What is the hospitality industry – Make a simple introduction

The Hospitality Industry

The hospitality industry is a broad category of fields within the service industry that includes lodging, food, and drink service, event planning, theme parks, travel, and tourism. It includes hotels, tourism agencies, restaurants, and bars.

The symbol of hospitality

The core areas of the hospitality industry

4 core areas:

1. Lodging – covers a diverse range of properties, luxury palaces, boutiques hotels, bed and breakfasts, camping grounds and hostels
2. Food and Beverage (F&B) – the largest sector in hospitality, made up of properties delivering food, snacks, drinks for immediate consumption, on or off the premises
3. Tourism – comprises means of transportation to move travelers from one place to another, includes airlines, cruise ships, buses, trains, etc
4. Recreation – establishments that focus on entertaining guests, such as movie theatres, fun parks, theme parks, etc

Working in Hospitality

Skills for the Hospitality Industry

The characteristics of the hospitality industry

• Intangible service
• Perishable
• Inseparable
• Simultaneous
• Variable
• Shift work
• Graveyard shift
• Guest satisfaction

Importance of the hospitality industry

The hospitality industry accounts for 10.4% of the global GDP and is predicted to increase by a further 10% in the next 10 years.

• Contributes to local economies – tourists spend money in retail, dining, entertainment venues, etc
• Funds infrastructure development – building of roads, bridges, amenities such as airports, etc
• Provides jobs – 313 million jobs worldwide or 9.9% of total employment
• Increase cultural awareness

Importance to local economies

How fast is the hospitality industry growing?

Key statistics:

1. International arrivals have increased from 900m to more than 1.3b over a span of just 10 years.
2. The World Travel and Tourism Council (WTTC) names the hospitality industry’s importance as the main driver in global value creation.
3. The hospitality and travel industry accounts for one out of every ten employment opportunities.
4. The overall growth in the travel and tourism industry was 3.9 percent in 2018 and was outpacing the global economy (3.2 percent).

What trends are driving the growth?

1. The booming global economy continues to create a positive momentum in the sector by contributing to the overall income per capita.
2. Airfares have consistently become more affordable over the last three decades.
3. Corporate travel is yet another contributor to the healthy outlook and is projected to keep growing.
4. Hotel operators are seeking to expand their portfolios through targeted acquisitions of smaller regional chains.

Service standards – Go the extra mile

1. Strive for Loyalty
2. Consistency, consistency and more consistency
3. Set clear expectations (and go all out to exceed them)
4. Build a team environment
5. Lead by example
6. Carve a niche
7. Work on an effective PR strategy
8. Reward loyalty
9. Master the social media game
10. Skill is key

Moments of truth

Moments of truth are simply any interaction during which a customer forms an impression of your brand. In other words, these are the touchpoints when your customers either fall in love with your product or service or turn away and leave.
Moments of truth have an immediate and long-term impact on buying behavior. Customers will remember this moment and how it made them feel. This can influence loyalty depending on the impression it left on the whole experience.

Do you want to work in hospitality?

Job titles in the hospitality industry

Hotel Management

A hotel general manager makes sure that a hotel is running smoothly. His job involves interacting with guests, managing staff, handling the finances at the property, and much more. A hotel general manager needs to have strong business, management, and interpersonal skills.

Other related jobs include:
Back Office Assistant / Catering Sales Manager, Director of Hotel Sales / Group Sales Manager / Guest Room Sales Manager / Sales and Marketing Manager, etc

Event Planning

Many hotels have conference rooms or spaces that they rent out for various events, ranging from conventions to weddings. A wedding planner works with a company or an individual to arrange the event and ensures that it runs smoothly.

Other related jobs include:
Events Manager / Executive Conference Manager / Meeting Coordinator / Meeting Planner / Special Events Manager etc

Food Operations

An executive chef is a managerial role that involves a lot of work behind the scenes in the hospitality industry. He oversees the food operations in restaurants, casinos, hotels, or other venues that serve food. He typically orders all the food, plans the meals, and prepares food in the kitchen. Most people work their way up to executive chef from entry-level roles.

