The hospitality industry is generally recognised as a section of the wider service industry, with a focus on leisure, rather than more basic needs. In this article, you will learn more about the nature of the hospitality industry, the various sectors contained within it, and its connections to the hotel industry and travel industry.
- What is the Hospitality Industry?
- The Difference Between the Hospitality Industry and the Travel Industry
- Sectors Within the Hospitality Industry
- The Latest Hospitality Trends
- Technology Trends in the Hospitality Industry
- Hospitality Marketing
- Revenue Management in the Hospitality Industry
- Find Travel Agencies to Generate More Bookings in the Hospitality Industry
- Hospitality Management
- Different Management Types Within the Hospitality Industry
- An Overview of Different Hospitality Careers
- Channels for Finding Hospitality Jobs
- Tips for Advancing Hospitality Management Careers
- Hospitality Management Jobs Offered By Hotel Chains
- Job Boards for Finding Hospitality Manager Jobs
- Hospitality Course: An Overview of Hospitality Industry Education
- Free Online Revenue Management & Marketing Guide for Hotels
- Other Related Industries
Extra: How the Corona Virus Epidemic has Affected the Hospitality Industry
What is the Hospitality Industry?
So, what is the Hospitality industry? First, it is important to define what we mean by the hospitality industry. After all, it is a broad field and while most people have a basic idea of the types of businesses that count as hospitality brands, a far smaller number are able to provide a coherent and satisfactory explanation of what the industry is, and what it is not.
Put simply, the hospitality industry refers to a variety of businesses and services linked to leisure and customer satisfaction. A defining aspect of the hospitality industry is also the fact that it focuses on ideas of luxury, pleasure, enjoyment and experiences, as opposed to catering for necessities and essentials.
The Difference Between the Hospitality Industry and the Travel Industry
The hospitality industry and the travel industry are closely connected, but there are also some subtle differences to be aware of. On a basic level, the travel or tourism industry is concerned with services for people who have travelled away from their usual place of residence, for a relatively short period of time.
By contrast, the hospitality industry is concerned with services related to leisure and customer satisfaction. This may well mean offering services to tourists, but it can also include the provision of services to people who are not tourists, such as locals enjoying their free time, or people coming to an area for reasons other than tourism.
Sectors Within the Hospitality Industry
The accommodation sector of the hospitality industry is concerned with providing customers with a place to stay, on a temporary basis. It is most commonly associated with the tourism industry, where people book holidays or trips and require lodgings, but the accommodation sector also caters to local people seeking a short break from their everyday routine, or those who require temporary accommodation for almost any other purpose.
Bed & Breakfasts
Bed & breakfasts, also known as B&Bs, are small establishments, which offer overnight stays and breakfast in the morning. Most B&Bs owners live in the property, while guests are provided with a private room and, in most cases, they will also have a private or en suite bathroom. However, bathroom facilities are sometimes shared.
Arguably the most obvious form of accommodation that falls within the hospitality industry, hotels cater to people who require overnight or longer-term stays. Aside from offering lodgings, they tend to provide various other services, including room service, housekeeping, and facilities for eating and drinking.
Motels are similar to hotels, but are specifically designed for use as overnight accommodation by motorists. With this in mind, they are generally situated at the roadside, and will have free car parking facilities. Unlike hotels, however, motels usually offer little in the way of additional services or amenities.
Hostels are a form of communal accommodation, where multiple guests will usually sleep in a shared room, with the guests effectively renting a bed. Bathroom and kitchen facilities are usually shared and hostels offer less privacy than hotels. Yet, they are usually significantly cheaper, making them a solid option for those with a low budget.
A resort is similar to a hotel, but it will provide a wider range of facilities and amenities. This means that guests are able to access sleeping facilities, food and drink facilities, entertainment facilities, shopping facilities and other amenities without needing to leave the resort. Many resorts also offer all-inclusive pricing.
Another form of accommodation that shares similarities with hotels, serviced apartments are self-contained units, which are supplied for either short-term or long-term stays. These apartments will typically be fully furnished, will contain a kitchen, and may include various hotel-like services, such ass laundry and cleaning.
Finally, time shared accommodation is a type of accommodation where ownership or usage rights are shared between multiple people. It may be a house, condo, or similar type of property and each owner will typically be allocated a particular time of the year where they will have right of use.
2) Food & Drinks
While food and drinks are necessities, most food and drinks services also fall under the hospitality industry umbrella, due to the fact that they offer people a way of spending their leisure time and disposable income, as well as an opportunity to socialise and enjoy an experience. Again, the food and drinks sector caters to a wide range of customers, including tourists, locals, ex-pats and passers-by.
