JOHN B.

LACSON FOUNDATION MARITIME UNIVERSITY-

MOLO, INC.
COLLEGE OF BUSINESS

LEARNING MODULE
Micro Perspective of Tourism and Hospitality
(MIPTH)

Name: ______________________________________
Year & Section: ______________________________________
Contact Number: ______________________________________
Email: ______________________________________
Instructor: ______________________________________

Prepared by:

WEEZIE KAY O. MANUCAN, MHM

MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY
HOW TO USE THIS MODULE

Welcome!

Micro Perspective of Tourism and Hospitality (MIPTH) is one of the major courses of
the Bachelor of Science in Tourism Management Program. This course will cover the
workings, operations, and the integrative activities of major stockholders in the Tourism
and Hospitality Industry. The student will also gain knowledge of managing and
marketing a service-oriented business organization. Apart from the scope and structure
of travel organizations, it provides an in-depth study of the nature and distinctive
characteristics of each sector of the entire tourism industry, focusing on the
management, organization, and planning of specific business strategies for the various
entities in the local setting. This will also involve the analysis of the possible impacts of
external factors and trends on the different tourism industry sectors and specific types of
business. It will also look into client profiling such as travel motivations and influences
as it relates to aligning strategic and tactical solutions to the business. The course also
identifies the employment opportunities available in such sector and the corresponding
qualifications for the job.

Furthermore, Micro Perspective of Tourism and Hospitality (MIPTH) will let the
learners understand the various components present in the tourism and hospitality
business and its multifaceted nature.

This module is a complete learning materials that will give every student an in-depth
insight of all the business and activities connected to tourism and hospitality.

Learner’s output and online quizzes scores will be serving as the proof of grading. The
learners must be diligent in reading their learning module and be well - prepared for
online quizzes, virtual practical examination and unit written test.

Should you need further assistance, do not hesitate to communicate your concerns to the
class instructor.

2
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

COURSE CODE & TITLE: MIPTH

Micro Perspective in Tourism and Hospitality

Course Intended Learning Outcomes

At the end of the course, the students shall be able to:

1. appreciate the nature of the tourism industry and tourism product;

2. identify the various sectors that comprise the tourism industry and the role played
by each sector in the production, distribution and delivery of tourism goods and
services;
3. distinguish the various classifications of each sector and corresponding standards;
4. understand the typical organizational structure of main tourism business entities
and the functions of the relevant divisions within the structure; and
5. understand the impact of micro-environmental trends on the operations of tourism
businesses.
6. have an understanding of career options in the tourism industry

3
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Introduction

Tourism is a social, cultural and economic phenomenon which entails the

movement of people to countries or places outside their usual environment for personal
or business/professional purposes. These people are called visitors (which may be either
tourists or excursionists; residents or non-residents) and tourism has to do with their
activities, some of which imply tourism expenditure (United Nations World Tourism
Organization, 2008).

The objective of this learning module is to give every learner a better view and
micro perspective of the tourism and hospitality related business and activities. The
topics are outlined in an organized manner to provide a detailed understanding of the
subject matter. The module explains the scope, structure and characteristics of tourism
and hospitality industry. It will offer a better range of approach to concepts related to
the factors affecting the tourism and hospitality industry.

This learning module is designed to extend a guide to every academic learner who
dreams to be a part of the tourism and hospitality industry.

Travel makes one modest; you see a tiny place you occupy in the world.
-Gustave Flaubert

- Euripides

Blessed day Turistas!!! Welcome to our virtual

class.

I will be your MIPTH Course Instructor and will

guide you

Let’s explore the Tourism and Hospitality

Industry and makes amazing learning memories.

