Micro Perspective of Tourism and Hospitality

TOPIC 1: Tourism Business Value Chain

How do we define value chain?
A tourism value chain is simply defined as a SYSTEM which describes how private sector
firms in collaboration with government and civil society receive or access resources as inputs,
add value through various processes
(planning, development, financing, marketing, distribution, pricing, positioning, among
others) and SELL the resulting products to customers. (Hawkins, 2005).

TOURISM VALUE CHAIN

TOURISM MULTIPLIER EFFECT

Source: World Travel and Tourism Council, 2018

Source: World Travel and Tourism Council, 2018

TOURISM SECTORS
 Transportation
 Accommodation
 Food Service
 Travel Trade
 Cruise
 MICE
 Others

TOPIC 2: Transportation
Transport or Transportation
is the movement of people and goods from one place to the other.

The term is derived from the Latin words:

/trans/ - ACROSS
/portare/ - TO CARRY

Transportation is further subdivided into:

  Air
 Road
 Rail
 Water
 Others

AIR TRANSPORTATION
Humanity’s desire to fly possibly first found expression in CHINA, where human flight tied
to kites is recorded (as a punishment)

Chinese kite flying is 2500 years old. 6th -century Emperor, Kao Yang, during an early
purge, used an aerodynamic experiment to kill his enemies.

ICARUS is a character in Greek mythology. He is the son of Daedalus and is commonly

known for his attempt to escape Crete by flight, which ended in a fall to his death.

The first generally recognized human flight took place in:

Paris in 1783, a hot air balloon traveled 5 miles invented by the Montgolfier brothers, Joseph-
Michel (1740 - 1810) and Jacques-Etienne (1745 - '99)

…where two Americans who are generally credited with inventing and building the world’s
first successful airplane making it the first controlled, powered and sustained heavier-than-air
human flight on December 17, 1903 near Kitty Hawk, North Carolina.
Wilbur and Orville Wright

D.E.L.A.G
(Deutsche Luftschiffahrts-Aktiengesellschaft)
or the German Airship Transport Corporation was the world’s first airline. It was founded on
November 16, 1909 with government assistance.

MEN AND WOMEN OF AVIATION

CHARLES LINDBERG

 Made the first solo crossing of the Atlantic;

 This feat sparked the interest of aviation;

AMELIA EARHART
Lost in an attempt in 1937 to make the longest circumnavigation in the world.

The first countries in Europe to embrace Air Transport were:

 Finland
 France
 UK
 Germany
  The Netherlands

Some of the first countries in Asia to embrace Air Transport were:

India
Hong Kong
Indonesia
Malaysia
The Philippines

The first country in ASIA to embrace Air Transport is:

THE PHILIPPINES
The Philippine Airlines (PAL) was founded on February 28, 1941, making it Asia’s oldest
carrier still operating under its current name.
The airline was founded by a group of businessmen led by Andres Soriano Sr., hailed as one
of the Philippines’ leading industrialists at the time.

The airlines’ first flight was made on March 15, 1941 with a single Beech Model 18 NPC 54
aircraft, which started its daily services between Manila (Nielsen Field) and Baguio.

Notably Philippine Airlines leased Japan airlines their first aircraft, A DC-3 named “Kinsei”

On July 31, 1946 a chartered Philippine Airline DC-4 ferried 40 American servicemen to
Oakland, California from Nielsen Airport in Makati city with stops in, Guam, Wake Island,
Johnston Atoll, and Honolulu Hawaii making PAL the first Asian airline to cross the Pacific
Ocean.

The Aviation System

Aviation is the term used to describe the industry that builds and flies aircraft.

Aircraft Manufacturing
Civil Aviation
- Major Carriers – domestic and international
- Regional Carriers (commuters)
- Supplemental Carriers (Charters)
- Cargo
General Aviation
- Private Planes
- Pleasure flying, land surveying
- Flying Instruction
- Agricultural use
- Cargo
- Corporate Jets
- Air Taxi Services

Military Aviation
Airport Operations
Aviation Support Industries
It is further divided into two:
Civil Aviation
the industry that flies the public from place to place.

Military Aviation
aircraft flown by a nation’s air force and other branches in the military.

Civil Aviation, in turn can be divided into:

Domestic service
a flight must start and end within the borders of the same country.

International service
the flight starts in one country and ends in another.

Air Service and Routes

Scheduled service
is an air transportation that operates regularly at set, advertised times no matter how many
people are booked on the flight.

Chartered service
flown by charter airlines, usually sell seats to tour operators. The occasional nature of their
flights, they are not usually advertised and sold the way scheduled flights are.

Privately – owned jets

In some cases, business travelers usually senior executives fly on a corporate jet that their
company owns.

Fractional ownership
the plane has multiple owners who have set an amount of flight hours they can use.

