Hospitality Industry

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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.

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A. Characteristics of Hospitality Industry

• Inseparability
• Perishability
• Labor-intensive
• Repetitive
• Intangibility

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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.
• 5. Activities -such as recreations, festivals,
  etc.

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A Brief History on the Development of Lodging
Industry
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Historical Perspectives

• Being hospitable can be traced back to the
  civilizations of Sumeria, Ancient Egypt, Ancient
  Greece, Rome and Biblical Times.

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• Two possible explanations why people in ancient
  times felt required to be hospitable
• They felt that providing hospitality to strangers
  were necessary to their religious well-being and
• Having superstitious belief.

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• The more logical in our modern thinking explains
  that providing hospitality was a result of a
• give and take philosophy.

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• The need for a place to stay away from home is as
  old as the first nomadic traveler.

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• Trading between two cultures created the need for
  groups of people to travel often great distances.

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• Trading between two cultures created the need for
  groups of people to travel often great distances.

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• Along these trade routes, certain stopping points
  became favored out of necessity.
• These stopping points became known as junction
  points that grew into trading centers and
  eventually evolved into cities.

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• Journey segment is the maximum reasonable
  distance traveled in one day along trade and
  caravan routes.
• At these journey segments, lodging facilities
  became a need. They were called relay houses in
  China, khans in Persia, and tabernas in Rome.

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• At some point, innkeepers began to incorporate
  food and beverage service in their operations.

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• Another development was the Roman network of
  roads that crisscrossed Europe and parts of Asia
  and Africa. These roads provided fast and safe
  routes for travelers.

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• The concept of hospitality was changed in 1282 in
  Florence, Italy. The innkeepers created a guild
  or associations that formed hospitality into
  business.

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• The industrial revolution of the mid-1700s
  created new modes of transportation that further
  changed the way people traveled.
• The emergence of railroads and later the
  automobile played large roles in lodgings
  history because both dramatically increased the
  lengths of journey segments for a traveler.

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• As the evolution of lodging continued, new
  facilities began to emerge as an option for
  travelers.
• The wealthy and landed aristocracy of the world
  began to view the many spare rooms in their
  castles and estates as sources of revenue.

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• The best example of this can be traced back to
  the English and colonial inns of the 1700s.
• The significant difference between the two was
  that colonial inns offered rooms to anyone who
  could afford to pay, whereas English inns were
  most often reserved for the aristocracy.
• Another difference between the two was that
  English inns rented out individual sleeping
  rooms, whereas colonial inns regularly offered
  large rooms with several beds inside. This meant
  that English inns could offer private guest
  rooms, whereas colonial inns were better suited
  for communal accommodations.

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• The word hotel is the Anglicized version of the
  French hotel garni, which translates into large,
  furnished mansion.
• The first lodging facility that can be directly
  considered a precursor of the modern hotel was
  the 73 rooms City Hotel built in New York in
  1794.
• It is a significant milestones in the evolution
  of lodging because its sole purpose was to house
  guests. All the previous inns were homes first,
  and lodging facilities second.

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• In 1829, Tremont House was built in Boston. This
  property was another milestone in the early
  revolution of hotels.

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• It was considered as the first five-star hotel.
  Highly trained staff, French Cuisine, and
  luxurious appointed rooms combined to give guests
  the finest hotel experience available ever to
  that point in time.
• Amenities offered by the Tremont House include
  in-room water pitchers and free soap, that was
  considered revolutionary.

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D. 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)

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2. According to Target Market

• Commercial Hotels
• Airport Hotels
• Suite Hotels
• Residential Hotels
• Resort Hotels
• Bed and Breakfast Hotels
• Time-Share and Condominium
• Casino Hotels
• Conference Centers
• Convention Hotels
• Alternative Lodging Properties

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3. According to Levels of Service

• a. World-Class Service
• b. Medium-Range Service
• c. Economy / Limited Service

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4. According to Type of Ownership and
Affiliation

• Independent
• Chain Hotels
• - Management Contract
• - Franchise

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5. Reasons for Traveling

• Business Travel
• b. Pleasure Travel
• c. Group Travel
• d. Buying Influences

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6. According to Quality Ranking

• Deluxe
• First Class
• Standard
• Economy

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7. According to Location

• Center City
• Suburban
• Resort
• Airport
• Highway

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E. Hotel Organization

• Mission Statement
• 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
  hotels mission statement should address the
  interests of three diverse groups guests,
  management, and employees.

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• Objectives
• 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.

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Goals 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 hotels
mission.Strategies Are the methods a
department or division plans to use to achieve
its goals.
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• Organizational Chart 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
  direct-line accountability. Dotted lines indicate
  relationships that involve a high degree of
  cooperation and communication, but not direct
  reporting relationship.

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F. 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
  hotels revenue centers (housekeeping,
  accounting, engineering and maintenance, and
  human resources division).

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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).

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G. Hotel Divisions

• Food and Beverage Division
• Sales and Marketing Division
• Accounting Division
• Engineering and Maintenance
• Security Division
• Human Resource Division
• Rooms Division
• Other Divisions -Retail Outlets -
  Recreation - Casino

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Rooms Division

• The rooms division comprises departments and
  personnel essential in providing the services
  guests expect during a hotel stay. In most
  hotels, the rooms division generates more revenue
  than other divisions.

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Departments under Rooms Division

• Front Office Department
• Housekeeping Department

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The front office is the most visible department
in a hotel. Front office personnel also have
more contact with guests than staff in most other
departments. The front desk is usually the
focal point of activity for the front office and
is prominently located in the hotels lobby.
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Functions of the front office

• Sell guestrooms, register guests, and assign
  guestrooms.
• Coordinate guest services.
• Provide information about the hotel, the
  surrounding community and any attractions or
  events of interest to guests.
• Maintain accurate room status information.
• Maintain guest accounts and monitor credit.
• Produce guest account statements, and complete
  proper financial settlement.

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Sections under the Front Office Department

• Reservations
• Communications (Private
  Branch Exchange or PBX)
• Uniformed Service
• Bell Attendants
• Door Attendants
• Valet Parking Attendants
• Transportation Personnel
• Concierge