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 operatorA 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.
Rack ratePaying 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.
MICEMICE 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.
Hospitality industryThe 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.
U.S. Department of Labor.