THC 228-MICRO PERSPECTIVE IN TOURISM AND HOSPITALITY

LESSON 1: THE MICRO ESSENTIALS

Micro perspective in tourism and hospitality refers to the detailed assessment of

individual components for the overall experience between tourists and service providers. In
tourism, it involves examining the motivations, behaviors, and expectations of individual
travelers. This includes factors like travel preferences, cultural considerations, and the impact of
personal experiences on decision-making. Understanding these elements helps businesses tailor
their offerings to meet the diverse needs of their clientele, thereby enhancing customer
satisfaction and loyalty.

In the hospitality sector, the micro perspective encompasses the study of various
touchpoints between guests and service providers. It involves scrutinizing aspects like customer
service interactions, room cleanliness, dining experiences, and the effectiveness of amenities.
Analyzing these micro-level details enables businesses to identify areas for improvement,
optimize their operations, and create memorable experiences that contribute to positive word-of-
mouth and repeat business. By scrutinizing these components, researchers and industry
professionals gain insights into the factors influencing customer satisfaction, service quality, and
the overall success of businesses within the sector.

Moreover, the micro perspective is crucial for adapting to changing consumer trends and
preferences. As individual preferences evolve, businesses need to stay attuned to these shifts to
remain competitive. By examining the microdynamics, industry stakeholders can identify
emerging trends, capitalize on new opportunities, and address potential challenges.

TOURISM PERSPECTIVE
Tourism refers to the activities of people traveling to and staying in places outside their
usual environment for leisure, business, or other purposes. It encompasses a wide range of
experiences, including sightseeing, cultural exploration, adventure, relaxation, and business-
related activities. The tourism industry is a significant economic sector that includes various
services and businesses catering to the needs of travelers.

TYPES OF TOURISM:
Tourism is a diverse and multifaceted industry, encompassing various types that cater to
different interests, preferences, and motivations of travelers such as:

1. Leisure Tourism:
This is the most common form of tourism, where individuals or families travel for
relaxation, recreation, and entertainment. It includes activities such as sightseeing, shopping,
dining, and engaging in cultural experiences.

2. Business Tourism:
Also known as corporate or professional tourism, this type involves individuals traveling
for business purposes, such as attending conferences, meetings, exhibitions, or trade shows.
Business travelers often combine work-related activities with leisure.

3. Adventure Tourism:
Adventure tourism attracts thrill-seekers looking for activities that involve physical
challenges and a sense of excitement. This can include activities such as hiking, rock
climbing, bungee jumping, and extreme sports.

4. Ecotourism:
 Ecotourism focuses on responsible travel to natural areas that conserve the environment,
respect local cultures, and contribute to the well-being of local communities. It aims to
minimize the impact on ecosystems and promote conservation.

5. Cultural Tourism:
Cultural tourism involves travelers seeking experiences that immerse them in the history,
art, and traditions of a destination. This can include visits to museums, historical sites,
festivals, and cultural events.

6. Medical Tourism:
Medical tourism involves individuals traveling to other countries to receive medical
treatments, surgeries, or wellness services. Factors like lower costs, specialized treatments,
and a combination of medical care with leisure contribute to its popularity.

7. Heritage Tourism:
Heritage tourism focuses on the preservation and promotion of historical and cultural
heritage. Travelers visit sites with historical significance, such as ancient monuments, castles,
and archaeological sites.

8. Educational Tourism:
Educational tourism involves travel to learn and gain new knowledge. This can include
study-abroad programs, language immersion courses, and educational tours to museums and
historical sites.

9. Culinary Tourism:
Culinary tourism, or food tourism, centers around exploring and experiencing the local
cuisine of a destination. Travelers seek authentic food experiences, including trying local
dishes, attending food festivals, and taking cooking classes.

10. Sports Tourism:

Sports tourism involves travel to participate in or spectating sports events. This can range
from major international sporting events to local competitions and tournaments.

11. Religious Tourism:

Religious tourism involves travel motivated by faith, pilgrimage, or spiritual reasons.
Travelers visit religious sites, shrines, and places of worship significant to their beliefs.

12. Luxury Tourism:

Luxury tourism caters to high-end travelers seeking exclusive and premium experiences.
This can include luxury accommodations, fine dining, private transportation, and
personalized services.

13. Disaster Tourism:

Disaster tourism, also known as dark tourism or "black tourism," involves travel to
destinations that have been affected by natural or man-made disasters. Instead of seeking
leisure or recreational activities, visitors are drawn to these locations to witness and
understand the aftermath of catastrophic events. It can include both historical disasters and
more recent or ongoing crises. Examples of disaster tourism destinations might include areas
affected by earthquakes, tsunamis, hurricanes, industrial accidents, or war zones.

14. Dark Tourism:

Dark tourism is a broader term that encompasses a range of tourist activities
associated with death, suffering, and the macabre. It includes disaster tourism but extends
beyond natural or man-made disasters to encompass sites associated with death, crime, or
tragedy. Dark tourism destinations may include places like cemeteries, battlefields, prisons,
concentration camps, and locations tied to historical events with a dark past.
15. LGBTQ Tourism:
LGBTQ tourism, also known as gay tourism or queer tourism, refers to travel that is
specifically targeted toward the lesbian, gay, bisexual, transgender, and queer community. It
involves destinations, accommodations, and events that are LGBTQ-friendly and cater to the
unique needs and preferences of LGBTQ travelers. This form of tourism can include LGBTQ
pride events, gay-friendly accommodations, and destinations known for their inclusivity and
acceptance.

16. Nautical Tourism:

Nautical tourism is a type of tourism that revolves around activities and experiences
related to water travel. It encompasses recreational activities such as sailing, yachting,
cruising, and other forms of boating. Nautical tourism destinations often include coastal
areas, lakes, rivers, and other bodies of water. This type of tourism caters to individuals who
seek leisure and adventure on the water, enjoying activities like sailing trips, yacht charters,
and coastal cruises.

17. Space Tourism:

Space tourism is an emerging form of tourism that involves travel beyond Earth's
atmosphere for recreational, leisure, or adventure purposes. While still in its early stages,
space tourism aims to provide civilians with the opportunity to experience space travel. This
could include suborbital flights, orbital stays, or trips to space stations. Companies like
SpaceX and Blue Origin are actively exploring and developing commercial space travel
options.

