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CHAPTER 1
OVERVIEW OF HOSPITALITY INDUSTRY
 LEARNING OUTCOME

1. Define hospitality industry and provide at least one specific example of both
successful and unsuccessfully hospitality you have experienced.

2. Identify the basic components of the hospitality industry.

3. Explain the relationship between guest satisfaction and employee responses

during a service encounter.

4. Compare the benefits of obtaining a formal education and acquiring

experience.

5. Recommend ways to ensure learning and growth throughout a hospitality

career.

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 WHAT IS HOSPITALITY?

• the reception and entertainment of guests, visitors or strangers

with liberality and goodwill.

‘Receiving guests in a generous and cordial manner’

‘Creating a pleasant or sustaining environment’

‘Satisfying guest’s needs’

‘Anticipating a guests’ desire’

‘Generating a friendly and safe atmosphere’

• hospitality comes from the word “hospice” – House Of Rest for

travelers
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 AN AGE OLD INDUSTRY

• The hospitality industry began as an outgrowth of travel in the conduct of trade.

• Back to 3000 B.C, Sumerians traders needed shelter, food and drinks and
enterprising arranged ways to meet those needs.
• Later, trade routes expanded, and hospitality establishments flourished.
• Historian speculate that the first overnight lodging structures were erected along
Mid-Eastern trade and caravan routes around 4000 years ago.
• In many countries, the quality of services varied according to fees paid and the
location of an establishment. Some were bad, some were good.
• Fine service could also be found in ancient Rome and influenced the hospitality
industry.
• Hospitality terminologies were derived from Latin. Hospe means host or guest.
Hospitium means a guest chamber, inn or quarters. Other words include
hospice, hostel, hospital and hotel
• With the fall or Roman Empire, Roman Catholic Church kept the hospitality
industry alive by encouraging religious pilgrimages between monasteries and
cathedrals throughout Europe. Hostel were built, travelers were expected to
contribute to the church as token of appreciations.
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 Remain same until today  Guests Are Always Welcome

 Offers travelers a home away from home

 It is also the largest and fastest growing industry in the world

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 PINEAPPLE
 Universal symbol for hospitality
 Signify that visitors are
welcomed to the place
 Displayed at the doors/gates
 Symbol of welcome, friendship,
hospitality

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 Foodservice Transportation
Industry Industry
Components

The Hospitality Merchandise

Travel
Industry Components
And Tourism

Recreation,
Lodging sports and
Industry entertainment
Components Components

THE HOSPITALITY AND TOURISM NETWORK

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No 1 Best Hotel:
Mahali Mzuri , Masai Mara,
Kenya

First World Hotel-Currently

the largest hotel with 7,350
rooms

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No 1- Most famous Coffee
Chain

Dewakan
Malaysia Best Restaurant
2021

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 CHARACTERISTICS OF THE
HOSPITALITY INDUSTRY
 Business Open 365 Days a year and 24 hours a
day.
 Staff often work 10 – 12 hours a day. Evening and
weekend are included in the work week.
 The difference between hospitality business and
other business sectors is “we provide service that
fulfill the guest satisfaction”.

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 SERVICE
• Service is the most important product of the hospitality industry.
• The intangibility of service makes seeing hospitality as an industry a little
different for many people. Unlike the manufacturing industry which produce
tangible product that usually can be handled, stored and standardize.
• The main business of the hospitality industry is to create memorable
experiences through furnishing services.
• Delivery of an intangible product naturally leaves room for conflicting
perceptions of its guests. A once in a lifetime experience for a guest is often
a routine for an employee.
• As service fails to meet expectations, guest's time, money and emotion will
lost.
• Guests perceived good services on the basis of their own expectations
of the hospitality staff.
• Value is based on the customers’ expectations in relation to how much they
spend for the service and how much they would spend for a similar service
elsewhere.
• Most guests want quality service at a fair price.
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 THE SERVICE ENCOUNTER
• Service encounter is the period of time in which a customer directly
interact with a service.
• Guests measure the quality of service by comparing the services received
with what they expected to receive.
• Five general elements comprise the scale by which service may be
judge:
1. Tangibles
2. Reliability
3. Responsiveness
4. Assurance
5. Empathy