4
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

COURSE OUTLINE FOR PRELIM TERM

Unit 4 CHARACTERISTICS OF TOURISM & HOSPITALITY

SECTOR

Topic 1 Intangibility
Topic 2 The Economic Characteristics of the Tourism Industry
Topic 3 Five Characteristics of Tourism
Topic 4 Special Characteristics of Travel and Tourism
Topic 5 Characteristics of Travel and Tourism Services
Topic 6 To Become a Good Hotelier
Topic 7 5 Main Characteristics of Tourism by Burkhart and Medik
Topic 8 7 Unique Characteristics of Tourism

Unit 5 BUSINESS IN TOURISM AND HOSPITALITY

Topic 1 Tourism Business
Topic 2 Hospitality Business
Topic 3 Restaurant and Bar
Topic 4 Travel and Tourism

Unit 6 SCOPE AND STRUCTURE OF TOURISM & HOSPITALITY

ORGANIZATION
Topic 1 Organizational Structure Types
Topic 2 Ministry of Tourism Organizational Chart-Bahamas
Topic 3 Tourism Bureau Organization Structure
Topic 4 Travel Agency Organizational Chart
Topic 5 Organizational Design and Organizational Behavior
Topic 6 Formal Communication Channels
Topic 7 Typical Hotel Organization Chart
Topic 8 The Size and Scope of the Tourism Industry
Topic 9 Structure of Travel Organization
Topic 10 Hierarchy in Travel Company

5
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Unit 6 SCOPE & STRUCTURE OF TOURISM &

HOSPITALITY ORGANIZATION

At the end of the unit, students

will be able to:

1. Define organizational
communication;
2. Differentiate internal from
external communication;
3. Familiarize the organizational
structure of management;
4. Learn the scope of tourism
and hospitality; and
5. Understand the
organizational structure of
hospitality.

6
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

I. Organizational Structure Types

Following are the types of organizational structures that can be observed in the modern business
organizations.

A. Bureaucratic Structure
Bureaucratic structures maintain strict hierarchies when it comes to people management.
There are three types of bureaucratic structures.

1. Pre-bureaucratic Structures
- This type of organization lacks the standards. Usually this type of structure can be observed
in small scale, start-up companies. Usually the structure is centralized and there is only one
key decision maker.

- The communication is done in one-on-one conversations. This type of structures is quite

helpful for small organizations due to the fact that the founder has the full control over all the
decision and operations.

2. Bureaucratic Structures
- These structures have certain degree of standardization. When the organizations grow
complex and large, bureaucratic structures are required for management. These structures are
quite suitable for big organizations.

3. Post-bureaucratic Structures
- The organizations that follow post-bureaucratic structures still inherit the strict hierarchies,
but open to more modern ideas and methodologies. They follow techniques such as total
quality management(TQM),culture management,etc.

B. Functional Structure
- The organization is divided into segment based on the functions when managing. This allows
the organization to enhance the efficiencies of theses functional groups. An example is a
software company.

- Software engineers will only staff the entire software development department. This way,
management of this functional group becomes easy and effective.

- Functional structures appear to be successful in large organization that produces high volumes
of products at low costs. The low cost can be achieved by such companies due to the
efficiencies within functional groups.

- In addition to such advantages, there can be disadvantages from an organizational

perspective if the communication between the functional groups is not effective. In this case,
organization may find it difficult to achieve some organizational objectives at the end.

C. Divisional Structure
- These types of organizations divide the functional areas of the organization to divisions. Each
division is equipped with its own resources in order to function independently. There can be
many bases to define divisions.

7
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

- Divisions can be defined based on the geographical basis, products/services basis, or any
other measurement.

- As an example,take a company such as General Electrics. It can have microwave division,

turbine division, etc., and these divisions have their own marketing teams, finance teams, etc.
In that sense, each division can be considered as a micro-company with the main
organization.

D. Matrix Structure

- When it comes to matrix structure, the organization places the employees based on the
function and the product.

- The matrix structure gives the best of the both worlds of functional and divisional structures.

- In this type of an organization, the company uses teams to complete task. The teams are
formed based on the functions they belong to (ex: software engineers) and product they are
involved in(ex: Project A).

- This way, there are many teams in this organization such as software engineers of project A,
software engineers of project B, QA engineers of project A, etc.

