Critical Analysis of Contemporary Hospitality Management Issues

This report provides a critical analysis of contemporary issues in hospitality management, examining the impact of global and national brands, ethical and sustainable development practices, and challenges faced by the hotel industry. It explores the effects of brand influence, including both positive aspects like loyalty pricing and in-room technology, and negative impacts such as increased competition and poor customer satisfaction. The report also highlights labor shortages, employee turnover, and the evolving landscape of the industry, including the rise of home-sharing platforms like Airbnb and Marriott's response. Furthermore, it discusses the importance of human capital, service quality, and competitive strategies within the dynamic hospitality sector. The report concludes with an overview of sustainability initiatives, zero-carbon design, and the need for innovation to address the industry's evolving challenges.

Running Head: TOURISM 0
Contemporary issues in hospitality management

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Contents
Introduction...........................................................................................................................................2
Answer-1...............................................................................................................................................2
Critical analysis of how actually global and national brands affect the hospitality sector with both
positive and negative impact.................................................................................................................4
Critical analysis of ethical and other sustainable development in the hotel sector with two practical
sustainable hotel examples...................................................................................................................6
It is important to declare several challenges as suffered by the hotel industry with the inclusive of
both social and cultural problems of the advancement of the hospitality industry in regards to
tourism destination-..............................................................................................................................8
Conclusion...........................................................................................................................................10
References...........................................................................................................................................11

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Introduction
Hospitality is a dynamic industry with the changing influence of external factors.
Organisations often fail when the competition is extremely high. Successful organisations
manage, develop, create, and acquire resources, which can provide competitive advantage.
Companies build and control relationships with huge number of groups, stakeholders, and
companies (Maxwell, Ogden and Broad bridge, 2010). Globalisation intensifies the
competitiveness to maintain its advantage where they will expand relationship collaborate
networks with one another to become competitive, which has the central idea of challenging,
worrying in regards to the global hospitality services, taxation issues, environmental issues,
and employment issues.
Answer-1
The value of human capital is the main source of the organisational success where the human
resources can allow the advantage to have a competitive advantage. The hospitality sector
faces several challenges are lack of labour, increasing competition, and employee turnover,
which increased the huge direct expenditure, and also the lack of influence attribute employee
nature.
Employee turnover- it is one of the biggest challenge under hospitality industry as it suffers
from the great smooth of supervise turnover that is the consequence of numerous factors such
as unfortunate working situation, deficiency of obligation, job dissatisfaction, which will
influence the employee`s behaviour. This will result into several factors such as poor
supervisions of the captains. Out of the research conducted so far, legal environment where
the turnover pass from the superior with the subject factions such as poor environmental
where takeover problem in HRM (Slåtten and Mehmetoglu, 2011). This attempts to argue
that consequence of many factors such as poor working environment, job dissatisfaction, lack
of commitment, and bad supervision, which affect the employee`s attitude and behaviour.
Service quality helps in creating inexpensive benefit in the hospitality sector on the ground of
which any hotel cannot make it continuously to enhance and develop its service superiority.
Competitive gain can be generated from the interior foundations, which includes features
such as infrequency, individuality, and non-substitutability at the end of the service
distribution system. It may be differentiated as the unique advantage for the hotel
organisation, which cannot be effortlessly copied.