18. Festival Tourism:

Festival tourism involves travel with the primary purpose of attending festivals and
events. Festivals can range from cultural and music festivals to food and religious
celebrations. Tourists are attracted to the unique experiences, entertainment, and cultural
immersion provided by these events. Popular examples include music festivals like
Coachella, cultural festivals like Diwali in India, and food festivals that celebrate local
cuisines.

19. Events Tourism:

Events tourism refers to travel that revolves around attending specific events,
conferences, conventions, or exhibitions. Business travelers often participate in events
related to their industries, while others may travel for sporting events, concerts, or other
large gatherings. Events tourism can have significant economic impacts on host
destinations, contributing to local economies through accommodation, dining, and
entertainment expenditures.

20. Rural Tourism:

Rural tourism involves travel to rural areas, often characterized by natural
landscapes, traditional lifestyles, and cultural heritage. Tourists seek a break from urban
life and engage in activities such as hiking, nature walks, agricultural experiences, and
visits to local villages. Rural tourism promotes sustainable development in rural
communities, providing economic opportunities while allowing visitors to connect with
nature and local traditions.

These types of tourism often overlap, and travelers may engage in more than one type
during a single trip, depending on their interests and motivations. The diverse nature of tourism
allows destinations to appeal to a wide range of preferences and demographics.

HOSPITALITY
Hospitality refers to the friendly and generous reception and entertainment of guests, visitors,
or strangers. It is a broad term that encompasses various industries and services, including hotels,
restaurants, travel, tourism, and events. The hospitality industry is crucial for providing
accommodations, food, and services to individuals and groups away from their homes.

TYPES OF HOSPITALITY:

1. Accommodation Hospitality:
This includes hotels, resorts, motels, hostels, and other establishments that provide
lodging for travelers. Accommodation hospitality focuses on providing a comfortable and
convenient place for guests to stay, ranging from budget to luxury options.

2. Food and Beverage Hospitality:

This sector revolves around restaurants, cafes, bars, and catering services. Food and
beverage hospitality aims to offer a diverse range of culinary experiences, including dining,
beverage services, and catering for events.

3. Travel and Tourism Hospitality:

Involves services related to travel and tourism, such as travel agencies, tour operators,
and transportation services (airlines, cruise lines, car rentals). This sector focuses on
facilitating and enhancing the overall travel experience for individuals and groups.

4. Event Hospitality:
Event hospitality encompasses services related to event planning, management, and
execution. This includes conference centers, event venues, and companies that specialize in
organizing conferences, meetings, weddings, and other special events.

5. Spa and Wellness Hospitality:

Spa and wellness hospitality involves establishments that offer relaxation, beauty
treatments, and health services. This includes spas, wellness resorts, and fitness centers that
aim to promote physical and mental well-being.

6. Cruise Hospitality:
This sector focuses on hospitality services provided aboard cruise ships. Cruise
hospitality includes accommodations, dining, entertainment, and recreational activities for
passengers during their voyage.

7. Gaming and Casino Hospitality:

Gaming and casino hospitality centers around entertainment and leisure services provided
in casinos and gaming resorts. This includes accommodations, dining, and various
entertainment options in addition to the gaming facilities.

8. Luxury Hospitality:
Luxury hospitality caters to high-end travelers and emphasizes premium services and
amenities. This can include luxury hotels, resorts, fine dining restaurants, and exclusive travel
experiences tailored for discerning clientele.

9. Theme Park and Entertainment Hospitality:

Theme park and entertainment hospitality involves services provided within amusement
parks, theme parks, and entertainment complexes. This includes accommodations, dining, and
various entertainment offerings for visitors.

10. Educational and Institutional Hospitality:

This type of hospitality includes services provided by educational institutions, such as
campus accommodations, dining facilities, and event spaces. It also extends to hospitality
services within healthcare institutions, government facilities, and other institutions.

11. Club Hospitality:

 Club hospitality involves private clubs, social clubs, and membership-based
establishments that provide exclusive services and amenities to their members. This can
include private clubhouses, dining facilities, and recreational activities.

12. Bed and Breakfast (B&B) Hospitality:

B&B hospitality involves smaller lodging establishments that offer overnight
accommodations and breakfast to guests. These are typically smaller, often family-operated,
establishments that provide a more personalized experience.

13. Extended Stay Hospitality:

Extended stay hospitality caters to guests who require accommodations for longer
durations. This includes serviced apartments, corporate housing, and extended stay hotels
that offer amenities suited for extended stays.

14. Timeshare Hospitality:

Timeshare hospitality involves a form of property ownership or right-to-use
arrangement where individuals or groups purchase the right to use a vacation property for a
specific period. This can include resorts and condominiums.

15. Airport Hospitality:

Airport hospitality focuses on services provided within or near airports. This includes
airport hotels, lounges, and services catering to travelers such as transportation, dining, and
business facilities.
16. Pet-Friendly Hospitality:
Pet-friendly hospitality caters to travelers who wish to bring their pets along. This
includes accommodations, restaurants, and other services that welcome and accommodate
pets.

17. Digital Hospitality:

With the rise of digital technology, digital hospitality involves online services, booking
platforms, and digital experiences provided by hotels, restaurants, and other hospitality
establishments to enhance guest interactions.

18. Ecological or Green Hospitality:

Ecological or green hospitality focuses on environmentally sustainable practices
within the hospitality industry. This includes eco-friendly hotels, resorts, and restaurants that
prioritize environmental conservation and responsible tourism.

19. Boutique Hospitality:

Boutique hospitality refers to smaller, independently owned hotels or restaurants that
offer a unique and intimate atmosphere. These establishments often emphasize design,
individualized services, and a distinctive character.

20. Wellness Retreat Hospitality:

Wellness retreat hospitality centers around destinations that offer holistic health and
wellness experiences. This includes retreats, resorts, and spas that focus on rejuvenation,
relaxation, and overall well-being.

21. Rail Hospitality:

Rail hospitality involves services provided on trains, including dining cars, sleeper
cabins, and other amenities. This can include luxury train journeys or standard rail services
that cater to passengers during their travels.

