Define The Hospitality And Tourism (H&T) Context Evaluate

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Define the hospitality and tourism (H&T) context ?Resource allocation

Inseparability ?Nongovernmental Tourism Organizations

Small- and Medium-Sized Enterprises (SMEs) ?Highly dynamic, global political climate

Hospitality and Tourism ?Destination Management and Marketing Offices

Categorizing H&T Organizations ?Entry and exit barriers

Discussion Question Can we make generalizations about the hospitality and tourism industry?Discuss how characteristics of H&T organizations may influence the application of strategic management practices in H&T organizations ?Continued growth for the last two decades globally

Challenges to the H&T Industry ?Profit or nonprofit

Types of Hospitality & Tourism Organizations ?Tourism Offices or Destination Management Organizations ?Usually owner managed, run by an individual or small group with a workforce less than 250 employees

Differences among H&T Organizations ?Organizations must motivate customers to participate in service delivery process

Intangibility ?Evaluate characteristics and types of H&T organizations ?In your view, what are the differences in managing a restaurant compared to managing an ice cream factory?The Hospitality and Tourism Context ?#1 in the services sector (income and employment) ?A composite of distinct industries ?Dominate the tourism market worldwide ?Ideas, concepts, interactions, relationships, and experiences ?Intangible aspects are critical in customer satisfaction ?Rising customer demands and expectationsIncreasing demand worldwide ?11% world's GDP and 10% employment ?Uncertain economy ?Terrorism ???

Original text

Define the hospitality and tourism (H&T) context ◼ Evaluate characteristics and types of H&T organizations ◼ Discuss how characteristics of H&T organizations may influence the application of strategic management practices in H&T organizations ◼ Evaluate the current level of strategy research in the H&T field

Opening Case Mark Bright receives a new job offer (see the case study in page 20) ◼ Do you think Mark should accept the offer? Explain why? ◼ What type of skills will Mark need in managing a restaurant compared to managing an ice cream factory? ◼ In your view, what are the differences in managing a restaurant compared to managing an ice cream factory?

The Hospitality and Tourism Context ◼ #1 in the services sector (income and employment) ◼ Increasing demand worldwide ◼ 11% world’s GDP and 10% employment ◼ International arrivals 842 million; receipts $883 billion in 2006 ◼ Continued growth for the last two decades globally

Challenges to the H&T Industry ◼ Terrorism ◼ Natural disasters ◼ Health scares ◼ Fluctuations in exchange rates ◼ Uncertain economy ◼ Highly dynamic, global political climate

Hospitality and Tourism ◼ A composite of distinct industries ◼ It is interrelated and interdependent ❑ Travel ❑ Accommodation ❑ Food Service ❑ Clubs Gaming ❑ Theme Parks ❑ Attractions ❑ Entertainment ❑ Recreation ❑ Convention ❑ National Tourism Offices ❑ Destination Management and Marketing Offices

Categorizing H&T Organizations ❑ Functional area ❑ Size ❑ Motive ❑ Geographical coverage ❑ Profit or nonprofit

Types of Hospitality & Tourism Organizations ◼ Travel and Transport ◼ Accommodation (Lodging) ◼ Food and Beverage ◼ Entertainment and Recreation ◼ Tourism Offices or Destination Management Organizations ◼ Nongovernmental Tourism Organizations

Small- and Medium-Sized Enterprises (SMEs) ◼ Independent and flexible ◼ Dominate the tourism market worldwide ◼ More than 90 % of H&T organizations in Europe ◼ Usually owner managed, run by an individual or small group with a workforce less than 250 employees

Differences among H&T Organizations ❑ Internal and external environment ❑ Competition and substitutes ❑ Organizational culture and structure ❑ Cost structure ❑ Resource levels ❑ Competitive strategies ❑ Entry and exit barriers

Discussion Question Can we make generalizations about the hospitality and tourism industry?

Characteristics of H&T Organizations ◼ Perishability ◼ Intangibility ◼ Inseparability ◼ Simultaneity ◼ Heterogeneity ◼ Cost structure ◼ Labor intensive

Perishability ◼ Services are perishable ◼ Services cannot be stored ◼ Need to achieve full capacity ◼ High fluctuations in demand affect ❑ Cost structure ❑ Pricing ❑ Staffing ❑ Resource allocation

Inseparability ◼ Customers are present and participate in the service delivery process ◼ The separation of production and marketing is not possible ◼ In service delivery for H&T, frontline employees communicate with their customers ◼ Organizations must motivate customers to participate in service delivery process

Intangibility ◼ Services are more intangible ◼ Ideas, concepts, interactions, relationships, and experiences ◼ Intangible aspects are critical in customer satisfaction ◼ Rising customer demands and expectations

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