2

CHAPTER

CLASSIFICATION OF HOSPITALITY AND

TOURISM INDUSTRY

“Only the traveling is good which reveals to me the value of home and
enables me to enjoy it better”
Henry David Thoreau

Establishments of Hospitality and Tourism are required to be classified

based on their minimum operating standards according to the facilities
and the services they provide to the customers. Across all the classifica-
tion under the industry of hospitality the most vital thing is customer
service which is to be taken care of, and this is what this chapter dis-
cusses in detail. Both the hospitality and tourism industry should focus
on one or all the classifications as part of their business.

OVERVIEW

Hospitality is not defined by just one single definition to explain its

wide concept. Most of the people from various fields of hospitality have
made an attempt to explain the functioning of this industry in various
forms. Many have tried to brief out the wide sections of this industry
and their features which involves both the real and the unreal domains
24 Hospitality and Tourism Management Trends, Challenges & Innovations

of this industry in the service sector and the delivery process. Others
have tried to give an outline of this industry by examining the stocks of
the shareholders who are involved, those who are equally benefited by
the industry and the industry’s influence on the society and the economy
as a whole. Broadly analyzing, the business of hospitality lays down
the fundamental habit of kindness in welcoming and looking after the
basic needs of their customers or even the strangers which is related
mainly in relation with the food, drinking and accommodation. The
traditional explanation of the definition of the term hospitality depicts the
relationship process between the customer and its host whenever there is
a talk about the “Hospitality Industry”, thus it refers to the companies or
organizations that provide the food or drink or the accommodation to the
people who are very away from their home.
However, this depiction of the hospitality industry satisfies most of
the situations. The backbone of hospitality industry is comprised of some
salient features like the customer service a concept that is widely shared
by all segments of the industry in which even a small business may focus
either one or all the facets of the hospitality. The accomplishment of
the serving staff at serving the others will determine the success level
of the business where one may be able to find it easier to excel in just
one category of the hospitality industry along with the other categories.
However, costs and challenges may increase along with the owning and
managing of several dimensions of hospitality. Hence, it can provide
an individual with many more opportunities to generate success in the
near future. In this chapter, a brief summary about the characteristics
and scope of the hospitality industry would be provide. Given below are
some of the aspects of the hospitality industry:

Defining aspects
Among all, the most striking dimension of this business is that it
concentrates on the customer’s level of satiation. However, it is concrete
for nearly every enterprise but this industry completely depends on
making the customers satisfied. This is also because these kinds of
industries are entirely based on providing the high quality luxurious
services that very few of the hospitality enterprises provide as a basic
service to those people who need basic amenities like food or clothing.
In addition, one striking dimension of these type of businesses is that
 Classification of Hospitality and Tourism Industry 25

they are dependent upon both the personal income and the free time of
an individual. Thus, for this implied reason, most of these enterprises
form the high rate for tourists or rich visitors. Then if the personal
income decreases during the slowdown of an economy or recession, and
increases during the inflation then mostly, these are called up by the first
enterprises to suffer the most because then the guests won’t have the
added penny to enjoy their required services.

Different kinds of businesses

According to the research, most of the people keep a thought that hotels
all together belongs to this industry, but hotels comprises only one portion
of this large industry. There are also many other modes of shipping and
commutation facilities that serve to the tourism and are a big segment of
this business world. For an instance, this arcade also includes the unique
parameters of airlines, ships and even super-fast running trains along
with the luxurious hotels and cafes.
These types of partial businesses also belong to the hospitality industry
as well. Take an example of a food restaurant that because it would be
easier to understand, as a restaurant that provides a good delicious food
with the amazing service would also be providing the best service.

Quality of service
Apart from this business, this type of organization depends heavily upon
delivering an excellent level of service in accordance to their customer
needs. Also, there is regular visit by the customers regarding those
businesses from which they want to stay away from their troubles as
one single bad experience might keep them from returning ever again
in the. There is one important component of providing the services that
comprises of brand loyalty, which is a very important part on the behalf
of the customers such that the associated companies do at their best to
provide the best service to their clients.
Most of the companies hire the number of employees based on their
skills and their attitude of behaviour as most of the subsequent employees
are in great terms with their customers where they can flawlessly provide
the customers according to what he or she needs.
26 Hospitality and Tourism Management Trends, Challenges & Innovations

Themes based on occasions

The last and most striking feature of this industry is its theme. However,
this may not be applicable to every business in the domain of this industry,
but a lot among them uses a specific type of theme to attract their fellow
customers. Take an example, of a restaurant that might have an Italian
theme to attract that type of customers who prefer mostly, that type of
taste and ambience, which fancies them.
Doing this not only helps the business to stand apart from their
competitors, but it also makes customers put the status of the business on
some another level. The businesses of hospitality provide more authentic
and appealing themes, which are often appreciated by more than usual
businesses of hospitality. Like in the case above if the restaurant cooks
more authentic Italian cuisines and make the use of proper decorating
and fancy elements, then that will directly make the customers satisfied
and more will to visit their business.
In general, a hospitality business does not require a properly defined
specific theme, but the vast majority of them use the one because
customers always love and highly prefer the themed businesses.

