hospitality and tourism benefits

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Chapter 16 Hospitality and Tourism

Learning objectives.

• Understand what tourism is: definition, components, and importance.
• Understand the economic, social, and environmental benefits and costs of tourism.
• Define hospitality and the pineapple tradition.
• Identify the types of hotel categories and how they are determined.
• Examine the different categories of food service operations.
• Understand the different types of events, meetings, and conventions.

The tourism industry is often cited as the largest industry in the world, contributing 10 percent of the world’s GDP. In 2016 there were over 1.2 billion international tourists: that’s a substantial economic impact and movement of goods and services! [1] Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site. Before we dig any deeper, let’s explore what the term “tourism” means.

Definition of Tourism

There are a number of ways tourism can be defined. The United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure. [2]

In other words, tourism is the movement of people for a number of purposes (whether business or pleasure). It is important to understand the various groups and constituencies involved in this movement. Of course it includes the tourist, but also the vast array of businesses providing goods and services for the tourist, the government and political structure of a destination, and the local residents of the destination community itself. Each of these components are necessary parts of a successful tourism destination and operate within private and public sectors, the built environment, and the natural environment. All these come together to create the processes, activities, and outcomes of tourism.

If it all seems a little overwhelming, it might be helpful to break tourism down into broad industry groups, each of which will be covered in this chapter:

Accommodation and Lodging

• Food and Beverage Services (F & B)

Recreation and Entertainment

• Convention & Event Management

Travel Services

• Private Clubs

Benefits and Costs of Tourism

Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently.

Economic Impacts of Tourism

The tourism industry has a huge economic impact that continues to expand to new markets and destinations. According to the UNWTO, in 2016 “The total export value from international tourism amounted to US$ 1.5 trillion.” [3]  Regions with the highest growth in terms of tourism dollars earned (2016 vs 2015) are Africa, Asia and the Pacific, the Americas Europe. Only the Middle East posted negative growth at the time of the report. As well, the UNWTO’s Tourism 20 3 0 Vision report predicts that international arrivals will reach nearly 1.8 billion by 2030. [4] Figure 16.2 provides additional information about the impact of tourism worldwide.

Positive impacts from this economic boom include robust foreign exchange, increases in income, and GDP growth. Tourism can also offer diverse employment opportunities, can be developed with local products, and is often compatible with other economic activities within a destination. Tourism often injects money into the community that leads to secondary economic development as well. For example, successful resorts may create the need for a commercial laundry facility or a pet boarding business.

However, there are also negative impacts. Property values may increase to the point of unaffordability for local residents, and the seasonality of the tourism industry may create a feast-or-famine economy. As with any economy, if too many resources are focused on just one industry, communities may be vulnerable to any unexpected economic, social, or environmental changes. One example is the New Jersey shore after the devastation of Hurricane Sandy in 2012. The tourism industry was severely impacted, leaving no economic fallback for local residents.

Social Impacts of Tourism

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts, culture, heritage and tradition, celebration of indigenous communities, and community pride. Tourism also has the potential to break down language, socio-cultural, religious, and political barriers. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and promotes a positive image of the destination.

However, as identified by the United Nations Environment Programme, negative social impacts of tourism can include: change or loss of indigenous identity and values; culture clashes; changes in family structure; conflict within the community for the tourism dollar; and ethical issues, including an increase in sex tourism, crime, gambling, and/or the exploitation of child workers. [5]

Environmental Impacts of Tourism

Tourism relies on, and greatly impacts, the natural environment in which it operates. In some destinations, there is a great appreciation of the environmental resources as the source of the tourism industry, and as such there are environmental protection policies and plans in place. Tourism has helped to save many delicate ecosystems and their flora and fauna. Preservation of these important resources benefits not only the tourist but also the local residents as well.

Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative economic impacts. According to The United Nations Environment Programme, these can include the depletion of natural resources (water, forests, etc.), pollution (air pollution, noise, sewage, waste and littering), and physical impacts (construction activities, marina development, trampling, loss of biodiversity, and spread of disease). [6]

The environmental impacts of tourism can reach beyond local areas and have an effect on the global ecosystem. One example is increased air travel, which is often identified as a major contributor to climate change.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate.

The Hospitality Industry

When looking at tourism it is important to consider the term hospitality. Some define hospitality as “the business of helping people to feel welcome and relaxed and to enjoy themselves.” [7] Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry.

The pineapple has long been the symbol of hospitality. The Caribs, indigenous people of the Lower Antilles in the Caribbean, first used it as such a symbol. The Spaniards knew they were welcome if a pineapple was placed at the entrance to the village. This symbolism spread across Europe and North America where it became the custom to carve the shape of a pineapple into the columns at the entrance of the plantation. [8] Charles Carter added a three and a half foot wooden pineapple to the peak of the roof at Shirley Plantation, the first plantation in Virginia. [9] It is now common to see the image of the pineapple as a sign of welcome, warmth and hospitality.

The types of employees and resources required to run an accommodation business—whether it be a hotel, motel, or even a campground—are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation and lodging . Figure 16.4 summarizes the various groupings within the industry.

Hotel Types

Hotels are typically referred to by hotel type or other classifications. Hotel type is determined primarily by how it will function and what amenities will be included within the property. Size, location, service levels and type of business or targeted market segments are additional classifications. Industry also classifies hotels by chain scale … separating hotels into categories determined by their average daily rates. Various ownership structures and brand affiliations also differentiate hotels.

Classifications

Hotels may be classified on a number of different variables. Type of Hotel : There are numerous classifications by hotel type including all-inclusive hotels, all-suite properties, B&B/Inns, boutique, convention/conference centers, condo hotels, resort, extended stay, full service, casino, limited service and timeshare properties. Size and Complexity: A hotel can be classified by the number of guest rooms it has; hotel sizes can range from a small boutique hotel with fewer than 50 rooms to a large resort hotel with more than 1,000 rooms. The complexity of the hotel is determined by the volume and number of additional revenue generating functions such as the square feet of available conference space, number of F&B operations and additional services and amenities like pools, fitness centers, spas, golf, etc. Location: The location of a hotel can also determine the type of guest served. An airport hotel may be very different from a city-center property in an urban environment, or a remote island resort or a small quaint bed and breakfast located on top of a mountain. Hotels that specialize in conferences, may locate near entertainment destinations like Las Vegas or Disney theme parks to provide pre-post conference activities for attendees. Service Level: The level of service provided is also a key variable, ranging from an inexpensive budget or economy hotel, (Limited or Focused Service Hotels) which may have limited services and amenities, to upscale and luxury hotels (Full Service Hotels) with many services and a wide range of amenities. Market Segmentation: Figure 16.5 on the next page outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveler segment. As illustrated, hotels adapt and diversify depending on the markets they desire and need to drive occupancy levels and generate revenues. Some hotels will specialize in a specific market segment, but in today’s competitive environment, most hotels will target a combination of these segments.

There are several other industry related organizations, such as Forbes and AAA which provide Consumer Ratings for individual hotels … another form of classifying a property. Forbes has traditionally awarded one to five “Stars” and AAA, one to five “Diamond” ratings. Additionally, many social media applications like Trip Advisor offer hotel property ratings to consumers.

Chain Scale: Smith Travel Research (STR) is an organization that provides the lodging industry with global data benchmarking, analytics and marketplace insights. STR classifies the lodging industry into six chain scale segments according to their respective brand Average Daily Rate (ADR). The six segments are defined as Luxury ; Upper Upscale ; Upscale ; Mid-Scale with F&B ( Upper Mid-Scale ); Mid-Scale without F&B ( Mid-Scale ) and Economy . Through STR’s 30—plus years of service to the hospitality industry—they have developed vital benchmarking performance solutions, established market trend transparency and provided data used by the investment community to support hotel development projects. Their core product, the STAR report, provides hotel owners and operators with comparative performance data between their property and a defined set of market competitors and allows you to follow trends in hotel occupancy, average daily rate (ADR) and revenue per available room (RevPar). Developers, investors, industry analysts, hotel brands and management companies all utilize STR data when determine what type of hotel to build and what location would provide maximum opportunity for success.

The type of ownership, brand affiliation and management are also very important variables in the classification of hotels. Owners may manage their own hotels independently but in today’s competitive environment, they would likely sign a Franchise Agreement with a nationally recognized brand as well as a Management Contract with a hotel management company to manage the property. A hotel chain such as Marriott, Hilton, Hyatt or IHG (Intercontinental Hotel Group) is comprised of multiple brands: Marriott, following their recent merger with Starwood currently has 30 different hotel brands, with each name representing a different level of price, service or targeted market segments.

Branding Decision

Selecting a brand affiliation is one of the most significant decisions hotel owners must make. [10] The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet the standards of the new brand. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. For these reasons, owners typically consider several branding options before choosing to operate independently or to adopt a brand affiliation.

Franchise Agreements

Another managerial and ownership structure is franchising. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to become part of a chain of hotels using the franchisor’s hotel brand, image, loyalty program, goodwill, procedures, cost controls, marketing, and reservations systems. [11]

A franchisee becomes part of a network of properties that use a central reservations system with access to electronic distribution channels, regional and national marketing programs, central purchasing, revenue management support, and brand operating standards. A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements.

Selecting a franchise structure may reduce investment risk by enabling the franchisee to associate with an established hotel company. Franchise fees can be substantial, and a franchisee must be willing to adhere to the contractual obligations with the franchisor. [12] Franchise fees typically include an initial fee paid with the franchise application and continuing fees paid during the term of the agreement. These fees are usually a percentage of revenue but can be set at a fixed fee. The total percentage of sales ranges significantly for hotels from 3.3⁠–14.7 percent with a median of 11.8 percent. [13]

Management Contracts

It is common for ownership to utilize a management contract , which is a service offered by a management company to manage a hotel or resort for its owners. Owners have two main options for the structure of a management contract. One is to enter into a management agreement with an independent third-party hotel management company to manage the hotel. There are hundreds of these companies, but some of the large organizations include Aimbridge, Benchmark Hospitality, Crescent Hotels, Interstate Hotels, and White Lodging. A slightly different option is for owners to select a single company to provide both the brand and the expertise to manage the property. Marriott, Hilton, and Hyatt, are companies that provide this second option to owners.

Food and Beverage Services

The food and beverage sector is commonly known to industry professionals by its initials F&B. The F&B sector grew from simple origins to meet the basic needs for food and beverage services to increasing demand for unique experiences and broader options. As the interests of the public became more diverse, so too did the offerings of the F&B sector. The increasing awareness and demand for organic, sustainable, local or craft options as well as special dietary needs in food and beverage continue to challenge this industry. In addition, in order to better attract and serve a diverse array of diners, the F&B industry now consists of a variety of segments. The following is a discussion of each.

Quick-Service Restaurants

Formerly known as fast-food restaurants, examples of  quick-service restaurants , or QSRs, include Chick-fil-A, Subway, and Pizza Hut. This prominent portion of the food sector generally caters to both residents and visitors, and it is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional “fast-food” image and style of service, it is still dominated by both fast food and food fast; in other words, food that is purchased and prepared quickly, and generally consumed quickly as well.

Fast-Casual Restaurants

Fast-Casual restaurants focus on higher quality ingredients than QSR’s and provide made-to-order food in an environment that does not include table service. Customers usually queue and order at a counter. The seating area is more upscale and comfortable. Examples would include Chipotle Mexican Grill, Panera and Jason’s Deli.

Full-Service Restaurants

Full-service restaurants  are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs. [14] The menus offered are varied, but in general reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual. Fine dining restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the average check, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs: $$$ or $$$$.) Examples include the Inn at Little Washington, Ruth’s Chris Steakhouse and Capitol Grille.

Casual restaurants serve moderately-priced to upscale food in a more casual atmosphere. Casual dining comprises a market segment between fast casual establishments and fine dining restaurants. Casual dining restaurants often have a full bar with separate bar staff, a larger beer menu and a limited wine menu. This segment is full of chains such as Chili’s, Outback, Red Robin and Cracker Barrel as well as many independent restaurants in regional or local markets.

Family restaurants  offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such as menu item cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and independent restaurant operators flourish in this sector. Examples of chains in this category would be Golden Corral, Cici’s Pizza and Ponderosa Steakhouse.

Ethnic restaurants  typically reflect the owner’s cultural identity, Vietnamese, Cuban, Thai, etc. The growth and changing nature of this sector reflects the acceptance of various ethnic foods within our communities. Ethnic restaurants generally evolve along two routes: toward remaining authentic to the cuisine of the country of origin or toward larger market acceptance through modifying menu items. [15] Examples would be P.F. Chang’s, Tara Thai or Pei Wei.

Bars, Wineries, and Craft Distilling

The beverage industry continues to evolve as well with a strong focus on local craft beers, wines, cider and distilling. Wineries exist in almost every state, with over 250 in Virginia as of 2015. [16] Wine, bourbon, cider trails and brew pub crawls, etc. are used to generate awareness and create experiences for customers. Wineries often use event space or festivals to take advantage of the beauty of the winery and supplement their revenues.

Institutional Food Service

Institutional f ood s ervice is large scale and often connected to governmental (National Parks) or corporate level organizations. Often run under a predetermined contract, the institutional F&B sector includes:

• Educational institutions
• Prisons and other detention facilities
• Corporate staff cafeterias
• National Park restaurants and concessions
• Cruise ships
• Airports and other transportation terminals and operations

Examples of companies who focus on Institutional Food Service are Compass, Sodexho, Aramark.

Accommodation Food Service

This sector includes hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).  Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel and restaurant chains have seen reliable pairings such as the combination of Shula’s Steakhouse and Marriott Hotels.

Restaurant Industry Profitability and Cost Control

According to the National Restaurant Association, QSRs have the highest pre-tax profit margin at 6.3 percent, while full-service restaurants have a margin of 4.7 percent. There will be significant variances from these percentages at individual locations, even within the same brand. [17]

A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 16.16, above, where food cost and salaries & wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labor, food, and beverage costs, also known as the operator’s primary costs. In addition to these big ticket items, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service restaurants.

Recreation can be defined as the pursuit of leisure activities during one’s spare time [19] and can include vastly different activities such as golfing, sport fishing, and rock climbing. Defining recreation as it pertains to tourism, however, is more challenging.

Let’s start by exploring some recreation-based terms that are common in the tourism industry. Outdoor recreation can be defined as “outdoor activities that take place in a natural setting, as opposed to a highly cultivated or managed landscape such as a playing field or golf course.” [20]   This term is typically applied to outdoor activities in which individuals engage close to their community. When these activities are further away, and people must travel some distance to participate in them, they are often described as “adventure tourism”. According to the United Nations World Tourism Organization (UNWTO), adventure tourism is “a trip that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion.” [21]

Ultimately, categorization is based on a combination of several factors, including manner of engagement in the activity (risk exposure, experience requirement, group or solo activity), the distance travelled to access the activity, and the type of environment (proximity to nature, level of challenge involved) in which the activity occurs.

A 2013 adventure tourism market study discovered that people who travel for adventure experiences tend to be well-educated, with 48 percent holding a four-year degree or higher credential. They value natural beauty and rank this factor highest when choosing a destination. The most cited reasons for their travel are “relaxation, exploring new places, time with family, and learning about different cultures.” [22]

Globally, it is estimated that the continents of Europe, North America, and South America account for 70 percent of adventure tourism, or US$263 billion in adventure travel spending. [23]

Entertainment

Entertainment is a very broad category which overlaps with many of the areas discussed elsewhere in this chapter, like hotels and accommodation. Two major types of entertainment that we’ll discuss here are gaming and theme parks.

Gaming has grown significantly in the United States and globally. The number of casinos in the United States has been growing since 2010, and in 2013, there were over 500 commercial casinos, as shown in Figure 16.16. Casinos are found all over the United States in major cities, riverboats, and on Native American lands. However, US casino revenue has been relatively flat, while global gaming revenues have been on the increase, largely due to Asian market growth. Most casinos involve other facets of the Hospitality industry such as lodging, F&B, golf, entertainment, spas, etc., but they also have the added challenges of casino operations.

Theme Parks

Theme parks have a long history dating back to the 1500’s in Europe, and have evolved ever since. Today, it is hard not to compare any amusement park destination to Disneyland and Disney World. Opened in 1955 in sunny California, Disneyland set the standard for theme parks. Theme parks outside of California and Florida are often highly seasonable operations challenged with significant staffing and training requirements each year.

Convention and Event Management

A convention is a large meeting of people with similar interests who meet for a period of at least a few days to discuss their field. An  event  is a gathering at a given place and time, usually of some importance, often celebrating or commemorating a special occasion.

Both conventions and events can be extremely complex projects, which is why, over time, the role of meeting planners has taken on greater importance. The development of education, training programs, and professional designations such as CMPs (Certified Meeting Planners), CSEP (Certified Special Events Professional), and CMM (Certificate in Meeting Management) has led to increased credibility in this business and demonstrates the importance of the sector to the economy.

Meeting planners may be independent contractors hired to facilitate the planning process, work directly for the company full time to coordinate their meeting, or work for hotels, conference centers and event venues directly.

