Hospitality Industry Analysis and Trends

This assignment requires a thorough examination of the current state and future direction of the hospitality industry. Students are expected to analyze key topics such as the impact of information and communication technologies, human resource management issues, environmental concerns, and entrepreneurial opportunities within the sector. The analysis should draw upon relevant research articles and academic literature to provide a comprehensive understanding of the complex dynamics at play in the global hospitality market.

Current Issues In International
Hospitality Management
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Executive Summary
In the present scenario, the competition among businesses in hospitality industry has
become so intense that it is not easy to achieve higher sales and profits. Nowadays businesses in
this sector are also required to deal with various kind of issues and challenges at the time of
carrying out their operations. One of the major challenge which has been faced by companies is
related to trade unions. It has been identified that the cost of recruitment and selection for firms
has also increased because of rise in health cost. Another issues which has been faced by
companies in hospitality industry is regrading loyal and long term customer. The increasing
competition has created obstacles and have impacted the overall performance of the hotel
industry. Moreover, it also affects the internationalisation of the hospitality sector. The
government is also made restrictive visitation policies to try to stop this terror attack as well as
try to manage risks. This type of precariousness is causing travellers to rethink about their safety
and security. It is essential for business firms to focus on various aspects that can influence the
overall working of organisation. Such as political, economic, social, etc.
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Table of Contents
INTRODUCTION...........................................................................................................................4
LITERATURE REVIEW................................................................................................................4
CASE STUDY.................................................................................................................................7
Discussion and Analysis..................................................................................................................7
CONCLUSION..............................................................................................................................10
RECOMMENDATIONS...............................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
With the increasing and changing demand of customers hospitality organization tends to
grow at the fastest rate that further assist in generating the level of employment in the industry.
The key aim of hospitality organization is to meet the leisure and luxurious requirement of
travelers and visitors related with accommodation, logging services or food services etc. with the
increasing context of globalization hospitality industry is focusing on innovating their services so
that organization within industry can easily sustain in the international market (Chen, 2012).
Thus, it can be said that it is expected as future trend and challenge for the international
hospitality sector to enhance their reach across the national boundaries.
Presently, the report focuses on measuring different current issues as well as challenges
within international hospitality sector that disrupt the operations of hospitality organization. The
key issues that would be highlight in the report include rising in the demand of luxurious and
leisure services within hotel, increasing global uncertainty related with customer safety and
security. However, all the issues that are highlighted in the report will directly affect the overall
performance and activities of the hospitality organization among their rival companies.
LITERATURE REVIEW
Contemporary issues in international hospitality sector
There are different challenges in the current scenario of the international hospitality
sector. The impacts from the environment and social life are influencing hotels operations and
developments. According to (Chon and Yu (2012) stated that, the changing labor conditions in
this sector is one of the issues because the Human Resource which faces many challenges in the
organization (Chon and Yu, 2012). This is happening because of the compression of the labor
force, union issues, intensify health care and benefit costs etc. The growth in the trade unions is
the other challenges which is related to business operations of the hotel. Increasing of the health
care costs is affecting the recruitment and selection process of the employees. This is because the
costs has rise which is impacting the hospitality sector to be limiting in their hiring process. As
per the view of (Kusluvan, Kusluvan and Buyruk (2010) asserted that the rising costs on
consumer Travel and hotel Demand is the issues which are faced by the hospitality industry
(Kusluvan, Kusluvan and Buyruk, 2010). Due to the increasing of the Terrorist attacks,
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consumers are preferring less travelling in the other countries. This is because customers doesn't
want to harm themselves and there is a chance of less security and safety. For example, the
countries like Middle East and UK, where terrorist attacks is influencing the customers'
perception to travel less. Thus, this results in, decrease in the demand and sales of the hospitality
industry. On the other hand, (DiPietro and Wang (2010) contend that this issues will also helps
the hotels to be more creative in their innovation to attract large numbers of customers (DiPietro
and Wang, 2010). However, this also increases in renovation and construction costs of the
company. This is because the hotel is making effort to attract more customers and to increase
their profitability.
To retain their loyal customers and attract new ones, the organization is making changes
according to the customers tastes, preferences and lifestyles to meet their expectations. If the cost
of the company is increasing then it also enhancing with new developments to attract large
number of customers. Nickson, (2013) founded that, the other issues which is facing by the
hospitality industry is the natural disasters which are affecting the consumers' travelling
(Nickson, 2013). The disasters can be in form of the global warming or the climate changes of
the particular countries. Environment plays a vital role and this is because, if the environment is
contaminated with the virus or flu then customers were reluctant to come to that country for
travelling or to stay in a hotel. In contrast to this, some places which have greenery or eco -
friendly then customers would like to visit that country and it is directly helping out the
hospitality industry also.
