2. Chapter 1 The World of Hospitality

3. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

4. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. Objectives Describe the ways in which chains differ from franchises. Explain the purpose of professional organizations and career and technical student organizations.

5. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

6. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

7. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. Industry Complexity The hospitality industry has five segments: –food –lodging –travel –tourism –recreation ©Sean Pavone Photo/Shutterstock.com

8. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. The Foodservice Industry 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

9. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. The Lodging Industry The lodging industry consists of businesses that provide overnight accommodations Lodging includes a wide range of prices and levels of service

10. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

11. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

12. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

13. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. A Customer Focus All segments of the industry must meet customer needs All hospitality workers contribute to a customer’s overall experience

14. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. Business Categories A single-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

15. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

16. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

17. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

18. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. Activities of Professional Associations Professional development Standards and ethics Networking Public relations Government relations

19. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

20. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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

21. Permission granted to reproduce for educational use only.© Goodheart-Willcox Co., Inc. 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