FEATURED DIMENSIONS OF THE HOSPITALITY IN-

DUSTRY

As we have got to know about various segments of the services being

delivered by this industry and after examining some key characteristics
of having a good staff in the hospitality industry we got to understand
that it could be quite challenging while working in the field of hospitality.
Though it is different in terms of providing the service as compared
to the other sectors, the hospitality industry is absolutely unique in its
own dimension which is highly dedicated to the service prioritized
theme and has a powerful emphasis on exchange of human perspective
in the delivering of service processes. A summarized version of some
key features that relates to the hospitality industry are given in figure as
below:
 Classification of Hospitality and Tourism Industry 27

Figure 2.1: Characteristics of the Hospitality Industry

Source: http://www.edb.gov.hk/attachment/en/curriculum-development/
kla/pshe/nss-curriculum/tourism-and-hospitality-studies/Hospitality_
English_21_June.pdf

Product-service mix
Just imagine about the experience of an individual of being a customer
in a restaurant or in a hotel. What else, discarding the impromptu service
regarding the food and beverage in restaurants and the utilities in hotel
rooms, can make the experience of hospitality either more enjoyable and
or satisfied? The answer lies in the fact that in the hospitality industry, it
is very rare that customers consume pure products as they got the taste of
blended products and services.
For an instance, the one who dine in a restaurant is not required to
pay only for the food and drinks but also the services that are provided
by the servers because the bill followed by covers both the realistic and
the unrealistic experience of the customer where some of the tangible
features can include for an example, a steak in the main course coupled
with wine, highly groomed service staff and the fancy decoration of
the restaurant whereas, the intangible features includes for an example
the comfortable dining atmosphere or the friendly attitude of the
management . On the other hand, the success of a hospitality business
28 Hospitality and Tourism Management Trends, Challenges & Innovations

does not only consider its products and services, but also the way they
are delivered. Both the factors which includes the qualities of the staff
and the way they deliver the service often carry more important than the
tangible products in making the experience of hospitality satisfactory or
unsatisfactory. Thus, these two features can contribute remarkably to the
total experience in the service of delivery process. As both the products
and the other tangible features can be easily used to allure the competitors,
the operations of hospitality which aim for high-ended customers and
maintaining superior quality regularly spend more and more productive
resources in enhancing the service to make it a standard and use it as a
strategy of differentiation while offering their services.

The two-way communication

To achieve the excellence in the services of the hospitality industry,
there comes the role of two-way communication which serves as one
of the critical factor that requires both the involvement and the equal
participation of both the fellow customers and service staff in the service
delivery process. By doing interactions with the customers there is an
important message that contains the information about their wants and
expectations that can be considered by the working staff for some prompt
actions to create the more satisfaction of the customer. The interconnection
between the internal staff or among the inter-departments is also very
critical since the count of overall experiences of the visitors in using any
type of accommodating or food and beverage services generally considers
the team work and distribution of information within the organization.

Building up of relationships
This industry of hospitality is largely dependent upon the loyal customers
for their survival. Strengthening the long period relationships with the
regular customers can benefit the industries of this domain to generate
the stable profits regardless of the fluctuations of the seasons and at the
same time they also develop the brand reputations of their firm through
the positive and promising words to the loyal customers. To establish
the brand loyalty, various measures are applied by the lodging and food
service sectors like sponsoring the various programs which states the
privileges and the incentives to make the visit of customers frequent.
However, the executives of any organization have faith in that the
 Classification of Hospitality and Tourism Industry 29

informal ways of structuring the good terms of friendship between the

front-line staff and the customers by giving the high level of personal
attention and customized delivery of products can win the loyalty of
customers in the long term.

Cultural diversity
Though this industry is closely knitted to the dynamic industry of
travelling, it is not shocking that human beings who are engaged in this
sector, no matter what happens both the customers and the staff experience
the diversity in the culture through interacting with one another. The
people who work in the hospitality businesses always have a positive
correlation with many customers from different cultures, or they may
have to work collectively with the other colleagues who might have the
different perspective or cultural history. It is well known that due to the
segmentation in the religious customs and their underlying values, some
issues or mistakes can be easily occurred. Therefore, staff should not be
narrow-minded, and be always ready to come up with the right solutions
together in solving the contingencies regarding their duties. For example:
From the viewpoint of the customers, many of them may abstain from the
consumption of meat due to their religious beliefs or their habits. Thus,
in that case, restaurants must provide the vegetarian food as a backup
option in order to satisfy the needs of their customers.
From the viewpoint of the members of staff, eating pork or any kind
of food products with pork as the main ingredient should be avoided
if some of the colleagues are Muslims to show the due respect to their
religious belief. Such kind of cultural diversity in this field implies that
the local staff should usually understand the different cultures such that
the flexible services can be provided to the customers according to their
own cultural belief and they should be in harmony and cooperation with
all the colleagues from different nationalities so that equality among all
can be achieved.

