Hospitality and Tourism Chapter 1

Products = Goods and Services Goods are tangible (can feel, smell, etc.) Goods are tangible (can feel, smell, etc.) Examples: Soft drink, t-shirt, food Examples: Soft drink, t-shirt, food Services are intangible (not touch, smell, etc.) Examples: Wake-up call, concierge

Which is more important to hospitality and travel????? A good?????? A good?????? A service???? A service????

Product Variables Perishability – probability of product ceasing to exist or becoming unusable in a certain period of time Perishability – probability of product ceasing to exist or becoming unusable in a certain period of time Empty Hotel rooms (lost income) Empty Hotel rooms (lost income)

Intangibility Things that cannot be touched Things that cannot be touched –Goods and services that related to memories/experiences –Brochures/Web sites to see what looks like (cannot sample prior to arrival)

Changeability Opinion of guest is subject to being changed or altered. Opinion of guest is subject to being changed or altered. –Example: Guest at a hotel being disturbed by someone in the next room (opinion of hotel will be changed possibly)

***The Importance of Hospitality and Tourism*** Employees more than 8 million people Employees more than 8 million people Generates 525+ billion dollars in sales Generates 525+ billion dollars in sales Third largest retail industry behind automotive and food stores Third largest retail industry behind automotive and food stores One out of every 7 Americans employed directly or indirectly One out of every 7 Americans employed directly or indirectly

Importance of hospitality and tourism to Pulaski County????? Pulaski County????? Our Country?????? Our Country??????

The Hospitality industry Lodging – hotels, motels, inns, and bed and breakfasts Lodging – hotels, motels, inns, and bed and breakfasts Local Examples???? Local Examples???? Food-service Management – casinos, restaurants, catering companies, hospitals, schools, etc. Food-service Management – casinos, restaurants, catering companies, hospitals, schools, etc. Local Examples???? Local Examples????

Tourism Businesses Travel/Transportation vendors: air, rail, auto, cruise, and motor-coach travel Travel/Transportation vendors: air, rail, auto, cruise, and motor-coach travel Tourism offices, chamber of commerce, etc. distribute information to travelers Tourism offices, chamber of commerce, etc. distribute information to travelers

The Tourism Industry Local Examples???? Local Examples????

Other Businesses Recreational facilities Recreational facilities Meeting-Planning services Meeting-Planning services Sports and Entertainment Industries Sports and Entertainment Industries

Technology Trends Websites – be utilized to entice customers to purchase products and services Websites – be utilized to entice customers to purchase products and services –Booking reservations –May get discounts if book on Internet (saves company money – don’t have to pay as many employees)

Internet Access Access to Internet in hotel rooms and lobbies Access to Internet in hotel rooms and lobbies Restaurants – Internet access Restaurants – Internet access Airports/Airplanes – Internet access Airports/Airplanes – Internet access

Information management Networks – have access to guest information (create profiles) Networks – have access to guest information (create profiles) –Helps predict sales –Planning promotions –Developing better guest relations –Planning menus

Guest Services Wake-up calls Wake-up calls Video check-in and check-out Video check-in and check-out Computerized heating and cooling Computerized heating and cooling Computerized lighting Computerized lighting

Trends in hospitality and tourism Safety – food service sanitation Safety – food service sanitation –Increased security at hotels (keyless electronic locks) –Women only floors –Cruises have passport control and photo IDs –Stricter entrance procedures at stadiums, airlines, etc.

Other trends Diversity – more women and minorities working in hospitality and travel Diversity – more women and minorities working in hospitality and travel Managers/employees – will need to be able to work with people of different cultures Managers/employees – will need to be able to work with people of different cultures

Other trends Ecology – increased awareness of protecting the environment Ecology – increased awareness of protecting the environment –Recycling –Using environmentally friendly products –Reuse towels

Markets Certain markets are growing (Baby Boomers) Certain markets are growing (Baby Boomers) –Spas are growing (seeking wellness and decrease stress) –More states are legalizing gambling (increase in casino properties) –Time sharing (worldwide vacation ownership)

Convenience Emphasis on value of time and money Emphasis on value of time and money –Products and services must be convenient and easily accessible –Extensive take-out offerings –24 hour locations –Casual atmospheres –Convenient checkin/checkout