Welcome to Hospitality: An Introduction PDF

Welcome to Hospitality …an Introduction 3rd Edition Welcome to Hospitality...an Introduction 3rd Edition KAYE (KYE-SUNG) CHON, PH.D., CHE Chair, Professor, and Director School of Hotel and Tourism Management The Hong Kong Polytechnic University THOMAS A. MAIER, PH.D President, TAM-Global Serv...

Welcome to Hospitality …an Introduction 3rd Edition Welcome to Hospitality...an Introduction 3rd Edition KAYE (KYE-SUNG) CHON, PH.D., CHE Chair, Professor, and Director School of Hotel and Tourism Management The Hong Kong Polytechnic University THOMAS A. MAIER, PH.D President, TAM-Global Services Inc. International Professor of Service Leadership and Innovation Rochester Institute of Technology in Dubai Australia Brazil Japan Korea Mexico Singapore Spain United Kingdom United States  Welcome to Hospitality... an © 2010, 2000, 1995 Delmar, Cengage Learning Introduction, 3rd Edition ALL RIGHTS RESERVED. 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Printed in Canada 1 2 3 4 5 6 7 15 14 13 12 11 10 09 This page intentionally left blank Contents Preface................................................... xiii PART 1 THE SPIRIT OF HOSPITALITY............... 3 Ch 1: Welcome to the Hospitality Industry..................... 5 The Scope of the Hospitality Industry............................... 6 Business Profile: Post Hotel and Spa............................... 11 Professional Profile: Ian Schrager................................. 13 Service—The Mission and Product of Hospitality...................... 14 Business Profile: Starbucks...................................... 15 A Day in the Life of... A Front Desk Clerk.......................... 24 Pursuing Opportunities in Hospitality............................. 25 Professional Profile: Michael Murphy.............................. 27 End-of-Chapter Exercises....................................... 37 Ch 2: Travel and Tourism: Partners in Hospitality............... 39 The Relationship of Hospitality to Travel and Tourism.................. 40 Business Profile: Alaska Airlines.................................. 44 A Day in the Life of... A Travel Agency Manager..................... 48 Professional Profile: Thomas Cook................................. 50 Marketing and Promoting Tourism and Travel........................ 55 Business Profile: The Cove Atlantis Resort Hotel...................... 56 Business Profile: Disney Theme Parks.............................. 63 The Effects of Hospitality, Tourism and Travel........................ 64 Graduate Glimpse: Nandita Sharma............................... 65 End-of-Chapter Exercises....................................... 75 vii viii Contents PART 2 LODGING............................. 79 Ch 3: Dynamics of the Lodging Industry....................... 81 The Evolution of Lodging Facilities................................ 82 Classifying Lodging Properties................................... 85 Professional Profile: Barry Sternlicht............................... 88 A Day in the Life of … A Concierge............................... 95 Types of Lodging Ownership.................................... 97 Marketing................................................. 103 Business Profile: Hyatt Hotels and Resorts........................... 107 Graduate Glimpse: Ryan Eddy................................... 108 End of Chapter Exercises....................................... 113 Ch 4: Hotel Development................................. 115 An Overview of the Process..................................... 116 Choosing the Right Location..................................... 118 Business Profile: Four Seasons Hotel............................... 119 Business Profile: Las Vegas (Nevada) City Center...................... 121 Professional Profile: Steve Wynn.................................. 122 Assessing Feasibility.......................................... 125 Fiscal Commitment to the New Hotel.............................. 129 A Day in the Life of … A Market Analyst........................... 130 Design of the New Hotel....................................... 137 End of Chapter Exercises....................................... 145 Ch 5: Hotel Management and Operations..................... 149 Basic Management Structure.................................... 150 Graduate Glimpse: Jeremy Ashby................................. 154 A Day in the Life of... The Chief Engineer.......................... 162 Human Resources Management Issues............................. 165 Business Profile: Red Roof Inns.................................. 167 Producing an Efficient and Profitable Operation....................... 176 Referrals and Ratings Systems................................... 179 End-of-Chapter Exercises....................................... 184 PART 3 FOODSERVICE........................ 187 Ch 6: Hospitality and the Foodservice Industry................. 189 The Relationship of Market, Concept, and Menu....................... 190 Contemporary Commercial Foodservice Concepts...................... 202 Business Profile: Roy’s Restaurants................................ 202 Restaurant Ownership......................................... 212 Professional Profile: Guy and Franck Savoy.......................... 213 Business Profile: Howard Johnson’s................................ 216 Commercial Restaurants Within Other Businesses..................... 217 Business Profile: Kimpton Hotels................................. 218  Contents ix Contemporary On-Site (Institutional) Foodservice...................... 221 Graduate Glimpse: Michele Polci................................. 227 End-of-Chapter Exercises....................................... 230 Ch 7: Introduction to Culinary Arts.......................... 233 Historical Overview of Cookng and the Culinary Arts................... 234 Elements of American and European Fine Dining...................... 236 Professional Profile: Auguste Escoffier.............................. 238 Graduate Glimpse: Chef Profile: Mark Baker......................... 240 A Day in the Life of... A Chef................................... 242 Menu Planning and Development................................. 245 The Production Cycle......................................... 251 Social Issues................................................ 257 End-of-Chapter Exercises....................................... 265 Ch 8: Beverage Management............................... 269 Trends in Beverage Consumption................................. 270 Wines.................................................... 276 Business Profile: “Pure”—Las Vegas Caesar’s Palace Hotel............... 276 Professional Profile: Dom Perignon................................ 282 Business Profile: Rothschild’s Winery.............................. 286 A Day in the Life of... A Sommelier............................... 291 Liquors................................................... 292 Malt Beverages.............................................. 297 Risk Management and Liquor Liability............................. 300 End-of-Chapter Exercises....................................... 304 PART 4 SPECIALIZED SEGMENTS OF THE HOSPITALITY INDUSTRY....................... 307 Ch 9: Meetings, Conventions, and Special Events............... 309 Meetings, Conventions, and Expositions............................ 310 Opportunities in the Meetings Industry............................. 323 A Day in the Life of... A Meeting Planner.......................... 325 Business Profile: Loews Anatole Hotel.............................. 328 Sports Management Career Opportunities........................... 329 Professional Profile: J. Williard “Bill” Marriott........................ 332 End-of-Chapter Exercises....................................... 334 Ch 10: Recreation and Leisure.............................. 337 Managing Leisure Segments of the Hospitality Industry................. 338 Novel Lodging Facilities........................................ 341 Clubs..................................................... 343 Health and Wellness Facilities................................... 347 Recreational Facilities......................................... 