Labour intensive
Since the industry of hospitality is very service-oriented by its nature, it
requires a large supply of labors to create remember able experience for
the customers which is especially true for those enterprises that do target
for high-ended customers. For instance, the ratio of staff-to-guest is quite
30 Hospitality and Tourism Management Trends, Challenges & Innovations

high in the fine dining restaurants and the 5-star rated hotels which aim at
providing the one-on-one type of services to their customers. Though the
advancement in the technology contributes to the replacement of some
tasks during the whole service process, customers’ concerns lie in the
basic element of care where they generally expect high degree of human
contacts and personalized services for their consumption experiences.
Hence, it explains the reason behind why the industry is always in large
demand for labor and it is quite willing to spend the time and the efficient
resources in training and recruiting the desired candidates to join the
workforce of the hospitality industry.

SEGMENTS OF THE HOSPITALITY INDUSTRY

Hospitality is one of the phenomenal industries with myriad categories,

but if we talk of one factor that is common across all sectors, it is customer
service. This industry is loved by all. One can either focus on only one
segment of the industry or it can go for all facets of the hospitality
industry. The growth of the industry rests on two important parameters -
growth in personal income and willingness to have and enjoy time. These
two factors have led to the growth of this industry into a multi-dollar
industry in recent years.

Figure 2.2: Hospitality around the World

Source: https://www.soegjobs.com/2016/09/07/different-sectors-hospi-
tality-industry/
 Classification of Hospitality and Tourism Industry 31

The figure presented below shows the different domains of the

hospitality industry or in other terms as the hospitality world.
In the particular sector of hospitality, the success of any business
model depends ideally on how efficient the hospitality team can work
and how effective is the business model to implement it for further
analysis. So, one can make an in-depth analysis into all the categories of
the hospitality industry.
The two main components of this industry are the costs and the
challenges faced by the people that will rapidly move upwards, but by
either good management or claiming to different sections of the hospitality
management, it can give an option to move ahead for more awards in the
long-term plan. Hence, let us turn to the basic point again and look what
are the wide segments of the hospitality industry?
As discussed, below are the wide segments of the hospitality industry
in much detail. Five different segments of the hospitality industry are:

Lodging and accommodation

This is one of the most important parts of the hospitality industry as it
considers the range from the highly paid luxury hotels to the wide lavish
resorts and to hanging big grounds.
Lodging covers the very large section of the hospitality industry that
ranges from the bed & breakfast regimes in many of these industries to
the other requirements such as those who offer the lodging services.
Again, customer service is an inescapable constituent of this industry
as it provides accommodation services, which forms the major portion
of this industry along with some basic elements, which comprises
efficiency, comfort, and high-class facilities that lays it foundation. As
you might expect, accommodation can marry well with other segments
of the hospitality sector.
Out of the three most important things which are needed by the
people, the one which is most crucial is the accommodation and the other
two are catering and shopping. It is a fact that if one’s basic needs of
accommodation and food are well catered to rest all is easily manageable.
Nowadays, efforts are being taken to enhance the accommodation quality
of those people who travel around the world. Here, seen below are the
three major types of hotel and accommodation services such as:
32 Hospitality and Tourism Management Trends, Challenges & Innovations

Lodging: It is required when people from one place to the other place,
in search of shelter and sleep. It consists of a typical kind of place to keep
a head under roof so as to avoid the uncalled calamity of the nature which
then leads to people booking rooms for their stay.
• Suites: Suites are the specially designed rooms with extraordi-
nary facilities. They are very spacious when compared to other
rooms. They are basically for rich tourists for whom luxury is
the top priority. At times, these rooms are also used for corpo-
rate meetings or auspicious gatherings. In general, these are more
adaptable for the formal kind of staying which are much costly
when compared to the usual type of lodge services.
• Resorts: This is the upcoming trend, which is becoming very fa-
mous among the travellers for their enduring experiences. These
are typically made to bring people in touch with the natural ambi-
ence and give them the needed break from their daily routines.

Food and beverage

This is one of the most important aspects of this industry. This can simply
go from something very common as a cafe to a high-end bistro and to
every catering enterprise which lies in its way. Thus, this industry is
further divided into sub categories. Also, there is a well-built list how
the food service industry is categorized because it serves as an important
sector of hospitality industry. However, here we will list only some of the
categories such as:
• Quick-service enterprises – This comprises of those food
service cafes that compete among themselves for those
customers who look to grab quick snacks, drinks, and meals for
a take away. Commonly, they have less number of employees as
self-service is the common here for this type of establishments
for an example of McDonald’s, KFC, Subway, Pizza Hut etc.
• Catering – This category offers the food and beverage as the
part of catering services for any type of occasions which ranges
from weddings to parties and everything that lies in between
them.
• Full-Time service restaurants: These are the trending
 Classification of Hospitality and Tourism Industry 33

restaurants or eatery junction that offers full time meals, drinks,

and a wide range of other food services. Usually under these
enterprises, they arrange for a seating at a table and provide
waiters to take the orders of food. This can take the stretch
from fine dining to casual dining to themed restaurant as this
range comprises of these full-time service restaurants.
These types of themed restaurants have increased in the multiple
folds which varies from luxury underwater restaurants in the world to
the high-rise buildings which have gained the popularity and the ongoing
rate of food service options in this industry are considered as the full-
time catering provider restaurants which serves as a separate category in
the hospitality industry.

