FUNDAMENTALS IN LODGING

OPERATIONS
HPC 1 INTRODUCTION TO HOSPITALITY INDUSTRY
Learning
Objective:

At the end of this lesson, the

student should be able to…
1. Discuss the nature of the hospitality
industry.
2. Name the characteristics of the
hospitality industry.
3. Enumerate the scope of the
hospitality industry
4. Define the terms used in the
industry
5. Explain the classification of
accommodation establishment.
 HOSPITALITY
• Hospitality is about people welcoming other people
into their homes or other places where they work or
INTRODUCTION spend their time.
TO HOSPITALITY • People who welcome visitors are called hosts.
• The people they welcome are called guests. The
INDUSTRY hospitality industry is service industry that includes
hotel and restaurant workers.
• Relationship between a guest and a host, wherein the
host receives the guest with some amount of
Nature of the goodwill, including the reception and entertainment
Hospitality Industry of guests, visitors, or strangers.
• 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.
Characteristics
of the
Hospitality
Industry
 • Described as a business
Product- which involves both tangible
goods and intangible
Service services where the quality of
the service can be
Mix considered more important
than the physical product.
Two-way Communication

• Through interactions with customers, important

messages about their needs and expectations can be
received by service staff for their immediate actions
to create customer satisfaction. Interactions between
internal staff or inter-departments is also critical since
total experiences of customers in using any lodging or
food and beverage services usually involve teamwork
and exchange of information within the organization.
 • Building long term relationship
with customers can benefit the
organizations for generating
Relationship stable revenues regardless of
the instability of seasons and at
Building the same time, developing
brand reputations through
positive word-of-mouth of the
repeated customers.
Diversity in Culture

• Due to differences in religious beliefs and values, some conflicts and

misunderstandings can be easily occurred. Therefore, staff should be open-
minded, and produce solutions together in resolving problems in their duties.
Such a cultural diversity implicates that local staff should generally understand
different cultures so flexible services can be provided to customers based on
their national cultures and harmony in cooperation with colleagues from
different nationalities can be achieved.
• From customers’ perspective, some of them abstain from meat due to their
religious beliefs or habit. Therefore, restaurants should provide vegetarian
food as an option to satisfy their needs.
• From staff’s perspective, eating pork or any food products with pork as
ingredient should be avoided if some colleagues are Muslims to show respect
to their religious belief.
Labor Intensive

• Refers to a process or industry that requires a

large amount of labor to produce its goods or
services. In labor-intensive industries, the costs
associated with securing the necessary personnel
outweigh the capital costs about importance and
volume.
In an increasingly competitive employment One of the fastest growing sectors of the THINK ABOUT THIS:
arena, one must prepare for and secure economy of our time is the hospitality
strong, definite jobs which lead to long- industry. The hospitality industry alone is a
term realistic career options and multi-billion-dollar enterprise. It is exciting,
opportunities. never boring and offers unlimited
opportunities.
It makes sense to prepare for
a job in which you have
numerous opportunities for
advancement, because it will
be an economic advantage for
you in the long run.
 • There are always some pros and cons for
working in the hospitality industry. The
Career concern whether a position suits to you or
not is mainly dependent on your own
Prospect of the character and personal interest. Some
general views, both positive and
Hospitality negative, about the career prospects of
hospitality industry are summarized
Industry below as reference for those who may
have intentions to join this unique and
challenging industry.
 ACCOMMODATION FOOD OTHER
SECTOR SERVICE RELATED
Positive View SECTOR SECTORS
Front desk receptionist Waiter/Waitress Tour Guide
Variety of Career Choices Room Attendant Host/ Hostess Tour Escort
• Due to the booming Telephone operator Cashier Travel Agent
development of the hospitality Reservation Food Theme Park
and tourism industry, many new
hotels and restaurants are opened Runner/Busser Crew
for catering the needs of both the Concierge Bartender Event Sales
visitors and locals. It facilitates a
huge demand of labor in the Bellman/Doorman Apprentice Other Customer
market, especially in some Service
developing countries. Positions
Business Center Banquet Server
Associate
Opportunities to Meet People with Different Backgrounds

• Having a chance to work in the industry, particularly in some front-line

positions means that there would be many opportunities for one to meet and
communicate with people with different backgrounds and cultures.
• For example, a hotel receptionist can perceive his/her position as a tourist
ambassador, which can be enjoyable and challenging. The job satisfaction
through winning customers’ smiles, as well as its’ interactive nature make
hospitality industry attractive to youngsters with an out-going character.
Long-Term Career
Development

