Challenges in global hospitality industry

1. CHALLENGES IN GLOBAL HOSPITALITY INDUSTRY
By,
ASWIN HERBERT

2. INTRODUCTION
Findings of issues, challenges and trends that hospitality industry might
face in the year ahead respectively.
Challenges that facing hospitality include will include operating issues,
marketing issues, technological issues and economic issues.

3. 1. Shortage of skilled employees
One of the greatest challenges plaguingthe hospitality industryis the unavailabilityof quality
workforce in different skill levels. The hospitalityindustry has failedto retaingood professionals.
2. Retaining quality workforce
Retention ofthe workforce through training anddevelopment in the hotel industry is a problem and
attritionlevels are too high. One of the reasonsfor this is unattractivewage packages. Thoughthere
is boom in the service sector, most of the hotel management graduatesare joining other sectors like
retail and aviation.
3. Customer expectations
As India is emergingas a destinationon the global travel map, expectations of customers are rising.
The companieshave to focus on customer loyaltyand repeat purchases.
CHALLENGES

4. 4. Global Uncertainty
While the global hospitalityindustry continuesto recover following the effectsof the terrorist
attacksof September 11, 2001.Terrorattacksare the most direct example of global uncertainty;
however, there are other areas of concern such as geopolitical relations governmental travel
restrictions and currencyexchangerates.
5. Branding Issues
Acommoditization of the hotel product. Increasedcompetition between thebrands is leadingto
amenity creep, and diverging interests betweenowners and brands.
Instillingauthenticityof local culture intobrand standards remains a challenge.
6. Technology
The hospitalityindustry must do a better job of managing technologyand addressingthe
challengesposed by new and changingtechnology.Specifically, the industry must align
technology investment with business objectives, address aging and inadequate infrastructure and
learn to better utilize technology in marketing to guests, training employees, yield management,
and meeting customer requirements

5. 7. Human resource development: Some of the servicesrequiredin the tourism and hotel
industries are highly personalized,and no amount of automation cansubstitute for personal
service providers. India is focusing more on white collarjobs than blue collarjobs. The
shortage of blue collar employeeswill pose various threatsto the industry.
8.Manual back-end: Though most reputedchains have IT enabledsystems for property
management, reservations, etc., almost all the data which actually makethe company work are
filledin manual log books or are simply not tracked.
9. Cost Containment
Hospitalitiesare increasingly challenged to find ways to reduce costs without sacrificing the
qualitystandardsimposed to consistentlymeet guest expectations and to examine possibilities
for cost savings that will not affect the guest’s perceptionof value.

6. 10. Multicultural Issues
The newest trends and topicssurroundinghospitality researchand developmentis the management of
multiculturaltalent and the political landscape affecting the hospitalityindustry. With the development
of globalization, multiculturalissues are facing and disturbingthe industry operators.Bringing the far
corners of the world together. Blending amenitiesto cater for the needs of the world’s different
cultures is centralto successfor large, internationalhospitalitychains.
11. Increased Competition
Hotels everywhere indicate that their community is overbuilt The resulting competition, which often
involvesprice cuttingin efforts to provide greater value to guests, educes still further the profits
generated. Rooms are now sold not only for less but also bundledwith packages, like breakfast, airport
transfersor a day’s sightseeing. Competitioncalls for innovation in hospitality industry.
12. Interactive Reservation Systems
The number of reservationsmade via the Internet continues to increase. Surveys show that currently
20% of all reservationsare made through the Internet, and increasing every year.If a hospitality
cannot afford not being connected. The potential guestcannot book online, a reservationwill be made
at the competitor'sweb site.

7. CONCLUSION
Travelers are taking new interests in the country which leads to the
upgrading of the hospitality sector. Even an increase in business travel has
driven the hospitality sector to serve their guests better. Hospitality
Industry is closely linked with travel and tourism industries. 'Hotel
Industry in India' is set to grow at 15% a year. More than 50 international
budget hotel chains are moving into India. Therefore, with opportunities
galore the future 'Scenario of Indian Hotel Industry'.

8. REFERENCES
www.hospitalitynet.org/news/4025771.html
www.cscanada.net/index.php/mse/article/download/808/816
www.cbsmohali.org/img/chapter2.pdf