tourism and hospitality industry definition

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.

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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

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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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BUSINESS OF LUXURY

HOSPITALITY UNCOVERED

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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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What is hospitality?

Hospitality means extending a welcome to guests or offering a home away from home, and the word is derived from the Latin word “hospes” meaning host, visitor or stranger. The hospitality and tourism industry is a vast sector that includes all the economic activities that directly or indirectly contribute to, or depend upon, travel, tourism and hospitality.

This industry sector includes:

• Hotels & Resorts
• Restaurants & Catering
• Night Clubs & Bars
• Travel & Transportation
• Spas & Wellness
• Cruise Liners & Bus tours
• Cultural & Sports
• Business Administration (events, communication, customer experience, and many more )

Bachelor of Science in International Hospitality Management

Discover the EHL Bachelor's program meticulously crafted by our Hospitality Management School to meet the evolving needs of the hospitality and tourism industry.

Our curriculum strikes a balance between hands-on experience, academic excellence, and business acumen. It also provides a unique opportunity for students to study in two premier locations: Switzerland and Singapore.

Immerse yourself in practical courses, workshops and two six-month internships, providing real-world insights aligned with industry demands.

The History of Hospitality & Tourism 

Hospitality is one of the oldest businesses, going way back to the innkeepers and taverns of biblical times. Tourism, on the other hand, is a more recent invention which began in Europe, with Switzerland being one of the first countries to develop special accommodation and services for travelers. 

In the late 1800’s, the concept of leisure tourism and hospitality spread across Europe, bringing flocks of wealthy travelers to Switzerland. It began with visitors seeking cultural and natural exposure on guided tours in the Swiss Alps, train rides and wellness tourism. Palace-style hotels, thermal baths and ski resorts became icons of luxury tourism in Switzerland.

This new generation of wealthy guests had higher expectations for comfortable accommodations, convenient services and fine dining. The leisure travel phenomenon gave birth to hospitality management schools: EHL was founded as the first hotel management school in 1893 in Lausanne, and it has pioneered in hospitality management education since then.

Hospitality is one of the most resilient, adaptable and dynamic industries on the planet. It is an industry of constant change, where technology and innovation are being integrated to improve the guest experience.

What is Tourism and Hospitality Management?

Careers in hospitality management.

Hospitality management is a broad career field that provides many opportunities for international career progression. In the core of the hospitality industry alone (hotels, events, restaurants, etc.) graduates with a hospitality degree can become managers in a variety of departments and sectors, or choose to specialize in one area.

The career paths are as diverse as the industry, and with so many new hospitality concepts and innovation changing the industry, the career paths will continue to grow and evolve with technology and trends of the 21st.

Hospitality education at EHL teaches students to love learning because it takes a scientific approach that sparks curiosity and involves the five senses. 

What are Hospitality Management Skills?

Studying at ehl, the world's 1st hospitality management school.

In the field of hospitality management, customer satisfaction is key, and the primary goal is to ensure the best customer experience possible. Therefore, hospitality management courses teach both professionally-focused hard skills (room pricing, cost-control, accounting, scheduling, etc. ) and soft skills which are related to how one acts, and interacts in a professional environment.

Training for soft-skills is critical to succeed in the 21st century: critical thinking, agility and adaptability, effective communication, imagination and curiosity: these are all skills students develop at EHL in our hospitality management courses and degrees.

#hospitality-industry

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Before engaging in a study of tourism, let’s have a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be defined, and for this reason, 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:

Tourism is 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 (United Nations World Tourism Organization, 2008).

Using this definition, we can see that tourism is not just the movement of people for a number of purposes (whether business or pleasure), but the overall agglomeration of activities, services, and involved sectors that make up the unique tourist experience.

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism, travel, and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO (2020) defines travel as the activity of moving between different locations often for any purpose but more so for leisure and recreation (Hall & Page, 2006). On the other hand, hospitality can be defined as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, p. 3). 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 (Go2HR, 2020). You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4 , respectively.

Definition of Tourist and Excursionist

Building on the definition of tourism, a commonly accepted description of a tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

• Domestic (residents of a given country travelling only within that country)
• Inbound (non-residents travelling in a given country)
• Outbound (residents of one country travelling in another country)

Excursionists on the other hand are considered same-day visitors (UNWTO, 2020). Sometimes referred to as “day trippers.” Understandably, not every visitor stays in a destination overnight. It is common for travellers to spend a few hours or less to do sightseeing, visit attractions, dine at a local restaurant, then leave at the end of the day.

The scope of tourism, therefore, is broad and encompasses a number of activities and sectors.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 159 countries and over 500 affiliates such as private companies, research and educational institutions, and non-governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website .

NAICS: The North American Industry Classification System

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):

• Accommodation
• Food and beverage services (commonly known as “F & B”)
• Recreation and entertainment
• Transportation
• Travel services

These industry groups (also commonly known as sectors) are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, 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. The same is true of the other four groupings, and the rest of this text explores these industry groups, and other aspects of tourism, in more detail.

It is typical for the entire tourist experience to involve more than one sector. The combination of sectors that supply and distribute the needed tourism products, services, and activities within the tourism system is called the Tourism Supply Chain. Often, these chains of sectors and activities are dependent upon each other’s delivery of products and services. Let’s look at a simple example below that describes the involved and sometimes overlapping sectoral chains in the tourism experience:

Before we seek to understand the five tourism sectors in more detail, it’s important to have an overview of the history and impacts of tourism to date.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

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Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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What Is the Hospitality Industry? Your Complete Guide

What does hospitality mean? What is the hospitality industry, exactly? Where and how did it begin? This post answers all those questions and more as we explore the past, present, and future of hospitality. As we dive deeper into what the industry entails, you’ll discover how hospitality impacts employers, employees, economies, consumers, the environment, and so much more. Whether you’re curious about which businesses are part of the industry, what they do, or how to start a career in hospitality, you’ve come to the right place.

What is the hospitality industry? 

The hospitality industry is a massive business sector. Casting a broad umbrella, it encompasses all economic and business activities that rely upon or contribute to travel and tourism. Hospitality-focused businesses like hotels and travel agencies contribute directly by providing essential services that enable travel and tourism. Suppliers, transportation services, and catering companies may indirectly contribute by delivering the goods and services necessary to keep the industry running; however, they do not solely rely on hospitality for their revenue.

Because the hospitality industry is so expansive, it includes a diverse spectrum of companies, businesses, and experts. Even with so much variety, most hospitality businesses fall into one of four categories.

1. Travel & tourism (T&T)

Although many people think travel and tourism are synonymous with hospitality, that’s not quite the case. More accurately, T&T is a specific category within the hospitality industry. It includes airlines, shuttle services, travel agents, destination marketing organizations (DMOs) , and other businesses or services that help facilitate the physical travel necessary for tourism. Those working in T&T help drive tourists, workers, and businesses to new destinations.

2. Accommodation 

One of the largest and most diverse parts of the hospitality industry is the accommodation sector, which includes everything from lodging to event grounds and special event venues. Numerous different types of hotels and venues fall into this sector, including:

• Chain hotels
• Extended stay properties
• Boutique hotels
• Conference and convention centers
• Wedding venues
• Casinos/casino suites

3. Food & beverage (F&B)

Most hotels and resorts offer their guests some form of food or dining option. Whether operating a café, buffet breakfast, or full-service restaurant, food and beverage services are integrated directly into many hospitality-based businesses. Stand-alone F&B providers, like restaurants or food trucks, operate independently, but they also have a part to play in the local hospitality scene.

Event catering, quick-service establishments, full-service restaurants, and limited-service F&B are powerful revenue drivers contributing to the hospitality industry. In addition to serving in-house hotel guests, F&B is a critical component of meetings and events, from private parties, like birthdays or weddings, to large-scale corporate events .

4. Recreation & entertainment 

Because businesses in the hospitality industry often rely on consumers’ disposable income, they market to customers’ desire for entertainment that refreshes the mind, body, and spirit. In addition to lodging, travel services, and culinary delights, hospitality is full of indoor and outdoor recreation.

Bars, nightclubs, theaters, stadiums, museums, zoos, and other attractions often act as special event venues and tourist attractions, helping to drive a destination’s economy . Spectacular outdoor spaces, including our national and state parks , attract travelers from near and far to feed their local markets.

Whether providing a memorable meal or a relaxing day at the spa, the true purpose of hospitality is to ensure that the customer has an enjoyable experience —whatever they do.

But how did it all get started? How far back do the roots of the hospitality industry actually go? 

When did the hospitality industry begin? 

Although hospitality doesn’t have a designated start date, its traditions date back thousands of years. Ancient symbols of hospitality exist worldwide, with the oldest signs discovered in French caves dating back to 15,000 BCE . Historians and archeologists believe early humans designed the caves to welcome guests and greet visiting tribes.

Xenia, a phrase translating to “the sacred rule of hospitality,” is another early sign of the tradition. In ancient Greece, the custom expressed the law or expectation that hosts would offer protection and kindness to strangers . The Greeks understood that a satisfactory hospitality experience relied on hosts respecting their guests and vice versa. Furthermore, they believed displaying proper hospitality was “fundamental to human civilized life.” Modern hospitality may not look like it did thousands of years ago, but its purpose remains the same.

Is the hospitality industry growing?

Pre-pandemic, the hotel and motel industries (i.e., hospitality) employed approximately 173 million workers . In our primarily post-pandemic world, the hospitality industry and its partners remain massive global employers. 2022 brought 22 million new jobs to the sector, representing an almost 8% increase since 2021. In 2023, the hospitality positions accounted for one of every ten available jobs .

Although many hospitality-focused businesses (e.g., hotels and restaurants) still face staffing shortages , the industry remains one of the largest global employment sectors. From 2022-2023, the international hospitality industry’s value grew at a compound annual growth rate of 7% . The rebound illustrates consumers’ desire to travel again and return to in-person events after restrictions were lifted. Paralleling this demand increase, the World Travel and Tourism Council estimates that the hospitality industry will create 126 million more jobs by 2032 .

How does the hospitality industry impact the environment? 

In 2022, the hospitality industry was responsible for approximately 1% of global carbon emissions . Single-use plastics, high water consumption, energy usage, and excess waste are just a few ways hotels negatively affect their local environment and the overall climate.

To demonstrate a commitment to sustainability , social responsibility, and shifting consumer preferences, the industry is becoming greener through robust global initiatives and innovative day-to-day practices, like these eco-friendly hotel ideas . As consumer attitudes towards environmental conservation and sustainability strengthen, being eco-friendly is no longer optional for most businesses; it’s necessary.

Why work in hospitality? 

If you enjoy making other people happy, hospitality might be right for you. It’s an industry where employees work together to create a welcoming atmosphere, satisfy customers, impress hotel guests , and create an exceptional visitor experience. With hotel, events, dining, planning, travel, custom service, and a wide variety of other roles available, there’s an opportunity for every worker and every personality type.

