Republic of the Philippines

CAVITE STATE UNIVERSITY

Bacoor City Campus
Soldiers Hills IV, Molino VI, Bacoor City, Cavite
www.cvsu.edu.ph | (046) 476 5029

BACOOR CAMPUS
DEPARTMENT OF MANAGEMENT STUDIES

BSHM 21: FUNDAMENTALS IN LODGING OPERATIONS

MODULE 1: INTRODUCTION TO HOSPITALITY INDUSTRY

Topics:

1. Definition and characteristics of hospitality industry

2. History of hospitality industry
3. Scope of the hospitality industry
4. Trends influencing the industry

Learning Objectives:

1. Appreciate the concepts and characteristics of the hospitality industry;

2. Identify the sectors and trends in hospitality and tourism; and
3. Understand the background of the hospitality industry.

Pre-Assessment:

1. How would you define the word ‘Hospitality’?

2. Where did the term originate?
3. What are the four segments of hospitality?
4. Give some current trends in the hospitality industry.

Discussion:
WHAT IS HOSPITALITY?
Hospitality
❖ The friendly and generous reception and entertainment of guests, visitors, or strangers.
❖ refers to the relationship between a guest and a host, wherein the host receives the
guest with goodwill, including the reception and entertainment of guests, visitors or
strangers.
❖ One among the oldest commercial activities in the world. A basic part and a result of the
larger business enterprise known as travel and tourism.
❖ The word hospitality is an adaptation of a French word “hospice” which means taking
care of travelers. 
Hospitality Industry
❖ Hotel, motels, inns, or such businesses that provide transitional or short-term lodging,
with or without food.
❖ A multibillion-dollar industry that depends on the availability of leisure time, disposable
income, and complete customer satisfaction. There are four segments of the hospitality
industry: food & beverage, travel & tourism, lodging and recreation.

Hospitality Management
Hospitality management is a broad field that involves overseeing the day-to-day
administrative, operational and commercial activities of businesses in the hospitality
industry. As opposed to the more narrowly focused “hotel management”, hospitality
management is an umbrella term that covers various industries such as food and
beverage, travel and accommodation and event management. The departments under a
hospitality manager’s stewardship may range from maintenance and housekeeping to
spa services, concierge, reception and many more.
(https://hospitalityinsights.ehl.edu/hospitality-management)

Characteristics of Hospitality Industry 

1. Product-Service Mix
Customers rarely rate products alone but are also critical of the way they were delivered to
them. The total delivery process consists of tangible and intangible features. The qualities of
staff and the way they executed the service are often more important than the tangible products
in making a hospitality experience satisfactory or unsatisfactory. 

2. Two-Way Communication
Participation between the customer and service staff is critical in the service delivery process.
Through interactions with customers, preferences and expectations can be discovered by a
service staff and actions toward these needs can greatly influence customer satisfaction. Active
involvement between internal staff or inter-departments is also important since total experiences
of customers in using any lodging or food and beverage services usually involve team work and
exchange of information within the organization. 

3. Relationship Building
Building long term relationship with customers can benefit the organization by sustaining a
stable revenue flow regardless of economic uncertainties. Brand reputations are also built
through positive word-of-mouth advertisement of repeat and loyal patrons.

4. Diversity in Culture
Almost on a daily basis, staff in this industry have interactions with customers from different
regions and background, from all walks of life. They even work alongside colleagues who came
from various cultures and have beliefs that are unique from their own. Due to these differences
in beliefs and values, conflicts and misunderstandings can easily occur. Therefore,
organizations should be sensitive and open-minded to come up with solutions together, to
resolve potential issues in the fullfillment of their services or duties. 

5. Labor Intensive
Naturally, since the hospitality industry is service-oriented, it requires a huge proportion of the
workforce to create memorable and personalized experiences for customers. Customers
generally expect high degree of human interaction and personalized services in their
consumption experiences.
(https://nscpolteksby.ac.id/ebook/files/Ebook/Hospitality/Tourism%20and%20Hospitality%20Stu
dies%20%282013%29/2.%20Chapter%201%20-%20Hospitality%20Industry.pdf)

