HBM 131 1st Edition Lecture 2 Outline of Last Lecture I Goal and Objectives II What is Hospitality A Definition of Hospitality III What businesses make up this industry A The Umbrella of Hospitality IV Primary Sectors V The Manager s Role VI How to prepare for a Career in Business Hospitality VII Why do Students study Hospitality Management VIII Employment Opportunities IX Outlook for Hospitality Outline of Current Lecture I Outlook for Hospitality A Accelerating Competition B Service is the Difference C Value Consciousness D Technology E Empowerment F Diversity G Concern with Security H Sustainability I Globalization Current Lecture I Outlook for Hospitality A Accelerating Competition 1 Competition across segments has increased dramatically 2 International competition has also increased 3 Competition had led to more emphasis on creating specialized niches and better management practices 4 Factors include Cost of money and demand for specific services a Culinary tourism go somewhere for its food and drink 5 Medical Tourism like in the UK countries will pay patients to go to other countries like Turkey to get a surgery because it is cheaper 6 Adventure Tourism and Green Tourism outdoors adventures Increasing amount of people making tourism decisions relating to tourism companies that are more green B Service is the Difference Service is key to making the business successful customer service ex Nordstrom Concept of Competitive advantage having the advantage of best customer service over competitors that is not easily duplicated Ex Wal Mart s delivery process always have a truck full and going even if it is full of another competitor s inventory making money off the delivery Items are sold cheaper because they receive them cheaper 1 Service is more and more what brings customers back or prevents them from returning 2 Companies that provide excellent service inevitably lead their segments 3 Not limited to hospitality 4 Difference between SERVICE and HOSPITALITY C Value Consciousness Good value expectations are exceeded having a better experience than what you expected 1 Customers are getting smarter and more selective 2 Customers look for value in all hospitality experiences and purchases 3 Value doesn t mean the lowest price 4 What is the value equation 5 Customers also tend to balance time and money spent D Technology 1 The hospitality industry has been slow in terms of adapting to new technologies but the industry has made some inroads 2 Perhaps the segment that is the most advanced is the airline industry both in terms of on line interaction with customers as well as up to the minute pricing 3 New technologies are being introduced every year Ipad ordering online ordering 5 guys pizza 4 Urbanspoon Yelp Four Square etc E Empowerment 1 Empowerment is the act of providing additional levels of responsibility to both employees and managers 2 This has been the result of cost cutting efforts but also as a result of trying to improve customer satisfaction 3 It has been able to happen because of the new breed of employees as well as improved technology and communication You will be expected to do more than in the past D Diversity Learn to communicate with other cultures to be more hospitable 1 Hospitality organizations are becoming more diverse in response to changes in society as well as demographic shifts and becoming more aware of the importance of a diverse organization 2 Many companies have established themselves as leaders in this area 3 Workforce Diversity Guest Diversity Examples E Concern with Security 1 Concern for personal security and safety has resulted in destinations organizations and society in general attempting to provide a greater level of safety for travelers 2 Examples include airline marshals hotel security forces cameras my restaurant and increased education Serv Safe F Concern with Sanitation 1 Increases in food borne illness has resulted in a raised concern on the part of consumers 2 Raised concerns in the US probably began with the Jack in the Box incident in the 1990s 3 More recent incidents have also raised questions about the quality of the food supply and even the water supply e g bottled water G Sustainability 1 Going green is not new but it reflects industry wide focus on corporate responsibility 2 Most hotels encourage guests to reuse towels and many have embraced lowcost changes such as lighting 3 Guests prefer to support businesses that are concerned about the industry H Globalization 1 Globalization is perhaps one of the greatest factors affecting the industry as it impacts every facet of operations including 2 Competition 3 Work force 4 Travel patterns 5 Company alliances etc