Figure 2.3: Sectors of the Food Service Industry

Source: https://www.soegjobs.com/2016/09/07/different-sectors-hospi-
tality-industry/

It is very common for people today to look for a variety of food

whenever they are on the go. It is in a spree that when people go to
different countries, they prefer to taste the local cuisines. So, both the
food and delivering of the food, marks the important ingredients of the
hospitality sector. It starts with the production of food and stops at the
presentation of the food at the eating joints. The storage and the food-
34 Hospitality and Tourism Management Trends, Challenges & Innovations

making steps in the process are the intermediate steps. There are many
stages of food processing which are involved in the food service industry
of hospitality. Some of them are:
• Food management: Food Management gears up with the fabri-
cation of food materials where many of the hotels and cafes serve
healthy organic food. Also, else from the production of food,
shipping and storage of food make a large part of this manage-
ment process.
• Food representation: It is quite evident that people like to con-
sume the food which attracts through its fancy and yummy rep-
resentation and tastes good as well. So, gradually more emphasis
have been putted on the decorative presentation of food to impro-
vise the underlying experience of hospitality industry.
• Beverages: Instead from the culture point of view, regular food
items, beverage storage and its depiction make it to the top of the
list of food and catering services.
• Restaurant management: Managing a restaurant is a subject of
concern now that is recently being taught in the colleges and the
institutions nowadays. With the implementation of appropriate
skills to conduct the management in a restaurant, one can oversee
the food, beverages and is able to keep a high-quality representa-
tion of food, such that it would drive the customers to come up
again to eat at the same place.

Travel and tourism

It is considered that tourism is likewise to the hospitality and not being
as the other part of the hospitality industry. So, the tourism industry
comprises a large sector of the hospitality along with various key players
from all over the world which also includes trains, airlines, ships, and
several other crew members that serve the service. Overall, players in this
sector of segment are in the act of moving people from one destination to
another. It is no exaggeration to state that the most crucial and profound
part of the hospitality industry is efficient travel and tourism. If there is
an issue in having established levels of travelling and tourism services
 Classification of Hospitality and Tourism Industry 35

in a specific region, hospitality industry in that specific area would not

reap. Thus, we can say that the travel and tourism forms the mainstay
of the hospitality industry which calls for the attributes like innovation,
strategy, and novelty to be considered at every level.
The discussion regarding travel and tourism is just not restricted to
the use of free time or for fun as both the forms of conventional and
unconventional modes of travelling are included in this zone. So many
of the natives travel from all over the globe for businesses, education,
entertainment, holidays, and many more things and just like the other
fragments of this industry, as this one too demands the attention of
customers, relationship administrators between the two and the other co-
integrated marketing skills for its smooth running and expansion.

Entertainment industry
Again, this is a major category of the hospitality organization because
it consists of the most important component of hospitality. It comprises
both the buyers and recipients of all hospitality services. Thus, it can be
said that this sector demands good hold on entertainment as enjoyment
forms a huge part of travel these days. It has been seen that if fun and
entertainment are absent from the travelling experience then an individual
may not be able to utilize his time to the optimum, and may not travel to
the same destination again, or, not use the same travel agency again.

Figure 2.4: Travel and tourism

Source: https://www.soegjobs.com/2016/09/07/different-sectors-hospi-
tality-industry/
36 Hospitality and Tourism Management Trends, Challenges & Innovations

Thus, for optimal functioning of the hospitality business, it is required

to have as much exciting activities as possible. Listed are some ideas
which can push up the good experience when it comes to entertainment:
• Marinas: Among all they are the most approached places to
visit when it comes enjoying. Anyone can accompany their
friends either on a private cruise where they can dance, play
and enjoy to the fullest of their life.
• Sporting and gaming: The most basic requirements of people
are sports and gaming which people look forward to during
their travel. As a result of this, casinos, pool parties and other
similar activities are becoming an irreplaceable part of the
hospitality sector.
• Cruise: Though not just above two but facilities on cruises are
also emerging as an important part of the hospitality industry.
Nowadays, people are more likely to lash out their days on the
luxury cruises that sail across the seas and oceans under the
blue sky to buy some other feeling.
• Nightclubs: Highly in demand, most of the hotels provide
these services
• Bars: On a casual day just hanging around while sitting around
a table and drinking a couple of drinks with the group of mates
turns out to be a new experience always. That is because
bars mark an essential part of the entertainment sector in this
industry.

Timeshare
An emerging though widely salient sector of the hospitality industry is
the owning of a place for vacation. Under this concept, many people
might be individually or in a group, own the rights of a specific place
for a certain period of time. Given below is a list of five sectors of the
hospitality industry as it was raised as a topic of interest by the hospitality
enthusiasts, as represented. This provides us with an option to own our
preferences and to rejoice the utilities by either purchasing a particular
section of a facility or by getting enrolled into a membership plan for
the time period. This way travellers can utilize this place under their
ownership like the way they desire to.
 Classification of Hospitality and Tourism Industry 37

Figure 2.5: Timeshare

Source: https://www.soegjobs.com/2016/09/07/different-sectors-hospi-
tality-industry/