• The various tasks involved in meeting and event planning include:
• Conceptualizing/theming
• Site inspection & selection
• Logistics and planning
• Human resource management
• Marketing and public relations
• Budgeting and financial management
• Sponsorship procurement
• Management and evaluation

Event Categories

Mega-events.

A m ega-event is a large scale, highly prestigious event such as the Olympic Games, the FIFA World Cup, or a global economic summit. These events typically gain tremendous media coverage and have major economic impacts on the host location, both positive and negative. High levels of tourism (1 million visitors) associated with a mega-event brings revenue, but the revenue may be outweighed by substantial capital and social costs incurred by the host. The events are often awarded to host destinations through a bidding process and gain tremendous media coverage.

Special Events

A special event is a one-time or infrequent specific ritual, presentation, performance, or celebration. Special events are planned and created to mark a special occasion, such as a presidential inauguration or the Queen of England’s 90 th birthday. Like mega-events, there may be significant media coverage and economic impact for the host city or destination.

Hallmark Events

A hallmark event is a unique event that is often identified with the location where it is held, like Carnival in Rio de Janeiro or Oktoberfest in Munich. Hallmark events contribute significant economic benefits and even can create a competitive advantage for the host city or destination that attracts tourists.

A festival is a themed public celebration that conveys, through a kaleidoscope of activities, certain meaning to participants and spectators. Festivals are often celebrations of community or culture and feature music, dance, or dramatic performances. Examples include Lollapalooza, the Cannes Film Festival, and Junkanoo in the Bahamas.

Local Community Events

A local community event is generated by and for locals; although it may attract tourists, its main audience is the local community. The community may experience measurable economic impacts, as might happen at The Steppin’ Out Street Fair in Blacksburg (think hotel stays and eating out). Fundraisers and community picnics are also examples in this category.

Meetings and Conventions

The tourism industry also has a long history of creating, hosting, and promoting meetings and conventions that draw business travelers. In fact, Convention and Visitor Bureau’s (CVB’s) work hard to attract these meetings and conventions to their city to drive economic benefit for hotels, restaurants, entertainment venues, etc.

There are several types of such events

Conventions  generally have very large attendance, and are held on a regular schedule but in different locations. They also often require a bidding process.  Political conventions are one such example.

Association M eetings or C onferences are held regionally and nationally for hundreds of associations or events focused on specific themes. Examples would be the National Restaurant Association Annual Convention, ComicCon, or the National Auto Show.

Corporate M eetings will vary significantly in size and purpose and include regional or national sales meetings, shareholder meetings, training sessions, or celebrations. The location will vary depending on the nature of the meeting. They may be held at an airport property, a traditional corporate meeting facility or even an upscale resort.

Trade S hows and T rade F airs  can be stand-alone events, or adjoin a convention or conference.

S eminars , W orkshops , and R etreats are examples of smaller-scale events.

As meeting planners have become more creative, meeting and convention delegates have been more demanding about meeting sites. No longer are hotel meeting rooms and convention centers the only type of location used; non-traditional venues have adapted and become competitive in offering services for meeting planners. These include architectural spaces such as airplane hangars, warehouses, or rooftops and experiential venues such as aquariums, museums, and galleries. [24]

Transportation and travel services are another large element of the tourism industry. This area includes cruise ships, airlines, rail, car rentals, and even ride sharing such as Uber and Lyft. Each of these segments is impacted significantly by fuel costs, safety issues, load factors and government regulation.

If you’ve ever been on a cruise, you are in good company. According to CLIA (Cruise Lines International Association), 23 million passengers were expected to go on a cruise worldwide on 62 member lines in 2015. [25] The industry employs over 900,000 people. [26]

Over 55 percent of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA are: [27]

• The Caribbean (36 percent)
• The Mediterranean (20 percent)
• Northern Europe (11 percent)
• Australia/New Zealand (6 percent)
• Alaska (6 percent)
• Asia (5 percent)
• South America (3 percent)

The t ravel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), the travel services industry group includes “establishments primarily engaged in travel arrangement and reservation services. Examples … are tourist and travel agencies; travel tour operators and wholesale operators; convention and visitors’ bureaus; airline, bus, railroad and steamship ticket offices; sports and theatrical ticket offices; and airline, hotel and restaurant reservation offices.” [28] Tourism services support industry development and the delivery of guest experiences.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveler (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travelers. The agency can further function as a broker between the traveler and hotels, car rentals, and tour companies. [29] Travel agencies can be small and privately owned or part of a larger entity.

Online Travel Agencies (OTAs)

Online travel agents (OTAs) are companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.com, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion [30] and almost triple that figure, upward of $278 billion, in 2013. [31] Over 40 percent of US travelers booked flights online in 2014. [32]

Tour Operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveler. These packages can also be sold through retail outlets or travel agencies. [33] Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveler could by purchasing individually.

Destination Marketing Organizations (DMOs)

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” [34] .

Country Clubs

Country c lubs are another part of the Hospitality industry with a very different service strategy focusing on serving members who will develop relationships with the staff compared to a more transactional service interaction in lodging, restaurants or airlines.

Country clubs do not focus as strongly on profit as they do on maximizing member satisfaction, retention and growth while maintaining an attractive fee structure. Country (or city) clubs, will typically have restaurant and bar operations, catered events and other amenities such as golf, tennis, pool, fitness facilities, etc. Depending on the type of club, family and youth events are important to maintain and grow membership.

Strong customer service, culinary, event management and general management skills are necessary to be successful in clubs.

Chapter Video

As in any other fast-moving industry, the landscape in Hospitality and Tourism is always changing. This video explores 10 of the more important current trends impacting the industry.

(Copyrighted material)

Key Takeaways

• The Tourism industry is the largest industry in the world with significant benefit and costs to a region. The global competition for the tourism dollar is significant within the US and between countries.
• Hotels vary significantly in size, quality, purpose, chain affiliation, and ownership. The complexity of the operation and leadership vary as well.
• Food and Beverage is made up of a wide variety of restaurant types from QSR, Fast Casual, Fine Dining and Ethnic. Institutional food service in business , hospitals, education, parks and concessions are a significant part of the Food and Beverage industry.
• The evolution of tastes and consumer expectations in food and beverage continue to provide opportunity and challenges in the industry for ethnic sustainable, organic, local, craft, and other unique experiences.

Portions of this chapter were adapted from Westcott, Morgan (Ed)  Introduction to Tourism and Hospitality in BC.   CC BY 4.0   https://opentextbc.ca/introtourism . Available for free at: http://open.bccampus.ca

Image Credits: Chapter 16

Figure 16.1: Siebe Warmoeskerken (2018). Unsplash. Public Domain. Retrieved from: https://unsplash.com/photos/mxNrtFzOd-I

Figure 16.2: Data retrieved from: https://wttc.org/Research/Economic-Impact ; World map retrieved from: Max Naylor (2006). “BlankMap-World-Continents-Coloured.” Wikimedia Commons. CC BY-SA 3.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:BlankMap-World-Continents-Coloured.PNG

Figure 16.3: Rodhullandemu (2012). “The Pineapple Hotel, Park Road, Liverpool.” CC BY-SA 3.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Pineapple,_Park_Road,_Liverpool.jpg

Figure 16.6: Stephen J. Skripak. “Example of a Hotel Market Segmentation by STR’s Chain Scale.” CC BY 4.0 .

Figure 16.7: Christina Hsu (2009). “San Diego City and Bay at Night.” Flickr. CC BY-NC-SA 2.0 . Retrieved from: https://flic.kr/p/6KZ5Cv

Figure 16.8: Anastasia Cortes (2016). “The Inn at Virginia Tech.” Public Domain. Provided by the author.

Figure 16.9: Dale Cruse (2014). “New Zealand langoustines at Troquet.” Flickr. CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/dalecruse/8551895022/

Figure 16.10: Imzadi1979 (2012). “An Axample of a Typical American Logo Sign.” Wikipedia. Public Domain. Retrieved from: https://en.wikipedia.org/wiki/Logo_sign#/media/File:Logo_Sign.svg

Figure 16.11: Mike Mozart (2014). “Panera Bread.” Wikimedia Commons. CC BY-SA 2.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Panera_Bread_(13883443466).jpg

Figure 16.12: Michael Rys. “Le Procope.” Wikimedia Commons. CC BY-NC-SA 2.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Inside_Le_Procope.jpg#mw-jump-to-license

Figure 16.13: Stephen J. Skripak. “The Restaurant Industry Career Path.” CC BY 4.0 .

Figure 16.14: Table adapted from National Restaurant Association (2014). 2013 -2014 Restaurant Operations Report .

Figure 16.15: JohnSM (2013). “Rafting in Turkey.” Pixabay. Public domain. Retrieved from: https://pixabay.com/en/raftingturkey-travel-1125213/

Figure 16.16: UNLV Center for Gaming Research. “US and Global Casino Revenues (2005-2019).” (2005-2015) Data Retrieved from: https://gaming.unlv.edu/reports/national_annual_revenues.pdf ; (2016) Data Retrieved from: https://web.archive.org/web/20170301070205/http://gaming.unlv.edu/reports/national_monthly.pdf ; 2017 Data Retrieved from: https://www.americangaming.org/resources/state-of-the-states-2018-the-aga-survey-of-the-commercial-casino-industry/ ; 2018 Data Retrieved from: https://web.archive.org/web/20190201140714/https://gaming.unlv.edu/reports/national_monthly.pdf ; 2019 Data Retrieved from: https://abcnews.go.com/Entertainment/wireStory/us-commercial-casinos-won-436-billion-2019-37-71069042; Global Revenue Data Retrieved from: https://www.statista.com/statistics/271577/global-casino-gaming-market-revenue/ ; Number of Commercial Casinos Data Retrieved from: https://www.statista.com/statistics/187972/number-of-us-commercial-casinos-since-2005/

Figure 16.17: Josh Hallett (2009). “The ‘Big Bang’ at Wishes – Magic Kingdom – Walt Disney World.” Flickr. CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/hyku/3830182777

Figure 16.18: Peter23 (2011). “Beijing National Stadium.” Wikimedia Commons. CC BY-SA 3.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Beijing_national_stadium.jpg

Figure 16.19: Skeeze (2014). “Mardi Gras in New Orleans.” Pixabay. Public domain. Retrieved from: https://pixabay.com/photos/mardi-gras-new-orleans-festival-1176483/

Figure 16.20: Peter Hansen (2017). “Cruise Ship Photo.” Unsplash. Public Domain. Retrieved from: https://unsplash.com/photos/MeGmdPNe36w

Figure 16.21: Dan Perry (2006). “Riviera Country Club in Pacific Palisades, California.” Wikimedia Commons. CC BY-NC-SA 2.0 . Retrieved from: https://commons.wikimedia.org/wiki/File:Riviera_Country_Club,_Golf_Course_in_Pacific_Palisades,_California_(168828797).jpg

Video Credits: Chapter 16

Sisyanti, Ling Ling, Wasim Amsal, Ella Qiu, and Rebecca Catherine Stephany (2015, February 6). “10 trends in Hospitality and Tourism Industry.” YouTube. Retrieved from: https://www.youtube.com/watch?v=SJ8Momwv7Qk 

• World Tourism Organization UNWTO (2015). “Why Tourism?” Retrieved from: http://www2.unwto.org/content/why-tourism ↵
• United Nations Statistics Division (2010, December). “Tourism as an Internationally Traded Service and Beyond.” Newsletter of the Interagency Task Force on Statistics of International Trade in Services. No. 6. p. 1. Retrieved from: http://unstats.un.org/unsd/tradeserv/tfsits/newsletter/TFSITS_newsletter_6.pdf ↵
• World Tourism Organization UNWTO (2015). “Exports from International Tourism Rise 4% in 2015.” Retrieved from: http://media.unwto.org/press-release/2016-05-03/exports-international-tourism-rise-4-2015 ↵
• Association of Bhutanese Tour Operators (2010). “UNWTO Tourism Vision 2020 Forecast Released.” Retrieved from: http://www.abto.org.bt/2010/06/unwto-tourism-2020-vision-forecast-released/ ↵
• United Nations Environment Programme (2016). “Negative Socio-Cultural Impacts from Tourism.” Retrieved from: http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/FactsandFiguresaboutTourism/ImpactsofTourism/Socio-CulturalImpacts/NegativeSocio-CulturalImpactsFromTourism/tabid/78781/Default.aspx ↵
• United Nations Environment Programme (2016). “Tourism’s Three Main Impact Areas.” Retrieved from: http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/TheTourismandEnvironmentProgramme/FactsandFiguresaboutTourism/ImpactsofTourism/EnvironmentalImpacts/TourismsThreeMainImpactAreas/tabid/78776/Default.aspx ↵
• Discover Hospitality (2015). “What is Hospitality?” Retrieved from: https://web.archive.org/web/20150814071021/http://discoverhospitality.com.au/what-is-hospitality ↵
• L. P. Coyle (1982). “Pineapple” in World Encyclopedia of Food . New York: Facts on File. p. 517. ↵
• Colonial Williamsburg Foundation (2016). “The Pineapple in Colonial Williamsburg.” Retrieved from: http://www.history.org/almanack/life/christmas/dec_pineapple.cfm ↵
•   C. Crandell, K. Dickinson, and G. I. Kanter (2004). "Negotiating the hotel management contract" In Hotel Asset Management: Principles & Practices . East Lansing, MI: University of Denver and American Hotel & Lodging Educational Institute. ↵
• S. Rushmore (2005). “What Does a Hotel Franchise Cost?” Canadian Lodging Outlook. Retrieved from: www.hotel-online.com/News/PR2005_4th/Oct05_FranchiseCost.html ↵
• Ibid.; N. Migdal (n.d.). “Franchise Agreements vs. Management Agreements: Which One Do I Choose?” Hotel Business Review. Retrieved from: hotelexecutive.com/business_review/2101/test-franchise-agreements-vs-management-agreements-which-one-do-i-choose ↵
• Stephen Rushmore Jr., Erin S. Bagley (2014). “2014 United States Hotel Franchise Fee Guide.” HVS. Retrieved from: http://www.hvs.com/article/7097/2014-united-states-hotel-franchise-fee-guide/ ↵
• H. G. Parsa, K. R. Lord, S. Putrevu, and J. Kreeger (2015). “Corporate Social and Environmental Responsibility in Services; Will Consumers Pay for It?” Journal of Retailing and Consumer Services. Vol. 22. pp. 250-260. ↵
• A. H. Mak, M. Lumbers, A. Eves, and R. C. Change (2012). “Factors Influencing Tourist Food Consumption.” International Journal of Hospitality Management. Vol. 31. No. 3. pp. 928-936. ↵
• Virginia Wine Association (2016). “Virginia Wineries.” Virginia Wines. Retrieved from: https://www.virginiawine.org/wineries/ ↵
• American Restaurant Association and Deloitte Development LLC (2013). 2013-2014 Restaurant Operations Report . Washington, D.C.: National Restaurant Association. p. 7. ↵
• Table adapted from National Restaurant Association (2014). 2013-2014 Restaurant Operations Report . Washington, D.C.: National Restaurant Association. ↵
• J. Tribe (2011). The Economics of Recreation, Leisure, and Tourism , 4th ed. Oxford, England: Elsevier. ↵
• Tourism BC (2013). “2009/2010 Outdoor Recreation Study.” Destination British Columbia. Retrieved from: http://www.destinationbc.ca/getattachment/Research/Research-by-Activity/All-Research-by-Activity/Outdoor-Recreation-Study-2009-2010,-January-2013/Outdoor-Recreation-for-Distribution-14Jan13-FINAL-DRAFT-(2).pdf.aspx ↵
• United Nations World Tourism Organization (2014). Global Report on Adventure Tourism . UNWTO and the Adventure Tourism Trade Association. p. 12. Retrieved from: http://cf.cdn.unwto.org/sites/all/files/pdf/final_1global_report_on_adventure_tourism.pdf ↵
• Ibid., p. 15. ↵
• George Washington University (2013). “Adventure Tourism Market Study 2013.” The Adventure Travel Trade Association. p. 2. Retrieved from: http://files.adventuretravel.biz/docs/research/adventure-tourism-market-study-2013-web.pdf ↵
• K. Colston (2014, April 24). "Non-Traditional Event Venues – Endless Entertainment." Retrieved from: http://helloendless.com/non-traditional-event-venues/ ↵
• CLIA (2016). CLIA 2015 Annual Report: One Voice: Advancing Our Industry Together . Cruise Lines International Association. p. 10. Retrieved from: http://www.cruising.org/docs/default-source/market-research/clia_2015_annualreport_web.pdf?sfvrsn=0 ↵
• Ibid. ↵
• CLIA (2015). CLIA 2015 Cruise Industry Outlook: Cruising to New Horizons and Offering Travelers More . Cruise Lines International Association. p. 28. Retrieved from: http://www.cruising.org/docs/default-source/research/2015-cruise-industry-outlook.pdf ↵
• Government of Canada (2014). “NAICS 2007: 5615 Travel Arrangement and Reservation Services.” Statistics Canada. Retrieved from: http://stds.statcan.gc.ca/naics-scian/2007/cs-rc-eng.asp?criteria=5615 ↵
• C. Goeldner and B. Ritchie (2003). Tourism: Principles, Practices, Philosophies , 9th ed. Hoboken, New Jersey: John Wiley & Sons, Inc. ↵
• R. Carey, K. Kang, and M. Zea (2012). "The Trouble With Travel Distribution." McKinsey & Company. Retrieved from: www.mckinsey.com/insights/travel_transportation/the_trouble_with_travel_distribution ↵
• The Economist (2014). “Sun, Sea and Surfing: The Market for Booking Travel Online Is Rapidly Consolidating.” Economist. Retrieved from http://www.economist.com/news/business/21604598-market-booking-travel-online-rapidly-consolidating-sun-sea-and-surfing ↵
• The Trefis Team (2015). “An Update on the Online Travel Agencies.” Forbes. Retrieved from: http://www.forbes.com/sites/greatspeculations/2015/09/30/an-update-on-the-online-travel-agencies/#60c1ed4d3e0b ↵
• The Destination Marketing Association International (2014). “The value of DMOs.” Retrieved from: http://www.destinationmarketing.org/value-dmos ↵

Chapter 16 Hospitality and Tourism Copyright © 2020 by Stephen J. Skripak and Ron Poff is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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21 reasons why tourism is important – the importance of tourism

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Tourism is important, more important than most people realise in fact!

