Report on Critical Issues in Hospitality and Tourism Industry Analysis

This report provides a comprehensive analysis of critical issues within the hospitality and tourism industry. It begins with an executive summary and an introduction that highlights key challenges, including labor, marketing, and technological issues. The report then delves into the positive aspects such as innovations in guest rooms and data mining, and the negative factors such as brand overlapping and lack of effective marketing techniques. Recommendations are provided to address these issues, including improving marketing activities, leveraging technology, and organizing events to increase profitability. The report concludes by emphasizing the importance of adapting to market changes and utilizing digital marketing strategies to attract more customers and maintain a competitive edge. The report also suggests the importance of technology in the hospitality sector, focusing on customer service and communication.

Running head: CRITICAL ISSUES IN HOSPITALITY AND TOURISM INDUSTRY
Critical Issues in Hospitality and Tourism Industry
Name of the Student
Name of the University
Author note

1CRITICAL ISSUES IN HOSPITALITY AND TOURISM INDUSTRY
1.Executive Summary
The report helps in proper analysis of the different kind of issues in the tourism as well as
hospitality industry that can have huge impact on the different organizations. There are different
issues that include marketing, technological issues wherein this can have huge impact on the
entire organization. The proper analysis of the impacts both positive as well as negative impacts
has to be analyzed in order to understand the future growth and development.
The main aim and purpose of the report helps in understanding the different reasons for such
issues and this will help in analysis of the different strategies. These strategies can be applied by
the entire industry, as this will help in removing such issues.
The conclusion is based on the proper analysis of the strategies that can be adopted by the
companies, as this will help them in removing such issues. The recommendation has to be
planned in such a manner, as these will help in removing such issues.

2CRITICAL ISSUES IN HOSPITALITY AND TOURISM INDUSTRY
Table of Contents
1.Executive Summary......................................................................................................................1
2.Introduction...................................................................................................................................3
3.Analysis of the significant issues for future growth and development in Hospitality and
Tourism Industry.............................................................................................................................3
3.1 Positive..................................................................................................................................3
3.2Negative..................................................................................................................................4
4.Recommendations.........................................................................................................................4
References........................................................................................................................................7

3CRITICAL ISSUES IN HOSPITALITY AND TOURISM INDUSTRY
2.Introduction
The report helps in critically analyzing the risks and other issues in hospitality and
tourism industries. The main issues are related to labor, marketing along with technological
issues that can have huge negative impact on the industries (Pontingand O'Brien 2014). The
different marketing issues are related to market segmentation and overlapping of different brands
as well (McGehee 2014). This can have huge impact on the organization as when there is
increase in the number of different brands, there is increase in differentiation among the
customers regarding different brands that can cause huge loss to the respective company (Sigala
2017).
The main aim and purpose of the report is to analyze the different marketing issues that
can have huge impact on the business of the hotels. The different issues such as increased
sophistication among the customers along with overlapping of brands are creating huge problem
for the different tourism and hospitality industries (Fennell 2015).
The structure of the report includes the analysis of the issues faced by the respective
industry. The significant issues have to be ascertained, as this will help in analyzing the future
growth for the particular industry.
3.Analysis of the significant issues for future growth and development in Hospitality and
Tourism Industry
3.1 Positive
The innovations relating to the guest room and the data mining helps in the future growth
and development and helps in the economic growth (Zaitseva, Goncharovaand Androsenko

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2016). The other reason is related to globalization wherein this is affecting the hospitality
industry in a positive manner. In order to improve the different challenges and proper
development is required in the entire tourism industry, proper analysis is required in order to
improve such situations and this will help in analyzing the sequence of operations as well
(Hornget al. 2013). The technological factors are essential in nature to be considered as this will
help in understanding the disadvantages that is faced by the company and solve such issues (de
Grosbois 2016).
3.2Negative
There are different issues that are faced by tourism and hospitality industry wherein the
main issues are related to marketing along with technological issues as the management is not
performing well (Marianiet al. 2014). The different issues such as technological issues have to be
properly ascertained wherein there are different other brands such as containment in the market
that overlaps and this causes issues for the other companies in the competitive market Pulido-
Fernández, Andrades-Calditoand Sánchez-Rivero 2015). The marketing techniques that are
applied by the companies are not up to the standard, this is causing huge competition for the
other companies, and there will be no recovery as well (Timothy 2014).
4. Recommendations
The major issues that have been identified in the analysis of the tourism industry are lack
of proper marketing activities and the less use of technology in the different organizational
activities. The profitability and the operations of the organization can be improved with three
recommendations that are listed below.