Flight Types and Routes

NON – STOP FLIGHT
traveler goes from Point A to Point B on the same aircraft with no stop in between.

DIRECT FLIGHT
traveler goes from Point A to Point B on the same aircraft but that aircraft stops at an airport
in between. The flight will still have one flight number.

CONNECTING FLIGHT
traveler, to get to his destination, must change plane once, twice or even more times. Each
flight will have different flight numbers.
Another way to look at flights – from the traveler’s ticketing point of view:

ONE-WAY FLIGHT ITINERARY

the traveler goes to point A to Point B.

ROUND TRIP FLIGHT ITINERARY

the traveler flies from Point A to Point B, stays a while and then returns from B to A.

OPEN-JAW FLIGHT ITINERARY

traveler flies from Point A to Point B then travels by ground transportation from B to C, then
returns by air from C to A.

CIRCLE FLIGHT ITINERARY

traveler has two or more extended stopovers and returns to the originating city.

CLASSIFICATIONS OF AIRLINES
MAJOR/FULL – SERVICE CARRIERS

 Servicing both domestic and international (including long haul) flights

 Usually offers several classes of service

REGIONAL - CARRIERS

 Also known as feeder airlines because their flights feed passengers from small cities
into big city-airports and help fill the large planes of the major airlines.

LOW COST CARRIERS (LCCs)

 Emerged after the liberalization of Civil Aviation in North America and Europe in
1970’s
 Cheap, point-to-point services without any “frills”
 They offer basic services
 Passengers have the option to pay for extras such as food on board, in flight
entertainment and checked (in) baggage

AIRLINE HUBS AND SPOKES

HUBS
are airline’s centralized operation units, usually near major population centers, both domestic
and international to serve as convergence airports for their route systems.
FORTRESS HUBS are airline dominated airports where airline administrative centers are
usually located.

SPOKES
Airlines flying smaller planes feed passengers from outlying towns into hub cities forming
the spoke of the hub.

Airline Criteria for Choosing a Hub

 Central location in the area
  Market size, large local population
 Positive competitive environment
 Potential for generating new passenger and freight revenue
 Airport facilities
 Good operating conditions

AIRLINE CODES
 Each airline has a code of either two letters or a combination of letters and numbers
 Are relatively easy to learn because most but not all have some relation to the name of
the airline
 Except those international airlines the came along after the logical codes were given
out

CITY CODES
Airports have two names:

 the name of the airport (usually honoring a local hero or the politician in office when
the airport was built)
 IATA 3-letter identifiers

Types of Aircraft
 Engine Type
 Purpose
 Body Width

ENGINE
TURBOPROPS (PROPELLER DRIVEN BY JET ENGINE) OR CONVENTIONAL
TURBINE JET ENGINE

 Seating capacity between 19 to 70 seats

 Short range
 Less carrying capacity
 Less runway requirements
 Commonly cruise at just above 500 km/hr

JET ENGINE

 Seating capacity between 40 – 855 (Airbus A380 – 800)

 Larger aircrafts are for long – haul flights
PURPOSE/MISSION

 SHORT HAUL – 750 miles and up to 3 hours flying time

 MEDIUM HAUL – 751 – 2,500 miles and 3 – 6 hours flying time
 LONG HAUL – over 2,500 miles and 6 – 13 hours flying time
 ULTRA-LONG HAUL – 14 hours and above

The longest non-stop passenger service is between Singapore and Newark (NJ) in an all-
business class configuration by Singapore Airlines

BODY WIDTH

 Narrow-body aircraft
 Wide-body aircraft

CLASSES of SERVICE
FIRST CLASS

 is in the compartment at the front of the plane.

It usually features, among other things:

  wider seats;
 greater pitch;
 more recline;
 more elaborate meals;
 complimentary alcoholic beverages;
 and free movies.

BUSINESS CLASS

 usually sandwiched between the first and the coach class.

 business class represents a kind of service that’s almost as good as that found in the
first class.

ECONOMY CLASS

 the more standard level of service

 also known as the coach class

It features:

 narrower seats;
 less pitch and recline;
 simple meals or snacks or even no food service at all, except perhaps a bag of pretzels
and soft drink.

TOPIC 3: RAILWAYS, MOTORCOACHES and CAR

RENTALS
Historical Timeline of Railways

Ancient Systems
600 B.C. - Diolkos paved track way which transported boats across the Isthmus of
Corinth in Greece

Pre – Steam
Reisszug (1515), a funicular railway at the Hohensalzburg Castle in Austria – the oldest
operational railway in the world.

1500’s – wooden rails

1700’s – metal railways
1900’s 1920’s – Golden Age of Railways
Downward Demand
1930's – Pre World War II – Growth in car ownership and intercity bus services

1980 – Decline of rail service

Two factors:

 The Airline Industry

 Railways financial structure – higher fixed cost of railways

Foreign Rail Service

In many countries, railways are still a major form of transportation. Most of these railways
are owned and operated by the government.

