Hospitality Sector

The hospitality sector encompasses businesses providing services like lodging, food, travel, and tourism. It’s crucial due to its significant contribution to the economy, job creation, and its role in cultural exchange and customer service enhancement, making it a vital component of global economic and cultural infrastructure.

Key Takeaways

  • Hospitality Diversity: Encompasses accommodations, food and drink services, and travel and tourism, each essential for guest satisfaction and overall experience.
  • Sector Services: Highlights various service categories like hotels, motels, hostels, resorts, restaurants, bars, and travel agencies, each playing a unique role.
  • Importance and Trends: Stresses the hospitality sector’s economic impact and evolving trends, including technology integration and customer experience enhancement.
  • Economic Contribution: Discusses the sector’s role in job creation and economic growth, highlighting its global economic significance.
  • Customer Expectations: Examines the evolving expectations of customers in the hospitality sector, emphasizing the need for quality, customization, and memorable experiences.

Table of Contents:

Extra: The Impact of the Corona Crisis on Hospitality Sector

Introduction

What aspects serve to define the hospitality industry? While many will provide common answers, such as accommodations and logistics, the single factor which underpins the entire concept involves customer satisfaction. Let us take a look at the different facets of the hospitality sector in great detail to appreciate its true scope.

What is the Hospitality Industry?

We have all heard of this term, yet it is quite vague to those unfamiliar with the sector. Hospitality is one facet of the service industry. It primarily involves addressing customer satisfaction and catering the needs of guests. This can be addressed with lodging, amenities, and travel arrangements. However, it is still important to break the concept of hospitality into three sections for brevity and clarity. These concepts are undoubtedly already familiar to you:

  • Accommodations
  • Food and drink
  • Tourism and travel

Let’s now go ahead and take a look at each one in greater detail to appreciate the “bigger picture”.

An Overview of All Hospitality Sectors

1) Accommodations

Accommodations within the hospitality industry primarily involve where guests will be staying and the amenities they are provided with. From luxury properties to budget hotels and hostels, each location is intended to suit your discrete needs. It can be argued that accommodations represent the veritable backbone of the hospitality sector. As a result, management will place a great deal of emphasis on what they have to offer.

Bed and Breakfasts

Bed-and-breakfast establishments combine a sense of convenience with a down-home flavor that is attractive to many individuals, particularly those who are constantly on the room. These tend to be smaller boutique properties, yet their presence within the sector cannot be understated due to the many existing locations.

Hotels

Hotels (both franchises and boutiques) are the most well-known properties within the hospitality sector. From brand names such as Hilton and Radisson to smaller brick-and-mortar establishments, guests expect to be provided with services and amenities equal to the price they paid for the room in question. Hotels contribute billions of pounds in revenue to this industry every year.

Motels

Known for their sense of mobile convenience, business travelers frequently employ motels and those who are looking to enjoy budget-friendly prices while between two destinations. Having said this, some occupants will spend weeks or longer at a motel. Recent years have witnessed massive advancements regarding technology as well as staff responsiveness.

Hostels

Hostels are often associated with student travelers; yet, they can be used by anyone who desires a room for the evening. They are generally rented on a 24-hour basis, and most hostels are located close to city centers (to provide easy access to those unfamiliar with the location). Hostels are also known for their ability to offer rock-bottom prices.

Resorts

Resorts fall into the high end of the hospitality sector spectrum. Yoga retreats, wellness centers, and properties designed to provide unfettered views of nature all fall into this category. Modern resorts aim to please if you have been looking for a home away from home while enjoying a bespoke sense of luxury.

Serviced Apartments

Serviced apartments are fully furnished properties that can be made available for both short- and long-term stays. Room service, daily housekeeping, access to fitness centers, and free wireless Internet connectivity are some of the hallmarks associated with these locations.

Time-Sharing Plans

This type of accommodation will divide up the amount of time that guests are allowed to stay. Each customer is provided with an arrival and departure date. Timeshares are often associated with extremely popular tourist locations such as the Costa del Sol in Spain or the Algarve region of Portugal.

2) Food and Drink

The second hospitality sector is “Food and Drinks”. It is already a foregone conclusion that guests must be offered food and drink services during their stay. This is another cornerstone of hospitality in general, as the quality and availability of such items will often impact the overall customer experience and, in turn, the hotel’s status.

