CURRENT TRENDS

AND ISSUES IN THE

TOURISM AND
HOSPITALITY
INDUSTRY
The Bright Future Of
Tourism And
Hospitality

In recent years a number of significant

social and economic changes have
occurred that suggest a bright future for
the tourism and hospitality industry.
These are;
1. Early Retirement
Early Retirement. At present, many workers retire at an earlier
age than the case in previous years. The US social security
system provides benefits to workers as young as 62 years of
age and many employee retirement programs are based on
years of service rather than on age. In some retirement
programs, specifically government programs. It is possible to
work 25 to 30 years and receive benefits at the age of 55 or
younger. The increasing number of people who retire early is
beneficial for the tourism and hospitality industry because
these people use their time to travel and see the world;
 2. Longer Life Span

The average individual can now expect to

live beyond the age of 70 and many will
live longer. This is in contrast to earlier
generations when the average life span
was much less. The increasing population
of older, retired citizens who are richer due
to pension programs and are healthier
provides a larger base of potential
customers for tourism and hospitality
operations.
3. Shorter Workweek
• In the past the sixty-day workweek was the standard for
most working people. At present the five –day workweek is
standard and the four-day workweek is becoming common-
leaving several days for other activities. The resulting
increase in leisure time, combined with faster and easier
transportation, makes possible for many individuals to take
weekend vacations and travel to a degree they could not
have made a few years ago. The tourism and hospitality
industry will surely benefit from this increase in travel;
4. Greater
Disposable Income
The average family has more money to
spend than before. This is due to higher
wages and two-earner household. A large
portion of the additional disposable income
is spent on consumer goods and services.
The tourism and hospitality operations
receive an important share of it;
5. Greater Mobility
Improved roads and better transportation make it
easier to travel every year. The modern highway
system has reduced the time required for
automobile travel between any two points. New
planes use new technologies which enable them to
carry more passengers while using less fuel. These
increase in travel have a positive impact on tourism
and hospitality industry sales; and
6. Smaller Families
The average family size has
decreased. Thus it is easier for the
family to travel and travelcost 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 the problems. Those pursuing career 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.
These issues can be categorized under the following headings;
1. Marketing
2. legal;
3. human resources
4. operations and;
5. consumer affairs;
Marketing Issues

The marketing issues are changing

demographics, changing vacation patterns,
market segmentation, frequent guest
programs, maturation in segments of the
fast-food industry, and consolidation.
Changing demographics
The population of developed countries is aging. The median is
now 33 years and is projected to increase in the coming years.
Another changing demographic characteristics is the increase
in the number of single-parent households. Single parent
households generally have lower levels of discretionary
income. A third demographic change is the continuing growth
in the number of people traveling for personal rather than for
business purposes. Approximately 74% of domestic travelers
travel primarily for a non business purpose. The fourth
demographic change is the growth in the number of
international travelers. One of the primary reasons is the
decreased cost of transportation relative to income, making
travel more affordable to everyone.
 Changing vacation
patterns

Citizens of industrialized countries are

changing their vacation patterns. The
traditional once a year vacation of two
weeks is declining popularity. For a growing
number of people, vacations are becoming
shorter and more frequent.
Market segmentation
Since 1980, the principal term in tourism
marketing has been marketing segmentation.
Until the late 1970’s, lodging establishments
attempted to appeal to broad general markets.
Their aim was to appeal to a broad group of
potential visitors. In recent years, the success of
the limited service properties has led to the
development of other properties intended to
appeal to selected market segments.
 Frequent guest
programs
Because of the proliferation of properties and
the increasing competition among them, some
lodging operators have begun to develop
programs to gain repeat business. Modeled on
the frequent flyer programs which were
successfully used by many airlines companies,
these plans give credits to regular guest. They
can be redeemed in the form of reduced rates
upgrades, free accommodations, free meals, or
any variety of amenities.
Maturation in Segment of the
Fast-Food Industry
Segments of the fast-food industry are no longer
expanding to the extent that was formerly
possible. The demand for hamburger is not
growing as fast as it once did. So operators find it
necessary to develop new products to maintain
the desire sales level. As public tastes continue to
change, food service operators will have to
develop specialty products to retain and adequate
Consolidation in the
Commercial Lodging Industry
Some experts are now predicting that the
number of large nationwide lodging
companies will decrease in the coming
years; that a small number of firms will
dominate the lodging industry by acquiring
smaller chains or regional or national
properties. The trend toward consolidation
will have a tremendous impact on all
commercial lodging operations.
Legal Issues
The legal issues are liquor liability and ethics in the tourism
and hospitality industry.

Liquor Liability
In the past there was a growing public concern over
the increasing number of alcohol-related automobile
accidents. At present, alcohol and the use of drugs is
a factor in more than a half of all automobile
accidents. This led the public to pressure state
legislatures to act.
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 ethic refers to the
application of a particular moral code to
relationship, 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.
Human Resource Issues
Some of the human resource issues are sexual harassment,
employee, turnover, employee assistance plans, and employee

Sexual harassment
empowerment.

Sexual harassment may be defined as unwelcome sexual

favors, and other verbal or physical conduct of sexual nature
that take place under any of the following condition
1. submission is made a condition of the
person employment
2. submission to or rejection of such
conduct is used as a basis for employment
discussion affecting the person
3. it unreasonable interferes with the
person’s work performance or creates an
intimidating hostile or offensive work
environment
Most cases of sexual harassment involve complaints by
female about co-workers or superior.

