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Develop and update hospitality industry knowledge


... Responsible development Economic benefits for a better quality of life Cultural respect What is Responsible tourism development ? – PowerPoint PPT presentation

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Title: Develop and update hospitality industry knowledge

Chapter 1
  • Develop and update hospitality industry knowledge

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
  • Update your hospitality industry knowledge.

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.

Types of research
  • Formal
  • Interviews
  • Questionnaires
  • Discussions
  • Informal
  • Newspaper articles
  • Brochures
  • Observation
  • Training sessions

Types of research
  • Qualitative research explores ideas, seeks
    feedback on performance and helps identify
  • Quantitative research measures and monitors
    events and performance in terms of quantity,
    numbers and percentages.

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).

Sources of information
  • Media
  • Reference Books
  • Libraries
  • Visiting attractions
  • Leaflets and brochures
  • Tourist offices and commissions

Sources of information
  • Internet
  • Personal experience
  • Colleagues and associated
  • Industry associations
  • Industry contacts, mentors and advisors
  • Familiarisation trips

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

The guest
  • A guest is the entity receiving hospitality
  • Individual person
  • Company/business
  • Region
  • Country

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

Commercial hospitality
  • Hospitality businesses that offer food, beverages
    and/or accommodation for a profit.

Non-commercial hospitality
  • Hospitality organisations that provide food,
    beverages and/or accommodation free of charge
    (not for profit).

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.

What is service?
  • Service is the action, activity or experience
    provided by staff for the guests pleasure,
    benefit or enjoyment of the hospitality
  • It is something we do for the guest. For example,
    serve food and beverage items, provide
    information, check a guest in or out.

Factors affecting a hospitality enterprise
  • Internal factors
  • Service standards
  • Working conditions
  • Pricing structure
  • Financial support
  • Products and services offered.

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.

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.

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.

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

Types of tourists
  • Inbound
  • 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).

Types of tourists
  • Interstate
  • 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.

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.

Relationship between tourism and hospitality
  • When people travel they need many hospitality
  • Accommodation
  • Food
  • Beverages
  • Entertainment
  • For many, this relationship is served by packaged

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).

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/infr
    astructure at the destination.

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.

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

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).

Relationship between hospitality and other
  • 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
  • Utility companies
  • Building companies
  • Local and state government
  • Supplies (linen, food, beverages)
  • Labour market
  • Retail outlets
  • Attractions/events/entertainment/recreation
  • Transport services

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.

Social and cultural significance of tourism and
  • 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

What is Responsible tourism development?
  • An attempt to balance the needs of local
    communities with those of the tourists.

Cultural tourism
  • Tourism activities that enable tourists to engage
    more with other cultures and lifestyles.

Environmental issues for tourism and hospitality
  • Protection of the environment
  • Sustainable development
  • Ecotourism
  • Waste management
  • Energy efficient operations

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.

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.

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

What are the benefits of an energy efficient
  • Helps reduce the potentially negative effects (of
    resource consumption) on the environment.
  • Helps reduce operating costs.

Hospitality departments
  • Food and beverage
  • Rooms/Accommodation Services
  • Maintenance/engineering
  • Financial control
  • General administration
  • Management
  • Human resources
  • Clubs and gaming
  • Sales and marketing

Roles in food and beverage
  • Floor staff
  • Waiting staff
  • Bar attendants
  • Glassies
  • Supervisors
  • Cashiers
  • Host/ess
  • Kitchen
  • Chefs
  • Kitchen hands

Roles in accommodation services
  • Front office
  • Cashier
  • Receptionist
  • Supervisor
  • Back office
  • Telephonist
  • Reservationist
  • Supervisor

Roles in accommodation services
  • Concierge
  • Porter
  • Valet
  • Housekeeping
  • Room attendant
  • Butler
  • Public area cleaner
  • Supervisor

Other roles
  • Maintenance/engineering
  • Financial controller
  • Human resources manager
  • Sales and marketing manager
  • General administration
  • Management
  • General manager
  • Assistant manager
  • Department heads
  • Duty managers

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

Work performance expectations
  • Irrespective of the sector or venue in which we
    work, it is expected that we provide service
  • efficiently
  • knowledgably
  • skilfully
  • courteously.

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.

Industrial relations
  • The management of relationships between employers
    and employees.
  • Regulated by both legislation and workplace

Industry employer groups
  • Organisations that assist employers (businesses)
  • Industrial relations advice/representation
  • Legal advice
  • Operational support
  • Training support

Trade union
  • An organisation that represents employees
  • Aims to protect and improve its members workplace
    rights and entitlements.

What is quality assurance?
  • The control of the variations in the provision of
    goods and services that ensures consistency.

What is a standard?
  • A minimum level at which output is to be provided
    or produced to assure a consistent quality. For
  • 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
  • how many tables/guests a waiter is responsible
  • 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.

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

Cost of not providing quality
  • Waste of time
  • Loss of money
  • Loss of customers
  • Lack of consistency
  • Customer complaints

Star rating system
  • Managed and awarded by AAA Tourism.
  • Provides for a consistent and independent
    assessment of standard and services offered.

  • Electronic commerce conducting business via the
  • 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).

  • A private or internal (company) computerised
    information network used to securely communicate
    and share information with a limited groups of
    external parties.

  • A private or internal (company) computerised
    information network used to securely share
    organisation information within the organisation.

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,

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

What is a duty of care?
  • The responsibility one person has for the safety
    and well-being of another (in the eyes of the

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.

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

What is an award?
  • A work code that sets minimum working conditions
    and pay rates in an industry or sector of an

Employee Collective Agreement (ECA)
  • A work conditions agreement that represents a
    group of employees.

Australian Workplace Agreement (AWA)
  • A work conditions agreement negotiated between an
    individual and his or her employer.

Fairness test
  • AWAs and ECAs replace any award that might
    otherwise apply in that workplace (with the
    exception of unexpired existing AWAs).
  • All AWAs and ECAs 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

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.

  • 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.

What are ethics?
  • A system of principles and values that govern the
    way we behave and act.
  • Unethical practices may have legal implications.

Some of the ethical issues affecting the
hospitality industry
  • Confidentiality
  • Money security
  • Overbooking
  • Product recommendations
  • Pricing
  • Gifts, services free of charge and
  • Codes of practice
  • Commission procedures
  • Tipping

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.

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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