PowerPoint to accompany
Chapter 1
Develop and
update hospitality
industry knowledge
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Types of research
 Formal
 Interviews
 Questionnaires
 Discussions
 Informal
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Newspaper articles
Brochures
Observation
Training sessions
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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).
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Sources of information
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Media
Reference Books
Libraries
Visiting attractions
Leaflets and brochures
Tourist offices and commissions
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Sources of information
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Internet
Personal experience
Colleagues and associated
Industry associations
Industry contacts, mentors and
advisors
 Familiarisation trips
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
The guest
A guest is the entity receiving
hospitality
 Individual person
 Company/business
 Region
 Country
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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:
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Restaurants
Clubs
Resorts
Cruise ships
Fast food outlets
Hotels.
 Each sector offers different products and
services.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Commercial hospitality
 Hospitality businesses that offer food,
beverages and/or accommodation for
a profit.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Non-commercial hospitality
 Hospitality organisations that provide
food, beverages and/or
accommodation free of charge (not
for profit).
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Factors affecting a hospitality
enterprise
 Internal factors
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Service standards
Working conditions
Pricing structure
Financial support
Products and services offered.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Factors affecting a hospitality
enterprise
 External factors
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Trends
Competition
Market needs, expectations and demand
Seasonality
Location
Environmental issues
Industry regulations and legislation
Availability of skilled staff.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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).
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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:
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Leisure/pleasure/holiday
Business
Conference
Visiting relatives.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Relationship between tourism and
hospitality
 When people travel they need many
hospitality services:
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Accommodation
Food
Beverages
Entertainment
 For many, this relationship is served
by packaged holidays.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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).
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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/infrastructure at the
destination.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Economic impact of tourism
 Tourism contributes significantly to
the economy of Australia, in terms of:
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Job opportunities/employment
Consumption of goods and services
Export and import earnings
Infrastructure development
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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).
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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:
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Utility companies
Building companies
Local and state government
Supplies (linen, food, beverages)
Labour market
Retail outlets
Attractions/events/entertainment/recreation facilities
Transport services
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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’.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
What is ‘Responsible tourism
development’?
 An attempt to balance the needs of
local communities with those of the
tourists.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Cultural tourism
 Tourism activities that enable tourists
to engage more with other cultures
and lifestyles.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Environmental issues for tourism and
hospitality
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Protection of the environment
Sustainable development
Ecotourism
Waste management
Energy efficient operations
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
What is ‘waste management’?
 The management of the disposal of
the waste generated through tourismbased activities.
 It is important to manage our waste to
help sustain the environment, reduce
costs, reduce pollution and reduce
consumption of finite resources.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Hospitality departments
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Food and beverage
Rooms/Accommodation Services
Maintenance/engineering
Financial control
General administration
Management
Human resources
Clubs and gaming
Sales and marketing
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Roles in food and beverage
 Floor staff
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Waiting staff
Bar attendants
Glassies
Supervisors
Cashiers
Host/ess
 Kitchen
 Chefs
 Kitchen hands
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Roles in accommodation services
 Front office
 Cashier
 Receptionist
 Supervisor
 Back office
 Telephonist
 Reservationist
 Supervisor
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Roles in accommodation services
 Concierge
 Porter
 Valet
 Housekeeping
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Room attendant
Butler
Public area cleaner
Supervisor
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Other roles
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Maintenance/engineering
Financial controller
Human resources manager
Sales and marketing manager
General administration
Management
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General manager
Assistant manager
Department heads
Duty managers
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Industry expectations
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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
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Work performance expectations
 Irrespective of the sector or venue in
which we work, it is expected that we
provide service:
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efficiently
knowledgably
skilfully
courteously.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Industrial relations
 The management of relationships
between employers and employees.
 Regulated by both legislation and
workplace policy.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Industry employer groups
 Organisations that assist employers
(businesses) with:
 Industrial relations
advice/representation
 Legal advice
 Operational support
 Training support
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Trade union
 An organisation that represents
employees (workers).
 Aims to protect and improve its
members workplace rights and
entitlements.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
What is ‘quality assurance’?
 The control of the variations in the
provision of goods and services that
ensures consistency.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Cost of not providing quality
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Waste of time
Loss of money
Loss of customers
Lack of consistency
Customer complaints
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Star rating system
 Managed and awarded by AAA
Tourism.
 Provides for a consistent and
independent assessment of standard
and services offered.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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).
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Extranet
 A private or internal (company)
computerised information network
used to securely communicate and
share information with a limited
groups of external parties.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Intranet
 A private or internal (company)
computerised information network
used to securely share organisation
information within the organisation.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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 tourismrelated products – transport, beds,
tours.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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).
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
What legislation impacts the
hospitality industry?
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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
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
What is an ‘award’?
 A work code that sets minimum
working conditions and pay rates in
an industry or sector of an industry.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Employee Collective Agreement
(ECA)
 A work conditions agreement that
represents a group of employees.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Australian Workplace Agreement
(AWA)
 A work conditions agreement
negotiated between an individual and
his or her employer.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Fairness test
 AWA’s and ECA’s replace any award that
might otherwise apply in that workplace
(with the exception of unexpired existing
AWA’s).
 All AWA’s and ECA’s 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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
What are ‘ethics’?
 A system of principles and values that
govern the way we behave and act.
 Unethical practices may have legal
implications.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
Some of the ethical issues affecting
the hospitality industry
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Confidentiality
Money security
Overbooking
Product recommendations
Pricing
Gifts, services free of charge and
familiarisations
 Codes of practice
 Commission procedures
 Tipping
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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.
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia
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
O’Shannessy, Minett, The Road to Hospitality, 3e : © 2008 Pearson Education Australia