four sectors of hospitality & tourism

• Hospitality Industry

What is the hospitality industry? All your questions answered

March 28, 2024 •

20 min reading

The hospitality industry is a large subsection within the service industry and is comprised of four main areas : Food & beverage, travel & tourism, lodging, and recreation. As examples, the F&B category includes restaurants, bars, and food trucks; travel & tourism covers different forms of transportation and travel agencies; lodging varies from hotel resorts to hostels; recreation refers to leisure activities such as sports, wellness, and entertainment. While all sectors are interconnected and reliant on each other, many of these hospitality sectors are quickly evolving due to new technologies and changing customer mindsets.

Known for being one of the main industries that is easily impacted by external forces, many questions have recently come up regarding the state of hospitality today. What trends are shaping its future? What makes it still one of the world's fastest-growing industries? How can it remain competitive? How to deal with the post-Covid staff shortages?

Read on to find out the experts' guide on what is happening in this exciting, evolving, and resilient sector.

A brief history of hospitality

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Derived from the latin word “hospes”, meaning host (one who provides lodging or entertainment for a guest or visitor), hospitality has its roots in ancient history. The ancient Greeks used the word "xenia" to define the sacred rule of hospitality: the generosity and courtesy shown to those who are far from home or associates of the person bestowing guest-friendship. Away from home, surrounded by strangers and yet feeling welcome.

Although the original concept of hospitality has remained largely unchanged since its origins (meeting travelers’ basic needs such as providing food and accommodation), the idea of building hotels for the sole purpose of hosting guests emerged alongside technological advances and better means of transportation towards the end of the 18th century. Since then, the sector been in constant expansion due to the very concept of hospitality being applicable to any sector that deals with customer service and satisfaction.

Along with the overall economy, the global hospitality industry has enjoyed a spurt of massive growth over the last decade since the end of the financial crisis. According to the World Bank , the global economy has grown at a pace of more than three percent per year up until the global pandemic hit in 2019/20. Due to pent up demand during the beginning of the COVID-19 pandemic there was an acceleration of the global economy in 2021 of 5.5 percent growth, however it is set to decelerate to 4.1 percent in 2022 and 3.2 percent in 2023, arriving back at pre-pandemic levels.

This unprecedented expansion over the last decade has benefited the hospitality and tourism industry by stimulating the world population’s travel activity, adding countless room nights in both leisure and business travel .

1. International arrivals have increased from 900 million to more than 1.3 billion over a span of just ten years.

Not only has this boosted the number of rooms on offer, but has also led to a major contribution of global employment opportunities. Covid-19 had a severe impact and international tourist arrivals according to figures from UNTWO , which after years of steady annual growth saw a staggering -73% drop in arrivals in 2020 and -71% in 2021 due to travel restrictions in response to Covid-19.

All in all 2020 is recognized as the worst year in tourism history with 1 billion fewer international arrivals and US $ 1.1 trillion in international tourism receipts. Around -74% drop according to the latest data from World Tourism Organization (UNWTO) a level of 30 years ago.

However, so far the travel industry has seen an extremely positive bounce back. New data from UNTWO found that, overall, international arrivals reached 80% of pre-pandemic levels; in the first quarter of 2023.

Tourism figures are heading in the right direction as an estimated 235 million tourists traveled internationally in the first three months, more than double the same period of 2022.

2. The World Travel and Tourism Council ( WTTC ) names the hospitality industry’s importance as a main driver in global value creation.

Recent figures published by the WTTC found that in 2022 the Travel & Tourism sector made a contribution of 7.trillion USD to the global economy, 7.6% of the global GDP and 23% below pre-pandemic levels.

3. The hospitality and travel industry accounts for one out of every ten employment opportunities.

Bringing the number of people earning their living in the sector to a remarkable 330 million in 2022.

In 2022, there were 22 million new jobs, representing a 7.9% increase on 2021, and only 11.4% below 2019.

The rise in revenue does not only benefit international companies and hotel owners, but also acts as a major factor in job creation for local populations and destinations. As of the latest data, around 173 million people were employed in the hotel and motel industry before the Covid-19 pandemic hit.

The WTTC forecast that there will be an additional 126 million jobs created between now and 2032.

4. The overall growth in the travel and tourism industry stands at +5.8% Vs. Overall GDP +2.7%.

According to the Hospitality Global Market Report 2023 the global hospitality marketgrew from $4,390.59 billion in 2022 to $4,699.57 billion in 2023 at a compound annual growth rate (CAGR) of 7.0%.

This large growth rate is in part the bounce back from global restrictions on travel. The market is expected to continue growing but at a slower rate due to the global economic situation with a Compound Annual Growth Rate (GAGR) of +5,8% forecasted between 2022 and 2032.

Image source: World Travel & Tourism Council, Travel & Tourism Economic Impact 2022

1. The global economy growth has created positive momentum in the sector by contributing to the overall income per capita.

Since 2009, the global GDP has constantly increased at an average pace of almost two percent per annum, leading to a growing demand for both international and domestic travel spending. Whilst the Covid-19 pandemic led to a shock -2.81% decline in GDP in 2020 according to Statista , 2022 figures and subsequent projections for 2023 show year-on-year growth.

2. Airfares have consistently become more affordable over the last three decades, but will this last?

Thanks to lower fuel prices, carrier competition and the rise of low-cost airlines . While these are not happy news for the airline industry, which is using ancillary fees to increase profit margins, it benefits travelers who can get more from their purchasing power. However the emerging global energy crisis could put a halt to such a trend and airlines could pass on the price hikes to the consumer, which will in turn impact consumer travel behaviour.

3. Corporate travel is yet another contributor to the healthy outlook and is projected to keep growing.

In China and India, the growth of business travel is particularly steep due to the relentless pace of economic expansion in this part of the world.

4. The health and wellness segment has boomed in recent years.

There has never been so much appetite among the public for wellness and the escapism travel can offer from life’s stresses - the pandemic taught us to slow down and not to take our health for granted.

The global consumer health and wellness market is a $1.5 trillion market growing at 5 to 10 percent a year, and, according to a recent McKinsey survey, people around the world are increasingly interested in taking care of themselves and are planning to spend more money on wellness products and services.

5. Hotel operators are seeking to expand their portfolios through targeted acquisitions of smaller regional chains.

Mergers and Acquisitions activity in hospitality has somewhat cooled over the last few years , with operators seeking to expand business in a more controlled way.

1. The threat of climate change

The threat of climate change will adversely impact many major tourist destinations. Threats resulting from climate change, safety and security issues, as well as unprecedented migration streams are tomorrow’s game changers. The main challenges for the hospitality industry are the lack of predictability and the magnitude of such events – and how fast the industry can react and adapt. Hybrid operations might be one of the hospitality 4ndustry’s possible responses to increased risks.

2. Industry consolidation

Corporate consolidation has led to increasing concentration of size and power among the top players. Hotel operators will seek to expand their portfolios through targeted acquisitions of smaller regional chains. While the ultimate goal is to create value through cross-organizational synergies, this development also comes with downsides, as the management of structures with a diverse selection of geographies and a plethora of brands generates more complexity and threatens to increase overall rigidity.

Marriott and Hilton remain the world’s most valuable hospitality brands, valued in 2023 at $53.5B and $37.99B respectively.

3. New competition from tech and digital players

Are major technology firms such as Google or Facebook threatening to replace hotel brands by offering technological solutions and creating novel markets to attract new types of customers? Thanks to their control over all types of data related to customer behavior both off- and online, tech behemoths could oust traditional incumbents into niche markets. Companies that fail to identify their niche are at risk of becoming mere revenue generators for technology companies. Some big enough brands may survive, but their business will get tougher .

4. Skilled talent shortage

As the accommodation and restaurant industry is creating jobs at the fastest rate of any sector in the economy according to the International Labor Organization, fuelling this growth with the right skilled labor is yet another concern for owners. Attracting and retaining younger generations of hospitality professionals will require a lot of flexibility and attention from hoteliers in the future.

5. Energy crisis

The global energy crisis is the perfect storm of multiple factors causing a huge surge in energy demand which the limited global resources are struggling to fulfil. Added to this is Russia’s invasion of Ukraine, one of the main suppliers to Europe. Whilst the world grapples with accelerating the development of green infrastructure, the hospitality industry has an even bigger incentive to make efforts to switch to renewable energy sources where possible, not only as our environmental social responsibility but also to reduce the reliance on particular states which fuels the weaponization of energy.

6. Supply chain issues

Supply chain issues have affected most of the world, although Europe was the hardest hit, according to data from the 2022 State of the Third-Party Logistics Industry Report by Extensiv.

These issues are ongoing and are triggered by undulating demand, price volatility and uncertainty. The hospitality industry is affected on an operational level when bottlenecks cause delays on delivering food & drink, bed linen, housekeeping products and other replenishable goods. Running out of these items means giving customers a disappointing experience and leaving a poor impression that could diminish the business’s reputation.

7. Economic downturn

According to the UNWTO Panel of Experts , the economic situation remains the main factor weighing on the effective recovery of international tourism in 2023, with high inflation and rising oil prices translating into higher transport and accommodation costs. As a result, tourists are expected to increasingly seek value for money and travel closer to home.

Is there a silver lining? Well, we know that economic downturns make way for innovation and entrepreneurship ! The public needs new solutions for new problems, so now may just be the time to start thinking of your next business venture.

Travelers' expectations have greatly evolved especially now that technology is taking center stage in every area of guest experience. As 2024 progresses, hospitality professionals are gearing up to leverage various innovations and strategies that promise to reshape customer satisfaction and industry standards. Here are hospitality trends 2024 elevating guest satisfaction and driving business growth.

1. Towards sustainable travel

The reasons we desire to travel are many and include experiencing the beautiful things the world has to offer, meeting new people, supporting local culture, etc. In fact, more than 33,000 travelers across 35 countries and territories have been surveyed in Booking.com's Sustainable Travel Report 2023 . 76% of global travelers say they want to travel sustainably over the next 12 months.

Ecotourism is all about intentionally organising travel plans in a way that doesn't harm the environment. Thankfully, sustainability is a major driving force in the hospitality industry, with hotels and restaurants welcoming eco-friendly initiatives to minimize their environmental footprint.

A growing number of hotels are rising to the challenge of running a sustainable business. Beyond plastic usage , general waste production, food waste, usage of local produce, energy and water consumption, and many other factors are to be considered for operators that are serious about their claim. Going one step further, the term sustainability is also often used not only for environmental protection but also corporations’ approach to managing their people and their finances. All across the board, resources of all kinds are being used more efficiently in the hospitality industry and while various strategies are being adopted by hotels, a paradigm shift is becoming more recognizable.

From implementing energy-efficient technologies to sourcing locally produced ingredients, businesses are prioritizing sustainability to appeal to eco-conscious travelers—which is echoed in the next point.

2. Wellness for holistic hospitality

A lot of guests today are looking for experiences that promote physical and mental well-being. Hotels that have embraced wellness travel can now cater to this demand by offering activities like yoga retreats, on-site spa treatments , fitness centers with cutting-edge equipment, and healthy dining options.

Creating a relaxing and stress-free environment through thought-out design elements can contribute to a holistic wellness encounter. Travelers return from their trip feeling refreshed, rejuvenated, and ready to take on their day-to-day life.

The wellness tourism market is projected to reach well over $1,700 billion, in accordance with Precedence Research . Even so, investing in the health niche is beneficial for guests and financially rewarding for businesses.

3. Enhanced experiences with advanced technology

The integration of artificial intelligence and other technologies is reshaping the hospitality industry. AI-powered chatbots are being employed for personalized customer service to provide instant assistance and support to guests throughout their stay. Whether it's answering inquiries, making reservations, or addressing issues, chatbots offer convenience for both guests and staff.

On the other hand, predictive analytics algorithms help with demand forecasting and pricing optimization. AI is gaining traction in the hospitality industry because of its enhanced data analytics of consumer behavior patterns and improved ability to meet client demands. Data-driven personalization enables hotels to tailor offerings and marketing messages to individual guest preferences.

Global Market Estimates predict that between 2021 and 2026, the niche will rise at a compound annual growth rate (CAGR) of approximately 10%. Robots are also making inroads into the hospitality industry in automating housekeeping tasks, food delivery, and concierge services. While robots cannot replace humans entirely, they free up hotel staff to focus on higher-level guest relations and contribute to operational efficiency.

Why contactless technology?

Contactless technology has become essential since the COVID-19 pandemic as a way to offer guests a safer, more convenient experience. These systems allow users to network with devices or complete transactions without physical contact, often achieved through short-range wireless communication, like tapping your phone to pay at a store.

Mobile check-in/out, digital room keys, and touchless payment options are now standard in most, if not all big hotel chains. This trend is expected to persist beyond 2024 as businesses prioritize contactless solutions to not only minimize the spread of germs but also meet a growing consumer preference for minimal physical contact.

Immersive virtual reality experiences

Hotels are using Virtual Reality or VR to offer immersive virtual tours so guests can preview accommodations and amenities before booking. While virtual reality offers the ultimate virtual experience, guest relations managers appreciate accessibility concerns.

For those without VR headsets, 360° videos provide a panoramic view of hotel space with just a phone or computer. Interactive floor plans also let you virtually walk through the hotel for a solid understanding of the layout. This has completely changed the way guests explore and engage with hospitality offerings.

VR-enhanced experiences, such as virtual city tours or immersive dining experiences create memorable moments for guests, too. VR technology will become more accessible in the future; therefore, its adoption in hospitality is a no-brainer.

Make each customer feel special with personalization

The global leader in employee and customer experience, Medallia Research Inc. , reports that 61% of consumers are willing to pay more for hyper-personalized experiences. Guests crave guest-centric services that cater to their every whim. This is not just about remembering names but also using guest data to anticipate preferences and offer tailored services .

Information can include previous booking history, preferred room types, special requests, dietary restrictions, leisure activities, and feedback from past stays. With collated information, hospitality teams can customize everything from room amenities to dining recommendations to boost guest satisfaction and loyalty.

Embracing experiential tourism

If you've been bitten by the travel bug and want something extraordinary, you should definitely consider experiential travel. The idea behind this travel concept is to forge a deeper connection with a given destination than can usually be had from traditional leisure holidays so guests experience it as authentically as possible.

These often involve an element of adventure, whether cultural, culinary, or spiritual; as such, tours mainly focus on less "touristy spots." For instance, after the pandemic, family ski vacations to Japan are preferable compared traditional choices like Aspen or Canada. Add-on experiences such as samurai sword-fighting or temple tours add an extra dimension to the travel experience.

Experiential tourism is now high on nearly every traveler's wish list because trips aren't restricted to international pursuits. This trend presents an opportunity for hotels to partner with local businesses and offer unique experiences like cooking classes, cultural excursions, and outdoor adventures. Such offerings create memorable and enriching guest experiences.

