The paper "Hospitality Industry Change" is a great example of management coursework. In the last few decades, the tourism and hospitality industry has emerged one of the leading industries in the global economy (Jones and Lockwood, 2004). The tourism industry is considered an important foreign exchange earner which contributes to the growth of the economy, creation of employment and attraction of investments. Nevertheless, over the years, the hospitality industry has undergone some changes that have affected its operations (Jones and Lockwood, 2004). This has made the industry more complicated and expensive. In order to overcome these changes, hotel businesses have the responsibility of coming up with strategies in order to prevent failure (DiPetro, 2010).
This paper will outline the concept of change with regard to the hospitality industry. It will also critically analyse the impact of change on the industry using relevant models and it will also discuss how corporations respond to these changes. The hotel industry is undergoing a period of irreversible changes and is expected to be very different by 2020 (Davidson and Cope, 2003). The digital technologies are somewhat shifting power to the customers.
In addition, customers are also changing. In the next years to come, there will be digital natives who would have the desire for authentic local experiences. In addition, technological innovation has changed the marketing and promotional strategies of the hotel industry (Yang and Fu, 2007). Today, marketing is done through the use of information technology systems. For instance, online booking has changed the operation of this industry. Also, there are new destinations emerging in the hotel industry. It is expected that the emerging markets will overtake developed markets with regard to international arrivals.
Tourism is expected to grow in the long run. These can be attributed by the expected increase in the population of silvered hair tourists and growth of middle-class people (Jin-zhao and Jing, 2009). The global population is aging thus increasing the amount of disposable income and more time to travel (Davidson and Cope, 2003). Another megatrend that supports the growth of the hospitality industry is technological innovation. Digital innovations will enable travel and hospitality companies to engage with customers and boost brand and loyalty.
In addition, a healthy lifestyle is expected to be important in tourist’ s decisions. Aging tourists, a growing middle class and technological revolution will contribute to boosting health trends (Chathoth, 2007). The profitability of hospitality industry has declined as a result of economic recession (By, 2005). In the last 20 years, the hospitality industry has from time to time being affected by exogenous shocks from the drop in tourists flow but has recovered repeatedly. Global implications affect the ability of tourist to travel and has presented severe crisis in the industry.
Decreasing demand for travel and leisure threatens the industry’ s growth dramatically (By, 2005). Reasons include job uncertainty, economic failure, financial inability etc. However, in the years to come, turbulent times facing the hospitality industry is expected to decline. Porter’ s Five Forces can be utilized as a business strategy in the Tourism and Hotel industry since it influences the price, cost as well as investment. Therefore, the feasibility and profitability of the industry can be resolved by getting solutions to the following aspects. They include a barrier to entry, the threat of substitute products and the bargaining power of suppliers and buyers.
Buhalis, D., & O‘Connor, P. (2005). Information Communication Technology Revolut ionizing Tourism. Tourism Recreation Research, 30(3), 7-16.
By, R. T. (2005). Organisational change management: A critical review. Journal of Change Management, 5(4), 369-380. doi:10.1080/14697010500359250
Chathoth, P. K. (2007). The Impact of Information Technology on Hotel Operations, Service Management and Transaction Costs: A Conceptual Framework for Full-Service Hotel Firms. International Journal of Hospitality Management, 26(2), 395-408.
Davidson, R. & Cope, B., (2003). Business Travel: Conferences, Incentive Travel, Exhibitions, Corporate Hospitality and Corporate Travel, Pearson Education Limited, Essex, Great Britain
DiPetro, R. B. (2010). Impacts and implications for hospitality operations: Key issues for ICT applications, 19, pp 47-67.
Jin-zhao, W. & Jing, W. (2009). Issues, Challenges, and Trends, that Facing Hospitality Industry. Management Science and Engineering, 3(4), 53-58.
Jones, P., and A. Lockwood. (2004). The management of hotel operations. London: Thomson Learning.
Porter, M. E. (2003). Strategy and the Internet, Harvard Business Review on Advances in Strategy, Harvard Business School Publishing Corporation.
Yang, H. O. & Fu, H.W. (2007). Creating and Sustaining Competitive Advantages of Hospitality Industry. Journal of American Academy of Business, 12(1), 113-119.