30-01-2013
INTRODUCTION TO HOSPITALITY
INDUSTRY (FRM 100)
MODULE 1: HISTORY OF THE HOSPITALITY
INDUSTRY
MODULE 2: THE HOTEL BUSINESS
MODULE 3: ROOMS DIVISION OPERATIONS
MODULE 4: FOOD AND BEVERAGE
OPERATIONS
MODULE 5: TOURISM
MODULE 6: THE RESTAURANT BUSINESS
MODULE 7: MANAGED SERVICES
MODULE 8: RECREATION, THEME PARKS
AND CLUBS
MODULE 1: HISTORY OF THE
HOSPITALITY INDUSTRY
•
•
OVERVIEW
The history of the hospitality industry dates all the
way back to the Colonial Period in the late 1700s.
Things have changed quite a bit since then; the
hospitality industry has experienced significant
development over the years as it has faced World
Wars, The Depression and various social changes.
The industry as we know it today began to take
form in the early 1950s 60s, leading the way for
growth into the dynamic industry we know today.
GOAL
To understand the factors that influenced the
development of the hospitality industry
Objectives
At the end of this lesson students will be able
to:
Define
hospitality
and
describe
its
characteristics
Identify and describe the characteristics of
various historical periods
Identify the multiple factors influencing the
hospitality industry
Chronicle the developments in the hospitality
industry (from early beginnings to present)
Hospitality
◦ To provide for the weary
◦ Take care of those traveling
Early Hospitality
Medieval Period
Greek/Roman culture
◦ Noted as early as 40 BC
◦ Social and religious purposes
Roman businessmen traveled
Romans were the first pleasure travelers
After fall of roman empire, public
hospitality fell to religious orders
From the French word “hospice”
English travelers
Inns were actually private homes
Nobility stayed in monasteries
Stagecoach became favored
transportation
1
30-01-2013
Renaissance Period
(16th Century)
High demand for inns and taverns
1st hotel-Hotel de Henry IV 1788
◦ Built at cost of $17,500
◦ 60 beds
The New World
(18th Century)
Eating and Sleeping Places
New York / New England – taverns
Pennsylvania – inns
Southern colonies - ordinaries
Coffee houses
The French Revolution
Changed the course of culinary history
Georges Auguste Escoffier
M. Boulanger
Nineteenth Century
◦ General Manager was Cesar Ritz
◦ Chef was Georges Auguste Escoffier
◦ Brigade system
Revolution caused some of the chefs to
come to the New World
Twentieth Century Travel
After WWII, travel began
1950s –advent of cross-continental flights
1958 – Trans-Atlantic flights
First motel in California
Resurgence of inner city lodging properties
Increased interest in cruises
Delmonico’s in New York City
◦ Expensive
◦ 1827-1923
◦ Bilingual menu
◦ “father of modern restaurant”
◦ Called soup he sold “restorantes”
1898 Savoy Hotel opened in London
Twentieth Century Restaurants
1921 – White Castle
1927 – Howard Johnsons
1927 – Marriot Hot Shoppe
1965 – TGI Friday’s
1982 – Chili’s
2
30-01-2013
MODULE 2:
THE HOTEL BUSINESS
1960 to Today
Major growth in casual dining
Increase in the number of hotel chains
Mass tourism
Package travel
Baby Boomers
Living Longer
Mergers and acquisitions
Hotel Development
and Ownership
Franchising and management contracts
are the two main driving forces in the
development and operation of the hotel
business
•
Hotel Development and Ownership
• Franchising
• Management Contracts
•
•
•
Classification of Hotels
Types and Locations of Hotels
Best, Biggest, and Most Unusual Hotels and Chains
Franchising
Began in 1907 by The Ritz Carlton
A concept that allows a company to use other
people’s money for growth rather than financing
Franchising is used to rapidly expand businesses
The franchisee is granted the rights to use
trademarks, operating procedures, and other
business procedures
Franchisor means the company that allows an
individual (known as the franchisee) to run a location
of their business.
The franchisor owns the overarching company,
trademarks, and products, but gives the right to the
franchisee to run the franchise location, in return for
an agreed-upon fee.
Franchising (cont’d)
Benefits to the franchisee:
◦
◦
◦
◦
◦
◦
Standard set of plans
National advertising
Centralized reservation system
Participation in volume discounts
Listing in franchisor’s directory
Lower fee percentage charged by credit card companies
Drawbacks to the franchisee:
◦ High fees
◦ Central reservation system accounts for about 7-26% of
reservations
◦ Conformity
◦ Must maintain standards
Franchising (cont’d)
Pros and cons for franchise
company/franchisor
◦ Pros:
Increased market share and recognition
Up-front fees
◦ Cons:
Careful in selection of franchisees
Difficulty maintaining standards and controls
3
30-01-2013
Management Contracts
Franchising (cont’d)
Responsible for the hotel industry’s rapid
boom since the 1970s
Little or no up-front financing or equity
involved
Provides operational expertise, marketing, and
sales clout, often in the form of a centralized
reservation system (CRS)
Allows the hotel company to manage the
property for a period of 5, 10, or 20 years
The company receives a management fee (a
percent of gross and/or net operating profitusually 2-4.5% of gross revenues)
How might franchising involve you? You
may:
◦
◦
◦
◦
Work directly for a franchisor
Work in a franchisor-owned unit
Work for a franchisee
Own a franchise yourself!
Classification of Hotels
U.S. lodging industry consists of 46,000
hotels and motels
AAA Diamond Award:
◦ Inspecting and rating the nation’s hotels since
1977
◦ Less than 2% are 5 Diamond
◦ AAA uses descriptive criteria to evaluate the
hotels that it rates annually in the United
States, Canada, Mexico, and the Caribbean
Classification of Hotels (cont’d)
Types and Locations of Hotels
Classification of Hotels (cont’d)
Hotels may be classified according to location, price,
and type of services offered. This allow guests to
make a selection on these as well as personal criteria.
