CHAPTER ONE

INTRODUCTION TO
HOSPITALITY INDUSTRY

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 Chapter Outline

⸙ Definition of hospitality industry

⸙ Historical back ground of hospitality industry
⸙ Characteristics of hospitality industry
⸙ Defining the term hotel industry
⸙ Importance of hotel industry
⸙ The relationship between hotel and tourism

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 DEFINITION OF HOSPITALITY
INDUSTRY

⸙ What is the meaning of HOSPITALITY?

⸙ There is no single and simple definition.

⸙ Many people have tried to describe the

hospitality industry in different ways.

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 DEFINITION OF HOSPITALITY
INDUSTRY

⸙Broadly speaking, Hospitality is the act of

kindness in welcoming and looking after the
basic needs of customers or strangers, mainly
in relation to food, drink and accommodation.

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 DEFINITION OF HOSPITALITY
INDUSTRY

⸙ The followings are some definitions of

hospitality industry:

⸙ ‘A group of interrelated organizations

providing personal services to customer
away from home.’ Nykiel Ronald A. (1983)

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 DEFINITION OF HOSPITALITY
INDUSTRY

⸙ The term hospitality is derived from the

French word “hospice” which means
‘taking care of those traveling’.

⸙ ‘Reception and entertainment of guests,

visitors or strangers with liberality (kindness)
and good will’. (Oxford English Dictionary)

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 DEFINITION OF HOSPITALITY
INDUSTRY

⸙ Therefore, the hospitality industry can be

broadly defined as the collection of
businesses providing accommodation,
food and beverage and other recreational
services to people who are away from
home.

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 THE SECTORS OF HOSPITALITY
INDUSTRY

Accommodation,
Food and beverage,
Meeting and events,
Gaming,
Entertainment and recreation,
Visitor information and etc.
•

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 HISTORICAL BACKGROUND OF
THE HOSPITALITY INDUSTRY

⸙ The past, present, and perhaps the future of

the hospitality industry are closely linked.
⸙ Today's industry is the result of centuries of
social and cultural evolution.
⸙ A world without hospitality is vain(hopless)
in modern day life.

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 EARLY HISTORY

⸙ The concept of hospitality is extremely old;

it is mentioned in writings dating back to
ancient Rome, Persia and Biblical Times.
⸙ In ancient Persia, travelling was done in
large caravans, which carried elaborate
tents for use along the caravan routes,
accommodations known as Khanas were
constructed.
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 EARLY HISTORY

⸙ In the later years of the Roman Empire,

taverns and inns provided shelter for
travelling merchants, actors, and scholars.

⸙ The earliest hotels were called taverns or inns.

⸙ The Hebrew word for an inn is malon and
means a resting place for the night.
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 EARLY HISTORY

⸙ The Greek word for inn is kataluma and

means an eating room or guest meeting room.

⸙ When large camel caravans would cross the

deserts in Asia, there were hotels called
caravanserais at which travelers rested and
slept.

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 MIDDLE AGES
⸙ Religion was the driving force for hospitality
industry.
⸙ It was considered as the duty of the
Christians to offer hospitality to travellers
and pilgrims.
⸙ Monasteries functioned as inns, providing
accommodations and food for the weary
traveller.
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 MIDDLE AGES

⸙ Charlemagne (Emperor of Romans), during

his reign enacted laws setting out the duty of a
Christian to provide a free resting place for a
traveller.
⸙ In 1282 in Florence, Italy, the great
innkeepers of the city incorporated an
association for the purpose of turning
hospitality into a business.
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 MIDDLE AGES

⸙ Inns became licensed and were permitted to

import and resell wine.
⸙ The inns themselves belonged not to the
innkeepers but to the city
⸙ In the year 1290, 86 inns in Florence were
members of the guild(associations).
⸙ Shortly thereafter, the business of hospitality
spread to Rome and other Italian cities.
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 INNS IN THE 15TH CENTURY
⸙ The fifteenth century brought about fresh
importance for the inn. A new merchant class
began to emerge due to an increase in trade,
therefore more and better inns was created.
⸙ Most travel was still primarily by horseback,
but toward the end of the 15th century, more
comfortable wheeled carriages came into use.
⸙ Many monasteries closed their guesthouses.

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INNS IN THE 16th CENTURY

⸙ The inns of the sixteenth century changed

little from earlier times, although they were
large and somewhat spacious.
⸙ Accommodation has improved greatly, for
now a guest could often have a private
bedroom furnished with heavily carved oak
furniture.

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INNS IN THE 16th CENTURY

⸙ The ground floor consisted of a large hall

called the parlour, which was used as a
reception room as well as a place to serve
meals.
⸙ The upper floor was used for the guest
rooms.

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INNS IN THE 17th CENTURY
⸙ During this period, considerable
improvement took place, particularly in
England, in the quality of accommodations.
⸙ The common mode of transportation used
then was stagecoach(carriage)
⸙ This resulted in the construction of inns or
taverns at suitable locations along the
stagecoach routes.
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INNS IN THE 17th CENTURY

⸙ The inns or taverns also became popular

meeting and wedding places for local
nobility, politicians, priests and other.

⸙ In the 18th century, coffee houses became

extremely popular in Europe and were
incorporated into many of the inns.

