Contemporary issues

1. Contemporary Issues in the
Tourism and Hospitality Industry
Level 5 Diploma in Hospitality Management

2. Assess the reliability and validity of media information
Session Covers
Importance
Globalization
Reservation Conditions
Customer Service
Political / Economical Variables
Climate Change
Franchise
to Hospitality Industry

3. Globalization
• Process of interaction and combination among people, companies, and
governments worldwide.
• International combination arise from the exchange of world views ,
products , ideas and other aspects of culture
• Tendency of invest funds and businesses to move beyond domestic to
other markets around the globe in order to increase the inter-
connectedness of different markets.
• Helps to increase employment opportunities and advancement of
technology.

4. Importance of Globalization in Hospitality Industry
Educating employees around the world
able to learn about the different cultures, people, religions and other different prospects of life
Multilingual Services
hire people who know different languages so that their customers feel comfortable and safe
More knowledge about different cultures
Increasing knowledge on different variety of foods
Increase in trade agreement
trade agreements between two countries as it is good for the economy of both countries
Increase in equality among people and languages – reduce cultural barriers

5. Reservations / Booking Conditions

6. Loyalty Programes
Financial rewards for customers to encourage loyal buying behavior with the purpose of
making the customers’ brand loyal
Aims are
increase sales revenue through increased purchases
build bond between the brand and existing customers
Establish high level of customer retention by providing satisfaction and value to customers.
Frequency programe
provide rewards for customers who purchase frequently – build long term loyalty
Club memberships
anyone who purchase services or products

7. Benefits of Loyalty Programes

8. Benefits of Loyalty Programes

9. Customer Service
Methods to improve Customer Service

10. Benefits of Customer Service
Positive word of mouth
Customers recommend high service to friends
Business – positive image
Creates competitive edge
the fact that a company has an advantage over its competitors
Job satisfaction

11. Political Considerations

13. Political Variables Economics Variables
Government regulations Level of disposable income
Changes in tax laws Interest rate
Environmental protection law Inflation rate
Quality control standards Unemployment trends
Currency and labour markets Stock market trends
Legislation on equal employement Government budget
Tax rates

14. Climate change
continents
countries
cities

16. Advantages of
Franchise
Disadvantages of
Franchise