HFT 1000 Chapter 1 Welcome to Hospitality 1 9 14 Globally hospitality is one of the fastest growing industries in the world Dynamically hospitality is fast paced exciting and every day is different Hospitality The big picture Common denominator Service oriented industry Hospitality product is intangible once a service is provided it can not be taken back Abstract product is tangible Example employee guest interaction at a hotel or restaurant Differs from traditional manufacturing industries that produce goods since the Businesses in the hospitality industry are generally service organizations that of fer food beverages lodging entertainment etc The moment of truth A term used in the service industry Refers to any time the guest comes in contacts with anything anyone that repre sent the operation Hospitality people business 1 2 3 Interpersonal skills needed Taking good care of the guest is the single most critical element for success The Economy Made up of 3 separate parts Agriculture If you run a restaurant someone has to harvest the food or provide the food for an industry Manufacturing Transportation service MOST DOMINANT SECTION OF OUR COMMUNITY Shifts in the economy overtime The shift of dominance from agriculture and manufacturing to service has required people to acquire different skills Before physical skills were in demand Now its all about communication talking to different size groups of people pre sentations which requires a higher level of education Today s Economy In todays economy the service industries dominate there is no tangible product because the product is mostly service The quality of that product the service experience rests in the mind of the The skills needed are more interpersonal and intellectual than in the past and this has been a difficult transition for many Hospitality Industry Segments guest Largest segments Lodging over 50 000 in the US Food service Smaller segments yet thriving Recreation parks Entertainment Disney Busch Gardens Many different types of lodging Lodging Travel Etc Resorts Inns Economy motel Bed and Breakfast Mega hotel Exclusive converted castle Europe Ratio of employees to guests 5 1 very exclusive and high end Common bond All have sleeping rooms Lodging vs Food The profitability percentage of a sold guest room is usually higher than from sell ing a meal Lodging makes more money per person Basic Strategy of Lodging Business Goal sell rooms if you aren t completely booked you loose revenue is lost Marketing challenge Bring people to the property to buy rooms The guest determines the quality and value Consistency is key Food Service Food industry is growing at a dramatic rate Growth primarily resulting from lifestyle changes among society More families eat out instead of home To meet economic needs more adults are working and working longer hours which results in inadequate time to prepare meals Caters to many customers specific needs Drive through Fast pace Special occasions needed for meal tary Restaurants are incredibly varied menu options atmosphere pricing and time Restaurants can be fine dining casual fast food fast casual private clubs spe cial events catering noncommercial School cafeteria hospital nursing homes mili How do non commercial food organizations stay in business such as a school cafeteria The county creates a budget and pays for it up front Who owns these private clubs MOST clubs are owned by its members Branding The process of taking a known brand and opening the facility in a business hospital or school Starbucks or KFC Branding brings name recognition appeal and standards of that operation for that brand The ability for restaurants to be constant all around the nation is HOSPITALITY Ambiance or Servicescape Is made up of the decor sound level lighting furniture Service quality price taste Fast Food or Quick Food Largest segment in the food industry Convenient quick and easy Brands keep adding to their menus McDonald s adding salads to the menu Bottom Line The Moment of Truth occurring throughout the business operation Customers will go back to the places they had a good experience at Chapter 2 1 14 12 Hospitality History The ancient and medieval world Hospitality began in the early days of human civilization It followed the concentration of people into towns The development of road systems and transoceanic travel The growth of interregional trade The adoption of exchangeable currency The code of Hammurabi 1750 BC Iraq provides evidence of early hospitality Includes regulations for innkeepers and tavern keepers on issues related to pricing and licensing Roman empire built an extensive network of roads throughout the Mediterranean region required the establishment of lodging and venues for travelers The silk road is a trade route that connected Europe and Asia Merchants and traders used it to transport goods silk spices and gemstones and citrus Caravanserai caravan houses appeared throughout the region Nineteenth Century During the 1800 s hospitality was mainly developed in Europe and America This period saw a significant growth in technological and economic development The industrial revolution created new wealth among investors and business own created managerial class to operate their companies contributed to widespread emergence of an economic middle class The major characteristics of the 19th century were NEW TECHNOLOGICAL DE VELOPMENT INCREASE IN ECONOMIC DEVELOPMENT and STEAM POWERED ELECTRIC TRANSPORTATION BOTH BY WATER AND RAIL Factors that resulted in more travel 1 new wealth people had more new managerial class the emergence of an economic middle class The 1st U S modern hotel was the Tremont house in Boston 1829 What was unique about it INDOOR PLUMBING Palace hotels of the 19th century set the standards that remain in place today The Modern Era Ellsworth Statler ers 2 3 accelerated construction in hotels by suggesting to build bathrooms in the same spot back to back on each floor made plumbing easier in hotels treated his staff very well 6 day work week v s 7 day work week Conrad Hilton created the 1st chain of hotels bought out Statler Ernest Henderson started Sheraton Hotels J Willard Marriot acquired the Ritz Carlton Hotels in 1995 believed in providing value and quality in his service Created an airline catering company called Inflight Catering in 1930 Kemmons Wilson envisioned a chain of inexpensive roadside hotels for travel ers on the interstate He founded the Holiday Inn and within 20
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