DIMENSIONS
`
`0 F
`
`T H E
`
`Hospitality Industry
`
`An Introduction
`
`SECOND EDI TI ON
`
`PAUL R. DITTMER • GERALD G. GRIFFIN
`
`Apple Inc. Exhibit 1035
`
`

`
`DIMENSIONS
`
`0 F THE
`
`Hospitality Industry
`
`An Introduction
`
`SECOND EDITION
`
`P AUL R . DITTMER • GERALD G . GRIFFIN
`
`Two of the industry's most-respected authorities, Paul Dittmer and Gerald Griffin,
`introduce students to the multidimensional world of hospitality and tourism. The
`principal segments of these fast-growing industries are explored and explained in
`their newly revised text, Dimensions of the Hospitality Industry.: An Introduction, Second
`Edition.
`
`Organized into seven major sections, this exciting second edition begins with an
`overview of hospitality and tourism and concludes with incisive discussions of sig(cid:173)
`nificant issues facing managers in the industry today and likely to help shape its
`future. It covers the history of the industry and provides an introduction to the
`three principal segments-food and beverage, lodging, and travel and tourism.
`This edition includes a notable new chapter on hospitality operations management and a
`unique chapter on entertainment and recreation, designed to show their critical links to hospi(cid:173)
`tality.
`
`New features of this second edition help bring to the classroom real examples
`based on current news of the concepts discussed in the chapters and offer fasci(cid:173)
`nating glimpses of some of the personalities who have shaped the industry.
`
`The new edition is designed for optimal flexibility. Each section can either stand
`alone as a significant independent unit or be used as an easily integrated part of the compre(cid:173)
`hensive whole.
`
`To further aid the student, each chapter begins with learning objectives and
`concludes with a list of key terms and numerous questions aimed at developing
`a knowledge base or thinking skills. The final feature in most chapters, identi(cid:173)
`fied as Moments of Truth, is a series of focused case studies for classroom dis(cid:173)
`cussion.
`
`Dimensions of the Hospitality Industry: An Introduction, Second Edition, sets up a rock(cid:173)
`solid foundation for the study of hospitality and tourism, and continues to inspire
`confidence in all students who wish to venture into the world's largest and fastest(cid:173)
`growing industry.
`
`John Wiley & Sons, Inc.
`Professional, Reference and Trade Group
`605 Third Avenue, New York, N.Y. 10158-0012
`New York • Chichester • Weinheim
`Brisbane • Singapore • Toronto
`
`Warehouse- BK20201196
`Dimensions of the Hospitality Industry: An Introduction
`Used, Good
`(uG) H
`91&119
`
`lm
`
`Apple Inc. Exhibit 1035
`
`

`
`Dimensions
`of the
`Hospitality
`Ina us try
`An lntroduttion
`SECOND EDITION
`
`Paul R. Dittmer
`New Hampshire College
`
`Gerald G. Griffin
`New York City Technical College
`The City University of New York
`
`JOHN WILEY & SONS, INC.
`New York Chichester Weinheim Brisbane Singapore Toronto
`
`Apple Inc. Exhibit 1035
`
`

`
`This book is printed on acid-free paper. e
`Copyright© 1993, 1997 by John Wiley & Sons, Inc. All rights reserved.
`
`Published simultaneously in Canada.
`
`No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
`form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise,
`except as permitted under Sections I 07 or I 08 of the 1976 United States Copyright Act, without
`either the prior written permission of the Publisher, or authorization through payment of the
`appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA
`01923, (978) 750-8400, fax (978) 750-4744. Requests to the Publisher for permission should be
`addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New
`York, NY 10158-0012, (212) 850-6011 , fax (212) 850-6008, E-Mail: PERMREQ@WILEY.COM.
`
`This publication is designed to provide accurate and authoritative informlltion in regard to the
`subject matter covered. It is sold with the understanding that the publisher is not engaged in
`rendering professional services. If professional advice or other expert assistance is required, the
`services of a competent professional person should be sought.
`
`Library of Congress Cataloging-in-Publication Data:
`
`Dittmer, Paul.
`Dimensions of the hospitality industry: an introduction I Paql R.
`Dittmer, Gerald G. Griffin.- 2nd ed.
`p. em.
`Includes index.
`ISBN 0-471-28711-3
`I. Hospitality industry-Management.
`II. Title.
`1936-.
`TX911.3.M27D583 1996
`647.94'068---{!c20
`
`I. Griffin, Gerald G.,
`
`Printed in the United States of America
`
`2 3 4 5 6 7 8 9 10
`
`96-14906
`
`Apple Inc. Exhibit 1035
`
`