Restaurants provide customers with food and drinks services, with the food either being eaten in the establishment, or taken away for consumption. This section of the hospitality industry includes fine dining restaurants, takeaway restaurants, fast food restaurants and a variety of other restaurant types.
Catering services are food services provided within a particular site, or in a more remote location, where food and drink are not necessarily the main service provided. Examples of this include catering provided at parks, arenas, stadiums, hotels, event venues and on certain forms of public transport.
Bars & Cafés
Bars and cafés provide customers with options to go out, socialise and enjoy food and drinks. They also tend to be a more casual option than most sit-in restaurants. Cafés generally focus on coffee, tea and light snacks, while bars tend to prioritise alcoholic drinks and soft drinks, and may also offer additional entertainment.
Nightclubs are one of the main ways the hospitality industry caters to people in search of night-time entertainment. They serve alcoholic drinks, are kept open until late, and often place an emphasis on both music and dancing. Many nightclubs have specific themes and they may cater for locals, as well as visitors or tourists.
Tea & Coffee Shops
Tea rooms and coffee shops provide a similar function to cafés, primarily serving varieties of tea and coffee, as the name suggests. With that being said, tea and coffee shops are often individual room within larger buildings, such as hotels, and they may also sell products to be taken away, such as tea bags and coffee beans.
3) Travel and Tourism
It is important to understand that the hospitality industry and the travel industry are closely linked. Many of the services that are classed as travel industry offerings are also hospitality offerings, because they are linked to leisure, customer satisfaction, pleasure, experiences and the use of disposable income. Importantly, the cross-over between the tourism industry and the hospitality industry centres on services, rather than end-products.
Essentially, travel agents serve to sell travel products to customers, on behalf of suppliers. They will often receive a commission for successful sales and can be a convenient option for inexperienced travellers, providing them with advice on the best travel products for their particular needs.
A tour operator offers a combination of travel and tour products, combining them into a package, which is then sold to customers. This might, for instance, include travel to a destination, transfers from a hotel or train station to a hotel, as well a number of trips, activities or experiences throughout the customer’s stay.
Online Travel Agencies (OTAs)
Online travel agents, or OTAs, perform many of the same functions as traditional travel agents, albeit over the internet. However, the use of online platforms means customers often have access to a greater level of self-service, with the OTAs helping users to search for the travel products that best suit their requirements.
Cruises are voyages on cruise ships, undertaken for pleasure, rather than for the sole purpose of transportation. A cruise may have various stops along the way, but passengers will spend the vast majority of their time aboard the cruise ship, which will provide them with lodgings, entertainment, catering and more.
Car rental services cater to customers who require short-term access to a car. In many cases, these services are used by tourists travelling to other parts of the world, although some locals may also wish to rent a car, especially if they do not have regular access to one, or if they require a larger number of passenger seats.
Finally, a casino is an entertainment establishment, which provides customers with opportunities to gamble. These gambling opportunities are predominantly offered via luck-based games. In addition to the gambling component, many casinos also stage live performances, offer food and drinks, and are connected to hotels.
Video: What is the Hospitality Industry?
The Latest Hospitality Trends
It is important for businesses operating within the hospitality industry to keep up with the latest hospitality trends, in order to avoid being left behind. Furthermore, keeping pace with the wider industry is one of the ways owners can help to ensure their business is delivering an excellent customer experience. In the article “Hospitality Trends: The Latest Trends in The Hospitality Industry” you can find the latest hospitality trends.
Hospitality Technology Trends
As in every industry these days, technology is becoming also tremendously important within the hospitality industry. It helps companies operating in the industry to innovate processes and customer experiences. Furthermore guests are used to a variety of technologies at home, so they also expect at least the same level when they are on holiday. Keeping up with the latest technology is essential, because the industry is extremely competitive. 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.
Hospitality Marketing Trends
Introducing the most effective hospitality marketing tools to your business is essential for attracting new customers and increasing your brand’s reputation. Marketing your business through digital platforms is a powerful way to gain maximum exposure. Knowing how users plan and book their accommodation and tours online will help you utilise the most powerful marketing strategies. In the article “Latest Hospitality Marketing Trends” you will find the latest hospitality marketing trends.
The Relevance of Revenue Management for The Hotel and Hospitality Industry
Every industry is competitive, and hospitality industry is no different. An effective revenue management strategy can help to maximise profits, not just for the hotel sector, but also for resorts, cruises, restaurants, casinos, and any other hospitality sector. Revenue management utilises a revenue optimisation method that helps businesses in the hotel and hospitality industry exploit their full potential for higher profitability. Learn about the definition of revenue management and its importance in this article, ‘Revenue Management; clearly explained!’.
