Global Environment of Hospitality Industry

Running head: GLOBAL ENVIRONMENT OF HOSPITALITY INDUSTRY
Global Environment of Hospitality Industry
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GLOBAL ENVIRONMENT OF HOSPITALITY INDUSTRY
Introduction
Globalization has influenced all the sectors of the economies across the world, and
hospitality industry is no exception. Similar to any other industry, the dynamics the global hotel
industry has been evolving too. there has been structural shift in the hotel industry caused due to
several factors, such as, changes in the economic, geo-political, socio-cultural and demographic
aspects, combined with rapidly changing technology and disruptions, changing consumer
behavior and increasing market competition (Butters and Hubbard 2019). In the past decade, the
number of travelers has grown significantly, not only for leisure travel, but also for business
purpose. Increase in disposable income of people, increased knowledge about travel destinations
due to easily affordable and accessible devices and internet and highly advanced technology for
checking and booking accommodations all across the world have been influencing the consumer
choices about their stay during vacations or business trips and that has led to increasing
competition in the hotel industry (Kolau Blog 2018). Along with these, changes have been
observed in communication approaches and importance of images of the destinations in
influencing the consumers’ preference and performance of the hotel industry. Thus, the purpose
of this paper is to highlight the influence of the factors, like, changes in the leisure pattern of
the consumers, different approaches to communication and various effects of image on
destinations for global populations to assess the impact on the global hotel industry. It will also
discuss potential measures to mitigate the negative impacts and utilize the positive effects of
these factors to achieve further growth of the global hotel industry.
Discussion
Economic growth and technological advancement have contributed significantly in
growth of tourism industry in the past decade. Through internet, people have access to more

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GLOBAL ENVIRONMENT OF HOSPITALITY INDUSTRY
detailed information about not only the travel destinations all over the world, but also about the
tourism activities, their prices and the accommodation and food facilities. These caused
significant changes in the leisure pattern of the travelers. For example, there is a considerable
rise in the number of adventure seeking travelers, who prefer hiking, trekking, participating in
adventure sports, like, surfing, rafting, scuba diving, paragliding, parasailing, jet-skiing, skating,
mountaineering, and so on (Rantala, Rokenes and Valkonen 2018). Many travelers prefer
backpacking and travel on a low budget. Thus, the global hotel industry has evolved to cater to
not only the high budget travelers, but also for the low budget travelers. There are many
dormitories for low budget backpackers, and low priced motels with only basic amenities and
very basic breakfast options. At the same time, many hotels and resorts now provide packages
for adventure sports along with accommodation for the convenience of the leisure travelers.
Moreover, globalization has led to massive global expansion of the businesses and that has
caused increase in the number of business travelers (Revfine.com 2020). Many business travelers
prefer to combine their business trips with some leisure travel, which has also increased the
growth opportunities for the hotels that are located near any popular tourism destination as well
as the major business hubs, like, New York City, San Francisco, Dubai, London, Paris, Tokyo,
Sydney, Melbourne, Rome, Zurich and many more (Zhang, Seo and Ahn 2019). On one hand,
changes in consumer leisure pattern has increased the growth opportunities for the hotels, and on
the other hand, this has increased competition level massively.
Communication is a very essential factor of success in the hospitality industry. Effective
communication in the service industry helps in establishing a good relationship with the
customers (SiteMinder 2018). Similarly, in the hotel industry, the approaches to communication
has become different based on the advanced technology. Consumers can communicate through