What is Macro Perspective in Tourism and Hospitality Industry

I. Introduction:

This course is designed to give an explicit overview of tourism and hospitality industry. It begin with the study of
tourism by tracking back in time its activities and foundations. It also presents the important terms used throughout
the course. It discusses the vital concepts of different sectors of the industry such as transportation, travel,
intermediaries, accommodation, food and beverage operations, destinations and attractions and their
responsibilities as global tourism stakeholders to implement proactive actions which prevent the sexual exploitation
of children in tourism. It explains the importance of intermediaries in the distribution of tourism services. It
describes the role of travel of travel agencies and tour operators in bringing tourist and tourism providers together.
It also significantly covered the economic and political impacts of tourism as well as the socio-cultural influences
that affect the industry. It discusses the shape of incoming tourism markets and how technological changes affect
the future of tourism industry.

II. Objectives:

The learners must be able to:

 Understand the Hospitality Industry

 Differentiate Hospitality to Tourism
 Understand the Sectors of Tourism Industry and their Trends
 Gain more knowledge about the impact of COVID 19 pandemic in the tourism sector
III. Pre Test:

What can you say about the effect of COVID-19 pandemic in the Tourism and Hospitality Industry?

IV. Discussion:

What is Macro Perspective in Tourism and Hospitality Industry

Macro- being large, thick, or exceptionally prominent – standing out

Perspective- a position or point of view from which something is considered or evaluated.

Tourism – temporary short term movement of people from one place to another outside their workplace which
could 24 hours or less.

Hospitality – the reception and entertainment of guest with liberality and good will – cheerful, content/willing effort.

Industry – a group of organization working together for a common goal. (Organization- a group of people working
together to achieve a common goal).

