A Review of Racism Challenges within the Hospitality Industry of UK

This literature review examines the multifaceted challenges of racism within the UK hospitality industry. The paper delves into the concept of racism, highlighting its detrimental effects on both employees and customers. It explores various factors contributing to racism, including diverse worker backgrounds, customer interactions, neighborhood influences, and organizational policies. The review emphasizes the ethical implications of racism and identifies gaps in existing literature. The analysis covers how racism affects service quality, customer satisfaction, and employee engagement, ultimately impacting the industry's growth and sustainability. The paper also examines the historical context and evolution of racism within the industry, providing a comprehensive understanding of the issue. The paper concludes by summarizing the key findings and suggesting potential areas for future research, offering insights into mitigating racism and fostering a more inclusive environment within the hospitality sector.

Running head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT: AN ANALYSIS OF THE CHALLENGES RELATED TO
RACISM WITHIN THE HOSPITALITY INDUSTRY OF UK
Name of the Student:
Name of the Student:
Author’s Note:

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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Concept of Racism.....................................................................................................................3
3.0 Racism within the Hospitality Sector........................................................................................4
4.0 Factors influencing Racism within the Hospitality Sector........................................................5
4.1 Workers from Different Backgrounds...................................................................................6
4.2 Customers from Different Backgrounds................................................................................8
4.3 Neighborhood or Location.....................................................................................................9
4.4 Organizational Polices and Culture.......................................................................................9
5.0 Racism and Business Ethics....................................................................................................10
6.0 Literature Gap..........................................................................................................................11
7.0 Summary..................................................................................................................................12
References......................................................................................................................................13

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1.0 Introduction
As stated by Wang (2016), the hospitality industry is a very broad category of domains or
fields within the service industry and is primarily associated with food and beverages, lodging,
event planning, transportation, theme parks, cruise planning, airline, travelling and others.
Chiang and Saw (2018) are of the viewpoint that the hospitality industry had been in existence
since the traditional times however at the same time it needs to be said that the very meaning of
the words hospitality, guests and others have undergone a significant amount of change in the
present times. For instance, in the earlier times hospitality was considered to be a very novel act
and thus the hosts did not charge any money for the hospitality related services offered by them
(Hsiao 2017). However, in the 19th century it was seen that commercialization became an integral
part of the concerned industry and this in turn substantially changed not only the nature of the
hospitality industry but also the services offered by the same as well (Brewster and Brauer 2017).
This while substantially diversifying the range or services offered by the hospitality industry had
also significantly improved the quality of the same which in turn exponentially increased the
revenue earned by the concerned industry as well (Dashper 2019).
As a matter of fact, presently it is seen that the hospitality industry had become one of the
most important pillars of the national economy of the different nations of the world and along
with the direct economic contribution that it makes hospitality industry also supports the other
industries like tourism, entertainment and others (French 2018). In addition to these, the
development of the hospitality industry had also facilitated the infrastructural development of the
majority of the nations. However, at the same time it needs to be said that racism is an important
factor which is negatively affecting the growth as well as the quality of the services which are

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being offered by the corporations related to the hospitality industry (Alrawadieh, Karayilan and
Cetin 2019). For instance, it had adversely affected the manner in which the workers and the
customers from diverse background are being treated within the industry under discussion here,
the satisfaction as well as the loyalty of the customers, the service quality and others which in
turn had taken a negative toll on the growth as well as the sustainability of the hospitality
industry (Filimonau and Mika 2019). It is in this background that the researcher intends to
undertake a review of the past literature regarding the challenges related to racism within the
hospitality industry.
2.0 Concept of Racism
Ro and Olson (2020) are of the viewpoint that the people from different race, ethnic
backgrounds, cultural backgrounds and others posses certain unique characteristic features or
attributes which in turn distinguish them from the people related to other race, ethnic group,
social or cultural background. Adding to this, Kikon and Karlsson (2020) have noted that the
problem arises since it is seen that the people related to a certain race or ethnic background or
social or cultural background hold the idea that they are superior in comparison to other people
and this in turn had given rise to the issue of racism which in turn is an important issue that the
world has been facing since the traditional times. In simple words, racism can be defined as the
discrimination, stigmatization, prejudice, antagonism and others which are directed towards the
members of a particular race on the basis of the perceptions of superiority held by the people of
the other races (McGoldrick and Arrowsmith 2017).
More importantly, in contrast to the earlier times wherein it was seen that race or for that
matter the ethnic background of the individuals was the root cause of the racism that they had to