These types of hospitality collectively contribute to creating positive and memorable

experiences for guests, whether they are travelers, event attendees, diners, or individuals seeking
leisure and recreation. Each sector within the hospitality industry has its unique characteristics
and focuses on specific aspects of guest satisfaction and comfort.
 Chapter Quiz
Instruction: Answer the following questions comprehensively with examples. Write your
answer in the space provided below each number.
1. What is the significance of customer service in the micro perspective of the hospitality
industry?

2. How do hotels implement revenue management strategies at the micro level to optimize
room pricing?

3. In the micro perspective of tourism, what role does the front desk play in creating a
positive guest experience?

4. How does the micro perspective of hospitality address the training and development of
staff?

5. What are the key elements of micro-level marketing strategies for small boutique hotels
in the tourism industry?

6. How do restaurants at the micro level of the hospitality industry tailor their menus to
cater to diverse customer preferences?

7. What role does technology play in the micro perspective of tourism, specifically for small
tour operators?

8. How does a bed and breakfast (B&B) owner at the micro level promote a sense of
community and local culture among guests?

9. In the micro perspective of hospitality, how can small restaurants maintain high-quality
food standards while managing costs?

10. What measures can a small tourism business take at the micro level to contribute to
sustainable tourism?

LESSON 2: TOURISM BUSINESS VALUE CHAIN

A tourism value chain is simply defined as a SYSTEM that describes how private sector
firms in collaboration with government and civil society receive or access resources as inputs,
and add value through various processes (planning, development, financing, marketing,
distribution, pricing, positioning, among others) and SELL the resulting products to
customers. (Hawkins, 2005).

The tourism business value chain is a concept that represents the sequence of activities
and processes involved in the creation, delivery, and consumption of tourism-related products
and services. It is a strategic framework that helps analyze and understand how value is
generated at each stage of the tourism industry. The value chain concept is derived from Michael
Porter's broader idea of value chain analysis in business. In the context of tourism, the value
chain typically includes the following key components:
1. Destination Resources and Attractions:
This is the starting point of the value chain, involving the natural and cultural
resources that make a destination attractive to tourists. These resources can include
landscapes, historical sites, cultural heritage, and recreational opportunities.
2. Destination Management and Marketing:
In this stage, destination management organizations (DMOs) and marketing
entities work to develop and promote the destination. Activities include marketing
strategies, branding, and the development of tourism infrastructure to attract potential
visitors.

3. Tour Operators and Travel Agents:

Tour operators and travel agents play a crucial role in the value chain by creating
packaged tours, handling logistics, and selling travel products to consumers. They act as
intermediaries between travelers and various service providers.

4. Transportation Services:
Transportation services, including airlines, cruise lines, and ground transportation
providers, facilitate the movement of tourists to and from destinations. Efficient
transportation is vital for the overall success of the tourism value chain.

5. Accommodation Services:
Accommodation services, such as hotels, resorts, and vacation rentals, provide
lodging for tourists. The quality and variety of accommodation options contribute
significantly to the overall tourism experience.

6. Tourist Activities and Experiences:

This stage involves the various activities and experiences that tourists engage in
during their visit. This can include guided tours, adventure activities, cultural
experiences, and entertainment options.

7. Food and Beverage Services:

Restaurants, cafes, and other food and beverage establishments contribute to the
overall satisfaction of tourists. Culinary experiences are an integral part of the tourism
value chain.

8. Tourist Services and Facilities:

Tourist services encompass a range of support services such as information
centers, currency exchange, and healthcare facilities. These services enhance the
convenience and safety of tourists.

9. Souvenirs and Retail:

The sale of souvenirs and retail items is an additional component of the tourism
value chain. Local businesses and artisans often benefit from the sale of products that
represent the destination's culture and identity.

10. Tourist Feedback and Reviews:

 Tourist feedback and reviews, often shared online, play a crucial role in
influencing future travelers. Positive reviews can contribute to destination promotion,
while negative feedback can prompt improvements in services.

11. Technology and Booking Platforms:

Technology plays a significant role in the tourism value chain, with online
booking platforms, travel apps, and reservation systems streamlining the process for both
consumers and businesses. These platforms connect travelers with various services,
making bookings more accessible.

12. Government and Regulatory Bodies:

Government and regulatory bodies play a crucial role in shaping the tourism
industry. They establish policies, regulations, and guidelines that impact destination
management, safety standards, and environmental sustainability.

13. Environmental and Cultural Conservation:

Conservation efforts are essential in maintaining the attractiveness of destinations.
Sustainable tourism practices, environmental conservation, and efforts to preserve
cultural heritage contribute to the long-term viability of tourism destinations.

14. Safety and Security Services:

Ensuring the safety and security of tourists is a critical aspect of the value chain.
This involves the presence of law enforcement, emergency services, and measures to
address potential risks and challenges that tourists may face.

15. Tourism Research and Market Intelligence:

Market research and intelligence provide insights into consumer trends,
preferences, and the competitive landscape. These findings help businesses and
destinations make informed decisions and tailor their offerings to meet market demands.

16. Corporate Social Responsibility (CSR):

Many businesses within the tourism industry engage in corporate social
responsibility initiatives. CSR efforts can include community engagement, environmental
conservation projects, and contributions to local development, enhancing the positive
impact of tourism.

17. Public Relations and Destination Image:

Public relations activities contribute to shaping the image and perception of a
destination. Positive media coverage, promotional campaigns, and effective
communication help create a favorable image, attracting more tourists.

18. Global Distribution Systems (GDS):

Global Distribution Systems are platforms that enable travel agents and tour
operators to access and book travel-related services. GDS plays a role in distributing
information and reservations across the global travel network.

19. Crisis Management and Resilience:

Crisis management strategies are crucial for addressing unexpected events that
may impact tourism, such as natural disasters, health crises, or geopolitical issues.
Resilience planning helps destinations recover and adapt to challenges.

20. Tourism Education and Training:

 Education and training programs in tourism contribute to developing a skilled
workforce. This includes training for hospitality professionals, tour guides, and other
service providers, ensuring quality service delivery.
Understanding the tourism business value chain allows stakeholders to identify areas for
improvement, optimize operational efficiency, and enhance the overall tourism experience. It
also helps in forming strategic partnerships among different entities within the tourism industry.