Saint John Bosco College of Northern Luzon, Inc.Page 1

HISTORY
150
Early Civilizations
During Early Civilizations
people travelled by foot due
to the lack of transportation
methods. Instead of travelling
for pleasure, most people
travelled only for their own
benefit, such as to find food or
to find shelter from stronger
tribes and rough weather.
However, when the time came
some tribes did travel for
other reasons, either for
business purposes like trading
or just for pleasure, such as
travelling in order to perform
religious celebrations and
socialize with others.
Saint John Bosco College of Northern Luzon, Inc.Page 2
200
As Civilization Developed
As civilization developed,
hospitality began to change.
The strongest tribes
controlled the resoures of an
area leaving little for other
inhabitants. The populaces of
many areas were enslaved by
the conquerors and were
stripped of their possessions.
Two groups of people, known
as the Sumerians and the
Phoenicians, seeked to
increase their wealth instead
of fighting. They established
early trade routes, introduced
coinage and made maps,
making it easier for people to
travel.
300
4800 B.C. - A.D. 300
Once again, travelling became
easier thanks to the
advancements made by the
major empires of this time
period; the Egyptians, the
Greeks and the Romans. For
the first time, people were
encouraged to travel and
were attracted to the
beautiful cities created by the
Egyptians. During this time,
there were much more
reasons to travel. Trading
wasn't new, but travelling
now allowed people to
complete government
business and get an
education.
 Period: Jan 1, 1600 to Jan 1,
1800
17th - 19th Century
During this time period, an event
arose that is still present in
today's society. "Le Grand Tour"
occured when England's nobility
decided to send their sons to the
Continent due to the lack of
education at home. The event
taught the sons imporatant skills
that they would need once they
took hold of their fathers estates.
They learned different languages,
financial skills and became
knowledgable in religion and
legal matters. Unlike today, the
trip lasted for several years
instead of days.
Period: 400 to Jan 1, 1200
Roman Era (Pt. I)
By 400 B.C., the Roman Empire
had expanded into an enitre
nation, lasting for around 800
years. Even though the Roman
Empire in no more, they still have
influence in many parts of the
world. Since the Romans were
spread all across Europe, they
needed an efficient way to get
around. The Roman Empire built
more than 80 000km of roads
throughout Europe. This allowed
much easier access to the
different areas throughout
Roman territory, making
travelling much more
convenient.
Saint John Bosco College of Northern Luzon, Inc.Page 3
Period: Jan 1, 1800 to Jan 1,
1939
1800-1939
Tourism underwent a dramatic
change during the Industrial
Revolution. By introducing
machines into the hands of
workers, the focus of an agrarian
lifestyle changed to an indutstrial
one, meaning the use of
machines became much more
frequent. With a new industrial
economy came an emerging
middle class; a class that had
regular opportunities to travel
due to the money they made and
the time they acquired. Major
changes during this era include
the steam engine and the
automobile
Period: 400 to Jan 1, 1200
Roman Era (Pt. II)
With the help of their roadways,
the Romans brought their
culture, language and way to life
to many different parts of the
world. With a strong
government, the Romans were
capable of establishing laws that
provided peace and security to
the people. For the first time in
history, travel was easy and safe.
The Romans also took care of
tourists by building taverns,
restaurants and entertainment
facilities throughout their cities.
Once Rome lay in ruins, travel
became less and less popular.
Period: Jan 1, 1903 to Jan 1,
1930
1903-1930s
Aside from the introduction of
steamships, steam trains and the
automobile, air travel also made
its first appearance. All of these
inventions allowed people to
travel on their own time and to
various destinations. For the first
time, people could travel
independately thanks to the
automobile. Focusing back on air
travel, the air routes established
over land and sea were reduced
from months of travel to mere
days of travel. Tourism had once
again began to grow, and was
now faster than ever.
Period: 400 to Jan 1, 1400
Middle Ages
During the Middle Ages,
kingdoms were spread across the
land, where royal families ruled
under one law. Fearing these
powers, merchants began to
travel into the countryside,
including the famous Marco
Polo. He travelled between
Europe and the Far East, selling
goods and merchandise that was
new and exciting as it came from
foreign land. Interest in these
items gave people a new sense
of curiosity and desire to learn of
these foreign places, helping
humanity through these "dark
ages."
 Period: Jan 1, 1939 to Jan 1,
1945
World War II (Pt. I)
WIth the outbreak of the war
around the 1940s, travel once
again became dangerous. It
seemed that everytime tourism
became popular, a single event
had the power to change that.
People rarely travelled for
pleasure during the war. In fact,
many families were pulled from
their homes to either escape war
or fight in the war. Those who
returned, came back with the
knowledge of other cultures to
share with friends and family,
sparking an interest in these
foreign places.
Jan 1, 2000
Modern Day Tourism (Pt.I)
Today, tourism is at it's peak, with
people travelling from their homes
to places of all corners of the earth.
The hospitality and tourism industry
had made its way all around the
globe, with hotels and reststops
appearing almost anywhere you go.
Even though travelling is as popular
as ever, certain events regarding
terrorism have changed the way we
travel. Several major attacks, such as
the attack on the World Trade
Center, have made travel a more
tiring ordeal.
Saint John Bosco College of Northern Luzon, Inc.Page 4
Period: Jan 1, 1939 to Jan 1,
1945
World War II (Pt. II)
Even though travel was limited
during the Second World War,
many technological
advancements regarding travel
and transportation were made.
Planes and automobiles were
being created faster, bigger and
even more comfortable, as these
traits were necessary in order for
the Allies to reign supreme.
Jan 1, 2000
Modern Day Tourism (Pt. II)
Airlines have become very strict as
to what you can and can't bring on-
board. Some may find this to be
annoying, but safety is a number
one priorty in the hospitality and
tourism industry. Tourism itself as
become a target for terrorists, and
it's hard to say when it will stop, if it
ever does stop. However, even with
all these negative events occuring
throughout the world, tourism has
remained a popular, and will only
continue to grow as an industry and
a hobby.
Jan 1, 1945
After WWII
Even after the war had ended,
the modernized machines that
were built for the war remained
as transportation. This allowed
tourism to once again, begin to
grow into a bigger and better
industry. Nations that had
already industrialized had a
higher income rate as well as
more leisure time.
Transportation systems were
safer and more accessible than
ever before. Together, these new
aspects of tourism pared with
the use of all around common
currency helped make tourism
what it is today.
Period: Jan 1, 2012 to Jan 1, 2022
The Future
It is hard to say what will become of
tourism as time goes on. However,
one can assume that it will only
countinue to get better. With new
discoveries being made each day,
technology will only continue to
improve, ultimately helping the
hospitality and tourism industry in
it's quest to make money and
provide enjoyment for the people.
Perhaps one day the tourism
industry will achieve its goal of
making travel as convienant and safe
as it can be. The least we can do is
hope that it will.
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.

