REVIEWER IN MACRO

Relationship of Hospitality and Tourism

The hospitality industry act as the main supplier of safe and satisfying products and services for
tourism (supply chain integration).

COMPONENTS AND NETWORKD OF TOURISM AND HOSPITALITY

Food and Beverage services

Accommodation or Lodging services

Leisure and recreation services

Tourism services

Food and Beverage services

- Begun from simple origins: as people traveled from their homes, going about their
business, they often had a need or desire to eat or drink.

2 TYPES OF F AND B SERVICES

ON PREMISE ex. Restaurant

OFF PREMISE – it is partially prepared ex. Catering

F AND B OPERATIONS

COMMERCIAL FOOD SERVICES AND NON COMMERCIAL FOO SERVICES

COMMERCIAL FOOD SERVICES

- Their primary business is Food and Beverages ex. Restaurant

TYPES OF COMMERCIAL FOOD SERVICES

- Quick Service ex. Fast food

- Family Restaurant – does have a table set up but not totally a fine dining set. Ex. Shakeys
- Themed Restaurant
- Fine Dining

NON COMMERCIAL SERVICES

- They serve food and beverages product but it is not their primary business
Ex. Hospital, school, Business Center
SERVICES IN FOOD AND BEVERAGES

TABLE SERVICES

SYSTEM SERVICES

ASSISTANT SERVICES

SELF SERVICE

SINGLE POINT SERVICE

SPECIALLIZED SERVICE

Accommodation or Lodging services

- Lodging means accommodations for a period or a place to sleep for overnight or long-
term services to people.

LODGING – the establishment

ACCOMODATION – how you entertain the guest

DOT (DEPARTMENT OF TOURISM) – governing of the hotels

BURJ KHALIFA has a 7 stars rating

LODGING ESTABLISHMENT CAN BE CLASSIFIED BY:

- LOCATION
- NUMBER OF GROUPS
- LEVEL OF SERVICES
- OWNERSHIP (INDEPENDENT, SINGLE OWNER, CHAIN)

Leisure and recreation services

Recreation is any activity that people do for rest, relaxation and enjoyment to make them free
from the demands of work and duty.

5 COMPONENTS OF LEISURE AND RECREATION SERVICES

- SPORTS AND PHYSICAL RECREATION:

Sports is a form of physical activity which involves some element of competition between 2 or
more groups and usually is governed by rules and uncompetitive activities.

Can be divided into 2 types

1. BASED ON THE ROLE OF THE PERSON INVOLVED:

-active or participative, e.g. playing volleyball and basketball

-passive or spectator, e.g. watching a game

2. BASED ON THE LOCATION OF PHYSICAL ACTIVITY

-Land-based recreation and tourism

examples: hiking, golfing, biking, camping, and sports game

-Water-based recreation and tourism

examples: swimming, scuba diving, sport fishing and canoeing

- ARTS AND ENTERTAINMENT

Arts and entertainment are the things that take place outdoor which ‘entertain you’.
- COUNTRYSIDE RECREATION
Countryside recreation can take place in National Parks, Areas of Outstanding Natural
Beauty or in places that are considered heritage in a country.
- HOME-BASED LEISURE
Home-based leisure activities that can be done without leaving your home but in the
comforts of your home
- PLAY AND ACTIVITY-BASED LEISURE
This kind of leisure is mainly associated to activities that involve children, young adult and
teens

Tourism services

The travel services and tourism components of hospitality and tourism is complex web of
relationships between a variety of suppliers, tourism products, and destination marketing
organizations, tour operators, travel agents and transportation.

There may be 2 types of travel:

Business travel wherein a person travels to another place for work and spends money on
hospitality and tourism products (lodging and food and beverages) and

Leisure travel wherein a person travels for recreation and entertainment.

TRANSPORTATION

Transportation is the process of making movement of people from one place to another
using primitive and simple to modern and complex means of transportation.

