MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Lesson Proper for Week 1

IV. DEVELOPMENT OF THE LESSON

PERSPECTIVE OF TOURISM

1. Tourist - The people who go on tour are looking for emotional and physical experiences through
various activities. The nature of the experience a tourist wants can be found out by the category of
destination of the tour program.

2. Tourism Business Catering Goods and Services - These are the set of business people who
establish themselves for making a profit by providing the various facilities to the tourists and keep the
system running according to the demand in the industry.

3. Government of Tourism Host Community - Usually, the government looks forward tourism industry
as a way of obtaining financial stability for economic development of the region. The amount of income
generated from the region where tourism is promoted and numerous possibilities of reducing
unemployment are the main advantage government will be getting from the tourism initiatives.

4. Tourism Host Community - The people in and around the tourism destination sees employment
opportunities and the overall cultural enhancement in tourism. The interaction between the local
residents and the people involved in the tourism business with the visitors are contributing to the overall
development of the area.

PHILIPPINE PRODUCT PORTFOLIO

Nature Based Tourism is any type of tourism that relies on experiences directly related to natural
attractions and includes ecotourism, adventure tourism, extractive tourism, wildlife tourism, and nature
retreats.

Cultural Heritage Tourism is a branch of tourism oriented towards cultural heritage of the location where
tourism is occurring. The National Trust for Historic Preservation defines cultural heritage tourism as
“travel to experience the places, artifacts and activities that authentically represents the stories of people
of the past and present, including cultural historic and natural resources.”

Sun and Beach Tourism occurs in coastal towns where beaches are located and most of the time the
weather conditions are of sunny weather and mild temperature (25 to 30 C). During the day, tourists
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

usually go to the beaches where the sun is taken and at night different activities are held in hotels or
recreation areas.

Cruise & Nautical Tourism is tourism that combines sailing and boating with vacation and holiday
activities. It can be travelling from port to port in a cruise ship or joining boat-centered events such as
regattas or landing a small boat for lunch or other day recreation at specially prepared day-boat landing.

Shopping, Leisure and Entertainment Tourism – Shopping Tourism steers tourist to their destinations.
The art of shopping while travelling is diverse. It includes duty free shopping in airports; purchasing
luxury goods; visiting shopping malls, department stores and outlets; discovering local brands; and
supporting local artisans’ business and locally sourced items. Leisure travel is travel in which the primary
motivation is to take a vacation from everyday life. Leisure travel is often characterized by staying in nice
hotels or resorts, relaxing on beaches or in a room, or going on guided tours and experiencing local
tourist attractions. Entertainment is a form of activities that take away people’s stress basically come from
work or school and give them properly amusement to relax. In tourism industry, entertainment is a very
important sector. Tourists would love to visit some specific places such as movie theaters, water park,
Carnival and so on.

MICE and Events Tourism – Meeting, Incentives, Conferences and Exhibitions (MICE) is a type of
tourism in which large groups, usually planned well in advance, are brought together. Other industry
educators are recommending the use of “events industry” to be an umbrella term for the vast scope of the
meeting and events and profession.

Health, Wellness and Retirement Tourism – Health and wellness tourism refers to trips that are taken
by tourists with the principal purpose being improve their health and/or wellbeing. Retirement Tourism or
Senior Tourism is a type of tourism typical of people of advanced age. This type of tourism offers specific
services on the market which corresponds to certain needs and interests of this age group.

Diving and Marine Sports Tourism – Scuba diving tourism is the industry based on servicing the
requirements of recreational divers at destinations other than where they live. It includes aspects of
training, equipment sales, rental and service, guided experiences and environmental tourism. Marine
Sports Tourism refers to marine and coastal-based sports presented as tourist attractions around the
waterfront. It can be defined as the attractions providing tourists with marine and coastal-based activities
as their principal focus.

Marine sports tourism is a growing industry that continues to develop.

Exercise 1 / Activity 1:

Based on the perspective and Philippines Product Portfolio, how will you promote to the tourists
the made in the Philippine products.

TYPES OF TOURISM IN THE PHILIPPINES

Beach and diving tourism

Beach tourism is currently the major tourist draw of the Philippines. Various beaches in the Philippines
have landed in multiple magazines, ranking them anywhere between 1st place and 8th place. Among the
most popular beach and diving choices in the country includes Boracay, El Nido, Coron, Cebu and
Siargao. Other common beach places are in Samal, Cagayan, La Union, Pangasinan, Zambales,
Batangas, Iloilo, Dumaguete, Camarines Sur and Zamboanga.

Hiking Tourism
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Hiking is a rising form of tourism in the Philippines, especially among locals and Western foreigners.
Among the most famous hiking areas in the country are Mount Apo, Mount Pinatubo, Mount Halcon,
Mount Banahaw, Mount Makiling, and Mount Pulag. Online magazine, Culture Trip, cited Mount Batulao
in Batangas, Masungi

Georeserve in Rizal, Tarak Ridge in Bataan, Mount Daraitan and Maynoba in Rizal, Kibungan Circuit in
Benguet, and Mount Pulag in Nueva Viscaya for having the most spectacular hiking trails in the country in
2017.