Characteristics of the Tourism Industry

Perishability

Image by Jeremiah Blatz

Perishability is one of the most important characteristics of the tourism industry. The products/services in the
tourism and travel industry are consumed as they are produced . Hotel rooms and cable car seats cannot be
warehoused for futures sales. When a hotel room is not booked tonight, you cannot take ‘tonight’ and sell it
tomorrow. Once the train left the station, unused capacity cannot be sold afterwards – provided that it was no time-
traveling train.

As an uncertainty in customer demand leverages this issue, hotels and travel agencies tend to overbook available
rooms and seats. Finding an alternative product for the customer and living with the consequences of overbooking
is statistically more economical.

Saint John Bosco College of Northern Luzon, Inc.Page 5

Inconsistency

Image by Andy Carvin

Products of the tourism industry always differ. Even the same hotel room in the same week with the same weather
can be perceived differently due to the mood of the chef. It is always about the experience that the customer
makes. Rational product attributes like price, nights of stay, and additional services can only be compared to a
minor degree. It is challenging to deal with the customer perception of the product (the perceived quality) as it is
highly affected by numerous uninfluenceable aspects such as weather, construction sites, other customers etc.
Hence, the product is very inconsistent and cannot be standardized.

Investment and immobility

Image by Travis S.

Talking about hotels and other accommodations there is usually a big capital lockup in the assets. Hotels have
furniture, restaurants, TV-sets, laundry-service, pools, saunas etc. – invested capital that has to pay off.
And that’s not all – all those investments are attached to one locality which means that those tourism companies
are to a huge extent dependent on the attractiveness of the region, the country, its surroundings and so forth.

Saint John Bosco College of Northern Luzon, Inc.Page 6

People-oriented

Image by C. Frank Starmer

The tourism industry builds entirely upon people. The interaction between the staff and the customer determines
the perceived product quality. Unlike tangible products where the customer buys certain features, production
quality, durability etc. the holiday quality results from personal interactions starting with the information and
booking process over the stay up to the journey home.

Inseparability

Image by Peter E. Lee

Most travel products are first sold and the produced and consumed at the same time. This is an aspect which
clearly sets tourism apart from tangible products. When you buy a new computer it is produced and shipped before
you see it on the website or at the retailer’s premise. The consumption of that computer – using it – takes place
after purchase at your home. You cannot take the hotel room home – only the small bottles of shampoo and
toothpaste. And you cannot enjoy the alpine sleigh ride in your living room. Tourism products can only be
consumed at the supplier’s premise.

Intangibility

Image by Tirol Werbung

Tourism products are intangible. A night in a hotel, a day in a ski-resort, the calm flight with the nice attendant, and
the smiling tour-guide taking you to the peak of an alpine mountain – all this cannot be touched. Tourism is all

Saint John Bosco College of Northern Luzon, Inc.Page 7

about the time spent and the experience made. The products sold by tourism companies both can’t be reproduced
or reused. Nor can the feeling of consumption be captured to its full extent. There are merely attempts with
photographs and video cameras. Probably everybody was already in the situation where you showed your holiday
pictures to your family or friends and said “Well, it looked better when I was there. The picture cannot really
reproduce the sentiment)… Tourism is a subjective picture planted into the customers’ minds.

Inflexibility

Image by capl@washjeff.edu

Travel products are fairly inflexible in terms of fluctuation. Hotels cannot change their capacities quickly enough to
react on spontaneous fluctuations in demand. Hence, such companies try to balance between high and low
demands, so that it’s not too much of a pain for the company when restaurant tables remain empty and for
customers when there are no more tables available.