DIFFERENT TYPES OF TRANSPORTATION

AIRLINE INDUSTRY

CAR RENTAL

WATER TRANSPORTATION

COACH SERVICES

COMPONENTS OF TRAVEL SERVICES

TRAVEL AGENCIES

A travel agency can be small and privately-owned entity and is a business that operates as
the intermediary between the travel, tourism and hospitality industry (supplier) and the traveler
(purchaser).

ONLINE TRAVEL AGENCIES (OTAs)

One of the advantages of technology can be found in hospitality and tourism. Today,
travelers can now search and book everything they need for traveling online.

TOUR OPERATORS

Tour operators are companies or individuals who package all components of offered trip
or tourism and hospitality services and then sell them to the traveler personally or through retail
outlets or travel agencies.

- DIFFERENT KINDS OF TOUR OPERATOR

INBOUND OPERATOR (INSIDE OUR COUNTRY)
OUTBOUND OPERATOR (GOING OUTSIDE OUR COUNTRY)

DESTINATION MARKETING ORGANIZATIONS (DMOs)

This includes national tourism boards, government agencies such as Department of

Tourism, city or provincial tourism offices and community tourism offices. DMOs promote “the
long-term development and marketing of a destination, and the maintenance of such places.

Other organizations

This may include other organization that not only focuses in leisure travel but also
business trips and other functions.
IATA (INTERNATIONAL AIR TRANSPORT ASSOCIATION)

PTAA (PHILIPPINE TRAVEL AGENCIES ASSOCIATION)

PATA (PACIFIC ASIA TRAVEL ASSOCIATION)

United Nations World Tourism Organization (UNWTO), 2008

Tourism is a social, cultural and economic phenomenon which entails the movement of people to
countries or places outside their usual environment for personal or business/professional
purposes.

4 PERSPECTIVE OF TOURISM

1. PERSPECTIVE OF TOURIST
- They see tourism as a new experience and they expect that they will be satisfied
2. PERSPECTIVE OF BUSINESS
- To gain more profit
3. PERSPECTIVE OF GOVERNMENT
- Taxes is collected by the government
- Revenue and taxes
4. PERSPECTIVE OF HOST AND COMMUNITY
- They see tourism as a opportunity for a new employment

2 FORMS OF TOURISM

DOMESTIC AND INTERNATIONAL TOURISM

DOMESTIC VISITOR

1. LOCAL TOURIST – within a specific city

2. INTRA REGIONAL TOURIST – visiting within your region
3. INTER REGIONAL – from one region to another region

BARRIERS TO TRAVEL

1. Not enough time off from work or school

2. Lack of money

3. Family and other commitments

4. Health and Safety Concerns

5. Physical and Geography Barriers

6. VIsa and Immigration Restriction

7. Language and Cultural Barriers

8. Fear of the unknown

9.Environmental concerns

10. Political and Legal Barriers

11. Lack of Interest / motivation

12.Technological Barners

13. Pandemic Related Restriction

COMPONENTS OF TOURISM

(5 A’s)

ATTRACTION

Attraction is considered to be the most important basic component of tourism. Attraction

means any things or any places that a person desires.

ACCESSIBILITY

This component means the reachability of the place of destination the tourist wants to visit via
various means of transportation.

ACCOMMODATION

This is the primary service that the tourist needs at the destination. Accommodation is a
place where the tourists can find food and shelter.

AMENITIES

Amenities are extra facilities that can add attractiveness, accessibility, and
accommodation for the tourists.

ACTIVITIES

Incorporated in Attraction
DIFFERENCE OF FACILITIES AND AMENETIES

Facilities has an extra charge and amenities is a complimentary thing that has no extra charge

HOSPITALITY

The word hospitality is derived from the Latin word, “hospes” which means guest.

PINEAPPLE IS THE SYMBOL OF HOSPITALITY

- It started when European brings a pineapple to American as a token and that brings being
a hospitable

3 PERSPECTIVE OF HOSPITALITY

1. GUEST PERSPECTIVE
2. The Operator Perspective
3. The Tech Perspective

MEANING OF TOURIST

The origin of the word ‘Tourist’ dates back to the year 1292 AD. ‘Tourism or Tourist’ word is
related to the word ‘‘tour” which is derived from the Latin word ‘tornus’, it means a tool for
describing a circle or a turner’s wheel. It is from the word ’tornus’ the notion of a “round tour” or
a packaged tour has come in vogue.

