Republic of the Philippines

ISABELA STATE UNIVERSITY

Macro Perspective of Tourism and Hospitality

I. Module 4: THE TOURISM AND HOSPITALITY NETWORK AND SUPPLY COMPONENTS

II. Introduction

The travel industry is a tourism and hospitality network encompassing both the public and private sectors.
Businesses and organizations can be thought of as components of the travel industry and categorized as direct
providers, support services and tourism developmental organizations. The first category involves organizations
that provide services or products directly to the travelers. The second category provides goods and services for
both the travelers and for organizations that send goods and services directly but not exclusively to tourists. The
traveler receives the service indirectly through these support services. The third category affects the other two
categories, both directly and indirectly, as well as the travelers. Thus, all aspects of the tourism and hospitality
network are affected by decisions of government agencies and planners.

Tourism and hospitality supply components are classified into five main categories: natural resources,
infrastructure, transportation, superstructure, and hospitality resources. Natural resources include climate,
topography, flora and fauna, lakes, rivers, volcanoes, waterfalls, caves, and canyons. Infrastructure consists of
facilities that are underground or on the surface, such as water, power, communications systems, sewage and
drainage, streets, highways, and bridges. Hospitality resources refer to the general feeling of being welcomed that
tourists receive in a destination area. It can be improved by providing a program of hospitality training to tourism
and hospitality personnel and encouraging positive feelings toward tourism and hospitality and tourists by the
general public. Transportation includes passenger transportation facilities used on land, air, and sea.
Superstructure refers to facilities that are above the ground. Examples are hostel and other types of
accommodation, restaurants, and shopping centers.

III. Learning Objectives

At the end of this chapter, the students should be able to:

1. discuss the direct and indirect components of the tourism and hospitality network;

2. explain the tourism and hospitality supplycomponents;

3. compare the different types of tourist accommodations;

4. enumerate and describe the classifications of hotels; and be acquainted with the basic standard
requirements for restaurants.

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IV. Learning Content
 Tourism and Hospitality Components
 Tourism and Hospitality Supply Components
 Natural Resources
 Hospitality Training
 Training
 Transportation
 Superstructure

V. Teaching and Learning Activities

Tourism and Hospitality Components

The travel industry is a tourism and hospitality network, which includes both the public and private sectors.
Gee, Choy, and Makens .(1997) define the travel industry as "the composite of organizations, both private and
public, that are involved in the development, production, and marketing of products and services to serve the needs
of the travelers." This definition is illustrated in Figure 3 which clearly identifies both the direct and indirect
components of the travel industry. Businesses and CffP0rations are regarded as components of the travel industry
classified as direct providers support services, and developmental organizations.

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 The first category, direct providers, include businesses that are associated with travel, such as airlines,
hotels, restaurants, ground transportation, travel agencies' and retail shops. These businesses provide services,
activities, and products that are consumed and/or purchased directly by travelers. They represent the sectors of
the industry that are visible to the travelers.

The second category, support services, lend support to direct providers. 11t includes specialized services
such as tour organizers, travel and trade publications, hotel management firms, and travel research firms. It also
includes basic supplies and services, such as contract laundry and contract food services. Support services provide
goods and services for both the traveler and for organizations that sell goods and services directly but not
exclusively to tourists. A good example are tour wholesalers who prepare tours and instead of selling them directly
to the public, they sell the tours through a travel agency. Thus, the traveler receives the service indirectly through
these support services.

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 The third category, tourism developmental organizations, is different from the first two, since it includes
planners, government agencies, financial institutions, real estate developers, and educational and vocational
training institutions. These organizations deal with tourism and hospitality development, which tend to be more
complex and broader in scope than the production of daily travel services. The decisions and results of tourism
and hospitality development are more long-term in nature than the first two categories which deal more with
operators.

