Challenges in Tourism and Hospitality Industry
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Introduction to Current Issues in Hospitality Management
In the present scenario it has been observed that hospitality industry has been growing at fast pace in the world due to huge number of tourists making their visits by crossing their national boundaries and moving all across the world. The basic reason for travel comprises of spending time for leisure along with activities such as business and adventure. By means of growth and development of this particular industry, it has made great contribution towards enhancement of economy of nation and at the same time raised standard of living of people up to great extent (Carlsen and Andersson, 2011). But on the flip side, it has been found that along with development of this sector, there exits range of current issues which are being faced by tourism industry.
Shortage of labor, high employee turnover rate, technological issues are some of most significant issues which are prevailing at market place (Bernick and Boo, 2013). In addition to this, huge amount of impact has been laid by other issues such as cost containment, increased competition, travel permit restrictions etc. This holds a crucial place and became matter of great concern for functioning of entire hospitality and tourism industry. Among all such problems, magnetize skilled and qualified staff along with retention is quite challenging for tourism sector (Nagle, 2009). In this present study, focus will be laid on current issues which are prevailing in this specific industry. The statement will be followed by review of case study for the same. The statement will be followed by evaluation of current PEST issues along with significance of cultural, environmental and political processes in terms of hospitality and tourism sector.
Hospitality and tourism industry
Due to range of alterations as well as development which has been taking place in hospitality sector, its level of complexity and other sources are growing at very fast pace. In similar manner, due to advancements in this field it also provides assistance in expansion and progression in tourism industry as well. In view of the fact that tourism and hospitality are regarded as same thing however these both are separate from each other. It has been observed that without one, another one is incomplete and not able to function properly. Hospitality industry comprises of provision of services which are connected with potential clientele in terms of accommodation, food, recreational activities and so on (Gjerald and Oggard, 2010). As per the view of many researchers, it can be stated that hospitality is all about hotel welcoming their guests and providing them various types of services such as rooms, restaurants for food and beverage, leisure etc. But on the contrary, tourism activities are concerned with activities which are undertaken by tourists in which they travel to various destinations in order to spend their spare time. It involves assembly of businesses that comprises of travel vendors such as rail, auto, rail, air and so on that plays a crucial role in promoting travel and vacations (Holden, 2008).
According to study conducted, it has been found that both these sectors are highly interconnected with one another. This is due to the fact that services of tourism industry are being supplied by hospitality industry irrespective of home country or in some foreign nation. In the similar manner, provisions of accommodation along with food and drinks are considered as one of the most important part of entire course of action. In addition to this, level of complexities of both these sectors is also associated with each other (Ritchie, Tung and Ritchie, 2011). This is because of reason that conditions which are prevailing in hospitality sector are quite high as employees need to work for long working hours and in hectic schedules for the purpose of delivering quality services to visitors and their guests (Hall, 2008).
Moreover, they have to also comply with various forms of rules and regulations associated with it (Current issues in the hospitality industry, 2014). This is concerned with ensuring safety and security to their guests along with maintaining quality of their service deliverability. In addition to this, there exists range of businesses attached with it such as events, destination marketing, convention and exhibition sector etc. But on the other hand, there are very few hotels that comply with policies and procedures framed by government due to its high degree of complexity (Stockdale and Kuhne, 2007).
As per Bouchier 2012, there are number of implications which are related to environment of both these industries i.e., hospitality and tourism. These industries carry out its functioning in both internal as well as external environment (Bouchierm, 2012). External one is concerned with technological aspects that are occurring in economy. In recent times, various type of advancements are being undertaken in terms of online registration, feedbacks of service users, and for the purpose of getting reviews of various organizations in order to enhance awareness of clientele. Economic condition is yet another external context which is taking place as per nature of industry and nation. In regard to this, internal factor is comprises of need of skilled and qualified professionals so as to deliver world class services to potential clientele (Harrison, Jayawardena and Clayton, 2003).
According to research conducted, it has been seen that tourism and hospitality industry also comprises of both public and private relationship. These are some type of cooperative alliances which are taking place between both sectors in long run. These are gaining huge amount of popularity these days as ruling body are realizing importance of agreements with private that it can provide them various forms of tangible as well as immediate benefits which can provide efficient services to consumers. In addition to this, such type of partnerships holds a quite significant position in this sector (Conrady and Buck, 2011). In order to attain competitive advantage, organizations are developing synergies. With the help of cross cultural partnerships sharing of risks reduces up to certain extent along with costs by reinforcing of financial as well as human resources. This proves advantageous in attaining considerable amount of efficacy and better quality services to customers. This proves to be of great use for tourism and hospitality sector as it helps in generation of stronger vision of goals and leadership with that great sense of responsibility. Likewise, it expands overall scope of available opportunities for small scale business enterprise for the purpose of reaching to global market. It also lends great help in attaining certain quality standards in that of destination competitiveness (Fyall and Morgan, 2009).
