Organization of Tourism and Travel Services

1
Organization of Tourism and Travel Services

• 2. Hospitality Services

2
4 Primary Services

• All 4 sectors are much or less interdependent
• Each sector comprises a multitude of commercial
  enterprises
• with a small number of dominant big companies
• many medium and small sized enterprises

3
Learning Objective

• To explore the accomodations and foodbeverage
  industries and their role in tourism.

4
Hospitality Services

• The term hospitality is generally associated with
  hotels (accommodation/lodging industry) and
  restaurants (food and beverage/catering industry)
• The accomodations industry is not only
  represented by hotels, there are a wide array og
  lodging facilities
• There are also various fb service outlets

5
Historical Development of Hospitality Industry

• Travellers have sought rest and refreshment
  throughout history...a need going back to
  antiquity
• Roman Empire inns
• Asia caravansaries
• For pilgrims guest quarters at monastries
• Hospitality comes from the word hospice
• Hospice ? a medieval house of rest for
  travellers
• Even today Alpine hospices exist...
• Food service can also be traced back to as far as
  4000 BC in history

6
Historical Development of Hospitality Industry

• In 15th century commercial hospitality ventures
  appeared in Europe (bed and breakfasts, free
  standing inns named after their owners)
• In 16th century inns taverns
• End of 17th century early version of hotels
• In 1774 first hotel in London
• In 1794 in New York
• In late 18th century the term restaurant was
  first used in Paris referring to a dining room

7
ACCOMODATION INDUSTRY
8
Hospitality Industry

• UNWTO estimates that the world hotel room
  inventory grows by 2.5 a year...however
  occupancy and room rates vary
• Some reasons are
• Bargaining power of tour operators
• Economic recession periods
• Overbuilding room supply outstrips the demand
  (1980s in North America)
• Unexpected conditions
• In Turkey there are more than 500.000 rooms in
  3000 accommodation establishments (by 31.12.2007)

9
Classification of Accomodations

• Accommodations can be classified into various
  categories
• Commercial vs noncommercial
• According to the type of customers they serve
• Serviced vs self-serviced
• Price level (luxury all-suite hotels to budget
  motels)
• Etc....
• But.....Pousada (Portugal), Auberge (France),
  Ryokan (Japan)...specific to their destination
• It is hard to establish a globally uniform
  classification system
• In 1962 International Union of Official Travel
  Organizations (forerunner of UNWTO) made an
  attempt to classify...But there are obstacles
  such as
• Definition, facilities, service standards,
  management, cultural influence on service...etc.

10
Classification of Accomodations

• As a result different systems are developed by
  countries and regions around the world with the
  efforts of private sector and governments
• Most official, government enforced classification
  systems are widely used in European countries and
  they are mostly based on physical criteria
• Classification systems have advantages....It is
  easier for international tourists to understand
  the quality
• However mandatory grading is also seen as a a
  method of assessing suitable levels of taxation
• Leading tourism countries manage well without
  compulsory grading systems...i.e. Germany, UK,
  USA and Switzerland
• The increasing segmentation of the market and and
  new information technologies makes such
  government intervention unnecessary

11
Classification of Accomodations
12
Commercial AccomodationHOTELS

• Types of Hotels
• Resort Hotels
• accommodation combined with attractions
• clients stay for longer periods
• i.e. Sea resorts, Disneyland Resort, Ski Resorts,
  Golf Resorts, Casino Resorts
• City Hotels/Business Hotels
• located in urban areas, ranging from midscale to
  upscale
• Airport Hotels
• located usually within 10 km of an airport with
  amenities for the air traveller inclunding
  facilities for business meetings
• Meeting and Convention Hotels
• Located in major cities
• Often near to convention centers
• Major space dedication is for meetings and
  exhibitions
• Bed and Breakfast Hotels (BB)
• Spa Hotels
• Others...

