Hospitality, Lodging, &Tourism Industry - Research Paper Example

Hospitality, Lodging, &Tourism Industry Table of Contents I. Introduction ……………………………………………………………….. 3 II. Four Major Challenges Associated with Hospitality, Lodging, and Tourism Industry ………………………………………….. 4 a. Environmental Challenges Caused by Natural Calamities and War …………………………………… 4 b. Diverse Cultural Differences ………………………………….. 4 c. Tight Competition within the Hospitality, Lodging, and Tourism Industry ………………………………. 5 d. Adapting to Technological Changes ………………………… 5 III. Recommended Solutions on How to Successfully Overcome these Challenges ………………………………………………………………… 6 a. Environmental Challenges Caused by Natural Calamities and War …………………………………… 6 b. Diverse Cultural Differences ………………………………….. 7 c. Tight Competition within the Hospitality, Lodging, and Tourism Industry ………………………………. 7 d. Adapting to Technological Changes ………………………… 9 IV. Conclusion ………………………………………………………………… 9 References ………………………………………………………………………… Introduction Hospitality, lodging and tourism industry in the United States create a lot of job opportunities for the people. In relation to the economic contribution of these industries, it is essential to continuously promote and study the internal and external factors that could significantly affect the profitability and development of these businesses. In general, there is a strong correlation between having a good economic performance and the increase in the revenue of hospitality, lodging, and tourism industry. Since there has been an increased in the market prices of common commodities like food and gasoline, managers should be alarmed when total sales and revenue remains the same back in the year 2000 despite all the economic changes that has occurred in the market. (Bonham, 2005) Due to globalization, changes in the trend of tourism destination have become more complex and fast-paced. (Formica & Kothari, 2008) In order to maintain the high traffic of tourism within the United States, managers who are working in hospitality, lodging and tourism industry are faced with major challenges associated with the continuously changing market demography. For this study, the student will discuss the negative impact of four major challenges over the profitability and success of the U.S. hospitality, lodging, and tourism industry. Eventually, the student will provide some recommended solutions on how the managers of hospitality, lodging, and tourism industry could successfully overcome negative economic consequences of these challenges. Four Major Challenges Associated with Hospitality, Lodging, and Tourism Industry Environmental Challenges Caused by Natural Calamities and War External environmental threats caused by terrorist attacks and natural calamities such as hurricanes, typhoon, floods, tsunami, and earthquakes or the spread of air-borne diseases like SARS and bird flu could significantly affect the progress of hospitality, lodging and tourism industry within a state or region. (Gretzel et al., 2006) Based on the study that conducted by Chandler (2004), continues weather disturbances caused by hurricanes has led to the economic decline among the hospitality, lodging and tourism industry situated in the state of North Carolina during the month of September and October back in 1999. As result, as much as $96 million to $125 million worth of physical damages on existing hotels caused a lot of similar businesses to lose a significant large amount of expected sales a few months after the calamity has damaged the entire state. Diverse Cultural Differences One of the most common challenges caused by globalization is the problem associated with having diverse cultural differences between the business management and its target customers. (Jones & McCleary, 2004) Because of the cultural differences between the employees and customers, there are uncontrollable situations wherein personnel who are employed with hospitality, lodging, and/or tourism business could unintentionally offend the customers. In line with this type of situational crisis, it remains a challenge on the part of the managers to ensure that all employees regardless of their job responsibility with the business organization should pay close attention with the importance of dealing with people who has different cultural backgrounds to avoid encountering this type of situation. Tight Competition within the Hospitality, Lodging, and Tourism Industry The growth of hospitality, lodging, and tourism industry worldwide has resulted to the continuous expansion and market changes with regards to the preferences of the travelers especially when it comes to selecting their choice of destination. In line with the continuously increasing number of players within the hospitality, lodging, and tourism industry, it becomes a challenge on the part of the managers to be able to effectively capture the attention of its target customers. According to Ha & Love (2005), a good feedback coming from the word-of-mouth advertising is also one of the effective ways of encouraging the tourists to consider a specific destination site. Since there is a tight competition in hospitality, lodging, and tourism industry around the world, it is essential on the part of the managers to satisfy their visitors at all times. In case a large number of travelers have been satisfied with the services they receive from a US destination site, there is a higher possibility that US hospitality, lodging, and tourism will be able to maintain a higher level of customer retention and loyalty. For this reason, it is a challenge on the part of the managers to satisfy the needs and wants of each tourist. Adapting to Technological Changes A lot of similar businesses have been depending too much with the use of the Internet because this technology could make the job and responsibility of managers much easier aside from the fact that this technology enables the company to cut down on the high cost associated with long distance calls, printing of advertising materials, and the need to maintain a large number of employees within the business organization. Aside from increase the company’s competitive advantage with the use of the Internet technology (Beaver & Lashley, 1998), it remains important to have real people to answer the specific queries of the customers even though having established a website could replace some