoconferencing in place of face-to-face
meetings
• Use of a mobile phone as a hotel key
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Knowledge
check
• What impact did the steam engine
have on the transportation
industry?
• List five means of travel in order of
when they were first used.
• Describe three changes in
hospitality technology.
Size and
impact
• U.S. travel:
• 71.2% of dollars are spent
domestically
• 28.8% of dollars are spent by
foreign travelers
• Worldwide travel:
• 78.5% leisure
• 21.5% business
• Hospitality and tourism supports
the economy.
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Employment
TOURISTS SPEND MONEY ON TRANSPORTATION,
MEALS, ACCOMMODATIONS, SHOPPING, AND ENTERTAINMENT.
Economi THESE DOLLARS SUPPORT STATE AND LOCAL TAX REVENUE.
c Impact
THE MULTIPLIER EFFECT-THE CALCULATION OF ADDITIONAL BENEFITS
REALIZED FROM TOURISM DOLLARS. FOR EXAMPLE, IF A GUEST SPENDS
$100 ON A HOTEL ROOM, $150 TO $200 IN INCREASED SPENDING
MIGHT RESULT. HOTEL EMPLOYEES WILL PURCHASE GOODS WITH THEIR
WAGES AND HOTEL LINEN SUPPLIERS WILL BUY CLEANING PRODUCTS
TO SUPPORT THEIR SERVICE. INCREASES ECONOMIC IMPACT.
Destination Branding
• Destination branding is the concept of promoting a city, state, or
specific destination to prospective travelers.
• Orlando, Florida, was originally a small town filled with orange
groves. In 1950, less than 100,000 people lived there. Today, it
calls itself “the theme park capital of the world.” Most everyone
would agree that it has plenty of them, including Walt Disney
World, Sea World, and Universal Orlando. These parks attract
nearly 70 million visitors to the area every year, keeping the
airport, restaurants, and hotels full. Huge tax revenues from the
parks help build the infrastructure and continue its growth. With
its mild winters and growing recreational options, Orlando has
established itself as a recognized destination brand with about 2
million residents and growing.
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Social
Impact
• Multiculturalism is the idea
that many cultures can
prosper together by
recognizing and celebrating
their differences.
• Hospitality professionals
must recognize cultural
differences.
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Cultural
Awareness
• Cultural awareness is being aware of the
differences among cultures and understanding
that people who come from different
backgrounds may have different attitudes and
values.
• Tips to being more culturally aware include being
open-minded, being flexible, treating all guest
requests equally, and not being dismissive.
Sustainability and
Environmental Impact
• Sustainability is the responsible long-term use of
Earth’s resources that meets the needs of the
present without compromising the needs of
future generations.
• Corporate social responsibility (CSR) refers to the
decisions and actions of large corporations that
can positively impact the community and
environment.
•.
Corporate Social
Responsibility
• Minimizing environmental impact
• Ensuring sustainability
• Attracting guests and retaining employees
• A recent report showed that over 86 percent of
business listed on the S&P Index actively engaged in CSR.
This has proved beneficial for all of the stakeholders
including customers because they often choose to
patronize corporations that focus on CSR. Customers
report that they feel good about their choice because it
helps to make a difference. The idea of corporations
being responsible citizens is definitely a win-win.
Knowledge check
How does travel and tourism directly
impact the economy?
Describe the concept of
multiculturalism.
How does the concept of sustainability
apply to the hospitality industry?
Industry
Sectores
and
Connectio
ns
Accomodation
s (Lodging)
• The accommodations
sector consists of all properties
that charge for overnight shelter
or stays. It is sometimes called
the lodging sector.
• There are 5.3 million guestrooms
in the U.S.
• The sector services 1.3 billion
room nights per year.
• There are 8.3 million jobs in the
sector.
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Food and
Beverage (F
& B)
• The food and beverage
sector includes companies
that process, package, prepare,
and serve food and beverages
to guests.
