Erick Kithinji Mbaeh

HTTM 100
INTRODUCTION TO HOSPITALITY MANAGEMENT

1.1 INTRODUCTION
Over the past two generations, the hospitality industry has evolved to accommodate explosive growth, radically
changing consumer demand and a substantially different social and economic environment
The hospitality industry is a broad and multi-faceted industry that is highly mis-understood and narrowly defined
in terms of its scope. Hospitality has been associated with hotels and restaurants only; however, hospitality is
much broader entailing the reception and entertainment of guests, visitors or strangers with liberty and good will.
Hospitality has been derived from the term hospice, the term for medieval house of rest for travellers and pilgrims
giving a clear indication that hospitality does not only include hotels and restaurants but also refers to other kinds
of institutions that offer shelter, food or both to people away from their homes.
1.2 HISTORY OF THE HOSPITALITY INDUSTRY
The modern hospitality industry dates back to World War II. The booming post war economy enabled the
purchase of automobiles and travel for leisure was facilitated. Motor hotels and motels blossomed along roadsides
in order to attract these new markets. Their operations were however small businesses which offered the travellers
limited services and parking.
The quality of accommodation also varied so widely that it was not uncommon for the traveller to ask to inspect
the room before agreeing to spend the night. Kemmons Wilson as a reaction to a miserable vacation trip got into
the hospitality industry by opening his first Holiday Inn in 1952. Along other already established establishments
like Hilton, these chains aggressively franchised their brand of lodging, dramatically changing accommodation
facilities.
Although it is best known for the birth of disco, the early 1970s was also a prime time for hotel expansion.
Infrastructure development alongside aggressively done sales and marketing opened up markets in many
previously inaccessible areas. As a result, companies developed multiple brands aimed at different segments of
the travelling public. Segmentation was heaviest in the lower priced portions of the industry as budget and
economy chains attempted to distinguish themselves from their competitors.
Costs associated with borrowing funds for new hotel development soared around the 1970s and 1980s and
demand for rooms began to exceed supply. The economic recession of the early 1990s and the limitations on
travel caused by Persian Gulf War in 1991 caused demand for hotel rooms to falter once again. Hotel owners
and operators were left with few options to survive, resulting in massive loan defaults. Lenders shut off funding
to the entire industry thus. In 1993 the hospitality industry turned its first profit since 1985. As the economy
recovered from recession, demand picked up, with no new supply of hotel rooms, all demand in growth went
straight to increased occupancy improving the average daily rate (ADR). This did not surpass inflation till 1994.
New room construction began in 1995 and went on to 1997. The recovery did not last long. In 1998, the
hospitality industry began experiencing problems and new room supply did not slow. Developers faced the
challenge of equalizing supply and demand, which has been experienced to current hospitality industry
operations.

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1.2.1 INNOVATIONS IN HOSPITALITY MANAGEMENT

The challenges experienced in matching demand and supply necessitated the establishment of innovations that
management structures of establishments could adopt to curb adverse effects to the economy. Ellsworth Startler,
opened up his hotels; Startler Hotels and in his management systems, he adopted the following:
 Full closets with lights
 Bedside lamps
 Towel hooks in bathrooms
 A modified door with enough room for newspapers to be passed underneath
 Posted room rates
 Radios
 A generous supply of towels and stationery
He also built the capacity of his employees by having them learn(hospitality priciples) the Startler Service Code.
Until 1950s, travellers called long distance to the hotel or motel of their choice to reserve a room. Once the
telephone technology became available, leaders in the motor hotel industry automated the reservation system
and made (for hotel developers to run operations) the telephone call available at no cost to the traveller and other
hotels followed suit.
Conrad Hilton made reservations which made his Hilton Hotels stand out from the competition. This is because
he:
 Introduced forecasting and control methods that quickly became widely imitated
 He used a forecasting committee to predict the number of rooms that would be sold a month in advance,
a week in advance and three days in advance and scheduled employees to fit the anticipated volume of
business.
 He developed a concept called “Digging for Gold” Gold referred to unused space. Creating revenue
centres out of space that was not being used became a Hilton Signature.

1.2.2 HOSPITALITY IN RECENT TIMES

In recent years, the automation and integration of all hotels services through a property management system that
permits an examination of financial data and daily status of all property operations from the front desk to the
engineering department has revolutionized the way decisions are made in hotels.
As hotel guests demand instant worldwide communication the internet presents the current innovation in lodging
industry and internet connectivity has become a standard feature available in guest rooms.
1.3 HOSPITALITY MANAGEMENT CONCEPT AND SCOPE
Hospitality Management is a field of study that entails management concepts in creating a welcoming
environment for visiting guests.
Carl Riegel 1995 has defined hospitality management as a multidisciplinary study of concepts relating to social
science to bear on particular application in a sector handling accommodation and catering to visiting populations
and groups.
The hospitality industry is a broad category of fields within the service industry that includes lodging, restaurants,
events planning, theme parks, transportation, cruise lines and additional fields within the availability of leisure

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time and disposable income. These hospitality units contain multiple groups making relevant working
department that seek to oversee management, marketing and human resourcing for an establishment.
In recent years, the term hospitality has become increasingly popular as an all-embracing nomenclature for a
larger grouping of organizations including hotels. As a collective term, the hospitality industry may be interpreted
in a number of ways for example it conceptualized to include hotels, restaurants, pubs, cafes, guest houses,
contract catering, public sector, industrial, hospital, education, and leisure and catering. The various
categorizations that the sector can also be divided into describe the whole scope that the sector covers.
1.4 NATURE OF THE HOSPITALITY INDUSTRY AND ITS SERVICES
The nature of the hospitality industry is derived from the major characteristics that are processed in the nature
of its products. These shape the organizational design and structure and largely determine managerial policies,
procedure and behaviour.
A combination of organizational and staffing characteristics determines the management process, which in turn
has a distinctive effect on the behaviour of staff and employee relations. The characteristics of hospitality products
do not however apply to every (hotel) hospitality unit, thus, it is important to keep in mind the organizational
setting, and the diverse nature of the industry.
The hospitality industry is not a homogenous grouping of establishments as different types of establishments will
exhibit specific characteristics. The industry can thus be said to be very cosmopolitan and global hence requiring
its developers to recognize the significance of national, cultural and ethnic values as well as socio-political
influences.
2.0 HOTEL AND RESTAURANT BUSINESS
2.1 DEFINITION OF TERMS
Hotel- A hotel is an establishment (building or commercial) where people pay for lodging and where meals and
other facilities such as conference rooms are often availed. They can also be defined as high-rise establishments
offering a full range of on-premises food and beverage services, cocktail lounge, entertainment, conference
facilities, business services, shops and recreational activities.
Restaurant- A restaurant can be defined as a place where meals and drinks are sold and served to customers

2.2 HOTEL CLASSIFICATION

The hotel industry is so vast and therefore Classification is based on many criteria. Hotels may be categorized
upon different factors:

Location
Size of property
Type of Plan
Level of service
Length of stay
Type of clientele
Target market
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Based on theme
Based on Ownership and Affiliation

Location wise:

 Downtown hotel or City centre hotels: It is located in the heart of city. Tariffs are high due to their location
advantage as these hotels are near corporate offices, shopping arcade, business centre, public buildings
etc and also to the fact that rate of ROI calculated on the capital intensive property is considerably high.
Normally business clientele are preferred and it has high occupancy on week days. Best example to fit in
this category is Hyatt regency New Delhi.

 Motels or Motor hotels: Earlier it was termed as motor hotels now it is known as motels they are located
on highways, they only provide lodging to highway travellers that means no food and beverage is served
in this type of hotel they guest generally have an overnight stay and these provide more than enough
parking spaces for their vehicles. Example: KTDC motel in kerala.

 Suburban hotels: It has very quiet surrounding as they are located in suburban areas; the occupancy is
generally having high traffic on weekend. Tariffs of these hotel rates are reasonably low and therefore it
is perfect for budget travellers.

 Airport hotels: As name suggests, these situated near by the airport. They have transit guest who stay over
between flights for few hours. The guests generally prefer these types as hotel as they have to cut down
the travelling hours and have very minimum time just for their work. Tariffs are reasonable here.
Example: Centaur hotel in New delhi and Mumbai.

 Floating hotels: These are the type of hotel are generally which floats. These hotels are established on
luxury liners or ship generally located on lakes, rivers and sea. These are cruise in this rooms are generally
small and all furniture is fixed down. It has long stay guest and have all the facilities which a normal hotel
has for example food and beverage services, laundry, bar etc. Travelling is not the main purpose of this
ship. Boatels are also a kind of floating hotels they are generally a house boats. They also offer luxurious
stay to their guest. Example for floating hotel is Royal caribbean cruise ships and shikaras of Kashmir for
boatels. Tarrif rates are high

 Inns: They are located inside or outside the city. They are smaller in size and just have lodging facility. It
has reasonably very low tariff and it’s generally for budgeted clientele. The length of stay is from one to
two days.

 Rotels: These are hotel on wheel. These are in form of buses as well as trains. They provide a luxurious
hotel atmosphere to the travellers they are like hotel room and have facility of food and beverage. They
are normally used by small group of travellers. Examples are palace on wheels and Deccan Odessey.

 Resorts: These leisure hotels are located at the beaches or in the hills. They are also termed as health
resort or beach hill resort and so depending on their position and location. They are for vacationers it
generally cater a person who wants to relax, enjoy with their families. They include adventurous trip. Most
resort has high occupancy rates during peak season. Sales and revenue fluctuate from season to season.
Examples are: Raj vilas jaipur, vanya vilas ranthambore etc.

Size of Property:
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The benchmark for the categorization of hotel is by the number of rooms

available in the hotel.

 Hotel which has 25-100 rooms are known as small hotels.

 Hotel which has 100-300 rooms is known as medium sized hotel.
 Hotel which have more than 300 rooms are termed as large hotels.
 Hotels with more than 1000 rooms are known as mega hotels.
 The group that have hotels in many number of location in India and international venues are known as
chain hotels. The main hotel chains of India are: the Oberoi Group, maurya shereton, leela palace, ITDC
ashoka group, taj hotels and resorts, and some of the international chains are Hyatt regency, Le Meridien,
Shangri-La, Marriott etc.

Type of plan:

Hotels can also be classified by the type of plans which they offer. A plan is a combination of room tariff and
meals. There are different hotels with different plans. The hotels decide plans according to the type of clientele
and their duration of stay. These plans are:

 European plan: Just lodging charges of a room is included. In this type of plan a guest can to eat wherever
and whenever he or she wishes to eat.

 Continental plan: It includes room tariff as well as continental breakfast of the guest. This plan is
beneficial for business travellers or tourists.

 American plan: It includes room tariff and three time meal i.e. breakfast, lunch and dinner.

 Modified American plan: It include room tariff and two time meal which is breakfast and either lunch or
dinner. This plan is beneficial for economic tourists.

Level of service:

This is the most important criteria for classifying hotels. Hotels can be classified into economy, mid market or
semi economic hotel and luxury hotels. This is done on the basis of the level of
service they offer.

 Economy Hotels: these are also known as Budget hotels in this hotels guest is provided by a clean and
comfortable room with the minimum required amenities.

 Mid market hotels: It offers small living room with appropriate furniture and small bed room with king
sized bed they facilities provided in this hotel are swimming pool, health club etc. These hotels are called
as suite hotels.

 Luxury hotels: These types of hotels provide world class service to the guest. The room has entire facility
with antique furniture and special artwork. These hotels have variety of restaurant and lounges; it even
has concierge service and business centre, shopping arcade, sports facility etc. The prime market for these

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hotels are mainly celebrities, business man, corporate head and high ranking political figures. Example:
Hyatt Regency, Mumbai.

Length of Stay:

The classification of hotel is also classified by the length of stay of a guest. It is categorized into transient,
residential and semi residential hotels.

 Transient Hotel: Airport hotels can be termed as transient hotels. In this type of hotel the guest stays for
a day or even less. The occupancy rate is usually very high.

 Residential hotels: In this type of hotel guest stay for a minimum period of one month and up to a year.
The lease is signed with a guest and rent can be paid on monthly or quarterly basis. They room is provided
bed room and kitchenette. The tariff is reasonably low in these types of hotels.

 Semi residential hotels: The hotel which include features of both transient and residential hotel.

Type of clientele:

Hotels are categorized into group hotels, commercial hotels and family hotels. This categorization is mainly based
on the type of stakeholders.

 Group hotels: these types of hotel generally cater to groups and therefore use American plans.
Vacationers are their biggest clientele.

 Commercial hotels: these types of hotel cater mostly to business man and therefore use European plan
in their hotels.

 Family hotel: these types of hotels are situated in resort cities and they cater families therefore they use
American plan.

Target Market:

 Commercial hotel: they target clientele are businesses men who visit these types of hotels for business
purpose. These hotels are located in busy commercial areas especially in the heart of city therefore it gets
high business.

 Convention hotels: these hotels are used for conventional purpose. Seminars, conferences, events,
education and job fairs, exhibitions, events take place here. They have large convention complex and
cater to group of people who are there to attend these events. Hotel with largest convention centre in
India is Le meridian, Cochin.

 Suite hotels: These hotel offer compact kitchenette along with rooms. They cater guest who has to stay
away from home due to their business they keep on relocating from one place to another. These types
of clientele are lawyers and executives.