Other related jobs include:
Café Manager / Catering Manager / F&B Manager / Restaurant Manager / Pastry Chef / Sous Chef etc

Front-Of-The-House

A concierge interacts directly with customers, providing them with various services. He may respond to requests or anticipate what customers might need. These could range from providing a babysitter to getting tickets to a show to suggesting a restaurant. At some hotels, this is an entry-level job. However, some luxury hotels require concierges with hospitality experience, having problem-solving skills, and the ability to handle difficult patrons.

Other related jobs include:
Guest Relations Manager / Hotel Receptionist etc

Ethics

Ethics refers to rules of behavior that are based on moral obligations and duties. It distinguishes between what is right from what is wrong, and encourages people to do the right thing.

Values that define ethical principles include honesty, trustworthiness, integrity, fairness, keeping promises, fidelity, caring for others, accountability, the pursuit of excellence, leadership, responsibility, and respect for others.

All professionals should possess these values as they are critical in the success of any organization. (Stevens, 2008)

Examples

• 1898 Caesar Ritz, his hotel manager and chef were discharged from London’s Savoy Hotel for accepting under-weighed food deliveries and extorting commissions from supplies, using this for their own gains.
• Miss Walton worked for over 13 hours for three consecutive days as a housekeeper at the Nottingham Gateway Hotel. She informed her employer of her pregnancy and took 3 days of sick leave. Her work was re-allocated to another employee. The tribunal found that Miss Walton was unfairly treated due to her condition.

Challenges of the hospitality industry

1. Climate change – the threat of climate change will adversely affect many major tourist destinations. The main challenges are the lack of predictability and the magnitude of such events, and how fast the industry can respond and adapt.
2. Industry consolidation – merges and acquisitions of corporations have led to increasing concentration of size and
   power among the top players. While the ultimate goal is to create value through cross-organizational synergies, the
   diverse structures and varieties of brands could make competition hard for new entrants to the market.
3. New competition from tech and digital players – technology companies such as Google or Facebook are offering technological solutions and creating novel markets to attract new types of customers. Their control over the data related to customer behaviour both off and online could oust traditional incumbents into niche markets.
4. Shortage of skilled talent – as the industry requires a huge number of the right skilled labour, this also poses a concern for owners of establishments. Attracting and retaining young hospitality professionals require a lot of flexibility and attention from industry players
5. Covid-19 and its impact – Covid-19 is affecting the health of hundreds of thousands of people worldwide, and the measures taken to curb the pandemic are having an unimaginable impact on the global economy. Undoubtedly, the impact being felt by the hospitality industry is massive – factors including the migration of the hospitality workforce and the pause on travel, tourism and F&B services.
6. The pandemic has introduced many variables or changes that are fogging up the prospects of the hospitality industry. Uncertainties include changes in customer needs, perceptions and expectations and travel patterns means industry players must review their existing service offerings to adapt.

Case Study 1: Mexico

Mexico is often cited as an example of successful tourism development. In the 196Os, Mexico began investing heavily in tourism development in Acapulco. The Mexican government offered incentives for developers to build hotels and resorts, but it did not regulate growth in Acapulco. The result was an outbreak of construction of elaborate, exclusive hotels which led to overbuilding, environmental filth, and marginalization of native Acapulquenos. Thousands of poor.

Mexicans flooded Acapulco in the 1960s and 70s in search of work. The city was not capable of handling such a large number of people and the adjacent town just grew. The lean-tos dotting the hills are unserviced by sewers, potable water, electricity, schools, or recreation facilities. Public health is poor. An open canal carries runoff to the bay, while the hotels plan and build their own services.’”

After reaching its peak in the mid-1970s the level of tourism declined, and Mexico was left with a city full of problems, which taught it some valuable lessons. Cancun, Ixtapa, and Huatulco are products of these lessons. These three resort towns were conceived, planned, and built under the watchful eyes of FONATUK (Fondo Nacional de Foment0 a1 Tourismo), Mexico’s tourism development authority.

FONATUR, aided by $50 million in international funds, developed the entire resort town of Cancun solely to accommodate tourists and make money for the government of Mexico. Infrastructure development in Cancun included building roads, airports, water and drain systems, schools and public housing, and creation of a local municipality including a police system.'” Mexico’s vigilance and sound planning have made tourism a successful industry and an important contributor to Mexico’s GDP (2.5% of total).”

References:

https://www.mdpi.com/1660-4601/17/20/7366

https://www.unwto.org/statistics/country-fact-sheets

https://en.wikipedia.org/wiki/Hospitality_industry