349 x Contents Graduate Glimpse: Joe Vandel Heuvels............................. 355 Business Profile: Grand Teton Lodge Company........................ 356 Professional Profile: Samuel Cunard............................... 359 End-of-Chapter Exercises....................................... 363 Ch 11: Global Gaming and Casino Operations................. 365 History of Gambling and Current Status............................ 366 Business Profile: Weathering the Storms: Harrah’s New Orleans........... 374 Major Players in America...................................... 375 The Pros and Cons of Gambling.................................. 377 Similarities and Difference Between Casinos and Other Hospitality Operations......................................... 379 Security and Surveillance....................................... 382 Power Structures............................................ 382 Budgets and Finance.......................................... 383 Casino Customers............................................ 383 Casino/Resort Organizational Structure............................. 385 A Day in the Life of... A Casino Manager........................... 387 Mechanicals or Slots.......................................... 393 Slot Service Personnel......................................... 394 End of Chapter Exercises....................................... 397 PART 5 THE FUTURE AND YOU.................. 401 Ch 12: Globalization and the Future of Hospitality.............. 403 Economic Climate............................................ 404 Demographics and Socioeconomic Trends............................ 405 Technological Innovations...................................... 407 Professional Profile: Ellsworth Statler.............................. 408 Government Regulation and the Hospitality Industry................... 411 Unions................................................... 412 Focus on the Future.......................................... 413 Trends.................................................... 428 Ethics in Hospitality.......................................... 434 End-of-Chapter Exercises....................................... 436 Ch 13: Building for Success................................ 439 Some Basic Business Skills...................................... 440 Steps to a Career in Hospitality.................................. 445 Professional Profile: Adrian Zecha................................. 448 Getting the Job.............................................. 453 A Day in the Life of... A Human Resources Director................... 457 End-of-Chapter Exercises....................................... 461  Contents xi APPENDICES Appendix A Commonly Used Acronyms......................... 465 Appendix B Hospitality Industry Associations and Organizations...... 469 Glossary.................................................. 473 Index.................................................... 483 This page intentionally left blank Preface Welcome to Hospitality: An Introduction, 3rd Edition explores the fascinating worlds of lodging, foodservice, meeting planning, travel and tourism, gaming, sports management, revenue management principles, and the related busi- nesses that make up the hospitality industry. This edition identifies the latest trends found throughout the industry and addresses what the industry is do- ing to adapt to modern technology. Perhaps you are considering a career in hospitality. If so, this book will help you decide. Alternatively, you may have already decided to pursue a career in hospitality but want to broaden your understanding of the industry. If so, this book will help you understand how all parts of the industry are related. Welcome to Hospitality is designed to: Arouse your interest in the many career opportunities available in the industry. Help prepare you for the challenges faced by professionals in hospitality management. Explore trends that will have an impact on your future in the industry. Provide a global perspective on present and future industry issues. Suggest directions for educational and professional development. Share the enthusiasm and excitement that are part of the hospitality spirit. Background While hospitality is an “industry,” its roots lie in social and cultural life. Throughout history, the industry has been shaped by the societies and cultures in which it has grown. Societal and cultural issues continue to shape the industry—issues like environmental concerns, economic changes, the increase in women business travelers, and legislation affecting smoking in restaurants. Today, leadership in the hospitality industry goes far beyond traditional skills in operations. Leaders must be able to understand and predict how hos- pitality will be affected by the changing world. Welcome to Hospitality describes xiii xiv Preface the industry in relation to social trends and cultural patterns. It will help you develop the leadership skills that are so important in this dynamic industry. Perhaps the most striking contemporary trend affecting the hospitality in- dustry is “globalization.” Nations no longer exist in quiet independence but in growing interdependence. As a result, Western countries and cultures have begun to recognize the strength, vitality, and complexity of other nations and cultures. The third edition of Welcome to Hospitality has been revised with a deep appreciation of other traditions and cultures. But it is not an “inter- national” book in the sense that all cultural and historical forms of hospitality are represented. The authors acknowledge that their own cultural heritages and industry experiences are limited. Through history, the spirit of hospitality embodied the obligations to treat strangers with dignity, to feed them and provide them with drink, and to pro- tect their safety. As the world becomes increasingly smaller and more aware of its vast diversity, this “spirit of hospitality” seems especially important. Wel- come to Hospitality invites you to share in this spirit. Supplements Instructor’s Manual An Instructor’s Manual is available to accompany this text. Included in the Instructor’s Manual are correlations of chapter objectives and end-of-chapter exercises and activities to the SCANS (Secretary’s Commission on Achieving Necessary Skills) competencies. The Instructor’s Manual also contains chapter outlines, answers or suggested solutions to all end-of-chapter exercises, chap- ter tests and answers, and transparency masters. Instructor Resources CD New to this edition, an Instructor Resources CD is available to accompany this text. In addition to the Instructor’s Manual contents, the Instructor Resources CD contains an ExamView® computerized test bank and PowerPoint© lecture slides to accompany each chapter. Organization and Content Welcome to Hospitality…An Introduction, 3rd Edition is organized into five parts and thirteen chapters. Part 1, The Spirit of Hospitality, includes two introductory chapters. Chapter 1, Welcome to the Hospitality Industry, defines hospitality from the perspective of the guest. It introduces the various segments of the industry as well as important themes that are presented throughout the text. Chapter 2, Travel and Tourism: Partners with Hospitality, helps you un- derstand the relationship between travel and tourism on one hand and lodging and related hospitality businesses on the other.  