THE NATURE OF

TOURISM AND
HOSPITALITY INDUSTRY
LEARNING OUTCOMES:
• Describe the concept of the visitor experience
• Explain the meaning and importance of the
tourism value chain
• Discuss the tourism system
• Identify the characteristics of tourism as a
service
 Visitor Experience
• Information and Communication Technologies
• Co-design, co-produce, and co-evaluate
experiences
• “Experiential Travel” is a dominant force in
the industry
• “travel we live through instead of look at” and
“tourism as experience and memory”
• “destinations must provide a continuum of
experiences”
VALUE CHAIN
• It is identifies the most important activities
that will deliver value and customer
satisfaction.
• Categories: Primary Activities and Support
Activities
• Also include the mark-up on the cost
Co-Creation
• The concept of Value Co-Creation was
introduced by Prahalad and Ramaswamy
(2004) which refers to mutual benefits that
can be derived by the customer and
organization
• Customer participation in his designing experience
• Company generate real-time feedback, target
niche markets, create new products, improve
branding and increase revenues
TOURISM VALUE CHAIN
 TOURISM VALUE CHAIN
• “It is a network of tourism organizations
engaged in different activities ranging from
the supply of different components of tourism
products/services such as flight and
accommodations to the distribution and
marketing of the final tourism product as a
specific tourism destination, and involves a
wide range of participants in both the private
and public sectors”
 TYPES OF ACTIVITIES
• Primary Activities
• These refer to the actual production, sales, and
delivery of tourism product to the consumer
• Support Activities
• These are the manpower, technology and other
resources necessary to facilitate exceptional
service
 Hospitality Value Chain
• Primary Activities • Support Activities
• Planning and • Human Resources
Development • Maintenance
• Construction • Information and
• Marketing (loyalty Communication
programs, VIP relations) Technologies (ICTs)
• Sales • Accounting
• Service Delivery • Engineering
• Operations • Purchasing
• Franchise relationships • Legal
• Property development • Research
Evaluation
TOURISM SYSTEM
TOURISM SYSTEM
TOURISM AS PRODUCT AND SERVICE
CHARACTERISTICS OF TOURISM AS
A SERVICE

• Intangibility
• Inseparability
• Variability
• Perishability
• Seasonability
 THE HISTORY OF
TOURISM AND
HOSPITALITY INDUSTRY
• Discuss the history of the Tourism and
Hospitality Industry
Evolution of the
Tourism Industry
 Early Tourism
• Tourism – derived from the Hebrew torah
which means studying, learning or searching
• Tourism can trace its ancestry in the Old
Testament
• Noah with his Ark
• Book of Ezekiel (trade and commerce)
• Early forms of Tourism
• Business Travel
• Religious Travel
 Early Tourism
• The invention of money, writing and wheel by
the Sumerians facilitated travel and exchange
of goods.
• The early Phoenicians are merchants and
traders of the Mediterranean
• Greek and Romans are well known traders
• Additional Form of Travel - Private Purpose
(Olympic Games held in 776 BC)
 Early Tourism
• Roman travelers was largely supported by
improvement communication, first-class roads
and inns (forerunners of modern hotel)
• Travel for religious –
• Pilgrimages to places of worship such as the
Chaucer’s Tale to Canterbury
• St. James of Galicia was the foremost destination
of the English pilgrims in the 14TH Century
• 1388 – English Pilgrims were required to obtain
permits – forerunners for the modern passport
 Tourism in the Medieval Period
• Declined of Travel
• Travel( derived from the word Travail)
became burdensome, dangerous and
demanding during this time
• Decline of Roman Empire (5TH Century)
• Roads were not maintained
• Harmful thieves
• Crusaders and pilgrims were the only travelers
Tourism at the Renaissance and
Elizabeth Era
• Travel for education was introduced largely by
the British.
• It became popular in the 16TH century under
Elizabeth I – young men seeking position in
court were encouraged to travel to the
continent
 Tourism at the Renaissance and
Elizabeth Era
• Grand Tour – of the
cultural centers of
the continent which
lasted for three years
• France and Italy
• 18TH century – travel
for education
become
institutionalized for
the upper class of
the society
Tourism at the Renaissance
and Elizabeth Era
• Sick sought remedy for
their illness in “spas”
or medicinal baths.