Restaurants

Restaurants represent a sizeable portion of the hospitality sector as a whole. The hotel often brands these premises, and depending upon the amenities, some will even offer Michelin-starred service options. Guests will often base their overall experience around the quality of food that restaurants provide.

Catering

Hotels and resorts can often include catering services as a portion of their standard pricing plans. Larger properties will provide catering to address business luncheons, professional seminars and similar gatherings that restaurants might be unable to accommodate efficiently.

Bars & Cafés

Bars and cafes are excellent places to refresh or enjoy a tasty meal. Furthermore, they are known for their laid-back social atmosphere, a notable difference from many in-house restaurants. Most properties will offer such options because they tend to draw reliable clients.

Nightclubs

Some hotels are partnered with a proprietary in-house nightclub (Hotel W Barcelona is a perfect example). Nightclubs are an excellent means to obtain additional revenue and it is important to point out that the public is normally allowed to enter alongside property guests.

Tea and Coffee Shops

Whether referring to a proprietary bistro or a third-party firm such as Starbucks, which has rented out space, tea, and coffee shops offer guests an additional sense of convenience during their stay. These smaller establishments have become increasingly popular by providing wireless access alongside on-the-go services.

3) Hospitality Related Concerns

Individuals must be provided with a timely means to arrive at their destination. Trains, airplanes, cruise liners, and even car hire services are all encompassed by this category. In fact, without this hospitality sector, the hospitality industry as a whole would cease to exist without the presence of such options.

Travel Agents

Travel agents essentially take on the role of intermediaries within the hospitality industry. Clients often use them to expedite booking a holiday and, perhaps most importantly, finding the most appropriate levels of accommodations.

Tour Operators

Tour operators are professionals or firms that specialize in providing package holiday deals. Those looking for specific arrangements, such as all-inclusive cruises or family packages, often utilize them.

Online Travel Agencies (OTA’s)

Online travel agencies are increasingly important in the hospitality sector due to their Internet presence. OTA’s are great options if you want to obtain amenable deals via online searches. Sometimes, a free membership can offer additional benefits such as email alerts and substantial discounts if you book within a certain time frame.

Cruises

Cruise liners are often paired with hotels because travelers may use ports of debarkation for days. In other words, it only makes sense that customers are provided quality property during their stay at various locations. Having said this, many franchised hotels have placed their properties on the ship itself.

Car Rental

A huge hospitality sector is “Car Rental”. Car hire services can be used in synergy with hotels by guests looking to avoid the hectic nature of public transportation. While travel agencies may provide these, they might also be able to be obtained directly at the property. There are times when the price of a care hire will be included within the overall holiday package.

Casinos

The hotel-casino relationship has been another advancement within the hospitality industry. Supplying an amazing source of entertainment while allowing guests to stay in the same complex is an extremely attractive concept. Certain customers may also receive compensation packages (“comps”) through casino credits or high-roller suites. Some notable examples include the MGM Grand Las Vegas, the Sands Monaco, and the Foxwoods Resort Casino.

Video: Hospitality Sectors Within the Hospitality Industry

 

Different Management Types Within the Hospitality Sector

Within the hospitality sector, there are several distinct management types, each with its requirements regarding knowledge, skills, and qualifications. Some of the main types are explored below:

Restaurant Management

Restaurant management involves managing the core operations of a business within the restaurant industry. Most definitions specify that a restaurant is a business where customers can order food and eat the food on-site. That said, restaurants may be connected to other businesses in the hospitality sector, such as hotels.

In the article “Restaurant Management: Everything You Need to Know”, you can find out more about what restaurant management entails, the value of a good restaurant manager, and some of the qualities that are necessary, such as excellent communication and organization skills, a passion for service, and strategic thinking.

Travel Management

Travel management is an important part of the hospitality sector and can be briefly summarised as managing, organizing, and optimizing corporate travel. By enlisting the help of a travel manager, or a travel management company, businesses can reduce costs and capitalize on industry contacts.

The article “Travel Management: All You Need to Know!” covers more about the specifics of travel management, the role of travel management companies, and the difference between in-house and external travel agents.

Hotel Management

Within the hospitality sector, hotel management involves overseeing day-to-day operations within a hotel or a business within the hotel industry. This can include supervising specific tasks, planning business strategy, assisting with marketing and customer service efforts, training staff, recruiting staff, and investing in the right technology.

