PRELIMINARY PERIOD

CHAPTER I
Tourism Business Value Chain

How do we define value chain?

A tourism value chain is simply defined as a SYSTEM which describes how
private sector firms in collaboration with government and civil society receive or
access resources as inputs, add value through various processes
(planning, development, financing, marketing, distribution, pricing, positioning,
among others) and SELL the resulting products to customers. (Hawkins, 2005).

Tourism Value Chain

TOURISM MULTIPLIER EFFECT

Source: World Travel and Tourism Council, 2018
Source: World Travel and Tourism Council, 2018
 TOURISM SECTORS

 Transportation
 Accommodation
 Food Service
 Travel Trade
 Cruise
 MICE
 Others

TOPIC 2: Transportation

Transport or Transportation
is the movement of people and goods from one place to the other.

The term is derived from the Latin words:

/trans/ - ACROSS
/portare/ - TO CARRY

Transportation is further subdivided into:

 Air
 Road
 Rail
 Water
 Others

AIR TRANSPORTATION
Humanity’s desire to fly possibly first found expression in CHINA, where
human flight tied to kites is recorded (as a punishment)

Chinese kite flying is 2500 years old. 6th -century Emperor, Kao Yang,
during an early purge, used an aerodynamic experiment to kill his enemies.

ICARUS is a character in Greek mythology. He is the son of Daedalus and is

commonly known for his attempt to escape Crete by flight, which ended in
a fall to his death.

The first generally recognized human flight took place in:

Paris in 1783, a hot air balloon traveled 5 miles invented by the
Montgolfier brothers, Joseph-Michel (1740 - 1810) and Jacques-Etienne
(1745 - '99)

…where two Americans who are generally credited with inventing and
building the world’s first successful airplane making it the first controlled,
powered and sustained heavier-than-air human flight on December 17,
1903 near Kitty Hawk, North Carolina.
Wilbur and Orville Wright

D.E.L.A.G
 (Deutsche Luftschiffahrts-Aktiengesellschaft)
or the German Airship Transport Corporation was the world’s first airline.
It was founded on November 16, 1909 with government assistance.

MEN AND WOMEN OF AVIATION

CHARLES LINDBERG

 Made the first solo crossing of the Atlantic;

 This feat sparked the interest of aviation;

AMELIA EARHART
Lost in an attempt in 1937 to make the longest circumnavigation in the
world.

The first countries in Europe to embrace Air Transport were:

 Finland
 France
 UK
 Germany
 The Netherlands
Some of the first countries in Asia to embrace Air Transport were:
India
Hong Kong
Indonesia
Malaysia
The Philippines

The first country in ASIA to embrace Air Transport is:

THE PHILIPPINES

The Philippine Airlines (PAL) was founded on February 28, 1941, making it
Asia’s oldest carrier still operating under its current name.
The airline was founded by a group of businessmen led by Andres Soriano
Sr., hailed as one of the Philippines’ leading industrialists at the time.

The airlines’ first flight was made on March 15, 1941 with a single Beech
Model 18 NPC 54 aircraft, which started its daily services between Manila
(Nielsen Field) and Baguio.

Notably Philippine Airlines leased Japan airlines their first aircraft, A DC-3
named “Kinsei”
On July 31, 1946 a chartered Philippine Airline DC-4 ferried 40 American
servicemen to Oakland, California from Nielsen Airport in Makati city with
stops in, Guam, Wake Island, Johnston Atoll, and Honolulu Hawaii making
PAL the first Asian airline to cross the Pacific Ocean.

The Aviation System

Aviation is the term used to describe the industry that builds and flies
aircraft.

Aircraft Manufacturing

Civil Aviation
- Major Carriers – domestic and international
- Regional Carriers (commuters)
- Supplemental Carriers (Charters)
- Cargo
General Aviation
- Private Planes
- Pleasure flying, land surveying
- Flying Instruction
- Agricultural use
- Cargo
- Corporate Jets
- Air Taxi Services

Military Aviation

Airport Operations

Aviation Support Industries

It is further divided into two:

Civil Aviation
the industry that flies the public from place to place.

Military Aviation
aircraft flown by a nation’s air force and other branches in the military.

Civil Aviation, in turn can be divided into:

Domestic service
a flight must start and end within the borders of the same country.

International service
the flight starts in one country and ends in another.

Air Service and Routes

Scheduled service
is an air transportation that operates regularly at set, advertised times no
matter how many people are booked on the flight.
Chartered service
flown by charter airlines, usually sell seats to tour operators. The
occasional nature of their flights, they are not usually advertised and sold
the way scheduled flights are.

Privately – owned jets

In some cases, business travelers usually senior executives fly on a
corporate jet that their company owns.

Fractional ownership
the plane has multiple owners who have set an amount of flight hours they
can use.