Following is a list of hotel classifications:
◦ City center. Luxury, first-class, midscale, economy, suites
◦ Resort. Luxury, midscale, economy suites, condominium,
time-share, convention
◦ Airport. Luxury, midscale, economy, suites
◦ Freeway. Midscale, economy suites
◦ Casino. Luxury, midscale, economy
◦ Full service.
◦ Convention.
◦ Economy.
◦ Extended stay.
◦ Bed and breakfast.
One-diamond properties have simple roadside
appeal and the basic lodging needs
Two-diamond properties have average roadside
appeal, with some landscaping and a noticeable
enhancement in interior décor
Three diamonds carry a degree of sophistication
through higher service and comfort
Four diamonds have excellent roadside appeal
and service levels that give guests what they need
before they even ask for it
Five-diamond properties have the highest service
levels, sophistication, and offerings
Types of Hotels
City center
Meets the needs of the traveling public for business or
leisure reasons
Resort
Inclusive and diversified in accommodations
Airport
Guest mix consists of business, group, and leisure travelers;
generally in the 200-600-room size and are full-service
Freeway hotel and
motel
A convenient place to stay, reasonably priced, and with few
frills
Casino
Coming into the financial mainstream; casinos make more
money from the gaming than from the rooms
Convention
Provides facilities and meets the needs of groups attending
and holding conventions
Full-service
Offers a wide range of facilities, services, and amenities
4
30-01-2013
Best, Biggest, and Most Unusual
Hotels and Chains
Types and Locations of Hotels (cont’d)
Types of Hotels
Economy/Budget
Reasonably sized and furnished rooms without the
frills
Boutique
Unique architecture, style, décor, and smaller in size
Extended-Stay
Majority of guests are long term
All-Suite Extended-Stay
Additional space in the form of a lounge and
possibly kitchenette
Condotels
Combination of hotel and condominium
Mixed-Use
Hotel that may also have residence
Bed & Breakfast
Accommodations with the owner, who lives on the
premises or nearby, providing a clean, attractive
accommodation and breakfast
The Oriental Hotel in Bangkok, Thailand
has been rated #1 in the world; so, too,
has the Regent of Hong Kong, the
Mandarin Oriental of Hong Kong, and the
Connaught of London
The Ritz-Carlton and the Four Seasons
are generally rated the highest quality
chain hotels
Best, Biggest, and Most Unusual
Hotels and Chains (cont’d)
Vacation Ownership
Began in the French Alps during the late
1960s
Fastest growing segment of U.S. travel and
tourism industry
For one-time purchase price and payment
of a yearly maintenance fee, purchasers
own their vacation either in perpetuity
(forever) or for a predetermined number
of years
$12,500 average cost to consumer
The Treetops Hotel in one of Kenya’s wild
animal parks – literally in the treetops
The Ice Hotel – built from scratch on an
annual basis with a completely new design,
new suites, and new departments
The Underwater Hotel at the Great
Barrier Reef
MODULE 3: ROOMS
DIVISION OPERATIONS
Vacation Ownership (cont’d)
Vacation clubs, or point-based programs,
provide
the
flexible
use
of
accommodations in multiple resort
locations
Members purchase points that represent
either a travel-and-use membership or a
deed real estate product
Points are then used like money to
purchase accommodations
•
•
•
•
•
•
•
•
•
•
Functions and Departments
Role of the Hotel General Manager
Executive Committee
Rooms Division
Reservations
Communications CBX or PBX
Guest Services/Uniformed Services
Concierge
Housekeeping
Security/Loss Prevention
5
30-01-2013
Functions of Hotel
Role of a General Manager
Provide lodging accommodations
Revenue centers
Cost centers
Serve and enrich society
Create profit for the owners
Provide owners with a reasonable return
on investment
Keep guests and employees happy
Responsible for performance of hotel and
employees
Accountable for the hotel’s level of
profitability
Executive Committee
Figure 3.1 Executive Committee
Makes all the major decisions affecting the
hotel
Made up of key associates who head major
departments:
Executive Committee Chart for a 300+ - room hotel
◦
◦
◦
◦
◦
◦
◦
General Manager
Director of Human Resources
Director of Food & Beverage
Director of Rooms Division
Director of Marketing & Sales
Director of Engineering
Director of Accounting
General Manager
Director of
Food &
Beverage
Director of
Human
Resources
Rooms Division
Departments:
◦
◦
◦
◦
◦
◦
◦
Front Office
Reservations
Housekeeping
Concierge
Guest Services
Security
communications
Director of
Rooms
Division
Director of
Marketing
& Sales
Director of
Engineering
Director of
Accounting
Front Office
Front Office Manager: Enhance guest
services by developing to exceed guest
needs
Guest Service Associate: Greet guests as
they arrive at the hotel, escort them to
the front desk, personally allocate the
room, and take the guest and luggage to
the room
6
30-01-2013
Front Office (cont’d)
The hub or nerve center of the hotel
Responsibilities:
◦ To sell and up-sell rooms
◦ To maintain balanced guest accounts
◦ To offer services such as handling mail, faxes,
messages, and local and hotel information
Night Auditor
Posts charges
Closes the books on a daily basis
Balances guest accounts
Completes daily reports using the
statistics
Reservations
◦ Department is headed by the reservations
manager
◦ Desired outcome of the reservations
department is to exceed guest expectations
when they make reservations
◦ Confirmed reservations are made with
sufficient time for a confirmation slip to be
returned to the client
◦ Guaranteed reservations are given when the
person making the reservation wishes to
ensure that the reservation will be held
Communications CBX or PBX
Management
of
in-house,
guest
communications, and emergency center
Profit center: Hotels generally add a 50%
charge to all long-distance calls placed
from guest rooms
Guest/uniformed Services
Uniformed staff is headed by a guest
services manager
Consists of door attendants, bell persons,
and the concierge
Concierge
Elevates property’s marketable value
Typically in a luxury hotel
Handles guest needs
Should have knowledge of the city
Many speak several languages
Assists
guests
with
restaurant
reservations, directions, tickets to shows,
etc.
