Welcome Introductions

What is expected

Review Syllabus

Teamwork

Assignments & due dates

Site inspections

Part of the grade

Attendance

Participation

5 Quiz (10 questions)

Drop one

Down load from syllabus

Site Inspection required

Down load from blackboard or www.mtconsults.com

Your responsibility to have a copy of the Syllabus

Bring to class next week

Review Syllabus

Motivators of Travel1. Commerce - early motivator of travel

2. Romans - 1st to travel on land on large scales.

Their desire to discover/conquest resulted in massive road building.

They also traveled for pleasure as well

3. Organized religion started many pilgrimages.

4. Marco Polo - 12th Century

Popularized long distance travel & trade

He was intrigued by the large abundance of food in the far east, in particular all the noodle shops. PASTA!

Motivators of Travel

5. 13th century – trade was the primary reason for travel

WHY?

magnetic compass

maps

6. 14th century - Travel for cultural/artistic reasons became popular

7. By the 17th Century

The Pineapple became the official symbol of the Hospitality Industry.

1. What are some of the early

motivators of travel and who

are some of the people that

impacted travel?

Answer1. Trade

2. Commerce

3. Organized Religion

4. Marco Polo

5. Magnetic Compass

Transportation

Revolution

Steamships

17th/18th Century

connected Europe & Americas - Cruise liners

Railroads

England 1804 – comprehensive rail system

Thomas Cook – 1841

Made arrangement for 570 people to go to a temperance meeting

1st travel agent

Late 1800 USA

Automobiles

1. 19th century

horses were for short distance,

trains & ships for long distance

2. 1867

Bicycles were invented

introduced at the Paris worlds fair of 1867.

Paved roads were build for bicycles and surprisingly bicycle manufacturers

made the first cars.

3.1st steam engine came from France Heavy tricycles powered by steam

4.1st gas engine came from Germany

5. Henry Ford- 1908, 1st model T

His dream was that every family in America could own a car.

Suburbs became popular around 1920‟s

Airplanes new form of Transportation British – 1919

Paris to London

1918 - USA Postal Service

Pan Am -1927- DC-3 1st passenger flight EWY-HAV

9.8 miles(52,000ft)

Their importance and role in Tourism and

destination marketing

Every major destination globally has a bureau,

chamber, or tourism center.

1. 1st Inns were probably private homes - Greeks-500 BC. No one knows for sure,

2. Middle ages – Inns were built along highways

Most likely of questionable reputations

3. 17th Century - Inns were well established in England & the Continent

Important social & political gatherings

The word “hotel” was first used in England -1760

4. 1794 -1st hotel in USA, 70 rooms, City Hotel in NYC

5. Pioneers of Lodging

a) Cesar Ritz

b) His friend, Auguste Escofier, was a famous chef who latter became well known for his kitchen Management techniques.

1. 17th Century

a. Full scale restaurants began on both sides of the Atlantic

b. Louis XIV, France, prepared food on large scale

c. Thomas Jefferson (while ambassador to France)

learned to appreciate good French food and wine

introduced them to White House functions when he became President

d. 1832, 1st continental restaurant opened in NY- Delmonico’s

2. Pioneers:

a. 1875, Frank Harvey opened 2 restaurants along the Railroads

b. 1925 - Howard Johnson - Ice cream chains

Became know as the first Franchisor

c. Ray Kroc - The Big Mac

2. Interrelationships - Hospitality businesses have symbiotic relation.

A mutual dependency: cars, boats, hotels, restaurants, attractions etc.

3. Why people travel - to gather information

Motivators

Recreation, Culture, Business, Health, Interpersonal, status, prestige

4. Social and Environmental impact on the Industry

Good/Bad - Ecotourism

Technological advances, growing populations, aging population, wealthier population

increased leisure time, seasonality less important, ecotourism growing

World changes that affect the industry

1. Major Changes

1. Who are the pioneers of the food

service and what role did they play?

Answer1. Frank Harvey – restaurants along RR.

2. Howard Johnson – 1st Franchisor

3. Ray Kroc - most Famous Franchisor

2. What are some of the reasons

people travel?

