Chapter 1

OVERVIEW OF THE HOSPITALITY
INDUSTRY
THE SCOPE OF THE INDUSTRY
╺ Tourism ╺ Sports Management

Management
╺ Club Management
╺ Human Resources
╺ Gaming Sectors
Management
╺ Special Events
Management
Hospitality Industry encompasses a wide range of businesses, each

of which is dedicated to serve people AWAY from HOME
“Receiving guests in a generous and cordial manner”, “creating a
pleasant or sustaining environment”, “satisfying guests needs”
AN AGE OLD INDUSTRY
The first These Kahns provided

overnight structures, the shelter (for both
lodging caravanserai, humans and
structures were were at 8-mile beasts) and
erected along intervals and nothing else
Middle Eastern operated much Provision such
trade and like the present- as food, water
caravan routes day Middle and bedding
over 4,000 yrs Eastern kahns were supplied
ago. by the traveler.
3
Physical conditions were In many countries,
harsh by today’s standard,
the quality of
however, spirit of
hospitality was strong hospitality services
varied according to
“I am never a slave, except - Fees paid &
to my guests” Location of the
establishments
4
TRAVELLER ARE WEALTHY ENOUGH TO
TRAVEL
EASY ROAD ACCESS
AS SOLDIER CONQUERED MORE AREAS

THE ROMAN INFLUENCE CITIZENS COULD VISIT EXOTIC PLACES IN
COMFORT
FINE SERVICE WAS FOUND IN ANCIENT ROME.
BUILT ON ALL MAIN ROADS AND IN THE CITIES. LATIN HAD BECOME THE UNIVERSAL
BETTER ONES HAD RESTAURANT, LAVATORY, LANGUAGE THUS NO COMMUNICATION
BEDROOMS WITH KEYS OR BOLTS, AND ALSO A PROBLEM
YARD AND STABLING
5
FOOD SERVICE
HOSPITALITY AND TOURISM NETWORK TRANSPOPRTATION
INDUSTRY INDUSTRY
COMPONENTS • Airlines
• Catering And • Maritime
Banquets • Ground Transportation
• Food Service And MERCHANDISE Industry
Other Business COMPONENTS
• Restaurant And Cafe • Product Related To Other
• Beverage Components
Establishment
• Instititions
• Clubls
TRAVEL AND TOURISM
INDUSTRY
• Travel Agency Industry
• Tour Operator Industry
HOSPITALITY INDUSTRY
LODGING INDUSTRY COMPONENTS

• Clubs RECREATION SPORTS AND
• Institutions ENTERTAINMENT
• Hotels/Motels COMPONENTS
• Resorts
• Conventions
6 Hotels
WHAT IS HOSPITALITY
INDUSTRY?
It comprises of businesses that serves guests

away from home – can be defined by its
scope, mission, and providers
7
“
MISSION OF HOSPITALITY
╺ “Receiving Guests in a generous and cordial
manner”
╺ Creating a pleasant or sustaining environment”
╺ Satisfying a guest’s needs
╺ Anticipating a guest’s desires
╺ Generating a friendly and safe atmosphere”
8
We are selling Service
Hospitality
1. To welcome, greet, serve and entertain guests.
2. Making guest feel comfortable
3. It is the most important product of the hospitality industry.
Amenities
Features that add material comfort, convenience or smoothness to
social interactions.
9
PRODUCTS OF HOSPITALITY
10
HOSPITALITY INDUSTRY
11
The Nature of the Product
Services are products offered
by hospitality industry to the
customers or guests. Its
Intangible
A service can be defined as an activity, which has

some element of intangibility, associated with, which
involves some interaction with guests/customers or
with property in their possession, & does not result in
a transfer of ownership.
12
SERVICES
╺ Services are something, which
provides satisfaction & enjoyment for
the guest/customer, but service itself is
not a physical thing
╺ Service is both the mission & the product

of the hospitality industry. The main
business is the creation of memorable
experiences through furnishing services
13
SERVICE CHARACTERISTICS
Intangibility
╺ Service cannot be seen, cannot be tested & cannot be evaluated
╺ Since it is an intangible product, not everyone’s perception of it is the same
╺ Guests must experienced them to “know how they work” unlike tangible products. E.g.. Shoes;
the customer can try on merchandise for it fit & size
Heterogeneity (variety) or Variability
╺ Lack of uniformity in the standards
╺ Quality control becomes a major problem for management
Inseparability
╺ Services are typically produced & consumed at the same time, with guests/customers
participation in the process
╺ Meaning, the purchaser (customers/guests) needs to come to the producer (hotel / restaurant /
travel agency) in order to experience that particular service
Perishability
● Service cannot be stored for future sales
14
● E.g.. If the room guest’s empty for the whole day, meaning it’s lost forever
PURPOSE OF HOTEL AND RESTAURANT
To satisfy the physical & psychological

expectations of guests
- These purpose are accomplished through
providing a good product (the meal or the
room) & a good service (delivering the meal
or room appropriately)
15
THE SERVICE ENCOUNTER
1. TIME PERIOD WHEN

