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Intro to Hospitality Mgmt

by: Cecil Sawayn MD

Intro to Hospitality Mgmt HFT 3003

Marketplace > Florida Atlantic University > Hospitality > HFT 3003 > Intro to Hospitality Mgmt
Cecil Sawayn MD
GPA 3.81

Peter Ricci

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Peter Ricci
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This 361 page Class Notes was uploaded by Cecil Sawayn MD on Monday October 12, 2015. The Class Notes belongs to HFT 3003 at Florida Atlantic University taught by Peter Ricci in Fall. Since its upload, it has received 25 views. For similar materials see /class/221649/hft-3003-florida-atlantic-university in Hospitality at Florida Atlantic University.


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Date Created: 10/12/15
AUTO Ren rol Careers Chapter 11 Auto Rental Industry A This textbook section was provided simply for students to explore opportunities in the vast auto rental industry A Enterprise Holdlngs parent company of Enterprise National and Alamo car rental companies is a multibillion dollar company privately owned and the largest renter of vehicles in the United States Enterprise recruits regularly from FAU A Managing a rental our agency offers graduates a fast trackquot to managing their own quotbranchquot or quotstationquot Auto Rental Industry A The trade organization for the auto rental industry is the American Car Rental Association wwwccraorgcom and there is a South Florida chapter A Perks of this industry segment include pay torperformance type management settings and company car as part of one39s compensation quotcityquot or quotdistrictquot managers otlen earn in the six gure range A Other large employers in this segment where students may seek employment include Hertz Avis Thrifty Budget and Dollar Recreation Attractions and Clubs Chapter 12 ALWAYS LEARNING Recreation Leisure and Wellness The word recreation is defined as the use of time for therapeutic refreshment of one s body or mind Recreation allows people to have fun together and form lasting relationships built on the experiences they have enjoyed together This recreational process is called bonding Leisure is best described as time free from work or discretionary time GovernmentSponsored Recreation Various levels of government that constitute governmentsponsored recreation are intertwined yet distinct in the parks recreation and leisure services The founding fathers of America said it best when they affirmed the right to life liberty and the pursuit of happiness in the Declaration of Independence GovernmentSponsored Recreation Government raises revenue from income taxes sales taxes and property taxes Additionally government raises special revenue from recreationrelated activities such as automobile and recreational vehicles boats motor fuels transient occupancy taxes TOT on hotel accommodations etc The monies are distributed among the various recreation and leisurerelated organizations at thle federal stateprovincial city and town eves National Parks in the United States The National Parks Service was founded in 1916 by Congress to conserve park resources and to provide for their use by the public in a way that leaves them unimpaired The system s current roster of 397 areas covers more than 80 million acres of land o More than 300 million visitors go to the parks each year National Park Management The National Park Service is in the Department of the Interior and is overseen by a director who reports to the Secretary of the Interior There are 397 National Parks divided into seven regions The Director of the National Park Service establishes and approves servicewide natural resource policies and standards The National Park Service budget for 2011 is 314 billion and it employs a staff of 21 501 Public Recreation and Parks Agencies By the early 19003 fourteen cities had made provisions for supervised play facilities and the play ground movement gained momentum Boston established the first metropolitan park system in 1892 In 1898 the New England Association of Park Superintendents predecessor of the American Institute of Park Executives was established to bring together park superintendents and promote their prfessinal concerns Commercial Recreation Attractions Recreation management came of age in the 1920s and 1930s when recreation and social programs were offered as a community service Commercial recreation often called eco or adventure tourism provides residents and visitors with access to an area s spectacular wilderness through a variety of guided outdoor activities Theme Parks Began with Knott s Berry Farms During the 1920s in Buena Park California Knott s Berry Farm was a berry farm and a tea room Business grew and different attractions were added to the site Today Knott s Berry Farms is owned by Cedar Fair Entertainment Corporation Size and Scope of the Theme Park Industry Theme parks and attractions vary according to theme which might be historical cultural geographical and so on Some parks and attractions focus on a single theme others focus on multiple themes There are an abundance of theme parks located throughout the United States Introducing Walt Disney A Man With a Vision In 1923 at the age of twentyone Walt Disney arrived in Los Angeles from Kansas City to start a new business Mickey and Minnie Mouse first appeared in Steamboat Willie which also incorporated music and sound on November 18 1928 During the next few years Wait and Roy made many Mickey Mouse lms which earned them enough to develop other projects including full Ienggth motion pictures in Techniclor Magic Kingdom The heart of Walt Disney World and its first famous theme park is the Magic Kingdom It is a giant theatrical stage where guests become part of exciting Disney adventures It is also the home of Mickey Mouse Snow White Peter Pan Tom Sawyer Davy Crockett and the Swiss Family Robinson More than forty major shows and ridethrough attractions not to mention shops and unique dining facilities ll its seven lands of iin ation Epcot Epcot is a unique permanent and ever changing world s fair with 2 major themes Future World and World Showcase Highlights include lllumiNations Reflections of Earth a nightly spectacle of fireworks fountains lasers and classical music Disney s Hollywood Studios With fifty major shows shops restaurants ride through adventures and backstage tours Disney s Hollywood Studios formerly Disney MGM Studios combines real working motion picture animation and television studios with exciting movie attractions Walt Disney World is the most popular destination resort in the world since its opening in 1971 Universal Studios Guided tours on its famous movie sets Most formidable competitor facing the Disney Corp One reason for Universal s success is its adaptation of movies into thrill rides Another is their commitment to guest participation Largest movie studio and theme park Universal lelllywood Sea World Parks and Entertainment Leader in conservation and education Dedicated to preserving marine life and uses innovative programs to research various wildlife dilemmas Includes Sea World Busch Gardens Adventure Island Water Country Sesame Place Discovery Cove Hershey s 1900s Started producing mass quantities of milk chocolate resulting in immediate success The following decades brought many product line expansions 1907 Milton Hershey opened Hershey Park as a leisure park for employees of Hershey s Company 1908 The park started its soontobe huge expansion The park continued to add more rides and attractions as the park continued to expand the company decided to open the park s doors to the public 1971 The park underwent redevelopment to turn the small regional park into a large theme park Regional Theme Parks Dollywood In 1961 a small attraction with a Civil War theme called Rebel Railroad opened its doors to the public This attraction is now known all across the world as Dollywood The name came about in 1986 when Dolly Parton became a coowner of the park LegoLand Owned and operated by the Lego Group Marketed toward young families Regional Theme Parks GatorLand Started when Owen Godwin built an alligator pit in his backyard After World War II Godwin bought a 16acre plot located off Florida s second most traveled highway Provides a closeup view of Florida s animals in their native habitat Wet n Wild First major water park in the US In 1998 owner George Millay sold the Orlando ark to Universal Studios recreation Group Animal Attractions Zoos Approximately 150 million people visit a US zoo every year The first zoo in the United States was the Philadelphia Zoo built in 1859 Even today zoos are extremely popular in the United States and Canada and almost every major city has one Animal Attractions The world famous San Diego Zoo is located in historic Balboa Park in downtown San Diego California Founded in 1916 by Dr Henry Wegeworth the 200 s original collection totaled 50 animals Today it is home to over 4000 animals of more than 800 different species The 200 also features a prominent botanical collection with more than 700000 exotic plants Animal Attractions The National Zoological Park in Washington DC is part of the respected Smithsonian Institution More than 2000 animals from nearly 400 species make their home in this zoo Aquariums are attractions that provide thrilling educational experiences to millions of tourists each year They are also multimilliondollar showpieces displaying creatures vastly different from us who dwell on land Historic PlacesSites The first sites visited in recorded history were the Seven Wonders of the ancient world which included the Great Pyramid of Giza Egypt the Hanging Gardens of Babylon Iraq the Statue of Zeus at Olympia Greece the Temple of Artemis at Ephesus Turkey the Mausoleum at Halicarnassus Turkey the Colossus of Rhodes Greece and the Lighthouse of Alexandria Egypt Historic PlacesSites Historic places sites and museums are a part of what is now called heritage tourism Heritage tourism has gained prominence in recent years particularly with baby boomers and older adults The National Register of Historic Places is the United States official list of districts sites buildings structures and objects worthy of preservation with more than 85000 listings Historic PlacesSites A few of the more important US historical attractions Monticello home of Thomas Jefferson The French Quarter in New Orleans The Martin Luther King Jr National Historic site The Grand Ole Opry in Nashville The Freedom Trail in Boston The Liberty Bell in Philadelphia Museums The number of museums in the United States has more than quadrupled since 1950 There are many types of museums including general art science and technology natural history history and military 0 The Smithsonian Museum in Washington DC holds almost 140 million artifacts works of art and specimens Smithsonian museums attract approximately 242 million visitors annually and entrance is free Museums The Field Museum located in Chicago is a unique institution of public learning that utilizes its collections researchers exhibits and educational programs to increase public knowledge of the world The Museum was founded in 1893 as a place to house biological and anthropological collections for a world exposition Performance Arts Theaters once were immensely important In a time before people had access to modern inventions like radio or television books and theater were the only entertainment available Theater is no longer attractive only to the upper classes affordable prices make it reasonable entertainment for almost anyone Des na ons Some destinations are major attractions in themselves Athens the capital city of Greece is one of the world s oldest cities London was once the center of an empire that included approximately one quarter of the globe Paris is a city of beautiful buildings boulevards parks markets and restaurants and cafes They say All roads lead to Rome Rome the Eternal City also called the Cradle of Civilization Managing Attractions Managing attractions and theme parks has many similarities to managing any business Theme park managers use the same main management functions Planning Organizing Decision making Controlling Clubs Private clubs are places where members gather for social recreational professional and fraternal reasons The club is like a second home but with diverse facilities and staff to accommodate the occasion Many business deals are negotiated on the golf course New clubs are born when a developer purchases a tract of land and builds a golf course with a clubhouse surrounded by homes or condominiums Size and Scope of the Club Industry When the total resources of all the clubs are considered land buildings equipment thousands of employees etc we are talking billions of dollars of economic impact Club Management Similar to hotel management The main difference between club management and hotel management is that with clubs the guests feel as if they are the owners Another difference is that most clubs do not offer sleeping accommodations Members pay an initiation fee and annual dues Club Managers Association of America Goal is to advance the profession of club management by fulfilling the educational and related needs of the club imianaers Club Management Structure Articles of incorporation and bylaws determine structure Members Members elect the officers and directors of the club The club president is the lead member or official in policymaking The vice president is groomed for the role of president Executive Committee Activities grounds and funding Treasurer Gives advice on financial matters General Manager Daytoday operation Asset management Preserving and fostering the club culture Secretary Records minutes of meetings Management to Leadership Figure 101 Types of Clubs Nearly all country clubs have one or more lounges and restaurants and most have banquet facilities Some country clubs charge for an initiation fee some as much as 250000 Country clubs have 2 or more types of membership Full membership enables members to use all the facilities all the time Social membership only allows members to use the sepia Types of Clubs City Clubs predominantly business oriented Professional Clubs For people in the same profession Social Clubs Allow members to enjoy one another s company members represent many different professions yet they have similar socioeconomic backgrounds Athletic Clubs Gives city workers and residents an opportunity to work out swim play squash andor racquetball and so on Dining Clubs Generally located in large city office buildings Un ivers Clubs Private bs for alumni or alumnae Types of Clubs Military Clubs Cater to noncommissioned officers and enlisted officers Yacht Clubs Provides members with moorage slips where their boats are kept secure Fraternal Clubs Includes many special organizations guch as the Veterans of Foreign Wars Elks and hriners Proprietary Clubs Operate on a forprofit basis owned by corporations or individuals individualslwanting to become rgiembers purchase a membership not a share in t e c u Sustainable Golf Course Management The golf course industry recognizes sustainability as it is referenced by the Environmental Protection Agency EPA and the United Nations which indicates that it is meeting the needs of the present without compromising the ability of future generations to meet their own needs Golf course facilities are prime candidates for reducing or reusing waste Noncommercial Recreation Noncommercial recreation includes Voluntary organizations which are nongovernmental nonprofit agencies serving the publicatIarge ie the YMCA Campus Recreation programs include involvement by campus recreation offices intramural departments student unions residence staffs or other sponsors Armed Forces Recreation provides wellrounded welfare and recreational programs for military personnel Employee Recreation promotes employee efficiency through recreational activities Recreation for special populations involves professionals and organizations who serve groups such as those with mental illness mental retardation or physical challenges Trends An increase in all fitness activities A surge in travel and tourism In addition to a continuation of traditional recreation and leisure activities special programs targeted toward atrisk youths and latchkey children are also being developed Several additional products in the commercial sector Additional learning and adventure opportunities for the elderly The End Rooms Division Operations Chapter ALWAYS LEARNING Functions and Departments of a Hotel The primary function ofa hotel is to provide lodging accommodations A hotel is comprised of several business or revenue centers Hotels exist to provide service and to generate a profit for the owners Functions and Departments of a Hotel Hotels whether they are chain affiliated or independent properties exist to serve and enrich society Hotels are meant to provide all of the comforts of home to those away from home Management Structure Management structure differs among larger midscale and smaller properties Someone must be responsible for each of the key result areas that make the operation successful For example a small property may not have a director of human resources but each department head will have general dayto day operating responsibilities for the human resources function 39 The manager is ultimately responsible for all decisions Role of the Hotel General Manager The hotel General Manager has a multitude of responsibilities Heshe must ensure a reasonable return on investment keep guests satisfied and keep employees happy Larger hotels can be more impersonal Here the general manager may only meet and greet a few VIPs In the smaller property it is easier though no less important for the GM to become acquainted with guests to ensure that their stay memorable and to secure