Hospitality is also a dynamic, fast-paced, and ever-changing field. Just as every guest is different, so is every day working in the industry. Whether working in a hotel or nightclub, you get to encounter diverse types of people with varying backgrounds from all over the world. As you connect with various guests and strive to meet their needs, you’ll get exposed to new cultures and expand your life experience.

Additionally, hospitality offers more flexible scheduling than many other industries, as hospitality businesses often operate outside of traditional 9 a.m. to 5 p.m. office hours. Many young people flock to hotels, restaurants, and similar businesses because of the work-life balance they provide. Working in the industry also comes with a diverse range of perks, such as discounted travel, competitive pay rates, and numerous opportunities to advance your career. 

Become an expert on all things hospitality

How do you get a job in the hospitality industry?

There are many different paths you can take to begin a hospitality career. While some employees start at an entry-level position and work up the ranks, others translate their past professional experience into a hospitality-focused career. Increase your chances of building a successful career in the hospitality industry by:

1. Identifying which hospitality sector best suits you

The hospitality industry includes diverse careers and professions, making it an excellent sector for workers with various skills and personality types. Whether you’re an introvert who prefers to work alone or a bubbly, conversational individual, hospitality has something for everyone. If you want to work in a hotel, consider which department or position best fits you.

• Front desk: Front-facing, customer-focused positions, great for outgoing personality types
• Housekeeping: Back-of-the-house positions, perfect for task-oriented or meticulous employees 
• F&B: Front-facing and back-of-house positions available, often working in a busy, high-stress environment 
• Maintenance: Skill-based and goal-focused positions that require big-picture thinkers with excellent task-management skills 
• Meetings and events: A range of primarily forward-facing positions available for event planners, organizers, coordinators, and more

2. Knowing where to look 

As customer service lies at the heart of hospitality, it’s common for professionals to turn to members of their local network for references, recommendations, and referrals. Many entry-level hospitality jobs are shared through local and employee referrals, the hiring manager’s professional network, or an individual’s social media accounts.

If you already know where you want to work, get to know the people there. Introduce yourself to the management team at hotels, restaurants, and other venues that interest you. If you’re not sure where to start, there are a variety of hospitality employment resources available, including:

• Online advertisements. Online job ads are especially beneficial if you’re new to the industry or a particular destination. If you lack first-person word-of-mouth recommendations, breaking into your local industry may feel intimidating. Keep an eye out for online ads on job boards, local news sites, and search engine results to streamline your search.
• Social media pages. Follow venue Facebook pages, join local hospitality groups, and keep a close eye on the Instagram pages of the hotels or destinations where you want to work. Regularly check social media, scanning for links to external job sites or brand listings.
• Hospitality Online
• iHireHospitality  
• Hospitality Crossing
• Hospitality Confidential
• Wyndham Careers  
• Hyatt Careers
• Marriott International Careers
• Jobs at Hilton
• IHG Careers
• Accor Careers  
• OYO Careers
• Staffing agencies. Staffing and temporary work agencies are fantastic resources for helping individuals get their foot through the door. Although there are various hospitality-specific staffing agencies, like Hospitality Staffing Solutions , it’s also common for local staffing agencies to work directly with nearby hotels as they help fill entry-level positions in guest service, housekeeping, maintenance, and other departments.

3. Expanding your hospitality knowledge

Become a go-to person for all things hospitality, from industry trends to the latest marketing techniques. Stay current on the latest to remain relevant in an increasingly competitive field.

4. Keeping up with industry certifications

Having credentials can significantly impact how quickly you land your dream travel job. Show other hospitality professionals that you’re serious about a career in the industry by holding various certifications, like HubSpot Academy’s Inbound Marketing Certification , a certificate in hospitality revenue management (CRHM), or ServSafe certifications for those involved on the F&B side.

5. Determining your career path 

After exploring the wide and wonderful world of hospitality, pick a career path you’re enthusiastic about. Instead of thinking about where to start, consider where you’d like to go in the industry. Visualizing where you want to end up can help determine which steps you should take to advance your career down a path that speaks to you.

Now you know what the hospitality industry is and why it matters! 

With a better understanding of how far hospitality extends and its immense influence worldwide, it’s easy to see why the industry is growing. To learn more, join us as we examine the most significant trends impacting the hospitality industry in 2023 .

Kim Campbell

Kim is a full-time copy and content writer with many years of experience in the hospitality industry. She entered the hotel world in 2013 as a housekeeping team member and worked her way through various departments before being appointed to Director of Sales. Kim has championed numerous successful sales efforts, revenue strategies, and marketing campaigns — all of which landed her a spot on Hotel Management Magazine’s “Thirty Under 30” list.

Don’t be fooled though; she’s not all business! An avid forest forager, post-apocalyptic fiction fan, and free-sample-fiend, Kim prides herself on being well-rounded.

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In-Depth Guide to Understanding the Hospitality and Tourism Industry

Hospitality vs. Tourism, Industry Growth

When you hear about hospitality and tourism , think of them as two sides of the same coin. Hospitality focuses on the services that make people feel welcome and cared for, like staying in hotels or eating at restaurants. Tourism is all about the travel experiences and adventures people have away from home, including visiting attractions or going on tours.

The hospitality and tourism industry is a bustling world, filled with endless opportunities for adventure, relaxation, and exploration. It’s one of the fastest-growing industries globally, driving economies and creating millions of jobs. Whether it’s the charm of a local bed and breakfast, the splurge at a luxurious resort, the thrill of a theme park, or the convenience of a flight, this industry touches the lives of almost everyone.

For real estate investors eyeing the short-term rental market through platforms like Airbnb and VRBO, understanding the nuances between hospitality and tourism can unlock potential opportunities. It’s about creating memorable experiences that go beyond just a place to stay. The industry’s growth signals a promising avenue for returns on investment, emphasizing the importance of individualized service and tailored strategies for success.

This industry is about delivering comfort and experiences. With the right approach, property owners can not only contribute to this vibrant sector but also thrive within it.

Understanding Hospitality and Tourism

Definitions

At its core, hospitality is about providing a welcoming and caring environment for people who are away from home. This can range from a cozy bed-and-breakfast to a luxurious resort, from a quick service restaurant to a fine dining establishment. Hospitality is all about service, comfort, and making guests feel valued and cared for.

Tourism , on the other hand, is the act of traveling to and exploring places outside of your usual environment. It can be for leisure, like a vacation to see the world’s wonders, or for business, such as attending a conference in a different city. Tourism includes activities like sightseeing, experiencing local cultures, and attending events.

Differences

While hospitality and tourism are closely linked, they have distinct differences. Hospitality focuses on the services provided to guests, whereas tourism is concerned with the activities and experiences of those traveling. Think of tourism as the journey and exploration, while hospitality is about the stay and comfort during that journey.

Interconnection

Despite their differences, hospitality and tourism are deeply interconnected. Excellent hospitality services enhance the tourism experience, making destinations more attractive to visitors. For example, a memorable stay at a hotel or an exceptional dining experience can turn a good vacation into an unforgettable one. Conversely, a vibrant tourism sector boosts the hospitality industry by increasing the demand for lodging, food, and entertainment services.

Hospitality acts as the backbone of tourism; it’s what makes tourists feel welcome and ensures their needs are met during their travels. This synergy is crucial for the success and growth of both sectors.

The Importance of Both

Understanding the nuances between hospitality and tourism, and how they complement each other, is vital for anyone looking to build a career or business in these industries. The growth and dynamism of hospitality and tourism offer endless possibilities for innovation, career development, and contributing to the global economy. By recognizing the unique aspects of each sector while leveraging their interconnection, professionals can create more enriching experiences for travelers and guests alike, driving the industry forward.

In summary, hospitality and tourism are two sides of the same coin, each playing a critical role in the travel experience. While they have their distinct characteristics, their success relies on their ability to work together to provide unforgettable experiences for travelers around the world.

Moving forward, let’s delve into the Key Sectors in Hospitality and Tourism to further explore the diverse opportunities and challenges within these vibrant industries.

Key Sectors in Hospitality and Tourism

Hospitality and tourism encompass a wide range of services and experiences that cater to travelers and guests. This section highlights the core sectors: Lodging, Food and Beverage, Travel, Attractions, and Events . Understanding these sectors is crucial for anyone looking to build a career or invest in the hospitality and tourism industry.

Lodging refers to places where travelers can stay overnight, ranging from hotels and resorts to bed and breakfasts and vacation rentals. The lodging sector is foundational to hospitality, providing a ‘home away from home’ for travelers. Success in this sector hinges on excellent customer service, comfort, and creating memorable experiences. For instance, Emily Groves, a success story from MTSU’s Tourism and Hospitality Management (THM) program, showcased her versatility in event planning within the lodging sector, significantly contributing to guest satisfaction.

Food and Beverage

The Food and Beverage (F&B) sector is all about culinary experiences. It includes restaurants, cafes, bars, and any establishment offering food and drink services. This sector is characterized by its diversity, from fast food to luxury dining experiences. It’s not just about the food; it’s about the service, atmosphere, and overall dining experience. The F&B sector requires a keen understanding of culinary arts, customer preferences, and efficient operations.

This sector encompasses the means of getting to and from destinations. It includes airlines, cruise lines, car rentals, and public transportation. The travel sector is integral to tourism, connecting different parts of the world and making destinations accessible. Companies in this sector often work closely with lodging and attractions to create packages and itineraries for travelers. For example, collaborations between local businesses and travel influencers can significantly enhance visibility and appeal.

Attractions

Attractions are the landmarks, natural wonders, theme parks, museums, and cultural sites that draw tourists to a destination. This sector is vital for its ability to enrich the travel experience through entertainment, education, and leisure activities. Attractions often serve as the primary reason for choosing a destination, highlighting the importance of preserving and promoting these sites.

The Events sector includes conferences, trade shows, weddings, festivals, and any organized gatherings. This sector is dynamic, requiring meticulous planning, coordination, and marketing to ensure successful and memorable events. It offers diverse opportunities, from event planning to logistics and vendor management. Engaging in coursework and connecting with professors, as advised by Emily Groves, can provide invaluable insights and skills for success in this sector.

Each of these sectors offers unique challenges and opportunities. Whether it’s providing luxury lodging, crafting exquisite dining experiences, facilitating travel, managing attractions, or organizing events, professionals in hospitality and tourism need a blend of skills, including communication, customer service, and adaptability. The industry is evolving, with sustainability and technology becoming increasingly important. Aspiring professionals should stay informed about industry trends, seek relevant education and training, and embrace diverse opportunities to succeed in this vibrant field.

Moving forward, we’ll explore the Career Opportunities in Hospitality and Tourism , highlighting the various paths one can take within this exciting industry.

Career Opportunities in Hospitality and Tourism

The hospitality and tourism industry is a world of opportunities for those passionate about creating memorable experiences for others. Whether you’re drawn to the kitchen’s heat or the thrill of organizing large events, there’s a place for you. Let’s dive into the different career paths available.