TOURISM VALUE CHAIN

TOURISM MULTIPLIER EFFECT

Source: World Travel and Tourism Council, 2018

 Source: World Travel and Tourism Council, 2018

TOURISM SECTORS

 Transportation
 Accommodation
 Food Service
 Travel Trade
 Cruise
 MICE
 Others
 Chapter Quiz

Instruction: Answer the following questions rightfully. Write your answer in the blank spaces
provided in each test item. Write the letter of your correct choice for numbers 1-8 and below the
test item for 9-20. NX2

______1. In the tourism business value chain, which sector involves the promotion of a specific
location to attract visitors?
A) Transportation B) Accommodation C) Destination Marketing D) Tour
Operators

______2. What segment of the tourism business value chain is responsible for arranging
activities,
excursions, and experiences for tourists during their stay?
A) Accommodation B) Attractions C) Travel Agencies D) Tour Operators

______3. Which component of the tourism business value chain focuses on providing lodging
facilities for travelers?
A) Transportation B) Attractions C) Accommodation D) Destination Mgt.

______4. In the context of the tourism business value chain, what is the intermediary that
connects
tourists with transportation services and accommodations?
A) Destination Mgt. B) Travel Agencies C) Tour Operators D) Attractions

______5. What stage of the tourism business value chain involves the development and
maintenance
of sites or activities that attract tourists?
A) Attractions B) Transportation C) Tour Operators D) Destination Mrktg.

______6. A platform that enable travel agents and tour operators to access and book travel-
related services.

A)GDS B) Tour Operators C) Travel Agency D) CRS

______7. Which of the following is an example of transportation under tourism sector?

A) cruise ship B) coaster C) pump boat D) air force

______8. The following are the examples of hospitality components except:

A) motels B) resorts C) travel & tours D) hotels

9-15. Give at least 7 examples of land transportation services.

16-20. Provide at least 5 transportation services under air travel.

LESSON 3: TRANSPORTATION

Transport or Transportation
is the movement of people and goods from one place to the other.

The term is derived from the Latin words:

/trans/ - ACROSS
/portare/ - TO CARRY
Transportation is further subdivided into:

 Air
 Road
 Rail
 Water
 Others

AIR TRANSPORTATION

Humanity’s desire to fly possibly first found expression in CHINA, where human flight
tied to kites is recorded (as a punishment}. Chinese kite flying is 2500 years old. 6th -century
Emperor, Kao Yang, during an early purge, used an aerodynamic experiment to kill his enemies.

ICARUS is a character in Greek mythology. He is the son of Daedalus and is commonly

known for his attempt to escape Crete by flight, which ended in a fall to his death.

The first generally recognized human flight took place in:

Paris in 1783, a hot air balloon traveled 5 miles invented by the Montgolfier brothers, Joseph-
Michel (1740 - 1810) and Jacques-Etienne (1745 - '99) where two Americans who are generally
credited with inventing and building the world’s first successful airplane making it the first
controlled, powered and sustained heavier-than-air human flight on December 17, 1903 near
Kitty Hawk, North Carolina {Wilbur and Orville Wright}.

D.E.L.A.G (Deutsche Luftschiffahrts-Aktiengesellschaft) or the German Airship

Transport Corporation was the world’s first airline. It was founded on November 16, 1909 with
government assistance.

MEN AND WOMEN OF AVIATION

CHARLES LINDBERG
 Made the first solo crossing of the Atlantic;
 This feat sparked the interest of aviation;

AMELIA EARHART
Lost in an attempt in 1937 to make the longest circumnavigation in the world.

The first countries in Europe to embrace Air Transport were:

 Finland
 France
 UK
 Germany
 The Netherlands

Some of the first countries in Asia to embrace Air Transport were:

India, Hong Kong, Indonesia, Malaysia, and The Philippines

The first country in ASIA to embrace Air Transport is: THE PHILIPPINES

The Philippine Airlines (PAL) was founded on February 28, 1941, making it
Asia’s oldest carrier still operating under its current name. The airline was founded by a
group of businessmen led by Andres Soriano Sr., hailed as one of the Philippines’ leading
industrialists at the time. The airlines’ first flight was made on March 15, 1941 with a
 single Beech Model 18 NPC 54 aircraft, which started its daily services between Manila
(Nielsen Field) and Baguio.

Notably Philippine Airlines leased Japan airlines their first aircraft, A DC-3
named “Kinsei” On July 31, 1946 a chartered Philippine Airline DC-4 ferried 40
American servicemen to Oakland, California from Nielsen Airport in Makati city with
stops in, Guam, Wake Island, Johnston Atoll, and Honolulu Hawaii making PAL the first
Asian airline to cross the Pacific Ocean.

The Aviation System

Aviation is the term used to describe the industry that builds and flies aircraft.

Aircraft Manufacturing:

1. Civil Aviation
- Major Carriers – domestic and international
- Regional Carriers (commuters)
- Supplemental Carriers (Charters)
- Cargo

2. General Aviation
- Private Planes
- Pleasure flying, land surveying
- Flying Instruction
- Agricultural use
- Cargo
- Corporate Jets
- Air Taxi Services

3. Military Aviation
Airport Operations
Aviation Support Industries

It is further divided into two:

Civil Aviation-the industry that flies the public from place to place.

Military Aviation-aircraft flown by a nation’s air force and other branches in the
military.

Civil Aviation, in turn can be divided into:

Domestic service-a flight must start and end within the borders of the
same country.

International service -the flight starts in one country and ends in another.

AIR SERVICES AND ROUTES

1. Scheduled service-is an air transportation that operates regularly at set, advertised

times no matter how many people are booked on the flight.
2. Chartered service-flown by charter airlines, usually sell seats to tour operators. The
occasional nature of their flights, they are not usually advertised and sold the way
scheduled flights are.
3. Privately-owned Jets-In some cases, business travelers usually senior executives fly
on a corporate jet that their company owns.
 4. Fractional ownership-the plane has multiple owners who have set an amount of
flight hours they can use.

