Globally the tourism and hospitality industry are growing at a steady pace. The history, characteristics and importance of both sectors are going to be described. There will be looked at the different types of business within the hospitality industry, the hotel grading system, the factors that affect the industry and its success. The tourism indicators and patterns of demand, emerging forms of tourism and the importance of transport, accommodation, attractions and events will be described. Tourism and tourist will be defined. The purpose and responsibilities of travel agents and tour operators will be described as well as the responsibilities of a tour guide.
2. Analysis of the hospitality industry:
2.1. History of the hospitality industry:
In the Middle Ages the Greeks developed thermal baths in villages which were used as rest points. The Romans built mansions for accommodation for travellers on business. The Caravanserais were developed in the middle east as a resting place for caravans. Monasteries, inns, hospices and hospitals were built to offer refuge for travellers. In the 1200s in China and Mongolia, staging posts were built for couriers. (CTH, 2016)
The 16th to 17th centuries are considered the start of the hospitality industry. Laws were introduced to govern hotel accommodation. (CTH, 2016)
During the 18th to 19th centuries the Tremont House in Boston was the first deluxe hotel in a city centre with inside toilets, locks on the doors and an a la carte menu. The Holt Hotel in New York City was the first to provide its guests with a lift for their luggage. Highway inns for stage coaches started to decline as trains began to replace horse-drawn transport. The New York Hotel was the first to be equipped with private bathrooms. In 1890 Le Grand Hotel, Paris was the first entire hotel to be equipped with electric light. The Fifth Avenue Hotel in New York City was the first in that period to provide lifts for its guests. In 1880, the Sagamore Hotel in New York was the very first to provide electricity in all its rooms. In 1890 the first school for hoteliers was founded in Lausanne, Switzerland. (CTH, 2016)
“20th Centuries: In 1919 the Barcelona Ritz had bathrooms with hot and cold water. The Ritz and Savoy in London, le Negresco in Nice the P1aza in New York, the Taj Mahal in Bombay were all constructed during this period. 1950s saw Club Méditerranée (G Trigano) develop the club village. In the 1960s new tourist resorts grew up around the Mediterranean: Spain and Greece, etc Yugoslavia thrived with the development of city and beach hotels.” (CTH, 2016. p. 4)
In the 1970s the construction of hotels or business people was witnessed. ‘Black gold’ (oil), attracted business people from all around the world to the Middle-East.
“20th Centuries: The third hotel industry boom (1980’s)
Rise of hotels near airports, hotels for conferences, health hotels, ski holiday hotels, holiday villages and marina hotels. The first Property Management Systems (Fidelio, Hogatex, etc) appeared in the hospitality market. The Far East began developing hotels for business people and tourists began to discover China, South Korea, Thailand and Japan. American and International chains prepared expansion plans to reach into Europe and the Middle- and Far East.”
(CTH, 2016. p. 4)
In the 1990s technology started to make an impact. Environment and energy conservation become important in marketing big chains. Reservation systems become more sophisticated enabling hotels to foster customer loyalty through database systems recording guests. Individual history and individualised marketing programmes, satisfying guests’ personal needs better than the competition. (CTH, 2016)
2.2. Characteristics of the hospitality industry:
The hospitality industry is defined as the friendly reception and treatment of guests or strangers as well as the quality of receiving and treating guests and strangers in a heartfelt, friendly way.
“Service is delivering on your promise. Hospitality is making people feel good while you’re delivering on that promise.” – Danny Meyer.
The industry is for sure one of the largest sectors in the world, that contributes more than 10% to the GDP. The industry also employs 8% of the global workforce.
The composition of the Hospitality industry consists of: Catering, Non-Serviced accommodation, Service accommodation, Education and professional, Trade association and Government related organisations.
“Providing a service to people.
It’s a 24 hours-a-day, 7 days a week industry.
We depend on customer satisfaction – unhappy guests may never return.
We don’t sell a product but an experience.”
