Challenges and Solutions in the Worldwide Hospitality Sector Report

This report provides an overview of the issues affecting the worldwide hospitality industry. It examines challenges such as employee retention, customer loyalty, and the impact of information technology and emerging markets. The report highlights the importance of addressing these issues to improve business performance and gain a competitive advantage. Key areas discussed include the impact of globalization on human resources, the importance of customer satisfaction and service quality, and the need to leverage technology for enhanced guest experiences. The report also addresses the significance of employee training, the challenges of managing online reviews, and the overall need for hospitality businesses to adapt to changing customer expectations and technological advancements to ensure long-term success. Furthermore, it emphasizes the importance of employee empowerment and the need to manage work pressure to improve service quality and employee well-being. The report suggests that providing quality services is essential for maintaining customer loyalty and that businesses must focus on providing a positive experience to ensure customer satisfaction and retention.

The worldwide
hospitality industry
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Table of Contents
Introduction......................................................................................................................................3
Issues in hospitality sector...............................................................................................................3
Conclusion.......................................................................................................................................7
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Introduction
Hospitality sector is one of the growing sectors in the service industry that provide wide
range of services to its customers. Due to implementation of new technologies there are many
changes take place in the hospitality sector. Further demand and expectation of customers is also
increase which become important for companies to fulfil on time. There are wide range of issues
which are faced by hospitality sector in present time. It become easier for company to resolve all
the issues so that they can easily gain profit. The present report will focus on wide rang of issues
faced by hospitality industry at way to resolve them. This report focus on employees retention,
customer loyalty, information technology and other issues.
Issues in hospitality sector
Hospitality industry is broad category of fields within the service industry that includes,
lodging, theme parks, event planning etc. It is considered as a dynamic industry which is ever
changing as a outcome of various internal factors. It is become one of the competitive that ever
before. There are some companies who mostly fail whole some survive in competitive market.
Aragon-Correa, Martin-Tapia and de la Torre-Ruiz, (2015) argued for the successful company
need to hire, manager and develop resources which help in gaining competitive advantage.
According to the Martínez and Nishiyama, (2017), due to increase in the competition there are
many issues which are faced by the companies such as retention, social responsibility, healthy
living etc. There are many of changes in issues is bring due to globalisation. For instance, in the
case of HRM, globalisation lead to bring diversity in the human resources. There are large
number of people who travel from one place to other and bring changes in the tourism. It is
essential for business to manage all these issues in order to success in their day to day operations.
Moutinho and Vargas-Sanchez, (2018)argued that companies who are operating in hospitality
sector should focus on brand, human resources, information communication technology and
emerging markets. These all are considered as primary determinant in the success of these firms.
According to the Fedoruk and Lumley, (2015), in hospitality industry employee turnover is
become one of the main challenges. The industry is facing issues dur to high level of staff
turnover that bring outcomes to high direct expenditure and intangible costs. According to the
opinion of Casado-Díaz and Simón, (2016), turnover is the outcome of various aspect for
instance poor working condition, poor supervision, job dissatisfaction and lack of commitment
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toward the job. It is analysed that human resources management face difficulty due to high
turnover rate. Condition of large hotels is worst as compared to small hotel. They are just hiring
people in order to cover the turnover situations. There are many companies who are not
providing any type of benefits to the employees due to which they switch other brands. Due to
lack of benefits and appreciation lead to impact make them dissatisfy from the job. Along with
this, most of the employees are unable to use new technologies implemented by the firm due to
which they unable to perform in an effective manner. According to the view of Campos-Soria,
García-Pozo and Sánchez-Ollero, (2015) customers are the key of success in hospitality
industry. It is essential for the firm to focus on enhancing customer satisfaction level so that they
can be retained for longer time. In this quality of services play important role in order to make
customer loyal toward the firm. It is analysed that, hotels are not providing appropriate facility to
customer as per their requirements. Employees are not much trained in order to provide quality
services to customers due to which it become tough for companies to gain customer loyalty.
