Hotel and Tourism management

1. GLOBALIZATION AND
THE FUTURE OF
HOSPITALITY
CHAPTER 6

2. OVERVIEW
 The future of the hospitality
industry will reflect the changing
face of the population such as:
- Growing older
- Becoming more Culturally diverse.
• Many outside forces can affect
the future of hospitality industry
- Economic recession,
- War
- Terrorism
- Rising oil prices
- Political forces
- Economic Expansion in Asia

3. • The Tourism industry is impacted quickly by changes of the global
economy.
• Spending on travel & leisure activities (discretionary spending) is
often the first item to be cut from tight budget.
• Business travel also declines when money is scarce.
 Business Cycles
 Business cycles have 4 phases
i. Expansion – growth, economic activity increases.
- rising gross domestic product (GDP),
- higher levels of employment & job creation,
- brisk sales of goods & services
- Funds for new sites or renovations are readily available
ECONOMIC
CLIMATE

4. ii. Peak
- following expansion is peak
- developer or investor expect return on investment (ROI).
- ROI is a performance measure to evaluate the efficiency of an
investment
- Investment returns vary during growth and retraction periods.
iii. Contraction
- decline in an economy starts the contraction or recession phase
- falling GDP, higher unemployment, fewer new jobs, sluggish sales of
goods & services
iv. Trough
- the optimal time for an entrepreneur to buy & develop a hotel is at
the trough because values maybe lower for the real estate
- May require significant cash flow reserves to sustain until economic
recovery occurs

5. 7.1 Demographics & Socioeconomic Trends
 Demographics is statistical study of characteristics of human
populations used to identify markets.
• Characteristics include
- size & growth of population, distribution, education
background, size of family, family income, ethnic background,
age & gender
 Socioeconomic – relates to the study of human social behavior
or lifestyles.
 Economic is the study of production, consumption, and
distribution of goods & services

6. 6.2 Technological Innovations
 Technology has one of the most dramatic influences on the
hospitality network and its guest.
 The use of technology has enhanced the production of services
– making tasks faster and easier to perform. (Computerized
property management systems, restaurant point –of-sale
systems)
 Technology has also enhanced guest comfort & safety through
inventions (high speed & wireless Internet connectivity, Plasma
TV, automated sensor lighting, express check-in, check-out)
 Technology has facilitated people’s ability to travel by increasing
economic prosperity, leisure time & efficiency of transportation
systems.

7. Attracting a Changing Workforce
• Hospitality is a booming industry offering many
potential career opportunities for trained
professionals
- Graduates from hotel schools hold position within the hotel & restaurant industry
- Older workers who have worked up to their current position (rank & file)

8. • In fact, the older workers bring a positive impact to
the job. Reasons:
- They have fewer absenteeism than younger workers
- They are less likely to leave their jobs
- They are more satisfied with their jobs
- They have fewer on-the-job injuries
- They experiences less job-related stress
- They are less likely to need counseling or to use drugs
• Older workers have many
experiences and the know how to
handle the jobs given & are more
responsible towards their job

9. • Act which encourage employer to hire
employees with disabilities( OKU )
• With the limited number of young people
entering the workforce , the hospitality
industry accept these people as a work force
such as McDonald’s , KFC
Workers with special needs

10. • Learn how to recognize the work competencies of
those physically & mentally challenged
• Hire professional specially trained to work with
them.
• Redesign jobs for employees with progressive
disabilities
• Develop awareness programs to educate employees
Dealing with Special Employee

11. Minorities
 Malaysian have many
types of ethnic &
aborigines
 Aborigines is a minority
ethnic (senoi)
 There are challenges in
industry to employ
minorities & ensure there
work in every level of
operational
Women
 Normally women and
aborigines always become
a victim for discrimination
by employers. It changed
after many women
become educated
 To attract women worker
the employers must
provide flexibility & be
creative
 Encourage flexible work
time

12. Technology &
innovation in the
FOODSERVICE
Industry

13. • Technology is a term with many contemporary
meanings that has come to be associated with
the use of computer systems in business
operation.
• There are some differences in the application of
technology for 2 different sectors which are
manufacturing industries & Foodservice sectors
• In manufacturing industries, technology refers
to the process by which inputs transformed into
outputs.
• In foodservice sectors uses technology to
transform raw food into the final products/
meals enjoyed by guests.

14. Refer to the food
production process
HOW IT IS…
STORED? PREPARED? SERVED?

15. Innovation comes in the form of new or improved
foodservice equipment designed to:
- improve operating efficiency,
- conserve energy,
- sustain production over time,
- new kitchen design that makes
preparation process more efficient & effective.

16. Recent Developments include:
BLAST CHILLER
INDUCTION HEATING
SYSYTEM
For sautéing food,
replacing gas-fired
burner or traditional
electric elements
- Reduce product temperature
prior to storage thus preventing
growth of bacteria

17. FRONT OF
THE HOUSE
DELIVERING
THE MENU
ITEMS
RESERVATIONS
SEATING ,
PRESENTING
MENUS &
TAKING
ORDERS
SERVING
FOOD
COLLECTING
PAYMENT

18. COMPUTERIZED ORDER TAKING SYSTEM
POINT-OF-SALE TERMINALS (POS)

19. • Technological innovations in the manager’s office
are driven by developments in computer hardware
& software
• In cash-based operations such as restaurant,
management system integrated with point-of-sale
terminals & perform the following functions:-
– Tracking sales by menu item & menu mix
– Estimating production requirements on the basis of
sales histories
– Calculating inventory replenishment needs
– Transmitting sales information to corporate offices
– Calculating food costs

