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INTRODUCTION TO THE

Hospitality Industry
SEVENTH EDITION

Clayton W. Barrows

Tom Powers

Professor

Professor Emeritus

Department of Hospitality Management

School of Hospitality and Tourism
Management

University of New Hampshire

University of Guelph

John Wiley & Sons, Inc.


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This book is printed on acid-free paper.
Copyright © 2009 by John Wiley & Sons, Inc. All rights reserved
Published by John Wiley & Sons, Inc., Hoboken, New Jersey.
Published simultaneously in Canada.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form
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Library of Congress Cataloging-in-Publication Data:
Barrows, Clayton W.
Introduction to the hospitality industry / Clayton W. Barrows, Tom Powers. – 7th ed.
p. cm.
Includes index.
In earlier ed. of work, Tom Powers name was listed first on t.p.
ISBN 978-0-471-78276-6 (cloth)
1. Hospitality industry. I. Powers, Thomas F. II. Powers, Thomas F.
Introduction to the hospitality industry. III. Title.
TX911.P62 2008
338.4'791--dc22
2007021307
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1


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CONTENTS

Preface

xiv


PART ONE: PERSPECTIVES ON CAREERS IN HOSPITALITY

1

CHAPTER 1: THE HOSPITALITY INDUSTRY

3

AND

YOU

What Is Hospitality Management?

4

The Manager’s Role in the Hospitality Industry

5

CASE HISTORY 1.1: A Former Student’s Unexpected Change

6

Why Study in a Hospitality Management Program?
Employment Opportunities

7

Planning a Career

The Meaning of Work

10

Employment as an Important Part of Your Education
Profiting from Work Experience ■ Learning Strategies for Work Experience

11

Getting a Job
Getting in the Door ■ Learning on the Job ■ Other Ways of
Profiting from a Job

15

INDUSTRY PRACTICE NOTE 1.1: An Employer’s View of Job
Placement—Hyatt

18

Employment at Graduation

18

GLOBAL HOSPITALITY NOTE 1.1: Career Opportunities Overseas

20

Goals and Objectives: The Strategy of Job Placement


20

The Outlook for Hospitality
The Effects of September 11, 2001 ■ Polarization in Hospitality Service
Organizations ■ Accelerating Competition ■ Service Is the
Difference ■ Value Consciousness ■ Technology ■ Empowerment
■ Diversity ■ Concern with Security ■ Concern with Food
Safety and Sanitation ■ Globalization

24

Summary

28
29
29
30
31

Key Words and Concepts
Review Questions
Internet Exercises
Notes


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CHAPTER 2: FORCES AFFECTING GROWTH
HOSPITALITY INDUSTRY

AND

CHANGE

IN THE

33

Managing Change

34

Demand
The Changing Age Composition of Our Population

34

INDUSTRY PRACTICE NOTE 2.1: Demographics in Practice

37


Diversity and Cultural Change
GLOBAL HOSPITALITY NOTE 2.1: As North America Ages, Some
Parts of the World Are Getting Younger

41

INDUSTRY PRACTICE NOTE 2.2: Advocacy for the Advancement of
Women in Food Service

46

Supply
Land and Its Produce

48

INDUSTRY PRACTICE NOTE 2.3: Is the Middle Class Shrinking?

49

Labor

Workforce Diversity

53

The Impact of Labor Scarcity

55


Summary

56
57
57
58
60

Key Words and Concepts
Review Questions
Internet Exercises
Notes

PART TWO: FOOD SERVICE

61

CHAPTER 3: THE RESTAURANT BUSINESS

63

The Varied Field of Food Service
The Outlook for Food Service

64

The Restaurant Business

67


The Dining Market and the Eating Market
Dining Well ■ The Eating Market and Its Dynamics

68

Contemporary Popular-Priced Restaurants
Quick-Service Restaurants ■ Midscale Restaurants
■ Casual Restaurants

76


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CASE HISTORY 3.1: Quark’s Restaurant Serves Earthlings, Too

v
91

High-Check-Average Restaurants
GLOBAL HOSPITALITY NOTE 3.1: Culinary Preparation


93

Restaurants as Part of a Larger Business
Restaurants in Retail Stores ■ Restaurants in Shopping Malls

94

Summary

95
96
97
97
98

Key Words and Concepts
Review Questions
Internet Exercises
Notes

CHAPTER 4: RESTAURANT OPERATIONS

101

Restaurant Operations
The Front of the House ■ The Back of the House ■ The “Office”

