Overview of Hospitality Industry
Transcript Overview of Hospitality Industry
Hospitality is the cordial and generous
reception and entertainment of guests or
strangers, either socially or commercially.
The Hospitality Industry is comprised of
those businesses which practice the act of
being hospitable; those businesses which
are characterized by generosity and
friendliness to guests.
I. Overview of Hospitality Industry
A. Characteristics of Hospitality Industry
B. Components of Hospitality Industry
1. Lodging Operations
-such as hotels, resorts, motels etc.
2. Transportation Services
-such as taxi, train, cruise ships, etc.
3. Food and Beverage Operations
-such as restaurants, bars, etc.
4. Retail Stores
-such as souvenir shops, etc.
-such as recreations, festivals, etc.
C. Classification of Hotels
According to Size:
a. Small Scale (under 150 rooms)
b. Medium Scale (150 to 299 rooms)
c. Large Scale (300 and above)
2. According to Target Market:
Bed and Breakfast Hotels
Time-Share and Condominium
Alternative Lodging Properties
3. According to Levels of Service
a. World-Class Service
b. Medium-Range Service
c. Economy / Limited Service
4. According to Type of Ownership and
b. Chain Hotels
- Management Contract
5. Reasons for Traveling
a. Business Travel
b. Pleasure Travel
c. Group Travel
d. Buying Influences
6. According to Quality Ranking
7. According to Location
a. Center City
D. Hotel Organization
Defines the unique purpose that sets one hotel or hotel company apart from
others. It expresses the underlying philosophy that gives meaning and direction to
hotel policies. A hotel’s mission statement should address the interests of three
diverse groups: guests, management, and employees.
Are those ends an organization must achieve to effectively carry out its
mission. An objective is more specific than a mission; it calls for levels of
achievement which can be observed and measured.
Define the purpose of a department or division; they direct the actions of
managers and employees and the functions of the department or division towards fulfilling
the hotel’s mission.
Are the methods a department or division plans to use to achieve its goals.
A schematic representation of the relationships between positions within the
organization. It shows where each position fits in the overall organization as well as where
divisions of responsibility and lines of authority lie. Solid lines on the chart indicate directline accountability. Dotted lines indicate relationships that involve a high degree of
cooperation and communication, but not direct reporting relationship.
E. Classification of Functional Areas:
Revenue vs. Support Centers
Revenue Centers - those that sells goods or services to guests,
thereby generating revenue for the hotel (front office, food and
beverage outlets, room service and retail stores).
Support Centers - these do not generate direct revenue, but provide
important backing for the hotel’s revenue centers (housekeeping,
accounting, engineering and maintenance, and human resources
Front-of-the-house vs. Back-of-the-house
Front-of-the-house - areas that involves guest and employee
interaction (front office, restaurants, and lounges).
Back-of-the-house - areas where interaction between guests
and employees is less common (housekeeping, engineering
and maintenance, accounting, and human resources).
F. Hotel Divisions:
Food and Beverage Division
Sales and Marketing Division
Engineering and Maintenance
Human Resource Division