Hilton Adelaide - Emerging Issues in Hospitality and Tourism - Case Study Example

EMERGING ISSUES IN HOSPITALITY & TOURISM Student’s Name: Code + Course name Professor’s name University City, State Date Introduction Hilton Adelaide is a hotel and resort located in Victoria Square, Adelaide, South Australia. Being a member of the Hilton Group of Hotels, the hotel and restaurant boasts of its excellent customer services. Just like the other firms in the hospitality and tourism sector, the shortage of labour and skills for professionals in the hospitality and tourism industry is one of the problems that the business encounters as identified in the previous research. The other issues encompass the adverse effects of the Global Financial Crisis to the industry performance and the changes in the Australian demographics. The essay provides a critical analysis of the three main factors that impacted negatively on the hospitality and tourism sector in the Australia essentially at Hilton Adelaide. Training and Skills Development The Hilton Adelaide Hotel and Resort believe that the human resource aspect handles the provision of an exceptional hospitality experience. Therefore, the business emphasises on human resource and training as a pertinent contributor to its excellence in the industry. In the quest to attain the objective, it has established a team of development experts and learning that deliver first-rate hotel training centred on providing the best guest experience. The employee management team uses their extensive knowledge in employee compensation and benefits to ascertain job satisfaction. The business also boasts of a hotel training library that trains all aspects associated with the hotel business. The Regional Training Manager ascertains that Hilton Adelaide adopts the standard training procedures. As a strategy for dealing with the labour shortage in the industry, Hilton Adelaide uses PeopleSoft and SuccessFactors in the recruitment and maintenance of the most talented members of its workforce. The quest for talented hotel professionals has also seen the firm maintain close contact with top hotel institutions of higher learning in Australia and overseas. The company also utilises electronic tracking of applicants and online recruiting to ascertain that it hires the most talented professionals in the world. The employee training programme encompasses employment relations, collective bargaining agreements, recruitment, training and employment law. Factors Underpinning the Shortage of Skills The Required Skills Apparently, numeracy and literacy are the fundamental requirements associated with the skills requirement factor. The tourism and hospitality industry requires aesthetic labour. Therefore, it is imperative for the employees of the sector to behave in manners that are compatible with the customer expectations and the job requirements. Therefore, intra- and interpersonal skills are relevant to the industry. Apparently, experience-based training suffices to be the best strategy of imparting such skills to the trainees (Baum 2006). To deliver exceptional customer services, the trainees ought to have substantial skills associated with leadership, ethical standards, professional standards, emotional intelligence, critical thinking and problem solving. Therefore, the hospitality and tourism training curriculum in Australian universities and colleges should emphasise on such skills to ensure the production of industry-ready graduates. Therefore, it is the responsibility of the firm or business in the industry to ascertain that its employees have the required skills in the industry. Therefore, the decision of Hilton Adelaide to introduce the on and off the job training programmes was appropriate since it ensures that its employees have the required customer service skills that meet both their job requirements and customer expectations. The decision of the company to offer its additional training following the recruitment of its employees emanates from the fact that the Australian educational system does not produce individuals that are ready to serve in the industry (Baum & Scivas 2008). For instance, outdated education materials and generic education programmes characterise the Australian educational system. Consequently, the system produces individuals that cannot fit directly in the hospitality industry. For instance, there exists a negative correlation between the perceived skills requirements of the educational providers and what the graduates of the institutions need to deliver exceptional customer services in the industry. The constant workplace changes have posed a significant challenge to the education provider regarding the required training programmes. As a matter of fact, the training should address SMEs’ needs as well as responding to the regularly changing and diverse requirements of the different sub-sectors of the industry. The continuous on the job training experienced at the resort centre is in response to the changing needs of the industry. Similarly, it is imperative that the training system should instil a strong lifelong culture of learning to develop graduates that will respond affirmatively to the continuous on the job training initiatives adopted by their organisations. Industry Factors It is evident that there the hospitality sector portrays a negative image to the potential employees since small business dominates the industry thereby offering unpleasant job opportunities. Therefore, only major organisations adopt standard approaches in the recruitment and management of human resources. On the other hand, small businesses utilise unconventional ways of recruiting employees thus resulting in employee dissatisfaction and reduced morale at the workplace. According to Baum (2007), some of the negative attributes associated with the industry because of the significant number of small businesses encompass poorly paid, last resort option, unpleasant, insecure, degrading, and exploitative. Servitude is also prevalent in the upcoming tourism destinations. The need for low-cost tourism plays a central role in the poor pays of the employees in the industry since the employers are always on the lookout for cheap labour. The slow career progression also stands out as an impediment to the recruitment and retention of employees in the sector. Heightening the significance of customer service in Hotel Adelaide is one of the strategies that the management of the resort utilises to enhance the value of the heritage