Answer1. To gather information

2. Prestige

3. Health

4. Status/interpersonal

• Types of Services

• Service business

• Keys to good service

• Interviewing Techniques

• Management & Careers

1. Definitions:

Service: work done for others

Good service: service that meets customer needs in the way that customers want and expect them to be met

Exceptional Service: Service that goes over and above what the customer wants and expects

2. Types of Customers: Internal & External

3. What is the product? INTANGIBLE

4. Moments of Truth & Cycle of Service

5. Strategic Planning2. Do a SWOT analysis: Strengths, Weaknesses,

Opportunities, Threats.

6. Formulate Strategies: Long or short term

What is the difference between a Service and a Manufacturing Business?

1. The Nature of the product is different

2. Customers are more involved in the product

3. People are part of the product

4. It‟s harder to maintain QCS

Quality control standards

5. Services can‟t be inventoried

6. Time factors are important

7. Distribution channels are different

How?

Don‟t forget who you are

Encourage every employee to act like a

manager

Handle moments of truth correctly

Hire good people and keep them happy

Respond in a timely manner

Research the Employer

Dress well and Conservatively

Demonstrate Confidence

Sell Your self

Ask Questions

Communicate clearly

Ask for the job

Write a follow up letter

Lodging Opportunities

General Manager

Food & Beverage Mgr

Catering Mgr

Controller

Human Resource Mgr

Marketing/Sales Mgr

Resident Mgr.

Chief Engr. / MIS Mgr.

Food Service Opportunities

General Manager

Dining Room Mgr

Beverage Mgr

Executive Chef

Sous Chef

Banquet Mgr.

Maitre d‟

1. Better training• Gain valuable education &

experience

2. Advancement Opportunities• More areas to climb up

3. Better Benefits• Life & health insurance

• More generous vacation &

sick time

US is the lowest

• Better retirement plans

• Perks, perks, perks

Large Chains

1. Greater Creativity Opportunities to initiate

change & set new standards

2. More Career Control Better networking

relationships with people who

can help your career choices.

3. Better Learning Environments More responsibility means

more knowledge & more

hands - on training

Independent

• More career options than most industries

• Varied work responsibilities

• People-oriented work

• Highly flexible hours

• Room for long term career growth

• Perks

Advantages

• Long hours/Pressure

• Nontraditional schedules

• Low starting salariesDisadvantages

1. Give some examples of:

Service

Good Service

Exceptional Service

2. Explain and give examples of

intangible product.

Full Service Facility

12 0r more items cooked to order

Limited Service Narrow selection of food

Convenience, speedy delivery

Segments in the Restaurant Industry

Eating and Drinking Places – largest segment of the industry

Lodging Operations - coffee shops to gourmet

Transportation Market - airplanes, ships & trains

Recreation Market - stadiums, race tracts, etc.

Business and Industry Market - employee cafeteria

Student Market - a la carte

Health Care Market - non patient food market

Retail Market – catering, takeout, delivery

Corrections Food Service - prison, local jails

Military Food Market - Army, Navy, Air Force, Space

Contractors - CVB, attractions, etc

Why do Restaurants Fail?A. Lack of Business knowledgeB. Lack of Technical knowledgeC. Lack of working capital

Strategies for a Successful RestaurantA. Do your homework before you startB. Survey and plan

Target market• families, business, tourist, etc

Breakfast, lunch, dinner, Takeout delivery, Hours of Operation Competition

Organizing for Success1. Guests - wants and needs- market it!

2. Ambiance - décor, furnishings, service, personality

3. Menu - basic rules

standards receipts, equipment, fill guest needs

Fixed and cyclical

Financial and Operational ControlsBalance sheet, income statements

a. fixed, variable expenses

b. food cost percentage & how calculated cost of food sold/food sales = %

Rules for creating menus

Give guest what they want

Use standard recipes

Take staff‟s abilities into account

Provide variety & Balance

Take the season into account

Keep nutrition in mind

Use food wisely

Menu Categories Fixed

Cyclical

Breakfast

Lunch

Dinner

Specialty

Food Cost

Control

Menu planning

Forecasting

Purchasing

Receiving

Storing Issuing

Producing

Serving

Customer payment

Cost analysis

Décor

Lighting

Furnishings

Tableware

Menu

Service methods

Servers & other employees

Other guests

1. Give some examples of “Full Service” and limited restaurants

AnswerFull Service

• Fridays

• Chilies

• Azul

• Don Shula‟s Stake House

Limited

• Wendy‟s

• McDonalds

• Burger King

2. Who has the #1 liquor license in

Miami?

