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MODULE 1 INTRODUCTION
OF THE HOSPITALITY INDUSTRY

MODULE 1 INTRODUCTION
OF THE HOSPITALITY
INDUSTRY

HM 101/ HM 102
FUNDAMENTALS IN LODGING
OPERATIONS
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INTRODUCTION

Welcome to You, the Future

Hospitality Industry Leaders!
The hospitality industry is a fascinating, fun, and stimulating one in which to enjoy a career, plus
you get compensated quite well and have excellent advancement opportunities.

When most people think of the hospitality industry, they usually think of hotels and restaurants.
However, the true meaning of hospitality is much broader in scope.

The Hospitality Industry offers employment to people of differing personalities, background and
skills through a wide diversity of type of outlet s serving food and beverages.

INTENDED LEARNING OUTCOMES

• Define and explain hospitality industry.
• Describe the characteristics of the hospitality industry.
• Understand the history of lodging industry.
• Classify the lodging establishments
• Lodging in the Travel and Tourism Industry

LEARNING CONTENT
Definition of Hospitality Industry
One of the fastest growing sectors of the economy today is the Hospitality Industry. It can be
defined as meeting the needs of guests in a variety of establishments.

According to the Oxford English Dictionary, hospitality means “the reception and entertainment
of guests, visitors or strangers with liberality and good will.” The word hospitality is derived from
hospice, the term for a medieval house of rest for travelers and pilgrims.
Hospice—a word that is clearly related to hospital—also referred to an early form of what we
now call a nursing home.

• Hospitality through the Ages

- The concept of hospitality is as old as civilization itself.
- Its development from the ancient custom of breaking bread with a passing stranger to
the operations of today’s multifaceted hospitality conglomerates makes fascinating
reading, and interesting comparisons can be made with today’s hospitality management.
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- The word hospitality comes from hospice, an old French word meaning “to provide
care/shelter for travelers.”
- The most famous hospice is the Hospice de Beaune in the Burgundy region of France,
also called the Hotel Dieu or the House of God. It was founded as a charity hospital in
1443 by Nicolas Rolin, the Chancellor of Burgundy, as a refuge for the poor.

Ancient Times
- The Sumerians (who lived in what is now Iraq) were the first to record elements of
hospitality in about 4,500 years B.C.E.
- Taverns served several beers.

Greece and Rome

- The Code of Hammurabi (circa 1700 b.c.e.). The Code required owners to report guests
who planned crimes in their taverns.
- Travel was slow and journeys long and arduous, many travelers depended solely on the
hospitality of private citizens
- In the Greek and Roman empires, inns and taverns sprang up everywhere.
- Social and religious purposes
- Roman businessmen traveled
- After fall of roman empire, public hospitality fell to religious orders

Medieval Times
- On the European continent, Charlemagne established rest houses for pilgrims in the
eighth century
- In 1282, the innkeepers of Florence, Italy, incorporated a guild, or an association
for the purpose of business.
- In England, the stagecoach became the favored method of transportation.
- Inns or taverns that were also called post houses
- In the late sixteenth century, a type of eating place for commoners called an
ordinary began to appear in England. These places were taverns serving a fixed price,
fixed-menu meal at a long common table
English Travelers
- Inns were actually private homes

Coffee Houses
- During the sixteenth century, two “exotic” imports began to influence the culinary
habits of Western Europe: coffee and tea
- Travelers to Constantinople (now Istanbul, Turkey) enjoyed coffee there and brought it
back to Europe.
- During the seventeenth century, coffeehouses sprang up all over Europe
- The first English coffee house was opened in 1652.
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The New World

- It was in Boston where the first ordinary was recorded—Cole’s Ordinary—in 1663
- The Dutch built the first known tavern in New York—the Stadt Huys—in 1642
- Famous Frauncis Tavern was the Revolutionary headquarters of General George
Washington and was the place where he made his famous farewell Address.
- The innkeeper was often the most respected member of the community and was always
one of its more substantial citizens

The French Revolution

- The French Revolution helped to change the course of culinary history.
- M. Boulanger, “the father of the modern restaurant”. He called his soups restorantes
(restoratives), which is the origin of the word restaurant
- Hearty fare of the British and the primitive cooking of the Americans were laced with
sauces piquantes (sauces having a pleasantly sharp taste or appetizing flavor) and pots au feu
(French beef stew).

The Nineteenth Century

- In 1856, Antoine Carême published La Cuisine Classique and other volumes detailing
numerous dishes and their sauces
- The grande cuisine offered a carte (or list) of suggestions available from the kitchen. This
was the beginning of the à la carte menu
- In 1898 the Savoy Hotel opened in London. The general manager was the renowned
César Ritz (today, the Ritz-Carlton hotels bear his name) and the chef de cuisine was
August Escoffier
- August Escoffier is best known for his classic book Le Guide Culinaire

The Twentieth Century

- In 1921, Walter Anderson and Billy Ingraham began the White Castle hamburger chain.
The name White Castle was selected because white stood for purity and castle for
strength
- The Four Seasons was the first restaurant to offer seasonal menus
- In the 1980s, hospitality, travel, and tourism continued to increase dramatically

1960 to Today
- Major growth in casual dining
- Increase in the number of hotel chains
- Mass tourism
- Package travel
- Baby Boomers
- Mergers and acquisitions
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CHARACTERISTICS OF HOSPITALITY INDUSTRY
Guest Satisfaction- outstanding service, which leads to guest loyalty and profit.
Intangible – services cannot see and touched but can felt. The guest cannot “test drive” a
night’s stay or “taste the steak” before dining.