- The World Tourism Organization (WTO) is the United Nations agency responsible for the
promotion of responsible, sustainable and university accessible tourism. It is the leading
international organization in the field of tourism, which promotes tourism as a driver of
economic growth, inclusive development and environmental sustainability and offers
leadership and support to the sector in advancing knowledge and tourism policies worldwide.
It serves as a global forum for tourism policies issues and a practical source of tourism
knowledge. It encourages the implementation of the Global Code of Ethics for Tourism to
maximize the contribution of tourism to socio-economic development, while minimizing its
possible negatives impacts, and is committed to promoting tourism as an instrument in
achieving the United Nations Sustainable Development Goals(SDGs), geared towards
eliminating poverty and fostering sustainable development and peace worldwide.

- UNTWO generates market knowledge, promotes competitive and sustainable tourism policies
and instruments, fosters tourism education and training, and works to make tourism an
effective tool for development through technical assistance projects in over 100 countries
around the world.

- UNTWO’s membership includes 158 countries, 6 territories and over 500 affiliate members
representing the private sector, educational institutions, tourism associations and local tourism
authorities. Its headquarters are located in Madrid.

II. Organizational Aims

The objectives of the UNWTO are to promote and develop sustainable tourism to
contribute to economic development, international understanding, peace, prosperity and
universal respect for, and observance of, human rights and fundamental freedoms for all,
without distinction as to race, sex, language or religion. In pursuing these aims, UNWTO pays
particular attention to the interests of developing countries in the field of tourism.

8
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

III. Structure
A. General Assembly
- Principal gathering of the World Tourism Organization.
- meet every two years to approve the budget and programme of work and to debate
topics of vital importance to the tourism sector
- every four years it elects a Secretary-General.
- composed of full members and associate members
- World Committee on Tourism Ethics is a subsidiary organ of the General Assembly

B. Executive Council
– UNWTO’s governing board, responsible for ensuring that the Organization carries out
its work and adheres to its budget.
- meets twice a year and is composed of members elected by the General Assembly in
ratio of one for every five full members.

C. Committees
-specialized committees on UNWTO members advise on management and program
content. These include PROGRAM COMMITTEE, THE COMMMITTEE ON BUDGET
AND FINANCE, THE COMMITTEE ON STATISTICS AND THE TOURISM
SATELLITE ACCOUNT, COMMITTEE ON MARKET AND COMPETITIVENESS,
SUSTAINABLE DEVELOPMENT OF TOURISM COMMITTEE, WORLD
COMMITTEE ON TOURISM ETHICS, COMMITTEE ON POVERTY REDUCTION,
and COMMITTEE FOR THE REVIEW of applications for affiliate members.

D. Secretariat
-responsible for implementing UNWTO’s programme of work and serving the needs of
members and affiliate members.

IV. Affiliate Members

A. Organizational Structure

Affiliate Members – form an integral part of UNWTO membership with the objective
of contributing to sustainable global tourism, in which knowledge and innovation are
applied to making tourism more responsible and competitive, in accordance with the
Global Code of Ethics for Tourism and purposes and principles of the United Nations.

1. The Plenary
-The organ in which all affiliate members are represented, and shall be composed of all
the membership, each having voice and vote.

2. The board of the Affiliate Members

-acts as an advisory body to the UNWTO Secretary-General, responsible for alignment
of its members to the goals, mission and general programme of work of UNWTO as
well as the design and implementation of the programme of work of the Affiliate
Members Programme.

V. Structure of the Travel and Tourism Industry

1. Tourist Destination
2. Tourist Attraction
3. Tourist Transportation

9
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

4. Tourist Accommodation
5. Tour Operators & Travel Agents
6. Travel Related Services

VI. Tourism Development

-The travel and tourism industry has changed dramatically as a result of the amount of
integration. Integration has both a positive and negative effect on the industry.
-Vertical integration occurs when an organization buys another at a different level on
buying chain. Vertical Integration involves the acquisition of business operations within
the same production vertical.
-Horizontal Integration, a company takes over another that operates at the same level
of the value chain in an industry.