Flight Types and Routes

NON – STOP FLIGHT
traveler goes from Point A to Point B on the same aircraft with no stop in
between.

DIRECT FLIGHT
traveler goes from Point A to Point B on the same aircraft but that aircraft
stops at an airport in between. The flight will still have one flight number.

CONNECTING FLIGHT
traveler, to get to his destination, must change plane once, twice or even
more times. Each flight will have different flight numbers.

Another way to look at flights – from the traveler’s ticketing point of view:

ONE-WAY FLIGHT ITINERARY

the traveler goes to point A to Point B.

ROUND TRIP FLIGHT ITINERARY

the traveler flies from Point A to Point B, stays a while and then returns
from B to A.

OPEN-JAW FLIGHT ITINERARY

traveler flies from Point A to Point B then travels by ground transportation
from B to C, then returns by air from C to A.

CIRCLE FLIGHT ITINERARY

traveler has two or more extended stopovers and returns to the originating
city.

CLASSIFICATIONS OF AIRLINES

MAJOR/FULL – SERVICE CARRIERS

 Servicing both domestic and international (including long haul) flights
 Usually offers several classes of service

REGIONAL - CARRIERS

 Also known as feeder airlines because their flights feed passengers from
small cities into big city-airports and help fill the large planes of the major
airlines.

LOW COST CARRIERS (LCCs)

 Emerged after the liberalization of Civil Aviation in North America and

Europe in 1970’s
 Cheap, point-to-point services without any “frills”
 They offer basic services
 Passengers have the option to pay for extras such as food on board, in flight
entertainment and checked (in) baggage

AIRLINE HUBS AND SPOKES

HUBS
are airline’s centralized operation units, usually near major population
centers, both domestic and international to serve as convergence airports
for their route systems.

FORTRESS HUBS are airline dominated airports where airline

administrative centers are usually located.

SPOKES
Airlines flying smaller planes feed passengers from outlying towns into hub
cities forming the spoke of the hub.
 Airline Criteria for Choosing a Hub

 Central location in the area

 Market size, large local population
 Positive competitive environment
 Potential for generating new passenger and freight revenue
 Airport facilities
 Good operating conditions

AIRLINE CODES

 Each airline has a code of either two letters or a combination of letters and
numbers
 Are relatively easy to learn because most but not all have some relation to
the name of the airline
 Except those international airlines the came along after the logical codes
were given out

CITY CODES
Airports have two names:

 the name of the airport (usually honoring a local hero or the politician in
office when the airport was built)
 IATA 3-letter identifiers

Types of Aircraft

 Engine Type
 Purpose
 Body Width

ENGINE
TURBOPROPS (PROPELLER DRIVEN BY JET ENGINE) OR CONVENTIONAL
TURBINE JET ENGINE

 Seating capacity between 19 to 70 seats

 Short range
 Less carrying capacity
 Less runway requirements
 Commonly cruise at just above 500 km/hr

JET ENGINE
 Seating capacity between 40 – 855 (Airbus A380 – 800)
 Larger aircrafts are for long – haul flights

PURPOSE/MISSION

 SHORT HAUL – 750 miles and up to 3 hours flying time

 MEDIUM HAUL – 751 – 2,500 miles and 3 – 6 hours flying time
 LONG HAUL – over 2,500 miles and 6 – 13 hours flying time
 ULTRA-LONG HAUL – 14 hours and above

The longest non-stop passenger service is between Singapore and Newark

(NJ) in an all-business class configuration by Singapore Airlines

BODY WIDTH

 Narrow-body aircraft
 Wide-body aircraft

CLASSES of SERVICE
FIRST CLASS
 is in the compartment at the front of the plane.
It usually features, among other things:

 wider seats;
 greater pitch;
 more recline;
 more elaborate meals;
 complimentary alcoholic beverages;
 and free movies.

BUSINESS CLASS

 usually sandwiched between the first and the coach class.

 business class represents a kind of service that’s almost as good as that
found in the first class.

ECONOMY CLASS

 the more standard level of service

 also known as the coach class
It features:

 narrower seats;
 less pitch and recline;
 simple meals or snacks or even no food service at all, except perhaps a bag
of pretzels and soft drink.

TOPIC 3: RAILWAYS, MOTORCOACHES and CAR RENTALS

Historical Timeline of Railways

Ancient Systems
600 B.C. - Diolkos paved track way which transported boats across
the Isthmus of Corinth in Greece

Pre – Steam
Reisszug (1515), a funicular railway at the Hohensalzburg Castle in Austria
 – the oldest operational railway in the world.

1500’s – wooden rails

1700’s – metal railways
1900’s 1920’s – Golden Age of Railways

Downward Demand
1930's – Pre World War II – Growth in car ownership and intercity bus
services

1980 – Decline of rail service

Two factors:

 The Airline Industry

 Railways financial structure – higher fixed cost of railways

Foreign Rail Service

In many countries, railways are still a major form of transportation. Most
of these railways are owned and operated by the government.