Integrating storytelling marketing

As the name suggests, storytelling marketing is a powerful tool for captivating audiences and creating emotional connections with brands. Hospitality businesses are now crafting authentic narratives to showcase their unique offerings, heritage, and values to resonate with guests on a deeper level. This type of marketing can also set the stage for experiential travel by providing context and inspiration for visitors.

Through captivating narratives, travelers can visualize themselves in the destination, immersing themselves in its culture, history, and natural beauty. Storytelling paints a vivid picture of the travel experience enough to spark curiosity and ignite wanderlust among potential travelers. When utilized properly, hotels and restaurants can differentiate themselves from their competitors and boost brand loyalty.

Technology integration for advanced data security

Data breaches can be devastating. Guests entrust hotels with sensitive personal information and as the hospitality industry becomes increasingly reliant on technology, data security is crucial. Hotels must implement robust cybersecurity measures to protect guest data and maintain trust.

This is where technology integration comes in; from cloud-based property management systems to smart room automation. It can ensure data security by implementing advanced encryption protocols and access controls across all integrated systems, safeguarding guest information from unauthorized access or breaches.

Further, continuous monitoring and regular updates of integrated technology systems can help detect and mitigate potential security threats. Embracing innovative technologies and staying abreast of industry trends can future-proof hotel business operations and boost guests' trust.

Commitment to net positivity

Sustainability is no longer a niche concern; it's an expectation for many travelers. Hotels that prioritize green practices like energy efficiency, water conservation, and local sourcing reduce their environmental footprint besides appealing to eco-conscious guests. The industry is moving beyond simply being sustainable to aiming for net positivity, with regenerative tourism that gives back to the environment.

Management with a vision

None of the discussed hospitality trends 2024 are possible without effective management. Leadership in the hotel industry requires a clear vision for the future, an ability to adapt to changing trends, and a commitment to continuous improvement. Hospitality leaders must invest in their own development and the teams they lead can ensure their businesses remain competitive and thrive in the years to come.

As an industry that depends on a stable environment in order to successfully operate - societal and environmental changes are having a greater impact on hospitality businesses compared to other industries. A recent global survey among CEOs by PwC has shown that heads of hospitality and leisure companies are notably less confident about their companies’ prospects for revenue growth in the near future than their counterparts in other sectors.

With disruptors in the industry, a wave of consolidation, and many external factors impacting their operations, hotel operators must find new ways to overcome these hurdles. Solutions to future challenges that companies are currently coming up with are the result of new thinking among the world’s business leaders and CEOs.

In a crowded field of competitors, hotels must find ways to distinguish themselves and position their property as distinctive destinations for customers , to develop preferences and loyalty in order to drive direct bookings. To do so, hotels must offer more highly personalized experiences that anticipate and go beyond the needs of their target customers – and count on word of mouth and allegiance to not only retain their customer base, but also grow it with more potential customers.

We have been a super good hospitality group for the last 50 years. We are not shying away from it. We are shifting and expanding the hospitality notion to Augmented Hospitality. We are being even more audacious and going one step further by saying: Since people want to be recognized, want to have something extremely personalized, why don't we try going from Augmented Hospitality to a Lifestyle Augmented Hospitality player? Sébastien Bazin, Chairman and CEO of Accor (Source: Accor TV - New Accor Strategy).

Other ways that are often discussed when dealing with the impending changes are the implementation of new technologies, training employees to move away from standard SOPs to become true high-touch experience providers and modernizing the service offering towards individualization and “lifestyle” to create true differentiation.

Fully take advantage of technology and personalization to create experiences

A generational shift towards how travelers are consuming hospitality services is making hotels evolve from being mere suppliers of accommodation to experience providers, leading to a need for outstanding customer relationships across all stages of their customer booking journeys .

Focus on talent acquisition and retention

From targeted recruitment efforts to a meaningful interview process and to the actual hiring and onboarding, organizations that are well-equipped to recruit in the era of millennials think holistically about the overall experience delivered to potential hires .

Embrace sustainability as part of your business model

As a result, a growing number of international hotel companies have developed sustainability and corporate social responsibility strategies . These initiatives can be perceived as the beginning of a paradigm shift toward a more positive and conscious form of hospitality which is highly valued among consumers today.

Reshaping the future of hospitality jobs

Over the past two decades, the hospitality industry has experienced significant growth, with international arrivals doubling from 600 million to over 1.4 billion in 2016 .

In 2023 however, in the wake of the global pandemic and facing increasing economic uncertainty hospitality has shown that it is resilient and a sector that consumers are just not willing forego entirely. Travel and tourism is an integral part of our lives therefore even as the global economy retracts the industry will always bounce back. This ability to withstand difficult times makes it a viable sector to launch a career for anyone with a hospitality mindset and appreciation for top-level service, culture, and leisure experiences.

It's clear that the industry is evolving and adapting all the time, making it a fantastic career opportunity for the problem solvers and innovators of tomorrow. Hospitality Management will provide a career rich in experiences, human connection, personal development and comes with many perks.

Employers across the board are looking for professionals with a combination of both hard and soft skills . In hospitality, developing skills such as cultural awareness, multitasking, customer service and communications is paramount to effectively deliver outstanding customer experiences.

The increasing complexity of the hospitality sector and evolution of its modus operandi - due to the expanded use of technology and data, the evolution of business models with the separation of management from operations or the ever-increasing trend of brands becoming publishers - is leading to the creation of new job profiles , such as asset managers, data scientists or content marketing specialists.

The Covid-19 crisis has underlined the global importance of the travel and tourism industry economically as well as its interconnection with other industries. From small tour operators to multinational hotel chains and major airlines, everyone in the industry has been impacted and continue to reset and recover.

To every negative repercussions of a crisis there is also some positive change that could be foreseen for the future. The World Economic Forum’s recent “Rebuilding Travel and Tourism panel” at the “Sustainable Development Impact Summit” explored the intersection of consumer consciousness, acceleration of technology and destination management and found some solutions that could have the potential to reshape the way we market, manage and plan our travel:

• Travelers are becoming more impact-conscious
• Tourists are looking for experiences in nature
• Digital solutions are improving sustainability
• Long-term progress requires cooperation

The end result is in an industry that will recover as it is an essential part of modern human lives that derive much pleasure and discovery from it. It is simultaneously undergoing huge digital transformation and other shifts to adapt to consumer sentiment, therefore a career in hospitality won't necessarily be a quiet one, but it will be an exciting adventure with a multitude of possible career paths to explore.

Keep reading

Hospitality management careers list for hotel enthusiasts

May 07, 2024

How Airbnb and short-term rentals reshape rural and urban communities

May 02, 2024

What does a Hotel Manager do?

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What Are The 4 Different Sectors of The Hospitality Industry?

The hospitality industry is vast, covering everything from catering, hotels and retail to sports centres, conference venues and casinos.

While some businesses may target just one particular sector of the hospitality industry, it's common practice that many businesses will span across multiple sectors.

In this blog, we will break down each of the 4 defining sectors and explain more about these multibillion-pound industries.

1. Food and Beverage

The food and beverage sector is the largest of the four sectors in the UK. It's also the fastest-growing sector with over 50% of businesses expanding into new premises or taking on extra staff within the last year.

The food and beverage industry includes all leisure, hospitality and retail outlets that sell prepared and packaged foods. This includes restaurants, bars, cafes, pubs and takeaways.

It is particularly common to see the food and beverage sector integrated into the other three segments seamlessly. For example, many hotels (the accommodation sector) will provide an on-site restaurant, enhancing the experience of its patrons with excellent food and first-class customer service.

Not all establishments within the food and beverage sector play on the same field. Within this sector, there are different levels that require varying degrees of staff and skills.

Quick-service businesses which offer snack food will often hire fewer employees in comparison to the larger full-service restaurants due to their reliance on self-service to keep food costs down.

Larger scale operations such as fine-dining restaurants will often look for working staff with multiple years of experience as opposed to fast-food style businesses where cheaper and lower-skilled workers are more desirable.

There are even food and beverage businesses that will come to you in the form of catering. From weddings to business conferences. All and every occasion can be met with generally smaller standalone operations filling this need.

2. Travel and Tourism

Travel and tourism is a multifaceted sector that is generally regarded as the act of travelling from one location to another, either for business or pleasure purposes.

The act of travelling to another location must be for at least 24 hours but no longer than one year.

In recent years, the travel and tourism sector has experienced a sharp increase in growth.

This is mainly due to people's desire to travel further away for their holidays with more than 1 billion trips made abroad each year.

However, this growth hasn't been without its problems with many airlines experiencing near-collapses within the past decade.

Buses, taxi's, planes, ships, trains and so on are all considered part of the travel industry.

You may have noticed in movies, or even been asked yourself personally, that travel operators often ask customers if they are travelling for business or pleasure. These two sections of the travel industry segment can have quite a significant impact on the experience of the same journey.

Leisure travellers are more flexible with dates and are much more sensitive to price changes and have different requirements (e.g. child seats).

Business travellers on the other hand are generally bound to specific dates (corporate meetings to attend) and are less sensitive to price fluctuations since companies will pay for their employees to travel for business-related matters.

3. Lodging (Temporary Accommodation)

The lodging segment means providing accommodation for a period or a place to sleep for one or more nights.

Hotels, youth hostels, inns, bed & breakfasts and guest houses are all part of the lodging industry.

Each market themselves based on location and facilities. Business travellers, leisure travellers, budget travellers, special travellers (government, military), all have different needs and requirements and not every business within the lodging industry can accommodate all these markets.

Within the UK, businesses that offer accommodation must adhere to strict Crib 5 (also known as Ignition Source 5) regulations .

In short, these regulations ensure any furniture or furnishings used on the property must be treated in a way to reduce the risk of ignition which is to help prevent death in the event of a fire.

Such furniture as Zip & Link Beds must pass rigorous tests to ensure they comply with all the necessary regulations.

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As with other segments of the hospitality industry, the lodging segment can marry well with other hospitality segments to create a seamless and pleasurable experience.

4. Entertainment and Recreation

This segment of the industry is vast and has various sub-segments.

Featuring many attractions from cinemas to theme parks, museums to zoos, casinos to waterparks, indoor play centres to outdoor recreation activities such as paintballing or karting.

Depending on your location some of these facilities may be more prominent than others but generally speaking, they are all part of the entertainment and recreation industry.

People will visit these places for many different reasons such as business, special occasions, leisure or just to have some fun with friends or family.

Again, from a commercial aspect, this can be tapped into by a hospitality company offering special packages that include accommodation alongside tickets to local attractions/facilities.

The entertainment segment relies heavily on its consumers having disposable income. Without an income, the entertainment segment is out of reach and therefore never even considered.

This can be a challenge for smaller hospitality companies as it has to rely on repeat business from existing customers or new business from people that have no experience with the company before.

A good way around this could be to offer complimentary visits or free entry for a period of time for new customers such as a trial period or the first two visits free.

Another way could be to promote the facilities through schools/universities in an attempt to build loyalty before those people move into the adulthood age bracket that requires disposable income e.g. students moving on from University accommodation, living with parents and so on.

The hospitality industry is vast and its segments are each diverse. Each segment helps one another thrive with developments in technology to improve management skills being on the rise.

With all this growth ahead for the hospitality sector, there will be endless possibilities for those who want to enter into this exciting field!

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What Is the Hospitality Industry? Your Complete Guide

What does hospitality mean? What is the hospitality industry, exactly? Where and how did it begin? This post answers all those questions and more as we explore the past, present, and future of hospitality. As we dive deeper into what the industry entails, you’ll discover how hospitality impacts employers, employees, economies, consumers, the environment, and so much more. Whether you’re curious about which businesses are part of the industry, what they do, or how to start a career in hospitality, you’ve come to the right place.

What is the hospitality industry? 

The hospitality industry is a massive business sector. Casting a broad umbrella, it encompasses all economic and business activities that rely upon or contribute to travel and tourism. Hospitality-focused businesses like hotels and travel agencies contribute directly by providing essential services that enable travel and tourism. Suppliers, transportation services, and catering companies may indirectly contribute by delivering the goods and services necessary to keep the industry running; however, they do not solely rely on hospitality for their revenue.

Because the hospitality industry is so expansive, it includes a diverse spectrum of companies, businesses, and experts. Even with so much variety, most hospitality businesses fall into one of four categories.

1. Travel & tourism (T&T)

Although many people think travel and tourism are synonymous with hospitality, that’s not quite the case. More accurately, T&T is a specific category within the hospitality industry. It includes airlines, shuttle services, travel agents, destination marketing organizations (DMOs) , and other businesses or services that help facilitate the physical travel necessary for tourism. Those working in T&T help drive tourists, workers, and businesses to new destinations.

2. Accommodation 

One of the largest and most diverse parts of the hospitality industry is the accommodation sector, which includes everything from lodging to event grounds and special event venues. Numerous different types of hotels and venues fall into this sector, including:

• Chain hotels
• Extended stay properties
• Boutique hotels
• Conference and convention centers
• Wedding venues
• Casinos/casino suites

3. Food & beverage (F&B)

Most hotels and resorts offer their guests some form of food or dining option. Whether operating a café, buffet breakfast, or full-service restaurant, food and beverage services are integrated directly into many hospitality-based businesses. Stand-alone F&B providers, like restaurants or food trucks, operate independently, but they also have a part to play in the local hospitality scene.

Event catering, quick-service establishments, full-service restaurants, and limited-service F&B are powerful revenue drivers contributing to the hospitality industry. In addition to serving in-house hotel guests, F&B is a critical component of meetings and events, from private parties, like birthdays or weddings, to large-scale corporate events .

4. Recreation & entertainment 

Because businesses in the hospitality industry often rely on consumers’ disposable income, they market to customers’ desire for entertainment that refreshes the mind, body, and spirit. In addition to lodging, travel services, and culinary delights, hospitality is full of indoor and outdoor recreation.

Bars, nightclubs, theaters, stadiums, museums, zoos, and other attractions often act as special event venues and tourist attractions, helping to drive a destination’s economy . Spectacular outdoor spaces, including our national and state parks , attract travelers from near and far to feed their local markets.

Whether providing a memorable meal or a relaxing day at the spa, the true purpose of hospitality is to ensure that the customer has an enjoyable experience —whatever they do.

But how did it all get started? How far back do the roots of the hospitality industry actually go? 

When did the hospitality industry begin? 

Although hospitality doesn’t have a designated start date, its traditions date back thousands of years. Ancient symbols of hospitality exist worldwide, with the oldest signs discovered in French caves dating back to 15,000 BCE . Historians and archeologists believe early humans designed the caves to welcome guests and greet visiting tribes.

Xenia, a phrase translating to “the sacred rule of hospitality,” is another early sign of the tradition. In ancient Greece, the custom expressed the law or expectation that hosts would offer protection and kindness to strangers . The Greeks understood that a satisfactory hospitality experience relied on hosts respecting their guests and vice versa. Furthermore, they believed displaying proper hospitality was “fundamental to human civilized life.” Modern hospitality may not look like it did thousands of years ago, but its purpose remains the same.

Is the hospitality industry growing?

