The hospitality industry encompasses multiple service industry sectors, including restaurants, hotels, cruise ships, and other components of the tourism industry. It serves as one of the most prominent job creators in the U.S. and provides a massive economic contribution.
Although hospitality was one of the hardest hit industries during the pandemic, everyone was ready to visit their favorite bars and restaurants and invest in the travel industry once the worst had passed and lockdowns were lifted.
If you are interested in studying hospitality at Johnson & Wales University and want to learn as much as possible, we have created a guide to help.
Let’s learn more about the hospitality sector to supplement your undergraduate degree with current and real-world information.
HOSPITALITY INDUSTRY OVERVIEW
According to the American Hotel & Lodging Association (AHLA) 2024 report entitled “Beyond Recovery,” as well as data from Oxford Economics and STR in an exclusive analysis for AHLA, “Guest spending has recovered on a nominal basis, and U.S. hotel revenue per available room (RevPAR) has reached a nominal high.” The report also states that the labor market has remained strong in the hospitality industry while the unemployment rate stays historically low.
Meanwhile, the food service and catering industries are forecast to reach 1 trillion for the first time in history, per the National Restaurant Association. Despite still recovering from major supply chain struggles due to disruptions accompanying the COVID-19 pandemic, the workforce is expected to grow by 200,000 jobs by the end of 2024 — resulting in total industry employment of 15.7 million.
A BRIEF HISTORY OF THE HOSPITALITY INDUSTRY
Throughout modern times, people have traveled and sought accommodation while en route or once they reach their destinations. Before the 19th century, there were small inns available. But early in the 1800s, inns and other lodgings became increasingly available and accessible to weary travelers on the road. Guests increasingly enjoyed the comfort and luxury factor, which led to the creation of hotels where fluffy pillows and firm mattresses became the norm.
The beginning of the 20th century introduced the era of modern hospitality, when architectural and interior design became as much a part of the experience as turned-down sheets. Hotels became the gold standard of pampering and luxury during travel or even as a destination.
The 21st century has introduced various technologies, such as AI and IoT, to add even more comfort and convenience, while businesses like Airbnb revolutionized the bed and breakfast and homestay experience.
HOSPITALITY INDUSTRY SECTORS
The hospitality industry is broad, covering multiple customer satisfaction-based sectors focused on providing leisure, food, and comfortable accommodation. Once you start exploring this industry, you’ll find multiple subcategories, including lodging, theme parks, transportation, event planning, hostels, and cruise lines. These and other areas that require top customer service often fit into the hospitality industry.
Let’s look closely at each of the four main sectors in this multibillion-dollar industry.
Food and Beverage
The food and beverage industry is large and varied, offering everything from healthy meals, snacks, and lunch-on-the-go, to five-star restaurants and your favorite fast-food stop.
The industry’s supply chain includes food processing, packaging, and distribution, although it is not involved with raw food production, which is a part of the agricultural industry. The types of foods include:
- Fresh foods
- Packaged foods
- Beverages – alcoholic and non-alcoholic
- Food sold at the grocery store for home meal preparation or to serve in restaurants, institutions, or events
Here are some different types of food and beverage businesses:
- Fine dining restaurants
- Fast service restaurants
- Traditional restaurants
- Steak houses
- Mom and pop restaurants
- Bars and pubs
- Bistros
- Cafes
- Food trucks
- Themed restaurants
- Bakeries
- Pizza restaurants
- Vegan/Vegetarian restaurants
- Restaurants in shopping centers or mall food courts
- Catering businesses
Here are some common job titles in the food and beverage industry:
- Chef
- Sous chef
- Food service associate
- Kitchen manager
- Kitchen team leader
- Server
- Front room manager
- Restaurant manager
- Beverage/bar manager
- General manager
- Sales manager
Lodging
Lodging means accommodation, whether in hotels, motels, or hostels. It provides you with a place to sleep while traveling. Lodging businesses market and rent out spaces to leisure, business, budget, and long-term stay travelers and for people who work for the airlines, government, and military.