Other Factors besides government subsidies account for the survival of

passenger trains:

 Private Car Ownership – lower compared to US and Canada

 Price of Gasoline – gasoline is much more expensive in Europe
 Proximity of major cities in Europe – European capitals are far apart from
major population centers
 Reliability of rail service
 Price of Air Travel – rail travel is almost always less expensive

Motorcoach
Commonly known as the “bus” has played a major role in the surface travel
industry throughout the world.

It is the most widespread and the least expensive form of public

transportation.

Origin of Motorcoaches
Descendant of a horse-drawn stagecoach in the 1890’s.

Motorcoach as a Travel Product

Hop on – Hop Off Buses

 Buses travel near major landmarks around the town or city
Pre-recorded or live commentary about the landscape is provided through
small headphones worn by each passenger.
Users may leave the bus and board again without limit (hop-on, hop-off) at
special bus stops on a circular route.

Car Rentals
The evolution of the car rental industry is essentially the story of the Hertz
Company, started in 1918 when the 22-year old entrepreneur Walter
Jacobs opened the first operation in Chicago with Model T Fords.

Car Rental Process

Qualifications:

 Valid (international) Driver’s License

 Be of a certain age
Usually 21 – 65 years old

 Major Credit Card If no credit card – must be cash qualified (deposit)

 Personally responsible
 e.g. employer’s name and address

Rates
vary according to the size of the car and do not include gasoline, taxes, or
charges for extra services.

REGULAR RATE – a standard charge for the day, usually with an added
amount for kilometers driven;

SPECIAL RATE – a discount rate for weekends or holidays – can also include
an unlimited kilometer plan

CORPORATE RATE – a discount rate for employees of companies with high

rental volume

Makes and Models

SUBCOMPACT
A small car (e.g. Nissan Sentra)

COMPACT
An average-sized car (e.g. Chevrolet Cavalier

STANDARD
A full-sized car (e.g. Subaru Legacy)
 DELUXE
A large luxury car that usually comes equipped with many extras (e.g.
Lincoln Town Car

CAR RENTAL EXTRA SERVICES

DROP OFF – allow the clients to drop-off the car at any location owned by
the company

GAS – gasoline charges when cars are returned with less than a full tank

INSURANCE – clients are liable for a specified initial amount of damage to

the car. Car rental firms offer insurance to cover the liability

TAXI, LIMOUSINE AND TRANSPORT NETWORK VEHICLE SERVICES

Taxi, Limousine and TNVS play an important role in public transportation.

They are called:
ON-DEMAND PUBLIC TRANSPORTATION
They don’t operate on a regular schedule, rather, passengers arrange them
individually for service.

TOPIC 4: LODGING and ACCOMMODATION SECTOR

ACCOMMODATION
defined as:
[n.] the act of accommodating or the state of being accommodated
[n.] something that meets a need; a convenience;
[n.] room and board; lodgings

People who travel and stay away from home for more than a day need
lodging mainly for sleeping:

Other purposes include:

 For safety
 Shelter for cold and rain
 Having a place to store luggage
 Being able to take a shower

Brief History of Accommodation

The history of lodging can be traced back to the civilizations of Summeria
and Egypt

One of the reasons: Early traders need a temporary place to stay while they
are away from home.
 Stopping points were established where different trading routes
intersected.

These stopping points became trading centers in itself.

Because of the journey segments, lodging facilities became a need.

They were called:
Relay houses in China
Khans in Persia
Tabernas in Rome

At some point, Innkeepers began to incorporate food and beverage service.

This led to a change in the way people traveled.

The development of the Roman network of roads that crisscrossed Europe,

Asia and Africa also contributed to the robust development of lodging and
accommodation.

As the evolution of lodging continued, the wealthy and landed aristocracy

in the world began to view the many spare rooms in their castles and
estates as sources of revenue.

This is to assist them in maintaining these expensive holdings.

The so called precursor of the modern hotel –

The City Hotel
Built in New York in 1794, it is a significant milestone in the evolution of
lodging because its sole purpose was to house guests.
The City Hotel’s 73 rooms made it quite large for its time

The Tremont House in Boston was built in 1828. It is considered by many

as the first 5 - star hotel in the world. Its amenities offered such as in –
room water pitchers and free soap is considered to be revolutionary.

In 1908, Ellsworth Statler opened what many believed to be the first

“modern hotel” – the Buffalo Statler Hotel in 1908 because of its modern
innovation.

Those innovations included:

 Fire doors
 Light switches
 Private bathrooms
 Key holes for easy access
 Circulating hot and cold water
 Full – length mirror
 Morning newspaper

Mobley (1925) in Cisco Texas – the first hotel purchased by Conrad Hilton –
the patriarch of the Hilton Chain of Hotels, one of Ellsworth Stalter’s rival

J. Willard Marriott who started in the restaurant business first, opened his
first hotel called the Twin Bridges in 1957.