VII. Structures and Function

• Ministry of Tourism Organizational Chart-Bahamas

• Organizational Structure

Tourism Development Council (TDC)

- governed by a Board of Directors and a Project Assessment Committee comprised of
senior business executives who serve on a voluntarily basis to stimulate ideas and provide
commercial insight towards the further development of the local tourism industry.

Board of Directors
-elected at the company’s Annual General Meeting and is responsible for overseeing
the general direction of the organization with regard to administration and the allocation of
funds to various tourism-related projects

Department of Tourism (Philippines)

Headquarters: The New DOT Building, 351 Sen. Gil J. Puyat Avenue, Bel-Air, Makati

Website: www.tourism .gov.ph

-The Department of Tourism (Filipino: Kagawaran ng Tourism, DOT) is the executive

department of the Philippine government responsible for the regulation of the Philippine
tourism industry and the promotion of the Philippines as a tourist destination.
-Started as a private initiative to promote the Philippines as a major travel destination,
the Philippine Tourist and Travel Association was organized in 1950.
-In 1956, the Board of Travel and Tourist Industry was created by Congress as
stipulated in the Integrated Reorganization Plan in 1972 sanctioned as a law under
Presidential Decree No. 1, as amended, The Department of Trade and Tourism was
established, re organizing the then Department of Commerce and Industry.
-A Philippine Tourism Commission was created under the unified Trade and Tourism
Department to oversee the growth of the tourism industry as a source of economic benefit for
the country.
-In 1973, President Ferdinand Marcos created a new cabinet-level Department of
Tourism (DOT) by splitting the Department of Trade and Tourism into two separate
departments.

10
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY
- Include in the new Department of Tourism, the agency Philippine Tourism Authority
(PTA) and the Philippine Convention Bureau (PCB) were created.
-The Department of Tourism was then renamed Ministry of Tourism as a result of the
shift in the form of government pursuant to the enforcement of the 1973 Constitution.
-In 1986, under Executive Order Nos. 120 and 120-A signed by the President Corazon
Aquino, The Department of Tourism was reorganized and, correspondingly. The Convention
Bureau was renamed the Philippine Convention and Visitors Corporation, and the Intramuros
Administration was attached, previously being under the defunct Ministry of Human
Settlements.
-In 1998, the Department of Tourism assumed a prominent role in culmination of
centennial celebration of the country’s independence from the Spanish Empire in 1898.
- In 2003, the Department of Tourism initiated one of its most successful tourism
promotion projects, Visit Philippines 2003, under Secretary (now Senator) Richard J. Gordon.
-The latest improvements in the tourism industry in the country came about with the
passage of Republic Act No. 9593 or the “Tourism Act of 2009”.

Organizational Structure
The Department is headed by the Secretary of Tourism (Philippines), with the following
four undersecretaries and assistant secretaries.

1. Undersecretary for Administration and Special Concerns

2. Undersecretary for Public Affairs, Communications and Special Projects
3. Undersecretary for Tourism Development Planning
4. Undersecretary for Tourism Regulation Coordination and Resource Generations
5. Assistant Secretary for Administration and Special Concerns
6. Assistant Secretary for Public Affairs, Communications and Special Projects
7. Assistant Secretary for Tourism Development Planning
8. Assistant Secretary for Tourism Regulation Coordination and Resource Generations for
Luzon and Visayas

Bureau and Offices

1. Bureau of Domestic Tourism Promotions and Information

2. Bureau of International Tourism Promotions
3. Office of Tourism Information
4. Office of Tourism Standards
5. Office of Tourism Development Planning
6. Office of Product Development
7. Office of Tourism Coordination

Tourism Projects

1. Visit Islands Philippines 1994

2. Miss Universe 1994
3. Florikultura ’98 – international horticulture exhibition
4. Expo Pilipino 1998 – Philippine Centennial International Exposition
5. 1998 Philippine Centennial Celebrations
6. World Exposition 2002 Manila (cancelled due to financial problems of the government)
7. Visit Philippines 2003
8. WOW (World of Wonders) Philippines
9. “Pilipinas Kay Ganda” slogan and campaign 2010
10. It’s More Fun in the Philippines!