Current PEST issues of tourism and hospitality industries
Some of the current PEST issues of tourism and hospitality sector are enumerated as under:
Political: This political component comprises of policies and regulations which has been framed by government that is imposed on industries. High level of tax rates, VAT as well as other related regulations are major issues which are prevailing currently in both sectors. These have laid negative impact on overall functioning of industries in long run. The major problem which is related is as per view of government these sectors are easy target for taxation. As a result to which air passenger of UK are highest tax payers in recent times (Ottenbacher and Harrington, 2009). Tourists that are travelling from abroad and foreign countries face huge difficulty due to this. Political instability is yet another trouble which has been creating problem; this is because of reason that changes in government bring alterations in regulations that are responsible for creating trouble in operation of such sectors. However, this aspect is necessary for maintaining coordination and level of competition in nations (Clarke and Chen, 2012).
Economic: Foreign exchange rate is major economic concern which is quite high in developed nation because of their high value of currency as compared to developing countries. In addition to this, due to high inflation rate has also caused reduced amount of purchasing as well as spending capacity of individuals which has raised concern in tourism and hospitality industry (Pesonen and Antti, 2013).
Social: Social issues which are prevailing in current times is that tourists especially international has different backgrounds, cultures as well as traditions which they comply with. Due to this, it becomes quire necessary to provide adequate training to staff members so that they can easily deal with guests from varying background with utmost effectiveness and efficiency without posing any difficulty (Bernick and Boo, 2013).
Technology: As per views of many researchers, due to advancements in technology visitors can carry out virtual visit of hotel or tourist destination which they desire to visit along with review of its features. In the similar manner, customers can make best possible use of facilities such as online booking and payment. This has proved beneficial in generating adequate amount of awareness among them, as a result to which it becomes evident for industries to undertake serious efforts for the purpose of providing quality services. But on the contrary, it has increased high competition level as well as increased safety and security concern. In addition to this it has raised complexities in action up to great extent (Cardoso and Ferreira, 2000).
Significance of political and cultural processes
As per the study it has been observed that political course of action such as efforts from the side of ruling body has laid important influence on overall growth and development of tourism sector. This is due to the fact that help and support from government is very much needed for the purpose of expansion and promotion of this particular sector (Brotherton, 2012). In the similar manner, regulations as well as policies which are being devised by higher level authorities’ errand industries in adequate and appropriate manner. Political processes in the form of stable and organized government provides assistance to industry in becoming conscious regarding their set of responsibilities as well as to deliver world class services to visitors by complying with set of rules and regulations (Fyall and Morgan, 2009).
But on the flip side, it is to be critically evaluated that it is mandatory for organizations in tourism and hospitality sector to abide by every single norm to gain desired outcomes. In the similar manner, both the sectors are also highly affected by cultural course of action of nation. This is because of reason that with the help of culture of tourist’s destination, positive impact can be laid on international tourists as through this they can get entirely different experience out of this (Riege and Perry, 2000). Culture of each and every place is quite unique and distinct from one another which plays a crucial role in drawing attention of large number of visitors at single point of time. It is quite essential to take necessary steps in order to safeguard natural as well as cultural heritage so that it can easily attract tourists and at the same point of time can generate ample employment opportunities for residents. As a result to which significant effect can be observed in entire travel and tourism sector. For this, it is required to safeguard culture of native for longer duration of time period (Carlsen and Andersson, 2011).
The case study which has been adopted for carrying out this present report is entirely based on one of the most issues from which hospitality and tourist industry is facing is high rate of employee attrition. For this case study of Hotel Grange, UK is taken. It is a luxury five star hotel which comprises of number of branches located at renowned places such as Grange Holborn Hotel, Grange St. Paul’s Hotel and so on. As per survey conducted it has been revealed that majority of its existing workforce is highly satisfied with all the efforts undertaken by business enterprise along with their working conditions (GRANGE HOTELS, 2014). But on the contrary, most of them are not satisfied as a result to which there exists good amount of chances for further improvements (Gorman, 2007).