The first – ever Hyatt Hotel

Hyatt House was bought by Jay Pritzker in 1957

TYPES OF LODGING AND ACCOMMODATION

APARTMENT HOTEL or APARTELLE

A type of accommodation described as a “serviced” apartment complex that
uses hotel style booking system.

It is similar to renting an apartment but with no fix contracts and

occupants can check out whenever they wish.

HOSTEL
Provides an accommodation where a guest can rent a bed, sometimes bunk
bed in a dormitory and share a bathroom, kitchen and, lounge.
Frequented by students and those who are in a very tight budget.

These dormitory-like accommodations or converted hotels usually offer

low- cost lodging in major cities.

Some hostels require guests to bring their own linens or perform small
chores in exchange for cheap lodging.

HOTEL
Is an establishment that provides paid lodging usually on a short term
basis;

Provides a number of additional guest services such as a restaurant, a

swimming pool or a childcare;

A structure that provides sleeping accommodation to travelers and that

usually provides dining facilities and housekeeping services.

3 OF THE MOST IMPORTANT TYPES OF HOTEL

 Resort Hotel
 Business or Corporate Hotel
 Suite Hotel

RESORT HOTEL
Cater primarily to leisure travelers
They’re generally found in four environments

 Beaches;
 Near ski area
 In the desert
 Near theme parks and attractions

TYPES OF RESORT HOTELS

MEGA RESORTS
a large resort hotel with very many facilities and activities covering acres
of land

ALL-INCLUSIVE RESORT
a resort that includes most or all of the costs of staying there:

 lodging;
 some or all meals;
 activities etc.

They usually have facilities for recreational activities:

 Swimming pool
 Tennis courts
 Golf course
 Dining facilities

SPA RESORTS
Provides extensive facilities for massages, facials, fitness activities and
healthy dining.

SKI RESORTS
Provides a site and facilities to serve the needs of winter sports
enthusiasts.

CASINO RESORTS
 features extensive gaming opportunities in a destination where gambling is
legal
e.g. Las Vegas

THEMED RESORTS
Is one that has strong identity often tied to some other place or time

CONVERTED HOTELS or PARADORES

old castles, monasteries, nunneries or even commercial buildings
reconfigured to accommodate tourists.

BUSINESS or CORPORATE HOTEL

 target the needs of business travelers;

 features a business center;
 guest can send faxes;
 photocopying machines;
 arrange package deliveries
 guest rooms with spacious desks, multiple telephone, printer and
computer terminals;
 with at least dining facility on-site;
 caters to fitness and recreational needs;
 located to business parks ( clusters of buildings housing various
companies) or near to airports.

CONVENTION or MEETING HOTEL

 Such hotels have numerous meeting rooms and large ballrooms that can
host groups at any size.
 Usually located near city centers

ALL-SUITE HOTEL
all accommodations are suites instead of conventional rooms.

SUITES
are accommodations with at least two rooms
e.g. bed room and living room with a wall between them
they may also feature kitchen-like elements.

JUNIOR SUITES
 large oversized rooms with separate sleeping and living areas although
only a curtain, railing, or other barrier that separate the two spaces
 in some cases, there’s no barrier at all – just a very big room
 all suite hotels maybe either leisure or business or a mix of the two

CORNER SUITE

 a suite that is located in the corner of a hotel building itself.

 this suite often takes up the same area that two standard rooms would.

BI – LEVEL SUITE

 a suite that takes up more square footage than standard rooms.

 instead of taking the horizontal square footage of the corner suite, they
take up the vertical area of two rooms.

HOSPITALITY SUITE

 intended to be more than a sleeping room. Hospitality Suites are intended

to entertain groups of people. they may include a kitchen and or bar area.
 the room themselves may take up the square footage of three or more
standard rooms.
 often, a standard room opens to the hospitality suite to serve as the
sleeping portion of the suite.

PRESIDENTIAL SUITE

 Sometimes called the “Chairman’s Suite” or the “Royal Suite”.

 These suites are considered to be the best and the largest room in the hotel
and has the best amenities.

MOTELS

 also known as motor hotel or motorist hotel

 referred initially to a single rooms whose doors face a parking lot or
common area
 a series of small cabins with common parking
 the creation was driven by increased driving distances on the United
States highway system
 one would find “T” or “L” or “U” shape structure that included rooms, an
attached manager’s office, a reception which usually takes up a space of the
guest room and catching neon signs which employs pop culture themes

PENSION

 similar to guest houses / hostels or boarding houses

 this term is used in Spain, Italy and other countries as a synonym to cheap
hostels where one can usually get a room with shared bathroom.