Preface xv Part 2, Lodging, explores the lodging industry, past and present. Chapter 3, Dynamics of the Lodging Industry, explores the evolution of the lodging industry and classifications of various lodging properties and prototypes. Chapter 4, Hotel Development, introduces you to hotel development, including the planning, forecasting, design, construction, and opening processes. Chapter 5, Hotel Management and Operations, provides an overview of the management and operation of a hotel. Management structure, human resources, and the function of each department are discussed. Part 3, Foodservice, covers the foodservice industry. Chapter 6, Hospitality and the Foodservice Industry, presents the variety of commercial and on-site foodservice types. You win learn to analyze a foodservice operation in terms of its market, concept, and menu. Chapter 7, Introduction to Culinary Arts, outlines the traditions of culi- nary arts, the organization of the kitchen, and the production cycle. Chapter 8, Beverage Management, introduces you to the variety of bev- erages that have traditionally been part of foodservice. You will learn about winemaking, brewing, and distilling. This chapter also emphasizes the responsibility hospitality operations have toward guests concerning alcohol consumption. Part 4, Specialized Segments of the Hospitality Industry, introduces industry segments that cater to business travelers and long-term guests and that manage leisure and recreation activities for guests. Although these segments are not necessarily related to each other, foodservice and lodging play a vital role in their operations. Chapter 9, Meetings, Conventions, and Special Events, introduces you to the rapidly growing meeting, convention, exposition, sports management, and long-term health-care industries. Chapter 10, Recreation and Leisure Industry, presents recreation manage- ment and theme parks, resorts, and related segments of the hospitality industry. Chapter 11, Global Gaming and Casino Operations, presents the major players in the industry and the pros and cons of gambling. The casino customer is profiled, along with career opportunities in the fast-growing gaming industry. Part 5, The Future and You, looks at the impact of the twenty-first century on hospitality and tourism. Chapter 12, Globalization and the Future of Hospitality, explores the future of the hospitality industry in terms of demographic, global, and technological trends. xvi Preface Chapter 13, Building for Success, looks to your future in the hospitality industry and suggests ways that you can plan for success. New to This Edition The third edition of Welcome to Hospitality: An Introduction has been updated by unique industry perspectives and professional profiles, comprehensive ca- reer opportunities in the hospitality and tourism network, practical industry applications, new-graduate glimpses, new references, and an extensive chapter on gaming. A truly exhaustive revision, the third edition features the follow- ing chapter-by-chapter enhancements: Chapter 1: Welcome to the Hospitality Industry This chapter has added new introductory sections on special events manage- ment, sports management, and gaming with updated business profiles reflect- ing current trends within the hospitality and tourism network. Chapter 2: Travel and Tourism: Partners with Hospitality Includes updated statistical data related to international tourism expenditures and world tourism growth overall. Chapter 3: Dynamics of the Lodging Industry Has expanded coverage of the growing lodging sector, featuring hotel product types that are new to the industry. Also presents the world’s largest lodging/ management companies, with insight into the idiosyncrasies of third-party managerial contracts. Chapter 4: Hotel Development Offers extensive coverage of specific hotel development criteria and building econometrics. Presents and discusses financial pro forma feasibility studies that include cost estimates of new hotel prototype development. Provides a breakdown of the top hotel brands among management companies. Chapter 5: Hotel Management and Operations This chapter has been substantially expanded and updated because of grow- ing interest in operations management and financial performance. We have added new material on revenue management and its importance in yielding higher profit margins. Also discussed is the latest in organizational structure, reflecting current salary ranges found in the lodging sector. Chapter 6: Hospitality and the Foodservice industry Includes new material on the top ten independent restaurants in the United States, as well as statistical data on sales volumes, average checks, and meals served. There is also new information on consumer choice top selected chain restaurant winners, and industry perspectives on franchise strategy and cost- benefit analysis of independent versus owned restaurants.  Preface xvii Chapter 7: Introduction to Culinary Arts Offers updated information and material on culinary certification programs, including master chef, executive chef, and pastry chef positions. Chapter 8: Beverage Management New discussions have been included on the trends and new products in the beverage industry. Top beverage brands are highlighted by market share and new information is included on emerging international wine regions. Chapter 9: Meetings, Conventions, and Special Events This chapter provides a new section identifying the growing trends in event planning and management. Career opportunities are identified in the club and sports management fields, with specific careers in event planning presented. Updated figures and tables help to break down revenues and expenditures associated with the convention, exhibition, and meetings industry. Chapter 10: Recreation and Leisure Industry Presents new coverage of market profiles and career opportunities associated with the burgeoning cruise ship industry, There are also new statistics on the top ten luxury resorts in the world, plus an expanded section on sustainable tourism. Chapter 11: Global Gaming and Casino Operations This chapter examines the legalization of casinos and the history of gambling worldwide. The chapter shows how American casinos are different from other global ventures and who the major casino companies are today. It discusses the pros and cons of allowing casinos to open, as the establishment of new gaming jurisdictions slows down in America following a series of industry mergers. The chapter closes by discussing the details of gaming operations and the career opportunities they offer. Chapter 12: Globalization and the Future of Hospitality Presents updated statistical information on the world’s fifty largest hotel chains, consumer satisfaction indexes, and trends in changing hospitality workforce demographics. Included is in-depth coverage and discussion of the future of technology and its importance to online travel planning, revenue management systems, and video conference capabilities. Chapter 13: Building for Success This chapter has been updated to reflect current statistical data on the pro- jected growth of food service and lodging industry managerial occupations, as well as current reference sources for travel industry and hospitality related jobs. xviii Preface Learning Tools The revised edition of Welcome to Hospitality provides a number of tools to help you learn. Overview and Objectives Each chapter begins with an overview that outlines what you should learn. The objectives that follow help you focus on the main points and see the se- quence of information that will be covered. Key Terms As you work through this book, you will notice that we have set important industry terms in boldface and have defined them in context when introduced. Also, we have spelled out acronyms the first time they appear in the text. All key terms are listed in the Glossary, and Appendix A provides an alphabetical listing of the most commonly used acronyms for terms and organizations in the industry. Feature Pages Throughout the chapters, you will find a variety of interesting feature articles. Professional Profiles present the lives, achievements, and contributions to the industry of individuals such as Barry Sternlicht, Thomas Cook, and J. Willard Marriott. A Day in the Life of... features give an inside look at various careers in the industry. They provide background information on job responsibilities, daily tasks, and attributes needed to be successful on the job. Business Profiles provide an historical perspective on leading companies including Disney Theme Parks, Hyatt Hotels and Resorts, and Roy’s Restaurants. Graduate Glimpses convey current information and peer advice from suc- cessful hospitality graduates. Industry Insights provide interesting facts and trivia on history, law and ethics, culture, technology, business innovations, and the environment. Chapter Summary Each chapter ends with a summary of the topics and issues covered in the chapter to help reinforce its learning objectives and prepare you for the exer- cises and critical thinking activities that follow. End-of-Chapter Exercises Check Your Knowledge questions test your recall on topics discussed throughout the chapter. Apply Your Skills activities focus your knowledge on industry pro- blems. What Do You Think? questions challenge your critical thinking skills on issues relevant to the material in each chapter. Case Studies provide scenarios for further discussion and activities. The Internet Exercises, new to this edition, encourage investigation of a variety of topics on the World Wide Web.  