Develop and update hospitality industry knowledge

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Chapter 1

• Develop and update hospitality industry knowledge

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On successful completion of this chapter you will
be able to

• Seek information on the hospitality industry
• Source, access and obtain information on legal
  and ethical issues that impact on the hospitality
  industry
• Update your hospitality industry knowledge.

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What is research?

• Research is a set of formal and informal
  techniques used to locate information and to
  process that information so that we can use
  relevant data to build our knowledge.

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Types of research

• Formal
• Interviews
• Questionnaires
• Discussions
• Informal
• Newspaper articles
• Brochures
• Observation
• Training sessions

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Types of research

• Qualitative research explores ideas, seeks
  feedback on performance and helps identify
  preferences
• Quantitative research measures and monitors
  events and performance in terms of quantity,
  numbers and percentages.

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Questioning techniques

• Open-ended questions that require more than a
  yes or no answer.
• Closed questions that make it easy to say yes
  or no (or make other non-buying decisions).

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Sources of information

• Media
• Reference Books
• Libraries
• Visiting attractions
• Leaflets and brochures
• Tourist offices and commissions

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Sources of information

• Internet
• Personal experience
• Colleagues and associated
• Industry associations
• Industry contacts, mentors and advisors
• Familiarisation trips

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The host

• At the core of the hospitality industry is the
  host-guest relationship.
• The host is the entity giving the hospitality
• Individual person
• Company/business
• Region
• Country

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The guest

• A guest is the entity receiving hospitality
• Individual person
• Company/business
• Region
• Country

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Hospitality industry sectors

• A sector is one area or division of an industry.
  Each of the following can be said to be sectors
  of the hospitality industry
• Restaurants
• Clubs
• Resorts
• Cruise ships
• Fast food outlets
• Hotels.
• Each sector offers different products and
  services.

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Commercial hospitality

• Hospitality businesses that offer food, beverages
  and/or accommodation for a profit.

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Non-commercial hospitality

• Hospitality organisations that provide food,
  beverages and/or accommodation free of charge
  (not for profit).

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What are products?

• Products are tangible items that guests can touch
  or consume such as food and beverage items, a
  guest room and the amenities in that room.

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What is service?

• Service is the action, activity or experience
  provided by staff for the guests pleasure,
  benefit or enjoyment of the hospitality
  experience.
• It is something we do for the guest. For example,
  serve food and beverage items, provide
  information, check a guest in or out.

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Factors affecting a hospitality enterprise

• Internal factors
• Service standards
• Working conditions
• Pricing structure
• Financial support
• Products and services offered.

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Factors affecting a hospitality enterprise

• External factors
• Trends
• Competition
• Market needs, expectations and demand
• Seasonality
• Location
• Environmental issues
• Industry regulations and legislation
• Availability of skilled staff.

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What is tourism?

• Those activities that take people away from their
  usual place of residence for pleasure or a
  holiday, other than for work.
• Tourism occurs as a result of the different types
  of businesses that provide a range of products
  and services to visitors.

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Tourism sectors

• Those industries or business enterprises that
  provide goods and services to tourists, visitors
  and travellers, such as
• Hospitality related enterprises
• Travel operations
• Visitor services.

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What is a tourist?

• A tourist is a person who travels for pleasure
  and for reasons other than employment or
  business, usually more than 40 kilometres from
  home and usually for a period of more than 24
  hours.

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Types of tourists

• Inbound
• Visitors to Australia whose main place of
  residence is not Australia.
• Outbound
• Tourists whose main place of residence is in
  Australia, travelling outside Australia.
• Domestic
• Australian residents travelling within Australia
  (interstate and intrastate).

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Types of tourists

• Interstate
• Australian tourists travelling within Australia,
  to a state/territory other than where they
  usually reside.
• Intrastate
• Australian tourists travelling within the
  state/territory in which they usually reside.

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Purpose of travel

• Refers to the visitors reason for travel.
  Understanding the purpose of travel helps us
  better meet individual guests expectations and
  needs. Purpose of travel includes
• Leisure/pleasure/holiday
• Business
• Conference
• Visiting relatives.

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Relationship between tourism and hospitality

• When people travel they need many hospitality
  services
• Accommodation
• Food
• Beverages
• Entertainment
• For many, this relationship is served by packaged
  holidays.

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Factors affecting accommodation choice

• Cost (how much can guest afford/how much do they
  want to spend)
• Standard or quality (how important is the
  standard/what standard or quality of
  accommodation is available at the destination)
• Availability (what accommodation is available for
  the required dates)
• Length of stay (how long does guest want to
  stay/relative to cost).

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Factors affecting accommodation choice

• Destination/location (what is available at the
  destination/what choices are there)
• Purpose of travel
• Star rating
• Types of services available (does this suit the
  guests needs business facilities, family
  orientation, choice of dining experiences,
  accessibility to other facilities/attractions/infr
  astructure at the destination.

