Develop and Update Hospitality Industry Knowledge

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Develop and Update Hospitality Industry Knowledge
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The Hospitality Sector

• Commercial Establishments
• Defined as PROFIT SEEKING establishments.
• They charge customers for the services and/or
  facilities they provide.
• Examples

• Non-Commercial Establishments
• Do not seek to make a profit.
• They operate to support communities or fulfill a
  community need.
• Often government funded.
• Examples

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Key Operational Differences

• Income How is operational funding received?
  Commercial establishments are funded through
  sales and revenue. Non-commercial establishments
  can receive government funding, business and
  public donations.
• Expenditure What is money spent on to
  successfully operate the establishment? Staffing,
  equipment, materials? It differs for commercial
  and non-commercial establishments.
• Clientele Who are the target groups using the
  facilities? Guests, patients, members,
  detainees, employees, students, the general
  public?
• Service and Facilities What services and
  facilities are supplied to the target group? Is
  it food, beverages, accommodation, entertainment?
  There is a difference between comfort items and
  essential items for commercial and non-commercial
  establishments.

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Key Departments in A Hospitality Enterprise

• Rooms Division(Front Office
• Housekeeping)
• Food and Beverage
• Food production/ Kitchen
• Banqueting
• Clubs
• Gaming
• Sales and marketing
• Human resources
• Financial control/ accounts
• Security
• Maintenance

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The role of each Department
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Can you match the right jobs with the right
department?

• Front office
• Housekeeping
• Food and Beverage
• Finance / Accounts
• Human Resources
• Kitchen/ Food Production
• Gaming
• Security
• Maintenance

• Waiter / Waitress
• Accounts Receivable Clerk
• Maintenance Officer
• Customer Liaison Officer
• Receptionist
• TAB Attendant
• Turndown Attendant
• Apprentice Chef
• Personnel Officer

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What Department do I work in?

• I provide Counseling for staff.
• I participate in domestic and International Trade
  Shows
• I keep all staff Records
• I receive guests correspondence
• I maintain public areas e.g the lobby

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What Department do I work in?

• I keep all staff Records
• I organize TAB Services
• I paint the building
• I handle troublesome guests or intruders
• I am familiar with the various employment laws

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What Department do I work in?

• I administer First Aid
• I provide Health and Beauty therapy to guests
• I organize Cultural Functions
• I supervise the Staff Canteen
• I arrange Dry Cleaning
• I monitor outgoing expenditure

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Department Interrelationships

• High standards of service and consistency of
  customer service depend on positive departmental
  interrelationships.
• Through these relationships, consistency of
  service can be maintained.

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Department Interrelationships
No department operates in isolation!
Food Beverage
Maintenance
FRONT OFFICE
Housekeeping
Security
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Interrelationship between Departments Examples

• Front office contacts Housekeeping to put a cot
  in the room or Food and Beverage to put a
  highchair in the Restaurant.
• Sales Marketing contact Food and Beverage to
  introduce a sales promotion offering a free
  bottle of wine to every table of 4.
• Housekeeping contact Maintenance to repair a
  leaking tap in a guests bedroom.

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Quality Assurance

• When we are paying someone else for the provision
  of a good or service we expect and should
  receive the same standard on each occasion.
• Quality Assurance is the consistent provision of
  a product or service to a high level. To enable
  this to happen an establishment has to have a
  commitment to the quality process.

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Quality Assurance

• Although standards may vary from establishment to
  establishment setting a standard for each
  establishment is a means of ensuring a certain
  standard is consistently available. Fast food
  chains use quality assurance to ensure that
  across the country or even the world customers
  can expect the same product which has been
  prepared and served in a certain way to a
  consistent standard.

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Career Paths in the Hospitality Industry

• There is an extremely wide range of career
  options available within the hospitality
  industry.
• Hospitality / tourism is a growth industry and
  there are diverse opportunities for people who
  are prepared to work hard.
• Traditionally it has been an industry where you
  can start in a front line position, and if you
  have what it takes, work your way up into
  management positions.
• As the industry is becoming increasingly
  professional, training and qualifications are
  becoming essential to obtain fast career
  progression.

