A profile of the hospitality industry

EBOOKS FOR BUSINESS STUDENTS Curriculum-oriented, borndigital books for advanced business students, written by academic thought leaders who translate realworld business experience into course readings and reference materials for students expecting to tackle management and leadership challenges during their professional careers • Unlimited simultaneous usage • Unrestricted downloading and printing • Perpetual access for a one-time fee • No platform or maintenance fees • Free MARC records • No license to execute The Digital Libraries are a comprehensive, cost-effective way to deliver practical treatments of important business issues to every student and faculty member For further information, a free trial, or to order, contact:  sales@businessexpertpress.com www.businessexpertpress.com/librarians Betsy Bender Stringam • Charles G Partlow The hospitality industry is one of the world’s largest and oldest industries A Profile of the Hospitality Industry provides an inside look to the strategies of this industry This book reviews the developments, challenges, and opportunities for the hotel, restaurant, foodservice and gaming industries The hospitality industry is unique in many aspects which makes this book a must read for hospitality students, business students and those interested in management strategy Dr Betsy Bender Stringam is a faculty member for the School of Hotel, Restaurant and Tourism Management at New Mexico State University Dr Stringam previously worked in the hotel, resort, and restaurant industries at both the corporate and property level Dr Stringam received her BS in hotel administration from Cornell University, her MS in hotel and restaurant management from Florida International University, and her doctorate from Northern Arizona University Dr Stringam conducts research primarily focused on the hotel and resort industry, and is also the collection editor of the Tourism and Hospitality Management Book collection for Business Expert Press Dr Charles G Partlow is a professor in the School of Hotel, Restaurant and Tourism Management at the University of South Carolina in Columbia He earned his PhD from Kansas State University, his MS in hotel and restaurant administration from the University of Southern Mississippi and a BS in food management and dietetics from Mississippi State University Dr Partlow has over 35 years of experience in hospitality management, consulting, and education His teaching and research expertise lie in the areas of strategic management and leadership Industry Profiles Collection Donald N Stengel, Editor A PROFILE OF THE HOSPITALITY INDUSTRY POLICIES BUILT BY LIBRARIANS A Profile of the Hospitality Industry STRINGAM • PARTLOW THE BUSINESS EXPERT PRESS DIGITAL LIBRARIES Industry Profiles Collection Donald N Stengel, Editor A Profile of the Hospitality Industry Betsy Bender Stringam Charles G Partlow A Profile of the Hospitality Industry A Profile of the Hospitality Industry Betsy Bender Stringam and Charles G Partlow A Profile of the Hospitality Industry Copyright © Business Expert Press, LLC, 2016 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means— electronic, mechanical, photocopy, recording, or any other except for brief quotations, not to exceed 250 words, without the prior permission of the publisher First published in 2016 by Business Expert Press, LLC 222 East 46th Street, New York, NY 10017 www.businessexpertpress.com ISBN-13: 978-1-60649-918-4 (paperback) ISBN-13: 978-1-60649-919-1 (e-book) Business Expert Press Industry Profiles Collection Collection ISSN: 2331-0065 (print) Collection ISSN: 2331-0073 (electronic) Cover and interior design by S4Carlisle Publishing Services Private Ltd., Chennai, India First edition: 2016 10 Printed in the United States of America Abstract The hospitality industry is generally referred to as businesses that provide accommodation and foodservice Traditionally an entrepreneurial business, it now includes organizations ranging from small independent cafes to large multinational corporations Businesses in the hospitality industry have many organizational structures to include whole ownership, franchising, consortia, and management contracts