Fundamentals of Tourism and Hospitality

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CHAPTER 1
WWW.UNIQUEPLACES.COM
DTM10083 Fundamentals
of Tourism & Hospitality
1
What is TOURISM?
‘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’.
(World Tourism Organization, 1993)
Definitions of tourism tend to share a range of common elements:

 Tourism is the temporary, short term travel of non-
residents along transit routes to and from a destinations;
 It can have a wide variety of impact on the destination,
the transit route and the source point of tourist;
 It can influent the character of the tourist; and
 It is primarily for leisure or recreation, although business
is also important.
2
What is the TOURISM INDUSTRY?
 The tourism industry is a group of business that

encompass travel/transportation vendors for air,
rail, cruise and motor-coach travel and promote
travel and vacation.
 The business that provide goods and services to

tourists, visitors and all types of travellers while
they are travelling.
3
TOURISM INDUSTRY SECTORS
HOSPITALITY TRAVEL OPERATIONS VISITORS SERVICE
Attractions (built and
Accommodation Retail travel agents
natural)
Restaurants Tour wholesalers Special events organisers
Government tourism
Cafes / bars Tour operators
commissions
Regional tourist
Club venues Airlines
associations
Gaming facilities Cruise Lines Visitor information centres
Conference facilities Railways Duty-free shops
Catering services Coach companies Souvenir outlets
Recreation / sports
Entertainment Car rental companies
facilities
4
What is HOSPITALITY?
Latin “Guest, visitor, Welcoming of

or more who guest to any
word provides type of facility
lodging for a
“hopes” guest or visitor.”
that offers food
and shelter
Hospitality can be defined as the provision of a range

of services and facilities that meet the needs of people
while away from home, such as accommodation, food,
beverages and entertainment
5
What is the HOSPITALITY INDUSTRY?
 The hospitality industry is a group of business composed

of establishments related to lodging and food service
management.
 These business include hotels, motels, inns, and bed-and-
breakfasts (B&Bs), or small unique inns that offer a full
breakfast with a night’s stay, as well as casinos,
restaurants, catering companies, hospitals, school and
many other facilities.
 Hospitality business are open 365 days a year and 24
hours a day and are likely to require shift work.
6
HOSPITALITY INDUSTRY SECTORS
Food Service Sector Lodging Sector
• Hotels • Hotels
• Motels and motor inns • Motels and motor inns
• Restaurants • Clubs
• Clubs • Caravan Parks
• Caravan Parks • Bed & breakfast
• Bed & breakfast • Hostels
• Hostels • Resorts
• Fast food outlets • Serviced apartments
• Resorts • Casino complexes
• Convention and conference venue • Cruise ships
• Serviced apartments
• Entertainment / sporting venues
• Casino complexes
• Road houses
• Private catering
• Cruise ships
7
Accommodation
Sector
Travel Trade Food Services
Sector Sector
Events Sector Tourism Sector
Attractions Transportation
Sector Sector
Adventure &
Entertainment
Outdoor
Sector
Recreation
8
Relationship between Tourism and Hospitality Industry
services in
travel away from need a place to stay hospitality
home overnight need food and drink industry
However, the relationship between tourism and hospitality does not end there.
The two are intrinsically linked and need to work together to help sustain each other.
9
Relationship between Tourism and Hospitality Industry
Travel Agent
Package Holiday
An inclusive arrangement
usually for transport,
While from a travel operations perspective tourism is mainly accommodation,
transfers, some meals,
concerned with getting people to a destination, the role of occasionally tours and
hospitality is to provide not only accommodation but also food various other aspects of a
and beverages, entertainment and activities (such as in a resort) trip for an all inclusive
price.
to offer a range of other services and facilities that tourists seek.
10
Relationship between Leisure, Recreation and Tourism
Leisure /
Tourism
Recreation
• Using overnight • Catering • Sport/physical

accommodation • Visiting the art recreation
• Visiting • Visiting our built • Other outdoor
attractions heritage activities
• Using • Visiting the • Community leisure
conference / countryside • Play and home-
exhibition centre based leisure
• Entertainment
All leisure activities
11
Characteristics of Tourism & Hospitality Industry
Perishable
 Services cannot be saved, stored, resold or returned.
 The probability of a product ceasing to exist or becoming

unusable within a limited amount of time.
 Services cannot be produced and stored today for

consumption in the future
PJB/JH/UEN_JUN2010 12
Perishable … example (i)
1400 rooms TODAY