their return Role of the Hotel General Manager The GM is ultimately responsible for the performance of the hotel and the employees The GM is the leader of the hotel As such she or he is held accountable for the hotel s level of profitability by the corporation or owners Effective GMs hire the best people and set the tone a structure of excellence Progressive general managers empower associates to do anything legal to delight the guest The Executive Committee The Executive Committee is comprised of key managers of the hotel Typical members of the Executive Committee would be directors of the following departments human resources food and beverage rooms division marketing and sales engineering and accounting Executive Committee meetings usually last 1 to 2 hours once a week Typical topics of discussion will focus on occupancy Total Quality Management forecasts guest and The Executive Committee Figure 31 Executive Committee Chart for a 300 room Hotel General Manager I I l l r 1 Director of Director of Director of Director of Director of Director of Human Food and Rooms Marketing Engineering Accounting Resources Beverage Division and Sales The Departments Rooms Division The rooms division director is held responsible by the GM for the efficient and effective leadership and operation of all the rooms division departments The Rooms Division is comprised of the front office reservations housekeeping concierge guest service security and communications Departments Front Office The main duty of the Front Office manager is to enhance guest service by developing services to meet guest s needs Heshe supervises Guest Service Associates GSAs who interact directly with the guest during checkin check out etc Often the front office is described as the hub or nerve center of the hotel The guest relies on the desk for information and service throughout hisher stay The Guest Cycle Figure 33 Reservation F rquot k K imz a f Mme Guest Charges Alma Registratian 1 Checlmut 39 mourn assignment Con rmation a payment h A 1 v i 7 Y Veri catiun 1 Guest lncurs r Night Audit 1quot Charges 5 H liaam39i39ng the GuestPast Guest Charges Departments Front Office The main functions of the front office are a to sell rooms b to maintain balanced accounts 0 to offer services such as handling mail faxes messages and local and hotel information o In selling rooms the front office attempts to achieve 100 occupancy Upselling and Yield Management can help increase room sales The interaction of supply and demand also impacts the ability to sell rooms Departments Front Office Maintaining balanced guest accounts begins with advanced deposits and opening the guest folio Because the Front Office is staffed 24 hours a day it is the logical center to handle guest information needs such as mail faxes messages and local and hotel information Departments Night Auditor A hotel must balance its accounts on a daily basis At approximately 100 am when the hotel has quieted down the night auditor begins the task of balancing the guest accounts receivable The daily report contains a key operation ratio Room Occupancy Oo ROP This is calculated by dividing the number of rooms occupied by the number of rooms available Departments Night Auditor The Average Daily Rate ADR is together with the occupancy percentage one of the key operating ratios that indicates the hotel s performance ADR is calculated by dividing the total of rooms revenue by the total number of rooms sold Revenue Management Revenue management is used to maximize room revenue at the hotel It is based on the economics of supply and demand which means that prices rise when demand is strong and drop when demand is weak Although management would like to sell every room at the highest rack rate this is not possible Conventions groups and organizations are often granted a reduced room rate as an incentive to stay at a particular pro Revenue Management What revenue management does is allocate the right type of room to the right guest at the right price so as to maximize revenue per available room The purpose of revenue management is to maximize revenue and increase profitability Revenue Management Revenue per available room or REV PAR was developed by Smith Travel Research It is calculated by dividing room revenue by the number of rooms available For example if room sales are 50000 in one day for a hotel with 400 available rooms then the o REV PAR formula is 50000 divided by 400 or a REV PAR of 125 Revenue Management Hotels use REV PAR to see how they are doing compared to their competitive set of hotels Hotel operators use REV PAR as an indicator of a hotel s revenue management program Revenue Management Energy management systems can reduce energy consumption by switching off when the guest is out of the room They also can keep tabs on room occupancy lighting minibar smoke detectors locks and guest amenities Call accounting systems CAS are systems that can track guest room phone charges working in conjunction with PBX and and offer different rates for guest calls Revenue Management Global distribution systems are electronic markets for travel hotel car rental and attraction bookings A central reservation system CRS houses the electronic database in the central reservation office CRO With such a system hotels can avoid overselling rooms by too large a margin A CRS can also prcwide yield management information for a hotel Billing Guests Billing guests has become much easier with the aid of computers PMSs aid large hotels to make faster transactions and provide a more efficient service to their guests These systems help the hospitality associates bill their guests within seconds Revenue Management Security is one of the highest concerns of guests who visit hospitality businesses Systems include surveillance systems electronic door locking systems and inroom safes In order to provide a homey and convenient experience for the guest hotels provide such services and amenities as dining televisions telephones Internet connections minibars hygiene products pools meeting space and business and concierge service Reservations The Reservations Manager is the head of the reservations department He she reports directly to the Rooms Division Manager This department is often the first one that a prospective guest has contact with and therefore impressions made are lasting Quality service and attention to detail are critical The reservations department is responsible for selling hotel rooms for the maximum dollar amount while exceeding guest expectations Reservations The corporate central reservations system interfaces with hotel inventory and allows reservations by individual hotel reservations personnel Once a reservation has been made the room is immediately deducted from the inventory of rooms for the duration of the guest s stay Communications CBX or PBX The CBX or PBX includes inhouse communications guest communications voice mail messages and emergency centers It is a profit center for the hotel because hotels generally add a fee of 50 to all long distance calls and may charge fees as high as 125 for local calls Guest ServicesUniformed Services The guest service staff has the unique opportunity to make or break that first image of the hotel and the experience the guest will have Door attendants greet guests assist with the opening and closing of doors handling luggage and providing information o The bell person is responsible for escorting the guests and transporting luggage to their rooms Hweshe must have knowledge about the area as well as the hotel and its se Concierge Some of the ways the concierge may assist guests are by arranging tickets to popular eventsshows in town making reservations at restaurants providing advice on local activities reserving airline tickets and reconfirmation of flights and special requests such as shopping It is important that the concierge has excellent knowledge of the hotel the city and international details It is a de nite strength if the concierge is able to speak several foreign languages Housekeeping The housekeeping department employs the largest number of employees in the hotel The executive housekeeper is the head of the department The executive housekeeper is responsible for a substantial amount of record keeping In addition to the scheduling and evaluation of employees an inventory of all guest rooms and public area furnishings Green Hotel Initiatives This subdepartment generally reports to the executive housekeeper Environmentally conscious companies are helping to avoid environmental degradation and are saving money while being good corporate citizens Ecoefficiency also generally termed green is based on the concept of creating more goods and services while using fewer resources and creating less waste and pollution SecurityLoss Prevention Hotels are responsible for the safety of their guests Protection of guests and their property is a key element of hotel operations Securityloss division is responsible for maintaining security alarm systems and implementing procedures aimed at protecting property of guests employees and the hotel itself Trends Some trends include diversity in workforce increases in use of technology continued quest for increases in productivity revenue management greening of hotels security diversity of guests ADA compliance web sites and in room technology The End TOUrism Chapter 2 ALWAYS LEARNING What is Tourism World s largest industry World Tourism Organization A specialized agency of the United Nations The leading international organization in the field Plays a role in the Development of sustainable tourism Development of universally accessible tourism Continuation of economic development International understanding peace prosperity and respect for human rights and freed oms What is Tourism For many developing countries tourism represents a large percentage of GDP and a way of gaining a positive balance of trade with other nations Tourism comprises the activities of persons traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure business and other purposes Frm the de nition of What is Tourism The WTO and the World Travel amp Tourism Council declare the travel and tourism industry to have the following characteristics 24 hours a day 7 days a week 52 weeks a year economic driver Accounts for 91 of the GDP Gross Domestic Product Worldwide Employs 259 million people 88 of the global workforce Leading producer of tax revenues Benefits of Tourism Tourism Provides governments with substantial tax revenues Offers the greatest global employment prospects This trend is caused by The opening of borders An increase in disposable income and vacations Reasonablypriced airfares An increase in the number of people with time and money More people with the urge to travel LongTerm Prospects Tourism 2020 Vision International arrivals expected to reach over 18 billion by 2030 Europe East Asia the Pacific and the Americas are the top receiving areas There is interdependency between the various segments of tourism Travel lodging foodservice and recreation Each segment is to an extent dependent on another for business The Five Ages of Tourism The historical development of tourism has been divided into five distinct ages or periods PreIndustrial prior to 1840 The railway age The automobile age The jet aircraft age The Cruise ship age Prelndustrial Revolution Travel in the middle ages was mostly for religious or trade reasons People made pilgrimages to various shrines Muslims to Mecca and Christians to Jerusalem or Rome Rail Automobile and Coach Travel Changes in the technology of travel have had widespread implications for society in the United States Rail travel influenced the building of towns and cities caused hotels to be built near rail depots and opened up the West Auto travel produced the motel and a network of highways Traveling by Train One of the main factors that led to railroads in the US was the need to move goods and people from one region of the country to another The train made mass travel possible for everyone Cars and buses caused a decline in rail travel 0 Facing a possible collapse of passenger rail services Congress passed the Rail Passenger Service Act in 1970 amended in 2001 Rail Travel Abroad Taking the train makes good sense in densely populated areas such as those in Western Europe and parts of Asia and highspeed networks are already well developed often drawing most of the traffic that formerly went by an o Several European nations have banded together to offer non European visitors unlimited first class rail service for a reduced lump sum Traveling by Car Began in 1895 in Germany Today it is the American way of life Largest segment of ground transportation Creates accessibility to remote locations Rental Cars 5000 rental companies in the US 75 of car rentals take place at airports The top five rental car company agencies in the nited are Hertz lEnterprigiise NationaL Traveling by Bus Convenient and economic mode of travel Allows travelers to relax and enjoy the ride Types of bus service Local charter tour commuter airport urban and rapid transit The largest and most recognized is the Gray Line Airlines An integral factor in travel and tourism 5500 planes are in the air over the US any day Competition between airlines to provide lower fairs has had a significant impact on increased air travel Travelers are paying less but carriers are spending more on fuel and other costs cutbacks and layoffs Projected travel 1 lbiillfin 20125 Airlines Airline alliances will allow them access to each other s feeder markets and to resources that will enable them to flourish in what will ultimately be a worldwide deregulation A feeder market is a market that provides the source in this case passengers for the particular des na on The Hub and Spoke System Enables passengers to travel from one smaller city to another smaller city via a hub or even two hubs The hubandspoke system has two main benefits Airlines can service more cities at a lower cost Airlines can maximize passenger loads from small cities thereby saving fuel HubandSpoke System Figure 92 Naslwille Knoxville Wichita Falls Dallas Huntsville Al Lubbock College StationBryan New Airplanes Boeing s first new airplane model in several years the Dreamliner 787 takes advantage of huge advances made in aviation technology ls capable of flying long haul routes using up to 20 percent less fuel Up to 50 percent of the primary structure of the plane including the fuselage and wing is made of components such as carbon fiber which reduces the weight of the plane New Airplanes Able to fly up to 9700 miles without refueling the Boeing 787 Dreamliner could easily manage a flight between New York and Moscow Manila or Sao Paulo or between Boston and Athens Richard Aboulafia chief analyst with Teal Group comments If you look at it from an airline standpoint you don t have a choice If you don t have a 787class aircraft and your competitor does he can under price you and outprofit you Components of Airline Profit and Loss Fixed costs do not change Lease of airplanes the maintenance of airlineowned or leased terminals interest on borrowed money insurance and pensions Variable costs rise and fall Wages and salaries advertising and promotion fuel costs passenger food and drink and landing fees The biggest single cost for airline operation is labor which is typically 30 45 of total operating costs o A key statistic in analyzing profitability is the load factor percent of seats filled on all flights including planes being flown empty to be in position for the next day s schedule Cruise Ships The cruise market has increased dramatically in recent years About 9 million Americans cruise each year Rates vary from about 95 85O per person per day Carnival Cruise Lines is the most nancially successful netting about 20 of sales Cruise Ships Most cruise ships sail under foreign flags because they were built abroad for the following reasons US labor costs for ships officers and crew in addition to maritime unions are too high to compete in the world market US ships are not permitted to operate casinotype gambling Many foreign shipyards are government subsidized to keep workers employed thereby lowering con struction costs Cruise Market Mass market Consists of people with incomes in the 35000 74000 range average cost per person is 95 195 per day Middle market Consists of people with incomes in the 75000 99000 range average cost per person is 175 350 per day Luxury market Consists of people with incomes higher than 100000 average cost per person is more than 400 per day The Economic Impact of Tourism International travelers spend 94 billion in travel in US 100 billion generated in tax receipts 597 million international travelers visit the US each year Tourism industry represents 1 in 10jobs generated The Multiplier Effect When a tourist spends money to travel to stay in a hotel or to eat in a restaurant that money is recycled by those businesses to purchase more goods thereby generating further use of the money In addition employees of businesses who serve tourists spend a higher proportion of their money locally on various goods and services Multiplier Effect Figure 94 S Inppllcr and 3 Well ID suppurt amt prLWId urnnduuurm and sswuws Others in the community reaeive and spend on related products and services and so on Promoters of Tourism National Tourism Organization NTO Travel Industry of America TIA State Offices of Tourism CityLevel Offices of Tourism Convention amp Visitors Bureaus CVBs National Offices of Tourism NOT s Pacific Area Travel Association PATA Tour operators Travel agencies Travel corporations Tour Wholesalers and Consolidators Desti nsti n management co mlpslnries Business Travel Business travel has declined due to the general economic climate In addition increases in airfares incidences in terrorism and businesses reducing their travel