ELECTIVE 5

HOSPITALITY OPERATIONAL MANAGEMENT

Prepared By:
RUBY DG. ELUMBRA, MAEd-HT
VIELL MARIAN T. BUMATAY
Module 1: Introduction to the Hospitality Industry
Learning outcomes:
_____________________________________________________________________
At the end of this chapter, the students should be able to:
 Explain the relationship of tourism and hospitality;
 Discuss the components of the tourism and hospitality industry;
 Define tourism and hospitality;
 Compare tourism and hospitality with other industries;
 Understand the Concept of Hospitality;
 Describe the Characteristics of the Hospitality Industry;
 Enumerate and differentiate the Scopes of Hospitality; and
 Know the Relevant Terms Used in the Industry.

Learning Content:
_____________________________________________________________________
 The Relationship of Tourism and Hospitality Industry

 The Food and Beverage Component

 The Lodging Component
 Recreation and Entertainment Component
 Travel and Tourism Component
 Transportation
 Travel Agencies and Tour Operators
 Concept of Hospitality
 Characteristics of the Hospitality Industry
 Scopes of the Hospitality Industry
 Relevant Terms used in the Industry
MODULE 1: INTRODUCTION TO THE HOSPITALITY INDUSTRY

Concept and definition of hospitality

The concept of hospitality is the reception and entertainment of guests/
visitors with liberality and goodwill. the most important aspect of hospitality
refers to warm welcome, reception, and cordiality. It is the warm reception,
which invariably induces providing a pleasant atmosphere utilizing its
available facilities and activities.

 Merriam Webster’s Dictionary defines hospitality as, “generous and

friendly treatment of visitors and guests or hospitable treatment.”
 Dictionary.com goes further to define it as, “the friendly and generous
reception and entertainment of guests, visitors, or strangers.”

For those working in hospitality, this transcends only working in

hotels or food and beverage. This extends to anyone providing pieces of an
event that provides a friendly, welcoming environment that defines
hospitality.

The Growth of the Travel Industry

Over the last two decades, international departures have more than
doubled from around 600 million to more than 1.4 billion in 2016. Thanks to
this immense potential, a network of service providers has developed that
caters to nearly every desire imaginable. Hospitality has gradually become
one of the largest and most diverse industries, employing hundreds of
millions spread over different sectors.

Today, businesses in the industry can generally be divided into four

categories or scopes:
 1. Lodging: Hotels, motels, inns, resorts, pensions, etc.
2. Food & Beverage: Restaurants, fast foods, catering, etc.
3. Entertainment and Recreation: Attractions, gaming, parks, clubs,
etc.
4. Travel & Tourism: Transportation, travel agencies, tour operators,
etc.

The Food and Beverage Component

The food and beverages industry is all companies involved in
processing raw food materials, packaging, and distributing them. This
includes fresh, prepared foods as well as packaged foods, and alcoholic and
nonalcoholic beverages.

The public looks for food and beverage service everywhere—in hotels,
motels, airlines, airports, cruise ships, trains, and shopping malls. There must
be food service available to them for breakfast, lunch, dinner, and snacks.
There are commercial restaurants that provide food and beverage services
such as fast service restaurants, ethnic restaurants, and specialty restaurants.
Aside from restaurants, taverns, bars, kiosks, vending machines,
supermarkets, food stalls, food carts, and food trucks now offer food and
beverage services.

Food service establishments are found in theme parks, in schools and

colleges, in hospitals and homes for senior citizens, in prisons and halfway
houses, and in shelters for the homeless.

The Lodging Component

Lodging involves providing overnight or even long-term services to
guests. For many people, lodging is a place to sleep. For others, lodging
facilities not only provides beds but also entertainment and recreational
facilities. Hence, the lodging industry component has began to accommodate
several customer preferences—from budget motels to luxury hotels and
expensive resorts.

Lodging facilities such as inns, motor hotels, lodges, or motor inns are
hotels and motels that use different names. There are lodging establishments
that use different terms such as bed and breakfast, resort hotel, resort
condominium, conference center, and time-sharing. There are lodging
establishments that offer special facilities such as the ski lodges in Colorado
and casino hotels in Las Vegas and Atlantic City.

Campgrounds, transient trailer parks, school and college dormitories,

summer camps, and health spas also attend to the lodging needs of those who
are away from home.

In other countries, there are lodging establishments such as the

parador—an old Spanish monastery or castle that was converted to a hotel;
pension or pensione—a French or Italian home in which guests are provided
with a room and board; chateau—a French castle or elegant country home
used as a hotel; ryokan—a Japanese inn which traditional customs are
observed, and hostel—a lodging facility in which inexpensive
accommodations are provided to students and guests on a nonprofit basis.