Preface xix Biographical Information Kaye (Kye-Sung) Chon, Ph.D., is a former Professor and Director of the Tourism Industry Institute at Conrad N. Hilton College at the University of Houston in Houston, Texas. Currently, Dr. Chon is the Chair Professor and Director of Hotel and Tourism Management at the Hong Kong Polytechnic University. He has published over two hundred articles on hospitality industry issues. Dr. Chon is the executive editor of the Journal of Hospitality and Tourism Research as well as editor-in-chief of the Journal of Travel and Tourism Marketing and the Asia Pacific Journal of Tourism Research. In 1993, Dr. Chon received the presti- gious John Wiley & Sons Award from the Council on Hotel, Restaurant, and Institutional Education for his lifetime achievement in scholarship and research. Thomas A. Maier, Ph.D., is an International Professor of Service Leadership and Innovation at the Rochester Institute of Technology in Dubai. He is also the president of TAM—Global Services Inc. He has acquired a wide range of hospitality, development, and practical business experience over the past twenty-five years working for the Starwood and Red Lion Hotel brands. Most recently, he served as vice president of hotel operations for the Red Lion Hotel Corporation from 2001 until 2008, having held various manage- ment positions within that corporation since 1992. Dr. Maier was recently named the recipient of the RIT—2008 Dr. Paul Kazmierski Memorial Award from the School of Hospitality and Service Management for his achievements in and commitment to the field of human resource development. Kathryn Hashimoto, Ph.D., author of the Global Gaming and Casino Opera- tions chapter, is associate professor in the Department of Hospitality Manage- ment at East Carolina University. She received a PhD in Marketing from Century University, and a PhD in Curriculum and Instruction from the Uni- versity of New Orleans. Her research interests are international consumer be- havior, advertising, service management, and gaming. She is a renowned author and researcher and her articles have appeared in gaming and hospital- ity industry publications. Reviewers JOHN N. MELLON DENIS P. RUDD Misericordia University Robert Morris University Dallas, PA Moon Township, PA RICHARD J. MILLS, JR. JAN VAN HARSSEL Robert Morris University Niagara University Moon Township, PA Niagara, NY KEN MYERS University of Minnesota, Crookston Crookston, MN Photography Credits for Part Opener Images: Part Openers I, II, III: Image copyright © Jim Smith Photography. Part Opener IV: Image copyright Gary Paul Lewis, 2009. Used under license from Shutterstock.com Part Opener V: Image copyright James Steidl, 2009. Used under license from Shutterstock.com  P A R T 1 The Spirit of Hospitality A universal symbol for hospitality is the pineapple. While the exact origin of this symbol is unknown, many believe ch1 Welcome to the the idea was borrowed from the people—most likely in- Hospitality habitants of Brazil—who first domesticated the pineap- Industry ple.1 These people placed pineapples outside their homes to signify that visitors were welcome. European ch2 Travel and explorers introduced the fruit to Europe and the Ameri- Tourism: Partners can colonies in the seventeenth century. As the exotic with Hospitality fruit was rarer and more costly than caviar, it symbolized the very best in hospitality. It was used to welcome and honor royal and wealthy guests. The idea of hospitality, of course, dates back much further—from historical evidence found at the first cen- ters of civilization (such as Mesopotamia in present-day Iraq), to Biblical references of the washing of guests’ feet, to later accounts of English innkeepers receiving weary travelers over a mug of ale. The core concept of hospital- ity, however, has remained the same: to satisfy and serve guests. In this text you are offered the proverbial pineapple as you embark on a journey to explore the world of manag- ing guest service. Welcome to the hospitality industry! This page intentionally left blank  ch1 Welcome to the Hospitality Industry O V E R V I E W What is hospitality? Ask this of fifty people and you are likely to receive fifty different answers. “Receiving O B J E C T I V E S guests in a generous and cordial manner.” “Creating a pleasant or sustaining environment.” “Satisfying a When you have completed this chapter, you should be able to: guest’s needs.” “Anticipating a guest’s desires.” 1 Define hospitality industry and “Generating a friendly and safe atmosphere.” Each provide at least one specific speaker has an intuitive (and correct) expectation of example of both successful and unsuccessful hospitality that you what hospitality is and isn’t. have experienced. What is the hospitality industry? Finding one all- 2 Identify the basic components of the hospitality industry. encompassing description of hospitality as an industry 3 Explain the relationship between is as difficult as defining hospitality. The hospitality guest satisfaction and employee industry—comprising businesses that serve guests responses during a service encounter. away from home—can be defined by its scope, mis- 4 Compare the benefits of obtain- sion, and providers. As you work through this book, ing a formal education and your definition of hospitality industry will be continu- acquiring experience. ally updated and refined, expanded and honed. In 5 Recommend ways to ensure learning and growth throughout these pages, you will become familiar with the indus- a hospitality career. try’s past, present and future, consistently building upon your understanding of what hospitality—and the industry surrounding it—are. This chapter introduces the industry by (1) outlining its scope, (2) examining its mission, and (3) describing ways to pursue its many career opportunities. 5 6 The Spirit of Hospitality K E Y T E R M S amenities Gestalt evaluation millennial generation cuisines hospitality and tourism on-line distribution entrepreneur network service encounter fusion cuisines hospitality industry tourism Gen-Xers labor-intensive trends The Scope of the Hospitality Industry Historians have traced the development of the hospitality industry through thousands of years and many cultures. Viewing the industry through the lens of history is helpful because it reveals the strong relationship between the shape of hospitality and the needs and expectations of different societies. Because societies will continue to change in what they need and want, the hos- pitality industry will also continue to change. Future leaders within the indus- try will need to be focused on the ever-changing workforce and the evolving expectations of the traveling consumer. The hospitality industry encompasses a wide range of businesses, each of which is dedicated to the service of people away from home. Today, career opportunities are available in many facets of the hospitality and tourism field. They include the tourism management, human resource management, special events management, sports management, club management, and gam- ing sectors. An Age-Old Industry Historians speculate that the first overnight lodging structures were erected along Middle Eastern trade and caravan routes around four thousand years ago. These structures, the caravanserai, were at eight-mile intervals and oper- ated much like the present-day Middle Eastern kahns in that they provided shelter (for both humans and beasts) but nothing