Handout On THC 5 With Footer

]
THC 5 – MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY
_____________________________________________________________________
HANDOUT ON MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY
_____________________________________________________________________
Irene Grace D. De Jesus
COLLEGE OF HOME ECONOMICS
For WMSU Instructional Purposes Only Page 1 of 82

TABLE OF CONTENTS
Page No.
Lesson 1: WMSU Vision, Mission, Goals & Objectives ………………………………… 3 –

6
Activity 1 …………………………………………………………………….…..
7
Activity 2 ……………………………………………………………………….. 7
Lesson 2: Introduction to Tourism and Hospitality Marketing ……….………………... 8 –
11
Activity ……………………………………………………………….………… 12
Lesson 3: The importance of Tourism and Hospitality Marketing and its strategies …...13 –
16
Activity ………………………………………………………………...……..… 17
Lesson 4: Sectors and Services of the Hospitality Industry …………………………... 18 - 19
Activity …………………………………………………………………………. 20
Lesson 5: Hospitality Industry Products and their Characteristics ……………………. 21 –
24
Activity .................................................................................................……….... 25
Lesson 6: Service as a Product: Strategies and Best Practices …………………….....… 26 -
28
Activity ……………………………………………………………………….… 29
Lesson 7: Services Marketing: The difference between Services and Goods ………...... 30 -
33
Activity …………………………………………………………………………. 34
Lesson 8: What is a Marketing Concept: Definition and Examples …………….……... 35 -
37
Activity ………………………………………………………………….......….. 38
Lesson 9: Hospitality Industry: Trends and Technology ……………………………… 39 - 43
Activity ……………………………………………………………………...….. 44
Lesson 10: International Travel & Tourism: Impact on Growth
in the Hospitality Industry ………………………………………………… 45 - 51
Activity ……………………………………………………………………...….. 52
Lesson 11: Macro-Environment Trends in Hospitality & Tourism…………………….53 - 54
Activity …………………………………………………………………………. 55
Lesson 12: Food Service Industry: Trends & Analysis…………………………………...56-
69
Activity…………………………………………………………………………...70
Lesson 13: Quick Service Restaurant Industry: Trends & Analysis………………….…..71-
73
Activity …………………………………………………………………………..74

Lesson 14: Limited Service Restaurant Industry: Trends & Analysis …………………...75 -
76
Activity …………………………………………………………………………..77
Lesson 15: Global trends in Tourism……………………………………..…………….... 78-
79
Activity 1…………………………………………………………………………80
Appendices:
Rubrics for Evaluating Written Report or Presentation
………………………….81
References…………………………………………………………………..........82
WMSU Vision, Mission, Goals & Objectives
Lesson 1
Objectives
At the end of this lesson, you can:

1. Exhibit awareness and appreciation of the University Vision, Mission, Goals and
Objectives.
2. Comprehend the University Vision-Mission Statements.
3. Demonstrate understanding Course Requirements and Grading System.
Western Mindanao State University
Vision
The University of Choice for higher learning with strong research orientation that produces
professionals who are socially responsive to and responsible for human development;
ecological sustainability; and, peace and security within and beyond the region.
Mission
The Western Mindanao State University, set in a culturally diverse environment, shall pursue
a vibrant socio-economic agenda that include:
 A relevant instruction paradigm in the education and training of competent and
responsive human resource for societal and industry needs;
 A home for intellectual formation that generates knowledge for people empowerment,
social transformation and sustainable development; and;
 A hub where science, technology and innovation flourish enriched by the wisdom of
the Arts and Letters, and Philosophy.

College of Home Economics
Goal
WMSU’s College of Home Economics goal is to educate and produce competent,
forward-looking world class professionals in the field of foods, nutrition, home economics
and hospitality management.
Hospitality Management
Objectives
1. To prepare, develop, and produce students with knowledge and skills in management,
marketing, sales entrepreneurship, and other business related activities for students to be
globally competitive.
2. To equip students with culinary skills, and to develop interest, creativity, innovation, and
awareness to food safety, hygiene measures, and contribute to consumer’s health.
3. To orient and provide practical training on hospitality industry, travel and tourism industry,
food and beverages, service industry and sports, gaming and entertainment industry.
4. To inculcate corporate values and business ethics in the campus and workplace. To
promote leadership, sense of urgency, commitment and integrity.
5. To initiate/develop/utilize hospitality, travel and tourism based research projects.
GRADE COMPONENT AND CORRESPONDING WEIGHT:

For the 1st Semester, SY 2020-2021 ONLY
FINAL RATING
Midterm Grade......................40%
Final term Grade...................60%
100%
MIDTERM GRADE
 Midterm Exam (to be administered face to face).......……………… 40%
 Written Output (can be generated online or offline) ……………. 30%
e.g. quizzes, essays, case analysis, reflection paper & etc.

 Course Output/Project (can be generated online or offline)… 20%
 Participation (can be generated online or offline) ……………….. 10%
100%
FINAL TERM GRADE
 Final Exam (to be administered face to face)..............……………… 40%
 Written Output (can be generated online or offline) ……………. 30%
e.g. quizzes, essays, case analysis, reflection paper & etc.
 Course Output/Project (can be generated online or offline)… 20%
 Participation (can be generated online or offline) ………………... 10%
100%
SAMPLE COMPUTATION OF PERCENTAGE GRADE FOR A QUIZ OR EXAM
Percentage Grade = raw score / total number of items x 100

Example: raw score = 40, total items = 50
GRADE = 40/50 x 100
= 0.80 x 100
= 80%
TOTAL SCORE...............................40 correct out of 50 items

PERCENTAGE GRADE.................80%
NUMERICAL RATING..................2.00
REMARKS …………………………………. PASSED
Passing Grade = 60%

NUMERICAL
% EQUIVALENT
RATING
96-100 1.0
91-95 1.25
86-90 1.5
81-85 1.75
76-80 2.0
71-75 2.25
66-70 2.5
62-65 2.75
60-61 3.0
Below 60 5.0
Lacks requirements and/or final exam INC
Authorized Withdrawal (Dropped with permit) AW
Unauthorized Withdrawal (Dropped from class for non-

UW
attendance/non-appearance for 20% of prescribed attendance)

Activity 1
What are the good qualities that you think you possess as a student of this University? Tick
(/) the boxes below on the list of qualities that suits you.
Qualities of a Student Checklist
A positive attitude towards study

A passion for the chosen course subject
An ability to think and work independently
An inquiring mind
Good English command
An ability to work well in Groups
A good Team Player
Has Assertive mind
Sometime Reliable
GOOD JOB!
Now if you have checked Three (3) from the list = Good
If you have checked Five (5) from the list = Very Good
If you have checked Eight (8) from the list = Excellent
If you have checked all = Exemplary
Activity 2
1. Based on the first activity, list down your other qualities not mentioned and why do you
think those are important as a student of this Prestigious University.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Visualize your goals and ambitions in life, and write down why did you entrust your
education to this University?
__________________________________________________________________________
_
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
You did great!
Introduction to Tourism and Hospitality Marketing
Lesson 2
Objectives

1. Understand what marketing is
2. Gather necessary information about the four P’s of marketing
3. Learn the importance of marketing in the hospitality industry
What is Marketing?
How would you explain marketing? The first few words that usually pop into a
person’s head are ‘marketing equals sales!’ Marketing is NOT just personal selling or even
just advertising. Most people define marketing in a very limited way. Marketing includes
activities such as public relations, sales promotion, advertising, social media, pricing,
distribution and many other functions.
Marketing to children has more than doubled since 1992
Companies have increased their marketing budgets dramatically. For example, it is

estimated that companies spend over 15 billion dollars annually on marketing to JUST KIDS.
This is an increase of over 2.5 times more than they were spending in 1992. The cumulative
function of marketing is to communicate, deliver and create value to the consumer. In
addition, companies must take into consideration their employees, stakeholders and society.
The most successful companies around engage in very consumer-oriented marketing. They
spend enormous amounts of time, money and resources examining the everyday lives of their
customers and create products to fill a need. Examples of companies that are known for
creative, leading-edge marketing are Disney, Pepsi, Apple and Procter & Gamble.
Official Definition of Marketing

The official definition of marketing is it is a philosophy whose main focus is
providing customer satisfaction. Marketing is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners and society at large. Also included in the definition are all of the
activities that help businesses reach their target market effectively.
The Four P’s
The four Ps of marketing are the key factors that are involved in the marketing of a
good or service. They are the product, price, place, and promotion of a good or service. Often
referred to as the marketing mix, the four Ps are constrained by internal and external factors
in the overall business environment, and they interact significantly with one another.
The 4 Ps are used by companies to identify some key factors for their business,
including what consumers want from them, how their product or service meets or fails to
meet those needs, how their product or service is perceived in the world, how they stand out
from their competitors, and how they interact with their customers.
Understanding the 4 Ps
Neil Borden popularized the idea of the marketing mix—and the concepts that would
later be known primarily as the four Ps—in the 1950s. Borden was an advertising professor at
Harvard University. His 1964 article titled “The Concept of the Marketing Mix”
demonstrated the ways that companies could use advertising tactics to engage their
consumers. Decades later, the concepts that Borden popularized are still being used by
companies to advertise their goods and services.
When they were first introduced, Borden’s ideas were very influential in the business
world and were developed and refined over a number of years by other key players in the
industry. It was actually E. Jerome McCarthy, a marketing professor at Michigan State
University, who refined the concepts in Borden’s book and created the idea of the “4 Ps,” a
term that is still used today. In 1960, McCarthy co-wrote the book “Basic Marketing: A
Managerial Approach,” further popularizing the idea of the 4 Ps.

