Chapter 7: Current Trends and Issues in Tourism and Hospitality Industry PDF

CURRENT TRENDS AND ISSUES IN THE TOURISM AND HOSPITALITY INDUSTRY CHAPTER 7  Learning Objectives: Discuss the social and economic changes that suggest a bright future for the tourism and hospitality industry; Be familiar with the specific issues that owner...

CURRENT TRENDS AND ISSUES IN THE TOURISM AND HOSPITALITY INDUSTRY CHAPTER 7  Learning Objectives: Discuss the social and economic changes that suggest a bright future for the tourism and hospitality industry; Be familiar with the specific issues that owner and managers of the tourism and hospitality establishments are likely to face in the following areas: marketing, legal, human resources, operations, and consumer affairs; and Identify the steps taken by the owners and managers of tourism and hospitality entities to address the major issues confronting the industry.  The Bright Future of Tourism and Hospitality a. Early Retirement. At present, many workers retire an early age than the case in previous years. The increasing number of people who retire early is beneficial for the tourism and hospitality industry because they use their time to travel and see the world. b. Longer Life Span. The increasing population of older, retired citizens who are more abundant due to pension programs and are healthier provides a more extensive base of potential customers for tourism and hospitality operations. c. Shorter Workweek. An increase in leisure time, combined with faster and more accessible transportation, makes it possible for many individuals to take weekend vacations and travel.  The Bright Future of Tourism and Hospitality d. Higher Disposable Income. The average family nowadays has more money to spend than before. A large portion of the additional disposable income is spent on consumer goods and services. e. Greater Mobility. Improved roads and better transportation make it easier to trave every year. The modern highway system reduced the time required for automobile travel between any two points. f. Smaller Families. The average family size has decreased. Thus, it is easier for the family to travel, and travel costs less if a few family members travel.  MARKETING ISSUES ISSUES IN LEGAL ISSUES TOURISM AND HUMAN RESOURCE ISSUES HOSPITALIT Y OPERATIONS ISSUES CONSUMER AFFAIRS ISSUES  MARKETING ISSUES i. Changing Demographics. The population of developed countries is aging. There is an increase in the number of single-parent households, continuing growth in the number of people traveling for personal rather than for business purposes, and growth in the number of international travelers. ii. Changing Vacation Patterns. Citizens of industrialized countries are changing their vacation patterns. The traditional once-a-year vacation of two weeks or more is declining in popularity. For a growing number of people, vacations are becoming shorter and more frequent. Also, more people usually plan mini-vacations. iii. Marketing Segmentation. The success of the limited-service properties led to the development of other properties intended to appeal to selected market segments. As new market segments are identified, properties designed to appeal to those segments are likely to be developed.  MARKETING ISSUES iv. Frequent Guest Programs. The proliferation of properties and increasing competition urge the development of programs to gain repeat business. v. Maturation in Segments of the Fast-food Industry. Operators of fast-food chains find it necessary to develop new products to maintain the desired sales level. vi. Consolidation in the Commercial Lodging Industry. The trend toward consolidation will have a tremendous impact on all commercial lodging operations. Both independent operation and owners of smaller chains will find it difficult to compete with heavily advertised national and international brands.  LEGAL ISSUES i. Liquor Liability. The growing public concern over the increasing number of alcohol-related automobile accidents. Regulation on serving alcoholic beverages prompted some bar owners to go out of business and caused some restaurant owners to stop serving drinks. Societal attitudes toward alcoholic beverages continue to change. ii. Ethics. Ethics in the tourism and hospitality industry has been an issue for thousands of years. Business practices of some operators of tourism establishments are questionable. Business ethics is likely to remain forever in the list of tourism issues.  HUMAN RESOURCE ISSUES i. Sexual Harassment. Sexual harassment takes place in any of the following conditions: 1) Submission is made a condition of the person’s employment; 2) Submission to or rejection of such conduct is used as a basis for employment discussions affecting the person; and 3) It unreasonable interferes with the person’s work performance or creates an intimidating, hostile, or offensive work environment. Employers should take the following steps to avoid sexual harassment issues: 1) Institute a strict policy banning all forms of sexual harassment in the workplace; 2) Develop appropriate training programs for managers and employees so that all will understand and become sensitive to the nature of sexual harassment; and 3) Establish procedures for handling all complaints promptly, fairly, and in a sensitive manner.  