Chapter 3

Tourism and hospitality Business Environment

A. The Tourism and Hospitality Industry

● The tourism and hospitality industry was seen as a major force that will drive economies
to a better state before the pandemic happened.

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B. Tourism and hospitality industry system
Factors that Guide Businesses in
Tourism and Hospitality Industry
1. Generate Employment
2. Socio-Economic Growth
3. Conservation of the Environment
4. Advance Private-Public Collaboration
• Public Sector - lay the guidelines and requirements for all stakeholders to observe.
• Private Sector - expected to follow the directions set by the government and infuse

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investments to jumpstart the local economy.
United Nation World Tourism Organization (UNWTO)

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● It is the United Nations' primary worldwide body focused in the field of tourism.
Tourism Organization from Different Nations
● Pacific Asia Travel Association (PATA)
● Caribbean Travel Organization
(CTO)
● European Travel Commission

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(ETC)
Sectoral and Advocacy
Organizations
● World Travel and Tourism Council (WTTC)
● Cruise Lines Industry Association (CLIA)
● International Air Transport Association (IATA)
● International Ecotourism Society (TIES)

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● World Tourism Association for Cultureand Heritage (WATCH)
Department of Tourism (DOT)
● a government regulatory body mandated to spearhead the planning,programming,

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coordinating,implementing, in the development and promotion of the tourism industry.
Attached Agencies and Government
under DOT
● Tourism Promotion Board (TPB) • Philippine Commission on Sports
Scuba Diving
● Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
● Philippine Retirement Authority(PRA)
● Intramuros Administration
● Nayong Filipino Foundation (NFF)

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● National Parks Development Committee (NPDC)
Republic Act 9593 known as
Tourism Act of 2009
● prescribes that every province, city,or municipality shall have tourism officers responsible
for the development and promotion of tourism in their area.
C. Tourism and Hospitality
Industry Value Chain

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Major sectors in the Tourism Industry
TRAVEL INTERMEDIARIES / TRAVEL TRADE
1. Travel Agency

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2. Tour Operator
Transportation Sector
● Air
● Water

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● Land
Accommodation Sector
● Facilities or establishment thatprovides a bed for sleep and a roof to rest for visitors.
● Food and Beverage Sector
Composed of restaurants or any food establishments that
provides nourishment to guests
● Destination or Attraction
Reasons why people travel.
● Government Sector
Provides guidelines to follow when

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visitors engage in tourism.
Tourism-Related Establishments
D. Entrepreneurship and
Entrepreneurs in Tourism and Hospitality
● Composed of a very diverse collection of establishments that are engaged in business
under the tourism industry.
E. Features of Tourism and

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Hospitality-Related Business
Here's what you'll need before
enjoying your journey
● Tangible and Intangible
● Natural, Cultural and man-made resources
● Priced and sold through distribution channel and has a life cycle
● Promotes welfare of people
● Profit and income is not limited to the main players and everyone is gaining from it
● Promotes gender equality and women’s
F. Trends in Travel and Gastro
Markets
● One thing is sure in the tourism industry - The desire to travel is innate among

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humankind.
Work from Home to Work from Hotel (holiday).
 ● Accommodation establishments are promoting their establishments as an alternative for
work from home.
● Hotels guarantee a safe place, a quiet environment, a feel of an office setup and access

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to other services.
Rise of the Mobile Wallets
Contactless and cashless transactions are the preferred mode of transactions among guests.
● Gcash

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● Shopee pay E-payment
Other trends
Search for online information will increase.
Private tours and private areas will be more
in demand.
● Google
● Youtube
G. Innovations in the Tourism and Hospitality
1.Business Environment
INDUSTRY 4.0
According to Klaus Schwab, the concept of the fourth industrial revolution is best
presented by the following products;
● Driverless vehicles
● Dimensional printing

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● Advance robotics used in industry
Smart Technology – the network of tangible and intangible

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products supported by digital systems.
Smart products – refers to the products that are adapted to the
needs of the user and can be connected to other systems

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through intelligent networking.
Smart service – refers to a combination of virtual and physical
services that offer added value to the customers.
2. BusinessModels in the Tourism
and Hospitality Industry
● The sharing or collaborative economy -The concept of the sharing economy is utilizing
unused personal resources such as spare bedrooms and car seats more efficiently.
3. Different Types of Innovation
● Advance software technology and innovative digital devices
● Repeat customers, VIPs, and high rollers who have priordata in the hotel already may be
able to check in without getting in line at the front office.
● Personalized greetings on the cellphones and inside the rooms may welcome the
guests.
● Personalized services may also be rendered to preferred guests to let them know that

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they are valued.
Technological Innovations in the Tourism and Hospitality Industry:
● Personal phones as key
● self-check-in using kiosks
 ● Electronic luggage tags Smartphone boarding passes

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● Tablets as remote controls and many others.
Innovative Collaboration
● is a service innovation where brands of different industries are collaborating to provide

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complementing service to guests.
Wearable Technology –

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● is any kind of electronic device designed to be worn on the user's body.
Virtual or Augmented Reality –
● Virtual Reality is the technology that provides almost realand/or believable experiences
in a synthetic or virtual way,while Augmented Reality enhances the real world by

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superimposing computer-generated information on top of it.
Cloud service or
other service apps –
● using remote servers to store and access data instead of relying on local hard drives and

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private data centers.
The digital Connection Service is designed to curate the airport
connection journey with route guidance based on the individual

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passenger’s location, itinerary, and profile.
Hilton Hotel launched new SMART features that allows its
guests to unlock their room using their smartphone app.