5CRITICAL ISSUES IN HOSPITALITY AND TOURISM INDUSTRY
1. The marketing activities of the tourism industry needs to be designed in such a
way so that it can attract more guests and increase their profitability. The
attractive designing of the marketing activities can help the industry in gaining
advantage over competition in the market. The tourism industry is quite different
from the other industries as the place is sold and not any kind of products. The
competition in the industry is huge as the companies in this industry need to
compete with all other companies in the entire world. The creativity and
uniqueness of marketing campaigns is important for success in this industry. The
industry needs to update its operations constantly and showcase the latest images
of the chosen destinations so that they attract consumers. The industry needs to
develop the websites in such a manner so that they can collect the feedback of the
customers and design their services accordingly. This will help the organizations
in the tourism industry to gain more customers by providing them with attractive
packages. The companies can carry out their promotional activities with the help
of digital marketing, social media marketing and print ads. The organizations
need to hire a professional advertising team to design successful advertisement
campaigns to attract consumers to the destinations.
2. The lack of usage of the latest technologies is another major factor that has been
affecting the sales of the organization. Technology plays a significant role in the
tourism and hospitality industry. The customers along with the businesses can
gain a lot from the usage of advanced technologies. The major requirement of
technologies is related to the reservation and systems of guest services.
Streamlining the activities that are related to these aspects is the major role of

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latest technologies. Internet plays the pivotal role in the use of technology in the
field of tourism. The experience related to tourism mainly starts from the point
where the bookings are made by the customers. Technology can be used
successfully for the promotion related plans of the organization. Another use of
technology is the booking or reservations of the customers in the hotels as well as
the tickets. The large tourism organizations can use technologies to stay
connected and communicate with each other. The information can be stored easily
with the help of computer systems and the database of the customers can also be
maintained easily. This helps in improving the services that are provided to the
customers by analysing their preferences and desires. Communication with the
help of mobile phones can make the business activities easier and the customers
can always be updated regarding the changes that can occur in the operations and
processes.
3. The other way by which the tourism industry can increase its profitability is with
the help of sponsorships or events. The organizations can organize events that are
related to the destination, which they are offering. This will help them to gain the
interest of the customers that can further lead to the purchase of the packages.
Discounts and giveaways can also be offered by the organizations so that they
attract the customers and provide them with attractive packages. The coverage of
these events by the media can help the organizations to gain ground and
popularity in the field of tourism and increase their profitability as well.

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References
de Grosbois, D., 2016. Corporate social responsibility reporting in the cruise tourism industry: A
performance evaluation using a new institutional theory based model. Journal of Sustainable
Tourism, Vol. 24, no.2, pp.245-269.
Fennell, D.A., 2015. Ethics in tourism. In Education for sustainability in tourism (pp. 45-57).
Springer Berlin Heidelberg.
Horng, J.S., Hu, M.L.M., Teng, C.C.C., Hsiao, H.L. and Liu, C.H.S., 2013. Development and
validation of the low-carbon literacy scale among practitioners in the Taiwanese tourism
industry. Tourism Management, Vol. 35, pp.255-262.
Mariani, M.M., Buhalis, D., Longhi, C. and Vitouladiti, O., 2014. Managing change in tourism
destinations: Key issues and current trends. Journal of Destination Marketing & Management, ,
Vol. 2, no.4, pp.269-272.
McGehee, N.G., 2014. Volunteer tourism: evolution, issues and futures. Journal of Sustainable
Tourism, Vol.22, no.6, pp.847-854.
Ponting, J. and O'Brien, D., 2014. Liberalizing Nirvana: an analysis of the consequences of
common pool resource deregulation for the sustainability of Fiji's surf tourism industry. Journal
of Sustainable Tourism, Vol.22, no.3, pp.384-402.
Pulido-Fernández, J.I., Andrades-Caldito, L. and Sánchez-Rivero, M., 2015. Is sustainable
tourism an obstacle to the economic performance of the tourism industry? Evidence from an
international empirical study. Journal of Sustainable Tourism, Vol.23, no.1, pp.47-64.

8CRITICAL ISSUES IN HOSPITALITY AND TOURISM INDUSTRY
Sigala, M., 2017. Collaborative commerce in tourism: implications for research and
industry. Current Issues in Tourism, Vol.20, no.4, pp.346-355.
Timothy, D.J. ed., 2017. Managing heritage and cultural tourism resources: Critical essays,
Volume one. Routledge.
Zaitseva, N.A., Goncharova, I.V. and Androsenko, M.E., 2016. Necessity of changes in the
system of hospitality industry and tourism training in terms of import substitution. International
Journal of Economics and Financial Issues, Vol.6, no.1.