• Food services can be
• on premise (restaurants).
• off premise (catering).
• This sector covers a range of
offerings.
Transportati
on
• The transportation
sector includes all methods of
movement of people including
air, railways, roadways, water,
or combination thereof.
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Attractions
(Entertainme
nt)
• The attractions
sector incudes places or activities
of interest that people want to
visit:
• Performances
• Cities
• Natural land features
• Historical sites
Working
Together
• Interdependence is a state that
occurs when two or more things
depend on each other.
• The hospitality sectors are
interdependent.
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Business
Categories
• Independent business
• Franchise
• Managed business
Independent
• An independent business is
owned and operated by
the owner.
• These businesses are referred to
as privately owned.
• They are sometimes called
“mom and pop” businesses.
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Franchise
• A franchise is a business that owners buy into with a
proven, standardized system of operation.
• Franchises pay an initial franchise fee and royalty fees.
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tHilton Garden Inn
• Bar Louie
Homewood Suites by
• Chipotle Hilton
• Dunkin La Quinta
• McDonald’s Ramada
• Papa John’s Red Roof Inn
• Subway Spring Hill Suites
• Taco Bell Wyndham Hotels & Resorts
• Wendy’s
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Managed Property
• A managed business is owned by a group or an individual who is not
part of the normal day-to-day business operations.
• The owner hires a company to manage and run the business.
• The advantages of this model are that the management company
has the necessary skills and knowledge, access to business systems,
and, sometimes, a brand name to make the business a successful
This Photo by Unknown author is licensed under CC BY-SA. one. On the other hand, owners don’t really have a say in how the
business is run. What happens if the management company doesn’t
do a good job?
• Four Seasons Hotels & Resorts
• Hilton Hotels & Resorts
• Hyatt Hotels Corporation
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• Lowes’ Hotels
• Marriott International
• Salamander Hotels & Resorts
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Knowledge check
• What are four examples of businesses in
the transportation sector?
• Explain how three or more sectors of the
hospitality and tourism industry might be
interdependent upon each other at an event.
• Explain why someone interested in opening
a restaurant might explore the possibility of
a franchise.
Future
• New ideas, technologies, and
processes are changing the
guest experience.
• Examples include mobile check-in
and guest profiles.
• Technology can improve lodging,
food and beverage, events, and
more.
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Impact of Technology
• Property management systems
(PMSs)
• Paperless operations
• Continued improvements in
efficiency and productivity
• Increased guest options
• Don’t forget the human touch
• Technology in the hospitality and
tourism industry should do the
following:
• Give guests more control of
choices and options
• Make information readily available This Photo by Unknown author is licensed under CC BY-NC-ND.
• Reduce labor
• Reduce costs
Knowledge Check
List and briefly discuss three examples of What is the high-tech vs. high-touch dilemma?
how automation benefits the hospitality and
tourism industry.
• Hospitality includes welcoming guests, providing service and generosity, making guests feel comfortable, and meeting guests’ needs.
• The Industrial Revolution led to the development of steamships and railroads, and later to airplanes, automobiles, and highways to transport raw materials and finished goods.
• Advancements in technology and communication have changed the industry over time.
• The hospitality and tourism industry contributes to the economy by providing consumables, supporting other industries, and providing revenues from expenditures.
• In the U.S. alone, approximately 17 million people work in the hospitality and tourism industry.
• Multiculturalism is the idea that many cultures can prosper together by recognizing and celebrating their differences.
• Businesses that practice sustainability do their best to avoid using up natural resources.
• The different sectors in the industry include accommodations, food and beverage, transportation, and attractions.
• Businesses in various hospitality and tourism sectors depend on each other in many ways as they are often interdependent.
• The three types of ownership within the hospitality and tourism sector include franchises, independent businesses, and managed businesses.
• Technology and automation are changing the industry by reducing the amount of unskilled work and increasing the demand for skilled work.