Pre-pandemic, the hotel and motel industries (i.e., hospitality) employed approximately 173 million workers . In our primarily post-pandemic world, the hospitality industry and its partners remain massive global employers. 2022 brought 22 million new jobs to the sector, representing an almost 8% increase since 2021. In 2023, the hospitality positions accounted for one of every ten available jobs .

Although many hospitality-focused businesses (e.g., hotels and restaurants) still face staffing shortages , the industry remains one of the largest global employment sectors. From 2022-2023, the international hospitality industry’s value grew at a compound annual growth rate of 7% . The rebound illustrates consumers’ desire to travel again and return to in-person events after restrictions were lifted. Paralleling this demand increase, the World Travel and Tourism Council estimates that the hospitality industry will create 126 million more jobs by 2032 .

How does the hospitality industry impact the environment? 

In 2022, the hospitality industry was responsible for approximately 1% of global carbon emissions . Single-use plastics, high water consumption, energy usage, and excess waste are just a few ways hotels negatively affect their local environment and the overall climate.

To demonstrate a commitment to sustainability , social responsibility, and shifting consumer preferences, the industry is becoming greener through robust global initiatives and innovative day-to-day practices, like these eco-friendly hotel ideas . As consumer attitudes towards environmental conservation and sustainability strengthen, being eco-friendly is no longer optional for most businesses; it’s necessary.

Why work in hospitality? 

If you enjoy making other people happy, hospitality might be right for you. It’s an industry where employees work together to create a welcoming atmosphere, satisfy customers, impress hotel guests , and create an exceptional visitor experience. With hotel, events, dining, planning, travel, custom service, and a wide variety of other roles available, there’s an opportunity for every worker and every personality type.

Hospitality is also a dynamic, fast-paced, and ever-changing field. Just as every guest is different, so is every day working in the industry. Whether working in a hotel or nightclub, you get to encounter diverse types of people with varying backgrounds from all over the world. As you connect with various guests and strive to meet their needs, you’ll get exposed to new cultures and expand your life experience.

Additionally, hospitality offers more flexible scheduling than many other industries, as hospitality businesses often operate outside of traditional 9 a.m. to 5 p.m. office hours. Many young people flock to hotels, restaurants, and similar businesses because of the work-life balance they provide. Working in the industry also comes with a diverse range of perks, such as discounted travel, competitive pay rates, and numerous opportunities to advance your career. 

Become an expert on all things hospitality

How do you get a job in the hospitality industry?

There are many different paths you can take to begin a hospitality career. While some employees start at an entry-level position and work up the ranks, others translate their past professional experience into a hospitality-focused career. Increase your chances of building a successful career in the hospitality industry by:

1. Identifying which hospitality sector best suits you

The hospitality industry includes diverse careers and professions, making it an excellent sector for workers with various skills and personality types. Whether you’re an introvert who prefers to work alone or a bubbly, conversational individual, hospitality has something for everyone. If you want to work in a hotel, consider which department or position best fits you.

• Front desk: Front-facing, customer-focused positions, great for outgoing personality types
• Housekeeping: Back-of-the-house positions, perfect for task-oriented or meticulous employees 
• F&B: Front-facing and back-of-house positions available, often working in a busy, high-stress environment 
• Maintenance: Skill-based and goal-focused positions that require big-picture thinkers with excellent task-management skills 
• Meetings and events: A range of primarily forward-facing positions available for event planners, organizers, coordinators, and more

2. Knowing where to look 

As customer service lies at the heart of hospitality, it’s common for professionals to turn to members of their local network for references, recommendations, and referrals. Many entry-level hospitality jobs are shared through local and employee referrals, the hiring manager’s professional network, or an individual’s social media accounts.

If you already know where you want to work, get to know the people there. Introduce yourself to the management team at hotels, restaurants, and other venues that interest you. If you’re not sure where to start, there are a variety of hospitality employment resources available, including:

• Online advertisements. Online job ads are especially beneficial if you’re new to the industry or a particular destination. If you lack first-person word-of-mouth recommendations, breaking into your local industry may feel intimidating. Keep an eye out for online ads on job boards, local news sites, and search engine results to streamline your search.
• Social media pages. Follow venue Facebook pages, join local hospitality groups, and keep a close eye on the Instagram pages of the hotels or destinations where you want to work. Regularly check social media, scanning for links to external job sites or brand listings.
• Hospitality Online
• iHireHospitality  
• Hospitality Crossing
• Hospitality Confidential
• Wyndham Careers  
• Hyatt Careers
• Marriott International Careers
• Jobs at Hilton
• IHG Careers
• Accor Careers  
• OYO Careers
• Staffing agencies. Staffing and temporary work agencies are fantastic resources for helping individuals get their foot through the door. Although there are various hospitality-specific staffing agencies, like Hospitality Staffing Solutions , it’s also common for local staffing agencies to work directly with nearby hotels as they help fill entry-level positions in guest service, housekeeping, maintenance, and other departments.

3. Expanding your hospitality knowledge

Become a go-to person for all things hospitality, from industry trends to the latest marketing techniques. Stay current on the latest to remain relevant in an increasingly competitive field.

4. Keeping up with industry certifications

Having credentials can significantly impact how quickly you land your dream travel job. Show other hospitality professionals that you’re serious about a career in the industry by holding various certifications, like HubSpot Academy’s Inbound Marketing Certification , a certificate in hospitality revenue management (CRHM), or ServSafe certifications for those involved on the F&B side.

5. Determining your career path 

After exploring the wide and wonderful world of hospitality, pick a career path you’re enthusiastic about. Instead of thinking about where to start, consider where you’d like to go in the industry. Visualizing where you want to end up can help determine which steps you should take to advance your career down a path that speaks to you.

Now you know what the hospitality industry is and why it matters! 

With a better understanding of how far hospitality extends and its immense influence worldwide, it’s easy to see why the industry is growing. To learn more, join us as we examine the most significant trends impacting the hospitality industry in 2023 .

Kim Campbell

Kim is a full-time copy and content writer with many years of experience in the hospitality industry. She entered the hotel world in 2013 as a housekeeping team member and worked her way through various departments before being appointed to Director of Sales. Kim has championed numerous successful sales efforts, revenue strategies, and marketing campaigns — all of which landed her a spot on Hotel Management Magazine’s “Thirty Under 30” list.

Don’t be fooled though; she’s not all business! An avid forest forager, post-apocalyptic fiction fan, and free-sample-fiend, Kim prides herself on being well-rounded.

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What Exactly is the Hospitality Industry? 5 Key Sectors Explained

What is the hospitality industry.

The hospitality industry includes a variety of industries that house, feed, transport, and entertain visitors. Each sector covers a broad range of fields, providing a distinct variety of goods and services. It’s important to note that while separate from one another, they can often overlap and work in conjunction to create one complete and comprehensive hospitality experience. Below, we’ll investigate each sector individually to fully define the hospitality industry.

Five Different Sectors of the Hospitality Industry

While the hospitality industry covers several different services, it can generally be defined through five different sectors. These sectors include food and beverages, lodging, recreation, travel and tourism, and meetings and events. Though each sector is distinct from the next, they often work in conjunction with one another. To learn more about the sectors, what they're comprised of, and how they connect, continue reading below.

1. Food and Beverage Industry

The food and beverage industry consists of the preparation, transportation, and serving of food or beverage to customers. Given the wide variety of options available to customers when it comes to food, this sector has become one of the most successful and easy to identify sectors of the industry. With options ranging from something as simple as a hotel breakfast bar to venues as extravagant as a five-star restaurant, there is no shortage of opportunities in this sector.

Examples of some of the most common food and beverage businesses include:

•Restaurants

•Cafeterias

•Catering companies

•Fast food restaurants

•Third-party delivery services

2. Lodging Industry

The lodging industry consists of businesses that provide overnight accommodations to guests. Depending on the type of service you provide, businesses in the lodging industry can accommodate as few as one or two guests to as many as hundreds. Because of this large range, your experience across different segments of the lodging industry can vary immensely. Below, we’ve listed some of the most common types of lodging businesses:

•Hotels: A hotel is the most common and recognizable type of business in the lodging industry. Often marketed towards vacationers and business travelers, hotels allow guests to rent individual rooms for a set period. Furthermore, hotels often offer their guests a number of amenities such as access to pools, fitness rooms, and complimentary breakfast.

•Vacation rentals: A vacation rental business offers an alternative to traditional hotel stays. These properties are typically owned by individual people or families and listed on websites like Airbnb or Vrbo. They allow travelers to plan a visit for a short amount of time and can often be booked at cheaper prices than hotels.

•Bed and breakfasts: Traditionally, a bed and breakfast is a smaller establishment that accommodates a handful of guests and serves them breakfast in the morning.

3. Recreation Industry

One key sector of the hospitality industry is recreation. In general, businesses in the recreation industry provide customers with ways to entertain themselves, pursue hobbies, or experience educational opportunities. Though they can occasionally last overnight or for long stretches, most recreation can be experienced for just a few hours, such as an afternoon trip. In most cases, businesses in the recreation sector rely on admission tickets, concessions sales, and food and beverage sales to collect revenue.

Below, we've listed some common examples of the recreation industry:

•Amusement parks

•Campgrounds

•Art exhibits

4. Travel and Tourism Industry

Travel and tourism are one of the largest sectors of the hospitality industry. In general, travel and tourism allow people to visit destinations outside of their normal environment. Distance traveled and length of stay vary significantly depending on the context. Some shorter trips can be as brief as a day, such as sleeping overnight while visiting friends or family. Comparatively, some trips can last up to a year, in the case of students studying abroad for a semester.

Of all the sectors in the hospitality industry, the travel and tourism sector has perhaps the most crossover with its counterparts. This is because when people choose to travel, they don't just plan a method of transportation, but rather an entire stay. This can include making reservations such as where to eat, choosing a hotel, identifying attractions they might want to visit, ordering room service, or scheduling business meetings.

5. Meetings and Events Industry

This segment of the hospitality industry consists of a variety of social, business, and sporting events. These events can range from something as intimate as a small wedding to events on a much larger scale, such as an expo. Venues that support the meetings and events industry have become integral to most major cities, not just because of the flexibility they offer, but because of the potential revenue, they can bring in. Because of this, many cities depend on the meetings and events industry to draw people to them and support other local businesses.

Some of the most common types of meetings and events include:

•Sporting events

•Family reunions

•Holiday celebrations

•Business events

•Trade shows

•Farm shows

•Conferences

The hospitality industry is comprised of five sectors that provide a wide range of services and accommodations. Whether you're thinking of going into business in the hospitality industry or just looking to learn more about it, it's important to build an understanding of what each sector does and how they relate to one another.

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The Different Hospitality Sectors Explained

The UK’s hospitality industry is worth around £91 billion, and employees somewhere in the region of 330,000 people*.

The hospitality industry is vast and can be broken down into separate sectors. The top four sectors consist of; ‘Food and Beverage’, ‘Accommodation’, ‘Travel and Tourism’ and ‘Entertainment and Recreation’. Although the industry is segmented, there is significant overlap to improve customer experience.

Below, we’ll explore these sectors and how they interact with each other.

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Food and Beverage

Food and Beverage is the largest of the four hospitality sectors in the UK, and is integrated through all segments of the industry. For example, when a restaurant is part of a hotel, the service it provides can enhance the guest experience by presenting excellent food and first-class customer service.

There are different levels of service within the sector. Quick-service establishments, which offer snack food, have fewer employees in comparison to larger full-service restaurants because they rely on self-service. Restaurants themselves hire differently depending on their style – fast-food and takeaway restaurants tend to hire cheaper, lower-skilled people, whereas fine-dining establishments need to secure more experienced staff.

There are also the food and beverage companies that come to you! Catering businesses offer food and beverage services for any special occasion – from weddings and conferences to buffet and al a carte. More standalone businesses tend to be found in this part of the sector, as opposed to the big brand chains seen in fixed locations.

Accommodation

The accommodation sector is incredibly broad, ranging from caravan grounds right up to luxurious resorts. Essentially, any business that provides a place for people to sleep overnight are all players in this industry.

These businesses market to other market segments based largely on location. Those in cities target business people, long-stay visitors, backpackers, and special travellers (government, airlines, and military). Resorts in more scenic areas are mostly popular among holiday makers where they provide a space for the customer to have a break from their ‘everyday’.

Entertainment and Recreation

Recreation is any activity that people do for rest, relaxation, and enjoyment. The goal of recreation is to refresh a person's body and mind. The entertainment industry relies on its consumers having disposable income. Entertainment businesses such as cinemas or theatres and attractions such as zoos and museums, spectator sports and participatory sports are all parts of the recreation business.

Travel and Tourism

Many people consider tourism synonymous to hospitality, but it is in fact a different sector within the hospitality industry. The major function of tourism is to encourage people to travel in order for people to spend money on hospitality.

All other parts of hospitality rely heavily the success of this all-encompassing sector. Without travel and tourism, all other businesses in any given that location would not be able to grow or even sustain themselves.

You’ll find it hard to locate a business within hospitality that doesn’t combine sectors together. Whether you spend a night away or take a trip to the cinema, you will find that the segments work together to create a greater customer experience. This is why studying a hospitality degree, which covers all four sectors, is imperative for your ascension into the hospitality industry.

*Statistics, based on 2018 information, taken from PlanRadar.com -  https://www.planradar.com/gb/uk-hospitality-industry-growth/#:~:text=The%20UK%20hospitality%20sector%20has,more%20than%20330%2C000%20working%20opportunities.

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The Four Sectors of Hospitality Industry

When the term hospitality gets thrown around, most people’s brains turn to hotels. While hotels and other lodging establishments make up a large part of the industry, there are other players. In fact, there are four main sectors of hospitality industry – entertainment and recreation, food and beverage, lodging, and travel/tourism. Each of these subcategories differs in what they offer customers and how they operate, but all of them are tied by the same core goal – guest satisfaction. Employees working within this industry commit to serving guests with the best experience possible, whether that is through quality food, clean accommodations, or exciting activity possibilities. Because of this, it’s relatively easy for hospitality employees to shift between sectors throughout their careers. Being successful in one area almost always translates to another, because of that common core goal.

Lodging (or Accommodation)

Possibly the most often thought of when it comes to the hospitality industry is the lodging sector. This group includes all establishments designed for temporarily housing individuals. Hotels, bed & breakfasts, and shared accommodation establishments such as hostels and campgrounds all belong to this category. While each of these types of businesses differ greatly in their quality and amenities, they all offer one common thing – a place to sleep for the night (or several nights).  

Some lodging establishments cater specifically to business travelers, offering amenities such as in-room offices and conference rooms. Other places encourage shared experiences. For example, many hostels organize group dinners or walking tours throughout the area. These additions or amenities provide added value to guest stay.

Many players in the lodging sector of hospitality also actively participate in other areas, such as food and beverage and recreation. Many hotels offer on-site dining facilities. Similarly, campgrounds are often associated with outfitters such as floating companies which provide guests recreational activities throughout their stay.

