} Prices are slashed to try to fill empty rooms and flights. Challenges that facing hospitality include will include operating issues, marketing issues, technological issues and economic issues. As a result, there has been an increase in the demand for accommodation. managers globally need to start working on the above mentioned challenges by formulating effective strategies with immediate effect. What are some of the most significant challenges facing the hospitality industry and restaurants right now? That makes for one of the greatest challenges facing the hospitality industry and restaurants. Pricing in the hospitality and tourism industry is a major issue that needs to be attended to. Cookies Policy, This essay on Current Issues and challenges of Hospitality and Tourism Industry was written and submitted by your fellow student. This means that technology is one of issues that the hospitality and tourism industry has to cope with for long terms sustainability. Restaurants and hotels usually have a large supply of expensive wine, unlimited food, and high-end equipment. Business managers in the hospitality industry across the globe face the challenges such as: continuously satisfying guests, highlighting hotel attributes (Wuest et al., 1996) and ensuring that guests make a repeat visit (Dominici and Guzzo, 2010). We will write a custom Essay on Current Issues and challenges of Hospitality and Tourism Industry specifically for you for only $16.05 $11/page. Defining the hotels, catering and tourism sector and the scope of the issues … Restaurants now have a greater variety of vendor options to make their menus more appealing while obtaining ingredients and supplies at a lower cost. Guevara Manzo highlighted WTTC members’ greatest concerns for the travel and tourism sector, based on a recent survey: 1. That’s always been true to a certain extent in the hospitality industry. Labor shortages are one of the greatest challenges facing the hospitality industry and restaurants. This labor pool is always available, and businesses can capture thousands of dollars in tax credits for hiring eligible individuals. In order to chart and contribute to a better understanding of the effects of COVID-19 on tourism and the sector’s response at various scales, Current Issues in Tourism is calling for empirically-based papers that focus on the impacts of COVID-19 on markets, destinations, organisations and businesses, consumers, destination communities, transit zones and tourism transport. It’s no wonder business owners and managers in this sector are losing sleep. In this article, we discuss 6 Major Hotel Industry Challenges in 2019 and beyond. Shortages are becoming an issue as the talent pool of suitable candidates shrinks. In this case, the availability of capital has been limited. Raising rates to recover lost profits later is a tricky business. The tourism crisis is the impacts that adding 800 million additional international visitors per year to the tourism industry, not to mention the increase of tourism visits that may take place within national borders. Copyright © 2020 - IvyPanda is a trading name of Edustream Technologies LLC, a company registered in Wyoming, USA. IvyPanda. Labor and skills shortage has been identified as one of the challenges that are facing the tourism and hospitality industry. As an example of one way to make benefits better, even organizations with fewer than 50 employees are able to offer health coverage now by leveraging the power of group plans and blending them with supplemental coverage that helps fill in the gaps. Key CX Challenges Facing the Hospitality Industry Hotel brands are starting to better understand the importance of the guest experience to their success, but few are considering the customer journey in its entirety. In this case, the line between these two aspects needs to be drawn effectively to do away with any contradictions or conflict of interest that might come by. The Hospitality Industry and Some of the Personnel Challenges it faces. Musasa, G. and Mago, S. 2014. General theft and other crime 2. These shifts can be as big as globalization. When clients plan for trips, hotels … Kusluvan, S., & Kusluvan, Z. Most notably, such measures have affected tourist numbers yet the industry might have spent a lot of money trying to woo and attract customers. Current Issues and challenges of Hospitality and Tourism Industry, Ecotourism resort at the Amazon: Amazon Eco-tourist Resort, Impact of the Japan Tsunami 2011 Disaster on Tourism and Hospitality Industries, http://www.economywatch.com/world-industries/tourism/trends.html, https://www.hotel-online.com/News/PR2010_3rd/Aug10_HospitalityPersonnel.html, http://moelwintravels.blogspot.com/2009/01/2009-tourism-trends.html, Current Trends in the Global Hospitality Industry, The Evolving Role of Government in Education, Current Trends in Global Hospitality Industry, The Hospitality and Tourism Market in Victoria State Australia, Current trends in Global Hospitality Industry, Principles of Hospitality Enacted in Private and Commercial Domains, Al Tayyar Travel Group-role in transforming Saudi tourism, Emerging Issue in Tourism and Hospitality. Eco tourism for sustainable regional development: Current Issues in Tourism. Article Type: Editorial From: EuroMed Journal of Business, Volume 10, Issue 3. Prices are slashed to try to fill empty rooms and flights. e.src = url Issues, Challenges, and Trends, that Facing Hospitality Industry WANG Jin-zhao1 WANG Jing2 Abstract: This article presents findings of issues, challenges and trends that hospitality industry might fact in the year ahead respectively. (2011). Some of these laws have been punitive and affected the growth of the tourism and hospitality industry in a broad way. In this blog post, I’ll be covering: Social media and reputation management; The decline of high street