`
`o n e
`Dimensions of the
`Hospitality Industry
`
`A Career Oven;iew
`
`After reading and studying this chapter, you should be able to:
`1 Distinguish between the manufacturing and service sectors in an
`economy.
`2 Define hospitality and describe the scope of the hospitality industry.
`3 Identify the two principal segments of the hospitality industry and list
`the major types of businesses in each.
`4 Describe the relationship between the hospitality and the travel and
`tourism industries.
`5 Discuss the historic role of entertainment in the hospitality industry.
`6 Distinguish between travel agents and tour operators.
`l List and explain the elements that make the hospitality industry
`unique.
`8 Discuss the special characteristics that distinguish hospitality and
`other service businesses from those that manufacture products.
`9 Define the terms moment of truth, cycle of service, and employee
`empowerment and then discuss the significance of each for the
`hospitality industry.
`
`3
`
`Apple Inc. Exhibit 1035
`
`

`
`4
`
`Part One .,. Introduction
`
`10 Identify the principal thrust of total quality management and its
`significance for hospitality management.
`11 Discuss career opportunities in the hospitality industry and the
`qualifications commonly sought by hospitality employers.
`12 Describe the advantages and disadvantages associated with
`careers in the hospitality industry.
`
`Introduction
`Imagine yourself in an occupation that allows you to work in almost
`any part of the world, gives you the chance to meet famous people(cid:173)
`movie stars, recording artists, political leaders, and others-offers an
`elegant work environment in luxurious surroundings, and lets you
`climb that well-known ladder of success, advancing in rank and posi(cid:173)
`tion as fast as your abilities will allow. Don't think of it as only a
`dream ; it's reality for many people just like you-people who decided
`on careers in hospitality, a worldwide industry that continues to grow
`faster than most people can imagine and that cries out for young men
`and women to help manage the hotels, restaurants, and related busi(cid:173)
`nesses springing up in every corner of the world. There are vast num(cid:173)
`bers of opportunities for anyone interested in people and willing to
`work hard. And it's one of the most interesting industries in the mod(cid:173)
`ern world economy.
`Hospitality is just one part of a larger group of industries that
`make up the service sector of the economy. The economy can be
`divided into two sectors: the first includes companies that make real
`physical items that people can touch-these are known as products,
`and the sector that makes them is known as the manufacturing sector;
`the second-the service sector-is made up of individuals and organi(cid:173)
`zations that perform services for people and businesses. The service
`sector includes a broad range of fields-law, interior decorating, den(cid:173)
`tistry, accounting, nursing, automobile repair, foodservice, haircutting;
`the list goes on and on, almost without end. Hospitality is a major part
`of the service sector.
`In years past, the manufacturing sector was the major force in the
`economy, accounting for the largest part of the economic growth that
`so changed the United States in the nineteenth century and the first
`half of the twentieth century. However, in the years since 1950, the ser(cid:173)
`vice sector of our economy has been growing much faster than the
`
`Apple Inc. Exhibit 1035
`
`

