The Hospitality Industry is a broad category of fields within the service

industry that includes lodging, event planning, theme parks, transportation,

cruise line, and additional fields within the tourism industry. The hospitality
industry is a multibillion-dollar industry that depends on the availability of
leisure time and disposable income. A hospitality unit such as a restaurant,
hotel, or an amusement park consists of multiple groups such as facility
maintenance and direct operations (servers, housekeepers, porters, kitchen
workers, bartenders, management, marketing, and human resources etc.).
Usage rate, or its inverse "vacancy rate", is an important variable for the
hospitality industry. Just as a factory owner would wish a productive asset to be
in use as much as possible (as opposed to having to pay fixed costs while the
factory is not producing), so do restaurants, hotels, and theme parks seek to
maximize the number of customers they "process" in all sectors. This led to
formation of services with the aim to increase usage rate provided by hotel
consolidators. Information about required or offered products are brokered on
business networks used by vendors as well as purchasers.
In looking at various industries, "barriers to entry" by newcomers and
competitive advantages between current players are very important. Among
other things, hospitality industry players find advantage in old classics
(location), initial and ongoing investment support (reflected in the material
upkeep of facilities and the luxuries located therein), and particular themes
adopted by the marketing arm of the organization in question (for example at
theme restaurants). Also very important are the characteristics of the personnel
working in direct contact with the customers. The authenticity, professionalism,
and actual concern for the happiness and well-being of the customers that is
communicated by successful organizations is a clear competitive advantage.
The hospitality industry's backbone is comprised of customer service, a concept
shared by all segments of the industry. Your small business may focus on one or
all facets of hospitality. How accomplished you and your staff are at serving
others will determine your business' level of success. You may find it easier to
excel in just one category of the hospitality industry. However, though costs and
challenges will increase, owning or managing several facets of hospitality can
provide you with many more opportunities to generate success
Three Categories of the Hospitality Industry

Food and Beverage

In hospitality, food and beverage reigns supreme. It is the largest element of the
hospitality industry and can take the form of high-end restaurants, fast-food
eateries, catering establishments and many other manifestations. The food and
beverage trade can symbiotically function as part of other businesses, such as in
bowling alleys or movie theaters. When your restaurant is part of a hotel, food
and beverage can dramatically enhance the overall guest experience by offering
excellent food and first-class customer service.
Accommodations
Hotels, bed and breakfast enterprises and other places offering lodging represent
a broad segment of the hospitality industry. Types of businesses run the gamut
from extravagant resorts to hostels and campgrounds. Your business' focus on
providing lodging should integrate comfort, efficiency and attentive customer
service as its foundation. Travelers value thoughtful treatment and simple
amenities. When they feel appreciated and catered to, your guests will tell
others about their experience and may become repeat customers.
Travel and Tourism
Another chief segment of the hospitality business encompasses transportation.
This includes airlines, trains, cruise ships and the staff for each. Flight
attendants and cruise staff function as food servers and hoteliers in their efforts
to provide food or drink and a comfortable experience. Business travelers and
vacationers alike form the basis for this area of hospitality. Travel and tourism
requires knowledgeable employees in information technology, and they are also
considered a part of hospitality. Destinations such as amusement parks draw
thousands of people, all of whom want to benefit from great customer service
while enjoying a memorable adventure.
Economics
The three foremost categories of the hospitality industry are driven by, and
dependent on, a strong economy. Your small hospitality business will thrive
when people are able to go out to eat or enjoy traveling. Conversely, when
economic times are challenging, you may decide to bolster the basics of your
business. For example, food and beverage businesses might offer special
activities, such as a fundraiser, or meal discounts on certain days of the week.
As a hotel owner, you might branch out and provide conference or special event
facilities, or transportation options such as specials on limousine services.