as key configurations Affected by capital investment, travel and tourism trends, threats and opportunities, the hospitality industry has proved resilient The hospitality industry is unique in many aspects of organization and strategy In addition, the hospitality product is generally part service and part product, produced and consumed simultaneously, and includes the customer as part of the delivery process Inventory is perishable Human resources plays a significant role as the hospitality industry is labor intensive Because the hospitality industry is so diverse, governmental regulation and policies influence many aspects of the industry Of primary concern are policies that promote or restrict tourism and travel Guest and employee safety are highly regulated Hospitality businesses are subject to labor provisions, food safety laws and requirements for accommodations for customers with disabilities Global expansion is also highly regulated with requirements for partnership and governmental ownership in foreign development and investment The hospitality industry is ripe with opportunity and challenges Global expansion is increasingly a part of the modern hospitality industry The hospitality industry faces many challenges The ongoing threat of terrorism to travel remains a concern Cost and availability of capital for expansion can be an obstacle in some markets Technology has changed the distribution of the hospitality product Pricing transparency in lodging and accommodations threatens commoditization Social marketing, while presenting opportunities, has also destabilized the ratings and information process of hospitality products, putting control of information in the hands of the consumer Greening, or sustainability efforts, provides both opportunity and challenge as hospitality organizations embrace market, methods, and processes which renew and replenish resources vi KEYWORDS Keywords Hospitality, Hotel, Motel, Inn, Resort, Restaurant, Foodservice, Quick Service, Lodging, Catering, Gaming, Casino, Tourism Contents Chapter Chapter Chapter Chapter Chapter Chapter Chapter Introduction .1 How the Industry Operates Industry Organization and Competition 37 Uniqueness of the Hospitality Product 65 Competitive Strategies 73 Outside Market Forces 95 Challenges and Opportunities for the Industry .109 Resources for Further Study 131 References 133 Endnotes 147 Index 165 CHAPTER Introduction Travel is often considered everyone’s favorite pastime.1 Thus, it is no wonder that many consider the hospitality industry to be one of the world’s biggest industries It is estimated that in 11 jobs worldwide is a part of the hospitality industry.2 So pervasive is the hospitality industry that quick service restaurants and their related franchises are considered one of America’s largest and best exports.3 The hospitality industry is generally referred to as businesses that provide accommodation and foodservice The North American Industry Classification System coding system developed for the U.S Census Bureau classifies Accommodation and Foodservice together The hospitality industry is composed of several smaller industries: lodging, foodservice, and travel-related recreation Hotels, motels, resorts, inns, and bed and breakfasts make up most of the lodging or accommodation industry The foodservice industry is diverse and is often classified into Quick Service, Casual, Full Service, On-site Foodservice (contract), Private Clubs, Bars and Beverage Management, Catering, and Event Management.4 Gaming or casinos are often considered a component of the hospitality industry where they intersect with hotels and restaurants The hospitality industry is very diverse: from small mom and pop diners to large multi-thousand hotel room complexes The industry is located throughout the world in many facets, structures, and designs But, the hospitality industry is more than just a place to stay or a meal to eat It often serves as the hub of a community.5 Restaurants and hotels also serve as a center for commodities, capital, and information.6 People gather to hotels and restaurants in pursuit of commerce, conversation, and culture Conrad Hilton believed hotels and restaurants become the “focal point for the exchange of knowledge between millions of people … who have come there because they want to know each other better, trade with each other and live with each other in peace.”7 As economies and communities 158 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 ENDNOTES Lattin (2009) Summers (2007) CHD (2013) Maze (2014) Summers (2007) Gee (2008) Yum! (n.d.