Chapter 1

INTRODUCTION TO
THE HOSPITALITY INDUSTRY

Copyright © 2009 OXFORD Higher Education

Learning Objectives

After reading this chapter, you will be able to understand the

following:
• Hospitality industry—its origin and growth.
• Travel and tourism—their evolution, importance, and
related industries.
• Evolution and growth of the hotel industry in the world
and in India.
• Hotel—definition and core areas.

Copyright © 2009 OXFORD Higher Education

THE HOSPITALITY INDUSTRY

The 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. The industry is very diverse and global, and is
greatly impacted by fluctuations within the economy as
also by various happenings across the world.

Copyright © 2009 OXFORD Higher Education

Origin and growth
The origin and development of the hospitality industry is
a direct outcome of travel and tourism.
The primitive lodging houses or inns originated
essentially to cater to these needs of the travelers.
Throughout the world they were known by different
names :
 Dharamshala and Sarai in India
 Ryokans in Japan
 Paradors in Spain
 Pousadas in Portugal
 Coffee houses in America
 Taverns and Inns in Europe
 Cabarets and Hostelries in France
 Mansionis and Hospitia in Switzerland
 Phatnal in Greece
 Relay Houses in China

Copyright © 2009 OXFORD Higher Education

TOURISM INDUSTRY

Tourism may be defined as the movement of people from

their normal place of residence to another place (with the
intention to return) for a minimum period of twenty-four
hours to a maximum of six months for the sole purpose of
leisure and pleasure.
Tourism can be categorized as:
International tourism
Domestic tourism

Copyright © 2009 OXFORD Higher Education

INTERNATIONAL TOURISM
When people visit a foreign country, it is referred to as
international tourism
International tourist may be of following type:
 Inbound(When tourist from other country come to destination)
 Outbound( tourist originated from country of residence and move to other
country)
DOMESTIC TOURISM
The tourism activity of people within their own country is
known as domestic tourism

Copyright © 2009 OXFORD Higher Education

INDUSTRIES RELATED TO
TOURISM

Copyright © 2009 OXFORD Higher Education

IMPORTANCE OF TOURISM

Employment generation
Infrastructure development
Foreign exchange

Copyright © 2009 OXFORD Higher Education

Evolution and Growth of Hotel Industry

The origin and growth of hotel industry can be studied under

following periods:
Ancient Era : Primitive type of lodging houses offering
rooms and modest services eg. Inns, Dharamshalas, Sarais
etc.)
Grand Tour : Second half of 18th century, prior to French
revolution is referred as ‘Golden era of travel’. This lead to
extensive travel creating the need of lodging houses for
aristocrats
Modern Era : Industrial revolution, development of fast and
safe mode of transport lead to the growth of modern lodging
houses to cater the needs of mass movement of tourists

Copyright © 2009 OXFORD Higher Education

Evolution and Growth of Hotel Industry in India
 The origin and growth of hotel industry in India may be studied under
following heads:
 Ancient and Medieval Era: While it is not clear when hospitality emerged as a
commercial activity in ancient India, there is evidence of accommodation
facilities for travellers and guests, though not as organized as we see them today.
The lodging houses during those times were known as dharamshalas (dharama in
Sanskrit means religion and shala school).
 Colonial Era: The organized existence of the hotel industry in India started taking
shape during the colonial period, with the advent of Europeans in the seventeenth
century. The early hotels were mostly operated by people of foreign origin to cater
to the needs of the European colonizers and later officials of the Raj.
 Modern Era : Over the last few decades, various well-known international hotel
chains have come to India. These include Hyatt Hotels and Resorts,
InterContinental Hotels and Resorts, Marriott International, Hilton Hotels, Best
Western International, Shangri-La Hotels and Resorts, Four Seasons Hotels and
Resorts, Carlson Hotels worldwide etc.

Copyright © 2009 OXFORD Higher Education

HOTEL AND ITS CORE AREA
A hotel or an inn is defined by the British Law as a ‘place where a
bonafide traveler can receive food and shelter, provided he is in a
position to pay for it and is in a fit condition to be received’.
The core areas of hotel
 Room Division
 Front office
 House keeping
 Food and Beverage Department
 F& B Service
 Kitchen
 Human Resource Department
 Sales and Marketing Department
 Purchase Department
 Financial Control Department
 Security Department

Copyright © 2009 OXFORD Higher Education