The importance of tourism is demonstrated throughout the world. From the economic advantages that tourism brings to host communities to the enjoyment that tourism brings to the tourists themselves, there is no disputing the value of this industry.

The importance of tourism can be viewed from two perspectives: the tourism industry and the tourist. In this article I will explain how both the industry and the tourist benefit from the tourism industry and why it is so important on a global scale.

What is the importance of tourism?

Enhanced quality of life, ability to broaden way of thinking, educational value, ability to ‘escape’, rest and relaxation, enhanced wellbeing, who are tourism industry stakeholders, foreign exchange earnings, contribution to government revenues, employment generation, contribution to local economies, overall economy boost, preserving local culture, strengthening communities, provision of social services, commercialisation of culture and art, revitalisation of culture and art, preservation of heritage, empowering communities, protecting nature, the importance of tourism: political gains, why tourism is important: to conclude, the importance of tourism: further reading.

When many people think about the tourism industry they visualise only the front-line workers- the Holiday Representative, the Waiter, the Diving Instructor. But in reality, the tourism industry stretches much, much further than this.

As demonstrated in the infographic below, tourism is important in many different ways. The tourism industry is closely interconnected with a number of global industries and sectors ranging from trade to ecological conservation.

Why tourism is important to the tourist

When we discuss the importance of tourism it is often somewhat one-sided, taking into consideration predominantly those working in the industry and their connections.

However, the tourist is just as important, as without them there would be no tourism!

Below are just a few examples of the importance of tourism to the tourist:

Taking a holiday can greatly benefit a person’s quality of life. While different people have very different ideas of what makes a good holiday (there are more than 150 types of tourism after all!), a holiday does have the potential to enhance quality of life.

Travel is known to help broaden a person’s way of thinking. Travel introduces you to new experiences, new cultures and new ways of life.

Many people claim thatchy ‘find themselves’ while travelling.

One reason why tourism is important is education.The importance of tourism can be attributed to the educational value that it provides. Travellers and tourists can learn many things while undertaking a tourist experience, from tasting authentic local dishes to learning about the exotic animals that they may encounter.

Tourism provides the opportunity for escapism. Escapism can be good for the mind. It can help you to relax, which in turn often helps you to be more productive in the workplace and in every day life.

This is another way that the importance of tourism is demonstrated.

Rest and relaxation is very important. Taking time out for yourself helps you to be a happier, healthier person.

Having the opportunity for rest and relaxation in turn helps to enhance wellbeing.

Why tourism is important to stakeholders

There are many reasons why tourism is important to the people involved. There are many people who work either directly or indirectly with the tourism industry and who are therefore described as stakeholders. You can read more about tourism stakeholders and why they are important in this post- Stakeholders in tourism: Who are they and why do they matter?

The benefits of tourism are largely related to said stakeholders in some way or another. Below are some examples of how stakeholders benefit from tourism, organised by economic, social, environmental and political gains; demonstrating the importance of tourism.

The importance of tourism: Economic gains

Perhaps the most cited reason in reference to the importance of tourism is its economic value. Tourism can help economies to bring in money in a number of different ways. Below I have provided some examples of the positive economic impacts of tourism .

The importance of tourism is demonstrated through foreign exchange earnings. 

Tourism expenditures generate income to the host economy. The money that the country makes from tourism can then be reinvested in the economy. How a destination manages their finances differs around the world; some destinations may spend this money on growing their tourism industry further, some may spend this money on public services such as education or healthcare and some destinations suffer extreme corruption so nobody really knows where the money ends up! 

Some currencies are worth more than others and so some countries will target tourists from particular areas. Currencies that are strong are generally the most desirable currencies. This typically includes the British Pound, American, Australian and Singapore Dollar and the Euro . 

Tourism is one of the top five export categories for as many as 83% of countries and is a main source of foreign exchange earnings for at least 38% of countries.

The importance of tourism is also demonstrated through the money that is raised and contributed to government revenues. Tourism can help to raise money that it then invested elsewhere by the Government. There are two main ways that this money is accumulated. 

Direct contributions  are generated by taxes on incomes from tourism employment and tourism businesses and things such as departure taxes. 

According to the World Tourism Organisation , the direct contribution of Travel & Tourism to GDP in 2018 was $2,750.7billion (3.2% of GDP). This is forecast to rise by 3.6% to $2,849.2billion in 2019.

Indirect contributions  come from goods and services supplied to tourists which are not directly related to the tourism industry. 

There is also the income that is generated through  induced contributions . This accounts for money spent by the people who are employed in the tourism industry. This might include costs for housing, food, clothing and leisure Activities amongst others. This will all contribute to an increase in economic activity in the area where tourism is being developed. 

The importance of tourism can be demonstrated through employment generation.

The rapid expansion of international tourism has led to significant employment creation. From hotel managers to theme park operatives to cleaners, tourism creates many employment opportunities. Tourism supports some 7% of the world’s workers. 

There are two types of employment in the tourism industry: direct and indirect. 

Direct employment  includes jobs that are immediately associated with the tourism industry. This might include hotel staff, restaurant staff or taxi drivers, to name a few. 

Indirect employment includes jobs which are not technically based in the tourism industry, but are related to the tourism industry.

It is because of these indirect relationships, that it is very difficult to accurately measure the precise economic value of tourism, and some suggest that the actual economic benefits of tourism may be as high as double that of the recorded figures!

The importance of tourism can be further seen through the contributions to local economies.

All of the money raised, whether through formal or informal means, has the potential to contribute to the local economy. 

If  sustainable tourism  is demonstrated, money will be directed to areas that will benefit the local community most. There may be pro-poor tourism initiatives (tourism which is intended to help the poor) or  volunteer tourism  projects. The government may reinvest money towards public services and money earned by tourism employees will be spent in the local community. This is known as the multiplier effect. 

Tourism boosts the economy exponentially. This is partly because of the aforementioned jobs that tourism creates, but also because of the temporary addition to the consumer population that occurs when someone travels to a new place. Just think: when you travel, you’re spending money. You’re paying to stay in a hotel or hostel in a certain area – then you’re eating in local restaurants, using local public transport, buying souvenirs and ice cream and new flip flops. As a tourist, you are contributing to the global economy every time you book and take a trip.

For some towns, cities and even whole countries, the importance of tourism is greater than for other. In some cases, it is the main source of income. For example, according to the World Travel and Tourism Council, tourism accounts for almost 40% of the Maldives’ total GDP. In comparison, it’s less than 4% in the UK and even lower in the US! In the Seychelles the number is just over 26% while in the British Virgin Islands it is over 35% – so tourism is vastly important in these nations.

The importance of tourism: Social gains

The importance of tourism is not only recognised through economic factors, but there are also many positive social impacts of tourism that play an important part. Below I will outline some of the social gains from tourism.

It is the local culture that the tourists are often coming to visit and this is another way to demonstrate the importance of tourism.

Tourists visit Beijing to learn more about the Chinese Dynasties. Tourists visit Thailand to taste authentic Thai food. Tourists travel to Brazil to go to the Rio Carnival, to mention a few…

Many destinations will make a conserved effort to preserve and protect the local culture. This often contributes to the conservation and  sustainable management  of natural resources, the protection of local heritage, and a renaissance of indigenous cultures, cultural arts and crafts. 

The importance of tourism can also be demonstrated through the strengthening of communities.

Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest.

The jobs created by tourism can also be a great boost for the local community. Aside from the  economic impacts  created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. 

Local people can also increase their influence on tourism development, as well as improve their job and earnings prospects, through tourism-related professional training and development of business and organisational skills.

The importance of tourism is shown through the provision of social services in the host community.

The tourism industry requires many facilities/ infrastructure to meet the needs of the tourist. This often means that many developments in an area as a result of tourism will be available for use by the locals also. 

Local people often gained new roads, new sewage systems, new playgrounds, bus services etc as a result of tourism. This can provide a great boost to their quality of life and is a great example of a positive social impact of tourism. 

Tourism can see rise to many commercial business, which can be a positive social impact of tourism. This helps to enhance the community spirit as people tend to have more disposable income as a result. 

These businesses may also promote the local cultures and arts. Museums, shows and galleries are fantastic way to showcase the local customs and traditions of a destination. This can help to promote/ preserve local traditions.

Some destinations will encourage local cultures and arts to be revitalised. This may be in the form of museum exhibitions, in the way that restaurants and shops are decorated and in the entertainment on offer, for example. 

This may help promote traditions that may have become distant. 

Another reason for the importance of tourism is the preservation of heritage. Many tourists will visit the destination especially to see its local heritage. It is for this reason that many destinations will make every effort to preserve its heritage. 

This could include putting restrictions in place or limiting tourist numbers, if necessary. This is often an example of careful  tourism planning  and sustainable tourism management. 

Tourism can, if managed well, empower communities. While it is important to consider the authenticity in tourism and take some things with a pinch of salt, know that tourism can empower communities.

Small villages in far off lands are able to profit from selling their handmade goods. This, in turn, puts food on the table. This leads to healthier families and more productivity and a happier population .

The importance of tourism: Environmental gains

Whilst most media coverage involving tourism and the environment tends to be negative, there are some positives that can come from it: demonstrating the importance of tourism once again.

Some people think that tourism is what kills nature. And while this could so easily be true, it is important to note that the tourism industry is and always has been a big voice when it comes to conservation and the protection of animals and nature. Tourism organisations and travel operators often run (and donate to) fundraisers. 

As well as this, visitors to certain areas can take part in activities that aim to sustain the local scenery. It’s something a bit different, too! You and your family can go on a beach clean up walk in Spain or do something similar in the UAE . There are a lot of ways in which tourism actually helps the environment, rather than hindering it!

Lastly, there is something to be said for the political gains that can be achieved through tourism.

The tourism industry can yield promising opportunities for international collaborations, partnerships and agreements, for example within the EU. This can have positive political impacts on the host country as well as the countries who choose to work with them.

Tourism is a remarkably important industry. As you can see, the tourism industry does not stand alone- it is closely interrelated with many other parts of society. Not only do entire countries often rely on the importance of tourism, but so do individual members of host communities and tourists.

If you are studying travel and tourism and are interested in learning more about the importance of tourism, I recommend you take a look at the following texts:

• An Introduction to Tourism : a comprehensive and authoritative introduction to all facets of tourism including: the history of tourism; factors influencing the tourism industry; tourism in developing countries; sustainable tourism; forecasting future trends.
• The Business of Tourism Management : an introduction to key aspects of tourism, and to the practice of managing a tourism business.
• Tourism Management: An Introduction : gives its reader a strong understanding of the dimensions of tourism, the industries of which it is comprised, the issues that affect its success, and the management of its impact on destination economies, environments and communities.

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• Hospitality Industry

Why Hospitality is important as a skill and not only as an industry

August 31, 2023 •

6 min reading

Well on the way to recovery post-pandemic, the global hospitality industry continues to grow, change, and diversify every year. In fact, hospitality remains one of the world's fastest-growing employment sectors, and factors such as increasing disposable income, rising demand for more diverse travel and tourism activities, and the affordability of air travel contribute to this ongoing growth.

According to the Hospitality Global Market Report, the travel and tourism industry saw a growth of 15.1% in 2022 . One of the sectors with the best economic performance was the hotels. In 2022, hotels generated 595,500 million more in profits than in 2021.

This growth has generated more competition. To stand out, many CEOs are focusing on managing hospitality as a science: they're seeking new technologies, evaluating new digitization opportunities, and rigorously analyzing metrics.

While all of this is helpful, leaders can't deviate from the most important thing: quality customer service. And for good service, hospitality should be considered a skill rather than a competitive business sector.

Indeed, hospitality as a skill can be extrapolated to any other sector to thereby promote the highest standards of quality in customer service and human interactions in general.

Why is Hospitality a skill?

Hospitality is regarded as a skill due to its reliance on a distinct range of abilities and attributes that are vital in delivering exceptional customer service.

In truth, the foundation of hospitality is customer service. And customer service is a powerful skill.

This focus on the customer, which characterizes hospitality as a skill, can be transferred to other professional, business fields and even to life in general.

For example, senior recruiter Larry Chesner expresses in this article how his previous experience working in hotels helped him attract top talent. According to Chesner, developing hospitality as a skill enabled him to be a good listener, humble, and provide exceptional service.

These are the qualities and approaches of the hospitality skill set:

I. Service attitude

Hospitality requires the ability to understand and meet the needs of customers or guests. This involves:

• Effective communication;
• Active listening;
• Anticipate and exceed expectations.

II. Soft and interpersonal skills

Hospitality professionals must have strong interpersonal skills to build rapport, establish positive relationships, and effectively interact with people from diverse backgrounds.

This includes being friendly, approachable, and having good conflict-resolution and problem-solving abilities. They are qualities that can naturally be extrapolated to any aspect of life.

III. Adaptability

Adaptability is a highly important skill in today's world, considering that we live in a constantly changing environment.

In the hospitality industry, this skill takes on special relevance. The hospitality industry often requires professionals to adapt to different situations and handle unexpected challenges.

Being flexible, quick-thinking, and able to work well under pressure are important skills in providing seamless service.

IV. Attention to detail

Attention to detail is crucial in hospitality to ensure that all aspects of a customer's experience are carefully considered and executed flawlessly. This includes maintaining cleanliness, providing personalized service, and paying attention to the small details that contribute to a positive experience.

In the customer journey, any small negative detail can outweigh the experiences that were positive.

A negative experience resonates in the customer's mind, and they are not likely to return to the hotel, restaurant, or any other business, that has displeased them. This is true for any business that provides a service or product to people, including fashion brands, supermarkets, IT and retail.

V. Professionalism

Hospitality professionals are required to exhibit professionalism and uphold a strong sense of integrity, ethics, and confidentiality. They are expected to showcase dependability, punctuality, and a dedication to providing outstanding service.

VI. Cultural awareness

With the global nature of hospitality, having cultural awareness and sensitivity is crucial. Understanding and respecting diverse customs, traditions, and preferences of guests from various cultures contribute to providing a welcoming and inclusive environment.

Considering the dizzying globalization that the current world is experiencing, this virtue of hospitality as a skill is needed in many other industries. Cultural awareness is important, for example, in marketing, social media, e-commerce, and many other business fields with global reach.

VII. Human-centricity & service excellence

Human-centricity refers to an approach that places the needs, preferences, and well-being of individuals at the center of all activities and decision-making processes. And this enables service excellence. The customer centric approach is the essence of hospitality, which has the main goal of building and ensuring satisfying experiences.

The role of leadership in cultivating Hospitality as a skill

To value hospitality as a skill and reflect this in customer service, the change must start with leadership. Leaders need to embrace this new paradigm and understand the human perspective of hospitality.

A good way to work on the paradigm shift is through training. For example, EHL offers graduate-level hospitality programs , executive education , and professional development online courses that approach the hospitality industry from a human and wellbeing perspective.

These programs allow leaders from other industries to improve their hospitality skills and drive improvements in their sectors. In the case of hospitality business managers, it allows them to reflect on the human value of their industry and return to the essence of customer service as a priority.

A solid training program also encompasses elements tied to a leader's sense of humanity. An effective leader cultivates their emotions, mind, and thoughts to foster a human mindset, which they then instill in their team.

To assist you in solidifying yourself as a leader with a wellbeing mindset, a good academic program will address aspects such as:

Usage of practical tools : There exist tools and technologies aimed at enhancing wellbeing within companies. Termed as "wellness tech", it involves the utilization of technology to improve living conditions for an organization's employees.