• The term is derived
from the Walloon word
“espa” meaning
fountain
• SPA is an acronym
(Sanitas / Salus Per
Aquam) that means
healing through water
• Turnbridge Wells in Kent became famous spa
in the 1660s.
• Bath in Engalnd
• Baden-Baden in Germany
• Baden in Austria
• Baineles-Basin in France
• Lucca in Italy
• Karslbad and Marienbad in Bohemia
Travel in the Industrial
Revolution
• It brought about major changes in the scale
and type of tourism development.
• Technological changes and social changes
• Travel as a recreational activity
Modern Tourism – 19TH Century
• Two technological developments in the early
part of the 19TH century
• Introduction of railway (promote business and
competition)
• Development of steam power (increased mobility)
Modern Tourism – 19TH Century
• Steamers on the
major rivers provided
reliable and
inexpensive
transportation that
lead to the popular
day-cruises and
growth of the coastal
resort
Modern Tourism – 19TH Century
• Later years of 19TH century, travel organizers
emerged as an established institution
• Thomas Cook
• The father of Tourism
• His first organized trip was between Leicester to
Loughborough (covered 22km) in 1841 with 570
passengers at a round-trip fare
• 1866, he organized his first American tour
• 1874, he introduced “circular notes” – first
traveler’s check
Thomas Cook (Father of
Tourism)
Modern Tourism – 19TH Century
• Other tour companies which appeared in
Britain at this time
• Dean and Dawson in 1871
• Polytechnic Touring Association in 1872
• Frames in 1881
• American Express was founded by Henry Wells and
William Fargo
Modern Tourism – 19TH Century
• Photography and
guide books became
popular
• Baedecker – first
published in 1839
which became the
leading guide for
European countries
Tourism in the 20TH Century
(World War I)
• International travel
• New forms of mass
communication
• Decline of the
railways
• Introduction of motor
car – Karl Benz
Tourism in the 20TH Century
(World War II)
• Progress of aircraft technology
• Air travel
• 17 Dec 1903 – Wright Brothers build and fly the
first airplane
• Boeing 707 jets in 1958 (age of air travel for
masses)
• 1960s and 1970s the growth or international
travel
• Private car ownership
• Encouraged growth of excursions and short-
stay holidays
• Tour operators – flexible packages for private
motorists
• Hotels offer programs for short-stay holidays
• Increase in discretionary income and leisure
time led to increase recreation and travel
• “Long weekends”
The Pineapple Tradition
• It is the symbol of
Hospitality Industry
• Brought back from the
West Indies by early
European explorers
during 17TH Century
• It was displayed at
doors or on gateposts,
announcing “The ship
is in! Come join us.
Food and Drink for
all”
 Hospitality
• Hospice – “to provide
care/shelter for
travelers”
• Hospice de Beaune
(1443) also called
Hotel Dieu or the
House of God
• Nicolas Rolin
Ancient Times
• Sumerians were the
first to record
elements of hospitality
in about 4500 years BC
• Produced the Beer
• Taverns (a place for
locals to relax)
• 4000 and 2000 B.C.E.
• Taverns and inns were
offered in Europe,
Egypt, China and India
Greece and Rome
• Code of Hammurabi (circa 1700 BC)
• The code required owners to report guests who planned
crimes in their taverns.