13
The Emergence of International Hotels

• Historically hotel companies first focused on
  their own region and within their continental
  boundaries
• However, international travel increased starting
  the end of 1940s and need for adequate
  accommodation arised
• Pan Am discovered that and formed the
  Inter-Continental Hotels Corporation (IHC) IN
  1946 acquiring its first hotel in Brazil (Ceylan
  Inter-Continental Turkey)
• Other airlines followed Pan Am
• Still many major airlines continue with either
  ownership or other arrangements to promote
  certain hotels in their reservation system
• Japan Airlines international network of
  affiliated Nikko Hotels
• The hotel market is majorly dominated by U.S.
  Multinationals and chains
• There are also some European chains such as Forte
  PLC, Accor, Club Mediterranee, Meridien...and
  Asian chains such as Taj Group, Oberoi,
  Mandarin-Oriental

14
Financing of International Hotels

• As a result of globalization of business
  community, financing resources come from
  non-domestic and non-traditional resources and
  foreign borrowing become more common
• Governments in developing countries develop
  incentive packages to lure hotel and resort
  development such as reduced or deferred taxes or
  assistance in securing investment capital
• Establishing of governmental agencies to assist
  foreign investors to deal efficiently with gov.
  agencies and permits
• Financial intitutions worldwide have become more
  conservative to approve hotel and resort loans.
  They require detailed market feasibility reports
  and search the reputation of the hotel management
  company.

15
2634 SayiliTurizm Tesvik Kanunu (selected parts)

• Madde 1 Bu Kanunun amaci turizm sektörünü
  düzenleyecek, gelistirecek, dinamik bir yapi ve
  isleyise kavusturacak tertip ve tedbirlerin
  alinmasini saglamaktir.
• Madde 14 a) Turizm kredileri öncelikle kültür
  ve turizm koruma ve gelisim bölgeleri ve turizm
  merkezlerinde yapilacak yatirimlara tahsis
  edilir. (2)
• b) T.C. Turizm Bankasi Anonim Sirketi kültür ve
  turizm koruma ve gelisim bölgeleri ve turizm
  merkezlerindeki belgeli yatirimlara tahsis
  edilmek üzere, yabanci kaynaklardan döviz
  kredileri alabilir. (2)
• Madde 16 (Degisik 30/5/1991 - 3754/1 md.)
  Turizm belgeli yatirim ve isletmeler elektrik,
  gaz ve su ücretlerini o bölgedeki sanayi ve
  meskenlere uygulanan tarifelerden en düsügü
  üzerinden öderler.
• Source T.C. Kültür ve Turizm Bakanligi
• http//www.kultur.gov.tr/TR/BelgeGoster.aspx?F6E1
  0F8892433CFF4A7164CD9A18CEAEA34EA1DE31F745BA

16
Ownership and Management of Accommodations

• Hotels are managed and operated under different
  systems around the world
• Independently/company owned and operated hotels
• Independently/company owned and operated with
  chain affiliation
• Chain owned and operated
• Independently/company owned, chained operated
• Franchised properties
• Management contracts allow the seperation of
  ownership and management

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For Hospitality ResearchHOTELS

• PricewaterhouseCoopers (PWC)
• http//www.pwc.com/extweb/industry.nsf/docid/c80e8
  a67d36f135585257084005669ae
• Smith-Travel Research
• http//www.strglobal.com/
• Deloitte
• http//www.deloitte.com/dtt/section_node/02C1042
  2Csid25253D1733832C00.html

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Commercial AccomodationTIMESHARES (Vacation
Ownership)

• They are also located in popular tourist
  destinations
• Individually owned hotel room intervals
• It allows the owner to access generally upscale
  accommodations for a usually fixed period of time
  each year
• There is high growth rate....The annual growth
  since 1980 is 15 (compared to 2 growth rate of
  hotel accommodations)

19
References

• International tourism a global perspective /
  editor, Chuck Y. Gee co-editor, Eduardo
  Fayos-Solá World Tourism Organization in
  cooperation with WTO Education Network. Madrid
  World Tourism Organization, 1997.
• Goeldner, C. R. Brent Ritchie, J. R. (2006)
  Tourism, Principles, Practices and Philosophies,
  10th ed., Wiley NJ (ISBN9780471450382)
• Lickorish, L. J. Jenkins C. L. (2002) An
  Introduction to Tourism, B-H Oxford (ISBN
  0750619562)