MPTH 112

Lesson 1: NATURE OF TOURISM AND HOSPITALITY INDUSTRY

 The Tourism and Hospitality industry is dynamic, complex, and highly interconnected.
 The study requires multi-disciplinary and inter disciplinary approach.
 Tourism is often referred to as an “engine of socio-economic growth and prosperity.
Characteristics of Tourism and Hospitality Products

 Tangible
- Hotels
- Restaurant

 Intangible
- The speed of check in procedure at the Front Desk
- The attitude of the Food Server
- The queue at the museum entrance
Major Factors that Influence the Industry
They include issues pertaining to:

 Globalization
 Safety and security,
 Health and wellness
 Diversity
 Service Expectations
 Technology
 Green Practices
 Legal Issues and
 Changing travel interests
ISSUES AFFECTING THE INDSUTRY

Accessibility Climate Change Animal Rights

Inclusivity Sustainability Gender Sensitivity
Artificial Use of Information and Globalization
Intelligence Communication Technologies
Authentic Experiences Child Protection in Tourist Destination Changing Preferences
Niche Segments Ethnic Rights Health and Wellness
Diversity Foreign Relations Immigration Policies
Green Practices Risk, Safety and Security New Demographics
Virtual Tourism Special Interest Tourism Role of Women
Politics Protection of Local Culture Environment Issues
 New Paradigms in Tourism and Hospitality

 Experience Economy
 Creative Tourism Model
 Sharing Economy
 Need for Learning and Enrichment
 Authenticity versus Commodification
 Anthropocene
 Cultural Appropriation and Cultural Appreciation
 Use of Big Data Analytics
 Engagement and Connectivity
EXPERIENCE ECONOMY
- It can help organizations design a customer focused company that manages the
intangible while focusing on revenues and profits.
- It can be achieved by 4 E’s:
 Education – “edutainment”
 Entertainment
 Esthetic (Aesthetic)
 Escapist
CREATIVE TOURISM
- It is “travel directed toward an engaged and authentic experience” with participative
learning in arts, heritage, or special character of a place.
- It is based either on the destination or activity.
- It requires active involvement of visitors in co creating their experiences.
SHARING ECONOMY
- Its objectives are to provide speed, flexibility, convenience, and efficiency thru a
shared economy.
- Example is mobile application to rent cars grab and uber.
- This is the result of the rise of collaborative economy, increasingly demanding
consumers and the need for transparency and interactive communication.
LEARNING AND ENGAGEMENT
- Vacation that includes experiences to learn that “provide greater insights, increased
understanding and personal connection to the people and places visited”.
- This is providing authentic and interactive experiences such as Guided expedition to
Antarctica.
AUTHENTICITY VS COMMODIFICATION

 Authenticity – It means that the product is not manufactured specifically for the
market.
  Commodification – A process by which things and activities come to be evaluated
primarily in terms of their exchange value, in a context of trade.
Examples:
- Tribes of Cordilleras are encouraged to wear costumes for photo opportunities.
- Whang Od (last remaining tattoo artists) came to Manila for a “meet and greet”
during tourism event.
Issues with “Staged Experience”

 Disrespect for the culture and traditions

 Exploitation of the local residents
 Tourist oriented prostitution
 Reduces interests to visit the actual site.
 Destroy the authenticity of local cultural products.
 Discourages desire to see authentic culture and traditions.
 Residents are required to “play native”.
ANTHROPOCENE
- The Anthropocene paradigm refers to the “assertion that the human influence has so
come to dominate all non-human processes that it can now be potentially identified
as a district layer in the geological record.
- Anthropocene ecotourism wherein the “problems resulting from capitalist
development are transformed into new tourism products”.
Examples of Anthropocene:

 War Tourism (Museum in Cambodia)