HUMAN RESOURCE ISSUES ii. Employee Turnover. This is the most common issue faced by hospitality and tourism managers. Managers encounter problems with losing experienced employees and hiring less experienced ones as replacements. They believe that they have only two choices when faced with an inexperienced replacement: 1) Shoulder high training cost; and 2) Incur the equally high costs associated with working with the untrained employee.  HUMAN RESOURCE ISSUES iii. Employee Assistance Plans (EAP). EAPs are one of the secular steps to pay attention to the problems of their employees. The usual issues of those employed in the industry include psychological, financial, health, legal, and family issues. A manager who establishes EAPs to benefit employees will eventually develop a more loyal workforce, which will help to reduce employee turnover.  HUMAN RESOURCE ISSUES iv. Employee Empowerment. Some tourist establishment managers have developed rules and procedures that employees are directed to follow, which may affect the overall impression. For some guests, these rules may be enough to make them decide never to return. Many owners and managers have realized the ineffectiveness of setting strict rules governing every detail of guest service. Thus, they now set policies that are guest-oriented. They empower their employees to make decisions that will improve the quality of service to guests without harming operations.  OPERATIONS ISSUES i. Automation. The two primary reasons for automating an enterprise are: 1. To increase the speed of work; and 2. To reduce the cost of work. Automation in the travel industry will affect the following areas: 1. Communications. Portable Communication Data Units (PCDUs) allows a business traveler to communicate with any travel entity from any place. 2. Interactive CRTs. Interactive television is now being used in some cities, making a big possibility that much of the order placement process will be shifted to interactive television. 3. Elimination of Tickets. In this generation, travelers are no longer required to carry some printed documents as these documents may be produced electronically with the use of a bar or QR code that can be easily scanned at the ports, terminals, or stations.  OPERATIONS ISSUES ii. Smoking/Nonsmoking Areas. Since more and more customers demand a smoke-free area in hospitality and tourism establishments, owners and managers are exerting effort to meet these demands by providing appropriate facilities following legal standards. iii. Sanitation and Public Health. Food handling sanitation has always been an issue in the industry. National and local governments apply strict sanitary standards to hospitality and tourism operations. To ensure compliance with these sanitary codes, many operators hire consultants to check and immediately correct any violation regularly. iv. Recycling Solid Waste. Separating recyclable plastic, glass, and other items from other solid wastes significantly decrease the quantities that require disposal. CONSUMER AFFAIRS ISSUES i. Fire Safety. Hospitality and tourism establishments installed fire control systems in buildings and room ventilation to preempt the danger. Buildings are usually insulated to decrease heating and cooling expenses. ii. Truth in Menus. For foodservice operators, preparing truthful menus is an ethical practice that should never be violated. However, a minority have produced menus that are not accurate indicators of the food served in their establishments. Others have not used the actual ingredients suggested by their menus and substituted one product for another. iii. Diet/Nutrition/Health. Customers nowadays are becoming more conscious of the foods they eat. Hence, food service providers are adjusting their menus to meet the changing tastes of the public. Foodservice providers now give the nutritional content of food much attention. THE FUTURE OF TOURISM AND HOSPITALITY  The World Travel and Tourism Council forecasts that travel and tourism will grow at 40% to 50% in the next ten years. The following tourism and hospitality items are a few examples of the future wave in the industry: a. Increased speed and shopping use of the internet in developed countries; b. Extended reach in less-developed countries; c. Improved security of personal information; d. Robotic labor sources; e. Reservation systems with more sophisticated, voice-activated, artificial intelligence; f. Improved navigational systems for rental cars; g. Electronic entertainment venues in rental cars and on planes and cruise ships; h. Upgraded internet personal digital assistants for operations; i. Marketing mass customization; j. Comprehensive branding campaigns for large and small operators; k. Virtual online customer communication; l. Just-in-time seats/rooms/car inventories; m.Electronic travel agents; n. Blended hybrid accommodations; o. Global anti-terrorist microchip security systems; p. More nutritional fast-food offerings; q. Emphasis on ecotourism; and r. Improved customer relationship marketing information.