budgets have negatively affected business travel Business travelers tend to be younger spend more money travel further however they do not stay as long as leisure travelers Social and Cultural Impact of Tourism Tourism can have both positive and negative impacts on communities World tourism organizations recognize that tourism is a means of enhancing international understanding peace prosperity and universal respect for and observance of human rights and fundamental freedom for all Provided the number of tourists is manageable and they respect the host community s sociocultural norms and values tourism provides an opportunity for social interactions Ecotourism Ecotourism is focused more on individual values it is tourism with a conscience Those who implement and participate in ecotourism activities should follow the following principles Minimize impact Build environmental and cultural awareness and respect Provide positive experiences for both visitors and hosts Provide direct financial benefits for conservation Provide financial benefits and empowerment for local people Raise sensitivity to host countriesquot political environmental and social climate international rights and 3be reements Ecotourism Generally most ecotourism destinations are located in underdeveloped and developing countries Ecotourism projects tend to be developed on a small scale They are kept small in order to allow more in depth39 tours and educational opportunities Sustainable Ecotourism According to the UNVVTO definition sustainable tourism refers to the environmental economic and sociocultural aspects of tourism development with the establishment of a suitable balance between these three dimensions to guarantee its longterm sustainability The increasing number of tourists visiting destinations has heightened concerns about the environment physical resources of the place ocultural degradation Sustainable Tourism Places a broad obligation on society Sustainable tourism should a Make optimal use of environmental resources that constitute a key element in tourism development b Respect the sociocultural authenticity of host communities conserve their built and living cultural heritage and traditional values and contribute to intercultural understanding and tolerance c Ensure viable long term economic operations Cultural Heritage Nature and Volunteer Tourism Culture and heritage are our legacies from the past what we live with today and what we pass on to future generations Our cultures and natural heritages are irreplaceable sources of life and inspiration UNESCO has designated a number of World Heritage Sites worthy of protection and preservation because of the outstanding value to humanity of their natural and cultural heritage There are 19 sites within the Cultural Heritage Nature and Volunteer Tourism Cultural tourism Motivated by interest in cultural events Heritage tourism Motivated by historic preservation Nature tourism Motivated by nature Culinary tourism Culinary adventures are at least a contributing motivation Volunteer tourism Motivations include opportunity to travel safely and cheaply and to experience different cultures Trends Ecotourism sustainable tourism and heritage tourism will continue to grow Tourist arrivals will continue to increase Governments will increasingly recognize the importance of tourism More bilateral treaties signed The promotion and development of tourism will move more from the public sector government to the private sector involved industry segments Technology will continue to advance Marketing partnerships and corporate alliances will increase Employment prospects will continue to improve Ticketless air travel will continue to increase Trends Ticketless air travel will continue to rise Increased Internet bookings Managing destinations will continue to be a challenge Low cost nofrills airlines will continue to gain market share Airlines will entice travelers to book trips via the airline s website Automatic airport checkins will become more popular Cruise industry will continue to expand Increase in alternative cruises increased concernforthe health and safety of travel and tourism d culinary volunteer tourism will increase The End Summary Notes Chapter 10 Managed Services Continuing with the theme of food amp beverage this is the last section this vast industry I want to start out by saying don t simply exclude food amp beverage operations as a career path There are many paths that can be quite lucrative This chapter discusses contract services or managed services Very rarely they may be called institutional food service The textbook authors maintain the name as managed services What this means is that there are companies who provide food services for businesses or organizations where food service is not THEIR primary business For example Chartwells provides all the food amp beverage operations on FAU s campuses because FAU is an institution of higher education and does not want to get into the business of food service Chartwells by the way offers a high number of oncampus jobs related to food service that pay quite well lfinterested please let me know Check out their corporate website at wwweatlearnlivecom and jobs at wwwchartwells39obscom If you wind up working for a managed services company you have two clients to satisfy the company or organization that hired you AND the people consuming your products So you re meeting the needs and wants of both the guests AND the institution In many instances the guests are captive and have no other choices At FAU for example you may eat at Dunkin Donuts or get coffee at Starbucks but Chartwells is the company who purchased those franchises or license agreements and whose staff is employed there The text says that many managed operations are housed in host organizations that do not have foodservice as their primary business I would say that in reality it s most operate in such organizations Managed service operations usually deal with very large quantities and very large operations They operate in a high volume atmosphere quite frequently Again as an example picture ALL the foodservice options and activities at FAU during the peak fall and spring semesters Airlines and Airports Managed services often operate the food amp beverage concessions at airports Again you may think you re going to McDonald s or T G l Friday s and you are but these are probably all run by a managed services company in the background Managed services companies are also involved in food amp beverage served on airplanes A few decades back airlines used to compete with one another based on their service and cuisine and in ight dining Those days are pretty much gone in the United States however on international carriers often called foreign flag carries the service and cuisine are usually still very high quality In the United States airlines now consider food amp beverage a cost item and work to keep costs down Fliers have mandated that what they seek are low fares not good food amp drink in the sky As airlines have cut back on food though travelers still need to eat so airports have picked up on their variety of food offerings and the number of chain restaurants now seen across airports At the Fort LauderdaleHollywood International airport for example there are several restaurants vending machines grab amp go coffee type places hot dog kiosks etc These are a operated by a managed services company in the background Managed services companies bid for these large opportunities against others At FAU Chartwells has a 20year contract at least that s what I ve heard The biggest managed services companies are ARAMARK often listed as the best place to start a career AND a top 100 company to work for Sodexo and Chartwells Check out their web sites and you ll be amazed at the job opportunities these types of companies provide We had a few former students work the food service at the Olympics a few years back on contract through ARAMARK They served the guests the athletes the workers and the locals in Olympic Village wwwaramarkcom wwwsodexousa com Military The military protects us as citizens They are not in the business of foodservice As such they usually hired managed services companies to provide their food service There are many many types of food from those who live on base and have restaurants to highlevel officers clubs where gourmet meals are served to entertain dignitaries to the actual troops out in the desert who need packaged foods that can last and survive under excruciating conditions The military food service business is estimated to be worth over 6 billion per year Many students have had successful careers as civilians working on bases in officers clubs or other food amp beverage venues and they get to move around and see the world without having to enlist Just like college campuses and airports there are tends toward casual dining and more chain restaurants on bases along with quick service familiar brands Elementary and Secondary Schools Again schools are not in the business of feeding the students so managed services companies come in The National School Lunch Act of 1946 stated that if kids ate better the military would get betterstronger recruits And this food program could use all that farmers were producing adequately Since then the school lunch program has survived across the United States At the time of the textbook writing the federal government funded 219 per student for a lunch Much work continues to go into studies on nutrition and providing students with a balanced meal in the K 1 2 systems There is ongoing debate as to whether or not fast food restaurants should be on campus if vending machines should have candy or sody etc Oh by the way when talk about managed services companies they also own and operate the vending machines when they take over airports colleges office buildings schools etc Just think ofall the money FAU makesjust on the vending machines alone Colleges and Universities It makes perfect sense that since they operate in the K12 systems they ll also be around on college campuses College campuses are a mainstay for managed services companies They do food in residence halls vending machines stadiums special events catered affairs for the president s office faculty lounges fraternity and sorority events and so on and so forth They often run convenience stores chain restaurantsbrands and have a meal plan card program Meal plans are somewhat waning in popularity unless they are exible and have a debit card style program where it s reduced as you use it Not a use it or lose it where you get one punch for lunch and one for dinner and if you don t eat them you lose them On campuses just like elsewhere the popular trend is for namebrand establishments and offerings to keep students buying and staying ON campus Other types of facilities where you ll nd managed care operations include Healthcare Facilities They do both the cafeteria line for hospital visitors AND the cyclical menus that are offered to patients And they may have to be exible to even do gourmet banquets for physicians orthe CEO Beyond hospitals we nd managed services in assisted living facilities nursing homes Hospice and everything in between In a hospital the main focus is on the tray line where most patrons visit the cafeteria The company may also operate a coffee shop vending machines etc Business amp Industry This one sometimes confuses students Aren t managed services companies businesses Yes they are But sometimes they are hired BY COMPANIES to operate the food service at their corporate of ces ie Of ce Depot GEICO ExxonMobil etc Say your company has 1000 employees in its large corporate office then You will need onsite food service ranging from lunch vending machines dinner for those who work late cafeteria catering for entertaining highend clients box lunches for working meetings and everything in between Most companies do not selfoperate their own food service Again Office Depot is NOT in the foodservice business Instead they contract out to a managed services company quite frequently About 80 ofthe companies that have foodservice on site use contracted managed services providers Leisure amp Recreation Managed services are the ones behind the scene serving you those expensive hot dogs and pretzels at Yankees stadium at the Panthers games and a Dolphins game And so on and so forth Managed services operate in arenas stadiums theme parks national parks state parks zoo aquariums etc Sometimes entire theme parks will NOT be in the business of runningoperating their own food service offerings to visitors ie Sea WorldBusch Gardens In other cases like Walt Disney World the company WILL run its own operations and will not used a managed services company For those who like sports concerts and the like working for a managed services company IN an arena or stadium facility can get you exposure to facilities management There are fun careers in this area And while you re working you usually get to see the eventsconcerts Check out the Florida Facilities Managers Association at wwwfloridafacilitiescom A very lucrative component to these operations are the sky boxes suites and super boxes And the good ole American hot dog contributes a lot to the bottom line tool Trends in Managed Services Operations Many of the companies are diversi ed so that they also provide uniforms cleaning services dry cleaning etc in addition to their food amp beverage services There is an increase on college campuses to have to go foodsquot or grab amp go foods available as well as brand name restaurants and facilities There is a declining enrollment in traditional meal plan programs instead students opt for debitcard style pay as you consume type programs Many managed service operations are required to have some 24hour facilities where they operate At Broward General Hospital in Ft Lauderdale for example they have the country s rst 24hour Starbucks Several managed services companies are also creating a home meal replacement option in several locations For those who are working late or dualearner couples if a cafeteria has high quality food to go this food can replace what you d cook at home and buy in a supermarket lt s convenient for the end user AND it helps the managed services companies increase their pro tability Fresh produce organic produce healthier options casual diningall these too are trends in Managed Services Please check out the jobscareers offered at Sodexo Chartwells and Aramark You ll be amazed at the sheer number of openings worldwide CHAPTER 16 SUMMARY BOOK NOTES Chapter 16 focuses on another section of meeting amp events planning speci cally what happens in special events Previously we called these types of people meeting planners More recently we ve diversified and realize that not everyone is planning a meeting some people plan special events So now you ll hear the term event planning used almost more frequently Event planning is a general term that refers to the career path of those who primarily plan events festivals weddings mitzvahs sporting events parades conventions conferences etc The title event planner as stated above is fairly new and was introduced by large hotels and convention centers to replace meeting planners when appropriate Event planners are responsible for Planning the event from start to nish concept design layout style d cor choosing a venue staf ng etc Advertising and marketing of the event so that attendance is suf cient Arranging for speakers lighting stage design and you name it In order to be an effect event planner you must be detail oriented but able to multi task have good human relations skills be able to conceptualize so you can see the nished product in your head etc You need a variety of skills and talents for this type of role Some events must pay for themselves so event planners are very involved in advertising and marketing ofthe event We often look for sponsors so that these companies or individuals can have their names on our collateral our menus on banners throughout the convention center etc By sponsoring a part ofthe event or a dinner within the event this helps us with costs Say an event planner is planning a Home Show in Palm Beach he or she will need to make sure that there are enough attendees paying admission enough exhibitors purchasing trade show displays etc so that all costs are covered Sponsorships help bring in more money for the events and give these organizations the ability to promote their business names and their products Event planners also need knowledge of contracts The contracts that you will sign with major arenas stadiums convention centers hotels or conference centers can be very tedious to read highly detailed and have a lot of legaleze Those of you who will minor or major in hospitality management at FAU can take both a hospitality law class and a meetings amp events class HFT 3603 and HFT 3741 When planning an event the rst step is to research the goals and objectives ofthe meeting Then design a plan for the event including budgeting how you re going to get attendance layout setup venue etc You then plan and coordinate the event And aftenNard you evaluate its success by following up with attendees and exhibitors to see how they rated the effectiveness ofthe event During the research stage the planner asks questions such as Why should the event be held Who should hold it or organize it Where should it be held What do we want the attendees to learnexperience by attending this event What outcomes will we expect after the event During the design stage the event planner is free to look at venues analyze different d cor arrangements look at different unique styles of setting up the event different climatestimes of year etc The planner designs the event around the expectations and outcomes decided during the research stage in order to make the event successful