Travel/Tourism

Obviously, when it comes to traveling, people utilize all four sectors of hospitality. However, travel and tourism refer specifically to services that transport people to new locations. Depending on the mode of transportation, this journey can last anywhere from an hour (or less) to days, weeks, and even months.  

The entire tourism sector works together to encourage people to travel for any length of time. That travel can be for business or leisure. Players in the travel sector include airlines, cruise ships, taxi drivers, and train and bus companies. Because there are so many different travel options, the sector is a huge employer of hospitality professionals. One single cruise ship can employ hundreds of thousands of personnel. Combine that with airline staff, bus drivers, and other travel and tourism professionals, the roles are seemingly endless.

Food & Beverage

From food trucks to multiple Michelin star restaurants, the food and beverage sector of hospitality is expansive and constantly evolving. On average, American’s spend over a third of their eating dollar eating outside the home. This may refer to dining out on vacation but can also mean just opting for a restaurant meal on a weeknight rather than cooking at home. Whether you are sourcing a meal from a high-end restaurant or simply grabbing a snow cone from a corner stand, the end goal of each of these establishments is you leaving having enjoyed what you ate or drank and satisfied with the service received.

Being an active supplier in the food/beverage sector doesn’t necessarily mean that an establishment only offers these items. For many businesses, such as movie theaters or amusement parks, food and drinks are simply an added offering to their main goods and services. Thus, this section of hospitality includes businesses operating in a variety of industries.

Entertainment & Recreation

The final subcategory within the industry is recreation and entertainment. Don’t let the name “recreation” fool you. This sector doesn’t just involve providing opportunities for guests to actively do something (i.e. bowling alley). It also refers to businesses providing guests with the opportunity to do nothing like a spa or simply a beach umbrella stand. Recreation refers to all activities that bring joy or relaxation. When it comes to entertainment, this refers mainly to attractions or establishments offering shows or unique experiences. Some examples of leading members of the entertainment sector include amusement parks, movie theaters, golf courses, and concert venues.  

Job Hunting in the Hospitality Industry

One of the great things about jobs in hospitality is that the core soft skills required to be successful in most roles transfer to others. Being successful in hospitality requires a customer-service orientation. Going the extra mile to ensure guest satisfaction shows a commitment to the overall goals of the organization. Managers certainly take note of this. Additionally, traits like attention to detail, punctuality, and a growth mindset also serve you well in the industry. Whether you start as a housekeeper, a bartender, or a hotel concierge – transitioning into other roles in hospitality is always a possibility.  

Seeking out roles in which to start doesn’t have to be difficult either. In fact, we keep an updated database of current openings throughout the United States that stretch across most hospitality sectors. There is a role for nearly everyone willing to put in the hard work to support the business. Our 3-Minute Application Process makes starting a career in hospitality a breeze – it’s just up to you to take that first step!

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• Exploring the Different Components of the Hospitality Industry

The hospitality industry is a vast and complex sector, with many different components that make up its whole. From food and drink to accommodation, travel and tourism, and entertainment and recreation, the industry is segmented into four main sectors. Each of these sectors has its own unique characteristics and offers a variety of services to customers. The accommodation sector is all about providing people with a place to stay.

This can range from small local bed and breakfasts to hotels, hostels, and shared houses such as AirBnB and Couchsurfing. Depending on your budget, destination, and needs, you can choose from a variety of accommodation options. The food and beverage sector makes up 26% of the hospitality industry. This includes restaurants, bars, cafes, and any other food market where people gather to socialize, eat, and drink.

As consumer demands change, more innovative concepts are emerging to keep customers entertained. Travel and tourism are often grouped together in one sector, but they are actually two distinct business areas. Tourism is a broad term that is often used in conjunction with hospitality. Many degrees in the field are called Hospitality and Tourism Management.

The tourism sector includes tourist offices, destination management companies (such as Visit London or Visit New York), and tour operators that allow travelers to explore their destination in different ways. The entertainment and recreation sector is not just about activities that require identification for people over 18. It also includes attractions for younger audiences that often host entertainment activities. The hospitality industry is a large group of companies that provide services to consumers. Airlines and other modes of travel, accommodation, and food and beverage services are the three main parts of the hospitality industry.

As it is not a necessity of life but rather an experience for leisure or enjoyment, hospitality services allow hotel brands to create many more customer contact points with their target markets and gather more information to help them create an ecosystem of services that could benefit from each other. The global impact of the coronavirus on companies in the hotel industry has meant that fewer people can travel due to imposed travel restrictions. This has had an effect on the number of available jobs in the hospitality industry. However, many employers still advertise vacancies on different platforms and channels for those looking for careers in hospitality management .

In order to be successful in this field, it is important to develop skills such as cultural awareness, multitasking, customer service, and communications in order to effectively deliver outstanding customer experiences. Additionally, many large corporations are choosing to eliminate single-use plastics from their daily operations in order to be more sustainable - something that the hospitality space is also doing. Hospitality is derived from the Latin word “hospes” which means host - one who provides accommodation or entertainment to a guest or visitor - and has been around since ancient times. To learn more about different careers in hospitality, read “An Overview of Different Careers in Hospitality” for a breakdown of the most common positions available with descriptions of what each job entails.

• hospitality industry
• accommodation sector
• food & beverage sector
• travel & tourism sector
• entertainment & recreation sector

Glenda Effler

General travel expert. Subtly charming tvaholic. Friendly social media trailblazer. Avid pizza enthusiast. Certified bacon trailblazer. Award-winning music lover.

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The Four Sectors of the Hospitality Industry

Do you want to learn about how to be successful in the hospitality industry? It starts by knowing about the four sectors of the hospitality industry. Each one of these–while focusing on making sure to provide a hospitable environment–provides a very different experience for the client, and is filled with unique challenges that can only be mastered by a veteran of the hospitality industry. These hospitality industry examples are here to help someone who is just learning how to get into the hospitality industry and wants to make sure that outside of receiving a degree in hospitality they are focusing their professional and personal career on the sector they are the most passionate about. 

Food and Beverage

Most commonly known as F and B, the food and beverage industry is the largest sector of the hospitality industry, estimated to bring in around 50% of all meals eaten in the US today. As a part of the hospitality sector food and beverage, you are presenting food to be eaten almost immediately by clients, either by guests in a hotel or restaurant or even by providing drinks in a bar or a speakeasy. Those who work in the food and beverage sector are passionate about creating a culinary experience that will be both memorable and comforting. 

Travel and Tourism 

Besides F and B, most people who are learning about how to get into the hospitality industry are usually imagining the travel and tourism sector of the hospitality industry as their main focus. These industries are about providing an experience during traveling. Regardless if this client is traveling for business or pleasure, the purpose of someone in the travel and tourism industry is to guarantee that their clients and their concerns are dealt with before they even arise. This can be anything from travel agents, working on a cruise liner, or even leading a walking tour of a historic landmark in a city. 

Lodging 

Another hospitality industry example is lodging. From working at the front desk of a hotel to being a concierge, working in lodging is making sure a guest feels like your hotel is their home away from home. Lodging is not just hotels though, it’s any type of home that is meant to provide safety and security (and also a positive experience) to guests who are traveling away from home. It also includes Airbnb, hostels, campgrounds, and more.  

Recreation and Entertainment 

For those who want to be surrounded by thrills and excitement, a career in the sector of the hospitality industry known as recreation and entertainment is a promising and rewarding path. This covers a wide range of hospitality opportunities, from running a music venue, a museum, or a movie theater, to any other outgoing opportunities. 

Where can you Learn How to be Successful in the Hospitality Industry?  

Do you know where you want to shine in the hospitality industry? Making sure you are following the path toward success out of school is just half of the battle. Getting a bachelor of arts in hospitality management is your way to learn the fundamentals of creating an inviting and positive environment guests will rave about. The Hospitality program gives you transferable skills that will prepare you for a career with others in your field. 

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"People want to travel": 4 sector leaders say that tourism will change and grow

The global travel and tourism industry's post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. Image:  Unsplash/Anete Lūsiņa

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Shinya katanozaka, gilda perez-alvarado, stephen kaufer.

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• In 2020 alone, the travel and tourism industry lost $4.5 trillion in GDP and 62 million jobs - the road to recovery remains long.
• The World Economic Forum’s latest Travel & Tourism Development Index gives expert insights on how the sector will recover and grow.
• We asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

The global travel and tourism sector’s post-pandemic recovery is gaining pace as the world’s pent-up desire for travel rekindles. The difference in international tourist arrivals in January 2021 and a similar period in January 2022 was as much as the growth in all of 2021. However, with $4.5 trillion in GDP and 62 million jobs lost in 2020 alone, the road to recovery remains long.

A few factors will greatly determine how the sector performs. These include travel restrictions, vaccination rates and health security, changing market dynamics and consumer preferences, and the ability of businesses and destinations to adapt. At the same time, the sector will need to prepare for future shocks.

The TTDI benchmarks and measures “the set of factors and policies that enable the sustainable and resilient development of the T&T sector, which in turn contributes to the development of a country”. The TTDI is a direct evolution of the long-running Travel and Tourism Competitiveness Index (TTCI), with the change reflecting the index’s increased coverage of T&T development concepts, including sustainability and resilience impact on T&T growth and is designed to highlight the sector’s role in broader economic and social development as well as the need for T&T stakeholder collaboration to mitigate the impact of the pandemic, bolster the recovery and deal with future challenges and risks. Some of the most notable framework and methodology differences between the TTCI and TTDI include the additions of new pillars, including Non-Leisure Resources, Socioeconomic Resilience and Conditions, and T&T Demand Pressure and Impact. Please see the Technical notes and methodology. section to learn more about the index and the differences between the TTCI and TTDI.

The World Economic Forum's latest Travel & Tourism Development Index highlights many of these aspects, including the opportunity and need to rebuild the travel and tourism sector for the better by making it more inclusive, sustainable, and resilient. This will unleash its potential to drive future economic and social progress.

Within this context, we asked four business leaders in the sector to reflect on the state of its recovery, lessons learned from the pandemic, and the conditions that are critical for the future success of travel and tourism businesses and destinations.

Have you read?

Are you a 'bleisure' traveller, what is a ‘vaccine passport’ and will you need one the next time you travel, a travel boom is looming. but is the industry ready, how to follow davos 2022, “the way we live and work has changed because of the pandemic and the way we travel has changed as well”.

Tony Capuano, CEO, Marriott International

Despite the challenges created by the COVID-19 pandemic, the future looks bright for travel and tourism. Across the globe, people are already getting back on the road. Demand for travel is incredibly resilient and as vaccination rates have risen and restrictions eased, travel has rebounded quickly, often led by leisure.

The way many of us live and work has changed because of the pandemic and the way we travel has changed as well. New categories of travel have emerged. The rise of “bleisure” travel is one example – combining elements of business and leisure travel into a single trip. Newly flexible work arrangements, including the opportunity for many knowledge workers to work remotely, have created opportunities for extended travel, not limited by a Monday to Friday “9 to 5” workweek in the office.

To capitalize on this renewed and growing demand for new travel experiences, industry must join governments and policymakers to ensure that the right conditions are in place to welcome travellers as they prepare to get back on the road again, particularly those who cross international borders. Thus far, much of the recovery has been led by domestic and leisure travel. The incremental recovery of business and international travel, however, will be significant for the broader industry and the millions who make their livelihoods through travel and tourism.

Looking ahead to future challenges to the sector, be they public health conditions, international crises, or climate impacts, global coordination will be the essential component in tackling difficult circumstances head-on. International agreement on common – or at least compatible – standards and decision-making frameworks around global travel is key. Leveraging existing organizations and processes to achieve consensus as challenges emerge will help reduce risk and improve collaboration while keeping borders open.

“The travel and tourism sector will not be able to survive unless it adapts to the virtual market and sustainability conscience travellers”

Shinya Katanozaka, Representative Director, Chairman, ANA Holdings Inc.

At a time when people’s movements are still being restricted by the pandemic, there is a strong, renewed sense that people want to travel and that they want to go places for business and leisure.

In that respect, the biggest change has been in the very concept of “travel.”

A prime example is the rapid expansion of the market for “virtual travel.” This trend has been accelerated not only by advances in digital technologies, but also by the protracted pandemic. The travel and tourism sector will not be able to survive unless it adapts to this new market.

However, this is not as simple as a shift from “real” to “virtual.” Virtual experiences will flow back into a rediscovery of the value of real experiences. And beyond that, to a hunger for real experiences with clearer and more diverse purposes. The hope is that this meeting of virtual and actual will bring balance and synergy the industry.

The pandemic has also seen the emergence of the “sustainability-conscious” traveller, which means that the aviation industry and others are now facing the challenge of adding decarbonization to their value proposition. This trend will force a re-examination of what travel itself should look like and how sustainable practices can be incorporated and communicated. Addressing this challenge will also require stronger collaboration across the entire industry. We believe that this will play an important role in the industry’s revitalization as it recovers from the pandemic.

How is the World Economic Forum promoting sustainable and inclusive mobility systems?

The World Economic Forum’s Platform for Shaping the Future of Mobility works across four industries: aerospace and drones; automotive and new mobility; aviation travel and tourism; and supply chain and transport. It aims to ensure that the future of mobility is safe, clean, and inclusive.

• Through the Clean Skies for Tomorrow Coalition , more than 100 companies are working together to power global aviation with 10% sustainable aviation fuel by 2030.
• In collaboration with UNICEF, the Forum developed a charter with leading shipping, airlines and logistics to support COVAX in delivering more than 1 billion COVID-19 vaccines to vulnerable communities worldwide.
• The Road Freight Zero Project and P4G-Getting to Zero Coalition have led to outcomes demonstrating the rationale, costs and opportunities for accelerating the transition to zero emission freight.
• The Medicine from the Sky initiative is using drones to deliver vaccines and medicine to remote areas in India, completing over 300 successful trials.
• The Forum’s Target True Zero initiative is working to accelerate the deployment and scaling of zero emission aviation, leveraging electric and hydrogen flight technologies.
• In collaboration with the City of Los Angeles, Federal Aviation Administration, and NASA, the Forum developed the Principles of the Urban Sky to help adopt Urban Air Mobility in cities worldwide.
• The Forum led the development of the Space Sustainability Rating to incentivize and promote a more safe and sustainable approach to space mission management and debris mitigation in orbit.
• The Circular Cars Initiative is informing the automotive circularity policy agenda, following the endorsement from European Commission and Zero Emission Vehicle Transition Council countries, and is now invited to support China’s policy roadmap.
• The Moving India network is working with policymakers to advance electric vehicle manufacturing policies, ignite adoption of zero emission road freight vehicles, and finance the transition.
• The Urban Mobility Scorecards initiative – led by the Forum’s Global New Mobility Coalition – is bringing together mobility operators and cities to benchmark the transition to sustainable urban mobility systems.

Contact us for more information on how to get involved.