Recreation and Entertainment Component

Recreation is the process of giving new life to something, of restoring
something, whereas, leisure is the productive, creative, or contemplative use
of free time. Recreational activities can be active or passive, individual or
group activity. There are varied views about recreation and leisure as well as
motivations for recreational participation.

Several factors promoted the growth of recreation. These are increase

in discretionary time, influence of technology, public interest in health and
fitness, commodification of leisure, therapeutic recreation service, and new
leisure roles for women.

Travel and Tourism Services Component

Travel and tourism are used together as an umbrella term to refer to

those businesses that provide primary services to travelers. These include not
only food and beverage services, lodging services, recreation and
entertainment services, but also transportation services, and the services of
travel agencies and tour operators.

Transportation
The main purpose of transportation is to make it possible for people to
go from one place to another. There are many ways to do this, from the
primitive and simple to the modern and complex. The common means of
transportation are automobiles, recreational vehicles (RVs), buses, trains,
ships, and airplanes.

Travel Agencies and Tour Operators

Travel agencies and tour operators are modern additions to the travel
and tourism world. Both have become important in the survival of many
businesses in the tourism and hospitality industry.

A travel agent is one who sells travel services in a travel agency. He or

she sells travel services that are assembled by others into “packages.” In the
travel business, a package is a bundle of related travel services offered to a
buyer at a single price.

Tour operators are wholesalers who make the necessary contacts with
hotels, airlines, and other providers of travel services and device packages
which will appeal to retail buyers. They are volume purchasers who are able
to negotiate lower prices because of their high-volume purchases. They are
able to sell tour packages at a cheaper price than the individual consumer.

Every category under the umbrella of the term "hospitality" further contains
many different sub-sector and operators. The mere global scale of the
industry makes it difficult to provide a conclusive overview without taking
up hours of your time. Travel, for instance, encompasses all modes of
transportation available to travelers, including coaches, airplanes, vessels,
taxis, etc. While all sectors are interconnected and reliant on each other, each
one of them is facing unique challenges and opportunities in the future.

Definition of Hospitality
The word “hospitality” is derived from the Latin word hospitare,
which means “to receive as a guest.” This phrase implies that a host is
prepared to meet a guest’s basic requirements while the guest is away from
home. The requirements of a guest in these circumstances are food, beverages,
lodging, or shelter.

Several related words come from the same Latin root, including
hospital, hospice, and hostel. In each of these words, the principal meaning is
a host who receives, welcomes, and caters to the needs of people who are
temporarily away from their homes.

The Relationship of Tourism and Hospitality

The tourism and hospitality industries strongly affect one another.

Several associations and industry leaders consider the combined industries
and tourism and hospitality as one large industry- the tourism and hospitality
industry. The components of this large include (1) food and beverage services,
lodging services, (3) recreation services, and (4) travel-related (tourism)
services. These components constitute the tourism and hospitality network.
"Network" means a complicated interconnection of parts or components.

The components of the tourism and hospitality network may be

independent and competitive businesses; yet, they are interrelated and
interdependent. The interdependence among the components is strong
especially in those countries which rely on tourism and hospitality for their
economic development. Although the components of the tourism and
hospitality network are constantly changing in connection with labor,
opportunity, and growth, the network will continue to dominate as a global
industry.

Hospitality service is about creating a sense of well-being for the guests. it is a

feeling that their needs are being met and their business is valued.

Hospitality service can be characterized as follows:

1. Intangibility: The customer cannot touch, feel or smell. they can
simply develop an imaginary picture about what they are going to see at the
meeting point.
2. Inseparability: A person who possesses a particular skill by using
equipment to handle a tangible product provides a service. Therefore service
cannot be separated from the person or firm providing it.
3. Heterogeneity: in hospitality, the service and products are offered to
humans simultaneously. the human element is very much involved in
providing and rendering services. e.g. a chef who cooks the best dishes in the
best possible manner with full attention but, every time the same chef may
behave differently while preparing the same chef to behave differently while
preparing the same dishes or while presenting them.
 4. Perishability: In hospitality, services cannot be stored because they
are perishable. for e.g.a Valenti bedroom in a hotel or an unsold seat in the
dining room represents a total loss or even a fluctuating demand.
5. Ownership: When one buys a proudest s/he becomes its owner- be it
a shop, book, food, etc. IN the Case of service you only pay for its but you
never own it. e.g. a guest simply hears the hotel rooms but does not own them.

Hospitality and Services

The word “hospitality and services” is referred to willing and doing
something for somebody in the best way. It is a human behavior of elegance
that is based upon theoretical and practical exercise. Hospitality and services
are two sides of a coin, without one side the coin remains incomplete. It is
about catering services to guests who are away from their home environment
and have high expectations and needs of quality products, services, and
atmosphere.

