BHM305 Report: Emerging Trends in Hospitality at Luna Park, Melbourne

This report analyzes the emerging trends in the hospitality industry, focusing on Luna Park Melbourne. It examines the need for hospitality businesses to recognize trends as a continuous cycle of change. The report discusses the effects of megatrends, the sharing economy, sustainability, and tec...Read More

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Emerging trends in Hospitality

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Contents
Introduction......................................................................................................................................4
Discussion........................................................................................................................................5
Effects of megatrends on the hotel industry................................................................................5
Effects of sharing economy on the hotel industry.......................................................................6
Effects of sustainability in the hotel industry..............................................................................7
Effects of technology in the hotel industry..................................................................................8
Recommendations............................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The aim of this report is to analyse the hospitality industry and trends of the selected destination.
The destination selected in this assessment is Luna Park Melbourne. The report includes a brief
description of the hospitality industry related to Australia. The report includes the needs of the
hospitality business to identify the various trends as a continuous cycle of change. The impact of
various emerging trends described in this report. This impact also includes various areas like
social ethical and environmental implications. The emerging trends include the various types of
services provided to the tourists in the hospitality industry. The brief information related to the
hospitality industry is described in this report. The information on the new trends related to the
hospitality industry from the various sources are described in this report. The hospitality industry
of Melbourne needs to improve, as there are many negative impacts of the Melbourne hospitality
industry on Australian tourism.

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Discussion
Effects of megatrends on the hotel industry
There are several trends included in the process of the hospitality industry. Megatrends play an
important role in the overall process of the hospitality industry. The megatrends can change the
position of tourism as well as the hospitality industry (Buckley, et al., 2015). The destination
selected to analyse the megatrends is Luna Park Melbourne. The megatrends, which affect the
hospitality industry discussed as below-
 The new destinations emerging will develop the overall market of the hospitality industry
and this development can take place by the share of the international arrivals (Rauch,
2014) In Melbourne, the hospitality industry is increasing and developed due to the
international arrivals.
 The second main megatrend related to technology evolution, which is a game-changer.
The evolution of technology describes the process that how the industry operates.
Technology plays an important role in the hospitality industry because with the help of
technology all, the activities become easier and the goals of the industry can easily be
achieved.
 Health and a healthy lifestyle are also very important in tourism and the hospitality
industry. The tourist decision changed according to the healthy lifestyle of the people at
the selected destination (Leung, et al., 2013). The lifestyle of Melbourne is very healthy
so the tourists more attract towards the place and it increases the growth of the hospitality
industry.

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Effects of sharing economy on the hotel industry
The sharing economy is also one of the important things that affect the hospitality industry. The
sharing economy is a combined approach that used to acquire goods and services. This process is
a large part of the economy. As per the Forbes, the sharing economy defines that people turn to
one another for goods and services as compared to the large business companies. When a large
number of people purchased the services with sharing economy, only a small number of
population offers these services (Zervas, et al., 2017). This shows that the potential threat of
large business organizations comes from a small number of population.
The hospitality industry of Melbourne used in this process of the sharing economy, as the
selected destination is Luna Park Melbourne. The sharing economy also affects the demand of
the hotels as per the visitors. This process of sharing economy gives various opportunities to the
hospitality industry (Schor and Cansoy, 2019). These opportunities affect the overall growth of
the hospitality sector. These opportunities create a value of the hotels in the market of tourism.
One of the main opportunity is to expand the hotel room stock at marginal cost. The other
opportunity is to manage short-term rentals for local homeowners. The third opportunity is to
offer homeowners professional services. As short-term guests need rental services. These
opportunities give a wide impact on the overall hospitality industry (Williams and Horodnic,
2017). This process can enlarge the customer base and improves the profitability of the
organization or hotel.

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Effects of sustainability in the hotel industry
Sustainability is one of the important issue facing the current world. The hospitality sector gives
a great environmental impact on the consumption of energy and water. Sustainability gives a
great impact on the hospitality sector. From the past few years, several hotels increase their focus
towards the importance of sustainability in the hospitality sector (Xu and Gursov, 2015). All the
operations and activities of the hospitality sector relate to the sustainability sector. Sustainability
includes social economic and environmental impact. It is the most important issue facing the
hospitality industry. For various public and private sectors, sustainability and social
responsibility is the most important concern on which their success is based. Sustainability
defines that natural ecosystem provides support in life and provide resources to attain the needs
of the present and future generations. This is very beneficial for the overall organization,
especially for the hospitality industry. The proper sustainability in the hospitality industry
attracts tourists towards the destination.
The environment is continuously affecting the hospitality industry and attracts the tourists
towards a particular destination (Aragon-Correa, et al., 2015). As the environment of Melbourne
is familiar for the tourists, so this destination achieves more profit by the tourism process. The
several advantages gained by the sustainability are a better experience of guests, the efficiency of
cost, economic incentives, regulatory affairs, brand image and proper efficiency of cost.

