HM 111 – MACRO PERSPECTIVE IN TOURISM AND HOSPITALITY Chapter 7 PDF

HM 111 – MACRO PERSPECTIVE IN TOURISM AND HOSPITALITY CHAPTER VII. CURRENT TRENDS AND ISSUES IN THE TOURISM AND HOSPITALITY INDUSTRY PREPARED BY: MR. JOHN MICHAEL C. TIMOSA, LPT, MSHRM Chapter VII delves into the current trends and issues within the ever-evolving tourism and hospitality indust...

HM 111 – MACRO PERSPECTIVE IN TOURISM AND HOSPITALITY CHAPTER VII. CURRENT TRENDS AND ISSUES IN THE TOURISM AND HOSPITALITY INDUSTRY PREPARED BY: MR. JOHN MICHAEL C. TIMOSA, LPT, MSHRM Chapter VII delves into the current trends and issues within the ever-evolving tourism and hospitality industry. This section aims to provide a concise overview of the contemporary factors shaping these sectors, emphasizing the importance of staying informed about industry trends. By exploring the latest developments and challenges, the chapter equips readers with a nuanced understanding of the present dynamics in tourism and hospitality, fostering insightful discussions and strategic analyses. Operating Issues 1. Human Resources Shortages: A major challenge in many locations, limiting hospitality expansion. Example: Shrinking labor force due to factors like demographic changes and dissatisfaction with working conditions. 2. Cost Containment The industry aims to reduce costs while maintaining quality standards. Example: Balancing cost reduction with guest expectations for quality services. 3. Increased Competition Overbuilt communities lead to price-cutting and reduced profits. Example: Hotels facing stiff competition, resulting in reduced profit margins. Marketing Issues 1. Market Segmentation and Overlapping Brands Lodging chains target specific traveler niches, potentially leading to overlap. Example: Concerns about franchisers expanding their brands and causing competition between their own properties. 2. Increased Guest Sophistication Guests have become more discerning, desiring specific amenities and services. Example: The demand for specialized amenities like business centers, exercise facilities, etc., increasing costs. Technological Issues 1. Interactive Reservation Systems Guests now use the internet for reservations, and hotels must adapt. Example: The increasing trend of reservations made online, emphasizing the need for online booking capabilities. 2. Guest-room Innovations Implementing expensive but desired amenities like Wi-Fi, mood-based lighting, and interactive features. Example: Incorporating advanced technology in guest rooms to enhance the guest experience. Economic Issues 1. Dependence on the Nation's Economy The industry's performance closely ties to the national economy. Example: Fluctuating business travel based on economic conditions, affecting occupancy rates and profits. 2. Globalization Both the national and international economies significantly impact the industry's success. Example: Hotels must adapt to global trends and preferences, not just national economic conditions. Consumer Affairs Issues 1. Fire Safety Ensuring safety through measures like fire control systems and sprinklers. Example: Implementing safety measures to protect guests and property. 2. Truth in Menus Ethical practice of providing accurate menu descriptions, ensuring trust and loyalty. Example: Legal consequences for businesses misrepresenting their menu offerings. 3. Diet, Nutrition, and Health Adapting menus to cater to health-conscious consumers' changing preferences. Example: Offering healthier dining options to meet customer demands. Other Issues 1. Green Hospitality Embracing sustainable practices for economic, community, and environmental benefits. Example: Implementing green initiatives to reduce environmental impact. 2. Higher Education Adapting education curricula and practices to meet changing industry needs. Example: Revising educational programs to equip graduates with relevant skills for the evolving industry. 3. Labor Cost Issues Addressing labor expenses, a significant portion of operating costs for hospitality businesses. Example: Managing labor costs to maintain profitability while providing fair compensation. 4. Multicultural Issues Addressing the diverse needs of a global clientele and workforce. Example: Tailoring services to cater to the preferences and cultural backgrounds of a diverse customer base.