Introduction To Hospitality Industry

Food, shelter, or both to people away from home
Work of hospitality managers
-Want to make guests feel welcome
-Want to make things work for the guest
-Want to control costs
Knowledge worker
Applies ideas and knowledge to work
Job-benefit mix
When you gain money and knowledge from a job
Retained earnings
Bank of skills and knowledge accrued
Baby boom
Children of WWII vets
Generation X
+31-41 and numbered 42 million in 2006
+born in 1970s
+Worldly wise, independent, pragmatic and intelligent; technologically savvy
Generation Y
+Children of baby boomers
+mid 1970s
People’s patterns of activities, interests and opinions
Target marketing
+Tailoring business toward demographics
+Tailoring toward potential employees
Work force diversity
Components of diversity in work environment
% of food budget spent away from home
48%- commercial restaurants
Largest growth in food service
Take-out, drive-thru, and delivery (off premise)
Social needs
Biological needs
Chains dominate Quick Service Restaurants
McDonalds- standardized product
Home made replacement
Off premise dining
Empowerment- FOH
+Front of House
+ dining room wait staff to meet needs and provide expectations
Ways to increase profit
Increase sales and reduce costs
Cost of sales
+Cost of product consumed by guest
+Everything that goes into making a sale
Capital costs
+Variable costs
+Rent, land, fixtures etc
Check average
Total food sale/number of guests
Food Cost Percentage (FC%)
Cost of goods/selling price
Economics of scale
More units you buy less
Multiple units same owner
Multiple units multiple owners
Sole proprietor (flexibility)
Business format franchise
Includes use of product and service along with access to and use of all other systems and standards associated with business
Marketing mix
Product, price, place, promotion
Product life cycle
+Totals are high and increase rapidly at beginning
+At peak sales are highest
+Novelty wears off
-Points of distribution
-Downsized units for smaller settings (express franchises)
Sales Promotions
Activities other than advertising that are directed at gaining immediate patronage
Supermarkets in Food Service
On-site food service
-Contractors and caterers who serve food in cafeteria settings
FS Nutrition/healthcare careers
Registered dietitians determine patient nutritional needs and special diets
Contract management companies
Provide extensive facilities, business and industry
Congregate meals
Low-cost meals for senior citizens
School Food Service Model
+meets social needs
+pools subsidies
+encourages participation
+pattern of administration
Raises consumer consciousness
Dietary schizophrenia
People who eat healthy at home, but eat junk out
Laws for nutritional labeling/health benefit
Cannot make false claims about health benefits of food
+Hazard Analysis and Critical Control Points
+Food safety
#of waste per American
Full service hotels
Wide range of amenities
Limited-service hotels
Just rooms
Ecotourism resort
+typically remote
+significant natural beauty
+design elements blend with surroundings and protect ecosystem
Vacation ownership
Social, military, education, religious, fraternal
Hotel segmentation
Types of hotels for specific demands
Hotel revenues % breakdown
Rooms: 70%
Food: 15%-20%
Point of Sale- inventory menus pricing
Property Management System- improved operational efficiency
Night audit
Balance days charges against guests’ account
Yield management
Maximize revenue
ADR- Average Daily Rate
Revenue per available room
Real Estate Investment Trust
Loading additional franchises into the same market with one or more existing franchises
Downstairs guests
Amenities and service
Upstairs guests
Just rooms
Super floors
Concierge floors
Frequent stay programs
Rewards guests for brand loyalty
Low variable cost of a hotel room
Little cost associated with the sale of one more room
“Person trip”
1 person taking 1 trip
100 miles or more
Age group for most travel
35-44 for business
Economic significance of tourism
Next to healthcare largest source of jobs
Tourism multiplier
$1 spent by a consumer in tourism produces $3 in the economy
Mass market tourism
Allows comfortable facilities for travelers from various social and economic backgrounds
Planned play environment
-Venues which mix work or trade and recreation
-Artificial: theme parks
Theme parks
Amusement parks which center around specific themes mix fun and fantasy
Urban environment centers
-Tourism venues located in cities that offer various recreational tourism activities
-Inner harbor
Growth of gaming
Gaming became acceptable and convenient and aided by the government
Zero defects
Service is something that happens to a customer
-problems are defects in service
-goal to be zero defect
Face to face transaction
Most powerful in making an impression
Product view of service
Service as a task
Process view of service
Meeting needs interaction
Developing a service culture
Commitment from the top down
2 aspects of personal service

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