`
`(hapter One .,.. Dimensions of the Hospitality Industry
`
`5
`
`manufacturing sector, and the hospitality industry has been growing
`faster than most other service industries. All kinds of career opportuni(cid:173)
`ties are opening up every day in every part of the hospitality industry,
`and the number of jobs keeps growing.
`Ever since the 1950s, hospitality has been a key industry in the
`economic life of many nations. It has become a world leader in provid(cid:173)
`ing jobs and new opportunities for people from every age group and
`from all ethnic, racial, and socioeconomic groups. Most economists
`predict that hospitality will continue to grow worldwide in the years
`ahead. That would mean ever greater numbers of career possibilities
`for the men and women who train to become hospitality professionals
`and prepare to seize these new opportunities.
`As we begin our investigation into the hospitality industry, we will
`devote this first chapter to some basic elements: identifying the scope
`of the industry, contrasting it to other industries, and pointing out its
`distinctive characteristics. Finally, we will point out some of the oppor(cid:173)
`tunities the hospitality industry offers the men and women who pre(cid:173)
`pare to take advantage of it.
`
`A Definition of Hospitality
`
`The word hospitality has ancient roots, dating from the earliest days
`of Roman civilization. It is derived from the Latin word hospitare,
`meaning "to receive as a guest." Several related words come from the
`same Latin root, including hospital, hospice, and hostel. In each of
`these, the principal meaning focuses on a host who receives, wel(cid:173)
`comes, and caters to the needs of people who are temporarily away
`from their homes. To receive as a guest is a phrase that implies a host
`prepared to meet a guest's basic requirements while that guest is away
`from home. The requirements of a guest in these circumstances have
`traditionally been food, beverages, and lodging or shelter. Many would
`add to this some form of incidental entertainment, even though a num(cid:173)
`ber of hosts clearly have limited or ignored this as an element of hospi(cid:173)
`tality.
`
`~The Basics
`
`The traditional view takes us to the heart of the hospitality industry. If
`the word hospitality refers to the act of providing food, beverages, or
`
`Apple Inc. Exhibit 1035
`
`

`
`6
`
`Part One .,. Introduction
`
`lodging to travelers, then the hospitality industry consists of busi(cid:173)
`nesses that do this. Some may offer entertainment, incidental or other(cid:173)
`wise. But we choose to treat this as part of travel and tourism rather
`than food, beverage, and lodging-the basic elements of hospitality.
`The reason for that will become apparent later in this chapter. For this
`text, we will define the hospitality industry as businesses that provide
`food, beverages, or lodging to travelers.
`This brings up two important distinctions between the hospitality
`industry and other service enterprises.
`
`1. The hospitality industry provides food, beverages, lodging, or
`some combination of the three that other businesses would provide
`only on the most incidental basis.
`
`2. The hospitality industry provides services primarily to travel(cid:173)
`ers in a broad sense of the term. By contrast, other service businesses
`ordinarily deal with customers who are local residents rather than
`travelers.
`
`Our definition also distinguishes the hospitality industry from busi(cid:173)
`nesses in the manufacturing sector of our economy. Manufacturers do
`not normally sell services. Instead, they make products that are sold to
`consumers through regional systems of local wholesalers and retailers,
`with some notable exceptions.
`There are those who will be quick to point out a potential problem
`with our view of the industry. Clearly, sometimes a service provided for
`travelers is also provided to local residents. Restaurants and hotels that
`provide food, beverages, lodging, or some combination of these to resi(cid:173)
`dents of their local neighborhoods are excellent examples.
`Those concerned with the question of the residential or nonresi(cid:173)
`dential nature of customers in a hotel dining room will soon recognize
`the futility of attempting to make useful distinctions. Regardless of
`where the customers live, the staff must offer the same menus and pro(cid:173)
`vide the same level of service to all. Although the hospitality industry
`evolved as a means of providing food, shelter, and entertainment for
`travelers, these services appeal to local residents as well, and increas(cid:173)
`ing numbers have come to take advantage of them over time. Today,
`some hospitality enterprises may service local residents only and never
`attend to the needs of any travelers. For practical and definitional pur(cid:173)
`poses, then, those providing food, beverages, and shelter are consid(cid:173)
`ered part of the hospitality industry whether or not their customers are
`actually travelers.
`
`Apple Inc. Exhibit 1035
`
`