Tourism and Hospitality Supply Components

Tourism and hospitality supply components are classified into five main categories:

1. Natural resources — include elements in an area for the use and enjoyment of visitors such as
climate, landforms, terrain, flora, fauna, bodies of water, beaches, natural beauty, and water supply for drinking,
sanitation, and similar uses;

2. Infrastructure — consists of all' underground and surface developmental construction such as

water supply systems, sewage disposal systems, gas lines, electrical and communications systems, drainage
systems, and other constructed facilities such as highways, airports, railroads, roads, drives, parking lots, parks,
night lighting, marinas and dock facilities, bus and train station facilities, and similar tourist service installations;

3. Superstructure — is the above ground facility services such as airport buildings, passenger traffic
terminals, hotels, motels, resorts, restaurants, shopping centers, places of entertainment, museums, stores, and
similar structures;

4. Transportation and transportation equipment — include items such as ships, airplanes, trains,
buses, limousines, taxis, automobiles, cog railways, aerial tramway, and similar passenger transportation facilities;
and

Hospitality resources include the cultural wealth of an area which makes possible the successful hosting
of tourists. Examples are the welcoming spirit of tourist business employees, attitudes of the residents toward
visitors, courtesy, friendliness, sincere interest, willingness to serve and to get better acquainted with visitors, and
other manifestations of warmth and friendliness. Also included are the cultural resources of an area such as fine
arts, literature, history, music, dramatic art, dancing, and shopping.

Natural Resources

The natural resources of a destination area provide an excellent asset to sell to tourists. The physical
characteristics of an area can be generalized as natural scenery climate, and environment. The natural scenery is
a combination Of the general topography, flora and fauna, proximity to lakes, rivers, seas, islands and islets, hot
and mineral water springs, caverns, waterfalls, and the like. The greater the variety and uniqueness of the scenery,
the more appealing it is. The appeal can be increased if the area has a "comfortable" climate. A comfortable cold
climate is determined by the wind-chill factor—a term used to express how temperature feels to the exposed skin.

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A comfortable warm climate is determined by the combination of humidity, temperature, and wind. A notable
example is the Caribbean because, although many of its islands are in the tropical zone, the wind currents make
it more comfortable than the temperature and humidity would show. Water plays an important role in forming an
attractive landscape. The sea, lakes, and rivers not only add to the visual beauty of the region, but also offer the
possibility of swimming, sailing, canoeing, and fishing. Thus, large bodies of water have become popular such as
Taal Lake in the Philippines and Lake Geneva in Switzerland.

Specific natural phenomena such as volcanoes, waterfalls, caves, and canyons also attract tourists.
Examples are the Pagsanjan Falls in the Philippines, Grand Canyon in the US, Niagara Falls in the US and Canada,
and the Great Barrier Reef of Australia.

The particular fauna or flora of a region often draws tourists. Kenya and other countries of Southern Africa
and their wildlife safaris are increasing in popularity, the camera being substituted for the gun. The Amazon, with
its exotic rainforest-vegetation and its wildlife, is attracting several tourists. The same is true with the tulip fields Of
Holland and the cherry blossoms of Japan.

Infrastructure

Infrastructure consists of all the underground and surface developmental construction of a region, which
is made up of water systems, communication networks, healthcare facilities, transportation terminals, power
sources, sewage/drainage areas,

1. Water. Sufficient quantity of pure water is essential. A typical resort requires 350 to 400 gallons
of water per room per day. An 18-hole golf course will require 600,000 to 1 million gallons of water per day,
depending on the region on which

2. Power. The important things to consider are that adequate supply of power is available to meet
peak load requirements, that continuity of service is and that the type of power supplied is compatible with that
used by the target market of the destination.

3. Communication. It is necessary that the telephone and/or telegraph service is available.

4. Sewage/drainage. Sewer demand is often placed at 90% of domestic water demand. Although water
storage reservoir and sewage treatment plants can be designed on the basis of maximum average demand,
transmission lines must be designed on the basis of maximum peak demand.

5. Healthcare. The type of healthcare facilities provided will depend on the number of visitors expected,
their ages, the type of activities in which they will engage, and local geographical factors.

6. Streets/highways. The availability of first-Class roads adds greatly to the accessibility of a region. The
following are certain ways to make the use of highways more interesting to tourists:

a. provide close-up range views of local scenes;

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 b. change the elevation;

c. develop viewpoints and overlooks;

d. independently align dual-lane highways to fit into the land contour; and

e. select thin trees to reveal views. Design a dual system of higher speed lanes flanked by roads
for low-speed local traffic. Roads should be engineered for safety, taking appropriate measures designed to
safeguard the highway user.

