Current issues in hospitality and tourism industry

Current issues in hospitality and tourism industry
“Current issues in hospitality and tourism industry”
Research in Business
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Current issues in hospitality and tourism industry
Table of Contents
Introduction.........................................................................................................3
1.1 The human resource management context..........................................3
2.1 The operational context.........................................................................3
3.1 The financial context..............................................................................4
4.1 The product and market context..........................................................4
References............................................................................................................6
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Current issues in hospitality and tourism industry
Introduction
The report aims to focus on the two key issues prevailing in the tourism and
hospitality industry. The two issues are “Having an Agile Workforce” and “Budgetary
Constraints”. The study focuses on four major aspects: The human resource management,
Operational management, financial and the product marketing management.
1.1 The human resource management context
Managing qualified workers and Managing Training Programs with Budgeting:
One of the major challenges faced by the hospitality and tourism sector is attrition of
the labours. It is witnessed that because of low wages and varied shifts, it is challenging to
retain the qualified and skilled workers. The industry has labour turnover of almost more than
5% every year. The work environment globally is not the same in the industry. Local culture
and language affect the recruitment of the people in this industry as communication remains a
key factor in Hospitality. Moreover, skilled employees tend to go to the managerial white
collar job; hence we have less qualified people on the field job in Hospitality which may
hinder the reputation of a brand or a place (Swaleh, 2018).
Training is also considered as one of the most prevailing issue in the industry. As
there is a high turnover, employees are sent to the field for the work before conducting
training. The industry faces losses if they tend to train each and every employee in the
industry due to budgetary constraints. The HR here tends to fill the position first rather than
focusing on the skills of the candidate. Hence, untrained people cannot run the department in
a way that qualified and trained employees can. The HR department worldwide is taking
appropriate actions to minimise the issue that prevails in the industry by giving incentives and
boosting the overall morale (Boum, 201).
2.1 The operational context
Operating costs (Budgeting) and agile methodology of workforce
The operating cost of this industry has been high because they have to be well
equipped with all facilities and luxurious services. It involves million dollars to renovate and
maintain them. The costs are increasing every year or two; revenue may not increase with the
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