Adopting an individualized approach : It is crucial for the leader to possess the ability to analyze and comprehend the diverse members of their team. This proficiency will enable them to transform individual experiences within the company and devise effective career plans tailored to each employee.

Employee training

In addition to leadership, employees and professionals must also understand hospitality as a skill. Many of them will be the ones who interact directly with customers on a daily basis.

A good training program on hospitality and associated soft skills should follow these criteria:

Relevance and alignment : Training content should be relevant, up-to-date, and tailored to address the specific challenges and goals of the organization. The program should explain how to provide excellent customer service considering the type of customers and the type of service.

Engagement and interactivity : Effective training programs engage employees through interactive and participatory learning methods. Incorporating activities such as group discussions, hands-on exercises, case studies, role-plays, and simulations can enhance employee engagement and knowledge retention.

Ongoing and continuous: A good hospitality training program recognizes that learning is a continuous process and not a one-time event. It should provide ongoing support and resources to employees, including follow-up sessions, refresher courses, access to online learning platforms, and mentoring or coaching opportunities.

Hospitality is synonymous with great customer service! It's a powerful skill that your team should always apply and keep in mind.

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Tourism’s Importance for Growth Highlighted in World Economic Outlook Report

• All Regions
• 10 Nov 2023

Tourism has again been identified as a key driver of economic recovery and growth in a new report by the International Monetary Fund (IMF). With UNWTO data pointing to a return to 95% of pre-pandemic tourist numbers by the end of the year in the best case scenario, the IMF report outlines the positive impact the sector’s rapid recovery will have on certain economies worldwide.

According to the World Economic Outlook (WEO) Report , the global economy will grow an estimated 3.0% in 2023 and 2.9% in 2024. While this is higher than previous forecasts, it is nevertheless below the 3.5% rate of growth recorded in 2022, pointing to the continued impacts of the pandemic and Russia's invasion of Ukraine, and from the cost-of-living crisis.

Tourism key sector for growth

The WEO report analyses economic growth in every global region, connecting performance with key sectors, including tourism. Notably, those economies with "large travel and tourism sectors" show strong economic resilience and robust levels of economic activity. More specifically, countries where tourism represents a high percentage of GDP   have recorded faster recovery from the impacts of the pandemic in comparison to economies where tourism is not a significant sector.

As the report Foreword notes: "Strong demand for services has supported service-oriented economies—including important tourism destinations such as France and Spain".

Looking Ahead

The latest outlook from the IMF comes on the back of UNWTO's most recent analysis of the prospects for tourism, at the global and regional levels. Pending the release of the November 2023 World Tourism Barometer , international tourism is on track to reach 80% to 95% of pre-pandemic levels in 2023. Prospects for September-December 2023 point to continued recovery, driven by the still pent-up demand and increased air connectivity particularly in Asia and the Pacific where recovery is still subdued.

Related links

• Download the News Release on PDF
• UNWTO World Tourism Barometer
• IMF World Economic Outlook

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The magazine of Glion Institute of Higher Education

• What is tourism and hospitality?

Tourism and hospitality are thriving industries encompassing many sectors, including hotels, restaurants, travel, events, and entertainment.

It’s an exciting and dynamic area, constantly evolving and adapting to changing customer demands and trends.

The tourism and hospitality industry offers a diverse range of career opportunities that cater to various interests, skills, and qualifications, with positions available from entry-level to executive management.

The booming tourism  and hospitality industry also offers job security and career growth potential in many hospitality-related occupations.

What is tourism?

Tourism is traveling for leisure, pleasure, or business purposes and visiting various destinations, such as cities, countries, natural attractions, historical sites, and cultural events, to experience new cultures, activities, and environments.

Tourism can take many forms, including domestic, or traveling within your country, and international tourism, or visiting foreign countries.

It can also involve sightseeing, adventure tourism , eco-tourism, cultural tourism, and business tourism, and it’s a huge contributor to the global economy, generating jobs and income in many countries.

It involves many businesses, including airlines, hotels, restaurants, travel agencies, tour operators, and transportation companies.

What is hospitality?

Hospitality includes a range of businesses, such as hotels, restaurants, bars, resorts, cruise ships, theme parks, and other service-oriented businesses that provide accommodations, food, and beverages.

Hospitality is all about creating a welcoming and comfortable environment for guests and meeting their needs.

Quality hospitality means providing excellent customer service, anticipating guests’ needs, and ensuring comfort and satisfaction. The hospitality industry is essential to tourism as both industries often work closely together.

What is the difference between tourism and hospitality?

Hospitality and tourism are both related and separate industries. For instance, airline travel is considered as part of both the tourism and hospitality industries.

Hospitality is a component of the tourism industry, as it provides services and amenities to tourists. However, tourism is a broader industry encompassing various sectors, including transportation, accommodation, and attractions.

Transform your outlook for a successful career as a leader in hospitality management

This inspiring Bachelor’s in hospitality management gives you the knowledge, skills, and practical experience to take charge and run a business

Is tourism and hospitality a good career choice?

So, why work in hospitality and tourism? The tourism and hospitality industry is one of the fastest-growing industries in the world, providing a colossal number of job opportunities.

Between 2021 and 2031, employment in the hospitality and tourism industry is projected to expand faster than any other job sector, creating about 1.3 million new positions .

A tourism and hospitality career  can be a highly rewarding choice for anyone who enjoys working with people, has a strong service-oriented mindset, and is looking for a dynamic and exciting career with growth potential.

Growth and job opportunities in tourism and hospitality

Tourism and hospitality offers significant growth and job opportunities worldwide. The industry’s increasing demand for personnel contributes to economic and employment growth, particularly in developing countries.

The industry employs millions globally, from entry-level to high-level management positions, including hotel managers, chefs, tour operators, travel agents, and executives.

It provides diverse opportunities with great career progression and skill development potential.

Career paths in tourism and hospitality

There are many career opportunities in tourism management and hospitality. With a degree in hospitality management, as well as relevant experience, you can pursue satisfying and fulfilling hospitality and tourism careers in these fields.

Hotel manager

Hotel managers oversee hotel operations. They manage staff, supervise customer service, and ensure the facility runs smoothly.

Tour manager

Tour managers organize and lead group tours. They work for tour companies, travel agencies, or independently. Tour managers coordinate a group’s transportation, accommodations, and activities, ensuring the trip runs to schedule.

Restaurant manager

Restaurant managers supervise the daily operations of a restaurant. They manage staff, ensure the kitchen runs smoothly, and monitor customer service.

Resort manager

Resort managers supervise and manage the operations of a resort. From managing staff to overseeing customer service, they ensure the entire operation delivers excellence.

Entertainment manager

Entertainment managers organize and oversee entertainment at venues like hotels or resorts. They book performers, oversee sound and lighting, and ensure guests have a great experience.

Event planner

Event planners organize and coordinate events, such as weddings, conferences, and trade shows. They work for event planning companies, hotels, or independently.

vent planners coordinate all aspects of the event, from the venue to catering and decor.

Travel consultant

Travel consultants help customers plan and book travel arrangements, such as flights, hotels, and rental cars. They work for travel agencies or independently. Travel consultants must know travel destinations and provide superb customer service.

What skills and qualifications are needed for a career in tourism and hospitality?

Tourism and hospitality are rewarding industries with growing job opportunities. Necessary qualifications include excellent skills in communication, customer service, leadership, problem-solving, and organization along with relevant education and training.

Essential skills for success in tourism and hospitality

A career in the tourism and hospitality industry requires a combination of soft and technical skills and relevant qualifications. Here are some of the essential key skills needed for a successful career.

• Communication skills : Effective communication is necessary for the tourism and hospitality industry in dealing with all kinds of people.
• Customer service : Providing excellent customer service is critical to the success of any tourism or hospitality business . This requires patience, empathy, and the ability to meet customers’ needs.
• Flexibility and adaptability : The industry is constantly changing, and employees must be able to adapt to new situations, be flexible with their work schedules, and handle unexpected events.
• Time management : Time management is crucial to ensure guest satisfaction and smooth operations.
• Cultural awareness : Understanding and respecting cultural differences is essential in the tourism and hospitality industry, as you’ll interact with people from different cultures.
• Teamwork : Working collaboratively with colleagues is essential, as employees must work together to ensure guests have a positive experience.
• Problem-solving : Inevitably, problems will arise, and employees must be able to identify, analyze, and resolve them efficiently.
• Technical skills : With the increasing use of technology, employees must possess the necessary technical skills to operate systems, such as booking software, point-of-sale systems, and social media platforms.

Revenue management : Revenue management skills are crucial in effectively managing pricing, inventory, and data analysis to maximize revenue and profitability

Master fundamental hospitality and tourism secrets for a high-flying career at a world-leading hospitality brand

With this Master’s degree, you’ll discover the skills to manage a world-class hospitality and tourism business.

Education and training opportunities in tourism and hospitality

Education and training are vital for a hospitality and tourism career. You can ensure you are prepared for a career in the industry with a Bachelor’s in hospitality management   and Master’s in hospitality   programs from Glion.

These programs provide a comprehensive understanding of the guest experience, including service delivery and business operations, while developing essential skills such as leadership, communication, and problem-solving. You’ll gain the knowledge and qualifications you need for a successful, dynamic, and rewarding hospitality and tourism career.

Preparing for a career in tourism and hospitality

To prepare for a career in tourism and hospitality management, you should focus on researching the industry and gaining relevant education and training, such as a hospitality degree . For instance, Glion’s programs emphasize guest experience and hospitality management, providing students with an outstanding education that launches them into leading industry roles.

It would help if you also worked on building your communication, customer service, and problem-solving skills while gaining practical experience through internships or part-time jobs in the industry. Meanwhile, attending industry events, job fairs, and conferences, staying up-to-date on industry trends, and networking to establish professional connections will also be extremely valuable.

Finding jobs in tourism and hospitality

To find jobs in tourism and hospitality, candidates can search online job boards, and company career pages, attend career fairs, network with industry professionals, and utilize the services of recruitment agencies. Hospitality and tourism graduates can also leverage valuable alumni networks and industry connections made during internships or industry projects.

Networking and building connections in the industry

Networking and building connections in the hospitality and tourism industry provide opportunities to learn about job openings, meet potential employers, and gain industry insights. It can also help you expand your knowledge and skills, build your personal brand, and establish yourself as a valuable industry professional.

You can start networking by attending industry events, joining professional organizations, connecting with professionals on social media, and through career services at Glion.

Tips for success in tourism and hospitality

Here are tips for career success in the tourism and hospitality industry.

• Gain relevant education and training : Pursue a hospitality or tourism management degree from Glion to gain fundamental knowledge and practical skills.
• Build your network : Attend industry events, connect with colleagues and professionals on LinkedIn, and join relevant associations to build your network and increase your exposure to potential job opportunities.
• Gain practical experience : Look for internships, part-time jobs, or volunteering opportunities to gain practical experience and develop relevant skills.
• Develop your soft skills : Work on essential interpersonal skills like communication, empathy, and problem-solving.
• Stay up-to-date with industry trends : Follow industry news and trends and proactively learn new skills and technologies relevant to tourism and hospitality.
• Be flexible and adaptable : The tourism and hospitality industry constantly evolves, so be open to change and to adapting to new situations and challenges.
• Strive for excellent guest service : Focus on delivering exceptional guest experiences as guest satisfaction is critical for success.

Tourism and hospitality offer many fantastic opportunities to create memorable guest experiences , work in diverse and multicultural environments, and develop transferable skills.

If you’re ready to embark on your career in tourism and hospitality, Glion has world-leading bachelor’s and master’s programs to set you up for success.

Photo credits Main image: Maskot/Maskot via Getty Images

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• December 7, 2023
• Education Advice

Hospitality & Tourism Degrees: Everything You Need to Know

UOTP Marketing

Tourism has experienced massive growth as an industry in recent decades. Compared to the old days, people are now spending way more on travel, restaurants, and relaxation. What does that mean for the people employed in this industry? It means that the prospects are higher than ever. Also, this is the best time to get involved in studying hospitality and tourism .

Yet, earning a hospitality and tourism degree is not all that easy. Facilitating people’s experiences and managing hotels, catering, needs, and demands can indeed be rocket science. So read below to find out what you have to go through to get a degree in Hospitality and Tourism.

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Discover all you need to know before you join the field.

Hospitality and Tourism Education Requirements

Many believe that they can succeed in the hospitality and tourism industry even without as much of an undergraduate degree. Although that is true for some positions, if you aim to pursue roles in higher levels of a company’s management hierarchy, you will need to work toward meeting some educational requirements. 

To begin, as soon as you complete your secondary level education, it is wise to enroll in an undergraduate program, be it an associate or bachelor’s degree. With such degrees, you will have opened yourself up to many opportunities for entry-level positions within the management field.

Suppose you want better chances of landing a position, gaining an edge over your competitors, and showcasing your dedication toward improving yourself and your skill set. In that case, you should pursue a graduate degree. 

The Bureau of Labor Statistics, which makes employment projections for more than 800 occupations, reports that the educational requirements for entry into professions from various fields are evolving. According to their reports, the need for a master’s degree to enter occupations is projected to grow by almost 17%, whereas for doctoral ones, about 13%.

To know more about how you can fulfill the education requirements for hospitality and tourism, continue reading below as we go through the various undergraduate and graduate degrees in this field, their duration, the careers available after you obtain each one, and the median salary associated with them.

Types of Hospitality & Tourism Degrees

There are different degrees you can pursue if you decide to study hospitality and tourism . They may include BA, Bachelor of Business Administration , BS, MS, MBA, PhD , and short term courses, covering everything from hotels, restaurants, cruise ships, amusement parks, destination marketing organizations, and convention centers or country clubs. You can get a degree in the hospitality and tourism industry from a University college dedicated to the studies of hospitality management or a business school with a relevant department.

Associate Degree in Tourism and Hospitality

An Associate degree may be of huge help for your career advancement. Yes, most entry-level management positions do not necessarily require a degree. But you still want to be recognized as a professional of the field you work in, no? Associate degrees can be divided into two-degree programs:

• Associate of Applied Science in Hospitality Management
• Associate of Science in Hospitality and Tourism

The Hospitality Management degree program offers thorough studies of theoretical and practical management skills, hospitality business law, and food and beverage management. Whereas, hospitality and tourism management degree programs aim to develop student’s skills in the areas of marketing, purchasing, budgeting, and cost control. Both of these programs differ in their emphasis, with one focusing more on management skills and the other on travel planning skills.

Bachelor’s Degree in Hospitality and Tourism Management

A bachelor’s degree in hospitality and tourism management gives you plenty of opportunities to work in leadership and management positions within the tourism and hospitality industry. Through a 4-year program, you can learn about the most significant concepts, skills, and values of the tourism and hospitality industry. Later on, you can use those skills to decision-making processes, problem-solving, and facilitating people’s experience in the travel and hospitality industry.

Master’s Degree in Hospitality and Tourism Management

Once you obtain a bachelor’s degree in hospitality and tourism management, you may be asking yourself if there are higher education options to pursue in this field, and if they’re really worth it? We would say that it depends on what you want to do in the future. Master’s degrees in hospitality and tourism usually take the form of MS (Master of Science) or MBA (Master of Business Administration). Around 15% of hospitality graduates go on to study further or combine study and work.

By pursuing an MS or MBA in hospitality and tourism, you can specialize in a particular hospitality-related function, or broaden your opportunities by moving into other career areas. Needless to say, the numbers of your salary will automatically increase as qualifications follow your experience.

Online Degree in Hospitality and Tourism

If you enjoy working with people, pursuing a degree in hospitality and tourism can be your call. But sometimes the circumstances don’t allow us to commit to a certain degree fully. That’s why the option of pursuing an online degree instead could just save the day. Whether you want to reduce costs or time, a hospitality management degree online can prepare you for a wide range of hospitality management jobs across the industry.

There are some great colleges that can offer you an online bachelor of science degree in hospitality management or an online bachelor of science in hospitality and tourism management. The best thing about these programs is that you can build your knowledge of the industry following your own pace. Corresponding courses will introduce you to the wide range of disciplines in the field, depending on if you’re looking for a career in culinary arts, hotel managing, or career opportunities in business administration.

What Skills Do You Need to Develop to Work on Hospitality and Tourism?

As with many other career fields, the tourism and hospitality industry encompasses a set of skills that you will need to develop in order to land a job and continue thriving professionally. Through a combination of technical and soft skills that you earn through your education, you showcase to your employers as well as customers that you are competent in your position and even ready for a promotion to better ones. Below, we’ll go through the top skills you need to develop to work in hospitality and tourism.

Customer service skills

Arguably, the most critical skill in the hospitality and tourism industry is customer service. After all, without customers, there would be no income, and without revenue, there would be no success in the industry. Developing such a skill is essential to your success as surveys show that business professionals as potential employers prioritize providing satisfactory customer experience before product/service and pricing.

As a professional in the tourism and hospitality industry, it is your responsibility to make your customers feel heard and valued, so they leave satisfied with your business.

