Role of entrepreneurship in

Hospitality and Tourism Industry

#THC008
 Entrepreneurship
• Consists in doing things that are
not generally done in the
ordinary course of business
routine; it is essentially a
phenomenon that comes under
the wider aspect of leadership.

• Entrepreneurship is the dynamic

process of creating incremental
wealth. This wealth is created
by individuals who assume the
major risks in terms of equity,
time, and/or career commitment
of providing value for some
product or service.
 Notes:
• In the twentieth century, the
word entrepreneur has become
linked with free enterprise and
capitalism.

• Also, it was generally recognised

that entrepreneurs serve as
agents of change; provide
creative, innovative ideas for
business enterprises; and help
businesses grow and become
profitable.

• It has now become associated

with people who create added
value, whether that be social or
business value.
 Country
Maps & Clubs
Lodging
Guides
Retirement
Restaurants Communities
Sporting
Events
Travel
Agencies Contract
Airlines
Food
Service

Travel & Tourism Hospitality

 Travel and Tourism Industries
Hotels/motels Natural attractions Entertainment venues
Resorts Gaming entertainment Arts venues
Vacation ownership Travel agencies Historical sites
Hostels Convention bureaus Museums
Caravans Tour companies Luggage
Camping Hotel/rest. suppliers Real estate
Airlines Taxi services Construction
Cruise ships Cameras and film Luggage
Rail Maps & travel books Beverage mfr & dist
Car rental Shopping malls Auto/aircraft mfr
Bus coaches Service stations Motor fuel producers
Restaurants Sporting events Recreation equipment
Fast food Banking services Food producers
Wine merchants Reservation systems Advertising media
Theme parks Auto clubs Souvenirs
THE NEW BUSINESS ENVIRONMENT AND
TRENDS IN TOURISM

• The special relationship between the tourism

industry and its marketing environment means
that the depth of understanding needed
concerning the influence of the environment goes
far beyond that which suffices for many other
industries.

• The external environment of any industry

contains a myriad of interdependent factors
which need to be somehow separated out and
categorized to make analysis of them possible.
SOCIAL FACTORS

Tourism is a social phenomenon and it is influenced

by the society in which it exists. Tourism involves a
large-scale, if temporary, transfer of individuals
between different societies. This can create social
change of both a temporary and a longer-term
nature.

Key trends which should be accounted for in

tourism planning include:
• Demographic change.
• The democratization of tourism.
• Global urbanization.
 Hospitality Industries
Hotels/motels Natural attractions Entertainment venues
Resorts Gaming entertainment Arts venues
Vacation ownership Travel agencies Historical sites
Hostels Convention bureaus Museums
Caravans Tour companies Luggage
Camping Hotel/rest. suppliers Real estate
Airlines Taxi services Construction
Cruise ships Cameras and film Luggage
Rail Maps & travel books Beverage mfr & dist
Car rental Shopping malls Auto/aircraft mfr
Bus coaches Service stations Motor fuel producers
Restaurants Sporting events Recreation equipment
Fast food Banking services Food producers
Wine merchants Reservation systems Advertising media
Theme parks Auto clubs Souvenirs
The Hospitality Industry

• Lodging
• Food service
• Clubs
• Cruise ships
• Gaming
• Theme parks
• Sports and entertainment
• Travel
The Hospitality Business

• Lodging – putting heads on beds

– Many U.S. markets are mature
– Expansion and growth overseas

• Food service – putting cheeks in seats

– What would you like to eat?
– Where would you like to meet?
– Expansion and growth overseas
 Hospitality Industry Numbers
Lodging Food Service
 11.4M rooms worldwide  Strong growth
 3M rooms in U.S.  $1 billion/day sales
 Slowing in U.S.  10.2M employees
 Exceptions; casinos,  12M in 2006
limited service, timeshare  1/2 of all adults/day eat
 Continued expansion in restaurants
 44% of food $ spent in
restaurants
Food Service

• Eating and drinking places

– Quick service restaurants (QSR)
– Full service restaurants / bars
– White table cloth restaurants / bars

• Lodging food service

• Education food service
• Employee food service
• Health care
• Recreational food service
• Off-premise catering
Hospitality Industry

• The industry offers more career options

than most

• The work is varied

• There are many opportunities to be

creative

• This is a “people” business

Hospitality Careers
• Hospitality jobs are not nine-to-five jobs

• There are opportunities for long-term career

growth

• There are perks associated with many

hospitality jobs

• Hospitality jobs can be intrinsically satisfying

and meaningful
Entrepreneurial Operations

• More chances to be creative

• More control

• Better learning environments

Foodservice Industry

• Commercial Foodservices

• Institutional Foodservices

• Military Foodservices
Foodservice Industry

• Commercial Foodservices

– Restaurants
– Lunchrooms
– Cafeterias
– Fast food restaurants
– Hotel foodservice operations
– Food stands
– Social caterers
Foodservice Industry

• Institutional Foodservices

– Hospitals
– Nursing homes
– Schools & colleges
– Correctional facilities
– Employee cafeterias
– Airline catering
– Surface transportation catering
Foodservice Industry

• Military Foodservices

– Military bases
– Combat foodservices
– Officers clubs
– Cafeterias
Restaurant Industry
• The National Restaurant Association
[NRA] defines the restaurant industry
as that which encompasses all meals and
snacks prepared away from home,
including all takeout meals and
beverages.
Restaurant Industry:
Trends

• Labor shortage issues

• Cost of providing food and service
• Technology issues and benefits
• Consumer preferences
• Training
• Expansion
The End! :)