facility. Employee Expectations Apparently, the 21st century has witnessed significant changes in the societal expectations in employment matters. Consequently, the current generation has different perceptions regarding the preferred job. For instance, Whitelaw et al. (2009) argues that current generation of graduate employees expect promotion within soon after their recruitment in a job position rather than waiting for longer periods as is the case in the hospitality and tourism sector. In essence, attaining a work-life balance suffices to be the primary objective of today’s employees rather than concentrating on the workplace. Therefore, continuous learning opportunities, interesting work and the guarantee of positive relationships with other colleagues are the three major incentives that motivate employees at the workplace. As a response to the issues pertaining the expectation of the employees, Hotel Adelaide decided to utilise the customer service training and the on and off the job training on a continuous basis to act as the points of reference in the promotion of the employees thus enhancing their motivation and satisfaction. Government Policy and International Relations The decision of governments including the Australian Government to permit the inflow of cheap labour from overseas countries has played a significant role in dwarfing the hospitality and tourism sector. The influx of cheap labour impacts negatively on the employee training and workplace development strategies adopted by the businesses in the industry. In the long run, most of the employees in the sector earn meagre salaries that contribute significantly to the higher rates of staff turnover. The industry has displayed dismal results in comparison to other industries regarding the preferred employment based on issues such as workplace satisfaction and compensation levels. In fact, employees do not see an incentive associated with sticking in the industry for longer durations. Moreover, most organisational frameworks do not heighten the significance of employee training and workplace training thus resulting in reduced employee motivation at the workplace. As a countermeasure to mitigate the adverse effects of the government policy on the retention of its employees, the hotel has decided to offer on the job training and other attractive workplace development programmes to encourage the retention of its employees. Managing the change in demographics The “Generation Y” employee has invaded the Australian labour force and replaced the aged ones. It comprises of young people born between 1978 and 1994. Handling the young generation of workers to meet their needs is a challenge that the employers in the tourism and hospitality sector encounter on a daily basis. It is worth noting that the generation handles the provision of a substantial amount of traditional tourism. However, the expectations are different from those of their predecessors. The industry strives to position itself as a career choice to the young generation through the Discover Hospitality and Discover Tourism Initiative. In the quest to gain the favouritism from the young generation, the industry uses such initiatives to boost its image in relation to the other competing sectors. Therefore, to guarantee a constant labour supply provided by the Gen Y individuals, the industry utilises vocational motivations among other incentives (SSR 2014). The increasing number of young employees also implies an increase in the number of old employees from the continually ageing population. Therefore, it is proper for the industry to implement strategies that will motivate the aged employees to seek employment in the sector. Apparently, semi-retired workers often seek short-term jobs. Therefore, all the firms in the industry have acknowledged the significance experience of such employees thus expressing the necessity of reabsorbing them into their workforce. However, it is appropriate for the firms to understand that such employees require reduced working hours to meet the demands of their increasing age. Hilton Adelaide among the other players in the sector has realised the significance of the semi-retired employees following the experience that they have gained in the industry. It is evident that the aged workers can manage training programmes because of their vast experience in the industry thus guaranteeing the propagation of the pertinent customer service skills in the business. Increased longevity of workers at the workplace has emanated as a response to the labour shortages observed in the industry. Firms find it economical to retain its semi-retired employees rather than utilising recruitment and training as the principal way of sourcing their workers (SSR 2014). On the part of the hotel, the semi-retired employees have been instrumental in imparting skills associated with offering exceptional customer service to the tourists. The business uses attractive remuneration packages to encourage its mature workers to extend their duration in service delivery. The company supports the extension of the retirement of its aged workers as a way of augmenting the retirement income. Therefore, the inclusion of elderly employees in the organisation's workforce impacts positively on both the firm and the employee. The part-time employment impacts positively on the wellbeing of the worker through the provision of a favourable employment conditions. In the same way, the hotel resort benefits from the experience of the individual thus reducing on the resources utilised in training new employees. The company has established positions for casual and seasonal labourers to ascertain the inclusion of part-time workers as a strategy of taking care of the labour shortages and the semi-retired employees. Apparently, the primary strategy of maintaining the experience and expertise of the workforce is the inclusion of flexible working hours and conditions to encourage the aged workers to serve in the workforce rather than retiring completely. In return, the company benefits from the professional and personal knowledge and experience of the workers in the industry thereby enhancing its performance and development of skills. Hotel Adelaide has also introduced a flexible workplace relations system that ensures the smooth transition of employees from full-time to part-time employees while utilising the flexible workplace arrangements. Rather than addressing the shortage of labour in the sector, retaining semi-retired employees also enhances workplace