`
`Uapter One .,._ Dimensions of the Hospitality Industry
`
`7
`
`Scope of the Hospitality Industry
`
`From the previous material, it quickly becomes apparent that there
`may be any number of businesses in the hospitality industry. The defi(cid:173)
`nition is really quite broad; therefore, at this point we will discuss
`some of the varied enterprises that make up each of the two principal
`segments of the industry-food and beverage on the one hand, and
`lodging on the other .
`
`..,.. Food and Beverage Segment
`
`Everyone is aware of the seemingly limitless array of organizations
`that provide food and beverage service to the public. Today, these
`include every conceivable type of establishment between a brightly col(cid:173)
`ored fast-food' restaurant and one offering elegant, ultraexpensive
`continental or French cuisine. No matter what type of food travelers
`and nontravelers alike desire, there must be foodservice available to
`them at the appropriate hour for breakfast, lunch, dinner, supper,
`snacks, and so on.
`The public looks for foodservice everywhere: hotels, motels, facto(cid:173)
`ries, dormitories, highways, cruise ships, city streets, trains, offices,
`airlines, national parks, airports, bus terminals, shopping malls-any
`place outside the home where people can be found shopping, driving,
`working, or playing. There are commercial restaurants of every
`description around us every day: fast-service restaurants selling ham(cid:173)
`burgers, chicken, pizza, pasta, and hero sandwiches; ethnic restau(cid:173)
`rants selling Chinese, Mexican, Italian, Latin American, German,
`Indonesian, Indian, and dozens of other types of meals; specialty
`restaurants serving seafood, steaks, pasta, chicken, and vegetarian
`items; restaurants organized around particular themes, such as rail(cid:173)
`road cars, English pubs, railroad stations, medieval pageants, opera,
`and the circus; and a range of others-expensive, inexpensive, noisy,
`quiet, elegant, dingy, brightly lit, and dark; serving great food, decent
`food, terrible food, and every other kind you can imagine.
`
`I Although the term fast food is very common, many believe fast service or quick ser(cid:173)
`vice are more suitable terms. We will use all three interchangeably in this text; those
`learning about the hospitality industry should be familiar with all three.
`
`Apple Inc. Exhibit 1035
`
`

`
`8
`
`Part One .,.. Introduction
`
`No matter what type of food people desire-fast food, ethnic cuisine, or the finest in continental cuisine(cid:173)
`the foodservice segment of the hospitality industry is there to provide it. Shown above are Chiam Chinese
`Cuisine, New York City; Le Regence Restaurant in the Plaza Athenee Hotel, New York City; and a Burger
`King restaurant. (Photos courtesy of Chiam Chinese Cuisine, New York City and Exclusive Hotels by Forte.
`The photograph of the Burger King® restaurant is reproduced with permission of Burger King Corporation,
`1996, Miami, Florida.)
`
`Apple Inc. Exhibit 1035
`
`

`
`Chapter One ~ Dimensions of the Hospitality Industry
`
`9
`
`There are all sorts of foodservice establishments outside the usual
`restaurant settings. Examples are found in Disney World and other
`theme parks, in schools and colleges, in hospitals and homes for senior
`citizens, in prisons and halfway houses, and in shelters for the home(cid:173)
`less. There are carts in the streets and vending machines everywhere;
`even supermarkets and other food stores are offering in-store food(cid:173)
`service.
`Those familiar with the history of our industry will recognize that
`taverns traditionally have been establishments that sold both food and
`beverages and provide some form of entertainment, however limited.
`Some taverns even made overnight accommodations available for trav(cid:173)
`elers. In fact, in the seventeenth century, laws were passed in New En(cid:173)
`gland requiring that each community provide a tavern for the "enter(cid:173)
`tainment of travelers."
`The tavern, pub, inn, ale house, or public house served as a social
`center-a place to which travelers and local residents could go to find
`"entertainment," and it served society in this manner throughout the
`eighteenth and nineteenth centuries, long before the invention of such
`pervasive modern devices as phonographs, movies, radios, televisions,
`videos, tape decks, and compact disc players. People gathered in the
`taverns, where local residents could mingle with travelers, to share
`news of wars, plagues, famines, or natural disasters and to discuss
`local politics or gossip about their neighbors. Sometimes it was only to
`find a quiet, warm place by the fire; normally it created an occasion for
`a mug of beer, a tankard of ale, or even a glass of wine.
`During the twentieth century, the role of the establishments selling
`beer, ale, wine, and other beverages has changed to some extent. As we
`shall see, the role of taverns has expanded and evolved in the modern
`world. Their role as entertainment centers has diminished, but they
`are meeting new needs in society, needs that did not exist before the
`introduction of some of the modern world's technological innovations.
`Most are no longer called taverns; they are now known as bars, clubs,
`and cocktail lounges.
`Hotels and restaurants have long been in the business of selling
`drinks--as accompaniments to food, or because their customers
`began to expect it, or because they discovered it was profitable. The
`terms food and beverage became ever more closely linked, and both
`hotels and restaurants began to use terminology that illustrated the
`linkage; "food and beverage manager" and "food and beverage depart(cid:173)
`ment" became common and remain so. Because our industry treats
`food and beverages together as one segment of the industry, we will do
`the same in this text.
`
`Apple Inc. Exhibit 1035
`
`