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 Casino hotels: This type of hotel has gambling facilities with guest room, food and beverage. These hotels
operate 24 hours a day and 365 days a year. They cater leisure and vacation travelers. Las Vegas in United
State is Famous for Casino hotels.
 Airport Hotels: - These types of hotels typically target business clientele, airline passengers with overnight
travel layovers or cancelled flights and airline personnel. Some hotels might give free transport between
hotel and airport. Some hotels also provide meeting facilities to attract guests who travel to a meeting by
air and wish to minimize ground travel. Another attraction of these hotels is instead of charging the guest
on a daily basis guest can also pay for their room on a hourly basis.
 Suite Hotels: - These kinds of hotels are the latest trend and the fastest growing segments in the hotel
industry. Main attraction of these hotels is guestrooms with a living room and a separate bedroom. In
exchange for more complete living room suite hotels generally have fewer and more limited public areas
and guest services than other hotels . This also helps keep suite hotel's guestroom prices competitive in
the market .Professionals such as accountants, lawyers, business men and executives find suite hotels
particularly attractive as they can work and also entertain in an area besides the bedroom.
 Extended Stay Hotels: - Extended stay hotels is somewhat similar to the suite hotels, but usually offers
kitchen amenities in the room . These kind of hotels are for travellers who want to stay more than a week
and does not want to depend on the service of the hotel . Extended service hotels usually does not provide
any F & B service or Laundry service etc. These kind of hotels are considered by guests as "Home away
from home "
 Apartment Hotels: - Apartment / Residential hotels provide long-term or permanent accommodation for
Guest. Usually guest makes a lease agreement with the hotel for minimum of one month up to a year.
These lease agreements are renewed on a yearly basis. Guest rooms generally include living room ,
bedroom, kitchen , private balcony , washing machines , kitchen utensils etc. Residential hotel also
provided Housekeeping , laundry , telephone and in some hotels a restaurant and lounge etc will be
present on the premises.
 Resort Hotels: - Resort hotels are usually located in the mountains, on an island , or in some other exotic
locations away from city's . These hotels have recreational facilities , scenery , golf , tennis , sailing , skiing
and swimming . Resort hotels provide enjoyable and memorable guest experiences that encourage guest
to repeat to the resort.
 Bed and Breakfast Hotels :- These are houses with rooms converted into overnight facilities , this can
size up to 20 to 30 guest rooms . They are also known as 'Home Stay's'. The owner of the B&B usually
stay on the premises and is responsible for serving breakfast to guest . Due to the limited services offered
at these hotels the price for room is very less than any full service hotel.
 Timeshare and condominium Hotels: - Another new type or segment of the hospitality industry is the
timeshare hotels. These are sometimes referred to as " Vacation-interval" hotels . Timeshare hotels are
where the guests who purchase the ownership of accommodations for a specific period .These owners
may also have the unit rented out by the management company that operates the hotel . Condominium
are similar to timeshare but the difference between the two lies in the type of ownership. Units in
condominium hotels only have one owner instead of multiple owners , each for a limited amount of time
each year. In a condominium hotel, an owner informs the management company if when he/ she wants
to occupy the unit.
 Casino Hotels :- Hotels with gambling facilities may be categorized as a distinct group called Casino
Hotels .Although the food and beverage operations in casino is luxurious their functions is secondary to
and supportive of casino operations. Casino hotels attract guest by promoting the gambling and other
entertainments.
 Conference Centres: - These type of hotels focus on meeting and conferences and overnight
accommodation for meeting attendees. They also provide High quality audiovisual equipments, business
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services , flexible seating arrangements , flipchart etc. These hotels mostly located outside the
metropolitan areas and have facilities like golf , swimming pools , tennis courts , fitness centres , spas etc.
 Convention Centres: - Convention hotels are larger in size compared to conference centres and likely to
have more than 1500 rooms . These hotels are huge and have sufficient number of guest rooms to house
all the attendees of most conventions, even the size of the meeting rooms , ball rooms , exhibit rooms are
quite huge .They usually cater to convention market for state , regional , national, and international
associations .

Based on Theme:

 Ecotels: These hotels are ecofriendly and amenities provided in these hotels are environmental friendly.
Orchid Mumbai is Asia first and most popular five star ecotel.

 Boutique hotels: This hotel offer themed rooms to the guests. They provide stylish accommodation and
antique furniture. These hotels cater to corporate travellers. The Park Bangalore is a boutique hotel in
India.

 Spas: This is a luxury hotel resort which offer therapeutic bath, massage and therapies along with other
hotels offerings. Ananda spa in Himalaya is the most popular Spa.

 Heritage hotel: these are hotels which are converted from heritage properties. These hotels give glimpse
of the earlier tradition of a particular region. In this hotel rooms are offered with their history. Traditional
cuisine is served to the guest and entertainment is done by folk artist. Jai Mahal palace in Jaipur.

Based on Ownership and Affiliation

Ownership and affiliation provide another means by which to classify hotel property. There are two types one is
Individual and another is chain hotel.

 Independent Hotels: - They do not have identifiable ownership or management affiliation with other
properties. That means these properties don’t have any relationship to another hotel regarding policies,
procedures, marketing or financial obligations. Example for the same would be family owned and
operated hotel that is not following any corporate policies or procedures. The advantage of an individual
property is its autonomy. An independent hotel however does not get the advantage of board advertising
exposure or management insight and consultancy of an affiliated property.

 Chain hotels: -These hotels are characterized this kind of ownership usually imposes certain minimum
standards, rules, policies and procedures to restrict affiliate activities. In general the more centralized the
organization the stronger the control over the individual property. Some chains have strong control over
the architecture, management and standards of affiliate properties. Others concentrate only on marketing
, advertising and central purchasing

2.3 GRADING IN THE HOSPITALITY INDUSTRY (18/09/2013 class begin here)

Grading the hospitality industry has been done using the various categorizations of hotels and restaurants. It is
done to differentiate service quality between the various facilities and establishments. Two grading systems are
used:

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Star rating
Diamond rating
Hospitality establishments apply for evaluation voluntarily. Depending on the quality of services it offers, an
establishment can receive 1-5 diamonds. Brand hotel companies operating internationally often rely heavily on
uniform standards that they have developed to ensure that their guests have a comfortable experience.

Grading attracts the examination of some basic operating criteria that include:

Fire protection
Housekeeping and maintenance
Room décor and ambience
Management
Public areas
Guest room security
Bathrooms
First an inspector typically stays one or more times anonymously at the premise to evaluate the total guest
experience. The inspector meets with the owner/ general manager to collect factual data about the property and
conduct a physical examination of the entire property, including grounds, landscaping, building and other
exterior elements.
A random cross section of guest units is evaluated for quality and conditions of the furnishings and décor. At the
four and five diamond level, the inspector focuses his attention more intently on the services provided to the
guest. At the conclusion of inspection, the inspector provides a written summary of inspection and rating decision.
Once a property is approved and included in the overall grading system (AAA) it is re-evaluated at least once a
year.
Five Star Hotels
These are luxurious hotels located mostly in the big cities. These hotels provide all the modern facilities for
accommodation and recreation matching international standards in hospitality. The architectural features and
general features of the building should be exceptionally good. There should be ample parking facilities. The
hotel should be centrally air conditioned. The ambience and décor of the hotel should be good. There should
be lounge or seating area in the lobby with Door man on duty. There should be reception facility with reservation
and information facility. The staff should be well trained and in proper uniform. Proper standards of hygiene
and sanitation must be followed.
All the rooms should be spacious and should have attached bathroom. The rooms should have television with
cable. At least one room for the differently- abled guest should be provided.
Verification of guest, CCTV installed at strategic locations, Metal detectors (door frame or hand held), under
belly scanners to screen vehicles and X-Ray Machine are safety and security measures to be taken by the hotels.
There should be provision of business centre, swimming pool, conference, health and fitness facility, souvenir
shop, utility shop, book shop and left luggage facility is mandatory. The hotel must have one multi-cuisine
restaurant cum coffee shop, specialty restaurant and 24 hr. room service and bar.
Four Star Hotels
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The architectural features and general features of the building should be exceptionally good. There should be
ample parking facilities. The hotel should be centrally air conditioned. The ambience and décor of the hotel
should be good. There should be business centre, left luggage facility. All the rooms should be spacious and
should have attached bathroom. The rooms should have television with cable. At least one room for the
differently- abled guest should be provided.
There should be lounge or seating area in the lobby with Door man on duty. There should be reception facility
with reservation and information facility. The staff should be well trained and in proper uniform. Proper
standards of hygiene and sanitation must be followed.
There should be one multi-cuisine restaurant cum coffee shop, one specialty restaurant and 24 hr. room service
and bar.
Verification of guest, CCTV installed at strategic locations, Metal detectors (door frame or hand held) and under
belly scanners to screen vehicles are safety and security measures to be taken by the hotels.

Three Star Hotels

These are mainly economy class hotels located in the bigger and smaller cities and catering to the needs of budget
travelers. The architectural features and general features of the building should be good. There should be ample
parking facilities. At least 50% of the rooms should be air conditioned. The ambience and décor of the hotel
should be good. All the rooms should have attached bathroom. The rooms should have television with cable. At
least one room for the differently- abled guest should be provided.
There should be lounge or seating area in the lobby with Door man on duty. There should be Reception facility
with reservation and information facility. The staff must be well trained and proper standards of hygiene and
sanitation must be followed. There should be one multi-cuisine restaurant cum coffee shop and 24 hr. room
service.
Verification of guest, CCTV installed at strategic locations, Metal detectors (door frame or hand held) are safety
and security measures to be taken by the hotels.

Two Star Hotels

These hotels are most available in the small cities and in particular areas of larger cities. Catering to the
backpacker tourist traffic, these hotels provide all the basic facilities needed for general accommodation and
offers lowest prices. There should be lounge or seating area in the lobby with Door man on duty. There should
be Reception facility with reservation and information facility. The staff must be well trained and proper standards
of hygiene and sanitation must be followed. At least 25% of the rooms should be air conditioned. All the rooms
should have attached bathroom. At least one room for the differently- abled guest should be provided. There
should be minimum one dining room serving all meals. Room service not necessary.

One Star Hotels

These hotels provide most basic facilities and services. These hotels are best when looking for cheapest available
accommodation option (apart from camps and hostels). There should be lounge or seating area in the lobby with
Door man on duty. There should be Reception facility with reservation and information facility. The staff must
be well trained and proper standards of hygiene and sanitation must be followed. At least 25% of the rooms
should be air conditioned. All the rooms should have attached bathroom. At least one room for the differently-
abled guest should be provided. There should be minimum one dining room serving all meals and Room service
not necessary.

Star Ratings Explained

Five Star

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 These are hotels that offer only the highest level of accommodations and services.
 The properties offer a high degree of personal service. Although most five star hotels are large properties,
sometimes the small independent (non-chain) property offers an elegant intimacy that cannot be achieved
in the larger setting. The hotel locations can vary from the very exclusive locations of a suburban area, to
the heart of downtown.
 The hotel lobbies are sumptuous, the rooms complete with stylish furnishing and quality linens. The
amenities often include: VCR′s, CD stereos, garden tubs or Jacuzzis, in-room video library, heated pools
and more.
 The hotels feature up to three restaurants all with exquisite menus. Room service is usually available 24
hours a day. Fitness Centers and valet and/or garage parking are typically available. A concierge is also
available to assist you.

Four Star

 These are mostly large, formal hotels with smart reception areas, front desk service and bellhop service.
The hotels are most often located near other hotels of the same caliber and are usually found near
shopping, dining and other major attractions. The level of service is well above average and the rooms
are well lit and well furnished. Restaurant dining is usually available and may include more than one
choice. Some properties will offer continental breakfast and/or happy hour delicacies. Room service is
usually available during most hours. Valet parking and/or garage service is also usually available.
Concierge services, fitness centers and one or more pools are often provided.

Typical National Chains: Hyatt, Marriott.

Three Star

Typically these hotels offer more spacious accommodations that include well appointed rooms and decorated
lobbies. Bellhop service is usually not available. They are often located near major expressways or business areas,
convenient to shopping and moderate to high priced attractions. The hotels usually feature medium-sized
restaurants that typically offer service breakfast through dinner. Room service availability may vary. Valet parking,
fitness centers and pools are often provided.

Typical National Chains: Holiday Inn, Hilton.

Two Star

Typically smaller hotels managed by the proprietor. The hotel is often 2 - 4 stories high and usually has a more
personal atmosphere. It′s usually located near affordable attractions, major intersections and convenient to public
transportation. Furnishings and facilities are clean but basic. Most will not have a restaurant on site but are usually
within walking distance to some good low-priced dining. Public access, past certain hours, may be restricted.

Typical National Chains: Days Inn, LaQuinta Inn.

One Star

Usually denotes independent and name brand hotel chains with a reputation for offering consistent quality
amenities. The hotel is usually small to medium-sized and conveniently located to moderately priced attractions.
The facilities typically include telephones and TV′s in the bedroom. Some hotels offer limited restaurant service;
however, room service and bellhop service is usually not provided.