It is a well-known fact that technology has evolved immensely in the last few decades to the point that nearly all industries are heavily reliant on it for daily operations. The hospitality and tourism industry is no different, as being knowledgeable and skilled in working with various networks and software is a must for all professionals. Some of the top digital skills one must possess to succeed in this field include:

• MS Office skills,
• online marketing and communication skills,
• operating systems use skills
• social media skills
• skills to monitor online reviews

Human resource management

As you begin to work in management positions, you will need the necessary skills to attract and retain employees and motivate them to work toward your shared goals. Human resource management skills will be crucial toward obtaining people suitable to provide the services of your business, expanding your resources, managing compensations, and many other things. Developing such a skill will give you an advantage over your competitors in any managerial role within the hospitality and tourism industry and beyond.

Communication

Communication is one of the top soft skills needed to succeed in the hospitality and tourism industry. Being skilled in effectively expressing your ideas, reporting on your duties, and dealing with customers from diverse backgrounds, is crucial in this industry. Being articulate is only one aspect of this skill, as other details such as body language and writing are some other aspects. From co-workers to mentors, mentees, and customers— proper communication will make everyone’s job easier.

Teamwork 

Another soft skill you should develop is teamwork. You cannot go far in the tourism and hospitality industry without having people to help you; therefore, being a team player is a must. Studies support this claim, as they suggest that there are many benefits of having workplace collaboration , including an increase in customer satisfaction and sales, as well as better product quality.

If you are applying for an entry-level position or even jumping straight to managerial roles, your employers will consider how well you can fit in with their already-existing team when assessing you for the job.

Problem-solving

Because of the nature of the industry, with each customer being different from the other, problems can arise daily. You must be well-prepared and skilled in problem-solving to identify your customers’ problems, find solutions to their requests, and work on ways you can improve for the future. Developing skills in problem-solving will help keep your customers happy and help you flourish in this field.

Highest Paying Jobs in Hospitality

There are different jobs you can get involved in the industry of hospitality and tourism. From entry-level ones to top leadership positions that can pay you a fortune for your services. But of course that reaching those top positions requires quite the effort, work experience, and qualification. According to Monster.com ’s list – based on the data from BLS and salary.com, these are the highest paying jobs in the industry of hospitality and tourism:

1. Director of Housekeeping

Directors of Housekeeping ensure that rooms and premises are all clean and organized within the hotel they work with. Their duties include: maintaining and ordering supplies, investigating complaints, supervising housekeepers, training new employees, and ensuring customer satisfaction. The typical qualifications expected from Directors of Housekeeping are housekeeping experience, attention to detail, leadership, coaching skills, teamwork, and time management. Considering the nature of the job, you will also need a degree in hotel management. They get paid $74,712 per year.

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2. Executive Casino Host

This position requires people who are naturally friendly and cheerful, as they have to draw casino customers with their attitude. The executive casino host supervises and coordinates employees working in the gaming area of a casino. Their work schedule involves extended hours and working outside traditional business hours. A bachelor’s degree in a field such as hospitality and tourism management is usually asked from them and some years of experience. They get paid $55,044 per year.

3. Executive Chef

Executive chefs are known for performing tasks outside of the kitchen too. Except for creating new recipes or planning menus, they are also involved in hiring or training food staff, maintaining the inventory for food supplies, purchasing orders, or creating food budgets. This means that they’re in charge of the daily operations of hotel and restaurant kitchens. Executive chefs make $67,632 per year.

4. Executive Pastry Chef

Pretty much the same job description of an executive chef corresponds to an executive pastry chef as well, except that, in this case, the executive pastry chef is responsible for a restaurant’s baking and dessert operations. Except for being charged for dessert recipes, these people also supervise employees, order supplies, and seek to harmonize the restaurant’s work with sanitation regulations. The annual salary of executive pastry chefs is $65,623 per year.

5. Flight Attendant

There’s so much more to flight attendants then just courtesy and elegance. They are responsible for ensuring that the safety and comfort needs of passengers are met during flights. They perform plenty of actions that involve emergency procedures and safety checks, with the purpose of properly directing passengers. These travel bugs are paid a whole $50,500 per year.

6. Food and Beverage Director

Food and beverage directors are responsible for offering guests the perfect dining experience, starting from the venue to everything service-related. These people are expected to be professionals of the field, with a formal qualification (degree or certificate ) and with relevant years of experience. They also supervise kitchen staff and plan the delivery of food in large establishments, catering companies, schools, or hospitals. They work closely with the HR to hire and train staff, and they get paid $72,248 per year.

7. Hotel Manager

Hotel managers strive to keep their guests happy, hotel operations efficient, and businesses profitable. They are responsible for much of the hotel-related functions, starting from checking guests in and out and supervising available rooms to managing dining areas and hiring and training staff. Hotel managers oversee multiple departments within hotel hospitality. A bachelor’s degree in hospitality or hotel management is typical for this job, and they get paid a whole $106,680 per year.

8. Meeting/Event managers

The position title pretty much sums up the job description. Convention, meeting and event planners try their best to understand their client’s needs and specifics regarding the aspects of event organization. These people coordinate all details related to location, booking, transportation, and professional calls. You’ll need some work experience to work in this field, and you’d get paid $78,589 per year as your fellow event managers currently are.

9. Restaurant General Manager

The role of general restaurant managers is mostly of a supervisory nature. These people are responsible for estimating food and supply needs, overseeing the placement of orders, managing the budget, and implement daily operations based on that budget. They’re also involved in hiring and training employees. Their role emphasizes the importance of providing cost-effective and high-quality services for guests. For this position, no formal education is necessarily required, yet, you must have prior work experience. Restaurant general managers get paid $53,127 per year.

10. Sommelier

Hotels and restaurants of high reputation, usually hire people to be their in-house wine experts. These wine experts are also called sommeliers, and they offer guests specific advice for the proper wine that combines best with their meal. Businesses in this industry also hire sommeliers to consult with them on particular wine choices for certain events. Imagine being paid a whole $56,551 per year to give your opinion on wine! Sounds fantastic, doesn’t it?

Benefits of a career in Hospitality and Tourism

Hospitality and tourism represent the most dynamic, fast-growing industry. To add to that, a career in this industry can be the most exciting step to take for yourself. Potential jobs you may seek are all about communication, adventure, and so many other advantages that have been proven to impact your wellbeing as well, both physically and psychologically. Read below to see the benefits we have highlighted for if you decide to follow this career path.

1. It’s doesn’t feel like work

Most of the jobs in hospitality and tourism are not typical 9-5 jobs. You get to live a hectic life, yes, but at least you get to do that outside the environments of a dull office. Hospitality was ranked #6 in the top 10 ‘Happiest industries’ based on responses such as ‘I’m excited about my work and projects,’ ‘I work with great people’ and ‘I feel recognized and appreciated.’

2. It provides you with global experiences

The nature of this industry is of the sort that you will learn many aspects of the global economy, traditions, and diversity of mindsets. Whether through traveling alone, or doing business with fellow hospitality businesses from different countries, you will see how different and yet alike we are. Learning about different cultures will always be part of your routine in this industry.

3. Social Interaction

You have to be a people’s person to pursue a degree in hospitality and tourism. That’s basically the beauty of it, as you get the chance to meet and greet so many personalities. It might be overwhelming for some individuals; however, it may become some of the things you most look forward to once you realize just how many valuable perspectives you can get from guests and clients with different backgrounds.

4. No day is the same

One day you’re traveling, the other you’re hosting, showing people around, or making sure they have the best experience of the place they’re visiting. This means that you won’t have to wake up every day just to perform the same monotonous tasks. And that adds so much thrill to your days and makes you look forward to work, because you never know what to expect within this industry.

5. Drives your curiosity

As no day is the same, you will always be driven by a curiosity to advance your career and see what else you can learn. We know that studies have shown how travel can broaden the mind, but that’s not the only fact anymore. Science now suggests that you can gain the same benefits that people get from traveling, also by working in the hospitality industry. You’ll have plenty of flexibility to take some time and absorb new things regarding your exciting job or question people for hidden gems.

6. Career growth opportunities

And we’re not just talking about professional growth, but for your personal growth as a human being as well. Upcoming generations are seeking out jobs that will excite them, according to the Harvard Business Review . They claim that ‘growth opportunities’ are some of the most important factors that push them to choose a career over the other. And of course, they will choose a career in hospitality , with all the worldwide travel opportunities and networking advantages.

Is a Degree in Hospitality & Tourism Management Worth It?

The bottom line is that although the hospitality and tourism industry is very exciting and dynamic, it won’t always feel like a never-ending holiday. We’re talking about a highly competitive and dynamic field, which demands well-trained professionals and a serious work ethic. To have all this baggage and stand out from other candidates, you need to complete an in-depth study program. You need this degree specifically if you aim for higher leadership positions because of the entry-level ones you could get even with some years of work experience.

So we do think that a degree in hospitality and tourism is worth it, yet, you should tailor the decision according to your long-term ambitions.

Frequently Asked Questions (FAQs)

What’s the difference between an ms and an mba in hospitality and tourism management.

An MS typically focuses on specialized knowledge and research within the industry, while an MBA emphasizes business administration skills applicable to various sectors, including hospitality.

Are there specific areas of specialization within these programs?

Yes, programs may offer concentrations like hotel management, event planning, sustainable tourism, or destination management, allowing students to delve deeper into their areas of interest.

What career advantages come with a master’s degree in this field?

A master’s can lead to greater industry recognition, increased earning potential, and opportunities for leadership roles.

Is work experience necessary before pursuing a master’s in hospitality and tourism?

While not always mandatory, having work experience can provide valuable insights and context that enrich the learning experience in a master’s program.

Are online programs as reputable as on-campus ones in this field?

Many reputable institutions offer online master’s programs in hospitality and tourism. The key is to ensure accreditation and evaluate factors like faculty expertise and industry connections.

What are some challenges specific to advanced studies in this field?

Challenges might include keeping pace with industry trends, balancing academic commitments with work (for those studying part-time), and ensuring alignment between academic theory and practical industry demands.

Do these programs usually offer networking opportunities or internships?

Yes, many programs facilitate internships or cooperative education experiences to help students gain practical skills. Additionally, they often provide platforms for networking through industry events, conferences, and alumni connections.

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Improving sustainability in tourism & hospitality

H ospitality has been among the sectors hit hardest by COVID-19 shutdowns. But with travel beginning to return in parts of the world, many hotels are springing back to life.

The agenda for recovery cannot simply be about getting ‘back to normal,’ though. The travel market has changed—permanently. Leisure and business travelers alike have new priorities and needs. In both segments, sustainability is a bigger priority than ever before—especially but not only when it comes to carbon emissions.

Hospitality has a unique opportunity to take the lead on sustainability across all dimensions of ESG—environmental, social and governance—and build it into the core of the way the sector works. The industry players that thrive will be those who meet their customers’ demands for more sustainable travel options . Those who fall short risk being left behind.

Changing priorities, new opportunities

For many business travelers —a critical segment for many hospitality brands—the pandemic put an abrupt stop to their travel. Having been forced into an extended experiment with remote working and online meetings, many corporates are reconsidering their travel policies.

What’s more, businesses are under growing pressure to cut their emissions:

• Their own customers expect it—as do politicians and regulators as the global momentum for a cleaner, greener economy grows.
• For many corporations, their Scope 3 emissions—which include travel emissions—are a clear target for reductions.
• Combined with the new emphasis on smart travel decisions and maximizing the benefits of every single trip, a rapid return to pre-pandemic levels of travel is unlikely.

When it comes to consumers, the key dynamic is a deep rethinking among consumers about what matters in life. Some 50% of consumers globally have reassessed what’s important to them as a result of the pandemic, according to Accenture’s Life Reimagined research among 25,000 people. Sustainability is high among their priorities. Consumers are increasingly ready to switch away from brands that don’t align with their values—but the research also suggests they’re increasingly prepared to pay a premium for those that do.

In the post-pandemic battle for market share, winning customer sentiment and loyalty increasingly means meeting the new expectations on sustainability.

Destination sustainability

Can the sector afford sustainability.

Despite the rising importance of sustainability to both leisure and business travelers, some in the travel sector still struggle to make the business case for it. “Resources are limited—especially right now,” says Daniel Kowalewski, Managing Director at Accenture. “Companies are in a tight spot. They’re trying to be as prudent as they can.”

That is a real predicament when cashflow has been so disrupted by the pandemic. But the question should be less whether the sector can afford greater sustainability—and more whether it can afford to fall behind its customers’ evolving expectations. Recent Accenture research has found that 83% of 25- to 34-year-olds are willing to pay more for sustainable travel options. 1 Any hospitality business that struggles to align with its customers will find itself vulnerable to greener competitors.

And the return on investment for hotel decarbonization could be substantial, relatively quickly—one study found that such investments could yield internal returns of 38% after five years. 2

Investing in decarbonization

Some pro-sustainability switches can be made with minimal expense. India-based Chalet Hotels has committed to using 100% renewable energy by 2031. 3 “In a lot of countries, you can move to renewable electricity and it’s actually no more expensive than non-renewable electricity,” says Jesko Neuenburg, Managing Director and Global Travel & Aviation Sustainability Lead at Accenture.

The Sustainable Hospitality Alliance has calculated that hospitality needs to reduce per-room carbon emissions by at least 66% by 2030, and 90% by 2050, based on 2010 levels. 4 That level of decarbonization will require some investment—but the cost:benefit ratio is changing rapidly. With rising interest in green standards for hotels, and Google and Booking.com adding eco-certifications to search results, more and more customers are likely to make lower-carbon choices.

Responsible hospitality gets started

Some hospitality companies already have bold ESG strategies for tackling a wide range of priorities besides carbon emissions.

Waste is a key priority and food waste is particularly important:

bottles expected to stop going to landfills every year. By replacing single-use toiletry bottles in rooms with larger pump-topped bottles, Marriott International has made waste a key priority. 5

of Accor's generated waste and largest contributor to its biodiversity and water footprint comes from food—so it’s made food a priority in its latest sustainability strategy. 6

tons of food waste were diverted from landfills by MGM Resorts, repurposed into animal feed and converted into biofuel. 7

RELATED: Explore travel’s changing realities in The Guide digital travel magazine

Social impact—local communities

For the hospitality sector, impact on local communities is another critical dimension—especially in fragile natural ecosystems and in developing economies, where tourism can play a major economic role. Everyone suffers when unique destinations are damaged.

Hospitality also needs to engage closely with the communities where it operates. Supply chains are key. Procuring goods and services such as food locally can have a positive social impact—as well as cutting carbon emissions. Ensuring high labor standards is another priority. And global travel firms have a key role as local employers too, creating jobs and providing development opportunities in areas where they may otherwise be limited.

Positive social impact begins inside the business

Truly sustainable businesses don’t only take action to reduce and mitigate their external environmental impacts. They also take responsibility for their role as employers in addressing major social questions.

If employers don't act on today’s prominent social issues—be it increasing the number of women in leadership roles, reflecting racial and ethnic diversity or implementing fair labor standards in their supply chain—customers will quickly lose trust.

Hilton Hotels plans to achieve gender parity in its leadership roles globally by 2027 and increase ethnic diversity among its US leadership roles to 25%. 8 Its approach has earned it the number one spot on DiversityInc’s 2021 Top 50 Companies for Diversity list. 9

Social impact also extends to the sector’s critical role in the fight against human trafficking. Progress has been made on this issue in recent years: It needs to remain a priority. Marriott International, for instance, launched an enhanced version of its human-trafficking awareness training in July 2021, to help its people recognize and respond to the warning signs. 10

Decarbonization target corridors

Pandemic recovery, future growth and sustainability go hand in hand. There are two critical spheres for organizations to act in to meet changing customer demands and capture the opportunities of growth and a sustainable future.

The first is picking up the pace on decarbonization. A recent report from the World Travel & Tourism Council (WTTC) in collaboration with the UN Environment Programme (UNEP) and Accenture— A Net Zero Roadmap for Travel and Tourism —proposes a new roadmap framework for net zero. It sets out three different decarbonization target corridors, recognizing that some sectors will be able to move faster than others.

The first step is setting the right baselines and emission targets now for 2030 and 2050 goals. That needs to be followed by monitoring and reporting on progress.

The report also proposes collaboration within and across industries—a rich opportunity for hospitality businesses as a part of the broader travel industry , and for collaboration with local partners wherever they operate.

A net zero roadmap for travel & tourism

Building sustainability into hospitality’s dna.

Hospitality companies need to be strategic about sustainability—and to do that they need to understand why it is so important. “What’s frequently missing is the why,” says Andrew Maliszewski, Business Strategy Senior Manager at Accenture.

To truly understand those business drivers and how they can be translated into an effective sustainability strategy, Accenture has developed a new framework for Sustainability DNA . It identifies Five Elements of Sustainable Leadership and 21 management practices, systems and processes spanning all dimensions of sustainability—from improving conditions and creating inclusion for employees, to building a learning culture and engaging in the development of local learning ecosystems.

As many hospitality brands operate a franchise-based business model, it’s vital that brands and owners work together closely as they adopt the Sustainability DNA framework.