20. • Some large noncommercial foodservice operations
now use complex production systems that are
capable of:
– estimating food costs before products are purchased
(pre-costing)
– Controlling inventory by interfacing with bar code
readers
– Forecasting purchasing needs and transmitting orders
directly to vendors
– Generating daily recipes sized precisely to forecasted
needs
– Preparing nutritional analyses for recipes and checking
for possible allergens
– Scheduling labor
– Preparing real-time revenue forecasts
– Financial modeling

23. TECHNOLOGY
&
INNOVATION
IN
TOURISM

24. • Revenue Management and On-line Distribution
– Internet has created purchase on line possible. The on-
line travel distribution of today is made up of
consumers, travel agencies, global distribution systems
and airline
• Video Conferencing and Business Travel
– High-quality visual interaction(one-to-one
videoconferences can be economical, convenient and
time- saving).
• Security Systems
– A biometric system to recognize personal characteristics
of a guest, eventually can replace electronic key cards.

25. Trends
• The future of hospitality industry is dependent on
many factors:
 Advances in technology
 Changing lifestyles
 Consumer demand
 Economic changes
• Career opportunities are abound in these specialized
components.
• Service-oriented, all-in-one social and recreational
opportunities (mini theme parks, mega-resorts) with
mixed-use of hotel, retail, recreation and
entertainment complexes will be a growing part of the
recreation and social component of hospitality.

26. Trends in foodservice
• Historically, the primary engine of growth for foodservice has been
to increase market penetration by adding new restaurants.
• Since foodservice is highly dependent on global development for
growth opportunities, its prospects are linked to economic trends.
Quick service restaurants
•Quick-service restaurants are encountering an increasingly saturated
market, thus limiting growth.
•New quick-service concepts will have to gain market share at the
expense of established firms that have competitive resources. This is
due to the:
Increasing real estate prices particularly desirable restaurant
sites.
 New competitors entering the market– grocery stores
 Outside management companies are bringing in well known
restaurants like TGI Friday’s, Starbucks into hotels.

27. Trends in Lodging
• The supply of rooms and the demand for
them are rarely in perfect balance.
• The 9/11 attack halted the wave of hotel
development.
• Today, the lodging industry has enjoyed a
strong demand curve, which is reflected in
average rates (price per room per night) than
in occupancy levels (number of rooms
occupied per night).

28. 6.3 Environmental Regulations and Hospitality
• The growing concern for the environment affect how and where
developers can build, and must satisfy the wishes of many
organizations.
• This is due to the fact that the properties they operate may degrade
the ecological or cultural environment their facilities were built.
• In some parts of the world (China, Japan, Latin America, Eastern
Europe), pressure to industrialize rapidly allowed environmental
concerns to be ignored for too long.
- Now these countries are beginning to regulate environmental
impact more closely and emphasize on environment and energy
conservation.
• Restaurants are now reducing water consumption, participates in
recycling programs and embracing sustainable energy (solar
heating, usage of carbon emission reduction equipment).

29. Ecotourism and Green Marketing
• Ecotourism is defined as:
 Travel experiences that focus on nature-
related destinations and are designed to
have a minimal impact on the environment.
 Ecotourism Society defines ‘ecotourism “ as
“responsible travel to natural areas that
conserves the environment and improves
the welfare of local people.
• Examples of ecotourism experiences:
 Trips to parks and forest reserves
 Canoeing
 Trail-building
• It has the potential to become an important
segment of the tourism industry in the future.
• Ecotourism focuses on protecting the
environment and improving the lives of local
residents.

30. International development
• In the past, U.S. companies dominated the hotel
industry. Today, hotel companies are multicultural
and global.
• Regional trade agreements will continue to
encourage growth that span the borders of North
and South America, Europe and Southeast Asia
• Hilton Hotels plans to expand in Canada and
Mexico.
• Hilton International (a separate company) opened
10 new properties in the Middle East, and planned
to open another 50 around the world.
• Marriot has been developing full-service hotels in
major cities worldwide, and is taking its Executive
Suites and Courtyard concepts international.

31. • Hyatt International manages over 70 hotels
and resorts worldwide, and has an additional
30 properties under development.
• Westin has over 100 properties worldwide
and will open 15 more in Asia.
• Four Seasons is developing hotels in China.
• Globalization of hotel firms is also being
driven by consolidation and the brand
conversion that follows.
Marriot is converting Renaissance hotels to
its own brand

32. Growth of the Industry
• The hospitality industry as a
whole is one of the world’s
largest industries and is
expected to grow even larger.
• The industry will be important
in generating and sustaining
economic growth, particularly
in relatively less developed
countries.

33. Ethics in Hospitality
• Ethical problems arise daily for hospitality managers
and workers:
 Sexual harassment
 Unfair working conditions
 Racism, sexism, discrimination in the workplace
 Biased treatment between customers (regulars vs.
new customers)
 Offering and accepting bribes
 Concealing tips or other incomes from the IRS
(Internal Revenue Service)
 Allowing unsafe or unsanitary conditions
 Advertising false claims
 Raiding a competitor’s staff

34. • Dealing with problems in an ethical manner
involves creating guidelines for an ethical
workplace and helping staff make ethical
decisions.

35. Guidelines for an Ethical Workplace
• Managers and top
executives need to model
expected behaviour and
be committed to both the
company and its
employees.
• A written code of ethics
that clarifies expectations
of behaviour should be
available.
• Managers need to oversee
employee adherence with
company policy.
• All personnel need to know
they have a stake in their
company. Being held
responsible for certain levels
of business as well as feeling a
commitment to a
corporation’s values
strengthens the employees’
sense of involvement in their
company.