travel agents "Current Issues and challenges of Hospitality and Tourism Industry." This, Manzo reported, is an issue 78 percent of members identified as being of high importance. All businesses, regardless of size, are facing serious challenges, especially those in the aviation, tourism and hospitality industries, with a real threat of significant declines in revenue, insolvencies and job losses in specific sectors. The travel industry is one that is going through major disruption and so this time round, I’m going to be investigating the top challenges facing the travel industry in 2019. It should be known that the tourism and hospitality industry has been growing in recent years and this is because various economies have been on an upward trend. The hospitality industry revolves around people: guests and the employees serving them. 2009 tourism trends. The study assessing the challenges of hospitality and tourism industry will be of immense benefit to the federal government of Nigeria, students, individuals and other researchers that wishes to carry out a similar research on the above topic in other to understand perfectly the challenges of hospitality and tourism industry. The Constantly Changing Expectations of Customers The customer is the King in the hotel industry or … Whilst this focus will continue, the implications for economic growth and corporate profits have to lead to a sharp sell-off in equity markets across the globe. Electronic check-in is the latest technology being embraced by the industry. Lack of capital.This is normally a big challenge because any individual or organization that wants to invest in this industry must have capital in terms of money as well as other resources such as land and labour. 6. "Current Issues and challenges of Hospitality and Tourism Industry." (2009). What travel restrictions and quarantine measures will impact us? Add in the fickleness of consumer decision-making? Filed Under: Employee Onboarding Tagged With: Hospitality Industry Employees, Hospitality Industry Labor Shortage, Onboarding in the Hospitality Industry. The quality of employees hired has a direct impact on brand reputation, revenue, and overall labor costs. Tourism Industry Trends. This is because the industry as a whole deals in a wide range of issues and aspects that need to be fully adhered to for customer satisfaction. This is because their service expectations are always changing meaning that they need to be matched at all costs. Whenever such costs go up, the industry has to find another way of covering up for this and most likely they can increase prices which will affect customer numbers. Top issues that will influence the global hospitality industry in the year ahead include sustainable development calls for green hospitality, labor cost, multicultural issues and higher education. (2009). Implications for Education and Hospitality Management . email. The study assessing the challenges of hospitality and tourism industry will be of immense benefit to the federal government of Nigerial, students, individuals and other researchers that wishes to carry out a similar research on the above topic in other to understand perfectly the challenges of hospitality and tourism industry. CAMPFIRE: A Zimbabwean Approach to Sustainable Dev. To start with, it’s essential to have someone monitoring all digital channels from review websites to Twitter, FaceBook, email, and beyond. Retrieved from http://moelwintravels.blogspot.com/2009/01/2009-tourism-trends.html. After all, customers are paying for service and they expect to get it. Combined with increasing competition, thanks partly to the growth of the economy of sharing, today’s hotel operators need to ensure they exceed expectations at every stage of their guests’ stay if they are to ensure long-term profitable growth. Problems Faced by HR in the Hospitality Sector. IvyPanda, 27 May 2019, ivypanda.com/essays/current-issues-and-challenges-of-hospitality-and-tourism-industry/. (2003). Businesses in this sector must also be willing to make changes. The relationship between tourism and development is one of the issues that have emerged in recent years and this is a major issue that has brought in governments, international bodies and different industry stakeholders. The restaurant industry in the U.S. alone employs about 14 million workers. At the same time, importing from other countries has its own set of risks. A mobile-friendly online application process, web-based onboarding, virtual training, and self-service tech, in general, will help attract savvy employees, get them ready for work faster, and help keep them engaged and satisfied over the long run. All Rights Reserved. An increase in international travel . This, Manzo reported, is an issue 78 percent of members identified as being of … 1. The rate at which technology has been evolving and emerging is too fast that if you are left behind, you will likely miss customers. It should be known that the demand for new facilities has been going up because of an increase in the number of customers. On the other hand, the cost of constructing new facilities has been skyrocketing every now and then posing a major challenge to players who want to expand to new markets. Customers don’t expect to have to pick up a phone—and they will even complain about the number of keyboard strokes or mouse clicks required to complete an online booking! Better roads are being constructed leading to the tourist attractions. It contains thousands of paper examples on a wide variety of topics, all donated by helpful students. But they are now doing more than just comparing your organization to direct competitors. This is IvyPanda's free database of academic paper samples. IvyPanda. The rapid growth of the industry has brought in a lot of challenges that need to be solved by all stakeholders. In this case it