BME 1 - OPERATIONS

MANAGEMENT IN TOURISM
AND HOSPITALITY INDUSTRY

The Accommodation, Restaurant and Recreation and

Leisure Industry
Week 2
•Hebrews 13:16 "Do not neglect to do good and
to share what you have, for such sacrifices are
pleasing to God."
The Accommodation The accommodation industry pertains
to businesses that provide lodging or a
Industry place to stay for travelers and tourists.

The primary purpose of this industry is

to offer guests a place where they can
rest, sleep, and sometimes eat and avail
other services.
The Accommodation
Industry
This industry encompasses a wide range of
establishments, from luxury hotels and resorts
to bed and breakfasts (B&Bs), inns, motels,
hostels, and serviced apartments.

The accommodation sector is closely

intertwined with travel and tourism, as most
travelers require a place to stay, whether for
leisure, business, or other purposes.
The Accommodation
Industry
Key Features:
Offers lodging facilities ranging from a single
room to expansive suites.

Often provides additional amenities such as

restaurants, spas, conference rooms, and
recreational facilities.

Can range from a one-person operation (like a

B&B) to large multinational hotel chains.
The Restaurant Industry
The restaurant industry refers to businesses that prepare and
serve food and beverages to customers.

These establishments can range from high-end fine dining

venues with elaborate menus and a focus on the overall dining
experience to fast-food joints offering quick meals at affordable
prices.

Restaurants can operate as standalone entities or be a part of

larger complexes such as hotels, shopping malls, or airports.
The Restaurant Industry
Key Features:
Provides food services to customers, either prepared
on the premises or delivered.

Can offer various cuisines, dining atmospheres, and

price points.

Often classified based on menu style, preparation

methods, and pricing.
The Recreation and
Leisure Industry
The recreation and leisure industry
encompasses businesses and activities that
people engage in during their free time for
enjoyment, relaxation, and refreshment.

This sector covers a vast array of activities,

from sports and outdoor adventures to arts,
culture, and entertainment.

The primary goal is to provide individuals with

an escape from their daily routines and offer
experiences that enrich their lives, whether
through physical activity, cultural exposure, or
pure entertainment.
 The Recreation
and Leisure
Industry
Key Features:
Encompasses a broad range of
activities, including hobbies, sports,
arts, and entertainment.

Can be both passive (e.g., watching a

movie or attending a concert) or active
(e.g., hiking, skiing, or playing a sport).

Often linked with tourism, especially in

regions known for specific recreational
activities or events.
Classification of
Hotels

By Size
By Target Market
By Level of Service
By Location
By Ownership and Affiliation
By Theme or Unique Selling
Proposition
By Size
Small Hotels:
Typically, less than 100 rooms.

Often family-owned and

operated.

Focus on personalized services.

Example: Boutique hotels, bed and

breakfast establishments.
By Size
Medium Hotels:
Usually have between 100-299
rooms.

May offer more amenities than

smaller hotels.
By Size
Large Hotels:
Generally, offer 300+ rooms.

Equipped with a wider range of facilities and services.

Often part of well-known hotel chains.

Example: Major city or resort hotels such as the Hilton New York or The
Atlantis in the Bahamas.
 By Target
Market
Business Hotels:

Primarily cater to business travelers.

Offer facilities like business centers,

meeting rooms, and high-speed
internet.

Example: Kingsford Hotel, Manila

By Target
Market
Airport Hotels:

Located close to major airports.

Ideal for travelers with overnight

layovers, early flights, or
unexpected stops.

Often offer shuttle services to and

from the airport.

Example: Hyatt Regency, Orlando.

 By Target
Market
Suite Hotels:

Rooms resemble apartments with living

spaces and, often, kitchen facilities.

Suitable for extended stays.

Example: Residence Inn by Marriott.

 By Target
Market
Extended Stay Hotels:

Designed for guests who need

accommodation for longer
periods.