102


INDUSTRY PRACTICE NOTE 4.1: Research Chefs Association

110

General Management

Making a Profit in Food Service Operations
Increasing Sales ■ Reducing Costs
Keeping the Score in Operations: Accounting Statements
and Operating Ratios
Cost of Sales ■ Controllable Expenses ■ Capital Costs

115

117

Life in the Restaurant Business
Salary Levels

119

Summary

122
122
123
123
125

Key Words and Concepts

Review Questions
Internet Exercises
Notes

CHAPTER 5: RESTAURANT INDUSTRY ORGANIZATION: CHAIN, INDEPENDENT,
OR FRANCHISE?
Chain Restaurant Systems
Marketing and Brand Recognition ■ Site Selection Expertise
■ Access to Capital ■ Purchasing Economies ■ Control and
Information Systems ■ New Product Development ■ Human-Resource
Program Development ■ Chains’ Market Share

127
128


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Independent Restaurants
Operating Advantages ■ Marketing and Brand Recognition

■ Site Selection ■ Access to Capital

136

INDUSTRY PRACTICE NOTE 5.1: Working with the SBA

139

INDUSTRY PRACTICE NOTE 5.2: Why Go Public?

140

Purchasing Economies ■ Control and Information Systems ■ Human
Resources ■ The Independent’s Extra: Flexibility ■ The Independent’s
Imperative: Differentiation ■ Between Independent and Chain

Franchised Restaurants
The New Franchisee ■ Continuing Franchise Services

144

INDUSTRY PRACTICE NOTE 5.3: Interested in Becoming a Franchisee?

148

The Franchisee’s View ■ The Franchisor’s View
INDUSTRY PRACTICE NOTE 5.4: Rosenberg International Center
of Franchising

154


Franchisor–Franchisee Relations ■ Franchising: A Middle Way

Summary

155
156
156
157
159

Key Words and Concepts
Review Questions
Internet Exercises
Notes

CHAPTER 6: COMPETITIVE FORCES

FOOD SERVICE

161

Competitive Conditions in Food Service

162

The Marketing Mix
Product

164


CASE HISTORY 6.1: Finding the Proper Marketing Mix—Shakey’s Pizza

165

IN

Price ■ Place—and Places ■ Promotion
INDUSTRY PRACTICE NOTE 6.1: The Wealthiest Consumers

175

Competition with Other Industries
Convenience Stores ■ Supermarkets ■ The Home as Competition

177

Summary

182
183
184
184
186

Key Words and Concepts
Review Questions
Internet Exercises
Notes



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CHAPTER 7: ON-SITE FOOD SERVICE

vii
189

Comparing On-Site and Commercial Food Services

190

GLOBAL HOSPITALITY NOTE 7.1: International Perspectives

193

Self-Operated Facilities

193

Managed-Services Companies
Pros and Cons of Managed Services


194

Business and Industry Food Service

196

INDUSTRY PRACTICE NOTE 7.1: Measuring Guest Participation

199

College and University Food Service
College Students as Customers

200

Health Care Food Service
The Dietetic Professional ■ The Dietetic Technician ■ The Dietary
Manager ■ Dietary Department Organization ■ Trends in Health Care
Food Service

204

School and Community Food Service
The School Food Service Model ■ Contract Companies in School Food
Service ■ Trends in School Food Service ■ Service Programs for the
Aging ■ Community-Based Services ■ Senior Living Centers and
Communities

210


Other Segments
Recreation ■ Private Clubs ■ Transportation

221

Vending

224

Summary

227
228
228
228
231

Key Words and Concepts
Review Questions
Internet Exercises
Notes

CHAPTER 8: ISSUES FACING FOOD SERVICE

233

Consumer Concerns
Health and Wellness ■ Junk Food and a Hectic Pace
■ Nutritional Labeling


234

INDUSTRY PRACTICE NOTE 8.1: Defining Health Claims

241

Food Safety and Sanitation ■ Alcohol and Dining


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Food Service and the Environment
Thinking About Garbage from Dump to Waste Stream ■ Managing the
Waste Stream

