Introducing Hospitality & Tourism Alana Dillette M.Sc. dilleak@auburn.edu 332 Spidle Hall
Chapter Objectives Describe The 8 sectors of the tourism industry The characteristics of the hospitality industry The interrelated nature of hospitality and tourism Explain corporate philosophy Discuss why service has become such an important facet of the hospitality industry Suggest ways to improve service
Does anyone know what the symbol for hospitality is?
The Pineapple Tradition A symbol of welcome, friendship, and hospitality 17 th Century Pineapples were brought back from the West Indies by early European explorers The favored fruit of royalty and the elite Today, it is globally recognized as a symbol of hospitality
Why Hospitality & Tourism? World Tourism Organization (WTO) 2012 (Travel & Tourism s total contribution) US$6.6 trillion in GDP, US$760 billion in investment and US$1.4 trillion in exports Employs 260 million people i.e.,1 in 11 jobs United States ( AH&LA) Total lodging revenue = $155.5 billion & Tourism generated $855.4 billion in sales (excluding international passenger fares on U.S. airlines). Resident and international travelers spent $2.3 billion a day Tourism pays $129 billion in federal, state, and local taxes The travel and tourism industry pays $200.9 billion in wages and salaries Employs 1.8 million hotel property workers In Alabama (Auburn/Opelika Tourism Bureau) 2012 $10.1 Billion for Alabama $286 million for Lee County Providing over 169,000 jobs
Hospitality vs. Tourism What is the difference?
The Interrelated Nature of Hospitality and Tourism Tourism = TRAVEL Tourism comprises the activities of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes. Hospitality = SERVICE Hospitality includes a wide range of businesses, each of which is dedicated to the service of people away from home.
The Interrelated Nature of Hospitality and Tourism Hospitality The warm and generous reception of guests at a particular moment in time during the travel experience Service quality Moments of Truth can be good or bad. Tourism The travel experience of a destination Destination image (local tourism bureau) Transportation Accommodation Food & Beverage Experiences Retail Shops Entertainment Banks Hospitals
Tourism How many ways can you slice this pie? In groups, write down all the different sectors you can think of that would make up the umbrella of tourism.
The 8 sectors of Tourism
Hospitality is based on selling a service to a guest. What makes this so difficult?
Characteristics of the Hospitality Industry Intangibility There is no test drive Inseparability Production and consumption happen simultaneously Perishability Unsold rooms Open 365 days/year & 24 hours/day Four basic shifts 7:00AM to 3:00PM 10:00AM to 6:00PM 3:00PM to 11:00PM 11:00PM to 7:00AM
Success in Service Why is this important? Approximately 70% of U.S. & Canadian economies are engaged in the service industry In the hospitality industry we buy loyalty with service Who is the guest? External customers- Your guests ultimately measure the success of a company Internal customers-your employees benefit from the output of work by their coworkers
Success in Service For success in service we need to: Focus on the guest. Understand the role of the guest-contact employee. Weave a service culture into education and training systems. Emphasize high-touch instead of just high-tech. Thrive on change.
Corporate Philosophy Corporate philosophy embraces the values of the organization Shifts emphasis from the production aspect of business to the focus on guest-related services including ethics, morals, fairness, and equality. The philosophy of do whatever it takes is critical for success. Corporate Culture refers to the overall style or feel of the company, or how people relate to one another and their jobs. A mission statement is a statement of central purpose, strategies, and values of the company. It should answer the question What business are we in? A goal is a specific target to be met, objectives or tactics are the actions needed to accomplish the goal Total Quality management is a strategy used to improve service to guests by empowering employees to give service that exceeds guest expectations. Training Counseling Providing resources Allowing creative freedom
Total Quality Management Total quality management (TQM) is a continuous process that works best when managers are also good leaders It is a participatory process that empowers all levels of employees to work in groups to establish guest service expectations and determine the best way to meet or exceed those expectations The difference between TQM and quality control (QC) is that QC focuses on error detection, whereas TQM focuses on error prevention
Malcolm Baldrige National Quality Award The highest level of national recognition that a U.S. company can receive The Ritz Carlton The only hospitality company to win two awards (1992 & 1999)
Moments of Truth These are guest encounters Hospitality organizations encounter thousands of moments of truth every day What are some examples of Moments of Truth that you can think of? A guest calls the restaurant for a table reservation A guest tries to attract the bartender s attention for a cocktail because there are no seats available A server takes an order A server brings the check A guest departs the restaurant
Class Activity Pick your favorite hospitality company and search the Internet for their mission statement. Using this information, discuss with your group ways in which the company can ensure to live out it s mission statement. Develop a specific strategy to ensure quality customer service. This strategy must include at least four points. Develop a 5-step model to ensure that the leaders of the company are being kept accountable for this mission of the company. Use TQM to help you, but be creative in your steps.
The Disney Approach to Guest Service Mission Statement: We create happiness. The key elements of Disneyland guest services include: Hiring, developing, and retaining the right people Understanding their product and the meaning of the brand Communicating the traditions and standards of service to all cast members Training leaders to be service coaches Measuring guest satisfaction Recognizing and rewarding performance
Disney Service Model (Strategy) It begins with a smile Make eye contact and use body language Respect and welcome all guests Value the magic Initiate guest contact Creative service solutions
Disney s 5 Steps of Leadership 1. Provide clear expectations and standards 2. Communicate these expectations through demonstration, information, and examples 3. Hold cast members accountable for their feedback 4. Coach through honest and direct feedback 5. Recognize, reward, and celebrate success
Careers in Hospitality & Tourism A career path does not always go in a straight line Progression means that we advance from one position to another The path to General Manager in a hotel may go through a combination of positions because it is better to have experience in several areas (cross training)
Salaries in Hospitality and Tourism Hospitality Salaries President of Chain Lodging Company $250,000-$500,000 President of Chain Restaurant Company $175,000-$450,000 VP of a Lodging Company $150,000-250,000 Hotel/Resort General Manager $75,000-175,000 Country Club General Manager $100,000-350,000 Vice President of a Restaurant Company $75,000-150,000 Restaurant General Manager $40,000-80,00 Hotel or Resort Rooms Division Director $50,000-80,000 Hotel/Resort Food and Beverage Director $55,000-100,000 Hotel/Resort Human Resources Director $50,000-80,000 Hotel/Resort Catering Manager $55,000-100,000 Assistant Restaurant Manager $50,000-90,000 Hotel Front Office Manager $25,000-40,000 Hotel/Resort Executive Housekeeper $30,000-60,000 Hotel/Resort Assistant Food and beverage Manager $30,000-75,000 Hotel/Resort Executive Chef $35,000-60,000 Restaurant chef $40,000-90,000 Front Desk Agent $30,000-80,000 Servers $16,000-25,000 Cooks $20,000-30,000
Career Goals The hospitality industry is a service industry; we take pride in caring about others Experience is KEY! Internships Part Time Jobs Volunteer Explore different areas! Recruiters look for service oriented people who walk the talk Good work experience Involvement in on-campus activities Positive attitude Good GPA
Get Involved NOW! Very important to be involved in on-campus activities Professional hospitality and tourism organizations Participate in organizational events Participating shows your commitment to the industry Join Professional Organizations CHRIE the global advocate of hospitality and tourism education NRA National Restaurant Association AH&LA American Hotel & Lodging Assn. ISES International Special Events Society PCMA Professional Convention Management Assn. NSMH National Society of Minorities in Hospitality
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