Zhigang  Gao [Gina]                                        HMGT 1101 draft:  Chapter2 summary

10/6/15                                                             Prof. Damien Duchamp

Chapter two focuses on discuss the advantages and disadvantages of each type of hotel. Also focuses on hotel development and ownership.

1. Capital intensive def: A business process or an industry that requires large amounts of money and other financial resources to produce a good or service. My example: cranes are capital intensive industry and operation cost, their management is becoming more and more important.
2. Fair return on investment- def: the return that conforms to the rate of similar investments and reflects a fair payment for property. My example: I put twenty- thousands in a shipping company to share the profit. After one year I got thirty- thousands.
3. Feasibility study- def: is a process that defines exactly what a project is and what strategic issues need to be considered to assess its feasibility, or likelihood of succeeding. My example: Before I run a new business I used do feasibility study with my partner.
4. Direct economic impact- def: is a measure of the total amount of additional expenditure within a defined geographical area, which can be directly attributed to staging an event. My example: people’s minimum wages low is the direct economic impact for vacation industry.
5. Indirect economic impact- My example: RMB depreciation indirect economic impact Chinese tourist number went to the United States.
6. Franchising- is the practice of the right to use a firm’s business model and brand for a prescribed period of time.  My example: my friend got franchising of crown bake store which is a chain store, they require all the store have to obey same rule and decorations.
7. Management contracts – is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise that performs the necessary managerial functions in return for a fee. My example: A hotel management contract details the agreement between the owner of a hotel and its operating company.
8. Real estate investment trusts (REITs) – def: A REIT is a type of security that invests in real estate through propertyor mortgages and often trades on major exchanges like a stock. My example: REITs have become available in many countries outside the United States on every continent on Earth.
9. Referral associations – My example: Hotels and motels within a referral association generally share some sort of centralized reservation system and common image such as a logo or advertising
10. Vacation ownership-My example: vacation ownership benefit for hotel and consumers. Because hotel collected the money they need and consumers save a lot of money.

Chapter 2 Summary:
This chapter has a lot of important information in regards to how difficult (in terms of money) opening a hotel can be. There is a lot of work that has to go into opening a hotel, and investors have to make sure that they are getting some profit by analyzing feasibly studies. The chapter talks about how franchising can be risky for business owners, and directly outlines the pros and cons. The chapter also talks about how hotels are classified. Such examples include but are not limited to convention hotels, economy/budget hotels, boutique hotels, and casino hotels. Whilst diversity amongst hotels existed, there are some hotels that offer unique services and have often bizarre characteristics when you stay at one. The chapter also describes a brief description about how some hotels are as successful as they are now.

1. Capital intensive: Something requiring a lot of capital.
My example: A hotel requires a lot of sources to build, like money, space, and time.

2. Fair return on investment: a reasonable return for the amount invested.
My example: The profit made from putting in a certain amount of money to open up the hotel.

3. Feasibility study: examines the market areas demand and supply, including any potential or real competition in the pipeline.
My example: A study that examines the how well shakeshack will do in a certain area, which outlines the main competitors such as Bareburger.

4. Direct economic impact: The impact that comes from just the amount of moneu generated simply by staying at a hotel.
My example: The amount of money Holiday Inn charges would affect the prices around where its located.

5. Indirect economic impact: The long term impact caused by ripple effects.
My example: Holiday inn affects the prices of its competitors.

6. Franchising: concept that allows a company to expand more rapidly by using other peoples money than if it had to acquire its own financing.
My example: Mcdonald’s selling the rights to the restaurant, and begins to expand overseas internationally whilst still profiting the owners of the brand.

7. Management contracts: a written agreement between an owner and an operator of a hotel or motor inn by which the owner employs the operator as an agent (employee) to assume full responsibility for operating and managing a property.
My example: A contract a manager has to sign when employed that states that he/she is responsible for the operations of the hotel.

8. Real estate investment trusts: A method that enables small investors to combine their funds and enables small investors to combine their funds and protects them from the double taxations levies against an ordinary corporations or trust; designed to facilitate investments in real estate in much the same way a mutual fund facilitates investment in securities.