Research and Education Tourism

Due to the diverse number of flora and fauna of the country, researchers from around the world have
flocked various biodiversity sites in Philippine environmental corridors. Among the big draws for
environmental researchers include Mount Mantalingajan, Sibuyan Island, Dinagat Islands, Mount
Hamiguitan, Central Panay Mountain Range, Verde Island Passage, Tubbataha Reef, Mount Malindang,
Northern Sierra Madre Natural Park, and Turtle Islands, Tawi-tawi. Local and foreign archaeologists and
anthropologists have also flocked the country’s archaeological sites, such as Cagayan Valley, Butuan,
Tabon Cave, Callao Cave, Banton, Ifugao, Cebu, Lanao del Sur, and many others. Various universities in
the country such as University of the Philippines, Ateneo de Manila University, De La Salle University,
University of Santo Thomas, Silliman University, University of San Carlos, and University of Mindanao
have been influential in research tourism, especially for graduate students seeking better review centers.

Arts and Crafts Tourism

Arts and crafts tourism in the Philippines has recently expanded following several attempts to establish a
cultural renaissance. The number of art museums, galleries, exhibitions, festivals, and town fairs
throughout the country has doubled in the past 10 years. The country was conferred its first UNESCO
Creative City through Baguio in 2016. Other arts and crafts centers are in Manila, Quezon City, San
Fernando, Iloilo City, Angono, Santiago City, Cebu City, Vigan, Basco, Zamboanga City, Marawi, Tugaya,
Cotabato City, Sariaya, Tagbilaran, and Dumaguete.

Pilgrimage Tourism

The Philippines is the Catholic pilgrimage capital of Asia, possessing hundreds of olden churches, most of
which were established between 15th to 19th centuries through the earthquake baroque architecture.
Historic mosques, temples, and indigenous places of worships such as dambanas are also present
throughout the country. Among the most popular pilgrimage sites in the Philippines are Paoay Church,
Manila Cathedral, Maragondon Church, Cebu Metropolitan Cathedral, Baclayon Church, Panay Church,
Loboc Church, Daraga Church, Boljoon Church, Guiuan Church, Calasiao Church, Manaog Church,
Tumauini

Church, Naga Cathedral, San Sebastian Church of Bacolod, Betis Church, Quiapo Church, Taal Basilica,

Miagao Church, Caraga Church, Paete Church, Lucban Church, San Sebastian Church of Manila,
Jimenez

Church, Barasoain Church, Seng Guan Temple, Sheik Karimol Makhdum Mosque, Taluksangay Mosque,

Sultan Haji Hassanal Bolkiah Masjid, Masjid Dimaukom, Mount Banahaw, Kabayan Mummy Burial
Caves, Limestone tombs of Kamhantik, Bud Bongao, Mount Apo, Mount Bulusan, Mount Pulag, Callao
Cave, Mount Kalatungan, Mount Matumtum, Mount Makiling, Kanlaon, Mount Arayat, Mayon Volcano,
Mount Pinatubo, and Mount Kitanglad.
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Fiesta Tourism

Various festivals in the country are flocked annually by both locals and foreigners. The country has been
known as the traditional capital of the world’s festivities and the capital of fun due to the thousands of
festivals which happen in the country, most of which are annual spectacles. Among the most famous of
these events are the Sinulog Festival of Cebu, the Kidayawan Festival of Davao, the Ati-Atihan Festival of
Aklan, the Dinagyang Festival of Iloilo, the Panagbenga Festival of Baguio, the Moriones Festival of
Marinduque, the Pahiyas Festival of Quezon Province, the Obando Fertility Rites Festival of Bulacan, the
Pintados Festival of Leyte, the Sandugo Festival of Bohol, the Ibalong Festival of Bicol, the Masskara
Festival of Bacolod, and the Giant Lantern Festival of Pampanga. Each of the festivals, or locally known
as fiesta, have different traditions at play. The festivals may be Anitist, Hindu, Buddhist, Catholic, Muslim,
or a mixture of religious in origin. Some festivals, however, are not interlaced with any form of religion.

Wellness Tourism

Wellness tourism has recently doubled its contribution to Philippine tourism due to the rise of hilot (ancient
Filipino art of healing) practices in spas, bath houses, and hotels. Surges in patriotism for whole-body
firewood pot bathing and indigenous herbal usage have also helped the industry to prosper in the
villagelevel. Staycation, or staying in hotels for relaxation purposes, has also become a trend, along with
the increase of yoga, as rooted to the Indian roots of many indigenous Filipino cultures. Hilot havens
include Camiguin, Siguijor, and Antique, while staycation destinations include the hotels of Manila,
Bataan, Batanes, Tagaytay, Baguio, and Bukidnon.

Heritage Towns and Cities Tourism

The Philippines is home to numerous heritage towns and cities, many of which have been internationally
destroyed by the Japanese through fire tactics in World War II and the Americans through bombing during
the same war. Exercise 2 / Activity 2

If you will given a chance to have a Tour in one day but the tourist is foreigners, which of the
following types of tourism will you advertise to the tourists and why?

ECONOMIC IMPACT OF TOURISM

NEGATIVE ECONOMIC IMPACT OF TOURISM

LEAKAGE

•The direct income for an area is the amount of tourist expenditure that remains locally after taxes, profits,
and wages are paid outside the area and after imports are purchased; these subtracted amounts are
called leakage.

•In most all-inclusive package tours, about 80% of travelers’ expenditures go to the airlines, hotels and
other international companies, and not to local businesses or workers.

•In addition, significant amounts of income actually retained at destination level can leave again through
leakage.

•A study of tourism “leakage” in Thailand estimated that 70% of all money spent by tourists ended up
leaving Thailand.

•Estimates for other Third World countries range from 80% in the Caribbean to 40% in India.

•There are two main ways that leakage occurs:

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Import Leakage

•This is commonly occurs when tourists demand standards of equipment, food, and other products that
the host country cannot supply.