“The tourism industry must advocate for better protection of small businesses”

Gilda Perez-Alvarado, Global CEO, JLL Hotels & Hospitality

In the next few years, I think sustainability practices will become more prevalent as travellers become both more aware and interested in what countries, destinations and regions are doing in the sustainability space. Both core environmental pieces, such as water and air, and a general approach to sustainability are going to be important.

Additionally, I think conservation becomes more important in terms of how destinations and countries explain what they are doing, as the importance of climate change and natural resources are going to be critical and become top of mind for travellers.

The second part to this is we may see more interest in outdoor events going forward because it creates that sort of natural social distancing, if you will, or that natural safety piece. Doing outdoor activities such as outdoor dining, hiking and festivals may be a more appealing alternative to overcrowded events and spaces.

A lot of lessons were learned over the last few years, but one of the biggest ones was the importance of small business. As an industry, we must protect small business better. We need to have programmes outlined that successfully help small businesses get through challenging times.

Unfortunately, during the pandemic, many small businesses shut down and may never return. Small businesses are important to the travel and tourism sector because they bring uniqueness to destinations. People don’t travel to visit the same places they could visit at home; they prefer unique experiences that are only offered by specific businesses. If you were to remove all the small businesses from a destination, it would be a very different experience.

“Data shows that the majority of travellers want to explore destinations in a more immersive and experiential way”

Steve Kaufer, Co-Founder & CEO, Tripadvisor

We’re on the verge of a travel renaissance. The pandemic might have interrupted the global travel experience, but people are slowly coming out of the bubble. Businesses need to acknowledge the continued desire to feel safe when travelling. A Tripadvisor survey revealed that three-quarters (76%) of travellers will still make destination choices based on low COVID-19 infection rates.

As such, efforts to showcase how businesses care for travellers - be it by deep cleaning their properties or making items like hand sanitizer readily available - need to be ingrained within tourism operations moving forward.

But travel will also evolve in other ways, and as an industry, we need to be prepared to think digitally, and reimagine our use of physical space.

Hotels will become dynamic meeting places for teams to bond in our new hybrid work style. Lodgings near major corporate headquarters will benefit from an influx of bookings from employees convening for longer periods. They will also make way for the “bleisure” traveller who mixes business trips with leisure. Hotels in unique locales will become feasible workspaces. Employers should prepare for their workers to tag on a few extra days to get some rest and relaxation after on-location company gatherings.

Beyond the pandemic, travellers will also want to explore the world differently, see new places and do new things. Our data reveals that the majority want to explore destinations in a more immersive and experiential way, and to feel more connected to the history and culture. While seeing the top of the Empire State building has been a typical excursion for tourists in New York city, visitors will become more drawn to intimate activities like taking a cooking class in Brooklyn with a family of pizza makers who go back generations. This will undoubtedly be a significant area of growth in the travel and tourism industry.

Governments would be smart to plan as well, and to consider an international playbook that helps prepare us for the next public health crisis, inclusive of universal vaccine passports and policies that get us through borders faster.

Understanding these key trends - the ongoing need to feel safe and the growing desire to travel differently - and planning for the next crisis will be essential for governments, destinations, and tourism businesses to succeed in the efforts to keep the world travelling.

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The 5 Different Sectors of the Hospitality Industry

Overview of all hospitality sectors.

Thanks to a highly diverse range of services, the hospitality sector enjoys a huge variety of business enterprises. While many of these goods or jobs revolve around creating an inviting and comfortable atmosphere for clients, they can also include helping people plan their own events, setting up environments to promote recreation, or catering to the needs of various professionals. As someone who may want to get into hospitality, it is important to understand the main branches of the industry.

Our article here can take you through some of the top sections that go into hospitality, and we will explain some of the key factors governing each one. No matter what your future in this business holds, it is likely that you’ll work in areas such as accommodations, food service, the traveling part of hospitality, basic entertainment, or how to plan for professional meetings and events.

Different Key Sectors Explained

Before we begin, we can offer some short explanations of the key sectors you’ll encounter in this business. It is a good idea to remember that this is an industry with segments. Although each segment maintains its own operations, other segments connect together. This presents some significant overlap within hospitality. Unlike a more isolated job, a career in hospitality might mean that you’ll need a wide range of skills you can use across multiple sectors. For example, your primary training might be in managing guest accommodations .

However, some of your duties may include learning about how the food and beverage options at your establishment work, or guests may ask you about local tourism. In either case, you’ll need some knowledge from different sections of the business in order to help them to the fullest extent. Additionally, there could be various levels of skill within each segment. Your future employers might expect a particularly high level of advanced knowledge from you in your chosen sector, but you may have lighter duties when you need to operate in an adjacent area of hospitality.

In the following sections, we will outline the key aspects of each of the major segments that most companies in the industry would consider vital to the success of a business . While the main focus will be on the primary duties or operations in a given sector, we’ll also dive into just how one might overlap with some of the others. Understanding how different parts of the business form relationships with each other is a big step toward being able to provide the highest quality of services that you can, further increasing guest satisfaction and customer retention.

1. Lodging or Accommodation

Accommodations within the industry will involve any venue at which guests will stay. These might include hostels, budget motels, private rental properties, or the hotel chains with which many travelers are familiar. While food and drink might represent the largest share of hospitality in some regions of the world, the accommodations sector serves as the backbone supporting everything else. Most management strategies within hospitality will place much emphasis on just what amenities lodging is able to offer to clients.

Aside from many of the types of locations we've mentioned, the hospitality industry can also construct entire resorts that provide high-quality accommodations to their customers. Many companies will put the focus on their rooms or physical locations, but resorts include easy access to the other pillars of hospitality we talk about here.

2. Food and Beverage

Depending on the specific global region on which you might focus, food and beverage might be the largest of the sectors in the hospitality industry. After all, even restaurants alone serve in some capacity here, and there are many types from which to choose in almost every major tourist location. A business can amplify this effect even further if a dedicated restaurant is part of the lodging area for guests . Even if this place is not part of the hotel itself, clients may ask staff about nearby recommendations for dining. Either case involves food or beverage as part of the experience, but there are other levels that we should consider here.

Some tourist locations may have parameters that emphasize fast service. Usually, this practice will result in the business hiring fewer employees than one might see at a more typical dining establishment. In fact, some small shops may have no on-site staff at all. Aside from stocking shelves, technology has allowed some businesses to let customers serve themselves and pay for items without needing to interact with any employees at all.

Conversely, fine dining restaurants will need staff with years of experience in order to provide the level of service guests might expect. Chefs, servers, and other members of house staff will need to show a great degree of skill and dedication to propel the hospitality industry forward here. Restaurants without a reputation for fine dining may need staff without quite so many skills, but they are no less important to how the food and beverage side of things may work in this business. Further, some businesses come to the client and try to meet their exact needs for each situation. This is where catering services might come into play.

3. Travel and Tourism

When experienced travelers think of tourism, this might conjure opinions or feelings about the hospitality industry as a whole. Tourism is certainly a huge part of hospitality, but those analyzing or working within the industry usually consider it to be its own segment. Tourism’s primary goal is to encourage the free and open travel of clients who will be in need of more general hospitality services. You can think of tourism as one of the means by which hospitality gathers new clients in order to increase the latter’s revenue streams. When people travel, they need all of the other things hospitality can provide, particularly the major points we’re talking about here.

It would not be unfair to say that all other parts of hospitality rely on successful tourism in order to function at a high level. If you’ve traveled, you may have heard about either tourist cities or tourist spots within certain cities. Some of the more popular places around the world enjoy robust local economies thanks to successful tourism. In these situations, any business that is part of hospitality may have trouble sustaining itself if tourism is largely absent from the area. Some restaurants may be able to draw local crowds, but whether that would be enough business to sustain them entirely is another matter. Similarly, hotels rely on a steady stream of clients passing through in order to stay profitable. The cogs of tourism are what keep the rest of the hospitality machine moving smoothly.

However, travel or tourism will contain separate industries that might tie back to the rest of hospitality. This is where some of the segments may overlap, and you can also use tourism as a way to see how you may need skills across multiple disciplines. Creating packages for tourists, vehicle rentals, flights, or even some transportation by waterways are all parts of the tourism side of this business. Guests may expect you to be able to arrange or recommend different options within each of these modes of travel.

On a related note, having some of this knowledge about the rest of the major pillars of hospitality could be essential to a fine career in tourism or travel. A specialist in this field should be able to help clients navigate accommodations, food, entertainment, and more. It could help you to have some experience in adjacent industries, too. Travel agencies themselves are a big part of this, and financial services for travels can be just as important here. Financial protection, insurance products, or medical packages are all things many customers will want to take advantage of before they begin their journeys to parts unknown.

4. Entertainment and Recreation

Many people go to places around the world just to see some new sights and experience other cultures. However, other travelers look for different versions of their favorite entertainments or recreational activities, too. Local or regional entertainment options make up a huge part of the hospitality industry. If you work in one of these places within a particularly touristic city, you have a hand in keeping the hospitality sector afloat.

In some cases, a simple massage might be a recreational activity, and many hotels offer services like this one to their guests. Just as with other parts of the business, some entertainment options overlap with other parts of the industry. A nightclub in a bustling city provides a wealth of entertainment to its patrons, but it also acts as a provider of food and beverages as well.

Large cinemas, traditional theaters with live-action productions on a stage, comedy clubs, museums, zoos, aquariums, sporting events, and even shopping are all parts of the entertainment or recreation segments of hospitality. This part of the business caters to clients who tend to have disposable income beyond what they’ve spent on the accommodations and travel in order to get to the destination itself.

Even historical sites are part of the entertainment side of things. Anything you can do to give clients activities to enjoy during their stay will be part of this business, and any job you perform to this effect makes you a part of it. An establishment may have its own casino, for example. Otherwise, there may be one nearby. Some hotels go up in prime locations that cater to clientele looking for everything from museums to sporting arenas in one area that is easy to navigate.

If you desire a career in travel management specifically, you’ll become familiar with the various entertainment options available to clients within a given region. This sort of position usually means that you’ll try to optimize all aspects of a trip for your customer. In doing so, you’ll help them take care of modes of travel, means of getting around once they arrive at their destinations, accommodations, food options, and all of the entertainment that might be available to them. You could even become the manager of a travel company yourself, but you would need to learn the major aspects of all the segments we’re covering here.

5. Timeshare and Meetings

You may be familiar with the seminars that involve timeshares. Generally, these events help prospective owners see the benefits of using such a property for either recreation or business ventures. A timeshare is any dwelling that has its own usage rights or ownership details divided between multiple people at once. For example, condominium units on or near resort locations are popular options for many people. Each person with a stake in the unit will have their own period of time during the year when they have usage rights to the property. In essence, they would become the owner of the property for the duration they outline in the usage agreement.

You may hear some industry experts call timeshares vacation ownership packages. While using such a place as a vacation spot is certainly a popular option, keeping your allotment for business purposes can make you a part of the hospitality industry as well. Similarly, you may be the owner of the property outright. In this case, you may wish to turn it into a vacation rental in order to increase the number of revenue streams at your disposal.

Should you decide to go this route, you can offer your property to different businesses at various times during the year. There are multiple ways in which you can set all of this up, and the paths you might take can offer a little or a lot of flexibility to your clients. Many businesses need locations like these in order to host seminars, new hire training courses, team-building retreats, and more. If you are a vacation rental owner, you can think of yourself in an accommodations management position within the hospitality industry itself.

Different clients may buy slots in your timeshare that they would want to use at regular intervals. If so, you’d be responsible for the upkeep of the property. A big part of this may include making sure the location has all the proper amenities that your guests might expect. What this category includes can vary according to the length of the client’s stay and what they will be doing while they are using the site. In some ways, you may run the property similarly to any other part of the accommodations segment of the hospitality industry.

As an umbrella that provides different goods or services to patrons, hospitality is a versatile and ever-growing sector. While we’ve outlined some of the major points of each of the sectors within the business here, it is a good idea to narrow your focus on the kinds of interests and skills you have already. In doing so, you can figure out which section is the right fit for you. There are also training courses, certifications, and degrees you can get to further improve your skills and viability as a hospitality professional .

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How Does The Hospitality Industry Relate To The Larger Travel And Tourism Industry

Published: December 12, 2023

Modified: December 28, 2023

by Britney Gamache

• Hotel Reviews
• Hotels & Accommodation

Introduction

The hospitality industry and the travel and tourism industry are two interconnected sectors that play a significant role in the global economy. The hospitality industry encompasses a wide range of businesses, including hotels, restaurants, cruise lines, and event planning companies, while the travel and tourism industry focuses on facilitating travel and leisure activities for individuals and groups.

Both industries rely on each other for their success and growth, as they mutually benefit from the increased demand for travel and tourism. In this article, we will explore the relationship between the hospitality industry and the travel and tourism industry, and examine how they work together to create memorable experiences for travelers around the world.

The hospitality industry is primarily responsible for providing accommodation, catering services, and entertainment to travelers. It strives to create a comfortable and welcoming environment for guests, ensuring their stay is enjoyable and hassle-free. On the other hand, the travel and tourism industry focuses on organizing and promoting travel experiences, including vacation packages, sightseeing tours, and transportation options.

These two industries are closely linked, as the success of one directly impacts the other. For instance, the availability of good-quality hotels and restaurants can attract more tourists to a destination, thereby boosting the local travel and tourism industry. Similarly, a well-organized and appealing travel package can drive more visitors to a specific hotel or resort, benefiting the hospitality industry in return.

In the following sections, we will explore the interconnectivity between the hospitality and travel industries, the impact they have on each other, the ways in which they collaborate and cooperate, and the challenges and opportunities that arise within the hospitality industry in the context of the travel and tourism sector.

Definition and Overview of the Hospitality Industry

The hospitality industry encompasses a diverse range of businesses and services that focus on providing accommodation, food and beverage, and entertainment experiences to guests. It is a broad sector that includes hotels, resorts, restaurants, bars, clubs, cruise lines, event planning companies, and more.

At its core, the hospitality industry aims to create a positive and memorable experience for guests by offering exceptional customer service, comfortable accommodations, and quality dining options. Whether it is a luxury hotel pampering its guests with personalized amenities or a local restaurant serving delicious cuisine, the industry revolves around satisfying the needs and desires of the customer.

Hotels and resorts are a significant part of the hospitality industry, offering various types of accommodations ranging from budget-friendly options to high-end luxury suites. These establishments provide overnight stays, often with additional services such as room service, housekeeping, and recreational facilities like swimming pools, spas, and fitness centers. They aim to provide a home away from home for travelers, ensuring their comfort and convenience throughout their stay.

Restaurants and bars are integral components of the hospitality industry, offering dining and beverage experiences to both guests and locals. From casual cafes to fine dining establishments, these venues provide a wide range of culinary options and atmospheres to suit different tastes and preferences. They play a vital role in the overall experience of travelers, offering a taste of the local cuisine and culture.

Cruise lines are also part of the hospitality industry, offering all-inclusive travel experiences on luxurious ships. Passengers can enjoy a wide range of amenities and activities, including dining, entertainment, and recreational facilities, while exploring multiple destinations. Cruise lines focus on providing a unique and immersive experience for their guests, combining the comfort and luxury of a hotel with the adventure of traveling to different ports.