(Aandbloem Guesthouse, 2018)
2.3. Importance of the hospitality industry:
“It can provide accommodation at a competitive rate. It is available all over the world even in small towns. It generates foreign income. Contributes towards job creation.”
(Aandbloem Guesthouse, 2018)
2.4. Different types of businesses within hospitality:
There are three main categories of the hospitality industry, none of them are independent of the economy, they all rely on a strong economy. All three of them share the same concept, customer service, which is the backbone of the hospitality industry:
Food and Beverage:
In the hospitality industry, food and beverages are extremely dominant. It is the major element of the hospitality industry and it can be anything from high-end restaurants, fast-food outlets, catering establishments to many other manifestations. The food and beverage trade can be a part of other businesses, such as in bowling alleys or movie theatres. When your restaurant is part of a hotel, food and beverage can dramatically improve the overall guest experience by offering excellent food and first-class customer service.
Hotels, bed and breakfast enterprises and other places offering lodging represent a broad segment of the hospitality industry. There is a range of businesses, from extravagant resorts to hostels and campgrounds. If your business is providing lodging, it should integrate comfort, efficiency and attentive customer service as its foundation. When travellers feel appreciated and catered to, they will tell others about their experience and may become repeat customers. A good word of mouth always benefits the business.
Travel and Tourism:
Another chief segment of the hospitality business comprehends transportation. This includes airlines, trains, cruise ships and the staff for each. For example, flight attendants and cruise staff function as food servers and hoteliers who provide food or drinks and a comfortable experience to customers. Business travellers and vacationers form the basis for this area of hospitality. Travel and tourism requires educated and well-informed employees in information technology, and they are also considered a part of hospitality.
2.5. Hotel grading system:
SA uses the star-grading system to evaluate and grade the accommodation institution / organisations. They assign stars to the organisations from 1 to 5, depending on the amount of points achieved.
star grading TGCSA’s minimum requirement
5 stars Outstanding/ extraordinary quality and luxury accommodation. Comparable with the best international standards.
4 stars Excellent quality in the overarching standard of the furnishings, facilities, and service.
3 stars Very good quality in the overarching standard of furnishings, facilities, and service.
2 stars Good quality in the overarching standard of furnishings, facilities, and service.
1 star Acceptable basic quality in the overarching standard of furnishings, facilities, and service.
(Via Afrika Graad 10 Leerderboek. 2011)
Procedures to follow for grading:
To be graded the owner must:
Step 1. Read and understand the grading requirements.
Step 2. Choose an assessor from the TGCSA’s available list.
Step 3. Apply for rating.
Step 4. Make an appointment with the assessor.
Step 5. Then visit the institution.
Step 6. Discuss the assessment with the owner.
Step 7. Do recommendations at TGCSA and provide photo evidence.
(Via Afrika Graad 10 Leerderboek. 2011)
2.6. Factors that affect the industry and its success:
Internal factors that affect industry: Man; Money; Materials; Machine; Organisational culture; Supply chain; Employee/ staffing levels; Resource availability. External factors that affect the industry: Political; Economic; Social; Technological; Environmental; Legal.
During interviews it was established that guesthouses make use of the PESTEL and SWOT analysis to determine the factors that will affect the business and its success.
3. Analysis of the tourism industry:
3.1. History of the tourism industry:
“It is believed that the tourism industry has a history surpassing 2,000 year. It is evident from the Roman era to the present forms of
tourism. It is evident that different motivators and facilitators have encouraged tourism throughout the years.
History shows signs of sudden drops in tourism related activities that were always followed by an immediate higher demand due to
these different motivators coming to light. For example, during the era of the Grand Tour, aristocratic families often sent young male heirs to Europe to educate themselves in the fields of art and literature as it was a trend that led to higher eligibility in terms of marital proposals.”