•Especially in LEDC’s food and drinks must often be imported, since local products are not up to the
hotel’s (i.e. tourist’s) standards or the country simply does not have a supplying industry.

•Much of the income from tourism expenditures leave the country again to pay for these imports.

•The average import-related leakage for most developing countries today is between 40% and 50% of
gross tourism earnings for small economies and between 10% and 20% for most advanced and
diversified economies.

Export Leakage

•TNC’s have a substantial share in the export leakage.

•Often, especially in poor developing destinations, they are the only ones that possess the necessary
capital to invest in the construction of tourism infrastructure and facilities.

•As a consequence of this, an export leakage arises when overseas investors who finance the resorts
and hotels take their profits back to their country of origin.

Enclave tourism

•Local businesses often see their chances to earn income from tourists severely reduced by the creation
of “all inclusive” vacation packages.

•When tourists remain for their entire stay at the same cruise ship or resort, which provides everything
they need and where they will make all their expenditures, not much opportunity is left for local people to
profit from tourism.

•All-inclusive hotels generate the largest amount of revenue but their impact on the economy is smaller
per dollar of revenue than other accommodation types.

•All-inclusive also import more and employed fewer people per dollar of revenue than other hotels.

•Smaller trickle-down effect on local economies.

•The cruise ship industry provides another example of economic enclave tourism.

•Non-river cruises carried some 8.7 million international passengers in 1999.

•On many ships, especially in the Caribbean, guests are encouraged to spend most of their time and
money on board, and opportunities to spend in some ports are closely managed and restricted.

Infrastructure cost

•Tourism development can cost the local government and local taxpayers a great deal of money.

•Developers may want the government to improve the airport, roads and other infrastructure, and possibly
to provide tax breaks and other financial advantages, which are costly activities for the government.

•Public resources spent on subsidized infrastructure or tax breaks may reduce government investment in
other critical areas such as education and health.
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Increase in prices

•Increasing demand for basic services and goods from tourists will often cause price hikes that negatively
affect local residents whose income does not increase proportionately.

•Tourism development and the related rise in real estate demand may dramatically increase building
costs and land values.

•This makes it more difficult for local people to meet their basic daily needs.

Economic dependence of the local community on tourism

•Diversification in an economy is a sign of health, however if a country or region becomes dependent for
its economic survival upon one industry, it can put major stress upon this industry as well as the people
involved to perform well.

•Many countries, especially developing countries with little ability to explore other resources, have
embraced tourism as a way to boost the economy.

•Over-reliance on tourism carries risks to tourism-dependent economies. Economic recession, the

impacts of natural disasters such as tropical storms and changing tourism patterns can all have a
devastating effect. Seasonal character of jobs.

POSITIVE ECONOMIC IMPACT OF TOURISM

Foreign exchange earnings

•Tourism expenditures generate income to the host economy and can stimulate the investment necessary
to finance growth in other economic sectors.

•Some countries seek to accelerate this growth by requiring visitors to bring in a certain amount of foreign
currency for each day of their stay.

•An important indicator of the role of international tourism is its generation of foreign exchange earnings.

•Tourism is one of the top five export categories for as many as 83% of countries and is a main source of
foreign exchange earnings for at least 38% of countries.

Contribution to government revenues

•Direct contributions are generated by taxes on incomes from tourism employment and tourism
businesses, and by direct levies on tourists such as departure taxes.

•Indirect contributions come from taxes and duties levied on goods and services supplied to tourists.

•The WTO estimates that travel and tourism’s direct, indirect, and personal tax contribution worldwide
was over USD 800 billion in 1998 – a figure it expects to double by 2010.

Employment generation

•The rapid expansion of international tourism has led to significant employment creation.

•For example, the hotel accommodation sector alone provided around 11.3 million jobs worldwide in
1995.

•Tourism can generate jobs directly through hotels, restaurants, nightclubs, taxis, and souvenir sales, and
indirectly through the supply of goods and services needed by tourism-related businesses.
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•Tourism supports some 7% of the world’s workers.

Stimulation of infrastructure investment

•Tourism can induce the local government to make infrastructure improvements such as better water and
sewage system, roads, electricity, telephone and public transport networks •This can improve the quality
of life for residents as well as facilitate tourism.

Contribution to local economies

•As the environment is a basic component of the tourism industry’s assets, tourism revenues are often
used to measure the economic value of protected areas.

•Other local revenues that are not easily quantified, as not all tourist expenditures are formally registered.

•Money is earned from tourism through informal employment (e.g. street vendors, informal guides,
rickshaw drivers).

•The positive side of informal employment is that the money is returned to the local economy and has a
great multiplier effect as it is spent over and over again.

•The WTO estimates that tourism generates an indirect contribution equal to 100% of direct tourism
expenditures.
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Lesson Proper for Week 2

Micro Perspective of Tourism and Hospitality

Traveler’s Motivation and Profile

hobbies and recognition and good reputation.

• Physical
• Interpersonal
• Status and prestige

• Cultural purists – they may be self-assured spontaneous adventurers, eager to immerse themselves in
a new culture.

• Social capital seekers – are avid users of social media.

• Reward hunters – their philosophy is that they have earned.

Exercise 1/ Activity 1

Try to remember your last fieldtrip or out of town of your family. Then analyze of what you do before and
after leaving the place.

Application of the Motivation Theories into Tourism Practice

MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

• Push-Pull Model

Tourism is based on the distinction between factors which encourage individuals to move away from their
home setting through tourism (push factors) and those attributes of a different place which attract or “pull”
them towards it.