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2.4 GUEST TYPES AND GUEST NEEDS

The sole reason for the existence of the hospitality industry is to provide services to people. Fulfilling a need,
whether it is a room for the night, a meal, or an activity, a hotel is there to serve people. It is important to
understand the nature of the customer (guest). The guest at any hospitality establishment can be from any walk
of life. The industry has thus established its own unique way of classifying and categorizing its guests. It has been
realized that it is with the understanding of whom these guests are, and what their characteristics are that the
industry can serve them better.
Guests are typically grouped according to their reasons for travel.
 Vacation Guests
 Transient business
 Conference attendance
 Personal/ Family related reasons
 Weekend trip
 Government
 Military business
 Residential relocation
Another broad way guests can be grouped is in terms of market segments
 Group Market Segments: These are segments that characterize visitation to an establishment of more
than one guest. These include:
Corporate Segment- These consist of for-profit companies. They may have more money to spend than
non-profit or business segments. As a result, corporate business is often more concerned with content
than with cost. This market segment frequently pays higher rates than others to ensure quality programs.
(Manufacturing, construction, distribution, retail, publishing, health, insurance, media)
Association Segment- Associations are, by nature, groupings of individuals or companies that share
common purposes or goals. They are in a way, market segments within a market segment. Individuals
can band together in association to share ideas, hobbies, beliefs, or any number of things. Companies can
band together in association for research, educational, political or public relations reasons. This segment
may be more cost conscious than the corporate segment because its members often pay for services out
of their own pockets. Associations can have large membership or require large facilities. (local, state,
regional, national, international)
Primary segment- This comprises other segments that do not fall easily into corporate or association
segments. There are five primary components: social (weddings, proms, fund raisers, bars), military (re-
unions, ward ceremonies), educational (continuing education, certification classes, training), religious
(revivals, enlightenment gatherings), and fraternal (fraternities, sororities) (SMERF)
(Fraternity-people with something in common. Sorority-society for women students)

 Transient Market Segments- This is the guest type that attracts individual stay and visitation. They include:
Business Segment- This is a guest who stays at a hotel primarily because of its location in relation to
another organization. The general term business can mean anything but these guests have a primary
purpose other than relaxation and recreation. This guest makes his hotel choices based on many things,
but one of the most common is called guest brand loyalty which is the institutional preference by
consumers for a product or service based solely on a brand name or logo.

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Pleasure Segment- This is a guest who stays at a hotel because of its proximity to an attraction and/ or
because of a signature attraction in the hotel itself. This signature can be an event, activity, or facility
identified with a specific hotel.
In summary the diagram below can be used to show guest types in the hospitality industry.

Corporate
Busines
s

Associatio Guest
n Group Demand Transient

Pleasur
Primary e

2.5 GUEST SERVICE IN HOTEL AND RESTAURANT OPERATIONS

To define guest services, we must understand customer service. While customer service is aimed at serving the
current customers, the guest services focus to service those that still haven't subscribed or signed up for an
establishment’s products. It is a way of attracting these people to become customers through guest services.
It can also be defined as the process of ensuring guest satisfaction with a product and or service. Guest service
takes place while performing a transaction for the customer such as making a sale or returning an item. The
service offered can take the form of an inter-person interaction, a phone call, and self-service systems or by other
means.
Guest service is an important part of maintaining ongoing client relationships that are key to continuing revenue.
This has necessitated many organizations to work hard to increase their customer satisfaction levels. As much as
there many guest service representatives, yet, it is the guest service personnel that directly interact with the guests
thus forming customer’s perception of the company as a whole.
2.5.1 Personal Development Skills
Some changes are forced upon people by circumstances beyond their control, others occur because of life events
or through choice. There have been identified skills you need to enable you to set goals and to enable personal
empowerment. These skills can help you to make relevant, positive and effective choices and decisions for your
future.

Personal development is a lifelong process which enables people to assess their skills and qualities, to consider
their aims in life and to set goals which will help them to maximise their potential. Although early life
development and early formative experiences within the family, at school, etc. can help to shape us as adults,
personal development should not stop later in life. Personal development entails information and advice that is

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designed to help one to think about personal development and ways in which one can work towards goals and
full potential.
Personal Empowerment
Personal empowerment involves developing the confidence and strength to set realistic goals and fulfil your
potential. Everyone has strengths and weaknesses and a range of skills that are used in everyday situations, but
all too often people remain unaware of, or undervalue, their true abilities.

It is an individual’s ability to take control of their life by making positive choices and setting goals; developing self
awareness, understanding your strengths and weaknesses, taking steps to set and achieve goals - both short and
longer-term, developing new skills, and acts to increase confidence, amongst others. All these acts and concepts
depict personal empowerment.
Emotional Intelligence
Many of us are aware of IQ (Intelligence Quotient) an individual’s score when performing a series of tests
designed to measure intellectual intelligence. Higher IQs indicate better cognitive abilities - these include the
ability to learn and understand - and people with higher IQs are more likely to do well academically, without
exerting the same amount of mental effort as those with lower IQ scores. A logical assumption, therefore, is that
people with higher IQs will be more successful at work and through life. This assumption has been proven
incorrect – there is more to success than simply being ‘clever’.

Emotional Intelligence (EI or EQ – Emotional Quotient) is a more modern concept and was only fully developed
in the mid-1990s. Emotional Intelligence is the measure of an individual’s abilities to recognise and manage their
emotions, and the emotions of other people, both individually and in groups. Proper guest service requires
individuals such as these for personnel so that customers are effectively communicated to and their individual
needs are met as well.
Self-Motivation
Self-motivation is, in its simplest form, the force that drives you to do things. Self-motivation is far from being a
simple topic that scholars have delved into to try and give an expounded meaning.

Self-motivation is a key life skill and is something that the guest service personnel should adopt as this pushes
one to achieve set goals, feel more fulfilled and improve overall quality of life. This ensures that there is also
more organization, good time -management skills and more self-esteem and confidence.
Understanding and developing your self-motivation also helps guest service personnel to take control of many
other aspects of their work.
Personal Presentation
Personal presentation is all about marketing YOU, the brand that is you. What others see you do and hear you
say will influence their opinion of you – so personal presentation is about painting yourself in as positive a light
as possible – always.

Organisations spend a lot of time and money working on their image, developing their brand and producing as
many positive signals as possible. Staff in organisations should know that everything they do is marketing for the
organisation, every email they send, every phone call they take, every time they interact with a client or

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customer. Organisations also spend a lot of time and money recruiting and training the right kind of people to
project the right kind of image.
Time Management
'Time Management' is a misleading term. Although science fiction has long been fixated with the concept of
managing time in various ways (for example, time travel and the ability to alter the speed of the passing of time)
nobody can manage time.

Guest service requires proper time management with schedules being carried out as per the time plan. Service
personnel should be individuals with the ability and self drive to do things at the right time, putting in mind the
sensitive nature of services which form the core products in the hospitality industry.

3.0 FOOD AND BEVERAGE MANAGEMENT IN HOSPITALITY FACILITIES

3.1 INTRODUCTION

It is crucial to produce food and beverage products that conform to quality standards. Quality in food and
beverage operations is a constant concern thus requiring management’s constant supervision and evaluation of
service products. Personnel in food and beverage operations must also be trained to follow standards that an
establishment conforms to.

Quality in service standards therefore must be incorporated into production activities through standard recipes,
purchase specifications and proper tools and equipment.

3.2 FOOD AND BEVERAGE OPERATIONS

Food and beverage operations in hospitality facilities revolve around the food cycle that includes processes of:

 Purchasing

Purchasing entails identification of reputable suppliers of products of quality, as those stipulated by the
organization. Quality products require quality inputs. These should also be firms that guarantee quality and
proper specifications should be given by the hospitality outlet or establishment.

 Receiving

This entails accepting what has been purchased by the hospitality facility. It is important to cross check goods
being received against specifications given. Only those that conform to specifications should be accepted as this
determines the quality of products customers utilize.

 Storing

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Storage is the holding of purchased products as they await to be utilized. Proper storage must be enhanced to
avoid associated costs as well as wastage through food spoilage. Those products that need refrigeration should be
stored under the right cool temperatures and there should be a specified limit of time under which these products
are stored.

Depending on how these are stored as well, prevalence of food posing for example in hospitality facilities offering
catering is either curbed or enhanced. Proper management and running of operations is therefore necessary in
the storage section.

 Issuing

This refers to supply to department according to specifications from the storage area.

 Preparation

 Cooking

 Serving

 Consumption

3.3 MANAGEMENT FUNCTIONS AND CONCEPTS

Every organization, regardless of size, has developed and implemented its own management concepts in order
for it to run smoothly and accomplish the vision, goals and objectives it has set forth. As such, the basic functions
of management, broken down into four different areas, allow for it to handle the strategic, tactical and operational
decisions for the organization. The four functions of management are: planning, organizing, directing, and
controlling.

Planning

Planning is the core area of all the functions of management. It is the foundation upon which the other three
areas should be build. Planning requires management to evaluate where the company is currently, and where it
would like to be in the future. From there an appropriate course of action to attain the company's goals and
objectives is determined and implemented.

The planning process is ongoing. There are uncontrollable, external factors that constantly affect a company both
positively and negatively. Depending on the circumstances, these external factors may cause a company to adjust
its course of action in accomplishing certain goals. This is referred to as strategic planning.

During strategic planning, management analyzes internal and external factors that do and may affect the company,
as well as the objectives and goals. From there they determine the company's strengths, weaknesses, opportunities
and threats. In order for management to do this effectively, it has to be realistic and comprehensive.
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Organizing

Getting organized is the second function of management. Management must organize all its resources in order
to implement the course of action it determined in the planning process. Through the process of getting
organized, management will determine the internal organizational structure; establish and maintain relationships,
as well as allocate necessary resources.

In determining the internal structure, management must look at the different divisions or departments, the
coordination of staff, and what is the best way to handle the necessary tasks and disbursement of information
within the company. Management will then divide up the work that needs to be done, determine appropriate
departments, and delegate authority and responsibilities.

Directing

The third function of management is directing. Through directing, management is able to influence and oversee
the behavior of the staff in achieving the company's goals, as well as assisting them in accomplishing their own
personal or career goals. This influence can be gained through motivation, communication, department
dynamics, and department leadership.

Employees that are highly motivated generally go above and beyond in their job performance, thereby playing a
vital role in the company achieving its goals. For this reason, managers tend to put a lot of focus on motivating
their employees. They come up with reward and incentive programs based on job performance and geared
toward the employees' needs.

Effective communication is vital in maintaining a productive working environment, building positive

interpersonal relationships, and problem solving. Understanding the communication process and working on
areas that need improvement help managers to become more effective communicators. The best way to find
areas that need improvement is to periodically ask themselves and others how well they are doing.

Controlling

Controlling is the last of the four functions of management. It involves establishing performance standards based
on the company's objectives, and evaluating and reporting actual job performance. Once management has done
both of these things, it should compare the two to determine any necessary corrective or preventive action.

Management should not lower standards in an effort to solve performance problems. Rather they should directly
address the employee or department having the problem. Conversely, if limited resources or other external
factors prohibit standards from being attained, management should lower standards as needed.

The control process, as with the other three, is ongoing. Through controlling, management is able to identify any
potential problems and take the necessary preventative measures. Management is also able to identify any
developing problems that need to be addressed through corrective action.

In order for management to be considered successful, it must attain the goals and objectives of the organization.
This requires creative problem solving in each of the four functions of management. More so, success requires
that management be both effective and efficient. Therefore, it needs to not only accomplish those goals and
objectives, but do it in a way that the cost of accomplishment is viable for the company.

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3.4 FOOD AND BEVERAGE SERVICE AREAS

These include:
-Restaurants.
Restaurants can be divided into:-

Speciality Restaurants
This is a restaurant that concentrates on one special cuisine, that is, one particular type of food e.g. sea food
restaurant.