diversity (SSR 2014). Moreover, impacts positively on the experience and expertise of the workforce. On the part of the employee, engaging in part-time employment as a semi-retired employee reduces the economic burdens associated with full retirement. In most cases, retired employees impact negatively on the welfare of the society and their tax contributions to the government. As a result, recruiting such employees as part-time workers reduce the burdens associated with the upkeep of retired employees. Dealing with the adverse Impact of the GFC on Tourism Apparently, the tourism sector was one of the worst-hit industries following the Global Financial Crisis (GFC). Consequently, many businesses had to close down resulting in the loss of employment for many Australians. Following the recommendation from the Australian Tourism Recovery Strategy, the firm decided to increase its value by improving customer services and its tourist attractions to gain the competitive advantage over other businesses. The primary objective of the recovery strategy adopted by the firm was the desire to survive in the industry thus maintain a higher number of the previously existing jobs at the tourism resort and restaurant facility. For instance, the company used special offers, price discounting and leveraged the Australian dollar to attract customers to its premises. It was imperative for the facility to respond to the TTF’s proposal that contained the recovery strategies that would save jobs, recover the industry and support regions. The strategy covered the marketing, product and taxation aspects that turned out to be the pillars of the industry. Marketing As a response to the TTF’s proposal, the hotel communicated the quality and price competitiveness of Australia’s tourism to the international, and domestic travellers. It is worth observing that the industry had suffered market failure as an aftermath of the GFC. However, funding from the Commonwealth Government was the instrument in bailing out the industry from the period of economic recession. The Government had also advocated for a weak exchange rate for its currency that made Australia to be a preferred tourism destination thereby encouraging the influx of a significant percentage of tourists despite the financial crisis (TTF 2009). The weak rate of exchange of the Australian dollar also reduced the country's budget in international marketing thus disadvantaging Australia as compared to its overseas competitors. Being one of the tourism destinations, Hilton Adelaide partnered with the government to develop tactical international marketing campaigns that would communicate the value of Australia’s tourism to the entire world. Towards achieving the objective, the Commonwealth Government had already set aside $40 million to take care of the international marketing campaign on an annual basis for two years. The business availed its tourism packages and hotel discounts to the international marketers. The joint decision to market Australia's tourism on a global basis was appropriate since it played a pivotal role in restoring the value of the tourism sector. Product As a response to the TTF’s directive, the firm had to develop its tourism products to attract more tourists thus help in the recovery of the industry. The government also played its part by investing in tourism infrastructure as a strategy of guaranteeing the sustainability of the industry. By so doing, the business was in a position of creating more jobs following the expansion of its tourism infrastructure by the government (TTF 2009). Taxation and the Passenger Movement Charge Relief Hotel Adelaide and its competitors advocated for the reduction or complete removal of the PMC relief on Australia-bound air travels emanating from New Zealand and Japan. It is evident that the two countries are the key tourism markets for Australia. Being major partners in the business, the airlines had already reduced their travel prices and offered price discounts because of the reduced input costs and airline margins. As one of the major players in the tourism sector, the company made joint objections to further increases in the PMC tariffs since the Commonwealth Government had intended to increase it from $38 to $47. It was evident that the PMC relief on the airfares of Japan and New Zealand would yield 123,000 additional passenger movements. Even though the relief would cost the Australian Government $70 million, it would yield $180 million in tourism revenue for the government thus saving Australia’s tourism destinations including the hotel (TTF 2009). Conclusion Being one of the businesses in the tourism and hospitality sector, Hilton Adelaide also encounters the emerging issues and trends in the industry. Inadequate skilled labour is one of the major constraints that affect the firm. As a measure to counteract the limitation, the company has heightened the significance of employee training and skill development. It also uses PeopleSoft and SuccessFactors to recruit and maintain the most talented workforce. The firm also uses internet recruiting to ensure that it hires the most talented hotel professionals on a global scale. The company also faced the adverse effects of the Global Financial Crisis that resulted in a decline in the number of tourists and other guests that visited its premises. However, it emphasised on enhancing the value of its guest services and marketing strategies to remain competitive in the industry. Finally, the business has also implemented an efficient HR system that motivates the young employees as well as recruiting semi-retired employees. Reference List Baum, T & Szivas, E 2008, ‘HRD in tourism: A role for government?’ Tourism Management, vol. 29, no. 4, pp. 783-794. Baum, T 2006, ‘Reflections on the nature of skills in the Experience Economy: Challenging traditional skills models in hospitality’, Journal of Hospitality and Tourism Management, vol. 12, no. 2, pp. 124-135. Baum, T 2007, ‘Human resources in tourism: Still waiting for change’, Tourism Management, vol. 28, no. 6, pp. 1383-1399. Service Skills Australia (SSA) 2014, ‘Tourism, Travel & Hospitality Environmental Scan’. Tourism & Transport Forum (TTF) 2009, ‘Australian Tourism and the Recession: Joint Government/Industry Recovery Strategy-April 2009’, Tourism Satellite Account, Australian Bureau of Statistics. Whitelaw, P A, Barron, P, Buultjens, J, Cairncross, G & Davidson, M 2009, ‘Training needs of the hospitality industry’, Gold Coast, Australia: STCRC. Read More