245

Technology
Enhancing Customer Service ■ Technology in the Back of the House


253

INDUSTRY PRACTICE NOTE 8.2: ESP Systems

256

Technology, the Internet, and Food Service Marketing
■ Technology and Management

Summary
Key Words and Concepts
Review Questions
Internet Exercises
Notes

259
260
260
261
263

PART THREE: LODGING

265

CHAPTER 9: LODGING: MEETING GUEST NEEDS

267


The Evolution of Lodging
268
The History of Lodging ■ The Evolution of the Motel ■ The Motor Hotel
Classifications of Hotel Properties

271

INDUSTRY PRACTICE NOTE 9.1: Europe: A Continent
of Lodging Distinctiveness

272

Hotels Classified by Price ■ Hotels Classified by Function ■ Hotels
Classified by Location ■ Hotels Classified by Market Segment ■ Other
Hotel Classifications
INDUSTRY PRACTICE NOTE 9.2: Trends in Spa Operations

281

Types of Travelers
Business Travelers ■ Other Segments ■ International Travelers

285

Anticipating Guest Needs in Providing Hospitality Service

287

INDUSTRY PRACTICE NOTE 9.3: Creativity Is Evident in Hotel Properties


288

INDUSTRY PRACTICE NOTE 9.4: The Hotel of the “Not So Distant” Future 289

Service, Service, Service

290

INDUSTRY PRACTICE NOTE 9.5: Hotel Rating Services

292

Employees as the Internal Customers


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Summary
Key Words and Concepts
Review Questions
Internet Exercises
Notes


CHAPTER 10: HOTEL

AND

LODGING OPERATIONS

ix
296
298
298
299
300
303

Major Functional Departments

304

The Rooms Side of the House
The Front Office ■ Automation of the Front Office
■ Reservations and Yield Management ■ Housekeeping
■ Telecommunications and Call Accounting Systems

307

INDUSTRY PRACTICE NOTE 10.1: Housekeeping

316


Uniformed Services Staff
INDUSTRY PRACTICE NOTE 10.2: The Concierge

318

Security

Hotel Food and Beverage Operations
Banquets ■ Food Production ■ Sanitation and Utility ■ Leased
Restaurants

321

Staff and Support Departments
Sales and Marketing

325

INDUSTRY PRACTICE NOTE 10.3: Pros and Cons of Outsourcing
Food and Beverage Operations

326

Accounting ■ Human Resources ■ Engineering

Income and Expense Patterns and Control
The Uniform System of Accounts

329


Entry Ports and Careers
Front Office ■ Accounting ■ Sales and Marketing
■ Food and Beverage ■ Owning Your Own Hotel

333

Summary

336
337
337
337
339

Key Words and Concepts
Review Questions
Internet Exercises
Notes


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CHAPTER 11: FORCES SHAPING

HOTEL BUSINESS

THE

341

The Economics of the Hotel Business
A Cyclical Business ■ Hotel Cycles and Financial Performance

342

INDUSTRY PRACTICE NOTE 11.1: Hotel Operations After Katrina

347

RevPAR ■ Hotels as Real Estate ■ International Hotel Development
INDUSTRY PRACTICE NOTE 11.2: Condo-Hotels as Mixed-Use
Developments

353

Private Equity Investments
INDUSTRY PRACTICE NOTE 11.3: The Elements of the Hotel
Real-Estate Deal

354


The Securitization of the Hotel Industry ■ The Hazards of Public
Ownership
CASE HISTORY 11.1: Going Public: Some Good News and Some Bad

362

Dimensions of the Hotel Investment Decision
Financial ■ An Operating Business ■ Segmentation: For Guests or
Developers? ■ Management Companies ■ Asset Management
■ Entrepreneurial Opportunities

364

Summary

369
370
371
371
373

Key Words and Concepts
Review Questions
Internet Exercises
Notes

CHAPTER 12: COMPETITION

IN THE


LODGING BUSINESS

377

The Conditions of Competition
A Fragmented Market ■ A Cyclical Market ■ Cost Structure
■ Securitization ■ Technological Revolution

378

The Marketing Mix in Lodging
Competitive Tactics

381

Product in a Segmented Market
Food Service ■ Other Services and Amenities

383

INDUSTRY PRACTICE NOTE 12.1: Hotel Honored among World
Business Hotels
Systemwide Services