7
30-01-2013
Housekeeping
Largest department in terms of people
Executive Housekeeper duties:
Security and Loss Prevention
◦ Leadership of people, equipment, and supplies
◦ Cleanliness and servicing the guest rooms and
public areas
◦ Operating the department according to
financial guidelines
◦ Keeping records
MODULE 4: FOOD &
BEVERAGE OPERATIONS
•
•
•
•
•
•
•
•
Providing guest safety and loss prevention
Includes:
◦ Security officers
◦ Equipment (i.e., smoke alarms, key cards, etc.)
◦ Safety procedures
◦ Identification procedures
Food and Beverage Management
Food and Beverage Management
Kitchen
Food Operations
Bars
Stewarding Department
Catering Department
Room Service/ In-Room Dining
Trends
◦ Kitchen/catering/banquet
◦ Restaurants/room service/minibars
◦ Lounges/bars/stewarding
Food and Beverage
Management (cont’d)
The skills needed by a food and beverage
director:
◦ Exceeding guests’ expectations in food and beverage
offerings and service
◦ Leadership
◦ Identifying trends
◦ Finding and keeping outstanding employees
◦ Training
◦ Motivation
◦ Budgeting
◦ Cost control
◦ Finding profit from all outlets
◦ Having a detailed working knowledge of the front-ofthe-house operations
The director of food and beverage reports
to the General Manager and is responsible
for the efficient and effective operation of
the following departments:
Kitchen
A hotel kitchen is under the charge of the
Executive Chef, or chef in smaller and
medium-sized properties
Some executive chefs are called Kitchen
Managers
Controlling costs is an essential part of
operations, as labor costs represent the most
significant variable costs, staffing becomes an
important factor
Financial results are generally expressed in
ratios, such as food cost percentage and labor
cost percentage
8
30-01-2013
Bars
Food Operations
Restaurant Managers are generally responsible
for the following:
◦
◦
◦
◦
◦
◦
◦
◦
Exceeding guest service expectations
Hiring, training, and developing employees
Setting and maintaining quality standards
Marketing
Banquets
Coffee service
In-room dining, minibars, or the cocktail lounge
Presenting annual, monthly, and weekly forecasts
and budgets to the food and beverage director
The profit percentage on beverages is higher than it
is on food items, making bars an important revenue
source
The responsibilities of a Bar Manager include the
following:
◦
◦
◦
◦
◦
◦
◦
Supervising the ordering process and storage of wines
Preparing a wine list
Overseeing the staff
Maintaining cost control
Assisting guests with their wine selection
Proper service of wine
Knowledge of beers and liquors and their service
Bars (cont’d)
Bar efficiency is measured by the pour/cost
percentage
Pour cost is obtained by dividing the cost the cost
of depleted inventory by sales over a period of time
Bars (cont’d)
◦
◦
◦
◦
◦
◦
◦
◦
◦
◦ Food and beverage directors expect a pour cost
between 16-24%
Hotel bars are susceptible to the same problems as
other bars
◦ All beverage service staff should receive training in
responsible alcoholic beverage service
◦ Another risk bars encounter is pilferage
◦ The best way to prevent these occurrences is to have a
good control system-which should include shoppers
Stewarding Department
Responsibilities of Chief Steward:
Cleanliness of back of the house
Cleanliness of glassware, china, and cutlery
Maintaining strict inventory control and
monthly stock check
Maintenance of dishwashing machines
Inventory of chemical stock
Sanitation
Pest control
Forecasting labor and cleaning supply needs
In a large hotel, there are several kinds of
bars:
Lobby bar
Restaurant bar
Service bar
Pool bars
Minibars
Night clubs
Sports bars
Casino bars
Catering and banquet bar
Catering Department
Catering:
◦ Includes a variety of occasions when people
may eat at varying times
Banquet:
◦ Refers to a groups of people who eat
together at one time and in one place
◦ Terms are used interchangeably
9
30-01-2013
Catering Department (cont’d)
The director of catering reports to the food and
beverage director, and is responsible for selling,
servicing, catering, banquets, meetings, and exhibitions
The director of catering must be able to:
Catering
◦
◦
◦
◦
◦
◦
Sell conventions, banquets, and functions
Lead a team of employees
Make up departmental goals and objectives
Set individual and department sales and cost budgets
Set service standards
Ensure that the catering department is properly
maintained
◦ Be creative and knowledgeable about food, wine, and
service
◦ Be very well versed in the likes, dislikes, and dietary
restrictions of various ethnic groups.
◦
◦
◦
◦
Catering Event Order
For meetings, a variety of room setups
are available depending on a client’s needs;
the most frequently selected meeting
room setups are:
Theater style
Classroom style
Horseshoe style
Dinner style
Catering Coordinator
◦ Prepared for each function to inform the client
and hotel personnel about essential information
to ensure a successful event
◦ Prepared based on correspondence with the
client and notes taken during the property visits
Manages the office and controlling the
function diary (now on the computer)
Must see that the contracts are correctly
prepared and checks on numerous lastminute details
Operates web-enabled technology tools,
such as New market International’s
Delphi System
Catering Services Manager
Room Service/In-Room Dining
Also know as the banquet event order
Duties include:
Directing the service of all functions
Supervising the catering house persons
Scheduling the banquet captains and approving staffing
Cooperating with the banquet chef to check menus
and service arrangements
Checking that the client is satisfied
Checking last-minute details
Making out client bills immediately after the function
Adhering to all hotel policies and procedures
Calculating and distributing the gratuity and service
charges
Coordinating the special requirements with the DOC
and catering coordinator
56% of all properties offer room service and
75% of airport properties provide room
service
Generally, the larger the hotel and higher the
room rate, the more likely they will offer
room service
Challenges include:
◦ Delivering orders on time-especially breakfast
◦ Making room service profitable/forecasting
demand
◦ Avoiding complaints of excessive charges
◦ Having well-trained and competent employees
10
30-01-2013
Trends
The use of branded restaurants instead of hotels
operating their own restaurants
Hotels opting not to offer food and beverage
outlets
Making outlets more casual
Using themes for a restaurant
Standardized menus
Converting one beverage outlet into a sportsthemed bar
Technology being used to enhance guest services
and control costs
More low-fat, low-carb menu items.