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Mapping Career Paths

• Choose one of the following areas, and from your
  knowledge of these departments, see if you can
  map a typical career path that may occur within
  that department

• Front Office
• Sales and Marketing
• Housekeeping
• Human Resources
• Food and Beverage
• Food Production/Kitchen
• Gaming
• Security
• Finance
• Maintenance

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Mapping Career Paths

• Heres an example for the Finance Department

HOTEL INTERCONTINENTAL SYDNEY Sydneys Award
winning 5 star Hotel situated close to Circular
Quay require the services of a suitably
experienced person for the position of Accounts
Receivable Clerk. We are seeking an enthusiastic
person to join our Accounting Team. Duties
involve collecting of monies involving Credit
Cards and Invoicing along with associated
clerical duties. Hotel experience in Accounts
Receivable would be an advantage.
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Mapping Career Paths Beverage
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Mapping Career Paths Food Beverage
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Mapping Career Paths Kitchen
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CareerPathway
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Range of Different sectors in the Industry

• Accommodation
• including hotels , motels, bed and Breakfast,
  hostels, backpackers caravan parks
• Food and Beverage
• including restaurants, cafes, fast food outlets,
  bars and outside caterers
• Meetings and Events
• (Meetings incentives conferences and Exhibitions)
•  

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Range of Different sectors in the Industry

• Gaming
• Entertainment and Recreation
•            Travel and tours/tourism services,
  including transport and travel agents
•            Visitor information services,
  including attractions, retail outlets and Tourism
  Commissions
•  Can you think of some?

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End of Session 1

• Break
• 15 minutes

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Personal Attributes and Work Ethics of
Hospitality Staff

• Punctuality
• Honesty
• Attention to Detail
• Personal Presentation and
• Grooming
• Attitude
• Confidentiality
• Consistency of service

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Ethical Issues impacting on the industry include

• Confidentiality
• Commission procedures
• Pricing
• Gifts and services free of charge
• Tipping
• Overbooking
• Product Recommendations

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Legal Issues impacting on the industry include

• Consumer protection
• Duty of Care
• Equal Employment Opportunity
• Anti- Discrimination
• Workplace relations
• Child sex tourism

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Keeping up to Date

• The hospitality industry is an ever-changing
  industry. Keeping in touch is vital.
• How?
• Product Data Bases
• Media
• Industry Associations
• Industry Journals
• Web sites
• Publications
• Seminars
• Training Courses

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Industrial working conditions
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Industrial Relations
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An Award

• An award is a document
• that legally binds employers
• to provide certain minimum
• conditions for their employees.
• These conditions cover
• Classification of employees
• Ordinary time hours of work, rest periods, notice
  periods and variations to working hours
• Rates of pay

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An Award

• Annual leave and leave
• loading
• Long service leave
• Sick leave and other forms of leave
• Public Holidays
• Penalty rates
• Notice of termination
• Superannuation

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An Enterprise agreement

• These are contracts between the employer and all
  his employees which negotiates different
  conditions from those set out in the award
• An enterprise agreement usually relates to a
  specific business and is designed to meet the
  operations needs.
• It must ensure that the Employees are not
  disadvantaged by not being under the award

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Workplace Agreement

• An individual agreement between an employee and
  his/her employer.
• Each employee within an enterprise may negotiate
  different conditions.

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Award Pros and Cons
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Enterprise Agreement Pros and Cons
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Workchoices ( AWA)Pros and Cons
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What are Trade Unions?

• An organization of employees for mutual aid and
  protection, and for dealing collectively with
  employers.
•  
• Trade unions came into being to protect and
  better wages, hours of work, and conditions of
  employment for its members. As far back as the
  1880s, workers in Australia were combining into
  unions to provide mutual aid in cases of injury
  sickness or death and to seek better wages from
  employers.
• Liquor, Hospitality and Miscellaneous Workers
  Union
•  

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What are the benefits of joining a trade union?

• Assistance and advice on unfair dismissal claims
• Legal advice relating to working conditions and
  non-work-related issues
• Legal representation in the event of a
  work-related dispute
• Discounts on a range of services, such as dental
  care, holidays, tax return preparation, retail
  outlets, financial planning, insurance (check
  your individual state union for specific
  details)
• Assistance with workers compensation claims.