Event planning companies are another segment of the hospitality industry, specializing in organizing and executing various types of events, such as conferences, weddings, and exhibitions. These companies handle every aspect of event management, from venue selection and logistics to catering and entertainment. They ensure that attendees have a seamless and enjoyable experience, whether it is a business conference or a social gathering.

The hospitality industry is constantly evolving to meet the changing needs and preferences of travelers. With advancements in technology and the rise of the digital age, online booking platforms and review websites have become integral parts of the hospitality landscape. This accessibility and transparency have empowered travelers to make informed choices and have a voice in shaping the industry.

In summary, the hospitality industry encompasses a wide range of businesses that focus on providing accommodations, food and beverage, and entertainment experiences to guests. It plays a crucial role in creating memorable and enjoyable experiences for travelers and is constantly adapting to meet the needs of a diverse and ever-changing customer base.

Definition and Overview of the Travel and Tourism Industry

The travel and tourism industry is a sector that encompasses various activities and services related to leisure, recreation, and travel. It involves the movement of people from one location to another for various purposes, such as leisure, business, education, or cultural exploration. The industry comprises different components, including transportation, accommodation, attractions, and tour operators.

At its core, the travel and tourism industry aims to facilitate and enhance travel experiences for individuals and groups. It focuses on providing services and infrastructure that support and promote travel, making it accessible, enjoyable, and convenient for travelers around the world.

Transportation is a crucial component of the travel and tourism industry, as it enables people to move from one place to another. This includes air travel, with airlines offering domestic and international flights, as well as ground transportation options like trains, buses, and car rentals. The industry strives to provide efficient and comfortable transportation services to meet the diverse needs of travelers.

Accommodation is another vital aspect of the travel and tourism industry. It encompasses different types of lodging options, ranging from hotels and resorts to vacation rentals and hostels. The industry aims to provide a wide range of accommodations to suit various budgets and preferences, ensuring that travelers have a comfortable and enjoyable stay during their trips.

Attractions and activities are integral to the travel and tourism industry, as they provide the reasons and motivations for people to travel. These attractions can include natural wonders, historical sites, cultural landmarks, theme parks, museums, and more. The industry works to develop and maintain these attractions, creating unique and memorable experiences for visitors.

Tour operators are an essential part of the travel and tourism industry, as they specialize in organizing and facilitating travel experiences. They offer packaged tours and itineraries that combine transportation, accommodation, attractions, and activities. Tour operators play a crucial role in providing convenience and expertise to travelers, allowing them to explore new destinations and experience different cultures without the hassle of planning everything themselves.

The travel and tourism industry is a significant contributor to the global economy, generating employment opportunities and fostering economic growth in many countries. It serves as a means of cultural exchange, fostering understanding and appreciation between different nations and communities.

In recent years, sustainability and responsible tourism have gained importance within the travel and tourism industry. There is a growing emphasis on reducing the environmental impact of travel, supporting local communities, and preserving cultural heritage. The industry is constantly evolving to promote more sustainable practices and ensure the long-term viability of travel and tourism.

In summary, the travel and tourism industry encompasses various activities and services that facilitate travel and leisure experiences. It focuses on providing transportation, accommodation, attractions, and tour operator services to create memorable and enjoyable travel experiences for individuals and groups. The industry plays a vital role in global economic development and cultural exchange, and is increasingly embracing sustainable practices for the benefit of future generations.

Interconnectivity between the Hospitality and Travel Industries

The hospitality industry and the travel industry are highly interconnected and rely on each other for their success and growth. They work hand in hand to create seamless and enjoyable travel experiences for individuals and groups. Let’s explore the ways in which these two industries are interconnected:

1. Demand and Supply: The hospitality industry responds to the demand created by the travel industry. As more people choose to travel for leisure or business, the need for accommodations, food, and entertainment increases. This prompts the hospitality industry to expand its offerings and improve its services to meet the rising demand. Similarly, the travel industry plays a crucial role in creating new opportunities for the hospitality industry by promoting and marketing destinations and attractions.

2. Destination Promotion: The hospitality industry plays an important role in promoting travel destinations. Hotels, resorts, and restaurants often collaborate with tourism boards and travel agencies to showcase the unique features of their location and attract travelers. They provide information about local attractions, cultural experiences, and dining options, thus contributing to the overall promotion of the destination.

3. Customer Experience: The hospitality industry is responsible for ensuring a positive customer experience during travel. From the moment travelers check into a hotel or dine at a local restaurant, their experience is shaped by the quality of service provided by the hospitality industry. The travel industry relies on this positive experience to encourage repeat visits and recommendations from satisfied travelers.

4. Ancillary Services: The travel industry relies on the hospitality industry for ancillary services that enhance travel experiences. These services include airport transfers, concierge services, guided tours, and event planning. By partnering with hotels and other hospitality establishments, the travel industry can provide a comprehensive range of services to travelers, making their journey more convenient and enjoyable.

5. Feedback Loop: The hospitality industry plays a crucial role in providing valuable feedback to the travel industry. Hotels, resorts, and restaurants gather feedback from guests and share it with travel agencies and tour operators. This feedback helps them understand travelers’ preferences, interests, and concerns, allowing them to customize and improve their offerings. This, in turn, benefits the travel industry by ensuring that the services and experiences they promote align with customer expectations.

Overall, the interconnectivity between the hospitality and travel industries is crucial for creating exceptional travel experiences. They rely on each other to meet the demands of travelers, promote destinations, enhance customer experiences, provide ancillary services, and continuously improve their offerings. By working together, these industries contribute to the growth and success of the global travel and tourism sector.

Impact of the Hospitality Industry on the Travel and Tourism Industry

The hospitality industry has a significant impact on the travel and tourism industry, shaping the overall travel experience and contributing to the growth and success of the sector. Let’s explore the various ways in which the hospitality industry influences the travel and tourism industry:

1. Accommodation Options: The hospitality industry provides a wide range of accommodation options, including hotels, resorts, vacation rentals, and more. These establishments play a crucial role in attracting travelers to destinations, as the availability of comfortable and reliable accommodations is a key factor in travel decision-making. The variety of accommodation offerings enhances the appeal of a destination and contributes to its overall tourism potential.

2. Service Quality: The hospitality industry strives to provide exceptional customer service, ensuring that guests have a pleasant and memorable experience during their stay. This high standard of service enhances the overall travel experience and contributes to customer satisfaction. Travelers who have positive experiences with hospitality establishments are more likely to recommend the destination to others and revisit the location in the future.

3. Destination Promotion: The hospitality industry actively participates in destination promotion and marketing efforts. Hotels, resorts, and other hospitality establishments often collaborate with tourism boards and travel agencies to showcase the unique features and attractions of a destination. By highlighting local experiences, cultural heritage, and culinary offerings, the hospitality industry contributes to the overall promotion and branding of the destination, attracting more tourists in the process.

4. Economic Impact: The hospitality industry plays a significant role in the economic growth of a destination. It generates employment opportunities and stimulates local businesses, contributing to the overall prosperity of the community. The revenue generated by the hospitality industry through accommodations, food and beverage services, and entertainment activities also supports infrastructure development and conservation efforts within the travel and tourism sector.

5. Customer Satisfaction and Repeat Visits: The hospitality industry’s commitment to providing excellent service and creating memorable experiences leads to high levels of customer satisfaction. Satisfied travelers are more likely to recommend the destination to others and revisit the location themselves. This positive feedback and word-of-mouth promotion benefit the travel and tourism industry, attracting more visitors and fostering a positive tourism reputation for the destination.

6. Collaboration with Travel Operators: The hospitality industry collaborates with tour operators and travel agencies to create comprehensive travel packages and experiences. This collaboration helps promote destinations, attract more tourists, and offer seamless travel experiences to customers. The partnership between the hospitality and travel industries ensures that travelers have access to a wide range of services and activities, enhancing their overall travel experience.

In summary, the hospitality industry has a significant impact on the travel and tourism industry. It provides diverse accommodation options, delivers excellent customer service, contributes to destination promotion, stimulates the local economy, and collaborates with travel operators. By continuously improving the travel experience, the hospitality industry plays a crucial role in attracting and retaining tourists, ultimately contributing to the growth and success of the travel and tourism sector.

Impact of the Travel and Tourism Industry on the Hospitality Industry

The travel and tourism industry has a profound impact on the hospitality industry, shaping its development, growth, and overall success. The two industries are closely interlinked, and the growth of one directly influences the other. Here are some key ways in which the travel and tourism industry impacts the hospitality industry:

1. Increased Demand: The travel and tourism industry generates an increased demand for hospitality services. As more people choose to travel for leisure, business, or other purposes, the need for accommodations, dining, and entertainment rises. This heightened demand leads to the expansion of the hospitality industry, as hotels, restaurants, and other establishments strive to meet the needs of the growing number of travelers.

2. Seasonal Variations: The travel and tourism industry often experiences seasonal variations, with peak travel periods and high demand during specific times of the year. These seasonal peaks significantly impact the hospitality industry, as hotels and other accommodation providers need to accommodate the influx of travelers during peak seasons. It often requires strategic planning and optimization of resources to handle these surges effectively.

3. Collaboration and Partnerships: The travel and tourism industry fosters collaboration and partnerships with the hospitality industry. Tour operators, travel agencies, and destination management companies collaborate with hotels, resorts, and restaurants to create comprehensive travel packages and experiences. By working together, these industries provide integrated services that enhance the overall travel experience for customers.

4. Market Expansion: The travel and tourism industry plays a crucial role in expanding the market for the hospitality industry. As more destinations become popular among travelers, the demand for hospitality services in those locations also grows. This expansion creates opportunities for new hotels, restaurants, and other hospitality establishments to enter the market and cater to the needs of travelers.

5. Innovation and Adaptation: The travel and tourism industry drives innovation and adaptation within the hospitality industry. As travelers’ preferences evolve and new trends emerge, the hospitality industry needs to stay up-to-date with these changes and cater to the evolving demands of travelers. This includes incorporating technology, offering new experiences, and providing personalized services to meet the expectations of a diverse customer base.

6. Economic Impact: The travel and tourism industry significantly contributes to the economic growth of the hospitality industry. A thriving travel and tourism sector brings in revenue, which directly benefits hotels, restaurants, and other hospitality establishments. This economic impact drives investment, job creation, and the development of infrastructure within the hospitality industry, ultimately leading to its growth and sustainability.

7. Exposure and Visibility: The travel and tourism industry provides exposure and increased visibility for the hospitality industry. Promotional activities, destination marketing, and travel recommendations create awareness of different accommodations and dining options available to travelers. This exposure can lead to increased bookings and engagement with the hospitality industry, benefiting businesses within the sector.

In summary, the travel and tourism industry has a significant impact on the hospitality industry. It creates increased demand, influences market expansion, drives collaboration and partnerships, stimulates innovation and adaptation, contributes to the economy, and enhances exposure and visibility for hospitality establishments. The close relationship between these industries ensures that the hospitality industry continues to evolve and meet the needs of travelers, contributing to the growth and success of both industries.

Collaboration and Cooperation between the Hospitality and Travel Industries

The hospitality and travel industries thrive on collaboration and cooperation, as they work together to create seamless and exceptional travel experiences for individuals and groups. The success of one industry is intricately tied to the success of the other. Here are some key aspects of collaboration and cooperation between the two industries:

1. Package Deals and Travel Packages: The hospitality and travel industries collaborate to create comprehensive travel packages that include accommodations, transportation, and various activities. Travel agencies and tour operators work closely with hotels, resorts, and other hospitality establishments to offer bundled services that cater to the preferences and needs of travelers. These package deals provide convenience and value for customers, while also benefiting the hospitality industry by promoting their services to a wider audience.

2. Cross-Promotion and Marketing: The hospitality and travel industries often engage in cross-promotion and joint marketing efforts. Hotels, resorts, and restaurants partner with travel agencies and tourism boards to showcase the unique experiences and attractions of a destination. By collaborating on marketing campaigns, offering special promotions, and sharing customer referrals, both industries can expand their reach and attract more travelers.

3. Ancillary Services and Partnerships: The hospitality industry provides ancillary services that enhance the overall travel experience. Hotels and resorts collaborate with transportation companies, tour operators, and activity providers to offer convenient and seamless services to their guests. These partnerships ensure that travelers have access to a range of services, such as airport transfers, guided tours, and adventure activities, resulting in a more comprehensive and enjoyable travel experience.

4. Information Exchange and Feedback: The hospitality and travel industries exchange valuable information and feedback to improve their services. Hotels and restaurants gather feedback from guests and share it with travel agencies and tour operators, enabling them to enhance their offerings and better meet customer expectations. Similarly, travel agencies provide information and insights about customer preferences and trends to hospitality establishments, helping them tailor their services and experiences accordingly.

5. Collaborative Events and Conferences: The hospitality and travel industries often come together to organize events and conferences that focus on industry trends, best practices, and networking opportunities. These events provide a platform for professionals from both industries to exchange ideas, share knowledge, and build partnerships. By fostering collaboration and cooperation in a collective environment, these events contribute to the growth and innovation of the hospitality and travel industries.

6. Training and Skill Development: Collaboration between the hospitality and travel industries extends to training and skill development programs. Hospitality industry professionals can benefit from travel industry training programs, which provide insights into travel trends, customer behavior, and industry standards. Similarly, travel professionals can learn about the unique aspects of the hospitality industry, such as customer service and guest experience, through collaboration with hotels and restaurants.

7. Crisis Management and Resilience: The hospitality and travel industries demonstrate cooperation and collaboration during times of crisis and challenges. This can include situations such as natural disasters, pandemics, or security concerns. Both industries work together to develop contingency plans, share resources, and support each other in managing and mitigating the impact of these crises. This collaboration ensures the resilience and recovery of the industries, ultimately benefiting travelers and preserving the integrity of the hospitality and travel sectors.

In summary, collaboration and cooperation between the hospitality and travel industries are vital for creating exceptional travel experiences and driving the growth and success of both sectors. Through package deals, cross-promotion, ancillary services, information exchange, collaborative events, training programs, and crisis management support, these industries work together to enhance the overall travel experience and contribute to the ongoing development of the global hospitality and travel sectors.

Challenges and Opportunities for the Hospitality Industry within the Travel and Tourism Sector

The hospitality industry operates within the dynamic and ever-evolving travel and tourism sector, facing both challenges and opportunities. Understanding these factors can help hospitality businesses adapt and thrive in the current landscape. Let’s explore some of the key challenges and opportunities for the hospitality industry:

Challenges:

1. Rising Competition: The hospitality industry faces intense competition, with new hotels, resorts, and alternative lodging options constantly entering the market. Keeping up with evolving customer preferences, maintaining high service standards, and differentiating from competitors are ongoing challenges for hospitality businesses.