MODULE 5: TOURISM
What is tourism?
Definition of Tourism and Traveler
Composition of Travel Industry
Five Epochs/Age of Tourism
Tourism Organizations
Promoter of Tourism
Reasons People Travel
Social and Cultural Impact of Tourism
Ecotourism
What is tourism?
Tourism is a dynamic, evolving, consumerdriven force and is the world’s largest
industry
Tourism
offers the greatest global
employment prospects. This trend is caused
by the following factors:
◦
◦
◦
◦
The opening of border
An increase in disposable income and vacations
Reasonably-priced airfares
An increase in the number of people with time
and money
◦ More people with the urge to travel
Definition of Tourism
The word tourism did not appear in English
language until the early 19th century.
Tour – was more closely associated with the
ideas of voyage, with the idea of an individual
Tourist – by Webster’s Tenth Collegiate
Dictionary defines as “one that makes a tour
for pleasure or culture”
Cont’d…
Tourist – by United Nation (U.N) defines as
“is someone who goes from one place to
another beyond his normal commuting
distance”
Tourism – can be defined as the science, art
and business of attracting and transporting
visitors, accommodating them and graciously
catering to their needs and wants.
Definition of Traveler
U.S. Bureau of the Census – defines as “a
person must travel to a place at least 100
miles away from home and return”
U.S. Travel Data Center – defines as “a
traveler is any resident of the U.S. regardless
of nationality who travel to a place 100 miles
or more from home within the U.S. or who
stays away from home one or more night in
paid accommodations and who returns
homes within 12 months, except for
commuting to and from work or attending
school”
11
30-01-2013
Cont’d…
There are four criteria generally used to
determine a person’s status as a traveler:
◦
◦
◦
◦
Cont’d…
◦ Tourist – are those who spend at least 24
hours in a country and who come for almost
any purpose: business, holiday, study, health
reasons, visiting relatives and participating in
or attending sports
◦ Excursionists – are cruise passengers that are
focused on board their ship and day visitors
Distance traveled
Residence of the traveler
Purpose of the travel
Length of stay at destination
Because travel and tourism are important to
the economic health of so many nations of
the world, even the U.N. becomes involved
in establishing definition. It divides
international travelers into visitor and nonvisitor.
Composition of the Travel Industry
Cont’d…
The travel industry is made up of those
firms and people who serve the needs of
travelers
Professor Chuck gee, in his text “The Travel
Industry” divides the travel industry into
three segments:
◦ These are the firms and individuals who
provide services and supplies to the direct
providers and who are depend on the travel
market to a large part or are of their own
business. For examples:
Direct providers of
travel services
Hotel/motel
Restaurants
Camps
Cont’d…
Support services
Non-visitor: are border worker; those
who live in one country but work in
another.
◦ Are those firms and
people who are in
direct contact with
travelers and who
provide and serves
necessary for their
travel.They include:
◦ Direct providers of travel services
◦ Support services
◦ Tourism development
Visitor: tourist and excursionist
Travel agents
Airlines
Trains
Buses
Cruise lines
Car rental companies
Souvenir shops
Entertainment and
recreation centers
National and state parks
Credit card companies
Cont’d…
Tourism development
◦ This is a term used to describe individuals and
organization that directly and indirectly effect
the direct providers, the support services and
the individual’s traveler.
Furniture shop who supplies bed, table and chair to
the hotel
Food suppliers such as perishable and non perishable
food items for production kitchen
Linen supplier for tablecloth, bed linen, napkin and
etc.
12
30-01-2013
1) Pre-Industrial Revolution
(Prior 1840)
The Five Epochs/Ages of Tourism
The historical development of tourism has
been divided up into 5 distinct epochs or
age; four which parallel the advent of new
means of transportation.
◦
◦
◦
◦
◦
Pre-industrial Revolution (prior to 1840)
The Railway Age
The Automobile Age
The Jet Aircraft Age
The Cruise Ship Age
2) The Railway Age
Cont’d…
The first railroad was built in the United
States in 1830, but only 23 miles of rail
were laid by the end of year.
In 1869, rail journey across America which
enabled the journey to be completed in
six days. Before that, such a journey took
several months by wagons
To ensure customer comfort, railroads
had excellent dining cars and sleeping
berths
Railroads played a major role in the
development of the United States, Canada
and several others countries.
Prior to the advent of rail travel, tourist
had to journey by horse and carriage.
By comparison, the railway was more
efficient, less costly and more comfortable
3) The Automobile Age
Automobiles evolved from steam engines in
the late 1800s, when Karl Benz and Gottlieb
Daimler built a factory for internal combustion
engines, which is now Mercedes Benz
The call of the great open road and the
increased financial ability of more families to
purchase automobiles led to a tremendous
growth in travel and tourism
The automobile made more places accessible
to more people
In both the Mediterranean basin and the Orient,
travel was motivated by trade
However, commerce and the search for more
plentiful food supplies also stimulated travel
Medieval travel was mostly confined to religious
travel, particularly pilgrimages to various shrines
Muslims went to mecca and Christians went to
Jerusalem and Rome.
