1. Develop and update hospitality industry knowledge
Chapter 1
Develop and update hospitality industry knowledge
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Road to Hospitality 3e

2. On successful completion of this chapter you will be able to:
Seek information on the hospitality industry
Source, access and obtain information on legal and ethical issues that impact on the hospitality industry
Update your hospitality industry knowledge.
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3. What is research?
Research is a set of formal and informal techniques used to locate information and to process that information so that we can use relevant data to build our knowledge.
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4. Types of research Formal Informal Interviews Questionnaires
Discussions
Informal
Newspaper articles
Brochures
Observation
Training sessions
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5. Types of research
Qualitative research explores ideas, seeks feedback on performance and helps identify preferences
Quantitative research measures and monitors events and performance in terms of quantity, numbers and percentages.
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6. Questioning techniques
Open-ended – questions that require more than a ‘yes’ or ‘no’ answer.
Closed – questions that make it easy to say ‘yes’ or ‘no’ (or make other non-buying decisions).
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7. Sources of information
Media
Reference Books
Libraries
Visiting attractions
Leaflets and brochures
Tourist offices and commissions
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8. Sources of information
Internet
Personal experience
Colleagues and associated
Industry associations
Industry contacts, mentors and advisors
Familiarisation trips
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9. The host
At the core of the hospitality industry is the host-guest relationship.
The host is the entity giving the hospitality
Individual person
Company/business
Region
Country
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10. The guest A guest is the entity receiving hospitality
Individual person
Company/business
Region
Country
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11. Hospitality industry sectors
A sector is one area or division of an industry. Each of the following can be said to be sectors of the hospitality industry:
Restaurants
Clubs
Resorts
Cruise ships
Fast food outlets
Hotels.
Each sector offers different products and services.
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12. Commercial hospitality
Hospitality businesses that offer food, beverages and/or accommodation for a profit.
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13. Non-commercial hospitality
Hospitality organisations that provide food, beverages and/or accommodation free of charge (not for profit).
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14. What are products?
Products are tangible items that guests can touch or consume such as food and beverage items, a guest room and the amenities in that room.
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15. What is service?
Service is the action, activity or experience provided by staff for the guests pleasure, benefit or enjoyment of the hospitality experience.
It is something we do for the guest. For example, serve food and beverage items, provide information, check a guest in or out.
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16. Factors affecting a hospitality enterprise
Internal factors
Service standards
Working conditions
Pricing structure
Financial support
Products and services offered.
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17. Factors affecting a hospitality enterprise
External factors
Trends
Competition
Market needs, expectations and demand
Seasonality
Location
Environmental issues
Industry regulations and legislation
Availability of skilled staff.
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18. What is ‘tourism’?
Those activities that take people away from their usual place of residence for pleasure or a holiday, other than for work.
Tourism occurs as a result of the different types of businesses that provide a range of products and services to visitors.
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19. Tourism sectors
Those industries or business enterprises that provide goods and services to tourists, visitors and travellers, such as:
Hospitality related enterprises
Travel operations
Visitor services.
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20. What is a ‘tourist’?
A tourist is a person who travels for pleasure and for reasons other than employment or business, usually more than 40 kilometres from home and usually for a period of more than 24 hours.
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21. Types of tourists Inbound Outbound Domestic
Visitors to Australia whose main place of residence is not Australia.
Outbound
Tourists whose main place of residence is in Australia, travelling outside Australia.
Domestic
Australian residents travelling within Australia (interstate and intrastate).
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22. Types of tourists Interstate Intrastate
Australian tourists travelling within Australia, to a state/territory other than where they usually reside.
Intrastate
Australian tourists travelling within the state/territory in which they usually reside.
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23. Purpose of travel
Refers to the visitors reason for travel. Understanding the purpose of travel helps us better meet individual guests expectations and needs. Purpose of travel includes:
Leisure/pleasure/holiday
Business
Conference
Visiting relatives.
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24. Relationship between tourism and hospitality
When people travel they need many hospitality services:
Accommodation
Food
Beverages
Entertainment
For many, this relationship is served by packaged holidays.

25. Factors affecting accommodation choice
Cost (how much can guest afford/how much do they want to spend)
Standard or quality (how important is the standard/what standard or quality of accommodation is available at the destination)
Availability (what accommodation is available for the required dates)
Length of stay (how long does guest want to stay/relative to cost).
