Analysis of Critical Issues Impacting the Hospitality Sector: Report

This report delves into the multifaceted challenges confronting the hospitality sector, encompassing legal issues arising from cloud technology usage, particularly data privacy concerns and compliance with regulations like the Data Protection Act. It also addresses the impact of hygiene issues on customer satisfaction, emphasizing the importance of cleanliness and food safety. Furthermore, the report highlights the problem of employee shortages, analyzing its effects on service quality and brand reputation, especially in Australia, and proposes solutions such as vocational training and incentives. The report underscores the significance of customer satisfaction, advocating for benchmarking and staff training to enhance service delivery. Finally, the report offers recommendations, including policy implementation, data encryption, staff training, and the use of feedback surveys, to mitigate these challenges and improve overall performance within the hospitality industry.

Report

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
legal issues..............................................................................................................................1
Hygienic issue........................................................................................................................2
Employee shortage.................................................................................................................3
Customer satisfaction.............................................................................................................3
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
REFERNCES...................................................................................................................................8

EXECUTIVE SUMMARY
The purpose of this report is to determine the issues which is faced by the managers using
cloud technology and some hygienic issues in hospitality sectors. Further it also identify the
issues of employee shortage as well as customer satisfaction in the hotels. Report also provide
the recommendation in order to overcome the issues which are faced by the peoples of different
sectors.
INTRODUCTION
The report main aim is to provide the recommendation of the different issues which are
faced by the peoples of different sectors. Such that, as the world is now becoming digitalised and
managers of the company are faces some legal issues which are arises after the frequent of cloud
computing and in that cases they faces issues of sharing information and have to follow the data
Protect Act. The report methodology is secondary in which already published journals and
articles are used to support the evidences. Further another issue is related to hygienic aspect
which creates negative impact upon customer satisfaction in the hospitality sectors. Even due to
shortage of employees many companies do not operates its best services to their customers and
as a result customers are not satisfied due to low quality of offered services.
MAIN BODY
legal issues
According to AlSudiari and Vasista, (2012) as the world is now become a digitalized and
companies opt different services in order to build their brand image in this competition sector.
After introducing and implementing cloud technology, managers of the company faces some
issues regarding the sharing of data. Many researcher shows that there are various legal
obligations are associated with the usage of cloud computing and the company who are dealing
with the technologies must follow the obligations related to Data Protection Act. The main issues
arises by using this technology into working place is such that the increased use of cloud
computing services such as Gmail creates some issues of privacy concern and even 73 percent of
researches shows that cloud services providers are target data breaches. And this services are not
compliances with the regulatory mandates and as a result many company breaches the laws.
Therefore, security and availability is the major issues which many companies in Australia faces
problem related to usage of cloud computing technology. Sharing information without a warrant
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is the major issues faces by the people such that many cloud providers can even share the
information of an individual with the third parties without the permission Marett, (2018). As per
the research, many researcher have also explores many legal obligations that are associated with
the use of cloud computing within the organizations.
Hygienic issue
In the hospitality sector, the hygienic is one of the biggest issues faces by the customers
and as a result it creates negative impact upon them. It has been proved that food safety and
hygiene are the main parts of the hospitality sectors. Therefore, companies who working in the
hospitality sectors must have to comply with hygiene and food safety legislations when they are
offering services to their customers. Hygienic is the biggest issue which many companies who
work in the hospitality sector perform Adams, (2013). For example, in hotels due to an in-
efficient hygienic issues many customers did not even stay and even hygiene and cleanliness are
also ranked as number 1st for choosing hotel as per the view of customers. In hotel industry the
quality and cleanliness of the wash room facility should be superior but many hotels did not
maintain the quality of services which they offered to their customers and as a result, they faces
issues regarding the hygiene. This issues mainly found in restaurants, hotel and hospitals because
of the shortage of employee, owners and managers do not maintain the quality of services which
are offered and as a result many customers disappointed. In addition to this, this further creates
negative impact upon the profit of the company and did not sustain their brand image in market.
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Employee shortage
Employee shortage and skill shortage is the another issues which is faced by the
hospitality sectors and as a result, it affect entire profitability ratio. Due to increasing competition
and the requirement of skilled staff, issue related to employee shortage is increases day by day. It
has been analysed that due to shortage of skilled labour market, the hospitality industry faces
issues of hygiene as well as technology. Since the quality of employees hired has a direct impact
upon the brand reputation, revenue as well as overall labour cost. In Australia, there are many
hotels who faces issues related to employee shortage because of emerging labour market again.
As a result the sector is not contributing their portion in the economy of the country
Kandampully, Zhang and Jaakkola (2018). Hence, employee shortage is one of the complex
labour market phenomenon and consider as one of the most serious concern for the industry
which needs a proper attention to raise it again.
Customer satisfaction
If any company who work in a hospitality industry then they must pay attention towards
the customers services. Customer satisfaction is the another issues faced by the hospitality
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Illustration 1: Shortage of skilled labours