There is wide range of factors that can impact the customer loyalty in hospitality industry such as
quality services, customer services, pricing of the products etc. It is essential for the firm focus
on improving these all factors.
Nadiri and Tanova, (2010) argued that emerging market has change the face of the hospitality
industry not only in terms of visiting a new place and develop hotels. But also, a potential source
market of new guest. There are large number of interesting trends which occur in the global
travel industry among them one of the notable is increase of travellers in the emerging market
countries. Companies are not focus on expanding their business in emerging countries where
labour is cheap. It is essential for hospitality business to focus on emerging markets in order to
gain competitive advantages.
Supanti, Butcher and Fredline, (2015) state that there are various emerging trends which
are affecting the hospitality industry such as leveraging technology for improving guest
experience, adoption of green practices etc. At present customers are using mobile app or
website to book the tickets. There are top hotel chains which are regularly experimenting a new
technology for increasing travellers experience starting from booking till checkout. There are
many hotels who provide option of check in and provide great experience to customers. There
are most of the companies in hospitality sector who are facing problem due to implementation of
new technology. Technological demand is increasing and become important for the companies to
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focus implementing new technologies. New technologies lead to provide huge impact on
customer satisfactions and retention. Along with this it also reduces unnecessary expenses and
cost. With the use of new technologies company can make improvement in its quality of
products and services. Quality and hygienic food is another aspect on which hospitality sector
need to focused. As people are now become health conscious so they need to focus on providing
hygienic and healthy food to its customers. The demand of cleanliness from customer side need
to be focused on improved so that they can easily enjoy their services. In present time hospitality
industry is facing new skill developing process in many ways. Customers are not become more
concern related to quality products and services. At present time people demand related to the
electronic gadgets in the hotels and rooms such as TV service , WIFI facility etc. It hotels
industry unable to fulfil these needs on time then they fail to satisfy customers on time. Customer
never wish to stay on that hotel in future. It lead to impact customer base and sales and profit of
the firm.
Despite the unusual condition of turnover in the hospitality business, it is possible that a couple
of customers are served by specialists who are truly untrained, less devoted, and less fit in their
job profile. In any case, dealing with this requires the usage of exceptionally dealt with
approaches to manage advantage quality organization. Ariza-Montes, Arjona-Fuentes. and Han,
(2017) suggested that if a relationship's as an issue of first significance objective is to give an
organization, a thorough method to manage advantage quality organization must be made and
used, wise at all levels of the relationship from the CEO to the entry level agents.
Aragon-Correa, Martin-Tapia and de la Torre-Ruiz, (2015) stated that the in view of the
possibility of the hospitality business; work ask for is much strange and subject to consistent
assortment. In this manner the hospitality business has had negative picture among pending
specialists. Elsewhere Martínez and Nishiyama, (2017) said that modifications in the extensive
scale condition for example developing workforce, cut down birth rates have furthermore added
to delegates' insufficiency inspiring the unevenness between the specialist demand and supply.
This has made labourer resourcing a remarkable issue and highlights that reasonable organization
of intrigue and supply of best illustrative is an extraordinary issue in the hospitality business
(Moutinho and Vargas-Sanchez,).
Regardless of the way that there has been a growing awareness with the estimation of
exploiting edge consolidated structures various hospitality firms still don't misuse them. There
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inadequate cognizance of the way wellness could be upgraded by methods for usage of these
system. García-Pozo and Sánchez-Ollero, (2015) argued that agreeableness association structures
have during the time shaped into complex, all around joined instruments which empower firms
to make more salary, to pull in more guests, and improve ampleness.