-b) Schwartz (2013) Gee (2008) Cole (2014) Sturman et al (2011) Odedra (2014) Rogerson (2013) Gu et al (2012); Whitla et al (2006) Whitla et al (2006) Whitla et al (2006) Gu et al (2012) Honey (2008) Gu et al (2012) Gu et al (2012) Timothy & Teye (2009) Summers (2007) Summers (2007) Baird (2009) Sandoval-Strausz (2007) Gee (2008) Slattery (2012) Slattery (2012) Gee (2008); Summers (2007) Potter (1996), p 38 Brotherton (2003); Gee (2008); Summers (2007); Turkel (2009); Vermillion et al (2009) Gaughan (2014) Potter (1996) Summers (2007) Gee (2008) Turkel (2009) Gee (2008) Summers (2007) Foucar-Szocki et al (2009) Jackson & Naipaul (2009) Turkel (2009) Baird (2009); Vermillion et al (2009) ENDNOTES 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 Chathoth & Chon (2009) Vermillion et al (2009) Jakle et al (1996); Summers (2007); Vermillion et al (2009) Potter (1996) Brotherton (2003) Turkel (2009) Jakle et al (1996) Potter (1996) Nusair & Parsa (2009), p 158 Turkel (2009) Miller (2009) Perman (2009) Pillsbury (1990) Bernstein (1981) Brotherton (2003) Potter (1996) Chathoth & Chon (2009) Brotherton (2003) Bender et al (2008) Barrows & Powers (2009); Turkel (2009) Foucar-Szocki et al (2009) Chapter 6 10 11 12 13 14 15 16 17 18 Slattery (2012) Go & Pine (1995) Go & Pine (1995) Timothy & Teye (2009) Vermillion et al (2009) Sturman et al (2011) Timothy & Teye (2009) Dev (2012) Go & Pine (1995) Brotherton (2003) Barron (2012); Perman (2009) Sturman et al (2011) Barron (2012) Barron (2012) Hertzfield (2014) Mudallal (2015) Gee (2008) Afaqs (2008); Chathoth & Chon (2009) 159 160 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 ENDNOTES Tsai et al (2009) Eisen (2014b) Whitla et al (2006) Brotherton (2003) Becker (2013), p 347 Becker (2013) Becker (2013), p 363 Cunill (2006) Gee (2008); Go & Pine (1995) Go & Pine (1995) Gee (2008); Timothy & Teye (2009) Lodging (2014) Becker (2013), pp 353–356 Fischer (2014) Gee (2008) Brotherton (2003) Brotherton (2003) Brotherton (2003) Timothy & Teye (2009) Gee (2008) Whitla et al (2006) Brotherton (2003) Gee (2008) Gee (2008) Morris et al (2007) Coulter (2009) Gee (2008) Barrows & Powers (2009) Timothy & Teye (2009) Timothy & Teye (2009) Morris et al (2007) Taylor & Weisberg (2013) United Nations (n.d.) Becker (2013), p 375 Gee (2008); Go & Pine (1995) Gee (2008) Singh & Schmidgall (2005) Milburn & Hall (2014) Becker (2013) O’Neill (2014) Lodging (2014) Jong (2014) Timothy & Teye (2009) ENDNOTES 62 63 64 65 66 161 Jong (2014) Sturman et al (2011) Sturman et al (2011) Becker (2013) Milburn & Hall (2014) Chapter 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Brotherton (2003) Go & Pine (1995) Barron (2012); Smith & Siguaw (2010) Brotherton (2003); Timothy & Teye (2009) Timothy & Teye (2009) Giebelhausen (2014) Barron (2012), p 97 Sturman et al (2011) Timothy & Teye (2009) Nusair & Parsa (2009), p 161 Sturman et al (2011) Barron (2012) Sturman et al (2011) Thorn (2014) Go & Pine (1995) Barron (2012) Timothy & Teye (2009) Summers (2007), p 125 Go & Pine (1995) Schwartz (2013) Gee (2008); Timothy & Teye (2009) Vermillion et al (2009) Becker (2013) Becker (2013) Gee (2008) Honey (2008) Smith & Siguaw (2010); Sturman et al (2011) Dev (2012) Compiled from Becker (2013); Dev (2012); Gee (2008); Honey (2008) Brotherton (2003) Barron (2012) Barron (2012) Brotherton (2003); Walker (2013) Brotherton (2003) 162 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 ENDNOTES Walker (2013) Barron (2012) Bureau of Labor Statistics (2015) Go & Pine (1995) Whitla et al (2006) Brotherton (2003) Brotherton (2003) Rogerson (2013); Timothy & Teye (2009) Smith & Siguaw (2010) Becker (2013) Timothy & Teye (2009) Gee (2008) Timothy & Teye (2009) Turkel (2009) Gee (2008) Aderibigbe (2014) Cetron et al (2010) Cetron et al (2010) Summers (2007) BBC (2009) Gee (2008) Gee (2008) Cetron et al (2010) Vermillion et al (2009) DiBlasio (2014) Becker (2013) Foucar-Szocki et al (2009) Gee (2008) Singh & Schmidgall (2005) Timothy & Teye (2009) Singh & Schmidgall (2005) Gee (2008) Singh & Schmidgall (2005) Hanson & Smith (2003) Singh & Schmidgall (2005) Gu et al (2012) Walker (2013) Turkel (2009) Slattery (2012) Vermillion et al (2009) Timothy & Teye (2009) Go & Pine (1995) Brotherton (2003) ENDNOTES 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 Cetron et al (2010) Leggett (2014); Valli (2014) Leggett (2014) Go & Pine (1995) Gee (2008) Slattery (2012), p 255 Becker (2013) Slattery (2012) p 255 Gee (2008) World Travel & Tourism Council (2015b) World Travel & Tourism Council (2014) Barrows & Powers (2009) Timothy & Teye (2009) Go & Pine (1995) Ford (2013); Slattery (2012) Go & Pine (1995); Honey (2008) UNWTO (2015) Honey (2008) Potter (1996); Turkel (2009) Baird (2009); Potter (1996) Gee (2008); Summers (2007) Baird (2009); Gee (2008) Becker (2013), p 53 Potter (1996); Summers (2007) Honey (2008) Honey (2008) Potter (1996) Go & Pine (1995) Rogerson (2013) Milburn & Hall (2014) Timothy & Teye (2009) Timothy & Teye (2009) Lattin (2009) Cunill (2006) Deliotte (2014); STR (2013); Sullivan (2013b) Higley (2015); Timothy & Teye (2009) Valli (2014) Becker (2013) Gu et al (2012); Lattin (2009) Becker (2013) Sullivan (2013b) Gu et al (2012) Barron (2012) 163 164 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 ENDNOTES Becker (2013) Becker (2013) Dev (2012); Honey (2008); Timothy & Teye (2009) Smith & Siguaw (2010) Lattin (2009) Smith & Siguaw (2010) Lattin (2009) Smith & Siguaw (2010) Lattin (2009) Odedra (2014) Dubai (2014) Lattin (2009) Lattin (2009) Rodriguez (2002) Shadare (2013) Eisen (2014a) Starwood Hotels and Resorts Worldwide (2013) Baker (2013) Becker (2013) Woodman & Abbate (2015) Gee (2008) Index AccorHotels, 21, 39 Acquisition of labor, 68–71 Africa hospitality industry, expansion of, 129 Aimbridge Hospitality, 29 Amazon, 98 Ambassador, American Automobile Association diamond rating system, 97 Americans with Disabilities Act (ADA), 105 Aramark, 16, 34 Asia hospitality industry, expansion of, 57 -58, 127 -128 Automatic Retailers of America (ARA) See Aramark Barriers to entry hotels, 80 -81 imitation, 81 -82 restaurants, 81 Bell, Glen, 13 Best Western, 21, 49 Bing, 98 Blitz, Gerard, 22 Bloomin’ Brands, 30 Bombings, as threat to hospitality industry, 118–119 Boulanger, 11 Brand(s/ing) collectors, 51 -55 strategies, 59 -64 Brinker International, 31 Brinker, Norman, 14 Bureau of Labor Statistics, 69 Burns, Matthew, 13 Caesar’s Entertainment, 35 Capital, cost and availability of, 122 Carlson Rezidor, 21, 91 Carrols Restaurant Group, Inc., 33 Casinos, 3–4, 16–20, 35–36 brand collection, 55 Casual dining, 14, 63 Chain affiliation, 38–39, 42 Challenges, for hospitality industry, 116–123 capital, cost and availability of, 122 commoditization, threatening of, 121 disease or illness, outbreak of, 120 in economy, 117 leisure time, decline of, 116 refurbishment, 122 -123 slow innovation, 117 terrorism, 118 -119 threats to industry, 117 -118 wars and political instability, 119–120 weather-related disasters, 120 -121 Choice Hotels International, 21–22, 78 Club Mediterannee, 22 Commoditization threatened by transparency of pricing, 121 Compass Group, PLC, 34 Competitive strategies, 73–94 barriers to entry, 80 -82 corporate strategies, 82 -87 diversification, 93 -94 economies of scale, 76 -80 loyalty programs, 73 -74 pricing strategies, 75 product development at every price point, 75 -76 revenue management, 74 strategic alliances, 87 -93 Consolidation of hospitality industry, 51–54 Consortium, 48–49 166 INDEX Consumers connectivity of, 112 health conscious, 109 -110 Convention on the Rights of Persons with Disabilities (CRPD), 105 Corporate strategies, 82–87 Cost See also Pricing of capital, 122 low switching, 87 -93 Cramer, Keith, 13 Customers changing, 109 with disabilities, accommodations for, 105 types of, 95 Darden Restaurants, 31 Denny’s, 31, 83 Dicos, 31 DineEquity, Inc., 31 Disney, Walt, Distribution channels hotels, 96 -97 restaurants, 97 user-generated content, 97 -98 Distribution networks, 111–112 Diversification, 76, 93–94 