• Push Factors are origin-related, intangible or intrinsic desires of the individual travelers, such as the
desire for escape, rest and relaxation, health and fitness, adventure, prestige, and social interaction.

• Fulfilling Prestige: To increase the social status people visit to different places. Sometimes the main
motive to visit a particular place like destination listed as world’s seven wonders to impress friends and
family.

• Enhancing Relation: people travel to different places:

To enhance communication with local community.

To exchange custom and traditions.

To participate in new activities.

To appreciate natural resources.

• Seeking Relaxation: All work and no play is not a good thing. People need to get away from the stress
of everyday life, and a nice sunny location with a beach might just be what the doctor ordered, and other
reasons are: To be away from home.

To relax physically.

To find thrills and excitement.

To visit a place not visited before.

• Enhancing Social Circle: Many people have family/friends that are located in different parts of the
world. They need to visit with them if it’s for a short period of time. The motive of travel may be:

To meet new people

To visit friends and relatives

• Sightseeing Variety: People travel because they want to see all beautiful scenery of different countries.
Others would want to take pictures because it serves as souvenirs. Visit of tourists to different countries
may be:

To fulfill the dream of visiting a foreign land/country

To sightsee tourist spots

To explore cultural resources

• Fulfilling Spiritual Needs: There are places in the world that hold religious importance for many people.
Religious travel is often related to a purpose such as seeing where the last pope was buried or travelling
to town where prophets were born. Visit to different destinations sometimes satisfy the need of spiritual
gains, people visit such places:

To reconnect spiritual roots To relax spiritually

MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

• Gaining Knowledge: People travel because they want to learn other cultures. They want to see the
difference between their culture and other cultures. They want to learn other cultures because for them
travelling is fun while learning. To visit a tourist destination the purpose can be:

To increase knowledge about foreign destination

To experience new different lifestyle or traditions

To see how people of different cultures live

• Pull Factors are those emerge as a result of the attractiveness of a destination as it is perceived by the
traveler, which include tangible resources, as well as traveler’s perception and expectation, benefit
expectation and marketing image of the destination. Various pull factors are:

• Events and Activities: different events and activities at the destination organized can act as

pulling force to attract many tourists towards it. These may be

Activities for entire family

Festivals and events

Entertainment

Shopping

Nightlife

Amusement / Theme parks

• Easy Access and Affordable: people always prefer to visit to those places which are safe, convenient,
and affordable. The main reasons behind to choose a particular destination are:

Affordable tourist destination

Safe destination

Convenience of visa

Value for money

• History and Culture: traveling to experience the places and activities that authentically represent the
stories and people of the past is also the motive of visitors to visit a destination. People travel these
places to explore:

Historical castles

Culture, Arts and Traditions

Outstanding scenery

• Variety Seeking: To explore region’s culture, specifically the lifestyle of the people in those
geographical areas and other elements that helped shape their way of life, people visit destination to
experience the

Traditional Food

Outdoor Activities
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Exotic Atmosphere

• Adventure: travel to remote, exotic and possibly hostile areas. Tourism may include activities such as
mountaineering, trekking, bungee jumping, mountain biking, rafting, zip-lining and rock climbing. Some
obscure forms of adventure travel include disaster and ghetto tourism. Other rising forms of adventure
travel include social and jungle tourism.

• Natural Resources: people choose to travel to a particular destination to explore fragile, pristine, and
usually protected areas that strive to be low impact and (often) small scale like Natural Reserves and
Beautiful Beaches.

• Marketing Efforts: A position that evoke image of a destination in the customer’s mind, image that
differentiate the destinations from the competition and also as a place that can satisfy their needs and
wants.

Exercise 2/ Activity 2

If you are a tourist and you want to go to other countries, what are your motivations to travel?

Destination Choice and Selection Tourists

Profile and

Lifestyles

Types of Tourists

1. Same-day Visitors – visitors who do not spend the night in a collective or private accommodation in the
country visited – Examples: Cruise ship passengers, or day-trippers visiting an attraction.

2. Tourists – visitors who stay in the country they visit for

at least one night – Examples: Visitors on a two week vacation, their purpose can be for pleasure,
business, and other purposes such as family reasons, health or transit.

3. Allocentric – prefers travelling for adventure, unusual destinations, does not require pampering,
willingness to take risks for fun and experience, immerse with local people and the indigenous people to
try their way of life, can live without worrying of the environment condition, willingness to take whatever
mode of transportation just to get to the desired destinations, and to try foods at the destination.

• Try new products, adventurous, prefer of beaten tracks, self-confident

MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

4. Psychocentric – type of tourist that is the opposite of the allocentric. Psychocentric is more interested
to see familiar and popular places, safety conscious, worry too much, more interested on pampered travel
and tour, not willing to take the risk even for fun, particular on the living environment / surrounding,
requires accessibility to all, sometimes need a guide.

• Non-adventurous, prefer the familiar travel, non-risks taker, passive type

5. Midcentrics – Dwell between allocentric and psychocentric.

6. Shoestring Travelers – type of tourists that are very particular on saving and spending money
according to budget or even below the budget. These persons are much like the allocentric or fall under
the allocentric travel because of his style and willingness to stay on cheap accommodation and uses
ordinary mode of transportation just to fulfill the desire to travel.

7. Organized Mass Tourist

• Packaged tours

• Prefers familiar environment

8. Individual Mass Tourist

• Major arrangements made through travel intermediary

• Tourists has some control over his or her itinerary

• Remains with the environmental bubble of home country.