2. Changing Consumer Behavior: Consumer behaviors and preferences are continually changing. From the rise of online booking platforms to the demand for personalized experiences, hospitality businesses must adapt to meet the evolving needs and expectations of travelers. Keeping up with emerging technology trends and catering to the preferences of tech-savvy customers can be a challenge.

3. Workforce Management: Finding and retaining skilled and dedicated employees is an ongoing challenge for the hospitality industry. High turnover rates, seasonal staffing needs, and the demand for specialized skills in areas such as hospitality management and customer service require effective workforce planning and training programs.

4. Sustainability and Environmental Responsibility: The hospitality industry faces the challenge of addressing sustainability concerns and adopting environmentally responsible practices. There is an increasing expectation for businesses to reduce their carbon footprint, promote sustainable tourism practices, and implement eco-friendly initiatives. Balancing sustainability with profitability can be a complex challenge for hospitality businesses.

Opportunities:

1. Technological Advancements: Technology presents numerous opportunities for the hospitality industry. From online booking platforms and mobile apps to automated systems and personalized guest experiences, leveraging technology can enhance operational efficiency, improve customer service, and increase revenue streams for hospitality businesses.

2. Personalization and Customization: The demand for personalized experiences provides an opportunity for the hospitality industry to create tailored offerings. By understanding customer preferences and utilizing data analytics, businesses can provide personalized recommendations, targeted marketing campaigns, and customized services to enhance the overall guest experience.

3. Emerging Markets and Niche Segments: The growth of emerging markets and the rise of niche segments within the travel and tourism industry present opportunities for the hospitality sector. This includes catering to specific traveler demographics, such as millennials or eco-conscious tourists, and capitalizing on emerging travel trends and destinations that appeal to unique market segments.

4. Collaborative Partnerships: Collaborating with other sectors within the travel and tourism industry, such as tour operators, destination management companies, and event organizers, can create new opportunities for hospitality businesses. By offering integrated services, participating in promotional initiatives, and developing joint marketing campaigns, businesses can expand their customer base and increase their visibility.

5. Enhancing the Guest Experience: The hospitality industry can differentiate itself and create a competitive edge by focusing on enhancing the guest experience. This can be achieved through innovative amenities, personalized services, and creating unique and memorable moments that go beyond traditional hospitality offerings.

6. Sustainable Practices: Embracing sustainability can be an opportunity for the hospitality sector. By adopting environmentally friendly practices, reducing waste, and promoting responsible tourism, hospitality businesses can attract eco-conscious travelers who prioritize sustainability when making travel decisions.

In summary, the hospitality industry faces challenges such as rising competition, changing consumer behavior, workforce management, and sustainability concerns. However, there are opportunities in technological advancements, personalization, emerging markets, collaborative partnerships, guest experience enhancement, and sustainable practices. By recognizing these challenges and seizing these opportunities, hospitality businesses can navigate the evolving travel and tourism landscape and position themselves for success.

The hospitality industry and the travel and tourism industry are intricately interconnected, with each industry relying on the other to create exceptional travel experiences for individuals and groups. The hospitality industry provides accommodations, food and beverage services, and entertainment, while the travel and tourism industry facilitates travel and leisure activities. Together, they contribute to the growth of the global economy and promote cultural exchange.

In this article, we have explored the definition and overview of both industries, the interconnectivity between them, and the impact they have on each other. We have seen how the hospitality industry influences the travel and tourism industry through its diverse accommodation options, high service standards, destination promotion, and economic contributions. Similarly, the travel and tourism industry impacts the hospitality industry through increased demand, collaborations, market expansion, and exposure.

We have also discussed the importance of collaboration and cooperation between these industries. The hospitality and travel industries collaborate on package deals, cross-promotion, information exchange, and collaborative events, ensuring a seamless and comprehensive travel experience for customers. By working together, they strengthen their offerings and contribute to the growth and success of both sectors.

Furthermore, we have highlighted the challenges faced by the hospitality industry, such as rising competition, changing consumer behavior, workforce management, and sustainability concerns. However, we have also identified a range of opportunities including technological advancements, personalization, emerging markets, collaborative partnerships, guest experience enhancement, and sustainable practices.

In conclusion, the hospitality industry and the travel and tourism industry play crucial roles in shaping the global travel landscape. Through collaboration, innovation, and adaptation, these industries can continue to provide exceptional travel experiences while addressing challenges and capitalizing on opportunities. By creating seamless and memorable journeys, the hospitality industry and the travel and tourism industry contribute to the enrichment of people’s lives and the economic development of destinations worldwide.

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What Are the 8 Sectors of Tourism?

By Anna Duncan

Tourism is one of the largest and fastest-growing industries in the world. It plays a significant role in economic development and job creation in many countries.

The tourism industry consists of several sectors, each with its own unique characteristics and offerings. In this article, we will discuss the eight sectors of tourism.

1. Accommodation

The accommodation sector is one of the most critical sectors of tourism. It includes all types of lodging facilities such as hotels, motels, resorts, lodges, guesthouses, and bed & breakfast establishments. These facilities provide visitors with a place to stay while they are away from home.

2. Food and Beverage

The food and beverage sector is another essential component of the tourism industry. It includes restaurants, cafes, bars, nightclubs, and other establishments that provide food and drinks to tourists.

3. Transportation

The transportation sector is responsible for moving tourists from one place to another. It includes airlines, trains, buses, taxis, rental cars, and other modes of transportation that visitors use to get around.

4. Travel Trade

The travel trade sector includes travel agencies that help tourists plan their trips by providing them with information on destinations, accommodations, transportation options, and tour packages.

5. Adventure Tourism

The adventure tourism sector offers activities such as hiking, camping, skiing/snowboarding on mountains or water sports including surfing or scuba diving to thrill-seekers who are looking for an adrenaline rush while on vacation.

6. Events and Conferences

The events and conferences sector provides facilities for large gatherings such as meetings or conventions that bring together people from different places to exchange ideas.

7. Attractions

The attractions sector includes theme parks like Disney World, museums, historical sites, zoos, and other places that tourists visit for entertainment and education.

8. Tourism Services

The tourism services sector includes companies that offer visitor-related services such as tour guides, translators, photographers, and other support services to enhance the visitor’s experience.

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Talk about ‘hidden gems’: One of the least-visited countries wants you to check it out

As my boat slowly approached the 7-acre islet of Bokanbotin – a 15-minute ride from Majuro, capital of the Marshall Islands – it looked as if I was sailing into a desktop wallpaper. 

A small white sandy beach wraps around an Edenic jungle. Under the sun, the turquoise water around the tiny island was as clear as glass – you could easily see the baby reef sharks swim below. No one else was on the private island, a secluded oasis. 

The Pacific has no shortage of unspoiled islands like Bokanbotin to enjoy. Think Fiji or Tahiti, which are renowned as top tourist destinations for being akin to paradise. That’s not the case for fellow island nation the Republic of the Marshall Islands (RMI). As one of the least-visited countries in the world, the RMI gets only about 6,000 visitors a year . In comparison, just in June, Fiji received more than 90,000 travelers . 

Within the last couple of years, the Marshall Islands started to explore tourism as an economic driver and as a way to promote environmental and cultural preservation. In 2018, the government established the Office of Commerce, Investment and Tourism to lead the charge with a heavy focus on sustainable tourism . 

A hidden gem in the Pacific Ocean, the country offers stunning natural beauty, warm hospitality and a rich culture to experience. RMI offers quintessential island living, with a well-known fishing culture plus pristine diving and surfing – if you know where to go. 

Learn more: Best travel insurance

“I think that's all we can offer the world, our culture and trying to maintain that culture, our customs, our language, that's very important,” said Carlos Domnick, CEO of the Office of Commerce, Investment and Tourism. 

More: Fodor's Travel put Maui on its 'No List' of places tourists may want to avoid in 2023. Here's why.

Why hasn’t the Marshall Islands explored tourism before? 

Most visitors to the RMI are there for business or humanitarian reasons – only about 16% are there for leisure, according to the Pacific Private Sector Development Initiative. 

Unlike Hawaii, where tourism represents a quarter of the economy , in the RMI, tourism represents just 10% of the country’s total gross domestic product . With a population of about 41,000 , only about 468 Marshallese were employed in the tourism industry in 2018, according to Domnick.

For the young country with a dark past and an uncertain future, tourism hasn’t been on residents’  – or investors’ – minds. “It’s a very new concept for us,” Domnick said.

The country initially wanted to explore tourism in the late 1990s, but it wasn’t able to get the idea off the ground, he said. As the RMI notices how tourism can transform countries, a renewed effort is taking place to bring more outreach to communities and outer atolls so “they understand the value of tourism and can also join in this effort to bring more visitors to our country.”

Is tourism to the Marshall Islands sustainable?

As climate change causes rising sea levels, scientists estimate the low-lying chain of atolls could become uninhabitable as soon as the 2030s . Over the past decade, coastal flooding has worsened, flooding roads and threatening buildings, according to Reginald White, director of the RMI’s National Weather Service Office.

“It’s hard to promote tourism … not only to try to bring tourists but to bring tourism investments as well. It’s hard to bring those in when you’re telling the world you’re sinking,” Domnick said. “So we’ve got a tough job, and we’re just trying to strike that balance moving forward.” 

The past also haunts potential tourism. In the 1940s, the U.S. military used the Bikini and Enewetak atolls as nuclear testing sites , which led to displacement of residents and culture loss and rendered the islands uninhabitable. Residents around the RMI experienced a slew of health problems, including birth defects and cancer, and no one has been able to return to those atolls.  

What’s it like traveling to the Marshall Islands? 

It’s difficult and expensive for travelers to even get to the RMI, which is made up of 1,225 islands spanning more than 822,799 square miles . 

Currently, there’s only one RMI-bound flight in the U.S.: the United Airlines “island hopper,” which departs from Honolulu and stops in Majuro and then Guam. The flight is scheduled only once a day, four days out of the week. A one-way ticket will typically cost over $1,000.

To improve accessibility, the RMI is trying to increase the number of flights to Majuro. Domnick is on the country’s aviation’s task force and has been in talks with airlines like Hawaiian Airlines and Fiji Airways to add more routes.

Once people get to Majuro, accommodations are in short supply – there are only three hotels. It’s a balancing act of marketing tourism and then having enough capacity to hold the tourists, Domnick said.  

If you want to dive the RMI’s unspoiled coral reefs or surf its waves, you’ll need to find a way to get from Majuro to the outer atolls. Since the islands are so spread out, it can take days via boat or a short flight on the notoriously unreliable domestic airline Air Marshall Islands.

A 20-hour sail or 40-minute flight (that’ll cost you about $320 round trip ) from Majuro is Beran Island’s Daly’s Beran Island Surf Lodge, an all-inclusive sustainable luxury surf resort created by Australian boat captain and surfer Martin Daly. Experiencing those pristine waves won’t come cheap. The resort requires you and up to 15 of your closest friends to book the entire place for at least a week for a price tag of $50,000. 

Unlike Beran Island, many of the outer atolls are too undeveloped to support tourism. Energy grids are considered unreliable and food resources are lacking. Just last month, the entire country finally got access to clean water with the help of outdoor company Sawyer’s water filters and the women-led nonprofit Kora in Okrane . 

What does sustainable tourism look like in the RMI? 

The island of Bokanbotin was passed down through the Tibon family. Sherwood Tibon and his wife, Emma Kabua-Tibon, who own a marine supply shop in Majuro, began to outfit their private land for personal use.

In June 2022, they opened Bokanbotin up to the public as an “island getaway” for picnics and camping. Travelers can reserve the solar-powered island on Airbnb for $250 a night for four guests as of July 31. For a more glamping experience, guests can stay in a small loft or, soon, an almost finished geodesic dome with an oceanfront patio. 

Campers are told to bring their own food, but the Tibons provide tents, utensils, pots, rice cookers and an outdoor screen for movies. There’s Wi-Fi, too. The family will take all trash back to Majuro for disposal. 

So far, most of the visitors to Bokanbotin are Marshall Islands expats from Australia or the U.S. The family hopes to market to more international travelers. “It’s different from other sites in Majuro,” Tibon said. “We think it’s unique, and we try to give it the wow factor so you say, ‘This is where I want to spend my day.’” 

As for the threat of climate change, Tibon said he’s not too worried about his island because the trees that line the shoreline “act as our seawalls,” blocking damage from rising tides. 

Eco-tourism boutique startups like Bokanbotin are exactly what the Office of Commerce, Investment and Tourism wants to support. 

Because not every family has the capital to start a business, the office is “seeing how we can provide an enabling environment for locals to be able to invest in tourism,” Domnick said. In 2021, the agency launched a program called Ao Kapijuknen (My Homeland) in partnership with the International Organization for Migration to train and fund women interested in starting up their own tourism business. 

Another tourism opportunity is coming next year. For the first time, the Marshall Islands will host the 10th Micronesian Games , showcasing sports and cultural practices like coconut tree husking to beach volleyball. In Majuro, a track field is being built for the 2023 games, but construction has been delayed , pushing the event to 2024. 

Domnick said the country is encouraging Majuro-based families to open up an empty room or guest house on Airbnb for the event. 

I spent the afternoon at Bokanrotin eating lunch out on the pier before masking up and snorkeling around the protected marine area, catching glimpses of puffer fish and giant clams. Leaving the island at sunset, it’s easy to understand why the Tibon family would want to share their island home with others. 

Kathleen Wong is a travel reporter for USA TODAY based in Hawaii. You can reach her at [email protected] .

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UK body to upskill more Guyanese in tourism & hospitality sector

The Confederation of Tourism and Hospitality (CTH), a United Kingdom (UK) body, has been working alongside ActionInvest Caribbean Inc. to get more workers professionally trained for the growing tourism and hospitality sector in Guyana.

And this week, the two bodies will scope out the needs in the sector to determine what additional programmes can be offered to help upskill locals.

“There’s lots to be done in Guyana, there are lots of opportunities.

“We know there are challenges at the moment. There is a recognised shortage of local, skilled and qualified staff and there are staff retention issues,” CTH’s DIrector of Marketing and Business Development, Steve Beckworth said at an event at the Marriott Hotel in Kingston, Georgetown on Monday.

The CTH is a UK specialist awarding body for qualifications in the tourism and hospitality sector. The qualifications are offered to teaching centres globally; in Guyana, ActionINVEST is the local teaching centre.

These qualifications are internationally-recognised.

Already, ActionINVEST has been training about 100 students locally in hospitality/ tourism management. The training is also done through the government’s Guyana Online Academy of Learning (GOAL) scholarship programme.

ActionINVEST Executive Chairman Vishnu Doerga told the News Room that a majority of the students are people already working in the tourism sector. Their employers, he said, opted to have them trained since many workers are without qualifications.

“… we also have many people who applied on their own who are already in the tourism industry but also youngsters leaving (high school) because the entry requirement is that you have to be 16 years old,” Doerga said.

But with tourism expanding rapidly in Guyana, Doerga said more programmes could be offered. A series of engagements will be undertaken this week to glean what practical skills are in demand. Once the demand has been identified, Level II courses for skills training in areas like housekeeping, bartending and cooking can be offered.