`
`I 0
`
`Part One ~ Introduction
`
`...,. The Lodging Segment
`
`The lodging segment of the hospitality industry includes the more
`familiar kinds of establishments that have long offered shelter to trav(cid:173)
`elers--the hotels and motels that we see on city streets; along high(cid:173)
`ways; near beaches; and close to airports, ski slopes, theme parks,
`lakes, and national parks. Those who are less familiar with the indus-
`
`The lodging segment of the hospitality industry includes hotels, motels, inns, and other familiar kinds of
`establishments that have long offered shelter to travelers. Shown above are some of the best-known names
`in lodging-Red Roof, Hyatt, Embassy Suites, and Sheraton. (Photos courtesy of Red Roof Inns, Inc.; Hyatt
`Hotels and Resorts; Embassy Suites Hotel photo courtesy of Promus Hotel Corporation; and ITI Sheraton
`Corporation, Boston.)
`
`Apple Inc. Exhibit 1035
`
`

`
`,.......
`
`Chapter One ~ Dimensions of the Hospitality Industry
`
`11
`
`try may not realize that some lodging facilities- called inns, motor
`hotels, lodges, or motor inns-are simply hotels or motels using differ(cid:173)
`ent names. There are also lodging establishments using some very dif(cid:173)
`ferent terms and selling some very different lodging concepts from
`those of the traditional hotels and motels, such as the bed and break(cid:173)
`fast, resort hotel, resort condominium, conference center, extended
`stay, time-sharing, and all-suite-all terms that must be addressed in a
`discussion of the lodging segment. Then there are lodging establish(cid:173)
`ments that are known for the special facilities they offer: ski lodges in
`Colorado and casino hotels in Las Vegas and Atlantic City are good
`examples. Definitions and discussion of the various types of lodging
`establishments are found in chapter 7.
`In many ways, campgrounds and transient trailer parks are lodg(cid:173)
`ing establishments and, in their own special ways, so are school and
`college dormitories, summer camps, and health spas. All attend to the
`lodging needs of those away from home.
`In other parts of the world, the signs for lodging establishments
`may display some unfamiliar words. Some examples include para(cid:173)
`dor-an old Spanish monastery or castle converted for use as a hotel;
`pension or pensione-a French or Italian home at which guests are
`provided with room and board; chateau-a French castle or elegant
`country home used as a hotel; ryokan-a Japanese inn at which tradi(cid:173)
`tional customs are observed; and hostel-a lodging facility at which
`inexpensive accommodations are provided for students and others,
`typically on a not-for-profit basis.
`Lodging signs also bring us some of the world's best-known names
`in hospitality: Hilton, Sheraton, Holiday Inn, Marriott, Ramada, Days
`Inn, Quality Inn, and Hyatt, to name just a few. All these, and many
`others, help make up the dynamic and growing lodging segment of the
`industry.
`
`Travel and Tourism
`
`Two key terms that arise in any discussion of the hospitality industry
`are travel and tourism. They are typically used together as an
`umbrella term to refer to those businesses providing primary services
`to travelers. These include the traditional hospitality businesses and a
`number of others closely linked to them. The term travel and tourism
`includes food and beverage operations, lodging operations, and related
`enterprises in the fields of entertainment, recreation, and transporta(cid:173)
`tion, as well as travel agencies and tour operators.
`
`Apple Inc. Exhibit 1035
`
`