FLIGHT TYPES AND ROUTES

1. NON – STOP FLIGHT-traveler goes from Point A to Point B on the same aircraft
with no stop in between.

2. DIRECT FLIGHT-traveler goes from Point A to Point B on the same aircraft but that
aircraft stops at an airport in between. The flight will still have one flight number.

3. CONNECTING FLIGHT-traveler, to get to his destination, must change plane once,

twice or even more times. Each flight will have different flight numbers.

4. ONE-WAY FLIGHT ITINERARY-the traveler goes to point A to Point B.

5. ROUND TRIP FLIGHT ITINERARY-the traveler flies from Point A to Point B,

stays a while and then returns from B to A.

6. OPEN-JAW FLIGHT ITINERARY-traveler flies from Point A to Point B then

travels by ground transportation from B to C, then returns by air from C to A.

7. CIRCLE FLIGHT ITINERARY-traveler has two or more extended stopovers and

returns to the originating city.

CLASSIFICATIONS OF AIRLINES

1. MAJOR/FULL – SERVICE CARRIERS

 Servicing both domestic and international (including long haul) flights

 Usually offers several classes of service

2. REGIONAL – CARRIERS-Also known as feeder airlines because their flights feed

passengers from small cities into big city-airports and help fill the large planes of the
major airlines.

3. LOW COST CARRIERS (LCCs)

 Emerged after the liberalization of Civil Aviation in North America and Europe in 1970’s
 Cheap, point-to-point services without any “frills”
 They offer basic services
 Passengers have the option to pay for extras such as food on board, in the flight
entertainment and checked (in) baggage

AIRLINE HUBS AND SPOKES

1. HUBS-are airline’s centralized operation units, usually near major population centers,
both domestic and international to serve as convergence airports for their route systems.

2. FORTRESS HUBS are airline dominated airports where airline administrative centers
are usually located.

3. SPOKES-Airlines flying smaller planes feed passengers from outlying towns into hub
cities forming the spoke of the hub.
Airline Criteria for Choosing a Hub

 Central location in the area

 Market size, large local population
 Positive competitive environment
 Potential for generating new passenger and freight revenue
 Airport facilities
 Good operating conditions

AIRLINE CODES

 Each airline has a code of either two letters or a combination of letters and numbers
 Are relatively easy to learn because most but not all have some relation to the name of
the airline
 Except those international airlines the came along after the logical codes were given out

CITY CODES

Airports have two names:

 the name of the airport (usually honoring a local hero or the politician in office when the
airport was built)
 IATA 3-letter identifiers

TYPES OF AIRCRAFT

 Engine Type
  Purpose
 Body Width

ENGINE
TURBOPROPS (PROPELLER DRIVEN BY JET ENGINE) OR CONVENTIONAL
TURBINE JET ENGINE

 Seating capacity between 19 to 70 seats

 Short range
 Less carrying capacity
 Less runway requirements
 Commonly cruise at just above 500 km/hr

JET ENGINE

 Seating capacity between 40 – 855 (Airbus A380 – 800)

 Larger aircrafts are for long – haul flights

PURPOSE/MISSION

 SHORT HAUL – 750 miles and up to 3 hours flying time

 MEDIUM HAUL – 751 – 2,500 miles and 3 – 6 hours flying time
 LONG HAUL – over 2,500 miles and 6 – 13 hours flying time
 ULTRA-LONG HAUL – 14 hours and above

The longest non-stop passenger service is between Singapore and Newark (NJ) in an all-
business class configuration by Singapore Airlines

BODY WIDTH
 Narrow-body aircraft
 Wide-body aircraft

CLASSES OF SERVICE

1. FIRST CLASS-is in the compartment at the front of the plane. It usually features, among
other things:

a. wider seats;
b. greater pitch;
c. more recline;
d. more elaborate meals;
e. complimentary alcoholic beverages; and
f. free movies.

2. BUSINESS CLASS-usually sandwiched between the first and the coach class. It
represents a kind of service that’s almost as good as that found in the first class.

3. ECONOMY CLASS- is the more standard level of service also known as the coach class
It features:
a. narrower seats;
b. less pitch and recline; and
c. simple meals or snacks or even no food service at all, except perhaps a bag of
pretzels and soft drink.
 LESSON 3: RAILWAYS, MOTORCOACHES and
CAR RENTALS
Historical Timeline of Railways

Ancient Systems
600 B.C. - Diolkos paved track way which transported boats across the Isthmus of
Corinth in Greece

Pre – Steam
Reisszug (1515), a funicular railway at the Hohensalzburg Castle in Austria – the
oldest operational railway in the world.
1500’s – wooden rails
1700’s – metal railways
 1900’s 1920’s – Golden Age of Railways

Downward Demand
1930's – Pre-World War II – Growth in car ownership and intercity bus services
1980 – Decline of rail service

Two factors:
a. The Airline Industry
b. Railways financial structure – higher fixed cost of railways

Foreign Rail Service

In many countries, railways are still a major form of transportation. Most of these
railways are owned and operated by the government.

Other Factors besides government subsidies account for the survival of passenger
trains:
a. Private Car Ownership – lower compared to US and Canada
b. Price of Gasoline – gasoline is much more expensive in Europe
c. Proximity of major cities in Europe – European capitals are far apart from major
population centers
d. Reliability of rail service
e. Price of Air Travel – rail travel is almost always less expensive

Motorcoach
Commonly known as the “bus” has played a major role in the surface travel industry
throughout the world.

It is the most widespread and the least expensive form of public transportation.

Origin of Motorcoaches. Descendant of a horse-drawn stagecoach in the 1890’s.

Motorcoach as a Travel Product

 Hop on – Hop Off Buses
 Buses travel near major landmarks around the town or city
 Pre-recorded or live commentary about the landscape is provided through small
headphones worn by each passenger.
 Users may leave the bus and board again without limit (hop-on, hop-off) at special bus
stops on a circular route.

Car Rentals
The evolution of the car rental industry is essentially the story of the Hertz Company, started
in 1918 when the 22-year old entrepreneur Walter Jacobs opened the first operation in Chicago
with Model T Fords.