Changing Demographics

Growth in population,

Middle-aging of America (baby boomers),

Increase in women workers,

Geographically shifting work force,

Rise in the educational level,

Diversity in the work force.

What Causes High Turnover

Inefficient hiring system

Limited opportunities

For advancement, lack of training/supervision

1. Truly cares about employees

2. Defines the job Job analyses

documents used to help employees understand and learn job

Job lists,

Breakdown

description

3. Sets productivity standards how long to complete task,

how much work in a given period

4. Recruits suitable candidates - internal/external

5. Selects the best applicants • receive /process applications,

• interview, evaluate,

• check references,

• hire selected person

6. Implements ongoing training programs

7. Motivates employees • fear of failure,

• fair wage,

• incentives & rewards,

• open door policy/informed

8. Evaluates employees

1. Fair Labor Standards Act (FLSA)

• Passed-1938, service industries were exempt until 1967, by 1979 all provisions were in force. Covers minors, overtime, wages, equal pay.

2. Civil Rights Act of 1964 (CRA)

• Bans discrimination against race, sex, religion, creed.

3. Equal Employment Opportunity Commission

• Enforces CRA and expanded to cover sexual harassment

4. Occupational Safety and Health Act of 1970 (OSHA) Safety

5. Americans With Disabilities Act of 1990 (ADA)

6. Family and Medical Leave Act of 1993

• at least 12 weeks off without pay

7. Illegal Immigration Reform and Immigrant Responsibility Act of 1996

• Laws regarding illegal aliens

1. Why is it important to have a good Human

Resource Management Department?

REVIEW QUESTIONS

The World of HotelsHotel Guest Segments

Corporate individuals & groups

Conventions and Associations

Leisure and airline related

Long term stays/relocation guests

Government and military

Regional getaway guests

Know your guest mix

1. Hotel Categories

Center city, Suburban, Highway, Resort, Airport

Conference centers, condos, timeshare, All suites, Senior

Housing (e.g. Independent living, Congregate

communities, Assisted living & Continuing care).

2. Chain and Independent Hotels

3. Economy and Budget

4. Price or segmenting

budget,

mid price,

1st class,

luxury

The World of Hotels

Six forms of hotel ownership/operation Independently owned/operated

Independently owned & leased to operator

Owned by an entity/group, operated by Management Companies

Owned & operated by a chain

Owned by Independent Investor/group, operated by chain

Owned by Independent/group, operated as a franchise of a chain.

Feasibility Study:

Market area characteristics

Site/area evaluations

Competitive/Demand Analysis

Proposed facility / services

Financial estimates

The World of Hotels

1. Hotel Revenue Centers Rooms

Food & Beverages

Telecommunications

Concessions, Rentals & Commission

Fitness & Recreation

2. Hotel Cost Centers Marketing

Engineering

Accounting

Human Resources

Security

Hotel Organization

Why Management Companies Exist

To provide needed hotel management expertise to

inexperienced hotel owners.

Evolution of the Management Company In 1970 there were fewer than 10 management companies operating

about 22 properties. Look at it today!!!

Real estate investors and individual groups who built hotels and didn‟t

know much about them needed experienced hotel managers to run

them.

They started out with a 2/3rd – 1/3rd lease agreement: 2/3rd of the gross

operating profit went to the owner and 1/3rd to the hotel company.

Now, management companies are usually part owners of the hotels,

they manage. (see page 459-top 15 companies)

Management Companies

Types of Franchises - started in the 1950‟s

Product or Trade Name – supplier/dealer arrangemente.g. Auto‟s, Gas Stations, Soft drink Industries

Business format - ongoing business relationshipe.g. Restaurants an lodging chains

Definition: the authorization given by a company to another company or an individual to sell its unique products and services.

How Franchising Works

Initial franchise fee, ongoing fees

Regulations: In the US franchising is regulated by the Federal Trade Commission.