7. Transportation terminals. The following are the problems in terminal facilities and ground transportation:

a. General. There is an almost complete lack of Coordination among the three modes of air, rail,
and bus. There is also a noticeable lack of consistency in standards and procedures within each mode. Directional
and informational signs are not uniform throughout the system; public address announcements are often
unintelligible.

b. Air. Long walks are required.in many terminals.

c. Rail. Parking is inconvenient and inadequate near larger terminals; use of facilities by local
transients and inadequate cleaning procedures lead to crowded and unsanitary waiting rooms and restrooms;
security to prevent thefts is lacking; information and directional maps are not provided in most rail terminals; special
transportation to and from rail terminals is not provided; and urban transit and taxi service are often inadequate.

d. Bus. Terminals are dirty and crowded due to use by unauthorized people and to inadequate
cleaning procedures; boarding gates lack a system of orderly procedures resulting in crowding when passengers
are boarding; and inadequate protection is afforded to passengers against traffic.

The following suggestions with regard to terminals and ground facilities may serve as a guide in providing
adequate services:

 Full information about facilities, terminal location, and local transportation at destination should
be made available to all originating passengers; A security system should be provided to prevent
theft and misleading of checked baggage at terminals;
 The information system should provide data on connecting or alternative rail and bus service, -
including information on fares and schedules;
 A system of standard signs and symbols should be developed and installed in all airterminals;
 Rapid updated arrival and departure information should be available on posted information
boards, through public address announcements and to telephone callers;
 Personnel should always be available to assist passengers especially the aged, handicapped,
and non-English speakers;

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  Complete information should be provided on the locations, fares, schedules, and routes of local
transportation services; and
 City maps should be made available to tourists.

8. Security. While on vacation, tourists are in an unfamiliar environment. Because of this, the need for
assurance regarding their safety is -important. The image gained of the destination may be distorted. In addition,
the costs of medical care are so expensive that concern about health in foreign countries may generate additional
fears. Insecurities about food, water, or police protection may prevent visitors from visiting. It is necessary that the
basic need for security and safety be considered and assumed to make the potential tourist feel secure before and
during the vacation.

Hospitality Resources

Hospitality resources refer to the general feeling of being welcomed that the visitors receive while visiting
a destination area. It is the Way that tourist services are delivered by service providers, as well as the general
feeling of Warmth from the local population. Tourists will have a more enjoyable vacation if they feel welcomed by
the host population and will certainly feel awkward and unhappy if they feel rejected.

Hospitality resources can be improved by training tourism and hospitality personnel to be hospitable to
encourage positive feelings toward tourism and hospitality and tourists by the general public.

Hospitality Training

Hospitality training aims to motivate service providers to be hospitable in dealing with tourists. It is
assumed that providing more hospitable services will result to a more satisfied tourist who will be inclined to return
and advertise to other potential tourists through word of mouth.

To enable service providers to render hospitable services, it is necessary to change their present
behavior. This change of behavior is brought about by a change in attitude and an increase in the level of
knowledge. The three aspects of attitudes are toward self, toward others, and toward the tourism and hospitality
industry.

Attitude Toward Self

If an individual's self-esteem or attitude toward self is low, that individual will tend to behave in such a way
that the feedback from others will confirm the low opinion of himself. Hence, it is necessary to change the
individual's perception of self in order to improve his behavior. If service providers can be made to believe that they
and their work are important, their work and their actions toward tourists will reflect this feeling. If service providers
can be viewed as hosts and hostesses rather than Just" employees, their self-image may be raised. The fact that
dealing with and serving people is a very difficult task should be stressed. Although it is relatively easy to deal with
a satisfied guest, it is very challenging to deal with visitors who are dissatisfied or are very demanding. The ability

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to satisfy guests is a very demanding task. People who can do this have skills that should be highly regarded by
themselves and by others.