Geppert, Matten and Williams, (2016) suggested that the evolution of the customers
expectations is also the major challenges of the hospitality sector (Geppert, Matten and Williams,
2016). The customers are spending more on the travelling and hotel so to satisfied their needs
and meet their significant priority. Now, the consumers are researching the hotels on internet for
the luxury and benefits of the accommodation services. This is because to achieved the unique
and innovative experiences and its facilities. So for this, customers have to make arrangements
according to the needs and requirement of the customers to satisfy them. Despite of this, the
company has to invest lot in the technology because most of the customers are the techno savvy
and they want computers and laptops in their rooms.
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Factors affecting the performance of hospitality sector
There are several factors which are affecting the performance of hospitality sector which
constitutes of various challenges. According to Pizam and Ellis (2014) stated that the one of the
aspects is the technology and social media. This is because internet plays an important role in it
(Pizam and Ellis, 2014). Now the customers wants all types of luxury and facilities of their stay
in the hotel. Due to the customers demand, the hotel have to come up with more innovative
products and services to attract large numbers of customers. The hotel has to give facilities to
their customers such as free Wi-Fi connection so that they can used electronic gadgets and
internet. The use of social media is essential for the hospitality industry because it is helping out
the company to do their effectively and efficiently.
As per the view of Bilgihan and et.al., (2011) evaluated that the other factor which can
affect the performance of hospitality industry is increasing demand and low customer satisfaction
(Bilgihan and et.al., 2011). The demand of the luxurious hotel is increasing because the
customers is spending more to experienced the sophisticated lifestyles and other facilities. But,
the hotels are not meeting their expectations to give proper services which they are needed. For
instance, if the customers are health conscious then the organisation should serve the food
accordingly such as low calorie food etc. If company gets customers satisfaction then the firm
will automatically lead to the profitability. However, (Myung, McClaren and Li (2012) critically
assessed that high level of the competition in the market is the major issue for the hospitality
sector (Myung, McClaren and Li, 2012). There are many hotels which are are giving competition
to the other hotel at the same level. The economic, social and technological developments helps
the hotels to stand out from other hotel on the base of their strengths.
The management of the hotel helps in setting the objectives and plans which are to be
accomplished by their employees. The hotel industry is doing various innovation and creativity
in their products and services to target large number of customers base. (Duncan, Scott and
Baum (2013) has opinion that the terrorism is the one of the major factor which affecting the
performance of the hotel (Duncan, Scott and Baum, 2013). This industry with the help of the
government are trying to reduced this global uncertainty which are affecting the business of the
hospitality sector. The government is also made restrictive visitation policies to try to stop this
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terror attack as well as try to manage risks. This type of precariousness is causing travellers to
rethink about their safety and security. Through this issues, the hotel industry is facing many
issues which are affecting their developments and business.
On the contrast to above, Chan and Kuok (2011) concluded that these type of the
negative aspects are influencing the sales and profitability of the hospitality industry (Chan and
Kuok, 2011). If the management of the hotel is not good then also customers will avoid to visit
the hotel. In addition to this, it will impact the overall performance of the hotel industry and it
will also affect the internationalisation of the hospitality sector. If the company will provide
essential facilities to their customers then it will helped them to sustain in the competitive market
(O'Gorman and Kevin, 2009).
CASE STUDY
For the present study the chosen hospitality organization is Hilton hotel. The hotel is one
of the leading chain in the UK as well as across the globe. The case study of Hilton focuses on
assessing the various issues that is economic issues, social and environmental issues that affect
the international operation of the hotel. In addition to this, all the issues faced by the hospitality
organization will adversely affect their activities that further impact the hotel brand image (Ip,
Leung and Law, 2011). Thus, customers will avoid to use the services of Hilton in the case of
negative image of organization.
Furthermore, the case study of Hilton also states that contemporary issues in the market
has also impacted that overall management structure as well as human resources within the hotel
so that they can render the services accordant with the trends and issues (Avraham, 2007). In
addition to this, Hilton hotel has also focus on different factors that affect the overall
performance of the hospitality organization that is with the increasing technological factor hotel
can enhances their loyalty base and also results in satisfying the customers. With implementing
the technological factor within Hilton hotel they can also also face issues related with corruption
of data, hacking, attack of viruses etc. that debased the personal information of customers.
DISCUSSION AND ANALYSIS
From the above discussed current issues in relation with the international hospitality
sector it has been identified that there are various issues existing in the external environment.