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26. Factors affecting accommodation choice
Destination/location (what is available at the destination/what choices are there)
Purpose of travel
Star rating
Types of services available (does this suit the guests needs – business facilities, family orientation, choice of dining experiences, accessibility to other facilities/attractions/infrastructure at the destination.
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27. What is a ‘package holiday’?
An inclusive arrangement usually for transport, accommodation, transfers, some meals, occasionally tours and various other aspects of a trip for an all-inclusive price.
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28. Economic impact of tourism
Tourism contributes significantly to the economy of Australia, in terms of:
Job opportunities/employment
Consumption of goods and services
Export and import earnings
Infrastructure development
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29. Recent impacts on tourism
Almost all impacts on tourism – whether positive or negative – will have an impact on many hospitality enterprises. The most significant recent impacts have included:
Movement in the value of the Australian dollar
Continued threats of and actual acts of terrorism
Ongoing civil and political unrest in may parts of the world
SARS
Bird flu
Natural disasters (including earthquakes, tsunami, bush fires, drought).
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30. Relationship between hospitality and other industries
The hospitality industry is reliant on and has a direct link with other industries that supply part of the necessary infrastructure (for sustainable tourism) and goods and services such as:
Utility companies
Building companies
Local and state government
Supplies (linen, food, beverages)
Labour market
Retail outlets
Attractions/events/entertainment/recreation facilities
Transport services
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31. Hospitality and the multiplier effect
The link between the hospitality industry and other industries generates a flow of spending through the community. This is referred to as the ‘multiplier effect’.
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32. Social and cultural significance of tourism and hospitality
Tourism activities, and therefore hospitality, can result in considerable social and cultural costs to a community. It is therefore important that tourism-related enterprises operate in a manner that promotes:
Responsible development
Economic benefits for a better quality of life
Cultural respect
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33. What is ‘Responsible tourism development’?
An attempt to balance the needs of local communities with those of the tourists.
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34. Cultural tourism
Tourism activities that enable tourists to engage more with other cultures and lifestyles.
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35. Environmental issues for tourism and hospitality
Protection of the environment
Sustainable development
Ecotourism
Waste management
Energy efficient operations
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36. What is ‘Sustainable Development’?
Balancing limited tourism use of sensitive natural environments with conservation management principles so that future generations may also enjoy these areas.
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37. What is ‘ecotourism’?
An attempt to provide a link between the economic development of tourism and the conservation of the natural areas. Thus, it is concerned with maintaining the natural and cultural integrity of certain tourism areas.
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38. What is ‘waste management’?
The management of the disposal of the waste generated through tourism-based activities.
It is important to manage our waste to help sustain the environment, reduce costs, reduce pollution and reduce consumption of finite resources.
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39. What are the benefits of an energy efficient operation?
Helps reduce the potentially negative effects (of resource consumption) on the environment.
Helps reduce operating costs.
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40. Hospitality departments
Food and beverage
Rooms/Accommodation Services
Maintenance/engineering
Financial control
General administration
Management
Human resources
Clubs and gaming
Sales and marketing
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41. Roles in food and beverage
Floor staff
Waiting staff
Bar attendants
Glassies
Supervisors
Cashiers
Host/ess
Kitchen
Chefs
Kitchen hands
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42. Roles in accommodation services
Front office
Cashier
Receptionist
Supervisor
Back office
Telephonist
Reservationist
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43. Roles in accommodation services
Concierge
Porter
Valet
Housekeeping
Room attendant
Butler
Public area cleaner
Supervisor
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44. Other roles Maintenance/engineering Financial controller
Human resources manager
Sales and marketing manager
General administration
Management
General manager
Assistant manager
Department heads
Duty managers
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45. Industry expectations
Excellent service ethos
Strong work ethic
Excellent communication skills
Excellent interpersonal skills
High standard of grooming
Good product knowledge
Excellent work-related skills
Honesty
Punctuality
Reliability
Initiative
Positive attitude
Dedication
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46. Work performance expectations
Irrespective of the sector or venue in which we work, it is expected that we provide service:
efficiently
knowledgably
skilfully
courteously.
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47. Working conditions in the hospitality industry
Depending on the sector and enterprise may operate 24 hours a day, every day of the year. Therefore, expect:
Shift work – mornings, afternoon and night shifts
Changing rosters
Long hours
Physically demanding work
High customer contact
Working conditions are generally determined by awards and enterprise or individual agreements.
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48. Industrial relations
The management of relationships between employers and employees.
Regulated by both legislation and workplace policy.