9. Referral associations: associations that refer guests to other participating members.
My example: Getting discounts to a restaurant if you work or stay at a specific hotel.

10. Vacation ownership: Offers consumers the opportunity to purchase fully furnished vacation accommodations in a variety of forms, such as weekly intervals or points in a point based systems, for a percentage of the cost of full ownerships.

Chapter Summary

Chapter two explains the many different aspects of the hotel business.  It describes hotel ownership and development. You learn about franchising, management contracts, referral associations, the economic impact of hotels, the different classifications of hotels and vacation ownership.

Additionally, it provides you with the names of some of the most prestigious and unusual hotels.  Talks about the future of tourism and it’s expansion often in combination with airlines with the goal of improving the economic conditions in developing countries.

 Key Terms and Concepts

1. Capital Intensive – My example: Years ago my father wanted to start a new business by opening a new gas station.  Because it was a  capital intensive business and required large amounts of expensive equipments and money; he couldn’t do it.

2. Fair Return on Investment – My example: My friend Lucy is a baker that works from her home, and receives good financial returns every time she sells a cake.

3. Feasibility Study – My example: If I win the Mega Millions Jackpot this week; I will hire project managers to complete studies to determine if my proposed ventures will be profitable as well as what risks I will encounter.

4. Direct Economic Impact – My example: The recent visit of Pope Francisco to New York City had a direct economic impact, based on visitors and organizers.

5. Indirect Economic Impact – My example: The Budget Manager at the Caesars Palace in Atlantic City, reports quarterly the expenses related to employment for the hotel, and the money spent by the hotel in items to service the guests.

6. Franchising – My example: I am reviewing the necessary information to franchise a White Castle Restaurant in Boston, MA.

7. Management Contracts – My example: Donald Trump has management contracts for his hotels, resorts and casinos.

8. Real Estate Investment Trust (REITs) – My example: All my classmates for HMGT 1101 pooled to buy a hotel and take advantage of the offered benefits under the reits.

9. Referral Associations – My example: In an effort to improve the overall occupancy of the hotel; the owner joins a referral association.

10. Vacation Ownership – My example: Many people that I know purchased vacation ownership, the first time they visit Orlando, FL or Cancun, Mexico.

Christine Delva

HMGT 1101

Prof. Duchamp

Oct. 5^th, 2015

Chapter 2

There are different aspects when it comes to Hotel Business. In this chapter it explains the pros & cons of owning a hotel throughout the world. You must have the acknowledgement of franchising and management operation when it come having your own business. Location plays a major role when staring a business. You have to make sure it where can transportation to their destination and have activities such restaurant or store to visit. You have considered the type of service you offered and price must attract to the people eyes. Hotels should have many different amenities such as spa, business center or baby-sitting and etc. can help your business grow as well. Today world owning a hotel business is very competitive and some hotels are franchise under other company just to have a connection in order to grow their own business.

1). Capital Intensive (Example) = The Tempt Agency made a capital intensive decision opening up a contract with New York City Housing Authority to provide job opportunity to the people.

2). Fair Return on Investment (Example) = Jude has a radio station, the business is going well. He decided one year anniversary for business going well. From the event he makes triple the investment from when he just started his business.

3). Feasibility Study (Example) = When a business is starting up, a company have and must do feasibility study to see whether if there business will grow and have a great success.

4). Direct Economic Impact (Example) = If you make more money, you spend more money. Christmas time people get their bonus from work which causes them to spend more money which helps other business to grow.

5). Indirect Economic Impact ( Example) = All general managers manages all the money that comes in the hotel, making sure all the money are spent properly especially starting from the wages or salaries of the staff workers.

6). Franchising (Example) = Subways offers franchising for people who wants to start their own Subway business but would have to meet their qualification.

7). Management Contract (Example) = Mrs. English earn and now has her management contract so her job prompts her to handle all the responsibilities for the operating and managing the hotel property thoroughly.

8). Referral Associations (Example) = Tamara has contract with a franchiser for her beauty salon. But thanks to her brother who has a deal with referral association, he made switch to another franchiser at lower cost to help her business.

9). Real Estate Investment Trust= (Example) = Marriot are protect under real estate investment trust ever since they purchase it and doesn’t have to bother with double taxation from false investors or investments.