At the time the concept was first coined, the marketing mix helped companies account
for the physical barriers that prevented widespread product adoption. Today, the Internet has
helped businesses achieve a greater level of integration between businesses and consumers,
and also to overcome some of these barriers. People, process, and physical evidence are
extensions of the original 4 Ps, and are more relevant to the current trends in marketing.
How the Four Ps Work
Product
Product refers to a good or service that a company offers to customers. Ideally, a

product should fulfill an existing consumer demand. Or a product may be so compelling that
consumers believe they need to have it and it creates a new demand. To be successful,
marketers need to understand the life cycle of a product, and business executives need to have
a plan for dealing with products at every stage of their life cycle. The type of product also
partially dictates how much businesses can charge for it, where they should place it, and how
they should promote it in the marketplace.
Price
Price is the cost consumers pay for a product. Marketers must link the price to the
product’s real and perceived value, but they also must consider supply costs, seasonal
discounts, and competitors’ prices. In some cases, business executives may raise the price to
give the product the appearance of being a luxury. Alternatively, they may lower the price so
more consumers can try the product.
Marketers also need to determine when and if discounting is appropriate. A discount

can sometimes draw in more customers, but it can also give the impression that the product is
less exclusive or less of a luxury compared to when it is was priced higher.
Place

When a company makes decisions regarding place, they are trying to determine where
they should sell a product and how to deliver the product to the market. The goal of business
executives is always to get their products in front of the consumers that are the most likely to
buy them.
In some cases, this may refer to placing a product in certain stores, but it also refers to
the product’s placement on a specific store’s display. In some cases, placement may refer to
the act of including a product on television shows, in films, or on web pages in order to
garner attention for the product.
Promotion
Promotion includes advertising, public relations, and promotional strategy. The goal
of promoting a product is to reveal to consumers why they need it and why they should pay a
certain price for it.
Marketers tend to tie promotion and placement elements together so they can reach
their core audiences. For example, in the digital age, the “place” and “promotion” factors are
as much online as they are offline. Specifically, where a product appears on a company’s web
page or social media, as well as which types of search functions trigger corresponding,
targeted ads for the product.
Activity

State at least five (5) progressive businesses in the Philippines and write them on the table
below then indicate or specify how they have applied the 4Ps which you think has made their
businesses successful.
Business Name Product Price Place Promotion

1.
2.
3.
4.
5.
GOOD JOB!!!
The importance of Tourism and Hospitality Marketing and its strategies
Lesson 3
Objectives

1. Understand the importance of Tourism and Hospitality Marketing
2. Familiarize the different strategies in Tourism and Hospitality Marketing
Marketing a Hotel
Stacey works for a small hotel in the very large entertainment market of Las Vegas,
Nevada. She’s looking for ways to expand her reach in the community and online. She wants
to build not only awareness of her workplace but create campaigns that will entice customers
and keep them coming back for years.
There are lots of valuable marketing strategies that work well for the hospitality
industry. It’s critical to Stacey’s overall business success to create a plan that not only sells
the rooms and packages at her hotel but also promotes its overall experience.
The hospitality industry encompasses a variety of businesses, including hotels and

motels, food services, recreation outlets, and tourist destinations. It also encompasses
performing arts and spectator’s sports, museums and historical sites, amusement parks, and
gambling establishments.
Marketing in Hospitality
Because the hospitality industry focuses heavily on creating experiences and

relationships with customers and patrons, marketing that inspires customer loyalty while also
reaching out to new customers is an important part of ensuring a member of the hospitality
industry’s success.

Hospitality marketing includes not only tangible products, such as room
accommodations, tickets and food, but also intangible items such as creating a luxurious, fun,
exciting, or relaxing atmosphere. Hospitality marketing is as much about selling products to
consumers as it is creating a complete experience that will keep visitors coming back for
more. With a little research, hospitality marketers can employ a variety of strategies that will
boost awareness of their brand and encourage customer engagement, with the goal of
building life-long relationships.
The hospitality industry is legendary for its low profit margins and high level of
competition, and never was this so true as it is now. With so many small businesses going
under in the first year, small businesses in the hospitality industry must look to differentiating
themselves via marketing, and larger businesses, though they still have more wiggle room,
must make every marketing dollar count. Much of the future of hospitality marketing lies in
three major areas: technology, customer loyalty, creativity, and new concepts in the business
model.
Technology
Most hospitality professionals would rather do their core job than worry about the
company website. Like it or not, however, most hospitality businesses need an online
presence, a mobile presence, and a leadership that is in touch with how to make the most of
viral technology that can spread the word about the establishment. Having the marketing

team focus on building a website is a better use of resources than traditional advertising in
some markets.
Mobile is quickly becoming more important than desktop strategies, and—

surprisingly to some in the industry—video has become a very effective way to spread
publicity about a business. If the marketing team can attach a hotel or restaurant to a video
that goes viral, they have scored a major coup for comparatively little money; a fun YouTube
video is far less costly to produce than a television commercial and, if done well, can have far
greater reach.
Creativity
Creativity used to be thought of as not so much a marketing concept as fodder for

marketing: the business stakeholders came up with new business ideas, and the marketing
team based advertisements around them. Now, however, restaurants like Pret a Manger have
made a mark in the market by combining advertising with the restaurant’s concept itself. Pret
is an advertising concept that is built into the restaurant design, using large outdoor display
windows to highlight its unique concept of stocking sandwiches and entrees like a grocery
store, but creating a restaurant experience for customers inside. The stores are placed in high-
traffic urban areas, letting the location and design of the store itself advertise the clever
concept to passers-by. Concepts that are creative enough to serve as marketing strategies
themselves allow each aspect of the restaurant to multitask. A store design such as Pret’s is
one example; other strategies have included gimmicks that spread through word of mouth,
such as Ed Debevic’s rude waiters. Making the restaurant concept its own advertisement is
not easy, but it is a very cost-effective marketing strategy.
Customer Loyalty
Some of the above technological techniques can help build that very old-fashioned
staple of a successful business: customer loyalty. Yes, a repeat customer already knows the

business exists. However, with so many businesses in the market and so much content on the
web, part of marketing job is now connected to making sure that previous customers who
have had good experiences are reminded of them. Therefore, technology must not just be
used; it must be maximized through personalization. Allow customers to take surveys, and
insert their names and favorite menu items they have ordered in a customized group email.
Personalization of social media and email content experiences for customers are part of
making customers remember the business—and more important, they should also feel
remembered by the business.
Finally, nothing adds to loyalty, enhances creativity, and maximizes technology like a
great customer experience. Your best marketing strategy, once initial customers have been
attracted, is to ensure satisfaction in every element of service. Content may be king, but
especially with yelpers lurking around every corner, word of mouth is still one of the best
drivers of sustained business in the industry.
Activity
Answer the following:

1. Which among the three (3) major areas of hospitality marketing do you think is the most
important and why?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Explain why marketing portrays an important role in the hospitality industry.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
You’re getting better!
Sectors and Services of the Hospitality Industry
Lesson 4
Objectives
1. Identify the different sectors and services in the hospitality industry
Visiting a new location is often something we all look forward to. Whether it’s a
yearly event or something that is a rare treat, each time we jump on a plane, stay in a hotel, or
eat at a restaurant we are participating in the hospitality industry.
The hospitality industry is an industry that aims to provide excellent customer

satisfaction while providing a luxury service where the three major sectors, which are
accommodations, food and beverage, and tourism and travel are concerned.
Looking at the Hospitality Industry
When was the last time you took a vacation? Where did you go? Did you stay in a
hotel? Perhaps you went out to dinner at a fancy restaurant or took a tour of a local sweet
spot. Now think about how you travelled to your destination. Maybe you flew in an airplane
or even took a train. You might be asking yourself, what’s the connection between all of
these luxuries? Well, you see, anytime you stay in a hotel, eat in a restaurant, participate in
leisure activities, or jump on a plane, you are actively supporting and participating in the
hospitality industry. The hospitality industry is an industry that focuses on customer
satisfaction while providing luxury services pertaining to accommodations, food and
beverage services, and tourism and travel.
Accommodations & Services
There are many sectors in the hospitality industry, and each of them provide a variety
of services. One of the first ones that usually comes to mind when thinking about the
hospitality industry is accommodations. Anytime someone stays in a hotel, at a bed and
breakfast, a cabin, or even a house boat, someone is staying in an accommodation. Most
consider accommodations as a place to stay while traveling, perhaps on business, with your
family, or a getaway with friends. Accommodations should provide comfort, customer
service, and even cater to the needs of the customer.
So what kind of services does this sector offer? Well, you need your room cleaned,
which includes the cleaning staff. You need someone working at the front desk to answer
questions and check you in when you arrive. And, you even need someone working at the gift
shop should you want to purchase any essentials or a fun souvenir.
Food & Beverage

As with other sectors of the hospitality industry, the food and beverage industry is
very fluid. Catering establishments, airline dining, restaurants, dining halls, cafeterias,
lounges can all run independently or be a part of larger establishment such as a casino, resort
or cruise ship. The industry can be extremely creative and high energy, and the hours can be
sparse to gruelling depending on the season and the economy. This industry employs chefs,
cooks, event planners, bartenders, food and beverage managers, wait staff and other
supporting positions. Suppliers for this industry can also play a role in employment.
Tourism & Travel
When you took your last trip, did you do any sightseeing? If you visited an
amusement park, went to a ski resort, or decided to scuba dive, you were taking part in the
tourism part of the hospitality industry. And, if you took a plane, a train, or even a cruise ship
to get to your destination, which would be part of the travel portion of the industry.
As we move into a global economy, tourism plays a large part in how people spend
their time regarding leisure and business. As with other sectors of the hospitality industry, the
travel industry is extremely interwoven with the different sectors. Employment is vast and
always changing with technology.
Employment can come from travel agencies, modes of transportation such as the
airline industry, travel and tour guides, and any type of businesses and fields related to those
areas. It is a fast-paced sector that is always changing with the times and the economy. An
open mind to change and an inherent ability to communicate and work with others is a must
in this sector.
Activity

List down at least ten (10) employment opportunities or job positions a person can apply for
in each sector of the hospitality industry. Write your answers on the table below.
Accommodations & Services Food & Beverage Tourism & Travel
GOOD JOB!!!
Hospitality Industry Products and their Characteristics
Lesson 5
Objectives

1. Learn the different hospitality industry products and their characteristics

Hospitality
Katie and Jane are heading out on a girls’ trip to Charleston, South Carolina, for the
weekend. The hotel room is booked, entertainment has been planned, and restaurants have
been lined up for taste-testing some of the Charleston’s best dishes. Without trying to, the
girls have made plans for three of the hospitality industry’s most important sectors: lodging,
food and beverage, and entertainment.
What is the Hospitality Industry?
The hospitality industry is one of the most diverse and varied industries in the world,
employing millions of people and accounting for trillions of dollars in revenue every year.
Not only is it a great career choice for many, but it also encompasses many sectors we engage
with on a daily basis.
According to the Bureau of Labor Statistics, the hospitality industry is part of the
larger service-providing industry. It is heavily based on customer satisfaction and meeting the
needs and desires of both individuals and families, typically more in a leisure capacity than a
formal, business one.
Nature of the Hospitality Industry.
Hospitality is the act of kindness in welcoming and looking after the basic needs of customers
or strangers, mainly in relation to food, drink, and accommodation. A contemporary
explanation of Hospitality refers to the relationship process between a customer and a host.
When we talk about the Hospitality industry, we are referring to the companies or
organizations which provide food and drink or accommodation to people who are “away
from home”. However, this definition of the “Hospitality Industry” only satisfies most
situations.