Car Rental Process

Qualifications:
 Valid (international) Driver’s License
 Be of a certain age
 Usually 21 – 65 years old
 Major Credit Card If no credit card – must be cash qualified (deposit)
 Personally responsible
 e.g. employer’s name and address

Rates-vary according to the size of the car and do not include gasoline, taxes, or charges for
extra services.
 a. REGULAR RATE – a standard charge for the day, usually with an added amount for
kilometers driven;

b. SPECIAL RATE – a discount rate for weekends or holidays – can also include an
unlimited kilometer plan

c. CORPORATE RATE – a discount rate for employees of companies with high rental
volume

Makes and Models

SUBCOMPACT
A small car (e.g. Nissan Sentra)

COMPACT
An average-sized car (e.g. Chevrolet Cavalier

STANDARD
A full-sized car (e.g. Subaru Legacy)

DELUXE
A large luxury car that usually comes equipped with many extras (e.g. Lincoln Town Car

CAR RENTAL EXTRA SERVICES

DROP OFF – allow the clients to drop-off the car at any location owned by the company

GAS – gasoline charges when cars are returned with less than a full tank

INSURANCE – clients are liable for a specified initial amount of damage to the car. Car rental
firms offer insurance to cover the liability

TAXI, LIMOUSINE AND TRANSPORT NETWORK VEHICLE SERVICES

Taxi, Limousine and TNVS play an important role in public transportation. They are called:
ON-DEMAND PUBLIC TRANSPORTATION. They don’t operate on a regular schedule,
rather, passengers arrange them individually for service.

TOPIC 4: LODGING and ACCOMMODATION SECTOR

ACCOMMODATION defined as:
[n.] the act of accommodating or the state of being accommodated
[n.] something that meets a need; a convenience;
[n.] room and board; lodgings

People who travel and stay away from home for more than a day need lodging mainly for
sleeping:
Other purposes include:

 For safety
 Shelter for cold and rain
 Having a place to store luggage
 Being able to take a shower

Brief History of Accommodation

The history of lodging can be traced back to the civilizations of Summeria and Egypt One
of the reasons: Early traders need a temporary place to stay while they while away from home.
Stopping points were established where different trading routes intersected. These stopping
points became trading centers in itself. Because of the journey segments, lodging facilities
became a need. They were called:

Relay houses in China

Khans in Persia
Tabernas in Rome

At some point, Innkeepers began to incorporate food and beverage service. This led to a
change in the way people traveled. The development of the Roman network of roads that
crisscrossed Europe, Asia and Africa also contributed to the robust development of lodging and
accommodation. As the evolution of lodging continued, the wealthy and landed aristocracy in the
world began to view the many spare rooms in their castles and estates as sources of revenue. This
is to assist them in maintaining these expensive holdings. The so-called precursor of the modern
hotel.

The City Hotel

Built-in New York in 1794, it is a significant milestone in the evolution of lodging

because its sole purpose was to house guests. The City Hotel’s 73 rooms made it quite large for
its time The Tremont House in Boston was built in 1828. It is considered by many as the first 5 -
star hotel in the world. Its amenities offered such as in – room water pitchers and free soap is
considered to be revolutionary.
In 1908, Ellsworth Statler opened what many believed to be the first “modern hotel” – the
Buffalo Statler Hotel in 1908 because of its modern innovation. Those innovations included:

 Fire doors
 Light switches
 Private bathrooms
 Key holes for easy access
 Circulating hot and cold water
 Full – length mirror
 Morning newspaper

Mobley (1925) in Cisco Texas – the first hotel purchased by Conrad Hilton – the patriarch of
the Hilton Chain of Hotels, one of Ellsworth Stalter’s rival J. Willard Marriott who started in the
restaurant business first, opened his first hotel called the Twin Bridges in 1957.

The first – ever Hyatt Hotel

Hyatt House was bought by Jay Pritzker in 1957

TYPES OF LODGING AND ACCOMMODATION

APARTMENT HOTEL or APARTELLE

 A type of accommodation described as a “serviced” apartment complex that uses hotel style
booking system. It is similar to renting an apartment but with no fix contracts and occupants can
check out whenever they wish.

HOSTEL
Provides an accommodation where a guest can rent a bed, sometimes bunk bed in a
dormitory and share a bathroom, kitchen and, lounge. Frequented by students and those who are
in a very tight budget. These dormitory-like accommodations or converted hotels usually offer
low- cost lodging in major cities. Some hostels require guests to bring their own linens or
perform small chores in exchange for cheap lodging.

HOTEL
Is an establishment that provides paid lodging usually on a short term basis. Provides a
number of additional guest services such as a restaurant, a swimming pool or a childcare. A
structure that provides sleeping accommodation to travelers and that usually provides dining
facilities and housekeeping services.

3 OF THE MOST IMPORTANT TYPES OF HOTEL

 Resort Hotel
 Business or Corporate Hotel
 Suite Hotel

a. RESORT HOTEL
Cater primarily to leisure travelers. They’re generally found in four environments

 Beaches;
 Near ski area
 In the desert
 Near theme parks and attractions

TYPES OF RESORT HOTELS

1. MEGA RESORTS. A large resort hotel with very many facilities and activities
covering acres of land

2. ALL-INCLUSIVE RESORT. A resort that includes most or all of the costs of staying
there:

 lodging;
 some or all meals;
 activities etc.

They usually have facilities for recreational activities:

 Swimming pool
 Tennis courts
 Golf course
 Dining facilities

3. SPA RESORTS. Provides extensive facilities for massages, facials, fitness activities
and healthy dining.

4. SKI RESORTS. Provides a site and facilities to serve the needs of winter sports
enthusiasts.
 5. CASINO RESORTS features extensive gaming opportunities in a destination where
gambling is legal e.g. Las Vegas

6. THEMED RESORTS. Is one that has strong identity often tied to some other place or
time

7. CONVERTED HOTELS or PARADORES old castles, monasteries, nunneries or even

commercial buildings reconfigured to accommodate tourists.

b. BUSINESS or CORPORATE HOTEL

 target the needs of business travelers;

 features a business center;
 guest can send faxes;
 photocopying machines;
 arrange package deliveries
 guest rooms with spacious desks, multiple telephone, printer and computer
terminals;
 with at least dining facility on-site;
 caters to fitness and recreational needs;
 located to business parks ( clusters of buildings housing various companies) or near
to airports.

c. CONVENTION or MEETING HOTEL

-Such hotels have numerous meeting rooms and large ballrooms that can host groups at
any size.
-Usually located near city centers

d. ALL-SUITE HOTEL all accommodations are suites instead of conventional rooms.

