Hospitality Industry Hospitality is the cordial and generous reception and entertainment of guests or strangers, either socially or commercially. The Hospitality Industry is comprised of those businesses which practice the act of being hospitable; those businesses which are characterized by generosity and friendliness to guests.

I. Overview of Hospitality Industry A. Characteristics of Hospitality Industry 1.Inseparability 2.Perishability 3.Labor-intensive 4.Repetitive 5.Intangibility

B. Components of Hospitality Industry 1. Lodging Operations -such as hotels, resorts, motels etc. 2. Transportation Services -such as taxi, train, cruise ships, etc. 3. Food and Beverage Operations -such as restaurants, bars, etc. 4. Retail Stores -such as souvenir shops, etc. 5. Activities -such as recreations, festivals, etc.

C. Classification of Hotels 1.According to Size: a. Small Scale (under 150 rooms) b. Medium Scale (150 to 299 rooms) c. Large Scale (300 and above)

2. According to Target Market: a.Commercial Hotels b.Airport Hotels c.Suite Hotels d.Residential Hotels e.Resort Hotels f.Bed and Breakfast Hotels g.Time-Share and Condominium h.Casino Hotels i.Conference Centers j.Convention Hotels k.Alternative Lodging Properties

3. According to Levels of Service a. World-Class Service b. Medium-Range Service c. Economy / Limited Service

4. According to Type of Ownership and Affiliation a.Independent b.Chain Hotels - Management Contract - Franchise

5. Reasons for Traveling a. Business Travel b. Pleasure Travel c. Group Travel d. Buying Influences

6. According to Quality Ranking a.Deluxe b.First Class c.Standard d.Economy

7. According to Location a.Center City b.Suburban c.Resort d.Airport e.Highway

D. Hotel Organization Mission Statement Defines the unique purpose that sets one hotel or hotel company apart from others. It expresses the underlying philosophy that gives meaning and direction to hotel policies. A hotel’s mission statement should address the interests of three diverse groups: guests, management, and employees. Objectives Are those ends an organization must achieve to effectively carry out its mission. An objective is more specific than a mission; it calls for levels of achievement which can be observed and measured.

Goals Define the purpose of a department or division; they direct the actions of managers and employees and the functions of the department or division towards fulfilling the hotel’s mission. Strategies Are the methods a department or division plans to use to achieve its goals. Organizational Chart A schematic representation of the relationships between positions within the organization. It shows where each position fits in the overall organization as well as where divisions of responsibility and lines of authority lie. Solid lines on the chart indicate direct- line accountability. Dotted lines indicate relationships that involve a high degree of cooperation and communication, but not direct reporting relationship.

E. Classification of Functional Areas: Revenue vs. Support Centers Revenue Centers - those that sells goods or services to guests, thereby generating revenue for the hotel (front office, food and beverage outlets, room service and retail stores). Support Centers - these do not generate direct revenue, but provide important backing for the hotel’s revenue centers (housekeeping, accounting, engineering and maintenance, and human resources division).

Front-of-the-house vs. Back-of-the-house Front-of-the-house - areas that involves guest and employee interaction (front office, restaurants, and lounges). Back-of-the-house - areas where interaction between guests and employees is less common (housekeeping, engineering and maintenance, accounting, and human resources).

F. Hotel Divisions: 1.Food and Beverage Division 2.Sales and Marketing Division 3.Accounting Division 4.Engineering and Maintenance 5.Security Division 6.Human Resource Division 7.Rooms Division -Housekeeping -Front Office 8.Other Divisions: -Retail Outlets - Recreation - Casino