During the planning stage the craziness and busyness takes over The event planner handles a million and one things including Budgeting Choosing the actual venue Choosing accommodations for those who stay overnight if applicable Making transportation arrangements on the ground for those who arrive Making transportation by air or other means for those coming in from elsewhere Arranging catering and audio visual Arranging entertainment and speakers Hiring parttime staff to work the event for registration and other needs Negotiating pricing and reviewing contractssigning contracts Preparing collateral for the meeting brochure program directory creating a web site or other means for registration and to help market the program During the actual coordination of the event the planner is on site usually 247 and this is the actual working ofthe event You re there to put out any firesthat arise help staff and attendees with lastminute changes or issues deal with unforeseen problems etc You need to be able to think on your feel and make decisions quickly and con dently in this role Lastly we enter the evaluation stage where we measure the success of each stage of the event was the venue good was the contract clear for what we needed were the attendees happy was the price fair and so on and so on and so on It s good to have an idea of every possible measure to see how successful you really were AND to help you plan for the next time the event is held Every event planner I ve met says they re biggest challenges are time management budget not being large enough for what they would really like to do compared to what they re able to do and it s difficult to find reliable people to work your events whether they be photographers registration assistants booth designers etc Once you have a network ofreliable people it makes event planning that much better There are many types of events that people can plan Some of the common classifications are Corporate Events companies will hold events of all types stockholder meetings new product launch parties training sessions with dinners and speakers etc There was a tendency for corporations to do a lot of incentive travel events where people were recognized for their outstanding performance with a trip to a fun destination and lavish reward trip But with the recession there are not as many lavish spoiling types of events as of late Association Events there s an association for almost every possible group you can think of Associations are required to have meetings regularly and once a year they usually have a big conference and annual event with speakers training sessions food amp beverage functions and the like Some of these are very large and are planned several years in advance For example the American Medical Association might have an annual conference and related sessions and events within the conference for 20000 attendees Charity Balls amp Fundraisers There are many events in the community to assist in raising funds for various needs In these types of events it s extrastressful on the planner because all the money raised it meant to go to the charity 80 there is a large focus on getting sponsorships and donations to offset the cost of the event By selling tickets at a higherthanusual price doing auctions and getting sponsorships it s more like the event planner is a fundraiser than an event planner in many ofthese instances It s a great feeling to go to a fabulous fundraiser have a great dinner and learn that 50000 was raise for diabetes AIDS student scholarships or some other worthy cause Fundraisingcharity event planning takes a special type of caring diligent hardworking person but the personal rewards of raising money for a worthy cause outweigh the hard work in many cases Social Functions This area includes the highest number of event planners These functions would be weddings birthday parties graduations retirements engagement parties bachelorbachelorette parties divorce parties holiday functions SMERF functions Social Military Education amp Religious such as a military reunion high school reunion etc Fairs and Festivals There is also a small niche area for event planners dealing with recurring fairs and festivals Medeival Fairs music concerts and fairs etc The purpose of most fairs in the United States was originally on agriculture It s still very common to go to an art fair but also have many varieties of food kiosks and food amp beverage offerings A festival on the other hand are planned events that are usually themed for a celebration of some type The annual Hot Air Balloon festivals are very popular wwwhotairballooncom as well as many music festivals like the Ultra Music Festival wwwultramusicfestivalcom Concerts amp Sporting Events The textbook somewhat differentiates concerts amp events from fairs and festivals because they are usually onetime or more limited whereas fairs and festivals usually recur on a periodic basis annually biannually etc Many concerts are also planned as fundraisers The half time or opening ceremonies at large sporting events are another huge area for special event planners Tremendous work and detail go into the planning of these large extravagant events and activities Some of the sporting events are megaevents like The Olympics The World Cup The Super Bowl The Masters The US Open the Indy 500 etc To be an effective and capable event manager one should possess strong skills in these areas Leadership Multitasking Detail orientation details details details Ability to negotiate fairly and smoothly for win win outcomes Good at budgeting Able to make con dent decisions Ability to change course at a moment s time without being frazzled Knowledge of contracts and their legal content Ability to read legal contracts Enthusiasm Ability to lead and mentor others toward a common goal For those ofyou seriously interested in special events I encourage you to explore two organizations One is ISES the International Special Events Society It s an organization made up of special event planners They do have a student membership and they have a South Florida chapter Their web site forthe international organization is wwwisescom And the South Florida chapter site is wwwisess ccom Another organization is the International Festivals amp Events Association Their web site is wwwifeacom For general meeting planners that also includes event planners MANY studentsjoin the overall organization for meeting industry professionals That organization is MPI Meeting Professionals International Their main web site is wwwmpiweborg and their South Florida chapter web site is wwwsfmpiorg The rst two above ISES and lFEA are both speci c to event planners whereas MPI deals with anything related to meetings amp events so it includes meeting amp corporate planners association planners as well as event planners Many planners utilize the resources of a DMO destination marketing organization which is an organization that helps you gather information about a specific destination hotel availability and styles what venues are there for parties or offsite activities what s the climate what restaurants are available etc In the meeting amp events class we look more closely at the DMOs A specific type of a DMO is a Convention amp Visitors Bureau CVB In South Florida we have three CVBs Palm Beach Ft Lauderdale and Miami all available to assist meeting w leisure travelers with information on coming ot the destination These organizations encourage groups to hold meetings or event in their city and to bring in the revenues and tax dollars associated with these events They assist groups with meeting preparations and destination information but they do not actually plan the meetings or events for you How do you start getting your feet wet in the field of event planning My suggestion is to work as a coordinator or other entrylevel role in any ofthe following Hotel catering amp sales office A DMC Destination Management Company A CVB convention amp visitors bureau Any other type of DMO Destination Marketing Organization For a large company that employs meeting amp event planners on staff In the convention services department ofa large hotel ie The Breakers the Boca Raton Resort amp Club the Westin Diplomat the Loews Miami Beach etc For a meetings amp events company that organizes events as an intern DESTINATION MARKETING 0 CHAPTER 14 x if 3 0 What is Destination Marketing 0 What is a Destination Marketing Organization DMO Why do they exist 0 Destination Marketing Organization DMO Q 0 Usually a notforpro t type of organization 0 Funded by occupancy taxes government subsidies membership fees private donations or any combination of these 0 Exist to represent promote and advertise a speci c destination to increase visitation by leisure travelers corporate travelers and conference meeting attendees o Primarily exist to help enhance economic vitality of destination through increased tax revenues employment commerce and other activity associated with tourism TERMS Destination Marketing Organization DM O Convention amp Visitors Bureau CVB o Other variations are VCB CVA etc o The rst was founded in 1896 Detroit Metro CVB 0 FACVB o wwwfacv 0 0 DMAI o Formerly known as the International Association of Convention amp Visitors Bureaus MCVB o 4 uiLIIu dLii a v o Locally 0 Greater Ft Lauderdale CV B WWWSIlIlIlOI39g 0 Greater Miami CV B wwwmiamiandbeachescom 0 Palm Beach County CV B www9a1mbeach com o CVBs often operate visitor informatlon centers 77 0 Convention center facilities are not normally operated by CVB Las Vegas is major exception is o CVBs serve an average 0f just under 14000 rooms 0 A large portion of most room revenue taxes are passed to CVB over 55 CVBs s end normally 40 50 0 their budget specifically on advertising marketing eCommerce and other methods of promotion Most convention centers are governmentowned 87 DMOs do not actually plan the conferences or book the vacations They greatly assist meeting planners with trip preparation venue selection transportation and registration recommendations etc 0 Most of their services are free to the meeting event planner or visitor They often serve as a one stop shop for visitor information 0 They attempt offer unbiased current reliable information O Myth 1 o DMOs are only good for meeting planners Myth 2 o DMOs only book meeting space or conventions Myth 3 o DMOs are expensive to use Myth 4 o DMOs only work with very large groups Myth 5 o DM0s own and run the convention centers so they ll be blased and profitorlented Myth 6 o DMOs are only found in very large popular destinations wwwvisitgainesvillecom wwwhe1engaorg The DMO can assist planners in many manners and areas of their conference planning 0 The DMO can provide planners with detailed references 0 By working with DMAI they can garner excellent history on group booking patterns credit duringconference events etc to share with the planner The DMO can help greatly marketing the program or conference to the attendees The DMO acts as a liaison between the planner and community officials Other DMOS Q 0 State Tourism Agencies 0 wwwvisitfloridacom o wwwvisitcaliforniacom o wwwarkansascom 0 National Tourism Agencies 0 US Travel Association wwwustravelogg o wwwvisitnepalcom Activities of a DMO 1 0 Site Review Process 0 Determines needs and helps analyze viable sites 0 Gathers information to match client s needs 0 Provides specific information on viable venues 0 Checks ava ability of the city for various dates 0 Helps with speci c knowledge of various meeting room layouts issues and nuances Help with the Request for Proposal RFP or Lead process 0 Streamline process with pre set parameters 0 DMO helps circulate information and act as clearinghouse 0 He s the planner with city codes regulations permits an other necessary components of a large meetlng or conference Activities of a EllMl 2 Can reatly assist with a housing bureau for hote reservatlons o This also ma include onsite registration distribution of welcome pac ets advance mailings of destination Informatlon etc 0 Coordinate entertainment re security and or pollce protectlon for h1gh level guest speakers VIPs and entertainers Include special event planning components un1que to the c1ty o Streetside dinearound VIP meetings with city of cials welcome letters from the mayor or governor DMAI Q 0 Offers a huge variety of client bene ts 0 MINT the Meeting Industry Network 0 www0f cialTravelGuidecom o myDMAI peertopeer engagement 0 Destinations Showcase 0 Online RFP Process 0 DMAI Career Center annual wage surveys o Certi cations PDM amp CDMEAccreditation DMAP 0 Check out the Frequently Asked Questions FAQs page on their web site at h 1 destinationmarketin id 10 o DMAI represents over 1300 destination marketing organizations in 70 countries All effective event planners and savvy individual travelers realize the bene ts of using the resources of DMOs From the humble beginnings in Detroit of a CVB the DMO industry has emerged to a professional sophisticated resource for global travelers o DMOs are now involved in every aspect of their destinations DMOs can greatly enhance the meeting or tourism experience for those visiting the destination Meetings Conventions and Expositions Chapter 15 ALWAYS LEARNING Development of the Industry People have gathered to attend meetings conventions and expositions since the ancient times Mainly for social sporting political or religious purposes Development of the Industry Associations go back many centuries to the Middle Ages and before The guilds in Europe were created during the Middle Ages to secure proper wages and maintain work standards Associations began in the United States at the beginning of the eighteenth century when Rhode Island candle makers organized themselves Development of the Industry Meetings incentive travel conventions and exhibitions MICE represent a segment of the tourism industry that has grown in recent years MICE tourists spend about twice the amount of money that other tourists spend Size and Scope of the Industry According to the American Society of Association Executives ASAE there are about 90908 trade and professional associations Associations spend billions holding thousands of Ameetings and conventions that attract millions of attendees Size and Scope of the Industry Associations are the main independent political force for industries such as hospitality offering the following benefits Governmentalpolitical voice Marketing avenues Education Member services Networking Key Players in the Industry The major players in the convention industry are convention and visitors bureaus CVBs meeting planners and their clients the convention centers specialized services and exhibitions CVB s are major participants in the meetings conventions and expositions market The IACVB describes a CVB as a not for profit umbrella organization that represents an urban area and that tries to solicit business or pleasure seeiking visito Key Players in the Industry Enhance the image of tourism in the localcity area Market the area and encourage people to visit and stay longer Encourages associations and others to hold meetings conventions and trade shows in the area it represents Assists associations and others with preparations and lends support Encourages tourists to partake of the historic cultural and recreational opportunities the city or area has to offer Key Players in the Industry Primary outcome of the bureau is to generate and increase revenues of a city A number of bureaus have offices or representatives in many cities or a sales team to make followup visits to the leads generated in trade shows The sales manager will invite the meeting convention or exposition organizer to make a familiarization FAN trip for a site inspection Key Players in the Industry Convention Center Utilization Figure 121 Convention Center Utilization by Market Sector 1 l Gavern me ntl Social Service 5 Exposition Trade Shows 8 Educational 7 Frate mail and quotSocial 19 Others 5 Religious Destination Management Companies Service organizations within the visitor industry that offers a host of programs and services to meet clients needs 0 Initially a destination management sales manager concentrates on selling the destination to meeting planners and performance improvement companies incentive houses Destination Management Companies DMCs work closely with hotels sometimes a DMC books rooms and another time a hotel might request the DMC s expertise on organizing theme parties A DMC does everything including airport greetings transportation to the hotel VIP checkin arranging theme parties sponsoring programs organizing competitive sports events and so on depending on budget Meeting Planners May be independent contractors who contract out their services to both associations and corporations as the need arises or they may be fulltime employees of corporations or associations According to the International Convention Management Association ICMA about 212000 full and parttime meeting planners work in the United States Service Contractors The individual responsible for providing all of the services needed to run the facilities for a trade show Hired by the exposition show manager or association meeting planner The service contractor is a part of the facilities management team and to use the facility the sponsor must use its service contractor Types of Meetings Clinic Workshoptype educational experience in which attendees learn by doing Forum An assembly for the discussion of common concerns Seminar A lecture and a dialogue that allow participants to share experiences in a particular field Symposium An event at which a particular subject is discussed by experts and opinions are gathered Workshop A small group led by a facilitator or trainer Types of Meetings The purpose of a meeting is to affect behavior Meetings are set up according to the wishes of the client The three main