An

overview
of the
Hotel
Industry
Restaurant
Kien Giang University
Prepared by: Lecturer Ms. Mira Cruz Artus
1.1 AN OVERVIEW OF THE HOTEL INDUSTRY RESTAURANT

The hotel industry is any types or forms of business relating to

the provision of accommodation in lodging, food and drinks and
various types of other services that are interconnected and
which are intended for public service, both of which use the
lodging facilities or who simply use the services or the
production of certain of the hotel.

Hotels offer enormous range of guests’ services such as

banqueting, conference and fitness, sport and facilities, beauty
spas, bars, sophisticated restaurant, casinos, night clubs and
casinos. The Hotel sector consists of more than 15% of all the
people who worked in the hospitality sector. Hotels falls into a
number of different categories which includes the glamorous
five-star resort international luxury chains, trendy boutiques,
country house, conference, leisure or guest houses. Many are
owner run which offer personalized service to guests. This very
dynamic sector offers good quality accommodation, great
variety of food and beverage, together with other services for all
types of customers.

With offering every kind of accommodation catering for every

type of taste, the hotel sector is undeniably constantly growing
and evolving, while refining its offering, improving its
experience and creating new products to serve and satisfy
customer on a local and global level. The hotel sector is always
striving to offer excellent customer service throughout its
operations.

History of the Hotel Industry

The history of the hospitality industry dates all the way back to
the Colonial Period in the late 1700s. The hotel industry has
been the subject of important development and growth over the
years as it has faced World Wars, The Depression and various
social changes. However, the hotel industry as seen today
takes form in the early 1950s and 60s, leading the way for
growth in to the dynamic industry. This had led to more and
more people traveling not only for business but also for leisure
reasons, leading to the development which can be seen
nowadays.

The idea of renting an accommodation to visitors appeared

since ancient times, and the modern concept of a hotel as we
know derives from 1794, when the City Hotel opened in New
York City; the City Hotel was claimed to be the first building
designed exclusively to hotel operations. The City hotel back
then possessed 73 rooms and offered different types of service.
Similar operations soon appeared in such nearby cities as
Baltimore, Boston in 1809 and Philadelphia.

The industrial revolution, which started in the 1760s, facilitated

the construction of hotels everywhere, in mainland Europe, in
England and in America.

The advent of new ways of transportations, hotels and resorts

outside of major cities were built in the countryside and began
promoting their scenery and other attractions. The concept of
the vacation was developed and available to more and more of
the population. In the 1920’s, hotel building entered a boom
phase and many famous hotels were opened,

From there a surge of hotels flooded American and the rest of

the world with prominent names such as Radisson, Marriot,
Hilton and more others.

Organizations representing hotels worldwide

The growth and expansion of the Tourism industry all over the
world have been beyond expectation, whereby this have
generated billions for recipient countries, hence making the
tourism industry one of the most successful sector in
international trade in services, while being for some economies
their major exports. However, the hotel industry is a very
dynamic sector which often faced economically difficult times
reason why there has been the creation of several world
organizations to monitor progress, promote and developed
sustainable tourism in the hotel industry. The following are
some of the world leading organizations representing the
tourism and travel, and hotel industry throughout the world:

i) World Tourism Organization (UNWTO)

The (UNWTO) is one of the United Nations agencies, which is

accountable for the advancement of responsible and
sustainable tourism. Being the Word leading organization in the
tourism sector, UNWTO promotes tourism as a mean for
economic growth, development and environmental
sustainability and offers the monitoring and assistance to the
sector in advancing knowledge and tourism policies worldwide.

The UNWTO also encourages the implementation of the Global

Code of Ethics for Tourism, to maximize tourism’s socio-
economic contribution, and is committed to promoting tourism
as a tool in achieving the United Nations Millennium
Development Goals (MDGs), which aims is towards poverty
alleviation and encouraging sustainable development.
Moreover, the UNWTO plays also major roles in creating
market knowledge, promotes competitive and sustainable
tourism policies and instruments, fosters tourism education and
training

ii) International Hotel & Restaurant Association (IHRA)

The IHRA is an international trade association representing the

interests of the hotel and restaurant industries. IH&RA
members are national hotel and restaurant associations
throughout the world, and international and national hotel and
restaurant chains representing some 50 brands. Officially
recognized by the United Nations, IH&RA monitors international
agencies on behalf of the industry, estimated to comprise
300,000 hotels and 8 million restaurants, employs 60 million
people and contributes 950 billion USD annually to the global
economy.
iii) HSMAI – Hospitality Sales & Marketing Association
International

The Hospitality Sales & Marketing Association International is

the largest international association of travel sales and
marketing professionals. The association have over 4,000
members from different travel and tourism organizations
including hotels, resorts, airlines, cruise lines, car rental
agencies, and others in 31 countries worldwide, with the
purpose of improving sales and marketing, education and
management skills in the hospitality organizations worldwide.

iv) The World Travel & Tourism Council (WTTC)

The World Travel & Tourism Council is the global authority on

the economic and social contribution of Travel & Tourism. It
promotes sustainable growth for the industry, working with
governments and international institutions to create jobs, to
drive exports and to generate prosperity. It is the only body
representing the private sector in all parts of the Travel &
Tourism industry worldwide. The WTTC activities attempt to
settle the Travel & Tourism industry’s private and public sector
affairs in order to bring forward sustainable change.

