Introduction to tourism and hospitality industry Learning Objectives • Understand the tourism and hospitality industry • Overview of the different tourism sectors • Classification of lodgings • Analyze different kinds of consumers and what satisfies their travel needs
Why study Tourism and hospitality? • Employs 214 million people worldwide (est 2004) or 8.1% of total employment • Leading economic contributor generating 10.4% of the world’s GNP (US$5,500B) • Source :- World Travel & Tourism Council
How about local tourism and hospitality industry? • Estimated employment of 150,000 to 200,000 jobs • 12% of GDP US$98.4B (2004) • S$9.6 B tourism receipts (2004), S$6.9B (2003), S$8.8B (2002) Source : Travel News Daily
Tourism’s economic contribution in Singapore • Integrated Resort complex (Hotels and casinos) expected to hire 10,000 direct staff plus indirect employment (5,000)
Tourism’s economic contribution in Singapore • Ready in 2008/2009 at Marina Bay and Sentosa with theme parks, shopping plazas, museum and convention halls • Total incremental employment of 35,000 jobs (unemployment 75,000 2004)
Tourism’s economic contribution in Singapore • Total incremental GDP of S$1.3 Billion • Tourism contribution from 13.1% 1993 to 6.1% 2002 • S$5B resort investment e.g. MGM-Mirage CapitaLand, Harrah’s Entertainment-Keppel Land etc.
Tourism’s economic contribution in Singapore • Expected to generate USD26.9billion of economic activity (Total Demand) in 2005 • 10.6% of GDP and 182,985jobs (8.3% of total employment) in 2005 • Expected to grow 7.0% in 2005 and by 6.2% per annum, in real terms, between 2006 and 2015.
Singapore tourism’s vision • On 11 January 2005, STB unveiled Tourism 2015, its vision for Singapore’s tourism industry over the next 10 years. The STB aims to double visitor arrivals to 17 million, triple tourism receipts to S$30 billion and add 100,000 new jobs to the tourism industry by 2015. • Source :- Travel News Daily
Definition of Tourism • Individuals or groups that are travelling away from home requiring all providers of activities, services, and industries that delivers a travel experience • e.g. You and your family travelling to Australia
Definition of Hospitality • Definitely not working in “Hospitals”
“Real” definition of hospitality • Lodging and food services (food and beverage) industries that cover theme and amusement parks, entertainment outlets, cruise companies • E.g Any F&B providers locally or overseas
Hospitality industry • Lodging :- continually changes to accommodate its guests, necessity for classifying hotels, cater to different groups of individuals. • May include hotels, motels, convention hotels, farm stay, bed and breakfast and apartments.
Types of accommodation • Luxury hotels and resorts e.g. 4 Seasons, Banyan Tree, Fullerton • Full serviced properties e.g. Ascott • Limited-Serviced properties e.g. no daily housekeeping • All-suites’ hotels (serviced apartments) Centrepoint http://rentalo.com/3376/perthserviced.html
Foodservice operations • Foodservice :- offering menu in different forms from small establishments (push cart) to large chain restaurant organisations. • Each foodservice operation responds to the needs and expectations of its market through its concept and menu.
Types of lodging ownership • Independent Ownership e.g. Bel Air Hotel • Chain ownership e.g. Hilton International • Management Contract e.g. Raffles Hotel • Company-owned and operated e.g. Furama 5) Franchise-licensed e.g. Holiday Inns
Types of lodging ownership • Independent Ownership : No affiliations, usually hotels that are so famous e.g. Bel Air Hotel in Los Angeles • So small that they don’t have the resources or see the need for brand affiliations
Types of lodging ownership 2) Chain Ownership :- Wholly owned by a parent chain corporation e.g. Hyatt, Hilton, Marriott or Fairmont, most people believe that if a hotel has a brand name, it’s owned by the parent chain, not very true as it could be “owned” in many forms.