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face within the societal framework presently it is seen that individuals have to racism on the
basis of their physical attributes, their sexual orientation, their lifestyle and others (Zainol et al.
2016). In this regard, it needs to be said that racism while narrowing down the growth or
development opportunities which are available to the individuals also leads to the ineffective
fulfillment of the different basic psychosocial needs of the individuals (Albayrak 2019). This in
turn had substantially reduced the quality of life of the individuals who are the victims of racism
and thus it becomes for the national government of the different nations of the world to take the
help of adequate measures for the resolution of this particular issue faced by the individuals
within the societal framework.
3.0 Racism within the Hospitality Sector
As discussed by Hudson et al. (2018), the different business activities of the hospitality
industry belong to the category of the service sector and the growth or the development prospects
of the different corporations related to the hospitality sector substantially depends on the
effectiveness or the efficiency with which they are being able to cater to the needs of customers.
Adding to this, Park et al. (2017) have noted that the hospitality industry has perhaps the largest
customer base because of the wide range of services which are being offered by the same and it
is seen that the customers of the concerned industry are industry are almost walks of life. More
importantly, in the recent years it had been seen that he hospitality industry had been able to
substantially modify the nature or for that matter the kind of services which are being offered by
it on the basis of its diverse clientele (Dashper 2019). Furthermore, it had also been seen that in
order to offer effective services to its diverse clientele the corporations related to the hospitality
industry had also start to recruit employees from different backgrounds so as to improve the
quality of services which are being offered to its customers (Qu, Jo and Choi 2020).

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However, this in turn had given rise to the issue of racism within the hospitality industry
which presently is adversely affecting the growth of the concerned industry. For instance, more
than 70% of the black skinned people had complained of being subjected to racism while
availing the services offered by the hospitality industry in comparison to 38% white skinned
people (Alrawadieh, Karayilan and Cetin 2019). In addition to this, it is seen that the
employment rate for the ethnic minorities is only 62.8% within the hospitality industry compared
to 75.6% for white people and this condition had failed to improve over the years despite the
strict mandates of the national government of different nations and also the international
committees like United Nations and others (Kikon and Karlsson 2020). More importantly, it had
also been seen that the customers actively claim that they have been discriminated within the
different hotels, restaurants, resorts and others and because of this they their satisfaction level
regarding the services offered by the hospitality industry had substantially diminished. This
while enhancing the brand switching tendencies of the customers related to the industry under
discussion here had also substantially reduced the sales volume of the concerned industry and
thereby the profitability or for that matter the financial returns earned by the same (Uysal,
Temizkan and Taslacı 2017). In the light of these aspects, it can be said that racism is an
important challenge or issue that the hospitality industry is presently facing and if not mitigated
or resolved adequately can adversely affect the growth as well as the sustainability of the
concerned industry.
4.0 Factors influencing Racism within the Hospitality Sector
In the present times numerous customers related to the hospitality industry and also the
workers part of the corporations associated with the concerned industry had also complained
about the same. The increase in the amount of racism that the customers and the workers within

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the hospitality industry can be pinned down to various factors or reasons and some of the most
important ones in this regard are discussed below-
4.1 Workers from Different Backgrounds
Segovia-Pérez et al. (2019) are of the viewpoint that the hospitality industry is one of the
largest employers of the world and in the year 2017 the hospitality industry offered employment
to more than 313 million people from the different parts of the world. Adding to this, Brewster
and Brauer (2017) have noted that the wide range of services which are being offered by the
industry under discussion here had made it imperative for the concerned industry to take the help
of large number of workers for delivering the same to its customers. More importantly, unlike
the earlier times presently it is seen that people from different ethnic backgrounds, race, social or
cultural backgrounds and others are increasingly taking the help of the services which are being
offered by the concerned industry (Hsiao 2017). However, the issue arises since in the earlier
times the majority of the customers that the industry used to get were from a specific segment of
the population and thus the services offered by the concerned industry had been designed by
taking into consideration this particular aspect. This is no longer feasible for the corporations
related to the hospitality sector to do because of the expansion of the nature as well as the type of
their customer base and thus they are increasingly recruiting employees from different ethnic,
social and cultural backgrounds for delivering the required services to the customers (Chiang and
Saw 2018). This can be explained on the basis of the fact that the hospitality corporations are
using the cultural insights of these workers to improve the quality or the nature of the services
which are being offered by them and also the marketing campaigns that are being used for the
promotion or the advertisement of the same (Boxall, Nyanjom and Slaven 2018). This while