`
`12
`
`Part One .,.. Introduction
`
`..,... Entertainment and Recreation
`
`Entertainment has its roots in the traditional duty of a host to enter(cid:173)
`tain his guests, whether neighborhood residents or travelers from afar.
`Hosts have always felt an obligation to minister to any of their guests'
`needs, not only for food and beverages and for lodging but also for
`entertainment.
`Beginning centuries ago, innkeepers, tavern keepers, and their
`descendants have attended (in varying degrees) to guests' needs for
`entertainment. Some simply talked to their guests; others told stories
`(some truthful, others interesting or humorous lies); some provided
`games (e.g., darts, draughts, backgammon, or chess); and others hired
`jugglers and traveling minstrels.
`Today, entertaining guests includes the modern equivalents of
`these ancient traditions, but it has not been limited to these. The con(cid:173)
`cept of entertaining guests is far broader. Guests are being offered all
`manner of inducements in the form of entertainment and recreational
`activities to attract them to particular properties; golf, tennis, casino
`gambling, backpacking, concerts, swimming, boating, and handball
`are all examples of this.
`In some cases, governments and businesses have worked together
`to turn communities into desirable destinations for travelers. For
`example, casino gambling and celebrity entertainment are two of the
`principal reasons that people go to Las Vegas, Nevada. The more tradi-
`
`Sometimes
`government and
`business work
`together to turn
`communities into
`desirable
`destinations for
`travelers. Las
`Vegas, Nevada,
`famed for casino
`gambling and
`celebrity
`entertainment, is a
`prime example.
`(Photo courtesy of
`The Las Vegas
`News Bureau.)
`
`...
`
`--
`
`Apple Inc. Exhibit 1035
`
`

`
`Chapter One ~ Dimensions of the Hospitality Industry
`
`13
`
`tional elements of the hospitality business are almost incidental play(cid:173)
`ers there.
`Disney World has taken a logical next step, developing a resort
`environment that includes a vast array of food and beverage, lodging,
`and entertainment facilities. The entertainment facilities include
`shows, rides, and exhibits so spectacular that guests have no interest in
`looking for any entertainment outside the Disney environment during
`their visit. This is one example of a complete recreational center that,
`in itself, has become a travel destination. To guests, the food, beverage,
`and lodging is relatively incidental; they travel to Disney World for the
`spectacle of it all .
`
`...,.. Transportation
`
`All travelers require some means of getting from one place to another.
`That is a major purpose of the transportation business-making it pos(cid:173)
`sible for people to go from one place to another. There are many ways
`to do this, from the primitive and simple to the modem and complex.
`One can ride on the back of an animal or in a supersonic jet, or select
`from among any number of other possibilities. The more common pos(cid:173)
`sibilities are automobiles, recreational vehicles (RVs), buses, ships,
`trains, and airplanes.
`Those preparing for professional careers in any part of the tradi(cid:173)
`tional hospitality industry should be aware of the long-standing impor(cid:173)
`tance of transportation to the survival of hotels, motels, restaurants,
`and closely related enterprises. Links between the transportation and
`hospitality businesses are as old as history, and developments in one
`have normally brought about changes in the other. Nations and states
`with the best transportation networks have usually developed the
`healthiest economic systems and the most advanced hospitality indus(cid:173)
`tries .
`
`...,.. Travel Agencies and Tour Operators
`
`Travel agencies and tour operators are comparatively modern addi(cid:173)
`tions to the world of travel and tourism. Neither existed before the
`middle of the nineteenth century, but both have become central to the
`survival of many businesses in the hospitality industry.
`A travel agent is one who sells travel services in a travel agency.
`Transportation and lodging are the most common services they sell,
`
`Apple Inc. Exhibit 1035
`
`