else. Provisions—food, water, and bedding—were supplied by the traveler. Early accounts of these establishments reveal physical conditions that would be considered harsh by today’s standards. However, the spirit of hospitality was strong, perhaps espe- cially so in the Middle East. A traditional Middle Eastern saying illustrates devotion to hospitality: “I am never a slave—except to my guest.”2 (More on the history of lodging facilities is found in Chapter 3.) In many countries, the quality of hospitality services varied according to the fees paid and the location of an establishment. Some early accounts tell of vermin-infested inns and poor-quality food, but not all were bad. For example, lesches, social gathering places in ancient Greece, had a reputation for good  Welcome to the Hospitality Industry 7 Image not available due to copyright restrictions food. Guests could choose from a variety of delicacies, including goat’s milk cheese, barley bread, peas, fish, figs, olives, lamb, and honey.3 Guests also had their choice of lesches to frequent—Athens alone had 360!4 (More food and beverage history is found in Chapter 7.) As mentioned earlier, the word hospitality has religious, social, and cultural significance. For instance, in the New Testament of the Bible (New International Version), the word hospitality appears in five instances. Romans 12:1, for example, says “Share with God’s people who are in need and practice hospitality.” Implied here is that genuine hospitality comes only when you have the spirit of “sharing” with care, con- cern, and love for the other people’s well-being. Fine service could also be found in ancient Rome, circa A.D. 43: “There were hotels on all main roads and in the cities, the better ones having a restau- rant, a lavatory, bedrooms with keys or bolts…and also a yard and stabling. An inn at Pompeii had six bedrooms round two sides of an inner courtyard, with a kitchen on the third side. Its large bar and restaurant were a little ways away, on the main street.”5 Roman society had a singular influence on the hospitality industry. Many of Rome’s citizens were wealthy enough to travel for pleasure, and well-built Roman roads gave them easy access to most of the known world. As soldiers conquered new areas, Roman citizens could visit exotic places in comfort. Communication between guest and host presented no problems, as Latin had become a universal language. (In fact, much hospitality terminology springs from Latin: hospe means host or guest; hospitium means a guest chamber, inn, 8 The Spirit of Hospitality Industry Insights L A W A N D E T H I C S were not allowed to act as guardians for minor children.2 Early Regulation of the Hospitality Sometimes regulations were set forth by tav- Industry ern owners. In sixteenth-century England, rules The earliest known regulation of the hospitality such as the following were common: No more industry is found in the Code of Hammurabi. than five people in one bed; no boots to be worn During Hammurabi’s rule over the Old Babylo- in bed; no razor grinders or tinkers to be taken nian Empire from 1792 to 1750 B.C., he devel- in; no dogs allowed in the kitchen; organ grin- oped what was considered a wise and fair set of ders must sleep in the wash house.3 laws The code required the landlady of a tavern Although some of these old regulations seem to report any guest who planned crimes. The preposterous, early regulations helped further code also forbade adding water to drinks or the development of the industry, and some still giving false measures. The penalty for these are on the books today. “crimes” was death by drowning.1 By the time of the Roman Empire, regulations 1 W.C. Firebaugh, The Inns of Greece and Rome; And a had changed. For example, the wife of an inn- History of Hospitality from the Dawn of Time to the keeper could not be punished for disobeying the Middle Ages (Chicago: F.M. Morris Company, 1923). laws against adultery; innkeepers were not 2 Ibid. allowed to serve in the military because the mil- 3 Fernand Braudel, The Structures of Everyday Life, itary was an honorable service; and innkeepers Volume I (New York: Harper & Row, 1982). or quarters. Other related words with this root include “hospice,” “hostel,” “hospital,” and “hotel.”6) With the fall of the Roman Empire, travel declined and inns became almost nonexistent. From the fourth through the eleventh centuries, the Roman Cath- olic Church kept the hospitality industry alive by encouraging religious pil- grimages between monasteries and cathedrals throughout Europe. Roads were built and maintained by clergy from the local monasteries. Hostels built on church grounds offered places to eat and sleep. Churches did not charge for these accommodations, although travelers were expected to make a contri- bution to the Church. When travel and trade gradually increased in Europe, the monasteries remained a major hospitality provider for both the business and recreational traveler. Besides priests and missionaries, other travelers, including traders, mer- chants, diplomats, and military personnel, traveled the expanding Mediterra- nean and European roadways. Not all these wayfarers were taken care of by the Church; independent innkeepers also welcomed travelers on their jour- neys. When a group of Italian innkeepers incorporated in the year 1282, hospi- tality evolved from an act of charity to a full-fledged business.  Welcome to the Hospitality Industry 9 Private ownership in England flourished less quickly. In 1539, as part of his dispute with the Roman Catholic Church, England’s King Henry VIII declared that all lands owned by the Church were to be given away or sold. This decree inadvertently caused the growth of innkeeping because it required that churches give up their hostels. The Church lost its role as host and innkeeper, and private inns multiplied. (We discuss contemporary political influence on the hospitality industry in Chapter 12.) Hospitality and the Tourism Network From its simple origins as a collection of privately owned, independently operated businesses, the hospitality industry has grown in complexity and size. Today’s hospitality businesses interact with one another on a global basis, and must stay aware of what is happening around them. For example, hotel investment companies, developers, joint ventures, management companies, and hotel chains now spread across the world. Economic conditions in Asia may affect a company’s holdings either there or in its home country. An American hotel company may be a joint venture partner with an Asian com- pany that builds hotel projects all over the world. Hospitality businesses are also closely intertwined with those in the travel and tourism industry. Tourism is travel for recreation or the promotion and arrangement of such travel. Tourism and the hospitality industry so strongly affect one another that some associations and industry leaders, including the Council on Hotel, Restaurant and Institutional Education (CHRIE), consider the combined industries of hospitality and tourism as one large industry—the hospitality and tourism industry. The components of this large industry include (1) food and beverage services, (2) lodging services and ski resorts, (3) recreation services, (4) campgrounds and theme parks, (5) travel-related (tourism) services, (6) the gaming industry, and (7) products provided with personal services in conjunction with the first four components. Because these components are separate and often competing industries, this group of indus- tries will be referred to in this text as the hospitality and tourism network. We use “network” in the sense of an interconnected set of parts or compo- nents.7 (See Figure 1.1 for an overview of the hospitality and tourism net- work.) Sometimes this large network is referred to simply as the hospitality industry, especially because it emphasizes the responsibility of industry per- sonnel to be hospitable hosts and managers of all services offered.8 This chapter focuses on the two major components of the hospitality por- tion of the network: lodging services and food and beverage services. But first we will discuss the