Characteristics of the Hospitality Industry:
1. Intangible
2. Inseparability
3. Variability
4. Perishability
5. Heterogeneity
6. Labour Intensive
7. Relationship Building
8. Diversity in Culture
Intangibility
Service cannot be seen, tasted, heard or smelled and measured before they are
received. So, hospitality service staffs should give special attention to personalize service
etiquette, hospitality conversation, quality of service equipment, friendly environment as well
as the quality of products. The customers just feel and have experience of services provided
by service stalls. Intangibility refers to functional services that count more than tangible or
technical service. The tangible refers to hat we serve and intangible refers to how we serve. If
the guests are satisfied with the products and services they come back again and again.
Inseparability
During the guest’s service in the hospitality industry, the service staffs perform as an
actor on the stage. They possess high skills by handling the equipment to provide tangible
services. Therefore, service cannot be separated from the service providers. Sometimes guests
also are involved in the preparation of products and services. They entertain when they
involve in the preparation of products and services.
Variability
Services have highly variability the same room or food gives a different level of
satisfaction with the different customers at different times so the guests can have different
experiences. The same guest receives different feelings at different times. The quality of
service does not only depend upon what we serve also depends on how we serve. And also
depends upon how the customer receives it.

Perishability
In the hospitality industry, service cannot be stored because they are highly
perishable. Unused ‘service of today cannot be sold the next day; the guest’s rooms of hotels
are highly perishable. They cannot be stored to sale the next day. Hospitality services have a
time frame for utilization.
Heterogeneity
In hospitality industry, the system of products and services may vary from one to
another establishment. So, the guests have various options to choose from. The same soup
offered by the hotel A may be different from hotel B. The same type of guest room offered by
hotel A may have different amenities that hotel B. The facilities, the methods of preparation,
the brand, the service staff, and the complementary offered to play a vital role in the guest’s
impression.
Labor Intensive
Since the hospitality industry is service-oriented in its nature, it requires a huge supply
of labors to create a memorable experience for the customers. This characteristic is especially
true for those enterprises which target high-ended customers. For example, staff-to-guest
ratios are high in fine dining restaurants and 5-star hotels which aimed at providing one-on-
one services to their customers. Although the advancement in technology does contribute to
the replacement of some simple tasks in the whole service process, customers who concern
the element of ‘care’ generally expect a high degree of human contacts and personalized
services in their consumption experiences. It explains why the industry is always in high
demand for labor and is willing to spend time and resources in training and recruiting
potential candidates to join the workforce of the hospitality industry.
Relationship Building
The hospitality industry highly depends on repeated customers for survival. Building
long term relationships with customers can benefit the organizations for generating stable
revenues regardless of the instability of seasons and at the same time, developing brand
reputations through positive word-of-mouth of the repeated customers. In order to develop
brand loyalty, different methods are currently applied by the lodging and foodservice sectors,
such as membership programs that give privileges and incentives to frequent customers.

However, top management of organizations does believe that the informal ways of building
“friendship” between front-line staff and customers through a high degree of personal
attention and customization can win the loyalty of customers in the long run.
Diversity in Culture
Closely related to the tourism industry, it is not surprising that people involved in this
hospitality sector, no matter customers or staff are experiencing diversity in culture through
interacting with others. Staffs who work in a hospitality organization always have
interactions with customers from different regions or to work and corporate with other
colleagues who may have different backgrounds cultures. Due to their differences in religious
beliefs and values, some conflicts and misunderstandings can easily occur. Therefore, staff
should be open-minded and come up with solutions together in resolving problems in their
duties. For example: From the customers’ perspective, some of them abstain from meat due
to their religious beliefs or habit. Therefore, restaurants should provide vegetarian food as an
option in order to satisfy their needs.
Activity
Have you ever checked in a hotel before or have travelled to a different city or country?
If you have, share your experiences that relate to the eight (8) characteristics of the hospitality
industry. If you have not, what do you look forward to experience among the
abovementioned characteristic? Write your answers on the corresponding columns below.
CHARACTERISTICS EXPERIENCES
Intangible
Inseparability
Variability
Perishability
Heterogeneity
Labour Intensive
Relationship Building
Diversity in Culture
Fantastic work!
Service as a Product: Strategies and Best Practices
Lesson 6
Objectives

1. Assess how service is as a product
2. Learn the different strategies and best practices of service as a product
Service as a Product Definition
Marketing a tangible product can be straightforward and clear. The customer can see,
feel, smell, and hold a product. Marketing a service, or the act of helping out or performing
some kind of work, however, can be more challenging. Intangible services are evaluated by
personal preferences, values, and opinions.
A guest’s attitude towards a service can be greatly affected by outside factors that
have nothing to do with the service. Maybe the guest had a bad day or is tired. They will have
a different response to marketing a service than they would at other times. Having a massage
or ordering room service may not be as appealing if they aren’t feeling well or are feeling
overwhelmed.
As a result, marketers must consider how to make consumers see the service as a
more tangible item, including text and benefits that encourage consumers to see the benefits
of the service as they would a product rather than from an unattached perspective.
Let’s look at an example: If you are responsible for marketing the tour services from
the hotel, you must figure out how to make your tours and day-trips have a high value to your
guests. Rather than focusing on the intangible benefits (how the guest will feel or how
relaxing the experience will be), you create marketing pieces that focus on the more
measurable benefits. Your flyers discuss the different stops your tour will make, the things
guests will see, the information they will learn, and the celebrities they may spot. These
details give specific details.
Customer service is of vital importance to the hospitality industry. The level of

service can make or break a hospitality venture, so it is important that you tweak your
strategy till you hit near-perfection. If not, you may find yourself losing repeat customers and
prospective patrons as well.
By following these five best practices as a guide, you will ensure your customer
service achieves a certain standard that’s not only acceptable to the general public, but will
also confirm your reputation of a quality establishment.
The Five Best Practices
Start with a warm welcome
Greeting customers is the first step you must master and one that shouldn’t be taken
lightly. Remember, first impressions count – the first greeting plays an important role in
setting the tone for the clients overall experience. A good welcome will be warm, polite and
knowledgeable. However, it is all too easy to become overbearing, fake, and suffocating if
the staff members put in too much effort. It is therefore necessary to find a healthy balance,
so people come away from the experience more content and happier than when they entered
the building.
Keep employees happy

In the hospitality industry, it is all too easy to focus on your potential customers and
neglect your staff. Happiness amongst your employees will be conveyed to guests of your
business, and visitors will pick up negative energy amongst your staff all too easily. By
keeping your staff happy, it will help generate a better atmosphere and aura that surrounds
guests and make them feel more at ease and at home, thus giving them a better experience.
Exceed customer needs and expectations
In an industry that is as competitive as hospitality, it’s not enough to simply meet the
customers’ expectations of service. In order to stay ahead, you must exceed their expectations
and go above and beyond the call of duty.
For example, if there happens to be a queue at reception, offer the client a seat on the
hospitality furniture and give them a drink while they wait. It is these little touches that will
elevate you to a higher level of customer service.
Continually take on feedback

A company’s ability to take on feedback and criticism and use these to improve and
evolve is integral in maintaining customer satisfaction. It is therefore important to put in
place a way of hearing customer’s thoughts about the level of surface they received, whether
it is from an online review website or a written questionnaire card. It is then a case of
implementing changes that address the various criticisms people have so they do not happen
again.
End with a fond farewell
‘All good things must come to the end’ – well, that is what the customer must be
thinking when it comes to leaving. And what better way to sign off than with a fond farewell?
A lovely send-off will last in the minds of your outgoing customer and if done right, will only
impact your business in a positive way. One way of doing this is to use the client’s first name
and to treat them as if it was your family that was leaving.
Undoubtedly, customer service is of vital importance to the hospitality industry. The

level of service your customers receive could mean the glory or disaster of your business and
so should not be overlooked.
Activity
1. Why do you think customer service has a vital role in the hospitality industry?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Do you think following the five (5) best practices in the hospitality industry can attain
customer satisfaction and a great impression for the hotel or company? Why or why not?
Explain your answer.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
GOOD JOB!
Services Marketing: The difference between Services and Goods
Lesson 7
Objectives

1. Understand the difference between Services and Goods and how it contributes to
Services Marketing

Services Marketing is a specialised branch of marketing. Services marketing
emerged as a separate field of study in the early 1980s, following the recognition that the
unique characteristics of services required different strategies compared with the marketing
of physical goods.
Services marketing typically refers to both business to consumer (B2C) and business-
to-business (B2B) services, and includes marketing of services such as telecommunications
services, financial services, all types of hospitality, tourism leisure and entertainment
services, car rental services, health care services and professional services and trade services.
Service marketers often use an expanded marketing mix which consists of the seven Ps:
product, price, place, promotion, people, physical evidence and process. A contemporary
approach, known as service-dominant logic, argues that the demarcation between products
and services that persisted throughout the 20 th century was artificial and has obscured that
everyone sells service. The S-D logic approach is changing the way that marketers
understand value-creation and is changing concepts of the consumer’s role in service delivery
processes.
The American Marketing Association defines services marketing as an organisational

function and a set of processes for identifying or creating, communicating, and delivering
value to customers and for managing customer relationship in a way that benefit the
organisation and stake-holders. Services are (usually) intangible economic activities offered
by one party to another. Often time-based, services performed bring about desired results to
recipients, objects, or other assets for which purchasers have responsibility. In exchange for
money, time, and effort, service customers expect value from access to goods, labor,
professional skills, facilities, networks, and systems; but they do not normally take ownership
of any of the physical elements involved.
A service encounter can be defined as the duration in which a customer interacts with
a service. The customer’s interactions with a service provider typically involve face-to-face
contact with service personnel, in addition to interactions with the physical elements of the
service environment including the facilities and equipment.
7 Ps of Services Marketing
For hotels, successful marketing depends on addressing a number of key points. These
include: what a company or an industry like a hotel is going to produce; how much a hotel is
going to charge; how that particular hotel is going to deliver its products or services to the

guests; and how it is going to tell its customers about its products and services. Traditionally,
these considerations were known as the 4Ps of the hotel industry — Product, Price, Place, and
Promotion. As marketing became a more sophisticated discipline in the hospitality industry, a
fifth ‘P’ was added and implemented— People. And recently, two further ‘P’s were added,
mainly for service industries (like the hospitality industry)— Process and Physical evidence.
These considerations are now known as the 7 Ps of service marketing in the hotel industry
and sometimes referred to as the marketing mix of the hospitality industry!
In the realm of hotels, marketing is a technique of guiding the customers to choose

your goods and service rather than electing the products of your rivals. If a hotel is not
accounting for this aspect to make their brand more relevant, they are hampering their profit
level, sales, and occupancy. The key for all hotels is to search the correct channel of
marketing (which may be Display Advertising, Email Marketing, Pay-Per-Click Advertising
(PPC) or Online Public Relations) and disclosing the accurate message in order to influence
the targeted guests.
Now, saying all these let us see a wider sense of these 7 Ps.
1. Product
Product here exemplifies to the goods and services a business sells to its potential
customer. In order to peddle up the sale, one must furnish the proper and adequate
information about their particular good and service to the targeted customer. The product
must be capable of resolving and fulfilling the requirements of the customer. Component of
selling the good comprises figuring out the potential buyers in the market.