(CTH, 2016. p. 14)
Period Constituency Motivation Factors
3000 BC Egypt/ Babylonia Business
1500 BC Egypt Religion/ Leisure
6 BC Egypt Culture
5 BC Greece Religion
4 BC Athens, Sparta, Troy Guided Tours
2 BC Roman Empire Roman infantrymen VFR
Middle Ages Europe Haligdeg – Holiday
16 AD Europe Pilgrimages
17 – 19 AD Europe Culture/ Education
“Tourism in the middle ages took place mostly among the ruling class. For example, apprentice travelled in search of academies to educate themselves or engage on work. It is also the era, in which the Crusade took place, reflecting the popularity for pilgrimage.
Tourism in the modern age was made popular through industrial revolution that paved the way to the steam engine, steamship and locomotive late 1700’s and early 1800’s that made travelling easier.” (CTH, 2016. p. 15)
This period paved the way for the Grand Tours.
The Grand Tour: The journey was called the right of passage that mainly catered to young sons of British, French, German and Russian aristocrats that would last between 3 months – 6 years. It was mainly meant for education with regards to art, antiquities and architecture. Popular destinations were Florence, Naples, Paris, Rome and Venice. (CTH, 2016)
3.2. Characteristics of the tourism industry:
The tourism industry is characterised by three main areas:
Domestic tourism, Inbound tourism and Outbound tourism.
“UNWTO further classifies three forms of tourism:
Internal tourism = Domestic + Inbound
National tourism = Domestic + Outbound
International tourism = Inbound + Outbound”
(CTH, 2016. p. 13)
The tourism structure consists out of Accommodation, Attractions and Carriers such as tour operators or travel agents, tourists and the direct tourism supply chain. All of these falls under 3 sectors.
Public sector organisations: This involves a government sector or a department that concerns itself with matters relating to the industry. It is done at a national, regional or local level. There are eight main roles to play in the industry: Coordination, Planning, Legislation and regul, Stimulation, Marketing and promotion, Entrepreneurship, Social tourism and Protector of public.
Private sector organisations: These organisations are privately owned, and they don’t include government or public servants. There are different types and they are mainly profit driven entities. They include, tour operators and travel agents, etc.
Regulatory bodies: They are entities that set and regulates standards for destinations that make it acceptable for both tourists and the hosting nations. There are different levels of regulatory bodies. National regulatory bodies, Public regulatory bodies and Supranational regulatory bodies.
3.3. Importance of the tourism industry:
“Tourism industry is important, as it consists of any travel. People travel for both business as well as leisure. Tourism industry is there to assist people.”
(Flight Centre, 2018)
Tourism is also one of the most successful sectors when it comes to the multiplier effect. Tourism can boost the economy of the destinations and increase the number of work available. Tourism also protects the environment as well as the people and their culture, for example, UNESCO.
3.4. Tourism indicators and patterns of demand:
There are several indicators used globally to determine the patterns of demand.
The number of visitor arrivals, the mode of transportation used to arrive at the destination etc.
Different types of transport are: air, ferry, cruise ships and motor coach etc.
Contribution to local economy is measured through visitor expenses. This would include transportation charges, accommodation and dining etc.
Occupancy rate are compiled on a regular, weekly/monthly basis. Higher rates result in the need for extra employment needed and vice versa.
Through surveys conducted by governing bodies, where date and time of arrival and departure are asked, the visitor length of stay is determined. Using this information, a country is able to identify trends and patterns in the length of stay during different times of the year.
Take a count of passengers on domestic and international carriers. This too is useful in identifying travel trends.
3.5. Emerging forms of tourism:
Access: It involves the process in which a traveller can reach the desired destination. The ease of access is very crucial for the sustenance of the destination. Access involves air travel,
roads, ports, rail, disability and signage.
Attractions: The attractions that are available at a destination plays huge role when attracting tourists.
Accommodation: It is an important element of a destination, particularly when it comes to over-night stays. Accommodations has an impact on the travellers’ attitudes for the next day. If they didn’t sleep well, they will be negative the next day.
Activities: Activities normally differ from one individual to another. It can be active or passive, depending on their needs and wants.
Amenities: Also known as ‘extra services’. It can be found at certain destinations. It includes: public toilet facilities; visitor centre; restaurants and cafes, etc.