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What is a package holiday?

• An inclusive arrangement usually for transport,
  accommodation, transfers, some meals,
  occasionally tours and various other aspects of a
  trip for an all-inclusive price.

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Economic impact of tourism

• Tourism contributes significantly to the economy
  of Australia, in terms of
• Job opportunities/employment
• Consumption of goods and services
• Export and import earnings
• Infrastructure development

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Recent impacts on tourism

• Almost all impacts on tourism whether positive
  or negative will have an impact on many
  hospitality enterprises. The most significant
  recent impacts have included
• Movement in the value of the Australian dollar
• Continued threats of and actual acts of terrorism
• Ongoing civil and political unrest in may parts
  of the world
• SARS
• Bird flu
• Natural disasters (including earthquakes,
  tsunami, bush fires, drought).

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Relationship between hospitality and other
industries

• The hospitality industry is reliant on and has a
  direct link with other industries that supply
  part of the necessary infrastructure (for
  sustainable tourism) and goods and services such
  as
• Utility companies
• Building companies
• Local and state government
• Supplies (linen, food, beverages)
• Labour market
• Retail outlets
• Attractions/events/entertainment/recreation
  facilities
• Transport services

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Hospitality and the multiplier effect

• The link between the hospitality industry and
  other industries generates a flow of spending
  through the community. This is referred to as the
  multiplier effect.

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Social and cultural significance of tourism and
hospitality

• Tourism activities, and therefore hospitality,
  can result in considerable social and cultural
  costs to a community. It is therefore important
  that tourism-related enterprises operate in a
  manner that promotes
• Responsible development
• Economic benefits for a better quality of life
• Cultural respect

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What is Responsible tourism development?

• An attempt to balance the needs of local
  communities with those of the tourists.

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Cultural tourism

• Tourism activities that enable tourists to engage
  more with other cultures and lifestyles.

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Environmental issues for tourism and hospitality

• Protection of the environment
• Sustainable development
• Ecotourism
• Waste management
• Energy efficient operations

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What is Sustainable Development?

• Balancing limited tourism use of sensitive
  natural environments with conservation management
  principles so that future generations may also
  enjoy these areas.

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What is ecotourism?

• An attempt to provide a link between the economic
  development of tourism and the conservation of
  the natural areas. Thus, it is concerned with
  maintaining the natural and cultural integrity of
  certain tourism areas.

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What is waste management?

• The management of the disposal of the waste
  generated through tourism-based activities.
• It is important to manage our waste to help
  sustain the environment, reduce costs, reduce
  pollution and reduce consumption of finite
  resources.

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What are the benefits of an energy efficient
operation?

• Helps reduce the potentially negative effects (of
  resource consumption) on the environment.
• Helps reduce operating costs.

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Hospitality departments

• Food and beverage
• Rooms/Accommodation Services
• Maintenance/engineering
• Financial control
• General administration
• Management
• Human resources
• Clubs and gaming
• Sales and marketing

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Roles in food and beverage

• Floor staff
• Waiting staff
• Bar attendants
• Glassies
• Supervisors
• Cashiers
• Host/ess
• Kitchen
• Chefs
• Kitchen hands

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Roles in accommodation services

• Front office
• Cashier
• Receptionist
• Supervisor
• Back office
• Telephonist
• Reservationist
• Supervisor

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Roles in accommodation services

• Concierge
• Porter
• Valet
• Housekeeping
• Room attendant
• Butler
• Public area cleaner
• Supervisor

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Other roles

• Maintenance/engineering
• Financial controller
• Human resources manager
• Sales and marketing manager
• General administration
• Management
• General manager
• Assistant manager
• Department heads
• Duty managers

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Industry expectations

• Excellent service ethos
• Strong work ethic
• Excellent communication skills
• Excellent interpersonal skills
• High standard of grooming
• Good product knowledge
• Excellent work-related skills
• Honesty
• Punctuality
• Reliability
• Initiative
• Positive attitude
• Dedication

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Work performance expectations

• Irrespective of the sector or venue in which we
  work, it is expected that we provide service
• efficiently
• knowledgably
• skilfully
• courteously.

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Working conditions in the hospitality industry

• Depending on the sector and enterprise may
  operate 24 hours a day, every day of the year.
  Therefore, expect
• Shift work mornings, afternoon and night shifts
  
• Changing rosters
• Long hours
• Physically demanding work
• High customer contact
• Working conditions are generally determined by
  awards and enterprise or individual agreements.

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Industrial relations

• The management of relationships between employers
  and employees.
• Regulated by both legislation and workplace
  policy.

