Topic 3 Global and forces affecting in the hospitality industry - Part 2

1. Globalandforcesaffectinginthehospitalityindustry
(PART2OF2)
DHT 1113 Introduction to Hospitality and Tourism Industry
Laura Law

2. OUTLINE
• Economic Climate
• Demographics and socioeconomic trends
• Psychological trends
• Technological trends
• Political Forces

3. PSYCHOLOGICAL MOTIVES
Global and forces affecting in the hospitality industry
DHT 1113 INTRODUCTION TO HOSPITALITY AND TOURISM
INDUSTRY
Internet and external
Environment Factor affect: Hospitality
Psychological Factor affect: Guests and Clients of the Hospitality Industry

4. BASIC AND SECONDARYHUMAN MOTIVES
• Psychographic Research: Research that attempt to classify
people’s internal motives and behavior
• Psychological motive classified as
- Basic Motives
Influence everyone include unlearned needs such as thirst,
hunger, fear and avoidance of pain
- Secondary Motives
Usually, vary from person to person.
Learned needs and include achievements, desire of power,
PSYCHOLOGICAL MOTIVES

5. BASIC AND SECONDARYHUMAN MOTIVES
Food Service
Basic Motive : Food
Secondary Motive : Fulfilled by celebrating special moments
Hospitality Industry
Basic Motives : Good Night Rest, Comfortable, Safe Rooms
Secondary Motive : Luxury Suite that symbolize
achievements or esteem
PSYCHOLOGICAL MOTIVES

6. PUSH/PULL THEORY
• Internal factor lead or “push” people to travel
• External Factor “pull” them to certain destinations
PSYCHOLOGICAL MOTIVES

7. PUSH/PULL THEORY – EXAMPLE FIFI
(KTP Student)
Semester Break
Long hours study for exam, quiz
and test
PUSH to get away from college
for rest and relax
PSYCHOLOGICAL MOTIVES
Heard from friends’
vacation plan for
semester break (travel to
Penang)
Seen travel ads at lift area
Destination images
PULL away from the college
As result of push and pull factor working together, Fifi
decides to spend semester break at Penang

8. MASLOW
HIERARCHYOF
NEEEDS
Five Levels of Human Needs
1) Physiological needs
Shelter, Clothes and Food
1) Safety Needs
Protection from physical threats
and harm
1) Social Needs
For belonging and association
with others
1) Esteem Needs
For fulfill ego and status
1) Self-Actualization Needs
Realizing maximum potential and
emotional well being
PSYCHOLOGICAL MOTIVES

9. PSYCHOCENTRIC/ALLOCENTRIC
TOURIST
PSYCHOCENTRIC
• Nonadventurous person
• Self-inhibited
• Prefer leaning new
things in a safer, more
predictable environment
• Want to experience new
things but in such a way
that they feel more
comfortable
ALLOCENTRIC
• Like to interact with people
from different culture
• Tourist enjoy varied
activities and gets a thrill (a
cause of sudden
excitement) from the
unexpected
• Motivation: Learning new
things and experience
exotic cultures and
customs
PSYCHOLOGICAL MOTIVES

10. TECHNOLOGICAL INOVATION
Global and forces affecting in the hospitality industry
DHT 1113 INTRODUCTION TO HOSPITALITY AND TOURISM
INDUSTRY
Technology :
-Most dramatic influence on the hospitality network and guest
-Enhanced production of service
-Enhanced guest comfort and safety
-Increased economic prosperity, leisure time and efficiency of transportation

11. TECHNOLOGICAL INOVATION
EFFECT OF THE INDUSTRIAL AGE
• Given worker more leisure
time
• Having more money to
spend and more time in
which to spend it are
contributed to increase
travel and lodging
• Improve method of service
• Cook Chill
- Institutional operations to increase
efficiency and maintain food quality
- Prevent growth of harmful bacteria
- Food can be stored for up to 45
days without freezing
• Cook Freeze
- Food items are prepared then
quickly frozen in a blast chiller
• Sous Vide
- Increasingly used in both dining
room and room service operations
for quicker preparation of various
meats and vegetables at the time
of order

12. TECHNOLOGICAL INOVATION
EFFECT OF THE COMPUTER AGE
• “Change”
• In Support of management
- Information System
Network
- Accessing Market
Information
- Staffing Schedules and
Payrolls
- Computerized Production
Management
• In Guest Service
- Automated check in and
check out
- Automated Car Rental
- Business and Entertainment
Amenities
- Nutritional Analysis

13. POLITICAL FORCES
Global and forces affecting in the hospitality industry
DHT 1113 INTRODUCTION TO HOSPITALITY AND TOURISM
INDUSTRY
Result from the actions or rulings of organized
governments and the actions – sometimes violent – of a
segment of society

14. EFFECT POLITICAL EVENTS
RECENT POLITICAL EVENT
• Political change continue
shape the development of
the hospitality industry
• Stability of government
• Restaurant or hotel owned
and operate by state
WAR, TURMOIL, AND TERRORISM
• Bombing – government
restrict population to travel
in order to protect them
• Cancel business trip to
avoid war or threat of
terrorism
POLITICAL FORCES

15. IS

16. GOVERNMENT REGULATIONS AND
HOSPITALITY
TAXES AND FEES
• Hospitality establishment
inspected and licensed by
local government
• Sales Tax/Value added Tax:
Charged by many coutries,
charged directly to
customer
• GST
• If tax too high, they
discourage travelers visiting
ENVIRONMENTAL REGULATIONS
AND HOSPITALITY
• Affect how and where
developers can build
• Emphasis on the
environment and energy
conservation will
increasingly affect
construction and operation
of hospitality business
POLITICAL FORCES

17. GOVERNMENT REGULATIONS AND
HOSPITALITY
HUMAN RESOURCES LEGISLATION
AND HOSPITALITY
• These law prohibit
workplace discrimination
based on any of these
factor and the prohibit
discrimination in access to
hospitality services
• Labor Law
IMMIGRATION
• Can strain slow economics
• Limited number of unskilled
workers allowed to enter
• Enter these countries
illegally every year
POLITICAL FORCES

18. UNIONS
• Fight for the right for employee
• Labour unions and workers associations
• Establish worker wages, benefits and hours