The prevalent issue of high attrition rate in hospitality and tourism sector is quite relevant to present case study, as organization which has been selected here belongs to hospitality sector. In addition to this, this will lay emphasis on satisfaction level of its staff members which is directly connected with their turnover. In view of the fact that in case if employees are not satisfied with their working conditions in terms of hectic and tiring work schedules, long working hours along with their relationship with various managerial levels, than they will leave their job (Ritchie, Tung and Ritchie, 2011). In such type of conditions it becomes quite complicated for hotels to draw attention of new workforce and to retain them for longer period of time. The selection of this case study is highly justified as by means of high attrition rate of employees is also accountable for causing shortage of skilled and talented workforce. Due to this, it becomes quite significant for hotels to know existing level of satisfaction of their staff members. In case if they are not satisfied up to certain level then this case study will also provide assistance in identifying number of measures which can be adopted by business enterprise in order to retain existing base of employees (Gjerald and Oggard, 2010).
It has been observed that the Grange Hotel UK is making every possible effort on maintaining adequate satisfaction level by delivering them appropriate working conditions as well as establishing cordial relations with them in long run. The selection of entire case study is also being connected with benefits in terms of economic and social. In regard to this, numerous recommendations can be suggested so that favorable steps can be taken by organization for holding their workforce in set framework of time (Conrady and Buck, 2011). With the help of this, huge amount of cost will be saved for recruiting and hiring new staff which are not effectual for hotel. In the similar manner, cost as well as time will also be saved on providing training and development of newly appointed workforce. In view of the fact that this case study has also social benefits related to it. As retention of employees will provide assistance in their development and at same time enhance their living standard alum with lifestyle (Clarke and Chen, 2012).
Discussion Main Text Analysis
On the basis of literature review and case study it can be stated that tourism and hospitality sector has been developing speedily because of generation of ample opportunities within industry. Due to closer interconnection between both the sectors, it can be rightly articulated that these are quite complex in nature too. This is because of their high level of dependency as well as amalgamating nature. In addition to this, tourism also provides provisions of range of services which are being related to travel as a result to which it needs amenities such as accommodation and lodgings which are being provided by hotels (Harrison, Jayawardena and Clayton, 2003). In recent times, due to its advancements this sector has became one of the biggest contributors in enhancement in current economy of a country. By means of this various types of up gradation has been seen in local communities and standard of living has been raised in society up to a great extent. This growth and development also proves to be of great use in generation of employment opportunities for residents which will directly influence economy prevailing in nation (Pesonen and Antti, 2013).
It can be analyzed that working of industries are highly influenced by various types of environmental implications in terms of internal as well as external contexts in which hospitality and tourism sector is carrying out their functioning. External environment comprises of economic as well as political conditions in which any business enterprise can look after their operations (Stockdale and Kuhne, 2007). Some of the factors which can laid high amount of legal restrictions are taxes on travelers along with decree which is being imposed by local as well as state government as a result to which restrictions has been forced on this specific sector. Economic issues are yet another context in which entire course of action is being carried out by hospitality industry. It comprises of exchange rates and financial positions which has been reigning in country. The purchasing power of individuals has largely been affected by economic downturn and economic crisis. This has decreased the amount of visitors that have been travelling abroad for spending some leisure time (Ottenbacher and Harrington, 2009).
Another aspect is concerned with technology which is being increasing at high speed. Issue has been created for tourism and hospitality industry due to considerable amount of awareness among potential clientele. It has been revealed that it becomes quite essential for trade in industry to undertake new and improvised technology in order to provide maximum amount of ease and comfort in their dealings to their service users (Briscoe and Wilson, 2003). It is evident for hotels to involve amenities such as online reservation system, payments along with free Wi-Fi in premises. This will prove advantageous in drawing attention of large number of guests and maintaining their loyalty as well. In regard to this, internal environment is another context in which tourism and hospitality sector operates smoothly. It has been observed that in present scenario long working hours are required in this industry along with working on holidays. This is highly responsible for creating the problem of high attrition rate and employee turnover rate in this specific field (Gorman, 2007).
