The Bright Future of Tourism and Hospitality

1. retiring too soon. Many workers today retire at younger ages than. as it was in prior
years. Workers as young as 62 years old can get benefits from the US social security
system, and many employee retirement plans base eligibility on years of service rather than
age. Some retirement plans, particularly public ones, allow participants to work 25 or 30
years and still be eligible for benefits when they are 55 or younger. People who retire earlier
are more likely to use their leisure to travel and experience the globe, which benefits the
tourism and hospitality industries.

2. A longer lifespan. Today, the average person may anticipate living past the age of 70,
and many will live even longer. In contrast to prior generations, where the average life
expectancy was significantly lower, an increasing number of older, retired people are
wealthier thanks to pension plans and healthier, which expands the pool of prospective
clients for businesses in the tourist and hospitality industries.

3. The six-day work week used to be the norm for the majority of employed individuals.
Currently, the five-day workweek is the norm, although the four-day workweek is spreading
and giving people more time for other pursuits. Many people are now able to take weekend
trips and go to distant locations thanks to the increase in leisure time that results from faster
and simpler transportation.

4. increased financial flexibility. The typical household now has more money to spend.
Higher earnings and households with two earners are to blame for this. The increased
disposable income is primarily used to purchase products and services for consumers. An
substantial portion goes to the tourist and hospitality sectors;

5. increased mobility. Every year, traveling becomes more convenient thanks to better
roads and transportation. The amount of time needed for a car to go between any two
points has decreased thanks to the contemporary highway system. With the aid of modern
technology, new planes can carry more people while consuming less fuel. Sales in the
tourism and hospitality industries benefit from these increases in travel; and

6. reduced family sizes. The size of families has shrunk on average. so that it is simpler for
the family to travel and travel costs less if few family members travel.

Issues in Tourism and Hospitality

Although the future of the tourism and hospitality industry is bright, it is not without
problems. Those pursuing careers in tourism and hospitality will find it necessary to obtain
knowledge with regard to a number of issues that the industry must face in the future. Some
have been issued for many years, but no final solutions have been found. Others are
emerging issues brought about by social, economic, and technological change.

These issues can be categorized under the following headings:

1. marketing:
2. legal:
3. human resources;
4. operations; and
5. consumer affairs

Marketing Issue
The marketing issues are changing demographics, changing vacation patterns, market
segmentation, frequent guests programs, maturation in segments of the fast- food industry,
and consolidation.

Changing Demographics
Developed nations are aging populations. The median age is currently 33 and is expected
to rise in the upcoming years. The tourism and hospitality industries need to address this
issue. The tastes of an elderly population are different from those of a younger population.
As a result, service providers will need to modify their service offerings to account for the
shifting consumer tastes.
The rise in single-parent homes is a further indicator of changing demographics. Families
with just one parent typically earn less money for discretionary spending. Service providers
will need to create new service items that will appeal to this demographic segment at
competitive costs in order to tap into this market.
The continued rise in the proportion of people who travel for leisure rather than for business
represents a third demographic trend. A whopping 74% of domestic passengers go there
largely for leisure. The growth of this group's share of the travel market over the past 45
years is entirely their fault, and it will undoubtedly continue.
The increase of international passengers is the fourth demographic change. One of the
main factors is the fact that travel is now more accessible to everyone due to the decline in
the cost of transportation in relation to income. Another factor is the expansion of vacation
time and holidays in many nations.

Changing Vacation Patterns

People in developed nations are altering their vacation habits. The once-a-year two-week
vacation is becoming less and less common. Vacations are become shorter and more frequent
for a larger number of people. A three-day holiday weekend is now more frequently combined
with two of people's annual vacation days as mini-vacations. By doing this, they are able to take
a five-day mini-holiday while only using two actual vacation days.

Market Segmentation

Marketing segmentation has been the main buzzword in tourism marketing since 1980. Up
until the late 1970s, hotels made an effort to appeal to large mass markets. They wanted to
appeal to a wide range of potential customers. Due to the limited service properties' recent
success, more properties have been created with certain market segments in mind. All-suite
properties, resident properties, sub-budget properties, and a range of budget properties,
which differ by their different services and amenities, are some of the types of lodge
properties that will become obvious. Examples of market segmentation have been evident
in food service in the past 10 years. A number of restaurants that additionally offered
extensive something-for-everyone menus have begun to see reductions in business, as
customers have chosen to patronize restaurants offering specialized service products. As
new market segments are identified, properties designed to appeal to
Those segments are likely to be developed.

