1 The World of Hospitality

Objectives Explain the importance of the hospitality industry to the economy. Describe the diversity of the hospitality industry. Differentiate among the five segments and give an example of one business in each. Explain why all segments of the hospitality industry should aim to satisfy the customer. continued

Objectives Describe the ways in which chains differ from franchises. Explain the purpose of professional organizations and career and technical student organizations.

The Hospitality Industry Hospitality includes travel and tourism, the world’s largest industry In the United States, the hospitality industry is the second-largest employer Money spent by travelers flows through the economy, affecting many other businesses

Industry Diversity Hospitality businesses provide diverse products and services, including lodging food entertainment transportation The hospitality industry serves diverse customers Hospitality employees are also diverse

Industry Complexity The hospitality industry has five segments: food lodging travel tourism recreation ©Sean Pavone Photo/Shutterstock.com

The Foodservice Industry consists of businesses that prepare food and beverages for customers includes businesses of many sizes, types, and locations is the largest and most varied segment of the hospitality industry

The Lodging Industry The lodging industry consists of businesses that provide overnight accommodations Lodging includes a wide range of prices and levels of service

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

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

The Recreation Industry Recreation is any activity done for rest, relaxation, and enjoyment The recreation industry includes such operations as entertainment spectator and participatory sports attractions

A Customer Focus All segments of the industry must meet customer needs All hospitality workers contribute to a customer’s overall experience

Business Categories A single-unit business A multi-unit business has only one establishment (location) is also called an independent business is not connected to any other business A multi-unit business has two or more establishments may be part of a chain or franchise

Chains A chain is a business that has more than one establishment under the same name and the same ownership A chain’s brand, which distinguishes it from its competitors, may include name logo tagline

Franchises A franchise is the right to set up a business using the brand and products of another business The franchisor owns the chain and brand, while the franchisee buys the right to use the brand All franchises are part of a chain, but not all chains have franchises

Professional Associations A professional association consists of a group of people organized to improve themselves, their profession, and their industry Includes such major associations as the National Restaurant Association (NRA) the American Hotel & Lodging Association (AH&LA) the U.S. Travel Association

Activities of Professional Associations Professional development Standards and ethics Networking Public relations Government relations

Value of Involvement Involvement in a professional organization can provide benefits such as scholarships for students planning to enter the profession help with job searches, professional development, and networking opportunities to develop leadership skills and other abilities

Student Organizations A career and technical student organization (CTSO) is for students interested in a career area, such as hospitality or business A CTSO gives students the opportunity to develop interpersonal skills leadership skills career skills technical skills

Benefits of Belonging to a CTSO Opportunities to meet with professionals in the industry Availability of scholarships A variety of civic, service, social, and fund-raising activities Competitive events at the local, state, and national levels

Chapter 1 Review What is the world’s largest industry? travel and tourism In what three ways is the hospitality industry diverse? It provides diverse products and services, serves diverse customers, and employs diverse workers. continued

Chapter 1 Review Name the five segments of the hospitality industry. food, lodging, travel, tourism, recreation Which segment is the largest and most varied? the food industry continued

Chapter 1 Review What distinguishes a chain from its competitors? its brand Name four types of skills that can be developed by belonging to a CTSO. interpersonal, leadership, career, and technical