Intangibility in hospitality

Business

6 Unit 1 The Hospitality & Tourism

8 Unit 1 The Hospitality & Tourism Business

The World of Hospitality & Tourism

Business

6

Unit 1 The Hospitality & Tourism

3 Unit 1 The Hospitality & Tourism Business

AS YOU READ ,..

YOU WILL LEARN

· To describe the hospitality and tourism industries.

· To identify the segments of the hospitality and tourism industries.

· To define service as a product.

· To explain the importance of service to the hospitality and tourism industries.

WHY IT'S IMPORTANT By identifying and understanding the nature and variety of these industries, businesses and marketers function more effectively.

KEY TERMS

· hospitality industry

· bed-and-breakfasts (B&Bs)

· tourism industry

· service

· variables

· perishability

· intangibility

· changeability

PREDICT

What might the hospitality industry have in common with the tourism industry?

hospitality industry a group of businesses composed of establishments related to lodging and food-service management

The Importance of Hospitality & Tourism

H

ospitality and tourism are two of the fastest-growing and most exciting industries in the world today. They encompass more than 15 related businesses, including lodging, food service, transportation vendors, and tour operators. These industries employ more than 8 million people who earn more than $165 billion in wages and salaries. Annually, hospitality and tourism generate in excess of $525 billion in sales. In the United States, the tourism industry is the third-largest retail industry behind automotive and food stores, and it is our nation's largest service-export industry. One out of every seven Americans is employed either directly or indirectly because of visitors traveling to and within the United States. Opportunities are endless for well-prepared and motivated individuals who want a challenging, fast-paced future in hospitality and tourism.

Industry Segments

F

ew industries in the world are as complex, diverse, and interrelated as hospitality and tourism with many segments—lodging, food service, travel, tourism, and sports and entertainment events. (See Figure 1.1.)

Hospitality Industry

Traditionally, the hospitality industry is a group of businesses composed of establishments related to lodging and food-service management. These businesses include hotels, motels, inns, and bed-and-breakfasts (B&Bs), or small unique inns that offer a full breakfast with a night's stay, as well as casinos, restaurants, catering companies, hospitals, schools, and many other facilities.

Tourism industry

The tourism industry is a group of businesses that encompass travel/transportation vendors for air, rail, auto, cruise, and motor-coach travel, and promote travel and vacations. Destination marketing firms, such as tourism offices, convention and visitors' bureaus, and chambers of commerce, distribute information to travelers.

Other Providers

In addition, providers of recreational facilities and meeting-planning services are included under the umbrella of the important and rapidly growing industries of hospitality and tourism. The sports and entertainment industries rely on consumers who spend their money and free time watching or participating in their favorite pastimes and activities.

Product as Service

A

product is not only a tangible item, or good, it can also be a service, or an intangible thing that is a task performed for customers by a business. It is simple to think that hotels sell rooms) and restaurants provide food. However, no guest will return to a facility-hotel or restaurant—unless the service provided with the room or the food is quality service. For example, hotel guests will not be satisfied if the sleeping room is pretty, but the front-desk clerk is rude. Similarly, no customer will enjoy a dining experience if he or she has to wait more than an hour to receive his or her food after placing an order— even if the food is excellent.

The Service Factor

Products can be goods or services. In the hospitality and tourism industries, most products are services. This service factor in all segments— lodging, food service, travel, tourism, and sports and entertainment events—is what differentiates these industries from most other industries. Therefore, it is necessary to take both a goods and a service approach to hospitality and tourism products.