HTM400 Chapter 4
HTM400 Chapter 4
HTM400 Chapter 4
Airlines
Accessibility to Air Travel. With the introduction of jumbo jets and the low cost
carriers into the market , large number of people could travel, quickly and
efficiently. (no destination is “off- limits for the meeting industry)
Deregulation of the airlines stimulated price wars between airlines & airfares
plummeted, making travel affordable.
Airlines began catering specifically to the meeting business by offering
package deal & negotiated fares.
Conference Center
Conference centers has been greatly influenced by growth of the
meetings business.
Today, conference centers are resort-oriented with recreational &
physical exercise facilities available, to cater to broader audiences
Increased Use of Technology
Technological advancements have made meetings, conventions &
exposition more interesting to attend & easier to arrange.
Through Videoconferencing, Teleconferencing Computers
Meeting Planners
Plans events and also assist with execution by organizing details
that link the client with the facility to ensure meeting, convention or
exposition go smoothly
Ground Suppliers
Are vendors who handle details of tours, transportation,
sightseeing, banquets and hotel registration.
Now, ground suppliers are also program planners (planning activities
for spouses , motivational speakers
Opportunities in the meeting industry
Conference &
Corporate Exhibition Hotels and Resorts,
Travel Centers including their
Agencies sales divisions
Convention, Event
MICE Marketplace offer
& Exhibition Destination
various job opportunities
Organizers Management
Companies
Conventions Visitors
Bureaus & Trade
Associations Incentive Houses
- Make Floor
Work with Exhibitors Plans
& Lecturers - Arrange for
Security
- Arrange Troubleshoot unforeseen
Plan Programs for problems / Operational
Participants Transportaion
Issues / Assist with
Resolution
Organize Guest
Registration /
Name Tags & Review Vendor
Handouts Contracts
Secure Final
Arrange for Food, payments for
Beverages, Services
• .
Hospitality and Sports Management
* Public Relations, Ticket Sales & Marketing, Travel planning, Logistics,
Sports Governance & Information
* Most significant component of Sport Mgt. is facility management
* Responsibility include: scheduling, supervision, payroll, reporting,
budget development etc
6.2 Recreation, Theme Park and Overview
Clubs
• Recreation and leisure have long
been a part of society and are
becoming increasingly important.
• Many people, especially middle-
aged and older individual have
sufficient discretionary income to
afford club memberships, and
cruises.
• This chapter view destinations
that provide opportunities for
social & cultural, recreational,
adventure and health & wellness
pursuits.
Managing Leisure Segments of the
Hospitality Industry
• A widely held view is that the increased pace of modern living has meant
more work and less play.
When people expect more activity in less time, they are more likely to
patronize recreational facilities that pack lots of experiences within the
short time frame – Example: An amusement park gives patrons a beeper
every time they enter)
Throughout the history of the world, gambling has gone through stages of
legalization and regulation. The cycle begins with a government needing money.
Governments do not want to increase taxes because the people are already outraged
about that prospect.
Politicians see gambling dollars as a quick, easy way to make money.
Once the decision was approved to allow casinos in the jurisdiction, construction
began. Money quickly flowed into economy, stimulating growth and taxes when
casinos were allowed in the jurisdiction.
Casinos then enter the growth stage of the product life cycle and life is good.
Casinos make money and enter the maturity stage.
However, inevitably a little trouble begins to enter in term of social problems such
as addiction and crime. The public outcry increases as social problem grow.
Finally, governments are forced to regulate casinos to appease the problem.
Asian Casino History
Currently, Asia is booming with mega-casino projects. According to the
International Gaming and Wagering Business (IGWB) trade publication, in August
2007, the Venetian Macao opened with 16000 employees, which is almost 5 percent
of the total labor force.
In Singapore, Resorts World at Sentosa, the Singapore recreation island, is in the
process of building a complex of 6 hotels, Southeast Asia’s first Universal Studio
theme park, and the world’s largest oceanarium.
The Las Vegas Sands is building another mega-resort in Singapore, located in the
city-state’s business strict.
In Vietnam, Pearl of Asia Development Corp. is building a $9 billion luxury
entertainment complex that will include sports facilities, a concert area, a world-
class health center, parks, gardens, & a world-class high-stakes casino.
Indonesia is another country rethinking its decision to forbid casinos.
Australia has been developing gaming at a fast pace, and some say the country’s
industry is now in its maturation stage.
The 2008 economic uncertainty felt world-wide may significantly affect on-going
global economic activity. Only those enterprises capable of weathering the storm
will survive until the next economic cycle occurs.
Malaysia
Opening in 1971 at the same time as the Genting Resort, the Casino de
GENTING offered thirty tables with games like Blackjack, Tai Sai, Roulette and
French Boule, as well as a selection of “one-armed-bandits” – the
characteristic lever-powered slot machines.
The casino was then located where Theme Park hotel stands today.
Malaysia’s one and only gaming venue, the Casino de GENTING is open
everyday of the year. Divided into a variety of themed sections, the Casino de
GENTING offers something for everyone, be it the lights and glitter of
Hollywood or the excitement and luxury of elite gaming at the Monte Carlo.
On the European history side, gambling was always associated with predictions and
the aristocracy.
In Greek mythology, when a person wanted to make a difficult decision, he or she
went to the oracle to ask for guidance.
In Rome, gambling occurred more often at the mineral spas and baths where people
soaked in the waters to be healed.
Betting on cards and dice was common, readily available - helped to kill time away.