Theme Restaurants
This is a restaurant where the décor is based on a particular distinction/theme e.g. Theatre restaurant

Ethnic Restaurant
This is a restaurant that targets a particular race of people e.g. Chinese restaurant
Feature of Restaurants
Service of special exotic cuisines with a highly priced menu
High investment
Platter to platter service
They offer guest bookings
-Coffee Shop
These are outlets that operate 24 hours, offering multi-cuisine that is economically priced. Service is pre-plated
service with high turn-over. These do not have guest bookings as compared to restaurants that have guest
bookings.
-Bar
These are outlets that sell alcoholic and non-alcoholic beverages, with restricted entry with rules varying from
state to state. They offer cozy comfortable environment with service being done at the table and the counter as
well by a bartender or barman. Bars can be categorized into two types;

On Shop Bars- These are bars where liquor is purchased and consumed on the same premise
Off Shop Bars- These are bars where liquor is purchased and consumed elsewhere
-Pub (Public House)
This is an outlet where people dine with beer. It is an English concept where beer along with authentic English
foods like steak is served.
-Banquet

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This is a concept of people gathering to do something together. It can be termed as a functional catering where
people celebrate any occasion together, catering to a large number of people within a specified time.
Features
These have the highest earning in Food and Beverage
They cater to a large number of people at a time
Banquets are used under the following functions

Formal Gatherings- These are gathering amongst people for some official purpose or any other serious
purpose where the guests have to follow many protocols. Seating arrangements are done according to the
respective names of guests and they are escorted to their seats with food being served at the table.
Informal Gatherings- These are gatherings amongst friends and relatives where everyone knows each
other

-Grill Rooms
These are areas where grilled food items are served. Grilling is generally done over fire and people normally
have a view of the food being grilled.
-Barbeque
These are areas where cooking is done over open charcoal fire especially meats and served at an open place,
which could be at a pool side, garden, lawns etc.
-Cake Shop
These are outlets selling cake items. Hotels that have bakeries sell their baked foods at these outlets
-Vending Machine
These are machines that operate automatically thus dispensing food and beverage items; aerated beverages,
coffee, tea etc and are mostly installed in cafeterias, airlines, railways etc
-Snack Bar
These are areas where snacks are served normally at the counter.
-Kiosk
These are stalls opened for specific items like chocolates, soft drinks, books, flowers etc
-Discotheque
These are entertainment venues or clubs with recorded music played by DJs through a PA system, rather than
an onstage band serving alcoholic as well as non-alcoholic beverages along with light food items
-Home Delivery/Take away
These are outlets that deal with delivery of food. They are stand alone restaurants (kitchen only) that emphasize
on quick preparation of food and its delivery system. They have no seating arrangements and staff in these outlets
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includes chefs, order taker, cashiers and delivery boys. The order taker takes the order over the phone or of a
walk in guest, notifies the kitchen and hands over the food packets to the guests or delivery boys. He can also
take the responsibility of the cashier at the counter. Food is normally served in plastic containers, aluminium
foils, plastic bags etc. These should however not be confused with restaurants that provide services of home
delivery.
-Coffee Bars
These are outlets which serve single beverages, and service can be formal or informal depending on the outlet.
-Chai Bars
These are the same as coffee bars serving single beverages
-Drive Inns
These are outlets which can be part of a food joint, hotel or restaurants which have an open counter, wher
travelers who are passing by the outlet can get their food packed.
-Quick Service Restaurant (QSR)
These are the same as other restaurants but the service is faster, service may be informal and the food can be
served through counters.
-Bistro
These are outlets that are very old, basically small restaurants serving economically priced dishes. These generally
have home cooked dishes cooked in robust earthy dishes and have slow preparation. They have simple menus,
small and prepared in quantity.
-Brasserie
These are outlets of French origin, meaning restaurants with relaxed, upscale settings which serve single dishes
and other meals. These can have professional service, printed menus and traditional white linen.
-Drive Through
These are outlets that provide facility of purchasing without buyers leaving their vehicle. Orders are placed
through a microphone and picked up through a window, the cars are generally lined one after another and as
they drive through, ready orders are picked at a window. Orders are brought by the server called carhop. They
have signs showing where the buyers to pick what etc.
3.5 COORDINATION OF F & B DEPARTMENT WITH OTHER DEPARTMENTS

F &B service department is the selling point of the hotel. To enable maximum and efficient selling other
departments in the hotel also play important roles.
 Coordination with Food Production
This has the most important role to play. Items prepared here are what the service personnel sell. Great care and
planning must go into the development of the final menu which in turn is understood, tasted and sold.
 Coordination with Kitchen Divisions
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-Pantry/ Still room: This is where hot beverages, sandwiches, milk shakes, juices etc are prepared
-Garde Manger: This is where salads, cold cuts are availed
-Specialty kitchen: These are places where specific types of food are prepared
-Bakery and confectionary: This is the section where bread rolls, cakes and pastries are prepared
-Butchery and Carvery: This is the section where fish and meats are carved, de-boned, filleted e.t.c
 Coordination with Kitchen Stewarding
This department comes with the admin of the kitchen and is involved in general cleanliness and upkeep of the
kitchen. It has a pot wash where large vessels are cleaned and a wash area where services equipment is cleaned,
washed and stored. It also deals with storage and issuance of all services and kitchen equipment. This is headed
by the Chief Executive Steward assisted by an assistant kitchen steward

 Coordination with the Bar/ Service Bar

Although this comes with the F &B department, dining room or restaurant coordinates with it for all alcoholic
beverages required as well as for canned juices, aerated waters and tobacco
 Coordination with Accounts
Service department does not deal directly with accounts but indirectly through various outlet cashiers. These
have details on credit card lists, discount policies etc
 Coordination with House Keeping
This takes care of the general up keep of the hotel. It undertakes cleaning for all public areas. Service personnel
may call housekeeping staff to take care of spillages, accidents etc. They are in charge of laundering guests clothes,
organizing flower arrangements

 Coordination with the engineering department

This dept takes care of air conditioning, lighting, plumbing and general maintenance. Communication is done
through a maintenance order book and reminders are used if required. It is headed by a chief engineer who is
assisted by an assistant engineer. This department is also involved in reservations and repairs which are done
periodically.
 Front Office
This is the front-of-the-house position and it deals with guests directly. The check in, check out, billing,
information reservation, bell desk, telephone, etc all come under this department. It may also be incharge of a
health club, beauty parlor, travel desk, business centre etc
All communication on guests is obtained from the front office. It is headed by the front office manager and is
assisted by lobby managers, duty manager, guest relations, executive front office assistants, telephone operators,
bell captain, front office cashiers etc.

 Coordination with Stores

This may be one or it may be divided into separate areas such as food, liquor, materials, perishables, etc. It may
get its supplies through the purchase department by floating tenders. The service department gives stores
department its requirement of food items through the corresponding indent book
 Coordination with the personnel department
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This department deals with all areas of staff requirements and employment. Services personnel get their leave
applications processes and leave cards updated by this department. It also handles discrepancies in the time card,
job descriptions and specifications are drawn up by this department in accordance with the requirements from
individual departments.
 Coordination with the security department
This dept handles the safety aspect of the organization. It is required to conduct safety and first aid, fire fighting
etc. It also looks into vehicle parking and is in close contact with the local police to look out for unknown
criminals. Service personnel may use them in case they have to evict unruly persons, drunks, those with unpaid
bills etc
3.6 ROLE OF KEY STAFF IN F & B DEPARTMENT

Food and Beverage Manager

Reports to the general manager

Purchasing of food and beverage materials
Maintaining professional standards
Assisting human resource department
Holding meetings with departmental heads
Restaurant Manager

Reports to the general manager

Helps in hiring staff
Handles guest complaints
Helps in menu planning
Briefing staff
Head Waiter

Reports to the restaurant manager

Training of staff
Menu planning and control
Makes reservations
Supervisory work
Station Waiter

Reports to the head waiter

Takes orders
Serving food and beverage items
Bus Boy

Reports to the steward

Brings dishes
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Helps in service of silver ware

Wine Butler

He is responsible for the service of alcoholic drinks during service and is also a sales person
Room Service Order Taker

Reports to the room service captain

Takes orders from guests in rooms
Understanding the working of the department
Handling guest complaints
Cashier

Makes cheeks, sales and accounts summary

Corrects erroneous bills
Hostess

Reports to the outlet captain/manager

Receives guests
Assists station waiters
Handles written work
4.0 HOSPITALITY AMENITIES (AN UNDERSTANDING OF)

It is necessary to provide different amenities to guests in hotel in order to get their repeated presence. Generally
every hotel provides some amenities in hotel room. The general hotel amenities are shops, services, and supplies.
But exact amenities will change from one hotel to other hotel. Large and expensive hotels can provide most guest
amenities, if it is small and less expensive hotel, it can provide only basic amenities.

 Generally there are hotel towels and linen in every hotel room. Extra blankets, ice bucket and drinking
glasses are provided by some of the hotel establishments. Ice machines also are provided to guests by
most of the hotels.
 In room mini bar, coffee maker and small bottles of the shampoo and lotion are some other common
hotel amenities. Some of the hotels supply the guests with fluffy terry cloth robes and perhaps hotel
slippers, and soaps and more.
 Television with free movie channels, higher priced accommodation, game player system are provided in
some budget hotels to guests. Providing mini kitchenettes like refrigerator and microwave, is popular in
room hotel amenities. Internet access in a room is another amenity in a some hotels.
 Food delivery from the kitchen is a standard hotel amenity.
 Providing laundry service is a common amenity in some hotels.
 Some of the hotels provide some kids programs include arts and crafts and sports related activities such
as swimming pools is a common amenity at hotels.

These are just a few of the different types of amenities which are provided in different hotels in order to provide
more comfort for guests.

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4.1 LEISURE AND RECRATION

Defining leisure, play, and recreation provides us as leisure professionals with a strong foundation for the
programs, services, and facilities that we provide. While we might disagree on the standard definition of leisure,
play, or recreation, we are all concerned with providing an experience for participants. Whether we work in the
public, private nonprofit, or commercial sector, all three concepts are driving forces behind the experiences we
provide. Table 1.1 outlines the basic definitions of leisure, play, and recreation.

Definitions of Leisure
There is debate about how to define leisure. However, there is a general consensus that there are three primary
ways in which to consider leisure: leisure as time, leisure as activity, and leisure as state of mind.
Leisure as Time
By this definition leisure is time free from obligations, work (paid and unpaid), and tasks required for existing
(sleeping, eating). Leisure time is residual time. Some people argue it is the constructive use of free time. While
many may view free time as all nonworking hours, only a small amount of time spent away from work is actually
free from other obligations that are necessary for existence, such as sleeping and eating.
Leisure as Activity
Leisure can also be viewed as activities that people engage in during their free time—activities that are not work
oriented or that do not involve life maintenance tasks such as housecleaning or sleeping. Leisure as activity
encompasses the activities that we engage in for reasons as varied as relaxation, competition, or growth and may
include reading for pleasure, meditating, painting, and participating in sports. This definition gives no heed to
how a person feels while doing the activity; it simply states that certain activities qualify as leisure because they
take place during time away from work and are not engaged in for existence. However, as has been argued by
many, it is extremely difficult to come up with a list of activities that everyone agrees represents leisure—to some
an activity might be a leisure activity and to others it might not necessarily be a leisure activity. Therefore, with
this definition the line between work and leisure is not clear in that what is leisure to some may be work to others
and vice versa.
Leisure as State of Mind
Unlike the definitions of leisure as time or activity, the definition of leisure as state of mind is much more
subjective in that it considers the individual’s perception of an activity. Concepts such as perceived freedom,
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intrinsic motivation, perceived competence, and positive affect are critical to determining whether an experience
is leisure or not leisure.
Perceived freedom refers to an individual’s ability to choose the activity or experience in that the individual is
free from other obligations as well as has the freedom to act without control from others. Perceived freedom also
involves the absence of external constraints to participation.
The second requirement of leisure as state of mind, intrinsic motivation, means that the person is moved from
within to participate. The person is not influenced by external factors (e.g., people or reward) and the experience
results in personal feelings of satisfaction, enjoyment, and gratification.
Perceived competence is also critical to leisure defined as state of mind. Perceived competence refers to the skills
people believe they possess and whether their skill levels are in line with the degree of challenge inherent in an
experience. Perceived competence relates strongly to satisfaction, and for successful participation to occur, the
skill-to-challenge ratio must be appropriate.
Positive affect, the final key component of leisure as state of mind, refers to a person’s sense of choice, or the
feeling people have when they have some control over the process that is tied to the experience. Positive affect
refers to enjoyment, and this enjoyment comes from a sense of choice.
What may be a leisure experience for one person may not be for another; whether an experience is leisure
depends on many factors. Enjoyment, motivation, and choice are three of the most important of these factors.
Therefore, when different individuals engage in the same activity, their state of mind can differ drastically.
Definition of Play
Unlike leisure, play has a more singular definition. Play is imaginative, intrinsically motivated, nonserious, freely
chosen, and actively engaging. While most people see play as the domain of children, adults also play, although
often their play is more entwined with rules and regulations, which calls into question how playful their play really
is. On the other hand, children’s play is typified by spontaneity, joyfulness, and inhibition and is done not as a
means to an end but for its inherent pleasure.
Definition of Recreation
There is some consensus on the definition of recreation. Recreation is an activity that people engage in during
their free time, that people enjoy, and that people recognize as having socially redeeming values. Unlike leisure,
recreation has a connotation of being morally acceptable not just to the individual but also to society as a whole,
and thus we program for those activities within that context. While recreation activities can take many forms, they
must contribute to society in a way that society deems acceptable. This means that activities deemed socially
acceptable for recreation can change over time.
Examples of recreational activities are endless and include sports, music, games, travel, reading, arts and crafts,
and dance. The specific activity performed is less important than the reason for performing the activity, which is
the outcome. For most the overarching desired outcome is recreation or restoration. Participants hope that their
recreation pursuits can help them to balance their lives and refresh themselves from their work as well as other
mandated activities such as housecleaning, child rearing, and so on.
People also see recreation as a social instrument because of its contribution to society. That is, professionals have
long used recreation programs and services to produce socially desirable outcomes, such as the wise use of free
time, physical fitness, and positive youth development. The organized development of recreation programs to
meet a variety of physical, psychological, and social needs has led to recreation playing a role as a social instrument
for well-being and, in some cases, change. This role has been the impetus for the development of many recreation
providers from municipalities to nonprofits such as the YMCA, YWCA, Boy Scouts of America, Girl Scouts of
the USA, and the Boys and Girls Clubs of America. There are also for-profit agencies, such as fitness centers
and spas, designed to provide positive outcomes.

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Recreational and Leisure Activities

Like anyone else, persons who have serious mental illnesses need a sense of belonging and a feeling of satisfaction
with their lives. Efforts to help people feel a part of their communities and have a good quality of life usually
focus on helping them get decent housing, meaningful employment, education and health care, as well as
fostering self-determination and social support. However, recreational and leisure activities may also be central
to feeling connected to community life.