Franchising

FranchisingAdvantages

• Site selection Assistance

• Credit

• Construction expertise

• Fixture/equipment assistance

• Training

• Opening Support

• Promotional assistance

• Economies of scale

• Ongoing support

• Quick expansion possible

• Little or no capitol required for expansion

• Franchisees shoulder investment risk

• Unit owners connected to local community

Disadvantages

• Restrictions

• Unwanted products or procedures

• Unwanted advertising

• Unprotected territories

• Cancellation

• Inadequate training

• They give up the profits generated by the franchise units

• They give up some control

1. Operating Term

• Length of contract was 20 years,

• Now about medium of 12 years.

• Management companies usually prefer a long initial period while

the owners prefer a shorter initial period.

2. Fee Structure

Negotiable, outlines fees owner must pay to operators managing their

properties.

3. Reporting Requirements

Types of reports/frequency

4. Approvals

What areas need approval

e.g.. General Manager, Controller, Sales etc.

Management Contract

5. Termination

Provisions regarding both parties.

Examples: non performance of a contract provision by the other party, One of

the parties filing bankruptcy, one of the parties causing a licenses to

be revoked or suspended.

6. Operator Investment

Know what you have to invest

7. Operating Expenses

Know what you are responsible for

8. Other provision

see page 466

Management Contract

1. Why do hotel use management companies to

operate their hotel?

AnswerFull Service

• Fridays

• Chilies

• Azul

• Don Shula‟s Stake House

Limited

• Wendy‟s

• McDonalds

• Burger King

1. Is it better to Franchise or independently own

a hotel?

AnswerFull Service

• Fridays

• Chilies

• Azul

• Don Shula‟s Stake House

Limited

• Wendy‟s

• McDonalds

• Burger King

Membership dues

Initiation fees

Assessments

Sports activities fees

Food and Beverage Sales

Other sources

Traits1. Effective at interpersonal Relationships

2. Dedicated

3. Lots of Integrity

4. Organized; good administrators

5. Creative, visionary

6. Intelligent

7. Professional

8. Good communicators

9. Strong leaders

10. Experienced in the club industry

Background on Clubs› people of like interest

I.e. recreational, social, fraternal, professional

Types› City (athletic, social, professional, University, dining)

Country Clubs , Other Clubs: yacht – military - fraternal.

Club Operations› Revenue - Memberships, F & B etc.

› Expenses - payroll etc.

Controls› Accounting systems etc.

1. What makes a club successful?

AnswerFull Service

• Fridays

• Chilies

• Azul

• Don Shula‟s Stake House

Limited

• Wendy‟s

• McDonalds

• Burger King

1. Planning the meeting itself

What is the objective of the meeting/event?

How do you want to schedule this meeting/event to

enhance your objective?

What kind of format do you want to use?

2. How important is choosing the location?

3. How important is choosing the facility?

1. Meeting Planner-In house or Independent

2. Meeting Coordinator

3. Exhibits Manager

4. Hotel Sales Manager

5. Conference Service Manager

6. Catering Manager

7. Careers in CVB‟s and Chambers

8. Tourism career in other countriese.g.. Bermuda, Bahamas, Caribbean Islands, South Pacific, Artic, Antarctic, Europe/Asia, …, etc.

9. Exhibitors/Designers

Who holds meetings and why?

A. 2 siblings having a luncheon discussing how they want to handle their parents 25th wedding anniversary.

B. A planning committee of 7 organizing a political convention of 57,000 people.

WHY?

They want it to be the best it can be.

C. What are the Types of Meetings in this industry? Association

Corporate

Trade show/Expositions

1. Why would you want to hire a Meeting Planner?

AnswerFull Service

• Fridays

• Chilies

• Azul

• Don Shula‟s Stake House

Limited

• Wendy‟s

• McDonalds

• Burger King

1. Why would you want to hire a Meeting Planner?

AnswerFull Service

• Fridays

• Chilies

• Azul

• Don Shula‟s Stake House

Limited

• Wendy‟s

• McDonalds

• Burger King

Early Cruises - 1920-1950

Transportation- immigration

Modern Cruises - mid-late 60’s

Carnival, Royal Caribbean, Princess

Cruise Ship Organization & Responsibility Captain

Hotel Manager

Cruise Director

Flag of Convenience- Registry & Laws

1. The Story of Gaming China 2300BC - first recorded

2. Types of Casinos table/slots

most profitable- slots

3. Casino Operations Terminology, employees, customers

4. Casino Marketing, Controls, Regulations

5. Careers Opportunities

What is it? - Think about a conductors job!!!

