CURRENT

TRENDS AND ISSUES

IN THE
TOURISM AND HOSPITALITY
INDUSTRY
At the end of this chapter, you
should be able to:
1. Discuss the social and
economic changes that suggest a
bright future for the tourism and
hospitality industry;
2. Be familiar with the specific
issues that owner and managers
of the tourism and hospitality
establishments are likely to face
in the following areas:
MARKETING, LEGAL,
HUMAN RESOURCES,
OPERATIONS, AND
CONSUMER AFFAIRS
3. Identify the steps taken by
the owners and managers of
tourism and hospitality entities
to address the major issues
confronting the industry
 THE BRIGHT FUTURE
OF
TOURISM AND HOSPITALITY
1. EARLY RETIREMENT
•Early retirement is beneficial for the
tourism and hospitality industry.
2. LONGER LIFE SPAN
•Pensioner and healthy retired citizens
provides potential customers.
3. SHORTER WORKWEEK
•Increase in leisure time will make
employed potential customers to travel
and enjoy their day free time.
4. GREATER DISPOSABLE INCOME
•Higher wages will create an
additional disposable income for
average families.
5. GREATER MOBILITY
•Improved roads, better transportation,
and new planes will make the travel
shorter, easier and comfortable.
6. SMALLER FAMILIES
•Fewer members in the family will make
the life of every average family have
extra money for leisure and comfort.
 ISSUES
IN
TOURISM AND HOSPITALITY
ISSUES CATEGORIZATION
1. MARKETING
2. LEGAL
3. HUMAN RESOURCES
4. OPERATIONS
5. CONSUMER AFFAIRS
 MARKETING ISSUES
It refers to challenges or
problems that organizations face
in promoting their products or
services effectively to their
target audience.
1. CHANGING DEMOGRAPHICS
Characteristics:
a. Aging Population
b. Increase in the number of single-parent
households
c. Continuing growth in the number of people
traveling for personal rather than for
business purposes
d. Growth in the number of international
travelers
2. CHANGING VACATION
PATTERNS
From a traditional once-a-
year vacation of two weeks is
now a twice-a-year of 1 to 3
days mini vacation
3. MARKET SEGMENTATION
It refers to the practice of
dividing a broad market into
smaller, more manageable
segments based on shared
characteristics, needs, or
behaviors of potential
customers.
4. FREQUENT GUEST
PROGRAMS
A program intended for repeat
customers.
5. MATURATION IN
SEGMENTS OF THE
FAST-FOOD INDUSTRY
Maturation refers to the stage of
development that certain
segments within the fast-food
industry have reached.
 LEGAL ISSUES
It refers to issues such
as liquor liability and
ethics.
1. Liquor Liability
It refers to the legal responsibility
of individuals or businesses that
serve or sell alcoholic beverages
for any harm or damages caused
by intoxicated patrons.
Establishments are accountable
for:
a. Over-service
b. Sale to minors
c. Dram shop laws
d. Social host liability
2. Ethics in the T&H Industry
It is also known as Business
Ethics. It refers to the application
of a particular moral code to
relationships, activities, and
discussions made by individuals
in business or industry.
Factors Resulting To Ethical Issues
In The Tourism And Hospitality
Industry:
1. Profit Maximization
2. Lack of Regulation or Enforcement
3. Globalization and Mass Tourism
a. 4. Complex Supply Chains
b. 5. Consumer Demand
c. 6. Lack of Awareness or Education
Human Resource Issues
It refers challenges
related to managing and
supporting the
workforce.
Human Resource Issues
1. Sexual Harassment
2. Employee Turnover
3. Employee Assistance Plans
4. Employee Empowerment
1. Sexual Harassment
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:
1. Sexual Harassment
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
1. Sexual Harassment
3. It is unreasonably interferes with
the person’s work performance or
creates an intimidating, hostile, or
offensive work environment.
2. Employee Turnover
It refers to the act of replacing an
employee with a new employee.
Partings between organizations and
employees may consist of termination,
retirement, death, interagency
transfers, and resignations.
3. EMPLOYEE ASSISTANCE
PLANS
It is the is a voluntary, work-based
program that offers free and
confidential assessments, short-term
counseling, referrals, and follow-up
services to employees who have
personal and/or work-related problems.
5. Employee Empowerment
Allows an organization’s employees to
make independent decisions and to
feel empowered to take action as they
see fit. This is in contrast to
micromanagement, which does not
allow for independent decision making.
 Operations Issues
Issues that usually
happens in the working
area or in the place
where employees do
their job.
Operations Issues
Automation
Smoking or non-smoking areas
Sanitation and public health
Recycling solid waste