 Disaster tourism (Post Hurricane Katrina tours) Slum tourism
 Extinction tourism (must see attractions before they disappear)
 Volunteer tourism
 Scientific Tourism
CULTURAL APPROPRIATION VS CULTURAL APPRECIATION
Cultural Appropriation – occurs when a person from one culture adopts the fashion,
iconography, trends, or styles from one culture.
- It refers to as “privileged culture borrowing or stealing from a marginalized culture
and strips elements of the culture to use it as a prop or for profit”.
- It occurs without any real understanding of why the original culture took part in the
activities.
Cultural Appreciation – is when someone seeks to understand and learn about another
culture in an effort to broaden their perspective and connect with others cross culturally.
- It is important to think about the context and symbolic significance of the traditions
or cultural icons as well as your personal intention in using it.
USED OF BIG DATA ANALYTICS
Big Data ––“the synthesis of the large amount of information, experiences, feedbacks, and
thoughts, that is a structured or unstructured way, people around the world create and
share instantaneously.
- Big Data Analytics can review visitor patters, previous contact and past behaviors and
recommended specific services based on individual preferences.
ENGAGEMENT AND CONNECTIVITY
- Internet and Communication Technologies (continues to change the way people
communicate, do business, and consume products.
- These technologies that enable tourist to engage and immerse themselves to travel
experiences:
 Internet
 Mobile applications
 Virtual reality
 Artificial intelligence
 Holograms
 Beacons
ECONOMICS
- It is the study of resource management.
- These resources are classified into man (labor), machine (land and raw materials)
and money (capital).
- It refers to the relationship between demand and supply under different market
scenarios and circumstances.
- It is also referred to as the analysis of choices based on scarcity and opportunity.
- Tourism Economics review the economic development of a destination, the dynamics
between the laws of supply and demand, investment, foreign exchange, taxation,
employment and other factors.
TOURISM BASKET OF GOODS
The “Basket of Goods” concept can be used to understand the economics of tourism.
This “denotes a set of available consumption goods in which the consumer picks up the
preferred quantity for each good based on substitutability, complementarity and its
lexicographic order”.

 SUBSTITUTABILITY – Consumer choose between available products and services that

are interchangeable which can be substituted for one another.
 COMPLEMENTARITY – The right combination of products and services will encourage
more revenues.
 LEXICOGRPAHIC ORDER – Pair of elements within basket wherein one good is always
preferred over another one.
 MACROECONOMICS AND MICROECONOMICS
MACROECONOMICS

 Looks at the big picture.

 Highlights factors that directly affect the entire industry
 Review the global impact of major issues.
 Seeking solutions to central bank policies, fiscal laws and legal regulations.
MICROECONOMICS

 Focuses on details.
 Emphasizes factors that directly influence an organization.
 Studies the effects of key concerns
 Finding answers to number of workers, pricing strategies and possible damage.
ANALYSIS USING SWOT
- It is a technique used to review the internal and external position of an organization
in relation to the business landscape.
- The acronyms refers to four variables: S - Strengths; W - Weaknesses; O -
Opportunities and T - Threats which are the main factors that influence an
enterprise.
- It is an analysis yields two key advantages:
 distinctive competencies
 Opportunities to take advantage
Porter’s Five Forces Model
It enables organization to analyze the industry based on the following criteria:

 Rivalry among competing sellers

 Threat from new entrants
 Bargaining Power of buyers
 Bargaining power of suppliers
 Competition from substitute products
Lesson 2: THE TOURISM AND HOSPITALITY PROFESSIONAL
EMPLOYMENT
1. Direct
 Deals with the demand-side of the business, refers to jobs where employees
have face-to-face contact with tourists.
2. Indirect
 Works with the supply side, includes jobs with intermediaries such as
restaurant suppliers, contractors, marketing consultants and handicraft
producers.
Employment in the Industry
 - International Labor Organization (ILO) describes it as “labor-intensive where working
conditions are often precarious due to the seasonability, low wages, low union
density and long working hours.
- It “provides opportunities for women, young adults and migrants who generally
receive limited training.
- Women represent as much as 70% of the global tourism workforce.
Forecasts
- WTTC forecasted that by the year 2030, there will be 1.8 million international tourists
(UNWTO,2011).
- IATA reveals that there will be 7.8 billion air passengers by 2036.
- Data from Economic Impact of Travel and Tourism2015 Annual Update Summary
reports that total travel and tourism gross development product(GDP) will grow at an
average of 3.8% per year from 2015 – 2025.
- The industry are projected to generate 72.9million new jobs
Diversity in Workplace

 Diversity – “the mix in the workplace of people from different race, cultures and
backgrounds”
 “Cultural Diversity refers to the cultural differences between people that includes
language, manner of dressing, traditions, morality, religion, social organizations as
well as the way they interact with the environment.
Layers of Culture
1. Internal Dimensions
- Refers to demographic information such as age, gender, ethnicity, sexual
orientation, race and physical ability.
2. External Dimensions
- Includes person’s appearance, work experience, educational background,
recreational habits, personal habits, income, marital status, parental status,
and geographic location.
3. Organization Dimensions
- Involve the job, position, management status, union affiliation, work location,
seniority, division/department/unit group, work content and functional level.
21ST Century Skills
Written and verbal communication Technical
Human Relations Conceptual
Analytical Decision-making
Digital capabilities Critical thinking
Initiative Maturity
Confidence Willingness to learn
Ability to work independently and with a team Ability to think quickly
Integrity
Ethics in the Workplace
Ethics – “a set of moral principles, especially ones relating to or affirming a specified group,
field, or for of conduct”
- from Greek word “ethikos” – “of or for morals”.
Morals – from Latin word “mos” – “distinction between right and wrong”
10 Ethical Principles for Tourism and Hospitality Managers

