THE HOSPITALITY INDUSTRY

THE HOSPITALITY INDUSTRY

The hospitality industry is a sector of the tourism industry that deals with guest service including
restaurants, hotels, meetings, catering, resorts, clubs and casinos. Tourism deals with travel away
from home and encompasses all service industry and travel-related industries concerned from transportation to entertainment, including attractions, food and lodging, marketing, planning and
development.
The industry is a contributor to global economy and a critical section of the services sector. The
industry faces various challenges in satisfying guests in order that a long-term relationship can be
created and there will be repeat sales. These challenges are caused by availability and quality of
alternatives, technology based service improvements and check-in/check-out, managing the total
experience, post departure follow-up, service management and ambience, creating a strong
image/parent brand, deciding hotel’s price point.

The task of providing effective guest relations most especially in the travel, tourism, hospitality
and allied industries is not an easy one. The most critical activity of such organizations wishing
to stay in business will centre on ways and manners of approach to dealing with its guests or
tourists. There are certain guest relations essentials that are necessary to understand in the
industry which include: initial contact, positive impressions, listening skills, effective
communication, problem solving, teamwork, follow-up. Guest relation is necessary in the
industry because they are to establish customer loyalty, develop business relationships, position
the internal operations of the business, create a positive environment to conduct business,
manage time effectively, minimize negative exposures, increase productivity, maximize sales
opportunities, manage customer satisfaction levels, communicate effectively, communicate a
positive message.

Hospitality sales and marketing challenges are: courteous, well-trained and cooperative staff,
housekeeping efficiency, food and beverage services, personalized services, concierge services,
racial profiling by security personnel, creating a strong brand image, managing customer
feedback, sales channel: direct and indirect distribution, efficiency in check-in and check-out,
managing the total experience, managing auxiliary services, attributes of the hotel, ambience of
the hotel, view from hotel rooms, internet facility, deciding the hotel’s price-point: pricing of
auxiliary services.
Marketing tourism product is different from most other product because what is being sold is
consumption of an experience rather than a tangible product. The product is primarily service
based. This means that customer often walks away from the tourism offering with only a memory or experience.

The sales and marketing department is responsible for generating new business for hospitality and tourism industry. This could be sales of rooms, functions, conventions or even restaurant and bars. It also handles the advertising of the industry as well as sales promotion and publicity and often takes on the role of public relations. Recently, many modern hospitality and tourism industry have been springing up with new standards of comfort, structural designs and infrastructural facilities, new management and organizational skill, manpower orientations and financial strength. Above all they have aggressive marketing policy. This makes the industry to be rather competitive. The industry should therefore have a sound vigorous sales and marketing policy to enable it not only to acquire and consolidate a share of the market but to penetrate and capture new markets, that is win new customers. Hence, applying the most energetic marketing strategy will generate increased demands for hospitality and tourism products and satisfy both
domestic and international customers.
Sales and marketing is thus a speculative risk anticipating higher returns on the investment. Such risks are fundamental and innovative in nature. The reward of a good risk is profit. Marketing and sales are separate functions within an organization.

Market knowledge of marketing and sales is the extent to which a typical employee in marketing and sales is knowledgeable about customers and competitors. Product knowledge is the extent to which a typical employee in marketing and sales is knowledgeable about products and internal processes.

 

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