The Indian tourism and hospitality industry has emerged as one of the key
drivers of growth among the services sector in India. The third-largest subsegment of the services sector comprising trade, repair services, hotels and
restaurants contributed nearly US$ 187.9 billion or 12.5 per cent to the Gross
Domestic Product (GDP) in 2014-15, while growing the fastest at 11.7 per cent
Compound Annual Growth Rate (CAGR) over the period 2011-12 to 2014-15.
Tourism in India has significant potential considering the rich cultural and
historical heritage, variety in ecology, terrains and places of natural beauty
spread across the country. Tourism is also a potentially large employment
generator besides being a significant source of foreign exchange for the country.
Market Size

The number of Foreign Tourist Arrivals (FTAs) has grown steadily in the
last three years reaching around 4.48 million during JanuaryJuly 2015.
Foreign exchange earnings (FEEs) from tourism in terms of US dollar grew
by 3.2 per cent during January-July 2015 as compared to 1.9 per cent over
the corresponding period of 2013. FEEs during the month of July 2015 were
Rs 11,452 crore (US$ 1.74 billion) as compared to FEEs of Rs 10,336 crore
(US$ 1.57 billion) in July last year.

Foreign Exchange Earnings (FEEs) between January-July 2015 were US$

11.41 billion compared to US$ 11.06 billion in the same period last year. The
growth rate in FEEs in rupee terms in January-July 2015 was 6.9 per cent.
Investments
The tourism and hospitality sector is among the top 15 sectors in India to attract
the highest foreign direct investment (FDI). During the period April 2000-May
2015, this sector attracted around US$ 8.1 billion of FDI, according to the data
released by Department of Industrial Policy and Promotion (DIPP).
With the rise in the number of global tourists and realising Indias potential,
many companies have invested in the tourism and hospitality sector. Some of
the recent investments in this sector are as follows:

Fairfax-owned Thomas Cook has acquired Swiss tour operator Kuoni

Group's business in India and Hong Kong for about Rs 535 crore (US$ 85.6
million) in order to scale up inbound tour business

US-based Vantage Hospitality Group has signed a franchise agreement

with India-based Miraya Hotel Management to establish its mid-market
brands in the country.

Thai firm Onyx Hospitality and Kingsbridge India hotel asset

management firm have set up a joint venture (JV) to open seven hotels in the
country by 2018 for which the JV will raise US$ 100 million.

ITC is planning to invest about Rs 9,000 crore (US$ 1.42 billion) in the
next three to four years to expand its hotel portfolio to 150 hotels. ITC will
launch five other hotels - in Mahabalipuram, Kolkata, Ahmedabad,
Hyderabad and Colombo - by 2018.

Goldman Sachs, New-York based multinational investment banking fund,

has invested Rs 255 crore (US$ 40.37 million) in Vatika Hotels.

Japanese conglomerate SoftBank will lead the Rs 630 crore (US$ 95.6
million) funding round in Gurgaon based OYO Rooms.

MakeMyTrip will acquire the travel planning website Mygola and its
assets for an undisclosed sum, and will together look to focus on innovating
the online travel segment.
Government Initiatives
The Indian government has realised the countrys potential in the tourism
industry and has taken several steps to make India a global tourism hub. Some
of the major initiatives taken by the Government of India to give a boost to the
tourism and hospitality sector of India are as follows:

Government of India plans to cover 150 countries under e-visa scheme by

the end of the year besides opening an airport in the NCR region in order to
ease the pressure on Delhi airport.

The Tourist Visa on Arrival (TVoA) scheme enabled by Electronic Travel

Authorisation (ETA), launched by the Government of India on November 27,
2014 for 43 countries has led to sharp growth in usage of the facility. During
the month of July, 2015 a total of 21,476 tourist arrived on e-Tourist Visa as
compared to 2,462 during the month of July, 2014 registering a growth of
772.3 per cent. During January-July, 2015 a total of 1,47,690 tourist arrived
on e-Tourist Visa as compared to 14,415 during January-July, 2014
registering a growth of 924.6 per cent.

The Government of India has set aside Rs 500 crore (US$ 79.17 million)
for the first phase of the National Heritage City Development and
Augmentation Yojana (HRIDAY). The 12 cities in the first phase are
Varanasi, Amritsar, Ajmer, Mathura, Gaya, Kanchipuram, Vellankani,
Badami, Amaravati, Warangal, Puri and Dwarka.