The sustainability opportunity

The landscape for hospitality has changed permanently. The sector has a unique opportunity to lead the way on sustainability as it gets back to growth.

The benefits for hospitality are clear: aligning with consumers’ values and desire to be able to travel sustainably ; winning back business travelers as corporates bear down on their carbon emissions; capitalizing on the growing willingness of consumers to pay a little more for sustainability; and playing its part in the global effort to limit temperature rises and avoid catastrophic climate change.

Thriving in the new world means putting sustainability at the heart of your strategy for recovery.

For more on how hospitality can get back to growth more sustainably than ever—and our model for Sustainability DNA—read the full report: Mapping the Road Ahead: How can travel companies achieve a sustainable recovery?

SUSTAINABILITY IN AVIATION

1 Accenture Traveler Sustainability Preferences Survey, August 2021

2 Transforming Existing Hotels to Net Zero Carbon

3 Chalet Hotels becomes first hospitality company globally to join Climate Group's RE100, EP100 and EV100 initiatives

4 Global Hotel Decarbonisation Report

5 Marriott International To Eliminate Single-Use Shower Toiletry Bottles From Properties Worldwide, Expanding Successful 2018 Initiative

6 With Planet 21, Accor aims to provide a positive hospitality experience

7 Did The Pandemic Sabotage Hotel Sustainability Trends?

8 Hilton Sets Leadership Diversity Goals Ahead of Hotels Jobs Revival

9 Hilton Ranked #1 on DiversityInc’s Top 50 Companies for Diversity List

10 Marriott International Launches Enhanced Human Trafficking Awareness Training

Managing Director – Global Travel & Aviation Sustainability Lead

Jesko is leading Accenture’s global travel sustainability center of excellence.

Managing Director – Travel Industry, North America

Results-driven executive with over 20 years of experience focused on revenue management, pricing and strategy formulation.

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We help travel companies act effectively on ESG goals to achieve a sustainable recovery.

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Accenture helps travel companies outmaneuver uncertainty in a new era of travel.

Frequently asked questions

What are the benefits of sustainable tourism and hospitality.

The landscape for hospitality has changed permanently. The sector has a unique opportunity to lead the way on sustainability as it gets back to growth. The benefits for tourism and hospitality are clear: aligning with consumers’ values and desire to be able to travel sustainably; winning back business travelers as corporates bear down on their carbon emissions; capitalizing on the growing willingness of consumers to pay a little more for sustainability; and playing its part in the global effort to limit temperature rises and avoid catastrophic climate change. Thriving in the new world means putting sustainability at the heart of your strategy for recovery.

How can hotels be more sustainable?

Hospitality has a unique opportunity to take the lead on sustainability across all dimensions of ESG—environmental, social and governance—and build it into the core of sector operations. The industry players that thrive will be those who meet their customers’ demands for more sustainable travel options. Those who fall short risk being left behind. Research by the Sustainable Hospitality Alliance has found that hotels need to reduce carbon emissions by at least 66% per room by 2030, and by 90% by 2050, compared with 2010 levels, to keep pace with the 2°C cap set out in the Paris Climate Agreement. Improving building efficiency will need upfront investment, but the cost: benefit calculation is changing. One study has found that decarbonizing hotels could yield internal returns of about 38% after five years. With rising interest in green standards for hotels and the addition of eco-certifications to search results, more and more customers are likely to make lower-carbon choices.

What are the main environmental impacts of the hospitality industry?

Of all the challenges facing the travel and tourism industry as it becomes more sustainable, decarbonization is the biggest. Greenhouse gases related to travel are one of the most significant contributors to our environmental footprint, along with the electricity we use in our locations. Additionally, the travel industry’s impact on its stakeholders across the societies where it operates is significant—especially in many developing nations, where tourism plays a major economic role. Tackling environmental initiatives is not simply limited to energy sources, but also its social impact on communities. This includes ensuring high labor standards that advance diversity in the workplace, create sustainable supply chains, cut carbon emissions, and drive economic development opportunities.

Why is sustainability important in the hospitality industry?

The UN Global Compact and Accenture report published in November 2021, Climate Leadership in the Eleventh Hour, found that 73% of global CEOs feel increasing pressure to act on climate change. Fifty-seven percent are prioritizing action as part of their pandemic recovery. This explains why more than 5,000 businesses have joined the UN-backed Race to Zero, committing to achieving net-zero carbon emissions by 2050 without using offsets. More than 200 companies have signed the Climate Pledge to achieve net zero by 2040. That pressure on CEOs will not just change their companies’ operations—it will filter through to their supply chains. Leadership teams need to convert their organizations’ sustainability goals and values into behavioral change at all levels, which means building sustainability into the DNA of the organization.

Why Is Tourism and Hospitality Industry Important?

By Robert Palmer

Tourism and Hospitality Industry play a crucial role in the global economy, as it is one of the largest industries in the world. It encompasses a wide range of businesses, including hotels, restaurants, travel agencies, transportation services, and tourist attractions. In this article, we will explore why this industry is so important and how it impacts our daily lives.

Economic Impact

The Tourism and Hospitality Industry generates a significant amount of revenue for countries around the world. According to the World Travel & Tourism Council (WTTC), this industry contributed $8.9 trillion to the global economy in 2019. This figure is expected to rise by 3.5% per year over the next ten years.

The industry also creates jobs for millions of people worldwide. For instance, in 2019, this sector employed 330 million people globally, which accounts for one in ten jobs worldwide according to WTTC.

Social Impact

Apart from its economic importance, the hospitality and tourism industry has a significant social impact on communities around the world. It helps to promote cultural exchange between people from different parts of the world by providing opportunities for individuals to travel and experience new cultures.

Moreover, it promotes community development by creating job opportunities and infrastructure development such as roads and buildings which are essential for tourism activities.

Environmental Impact

The tourism industry also has an environmental impact on destinations worldwide. However, there have been conscious efforts towards sustainable tourism practices that minimize negative environmental impacts while maximizing positive social and economic benefits.

Sustainable tourism practices include energy-efficient measures at hotels and resorts, waste management programs that promote recycling or upcycling of materials used at tourist sites or accommodations among others.

In conclusion, The Tourism and Hospitality Industry is not only essential because it generates significant revenue but also because it provides job opportunities globally while promoting cultural exchange and community development. However, it is essential to note that the industry has an environmental impact that needs to be addressed through sustainable tourism practices.

3 Related Question Answers Found

Why is tourism management important, why do you think public relation is important in the tourism and hospitality industry, why is tourism organization important, backpacking - budget travel - business travel - cruise ship - vacation - tourism - resort - cruise - road trip - destination wedding - tourist destination - best places, london - madrid - paris - prague - dubai - barcelona - rome.

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16 Chapter 16 Hospitality & Tourism

Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton

Learning Objectives

• Understand what tourism is: definition, components, and importance.
• Understand the economic, social and environmental benefits and costs of tourism.
• Define hospitality and the pineapple tradition.
• Identify the types of hotel categories and how they are determined.
• Examine the different categories of food service operations.
• Understand the different types of events, meetings and conventions.

The tourism industry is often cited as the largest industry in the world, contributing 10% of the world’s GDP. In 2016 there were over 1.2 billion international tourists: that’s a substantial economic impact and movement of goods and services! 1 Tourism is also considered an export and is unique in that the consumers come to the product where it is consumed on-site. Before we dig any deeper, let’s explore what the term “tourism” means.

Definition of Tourism

There are a number of ways tourism can be defined. The United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

A social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure. 2

In other words, tourism is the movement of people for a number of purposes (whether business or pleasure). It is important to understand the various groups and constituencies involved in this movement. Of course it includes the tourist, but also the vast array of businesses providing goods and services for the tourist, the government and political structure of a destination, and the local residents of the destination community itself. Each of these components are necessary parts of a successful tourism destination and operate within private and public sectors, the built environment, and the natural environment. All these come together to create the processes, activities, and outcomes of tourism.

If it all seems a little overwhelming, it might be helpful to break tourism down into broad industry groups, each of which will be covered in this chapter:

Accommodation and Lodging

• Food and Beverage Services (F & B)

Recreation and Entertainment

• Convention & Event Management

Travel Services

• Private Clubs

Benefits and Costs of Tourism

Tourism impacts can be grouped into three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations. Some impacts gain more attention than others. It is also important to recognize that different groups and constituencies are impacted differently.

Economic Impacts of Tourism

The tourism industry has a huge economic impact that continues to expand to new markets and destinations. According to the UNWTO, in 2016 “The total export value from international tourism amounted to US$ 1.5 trillion.” 3  Regions with the highest growth in terms of tourism dollars earned (2016 vs 2015) are Africa, Asia and the Pacific, the Americas Europe. Only the Middle East posted negative growth at the time of the report. As well, the UNWTO’s Tourism 20 3 0 Vision report predicts that international arrivals will reach nearly 1.8 billion by 2030. 4 Figure 16.2 provides additional information about the impact of tourism worldwide.

Positive impacts from this economic boom include robust foreign exchange, increases in income, and GDP growth. Tourism can also offer diverse employment opportunities, can be developed with local products, and is often compatible with other economic activities within a destination. Tourism often injects money into the community that leads to secondary economic development as well. For example, successful resorts may create the need for a commercial laundry facility or a pet boarding business.

However, there are also negative impacts. Property values may increase to the point of unaffordability for local residents, and the seasonality of the tourism industry may create a feast-or-famine economy. As with any economy, if too many resources are focused on just one industry, communities may be vulnerable to any unexpected economic, social, or environmental changes. One example is the New Jersey shore after the devastation of Hurricane Sandy in 2012. The tourism industry was severely impacted, leaving no economic fallback for local residents.

Social Impacts of Tourism

In addition to the economic benefits of tourism development, positive social impacts include an increase in amenities (e.g., parks, recreation facilities), investment in arts, culture, heritage and tradition, celebration of indigenous communities, and community pride. Tourism also has the potential to break down language, socio-cultural, religious, and political barriers. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and promotes a positive image of the destination.

However, as identified by the United Nations Environment Programme, negative social impacts of tourism can include: change or loss of indigenous identity and values; culture clashes; changes in family structure; conflict within the community for the tourism dollar; and ethical issues, including an increase in sex tourism, crime, gambling, and/or the exploitation of child workers. 5

Environmental Impacts of Tourism

Tourism relies on, and greatly impacts, the natural environment in which it operates. In some destinations, there is a great appreciation of the environmental resources as the source of the tourism industry, and as such there are environmental protection policies and plans in place. Tourism has helped to save many delicate ecosystems and their flora and fauna. Preservation of these important resources benefits not only the tourist but also the local residents as well.

Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative economic impacts. According to The United Nations Environment Programme, these can include the depletion of natural resources (water, forests, etc.), pollution (air pollution, noise, sewage, waste and littering), and physical impacts (construction activities, marina development, trampling, loss of biodiversity, and spread of disease). 6

The environmental impacts of tourism can reach beyond local areas and have an effect on the global ecosystem. One example is increased air travel, which is often identified as a major contributor to climate change.

Whether positive or negative, tourism is a force for change around the world, and the industry is transforming at a staggering rate.

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The Hospitality Industry

When looking at tourism it is important to consider the term hospitality. Some define hospitality as “the business of helping people to feel welcome and relaxed and to enjoy themselves.” 7 Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry.

The pineapple has long been the symbol of hospitality. The Caribs, indigenous people of the Lower Antilles in the Caribbean, first used it as such a symbol. The Spaniards knew they were welcome if a pineapple was placed at the entrance to the village. This symbolism spread across Europe and North America where it became the custom to carve the shape of a pineapple into the columns at the entrance of the plantation. 8 Charles Carter added a three and a half foot wooden pineapple to the peak of the roof at Shirley Plantation, the first plantation in Virginia. 9 It is now common to see the image of the pineapple as a sign of welcome, warmth and hospitality.

The types of employees and resources required to run an accommodation business — whether it be a hotel, motel, or even a campground — are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation and lodging . Figure 16.4 summarizes the various groupings within the industry.

Hotel Types

Hotels are typically referred to by hotel type or other classifications. Hotel type is determined primarily by how it will function and what amenities will be included within the property. Size, location, service levels and type of business or targeted market segments are additional classifications. Industry also classifies hotels by chain scale…separating hotels into categories determined by their average daily rates. Various ownership structures and brand affiliations also differentiate hotels.

Classifications

Hotels may be classified on a number of different variables. Type of Hotel : There are numerous classifications by hotel type including all-inclusive hotels, all-suite properties, B&B/Inns, boutique, convention/conference centers, condo hotels, resort, extended stay, full service, casino, limited service and timeshare properties. Size and Complexity: A hotel can be classified by the number of guest rooms it has; hotel sizes can range from a small boutique hotel with fewer than 50 rooms to a large resort hotel with more than 1,000 rooms. The complexity of the hotel is determined by the volume and number of additional revenue generating functions such as the square feet of available conference space, number of F&B operations and additional services and amenities like pools, fitness centers, spas, golf, etc. Location: The location of a hotel can also determine the type of guest served. An airport hotel may be very different from a city-center property in an urban environment, or a remote island resort or a small quaint bed and breakfast located on top of a mountain. Hotels that specialize in conferences, may locate near entertainment destinations like Las Vegas or Disney theme parks to provide pre-post conference activities for attendees. Service Level: The level of service provided is also a key variable, ranging from an inexpensive budget or economy hotel, (Limited or Focused Service Hotels) which may have limited services and amenities, to upscale and luxury hotels (Full Service Hotels) with many services and a wide range of amenities. Market Segmentation: Figure 16.5 on the next page outlines the characteristics of specific hotel types that have evolved to match the needs of a particular traveler segment. As illustrated, hotels adapt and diversify depending on the markets they desire and need to drive occupancy levels and generate revenues. Some hotels will specialize in a specific market segment, but in today’s competitive environment, most hotels will target a combination of these segments.

There are several other industry related organizations, such as Forbes and AAA which provide Consumer Ratings for individual hotels….another form of classifying a property. Forbes has traditionally awarded 1 to 5 “Stars” and AAA, 1 to 5 “Diamond” ratings. Additionally, many social media applications like Trip Advisor offer hotel property ratings to consumers.

Chain Scale: Smith Travel Research (STR) is an organization that provides the lodging industry with global data benchmarking, analytics and marketplace insights. STR classifies the lodging industry into six chain scale segments according to their respective brand Average Daily Rate (ADR). The six segments are defined as Luxury ; Upper Upscale ; Upscale ; Mid-Scale with F&B ( Upper Mid-Scale ); Mid-Scale without F&B ( Mid-Scale ) and Economy . Through STR’s 30 –plus years of service to the hospitality industry, they have developed vital benchmarking performance solutions, established market trend transparency and provided data used by the investment community to support hotel development projects. Their core product, the STAR report, provides hotel owners and operators with comparative performance data between their property and a defined set of market competitors and allows you to follow trends in hotel occupancy, average daily rate (ADR) and revenue per available room (RevPar). Developers, investors, industry analysts, hotel brands and management companies all utilize STR data when determine what type of hotel to build and what location would provide maximum opportunity for success.

The type of ownership, brand affiliation and management are also very important variables in the classification of hotels. Owners may manage their own hotels independently but in today’s competitive environment, they would likely sign a Franchise Agreement with a nationally recognized brand as well as a Management Contract with a hotel management company to manage the property. A hotel chain such as Marriott, Hilton, Hyatt or IHG (Intercontinental Hotel Group) is comprised of multiple brands: Marriott, following their recent merger with Starwood currently has 30 different hotel brands, with each name representing a different level of price, service or targeted market segments.

Branding Decision

Selecting a brand affiliation is one of the most significant decisions hotel owners must make. 10 The brand affiliation selected will largely determine the cost of hotel development or conversion of an existing property to meet the standards of the new brand. The affiliation will also determine a number of things about the ongoing operation including the level of services and amenities offered, cost of operation, marketing opportunities or restrictions, and the competitive position in the marketplace. For these reasons, owners typically consider several branding options before choosing to operate independently or to adopt a brand affiliation.

Franchise Agreements

Another managerial and ownership structure is franchising. A hotel franchise enables individuals or investment companies (the franchisee) to build or purchase a hotel and then buy or lease a brand name to become part of a chain of hotels using the franchisor’s hotel brand, image, loyalty program, goodwill, procedures, cost controls, marketing, and reservations systems. 11

A franchisee becomes part of a network of properties that use a central reservations system with access to electronic distribution channels, regional and national marketing programs, central purchasing, revenue management support, and brand operating standards. A franchisee also receives training, support, and advice from the franchisor and must adhere to regular inspections, audits, and reporting requirements.