LIMITED - SERVICE LODGING

 a hybrid of a hotel and a motel, these modestly sized and economically

priced properties generally have rooms that open onto an interior hallway
rather than to the outside like in a motel
 rooms are simple with continental breakfast only.

 they seldom have pools or exercise facilities

EXTENDED – STAY LODGING

Some of these properties offer daily housekeeping service, whereas others
provide it only once or twice a week only.

They normally attract:

 Business people on lengthy business trips;

 Those relocating to a new city and families;
 They feature a more home or apartment – like ambiance rather than a do
all suite hotels.
 CONDOMINIUMS

 These are apartment – like facilities resemble to extended stay properties;

 The big difference is that instead of a company owning the lodging, the
individuals own each unit and also pay fees for the upkeep, security,
landscaping, and maintenance;
 But when the condo owners aren’t in the residence, they rent out their
units to travelers;
 Some provide housekeeping service but others don’t.

TIMESHARES

 Here’s another sort of an apartment – type of lodging that is similar to

condos
 Owners don’t purchase individual units, they own a certain amount of
yearly time at the property or even at the whole network of such
properties
 Timeshare industry often goes by the name vacation ownership

Club – is a variation of a time share

a company agrees to use the club or chain of clubs on a regular basis

 The commitment usually requires payment of a membership fee or deposit

for the agreed-upon room nights.
 Unlike timeshares, club provide full – service amenities
 They are value – priced.

BED AND BREAKFASTS [B&B’S]

These home – like properties (often they are homes that has been
converted) charge guests who stay in a bedroom (sometimes with shared
bath facilities) and offer full breakfast in a communal dining room area or
in the guest room.

LODGES
 These properties are usually in rural, nature dominated settings.
 They can be anything from Spartan to luxurious.

CAMPGROUNDS

 Once these facilities were where hardy tourists pitched tents.

 Today they usually refer to facilities where those who travel in
recreational vehicles or RVs stay.

DUDE RANCHES

 A unique form of lodging, these facilities convey a theme of the American

west.
 Usually located in resort areas, they feature horseback riding, cattle
roundups, outdoor barbecues, and other cowboy type of activities.

LOVE HOTELS

 a type of short-stay hotel found in East Asian countries and regions such as
Japan, South Korea, Taiwan and Hong Kong, operated primarily for the
purpose of allowing couples privacy to have sexual intercourse.
 The same concept exists in Central America, particularly in Guatemala,
where they are called autohotels.
 Entrances are discreet and interaction with staff is minimized
 With rooms often selected from a panel of buttons and the bill settled by
pneumatic tube, automatic cash machines, or a pair of hands behind a pane
of frosted glass.
 While cheaper hotels are utilitarian, higher-end hotels may feature fanciful
rooms decorated with anime characters, equipped with rotating beds,
ceiling mirrors, karaoke machines, strange lighting or styled similarly to
dungeons, sometimes including S&M gear.
***Sadomasochism

CAPSULE HOTEL
 Also known as a pod hotel, is a type of hotel developed in Japan in 1979
that features a large number of small bed-sized rooms known as capsules.

RYOKAN
Is a type of traditional Japanese inn since the 8th century AD that typically
features tatami-matted rooms, communal baths, and other public areas
where visitors may wear yukata and talk with the owner.

What Room Cost?

 The quality of property

 The facilities it offer
 The service level it provides
 The prime market it serves
 Where it’s located
 The season when the accommodations are needed
 If it has a casino
 When the accommodations are booked
 Whether the hotel or chain is offering a special promotion
 If it’s prepaid, non refundable rate
 If it’s a landmark
 Whether anything spectacular or unusual going on
 If the guest is part of a conference
 How inclusive the property is
 The number of people in a room
 If there’s a resort fee
 If the guest is using frequent stay or flyer points
 How lodging is purchased

WHO OWNS LODGING FACILITIES?

 The property may be wholly-owned by a parent chain or corporation

 A property may only be a franchise of a chain
 A property may have only a management contract with the chain

HOW LODGING IS SOLD?

 About 60% of all lodging is sold by hotels and their chains directly to the
public or businesses.
 15% is purchased by tour operators and cruise lines then fold the rooms to
their packages, or to consolidators, meeting planners and other related
services.
 The remaining 25% is sold by conventional and online travel agencies and
their websites.

ACCOMMODATION MANAGEMENT

Two main divisions:

 Front-of-the-House
 Back-of-the-House

FRONT-OF-THE-HOUSE
The ones that have actual contact with guests:

 Front desk
 Waitstaff
 Bartenders
 Entertainers

BACK-OF-THE-HOUSE
The ones that guests may sometimes see but usually don't need to see:

 Housekeepers
 Engineers
 Maintenance
 Sales
 Marketing
 Reservations
 Accounting

THE ROOMS DIVISION

Generally includes:
 front office
 reservations
 communication services
 uniform/guest services
 housekeeping

FRONT OFFICE
the gateway of the property and provides the first and the last contact for
guests.