Offer facilities for self-catering.

Example: Extended Stay America.

 By Level of Service
Economy/Budget Hotels:

Offer basic facilities and services without many additional

amenities.

Affordable pricing.

Example: Motel 6 or Super 8.

 Midscale Hotels:
Positioned between luxury and budget hotels.
By Level of
Service Offer more amenities than economy hotels.

May have additional facilities like a restaurant, pool, or fitness

center.
Example: Holiday Inn or Hampton Inn.
By Level of
Service
Luxury/5-Star Hotels:
Offer premium services and facilities.

Focus on providing a luxury

experience with attention to every
detail.

Often have gourmet dining, concierge

services, and upscale amenities.
Example: The Ritz-Carlton or Four Seasons.
By Location
Downtown Hotels:
Located in the heart of a city.

Often close to business centers,

shopping areas, and
entertainment hubs.

Example: New York Marriott Marquis located

in Times Square.
By Location
Suburban Hotels:

Located on the outskirts or suburban

areas of a city.

Usually quieter and sometimes more

affordable than downtown hotels.

Example: The Bellevue, Manila

 By Location
Resort Hotels:

Located in vacation destinations.

Offer recreational activities and facilities.

Could be beach resorts, ski resorts, or spa

resorts.

Example: Crimson Hotel, Mactan, Lapu-lapu.

 Independent Hotels:

By Ownership and Not affiliated with any major chain.

Affiliation
Can range from budget lodgings to luxury
resorts.
Example: The Greenbrier in West Virginia.
By Ownership
and Affiliation
Chain Hotels:

Part of a larger hotel chain.

Offer consistent services and

facilities across various
locations.

Example: Brands like Hilton, Hyatt, or

Best Western.
 Theme or Unique
Selling
Proposition
Boutique Hotels:

Smaller in size, often with fewer than

100 rooms.

Focus on providing a unique,

personalized experience.

Often themed or styled in a particular

manner.

Example: The Henry Hotel, Cebu

 Theme or Unique
Selling
Proposition
Heritage Hotels:

Located in places that have

historic value.

The hotel itself could be a historic

landmark.

Example: The Taj Mahal Palace in Mumbai or

The Plaza in New York.
Theme or
Unique Selling
Proposition
Eco-Hotels:

Focus on sustainability and

environmentally friendly
practices.

Often located in natural settings.

Example: Lapa Rios Ecolodge in Costa Rica.

Hotel Integration

Hotel integration refers to the

strategic alignment or combination of
various hotel services, operations, or
brands to achieve business objectives.
Hotel Integration
Types of Integration:
Horizontal Integration
Vertical Integration
Hotel Integration
Horizontal Integration

Horizontal Integration

Refers to the acquisition or merger of

companies at the same level of the value
chain, often competitors.

The primary purpose is to achieve

economies of scale, expand the customer
base, and increase market share.
 Hotel Integration
Horizontal Integration

Example: In 2016, Marriott International

acquired Starwood Hotels & Resorts,
making Marriott the largest hotel company
in the world.
This acquisition combined many well-
known brands under one umbrella,
including Sheraton, Westin, and Ritz-
Carlton.
Hotel Integration
Vertical Integration

Vertical Integration

Refers to the acquisition or control of different

stages of production or service within the same
industry.

Hotels may integrate vertically to gain more

control over their supply chain or distribution
channels.
Hotel Integration
Vertical Integration

Example: Many large hotel

chains have developed their
own reservation systems or
acquired travel agencies.

This allows them to manage

bookings directly without
relying on third-party
platforms, thus saving on
commission fees.
 Technological
Integration:
With the rise of digitalization,
many hotels have integrated
advanced technologies to
enhance the guest experience
and streamline operations.