• The penalty for not doing so was death
• Increased travel and trade made some form of
overnight accommodations
• Romans constructed elaborate and well-appointed
inns
• Marco Polo – 10,000 inns, the best of which were
in China
• The first “business lunch” is reputed to have been
the idea of Sequis Locates, a Roman innkeeper; in
40 BC.
Medieval Times
• Charlemagne Abbey at Roncesvalles
established rest
houses for pilgrims in
the eighth century
• 1282, the innkeepers
of Florence, Italy,
incorporated an
association, for the
purpose of business
Medieval Times

• In England, Stagecoach
became the favored
mode of transportation
– post houses
• An “ordinary” began to
appear in England
• It was a
restaurant/tavern for
commoners that served
a fixed- price, fixed-
menu meal to appear in
England
 Coffee Houses
• 16TH Century, 2 exotic
imports influenced the
habits of Western Europe:
coffee and tea
• 17TH Century, coffeehouses
sprang up all over Europe o
• Famous Café Florian (Piazza
San Marco)
• The first English coffee
house was opened in 1652 in
Oxford – Queen’s Lane
Coffee House
• This movement helped
sober up an entire continent
 The New World
• Early tavern was built in Jamestown, Virginia
• Boston where the first “ordinary” was recorded
• Cole’s Ordinary – 1636
• Hudson’s House – 1640
• Stadt Huys – 1642 (First known Tavern in New York City)
• Kreiger’s Tavern – King’s Arms became the
Revolutionary headquarters of British General Gage
• Frauncis Tavern - Revolutionary headquarters of
Gen. George Washington
• John Adams, second president of the USA owned
and managed his own tavern between 1783 and
1789
French Revolution
• The changed the course of Culinary history
• M. Boulanger, “father of the modern
restaurant”, sold soups at his tavern.
• Restorantes (restoratives) – origin of the word
restaurants
• 1789-1799, all best chefs worked for the
nobility were deposed and lost their
employment
• Chefs settled to America – New Orleans
(French enclave), Europe; Quebec
French Revolution
• Hearty fare of the British and primitive
cooking of Americans were laced with sauces
piquantes (sauces with sharp taste or
appetizing apperance) and pots au feu
(French beef stew)
• Thomas Jefferson acquired a taste for French
Cuisine and persuaded a French chef to come
to White House.
• The Court of the Two Sisters – interesting
restaurant in New Orleans
Nineteenth Century
• Restaurant continued to
flourish in Europe
• 1856, Antoine Carême
(Father of French
Cuisine) published La
Cuisine Classique and
other volumes detailing
numerous dishes and
their sauces.
• Grande cuisine offered a
carte (or “list”) of
suggestions available
from the kitchen –
beginning of the a la
carte menu
 Nineteenth Century
• 1890, the Savoy Hotel
opened in London
• Cesar Ritz (General
Manager) and George
August Escoffier (Chef de
Cuisine) transformed hotel
restaurants.
• Escoffier is one of the
greatest chefs – published
the book Le Guide
Culinaire
• He introduced the brigade
de cuisine system
 Nineteenth Century
• 1848, a hierarchy o eating
places existed in New York
City.
• Sweeney’s “sixpenny eating
house” – Daniel Sweeney
“father of the greasy
spoon” (Bottom)
• 1827-1923 Delmonico’s (top
of the list) – synonymous
with fine food, exquisitely
prepared and impeccably
served
Delmonico’s Restaurant
• It served Swiss-French cuisine and became
focal point of American Gastronomy
• It was credited with the invention of the
bilingual menu, Baked Alaska, Chicken a la
King and Lobster Newburg.
Nineteenth Century
• Many hotel palaces was built in America
• Palmer House – Chicago
• St. Charles – New Orleans
• Planter’s Hotel – St. Louis
• The Lenox – Boston
• The Menger – San Antonio
The Twentieth Century
• 1921 – Walter Anderson and Billy Ingraham
began the White Castle hamburger chain
• 1959 – Four Seasons restaurant, the first
elegant American restaurant that was not
French in style.
• The first to offer seasonal menu
The Twentieth Century
• World War II – North America has a rapid development
of hotels, motels, fast food and coffee shops.
• 1950-1960 is the incredible growth of air
transportation.
• New jets were introduced
• Hotels and restaurant chains sprang up to cater to the
needs of the business and leisure traveler as well as
city residents.
• The 1980’s saw hospitality, travel, and tourism
expand as baby boomers influenced the industry
through their buying power.
• After 9/11 the economic recovery proved very strong
as hospitality businesses expanded in North America
and abroad.
The Twenty-First Century
• The hospitality business continues to mature
with increased market segmentation and
consolidation
• Companies were increasing their focus on
security, health, sustainability and life styles
• More people is traveling from and to China,
Brazil and India