Attitude Toward Others

The second aspect is the attitude toward others. Service providers should be assisted in developing
positive feelings toward fellow employees and tourists that will result in positive behavior toward the tourists. This
can be achieved by training the individual regarding teamwork and interdependencies in getting the job done.

The key to the development of positive attitudes toward visitors is to be able to develop the ability to put
oneself in the visitor's place. Role-playing can be used for this purpose. If the service providers can empathize with
the tourists, accept tourists as they are, understand that for tourists, the vacation is something that they have saved
up for the whole year or for a lifetime, and appreciate how tired they may be after a long trip, then, the attitude is
likely to be more positive.

Attitude Toward the Tourism and Hospitality Industry

The third aspect is the attitude toward the tourism and hospitality industry. A positive attitude as service
providers toward tourists can be brought about only when employees are made aware of how important tourism
and hospitality is to their country, city, and community. By being aware of the amount of revenue, jobs, taxes
generated, and the dispersion of the tourist dollar throughout the community employees may become convinced
of the economics and social significance of the industry of which they are a part of.

To facilitate a change in attitude, it is necessary to raise the level of knowledge of the individual. This may
be done in group sessions or through a variety of audiovisual means. To be able to give advice or directions to
tourists, employees can familiarize themselves with the surrounding attractions and services through familiarization
tours. Employees should be instructed in group sessions with regard to verbal and nonverbal behavior since many
of them are unaware of the negative messages their facial expressions or posture give to tourists. With increasing
the level of knowledge and teaching hospitable behavior, it is hoped that the hospitality behavior level of service
providers will be raised.

Community Awareness Programs

Although the tourists are most directly affected by the degree of hospitality shown by service providers,
the overall feeling of being welcomed within a community will also enhance or detract from the vacation experience.
Residents of a destination area cannot be trained to act in a hospitable manner toward tourists, but a community
awareness program can help develop a more positive attitude toward the tourists. The aims of the program are to
build acceptance of tourism and to build an understanding of the tourists.

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 An acceptance of tourism and hospitality cannot be built unless the benefits of tourism and hospitality are
made clear to the members of the community. The benefits of tourism and hospitality are many, yet many people
do not realize that they are positively affected by it. It is necessary to convince the local citizens of the importance
and relevance of tourism and hospitality to them.

An understanding of who the tourist is can bring about a greater acceptance of the visitor. Knowing why
people visit may result in a stronger civic pride.

There are various ways to communicate with the local community. Public meetings can be held to discuss
particular problems. A speakers' bureau composed of tourism community leaders who can talk to community
groups may be organized. Information sheets and newsletters can be distributed throughout the destination area.
Whatever method is used, the main objective is to create a feeling of being welcomed for the tourists within the
community.

Transportation

Transportation is of paramount importance in developing tourism and hospitality Tourists need easy
access to various forms of transportation, such as road, rail, air, and water. Thus, the amount of time from major
population centers via each mode of transportation is important. It is important to have convenient access and
quality service. The cost of reaching the destination and staying there must also be considered. This should include
special needs, such as road tolls, gasoline stations, repairs, parking, car rentals and charter, and scheduled bus
services.

Land Travel

1. Taxi and Limousine Service

Adequate taxi and limousine service are important in a tourist area. Taxis should have removable and
washable seat covers so that they will present a clean appearance to the passenger. The taxi driver should always
be courteous and helpful. He should open the door for the passenger and assist him in getting the baggage from
the trunk. Taxi drivers should be trained in foreign language. If the drivers are generally weak in foreign language
ability, hotels can cooperate by providing written directions for the tourists to give to the taxi driver regarding his
destination and another written direction for the tourists to give to the taxi driver to return to the hotel at the end of
the trip.

2. Bus Service

Tour buses should have large windows, comfortable seats, air-conditioning unit, and restroom facilities.
Springs and other suspension systems in the tour buses should be carefully designed to prevent joggling of

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passengers. Multilingual services or multilingual tape-recording facilities with earphones for each passenger are
desirable for touring areas where an interpretation of the points of interest is necessary.

