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The Introduction to the Hospitality Industry

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Hospitality Industry vs. Tourism

• Hospitality Industry – Collection of businesses providing accommodation and/or food and beverage services for people who are away from home.

• Tourism is a wider group of economic activities connected to the hospitality industry.

• See p. 4 ex. 3 of the Course Book. • What types of organizations belong to both

industries?

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Travel & Tourism Industry

• Lodging Operations

• Transportation Services

• Food & Beverage Operations

• Specialist Shops

• Leisure Activities

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Overview of the travel and tourism industryTravel and tourism

industry

Lodging Operations

TransportationServices

Food and BeverageOperations

Restaurant

Lodging Properties

Retail Stores

Vending

Catering

Snack bars

Cruise ships

Bars/Taverns

Banquets

Contract Food Services

Retail Stores

Gift Shops

Souvenir Shops

Arts/Crafts Shops

Shopping Malls

Markets

Miscellaneous Stores

Activities

Recreation

Business

Entertainment

Meetings

Study Trips

Sporting Events

Ethnic Festivals

Cultural Events

Seasonal Festivals

Gaming

Ships

Airplanes

Autos

Buses

Trains

Bikes

Limousines

Hotels

Motels

Resorts

Timeshare Hotels

Conference centers

Camps

Parks

Casinos

Convention hotels

Cruise ships

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Who Is a Tourist?

According to UNWTO (2000) an international tourist is:“a visitor who travels to a country other than that in which s/he has his/her usual residence for at least one night but no more than one year, and whose main purpose of visit is other than the exercise of an activity remunerated from within the country visited.“

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Who Is a Tourist?The following criteria has to be met:• The trip should be to another place than where the

person lives.• The duration of the trip should be no longer than 12

months, but not shorter than 24 hours.• The purpose of the visit can be work (business trip) or

leisure. But the person should not be earning money in the place of visit.

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Why Is Tourism Important?

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The Importance of Tourism

• Provides lots of employment opportunities for local people.

• Funds a large percentage of a country’s gross domestic product (GDP).

• Brings foreign currency through the goods and services provided to foreign visitors, thus improving the balance of payments.

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Promotion of Tourism

• Contributes to country’s economy• Government establish tourist organizations• Advertise countries overseas

Video example of promotion of a country.

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Homework

Activity 4, p. 6.

1. Company's Name & Ownership Details (government or privately owned?)2. Company's Website (if they do not have a website, then postal address or other location information)3. Analyze what is the benefit and detriments that tourism brought to this region.4. One paragraph description of three types of activities the company conducts in order to support local tourism.

Email results: erica.liu@lrjj.cn

By Tuesday, Marh 9th 16:00

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Definition of the Hotel

An establishment held out by the proprietor as offering food, drink and, if so required, sleeping accommodation, without specific contract, to any traveller presenting himself who appears able and willing to pay a reasonable sum for the services and facilities provided and who is in a fit state to be receied.

(Hotel Proprietors Act 1956)

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Hotels Classification

• Target Market

• Location

• Size

• Facilities

• Ownership

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Classifying Guests

• Business Travelers

• Pleasure/Leisure Travelers

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Target Market

Commercial Hotels / Tourist Hotels / Resort Hotels

Vacation ownership and condominium hotels

Casino Hotel

Convention Center

• Activity 5, p. 8

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Classifying Hotels

S IZE

SmallUnder 100 rooms

100-200 rooms

200– 700 rooms

700 rooms above

•Small

•Medium

•Large

•“Mega” Hotels

www.lrjj.cn The Fairmont Banff Springs Hotel, Canada 768 rooms

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Location

•City Centre / Downtown

•Suburban

•Water/Mountain based

•Airport

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Facilities

•Full-service Hotels

•Budget Hotels

•Self-catering Hotels

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Facilities

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Facilities

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Facilities

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Ownership

• Private

• Local Group

• International Group

• Activity 7, p. 9Answer question in Activity 7, p. 9

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Hotels Affiliation

• Management Contract - property is owned by one company and managed by another. The hotel’s name remains the same.

• Franchising – property is owned by one company and managed by another. Owner buys into the name and pays for franchising plus % of profit (or turnover).

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Exercise

• Answer Review Question 4, p.11