types of meeting setups are Theatre style Large audience that does not need notes Classroom setup Meeting setup is instructional Workshop style Boardroom setup Small numbers of people Meeting takes around one block rectangular table Association Meetings Every year there are thousands of association meetings that spend millions of dollars sponsoring many types of meetings including regional special interest education and board meetings Things at the top of the list of places for an association meeting planner to choose from include the destination s availability of hotel and facilities ease of transportation distance from attendees transportation costs and food and beverage Conventions and Expositions Conventions are larger meetings with some form of exposition or trade show included The majority are held in large hotels over a 35 day period A number of associations have one or more conventions per year These conventions raise a large part of the association s budget Conventions and Expositions Expositions are events that bring together sellers of products and services at a location where they can show their products and services to a group of attendees at a convention or trade show Exhibitors are an essential component of the industry because they pay to exhibit their products to the attendees Types of Associations An association is an organized body that exhibits some variety of volunteer leadership structure which may employ an activity or purpose that the leadership shares in common The association is generally organized to promote and enhance that common interest activity or purpose Types of Associations The Middle Ages found associations in the form of guilds which were created to ensure proper wages were received and to maintain work standards Many of today39s associations have their roots in ancient times Trade association Professional association Medical and scientific association Religious organizations Government orga nizations Types of Meetings Annual meetings Board committee seminars and workshops professional and technical meetings Corporate meetings conventions and expositions Social military educational religious and fraternal groups SMERF Incentive meetings Meeting Planning Meeting planning includes not only the planning but also the successful holding of the meeting and the postmeeting evaluations Before a meeting planner can start planning a meeting a needs analysis is done to determine the purpose and desired outcome of a meeting Meeting Planning Needs analysis Premeeting Budget activities Request for Plan agenda proposa Set budget Site inspection Negotiate contracts Onsite activities Post meetings Selection Negotiation Contracts Contracts The contract is a legal document that binds two or more parties Essential elements Offer Consideration Acceptance Conference Event Order A conference event order has all the information necessary for all department employees to be able to refer to for details of the setup times and layout the conference itself arrival meal times what food and beverages are to be served and the cost of items so that the billing can be done Venues for Meetings Conventions and Expos City Centers Convention Centers Conference Centers Hotels and Resorts CruiseShips Colleges and Universities Sustainable Meetings Conventions and Expositions The meetings industry is becoming more responsible in its environmental stewardship and it makes economic sense to do so Companies that choose to do so are reporting higher gross margins higher return on sales higher return on assets and a stronger cash ow within its own organization Convention centers are going green by reducing th e h light and pwer consumption Trends More people are going abroad to attend meetings Some international shows do not travel very well ie agricultural machinery thus organizations such as Bleinheim amp Reed Exposition Group airlift components and create shows in other countries Competitiveness has increased among all destinations Convention centers Will expand and new centers Will come online o The industry needs to be more sophisticated the need for fiber optics is present everywhere Compared to a few years ago large conventions are not as well attended and regional conventions have more attendees The End FigsM everage gperatins ALWAYS LEARNING Food and Beverage Management The director of food and beverage reports to the general manager and is responsible for the efficient and effective operation of the following departments Kitchencateringbanquet Restaurantsroom serviceminibars Loungesbarsstewarding Food and Beverage Management The skills needed by a food and beverage director Exceeding guests expectations in food and beverage offerings and service Leadership Identifying trends Finding and keeping outstanding employees Training Motivation Budgeting Cost control Finding profit from all outlets Food amp Beverage Organization Chart Figure 41 Fund and Beverage Director Elmel39 Etmetulivu Ca39tmi n memm H t Beverage Manager Manmger 52 W i co M and 5111 Steward ElmI M 3m agm Cwaiivo BM Sew if 39 Ca phl39m Sq V Permm M mega Saw the F CiYIJK39F 511m erg Servers C il h menmhun Kitchen A hotel kitchen is under the charge of the executive chef or chef in smaller and medium sized properties Some executive chefs are called kitchen managers Controlling costs is an essential part of operations as labor costs represent the most significant variable costs staffing becomes an important factor Financial results are generally expressed in ratios such as food cost percentage and labor cost pe rce Kitchen Labor cost benchmarks are measured by coversperpersonhour or how many covers one person can producehandle in one hour Food cost percentage is expressed by dividing the food cost by food sales Labor cost is measured by dividing the cost of labor by food sales Food Operations Restaurant managers are generally responsible for the following Exceeding guest service expectations Hiring training and developing employees Setting and maintaining quality standards Marketing Banquets Coffee service lnroom dining minibars or the cocktail lounge Presenting a nnuall and forecasts to the food beve director Food Operations The number house count and type of hotel guest eg the number of conference attendees who may have separate dining arrangements should also be considered in estimating the number of expected restaurant guests for any meal This figure is known as the capture rate When COUpled with historic and banquet activity and hotel occupancy will be the restaurant s basis for forecasting the number of expected guests Bars The profit percentage on beverages is higher than it is on food items making bars an important revenue source The responsibilities of a bar manager include the following Supervising the ordering process and storage of wines Preparing a wine list Overseeing the staff Maintaining cost control Assisting guests with their wine selection Proper of Knv llesdgre of beers an cl liquors and Bars Bar efficiency is measured by the pourcost percentage Pour cost is obtained by dividing the cost of depleted inventory by sales over a period of time Food and beverage directors expect a pour cost between 16 24 Hotel bars are susceptible to the same problems as other bars All beverage service staff should receive training in responsible alcoholic beverage service Another risk bars encounter is pilferage The best way to prevent these occurrences is to have a good control system Which should include shoppers Bars In a large hotel there are several kinds of bars Lobby bars Restaurant bar Service bar Pool bars Minibars Nightclubs Sports bars Casino bars Catering and banquet bar Stewarding Department Responsibilities of Chief Steward Cleanliness of back of house Cleanliness of glassware china and cutlery Maintaining strict inventory control and monthly stock check Maintenance of dishwashing machines Inventory of chemical stock Sanitation Pest control Forecasting labor and cleaning supply needs Catering Department Catering Includes a variety of occasions when people may eat at varying times Banquets Refers to groups of people who eat together at one time and in one place Terms are used interchangeably Figure 42 Organization Chart for the Catering Department Damrim m Ca tori ng Exucmi W Cle Dirt ch39w m Salm l1 nnqmul an Catering Salas M manger Calming 50mm 311111qu Manamar phat Jaw ring ActJunk Execun 39nes Catering Mmmrd Banquet Cm sk ClllL TY J Hntnquul L lre d x39Caplmm Calming I Banqqu Bartendurs 5e er 17111 4311 Seniors Bunquul H uuwmnn Catering Department The director of catering DOC reports to the food and beverage director and is responsible for selling servicing catering banquets meetings and exhibitions The director of catering must be able to Sell conventions banquets and functions Lead a team of employees Make up departmental goals and objectives Set individual and department sales and cost budgets Set service standards Ensure that the catering department is properly maintained Be creative and knowledgeable about food wine and Service Be well versed in the dislikes and dietary restri of vario grou Catering Department For meetings a variety of room setups are available depending on a client s needs the most frequently selected meeting room setups are Theater style Classroom style Horseshoe style Figure 43 44 and 45 Seating Styles Auditorium Classroom Horseshoe Catering Event Order Also know as the banquet event order Prepared for each function to inform the client and hotel personnel about essential information to ensure a successful event Prepared based on correspondence with the client and notes taken during the property visits Catering Event Order The Catering Event Order also mentions the guaranteednumber policy This is the number of guests the hotel will prepare to serve and will charge accordingly The guaranteed number is given about seven days prior to the event The hotel will usually prepare about 3 5 additional meals to cover extra attendees Catering Coordinator Manages the office and controlling the function diary now on the computer Must see that the contracts are correctly prepared and checks on numerous lastminute details Operates webenabled technology tools such as Newmarket International s Delphi System Catering Services Manager CSM Duties include Directing the service of all functions Supervising the catering house persons Scheduling the banquet captains and approving staffing Cooperating with the banquet chef to check menus and service arrangements Checking that the client is satisfied Checking lastminute details Making out client bills immediately after the function Adhering to all hotel policies and procedures Calculating and distributing the gratuity and service charges Coordinating the special requirements with the DOC and catering coordinator Room ServicelnRoom Dining 56 of all properties offer room service and 75 of airport properties provide room service Generally the larger the hotel and higher the room rate the more likely they will offer room service Challenges include Delivering orders on time especially breakfast Making room service profitableforecasting demand Avoiding complaints of excessive charges Having welltrained and competent employees Sustainable Food and Beverage Operations Practicing sustainable food and beverage operations can and does lead to a better bottom line When operators save water and electricity recycle and purchase local produce they help lessen the footprint of the operation Guests are increasingly aware of the importance of sustainable operations of a food and Trends The use of branded restaurants instead of hotels operating their own restaurants Hotels opting not to offer food and beverage outlets Making outlets more casual Using themes for a restaurant Standardized menus Converting one beverage outlet into a sportsthemed bar Technology being used to enhance guest services and control costs lowecars menu or lowi The End F What is a Travel Agent According to Wikipedia of course not the best source A travel agency is a private retailer or 1 7quot public service that provides tourism related I services to the public on behalf of suppliers such as airlines car rentals cruise lines railways and package tours httpenwikipediaorgwikiTravel agency retrieved 10182012 F Travel Agency Highlights 0 Travel agents play an essential industry role especially online travel agents and agencies OTAs o Orbitz Travelocity Expedia et al o More than 50 of all travel is still booked by a travel J agent 0 Many OTAs do not have a physical location 0 Travel agents are appointed by suppliers to sell M i39 their productsservices most of these are informal 39 appointments except for the sale of airline tickets E o The Airlines Reporting Corporation ARC appoints travel agencies after submission of applications and L 4 a financial information F More ala on Agenls o lt 20 of all agencies hold ARC appointments yel lravel a encies slill book gt 0 of amine tickets 0 Travel agencies in groups are called consorliums and align together for beller ne olialion posilions Cruise Planners Virluoso elc o TAs no longer receive upfronl commissions from airline ticket sales 0 Errors and Omission Insurance prolecls travel agencies from malpraclice claims 0 Many states license sellers of travel FL is a leader in this What are the pros and cons of using or not using a travel agent for the consumer Do you use one CHAPTERS 1819 SUMMARY BOOK NOTES These are the summary notes for chapters 18 and 19 These are mostly selfhelp chapters and give you tips for a career in hospitality management Many of the tips can be equally useful for those of you entering other industries Recognize early on that career planning is a LIFELONG process It doesn tjust happen when you graduate from undergraduate or masters or doctoral programs ldentify your own personal interests and capabilities early on I STRONGLY RECOMMEND THAT YOU GO TO THE CAREER DEVELOPMENT CENTER AT FAU AND TAKE THE STRONG INTEREST INVENTORY SII ASSESSMENT It costs 1500 and is the best 1500 you ll spend It s an online assessment and it helps you greatly identify what industry segments career paths etc you should follow After you take the assessment you re provided time with a career counselor It is WELL worth it If interested please see the link within Blackboard for more information on the Strong lnterest Inventory Sll I would never steer you wrong For this very small investment you can take a career assessment to help you guide your future life in business One you have completed your personal assessment of yourself and really find out what you want to do then you have to narrow your choices So for our hospitality example once you gure out that yes I like the industry Yes l have the personality and skill set for it NEXT you have to identify the industry segment you think you d want to work in hotels restaurants cruise lines private country clubs theme parks event planning destination marketing organization etc After you identify the INDUSTRY SEGMENT then next you should shop around forthe TOP TEN EMPLOYERS in that segment and target them Who are the benchmark employers Benchmark are those that SET THE STANDARD for excellence in that particular segment Walt Disney World Southwest Airlines Ritz Carlton The Breakers Hyatt Mortons Steakhouse Darden Corporation etc Just remember that if you do not LIKE what you re doing you ll NEVER get successful because you ll be miserable In the working world we spend MOST OF OUR WAKING HOURS working or thinking about work or responding to emails and this and that If you don t like what you ll do you llbe MISERABLE Don t work in what you don t like In Chapter 20 there is a great power point slide you can print out and use for yourself It s titled EXPLORE YOUR PERSONAL INTERESTS I doubt many of you ifany have ever taken the time to do this It s kind of funny when I hear many of you speak to me you ve done so many hospitality things but had never considered it for a career Many ofyou are perfect hospitality industry types but don t know how to explain it You really need to do a selfassessment and identify what you like what you re good at and most important what makes you HAPPY and what you ENJOY There is a slide titled Tactics to Identify Career Alternatives Follow this walk through however I still thoroughly encourage you to take the Strong Inventory mentioned above at the FAU Career Development Center There are certain things that will lead to success in life in regards to work and business Make sure it s in harmony with what you like then work won t really feel like work Make sure the segment or company offers the career progression you re looking for if not then go as high as you can and start the career planning process again to get you to your stopping point I know many people who rise to a certain position have a comfortable living enjoy where they are geographically located have good 39 39 39 39 39 around them and then never want to move up again That is completely fine Make sure you move to a geographic location that you WANT to live in You can t be miserable and expect the job to make everything else better I ve seen students get offers in other states for example for 3000 more than where they want to live take the job and then they re miserable within a month or two If you don t like cold weather do NOT entertain a job in Minneapolis just because it sounds good Remember to include your TOTAL compensation not just the sala number Does the company pay for your benefits Are the benefits better than the other offer Does the company pay for your cell phone or dry cleaning Is the area cheaper to live than another Use the WWWSALARYCALCULATORCOM web site For example if you make 100000 in Fort Lauderdale you could live the SAME on 85000 in other places around the country Or if you make 100000 in New York City you d be living as if you were making 30000 in Fort