Research has consistently indicated that physically and socially active recreation and leisure activities are related
to a higher quality of life in the general population, as well as in people with various disabilities. This is especially
true of activities that help people feel a part of neighborhood life, including such simple activities as eating in a
restaurant, visiting a library or walking in a park. But research has also found strong relationships between
physical activity and physical health as well as between physical activity and mental health. Yet individuals with
serious mental illnesses are significantly less active than the general population and their leisure involvement
tends to be much more passive. Community inclusion initiatives need to focus more strongly in this ‘domain’ of
community life.

Physical Recreation

Involvement with a variety of leisure activities can help individuals with serious mental illnesses lead more active
and healthier lives. Many recreational activities require the movement of large muscle groups and can be aerobic,
which improves cardiovascular health. Hiking, biking, swimming, gardening and dancing are good examples.
Physically active pastimes such as these are most beneficial if they are done routinely, and the pleasure derived
from them makes this more likely. Recreational and leisure involvement also promotes health by providing a
buffer for stress and creating a sense of balance. For instance, recreation and leisure can give people a break from
a stressful situation. Indeed, physically active recreational activities can be powerful proactive coping strategies,
(i.e., efforts to prevent stressful events before they occur). Social support, sport/exercise and miscellaneous non-
social activities, such as painting or writing, are examples.

Social Recreation

Socially active recreation is also important to one’s health. In fact, friendships may be the hidden factor in greater
longevity. Research supports the importance of social networks in maintaining health and reducing re-
hospitalizations of persons with mental illnesses. Recreational activities have the potential to increase social
involvement and friendships in many way, for many recreational activities, such as playing cards or being on a
sports team, need the involvement of others.
Other recreational pursuits allow persons with serious mental illnesses to meet new friends who share common
interests. Talking with acquaintances about movies or books or taking an adult education class or a course at a
YMCA helps individuals with serious mental illnesses to have a social life outside of their family and give them
opportunities to forge new relationships. Finally, some recreational activities, such as movies or concerts, are
often just reasons to get together with friends and help maintain social relationships.

The Challenge

Many people with psychiatric disabilities nonetheless find it difficult to develop physically or social active
recreational and leisure pursuits for themselves:

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 service providers are hesitant to regulate or prescribe a person’s free-time activities: the freedom to do
what we want in our free time is central to the very idea of leisure. So choosing to watch television or
simply do nothing is inherent to a person’s right to self-determination. However, clients with serious
mental illnesses may need assistance with choosing recreational and leisure activities for themselves,
particularly if they have had these choices made for them in the past. While self-directed care ultimately
involves choices, each choice should be based on informed decisions. It is often assumed that it is
relatively easy to find opportunities for enjoyable and socially constructive pastimes. Yet research suggests
that this is not automatic, especially for people with mental illnesses. Just as such individuals may benefit
from a job coach, they may also benefit from ‘leisure coaching’. Leisure coaching would help them
identify and explore personal values and interests that are associated with physically and socially active
recreational and leisure activities, develop or refine skills needed to pursue personal interests, and locate
personal and community resources to support their involvement in community recreation. Most
importantly, leisure coaching would help remove barriers to participation in community and social life.
 research has also shown that leisure behavior is an important aspect of the coping response, yet few
individuals consciously recognize the role that recreation and leisure play in helping them cope with stress
or in their overall health and well-being. This is true for both individuals with serious mental illnesses and
for service providers, such as case managers and peer supporters. This may inadvertently lead to
undervaluing this aspect of a person’s life.
 finally, it may be that the health and human service system rarely sends the message that persons with
serious mental illnesses should take the time or have the opportunity to find health and happiness through
physically and socially active leisure involvement. Other important issues often take priority, and the
commitment to building a recreation/leisure agenda may be lost in the shuffle. While it seems logical that
a case manager would be the ideal person to provide leisure coaching, this may not occur beyond the
verbal encouragement to a client to “do something fun this weekend”,“join a club”, or “get out there and
meet some people and make some friends.”
Recommendations

The following are recommendations for service providers on improving recreational and leisure opportunities
for people with mental illnesses:

 Create and evaluate model demonstration programs that use leisure coaching to promote proactive
coping, community inclusion, life satisfaction and other positive outcomes for persons with serious mental
illnesses;
 Involve peer supporters who can model positive leisure coping strategies;
 Train case managers to more specifically assess leisure coping beliefs and to include recreation and leisure
as a focus;
 Develop and evaluate a manualized training program to promote self-determination and proactive coping
for persons with serious mental illnesses through recreation and leisure involvement;
 Develop and evaluate a manualized training program to increase environmental supports for recreation
and leisure involvement, including self-advocacy and education for family and friends.

4.2 SUPPORT SERVICES IN HOSPITALITY

Tourism Infrastructures and Ecologic Anthropy

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"Tourism does offer an important alternative form of economic activity; it must be seen as only one component
of a larger series of development initiatives within any economic system. That is not to say that tourism in selected
circumstances cannot be the major source of income and jobs in a community or region, but rather that the
impact and role of tourism will vary".

"The potential economic benefits of tourism development include: 1) Increased resources for the protection
and conservation of natural and cultural heritage resources; 2) Increased income and improved standard of
living from tourist expenditures; 3) Increased induced income from tourism expenditures; 4) New employment
opportunities; 5) Increased community visibility leading to other economic development opportunities; 6) New
induced employment opportunities; 7) Increased tax base; 8) Improved infrastructure and facilities; 9)
Development of local handicrafts.

Size estimating

"Attracting tourism revenues and investment in infrastructures is influenced by a complex number of

characteristics, such as: 1) Political constraints and incentives (attractiveness of the taxation policies regarding
local and foreign investment and imports); 2) The resources and conveniences offered (attractions,
transportation, access, hospitality, medical and other services, pricing etc.); 3) Market characteristics (visitor tastes
and preferences, disposable income, propensity to travel, proximity to destination etc.); 4) Political stability; 5)
The ability of the destination to market and promote itself effectively.

"For planning and management purposes, transportation infrastructure in the region can be seen as comprising
transports means: 1) International air services and international airports;2) Domestic air services; 3) Land
transport systems and routes; 4) Water transport.

"Tourism 'hardware' include: 1) Water supply, sewage, telecommunications, roads, power generation; 2) New
and/or refurbished tourism accommodation (hotels, integrated resorts, guesthouses, and camping sites); 3)
Specialized ethnic or regional restaurants as the expectations of tourists expand; 4) Transport facilities (airports,
ports, harbours, road systems and car parks); 5) Transport vehicles (motor vehicles, ferries, other maritime
vessels, aircraft, helicopters and bicycles); 6) Visitor attractions, natural attractions, cultural attractions and
recreational facilities.

Site Planning

"Groups 3 kinds of services:

1) Primary tourist facilities and services (accommodation / hotels, restaurants and travel and tour services); 2)
Secondary tourist facilities and services (shopping, recreation, entertainment and visitor information services);
3) Tertiary tourist facilities and services (health services and care, emergency and safety services, financial services
and personal services).

"Major constraints are such as: 1) Air transportation; 2) Basic infrastructure services; 3) Suitable accommodation
facilities; 4) Recreational facilities (including secondary tourism); 5) Promotion and marketing; 6) Support
services and industries".

Private Investments may be in: 1) Accommodation (from major hotels and integrated resorts to small, modest
and low-cost accommodation, and accommodation with indigenous communities); 2) Ancillary services

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(restaurants, bars, entertainment, shopping and transport); 3) Support services (travel brokering, visitor advice
and professional services); 4)Tourism enterprises (diving, snorkeling, fishing, sailing and visits to historical sites".

Planning in tourism is also about momentum and event without heavy fixed infrastructures as in: "Arts and crafts
festivals are common occurrences. These festivals, lasting for a day, a week end or a week, are a combination of
art, entertainment, and concessions, and are often held outdoors along a seashore, riverfront, in a city park, or
on a pedestrian mall. The artists at these festivals generate income by selling their works. The festivals
themselves, though often non-profit, generate revenues through concession sales. The revenues cover the cost
of opening and operating the festival. It is important that festivals of this nature operate in an efficient manner
to cover their costs".

Infrastructures

"Information for analysis of infrastructure ecological settlement, can include the following: 1) Geological Survey:
topographic maps, geologic quadrangles, hydrologic atlases, surface water discharge records, groundwater
availability maps and water quality data. 2) Soil conservation, soil survey maps. 3) Agricultural and Conservation
Service: aerial photographs. 4) Environmental Service: wildlife habitats, and endangered and threatened species,
recreation facilities and visitation. 5) Sea, climate and coastal services: climatic conditions and surveys. 6)
Statistics and demographics: regional and local demographics. 7) on or off-post conditions".

"Off-post conditions include geographic location, regional and local transportation systems, local land use,
regional and local socio-economic conditions, local laws and regulations, climate, and public and private sector
recreation facilities and programs".

"On-post conditions include elements of both the natural and manmade environment such as geology, soils,
topography, hydrology, vegetation, fish and wildlife, aesthetic qualities, archeological and historic sites,
circulation, utilities, existing recreation facilities, pollution, and dangerous or hazardous areas".

FACTORS TO CONSIDER IN MANAGING HOSPITALITY AMENITIES

Define the local and regional approach in concrete terms. Start with an inventory of the state of play and a
collective diagnosis to define the issues and a shared vision of the territory and the project. The local approach
puts the principle into action, starting with the identification of the human resources concerned.

Tap into the human resources, they are the source of knowledge, the intercultural approach, exchanges,
cooperation and partnerships, they are the strategy’s beneficiaries: inhabitants, institutional and economic
players, and consumers. They are naturally vital to the entire sustainable development process".

Put sustainable development into practice at the local and global space (level), time (pace), cultural, social,
economic and environmental considerations tie in with or overlap the considerations of the responsible tourism
players industry wide".

Consider all types of tourism objectively conventional, mass tourism and quality tourism could evolve, converge
and improve their local and global sustainable development results.

Polish the model value This is vital to ownership in the territories and the pilot operations and beyond. Its tools
are qualitative and quantitative evaluation, credibility and compelling examples and knowledge sharing through
information and training.
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Be pragmatic Defining the strategy means first and foremost to grasp the opportunities, be responsive and
prioritize effectiveness.

Infrastructure and Superstructure Development:

Infrastructure and superstructure are the backbone of tourism industry. In fact, tourism helps in the development
of infrastructure and superstructure for tourist destinations, when private tour operators, travel agencies or
destination companies convert touristic appeal of a destination into a saleable commodity, that destination will
become ‘Nuclear’ destination for the development of infrastructure and superstructure.

Since long, adequate infrastructure and superstructure to accommodate international as well as national tourism
has become a debatable issue among the tourism policy planners and private sector tourism enterprises.

Presently, Government agencies, the Apex business and private sector tourism enterprises are concentrating on
the new concept in infrastructure development to achieve the predetermined estimates of international as well as
domestic tourist traffic in the country.

Social and Cultural Concepts:

Today, tourism is recognised as a social phenomenon which causes several benefits to the society and culture,
which are taken from the creative marketing of destinations to the tourist markets.

It has a profound effect upon the life of the individual as well as on society as a whole. It has main objectives of
bringing mankind closer to different social values, cultural heritage and customs.

It is true that cultural relations help create an atmosphere of peace; born of reciprocal understanding of the
spiritual uniqueness of each nation in the sense that cultural co-operation can result in the possibility of arriving
at far reaching agreements in the economic and political spheres.

Tourism and Environment:

Tourism is called smokeless industry, which can be synonymous with the protection and conservation of the
environment. The improvement and conservation of natural and man made tourist resources, contribute to
tourist product and has no danger to the nation’s resources.

The scenic beauty, local culture, life styles, valleys, mountains are of great interest to visitors or tourists. The
growth of tourism both domestic and international does less harm to the environment as compared to other
industrial development.

However, tourism specifically international tourism has negative impact on the environment, but this impact is
negligible. Tourism can become an instrument for beautification and improvement of the environment, if it is
planned in a systematic manner.

Tourism Infrastructure:

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Infrastructure is an essential component for the promotion of tourism in a systematic and scientific way. Tourist
traffic and tourist receipt both in rupees and foreign currency are extremely based on adequate touristic
infrastructure in a country.

Further, the image and resources of a country are built on the perception of infrastructure provision in the
particular destination.

Thus, no country can think about the image and to increase touristic inflow without the adequate provision of
infrastructure facilities. Therefore, two interesting contradictions emerge when we take up the issue of
infrastructure.

Tourism expands the space of tourist and in doing so, it brings into his orbit destinations which should be socially,
culturally and economically different from his home environment. However, in many cases tourists are unable
to cope with these differences.

Tourists make use of local resources, international airlines, hotels, tour operators, value system and other
commodities which are meant for host community. This dilutes the economic and social benefits of a country.

However, if tourism is developed and planned by taking into consideration these vital factors, tourism
infrastructure and services will not produce results which hamper the residents from meeting tourist’s basic needs
and yet achieve the objectives of income, job opportunities and development of the areas. These two have an
important impact on infrastructure development in the tourism business.

Tourism infrastructure is a comprehensive term which includes general infrastructure and superstructure.
General infrastructure includes all forms of construction on and below ground, required by any inhabited area
in extensive communication with the outside world and as a basis for extensive human activity within, such as
highways, railway lines, power houses, communication network, water supply system, sewerage, hospitals, police
lines, industries for productive goods and services essential for living and so on. It is the pre-requisite for
accelerating the socio-economic growth of a country.

