Hospitality 1 exam

Tourism definition

"The activities of individuals away from home for more than 24 hours and less than one year"

Tourism industry definition

"the collection of businesses and governmental organizations that serve the traveler away from home"

LEAVE Strategy

- An ACRONYM describing how to react to service failure to turn service failure into customer satisfaction.

Airline Deregularion

-1978...US federal law...changed the landscape of the industry -removed gov control over fares, routes, and market entry -The act did not change the regulatory powers of (FAA) over all aspects of air safety

Trends Impacting the Hospitality and Tourism Industry

-Baby Boomers -Social media Globalization - Mufti-cultural guests are served by highly diverse team members Safety and security - must be perceived by the guest and ensured by the organization and destination, especially since 9/11 Emphasis on Service- with increasing competition and guests level of demands consistently increasing, exceeding guest expectations is a goal Going green and corporate citizenship - Today's guests and employees want to purchase from and work for companies with high integrity and environmental commitment Emphasis on Technology - ever evolving as part of the product provided, part of the service and operations, and part of marketing Changing demographics- aging baby boomers drive our market Price and value- more important than ever to ALL guests rich and poor 300 million new passports have been issued to the citizens of China and India over the past 5 years Healthy products, services and recreation - answer to a clientele with a focus on nutrition and exercise ( maturing Baby Boomers) Increased sophistication and expectations of guest Increased completion Maturity of industry means product differentiation cannot exist; service differentiation can Busy lifestyles; Two income Families Purchasing for the experience rather than just the product and service

The Service Failure Paradox

-Higher customer satisfaction can be achieved when an error is made and effectively resolved than when no error is made whatsoever -This applies to the first service failure ONLY

Tourism in 2020

-International Arrivals expected to reach over 1.56 billion by 2020 -top receiving areas: Europe, The America's, East Asia & the Pacific THEN: Africa, the Middle East, South Asia

Benefits of Tourism

-Job Creation -Largest Export Earner -Investment in Infrastructure -Leading producer of Tax Revenues -Intercultural Awareness -World Peace

United Nations World Tourism Organization:

-Leading international organization in the field

Multiplier effect

-New $ -Supplier and payroll to support and provide production and services -Suppliers and employees spend money on items for their wants an needs -Others in the community rece

Minister of Tourism

-None in the US -TIA:

TQM Total Quality Management

-Quality Control in Service Delivery

IATA (International Air Transport Association)

-Regulating all international airlines -Facilitates transport via a network of routes -Standardize baggage checks -Unify accounting procedures to promote efficiency of promote efficiency of interline bookings and connections

OECD (organization for economic cooperation and development)

-Studies and offers recommendations regarding tourism problems -standard tourism definitions and measurements

Economic Impact of Tourism

-World impact $4.6 trillion -International arrivals are estimated at 1.56 billion by 2020 -$100 billion generated in tax receipts -Balance of trade in US favor by $21 billion

Air Travel

-allows access and convenience to remote destinations -Reasonable fares make travel available to more and more individuals -H&T industries rely heavily on air travel (inter-dependency) -4500 planes in the air over the U.S. at any time -1 billion person flights annually in and out of the US

State offices of Tourism

-growth and development of tourism in their state advertising and promotion information programs

World Bank

-lends funds for tourism development -low interest loans

rail travel

-major factor in development of travel and tourism industry making travel comfortable and cheap enough for the masses (1830's) -important for heavily trafficked areas -cars and buses caused decline Amtrak Rail passenger service act 1970 used in European and Asian markets

Big airlines are losing money whereas the smaller, low-cost airlines are flourishing

-one type of aircraft -point to point itineraries -no frills service -better retention

Automobile Travel

-primary form of domestic travel (75%) -American way of life since the 1920's -Largest segment of ground transportation -Fostered the growth of: 1) rental cars 2) motels

Continued growth and increased employment opportunities

-reasonably price airfares -opening of borders -two income earners -favorable demographic trends (Baby boomers)

Maglev

-super fast train suspended in the air -propelled by magnetic forces 300 mph

Tourism

-worlds largest industry -close to 1 billion (person) trips in and out of the United States -11.2% of the world GDP -Employs 217 million people (8.9% of the global workforce) -Leading producer of tax revenues -4% annual forecasted growth

Facts about the Hospitality and Tourism Industry:

1) Largest and fastest-growing industry on earth 2) Mature and highly competitive; monitoring and responding to changing trends is essential 3) Open 365 days a year, 24 hours a day 4) Serving a highly diverse, global clientele 5) Selling experiences, memories and connectedness

Driving for growth

1) the opening of borders 2) reasonably priced airfares 3) two income earners a) increased incomes b) seek good value for their money c) seeking quality time hence vacations are necessary 4) favorable demographic trends a) most baby boomers are in their 50s and 60s (retirement) b) higher incomes & greater propensity to travel

The Manager's Role in Employee Empowerment

1.Train employees 2.Allow them to take risks 3. Delegate more power and responsibilities 4. Foster a learning environment 5. Share information and encourage self-expression 6. Acknowledge and reward their contributions and achievements

Tourism industry represents 1 in __ jobs generated

11.7%

Restaurant sales ___ generated by visitors

25%

Organizational Culture

A set of shared values within a company 1. Identifies where emphasis and investment will occur 2. Provides quality controls via mutual understanding in service organizations 3. Employees learn what is important to the organization in the hospitality industry

Service

All actions and reactions that guests perceive they are purchasing.

The Seven Deadly Sins of Service

Apathy Brush-off Coldness Condescension Robotics Rule book Runaround

While providing hospitality one is involved with...

