NAME: NEHA.

N
CLASS: MBA-II
SUBJECT: HOTEL MANAGEMENT
TOPIC: PROBLEMS FACED IN HOTEL
INDUSTRY
Definition of Hotel Industry

Hotel industry is all forms of business relating to the

provision of accommodation in lodging, food and
drinks and various types of other services that are
interconnected and form intended for the public
service, both of which use the lodging facilities or
who simply use the services or the production of
certain of the hotel.
Need of knowing challenges in hospitality
industry
To make your hotel always running and prospering, it is
necessary to know and overcome the challenges in hotel
industry.
You need to imbibe new technologies, implement strategic
decisions on the basis of data that is collected from disparate
online sources and upturn your hotel business.
Despite hospitality businesses being a profitable
one, hoteliers shared their problems and challenges
out of which a few major challenges in hotel
industry faced by them is discussed here
The Constantly Changing Expectations of
Customers
 The customer is the King in the hotel industry
or hospitality industry on the whole.
 The whole purpose of the industry is to keep
customers happy.
 But the margins are now decreasing.Keeping
customers happy is not enough anymore. As a Hotel
Manager, you need to find ways to delight customers
now.
 You would need to find a way to bridge the gap
between perception and actual delight.
Change in marketing trends and
dynamics
 Change in the advertising and marketing trends often
create a problem for the hoteliers.
 The traditional marketing methods aren’t that
effective now.
 Online marketing is a surefire method. Online deals
are booked by genuine guests and major transactions
are paid in advance. Engaging your guest on social
media, messaging apps and other online sources can
work wonders and give you results in few days.
Political and Security challenges
 This again is one of the top management issues in the hospitality
industry.
 The issue of managing the macro issues dealing with the socio-
political as well as economic challenges.
 The threat of terrorism today has changed how people travel and
where they travel.
 Hotel managers are tasked with the duty of ensuring that proper
surveillance systems are installed and maintained throughout so
that guests can feel comfortable and safe.
 To deal with security challenged, hotel managers have to rely on
high tech gadgets and software, which can be expensive to
acquire and maintain.
 Improper marketing effort
 As the technology is improving day by day, there are lots
of options available for the hotels in capturing their
market space online.
 But according to a recent survey in the year 2016,
almost 70% of the hotels across the world still follow
the old marketing practices.
 Due to poor marketing efforts, sales and brand
recognition gets affected to high extent. The current
trend denotes that hotels are slowly moving towards
OTA marketing and hotel management software to
ease the workload and increase ROI.
Skilled labour shortage, staff turnover
and Irregular working hours
 In recent years, the high turnover and increasing competition has
only added flame to the issue of the skilled labour shortage in the
hospitality industry on the whole.
 Because customers expect a lot more nowadays, employees in the
hospitality industry, in turn, are forced to deal with long and
sometimes irregular working hours.
 To make sure that everything is running smoothly at all times,
managers have to find new ways to manage their stress because
they cannot afford to lose it or burnout.
 According to research from BigHospitality, salary is the most
important factor to consider for retaining best staff in the
hospitality industry.
Security challenges
This is one of the major problems in hotel industry. Different types
of security challenges are,

1. General theft and other crime

2. Public violence
3. Terrorism
4. Armed robbery
5. Credit card fraud
 6. Cyber crime issues
7. Identity theft
8. Sexual abuse on women
9. Racial discrimination
10. Risk of food poisoning
PROBLEMS FACED BY HOTEL INDUSTRY
IN INDIA
When compared with international standards, the Indian hotel industry is on a sad
ground. India has a world image of a country surrounded by poverty, safety issues, political
instability and diseases.This creates a very negative image of both the hotel and tourism
industry.
When compared with international standards, the Indian
hotel industry is on a sad ground. India has a world image of
a country surrounded by poverty, safety issues, political
instability and diseases. This creates a very negative image of
both the hotel and tourism industry. However, as a travel
destination, India's name is still very prominent. This creates
major expectations in the eyes of travellers and hotel guests.
How has the hotel industry changed all over the
world and in India within the past decade?

 Today, an average traveller or guest is aware of the facilities

provided at hotels at a competitive price. Budget hotels are in
spring, whereas luxury hotels maintain their quotient
 With the increase in corporate travel, travel companies are looking
at budget hotels, where one gets bed and breakfast at a
competitive rate
 Hotel bookings are also not carried out through travel agents, sales
and marketing personnel but rather, through online travel and
tourism websites. Online facilities enable a traveller to find their
choice of hotel easily, as hotel pricing is compared online, and
reviews make it easy for guest to select hotels
 Today, guests have easy access to review hotel services and rate
each hotel as per the services provided. Thus, self serviced hotels
with no frills are the need of today
Where does India stand in the hotel management
industry now? What are the main factors making
India lag behind in this field?

 Guests today want to try local cuisine, as compared to earlier

days where International cuisine was in demand. The number
of foreign tourists has decreased in metro cities, and is
limited to travel destinations. Thus, international cuisine is
slowly losing importance, while at the same time, there is a
lack of professionals in hotels specialising in local cuisine
 Indian industry is people-based instead of process-based. We
are moving towards that but it will take another decade until
we have self-serviced hotels. A lack of technology is seen
How far has technology been integrated into the
Indian hotel management industry?
 Technology is used mainly to promote, review and sell at competitive
pricing. Indian hotels have a long way to go to creating hotels where
everything from check-in to check-out is automated
 Records maintained in smaller hotels are still non-digitised, and the lack
of technology in hotels increases the required manpower but reduces
perfection
 Technology elevates a guest's experience. In today's tech-driven world,
technology and people can work hand in hand to provide a memorable
experience for guests
 Most top hotel chains are still trying different ways to achieve
standardisation, especially in the food production department. Trying to
serve a standard taste of a particular dish throughout the entire hotel
chain, all over the country or the world, is a challenge

A major problem with India's hotel industry is the lack
of skilled and retainable employees. How can hotel
management institutes tackle this issue?

 Employees in the Indian hotel industry are not as well-rewarded in

terms of payment and perks as offered by other industries. Thus,
we see a movement of young hospitality professionals with two to
three years of experience moving to other countries offering
better living conditions and rewards
 Hotel management institutes need to plan short-term skill based
courses to enable students to master job oriented skills and move
ahead with the required qualification
 Students normally undergo industrial training in the second year
or during the tenure of the course. This is when they should be
empowered with more, higher skills, rather than making them do
basic work which they have already mastered in college
 CONCLUSION

 We have outlined a few of the top management issues in the

hospitality industry. It is important to acknowledge the issues
few of which would continue to pose threats in the future.
 We need to understand the nature of these threats and then
devise ways to counter these management issues. It is important
to be ahead of the pack by tackling these major issues.
 Remember, “Failing to Plan is Planning to Fail”.
THANK YOU