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Thus, directly and indirectly affect the international operation of Hilton hotel. The different
issues that affect the Hilton are-1. Political issues- The key issue that affect international activities of Hilton hotel is related
with political issues. With the increasing activities of terrorism it affect the operation of
Hilton hotel as customers or visitors will not prefer to visits such places that demonstrate
threat of terrorist (Davis, Leach and Clegg, 2011). Moreover, it also affect the overall
hospitality industry as customers prefer to visits such places that ensure proper security
and safety of individual. Furthermore, with the instability of political factor also affect
the hospitality sector for instance, UK has focused on rejecting the visa application of the
individual those who are non-European thus, in this situation it may results in canceling
the reservation or booking of the hotels (Lugosi, Lynch and Morrison, 2000).2. Economical factor- Another issue that has been analyzed is economic factor include
downfall in the economy results in declining the rate of tourism from the oversea that
further influences the profitability of the hospitality sector. In addition to this, with the
increase in inflation rate as well as unemployment UK government must focuses on
lowering down the taxes that results in growing the economy (Jaafar and et.al., 2011).
Thus, it further results the customers to pay less tax rate for the hotel services.3. Social factor- From the above it has been also analyzed that social issues also impact the
hotel operation and services for instance, with the increase in standard of living
customers now a days prefer to focus on adopting the leisure and luxurious services
(Wetherly and Otter, 2014). Therefore, Hilton must integrate the required services as per
the requirement of customers so that they must satisfy their customers. For instance,
sponsoring different activities and events also enhance or boost the tourism that further
increases the demand of hospitality organization in the region.
4. Technological challenge- One of the central element of environment that primarily effect
the international hospitality sector is technology. The technological challenge had great
consequence on the activities of traveller as well as on the businesses of hospitality
organization (Gin Choi, Kwon and Kim, 2013). Thus, in the present scenario customers
or traveller mainly prefer to book or reserve the hotel rooms and services via internet.
Thus, it further support in faster their services that attract large of their customers. On the
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other hand technological factor sometime as act as challenge for the Hilton hotel as it
may lead to corrupt the data of individual.
However, it has also been discussed that there are different factors that overall impact and
affect the performance of Hilton Hotel within the international hospitality sector that is
technology and social media, increasing demand and low customer satisfaction level and
increasing level of competition. Thus, all the above factor will positively and negatively affect
the performance of Hilton in the hospitality organisation (Harkison, Poulston and Ginny Kim,
2011). In the technological advanced environment social media plays significant role in
promoting and marketing the leisure and luxurious services that are rendered by the hotel to their
customers. Moreover, using the social media tools and equipment will positively enhances the
overall performance of Hilton in the domestic as well as international market. Another factor that
affect the performance of Hilton hotel include increasing demand of the customers. With the
increasing standard living of customers they prefer to choose the leisure and luxurious services.
Therefore, Hilton hotel need to modify their services accordant with the requirement of
customers (Okumus, 2013). For instance, now a days customers visits the hotel that possess
natural environment and surrounded by greenery therefore, Hilton hotel must focuses on
establishing their hotel in such places to attract the customers towards their hotel. This, further
enhances the performance of the hotel. In the situation if Hilton is not meeting the requirement of
customers it may results in not satisfying the customers.
Thus, it will build negative image of hospitality organization in the mind of customers
that further outcome in affecting the overall performance of the organization. Furthermore, with
the increasing level of competition within the hospitality industry it will also affect the overall
performance of Hilton. For instance, with the various competitors like Marriott International and
IHG groups in the market Hilton need to amend their services accordant to their rival companies
in order to render quality services in the affordable prices (Pechlaner and Volgger, 2012). Thus,
it can be said that increasing level of competition within the industry results in affecting the
overall performance of Hilton hotel. With the increasing level of competition in hospitality
industry Hilton hotel has to change and modify their policies and services accordant to the rival
hotel so that they can render quality customer services to their guests and visitors. Thus,
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rendering adequate and quality services to customers will directly enhance their performance as
more customers will prefer to visits their hotel.
CONCLUSION
From the above report it can be summarizes that international hospitality sector basically
focuses on diversified segment that focuses on meeting the needs and requirement of all the
customers and visitors. Therefore, in order to sustain in the international hospitality sector Hilton
hotel has to focused on different contemporary issues as these issues will primarily affect the
services and operation of the hotel in the market. Furthermore, the current issues that directly
affect the operation and activities of hospitality organization include terrorism issues, changing
needs and demand of the customers, technological issues that corrupt the information or data of
customers etc.