There are a number of sites which people own under their respective
times period rule. Two among them are shown as below:
• Convention centres: These convention centres are basically
used to form the base of the hospitality industry as they provide
a good place for people who come together in bulks for confer-
ences, conventions, expo centres and other similar type of things.
• Villas and resorts: One can easily select the villas and resorts
type of facilities under their own timeshare rule, asking for little
part of the year where people prefer to go and enjoy with their
friends or family.
Thus, this section tries to answer the key question about different
sections of the hospitality industry, where some efforts are also made
to elaborate the specifications on these sectors so as bring a holistic
approach in presenting forward the outlook of the hospitality industry.
With the advent of new and emerging technologies and greater soft skills
of associated staff, the hospitality industry is deemed to grow in the
future as well.
38 Hospitality and Tourism Management Trends, Challenges & Innovations

Economics
The above discussed categories of the hospitality industry are mostly
driven by and are dependent on the economy. Any country’s small or
medium scale hospitality business will grow when the people in their
economy are able to go out to eat or enjoy their travelling experience.
On the other hand, that is conversely, it has been observed that when
the economic conditions of any country are challenging, the nation
can decide to bolster the basics of the business. For instance, food and
beverage businesses can attract handful of special activities, such as a
fundraising or discounts on meals on certain days of the week. As an
owner of a hotel, any individual might branch out and can provide the
space for conference or for some special event facilities which is further
extended to the transportation options such as arrangement of specials on
limousine services.

TOURISM

Tourism engulfs nearly all the aspects of our society. Apart from giving
importance to the daily economic changes, human socio-cultural and
traditional interactions along with environmental development, tourism
is heavily connected to other subjects as well like geography, economics,
history, psychology, marketing, business and law, etc. Thus, it is necessary
to integrate a number of subjects to study the wide aspect of tourism.
For example, subjects like history and geography help the student to
understand more about the historical development and the proper use
of geographical resources regarding the destination of tourist. Along
with these subjects, there are some other subjects like marketing and
business that helps the student to understand the strategy of promotion
and marketing of tourism products. The most important source of study
is the use of information technology that enhances the understanding of
the true importance of the global distribution system of tourists and the
tourism business. Also, the study of religion and its associated culture
provides the information on the cultural resources of the destination and
it develops the opportunities as a cultural destination. On the other hand,
Tourism is such a vast, highly complex, and a multifaceted prospect that
has its wide range of subjects that are related to the subject matter of
 Classification of Hospitality and Tourism Industry 39

tourism. The figure given below shows the academic subjects which are
interrelated to the studies of tourism studies.

Figure 2.6: Integrated Disciplinary Model of Tourism Studies

Source: http://www.edb.gov.hk/attachment/en/curriculum-development/
kla/pshe/nss-curriculum/tourism-and-hospitality-studies/Tourism_Eng-
lish_19_June.pdf

There is a very vast majority of business compliances such as travel

agents, meeting planners, and other service providers that includes
services like accommodation, transportation, various attractions and the
good entertainment package which are classified as the part of both travel
and tourism related business. In the actual practice, these organizations
are linked up to provide the services to the travelers at their best.

Key elements in the integrated model of tourism

The figure depicted below shows the key elements in the model of
tourism where this model summarizes the integrated form of tourism
that interacts with each other and subsequently, responds to the follow
changes in the external environment.
40 Hospitality and Tourism Management Trends, Challenges & Innovations

Figure 2.7: Integrated Model of Tourism

Source http://www.edb.gov.hk/attachment/en/curriculum-development/
kla/pshe/nss-curriculum/tourism-and-hospitality-studies/Tourism_Eng-
lish_19_June.pdf:

Detailed description of these elements is given below:

Travellers
Travellers comprise the most essential part of tourism which are at the
centre of the model where all the other activities of the tourism are
focused. As it can be seen there are three large bands containing several
interdependent groups between the tourism and their participants which
are radiating from the centre.

Tourism promoters
Tourism promoters are at the top in the first layer which are in close
contact with the travellers. The organizations that lie in this layer includes
the tourism boards, marketing companies, meeting up the planners,
consulting travel agents and various tour operators. The main function
of tourism boards and the direct marketing companies is to provide the
information and related marketing services to the travellers whereas, on
 Classification of Hospitality and Tourism Industry 41

the other hand, the main job of travel agencies, operators of tours and the
meeting planners is to provide the services that consist of
Making the travel arrangements and providing professional advice
on the matter related to the tourism. In general, all these organizations
deal directly with the individual travellers.

Tourism service suppliers

This category of tourism categorizes the service suppliers into different
domains such as the airline corporations, tourist bus operators, railway
corporations, ship operators, hotels and car rental companies, etc. that
usually provide the services to travellers independently according to their
needs. They may also collaborate with each other to provide the tour
packages according to the required needs of the travellers by combining
the different services such as accommodation, transportation, theme park
entrance ticket, pool parties etc.

External environment
At present, out of all people, either an individual or a group, are
continuously responding to a variety of both societal and cultural
practises. Apart from this, there is also political environment with the
new economic and technological forces. It is due to the interaction of
these forces which determine how closely are the individuals and their
respective organizations do work together.

Three main principles of tourism

The tourism industry that has it far reaching approach to all the parts of
the world, has been principled into three different types such as:
1) It facilitates the provision of the recreational activities
that lies all within the boundary of the community
through the proper involvement in the environment of
tourism that can be reached out to the even low-income
countries;
2) Tourism is not just subjected to the commercialization
of the travelling experience but it also takes into the
consideration those people who cannot afford their
traveling expenses. So, in this case subsidizing either
42 Hospitality and Tourism Management Trends, Challenges & Innovations

by the government or through some non-profitable

organization for the benefit of the poor is controlled.
3) Tourism industry is very versatile as it invites the
participation of the state, municipalities and the public
institutions as well to increase the development of
tourism.