interrelatedness of the network’s components and the global forces that can affect them all. Industry Connections and Global Forces In Chapter 2 you will learn how the various components of the loosely knit global network of tourism and hospitality interrelate. Throughout the remaining chapters, but especially in Chapter 12, we will discuss how global forces affect 10 The Spirit of Hospitality Catering and Food & Banquets Beverage Sevices Airline with Other Industry Businesses Restaurants Separate from Other Businesses FOODSERVICE TRANSPORTATION INDUSTRY INDUSTRY COMPONENTS Beverage Maritime Establishments Industry Institutions Ground Transportation Industry Clubs MERCHANDISE TRAVEL HOSPITALITY COMPONENT AND INDUSTRY (Products related to TOURISM other components) Travel Agency Institutions Industry Clubs Tour Hotels/ Operator Motels Industry LODGING INDUSTRY COMPONENT RECREATION, SPORTS, AND ENTERTAINMENT Convention Resorts COMPONENT Hotels FIGU RE 1.1 Hospitality and Tourism Network  Welcome to the Hospitality Industry 11 Business Profile P O S T H O T E L A N D S P A services. The distinguishing feature of the Post Hotel and Spa is its reputation as a rustic resort in Luxury Ski Resort Positioned as a proximity to Banff National Park and Lake Louise Destination Resort Ski Area. Since 1942, the Post Hotel and Spa has been recognized as a gourmet dining destination Hotel and resorts may be positioned to offer as well. The wine cellar at the Post Hotel and Spa is services in many different market segments. The said to feature more than 28,000 bottles of wine. Post Hotel and Spa offers a product specifically Guests can enjoy a long, hard day skiing and relax targeted to recreational skiers. The hotel is situated with a spa treatment and gourmet meal, while in a majestic resort location in the Canadian enjoying picture-perfect mountain scenery. Rockies. The Post Hotel and Spa offers luxurious accommodations, fine dining, and wellness/spa Source: http://www.posthotel.com this complex network. Those forces are analyzed to discover trends (prevailing tendencies or general movements), which may be sociocultural, economic, tech- nological, or geopolitical. These changes are dramatically affecting the exchange of goods and services worldwide, challenging industry leaders to find new ways to compete while creating new and exciting opportunities. They also illus- trate the dynamic nature and ever-increasing globalization of the industry. Image not available due to copyright restrictions 12 The Spirit of Hospitality Workforce Issues For the first time in the history of the modern workforce, hospitality employees are working closely with people who are as young as their children and as old as their parents. Managers are realizing that age has just as much to do with employees’ hopes, learning styles, and expectations as do culture, gender and other characteristics. By understanding each generation and by giving employees what they need to thrive, leaders can do more to in- crease productivity, morale, and employee retention. Merit is overcoming lon- gevity as the deciding factor that contributes to promotion. People from very distinct generations are competing for leadership positions in the workplace. Baby boomers, Gen-Xers, and millennial generation employees compete for the same jobs, and often younger workers get them. Sometimes, because of the post-industrial info-centered work world, the person in charge may be younger than those he or she manages. As both Generation X and millennial generation workers bring skills that some baby boomers may not possess, they may end up finding themselves supervising either older or younger employees. The entrance of the baby boom generation into middle age has contributed to the trend known as the aging of America. Chapter 12 shows how such a trend affects opportunity. Experts predict that more senior citizens will be in the workforce, particularly in the food and beverage component of the in- dustry. In addition, as the senior population expands, institutions such as health care facilities and retirement centers will need a larger supply of work- ers to satisfy the increase in customers. Consequently, although the components of the hospitality and tourism net- work are continually changing with respect to labor, opportunity, and growth, the network will continue to dominate as a global industry. Lodging Industry Component Lodging best typifies the hospitality industry, because it involves providing overnight or longer-term services to guests. In the United States, the lodging industry employed 1.16 million people full time and part time and generated $85.6 billion in 1997.9 Today, hospitality is a growth industry that generates nearly $90 billion annually and employs nearly 18.5 million nationwide, a number that is expected to increase about 10 percent between now and 2012. For many people, lodging is simply a place to sleep. For others, lodging facili- ties are all-in-one operations that extend beyond providing a bed and include entertainment and recreation facilities. For this reason, the lodging industry has evolved to accommodate varying customer preferences—from budget motels to luxury hotels to all-inclusive resorts. In Chapter 3, you will learn about the specifics of lodging, including types of lodging facilities, owning and managing lodging operations, and marketing. You will learn about hotel development and operations in Chapters 4 and 5, conference and convention centers in Chapter 9, and resorts and casino hotels in Chapters 10 and 11.  Welcome to the Hospitality Industry 13 Professional Profile I A N S C H R A G E R artwork and creative decor, indoor/outdoor atrium lobbies, and metropolitan spa destina- Boutique Hotel Creator and Hotelier tions. In 1964 he opened the first such property, Morgans Hotel, with Studio 54 partner Steve Ian Schrager is known as a pioneer in the night- Rubell. club and hospitality industry. He is best known for his creation of Studio54 in New York City in Schrager went on to create urban boutique the 1970s. He has a keen talent for creating hotels in other highly visible, affluent cities, in- business concepts and the ability to capture the cluding London, Miami, and San Francisco. He is imagination of his clientele with his one-of-a- recognized as the creator of “urban chic,” which kind hotel venues. His unusual professional ex- connotes affordable luxury in the metropolitan pertise lies in his ability to combine the elements setting. Instrumental to Schrager’s success has of art, fashion, and culture in his hotel projects. been his ability to collaborate with artists, enter- He is best known for his exceptionally entrepre- tainers, and culinary experts. He has a keen sense neurial mindset and his ability to create arresting of how to pair unusual, creative concepts with design and decor and fashionable hospitality exceptional quality and service delivery. His concepts. latest partnership is with J.W. Marriott and the Marriott hotel brand. Schrager’s career began in the seventies with Source: Ian Schrager Companies, http://www. pioneering hospitality concepts such as the ianschragercompany.com “boutique hotel,” which featured signature Food and Beverage Industry Component The food and beverage component of the industry employed more than 10.2 million people in 1998. In 2005, the restaurant and accommodation industries employed 12.2 million people, or about 9 percent of all employed U.S. work- ers. This far-reaching industry, with nearly 799,000 facilities throughout the United States, ranges in scope from street vendors to four-star restaurants to institutions (colleges and hospitals, for example). Patrons enjoy a variety of cuisines, including food cooked and served in styles from around the world such as Chinese, Indian, Malaysian, Thai, French, Italian, Cajun, Japanese, American, and Mexican, as well as a variety of ethnic fusion cuisines. This variety is evident in all types of foodservice facilities and concepts. You might buy a tamale from a vendor on a street cor- ner, get sushi at a take-out bar, or have tea and scones at a British tearoom. Settings also include diners, twenty-four-hour coffee shops, French farm- houses, noodle shops, and other facilities with clever themes to draw the pub- lic. Generally, food and beverage establishments can be categorized in relation to the market served, concept, and menu. These will be discussed in more detail in Chapters 6, 7, and 8. 