Hospitality and Tourism Management

In the realm of hospitality and tourism management , professionals keep hotels, resorts, and tourism offices running smoothly. This could mean ensuring guests have the best stay possible at a hotel or making sure a tourist office effectively promotes local attractions.

Managers in this sector need a mix of management, marketing, and operations skills . They might find themselves analyzing financial reports one day and brainstorming marketing strategies the next. It’s a role for those who love variety and challenges.

Culinary Arts and Hospitality

For those who find joy in food and drink, the culinary arts and hospitality sector offers a bounty of career paths. Chefs and restaurant managers are the stars here, crafting delicious dishes and ensuring restaurants run without a hitch.

It’s not just about cooking; it’s about creating experiences. Chefs today are innovators and artists, constantly exploring new culinary landscapes. Restaurant managers, on the other hand, make sure that the service matches the quality of the food, leading teams to provide exceptional customer experiences.

Event Planning and Management

Event planning and management is a field for those who love to see a plan come together. From weddings to conferences and trade shows , event planners are the architects of experiences, crafting memorable moments for attendees.

This role demands creativity, meticulous organization, and the ability to manage stress. Event planners juggle various tasks, from choosing the perfect venue to coordinating vendors and managing budgets. It’s a career for those who get a thrill from bringing people together and making events happen.

Each of these career paths in hospitality and tourism offers a unique set of challenges and rewards. Whether you’re managing a hotel, running a kitchen, or planning the next big conference, your work contributes to the rich tapestry of experiences that define the hospitality and tourism industry.

Success in these fields requires a blend of hard skills and soft skills, from technical knowledge to excellent communication and customer service. And with the industry’s growth, the opportunities for advancement are vast. So, if you’re passionate about hospitality and tourism, there’s no better time to start your journey.

Moving on, we’ll delve into the Essential Skills for a Successful Career in Hospitality and Tourism , highlighting what it takes to thrive in this dynamic industry.

Essential Skills for a Successful Career in Hospitality and Tourism

The role of education and training.

To succeed in hospitality and tourism, you need more than just a love for travel and people. This industry demands a set of key skills and the right education to back them up. Let’s break it down:

Communication : Clear and effective communication is the cornerstone of hospitality and tourism. Whether you’re explaining the details of a local attraction or resolving a guest’s issue, how you communicate can make or break their experience.

Customer Service : This is all about making guests feel valued and taken care of. It’s not just about being friendly; it’s about going the extra mile to ensure their stay or experience is memorable for all the right reasons.

Flexibility : The only constant in hospitality and tourism is change. You might need to handle a last-minute booking, deal with unexpected travel disruptions, or adapt to new health and safety protocols. Being flexible and adaptable is key.

Cultural Awareness : With guests coming from all corners of the globe, understanding and respecting cultural differences is crucial. This awareness can enhance guest experiences and prevent misunderstandings.

Education and Training

Now, how do you develop these skills? Education and training play a crucial role.

Bachelor’s Degrees : A bachelor’s degree in hospitality management or tourism provides a solid foundation. These programs cover everything from the basics of customer service to the complexities of global tourism management.

Master’s Degrees : For those looking to take their career to the next level, a master’s degree offers specialized knowledge and leadership training. It’s perfect for roles in management and strategic planning within the industry.

Certifications : Short-term certifications can also boost your career. These might focus on specific areas like revenue management, event planning, or even sommelier courses for the food and beverage sector.

Institutions like Glion offer comprehensive programs that not only cover these essential skills but also provide practical experience through internships and industry projects. This hands-on experience is invaluable, allowing you to apply what you’ve learned in real-world settings.

The hospitality and tourism industry is about creating experiences. Whether you’re managing a hotel, planning events, or guiding tours, your success hinges on your ability to connect with and understand people from all walks of life. Education and training equip you with the tools to do just that, setting you up for a rewarding career in this vibrant industry.

As we look ahead, let’s explore the Growth and Future of the Hospitality and Tourism Industry and what it means for professionals in this field.

Growth and Future of the Hospitality and Tourism Industry

The hospitality and tourism industry is on a fast track, evolving with new trends, technology, and a strong focus on sustainability. Let’s dive into what’s shaping the future of this vibrant sector.

Industry Trends

Personalized Experiences : Travelers today seek unique and personalized experiences. They want to dive deep into local cultures, cuisines, and activities that are not part of the usual tourist trails. This demand is pushing businesses to customize their offerings.

Health and Wellness Tourism : A growing trend, especially post-pandemic, is the focus on health and wellness. Destinations offering wellness retreats, spa experiences, and outdoor activities are becoming increasingly popular.

Bleisure Travel : The blend of business and leisure travel is a trend that’s here to stay. Professionals often extend their business trips to enjoy the destination, leading to opportunities for hospitality and tourism sectors to cater to this niche.

Technological Advancements

AI and Machine Learning : From chatbots answering customer queries to AI-driven personalization of travel experiences, technology is at the forefront of transforming how services are delivered and experienced.

Virtual Reality (VR) and Augmented Reality (AR) : These technologies offer potential guests a sneak peek into what they can expect from their travel experience, enhancing their decision-making process.

Smart Rooms : The use of smart technology in hotel rooms for controlling temperature, lighting, and even ordering room service is enhancing guest experiences by offering convenience at their fingertips.

Sustainability

Eco-friendly Practices : There’s a significant shift towards sustainable tourism. Travelers are more conscious of their environmental impact, leading to a demand for eco-friendly accommodations and travel options.

Local Community Engagement : Supporting local communities by promoting local artisans, guides, and culinary experiences is becoming a priority for travelers, aligning with sustainable tourism goals.

Sustainable Transportation : The promotion of electric vehicles, bicycles, and walking tours is not only reducing the carbon footprint but also offering unique and immersive ways to explore destinations.

Looking Ahead

The future of hospitality and tourism is bright and brimming with opportunities. As the industry adapts to changing consumer preferences, embraces technology, and moves towards sustainability, it opens up new avenues for growth and innovation.

Professionals in this field must stay abreast of these trends, continuously update their skills, and remain flexible to navigate the evolving landscape of hospitality and tourism. With a forward-looking approach, the industry is set to offer unparalleled experiences to travelers, making it an exciting time to be part of this dynamic field.

As we continue to explore the vast opportunities within hospitality and tourism, it’s clear that the sector is not just about travel and accommodation anymore. It’s about creating memorable experiences, leveraging technology for convenience and personalization, and most importantly, doing so in a way that respects and preserves our planet for future generations .

In conclusion, the growth and future of the hospitality and tourism industry are shaped by the collective efforts of businesses, professionals, and travelers themselves, working towards a more sustainable, tech-savvy, and personalized travel experience.

Frequently Asked Questions about Hospitality and Tourism

In hospitality and tourism , there’s a lot to explore. Let’s dive into some common questions to help clear things up.

What is tourism and hospitality?

At its core, tourism is about traveling. Whether it’s for fun, to see family, or for work, it’s all about going to different places. Hospitality is how we make those travelers feel welcome. Think hotels, restaurants, and all the services that make a trip enjoyable.

These two go hand in hand. Without tourism, there’s less need for hospitality. And without good hospitality, tourism wouldn’t be as appealing.

Is hospitality and tourism a good degree?

Yes, it is. Here’s why:

• Job opportunities : This field is growing fast. From managing a hotel to planning events, there are many paths you can take.
• Diverse skills : You learn about business, customer service, and working with different cultures.
• Travel : For those who love to see new places, some jobs in this field might even require you to travel as part of your work.

What does hospitality and tourism fall under?

Hospitality and tourism is a part of the service industry. It includes a wide range of businesses, like hotels, restaurants, travel agencies, and theme parks. These businesses all share a common goal: to take care of people when they’re away from home, whether they’re on vacation or traveling for work .

In conclusion, the hospitality and tourism industry is vibrant and full of opportunities for those who are passionate about making people’s travel experiences memorable and enjoyable. Whether you’re interested in the operational side, like managing a hotel, or the creative aspect, like planning tours or events, there’s a place for you in this dynamic field.

Wrapping up our exploration of the hospitality and tourism sector, it’s clear that this industry is not just about providing services; it’s about creating experiences that last a lifetime. For those with a passion for making every guest’s stay memorable, the opportunities for career advancement are both vast and fulfilling.

Career Advancement in hospitality and tourism often means moving up the ranks from operational roles into management and beyond. It’s about honing your skills in communication, customer service, and flexibility, while also embracing the cultural awareness needed to cater to a global clientele. The path to advancement might start on the front lines but can lead to roles as a hotel manager, event coordinator, or even a travel consultant, each offering the chance to make a significant impact on the experiences of travelers and guests.

At Weekender Management , we understand the nuances and complexities of the hospitality and tourism industry. Our commitment is not just to our clients but to the broader community of professionals seeking to make their mark in this vibrant field. Through our comprehensive management services, we strive to maximize the potential of vacation rental properties, ensuring they not only meet but exceed the expectations of guests. Our focus on continuous improvement and long-term growth positions us as a strategic partner for those looking to advance their careers within this exciting industry.

Whether you’re a property owner looking to elevate your rental’s performance or a hospitality professional aiming for the next step in your career, Weekender Management is here to support your journey. With our deep industry knowledge and dedication to excellence, we help our clients navigate the complexities of the vacation rental market, ensuring their success now and in the future.

For those passionate about the hospitality and tourism industry, the possibilities are endless. With the right approach, dedication, and a partner like Weekender Management, achieving your career goals and contributing to the vibrant tapestry of this industry is well within reach.

Discover how we can help you maximize your potential in the hospitality and tourism industry by visiting Weekender Management . Together, let’s create unforgettable experiences for guests around the world and pave the way for your successful career in this dynamic field.

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Tourism vs. Hospitality - Decoding the Differences

Bryant & Stratton College Blog Staff

The hospitality and tourism industries are closely connected, but they are not the same thing. Though both connect to travel and leisure, these two industries have distinct differences that need to be understood if you are considering a degree or career in the field. By knowing how they are different, you can choose the right degree that will help you achieve your desired career path.

What is the Difference Between Tourism and Hospitality?

Hospitality is a field that focuses on providing accommodations to visitors at hospitality-related industries, such as hotels, motels, restaurants, cruise ships, country clubs, casinos, and convention centers, while tourism is focused on providing quality attractions and events in order to entice tourists to come.

For each of these fields to be successful, they focus on specific ways to keep people satisfied so they will return. Hospitality businesses must build strong relationships with their guests to not only prevent them from going to a competitor, but to keep them coming back. Many tourism businesses are classified as hospitality businesses as they must also have meaningful relationships, but they are more focused on traveling activities that may include heavy planning and marketing.

What are the Similarities Between Tourism and Hospitality?

Both the hospitality and tourism industries focus on serving people when they travel. These are highly competitive and always-changing fields that require people to be able to adapt to a changing market and work environment. Both tourism and hospitality professionals need to be good marketers to draw potential clients and customers to their industries.

What Jobs are there in the Travel and Tourism Industry?

