Chapter 1 The World of Hospitality Permission granted to reproduce for educational use only.©...

Chapter1The World of Hospitality

Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc.

Objectives

• Explain the importance of the hospitality industry to the economy.

• Describe the diversity of the hospitality industry.

• Differentiate among the five segments and give an example of one business in each.

• Explain why all segments of the hospitality industry should aim to satisfy the customer.

continued


Objectives

• Describe the ways in which chains differ from franchises.

• Explain the purpose of professional organizations and career and technical student organizations.


The Hospitality Industry

• Hospitality includes travel and tourism, the world’s largest industry

• In the United States, the hospitality industry is the second-largest employer

• Money spent by travelers flows through the economy, affecting many other businesses


Industry Diversity

• Hospitality businesses provide diverse products and services, including– lodging– food– entertainment– transportation

• The hospitality industry serves diverse customers

• Hospitality employees are also diverse


Industry Complexity

• The hospitality industry has five segments:– food– lodging– travel– tourism– recreation

©Sean Pavone Photo/Shutterstock.com


The Foodservice Industry

• The foodservice industry– consists of businesses that prepare food and

beverages for customers– includes businesses of many sizes, types, and

locations– is the largest and most varied segment of the

hospitality industry


The Lodging Industry

• The lodging industry consists of businesses that provide overnight accommodations

• Lodging includes a wide range of prices and levels of service


The Travel Industry

• The travel industry consists of businesses that physically move travelers from one place to another, such as– car rentals– taxi and ferry services– train and bus services– airlines


The Tourism Industry

• The tourism industry consists of businesses that organize and promote travel, such as– travel agencies– tour operators– cruise companies– meeting and convention planners– convention and visitors bureaus– travel and tourism offices– travel planners, who create travel packages


The Recreation Industry

• Recreation is any activity done for rest, relaxation, and enjoyment

• The recreation industry includes such operations as– entertainment– spectator and participatory sports– attractions


A Customer Focus

• All segments of the industry must meet customer needs

• All hospitality workers contribute to a customer’s overall experience


Business Categories

• A single-unit business– has only one establishment (location)– is also called an independent business– is not connected to any other business

• A multi-unit business– has two or more establishments– may be part of a chain or franchise


Chains

• A chain is a business that has more than one establishment under the same name and the same ownership

• A chain’s brand, which distinguishes it from its competitors, may include– name– logo– tagline


Franchises

• A franchise is the right to set up a business using the brand and products of another business

• The franchisor owns the chain and brand, while the franchisee buys the right to use the brand

• All franchises are part of a chain, but not all chains have franchises


Professional Associations

• A professional association consists of a group of people organized to improve themselves, their profession, and their industry

• Includes such major associations as– the National Restaurant Association (NRA)– the American Hotel & Lodging Association

(AH&LA)– the U.S. Travel Association


Activities of Professional Associations

• Professional development• Standards and ethics• Networking• Public relations• Government relations


Value of Involvement

• Involvement in a professional organization can provide benefits such as– scholarships for students planning to enter the

profession– help with job searches, professional

development, and networking– opportunities to develop leadership skills and

other abilities


Student Organizations

• A career and technical student organization (CTSO) is for students interested in a career area, such as hospitality or business

• A CTSO gives students the opportunity to develop– interpersonal skills– leadership skills– career skills– technical skills


Benefits of Belonging to a CTSO

• Opportunities to meet with professionals in the industry

• Availability of scholarships• A variety of civic, service, social, and fund-

raising activities • Competitive events at the local, state, and

national levels


• What is the world’s largest industry?– travel and tourism

• In what three ways is the hospitality industry diverse?– It provides diverse products and services,

serves diverse customers, and employs diverse workers.

Chapter 1 Review

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• Name the five segments of the hospitality industry.– food, lodging, travel, tourism, recreation

• Which segment is the largest and most varied?– the food industry

Chapter 1 Review

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• What distinguishes a chain from its competitors?– its brand

• Name four types of skills that can be developed by belonging to a CTSO.– interpersonal, leadership, career, and technical

Chapter 1 Review

Chapter 1 The World of Hospitality Permission granted to reproduce for educational use only.©...

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