11
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

11. Visit the Philippines Year 2015

12. Visit Philippines Again 2016
13. Miss Universe 2016 (65th Miss Universe)

Tourism Slogans

1. Fiesta Islands Philippines

2. WOW Philippines (2002)
3. Pilipinas Kay Ganda (2010)
4. It’s More Fun in the Philippines
5. Experience the Philippines (2017)

HOSPITALITY

Organizational Design and Organizational Behavior

Organization – is a group of people who work together to achieve a common goal

-every organization must have structure in order to define roles and clarify
relationships between organizational members, so everyone knows what is expected of
his/her
How Structure Influences Organizational Members
• Provide members with a great deal of independence in how they perform their tasks or
constrain them by limiting and controlling their behaviour.
• It is very important not to generalize when linking organizational structure to employee
performance and satisfaction.

How Work Specialization Affects Employee Performance

Work Specialization – how tasks are subdivided into separate jobs within an organization. The
more a job is broken down into small tasks, the more specialization is required by each individual
worker.
• A high degree of work specialization contributes to higher productivity for the organization,
but it can also lead to a lower level of job satisfaction for some individual members of an
organization.

How Centralization Affects Employee Performance

Centralization – another area in which the structure of an organization can influence employee
behaviour and performance.
• The degree of centralization in an organization is determined by structure of the organization
and determines “Where does the decision-making authority lie?’.
• If top management makes all the organizational decisions with no input from lower-level
personnel, the organization is considered to be highly centralized.

Organizational Communication
-sharing of organizational information, remains a vital and critical tool when trying to create and
maintain a competitive advantage.

12
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Two-Types of Communication Business

1. External Communication – includes those communications between organizational
members and external parties.
2. Internal Organizational Communication – facilitates the flow of information among
members of the organization.

Flow of Communication
1. Upward Communication – is all about the feedback, namely subordinates providing
feedback to their managers.
2. Downward Communication – includes the communication that goes from top to bottom, or
from manager to subordinate.
3. Horizontal Communication – occurs between organizational members who are on the
same level in the managerial hierarchy of the organization.
4. Grapevine – includes all the informal conversations that occur between organizational
members that are not officially sanctioned.

Organizational Structure
Lays the foundation for how company operates. It is a set policy and rules that
determines:
1. How an organization controls and delegate tasks and responsibilities.
2. How decisions are made and implemented throughout every part of an organization.
3. How information flows within an organization.

Type of Organization Structure

A. Flat Organizational Structure

-Companies with 20 or fewer employees use this that has very few levels of management
between the chief executive officer (CEO), or president of a company and the lower level
employees.
-Allows for rapid decision making because there are only a few levels of management.

B. Functional Organizational Structure

- Focuses on job functions or functional areas.

C. Product Organizational Structure

-Organized based upon a company’s product lines.

Organizational Structure of a Hotel

The organizational structure in the hotel and lodging industry is made up of:

A. Executive Management Group – serve as the leadership of a property

• General Manager – overall manager of the property for supporting
• Assistant Manager – responsible for supporting the general manager and handling
specific issues assigned and is considered part of the executive management team.

13
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

B. Functional Group-which handle issues that are directly related to guest

• Housekeeping
• Food and Beverage
• Front Desk
• Customer Service

C. Administrative Groups – handle the behind the scenes details that keep the property
running smoothly
• Sales
• Accounting
• Human Resource

Executive Managers
-Executive level of a hotel usually consists of the hotel owner and the general manager.
-The hotel owner set standards and policies of the hotel and delegates the implementation of these
standards and policies to the general manager.

Assistant Managers
-Right hand of the General Manager
-Assigning work schedules, handling patron complaints and ensuring that hotel events are well
organized.
-Take on the role of a general manager if the general manager is unavailable.

Mid-Level Managers
-Tier below assistant managers and usually include positions such as the front desk manager, food
and beverage manager, sales manager, housekeeping manager, financial manager and human
resource manager.

Operational Staff
-Includes all the people that work in the different hotel departments such as food and beverage,
housekeeping, front office, bar and restaurant.

