CRT LEARNING MODULE

Course Code

Course Title Fundamentals in Lodging Operation

Units 3

Module Title Overview of hospitality industry

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 College for Research & Technology of Cabanatuan

HOW TO USE THIS DIGITIZED LEARNING MODULE?

Welcome to the module in Introduction to Fundamentals in

Food Service. This module contains training materials and
activities for you to complete this module.

The Unit of Competency “Founders and History of the

Hospitality Industry” covers the knowledge, skills and
attitudes required as part of the competencies to complete the
subject in Fundamentals in food service and operations.

You are required to go through a series of learning activities

in order to complete each learning outcome of the module. Each
of the learning outcomes is provided with Modules. Follow these
activities on your own and answer the self-check at the end of
each learning outcome. You may remove a blank answer sheet at
the end of each module (or get the answer sheets from the online
facilitator) to write the answers for each self-check. If you have
questions, don’t hesitate to ask your facilitator for assistance.

This module was prepared to help you achieve the required

competency in Fundamentals in Lodging Operations. This will be
the source of Information for you to acquire knowledge and skill
in this particular trade independently and at your own pace, with
minimum supervision of help from your instructor.

 Talk to your online facilitator and agree on how you will both
organize the Training of this unit. Read each through the
module carefully. It is divided into sections, which cover all
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 the skills and knowledge you need to successfully complete
this module.
 Work through all the information and complete the activities
in each section. Read Modules and complete self-check.
Suggested references are included to supplement the
materials provided in this module.
 Most probably your facilitator will be your supervisor or
manager. Your online facilitator will support and correct you.
 Your online facilitator will tell you about the important things
you need consider when you are completing activities and it
is important that you listen and take notes.
 You will be given plenty of opportunity to ask questions and
practice on the job. Make sure you practice new skills during
regular work shifts. This way you will improve both your
speed and memory and also your confidence.
 Talk to more experienced workmates and ask for their
guidance.
 Kindly the self-check questions at the LMS (EDMODO) to test
your own progress.
 When you are ready, ask your online facilitator to watch you
online via Zoom or Google Meet to perform the activities
outlined in this module.
 Ask your online facilitator work through the activities: ask for
written feedback on your progress. Your online facilitator
keeps feedback/pre-assessment reports for this reason.
When you have successfully completed each element, ask
the facilitator to mark on the reports that you are ready for
assessment.
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 When you have completed this module, and feel confident
that you have sufficient practice, your online facilitator will
arrange an appointment with registered assessor’s to assess
you. The results of your assessment will be recorded in your
competency Achievement Record.

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 FUNDAMENTALS IN LODGING OPERATIONS

Contents of this Learning Module

No. Module Title Topic Code

1 Overview of Founders Module 2.1

the and History
Hospitality of the
Industry Hospitality
Industry

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 MODULE CONTENT

MODULE TITLE : FOUNDERS AND HISTORY

OF HOSPITALITY INDUSTRY

MODULE DESCRIPTOR:
This course describes the skills; knowledge and performance outcomes required to
explore and analyze the management and practices of lodging operations and related
sales activities in the major operating and support departments. It will also expose the
students on the unique aspect of managing a service - based lodging establishment
delivered by diverse employees and understanding of the business and financial
operations of the lodging firm. The course introduces the housekeeping department of
a hotel and lodging organization; its organizational structure; roles and responsibilities;
functions of the department; equipment and tools for housekeeping operations;
methods and procedures of cleaning operations including linen, uniform and laundry
service; general maintenance and decoration of a hotel; safety and sanitation in
housekeeping operations; management of operations and recording; precautionary
procedures; guest safety and hotel assets. Laboratory includes actual exposure in the
housekeeping operations.

Number of Hours:
3 hours

LEARNING OUTCOMES:
At the end of this module you MUST be able to:
1. Acquaint the founders of the hospitality industry;

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 MODULE 2.1

FOUNDERS AND HISTORY OF HOSPITALITY INDUSTRY

The ancient history of the hospitality industry began in 15,000

BCE with caves in France which were developed to accommodate
members of other tribes. In classical antiquity we learn about
Greek and Roman spas popular for those seeking rest and
relaxation. In the early
700s the first two hotels
in history were registered
in Japan which were
called Ryokans. These
Ryokans were resting
spots along the Silk Road.
By the 1600s more than
600 inns were registered
in England and in the early 1800s the first modern hotel was built
in England.