2. Price
The chunk of money that a supplier sets for his product is labeled as price. Setting the
price needs keen thought and analysis, mainly for inexperienced or new business owners who
mistakenly sense to offer the minimum price or they would end up in achieving zero sales.
Pricing is computed in many ways, like cost-plus, based on value or combative.
3. Place
The way of distributing the product is considered as the third ‘P’ of marketing that is
considered as a place. Analyzing the geographical areas where buyers look for the product
and service. It refers to the geographical location of the availability of products.
4. Promotion
The element ‘promotion’ in the marketing mix comprises the advertising and events
to support the certain service and product. Various strategies are made to promote the product
in the market. In order to make the end users aware of the product marketers initiate different
promotional strategies to uphold their goods and services.
5. Process
The process is an integrated buying exposure. From the prime segment of contact,
generally the network or website, to distribution of the good or service. Nonetheless, the
process doesn’t block there, because there’s the post sales service, and creating decent
relations with customers even after the purchasing process.
6. People
People are a defining factor in a service delivery process since a service is inseparable
from the person providing it. Thus, a hotel is known as much for its food as for the service
provided by its staff. The same is true of banks and department stores. Consequently,
customer service training for staff has become a top priority for many organizations today.
People are a very important factor in the 7 P’s because services tend to be produced
and consumed at the same time. Because of this, the behavior of these people is very
important in determining the experience of the customer.
7. Physical Evidence
Before a service is experienced, it first has to be delivered. It, therefore, means that
the process of choosing to use a service might be perceived as risky since one is buying

something that is intangible. To reduce this uncertainty, physical evidence such as case
studies should be used. This can be done by keeping the facilities clean, well decorated and
tidy. The physical evidence that is demonstrated by an organization should be able to confirm
the assertions of the customers. Although it might not be possible for the customers to
experience the service before they have purchased, the customers can talk to other customers
with experience!
Activity
1. What is the difference between services and goods?

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Which among the 7 Ps of Services Marketing do you think could contribute the least and
most in gaining a positive response from the targeted consumers in the hospitality industry?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
You’re getting better!
What is a Marketing Concept: Definition and Examples
Lesson 8
Objectives

1. Discuss what is a marketing concept and state examples

One of the biggest challenges for businesses today is attracting customers and keeping
them. They do so through effective marketing. This lesson will identify five different
approaches to marketing philosophies and provide examples for each.
A Pizza Shop
Let’s imagine that you want to open a pizza shop. You live in a suburban area with
lots of families, so you know that the potential market is good. You’ve got some savings with
which to start your business, and soon, you are the proud owner of a little shop in the center
of your town. We’ll call it Pappi’s Pizza.
Fast-forward three months. Your shop is still open, but with each month, your savings
are dwindling because you are not yet making enough profit from your small business to
cover all the expenses. You knew it usually takes about six months to get a business off the
ground, but now that the shop has hit its stride, you have some time to devote to the question
at hand: How can you best market Pappi’s Pizza to bring in new business and generate a
profit?
Marketing vs. Marketing Concepts
Marketing is the promotion of business products or services to a target audience. It is,

in short, an action taken to bring attention to a business’ offerings; they can be physical goods
for sale or services offered. Common examples of marketing at work include television
commercials, billboards on the side of the road, and magazine advertisements.
But not all businesses approach the need to market their goods and services the same
way. In fact, there are a few different approaches to how marketing can be successful for an
organization. These approaches are called marketing concepts, or a philosophy that
determines what type of marketing tools are used by a company. Marketing concepts are
driven by a clear objective that takes into account cost efficiency, social responsibilities, and
effectiveness within a particular market.
The Five Marketing Concepts
The five marketing concepts are:
1. Production concept
2. Product concept

3. Selling concept
4. Marketing concept
5. Societal marketing concept
The Production Concept
When the production concept was defined, a production oriented business dominated
the market. This was from the beginning of capitalism to the mid 1950’s.
During the era of the production concept, businesses were concerned primarily with
production, manufacturing, and efficiency issues. Companies that use the production concept
have the belief that customers primarily want products that are affordable and accessible.
The production concept is based on the approach that a company can increase supply
as it decreases its costs. Moreover, the production concept highlights that a business can
lower costs via mass production.
A company oriented towards production believes in economies of scale (decreased

production cost per unit), wherein mass production can decrease cost and maximize profits.
As a whole, the production concept is oriented towards operations.
The Product Concept
This concept works on an assumption that customers prefer products of greater quality
and price and availability doesn’t influence their purchase decision. And so company
develops a product of greater quality which usually turns out to be expensive.
One of the best modern examples would be IT companies, who are always improving
and updating their products, to differentiate themselves from the competition. Since the main
focus of the marketers is the product quality, they often lose or fail to appeal to customers
whose demands are driven by other factors like price, availability, usability, etc.
The Selling Concept
Production and product concept both focus on production but selling concept focuses
on making an actual sale of the product. Selling concept focuses on making every possible
sale of the product, regardless of the quality of the product or the need of the customer.

The selling concept highlights that customers would buy a company’s products only if
the company were to sell these products aggressively. This philosophy doesn’t include
building relations with the customers. This means that repeated sales are rare, and customer
satisfaction is not great.
The Marketing Concept
A company that believes in the marketing concept places the consumer at the center
of the organization. All activities are geared towards the consumer. A business, aims to
understand the needs and wants of a customer. It executes the marketing strategy according to
market research beginning from product conception to sales.
By focusing on the needs and wants of a target market, a company can deliver more
value than its competitors. The marketing concept emphasizes the “pull” strategy”. This
means that a brand is so strong that customers would always prefer your brand to others’.
The Societal Marketing Concept
This is a relatively new marketing concept. While the societal marketing concept
highlights the needs and wants of a target market and the delivery of better value than its
competitors, it also emphasizes the importance of the well-being of customers and society as
a whole (consumer welfare or societal welfare).
The societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices. They must balance and juggle the often
conflicting criteria of company profits, consumer want satisfaction, and public interest.
Activity
Think of a business that you would like to put up and apply the five (5) marketing concepts.
Write your answers in the corresponding shapes below.
Business Name: Type of Business:

Production concept Product concept
Selling concept Marketing concept Societal marketing concept
You’re going a long way! Keep it up!
Hospitality Industry: Trends and Technology

Lesson 9
Objectives

1. Identify and be familiar with the different hospitality industry trends and technology
Changes in the Hospitality Industry
Once upon a time, a physical metal key was needed to open the door to a hotel room.
Nowadays, in some hotels you can open your room with your phone, showing just how much
the hospitality industry has changed and continues to change. What are the current trends, or
the general direction of changes, in the hospitality industry? The main driver of trends right
now is technology. There are new devices and apps that are coming out daily that are
changing the way restaurants, hotels, airlines, and cruises are doing business. Technology is
also increasing competition in the industry as it is used by travellers who themselves are
changing.
Increase in Mobile Technology
Almost everyone has a mobile device, if not two or three. The rapidly evolving use of
mobile technology is a trend that the hospitality industry is working to keep up with.
Travelers want to be able to book their flight, car, and hotel room all from their smartphones
using the Internet or an application. This has led the hospitality industry to change to more
Internet and mobile bookings versus traditional phone bookings. For example, Mr. Smith is a
frequent traveler who travels eight months out of the year. There is a good chance that he
books all of his flights, car rentals, and hotels through his smartphone due to the amount of
time he is on the road.
The hospitality industry is following the mobile trend and adding it into their
everyday operations. For example, some hotels have kiosks that enable you to check in using
a smartphone. Hotels also use mobile technology for housekeeping to communicate faster.
Restaurants are integrating mobile technology to allow for mobile ordering and payment.
They are also using the technology to increase their efficiency. Some fast-food restaurants
have team members in the drive-through handling mobile orders to speed up the flow during
peak times.
Technology is advancing at a faster pace than ever before, and this is changing both the
expectations of patrons as well as the way in which the hospitality industry conducts its
business. Some of the trends in industry are leading to great improvements and savings for
hospitality industry companies; while some are changing how hotel developers plan their
buildings, infrastructure, management structure and staffing requirements.
Wi-Fi infrastructure overhauls
Nowadays, hotel guests who travel with devices such as phones, tablets and computers no
longer see Wi-Fi as a perk, but as a must-have when they check in at a hotel.

Hotel guests expect to be able to connect to the internet seamlessly and without too many
interruptions, leading hotels to invest in better, faster Wi-Fi infrastructure so that people can
do business and use their technology devices with ease when they book their stay.
Hotels are also starting to move away from user pay models. In the past, hotels could charge
exorbitant rates and guests knew they would have to pay if they wanted to go online.
Installing and maintaining a hotel-wide wireless network may be coupled with costs, but
many leading hotel groups have started to install high density Wi-Fi and started to offer in-
building mobile phone coverage as guests have come to expect these services during their
stay (not only for themselves, but also for their guests if they are hosting a conference or
function at the hotel). It might not yet be financially feasible for hotels to completely abandon
the user pay model, but many of them are re-thinking their current infrastructure and pricing
models.
Digital conference facilities
Besides being able to offer high density Wi-Fi for conferences and meetings, hotels also need
to be able to offer access to audio-visual (AV) and digital facilities for conferences. While the
amount of AV and digital equipment that goes into a typical conference room is fairly
minimal, staging companies are often hired for various projects in order to equip the facility
as required.
A key component in designing effective conference facilities that can accommodate this type
of technology is creating easily accessible, concealed pathways in ceilings and flooring where
adequate power and data connectivity can be facilitated. If a hotel has extensive conference
facilities, network design becomes critical to ensure indoor mobile phone coverage, Wi-Fi
connectivity, VoIP, real time location services (RTLS) and internet protocol television
(IPTV) as well as all the accompanying AV and digital equipment.
Mobile communication and automation
In many airports, it’s no longer necessary to stand in a queue to check in and people are
expecting the same kind of easy, technology-driven check-ins at hotels. Guests want to be
able to do everything from checking in at a venue’s automated kiosk to ordering room service
with a digital device instead of standing in queues and moving around the hotel premises to
order food.
Thanks to digital innovation and social media, guests also expect digital interactions with the
hotel to be personalised. When investing in digital apps for check-ins, room service and other
customer-oriented digital interactions, hotel operators are investing in systems and

technologies that can personalise the experience for guests, including a guest’s name being
displayed on the welcome desk at a digital check-in station; their food preferences or past
purchases being displayed in a digital room-service order system; and similar.
In addition, the ‘concierge in your pocket’ concept is fast gaining popularity due to its ability
to allow operators to include useful information such as surrounding entertainment venues;
medical facilities; and similar services.
Like many of the other technology trends in the hospitality industry, investing in a
check-in/concierge app requires a small initial investment and can lead to greater efficiency
and savings as hotel staff are able to focus on customer service and property developers don’t
have to create large static reception desks at each entrance and hotel location.
NFC technology
Near field communication (NFC) technology is the next-generation short-range high