Other Factors besides government subsidies account for the survival of passenger trains:

 Private Car Ownership – lower compared to US and Canada

 Price of Gasoline – gasoline is much more expensive in Europe
 Proximity of major cities in Europe – European capitals are far apart from major
population centers
 Reliability of rail service
 Price of Air Travel – rail travel is almost always less expensive

Motorcoach
Commonly known as the “bus” has played a major role in the surface travel industry
throughout the world.

It is the most widespread and the least expensive form of public transportation.

Origin of Motorcoaches
Descendant of a horse-drawn stagecoach in the 1890’s.

Motorcoach as a Travel Product

Hop on – Hop Off Buses

Buses travel near major landmarks around the town or city
Pre-recorded or live commentary about the landscape is provided through small headphones
worn by each passenger.
Users may leave the bus and board again without limit (hop-on, hop-off) at special bus stops
on a circular route.

Car Rentals
The evolution of the car rental industry is essentially the story of the Hertz Company, started
in 1918 when the 22-year old entrepreneur Walter Jacobs opened the first operation in
Chicago with Model T Fords.
Car Rental Process
Qualifications:

 Valid (international) Driver’s License

 Be of a certain age

Usually 21 – 65 years old

 Major Credit Card If no credit card – must be cash qualified (deposit)

 Personally responsible
 e.g. employer’s name and address

Rates
vary according to the size of the car and do not include gasoline, taxes, or charges for extra
services.

REGULAR RATE – a standard charge for the day, usually with an added amount for
kilometers driven;

SPECIAL RATE – a discount rate for weekends or holidays – can also include an unlimited
kilometer plan

CORPORATE RATE – a discount rate for employees of companies with high rental volume

Makes and Models

SUBCOMPACT
A small car (e.g. Nissan Sentra)

COMPACT
An average-sized car (e.g. Chevrolet Cavalier

STANDARD
A full-sized car (e.g. Subaru Legacy)

DELUXE
A large luxury car that usually comes equipped with many extras (e.g. Lincoln Town Car

CAR RENTAL EXTRA SERVICES

DROP OFF – allow the clients to drop-off the car at any location owned by the company

GAS – gasoline charges when cars are returned with less than a full tank

INSURANCE – clients are liable for a specified initial amount of damage to the car. Car
rental firms offer insurance to cover the liability

TAXI, LIMOUSINE AND TRANSPORT NETWORK VEHICLE SERVICES

Taxi, Limousine and TNVS play an important role in public transportation. They are called:
ON-DEMAND PUBLIC TRANSPORTATION
They don’t operate on a regular schedule, rather, passengers arrange them individually for
service.

TOPIC 4: LODGING and ACCOMMODATION SECTOR

ACCOMMODATION
defined as:
[n.] the act of accommodating or the state of being accommodated
[n.] something that meets a need; a convenience;
[n.] room and board; lodgings

People who travel and stay away from home for more than a day need lodging mainly for
sleeping:

Other purposes include:

 For safety
 Shelter for cold and rain
 Having a place to store luggage
 Being able to take a shower

Brief History of Accommodation

The history of lodging can be traced back to the civilizations of Summeria and Egypt

One of the reasons: Early traders need a temporary place to stay while they are away from
home.

Stopping points were established where different trading routes intersected.

These stopping points became trading centers in itself.

Because of the journey segments, lodging facilities became a need.

They were called:
Relay houses in China
Khans in Persia
Tabernas in Rome

At some point, Innkeepers began to incorporate food and beverage service. This led to a
change in the way people traveled.

The development of the Roman network of roads that crisscrossed Europe, Asia and Africa
also contributed to the robust development of lodging and accommodation.

As the evolution of lodging continued, the wealthy and landed aristocracy in the world began
to view the many spare rooms in their castles and estates as sources of revenue.
This is to assist them in maintaining these expensive holdings.

The so called precursor of the modern hotel –

The City Hotel
Built in New York in 1794, it is a significant milestone in the evolution of lodging because its
sole purpose was to house guests.
The City Hotel’s 73 rooms made it quite large for its time

The Tremont House in Boston was built in 1828. It is considered by many as the first 5 -
star hotel in the world. Its amenities offered such as in – room water pitchers and free soap is
considered to be revolutionary.

In 1908, Ellsworth Statler opened what many believed to be the first “modern hotel” – the
Buffalo Statler Hotel in 1908 because of its modern innovation.

Those innovations included:

 Fire doors
 Light switches
 Private bathrooms
 Key holes for easy access
 Circulating hot and cold water
 Full – length mirror
 Morning newspaper

Mobley (1925) in Cisco Texas – the first hotel purchased by Conrad Hilton – the patriarch of
the Hilton Chain of Hotels, one of Ellsworth Stalter’s rival

J. Willard Marriott who started in the restaurant business first, opened his first hotel called
the Twin Bridges in 1957.

