Tourism and Hospitality Industry Sectors

• Tourism includes activities of people traveling and staying outside their usual environment for up to one year for leisure, business, or other purposes, excluding activities paid for from within the place visited. This is according to UNWTO
• Hospitality is helping people feel welcome, relaxed, and enjoy themselves, derived from the Latin 'hospitaire,' meaning 'to receive a guest.'
• The hospitality industry includes restaurants, hotels, casinos, amusement parks, events, cruises, entertainment, and tourism-related services.
• The main goal of hospitality managers is providing excellent service and high-standard environments for customers.

Sectors in the Tourism and Hospitality Industry

• The accommodation sector offers shelter, food, beverages, and entertainment for travelers on their way to or at their destination.
• Accommodation properties, restaurants, and food/beverage outlets are sectors of the hospitality industry.
• Accommodation businesses vary widely in the types and standards of services they provide.
• Some establishments like hostels or pubs may only offer basic overnight accommodation. In contrast, resorts offer extensive amenities like restaurants, bars, entertainment, gambling, recreation, and childcare.
• The transportation sector provides the means of travelling from the tourist's home to and within the destination(s).
• Tourists often use their own vehicles for domestic travel.
• Businesses in the transportation sector include airlines offering domestic and international services
• Coach operators providing scheduled express services linking cities, towns and tourist destinations
• Railways providing interstate and intrastate services
• Vehicle rental companies that offer cars, campervans, motor-homes Shipping or cruise lines offering point-to-point transport and leisure cruises.

Tour Wholesaler and Operators

• Tour wholesalers and tour operators' functions are often integrated, with wholesalers organizing and packaging tours that utilize businesses in other industry sectors.
• Local tour operators are based in tourist destinations or stop-over locations, offering harbour or river cruises, walking tours, scenic flights, and coach tours.
• Inbound tour operators bring tourists into a country, handling all arrangements and curating tours for non-residents.
• Outbound tour operators work with international travelers, creating packages for convenient travel to another country.
• Tour operators can also act as wholesalers by selling their products to agents and the public.

Attractions and Theme Parks

• This sector caters to tourists' recreation and leisure needs, either en route to or at their destinations.
• Attractions can be natural or man-made and are a key reason people choose a destination.
• Businesses include theme parks, museums and art galleries, zoos and wildlife parks, cultural display centers, retail outlets, and national parks.

Retail Travel Agents

• Retail travel agents act as intermediaries for tourism businesses, reserving, collecting payments, and completing documentation.
• Examples of retail travel agents: Flight Centre, Jetset Travel, Harvey World Travel.

Information Services

• Information services organizations provide information and promote specific destinations, operating at various levels.

M.I.C.E (Meetings Incentives Convention & Exhibitions)

• M.I.C.E. is a fast-growing sector of the Australian tourism industry, comprising businesses that organize meetings, conferences, and exhibitions.
• They also provide facilities, services (audiovisual equipment, speakers, registration), and coordinate festivals and community events.

Other Ancillary Services

• Other ancillary services are organizations that provide services and products to travelers outside specialized sectors.
• Travel insurance
• Passports
• Visas
• Traveler's vaccination
• Medical assistance
• Foreign exchange
• Duty-free outlets

Characteristics of the Tourism and Hospitality Industry

• The tourism industry has characteristics of inflexibility, perishability and inconsistency
• Inflexibility in capacity means the number of beds or seats are fixed, making it hard to meet demand surges.
• Restaurants and flights may have tables and seats that remain empty during low demand.
• Perishability means if seats on an airline are not sold, the opportunity to sell the product is lost forever.
• Inconsistency arises as tourism products can be hard to standardize and a travelers actual experience is varied. Bad experiences could be because of tourist guide, hotel lodging and boarding.

Impact of Tourism Industry in the Economy

• The tourism industry contributes economically through foreign exchange earnings, job creation, and infrastructure investment stimulation.
• Employment opportunities grow in tandem with the industry. Tourism improves water systems, electricity, telephone networks, and public transportation networks.

Micro Perspective

• A micro perspective involves a deep dive into every detail underlining activities and processes to see how work is being done.
• The goal is to find out how things are working on a level that can be measured.
• Details, metrics, performance and measurement are hall marks of a micro perspective.
• Micro economics refers to individual or company specific studies in economics. Business studies include pricing and the impact of taxes.

Microeconomic Business Factors

• Microeconomics involves factors of resource availability and usage that impact individuals and businesses.
• It is a branch of economics that studies behavior of individuals and firms making decisions regarding resource allocation and interactions within those entities.
• Company operators should understand microeconomic factors for planning, preparation, and long-term business strategy.
• Direct microeconomic impact comes from customers since a company cannot successfully operate without attracting target customers.
• Effective marketing campaigns are integral to customer base building and generating revenue streams.
• In hospitality, customers are "guests". They are those who travel for recreational, leisure, or business purposes.
• Employees drive a business' productivity by producing, selling, or servicing goods.
• Qualified, motivated employees are vital to economic success.
• Those working in hospitality are expected to be highly trained as chefs, front desk agents, concierges, and hotel/restaurant managers.
• Distribution channels and source materials are used in production, resale, and distributing inventory to customers. Also important is the suppliers
• Manufacturers rely on materials suppliers and resale companies rely on manufacturers or wholesalers to transport goods.
• Running profitably requires value from goods, supplies, and accessible solutions.
• Suppliers in hospitality management include suppliers in beverage, bakery, Food equipment, bar, cleaning materials etc.
• Suppliers can affect a firm's profit by deciding whether to raise prices.
• A good and trustworthy supplier can also affect the business.
• Competition can impact business livelihoods where "more competitors" diminishes customers spend.
• An increased number of competition can signify product and services
• Shops, Restaurants and Hotels are a business' competitors
• Investors help fund a company at start-up, or as it looks to grow.
• Without funds, it is impossible to build or expand. This could also occur in a lending situation as shares are given out,
• You give up some control by taking on investors, but often gain financial support and expertise.
• Investors are seen as risk bearers, and they risk time, effort, and reputation for the business
• Investors fuel the economy by financing aids

Media and General Public

• Local community and media affects the business as well.
• Communities support companies that provide jobs, pay taxes, and operate with social and environmental responsibility
• Tourist attractions need to be available to the public with planned promotions

Explore the tourism and hospitality industries, including definitions from organizations like UNWTO. Learn about the accommodation sector, restaurants, and more. Discover the goal of hospitality managers in providing excellent service.