The travel and tourism industry focuses on helping people plan and execute their travel arrangements. Some jobs in tourism management include:

Travel Agent

A travel agent is a great career path for people who majored in tourism. Travel agents work with their clients to plan their trips, so they must be highly organized and have a knowledge of the travel industry so they can book resorts, cruise ships, airline travel, and more for their clients.

Travel agents also assist clients with their travel budgets by calculating travel costs and helping clients choose trips and adventures that fit within their budget. They also can assist clients with getting their passports or other paperwork in order so they can legally travel.

The pay for a travel agent varies because they often earn commissions based on the trips and services they book, as well as the setting they work in. Travel agents can work independently or work with a travel agency, depending on the demand in their area.

Flight Attendant

A flight attendant works in an airline to help travelers get to their destination safely and comfortably. While travelers often see the simple work of the flight attendant, such as passing out snacks and collecting garbage, flight attendants are also trained on how to help protect passenger safety if something goes wrong.

Flight attendants need to be good at working with people, even those who are not in a good mood or who face frustration when they travel. One of the main benefits of this profession is getting to travel to and explore many destinations around the world.

The Bureau of Labor Statistics estimates that the demand for flight attendants will increase by 17% from 2019 to 2029, so it is a great time to pursue this career path.

What Jobs Are There in the Hospitality Industry?

Jobs within hotels, restaurants, and event centers tend to fall in the hospitality industry category. Hotel managers, event managers, hotel clerks, bar managers, and chefs are just a few examples in this industry, with details as follows:

Hotel Manager

A hotel manager makes sure that guests are comfortable during their stay in a hotel or resort. They may have to arrange for blankets or other amenities to be taken to hotel rooms, oversee the employees of the hotel, and ensure that supplies, like soap and shampoo, are ordered in a timely manner. On a resort property, the hotel manager may also be in charge of entertainment. The exact setting or location will dictate exact duties and responsibilities for this role. Overall, it is the manager's job to handle customer service needs that pop up during a guest's stay.

Event Manager

An event manager or event planner helps plan large events to ensure all attendees enjoy the experience. These individuals, like others in the hospitality industry, need to be highly organized. Event managers will plan all of the details, gather bids from venues and vendors, coordinate transportation for attendees, arrange for food, and even connect with local hotels to ensure people have a place to stay. They help their clients manage and maximize their budgets and ensure that everything is ready when the special event starts.

The BLS estimates that this career will grow 8% from 2019-2029, which is much faster than average. Approximately 10,800 new jobs will be created in this field, so it is a great time to consider pursuing a position in event management.

A concierge is employed by a resort or event center to help guests book entertainment and enjoy their stay more fully. These professionals need to know their local area well so they can connect guests to the entertainment options that best fit their tastes and desires for their trip.

Concierge professionals tend to be employed by high-end resorts and luxury hotels. Distinguished guests expect to have someone to help them book their services and are willing to tip well for this service.

Restaurant and Catering Professionals

The hospitality industry is also the industry that covers restaurants and catering services. While those interested in opening a restaurant or catering business will also need to explore foodservice training, training in hospitality will help them understand the customer service side of this industry. These professionals can work anywhere where food and beverage are prepared and served, including hotels, resorts, and restaurants.

Start Your Hospitality or Tourism Journey Today!

If the tourism and hospitality industries are appealing to you, then finding a career in these fields or industry may require further education. Bryant & Stratton College has a number of hospitality degree programs , including associate degrees and diplomas, that can help you get started in this field. Reach out to the admissions team at Bryant & Stratton College to learn more about these programs and to determine if they are the right fit for your career path.

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• Travel Tips

What Is The Hospitality And Tourism Industry

Published: December 12, 2023

Modified: December 28, 2023

by Ingunna Whipple

• Hotel Reviews
• Sustainability

Introduction

Welcome to the exciting world of the hospitality and tourism industry! This dynamic and ever-growing sector offers an array of opportunities for those with a passion for travel, leisure, and providing exceptional customer experiences. In this article, we will explore the ins and outs of the hospitality and tourism industry, its definition, scope, key players, employment opportunities, challenges, and trends.

The hospitality and tourism industry encompasses a wide range of businesses and services that cater to the needs of travelers, tourists, and individuals seeking leisure activities. It includes establishments such as hotels, resorts, restaurants, airlines, cruise lines, travel agencies, theme parks, and more. These diverse entities all work together to create memorable experiences for guests and visitors.

As global travel continues to increase year after year, the hospitality and tourism industry plays a crucial role in the global economy. Not only does it provide employment opportunities to millions of people worldwide, but it also contributes to the growth of local economies and promotes cultural exchanges between different regions and countries.

Nowadays, people’s expectations for travel and hospitality experiences have evolved. It’s no longer just about offering a comfortable stay or a delicious meal; guests seek unique and personalized experiences that resonate with them. This shift has led to the rise of experiential travel, where travelers immerse themselves in the local culture, try authentic cuisines, and engage in activities that give them a deeper understanding of a destination.

The hospitality and tourism industry is driven by the concept of hospitality, which entails providing an exceptional level of service and attention to guests. Whether it’s warmly welcoming guests at a hotel, anticipating their needs at a restaurant, or ensuring smooth travel arrangements, hospitality professionals strive to create a positive and memorable experience for every visitor.

Furthermore, the industry’s success relies heavily on effective customer service and customer relationship management. Building strong relationships with guests and fostering loyalty are essential for businesses to thrive in this competitive landscape. Word-of-mouth recommendations and positive online reviews have a significant impact on a company’s reputation and customer acquisition.

As we delve deeper into the hospitality and tourism industry, we will uncover the various sub-sectors, discuss the employment opportunities they offer, explore the challenges faced by professionals in the field, and highlight the latest trends shaping the industry’s future. So, let’s embark on this journey together and discover the countless possibilities that await in the vast world of hospitality and tourism.

Definition of Hospitality and Tourism Industry

The hospitality and tourism industry is a dynamic and ever-evolving sector that encompasses a wide range of businesses and services. It revolves around providing exceptional customer experiences to individuals who are seeking leisure activities, travel, and accommodation. This industry plays a crucial role in the global economy, offering employment opportunities to millions of people worldwide and contributing to the growth of local economies.

At its core, the hospitality and tourism industry is defined by its focus on hospitality, which involves delivering outstanding service and creating memorable experiences for guests. Whether it’s a luxury hotel, a quaint bed and breakfast, a fine dining restaurant, or an adventurous travel agency, the industry is united by its commitment to catering to the needs and desires of travelers and tourists.

Tourism, a significant component of the industry, refers to the activities individuals engage in when visiting different destinations. These activities can include sightseeing, exploring cultural landmarks, participating in outdoor adventures, and immersing oneself in the local culture. The tourism sector relies on various services within the hospitality industry to provide comfortable accommodation, dining options, transportation, and entertainment.

The hospitality and tourism industry includes a wide array of businesses and services:

• Hotels and resorts: These establishments provide accommodation for travelers, ranging from budget-friendly options to luxury experiences.
• Restaurants and food services: From casual dining to Michelin-starred restaurants, these establishments offer a variety of culinary experiences.
• Travel agencies and tour operators: These organizations assist individuals in planning and booking their travel arrangements, including flights, accommodations, and itinerary.
• Airlines, cruise lines, and transportation services: These companies facilitate the movement of travelers, providing air, sea, and land transportation options.
• Entertainment and attractions: Theme parks, museums, historical sites, and other attractions offer leisure activities and entertainment for tourists.
• Event planning and management: This sector handles the organization and execution of various events, such as conferences, weddings, and corporate functions.

The hospitality and tourism industry is highly customer-oriented and focuses on creating positive experiences that meet and exceed the expectations of guests. It requires individuals with excellent communication skills, attentiveness, problem-solving abilities, and a genuine passion for providing top-notch service.

As the industry continues to evolve, the definition of hospitality and tourism has expanded beyond traditional boundaries. It now encompasses new trends such as eco-tourism, wellness tourism, experiential travel, and the integration of technology in enhancing guest experiences. This adaptability ensures that the industry remains relevant and responsive to the changing preferences and demands of travelers worldwide.

Scope and Importance of the Hospitality and Tourism Industry

The scope of the hospitality and tourism industry is vast and encompasses a wide range of activities, businesses, and services. From providing accommodation and dining options to organizing travel arrangements and offering entertainment, this industry plays a crucial role in shaping the experiences of travelers and tourists worldwide.

One of the primary purposes of the hospitality and tourism industry is to cater to the needs and desires of individuals seeking leisure activities and travel experiences. It offers a diverse range of services that provide comfort, convenience, and entertainment to guests, ensuring their satisfaction and enjoyment.

One of the key aspects of the industry’s scope is the provision of accommodation options. Hotels, resorts, bed and breakfasts, and other lodging establishments offer visitors a place to stay while exploring a destination. These accommodations can range from budget-friendly options to luxury suites, catering to the preferences and budgets of various travelers.

In addition to accommodation, the industry also encompasses an array of dining options. Restaurants, cafes, food trucks, and other establishments provide visitors with the opportunity to sample local cuisine, indulge in gourmet experiences, or simply grab a quick bite to eat. These dining experiences often add a cultural element to travelers’ journeys, allowing them to savor the flavors of a particular region or country.

The transportation sector is another critical component of the industry’s scope. Airlines, cruise lines, car rental services, and other transportation providers ensure that individuals can reach their desired destinations conveniently and safely. This seamless connectivity helps facilitate travel and allows visitors to explore multiple locations during their trips.

Entertainment and attractions are also significant contributors to the industry’s scope. Theme parks, museums, historical sites, natural landmarks, and other attractions offer leisure activities and unique experiences for tourists. These destinations play a vital role in attracting visitors, increasing local tourism, and promoting cultural exchanges.

The importance of the hospitality and tourism industry cannot be overstated. Economically, it generates substantial revenue for destinations, stimulates local businesses, and creates employment opportunities for millions of people worldwide. It supports a wide range of industries, including hospitality, transportation, food and beverage, and retail.

Socially, the industry encourages cultural exchange, promoting understanding and appreciation of different cultures and traditions. It fosters connections between people from diverse backgrounds, enabling the exchange of ideas, customs, and perspectives.

Furthermore, the hospitality and tourism industry contributes to the preservation and promotion of natural and cultural heritage. By highlighting and showcasing these assets, it raises awareness about the importance of conservation and sustains the value of unique landmarks and ecosystems.

Key Players in the Hospitality and Tourism Industry

The hospitality and tourism industry consists of numerous key players, each playing a crucial role in delivering exceptional experiences to travelers and tourists. These players include a diverse range of businesses and organizations that contribute to the overall success and growth of the industry.

Hotels and resorts are major players in the industry, offering accommodation options to guests. This includes luxury chains, boutique hotels, budget-friendly establishments, and everything in between. These properties provide a variety of amenities and services to ensure a comfortable and enjoyable stay for visitors.