RESERVATIONS
Often operates back-of-the-house but also has an important front-of-the-
house function since reservation work involves public relations and sales
duties

Guest and Uniformed Service

Include the services provided by the:

 Concierge
 Bellstaff
 Lobby Porters
 Valet
 Doorstaff

People in these positions have direct contact with guests

Besides performing their specific tasks, they act as salespeople and answer
questions.

Sales and Marketing

Carries out four functions:

 Sales
 Advertising
 Public Relations
 Market Analysis

Food and Beverage

Manage food production and service in one or more food outlets:
 Beverage outlets
 Cocktail lounges and pubs
 Room service
 Staff cafeteria
 In-house catering or satellite catering

Food and Beverage

A Food Service Department typically has the following functions:

 Planning menus for specific services (restaurants, banquets)

 Determining ingredients
 Purchasing
 Receiving
 Storing food-related items
 Preparing and serving food
 Clean-up

Food and Beverage Department has both front-of-the-house and back-of-

the-house component

Other Departments/Divisions

 Human Resources
 Accounting
 Security
 Maintenance and Engineering
 Materials Management (Purchasing)
 Facility Management

FOOD and BEVERAGE SECTOR

Characteristics of the Restaurant and Foodservice Industry:

 Annual sales of over $550 billion dollars.

 More than 945,000 restaurant and foodservice operators.
 Employs more than 13 million people.
 Over 57 percent of restaurant and foodservice managers are women.
 Approximately 25 percent of eating-drinking establishments are owned by
women, 15 percent by Asians, 8 percent by Hispanics, and 4 percent by
African Americans.
 The industry expects to continue to grow over the next decade, with 14.8
million jobs by 2019.

The restaurant and foodservice industry can be divided into two major
parts or segments:

 Commercial
 Non - commercial

The commercial segment makes up almost 80 percent of the restaurant

and foodservice industry.

The non - commercial segment represents about 20 percent of the

foodservice industry.

The non - commercial segment prepares and serves food in support of

some other establishment’s main function or purpose.

Categories in this segment include:

 schools and universities

 military
 health care
 business and industry
 clubs

The History of Foodservice

The Real Beginning: Ancient Greece and Rome:

 Ancient Greeks rarely dined out, although they enjoyed the social aspect of
dining and often got together for banquets.
 Romans’ meals were primarily served in the home.
 Romans’ desires for exotic foods and spices increased trade, stretching the
Roman Empire farther east and north.

The Middle Ages:

 Landowners, who lived in relative

 comfort, held large banquets
 almost every night.

Guilds, or associations of people with similar interests or professions were

organized.

Cooking guilds established many of the professional standards and

traditions that exist today.

During the Renaissance, world travel and international trade greatly

improved the European way of life.

The food preparation system we now call haute cuisine, an elaborate and
refined system of food preparation, had its roots during this period.

In 1765, a man named Boulanger began serving hot soups called restaurers
(meaning restoratives) for their
health-restoring properties.

He called his café a restorante, the origin of our modern word restaurant.

The Industrial Revolution:

 During the Industrial Revolution, people moved to the city to find work in
the growing number of factories to earn a better living.
 People needed to live close enough to the factory to walk to work, go home
for lunch, and leave again for dinner.
 As cities became business hubs, dining and lodging establishments opened
up to serve the needs of workers
 and employers.
 With the invention of the railroad in 1825, inns, taverns, and foodservice
facilities located near railway stations began to grow.

The Twentieth Century:

 By the turn of the century, more people were working and therefore eating
out more, especially for lunch.
 During World War II in the 1940s, the lodging industry prospered as
people traveled for war-related reasons.
 After World War II, in the 1940s and 1950s, the quick-service restaurant
segment of the industry grew quickly.
 In the 1960s, commercial air travel became popular, and builders
focused on land near airports as the next new place to situate hotels,
motels, and foodservice facilities.
The Twentieth Century (continued):

The rapid growth of national chains from the 1970s to today has changed
the face of the restaurant and foodservice industry.
“Eating out” became almost as commonplace as eating at home—not just
for special occasions, but simply for convenience.
In the last few decades, lifestyles have
moved steadily toward busier households
that no longer have a dedicated daily food
preparer.

Large restaurant chains lead the way for full-service, casual dining chain
restaurants, matching the growth in the quick-services sector.