10). Vacation Ownership (Example) = My uncle is a frequently flyer with many airlines, so he sign up to become their value customer(VIP) and because of that he gains points, free flights and other things from these airlines.

Hello, I am Carlos Amaro. I am a young adult attempting to find my place in the of world productive self-sufficient individuals. This noble pursuit has led me to choose hospitality management as my new line of academic focus. For the sake of transparency I will admit that I have not had the most illustrious record of success and achievement with respect to my tertiary education. I floundered for a few years in a directionless malaise of liberal arts courses, and despite me graduating from high school at the age of seventeen I now stand at the ripe old age of twenty-one without a degree. After giving some significant thought to how tedious and ultimately harmful my lackadaisical mediocrity was for my future, I decided that I should invest my energy into major that had potential for future employability. I was looking for a major that would confer highly transferable skills. Unsurprisingly, these stipulations led me into the obvious direction of hospitality management.

In all honesty I principally considered hospitality management because the reasonably priced college I am currently attending has a fairly good reputation with respect to that field of study. Initially,  I had the mindset that if I’m not going to endure the arduous process of transferring schools then I might as well try what is probably the most worthwhile- that also doesn’t require too much math- program that my school has to offer. Even though my previously mention motivations might sound rather utilitarian, I must also say that I partially considered  the major due to my deep fascination with geography, global current affairs  and all things indicative of refinement and luxury. To me the hospitality industry provided a unique nexus where all these interest regularly collide. Well before even considering the major I was always interested in reading about innovations in molecular gastronomy or the spending habits of Brazilian tourist for example.  I didn’t know until fairly recently that there was a whole industry that could allow me to indulge in all those varied interest that I have. Ultimately, It was this realization along with the general practicality of it all that made me decide to change my major and vigorously pursue the field of hospitality.

In addition, the hospitality industry seems promising because genuinely feel that it can lead to an opportune and meaningful career. I find this to be very important. I personally do not have much employment experience. My first foray into the world of working adults was in a little known company called Green Mountain Energy. Green Mountain Energy is a renewable energy supplier founded in Vermont but headquartered in Texas, and they claim to produce all their energy from wind and/or solar energy. I worked for them for about eight months starting last November. I was but a mere lowly commission based salesman. I was tasked with the odious duty of stopping people in or in front of specified retail locations and determining whether they were eligible to sign up, and if so, persuading them to sign up. To a lot of my colleagues this was fulfilling work. They got make money on their own time and have the satisfaction of knowing they were helping save the environment. While i did agree it was a noble cause, I was just absolutely not cut out for it. I barely made any money and only worked sparingly. It was honestly a terrible experience. All I can remember is the frigid weather I had to suffer through. Ultimately, I was let go after about eight months due to low performance. That’s why, given all its potential, I feel the hospitality industry is a route to a fulfilling job where I’ll never have to worry about inclement weather causing me financial distress. At this point I am not sure where I’ll end up. I have authentic interest in both front of house and heart of house careers, and as of now I am enthusiastically exploring my options.

In the first chapter of “Introduction to Hospitality” we are introduced to the basic idea of what hospitality industry is. It begins with historical foundations of the concept of hospitality as it was forged in Antiquity and medieval and early modern Europe. It goes on to discuss the general characteristics of the modern day hospitality industry. These include the vehement emphasis on guest satisfaction, its predisposition round-the-clock service, and vast amount of time and attentiveness those in the industry must devote in order to be even satisfactory. Furthermore, the chapter details the unique qualities of the products that the industry provides such as their inherent intangibility and daily perishability. It later goes on to delineate the various careers within in hospitality that one can take part in. These include but are not limited to restaurant ownership, hotel management and food and beverage preparation. In conclusion, the chapter encapsulates the keys to success in the industry with its reiteration and elaboration on hospitality’s intense commitment to service along with a stringent requirement of philosophical vision.

                  Key Terms

1. Corporate philosophy- Textbook def: The core beliefs that drive a company’s basic organizational structure. My example: A staple of Disney’s corporate philosophy is its commitment to create an exceptional experience for every individual who enters the gates of one of their properties.

