1. 2.01-Understand the impact of the hospitality and tourism destinations on an economy.
Ms. Osteen

2. Economic Conditions
Many hospitality businesses rise and fall with the economy.
During a recession or contraction, when the economy slows down, the hospitality industry is one of the first to suffer.
During an expansion, the economy grows and does well, but hospitality is one of the last industries to benefit.

3. Economic Conditions
Economic conditions greatly influence the demand in the travel and tourism industry.
Travel and Tourism goes through economic highs and lows-goes through cycles.
When visitors visit hospitality and tourism businesses the local economy thrives.

4. Economic Conditions Recession-Spending on necessities vs. wants.
Examples: Not going to restaurants, attractions and no spending money for vacations. (off-season = higher unemployment)
Peak Stage-More $$ to spend on luxurious/desirable items.
Examples: Vacations, visiting restaurants or other attractions.

5. Economic Multiplier
Economic multiplier – an effect in economics in which an increase in spending produces an increase in national income and consumption greater than the initial amount spent.
Tourism not only creates jobs it also encourages growth in a specific industry. This is known as the multiplier effect which in its simplest form is how many times money spent by a tourist circulates through a country's economy.
Example: Tourist spend money at local attractions-employees at the attraction earn money and spend their income on local restaurants and stores.

6. Supply and Demand
Supply - The total amount of a product (good or service) available for purchase at any specified price.
Demand - Desire for certain good or service supported by the capacity to purchase it.
Example: A band touring in Charlotte will bring the demand for hotel rooms within the city.  

7. Globalization
Globalization- process in which the economies of different nations becomes interrelated.
Travel among different countries strengthens national economies.
Attracting tourist improve infrastructure.
Increase in travel and tourism increases more employee opportunities.

8. Economic problems in one country can affect others around the world.
Globalization
Economic problems in one country can affect others around the world.
Transnational corporations have offices in countries around the world.
Tourism facilities are being developed nationally and internationally.

9. Transnational corporation
Transnational corporation – corporation that has major operations in several countries.
Example: Major hotel chain has 710 hotels in 64 countries.

10. Trends for the Future Four trends affecting businesses are:
demographic trends
social trends
lifestyle trends
technology trends
Hospitality professionals stay informed about trends so that they can better serve their customers’ needs and wants.

11. Demographic Trends
Demographics is the study of a population’s characteristics, such as age, income, or ethnic origin
Two demographic trends that affect the hospitality industry:
more retirees
more young people traveling in small groups

12. A social trend is a change in the structure or beliefs of a society
Social Trends
A social trend is a change in the structure or beliefs of a society
Two social trends that affect the hospitality industry:
changes in family structure
acceptance of gaming

13. A lifestyle trend is a change in the way people live their lives
Lifestyle Trends
A lifestyle trend is a change in the way people live their lives
Three lifestyle trends that affect the hospitality industry:
concern for health
impulse buying
desire to learn and have new experiences

14. Two technology trends that affect the hospitality industry:
customers’ use of the Internet and mobile computing to obtain information and make reservations
businesses’ use of software to manage information about guests, employees, and finances

15. Tourism helps build infrastructure.
Tourists add money to a TDA by buying lodging, food, and other goods and services
Tourists benefit their home economy by buying transportation and other goods and services

16. National Tourism Marketing
National tourism offices work to attract international tourists to their country.
The amount of money spent in a destination is influenced by the location of the travelers’ country of origin.
The U.S. Travel Association (USTA) promotes travel to and within the United States with marketing campaigns such as Brand USA.

17. Inbound/Outbound Inbound
Arriving (such as passengers), or coming in (such as a flow).
Return leg of a journey
Outbound
Leaving (such as passengers), or going out (such as a flow).
Departing leg of a journey

18. Staying only a short time, not permanently
Transient
Staying only a short time, not permanently
Guest at a hotel are “transient”