• Interactions between employee guest that influence the guest‘s

1. Employee response to service delivery system failure.

2. Employee response to customer needs and requests.
3. Unprompted and unsolicited employee actions.
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 PRINCIPLES FOR ACHIEVING
GUEST SATISFACTION
1) Recognize your guest.
10 Knutson’s Principles
2) Make a positive first impression.
3) Fulfill your guests’ expectation.
4) Reduce the effort required of the customer.
5) Facilitate customer decision making.
6) Focus on the customers’ perception.
7) Avoid violating the customers’ unspoken time limit.
8) Create memories the customer will want to recapture.
9) Expect your customer to remember bad experiences.
10) Put the customer in your debt.

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 CORPORATE PHILOSOPHY

 Philosophy is a theory and attitude that acts as a guiding principle for

behavior
 Corporate Philosophy is a must in any organization.
 It helps the member to act accordingly, in order to achieve company
missions and visions.

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PURSUING OPPORTUNITIES IN
HOSPITALITY
• As a service-oriented industry, the hospitality depends on people
with interpersonal skills-both natural and developed.

• The hospitality industry is a labor-intensive that relies on a large

workforce to meet the needs of its guests.

• Of all possible industries to choose from, hospitality is one of the

most exciting and accessible. A hard-working individuals have many
opportunities for quick advancement.

• The hospitality industry also affords a vast array of entrepreneurial

opportunities. An entrepreneur is an individual who creates,
organizes, manages and assumes the risks of a business or
enterprise.

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 IDENTIFYING REQUIRED
SKILLS AND ABILITIES
Allocates time
Allocates money
Resources Allocates material and facilities resources
Allocates human resources
Acquires and evaluates information
Information Organizes and maintains information
Interprets and communicates information
Uses computers to process information
SCANS Participate as member of a team
Competencies Teaches others
Interpersonal Serves clients and customers
Exercises leadership
Works with cultural diversity
Understands systems
Systems Monitors and correct performance
Improves and designs systems
Select technology
Technology Applies technology to task
Maintains and troubleshoots technology 19
 IDENTIFYING REQUIRED SKILLS AND ABILITIES

Reading
Writing
Basic Skills Arithmetic
Mathematics
Listening
Speaking
SCANS Creative thinking
Foundation Decision making
Skills Thinking Skills Problem solving
Seeing things in the mind’s eye
Knowing how to learn
Reasoning
Responsibility self-esteem
Social
Personal Qualities Self-management
Integrity/honesty

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 Through
Through Hotel, Restaurant &
Formal Education Tourism
Association

Meeting
The Requirements

Through
Through
Lifelong
Informal Education
Learning

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 CAREER PATHS WITHIN THE
TOURISM INDUSTRY
Senior
Post Grad
Executive
University
Undergrad Manager

Career Supervisor

College
Vocational Front Line

Grad 12
Private Entre-
Training preneur
School
Grad 11

Paths within education system and industry ______________

Paths into industry __________________________________________________

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 CAREER PATH IN TRAVEL AND
TOURISM
 ticket agent
 sales representatives
 sales manager
 projects operations
 departure manager
 arrival manager
 station manager
 vice president

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CAREER PATH IN RESTAURANT
INDUSTRY
 Food server
 Shift leader
 Management trainee
 Assistant manager
 Manager
 General manager
 Regional manager
 Vice president
 President
 Chef
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CAREER IN MANAGED SERVICE
 Assistant foodservice director
 Food service director
 General manager
 District manager
 Vice president
 President

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CAREER PATH IN LODGING
MANAGEMENT
 Management Trainee
 Assistant Department Head
 Department Head
 sales and marketing manager
 food and beverage manager
 room division manager
 assistant controller

 Food and Beverage Director

 Controller
 General Manager
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 CAREER PATH IN CLUB
MANAGEMENT
 dining room manager
 catering manager
 food and beverage manager
 club manager
 general manager

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 CAREER PATH IN CONVENTION
MANAGEMENT
 Coordinator
 Event Manager
 Sales Manager
 Assistant General Manager
 General Manager

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End of Chapter 1
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