should be known that the challenges are numerous and complex. Linkedin . Customers? ‘Sustainable travel’ and ‘climate change’ listed as second and third biggest challenges. Improvements in transport and communication e.g. Different countries have enhanced their security measures because of an increase in crime and terrorism activities (Travels, 2009, p. 31). Many problems may relate to intercultural communication between managers and employees as well as between employees and hotel guests from different cultural backgrounds. Shortages are becoming an issue as the talent pool of suitable candidates shrinks. The hospitality industry accounts for 10% of the global GDP. Finding and retaining talent. Unfortunately, your browser is too old to work on this site. As such, this unit deals with the skills and knowledge required to develop and monitor a business plan. The hotel industry is one of the fastest-growing sectors of the world and an integral as well as an indispensable part of the Hospitality industry. As the demand for lodging and plane travel goes down, both total revenue and profit decrease. May 27, 2019. https://ivypanda.com/essays/current-issues-and-challenges-of-hospitality-and-tourism-industry/. "Current Issues and challenges of Hospitality and Tourism Industry." Cheaper sourcing may be easier in a global economy. To examine the perceived satisfaction of tourists. Challenges facing the tourism industry 1. African Journal of Hospitality, Tourism and Leisure Vol. Modern marketing is a management orientation and a systematic process integrating the techniques used by managers to influence demand. The hospitality industry is a sector of the broader tourism industry. Many hospitality companies have apps that enable check-in and virtual keycards, but leading hotels are going further by allowing guests to make spa appointments, order room service, control the thermostat, text individual staff members, and more. Quinion, M. (2005). Some of the challenges faced by the travel and tourism industry include: Taxation. As per the New Zealand Tourism Forecasts, the sector is up to 52%. Cyber crime issues 7. loadScript("//widget.aggregage.com/bi/&keyword-LI=n&blog-group=humanresourcestoday&keyword-selected-blog-id=7159&overwrite-keywords=true&nw=true&widget-form-javascript=true&hide=true&time=" + new Date().getTime() + "&ref=" + document.referrer); This field is for validation purposes and should be left unchanged. This has given the industry a big challenge because they have to meet the needs for new skills and labor at all costs to keep customers. But they can bring a lot of motivation and dedication to the job, especially if they provide adequate training. The restaurant industry in the U.S. alone employs about 14 million workers. Adding 800 million visitors a year is the equivalent of adding 8 or 9 Walt Disney Worlds to the tourism industry. Growth in the Sector = More Competition. The hospitality and tourism industry is facing a lot of challenges and this is bound to affect it in a broad way. Copyright © 2020 EF Operating LLC. As a matter of fact, the industry has been forced to obtain capital at high costs thereby affecting their operations. Younger workers are aggressively seeking jobs with a reputation for higher wages and better working conditions. Also, stay competitive with wages and benefits. Customers comparing you to their experiences in general—particularly when it comes to digital interaction and speedy service is one of the challenges facing the hospitality industry today. ‘Challenges of rural tourism development in Zimbabwe: A case of the Great Zimbabwe-Masvingo district’. professional specifically for you? Thus retaining best hospitality talent for a longer term is one of the major challenges faced by the hospitality industry. This paper aims to identify the challenges facing established universities in tourism and hospitality education and to provide insight of how these could be managed in the future. 5 Reasons to Streamline Your Hiring Process, 6 Best Practices to Help You Make Great Hiring Decisions. … Implications for Education and Hospitality Management Abstract: Hospitality organizations which are increasingly operating internationally create real challenges for their employees and managers to interact and effectively work with people from different cultural environments. The hospitality industry is a very vast industry that's faced with many challenges. The restaurant industry is also feeling more and more pressure to go digital. 3 (2); 1-12. In this case, there have been a lot of travel permit restrictions that have ended up affecting the hospitality and tourism industry. Current Issues and challenges of Hospitality and Tourism Industry. 1.7 SCOPE OF STUDY ), Managing Employee Attitudes and Behaviors in the Tourism and Hospitality Industry (pp. A recent survey carried out by Travel Technology Europe has revealed ‘economic uncertainty’ as the biggest challenge currently facing the travel industry, with 53 per cent of those polled putting it at the top of the list. In Uganda the Kampala- Kasese road leading to Queen Elizabeth National Park. Here are the top 6 management issues in the hospitality industry: 1. Plane ticketing is one of the current issues that the industry has to look at. 77–98). As the demand for lodging and plane travel goes down, both total revenue and profit decrease. The recent stock market ups and downs are a real indication of the turbulence that may impact tourism in 2016 and present new challenges to tourism professionals around the … As a matter of fact, the new environment under which the industry operates demands a new approach to labor and skills (Economy Watch, 2011, p. 27). Tourism is an economic problem for Jamaica based on the fact that with tourism there comes a possibility of importation of goods and services from other countries and we do not support our own countries produce in the form of service to the tourism industry. ii) to ascertain the impacts of the challenges facing hospitality and tourism industry towards the economic growth of Nigeria. New York: World Wide Words. Cyber-crime will continue to be another major challenge the travel industry faces. The demanding nature of the average consumer is skyrocketing in an era of instant gratification. Disruptions to production, initially in Asia, have now spread to supply chains across the world. Employers may also want to consider seeking out more WOTC-eligible job candidates to fill out their workforce. 