frequency wireless communication technology that gives users the ability to exchange data
between devices. Communication between NFC devices can transfer data at up to 424
kbits/second and the communication is enabled when two devices touch each other, which
makes mobile payments (by touching the smart phone to a credit card) an instant, secure
process. This technology is also ideal for self-check-ins by guests at hotels as well as the next
trend in this article: smart room keys.
Besides payments and an easier way to gain entry to hotel rooms, NFC technology can also
be used to personalise a guest’s experience at a hotel or resort. For example, advertising can
be targeted based on gender and age (so if a child walks by a digital sign in the lobby, the
advertisement can change to promote a local theme park or the hotel’s kids club) and this
technology could also be used to track loyalty points from a guest’s use of the conference
facilities or room service. This opens many doors for hotels who want to offer a more
personalised experience at their establishment.
Robots and infrared sensors
Some hotels are already offering more futuristic experiences, with robots delivering any
items ordered through room service to a guest’s door. A boutique hotel that is nestled
between Apple’s headquarters and other tech companies, called Aloft Cupertino, has a robot
butler called Botlr that is able to move between the various floors of the hotel in order to take
items such as toothbrushes, chargers and snacks to guests. These types of digital systems not
only make it easy for hotel staff to deliver items to guests, but it also offers a forward-facing
digital experience to people who stay at the hotel.
Infrared scanners are now also used to minimise disruptions relating to housekeeping (which
is a common complaint from customers). Instead of hanging a ‘Do Not Disturb’ sign on doors

or having cleaning staff wake up traveling guests with knocks and phone calls, hotel staff can
take a more innovative approach by using infrared scanners that will detect body heat within
a room and tell cleaning staff that they should rather come back later if the room is currently
occupied.
Smart room keys
Hotels will increasingly install smart room access systems that allow guests to unlock their
doors by simply swiping their phones across a keyless pad on the door. Starwood (owner of
the Sheraton, Weston and “W” hotel chains) has already upgraded 30,000 room locks across
150 hotels with this system and Hilton will be implementing a similar system at 10 of their
US properties this year. In 2016, they will be deploying the smart room key technology
globally. This technology will mean that guests don’t have to worry about picking up keys
and front desk staff won’t have to issue new keys in the event that a guest loses their room
key.
Another innovative way to offer a keyless experience is through fingerprint-activated room

entry systems and retina scanning devices. Retina scanning is even more accurate and secure
than fingerprint scans and hotels like the Nine Zero Hotel in Boston have already installed an
iris scan system in place of key cards to control access to the hotel’s presidential suite.
Entertainment on tap
According to a Smith Micro Software trend report entitled The Future of Hotel In-Room
Entertainment; people are increasingly plugging in their own devices for in-room
entertainment. The hotel room’s television, radio and clock are taking a backseat as travellers
use their own technology to keep themselves entertained. An earlier survey by Smith Micro
Software showed that 81% of respondents wanted access to mobile video content at hotels
and 55% said that mobile content availability at a hotel would influence where they choose to
stay.
Cloud services
Being able to provide entertainment on tap and mobile content has led to the trend of hotels
investing in cloud services. While hotels want to be able to offer digital content, they don’t
necessarily want to invest in IT infrastructure and IT staff, making cloud computing the ideal
solution.
Not only is the initial capital investment lower than IT infrastructure and servers, but it gives
hotels the flexibility to expand and adjust their IT needs along with business growth, invest in
upgrades without causing a complete IT system overhaul and it removes the administrative
burden of managing an IT system in-house. Cloud computing is becoming the norm and we
will continue to see hotel groups replacing their legacy IT infrastructure with cloud solutions.
Feedback on social media

Technology has infiltrated almost every aspect of our lives and hotel developers need to
realise that almost any person checking in at a hotel, resort, spa or lodge, will have a
smartphone in their pockets.
Many companies in the hospitality industry are already using social media to their advantage
as guests check-in on location-based social media apps, tweet about their experience on
Twitter and share their holiday photos with friends and followers on Instagram and Facebook.
This trend will continue and hotels can expect to see even more social media engagement
from guests who use these platforms to give feedback about their experience, complain and
give compliments about their stay. Hotel staff are also expected to provide feedback and
address and complaints or queries from guests in real-time.
From an online, reputation management perspective, this is a trend that marketers and hotel
management need to manage proactively. Consumers don’t make decisions about where
they’re going to travel to or book a stay in a vacuum – they turn to community-developed
content and rating systems such as Trip Advisor and social media to make decisions about
holiday destinations, hotels and leisure. This shift has led to many hotel and leisure groups
developing active social media monitoring and communication strategies in order to stay on
top of what’s being said about them online and making sure that both marketing and
operational staff address feedback that has been given online.
An additional way in which operator can take full advantage of technology in this space is
using it to communicate how well they are doing (in real time) with respect to their various
environmental initiatives (such as real time electricity/water usage reporting, etc.)
More Competition
A new trend in the hospitality industry is the rapid growth of the industry itself. It seems like
there are new hotels and restaurants opening every day. This means more competition for
everyone. In some markets there are more hotels than demand, even in their busy season.
This makes every establishment fight even harder for their business.
Activity

1. Which among the trends and technology in the hospitality industry do you find most
helpful and which is also the least helpful? Explain you answer.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. Share what technology trends in the hospitality have you experienced and what makes it
memorable. If none, state which among them are you looking forward to experience.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Great work!
International Travel & Tourism: Impact on Growth in the Hospitality Industry

Lesson 10
Objectives

1. Assess how international travel and tourism impacts the growth in the hospitality
industry
In this lesson, we’ll examine the impact of international travel and tourism on the hospitality
industry, including growth and challenges that arise from an increase in international travel.
International Travel & Tourism
Lorrie is the CEO of a travel tour company. They give tours of cities around the United
States, and Lorrie is in charge of making sure the company continues to grow. Lorrie has
heard that international travel and tourism is a growth industry, but she’s not sure what that
means. How can international travel and tourism help her plan her company’s future?
International travel and tourism is a general term for people traveling outside of their home
country. It involves people traveling for leisure, not business. As Lorrie has heard, more and
more people are traveling internationally for leisure. This growth has an impact on the travel
and hospitality industries.
How can Lorrie’s company benefit from the growth of international travel? To help her figure
that out, let’s look at growth in the hospitality industry and challenges that international
hospitality companies face.

Hospitality Industry Growth
As a travel tour operator, Lorrie’s company arranges lodging with many different hotel
chains, some of which have locations worldwide. Lorrie is wondering if international travel’s
popularity has affected these hotel chains. The hospitality industry includes lodging, food,
and beverage services for people who are not at home. The hotel chains that Lorrie works
with are examples of lodging providers within the hospitality industry.
Growth in the area of international travel and tourism is driving growth in the hospitality
industry. This makes sense to Lorrie, since people who are traveling internationally often
need places to stay and places to eat and drink, like hotels, restaurants, and bars. Some
estimates say there will be between 3% and 4% growth in international travel in 2017. That
can represent billions of dollars spent across the world. That’s a big deal!
Challenges
Lorrie thinks her company can benefit by adding international travel packages to their
domestic ones. To do that, she’ll want to work with hospitality providers, like hotels and
restaurants, to put together a great package for her customers.
International hospitality does present some challenges. For example, multicultural issues are
common when dealing with international travel. Something as simple as how a staff
addresses visitors can be a challenge too, since some cultures find eye contact uncomfortable
or even offensive. Others believe it to be a sign of honesty and respect. People from some
cultures don’t eat meat or abstain from drinking alcohol. All of this diversity can be
challenging for international hospitality providers.
We currently live in an amazingly mobile world, in which everything is on the move and
everything changes around us at a rapid pace. The modern individual also became “global”
through the easy access to the mass-media, which distributes information, cultural values,
creates and turns lifestyles that become aspirations for most people. And since everything
around him is on the move, the individual starts to feel the need to “be on the move” himself,
to experience new sensations directly and not through a TV channel. This new desire of the
modern individual turned into today’s tourism, a complex phenomenon precisely due to
consumers’ diverse needs and increased demands that force a new development of the
industry, not only in terms of size, but also in terms of structure.
Tourism niches become more and more specialized, customer segmentation deeper and
deeper, customized on detailed profiles based on a high number of criteria. As a result, we
now have an almost endless range of types and forms of tourism, among which: adventure
travel (split into branches focused on sports and extreme sports), exploration travel, cultural
tourism (further segmented into several niches), urban tourism, religious tourism (pilgrimages
and travel to religious events), wellness tourism (including spa tourism and medical tourism).
The only constant in today’s tourism is it continuous change: an ongoing transformation of
this industry, including a series of new shapes and methods.

The tourism industry, due to its characteristics, is very sensitive to the marketing efforts;
information, the commercials and promotions are the only ways that can bring consumers to
the travel destinations, since the travel “product” cannot be sampled in advance. Barring
other sources of information, we trust the marketing messages, and their forceful nature
pushes us to act, to leave our day-to-day lives and go search for recreation through new travel
experiences. These days, tourism sells not only recreation, but also “experiences”. The
airlines, hotels, the destinations – they all promise unforgettable memories through the
experiences they offer. A hotel is not only a place to sleep, but a reason to embark on a trip in
the first place. Otherwise, why so many commercials promoting 7-star hotels? And why 7
stars, considering that no 6-star hotels actually exist? Because the most frequently used
classification system (the one using up to 5 stars to rate a location) cannot meet the clients’
expectations, who are inundates by the similar offerings from thousands of hotels, all with the
same rating. And if the stars become insufficient as well, alternatives are available: famous
names and brands, celebrity designers who connect their names with the travel industry (so
we now have Bvlgari and Versace hotels), as well as hotels that offer unique locations,
themes and construction design: boutique hotels, underwater hotels, ice hotels or hotels built
inside a cave. All these transformation occur in the background of a newly developed
worldwide mobility – waves of tourists who travel from the north toward the “sunny south”,
or to find new tourist attractions, combined with a global supply of travel destinations
throughout most regions of the planet and a massive display of travel resources (natural or
cultural) that transform the world into an enormous stage on which the key players of the
industry mimic the role of the puppeteers who guide the flows of tourists.