Organizational Structure in the Hotel and Lodging Industry

(Organization of Lodging Structures)

Executive Management
-serves as the leadership of a property and includes the general manager and in the case of larger
hotels, one or more assistant managers.

General Manager
-overall manager of the property and is ultimately responsible for the hotel.
-work with all department managers and their teams to ensure that the property runs smoothly,
problems are handled and the team work together.

Assistant Manager
-responsible for supporting the general manager and handling specific issues assigned and are
considered part of the executive management team.

14
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Defining the Roles

A. Functional Groups
-hotel functional groups handle issues that are directly related to guest.
-this team handle request, problems and service for customers.

Housekeeping
-area that greatly affects the satisfaction of the guest at any hotel.
-oversees all aspects of cleaning and maintaining the appearance of the hotel.

Food and Beverage

-manages any restaurant, cafes, coffee shops, bars, lounges or other types of food-preparing facilities
provided at the property.
-do provide convenience to guests and increasing revenue for the hotel.

Front Desk and Guest Services

-often addresses questions, concerns and problems of the guest.
-staff members at the front desk or concierge desk must be well-educated about the property and
they must know the area around the hotel well.
-the more informed these staff members are, the better able they are to meet the needs of the
guests.

B. Administrative Groups
-handle behind-the-scenes details that keep the property running smoothly.
-these teams organize systems and process that minimize chaos and manage administrative details.

Sales
-usually focuses on booking groups into the hotel, selling conference and event space and handling
functions.

Accounting
-handles the property’s money and any financial issues.

Human Resource
-handles the general personnel issues of the hotel.
-this team accept applications, screen potential employees, facilitate interviews and handle details for
the new hires.

THE SIZE AND SCOPE OF THE TOURISM INDUSTRY

World Travel and Tourism Council (WITC)

-is an industry lobby group comprising the major tourism corporations in the world.

They state that travel and tourism that:

One of the largest and most dynamic industries of today’s global economy, travel and tourism it
accounts for US$ trillion, or 9%, of global gross domestic product (GDP) and it support 260 million
jobs worldwide, either directly or indirectly. That’s almost 1 in 12 of all jobs on the planet (WTTC,
2012).

15
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Debbage and Ioannides (1998) speak of the commodification of tourism that has created this
machinery of production:

(Although changes in consumer demand and the evolution of increasingly more sophisticated
consumer preferences can play substantive roles in shaping the tourism product, it is the actual
“machinery of production” that helps to manipulate and facilitate origin-destination tourists flows
across the world ‘ (Debbage & Ioannides, 1998:287).

Ioannides and Debbage (1998) vent their frustration at the fact that we have not yet satisfactorily got
to grips with analysing the supply side of tourism. They point to a lack of quality analysis of tourism
as a supply-side phenomenon, despite the fact that tourism is bought and sold as a commodity and
the industry is organized along capitalist lines, albeit with some unique characteristics. These include:

1. The tourism industry is highly diverse – from size of establishment (SME’s to corporations);
business type (IT to service provision); sector (air transport to accommodation); organization
(public and private sector); and process. It is therefore more a collection of industries than a
single industry.
2. The fact that tourism is not a single product but a diverse range of products and services that
interact.
3. It comprises tangible and non-tangible elements.
4. It is produced where it is consumed.

To exacerbate this, the tourism industry is both misunderstood and underexplored (Debbage &
Daniels 1998). This is because it is amorphous and complex, shrouded in conceptual fuzziness and
imprecise terminology.

Global Tourism
-is where you decide to travel around the world in one go.

Winter Tourism
-tourists that are generally from hot climatic conditions going to a place of interest.

Accessibility in Tourism
- Is how easy it is for the tourist to access or get to the desired destination.

Safe Tourism
-safe will be when you don’t travel alone, you consider buying travel insurance with full coverage and
try to plan everything in advance.