14 The Spirit of Hospitality Image copyright Agata Dorobek, 2009. Used under the license from Shutterstock.com In Chapter 6, you will explore the diversity of the foodservice component of the industry, including the many kinds of commercial restaurants and institu- tional food services. Chapter 7 presents foodservice careers, operations, social issues, and the art of food preparation. Chapter 8 examines the beverage com- ponent of the industry, including trends in beverage consumption, types of beverages, risk management, and liquor liability. Service—The Mission and Product of Hospitality When friends and relatives come to your home, you want them to feel com- fortable. You go out of your way to greet, serve, and entertain your guests. When you visit someone else’s home, perhaps you are treated to food, drink, and maybe even a comfortable bed. These amenities (features that add mate- rial comfort, convenience, or smoothness to social interactions) help define the behavior known as hospitality. This behavior is also a service. And service is the most important product of the hospitality industry. The Nature of the Product The intangibility of service makes it a little difficult for many people to see hospitality as an industry. Often, when people think of industries, they  Welcome to the Hospitality Industry 15 Business Profile S T A R B U C K S easy for customers to have a gourmet coffee blend, coffee drink, or espresso in the vicinity of Neighborhood Locations Serving their office or neighborhood created a worldwide Coffee for the World phenomenon. The entrepreneurial spirit of Howard Schultz led Starbucks to worldwide prominence. Its identity and marketing message are well re- ceived by customers. Starbucks takes pride in its earthy store design concepts, concern for the en- Image copyright Boguslaw Mazur, 2009. Used under license from Shutterstock.com vironment, and strong sense of community. The founder’s creative energy was not only exhibited in the décor and marketing messages, but also in the various types of coffees and espresso drinks available. The combination of personalized fla- vor combinations and gourmet coffee beans from around the world helped create an international brand identity second to none. As of February 2007, Starbucks had 7,521 company-operated outlets worldwide: 6,010 of them in the United States and 1,511 in other countries and U.S. territories. In addition, the company had 5,647 joint-venture and licensed outlets, 3,391 of them in the United States and 2,256 in other countries and U.S. territories. This brought the total number of locations (as of Coffee for the world February 2007) to 13,168 worldwide. Starbucks kiosks can be found in many popular grocery The Starbucks coffee empire began in Seattle in chains in the United States and Canada, as well 1971. It was founded by three partners and later as in many airports. In some cities, such as Los expanded under the leadership of Howard Angeles, there are actually two Starbucks stores Schultz. The linchpins of the Starbucks business located across the street from each other. In 2008, model are its neighborhood locations and its Starbucks announced the closure of over 50 gourmet coffee blends. Typically, Starbucks stores worldwide as a result of the slowing US stores are found on busy pedestrian corners in economy. urban centers. Starbucks’ practice of making it Source: http://www.starbucks.com picture large manufacturing complexes with towering smokestacks and noisy production lines. These industries produce tangible products that usually can be handled, stored for future use, and uniformly produced. Service, on the other hand, is an intangible product. Respect shown to a guest cannot be 16 The Spirit of Hospitality held in the hands; pulling out a chair for a guest cannot be stored for future use; and acceptable practices in one culture may be considered rude in an- other, rendering uniformity in service impractical. Some businesses related to hospitality also produce tangible products, such as special kitchen equipment used in commercial restaurants. But for most hospitality businesses, the main business is creating memorable experiences by furnishing services. Their shared mission is to provide services while also making a profit. James C. Penney, the retail store magnate, described this double-barreled task when he said, “If we satisfy our customers, but fail to sat- isfy our business, we’ll soon be out of business. If we get the profit, but fail to satisfy our customers, we’ll soon be out of customers.”10 Restaurants and hotels have a twofold purpose: to satisfy both the physical and psychological expectations of guests. They accomplish this through pro- viding a good product (the meal or the room) and a good service (delivering the meal or room appropriately). Issues Arising from Product Delivery Delivery of an intangible product leaves room for conflicting perceptions of its quality. Not only might people within the industry disagree on some theoreti- cal points, but customers and employees may view the service delivery from quite different perspectives. A once-in-a-lifetime experience for the guest is of- ten a routine occurrence for the employee. The guest is investing time, money, and emotions in the hope of receiving a pleasurable experience. All these are lost if the service fails to meet that expectation. The employee, however, can merely resolve to do better with the next guest. Perception of Value Service does not run on a continuum from good to poor. Such a scale is impos- sible because the variables involved in determining good or poor service— guest expectations and the firm’s image—are not fixed. Even the concept of value (also called relative worth) is based upon guest perception. It is fair to say, however, that most guests want quality service at a fair price. Guests perceive good service on the basis of their own expectations of the hospitality staff and their overall experience of the property. Their perception of value is based on the customers’ expectations in relation to how much they spend for the service and how much they would spend for a similar service elsewhere. Certainly, people do not expect the same services from a low-priced hotel as they do from a high-priced hotel. However, what they do expect are the same or better services at the hotel or restaurant where they are guests (and at the same or better prices) than at the competition (the hotels or restau- rants they didn’t choose to visit this time). Good service is often equated with the number of amenities, the degree of personal attention/interaction, and/or the speed of service delivery.  