sectors. For example, Lake Kivu Serena Hotel where the customers feel awful service in the
terms of management, facilities, restaurants etc. Hence this example shows that customer
satisfaction is must in every hotels which needs to be attention in order to attract wide range of
customers. Customer loyalty must be attained by the the hotels to improve the the quality of
services which are provided to their customers Mubiri, (2016). In order to raise their company's
overall profit it is necessary for the hotels to keep satisfying the customers be providing them
best quality of services. It has been analysed that if the customer will remain satisfied then it will
automatically enhances the production level as well as profitability of the company which further
leads to sustain its brand image in market. Therefore, customer satisfaction is the major issue
because it directly affect company's overall position as well as performance.
CONCLUSION
By summing up above report it has been concluded that hospitality sector faces many
issues such as hygienic issues which is consider the major issues because it is the main priority
from the point of view of customers. Further report also concluded that employee shortage or
skilled employees is the another problem faced by the hospital sector which direct affect
company's production level. Lastly customer satisfaction which needs to be pay proper attention
because it directly creates impact upon the company's overall profitability as well as
performance. Report also shows that after implementing cloud computing into the working area
which further creates some issue such that providers passes or share the information without
permission to the third parties and as a result they may miss use the information. These all issues
needs to be overcome and for this, report also provided some recommendation.
RECOMMENDATIONS
 In order to overcome the problem of legal issues of cloud computing, company provider
needs to apply the Data Protection Act which states that the sharing of data or
information to another or third party is illegal and if any person or a company done this,
then they will have to pay penalty Keogh, Gordon and Marinovic, (2018). In Australia
as per the Privacy Act, 1988 which deals or regulates how personal information are
handled. This act basically includes 13 privacy principles which should be apply to some
private sector organization in order to keep confidential all the information of the person.
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 As many cloud providers faces problem related to the transfer the information to third
party then it is quite necessary for the companies to follow Data Protection act and
Privacy act, 1988 which protect the information privately and keep them confidential
Bailey, Harris and Jennings, (2018).
 Another solution is that provider needs to establish clear and relevant policies and they
can encrypt the data which are stored within the cloud in order to prevent the data.
Cryptographic encryption is the another best option which further ensures that the data is
in safe hands or not Dimitrova and Brkan, (2018).
 In order to overcome the hygienic issues, hospitality sector should provide some straining
sessions to their staff so that they will understand the importance of cleanliness. Because
the sanitation and cleanliness is the first preference which attract customers towards
them. Manager or the owner of the firm should makes sure that the toilets and floors
should be clean twice a day Murray, (2018). Employees should also wear the gloves
while doing work in order to maintain cleanliness.
 Walls and floors of every object in a restaurants or in hospitals should be clean in order
to make it good environment. In restaurant, they should also follow the health and safety
law and provide the services which attract customers towards them. The offered food
products should be healthy and safe and even the area around the object should also be
clean Zhu, Freeman and Cavusgil, (2018).
 Training is the best option which help employee's of restaurants, hotels and hospitals to
keep the environment healthy and fresh so that it will help to build a brand image in
market. As hygienic aspect place the high level of impact upon customer satisfaction
therefore, it is quite essential to keep the environment clean.
 Vocational Training and Funding: Under this system, a trainer provide special training
to their employees in order to reduce the shortage of skilled employees. Vocational
training help to provide training sessions to different and current employees by using an
effective funded recruitment programs and there are various subsidies are also available
which help to recruit direct in a training program. This method will further help to
overcome the situation of skilled employee shortage.
 By reducing the working hours and offer different incentives to their employees will help