Tourism, Integral Part to Globalization
The growth of the global financial markets and international trade – which resulted in an
increased role of the transnational corporations and their domination over the domestic
economies – completely transformed the world, from one based on individual economies and
societies into a single large economy, governed by the special interests of corporations and
other various elites. The formerly diverse societies are becoming standardized and
homogeneous under the rule of the mass-media empires and common consumerist tendencies.
Globalization is thus creating a new social construct – the “global village” (a term
popularized in 1960 by Marshall McLuhan). Globalization brought along a standardization of
the production and a “McDonald”-ization frenzy seized the business world eager to grow
sales and profits as a result of implementing proven American business models. The impact
of consumerism, standardization, and mass-media’ manipulating effect of the masses of
consumers are seen not only in the worldwide consumption of some brands, such as Coca-
Cola, but also in the internationalization of some traditions and celebrations: the Christmas
holiday and the classic Santa Clause image are now frequently encountered on the Asian
continent, while the myth of Dracula brings significant profits to operators in countries such
as UK, Canada or Hungary – countries that were able to exploit this concept and create travel
destinations for those wanting to experiment bizarre sensations during their trip, despite being
located far from Dracula’s Transylvanian birthplace. Using economic, technological,
communication and political tools, globalization managed to eradicate any time, space,
linguistic and cultural barriers.
Perspectives on the Globalization of Tourism
Globalization was the result of the capitalist society’s desire to expand and grow, combined
with the desire for quick profits from the investors targeting the cheaper natural resources and
market potential of the poor countries and further combined with the developing and poor
countries’ desperate attempts to grow their economies by opening them to the
transcontinental flows of capital and goods, seen as engines for economic growth and higher
employment.
However, these governments are now being faced with the consequences of globalization,
risking losing their power of decision and having to take unpopular decisions that negatively
impact their own societies, but favor the multinational corporations. The countries impacted
by severe economic crises are the perfect example in this sense: placed under pressure by the
foreign investors (who show little interest in the positive economic or social impact their
businesses have on the local communities, while focusing primarily on their share of profits
from their investments) who threaten to withdraw their capital, close (or relocate) their
manufacturing facilities, these governments have little choice but to issue tax waivers,
subsidies and other fiscal measures benefiting the foreign investors, while raising the taxes
paid by the local residents or giving up legislation meant to protect their natural habitat and
resources. Such situations are frequently encountered in the travel industry, where developing
and emerging countries open their doors for foreign investments made by hotel chains, mass
tour-operators and airlines on terms very our opera to these foreign players. Undoubtedly,
these arrangements do provide benefits for host countries, contributing to their economic
development, but the negative impact at the local level is significant and cannot be ignored.

An obvious example here is the all-inclusive system used by many hotels (most of them
affiliated to an international brand) to make them more competitive and lower their prices.
Such a system tends to significantly lower the tips received by the local workforce, which are
a key source of income in the industry, thus preventing many of the employees from
achieving a middle class standard of living.
From these countries’ standpoint, their social, environmental and even economic costs are
massive and mainly influenced by the following: outgoing liquidity transfers caused by
corporations’ transfers of profits to their home countries; relatively low economic benefits
compared to the amount of natural, human and capital resources made available; changes in
the social structure of the society; mass domestic migrant flows, as people relocate to the
economic power centers; the use of productive agricultural land for the development of
tourist facilities – hotels, golf courses and resorts; pressure on the protected areas etc.
“Globalization is the result, on one hand, of the capitalist system’s constant need to grow and
expand and, on the other hand, of the intensive development and ubiquity of the new
technologies. At the same time, tourism is one of the main products being globalized, as well
as one of the main sources driving globalization.”
Globalization, through its patterns of economic, social, cultural and political interactions,
allowed tourism to expand globally, while also functioning as a basis for the globalization of
other related industries, such as transportation, communications and banking. All these made
the experts conclude that the tourism industry has a dual role – a global phenomenon and a
catalyst for globalization.
The multinational tourism companies, their worldwide expansion and the way in which they
create the rules under which the industry functions are solid proof that the globalization
covers the tourism industry as well – an industry traditionally consisting of small and
medium-sized companies of various profiles, but also with giant corporations that now guide
the development of this economic sector. While different and atypical compared to other
industries due to its particularities, tourism’s globalization trends are no different than those
of other industries. Its globalization strategies and tactics are the same: mergers and
acquisitions, horizontal or vertical integration, rapid global expansion combined with strict
controls over the products, prices and suppliers.
The companies’ main goal is to take advantage of the opportunities offered by the attractive
travel destinations and not to contribute to the economic development of the community nor
to help raise the standard of living for its members. These multinational companies see the
world as their playground, creating business strategies for a global presence. The main barrier
to these companies’ global expansion is the difficulty of implementing a set of standardized,
centrally coordinated from a different region of the world tourist offerings across various
economies, cultures and legal environments that vary from one country to another.

Comparing globalization and tourism side by side we can notice a series of similarities in
terms of negative impact on the social-economic and cultural life of the local communities.
Both globalization and tourism:
 Deepen the inequality gap between the rich and the poor;
 Amplify the social inequalities within a society;
 Make use of the “poor”’s resources for the benefit of the “rich”;
 Impact the life of the community through the introduction of new social values,
customs and traditions;
 Cause harm to the environment and increase the pollution levels.
Pessimist hyperglobalists see the growth of the global tourist market and the birth of the
global society as a concern, considering that we can expect to witness a large growth in
tourism in the coming years, leading to more than 1 billion international arrivals annually.
This is an impressive number and a reflection of what Reid called the “golden hordes” of
tourists spreading across the globe, a phenomenon that needs to be treated seriously, since its
negative consequences can impact the environment, local cultures and societies.
The claim that tourism amplifies the social and economic inequalities is also supported by the
statistics available and by the forecasts for the future: despite the overall growth in global
tourism, travel will remain a privilege accessible by few, as UNTWO predicts that only 7%
of the world’s population will travel outside their national borders by 2020.
Globalization’s economic characteristics highlight a few key elements, such as the formation
of strategic alliances and the rise of global players (airlines, hotels and our operators), the
expansion of global travel markets, the horizontal and vertical integration of the industry and
the strong competition among the travel destinations worldwide. As a result, the industry
giants are being wooed for their abilities to develop travel destinations, but, at the same time,
they misuse the local resources, restrict local initiatives and limit the economic benefits for
the local communities. The hyperglobalist model also analyzes globalization in tourism
through the lens of the standardization process of the mass-produced travel products and
services, a process that converts tourists into global consumers. Mass tourism is the recipe for
growth, but it is not the perfect solution for a sustainable development, considering its size,
action patterns and impact upon the other areas of human activity.
From an environmental standpoint, tourism bears the stigma of having a harmful influence,
increasing pollution levels and affecting the environment and its ecosystems. This whole
issue of environment degradation caused by tourism’s expansion remains a topic only dealt
with during political talks and by the environmental organizations. The hard truth is that, as
long as mass tourism is being intensively promoted and expanded, no travel destination is
safe from the environmental side-effects generated by the large numbers of visitors.
From a social standpoint, the hyperglobalists see tourists as global consumers, with
homogenous consumption patterns, who are part of a single global community. At the same
time, traditionalists see tourists as the representatives of their own individual nations, bearers
of their own cultures and with personalities shaped by their origins. The same traditionalists
see consumerism as a Western-originated phenomenon and, as a direct consequence, they
believe that the global expansion of tourism is simply the extension of the Western world,
rather than the birth of a new global society.

For transformationalists though, tourists are global citizens with rights and responsibilities
that originate from their status as tourists. While we believe that this vision has a number of
idealist features, it still needs to be considered for further analysis, since it’ll definitely
become a feature of the tourists in tomorrow’s global world.
Tourism is becoming a must-have of today’s world and a general lifestyle, being a modern,
global phenomenon that is a direct factor of the economic and social globalization, due to its
complex nature and impact upon all the other human activities. While arguments exist for
defining tourism as a global phenomenon, its complexity is proven by many of its specifics,
specifics that seem to highlight mostly its regional and national character, rather than its
global one; the tendency of tourist flows to be mainly concentrated at regional and national
levels emphasizes the concept of “globalization”, or regionalization in tourism, as 80% of the
trips take place with the national borders or within the same geographical region. At the same
time, the tourism industry’s structure is different from those of other industries: small and
medium-sized companies account for a majority of industry, while the limited presence of the
multinational companies makes it a very fragmented industry, unlike many other highly
consolidated economic sectors.

Activity
1. Explain what you have understood in this statement, “Globalization is the result, on one
hand, of the capitalist system’s constant need to grow and expand and, on the other hand, of
the intensive development and ubiquity of the new technologies. At the same time, tourism is
one of the main products being globalized, as well as one of the main sources driving
globalization.”.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. How did Travel and Tourism contribute in the growth of the Hospitality Industry?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
GOOD JOB!

Macro-Environment Trends in Hospitality & Tourism
Lesson 11
Objectives

1. Understand what are the different Macro-Environment Trends in Hospitality and
Tourism
Top Trends List
Let’s pretend you’re a travel agent, tasked with identifying some of the biggest trends
impacting your industry – the hospitality and tourism industry. In order to anticipate how
these trends might impact your job, your boss has asked you to compile a list of relevant
political, economic, environmental, and social trends that could influence the strategic
direction that organizations in the hospitality and tourism sector might take. It’s sort of like
taking a crystal ball and looking into the future, except with some insights from industry
experts and your own experience in the industry to build upon.
You’ve managed to put together a list of topics you think are pretty important and have
passed it along to your boss. She agreed with your assessment and, pleased with your effort,
distributes your analysis throughout the office. The following is the research you came up
with that you hope helps your fellow travel professionals.
Hospitality and Tourism Impact
You identified several trends impacting the overall hospitality and tourism industry, defined
as macro-environment trends – that is, external factors over which the industry has no control
that might affect its performance and strategies. That could include a wide variety of things
such as environmental factors, social factors, legal and political conditions, or even
technological changes.
Some of the top trends that caused your co-workers to sit up and take notice include:
Climate Change
Unpredictable or unstable weather patterns can be a hamper on hotels and tourism in both
warm and cool climates that depend on certain conditions for their guests and livelihood. As a
solution to this challenge, hotels could consider making changes to infrastructure to withstand
negative weather events. Providers in mountainous areas could implement a four-season
travel strategy toward its guests.

Green Policies
All businesses are under increased pressure to incorporate environmental and sustainable
practices and programs. These might include energy and water conservation measures.
Luckily, hotels and restaurants can accommodate by considering eco-friendly options they
can share with their guests such as energy-efficient light bulbs and appliances and reducing
waste in a restaurant by donating to local food pantries. Hospitality providers can use these
practices to their advantage in marketing and attracting guests.
Disruptive Forces
The emergence of shared travel providers such as Airbnb, where travelers book cheap
accommodations owned by other individuals, and online mega-travel search engines can have
negative consequences on the overall tourism industry. To combat this issue, create travel
options that appeal to this generation of travelers, such as Marriott is doing with the
introduction of their Moxy brand of hotels to appeal to millennial Airbnb users.
Income Inequality
The gaps between the very wealthy, the average middle class family, and the very poor are
becoming more prominent. In Asia, this gap is expected to be the worst. However, offer
reasonably-priced and affordable options for tourists, whether that’s a moderately-priced
hotel or a special discounted menu for more frugal travelers. Contrast these with the lavish
accommodations for wealthy guests.
Economic Uncertainty
Job loss, inflation, and less discretionary income can cause would-be travelers to avoid
vacations or, at the very least, stick close to home to avoid the added expenses of dining out
and staying in hotels. To offset economic uncertainty, hotels could offer bundled deals with
restaurants or local attractions, weekend getaways, or reduced rates. Restaurants might
consider menu specials.