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Industry employer groups

• Organisations that assist employers (businesses)
  with
• Industrial relations advice/representation
• Legal advice
• Operational support
• Training support

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Trade union

• An organisation that represents employees
  (workers).
• Aims to protect and improve its members workplace
  rights and entitlements.

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What is quality assurance?

• The control of the variations in the provision of
  goods and services that ensures consistency.

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What is a standard?

• A minimum level at which output is to be provided
  or produced to assure a consistent quality. For
  example
• how quickly a meal must be prepared and how it
  must be presented on the plate
• how a prepared cocktail must be presented
• how a table must be set for a function
• how a guest room must look and be cleaned
• how many rooms must be cleaned during a specified
  shift
• how many tables/guests a waiter is responsible
  for
• how staff must present themselves for work
  (correct uniform, name badge, etc)
• how a telephone must be answered
• how a guest is greeted
• how a reservation is recorded.

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What is a standard

• By setting standards we are able to measure or
  judge the quality of the output.
• By standardising what we do and how we do, all
  staff understand explicitly what is expected of
  them.

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Cost of not providing quality

• Waste of time
• Loss of money
• Loss of customers
• Lack of consistency
• Customer complaints

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Star rating system

• Managed and awarded by AAA Tourism.
• Provides for a consistent and independent
  assessment of standard and services offered.

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E-commerce

• Electronic commerce conducting business via the
  Internet.
• An ever-increasing means by which consumers
  undertake business transactions (raising the
  stakes for more traditional means by which we
  conduct business/market our companies).

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Extranet

• A private or internal (company) computerised
  information network used to securely communicate
  and share information with a limited groups of
  external parties.

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Intranet

• A private or internal (company) computerised
  information network used to securely share
  organisation information within the organisation.

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Computerised reservation systems (CRS)

• Also referred to as central reservation systems.
• A CRS is a fully automated means by which we can
  create and amend bookings for almost all
  tourism-related products transport, beds,
  tours.

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Legal matters

• Multiple federal and state-based legislation and
  regulations impact hospitality enterprises.
• which laws and regulations apply to which
  businesses depends on the nature of the business.
• The laws bind both employers (businesses) and
  employees.

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What is a duty of care?

• The responsibility one person has for the safety
  and well-being of another (in the eyes of the
  law).

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What is vicarious liability?

• Where an employer has a duty of care for the
  public, their liability is extended to the
  actions of their employees. That is, the employer
  is responsible for ensuring that their employees
  work within the law.

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What legislation impacts the hospitality industry?

• Building laws and regulations
• Liquor licensing controls
• Gaming regulations
• Occupational health and safety
• Public health legislation
• Industrial relations law
• Consumer law and trade practices
• Privacy legislation
• Innkeepers legislation
• Child sex tourism
• Equal opportunity and anti-discrimination
• Accident compensation

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What is an award?

• A work code that sets minimum working conditions
  and pay rates in an industry or sector of an
  industry.

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Employee Collective Agreement (ECA)

• A work conditions agreement that represents a
  group of employees.

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Australian Workplace Agreement (AWA)

• A work conditions agreement negotiated between an
  individual and his or her employer.

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Fairness test

• AWAs and ECAs replace any award that might
  otherwise apply in that workplace (with the
  exception of unexpired existing AWAs).
• All AWAs and ECAs must be certified by the
  Workplace Authority and must demonstrate that
  fair compensation has been provided for modifying
  or removing any or all protected award
  conditions.

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What is a consumer?

• Someone who uses (consumes) a good or service for
  non-commercial purposes (personal use).
• Our guests and customers are consumers and their
  rights as such are protected by consumer
  protection legislation.

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Discrimination

• To discriminate is to treat one person
  differently or less favourably than another in
  the same situation based on a difference between
  the parties such as race, sexual preference,
  gender, age, marital status, political
  convictions or religious beliefs.
• Multiple pieces of legislation exist to protect
  our right to not be discriminated against.

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What are ethics?

• A system of principles and values that govern the
  way we behave and act.
• Unethical practices may have legal implications.

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Some of the ethical issues affecting the
hospitality industry

• Confidentiality
• Money security
• Overbooking
• Product recommendations
• Pricing
• Gifts, services free of charge and
  familiarisations
• Codes of practice
• Commission procedures
• Tipping

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Updating our industry knowledge

• It will soon become apparent that what we learn
  and know today may change tomorrow. This is
  particularly true of legislation and the way in
  which business is transacted.
• Importantly then, we need to remain in touch with
  changes to remain well informed and relevant.

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Monitoring the industry

• We need to identify and use a range opportunities
  to remain informed about
• Industry trends (food and accommodation
  preferences, changes to consumer spending habits,
  destination popularity, etc)
• Emerging markets
• Government initiatives
• Labour issues
• Industry expansion and contraction
• Economic issues
• Technological advances