9. Explorer

• Usually plans his or her own trip

• Avoids developed tourist attractions

• Mixes with locals but still protected by environment bubble

10. Drifter

• Plans his or her trip

• Avoids tourist attractions and mix with locals

• Immerses in the host culture, partakes of the local food, lives in native shelter and observe habits and
lifestyle.
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Lesson Proper for Week 3

Micro Perspective of Tourism and Hospitality Page 1 of 4

Activities in Hospitality Industry

1. Food and Beverages

● The food and beverages sector which is professionally known by its initials as F&B is
the largest segment of the hospitality industry.
● The F&B industry is estimated to provide 50% of all meals eaten in most countries
today. It comprises of establishments primarily engaged in preparing meals, snacks,
and beverages for immediate consumption on and off the premises.

2. Travel and Tourism

• Travel and tourism deal with services related to moving people from place to place. Buses,
cabs, planes, ships, trains and so on are all part of the travel industry.

• Leisure travel is when a person spends money on lodging, food, and recreation while taking
vacation trips, and business travel is when a person travels for work and spends money on
lodging and food. Some people also spend on recreation while on a business travel.

3. Lodging

• Lodging means accommodation for a period or a place to sleep for one or more nights. Fancy
hotels, youth hostels, elder hostels, campgrounds, motels, and other businesses that provide a
place for people to sleep overnight are all in the lodging industry.
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• Lodging businesses markets to other market segments such as business travelers, leisure
travelers, long-stay travelers, budget travelers and special travelers like people working with the
government, airlines, and military.

4. Recreation

• Recreation is any activity that people do for rest, relaxation, and enjoyment. The goal of
recreation is to refresh a person’s body and mind.

• Entertainment businesses which provide shows such as movie or theater, attractions which
are places of special interest of visits such as zoos and museums, spectator sports and
participatory sports are all parts of the recreation business.

Exercise 1 / Activity 1

Think in your mind, a mock business that connects to the segments of Hospitality sector. .

Hospitality Technology Trends

New technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) have made
their way into the hospitality industry. The following are some of the latest trends in hospitality
technology.

• Smart Hotels – Occupancy sensors can measure the fluctuations in occupancy by using
smart thermostats to check the room temperature. Hotels can use smart energy-management
systems to optimize energy consumption in real time, all year round. These solutions use
advanced algorithms that analyze historical temperatures and peak demand loads, reducing hotel
energy costs by up to 20%.

• Automated check-in and check-out – Guests can check-in remotely through their
smartphone, significantly saving time for the concierge. This technology also alerts the staff
when guests are about to arrive, giving them the opportunity to offer upsells and personalize the
guest experience. The guests can also self-check-out at the end of their stay, all from the same
app or website.

• Chatbots – This is the latest buzz in hotel technology. A chatbot is a service that allows
you to interact with an artificial intelligence (AI) via a chat interface. This trend takes advantage of
the popularity of messaging apps to improve the customer experience. For example, helping
guests to schedule room cleaning, asking for late check out at the time of leaving, or a fruit basket
before arrival.

• Smart concierge and mobility solutions – This technology involves integrating smart
mobility solutions into the guest experience. For instance, a web widget allows customers to
book a ride to the hotel from the moment they boo their stay through the webpage. Once in the
hotel, the guest can approach the concierge in order to book and manage rides on their behalf.
Moreover, many hotels feature selfservice kiosks in the lobby, facilitating guests to search for all
available transportation options for getting around the city.

• Near-field communication (NFC) technology – This new technology for wireless data
transfer senses technology nearby your device allowing to communicate without needing an
internet connection. NFC improves how consumers pay, transfer files or connect to other
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devices. For instance, with this technology, guests can use their smartphone as a smart room
key or to pay for various services.

• Recognition technology – This is a new level in check-in identity verification. Some

hotels are already using face scanners to verify the identity of guests at check in, and to allow
them access to the dining room for breakfast. One such example is the InterContinental Shanghai
Wonderland, which offers a seamless experience by allowing guests to pay through WeChat, the
Chinese mobile payment app.

• Blockchain and cryptocurrency – Blockchain technology has come a long way since it
was associated exclusively to cryptocurrency sites. This technology offers transparency, security
and control of electronic transactions. Blockchain also eliminates the need for third parties.

• Robots – Another exciting tech trend has been the emergence of robots and many
hospitality companies are putting them to good use already. Perhaps the most famous example
of this is the Hilton robot concierge “Connie”, which uses speech recognition and AI to respond
to queries from customers and intelligently learn from interactions.

• Big Data – Data collection has grown rapidly across almost all industries, but can be
used to great effect by hospitality businesses to provide more personalized experiences. As an
example, it could be used by travel agents to make intelligent destination recommendations,
based on age, gender, budget, previous locations visited, and so on.

• Virtual Reality – This has been one of the most talked-about technology trends of recent
years, and its uses within the hospitality industry are almost endless, due to its capacity to place
customers in virtual settings. This can be used everywhere from the booking stage of the
customer journey through to the hotel

• Augmented Reality – Finally, augmented reality has exploded in a similar way to VR

technology, but is even more accessible, typically requiring little more than access to a
smartphone and the internet. Unlike VR, which places users in a digital environment, augmented
reality is about enhancing the real-world environment through information overlays.

Hospitality Marketing Trends

Here are the upcoming 10 hospitality marketing trends within the hotel industry that can help
grow your business:

1. Personalization Marketing

Personalized marketing allows companies to deliver individualized content to target

customer through the use of automation technology and data collection. The goal of
personalization marketing is to engage potential customers by communicating with them as
individuals. For hotels and tour operators, it’s important to personalize their services for their
guests and clients through targeted emails. For example, targeted emails can be sent to potential
customers whenever an upcoming discount is offered by the travel agency or hotel.
Personalization marketing is one of the most direct hospitality marketing strategies you can use
to establish a more personal relationship with your customers and encourage them to make a
return visit.