related, 93 -94 unrelated, 94 Domino’s, 31 Dual branding, 64 Dubrule, Paul, 21 Dunkin’ Donuts, 32, 83 Dusit International, 22 Economic leakage, 87 Economies of scale, 76–80 challenges to, 79 -80 management-based, 78 in marketing, 76 -77 in purchasing, 77 -78 standardized procedures, 77 technology, 78 -79 Economy, impact on hospitality industry, 117 Escarrer, Gabriel, 26 Ethnic restaurants, 15 Expansion in hospitality industry, 55–59 global, 82 -87 and recession cycles, 55 -59 Fast food See Quick service Fire safety rules, 104 Flower Inn, Flynn Restaurant Group, 33 Food distribution, vertical integration in, 92–93 Food security, 104–105 Four Seasons Hotels and Resorts, 22, 61 Franchising, 45–48 distinguished from management contracts, 50 Frequent guest programs See Loyalty programs Future of hospitality industry, 124–125, 130 Galaxy Entertainment Group, 36 Gambling, 3–4, 16–20 Gaming, 1, 16–20 See also Casinos Global Distribution System (GDS), 96–97 Global expansion, of hospitality industry economic leakage, 87 history of, 82 -84 international ownership structures, 85 international travellers, 86 -87 joint ventures, 85 -86 Governments, partnerships with, 88–89 Green concepts, for hospitality industry, 115 Gross Domestic Product (GDP), 68, 123 INDEX Guertin, Merile, 21 Guest/employee safety, 103–105 accommodations for disabled, 105 fire safety rules, 104 food security, 104 -105 workplace health and safety, 104 Harvey, Fred, 38, 50, 77, 92 Health conscious consumers, 109–110 Hersha Hospitality Management (HHM), 29, 90 Hilton, Conrad, 2, 23 Hilton Hotels, 2, 23, 89, 90, 91, 99 Ho, Stanly, 19 Homeinns Hotel Group, 23, 86 Hospitality industry barriers to entry, 80 -82 branding strategies, 59 -64 challenges for, 116 -123 competitive strategies of, 73 -94 consolidation of, 51 -55 consortium/referral groups of, 48–49 corporate strategies, 82 -87 development of product, 75 -76 economies of scale, 76 -80 expansion in, 55 -59 franchising, 45 -48 future growth, 124 -125, 130 green concepts for, 115 history of, -20 human resource management, 68–71 international travel/global expansion, 126 -129 introduction to, -5 loyalty programs in, 73 -74 management contracts, 49 -51 outside market forces, 95 -107 opportunities for, 123 -130 origins of, -4 policies that promote/restrict, 100 -103 pricing strategies of, 75 167 recession cycles, 55 -59 revenue management of, 74 strategic alliances in, 87 -93 structure of, 37 -44 sustainability of, 113 -114 top players in, 20 -36 Hospitality product, uniqueness of, 65–71 location, 67 non-guest buyer, 67 offering of experience, 66 part product, 65 part service, 65 perishability of inventory, 66 -67 simultaneous production and consumption, 66 Hotel management companies, 29 Hotel Okura, 23 Hotel ownership and development companies, 29–30 Hotels, 20–28 See also individual hotels barriers to entry, 80 -81 classification of, 39 -40 distribution channels, 96 -97 history of, -10 segmentation in, 60 -63 structure of, 39 -43 timeshare and vacation ownership, 43 Human resource management, 68–71 acquisition, 68 -70 development of labor, 70 -71 retention, 70 Hyatt Hotels Corporation, 23 IKEA, 32 Indian Gaming Regulatory Act, 18 Ingram, Edgar Waldo Billy, 12 InterContinental Hotels and Resorts, 2, 24, 27, 83, 89, 90, 91, 92 International chain restaurant companies, 35 International expansion, of hospitality industry, 126–129 168 INDEX International Finance Committee (IFC), 125 International travelers, 86–87 Interstate Hotels & Resorts, 29, 99 Inventory, perishability of, 66–67 JD Wetherspoon, 32 Jin Jiang International Hotel Management Company, 24, 86, 99 Johnson, Howard, 9, 45, 48, 92 Joint ventures, 85–86 Jumeirah Group, 24–25, 61 Karcher, Carl, 13 Kathy, Truett, 13 Kerzner, Sol, 27 King, Scott, 45 Kirby, Jesse, 12 Kroc, Ray, 13, 45, 77 Labor acquisition of, 68 -71 availability of, 69 development of, 68 -71 practices, 106 -107 regulations, 106 -107 retention of, 68 -71 unions, 107 Las Vegas Sands, 36 Leisure time, decline of, 116 Les Trois Rois, Location of hospitality industry, 67 Louvre Hotels Group, 25 Loyalty programs, 73–74 Lui, Che-woo, 19, 99 Managed foodservice, 15–16, 34 Management contracts, 49–51 advantages of, 50 brand affiliated