Lauderdale These are just recent estimates these change rapidly and frequently Chapter 20 then just basically talks about your career planning and progression The important summary item here is that SO MANY OF YOU SPEND YEARS GOING TO COLLEGE AND STUDYING AND TAKING TESTS AND TAKING CLASSES BUT SPEND ALMOST ZERO TIME ON REAL CAREER PLANNING Make sure you spend some time planning on the most important decision you will probably make in a long time Chapter 21 talks about very similar issues Identify your choice of INDUSTRY ie hospitality management Then narrow in on the SEGMENT you want to work in Then narrow to the benchmark organizations and apply away As an example FAU student gets BBA degree with major in hospitality management and minor in international business Decides she wants to work in the restaurant industry 1St HOSPITALITY MANAGEMENT identi ed 2nd RESTAURANT SECTOR 3rd joins the National Restaurant Association as a student member starts networking starts reading trade journals Restaurant News Top Chef Magazine etc 4th Designs resume and gets interview training to make sure she interviews the BEST and can speak restaurant language during the interviews 5th Has narrowed down to several companies to go after forjobs Darden Corporation Mortons OutbackCarraba s TGI Friday s Ruth s Chris Rocco s Tacos Duffy s Sports Grilles Miller s Ale House Make sure you NETWORK That s how you will find jobs Former classmates FAU alumni the FAU Hospitality Management page on Facebook chamber of commerce meetings JOIN THE PROFESSIONAL ORGANIZATIONS listed in the beginning of your textbook and also found on our web site wwwbusinessfaueduhospitality There s a pdf file on the web site for professional organizations MOST ofthese have student memberships and their own job search engines for that specific niche Meeting Professionals International Hospitality Sales and Marketing Association American Hotel amp Lodging Association Women In Lodging Club Managers Association of America and so on and so forth Use the resources of oncampus Career Resource Center located in the college of business for business majors and minors and the campuswide Career Development Center When you graduate you ll wonder if it s better to work for a very large international company or for a small entrepreneurial company There are pros and cons to both Large companies offer great training resources usually more stability but not always better bene ts more opportunities for growth prestige with a brand name ie Disney compensation may be better legal protection often better than small companies etc The negatives ofa large company is that you re FAR REMOVED from senior executives you may never even meet the president or CEO you ll feel like a number with very restrictive job duties and descriptions you ll be doing a very narrow job a tiny sh in a big ocean syndrome Small companies offer the bene t of knowing almost all the employees easy access to senior people you might eat lunch with the owner every week you have a GREAT varieties of duties so you have to do it all which can be a challenge but you ll learn a lot more you have much less bureaucracy and often less politics than a larger company and if it s a GREAT small company it won t be small for long Some of the negatives of small companies are that they often have less structure and are more likely to NOT offer a managerintraining or managerindevelopment program they often pay less and are less stable they have fewer benefits and sometimes less opportunities to advance unless they grow and often they have little or not training You may be thrown to the wolves to do it all and fast and learn on the y When students ask me my opinion I say go to a bigger organization rst learn as much as you can on their dollar and then later go more entrepreneurial I personally went ot work for a small operation right out ofgraduate school and didn t like it at all mentally checked out and was red a short time later Then I went to a bigger organization and stayed over 4 years and was happier As far as standing out during the interview process Make sure your communication skills are great Dress professionally in the interview Turn off your electronic devices during the interviews Arrive at least 10 minutes early and ALWAYS be friendly to the receptionist Ask questions Make sure that you are warm welcoming and have great interpersonal skills Be enthusiastic Be prepared to know your top strength AND your worst weakness While the author in chapter 21 discusses academic major as a top concern of employers l have not seen this in reality unless you re going into a specialized eld In hospitality management we like diversity and often prefera hospitality management major or minor but I would love communications international business accounting finance marketing and a host of others Enjoy your job searchll I can t stress enough as l have throughout this semester the viability of a career in hospitality management There is a place in hospitality for EVERY major accountants marketing professionals eCommerce entrepreneurs International Business executives lawyers researchers everything And it continues to be the world s largest industry Recession or not 6 gure incomes are possible The negatives of our industry are the lower pays at the starting levels the long hours and the competition But the true dreams are out there to achieve in hospitality management Enjoy the rest ofyour semester and enjoy your career and life It s been a pleasure having you as a student ALWAYS LEARNING The Restaurant Business A place to relax and enjoy the company of family and friends and to restore energy As a society we spend about 475 of our food dollars away from home The word restaurant comes from the French word meaning restore Multibillion dollar business employing 128 million people Classical Cuisine North America gained most of its culinary legacy from France through 2 main events French Revolution in 1793 caused the best French chefs of the day to lose their employment because their bosses lost their heads Many chefs came to North America as a result In 1784 Thomas Jefferson spent five years as envoy to France and brought a French chef to the White House when he became president v MariAntoine Car me 1784 1833 is credited as the founder of classical cuisine August Escoffier 1846 1935 is also noted for contributions to cuisine Classical Cuisine There are five mother sauces B chamel Velout Espagnole tomato and hollandaise Nouvelle cuisine is a lighter cuisine and is based on simpler preparations with the aid of processors blenders and juicers using more natural flavors and ingredients Food Trends and Practices Chefs will need A strong culinary foundation Multioultural cooking skills and strong employability traits Additional management skills Culinary Practices To be a good cook one must understand the basic techniques and principles of cooking There are six skill areas that are important to becoming a successful chef cooking menu development sanitationsafety accounting computer training food trends and practices for the new millennium One of the most important things to learn about the industry is that you can t do it alone it s a team effort Developing a Restaurant The restaurant Operating philosophy represents the way the company does business Market is composed of those guests who will patronize the restaurant Concepts are created with guests in mind and should fit a definite market Location should also appeal to the target market Ambiance or theatmosphere that a restaurant creates has both Immediate consmous and unconSCIous effects on guests Operating Philosophy Mission Goals and Objectives The philosophy of the owner is the heart of the enterprise This represents the way the company does business It is an expression of the ethics morals and values by which the company operates Restaurant Market The market is composed of those guests who will patronize the restaurant A niche is a specific share or slot of a certain market The catchment area is a given radius or area where potential customers are could be a one or two block radius in a big city or a two or five mile radius in rural areas Restaurant Concept Successful concepts are created with guests in mind The concept represents the type of restaurant and clientele it is an impression or an image that appeals to certain markets casual children formal family ethnic etc o The restaurant business with the right location food atmosphere and service is going to get a good market share and make a good return on investment Restaurant Location The concept should fit the location and location fit the concept The location should appeal to the target market Rentlease costs should be between 5 and 8 percent of sales Some location criteria include demographics average income of catchment area zoning visibility accessibility parking city suburban etc Restaurant Ambiance The atmosphere that a restaurant creates has both immediate conscious and unconscious effects on guests The immediate conscious effect is how guests react to the ambiance The subconscious is affected by mood lighting furnishings and music Sustainable Restaurants The average American meal has a shockingly large carbon footprint usually travelling 1500 miles to the plate and emitting large amounts of 002 Each meal produces 275 pounds of waste a day making restaurants the worst aggressors of greenhouse gas emissions in retail history 39 Utility costs are a big line item for restaurants accounting for a median of between 243 percent and pie roe of sales Menu Planning The menu may be the most important ingredient in the restaurant s success There are six main types of menus A la carte menus items are individually priced Tabe d hdte menus a selection of one or more items for each course at a fixed price Du jour menus lists the items of the day Tourist menus used to attract tourists attention California menus are so named because in some California restaurants guests may order any item on the menu at any time of the day themselves Menu Planning The many considerations in menu planning include Needs and desires of guests Capabilities of cooks Equipment capacity and layout Consistency and availability of menu ingredients Price and pricing strategy cost and profitability Nutritional value Accuracy in menu Menu analysis contribution margin Menu design Menu engineering Chain menus Classifications of Restaurants There is not a single definition of restaurant classification Most experts agree there are two main categories independent and chain restaurants Other categories include fine dining quick service ethnic family dinner house occasion casual etc o Some restaurants may fall into more than one category For instance a restaurant can be both ethnic and quick service such as Taco Bell Classifications of Restaurants Individual restaurants are typically one or more owners who are usually involved in the dayto day operation of the business Chain restaurants comprise a group of restaurants each identical in market concept design service food and name Part of the marketing strategy is to remove uncertainty from the dining experience Fine Dining A fine dining restaurant is one where a good selection of menu items is offered at least fifteen or more different entrees cooked to order and nearly all the food being made on the premises from scratch or fresh ingredients Celebrity Restaurants Celebrities who may or may not have F amp B backgrounds own these operations The operations are designed to be entertaining drawing heavily on the notoriety of their owners Celebrity restaurants generally have an extra zing to thema winning combination of design atmosphere food and perhaps the thrill of an occasional visit by the owners Steak Houses The steak restaurant is still strong in spite of recent nutritional concerns To remain more competitive many operations are adding value priced items such as chicken or fish These items serve to attract more customers The upscale steak house like Morton s of Chicago Ruth Chris s and Houston s continue to attract the expense account and occasion diners Casual Dining and Dinner House Restaurants The types of restaurants that can be included in the casual dining restaurants category are midscale casual restaurants family restaurants ethnic restaurants theme and quick servicefastfood The trend in dinner house restaurants has been toward more casual dining Many dinner house restaurants have a casual eclectic decor that may promote a theme Family Restaurants Family restaurants evolved from coffee shop restaurants Many are individually or family operated Most often they offer an informal setting with a simple menu and service designed to please all of the family The lines separating the various restaurants and chains in the family segment are blurring as operators upscale their concepts Ethnic Restaurants The majority of ethnic restaurants are family owned and operated and sprang up to cater to tastes of various ethnic groups The fastest growing segment of ethnic restaurants is Mexican Theme Restaurants Many theme restaurants are a combination of a sophisticated specialty and several other types of restaurants They generally serve a limited menu but aim to wow the guest by the total experience People are attracted to theme restaurants because they offer a total experience and a social meeting place Quick ServiceFast Food This quickservice sector really drives the industry Quickservice or fastfood restaurants offer limited menus In an attempt to raise flat sales figures more quickservice restaurant QSR chains are using cobranding at stores and nontraditional locations including highway plazas and shOpping centers Hamburger The world s greatest fast food success story is undoubtedly McDonald s McDonald s story is amazing because it s larger than the next three megachains combined Burger King KFC and Pizza Hut McDonald s is now in 117 countries Each of the hamburger restaurant chains has a unique positioning strategy to attract their target markets Burger King hamburgers are flame broiled and Wendy s uses fresh patties Pizza The pizza segment continues to grow due to delivery services The segment continues to grow by marketing discounts and continuing its very successful delivery business Chicken Chicken has always been popular in part because it is inexpensive to prepare readily available versatile and perceived as a healthier alternative to burgers KFC dominates the chicken segment with a worldwide total of more than 15000 units Sandwich Restaurants Sandwich restaurants are a popular way for entrepreneurs to enter the restaurant business Subway is a particularly successful chain in this segment Part of its success may stem from the strategy of investing half of the chain s advertising dollars in national advertising Bakery Caf Headed up by Panera Bread with the mission of a loaf in every arm and the goal of making specialty bread available to consumers across the country Panera focuses on the art and craft of breadmaking Trends in Restaurant Business Demographics Branding Alternative outlets Globalization Diversification within various dining segments Shared locations More points of service o A new focus on Las Vegas The End The Job Search Your First Professional Position Chapter 19 Dismvem39ng Hospitalin and TounSm 2nd Ed ZOOS39EearsonEduca on Inc Industry OR Industry Segment OR Industry I Segment r V V r V V 7 Networking Alternatives Classmates lt31 Faculty members Campus recruiters School alumni Your family and friends 13931 4 I39ll Discovering Hospitality and Tourism 2nd Ed 2008 PearsbnEducation Inc 0 H e vjnemeier an Per 1ma H V H 7 WV 7 H r V Tnners dd5 River NT 07453 Iquot r V r V V V Research Sources for Career Information The Internet Professional and trade associations in the hospitality industry list provided in front of your custom textbook Trade publications Other written information Career centers Discovering Hospitality and Tourism 2nd Ed 2008 PearsonEducation Inc 0 H 3 NiDFm Pr and 13ml 7 7 Unner Saddle River NT074 R Myquot H 39 20 q Advantages of Large Companies Greater opportunities to advance and relocate Prestige associated with a name Less employment risk Compensation and benefits may be greater Legal protection Training is often more structured and effective Discovering Hospitality and Tourism 2nd Ed In 39 n PHI 7 a Urmer Saddle River NT074 R 120 Zquot 2008 PearsonEducation Inc 0 H 1nFmP1F1 an Disadvantages of Large Companies 9 Less control over one 5 work Some people believe that they are just a number in a larger organization 3 Less access to senior executives Discovering Hospitality and Tourism 2nd Ed 2008 PearsonEducation Inc 39 39 Per 1ma H Unmet Snddk River mousse 7 39 H Advantages of Small Companies Employees are likely to know each other Employees may have a greater variety of duties Executives in small companies tend to be approachable Employees may have more responsibility More companywide involvement Less bureaucracy The best small companies do not stay small Discovering Hospitality and Tourism 2nd Ed n no Ninemeier and Perm N V N V V V N V Unner Saddle River NT 07453 120 2008PearsonEducatio I O H DisadvantageiofSmallCoompan1es Limited benefits Smaller companies often provide less training an Fewer opportunities for promotions Discove ngHogpiIII tlizyand Tourism 2ndEd gZOOSQPSZESO Edm g f OHxv Lar e Com any Centralized personnel department Formal recruiting program coordinated by human resources personnel Standardized hiring procedures Retains r sum s on file for a specified period of time Interviews held off site with recruiters and then onsite with managers and supervisors Company literature available Employment commitment made long in advance of starting date Formal training programs Predetermined job categories and I pathways to advancement May have profile of successful employees and use personality testing to