 Honesty
 Integrity
 Trustworthiness
 Loyalty
 Fairness
 Concern and respect for others
 Commitment to excellence
 Leadership
 Reputation and morale
 Accountability
Career Paths

 Front Line – These are also referred to as rank-and-file employees.

 Supervisory – They are tasked with responsibilities including monitoring and
coaching front-line employees.
 Managerial – These positions involve budgeting, analysis, planning and change
management in order to help employees and the organization.
 Executive – These are heads of an organization. They may be either owners,
corporate executives or both. They have limited contact with the customers since
their role is more strategic in nature.
 Entrepreneurs and Business Owners
Career Opportunities in the ASEAN Region

 The Association of Southeast Asian Nations (ASEAN) Mutual Recognition Agreement

on Tourism Professional (MRATP) enables qualified professionals from member-
countries to work in any country within the region.
 The ASEAN member countries:
- Brunei
- Cambodia
- Indonesia
- Lao
- Malaysia
- Myanmar
- Philippines
 32 Job Titles under MRA-TP

Lesson 3: SOCIOLOGY OF TOURISM AND HOSPITALITY

Definition of Sociology
- It is the “study of groups and group interactions, societies, and social interactions
viewed from the micro level composed of individuals and small groups to macro
analysis of trends between large groups and societies
- It is studying motivations and the influence of beliefs, perceptions, norms and rituals
on decision-making.
The Sociology of Tourism

 Tourists and their Behavior

- Changing demographics, preferences and interest.
- Company shifted from company-centric to one where travelers are now co-
creators, co-producers and Co-evaluators.
 The Relationship of Tourists with the Local Community
- Locals may become antagonistic when scarce resources are being used to
infrastructure development.
- Staged of local traditions and rituals may resulted to loss of dignity and pride
on the part of the community.
 - The influx of tourists can result exploitation, unsafe working environment and
unregulated businesses.
 Structure of the Tourism System
- Created a need for alliances with competitors, stronger relationships with
suppliers and the creation of a network of collaboration among sectors.
- Collaborative commerce where ICTs facilitates the sharing of resources and
creation of partnership.
 Socio-economic and Socio-cultural Impact of Tourism
- Socio-economic – foreign exchange, income, employments, prices,
distribution of benefits, ownership and control, development, and
government revenues.
- Socio-cultural – community involvement, nature of interpersonal relations,
bases of social organization, the rhythm of social life, migration, division of
labor, stratification, distribution of power, deviance, customs and the arts.
Typologies of Tourists
- Typology based on Tourist Personality and Interests – destinations rise and fall in
popularity because they appeal to specific types of tourist over time, and follow a
relatively predictable pattern of growth and decline in popularity.
- Typology based on Tourist Personality and Interests – Types of Tourists:
 Allocentrics – adventure-seekers interested in new travel experiences. Prefer
to immerse themselves in unique cultural encounters.
 Mid-centrics – willing to experience new travel experiences within their
comfort zone.
 Psychocentrics – conservative, inhibitive and unadventurous.
- Typology based on Familiar versus New Environments – “tourist experiences moving
across a continuum of novelty, familiarity, and strangeness depending individual
preferences and the institutional settings.
 Organized Mass Tourists – Choose package tours with fixed itineraries.
 Individual Mass Tourists – wants control of the itinerary and time allocation.
 Explorers – Interested in new experiences but insist comfort and security.
 Drifters – Prefer authentic experiences.
Motivation to Travel
1. Money
2. To help others in need
3. For leisure
4. Social media
Barriers to Travel:
1. No money
2. Have no time
3. Health
 4. Age
5. Safety and security
6. Fear:
 Hodophobia (Fear of traveling)
 Aerophobia (Fear of being in an airplane)
 Vehophobia (Fear of driving)
 Amaxophobia (Fear of riding in a car)
 Thalassophobia (Fear of sea travel)
 Siderodromophobia (Fear of Trains)
 Escalaphobia (Fear of Escalators)
 Claustrophobia (Fear of Enclosed Spaces)
Lesson 4: MANAGING A SERVICE-RELATED BUSINESS
SERVICE ENCOUNTER