Frequent Guest Programs

Some lodge operators have started to create programs to attract repeat business as a result
of the abundance of properties and the growing rivalry among them. These programs offer
credits to frequent visitors and are based on the frequent-flyer programs that were
successfully implemented by numerous airline corporations. They can be exchanged for
discounts, freebies, upgrades, complimentary dinners, or a wide range of extras. There will
undoubtedly be more of similar programs as the competition heats up. Many think that
these initiatives will earn the same popularity among hotel guests as they have among
airline passengers.

Maturation in Segments of the Fast-Food Industry

Fast-food sector segments are no longer able to expand as much as they once could. Since
the demand for hamburgers is not increasing as quickly as it previously did, business
owners find that in order to sustain the appropriate level of sales, new goods must be
developed. Pizza, salads, fowl, and other meat products are now available in places that
formerly only sold hamburgers. Food service providers will need to create speciality goods
to maintain a sufficient market share as consumer tastes continue to shift.

Consolidation in the Commercial Lodging Industry

Some industry analysts currently forecast that the number of significant national hotel
chains will decline in the upcoming years and that a small number of companies will
dominate the lodging sector by purchasing smaller chains of local or regional hotels. This
will make it possible for profitable businesses to raise the money needed to take their
operations global.
All commercial hotel activities will be significantly impacted by the consolidation trend. It will
be challenging for independent businesses and owners of smaller chains to compete with
aggressively promoted domestic and foreign brands.

Legal Issue
The legal issues are liquor liability and ethics in the tourism and hospitality industry.

Liquor Liability
The public's worry over the rise in drunk driving-related car accidents in the past was
growing. Currently, more than half of all car accidents are caused by drinking or using
drugs. As a result, citizens pushed state legislators to take action. Legislators have
responded by reducing the blood alcohol threshold at which someone is deemed inebriated
and by toughening up on offenders. Additionally, new rules regarding the serving of
alcoholic beverages have been implemented in a number of US states. New rules have
made it unlawful in one US state to offer drinks at a discount, or "happy hour." In a number
of places, businesses and their owners may be held financially liable if they provide alcohol
to a drunk person who causes damage or injury after leaving the establishment. In some
places, this has caused tremendous increases in the cost of liability insurance. This
prompted some bar owners to go out of business. It has also caused some restaurant
owners to stop serving alcoholic beverages. Some restaurant and bar owners have
changed their market strategies. They now feature and promote non-alcoholic drinks. As
societal attitudes toward alcoholic drinks continue to change, it will be necessary for food
service and lodging operators to adjust.

Ethics in the Tourism and Hospitality Industry

Ethics is an academic discipline that deals with the study of codes of moral conduct
practiced by individuals or groups. Business ethics refers to the application of a particular
moral code to relationships, activities, and discussions made by individuals in business or
industry. It is the code that enables the individual in business to distinguish right from
wrong; to differentiate between ethical and unethical behavior.

Ethics in the tourism and hospitality industry has been the issue for thousands of years. The
business practices of some operators of tourism and hospitality establishments are
questionable. For example, a manager of a new restaurant may hire 20 waiters but intends
to keep only the 12 most able after the second week of operation. An owner may fail to
report all sales on his income tax returns. A tour guide may cheat on his income tax by
failing to report all his tips. Another owner may cheat on his taxes by charging personal
expenses to the business. An employee in the purchasing department may accept gifts from
vendors in return for buying inferior products. Business ethics is likely to remain forever in
the list of tourism and hospitality issues.
Human Resource Issues
Some of the human resource issues are sexual harassment, employee turnover, employee
assistance plans, and employee empowerment.

Sexual Harassment
Sexual harassment may be defined as unwelcome sexual advances, requests for sexual
favors, and other verbal or physical conduct of sexual nature that take place under 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 unreasonably interferes with the person's work performance or creates an intimidating,

hostile, or offensive work environment. Most cases of sexual harassment involve complaints
by females about co- workers or superiors. In the last 10 years, the number of cases has
grown because an increasing number of women have become willing to speak out.

Because employers are liable for the actions of their employees at work, it is very
important for employers to take the following steps:

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.

Employee Turnover
One of the biggest problems facing managers of tourist and hospitality businesses is
employee turnover. Managers constantly struggle with replacing experienced staff who
leave with less-experienced ones due to turnover rates that average about 100% annually.
Many managers feel they have little option but to absorb the high training expenses
associated with turning novice substitutes into productive workers or bear the equally high
costs of dealing with untrained staff when faced with inexperienced replacements. Few
people are aware that there is a third option, which is to keep good staff and lower turnover.
Many managers in the tourist and hospitality sectors are aware of the need to lower
turnover rates. These include fair treatment of employees, suitable working conditions,
reasonable work schedules, and adequate pay and benefits.