2. Empowerment- Textbook def: The act of giving employees the authority, tools, and information they need to do their jobs with greater autonomy. My example: Those involved in housekeeping are empowered when they are allowed to use their own discretion when executing room maintenance.

3. Font of the house- Textbook def: Comprises all areas with which guest come in contact, and also refers to the employees who staff these areas. My example: The lobby at the entrance of a hotel is a prime example of front-of-the-house.

4. Goal- Textbook def: a specific result to be achieved; the end result of a plan. My example:  My current goal in attending City Tech is to attain a bachelor’s degree in hospitality management.

5. Guest satisfaction- Textbook def: The desired outcome of hospitality services. My example: A hotel has achieved guest satisfaction if they acquire consistently loyal patronage.

6. heart of the house- Textbook def: The back of the house. The kitchen of a restaurant is a prime example of the heart-of-the-house.

7. Hospitality- Textbook def: 1. A cordial and generous reception of guests. 2. A wide range of businesses, each of which is dedicated to the service of people away from home. My example: It’s an honor for any hotel to be the first thing that comes to mind when a person thinks of the word hospitality.

8. Inseparability- Textbook def: The interdependence of hospitality services offered. My example:  The fact that a guest requests can shape a chef’s execution of a meal is a display of the inseparability of key processes in the restaurant business.

9. Intangible- Textbook def; Something that cannot be touched. My example: Light is intangible.

10. Nation Restaurant Association- Textbook def: The association representing restaurant owners and the restaurant industry. My example; The National Restaurant Association actively lobbies to keep the wages of tipped employees below that of the Federally mandated minimum wage.

11. Perishability- Textbook def: The limited lifetime of hospitality products; for example , last night’s vacant hotel room cannot be sold today. My example: The seats in a restaurant are perishable on a daily basis.

12. Total quality management (TQM)- Textbook def: A managerial approach that integrates all of the functions and related processes of a business such that they are all aimed at maximizing guest satisfaction through ongoing improvement. My example: Regular onsite corporate inspections are an integral part of total quality management.

13. Tourism- Textbook def: Travel for recreation or the promotion and arrangement of such travel. My example: Thailand is global hotspot for international tourism.

14.  Sustainability- Textbook def: The ability to achieve continuing economic prosperity while protecting the natural resources of the planet and providing a high quality of life for its people and future generations. My example: Recycling is a common sustainable practice.

15. Return on investment- Textbook def: An important financial measure that determines how well management use business assets to produce profit. It measures the efficiency with which financial resources available to a company are employed by management. My example: Every stockholder would ideally like to have a significant return on investment.

In this weeks article, ‘‘Star Wars’: Coming to a Theme Park Near You, The New York Times exposes information on  “Star Wars” theme park attractions, custom jets and a related museums that are being innovated today. The seventh film in the “Star Wars” franchise, “Star Wars: The Force Awakens,” will release this December, and so far, Disney announced that it will build “Star Wars”-themed areas at two of its parks, Disneyland in Anaheim, Calif., and Disney’s Hollywood Studios at Walt Disney World Resort in Orlando, Fla. The Japanese airline, ANA, will launch three planes which will internally and externally mimic a Star War character, R2D2. The  Lucas Museum of Narrative Art will soon be built in Chicago and will expose cinematic and beautiful art reflecting the Star Wars series.

I believe that the innovation of these ideas will result in large profits for owners and investors. Star Wars originated in 1977, and according to wikipedia, it’s franchise is worth over 30 billion dollars. Not only will fans of the new movie “Star Wars:The Force Awakens,” attend these major attractions, but Star War fans from the 90’s (when the first seasons began) will be interested in attending as well.

In this weeks travel section, the  New York Times published the article,  ‘Chef Jose Andres giving and getting back in Haiti’, which talks about a 46 year old, chef and owner of  21 restaurants, Jose Andres, providing and increasing stability for the Haitian civilization. Ever since the earthquake occurred in 2010, Mr.Andres has been exploring Haiti and is now host of a one hour special PBS show, “Undiscovered: Haiti with Jose Andres.” With this show, Mr. Andres is aiming to  increase international awareness and make people view the island of Haiti as a place to explore and tour in, instead of viewing it as a place where there’s immense poverty and damage due to the earthquake. Mr. Andres established a non for profit association, “World Central Kitchen,” which teaches Haitians smart hunger solutions such as, culinary techniques to feed themselves, and ways to preserve forest, farming, and fishing industries.