Here are some examples of lodging businesses:
- Hotels
- Motels
- Hostels
- Vacation rentals
- Boutique hotels
- Airbnbs
- Resorts
- Inns
- Extended stay hotels
- Bed and breakfasts
- Guest houses
- Farm stays
- Camping cabins
Common lodging job titles include:
- Hotel or motel manager
- General manager
- Sales manager
- Purchasing specialist
- Night auditor
- Hotel receptionist
- Concierge
- Spa manager
Recreation
Recreation is an important component of hospitality, offering a fun and exuberant angle to customer service. This sector includes things like concerts, sporting events, and other major entertainment events.
Here are some examples of recreation events in the hospitality industry:
- Stadium and arena events
- Festivals and fairs
- Amusement parks
- Global hotels and resorts
- Sports events
Common recreation job titles include:
- Sports center manager
- Aquatics manager
- Community manager
- Fitness manager
- Athletic director
- Risk management supervisor
- Ticket sales manager
Travel and Tourism
As noted earlier, this vital industry is making a steady comeback in the wake of the pandemic. People are traveling more frequently for business and pleasure, so it’s an excellent field to consider for anyone who wants to travel and help the industry rebound.
Let’s look at some leading and growing travel and tourism businesses:
- Travel agency
- Hotel, motel, hostel, bed, and breakfast
- Taxi, van, and shuttle company
- Vehicle rental
- Online ticketing and reservation business
- Ecotourism company
- Eco-retreat business
- Private security and tour escort firm
- Travel and tourism software applications
- Language translation service
- Luggage delivery business
Job titles you might explore if you want to work in hospitality include:
- Tour guide
- Hotel manager
- Flight attendant
- Water sports leader
- Theme park manger
- Travel consultant
- Souvenir salesperson
- Travel insurance sales agent
- Destination specialist or travel agent
- Travel writer or influencer
- Concierge or visitor information officer
- Pilot
- Cabin crew
- Train or bus driver
- Taxi, lorry, or limousine driver
FUTURE OF THE HOSPITALITY INDUSTRY
The future of the hospitality industry looks promising, with a steady comeback in sight. As people begin to travel more frequently for both business and leisure, there is great potential for growth and innovation within the sector. Job opportunities in travel and tourism are expanding and have almost recovered entirely to the pre-pandemic employment levels.
Technological advancements and changing consumer preferences are shaping the future landscape of the industry. Businesses are adapting to meet the needs of modern travelers, with a focus on sustainability, eco-tourism, and personalized experiences.
Some factors to consider that might affect ongoing recovery and growth include:
- Changed consumer behaviors
- Wellness
- Digitalization
- Consumption and spending
- Remote working
- Sustainability
Even years after the onset of the pandemic, businesses in the hospitality industry are indeed working in a “new normal” paradigm in order to attract a changed populace after lengthy periods of lockdowns and restrictions. It’s not surprising that people’s priorities have shifted to things that provide comfort, balance, time-saving, and sustainability.
Hospitality Industry Outlook and Growth
The hospitality industry is expected to continue its rebound in 2024, with both leisure and business travel continuing to rise. Despite potential economic headwinds, leisure travel demand is expected to remain steady because travelers are prioritizing experiences over other forms of spending. Remote employees are also choosing to take short trips more frequently or extend their business trips into personal vacations. Corporate travel is anticipated to pass the pre-pandemic levels; however, cost is a significant concern, and corporations are looking to be more conservative with their travel budgets.
For travel providers, there is an anticipated increase in the use of artificial intelligence to improve efficiency and personalize traveler experiences.
The hospitality field is dynamic and ever-changing. Here are some of the key trends that are expected to shape the hospitality industry in 2024:
- Increased demand for experiences – There is a driving demand for travelers to have experiences during their stay that are unique and memorable, including activities and tours.
- Focus on sustainability – Travelers are becoming more environmentally conscious and thus looking for hotels and resorts that are committed to sustainability practices. For example, the Europe Hotel in Ireland has its own farm with livestock and produce to be used at their hotel restaurant.