2 CLASSES OF VISITORS

TOURIST- staying more than 24hrs

EXCURSIONIST- staying at least or less than 24hrs

The UNWTO states that tourists can be:

Domestic tourist

Inbound tourist

Outbound tourist
FACTORS AFFECTING TOURIST BEHAVIOUR

1. GEOGRAPHICAL FACTORS

-Some physical factors like geographical and climatic conditions, facilities and amenities available
at the destination, advertising and marketing conducted by tourism business alter the decision-
making of the tourists.

2. SOCIAL FACTORS

-A few social factors such as a person’s social network, which provide first hand information that
can alter a person’s decision of visiting or not visiting a particular place.

3. PLACE OF ORIGIN

There can be a broad spectrum of tourist behavior depending upon the place they belong
to. North Americans like to follow their own cultural framework. Japanese and Korean tourists like
to visit places in groups.

4. TOURISM DESTINATION

It is a major contributing factor altering tourist behavior. If a destination has all basic
provisions such as electricity, water, clean surroundings, proper accessibility, amenities and has its
own significance, it largely attracts tourists.

5. EDUCATION OF TOURIST:

The more educated the tourist is, the wider range of choices, and the knowledge of places
he would have. This drives the decision-making when it comes to choosing a destination.

PLOGS MODEL OF TOURIST BEHAVIOUR

ALLOCENTRIC (THE WANDERERS)

A tourist who seek new experiences and adventure in a wide range of activities. This
person is outgoing and self-confident in behavior

PSYCHOCENTRIC (THE REPEATER)

A tourist falling in this category is usually non-adventuresome. They prefer to return to

familiar travel destinations where they can relax and know what types of food and activity to
expect.

MIDCENTRIC (COMBINATION)

This category of tourists covers the ones who swing between the said two types.
ELEMENTS OF TRAVEL

Reason for journey

This is a crucial element of travel as there is no reason for a person to visit a place then there
would be no any travel or journey.

Some of the reasons for travel may be classed as:

-work or business

-entertainment, sports and theater

-outdoor recreation-boating, fishing

-personal-wedding, funeral, medical

-visiting family and friends

-conventions and meetings

--holiday celebration

Distance to travel:

The distance to travel is another important element and can determine what form of transport
would be taken to complete the journey.

Length of stay at the destination

The third element of travel is the length of stay at the destination. The definition of
tourists and excursionists by UNWTO is directly associated to this element.

Residence of the tourist

This is an important element for the destination’s government for them to monitor which
country or race visits their country frequently.

Form of Travel

The last element of travel is the forms of transport which is also considered to be a crucial
element to travel and as mentioned before the other factors can contribute to what form of
transport is selected.

NATURE OF A TOUR

Domestic Tourism: involves traveling exclusively within the residents’ own country with the
benefit of having no problem in language barrier, currency, documentation barrier and socio-
cultural differences.
International Tourism: involves traveling outside the country and may show possible problems in
language barrier, currency, documentation barrier (visas, passport) and socio-cultural differences

Package Tour: also referred to inclusive tour is product wherein tourist can buy all-in-one services
of all the components of tourism and hospitality that will be needed by the tourist to be relaxed in
his or her destination.

Package tour classifications:

1.) independent inclusive tour (IIT) wherein the tourist travel to the site or destination
individually,

2.) group inclusive tour (GIT) wherein the tourist travel to the site with the company of other
tourists.

TOURIST PRODUCT

Tourist product in the simplest explanation is what the tourist buys. There are four characteristics
of tourist products:

Tourist product is service.

Tourist product is largely psychological in its attraction.

Tourist product tends to vary in standard and quality.

Supply of the product is not fixed.

