Hospitality Industry Hospitality is the cordial and generous reception and entertainment of guests or strangers, either socially or commercially. The Hospitality.

Hospitality IndustryHospitality Industry

Hospitality is the cordial and generous Hospitality is the cordial and generous reception and entertainment of guests or reception and entertainment of guests or strangers, either socially or commercially.strangers, either socially or commercially.

The Hospitality Industry is comprised of The Hospitality Industry is comprised of those businesses which practice the act of those businesses which practice the act of being hospitable; those businesses which being hospitable; those businesses which

are characterized by generosity and are characterized by generosity and friendliness to guests.friendliness to guests.

I. Overview of Hospitality IndustryI. Overview of Hospitality Industry

A. Characteristics of Hospitality IndustryA. Characteristics of Hospitality Industry

1.1. InseparabilityInseparability

2.2. PerishabilityPerishability

3.3. Labor-intensiveLabor-intensive

4.4. RepetitiveRepetitive

5.5. IntangibilityIntangibility

B. Components of Hospitality IndustryB. Components of Hospitality Industry

1. Lodging Operations1. Lodging Operations-such as hotels, resorts, motels etc.-such as hotels, resorts, motels etc.

2. 2. Transportation ServicesTransportation Services-such as taxi, train, cruise ships, etc.-such as taxi, train, cruise ships, etc.

3. 3. Food and Beverage OperationsFood and Beverage Operations-such as restaurants, bars, etc.-such as restaurants, bars, etc.

4. 4. Retail StoresRetail Stores-such as souvenir shops, etc.-such as souvenir shops, etc.

5. 5. ActivitiesActivities-such as recreations, festivals, etc.-such as recreations, festivals, etc.

C. Classification of HotelsC. Classification of Hotels

1.1. According to Size:According to Size:

a. Small Scale (under 150 rooms)a. Small Scale (under 150 rooms)

b. Medium Scale (150 to 299 rooms)b. Medium Scale (150 to 299 rooms)

c. Large Scale (300 and above)c. Large Scale (300 and above)

2. According to Target Market:2. According to Target Market:

a.a. Commercial HotelsCommercial Hotels

b.b. Airport HotelsAirport Hotels

c.c. Suite HotelsSuite Hotels

d.d. Residential HotelsResidential Hotels

e.e. Resort HotelsResort Hotels

f.f. Bed and Breakfast HotelsBed and Breakfast Hotels

g.g. Time-Share and CondominiumTime-Share and Condominium

h.h. Casino HotelsCasino Hotels

i.i. Conference CentersConference Centers

j.j. Convention HotelsConvention Hotels

k.k. Alternative Lodging PropertiesAlternative Lodging Properties

3. According to Levels of Service3. According to Levels of Service

a. World-Class Service a. World-Class Service

b. Medium-Range Serviceb. Medium-Range Service

c. Economy / Limited Servicec. Economy / Limited Service

4. According to Type of Ownership and 4. According to Type of Ownership and Affiliation Affiliation

a.a. IndependentIndependent

b.b. Chain HotelsChain Hotels

- Management Contract- Management Contract

- Franchise- Franchise

5. Reasons for Traveling5. Reasons for Traveling

a. Business Travela. Business Travel

b. Pleasure Travelb. Pleasure Travel

c. Group Travelc. Group Travel

d. Buying Influencesd. Buying Influences

6. According to Quality Ranking6. According to Quality Ranking

a.a. DeluxeDeluxe

b.b. First ClassFirst Class

c.c. StandardStandard

d.d. EconomyEconomy

7. According to Location7. According to Location

a.a. Center CityCenter City

b.b. SuburbanSuburban

c.c. ResortResort

d.d. AirportAirport

e.e. HighwayHighway

D. Hotel OrganizationD. Hotel Organization

Mission StatementMission Statement

Defines the unique purpose that sets one hotel or hotel company apart from 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 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 hotel policies. A hotel’s mission statement should address the interests of three diverse groups: guests, management, and employees.diverse groups: guests, management, and employees.

ObjectivesObjectives

Are those ends an organization must achieve to effectively carry out its 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 mission. An objective is more specific than a mission; it calls for levels of achievement which can be observed and measured.achievement which can be observed and measured.

GoalsGoals

Define the purpose of a department or division; they direct the actions of 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 managers and employees and the functions of the department or division towards fulfilling the hotel’s mission.the hotel’s mission.

StrategiesStrategies

Are the methods a department or division plans to use to achieve its goals.Are the methods a department or division plans to use to achieve its goals.

Organizational ChartOrganizational Chart

A schematic representation of the relationships between positions within the 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 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-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 line accountability. Dotted lines indicate relationships that involve a high degree of cooperation and communication, but not direct reporting relationship. cooperation and communication, but not direct reporting relationship.

E. Classification of Functional Areas:E. Classification of Functional Areas:

Revenue vs. Support CentersRevenue vs. Support Centers

Revenue CentersRevenue Centers - those that sells goods or services to guests, - those that sells goods or services to guests, thereby generating revenue for the hotelthereby generating revenue for the hotel (front office, food and (front office, food and beverage outlets, room service and retail stores).beverage outlets, room service and retail stores).

Support CentersSupport Centers - - these do not generate direct revenue, but provide these do not generate direct revenue, but provide important backing for the hotel’s revenue centers (housekeeping, important backing for the hotel’s revenue centers (housekeeping, accounting, engineering and maintenance, and human resources accounting, engineering and maintenance, and human resources division).division).

Front-of-the-house vs. Back-of-the-houseFront-of-the-house vs. Back-of-the-house

Front-of-the-houseFront-of-the-house -- areas that involves guest and employee areas that involves guest and employee interaction (front office, restaurants, and lounges).interaction (front office, restaurants, and lounges).

Back-of-the-houseBack-of-the-house - areas where interaction between guests - areas where interaction between guests and employees is less common (housekeeping, engineering and employees is less common (housekeeping, engineering and maintenance, accounting, and human resources).and maintenance, accounting, and human resources).

F. Hotel Divisions:F. Hotel Divisions:

1.1. Food and Beverage DivisionFood and Beverage Division

2.2. Sales and Marketing DivisionSales and Marketing Division

3.3. Accounting DivisionAccounting Division

4.4. Engineering and MaintenanceEngineering and Maintenance

5.5. Security DivisionSecurity Division

6.6. Human Resource DivisionHuman Resource Division

7.7. Rooms Division Rooms Division

-Housekeeping-Housekeeping

-Front Office-Front Office

8.8. Other Divisions:Other Divisions:-Retail Outlets-Retail Outlets- Recreation- Recreation- Casino- Casino