This includes integrating

Property Management Systems
(PMS) with Central Reservation
Systems (CRS), Customer
Relationship Management
(CRM) tools, and other platforms.
 Example: Many hotels now offer mobile apps that
Technological integrate with room controls, allowing guests to adjust
Integration: lighting, temperature, and even request services directly
from their smartphones.
Brand Integration
Some hotel chains have
multiple brands under
their corporate umbrella,
each catering to a
different segment of the
market.

Integrating these brands

can provide synergies in
marketing, loyalty
programs, and
operational practices.
Brand
Integration
Example: Hilton Worldwide has
various brands, including Hilton
Hotels & Resorts, DoubleTree, and
Hampton Inn.

While each brand has its distinct

identity, they all fall under the
Hilton Honors loyalty program,
allowing guests to earn and
redeem points across all brands.
 Operational
Integration
Hotels might integrate different operational
areas for efficiency.

For instance, integrating the food and

beverage operations with room service can
lead to cost savings and improved service.

Another form of operational integration is

the combination of sales and marketing
teams for multiple properties or brands.
Supply Chain
Integration:
Hotels can integrate with
suppliers to ensure
consistent quality and timely
delivery of goods and
services.

This can be achieved through

long-term contracts or even
acquiring key suppliers.
Supply Chain
Integration:
Example: A luxury hotel brand
that prioritizes organic produce
might integrate closely with
local organic farms, ensuring a
steady supply of fresh
ingredients for their restaurants.
Distribution
Channel Integration

Hotels engage with multiple distribution

channels, from direct bookings to Online
Travel Agents (OTAs) like Expedia and
Booking.com.

Integrating these channels ensures

consistent pricing, real-time inventory
updates, and a seamless booking
experience for guests.
International
Perspectives
refers to understanding and
appreciating the nuances, challenges,
and opportunities that exist in
various regions around the world.

Each region has its own unique

characteristics shaped by cultural,
economic, political, and geographical
factors.
 Asia-Pacific
Market Dynamics: One of the
fastest-growing regions for the
hotel industry, driven by rising
middle classes in countries like
China, India, and Indonesia.

Trends: Increase in domestic

tourism, rise in boutique and
lifestyle hotels, and a strong focus
on wellness tourism.

Challenges: Over-tourism in certain

destinations, political tensions in
areas, and natural disasters.
Asia-Pacific

Example: In Thailand, a popular

destination in the region, there's a
mix of luxury resorts in places like
Phuket and Koh Samui, alongside
budget accommodations in
backpacking areas like Khao San Road
in Bangkok.
 Europe
Market Dynamics: A mature market
with a rich history of tourism and
hospitality.

Trends: Sustainable tourism,

experiential travel, and the rise of
"digital nomad" friendly
accommodations.

Challenges: Political uncertainties like

Brexit, over tourism in cities like
Venice and Barcelona, and fluctuating
currency values.
Europe
Example: The city of
Paris is home to iconic
luxury hotels like The
Ritz and Hôtel de
Crillon, reflecting
Europe's long-
standing tradition of
luxury and elegance.
Middle East
Market Dynamics: Known for luxury and opulence,
the Middle East has rapidly grown as a hub for
business and leisure travel, especially in the United
Arab Emirates and Qatar.

Trends: Ultra-luxury properties, shopping tourism,

and development of entertainment hubs.

Challenges: Political instability in certain areas,

dependence on oil revenue, and cultural sensitivities.
Middle East

Example: The Burj Al Arab in Dubai,

often referred to as the world's only
seven-star hotel, symbolizes the
region's penchant for luxury and
architectural marvels.
North America

Market Dynamics: A diverse market

ranging from the business hubs of
New York and San Francisco to
leisure destinations like Florida and
Hawaii.

Trends: Rise in boutique hotels,

wellness tourism, and eco-friendly
accommodations.

Challenges: High competition,

changing immigration policies
North America

Example: Las Vegas,

Nevada, with its
numerous casino-resorts
like the Bellagio and
MGM Grand, exemplifies
the region's capacity for
large-scale hospitality and
entertainment ventures.
 Africa
Market Dynamics: An emerging market
with immense potential, driven by
natural beauty and rich cultural
experiences.