Because employment are liable for the actions of their

employees at work, it is very important for employee 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 manager and
employees so that all will understand and become sensitive to
the nature of sexual harassment
3. establish procedure for handling all complaints promptly,
fair and in a sensitive manner
EMPLOYEE TURNOVER
Employee turnover is one of the major issue
comforting manager of tourism and hospitality
enterprise with turnover rates averaging
approximately 100 percent per year, manager are
always face with the problems of losing experienced
employees and hiring less-experience employee as
replacement.
Many manager in tourism and hospitality industry
understand the requirement to reduce turnover.
These include adequate wages and benefits
reasonable working condition, reasonable working
schedule, and reasonable treatment of employee by
Employee assistance plans

Employee assistance plans (EAPs) are included is

the discussion of major issues in the tourism and
hospitality industry because they are one of the
secular steps to pay attention regarding the
problems of their employee. The tourism and
hospitality manager who establish EAPs to
benefits employees will eventually develop a
more loyal workforce, one that is willing to make
a great effort to attain the operation goals of the
enterprise. In addition the manager who helps the
employee will reduce employee turnover.
EMPLOYEE EMPOWERMENT
In some tourism and hospitality establishment, managers
have developed rules and procedure that employee are
directed to follow. Many owners and manger have realize the
effectiveness of setting strict rules governing very detail of
guest service. Thus, they now set policy that are guest
oriented. They empower their employee to make decision that
will improve the quality of service to guest without having
negative impact on operation.
OPERATION ISSUE
The operation issue include
automation,smoking/non smoking areas.
Sanitation and public health and recycling solid

Automation
waste.

Automation is the process of using electronic and

mechanical equipment and machinery to complete some of
all of the task associated with a given enterprise. The two
primary reason for automating an enterprise are
1. to increase the speed of work
2. to reduce the cost of work
Automation in the travel industry is here to stay. Computerize
will affect the industry principally in three areas, namely:
1. communication. Business travelers frequently change their
itineraries to suit their changing
requirement. Much time at present in lost in making alternative
arrangement through vendor or distributors from payphone,
hotels rooms, or secretaries’ phones. Portable communication
data units (PCUDs), a portable telephone or computer, allows a
business traveler to communicate with any travel entity from
any place including airplanes and rearrange or reconfirm his
travel plane.
2. interactive CRTs. Interactive television is now being used is
some cities within a few more years, more years, more cities will
be using it.
3 elimination of tickets. There is no longer a need for the
traveler to carry an actual document for an airplane seat or
a hotel revervation. A Traveler my place the order about
this impending trip on his interactive television, and insert
his travel card into the appropriate slot on the side of the
console.
One of the biggest problems of agents nowadays is how to
find the most efficient way to deliver the travelers
documents. At present some food service and lodging
establishment have automated to the extent that guests
and customer no longer have direct contact with any staff
member. It is interesting to note that food service and
lodging establishment have tended to maintain the
SMOKING/NONSMOKING
As more and more costumer of tourism and hospitality entities
demand smoke-free areas for dining and smoke free sleeping
accommodation , the industry will continue to exert efforts to
meet this demands. The prohibition of smoking in tourism and
hospitality enterprise is an issue that is of increasing
importance to owner and manager in the coming years
SANITATION AND
PUBLIC HEALTH
A very important issue in food service is sanitation.
Everybody agrees that all step should be taken to
prevent illnesses that are caused by the manner in
which food is handled or to the food [Link]
food handling has always been an issue in the
industry. Managers must always be sure that food is
bought from responsible [Link] and local
governments apply strict sanitary standards to food
and beverage operations.
RECYCLING SOLID WASTE
In many of these areas, separating recyclable
plastic, glass, and other items from other solid
waste greatly decreases the quantities that require
disposal. Many in the tourism and hospitality
industry who have not been previously affected by
this issue will eventually find it necessary to adopt
a recycling program.
CONSUMER AFFAIRS
ISSUE
The consumer affairs issues are fire, safety,
truth in menus, and diet/nutrition/health.

Fire Safety
Fire safety has always been an important issue in the
tourism and hospitality industry. In earlier centuries,
taverns, inns, and hotels which were usually constructed
of wood where regularly destroy by fire. Many where
burned to the ground and a large number of people were
killed or crippled.
 Truth in Menu
For food service operators, preparing truthful menu is an
ethical practice that should never be violated. However, a
small minority have produced menus that are not accurate
indicators of the food served in their establishments.

Diet/Nutrition/Health
. Successful food service operators will have to give greater
attention to the nutritional content of food in the years to
[Link] trend to healthier dining will surely continue.
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 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 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;
2. extended reach in less-developed countries;
3. improved security of personal information;
4. robotic labor sources;
5. reservation systems with more sophisticated, voice-
activated, intelligence;
6. improved navigational systems with more
rental cars;
7. electronic entertainment versus in rental cars
and on planes and cruise ships;
8. upgraded internet personal digital assistants
for operations;
9. marketing mass customization
10. comprehensive branding campaigns for large
and small operators;
11. virtual online customer communication;
12. just-in-time seats/rooms/car inventories;
13. electronic travel agents;
14. blended hybrid accommodations;
[Link] anti-terrorist microchip security systems;
[Link] nutritional fast-food offering;
[Link] on ecotourism; and
5. improved customer relationship marketing information.
THANK YOU