Chapter 1 - Goodheart

Chapter

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 © Goodheart-Willcox Co., Inc.

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

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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

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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 © Goodheart-Willcox Co., Inc.

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Industry Complexity • The hospitality industry has five segments: – food – lodging – travel – tourism – recreation

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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

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

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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

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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 © Goodheart-Willcox Co., Inc.

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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

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

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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

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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 © Goodheart-Willcox Co., Inc.

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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 © Goodheart-Willcox Co., Inc.

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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 © Goodheart-Willcox Co., Inc.

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Activities of Professional Associations • • • • •

Professional development Standards and ethics Networking Public relations Government relations

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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

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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 © Goodheart-Willcox Co., Inc.

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Benefits of Belonging to a CTSO • Opportunities to meet with professionals in the industry • Availability of scholarships • A variety of civic, service, social, and fundraising activities • Competitive events at the local, state, and national levels © Goodheart-Willcox Co., Inc.

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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 © Goodheart-Willcox Co., Inc.

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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 © Goodheart-Willcox Co., Inc.

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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

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