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In order to participate and finally distinguish offerings amongst the hospitality facilities. First
can be competition on the basis of minimising costs and price that will lock that the customer
care has not emerged in the complex level to sustain and develop. In the level of turnover, it
is seen that the employees who are quite organised with different approaches for the service
quality management have served the customers. The first and foremost aim to avail services
where a holistic approach has been employed and it even have future sights from all the
levels of the company (Marasco, Martino, Magnotti and Morvillo, 2018).
Growing rivalry- Boarding-houses are everywhere, which indicates unrestricted is already
overbuilt. There are several available hospitality room, which is qualified of the companies
who are desired to be rent on. The increasing competition involves cost cutting for the efforts
to avail huge value to reduces, and guests when the profits are generated. For example- the
hotel industry has been confronting huge level of competition and one of the biggest threat in
2017, which is beyond opposition from Airbnb. The valuation was over 10 billion dollars that
is quite advanced than many other great chains of hotels such as Hyatt. This application has
destructed hotel industry as it avails customers with the units at low cost. Steep fall in the
occupancy ratio in the waking of worldwide slowing down and cutthroat competition among
the tourism workers in the shrinking market, which have brought down the hospitality sector
rents drastically across the nation. The rivalry in Europe has been occasioned in the low
occupancies. Therefore, average number of room has been almost 30 percent in all the major
vacation markets. Rooms are not now sold for less than but they are bundled with the
packages such as airport transfers, packages and the day tourism. Competition calls for
origination in the Tourism industry (Bowden. 2019).
Lack of labour- shortage of labour and its impact on this industry in every geographic
location that was consistently faced by the hoters. Capital does not limit the extended
hospitality sector but human resource is the same concern. Shrinking labour force is the
major challenge faced by the global hospitality industry as per the international society of
hospitality consultants that has been recently convened for the brainstorming world issues
and rank them as per their priorities. Failure of adequate address low pay, demography, level
of wages, and reputation for long hours are some of the important and contributing factors.
Professionals in the creative hospitality have started to create the innovative strategies in
order to capture and keep high quality of workers. For example- nearly 3, 30,000 staff have
been working in UK industry that has been considered by leaving the UK because of Brexit
that has finally has resulted into lack of staff. The survey launched by the collaborated

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software industry named “Planday” with the conduction of YouGov, which was conducted in
April 2018 based on 261 hospitality and 407 hospitality workers across UK. Three percent of
the hospitality manager shops which is nearly 4 percent of the workers considered as the
result of Brexit.
Critical analysis of how actually global and national
brands affect the hospitality sector with both positive
and negative impact
With the expansion and growth of luxury hotel market, it is expected that it will grow at the
rate of 4.7 percent from 2018-2023.Increase in travel and tourism sector, there is a changing
pattern in living standards leading to progressive growth in the hotel brands. The demand for
luxury brands with the type of the properties and it is affected by many factors such as size,
location, and on-site properties. With the increase in the disposable income and popularising
booming services and low cost airline, which is expected to grow. Some of the important
positive impact of existence of national brands are that it becomes easier to check-in that will
ultimately become more popular, loyalty pricing, and improved in-room services and
technology. Guests are expected top-notch in-room technological advancements. Guests often
expects to remain supplied with on-demand streamlining services, smart mirrors, in-room
tablets, custom lighting, and fast internet. The technology is supposed to tailored for the
arrival for each guests. Future hotel will come up to know guest taste and have technology. If
one is not technology fan, you will still find a newspaper or magazine at the tablet place. The
millennial would be ready for the technology treating overtime when they check their
favourite hotel (Seraphin, Sheeran and Pilato, 2018). If one is looking for anything related to
hospitality sector.
Positive impact
Loyalty pricing- The impact is undoubtedly positive where the loyalty pricing is a huge
component in travel industry. The hotel industry has been designed to more personalised
trend in future. Many resorts and hotels have found their ways to attain the guests to book
their resorts directly. Hotel are instituted the campaigns which allow the customers to enjoy
the best discounting deals. Direct discounting will require finding some innovative ways in
future to attract the travellers. Some hoteliers allure customer loyalty programs can increase
the footfall to enhance the customer satisfaction, and determination of client`s from the
defecting their rival hotels. Everyone under the hospitality sector, top hotel brand has been