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helping the corporations to positively influence the buying behavior or for that matter the attitude
of their customers have also helped them to attain the desired level of growth as well.
In addition to these, it had also been seen that the different corporations related to the
hospitality industry have been able to amend their service delivery style as per the kind of the
customers that they get (Elsayed and Daif 2019). This personalized service delivery system
which is presently being used by the different corporations related to the hospitality sector had
helped them to not only earn the satisfaction as well as the loyalty of their customers but also
enhance their profitability as well (Grant 2016). However, at the same time it needs to be said
that despite the different benefits offered by the workers from the various backgrounds they have
also substantially enhanced the racism experienced by the workers working in the concerned
industry as well (Vassou, Zopiatis and Theocharous 2017). For instance, the workers from
certain specific race or background think that they are superior to their colleagues whereas the
others believe that they are and this in turn had adversely affected the relation which exists
between them. This while reducing the engagement level among the different workers had
enhanced their racist behavior towards each other which in turn had taken a negative toll on the
working environment which exists within the corporations related to the hospitality industry
(Goh and Lee 2018). This racism or discrimination becomes apparent not only when the pay gap
of the different workers related to diverse background within the same corporation is being taken
into account or when the promotion, career development and other kinds of opportunities are
being taken into consideration. As a matter of fact, it is seen that numerous workers who are
related to the ethnic minority groups and others have complained that despite having all the
qualifications and working hard for the sake for the corporation they are not being treated fairly
by the corporations and also not provided adequate career development or growth opportunities

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by the corporation that they work for (Hebl, Cheng and Ng 2019). Thus, it can be said that the
diversity of workers who are a part of the contemporary hospitality industry is an important
factor which had directly contributed towards the increase of racism in the concerned industry.
4.2 Customers from Different Backgrounds
Kim, Bianchi and Bosch (2020) are of the viewpoint that the customers from the different
backgrounds who avail the services offered by the hospitality industry had also directly
contributed towards the enhancement of racism within the concerned industry. Adding to this,
Hebl, Cheng and Ng (2019) have noted that there are various customers even in the present times
who are not comfortable availing the hospitality services from the individuals related to the
ethnic or social or cultural background which is substantially different from them and thereby
often indulge in the kind of behavior which are highly offense for the staff of the corporations.
On the other hand, it had also been seen that the staff of the corporations related to the hospitality
industry also indulge in racist or discriminatory practices which had also contributed towards the
enhancement of racism within the hospitality industry (Jung and Yoon 2018). For instance, it is
seen that the workers rather than amending their service delivery style on the basis of the kind of
customers that they are dealing often indulge in racist actions or take the help of racism words or
vocabulary which are extremely offensive for the customers. This in turn had given rise to the
situation wherein it is seen that the customers have started to avoid the hotels, resorts and others
related to the hospitality industry wherein they are not being treated adequately or respectfully by
the staff (Vettori and Nicolaides 2016). In this relation, it needs to be said that this had adversely
affected the satisfaction level of the customers and thereby the revenue earned by the
corporations as well. This can be explained on the basis of the fact that the profitability or the
revenue earned by the corporations related to the hospitality sector substantially depends on the