The 1st Revolution: Luxury and Service (1961 – 1980)

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This is what many refer to as the Golden Age of hospitality where
organizational culture and value creation were driven by luxury
and service. This paradigm was catalyzed by wealth increases
amongst the richest families in America post World War II. From
1963-1983 the wealth of the top 10% rose from $231k to $503k

(in 2013 dollars). This meant more money to spend on luxury

goods (and travel). It’s no accident that ITT (Sheraton)
purchased the St. Regis New York to bulk up its luxury division in
1960. Enter Isadore Sharp, founder of Four Seasons Hotels in
1961 with the vision to found a company on his Golden Rule:
“Treat guests the way you wish to be treated.” While Four
Seasons didn’t start as a luxury product, Sharpe quickly pivoted
upscale to chase the opportunity (and because, well luxury is just
more fun, isn’t it?). Then, in 1983, Ritz Carlton was founded and
carved out its own niche in the segment. The leaders of this era
were experts in customer service (and operations); consequently,
people like Sharpe were handsomely rewarded with vast wealth.

The 2nd Revolution: Market Segmentation (1981 – 2000)

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The chart above shows the incredible growth of airline passenger
travel from 1950-2014. As more
and more travelers traversed the
U.S. (and globe) incredible
entrepreneurs like Bill Kimpton
(Kimpton Hotels), Chip Conley
(Joie de Vivre) and Ian Shrager
(Morgans Hotels) saw an
opportunity to segment the
market and target very specific customers with a unique and
differentiated offering – the design-led boutique hotel was born.

It’s now 1991; enter Barry Sternlicht and Starwood Capital

Partners. He starts off like the others buying one-off properties
but then in 1997 executes a game changing move where he
magically outbids Hilton for ITT Corp
(Sheraton) at a whopping $14.3B.

It wasn’t exactly magic. Sternlicht leveraged

a tax loophole called “paired-shares” where
two stocks can trade together. Essentially,
he separated hotel operations (Starwood
Lodging Corp) from the Real Estate
(Starwood Lodging Trust) so that he could
avoid corporate taxation on income from the
real estate (REIT) by agreeing to pass 95% of rental income back
to shareholders. Less taxes meant more projected income, more

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projected income meant higher valuation and higher valuation
meant – well – sorry Hilton, higher purchase
price.

That was his first stroke of genius and what

actually lead to the next revolution (to be
discussed shortly). The next stroke of genius
was taking market segmentation insights from
the likes of Ian Shrager and placing them on
steroids with his newly found real estate
empire – the first W Hotel was born (December 1998).

“W is a very polarizing brand, it’s not meant for everyone and

we’ve tapped into a market segment that really aligns with our
brand in a way that they can’t with most other hotels,” Anthony
Ingham (Global Brand Leader, W Hotels) once told me. There are
now more than 13,000 W Hotel
rooms globally and almost 8,000 in
the development pipeline.

The 3rd Revolution: Digital

Distribution (1995 – Present)
Expedia was founded from within
Microsoft in 1996. Back then the
company charged a nominal 5% fee to help hotels fill rooms.
Today those fees can be up to 25% for independent hoteliers.
This massive shift has largely resulted from consolidation. Today,
Expedia and Priceline have approximately 76% market share. By
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2020 experts predict that market share will be up to 94% -wake
up, FTC! I digress. What Expedia
and Priceline realized is that you
don’t need to own hotels or even
brands to sell hotel rooms. Air Bed
and Breakfast took this one step
further and commercialized the less
spoken of couch surfing movement.
Having said that I group Air Bed and Breakfast with the OTAs
since all three are digital distribution channels that market lodging
based on state of the art e-commerce best practices. The only
difference is that Air Bed and Breakfast inventory is owned by
homeowners rather than professional investors and high net
worth.

HISTORY OF THE HOSPITALITY

INDUSTRY

Hospitality is nearly as old as

humanity. From the earliest caves to
inns, staging posts, motels, and
resorts—today, the hospitality
industry is thriving, with something like 187,000 hotels around
the world. Below is a timeline of some important milestones in
the development of the hospitality industry.

15,000 BCE—The Lascaux caves in France are the first shelter in

history that provably accommodated people of a different tribe.
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 Classical antiquity—in ancient
Greece and Rome, spas and
bathhouses often provided sleeping
facilities and were popular
attractions for those seeking rest
and relaxation. A bordello in
Classical Pompeii is considered to be
the first hospitality establishment that charged for lodging.

Middle Ages—In Japan, the first two hotels in history (guest

houses called ryokans) were built in the early 700s. In the Middle
East, caravanserais were a resting place for caravans along the
Silk Road, and refuges served
pilgrims and crusaders on their way
to the Holy Land. In China and
Mongolia, staging posts provided
shelter for couriers and allowed
horses to be changed more easily.
In Europe, cloisters and abbeys
provided free accommodation to travelers. Gradually, inns and
guesthouses began to open on popular trade routes to provide
lodging for traveling merchants and their horses.

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 1600s—more than 600 inns were
registered in England; the English
and French governments began to
introduce laws regulating them.
Thermal spas with lodging were
developed at Karlovy Vary in the
Czech Republic. The first
guidebooks for travelers were published in France.