assess company fit will not employ if profile is not met Small Company No personnel department personnel issues handled by an operations manager No fulltime recruiters external recruitment activities are limited No standard hiring procedures Usually does not retain r sum s for lengthy time periods Interviews held with owner or immediate supervisor No printed literature Employment needs are more immediate On thejob training Jobs emerge to fit needs No profile available or used Adapted from Career Passport 200272003 Michigan State University Career Services and Place ment 2002 Preferred Candidates Will Possess Effective communication skills Computer aptitude Leadership and organization traits Teamwork abilities Interpersonal abilities a Personal accountability Enthusiasm enthusiastic personality Problemsolving and decisionmaking skills Discovering Hospitality and Tourism 2nd Ed n no NlT Fm m and p 39dm N or N Unner Saddle River NT 0745 2008PearsonEducatio I O H Candidate Characteristics Important to Employers Most Important A Academic major Internship experience Leadership experience Gradepoint average Basic computer skills Technical computer skills V Least Important Discovering Hospitalin and Tourixm 2nd Ed Disvoren39ng Hospitality and Tauz ixm 2nd Ed Memeiemnd 391 The Resume Cover Letter State the position for which you are applying and 14 how you learned about an opening or why you are contacting the company r Note special aspects of your background that will help you be an outstanding match fOr the position being applied for State factors that attracted you to this organization Indicate what action you desire such as an interview Provide a statement of appreciation for the reader s Discovering Hospitality and Tourism 2nd Ed Ninemeier and Perm N V N V V V N V consideration of your candidacy and information about how you can be contacted 2008 PearsonEducation Inc Unner Saddle Rivet NT 07453 O 13949 F9 quot pedal Events ALWAYS LEARNING What Event Planners Do Event planning is a general term that refers to a career path in the growing field of special events Its forecast includes a growing demand for current and future employment opportunities The title event planner was rst introduced at hotels and convention centers What Event Planners Do Person responsible for planning the event from start to finish Setting the date and location Advertising the event Providing refreshments Arranging catering speakers or entertainment There is variety of skills needed to be an effective planner Event Management Requires vision and leadermanager skills Key result areas Marketing Financial Operational Legal To gain business event managers prepare a proposal for the client s approval and contract ature Event Management Sponsorships are important in event management Sponsors provide money or inkind contributions and in return receive recognition including use or display of their logo s Sponsors expect something in return for their financial contribution Event Management Events can be costly In addition to advertising there is a location charge security costs labor costs and production costs Usually the event manager has a good estimate of the number of ticket sales expected Event Management Event management also takes place at convention centers and hotels where event managers handle all the arrangements after the sales manager has completed the contract The booking manager is critical to the success of the event by booking the correct space and working with the organizers to help them save money by allocating only the space really needed The Event Planning Process Figure131 The Event 39 39 DESI n I Planning Event Planning The first stage of event planning is the research stage and should answer the following ques ons Why should a special event be held Who should hold it Where should it be held What should be the focus of the event What outcomes are expected Second stage Design Allows freedom in creativity and the implementation of new ideas that support the objectives of the Event Planning Third Stage Planning Determine budget Selection of event site Selection of accommodations Travel arrangements Negotiate contracts Arranger catering Arrange entertainment speaker music Audiovisual needs quot Create marketing plan c Prepare invitations and event packets Event Planning Coordination This may be a stressful time due to unforeseen problems occurring or it may be a truly rewarding time with a flawless execution Involves decisionmaking skills and abilities as the event progresses Evaluation Should take place during each of the stages of the event planning process and is a final step that can measure the success ofquot the event in meeting the goals and actives Challenges and Tools for Event Planners and Managers Time management Financial management Technology Effective human resource management Classifications of Special Events Corporate events Annual meetings sales meetings new product launches training meetings and workshops management meetings press meetings incentive meetings and awards ceremonies Continues to lead the event business industry Association Events Range from a monthly luncheon to a yearly conven on Planned 2 5 years in advance Destination is the determining factor Classifications of Special Events Charity balls and fundraising events Unique opportunity for the event manager to work with the particular group or charity Normally a theme is chosen for the event Classifications of Special Events Social Functions Weddings engagement parties and holiday func ons Planners or managers work on a broad variety of events SMERF social military educational religious and fraternal organizations is a category of organizations that fall into the social events category Classifications of Special Events Fairs and Festivals Purpose of most fairs in the United States is usually related to the agriculture industry Festivals are planned events that are often themed to the celebration s purpose Classifications of Special Events Concerts and sporting events Many concerts are planned as fund raisers Opening ceremonies halftime and postgame shows for sporting events provide another arena for an event manager to select as a career path Classifications of Special Events Mega Sporting Events Mostly sporting events The Olympics The World Cup The Super Bowl The World Series The Masters The US Open The British Open US PGA Championship Required Skills and Abilities for Event Management Leadership skills Ability to communicate with other departments Delegating Project management skills Negotiation skills Coordinating and delegation skills Budgeting skills Ability to multitask 39 Enthusiasm Effective social skills Abili to torm contacts Special Event Organizations International Festivals and Events Association Provides fundraising and modern developmental ideas to the special events industry Certified Festival and Event Executive Training to enhance the level of festival management training Meeting Planners International Empowers meeting professionals to increase their strategic value through education clearly defined career pathways and business growth opportunities MPI Website Offers 2 programs 39 Certified Meeting Professional Certification in Meeting Management Special Event Organizations Hospitality Sales and Marketing Association International HSMAI is the largest and most active travel industry sales and marketing membership organization in the world with over 7000 members in 47 chapters from 12 countries HSMAl s mission is to be the leading source for sales and marketing information knowledge business development and networking for professionals in tourism travel and hospitality Special Event Organizations Local Convention and Visitors Bureaus Notforprofit organizations Primary functions Encourage groups to hold meetings conventions and trade shows in the city or area it represents Assist those groups with meeting preparations during the event Encourage tourists to visit the historic cultural and recreational opportunities the destination offers Sustainability in Special Events Britain has recently developed a system of standards for event management which highlights policies and procedures necessary to implement sustainability Event managers can use these standards as a benchmark for how to train employees on proper sustainable practices before during and after events Sustainable event tourism refers to the implementation of practices and procedures which help conserve both the natural environment and the special event space The Special Events Job Market Allow yourself to gain all the experience you can in the food and beverage aspect of the hospitality industry The next step is obtaining a sales position Laterally move to a catering sales position within a hotel The Special Events Job Market Now you can pursue several different angles A promotion to a convention service manager within a hotel Moving into offpremise catering as a sales consu ant Joining a production company Affiliating yourself with a destination management company DMC After another 2 years creating and selling your heart out you will be ready for the big leagues Trends The special event industry is forecasted to grow as clients want ever more spectacular events Events are increasingly more complex involving multimedia presentations elaborate staging and frequently upscale food and beverage service Technology presents both an opportunity and a challenge an opportunity in that it can facilitate event planning and management and a challenge in that new software programs must be mastered The End Introducing Hospitality Ghapter 1 ALWAYS LEARNING Hospitality through the ages The word hospitality comes from the French term hospice meaning to provide careshelter for travelers Ancient Times The Summarians after becoming successful farmers began other activities such as Writing Inventing money Creating pottery Making tools Producing beer Taverns provided a place for locals to relax and enjoy each other s company 0 Taverns an Inns bean sprining up allover Greece and Rome The Code of Hammurabi 1700 BCE was one of the first written documents imposing penalties for plotting crimes in Taverns The Code also imposed the death penalty for watering down the beer The Romans built lnns about 25 miles apart on all the main roads throughout the country The first business lunoh was the idea of a Roman tavern owner 4O Medieval Times Charlemagne established rest houses for pilgrims in the 8th century The stagecoach was popular in England with Inns and taverns located on the trail called post houses In the late 16th century eating places called an ordinary were taverns serving a fixedprice meal Coffee Houses Coffee houses began to spring up all over Europe during the 17th century The most famous was Cafe Florian on the Piazza San Marco which still operate today Coffee houses were the social and literary centers of their day The New World Ordinary s were common in the New World during the 1600 s Cole s Ordinary 1663 Hudson s House 1640 The Stadt House 1642 Frauncis Tavern where George Washington maintained his Revolutionary headquarters is still operating today John Adams the 2 President of the United owned a trim 173 to 1 The French Revolution The French Revolution changed the course of Culinary history as nearly all French chefs worked for the nobility As the nobility lost their titles and their property the chefs lost their jobs Many immigrated to the New World and found themselves in New Orleans a French enclave There they introduced sauces and other avorful dishes that supplanted the primitive cooking originating with the British The Nineteenth Century One of the first great cook books was Antoine Car me 39s La Cuisine Classique detailing numerous dishes and their sauces This was the beginning of the a la carte menu Auguste Escoffier published the classic recipe book Le Guide Culinaire and installed the brigade system in the kitchen Thirty five restaurants in New York City have celebrated their 100th anniversary The Twentieth Century There was a rapid development of hotels motels fast food and coffee shops after World War II The 1980 s saw hospitality travel and tourism expand as baby boomers influenced the industry through their buying power After 911 the economic recovery proved very strong as hospitality businesses expanded in North America and abroad Welcome to You the Future Hospitality Industry leaders Hospitality industry is an exciting place to be It s fascinating It s fun It offers competitive pay It offers advancement opportunities Career Paths Figure 11 Senlu lecllUVE Creamd Manager Dumas gt mmquot Manan 1 Diana Dewment Mamas 9am School Dmr mml V r A Amunle Mamqement Tlall39mg Plenum Uriaerslty Sandal Degree 1 Cnlcgnhmchlu 39 39 Degree Cumin Handy Paid nrd PanTim Enlry Lml WW mgh Silml Welcome to You the Future Hospitality Industry leaders Works to create memories Everyday guests rely on us for service Passion is in the service element People with a service spirit are happy to do something extra to make the guest s experience memorable The WOW factor The Pineapple Tradition The pineapple has enjoyed a rich and romantic heritage as a symbol of welcome friendship and hospitality Pineapples were brought back from the West Indies by early European explorers during the seventeenth century From that time on the pineapple became the favored fruit of royalty and the elite Today it globally recognized a l The Interrelated Nature of Hospitality and Tourism The hospitality and tourism industry is the largest and fastestgrowing industry in the world Under the umbrella of travel and tourism countless professions are necessary to meet the needs and wants of people away from home All of these scopes have an effect on each other The Interrelated Nature of Hospitality and Tourism Hospitality employees have the ability to affect the human experience by creating powerful impressions even brief moments of truth that may last a lifetime A moment of truth is an expression used to describe a guest and an associate meeting as when a guest walks into a restaurant The Interrelated Nature of Hospitality and Tourism In managed services foodservices are provided for airlines military facilities schools health care operations business and industry These foodservice operations have the dual challenge of meeting the needs and wants of both the guests and the client ie the institution itself The Interrelated Nature of Hospitality and Tourism The hotel business provides career opportunities to associates who help make reservations greet assist and serve guests The restaurant business fulfills guests diverse needs and wants Eating is a biological need that restaurants accommodate Restaurants also fulfill other human desires ie the need for socialization and to be entertained Characteristics of the Hospitality Industry Our services are mostly intangible the guest cannot testdrive a night s stay or taste the steak before dining The products are for use not possession There is inseparability of production and consumption of the service product due to each guest s unique demands There is also the perishability of our product For example we have 1400 rooms in inventory but we sell only 1200 rooms What do we do with the 200 unsold rooms Nothing we lose 2010 room nights Characteristics of the Hospitality Industry The hospitality industry is open 365 days 24 hours a day The industry relies heavily on shift work and sometimes hours extend beyond the normal work day There are four basic shifts 700AM to 300PM 1000AM to 600PM 300PM to 1100PM 391 100PM to 700AM Hospitality Industry Philosophy Changed from one manager planning organizing implementing and measuring to managers counseling associates giving them resources and helping them think for themselves A participative management style which results in associate empowerment increased productivity and guest and employee satisfaction Hospitality Industry Philosophy Corporate philosophy embraces the values of the organization including ethics morals fairness and equality Shifts emphasis from the production aspect of business to the focus on guestrelated services Sustainable Hospitality The concept of sustainability involves development that meets the needs of the present without compromising the ability of future generations to meet their own needs Sustainability is the ability to achieve continuing economic prosperity while protecting the natural resources of the planet and providing a high quality of life for its people and future generations Success in Service Approximately 70 of the American and Canadian economies are engaged in service industries It is critical to offer guests exceptional service and to understand the role of guest services This is the age of service We buy loyalty with service Success in Service A guest is someone who receives or benefits from the output of someone s work External customer satisfaction ultimately measures a company s success since they are the people who are willing to pay for a company s services Internal customers are the people inside any company who receive or bene t from the output of work done by others in the company Success in Service For success in service we need to Focus on the guest Understand the role of the guestcontact employee Weave a service culture into education and training systems Emphasize hightouch instead ofjust hightech Thrive on change Moments of Truth These are guest encounters Every hospitality organization has thousands of moments of truth every day Some of them include A guest calls the restaurant for a table reservation A guest tries to attract the bartender s attention for a cocktail because there are no seats available A server takes an order A server brings the check A departs the ra nth The Focus on Service We suffer from an overreliance on technology Effective leaders make things happen because they have developed the