Contemporary Hotel and Tourism Issues

This report examines the contemporary issues in the hotel and tourism industry, focusing on Mustang Nepal destination and High Plains Inn. It discusses market potential, transport development, accommodation development, crisis and risk management, social media influence, and visitor experience development. The report provides insights into the challenges faced by the industry and offers suggestions for sustainable development and improvement.

Contemporary Hotel and Tourism Issues
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Table of Contents
Table of Contents........................................................................................................................................1
Introduction.................................................................................................................................................2
Tourist Market Potential.............................................................................................................................2
Transport Development..............................................................................................................................3
Accommodation Development....................................................................................................................4
Crisis and Risk Management........................................................................................................................5
Social Media Influence................................................................................................................................6
Visitor Experience Development.................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
The report will examine the contemporary issues present throughout the tourism and hotel
industry, that generates great impact on the execution of the business processes by different
organizations. In this paper, Mustang Nepal destination and High Plains Inn of Mustang has been
chosen for understanding the issues and concepts in details. It is located beside Pokhara-
Jomsom-Muktinath Highway in Tukuche of Mustang. It is one of top five hotels with over 500
guestrooms and around 2500 square meters of event and meeting place. The hotel and tourism
industry in Nepal has faced several challenges because of natural disasters, political unrest,
pandemic diseases, terrorism and a shortage of skilled labor. For the growth and validity of the
tourism industry in Nepal, some urgent needs like sustainable development, management of
environment and change in climate, have to be addressed.
With the increasing number of travelers, tourism is described as one of the largest industries in
the world. Some important concepts in the field of contemporary tourism have been analyzed
and described. In this report, the market segment will be identified and analyzed that is
appropriate for High Plains Inn of Mustang to execute its business processes. It will also explain
the effects of the development of transportation for the chosen destination.
The primary motive of this report is to identify the current issues and trends in the development
of accommodation that will generate great impact on High Plains Inn. Social media has a great to
play on the marketing process for the concerned destination. It will be discussed throughout this
report. Moreover, the experience of two visitors will be identified and there will be particular
suggestions to improve the experience for every visitors.
Tourist Market Potential
The feeling of every tourist is different and they like to engage themselves in various activities.
Some of them enjoy to travel during their holidays whereas some enjoy cultural tourism. Market
segmentation benefits lie in the tourist destination which specializes the needs and becomes the
best in catering to a particular group. Enhancing the service quality by various hotels throughput
market of Mustang will help in gaining competitive advantage. Market segmentation can be
either commonsense or data-driven and for the chosen destination, High Plains Inn of Mustang,
data driven segmentation would be most appropriate (Baum et al., 2018). As no pre-selection of

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respondents has taken place so it is a pure form of market segmentation. Some data-driven
segmentation in tourist focuses on technology whereas some on content.
Benefit segmentation leads to valued understandings in research of tourism. Some improvements
are required in benefit segmentation such as careful development that are used in the base of
segmentation, the choice of time should be informed and regular conduction of studies for
accounting dynamics. The methodological approach of data-driven segmentation identifies the
number of standards that are problematic (Ahammad et al., 2018). It is necessary for the users
and data analysts to have awareness regarding the basic principles on which the segmentation
relies. Researchers conduct a test with various techniques which can provide answers to the
research questions.
When an analysis is done on brand image of High Plains Inn of Mustang, the results of the test
will help the researcher to identify the difference in the respondent's way of perceiving a
destination, who are coming from different countries. The parameters and choice of the
segmentation algorithm have a significant impact on the results. The managers and data analysts
should have proper knowledge of the experimental nature of data-driven market segmentation
(Altin et al., 2018). For a successful strategy of market segmentation in line with the tourism
industry, strategy of differentiation and positioning accounts to the strength of High Plains Inn of
Mustang.
Transport Development
While discussing travel and transportation aspects, people have to consider the appropriate ways
and barriers in travel and transportation. It is a matter of fact that tourism cannot prosper without
travel. Transportation is considered as a fundamental part of the tourism industry (dos Santos,
Méxas and Meiriño, 2017). It is because of the enhancement of the transportation services that
the tourism industry has expanded to a great extent. The destination places throughout Mustang
are effectively linked by transportation services. The role of transportation throughout Mustang
has been explained below:
 Accessibility: Transportation will help in bringing tourists to the destination by means of
road or air. Transport will bring the tourists to the destination place by various means.
Transportation plays an important role for the tourist to decide which destination they wish to
travel and by what means (Erdem and Jiang, 2016). The improvement in the modes of

