INTRODUCTION TO THE HOSPITALITY INDUSTRY

Hospitality Industry
Hospitality is known as travel and tourism that provides accommodation, food and drinks, and other
facilities required by guests.
Hospitality Industry is an umbrella term for a broad variety of service industries, including but not
limited to hotels, restaurants, casinos, catering enterprises, resorts and clubs.
Origin and Growth
Origin- Hotel Industry it has started from travel and tourism. Purpose- business, medical, studies,
pilgrimage or any reason.
Caravan – people use to take journey on animals such as horses, camels and elephants.
Inns – were generally run by families or husband-wife, who provides large hall to the travelers to make
their own bed along with their animals and sleep on floor.
Throughout the world they were known by different names:
India – Dharamshala and Sarai
Japan – Ryokans
Spain – Paradors
Portugal – Pousadas
America – Coffee Houses
Europe – Taverns and Inns
France – Cabarets and Hostelries
Switzerland – Mansionis and Hospitia
Greece – Phatnal
China – Relay Houses

Tourism – people moving from one place to another, it can be by group or individual.
Types of Tourism
1. UNWTO – United Nations World Tourism Organization
2. International Tourism – visiting to other countries or people visiting to foreign country.
3. Inbound Tourism – tourist entering in a particular country.
4. Outbound Tourism – Tourist leaving their own country and entering in another country.
5. Domestic Tourism – people moving within their own country.

Hotel – It is a place where a bonifide traveler can receive food and shelter and provided he is a position
to pay for it and he is in a fit condition to be received.
Evolution and Growth of Hotel Industry
The origin and growth of hotel industry can be discussed under following periods:
1. Ancient Era
2. Grand Tour
3. Modern Era
Thomas Cook – first person to make world tour from Leicester to Loughborough

GROUP 1 (Vision VS. Reality: The Hospitality Service Strategy)

Guestology – the study of guests – their wants, needs, expectations, and behaviors – with the aim of
aligning the organizations strategy, staff and systems so as to provide outstanding service to guests.
Bruce Laval – originated the term of guestology form The Walt Disney Company.

THREE aspects of guest experience:

 1. Service Product – sometimes called the Service package
2. Service Setting – another term of Service environment/Servicescape
3. Service Delivery

Service – is as the intangible part of a transaction relationship that creates value between a provider
organization and its customer, client or guest. Or in a simple way something that is done for us.
VIP – Very Individual People
KSAs – Knowledge, Skills and Abilities
Guest Experience – a term that we have already repeatedly mentioned and will recur many times in the
following pages.
Service Encounter – is often used to refer to the person to person interaction or series of interactions
between the customer and the person delivering the service.
Critical Incident – another term often used in the services literature.

THREE benchmark firms in the Hospitality Industry

1. Quality
2. Value
3. Cost

GROUP 2 (Competitive Advantages of Service Quality in Hospitality and Tourism)

Competitive Advantage - is the advancement of the company’s products and services over their
competitor’s product and services
3 Determinants in creating competitive advantage:
1. Benefits – help a company to grow its market share, increase its profits, and expand into new
markets.
2. Target Market – a company must establish its target market to further engrain best practices
that will maintain competitiveness.
3. Competition - anything that gives a company an edge over its competitors, helping it attract
more customers and grow its market share.
Types of Competitive Advantage
Comparative Advantage – is an economy’s ability to product a particular good or service at a lower
opportunity cost than its trading partners.
Differential Advantage – is the set of benefits you are able to provide profitably, everyday within your
normal operation that are relevant to the purchasing decision of a significant portion of purchasers of
your category, that your competitors cannot duplicate as routinely or as profitably.
Core Competence – can be characterized as the principal quality of a business which incorporates a one
of a kind mixes of different assets, learning and abilities. It is the significant skills that gives at least one
continuing competitive advantage to the organization in making and conveying apparent advantages to
clients.

FOUR elements of Core Competencies: (Prahalad and Hamel, 1990)

1. Specific
2. Collaborative
3. Integrated and Applies Knowledge
4. Skills and Attitude
Sustainable Competitive Advantage - are a set of assets, characteristics or capabilities that allow an
organization to meet its customer needs better than its competition can.
Types of sustainable competitive advantage:
1. Sustainable Practices – engaging in sustainable actions not only benefits the planet but also the
competitive position of a hotel. This could involve reducing waste, conserving energy, using local
and sustainable food sources and more.
2. Quality Service and Unique Experiences – providing high-quality service and unique experiences
can help a business stand out from competitors. This could involve offering local cultural
experiences, personalized services or luxury amenities.
3. Innovative Technology - the use of innovative technology can also be a competitive advantage.
This could involve using technology to improve booking processes, customer service, or
operational efficiency.
4. Strong Brand and Reputation – a strong brand and good reputation can attract customers and
make them more likely to choose your business over competitors. This could be built through
effective marketing, positive customer reviews and consistent service quality.
5. Strategic Location – being in a desirable location can also be a competitive advantage. This could
involve being close to popular tourist attractions in a beautiful natural setting or in a convenient
urban location.
6. Participatory Leadership – this involves including employees in decision-making processes,
which can lead to increased job satisfaction and better service delivery.