The Crusades began in 1095 and lasted for next
200 years, stimulating a cultural exchange that
was in part responsible for the Renaissance
4) The Jet Aircraft Age
First scheduled air service in the U.S. began
in 1915 between San Diego and Los
Angeles. To this day, well over 2000 of them
are still flying
Air transportation has further reduced the
cost per mile of travel, enabling millions of
people to become tourists
The speed of air transportation enables
vacationers to take intercontinental trips
13
30-01-2013
Cont’d…
5) The Cruise Ship Age
In order to remain efficient and cost
effective, major U.S. airline have adopted a
hub-and-spoke system which enables
passengers to travel from one smaller city to
another smaller city via a hub or even two
hubs.
Two main benefits:
More than 200 cruises offer a variety of
wonderful vacations. Travelers associate a
certain romance with cruising to exotic
locations and being pampered all day
Being on a cruise ship is like being on a
floating resort
Accommodations range from luxurious
suites to cabins that are even smaller than
most hotel rooms
◦ Airlines can service more cities at a lower cost
◦ Airlines can maximize passenger loads from small
cities, thereby saving fuel
Cont’d…
Attraction and distractions range from early
morning workouts to fabulous meals, with
nightlife consisting of dancing, cabarets and
possibly gambling
Day life might involve relaxation, visits to the
beauty parlor, organized games or simply
reclining deck chair by the pool reading a
novel.
Cont’d…
Nonstop entertainment includes language
lessons, cooking, dances, table tennis and
more
Casual ships cater to young couples, singles
and families with children and ship that
appeal to the upscale crowd draw a mature
clientele that prefers a more sedate
atmosphere, low-key entertainment and
dressing for dinner.
Tourism Organizations
World Tourism Organization
◦ A specialized agency of the United Nations
◦ The leading international organization in the
field
◦ plays a role in the:
Development of sustainable tourism
Development of universally accessible tourism
Continuation of economic development
Development of a global code of ethics for tourism
Cont’d…
The WTO and the World Travel & Tourism
Council declare the travel and tourism
industry to have the following characteristics:
◦ 24 hours a day, 7 days a week, 52 weeks a year
economic driver
◦ Accounts for 10.2% of the GDP = Gross Domestic
Product
◦ Employs 214 million people (7.8% of the global
workforce)
◦ $73.2 billion in spending in the U.S.
◦ Leading producer of tax revenues
◦ 4.6% annual forecasted growth until 2015
14
30-01-2013
Cont’d…
International Air Transportation
Association (IATA)
Cont’d…
Domestic Organizations
◦ Ministry of Culture, Arts, and Tourism of
Malaysia-responsible for the promotion of
tourism in Malaysia
◦ Coordinate the various governmental policies,
issues and program that effect tourism
development
◦ Global organization that regulates almost all
international airlines
◦ The purpose of IATA is to facilitate the
movement of people
and goods via a
network of routes and standardize waybill and
baggage checks and coordinate and unify
handling accounting procedures to permit
rapid interline booking and connection
◦ Also maintain stability of fares and rates
Promoters of Tourism
Cont’d…
State Offices of Tourism
◦ Malaysian Tourism Promotion Board @ Tourism
Malaysia-develop activities or event that can
increase the number of foreign tourists to
Malaysia
◦ Extent the average length of stay to increase
Malaysia’s tourism revenue
Cont’d…
Corporate Travel manager
Individuals employed by corporations, associations,
government agencies,
and other types of
organizations to coordinate the organization’s
travel arrangements
Travel and Tour Wholesaler
◦ Company or an individual who designs and
packages tours
Travel Agent
◦ Is the middle person who acts as a travel
counselor and sells on behalf of airlines, cruise
lines, rail and bus transportation, hotels and
auto rental companies
◦ Agent may sell individual parts of the overall
system or several elements such as air and
cruise tickets
◦ The agent acts as broker, bringing together the
client (buyer) and the supplier (seller)
◦ An agent has a quick access to schedule, fares,
and advice for clients about various destinations
Cont’d…
Other promoters:
◦
◦
◦
◦
◦
◦
◦
◦
◦
National Tourism Organization (NTO)
Travel Industry of America (TIA)
Convention & Visitors Bureaus (CVBs)
Pacific Area Travel Association (PATA)
Tour Operators
Travel Agencies
Travel Corporations
National Office of Tourism
Destination management companies
15
30-01-2013
Reasons People Travel
Cont’d…
Basic travel Motivations
There are many reasons why people travel
which are Travel for Pleasure and Travel for
Business
Travel for Pleasure – among the reasons
people travel for pleasure are visiting friends
and relatives, health, education, beauty,
religion, sports, festival, shopping, adventure
and gaming
The basic travel motivations can be divided
into four categories which are physical
factors, cultural motivator, interpersonal
motivator, and status and prestige motivator.
Examples
Physical Factors
Physical rest, sporting and beach activities,
healthful and relaxing entertainment
Cultural Motivator
The desire for knowledge of other
countries-music, arts, folklore, dances,
paintings and religion
Interpersonal Motivator
The desire to met new people, to visit
friends and relatives; the family or the
neighbor; to escape from the routine, or to
make a new friend
Status and Prestige Motivator
The desire for recognition,
appreciation and good reputation
Social and Cultural Impact
of Tourism
Cont’d…
Travel for Business
◦ Much business travel is a hard work, whether it
is travel in one’s own automobile, or in the
luxury of the first class seat abroad an airline.