RECOMMENDATIONS
The recommendations which are needed to overcome the current issues in international
hospitality sector are as follows:
 Customer satisfaction plays an important role in the organization. The hotel industry can
satisfy their customers by meeting with their needs and requirements. The hospitality
sector should makes changes according to the customers' tastes, preferences and lifestyles
to meet with their expectations. Through this the company will able to meet with the
demand of the customers and it will helps in creasing of their sales and profitability of the
organization.
 The second issue which is the terrorism that also can be reduced or eliminate by the hotel
industry. For this, the company has to incorporate with the government and try to follow
that policies which are meant for the anti- terrorism. The government has introduced
some regulatory framework which can be followed if hotel industry integrated with the
legal aspects. The hotel should check the identity card as well as passport of the
customers which are visiting their hotel premises.
 The hotel industry should provide technology and other innovative products and services
to their customers. Every room should have Wi-Fi connection facilities so that customers
easily access to the internet. The texture and colour of the rooms should be according to
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the consumers perspectives. The hotel has to provide all facilities and electronic gadgets
to their target market so that they can be satisfied and this will help in improvising in the
hotel's profitability.
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REFERENCES
Books and Journals
Avraham E., 2007. Media Strategies for Marketing Places in Crisis: Improving the Image of
Cities, Countries and Tourist Destinations. Butterworth-Heinemann.
Bilgihan, A. and et.al., 2011. Information technology applications and competitive advantage in
hotel companies. Journal of Hospitality and Tourism Technology. 2(2). pp.139-153.
Chan, S. H. and Kuok, O. M., 2011. A study of human resources recruitment, selection, and
retention issues in the hospitality and tourism industry in Macau. Journal of Human
Resources in Hospitality & Tourism. 10(4). pp.421-441.
Chen, J. S., 2012. Advances in hospitality and leisure (Vol. 8). Emerald Group Publishing.
Chon, K. S. and Yu, L., 2012. The international hospitality business: Management and
operations. Routledge.
Davis, M. C., Leach, D. J. and Clegg, C. W., 2011. 6 The Physical Environment of the Office:
Contemporary and Emerging Issues. International review of industrial and organizational
psychology. 26(1). pp.193-237.
DiPietro, R. B. and Wang, Y., 2010. Key issues for ICT applications: impacts and implications
for hospitality operations. Worldwide Hospitality and Tourism Themes. 2(1). pp.49-67.
Duncan, T., Scott, D. G. and Baum, T., 2013. The mobilities of hospitality work: An exploration
of issues and debates. Annals of Tourism Research. 41. pp.1-19.
Geppert, M., Matten, D. and Williams, K., 2016. Challenges for European management in a
global context: Experiences from Britain and Germany. Springer.
Gin Choi, Y., Kwon, J. and Kim, W., 2013. Effects of attitudes vs experience of workplace fun
on employee behaviors: Focused on Generation Y in the hospitality industry. International
Journal of Contemporary Hospitality Management. 25(3). pp. 410-427.
Harkison, T., Poulston, J. and Ginny Kim, J. H., 2011. Hospitality graduates and managers: the
big divide. International Journal of Contemporary Hospitality Management. 23(3). pp. 377-
392.
Ip, C., Leung, R. and Law, R., 2011. Progress and development of information and
communication technologies in hospitality. International Journal of Contemporary
Hospitality Management. 23(4). pp.533-551.
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Jaafar, M. and et.al., 2011. Entrepreneurship in the tourism industry: Issues in developing
countries.International Journal of Hospitality Management. 30(4). pp.827-835.
Kusluvan, S., Kusluvan, Z. and Buyruk, L., 2010. The human dimension a review of human
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Quarterly. 51(2). pp.171-214.
Myung, E., McClaren, A. and Li, L., 2012. Environmentally related research in scholarly
hospitality journals: Current status and future opportunities.International Journal of
Hospitality Management. 31(4). pp.1264-1275.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Okumus, F., 2013. Facilitating knowledge management through information technology in
hospitality organizations. Journal of Hospitality and Tourism Technology. 4(1). pp. 64-80.
Pechlaner, H. and Volgger, M., 2012. How to promote cooperation in the hospitality industry:
Generating practitioner-relevant knowledge using the GABEK qualitative research
strategy. International Journal of Contemporary Hospitality Management. 24(6). pp. 925-
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Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing
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Online
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fanciful to factual. [Pdf]. Available through:
<http://strathprints.strath.ac.uk/7647/2/strathprints007647.pdf>. [Accessed on 20th April
2016].
Pizam, A. and Ellis, T., 2014. Customer satisfaction and its measurement in hospitality
enterprises. [Pdf]. Available through:
<http://ferysw.staff.fkip.uns.ac.id/files/2014/02/customer-satisfaction-and-its-measurement-
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