Unit 2 Contemporary Global Hospitality Industry


This section of the report will try to demonstrate the understanding of this writer on the topic of the changes which are instrumental in affecting the contemporary hospitality industry. The themes which will be looked into through this study are:

  • It analysis the issue which is relating to the operation, managerial and legislative issues through which the there is recent developments affecting the hospitality industry
  • A justification of predicted for the new future trends and also given for the developments in hospitality
  • Analysis the affect of predicted trends and developments

AC. 3.1 An analysis of operational, managerial and legislative issues resulting from recent developments affecting the hospitality industry

There are various operative, managerial and legislative issues resulting from recent developments which are being faced by the hospitality industry. The biggest operational challenges which are being faced by the companies involve the shortage of trained labour as well as constraint on the cost aspect. Both of these issues as well as their impacts can be identified in various geographically diverse industries which also leads to severe issues for the expansion of the hospitality industry as a result of the lack of human resources. A labour force which is shrinking is the most significant challenge in front of the international hospitality industry. Also for the reason that the industry is increasingly pressed to reduce costs with keeping very high quality standard for meeting guest expectations, the companies are being expected to do more with less. This is also a significant operational challenge (Grönroos, 2006).

As far as the managerial challenges are concerned,  the biggest challenge which is being faced by the companies in the current state of the industry is developing a profile of the customers which is very important for the successful implementation of the marketing sector and communication activities of the companies in this industry. This has been especially happening due to the diverse nature of the customers to whom the bigger hospitality companies are catering these days. In view of the fact that the hotels these days try to provide excellent and customized guest service the companies constantly strive to learn more regarding their guests through gathering and mining data. However this process poses significant challenge for the companies in view of the fact that the existing information systems which are used in these companies are not capable of recording such data as well as analysing them with the purpose of developing various trends and statistics regarding the customer trends (Edvardsson, 2008).

As far as the legislative issues are concerned, for the hospitality industry most of them are directed towards the preservation of the environmental factors which are affected through the daily operations of the hospitality industry. Since the luxury options and operations of the hospitality industry tend to take up a lot of resources including the water, electricity etc. Hence there are various legislations which have been implemented by the respective national governments for preserving these factors (Lusch, 2007). These are also creating a lot of challenges for the companies as they are expected to provide service to the consumers without compromising on their service levels. This is fairly difficult to provide through working under such constraints. So it is very difficult and very challenging for the recent development which affect the hospitality industry.

AC 4.1 A justification of predicted future trends and developments in hospitality

The future trends and developments which are expected for the hospitality industry is a steady growth. It is expected that during the near future the global hospitality sector will be growing further. One of the major reason for this can be the strong appetites of the investors and the convenience of creative as well as flexible capital sources for this industry which will be able to lead to a trend of hotel acquisitions which will in turn increase the demand for the same. Also the lodging markets which have been dormant so far are expected to gain traction in view of the fact that investor groups are finding increasing opportunities for gaining higher returns in these emerging sub markets as well as secondary locations. Also the use of the technology has been able to change the course of the industry and it is expected to grow even more through continuous evaluation of the hoteliers and customers on the return of the customer investment by taking living experience. Use of technology can be shown a as a very valued and valid point which can justify the kind of growth that has been predicted for the industry (Lusch, 2007).

AC 4.2 An impact analysis for the predicted trends and developments

The predicted trend and development for the industry says that the customer preference is changing with the advent of new set of consumers.   The teenagers are very interested in discovery, exchanging, and get new experience and they are willing to pay for these. These people try to find unique as well as novel experiences and this will command the changes for this industry. Technology will also positively impact the industry given that it will be able to streamline a lot of processes for the companies which is also used by the customers for seek for information. There are various updated customer which are interested in using the new technology which is done manually like check in at hotels, shopping, by paying at restaurant, other bar bills etc. The instant use of Twitter, Facebook, or TripAdvisor also have given them the option of expressing their opinions as well as complaints against the companies within no time. All of these will impact the future trends of this industry significantly (Edvardsson, 2008).

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Edvardsson, B. & Enquist, B. (2008). Values-based Service for Sustainable (Business Lessons from IKEA). Routledge, London
Grönroos, C. (2006). Adopting a Service Logic for Marketing. Marketing Theory, 6(3), 317-333.
Joe, T & Frank, M. H. (2013) “SERVICE INNOVATION Organizational Responses to Technological Opportunities & Market Imperatives”, Imperial College Press, London.
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LUSCH, R.F., VARGO, S.L. & MALTER, A.J. (2006). Marketing as Service-Exchange: Taking a Leadership Role in Global Marketing Management. Organizational Dynamics, 35 (3), 264-278.
Lusch, R.F., Vargo, S.L. & O’Brien, M. (2007). Competing through service: Insights from service-dominant logic. Journal of Retailing, 83 (1), 5-18.

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