The Major Business Niches That Revolves Around The Hospitality Industry

The Major Business Niches That Revolves Around The Hospitality Industry

The Prologue: The Industry of Hospitality

The Hospitality industry has had so many business niches that revolve around it. When talking about hospitality, the first that comes into the mind is Travel and Tourism. According to the Merriam-Webster dictionary, Hospitality means, “the activity or business of providing services to guests in hotels, restaurants, bars, etc.” Therefore, the hospitality industry refers to almost any business that deals with customer contentment and satisfaction and is centered on meeting the leisurely needs of an individual.

Moreover, with its broadness in its scope of this industry, dealing with some aspects of its relevancy are important points to understanding. The hospitality industry for most parts is a comprehensive field unit within the service industry including accommodation, mice, theme parks, transportation, specialized travel, and other fields within the tourism industry. And each hospitality field unit in return will depend on such facilities as direct operations and maintenance, personnel such as management, servers, office workers, kitchen staff, and other human resources.

But with all its broadness in scope, hospitality remains a strong multibillion-dollar industry that mainly depends on the availability of disposable income, relaxation, leisure, and full customer satisfaction. Below we tackle the major segments of the industry, to wit.

1. Accommodation –

Accommodation means staying for a period or a place for food, services, and sleep for a night or a couple of nights. Hotels, hostels, motels, and other allied businesses are great examples of accommodations that provide a place for people to stay overnight. The accommodation provides other market segments such as travelers, special travelers, and other people working in aviation, government, and transportation.

2. Restaurants –

F & B which stands for food & beverages are the biggest sectors of the hospitality industry. This sector is estimated to provide around 50% of all foods and beverages in the whole of the US as of today. F&B consists of businesses that are mainly involved in foods and beverages preparation for immediate consumption on and off the premises. As a restaurant as part of a hotel, the services it provides can boost guest experience by rendering exceptional food and superb customer amenity.

3. Travel and Tourism –

Travel and tourism primarily deal with essential services correlated to moving of people from place to place. It is part of the travel industry in the accommodation of tourists traveling for recreation in buses, cabs, planes, ships, trains, and so on. Leisurely travel is when an individual or a group of people spends money on recreation, food, and lodging while taking a vacation. Additionally, the business traveler is when an individual or a group of people that travels for work and spends money on food and lodging. Likewise, some business travelers also spend on recreation during a business trip.

Lastly, the most important function of tourism is to promote and encourage people to travel. As people spend money on travel for business or leisure, hospitality earns big.

4. MICE –

Photo Source: www.jbnhospitality.com

MICE stands for Meetings, Incentives, Conventions, and Exhibitions. It is a great occasion for building the standing and reputation of a hotel and present it to possibly valuable and long-term business endeavors. Designing and creating a function room at a hotel lets it cater to a full range of various purposes. And visitors will usually translate into more bookings in the hotel itself. Thus, a hotel receives revenues from two sources often for a minimum of effort, dependent on what the event planner needs. Meetings and events are a great way to boost revenue and attract a steady flow of professionals and business travelers to hotels.

5. Recreation -

Recreation per se is an activity any travelers do to rest, relax, and enjoy. The main goal here is to refresh an individual’s body, physically and spiritually. Any business that provides such activities is in the recreation business sector. Businesses that operate facilities or provide services to meet varied cultural, entertainment and recreational interests of their patrons fall in this sector. This sector encompasses companies that are engaged in production, promotions, and participation in live performances, events, or exhibits intended for public viewing. Additionally, establishments that preserve and exhibit objects and sites of historical, cultural, or educational interest also falls in this category. And lastly, organizations that operate facilities and/or provide services that enable patrons to participate in recreational activities or pursue amusement, hobby, and leisure-time interests.

Jose Richard

About Jose Richard P. Archival 

Jose Richard is a Non-voice BPO/KPO Tech writer and editor of JPA Media Network based in Cebu City, Philippines. He writes, blogs, and vlogs about tourism, travel, and the hospitality industry. He is also an Electronics & Communications Engineer by profession with post-graduate studies in the field of master’s in business administration.

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