Activity
Apart from the abovementioned top trends list, think of other Macro-Environment Trends in
Hospitality & Tourism based on the everyday news that you watch or listen to, and explain
each trend. Write your answers on the space below.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
You’re on the right track! Keep going!

Food Service Industry: Trends & Analysis
Lesson 12
Objectives

1. Learn the different trends in the Food Service Industry
Ostrich burger coming up! The food service industry is changing, and some restaurants are
embracing the trends by offering new proteins, such as ostrich. Check out some of the latest
trends in this lesson.
New Foods
In this lesson, you'll learn about the newest food service trends in 2016. The food service
industry includes restaurants, cafeterias, and any other place that serves food to people. And
yes, it includes school and work cafeterias.
One trend that food service has seen in recent years is that of new proteins being introduced.
Restaurants aren't simply offering chicken and beef as protein sources, but also offering new
protein sources, such as quinoa. There are even restaurants that offer elk, buffalo, and ostrich
meats as protein sources.
This trend shows that customers are getting more adventurous in their tastes. It also shows the
diversity that exists in cities that offer these new sources of protein. While chicken and beef
is the common protein source in America, quinoa and elk are common protein sources in
other parts of the world.
New Times
Another trend that is also happening is that of customers eating at all times of the day. Not
only are customers eating strictly during breakfast, lunch, and/or dinner times, they're also
eating in between these meals. Not only are people strictly eating at restaurants, they're also
going to grocery stores that serve ready-to-eat meals.
People's eating times are changing because their lifestyles are also changing. Instead of
working the traditional 9 to 5 office job, many people are entrepreneurs working on their own
businesses at all hours of the day - and eating at all hours of the day.
You can see this trend around you when you see a drive-through that is open 24 hours a day,
7 days a week. You'll usually see this in cities that support innovation and small business,
such as Los Angeles and the San Francisco Bay area. For example, many tech startup
businesses begin in the San Francisco Bay area. You have Task Rabbit that began in San

Francisco and provides a large range of services to busy people. Task Rabbit is also an
example of how people are eating at any hour of the day. People can ask Task Rabbit to pick
up restaurant food for them whenever they get hungry. Instead of having to physically go to a
restaurant to get food, people can now hire a service like Task Rabbit to go pick up the food
and deliver it.
Restaurant Trends

Food Service Trends

Food Delivery Trends
With the increased demand of delivery and easily accessible apps like Uber Eats and
Grubhub, delivery trends are beginning to take over ordinary delivery services. See what's to
come in the world of delivery for 2020.

Restaurant Technology Trends
It's no secret that the smartphone has changed the way we live, as well as the way we cook,
order, and even pay for food. It seems like there's an app for everything now, and restaurant
technology is following suit.

Activity
Based on the Food Service Industry Trends stated above, write inside each circle on what you
think is the most helpful / beneficial to society and explain why.
RESTAURANT TRENDS
FOOD SERVICE
TRENDS
FOOD DELIVERY
TRENDS
GOOD JOB!

Quick Service Restaurant Industry: Trends & Analysis
Lesson 13
Objectives

1. Analyze the difference between Food Service and Quick Service Restaurant Industries
Quick-service restaurants face many challenges, but they also have many opportunities, with
new trends in abundance. In this lesson, you'll learn more about the quick-service trends and
some of the concerns in the industry.
What Are Quick Service Restaurants?
You're familiar with them. You pass them on your way to work, as you run Saturday errands
and as you travel on vacation. You've probably dined at one this week, driven through one of
their parking lots, and maybe even requested a quick snack through a small window cut out in
the rear of their building. Called a quick service restaurant by some, you may more
comfortably call it a fast-food restaurant - any number of hamburger, taco or roast beef drive-
thru joints where you can grab a cheap and quick meal.
The quick service restaurant industry is projected to rake in more than $200 billion in the
United States in 2016, with estimates over the next four years growing that number to more
than $220 billion. That's thanks in part to the more than 200,000 establishments the country
boasts. The deli sandwich shop, Subway, has the most locations nationwide, followed by
McDonald's, Starbucks, and Pizza Hut.
In recent years, thanks in part to increased pressure on the industry from fast-casual
restaurants and rising consumer expectations, the quick service industry has had to make
quick adjustments to issues like those we'll cover in the next section.
Analyzing Quick Service Threats
Quick service or fast-food restaurants have come under enhanced scrutiny and face stiffer
competition lately than in previous years. Consumers are demanding more healthful options,
and fast-casual restaurants like Five Guys, Panera Bread, and Qdoba are courting customers
who are willing to pay a little more for a better dining experience.
Here are a few of the more serious issues quick service restaurants are encountering:
1. The rise of fast-casual dining: Fast-casual dining is the world's fastest growing segment of
food service, as consumers turn to restaurants that offer more opportunities for customized
meals with fresher food options.
2. Unacceptable, unhealthful menus: Whether the result of the media putting more pressure
on restaurants to offer more healthful options or the rising consumer demand for better

choices, quick service restaurants are struggling with the perception of unhealthful menu
offerings.
3. Poor labor conditions: Fast-food workers across the country have created some bad press
for fast-food restaurants for their less-than-ideal working conditions, long hours, and low
wages. Legislation in some states is working to raise the minimum wage to help address at
least one of those concerns.
Threats to quick service restaurants also present opportunities and trends in the industry.
Many of the restaurants in this segment are working to get a leg up on the competition and
appeal more to the needs of changing consumer expectations. Let's examine a few of the
trends sure to impact the industry moving forward.
Quick Service Trends
From creating more healthful food options to embracing technology, quick service restaurants
have many opportunities to stay in the game.
Here are 5 Technology Trends Impacting the Quick-Service Restaurant Industry
As online ordering and mobile delivery apps continue to gain popularity and diners
increasingly expect technology-forward experiences, QSRs are challenged with finding
new ways to quickly fulfill orders and keep customers – and their taste buds – satisfied.

“May I take your order?” is becoming “How may I take your order?” – The reason customers
choose QSRs is in the name, they are quick. Offering multiple ways to order – from kiosks to
loyalty apps to tablets – is essential to minimizing customers’ wait times. When lines do back
up, innovative brands are implementing “line busting” tactics, such as having staff walk car-
to-car in long drive-thru lines, ringing up customer orders on tablets or mobile registers so
orders are ready and waiting by the time a guest reaches the pick-up window.
Mobile apps are cooking up physical and digital upgrades – Traditionally, restaurants have
only had to keep pace with orders coming from two locations: the walk-up counter and the
drive-thru. However, by 2021, nearly 50 million people will be using food delivery apps.
From a restaurant’s own app or website, to third party food delivery services, QSRs are now
having to account for orders within and beyond their four walls. From an IT perspective,
having a guest WiFi network is now crucial in supporting in store mobile ordering and
mobile payments. To avoid long lines and confusions, restaurants must also think about
restructuring their physical layout to accommodate the growing number of mobile orders.
Increased focus on privacy and security policies – When the security of one restaurant
location is compromised, it can put an entire brand at risk. QSRs are utilizing firewalls, LAN
and WAN networks to help control security from a corporate level and maintain their brand.
Having the comfort that comes from security measures also allows restaurants to focus more
on ways to innovate.
Digital signage keeps restaurant menus from going stale – Whether it’s by season, or time
of day, menu options are constantly expanding and changing. With initiatives like limited
time menu offerings (LTOs) becoming an increasingly popular strategy within QSRs, more
and more restaurants are opting for digital signage as a way to stay on top of these type of
menu turnovers and updates. Digital menu boards give QSRs the ability to update
information to all locations at once, making sure both staff and customers stay up to date on
the latest offers and promotions.
Technology adds extra spice in recruiting and retaining employees – A restaurant’s staff
plays a huge role in customer experience. Often times, a happy employee equates to happy
guests. Being able to offer employees advanced technology gives a restaurant a competitive
edge and helps recruit top talent at a local and corporate level. LTOs also add another layer of
complexity to staff training. Having reliable technology that allows both internal and external
information to be shared – and rolled out – on a national level is imperative to making sure
staff can be quickly and effectively trained on a brand’s latest offerings or special
promotions.
“From online to eliminating the line, mobile technologies are propelling the explosive growth
of the QSR category. In fact, research has shown that mobile apps represent roughly 60
percent of all digital restaurant orders,” said Ray Hatch, Vice President Enterprise Solutions
Vertical Markets at Comcast Business. “As QSRs continually look for new ways to embrace
– and keep pace – with this growth, technology is becoming the secret that helps them to
focus on what matters the most: bringing delicious food to hungry guests.”

Activity
1. What is the difference between Food Service Industry and Quick Service Restaurant
Industry?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
2. How do Quick Service Restaurants help in building a better environment in the Hospitality
Industry? What do they contribute?
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
Great work!
Limited Service Restaurant Industry: Trends & Analysis
Lesson 14
Objectives

1. Learn how a Limited Service Restaurant stands in the Hospitality Industry
The limited service restaurant industry is poised for future growth due to a renewed focus on
consumers and high-quality ingredients. In this lesson, you'll learn more about this industry
and future trends.
Limited Service Restaurant Industry

You probably didn't think to call it a limited service restaurant, but when was the last time
you heard ''I'll take your order when you're ready,'' over the loudspeaker of a drive-thru
window? Surprise! You were at one type of limited service restaurant when you placed that
order. Let's learn a little more about the limited service industry and where it's headed.
What Is Limited Service?

The limited service restaurant industry is probably familiar to you and you don't even realize
it; more than half of the restaurant market share in the United States is made up of limited
service establishments. Limited service restaurants are marked by a couple of characteristics:
 Patrons pay for food selections upfront.

 Facilities typically boast a drive-thru.
 Food varies from breakfast offerings to late-night meals.
 Items are inexpensive compared to casual or family dining.

Breaking it down even further, limited service restaurants can be divided into sub-categories
including quick service (such as fast food chains like McDonald's), cafés, and fast casual
establishments like Chipotle Mexican Grill or Panera Bread. Quick service restaurants are
typically the cheaper of the two sub-categories. Fast casual restaurants serve food quickly as
well, but the price tag is generally slightly higher. The limited service restaurant industry also
includes cafés (Dunkin' Donuts or Starbucks) and pizza restaurants (Papa John's and Pizza
Hut).
Limited Service Analysis
Years ago, full service restaurants like Applebee's were dominating the restaurant scene, but
the tide seems to be shifting. Today, more than 50 percent of the commercial food service
industry is limited service restaurants. That growth is attributed to the surge in popularity of
fast casual restaurants, which continue to gain market share, and fast food restaurants
reinventing themselves in both menu offerings and appearance to be able to compete with sit-
down establishments.
There are many examples of restaurants changing their image, including McDonald's. Many
renovations at McDonald's feature more casual, living-room-type furniture. The menu
features high-end coffee beverages and more sophisticated salads and organic options.
Food and beverage sales at limited service restaurants were expected to top $223 billion in
the United States in 2016. The growth experienced by these restaurants outperformed full
service restaurants by almost two percent, with the most significant driver of growth coming
from the fast casual segment. Part of this growth is being driven by consumer demands for
fresher and more high-quality products. These foods are typically more inexpensive at limited
service restaurants than their sit-down dining counterparts. After a few years of declining
popularity and little growth, the industry is finally seeing somewhat of an uptick in consumer
spending.