The first – ever Hyatt Hotel

Hyatt House was bought by Jay Pritzker in 1957

TYPES OF LODGING AND ACCOMMODATION

APARTMENT HOTEL or APARTELLE

A type of accommodation described as a “serviced” apartment complex that uses hotel style
booking system.

It is similar to renting an apartment but with no fix contracts and occupants can check out
whenever they wish.

HOSTEL
Provides an accommodation where a guest can rent a bed, sometimes bunk bed in a dormitory
and share a bathroom, kitchen and, lounge.
Frequented by students and those who are in a very tight budget.
These dormitory-like accommodations or converted hotels usually offer low- cost lodging in
major cities.

Some hostels require guests to bring their own linens or perform small chores in exchange for
cheap lodging.

HOTEL
Is an establishment that provides paid lodging usually on a short term basis;

Provides a number of additional guest services such as a restaurant, a swimming pool or a

childcare;

A structure that provides sleeping accommodation to travelers and that usually provides
dining facilities and housekeeping services.

3 OF THE MOST IMPORTANT TYPES OF HOTEL

 Resort Hotel
 Business or Corporate Hotel
 Suite Hotel

RESORT HOTEL
Cater primarily to leisure travelers
They’re generally found in four environments

 Beaches;
 Near ski area
 In the desert
 Near theme parks and attractions

TYPES OF RESORT HOTELS

MEGA RESORTS
a large resort hotel with very many facilities and activities covering acres of land

ALL-INCLUSIVE RESORT
a resort that includes most or all of the costs of staying there:

 lodging;
 some or all meals;
 activities etc.

They usually have facilities for recreational activities:

 Swimming pool
 Tennis courts
  Golf course
 Dining facilities

SPA RESORTS
Provides extensive facilities for massages, facials, fitness activities and healthy dining.

SKI RESORTS
Provides a site and facilities to serve the needs of winter sports enthusiasts.

CASINO RESORTS
features extensive gaming opportunities in a destination where gambling is legal
e.g. Las Vegas

THEMED RESORTS
Is one that has strong identity often tied to some other place or time

CONVERTED HOTELS or PARADORES

old castles, monasteries, nunneries or even commercial buildings reconfigured to
accommodate tourists.

BUSINESS or CORPORATE HOTEL

 target the needs of business travelers;

 features a business center;
 guest can send faxes;
 photocopying machines;
 arrange package deliveries
 guest rooms with spacious desks, multiple telephone, printer and computer terminals;
 with at least dining facility on-site;
 caters to fitness and recreational needs;
 located to business parks ( clusters of buildings housing various companies) or near to
airports.

CONVENTION or MEETING HOTEL

 Such hotels have numerous meeting rooms and large ballrooms that can host groups
at any size.
 Usually located near city centers

ALL-SUITE HOTEL
all accommodations are suites instead of conventional rooms.

SUITES
are accommodations with at least two rooms
e.g. bed room and living room with a wall between them
they may also feature kitchen-like elements.
JUNIOR SUITES

 large oversized rooms with separate sleeping and living areas although only a curtain,
railing, or other barrier that separate the two spaces
 in some cases, there’s no barrier at all – just a very big room
 all suite hotels maybe either leisure or business or a mix of the two

CORNER SUITE

 a suite that is located in the corner of a hotel building itself.

 this suite often takes up the same area that two standard rooms would.

BI – LEVEL SUITE

 a suite that takes up more square footage than standard rooms.

 instead of taking the horizontal square footage of the corner suite, they take up the
vertical area of two rooms.

HOSPITALITY SUITE

 intended to be more than a sleeping room. Hospitality Suites are intended to entertain
groups of people. they may include a kitchen and or bar area.
 the room themselves may take up the square footage of three or more standard rooms.
 often, a standard room opens to the hospitality suite to serve as the sleeping portion of
the suite.

PRESIDENTIAL SUITE

 Sometimes called the “Chairman’s Suite” or the “Royal Suite”.

 These suites are considered to be the best and the largest room in the hotel and has the
best amenities.

MOTELS

 also known as motor hotel or motorist hotel

 referred initially to a single rooms whose doors face a parking lot or common area
 a series of small cabins with common parking
 the creation was driven by increased driving distances on the United States highway
system
 one would find “T” or “L” or “U” shape structure that included rooms, an attached
manager’s office, a reception which usually takes up a space of the guest room and
catching neon signs which employs pop culture themes
PENSION

 similar to guest houses / hostels or boarding houses

 this term is used in Spain, Italy and other countries as a synonym to cheap hostels
where one can usually get a room with shared bathroom.

