Introduction to Hospitality

Industry
Hospitality Industry definition:

It is a broad category of fields within the Service Industry that includes lodging, event
planning, theme parks, transportation, cruise lines, travelling and additional fields within
the Tourism Industry. It primarily involves addressing customer satisfaction and catering
the needs of guests.
Hospitality Sectors:

Accomodation:
● Bed and Breakfasts
● Hotels, Resorts and Hostels
● Apartments
Food and Drink:
● Restaurants and bars
Tourism and Travel:
● Travel Agents, Tour-operators, OTAs
● Cruises
● Car Rentals
● Casinos
● Meeting – Conference centres
• 1600s—More than 600 inns were registered in England; the English and French governments began
to introduce laws regulating them. The first guidebooks for travelers were published in France.
• 1760s—The Industrial Revolution spurred the construction of hotels across Europe and the United
States.
• 1800s — The Tremont House in Boston was the first hotel to provide inside toilets, locks on the
doors, and bellboys.
• 1862—Le Grand Hôtel Paris opened, the largest and most luxurious in Europe, decorated by top
painters.
• Early 20th century—The early years of the twentieth century saw the construction of new luxury
hotels: The Ritz in Madrid, the Savoy in London, etc. During this period, Switzerland built its first ski
resorts.
1927—Hot Shoppes was founded in Washington, D.C., a hospitality company that later became
Marriott Corp.
• 1950s—After the Great Depression and the war, the fifties saw a second boom in the hotel industry,
including the advent of Club Med, the first casino hotels, the first hotels developed by airline
companies, and new resorts flourishing around the Mediterranean.
• Latter half of the 20th century—Thanks to various social and economic factors, middle-class
people had more time and money to indulge in travel. Hotels began to diversify and offering a more
varied range of services.
• 1980s—The third boom in the hotel industry began in 1980. International hotel chains (mostly
American) expand in Europe, the Middle East, and Asia.
• Digital age—Software companies began developing new tools for the hospitality industry that are
still evolving today, including customer databases and systems for reservations, room and
housekeeping management, customer preferences, loyalty programs and more.
• 1993—The travel industry was quick to take advantage of the advent of the Internet, giving
customers the opportunity to compare, book and review hotels from their home computer.
• Early 21st century—Global corporate hotel chains merge and acquire each other.
InterContinental Hotel Group now owns Holiday Inn and Crowne Plaza; Marriott owns
Renaissance; AccorHotels owns the brands Raffles, Sofitel and Novotel.
• 2009—AirBnB is founded, challenging the hotel industry by attracting tourists and taking
market share. Hotels respond with creative marketing approaches, including social media
campaigns and personalized customer experiences created through smart devices.
• 2014—The Waldorf Astoria New York is sold to the Chinese Anbang Insurance Group for
$1.95 billion, the most ever paid for a hotel.
• 2015—The First World Hotel in Pahang, Malaysia, expands to become the largest hotel in the
world, with 7351 rooms.
Founders of the Hotel Industry

- Exploring the history of hotel industry pioneers like Statler, Hilton, Marriott, Wilson, and
Schultz offers a chance to connect with the industry's heritage.
- Studying the achievements and contributions of these founding figures provides valuable
insights into the lineage of hoteliers.
- Understanding the innovations and efforts of these individuals who shaped the modern
hotel industry can offer valuable lessons and inspiration for aspiring professionals in the
field.
- Reflecting on the historical roots of the industry may assist future hotel professionals in
their own career planning and development.
E. M. Statler
- Exploring the history of the modern hotel industry involves recognizing key pioneers driven by
ambitions for significant wealth and fame.
- Ellsworth M. Statler (1863–1928) played a pivotal role by establishing the renowned Statler
chain of hotels.
- Statler's hotel in Buffalo, New York, notably operated during the Pan-American Exposition of
1901.
- The Statler chain extended to cities including Boston, Cleveland, Detroit, New York City, and
St. Louis.
- In 1954, Conrad Hilton acquired the Statler chain of hotels from Ellsworth M. Statler.
Conrad Hilton

● Conrad Hilton (1887–1979) achieved success in the hotel industry following World War I by
acquiring properties in the Texas oil boom.
● In 1919, he purchased the Mobley Hotel in Cisco, Texas.
● In 1925, Hilton constructed the Hilton Hotel in Dallas, Texas.
● His acquisitions during and after World War II included notable properties like the
3,000-room Stevens Hotel (now the Chicago Hilton), the Palmer House in Chicago, and the
Plaza and Waldorf-Astoria in New York City.
Cesar Ritz
Cesar Ritz was a hotelier at the Grand National Hotel in Lucerne, Switzerland. Because of
his management abilities, “the hotel became one of the most popular in Europe and Cesar
Ritz became one of the most respected hoteliers in Europe.”
Influencing Factors: Internal, within the company control.

MANAGEMENT CHANGE
CONFLICTS 05 PRICING STRUCTURE

01 04
PRODUCT

LOCATION AND
ACCESSIBILITY

02 03 TYPES OF FACILITIES AND

SERVICE STANDARDS
Influencing Factors: External factors
Service Characteristics:
 Types of Accommodation:
Hotels: The most common type of accommodation in the hotel industry, a hotel is defined as an
establishment which offers overnight accommodation, meals and other services. Hotels provide
private rooms, and almost always have en-suite bathrooms.

Resorts: commercial establishment, which will usually consist of a hotel and a variety of additional services
and amenities, on site. Guests will usually have access to lodgings, restaurants, bars,
entertainment options, recreational activities and shops, which can all be accessed without leaving the resort.
Hotel boutique: a small and intimate hotel with an unique character that differentiate itself from other hotel
brands. Main characteristics:
*Size:10-100 bedrooms.
*Design: unique and upscale. Stylish design decor.
*Character: independent spirit.
*Location: fashionable urban areas.
*Service: personalised
*Clients: Smart, fashionable and chic.
Hostels: budget-oriented, shared-room ("dormitory") accommodation that accepts individual travellers
(typically backpackers) or groups for short-term stays, and that provides common areas and communal
facilities. One of the main hostels brands in Europe is Generator Hostels.
Bed and breakfasts (B&Bs): small establishments, which offer guests private rooms for overnight
stays, along with breakfast in the morning. Often, these establishments are converted from private
homes and many B&B owners live in their property. While they are often a budget option, high-end or
luxury B&Bs do also exist.
Hostal: Primarily found in Spain. Budget property offering either private bedrooms or apartments, while
they may also have a bar, restaurant and/or café. Most hostels are family-owned and guests
may sometimes share bathrooms with others.
Aparthotel: type of hotel that has long-term housing for guests, but may still have hotel services like
housekeeping and on-site dining. Apartment hotels usually include a full kitchen and one or more
bedrooms.