Growth of Hotel Industry Worldwide

The rise in levels of income and standard of living but also

coupled with an increase in leisure time has been especially
beneficial to the tourism industry. The advent of technological
progress particularly through higher capacity cruise ships and
aircrafts, computerized reservation systems, better road
transport facilities have played key roles in the global growth of
hotel industry. Moreover, enhanced productivity have been
favorable to the industry by helping to cut costs and making
travel and tourism products more affordable without ignoring
the fact that travel and tourism is now more safe and
secure despite the terrorist attack which threatens the industry.
As competition in the industry increases worldwide, the
customers have reap great benefits in terms of lower
prices coupled from a wider choice as the organizations have
to differentiate their products from the crowd to appeal to
specific market segments but also strive to enhance the quality
of their services. More and more innovative approaches to
marketing and promotion and creation of new products are
pulling the demand to the destinations. The governments as a
facilitator, fund provider and legislator have also had played its
part on the development of the industry. New consumer needs
and attitudes have also fueled the growth of specific segments
for instance ecotourism is booming. One other factor but not
the least is the increased level of economic activity which has
led to an increase in business travel and also the growing trend
of international mobility.

Despite global economic challenges, hotel developments

continue to progress, with new rooms injected into global
supply by both independent hotels and group.

Statistics

According to the UN World Tourism Organization, the number

of international tourist arrivals worldwide was at only 25 million
in 1950 is now set to reach 1 billion in 2012 and 1.8 billion by
2020

In an update of forecasts made at the beginning of the year, the

World Travel & Tourism Council (WTTC) predicts growth for the
Travel & Tourism globally of 2.7%, only slightly downgraded
from the 2.8% that was expected for the industry at the
beginning of the year.

The main reasons for the adverse trends are that WTTC
expects world GDP growth to be 2.3% in 2012; down 0.2%
from the beginning of the year.

The trend for Travel & Tourism figures has been positive for the
beginning of 2012 and has surpassed expectations from the
start of the year. International tourist arrivals have grown 4.9%
in the year from January to June, airline passenger traffic is up
6.8%, and hotel occupancy rates are up in many markets.

In 2011 Travel & Tourism accounted for 255 million jobs

globally generating 9 per cent of world GDP while generating
billions for host economies; explaining why the sector is a key
driver for investment and economic growth.

According to statistics from the World Tourism Organization

(WTO), in 2008 an estimated 924 million international tourist
arrivals, an increase of 1.76% compared to 2007. According to
statistics from the World Tourism Organization (WTO), in 2008
international tourist arrivals amounted to 917 million visitors,
representing an increase of 1.76% compared to 2007. In 2009,
international tourist arrivals fell to 882 million, representing a
worldwide decline of 4.4% over 2008.

The worldwide destinations recorded a total of 600 million

arrivals, International tourist arrivals in the whole world fell by
7% between January and August 2009, but the rate of decline
has eased in recent months. These results and recent
economic data, confirms UNWTO’s initial forecast a 5%
decrease in international tourist arrivals during the year 2009.
Specifically, the global tourism in 2011 grew by 4.4 per cent,
reaching $980 million international tourist arrivals. And the
forecast for 2012 has just started, UNWTO expects grow that a
somewhat lower rate, but allows to reach 1,000 million
international tourists.

Hotel and restaurant managers improve the profitability of their

businesses by ensuring quality control and a pleasant
experience for their customers. They work with employees to
provide a smoothly functioning system within the hotel or
restaurant. Managers must have supervisory, administrative
and marketing skills, and must have a thorough understanding
of finance management to operate the business effectively.
Managers within both hotels and restaurants administrate and
organize the establishments in a way to generate the most
revenue possible. They delegate tasks and responsibilities to
employees, creating high function and easy operation within the
business. A hotel or restaurant manager knows how to keep a
customer happy and keep them returning to their establishment
by creating a pleasant experience for all who visit. They know
how to assess the financial outlook of the business by
managing inventory and having a thorough knowledge of credit
services, accounting, payroll and other financial workings. They
also have an understanding of the marketing needs of the
company.

