INTRODUCTION TO THE HOSPITALITY

AND TOURISM INDUSTRY

The Nature of the Hospitality Industry
What is the meaning of HOSPITALITY?
• Hospitality is derived from the Latin word “hospitare” meaning to receive as a guest,
and “hospes” meaning guest, visitor or one who provides lodging.
• There is no one single and simple definition to explain the term of hospitality in this
stage. Many people have tried to describe the hospitality industry in different ways.
• Some tried to summarize the scope of the industry and its characteristics of involving
both tangible and intangible features in the service delivery process. Others attempted
to describe the industry by exploring the stakeholders involved, mutual benefits
generated and the industry’s impacts to the society and economy.
What is the meaning of HOSPITALITY?
• 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.
• A contemporary explanation of Hospitality refers to the relationship process between
a customer and a host.
• When we talk about the “Hospitality Industry”, we are referring to the companies or
organizations, which provide food and/or drink and/or accommodation to people who
are “away from home”. However, this definition of the “Hospitality Industry” only
satisfies most situations.
“The reception and entertainment of guests, visitors, or strangers with
liberality and good will”.

Liberality: means generosity and broad-mindedness

Good will: means willingness to help others
What is the meaning of TOURISM?
• There are various definitions have been set forth to describe the most
dynamic industry in the world today.
• The word tourism is derived from the word ‘Torah’ which means study or
search or tour.
• In Indian context the sanskrit word Paryatan describes tourism as leaving
one place to travel for the purpose of rest and for gaining of knowledge.
• Based on the UNWTO definition, tourism is defined as the activities of
persons traveling to and staying in places outside their usual environment
for not more than one year for leisure, business, and other purposes.
 “MAKE THE GUEST FEEL WELCOME”

This requires both a friendly manner on your part toward

the guest and an atmosphere of liberality and good will
among the people who work with you in serving guest.
That often translates to an organization in which workers
get along with one another.
CHARACTERISTICS OF THE HOSPITALITY INDUSTRY
Scope of Hospitality and Tourism Industry
 DEADLY SINS OF SERVICE
Here are the “sins” to avoid, according to Schmidt:
1. Apathy
2. The Brush-off.
3. Coldness.
4. Condescension.
5. Robotism.
6. Rule books.
7. Runaround.
PRODUCT VARIABLES
REASONS BEHIND INCONSISTENCY IN SERVICE:
• Education System
• Little priority on training in service
• Over-reliance on technology
• Lack of motivation
• Pandemic/Health Crisis
 THE TOURISM SYSTEM
What – corresponds to the term “activities” in the
tourism definition. This deals with actions, events,
undertakings or experiences of visitors when they travel
to a certain
destination or when they go on vacation. These
activities may vary from simple sightseeing, beach
holiday, trekking, and horseback riding to strenuous
adventures
such as mountain climbing, spelunking (caving), scuba
diving, bungee jumping, etc. Basically, tourism is an
industry that involves actions done by tourists.
 THE TOURISM SYSTEM
Who – pertains to the word “person/s.” It identifies
the doer of the action. When we
speak of tourism, we refer to travelers, tourists, or
people who undertake the activities. The subject is
neither, goods, materials, nor products. The doers of
the action are people who engaged in traveling – the
tourists or travelers. The first word of the definition
being an action word (verb) tells us that tourism is
not a commodity that can be bought and consumed.
Persons are either to undertake this activity or
experience it.
 THE TOURISM SYSTEM
Where – this deal with the phrase “places outside their usual
environment.” This part of the definition identifies the
destination of the traveler. This sets the area other than the
“usual environment” where a person must go in order for
him/her to be a visitor. “Usual environment” means an area
that is familiar or frequented by the traveler. It may be school,
office, an abode, a company, or any place a person routinely
goes to in line with his/her employment, study, business, or
livelihood.
When – the phrase “for not more than one year” corresponds
to the time element. The definition sets a time limit for
people engaged in tourism. These travelers must stay for a
maximum of one year in the place visited. Otherwise, if the
traveler exceeds the maximum length of stay, he/she may no
longer be considered a
 THE TOURISM SYSTEM

Why – the purpose of travel is specifically indicated by

the phrase “for leisure, business, and other purposes.”
The definition states the criteria for an activity to be
classified under tourism. Reasons beyond what was
included in the definition will be categorized as other
forms of travel.
How – traveling to and staying – the definition
requires that a person must spend time in the area
visited for him/her to be considered as part of
tourism.
 TYPES OF TRAVELERS (based on the definitions
of UNWTO)
• An international visitor is a person who travels to a country other than
in which he/she has his/her usual residence for not more than one year,
and whose main purpose of visit is other than the exercise of an activity
remunerated from within the country visited based.