LIMITED - SERVICE LODGING

 a hybrid of a hotel and a motel, these modestly sized and economically priced
properties generally have rooms that open onto an interior hallway rather than to the
outside like in a motel
 rooms are simple with continental breakfast only.

 they seldom have pools or exercise facilities

EXTENDED – STAY LODGING

Some of these properties offer daily housekeeping service, whereas others provide it only
once or twice a week only.

They normally attract:

 Business people on lengthy business trips;

 Those relocating to a new city and families;
 They feature a more home or apartment – like ambiance rather than a do all suite
hotels.

CONDOMINIUMS

 These are apartment – like facilities resemble to extended stay properties;

 The big difference is that instead of a company owning the lodging, the individuals
own each unit and also pay fees for the upkeep, security, landscaping, and
maintenance;
 But when the condo owners aren’t in the residence, they rent out their units to
travelers;
 Some provide housekeeping service but others don’t.

TIMESHARES

 Here’s another sort of an apartment – type of lodging that is similar to condos

 Owners don’t purchase individual units, they own a certain amount of yearly time at
the property or even at the whole network of such properties
  Timeshare industry often goes by the name vacation ownership

Club – is a variation of a time share

a company agrees to use the club or chain of clubs on a regular basis

 The commitment usually requires payment of a membership fee or deposit for the
agreed-upon room nights.
 Unlike timeshares, club provide full – service amenities
 They are value – priced.

BED AND BREAKFASTS [B&B’S]

These home – like properties (often they are homes that has been converted) charge guests
who stay in a bedroom (sometimes with shared bath facilities) and offer full breakfast in a
communal dining room area or in the guest room.

LODGES

 These properties are usually in rural, nature dominated settings.

 They can be anything from Spartan to luxurious.

CAMPGROUNDS

 Once these facilities were where hardy tourists pitched tents.

 Today they usually refer to facilities where those who travel in recreational vehicles
or RVs stay.

DUDE RANCHES

 A unique form of lodging, these facilities convey a theme of the American west.
 Usually located in resort areas, they feature horseback riding, cattle roundups,
outdoor barbecues, and other cowboy type of activities.

LOVE HOTELS

 a type of short-stay hotel found in East Asian countries and regions such as Japan,
South Korea, Taiwan and Hong Kong, operated primarily for the purpose of allowing
couples privacy to have sexual intercourse.
 The same concept exists in Central America, particularly in Guatemala, where they
are called autohotels.
 Entrances are discreet and interaction with staff is minimized
 With rooms often selected from a panel of buttons and the bill settled by pneumatic
tube, automatic cash machines, or a pair of hands behind a pane of frosted glass.
 While cheaper hotels are utilitarian, higher-end hotels may feature fanciful rooms
decorated with anime characters, equipped with rotating beds, ceiling mirrors,
 karaoke machines, strange lighting or styled similarly to dungeons, sometimes
including S&M gear.

***Sadomasochism

CAPSULE HOTEL
Also known as a pod hotel, is a type of hotel developed in Japan in 1979 that features a large
number of small bed-sized rooms known as capsules.

RYOKAN
Is a type of traditional Japanese inn since the 8th century AD that typically features tatami-
matted rooms, communal baths, and other public areas where visitors may wear yukata and
talk with the owner.

What Room Cost?

 The quality of property

 The facilities it offer
 The service level it provides
 The prime market it serves
 Where it’s located
 The season when the accommodations are needed
 If it has a casino
 When the accommodations are booked
 Whether the hotel or chain is offering a special promotion
 If it’s prepaid, non refundable rate
 If it’s a landmark
 Whether anything spectacular or unusual going on
 If the guest is part of a conference
 How inclusive the property is
 The number of people in a room
 If there’s a resort fee
 If the guest is using frequent stay or flyer points
 How lodging is purchased

WHO OWNS LODGING FACILITIES?

 The property may be wholly-owned by a parent chain or corporation

 A property may only be a franchise of a chain
 A property may have only a management contract with the chain

HOW LODGING IS SOLD?

 About 60% of all lodging is sold by hotels and their chains directly to the public or
businesses.
 15% is purchased by tour operators and cruise lines then fold the rooms to their
packages, or to consolidators, meeting planners and other related services.
  The remaining 25% is sold by conventional and online travel agencies and their
websites.

ACCOMMODATION MANAGEMENT

Two main divisions:

 Front-of-the-House
 Back-of-the-House

FRONT-OF-THE-HOUSE
The ones that have actual contact with guests:

 Front desk
 Waitstaff
 Bartenders
 Entertainers

BACK-OF-THE-HOUSE
The ones that guests may sometimes see but usually don't need to see:

 Housekeepers
 Engineers
 Maintenance
 Sales
 Marketing
 Reservations
 Accounting

THE ROOMS DIVISION

Generally includes:

 front office
 reservations
 communication services
 uniform/guest services
 housekeeping

FRONT OFFICE
the gateway of the property and provides the first and the last contact for guests.