1. Tourism Challenges – the challenges would be learning new languages and meeting new
people.
2. Tourism Expenditure – refers to the amount paid by all categories of visitor for the
acquisition of consumption goods and services, as well as valuables, for and during tourism
visits/trips.
3. Tourism Generator – the tourism generator is that country/place from which people leave to
take part in a 24-hour or more activity away from their home, or usual place of dwelling (that
is when they are called tourists).
Example: US is a major tourist generating for Europe.

16
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Mass Tourism
-a great number of tourists. Mass tourism is obviously much more tourism than normal.

The Scope of Umbrella in Tourism Industry

- The tourism industry in centered around providing services to people: for example, a hotel
provides lodging and a tour guide provides recreation.
- These are usually not tangible things you can hold in your hand, or ram your head into and
get hurt.
- In comparison, a good-based industry provides physical, tangible items to consumers.
- Tourism is growing and so is the scope in tourism increasing. There are good scopes in
tourism and travel industry. You can get jobs in air ticketing, travel management and many
more. Thus, there is a good employment in the tourism sector.

Scale, Scope and Diversity of the Hospitality Industry

1. Scale – Restaurant, bar and pubs, lodging, entertainment, caters gaming, event
management, etc.
2. Scope – The GDP contribution, turnovers, employment and job opportunities.

Diversity
1. Sectors are linked with each other
2. Socioeconomic backgrounds

Scope of Hospitality Industry

1. Travel Agencies
- Provide assistance and convenience to people travelling to different parts of the country and
the world.
2. Tourist Offices and Tourism Ministry

Tourist Office – area that provides information to the tourists about the attractions of the
area, lodge etc.

Tourism Ministry – is an official government body that handles the issues pertaining to
tourism.

3. Airlines and Railway Travel

4. Spas
- It is a bath in which mineral or sea water is used for medicinal treatment.
5. Wellness Centers
- Provide health care for both the mind and the body.
6. Event Management
- It is the use of project management skill to organize and manage large-scale events like
conferences, marriage ceremonies, receptions, parties, conventions, concerts.
7. Cruise Companies
- Is a company that operates cruise voyages across the sea travelling to different destinations
around the world

17
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Hospitality Industry: An Overview of Strategy, Structure and Globalization

Strategy:
a. Strategic Alliances
b. Consortium
c. Franchising
d. Management Contracts
e. Multiple Branding

Structure: (Competitive Forces)

a. Existing Competitors
b.Threat of the new entrants
c. Suppliers
d. Buyers
e. Substitutes

*Globalization*
Transition in the image of the industry from being old-fashioned to modern in outlook.

Industry Expansion and The Need for Strategy

Ingram (1999)
-improve its operations and develop managers of the future

Webster and Hudson (1992)

-hospitality industry should accept Strategic Management

Edgar and Nisbet (1996)

-focus on creative and innovative practices to achieve the competitive advantage.

Business Format and Complexities

Business Format of Hospitality Industry - is DIVERSE which include:

chains
franchising
management contracts
consortium

In response to complexities, the multinational hospitality companies have subscribed to the following
generic strategies.

1. Export of the Brand that has been well developed in the home country for example McDonald's,
Accor, Forte, Marriott and Oberio's etc.

2. Broad based competitive positioning by the hospitality industry on account of the homogenous
needs and reason for the travel of the international customer.

3. Management expertise export by the multinational hotel companies to enter makers with the
minimum investment, which describe the current competitive approach of the lodging firms.

18
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Globalization and Growth Strategies

Increase in the global travel, market and environmental trends led to the internationalization of the
hospitality industry.

Periods of 1950 - 1955, international travel has grown by 21times (WTO - 1992) and this led to the
considerable growth in the industry.

Zhao and Merna (1996) explained the GLOBALIZATION of the hospitality and tourism industry has
accelerated under pressure of advances in technology, communication and transportation,
deregulation, elimination of the political barriers, sociocultural changes and global economic
development, as well as growing competition in the Global markets.
In case of Hotel Industry specifically, the internationalization has been based on the North American
branded, relatively up market and business.