SERVICES MAY BE CHARACTERIZED AS:

Intangible: can’t be seen, tasted, felt, heard or smelled before being purchased

Inseparable: can’t be separated from service providers

Variable: quality depends on who provides them and when, where and how

Perishable: can’t be stored for later sale or use

TOURIST DESTINATION

A tourist destination is a geographical location which has the necessary components to attract
tourists and meet their needs- usually due to its cultural and natural values.

The success of a tourist destination may be dependent on three basic factors:

attraction, amenities and access.

Attractions - are the motivation of a tourist to want to visit a site or destination.

Amenities - include a wide range of supporting facilities and services like accommodation, food,
entertainment and recreation which are required by the tourists at the destination.

Access - in terms of development and maintenance of transport which provides the link to the
tourist destination as well as the tourist attractions at the destination. Regular and convenient
transports also add to the attractiveness of the site.

Other Organizations in Tourism and Hospitality Industry

Tourism Infrastructure and Enterprise Zone Authority (TIEZA)

Tourism Promotions Board (TPB)

Intramuros Administration (IA)

National Parks development Committee (NPDC)

Nayong Pilipino Foundation (NPFI)

Philippine Retirement Authority (PRA)

Philippine Commission on Sports SCUBA Diving (PCSSD)

Duty Free Philippines Corporation (DFPC)

Philippine Tour Operators Association (PhilTOA)

World Tourism Organization (UNWTO)

Tourism Educators and Movers (TEAM) Philippines

Travel Cooperative of the Philippines (TCP)

Hotel and Restaurant Association of the Philippines (HRAP)

Philippine Hotel Owners Association

Philippine Travel Agencies Association

Pioneers in the TH Industry

CESAR RITZ - the general manager of the Savoy Hotel in London. Ritz popularized the phrase “le
client n’a jamais tort’, translated as the customer is never wrong. It is known today as the
customer is always right.

Ellsworth Milton Statler - Considered to be the premier hotel-man of all time. Known as the Father
of the Modern Hotel Industry.
Mamerth Banatin - a Filipino travel pioneer who founded and acts as the president and CEO of
Adam’s express in the Philippines.

- Adam’s Express is one of the Philippines major travel agencies and one of the top
producers of Filipino tourists to Europe.

Conrad Hilton - was once recognized as the ”biggest hotel man in the world”. He was described by
the New York Times as the “master of hotel finance”. He also pioneered the 1 to 5 rating system of
hotels and combined hotels with resorts and casinos.

Thomas Cook - Recognized as the first professional travel agent. He was the founder of the first
world travel agency. He is credited for making world travel possible for the middle class. The
phrase “Cook’s Tour” arose from his name which means touring to many places and briefly stops
at each place for a period of time.

Howard Dearing Johnson - Was the pioneer of brand leveraging and he was one of the first to
introduce franchising in the TH industry in the 1930’s.

J. Williard Mariott - Founded the Marriott Corporation which has continued to be an important
asset to the hospitality industry. He quoted, “take care of your people and they will take care of
your business.”

Ray Kroc - Was an entrepreneur best known for expanding the Mc Donald’s. In 1955, he founded
McDonald’s system incorporation and opened its new restaurant in Des Plaines, Illinois. Kroc
developed several operational guidelines such as Quality Service Cleanliness and Value. Kroc’s
motto, “Never be idle a moment,” was also incorporated into the business.

Isadore Sharp - The founder and chairman of Four Seasons Hotels that was built in downtown
Toronto. The Four Seasons introduced complimentary shampoo, 24-hr room service, and same
day clothes clothing and cleaning.

Ruth Furtel - Was the founder of of Chris Steakhouse, the largest upscale restaurant chain in the
US. It has 59 operations-54 in the US and Puerto Rico and 5 internationally. It sells more than
11,000 steaks daily with a gross income of two hundred million USD per year.

Alejandra Clemente - Alejandra “Dading” Clemente, founder of Rajah Tours Philippines and
pioneer in the Philippine tourism industry, stands out among the successful women of her
generation. She and her husband built a business from 10,000 pesos only in 1972.