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trying for outgoing each other when it comes to things in regards to satisfaction and customer
service. Popular and most frequent guest program and customer loyalty program has been
designed to affect the purchasing decision of the customers. For example- unveiling the new
loyalty program that could create three main new elite and compensation guests to stay at
hotel and spend money on the drinks, spa, and food (Ram, 2017). There are nearly 8, 000
Wyndham hotels in the world, which will accept the redemptions. Choice hotels have already
revamped its privileges program that let the travellers who may finally stay on the weekday
in order to earn instant gifts such as Shell locations, credits at Amazon.com, Uberlandia extra
airline miles. The main idea is to bring the new customers where more people are lured to
stay at the alternative lodgings such as vacation rentals. The industry has been consolidated
such as Marriott international buying of Starwood resorts and hotels. Marriott first move has
let the members of both accounts to earn and redeem at the same time with the merged
companies 30 brands. It is a great sign where hotels care regarding the loyalty programs.
With increasing number of lodging competitors such as HomeAway, Airbnb and other
renowned home brands that attempt to convince the travellers in order to reserve the rooms
rather than internet travel agencies Travelocity and Expedia (Stainton, 2016).
Increased profitability- it is an positive impact advantageous to the global branding as global
hotels make huge profits such as Hilton, and Marriott international. Further, these
international brands of hotel industry can have great market reach and feasible economies of
scale.
Credibility- This factor has been playing an important role in relating the quality of
believable and worthy of trust maintained among customers.
Negative impacts
Existing competition- hospitality is tremendously competitive. Hoteliers have to comply with
the constantly update with the trends so that they can stay relevant. With an aim to become
more demanding, properties are not much able to fulfil the needs that are left behind.
Hoteliers have been facing huge amount of competition even when it is managed, managers,
successful hotel business where, managers are left with no bargaining power when it comes
to distribution. Large brands can afford to set aside the large amount of money required for
marketing, independent properties, which do not have any choice rather than agreeing to the
OTA commissions (Guimarães and Silva, 2016). Commissions have risen to30 percent
independent hotels, which faces threats from the entire local hotels especially when it comes

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to budget hotel aggregators. They are trying to rebrand the local hotels and accommodations
providers that are affordable properties complying with the standards. Airbnb has become
one of the biggest challenge to the largest accommodation sharing commodities. The
organisation has been projected as 129 million room nights each year. Hoteliers have figured
nothing to worry in regards to (Pienaar, 2008). Airbnb ensured that 17.2 percent of the room
inventory in New York, 10.4 percent in London, and 11.9 percent in Paris. Increasing number
of guests have been choosing to dine for the local joints and further explore different places.
Staying ahead in the competition is a challenge and with an aim to maintain the consistent
image among the new players. Managers have found as more than in ally in cloud computing
platform.
Poor level of customer satisfaction- Poor customer satisfaction is one of the major hotel
industrial challenge in 2017 and 2018.With luxury and the boutique, hotels that have
managed to take certain advantage of several opportunities for creativity and innovation with
other hotels have been dealing with increasing pressure to succeed (Hingtgen, Kline,
Fernandes and McGehee, 2015).In order to reduce pressure and lead towards success, several
managers have been constantly working on the multiple channels to improve the hotel
operations and their level of service. It is important to measure the mood of the customer with
the recent study on this industry bigwigs shows that clients are not impressed by you that can
offerand what to know where personal services is a way to improve the client`s mood
(Ateljevic and Page, 2017).
Lack of personal training with the experience and expertise in hotel industry-
Hotels do not take time to look after the trained personnel that are bound to face challenges in
the service delivery. Many hospitality businesses have also managed afloat in severe tough
economy. The recruitment in the hotel industry has been facing the understanding of the
needs and wants to seek today`s hospitality. Highly luxurious accommodation avails trained
professionals at huge cost that is an impossible feat for low priced and budgets. Managers of
UK hospitality predicts that due to the brexit scandal, they are forced to shut the business
where nationally they would equate to nearly £1.1 billion loss on the basis of economy on the
basis of£37 billion, that further contribute to the nation`s economy.1 out of 5people among
the hospitality managers reports that the recruitment, which was harder now than April 2017
with an believe that16 percent will not be able to fulfil the staffing needs for the next years
with the domestic workers.53 percent of workers and employees think that UK Brexit is less

