Exam 1 Notes from Lecture combined with key concepts from the bookChapter 1• Hospitality enterprises are part of the service industryo It is a people businesso Products are intangible, ex. employee and guest interaction• Differs from manufacturing industries where the product is tangible• “Moment of truth” refers to any time a guest comes into contact with something that represents the operationo After it happens, it can never be changed• General hospitality service offeringso Foodo Beverageso Lodgingo Entertainment• The service- hospitality connectiono The economyo Service sector- most dominant contributoro Hospitality industry Forecasting the guests’ service expectations is the most difficult and exciting part• Three divisions of the economyo Agricultureo Manufacturingo Service• Lodging Industryo The guest, not the management, determines valueo A guest room is a perishable product, so if it is not sold, the revenue is lost• The food service industry is growing at a dramatic rate for two reasonso Lifestyle changes among societyo An increase in second- income families• There are many reasons to eat out, including to socialize, impress someone or for romance• New taste sensations are created when chefs blend different cuisines to produce a “fusion” cuisine.• Ambiance/ servicescapeo Décoro Sound levelo Lightingo Furnitureo Dining sounds• Private clubs are owned and run by its memberso Focus is to manage “moments of truth”• Branding- taking a known brand and opening that facility in a business, hospital or schoolo This trend brings Name recognition Appeal Standards for operationChapter 2• The Ancient and Medieval Worldo A stone marker, called a stela, contains the Code of Hammurabi and is displayed at the Louvre Museum in Pariso The Code of Hammurabi Regulations for innkeepers Issues relating to price and licenseo Romans had a burgeoning hospitality sectoro Tourists can visit hospitia (guest places) in Pompeii, Italyo The Silk Road encompassed ancient routes between Europe and Asia Caravanserai (caravan houses) appeared throughout the regiono Japan had a system of rest houses established in the Nara period around 750 AD Hoski Ryokan is the oldest hotel in the world• The Nineteenth Centuryo Hospitality was developed mostly in Europe and the USo The industrial Revolution created new wealth, leading to a dramatic increase in leisure and business travelo A route from Britain to Italy, called the Grand Tour, allowed Americans to visit parts of Europeo Savoy hotel was the first of its kind in Europe and is still open today Powered by electricity and private en suite bathroomso Swiss hotelier, Cesar Ritz who built Ritz-Carlton, and French cook, Auguste Escoffier, became the most famous hospitality pros in historyo The first US lodging property was the Tremont House in Boston• The Modern Erao Most famous American hotelier, Statler, built the Statler Hotel in Buffaloo Statler hotels offered a full range of services at a moderate price First to offer private bathrooms, phones and daily newspaper Targeted the middle classo Hilton built a national chain (company with multiple locations) and acquired the Statler chain, making him the largest hotel operatoro Marriott bought Ritz- Carlton hotelso Wilson founded Holiday Inn for a cheap, roadside, family hotelo Henderson- Sheraton hotels in Boston First on NYSE• Recent developmentso Hotel companies control brand names but operate hotels on behalf of owners, based on management contractso Segments, when hotels are organized according to price and quality, from economy to luxury segmento Major hotel companies have begun to assemble portfolios of hotel brandso Hilton was the first to acquire a major competitoro Starwood Hotels bought Sheraton and eight otherso Restaurants First were Union Oyster House in Boston and Delmonico’s in NY Fred Harvey opened the earliest chain at a railroad station White Castle was the quick service pioneer Kroc bought the McDonalds brothers’ rights to their concept, and is now the largest restaurant brand in the world Developments• Franchising• Segments created• Acquisition has consolidated• Chain restaurant paradigm encompasses concepts in all segmentso Cruise/ Air lines Cunard founded the Cunard Line taking vessels from Britain to the US, and merged with White Star Line P & O offered voyages with stops in the Mediterranean, starting leisure cruising Arison created Carnival Cruise Line, “The Fun Ships”o Theme Parks Bakken- amusement park in Copenhagen, Denmark Sea Lion Park Steeplechase Park Knott’s Berry Farm built a western “ghost town” Walt Disney founded Disneyland and Disney World, which allowed guests to immerse themselves in the imaginary world• Perspectiveo Brand heritage- consumer appeal of products and services offered by older companies may be enhanced by the historical characters of their brandso Heritage tourism- travel to historic cities, ancient ruins, museums, and other locations that consider our pastChapter 3• Technology and Social Networkingo E-Hospitality A form of web retailing that features the buying and selling of goods and services on the internet It is an innovative service known as “total solutions” where distributing, servicing, and supporting hospitality products to all sizes of organizations in the industryo Social Networking Online communication is more likely to transpire through social media than via email It allows companies the freedom to do creative things online that cannot be done on a web site at a cheap costo Ad Targeting Sophisticated targeting and technology This categorizes each individual into a group based on his/ her online behavioro Text Message Marketing Businesses are beginning to text coupons, new product info, updates, and sales this way• Sustainability and Green Hospitalityo Sustainability- capacity to maintain, support, or endure Sustainability efforts reduce the amounts of resources used through ecological management, product design and new technology Triple bottom line- Business leaders must be able to balance ecologic, economic, and social concernso Green hospitality- implement “green” initiatives in response to demands from the government, environmental groups and the public Goal is to improve the ability of business while increasing its positive impact on the environment The
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