Hospitality and Tourism Chapter 1. Products = Goods and Services Goods are tangible (can feel, smell, etc.) Goods are tangible (can feel, smell, etc.)

Hospitality and TourismHospitality and Tourism

Chapter 1Chapter 1

Products = Goods and Products = Goods and ServicesServices

• Goods are tangible (can feel, smell, Goods are tangible (can feel, smell, etc.)etc.)

Examples: Soft drink, t-shirt, foodExamples: Soft drink, t-shirt, food

Services are intangible (not touch, Services are intangible (not touch, smell, etc.)smell, etc.)

Examples: Wake-up call, conciergeExamples: Wake-up call, concierge

Which is more important to Which is more important to hospitality and travel?????hospitality and travel?????

• A good??????A good??????

• A service????A service????

Product VariablesProduct Variables• Perishability – probability of product Perishability – probability of product

ceasing to exist or becoming ceasing to exist or becoming unusable in a certain period of timeunusable in a certain period of time

• Empty Hotel rooms (lost income)Empty Hotel rooms (lost income)

IntangibilityIntangibility

• Things that cannot be touchedThings that cannot be touched– Goods and services that related to Goods and services that related to

memories/experiencesmemories/experiences– Brochures/Web sites to see what looks Brochures/Web sites to see what looks

like (cannot sample prior to arrival)like (cannot sample prior to arrival)

ChangeabilityChangeability

• Opinion of guest is subject to being Opinion of guest is subject to being changed or altered.changed or altered.– Example: Guest at a hotel being Example: Guest at a hotel being

disturbed by someone in the next room disturbed by someone in the next room (opinion of hotel will be changed (opinion of hotel will be changed possibly)possibly)

***The Importance of ***The Importance of Hospitality and Tourism***Hospitality and Tourism***•Employees more than 8 million peopleEmployees more than 8 million people

•Generates 525+ billion dollars in salesGenerates 525+ billion dollars in sales

•Third largest retail industry behind Third largest retail industry behind automotive and food storesautomotive and food stores

•One out of every 7 Americans One out of every 7 Americans employed directly or indirectlyemployed directly or indirectly

Importance of hospitality and Importance of hospitality and tourism totourism to

• Pulaski County?????Pulaski County?????

• Our Country??????Our Country??????

The Hospitality industry The Hospitality industry • LodgingLodging – hotels, motels, – hotels, motels,

inns, and bed and inns, and bed and breakfastsbreakfasts

• Local Examples????Local Examples????

• Food-service Food-service ManagementManagement – casinos, – casinos, restaurants, catering restaurants, catering companies, hospitals, companies, hospitals, schools, etc.schools, etc.

• Local Examples????Local Examples????

Tourism BusinessesTourism Businesses• Travel/Transportation vendors: air, Travel/Transportation vendors: air,

rail, auto, cruise, and motor-coach rail, auto, cruise, and motor-coach traveltravel

• Tourism offices, chamber of Tourism offices, chamber of commerce, etc. distribute commerce, etc. distribute information to travelersinformation to travelers

The Tourism IndustryThe Tourism Industry

• Local Examples????Local Examples????

http://www.lakecumberlandtourism.com/lake_boating.php

Other BusinessesOther Businesses

• Recreational facilitiesRecreational facilities

• Meeting-Planning Meeting-Planning servicesservices

• Sports and Sports and Entertainment IndustriesEntertainment Industries

Technology TrendsTechnology Trends

• Websites – be utilized to entice Websites – be utilized to entice customers to purchase products and customers to purchase products and servicesservices– Booking reservationsBooking reservations– May get discounts if book on InternetMay get discounts if book on Internet

(saves company money – don’t have to pay as (saves company money – don’t have to pay as many employees)many employees)

Internet AccessInternet Access

• Access to Internet in hotel rooms and Access to Internet in hotel rooms and lobbieslobbies

• Restaurants – Internet accessRestaurants – Internet access

• Airports/Airplanes – Internet accessAirports/Airplanes – Internet access

Information managementInformation management

• Networks – have access to guest Networks – have access to guest information (create profiles)information (create profiles)– Helps predict salesHelps predict sales– Planning promotionsPlanning promotions– Developing better guest relationsDeveloping better guest relations– Planning menusPlanning menus

Guest ServicesGuest Services

• Wake-up callsWake-up calls

• Video check-in and check-outVideo check-in and check-out

• Computerized heating and coolingComputerized heating and cooling

• Computerized lightingComputerized lighting

Trends in hospitality and Trends in hospitality and tourismtourism•Safety – food service sanitationSafety – food service sanitation

– Increased security at hotels Increased security at hotels (keyless electronic locks)(keyless electronic locks)

– Women only floorsWomen only floors– Cruises have passport control Cruises have passport control

and photo IDsand photo IDs– Stricter entrance procedures at Stricter entrance procedures at

stadiums, airlines, etc.stadiums, airlines, etc.

Other trendsOther trends

• Diversity – more women and Diversity – more women and minorities working in hospitality and minorities working in hospitality and traveltravel

• Managers/employees – will need to Managers/employees – will need to be able to work with people of be able to work with people of different culturesdifferent cultures

Other trendsOther trends

• Ecology – increased awareness of Ecology – increased awareness of protecting the environmentprotecting the environment– RecyclingRecycling– Using environmentally friendly productsUsing environmentally friendly products– Reuse towelsReuse towels

MarketsMarkets

• Certain markets are growing (Baby Certain markets are growing (Baby Boomers)Boomers)– Spas are growing (seeking wellness and Spas are growing (seeking wellness and

decrease stress)decrease stress)– More states are legalizing gambling More states are legalizing gambling

(increase in casino properties)(increase in casino properties)– Time sharing (worldwide vacation Time sharing (worldwide vacation

ownership)ownership)

ConvenienceConvenience

• Emphasis on value of time and Emphasis on value of time and moneymoney– Products and services must be Products and services must be

convenient and easily accessibleconvenient and easily accessible– Extensive take-out offeringsExtensive take-out offerings– 24 hour locations24 hour locations– Casual atmospheresCasual atmospheres– Convenient checkin/checkoutConvenient checkin/checkout