2. Voice Search
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As the next generation of Web users prefer communicating through voice activation, this
can be a great opportunity for the hospitality industry. Voice search is a type of voice control and
recognition technology that primarily works with tablets, smartphones, and other similar devices.
In fact, this marketing trend could soon eliminate the need for internet users to press buttons or
type their search queries online. Hotel guests can book a hotel room via their smartphone by just
speaking to the device. They can even control the room’s functions, such as lights, music, or
heating through voice search. It is expected that more online marketers will start investing money
into this new trend in the near future.

3. Customer Experience Marketing

In the competitive world of hospitality industry, customer experience is essential in gaining

loyalty.

Keep in mind that providing an excellent customer service on its own doesn’t always result in
direct profits. It is crucial to develop comprehensive customer experience marketing plans to
meet the needs of your hotel or travel company. To generate healthy returns and a steady stream
of returning clients, you must compile analytics from online customer testimonials on review
websites. This will provide you with a wealth of information about your customer’s preferences,
how your company can do better, and which factors will lead to future conversions.

4. Artificial Intelligence (AI)

Artificial Intelligence has the ability to streamline processes and provide valuable insights.
Most online hotel room seekers tend to use aggregator websites to book their accommodation
through, while some may land on a hotel’s homepage but leave without booking. In most cases,
users would prefer to speak with a hotel staff without having to enter preferred dates and check-in
details, which can be quite time-confusing. By using artificial intelligence chatbots on your
website, you can provide a personalized service and develop a robust system. Thanks to AI
technology, your guest will even be able to place their room service requests through your AI-
enabled website, which will surely save your hotel staff time.

5. Influencer Marketing

Influencer marketing is fast becoming a great opportunity for hospitality marketers to

remain relevant in a highly competitive industry. Influencer marketing is a digital version of the
traditional world-ofmouth for increasing hotel brand awareness and generating direct bookings.
By using this strategy, you can reach a much larger audience and attract more customers to your
hotel or travel business through credibility and trust building among consumers. For example,
your influencer marketing campaign can be specifically aimed at young people who are
increasingly choosing Airbnb services over conventional hotels. You can engage your potential
customers with authentic content that does not sound too brand-oriented.

6. Virtual Reality

When online users look for information on tours and hotels, they can make better
decisions through videos and pictures rather than content. This is where virtual reality will have
an impact on user’s experiences as they can virtually put themselves right there in the hotel room
or resort to see whether it meets their needs or not. Virtual reality is not just an entertaining
marketing feature, but it also offers endless possibilities. The hospitality industry can use virtual
reality to show their customers the local sightseeing attractions. For example, if your hotel
receptionist recommends the local waterpark, your guests can check out the place through VR
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before they go. Virtual reality helps take away the guest’s or traveler’s uncertainty and is an
essential tool for all hotel and tour operators to use.

7. User Generated Content

User generated content is created and shared by online end-users. It can come in
different forms, such as testimonials, comments, forums, blog posts, and social publications, to
name but a few. When a prospective customer looks for your brand’s content online, he or she
will normally read the customer reviews about your company on other websites or social media
platforms. If you implement user generated content correctly, you will be able to increase your
brand awareness significantly. This strategy will also help you get more room bookings. One
effective way is to encourage your guests to share their experience on social media. To do this,
you can run contests, create brand hashtags, or create photo portfolio.

8. Augmented Reality

One of the most interesting hospitality marketing strategies is augmented reality. This
tool works by altering one’s perception of their physical surroundings through the use of
computer technology. Augmented reality allows hospitality businesses to change the way their
clients perceive the environment they are in. Hotels, for example, can sell room online by
enhancing their features through AR. There are hundreds of ways you can entertain your guests
through augmented environments, such as allowing the guest to see virtual depictions of their
favorite celebrities in the hotel. You will also be able to use this tool to send virtual keys to your
guests through their smartphones.

9. Video Marketing

Travel industries and hotels can use video marketing to engage their target audience from
You Tube videos, Instagram, or Snapchat, to going Live on Facebook. Gaining brand exposure
and capturing the attention of your audience can be done through written content, but in order to
engage them instantly, why not give them easily digestible videos about your hotel or resort. For
example, you can use video marketing to capture the relaxing moments guests can enjoy in your
hotel’s facilities. Keep in mind that your videos or photos must be very high quality in order to
attract customers.

10. Remarketing

This marketing tool involves targeting potential customers who have already viewed your
websites or shown interest in your services. Remarketing is a way of re-engaging people who
have spent time browsing pages on your website, but without booking a room. You can use this
tool to reconnect with those who have visited your site and offer them a discount to encourage
them to return. For example, you can set up this strategy through Google analytics by the user’s
demographics or interests. It is also possible to filter these searches to collect the information
you need about the people who visit your website.

Exercise 2 / Activity 2
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Ask at home and tell your family and friends which social media platforms do they used and

why?

The Relevance of Revenue Management for the Hotel and Hospitality Industry

1. Revenue Management

Due to its multifaceted nature, revenue management is one of the most complex but
fundamental tools for maximizing your property’s profitability. A Revenue Management System
(RMS) analyzes data from past, present, and future forecasts to ensure you’re offering the right
room at the best rate

to your ideal customer at the right times.