Trends: Eco-tourism, wildlife safaris,

and cultural tourism.

Challenges: Political instability in

certain regions, infrastructural
challenges, and health concerns in
some areas.
 Example: The Maasai Mara in Kenya offers a range of
Africa accommodations from luxury tented camps to budget
lodges, catering to tourists coming for the Great Migration.
Latin America

Market Dynamics: A mix of vibrant

cities like Rio de Janeiro and Buenos
Aires with natural wonders like the
Amazon and Galápagos Islands.

Trends: Adventure tourism, cultural

festivals, and eco-lodges.

Challenges: Political volatility, safety

concerns in certain areas, and
economic fluctuations.
Latin America

Example: Machu Picchu in

Peru has seen a surge in
tourism, leading to a range of
accommodations in the
nearby town of Aguas
Calientes, from luxury
properties to hostels.
 Caribbean
Market Dynamics: Primarily
known for its beach resorts
and as a popular cruise
destination.

Trends: All-inclusive resorts,

water sports tourism, and
private island getaways.

Challenges: Vulnerability to
hurricanes, economic
dependence on tourism, and
competition among islands.
Caribbean
Example: The Bahamas, with its
array of luxury resorts like
Atlantis, epitomizes the
Caribbean's appeal for sun,
sand, and sea tourism.
Hotel Organization

The organization of a hotel, or its

organizational structure, is crucial for its
smooth operation and service delivery.

The structure often varies based on the

size, type, and location of the hotel, but
there are general hierarchies and
departments common to many
establishments.
Top Management

This is the highest level of

management in a hotel and is
responsible for making major
decisions, setting long-term
objectives, and overall
management.
Top Management

General Manager (GM):

The chief executive officer of the hotel.

Oversees all operations and ensures the hotel

achieves its objectives.
Top Management
Hotel Manager:

Often the second in

command, especially in
larger properties.

Handles the day-to-day

operations and reports to
the GM.
Middle Management

These are departmental heads who

report to top management and
oversee specific operational areas.

Front Office Manager:

Oversees the reception,

reservations, guest services, and
concierge.

Ensures smooth check-in/check-out

processes and guest satisfaction.
Middle Management
F&B (Food and Beverage)
Manager:

Manages all dining establishments

within the hotel, from restaurants
to room service.
Middle Management

Housekeeping Manager:

Ensures rooms, lobbies, and other

areas are clean and maintained.

Manages the housekeeping staff.

Middle
Management
Sales and Marketing Manager:

Responsible for promoting the

hotel, attracting guests, and
maintaining brand image.

Handles advertising, PR, and

sales campaigns.
 Lower Management
These are supervisory roles that manage specific
areas within departments.
Restaurant Supervisor:
Manages the operation of a specific restaurant
within the hotel.

Front Desk Supervisor:

Supervises the front desk team, ensuring efficient
guest services.

Maintenance Supervisor:
Ensures the hotel's physical facilities are in good
condition.
 Operational Level
This includes the frontline staff who
interact directly with guests and ensure
service delivery.
a. Receptionists:
Handle guest check-in and check-out.

b. Waiters/Waitresses:
Serve guests in restaurants and bars.

c. Chefs and Cooks:

Prepare meals in the hotel's kitchens.
Operational Level
Housekeeping Staff:
Clean and maintain rooms.

Concierge:
Provide guests with information
and services.