Importance of Tourism and Hospitality

❖ Contribution to the balance of payments – tourism can help correct the balance of
payment deficit of many countries by earning the much-needed foreign currency in
international trade.
❖ Dispersion of development – international tourism is the best means to spread wealth
among countries therefore, bridging the economic gap between the rich and poor
nations.
❖ Effect on general economic development – expenditures by tourists can have
beneficial effects on all economic sectors and lead to the development of different
industries and other economic activities.
❖ Employment opportunities – tourism is a source of employment. It is a service industry
which could have a significant effect on those countries with surplus labor such the
Philippines. For countries where there is a high rate of unemployment and
underemployment, tourism can provide a ready solution.
❖ Social benefits – social exchange takes place when tourists come in contact with the
inhabitants of the places they visit. Their social background and their presence affect the
social structure and way of life of the local residents. In the same way, tourists are also
affected by the experience so that they often carry with them new habits and a new
outlook on life when they return home.
 ❖ Cultural enhancement – tourism emphasizes a sharing and appreciation of cultures
rather than the lack of trust brought about isolation. Through tourism, we can appreciate
the rich human and cultural diversity that the world offers, evolves a mutual trust and
respect for one another and the dignity of life on earth. Tourism likewise contributes to
the preservation and development of the world’s cultural heritage. It encourages
governments to preserve historical sites and monuments and motivates indigenous
groups to preserve their heritage in the form of dance, music and artifacts.
❖ Educational Significance – it enhances one’s education. International conferences,
seminars, and study trips held each year enable people of all nations to exchange ideas,
propose solutions to problems and share their concerns. They provide up-to-date
information for enhancing the knowledge and skills required for the development of the
tourism industry.
❖ A vital force for peace – tourism, properly designed and developed can help bridge the
psychological and cultural distances that separate people of different races, colors,
religions and stages of social and economic development.  In facilitating more genuine
social relationships among individuals, tourism can help overcome prejudices and foster
international brotherhood and world understanding. Thus, tourism can become a real
force for world peace.

HISTORY OF HOSPITALITY INDUSTRY

The hospitality industry can probably be termed as one of the pioneering commercial
undertakings of the world. It is part of the larger business initiative -- the tourism industry.

Its history dates all the way back to the Colonial Period in the late 1700s. Things have changed
quite a bit since then; the hospitality industry has experienced significant development over the
years as it has faced World Wars, The Depression and various social changes. The industry as
we know it today began to take form in the early 1950-1960s, leading the way for growth into the
dynamic industry we know today.

Early Hospitality

❖ The common mode of transport for men consisted of animals like horses and camels.
For security reasons, they would travel in groups called caravans; and would stay put at
a particular destination during the night, to avoid being looted as well as for protection
from wild animals. Due to the animals getting tired, there were constraints on the
distance that was being covered by them during day time. So, a place that offered water,
food and safety was their main anchor for the night halt.
❖ Ever since man started to travel in search of food, work, better prospects or leisure,
there has been a demand for overnight stay. 
❖ Lodging houses were built to provide accommodation along the trade and caravan route.
Missionaries and religious travelers were accommodated by local people in their houses.
❖ Warriors or traders were the early travelers but they did not have hotels to accommodate
them. The warriors used tents but the merchants sought to trade tools, clothing and
livestock and traded merchandise for lodging. 
❖ The earliest recorded inns were in 500 years B.C. They were the earliest form of
hospitality service. The term “inn” is derived from the word “malon” signifying a “resting
place for the night”.
❖ Inns at first were usually managed by families, or husband- wife teams who offered large
halls to travelers to sleep in, in the beginning with many beds, like modern dormitories.
 They also had stable facilities for the animal, for feeding, watering & to rest for the night.
Simple homely fare was offered to the visitors as refreshments, at an additional charge.

Middle Ages
❖ Religious tourism was popularized during the Middle Ages. Churches started maintaining
guest houses for pilgrims. Temples and monasteries too started providing the facility of
overnight stay to pilgrims. The Muslim rulers constructed buildings in the vicinity of
mosques for travelers.
❖ Eventually roads developed on a grander scale in around the third century A.D. and
horse-pulled carriages came into existence after the invention of the wheel. Large towns
and cities evolved and all this led to frequent travel between destinations. People who
ran inns realized that this business would yield high returns over a period of time and
started constructing large guest houses for providing accommodation to travelers.
❖ Men started travelling for trading purposes in around the 15th century A.D. and looked
for safe venues where they could rest during long voyage. They were merchants and
were not satisfied with plain inns and simple fare; they wanted something more luxurious
with delicacies for the palate.
❖ With the beginning of the 17th century A.D. comfortable and hardy carriages were
routinely used for travelling longer distances, with frequent stops at roadside inns. These
inns by now had evolved into good places of accommodation where guests could relax
in a safe environment. Inns had become more spacious and looked after the privacy of
guests. The dormitories gave way to individual bedrooms with basic furniture.