• A domestic visitor is any person who, regardless of nationality, is a

resident of a country and who travels to a place in the same country for
not more than one year and whose
DEFINITION OF FREQUENTLY USED TOURISM TERMS:
Center of economic interest Same-Day Visitor
Domestic Tourism Tour
Group Tour Tour Guide
Guided Tour Tour Operator
Inbound Tourism Tourist
Outbound Tourism Travel agency
Package Tour Usual Environment
Resident Visitor
 IMPORTANCE OF TOURISM
• Contribution to the balance of payments – Tourism can help correct
the balance of payments deficit of many countries by earning the
much-needed foreign currency in international trade.
• Dispersion of development – International tourism is the best means
to spread wealth among countries thus, bridging the economic gap
between the rich and poor nations.
• Effect on general economic development – Expenditures by tourists
can have beneficial effects on all economic sectors and lead to the
development of different industries and other economic activities.
• Employment opportunities – Tourism is a source of employment.
 IMPORTANCE OF TOURISM
• Social benefits – Social exchange takes place when tourists meet the inhabitants
of the places they visit.
• Cultural enrichment – Tourism emphasizes a sharing and appreciation of cultures
rather than the lack of trust brought about by isolation. Through tourism we can
appreciate the rich human and cultural diversity that the world offers; evolve a
mutual trust and respect for one another and the dignity of life on earth.
• Educational significance – Tourism enhances one’s education. International
conferences, seminars, study trips help each year enable people of all nations to
exchange ideas, propose solutions to problems and share their concerns.
• A vital force for peace – Tourism, properly designed and developed can help
bridge the psychological and cultural distances that separate people of different
races, colors, religions and stages of social and economic development.
DEFINITION OF FREQUENTLY
USED TOURISM TERMS: 
Center of economic interest - it is said to have a center of
economic interest when there exist some location-
dwelling, place of production or other premises-within
the economic territory on, or from, which it engages, and
intends to continue to engage, in economic activities and
transactions on a significant scale either indefinitely or
over a finite but long period of time. 

Domestic Tourism - Tourism of resident visitors

within the economic territory of the country of
reference. 
 Group Tour – a number of people traveling
together following an itinerary organized by a
private entity such as tour operator or travel
agency or by a government institution. 

Guided Tour – a tour conducted for

tourism purposes by a tour guide. 
Inbound Tourism - Tourism of non-
resident visitors within the economic
territory of the country of reference. 

Outbound Tourism - Tourism of resident

visitors outside the economic territory of
the country of reference. 
Package Tour – refers to a set of products and services offered
to the visitors that is composed of varieties of tourism
characteristic products (such as transport, accommodation,
food services, recreation, etc.). The component of a package
tour might be pre-established, or can result from an "a la
carte" procedure where the visitor decides the combination of
products/services he/she wishes to acquire. This can be
synonymously used with "package travel and/or package
holiday".   

Resident - An institutional unit is resident in a country when it

has a center of economic interest in the economic territory of
that country. 
Same-Day Visitor - Visitor who does not spend
the night in a collective or private
accommodation in the place visited. 

Tour – refers to any arranged journey intended

for purposes of tourism to one or more places
and back to the point of origin. The arranged
journey may not necessarily be pre-paid. 
Tour Guide – pertains to an individual who guides visitors for
a fee, commission, or any form of lawful remuneration or
personnel from a government or private entity who performs
the above function without fee or remuneration.    

Tour Operator – refers to entities engaged in the business of

extending/selling travel services (e.g., arrangements and
bookings for transportation and/or accommodation; handling
and/or conduct of inbound tours) to individuals or groups for
a fee, commission, or any form of compensation. 
                                      Tourist - Visitor who stays one or more nights in the
                                                      place visited. 
                                  

Travel agency – refers to entities qualified to sell tours,

cruises, transportation, hotel accommodations, meals,
transfers, sightseeing and all other elements of travel to
 visitors in a certain geographic area at a certain moment
 in time and within certain conditions.
The agency acts as a broker, bringing the buyer and seller together. They do not
substitute the service-providing unit, but play the role of providing information and access
to the visitor and are the middlemen in the purchase of certain services. 
Usual Environment - Corresponds to the
geographical boundaries within which an individual
displaces himself/herself within his/her regular
routine of life; consist of the direct vicinity of his/her
home and place of work or study and other places
frequently visited. 

Visitor - Any person traveling to a place other than

that of his/her usual environment for less than 12
months and whose main purpose of trip is other
than the exercise of an activity remunerated from
within the place visited. 
Characteristics of the
Tourism Industry
Perishability

One of the most important characteristics of the tourism industry is perishability. Tourism and
travel products and services are consumed as they are produced. Hotel rooms and cable car
seats cannot be stored in order to be sold in the future. You cannot take 'tonight' and sell it
tomorrow if a hotel room is not booked tonight. Unused capacity cannot be sold after the train
has left the station if it is not a time-traveling train.
Inconsistency