Inseparability- is the characteristic that a service has which renders it impossible to divorce
the supply or production of the service from its consumption
Perishability- service cannot be stored because they are highly perishable. Unused 'service of
today cannot be sold the next day

History of the Lodging Industry

The Code of Hammurabi, dating back to about 1800 B.C., made a reference to “tavern keeping,”
another term used for inn-keeping in that day.

In Europe

During the Middle Ages in Europe

• Religious pilgrimages were the primary reason for traveling,
Fifteenth century
• Many European cities became centers of commerce and culture.
• Inn keeping for profit began.

In America
Seventeenth and Eighteenth centuries
• Inns and taverns were important centers of activity.
• The early inns were sometimes called Cradles of Liberty
• The inns of Colonial America, called ordinaries

Beginning of the Nineteenth Century

• Lodging establishments that were larger and more commercial than inns emerged,
along with the term hotel
• Early hotels in the United States included the six-story, 200-room City Hotel in
Baltimore, built in 1826, and the Tremont House in Boston, built in 1829
• The grand hotels of the world were:
• Grand Hotel in Rome
• Paris Ritz, and the Savoy of London
• The Waldorf Hotel in New York City was one of the first properties in the States
to provide many of the European amenities.
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• North American hotels grew to serve the rail traveler.

UNITED STATES HOTEL INDUSTRY: 1900–2010

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THE EVOLUTION OF THE MOTEL

Motels tended to be built at the edge of town, where land costs were substantially
lower than downtown. The single-story construction that typified motels until the late
1950s (and even the two-story pattern of later motor hotels was significantly less expensive
compared with the downtown high-rise properties that were built on prime real
estate.

THE MOTOR HOTEL

In 1952, Kemmons Wilson, a Memphis home-building and real-estate developer, he visioned a
new kind of motel property that combined the advantage of a hotel’s broad range of services
with a motel’s convenience to the auto traveler., Which came to be known as the motor hotel.

DIMENSIONS OF LODGING
Full-service hotel: A lodging facility that offers complete food and beverage services.
Room service: The delivery of food and beverages to a hotel guest’s sleeping room.
Limited-service hotel offers very limited food and beverage service. In some limited-service
hotels, no food or beverages are offered to guests.
Bed and breakfast inns: Very small properties (one to several guest rooms) owned or managed
by persons living on-site; these businesses typically offer one meal a day; also called B&B.
Camps/park lodges: Sleeping facilities in national, state, or other parks and recreational areas
that accommodate visitors to these areas.
Conference center: A specialized hospitality operation specifically designed for and dedicated to
the needs of small- and medium-sized meetings of 20 to 100 people
Resort: A full-service hotel with additional attractions that make it a primary destination for
travelers.
Timeshare: A lodging property that sells its rooms to guests for use during a specific time period
each year; also called vacation ownership property.
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Private clubs: Membership organizations not open to the public that exist for people enjoying
common interests. Examples include country (golf) clubs, city clubs, university clubs, yacht clubs,
and military clubs. Some private clubs offer sleeping rooms for members and guests.
Cruise ship: A passenger vessel designed to provide leisure experiences for people on vacation
at sea.
Casino: A business operation that offers table and card games along with (usually) slot operations
and other games of skill or chance and amenities that are marketed to customers seeking gaming
activities and entertainment.

CLASSIFICATION OF LODGING ESTABLISHMENTS

Lodging properties can be categorized according to varied criteria. Classification criteria can
include price, function, location, particular market segment, and distinctiveness of style or
offerings. It should be emphasized that many types of hotels can fall into more than one category.

HOTELS CLASSIFIED BY PRICE

1.Limited-service Hotels
- A lodging facility that offers no, or very restricted, food and beverage services.
- Typically offer guest rooms only.
- There is little or no public space, no meeting or function space, and usually no or very limited
food and beverage facilities.
- “budget” or “economy” hotels.

2. Select-service Hotels
- these hotels are filling a niche created by guests who want value in their lodging experience
- but also require some basic services these hotels offer limited food service operations and scaled-
down meeting space but typically include lounge areas for working and socializing, hot breakfast
service, and free high-speed Internet access.