Industrial Revolution
❖ In the 18th century A.D., travel by stagecoaches became one of the most preferred
modes of transport for upkeep of roads and bridges, toll gates were put in place and
travelers using that particular stretch of road had to pay fixed amount of money. 
❖ With the development of railway services and steamships, after the Industrial Revolution
in England, road travel became less popular. Travelers preferred travelling by train as it
was more convenient, quicker and safer, hence the volume of business of inns reduced.
A few closed down, while others changed their products in order to suit the local market,
and became taverns. Soon, more and more towns and cities developed due to better
connectivity by railway, and hotels started being constructed near the railway stations.
❖ 1st hotel was built, 60-room Hotel de Henry IV in year 1788 at the cost of $ 17,500.00. 
❖ High demand was seen from taverns, inns, and coffee houses.

19th Century
❖ The 19th century saw the launch of more luxury properties like Grand Pacific, the Palmer
House, The Sherman House in Chicago and the 800-room The Palace in San Francisco.
The 450-room Statler Hotel in Buffalo, New York was the first business hotel, which
commenced operations in the year 1908.
❖ The hotel industry continued to flourish for the next few years until the Great Depression
hits America in the 1930s, which saw a lot of owners being forced to sell their hotels in
order to stay afloat. In the 1940s again the industry started picking up.
❖ In the 1970s, hotels started being built exclusively for business people. i.e. business
hotels. They started presenting a larger number of facilities, as well as greater variety of
cuisines to discerning travelers.
 ❖ In the 1980-1990s, this development continued unhindered, with more and more
properties opening up, offering a plethora of services. At a certain point of time however,
the events occurring in Middle East Asia i.e. the Gulf war adversely impacted the hotel
business. It was at this time that hoteliers started coming up with innovative marketing
strategies like tie-ups with airlines to have frequent flier programs to increase their
business.
❖ The birth of Delmonico’s in New York City that offered bilingual menu

Modern Hospitality
❖ Today there are various types of hotels; apart from resorts and motels. Airport hotels are
located near the airports. Business hotels are located near the commercial centers of
cities. Heritage hotels are those that have been converted from erstwhile castles,
palaces and forts, built before 1950. Apartment hotels have suites with kitchen facilities,
where the guests can make their own food. Casino hotels are those that have gambling
facilities on the premises. Convention hotels have plenty of space to hold large
gatherings and conferences.
❖ Campgrounds – appeal to travelers who prefer to commune with nature while on
vacation.
❖ Treetops - located in Africa, features rooms in a huge tree from which guests can watch
wild animals  feed at night.
❖ Capsule Hotel (Kapuseru Hoter) - hotel system in Japan of extremely dense occupancy;
1st Capsule Hotel was in Osaka. 

SCOPE OF HOSPITALITY INDUSTRY

1. Travel and tourism

❖ Deal with services related to moving people from place to place. Buses, cabs, planes,
ships, trains and so on are all part of the travel industry.
❖ Leisure travel is when a person spends money on lodging, food, and recreation while
taking a vacation trip, and business travel is when a person travels for work and spends
money on lodging and food. Some people also spend on recreation while on business
travel.
❖ The major function of tourism is to encourage people to travel. When people travel,
either for business or leisure, they spend money on hospitality.

1. Lodging
❖ Means accommodation for a period; a place to sleep in for one or more nights. Fancy
hotels, youth hostels, elder hostels, campgrounds, motels and other businesses that
provide a place for people to sleep overnight are all in the lodging industry.
❖ Lodging businesses cater to a wide market segment such as business travelers, leisure
travelers, long-stay travelers, budget travelers, and special travelers like people working
with the government, airlines, and military.

1. Recreation
❖ The goal of recreation is to refresh a person's body and mind. Any business that
provides activities for rest, relaxation and enjoyment, to refresh a person's body and
mind is in the recreation business.
❖ Entertainment businesses which provide shows such as movies or theater, attractions
which are places of special interest or visits on zoos and museums, spectator sports and
participatory sports are all part of recreation business.