Bellboys:
Assist guests with their luggage.
Supportive
Departments
Human Resources:
Responsible for hiring, training, and
managing staff welfare.
Finance and Accounting:
Handle the hotel's finances, from
guest payments to operational costs.
Security:
Ensures the safety and security of
guests, staff, and the property.
IT Department:
Manages the hotel's technological
infrastructure, from Wi-Fi to
reservation systems.
To be continued…
The Accommodation, Restaurant and Recreation and
Leisure Industry
Week 2 Quiz ¼ 15 items
Multiple Choice:
1. Which hotel classification is primarily based on the number of rooms?
a. By Level of Service
b. By Ownership and Affiliation
c. By Size
d. By Target Market

2. Which hotel primarily caters to business travelers?

a. Beach Resort Hotel
b. Business Hotel
c. Suite Hotel
d. Eco-Hotel
The Accommodation, Restaurant and Recreation and
Leisure Industry
Week 2 Quiz ¼ 15 items
3. Which region is known for its ultra-luxury properties and shopping tourism?
a. North America
b. Europe
c. Middle Easts
d. Asia-Pacific

4. Who is the chief executive officer of a hotel?

a. Housekeeping Manager
b. Restaurant Supervisor
c. Front Desk Supervisor
d. General Manager
The Accommodation, Restaurant and Recreation and
Leisure Industry
Week 2 Quiz ¼ 15 items
5. Which department in a hotel is responsible for hiring, training, and managing staff welfare?
a. Sales and Marketing
b. Food and Beverage
c. Human Resources
d. Front Office

True or False
6. Vertical Integration refers to the acquisition or merger of companies at the same level of the
value chain.
7. The Middle East is primarily known for budget accommodations and backpacker hostels.
8. The Front Office Manager oversees the reception, reservations, guest services, and concierge in a
hotel.
 The Accommodation, Restaurant and Recreation and
Leisure Industry
Week 2 Quiz ¼ 15 items
True or False
9. A hotel's IT Department is responsible for its culinary offerings and menu design.
10. In Europe, one of the challenges faced by the hotel industry is overtourism in cities like Venice and
Barcelona.

Identification
This type of hotel is located close to major airports and is ideal for travelers with overnight layovers or
early flights.
A hotel that is part of a larger chain and offers consistent services and facilities across various
locations.
The process by which a hotel acquires or merges with companies at the same level of the value chain,
often competitors.
A region in the hotel industry known for its rich history of tourism and hospitality, with trends
including sustainable tourism and experiential travel.
This department in a hotel ensures rooms, lobbies, and other areas are clean and maintained.
The Accommodation, Restaurant and Recreation and
Leisure Industry
Week 2 Quiz ¼ 15 items
Multiple Choice:
1. Which hotel classification is primarily based on the number of rooms?
c. By Size
2. Which hotel primarily caters to business travelers?
b. Business Hotel
3. Which region is known for its ultra-luxury properties and shopping tourism?
c. Middle East
4. Who is the chief executive officer of a hotel?
d. General Manager
5. Which department in a hotel is responsible for hiring, training, and managing staff welfare?
c. Human Resources
The Accommodation, Restaurant and Recreation and
Leisure Industry
Week 2 Quiz ¼ 15 items

True or False
6. Vertical Integration refers to the acquisition or merger of companies at the same level of the
value chain. False
7. The Middle East is primarily known for budget accommodations and backpacker hostels. False
8. The Front Office Manager oversees the reception, reservations, guest services, and concierge in a
hotel. True
9. A hotel's IT Department is responsible for its culinary offerings and menu design. False
10. In Europe, one of the challenges faced by the hotel industry is overtourism in cities like Venice
and Barcelona. True
 The Accommodation, Restaurant and Recreation and
Leisure Industry
Week 2 Quiz ¼ 15 items
True or False

Identification
This type of hotel is located close to major airports and is ideal for travelers with overnight layovers or
early flights. Airport Hotel
A hotel that is part of a larger chain and offers consistent services and facilities across various
locations. Chain Hotel
The process by which a hotel acquires or merges with companies at the same level of the value chain,
often competitors. Horizontal Integration
A region in the hotel industry known for its rich history of tourism and hospitality, with trends
including sustainable tourism and experiential travel. Europe
This department in a hotel ensures rooms, lobbies, and other areas are clean and maintained.
Housekeeping Manager