The rich, who did not have to work, were constantly looking for distractions from
the boredom of their lives.
As a result, gambling developed as a pastime for the aristocracy.
However, the religious authorities took a dim view of such distractions.
In France, theater always present dramas about gambler who ruins his family.
As a result of the public pressure, France signed a decree banning gambling and
casinos on the night of December 31, 1837.
At about the same time, there were 24 casinos in Germany. A similar wave of
prohibitions and formal notices followed, and Germans were required to close their
casinos in 1848.
However, a year later, the governors of Baden authorized the reopening of the
town’s gaming rooms because its economic development depended on the money.
As a result, Casino Baden -Baden continued to prosper.
Today casino Baden-Baden in western Germany is known as one of the most
beautiful and opulent casinos in the world.
Francois Blanc made his fortune owning a series of German casinos. He was so
successful at his trade that in the early 1860s, Charles III of Monaco went to him to
work out a deal.
Charles III was in financial difficulties and wanted to create a casino monopoly in
Monaco, so he made a deal with Francois Blanc to set up a casino in a new town,
Monte Carlo.
The casino association took full responsibility for the infrastructure of the town and,
in exchange, Monaco citizens were forbidden to gamble.
Francois maintained his golden touch at running casinos and Monte Carlo became
the place for the rich and famous to party and gamble.
In the Netherlands, the state-owned monopoly Holland casinos is finding that while
it has more visitors, its guests are spending less money per visit.
Russia, once the world’s fastest-growing casino market, is going through unstable
political times, and as a result gaming companies there are looking to expand into
Western and Eastern Europe.
Chile has entered the list of countries allowing gambling, with 8 projects
opening in 2008 another 6 slated to open in 2009.
Venezuela has been cracking down on illegal operations by imposing
stricter license renewal rules and suspending new license distributions
until 2011.
Regulations promulgated in Ecuador in 2002 stipulated that casinos
could only operate in hotels; however, new regulations promulgated in
2004 did not include this mandate.
As of this writing the Gran Casino Guayaquil was under construction and
on track for an October 2008 opening, but no one is sure whether the
casino is legal.
Argentina’s Cordoba Province is shutting down its unprofitable
government-owned casino in Alta Gracia.
North American Casino History
By 1988, most of the Native American population in the United States was in a state
of poverty. Technically, they were citizens of sovereign nations within the American
nation.
That meant they did not pay taxes, but neither did they get any assistance from the
state governments of the states where they resided.
In 1988, the Indian Gaming Regulatory Act changed everything. It allowed gaming
on Indian reservations, provided that each tribe negotiated in good faith with the
relevant state government to create a compact.
Foxwoods Casino in Ledyard, Connecticut was the first native American casino to
open under the new law.
Led by one of the few Native Americans to earn a doctorate in business, Foxwoods
became one of the most successful and most profitably run casinos in the world.
.
Riverboat Casino History
The last type of gambling in America is the Riverboats.
In 1812, the first steamboat “New Orleans”, made its way up the Mississippi River.
By 1860, there were over 700 steamboats making their way up and down the river.
Since Mississippi river was the main route to get plantation products to the docks,
the boats were packed with all kinds of travelers.
However, there was not much to do on board other than gamble, so many cheats as
well as businessmen frequented the tables.
When Gold was struck in California, trains became a new & faster mode of
transportation and the Civil War made Riverboats an unsafe way to travel- so the
riverboat use faded.
In 980s, economic hardship struck the Midwest, unemployment was high, state
governments needed capital and new revenue sources and state residents needed
jobs. - casinos were identified as the way to revitalize the economy.
Therefore, in 1989, the first riverboat casino began to ply the Mississippi River,
operated by the state of Iowa. Within 4 years, states of Illinois, Mississippi,
Louisiana, Missouri & Indiana approved riverboat casinos – as a way to contain
gambling in a small area, while providing economic benefit
¥ In America, the benefits from casinos have been impressive. There are
467 commercial casinos in 12 states plus 424 Native American
casinos in 29 states.
¥ As the state governments had hoped, the casinos earned $34.13 billion
in gross gaming revenues in 2007, which was a 5.3 percent increase
over the previous year.
¥ The largest growth in gross gaming revenues occurred in Iowa (16.2
percent) and Mississippi (12.5 percent).
¥ Casinos are a unique industry because their reputation has been less
than socially acceptable, yet despite this perception, the casino
business has grown rapidly.
Major Players
in America
• The Casino Industry came of age in 2005, when
several casino companies merged, creating three
of the largest gaming companies:
– Harrah’s Entertainment (including Caesar’s)
– MGM Mirage ( incorporating Mandalay Bay Group)
– Penn National Gaming (merged with Argosy)
Harrah’s Entertainment
• Started in 1937, when William F. Harrah opened
his first Bingo Parlor in Reno, Nevada
• In 1971, Harrah’s stock was offered to the
public.
• In 1972, Harrah was listed on the American Stock
Exchange (first gaming corporation to be listed
on NY Stock Exchange)
• In 2005, Harrah’s Entertainment completed a
$9.3 billion merger with Caesar’s (largest merger
in gaming history)
Example of the
Casino
MGM Mirage
• MGM Mirage is diversified company with
interest in gaming, hospitality & entertainment
VICE PRESIDENT
• The vice president has overall responsibility for all gambling departments.
• They set strategy for each department and has a great deal of influence in
the organization & responsible for all the major revenue-generating
activities of the business
CASINO MANAGER