RESERVATIONS
Often operates back-of-the-house but also has an important front-of-the-house function since
reservation work involves public relations and sales duties
Guest and Uniformed Service
Include the services provided by the:

 Concierge
 Bellstaff
 Lobby Porters
 Valet
 Doorstaff

People in these positions have direct contact with guests

Besides performing their specific tasks, they act as salespeople and answer questions.

Sales and Marketing

Carries out four functions:

 Sales
 Advertising
 Public Relations
 Market Analysis

Food and Beverage

Manage food production and service in one or more food outlets:

 Beverage outlets
 Cocktail lounges and pubs
 Room service
 Staff cafeteria
 In-house catering or satellite catering

Food and Beverage

A Food Service Department typically has the following functions:

 Planning menus for specific services (restaurants, banquets)

 Determining ingredients
 Purchasing
 Receiving
 Storing food-related items
 Preparing and serving food
 Clean-up

Food and Beverage Department has both front-of-the-house and back-of-the-house

component

Other Departments/Divisions
  Human Resources
 Accounting
 Security
 Maintenance and Engineering
 Materials Management (Purchasing)
 Facility Management

FOOD and BEVERAGE SECTOR

Characteristics of the Restaurant and Foodservice Industry:

 Annual sales of over $550 billion dollars.

 More than 945,000 restaurant and foodservice operators.
 Employs more than 13 million people.
 Over 57 percent of restaurant and foodservice managers are women.
 Approximately 25 percent of eating-drinking establishments are owned by women, 15
percent by Asians, 8 percent by Hispanics, and 4 percent by African Americans.
 The industry expects to continue to grow over the next decade, with 14.8 million jobs
by 2019.

The restaurant and foodservice industry can be divided into two major parts or segments:

 Commercial
 Non - commercial

The commercial segment makes up almost 80 percent of the restaurant and foodservice
industry.

The non - commercial segment represents about 20 percent of the foodservice industry.

The non - commercial segment prepares and serves food in support of some other
establishment’s main function or purpose.

Categories in this segment include:

 schools and universities

 military
 health care
 business and industry
 clubs

The History of Foodservice

The Real Beginning: Ancient Greece and Rome:
  Ancient Greeks rarely dined out, although they enjoyed the social aspect of dining and
often got together for banquets.
 Romans’ meals were primarily served in the home.
 Romans’ desires for exotic foods and spices increased trade, stretching the Roman
Empire farther east and north.

The Middle Ages:

 Landowners, who lived in relative

 comfort, held large banquets
 almost every night.

Guilds, or associations of people with similar interests or professions were organized.

Cooking guilds established many of the professional standards and traditions that exist today.

During the Renaissance, world travel and international trade greatly improved the European
way of life.

The food preparation system we now call haute cuisine, an elaborate and refined system of
food preparation, had its roots during this period.

In 1765, a man named Boulanger began serving hot soups called restaurers (meaning
restoratives) for their
health-restoring properties.

He called his café a restorante, the origin of our modern word restaurant.

The Industrial Revolution:

 During the Industrial Revolution, people moved to the city to find work in the
growing number of factories to earn a better living.
 People needed to live close enough to the factory to walk to work, go home for lunch,
and leave again for dinner.
 As cities became business hubs, dining and lodging establishments opened up to serve
the needs of workers
 and employers.
 With the invention of the railroad in 1825, inns, taverns, and foodservice facilities
located near railway stations began to grow.

The Twentieth Century:

 By the turn of the century, more people were working and therefore eating out more,
especially for lunch.
 During World War II in the 1940s, the lodging industry prospered as people traveled
for war-related reasons.
  After World War II, in the 1940s and 1950s, the quick-service restaurant segment of
the industry grew quickly.
 In the 1960s, commercial air travel became popular, and builders focused on land
near airports as the next new place to situate hotels, motels, and
foodservice facilities.

The Twentieth Century (continued):

The rapid growth of national chains from the 1970s to today has changed the face of the
restaurant and foodservice industry.
“Eating out” became almost as commonplace as eating at home—not just for special
occasions, but simply for convenience.
In the last few decades, lifestyles have
moved steadily toward busier households
that no longer have a dedicated daily food
preparer.

Large restaurant chains lead the way for full-service, casual dining chain restaurants,
matching the growth in the quick-services sector.