◦ A goods portion of business travel is, however
mixed with pleasure
◦ Counted as business travelers are those who
travel for business purpose such as meeting; all
kind of sale, including corporate, regional,
product, for examples; convention; trade shows
and exposition; and combination of one
Tourism can have both positive and
negative impacts on communities
World tourism organizations (WTO)
recognize that tourism is a means of
enhancing international understanding,
peace, prosperity, and universal respect
for and observance of human rights and
fundamental freedom for all
Cont’d…
Provided the number of tourists is
manageable and they respect the host
community’s sociocultural norms and
values, tourism provides an opportunity
for social interactions
attention,
Ecotourism
Is focused more on individual values – it is
“tourism with a conscience”
Those who implement and participate in
ecotourism activities should follow the
following principles:
◦ Minimize impact
◦ Build environmental and cultural awareness
and respect
◦ Provide positive experiences for both visitors
and hosts
16
30-01-2013
MODULE 6:
THE RESTAURANT BUSINESS
Cont’d…
◦ Provide direct financial benefits and
empowerment for local people
◦ Raise sensitivity to host countries’ political,
environmental, and social climate
◦ Support international human rights and labor
agreements
The Restaurant Business
Classical Cuisine
Food Trends and Practices
Developing a Restaurant
Menu Planning Classifications
The Restaurant Business
Vital part of everyday life
As a society, we spend about 50% of our
food dollars away from home
The word restaurant comes from the French
word meaning restore
Multi-billion dollar business employing 12.5
million people
Classical Cuisine
North America gained most of its culinary
legacy from France through 2 main
events:
◦ French Revolution in 1793 – caused the best
French chefs of the day to lose their
employment because their bosses lost their
heads! Many chefs came to North America as
a result
◦ In 1784, Thomas Jefferson spent five years as
envoy to France, and brought a French chef to
the White House when he became a
president
Cont’d…
Cont’d…
Marie-Antoine Careme (1784-1833) is
credited as the founder of classical cuisine
Georges Auguste Escoffier (1846-1935) is
also noted for his many contributions to
cuisine
Introduced the Brigade System; streamline
workplace
There are five mother sauces:
◦ Béchamel, veloute, espagnole, tomato, and
hollandaise
Nouvelle cuisine
◦ Is a lighter cuisine and is based on simpler
preparations – with the aid of processors,
blenders, and juicers – using more natural
flavors and ingredients
17
30-01-2013
Food Trends and Practices
Developing a Restaurant
Chefs will need:
Menu Planning
Independent restaurant
There are six main types of menus:
Typically owned by one or more owners
– usually involved in the day-to-day
operation of the business
Not affiliated with any national brand or
name
They offer the owner independence,
creativity, and flexibility, but are
accompanied by the risk of failing
◦ A la carte menus – items are individually priced
◦ Table d’hote menus – a selection of one or more
items for each course at a fixed price
◦ Du jour menus – lists the items “of the day”
◦ Tourist menus – used to attract tourist’s
attention
◦ California menus – are so named because in
some California restaurants, guests may order
any item on the menu at any time of the day
◦ Cyclical menus – repeat themselves
Chain restaurant
A group of restaurants identical in market,
concept, design, service, food, and name
The same menu, food quality, level of
service, and atmosphere can be found in
any one of the restaurants – regardless of
location
The restaurant:
◦ Operating philosophy represents the way the
company does business
◦ Market is composed of those guests who will
patronize the restaurant
◦ Concepts are created with guests in mind and
should fit a definite market
◦ Location should also appeal to the target market
◦ Ambiance, or the atmosphere, that a restaurant
creates has both immediate conscious and
unconscious effects on guests
◦ A strong culinary foundation
◦ Multicultural cooking skills and strong
employability traits
◦ Additional management skills
Fine Dining
May be formal or casual and may be further
categorized by price, décor/atmosphere, level of
formality, and menu
Many serve haute cuisine – a French term
meaning “elegant dining,” or literally “high food”
Most are independently owned and operated by
an entrepreneur or a partnership
The level of service is generally high
18
30-01-2013
Theme Restaurants
A combination of a sophisticated specialty
and several other types of restaurants
Generally serve a limited menu
Of the many popular theme restaurants, 2
stand out:
◦ First, the nostalgia of the 1950s – as done in
the T-Bird and Corvette diners
◦ Second, the dinner house category – among
some of the better-known national and regional
chains are TGI Friday’s,
Houlihan’s, and
Bennigan’s
Celebrity Restaurants
Growing in popularity
Wolfgang Puck, Naomi Campbell, Michael
Jordan, etc.
Celebrity restaurants generally have an
extra zing to them – a winning
combination of design, atmosphere, food,
and perhaps the thrill of an occasional visit
by the owner(s)
Steak Houses
Adding additional value-priced items like
chicken and fish to their menus in order
to attract more customers
Upscale market leaders are Ruth’s Chris,
Morton’s, and Flemings
The mid-price market leader is Outback
Steakhouse
Casual Dining
Relaxed – includes restaurants from
several classifications:
◦ Mid-scale
casual
restaurants: Romano’s
Macaroni grill,The Olive Garden
◦ Family restaurants: Cracker Barrel, Coco’s,
Carrow’s
◦ Ethnic restaurants: Flavor Thai, Cantina Latina,
Panda Express
◦ Over the past few years, the trend in dinnerhouse restaurants has been toward more
casual dining
Family Restaurants
Evolved from the coffee shop style of
restaurant
Most are individually or family operated
Located in, or with easy access to, the
suburbs
Most offer an informal setting with a
simple menu and service designed to
please the whole family
Ethnic Restaurants
Majority are independently owned and
operated
Mexican restaurants are the fastest
growing segment
Our major cities offer a great variety of
ethnic restaurants, and their popularity is
increasing
19
30-01-2013
MODULE 7:
MANAGED SERVICES
Quick-Service/
Fast-Food Restaurants
Included in this category: Hamburgers,
Pizza, chicken, Pancakes, sandwich shops,
and delivery services
Increasing in popularity because of their