TYPE OF TOURISM IS DETERMINED BY THE NA-

TIONALITY OF THE TOURISTS

According to the recommendations by the World Trade Organization,

there are following types of tourism for a specific country:
1) Inbound tourism – It refers to the local travellers who
travel within their country itself and not moving to any
international tourist spots, that is, inbound tourism is
restricted to traveling in and around the borders of their
own country.
1.1) Domestic travel – It refers to the travelling by the citizens
in their own country as well as in a particular state.
National
3) Outbound tourism – It refers to the travel by the residents
of one country to some other country.
Now let us see, how the above differentiated form incorrect please
revise of tourisms when combined together lead to the formation of the
following listed categories of the tourism:
• Firstly, tourism within the premises of one singular country
consists of both the domestic and inbound form of tourism;
• Secondly, the wide scope of national tourism stretches to both
the dimensions of domestic as well as outbound tourism;
• Thirdly, the tourism at the international level specifies the
aspect of tourism at both the inbound and outbound level of
tourism;
Thus, these types of classified categories can be effectively applied to
a specific country, to the specific region in that particular country or the
area which is then applied to the several countries. The basic function of
 Classification of Hospitality and Tourism Industry 43

tourism is to formulate the basic concept of travel. There are following

types of tourism based on the above classified form of travel.
• Recreational
• Health and beauty
• Cognitive
• Business
• Sports
• Ethnic
• Religious
• Transit
• Educational
The most common form of tourism includes the recreational and the
educational tourism.

Recreational tourism
It is one of the most important and a diverse form of tourism that includes
the entertainment programs, music and artwork, trekking, visit sports
or in any event as a spectator, etc. It has a wide range of tourism that
incorporates the most spectacular form of entertainment to the most
adventurous one.

Medical and health tourism

This form of tourism includes the need for the treatment from the various
type of diseases, followed by the promotion of health after the disease
has been detected and cured. traveling to another region or country for
the cause of sickness or spa relaxation, rehabilitation etc.

Cognitive (excursion) tourism

It includes the trips that are made to familiarize with the natural, historical
or the cultural attractions which includes the visit to museums, theatres
and historical traditions of the peoples to the country they make a visit
and sometimes for the educational purposes too. The trip may serve the
purpose of both educational and recreational purposes at the same time.
44 Hospitality and Tourism Management Trends, Challenges & Innovations

Business travel
Business travel covers the specific zones of business or profession that
can cater the purpose without generating the source of income from the
temporary residence. As classified by the World Trade Organization
this type of tourism lays down the parameters of travel to participate
in the scientific congresses and conferences, meetings and seminars,
organization of trade fairs and exhibitions and sometimes for the
discussion and taking the conclusion of contracts. Business travel also
includes the traditional convention and exhibition tourism along with the
incentive induced tourism. Incentive tourism refers to the reward of a
good work by the travel management company which is provided to the
employees as a free of charge. As per the rule, incentives include the
provision of a good quality service which caters to the definition of all-
inclusiveness. The overall share of the business travel is around 10 to
20% in the total volume of international tourism statistics.

Sport tourism
It refers to the travel that includes the events of sports which are organized
in the different countries in different regions. This type of tourism can be
further classified into the two types of tourism that is the professional and
amateur tourism. But in regard to the special form of tourism researchers
are more interested in the amateur form of tourism that can be later
classified into the winter, summer or in the form of water, air, desert and
mountain sports.

Ethnic tourism
It relates when the visit is made to either the place of the birth or where
the origin of the family is situated along with the residence of some close
relatives or friends. Sometimes, this kind of tourism is also known as the
nostalgic form of tourism as it makes the person to go down back to the
memory lane. A lot of importance is given to this type of tourism because
for some countries there exists a large proportion of people who are born
in some different other countries. For an example, tourists from Germany
usually make a trip to the Volga, and in the countries like Finland tourists
goes Karelia or Lake Ladoga.
 Classification of Hospitality and Tourism Industry 45

Religious tourism
This form of tourism is based on the needs of the people which is
attached to the religious faiths of thousands of people. Soemetimes, this
form of tourism can be called as the ancient too because its roots may
penetrate deep back into the ancient times. It comprises of basically two
main varieties, firstly, making trips to the pilgrims’ where an individual
alone facilitates the direction of spiritual pilgrimage and secondly, the
excursion made to the religious tourism in term of overall orientation.
Religious tourism is different from other types of tourism in some other
values.

Transit tourism
Transit tourism comprises of two varieties as given below:
• First, it depicts the movement of passengers to and from for
those who do not specifically enter area of the country, but they
only land to make a connecting flight to the other destination;
• Secondly, it refers to the movement of the passengers who
travel directly to the final destination but in between taking a
little stop for the connecting flights to some other countries.