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welcoming place to work and live. It is important to ensure that false confidence with the
hospitality sector with three times where many workers consider to take leaves when the
managers expect. It is important where the managers can make sure that it has right
infrastructure in the place to engage the employees and build loyalty. More than 30 percent of
the workers are forced to leave the job because of Brexit with the immigrant top list where 26
percent equals to 86500 people at the national level.
Critical analysis of ethical and other sustainable
development in the hotel sector with two practical
sustainable hotel examples
Some of the important example of ethical and with other sustainable developments in regards
to the hotel sector with practical implication are given below-
Nikoi is an renowned private island for 3-5 hours has initiated many natural schemes in order
to protect the nature abundant enclaves of tropical beaches, coral reefs, and rainforest. It has
been seen that the resort has been recently shortly selected for National Geographic world
legacy Awards. This place has been managed to keep the nature at first and the environment
highest on agenda without shouting on it. Staying at the resorts, luxury and ecosystem seem
to perform effortlessly hand in hand, where Nikoi experience is near to become the part of
unexploited natural environment. The green initiative bought for island has been designed in
such a way that natural ventilation is unique. Driftwood and the alangalang are the main
primary building materials with glass, varnish, concrete, paints, and other self-manufactured
that are used to create. Electric weightage on something in a standard room is always than
150 Watt.
Treatment of Zero hotels (necessity and fantasy) Professor of Zero carbon design at the
university of Birmingham, and ludo Jankovic often takes into consideration in regards to raise
profile and benefits of the Zero carbon design. It is seen that as per the 2016, building
regulations for England, which will acquire new houses to become Zero carbon as it is
followed with the same level of requirement for all the new residential buildings in 2019.
They claimed that they would not build new hotel form 2019 unless actually produces net
zero CO2 emissions. Due to this, the corporate underwent building of design regularly, time
to plan and effective implementation of transition to 2019 of building regulations that is
already here. Here is the explanation of core principles of Zero carbon design. Initially, zero
carbon design will have to need to fulfil the technical needs for net zero carbon. On the

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second basis, it will have to be thermally comfortable. On the third, it wants to create an
economic benefit to the entrepreneur (Sigala, 2016). We cannot say where zero carbon design
has been gaining popularity and momentum because of lack of awareness. Further, it will
replicate the art and knowledge that make wide impact that has developed new MA course
for Zero Carbon Architecture. The course has started on September 2013 that has created new
type of professional, which will further become unique in the set of multidisciplinary skills
for the Zero carbon design and retrofitting of the buildings (Fennell, 2016.Accor hotels have
revealed its commitments for the sustainable forwarding to the 2020.The company has
launched “positive hospitality “that will carry forward Accord planet programme into the
second season, Group has been building four main action areas such as Guests, Communities,
People, and partners. The company has conducted to strive for zero food wasting that is an
company`s decision in order to make future owned and leasing hotels development and the
renovations 100 percent low carbon by 2020.Accor will aim to act as a inclusive organisation
for its employees and it continued to foresee the employees engagement that increases every
year. Accor aims to create an positive impact on ensuring the Accor hotels that are engaged
with the citizenship and the projected locally (De Grosbois, 2016).
Research delivers important challenges faced by the hotel industry including social and
cultural issues by development of hospitality industry for new tourism destination (Battour
and Ismail, 2016).
It is important to declare several challenges as suffered
by the hotel industry with the inclusive of both social
and cultural problems of the advancement of the
hospitality industry in regards to tourism destination-
Social cultural influences are some of the human effects of the industry with an motive to
support the dynamics in the superiority of inhabitants at the tourist destinations in regards to
transformational traditions, identities, norms, and values arise from the tourism. This aspect
of socio-cultural effects is divided into seven categories such as enhancement of the local
facilities, availability of many measures, infrastructure, preservation of local cultural heritage,
reduction in conservative behaviour towards movement of people, availability of more
events, conversation of local heritage, reduction of people from the rural areas, and increase
in the youth exchange programmers (Werthner et al, 2016).It has been stated that tourism has
not only ameliorated image on the basis of image and the infrastructure construction but at
the same time, it is conductive to improvement of the activities recreationally with the quality