392


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INDUSTRY PRACTICE NOTE 12.2: Franchisors–Franchisees:
A Growing Team Approach

xi

394

Price and Pricing Tactics
Yield Management

395

Place—and Places
Location ■ Distribution Channels

399

INDUSTRY PRACTICE NOTE 12.3: Travel Intermediaries: Utell
Acquires Unirez

401


Promotion: Marketing Communication
Advertising in Mass Media ■ Advertising on the Internet
■ Sales Promotion

405

Summary

408
409
410
410
411

Key Words and Concepts
Review Questions
Internet Exercises
Notes

PART FOUR: TRAVEL AND TOURISM

413

CHAPTER 13: TOURISM: FRONT

415

AND

CENTER


The Importance of Tourism
Factors Affecting Travel and Tourism ■ Growing Leisure Time?
■ Income Trends ■ Demographics and Travel

416

Travel Trends
Mode of Travel ■ Trip Duration

420

GLOBAL HOSPITALITY NOTE 13.1: Public Anxiety and the Travel Industry 422

The Economic Significance of Tourism
Tourism and Employment ■ Publicity as an Economic Benefit

424

The United States as an International Tourist Attraction
Measuring the Volume ■ Reasons for Growth of the United States as a
Destination

427

Businesses Serving the Traveler
Passenger Transportation ■ Channels of Distribution
■ Reservation Networks

429



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Noneconomic Effects of Tourism
Crowding

437

GLOBAL HOSPITALITY NOTE 13.2: Volunteer Tourism

440

Favorable Noneconomic Effects

Summary
Key Words and Concepts
Review Questions
Internet Exercises
Notes


CHAPTER 14: DESTINATIONS: TOURISM GENERATORS

442
443
443
444
446
449

Motives and Destinations

450

Mass-Market Tourism

454

Planned Play Environments
Theme Parks ■ Themes ■ Scale ■ Regional Theme Parks
■ Themes and Cities

455

INDUSTRY PRACTICE NOTE 14.1: A Different Kind of Theme Park

462

■ Employment and Training Opportunities


Casinos and Gaming
Las Vegas ■ Laughlin (Clark County) ■ Atlantic City
■ Mississippi Gulf Coast

464

CASE HISTORY 14.1: Changes Come to Atlantic City

476

Other Markets ■ Casino Markets and the Business of Casinos
■ Casino Staffing

Urban Entertainment Centers

480

CASE HISTORY 14.2: The National Restaurant Association
Restaurant Show

482

Shopping Centers ■ Zoos, Sanctuaries, and Aquariums

Temporary Attractions: Fairs and Festivals

487

CASE HISTORY 14.3: The New Orleans Jazz Fest


489

Natural Environments

490

On a Lighter Note . . .

492


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Summary

xiii
493
494
494
494
497


Key Words and Concepts
Review Questions
Internet Exercises
Notes

PART FIVE: HOSPITALITY AS A SERVICE INDUSTRY

499

CHAPTER 15: THE ROLE

501

OF

SERVICE

IN THE

HOSPITALITY INDUSTRY

A Study of Service
What Is Service?
INDUSTRY PRACTICE NOTE 15.1: Six Sigma Comes to the
Hospitality Industry

502

505


Types of Service

Rendering Personal Service
Task ■ Interpersonal Skills

508

Managing the Service Transaction
The Product View of Service ■ The Process View: Empowerment
■ Production or Process View?

511

How Companies Organize for Service
516
Service Strategy ■ Service Culture ■ The Employee as Product:
The Importance of People ■ Service as a Sustainable Competitive Advantage
Summary
Key Words and Concepts
Review Questions
Internet Exercises
Notes

Index

522
523
523
523
525

526


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PREFACE

Tom and I, like others who both teach and study the hospitality industry, believe
that we are associated with one of the most interesting, dynamic, and exciting industries in the world. It is an industry that generates passion among those who work in
it. In addition to passion, however, knowledge is also required if one is to be successful in the field. Having the necessary knowledge, however, is an ongoing challenge, even during the best of times, but particularly now with so many changes taking place so quickly. For this reason, we continue to strive to monitor and report on
the ever-changing hospitality and tourism industries. In this latest edition, we have introduced content on new and emerging companies, new technologies, and new
ways of doing business. Indeed, the challenges as well as the opportunites for graduating students are greater than ever. This is an exciting time to be studying hospitality management and we try to convey that in this edition of the textbook.