`
`14
`
`Part One .,.. Introduction
`
`although meals are sometimes included in the price of lodging.
`Although a travel agent makes a large number of individual reserva(cid:173)
`tions for airline tickets and hotel rooms for some clients, much of the
`business volume in travel agencies normally consists of selling travel
`services assembled by others into packages. In the travel business, a
`package is a bundle of related travel services offered to a customer at
`a single price.
`There are many types of packages available through travel agencies.
`Some include only a limited number of services-an airline ticket and a
`rental car, for example, or a hotel room and tickets for a ski lift. Other
`packages are more inclusive and may provide the buyer with a
`round-trip airline ticket, rental car, hotel room, all rrieals, access to such
`features as golf courses and tennis courts, and tickets to various events.
`Most travel agencies selling packages do not put the packages
`together. This is done by tour operators-wholesalers who make the
`necessary contacts with hotels, airlines, and other providers of travel
`services. They devise packages that they believe will appeal to retail
`buyers. Like all wholesalers in all businesses, they are volume pur(cid:173)
`chasers who are able to negotiate lower prices because of their
`high-volume purchases. They are typically able to offer any collection
`of travel services at a price lower than the individual consumer or his
`travel agent would be able to arrange.
`Many resorts owe their survival to travel agents and tour opera(cid:173)
`tors. So too do other hospitality enterprises that depend on the sales
`volume provided by guests at these resorts. Resorts on some of the
`Caribbean islands, for example, find that up to 80 percent of their
`guests have been booked by travel agents. The vast majority of other
`international travel arrangements are made by travel agents.
`
`Special Characteristics of Hospitality Management
`
`People who manufacture durable goods almost never meet the final
`purchasers of their products. Toy manufacturers do not see the chil(cid:173)
`dren who use their toys and seldom know the real extent to which chil(cid:173)
`dren are pleased or disappointed with their toys. Some customers may
`write the toy manufacturer to express pleasure or disappointment, and
`some may return toys to the manufacturer for repair or replacement,
`but that is usually the extent of their customer contact.
`By contrast, people in the service industries typically deal directly
`with their customers, meeting them face-to-face on an ongoing basis.
`Hotel employees, for example, provide services directly to customers.
`
`Apple Inc. Exhibit 1035
`
`

`
`Hospitality
`Foundations I
`
`Early Development
`of the Hospitality Industry
`
`After reading and studying this chapter, you should be able to:
`1 Explain the historical interrelationships between travel and the
`hospitality industry.
`2 Identify the types of hospitality enterprises common in the Egyptian,
`Greek, and Roman empires and describe their principal
`characteristics.
`3 Describe the hospitality services generally available to travelers in the
`period between the Fall of Rome and the Renaissance.
`4 Discuss conditions faced by travelers in western Europe during the
`Renaissance period.
`5 List and explain the principal political, economic, and social
`developments that led to improvements in travel and in the
`hospitality services available to travelers in the period A.D. 1600 to
`1800.
`6 Identify the principal changes in the hospitality industry that resulted
`from the development of rail travel.
`7 Identify and describe the earliest types of hospitality establishments
`in America.
`
`33
`
`Apple Inc. Exhibit 1035
`
`

`
`34
`
`Part Two .,. Foundations
`
`8 Identify the historic significance of each of the following hotels and
`restaurants: Coles Ordinary, Fraunces' Tavern, City Hotel, Tremont
`Hotel, San Francisco's Palace Hotel, Denver's Brown Palace, The
`Greenbrier, Ye Olde Union Oyster House, Delmonico's.
`9 Discuss the impact of railroads on the development of both city
`hotels and resort hotels in the nineteenth century.
`10 List and discuss the characteristics of nineteenth-century city hotels
`in the United States that made them unique in their time.
`11 Describe the dimensions of the fire problem in city hotels in the
`nineteenth century.
`12 List and discuss the economic and social conditions that fostered
`the growth of the foodservice industry in the nineteenth century.
`13 Name six types of foodservice establishments common in major
`U.S. cities in the nineteenth century.
`14 Identify the following individuals and describe the principal
`contributions of each to the development of the hospitality industry:
`Samuel Coles, Samuel Fraunces, Isaiah Rogers, Harvey Parker,
`Henry Flagler, and Fred Harvey.
`
`Introduction
`
`Anyone planning a career in the hospitality industry should have some
`interest in both the present state of the industry and in its history-a
`rich history that explains a lot about today's hospitality industry. As an
`educated person, every hospitality manager should understand the
`industry; that is, she should know more about it than the relatively lim(cid:173)
`ited information necessary for doing her job each day. In our view, all
`managers should be able to discuss any aspect of our industry, current
`or historic, with coworkers, superiors, and subordinates.
`This chapter and chapter 3 offer some hint of the industry's classic
`and historic roots. They do not constitute a complete and comprehen(cid:173)
`sive history of the hospitality industry worldwide and in its many man(cid:173)
`ifestations: such a history would require volumes. However, the mate(cid:173)
`rial presented here will provide a suitable foundation for understanding
`the development of our industry and may impel some-those who