Session 1- The Hospitality and Tourism Context

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    Session 1

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    Dr Hadyn Ingram

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    To expose and to help students understandand analyse: the nature and extent of the hospitality and tourism

    context: breadth and scope

    its homogeneous products and heterogeneity its simplicity and complexity

    its systems and people processes

    its customers and their needs and wants

    its management issues

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    Tourism is travel for recreational, leisure orbusiness purposes.

    The World Tourism Organisationdefinestourism as travelling to and staying in placesoutside their usual environment for not morethan one consecutive year for leisure,business and other purposes. World Tourism Organisation (1995), UNWTO technical manual: collection

    of tourism expenditure statistics, page 14.

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    comprised of commercial organisations thatspecialise in providing accommodationand/or food, and/or drink through avoluntary human exchange, which is

    contemporaneous in nature and undertakento enhance the mutual well being of theparties concerned.

    (Lashley and Morrison (eds.), 2000:143)

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    From Latin com (together) textere(weave) A weaving together, woven together

    (Websters Comprehensive Dictionary, 1971: 28).

    Background, circumstances, environment,

    frame of reference, milieu, position, setting,situation, surroundings (Oxford Compact Dictionary, 1997: 156).

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    Interrelated and interdependent networks: Tour operators, travel agents and tourism

    organisations

    Travel and transport operators

    Leisure, recreation and entertainment venue Restaurants, bars, clubs and cafs

    Hotels, resorts, motels, camping grounds, bed andbreakfast (B&B) establishments and hostels

    Source: Kandampully, 2007

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    Source: Johnson et al. (2011: 49)

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    Genuinely hospitable Reciprocal motives: entertaining others

    Vanity: showing off

    Profit motive.

    Like a doctor or nurse, do you have to c re

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    PRIVATE COMMERCIAL

    SOCIAL

    HostPhysiological.Psychological needs

    Dealing with strangersStatus and prestige

    Making a surplusProduct, marketlimitations

    Source: Lashley and Morrison (2001:4)

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    Travel and transport Accommodation (lodging)

    Food and beverages

    Entertainment and recreation

    Tourism offices or destination managementorganisations (DMOs)

    Nongovernmental tourism organisations

    Source: Okumus, 2010: 23

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    Type Accommodation= hotels, motels, villas, timeshare

    Quality Star rating, market (e.g. Budget)

    Size Small, medium, large (SMEs dominate worldwide)

    Geography Regions

    Location Resort, city centre, rural

    Ownership Independent, branded, franchised

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    SIC Codes 2007 55.10: Hotels and similar accommodation 55.20: Holiday and other short stay accommodation 56.10: Restaurants and mobile food service activities 56.21: Event catering activities

    56.29: Other food service activities 56.30: Beverage serving activities 79.11: Travel agency activities 79.12 Tour operator activities 79.90: Other reservations service and related activities 82.30: Convention and trade show organisers 92.00: Gambling and betting activities 93.21: Activities of amusement parks and theme parks

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    OK, what exactly is the scope of hospitalityand tourism?

    With the person next to you, prepare a listof the different types of hospitality andtourism organisations

    You have 10 minutes to make your list.

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    Hospitality and tourism occurs in a place orvenue or destination Minimalist view: about accommodation, food, drink

    and experience

    Is hospitality and tourism mere retailing? Goods and services are consumed in the venue, and

    in retailing, goods consumed elsewhere

    Managers involved in context of consumption and

    the management of consumption, but not inretailing

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    Inseparability (customer participates in serviceprocess)

    Simultaneity (services created and consumed atsame time)

    Perishability(services cannot be stored)

    Tangibility(tangible and intangible components)

    Heterogeneity(services vary considerably)

    Cost structure (high investment and fixed costs) Labour intensive (rely on people to deliver

    services)

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    Free-standing

    hospitality

    businesses

    Hospitality in

    leisure venues

    Hospitality in

    travel venues

    Subsidised

    hospitality

    Hotels Casinos Airports Workplaces

    Holiday centres Bingo clubs Rail stations Health care

    Quasi hotels Night clubs Bus stations Education

    Cruise ships Cinemas Ferry terminals Military

    Time-share Theatres Aeroplanes Custodial

    Bars Sports stadia Trains Retailers

    Restaurants Theme parks Ferries

    Attractions

    Health clubs

    (Source: DrKW, 2001)

    (Source: DrKW, 2001)

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    SUCCESSFULHOSPITALITYCOMPANIES

    Fast food Restaurants

    HotelsPubs

    Source: Brotherton (2000: 9)

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    Arrivals grew by 4.4% in 2011 to 980,000,000and set to reach one billion in 2012

    Receipts exceeded $US one trillion in 2011 Source: http://mkt.unwto.org/(accessed 7 June 2012)

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    http://mkt.unwto.org/http://mkt.unwto.org/
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    Hospitality contributed $30.1 billion in 2007 Tourism contributed 43.7 billion in 2009

    (3.9% of GDP)

    Forecast in 2020 73.2 billion, supporting1.2 million jobs. Direct and indirect benefits158.4 billion, 8.6% GDP and supporting 2.4million jobs

    Source: The hospitality, leisure, travel and tourism Industry, (Covered by

    the Sector Skills Council People 1st), Leicester and Leicestershire SectorSpecific Labour Market Intelligence, 7/5/11, accessed 11thJune 2012

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    57% female 45% part time

    44% under 30 years of age

    Younger, transient workforce 30% bar staff and 40% waiting staff are

    students

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    Context is complex and not clear-cut Definitions are confusing

    Not well researched

    Characterised by SMEs Operations-centred

    Important and growing

    Workforce young and transient

    People at the heart of the process

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    Look at the websitewww.peartreeapartments.co.ukand get a feelfor what type of business it is

    Salisbury Where is it?

    What is it famous for?

    What sort of hotel and tourism market is it?

    Be prepared to answer questions and find outmore.

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    http://www.peartreeapartments.co.uk/http://www.peartreeapartments.co.uk/