NOTHING
Only sell Lost 200 room

1200 rooms 200 nights & revenue
UNSOLD
rooms
We have 1,400 rooms in inventory, that is, available to sell, but we sell only 1.200
rooms. What we do with the 200 unsold rooms?
Nothing – we have permanently lost 200 room nights and their revenue.
Perishable … example (ii)

Customer DO At the
NOT order fish END
Restaurant lose money
On the food-service side,

if a restaurant orders 100 kg of fish, and customers do not order fish from
the menu, the owner will lose money.
Perishable … example (iii)
Capacity: lost income

2100 passengers only 1100 guests 1000 capacity
A cruise ship can service 2,100 passengers. If the ship sails with only 1,100 guests,
the lost income will never be returned.
Intangibility
 A state of being abstract, as are thing that cannot be
touched
 Hospitality goods & services relate to memories and

experiences.
 They are impossible for people to sample or touch prior to

arrival.
 Brochures, web pages, maps, graphics, and menus may

provide a basic idea before a guest make a purchase, but the
actual experience is intangible in nature.
Intangibility
X X
The guest cannot “test drive” a night’s stay, or “squeeze the steak” before dining.
Our product is for the guest’s use only, NOT for possession.
Inseparability
 Production and consumption occur simultaneously and in
the same place.
 The consumers and producers of these products are in

frequent contact, the nature of the these interactions has a
major impact on customer satisfaction levels.
 Services cannot be separated from their providers.
Inseparability
The flight of a passenger aboard an aeroplane

(i.e. The flight is being ‘produced’ at the same time the passenger is ‘consuming’ it)
A guest’s occupation of a hotel room.
Changeability / Variability
 The service provider and guest both play important roles in
the success of the service encounter. Thus, service
transaction differ from other types of sales transactions.
 They are subject to changeability, a condition of being

subject to change or alternation.
 Service training for front-line personnel is essential to

eliminate changeability in the guest service.
 Quality of services depends on who provides them, when

and where.
Changeability / Variability
If a guest checks into a hotel and is disturbed by someone in the next room,
his/her impression of the hotel will change.
If a guest is greeted by a rude dining-staff attendant, his/her perception of the

restaurant will not be favourable.
TO BE CONTINUED …
THANK YOU
22

Fundamentals of Tourism and Hospitality

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WELCOME

Definitions of tourism tend to share a range of common elements:

 The tourism industry is a group of business that

 The business that provide goods and services to

Latin “Guest, visitor, Welcoming of

Hospitality can be defined as the provision of a range

 The hospitality industry is a group of business composed

Events Sector Tourism Sector

• Using overnight • Catering • Sport/physical

All leisure activities

 The probability of a product ceasing to exist or becoming

 Services cannot be produced and stored today for

Perishable … example (i)

1400 rooms TODAY

Only sell Lost 200 room

Perishable … example (ii)

Restaurant lose money

On the food-service side,

Perishable … example (iii)

Capacity: lost income

 Hospitality goods & services relate to memories and

 They are impossible for people to sample or touch prior to

 Brochures, web pages, maps, graphics, and menus may

 The consumers and producers of these products are in

 Services cannot be separated from their providers.

The flight of a passenger aboard an aeroplane

A guest’s occupation of a hotel room.

 They are subject to changeability, a condition of being

 Service training for front-line personnel is essential to

 Quality of services depends on who provides them, when

If a guest is greeted by a rude dining-staff attendant, his/her perception of the

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