I’m inspired by Mr. Andres because what he’s achieving is what my dream consists of, and that is,  providing for the needy and feeding the hungry. I’m ecstatic on how Mr. Andres uses his culinary experience to open a non for profit just to teach others about food and culinary arts.His ambition to benefit Haiti will raise awareness and hopefully the island of Haiti can be viewed as a beautiful place to visit instead of the place where the earthquake in 2010 devastated all.

Corporate philosophy : The core beliefs that drive a company’s basic organizational structure.
– Many business owners implement corporate philosophy within their framework.

Empowerment : The act of giving employees the authority, tools, and information they need to do theirs jobs with greater autonomy
– the business owner can can authorize certain people to have empowerment over others .; Manager

Front of the house : Comprises all areas with which guests come in contact, including the lobby , corridors, elevators , guest rooms, restaurants and bars, meeting rooms and restrooms. Also refers to employees who staff these areas.
– most hotel guest people meet at certain places called the front of the house .

Goal : A specific result to be achieved ; end result of a plan.
– A goal for business owners is to come up with alerting strategies and other programs .

Guest satisfaction : the desired outcome of hospitality services.
– Guest satisfaction is one of the first priority of restaurants .

Heart of the house : The back of the house .
– most hotel room windows are faced at the heart of the house .

Hospitality : The cordial and generous reception of guests .
– the business owner showed excess hospitality and made the guests feel like home .

Inseparability : The interdependence of hospitality services offered.

Intangible : Something that cannot be touched .
– Not everything is intangible ; of the food is not cooked properly it has to be remade .

National restaurant association : The association representing restaurants owners and the restaurant industry.

Perishability: the limited lifetime of hospitality products; for example , last nights vacant hotel room cannot be sold today.

Total quality management : A managerial approach that integrates all of the functions and related processes of a business such they are all aimed at maximizing quest satisfaction through ongoing improvement .

Tourism : travel for recreation or the promotions and arrangement of such travel .

Sustainability : .
the ability to be sustained, supported, upheld, or confirmed

Return of investment : an important financial measure that determines how well management uses business assets to produce profit. It measures the efficiency with which financial resources available to a company are employed by management .

Chef Jose Andres on Giving and Getting Back in Haiti

This week the New York Times published an article about Jose Andres, a Spanish-born chef. He is the owner of 21 restaurants around the country and in Puerto Rico and his interest for the Haiti Island lately, has caught a lot of attention. He is currently hosting a television documentary on the PBS network, in which he explores the Caribbean island of Haiti. In this documentary he also talks about his favorite dishes; especially the dijon-dijon mushroom with chicken, and the adventures that viewers can see about this place as he tries to convince the audience to consider Haiti for getaways by talking about its food and attractions such as the perfect beaches and the waterfalls in the jungles where swimming is ideal. What I found very interesting is that sometimes he likes to explore the island with friends like former President Bill Clinton.

His idea to produce this documentary came after visiting Haiti following the earthquake in 2010. According to the information recorded in an interview, he has expressed his fascinated with Haiti and his goal of changing the island’s negative image after the earthquake and help resolve in addition to its poverty issues by showing its beauty hoping others would visit it too.

Chef Jose Andres created a nonprofit organization which he named “World Central Kitchen”. This organization is intended to help Haitians feed themselves. It educates people about healthy and efficient methods of preparing food. His goal is to teach people about clean cookstoves, using solar and natural gas to preserve forest, farming and fishing industries.

Through this organization he empowered five different communities by giving them smart solutions to hunger. Furthermore, he also has a network of volunteer chefs from the U.S. who visit the communities and teach them lessons on how to cook and feed themselves.

Frankly, before reading this article, I would have never thought about visiting Haiti because the first idea that would probably come to mind is the devastating conditions after the earthquake and its poverty. But upon reading this article, not only do I want to watch his documentary on PBS but I am truly considering Haiti as one of my future travel destinations.