Overview of Strategy, Structure and Globalization of Hospitality Industry

1. Strategic Alliances – help the hospitality managers to concentrate on the core activities by
centralizing their marketing activities and provide them the competitive strength and financial
stability to stay in the business.
2. Franchising – important option of the firm to expand its market.
3. Branding and Positioning
Brand positioning is defined as the conceptual place you want to own in the target
consumer's mind — the benefits you want them to think of when they think of your brand. An
effective brand positioning strategy will maximize customer relevancy and competitive
distinctiveness, in maximizing brand value
4. Management Contracts
A management contract is an arrangement under which operational control of
an enterprise is vested by contract in a separate enterprise that performs the necessary
managerial functions in return for a fee
5. Mergers and Acquisition
A merger is an agreement that unites two existing companies into one new company. There
are several types of mergers and also several reasons why companies
complete mergers. Mergers and acquisitions are commonly done to expand a company's
reach, expand into new segments, or gain market share.

Business acquisition is the process of acquiring a company to build on strengths or

weaknesses of the acquiring company. A merger is similar to an acquisition but refers more
strictly to combining all of the interests of both companies into a stronger single company

19
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Structure of Travel Organization

1. Travel Agent
2. Tour Operators
3. Accommodation
4. Various Kinds of Transport
5. Information and Guiding
6. Tourists Attractions

Hierarchy in Travel Company

Supervisory Travel Company Level

-higher authority holder lies in this level of hierarchy

- has full decision making power in the company.

Different Job Profiles

1. Travel Company Director
2. Travel Chief Manager
3. President
4. Division Manager
5. Vice President
6. Account Manager
7. Chief Executive Office
8. Director - Marketing
9. Director - Tour Planning
10. Senior Administrator
11. Chief Marketing Officer
12. Chief Finance Officer
13. Director - Planning & Coordination
14. Administrator
15. General Manager
16. Regional Director

Executive Travel Company Level

-mid level officials in the company

-managing as well as handling and taking care of the team of professionals under them while abiding
by the orders of seniors

20
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

Different Job Profiles

1. Administrative Assistant
2. Senior Business Developer
3. Customer Service Manager
4. Appraiser
5. Business Developer Associate
6. Project Manager
7. Customer Service Associate
8. Business Analyse
9. Team Leaders
10. Assistant General Manager

Operational Travel Company Level

-interact on daily is, face to face, with the clients of the company

Different Job Profiles

1. Manager
2. Sales Manager
3. Tour Manager
4. Customers Sales Representative
5. Manager of Customer Billing
6. Marketing and Promotional Manager
7. Assitant Office Manager
8. Sales Agent
9. Consultant
10. training Manager
11. Company Representative
12. Travel Executive
13. Clerk
14. Secretary
15. Receptionists
16. Associate
17. Intern

21
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

MIPTH Unit 6 Assessment Task

Name: __________________________________Date: _____________ Score:___________
Course/Year/Section: ______________________ Subject: ___________________________

Essay: 10 Points
1. Discuss the scale and diversity of hospitality industry.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

2. Look for a travel agency in your area, check its organizational structure, interview, its manager and
discuss each functions.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

Lacsonians!

Prepare for Online Quiz.

22
MICRO PERSPECTIVE OF TOURISM AND HOSPITALITY

REQUIRED READING (Textbook)

1. Lim, R. D. (2019). Micro Perspective on Tourism & Hospitality, Philippines: Mindshapers
Co., Inc.
Reference Books
1. Buaron, F. G. C. (2016). Tourism Development and Opportunities, Phi
2. Cruz, Z. L. (2013). Principles of Tourism 2, Philippines: Rex Bookstore
3. Lim, R. D. (2012). Principles and Scopes of Tourism, Philippines: Mindshapers Co., Inc.
4. Cruz, R. (2009). Principles of Travel and Tourism: Introduction to Tourism Theory,
Philippines: Tourism Research Philippines
5. Goeldner, C. (2009). Tourism Principles, Practices, Philosophies, New Jersey: John Wiley
& Sons
6. WTO Publications
7. Other relevant sources related to the unit

Hello!!! Lacsonians

Midterms Examination is
approaching.

23