Analysis of Micro and Macro Forces Affecting Tourism and Hospitality

This report delves into the micro and macro environmental forces influencing the tourism and hospitality industries. It defines micro forces, such as competitors, the organization itself, suppliers, the market, intermediaries, and customers (COSMIC), and macro forces including economic, legal, political, social, demographic, natural, and technological factors. The report provides examples of how changes in the macro environment, like the China floods, have reshaped tourism offerings, forcing budget-friendly packages. Additionally, it examines how changes in the micro environment, such as JW Marriott's analysis of the Beijing market, have influenced marketing decisions, including pricing strategies. The report references key literature to support its findings, offering a comprehensive overview of environmental impacts on the tourism and hospitality sectors.

Running head: MICRO AND MACRO FORCES AFFECTING TOURISM AND
HOSPITALITY
Micro and Macro Forces affecting the tourism and hospitality
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Author Note

1MICRO AND MACRO ENVIRONMENT FORCES TOURISM AND HOSPITALITY
Micro and macro forces:
The surrounding and the nearby environment under which the organization is operating
are called the micro force. Micro force means the general or common environment factors that
affect most of the business organizations. The term COSMIC stands for competitors,
organization itself, suppliers, market, intermediaries and customers (Ritchie & Crouch, 2003).
These factors affect the marketing decision within a tourism, events or hospitality organization.
The macro forces that affect the business of tourism or hospitality industry include the
factors such as the economic, legal, political, social, demographics, natural forces and changes in
technologies.
Example: Changes in cultural taste or habit, change in government policy, changes in the rate of
interest and also change in the weather when it turns disastrous are damaging.
A change in macro environment that changes the way of tourism, events or hospitality:
One current example of how a change in the macro environment changed the way
tourism, events for hospitality industry started to offer the products to consumers are that of the
floods that took place in China. The China tourism board after the recent flood has started
packaging their products of travel to their customers in a completely different way (Brouder &
Eriksson, 2013). Previously the travel industry in China used to make packages which were very
luxurious and affordable only by the upper class of people but after the floods the macro
environment influence on the market has forced the tourism board and the tourism industry in
China to make pocket friendly and budget friendly packages for all kinds of tourist who are in a
budget so that they can easily travel all over China without pinching their pocket too much. It is
because of the floods and the damage caused by the floods that many tourist destinations were

2MICRO AND MACRO ENVIRONMENT FORCES TOURISM AND HOSPITALITY
destroyed so the tourism industry in China also had to map a new itinerary with new tourist
destinations at a cheaper budget for all those travelers who are middle class and prefer to travel
in a budget (Sharpley, 2018).
A change in micro environment in a given organization:
How a change in the micro environment changed the way tourism events for hospitality
industry started to offer the products to consumer are the example of JW Marriott chain of
Hotels. They offer a wide range and wide variety of hospitality services and luxury services to
the customers at not a very affordable rate by the middle class people. When they opened the
new hotel in Beijing, JW Marriott after analyzing the data that they had collected which
suggested that most of the people living in Beijing, China are upper class, had decided to revise
their rates which was only targeting the middle and the upper middle classes for their hospitality
services. They had increased the rates of the rooms and tourism travel packages and also
increased the price of their buffet menu in their in-house restaurants (Jamal, Camargo & Wilson,
2013). Without taking these decisions to change certain factors in the organization which were
directly affected by the micro environment influence, it would have been very difficult for JW
Marriott to survive in Beijing as they have a very major competition with Pangu hotel who was
one of the market leaders of the area in terms of hospitality.

3MICRO AND MACRO ENVIRONMENT FORCES TOURISM AND HOSPITALITY
References:
Brouder, P., & Eriksson, R. H. (2013). Staying power: What influences micro-firm survival in
tourism?. Tourism Geographies, 15(1), 125-144.
Jamal, T., Camargo, B., & Wilson, E. (2013). Critical omissions and new directions for
sustainable tourism: A situated macro–micro approach. Sustainability, 5(11), 4594-4613.
Ritchie, J. B., & Crouch, G. I. (2003). The competitive destination: A sustainable tourism
perspective. Cabi.
Sharpley, R. (2018). Tourism, tourists and society. Routledge.