Content—Benefits for Students

I

n our efforts to present the industry in an organized and responsible manner, we
have divided Introduction to the Hospitality Industry, Seventh Edition, into
five primary sections encompassing everything from students’ concerns about their role
in the industry and operational issues to the function of management. Students should
appreciate the organization of the chapters, which will help them to understand the
relationships between the various topics. Brief descriptions of each of the major sections are as follows.
Part One: Perspectives on Careers in Hospitality begins by developing an industry

perspective with a general discussion of hospitality careers. Industry trends, changing demographics, and supply and demand are all important topics covered in these chapters.
Part Two: Food Services takes an in-depth look at food service and its various subsegments. Restaurant operations, organization, environment, competition, on-site food
service, and food service-related topics are covered. The final chapter of the section
looks at issues facing the industry.


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Part Three: Lodging focuses on the lodging industry and its various segments, products, and brands. These chapters chronicle recent developments, including new modes
of financing hotel expansion and new financial trends affecting this sector. Factors relating to the competitive environment of the lodging industry are the subject of the final
chapter in Part Three.
Part Four: Travel and Tourism comprises two chapters that focus on tourism. Tourism
growth, economic and social impacts, travel trends, career opportunities, and the role that
tourism plays in society are all discussed in Chapter 13. Chapter 14 looks at tourism destinations, including the growing areas of gaming, theme parks, and natural environments.
Part Five: Hospitality as a Service Industry examines service as process and considers the work of rendering service as a personal experience.
In the end, students will have gained a strong overview of the industry, where it
fits into the broader world, the major career paths, as well as the important issues and
challenges that managers face.

Content—Benefits for Instructors


I

nstructors will benefit from the flow of Introduction to the Hospitality Industry, Seventh Edition; the numerous examples provided; topic headings, which can
be used to generate class discussion; and the numerous supplementary materials including the newly revised Instructor’s Manual (ISBN 978-0-470-25725-8 discussed
later in this preface). In addition, several sections of the book have been revised and/or
expanded, based upon instructor feedback. These include the following:
■ Discussion of demographics and changes within specific generations
■ More culinary examples including international culinary programs and a profile of
the Research Chefs Association
■ A greatly expanded section on franchising
■ More examples of the use of technology in the industry including a profile of a
leading company and the latest technology usage statistics
■ Revised discussions of tourism impacts with a greater emphasis on international
travel
■ Discussion of volunteer tourism as a travel trend
■ Revised and expanded discussions of prominent gaming destinations such as Atlantic City, the Mississippi Gulf Coast, and Macau


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Preface


■ New focus on electronic resources in the management section including online
recruiting
■ Additional information about spas
■ The addition of a profile on the European lodging industry
■ An overview of trends in lodging with a focus on electronic distribution channels

Features of the Book for Students and Instructors

S

everal pedagogical features have been newly developed and/or carried over from previous editions of Introduction to the Hospitality Industry in order to help students understand the material more easily and to help bring the world of hospitality alive.
■ Additional international examples of hospitality and tourism operations have been
included throughout the text.
■ The Purpose of This Chapter section introduces the chapter to students and discusses the significance to the hospitality industry of the topics covered.
■ The This Chapter Should Help You section lists specific learning objectives at the
beginning of each chapter to help students focus their efforts and alert them to the
important concepts discussed.
■ Industry Practice Notes appear in almost every chapter. These boxes take a closer
look at specific trends or practices in the hospitality industry, from an interview
with a recruiter from a major food service company (Chapter 1) to the relationship between working in the service industry and stress (Chapter 15).
■ Case Histories support the chapter discussions by highlighting examples from
today’s hospitality organizations and associations.
■ Global Hospitality Notes continue to appear to give students more of an international
perspective on their studies. The boxes cover topics as diverse as career opportunities overseas (Chapter 1) and a discussion of volunteer tourism (Chapter 14).

CAREERS IN
HOSPITALITY

Q


■ The Careers in Hospitality icon appears throughout the book in the margin of the
text to alert students to specific discussions of career opportunities in the hospitality industry.
■ The Summary provides a concise synopsis of the topics presented in the chapter.
■ A list of Key Words and Concepts appears at the end of each chapter. Further, key
words and concepts are identified in bold type when they first appear in chapters.
■ The Review Questions test students’ recall and understanding of the key points in
each chapter. Answers are provided in the Instructor’s Manual.