Educational tourism
This type of tourism is mostly popular in the schools and universities
where the tours are made for the purpose of enlightening the practical
knowledge of the students which involves the tour lasting from 1 week
to around 1 month depending upon the need of the students to upgrade
their skills or to improve the base of their knowledge on different
subjects. These are the most popular type of tourism at present because
the educational tours are not only important to enhance the particular
knowledge but they also require the one to study the foreign languages or
make a move to improve the knowledge about a foreign language.
46 Hospitality and Tourism Management Trends, Challenges & Innovations

STRUCTURAL ORGANIZATION OF TOURISM

Based on the organization

The allocation of organization depends upon the organized and
unorganized tourism:
• Organized tourism- It involves the structure that is pre-
designed and fully organized by the tourist traveller programs
for the tourists or the passengers according to their needs and
budget constraint. By doing an advance booking by the tourist
to the firm and paying for all travel services beforehand along
the itinerary of routes makes the travelling very easy and
enjoyable.
• Unorganized tourism- It refers to those trips that the tourists
organize by themselves, without involving or mediating of
tourist companies before planning their trip. They independently
develop a travel map, clearly objectify the tour visits, plan their
accommodations, carry all their necessary travel documents,
etc. This type of unorganized fashion of tourism in the world
is very popular especially in those countries whose nations
member can easily travel to the other countries without any
requirement of entry visa

Based on duration
The duration of travel also comprises on of the important aspects of
tourism, such as:
• Travel for short-term purposes comprises of tours for up to 7
days,
• Travel for medium term purposes consist of tours lasting from
9 to 12 days and;
• Travel for the long-term purposes serves the tours period from
around 15 to 30 days.
 Classification of Hospitality and Tourism Industry 47

Based on the number of vehicles

Tourism is also classified by the type of vehicles that are involved during
the trip, such as:
• Railways
• Aviation
• Motor-ship / water (sea and river)
• Car
• Bus
• Cycling
• Other means of transportation

Based on the season

On the basis seasons, tourism can be divided into the following two
categories:
• Constant tourism- It refers to the form of tourism where regular
visits to the tourist regions and objects are made during the
whole calendar year.
• Seasonal tourism- It refers to the type of visits made to specific
tourist regions, the frequency of which depends largely on the
weather conditions of that visiting region and on the featured
characteristics of the facility of the tourist. The seasonality of
the tourism has a distinctive impact on the particular type of
tourism which is distributed between high, medium and low
condition of the season. The effect on seasonality of a specific
type of tourism has a major impact which is influenced by the
factor such as variation in the climatic conditions, national and
religious holidays, going on vacations and attending public
events.

Based on the age group

According to the different age group of the tourists, they are divided into
the following types of tourism:
• As children
• As the youth
48 Hospitality and Tourism Management Trends, Challenges & Innovations

• Middle-aged
• For the third age
According to The World Tourism Organization (WTO), tourists are
classified by their age in the following distinctive manner: children who
travel with adults lie in the age group of below 15 years (15 years), the
young population lies in the age group of 15 years to 24 years (15-24
years), those youth that are economically driven and are very enthusiastic
covers the age group between 25 years to 44 years (25-44 years), also
there are economically and socially active tourists that forms the middle
age group of tourists that lies between 45 years to 64 years (45-64 years)
and finally the third age categorize the tourists those above 65 years (65
years).The proper planning of tourism is customized according to the
specific age group which in terms is used for motivation and to support
financially the tourist travel.

Based on the funding

Funding of tourism can be divided into two different types such as
commercial and social tourism:
• Commercial tourism- This type of tourism aims at acquiring
the tourist enterprises to maximise their source of profit for
the development and enhancement of the production services.
To maximize the source of revenue, travel agents and their
agencies are always looking for the optimum blend between
the costs pf travelling and the final quoted price of the tour.
The tourism services which are provided by them are basically
focused on the tourists coming from the countries that are either
medium earning countries or high-income earning countries.
• Social tourism- On the other hand, social tourism is subsidized
by the funding such that the proper allocation of effective
spending can be created to generate the conditions for specific
categories of tourism. The source of subsidies comes from both
the government and from the privately-owned foundations and
charity organizations as well. In Manila Declaration states that
“social tourism - is the goal to which society should strive for
the benefit of the poorer citizens.”
 Classification of Hospitality and Tourism Industry 49

RECENT TRENDS IN TOURISM

Recently there has been a trend of a new type of tourism which includes
ecotourism, agritourism, some type of exotic adventures and some high
level of extreme tourism. They have appeared in the market due to the
demand of some new services that includes many factors such as change
in technological upgradation, provision of exciting new opportunities
to travel and learn, urbanization of the modes of transportation, which
is directly related to the connection which reduces the stress level and
to abstract the one from the daily routine of life which is attained at a
certain constant level of income that makes the one to travel and enjoy
blissfully. Below we have discussed some of the objectives of recent
trends of tourism:

Ecotourism
Ecotourism is personified with the main objective of keeping the true
values of the nature, providing ecological education to the people and
training the mass to reap the benefits in the future. The main feature of
this type of organization in the wide range of tourism is to ensure the less
than the minimum impact on the ecological balance when making the
arrangements for travel, by creating the balance of ecological hotels, also
by providing the travellers with the environmentally friendly food and
service etc. Ecotourism also takes care of the number of visits to the clean
areas such as reserves, sanctuaries, eco-friendly gardens, national parks,
etc that are unmodified or minimally affected by the human activity. A
part of eco-tourism also consists of education tours in schools or colleges
or the very trending wildlife photography.