SUITES-are accommodations with at least two rooms e.g. bed room and living room with
a wall between them they may also feature kitchen-like elements.

JUNIOR SUITES

 large oversized rooms with separate sleeping and living areas although only a
curtain, railing, or other barrier that separate the two spaces
 in some cases, there’s no barrier at all – just a very big room
 all suite hotels maybe either leisure or business or a mix of the two

CORNER SUITE

 a suite that is located in the corner of a hotel building itself.

 this suite often takes up the same area that two standard rooms would.

BI – LEVEL SUITE

 a suite that takes up more square footage than standard rooms.

 instead of taking the horizontal square footage of the corner suite, they take up the
vertical area of two rooms.

HOSPITALITY SUITE

 intended to be more than a sleeping room. Hospitality Suites are intended to

entertain groups of people. they may include a kitchen and or bar area.
  the room themselves may take up the square footage of three or more standard
rooms.
 often, a standard room opens to the hospitality suite to serve as the sleeping portion
of the suite.

PRESIDENTIAL SUITE

 Sometimes called the “Chairman’s Suite” or the “Royal Suite”.

 These suites are considered to be the best and the largest room in the hotel and has
the best amenities.

MOTELS

 also known as motor hotel or motorist hotel

 referred initially to a single rooms whose doors face a parking lot or common area
 a series of small cabins with common parking
 the creation was driven by increased driving distances on the United States highway
system
 one would find “T” or “L” or “U” shape structure that included rooms, an attached
manager’s office, a reception which usually takes up a space of the guest room and
catching neon signs which employs pop culture themes

PENSION

 similar to guest houses / hostels or boarding houses

 this term is used in Spain, Italy and other countries as a synonym to cheap hostels
where one can usually get a room with shared bathroom.

LIMITED - SERVICE LODGING

 a hybrid of a hotel and a motel, these modestly sized and economically priced
properties generally have rooms that open onto an interior hallway rather than to the
outside like in a motel
 rooms are simple with continental breakfast only.
 they seldom have pools or exercise facilities

EXTENDED – STAY LODGING

Some of these properties offer daily housekeeping service, whereas others provide it only once
or twice a week only. They normally attract:

 Business people on lengthy business trips;

 Those relocating to a new city and families;
 They feature a more home or apartment – like ambiance rather than a do all suite hotels.

CONDOMINIUMS

 These are apartment – like facilities resemble to extended stay properties;

 The big difference is that instead of a company owning the lodging, the individuals own
each unit and also pay fees for the upkeep, security, landscaping, and maintenance;
 But when the condo owners aren’t in the residence, they rent out their units to
travelers;
 Some provide housekeeping service but others don’t.

TIMESHARES

 Here’s another sort of an apartment – type of lodging that is similar to condos

  Owners don’t purchase individual units, they own a certain amount of yearly time at the
property or even at the whole network of such properties
 Timeshare industry often goes by the name vacation ownership

Club – is a variation of a time share

a company agrees to use the club or chain of clubs on a regular basis

 The commitment usually requires payment of a membership fee or deposit for the
agreed-upon room nights.
 Unlike timeshares, club provide full – service amenities
 They are value – priced.

BED AND BREAKFASTS [B&B’S]

These home – like properties (often they are homes that has been converted) charge guests
who stay in a bedroom (sometimes with shared bath facilities) and offer full breakfast in a
communal dining room area or in the guest room.

LODGES

 These properties are usually in rural, nature dominated settings.

 They can be anything from Spartan to luxurious.

CAMPGROUNDS

 Once these facilities were where hardy tourists pitched tents.

 Today they usually refer to facilities where those who travel in recreational vehicles or
RVs stay

DUDE RANCHES

 A unique form of lodging, these facilities convey a theme of the American west.
 Usually located in resort areas, they feature horseback riding, cattle roundups, outdoor
barbecues, and other cowboy type of activities.

LOVE HOTELS

 a type of short-stay hotel found in East Asian countries and regions such as Japan, South
Korea, Taiwan and Hong Kong, operated primarily for the purpose of allowing couples
privacy to have sexual intercourse.
 The same concept exists in Central America, particularly in Guatemala, where they are
called autohotels.
 Entrances are discreet and interaction with staff is minimized
 With rooms often selected from a panel of buttons and the bill settled by pneumatic tube,
automatic cash machines, or a pair of hands behind a pane of frosted glass.
 While cheaper hotels are utilitarian, higher-end hotels may feature fanciful rooms
decorated with anime characters, equipped with rotating beds, ceiling mirrors, karaoke
machines, strange lighting or styled similarly to dungeons, sometimes including S&M
gear.

CAPSULE HOTEL
Also known as a pod hotel, is a type of hotel developed in Japan in 1979 that features a large
number of small bed-sized rooms known as capsules.
RYOKAN Is a type of traditional Japanese inn since the 8th century AD that typically
features tatami-matted rooms, communal baths, and other public areas where visitors may
wear yukata and talk with the owner.
 What Room Cost?
 The quality of property
 The facilities it offers
 The service level it provides
 The prime market it serves
 Where it’s located
 The season when the accommodations are needed
 If it has a casino
 When the accommodations are booked
 Whether the hotel or chain is offering a special promotion
 If it’s prepaid, non-refundable rate
 If it’s a landmark
 Whether anything spectacular or unusual going on
 If the guest is part of a conference
 How inclusive the property is
 The number of people in a room
 If there’s a resort fee
 If the guest is using frequent stay or flyer points
 How lodging is purchased

WHO OWNS LODGING FACILITIES?

 The property may be wholly-owned by a parent chain or corporation

 A property may only be a franchise of a chain
 A property may have only a management contract with the chain

HOW LODGING IS SOLD?

 About 60% of all lodging is sold by hotels and their chains directly to the public or
businesses.
 15% is purchased by tour operators and cruise lines then fold the rooms to their packages,
or to consolidators, meeting planners and other related services.
 The remaining 25% is sold by conventional and online travel agencies and their websites.