Types of lodging ownership • Management Contract :- Provides executives to run the hotel, may use the chain’s brand name and reservations system • Odd situations where the management of one chain (say, Marriott) oversees a property owned or franchised by another chain (e.g. Hilton)
Types of lodging ownership • Company owned and operated own and run by its own executives in areas of marketing, reservations, day-day operations of the various hotels
Types of lodging ownership 5) Franchised licensed Outside person or company (a franchisee) owns the property, pays a royalty, a percentage of room sales, must adhere to at least the minimum lodging standards that the chain sets
Brands and brand families • Represent a distinct value level e.g. Four Seasons rep upscale and pricey, Motel 6 has a chain of budget Hotels, basic and inexpensive
Classification of accommodation Canada Select uses the following criteria to classify hotels and motels in Canada. cleanliness, state of repair and the amenities that each property offers. Each star level incorporates the requirements of the previous level and adds in new criteria. • http://www.thebuccaneerinn.com/canada_select.htm
Ratings of hotel accommodation • One Star • Two Star • Three Star • Four Star • Five Star
Ratings of hotel accommodation • 5 Star • Exceptional quality with the highest standard of furnishings, flawless service, meticulous guest care and exemplary provision and presentation of all aspects of the business. • 4 Star • Excellent quality, with the highest standard of furnishings, service and guest care. • 3 Star • Very good quality, with a commendable standard of furnishings, service and guest care. • 2 Star • Good quality, with a comfortable standard of furnishings, service and guest care. • 1 Star • Fair to Good quality, with an acceptable standard of furnishings and adequate service and guest care.
Ratings of hotel accommodation • Hotel Rate Type: San Francisco Hotels. Hotel Ratings: AAARating: 3 Diamonds; MOBIL Rating: 2 Star ...
How does it rate? • Certain countries rate by governments on lodging, e.g. Australia, France and Mexico • Most nations rate by private organisations, e.g. AAA, Michelin, Mobil Star Service
Categories of local hotels • Five star Hotels : Grand Hyatt, Meritus Mandarin, Grand Copthorne Waterfront, Goodwood Park, JW Mariott etc. • Four Star Hotels :- Orchard Parade, Plaza Parkroyal, Traders Hotel, Carlton Hotel etc.
Categories of local hotels • Three Star Hotels :- Albert Court, New Park, Grand Central, Allson, Hotel Asia, Oxford, Garden, Hotel Miramar etc. 4) Budget Hotels :- Hotel 81, Fragrance, Metropolitan YMCA, Cactus, Dickson Court, Metropole, Royal Peacock etc.
Sectors of the industry • Transportation :- moving people and cargo through airlines, ferry, cruise ships etc • Tour operators :- run packaged travel, independent tour packages with air/ground and land components
Sectors of the travel industry • Air industry :- airlines of all sizes and sorts and all airlines’ supporting services companies, for example, security, catering services. • International airlines include SQ, QF, CX, EK and MH etc.
Sectors of the travel industry • Travel agencies :- businesses that help the public with their travel plans and needs, for example, Chan Brothers, Sakura Travel, Sunny Holidays, Reliance Travel etc.
Sectors of the industry • Visitors’ Attractions :- some places have become icons of the destination, for example, Eiffel Tower (Paris), Disneyland (Anaheim, California), Great Wall of China (Beijiang, China), Harvard University (Boston, MA)
Sectors of the industry • Theme Parks :- “super” attraction, businesses feature themed areas(e.g. Disneyland’s Tomorrowland and Frontierland sections), Orlando has the highest concentration of theme parks anywhere, including four within Walt Disney World, two at Universal Orlando, and one at SeaWorld
Sectors of the industry • Car rentals :- different types of cars for rental at various rental points with facilities, for example, airports, hotels or suburban locations, Brand names in the industry include Avis, Budget, Hertz and National etc.
Distribution channels 3 key players in distributing tourism and hospitality products include :- • Consumers • Suppliers • Intermediaries
Why people travel? Self-motivating factors :- understand other cultures, beliefs, values, see the world,
Three types of travelers • Dependables • Venturers • Centrics
Three types of travellers • Dependables :- Prefer predictable routine lives and avoid unusual things or challenging situations 2) Venturers :- bolder people, different and challenging things and love to travel to unusual, exotic places
Three types of travellers 3) Centrics :- psychological middle ground between dependables and venturers, little adventure in their lives but not too much
Summary • Singapore’s tourism and hospitality industry is a major economic contributor to the economy • Tourism and hospitality sectors work closely together to ensure an increase in its tourism receipts • Singapore’s government is expected to introduce casino and Formula One when possible