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transportation have increased the convenience of the various destinations for the travelers. It
creates link between tourists and the rest of the world which makes the destination easily
accessible.
 Social Role: The modes of transport will perform social services such as access to
cultural events, health care and welfare which has a social impact on the social services provided
by the High Plains Inn throughout Mustang.
 Economic Growth: A good transportation system will help in attracting investors at
High Plains Inn of Mustang like building the hotel building and other subsidiary services.
 Promotion of Infrastructural Development: The development of infrastructure will be
stimulated by the need for better transportation like building and expansion of airports.
 Tourism Industry Liberalization: In the hospitality industry, many players are seen
entering and breaking the monopoly market.
 Degradation of the Environment: The tourist place will utilize vast area of land to make
the remote areas accessible which resulted in air and land pollution.
 Culture Commercialization: Because of the accessibility of the destination the cultural
rights will be marketed.
Accommodation Development
The quantity and quality of facilities of accommodation are the main factors for tourism
development (Harrigan et al., 2017). Accommodation development should be considered as a
major factor while planning for tourism. Accommodation being the matrix of tourism and for
this proper choice of accommodation is necessary. Various forms of accommodation facilities
and comfortable hotel rooms attract tourists to destination places (Hemmington, Kim and Wang,
2018). A person residing outside the home, when gets similar facilities in a hotel room, that
person is bound to get attached to the hotel. Realizing the influence of accommodation on the
destination place, the accommodation facilities are designed which provides maximum comfort
for the visitors within a reasonable price.
It is crucial for the people belonging to the various economic background to receive proper
accommodation facilities according to the need of the visitors. In recent times, visitors tends to
spend their leisure time and holiday mostly with family and friends, sightseeing various tourist
destinations (Hensens, 2016). The Nepal government has been coordinating the industry of
accommodation by providing concessions to the accommodation providers and stressing on eye-

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catching incentives. This type of plan of government have attracted the tourists and developed
various accommodation types.
Maximum importance is given by the countries to the accommodation sector development,
which has a positive impact on the economy. Some facilities like providing villas both for private
purpose and family holiday purpose, caravan and camping have been proved successful in the
market (Khan and Rahman, 2017). These facilities have been proved beneficial for travelers of
low to medium income groups. Moreover, adding more benefits in the offerings of the hotels as
per current situation and making it user-friendly will help to attract tourists (Khan et al., 2017).
The guest of today are tech-savvy and they are self-sufficient. So these travelers expect
technology equipment of high quality. Travelers of today are expecting an option for healthy
food, space for exercise, yoga, and spa.
Crisis and Risk Management
Crisis and risk of tourism and hotel can be of various categories:
 Economic: It refers to problems such as the rise in the rate of interest, the downturn of
the economy and the fluctuations in currencies.
 Financial: Disputes in agreement of contract between customer and supplier,
overpricing, frauds etc. falls under this category.
 Environmental and Natural Hazards: such as earthquake, flood, tsunami, volcano,
forest fire, damage in the environment by human and natural causes.
 Technological: Poor maintenance can cause airline, train or bus failure, corruption or
theft of data (Kim and Fesenmaier, 2017).
 Emotional: Bad publicity and negative experience from visitors can cause a negative
image in the industry.
 Safety and Health of Occupation: Poor quality of water supply and sanitation,
inadequacy in safety of staffs falls under this category.
 Human: War, terrorism, riots and political instability has a negative impact on the
business
 Damage of Property and Deficiency of Product: Construction and design failure,
mechanical breakdown can cause injury and loss (Longhi and Rochhia, 2018).

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For protecting the customers as well as the business, managing the various risks are important.
Identifying the possible risks and setting up a strategy of risk management has become
imperative. Teaming up with stakeholders and providing proper training to staffs can help in
managing risk. An inventory of possible threats should be made that can help in reducing the
threats to the selected destination in Mustang. Risk analysis maps can out the risk that a
destination encounters (Longhi and Rochhia, 2018). There are various strategies for managing
the risks such as avoidance of risk, risk retaining and reduction of consequences and transfer of
risk (Wardle and Daruwalla, 2017). Involvement of national government and other agencies such
as police, security agencies, disaster management, and administration of tourism should be
included within the strategy (Upadhyay, 2019). An emergency plan should be ready with every
tourism services provider. Communicating clearly and honestly plays an important role in
managing the risk.
Social Media Influence
In the travel and tourism sector, the marketing department has reformed because of rising of the
internet and increasing attractiveness of social channels. Below mentioned are different ways in
which the tourism industry is influenced:
 Transformation of Travel Research: Now a days, travelers do online research about the
holiday destination they want to travel and check the online reviews. People plan their activities
on the basis of the content posted by their peers on social media. People want to get validation
and inspiration from their fellow mates and thus follow various social media sites like Facebook,
Instagram (Manhas and Tukamushaba, 2015). Also, there are some crowd-sourced sites for
review such as MakeMyTrip, TripAdvisor etc.
 Social Sharing Rise: Social media has facilitated people to share their travel experience
with a wider range of audience which inspires budding guests. High Plains Inn of Mustang have
recently started various campaigns and social contests so as to ensure credit of the social
activities of their guests (van Strien, 2018). For example, for selecting the wedding venues
instead of using professional photographs they have used the wedding photos of their guests.
 Enhancement of Services Provided to Customers: Customer satisfaction and services
have been shifted because of social media influence. To provide necessary help to customers
who are either confused or unsatisfied, various brands have their presence on social media.