ACCOMMODATION MANAGEMENT
Two main divisions:

 Front-of-the-House
 Back-of-the-House

FRONT-OF-THE-HOUSE
The ones that have actual contact with guests:

 Front desk
 Waitstaff
 Bartenders
 Entertainers

BACK-OF-THE-HOUSE
The ones that guests may sometimes see but usually don't need to see:

 Housekeepers
 Engineers
  Maintenance
 Sales
 Marketing
 Reservations
 Accounting

THE ROOMS DIVISION

Generally includes:

 front office
 reservations
 communication services
 uniform/guest services
 housekeeping

FRONT OFFICE
the gateway of the property and provides the first and the last contact for guests.

RESERVATIONS
Often operates back-of-the-house but also has an important front-of-the-house function since
reservation work involves public relations and sales duties

Guest and Uniformed Service

Include the services provided by the:

 Concierge
 Bellstaff
 Lobby Porters
 Valet
 Doorstaff

People in these positions have direct contact with guests

Besides performing their specific tasks, they act as salespeople and answer questions.

Sales and Marketing

Carries out four functions:

 Sales
 Advertising
 Public Relations
 Market Analysis

Food and Beverage

Manage food production and service in one or more food outlets:

 Beverage outlets
 Cocktail lounges and pubs
 Room service
 Staff cafeteria
 In-house catering or satellite catering

Food and Beverage

A Food Service Department typically has the following functions:

 Planning menus for specific services (restaurants, banquets)

 Determining ingredients
 Purchasing
  Receiving
 Storing food-related items
 Preparing and serving food
 Clean-up

Food and Beverage Department has both front-of-the-house and back-of-the-house component

Other Departments/Divisions

 Human Resources
 Accounting
 Security
 Maintenance and Engineering
 Materials Management (Purchasing)
 Facility Management

Lesson 5: FOOD and BEVERAGE SECTOR

Characteristics of the Restaurant and Foodservice Industry:

 Annual sales of over $550 billion dollars.

 More than 945,000 restaurant and foodservice operators.
 Employs more than 13 million people.
 Over 57 percent of restaurant and foodservice managers are women.
 Approximately 25 percent of eating-drinking establishments are owned by women, 15
percent by Asians, 8 percent by Hispanics, and 4 percent by African Americans.
 The industry expects to continue to grow over the next decade, with 14.8 million jobs by
2019.

The restaurant and foodservice industry can be divided into two major parts or segments:

 Commercial
 Non – commercial

The commercial segment makes up almost 80 percent of the restaurant and foodservice
industry. The non - commercial segment represents about 20 percent of the foodservice industry.
The non - commercial segment prepares and serves food in support of some other
establishment’s main function or purpose.

Categories in this segment include:

 schools and universities

 military
 health care
 business and industry
 clubs

The History of Foodservice

The Real Beginning: Ancient Greece and Rome:

 Ancient Greeks rarely dined out, although they enjoyed the social aspect of dining and
often got together for banquets.
 Romans’ meals were primarily served in the home.
  Romans’ desires for exotic foods and spices increased trade, stretching the Roman
Empire farther east and north.

The Middle Ages:

 Landowners, who lived in relative

 comfort, held large banquets
 almost every night.

Guilds, or associations of people with similar interests or professions were organized.

Cooking guilds established many of the professional standards and traditions that exist today.
During the Renaissance, world travel and international trade greatly improved the
European way of life. The food preparation system we now call haute cuisine, an elaborate and
refined system of food preparation, had its roots during this period.

In 1765, a man named Boulanger began serving hot soups called restaurers (meaning
restoratives) for their health-restoring properties. He called his café a restorante, the origin of our
modern word restaurant.

The Industrial Revolution:

 During the Industrial Revolution, people moved to the city to find work in the growing
number of factories to earn a better living.
 People needed to live close enough to the factory to walk to work, go home for lunch,
and leave again for dinner.
 As cities became business hubs, dining and lodging establishments opened up to serve the
needs of workers
 and employers.
 With the invention of the railroad in 1825, inns, taverns, and foodservice facilities located
near railway stations began to grow.

The Twentieth Century:

 By the turn of the century, more people were working and therefore eating out more,
especially for lunch.
 During World War II in the 1940s, the lodging industry prospered as people traveled for
war-related reasons.
 After World War II, in the 1940s and 1950s, the quick-service restaurant segment of the
industry grew quickly.
 In the 1960s, commercial air travel became popular, and builders focused on land
near airports as the next new place to situate hotels, motels, and foodservice facilities.

The Twentieth Century (continued):

The rapid growth of national chains from the 1970s to today has changed the face of the
restaurant and foodservice industry. “Eating out” became almost as commonplace as eating at
home—not just for special occasions, but simply for convenience. In the last few decades,
lifestyles have moved steadily toward busier households that no longer have a dedicated daily
food
preparer. Large restaurant chains lead the way for full-service, casual dining chain restaurants,
matching the growth in the quick-services sector.

Types of Service

1. Table Service
  Most popular type of service;
 Usually a greeter seats you;
 A server takes your order from a menu;
 Then the food and beverages are delivered on your table;
 Before leaving, you pay your server or a cashier;

2. Banquet Table Service

This type of service comes in three versions:

 Everyone is served with the same meal at the same time;

 Features several choices but again all meals are served at the same time;
 Seating – guest pre select from a menu and are served at the same time;

4. Buffet Service

 More self-serve than a cafeteria;

 One price, oftentimes paid in advance covers everything;

5. Cafeteria Service

 Guest picks up the tray, select their food;

 Place their choices on the tray;
 Pay their selections at a cashier;
 Take the food themselves on the table;

6. Room Service

 Guests order their meals from a special in – room menu;

 The meal is brought to their guest room usually within 30 – 45 minutes;
 A service charge, perhaps gratuity are, in most cases automatically added to the bill
which appears on the guest folio and is paid when they check out;

7. Fast Food Service

 Guest walks up to the counter or drive through and order;

 Most fast food facilities have open seating area;
 Family or travellers often use fast food outlets to save time and money;

8. Delivery Service

 Food is prepared and then delivered usually to the customer’s home;