Hotel managers require a high school diploma. Most large

hotels and lodges insist on a college degree in hotel
management from an accredited institution, which usually
requires an internship before obtaining the degree. Many hotel
chains provide a management training program that lasts for up
to three years.

Most restaurant employers require a high school diploma for

managers. For more established, high-end restaurants, many
employers ask for a bachelor's degree in either business
administration or restaurant management.

Hotel management is a competitive career, though the outlook

for employment in this industry is rapidly growing. There are
opportunities for advancement within corporate or chain hotels.
Sales managers and hotel controllers are often promoted to
general management positions.

The restaurant industry is growing at a fast pace, opening up

many management positions. Most managers advance in their
careers by transferring to a larger restaurant that offers higher
pay or by opening their own restaurant.

Hotels generally provide pleasant working conditions; however,

management positions in a hotel can be demanding, requiring
patience and the ability to handle high-stress situations. Keep
in mind that many lodges and hotels are seasonal, so in an off-
season, managers may need to find other seasonal
employment.

Restaurant managers have a job that is often physically

demanding and stressful. They must be able to stand on their
feet for many hours at a time and handle the constant taxing of
the food service industry. Managers need to be personable and
understand how to deal with disgruntled customers.

In 2004, the U.S. Bureau of Labor Statistics reported the

average salary for hotel managers to be $39,100 a year. Some
large establishments reported an annual salary of $80,000 a
year or more. Many hotels and lodges provide the discounted
use of their facility, meal plans, health insurance and other
benefits.

Restaurants in large cities provide the highest paid salaries to

managers. The U.S. Bureau of Labor Statistics in 2004
reported the average annual salary of restaurant managers to
be upward of $41,490, and many restaurants include yearly
bonuses ranging from $2,000 to $10,000 a year as well as free
meals when working. If the restaurant is large, managers can
expect a full range of benefits, including health insurance and
paid vacation.

Sample case study:

McDonald's Careers
Charlie Higgins
Updated September 26, 2017

Founded in 1955 by Ray Kroc, McDonald’s is the world’s

largest fast food restaurant chain, providing jobs for more than
1.7 million employees in over 32,000 McDonald’s restaurants
worldwide. Many successful McDonald’s employees began
their careers behind the counter, working their way up through
the ranks to become regional managers and other higher-level
employees. Many young people depend on McDonald’s for
reliable part-time work as they save money for school and other
endeavors.

Crew

Job applicants seeking entry-level employment at McDonald’s

usually start off on the restaurant crew. Crew employees
prepare and serve food, manage the drive-through window,
clean the kitchen and dining areas, change the soda fountain
syrups and perform other such duties. Depending on the state
you work in, most McDonald’s pay around $7.25 an hour for a
starting crew wage. Crew positions are available at nearly any
McDonald’s restaurant in the world. Advancement within the
company is possible given outstanding job performance and
long-term commitment.

Manager

Managers oversee all operations at McDonald’s restaurants to

ensure employee safety and maintain the company’s standards
of customer service. Managers often begin working behind the
counter and work their way up to management positions over
time. Managers generally need at least two years experience
working in management in a retail, hospitality or restaurant
setting. Experienced, qualified managers can make over
$30,000 a year.

Franchise Owner

Franchise owners are private investors who buy the rights to

open their own McDonald’s restaurants that serve all the same
menu items as restaurants owned by the corporation. As of
2010, there were 12,392 McDonald’s franchises in the United
States alone. Earning are highly variable among franchise
owners. According to McDonald’s website, “Profitability
depends on many factors including operating and occupancy
costs, financing terms and most important, your ability to
operate the business effectively.”

Corporate Careers

Working in McDonald’s restaurants is just one side of the

massive community of McDonald’s employees. Corporate jobs
at McDonald’s include positions in marketing, engineering,
business development, construction, product development,
supply chain management, legal services, operations,
insurance, information technology and many other areas.
These jobs are not as numerous as restaurant jobs but tend to
be more lucrative. Higher education is often a prerequisite for
employment in the corporate sector. McDonald’s frequently
posts jobs in these areas on its website (see "Resources").
An
overview
of
Hotel
Restaurants
management
KIEN GIANG UNIVERSITY
PREPARED BY: Ms. Mira Cruz Artus
Hotel and restaurant management is all about managing a
business in the hospitality industry that provides high-quality
customer service. Learn more associate's degree programs
in hotel and restaurant management, as well as future career
options.

What is Bachelor of Science in Hotel and Restaurant

Management?