Persons assigned to the buses should be selected for their appropriate temperament, courtesy, and
hospitality. Tour guides and interpreters should be properly trained and educated for their job to avoid the faulty
interpretations of the tourist attractions. A program of certification for tour guides should be conducted by a special
school or provided in the curriculum of an institution of higher learning. In such a program, competent instructors
should be hired to educate future guides in the history, culture, and the political and economic systems of the
tourist areas. Adequate knowledge of difficult languages is also an important qualification.

3. Rail Services

The majority of seasoned travelers prefer to travel by train because of its safety record and the
convenience and satisfaction of viewing the scenery from a comfortable air-conditioned car. The appeal of rail
travel has been further enhanced by the recent introduction of high-speed train9.

Adequate taxi, limousine, or bus services from the railroad station to the hotels are very important. These
services must be frequent enough to avoid fear on the part of the traveler that he will not reach his hotel at once.
Such services should also be available to transport him from the hotel to the railroad station to allow him to board
his train.

Air Travel

Porter service is important at air terminals. The porters' helpful behavior and attitude are essential and
their training and supervision should be adequate.

Although airport facilities differ from place to place; the comfort of travelers should always be kept in mind.
In a hot climate, the airport must be completely air. conditioned and in a cold climate, adequate heat should be
provided.

Large airports provide comfortable and attractive waiting areas, as well as information regarding flight
details.

Sea Travel

Sea travel is a major factor in tourism and hospitality. Examples of these are the Manila Bay Sunset
Cruise in the Philippines, the Miami Cruise in Florida, the Rhine River Cruise in Germany, and the Canal Cruise in
Holland.

Cruise ships have developed into "floating resorts" or "floatels." Because of this idea, the demand for sea
travel has increased and cruises became popular in recent years. The luxurious way of life will have a large market
as soon as wealth and leisure time increases.

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Superstructure

Accommodation

While away from home, the tourist needs to eat and sleep. Sleeping accommodations range from hotels
of international standards and condominiums to campgrounds and the homes of relatives and friends. For a tourist
region to succeed, a sufficient quantity of accommodations of the right quality should be provided for the needs of
the tourists.

The demand for accommodations varies according to the price the guests are willing to pay, services
required, and similar considerations. The type of accommodations provided is also partly determined by what
competitors are providing. An important thing to remember in marketing is that the facilities should at least equal
those provided by the competition for the same market.

Appropriate accommodations should be available for all segments of the market Expensive hotel
accommodations may be demanded by those who want the best and are willing and able to pay accordingly. On
the other hand, tourists who are unable or unwilling to pay for expensive accommodations should have cheap
facilities available.

In planning accommodations, the nature of the environment, the destination, the expected markets, the
mode of transportation, the type of activities engaged in at the destinations, and other related factors determine
the type of accommodations which shall be made available.

Types of Accommodations

Tourist accommodations may be classified into the following categories:

1. Hotels — provide accommodation, meals, and refreshments for those who may reserve their
accommodations in advance but need not do so. In broad terms, they provide facilities that meet the needs of the
modern travelers. They portray an image of efficiency and service;

2. Condominium — is an apartment or individual dwelling unit owned by an individual but the management
and services, such as maintenance and security, are handled by an independent company. The company often
contracts to rent the condominium when it is not being used by the owner. Each owner can sell his or her unit
independently of the other owners;

3. Motels or motor hotels — provide bedrooms, bath, and parking to motorists; rooms are usually accessible
from the parking lot. They are usually near the highways;

4. Inns — are lodging establishments catering to transients which do not meet the minimum requirement
of an economy hotel;

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5. Apartments — are hotels (apartelles), buildings, or edifices containing several independent and furnished
or semi-furnished apartments that are regularly leased to tourists and travelers for dwelling, on a more or less long-
term basis and offering basic services to its tenants similar to hotels;

6. Paradores — are old convents, monasteries, castles, or fortresses converted into hotels by the
government and operated by a national tourism office. First- class paradores are found in Spain and Ireland. They
are generally priced reasonably with full-meal plans. They appeal to tourists who would like to experience the
romances and ambiances of the past in a fifteenth-century Augustinian monastery or a nineteenth-century
mansion;

