Trends and Issues in Hospitality Management PDF

GROUP 3 TRENDS AND ISSUES IN HOSPITALITY MANAGEMENT PRESENTED BY: Alvarez, Christine Joy Arafiles, Rhona Cariaga, Dave Dino, Julie Mae Palattao, Kylie Ramos, Krayford Talacay, Gherwin Tallud, Lhee Andrea Viloria, Shiela ECONOMIC ISSUES IN HOSPITALITY INDUSTRY INFLATION AND GLOBALI...

GROUP 3 TRENDS AND ISSUES IN HOSPITALITY MANAGEMENT PRESENTED BY: Alvarez, Christine Joy Arafiles, Rhona Cariaga, Dave Dino, Julie Mae Palattao, Kylie Ramos, Krayford Talacay, Gherwin Tallud, Lhee Andrea Viloria, Shiela ECONOMIC ISSUES IN HOSPITALITY INDUSTRY INFLATION AND GLOBALIZATION The hospitality industry, heavily reliant on consumer spending and global travel, is particularly susceptible to economic fluctuations. Two major economic challenges that have significantly impacted this sector in recent years are inflation and globalization.  INFLATION The sustained increase in the general price level of goods and services. INCREASED OPERATIONAL COST Rising prices for food, beverages, energy, and supplies directly impact a hotel or restaurant's bottom line. INTEREST RATES HIKES REDUCED To combat inflation, central banks may CONSUMER SPENDING raise interest rates, making it more expensive for businesses to borrow As inflation erodes purchasing power, money for investments or expansions. consumers may cut back on discretionary expenses like travel and dining out. WAGES PRESSURES Employees often demand higher wages to keep pace with inflation, further increasing operating costs. GLOBALIZATION The interconnectedness of economies and cultures worldwide, it has both positive and ECONOMIC VOTALITY negative implications for the hospitality industry. Global economic events, such as financial crises or trade wars, can significantly impact tourism demand and the profitability of hospitality businesses. INCREASED COMPETITION Globalization has led to a surge in international tourism and the growth of global hotel chains, intensifying competition. CULTURE EXCHANGE Globalization has fostered cultural exchange and understanding, which can benefit tourism and hospitality. NEW MARKETS Globalization has opened up new markets for hospitality businesses, providing opportunities for expansion. STRATEGIES TO ADDRESS INFLATION REVENUE ENHANCHMENT AND GLOBALIZATION Financing Decision To mitigate the challenges posed by Explore ways to increase revenue, such as inflation and globalization, hospitality offering value-added services, implementing businesses can consider the following dynamic pricing strategies, and targeting strategies: niche markets. COST MANAGEMENT Dividend Decision DIVERSIFICATION Implement measures to reduce operational Consider diversifying operations to reduce costs, such as energy efficiency, waste reliance on a single market or customer reduction, and strategic sourcing. segment. STRATEGIES TO ADDRESS INFLATION AND GLOBALIZATION TECHNOLOGY ADOPTION Leverage technology to improve efficiency, enhance customer experience, and gather Dividend Decision valuable data for decision-making. RISK MANAGEMENT Develop strategies to mitigate risks associated with economic fluctuations, such as hedging against currency fluctuations or investing in insurance. GROUP 3 Thank You!