The hospitality industry just like any other industry has parts and sectors to it. The Hospitality industry is more than just service workers and hotels. The industry is mainly broken down into 4 sectors. Here’s a quick explanation of each and how they all connect and contribute to the hospitality industry.
First, let us define hospitality. Hospitality extends beyond hotels and restaurants. Any establishment that offers services to a guest who is away from home is considered part of the hospitality industry. This means it includes everyone from large international hotel chains and resorts all the way down to your local spa, coffee shop, and even music bar. As you can see, it is a very large industry with multiple parts and systems not just at large but also within hospitality’s different sectors.
Food and Beverage
The food and beverage industry hires workers with all kinds of skills since the industry is made up of many different kinds of establishments of varying sizes and customers. The standard of service and skills as well as amount of employees differ from one establishment to another. For example, a 24-hour fast food chain will probably hire twice as many employees than of a small fine-dining restaurant. However, a fine dining restaurant will hire more highly skilled chefs and servers compared to cooks and servers at a fast food chain.
Each establishment has its part to play and caters to different types of customers as well. One thing that all the food and beverage businesses have in common is that they bring value to the area. Food and beverage enterprises in general, whether large or small, add value to the area it is in. It acts as a magnet for spending customers and of course, helps the local economy.
Accommodation/Lodging
When we think of accommodation especially when it comes to traveling, hotels and resorts are what usually come to mind. However, the accommodation industry is more than just your well-known international hotel chains. An establishment that provides shelter and a temporary place to stay for guests is part of this sector. This includes large hotels with 500 rooms or more, airport hotels, serviced apartments, bed and breakfasts (B&Bs), homestays, inns, motels, resorts, and more.
This sector also has an array of workers with various skill sets. From the housekeepers who make up the rooms day in and day out, to the front desk and concierge staff, bell boys and doormen, gardeners and pool staff to the more business and sort of hidden side departments such as marketing and advertising teams, security, laundry services. Whether it’s the people we see as we enter and stay, to the attendants and workers we don’t see, they all contribute to this sector.
Entertainment and Recreation
The entertainment and recreation industry is where all the fun is at. Of course when we travel to a new place we want to see what activities they have and we all generally are looking to experience new things. Sometimes it’s not enough to just be a homebody at the hotel, some travelers prefer to relax by going on adventures and seeking enjoyable activities. Some examples of establishments and events that fall under this sector are museums and zoos, theme parks, casinos, parks and seascapes, clubs, festivals, spas, shopping centers, sports facilities, hiking and biking trails, trade fairs, cultural and religious events, and many more. Whether it is activities that are based around natural attractions or man-made, these all fall under the entertainment and recreation sector.
Everyone has a different idea of relaxation, but eventually, we all find ourselves in this sector of the hospitality industry. Recreation means doing things that make us feel rested and finding a moment to relax whether it is physically or mentally. We seek things that make us happy and partake in activities that refresh and hopefully enrich our mind and body.
Travel and Tourism
Although we may confuse the travel and tourism industry with the hospitality industry they are not one and the same. They do overlap in some way and one cannot survive without the other. To create a positive overall customer experience both sectors have to work closely together, but at the end of the day, it’s important to remember that they are not the same thing. Travel and tourism’s main function is to get people to spend money in other places outside of their immediate surroundings. The hospitality industry largely relies on incoming tourism and guests who are looking to spend on services.
The best way to understand the tourism industry is to break it down into two: domestic and international tourism. Domestic tourism encompasses travelers who are traveling within their own country. For example, a Filipino who lives in Manila but goes on vacation to Boracay or takes a road trip to Ilocos would be a domestic tourist. This type of travel doesn’t involve a passport or any visas and of course, there is no need to convert money or carry around a different type of currency. Domestic tourism is important for the local economy and businesses. We often hear the slogan ‘support local’ and domestic tourism is definitely one way to do just that - support local entrepreneurs and establishments. Domestic tourists aren’t just traveling to visit family or friends, or to sit on the beach or ski down a slope. Some travel with the aim of learning more about one’s country, people, history, and culture through exploring new places by taking a quick flight or long drive.
International tourism is when travelers visit and stay in destinations outside of their home country. It involves crossing international borders and utilizing passports and visas to travel from one country to another. Some countries may have other requirements (aside from a visa) in order for you to travel there, some of these include health declarations, specific vaccines, or other additional paperwork. Someone who travels to a different country and stays there for less than a year whether to visit friends and family, conduct business, or purely for leisure or other purposes are all considered an international tourist.
International tourism greatly helps the economy of a country not just by creating jobs but also by inviting possible foreign investments. Aside from spending money and helping the economy of a country, visitors also walk away with more information and understanding about a new culture. International travel promotes awareness and learning of other places which in turn fosters connection and appreciation between different cultures and people.
As you can see the hospitality industry is an intricate network of systems and sub-systems that impact our daily life. From where we stay when traveling, to the restaurants we frequent, to the activities we partake in, and the employees that make or break our experience, we are surrounded by the meshwork of the hospitality industry!