1991. It’s essential to access a larger volume of talent in order to pick and choose the best options. There is need to stay ahead of customers and this is one of current issues that are facing the tourism and hospitality industry (Mitchel, 2009, p. 12). Need a custom Essay sample written from scratch by Retrieved from https://www.hotel-online.com/News/PR2010_3rd/Aug10_HospitalityPersonnel.html. What is WOTC Screening and How Can it Affect My Bottom Line? View Contemporary Issues in Hospitality Industry Research Papers on Academia.edu for free. For more information about the challenges facing the hospitality industry and the paperless onboarding solutions, contact our team today! In this case, people do not want to travel for long distances and this affects the industry in a broad way. They also expect to receive prompt responses no matter how they make contact with your organization. For full functionality of this site it is necessary to enable JavaScript. 1.7 SCOPE OF STUDY ‘Economic uncertainty’ highlighted as biggest challenge facing the travel industry. If you are the copyright owner of this paper and no longer wish to have your work published on IvyPanda. What can you do to meet them head on? Tourism is one of the sectors that governments heavily tax. We use cookies to give you the best experience possible. “Travel and tourism has great potential for growth, with potential for millions of jobs to be created in G20 countries,” the report on the forum summarized, “if industry … Therefore, simply lowering standards is not an acceptable solution for savvy business owners and hiring managers. If you continue, we will assume that you agree to our This aspect has increased the demand for hotels thereby piling pressure on the industry to increase their facilities. We surveyed participants at our first Hospitality Industry Forum on the major challenges encountered in the travel and hospitality industry in the Philippines. Let’s look at the various challenges facing the Hospitality industry. People want what they want and they want it NOW! Intercultural Challenges Facing the Hospitality Industry. Security and Safety. While those specific industries are more concerned about cyber terrorism, the hospitality business is more focused on preventing data and identify theft.On November 30, 2018, it was reported that Marriott International Inc. faced a breach that exposed the personal information of 500 million customers. Boomers who had their retirement plans put on hold due to the recession are looking for ongoing work. Peterson, J.H. Right now, the demographics of the available candidates are skewing older. According to the U.S. Travel Association, over 75 million international travelers visited the U.S. in 2016, and that number is expected to hit over 83 million by 2020. It’s no longer easy to supplement the shrinking local labor pool with workers from other countries. (2019, May 27). Especially, changes in how they operate to support workers in giving their best effort on an ongoing basis. Technology is something that is always evolving and any industry can not do without it. There are the 3 key challenges in hospitality recruitment: Hospitality recruitment challenge #1: Finding candidates. Africa's tourism industry has been hard hit by coronavirus lockdowns. iii) to establish the efforts taken by the government to combat the challenges facing the hospitality and tourism industry in Nigeria. The hospitality Industry & the impact of COVID-19 As the effects of COVID-19 spread across the entire world, the primary focus for governments and businesses is the safety of their people. The hospitality industry today faces major challenges compared to the past decades, including high competition and the overall decreased travel levels in different regions, in addition to the present hard economic times. Bar kin, D. (2002). The foodservice sector is also feeling the impact of globalization. The tourism crisis is the impacts that adding 800 million additional international visitors per year to the tourism industry, not to mention the increase of tourism visits that may take place within national borders. Intercultural Challenges Facing the Hospitality Industry. Even though it is good news for the country and their hospitality industry, however, there are some specific set of challenges faced by the organizations. This has mostly been complicated by the emergence of new technologies and trends that need to be satisfied and attended to. Regulation is another challenge because the industry does not operate in one definite location (Kummer, 2010, p. 29). Mitchel, J. You are free to use it for research and reference purposes in order to write your own paper; however, you must. The study assessing the challenges of hospitality and tourism industry will be of immense benefit to the federal government of Nigeria, students, individuals and other researchers that wishes to carry out a similar research on the above topic in other to understand perfectly the challenges of hospitality and tourism industry. Home / Hospitality / Five challenges facing the hotel industry 30 ... the hotel industry is facing a vast set of challenges. In this case, pricing trends have been changing depending on the product or