Activity
Differentiate Quick Service Restaurant and Limited Service Restaurant and write you
answers inside the corresponding boxes.
QUICK SERVICE RESTAURANT LIMITED SERVICE RESTAURANT
Write as many Limited Service Restaurants inside the box below, which have already made
its name in the food service industry.
LIMITED SERVICE RESTAURANTS IN THE FOOD SERVICE INDUSTRY

You did a great work!
Global Trends in Tourism

Lesson 15
Objectives

1. Identify the different global trends in the Tourism sector
Since the 1950s, international tourist arrivals have increased tremendously, from 25 million
globally, to 527 million in 1995, and 1.2 billion in 2016. The number is expected to reach 1.8
billion by 2030, and to double by 2050. This dramatic growth in tourism is why the
development of sustainable tourism has become part of the global agenda, related to the
Sustainable Development Goals, the so-called SDGs. Let us take a closer look at the travel
flows and tourist distribution. A tourist is defined as a person entering another country for at
least 24 hours. About 80 percent of all international travel is leisure, tourism, and 20 percent
is business tourism. Tourism is unevenly distributed around the world, and 97 percent of the
world's population will never fly. This means that just a very small share of humanity is
actually part of the statistics, and often, it's the same people travelling again and again.

According to the World Tourist Organization, 50 percent of all international arrivals are
within Europe. Africa, in comparison, only receive five percent of all international tourist
arrivals. Another important region, Southeast Asia, with 25 percent, the Americas with 16
percent of international arrivals. The most important tourism flows are between industrialized
countries, including North America, Europe, Japan, and Australia. In Europe, most tourism is
directed towards the Mediterranean, and there are major flows from North America to the
Caribbean. The growing number of people traveling by air each year contributes to the world
economy, but also poses the growing impact and challenge to the environment, including
those related to greenhouse gas emissions.
According to the United Nations, Intergovernmental Panel on Climate Change, IPCC,

aviation produces around two percent of the world's manmade emissions of carbon dioxide, a
number equivalent to the total emissions of Germany, which has a population of
approximately 18 million. In the European Union alone, greenhouse gas emissions from
aviation increased by 87 percent between 1990 and 2006. While aviation is often associated
with growing greenhouse gas emissions, especially as passenger numbers are rising and
people travel longer distances, less focus has been on its massive generation of waste.
Looking at the figures from the International Air Transport Association, it is estimated for
2016 that airline passengers during transport generate 5.2 million tons of waste, a figure
expected to double by 2030. Where's all the waste going? Most often to landfills or
incineration. As tourist increases in low income countries, more and more of this waste is
also ending up in uncontrolled dumpsites, as the capacity to manage waste there is
insufficient. Examples of such destinations are small island states like the Seychelles,
Mauritius, Aruba, the Maldives, and Zanzibar. In one instance, tourist arrivals have increased
five fold in just 20 years. The popular tourist destinations will benefit from tourism's positive
outcomes, but also risk being hit by the sector's negative side effects, including damage to the
environmental health. Therefore, there is a need for strong partnerships and decisive action
from all tourist stakeholders in accordance with the 2030 Sustainable Development Agenda.
Activity
If you were to travel the world, where would you go and why? What are the factors that
contribute to why you would want to go to that place? Explain you answer.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Good job! Keep it up!
Appendices
Rubric For Evaluating Written Report Or Presentation

(from PHEH-651 Advanced Environmental Health Sciences v2008.03.14)
Topic Unacceptable Marginal Acceptable Exceptional
(Weight) (0) (1) (2) (3)
Organization Sequence of Work is hard to Information is Information is
& information is follow as there is very presented in a logical presented in a logical,
Style difficult to follow. No little continuity. manner, which is interesting way,
apparent structure or easily followed. which is easy to
(2) continuity. Purpose of work is follow.
stated, but does not Purpose of work is
Purpose of work is assist in following clearly stated assists Purpose is clearly
not clearly stated. work. the structure of work. stated and explains
the structure of work.
Content No grasp of Uncomfortable with At ease with content Demonstration of full
& information. Clearly content. and able to elaborate knowledge of the
Knowledge no knowledge of and explain to some subject with
subject matter. degree. explanations and
(3) elaboration.
No questions are Only basic concepts
answered. No are demonstrated and
interpretation made. interpreted.
Format Work is illegible, Mostly consistent Format is generally Format is consistent
& format changes format. consistent including throughout including
Aesthetics throughout, e.g. font heading styles and heading styles and
type, size etc. captions. captions.
(1)
Figures and tables are Figures and tables are Figures and tables are Figures and tables are
sloppy and fail to legible, but not neatly done and presented logically
provide intended convincing. provide intended and reinforce the text.
information. information.
Spelling Numerous spelling Several spelling and Minor misspellings Negligible
& and grammatical grammatical errors. and/or grammatical misspellings and/or
Grammar errors. errors. grammatical errors.
(1)
References No referencing Inadequate list of Minor inadequacies Reference section
system used. references or in references. complete and
(2) references in text. comprehensive.
Inconsistent or Consistent Consistent and logical

illogical referencing referencing system. referencing system.
system.
Unacceptable Marginal Acceptable Exceptional
OVERALL
(F) (C) (B) (A)
POINTS
0–6 7–13 14–20 21–27
REQUIRED
References
Aurecon Group Brand Pty. Ltd. August 2020. Technology in the hospitality industry –
exploring the very latest trends. Retrieved from
https://www.aurecongroup.com/thinking/insights/aurecons-successful-hotels/technology-in-
the-hospitality-industry-exploring-the-very-latest-trends
Christopher Lovelock and Jochen Wirtz (2011), Services Marketing: People, Technology,
Strategy, 7th ed., Upper Saddle River, New Jersey, Prentice Hall
Coursera. 2020. Global trends in tourism. Retrieved from

https://www.coursera.org/lecture/sustainable-tourism/global-trends-in-tourism-ZBoXY
Furnham, A.and Milner, R., "The Impact of Mood on Customer Behavior: Staff Mood and
Environmental Factors," Journal of Retail and Consumer Services, Vo. 20, 2013, p. 634
Insights. July 22, 2014. 5 Best Practices in Hospitality Customer Service. Retrieved from
https://insights.ehotelier.com/insights/2014/07/22/5-best-practices-in-hospitality-customer-
service/
Investopedia. July 7, 2020. The 4 Ps. Retrieved from

https://www.investopedia.com/terms/f/four-ps.asp
Restaurant Technology News. 3.11.2020. 5 Technology Trends Impacting the Quick-Service

Restaurant Industry. Retrieved from https://restauranttechnologynews.com/2020/03/5-
technology-trends-impacting-the-quick-service-restaurant-industry/
Study.com. August 2020. Business 102: Principles of Marketing. Retrieved from

https://study.com/academy/course/principles-of-marketing-course.html
Travel with Sanjay Nepal. 2017. Nature of the Hospitality Industry. Retrieved from
http://travelwithsanjay.blogspot.com/2019/08/characteristics-of-hospitality-industry.html
Trilyo. October 30, 2018. The 7 Ps Of Service Marketing In Hotel Industry. Retrieved from
https://www.trilyo.com/blog/the-7-ps-of-service-marketing-in-hotel-industry/
Wikipedia. August 2020. Services marketing. Retrieved from

https://en.wikipedia.org/wiki/Services_marketing#Services:_definitions
Westaurant Store Blog. 2020. Top Foodservice Trends of 2020. Retrieved from
https://www.webstaurantstore.com/blog/2214/top-foodservice-trends.html

Handout On THC 5 With Footer

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Handout On THC 5 With Footer

Uploaded by

Copyright:

Available Formats

]

THC 5 – MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

HANDOUT ON MACRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Irene Grace D. De Jesus

COLLEGE OF HOME ECONOMICS

For WMSU Instructional Purposes Only Page 1 of 82

Lesson 1: WMSU Vision, Mission, Goals & Objectives ………………………………… 3 –

For WMSU Instructional Purposes Only Page 2 of 82

WMSU Vision, Mission, Goals & Objectives

At the end of this lesson, you can:

Western Mindanao State University

For WMSU Instructional Purposes Only Page 3 of 82

GRADE COMPONENT AND CORRESPONDING WEIGHT:

For WMSU Instructional Purposes Only Page 4 of 82

Percentage Grade = raw score / total number of items x 100

TOTAL SCORE...............................40 correct out of 50 items

Passing Grade = 60%

For WMSU Instructional Purposes Only Page 5 of 82

Lacks requirements and/or final exam INC

Authorized Withdrawal (Dropped with permit) AW

Unauthorized Withdrawal (Dropped from class for non-

For WMSU Instructional Purposes Only Page 6 of 82

Qualities of a Student Checklist

A positive attitude towards study

At the end of this lesson, you can:

Marketing to children has more than doubled since 1992

Companies have increased their marketing budgets dramatically. For example, it is

Official Definition of Marketing

For WMSU Instructional Purposes Only Page 8 of 82

The Four P’s

For WMSU Instructional Purposes Only Page 9 of 82

Product refers to a good or service that a company offers to customers. Ideally, a

Marketers also need to determine when and if discounting is appropriate. A discount

For WMSU Instructional Purposes Only Page 10 of 82

For WMSU Instructional Purposes Only Page 11 of 82

Business Name Product Price Place Promotion

The importance of Tourism and Hospitality Marketing and its strategies

At the end of this lesson, you can:

The hospitality industry encompasses a variety of businesses, including hotels and

Because the hospitality industry focuses heavily on creating experiences and

For WMSU Instructional Purposes Only Page 13 of 82

For WMSU Instructional Purposes Only Page 14 of 82

Mobile is quickly becoming more important than desktop strategies, and—

Creativity used to be thought of as not so much a marketing concept as fodder for

For WMSU Instructional Purposes Only Page 15 of 82

Answer the following:

For WMSU Instructional Purposes Only Page 16 of 82

2. Explain why marketing portrays an important role in the hospitality industry.

You’re getting better!

Sectors and Services of the Hospitality Industry

The hospitality industry is an industry that aims to provide excellent customer

Looking at the Hospitality Industry

Accommodations & Services

Food & Beverage

For WMSU Instructional Purposes Only Page 18 of 82

Tourism & Travel

For WMSU Instructional Purposes Only Page 19 of 82

Accommodations & Services Food & Beverage Tourism & Travel

Hospitality Industry Products and their Characteristics

At the end of this lesson, you can:

For WMSU Instructional Purposes Only Page 20 of 82

What is the Hospitality Industry?

Nature of the Hospitality Industry.