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of life. The impact of socio-cultural effect on tourism such as variety of recreational
activities, variety of food and clothes, faster transportation, improvement in educational
quality, and greater quality of urban environment (Fernández, Caldito and Rivero, 2015). It
differs from the turn down in group of people from the rural areas to more civilisation,
shortage of traditional communities, and traffic congestion. It refers to the breakdown of
conventional family relations, behaviour of the young generations getting worse,
contradictions in the community, feeling of community, antipathy among the tourists and
locals. Tourism with the local residents that could share several heritage sites at several
places and it further help to better the lifestyle and inherit traditional culture by raising the
sense of local and national pride. Main rationale of making World heritage list that is support
huge sharing of the experiences, promotion of heritage conservation, better understanding of
people, overexploitation of legacy sites, that has resulted in several resulting issues that is
already a negative impact socially as well as culturally. With the enhancement of
tourismification of the heritage sites, and local values with deterioration and
commercialisation. Apparently, needy people are exploited, lead to cultural decline, and the
sporadic violence. There are no significant institutional reforms, which have implemented in
order to ensure the privileges of the inhabitants and also which can benefit the tourism
(Sigala, 2017).
Unenthusiastic impact of the sightseeing can reflect several obstacles to gain the sustainable
government of the WHSs. It leads to lack of financial services and assistance that lead to loss
of governmental subjects’ status while making a decision. The rising country has major
amount of WHSs, china that remain under the population force that have come to following
to the tourism development (McGregor and Robinson, 2019). It points out the government of
WHSs, which did not engage actions measuring in relation to community sustainability
magnitude in the same way for the sustainable development of environment. Some of the
important aspects of social culture relating it to the hospitality and tourism industry are-
Customers will have to distinguish on the basis of characteristics. Lifestyles and generations
have gained major attention as it is the predictors of the social trends in the hospitality sector.
Age (older people) population
With the increasing of emerging boomers at the last few decades, there are severe issues that
will occur near North America, Asian countries, Europe where older people can become
significant component of residents. It is seen that inhabitants of 65 and older than this has

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increased from 6.9 percent till 2000 to nearly 16 percent in 2050. Higher proportion of older
population can be different from the needs of middle-aged people and younger people and it
is one of the major issues to the advertising for tourism industry. Advertising for the older
people demands for special promotional plan. It is important to keep the message direct and
they have a huge time in their hands where the corporation should be prepared enough to
answer several more detailed questions as compared to younger consumers. The hotel is
recognised to the physical limitations to the older customers such as walking with them at the
entrance that may be difficult for someone and do not allow to carry and mention with
carrying the luggage with them. The restaurant will offer conventional comfort foods (that are
older customer who are familiar to), nutrient enrich foods, fruits and vegetables that can suit
the taste and preference requiring older customer. Some of the stable income spending is
quite careful in regards to spend as compared to average younger consumers. Tourism
industry will has to consider offering of the affordable and extract realised from money paid
for all the older consumers.
Another point is that increasing number of grandparents (old people) who roam with their
grandchildren. Diverse generations will frequently live part and separated from one another.
Major challenge relating to the tourism industry has been appealing to varied group of
customers where the taste can be certainly different.
Conclusion
The tourism industry can opt for the opportunity in order to propose intergenerational
strategy for the consumers. A person who conducts the tours and engages in operating to
organize sets leads to the reduction of the travels with their grandchildren to report the multi-
generation market. The posts might suggest the activities and spaces sensitive to the ages of
the grandchildren. Journeying and discovering wildlife safari or national parks are prevalent
ideas. Increasing disposable returns, promoting weekend culture, the outline of low-cost
carrier services and thriving service sector are expected to energy the market (Ahmad, 2016).
The programme of global travellers is expected to grow 4%, annually, over the next ten years,
increasing the demand for the luxury hotel. As customers have been viewing a keen interest
in materialize aspirations of comfort living wage that is also growing as one of the critical
factors, which is honestly accountable for the enlargement of the luxury hotel market.
Comfort travel has agreed birth to the luxury inn with finest pricing. However, the premium
price emotional price of such hotels confines to the promotion growth.

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