Exam Review Introduction to Hospitality Evolutionary History and Current Trends PDF

EXAM REVIEW INTRODUCTION TO HOSPITALITY EVOLUTIONARY HISTORY AND CURRENT TRENDS SEG 4013 & 4033  Exam Review Part A : Multiple Choice Question Part B : Short Answer Question Part C : Long Essay Question Why is it important for employees to di...

EXAM REVIEW INTRODUCTION TO HOSPITALITY EVOLUTIONARY HISTORY AND CURRENT TRENDS SEG 4013 & 4033  Exam Review Part A : Multiple Choice Question Part B : Short Answer Question Part C : Long Essay Question Why is it important for employees to differentiate needs from wants? To know what is a deal breaker and what is/is not negotiable To know what must be provided no matter what and what can be negotiated Helps provide better service and a unique experience. Avoid major complaints (Google images 2016) Page 36 LG 1. Physiological needs 2. Safety needs 3. Social needs 4. Esteem needs 5. Self-actualisation needs Physiological need Relates to the physiological well being of the guests Hospitality examples: Do the guest have access to food and beverages? Is it free of charge?( Bottles of water often provided in guests’ rooms)  Is the mattress comfortable? Is the room smelly/unclean? Is the room quiet or noisy? (Google images 2016) Safety needs Relates to the overall safety and security of the guests.  Is there any key access elevators? (Google images 2016) Examples: How safe is the room? Double locking/safety chain Is the room safe for children? Is there a safety deposit box? Are the employees safety/security conscious Social needs Relates to guests’ social well being. Very subjective to individuals. Varies according to each guest and therefor is difficult to achieve. Guests need to have a sense of belonging (home away from home). Do employees show warmth, friendliness, attentiveness, compassion Is the ambiance/ atmosphere of the hotel relaxing and warm? Do the employees deal with complaints and show empathy when dealing with complaints? Is there any support in place for guests travelling alone? (Google images 2016) Esteem needs Relates to the importance of the guests Examples:  Must have a sense of pride to stay at a hotel (importance of hotel brands) Are the guests treated like VIPs? Are the employees responding promptly to requests? Are the loyal customers rewarded. Hotels need to demonstrate appreciation when a guest returns to their property. Tourism and hospitality organisations have guests loyalty programs (gifts/up sell) (Google images 2016) Self-actualisation needs Relates to the wow factor/exceeding expectations Examples: Hotel employees need to create new and unique experiences for guests. Requires employees to have great product and also general knowledge. For example staff sharing some personal/unique knowledge on particular products (beers/wine/food/local information) Employees’ ability to provide happiness, a sense of harmony, unique touch in any “moment of truth” or service encounter. (Google images 2016) Tangible and intangible nature What is the meaning of tangible? What can be held, touched, tried, or tested such as  food/ a bed/bathroom amenities/plane are tangible. (Google 2016) What is the meaning of intangible? What cannot be held, touched, tried or tested such as employees attitude, the atmosphere of an establishment , professionalism  behaviour/attitude etc.… is intangible. Often subjective to individuals (Google 2016) Experiential Guests cannot form an opinion on the products before they experience and/or consume the product. Examples: bed/bathroom amenities/a cocktail/a meal. Products and services experienced cannot be returned after it has been consumed. Example: uncomfortable bed/food poisoning (Langham hotel Melbourne) Guests get disappointed when their expectations aren’t met. A disappointed guest is a guest who will not return. Hotel employees need to ensure the best products, services are right and well delivered  (Google 2016) Vulnerability The industry is vulnerable to uncontrollable external events. We have previously looked at different events influencing the industry positively and negatively (Sport events/Festivals/G20/flood/Tsunami/ Riots/2008 economic crisis) (Google 2016) After Paris shooting `the overall hotel bookings were down 30% according to Charlotte Lumoniet, spokeswoman for France’s main hotel union UNIH’(Time 23 November 2015)  (Google 2016) Perishability Products are loosing their total values if unused often leading to a loss of revenue. Ex: hotel rooms/Meeting rooms/prepared food. If not sold on a particular day the money can never be recouped.  Seasonality Natural seasonality relates to variations in natural phenomena(snow/rain/sunshine/temperature) For example due to warmer weather the Mediterranean and Atlantic coast in France experience high tourism from June to September.  (Google 2016) Institutional seasonality Based on human behaviour and consumer decision making: Holidays( school/university/religious/public holidays varies according to countries) Travel habits and motivations Tradition/fashion/social pressure/inertia or habits Hosting and timing of events Leisure or business events (ex: Adelaide crazy march) Natural seasonality in some instances may lead to extremely short high touristic seasons (6 to 8 weeks maximum such as some ski resorts for example). Organisations must seek to generate sufficient income within that period to cover for a full year expense. Organisations need to be innovative and find ways to attract tourists all year long. (Google 2016) Inseparability  Production and consumption of a product are simultaneous. Quality check cannot always be done before the product is consumed. Guests are able to observe and therefore make judgments about quality and value. (Google 2016) Example of inseparability? Room attendant servicing a guest room/Concierge making a reservation/bar attendant preparing and serving a cocktail/A travel agent organising and selling a holiday package.  (Google 2016) This is an overarching question and can be covered in a multitude of ways: Events (Olympics) External Accessibility Exchange rate Weather Product and service Competition availability Emerging markets Security/political factors Internal The role of some operation managers. Different responsibilities? Qualities required from operation managers Responsibilities: Managing the team/inventories/ordering/keeping in line with budget/ensure brand standards are followed//understand legislation/keep customer happy/training Qualities: Flexible/sacrifice/coping with stress and pressure/starting from the bottom/understand people/understand numbers/like challenges/work hard/be passionate/wanting to learn As you can see operations Managers (OM) have many responsibilities. TQM can help managers to share these responsibilities with employees. Empowerment leads to motivation.  Motivated staff want to impress and exceed guests’ expectations in every moment of truth or service encounters. Demonstration effect often leads to acculturation. Acculturation effect is the adoption of tourist values and attitudes (westernisation)leading to a loss of cultural practices and authenticity. Young community members admire/envy certain aspects of tourists life. These aspects are not always well accepted by older members of the community leading to generational issues. Example of acculturation: The unethical approach of Westerners drinking and partying in non-drinking communities (Bali pubs/Phuket in Thailand/Sunny beach in Bulgaria etc.), often forcing the host community to adapt due to economic reasons. Budgie nine https://www.bing.com/videos/search?q=malaysia+drunk+ australians+christopher+pyne&&view=detail&mid=F3956B D2B6E413343F52F3956BD2B6E413343F52&FORM=VRDG AR Vang Vieng in Laos http://www.sbs.com.au/ondemand/video/11871811936/ t he-partys-over Acculturation often leads to unauthenticity The desire to please tourist and make profit may lead to mass production of cultural artefacts leading to a loss of true meanings for the tourists and the host community. Examples? Examples: Mass production of Lourdes holy water in France Australian Aboriginal artefacts made in foreign countries Tourism can also trigger displacement Displacement effect takes place when a host community is evicted forcibly from their home given little or no compensation to accommodate tourism. Big sporting events often trigger eviction due to infrastructure  requirements ( England/China/Brazil/Russia) Standardisation is also called McDonaldisation or service as a series of tasks. The term McDonaldization was invented by George Ritzer in his book The McDonaldization of Societies written in 1993.  (Google images 2016) McDonaldisation has become a term which explains a process or a more rational way of running a business, replacing traditional ways with logical, consistent and calculable ones. McDonaldisation is the process of rationalisation. (Google images 2016) What are the advantages of McDonaldisation/standardisation? From a consumer point of view? From a hotel point of view? (Google images 2016) Consumer: Staff efficiency/fast service Consistency Predictability Lower prices  Hotel: Consistency and predictability leading to happy guests Easy to monitor and control Super sizing leading to increase consumption and profitability. Calculability. More out of every dollar Efficiency/productivity (Google images 2016) Time saved $ However McDonaldisation/ standardisation also have disadvantages. What would be the disadvantages: From a consumer point of view?  From a hotel point of view? (Google images 2016) Consumer: No personalisation. Same product for everyone No customisation Lack of choice. Products and services as well as quantities are imposed. Repetitive Employees don’t need to think. They comply with standards Homogeneity/boring Quantity is not quality Taking skills away from employees. (Harder to exceed expectation and provide service excellence(Maslow) Hotel: Repetitive which often leads to employees’ boredom.  