1. Food and beverages

❖ Widely known by its initials as F&B is the largest segment of the hospitality industry.
❖ It comprises establishments primarily engaged in preparing meals, snacks, and
beverages for immediate consumption on and off the premises. When a restaurant is
part of a hotel, services it renders can enhance guest experience by providing excellent
food and first-class customer service.
 TRENDS INFLUENCING HOSPITALITY INDUSTRY

Over the past two generations, the hospitality industry has evolved to accommodate growth,
constantly changing consumer demand, and a substantially different socio-economic
environment. Let us examine some of the basic forces and key trends driving these changes in
this chapter:

1. Catering to Millennials
❖ Ages 18-34 years old are expected to represent 50% of travelers to the USA by 2025,
according to the Cornell Center for Hospitality Research. 
❖ Companies need to define their strategies based on this demographic group’s
personality traits and habits.
❖ They travel a lot and are early adopters of technology; like personalized interactions and
are spontaneous. 
❖ Hotels will want to please them with easy check-in and gourmet dining experiences at
reasonable prices. 
❖ In return, satisfied millennials will actively promote these businesses on various social
media channels.

1. Tech Explosion
❖ The majority of guests today are self-sufficient.
❖ Tech-savvy travelers are comfortable using apps or mobile websites. 
❖ Hotels need to make sure their offerings are up-to-date and user-friendly. 
❖ At business meetings and conferences, attendees expect hotels and conference centers
to have high quality tech equipment and a knowledgeable support staff.

1. Influx of International Visitors

❖ International leisure travel is on the rise.
❖ Hotels must be able to provide services in a multitude of languages, and tailored
experiences properly suited to the culture and unique needs of their international visitors.

4. Increased Emphasis on Health and Wellbeing

❖ Guests today are taking charge of their health and  hotels are responding with
well-equipped fitness centers, pools and spas. 
❖ Increasingly, travelers are expecting innovative wellness options. 
❖ In addition to healthy food options, growing trends include lighting that energizes, air
purification, yoga spaces, in-room exercise equipment and even vitamin-infused shower
water.

5. Need for seamless connectivity

❖ Seamless connectivity across platforms and devices is growing more important. 
❖ Many hotel groups are offering mobile check-in and digital concierge services.

1.  Sustainability Efforts
❖ Eco-friendly practices are becoming the norm, as properties focus on renewable energy
resources and water scarcity. 
❖ Many hotels are installing solar panels and updating systems so that air conditioners and
lights automatically switch off when guests leave their rooms.
1. New Roles for Staff
❖ Many travelers seem to prefer technology to human beings—they want to check-in
digitally and don’t mind if a robot delivers room service. This will give staff the
opportunity to focus on more personalized service, as opposed to routine tasks.

1. Destination Promotion
❖ The explosion of social media is causing hotels to become more involved in destination
and self-promotion. 
❖ Many are featuring guests’ images and tweets on their websites; some are even using
the material in their advertising campaigns.

1. Real-time Damage Control

❖ If a hotel guest is dissatisfied, he or she can easily complain on Facebook, Twitter, Yelp
or TripAdvisor. 
❖ Hoteliers must be able to quickly respond. Engaging with customers and responding to
their needs through these public forums help maintain positive guest relations and drive
future bookings.

10. Unique Perks

❖ With so many brands to choose from, properties need to find a way to stand out. 
❖ Some are offering free daily wine tasting in their lobbies or bars; some are
incorporating sophisticated informational screens in bathroom mirrors while others are
giving away set list of downloadable music.

Post Assessment: Learning Activity 1

Divide the class into three (3) groups. Each group shall form into two (2) sub-groups who shall
represent Tourist A and Tourist B. Then follow the instructions below: 
● Tourist A – You represent a 20-year-old college student from Manila. For the first time,
you visit Baguio with your cousin who is also from Manila, during the holiday sem break.
As you are a student, you travel on a budget and are planning to come to Baguio
roundtrip by drive. You plan to stay in Baguio for 3 days/2 nights. 
● Tourist B – You are a businessman from Cebu. Your enterprise is Chocolateria and
Coffee Co.. You come to Manila for an international franchising exhibition. You will fly to
Manila from Cebu and stay for two nights before you fly to Bohol for another business
meeting. You will stay in Bohol overnight before going home. 
In two minutes, write down as many as possible the specific products and services you would
require from the different sectors of the hopitality & tourism industry for your trip. Then compare
your answers with those of the other tourist’s. Do you have different or similar answers? How
many of the points you jotted down are similar to the other traveler? Use the following format: 

A Young Student (Tourist A) A Business Traveler (Tourist B)