It is the secondary input for the tourism industry. On the other hand, touristic superstructure is the primary input
and is essential for tourism development. It encompasses a wide range of facilities and services, such as, lodging,
food and catering, historical sites, entertainment houses, shopping centers, transportation facilities, tourism
organisations, human resources, sports, financial facilities, airports etc. In India superstructure facilities are
provided by the private sector, tourism enterprises, central government, state government and local bodies.

The tourism product within a country is not a separate enclave. It is the amalgamation of various sectors of a
nation such as, agriculture, religion, trade, health, mountain, land, education, forestry, manufacturing and
settlement pattern. Thus, the relationship is not just only between buyers and sellers of travel, as tourism supply
is a part of community lives.

This is because the tourist product and resident product are intermingled and overlapped, for example hotel,
museum, wildlife sanctuaries, monuments, sports, religious places, entertainment and cultural centers and
transportation etc.

Thus, the more a local community takes pride in the involvement of its community, the greater will be the
strength of its tourism product. Infrastructure can be defined as the provisions, facilities and the policies,
relationships, institutions that remove the barriers to free movement of people.
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The development of new touristic infrastructure and improvement in the existing infrastructure are vitally
significant in the developing countries like India. These developments may confer benefits upon the resident
population by providing them with amenities and facilities which they will be enjoying.

Furthermore, the provisions for infrastructure may provide the basis for or serve as an encouragement for greater
social and economic diversification. Government promotes and encourages various industrial enterprises to serve
the needs of tourism and stimulate the economic activities.

The tourism industry requires or uses the existing infrastructure to achieve its objectives. The industry has today
the multifarious benefits of being able to generate profits and create employment opportunities from the existing
infrastructure and thus makes remarkable contribution to the growth of national economy.

5.0 ASSEMBLIES AND EVENTS IN HOSPITALITY MANAGEMENT

Types of Meetings and Events

What’s the difference between a seminar and a workshop, a trade show and an exhibition ? With all the different
meeting terms it can get quite confusing! If you happen to plan meetings it pays to get your terminology right,
that’s why it is important to define types of events and meetings or assemblies that can be organized in the
hospitality industry.

Annual General Meetings:

An Annual General Meeting (AGM), or a shareholders meeting, is a large gathering held by publicly traded
companies. These meetings are held in order to let shareholders ask the board of directors questions about a
company’s health, as well as to elect new members to the board.
Board Meetings:
While the term “Board Meeting” technically means a gathering of a company or organization’s board of directors,
it can also be defined as a gathering of decision makers. At this gathering, important facts are presented and
decisions are made as to the best course of action to take in a certain period of time.
Breakout Session:
At a convention or conference, breakout sessions are meetings (workshops, seminars, or presentations) intended
for small groups. These meetings can be held in smaller meeting rooms within a convention center or hotel as
well as off-site meeting and boardrooms.
Business Dinners and Banquets:
These are generally formal celebrations organized by a company or organization to celebrate achievements within
the organization and to boost employee and member morale. Depending on the size of the organization, these
dinners may be a small gathering at a local restaurant or conducted in a large hotel banquet hall or unique event
space like an art gallery or museum.
Conference:
Although “conventions” and “conferences” are terms that are used interchangeably, the meeting industry
standard definition of a conference is of a meeting of a shorter duration than a convention and designed to meet
a specific objective. See: Convention.

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Colloquium:
A colloquium can be best described as an “academic networking event.” Participants are often experts in a given
field and they meet to informally present and exchange new ideas. Some academic programs require participation
in a colloquium in order to complete the program.

Conclave:
Conclaves are meetings conducted in secret. In general, conclaves are used to describe “closed door” meetings
between individuals who have a certain level of power or influence. One of the most famous conclaves is the
Papal conclave, where cardinals meet to elect a new pope.
Congress:
While most Americans generally associate the word “Congress” with the legislative branch of government, a
congress can also be a large group of individuals who meet on a regularly scheduled basis, often to make decisions
through a debate and voting process.

Consumer Shows:
A consumer or gate show is a trade show that’s open to the general public. These shows generally have an
entrance fee. People interested in learning about the latest products (electronics, automobiles, etc) often go to
consumer shows.

Conventions:
A convention is an a large gathering of people with a shared interest (usually professional or fandom related).
These events are often recurring, and are usually scheduled at a specific time each year. Conventions usually
have keynote speakers, as well as presentations that familiarize attendees with advancements or trends within a
particular field of interest. See: Conference.

Exhibitions:
An exhibition is a trade show that focuses on B2B businesses.
Expo or Expositions:
An expo is a large scale exhibition or trade show often conducted on an international level. One of the most
common examples of an expo is The World’s Fair.
Fairs:
A fair is a trade show or expo organized for the purpose of exhibiting arts and crafts, industrial products and
agricultural products, but more local and on a smaller scale. Unlike most trade shows, entertainment and fair
food (think fried twinkies and french fry studded corn dogs!) are often a major draw.
Functions:
A social gathering or party, sometimes of a ceremonial nature. A function is usually one or one of several
gatherings that contribute to a larger event. See also: Galas, Business Dinners,
Fundraisers:
A fundraiser can be a party, dance, dinner organized for the express purpose of raising money for a cause or
organization.
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Galas:
A gala is a large scale dinner gathering or party that often includes entertainment and/or awards ceremonies
following dinner. See also: Function , Business Dinner

"Green" Meetings:
"Green" meetings are events produced with sustainability in mind. When planning an event considerations are
made concerning the use of water, electricity, fuel as well as the consumption of renewable products as opposed
to disposable products.

International Events:
According to the meeting industry standard definition, an international event is any event where 15% or more of
the participants come from out of the the event’s host country.
Meetups:
A meetup is an informal meeting or get-together organized for people with similar interests. These interests can
be anything: dating, networking, board games, romance novels, meditation, hiking, wine tasting–just to name a
few.

Networking Events:
Organizing or sponsoring a networking event can be a great way to raise a company or individual’s profile within
a certain community. Networking events can run from informal schmooze and booze affairs at a local bar to fully
fledged galas complete with an open bar.
Party:
A generic term for any social gathering.
Plenary or General Sessions:
A large meeting open to all people attending an event. These sessions often kick off a large conference or
convention before it begins.
Political Events:
Political events are organized to raise awareness or funds for a particular candidate or cause. Democratic and
Republican national conventions, the largest political events in the U.S. are organized to energize the base and
bring in delegates from each of the 50 states.

Press Conferences:
Press conferences are often organized by newsmakers (most often in politics but also in business and in sports)
to make an announcement or to field questions by press who happen to be invited to the conference.
Product Launch Events:
Product Launches are often large scale events whose organizers invite journalists, bloggers and social media
influencers to witness the very first unveiling of a company’s product. A successful product launch will often
include a venue that is unique to the product being used.

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Receptions:
In the meetings industry, receptions refer to a social function where light refreshments are served, usually buffet
style. Receptions are often informal, and attendees will usually stand up and socialize rather than sit down at a
table. For weddings and other social events, receptions are informal celebrations or gatherings that follow a more
formal ceremony.
Retreats and Team Building Events:
Retreats can be anything from go-cart races to ski trips to ropes courses. Essentially the purpose of the retreat is
to get team members to know each other better and thus be more efficient as a team.

Seminars:
In business, seminars are meetings organized to inform a group of people about a specific topic, or to teach a
specific skill. Expert speakers and teachers are usually invited to speak on topics like personal finance, investing,
real estate, web marketing, and many others. See Workshop.

Shareholder’s Meetings:
See Annual General Meeting.
Social Events:
A large gathering organized to celebrate major life events and religious ceremonies. Common social events
include: anniversaries, weddings, birthdays, and bar/bat mitzvahs.
Symposiums:
Symposiums are meetings organized so that experts in a given field can meet, present papers, and discuss issues
and trends or make recommendations for a certain course of action.
Trade Shows:
Trade Shows are an opportunity for companies to exhibit some of their latest products, as well as yet to be
released prototypes to journalists as well as others in the industry. See also: Exhibition, Consumer and Gate
Shows, Expo.
Workshops:
The terms “workshop” and “seminar” are used interchangeably. While both are education focused events,
workshops generally have more hands-on and group activities. Workshops are better for teaching skills that
require interactivity and individual participation to learn. See: Seminar.
5.1 MANAGEMENT IMPLICATIONS

Event management is the application of project management to the creation and development of festivals, events
and conferences.

Event management involves studying the intricacies of the brand, identifying the target audience, devising the
event concept, planning the logistics and coordinating the technical aspects before actually launching the event.
Post-event analysis and ensuring a return on investment have become significant drivers for the event industry.[1]

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The recent growth of festivals and events as an industry around the world means that the management can no
longer be ad hoc. Events and festivals, such as the Asian Games, have a large impact on their communities and,
in some cases, the whole country.

The industry now includes events of all sizes from the Olympics down to a breakfast meeting for ten business
people. Many industries, charitable organizations, and interest groups will hold events of some size in order to
market themselves, build business relationships, raise money or celebrate.

Marketing tool

Event management is considered one of the strategic marketing and communication tools by companies of all
sizes. From product launches to press conferences, companies create promotional events to help them
communicate with clients and potential clients. They might target their audience by using the news media, hoping
to generate media coverage which will reach thousands or millions of people. They can also invite their audience
to their events and reach them at the actual event.

Services

Event managers can supervise diverse corporate events, such as product launches, press conferences, corporate
anniversary parties, meetings, conferences, and marketing programs such as road shows and grand opening
events. In addition, they can coordinate special corporate hospitality events such as concerts, award ceremonies,
film premieres, parties to launch new products or services, fashion shows, commercial events, and even private
(personal) events such as weddings and religious services.

Event management firms can handle a variety of specific event-related services, which can range from a few select
services for clients with limited budgets, to handling all creative, technical and logistical aspects of an event.

Event manager

The event manager is the person who plans and executes the event. Event managers and their teams are often
behind-the-scenes running the event. Event managers may also be involved in more than just the planning and
execution of the event, but also brand building, marketing and communication strategy. The event manager is an
expert at the creative, technical and logistical elements that help an event succeed. This includes event design,
audio-visual production, scriptwriting, logistics, budgeting, negotiation and, of course, client service. It is a multi-
dimensional profession.

An event architect is an event manager that becomes involved at the early initiation stages of the event. Specially
for larger public events, at the initiation stage, the event architect needs to make crucial choices and decisions
related to the creative concept and design of the event. In depth technical design knowledge and full
understanding of how to communicate a company´s message across a public are needed in order to make the
event effective.

If the event manager has budget responsibilities at this early stage they may be termed an event or production
executive. The early event development stages include:

 Site surveying
 Client service
 Brief clarification
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 Budget drafting
 Cash flow management
 Supply chain identification
 Procurement
 Scheduling
 Site design
 Technical design
 Health & safety
 First aid services
 Environmental and ecological management
 Risk management

An event manager who becomes involved closer to the event will often have a more limited brief. The key
disciplines closer to the event are:

 Health & safety including crowd management

 Logistics and vehicle selection
 Rigging
 Sound
 Light
 Video
 Detailed scheduling and agenda planning
 Security

Sustainability

Sustainable event management (also known as event greening) is the process used to produce an event with
particular concern for environmental, economic and social issues. Sustainability in event management
incorporates socially and environmentally responsible decision making into the planning, organisation and
implementation of, and participation in, an event. It involves including sustainable development principles and
practices in all levels of event organisation, and aims to ensure that an event is hosted responsibly. It represents
the total package of interventions at an event, and needs to be done in an integrated manner. Event greening
should start at the inception of the project, and should involve all the key role players, such as clients, organisers,
venues, sub-contractors and suppliers.

Technology

Event management software companies provide event planners with software tools to handle many common
activities such as delegate registration, hotel booking, travel booking or allocation of exhibition floor space.

Education

There are an increasing number of universities which offer courses in event management, including diplomas
and graduate degrees. In addition to these academic courses, there are many associations and societies that
provide courses on the various aspects of the industry. Study includes organizational skills, technical knowledge,
P.R., marketing, advertising, catering, logistics, decor, glamor identity, human relations, study of law and licenses,
risk management, budgeting, study of allied industries like television, other media and several other areas.
Certification can be acquired from various sources to obtain designations such as Certified Trade Show Marketer
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(CTSM), Certified Manager of Exhibits (CME), Certified in Exhibition Management (CEM), Global
Certification in Meeting Management (CMM), Certified Meeting Professional (CMP) and the Certified Special
Event Professional (CSEP).

 Career opportunities are in the following industries :

1. Event management
2. Event management consultancy
3. Hotel, travel and hospitality industries
4. Advertising agencies
5. Public relations firms
6. Corporations
7. News media
8. Non-profit organization
9. Integrated marketing & communications
10. Event budgeting and accounting

Categories of events

Events can be classified into four broad categories based on their purpose and objective:

1. Leisure events e.g. leisure sport, music, recreation.

2. Cultural events e.g. ceremonial, religious, art, heritage, and folklore.
3. Personal events e.g. weddings, birthdays, anniversaries.
4. Organizational events e.g. commercial, political, charitable, sales, product launch, expo.

6.0 MANAGERIAL ROLES IN HOSPITALITY

6.1 MANAGEMENT CONTRACTS

There are a number of structures available for the ownership and operation of a hotel. Comparatively few
modern hotels are operated by their owners. Hotels are frequently operated as franchised businesses, with the
franchisee taking on the style and brand reputation of a leading chain under license.