- Rise of technology – Hotel guests are increasingly seeking a more seamless experience at their hotel, and technology can play a central role in improving a guest’s stay. Technology use in hotels can also make hotels more efficient in their operations.
- Demand for personalization – Travelers want personalized experiences that cater to their individual needs and preferences. Personalization may include touches like lighting, room temperature, or whether a guest prefers contactless check-in upon their arrival.
Challenges in the Hospitality Industry
Challenges the hospitality industry face today include dealing with employee turnover, managing increasing labor costs, addressing the rising demand for services, and handling escalating operational costs. Despite projected growth in travel and tourism, businesses must navigate these challenges to successfully recover and thrive in the new normal by:
- Adapting to changed consumer behaviors.
- Integrating wellness offerings into their services.
- Embracing digitalization for enhanced customer experiences.
- Managing shifting patterns in consumption and spending.
- Accommodating remote working needs.
- Prioritizing sustainability to meet evolving expectations.
EMERGING TRENDS IN THE HOSPITALITY INDUSTRY
Here are some examples of changes coming to hospitality:
Artificial Intelligence (AI)
As AI has become increasingly reliable and familiar, hospitality businesses are increasing their adoption and usage of this technology to carry out customer service tasks. Using AI to conduct these tasks is especially important in hotels and resorts, which run on a 24-hour schedule.
Look at the businesses like Airbnb that use AI to their advantage. The success of this homestay lodging service wouldn’t be nearly as attractive if property owners had to visit the site each time a guest arrived. Hotel, motel, and resort owners are hopping on board to reduce overnight staffing costs and let AI do the work.
Sustainability
People are increasingly aware of the toll that rampant waste is having on the planet, and they want to live more sustainably on a daily basis. However, they don’t want to abandon their principles in exchange for a vacation, so they increasingly seek vacations that feature sustainability as a selling point.
Travelers, adventurers, and diners want to engage with hospitality companies that engage in robust and transparent sustainability practices.
Sustainability is essential on a practical front for hospitality businesses since guests frequently want to visit local cultural and natural attractions. It’s a matter of business preservation to ensure that guests will visit sites and see them in pristine condition, how they’ve always imagined them.
If a business focuses on sustainability, it will stand out and likely receive positive written and word-of-mouth reviews; another reason it is a vital practice.
Safety and Hygiene
Although the worst of the pandemic is behind us, variants continue to arise. With that in mind, safety and hygiene should always stand front and center for hospitality businesses to keep customers healthy.
The top hospitality companies continue to practice stringent cleaning and sanitation practices.
Smart Hotels
Smart hotel technology via the Internet of Things (IoT) is exciting and new for guests. IoT offers guests an extremely comfortable, convenient, efficient, and luxurious experience. Some things IoT can assist guests with are controlling the thermostat, adjusting the lights, and calling the front desk from the comfort of their beds, using their TV or another mobile device.
Personalization
Personalization entails tailoring a service, product, or marketing strategy to a specific customer, patron, or guest. It is an essential way to improve the customer experience and answer their needs more effectively and in a shorter time.
WORK OPPORTUNITIES IN THE HOSPITALITY INDUSTRY
The hospitality industry is a vast and dynamic sector that offers a wide range of career paths for individuals with diverse skills and interests, including niche careers in hospitality. Whether you’re passionate about providing exceptional customer service, crafting culinary masterpieces, or managing hotel operations, there are a variety of opportunities in hospitality available.
Front of House Roles
- Hotel Receptionist – A hotel receptionist is the very first person guests experience upon arrival. Their responsibilities may include handling check-ins, check-outs, and helping with any questions or concerns that guests may have.
- Concierge – A concierge offers tailored advice and services for guests, from making restaurant reservations to arranging transportation and suggesting the best local spots to visit.
- Restaurant Server/Waiter/Waitress – Responsible for leading the guests through their dining experience, restaurant servers take orders, deliver food and beverages, and ensure an overall positive dining experience for guests.
- Bartender – Bartenders prepare and serve alcoholic and non-alcoholic drinks, often with a focus on creating unique cocktails and providing a lively atmosphere.
