THC III Chapter 4

Current trends and issues in the Tourism and hospitality Industry

Issues in Tourism and Hospitality

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 issues for many years others
are emerging issues brought about by social, economic, and technological change.

These issues can be categorized under the following:

1. Marketing
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- the population of developed countries by aging. The continuing
growth in the number of people travelling for personal rather than for business purposes.
Changing vacation - the traditional once a year vacation of two weeks at present, more people
vacations are becoming shorter and more frequent.
Market segmentation - This allows the company to allocate the appropriate resource to each
individual segment which allows for more accurate targeting across a variety of marketing
campaigns. (e.i from lodging only to partnership of restaurant, casino, pool, bar, sightseeing)
Frequent guest programs - offer hotels/restaurants the opportunity to encourage repeat customers
by providing them with rewards for their continual use of the business.(e.i giving discount)
Maturation in segments of the fast-food industry – operators find it necessary to develop
products to maintain the desired sales levels. (e.i offering new products once a week, for family
treats, all time favorite)
Consolidation - is to combine assets, liabilities, and other financial items of two or more
entities into one. The reasons behind consolidation include operational efficiency,
eliminating competition, and getting access to new markets.
2. Human resource – some of the human resource issues are sexual harassment, employee
turnover, employee assistance plans, and employee empowerment.

Sexual harassment – may be defined as unwelcome sexual advances, request for sexual favors, and
other verbal or physical conduct of sexual nature.

Employee turnover - refers to the total number of workers who leave a company over a certain
time period. It includes those who exit voluntarily as well as employees who are fired or laid
off—that is, involuntary turnover. (e.i awol or absent without leave.)
Employee Assistance Plans – who benefits the employees will eventually develop a more loyal
workforce, one that is willing to make a great effort to attain the operational goals of the
enterprise.(e.i the future benefits of the organization for the employees that include health
care, safety, bonuses, and retirement fund) In addition if the manager who helps the
employees will reduce employee turnover.
 Employee Empowerment – Many owners and managers have realized the ineffectiveness of
setting strict rules governing every detail of guest service. Employee set policy for guest
orientation. Managers also empower their employees to make decisions that will improve the
quality of service to guests without having a negative impact on operation.
3. Operation Issues – the operation issues include automation(using of electronic and mechanical
equipment), smoking/non smoking areas/ sanitation and public health, and recycling solid
waste.
4. Consumer affairs – issues are fire, safety, truth in menus, and diet/nutrition/health

The future of Tourism and Hospitality

a. Increased speed and shopping use of the internet in developed countries.

b. Extended reach in less developed countries
c. Improved security of personal information
d. Virtual online customer communication
e. Improved customer relationship marketing information

THC III Chapter 5

Managing sustainable Tourism and Hospitality
Research shows that tourism and hospitality is a useful tool for economic development that can
be used to alleviate poverty. Developing countries recognize the important contributions of the
tourism and hospitality industry particularly in the establishment of small local industries.
(having research or watching trends online is important to keep update what is happening in the
world)
United Nations World Tourism Organization - Providing alternative employment and
income opportunities for local communities; Increasing awareness towards the
conservation of natural and cultural assets, both among locals and tourists. Respecting
natural and build environments will be the country’s legacy for the future generations.