To ensure your RMS is serving the unique needs of your property, set the parameters of
your system around the seasonal and geographical characteristics of your property or your own
management goals. Then, integrate the data from your Property Management System (PMS) so
that the algorithm can use the specific details of your hotel’s operations to determine your rate.

2. Staffing

Another important operational consideration is staffing, which can be difficult due to

constant demand fluctuation. If your staff schedule is poorly managed, you could find yourself
paying employees during downtime on quiet nights or end up understaffed during a busy period.

3. Hiring

Technology tracks and predicts numbers, but people drive home your property’s unique
value proposition. So, how can you help your hiring managers find the right people that
complement your business model?

Recruiting software allows HR pros to survey a large population of applicants with

desirable skills while also attracting suitable candidates using targeted messaging. The beauty of
these tools is that they’re optimized for the hospitality industry because they take into account the
high turnover and retention issues that make it difficult for hotels to find good hires. Some
software programs also offer data-backed screening tools that ask targeted hospitality-related
questions to screen for the best candidates.
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4. Partnerships

Whether it’s with a spa, salon, restaurant or travel and tour services, a smart strategic
partnership can enhance the visibility and desirability of your hotel. To set apart a true partner
from a simple vendor, go beyond your gut and back up your decisions with technology.

5. Procurement

To create this type of strategy, you need to track costs, consumption rates, inventory,
pricing and menu planning. Electronic procurement (e-procurement) is becoming increasingly
popular in the hospitality industry because it helps you create a streamlined, predictable flow of
goods for reasonable prices.
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Lesson Proper for Week 4

Characteristics of Tourism and Hospitality Sector

IV. DEVELOPMENT OF THE LESSON

Based on the preliminary activities, what did you notice about it?

You may now proceed to the lesson.

The Economic Characteristics of Tourism Industry

Perishability-is one of the most important characteristics of the tourism industry. The
product/services in the tourism and travel industry are consumed as they are produced. Hotel
rooms and cable car seats cannot be warehoused for future sales. When a hotel room is not
booked tonight, you cannot take “tonight” and sell it tomorrow. Once the train left the station,
unused capacity cannot be sold afterwards – if it was no time-traveling train. As an uncertainty in
customer demand leverages this issue, hotels and travel agencies tend to overbook available
rooms and seats.

• Inconsistency-products of the tourism industry always differ. Even the same hotel room

in the same week with the same weather can be perceived differently due to the mood of the chef.
It is always about the experience that the customer makes. Rational product attributes like price,
nights of stay, and additional services can only be compared to a minor degree. It is challenging
to deal with the customer perception of the product (the perceived quality) as it is highly affected
by numerous unimportant aspects such as weather, construction sites, other customers etc.
Hence, the product is very inconsistent and cannot be standardized.

• Investment and Immobility-talking about hotels and other accommodations there is usually a
big capital lockup in the assets. Hotels have furniture, restaurants, TV-sets, laundry-service,
pools, saunas, etc. – invested capital that must pay off. And that is not all – all those investments
are attached to one locality which means that those tourism companies are to a huge extent
dependent on the attractiveness of the region, the country, its surroundings and so forth.

• People-oriented-the tourism industry builds entirely upon people. The interaction between
the staff and the customer determines the perceived product quality. Unlike tangible products
where the customer buys certain features, production quality, durability, etc, the holiday quality
results from personal interactions starting with the information and booking process over the stay
up to the Page 2 of 2

journey home.
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• Inseparability-most travel products are first sold and then produced and consumed at the
same time. This is an aspect which clearly sets tourism apart from tangible products. When you
buy a new computer, it is produced and shipped before you see it on the website or at the
retailer’s premise. The consumption of that computer – using it – takes place after purchase at
your home. You cannot take the hotel room home – only the

small bottles of shampoo and toothpaste. And you cannot enjoy the alpine sleigh ride in your
living room. Tourism products can only be consumed at the supplier’s premise. Tourism and
hospitality product are for the guest’s use only, not for possession. Even more unique, for us to
produce our product -hospitality- we must get the guest’s input. Imagine General Electric building
a refrigerator with the customer in the factory, participating in the actual construction of the
product! Seems preposterous, yet we do it every single day, numerous times per day, and in a
uniquely different way each time.

• Intangibility-tourism products are intangible. A night in a hotel, a day in ski-resort, the calm
flight with the nice attendant, and the smiling tour-guide taking you to the peak of an alpine
mountain – all this cannot be touched. Tourism is all about the time spent and the experience
made. The products sold by tourism companies are both cannot be reproduced and reused. Nor
can the feeling of consumption be captured to its full extent. There are merely attempts with
photographs and video cameras. Probably everybody was already in the situation where you
showed your holiday pictures to your family or friends and said “Well, it looked better when I was
there.” The picture cannot really reproduce the sentiment. Tourism is a subjective picture
planted to the customer’s minds. In the hospitality industry, we constantly strive for outstanding
guest satisfaction, which leads to guest loyalty, and yes, profit.

• Inflexibility-travel products are inflexible in terms of fluctuation. Hotels cannot change their
capacities quickly enough to react on spontaneous fluctuations in demand. Hence, such
companies try to balance between high and low demands, so that it is not too much of a pain for
the company when restaurant tables remain empty and for customers when there are no more
tables available.