BS HRM is a four-year degree course that equips students with

the knowledge and skills needed to be successful in
the hospitality industry.
Hotel Management System
HMS is a type of properly management system that facilitates
the management of hotel operations and functions; main
operations such as front office, sales, planning, and accounting.
So, what is the Hospitality industry? First, it is important to
define what we mean by the hospitality industry. After all, it is a
broad field and while most people have a basic idea of the
types of businesses that count as hospitality brands, a far
smaller number are able to provide a coherent and satisfactory
explanation of what the industry is, and what it is not.

Put simply, the hospitality industry refers to a variety of

businesses and services linked to leisure and customer
satisfaction. A defining aspect of the hospitality industry is also
the fact that it focuses on ideas of luxury, pleasure, enjoyment
and experiences, as opposed to catering for necessities and
essentials.

The Difference Between the Hospitality Industry and the Travel

Industry
The hospitality industry and the travel industry are closely
connected, but there are also some subtle differences to be
aware of. On a basic level, the travel or tourism industry is
concerned with services for people who have travelled away
from their usual place of residence, for a relatively short period
of time.

By contrast, the hospitality industry is concerned with services

related to leisure and customer satisfaction. This may well
mean offering services to tourists, but it can also include the
provision of services to people who are not tourists, such as
locals enjoying their free time, or people coming to an area for
reasons other than tourism.

The hospitality industry is broad, and you probably can find

your ideal niche….if you want to manage a business that helps
people enjoy themselves. ... The basic work of
a hospitality manager includes overseeing the operations,
employees, customer service and the financial record keeping.

Niche tourism refers to a type of specialty tourism that focuses

on a specific concept or topic. This can be food, sports, sex,
war or wildlife tourism.

HOTEL AND RESTAURANT MANAGEMENT

In this course include:

*Financial accounting: specific branch

of accounting involving a process of recording, summarizing,
and reporting the myriad of transactions resulting from business
operations over a period of time.

*Commercial food preparation: TRANSPORT AND

STORE FOOD IN A SAFE AND HYGENIC MANNER\ This unit
refers to the transport of food after preparation to another
location, and storage on its arrival.

*Housekeeping: do the cleaning and other domestic tasks

involved in the running of a household/ establishments.
*Front office methodology: At hotels, front office refers to
the front desk or reception area or the core operations
department of the hotel. This would include the reception
and front desk, as well as reservations, sales and marketing,
housekeeping and concierge. This is the place where guests go
when they arrive at the hotel.

*Economic principles : is the study of the choices consumers

make and the factors and behaviors affecting those choices.

Students pursuing an associate's degree in hotel and

restaurant management usually spend two years on hospitality-
related coursework and, in many cases, an internship in their
field of interest. That way, upon graduation, they have the
leadership skills and industry knowledge they need for success
as a hotel or restaurant manager. To gain admission, students
usually only need a high school diploma or the equivalent.

Associates Degree in Hotel and Restaurant Management

Associate's degree programs in hotel and restaurant

management typically include general education and business
coursework. Students will study employee management, sales
and marketing, inventory, and customer satisfaction. Program
offerings are typically flexible, with classes during the day,
evening or weekend, which makes these programs ideal for
students with other obligations.
Popular Career Options
An associate degree in hotel and restaurant management can
qualify graduates for entry-level management positions. Some
options include:

 Food service manager are responsible for the daily

operation of restaurants or other establishments that
prepare and serve food and beverages. They direct staff
 to ensure that customers are satisfied with their dining
experience, and they manage the business to ensure that
it is profitable.
 Executive housekeeper, co-ordinates
between housekeeping crews to inspect assigned areas
to ensure standards are met. An executive
housekeeper manages many priorities and demands and
is able to solve problems, support staff, as well as perform
the duties of a housekeeper when required.
 Sales and marketing coordinator As the name implies,
the position involves attention to both sales and
marketing efforts. Sales and marketing
coordinators typically work full time in an office
environment, though travel to attend industry events and
trade shows is common.
 Human resources manager a person who in charge of
the department that deals with the employment, training,
support, records, etc. of a company's employees:
The human resource manager is also responsible for
writing up job descriptions. Human resources (HR) is the
department within a business that is responsible for all
things worker-related. That includes recruiting, vetting,
selecting, hiring, onboarding, training, promoting, paying,
and firing employees and independent contractors.

Continuing Education Information

Food service managers can pursue voluntary certification

through the National Restaurant Association Educational
Foundation, which offers the Food Service Management
Professional certification. Applicants need to have field
experience and specialized training before sitting for an exam.
Graduates of associate's degree programs may also consider
applying to a bachelor's degree program in order to prepare for
mid- or high-level positions in the industry. The U.S. Bureau of
Labor Statistics (BLS) notes that a bachelor's or master's
degree is preferred for management positions at full-service
hotels.
In summary, associate's degree programs in hotel and
restaurant management provide students with the direct
industry knowledge and hands-on experience that they will
need for a successful career in the field or admission into a
higher level educational program.