The structure chosen will often depend on the scale of investment by the investor/hotelier, and whether land
ownership is an important consideration. If the hotelier would rather minimise the obligations and responsibilities
that are associated with land ownership, then a management agreement is a good choice.

Hotel management agreements are usually long-term arrangements. Under such agreements, the hotel operator
has almost exclusive control. The hotel owner's role is that of a sleeping partner until problems are encountered.

This guide is a summary of the most commonly encountered features of this type of agreement.

What is a hotel management agreement?

A hotel management agreement records the relationship between the owner and the operator of a hotel.

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The nature of the relationship is that the operator is made responsible for the day-to-day running of the hotel,
including hiring and firing employees. As well as providing accommodation, and additional functions such as
conference facilities, the operator will take reservations and conduct the marketing and promotion of the
business. The operator will be responsible for routine maintenance and will procure other capital projects needed
for the hotel, although these will typically be authorised and paid for by the owner.

The negotiation of the hotel management agreement, focussing on the respective rights and obligations of the
owner and the operator, is critical to the financial success of the hotel business and the return on the owner's
investment. The first draft of the agreement will usually be offered by a prospective operator. The operator will
usually seek a long-term right to operate the hotel under the operator's brand to standards commonly used across
that operator's group of hotels. It will usually be heavily weighted in favour of the operator, such that the owner
has little or no input in the business operation but is expected to finance the whole operation.

The owner will want to negotiate the terms of the agreement and introduce some balance, giving the owner rights
and remedies if the hotel business experiences financial concerns. The scope to add balance to a hotel
management agreement may depend on the allure of the hotel to the operator – if it is a prestigious hotel, in a
good location, the operator will be more likely to negotiate.

Hotel management agreements can be long and sometimes complex, but many of the same issues frequently
arise.

Avoiding tenancy rights

The owner should be careful not to accidentally create a tenancy under which the operator will enjoy the rights
of a business tenant. This risk arises because the management agreement, if incorrectly drafted, can have the two
basic features which are required for the grant of a lease: exclusive possession of the premises for a defined
period of time.

If the owner's interest is leasehold, care needs to be taken that the inadvertent creation of a tenancy does not
breach the terms of the owner's own lease.

The operator's fees

The operator's remuneration for the provision of services under the hotel management agreement is usually
provided for as a fee which, in effect, is an operating expense of the hotel business. This fee must encourage the
operator to perform well, but the owner's return will be reduced by the deduction of the operator's fee before
any profits are distributed.

Fees can be calculated by reference to various formulae. Typically, the operator's fee will be subdivided as follows:

 a guaranteed base amount, calculated as a percentage of revenue from the hotel business;
 an incentive element, to be earned by the operator if gross operating profit (GOP) exceeds an agreed
threshold.

GOP is calculated by deducting operating costs from gross revenue, but there can be debate over what is
considered an operating cost for the purpose of ascertaining the operator's fee and what is a financial risk which
should be borne by the owner. Other measures of performance can be brought into play, such as RevPAR
(revenue per available roo) and ROR (room occupancy rate).
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The management agreement should enable the owner to restrict the operator's ability to incur certain types of
expenditure that may result in increased revenues, and therefore a higher base fee, but which may not correspond
to increased profits - for example, sales promotions. Best practice leans towards the agreement of an operating
budget with projected profits which the owner is able to review from time to time.

It should be noted that the relationship between owner and operator is increasingly governed not only by the
traditional management agreement but also by parallel arrangements such as licence, royalty or service
agreements. To fully assess the value of payments due to the operator, it is necessary to assess the fee requirement
of these parallel contracts.

Duration and renewal

Operators typically prefer long initial terms and several long renewal periods exercisable by the operator. The
owner may prefer a shorter duration without specific renewal rights – if the hotel is a success, renewal will be in
both parties' interests.

Differences have emerged in practice between the terms of management agreements entered into as part of a
'sale and manageback' transaction and those management agreements which are entered into by operators on a
standalone basis, for example in relation to a new development. The former tend to be longer term than the
latter.

However, there has been a noticeable decrease in the average term of many management contracts recently, for
the following reasons in particular:

 increase in hotel investment in emerging markets, such as central and eastern Europe. The risks
associated with this have led both owners and operators to negotiate contracts with shorter terms allowing
them an opportunity to exit the agreement in the event of disappointing market conditions;
 an increase in private equity vehicles in the hotel investment industry, which has placed pressure on
operators to offer more competitive initial terms but more renewal options;
 increasing competition among operators seeking to broaden their distribution networks.

Working capital (Print From Here)

The owner's obligations to provide working capital or otherwise finance the operation of the hotel should be
clearly addressed in the agreement. The furniture, fittings and equipment (FF&E) in a hotel are often exposed
to heavy use and must be replaced at regular intervals to maintain its quality, image and income potential. A fund
will often be set up to accumulate capital to replace FF&E, typically a percentage of gross revenue.

Capital improvements will usually be divided into:

 routine capital improvements, required to maintain revenues and profits at their present levels – these
will be funded through the FF&E provisions;
 discretionary capital improvements, to generate more revenue and profit (for example, the conversion of
offices into meeting rooms) - these will generally require additional funding and owner approval.

If management elects to postpone a required repair, this will not eliminate or save the expenditure but merely
defer the payment until a later date. If a hotel has operated with a lower than normal maintenance budget, it is
likely to have accumulated a considerable amount of deferred maintenance. An insufficient FF&E reserve will
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eventually negatively impact the standard or grading of a property, and may also lead to a decline in the hotel's
performance and its value.

Division of responsibility

The management agreement should clearly distinguish between the responsibilities to be assumed by each of the
owner and operator, and should specify what each party needs to provide to enable the other to perform its part
of the agreement. Tension can arise as to where the residual risk lies – if action is required which is not assigned
under the agreement, who should perform this task and at whose cost and expense?

Owners can fall into the trap of making assumptions as to the scope of the operator's responsibility. The operator
will be eager to minimise its responsibilities and to charge extra for ancillary services which the owner may have
wrongly assumed to be part of the overall package offered by the operator. The management agreement may
allow the operator to charge the owner additional fees for these 'chain services', but this should be limited to only
those services that can be provided more efficiently for the entire group of hotels maintained by the management
company rather than on a hotel-by-hotel basis. The owner should satisfy itself that all hotels benefitting from
these services are paying for them equitably.

Participation in loyalty reward schemes, central reservation systems and other brand-drive offerings provided by
the operator should be considered by the owner – these can make or break the financial viability of the hotel.

One mechanism for sharing risk is for the operator to guarantee minimum levels of profit or a certain percentage
return on the owner's investment, requiring the operator to fund any shortfall. There has, however, been a trend
away from this type of guarantee.

Employees

The owner would prefer the hotel's employees to be employed by the operator, but this is rarely achievable.
Operators take the contrary position, other than in relation to the General Manager. If the hotel's employees are
employed by the owner, the owner should extract appropriate indemnities from the operator to guard against
any liability to employees arising through mismanagement of the employer-employee relationship.

Non-compete

The owner should limit the operator's ability to be involved in other hotels which will compete for the same
business as the owner's hotel. If this limitation is included, the operator will seek to limit this to hotels within a
defined area.

Financial reporting

The owner will not want to micro-manage the hotel operation but should have the ability to oversee and, in
appropriate circumstances, manage the incurrence of costs and expenses so as to preserve the return on its
investment. The operator should prepare, deliver and keep to operating, capital expenditure and FF&E budgets
approved by the owner. Flexibility to adjust these budgets to meet changing circumstances should be considered.

Operators who run the hotel under their own brand will likely demand the right to incur expenditure so as to
preserve the brand reputation associated with its goodwill and common operating standards. Care must be taken
to ensure that this does not turn into a 'blank cheque' – if the operator's group decides to introduce a swimming
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pool in all of its branded hotels, the owner should not be forced to agree to the building of a new pool complex
at its hotel.

The operator should provide complete, detailed and accurate financial data to the owner, who may reserve the
right to audit the books from time to time. Maintenance of books of account should be in accordance with
accepted accounting standards.

Termination

If the hotel is a new-build, the owner should have the right to terminate the management agreement if the hotel
is not completed for any reason without payment of compensation to the operator.

The owner should have the right to terminate if the operator defaults under the agreement, without incurring any
liability. It may reserve the right to terminate without cause, but should expect the operator to require payment
of a termination fee equivalent to its anticipated return over the unexpired duration of the contract.

The owner may also extract a right to terminate if the operator fails to meet defined performance measures
detailed in the management agreement, or if the operator experiences change such as being acquired by a
competitor.

Business continuity on termination is important, and the management agreement should provide for a smooth
transition on termination or expiry.

Liability

Even though the operator is managing the hotel on a day-to-day basis, the owner's residual liability should be
addressed. If the operator acts as agent for the owner, the owner should obtain indemnities to provide for the
situation where the operator exceeds its authority or otherwise incurs liability for the owner without justification.

Intellectual property

Who owns the intellectual property rights in the hotel's processes, computer systems and branded materials
should be addressed in the management agreement. If the operator retains these rights, there should be adequate
protection for the owner in terms of business continuity in the event of termination or expiry of the agreement.

Conclusion

A fair contract for both the owner and the operator is one that balances the needs of both parties and gets the
job done for the best available return. The interests of the owner and operator are not always aligned, and a
balanced contract is usually dependent on robust negotiation.

6.2 ADVANTAGES AND DISADVANTAGES OF THE MANAGEMENT CONTRACTS

Responsibility

If you own more than one business, you may benefit from hiring a contract management company to handle the
day-to-day details of your company, leaving you time to focus on the big picture. Responsibilities you can turn
over to the management team include recruiting, hiring and training your staff. Terminations also can be turned
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over to the outsiders. Instead of relying on an in-house manager, you'll be bringing on the expertise of an entire
management team that usually brings to the table experience in a number of management areas, such as employee
tax codes, marketing and accounting.

Privacy

You do give up some of your privacy and may enter into confidentiality disputes when you hand over
management of your company to a third party. Agreements made with vendors necessarily become open to the
managers for a number of uses, ranging from ordering to price negotiations and inventory control. Employee
records, including pay, insurance and personal information, become part of the management team's
responsibility. Your own financial information also becomes accessible to the outsiders, leaving you potentially
vulnerable to fraud, ethical breaches and public exposure.

Continuity

While managers may come and go, leaving you without a consistent team in place to run your operations, a
management contract firm can change the players without affecting the continuity of your business model. The
contract company may experience employee turnover, but it won't affect your business as much because of the
contract you have in place that specifies how your business is to be managed. The contractor must maintain a
level of accuracy and efficiency as spelled out in your contract that usually is backed up by an experienced home
office.

Conflicts

It can be difficult to foresee the number of conflicts that could occur with an outside contractor. For example,
you may hire a management company to run your business and it in turn takes on the management of one of
your suppliers. Price changes, discounts and forecasts could be compromised. Many contract management
companies use a home office to handle back office duties, such as payroll and accounting. Conflicts could ensue
if the company manages competitors or clients of your business. Make sure your contract provides a legal way
out if you find such conflicts develop.

6.3 TYPES OF MANAGEMENT COMPANY

FIXED-PRICE CONTRACTS

1. Firm-Fixed-Price contracts are used when a fair and reasonable price can be established at the outset. This
contract type is preferred to all others because it encourages the contractor to contain costs.

2. Fixed-Price Incentive contracts are used when the parties can negotiate a target cost, target profit and a ceiling
price that provides for the contractor to assume an appropriate share of the risk.
3. Fixed-Price with Economic Price Adjustment contracts are used to protect the contractor and the Government
against significant economic fluctuations in labor or material costs during the period of contract performance.

4. Fixed-Price Redetermination contracts are either prospective or retroactive. The prospective type is used when
it is possible to negotiate a fair and reasonable price for an initial period but not for subsequent periods. The
initial portion of the contract is firm fixed price and will be the longest period possible. The price for subsequent
periods is determined through negotiation after completion of the contract and will be for at least 12 months.
The retroactive type is used when it is not possible to negotiate a fair and reasonable price for the entire contract
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period. A ceiling price is established and final price is determined through negotiation after completion of the
contract.

5. Fixed-Price/Level-of-Effort contracts are used to purchase a specified level of effort over a stated period of
time. This type of contract is not considered a predominant contract type.

6. COST CONTRACTS

1. Cost-Plus-Fixed-Fee contracts are used when there are enough uncertainties involved in contract performance
to preclude using a fixed price contract.

2. Cost-Plus-Incentive-Fee and Re-determinable Contracts are used to encourage contractors by providing greater
profits through cost savings and/or other performance improvements.

6.3. Cost-Plus-Award-Fee contracts are used to provide additional incentive to contractors to achieve excellence
in areas such as quality, timeliness, technical ingenuity, and cost effective management.

6.4. Cost Sharing contracts are used when the Government pays only a portion of the allowable costs and no fee.
This kind of contract is used for R&D work from which the contractor will derive a substantial commercial
benefit

7. OTHER TYPES OF CONTRACTS

1. Letter contracts are used when the Government’s interests demand that the contractor be given a binding
commitment so that work can start immediately, and negotiating a definitive contract is not possible in sufficient
time to meet the requirement.

