1. Travel Management 2 Learning Unit 1: The Business of Tourism Session to complete module: 1-10 Current session: 8-9-10 Date: 08/03/2013

2. Hospitality Sector – 1) Introduction Hospitality sector – is the biggest operation component of the tourism industry. The word Hospitality derived from the word hospital – place were people are cared for and nurtured back to health. Hospitality – creating a home away from home atmosphere, main objective – surpass the expectations and perceptions of guests.

3. 1) Introduction In order to do this – there are tangible (physical components ) and intangible (physiological components) aspects that need to be meet. Tangible – beauty of the reception and rooms, size of the bathroom. Intangible - attitudes and commitment of staff, customer satisfaction.

4. 1) Introduction Hospitality and services are closely linked and inseparable – it involves daily contact between staff and customers. In order to deliver quality service – you need to follow the formula: Refer to Page 115 Quality= (L+F+C+A+R+S+H) ____________________ P

5. 2) Brief historical overview of SA hospitality sector Traced back to Jan Van Riebeeck – commissioned to establish a refreshment centre in the Cape – for those ships passing by to the East. First hotel – House of Accommodation opened on 18 May 1656. It was just a large sleeping hall with communal beds. Later other establishment opened: – The Fontain Hotel in Cape Town 1801 – The George Tavern 1810 – The Royal Hotel in 1820

6. 2) Brief historical overview of SA hospitality sector The discovery of gold and diamonds made more people move northwards – caused the development of many accommodation establishments.

7. 3) The Classification of Hotels 3.1) Commercial Hotels Located downtown areas or business districts These hotels usually cater for business tourists. First commercial hotel – Carlton and Johannesburg Sun This is because – Johannesburg is the SA`s financial hub. Vary from 3-5 star grading – facilities will differ in each hotel. Guest amenities – complimentary news paper, morning coffee, DSTV, airport transfers. Facilities – laundry mat, health clubs, saunas and tennis courts. Rates for these hotels are fairly high.

8. 3.2) Airport Hotels Introduction air transportation – more people are travelling long distance. Resulted in a demand for accommodation in close proximity to airports. People had to transfer from one flight to another. It is more convenient for airline staff to stay near to an airport. Target business travellers, airline passengers, overnight travel layovers or cancelled flights. Facilities – limousine or large taxi airport transfers, conference facilities.

9. 3.3) Suite Hotels Apartment type hotels – have a guest room, living room, kitchen Attract Leisure - enjoy a home away from home. Businessmen, lawyers or accountants – entertain or work. Common examples – Don Apartments, Cuillen Apartments.

10. 3.4) Casino Hotels Introduction gaming legislation – 1996, there has been the opening of 40 casino`s in SA. Casino hotels attract guest – by promoting gaming and headliner entertainments. Speciality restaurants and extravagant floor shoes. Gaming activities operate – 24 hours of the day, 356 day of the year. – this has a significant affect on its rooms, food and beverage. Casino hotels – 4000 rooms

11. 3.5) Bed and Breakfast Hotels Budget minded travellers. Consist of 20-30 guest rooms However due to growing popularity, larger chains such as Southern Sun have entered the market. Core product – accommodation and breakfast.

12. 3.6) Convention hotels SA – there are no real convention hotels Convention hotels – 1000-2000 rooms In Durban – ICC, this is a world class convention centre but does not offer accommodation. ICC – next to the Hilton – which fulfil this function.

13. 3.7) Guest Houses and Bed and Breakfast outlets This sector – enjoyed reasonable growth – taking some markets away from hotels. These establishment offer the following (Refer to Page 119).

14. 4) Different types of food service provisioning Read text box – Page 119-120. 1) Steak houses – mainly offer red meat. Eg Spur and Steers. 2) Burgers – largest sector in fast food business. Eg. Mac Donald's. 3) Pizza Restaurants – heavy discounts and special offers Eg, Debonairs, Scooters, Romans. 4) Chicken Outlets – account for 10% of sales volume. Eg, KFC, Nandos, Chicken Licken.

15. 4) Different types of food service provisioning 5) Fish and Chips/sandwiches – often overlooked. However there are very accessible and convenient. Privately owned. 6) Travel related catering – such as road side catering. There is a wide range of catering outlets which sell meals, snacks and refreshments to the travelling public. Most Sa fuel companies have such outlets. Eg, Quick shops.

16. 4) Different types of food service provisioning 7) Main stream restaurants – themed speciality restaurants – concentrates on one style of cuisine. Other restaurants – pubs, coffee bars and cafes.

17. 5) Gaming Main type is Gambling – Read text box – Page 122. Forms part of the wide hospitality industry. Gambling – does not attract international visitors but local population. Introduction of the gambling legislation – the industry ahs become very competitive.

18. 5) Gaming Economic impacts of gambling : – Negative effect on a personal savings. – Decline in disposal income does not equal a decline in gambling activities – pay rather spend there last R100 – with the hopes of doubling it. – Increased potential tourism growth – demand for accommodation, food and beverage and conferencing. – Creates jobs – Improves local infrastructure – roads, buildings, parking, facilities.

19. 5) Gaming – Gives rise to land speculation – causing property values to increase – displaces local communities. – High paying management positions – given to people outside the community.

20. Home Work Now that we have completed this learning unit you should be able to answer the following revision questions: 1. In your own words, explain the term “tourism”. 2. Describe the tourism business system. 3. Explain what motivates tourists to travel. 4. Differentiate between demand of tourism and supply of tourism. 5. Discuss how supply and demand can be linked together in the tourism business environment.