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Effects of technology in the hotel industry
Various technologies directly affect the overall hospitality industry. As the technologies make
the activities easier and make the services attractive towards tourists as this can make better
profitability for the hospitality industry. Proper customer care and operations that is more
efficient and provides competitive advantage (Jones, et al., 2016). Overall, it improves the
technology in the hospitality industry. Due to the Luna Park, Melbourne hotel industry achieves
various technological aspects by which the overall business improves their productivity and
profitability. There are various applications of technology related to the hospitality environment.
Telecommunication development is also included in the main technological aspect. Technology
benefits like energy management and the safety of the guests. The several issues created in the
application of new technology and determine future trends. Customer expectations and
attractions grown by the use of technology in the hospitality industry (Xiang, et al., 2015). All of
this process is directly depends on the overall use of technology in the business process. By the
use of technology in the process, the expectations of consumers are also growing and the
hoteliers need to exceed the expectations of the consumers so they can increase the profits of the
organization and attracted towards their services. It is important to meet customer expectations,
as many of the guests need the proper technology in the process so that all the activities become
easier (Baum, 2015). This can make the hoteliers to face the competition and to attract new
customers in the organization.

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Recommendations
The several process and technologies need various recommendations to improve the overall
process of tourism and to attract new consumers towards the organization. Therefore, it needs to
manage the recommendations for the overall process of tourism and for the proper management
of the hospitality industry (Manhas and Tukamushaba, 2015). The better customer experience
various recommendations used to get in the business of the hospitality industry. Therefore, the
recommendations regarding the best experience of customers are described below-
 Track the performance in the market
The tracking of performance in the market is the best recommendation to optimizing the
guest and customer experience in the overall process of the hospitality industry. To track
the performance in the market, various tools are used to determine the net promoter score.
 Analyze feedback to increase the guest experience
The feedback used to increase the guest experience is very useful in the hospitality
industry as it increases the performance of the organization and attracts the consumers.
 Increase the incentives of staff for the satisfaction of guests
The increment in incentives provides proper satisfaction to the customers and increases
the profitability of the hospitality industry. The incentives make the staff aware regarding
the process and improve the overall process.
 Focus on the segment of customers for more benefits
The organization need to focus on the benefits of the customers, which is also, comes in
the recommendations in the growth of the hospitality industry, as the customers are the
key aspects of this process.

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Conclusion
This report includes an assessment related to the emerging trends in the hospitality sector. The
trends are very much important in the hospitality sector to increase the performance of the
organization. The assessment includes a brief description regarding the megatrends in the
hospitality sector, as these megatrends are responsible for the better performance of the
employees. The report discussed the impact of technology in hospitality as technology plays an
important role in the hospitality sector and technology used to make the activities easier. The
technology gives a wide and great impact on the hospitality organization, especially in
Melbourne. Luna Park in Melbourne is selected as a destination to analyze the hospitality
industry in the business. The report includes a discussion about the impact of sustainability in the
hospitality sector as it all related to the environment of the hospitality sector.

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References
Aragon-Correa, J.A., Martin-Tapia, I. and de la Torre-Ruiz, J., 2015. Sustainability issues and
hospitality and tourism firms’ strategies: Analytical review and future directions. International
Journal of Contemporary Hospitality Management, 27(3), pp.498-522.
Baum, T., 2015. Human resources in tourism: Still waiting for change?–A 2015 reprise. Tourism
Management, 50, pp.204-212.
Buckley, R., Gretzel, U., Scott, D., Weaver, D. and Becken, S., 2015. Tourism
megatrends. Tourism Recreation Research, 40(1), pp.59-70.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal of
Contemporary Hospitality Management, 28(1), pp.36-67.
Leung, D., Law, R., Van Hoof, H. and Buhalis, D., 2013. Social media in tourism and
hospitality: A literature review. Journal of travel & tourism marketing, 30(1-2), pp.3-22.
Manhas, P.S. and Tukamushaba, E.K., 2015. Understanding service experience and its impact on
brand image in the hospitality sector. International Journal of Hospitality Management, 45,
pp.77-87.
Rauch, R., 2014. Top 10 hospitality industry trends in 2015. Hotel, Travel & Hospitality.
Schor, J.B. and Cansoy, M., 2019. The Sharing Economy. In The Oxford Handbook of
Consumption (p. 51). Oxford University Press, USA.
Williams, C.C. and Horodnic, I.A., 2017. Regulating the sharing economy to prevent the growth
of the informal sector in the hospitality industry. International Journal of Contemporary
Hospitality Management, 29(9), pp.2261-2278.
Xiang, Z., Magnini, V.P. and Fesenmaier, D.R., 2015. Information technology and consumer
behaviour in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services, 22, pp.244-249.

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Xu, X. and Gursoy, D., 2015. Influence of sustainable hospitality supply chain management on
customers’ attitudes and behaviors. International Journal of Hospitality Management, 49,
pp.105-116.
Zervas, G., Proserpio, D. and Byers, J.W., 2017. The rise of the sharing economy: Estimating the
impact of Airbnb on the hotel industry. Journal of marketing research, 54(5), pp.687-705.