Creating memorable experiences Being an Ambassador of the world Providing warmth and caring

Employee empowerment

Employee retention increases when workers are regarded as highly valued assets by management and owners. Employee Turnover decreases when workers are satisfied. The high levels of employee turnover which plague Hospitality and Tourism has turnover places enormous financial hardship on the individual businesses in the industry. When turnover is high, new hires often deliver service to guests. This often results in compromised service quality as new hires learn about their roles and their product. When employees leave, customers who have developed bonds with the works become disappointed or disenfranchised.

the WOW factor -

Exceeding expectation and creating memories

American Express Travel services

Foreign Currencies, Travelers checks majority: business travel through corporate accounts national account managers

Categories of Tourism

Geography

Ownership

Government, Quasi- Government, Private

Industries of Hospitality and Tourism

Hotel and Lodging Industry Restaurant and Foodservice Industry Transportation Industry (Airlines, Trains, Cars, Busses) Cruise Industry Theme Park and Amusement Park Industry Attractions Industry Casinos/Gaming Entertainment Industry Club Industry Corporate Event Industry Special Event Industry

Employee teams define what guests expectations are :

How they can best be met Keeping in mind cost, time and feasibility Continuous improvement is emphasized , encouraged and rewarded

Characteristics of the Hospitality and Tourism Industry

Intangibility: services may not be often seen, felt, tasted and smelled before they are purchased. Inseparability: Both the service provider and the customer must be present for the transaction to occur. Variability: Service quality depends on who provides the services and when and where they are provided. Perishability: Services cannot be stored. Once a plane leaves or a day ends, they can never again be sold. Labor intensive: High dependency on people High fixed cost: High construction and maintenance cost

Essentials for excellence in service:

Knowledge On Time Defect Free Delivered by a courteous and welcoming person

LEAVE

Listen to the customer and to determine the problem while allowing the guest to vent. Empathize. Show that you to understand the customer's emotion and the content of his complaint. Ask questions to redirect the customer's thinking and focus on problem-solving. Verify the complaint and validate the fact that the customer's satisfaction is important to you. Explore possible solutions and explain what you will do to resolve the issue.

Geography

National, International, Regional, State, City

Tour Operators

Over 1600 in the US Carry 500,000/year Arrange all aspects 1 transfers 2 hotels 3 restaurants 4 attractions *excellent in risky or highly unfamiliar destinations *vacation packages for independent travel

Motive

Profit or Non-Profit

Function

Regulators, Suppliers, Developers, Educators

The UNWTO Promotes:

Responsible, Sustainable Tourism Economic development and job creation Universally Accessible Tourism A global code of ethics for tourism, human rights and international cooperation (The US is not a member)

The efficient airlines

Southwest Airlines Airtran United Delta Jet Blue

Ways

Take great care of your employees. Determine their needs and meet them to the best of your ability. Employees will take great care of the guests. Determine their needs and meet them to the best of your ability. Excellent, caring service is vital for high levels of customer satisfaction and loyalty. Profits result. Loyal customers buy more, won't leave, and recommends the business to many other people.

Empowerment Strategies give employees:

The authority to make their own decisions when serving guests Speak out about their problems and concerns Take responsibility for their actions Consider themselves a network of professionals Higher levels of commitment and engagement

Success in Service

The desire to delight Product knowledge Focus on guest satisfaction and consistency Emphasis on constant improvement of the guest experience Creating a service culture Emphasize high-touch (instead of high tech) Promptly address service failure Empowerment and satisfaction of internal customers

Describing Today's Guests

They have high expectations They have high value perceptions They are sophisticated They are perfectionists They always have other choices

Inter-dependency between the segments of tourism:

Travel Lodging Food service Recreation

TIA:

Travel industry of America -promotion and development of US tourism 1) Unifying goals 2) Coordinating private sector

Personalized Service -

adjusting delivery specifically for the guest to satisfy their specific needs and make them feel valued

Hub-and-spoke system benefits

airlines can service more cities at a lower cost airlines can maximize passenger loads from small cities thereby saving fuel

Hotels derive almost ___ sales from tourists

all

traveling by bus

character and tour services are utilized in the industry providers of additional services for tourism needs Gray line worldwide, Contiki tours and Canadian tours international

City offices of tourism (CVBs)

convention and visitors bureaus represent all tourism organizations within a city (without bias) -to attract visitors to an area -funded by transient occupancy tax -membership dues

Anticipatory Service -

delivering what guest desires before they even ask

Moment of Truth-

every guest interaction

PATA (Pacific Area Travel Assn)

excellence in travel and tourism growth

The Service-Profit-Chain describes

how employees treat their guests is a direct result of the way they are treated by their organization and their leaders.

Corporate travel manager

in-house position

Domestic Tourism

inbound international + internal tourists (you are in a different country

National Tourism

internal tourists + outbound international tourists

Feeder maket

is a market that provides the source-in this case, passengers for the particular destination

Travel and Tour Wholesalers

live and virtual

Traveling by train

mass travel was cheaper for everyone high speed trains in Europe and parts Asia (eliminate traffic issues, energy efficient, smooth

NTO

national tourism organization

Travelers in the airline industry are _____ but carriers are ____________ on fuel/pensions/salaries and benefits= ____________

paying less spending more cutbacks and layoffs

Hospitality is evidenced when

people are happy to do something extra to make the guest's experience memorable. It involves making visitors feel welcome and comfortable

The Hospitality Industry includes institutions that:

provide services to people away from home and the organizations that service them

The Service Quality Factor -

strategies to meet and exceed guest expectations; these must be designed and delivered

Hospitality is

the RECEPTION and ENTERTAINMENT of guests, visitors or strangers with GENEROSITY and GOODWILL.

Outbound

visits by residents of a country to other countries (when you visit a foreign country, when you go OUT somewhere new)

Internal Tourism

visits by tourists to their own country

Inbound International tourism

visits to a country by nonresidents (when foreign people come IN to your country)