location strategies
Overview
Managed Services consist of:
◦
◦
◦
◦
◦
◦
◦
◦
◦
◦
Airlines
Military
Elementary and Secondary Schools
Colleges and Universities
Health care facilities
Business and industry
Leisure and recreation
Conference centers
Airports
Travel plazas
Overview
Airlines and Airports
Military
Elementary and Secondary Schools
Colleges and Universities
Responsibilities in Managed Services
Healthcare Facilities
Business and Industry
Leisure and Recreation
Trends
Cont’d…
Several features distinguish managed
services operations from commercial
foodservices:
◦ In managed services, it is necessary to meet
both needs of the guest and the institution
◦ In some operations, the guests may or may not
have alternative dining options available and are
a captive clientele
◦ Many managed operations are housed in host
organizations that do not have foodservice as
their primary business
Cont’d…
◦ Managed services operations produce food in
large-quantity batches for service and consumption
within fixed time periods
◦ The volume of business is more consistent and
therefore easier to cater
Because it is easier to predict the number of meals and
portion sizes, it’s easier to plan, organize, produce and
serve meals; therefore the atmosphere is less hurried
than that of a restaurant
Weekends tend to be quieter than weekdays in managed
services and overall the hours and benefits may be better
than those of commercial restaurants
Airlines and Airports
Airlines may either provide meals from
their own in-flight business or have the
service provided by a contractor
In-flight
foodservice
management
operators plan menus, develop product
specifications, and arrange purchasing
contracts
20
30-01-2013
Responsibilities in Managed Services
A foodservice manager’s responsibilities in a
small or midsize operation are frequently
more extensive than those of managers of
the larger operations
◦ Larger units have more people to whom certain
functions can be delegated, such as human
resources
◦ A number of support staff positions offer career
opportunities not only within managed services
but also in all facets of hospitality operations and
arrangements
Healthcare Facilities
◦ Hospital patients
◦ Long-term care and assisted-living residents
◦ Visitors and employees
Contractors: Companies that operate
foodservice for the client on a contractual
basis
Self-operators: Companies that operate their
own foodservice operations
Liaison Personnel: A liaison is responsible for
translating corporate philosophy to the
contractor and for overseeing the
contractor to make certain that he or she
abides by the terms of the contract
Cont’d…
Contractors have approximately 80% of
the B&I market
The size of the B&I sector is approximately
30,000 units
To adapt to corporate downsizing and
relocations, the B&I segment has offered
foodservice in smaller units, rather than
huge, full-sized cafeterias
Leisure and Recreation
Stadiums
Arenas
Theme parks
State parks
National parks
Zoos
Aquariums
Venue where food and beverage are
provided for large numbers of people
The service is given by tray, cafeteria, dining room,
coffee shop, catering, and vending
The main focus of hospital foodservice is the tray
line
Experts agree that because economic pressures will
increase, foodservice managers will need to use a
more high-tech approach to incorporate laborsaving sous-vide and cook-chill methods
Business and Industry (B&I)
Health care managed services are provided to:
Cont’d…
What makes this segment unique and fun is
the opportunity to be part of a
professional sporting event, a rock concert,
a circus, or other event in a typical stadium
or arena
21
30-01-2013
Stadium Points of Service
Trends in Managed Services
College and university foodservice
managers face increasing challenges
Declining enrollment
Increase in use of campus cards
Increase in food to go
Increase in use of foodservice carts at
vantage points
Dueling demands for managers from
students and administrators
Leisure and recreation facilities usually
have several points of service where food
and beverage are provided:
◦
◦
◦
◦
Hot dog stands
Restaurants
In the stands
Super boxes, suites, and skyboxes
MODULE 8: RECREATION,
THEME PARKS, & CLUBS
Cont’d…
24-hour foodservice
Business increase in healthcare and nursing
homes
Proliferation of branded concepts
Development of home meal replacement
options
Increasing use of fresh products
Recreation, Leisure, and Wellness
The word recreation is defined as the use of time
for therapeutic refreshment of one’s body or mind
Recreation allows people to have fun together and
form lasting relationships built on the experiences
that have enjoyed together
◦ This recreational process is called bonding
Leisure is best described as time free from work, or
discretionary time
Recreation, Leisure, and Wellness
Government-Sponsored Recreation
Commercial Recreation
Theme Parks
Clubs
Club Management
Types of Clubs
Noncommercial Recreation
Trends
Government-Sponsored Recreation
Various levels of government that
constitute
government-sponsored
recreation are intertwined, yet distinct, in
the parks, recreation, and leisure services
It raises revenue from income taxes, sales
taxes, and property taxes
22
30-01-2013
National Parks
Cont’d…
Additionally, government raises special revenue
from recreation-related activities such as
automobile and recreational vehicles, boats,
motor fuels, transient occupancy taxes
(TOT) on hotel accommodations, etc.
The National Park Service was founded in
1916 by Congress to conserve park
resources and to provide for their use by the
public in a way that leaves them unimpaired
The system’s current roster of 367 areas
covers more than 80 million acres of land
More than 272 million visitors go to the
parks each year
◦ The monies are distributed among the various
recreation-and leisure-related organizations at the
federal, state/provincial, city, and town levels
Commercial Recreation
Recreation management came of age in the
1920s and 1930s, when recreation and
social programs were offered as a
community service
Commercial recreation-often called eco- or
adventure tourism-provides residents and
visitors with access to an area’s spectacular
wilderness through a variety of guided
outdoor activities
Theme Parks
Create an atmosphere of another place and time; and
usually concentrate on one dominant theme around
which architecture
Landscaping costumed personnel, rides, show,
foodservice and merchandised are coordinated
Vary according to theme, which might be historical,
cultural, geographical etc.