7. Pensions — are private or family-operated tourist accommodations similar to boarding houses or

guesthouses. They offer food and lodging to tourists and are well-known for their informal family atmosphere;

8. Bed-and-breakfast accommodations — provide a room, bath, and a hearty

breakfast to tourists and/or travelers. They are known as B&Bs and are popular in Britain, Ireland, and
the United States;

9. Hostels— provide minimal amenities such as a bunk bed and a commonly shared toilet and bathroom.
The traveler provides his or her own bedding. They appeal mostly to young travelers;

10. Campgrounds — appeal mostly to families who travel in recreational vehicles (RVs);

11. Health spas — are hostels and resorts which cater to individuals who go to spas or mineral springs for
weight reduction or medical treatment; and

12. Private homes — provide lodging to tourists when accommodations are not available during peak periods.

Hotel Classifications

There are different ways bf classifying hotels. One way is by location, such as city center, suburban,
airport, highway, and resorts. Another way is by type Of guest, such as commercial, convention, and resort. A
more meaningful classification is one based on price such as economy or budget, standard or midscale, first-class,
or deluxe.

A star rating system is often used to classify hotels in Europe and other parts of the world outside the
United States. Stars are assigned according to the quality of restaurants, rooms, amenities, and service. The
highest is the five-star hotel and the lowest is the one-star hotel. Other classifications are deluxe, first-class,
standard, and economy.

Food and Beverage

More of the tourist dollar is spent on food and beverage than on any other service. Countries which are
highest in per capita eating place and sales are also top tourist countries.

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 The type of food service provided will be related to the needs of the tourists. Many destination areas have
successfully developed menus which are indigenous to the area to promote local economy food.

Restaurants

Besides hotels, motels, and other types of accommodations, restaurants are also classified as
superstructure. Restaurants are establishments offering refreshments and/or meals to the public.

Some of the basic standard requirements for restaurants are the following:

1. The facades and architectural features of the building shall be appropriately designed. It shall be provided
with a proper entrance and exit. There shall be an adequate and secured parking space provided free to
customers. A receptionist shall be available to usher in the guests. A waiting lounge with a telephone shall
also be provided;

2. The dining room shall be adequate in size, with sufficient and well-maintained furniture;

3. There shall be cuisine of good quality and presentation and served with distinction. There shall be a menu
book or card which shall be presentable, clean, and easy to read with the menu items listed in logical
sequence. All tables shall have clean table cloth and cloth napkins of good quality. No piece of crockery,
cutlery, and tableware in use shall be chipped, cracked, or gazed. The silverware shall be kept polished
and clean at all times; and

4. Adequate number of well-trained, experienced, efficient, and courteous staff shall be employed. The bar
shall be well-stocked at all times. The kitchen, pantry, and cold storage shall be in good operating
condition at all times and shall be of good quality fixtures and fitting and provided with running water.
Tissue paper, soap, paper towels, and/or hand drier shall be provided. All main dining or function rooms
shall be fully air-conditioned and/or well-ventilated.

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REFERENCES

Cook, Roy, Laura Yale, and Joseph Marqua. Tourism: The Business Of Travel. Upper Saddle River, New Jersey:
Prentice Hall, 1999.

Cooper, C., et al. Tourism: Principles and Practice. Essex, U.K.: Longman, 1998.

Foley, M., J. Lennon, and G. Maxwell. (Eds.). Hospitality, Tourism and Leisure Management: Issues in Strategy
and Culture. London: Cassell, 1997.

Gee, Chuck, James Makens, and Dexter Choy. The Travel Industry. New York:oohn Wiley and Sons Inc., 1997.

Hall, C. M. and S. McArthur. Integrated Heritage Management. London: Stationery Office, 1998.

Herbert, David T. (Ed.). Heritage, Tourism and Society. London: Pinter, 1995.

Jackson, Ian. An Introduction to Tourism. Victoria, Australia: Hospitality Press, 1997.

Mill, Robert Christie and Alastair M. Morrison. The Tourism System. Dubuque, IA: Kendall/Hunt, 1998.

Youell, R. Tourism: An Introduction. Essex, England: Longman, 1998.

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