• It is common that most people

must start their careers from the
entry-level. However, the career
paths are always quite clear for
employees and there are always
opportunities for them to get
promoted and proceed to
management levels based on their
experience and performance.
Successful stories are numerous in
this sector and someone starting
from room attendant can finally
turn into the general manager of a
hotel.
Negative Views
Long and Non-Regular Working Hours

a) Long and Non-Regular Working Hours

• Shift works are very common in food and beverage and accommodation
sectors. Despite of morning and evening shifts, some positions require staff
to work overnight, such as night auditors in the front desk and security
officers. As there are no such things of public holidays, staff are always
required to work on weekends or special days, such as Christmas and
Easter, etc. “Long working hours” seem to be the implicit norm of many
positions in the hospitality industry. Over-time works due to the shortage of
labors and peak seasons of businesses are frequent to both operational staff
and managers. The concerns about the bad effects on one’s health and
family life lead to people’s hesitation in joining the industry.
Work Under Pressure

• In most situations, staff are expected to provide “quick” and “high

quality” services without keeping their customers from waiting. The
pressure of maintaining the service efficiency and consistency, especially
in peak seasons could be tremendous. The need for frequent
communications with customers has especially created intense pressure
to staff in front line positions. Receiving complaints or handling angry
customers are resistances for people in starting their careers in this
industry.
Low Starting Salary

• Hospitality industry offers many relatively low-skilled entry level jobs.

With the exceptions of management or positions which require fluency
of languages or specific skills, staff with no experience generally have
low starting salaries. The differences between large-scaled and small-
scaled hotels or food service operations lead to further variations in staff
salaries.
Perceptions of Low Job Status

• As mentioned above that many positions are low-skilled in the

hospitality industry, some people would think their job status are
relatively lower when compared with other industries, such as banking
and finance. The misperceptions of ‘being a servant to others’ in the
Chinese culture plus other negative views introduced above have also
discouraged many graduates from joining the industry.
RELATIONSHIP “Guests” means those who are away from their homes
and it, therefore, has generated a perception that the
BETWEEN THE hospitality industry should include or overlap with the
tourism industry to a certain extent. Without a clear
HOSPITALITY definition about the scope of the hospitality industry,
some suggested that it should not only cover all
AND TOURISM lodging and food service operations but other tourism
related operations, such as airlines and theme parks.
INDUSTRY Besides, there were also some who considered putting
hospitality and tourism into one industry.
 Accommodation – To provide accommodation (and
usually food and drink) to people who for whatever
reason are away from home

Food and beverage – To provide food and beverage to

local, commuting, transient customers and tourists
Two main The hospitality industry includes hotels and
business sectors in restaurants, as well as many other types of
organizations or institutions that offer food, drink,
the hospitality shelter, and other related services. These products and
services are offered not only to people away from
industry: home, but also to local customers. A manager in the
hospitality industry, therefore, must keep in mind the
following three objectives:

1. Making the customers feel welcome personally.

2. Making things work for the customers; and
3. Making sure that the operation will continue to
provide service and meet its budget.
Scope of the Hospitality
Industry
The scope of the
hospitality industry
comprises of a range of
businesses that provide
services and facilities
such as
accommodation, food
and beverage,
entertainment, gaming,
and related products.
 Hotels

Motels
LODGING
SEGMENT: Inns

Resorts

Pensions
 Restaurants

FOOD AND
BEVERAGE Fast-food
SEGMENT

Catering
 Attractions
ENTERTAINMENT Gaming
AND RECREATION
Parks
Clubs
TRAVEL AND TOURISM

Transportation Travel agencies Tour operator

 RATING AND CLASSIFICATION OF HOTELS IN THE PHILIPPINES

There are many factors in classifying hotels. In the Philippines, hotel

classification is done through the process of accreditation.

Classification of Hotels undergo the process of accreditation conducted by the Department of

Tourism (DOT) in the Philippines; The goal is to primarily check if it would
pass the required standards for hotel operations, now called as the National
Accommodation Accommodation Standards. The hotel standards may fall into security,
hygiene, ease, and expediency for hotel guests. A certificate will be issued as a
Establishment proof that the property was able to meet the minimum standards and
recognized by DOT. The accreditation will also determine the classification of
hotels.

Hotels in the Philippines are classified before as De Luxe Class, First Class,
Standard Class and Economy Class. These classifications are graded according
to the existence of inventory checklist.
 • Location- Locality, Environment, Façade, Architectural features
• Bedroom Facilities and Furnishings- Size, Suite, bathrooms,
Telephone, Television, Mini Bar, Room Service, Furnishing and
lighting and information Materials
• Front Office/ reception- Lounge, Porter Service, Foreign

INVENTORY •
•
Exchange Counter, Mailing Facilities, Reception Amenities
Housekeeping- Linen, laundry, Dry Cleaning Service, Carpeting
Food and Beverage- Dining Room, Bar, Kitchen, Crockery
FALLS •
•
Recreational Facilities- Swimming Pool, Gym facilities
Entertainment – Live Entertainment
• Engineering and Maintenance- Maintenance, Air Conditioning,
INTO: Ventilation, Lighting, Emergency Power, Fire prevention
Facilities
• General Facilities- Outdoor Area, Parking/Valet, Function and
Conference Facilities, Shops, Security, Medical Service
• Service Staff- Professional and customer service oriented
• Special Facilities- Business center, limousine, airport and tour
services
 Size refers to the number of rooms. Various
categories based on size are:

• Small Hotel- a hotel with 25 rooms or less

• Average Hotel- a hotel with 26 to 99 rooms
• Above average hotel- a hotel with 100 to
299 rooms
• Large Hotel- a hotel with more than 300
rooms
 • Hotel operations vary in
size, function, and cost.
Most hotels and major
hospitality companies
ACCOMMODATION that operate hotels have
ESTABLISHMENT set widely accepted
industry standards to
classify hotel types.
General categories
include the following:
 • An upscale full-service hotel facility that
offers luxury amenities, full-service
UPSCALE accommodations, on-site full service
restaurant, and the highest level of
LUXURY personalized and professional service.
Luxury hotels are normally classifying with
at least four-five Diamond status or four-
five star rating depending on the country and
local classification standards.
 • Full-service hotels often contain
upscale full-service facilities with
a large volume of full-service
accommodations, on-site full-
service restaurant, and a variety of
on-site amenities such as
swimming pools, health club,
FULL children’s activities, ballrooms,
on-site conference facilities and
SERVICE other amenities.

Example:
Intercontinental,Hilton,Marriott
 HISTORIC • Smaller independent
non-Brande hotels that
INNS AND often contain upscale
facilities of varying size in
BOUTIQUE unique settings with full-
service accommodations.
HOTELS Some historic inns and
boutique hotels may be
classifying as luxury hotels.
 • Small to medium-sized
hotel establishments that
offer a limited number of
on-site amenities that
FOCUSED only cater and market to
specific demographic of
OR SELECT travelers. Most focused
or select service hotels
SERVICE- may still offer full-
service accommodations
but may lack leisure
amenities such as an on-
site restaurant or
swimming pool.
 • Small to medium-sized hotel
establishments that offer a very limited
number of on-site amenities and often only
offer basic accommodations with little to
ECONOMY AND no services, these facilities normally only
cater and market to specific demographic
LIMITED of travelers, such as the budget-minded
traveler seeking a “no frills”
SERVICE accommodation. Limited-service hotels
often lack an on-site restaurant but in return
may offer a limited complimentary food
and beverage amenity such as on-site
continental breakfast service.
 • Small to medium-sized hotels that offer longer-term full-
service accommodation compared to a traditional hotel.
Extended stay hotels may offer non –traditional pricing
EXTENDED methods such as a weekly rate that cater towards travelers in
need of short –term accommodation for an extended period.
STAY similar to limited and select service hotels, on –site
amenities are normally limited and most extended stay
hotels lack on an on-site restaurant.
 • - A form of property ownership also
TIMESHARE referred to as a vacation ownership of an
individual units of accommodation for
AND seasonal usage during a specified period.
Timeshare resorts often offer amenities
DESTINATION similar that of a full-service hotel with on-
site restaurant grounds, and other leisure –
CLUB oriented amenities. Destination clubs on the
other hand may offer more exclusive
private accommodation such as private
house in a neighborhood-style setting.
 • A small-sized low-rise lodging
establishment similar to that of a limited
service hotel but not referred to as a hotel ,
motel are often consist of exterior –
entrance rooms using outdoor walk ways.
Motels are often consider the “lowest
MOTEL classification” type of a lodging
accommodation and often operate with
minimal staffing levels.
 • A resort is a place used
for relaxation or
recreation, attracting
visitors for vacations and
/or tourism. Resorts are
places, towns or
RESORT sometimes commercial
establishment operated
by a single company.
 • Coffee shop Coffeehouse
and coffee shop are
related terms for an
establishment which
primarily serves prepared
coffee and other hot
beverages. Café or Cafe
may refer to a
COFFEE coffeehouse, bar,
tearoom, small and cheap
SHOP restaurant, transport café,
or other casual eating and
drinking place,
depending on the culture.
As the name suggests,
coffeehouses focus on
providing coffee and tea
as well as light snacks.
 • A nightclub (also known as a discotheque,
or simply a club or disco) is an
entertainment venue which usually operates
late into the night. A night club is generally
distinguished from bars, pubs or taverns by
the inclusion of a dance floor and a DJ
booth, where a DJ plays recorded
NIGHT CLUBS electronic music, disco, hip hop, rock, pop
and other forms of dance music. The music
in nightclubs is either live bands or more
commonly, a mix of songs played by a DJ
through a powerful PA system.
 • A pub, formally public houses, is a
drinking establishment fundamental to the
culture of Britain, Ireland, Canada, and New
Zealand.
PUBLIC HOUSES
 • A restaurant is a business establishment
which prepares and serves food and drink
to customers in return for money, either
paid before the meal, after the meal or with
a running tab. Meals are generally served
RESTAURANT and eaten on premises, but many
restaurants also offer take-out and food
delivery services.
 • bar is a retail business establishment that
serves alcoholic drinks- beers, wine, liquor
and cocktails- for consumption on the
BAR premises.