Hospitality and service are about creating a sense of well-being for the guests
and deliver the demands the customer wishes to receive the required services.

In the concept of hospitality and service, there are two main types of services:

1. Personal service: It is an intangible service that exists, but is difficult to

desire to describe, understand and measure. It is about creating a sense of
well-being for the travelers/guests, making them feel welcome and valued,
while at the same time ensuring that their needs are looked after.it is a non-
material service that does not exist as a physical thing but is largely more
emotional than rational. So it requires interpersonal skills and attitudes such
as honesty, loyalty, willingness, trustworthiness, dependability, and
reliability. If refers to service personnel as the key to providing a high-level
personalized/individualized service.
2. Material services: it is referred to as tangible services. it denotes something
that can be touched or felt physically, or that can be seen to exist. it is
generally something provided good personal service without the back-up of
goods material service. it is a product of the industry that is regarding as the
physical facilities that customer buys and uses. so, customers are more likely
to comment on material service when it is below the standard.

The key to success in the hospitality business is to provide a quality

standard of both personal and material service. Every establishment supplies
its guests with transportation, accommodation, food and drinks, and other
facilities. But if the establishment also focuses on providing a high level of
personal service simultaneously, then the business will have a competitive
frame.

Hospitality Industry

The hospitality industry consists of a broad category of fields within the

service industry that includes accommodation, restaurants and bars, event
planning, their parks, transportation, cruise line, and additional fields within
the travel and tourism industry. Specifically, the hospitality industry is part of
the travel and tourism industry, but accommodation and catering is a part of
the hospitality industry, which is limited within the periphery of hotels and
catering industries. It ranges from small accommodation to star category
hotels and restaurants. It is the industry of providing required and necessary
service to travelers for a different purpose, especially for leisure/pleasure
activities.

Generally, the hospitality industry is divided into two sectors:

1. Private sector: Industries owned by the group of individuals or franchised

by the expertise of hospitality management in a sole of entrepreneurship is
called the private sector. Hospitality industries in the private sector include
accommodation, catering, travel agencies, tour operators, transport, guide,
and information service entertainment and leisure products.

2. Public/government sector: Industries owned by the government or public

association and sole entrepreneurship is called public sector. Hospitality
industries in the public sector include planning and development(NTB, in the
case, of Nepal), transport immigration, custom and excise, marketing
licensing and regulation, etc.

The new names of hospitality industries have increasingly been created

by the retailer of its business, namely hotel, resort, guesthouse, rest house,
safari lodge, cottage, pub, bar, and other groups. It has to be focused on the
basic needs of the guest and their physical e.g. a safe and comfortable
surrounding to live in, quality food and beverage, and excellent service;
psychological, e.g. the urge to buy, it can be helped by indirectly advertising
the various things in the establishment that may appeal to them; social e.g.
guests/ visitors want a pleasant atmosphere for relaxation and entertainment;
practical e.g. guests/visitors want facilities for travel arrangement.

To fit in hospitality services, one should have the virtue of friendlies,

helpfulness, and willingness towards the guest. This service is about creating
a sense of well-being in guests, making them feel welcome and valued, and at
the same time ensuring that they are more than expected. Guests' needs and
expectations must be always anticipated by the employees. This will not only
bring profit to the establishment but also will yield extra individual benefits
to the staff.

Characteristics of Hospitality and Tourism

Tourism and hospitality, has special characteristics which make it
different from other industries.
1. In tourism and hospitality, the product is not brought to the consumer;
rather, the consumer has to travel and go to the product to purchase it. In
other industries, an item manufactured in a factory is brought to the
wholesaler, and retailer and untimely to the consumer.
2. The products of tourism and hospitality are not used up; thus, they do not
exhaust the country’s natural resources. The products of other industries have
a limited life and at the end of it are either junked or replaced with new ones.
3. Tourism and hospitality is a labor-intensive industry. It requires more
manpower than other industries.
4. Tourism and hospitality is people-oriented. It is primarily concerned with
people. One of the most important motivations of tourists is to meet other
people and see how other people live.
5. Tourism and hospitality is a multidimensional phenomenon. It is
dependent on many and varied activities which are separate but
interdependent.
6. The tourism and hospitality industry is seasonal. During vacation seasons,
millions of tourists travel, which result in increased revenues for several
tourism agencies; but when vacations are over, these companies experience a
big decline in dollars earned.
7. The industry is dynamic. It is characterized by the changing ideas and
attitudes of its customers and therefore must be always prepared and willing
to adjust to these changes.
Reference/s:
http://infoanil.blogspot.com/2015/11/concept-of-hospitality-
industry_25.html
https://www.socialtables.com/blog/hospitality/what-does-hospitality-
mean/
https://hoteltechreport.com/news/modern-history-hospitality-industry