Imitability

Image by capl@washjeff.edu

Offers and products by tourism companies are generally easy to copy. When the neighbor hotel adds a masseur to
its SPA offer you more or less only need somebody with a firm grip and here you go. So how can hotels build a
unique selling proposition? Originality, consistency, location etc. – but not by hoping that their services are not
imitable.

These are all relevant characteristics, which have to be taken into consideration for marketing activities.  In my
further posts I will discuss traditional marketing measures and social media marketing

Saint John Bosco College of Northern Luzon, Inc.Page 8

 EFFECT OF COVID-19 PANDEMIC IN TOURISM AND HOSPITALITY INDUSTRY

INTERNATIONAL TOURISM DOWN 70% AS TRAVEL RESTRICTIONS IMPACT ALL REGIONS

ALL REGIONS

Restrictions on travel introduced in response to the COVID-19 pandemic continue to hit global tourism hard,
with the latest data from the World Tourism Organization (UNWTO) showing a   70% fall in international
arrivals  for the first eight months of 2020.

According to the newest UNWTO World Tourism Barometer, international arrivals plunged 81% in July and 79% in

August, traditionally the two busiest months of the year and the peak of the Northern Hemisphere summer season.

The drop until August represents 700 million fewer arrivals compared to the same period in 2019 and translates

into a loss of US$ 730 billion in export revenues from international tourism. This is more than eight times the loss

experienced on the back of the 2009 global economic and financial crisis.

“This unprecedented decline is having dramatic social and economic consequences, and puts millions of jobs and

businesses at risk,” warned UNWTO Secretary-General Zurab Pololikashvili. “This underlines the urgent need to

safely restart tourism, in a timely and coordinated manner”.

This unprecedented decline is having dramatic social and economic consequences, and puts millions of jobs and

businesses at risk

All world regions recorded large declines in arrivals in the first eight months of the year. Asia and the Pacific, the
first region to suffer from the impact of COVID-19, saw a 79% decrease in arrivals, followed by Africa and the
Middle East (both - 69%), Europe (-68%) and the Americas (-65%).

Following its gradual reopening of international borders, Europe recorded comparatively smaller declines in July

and August (-72% and -69%, respectively). The recovery was short-lived however, as travel restrictions and

advisories were reintroduced amid an increase in contagions. On the other side of the spectrum, Asia and the

Pacific recorded the largest declines with -96% in both months, reflecting the closure of borders in China and other

major destinations in the region.

Saint John Bosco College of Northern Luzon, Inc.Page 9

Demand for travel remains largely subdued due to the ongoing uncertainty about the pandemic and low

confidence. Based on the latest trends, UNWTO expects an overall drop close to 70% for the whole of 2020.

Rebound in international demand expected by Q3 2021

UNWTO’s Panel of Experts foresees a rebound in international tourism in 2021, mostly in the third quarter of 2021.

However, around 20% of experts suggest the rebound could occur only in 2022. Travel restrictions are seen as the

main barrier standing in the way of the recovery of international tourism, along with slow virus containment and low

consumer confidence. The lack of coordinated response among countries to ensure harmonized protocols and

coordinated restrictions, as well as the deteriorating economic environment were also identified by experts as

important obstacles for recovery.

V. Post Test:

To be posted later

Online References:

https://www.timetoast.com/timelines/history-of-hospitality-and-tourism-by-michael-wood

https://sebastiankaiser.wordpress.com/2012/05/21/characteristics-of-the-tourism-industry/#:~:text=Perishability
%20is%20one%20of%20the,consumed%20as%20they%20are%20produced.&text=As%20an%20uncertainty
%20in%20customer,overbook%20available%20rooms%20and%20seats.

https://www.unwto.org/taxonomy/term/347#:~:text=1.5%20billion%20international%20tourist%20arrivals,in
%20view%20of%20current%20uncertainties

Saint John Bosco College of Northern Luzon, Inc.Page 10