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What are Employer Organisations?

• Associations representing the rights and
  interests of employers within a particular
  industry.
• The role of employer organisations is to
  represent their members in matters that relate to
  industrial relations.
• For example the Business Council of Australia
  forwarding recommendations on behalf of their
  members during the most recent national wage
  case.

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What are Employer Organisations?

• Examples of employer organisations within the
  hospitality industry include
• Australian Hotels Association (AHA)
• Clubs NSW
• Hotel, Motel and Accommodation Association
  (HMAA)
• Restaurant and Caterers Industry Association of
  NSW

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Sources of Information on the Hospitality Industry

• Media
• Reference Books
• Libraries
• Unions
• Industry associations
• Industry Journals
• Internet
• Information Services
• Personal observation and Experience
• Colleagues, supervisors and Managers
• Industry contacts, mentors and advisers

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Factors influencing Hospitality Operations

• These factors are classified as Internal and
  External
• Internal are those that are within the control of
  the organization
• Can you think of some ?
• For example pricing, staffing, marketing and
  choice of menu

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Influences on the Hospitality Industry

• What are some of the more important external
  factors that impact on a Hospitality operation?

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End of Session 2

• Break
• 45 minutes

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Industry Regulations

• Legislative requirements such as licenses to
  serve alcohol and gaming have a big impact on
  hospitality enterprises.
• The requirements of the Food Act and OHS Act all
  have an impact on the way an establishment can
  operate.
• Smoking and Gaming legislation also impact on
  the industry
• The main legislation affecting the industry is

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Legislation

• Hygiene
• The Food Act 2003 ( NSW)
• Covers all aspects of hygiene and food handling,
  also the role of the health inspector
• Environment
• Smoke Free Environment Act 2000
• Illegal to smoke in many public areas including
  restaurants
• Only allowed to smoke in assigned areas in bars
  and clubs

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Legislation

• Health and Safety
• OHS Act 2000 (NSW)
• OHS Regulations 2001 (NSW)
• Ensures all places of work are safe and healthy

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Legislation

• Consumer Protection
• Explain the two acts covering this area?
• Fair Trading Act 1987 (NSW)
• Trade Practices Act 1974 ( Cth)
• Equal Employment Opportunity
• Explain the two acts covering this area?
• EEO Act 1987 ( Cth)
• Equal opportunity for Women in the workplace Act
  1999

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Equal Employment Opportunity EEO Act 1987 (Cth)

• Designed to ensure people are not discriminated
  against on irrelevant characteristics in the work
  place.
• Opportunities for advancement must be granted on
  merit irrespective of gender, race, sexual
  preference, disability or cultural background

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Equal Employment for Women in the Workplace 1999

• What is it?
• Enterprises with more than 100 employees are
  required to improve female work opportunities.

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LegislationAnti- discrimination Act 1977 (NSW)

• Ensures fair and equitable access to services and
  facilities. It prohibits discrimination against
  people regardless of gender, religion,race,
  culture age disability and sexual preference

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Legalisation

• Liquor act 1982 covers Responsible Service of
  Alcohol
• Fair Trading Act 1987
• consumer law, It governs the issue of product
  safety and product information and ensures that
  business do not give misleading information about
  their products and services

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Economic Climate

• Tourism is a luxury item, so when the Australian
  or international climate is healthy people have
  more money to spend on things such as tourism.
• In times of economic recession or turndown
  businesses and individuals are more cautious
  about spending money especially on luxury
  items.
• During these slow periods, individuals may choose
  to downgrade their trip in terms of cheaper
  accommodation, length of stay, destination or
  they may even cancel their trip altogether.
• This has an impact on the revenues and spending
  ability of restaurants, hotels, attractions etc.
• Exchange rates play a big role in encouraging or
  discouraging international travel.

