Quality Service Management in Hospitality and Tourism Industry

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Concepts of Tourism and Hospitality Industry

Module 2 Concepts of Tourism and Hospitality

Industry

Course Learning Outcomes:

1. To define the industry of tourism and hospitality and its relationships;
2. To describe the concepts of products, goods and services of tourism and
hospitality industry;
3. To explain the concept of tourism and hospitality products and services

WHAT ARE TOURISM AND HOSPITALITY INDUSTRY?

Tourism Industry:
Tourism is defined as an activity of people that requires travel and stay in a destination
outside their residence, for the reason of relaxation, business, family purposes and many other
purposes as long as they will not stay for more than one year.
Moreover, tourism is an active and competitive industry that involves adapting regularly to
customers’ changing needs and wants, as the customer’s satisfaction, safety and enjoyment are
particularly the focus of tourism business.
Based on the different definition given about tourism, here are the following characteristics
identified:
1. There are two main elements in tourism
a. The movement- this pertain to the journey or travel of a person from the
place of origin to the point of the destination.
b. The overnight stays- this pertains to not permanently staying in the visited
destination.
2. The temporary movement of a person in their place of origin to the visited
destination, without the intention of staying longer and has the intention to return
in their place of origin.
3. There are purposes why a person is visiting a destination, however permanent
residence and employment is not included.
4. The kind or type activities that tourists are doing in the place visited is also one of
the characteristics of tourism.
There are also four groups identified that are involved and influenced by tourism
1. Tourists
2. Business providing goods and services
3. Government of the host community

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4. Host community

Tourism are made from different kinds or goods and services, generally tourism are
fragmented. Tourism goods and services that are offered to the tourists includes, transportation,
accommodation, attractions, amenities, catering, entertainment, eating and drinking
establishments, shops, activity facilities and many others.
Tourism is also considered as a wide ranging industry, the tourist demand for tourism
products will benefit the destinations economy and could give people millions of job. There are no
other industry that links and provides different products and services from different sectors.
Tourism is multidimensional. The industry of tourism embraces the different aspects of the
human life and society. Tourism provide economic activities that different business sectors are
involve in order to provide the tourists needs. Also, it is a major sociocultural activity that markets
different cultural experiences to its tourists. Tourism involves a historical analysis of tourism
activities and various institutions.
There is a strong link between travel and tourism. If you refer to travel, it is simple
movement of people and the only activity in travel is the trips of people outside the place of
residence for any purpose, except as a daily routine when going to work.

Tourism products and services:

1. Tourism Oriented Products (TOP)- These are the products and services created primarily for
the tourists and also for the locals. These products need a great share of investments in private
sector. A few of them are :
• Accommodations; For example, Taj, ITC Hotels.
• Transportation; For example, Owning taxis, luxury buses, and boats.
• Retail Travel Agents
• Tour Operators
• Shopping Centers such as malls
• Cinema Theatres such as PVR
• Restaurants for Food and Beverages
• Tourism Information Centers
• Souvenirs Outlets
• Museums, Temples, Gardens, and Theme parks

2. Residents Oriented Products (ROP) - Here, the products and services are created mainly for
the local residents staying at a particular tourist destination. This category requires
investment in public sectors more. Some of them are −
• Hospitals
• Public Parks
• Banks and ATMs
• Petrol Pumps

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• Postal Service

3. Intangible Products of Tourism

• Bookings of accommodations, theatres, and at various sites.
• Tourists’ experience by visiting a destination, eating at a restaurant, or performing an activity.
• Tourists’ memory which is created by storing the details of events and experience on the tour.
The high degree of satisfaction or dissatisfaction is often stored as a long term memory.
• Transportation of tourists and their luggage from one place to another.

4. Reservations- The tour operator is responsible for making reservations for special events or
activities the tourists are interested in. At some places, the reservations are required to be
done well in advance to avoid last minute hassles. The events or activities such as a music
concert or a theatre show, visiting a theme park or a zoo, require people to secure seats or
avail entry with prior reservations.
5. Guided Tours- The tour operators can arrange guided tours. Some qualified staff who can get
access to the place, explain the importance of the place, support, and guide the participants
through the entire visit. The guide is arranged to accompany the tour participants as a part of
tour.
6. Transport Facilities- These facilities are for travelling from one place to another.
• Surface Transport − It includes support of transport by road or water.
• Air Transport − this is the support of transport by air, generally given for long
distance travel. Many times the tours include a halt of a couple of hours at transit
destinations. Today the airports are built and maintained as engaging tourist
terminals by providing amenities such as spas, lounges, food joints, bars, and book
shops, retail shops for selling authentic local food, clothes, and souvenirs.
• Today the Airlines are no more backstage when it comes to caring for their
customers. They offer loyalty programs to their customers under Frequent Flyer
Program to encourage the customers to travel more and accumulate points and
redeem them against travel or rewards.

Hospitality Industry:
The hospitality industry is concerned in providing the guests’ accommodation and foods
and beverages services needed in a visited place or area. Also, hospitality industry pertains on
how a guests are treated by the service providers, and is concerning in the guests well-being and
satisfaction. However, tourists are not only the consumers of hospitality industry, local residents
can also be one of the consumer.
Moreover, the hospitality industry is accountable in providing food and beverages and
accommodations in the destinations or area.