Selecting a franchise structure may reduce investment risk by enabling the franchisee to associate with an established hotel company. Franchise fees can be substantial, and a franchisee must be willing to adhere to the contractual obligations with the franchisor. 12 Franchise fees typically include an initial fee paid with the franchise application and continuing fees paid during the term of the agreement. These fees are usually a percentage of revenue but can be set at a fixed fee. The total percentage of sales ranges significantly for hotels from 3.3% – 14.7% with a median of 11.8%. 13

Management Contracts

It is common for ownership to utilize a management contract , which is a service offered by a management company to manage a hotel or resort for its owners. Owners have two main options for the structure of a management contract. One is to enter into a management agreement with an independent third-party hotel management company to manage the hotel. There are hundreds of these companies, but some of the large organizations include Aimbridge, Benchmark Hospitality, Crescent Hotels, Interstate Hotels, and White Lodging. A slightly different option is for owners to select a single company to provide both the brand and the expertise to manage the property. Marriott, Hilton, and Hyatt, are companies that provide this second option to owners.

Food and Beverage Services

The food and beverage sector is commonly known to industry professionals by its initials F&B. The F&B sector grew from simple origins to meet the basic needs for food and beverage services to increasing demand for unique experiences and broader options. As the interests of the public became more diverse, so too did the offerings of the F&B sector. The increasing awareness and demand for organic, sustainable, local or craft options as well as special dietary needs in food and beverage continue to challenge this industry. In addition, in order to better attract and serve a diverse array of diners, the F&B industry now consists of a variety of segments. The following is a discussion of each.

Quick Service Restaurants

Formerly known as fast-food restaurants, examples of  quick-service restaurants , or QSRs, include Chick-fil-A, Subway, and Pizza Hut. This prominent portion of the food sector generally caters to both residents and visitors, and it is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional “fast-food” image and style of service, it is still dominated by both fast food and food fast; in other words, food that is purchased and prepared quickly, and generally consumed quickly as well.

Fast Casual Restaurants

Fast Casual restaurants focus on higher quality ingredients than QSR’s and provide made-to-order food in an environment that does not include table service. Customers usually queue and order at a counter. The seating area is more upscale and comfortable. Examples would include Chipotle Mexican Grill, Panera and Jason’s Deli.

Full-Service Restaurants

Full-service restaurants  are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs. 14 The menus offered are varied, but in general reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual. Fine dining  restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere with table linens, fine china, crystal stemware, and silver-plate cutlery. The table is often embellished with fresh flowers and candles. In these businesses, the average check, which is the total sales divided by number of guests served, is quite high (often reviewed with the cost symbols of three or four dollar signs: $$ \$\$\$ or \$\$\$\$ $$.) Examples include the Inn at Little Washington, Ruth’s Chris Steakhouse and Capitol Grille.

Casual restaurants serve moderately-priced to upscale food in a more casual atmosphere. Casual dining comprises a market segment between fast casual establishments and fine dining restaurants. Casual dining restaurants often have a full bar with separate bar staff, a larger beer menu and a limited wine menu. This segment is full of chains such as Chili’s, Outback, Red Robin and Cracker Barrel as well as many independent restaurants in regional or local markets.

Family restaurants  offer affordable menu items that span a variety of customer tastes. They also have the operational flexibility in menu and restaurant layout to welcome large groups of diners. An analysis of menus in family/casual restaurants reveals a high degree of operational techniques such as menu item cross-utilization, where a few key ingredients are repurposed in several ways. Both chain and independent restaurant operators flourish in this sector. Examples of chains in this category would be Golden Corral, Cici’s Pizza and Ponderosa Steakhouse.

Ethnic restaurants  typically reflect the owner’s cultural identity, Vietnamese, Cuban, Thai, etc. The growth and changing nature of this sector reflects the acceptance of various ethnic foods within our communities. Ethnic restaurants generally evolve along two routes: toward remaining authentic to the cuisine of the country of origin or toward larger market acceptance through modifying menu items. 15 Examples would be P.F. Chang’s, Tara Thai or Pei Wei.

Bars, Wineries, and Craft Distilling

The beverage industry continues to evolve as well with a strong focus on local craft beers, wines, cider and distilling. Wineries exist in almost every state, with over 250 in Virginia as of 2015. 16 Wine, bourbon, cider trails and brew pub crawls, etc. are used to generate awareness and create experiences for customers. Wineries often use event space or festivals to take advantage of the beauty of the winery and supplement their revenues.

Institutional Food Service

Institutional f ood s ervice is large scale and often connected to governmental (National Parks) or corporate level organizations. Often run under a predetermined contract, the institutional F&B sector includes:

• Educational institutions
• Prisons and other detention facilities
• Corporate staff cafeterias
• National Park restaurants and concessions
• Cruise ships
• Airports and other transportation terminals and operations

Examples of companies who focus on Institutional Food Service are Compass, Sodexho, Aramark.

Accommodation Food Service

This sector includes hotel restaurants and bars, room service, and self-serve dining operations (such as a breakfast room).  Hotel restaurants are usually open to the public and reliant on this public patronage in addition to business from hotel guests. Collaborations between hotel and restaurant chains have seen reliable pairings such as the combination of Shula’s Steakhouse and Marriott Hotels.

Restaurant Industry Profitability and Cost Control

According to the National Restaurant Association, QSRs have the highest pre-tax profit margin at 6.3%, while full-service restaurants have a margin of 4.7%. There will be significant variances from these percentages at individual locations, even within the same brand. 17

A number of costs influence the profitability of an F&B operation. Some of the key operating expenses (as a percentage of revenue) are detailed in Figure 16.16, above, where food cost and salaries & wages are the two major expenses, each accounting for approximately a third of the total. Other expenses include rental and leasing of venue, utilities, advertising, and depreciation of assets. These percentages represent averages, and will vary greatly by sector and location.

Cost control and containment is essential for all F&B businesses. Demanding particular attention are the labor, food, and beverage costs, also known as the operator’s primary costs. In addition to these big ticket items, there is the cost of reusable operating supplies such as cutlery, glassware, china, and linen in full-service restaurants.

Recreation can be defined as the pursuit of leisure activities during one’s spare time 19 and can include vastly different activities such as golfing, sport fishing, and rock climbing. Defining recreation as it pertains to tourism, however, is more challenging.

Let’s start by exploring some recreation-based terms that are common in the tourism industry. Outdoor recreation can be defined as “outdoor activities that take place in a natural setting, as opposed to a highly cultivated or managed landscape such as a playing field or golf course.” 20   This term is typically applied to outdoor activities in which individuals engage close to their community. When these activities are further away, and people must travel some distance to participate in them, they are often described as “adventure tourism”. According to the United Nations World Tourism Organization (UNWTO), adventure tourism is “a trip that includes at least two of the following three elements: physical activity, natural environment, and cultural immersion.” 21

Ultimately, categorization is based on a combination of several factors, including manner of engagement in the activity (risk exposure, experience requirement, group or solo activity), the distance travelled to access the activity, and the type of environment (proximity to nature, level of challenge involved) in which the activity occurs.

A 2013 adventure tourism market study discovered that people who travel for adventure experiences tend to be well-educated, with 48% holding a four-year degree or higher credential. They value natural beauty and rank this factor highest when choosing a destination. The most cited reasons for their travel are “relaxation, exploring new places, time with family, and learning about different cultures.” 22

Globally, it is estimated that the continents of Europe, North America, and South America account for 70% of adventure tourism, or US$263 billion in adventure travel spending. 23

Entertainment

Entertainment is a very broad category which overlaps with many of the areas discussed elsewhere in this chapter, like hotels and accommodation. Two major types of entertainment that we’ll discuss here are gaming and theme parks.

Gaming has grown significantly in the U.S. and globally. The number of casinos in the U.S. has been growing since 2010, and in 2013, there were over 500 commercial casinos, as shown in Figure 16.16. Casinos are found all over the U.S. in major cities, riverboats, and on Native American lands. However, U.S. casino revenue has been relatively flat, while global gaming revenues have been on the increase, largely due to Asian market growth. Most casinos involve other facets of the Hospitality industry such as lodging, F&B, golf, entertainment, spas, etc., but they also have the added challenges of casino operations.

Theme Parks

Theme parks have a long history dating back to the 1500’s in Europe, and have evolved ever since. Today, it is hard not to compare any amusement park destination to Disneyland and Disney World. Opened in 1955 in sunny California, Disneyland set the standard for theme parks. Theme parks outside of California and Florida are often highly seasonable operations challenged with significant staffing and training requirements each year.

Convention and Event Management

A convention is a large meeting of people with similar interests who meet for a period of at least a few days to discuss their field. An  event  is a gathering at a given place and time, usually of some importance, often celebrating or commemorating a special occasion.

Both conventions and events can be extremely complex projects, which is why, over time, the role of meeting planners has taken on greater importance. The development of education, training programs, and professional designations such as CMPs (Certified Meeting Planners), CSEP (Certified Special Events Professional), and CMM (Certificate in Meeting Management) has led to increased credibility in this business and demonstrates the importance of the sector to the economy.

Meeting planners may be independent contractors hired to facilitate the planning process, work directly for the company full time to coordinate their meeting, or work for hotels, conference centers and event venues directly.

• The various tasks involved in meeting and event planning include:
• Conceptualizing/theming
• Site inspection & selection
• Logistics and planning
• Human resource management
• Marketing and public relations
• Budgeting and financial management
• Sponsorship procurement
• Management and evaluation

Event Categories

Mega events.

A m ega-event is a large scale, highly prestigious event such as the Olympic Games, the FIFA World Cup, or a global economic summit. These events typically gain tremendous media coverage and have major economic impacts on the host location, both positive and negative. High levels of tourism (1 million+ visitors) associated with a mega-event brings revenue, but the revenue may be outweighed by substantial capital and social costs incurred by the host. The events are often awarded to host destinations through a bidding process and gain tremendous media coverage.

Special Events

A special event is a one-time or infrequent specific ritual, presentation, performance, or celebration. Special events are planned and created to mark a special occasion, such as a presidential inauguration or the Queen of England’s 90 th birthday. Like mega-events, there may be significant media coverage and economic impact for the host city or destination.

Hallmark Event

A hallmark event is a unique event that is often identified with the location where it is held, like Carnival in Rio de Janeiro or Oktoberfest in Munich. Hallmark events contribute significant economic benefits and even can create a competitive advantage for the host city or destination that attracts tourists.

A festival is a themed public celebration that conveys, through a kaleidoscope of activities, certain meaning to participants and spectators. Festivals are often celebrations of community or culture and feature music, dance, or dramatic performances. Examples include Lollapalooza, the Cannes Film Festival, and Junkanoo in the Bahamas.

Local Community Events

A local community event is generated by and for locals; although it may attract tourists, its main audience is the local community. The community may experience measurable economic impacts, as might happen at The Steppin’ Out Street Fair in Blacksburg (think hotel stays and eating out). Fundraisers and community picnics are also examples in this category.

Meetings and Conventions

The tourism industry also has a long history of creating, hosting, and promoting meetings and conventions that draw business travelers. In fact, Convention and Visitor Bureau’s (CVB’s) work hard to attract these meetings and conventions to their city to drive economic benefit for hotels, restaurants, entertainment venues, etc.

There are several types of such events.

Conventions  generally have very large attendance, and are held on a regular schedule but in different locations. They also often require a bidding process.  Political conventions are one such example.

Association M eetings or C onferences are held regionally and nationally for hundreds of associations or events focused on specific themes. Examples would be the National Restaurant Association Annual Convention, ComicCon, or the National Auto Show.

Corporate M eetings will vary significantly in size and purpose and include regional or national sales meetings, shareholder meetings, training sessions, or celebrations. The location will vary depending on the nature of the meeting. They may be held at an airport property, a traditional corporate meeting facility or even an upscale resort.

Trade S hows and T rade F airs  can be stand-alone events, or adjoin a convention or conference.

S eminars , W orkshops , and R etreats are examples of smaller-scale events.

As meeting planners have become more creative, meeting and convention delegates have been more demanding about meeting sites. No longer are hotel meeting rooms and convention centers the only type of location used; non-traditional venues have adapted and become competitive in offering services for meeting planners. These include architectural spaces such as airplane hangars, warehouses, or rooftops and experiential venues such as aquariums, museums, and galleries. 24

Transportation and travel services are another large element of the tourism industry. This area includes cruise ships, airlines, rail, car rentals, and even ride sharing such as Uber and Lyft. Each of these segments is impacted significantly by fuel costs, safety issues, load factors and government regulation.

If you’ve ever been on a cruise, you are in good company. According to CLIA (Cruise Lines International Association), 23 million passengers were expected to go on a cruise worldwide on 62 member lines in 2015. 25 The industry employs over 900,000 people. 26

Over 55% of the world’s cruise passengers are from North America, and the leading destinations (based on ship deployments), according to CLIA are: 27

• The Caribbean (36%)
• The Mediterranean (20%)
• Northern Europe (11%)
• Australia/New Zealand (6%)
• Alaska (6%)
• South America (3%)

The t ravel services sector is made up of a complex web of relationships between a variety of suppliers, tourism products, destination marketing organizations, tour operators, and travel agents, among many others. Under the North American Industry Classification System (NAICS), the travel services industry group includes “establishments primarily engaged in travel arrangement and reservation services. Examples … are tourist and travel agencies; travel tour operators and wholesale operators; convention and visitors’ bureaus; airline, bus, railroad and steamship ticket offices; sports and theatrical ticket offices; and airline, hotel and restaurant reservation offices.” 28 Tourism services support industry development and the delivery of guest experiences.

Travel Agencies

A travel agency is a business that operates as the intermediary between the travel industry (supplier) and the traveler (purchaser). Part of the role of the travel agency is to market prepackaged travel tours and holidays to potential travelers. The agency can further function as a broker between the traveler and hotels, car rentals, and tour companies. 29 Travel agencies can be small and privately owned or part of a larger entity.

Online travel agencies (OTAs)

Online travel agents (OTAs) are companies that aggregate accommodations and transportation options and allow users to choose one or many components of their trip based on price or other incentives. Examples of OTAs include Booking.com, Expedia.com, Hotwire.com, and Kayak.com. OTAs are gaining popularity with the travelling public; in 2012, they reported online sales of almost $100 billion 30 and almost triple that figure, upward of $278 billion, in 2013. 31 Over 40% of U.S. travelers booked flights online in 2014. 32

Tour operators

A tour operator packages all or most of the components of an offered trip and then sells them to the traveler. These packages can also be sold through retail outlets or travel agencies. 33 Tour operators work closely with hotels, transportation providers, and attractions in order to purchase large volumes of each component and package these at a better rate than the traveler could by purchasing individually.

Destination marketing organizations (DMOs)

Destination marketing organizations (DMOs) include national tourism boards, state/provincial tourism offices, and community convention and visitor bureaus around the world. DMOs promote “the long-term development and marketing of a destination, focusing on convention sales, tourism marketing and service” 34 .

Country Clubs

Country c lubs are another part of the Hospitality industry with a very different service strategy focusing on serving members who will develop relationships with the staff compared to a more transactional service interaction in lodging, restaurants or airlines.

Country clubs do not focus as strongly on profit as they do on maximizing member satisfaction, retention and growth while maintaining an attractive fee structure. Country (or city) clubs, will typically have restaurant and bar operations, catered events and other amenities such as golf, tennis, pool, fitness facilities, etc. Depending on the type of club, family and youth events are important to maintain and grow membership.

Strong customer service, culinary, event management and general management skills are necessary to be successful in clubs.

Chapter Video

As in any other fast-moving industry, the landscape in Hospitality and Tourism is always changing. This video explores 10 of the more important current trends impacting the industry.

(Copyrighted material)

Key Takeaways

• The Tourism industry is the largest industry in the world with significant benefit and costs to a region. The global competition for the tourism dollar is significant within the US and between countries.
• Hotels vary significantly in size, quality, purpose, chain affiliation, and ownership. The complexity of the operation and leadership vary as well.
• Food and Beverage is made up of a wide variety of restaurant types from QSR, Fast Casual, Fine Dining and Ethnic. Institutional food service in business , hospitals, education, parks and concessions are a significant part of the Food and Beverage industry.
• The evolution of tastes and consumer expectations in food and beverage continue to provide opportunity and challenges in the industry for ethnic sustainable, organic, local, craft, and other unique experiences.

Chapter 16 References and Image Credits

Portions of this chapter were adapted from Westcott, Morgan (Ed)  Introduction to Tourism and Hospitality in BC.  CC BY 4.0  https://opentextbc.ca/introtourism  Available for free at:  http://open.bccampus.ca

Image Credits: Chapter 16

Figure 16.1: JackMac34 (2015). “Untitled.” Public domain. Retrieved from: https://pixabay.com/en/italy-burano-postcards-971575/

Figure 16.2: “The Impact of Global Tourism.” (2016) Data retrieved from: http://www2.unwto.org/content/why-tourism

Figure 16.3: Yellowute (2007). “Shirley Plantation.” Public domain. Retrieved from: https://commons.wikimedia.org/wiki/File:Shirley_Plantation_2006.jpg

Figure 16.6 “Example of a Hotel Market segmentation by STR’s chain scale” Author’s own work. Licensed CC BY 4.0 .

Figure 16.7: Christina Hsu (2009). “San Diego City and Bay at Night.” CC BY-NC-SA 2.0 . Retrieved from: https://flic.kr/p/6KZ5Cv

Figure 16.8: Anastasia Cortes (2016). “The Inn at Virginia Tech.” Public domain. Provided by author.