Restaurants and food services are also significant players in the hospitality and tourism industry. From high-end fine dining establishments to casual cafes and street food vendors, these businesses cater to the culinary needs of travelers and locals alike. They offer a wide range of cuisines, flavors, and dining experiences to satisfy diverse palates.

Travel agencies and tour operators play a vital role in planning and organizing travel arrangements. These players assist individuals and groups in booking flights, accommodations, transportation, and activities. They curate itineraries, provide expert guidance, and offer personalized recommendations to create unforgettable travel experiences.

Airlines and cruise lines are essential players in the transportation sector of the industry. They facilitate travel by air and sea, connecting travelers to various destinations around the world. These players focus on providing safe, efficient, and comfortable travel options for guests, ensuring a seamless journey from start to finish.

Attractions and entertainment providers contribute to the industry’s vibrancy and appeal. Theme parks, museums, zoos, national parks, and cultural heritage sites offer unique and engaging experiences for visitors. They showcase local history, art, nature, and provide opportunities for entertainment and adventure.

Event planning and management companies are important players in the industry, organizing conferences, conventions, weddings, and other events. They ensure that every aspect of an event, from venue selection to logistics and execution, meets the highest standards and exceeds the expectations of attendees.

Tourist boards and destination marketing organizations (DMOs) play a critical role in promoting tourism and attracting visitors to specific destinations. They collaborate with businesses, governments, and local communities to develop marketing campaigns, initiatives, and strategies aimed at showcasing the unique offerings and attractions of a place.

In addition to these key players, technology companies have also become increasingly important in the hospitality and tourism industry. Online travel agencies (OTAs), hotel booking platforms, and travel review websites have transformed the way travelers search, book, and review accommodations and experiences. The integration of technology has revolutionized the industry, providing greater convenience and options for travelers.

Collaboration and synergy between these key players are essential for the industry’s success. By working together, they can create seamless, memorable experiences for travelers, enhance destination offerings, and drive the growth and sustainability of the hospitality and tourism industry as a whole.

Sub-Sectors of the Hospitality and Tourism Industry

The hospitality and tourism industry is vast and comprises several sub-sectors that cater to the diverse needs and preferences of travelers and tourists. These sub-sectors offer specialized services and experiences, contributing to the overall richness and appeal of the industry. Let’s explore some of the key sub-sectors:

Hotels and Accommodation: This sub-sector includes various types of lodging options, ranging from luxury hotels and resorts to budget-friendly motels and hostels. It encompasses full-service hotels, boutique properties, bed and breakfasts, serviced apartments, and vacation rentals. Each lodging category provides different amenities, styles, and experiences to cater to the needs of travelers.

Food and Beverage: Restaurants, cafes, bars, and food services form an integral part of the hospitality industry. This sub-sector caters to both locals and tourists, offering a wide array of culinary delights that showcase local and international cuisines. From fine dining establishments to street food vendors, the food and beverage sub-sector delivers diverse and memorable dining experiences.

Travel and Tourism Agencies: This sub-sector encompasses travel agencies, tour operators, and online travel agencies (OTAs). These entities specialize in organizing and facilitating travel arrangements for individuals and groups. Whether it’s booking flights, accommodations, transportation, or activities, travel agencies play a pivotal role in creating seamless and hassle-free travel experiences for customers.

Transportation: Airlines, cruise lines, car rental services, and transportation companies fall under this sub-sector. They ensure the smooth movement of travelers from one destination to another. Airlines connect cities and countries through air travel, while cruise lines offer leisurely journeys by sea. Car rental services and transportation companies provide options for convenient and efficient travel within destinations.

Entertainment and Attractions: This sub-sector comprises a variety of attractions and entertainment venues that enhance the overall travel experience. Theme parks, museums, art galleries, amusement parks, zoos, botanical gardens, and cultural heritage sites all fall under this category. These attractions offer visitors the opportunity to explore local history, culture, and natural beauty, providing unique and engaging experiences.

Event Planning and Management: This sub-sector specializes in organizing and managing various events, such as conferences, conventions, weddings, and exhibitions. Event planning companies coordinate every aspect of an event, including venue selection, logistics, catering, and audiovisual arrangements. They ensure that events run smoothly and leave a lasting impression on attendees.

Destination Marketing: Tourist boards and destination marketing organizations (DMOs) play a crucial role in this sub-sector. They promote specific destinations, highlighting their unique attractions, cultural heritage, and activities to attract visitors. DMOs collaborate with local businesses, governments, and communities to develop marketing campaigns and initiatives that boost tourism and drive economic growth.

Technology and Online Platforms: This emerging sub-sector encompasses technology companies that provide online booking platforms, travel review websites, and other travel-related services. These platforms have revolutionized the way travelers plan, book, and review accommodations and experiences. Through the integration of technology, travelers have access to a vast array of choices and can personalize their travel experiences.

Each sub-sector of the hospitality and tourism industry plays a vital role in creating a comprehensive and enjoyable travel experience. By working together, these sub-sectors contribute to the overall success and growth of the industry, ensuring that travelers have a plethora of options and experiences to choose from.

Employment Opportunities in the Hospitality and Tourism Industry

The hospitality and tourism industry offers a vast array of employment opportunities for individuals with a passion for customer service, travel, and creating memorable experiences. From entry-level positions to managerial roles, this diverse industry provides a wide range of careers that cater to different skills, interests, and qualifications.

Overall, the hospitality and tourism industry is a dynamic and promising field for employment. It offers a wide range of opportunities for individuals seeking a career that combines their passion for travel, customer service, and creating unforgettable experiences. Whether it’s in hotels, restaurants, travel agencies, attractions, or event planning, there is a career path for individuals with diverse backgrounds and interests in this ever-evolving industry.

Challenges and Trends in the Hospitality and Tourism Industry

The hospitality and tourism industry operates in a dynamic and highly competitive environment, continuously evolving to meet the changing needs and expectations of travelers. While the industry offers numerous opportunities, it also faces various challenges. Let’s explore some of the key challenges and trends shaping the industry today.

Challenges:

1. Economic Factors: Economic instability, fluctuating currency rates, and geopolitical issues can significantly impact the industry. Economic downturns can lead to reduced travel budgets and lower consumer spending, affecting businesses’ profitability and sustainability.

2. Seasonality and Demand Variability: Many tourist destinations experience peaks and troughs in visitor numbers due to seasonality. Managing staffing levels, inventory, and operations to meet fluctuating demand can be a complex challenge for businesses.

3. Competition: The industry is highly competitive, with businesses constantly vying for customers. From large hotel chains to online travel agencies and local establishments, businesses must differentiate themselves and offer unique experiences to attract and retain guests.

4. Changing Consumer Behavior: Consumers’ preferences and expectations are continually evolving. Travelers now seek experiential travel, personalized recommendations, sustainable practices, and seamless digital experiences. Adapting to these changing demands requires continual innovation and investment in technology.

5. Technological Advancements: While technology presents opportunities for growth, it also poses challenges. Online booking platforms, review websites, and social media influence consumer decisions and can impact a business’s reputation. Staying up-to-date with technological advancements and leveraging them strategically is key to staying competitive.

1. Sustainable and Responsible Tourism: In response to growing environmental concerns, travelers are embracing sustainable and responsible tourism practices. Businesses are implementing eco-friendly policies, reducing waste, and supporting local communities to meet the rising demand for environmentally conscious travel experiences.

2. Experiential Travel: Travelers are seeking immersive and authentic experiences. They want to connect with local cultures, participate in unique activities, and explore off-the-beaten-path destinations. Businesses are catering to these desires by offering curated experiences, cultural immersion programs, and adventure tourism options.

3. Personalization and Customization: Personalization is a key trend in the industry. Travelers appreciate tailored recommendations and experiences that cater to their specific preferences and interests. Businesses are utilizing technology and data analytics to understand customer preferences and provide personalized offers and services.

4. Technology Integration: Technology continues to transform the industry, with advancements such as artificial intelligence, virtual reality, and mobile apps enhancing customer experiences. Key trends include mobile check-ins, contactless payments, chatbots for customer service, and personalized digital concierge services.

5. Rise of Sharing Economy: The sharing economy, represented by platforms such as Airbnb and Uber, has disrupted traditional hospitality and transportation sectors. It has provided travelers with alternative accommodation options and transportation choices, forcing businesses to adapt and find innovative ways to compete.

By staying informed about these challenges and trends, businesses in the hospitality and tourism industry can adapt their strategies, invest in technology, and provide exceptional experiences that meet the evolving needs and expectations of travelers. The industry’s ability to navigate these challenges and embrace trends will determine its success and resilience in the ever-evolving global marketplace.

The hospitality and tourism industry holds immense potential as a thriving and vibrant sector that caters to the needs of travelers and tourists worldwide. Throughout this article, we have explored the definition, scope, key players, employment opportunities, challenges, and trends of this dynamic industry.

The industry’s definition is centered around providing exceptional service and creating memorable experiences for guests. It encompasses a wide range of businesses and services, including hotels, restaurants, travel agencies, airlines, attractions, and event planning organizations.

The scope and importance of the hospitality and tourism industry cannot be understated. It drives economic growth, generates employment opportunities, fosters cultural exchange, and promotes the preservation of natural and cultural heritage.

The key players in the industry each play a significant role in delivering outstanding experiences to travelers, ensuring their comfort, satisfaction, and enjoyment during their journeys.

The numerous sub-sectors within the industry, such as hotels, food and beverage, travel agencies, attractions, event planning, and technology, offer diverse employment opportunities for individuals with a range of skills and interests.

While the industry presents exciting opportunities, it also faces challenges, including economic factors, competition, changing consumer behavior, and technological advancements. Businesses must embrace these challenges and stay attuned to the latest trends in order to provide exceptional experiences and stay competitive.

The trends shaping the industry, including sustainable and responsible tourism, experiential travel, personalization, technology integration, and the rise of the sharing economy, offer new avenues for growth and innovation for businesses in the industry.

In conclusion, the hospitality and tourism industry is a dynamic and ever-evolving sector that offers a wide range of opportunities for individuals seeking a career that combines their passion for travel, customer service, and creating unforgettable experiences. By adapting to changing consumer preferences, embracing technology, and providing exceptional service, businesses in the industry can continue to thrive and contribute to the growth and success of this exciting and vital industry.

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• Hospitality Industry

Top 10 Trends in the Hospitality Industry in 2024

January 10, 2024 •

15 min reading

What are the latest trends in the hospitality industry? As a testament to its resilience, agility and innovative spirit, this article reflects today’s increasingly dynamic hospitality industry in terms of its long, medium and short-term evolution. Discover the industry's adaptability and forward-thinking approach, shaping its trajectory in the face of challenges and opportunities, while staying attuned to the latest hospitality trends. 

Best-selling author, Will Guidara, claims “We are entering into a hospitality economy” – suggesting that what underpins the essence of hospitality, (service excellence, human interaction, personalization and the co-creation of memorable experiences), is actually what many sectors of industry are desperately in need of today.

