The Importance of the Hospitality Industry.

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The Importance of the Hospitality Industry.

The importance of the hospitality industry is proven through its market value. Full-service restaurants alone are responsible for generating over 1.2 trillion US dollars (approximately £866 billion) every year .

It’s a hugely influential portion of the market that continues to grow annually, and accounts for 1 in 10 jobs worldwide . Before we dive into some more statistics about this industry and why it’s important, we first look into what exactly the hospitality industry is and the four main sectors that fall under this umbrella term.

The four main hospitality industry sectors

The four main hospitality industry sectors

 Entertainment and recreation

This includes all businesses that are dedicated to providing an entertainment service. It covers everything from sporting events, music concerts, art and performance, museums, theme parks, escape rooms, and cultural events.

The entertainment and recreation sector promotes and provides services that enable people to take part in recreational activities for culture, hobby, and educational purposes. It includes professional and amateur performances and its main purpose is to provide entertainment.

2 Food and beverage (F&B)

The food and beverage industry (F&B) industry is the largest sector within hospitality [3]. This sub-sector includes cafésrestaurantsfood truckspubs and barsfast-food drive-throughs, nightclubs, and tea and coffee shops

F&B businesses can be sit-in, full-service or take-away. They also go beyond the remit of simply providing food, since people often choose out for the entire customer experience, rather than just their meal and drink. 

3 Lodging

Businesses within this sector provide accommodation to guests. The lodging industry covers hotels and guest houses of all star ratings. Also resorts, b&bs, caravan, mobile and static-home sites, AirBnbs, hostels, log cabins, camps, cottages, and chalets. 

The role of an accommodation provider is to provide a safe and secure place for a tourist to stay. Standards differ between different providers and according to different budgets . There might be some crossover into the food and beverage sector in hotels that include a breakfast buffet, hotel restaurant or bar. 

4 Travel & tourism

The fourth sector of hospitality is travel and tourism. It includes: travel agents; cruise liners; logistics companies; sightseeing, bus and walking tours; airlines; taxis and car rental companies. 

The travel and tourism sector provides means of transportation to move travelers from one place to another. It is an essential middle man that supports tourism and business travel. Public transport for all purposes is part of this vital sector. 

Improved customer retention

Happy customers are loyal customers. A great guest experience relies on focus, consideration, and the fulfillment of customers’ needs. This begins with using your initiative and being proactive enough to recognise when a guest might need something, and providing it before they ask.

Any restaurant can provide guests with their food – that’s the basic prerequisite of dining out. It’s the unexpected actions you take that will make your restaurant stand out in the minds of guests. Going above and beyond to make guests feel welcome and cared for is the key to good customer retention and loyalty.

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