• Imitability-offers and products by tourism companies are generally easy to copy. When the
neighbor hotel adds a masseur to its Spa offer you only need somebody with a firm grip and here
you go. So how can hotels build a unique selling proposition? Through originality, consistency,
location, etc. – but they are not by hoping that their services are not imitable.
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Lesson Proper for Week 5

IV. DEVELOPMENT OF THE LESSON

SIZE AND SCOPE OF THE TOURISM INDUSTRY

The size and scope of tourism and hospitality industry refer to the range of businesses that
provide services and facilities. The tourism and hospitality economy are one of the country’s key
industries with huge growth prospects in jobs. In employment terms, restaurant is easily the
largest sector, closely followed by a pub, bars, and clubs with hotel sector growing more slowly,
and the contract food service sector holding steady.

• The World Travel and Tourism Council (WTTC) is an industry lobby group comprising the
major tourism corporations in the world. As part of their work, they have estimated the size and
scope of the tourism industry using sophisticated economic techniques. They state that travel
and tourism is one of the largest and most dynamic industries of today’s global economy.

• The travel and tourism industry’s total percentage of world gross domestic product was
10.2%. The world travel and tourism industry supported 292 million jobs (11% of the world’s
jobs). The third largest sector of workforce size is in the hospitality, leisure, travel, and tourism.
Hospitality industries grow larger to the sector that has 89% of workforce, 43% of self-catering
accommodation, holiday parks and hotels. Restaurants have increased by 29%. Nearly half of the
sector’s workforce is part-time much higher than 28% across the economy as a whole – and are in
pubs, bars, and nightclubs 58% fewer are in travel services 23%. This sector employs 7.2 percent
of the total population. Meanwhile, the world travel and tourism accounted for 6.6% of the world’s
exports and there were almost 1.25 billion international tourism trips and over 6 billion domestic
trips.

• The scope of tourism, therefore, is broad and encompasses several activities. Given the
sheer size of the tourism industry, it can be helpful to break it down into broad industry groups
using a common classification system. The tourism related groupings are accommodation, food
and beverage, recreation and entertainment, transportation, and travel services.

• These industry groups are based on the similarity of the “labor processes and inputs” used
for each. All these businesses need staff to check in guests, provide housekeeping, employ
maintenance workers, and provide a place for people to sleep.

Exercise 1 / Activity 1

Directions: Think of, how Tourism Industry help the individual in their country or place?
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

HIERARCHY IN TRAVEL COMPANY

• It is basically classifying the professionals working in any travel or tour company. This
categorization typically depends on some pre-specified norms which may comprise the
professionals’ power or authority in the respective company, the roles & duties they are provided
along with the core decision making ability they have in that company. Broadly saying there are 3
major levels in hierarchy in travel company and all of these 3 levels are clearly described as below
in brief in a manner of chronological order means the highest one in the hierarchy is placed at the
top while the lowest one is placed at the end.

Supervisory Travel Company Level

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• These professionals have full decision-making power in the company, and they lead the entire
employees to work for the growth and benefit of the company. The different job profiles at this
level of the hierarchy in Travel Company include these following:

Travel Company Director Director – Tour Planning

Travel Chief Manager Senior Administrator

President Chief Marketing Officer

Division Manager Chief Finance Officer

Vice President Director – Planning & Coordination

Account Manager Administrator

Chief Executive Office General Manager

Director – Marketing Regional Manager

Executive Travel Company Level

• The professional at this level of hierarchy in Travel Company are mid-level officials in the
company. Their job duties involve managing as well as handling & taking care of the team of
professionals under them while abiding by the orders of seniors. These professionals do have big
experience of the travel field and their major duty relies in management of the clients & customers
for the company’s profit & growth. The various job profiles at this level of the hierarchy in Travel
Company include following job titles.

Administrative Assistant Project Manager

Senior Business Developer Customer Service Associate

Customer Service Manager Business Analyst

Appraiser Team Leaders

Business Developer Associate Assistant General Manager

Operational Travel Company Level

• The professional at this level of hierarchy in Travel Company are professionals who interact on
daily basis, face to face, with the clients of the company. These professionals though possess
little experience of the field still are very significant for the company’s smooth functioning. The
various job profiles at this level of the hierarchy in Travel Company include following job titles.

Manager Consultant
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Sales Manager Training Manager

Tour Manager Company Representative

Customer Sales Representative Travel Executive

Manager of Customer Billing Clerk

Marketing & Promotional Manager Secretary

Assistant Office Manager Receptionist

Sales Agent Associate

BSTM

SCOPE AND STRUCTURE OF TOURISM AND HOSPITALITY

ORGANIZATION Page 4 of 6

Intern

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SCOPE AND STRUCTURE OF TOURISM AND HOSPITALITY

ORGANIZATION Page 5 of 6

Exercise 2 / Activity 2

Directions: If you will be given a chance to choose one of the positions in the mentioned above.
What would it be? Why?

Hospitality Industry Organizational Structure

• A hotel organizational structure is a comprehensive plan by a hotel owner to define

departmental activities and responsibilities. This structure brings order to every aspect of hotel
operation from the front desk and room service to the human resources department. Hotel
organizational structures are necessary to ensure maximum profitability from each room,
restaurant, and bar daily. Your hotel can run efficiently if it creates an organizational structure that
is easy to understand.
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BSTM

SCOPE AND STRUCTURE OF TOURISM AND HOSPITALITY

ORGANIZATION

• A hotel's organizational structure is useless without an initial listing of organizational

objectives. These objectives address internal and external affairs for the hotel so that the goals it
sets forth can be achieved by appropriate personnel. An internal objective for a hotel may be
weekly meetings between department heads to communicate operational problems. External
objectives within a hotel organizational structure may include recruitment goals for seasonal staff
and variable pricing for weekdays and weekends.