2. 1
The World of Hospitality

3. Objectives
Explain the importance of the hospitality industry to the economy.
Describe the diversity of the hospitality industry.
Differentiate among the five segments and give an example of one business in each.
Explain why all segments of the hospitality industry should aim to satisfy the customer.
continued

4. Objectives Describe the ways in which chains differ from franchises.
Explain the purpose of professional organizations and career and technical student organizations.

5. The Hospitality Industry
Hospitality includes travel and tourism, the world’s largest industry
In the United States, the hospitality industry is the second-largest employer
Money spent by travelers flows through the economy, affecting many other businesses

6. Industry Diversity
Hospitality businesses provide diverse products and services, including
lodging
food
entertainment
transportation
The hospitality industry serves diverse customers
Hospitality employees are also diverse

7. Industry Complexity The hospitality industry has five segments: food
lodging
travel
tourism
recreation
©Sean Pavone Photo/Shutterstock.com

8. The Foodservice Industry
consists of businesses that prepare food and beverages for customers
includes businesses of many sizes, types, and locations
is the largest and most varied segment of the hospitality industry

9. The Lodging Industry
The lodging industry consists of businesses that provide overnight accommodations
Lodging includes a wide range of prices and levels of service

10. The Travel Industry
The travel industry consists of businesses that physically move travelers from one place to another, such as
car rentals
taxi and ferry services
train and bus services
airlines

11. The Tourism Industry
The tourism industry consists of businesses that organize and promote travel, such as
travel agencies
tour operators
cruise companies
meeting and convention planners
convention and visitors bureaus
travel and tourism offices
travel planners, who create travel packages

12. The Recreation Industry
Recreation is any activity done for rest, relaxation, and enjoyment
The recreation industry includes such operations as
entertainment
spectator and participatory sports
attractions

13. A Customer Focus All segments of the industry must meet customer needs
All hospitality workers contribute to a customer’s overall experience

14. Business Categories A single-unit business A multi-unit business
has only one establishment (location)
is also called an independent business
is not connected to any other business
A multi-unit business
has two or more establishments
may be part of a chain or franchise

15. Chains
A chain is a business that has more than one establishment under the same name and the same ownership
A chain’s brand, which distinguishes it from its competitors, may include
name
logo
tagline

16. Franchises
A franchise is the right to set up a business using the brand and products of another business
The franchisor owns the chain and brand, while the franchisee buys the right to use the brand
All franchises are part of a chain, but not all chains have franchises

17. Professional Associations
A professional association consists of a group of people organized to improve themselves, their profession, and their industry
Includes such major associations as
the National Restaurant Association (NRA)
the American Hotel & Lodging Association (AH&LA)
the U.S. Travel Association

18. Activities of Professional Associations
Professional development
Standards and ethics
Networking
Public relations
Government relations

19. Value of Involvement
Involvement in a professional organization can provide benefits such as
scholarships for students planning to enter the profession
help with job searches, professional development, and networking
opportunities to develop leadership skills and other abilities

20. Student Organizations
A career and technical student organization (CTSO) is for students interested in a career area, such as hospitality or business
A CTSO gives students the opportunity to develop
interpersonal skills
leadership skills
career skills
technical skills

21. Benefits of Belonging to a CTSO
Opportunities to meet with professionals in the industry
Availability of scholarships
A variety of civic, service, social, and fund-raising activities
Competitive events at the local, state, and national levels

22. Chapter 1 Review What is the world’s largest industry?
travel and tourism
In what three ways is the hospitality industry diverse?
It provides diverse products and services, serves diverse customers, and employs diverse workers.
continued

23. Chapter 1 Review Name the five segments of the hospitality industry.
food, lodging, travel, tourism, recreation
Which segment is the largest and most varied?
the food industry
continued

24. Chapter 1 Review What distinguishes a chain from its competitors?
its brand
Name four types of skills that can be developed by belonging to a CTSO.
interpersonal, leadership, career, and technical