companies, 50 distinguished from franchise, 50 independent management companies, 50 origin of, 50 Mandarin Oriental Hotel Group, 25, 61 Marketing, economies of scale in, 76–77 Marriott ExecuStay, 25 Marriott International, 25 Marriott, J.W., 9, 45 McDonald’s Company, 13, 32, 45, 46, 77, 84, 92 Meliá Hotels International, 26 MGM Resorts International, 36 Middle East hospitality industry, expansion of, 129 Millennium hospitality industry, expansion of, 58 -59 Mobil star rating system, 97 Non-guest buyer, 67 North American Industry Classification System, NPC International, Inc., 34 Oberoi Hotels, 26 Oberoi, M.S., 9, 26 Occupational Safety and Health Administration (OSHA), 104 Offering of experience, 66 Opportunities, 123–130 Origins of hospitality industry, 3–4 Outbreak of disease/illness, as threat to hospitality industry, 120 Outside market forces, 95–107 customers, types of, 95 distribution channels, 96 -98 partnerships, 99 regulation, 100 -107 substitutes for hospitality, 98 Pacific Rim hospitality industry, expansion of, 57 -58 Partnerships, 99 with governments, 88 -89 INDEX Part product, 65 Part service, 65 Pelisson, Gerard, 21 Political instability, as threat to hospitality industry, 119–120 Pricing See also Cost strategies, 75 transparency of, commoditization threatened by, 121 Pritzker, Jay, 23 Product development, at every price point, 75 -76 differentiation, 115 -116 Production/consumption, simultaneous, 66 Purchasing, economies of scale in, 77–78 Quick service, 12–14 Real estate investment trusts (REIT’s), 52, 57 Real estate product, divestiture of, 40–43 Referrals, 48–49 Reflagging, 62 Refurbishment, 122–123 Regulations, for hospitality industry, 100–107 alcohol consumption, 102 capital, availability of, 103 currency exchange rates, 102 -103 gaming, 102 guest/employee safety, 103 -105 labor practices, 106 -107 taxation, 107 transport to destination, 102 visas, 107 Restaurant Brands International (RBI), 32 Restaurants, 10–12, 30–33 See also individual restaurants barriers to entry, 80 -81 169 brand collection, 54 -55 classification of, 44 distribution channels, 97 franchisee companies, 33 -34 segmentation in, 63 -64 structure of, 44 Retention of labor, 68–71 Revenue management, 74 Richard & Maurie McDonald, 13 Ritz, Cesar, 38 Sanders, Harland, 13 Sarno, Jay, 17 Segmentation, 10, 60–64 Sharp, Isadore, 22, 61, 90 SJM Holdings, 36 “Slow Food” movement, 110 Slow innovation, of hospitality industry, 117 Snyder, Harry, 12 Sodexo, Inc., 34 Standardized procedures, economies of scale in, 77 Starbucks, 32 Starwood Hotels and Resorts, 26 Statler, Ellsworth, 8, 45, 51 Strategic alliances, in hospitality industry, 87–93 partnerships with governments, 88–89 travel agent industry and hotel, relationship between, 87 vertical integration, 89 -93 Structure of hospitality industry, 37–44 Substitutes for hospitality, 98 Subway, 13, 33, 46 Sukiya, 33 Summit Restaurant Group, 34 Sustainability, 113–115 Taj Hotels, Resorts and Palaces, 26–27, 61 Tata, Jamsetji Nusserwanji, 27 170 INDEX Taxation, 107 Tax Reform Act of 1986, 57 Technology, 110–113 challenges with, 113 connectivity of consumer, 112 distribution networks, 111 -112 economies of scale and, 78 -79 reach out to and connect with guests, 112 revolution of, 112 Terror in air, as threat to hospitality industry, 118–119 Thomas, Dave, 13 Threats to hospitality industry, 117–121 bombings, 118 -119 disease or illness, outbreak of, 120 political instability, 119 -120 terror in air, 118 -119 wars, 119 -120 weather, 120 -121 Timeshares, 43 Travel agent industry and hotel industry, relationship between, 87 TripAdvisor, 97 TSOGO Sun, 27 TUI Group, 27 United Nations International Labor Organization, 106 U.S Census Bureau, User-generated content, 97–98 U.S Marshall Fund Aid, 125 Vacation ownership, 43 Vertical integration, 89–93 in food distribution, 92 -93 Visas, 101–102 Wage regulations, 106–107 Wars, as threat to hospitality industry, 119–120 Weather, as threat to hospitality industry, 120–121 Wendy’s International, 33 White Lodging Services Corporation, 29 Wide Open Gambling Act, 17 Wilson, Kemmons, 9, 45 Workplace health and safety, 104 World Bank International Finance Committee, 125 tourism studies, 125 World Travel and