Find Travel Agencies to Generate More Bookings in the Hospitality Industry
When people look for travel products or services online, rather than going to individual company websites, they often turn to travel agencies. For this reason, the hospitality industry can potentially benefit from linking to a travel agency platform, because the agency will be able to generate incremental bookings for you.
Read “Find Travel Agencies to Generate More Bookings” and you will have access to a list of the main travel agencies to partner with, along with further information about why working with travel agencies is so important.
Hospitality is an industry that includes restaurants, hotels, casinos, amusement parks, events, cruises, entertainment, and other tourism-related services. As such, this industry isn’t just important to businesses, but also to customers, employees, and economies. Providing customers with an excellent service is the primary goal of hospitality managers as they focus on creating high-standard services and environments for the purpose of making their customers feel welcomed at their establishments. ‘Hospitality Management: The Essentials About Hospitality’ is a comprehensive guide that explains how to kick-start your career in the hospitality sector.
Different Management Types Within the Hospitality Industry
Within the hospitality industry, there are a number of different management types to be aware of. In the sections below, you can find out about what each of these roles entails.
Restaurant management is the management of businesses or departments within the hospitality industry that allow customers to order food and eat it on-site. It involves overseeing the day-to-day management of the business or department, managing employees, tracking and maintaining stock levels, managing reputation and more.
Check out “Restaurant Management: Everything You Need to Know” for more on how restaurant management is defined, the core duties associated with the role, the qualities needed to succeed, and the value of the role.
Within the hospitality industry, travel management refers to the specialism of organising and managing business travel. Typical tasks can include tracking expenditure, optimising travel routes, booking flights and hotel stays, and devising strategies to minimise the negative impact of business travel on productivity, morale and company finances.
Take a look at the “What is Travel Management?” article for an in-depth overview of travel management as a discipline, complete with a breakdown of the most important tasks, an evaluation of the benefits of travel management, and insights into the differences between in-house travel management and the use of a travel management company.
Hotel management refers to the management of hotels and similar businesses operating in the hospitality industry. Generally, hotel managers are responsible for overseeing daily operations, supervising departments when necessary, managing employees, recruiting new staff, providing training, devising strategies, and much more.
Read “Hotel Management: Everything You Need to Know About Managing a Hotel” for a much more detailed analysis of the role of hotel manager, the importance of effective management, and the core duties.
An Overview of Different Hospitality Careers
The hospitality industry is so diverse that those who are seeking hospitality careers have a substantial number of different job roles to choose from. Whether you want to work in food and drinks service, a front office position, cleaning and maintenance, or in a managerial role, it is vital to understand the different options available.
Read “An Overview of Different Hospitality Careers” for a breakdown of the most common and important hospitality positions that are available, complete with a description of what each job actually entails.
Channels for Finding Hospitality Jobs
Employers in the hospitality industry advertise vacancies on a number of different platforms and channels. For this reason, if you are seeking hospitality jobs, it is important that you turn to a combination of these channels, so that you do not miss out on the ideal opportunity for your skill set and personal preferences.
Check out “Channels for Finding Hospitality Jobs” for an overview of some of the most popular and important channels you can use to find and apply for jobs online, including hospitality job boards, social media sites, recruitment agencies and hotel websites.
Tips for Advancing Hospitality Management Careers
The hospitality industry is competitive by its very nature and demand for hospitality management careers can be especially high. Whether you are looking to become a general or hotel manager, or the manager of a specific department, there are certain things you can do to maximise your chances of landing the role of your dreams.
Read “Tips for Advancing Hospitality Management Careers” and you will find a list of 10 tips that can help you to find the right role, improve the quality of your application, and perform well in the interview.
Hospitality Management Jobs Offered By Hotel Chains
Within the hospitality industry, some of the biggest employers are major hotel chains and especially those that operate on a global level. These businesses offer a number of different types of hospitality management jobs and often advertise vacancies on their own corporate websites, so it can be important to check those regularly.
In the article, “Hospitality Management Jobs Offered By Hotel Chains”, you can find out more about ten of the biggest hotel chains in the world and use the information to seek out senior management roles online.
Job Boards for Finding Hospitality Manager Jobs
Many people working in the hospitality industry aspire to work in a managerial role, but for this to be possible, the first step involves knowing where to look for advertised vacancies. For anyone seriously looking to become a hospitality manager, job boards represent one of the most useful channels.
In “Job Boards for Finding Hospitality Manager Jobs” you will be able to gain insight into the role of a hospitality manager and also find 10 examples of job boards that advertise senior hospitality positions.