As we charge at break neck speed towards an ever-more digitalized society , the hospitality industry stands out as the successful hybrid that balances the implementation of tech innovation for improved operations whilst preserving the human need for connection, authenticity and real-life discovery.

With statistics predicting a healthy expansion of the sector (e.g., the bleisure and wellness markets on the up, room demand set to reach an all-time high, booking.com as the most valuable tourism brand in the world, and new positions opening up in the sector), we can confirm that the hospitality industry is poised for a significant transformation in 2024.

So what new trends are emerging?  Driven by interlinked factors, including technological progress, evolving consumer preferences and a deeper focus on sustainability, hospitality businesses can capitalise on emerging opportunities to enhance guest experiences and position themselves for long-term success.

10 hospitality trends 2024 - Elevate experiences, embrace evolution

• Workforce empowerment: Transforming challenges into opportunities
• Artificial intelligence and technology: Choosing the best tech to revolutionize hospitality
• Culinary experiences: Putting experiences, authenticity and the senses first
• Bars and drinks redefined: Adding creativity and design to the drinks' menu
• Fine dining: In need of reinvention but full of potential
• Fine wine prices: Navigating the fluctuating vineyard market
• Rising interest rates: The impact on hotel property values and transactions
• Green hospitality: Beyond sustainability to net positivity
• Data-driven decision-making: Data-analytics for optimum personalization
• The power of social media: Crafting authentic narratives

1. Workforce empowerment: Transforming challenges into opportunities

Over the past two years, the industry's biggest challenge has not been attracting customers but rather finding and retaining staff. To address this issue, many hotel groups have begun to make improvements, and there has never been a better time for newcomers to the industry to negotiate better working conditions and salaries.

Today, many hotels offer their staff free or low-cost accommodation , increased wages and reduced peak-time working hours. They also invest in training programs to motivate staff and allow mobility up the corporate ladder. Empowered employees not only have a positive impact on how guests feel and their decision to become repeat guests, but also help attract other employees to build a cohesive, high-quality workforce.

2. Artificial intelligence and technology: Choosing the best tech to revolutionize hospitality

As Chat GPT celebrates its first birthday, we can only surrender to the fact that, like it or not, we have entered into an AI-accelerated world, and consequently, the pace at which the industry adapts has become a pressing issue. But which forms of AI best harness hospitality stakeholder outcomes?

Contactless services: Effortless technology, impeccable stay

Embracing contactless technologies is about redefining the hospitality experience to cater to modern travelers, not just adapting to the pandemic-driven shift toward touchless interactions. Contactless services simplify the guest journey by reducing wait times and physical contact points. Mobile check-in, digital keys and voice or tablet-controlled room automation allow guests to move seamlessly through the hospitality experience. The citizenM hotel brand has pioneered this minimum-fuss check-in and room experience with a hugely successful UX-friendly app.

Other popular tools such as WhatsApp allow hotel staff to remain in constant contact with customers during their stay, respond immediately to requests and thus provide bespoke services. It also streamlines operations by reducing the need for face-to-face interactions and human error, improving service delivery and lowering the burden on a scarce workforce. In line with contactless services , hospitality companies need to prioritise data privacy and security, putting solid safeguards in place to protect guest information against cyber threats.

Technology-driven innovation: Beyond boundaries

At the heart of technology innovation is the ability for managers and employees to centralize information at all times. Migrating to a fully cloud-based solution is a first but essential step . This enables real-time sharing, better service orientation and personalisation of the guest experience, improving all hotel departments.

Robotic systems (as used in the Henn-na Hotels in Japan) optimise processes and increase efficiency in back-of-house operations such as housekeeping or F&B outlets, reducing staffing requirements and allowing managers to respond to problems in real-time and with accountability.

The use of augmented reality helps with staff onboarding, allowing new employees to be put in real-life situations and trained before even entering a room. Pedagogically speaking, as practiced at EHL in the Virtual Housekeeping class, AR provides a more interactive and complete learning environment. Augmented reality also allows hotels and airlines to market themselves in an ad hoc style - an innovative and sustainable approach. Potential customers can better immerse themselves in the facilities and make more informed decisions.

Hyper-personalization: Tailored moments, lasting loyalty

In a world of commoditised practices, guests are increasingly looking for personalized experiences that cater to individual preferences and aspirations . In the hospitality industry, hyper-personalisation means relying on technology-based micro-segmentation to tailor each guest interaction to real-time needs and behaviours. For example, eliminating 'deadlines' such as check-in/check-out/F&B closing times, knowing whether a customer wants to be accompanied through check-in or do it contactless, personalizing room temperature, lighting and amenities or tailoring F&B options promptly and accurately. At Fauchon l'Hotel in Paris clients suggest the menu and define their portion sizes. From a hotel perspective, this enables better dynamic pricing strategies, higher guest-spent for experiences, or tailored loyalty programmes with commercial partners.

3. Culinary experiences: Putting experiences, authenticity and the senses first

The desire to experience rather than simply consume means that experiential dining has today evolved in new ways. Hotels are now required to offer a range of dining options to cater to different customer tastes and, when correctly done, can become a culinary destination where the restaurant is at the heart of the experience and not just an extension of the hotel. A good example is the Grand Resort Bad Ragaz in Switzerland which boasts seven restaurants, three bars, a bistro, a café and a sushi takeaway, (plus an array of Michelin stars and GaultMillau points), unsurprisingly making it a mecca for traveling gourmets.

Experiential design can also allow customers to taste food in a multi-sensory environment that stimulates all the senses, not just the taste buds (e.g., Ultraviolet by Paul Pairet in Shanghai ). Some hotels have started to provide experiences even on a smaller and more dynamic scale. E.g., They offer four-hand dinners (an invited chef cooks with the in-house chef), organise kitchen parties (clients eat in the kitchen), or have a front-cooking area. Specialist cooking classes can complement this. The key here is to offer a unique experience like how to make your own gin, cook local food , or bake bread with the experts.

Another trend relates to children . A menu of unimaginative, standard food à la burger and chips is no longer enough; parents want their children to eat healthier, globally-inspired food with high-quality ingredients. Adding world food or plant-based products and packaging them in innovative ways will make for happy families likely to return.

A final significant trend in the food sector is off-premise dining and digitalisation. Although customers have returned to eating in restaurants since the pandemic, a large proportion mix on- and off-premise dining. Restaurants need to cater to this clientele to increase revenues, as takeaways are no longer limited to fast food but also exist for traditional and even fine dining. This means that restaurants need to reorganise their workflows and operations to cater to in-house diners and delivery, alongside designing appropriate, creative, high-quality packaging and optimising delivery or collection methods to be easy and inexpensive without competing with traditional delivery platforms.

This can also include ghost kitchens focusing only on food production for delivery and takeaway. Post-Covid, ghost kitchens have become an increasingly popular trend in the restaurant industry with statistics showing that they are projected to be a $157 billion market by 2030. As of 2021, there are over 100,000 ghost kitchens operating worldwide .

4. Bars and drinks redefined: Adding creativity and design to the drinks' menu

Today's bars need to stand out by offering unique drinks paired with a special, Instagrammable atmosphere to create an immersive experience for their customers. E.g., Ashley Sutton Design Bars are known across Asia for their ability to transport guests to enchanting, immersive worlds, offering not just a place to drink but an entire experience that stimulates the senses and sparks curiosity.

Gone are the days of a simple wine list and international beer and spirit brands. Bars and restaurants need to specialise and cater to an international clientele with evolving tastes. A dedicated beer menu with local craft beers, wines from specific vintages and terroirs with a narrative, eclectic spirits collections (after whisky and gin, look out for rum in the coming years), and fresh hyper-locally sourced juices are what customers want.

Mixology has been around for some time, but offering mocktails and non-alcoholic food pairings is also becoming essential due to stricter alcohol laws and healthier lifestyles driven by Gen Z and millennials. Faux booze has gone mainstream and now it’s not just a case of ‘dry January’, but mocktails all year long! Cocktail and mocktail innovations should go beyond traditional recipes to include unique ingredients, techniques and presentation styles (e.g., Bar Benfiddich in Tokyo ) and be taught to customers in mixology classes.

The effect of economic uncertainty on hotels, restaurants and fine wines

5. fine dining: in need of reinvention but full of potential.

The pandemic has unexpectedly affected consumer behaviors: they now organize themselves on short notice, have become increasingly spoilt for choice and no-shows are today the norm . More and more restaurants are responding by asking for a credit card at the time of reservation. But this only treats one of the symptoms without solving the problem. "A full house one day, but only four tables occupied the next" , is an observation that led Antoine Lecefel to shut his restaurant – sadly one of many fine dining establishments to do so.

Inflation and declining purchasing power play a part, but more generally, the fundamental problem lies in the inability of fine-dining restaurants to reinvent themselves. Unlike hotels and other players in the hospitality industry that increasingly compete with them through ambitious and innovative culinary projects, they have to contend with limited financial and human resources. They have neither the capacity to implement and manage a proactive strategy nor the means to invest in cutting-edge, highly experiential concepts. Initiatives such as Eatrenalin , which create a unique experience by combining gastronomy, décor and entertainment, offer a glimpse of this changing industry and the new competition facing traditional players.

Solutions? A strong, contemporary concept plus a business-oriented management that understands consumers, connects with them and is thought through from the outset to generate margins and create synergies and/or economies of scale. The Igniv chain is a shining example of this, driven by an extraordinary chef and based on the principle of “we love to share”, Andreas Caminada has created a unique and fully coherent concept, the success of which is now being rolled out in various locations, all of which have been rewarded with rave reviews from customers and expert guides.

6. Fine wine prices: Navigating the fluctuating vineyard market

Another challenge facing restaurants is cellar and wine list management. Restaurants with limited financial resources may even wonder whether fine wines still have their place on their menu . Indeed, fine wine prices have risen almost exponentially since the Global Financial Crisis of 2008. But here, too, the situation appears to have changed.

A year ago, fine wine prices were at record highs. Demand for rare, artisanal wines from regions with long-standing terroir reputations was at its peak. One could go on about Burgundy, but many other examples are as revealing. For example, the Châteauneuf-du-Pape Réserve cuvée from Rayas, worth between 150 and 200 euros (for young vintages) less than a decade ago, has soared to reach and exceed the 2’000 euro mark. At this point, voices suggested that this was normal; inflation should also positively impact the prices of fine wines. But there is no reason this should be the case: demand drives prices, not production costs. Fine wines attract wealthy people, collectors and investors. For them, the resources that can be invested in wine depend on economic conditions and financial markets. The latter have fallen sharply since the beginning of 2022. Not surprisingly, wine prices have followed the same trend.

The most spectacular move was in Burgundy wines. Prices had become so high that these wines had detached from the rest of the market. Just a year ago, many wines from the 2019 vintage were selling for several thousand euros a bottle. One wondered whether these wines had permanently changed their status and would never be traded at lower prices again. Today, the trend has abruptly reversed, and it appears more like a speculative bubble that has begun to implode. Time will tell. The fine wine market offers an almost perfect setting for this kind of phenomenon: herding behaviour is common, and, in the end, price levels depend not on financial arguments but simply on what people are willing to pay for a bottle.