Employee Assistance Plans

Employee assistance programs (EAPs) are one of the traditional ways for employers to pay
attention to the challenges of their employees, thus they are included in the discussion of
important issues in the tourist and hospitality sectors. Employees in the tourism and
hospitality sectors may experience psychological troubles, family problems, money
problems, legal problems, health problems, or educational problems.
The tourism and hospitality manager who implements EAPS for the benefit of staff
members will eventually cultivate a more devoted workforce that is eager to go above and
beyond to meet the operational objectives of the company. Additionally, a supportive
manager will lower staff turnover.

Employee Empowerment
Managers in certain tourism and hospitality businesses have created policies and practices
that staff members are expected to adhere to. Directives like rigid restrictions on the amount
of hand towels that can be provided to each guest or prohibitions on changes on special
dinner menus are examples of such restrictions. These could influence how a visitor feels
about a specific accommodation or food service provider in general. These guidelines might
be sufficient for some visitors to determine they'll never come back. The ineffectiveness of
imposing stringent regulations covering every aspect of guest service has been recognized
by many owners and managers. They now implement guest-focused rules as a result. They
provide their staff the authority to take actions that will raise the standard of service to
guests without having a negative impact on operations.

Operations Issues
The operations issues include automation, smoking/nonsmoking areas, sanitation and
public health, and recycling solid waste.

Automation
Automation is the process of using electronic and mechanical equipment and machinery to
complete some or all of the tasks associated with a given enterprise. 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 is here to stay. Computerization will affect the industry
principally in three areas, namely:
1. Communications. Itineraries for business travelers constantly change to accommodate
their evolving needs. Making alternate agreements with suppliers or distributors currently
takes a lot of time and is often done from payphones, hotel rooms, or secretary phones. A
business traveler can contact with any travel company from anywhere, even airlines, using
a portable communication data unit (PCDU), such as a portable phone or computer, and
can also change or confirm his travel plans;

2. Interactive television is now being deployed in various cities, according to interactive

CRTS. It will be utilized by other cities in a few more years. It's probable that a significant
portion of the ordering procedure will move to interactive television. A database that can be
accessed by any number of users can be configured with particular order forms. Travel
counselor productivity will increase if calls are cut in half via interactive CRTs.

3. Removal of Tickets. There is no longer a requirement for travelers to carry a physical

ticket when making hotel or airline reservations. An individual who is traveling can order
items for his upcoming journey on his interactive television and enter their travel card into
the corresponding slot on the console's side. The computer magnetically codes his card
once all preparations and verification have been made. The tourist arrives at the airport,
proceeds to the appropriate gate, and inserts his card into a slot as he boards the aircraft
just before he hangs up his carry-on luggage. He clicks a button, and if the result is
favorable, a receipt emerges from the wall.

Finding the most effective method to provide the traveler's documentation is currently one of
the main challenges facing agents. The removal of tickets has the most effect on the
distribution system because it eliminates the trustee function of the agent. As a result, the
agent who only took orders will likewise be fired.
Currently, certain hotels and restaurants have become so automated that customers and
guests no longer interact directly with any staff members. There are motel facilities where a
guest can check in without speaking to the desk clerk by inserting his credit card into an
electronic gadget. A touch-sensitive screen on the television in the guest room can be used
to check out.
It is interesting to note that food service and lodging establishments have tended to
maintain the appearance of service even though automated devices have been installed.
For example, some hotels with automatic elevators have continued to hire personnel to run
the elevators. Guests are still given a high level of service using more modern and efficient
equipment than the older manual elevators. The technological capacity to automate grows
daily and the tourism and hospitality industry will have to determine the extent to which it
should use the technology.
Smoking/Nonsmoking Areas
Customers of tourist and hospitality businesses are increasingly demanding smoke-free
dining places and smoke-free lodging, and the industry will continue to make efforts to
satisfy these needs. This is especially true in locations where legislation mandates the
creation of suitable facilities. As a result, eateries divide up their dining spaces to satisfy
nonsmokers' needs. Some even upgrade or install ventilation systems.

Many lodging establishments have set aside accommodations for nonsmokers. In some
hotels, smoking is prohibited in the lobbies, corridors, elevators, and other areas. Airlines
have also established nonsmoking areas. The prohibition of smoking in tourism and
hospitality enterprises is an issue that is of increasing importance to owners and managers
in the coming years.