Types of Service

Table Service

 Most popular type of service;

 Usually a greeter seats you;
 A server takes your order from a menu;
 Then the food and beverages are delivered on your table;
 Before leaving, you pay your server or a cashier;

Banquet Table Service

This type of service comes in three versions:

 Everyone is served with the same meal at the same time;

 Features several choices but again all meals are served at the same time;
 Seating – guest pre select from a menu and are served at the same time;

Buffet Service

 More self-serve than a cafeteria;

 One price, oftentimes paid in advance covers everything;

Cafeteria Service

 Guest picks up the tray, select their food;

 Place their choices on the tray;
 Pay their selections at a cashier;
 Take the food themselves on the table;

Room Service

 Guests order their meals from a special in – room menu;

 The meal is brought to their guest room usually within 30 – 45 minutes;
 A service charge, perhaps gratuity are, in most cases automatically added
to the bill which appears on the guest folio and is paid when they check
out;

Fast Food Service

 Guest walks up to the counter or drive through and order;

 Most fast food facilities have open seating area;
 Family or travellers often use fast food outlets to save time and money;

Delivery Service

 Food is prepared and then delivered usually to the customer’s home;

TRAVEL TRADE

THOMAS COOK and Son, was the world’s preeminent travel services
company.
 By 1872, had organized a 222-day trip around the world.

Traditional Agency
The main function of a traditional travel agency is to:

act as a real-time intermediary between customers and suppliers:

Airlines ● Hotels ● Rental Car Companies ● Cruise Lines ● Trains

Travel Management Company NOW

“The virtual elimination of domestic travel agent commission was said to
have saved the airlines around $1 billion a year.”
New York Times, 2002

TMCs offset the loss of commission by:

 Rebates
 Incentive payments
- from GDS providers per booking

 Service charge

During the 1990’s

ONLINE RESERVATIONS delivered another blow as customers increasingly
sought out computer-based, third-party vendors.

Websites, among others in pursuit of air, lodging, cruise and inclusive tour
bargains.

HOW ARE THEY SURVIVING?

 Older people and recent immigrants have remained important clients

 Business travellers have remained loyal

TRAVEL MANAGEMENT COMPANY or TOUR OPERATOR

are they the same or just similar?

“there is a thin, blurry line between them.”

In the Philippines, Tour Operators are travel agents who expand their
product range by setting up a tour operation department.

to simplify:
T.O = Wholesales
TMCs = Retailers
 Tour Operations
is defined as the preparation and implementation of all activities within an
itinerary, within a given time frame, within the estimated costs, in order to
meet the next expectations of the paying client.
- Claraval, B., 2013

Industry Characteristics
Tour Categories based on personality:

 Independent - experienced, flexibility, on their own

 Escorted - Inexperienced, wants worry-free travel
 Special Interest - bird watching, safaris, architecture
 Adventure - involves effort and energy, danger

The TOUR PACKAGE itself is constructed from at least two tourism

elements.

Tour Elements:

Transportation
(by air, sea, or land) to and from a point of origin to a destination or
destinations and back to the point of origin.

Transfers
transportation to and from a destination’s gateway (airport, pier, or bus
station) to the place of lodging and vice versa.

Accommodations
lodging and meals in the lodging establishment.

Tour Escort
refers to the services of an individual who travels with the clients from the
point of origin and back, and acts as a manager of the tour group. This
person is also known as the Tour Leader.

Sightseeing Tours
are a combination of transportation within the destination to sights and
sites of interest, tour guide’s services, entrance fees, entertainment or
activities and sometimes, snacks and meals.

Depending on the number of components tour packages have different

labels:

If only tours and transfers are included, it is called ground arrangement

package.
If tours, transfers and hotel accommodations with some meals are
included, this is called land arrangements package.

If tours, transfers, hotel accommodations and some meals, plus

transportation to and from the destination(s) are included, this is called
an inclusive tour package.

If all components are included, including tour escort, this is called inclusive
escorted tour package.

Tour Categories Defined by Purpose:

Relaxation. Chance to relax, with plenty of sun, sandy beach, good food and
nightly entertainment.

Sunspot Stayput. Round-trip flight, round-trip transfers from the airport to

the hotel and several nights’ accommodation.

Scenic. Enjoys spectacular scenery while they are away from home.

Learning. Provides a learning experience because of interest in culture,

history, science or education.

Religious and Ethnic. Religious tours to sacred or holy places (e.g. holy
land and Mecca) and visits to the place or origin where their parents or
grandparents came.

Cruise Industry
Origins of the Cruise Industry

between 1700s and the present, the passenger ship industry went through
several different era:

TRANSATLANTIC CARGO SERVICE

built for cargo with few space for passengers

CLIPPER SHIPS
carried both passenger and freight

then came the age of STEAM:

pioneered by Samuel Cunard of Halifax

1800s
the Great Age of Luxury Liners

ALBERT BALLIN OF HAMBURG-AMERICA LINE

coordinated the first recorded cruise in 1891 on board Augusta with 241
passengers
1906, Maurentina, Cunard Company
Entered into cruise company in large scale, popularly known as the “Gem of
the Sea”

Titanic, 1912
Considered as an important event in the cruise industry

In the early eighties, the cruise industry gained popularity due to the
television series “Love Boat” which was first aired in 1977.