“Creating a true whole that is larger than the sum of its parts”

“Harmonize in every decision and action the requirements of

the immediate and long-range future” Peter Drucker

The Manager’s Job

Manager’s basic tasks1. Setting objectives

2. Organizing

3. Measuring Performances

4. Motivating and Communicating

5. Developing people

Attention through vision

Meaning through Communication

Trust through positioning

Self - development

A combination of background, dreams & instincts

Getting everyone to share the dream & ideas

Constant & steady course in the right directions

Strengths/weaknesses

1. Director Role

2. Producer Role

3. Coordinator Role

4. Monitor Role

5. Mentor Role

6. Facilitator Role

7. Innovator Role

8. Broker Role

Decisive initiator

task oriented

smooth flow

people comply with rules

understanding

team building

implement change

building Power base

6. Quality Focus School Break down barriers/ managers and employees

1. Classical SchoolFrederick Taylor, Founder

• Scientific-Only one best way

to do every job

2. Behavioral SchoolAbraham Maslow

• People want to work so motivate

• Hawthorn Studies

3. Quantitative School • Integrate 1 & 2 Theories

4. Systems School • System of many interrelated part

• 1 part helps other parts

5. Contingency School • Every Manager/Situation Different

Marketing - having what people want

Selling - getting rid of what you have

4 “P’s of Marketing

1.Product - What do you sell?

2.Place - Where do you sell it?

3.Price - What did you sell it for?

4.Promotion - How do you spread the word?

1. Situation Analysis consists of:

Marketplace & competitive analysis. A review of internal data.

A target profile audience & a problems & opportunity section

2. Objectives:

Clear concise descriptions of exactly what managers want the

marketing program to accomplish.

3. Strategies:

Simple descriptions of how the organization will go about trying to

achieve its marketing objective.

4. Tactics:

A real marketing plan contains tactics for every strategy.

5. Controls:

To enable managers to monitor how well the plan is working &

make adjustments when necessary.

1. The Sales Manager- DutiesIncrease property revenue

Sales calls,

Establish guidelines,

Assist GM with obtaining maximum sales efforts from employees,

Hold sales meetings,

Maintain sales reports,

Establish a sales filing system.

2. Basic Qualities of a Sales Person Courtesy,

Appearance,

Knowledge of product,

Willingness to work,

Personality,

Intelligence,

Learn to not take rejection personally.

3. Understand/ Recognize Personality Types Amiables

Executives

Drivers

Analyticals

4. Sales call consists of 6 steps Prospecting & Qualifying

Preparation & qualifying

Overcoming objectives

Asking for the Sale & Follow up

A. Communicate through Advertising It is paid for by the sponsor, it is impersonal, it identifies the

sponsor, it persuades

Creating Effective Advertising

B. Choosing Advertising Media TV, Radio, Newspaper, Magazines, Direct Marketing

C. 3 Broadcast Ad Strategies make„em laugh, make„em bond, find out what they really

like

D. Public Relations techniques companies use to improve relationships with

their various publics

E. Publicity Free mention of a company by the media

1. What is Ethics? A set of moral principle and values that we use to

answer questions of right and wrong.

2. Social Responsibility & Business Ethics is honesty the best policy?

Business must be conducted according to rules for

everyone‟s protection.

3. Ethical Issues environmental, discrimination, sexual harassment, AIDS, AD

claims, truth-in-menu laws

4. Code of Ethics- Litmus Tests Is it legal

Is it balanced

How will it make me feel about myself

1. Sample Moral Viewpoints Deontology: There are basic or universal ideals that should direct

our thinking

Utilitarianism: No universal ideals- ethical behavior consists of seeking the greatest good for the greatest number

Ethical relativism: No universal ideals- each situation must be judged in its situation or cultural context

2. Ethical issues in the industry Environmental,

discrimination,

Sexual harassment,

AIDS,

• Ad. Claims,

• Truth in menu laws

3. Sample Moral Viewpoints Deontology: There are basic or universal ideals that

should direct our thinking

Utilitarianism: No universal ideals- ethical behavior consists of seeking the greatest good for the greatest number

Ethical relativism: No universal ideals- each situation must be judged in its situation or cultural context

4. Ethical issues in the industry Environmental, discrimination, Sexual

harassment, AIDS, Ad. Claims, Truth in menu laws