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University of Guelph
Hospitality and Tourism Management
HTM 1000
Val Allen

Chapter 1 Total Quality Management (TQM): Continuous process that works best when managers are also good leaders; error prevention Quality Control (QC): Error detection Empowering Employees  Take risks  Delegate  Foster a learning environment  Share info/encourage self-expression  Hospitality/Tourism is the largest and fastest growing industry  Common dynamics include delivery of services and guest impressions of themselves  Open 365 days a year 24/7; shift work  Selling intangible and perishable product  Pineapple: welcome, friendship  Industry caring for others, ensuring guests receive outstanding services Chapter 2 Tourism: Idea of attracting, accommodating and pleasing groups/individuals traveling for pleasure or business.  Involves international and interaction World Tourism Organization(UNWTO): Environmental protection, tourism development, immigration and cultural/social aspects of tourist Pacific Area Travel Association (PATA): Association for the promotion of excellence in travel within, and to and from the pacific region Benefits of Tourism Provides increased revenues as well as prospective employees/entrepreneurs with an increase opportunity Affects industry sectors such as transportation, lodging, foodservice, entertainment and recreation. Multiplier effect  Money that is brought into a community that pays for hotel rooms, restaurants ect.  To some extent, that income passes into the community when the hotel/restaurant order supplies and services pay employees ect. Ch.3 World Tourism September-18-11 8:59 PM Pleasure travelers Business travelers:  meetings; for sales, corporate, regional, product and others  conventions; trade shows and expositions Tourism provides an opportunity for many social interactions Eg. London pub or New York café Sustainable Tourism & Ecotourism Sustainable Tourism Broad-based obligation on society- impact on planning/developing on the federal, state and local government to harmonize tourism/development by improving the quality of its environment and resources Ecotourism Responsible travel to natural areas that conserves the environment/sustain the well-being of local people.  Focused more on individual values.  Found more likely in developing countries; desserts, rainforests E.g: Principles (TIES)  Eco tourists - Minimize Impact  Government involvement - Build environmental/cultural awareness  Natural environment protection - provide positive experiences for victors/hosts  Economic considerations - provide financial benefit for conservation  Education - support international human rights/ labour agreements Environmental Impact of Tourism  Natural resources threatened/seriously distributed by poor management; demand of seafood in Caribbean  Superstructure/infrastructure overused becoming harmful to environment  Pollution  Impossible to meet growing capacity requirement Cultural Tourism: motivated wholly or part of interest in the historical, artistic, scientific or lifestyle/heritage offerings of a community/group United Nations Education, Scientifics, and Cultural Organizations(UNESCO): encourages international peace/universal respect by promoting collaboration among nations Heritage Tourism: Tourism motivated by historic preservation- a combination of the natural, cultural, and architectural environment.  Challenge in heritage tourism: ensuring visitation does not destroy the qualities that attract tourists Four Steps to a comprehensive heritage program  Assessing the potential  Planning and organizing  Preparing, protecting and managing  Marketing for success Nature Tourism: motivated my nature such as visits to national parks Lodging ch 4 September-18-11 9:00 PM Franchising: allows a company to expand using other peoples money, rather than own financing  Follows guidelines from franchisor  Began in the united states 1907--- The Ritz Carleton  Cecil B Day made motels and hotels cheaper Franchising Trends  Fresh looks  Location-near highways, airports, and suburbs  Expansion in smaller cities throughout the U.S  Foreign expansion Benefits of franchisee  National ads  Centralized reservation system  Participation in volume discounts for purchasing furniture, fixtures ect  Low fee percentage charged by cred companies Drawbacks to franchisee  High fees  Central reservations between 17-26 percent  Franchisees must conform to the franchisors agreement  Franchisees must maintain all standards Benefits of franchise company  Up front fees  Increased market share/recognition Drawbacks of franchise company  Careful of franchisees selection  Difficulty maintaining control standards Management contracts: responsible for the hotel industry's rapid boom since 1970s  Contracts range from the percentage of operating profit and total sales(pg.79)  Property period 5, 10, 20 years Type of Locations of Hotels City centre Hotels; meet the needs of traveling public for business/leisure Airport Hotels Freeway Hotel/motels; reasonably priced with few frills Casino Hotels; make more money from gaming rooms also making it family friendly Convention Hotels; meet needs of groups