In the “Hotel Management: Everything You Need to Know About Managing a Hotel” post, you can learn much more about what hotel management is, the education and skills needed for the role, the latest technology trends, hotel marketing strategies, and the various job boards available for finding vacant hotel management positions.

The Hospitality Sector’s Emerging Trends

Every hospitality business owner must keep up-to-date with the most important trends in this sector to stay ahead of the game. What’s more, businesses operating within the hospitality industry must keep up with the wider travel and tourism industry to continue offering excellent service to their prospective customers. In the article “Hospitality Trends: The Latest Trends in The Hospitality Industry” you can find the top trends in the hospitality industry.

Emerging Hospitality Marketing Trends

Hospitality marketing is a make or break tool for the travel and hotel industry. You must apply the latest digital marketing tools to your hospitality business to remain abreast of your competitors. Using the right strategies, you can increase revenue and enhance your brand’s image. You can create the perfect marketing strategy by looking into how online users research and plan their travel tours and accommodation. In the article “Latest Hospitality Marketing Trends,” you will find the latest hospitality marketing trends.

Top Tech Trends in the Hospitality Sector

Information technology is just as important for the hospitality industry as it is for any other sector. Businesses can improve and innovate processes and even enhance customer experiences through the help of technology. Today, guests want to be able to message the hotel staff, use the room service, and control the heating from their smartphones. By keeping up with the latest technology trends, hospitality businesses can stay ahead of the competition. In the article “The Latest Technology Trends in the Hospitality Industry,” you will find the latest technology trends that hospitality companies should be aware of.

Revenue Management & Hospitality Sector

The concept of revenue management can be simplified as the optimization of financial results. It can maximize revenues if the hotel and hospitality industry analyzes its sales through historical, current, and future data. Revenue management is a technique to forecast demand and optimize inventory, including price availability. When done correctly, this will result in higher revenue. Discover the impact of revenue management on the hospitality industry by referring to this informative guide, ‘Revenue Management; clearly explained!’.

Find a Travel Agency in the Hospitality Industry

The competitive nature in the hospitality sector means companies need to take steps to maximize the number of bookings they can attract. One of the most effective ways to do this is to work with the right travel agencies, as they may be able to reach customers who are unaware of your business and might not find your website.

Read “Find a Travel Agency and Increase Your Bookings” to learn more about the various travel agencies you can connect with to maximize the number of customers you attract.

Hospitality Management

Efficient hospitality and good service are highly important to any business. In the hospitality sector, the customer is always the main focus, as they can make or break a business. To succeed in hospitality management, you must always prioritize your customers’ needs. After all, a happy customer will recommend your business to two of their friends, while an unsatisfied one will tell 1000 people about their bad experience. Learn more about hospitality management with the help of this guide, ‘Hospitality Management: The Essentials About Hospitality’.

Understanding Hospitality Careers and Positions

The hospitality sector includes many businesses, ranging from hotels and other types of accommodation to bars, restaurants, cafes and nightclubs. As a result, there are several different hospitality careers to pick from, catering to people with different skills, qualifications, and experience levels within the industry.

Our “Understanding Hospitality Careers and Positions” article provides insight into the main job roles available within hospitality and information on what you would be expected to do in each role.

Find Hospitality Jobs With These Channels

When finding jobs within the hospitality sector, it can be important to turn to a combination of different channels. After all, different employers will opt for different ways to advertise any available hospitality jobs, and you do not want to miss out on the ideal role just because you kept your search too narrow.

The “Find Hospitality Jobs With These Channels” article provides an in-depth look at the various channels available, complete with specific examples of some of the websites or platforms you can use.

Find the Next Step in Your Hospitality Management Career

If you are looking to take the next step in your hospitality management career, there are a number of things you can do to maximize your chances. Senior jobs within the hospitality sector will require relevant experience and skills, but you will also need to build a strong CV, look for jobs in the right places and deliver at the interview stage.

Check out the article “Find the Next Step in Your Hospitality Management Career,” and you will find 10 tips to help you get ahead in the hospitality industry and move into a managerial position.

