2Introduction to tourism and hospitality industry Learning ObjectivesUnderstand the tourism and hospitality industryOverview of the different tourism sectorsClassification of lodgingsAnalyze different kinds of consumers and what satisfies their travel needs
3Why study Tourism and hospitality? Employs 214 million people worldwide (est 2004) or 8.1% of total employmentLeading economic contributor generating 10.4% of the world’s GNP (US$5,500B)Source :- World Travel & Tourism Council
4How about local tourism and hospitality industry? Estimated employment of 150,000 to 200,000 jobs12% of GDP US$98.4B (2004)S$9.6 B tourism receipts (2004), S$6.9B (2003), S$8.8B (2002)Source : Travel News Daily
5Tourism’s economic contribution in Singapore Integrated Resort complex (Hotels and casinos) expected to hire 10,000 direct staff plus indirect employment (5,000)
6Tourism’s economic contribution in Singapore Ready in 2008/2009 at Marina Bay and Sentosa with theme parks, shopping plazas, museum and convention hallsTotal incremental employment of 35,000 jobs (unemployment 75, )
7Tourism’s economic contribution in Singapore Total incremental GDP of S$1.3 BillionTourism contribution from 13.1% 1993to 6.1% 2002S$5B resort investment e.g. MGM-Mirage CapitaLand, Harrah’s Entertainment-Keppel Land etc.
8Tourism’s economic contribution in Singapore Expected to generate USD26.9billion of economic activity (Total Demand) in 200510.6% of GDP and 182,985jobs (8.3% of total employment) in 2005Expected to grow 7.0% in 2005 and by 6.2% per annum, in real terms, between 2006 and 2015.
9Singapore tourism’s vision On 11 January 2005, STB unveiled Tourism 2015, its vision for Singapore’s tourism industry over the next 10 years. The STB aims to double visitor arrivals to 17 million, triple tourism receipts to S$30 billion and add 100,000 new jobs to the tourism industry by 2015.Source :- Travel News Daily
10Definition of TourismIndividuals or groups that are travelling away from home requiring all providers of activities, services, and industries that delivers a travel experiencee.g. You and your family travelling to Australia
11Definition of Hospitality Definitely not working in “Hospitals”
12“Real” definition of hospitality Lodging and food services (food and beverage) industries that cover theme and amusement parks, entertainment outlets, cruise companiesE.g Any F&B providers locally or overseas
13Hospitality industryLodging :- continually changes to accommodate its guests, necessity for classifying hotels, cater to different groups of individuals.May include hotels, motels, convention hotels, farm stay, bed and breakfast and apartments.
14Types of accommodation Luxury hotels and resorts e.g. 4 Seasons, Banyan Tree, FullertonFull serviced properties e.g. AscottLimited-Serviced properties e.g. no daily housekeepingAll-suites’ hotels (serviced apartments)Centrepoint
15Foodservice operations Foodservice :- offering menu in different forms from small establishments (push cart) to large chain restaurant organisations.Each foodservice operation responds to the needs and expectations of its market through its concept and menu.
16Types of lodging ownership Independent Ownership e.g. Bel Air HotelChain ownership e.g. Hilton InternationalManagement Contract e.g. Raffles HotelCompany-owned and operated e.g. Furama5) Franchise-licensed e.g. Holiday Inns
17Types of lodging ownership Independent Ownership : No affiliations, usually hotels that are so famous e.g. Bel Air Hotel in Los AngelesSo small that they don’t have the resources or see the need for brand affiliations
18Types of lodging ownership 2) Chain Ownership :- Wholly owned by a parent chain corporation e.g. Hyatt, Hilton, Marriott or Fairmont, most people believe that if a hotel has a brand name, it’s owned by the parent chain, not very true as it could be “owned” in many forms.