Back of House Roles
- Chef/Cook – Chefs prepare and cook food, often specializing in a particular cuisine or style of cooking.
- Sous Chef – Sous chefs assist the head chef in managing the kitchen and overseeing food preparation.
- Pastry Chef – These chefs specialize in creating desserts, pastries, and other baked goods.
- Kitchen Porter – Porters maintain the cleanliness and hygiene of the kitchen, including washing dishes and cleaning equipment.
Management and Administrative Roles
- Hotel Manager – Overseeing the daily operations of a hotel, managers ensure guest satisfaction and profitability.
- Restaurant Manager – These managers oversee the front-of-house and back-of-house operations of a restaurant, including staffing, inventory, and customer service.
- Event Planner – These planners organize and coordinate events such as weddings, conferences, and parties.
- Sales and Marketing Manager – These managers develop and implement marketing strategies to attract customers and increase revenue.
Emerging Opportunities in Hospitality
The evolving landscape of the hospitality industry is creating new and exciting career paths. With the rise of technology and changing consumer preferences, such roles may include:
- Revenue Manager – These professionals use data analysis to optimize pricing and maximize revenue.
- Social Media Manager – These managers handle the online presence of a hospitality business, engaging with customers and promoting the brand.
- Sustainability Coordinator – These individuals develop and implement sustainable practices to reduce the environmental impact of a hospitality business.
HOSPITALITY DEGREE OPTIONS
If you decide a career in hospitality is right for you, there are several undergraduate and graduate degree options you could choose from.
Hospitality Management Degrees
If you’re looking to develop your career in the hospitality industry, a Bachelor’s degree in Hospitality Management may be the perfect program for you.
If you’ve already earned your bachelor’s degree and are looking to advance your hospitality career, you could earn your Master’s degree in Hospitality Management or an MBA in Hospitality Management.
Food & Beverage Hospitality Degrees
If you’d like to pursue a career in the food & beverage sector of the hospitality industry, there are a few degree options you could choose from.
If you’re interested in a management career in the food and beverage industry, consider earning your Bachelor’s degree in Culinary Arts & Food Service Management.
If you’re interested in starting your own food and beverage business — such as opening a restaurant, owning a bar, or starting a food truck — a Bachelor’s degree in Food & Beverage Entrepreneurship is a great choice.
Another option in the food and beverage sector would be to pursue a career in food safety compliance by earning a Bachelor’s degree in Food Industry Compliance Management. This degree program prepares students for certifications such as the National Restaurant Association Foodservice Management Professional (FMP), U.S. Food and Drug Administration Food Defense Awareness, OSHA Outreach, National Restaurant Association ManageFirst, and TAPSeries.
If you’d like to pursue a leadership position in the food and beverage sector, consider earning an MBA in International Beverage Management. Through this program, you’ll learn about beverage products and production, beverage management, beverage distribution, current, new, and emerging markets, consumers, and the value chain for global beverages.
Lodging Hospitality Degrees
If you aspire to manage a hotel or resort, or oversee a hospitality chain at the corporate level, you can customize your degree program through a number of specializations with JWU’s bachelor’s in hospitality management.
Recreation
If you’re interested in event management, earning a Bachelor’s degree in Sports, Entertainment, Event – Management can set you up to succeed in this exciting hospitality sector.
This program allows you to specialize your studies in major elective classes that will directly impact your chosen career path, such as professional sports management; event planning within the corporate, nonprofit, and hospitality industry; sports and entertainment marketing; tournament management; concert and event production; and more.
PREPARE FOR YOUR FUTURE IN THE HOSPITALITY INDUSTRY
As a global leader in hospitality education, Johnson & Wales University offers multiple hospitality degrees designed to help you build a career that can take you wherever you want to go.
Across our hospitality programs, our alumni work for Marriott International, Inc., Aramark Corporation, The Walt Disney Company, Hyatt Hotels Corporation, Sodexo, Compass Group, and many others.*
For more information about completing your degree online or on-campus, complete the Request Info form, call 855-JWU-1881, or email [email protected].
*Source: Lightcast™ Analyst 2022