to cope up with the situation of skilled employee shortage. Reward system is the another
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solution to enhance their company's productivity Boxall, Nyanjom and Slaven, (2018).
This is the system which helps to re-growth the entire system and further it help to
maximizes their actual production level.
 Employee turnover rates must be reduced and it can be consider as an alternative solution
to overcome the issue of skilled employee shortage. By providing training session in
order to put their extra efforts into the welfare of the system. In training session, company
must provide training related to company's operational field in order to let them know
about the company's activities (Overcome skill shortage in hospitality industry, 2018).
After providing training sessions, manager must review the staff productivity level within
two months which shows the effectiveness of their performance.
 In order to overcome the customer satisfaction, benchmarking is the strategic tool which
enhances the service which are provided to their customers. In hotels, customer's loyalty
is the most important aspect which needs to be kept in mind. Benchmarking is the tool
which is used to evaluate the effectiveness of the employees who working in a company.
 In hotels, employees as well as management staff should always pay attention to services
which are provided to their customers and through training session, employees
productivity level should also be enhanced so that it will help them improve the services.
After providing training session, managers should take review through benchmarking
which help to show the effectiveness of the employees. To know the training program
effectiveness, staff feedback surveys should also be conducted because through feedback,
they will easily know that the training programs are fruitful for them or not.
 By conducting SMART goals which are as shown below:
S M A R T
Conducting staff
survey reports in
every three
months in order
to identify the
main training
skills.
To measure the
staff training
sessions,
company should
uses
benchmarking as
a strategic tool in
order to
Taking review of
staff performance
before and after
the training
session will help
to identify that
the goals of
conducting
Review the
complaints of
customers before
and after the
training programs
which comes to
know that the
performance is
Staff feedback
should be
conducted in
every two months
which help to
know the
weakness as well
as strength of the
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determine the
effectiveness.
training sessions
are achieved or
not.
increases or not. training
programs.
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REFERNCES
Books and Journals
Mubiri, B., J., (2016). Customer Satisfaction in Hotel Services. Journal of Bachelor’s Thesis.47.
pp.
Adams, A., 2013 Food safety: the final solution for the hotel and catering industry?", British
Food Journal. 97 (4). pp.19-23.
AlSudiari, M. A. and Vasista, T. G. K., 2012. Cloud computing and privacy regulations: an
exploratory study on issues and implications. Advanced Computing. 3(2). p.159.
Bailey, J., Harris, T., & Jennings, P. (2018). State of the environment reporting in Western
Australia: law, land and beyond. Australasian Journal of Environmental Management, 1-
14.
Boxall, K., Nyanjom, J., & Slaven, J. (2018). Disability, hospitality and the new sharing
economy. International Journal of Contemporary Hospitality Management. 30(1). 539-
556.
Dimitrova, A., & Brkan, M. (2018). Balancing National Security and Data Protection: The Role
of EU and US Policy‐Makers and Courts before and after the NSA Affair. JCMS: Journal
of Common Market Studies. 56(4). 751-767.
Kandampully, J., Zhang, T., & Jaakkola, E. (2018). Customer experience management in
hospitality: A literature synthesis, new understanding and research agenda. International
Journal of Contemporary Hospitality Management.30(1). 21-56.
Keogh, K., Gordon, C., & Marinovic, P. (2018). Cyber security: Global developments in cyber
security law: is Australia keeping pace?. LSJ: Law Society of NSW Journal, (42), 82.
Marett, P. (2018). Information law in practice. Routledge.
Murray, W. C. (2018). 3. A motivated workforce: the shifting factors that drive people to work
in the hospitality industry. Handbook of Human Resource Management in the Tourism
and Hospitality Industries. 67.
Ram, Y. (2018). Hostility or hospitality? A review on violence, bullying and sexual harassment
in the tourism and hospitality industry. Current Issues in Tourism. 21(7). 760-774.
Zhu, Y., Freeman, S., & Cavusgil, S. T. (2018). Service quality delivery in a cross-national
context. International Business Review.
Online
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Overcome skill shortage in hospitality industry. 2018. [Online] Available through:
<https://www.checkit.net/overcoming-skills-shortages-in-hospitality/>.
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