of the tasks of a call center. Due to the tight competition in the hospitality, lodging, and tourism industry, it becomes a challenge for these businesses not only to adapt with the latest technological changes but also the use of human resources when it comes to the need to providing feedback on customers’ queries. (Gretzel et al., 2006) Recommended Solutions on How to Successfully Overcome these Challenges Environmental Challenges Caused by Natural Calamities and War In case any of the hospitality, lodging, and tourism businesses were badly affected by a terrorist attack and/or any forms of external environmental threats that could significantly hinder the flow of normal business transaction, managers should immediately stay focus and alert while working on the necessary repair and/or reconstruction aside from maintaining the cleanliness of the place in order to enable them to cut down unnecessary business opportunity loss. (Stafford, 2002) Basically, prolonging the damages caused by external environmental challenges would only cause more harm on the economic part of the business. For this reason, managers should immediately consult the business owner on how they should address and act upon the adverse effects of possible property damages. Diverse Cultural Differences Aiming to avoid internal and external business problems caused by cultural differences between employees and the customers, managers working in hospitality, lodging, and tourism industry should provide employees with proper training with regards to the importance of diversity at work. (Weaver et al., 2003; Milman, 1999; Gamio & Sneed, 1992) Through the provision of proper training, employees will become more aware of the need to respect the cultural differences between two people. Not only would it enable the team to work more efficient but also minimizes internal conflicts caused by this issue. (Milman, 1999) Tight Competition within the Hospitality, Lodging, and Tourism Industry Because of the tight competition in the global markets, hospitality, lodging, and tourism industry in the United States should continuously develop new strategies that will enable the business to remain competitive in the global marketplace. Several studies concluded that one of the best way strategies that will enable the hospitality, lodging, and tourism industry increase its profitability is to develop an effective market positioning strategy based on the destination places around the United States as well as the offering of affordable prices and/or tourist packages for the benefits of the tourists. (Morrison, Taylor, & Douglas, 2004; Echtner & Ritchie, 2003) When it comes with tourism industry, Calantone et al. (1989) stated that proper management in tourism is necessary in creating a distinctive image or an outstanding perception with regards to a specific tourist destination. In general, a good destination image plays a critical role in the designing and implementation of a good marketing strategy for tourism. In other words, a destination with an attractive image is more likely to be a preferred destination by most of the international travelers. (Woodside & Lysonski, 1989) For this reason, hospitality, lodging, and tourist companies today are recommended to use of promotional literature such as travel brochures and posters, newspapers or magazine print ads, television ads, and/or maximizing the use of advertisements on the Internet. (Morrison, Taylor, & Douglas, 2004; Echtner & Ritchie, 2003; Perue, 2001) In line with these materials, marketing managers should maximize the use of colorful destination images as a way of creating a positive impression on consumers. (Felsenstein & Fleischer, 2003) When it comes to satisfying the needs and wants of foreign and domestic tourists in the US, managers should consider all the expectations of its visitors. In general, tourists’ expectation varies depending on the quality of service rendered to them and being able to satisfy their personal needs, motivations, and interests. (Innskeep, 1987) For instance, there is a bigger market for tourists who are searching for lodging accommodation that offers not only good quality service but also an affordable market price for the place. In line with keeping the market price affordable to customers, lodging management should be able to cut down its operational costs by making its available human resources more efficient. Likewise, it is equally important on the part of lodging management to improve and maintain the quality of its food and beverages at all times. (Goeldner & Dicke, 1981) In order to determine other services that matters most among the tourists, marketing managers should conduct a conduct a research survey on this matter. Adapting to Technological Changes Managers who are working within the hospitality, lodging, and tourist industry should realize that there is a need to balance the use of technology with the available human resources. (Haywood, 1990) Managers could balance the two by paying close attention to the number of employees needed to be assigned in addressing the specific queries coming from the customers versus the expected average daily queries coming from customers all over the world. As a result of balancing the available manpower and investment on the Internet technology, managers will enable the business to maximize the sales potential coming from the establishing a company website. Conclusion Because of globalization, competition within the hospitality, lodging, and tourism industry becomes very tight. In line with the changing demands in the global markets, the business trend on these industries also changes. Among the four major challenges these industries are currently experiencing includes: (1) environmental challenges caused by natural calamities and war; (2) diverse cultural differences; (3) tight competition within the hospitality, lodging, and tourism industry; and (4) adapting to technological changes. In line with these challenges, managers should always be prepared in developing new strategies to counter act the negative business effects References: Beaver, G., & Lashley, C. (1998). Competitive advantage and management development in small hospitality firms: The need for an imaginative approach. Journal of Vacation Marketing , 4(2):145 - 160. Bonham, C. (2005, January 25). Starbulletin.com. 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