7. Rising interest rates: The impact on hotel property values and transactions

As we have seen with wine, economic conditions considerably impact on the value of tangible assets. The same applies to real estate . The market proved relatively resilient last year, thanks to the ability of hotels to pass on (sometimes more than proportionally) higher costs to their customers, while maintaining high occupancy rates. The increase in RevPar thus more than offsets the rise in discount rates.

Today, consumers having finished dipping into their COVID-19 savings and interest rates remaining high, the very long upward cycle in hotel property values has ended. What remains as a stabilising factor is the fact that the pipeline of hotel projects is thin. In other words, supply is likely to stagnate over the coming years and should thus not contribute to aggravating the supply-demand imbalance. Nonetheless, we can expect pressure on prices. Refinancing transactions will further exacerbate this, which will take place on far less favourable terms over the next 12-24 months. As is always the case in this type of environment, we can expect forced sales, sometimes at substantial discounts to current valuations.

Another consideration is sustainability . The residential real estate market is becoming highly selective, making it hard to rent and make profitable properties with an unfavourable environmental record. This trend has already begun and will likely intensify, affecting commercial real estate in a major way. In other words, hotels that have not been renovated and adapted to today's standards and expectations will likely suffer more than proportionately.

Other trends that have been, still are, and will continue to shape hospitality

8. green hospitality: beyond sustainability to net positivity.

After a period of harvesting low-hanging fruit, hospitality groups are increasingly looking for more innovative and meaningful ways to implement, measure and communicate their sustainability practices . In the F&B industry, local sourcing has become standard in many outlets. However, it has now started to scale up more by offering better traceability of products (e.g., The Europe Hotel in Ireland has its own farm with livestock, fish, and produce ). In addition, guests are increasingly being educated on sustainable practices, e.g., cooking classes on how to use the entire ingredients and avoid food waste. It is no longer about doing good but rather showing customers how to do good.

Hospitality groups are also increasingly adopting sustainable building techniques and are generally trying to adopt a 360-degree strategy that allows them to be sustainable from the first brick up to the operation (e.g., the Beyond Now Network where industry experts have joined forces to transform hospitality businesses into environmentally friendly, efficient and profitable enterprises). Some are going even further, not content with being net zero but aiming to become net positive, exemplified by ‘regenerative tourism’ practices .

9. Data-driven decision-making: Data-analytics for optimum personalization

"Information is the oil of the 21st century, and analytics is the combustion engine" (Peter Sondergaard, senior vice president and global head of Research at Gartner, Inc.). The current trend is moving away from simply collecting data to engineering and analysing the vast amount of data efficiently into actionable decisions and gaining an edge over competitors.

Today's successful early-adopter hospitality companies have a data-driven business model . For example, through its platform, Booking.com has extensive knowledge of guest and hotel behaviour, which it can use in real-time to adapt its offers and displays and negotiate better deals with hoteliers. The Marriott International hotel chain uses data analytics to personalize guest experiences, with their loyalty program as a major source of data collection.

Data is reshaping hotel marketing, allowing hotels to better monitor guest satisfaction and desires to personalise experiences and better target the customer base . Finally, it enables hotels to increase revenue through more accurate yield and revenue practices by better forecasting demand and thus offering more dynamic pricing strategies.

10. The power of social media: Crafting authentic narratives

This consistent trend is entering a new phase of maturity. First, marketers need to find more innovative ways to capture the attention of customers who are constantly bombarded with messages. With their short video content, the rise of TikTok and Instagram seems promising. It allows the sharing of stories to enhance the storytelling of hospitality outlets (e.g., the customer becomes part of the act through employee or behind-the-scenes videos).

Second, the use of influencers has gained traction in the industry. On average, businesses generate $6.50 in revenue for each $1 invested in influencer marketing . Here, marketers need to find the needle in the haystack with influencers who have enough reach and best fit the hotel's values and story.

Third, with advances in technology and the many options available, marketers need to accurately measure the impact of their social media efforts and finetune the message accordingly. They also need to balance customer and organic content creation and paid or free content. Overall, the cost of social media must be commensurate with the benefits, be professional, authentic and follow a clear strategy in line with traditional marketing efforts.

Master in Hospitality Management

Key takeaway from ehl's hospitality industry trends 2024 - crafting experiences, influencing lives, and paving the way to tomorrow.

In today’s hospitality landscape, it is difficult to confine ourselves to an annual update. Certainly, several general trends have been in place for years and continue to evolve, but by and large, this once cozy industry is constantly innovating and reinventing itself. It is not just adapting to customers. It is creating its own momentum, helping to shape the society and economy of 2024 and beyond.

From computer games to popular films and TV shows, the hospitality industry impacts our daily lives more than we realize. As a sector that thrives on personalized, immersive encounters, it caters not just to our desires for leisure, travel and memorable life experiences but also influences the way we interact, socialize and dream.

Associate Professor of Finance at EHL Lausanne

Associate Professor at EHL

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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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Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2033

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

Editor’s Picks Current statistics on this topic

Current statistics on this topic.

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Travel and tourism employment worldwide 2019-2033

Related topics

Recommended.

• Hotel industry worldwide
• Travel agency industry
• Sustainable tourism worldwide
• Travel and tourism in the U.S.
• Travel and tourism in Europe

Recommended statistics

• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2033
• Basic Statistic Travel and tourism: share of global GDP 2019-2033
• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
• Basic Statistic Global leisure travel spend 2019-2022
• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Basic Statistic Travel and tourism employment worldwide 2019-2033

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2022, with a forecast for 2023 and 2033 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2033

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2022, with a forecast for 2023 and 2033

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2022, with a forecast for 2023 and 2033 (in millions)

• Premium Statistic Global hotel and resort industry market size worldwide 2013-2023
• Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
• Basic Statistic Leading hotel companies worldwide 2023, by number of properties
• Premium Statistic Hotel openings worldwide 2021-2024
• Premium Statistic Hotel room openings worldwide 2021-2024
• Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2022

Global hotel and resort industry market size worldwide 2013-2023

Market size of the hotel and resort industry worldwide from 2013 to 2022, with a forecast for 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

Hotel openings worldwide 2021-2024

Number of hotels opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Hotel room openings worldwide 2021-2024

Number of hotel rooms opened worldwide from 2021 to 2022, with a forecast for 2023 and 2024

Countries with the most hotel construction projects in the pipeline worldwide 2022

Countries with the highest number of hotel construction projects in the pipeline worldwide as of Q4 2022

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
• Premium Statistic Market value of selected airlines worldwide 2023
• Premium Statistic Global passenger rail users forecast 2017-2027
• Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
• Premium Statistic Number of users of car rentals worldwide 2019-2028
• Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2027

Worldwide number of passenger rail users from 2017 to 2022, with a forecast through 2027 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2019-2028

Number of users of car rentals worldwide from 2019 to 2028 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Leading museums by highest attendance worldwide 2019-2022
• Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
• Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Leading museums by highest attendance worldwide 2019-2022

Most visited museums worldwide from 2019 to 2022 (in millions)

Most visited amusement and theme parks worldwide 2019-2022

Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
• Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
• Premium Statistic Technologies global hotels plan to implement in the next three years 2022
• Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2023

Share of travelers that believe sustainable travel is important worldwide in 2023

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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25 Hotel Industry Statistics [2023]: Hotel Rate Trends And Market Data

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Research Summary. The hotel industry not only reaches across the globe but also spans a wide cross-section of options ranging from budget motels to luxury resorts, making it an interesting field to study. Here are the key statistics on the hotel industry:

There are at least 187,000 hotels in the world as of 2023.

There are an estimated 17.5 million guestrooms in the world.

The global hospitality industry is worth over $4.548 trillion as of 2022.

There are about 1.6 million people employed by the U.S.’s accommodation industry.

The global travel and tourism industry was worth $4.671 trillion in 2020 , down from its $9.17 trillion value in 2019.

The average U.S. hotel occupancy rate is 64.2% as of February 2023.

Hotel Industry Statistics by Consumer Preferences

78% of millennials would rather spend their money on experiences than on things.

Hotels with a significant number of high-quality photos on their websites see a 15% increase in conversion rates.

This is compared to hotels that use few and/or low-quality photos. Including good photos of hotel rooms and amenities helps travelers know what they’re getting into and better imagine themselves there.

TripAdvisor shared that the number of photos a hotel has on its TripAdvisor profile has the most impact on traveler engagement with the listing.

More specifically, properties with at least one photo see a 138% increase in engagement and are 225% more likely to receive a booking inquiry, and those with over 100 photos see a 151% increase in engagement and are 283% more likely to receive a booking inquiry.

Europe has the highest hotel occupancy rate of any region in the world.

As of 2019, European hotels have an occupancy rate of 72.2%, meaning an average of 72.2% of all hotel rooms are occupied.

US Hotel Industry Statistics

There are 90,562 hotel and motel businesses in the U.S.

This number is a 0.4% increase from 2021, which is on trend with the average annual growth rate of 0.4% that this industry has seen from 2017 to 2022.

There are approximately 5.29 million hotel rooms in the U.S.

The U.S. hotel and motel industry is worth $177.6 billion.

This industry is predicted to grow by 33.6% throughout 2022 as it continues to recover from the COVID-19 pandemic, although it’s seen an average annual decline of 2.4% from 2017 to 2022.

The U.S. tourism industry was valued at $545.11 billion in 2020.

In 2020, U.S. hotels had an average occupancy rate of 44%.

Hotel Industry Statistics by Employment

The U.S.’s accommodation industry employs about 1.6 million people.

In Q1 2019, there were 1.352 million gross job gains in the U.S. leisure and hospitality sector.

Here are data points for each quarter from Q1 2019 through Q2 2021.

In Q1 of 2019, there were 1.22 million gross job losses in the U.S. leisure and hospitality industry.

Here are the numbers for each quarter following that through Q2 2021:

The average employee of the U.S. leisure and hospitality industry makes $19.44 an hour.

32% of U.S. leisure and hospitality industry employees have access to employer-sponsored health care.

43% get paid vacation from their employers, and 50% receive paid sick leave .

Hotel Industry Trends and Projections

In 2019, the global hotels and resorts market was worth over $1.5 trillion.

This was just before the COVID-19 pandemic caused widespread lockdowns in 2020, and it was the pinnacle of seven years of nearly continuous growth.

From 2021 to 2025, the global hotel and travel accommodation industry is projected to have a CAGR of 7%.

This will result in a market value of $1.05 trillion in 2025. In 2020, the global hotel and travel accommodation market was worth $673.02 billion, and it grew to $801.9 billion in 2021, which is a CAGR of 19.1%.

In 2020, travel and tourism contributed $4.671 trillion to the global GDP.

While this is a significant amount of money, it is also a significant decrease from the $9.17 trillion it contributed in 2019. This is a result of the 2020 COVID-19 lockdowns that significantly reduced the amount of travel in the world.