3. Full-service Hotels
- offer a wide range of facilities and amenities.
- more public space and meeting/function space, with at least one food and beverage facility.
- catered primarily to business travelers and leisure travelers

4. Luxury Hotels
- these properties offer a full array of services and amenities.
- usually have from 150 to 500 guest rooms.
- Such hotels typically have a concierge service and several food and beverage operations,
including a gourmet or fine-dining restaurant, banquet facilities, and full room service
- Recreational facilities or access for guests to nearby facilities is also usually available.
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HOTELS CLASSIFIED BY FUNCTION

1.Convention hotels
- These properties offer extensive meeting and function space, typically including large ballrooms
and even exhibition areas.
- The average size of convention hotels in 2005 was 780 rooms.
- Food and beverage operations tend to be extensive, with several restaurants and lounges,
banquet facilities, and room service
- Convention hotels are often inclose proximity to convention centers and other convention
hotels, providing facilities for citywide conventions and trade shows

2. Commercial hotels
- There is less public space, smaller meeting and function space, fewer food and beverage outlets,
and limited recreational amenities.
- are smaller, with 100 to 500 guest rooms.
- Many of these hotels tend to be located in downtown areas.

HOTELS CLASSIFIED BY LOCATION

1.Downtown hotels
- They are near the large office complexes and retail stores; by day, they are near business
destinations; by night, they are close to many of a large city’s entertainment centers
- Downtown hotels almost always command higher rates than suburban hotels
-tend to be smaller (200 to350 guest rooms) and involve low- to midrise structures.

2. Highway/interstate hotels
- are even smaller, with 100 to 250 rooms, and are low-rise properties

3. Suburban hotels
- most likely have interior corridors and meeting and banquet facilities whereas
highway/interstate properties most likely have exterior corridors leading to guest rooms,
minimal banquet and meeting space, and some food and beverage facilities.

HOTELS CLASSIFIED BY MARKET SEGMENT

1. Executive conference centers

- are often in secluded or suburban settings and have fewer than 300 guest rooms
- These facilities, which offer well-designed learning environments, provide a variety of small
meeting rooms and classrooms featuring full audiovisual and technological support
- Meals and use of recreational facilities are often included in the quoted daily room rate

2. Resorts
- are typically located in picturesque settings and have 200 to 500 guest rooms.
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- Resorts provide a comprehensive array of recreational amenities, depending on the geographic
location.
- Resorts can be characterized as:
• Destination Resort- these tend to be in dramatic, desirable locations. Hotel guests tend to
have to travel at least several 100 miles to reach such a resort, and travel is typically by
air. Visits to destination resorts tend to be infrequent, usually once a year or less.
• Non-Destination Resort- or regional resorts involve a two- to three-hour trip for visitors
and are usually reached by car. The visits to such locations are more frequent but usually
for shorter periods of time as compared to the destination resorts.

3. Casino Hotels
- In casino hotels and resorts, gaming operations are the major revenue centers.

4. Health Spas
- often located in resort-type settings or as a part of a larger resort, provide additional amenities
focusing on needs ranging from losing weight, to reducing stress, to pampering oneself
- There are a number of categories of spas, including spas with natural mineral hot springs,
beauty spas, fitness spas, international-style spas that emphasize health therapies, behavior
modification spas, holistic spas, resort spas, and spa facilities within hotels

5. Vacation Ownership
- “type of shared ownership in which the buyer purchases the right to use a residential dwelling
unit for a portion of the year

OTHER HOTEL CLASSIFICATIONS

1. All-suite hotels
- Guest rooms are larger than the normal hotel room, usually containing more than 500 square
feet.
- living area or parlor is typically separate from the bedroom, with some properties offering
kitchen areas.

2. Extended-stay hotels
- provide many of the same features and amenities as all-suite properties
- typically there are no on-site food and beverage outlets in extended-stay hotels

3. Historic Conversions
- Some hotel properties have historic significance and have been renovated to their original
splendor
- These classic hotels have great appeal for those wishing to experience some of the grandeur
and elegance of earlier days with the comforts of modern-day features.

4. Bed and Breakfast Inns (B&B)

- typically has five to ten rooms with the average size being eight rooms
- Breakfast is served and included in the room rate for these properties.

5. Boutique hotels
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- span all price segments and are noticeably different in look and feel from traditional lodging
properties
- Travelers’ desires to be perceived as trendy, affluent, and artistic tie into boutique themes

LODGING IN THE TRAVEL AND TOURISM INDUSTRY

As you have learned, the lodging industry is not only part of the hospitality industry, it is also
part of the even larger travel and tourism industry or, simply, the tourism industry.

The tourism industry consists of:

1. Hospitality: The food and beverage and lodging operations (including hotels) that house
and feed travelers.
2. Retail (Shopping) Stores: Stores and shops that appeal to travelers.
3. Transportation Services: Businesses such as bus lines, airlines, and rental car companies
that help move travelers from place to place.
4. Destination (Activity) Sites: Locations offering activities and attractions enjoyed by
travelers. Examples include amusement parks and ski resorts as well as other indoor and
outdoor activities.

Types of Traveler
Leisure Traveler
- In the hotel business, the term “leisure traveler” refers to persons who travel because they
like the experience of visiting new places, are returning to places they have previously
visited, or are participating in some leisure activity
- Leisure travelers include vacationers and people traveling to shop, sightsee, attend
concerts, and for a wide range of other activities.

Business Traveler
- include those who attend work related meetings, seminars, and conferences
- Salespersons for business must travel to meet clients, demonstrate new products, and
learn new skills
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- Business travelers tend to spend more money for their overnight stays and also look for
amenities and guest services not always offered at hotels geared toward leisure travelers.