External Environment Analysis for Tourism and Hospitality Management

This report delves into the critical role of external environment analysis in tourism and hospitality management. It emphasizes the positive relationship between effective planning skills of managers and the success of destinations, highlighting the need to understand the living standards of foreign tourists. The report discusses how external factors such as prices, economic climate, and competition influence demand, innovation, and productivity. It also explores the importance of qualified employees and training programs. Furthermore, the report uses examples like Banja Vrucica's challenges and underscores the need for managers to formulate long-term goals and strategic decisions to gain a competitive advantage. The report references several sources and offers valuable insights into the dynamic nature of the tourism and hospitality industry.

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Tourism and Hospitality Management
Name
Date of Submission

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Comments: 1 new comment
Posted by: XYXYY, on Saturday, 14, April, 2018 at 23:16:33
Tourism is an international industry which needs to take care of the external environment. There
is a positive relationship between proper planning skills by tourism and hospitality managers,
and the success of these industry for various destinations (Ingram, 2006). The managers should
thus discern the living standards of foreign tourists that may differ from the home standards. This
is because there are no organizations which can exists without the proper consideration of the
external environment. The tourism and hotel industry management cannot control demand for
these services, since the demand is affected by the external environment like prices, economic
climate, and competition. The external environment encourages innovation and productivity of
managers, hence mediating between performance, market orientation and total quality
management (Zhang and Enemark, 2016). As Quin et al., (2015) argues, the assumptions and
beliefs of the managers affects the decisions that they make, and the manner in which they
perceive the external environment.
Since the hospitality and tourism industry is ever changing and becoming competitive,
understanding the external environment is very important for the managers. The external
environment enables managers to develop a realistic strategic plan, for the business to have a
competitive advantage. In meeting the goals of a tourism and hotel business, managers should
have qualified and experienced employees (Arif and Hossin, 2016). This enables mangers to
offer training and development programs to enable employees offer top quality to tourists and
guests.

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Many organizations face problems in dealing with the changes in tourism especially the Spa
tourism. This is reflected by the Banja Vrucica’s inability to meet the modern tourism demands
(Milinkovi et al., 2018). Analysis of external environments is important because tourism and
hotel managers can formulate long-term goals and make decisions based on strategic
management processes.
Based on my work experience in the hotel, the managers need to avoid possible threats, and take
advantage of available opportunities for the business to grow well.

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Reference List
Arif, T.M.H. and Hossin, M.Z., 2016. “A comparative analysis of internal and external
environments between Hotel Hyatt, UK and Hotel The Cox Today, Cox’s Bazar, Bangladesh”.
Ingram., H. 2006. Hospitality and tourism; international industries experiencing common
problems. International journal of contemporary hospitality management, 7 (7), pp. 44-52.
Milinkovi., Z, Simovic., S, Ljubojevic., J, and Pantelic., K. 2018. DE GRUYTER. Strategic
analysis of the external and internal environment of sport tourism at the “Banja Vrucica” spa.
Retrieved from https://www.degruyter.com/view/j/pjst.2017.24.issue-4/pjst-2017-0026/pjst-
2017-0026.xml, doi.org/10.1515/pjst-2017-0026
Quinn, RE, Bright, D, Faerman, SR, Thompson, MP & McGrath, MR 2015, Becoming A Master
Manager: A Competing Values Approach, 6th edn, John Wiley & Sons Inc., New York.
Zhang, J. and Enemark, A.E., 2016. Factors Influencing Business Performance in Hotels and
Restaurants. Asia-Pacific Journal of Innovation in Hospitality and Tourism, 5(1), pp.1-20.