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Another definition that was given in hospitality industry, is that it refers to any businesses
and services that links leisure activities to customer satisfaction. Also, it focusses in luxury,
pleasure, enjoyment and experiences as opposed to catering for necessities and essentials.
The products and services within the hospitality industry, below are the lists:
1. Accommodation- providing customers or guest a comfortable place to stay for a
temporary basis only. It is associated in tourism industry, where tourists who travel
for vacation looks for an accommodation that can stay for a short period of time.
a. Bed and Breakfasts- this a type of accommodation where properly owners
live in the same property and offers an overnight stay and breakfast. But
guests are provided with private room and bathroom.
b. Hotels- this requires not just an overnight stay but more nights to stay.
Hotels do not just offer accommodation but also provide different services
like room service, housekeeping and facilities for eating and drinking
c. Motels- this is an accommodation designed for motorists who needs to rest
and stay for an overnight period.
d. Resorts- like hotels, resorts also provide different services. However, resorts
provide wide range of facilities, amenities and activities for their guests.
e. Serviced Apartments- like hotels also, it provides different services for its
guests. But serviced apartments has a larger space for the guests and are
fully furnished, it contains kitchen, laundry and cleaning.
f. Time Sharing- this type of accommodation is wherein you share the room or
accommodation with other users.
2. Food & Drinks- this is an important part of the hospitality industry. It offers one of
the needs of the guests to fulfill with. Foods and drinks sector caters to a wide range
of customers, including tourists. Local, ex-pats and passers-by.
a. Restaurants- foods and drinks offered in the establishment could be eaten
inside or take away. Restaurants could include fine dining restaurants,
takeaway restaurants, fast food restaurants and other type of restaurants.
b. Catering- the food and beverages services are being provided in the place or
area where the customers wish to put.
c. Bars & Cafes- an option for guests to go out, socialize and enjoy foods and
drinks. This kind of food and drinks providers usually offers coffee, tea and
light snacks and bars offers alcoholic drinks and soft drinks.
d. Tea & Coffee Shops- like cafes they also provide varieties of tea and coffee
and is being located in larger establishments like balls and hotels.
3. Travel and Tourism- this are closely related to hospitality industry because they
offer the same products and services to the customers, providing that they will
satisfy the needs and wants of their consumers.
a. Travel Agents- their main duty is to sell travel products to customers on
behalf of the suppliers.
b. Tour Operators- they provide combination of travel and tour products
usually called as tour package that are being sold to the customers.

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c. Online Travel Agencies- performs same tasks with travel agents but they
offer over the internet.
d. Cruises- this are cruise ships that offered for customers for leisure purpose.
Cruise ships offers almost all the products and services in the hospitality and
tourism industry.
e. Car rental- a short term access to a car are being offered to guests.
f. Casinos- an entertainment establishments for customers who wants to play
gambling.
The difference between the tourism and hospitality Industry
On a basic level, tourism industry are concerned in providing services to the people who
travels away from their usually place of residence for a short period of time. Meanwhile,
hospitality industry are concerned with services related to leisure and customer satisfaction. It
means that hospitality service providers offers the services for the tourists but can also include
serving people that are not tourists, such as locals.

WHAT ARE PRODUCTS, GOODS AND SERVICES?

The goods and services are described as products. Tangible products are referred to as
goods and intangible products are referred to services. However, products could also a mixture of
both tangible and intangible services most especially in tourism and hospitality industry.
There are four distinct categories of products according to Kotler:
1. Purely tangible goods- implies that no element of intangible service is offered with
the good the customer receives.
2. Tangible goods with accompanying tangible services-
3. A major intangible service with accompanying tangible goods- services tend to be
more intangible than manufactured products; manufactured products tend to be
more tangible than services
4. A pure intangible service- implies that there is no element of physical goods in the
service offered.
Service is defined as “an activity or benefit one party can offer to another that is essentially
intangible and does not result in the ownership of anything. Production may or may not be tied to
a physical product” (Kotler et. al 1998). Also, service is defined as the interaction between the
customer and the firm or customer and service provider.
The interaction between services provider and customer can be divided into three primary
categories according to Mills (1986);
1. A simple nature and is characterize by little uncertainty in transactions;
2. A greater risk in transactions and depends upon the service providers for information and
expertise and is, consequently, an intense interaction between the service provider and the
customer;

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3. A very intense interaction between the provider and the customer, the performance of the
service providers, and their competence and personality.

References and Supplementary Materials

Books and Journals
1. Jay Kandampully, Connie Mok & Beverley Sparks; (2015); Service Quality
Management in Hospitality, Tourism and Leisure; New York; The Haworth Hospitality
2. Sudhir Andrews; (2008); Tourism & Hospitality Industry; North America; McGraw-
Hill Companies.
Online Supplementary Reading Materials
1. What is tourism?; https://www.go2hr.ca/getting-know-bcs-tourism-industry/what-
is-tourism ; 2019October07
2. Introduction to the hospitality industry;
https://en.wikiversity.org/wiki/Introduction_to_the_hospitality_industry;
2019Octobe07
3. Hospitality Industry Everything You Need to Know about Hospitality;
https://www.revfine.com/hospitality-industry/; 2019October07
4. Products and Services;
https://www.tutorialspoint.com/tourism_management/tourism_management_prod
ucts_and_services.htm ; 2019October08

Online Instructional Videos

1. Fundaments of Tourism & Hospitality;
https://www.youtube.com/watch?v=AwV1GheMEcM ; 08October2019

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