Ancillary services: Also known as additional or supplementary services. These are: car-hiring-, catering-, foreign-, laundry- and entertainment services such as a bar.
Health or medical tourism: It can be defined as any kind of travel to make a family member or one’s self healthier. The availability of medical services.
Mass tourism: It is when a large amount of people visits a specific destination at more or less the same time.
Culinary tourism: It is for the food and drink experience.
Dark tourism: Travels are associated with death and suffering.
Disaster tourism: To see sites that has experienced natural disasters.
Ecotourism: When the sites benefit the economy, environment and community.
Heritage or culture tourism: When the sites represent historical significance.
Space tourism: Tourism in space.
3.6. Importance of transport, accommodation, attractions and events:
Transportation is very critical in the tourism industry. Depending on your destination and client preferences, your transport will differ. If the tour is international, it will more applicable to use air travel for getting to your destination. Land transport is the most common way to travel if you have time and want to enjoy the journey. Waterborne transport is time consuming, unless you want it to be, for example using ferries to enjoy the ride. But no matter where, transportation makes the destinations more accessible and that increases the number of tourists.
Accommodation is a basic need of tourism. If there was no accommodation, the tourism industry would struggle to grow and expand. Even the most beautiful places in the world needs accommodation. Accommodation’s importance can be realised by imagining what would happen if all the accommodation facilities are removed from the tourist destinations.
Attractions is the core of tourism. It is classified into two categories, man-made and natural-made. Man-made attractions can be categorised according to the following two ways: Built attractions adapted for visitor’s purposes and Built attractions designed for visitors. Natural attractions consist of anything from beaches, fauna and flora, to mountains. It is about the natural beauty. Without any attractions, there wouldn’t be tourism, your only reason to travel would be for friends or relatives.
Events can boost the tourism industry and economy. Events and festivals attract people to a destination for a specific time and reason. It ensures income for community and is a bonus for already-made tourism businesses. For example, in SA there is the Voortrekker Monument and its there for historical and cultural tourists but from time to time they host music festivals and have a cycle track on their premises which boosts their income and increases their number of visits.
3.7. Definition of tourist and tourism:
“Tourism contains the activities of people travelling and residing in places outside their usual environment for not more than one consecutive year for leisure, business or other purposes.” (CTH. 2016. 34)
A tourist can be defined as:
“People who travel and stopover in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes not related to the exercise of an activity remunerated from within the place visited.” (The World Tourism organisation (UNWTO) – 2003)
3.8. Purpose of travel agents and tour operators and responsibilities of travel agents, tour operators and tour guides:
According to Flight Centre: “The purpose of Travel Agents is to assist clients with all their travel needs, we are here 24/7 and make sure all travel arrangements go smoothly. We are the people making travel dreams come true. The purpose of Tour Operators is to assist the agents. Travel Agents make use of them to book accommodation, transportation and tours. They don’t deal with the travellers directly.” (Flight Centre, 2018)
According to Flight Centre: “The responsibilities of Travel Agents is to make travel arrangements easier for the travellers. Booking their flights, travel insurance, accommodation and tours. We can advise on visa’s and travel documents. The responsibilities of Tour Operators are to assist the Travel Agent to book accommodation, tours and day tours. But they deal directly with the hotels and land operators. The responsibilities of Tour Guide are to guide travellers on their journey. They know the destinations in depth and share their knowledge with the travellers. They are on the trip with the travellers, making sure everything runs smoothly.” (Flight Centre, 2018)
Globally the tourism and hospitality industry are growing at a steady pace. The history, characteristics and importance of both sectors were described. The different types of business within the hospitality industry, the hotel grading system, the factors that affect the industry and its success, was looked at. The tourism indicators and patterns of demand, emerging forms of tourism and the importance of transport, accommodation, attractions and events was described. Tourism and tourist was defined. The purpose and responsibilities of travel agents and tour operators was described as well as the responsibilities of a tour guide.
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