knowledge skills and attitude to get the most out of their staff Leadership involves managing change Our guests are constantly changing Service and Total Quality Management Total quality management TQM is a continuous process that works best when managers are also good leaders TQM is a participatory process that empowers all levels of employees to work in groups to establish guest service expectations and determine the best way to meet or exceed those expectations The difference between TQM and quality control QC is that QC focuses on error detection whereas TQM focuses on error preventin The Disney Approach to Guest Service The Disney mission statement is simple We create happiness The key elements of Disneyland guest services include Hiring developing and retaining the right people Endejrstanding their product and the meaning of the ran Communicating the traditions and standards of service to all cast members Training leaders to be service coaches Measuring guest satisfaction Recognizing and rewarding performance Disney Service Model It begins with a smile Make eye contact and use body language Respect and welcome all guests Value the magic Initiate guest contact Creative service solutions Disney s 5 Steps of Leadership 1 Provide clear expectations and standards 2 Communicate these expectations through demonstration information and examples 3 Hold cast members accountable for their feedback 4 Coach through honest and direct feedback 5 Recognize reward and celebrate success Careers A career path does not always go in a straight line Progression means that we advance from one position to another The path to General Manager in a hotel may go through a combination of positions because it is better to have experience in several areas cross training Career Goals A good way to gain experience in many areas is an internship and work experience Exploring different areas of the hotel will help you better decide what career path to take Is the Hospitality Industry for You The hospitality industry is a service industry we take pride in caring about others Recruiters look for service oriented people who walk the talk Good work experience Involvement in oncampus activities Positive attitude Good GPA SelfAssessment and Personal Philosophy The purpose of a selfassessment is to measure our current strengths and weaknesses and determine what we need to improve in order to reach our goals Selfassessment helps establish where we are now and shows links to where we want to go Make a list of areas to make improvements Now is the Time to Get Involved Very important to be involved in on campus activities Professional hospitality and tourism organizations Participate in organizational events Participating shows your commitment to the industry Professional Organizations CHRIE the global advocate of hospitality and tourism education NRA National Restaurant Association AHampLA American Hotel amp Lodging Assn ISES International Special Events Society PCMA Professional Convention Management Assn National Society of Minorities in Hspitsal Trends Globalization Safety and security Diversity Service Technology Legal issues Changing demographics Price value Social Media Sanitation The End Gaming Entertainment Chapter 1 ALWAYS LEARNING The Casino Resort A Hospitality Buffet Twenty of the thirty largest hotels in the world are casino resorts on the Las Vegas Strip Today many casino resort presidents and key executives have come up through the lodging or food and beverage side of operations What is Gambling Gambling is the act of placing stakes on an unknown outcome with the possibility of securing a gain if the bettor guesses correctly To be considered gambling an act must have three elements something wagered the bet a randomizing event the spin of slot reels or the flip of a card and a payoff What is Gambling There are two basic categories of gambling Social gambling and mercantile or commercial gambling Social gambling is conducted among individuals who bet against each other In mercantile or commercial gambling players bet against the house What is Gambling The house edge is what makes casinos possible The house edge allows casinos to offer their customers honest games fairly dealt and still remain in business The house edge is defined as a mathematical formula that allows the house to keep a small percentage of every bet made by a player The player may have some luck in the short run but the house advantage usually prevails over the long ru n What is Gambling The handle is the total amount of money bet at agame The win is the handle minus the money paid out on winning bets essentially what the casino keeps The hold percentage is the percentage of the total handle that is retained as win What is Gambling Just because the casino department is reporting a net loss for a shift does not necessarily mean that the department is inefficient or incompetent it may just be an expression of volatility Over time gaming wins will tend towards their historical average house advantage Because of volatility even a busy casino can end up in the red for a shift or even a weekend if one highstakes player has a run of good luck Comps A Usual Part of an Unusual Business Comps are complimentary goods and services offered to casino patrons in order to attract their business Comps are distributed as a usual part of a casino s operation The value of comps varies generally speaking higherproducing players are given highervalue comps Comps A Usual Part of an Unusual Business Casinos with thousands of guests on any given day rely on customer loyalty programs to track patron play Casinos use the information they gain about a player s gambling patterns to offer him or her comps based his or her expected levels of play Most loyalty programs have tiered rewards structures giving patrons an incentive to play more and unlock more rewards Types of Casino Operations Nevada style gaming tavern which is a typical bar and restaurant that has less than sixteen electronic gaming devices Stand alone casinos usually consist of only slot machines Indian reservation may be bingo parlors in prefabricated buildings to fully functional casino resorts Riverboats are usually permanently moored Components of Casino Resorts Destination resorts such as those found in Las Vegas are centered on casinos that have several types of games available Slots Table games 21 craps roulette baccarat etc Race and sports books Poker rooms Components of Casino Resorts In most parts of the United States slot machines produce the bqu of the revenue Among table games blackjack is most popular nationally Casino resorts also include the following components Lodging FampB Entertainment 7 Retail Shopping Cornwantioenr facilities as l Evolution of Gambling and Casinos Gambling is among the oldest of human behaviors Purpose built dice have been discovered at sites dating back to 7000 years ago Casino resorts as they are currently operated are much younger dating back only to 1941 Evolution of Gambling and Casinos By 1910 gambling had been outlawed in the United States In the midst of the Great Depression in 1931 Nevada legalized gambling in order to increase tourism The El Rancho Vegas was the first casino resort on what would become the Las Vegas Strip Evolution of Gambling and Casinos In the 1970 s casinos were being purchased by corporations integrating them into the national economy and initiating new regulatory scrutiny In 1976 New Jersey voters legalized casino gambling in Atlantic City Riverboat gambling debuted on the Mississippi in 1991 Evolution of Gambling and Casinos In the 1987 Cabazon decision the Supreme Court affirmed that if a state allowed betting on bingo or card games Indian tribes could offer these games without limits imposed by state regulators Today there are more than 200 Native American tribes operating casinos in more than 30 states with revenues of more than 25 billion Evolution of Gambling and Casinos Americanrun casino operators have found that Asia is an even more lucrative market for casinos than the United States Both Macau 2004 and Singapore 2010 have become casino powerhouses Since 2008 Macau s casino industry has become a worldwide leading gaming center with increasing revenues surpassing Las Vegas by nearly 400 Working in a Casino Resort Hotel operations Much like the career opportunities in the fullservice hotel industry with the exception that food and beverage can be a division of its own and not part of hotel operations Food and beverage operations Highquality food and beverage service in a wide variety of styles and concepts Some of the best foodservice operations in the hospitality industry are found in gaming entertainment operations Working in a Casino Resort Casino operations Gaming operations Casino service Marketing Human resources Finance and administration Working in a Casino Resort Retail operations Increased emphasis on nongaming sources of revenues Gaming entertainment business demands an expertise in all phases of retail operations From store design and layout to product selection merchandising and sales control Working in a Casino Resort Entertainment operations Because of the increased competition gaming entertainment companies are creating bigger and better production shows to turn their properties into destination attractions Production shows have climbed into the multi million dollar range with special entertainment venues built for superstars The Mirage Effect Since the 1990s rooms have become a major revenue center Gourmet cuisine was introduced in 1992 when Wolfgang Puck opened Spago in Caesar s Palace The quality and cost of entertainment has skyrocketed Fullfledged malls inside casinos have seen retail spending climb Sustainability in Gaming Entertainment Gaming entertainment companies continue adapting their operations and practices to fit green standards Many wellknown companies in gaming entertainment are leading the way to establish sustainable initiatives Harrah s Entertainment Inc has undertaken a sustainable initiative in several areas of operation including energy waste and water conservation as well as climate control Career Information The growth of the gaming industry has resulted in a variety of newjob openings People choose to work in the industry because it is known to place people first whether they are employees or customers Most careers include impressive benefits packages and offer many career advancement opportunities Trends in the Gaming Entertainment Industry Gaming entertainment dependent less on casino revenue and more on room FampB retail and entertainment Gaming and lodging are converging Continued scrutiny by government Exceptional service will drive the entire industry Continued improvement in management career opportunities The End Jet Travel is Without the advent of jet air travel 1950s 1960s tourism amp hospitality would be nowhere near the industry it is today Fast convenient safe travel has helped many destinations around the world BECOME destinations Air travel remains the safest method of travel for long distances The Airline Industry Air travel continues to increase globally Profitability remains evasive for most carriers 9 Volatility is the a 7 3 norm with most companies Bankruptcies have been commanplace Airline Deregulation Act of 1978 Federal law intended to remove government control over fares routes entry to market The Civil Aeronautics Board CAB and its powers were phased out The Federal Aviation Administration FAA maintained their presence and control over air safety as CAB duties transferred to the US Dept of Transportation and the US Justice Dept Consolidation occurs throughout industry if lt3 Competition changes a People Express if emerges 9 Start of loyalty programs frequent gji yer plans American Airlines debuted AA Advantage in 1981 Open Skies Code Sharing Open Skies An international policy concept with liberal rules helping create a free market Includes various components Fly across territory Land in territory without boarding or reboarding Land and permit boarding to home country Land in the territory and allow travel to a 3rd state 39 And so on and so forth The US Foreign Countries Open Skies Agreements are quite significant 0 22 Similarly we have codeshare agreements Two or more airlines share the same ight You may y on a Delta aircraft but earn points on Air France or vice versa Allows greater access to global destinations The carrier airline is the one that actually operates the ight and the marketing carriers promote and help sell the ights Discount Carriers 6 While People Express was ahead of its time low cost carriers continue to expand greatly around the world In the US JetBlue Southwest Airlines AirTran Spirit Etc Discount Carriers Continued r The traveling public has become accustomed to air travel as a commodity and no longer based upon service levels dissimilar from hotels private clubs restaurants etc r Discount carriers continue to charge baggage fees seat assignment fees in ight food fees in ight beverage fees ticket change fees etc r Consumers seem more willing to pay fees if they have a wide variety of cheap air fare choices and the option to pick and choose what they wish to pay for r The glamour days of air travel and the high Wages of the industry are long gone The Foreseeable Future 39 Consumers are less caring abOut service than safety and cheap fares 39 Employment lingers in terms of actual job39s job Security and pay because of the discount carrier mentality a Air travel will continue to increase 39 Travel benefits are truly the only great benefit remaining for employees but they re a big one for those who are on the go 7 The quotfees for every extra service model is here to stay at least for the early 21St Century r r Perspective Students do not gravitate to entry level positions in airlines for the most part Flight attendant Customer Service Representative Pilot However a minority of graduates have found employment in the airline industry very rewarding and fun The airlines of choice among graduates have included JetBlue Spirit Southwest Virgin America Virgin If you like to travel regularly you may enjoy a career in the ever changing airline industry Selected Career Web Sites http Wwwsouthwestcomhtmlabout southwestcareersindeghtml 6 http WWW j etblue comworkhere httpspiritairhodesiqcomjob startas 2 6 http WWW allegiantaircom aaCareers p hp Planning Your Hospitality Career Chapter 18 Dircovering Horpitality and T ourism 2nd Ed 2008 Pearson Educ aLion Inc Ninemeier and Perdue Upper Saddle River NJ 07458 z fSteps in Career Planning l Hndustry L Position Segment L OrganizationltJ Evaluate Career Progress NoteThe process of selecting the area ot work is not sequential first industry then segment then organization then position Rather it is simultaneous one considers each tactor in a personal order 01 prelerence Perhaps tor example one person thinks lirst 01 a position Chet and then considers the industry segment and organization Another person may think tirst about segment hotel and then consider the organization andor the position l n u 391 1 7 5414 Ninemeier and Perdue Upper Saddle River NJ 07458 UH 3941 1 Etna Fulfillment on the Joij F 535 1 You Have To II J I Ninemeier and Perdue Upper Saddle River NJ 07458 42 I 9 Explore Your Personal Interests Pan 1 List those things you do well your strengths 1 2 3 Part 2 are you r 11m0ugling39HMp aliW quotdTOlirEm dEli v2903Pearsen du6a qm Ins H N39 39 Upper Saddle River NJ 07458 39 39 memeler and Perdue Tacticsrto Identify Career Alternatives Tactic 1 Utilize Personal Communication Talk to human resources persons about positions and career path alternatives Gain practice experience by talking reading and writing about positions companies and careers Build your personal and professional network of contacts Tactic 2 Consider the future of alternative industries careers and positions Review US Department of Labor publications including the Occupational Outlook Handbookand its quarterly updates Talk with educators industry and organization officials Read trade magazines and review reliable information on the lnternet Discuss career alternatives with school career counselors and advisors Tactic 3 Learn about alternative organizations Study mission statements Review company materials Talk with and shadow industry employees Network with your contacts at school and work and within the community Read industry publications Interview informally someone who has ajob that you might like to have Tactic 4Take advantage of unique educational opportunities Talk with visiting industry speakers and adjunct faculty attend career fairs Participate in internships work experiences and project based instruction sessions Tactic 5 Emphasize what is important to you Remember your personal interests Think about typical workrelated responsibilities Do not forget your personal mission statement Dircovzririquxy39mligl and Tourlkm2nd Edt 2908 Pearsoanduca on Inc 0 H Ninemeier and Perdue Upper Saddle River NJ 07458 39 39 3942 I A o In harmony with your interests Career progression outlook o Perceived rewards Professional development opportunities Fat eelgrwmm quot3 the sv39aia39siw rsr 39g eerxpenses Alternatives Discovering Hospitality and Tourism 2nd Ed 2008 Pearson Educ aLion Inc 0 H Ninemeier and Perdue Upper Saddle River NJ 07458 39 39 a 1 I quotAlternative Evaluation Grld x ALTERNATIVES EVALUATIO N FACTOR pragression Outlook development location TOTALS 100 62 53 74 43 Percentage of priority points assigned O 30 5O 70 100 Fatztor Importance Are certain this factor will not Do not know if this faclor Are certain that thls factor will be adequately addlESSed will be addressed be adequately addressed lamovaring axp a tyrma oumm ud Ed v24 08Pearsen uea qnylnexr H N du Upper Saddle River NJ 07458 39 39 Q l R memeler and Per 6


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