19Types of lodging ownership Management Contract :- Provides executives to run the hotel, may use the chain’s brand name and reservations systemOdd situations where the management of one chain (say, Marriott) oversees a property owned or franchised by another chain (e.g. Hilton)
20Types of lodging ownership Company owned and operatedown and run by its own executives in areas of marketing, reservations, day-day operations of the various hotels
21Types of lodging ownership 5) Franchised licensedOutside person or company (a franchisee) owns the property, pays a royalty, a percentage of room sales, must adhere to at least the minimum lodging standards that the chain sets
22Brands and brand families Represent a distinct value level e.g. Four Seasons rep upscale and pricey, Motel 6 has a chain of budget Hotels, basic and inexpensive
23Classification of accommodation Canada Select uses the following criteria toclassify hotels and motels in Canada. cleanliness,state of repair and the amenities that eachproperty offers. Each star level incorporates therequirements of the previous level and adds in newcriteria.
24Ratings of hotel accommodation One StarTwo StarThree StarFour StarFive Star
25Ratings of hotel accommodation 5 StarExceptional quality with the highest standard of furnishings, flawless service, meticulous guest care and exemplary provision and presentation of all aspects of the business.4 StarExcellent quality, with the highest standard of furnishings, service and guest care.3 StarVery good quality, with a commendable standard of furnishings, service and guest care.2 StarGood quality, with a comfortable standard of furnishings, service and guest care.1 StarFair to Good quality, with an acceptable standard of furnishings and adequate service and guest care.
26Ratings of hotel accommodation Hotel Rate Type: San Francisco Hotels. Hotel Ratings: AAA Rating: 3 Diamonds; MOBIL Rating: 2 Star ...
27How does it rate?Certain countries rate by governments on lodging, e.g. Australia, France and MexicoMost nations rate by private organisations, e.g. AAA, Michelin, Mobil Star Service
28Categories of local hotels Five star Hotels : Grand Hyatt, Meritus Mandarin, Grand Copthorne Waterfront, Goodwood Park, JW Mariott etc.Four Star Hotels :- Orchard Parade,Plaza Parkroyal, Traders Hotel, CarltonHotel etc.
29Categories of local hotels Three Star Hotels :- Albert Court, New Park, Grand Central, Allson, Hotel Asia, Oxford, Garden, Hotel Miramar etc.4) Budget Hotels :- Hotel 81, Fragrance, Metropolitan YMCA, Cactus, Dickson Court, Metropole, Royal Peacock etc.
30Sectors of the industry Transportation :- moving people and cargo through airlines, ferry, cruise ships etcTour operators :- run packaged travel, independent tour packages with air/ground and land components
31Sectors of the travel industry Air industry :- airlines of all sizes and sorts and all airlines’ supporting services companies, for example, security, catering services.International airlines include SQ, QF, CX, EK and MH etc.
32Sectors of the travel industry Travel agencies :- businesses that help the public with their travel plans and needs, for example, Chan Brothers, Sakura Travel, Sunny Holidays, Reliance Travel etc.
33Sectors of the industry Visitors’ Attractions :- some places have become icons of the destination, for example, Eiffel Tower (Paris), Disneyland (Anaheim, California), Great Wall of China (Beijiang, China), Harvard University (Boston, MA)
34Sectors of the industry Theme Parks :- “super” attraction, businesses feature themed areas(e.g. Disneyland’s Tomorrowland and Frontierland sections), Orlando has the highest concentration of theme parks anywhere, including four within Walt Disney World, two at Universal Orlando, and one at SeaWorld
35Sectors of the industry Car rentals :- different types of cars for rental at various rental points with facilities, for example, airports, hotels or suburban locations, Brand names in the industry include Avis, Budget, Hertz and National etc.
36Distribution channels 3 key players in distributing tourism andhospitality products include :-ConsumersSuppliersIntermediaries
37Why people travel? Self-motivating factors :- understand other cultures, beliefs, values, see the world,
38Three types of travelers DependablesVenturersCentrics
39Three types of travellers Dependables :- Prefer predictableroutine lives and avoid unusual things or challenging situations2) Venturers :- bolder people, different and challenging things and love to travel to unusual, exotic places
40Three types of travellers 3) Centrics :- psychological middle ground between dependables and venturers, little adventure in their lives but not too much
41SummarySingapore’s tourism and hospitality industry is a major economic contributor to the economyTourism and hospitality sectors work closely together to ensure an increase in its tourism receiptsSingapore’s government is expected to introduce casino and Formula One when possible