Hospitality and Tourism Challenges

This assignment delves into the multifaceted challenges confronting the hospitality and tourism sector. It analyzes issues related to labor shortages, intense competition, evolving customer expectations, escalating costs, and technological advancements. The document examines the impact of these factors on operational efficiency, human resource management, financial viability, and product-market dynamics within the industry.

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HOSPITALITY AND TOURISM
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INSTITUTION
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The operational context (200 words)
The labor shortage is the most practical issue in the hospitality and tourism industry. Mostly the
labor force expansion is not limited by the capital only but also by the human resources. There
are a problem and a significant challenge of attracting and also retaining the qualified workers in
the whole world (Chon, 2015, p. 361). This is due to the failure address the workers to
satisfaction, demography, the low wage levels, reputation for too long hours and little pays as the
contribution factors cite them.
There is the high and increased level of competition in the hospitality and tourism management
because there are too many available hospitality rooms as compared to some tourists who want
to rent them hence race. This results in the cutting of prices to attract more tourists; this also
reduces the profits earned (Xiang et al., 2017, p. 60). This tight competition within the hospitality
and tourism operators in the shrinking market has brought down the rent of hospitality rooms
across the whole world hence a lot of losses. This has led to increased innovation and creativity
in the hospitality and tourism operations while making decisions.
The human resource context (200 words)
Staff recruitment and selection is an essential thing in hospitality and tourism management. This
enables the industry to have high profits due to proper control of the industry. Even though this
staff recruitment is necessary, it requires considerable funds to allow it to go through. Due to the
challenge if funds most industries do no select the appropriate staff and hence little or no visitors.
(Sparks, Bradley, and Callan, 2011, p. 490) Also, the staff should undergo interview where most
faculties do not pass the process. Therefore, there is no proper selection of qualified individuals
while escaping the expenses associated with that. This makes the industry to lag behind.
Training and development of the industry is another issue in human resource context. The
selected individuals should undergo exercise before and after starting the work. This will ensure
that those individuals are sure of what they are doing for the benefit of the group. Also when the
staff undergoes the training, they may lead to the development of the industry hence grate
benefits and high profits to the industry (Millar, Mao, and Morea, 2010, p. 8). Preparation of the
individuals joining the company may be costly to that society consequently they will consider

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leaving it out which may lead to massive losses of the company due to lack of required
knowledge to enhance the functions of the company.
The financial context (200 words)
Escalating renovation and construction cost have increased in hospitality and tourism
management. The existing buildings are increasingly demanding upgrades and improvements to
fit for current physical condition and also to adhere to current standards to remain competitive.
Even construction of the new building with improved market conditions (Croce and Perris, 2017,
p. 10). Very high costs of construction are the mitigating factors to the further development of
the industry. This is very expensive due to rising costs of interest, high costs of energy and also
the rapid escalation in the price of the materials used in the building. This makes the industry to
face a lot of difficulties in improving the structure into current standards due to increased costs.
There are many evolving customer expectations in tourism and hospitality management which
require high capital accumulation. This is to be able to satisfy the customer needs and enable
them to come back another time (Kumar and Yang, 2017, p. 110). Currently, the customers are
profoundly influenced by the technology like use of internet which is a very crucial thing to get
many customers. Many customers are resisting the ‘chain mentality' hence an excellent
opportunity for creating customized and unique experiences as well as minding the "bottom
line." As a result, the appropriate market approaches will be needed to adopt and also update to
reach the customers efficiently.
The product and market context (200 words)
There is increased guest sophistication. The consumers are sophisticated that is there is
developed to a high degree of complexity and a great deal of experience and knowledge of the
culture. The types of products and services which they desire from the market may not entirely
be satisfied (Cho et al., 2017, p. 420). The social amenities they want may include recreational
facilities, guest-room innovations, advanced business centers and increased costs. This may
make the guests of other areas if they are not appropriately served hence leading to falling of
business.

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Also, the technological issues affect the product and market context in the hospitality and
tourism management. There are significant challenges of keeping the pace of technology very
fast. This may be difficult because it may be too expensive. When the guests find that in specific
markets the technology is outdated and does not fit their standards, they may decide not to come
back, and they also invite others not to go to that make leading to loss of customers (Schegg and
Stengel, 2017, p. 33). Each market should advance its technology.

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Bibliography
Cho, M., Bonn, M.A. and Braymer, R.A., 2017. A constraint-based approach to wine tourism
market segmentation. Journal of Hospitality & Tourism Research, 41(4), pp.415-444.
Chon, K.S., 2015. Self-image/destination image congruity. Annals of Tourism Research, 19(2),
pp.360-363.
Croce, E. And Perris, G., 2017. Food and wine tourism. Cobi.
Kumar, J. And Yang, C.L., 2017. Service quality and loyalty of international students studying in
the field of hospitality and tourism. MOJEM: Malaysian Online Journal of Educational
Management, 2(3), pp.97-118.
Millar, M., Mao, Z. And Morea, P., 2010. Hospitality & tourism educators vs. The industry: A
competency assessment. Journal of Hospitality & Tourism Education, 22(2), pp.38-50.
Schegg, R. And Stengel, B., 2017. Information and Communication Technologies in Tourism
2017
Sparks, B.A., Bradley, G.L. and Callan, V.J., 2011. The impact of staff empowerment and
communication style on customer evaluations: The special case of service failure. Psychology &
Marketing, 14(5), pp.475-493.
Xiang, Z., Du, Q., Ma, Y. And Fan, W., 2017. A comparative analysis of major online review
platforms: Implications for social media analytics in hospitality and tourism. Tourism
Management, 58, pp.51-65.

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