Some theme parks and attractions focus on a single
theme, like the Langkawi Underwater world. Other
focus on multiple themes, like Sunway Lagoon
Walt Disney World
Includes:
◦
◦
◦
◦
Magic Kingdom
Epcot
MGM Studios
Animal Kingdom
25 lighted tennis courts, 99 holes of
championship golf, marinas, swimming
pools, jogging, bike trails, water skiing, and
motor boating
Magic Kingdom
More than 40 major shows and ridethrough attractions
7 lands include:
◦
◦
◦
◦
◦
◦
◦
Main Street USA
Adventureland
Frontierland
Liberty Square
Fantasy Land
Mickey’s Toontown Fair
New Tomorrowland
23
30-01-2013
Epcot
MGM Studios
Epcot is unique, permanent, and everchanging world’s fair with 2 major themes:
Future World and World Showcase
50 major shows, shops, restaurants, ridethrough adventures, and backstage tours
Combines real working motion picture,
animation, and television studios with
exciting movie attractions
Animal Kingdom
Focuses on nature and the animal world
around us
Guests can go on time-traveling rides and
come face-to-face with animals from the
prehistoric past to the present
Anheuser-Busch Companies
Largest corporate-owned theme/animal park
company in the United States
Leader in conversation and education
Dedicated to preserving marine life and uses
innovative programs to research various wildlife
dilemmas
Includes:
◦
◦
◦
◦
◦
◦
Sea World
Busch Gardens
Adventure Island
Water Country
Sesame Place
Discovery Cove
Universal Studios
Guided tours on its famous movie sets
Most formidable competitor facing the
Disney Corporation
One reason for Universal’s success is its
adaptation of movies into thrill rides
Another is their commitment to guest
participation
Largest movie studio and theme park is
Universal Hollywood
Hershey’s
1900s: Started producing mass quantities of
milk chocolate – resulting in immediate
success
The following decades brought many
product line expansions
◦ 1907: Milton Hershey opened Hershey Park as a
leisure park for employees of Hershey’s company
◦ 1908: the park started its soon-to-be huge
expansion
◦ The park continued to add more rides and
attractions; as the park continued to expand, the
company decided to open the park’s doors to the
public
◦ 1971: the park underwent redevelopment to turn
the small regional park into a large theme park
24
30-01-2013
Regional Theme Parks
Dollywood:
Cont’d…
◦ In 1961, a small attraction with a Civil War
theme called Rebel Railroad opened its door
to the public
◦ Started when Owen Godwin built an alligator pit
in his backyard
◦ After World War II, Godwin bought a 16-acre plot
located off Florida’s second most traveled highway
◦ Provides a close-up view of Florida’s animals in
their native habitat
This attraction is now known all across the world
as Dollywood
The name came about in 1986 when Dolly Parton
became a co-owner of the park
LegoLand:
Clubs
Private clubs are places where members gather for
social, recreational, professional, and fraternal reasons
Many clubs are designed around a housing
development where the neighborhood can utilize the
services of the club (golf, tennis, pool)
Many of today’s club are adaptations of their
predecessors – mostly from England and Scotland
The Royal & Ancient Golf Club of St. Andrews,
Scotland, founded in 1758, is recognized ad the
birthplace of golf
Club Management
Articles of incorporation and bylaws determine
structure:
◦ Members:
Members elect the officers and directors of the club
The club president is the lead member or official in policymaking
The vice president is groomed for the role of president
◦ Executive Committee:
Activities, grounds, and funding
◦ Treasurer:
Gives advice on financial matters
◦ General Manager
Day-to-day operation
Asset management
Preserving and fostering the club culture
◦ Secretary:
Records minutes of meetings
Takes care of correspondence
Similar to hotel management
◦ The main difference between club management and
hotel management is that with clubs the guests feel
as if they are the owners
◦ Another difference is that most clubs do not offer
sleeping accommodations
Members pay an initiation fee and annual dues
Club Managers Association of America:
◦ Goal is to advance the profession of club
management by fulfilling the educational and related
needs of the club managers
Club Management Structure
Wet n’ Wild:
◦ First major water park in the U.S.
◦ In 1998, owner George Millay sold the Orlando
Park to Universal Studios Recreation Group
◦ Owned and operated by the Lego Group
◦ Marketed toward young families
GatorLand:
Country Clubs
Nearly all country clubs have one or more
lounges and restaurants, and most have
banquet facilities
Country clubs have 2 or more types of
membership
◦ Full membership enables members to use all the
facilities all the time
◦ Social membership only allows members to use
the social facilities
◦ Other forms of membership can include
weekday and weekend memberships
25
30-01-2013
City Clubs
Predominantly business oriented
Vary in size, location, type of facility, and
services offered
Some of the older, established clubs own
their own buildings – others lease space
Other Types of Clubs
Professional Clubs: For people in the same
profession
Social Clubs: Allow members to enjoy one
another’s company; members represent many
different professions, yet they have similar
socioeconomic backgrounds
Athletic Clubs: Gives city workers and residents
an opportunity to work out, swim, play squash
and/or racquetball, and so on
Dining Clubs: Generally located in large city
office buildings
University Clubs: Private clubs for alumni or
alumnae
Cont’d…
Military Club: Cater to noncommissioned
officers and enlisted officers
Yacht Clubs: Provides members with moorage
slips, where their boats are kept secure
Fraternal
Clubs: Includes many special
organizations, such as the Veterans of Foreign
Wars, Elks, and Shriners
Proprietary Clubs: Operate on a for-profit basis;
owned by corporations or individuals wanting
to become members purchase a membership,
not a share in the club
Noncommercial Recreation
Noncommercial recreation includes:
◦ Voluntary organizations
Which are nongovernmental, nonprofit agencies,
serving the public-at-large or selected elements with
multiservice programs that often include a substantial
element of recreational opportunity
◦ Campus Recreation
Programs include involvement by campus recreation
offices, intramural departments, student unions,
residence staffs, or other sponsors
Trends
Cont’d…
◦ Armed Forces Recreation
Provides well-rounded welfare and recreational
programs for military personnel
◦ Employee Recreation
Promotes employee efficiency through recreational
activities
◦ Recreation for special populations
Involves professionals and organizations who serve
groups such as those with mental illness, mental
retardation, or physical challenges
An increase in all fitness activities
A surge in travel and tourism
In addition to a continuation of traditional
recreation and leisure activities, special
programs targeted toward at-risk youths and
latchkey children are also being developed
Several additional products in the commercial
sector
Additional learning and adventure opportunities
for the elderly, such as Elderhostel
26