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Seasonal Conditions

• The peak times for travel in and to Australia is
  during the months of September through to April.
• January, March, April and October record
  particularly high levels of travel.
• For the business sector, the least popular times
  for business trips is September, January and
  February.
• Seasonal conditions refer to not only the four
  seasons of the year, but also other events or
  activities such as school holidays, public
  holidays, traditional celebrations such as Easter
  and Christmas.
• There are also many State / city events such as
  the Mardi Gras and Melbourne Cup which attract
  visitors to the area at different times.

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Global issues

• The political climate and general level of safety
  in a country are important factors in consumer
  decision making.
• The threat of terrorism is a very serious
  current issue. A tourist site will not attract
  visitors unless it is part of a safe environment
  .
• Also SARS, bird flu etc have a major impact on
  the Tourism and Hospitality industries.

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Market Needs and Expectations

• Globalization of business leading to more travel
  for business purposes. Increases expectations of
  customers regarding facilities both work and
  relaxation.
• Travel has become more affordable to a wider
  range of people leading to a wide range of
  accommodation styles.
• Rising numbers and diversity of international
  travelers coming to Australia, leading to an
  increase in the need for awareness of cultural
  needs and expectations.Current trend in Australia
  for short breaks rather than one long break
  leading to an increase in the popularity of
  weekend packages.

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Keeping up to Date

• The hospitality industry is an ever-changing
  industry. Keeping in touch is vital.
• How?
• Working in the Industry
• Trade and industry journals
• Membership of Industry Bodies
• Other media reference books

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Issues for the Industry

• Government Issues
• Emerging markets
• Environmental and social issues
• Industry expansion or retraction
• Labour Issues

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Social Impact of Tourism and Hospitality

• The social impact of hospitality and tourism
  refers to the manner in which tourism and travel
  effects changes in collective and individual
  value systems, behavior patterns, community
  structures, lifestyle and quality of life of host
  communities.
• Tourism and Hospitality can bring improvements in
  lifestyle and quality of life but can also cause
  social problems
• A serious social issue for the industry is
  gambling.
• In the 12 months to June 2005 NSW clubs and
  pubs reported a combined turnover of 52.8
  billion from pokie machines.

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Environmental Impact of Tourism and Hospitality

• Tourism and Hospitality are environmentally
  dependent industries. Facilities and
  infrastructure are not enough by themselves to
  attract tourists.
• Tourism relies on both the natural and cultural
  environments of host communities as these provide
  one of the major reasons for visiting an area.
• A problem emerges Tourism needs the environment
  to survive, and in using it so, can impact on it
  in such a way that the tourism opportunity is
  destroyed!

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Factors associated with Hospitality that have a
negative impact on the Environment

• Wasting resources
• Polluters
• Destruction of natural wonders
• Problems of rubbish, Waste Traffic

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Environmental Impact of Tourism and Hospitality
Sectors

• Can you think of some ways we can address the
  negative impact of Hospitality on the
  Environment?

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Ways to address the negative impact of
Hospitality on the Environment

• Solar-heating
• Recycling of waste e. g paper , glass
• Correct disposals of oil fat
• Reusing containers
• Energy Efficient Appliances
• Timers for heating and air conditioning
• Room keys for use of lights
• Regular cleaning and maintenance of heating,
  cooling, laundry cooking for efficient
  pollution-free running

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Relationship with other Industries

• The hospitality industry does not exist in
  isolation.
• It is supported by various other business e.g. a
  local hotel would purchase local produce for Food
  and Beverage
• A tourist site will not attract visitors unless
  it is part of a safe environment and it has
  accessible transport options.
• Can you think of another example?

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HSC Paper 2004

• This question was worth 7 marks
• A)State one Ethical and one legal issue which
  impacts on a Hospitality Establishment
• B) Identify one piece of leglisation and explain
  how it relates to the Hospitality Industry

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HSC Trial Paper 2005

• This question was worth 9 marks
• A)Identify two of the key departments within a
  Hospitality Establishment
• B) Explain the role and function of each of these
  departments and describe the interrelationship
  between them
• C) Outline the career path of a front line
  hospitality Establishment Employee

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Question 21 2005 Paper

• In the Hospitality Industry there are issues of
  concern within the areas of environment,
  employment and International tourist markets
• Identify issues of concern within each of these
  areas, and explain how they are being addressed

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