Sanitation and Public Health

Sanitation is a key concern in the food service industry. Everyone believes that every effort
should be made to prevent illnesses brought on by the handling of food or by the meal itself.
In the sector, proper food management has long been a problem. Always make sure that
food is purchased from trustworthy vendors, according to managers. To stop bacteria from
growing on food, it is necessary to keep it at the proper temperature. To avoid rodent or
insect infestation, it should be set up in the right environment. To guarantee that food isn't
contaminated while being prepared, the surfaces of the equipment must be well cleaned. In
the food service industry, washing is required for various reasons, including employee hand
washing, cleaning of the fresh food to remove chemical residue, as well as the thorough
washing of china, glassware, flatware, pots, and pans that are used in the preparation and
service of food and beverages.

Recycling Solid Waste

In past years, there has been a slow-motion closure of the solid waste landfills and a rising
awareness of the negative effects of either burning solid trash or disposing of it in the
ocean. Major garbage disposal issues have arisen as a result in some locations.
In some cities, the expense of disposing of solid trash is rising to the point where the
government and residents cannot afford it. Separating recyclable materials like glass,
plastic, and other objects from other solid wastes significantly reduces the amount of waste
that needs to be disposed of in many of these regions. The trend toward recycling is likely to
increase. Many in the tourism hospitality industry who have not been previously affected by
this is eventually find it necessary to adopt a recycling program.

Consumer Affairs Issues

The consumer affairs issues are fire, safety, truth in menus, and diet/nutrit health.
Fire Safety
In the tourism and healthcare sectors, fire safety has long been a major concern. Taverns,
inns, and hotels built of wood in earlier ages were frequently destroyed by fire. Many were
completely destroyed by fire, and many more perished or suffered permanent disabilities.
Hotels, motels, and other lodging facilities have implemented numerous innovations over
the course of the 20th century, including advancements in building design and construction
as well as fire safety technology. Examples include improved sprinkler systems, automatic
systems to call the fire department, electronic smoke detectors, and more. People become
safer as a result of these systems.
However, there are still a number of fire-related risks to be taken into account. For example,
in the event of a fire, visitors to hotels and other lodging facilities may be put in danger by
the toxic smoke produced when furnishings, fixtures, and fabrics made of man-made
materials burn. Many of the synthetic fibers used in wall coverings, carpets, draperies, and
upholstery during a fire emit toxic gases that can be even more harmful than the flames
themselves.
Construction-related issues are yet another issue. To cut down on heating and cooling
costs, new buildings were well-insulated in recent years. Some buildings had windows that
couldn't be opened. Very intricate central systems were in place to regulate the temperature
and air. The risk of smoke spreading quickly in a fire in these structures exists.

Reality in Menus
The creation of truthful menus is an ethical practice that food service companies should
adhere to at all times. However, a small percentage of establishments have created menus
that are not realistic representations of the cuisine they provide. For example, some serve
US Choice cattle when their menu specifically lists US Prime steak. Others ordered
amounts that contained fewer ounces than what was specified on the menu. Others,
however, have omitted to use the menu's recommended items and have substituted other
goods instead, such as substituting chicken for turkey, margarine for butter, generic goods
for name-brand goods, and domestic goods for those from abroad.

Diet/Nutrition/Health
Many food service providers are modifying their menus to cater to the changing public
tastes since the public is becoming increasingly worried about eating healthier meals that
are lower in fat and calories. Some restaurants dedicate portions of their menus to diet-
friendly food, while others designate certain menu items for diners who are looking for food
that is low in salt and cholesterol. A growing number of eateries make an attempt to draw in
customers who are interested in eating well. Some restaurants have taken unhealthy food
off their menus.
Healthy eating will undoubtedly remain popular. In the coming years, successful food
service providers will need to pay closer attention to the nutrient composition of food.
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 10 years. This tremendous increase presents great challenges and career
opportunities for tourism and hospitality graduates nowadays. According to John Naisbitt,
the futurist, the global economy of the twenty-first century will be propelled by three super-
service industries namely telecommunications, information technology, and travel and
tourism. The following tourism and hospitality items are but a few examples of the wave of
the future:

1. Increased speed and shopping use of the Internet in developed countries; extended
reach in less-developed countries;
2. Extended reach in less developed countrie
3. improved security of personal information; 4. robotic labor sources;
4. Robotic labor sources
5. reservation systems with more sophisticated, voice-activated, artificial intelligence;
6. improved navigational systems for rental cars;
7. electronic entertainment venues in rental cars and on planes and cruise ships:
8. upgraded Internet personal digital assistants for operations; 9. marketing mass
customization;
9. Marketing mass customization
10. comprehensive branding campaigns for large and small operators; 11. virtual online
customer communication;
11. Virtual online customer communication
12. just-in-time seats/rooms/car inventories;
13. electronic travel agents;
14. blended hybrid accommodations;
15. global anti-terrorist microchip security systems;
16. more nutritional fast-food offerings;
17. emphasis on ecotourism; and
18. improved customer relationship marketing information.