From 2008 to 2018, the number of hotels around the world has increased by nearly 14,300.

Hotel Industry Statistics FAQ

What is the growth rate of the hotel industry?

The growth rate of the hotel industry is 19.1%. This was the CAGR from 2020 to 2021 as the global hotel industry reopened after the COVID-19 pandemic lockdowns began to lift.

What are the four segments of the hospitality industry?

The four segments of the hospitality industry are Food and Beverage, Accommodation (also referred to as Lodging), Travel and Tourism, and Entertainment and Recreation.

You don’t necessarily have to be traveling to enjoy the hospitality industry’s offerings. The Food and Beverage sector, for example, includes restaurants , bowling alley food, and concessions stands, not just hotel restaurants. As a result, this is the largest sector of the hospitality industry.

The Accommodation or Lodging sector includes hotels, campgrounds, rental homes, and any other facility that gives people a place to sleep. This includes resorts, motels, and hostels all alike.

The Travel and Tourism sector covers the actual act of traveling via airlines, cruise ships, trains, taxis, and more. Whether you’re traveling for leisure or business, chances are you’ll utilize at least one of travel and tourism’s offerings on a trip.

The last sector of the hospitality industry is Entertainment and Recreation. This sector is made up of all the activities that people do just for the enjoyment of it. These include:

Swimming pools

Spectator sports

Movie theaters

Participatory sports (e.g., scuba diving, golf, tennis)

Amusement parks

How many American hospitality workers were fired or laid off in 2020?

10.65 million American hospitality workers were fired or laid off in 2020. While About 1.2 to 1.4 million people in this industry lost their jobs each quarter throughout 2019, 1.695 found themselves unemployed in Q1 2020, and a whopping 6.331 million were suddenly unemployed in Q2 2020 due to the COVID-19 pandemic lockdowns.

Is the hotel industry recovering?

Yes, the hotel industry is recovering. The global hotel and travel accommodation industry is expected to have a CAGR of 7% from 2021 to 2025.

What are the latest trends in the hotel industry?

The latest trends in the hotel industry are high-tech, green facilities, alternative accommodation options, and incorporating experiences into hotel stays.

Hotels are beginning to implement more and more smart technology, whether it’s a keyless entry or turning on the AC with an app. In addition, many hotels are looking for ways to reduce their carbon footprint by conserving water, reducing single-use plastics, and earning their LEED certifications.

Another hotel industry trend is that travelers (especially millennials) are looking more toward alternative accommodation options, whether that’s a rental house or villa, a mobile home, or hotels with a personality that reflect the local culture rather than standardized branding.

Hotels are responding to this by focusing on opening boutique hotels and facilities that bring unique elements to their decor, amenities, and even floor plans.

The hotel industry is a major player in the global and U.S. economies. In 2022, the global hotel industry was worth more than $4.548 trillion and is projected to see a CAGR of 7% from 2021 to 2025. In the U.S. alone, the hotel and motel industry is worth $177.6 billion, and the tourism industry is worth $545.11 billion.

Lockdowns in response to the COVID-19 pandemic in 2020 significantly impacted this industry. The worldwide travel and tourism industry contributed $4.671 trillion to the global GDP in 2020, which is just over half the amount it contributed in 2019 ($9.17 trillion).

In the U.S., over seven million leisure and hospitality industry employees lost their jobs during the first six months of 2020, compared to the just over five million that found themselves unemployed throughout all of 2019. Hotel occupancy rates also dropped by 33.3% from 2019 to 2020.

Eventbrite. “ Millennials: Fueling the Experience Economy. ” Accessed on February 16, 2022.

Medium . “ The Importance of Imagery on Hotel Websites. ” Accessed on February 16, 2022.

Frederic Gonzalo. “ Photos Impact Bookings More Than Reviews. ” Accessed on February 16, 2022.

Statista. “ Occupancy Rate of the Hotel Industry Worldwide From 2008 to 2019, by Region. ” Accessed on February 16, 2022.

IBISWorld. “ Hotels & Motels in the U.S. – Number of Businesses 2005-2027. ” Accessed on February 16, 2022.

Statista. “ Number of Hotel Rooms in the United States From 2017 to 2020, by Chain Scale Segment. ” Accessed on February 16, 2022.

IBISWorld. “ Hotels & Motels in the U.S. – Market Size 2005-2027. ” Accessed on February 16, 2022.

Statista. “ Market Size of the Tourism Sector in the United States From 2011 to 2020, with a Forecast for 2021. ” Accessed on February 16, 2022.

Statista. “ Occupancy Rate of Hotel Industry in the United States From 2001 to 2020. ” Accessed on February 16, 2022.

U.S. Bureau of Labor Statistics. “ Accommodation: NAICS 721. ” Accessed on February 16, 2022.

U.S. Bureau of Labor Statistics. “ Economic News Release: Employment Situation Summary. ” Accessed on February 16, 2022.

U.S. Bureau of Labor Statistics. “ Databases, Tables & Calculators by Subject: Gross Job Gains for the Leisure and Hospitality Sector in the U.S. (Rounded to the Nearest Thousands.) ” Accessed on February 16, 2022.

U.S. Bureau of Labor Statistics. “ Databases, Tables & Calculators by Subject: Gross Job Losses for the Leisure and Hospitality Sector in the U.S. (Rounded to the Nearest Thousands). ” Accessed on February 16, 2022.

U.S. Bureau of Labor Statistics. “ Leisure and Hospitality. ” Accessed on February 16, 2022.

IBISWorld. “ Global Hotels & Resorts – Market Size 2005-2027. ” Accessed on February 16, 2022.

Globe Newswire. “ Global Hotel and Other Travel Accommodation Market Report 2021: Market is Expected to Grow From $673.02 Billion in 2020 to $801.9 Billion in 2021 – Long-term Forecast to 2025 & 2030. ” Accessed on February 16, 2022.

Statista. “ Total Contribution of Travel and Tourism to Gross Domestic Product (GDP) Worldwide From 2006 to 2020. ” Accessed on February 16, 2022.

Statista. “ Total Number of Hotels Worldwide From 2008 to 2018. ” Accessed on February 16, 2022.

Hospitality Net. “ What Are the 4 Segments of the Hospitality Industry. ” Accessed on February 16, 2022.

Hotel Tech Report. “ 100 Hotel Trends You Need To Watch in 2022 & Beyond. ” Accessed on February 16, 2022.

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Abby is a writer who is passionate about the power of story. Whether it’s communicating complicated topics in a clear way or helping readers connect with another person or place from the comfort of their couch. Abby attended Oral Roberts University in Tulsa, Oklahoma, where she earned a degree in writing with concentrations in journalism and business.

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Reality Distortion in Travel: When Luxury Isn’t What it Seems – And How to Fix it

Colin Nagy, Skift

April 29th, 2024 at 3:26 PM EDT

Follow the writers doing good work. Support brands that are carving out unique spaces. Celebrate the poetry when you see it.

On Experience

Colin Nagy, a marketing strategist, writes this opinion column for Skift on hospitality and business travel. On Experience dissects customer-centric experiences and innovation across the luxury sector, hotels, aviation, and beyond. He also covers the convergence of conservation and hospitality.

You can read all of his writing here .

Luxury hospitality has always been image-based. But recent trends have created jarring distortions that make it hard for guests to understand reality. 

This is made worse by the surge in new properties and their marketing budgets: Great properties don’t get the attention they deserve, and others serve up superficial goods but fail to deliver.

I’ve broken down these reality distortion fields into a few main areas:

The Pervasiveness of the Age-Old Influencer Strategy:

It may seem surprising, but the 2010-era influencer strategy is alive and well. Communications teams invite people with large social followings to show up, get comped, and chomp shrimp cocktails without really caring about the brand they are aligning with. 

There is a danger in this. You want people associated with your brand who share your values. But when you cater only to the volume of followers, you’re outsourcing to hired guns who may easily show up at competitors tomorrow. 

Additionally, brands should note that the next generation of luxury consumers, Gen Z and Alpha, are not interested in hyper-stylized, performative image-making of old. Much of their social usage is deliberately de-polished, and perfect postings are increasingly seen as millennial cringe.

The Fix: Foster fewer, better relationships with creators based on shared cultural and aesthetic vision and a deep understanding of your audience. Internalize the nuances and codes of the new generations that will be spending money on your properties.

The Decline of Objective Travel Media:

I love and support great travel writing and always will. But many formerly great publications have vanished – like Departures – and many other travel publications fall victim to chasing page views. (If you see an article promising 5 ways to dress for a free upgrade, trust me, it’s not happening.)  

“Contributor network” articles in a brand name business publication are often the dirty little secret of the industry. What was once a prestigious name in publishing now houses PR friendly reviews. Thoughtful commentary on hotels (that aren’t regurgitated releases) and longer-form narrative journalism are disappearing. Good writing is in crisis. 

The Fix: Support and follow the writers, regardless of the publication, who are doing good work. Names I follow and trust: Chris Lord , Mary Holland , and Chris Wallace . 

Understand the new spheres of influence where good travel writing is happening. Much of it is occurring in bottom-up media on platforms like Substack. Publications such as Yolo Intel and Happy Hoteling provide valuable insights without the page view pressures and broken economic model of traditional media.

The Sea of Sameness in Brand Positioning and Codes:

Some of the problems with the reality distortion field in travel stem from within the industry itself. The killer is calling from inside the house! 

There is an undifferentiated mass of value propositions hiding behind images that look the same, and interiors that are rinse and repeat. Too many of these brands feel like they were created as a result of focus group PowerPoint presentations vomited into the world.

The Fix: Support brands that are carving out unique spaces. You can tell when there is still some creative or entrepreneurial soul in the mix, and the brand isn’t entirely run by number crunchers or those most concerned with scale and upside. Celebrate the poetry when you see it. 

An Obsession with Lists:

This is perhaps the most uncomfortable truth for the industry. The obsession with lists has gone too far. While it feels good for people to share on LinkedIn when their property is recognized, the sheer volume of lists, the pay-for-play behind them, and the outright bad information have reached a boiling point. 

I recently visited a property I won’t name, which placed at the top end of the American version on a prominent version of the Top 50 lists. This was not even close to a “Top 5” experience. 

Another unintended consequence of this obsession is that guests have unreasonable expectations, and frontline staff can’t live up to them. It’s possible to become crushed under the weight of these expectations.

The Fix: Ideally, there would be fewer lists. However, it seems that more credibility, objective transparency behind the criteria, and more editorial rigor are vital. Michelin has the potential to build on what it has done for restaurants with its new “key” awards for hotels.

The craft of luxury hospitality is a special one. By definition, at its best, it creates rare experiences. However, in the increasing commodification, the resulting reality distortion fields harm both consumers and the long-term health of the brands themselves. The entire ecosystem needs a few nips and tucks to avoid veering into outright deception.

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Tags: hospitality , luxury , luxury hotels , On Experience , tourism