“… based on the meetings that we will be having this week, we will understand how to prioritise these Level II courses and bring them to the market,” he said.

Meanwhile, on Monday, local companies were recognised as CTH ‘Gold Employer’ partners in Guyana. Those companies are the Grand Coastal Hotel, the Marriott Hotel, the Ramada Hotel and Evergreen Adventures.

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France tries to shed its rude reputation ahead of the Olympics

Is the unfriendly Parisian a myth? A local goes undercover as a tourist to find out.

Paris is in the home stretch of preparing for the Olympics. A new 8,000-capacity arena has been opened in the north of Paris, the Olympic Village was inaugurated by Emmanuel Macron in early March, and authorities are still desperately trying to make sure the Seine is swimmable by the summer. The country is slowly but surely getting ready for the more than 15 million visitors that will descend on the capital and its suburbs between July and August. But there’s still something to consider — something a bit less tangible.

Are Parisians ready to welcome these visitors? Like really welcome?

France gets a bad rap when it comes to friendliness. There’s, of course, the long-standing cliché of the snooty French waiter or the surly Parisian, and a viral TikTok earlier this year of an American woman tearfully telling the camera that traveling in France was “isolating” and that French people were unwelcoming got thousands of comments — many from people agreeing with her.

“This kind of bad PR doesn’t worry me because it’s anecdotal,” says Corinne Ménégaux, the head of the Paris tourism office. “I think maybe 15 or 20 years ago the French were less welcoming, but nowadays we’ve got past that cliché. You inevitably have a small percentage of people who aren’t nice, and there’s not much you can do about it. It’s a reality of big cities, just like in London or New York.”

That hasn’t stopped France trying to clean up its rude image before foreigners come to town. Last year, the regional chamber of commerce updated a decade-old hospitality campaign called “Do You Speak Touriste? ” in the run-up to the Rugby World Cup held in Paris. The official guide touched on cultural differences, gently reminding the French that “The cultural tendency in France is to openly show one’s emotions, through one’s gestures or tone of voice. […] In other countries, disagreement is expressed a lot less openly.”

“There’s still the cafe waiter who doesn’t speak to you and sullenly serves you a Coca-Cola for 15 euros. I’m not saying that doesn’t exist anymore. But we have seen a real improvement,” said Frédéric Hocquard, the city councilor responsible for tourism and nightlife in Paris. He says that the covid-19 pandemic was the great turning point.

“There was this period when we had no tourists at all. And the tourist industry realized it had to make a bit of effort.”

A friendliness pledge

Part of Paris’ effort to revamp its reputation is a “hospitality charter,” which has been signed by more than 1,600 businesses in the tourism sector, from hotels to restaurants to tour guides. The agreement is based around three main principles: promote sustainable and environmentally friendly measures; make visitors’ experiences more fluid; and support local businesses. Businesses that have signed up will be able to display a sticker or sign on their establishment so that tourists know that they’re a trusted place. The city is also training workers in newspaper kiosks, bakeries and tobacco shops to be able to answer tourists’ questions.

Both Ménégaux and Hocquard agree on one point: Visitors to Paris also have to do their part. . In an ideal world, Ménégaux would like tourists to sign a “good tourist etiquette” charter of their own. “When people come to Paris, we want them to commit to respecting certain things: to respect their neighbors’ peace and quiet, to use a reusable water bottle and not buy plastic ones and not to buy products made in China when you can buy local.”

Differences in etiquette are among the first things some foreigners notice when they move to or visit France. American expats and social media content creators Ember Langley and Gabrielle Pedriani devoted a video to the thorny issue of French politesse in their lighthearted TikTok series, “The ABCs of Paris.” In the video , Langley warns, “What’s considered polite in the U.S. might not be considered polite in Paris.” The two go on to give tips such as “Smile less”, “Get into a debate over dinner” and “Arrive fashionably late.”

“I see Americans in the Metro and it’s like — read the room. Everyone else is being quiet!” Langley said in an interview. “When you’re a traveler, and you’re coming here on vacation, it’s easy to forget that 2 million people are living their lives here. You need to be respectful of the local culture and approach your interactions humbly.” But Langley says it’s a misconception that the French are rude; it’s just a matter of cultural differences. “The biggest thing here is that the customer is not always right; in the U.S., the customer is king.”

Going undercover as an English-speaking tourist

I decided to put Parisians’ friendliness to the test myself. As a Brit who has lived in Paris for a decade, speaks French and has even obtained French nationality (with immense gratitude), I put on my best British accent and went to see how I was treated around the French capital.

The experiment began at ground zero: in front of Notre Dame cathedral, which is still blocked off and undergoing renovation work after an enormous fire engulfed the roof in 2019. With a friend, I headed into the archaeological museum in the crypt. “Hello! Parlez-vous anglais?” I asked the woman behind the ticket desk. I was greeted with a broad smile and patient description — in English — of the museum and ticket prices. She wasn’t even bothered by a patently stupid question about whether we could visit the cathedral, gently explaining that the site wouldn’t be open to the public for months.

We thanked her and headed back up into the sunlight.

Next stop: a bouquiniste. These Seine-side booksellers have to tackle tourist questions day in, day out. The man running his stall opposite the cathedral cheerfully took the time to find books in English for us, before recommending that we try Shakespeare and Company just across the road, one of Paris’s most famous English-language bookstores. It was the same at the tourist trinket shop, where we asked for directions to the Eiffel Tower or down in the Metro station, where the woman behind the counter told us that her English wasn’t very good and yet valiantly answered all of our questions about transport passes with broken but determined English.

By this point, I had even ditched my poorly-pronounced French icebreaker, just bouncing up to them and speaking directly in English. And yet everywhere we went, we were greeted with smiles and a genuine desire to help. I’ll admit that I was surprised — it’s been years since I was a tourist in the city, but I certainly remember eye-rolling, terseness and a certain unwillingness to help.

It was time for the ultimate test: asking for oat milk in a Parisian cafe. We chose a touristy spot on the Place Saint-Michel, where the servers were every inch the stereotype, in white shirts and black bow ties. Our server swept up to us haughtily but didn’t blink when we responded in English, even though he initially couldn’t understand my question. “Hot milk?” he kept repeating. When he finally understood, he laughed, waving his hands dismissively. “ Non, non , it is not possible, soy milk, vegan milk, we do not have, only la vache .” To make his point, he added with a flourish, “Moooo!”

My request had managed to elicit the famous “ c’est pas possible ” — well-known to anyone who has struggled with French bureaucracy and customer service — but it was said with such good humor (and a complementary animal sound), so how could I be offended?

The more than a dozen tourists I spoke to had also had largely positive experiences. Samantha Capaldi, visiting from Arizona with two friends, told me, “We love it here,” before admitting with a wry smile, “We’re trying to blend in but we’re so loud, everyone notices us.” In the four days they’d spent in Paris, they’d observed the same cultural differences Langley mentions in her videos — such as not getting tap water automatically with your meal at a restaurant, or being given a funny look when ordering an appetizer alongside an entree. “They kind of laugh at us, but not in a mean way,” she continued. “Trying to speak French helps a lot.”

Carla, from Sheffield in the United Kingdom, was in Paris with her boyfriend Brian to celebrate the anniversary of their first date. She’s visited Paris several times and has noticed a marked difference in the way she’s been treated compared to previous trips. “I’m a bit of a weightier person and I’ve been deliberately ignored in restaurants before — other people being given menus before me or served before me. But I rarely get that now. Everyone seems really nice.”

It seems that the city’s efforts in recent years are paying off and Parisians are — dare I say it? — learning that a little hospitality goes a long way. The only thing left is being able to get oat milk in cafes — but maybe it’s up to Americans to let that go and lean into France’s love of dairy. Mooo!

Catherine Bennett is a writer based in Paris.

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This Saudi Airline Hopes to Triple in Size: The CEO’s Plan For Getting There

Gordon Smith , Skift

May 13th, 2024 at 5:56 AM EDT

Flyadeal's new CEO Steven Greenway says the scale of airline's expansion attracted him to the role. His challenge now is turning targets into tangible results.

Gordon Smith

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Even by Saudi standards, the goals are ambitious: By 2030,  the country wants 330 million passengers to pass through its airports annually, up from around 112 million last year.

To get there, the Saudi airline sector is growing faster than almost anywhere on the planet.

New carrier Riyadh Air has grabbed  most of the attention . However, there’s another shift underway: The rise of the Saudi low-cost airline. 

Flyadeal is the budget subsidiary of Saudia, the country’s national carrier . Since launching in 2017, it’s grown to become one of the nation’s biggest low-cost operators. 

By the end of the decade, flyadeal is set to triple in size, from 32 planes today, to almost 100. Dozens of new destinations are set to be added to its route map, with international links into Europe and the Indian subcontinent. 

Trying to take this vision from spreadsheet to the skies is Steven Greenway, who was appointed flyadeal CEO in January. He was a founding member and CCO of Scoot, Singapore Airlines’ budget subsidiary , and also served as president of Swoop, a Canadian ultra-low-cost carrier that later merged with WestJet.

While the opportunities for Greenway are vast, so are the challenges. Adding huge capacity into a developing market in a short space of time can be difficult.

In the latest of our  Leaders of Travel: Skift C-Suite Series , we sit down with Greenway to find out how ambitions can translate to reality.

Which Planes Will Fuel the Expansion?

Skift: Before you joined flyadeal, there was a publicly shared goal of having around 100 planes in the fleet by the end of the decade. Is that still on the cards? 

Steven Greenway: Yes. The ambitious growth plan at flyadeal was the reason I was attracted to the airline. You’re going to see us leapfrog from 32 aircraft today to just shy of 100 in four or five years – more than tripling in size.

Our background is domestic flying and this still makes up around 80% of our capacity. Moving forward, the dynamics will change slightly because we’ll continue to grow domestically, but also branch out internationally. The airline is morphing into more of an equal blend of domestic and international flying.

We know that the additional 65 or so aircraft will be Airbus narrowbodies. Do you have any wiggle room regarding the size and variant? 

The order book is a mix of Airbus A320s and A321s. I can’t talk about what the actual mix is, but our A321s start arriving in 2026. It’s that well-worn strategy seen in other parts of the world wherever you have slot constraints where you deploy the A321 to give you extra capacity. But it’s also about enabling us to grow with what we have.

There are only so many times you can fly between Riyadh and Jeddah. We already have 22 flights a day. You can add another one every 15 minutes, you can use that slot for something else like an international service, or you can upgauge the size of the aircraft.

The mission set between the A320 and A321 is exactly the same, it’s just that we’re getting more seats. It offers flexibility in a part of the world where there’s a lot of seasonality. There are peaks and troughs in terms of demand. Of course, that’s true for a lot of markets, but particularly here in the Middle East.

Taking a look inside the plane, would you consider introducing a hybrid premium product like we’ve seen at other low-cost carriers?

I’ve worked at airlines that have done both. However, in my mind the premium cabin really only comes into play after four or five hours. We’re comfortable with the product we have. We’re constantly upgrading the seats, installing huge overhead bins, and offering in-seat power. When you consider all of these things combined, there’s enough there that people are reasonably comfortable for the mission sets that we have for the aircraft.

An Increasingly Familiar Business Model

How responsive is the Saudi market, and consumers more generally in the region, to the low-cost carrier (LCC) concept? 

Saudi Arabia is as commercialized as any country in Europe. They get what the trade-off is. You have airlines like Wizz coming into the country, Air Arabia, you have us. We all have similarly common practices with unbundled fares, so it’s nothing unfamiliar to this market. 

You have Saudia at the top offering full service, you have flynas in the middle doing a hybrid, and you have us doing a pure LCC play. People have choices in the market, which is great. They get what the proposition is, it’s not something that you have to educate them on per se. 

Are there any areas where further progress could be made?

I think the things that we need to improve are more around customer service and expectations. In some countries and regions, online check-in can be between 90-99%. It’s not here. Online check-in is not anywhere near as high as we would like, but it is progressing in the right way.

People also still carry a lot of baggage. For example, in Europe, people are able to survive with a backpack for the weekend because they want to save the money. That’s their choice. Here it’s a slightly different market, but it is adapting.

Flyadeal’s Growth Trajectory 

Flyadeal plans to operate to more than 100 destinations by 2030. What are the key markets and geographies to watch? 

The country is opening up for both domestic and inbound tourism. What you have is Saudis discovering Saudi Arabia. It’s not that they couldn’t travel around before, it’s that there simply wasn’t that mobility five or ten years ago.

I read the other day that Riyadh to Jeddah is probably going to be the busiest route in the world in the next couple of years – it’s come out of nowhere.

But there’s a lot more expansion to do within Saudi Arabia, especially when you look at the mega projects that are opening up. One good example is the Red Sea resorts. A new airport has opened there and it’s not even on our route map at the moment. It’s certainly something that we’ll be looking at over the next couple of years.

And what about your international ambitions? 

India is of incredible interest to us. The UAE and the Middle East in general are still underserved in terms of points into and out of Saudi Arabia. We also have to consider the secondary points. Everyone speaks about Riyadh and Jeddah, but what Dammam, what about Madinah? For example, we might already be operating to Dubai from Riyadh but we’re not from Madinah. So we’ll start joining the dots on that type of route as well. 

And then there’s southern and southeast Europe. We really haven’t touched on that except for some summer seasonal flying, which has been successful. But getting in there and branching into that market is a huge opportunity for us as well.

We’ve seen other low-cost airlines in the region and further afield open foreign subsidiaries. Is this of interest to you?

Never say never, but it’s really not on our radar. The reason is we believe in so much potential in Saudi Arabia that we don’t have to go fishing. Typically it happens when you’re a city-state, you’ve got no domestic market, you’re a pure international player – therefore you’re looking for other markets to open up. We’re not in that position.

We have a 10-year fleet plan, we know where the aircraft are going to go – obviously subject to change – and all of those are going into the Saudi market, either domestically or internationally.

The Future of Flying

Before joining flyadeal you were involved in the AI space. How much scope is there for this technology in the airline industry?

I think there’s huge potential. The question is does it replace human thinking and decision making? Or does it supplement and support and provide insight? I think there’s a lot of hype out there and that question still hasn’t been answered. I see AI as a companion to decision-making to support a whole range of factors.

Everything from call centers to network planning to operations control. We’re putting in scenarios, and we’re getting back a range of options that we can make decisions on as a business – that’s where we are experimenting as an airline. 

And finally, what are your key trends to watch for the coming year?

The continued growth, or boom, in Saudi Arabia. Watch how it manifests itself. You’ll also continue to see the Kingdom shape what its ambitions are. Keep an eye out for that because some of the things that are coming online, or to be announced, are absolutely phenomenal. I can’t speak about them, but I certainly know what’s coming and I think this is going to be a very interesting market.

This interview was edited for clarity and length.

Read more from our new  Leaders of Travel: Skift C-Suite Series   here .

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Tags: airlines , flyadeal , low-cost carriers , middle east , saudi , saudi arabia , saudia airlines