Welcome to the Hospitality Industry 17 While these factors are related to service, equating them with service quality is misleading. Service, and service quality, are contextually defined by the guest’s expectations as well as the organization’s image. Good service at an Applebee’s neighborhood restaurant is entirely different from good service at a Wolfgang Puck venue, yet both can provide quality service. The Service Encounter. The period of time in which a customer directly interacts with a service is known as the service encounter. That interaction may take place with either personnel or with physical facilities and other visible elements. If the hospital- ity establishment’s advertising leads a guest to expect valet parking, the pres- ence or absence of such service affects the guest’s perception of the firm. In human interactions, both guests and employees bring to the encounter certain expectations and personality traits. What do guests expect of hospitality establishments? The specific answer may vary, but will always include this: guests want, expect, and demand service, and that service must be delivered in a courteous, efficient manner. Guests measure the quality of service by comparing the services received with what they expected to receive, given the type of establishment offering the service. Five general elements comprise the scale by which service may be judged: (1) price-value, (2) reliability, (3) responsiveness, (4) assurance, and (5) empathy.11 Since a majority of these are an assessment of human inter- action, how an employee performs during a service encounter contributes heavily to the perception of quality service. A customer’s expecta- tions of service and quality vary based on appearance. Photo by Corbis/Joseph Sohm; ChromoSohm Inc. 18 The Spirit of Hospitality Most employee-guest interactions that significantly influence the guest’s perception of satisfactory or unsatisfactory service fall into one of three general categories:12 1. Employee response to service delivery system failure, commonly known as service recovery. When services that are normally available are lacking or absent (such as when a reservation is lost), when service is unreasonably slow, or when other failures occur in the core service system, the employee’s response plays a crucial role in the customer’s perception. Ideally, genuineness in response and flexibility exhibited by the server, followed by immediate corrective action, may save the cus- tomer experience and preserve future loyalty. An offer of monetary or in-kind relief may (or may not) be part of the genuine response to customer displeasure. As compensation, an upgraded room or free drink may be offered, and the encounter is usually perceived as satis- factory. But compensation is not the only solution. Plausible explana- tions and assistance in solving the problem are often enough to assuage the guest. On the other hand, if the employee offers no com- pensation, explanation, or solution, the encounter is usually perceived as unsatisfactory. The employee’s response can turn a negative experi- ence into a positive memory or magnify the original problem by cre- ating “two wrongs.” 2. Employee response to customer needs and requests. When the customer wants the service delivery system altered to meet unique needs, the employee’s response often means more than whether or not the need was met. Special needs include emergency situations, medical or lan- guage difficulties, customer preferences, specific dietary requirements, customer error, and dealing with the disruptive behavior of other cus- tomers. Once again, if the employee acknowledges the request and at least attempts to fulfill it (or explains why it cannot be fulfilled), the customer is usually satisfied. On the other hand, employee disinterest or unwillingness to consider resolving the service encounter leaves the customer dissatisfied. 3. Unprompted and unsolicited employee actions. The amount of attention or lack thereof given the customers will leave them feeling either pam- pered or frustrated. Taking extra time, providing additional information, or showing interest in the customer’s comfort are all employee responses that leave the customer satisfied. Truly out-of-the-ordinary behaviors also belong in this group, as do behaviors in the context of cultural norms, exemplary performance under adverse circumstances, and Gestalt evaluations. In the Gestalt evaluation, the service encounter is evaluated holistically— ”everything went right.” Also in this category are the cases where a customer has a series of encounters with one provider, and subsequently becomes a loyal patron or vows never to return.  Welcome to the Hospitality Industry 19 Unavailable Slow Nature of Other Failures ?Yes Request/Need? Special Needs Customer Is there a Preferences Service Nature of Delivery ?Yes Request/Need? Customer Error System Failure? Disruptive Others Is there an Implicit/Explicit No Request for Accomodation? Nature of Level of Attention ?Yes Request/Need? Is there an Unusual Action Unprompted/ No Unsolicited Cultural Norms Action by Employee? Gestalt No Adverse Conditions F I G U R E 1. 2 Incident Sorting Process of Service Encounters Source: Adapted from Mary Jo Bitner, Bernard H. Booms, and Mary Stanfield Tetreault, “The Service Encounter: Diagnosing Favorable and Unfavorable Incidents,” Journal of Marketing (January 1990): 76. Analyzing the Service Encounter The foundation of “good service” is not found in an abstract philosophy or set of rules. It certainly goes beyond saying “have a nice day” or answering the phone before the third ring. Rather, it emerges from interactive processes in which people respond with sensitivity and genuineness to serve in their spe- cific role(s). The employee begins by actively listening to discover the guest’s expectations. (See the problem-solving flowchart illustrated in Figure 1.2, Incident Sorting Process of Service Encounters.) Guest: Every time I stay at ABC Hotel, I miss room service hours. Seems like it’s never available. Employee: Sounds like you could use a bite to eat. Can I help you by hav- ing dinner delivered to your room? As you’ve learned, guest expectations help define what service is. Con- sequently, there is no universal situation that can illustrate good service. For example, you and a friend stop at a downtown eatery for a bite. You are in the middle of a shopping excursion and want to “eat and run.” However, the waitress has timed your meal to be a leisurely, hour-long 20 The Spirit of Hospitality lunch. Is this poor service? In your mind it might be, since your expecta- tion is to get in and get out of the restaurant as quickly as possible. For someone else, however, such a pace might be just what they wanted and expected, meaning they received good service. The key competitive advan- tage realized by successful hospitality operators is their ability to under- stand their targeted customers’ expectations and exceed those expectations time and time again. Following are examples of varying degrees of guest or customer satisfaction. Taste of Success Pete Stevens relates an incident of unprompted employee action. I was an attendee at a three-day conference, held at the Marriott Copley Place in Boston. I arrived in Boston in late morning, borrowed a friend’s car to handle some other business, and headed for the hotel shortly after dark (in rain). I couldn’t find the darn hotel. I’m circling the block—looking, looking, swearing, looking—and BANG! I hit a median curb; flattened the left front tire. I got out of the car, and ran across traffic in the rain toward a covered building entranceway where I encountered a red-, white-, and gold– uniformed doorman. I was at the Marriott. Brad came toward me and asked if he could help. I explained my car trouble, told him I was checking in, and asked where I might find a phone to call for assistance. Brad went with me to the car, held traffic while I made a U-turn, told me that he’d fix the tire, and directed me to the front desk. Later in my room, I received a call from Brad, letting me know that the tire was fixed and the car was in the garage. Three days later, when I was leaving for the airport, there was Brad again. He waved and said, “Hope you enjoyed the conference, Dr. Stevens. Have a safe trip [home].”13 Service does not need to be “spectacular” to be considered good. In some settings, good service is almost unnoticeable, because everything goes along according to the guest’s expectations. Generally, it is only when the service falls outside the limits of the guest’s expectations that it is deemed satisfactory or unsatisfactory. A Disappointing Experience In an article published in the Cornell Hotel and Restaurant Administration Quarterly, Bonnie J. Knutson, a faculty member at the School of Hotel, Restaurant, and Institutional Management at Michigan State University, stresses how meeting or exceeding guest expectations is  Welcome to the Hospitality Industry 21 paramount in generating guest satisfaction. Following is Knutson’s personal account of how not to serve a guest. Having spent the morning giving a seminar on this very topic of cus- tomer satisfaction, I was tired, hungry, and on a tight time schedule. So I stopped at a nearby deli-type restaurant that featured “New York Dogs.” When I saw both chili and hot dogs on the menu