7.2. Time-and-Material (T&M) contracts and Labor Hour (LH) contracts are used when it is not possible to
estimate accurately the extent or duration of the work or to anticipate costs with any reasonable degree of
confidence. The T&M and LH contracts provide no incentive to the contractor for cost control; therefore,
perform surveillance on the contractor to assure that the contractor is performing efficiently and using effective
cost control measures.

7.4. Contract Modifications may be either bilateral or unilateral. A bilateral modification is signed by both the
contractor and the contracting officer and used to make negotiated equitable adjustments resulting from the
issuance of a change order, to definitize letter contracts, and to reflect other agreements of the parties modifying
the terms of a contract. A unilateral modification is a modification signed only by the contracting officer and used
to make administrative changes , issue change orders, issue termination notices, and make changes authorized
by clauses such as the Options clause and the Suspension of Work clause.

7.5. Commercial Contracts are used as a result of the Federal Acquisition Streamlining Act of 1994 and DCMA
can perform Contract Administration Services (CAS) on commercial contracts. Commercial contracts rely on
the contractors’ existing quality assurance system as a substitute for Government in-process inspection and testing.
DCMA may perform in process inspection only if it is a customary market practice and only if the PCO has
included an addendum to the contract specifically tasking these inspections.

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8. NON-PROCUREMENT INSTRUMENTS:

Non-Procurement instruments fall into three basic types: grants, cooperative agreements, and other transactions.

8.1. Grants and Cooperative Agreements are used when the principal purpose of the relationship is to transfer a
thing of value to the recipient in order to carry out a public purpose of support or stimulation, as authorized by
law. Treatment of rebates related to allowable charges against Government awards. Attached is information
concerning procurement of audit services for recipients of grants and cooperative agreements.

8.3. Technology Investment Agreements (TIAs): TIAs are a class of assistance instruments that may be used to
carry out basic, applied, and advance research projects when it is appropriate to use assistance instruments, and
the research is to be performed by a for-profit firm, or by consortia that include a for-profit firm.

6.4 SELECTION OF A MANAGEMENT COMPANY

Factors in selecting contract types.

There are many factors that the contracting officer should consider in selecting and negotiating the contract type.
They include the following:
(a) Price competition. Normally, effective price competition results in realistic pricing, and a fixed-price contract
is ordinarily in the Government's interest.
(b) Price analysis. Price analysis with or without competition, may provide a basis for selecting the contract type.
The degree to which price analysis can provide a realistic pricing standard should be carefully considered. (See
15.404-1(b).)
(c) Cost analysis. In the absence of effective price competition and if price analysis is not sufficient, the cost
estimates of the offeror and the Government provide the bases for negotiating contract pricing arrangements. It
is essential that the uncertainties involved in performance and their possible impact upon costs be identified and
evaluated, so that a contract type that places a reasonable degree of cost responsibility upon the contractor can
be negotiated.
(d) Type and complexity of the requirement. Complex requirements, particularly those unique to the
Government, usually result in greater risk assumption by the Government. This is especially true for complex
research and development contracts, when performance uncertainties or the likelihood of changes makes it
difficult to estimate performance costs in advance. As a requirement recurs or as quantity production begins, the
cost risk should shift to the contractor, and a fixed-price contract should be considered.
(e) Combining contract types. If the entire contract cannot be firm-fixed-price, the contracting officer shall
consider whether or not a portion of the contract can be established on a firm-fixed-price basis.
(f) Urgency of the requirement. If urgency is a primary factor, the Government may choose to assume a greater
proportion of risk or it may offer incentives tailored to performance outcomes to ensure timely contract
performance.
(g) Period of performance or length of production run. In times of economic uncertainty, contracts extending
over a relatively long period may require economic price adjustment or price redetermination clauses.
(h) Contractor's technical capability and financial responsibility.
(i) Adequacy of the contractor's accounting system. Before agreeing on a contract type other than firm-fixed-
price, the contracting officer shall ensure that the contractor's accounting system will permit timely development
of all necessary cost data in the form required by the proposed contract type. This factor may be critical—
(1) When the contract type requires price revision while performance is in progress; or

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(2) When a cost-reimbursement contract is being considered and all current or past experience with the
contractor has been on a fixed-price basis. See 42.302(a) (12).
(j) Concurrent contracts. If performance under the proposed contract involves concurrent operations under
other contracts, the impact of those contracts, including their pricing arrangements, should be considered.
(k) Extent and nature of proposed subcontracting. If the contractor proposes extensive subcontracting, a contract
type reflecting the actual risks to the prime contractor should be selected.
(l) Acquisition history. Contractor risk usually decreases as the requirement is repetitively acquired. Also, product
descriptions or descriptions of services to be performed can be defined more clearly.

Assignment: Find out what are FRANCHISE, CONSORTIUMS AND TIME SHARE AGREEMENTS

7.0 EMERGING AND FUTURE TRENDS IN THE HOSPITALITY INDUSTRY

The hospitality industry is part of a huge group of companies known as travel and tourism industry, which
provides the necessary or desirable goods and services to travelers. The hospitality and tourism industries are the
largest and fastest-growing industries in the world(Walker, 2010).The travel and tourism industry is composed
of five parts: a) the tourism lodgings (hotels, motels, camps, cruise ships), b) the transportation services (ships,
airplanes, trains),c) food and beverage operations (restaurants, bars, taverns, catering), d) retail stores (gifts,
souvenir, arts/crafts shops) and e) the activities(recreation, educational trips, business, festivals, sport events),
(Kasavana and Brooks,2007).The hospitality industry includes the tourism lodgings, the catering companies, as
well as the food and beverage departments operating within the lodgings. Tourism lodgings stand out among
other travel and tourism companies because they offer their guests overnight accommodation, food and drinks,
recreational activities and more. The characteristics of the hospitality industry are:

 It is a truly unique and fun workplace and diverse in the scope of responsibilities that one can attain.
 It is an industry with many career options and a source for a respectful income.
 Its outstanding dimension is the orientation towards guest satisfaction at ultimate level.
 It offers intangible and perishable products (if for example 25 rooms are not sold on a specific night, their
revenues will be lost forever).
The hospitality businesses make continuous efforts for maintaining a positive image along with great guest service.
It appears that quality service is the basis to industry success. Thus, those organizations that focus on
quality become the leaders for on-going guest satisfaction, creating loyalty and influencing future behavioral
intentions (Jonsson andDevonish, 2009).The new philosophy in hospitality is that managers are counseling their
associates, giving those resources and help them to think for themselves. For success in service the hospitality
operations, among others, should focus on the guest, emphasize high-touch instead of just high-tech and
encourage changes, as well as innovations (Walker, 2010).
7.1 CURRENT TRENDS IN HOSPITALITY AND TOURISM
Globalization
Nowadays, people more than ever travel freely around the world. The international tourist arrivals from 674
million in2000, reached the 797 in 2005 (increased by18.25%) and the 940 million in 2010 (increase39.46% in
relation to 2000 and increase 17.94 inrelation to 2005). Respectively, the internationaltourism receipts (global

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tourism expenditure) from475 billion US dollars in 2000, reached the 679 billion in 2005 (increased by 42.94%)
and the 918 billion in 2010 (increased by 93.26% in relation to2000).

Safety and security

The industry’s concern with security has increased greatly due to several terrorist attacks worldwide, as well as
because of tourists’ kidnappings, robberies and assaults. Security of all types of hospitality and tourism operations
is critical and disaster plans should be made for each kind of threat. Personal safety of guests must be the first
priority (Walker, 2010).Increased security measures exist in all the international airports and most airline
companies have upgraded their security measures by investing millions of dollars. Moreover, they make plans in
order to exceed the requirements of the airline industry through technology advancements (Hall etal, 2003).
A property’s security program should include certain actions and procedures to prevent or discourage incidents
(Ellis and Stipanuk, 1999).
Diversity
The tourism and hospitality industry is among the most diverse of all industries in terms of employee population
and groups of guests. Hospitality and tourism present a unique opportunity to understand new cultural
experiences for both employees and the tourists. It is important for the personnel to understand and appreciate
different cultures in order to enhance the nature of their interactions with tourists of different cultures, religions,
races, colors, ages, genders and sexual orientations. It is for this reason that businesses plying their trade in this
industry must endeavor to train their personnel to appreciate and accommodate people from diverse
backgrounds around the world. As such, diversity not only facilitates easy understanding of different cultural,
social and economic perspectives but enhances the delivery of satisfactory services as well, through
communication and observation (Merchant, 2011)
Employment
Diversity in the hospitality and tourism industry is enhanced through visions that promote equal employment
opportunities to cater for the different nationalities in the market. The industry gets to appreciate the world's
socio-cultural and economic differences through the recruitment of people of diverse backgrounds. As such,
businesses in this industry need to establish organizational policies that not only discourage discrimination but
also encourage intercultural activities such as cultural educational programs and forums. Businesses also should
employ organizational structure that comprise of people from different regions and races and spread key
appointments to qualified staff from across the board (Merchant, 2011)
Service
As global competition and market consumption change the expanding service sector, quality plays an increasingly
essential role in both attracting and retaining service customers (Helms and Mayo, 2008).
Service quality and the degree of satisfaction derived from service quality are becoming the most important
differentiating factors in almost every hospitality environment (O’Neill and Palmer, 2004).
For the hotel industry, the increasing competition and expansion of unique services and convenience has forced
hoteliers to continuously search for the competitive advantage (O’Neill, 2005).

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Service is at the top of guests’ expectations, yet few companies offer exceptional service. World-class service does
not just happen; training is important in delivering the service that guests have come to expect (Walker,
2010).Hotels are increasing their investments to improve service quality and the perceived value for guests, so as
to achieve better customer satisfaction and loyalty, thus resulting in better relationships with each customer (Jones
et al., 2009). Relationship quality has a remarkable positive effect on hotel guests’ behavior: it creates positive
word of mouth (WOM) and increases repeated guest rates (Kim etal., 2001).
Technology.
Technology is a driving force of change that presents opportunities for greater efficiencies and integration for
improved guest services.
Technology has become a tourism business activity in development of strategic resources and is considered as a
tool to increase competitiveness. Effective use of information technology can make significant operational
improvements. Advanced software and communication tools allow enlarging operational efficiency, for example,
orders may be made better, faster and cheaper. In addition, decision-making through decision support tools,
databases and modeling tools assist the manager’s job. Technology changes the tourism business rules. More
specifically: Information on all tourist services is available virtually from all over the world.
Marketing opportunities are expanding. Technology on wireless communication systems enabling voice, text
and data communication among employees, managers, departments and guests is now being adapted by hotels.
Comprised of intelligent system software and lightweight, hands-free or handheld communication devices, these
systems allow hotel staff to deliver the best customer service. Examples of wireless communication solutions for
the hospitality industry include: communication badges, food and drinks ordering systems, as well as devices that
allow hotel agents to check-in and check-out guests, process credit cards, print receipts and program room keys
anywhere in or nearby the hotel. Wireless technology offers, among others, the following benefits for hotels and
the quality of service they can provide to the guest:

 Increases staff productivity and reduces response time to satisfy guest requests.
 Improves overall guest satisfaction and service.
 Increases efficiency for restaurants (bars,cafeterias, etc.) and caterers by saving time, reducing human
errors and by providing higher quality customer service.
 Reduces queues at the reception desk and allows guests to check-in and check-out closer to where their
room is.
Demographic changes.
The global population is gradually increasing and many retirees have the time and money to travel and utilize
hospitality services. According to the United Nations, population ageing is increasingly becoming one of the most
salient social, economic and demographic phenomena of our times.

The population volume decreases, migration (internal and international) increases, and age, gender, educational
and household structures have all changed in recent years and will continue to changeup to 2020. Demographic
change can affect different aspects of tourism. It impacts directly on tourist demand(volume and structure) and
the tourism labor market (number of workers and their qualifications)and has an indirect effect on jobs within
the tourism industry and tourism services (type and quality of sector-specific and enhancing infrastructure).
Population development (volume)

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Migration of the population

Age structure
Gender
Educational structure
Household structure
Household income
Price-value
Price and value are significant factors to the more perceptive guests of today. Customers and their perceptions
about price have changed. Guests are resistant to paying more (instead, they prefer to get more for less) and
tourism enterprises should take measures in order to solve this problem. The key word today is "value." Value is
what you get compared to what you pay. Here are the top five elements that create value for maximized guest
satisfaction.

 Guestroom design (size, comfort, roomequipment, kitchenette, entertainment, heating /ventilation / air
conditioning, cleanliness).
 Physical property - exterior, public space (cleanliness, landscaping, size, architecture).3.
 Interpersonal service (service friendliness, attentiveness, professionalism, personal recognition)
 Functional service (service speed, efficiency, check in and checkout efficiency)
 Food and beverage related services (sanitation, quality, atmosphere, room service, variety, good prices).
7.2 TRENDS IN THE DEVELOPMENT OF TOURISM LODGINGS
Future trends of hospitality
The future trends in the hospitality industry can be summarized as follows:

 More green and eco-lodgings.

 Development of mega hotels (multi- purpose facilities with casino, shops, theatre, theme park, etc.).
 More boutique hotels.
 Intelligent hotels with advanced technology using the guest’s virtual fingerprint in order to perform all the
operations (check-in, charges, check-out, etc.).
 Increasing employee salaries in order to retain the existing staff.
 More emphasis on the internet and technology.
 Guests’ virtual and physical social networks will be the best distribution channels.

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