service but this has had an impact on the number of customers (Kummer, 2010, p. 31). The hospitality industry faces labor and human resource challenges including the compression or shrinking of the labor force, union issues and escalating health care and benefit costs among others. That’s not counting the rest of the hospitality sector. IvyPanda. Overnight, hotel bookings were canceled, safaris postponed and cultural tours abandoned. To find out the key challenges faced by tourist in the Muscat region. For instance, ecotourism is an emerging industry as far as tourism and hospitality are concerned and this means that efforts should be directed towards the satisfaction of customers (Kummer, 2010, p. 18). Changes in the higher educational environment are having a tremendous impact on the education process, curricula, learning outcomes and instructional practices. That makes for one of the greatest challenges facing the hospitality industry and restaurants. Combined with the fact that hospitality is highly competitive and fast-paced, it's no wonder human resources departments encounter myriad … 1.5 Research Hypothesis In extreme cases, the industry has been forced to develop this skills and talents at huge costs. Economics. As a matter of fact, some people have been restricted to move to other places and this has been a major challenge to the industry as a whole. Also known as swap and share experiences, the sharing economy refers to the collaborative consumption of goods using a peer to peer service. It should be known that customers in the hospitality industry are always demanding unique products and services and this is up to all stakeholders to take up the challenge. Demand for product and services have become increasingly price sensitive and environmentally friendly. These candidates typically face significant barriers to hiring due to income, veteran status, disability, or history of incarceration. All this withstanding, the needs of the hospitality and tourism industry will continue to change and emerge as time goes by meaning that all stakeholders should be up to date with what is needed. The travel industry, therefore, works towards offering products that allow the average tourist or traveler to experience something they have never experienced before. The product aspect of the tourism and hospitality industry has been changing in recent years and this is a trend that needs to be coped up with. May 27, 2019. https://ivypanda.com/essays/current-issues-and-challenges-of-hospitality-and-tourism-industry/. Hospitality organizations which are increasingly operating internationally create real challenges for their employees and managers to interact and effectively work with people from different cultural environments. 2019. Tourism is a highly competitive industry and requires good and innovative marketing that captures a place’s essence while making people aware of the locale’s tourism offerings. To evaluate the present status of tourism sector. The coming year, things will be even more challenging. It’s crucial to pay increasing attention to creating an excellent workplace culture. Tatiana Rokou / 09 Jan 2020 08:08 11168. Your privacy is extremely important to us. Armed robbery 5. Credit card fraud. The hospitality industry faces labor and human resource challenges including the compression or shrinking of the labor force, union issues and escalating health care and benefit costs among others. These include: (1) improving brand image, as customers are drawn more and more to environment-friendly companies and potential employees are looking to be part of companies that make a difference in the community; (2) benefiting from economic incentives led by governments for the development of green businesses; or (3) improving cost efficiency, by implementing better working procedures and environmentally friendly tech… In this case, customers are not free to travel to different destinations before being checked up. However, you can mitigate this issue with the implementation of onboarding that integrates with e-Verify. However, the unique selling point (USP) of travel companies or destination marketing organizations (DMOs) lies in providing a rare and unique experience. In S. Kusluvan (Ed. Security of Funding: significant investment is required from the private and public sector for facilities, major infrastructure development and modernizing and … But they do expect to be able to pre-order and pay for their meals on the smart device of their choice whether they are dining at a drive-in or requesting room service at the hotel. document.getElementsByTagName("head")[0].appendChild(e) Value chain analysis and poverty reduction at scale. Case examples are used to identify and describe challenges faced by governments, communities, and the cruise industry. Challenges that facing hospitality include will include operating issues, marketing issues, technological issues and economic issues. There are other challenges that the industry is facing. Identity theft 8. Economy Watch. Changes in customer segment have presented challenges in customer expectations. This has mostly been complicated by the emergence of new technologies and trends that need to be satisfied and attended to. And they can be as unpredictable as technology. Hospitality and food service organizations should look for ways to use technology to improve the overall digital customer experience from on-site kiosks to their website and social presence. May 27, 2019. https://ivypanda.com/essays/current-issues-and-challenges-of-hospitality-and-tourism-industry/. Developments and challenges in the hospitality and tourism sector Issues paper for discussion at the Global Dialogue Forum for the Hotels, Catering, Tourism Sector (23–24 November 2010) Geneva, 2010 INTERNATIONAL LABOUR OFFICE GENEVA

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