Introduction to the Hospitality Industry PDF

TH2404 INTRODUCTION TO THE HOSPITALITY INDUSTRY Nature of the Hospitality Industry Generally, hospitality is defined by the Oxford English Dictionary as the “receptio...

TH2404 INTRODUCTION TO THE HOSPITALITY INDUSTRY Nature of the Hospitality Industry Generally, hospitality is defined by the Oxford English Dictionary as the “reception and entertainment of guests, visitors or strangers with liberality and goodwill.” Therefore, the hospitality industry can be defined as the collection of businesses providing accommodation and/or food and beverages to people who are away from home, regardless of whether it is for a long or short time (Baker et al., 2011). In essence, the hospitality industry is made up of two (2) distinct services (Jones, 2002): ▪ Accommodation – It involves the provision of overnight accommodation for people staying away from home. ▪ Food and Beverage – It involves the provision of sustenance for people eating away from home or not preparing their meals. The hospitality industry is a part of a larger group of economic activities referred to as tourism. Tourism refers to a collection of industries providing essential services, such as transportation, food and beverage operations, accommodation, and leisure activities, to the traveling public (Baker et al., 2011). Figure 1. The Relationship Between the Hospitality Industry and Tourism Industry Source: Principles of Hotel Front Office Operations, 2000. p. 4. Categories of Hospitality Businesses Hospitality establishments can fall into one (1) of the following categories (Baker et al., 2011): ▪ Profit-making Business – This includes establishments that are set up to earn a profit. Examples include commercial restaurants and accommodation properties. ▪ Non-profit-making Business – This includes establishments that are not run mainly for profit but are operated to promote the benefits and welfare of their members. In case of an excess income, it is reinvested in the business. Examples include residential care facilities and institutional accommodation facilities like prisons, hospitals, and university student residences. 01 Handout 1 *Property of STI Page 1 of 3  TH2404 Hotel Classifications A hotel is an establishment offering sleeping accommodations to any person who is willing to pay a reasonable sum for the services and facilities provided (Chan & Mackenzie, M., 2013). According to the Department of Tourism (DOT), a hotel is defined as a building, edifice, or premises, or a completely independent part thereof, which is used for the regular reception, accommodation, or lodging of travelers and tourists and the provision of services incidental thereto for a fee. In the Philippines, DOT implements the National Accommodation Standards for Hotels, Resorts, and Apartment Hotels that classify accommodation enterprises using the Star Grading System. It is a points-based rating system that includes five (5) levels of accommodation standards—from one (1) to five (5) stars— applicable to hotels, resorts, and apartment hotels. The star bands for hotels, resorts, and apartment hotels are as follows (Policarpio, 2021): ▪ One Star: These enterprises appeal to budget-minded travelers. These offer a limited range of facilities and services. ▪ Two Star: These enterprises appeal to tourists seeking more than basic accommodation. These offer expanded facilities and a higher level of comfort. ▪ Three Star: These enterprises offer a very good level of accommodation. They have more spacious public areas, higher-quality facilities, and a greater range of services. ▪ Four Star: These enterprises are upscale in all areas. Accommodation is refined and stylish. Service is responsive, often including an extensive array of facilities. ▪ Five Star: These enterprises reflect luxury and sophistication. The facilities are world-class in every manner, and the meticulous service exceeds all guest expectations. To obtain higher stars, progressively higher service and facility quality, facility condition, and improved business practices like environmental management should be provided across all business areas. Hotels can also be classified according to the following (Baker et al., 2011): ▪ Target Market – A hotel can be classified based on the type of guests it caters to. It can be any of the following: o Commercial Hotel – It offers food and accommodation services to traveling businesspeople. o Tourist Hotel – It offers food and accommodation services to people traveling for pleasure. o Resort Hotel – It offers food and accommodation services to people traveling for pleasure but is usually found at scenic spots. A hotel can also be classified as residential or transient based on the expected length of stay of its guests. A residential hotel provides accommodation for guests staying for a long time, while a transient hotel caters to guests who stay for a short period. ▪ Location – A hotel can be classified according to where it is located—for instance, a city center hotel or a suburban hotel. ▪ Size – A hotel can be classified according to its size: small, medium-sized, or large. The number of rooms within each classification varies from one (1) country to another. This enables hotels with similar sizes or numbers of rooms to compare operating procedures and statistical results. 01 Handout 1 *Property of STI Page 2 of 3  TH2404 ▪ Facilities – Hotels also vary depending on the standards of services and facilities they offer. Hence, hotels can be any of the following: o Full-service Hotel – It provides a wide selection of guest services in addition to accommodations such as health, sports, and business facilities. o Budget Hotel – It provides cheaper and more basic guestrooms with limited services. o Self-catering Hotel – It only provides accommodation and no other service. Guests are expected to prepare their food, clean and tidy their rooms, and do their laundry, though some offer a weekly cleaning service. ▪ Ownership – Another way to classify a hotel is by its ownership. Hotel ownership can be as follows: o Private – It is an independent hotel owned by a person, a partnership, or a private company. o A local group – It includes several hotels owned by a local company. o An international group – It includes a hotel that is part of an international chain of hotels. References: Baker, S., Huyton, J., & Bradley, P. (2011). Principles of hotel front office operations. Hampshire: Cengage Learning. Chan, B., & Mackenzie, M. (2013). Introduction to hospitality [PDF]. Herrera, R. (2018). Restaurant management. New York, NY: Larsen & Keller. Jones, P. (2002). Introduction to hospitality operations: an indispensable guide to the industry. London: TJ International. Moura, H. (2018). Menu planning. New York, NY: Larsen & Keller. Payne-Palacio, J. &. (2016). Foodservice management: Principles and practices (13th ed.). Upper Saddle River: NJ: Pearson Education, Inc. Walker, J. (2014). The restaurant: From concept to operation (7th ed.). Hoboken, NJ: John Wiley & Sons, Inc. Department of Tourism (DOT) (n.d). National accommodation standards - hotel. Retrieved 30 March 2024 from https://visitcentralluzon.com/wp-content/uploads/2022/10/Standards_Apartment-Hotel.pdf Official Gazette (2013). DOT implements new national accommodation standards. Retrieved 30 March 2024 from https://www.officialgazette.gov.ph/2013/08/14/dot-implements-new-national- accommodation-standards/ Policarpio. (2021). Fundamentals in lodging operations. REX Bookstore 01 Handout 1 *Property of STI Page 3 of 3