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■ Internet Exercises, which are mini research exercises and projects, were developed
to familiarize students with the different ways in which the hospitality industry is
using the Internet. They have been updated and revised. Answers are included in
the Instructor’s Manual.

Supplementary Materials

A


n Instructor’s Manual (ISBN 978-0-470-25725-8) with test questions accompanies this textbook. The manual includes sample syllabi, chapter overviews and outlines, teaching suggestions, answers to the review questions, and Internet exercises, as
well as test questions and answers. A companion Web site, at www.wiley.com/college/
barrows, is also available with this text, which includes the Instructor’s Manual and
PowerPoint slides of selected tables and illustrations from the text.
Web CT and Blackboard online courses are available for this book. Visit www
.wiley.com/barrows and click on the “Technology Solutions” button at the top of the
page for more information, or contact your Wiley representative.
A Study Guide, which has been created for this edition (ISBN 978-0-470-28545-9),
includes chapter objectives, detailed chapter outlines, review questions, and activities
to help students reinforce and test their understanding of the key concepts and features
within the text.

Acknowledgments

F

irst of all, we would like to acknowledge those individuals who provided direct assistance in the revision of the chapters. Our thanks go out to Dr. Debra Cannon,
director of the Cecil B. Day School of Hospitality Management at Georgia State University, who revised the lodging chapters. Second, we would like to acknowledge the help
of Rong Lin, a graduate from the University of Guelph’s Hospitality and Tourism MBA
program, who revised the Instructor’s Manual. Dr. Richard Patterson, of Western
Kentucky University, drew upon his extensive knowledge of the Web to develop the
Internet Exercises at the end of each chapter. He also provided Internet addresses for
the organizations and associations discussed in the case histories. His commitment and
enthusiasm have been invaluable. Finally, special thanks go out to Novie Johan of the
University of Surrey who assisted with research, writing, and editing.
We would also like to acknowledge many people who have helped in shaping
this book, even at the risk of inadvertently overlooking some of the friends and colleagues who have helped us. Tom’s wife, Jo Marie Powers, has been the source of



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Preface

many ideas found in this text—not all, we’re afraid, properly acknowledged. Her advice and critical reactions have been vital to developing the text over the course of
earlier editions. She also has made major contributions to the test bank developed for
this edition and has served as editor and co-author on earlier editions of the Instructor’s Manual.
Many faculty from hospitality management programs around the world have provided helpful information and feedback in the preparation of the manuscript. Many
of our colleagues were quick to answer questions for us or to guide us to proper
sources in their particular areas of expertise. Colleagues from the Department of Hospitality Management at the University of New Hampshire have provided us with
numerous insights that have shaped this text in important ways. We are also grateful
to the professors who reviewed the previous editions and early drafts of this edition.
Their comments and suggestions have helped us immensely in the preparation of this
revision.
Anthony Agbeh, Northampton Community College, PA
Patricia Agnew, Johnson & Wales University, RI
James Bardi, Penn State University, Berks Campus, PA
James Bennett, Indiana University, Purdue
John Courtney, Johnson County Community College, KA
Linsley T. DeVeau, Lynn University, FL
John Dunn, Santa Barbara City College, CA
Susan Gregory, Colorado State University

Choon-Chiang Leong, Nanyang Technological University, Singapore
Marcia Hajduk, Harrisburg Area Community College, PA
Kathryn Hashimoto, University of New Orleans, LA
Jim Hogan, Scottsdale Community College, AZ
Lynn Huffman, Texas Tech University
Wayne A. Johnson, The Ohio State University
Soo K. Kang, Colorado State University
William Kent, Auburn University, AL
Frank Lattuca, University of Massachusetts, Amherst
Melih Madanoglu, Virginia Polytechnic Institute and State University
Brian Miller, University of Massachusetts, Amherst


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xix

Paul Myer, Northwestern Business College, IL
Daryl Nosek, Westchester Community College, NY
Kathleen M. O’Brien, Buffalo State College, NY
Esra Onat, Virginia Polytechnic Institute and State University
James W. Paul, Art Institute of Atlanta, GA