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Genuine and sincere response from people can help in developing a strong reputation among
potential customers (Marco-Lajara et al., 2018). For finding any information about guests, social
media serves as a tool for listening.
 Loyalty Programs Change: Social media has a huge impact on the construction of
loyalty programs of the hotels. The opinions shared by the customers within their networks also
have a great influence (Villi and Koc, 2018). Social media channels these days, allows hashtag
and mention options, which help the hotels in discovering the passionate guests towards them
(McPhail et al., 2015).
Visitor Experience Development
Travel is not only visiting a place but also gathering experiences from that particular place.
A visitor from Australia came to Nepal for the first time and he was recommended High Plains
Inn of Mustang for his accommodation. He shared his experience that the High Plains Inn of
Mustang was very reliable for him because of its location. The hotel was close to the highway
and he enjoyed trekking in the mountains. He was pleased with the services offered at the hotel
and he was very excited describing the entire Mustang as his favorite destination. He was
satisfied with the fact that he had delicious food and good coffee. He said that the lounge is cozy
with fireplace.
Another visitor, who came from Germany to Mustang found nothing special about the hotel
except the natural environment. He claimed the room is very basic and services being ordinary.
He liked the restaurant but according to him, the services were slow.
High Plains Inn of Mustang can attend various workshops that will help in understanding the
experience of visitors and develop ideas that can boost their performance. The Visitor
Experience Development Plan must include local authorities, local tourism stakeholders and
external consultants (Sheehan, Grant and Garavan, 2018). High Plains Inn must focus on the
satisfaction of the customers and pay heed to their problems and accordingly eliminate the causes
of dissatisfaction. The barriers should be removed, in order to enhance the effectiveness and
reliability of the visitors.
Recognizing various challenges, mapping and defining each component of the services, will help
in enhancing the experiences of the customers (Romero and Tejada, 2019). Visitors wishes to get
enriching, memorable and unique experiences from traveling. The hotel must develop products

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that the traveler demands, and they must ensure that the experience of the visitors is marketed
and designed in such a way which helps in excelling over other competitors.
Conclusion
The report had helped in finding out the contemporary issues faced by the hospitality industry
throughout the selected destination which is Mustang, Nepal. Various contemporary issues are
faced by the hospitality industry because of its nature and effect of globalization. These
contemporary issues are having a direct impact on the hotel and tourism industry. As a result, for
these businesses to be successful, these issues must be managed strategically. It is suggested
from the study that the mindset and thinking of High Plains Inn of Mustang are not at a strategic
level rather it is on an operational level. High competition in the hospitality industry affects both
staffs and customers. For making the base of customers those who are happy and satisfied with
the services, it is needed to provide proper training to the staffs at the workplace. Executives are
also required to acquire special skills for the success of the sector. The profitability of the hotel
business depends on the satisfaction of the customers, so this area should be enhanced.
From the above report, it is concluded that the hotel industry and the tourism sector are facing
the crucial challenges while attracting and retaining customers. The factors that are discussed in
this report are potential for the tourist market, development of transportation, the development of
accommodation, the risk, and its management, the influence of social media and the development
of experience of visitors. The Nepal government should take measures in improving the traveling
condition and sector of tourism in Mustang, so as to make the hotel industry a safe place to visit.
Enhancing the security of the travelers can reduce several risks. The traveling cost can be
reduced by the government, by lessening the taxes which makes the services affordable to
normal customers. The development of transportation can play a key role in enhancing the hotel
and tourism business. Social media has a greater influence in today’s world, so social media
services must be enhanced. Development of accommodation is another key factor for
development. Providing and developing facilities that the customers demand is the need of the
hour. Up-to-date and user-friendly services attract customers and it should be offered by various
organizations.

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