Under Project Mausam the Government of India has proposed to

establish cross cultural linkages and to revive historic maritime cultural and
economic ties with 39 Indian Ocean countries.
Road Ahead
Indias travel and tourism industry has huge growth potential. The medical
tourism market in India is projected to reach US$ 3.9 in size this year having
grown at a CAGR of 27 per cent over the last three years, according to a joint
report by FICCI and KPMG. Also, inflow of medical tourists is expected to
cross 320 million by 2015 compared with 85 million in 2012. The tourism
industry is also looking forward to the expansion of E-visa scheme which is
expected to double the tourist inflow to India. Rating agency ICRA ltd estimates
the revenue growth of Indian hotel industry strengthening to 9-11 per cent in
2015-16. India is projected to be the fastest growing nation in the wellness

tourism sector in the next five years, clocking over 20 per cent gains annually
through 2017, according to a study conducted by SRI International.

What Exactly is the Hospitality Industry?

The hospitality industry is much broader than most other industries. The
majority of business niches are composed of only a handful of different
businesses, but this industry applies to nearly any company that is focused on
customer satisfaction and meeting leisurely needs rather than basic ones. While
this industry is very broad, there are some defining aspects that are important to
understand.
Defining Aspects
One of the most defining aspects of this industry is that it focuses on customer
satisfaction. While this is true of nearly every business, this industry relies
entirely on customers being happy. This is because these businesses are based
on providing luxury services. Very few hospitality businesses provide a basic
service that people need, like food or clothing.
Another defining aspect of this industry is its reliance on disposable income and
leisure time. For this reason, the majority of these businesses are for tourists or
rich patrons. If disposable income decreases due to a slump or recession, then
these are often the first businesses to suffer because customers wont have the
extra money to enjoy their services.
Different Businesses
Most people think that hotels alone belong to the hospitality industry, but hotels
are only one sector of this industry. Many forms of transportation that cater to
tourists are also part of this business world. For example, this niche includes
airlines, cruise ships and even fancier trains. Restaurants, general tourism and
event planning also belong to this niche.
Some of these businesses partially belong to the hospitality industry. For
example, a fast food restaurant would be considered convenient. A restaurant
that provides fancy food with amazing service would be providing a hospitality
service.
Level of Service
Regardless of the business, this industry relies heavily on providing an excellent
level of service. Customers are visiting the business to get away from their
troubles. A bad experience might keep them from returning ever again. Brand
loyalty is very important to these customers, so the associated companies do
their best to provide the best service.

Companies hire employees based on skill and behavior. Most of these

employees are great with customers, and they can flawlessly give the customer
what he or she needs.
Themes
Another defining aspect of the hospitality industry is its theme. This doesnt
apply to every business in this industry, but many of them use a certain theme to
attract customers. For example, a fancy restaurant might have a Mediterranean
theme to attract customers who like that type of food and atmosphere.
Not only does this set the business apart from competitors, but it also allows
customers to judge the business on another level. Hospitality businesses that
provide an authentic theme are often appreciated more than general hospitality
businesses. If the above restaurant cooks authentic Mediterranean cuisine and
uses the proper decorating elements, then this will make customers happy and
more willing to visit the business.
A hospitality business doesnt need a theme, but the vast majority of them use
one because customers love themed businesses

Hospitality is the business of helping people to feel welcome and relaxed and to
enjoy themselves. You may be providing them with accommodation, a meal or a
cocktail or even entertaining them. But it is all about customer service and
providing the best experience possible for your customers.
This website describes the different places you can work in and the types of jobs
you can do. It also describes the training required and how you can get it.
There are so many jobs you can do in hospitality and provided you like working
with people, youre sure to find one that suits you. Whether you work as a food
and beverage attendant in a hotel or restaurant, or a housekeeping attendant in a
beach resort, there is always an atmosphere of fun, you will get a sense of
achievement, and you will always make friends.
This website divides jobs available in the hospitality industry into four main
areas:

Rooms division

Kitchen

Front of house or Food and beverage and

Other roles in hospitality

These are generally how the sectors are known in a large hotel or casino but
throughout hospitality there are similar job roles and classifications, depending
on whether or not the business offers accommodation in addition to food and
beverage services. The titles of jobs may vary depending on where you work.
New starters in hospitality pretty well always begin in operational jobs, whether
or not they have done a course or have some hospitality sector training. But if
you do decide to follow a career in the hospitality industry, you may quickly
progress to supervisory or management positions. Top jobs include Food and
Beverage Manager, Housekeeper, Maitre d hotel, Bar Manager, Executive Chef
and of course, General Manager!
The Scope Of The Hospitality Industry Tourism Essay
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.
The term "hospitality" has become accepted over the years as a generic word,
which describes the well being of services and facilities related to tourists and
travellers.
The hospitality industry is represented in every country in the world and is
diverse and complex. It encompasses a range of free-standing hospitality
businesses and is also a component of a wide range of venues whose primary
function is not hospitality.
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. The
hospitality industry is a several billion dollar industry that mostly depends on
the availability of leisure time and disposable income. A hospitality unit such as
a restaurant, hotel, or even an amusement park consists of multiple groups such
as facility maintenance, direct operations (servers, housekeepers, porters,

kitchen workers, bartenders, etc.), management, marketing, and human

resources.

The hospitality industry covers a wide range of organizations offering food

service and accommodation. The hospitality industry is divided into sectors
according to the skill-sets required for the work involved. Sectors include
accommodation, food and beverage, meeting and events, gaming, entertainment
and recreation, tourism services, and visitor information.
Usage rate is an important variable for the hospitality industry. Just as a factory
owner would wish to have his or her productive asset in use as much as possible
(as opposed to having to pay fixed costs while the factory isn't producing), so do
restaurants, hotels, and theme parks seek to maximize the number of customers
they "process".
Gilmarie Salise 1
One of the adherent growing sectors of the economy of our
time is the hotel industry. The hotel industry alone is a multibillion dollar and growing enterprise. It is inspiring, never boring
and offer unlimited opportunities. The hotel industry in diverse
enough for people to work in different areas of interest and still
at work within the hotel industry.
Twenty first century's hotels provide modern precise services to
their guests. The customers or guests are always right. This
principle necessitated application of management principles in
the hotel industry and the hotel professionals realized the
instrumentality of marketing principles of managing the hotel
industry.
The approach of total quality management is found getting and
important function in the marketing management of hotels. The
emerging positive trend in the tourism industry indicates that
hotel industry is like a reservoir where the foreign exchange
flows. This naturally draws our attention on Hotel Management.
Like other industries, the hotel industry needs to explore
avenues for innovation so that a fair blending of core and

peripheral service is made possible. It is not to be forgotten

that the leading hotel companies of the world have been
intensifying research to enrich their peripheral services with the
motto of adding additional attractions to their service mix. It is
against this background that we find the service mix more
flexible in nature.
The recruitment and training programmes are required to be
developed in the features of the technical sophistication. The
leading hotel companies have been found promoting an
ongoing training programme so that the personnel come to
know about the use of sophisticated communication
technologies.
General classification of Hotel Industry
Classification of Hotels: on the basis of standards
Like most of the countries in the world, India could be an
example and has also hotels divided in different categories
depending on their location, facilities, infrastructures and
amenities provided. All the star hotels in India are government
approved with continuous control on the quality on the services
offered.
Five Star Hotels - the most luxurious and conveniently hotels in
India are grouped under Five Star Deluxe categories. Five Star
Hotel in India are globally competitive in the quality of services
provided, facilities offered and accommodation option. These
are the top of the line hotels located mostly in big cities. These
hotels provide all the modern facilities for accommodation and
recreation matching international standards in hospitality. In
such type of hotel HR department are established separately
and to execute and to follow the concept of HR strictly, HR
professionals are hired.
Four Star Hotels - A rung below five star hotels are Four Star
Hotels, these hotels provide all modern amenities to the
travellers with a limited budget .Quality of services is almost as
high as five stars and above categories. These kinds of hotels