attending/holding conventions Full-service Hotels; offer wide range of facilities, services and amenities Economy/Budget Hotels; reasonably sized/furnished rooms without frills Extended-Stay Hotels; long term guests that take advantage reduced rates All-Suite Extended-Stay hotels; offers 25% more space for the same prices As a regular hotel Condotels; build hotels to sell as condos Mixed-use Hotels Bed and Breakfast Inns; began in Europe as an overnight lodging in a private home Resort Hotels; originally to accommodate clients that the railways brought(p88) Vacation ownership: by purchasing a unit/condo for a period of weeks Adv. only pay a one time purchase price(no inflation)  Provides the space and flexibility; 3 + bedrooms Provide on site sporting, recreational, social activities   Time shares known as fastest growing sectors of travel/tourism Dis. 'locked in' to the same time frame year  Maintenance feeds increase with time/must be paid Best Hotel chains---- Canadian owned four seasons and the Ritz Carleton Sustainable lodging  Reducing waste, sustainable lighting and water conservation  Low flow energy showerheads low wattage lighting E.g. Fairmount hotels and resorts Ch.5 Operations Executive Committee: include key associates who head major departments such as room division director, food/beverage director, marketing/sales director ect Role of hotel General Manager  Keep guests satisfied, employees happy  Provide owners with reasonable return on investment The Departments Front office: provides info/ services--- outstanding guest services City ledger: a special account for a company that has established credit with the hotel Night auditor: balances the guests account receivables Average Daily Rate: Rooms revenue/# of rooms sold Room Occupancy Percentage (ROP): room occupancy/ rooms available Property Management Systems  Helps hotels to accept, store and retrieve guest reservations/history  Reservations management  Rooms management Guest account management  Rack rate: published rate the hotel would like to get for a room Housekeeping: largest department with staff Concierge: assists guests with a range of entertainment services, restaurants, shopping Food/Beverage Management: responsible for the efficient/effective operation of  Kitchen/catering/banquet  Restaurants/room service/minibars  Loungers/bars/stewarding Catering Department CEO: Prepared/completed for each function to inform not only clients but also the hotel personnel about essential information Room service/in room dining Energy star  Joint program of the U.S Environmental Protection Agency and the U.S Department of Energy Green seal, hotel recycling, water conservation, bathroom amenities ect Sustainable lodging  Reduced material/energy intensity of goods/services e.g. the American hotel and lodging association  Find new opportunities to improve operations through education, employee ideas and guest feedback  Going green reduced costs which helps to provide enhanced services Cruising CH 6 First Cruise Ships  The Quaker was first ship to sail in 1867 NYC  White star line ships: the Titanic, Olympic and Britannic Key players in cruise industry  Carnival cruise lines (20% of sales)  Royal Caribbean Cruises; operates Royal Caribbean international & Celebrity cruises  Norwegian Cruise Line Cruise Line International Association: states the average cruise passenger is 46 year old, married, no children  Caribbean is most popular cruise destination in the world Types of Cruise Markets Mass Market: avg. cost per day per person $100 Middle Market: avg. cost per day per person between 250 and 500 Luxury market: more than $500 per day per person Chief purser: part of hotel operations department on cruise; supervises all other departments on board (exception board/deck) Cruise director: in charge of all onboard entertainment and activities Chief steward: supervises housekeeping department Sustainable cruising  Hydrogen powered ships  e.g. cruise line international association  Asking passengers to conserve; reuse towels, shortened showers  Cruising industry has cut waste by half  Use of new gas turbines as well as turning off engines Example of a sustainable ship Orphalese: recycles, treats wastewater, GPS to prevent anchor dropping on coral, LED Lighting, Biodegradable cleaning items, water efficient washing machines Restaurants ch 7 September-18-11 9:00 PM Independent Restaurants: A non franchise restaurant, privately owned Chain Restaurants: Restaurant that is one of a chain of restaurants  Most popular meal eaten out is lunch brining in 50% of food sales Culinary Legacy: Two main events  French revolution 1793 best chefs lost their employment when their bosses lost their heads Thomas Jefferson brought a French chef to the White House encouraging interest in French cuisine/enticed US tavern owners to offer better quality/interesting food Franchises  Proven/unlikely to fail so less risk compared to opening a standalone restaurant Drawbacks  Initial franchisee can cost between 20 000 - 40 000 more  Avg. restaurants construction costs 100 000 +  Royalty payments must be paid for as long as proprietor owns franchise are a percentage of sales  Charge for marketing/advertising (2%)  Franchise offers limited flexibility/creativity b/c owner must comply with the terms of franchise Fine dining  offers a good selection of menu items of at least 15 or more different entrees  High quality service  Fusion: blend of two cuisines  Operated by entrepreneur/partnership Theme restaurants: combine a sophisticated specialty with another type of restaurants Celebrity restaurants: very popular; Naomi Campbell, Claudia Schiffer, Elle Macpherson, Peter Fonda Steakhouses: add valued prices items like chicken/fish to menus to attract more customers  e.x. Longhorn steakhouse chain has 323 units owned by Darden Restaurants Casual Dining  Midscale casual restaurants; Romana Macaroni Grill, the olive garden  Family restaurants; Cracker Barrel, Coco's  Ethnic restaurants; flavor Thai Dinner house restaurants: leans toward more casual dining, may promote a theme Family Restaurants: offer informal setting with a simple menu/service designed to please the entire family Ethnic restaurants: independently owned providing something different for the adventurous diner/taster of home for those of the same ethnic background as a restaurant(p.153) Quick service restaurants: consist of diverse operating facilities whose slogan is "quick food"(hamburgers, chicken, pizza) found in convenient locations  To raise flat scale figures, more quick service restaurants using co-branding at stores/ non- traditional areas MacDonald's  is he giant of quick service/ fast-food segment ( 118 countries, 3.2 billion ppl)  Rapid expansion worldwide with china with 12 000 restaurants nationwide  Serves 58 million people a day  50% of profits received outside the US Pizza  Pizza hut; 7500 system-wide sales of $5 billion  $21 billion market, growth fueled by delivery Chicken Cheap to produce, readily available and adaptable to a variety of preparation   KFC: 15 000 units in the U.S, 36 000 around the world ( part of Yum Brands Inc. which is the worlds largest restaurant company  KFC with Sales of $11 billion Sandwich restaurants  Popular way for young entrepreneur to enter restaurant business  Subway is the leader with more than 20 000 units in 75 countries  Strategy of investing half of the chains ad dollars in national advertising Green Restaurants Certification 4.0 Standards  Comprehensive and user friendly method of rewarding existing restaurants/foodservice operations, new builds, and events with points in each of their 7 environmental categories Water efficiency   Waste reduction/recycling  Sustainable furnishings/building materials  Sustainable food  Energy  Disposables  Chemical/pollution reduction  Award 2, 3 or 4 stars according to the number of points they have Ch. 8 RESTAURANT OPERATIONS Restaurant Operations: divided into two sections  front of house: creating and maintaining curbside appeal(attractive/welcoming), parking lot, including flower gardening  back of house Suggestive selling: servers introduce themselves/offer a variety of beverages and/or special, or invite guests to select from the menu Busser/servers: greet guests, introduce/suggestively sell beverages, suggest appetizers, take orders, ask if guests want another drink, bring out dessert tray  check to see that everything is to guests liking within two bites od entrée Restaurant forecasting: used to calculate sales projections and predict staffing levels/labor cost percentages  Has two components: guest counts/covers and average guest check  Guest counts/covers are the number of guests patronizing the restaurant over time period  Average guest check: calculated by dividing total sales by number of guests Service American service: method in which food is prepared/decoratively placed onto plates in the kitchen, carried into dining room, and served to guests (less formal, yet professional e.g. Splendido has increased training hours from 40 - 100  French service/Russian service p.166 Back of the House  Run by kitchen manager and refers to all the areas that guests do not normally come in contact with  Purchasing, receiving, store/issuing, food production, stewarding, budgeting, accounting and control  Efficiency: staffing, scheduling, training, food, costs analysis, production, management involvement, management follow up, and employee recognition Food production  Determining expected volume of business for the next few days Cooking line most important :broiler station, pickup area, fry station, salad station, pizza station   Fridays five rule of control for running a kitchen; order/receive/ store it well, make it to the recipe, don’t let it die in the window Production control sheets: checklist/sheet itemizing the production in steps  Used for each station/ important to make before calculations before cooks arrive  Levels are set up each day according to sales  Critical in controlling how the cooks use the products, since production plays a key role in food cost Management: should be consistently be walking and talking food costs, cleanliness, sanitation and quality Purchasing: procuring the products and services that the restaurant needs in order to serve its guests  Standards for each item  Systems that minimize effort/maxim
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