Mind Numbing. Lack of customisation leading to guests’ complaints (Maslow’s esteem needs and self-actualisation). Staff don’t learn to think and deal with unusual situations. Dehumanising. Employees’ lack of interest and motivation. Restricting employees to make decisions/lack of empowerment. Removes the flavour of an establishment. Stop uniqueness and creativity. Organisations may decide to adopt a different approach called ‘Service as a Process’ (Google images 2016) What are the advantages of applying `service as a process’? For a customer point of view? For a hotel point of view? (Google images 2016) Consumer: Employees ability to exceed expectations  Employees abilities to think. Service delivery variation between employees. Less homogeneity/less boring. Customisation. Service and products delivered according to consumers characteristics/location. Easier to experience the Wow factor. Hotel: Less boredom. Lower turnover of staff. Staff empowerment. More holistic approach. `Working with’ culture as opposed to working for. Employees ability to exceed guests’ expectations (self-actualisation). Increase staff motivation/self-esteem (Maslow). Staff autonomy reducing the need for supervision. What are the disadvantages of applying `service as a process’? For a customer point of view? For a hotel point of view? (Google images 2016) Customer: Lack consistency. Guests may not receive the same products and services. Hotel: Employees are hired not because of their skills but because of their abilities to think and their personality. Hiring process may be more complex. More complex/extensive training. Guests complaints due to inconsistency. Requires management to trust their employees and take risks. Difficult to fully control. Both approach need to be adopted to satisfy both parties. Guests like standardisation because it gives them a sense of familiarity and consistency. Consistency is very important to guests.  Guests also expect responsiveness, empathy, customisation and uniqueness from hotel staffs and therefore the application of service as a process. (Google images 2016) Hotels like standardisation to monitor staff efficiency, achieve a good productivity, reduce costs and enable stronger profit. Service as a process is also beneficial because it leads to motivated staffs/lower staff turnover. Helps achieve service excellence, returned guests. Tourism spending is divided into four categories: 1. Direct spending 2. Indirect or generate spending 3. Induced or additional spending 4. Leakage 1. Direct spending: What the visitor spends in a visitor-related business Money spent by tourists on products and services they need for their holidays. Examples? 2. Indirect or generate spending  Expenditure of tourism/ hospitality businesses on goods and services indirectly related to their business. Flow-on effects to industries that do not have direct contact with the visitor but produce goods or services for Tourism/Hospitality businesses. Examples? 3. Induced or additional spending Expenditure of income from people/organisations that have earned directly or indirectly from the direct spending of the tourist.  Examples? These different spending types have a multiplier effect. When the level of tourism spending increases(direct spending) so is the indirect and induced spending and reciprocally when the level declines. Direct spending does not always have the chance to affect indirect spending and induced spending positively because tourism money leaves the host community. It is referred to as Leakage. Examples of leakage: Transfer of tourism revenues out of the host country  by investors. Imported international products to fulfil tourists needs such as food/drinks/souvenirs/tours. All inclusive holiday tour packages for which 80% goes to airlines, hotels and international companies. Not much goes to local businesses or workers. (United Nations Environment Program (UNEP) 2013) The money which leaves the host community has an unfavorable economic effect on a host country. Leakage may be so significant in some developing countries that it partially neutralizes the money generated by tourism. Tourism profit is lost to foreign investors Examples: 70% of all money spent by tourists ends up leaving Thailand (Foreign-owned tour operators/ International hotels/airlines imported food and drinks). It ranges between 80% in the Caribbean and 40% in India. (UNEP 2013) `Of each US$100 spent on a vacation tour by a tourist from a developed country, only around US$5 actually stays in a developing-country destination's economy’ (UNEP 2013) Import leakage takes place in all countries and this include developed countries. However it is to a lesser degree(10 to 20% maximum in most developed countries). For example the Kaiser in Tirol hotel in Austria,  an award-winning leader in sustainable practices cannot find organic food locally and needs to import from other destinations. Export leakage Big corporation invest in the construction of tourism infrastructure and facilities such as hotels and resorts, roads, factories... Investors are taking their investment profit back to their country of origin to pay back their debt.