are there for the travellers with the limited budget or for the
places which might not get the tourist traffic associated with
larger cities. In such type of hotel concept of HR is more or less
followed.
Three Star Hotels - These are mainly economy class hotels
located in the bigger and smaller cities and catering to the
needs of budget travellers. Lesser in amenities and facilities,
these hotels are value for money and gives good
accommodation and related services in the reduced price. In
such type of hotel concept of HR may or may not be present.
Two Star Hotels - This type of hotels are most available in the
small cities and in the particular areas of larger cities. Catering
for the backpacker tourist traffic, these hotels provide all the
basic facilities needed for general accommodation and offer the
lowest prices. In this type of hotel concept of HR is absent.
CHARACTERISTICS OF HOSPITALITY INDUSTRY

Open 365 days a year and 24 hours a day, longer working hours and work
includes weekends and holidays
Depends heavily on shift work
Strives for guest satisfaction, yet services are intangible (for use not
possession, cannot be test driven), production and consumption takes place at
the same time with the guest present

Perishability of the product

Still relatively labor intensive

The Nature of hotel work
Wages and Salaries: - The hospitality industry is labour intensive and many of
the jobs require low levels of skill and education.

Work Environment:-Environment can be quite good compared with other

industries. First class and luxury hotels are often considered fine places to
work, while conditions can be viewed as less satisfactory in some older, poorly
maintained hotels.
Hours and Days of Work:-Because the industry caters to travelers, who may seek
hospitality services at any hour of the day or night, a vast number of hospitality
operations are open when other businesses are closed. Except for some lodge
properties, hotels are open and staffed twenty-four hours a day, seven days a
week, including holidays.
Travel Opportunities: - One of the attractions in this industry is the potential it
offers for travel. A number of chain organizations in the segment customarily
transfer employees from one property to another every few years.
Opportunities for Advancement:-In hospitality, there is a long tradition of
mobility. Employees at all levels have always found it possible to change jobs
readily, and many have done so with great regularity.
People Oriented Profession:-Because the hospitality industry serves the needs of
the traveling public, the majority of people working in this industry are in
constant contact with guest and customers. Social skills and ability to
communicate effectively with others are important assets for people in this
industry.
TRENDS IN HOSPITALITY AND TOURISM

Globalization: the world is becoming a global village, there if free

movement worldwide

Safety and security : travelers are exposed to a lot of risks while

traveling and are very conscious of security of wherever the go

Diversity: diversity in terms of employees and also in terms of guests

Service: service is at the top of guests expectations. Training is crucial

to enhance service delivery

Technology: technology is a driving force of change improving

efficiency and integration of guest service. Integration presents serious
challenges.

Legal issues: guests are more aware of their rights. Government

regulations and complexities of employee relations must be taken care of.

Changing demographics: more and more people are joining the

traveling groups with more disposable income and better propensity to
take holidays.

Price-value: price and value are important to todays discerning guests

Sanitation: sanitation is critical to the success of any foodservice

operation. Guests expect to eat healthy foods that have been prepared in a
sanitary environment.

Hospitality Industry Philosophy

Evolved from traditional management roles to that of associates, giving resources
and support
Participative management resulting in empowerment
Corporate philosophies are moving away from production to guest service. People
are going out of their way to satisfy guests, embracing innovation and creativity
over status-quo attitudes
Service philosophy is a way of life.
Marriot Hotels for example say they exist to serve the associates, the
customers, and the community (Take care of Marriot People and they will
take care of Marriot guests
They believe in a commitment to continuous improvement and
overcoming adversity, and good old-fashioned dedication to hard work and
having
fun
while
doing
it.
To succeed in service:
1. Focus on the guest
2. Understand the role of the guest-contact employee
3. Weave service culture into education and training systems
4. Emphasize high-touch instead of just high-tech

5. Thrive on change.

6 Skills and Characteristics you Need to Work in the

Hospitality Industry
The hospitality industry is a several billion dollar industry that is dependant on
the availability of leisure time and disposable income. This industry offers a
wide range of career options, from cooking, waiting, hosting, or running a
resort. To be successful in the industry, youll need certain qualities,
certifications and skills that employers are searching for and that customers
expect. Below are six key skills and characteristics that sought after in the
Hospitality industry along with some advice that can put you on the path to
being successful in the Hospitality industry.