Figure 16.9: Dale Cruse (2014). “New Zealand langoustines at Troquet.” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/dalecruse/8551895022/

Figure 16.10: Imzadi1979 (2012). “An example of a typical American logo sign.” Public domain photograph. Retrieved from: https://en.wikipedia.org/wiki/Logo_sign#/media/File:Logo_Sign.svg

Figure 16.11: J. Winters (2008) “A Red Robin Restaurant in Tukwila, Washington.” Public domain photograph. Retrieved from: https://commons.wikimedia.org/wiki/File:Red_Robin_in_Tukwila,_Washington.jpg

Figure 16.12: “Le Procope.” © Michael Rys. CC BY-NC-SA 2.0 . Retrieved from: https://en.m.wikipedia.org/wiki/Restaurant#/media/File%3AInside_Le_Procope.jpg

Figure 16.13 “The restaurant industry career path” Author’s own work. Licensed CC BY 4.0 .

Figure 16 .15 : JohnSM (2013). “Rafting in Turkey.” Public domain. Retrieved from: https://pixabay.com/en/rafting-turkey-travel-1125213/

Figure 16 .16 : Graph data sources: Statista (2016). “ Number of commercial casinos in the United States from 2005 to 2013.” Retrieved from: http://www.statista.com/statistics/187972/number-of-us-commercial-casinos-since-2005/ and “ Global casino gaming revenue from 2006 to 2015 (in billion U.S. dollars).” Retrieved from: http://www.statista.com/statistics/271577/global-casino-gaming-market-revenue/ and “ U.S. casino gaming market revenue from 2004 to 2015 (in billion U.S. dollars) .” Retrieved from: http://www.statista.com/statistics/271583/casino-gaming-market-in-the-us/

Figure 16 .17 : Josh Hallett (2009). “ The ‘Big Bang’ at Wishes – Magic Kingdom – Walt Disney World .” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/hyku/3830182777

Figure 16.18: Peter23 (2011). “Beijing National Stadium.” CC BY- SA 3.0 . Retrieved from: https://en.wikipedia.org/wiki/Beijing_National_Stadium#/media/File:Beijing_national_stadium.jpg

Figure 16.19 : Skeeze (2014). “Mardi Gras in New Orleans.” Public domain. Retrieved from: https://pixabay.com/en/mardi-gras-new-orleans-festival-1176483/

Figure 16 . 20 : Roger W. (2012). “ Charlotte Amalie – Panorama (Postcard) ” CC BY-NC-SA 2.0 . Retrieved from: https://www.flickr.com/photos/24736216@N07/7170231567

Figure 16 . 21 : Dan Perry (2006). “Riviera Country Club in Pacific Palisades, California.” CC BY-NC-SA 2.0 . Retrieved from: https://en.wikipedia.org/wiki/Country_club#/media/File:Riviera_Country_Club,_Golf_Course_in_Pacific_Palisades,_California_(168828797).jpg

Video Credits: Chapter 16

Sisyanti, Ling Ling, Wasim Amsal,Ella Qiu, and Rebecca Catherine Stephany. “10 trends in Hospitality and Tourism Industry.” February 6, 2015. Retrieved from:  https://www.youtube.com/watch?v=SJ8Momwv7Qk 

References: Chapter 16

Chapter 16 Hospitality & Tourism Copyright © 2018 by Richard Parsons; Stephen Skripak; Anastasia Cortes; Anita Walz; and Gary Walton is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Benefits of a Career in Hotel Management

Is hotel management a good career.

The hospitality and tourism industry demands driven, social and passionate people who understand the importance of making clients feel at home – whether they’re at a hostel or a five star hotel. This industry also requires multicultural awareness and sensitivity, as many sectors of the industry will work with international clients. Discover what the industry can offer you and why a hospitality and tourism internship is the best way to test drive this exciting career. 

Benefits of a career in Hospitality

1. it’s a very humanist profession.

Hospitality is all about making people feel welcome. You’re focusing your energy into a person, their experience and their connection to a new place. This is extremely rewarding when you see that you’ve done a good job.

2. More options for adventure and travel

There are hospitality and tourism jobs all over the world for people who speak English, so the career path makes travel and life abroad possible. Moreover, the jobs will be located in all of the exciting tourist hot spots all over the globe !

3. It’s not your typical 9-5 in the office

Hospitality and tourism jobs are not going to offer the same schedule as the corporate world because they are dealing oftentimes with people who are on holiday. An alternative schedule has perks. Moreover, hospitality jobs are often seasonal, so throughout the year the workload will ebb and flow.

4. Fun atmosphere

Hospitality and tourism professionals are often dealing with people who are on vacation – people who want to have fun, relax and escape the working world. An upbeat atmosphere means a happy workplace environment, making hospitality and tourism jobs great for positive, perky people.

5. Diverse industry

Hospitality and tourism is a diverse industry that encompasses many different sectors. A career in hospitality and tourism could take you towards working in event planning and management, hotels, restaurants or travel and tourism.

6. You can share culture

There are people from all over the world and all walks of life working in the hospitality and tourism industry. The sector also tends to attract people interested in sharing with people from other cultures, since many people are visiting a new country. It’s exciting to be able to meet and interact with clients (and colleagues) from all over the world.

How to get an internship at a hotel?

Teamwork, flexibility, great communication and a positive attitude are necessary skills for success in the hospitality and tourism industry. A hospitality internship will boost these soft skills through real-world industry experience.

Experience abroad will also develop your interpersonal skills with people from many different cultural backgrounds, as in many hospitality and tourism positions you’ll need to interact with people from all over the world.

The Intern Group offers hospitality, events and tourism internships in over nine global cities, like London , Madrid , New York , Melbourne , Hong Kong , and Medellín . These internships are oftentimes at hotels or event planning firms and teach interns how the industry works.

If you are ready for a life-changing experience, apply today for your internship abroad! 

Ready to realize your potential?

Related posts.

Sustainability in Hospitality: Why It Is Important and How Industry Leaders Can Help

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Most people won’t feel good about a vacation if they know it’s adding to the Great Pacific Garbage Patch, a stretch of trash piling up in the ocean for thousands of miles. Nor will they feel positive about booking a vacation connected with an organization known for disregarding a local economy’s well-being. The idea of enjoying oneself at the expense of others’ meeting their basic needs doesn’t sit well with most people.

Sustainability — the mindful use of a resource so that it isn’t used up or damaged — plays a vital role in the hospitality industry. Hospitality organizations’ success depends on their preserving the natural and cultural attractions that compel tourists to visit their destinations. Not doing so has consequences. In 2018, the Thai government shut down one of its most famous beaches, Maya Bay, for three years after daily visits of 5,000 tourists ended up destroying most of its coral and threatening the very beauty that drew people to the area in the first place. Local tourism operators went out of business.

With the right leadership, hospitality organizations can adopt sustainable business strategies. Sustainability-minded hospitality leaders can also improve efficiency and attract a growing number of customers looking for environmentally and socially responsible products and services. Pursuing an online leadership and management degree or certificate can prepare professionals to lead their organizations to success through sustainability in hospitality.

Why Sustainability in Hospitality Matters

“All tourism relies on the natural and cultural resources that attract tourists and act as the main driver of growth and development in the tourism economy. Some destinations, such as those in the Caribbean, rely on pristine beaches and crystal clear waters to bring in tourists. Others, such as Paris, rely on their cultural heritage—architecture, museums, cuisine—to drive tourist visits,” explains Sergio Alvarez, assistant professor at the University of Central Florida’s Rosen College of Hospitality Management. “As diverse as these destinations may seem, they all share one thing in common: the attractions that make them world-class destinations are threatened by human activity, and in many cases, tourism itself is a main threat to these attractions.”

Sustainable practices make hospitality organizations stand out. Today’s travelers, restaurant patrons, hotel bookers and shoppers care about sustainability. They want to know that the companies they give their business to follow environmentally, socially and culturally sound practices. An overwhelming majority of millennials and Generation Zers will pay more for products and services that don’t harm the environment, deplete natural resources, or negatively affect the lives of people or wildlife.

As a case in point, a Nielson study found that nearly 75% of the respondents from these younger generations are willing to take action to support this attitude. A growing number of people from older generations also want companies to become environmental stewards. In fact, the Nielson study found that 51% of baby boomers will spend more for sustainable products and services as well. To stand out, hospitality organizations can focus on a few key aspects:

Conserving Energy

Energy conservation in the hospitality industry entails a two-pronged approach: reduction and efficiency. Organizations can start by training employees in behaviors that reduce energy use. These behaviors can range from turning off lights to changing the settings on washing machines and adjusting thermostats appropriately. Energy conservation may also include friendly reminders to guests about their use of towels or electricity. For efficiency, organizations can look for opportunities to use green technology or products. For example, they can install solar panels for heating and cooling or switch to energy-efficient LED lights.

Reducing Waste

Organizations have numerous opportunities to limit their waste. To cut down on food waste, companies can source their food locally or grow it on site. This reduces how much food spoils and ensures fresher products. Businesses can also adopt food-donation policies that let patrons know unused food will make it to the local food kitchen as opposed to just being discarded. Installing water-efficient products, such as water-saving filters, can also make a difference in reducing waste.

Using Organic Amenities

“At a global level, tourism is responsible for 8% of carbon emissions, which are causing changes in our climate and rising sea levels,” notes Alvarez. “Tourism’s substantial carbon footprint is not only caused by transportation of tourists, but also by the production and transportation of supplies such as food, beverages, towels and linens that are a must-have in every hotel.”

Organic products leave a lighter carbon footprint than others. By switching to organic, businesses demonstrate a commitment to sustainability. Organic amenities can include products made of all-natural ingredients and no harsh chemicals. For example, hotel toiletries, cleaning supplies, food and fragrances can all come in organic forms. Additionally, organizations can choose products that come in recyclable packaging or biodegradable cartons. Incorporating sustainable strategies into how an organization operates not only makes a good impression and potentially saves money; it can also protect the natural and cultural attractions guests have come to see.

The hospitality industry must ensure it works in harmony with the environment and is mindful of its social and economic impact by not overconsuming resources, working to conserve biodiversity, not polluting, and respecting local communities and workers. In doing so, the industry protects its very existence. For this reason and others, sustainable tourism has emerged. This practice showcases the environment and focuses on protecting ecological processes and conserving a location’s natural heritage. It also shows respect to host communities and works toward building cultural understanding with them.

The Benefits of Sustainability in Hospitality

Practicing sustainability in hospitality comes with many benefits. Aside from attracting more customers and responding responsibly to what many consider a moral imperative, in light of the current climate crisis, sustainable initiatives offer hospitality businesses incentives.

The federal government, along with states and some local governments, have enacted several programs to promote “green” business. Using renewable energy, reducing waste and implementing measures that enable reuse and recycling can add up to more than just energy conservation. Incentive programs reward businesses with tax write-offs, discounts on insurance premiums, financial grants and faster regulatory permitting. In addition, innovative, environmentally friendly technology can result in long-term cost savings. Though sustainable practices can require initial spending, the combined effects of energy efficiency, waste reduction and the like can lead to spending less money in the long run.

Many hospitality organizations have adopted sustainability plans. This intentional approach involves incorporating sustainable practices that reach across all business operations. Sustainability plans can help improve brand image. Most consumers care about sustainability, according to a recent Trip Advisor survey. It found that 62% of travelers had opted for more environmentally friendly hotels, food and transportation, and 69% of survey respondents said they intended to make even more environmentally responsible travel choices in the future.

In tourism, for instance, people often vote with their feet. If tourists learn that a business does not take the necessary steps to eliminate or significantly reduce its negative impact on the environment, this information will affect their perception of the company brand. Conversely, when organizations demonstrate their commitment to green practices, they can improve their brand image and draw more tourists. Additionally, business cultures that embrace sustainability can also better attract the elite work talent of younger generations looking for companies who share their values.

The Role of Leadership in Sustainability

How can the hospitality industry ensure it fully embraces sustainability? Leaders in this sector can play a key role by integrating sustainability concepts into their business goals and strategies.

Establishing Energy Management Programs

First, hospitality leaders can put energy management programs into place. These programs can involve creating a team responsible for setting up energy conservation plans with specific goals. For example, the team might strive to reduce the company’s energy use by 10% within a year. To help reach the goals, leaders might reward departments or individuals in the organization for reaching their milestone objectives.

Evaluating Energy Usage

Leaders can take another important action toward sustainability: determining how their businesses use energy. A clear understanding of energy usage allows leaders to identify areas for improvement. For example, in what area of a hotel is the most energy being used? Are there ways to reduce energy use in that area without negatively affecting guest experience? Additionally, leaders can routinely evaluate their energy use, seeking out energy-saving practices to improve efficiency and ultimately cut costs.

Embracing Renewable Energy

Besides reducing energy consumption and evaluating how energy is used in their businesses, hospitality leaders can reduce their business’ carbon footprint by embracing renewable sources of energy. In addition to building their brand image as a sustainable hospitality business, these investments pay off by reducing operational costs. For instance, back in 2015, the La Quinta Inn & Suites in Danbury, Connecticut, installed 400 solar panels on the property’s rooftops to generate 132,000 watts of solar electricity. By 2016, the property was saving approximately $1,500 a month in its energy bill, in addition to receiving approximately $16,000 in sales of electricity back to the grid.

Educating Employees

Sustainability in business requires a group effort. Educating employees and raising awareness about sustainable practices should play a part in onboarding and ongoing training. Every aspect of a business can adopt practices that take sustainability into account, considering such things as water and waste management, the use of organic products that do not contain harmful chemicals, and reuse and recycling. In this way, sustainability can become a part of an organization’s culture.

Directing an organization toward sustainability requires key skills. Hospitality leaders must inspire the people in their organizations to embrace sustainability as they work toward meeting expectations. To do this, hospitality leaders must excel in open communication, clear goal setting, positivity, teamwork, and being open to new ideas.

Challenges and Trends

While sustainability in hospitality offers clear advantages, professionals in this industry must still overcome challenges to build sustainable strategies. For one, they must correct misconceptions that sustainability costs more money and that consumers do not care about it, when in fact becoming more energy-efficient saves money and developing a brand known as sustainable attracts more patrons.

Advances in technology related to renewable energy have also lowered the costs for using sources such as solar or geothermal energy. Additionally, tour operators who protect ecosystems that serve as their main attraction, while cooperating with and supporting local economies and culture, also win financially in the long run. Some organizations worry sustainable practices can disrupt guest experience. However, if organizations carefully focus on what guests need and customize their services accordingly, they can improve this aspect of their business. Hersha Hospitality Trust, which owns 48 upscale hotels, has instituted sustainability initiatives that actually enhance customer experience, including:

• Smart thermostat technology in each room that allows guests to customize temperatures while lowering energy use
• Recycling options in guest rooms that allow guests to maintain their green habits while away from home
• Locally sourced foods and products that allow guests to support local vendors and try something unique to the area
• Free access to bicycles that allow guests to both get around and explore the new area while reducing their carbon footprints

Hospitality leaders can incorporate other current and emerging trends into their sustainability strategies, such as:

• Eliminating single-use plastic
• Creating paperless environments
• Sourcing from sustainable suppliers
• Purchasing green cleaning supplies
• Developing recycling programs

Explore How to Become a Hospitality Leader in Sustainability

“It is clear that tourism causes problems. However, leaders in hospitality and tourism have the power to be part of the solution, rather than being a part of the problem,” says. Alvarez. “The three pillars of sustainability — social, environmental, and economic — provide a roadmap for visionary leaders to transform their businesses and ensure that our cherished natural and cultural attractions are available for future generations of tourists to enjoy.”

The growing importance of sustainability in hospitality is obvious. Today’s hospitality organizations need leaders who can help implement sustainable practices and build a culture of social, environmental and economic responsibility. The University of Central Florida offers the following degree and certificate programs that prepare graduates to thrive in different areas of the industry:

• Destination Marketing and Management
• Event Leadership, MS
• Event Management
• Event Management, BS
• Financial Management for the Hospitality and Tourism Industry
• Hospitality and Tourism Management, MS
• Hospitality and Tourism Technologies
• Hospitality Management, BS
• Leadership and Strategy in Hospitality and Tourism
• Lifestyle Community Management, BS
• Lodging and Restaurant Management, BS
• Travel Technology and Analytics, MS

Explore how the University of Central Florida’s online leadership and management degrees and certificates can help aspiring hospitality leaders pursue their professional goals.

Online Leadership and Management Degrees at UCF

• Career and Technical Education, BS
• Career and Workforce Education, MA
• College Teaching and Leadership
• Corrections Leadership
• Educational Leadership, MA
• Emergency and Crisis Management, MECM
• Engineering Management, MS
• Health Informatics and Information Management, BS
• Health Services Administration, BS
• Industrial Engineering, MSIE
• Local Director of Career & Technical Education
• Master of Public Administration, MPA
• Nonprofit Management
• Nonprofit Management, MNM
• Police Leadership
• Project Engineering
• Public Administration

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