This entire trade is facing lot of difficulties as well as issue of limitedness in terms of human resource and qualified workforce. Due to this, it has become quite challenging to attract new and novel workforce and their retention. Demography, low satisfaction level, unfair wage rate and so on are some of challenges which are being faced by hospitality sector. In the similar manner, it incur huge amount of cost in carrying out entire course of recruitment and selection for hiring new candidates (Fyall and Morgan, 2009). Along with this, extra amount is imposed on activities such as training and development of new and unskilled workforce. It has been observed that the problem of employee satisfaction is directly and indirectly linked with job satisfaction which takes place due to working conditions as well as feasibility of work (Alexander, 2007). Because of all such factors, performance level of existing workforce is negatively affected which influence profitability and productivity ratio of business enterprise in long run. In recent times, issues associated with job dissatisfaction and staff turnover has become one of the major concerns for tourism and hospitality sector. This is because of fact that it has not only increase overall cost but at the same point of time laid negative impact on deliverability of services to end users. Less visits of tourists from international market place has been seen due to poor service quality which has influenced their overall brand image as well as reputation (Desbiolles, 2006).
Far above the ground level of dissatisfaction is one of the most prominent reasons behind high attrition rate among employees. In view of the fact that for effective functioning of this particular field it is required on part of staff members to work in challenging working conditions, as a result to which dissatisfaction can be observed among employees and creates problem of motivation. Necessity of meeting quality standards and benchmarking set in this industry has made the condition even worst (Emerging Trends in Tourism Industry in UK, 2012). Majority of visitors from global market place expects staff of hotel to satisfy their expectation and at the same time meet their demands and expectations within stipulated period of time. It is a well known fact that tourists belongs to varied cultural backgrounds, so it became quite complicated for workforce to meet their desires and due to which they work under great pressure. Some of the major factors which has created large amount of deviation from this particular industry are lack of flexible working schedules, long working hours along with greater amount of stress (Gjerald and Oggard, 2010).
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Moreover, lack of adequate motivation from the side of employers also creates feeling of dissatisfaction among employees. It is quite evident that working conditions in tourism and hospitality sector requires appropriate motivational level which can inspire them to perform extremely well against all odds. For this, they can be provided with rewards in terms of monetary and non monetary (Wong, 2004). Lack of rewards can make the situation even worst and lower the amount of employee retention within place of work. In view of fact that adequate and cordial working environment, friendly atmosphere as well as effectual relationship with peers and top managerial levels can prove to be of great use in holding existing workforce for longer period of time. Likewise, this also provides ample opportunities for workers which can be used for their further growth and development (Inskipp, 2008).
By summing up entire study it can be articulated that, ion present situation tourism and hospitality sector has witnessed immense growth but, still there are several issues which need to be solved at initial level for its smooth progress. The problem related to human resource was limited to few sectors, but now it is visible in this industry as well. High rate of attrition among employees has become one of the most challenging issues as it turns out to be quite complicated to retain skilled and qualified workforce in long run. From the entire report, it has been observed that organizations which belong to hospitality sector in UK has been going through troubles in terms of turnover and dissatisfaction among labor. Great efforts has been undertaken by hotels for the purpose of holding their staff members, but still there are some rooms left for carrying out some measures in order to attain desired outcomes in stipulated framework of time (Wong, 2004).
Organization which has been taken in case study i.e., Grange Hotel UK, has adopted variety of measures for eradicating problem of employee attrition rate. But, still lot of recommendations can be made for carrying out entire course of action with utmost effectiveness and efficiency. First and foremost it is required on the part of hotel to provide monetary and non monetary rewards for motivating existing workforce so that they can perform exceptionally well. Various incentives programs can also be introduced which proves to be of great use in increasing job satisfaction up to great extent (Ritchie, Tung and Ritchie, 2011). In the similar manner, sincere efforts need to be made on part of employees so that they can attain organizational aims and objectives along with making exploring their career goals and path at same point of time. In regard to this, in order to keep hold of them for considerable period of time it is necessary to provide them various opportunities which can provide them added advantage. In view if the fact that hotel need to construct proper system for delegation of authorities and empowerment so that they can become competent enough to take decisions by themselves (Carlsen and Andersson, 2011).
Such kind of involvement in decision making process will motivate them and they will feel integral part of business enterprise. It is significant on the part of management of Grange hotel to take timely suggestions, reviews as well as feedbacks for the purpose to know about discrepancies which are prevailing in services and accordingly corrective measures can be adopted for the same (Bernick and Boo, 2013). In addition to this, by means of providing immense level of flexibility such as open communication will also proves beneficial in retaining workforce and generating expected outcomes. This is due to the fact that with the help of this they will free to discuss any issue or problem with management and subordinates. As a result to which they will feel satisfied and removes discontentment from their mind up to a great extent (Harrison, Jayawardena and Clayton, 2003).
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- Bouchier, D., 2012. Cultural Heritage and the Challenge of Sustainability. Left Coast Press.
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