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effectiveness with which they are being able to treat the customers (Chahal and Poonam 2017).
In the light of these aspects, it can be said that it had become important for the corporations
related to the hospitality industry to address the issue of racism because of the damage that it is
causing to their profitability or growth.
4.3 Neighborhood or Location
The location or the neighborhood in which a particular hotel, restaurant or the
corporations related to the hospitality industry are located is an important factor which
determines the extent of racism that the workers or the customers related to the same would have
to face (French 2018). For instance, if a restaurant is based in the locality wherein the population
of the white skinned people is high and if the majority of the workers or the customers of the
restaurant are black skinned people or the people from the different ethnic minorities then it is
likely that they would have to face a substantial amount of racism or discriminatory behavior
from the people of the neighboring region. On the other hand, if the neighborhood or the locality
in which the restaurant is operational is a multicultural one and open to different kind of people
then it is likely that the workers or for that matter the customers of the concerned restaurant
would not have to face any substantial amount of discrimination or racism (Ro and Olson 2020).
In the light of these aspects, it can be said that the neighborhood or for that matter the locality in
which a corporation is based substantially influences racism within the concerned corporation.
4.4 Organizational Polices and Culture
Chiang and Saw (2018) are of the viewpoint that the organizational culture and the
organizational policies which are being followed within a particular corporation are important
factors that substantially influence the prevalence of racism within the same. Adding to this,
Hudson et al. (2018) have noted the corporations are required to ensure the fact that they have

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policies or regulations in place which will not only prohibit racism or discriminatory behavior on
the part of the workers but also the management team or the other teams of the corporation
would also refrain from indulging in such behavior towards the workers. This is important since
it would facilitate the inculcation of the kind of organizational or for that matter workplace
culture wherein the workers would not have to face racism and thereby would be able to perform
as per their maximum potential and make a positive contribution towards the overall
organizational growth or development (Boxall, Nyanjom and Slaven 2018). More importantly,
the corporations related to the hospitality sector also need to formulate the kind of organizational
policies which will strictly prohibit the discrimination of their customers on the basis of their
race, ethnic background, the social or the cultural background to which they belong and others
(Elsayed and Daif 2019). In the light of these aspects, it can be said that the organizational
policies or the culture which is being followed by the corporations is an important factor which
influences the prevalence of racism or discrimination within the same.
5.0 Racism and Business Ethics
According to Segovia-Pérez et al. (2019), the issue of racism is not only unethical but
also derogatory when the impact that they have on the individuals against whom such actions are
being directed is taken into consideration. Adding to this, Jung and Yoon (2018) have noted that
as per the Utilitarianism theory of ethics the corporations are required to indulge in the kind of
actions which are likely to cause the maximum amount of benefit to the maximum number of
individuals. More importantly, this theory of business ethics is also being supported by the
stakeholders theory of management which states that the business corporations are required to
indulge in the kind of actions which are likely to maximize the interests or for that matter the
benefits which are being offered to the stakeholders (Kim, Bianchi and Bosch 2020). However,

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when the issue of racism within the hospitality industry is being taken into consideration it
becomes clear that racism neither is intended to for the benefit of the stakeholders related to the
concerned industry nor it helps the corporations related to the industry under discussion here to
maximize the interests of their stakeholders. As a matter of fact, racism adversely affects the
individuals towards whom it is directed and thus it becomes all the more important for the
corporations related to the hospitality industry to take the help of different measures which will
enable them to resolve the issue of racism.
6.0 Literature Gap
The researcher while undertaking an initial literature search on Google Scholar found that
a substantial amount of research work had already been conducted on the impact of racism on the
hospitality industry and also the challenges posed by the same. As a matter of fact, Vassou,
Zopiatis and Theocharous (2017) have noted that racism is an important issue which is adversely
affecting the growth as well as the sustainability of the hospitality industry and thus becomes
important for the corporations related to the concerned industry to take the help of different
measures for the resolution of this issue. However, at the same time it needs to be said that the
researcher was not being able to find numerous articles focusing on the challenges related to
racism within the hospitality industry of the United Kingdom. In addition to these, it had been
seen that the different past scholars have treated the research topic under discussion here from
the perspective of profitability, financial performance, the damage that it causes to the
corporations related to the hospitality industry and others. These in short are the literature gaps
that the researcher intends to cover through this study. Thus, it can be said that the future
researchers conducting research on similar topics or some other related topics would have the
opportunity to use this research as a framework.