1. Welcome to Hospitality
Chapter 1

2. Globally: One of the fastest growing industries in the world!
Dynamic: Fast paced, exciting, every day is different!
Hospitality

3. Hospitality: The BIG Picture
Hospitality enterprises are part of the service industry
The hospitality product is intangible
Example: employee / guest interaction; such as at a hotel front desk or in a restaurant
Differs from traditional manufacturing industries that produce goods
The manufacturing product is tangible
Example: a pair of jeans

4. “The Moment of Truth” A term used in the service industry
Refers to any time the guest comes in contact with anything or anyone that represents the operation
It cannot be taken back, or done over again
The service experience has been created!
For better or worse!

5. Hospitality: The BIG Picture
Businesses in the hospitality industry are generally service organizations that offer:
Food
Beverages
Lodging
Entertainment
And a whole lot more!

6. Hospitality = “People” business
Taking good care of the guest is the single most critical element for success!

7. The Economy Made up of 3 separate parts Agriculture Manufacturing
Service

8. Shifts in the Economy over Time
The shift of dominance from agriculture and manufacturing to service has required people to acquire different skills

9. Today’s Economy In today’s economy, the service industries dominate…
There is no tangible product
The product is mostly service
The quality of that product (the service experience) rests in the mind of the guest

10. In today’s service economy…
The skills needed are more interpersonal and intellectual than in the past
For many, this has been quite a change and a difficult transition

11. Hospitality industry segments
Largest segments:
Lodging
Food Service
Smaller segments, yet thriving
Recreation
Entertainment
Travel
Many more…

12. Lodging Many different types of lodging
Resorts
Inns
Economy motel
Bed and Breakfast
Mega hotel
Exclusive converted castle
And plenty of other variations!
Common bond: All have sleeping rooms

13. Lodging $ vs. Food $ The profitability percentage (%) of
a sold guest room
is usually higher than from
selling a meal

14. Basic Strategy of Lodging Business
Goal: Sell rooms
Marketing challenge: Bring people to the property to buy rooms
Once there, the guest will judge and determine what he/she believes
The guest, not management, determines perceived Quality and Value

15. Guest Rooms A guest room is a perishable product
If not sold on any one night…that revenue is lost forever
Managements Challenge: knowing how to sell that room based on customers’ expectation and their perception of value

16. Food Service
This part of the hospitality industry is growing at a dramatic rate
Growth primarily resulting from lifestyle changes among society
More families are eating out instead of home
Changing demographic profile of families
To meet economic needs—more adults are working, and working longer hours
Inadequate time to prepare meals

17. Food Service
The business is also growing because it caters to many types of consumers’ specific needs…
Hunger—yes!
Other reasons:
Getting together with friends
Special occasions
Impressing someone special

18. Ambiance or Servicescape
Is made up of the:
Décor
Sound level
Lighting
Furniture
Symphony of dining sounds
the diner’s conversation and laughter
the clanking of dishes and silverware

19. Restaurants are…
Incredibly varied in menu options, atmosphere, pricing, time needed for meal, & more

20. Many aspects of Food Service
Restaurants
Fine Dining
Casual
Fast food
Fast Casual
Private Clubs
Special Events & Catering
Non-commercial

21. Non-commercial Food Service Industry includes…
Schools (elementary, secondary, college)
Hospitals
Prisons
Corporate Office Buildings

22. Branding
Is the process of taking a known brand (like McDonald’s) and opening that facility in a business, hospital, or a school
This trend brings to the operation
name recognition
appeal
standards of operation for that brand

23. Fast Food or Quick Service
Largest segment of the food service industry
Convenience
eat in the car, at work, or at home
it’s quick
it’s easy
Brands keep adding to their menus
but the eating public still prefers to order hamburgers, fried chicken, and pizza

24. Bottom Line
The Hospitality Industry is about managing the “Moments of Truth” occurring throughout the business operation
Ideally, if the “Moments of Truth” are positive they become Happy Memories for the guests
Guests tell friends and family about happy memories which in turn creates the desire in others to experience the same – and – ultimately they become future guests of that business!

25. Opportunities are Abundant in the Hospitality Industry!
Lodging, Food Service, Tourism & More
…just start reading and see for yourself!