2. The Word ‘Hospitality’
• Encompasses all aspects of tourism, hotel and catering (foodservice)
industry.
• Relatively modern word, meaning the friendly and generous treatment of
guests and strangers.
• ‘Catering’ refers to offering facilities to people, especially the provision of
food and beverages.
• The internationally understood term ‘foodservice’ is now also used.
3. The Global Hospitality Industry
• Tourism is an essential part of any economy and
main sector bringing in foreign currency.
• Provides travellers with food, drink, and/or
accommodation.
• Largest and fastest-growing sector.
4. Contribution to the Global Economy
• Tourism directly contributed $2.6 trillion (3.2%) to global GDP in 2017 -
equivalent to the size of the UK economy.
• Total (direct and indirect) contribution to global GDP was $8.3 trillion,
equivalent to 10.4%.
• Supported 313 million jobs, 1 in 10 jobs around the world.
• US$1.5 trillion exports (6.5% of total exports, 28.8% of global services
exports), US$882 billion investment (4.5% of total investment).
• The global Tourism sector grew at 4.6%, much faster than the economy
as a whole (3% growth during 2017)
5. Sectors of the Industry
• Hotels and other tourist accommodation
• Restaurants, fast food, takeaway
• Events/banqueting/conferencing/exhibitions
• Leisure attractions
• Industrial catering
• Welfare catering
• Transport catering
• Outdoor catering (off-premises/event catering)
• Motorway service stations
• Retail stores
6. Types of business
a. Public limited companies
b. Private companies:
• sole trader
• self-employed
• partnership
• small/medium business
• limited liability company
7. Key influences affecting the industry
• Cultural factors
• Social trends/lifestyle
• Amount of disposable income
• Inflation
• Available credit
• Regulation – taxation, GST, tourism
• Media – television, advertising, magazines, celebrity chefs
• Social Media
8. Variables in sectors
• Historical background
• Reasons for customer demand
• Size of sector
• Policies: financial, marketing, catering
• Interpretation of demand/catering concept
• Technological development
• Influences/state of sector development
• Primary/secondary activity
• Types of outlets
• Profit orientation/cost provision
• Public/private ownership
9. Types of Market
General/Profit Oriented Market:
• Non-captive: customers have a large choice.
• Includes hotels, restaurants, pubs, fast food and leisure outlets.
Restricted/Cost Oriented Market:
• Captive: customers have no choice
• Semi-captive: customers have a choice before entering but then
have to choose from food and drink on offer.
• Includes catering in business and industry, education, healthcare
and the armed forces.
10. Sectors in the foodservice industry
Profit orientated
(public or private ownership)
(foodservice as main or secondary activity) Cost provision
Restricted market General market Restricted market
Transport catering Hotels/restaurants Institutional catering
Clubs Popular catering Schools and colleges
Industrial (contract) Fast food/takeaway Universities
Private welfare Retail stores Hospitals
Events/conferences/exhibitions Armed forces
Leisure attractions Prisons
Motorway service stations Industrial (in-house)
Pubs and wine bars
ODC (off-premises catering)
11. Employment in the industry
• Operational staff
• Supervisory staff
• Management staff
12. Employers’ and Employees’ rights and responsibilities
Employers must:
• Provide the employee with a detailed job description and a contract of
employment.
• Adhere to laws relating to employment of staff, including health and
safety and food safety.
Employees must:
• Work in the way that has been agreed to in the contract.
• Follow all the organisation’s policies and practices.
13. Regulation and protection
Employers and people in employment are subject to a variety of legislation.
This includes regulations on:
• Children and Young Persons
• Licensing
• Rehabilitation of Offenders
• Data Protection
• National Minimum Wage
• Working Time Regulations and Statutory Sick Pay
• Gender discrimination, Race Relations, Human Rights.