Video: Want to be a Hospitality Manager? Watch this!
Hospitality Course: An Overview of Hospitality Industry Education
The hospitality industry offers many different job roles and while some of these are entry-level positions, others will require more advanced skills and knowledge. This means that there may be some career options that will require you to take a hospitality course first. Fortunately, there is a diverse range of options to choose from.
If you would like to learn more about the hospitality courses that exist, what they cover, how they can benefit you, and where you can find them, read “Hospitality Course: An Overview of Courses & Hospitality Educators”.
Free Online Guide on Revenue Management & Marketing Strategies
Excellent facilities, a first-class service, the most comfortable rooms, and a great location may all be the highlights of your hotel, but the question is, are your potential customers aware of these? Having a perfect hotel without anyone knowing about it is no use unless you use the most effective hotel marketing strategies. The ’Free Guide: Revenue Management & Hotel Marketing Strategies’ will show you how to market your hotel business effectively by utilising some important strategies.
How the Corona Virus Epidemic has Affected the Hospitality Industry
The global impact of the corona virus on businesses, especially the hotel and hospitality industry, has meant fewer people are able to travel due to the imposed travel restrictions. Almost all the local and international events have been cancelled or postponed to a later date, with examples including the Olympic Games in Japan, the 2020 UEFA EURO, and the largest travel trade fair, ITB Berlin, to name some of the few.
With almost every business facing restrictions, and people worrying about their job security, it’s no wonder that no-one is keen to book their holidays for 2020 or even 2021.
The hospitality industry is one of the sectors that’s been hit the hardest. Some hotels have lost up to 90 per cent in occupancy, and some restaurants and hotels had no choice but to make their staff redundant in order to stop their recurring costs. As a result, many businesses have been forced to deal with their own cash flow problems and facing an uncertain future.
In the category “Corona” you find a selection of tips which helps businesses operating in the hospitality and travel industry to recover and prepare for better times.
Ultimately, the hospitality industry should be classed as a section of the service industry, which focuses on leisure and customer satisfaction, rather than on necessities and end-products. It is a broad industry, containing multiple sectors, as well as a wide range of different businesses and products.
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 of these industries have in common that they are large service industries in the world 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 learn more about related industries.
- Travel Industry; An Overview of One of the Largest Service Industries
- Hotel Industry; An Overview of All Different Types of Accommodations
- Tourism Industry; Everything You Need to Know About Tourism
- Restaurant Industry: Overview, Types, Examples and More..
- What is the Difference Between the Travel and Tourism Industry?
- Airline Industry: All You Need to Know About The Airline Sector
- Aviation Industry: Everything You Need to Know About the Aviation Sector
- Everything You Need to Know About the Cruise Industry
- Space Tourism: 5 Space Companies That Will Make You An Astronaut
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Local experience – people travel because they want to experience a life similar to their own, but in a different location and experience an authentic way of life in the location they visit.
Healthy and organic food – people have become more and more concerned about the health and they tend to eat more healthy food, more guests required gluten-free meals and more guest have special diets.
Sustainability – is widely regarded as the key to a successful business. Sustainability can continue to support life and provide resources to meet the needs of the present and future generations.
Personalization – it is an overused expression when it comes to customer experience in our digital age. Any business within the hospitality industry is built upon the principles of providing great personal service to the guest. A high-level level of personal service is achieved by well-trained staff. Additionally face to face could be replicated by a hotel’s digital personal concierge.
Artificial intelligence – AI, refers to the performance of seemingly intelligent behaviours by computers or machines. it is only in recent times that technology has advanced to the point where it can be considered reliable enough to deploy for important business tasks.
Essentially, AI refers to computers or machines carrying out tasks that were traditionally thought to require the cognitive function to carry out. It is associated with concepts like automation and big data.
You got my attention when you said that hotel accommodation falls within the hospitality industry. As you said, hotels offer various other services such as room service and housekeeping. My daughter once mentioned that she would like to work in hotels and establishments that cater to guest accommodation. It would make sense to me if I could find an online training session for her to help her with her career. Thanks for sharing this.
Hi Shammy, Great to hear you support your daughter with her career in hospitality :) In our article “Hospitality Course: An Overview of Courses & Hospitality Educators” you find a list of websites and educators with hospitality courses worldwide. Hope this helps.
Thank you so much for such an amazing article about the hospitality industry. I learned a lot!
Thank you for publishing an article about hospitality. As you said, the hospitality industry refers to a variety of businesses and services linked to leisure and customer satisfaction. By reading these articles I know more about what the hotel offers to guests. This article is very educative and an opportunity for me to achieve my goals in the hospitality industry.