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 THE EMERGENCE OF HOTEL

⸙ Till the industrial revolution, no significant

improvement was made on the inns and
taverns, and they were not very suitable for
aristocrats and wealthy travellers.
⸙ During industrial revolution, 1750-1820,
English inns were the finest in the world.
⸙ London has a larger number of the old taverns
than any other large city in the world.
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THE EMERGENCE OF HOTEL

⸙ Industrial Revolution in England brought

ideas and progress in the business of inn
keeping.
⸙ Growth of hotel took place with concept of
family hotels i.e. run by the families and
were called mom & pop in England.

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THE EMERGENCE OF HOTEL

⸙ The word “hotel” was used in England in

about 1760.
⸙ However, the real growth of the modern
hotel industry took place in the USA with
the opening of City hotel in New York in
1794.

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 THE EMERGENCE OF HOTEL

⸙ Also, the modern hotel named Tremont

opened in Boston 1809, which provided private
guest room, door with lock, free soap and
bellboy service.
⸙ It is called Adam and Eve of modern hotel
industry. From there a surge of hotels flooded
American and the rest of the World with
prominent names such as Radisson, Marriot
and Hilton. 24
 HOTEL INDUSTRY IN ETHIOPIA

⸙ The first hotel also founded by the two

couples and named Taitu hotel in 1898.
⸙ From 1970-1975 there are many hotels
from small to medium range has been
developed throughout the country,
especially to the northern parts of the
country

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 HOTEL INDUSTRY IN ETHIOPIA

⸙ The first global brand (the flagship brand)

of American multinational hospitality
company in Ethiopia is Hilton Addis
Ababa, opened in 1969 by Emperor Haile
Selassie.
⸙ In February, 1998, Sheraton Addis Ababa,
a member of the Starwood Hotels & Resorts
Worldwide Inc., was opened.
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Taitu Hotel in Addis Ababa

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Sheraton Hotel Addis Ababa

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Hilton Hotel, Addis Ababa

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 CHARACTERISTICS OF
HOSPITALITY INDUSTRY

⸙Intangibility
⸙Inseparability
⸙Variability
⸙Perishability

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 GOODS VS. SERVICES
No Comparison Goods Service
1 Meaning Goods are the material items that can be Services are amenities, facilities, benefits
seen, touched or felt that are exist physically. or help provided by other people, not exist
physically

2 Nature Tangible Intangible

3 Transfer of Yes No
ownership
4 Evaluation Very simple and easy Complicated

5 Return Goods can be returned. Services cannot be returned back once

they are provided.
6 Separable Yes, goods can be separated from the seller. No, services cannot be separated from the
service provider.

7 Variability Identical Diversified

8 Storage/ Goods can be stored for use in future or Services cannot be stored/are perishable
perishability multiple uses.
9 Production and There is a time lag between production and Production and Consumption of services
Consumption consumption of goods. occurs simultaneously.

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 DIFFERENT SEGMENTS OF THE
HOSPITALITY INDUSTRY

⸙ A profit- making: to earn a profit.

⸙ E.g. commercial restaurants and hotels Bar,
Canteen, guest houses etc.
⸙ A non-profit- making: not run specifically
to make a profit, usually operated with the
intention of welfare of its members.
⸙ E.g. Government Hospital, University
cafeteria etc.
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 Definitions of hotel industry

• an establishment providing accommodation,

meals, and other services for travellers and
tourists.
• an establishment that provides lodging and
usually meals, entertainment, and various
personal services for the public
• “Home away from the home”
• “City with in the city”
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HOTEL AS A SERVICE PROVIDER
IN THE MODERN DAY

⸙ Gone are the days when people looked upon a

hotel for a bed and food.
⸙ Now it provides almost everything that a guest
needs.
⸙ These services complement each other and
also help in improving the occupancy rate of
the hotels.

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HOTEL AS A SERVICE PROVIDER
IN THE MODERN DAY

⸙ Banquet service
⸙ Convention Center
⸙ Restaurant service
⸙ Secretarial Service
⸙ Money Changes
⸙ Valet Service
⸙ Health Club and Sports and Games etc.
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 Importance of Hotel Industry

• Hospitality mostly generates revenue for

local economies directly when tourists visit
and spend money in hotels, restaurants, and
entertainment venues.
• It helps to boost the economy indirectly
because tourists purchase retail goods,
pharmacy items, and locally made
souvenirs and crafts
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Cont’d…

• Hotels are most important globally as they

provide facilities such as recreation and
entertainment, meeting and conferences,
and business gathering.
• Hospitality is the way for travelers for their
accommodations, venues, meals, and
drinks.

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Cont’d…
• It generates Income
• It generates employment
• It is a source of foreign exchange earnings
• Developing Infrastructure
• It promotes peace & stability
• Increases government revenue
• It improves the quality of life of locals
• It provides recreational facilities
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Cont’d…

• Hotels are definitely one of the fastest-

growing sectors in the tourism sector and it
is the main source as accommodation is the
key part and important aspect in the
development of any country.

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 THE RELATIONSHIP BETWEEN
HOTEL AND TOURISM

⸙ It's no secret that the tourism industry arranges the

likes of travel for tourists, but necessary services
such as accommodation and food are provided by
hospitality industry.
⸙ Simply put, the two go hand in hand, and depend
on each other for survival.
⸙ So hotel and tourism are sides of a coin which are
inseparable.

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