Hotel Websites to Check for Hospitality Management Jobs

Hotel websites represent one of the best options for finding hospitality management jobs or other senior positions within the hospitality sector. With this in mind, it may be wise to build up a list of hotel chains that you feel connected with or share your core values, with and then regularly check back for opportunities.

By reading “Hotel Websites to Check for Hospitality Management Jobs”, you can learn more about the importance of hotel websites, and you will also have access to an index of 10 of the biggest hotel chains.

Become a Hospitality Manager Using These Job Boards

Whether you are an employee in the hospitality sector looking to advance your career or an existing hospitality manager who wants to work elsewhere, finding advertised vacancies is the priority. Although it is best to use a range of channels, job boards rank among the most popular options for job seekers and employers alike.

Read the “Become a Hospitality Manager Using These Job Boards” article for a breakdown of 10 of the most important job boards within the hospitality industry, so you can find your dream managerial vacancy.

Hospitality Course: Education Options in the Hospitality Sector

If you are interested in pursuing a career in the hospitality sector over the long term, enrolling in a relevant hospitality course may be valuable. These educational courses will help to arm you with valuable skills and information. Some courses also open up new opportunities to progress toward more senior roles.

To learn more about the numerous hospitality course types, what they teach, and where you should look for them, check out our “Hospitality Course: An Overview of Courses & Hospitality Educators” article.

A Revenue Management & Hotel Marketing Guide for Hotel Managers

The idea of hotel marketing may seem daunting for hotel owners, but it’s an essential part of managing rooms, pricing, guest service, and availabilities. With the emerging trends in revenue management and digital marketing, every hotel owner should be prepared to improve their brand through new digital channels. In the ‘Free Guide: Revenue Management & Hotel Marketing Strategies’, hotel owners can get essential tips on marketing their hotel business.

It should now be clear to appreciate the depth and breadth of the hospitality industry. Not only is the hospitality sector continuing to evolve at a breakneck pace, but you can now enjoy amenities and options that would have seemed impossible in the past.

The Impact of the Corona Crisis on the Hospitality Sector

With the unwelcome arrival of Covid-19, the adverse effects of this invisible enemy on the hotel and hospitality sector have been phenomenal. Almost every country has tight travel restrictions, with full or partial lockdowns imposed on the entire population. As a result, many important regional and international business and leisure events have been canceled, including the Olympics, the UEFA Euro, and the ITB Berlin Travel Fair.

Businesses in almost every sector have faced restrictions, and because of the imposed lockdowns, many people have lost their jobs. And if no one works, they certainly can’t plan any holidays, especially not this year or next year.

The lack of bookings means that companies operating in the hospitality sector, like restaurants and hotels, have lost up to 90% of occupancy, while some are forced to close. And the ones that have remained open are willing to bare the high, ongoing costs to see what the future brings. There is no denying the virus’s substantial financial impact on hoteliers facing serious cash flow problems.

In the category “Corona,” you find a selection of tips that helps hospitality and travel businesses recover and prepare for better times.

An Overview of All Major Hospitality Services

The hospitality sector is vast and includes a huge number of different services, ranging from hotels, restaurants and cafes, right the way through to zoos, theme parks and karaoke bars. With such a broad spectrum of business and service types, it can be useful to have a full breakdown of the major hospitality services.

In the “Hospitality Services: A Clear Overview of All Hospitality Services” article, you will find information about more than 50 different services, so you can enhance your understanding of the industry as a whole.

Want to Learn More About Related Industries?

The hospitality industry is part of the travel industry, and the hotel industry is part of the hospitality industry. All these industries have in common that they are large service industries worldwide and increasingly important in the modern age. But what is the difference between the travel and tourism industry? And what are all hospitality sectors within the hospitality industry? In the following articles, you can learn more about related industries.

More Tips to Grow Your Business

Revfine.com is a knowledge platform for the hospitality & travel industry. Professionals use our insights, strategies and actionable tips to get inspired, optimise revenue, innovate processes and improve customer experience. You can find all hotel & hospitality tips in the categories Revenue Management, Marketing & Distribution, Hotel Operations, Staffing & Career, Technology and Software.

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This article is written by:

Martijn Barten
Hi, I am Martijn Barten, founder of Revfine.com. I am specialized in optimizing revenue by combining revenue management with marketing strategies. I have over 15 years of experience developing, implementing, and managing revenue management and marketing strategies and processes for individual properties and multi-properties.