Hospitality and Lodging Organizations Key Terms

Learn the language of the hospitality and tourism industry

Hospitality and tourism are two closely linked industries that focus on creating positive guest experiences. They use some terminology not always recognized or understood by the layperson or even the common business traveler. Some words, such as "tourism" or "hospitality" make sense to anyone, but most people outside the industry can't differentiate between a "tour operator" and a "ground operator." Understanding the terminology of tourism, hospitality and lodging organizations can help you understand the business itself.

 

Tour operator

A tour operator usually offers several different aspects of a trip for one price. For example, a tour operator may sell a package trip that combines airfare, lodging and transportation.
Try: To better understand how a tour operator works, check out the United States Tour Operators Association.

Rack rate

Paying the rack rate for a motel or hotel simply means that you pay the highest rate charged. Rates charged through a travel agent, tour operator or third-party website, such as Expedia or Travelocity, will generally be lower than the rack rate.
Try: For a more comprehensive description of what the phrase "rack rate" means, read what wiseGEEK has to say about it.

MICE

MICE is an acronym for meetings, incentives, conventions and exhibitions. This segment of tourism refers to business travel and trips tailored for business meetings, with some opportunities for recreation.
Try: Visit Best Incentive Tours to glean a deeper understanding of how your business could benefit from MICE tourism.

Hospitality industry

The hospitality industry includes not only food and beverage service but also any business related to travel and tourism. This ranges from chambers of commerce to travel agencies to lodging facilities.
Try: To get a better idea of how to define the hospitality industry, read the industry profile from the U.S. Department of Labor.

Lodging industry

The phrase "lodging industry" refers to any hotelier, chain of hotels, single inn, bed and breakfast, motel or hotel. Any business that offers travelers a room to sleep in is part of the lodging industry.
Try: The American Hotel & Lodging Association offers different types of memberships for different types of lodging. Each of these memberships represents a disparate part of the lodging industry. Bitpipe also has a glossary-style entry defining the lodging industry.

Tour wholesaler or travel wholesaler

Tour and travel wholesalers work in much the same way as a tour operator, but because they buy travel and tours in blocks they pay a lower price and, ostensibly, so do their customers.
Try: To see a tour wholesaler in action and better understand what tour and travel wholesalers do, read up on how South Seas Adventures conducts its wholesale travel business.

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