Tourism Council, 68 Wyndham Worldwide, 27–28 Wynn Resorts, 36 Wynn, Steve, 19 Yum! Brands, 33, 54 OTHER TITLES IN OUR INDUSTRY PROFILES COLLECTION Donald Stengel, California State University, Fresno, Editor • A Profile of the Electric Power Industry: Facing the Challenges of the 21st Century by Charles Clark • A Profile of the Steel Industry: Global Reinvention for a New Economy by Peter Warrian • A Profile of the United States Toy Industry: Serious Fun by Christopher Byrne • A Profile of the Furniture Manufacturing Industry: Global Restructuring by Susan M Walcott • A Profile of the Oil and Gas Industry: Resources, Market Forces,Geopolitics, and Technology by Linda Herkenhoff • A Profile of the Farm Machinery Industry: Helping Farmers Feed the World by Dawn Drake • A Profile of the Automobile and Motor Vehicle Industry: Innovation, Transformation, Globalization by James M Rubenstein • A Profile of the Software Industry: Emergence, Ascendance, Risks, and Rewards by Sandra A Slaughter • A Profile of the Performing Arts Industry: Culture and Commerce by David H Gaylin 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leaders who translate realworld business experience into course readings and reference materials for students expecting to tackle management and leadership challenges during their professional careers POLICIES BUILT BY LIBRARIANS • Unlimited simultaneous usage • Unrestricted downloading and printing • Perpetual access for a one-time fee • No platform or maintenance fees • Free MARC records • No license to execute The Digital Libraries are a comprehensive, cost-effective way to deliver practical treatments of important business issues to every student and faculty member For further information, a free trial, or to order, contact:  sales@businessexpertpress.com www.businessexpertpress.com/librarians A Profile of the Hospitality Industry Betsy Bender Stringam • Charles G Partlow The hospitality industry is one of the world’s largest and oldest industries A Profile of the Hospitality Industry provides an inside look to the strategies of this industry This book reviews the developments, challenges, and opportunities for the hotel, restaurant, foodservice and gaming industries The hospitality industry is unique in many aspects which makes this book a must read for hospitality students, business students and those interested in management strategy Dr Betsy Bender Stringam is a faculty member for the School of Hotel, Restaurant and Tourism Management at New Mexico State University Dr Stringam previously worked in the hotel, resort, and restaurant industries at both the corporate and property level Dr Stringam received her BS in hotel administration from Cornell University, her MS in hotel and restaurant management from Florida International University, and her doctorate from Northern Arizona University Dr Stringam conducts research primarily focused on the hotel and resort industry, and is also the collection editor of the Tourism and Hospitality Management Book collection for Business Expert Press Dr Charles G Partlow is a professor in the School of Hotel, Restaurant and Tourism Management at the University of South Carolina in Columbia He earned his PhD from Kansas State University, his MS in hotel and restaurant administration from the University of Southern Mississippi and a BS in food management and dietetics from Mississippi State University Dr Partlow has over 35 years of experience in hospitality management, consulting, and education His teaching and research expertise lie in the areas of strategic management and leadership Industry Profiles Collection Donald N Stengel, Editor .. .A Profile of the Hospitality Industry A Profile of the Hospitality Industry Betsy Bender Stringam and Charles G Partlow A Profile of the Hospitality Industry Copyright ©... forces and their relationship to the hospitality industry The chapter reviews how availability and cost of transportation and travel impact the hospitality industry The chapter discusses the changes... casino development by other African nations as they eye the tax advantages and revenues of casino gaming HOW THE INDUSTRY OPERATES 19 South America has had an interesting history of casino gaming