CUSTOMER INTERACT
DIRECTLY WITH A SERVICE
2. PERSONAL + PHYSICAL
FACILITIES + OTHER VISIBLE
ELEMENTS
3. SERVICE MUST BE DELIVERED

IN COURTEOUS AND EFFICIENT
MANNER
16
VALUE IS RELATIVE WORTH
GUEST EVALUATE SERVICE BASED

ON OWN OVERALL EXPERIENCE
PERCEPTION OF VALUES AND

EXPECTATION
BETTER SERVICE = HIGH PRICE
GOOD SERVICE + AMENITIES + PERSONAL

ATTENTION + SPEED
SERVICE, SERVICE QUALITY IS ALWAYS DEFINED

BY GUEST EXPECTATION AND ORGANIZATION
IMAGE
17 ISSUES ARISING FROM PRODUCT DELIVERY

Guest measure the quality of service
by comparing the services received
with what they expected to receive,
given the type of establishments offering
the service
18
PRICE VALUE
5 DIMENSION OF RELIABILITY
SERVICE
RESPONSIVENESS
ASSURANCE
EMPATHY
19
EMPLOYEE VS GUEST INTERACTION
EMPLOYEE RESPONSE UNPROMPTED &

TO NEEDS AND UNSOLICITED
EMPLOYEE RESPONSE TO
REQUESTS EMPLOYEE ACTION
SERVICE DELIVERY
1. EMERGENCY 1. THE AMOUNT OF
FAILURE
SITUATION ATTENTION
1. SLOW SERVICE AND
2. MEDICAL\ ● EXTRA TIME
CUSTOMER
LANGUAGE ● PROVIDING
PERCEPTION
DIFFICULTIES ADDITIONAL
2. IMMEDIATE
3. CUSTOMER INFORMATION
CORRECTIVE ACTION
PREFERENCE ● SHOWING
3. MONETARY RETURN
4. CUSTOMER INTEREST
4. COMPENSATION
ERROR
5. DON’T MAKE TWO
5. CUSTOMER
WRONG
DISRUPTIVE
BEHAVIOR
20
EMPLOYEE AND GUEST INTERACTIONS SATISFACTION OR
DISSATISFACTION (FITZSIMMONS)
21
PRINCIPLES FOR ACHIEVING GUEST SATISFACTION (BASED ON
KNUTSON PROPOSAL)
RECOGNIZE YOUR GUEST (USE PUT THE CUSTOMER IN YOUR
NAME IF POSSIBLE) DEBT
MAKE A POSITIVE FIRST EXPECT YOUR CUSTOMER TO

IMPRESSION - INITIAL GREETING REMEMBER BAD EXPERIENCE
& WARM WELCOME
FULFILL YOUR GUEST’S CREATE GOOD MEMORIES THE

EXPECTATIONS CUSTOMER WANT TO RECAPTURE
REDUCE THE EFFORT AVOID VIOLATING CUSTOMER

REQUIRED OF CUSTOMER TO UNSPOKEN TIME LIMITS
PURCHASE YOUR SERVICE
FACILITATE CUSTOMER FOCUS ON CUSTOMER

DECISION MAKING PERCEPTION AND EXPECTATIONS
22
23
CAREERS IN THE HOSPITALITY
INDUSTRY
24
25
THE HYATT EXPERIENCE
26
THANK YOU
THE END

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OVERVIEW OF THE HOSPITALITY

╺ Tourism ╺ Sports Management

Hospitality Industry encompasses a wide range of businesses, each

The first These Kahns provided

AS SOLDIER CONQUERED MORE AREAS

LODGING INDUSTRY COMPONENTS

It comprises of businesses that serves guests

A service can be defined as an activity, which has

╺ Service is both the mission & the product

To satisfy the physical & psychological

1. TIME PERIOD WHEN

3. SERVICE MUST BE DELIVERED

GUEST EVALUATE SERVICE BASED

PERCEPTION OF VALUES AND

BETTER SERVICE = HIGH PRICE

GOOD SERVICE + AMENITIES + PERSONAL

SERVICE, SERVICE QUALITY IS ALWAYS DEFINED

17 ISSUES ARISING FROM PRODUCT DELIVERY

EMPLOYEE RESPONSE UNPROMPTED &

MAKE A POSITIVE FIRST EXPECT YOUR CUSTOMER TO

FULFILL YOUR GUEST’S CREATE GOOD MEMORIES THE

REDUCE THE EFFORT AVOID VIOLATING CUSTOMER

FACILITATE CUSTOMER FOCUS ON CUSTOMER

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