Jose D. Aspiras - Was the every first chairman of the Philippine Tourism Authority. He also became
the president of the Pacific Asia Travel Association and World Tourism Organization which
promulgated the Manila declaration of world tourism.
Factors that favor the growth of Tourism and hospitality

Rising expenditures capacity of large sections of the population

Increasing number of retired people who want to leisure travel

Increase in the number of holidays- special holidays, non-working holidays, etc.

Migration of people

People are becoming more focused in career development-increasing business travels

Loan availability

Higher educational attainment

Growth and development of cities

Discovery of new and virgin islands

Easier ways to book for package tours

Easier ways to book for cheap package tour (promos) and inexpensive transportation

Modern transportation due to technological and engineering advancements

Advances in communication

People are becoming more family-oriented

Shift in values
Economic Impact of Tourism and Hospitality

The tourism and hospitality industry’s economic impact provides; increase in the gross domestic
product of the country by increasing tourist arrivals the tourism revenues increase as well,
generation of employment, foreign exchange and creation of economic opportunity and even
poverty reduction.

The Overseas Development Institute (ODI) World Bank identified 3 main pathways of how the
tourism and hospitality industry impacts the economy of a country:

Direct effects- The wages and earnings of those who participate directly in the sector as workers
or entrepreneurs which directly receives the actual payment or income from tourist expenditures.

Indirect effects- Occur through the tourism value chain.

Dynamic effects- Tourism and hospitality can affect the livelihood strategies of local households,
the business climate for small enterprise development, patterns of growth of the local or national
economy and the infrastructure or natural resource base of the destination.

TOURISM MULTIPLIER

The total direct and indirect effects of an infusion of an external source of income into an area are
termed the "multiplier.”

Multipliers can be generated in terms of sales, income, employment or payroll.

The extent to which businesspeople spend part of their income is termed as the marginal
propensity to consume (MPC)

the extent to which businesspeople will save part of their income is termed as the marginal
propensity to save (MPS).

The more self-sufficient the community, the less will be the imports and the more the MPC.

Everything is connected. Money that is earned flows from one person to another, and most of it
gets spent again -not just once

“Leakage," is the value of goods and services that must be imported to service the needs of
tourism and hospitality.
THE FORMULA FOR TOURISM MULTIPLIER IS

K=y/E

Where:

K is the multiplier

y is the change in income generated by E

E is the change in expenditure which is also the initial sum of money spent by tourist.

Undesirable Aspects of Tourism

Even considered to be one of the world's largest industries in the world and gives many benefits
and advantages.

The tourism and hospitality industry still have some potential undesirable effects and aspects such
as:

Negative Environmental Effects of Tourism and Hospitality

In today’s society we can see some negative impacts of tourism and hospitality industry in
the environment.

Tourism can often cause environmental damage with risks like erosion, pollution, the loss
of natural habitats, and forest fires.

Negative Economic Effects of Tourism and Hospitality (Economic Instability)

Foreign Poaching- just like in the Philippines most of the tourism and hospitality
companies are owned by big foreign companies.

Tourism Dependence- Local owners of businesses depend only in tourism and hospitality
industry as the main source of income neglecting other ways

Negative Social Effects of Tourism and Hospitality

While tourism can help preserve cultures, it can also be the cause of its trailing down due
to commercialization and the effect of what we call “Crab-mentality.”

Economic Strategies

The main objectives of these strategies are to: brand and campaign development of
tourism and hospitality businesses, marketing Of local assets and make collaborations to maximize
economic impact.
 Foreign Exchange. Tourism and hospitality is not only the world's leading service sector
but also considered to be an important foreign exchange earner around the world and the largest
export industry.

Import Substitution. Import substitution is usually used by developing countries or

emerging-market nations that seek to decrease their dependence on developed countries.

Economic Development Incentives. An incentive is an object, item of value, or desired

action or event that encourages the influx of capital, both local and foreign, necessary to develop
tourism and hospital supply.

Some forms of incentives include: Tax holidays and Government subsidies.