THCMAC103 Module 4: Current Trends and Issues in the Tourism and Hospitality Industry

Social and Economic Changes in Tourism and Hospitality

• Significant social and economic changes indicate a promising future for tourism and hospitality, driven by evolving demographics and consumer preferences.
• The US social security system provides retirement income and benefits for disabled workers and their families, ensuring economic stability for aging individuals.
• Many employee retirement programs are based on defined benefit plans or defined contribution plans, guiding retirement savings and disbursements.

Retirement Trends and Implications

• In some retirement programs, a minimum working period of ten years is often required to qualify for benefits at a younger age.
• The trend of early retirement implies a growing consumer base for tourism and hospitality, as retirees seek leisure and travel opportunities.
• An increasing number of early retirees can be beneficial for the industry, contributing to demand for travel services and hospitality experiences.

Impact of Longer Life Span

• The average individual’s longer life span has led to increased travel opportunities, as retirees engage in leisure activities and exploration in their extended years.
• Transitioning from a six-day workweek to a four-day workweek has expanded travel possibilities, allowing consumers more time to travel and explore.

Economic Factors Influencing Tourism

• Higher disposable income allows consumers more freedom to invest in travel and hospitality, driving growth in the industry.
• Improved roads and transportation systems enhance accessibility, reducing travel times and increasing tourism potential.
• The modern highway system facilitates long-distance travel, contributing to greater exploration of diverse destinations.

Family Dynamics and Travel Costs

• A decrease in average family size often leads to lower group travel costs, making trips more economical for smaller families or individuals.
• An emerging issue in tourism and hospitality relates to adapting to rapid social, economic, and technological changes, requiring constant innovation and responsiveness.

Categories of Industry Issues

• Issues related to marketing, legal matters, human resources, operations, and consumer affairs fall under the broader category of operational management in the tourism and hospitality industry.
• While many factors affect the industry, one category not commonly recognized is the misdirection of focus on outdated strategies rather than contemporary consumer needs.