Six Important Terms:

Bow = front
Stern = extreme rear of the ship
Aft = Rear
Port = Left side
Starboard = Right side
Midship = Middle of the ship

A ship is classified by its gross registered tonnage “(GRT), which measures

the volume of public spaces on the ship. The larger the GRT, the more
passenger the ship can carry

General Types of Cruises

World Cruises. Considered as the ultimate journey of cruising and a

vacation of a lifetime. Usually lasts for three (3) months with over 30 ports,
travelling from east to the west of the world.

Popular Cruises. Usually 7 – 10 day cruise and the most sellable type of
cruise especially during summer or winter.

Short Cruises. The bottom of the cruise pyramid that are usually 3 – 4 days
only.

Cruise Geographical Areas

The Caribbean. The first cruise area developed in 1960s for modern
cruising and remained the most popular region for Canadian and American
tourists.

The Mexican Riviera. Popular destination for cruises from the west coast
American ports with Mazatlan, Puerto Vallarta and Acapulco as popular
destination.

Alaska. The fastest growing destination and the third largest cruise region
in the world with passenger lists includes naturalists and whale watchers

Trans Canal. Passenger pass through Panama Canal on a 19-day cruises

 between Los Angeles or Acapulco and Fort Lauderdale.

The Hawaiian Islands. American Hawaii Cruises operates year-round

seven-day cruises with Honolulu, often as the port of call.

The Eastern United States and Canada. The cruise route that is most
appealing to senior citizens since its generally “quieter” than the luxury
liners.

The Mediterranean. The main cruising area of Europe and the second most
popular destination after the Caribbean.

Northern Europe. Norway’s North Cape is Europe’s equivalent to United

States’ Alaska .

Who Cruises?

 Activity Lovers
 Families
 Gamblers
 Groups
 Physically – Active
 The Physically – challenged
 Honeymoons and Anniversaries
 International Set
 Port Tasters
 Resters and relaxers
 Singles
 Soft – adventure seekers
 Special Interest or theme seekers

The Ship Experience

Before you Sail

If you arrange your flight with the cruise line, a “meet-and-greet” person
will be at the airport to facilitate your transfer to the dock.

You get on a motor coach and your luggage is loaded on board.

A festive highlight of any cruise is when the ship leaves the dock and heads
for the open water.
 A celebration may be taking place on the pool deck where, with tropical
beverage on hand, you wave goodbye to the stress of civilization.

At – Sea Days
While most days of this cruise will be spent visiting ports, your first full day
will be spent at sea.

What will you do? Whatever you wish. Perhaps you’re hungry for the
details about the ship. You could attend the ship’s orientation meeting and
the “port talk” for the next day’s destination.

The End of the Cruise

The last evening of the cruise, you enjoy the farewell dinner and show,
settle any outstanding charges at the purser’s office then head back to your
stateroom.

You pack your suitcase and leave it outside your stateroom for a crew
member to pick it up.

Land Base Operations

To support the floatels or floating resorts, each cruise line has a land based
operation.

Land based jobs with the cruise line are chiefly in sales and marketing
such as:

 Agency sales;
 Group sales;
 Group reservations;
 Air / Sea operations;
 Ticketing and price development.

Cruise lines have accounting departments, computer programmers, and

systems analysis.

Entry – level jobs are primarily in reservations and telephone sales.

Life on Board the Ship

A cruise is usually a circular journey not a one - way trip.

Port of Embarkation
The port or city where the cruise begins.

Port of Call
A city which is on the ship’s itinerary
 Port of Debarkation
The ship’s final port, which is usually the city where cruise started.

Embarkation

Passengers can embark approximately four hours Before sailing;

Upon arrival at the pier, luggage is collected by porters and brought to the
cabin after a few hours or sometimes even after the ship departs;

Cashless Society
Cruise ships operate as cashless societies;

During the boarding process, passengers register credit cards to open a

shipboard account;

Those without credit cards must make a cash deposit;

Why people cruise?

 A cruise pampers the clients

 A cruise provides stress – free vacation
 A cruise is a new experience
 A cruise facilitates shopping
 Cruises offer variety of events, activities and meals
 A cruise is a learning experience
 A cruise develops friendship
 A cruise is a romantic experience
 A cruise is a great way to celebrate a special event
 A cruise satisfies practically everyone

Organizational Structure

There are three (3) main operation departments on the ship:

 Hotel Department
 Fleet Department
 Sanitation Department

Hotel Department
Responsible for the passengers’ activities, food, beverage,
entertainment and other personal services offered.

Fleet Department
Responsible for the maintenance of the ship and includes the ship’s
officers, radio operations, engine and deck crews

Sanitation Department
Responsible for the health and safety of passenger and crew