The products of the tourism industry are always unique. The same hotel room in the same week with the same
weather can be perceived differently depending on the chef's mood. The customer's experience is always the
most important. Price, nights of stay, and additional services are rational product attributes that can only be
compared to a minor degree. It is difficult to deal with the customer perception of the product (the perceived
quality) because it is heavily influenced by numerous uncontrollable factors such as weather, construction sites,
other customers, and so on. As a result, the product is highly variable and cannot be standardized.
Investment and
immobility

When it comes to hotels and other lodging, there is usually a significant capital lockup in the
assets. Hotels have furniture, restaurants, TV sets, laundry service, pools, saunas, and other
investments that must be repaid.
Not only that, but all of those investments are tied to a single location, which means that
those tourism businesses are heavily reliant on the attractiveness of the region, 
the country, its surroundings, and so on.
People-oriented

The tourism industry is entirely dependent on people. The interaction between the staff and
the customer determines the perceived quality of the product. Unlike tangible products,
where the customer purchases specific features, production quality, durability, and so on,
holiday quality is determined by personal interactions beginning with the information and
booking process and continuing through the stay and the journey home.
Inseparability

The majority of travel-related goods are manufactured, sold, and then consumed all at once.
This is a feature that clearly distinguishes tourism from material goods. When you purchase a
new computer, it is manufactured and shipped before it appears on the retailer's website or in-
store. After purchase, the computer is consumed—that is, used—at your house. Only the tiny
bottles of shampoo and toothpaste can be brought back from the hotel. 
Products for tourism can only be used on the supplier's property.
Intangibility

The products of tourism are intangible. Nothing compares to a hotel stay, a day at a ski resort, a smooth trip with
a kind flight attendant, and a kind tour guide who takes you to the top of an alpine mountain. The time and
experiences that are had are what matter most in travel. Both reproduction and reuse are not permitted for the
goods that tourism businesses sell. Additionally, it is impossible to fully depict the emotion of consumption. With
cameras, both photographic and video, there are only attempts. Everyone has probably experienced the situation
where they showed their relatives or friends their vacation photos and commented, "Well, that looked nicer
while I was there. The feeling cannot really be captured in a picture)...
Inflexibility

In terms of fluctuation, travel products are rigid and inflexible. Hotels' capacity cannot be
changed quickly enough to respond to spontaneous fluctuations in demand. As a result, such
businesses attempt to strike a balance between high and low demand.
Imitability

Tourism companies' offers and products are generally easy to imitate. When the neighboring
hotel adds a masseur to its SPA offering, all you need is someone with a firm grip and you're
good to go. So, how can hotels create a distinct selling proposition? Originality, consistency,
location, and so on - but not by hoping that their services will not be copied.
These are all important characteristics to consider when conducting marketing activities. 
IMPORTANCE OF TOURISM  
Contribution to the balance of payments – Tourism can help correct the balance of payments
deficit of many countries by earning the much needed foreign currency in international trade.   

Dispersion of development – International tourism is the best means to spread wealth among
countries thus, bridging the economic gap between the rich and poor nations.   

Effect on general economic development – Expenditures by tourists can have beneficial effects on
all economic sectors and lead to the development of different industries and other economic
activities.  

Employment opportunities – Tourism is a source of employment.   

Social benefits – Social exchange takes place when tourists come in contact

with the inhabitants of the places they visit.    
Cultural enrichment – Tourism emphasizes a sharing and appreciation of cultures rather than
the lack of trust brought about by isolation.  Through tourism we can appreciate the rich
human and cultural diversity that the world offers; evolve a mutual trust and respect for one
another and the dignity of life on earth.   ​
​
Educational significance – Tourism enhances one’s education.  International
conferences, seminars, study trips help each year enable people of all nations to exchange
ideas, propose solutions to problems and share their concerns.   ​
​
A vital force for peace – Tourism, properly designed and developed can help bridge
the psychological and cultural distances that separate people of different races, colors, religions
and stages of social and economic development. 
ELEMENTS OF TOURISM:  
The four basic components of tourism, namely:

• Attractions

• Lodging

• Transportation

• Food and beverage

In addition to these four basic components, there are certain elements, which are also crucial to
tourism.  These include:  Fine weather, Historical and cultural factors, Accessibility, Amenities  

Facilities are a necessary aid to the tourist center.  

Amenities can be of two types: natural, e.g., beaches,
sea-bathing, possibilities of fishing, opportunities for
climbing, trekking, viewing, and manmade, e.g., various 
types of entertainmentsand facilities which
cater to the special needs of the tourist. 
Explain the relationship of tourism and hospitality.
The tourism industry benefits the hospitality industry, and the hospitality industry relies on it for
better service. The hospitality industry primarily controls important services; they are the
suppliers of tourism-related services such as lodging, transportation, leisure activities, food and
beverage that make tourism enjoyable. The tourism industry is the act of traveling to various
locations for the purpose of engaging in leisure activities. While tourists enjoy activities, the
hospitality industry complements tourism by providing security. Although it is obvious that the
tourism sector relies on the hospitality sector for both domestic and international tourism, the
tourism industry arranges harmony for tourists when traveling, which is why they work well
together.