1. Commitment
In the hospitality industry, your main task is to be committed to ensuring
customer satisfaction. This requires you being willing to do whatever it takes to
keep customers happy and also create repeat business. An aspect of commitment
from employees is they must be very thorough in their work and realise that any
oversight could result in customer dissatisfaction, whereas going the extra mile
for a customer may result in repeat business and positive perception of the
company.
2. Interpersonal Skills
To be successful in hospitality, one must have top notch interpersonal skills, as
the very nature of the business is to provide spectacular customer service and
interact with customers on a regular basis. Taking that a step further theres a
direct correlation between those that are successful in the hospitality business
and those with excellent communication skills. This ability involves being able
to communicate effectively both orally and in writing, allowing you to make
positive connections with clients, guests, vendors, and even other employees.
3. Problem-solving
Thinking about problems that relate to your own role in the hospitality and
service activities and being able to contribute to productive outcomes is a

crucial skill. This involves developing creative, innovative and practical

solutions which can be developed through showing independence and initiative
in identifying and solving problems. Some circumstances were these may be
used include avoiding deadline issues by planning your personal day-to-day
operational activities or identifying and resolving routine customer or
operational problems using the predetermined policies and procedures to guide
effective solutions.
4.Teamwork
Successful members of the hospitality industry work well with others and can
be a productive members of a team. They value the contributions of everyone
and make significant contributions to an organisations overall success. Key
abilities required include being able to work effectively as a team member
through taking instructions form others and understanding your own role in
servicing the needs of the hospitality customer. Supporting other team members
to coordinate activities to achieve quality service delivery of the businesss
product and respecting cultural diversity of team members and seeking their
assistance to service the culturally diverse needs of customers.
5. Organised
To stay on top of the multitude of tasks youll face as a hospitality employee,
you have to be organised and multitask without difficulty. The Hospitality is an
industry where you need to be able to juggle multiple tasks, with all levels, and
careers in hospitality requiring employees to handle multiple responsibilities
simultaneously. On a typical day, a hotel manager might have to negotiate a
contract with a vacuum rental company, handle a dissatisfied guest, fill out
paperwork for an employee injured in a kitchen fire, and keep a smile on his or
her face to greet new guests, all in the course of one afternoon. Employers want
to know you can handle the fast paced, varied work load on offer whilst still
maintaining a high level of satisfaction.
6. Flexibility
Hospitality employees often have unusual hours or longer hours than your
average desk job and on the job, they must be ready to switch gears at a
moments notice if unexpected situations arise. Being adaptable to multiple
positions is an aspect of hospitality which is invaluable, being versatile makes

you indispensable to employers and having a larger skill set will make you
extremely resourceful allowing you to see a situation more clearly then
someone less experienced.
Ways to Improve Your Hospitality Skills
Those interested in undertaking a career in hospitality or furthering their career
should consider constantly upgrading their certifications. RAM Training offers
hospitality training courses that are essential in the industry, with venues now
governed by strict government regulation, it is essential for prospective
employees to have the required qualifications to begin employment. Examples
of qualifications are anyone seeking to work in a venue that serves alcohol,
must have completed certification in the Responsible Service of Alcohol (RSA),
as a legal requirement. If working in a venue that offers gambling further
certification in the for of Responsible Service of Gambling (RSG), is
compulsory. If youre already working in hospitality, RAM Training offer a
responsible management course which is perfect for those looking to expand
their career path. A career in hospitality is both fun and rewarding, and by
gaining further certification you will gain the skills to further your career.