Early 1700s— Masonic Lodges began to appear in North

America. In Paris, the Place Vendôme offered the first example of
a multiple-use architectural complex, including boutiques, offices,
apartments, and hotels.

1760s—The Industrial Revolution spurred

the construction of hotels across Europe
and the United States.

Early 1800s—the first modern hotel built

in England, with a full complement of
facilities, was the Royal Hotel in Plymouth.
Holiday resorts began to flourish along the
French and Italian rivieras. In Japan,
ryokan guest houses proliferated; in India,
dak bungalows run by the British government served travelers.

1829—The Tremont House in Boston was the first hotel to

provide inside toilets, locks on the doors, and bellboys.
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1832—Holt’s Hotel boasted the first steam-powered elevator in
New York City.

1862—Le Grand Hôtel Paris opened, the

largest and most luxurious in Europe,
decorated by top painters.

1870—The Palmer House Hotel in Chicago

was the first hotel built to be fire resistant
and the first to offer telephones in all its
rooms.

1873—The Palais Württemberg in Vienna was transformed into

the Hotel Imperial, a superb luxury residence for the notables of
the era.

1888—The Hotel Victoria in

Kansas City, Missouri, was the first
to offer an en suite bathroom with
every room.

1893—The first school for

hoteliers, Ecole hôtelière de
Lausanne, was founded in Lausanne, Switzerland. That same
year, the Waldorf Astoria in New York opened its doors. It was
the first hotel to offer room service; its maître d’ created the
Waldorf salad.
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Early 20th century—The early years of the twentieth century
saw the construction of new luxury hotels: The Ritz in Madrid,
the Savoy in London, the Beau Rivage Palace in Lausanne, the
Plaza in New York, the Métropole in Brussels, the Plaza-Athenée
in Paris, the Taj Mahal in Bombay, etc. During this period,
Switzerland built its first ski resorts.

1923—La Mamounia was built among gardens in Marrakech,

Morocco; many considered it to be the most beautiful hotel in the
world.

1927—Hot Shoppes was founded in Washington, D.C., a

hospitality company that later became Marriott Corp.

1950s—After the Great Depression and the war, the fifties saw a
second boom in the hotel industry, including the advent of Club
Med, the first casino hotels, the first hotels developed by airline
companies, and new resorts flourishing around the
Mediterranean. In the United States, Holiday Inn and Howard
Johnson’s motor lodges were founded; 35,000 motels were built
between 1939 and 1960.

Latter half of the 20th century—Thanks to various social and

economic factors, middle-class people had more time and money
to indulge in travel. Hotels began to diversify, catering to different
budgets and interests (spas, casinos, motels, hostels, resorts,
conference hotels) and offering a more varied range of services.
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1970—Hotels catering to business people began to proliferate,
especially in the Middle East, Europe, and North America.

1980s—The third boom in the hotel industry began in 1980.

International hotel chains (mostly American) expand in Europe,
the Middle East, and Asia.

1987—Kendall College launched its Bachelor’s in Hotel and

Restaurant Management program, which later evolves into a
Bachelor’s in Hospitality Management.

Digital age—Software companies began developing new tools

for the hospitality industry that are still evolving today, including
customer databases and systems for reservations, room and
housekeeping management, customer preferences, loyalty
programs and more.

1993—The travel industry was quick to take advantage of the

advent of the Internet, giving customers the opportunity to
compare, book and review hotels from their home computer.

1997—Hotel Adlon Berlin, destroyed in 1945, is rebuilt for $260

million on its original site facing the Brandenburg Gate. Its
exterior is a virtual replica of the original; inside, the rooms are
the ultimate in luxury.

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Early 21st century—Global corporate hotel chains merge and
acquire each other. InterContinental Hotel Group now owns
Holiday Inn and Crowne Plaza; Marriot owns Renaissance;
AccorHotels owns the brands Raffles, Sofitel and Novotel.

2009—AirBnB is founded, challenging the hotel industry by

attracting tourists and taking market share. Hotels respond with
creative marketing approaches, including social media campaigns
and personalized customer experiences created through smart
devices.

2014—The Waldorf Astoria New York is sold to the Chinese

Anbang Insurance Group for $1.95 billion, the most ever paid for
a hotel.

2015—The First World Hotel in Pahang, Malaysia, expands to

become the largest hotel in the world, with 7351 rooms.

Throughout the centuries, the basic principles of hospitality have

remained the same. But today, managing a hotel requires
extensive knowledge of hospitality management strategies, and
formal education in the field is key. Kendall College offers a
Bachelor’s in Hospitality Management that is considered the No. 1
program in Chicago for preparing students for careers in
hospitality.* You will learn about financial management,
marketing, human resources, sustainability and much more. You
will also get real-world experience with practical projects, two
required internships and the chance to study abroad.
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