Types of Service

Table Service

 Most popular type of service;

 Usually a greeter seats you;
 A server takes your order from a menu;
 Then the food and beverages are delivered on your table;
 Before leaving, you pay your server or a cashier;

Banquet Table Service

This type of service comes in three versions:

 Everyone is served with the same meal at the same time;

 Features several choices but again all meals are served at the same time;
 Seating – guest pre select from a menu and are served at the same time;

Buffet Service

 More self-serve than a cafeteria;

 One price, oftentimes paid in advance covers everything;

Cafeteria Service

 Guest picks up the tray, select their food;

 Place their choices on the tray;
  Pay their selections at a cashier;
 Take the food themselves on the table;

Room Service

 Guests order their meals from a special in – room menu;

 The meal is brought to their guest room usually within 30 – 45 minutes;
 A service charge, perhaps gratuity are, in most cases automatically added to the bill
which appears on the guest folio and is paid when they check out;

Fast Food Service

 Guest walks up to the counter or drive through and order;

 Most fast food facilities have open seating area;
 Family or travellers often use fast food outlets to save time and money;

Delivery Service

 Food is prepared and then delivered usually to the customer’s home;

TRAVEL TRADE
THOMAS COOK and Son, was the world’s preeminent travel services company.

By 1872, had organized a 222-day trip around the world.

Traditional Agency
The main function of a traditional travel agency is to:

act as a real-time intermediary between customers and suppliers:

Airlines ● Hotels ● Rental Car Companies ● Cruise Lines ● Trains

Travel Management Company NOW

“The virtual elimination of domestic travel agent commission was said to have saved the
airlines around $1 billion a year.”
New York Times, 2002

TMCs offset the loss of commission by:

 Rebates
 Incentive payments

- from GDS providers per booking

 Service charge
During the 1990’s
ONLINE RESERVATIONS delivered another blow as customers increasingly sought out
computer-based, third-party vendors.

Websites, among others in pursuit of air, lodging, cruise and inclusive tour bargains.

HOW ARE THEY SURVIVING?

 Older people and recent immigrants have remained important clients

 Business travellers have remained loyal

TRAVEL MANAGEMENT COMPANY or TOUR OPERATOR

are they the same or just similar?

“there is a thin, blurry line between them.”

In the Philippines, Tour Operators are travel agents who expand their product range by
setting up a tour operation department.

to simplify:
T.O = Wholesales
TMCs = Retailers

Tour Operations
is defined as the preparation and implementation of all activities within an itinerary, within a
given time frame, within the estimated costs, in order to meet the next expectations of the
paying client.
- Claraval, B., 2013

Industry Characteristics
Tour Categories based on personality:

 Independent - experienced, flexibility, on their own

 Escorted - Inexperienced, wants worry-free travel
 Special Interest - bird watching, safaris, architecture
 Adventure - involves effort and energy, danger

The TOUR PACKAGE itself is constructed from at least two tourism elements.

Tour Elements:

Transportation
(by air, sea, or land) to and from a point of origin to a destination or destinations and back to
the point of origin.

Transfers
transportation to and from a destination’s gateway (airport, pier, or bus station) to the place of
lodging and vice versa.

Accommodations
lodging and meals in the lodging establishment.

Tour Escort
refers to the services of an individual who travels with the clients from the point of origin and
back, and acts as a manager of the tour group. This person is also known as the Tour Leader.

Sightseeing Tours
are a combination of transportation within the destination to sights and sites of interest, tour
guide’s services, entrance fees, entertainment or activities and sometimes, snacks and meals.

Depending on the number of components tour packages have different labels:

If only tours and transfers are included, it is called ground arrangement package.

If tours, transfers and hotel accommodations with some meals are included, this is
called land arrangements package.

If tours, transfers, hotel accommodations and some meals, plus transportation to and from the
destination(s) are included, this is called an inclusive tour package.

If all components are included, including tour escort, this is called inclusive escorted tour
package.

Tour Categories Defined by Purpose:

Relaxation. Chance to relax, with plenty of sun, sandy beach, good food and nightly
entertainment.

Sunspot Stayput. Round-trip flight, round-trip transfers from the airport to the hotel and
several nights’ accommodation.

Scenic. Enjoys spectacular scenery while they are away from home.

Learning. Provides a learning experience because of interest in culture, history, science or

education.

Religious and Ethnic. Religious tours to sacred or holy places (e.g. holy land and Mecca) and
visits to the place or origin where their parents or grandparents came.

Cruise Industry
Origins of the Cruise Industry

between 1700s and the present, the passenger ship industry went through several different
era:
TRANSATLANTIC CARGO SERVICE
built for cargo with few space for passengers

CLIPPER SHIPS
carried both passenger and freight

then came the age of STEAM:

pioneered by Samuel Cunard of Halifax

1800s
the Great Age of Luxury Liners

ALBERT BALLIN OF HAMBURG-AMERICA LINE

coordinated the first recorded cruise in 1891 on board Augusta with 241 passengers

1906, Maurentina, Cunard Company

Entered into cruise company in large scale, popularly known as the “Gem of the Sea”

Titanic, 1912
Considered as an important event in the cruise industry

In the early eighties, the cruise industry gained popularity due to the television series “Love
Boat” which was first aired in 1977.

