Florida Hotel Insurance

Understanding the 4 Segments of the Hospitality Industry

2019-02-18

Florida Hotel InsuranceWith its sandy beaches and pleasant weather, Florida is a popular destination for travelers. As a result, the hospitality industry has flourished across the state. However, the term hospitality is a much bigger umbrella than many realize.

People often equate the hospitality industry with travel and hotels, but it’s much more diverse than that. Everything from theme parks to event planning to transportation falls under the umbrella of hospitality. While almost all industries rely on customer service to stay in business, hospitality has the unique position of needing to provide absolute satisfaction for guests. The industry is also reliant on customers having leisure time as well as the income to take advantage of their time away from the office.

This multi-billion dollar industry falls into four distinct categories: Recreation, travel and tourism, lodging, and food and beverages.

  1. Recreation. Businesses focused on recreation provide services aimed at rest, relaxation, and entertainment. They offer the opportunity to unwind and refresh a person’s mental health. Popular examples of recreation include attending a play at the theater or visiting special interest organizations such as zoos, museums, and national parks.
  2. Travel and tourism. This aspect of the hospitality industry focuses on getting people from A to B. It includes traveling by rental cars, buses, planes, trains, and ships. This can be for business or leisure, but millennials are blurring the line with “bleisure”.
  3. Lodging. Logically, people will need a place to stay once they reach their destination. The most common option is a hotel, but bed and breakfasts, hostels, cabins, and campgrounds are popular options as well. Lodging facilities receive visitors for business and leisure reasons and the visits can span from overnight to several weeks depending on the traveler’s situation.
  4. Food and beverages. This is the largest segment of the industry and is responsible for feeding people over half of the meals they consume in the United States. While the most typical type of business in this segment is a sit-down restaurant, it also includes food trucks, breweries, wineries, and snack vendors.

While all businesses that fall under the hospitality umbrella have to focus on providing stellar customer service, they also need to consider the unique risks involved with each segment. For instance, a restaurant is likely much more concerned about fire hazards than a car rental facility is. MMA Florida is well versed in the diverse needs of hospitality businesses in Florida. Contact us to learn how we can help your company.

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