Howard Reichbart, Northern Virginia Community College
Denney Rutherford, Washington State University
Randy Sahajdack, Grand Rapids Community College, MI
Andrew Schwarz, Sullivan County Community College, NY
David L. Tucker, Widener University, DE
Many industry professionals assisted in the preparation of the text by providing
helpful input on particular sections or by providing us with supporting materials (including photos). Again, we will mention a few here who helped us, at the risk of not
mentioning all who helped. As always, the research published by the National Restaurant Association (NRA) forms, an important part of the food service chapters of this
book and, indeed, has influenced other portions of the text in important ways as well.
We are especially indebted to the Information Specialists Group at the NRA, which has
helped us time and again when information or a citation went astray. Further assistance was provided by the American Hotel & Lodging Association, Technomic, Inc.,
Smith Travel Research, and Hospitality Valuation Services International. Other individuals and organizations that provided information and support are identified in citations
throughout the text.
As always, Wiley’s editors have been most helpful, most notably Rachel Livsey and
Julie Kerr. Jacqueline Beach and Kim Nir are the production editors responsible for
shepherding an unwieldy typescript, rough illustrations, and a lot of pictures into the
book you hold in your hands and have done so with the utmost professionalism.
Clayton Barrows
Durham, New Hampshire

Tom Powers
Moon River, Ontario


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Page 1

PART ONE

Perspectives on
Careers in Hospitality


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The Hospitality Industry

(Courtesy of Four Seasons Hotel, Mexico, D.F.)



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CHAPTER ONE

The Hospitality
Industry and You
The Purpose of this Chapter
our own career choice is probably the most important management decision that you will ever
make—at least from your point of view. This chapter has been designed, therefore, to help you
analyze a career in the hospitality industry and correlate that analysis with your personal, professional, and educational experiences. It will also help prepare you for the first career decision you
make just before or after you graduate. This chapter discusses the career decisions that are ahead of
you over the next three to five years.

Y

THIS CHAPTER SHOULD HELP YOU
1. List examples of the kinds of businesses that make up the hospitality industry.
2. Identify the reasons people study hospitality management—and list the advantages these
academic programs offer.
3. Identify two key components of the job-benefit mix that allow one to profit from work
experience.
4. Name three general career goals frequently cited by graduates seeking employment.
5. Identify key trends driving change in employment opportunities in the hospitality industry.
6. Describe your career plan in terms of a life’s work and not just as an economic means of

survival.


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Chapter 1

The Hospitality Industry and You

What Is Hospitality Management?

W

hen most people think of the hospitality industry, they usually think of hotels
and restaurants. However, the true meaning of hospitality is much broader
in scope. According to the Oxford English Dictionary, hospitality means “the reception
and entertainment of guests, visitors or strangers with liberality and good will.” The
word hospitality is derived from hospice, the term for a medieval house of rest for travelers and pilgrims. Hospice—a word that is clearly related to hospital—also referred
to an early form of what we now call a nursing home.
Hospitality, then, not only includes hotels and restaurants but also refers to other
kinds of institutions that offer shelter, food, or both to people away from their homes.
We can also expand this definition, as many people have, to include those institutions

that provide other types of services to people away from home. This might include private clubs, casinos, resorts, attractions, and so on. This wide variety of services will be
discussed in later chapters.
These different kinds of operations also have more than a common historical heritage. They share the management problems of providing food and shelter—problems
that include erecting a building; providing heat, light, and power; cleaning and maintaining the premises; overseeing employees; and preparing and serving food in a way
that pleases the guests. We expect all of this to be done “with liberality and good will”
when we stay in a hotel or dine in a restaurant, but we can also rightfully expect the
same treatment from the dietary department in a health care facility or while enjoying
ourselves at an amusement park.
Turning our attention now from the facilities and services associated with the hospitality industry to the people who staff and manage them, let us consider the profession of the hospitality provider. The hospitality professions are among the oldest of
the humane professions, and they involve making a guest, client, member, or resident
(whichever is the appropriate term) feel welcome and comfortable. There is a more
important reason, however, that people interested in a career in these fields should
think of hospitality as an industry. Today, managers and supervisors, as well as skilled
employees, find that opportunities for advancement often mean moving from one part
of the hospitality industry to another. For example, a hospitality graduate may begin
as a management trainee with a restaurant company, complete the necessary training, and shortly thereafter take a job as an assistant manager in a hotel. The next job
offer could come from a hospitality conglomerate, such as ARAMARK. ARAMARK provides food service operations not only to businesses but also in such varied areas as
recreation centers, sports stadiums, college and university campuses, health care facilities, convention centers, and gourmet restaurants. Similarly, Holiday Inns is in the