 This is defined as the actual interaction between the organization and its customers
who evaluate the interaction based on the perceived benefits they received.
 Walt Disney Company is the best example of the concept of service in tourism.
 “Guestology” originated by Bruce Laval of WDC means that “all the organization’s
employees must treat customers like guests and manage the organization from the
guest’s point of view.
 Used to “refer to the person-to-person interaction or series of interactions between
the customer and the person delivering the service.
 An encounter is the period of time during which the organization and the guest
interact. The length of a typical service encounter will vary from one service
providers or organizational type to another.
Moment of Truth
- These are key instances of contact between a tourist and a representative of an
enterprise.
- These can be experiences with the brand, personnel, product or service of tourist-
related organization wherein the customer gets an opportunity to form an
impression.
It occurs in Three Stages:

 Pre-Purchase
- All aspects related to interaction between a visitor and an organization before
purchase.
- Selection from alternatives and substitutes.
 Purchase
- This covers actions related to the actual purchase including but not limited to,
the final selection of a product, the mode of payment, as well as the attitude
of the staff and the environment where the sales takes.
- Expectation versus Actual Experience
  Post-Purchase
- Interaction happens after sale.
- An important phase that can lead to either customer loyalty or dissatisfaction.
- Comparison of experiences with the expectations formed at the pre-purchase
and purchase stage.
TOURIST EXPERIENCE
- To create memorable experience to remain competitive.
- An mixture of inputs and processes created along a value chain.
- It is also influenced by individual motivations and preferences; shared experiences;
knowledge of the destination and its attractions as well as noncontrollable issues
such as weather, traffic and irregular internet connection.
FOUR TYPES OF TOURISM EXPERIENCES
1. Conventional Tourism Experience
- Company-centric approach of creating prefabricated experience and delivery
it to mainly passive tourist consumer.
- Technology does not constitute a part in the experience.
2. Co-Creation Tourism Experience
- Experiences that are actively created by the tourist consumer in conjunction
with the company.
3. Technology Tourism Experience
- This is determined by a high level of technology use, with low level of
consumer involvement remains predominantly company-centric.
4. Fully Technology-Enhanced Tourism Experience
- This experience maximizes the potential offered by both elements of co-
creation and technology.
CO-CREATING THE TOURISM EXPERIENCE

 It introduced the concept of value co-creation referring to mutual benefits that can
be derived by customer and the organization
 It has been defined as “joint activities by parties involved in direct interactions,
aiming at contributing to the value that emerges for one or both parties”
ADVANTAGES

 It reduces employee costs

 It allows management to re-assign personnel to more critical tasks
 It eliminates the need for additional staff
 It helps manage the guest expectations
 It helps save time for guests
DISADVANTAGES

 It increases safety risks for both organization and guest

  It requires additional training for staff who need to be extra attentive to the guests
but can irritate some guests who are familiar with experience
 It increases costs for the purchase, installation and management of sophisticated
technology that is accessible across all types of gadgets
 It increase costs of maintaining equipment
FOUR TYPES OF SERVICE FAILURES
1. Service Product Failures
- Problems related to the actual product or the service system.
2. Failure to meet Customer Requests
- These are specific tourists requests that were not provided
3. Failure caused by Employee Action or Inaction
- These include any inappropriate behavior
4. Failures caused by other Guests, Natural Phenomena or any Circumstance beyond
the control of the Organization
SERVICE QUALITY

 It is identified as a key in differentiating service products and building a competitive

advantage in tourism
 According to Hudson – “70% of customers will use the same company again and 50%
will recommend products and services if they receive excellent customer service.
Four Gaps Concerning the Delivery of Service Quality
1. GAP #1: NOT KNOWING WHAT THE CUSTOMER EXPECTS
- This refers to the gap between the guests’ expected service vis-à-vis the
perceptions of management.
2. GAP #2: WRONG SERVICE QUALITY STANDARDS
- This occurs when management perceives as customer expectations do not
match service quality perceptions.
3. GAP #3: SERVICE PERFORMANCE GAP
- This happens when management’s perception of customer expectations
influences the external communication to customers.
4. GAP #4 WHEN PROMISES DO NOT MATCH DELIVERY
- This occurs when there are discrepancies between external communication
for customers in relation to the service provided.