Eventually, some business still hold tight systems that have are much before their centred
supportive life. This limits them from having the favourable circumstances that are accomplished
by these structures. Regardless of the way that few firms are scared of overhauling their systems
since they expect that their agents won't be in a circumstance to manage these structures, there is
necessity for setting up the laborers how to use these systems
Nadiri and Tanova, (2010) stated that organization quality spotlights on the possibility of
the collaboration between the individual specialist and the customer at the reason for
organization, to the extent hospitality and general cleaned expertise. Hoque in like manner
battles that organization quality is the guideline factor in making high ground in the motel
business, and that any hospitality that does not endeavour to upgrade reliably its organization
quality will lose ground. High ground delivered from internal sources joins such characteristics
as regard rareness, exceptionality, and non-substitutability (Supanti, Butcher and Fredline,
2015), and the labourer toward the complete of the organization movement system may well be
the primary isolated and fascinating asset of a hotel affiliation that can't be easily copied.
A couple of experts have recommended that specific human resource organization
practices can improve agent satisfaction which in turns restrains the turnover rate.
Empowerment is one of the powerful philosophies proposed by various researchers. They
recommended that it is basic to offer vitality to the specialists who give benefits by focusing on
customers' needs. Organization encounters are the key activity in a customer advantage business
and delegates may encounter a significant measure of different extraordinary conditions which
can't be secured by the various levelled methodologies and exercises (Solnet, Kralj and Baum,
2015). If affiliations can offer vitality to their delegates, by then they can exercise sensibility in
passing on customer advantage and do whatever is required to satisfy customers' needs . It has
been disputed about that empowered delegates also have an incline to have a strong sentiment
control and individual worth since they can go for broke for the organization encounter and can
affect customer faithfulness At another level, it has been proposed that empowered employees
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are encouraged by doing imperative work that over the long haul redesigns their job satisfaction
and reduces the turnover rates.
Work pressure is presently perceived as a noteworthy issue in the HRM inside the hospitality
business setting. Administration quality issues are starting to accept significant significance in
the accomplishment of numerous activities (Campos-Soria, García-Pozo and Sánchez-Ollero,
2015). Relational dispute and work pressure reactions related with hospitality industry
representative administration struggle, together with ways to deal with service quality.
In European Union nations, hospitality industry has been recognized as most distressing
segment to work, with visit contact with intoxicated customers and clients. Presentation to
savagery and inappropriate behaviour is some of the time saw similar to a consistent event and a
piece of the activity in the division. Stress factors in the hospitality business incorporate a serious
interface with customers; expanding customer interest for profoundly enhanced and customized
administrations. The wellbeing status of laborers in the hospitality business is more awful than
that of the normal populace, particularly concerning emotional well-being.
It is essential for the firms to focus on providing training and development facilities to make
them highly skilled. If customers are not highly skilled then it become tough for them to deliver
quality products to customers (Sánchez-Ollero, Campos-Soria and García-Pozo, 2014). It is
analysed that poor experience of customers lead to decrease the loyalty. One of the huge
challenge for most of the hotel brands is related to understanding online review provided by
client lead to affect their overall brand image. Within the firm it is essential to focus on the
solution at the time when one problem is resolved. For management it is important to take
responsibility in order to take review from the customers after solving all the issues. It will help
in identifying the problem from which customer is suffering. Employees should be rewarded for
their best work so that they get motivated toward the work. There are large number of benefits
which is required to be provided to employees that can help in retaining them for longer period
of time. Along with this through providing training and development facility it will become easy
for them to easily handle new technologies.
Conclusion
From the above report it is concluded that there are many issues that faced by the
hospitality industry in modern era. There are various issues which are identified that taken place
in this sector. However, in the study discussion is done on few issues that recently identified by
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authors in their research. One of the significant issues faced is related to employee’s retention.
Further, it is concluded that Due to rapid change on rules and regulation company is providing
low wages to the employees. Along with this no benefit is provided to employees due to which
they are dissatisfied from the job. Therefore, analysis described that minimum wage can impact
the firm. There is increase in price of products and services which lead to enhance satisfaction
level of customers. There are many new technologies which are implemented by the firm and
services are changes due to which customers are become more demanding.
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