Six Important Terms:

Bow = front
Stern = extreme rear of the ship
Aft = Rear
Port = Left side
Starboard = Right side
Midship = Middle of the ship

A ship is classified by its gross registered tonnage “(GRT), which measures the volume of
public spaces on the ship. The larger the GRT, the more passenger the ship can carry

General Types of Cruises

World Cruises. Considered as the ultimate journey of cruising and a vacation of a lifetime.
Usually lasts for three (3) months with over 30 ports, travelling from east to the west of the
world.

Popular Cruises. Usually 7 – 10 day cruise and the most sellable type of cruise especially
during summer or winter.

Short Cruises. The bottom of the cruise pyramid that are usually 3 – 4 days only.

Cruise Geographical Areas

The Caribbean. The first cruise area developed in 1960s for modern cruising and remained
the most popular region for Canadian and American tourists.
The Mexican Riviera. Popular destination for cruises from the west coast American ports
with Mazatlan, Puerto Vallarta and Acapulco as popular destination.

Alaska. The fastest growing destination and the third largest cruise region in the world with
passenger lists includes naturalists and whale watchers

Trans Canal. Passenger pass through Panama Canal on a 19-day cruises between Los
Angeles or Acapulco and Fort Lauderdale.

The Hawaiian Islands. American Hawaii Cruises operates year-round seven-day cruises with
Honolulu, often as the port of call.

The Eastern United States and Canada. The cruise route that is most appealing to senior
citizens since its generally “quieter” than the luxury liners.

The Mediterranean. The main cruising area of Europe and the second most popular
destination after the Caribbean.

Northern Europe. Norway’s North Cape is Europe’s equivalent to United States’ Alaska .

Who Cruises?

 Activity Lovers
 Families
 Gamblers
 Groups
 Physically – Active
 The Physically – challenged
 Honeymoons and Anniversaries
 International Set
 Port Tasters
 Resters and relaxers
 Singles
 Soft – adventure seekers
 Special Interest or theme seekers

The Ship Experience

Before you Sail

If you arrange your flight with the cruise line, a “meet-and-greet” person will be at the airport
to facilitate your transfer to the dock.

You get on a motor coach and your luggage is loaded on board.

A festive highlight of any cruise is when the ship leaves the dock and heads for the open
water.

A celebration may be taking place on the pool deck where, with tropical beverage on hand,
you wave goodbye to the stress of civilization.

At – Sea Days
While most days of this cruise will be spent visiting ports, your first full day will be spent at
sea.

What will you do? Whatever you wish. Perhaps you’re hungry for the details about the
ship. You could attend the ship’s orientation meeting and the “port talk” for the next day’s
destination.

The End of the Cruise

The last evening of the cruise, you enjoy the farewell dinner and show, settle any outstanding
charges at the purser’s office then head back to your stateroom.

You pack your suitcase and leave it outside your stateroom for a crew member to pick it up.

Land Base Operations

To support the floatels or floating resorts, each cruise line has a land based operation.

Land based jobs with the cruise line are chiefly in sales and marketing such as:

 Agency sales;
 Group sales;
 Group reservations;
 Air / Sea operations;
 Ticketing and price development.

Cruise lines have accounting departments, computer programmers, and systems analysis.

Entry – level jobs are primarily in reservations and telephone sales.

Life on Board the Ship

A cruise is usually a circular journey not a one - way trip.

Port of Embarkation
The port or city where the cruise begins.

Port of Call
A city which is on the ship’s itinerary

Port of Debarkation
The ship’s final port, which is usually the city where cruise started.

Embarkation

Passengers can embark approximately four hours Before sailing;

Upon arrival at the pier, luggage is collected by porters and brought to the cabin after a few
hours or sometimes even after the ship departs;

Cashless Society
Cruise ships operate as cashless societies;

During the boarding process, passengers register credit cards to open a shipboard account;

Those without credit cards must make a cash deposit;

Why people cruise?

 A cruise pampers the clients

 A cruise provides stress – free vacation
 A cruise is a new experience
 A cruise facilitates shopping
 Cruises offer variety of events, activities and meals
 A cruise is a learning experience
 A cruise develops friendship
 A cruise is a romantic experience
 A cruise is a great way to celebrate a special event
 A cruise satisfies practically everyone

Organizational Structure

There are three (3) main operation departments on the ship:

 Hotel Department
 Fleet Department
 Sanitation Department

Hotel Department
Responsible for the passengers’ activities, food, beverage, entertainment and other personal
services offered.

Fleet Department
Responsible for the maintenance of the ship and includes the ship’s officers, radio operations,
engine and deck crews

Sanitation Department
Responsible for the health and safety of passenger and crew