Chapter 1 Welcome to the Hospitality Industry Introduction

Chapter 1 Welcome to the Hospitality Industry Introduction to Hospitality, Fourth Edition John Walker © 2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to: n n Describe the characteristics of the hospitality industry Explain corporate philosophy Discuss why service has become such an important facet of the hospitality industry Suggest ways to improve service

The Pineapple Tradition n Symbol of welcome, friendship and hospitality Recognized internationally Foundation for concept of “SERVICE”

Hospitality and Tourism n n Largest and fastest growing industries Common dynamics n n Delivery of services and products Customer and guest impressions are critical

Scope of Hospitality and Tourism Industry n Travel n n n n Air Cruise Rail Coach Auto Ecotourism Lodging n n Hotels Motels n n Meetings, Conventions and Expositions Restaurants Managed services Recreation n n Attractions Gaming Parks Recreation

Scope of the Hospitality-Tourism Industry

Characteristics of the Hospitality Industry n n Product is intangible and perishable No such thing as business hours Hospitality operations run on a 24 hour basis all year round Characterized by shift work

Corporate Philosophy n Philosophy… n n n Shift towards greater employee empowerment Strong links to TQM Service philosophy is a way of life

Corporate Culture n Culture… n n Overall style and feel of the company Mission Statement n Central purposes, strategies and values

Corporate Culture n Goal n n Objective n n Broad statement geared towards accomplishment Quantification of goals Strategy/Tactics n Actions needed to reach goals

Reasons Behind Inconsistency in Service n n Education system does not teach service Little priority on training in service Over-reliance on Technology Lack of motivation

“ 7 Deadly Sins of Service” 1. 2. 3. 4. 5. 6. 7. Apathy Brush-off Coldness Condescension Robotics Rule book Runaround

For Success in Service: n n Focus on the guest Understand the role of the guest-contact employee Weave a service culture into education and training systems Thrive on change

Moments of Truth n Examples in a restaurant n n n Guest calls for reservation Guest tries to find restaurant Guest parking Guest welcome Guest is told table is not ready Guest goes to lounge for a cocktail

Trends n n n n n Globalization Safety and security Diversity Service Technology Legal issues Changing demographics Price-value Sanitation

Economic Principles n DEMAND CURVE: a graph showing how much of a given product people will be willing to buy at different prices Price Demand Quantity Demanded

Economic Principles n n "Law" of Demand: As the price of a good goes up, the quantity demanded of that good goes down demand curves slope downward Price Demand Quantity Demanded

Economic Principles n n Changes in Demand: Movement along the demand curve Shift in Demand: The whole curve moves up or down Price Demand Quantity Demanded