Agritourism
Agritourism includes the aspects of the rural tourism and agriculture
associated travelling as it includes the visiting by the tourists to the
countryside either for some form of recreational activity or making visit to
some kind of entertainment organization especially considering relatively
clean and green towns areas. The popularity gains in this type of tourism
is by the development and the distribution of following characteristics
that relates to the rapid pace of urbanization, the availability of holidays
50 Hospitality and Tourism Management Trends, Challenges & Innovations

at a very reasonable and affordable price, the quick ability to supply the
eco-friendly and healthy fresh food which makes a desire to experience
the beauty of nature.
There are many reasons that are given by the people to choose the type
of holiday while considering the village tourism, which are considered
as follows:
• Due to the lack of the funds to spend on the luxury resort or
hotel
• To experience the well-established kind of life of the rural
areas
• The need for some change from the daily life routine that is in
the form of climatic conditions sometimes even recommended
by the doctor as well
• Easy approach to the natural environment and the availing the
chance to spend quality time at outdoors like in the forest
• The healthy and attractive chance to eat organic food
• Most importantly is to calm down the high rated pace of life
• An occasion to endure into the different culture and customs.
The organization of agritourism organization includes the following
tasks of creating the special tourist villages, by forming the concept of
rural tours with the facility of both the accommodation and the food
in the village houses that are a resident of ecologically clean regions.
There any one can come to the country side fields and plantations so as
to appropriate the required amount of fruits or any kind of vegetables.
This serves both type of facilities that consist of recreational activity and
also the source of entertainment for the people, while on the other hand it
helps to save the money and enables the farmers to avoid the heavy costs
of transportation of the crop.

Exotic adventure and extreme tourism

This type of tourism is associated with the visits made to some of the
exotic places that includes the trip to islands, waterfalls, safari deserts,
etc. And also, some of the adventurous activities like jeep safari, rafting,
hiking, diving, camel riding, scuba diving, etc.
 Classification of Hospitality and Tourism Industry 51

The special forms of tourism

This type of special forms of tourism includes the tours that are
characterized by the following features:
1) Non-mass tourism which forms the one of the rarest part
of tourism
2) Time-consuming after a point of time so as to create the
final product of tourism
3) The tourism that is capitally driven by the tourists
4) Tours that are specially customized to add different
features of tourism into one pack of tour
5) Some new innovative types of tourism due to the other
needs of the human nature
6) Lastly, the part of tourism that is embodied with the
traditional funding sources.
Mostly the below listed type of tourism meet the requirements of
those listed above, such as the following:
1) Religious tourism;
2) Business:
3) Medical and health tourism;
4) Eco-Tourism;
5) Event tourism;
6) Ski tourism;
7) Adventure tourism;
8) Cruise tourism.
With the gradual changing and challenging needs of the tourists,
there may come some special new type of tourism, and consequently,
some of the special forms of tourism can rapidly take a move into the
category of the ordinary tourism as well. Though it is a very broad-
based industry that can engulf other many different types of businesses,
there are some unique elements that can set it apart from doing the
same similar businesses. This companies basically not only focus on the
service of luxury, but they are also dependent on the disposable income
while giving the customers what they want. The main and most important
feature of this broad-reaching hospitality industry is to ensure that each
52 Hospitality and Tourism Management Trends, Challenges & Innovations

and every customer should be happy because their livelihood lies in the
brand loyalty of their work which forms the essential part of this industry.

Figure 2.8: Relationship between Hospitality and Tourism Industry

Source: http://www.edb.gov.hk/attachment/en/curriculum-development/
kla/pshe/nss-curriculum/tourism-and-hospitality-studies/Hospitality_
English_21_June.pdf

CONCLUSION

Hence, form the above classification of hospitality and tourism industry

we are able to get to the conclusion that the most important factor for the
functioning of both the industries are the “Guests” by which it means
the people who are far away from their loved ones or their homes and
therefore, it has generated a notion of the term to take care of them which
is widely known as the hospitality industry. The scope of the hospitality
industry, as viewed by all does not only cover the overall accommodating
and food service operations but other operations that are related to
the functioning of tourism, such as airlines and theme based tourism,
hospitality, however, serves both the needs of tourist and non-tourist as
well. Besides, there was a discussion about putting the hospitality and
tourism industry under the same umbrella.
 Classification of Hospitality and Tourism Industry 53

Figure 2.9: Scope of the hospitality and tourism industry

Source: http://www.edb.gov.hk/attachment/en/curriculum-development/
kla/pshe/nss-curriculum/tourism-and-hospitality-studies/Hospitality_
English_21_June.pdf

Thus, we have learned the two main business legs under the hospitality
industry i.e.,
• Accommodation – The first and most basic function of hospitality
and tourism industry is to provide the accommodation and
usually, with food and drink to the people who are away from
home to enjoy at their best.
Food and beverage – Secondly, to provide the arrangement of good
food and beverage to the local people, transient customers and or to those
tourists who wants to enjoy all the luxuries benefits of their stay.
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