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49. Industry employer groups
Organisations that assist employers (businesses) with:
Industrial relations advice/representation
Legal advice
Operational support
Training support
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50. Trade union An organisation that represents employees (workers).
Aims to protect and improve its members workplace rights and entitlements.
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51. What is ‘quality assurance’?
The control of the variations in the provision of goods and services that ensures consistency.
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52. What is a ‘standard’?
A minimum level at which output is to be provided or produced to assure a consistent quality. For example:
how quickly a meal must be prepared and how it must be presented on the plate
how a prepared cocktail must be presented
how a table must be set for a function
how a guest room must look and be cleaned
how many rooms must be cleaned during a specified shift
how many tables/guests a waiter is responsible for
how staff must present themselves for work (correct uniform, name badge, etc)
how a telephone must be answered
how a guest is greeted
how a reservation is recorded.
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53. What is a ‘standard’
By setting standards we are able to measure or judge the quality of the output.
By standardising what we do and how we do, all staff understand explicitly what is expected of them.
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54. Cost of not providing quality
Waste of time
Loss of money
Loss of customers
Lack of consistency
Customer complaints
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55. Star rating system Managed and awarded by AAA Tourism.
Provides for a consistent and independent assessment of standard and services offered.
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56. E-commerce Electronic commerce – conducting business via the Internet.
An ever-increasing means by which consumers undertake business transactions (raising the stakes for more traditional means by which we conduct business/market our companies).
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57. Extranet
A private or internal (company) computerised information network used to securely communicate and share information with a limited groups of external parties.
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58. Intranet
A private or internal (company) computerised information network used to securely share organisation information within the organisation.
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59. Computerised reservation systems (CRS)
Also referred to as central reservation systems.
A CRS is a fully automated means by which we can create and amend bookings for almost all tourism-related products – transport, beds, tours.
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60. Legal matters
Multiple federal and state-based legislation and regulations impact hospitality enterprises.
which laws and regulations apply to which businesses depends on the nature of the business.
The laws bind both employers (businesses) and employees.
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61. What is a ‘duty of care’?
The responsibility one person has for the safety and well-being of another (in the eyes of the law).
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62. What is ‘vicarious liability’?
Where an employer has a duty of care for the public, their liability is extended to the actions of their employees. That is, the employer is responsible for ensuring that their employees work within the law.
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63. What legislation impacts the hospitality industry?
Building laws and regulations
Liquor licensing controls
Gaming regulations
Occupational health and safety
Public health legislation
Industrial relations law
Consumer law and trade practices
Privacy legislation
Innkeepers legislation
Child sex tourism
Equal opportunity and anti-discrimination
Accident compensation
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64. What is an ‘award’?
A work code that sets minimum working conditions and pay rates in an industry or sector of an industry.
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65. Employee Collective Agreement (ECA)
A work conditions agreement that represents a group of employees.
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66. Australian Workplace Agreement (AWA)
A work conditions agreement negotiated between an individual and his or her employer.
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67. Fairness test
AWA’s and ECA’s replace any award that might otherwise apply in that workplace (with the exception of unexpired existing AWA’s).
All AWA’s and ECA’s must be certified by the Workplace Authority and must demonstrate that fair compensation has been provided for modifying or removing any or all protected award conditions.
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68. What is a ‘consumer’?
Someone who uses (consumes) a good or service for non-commercial purposes (personal use).
Our guests and customers are consumers and their rights as such are protected by consumer protection legislation.
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69. Discrimination
To discriminate is to treat one person differently or less favourably than another in the same situation based on a difference between the parties such as race, sexual preference, gender, age, marital status, political convictions or religious beliefs.
Multiple pieces of legislation exist to protect our right to not be discriminated against.
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70. What are ‘ethics’?
A system of principles and values that govern the way we behave and act.
Unethical practices may have legal implications.
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71. Some of the ethical issues affecting the hospitality industry
Confidentiality
Money security
Overbooking
Product recommendations
Pricing
Gifts, services free of charge and familiarisations
Codes of practice
Commission procedures
Tipping
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72. Updating our industry knowledge
It will soon become apparent that what we learn and know today may change tomorrow. This is particularly true of legislation and the way in which business is transacted.
Importantly then, we need to remain in touch with changes to remain well informed and relevant.
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73. Monitoring the industry
We need to identify and use a range opportunities to remain informed about:
Industry trends (food and accommodation preferences, changes to consumer spending habits, destination popularity, etc)
Emerging markets
Government initiatives
Labour issues
Industry expansion and contraction
Economic issues
Technological advances
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