Understanding & Defining Tourism, Hospitality, Management/Organisations/Systems/ Industry

Dr. Sam Hazra

Session 1

System??

A set of connected things or parts forming a complex whole, in particular A set of things working together as parts of a mechanism or an interconnecting network

Management??

The process of dealing with or controlling things or people The responsibility for and control of a company or an organisation

Industry

Economic activity concerned with the processing of raw materials (i.e. products, services & experiences) through a management system to meet an ultimate goal A particular form or branch of economic or commercial activity; i.e. the tourism industry, the hospitality industry

Organisation??

Organisation is the foundation upon which the whole structure of management is built Organisation is related with developing a frame-work where the total work is divided into manageable components in order to facilitate the achievement of objectives or goals

Profit & Non-Profit Organisations

Organisations aimed at making profit: i.e. hotels, restaurants, retailers, Organisations aim is not solely to make profit: universities, councils, HMRC

Types of Business Organisations

1. Sole traders The sole trader is the most common form of business ownership and is found in a wide range of activities (e.g. window cleaning, plumbing, electrical work, busking). In the UK about 20% of sole traders operate in the construction industry, a further 20% in retailing, and about 10% in finance, and 10% in catering

Types of Business Organisations

2. Partnerships
Partnerships are usually set up by writing out a deed of partnership which is witnessed by a solicitor and sets out the important details such as how the profits and losses will be shared. People in business partnerships can share skills and the workload, and it may be easier to raise the capital needed. An ordinary partnership can have between two and twenty partners

Types of Business Organisations

3. Companies A company is owned by shareholders who appoint Directors to give direction to the business. The Chief Executive is the senior official within the company with responsibility for making major decisions. Specialist managers will be appointed to run the company on behalf of the Board

Types of Business Organisations

4. Franchises
Franchising is really the 'hiring out' or licensing of the use of 'good ideas' to other companies. A franchise grants permission to sell a product and trade under a certain name in a particular area In the United States almost half of all retail sales are made through firms operating under the franchise system like McDonald's which has a brand franchise. Franchising is becoming increasingly popular in the UK too

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Methods of Expanding a Business

Internal growth: hire more staff, introduce new equipments, increase output External growth: businesses can merge with other organisations (i.e. Universities & Colleges), combination of two increases the scale of operation

Franchising: where businesses lease its idea to franchise. New branches to open nationally & internationally

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We need to keep Culture in mind

It has a huge implication on the business activities Norms, Values, Beliefs, mutually accepted codes of Behaviour.. Trends of the very society you are in

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Culture

Individual Culture or Personal Factors: participation Group Culture or Group Factors: communication

Organisational Culture or Organisational Factors: manipulation

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Tourism

The commercial organization and operation of vacations and visits to places of interest Tourism is travel for recreational, leisure or busines s purposes. The World Tourism Organisation defines tourists as people "travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes"

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Significance of Tourism Industry

When the wider economic impacts of the tourism industry are taken into account, Travel & Tourism is forecast to contribute around $6.5 trillion to the global economy and generate 260m jobs, or 1 in 12 out of all jobs on the planet

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Hospitality

Like Tourism, the hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income.

Hence needs to manage it effectively

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How do we define hospitality [Industry]

Give me some characteristics of hospitality industry and/or hospitality management How would you define Hospitality?

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Defining Hospitality Industry

Many authors take this view of the industry producing goods to meet guests needs A common view in literature up to 20 years ago: beds for people away from home and food for those wishing/needing to eat away from home

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A Modern look from the 1990s?

It is conferred by a host on a guest who is away from home. It is interactive, involving the coming together of provider and receiver. It is comprised of a blend of tangible and intangible factors. The host provides for the guest's security, psychological and physiological comfort (King 1995 in Brotherton 2000)

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Defining Hospitality Industry

Is it a product, a process, an experience or all 3? What is the real essence of hospitality?

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Defining Hospitality Industry

a harmonious mixture of food beverage, and or shelter, a physical environment, and the behaviour and attitude of people (Cassee & Reuland 1983 in Brotherton 1999)

Reuland (1985) in Brotherton (1999) goes on to say that it is very much an exchange process where 3 elements are exchanged. They are: products, employee behaviour and the physical environment it is the friendly and generous reception and entertainment of guests, visitors, or strangers within a given time and space.

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The Pineapple Tradition

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Hospitality Industry

What does it consists of??

The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line, and additional fields within the tourism industry

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The Hospitality Industry (Knowles 2001)

Hotels Caterers Public Private Restaurants

Meetings & Facilities

Hospitality Industry

Leisure & Sport

Education & Training Pubs & Clubs

Gaming

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Putting Tourism, Hospitality & Events under the same umbrella

Over to you

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References/Recommended Books

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Knowles, T., 2001. Hospitality Management. 2nd ed. UK: Longman. Walker, J. R., 2010. Introduction to Hospitality Management. 3rd ed. London: Pearson. Shone, A and Parry, B (2004) Successful Event Management, 2nd ed., United Kingdom; Thomson Kotler, P. et al., 2010. Marketing for Hospitality and Tourism. 5th ed. New Jersey: Pearson. Walker, R., 2008. The Restaurant from Concept to Operation. 5th ed. New Jersey: John Wiley & Sons. Walker, J. R and Miller, J.E., 2010. Supervision: Leading Hospitality Human Resources. 6th ed. New York: John Wiley & Sons. Brotherton, B. (1999) Towards a Definitive View of the Nature of Hospitality and Hospitality Management. International Journal of Contemporary Hospitality Management 11(2), 165-170. Brotherton, B. (2002) Finding the Hospitality Industry (A Response to Paul Slattery) Journal of Hospitality, Leisure, Sport & Tourism Education 1(2),75-77. Brotherton, B. and Wood, R. C. (2000) Defining Hospitality and Hospitality Management. In, C. Lashley and A. Morrison (eds.) (2000) In Search of Hospitality Theoretical Perspectives and Debates. Oxford: Butterworth Heinemann

References
Bowdin, G; Allen, J; Harris, R and McDonnell, I (2006) Events Management, 2nd ed. Oxford: Butterworth- Heinmann Goldblatt, J. J (2001) Special Events- Global Event Management in the 21st Century, 3rd ed. New York: Wiley. Shone, A and Parry, B (2004) Successful Event Management, 2nd ed. United Kingdom: Thompson The Guardian (2010) Is the litter- free music festival just around the corner? [Online] Available at: http://www.guardian.co.uk/environment/green-livingblog/2010/jul/02/glastonbury-litter-reusable-cups-recycledtents [Accessed: 13 Sep, 2010] Watt, D. C (1998) Event Management in Leisure and Tourism, Harlow: Addison Wesley Longman Ltd

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Tea Serving Exercise

2 Cups 2 Saucers Choice of biscuits on a plate Napkins Sugar cubes in a pot Hot tea in a pot Spoons Milk in a pot You need to serve the Tea to a couple (Guests staying at your Hotel). Can you rank the order of the service please..

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