From "Hospitality: An Introduction," 14th ed.

by Brymer and Johanson

3
www.kendallhunt.com/brymer

CHAPTER

LEARNING OBJECTIVES
• Identify current trends that are influencing the
hospitality industry.
• Examine future challenges that hospitality
professionals may encounter.
• Comprehend the changing role of technology
Current Trends
within the industry.
• Examine the prominent role of social media
and Future Issues
and its impacts.
• Explore the importance of sustainability and Brad L. Engeldinger, Sierra College
green hospitality.
• Recognize ethical challenges and moral
decision-making practices.

CHAPTER OUTLINE
2011: A Year of Transformation
Technology and Social Networking
E-Hospitality
Social Networking
Ad Targeting
Text Message Marketing
Shared Technological Services
Sustainability and Green Hospitality
Ethics in Hospitality
Summary

KEY TERMS
Ad targeting
Consumer Behavior
E-Commerce
E-Hospitality
Globalization
Green Hospitality
Segmentation
Shared Technological Services
Social Media
Social Networking
Sustainability

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Copyright 2011 Kendall Hunt Publishing Company

22 P A R T O N E Hospitality Industry
2011: A Year of Transformation
The hospitality industry must transform itself
to keep up with demands set on the relationship
between guest and services, which are becom-
ing more complex with customer knowledge and
increasing expectations, causing preferences to
change. Changes in the past decade are creating a
new environment in which hospitality services need
to do more with less to secure growth and competi-
tive differentiation in today’s economy to ultimately
meet the challenges of the next decade. The mod-
ern customer has become more dynamic than ever
by developing expectations built around personal
needs refined from performing significant amounts
of research prior to travel. Further, globalization is
creating growth markets, influencing the hospital-
ity map, and is a recent development that will need
to be capitalized on. Professionals must be able to
effectively adapt to these changes by closely moni-
toring consumer behavior to maintain effectiveness
in guest services as new segments of customers from
differing parts of the world with significant financial
clout and unique discrepancies of needs will expand
the volume of the global marketplace.
What will the future bring? Though no one can
predict the future, we can hypothesize outcomes
based on past and present behaviors. Now ask your-
self, what current trends, ideas, and actions will likely
shape the outlook of the world in which we live? If
the terms technology and social media, sustainabil-
ity, and ethical decision making, come to mind, then
you have already begun to recognize the important
key issues in the progression of modern society. It
will be critical for you to become familiar with such
current issues and to develop an understanding of
what skills professionals will need to cultivate to
manage the challenges that lie ahead.
Technology and Social Networking
E-Hospitality
E-commerce is a form of Web retailing that fea-
tures the buying and selling of goods and services
on the Internet, consisting of direct retail shopping
(with a global reach and a 24-hour availability) and
has become a multi-billion-dollar industry for world
business. Multiple distribution channels are used
through Web sites, third-party Web sites (such as
social media network advertisements), and telephone
Copyright 2011 Kendall Hunt Publishing Company
reservation systems. There are several key aspects of
e-commerce, which include the following:
• Virtual storefronts on Web sites with online
catalogs
• Gathering and usage of demographic data
• Business-to-business exchange of data, buy-
ing, and selling
• The use of e-mail, instant messaging, and
social networking
• Security of business transactions
E-commerce has influenced the hospitality
industry to create and develop its own form of elec-
tronic commerce. E-hospitality is an innovative ser-
vice known as “total solutions” where distributing,
servicing, and supporting hospitality products to all
sizes of organizations in the industry to offer more
amenities and support services to potential guests.
Hotels, for example, are now using this resource
to improve availability to accommodate the needs
of guests around the clock. To be skilled in ever-
changing commerce technology, formal on-the-job
training must transpire. There are now video blogs
with brief interviews with industry experts, which
discuss important topics such as online market-
ing, e-commerce, and sales and marketing learning
materials. Some of the most prominent benefits are
reduced labor costs, increases in productivity, rev-
enue, consumer service convenience, and a competi-
tive advantage in the market.
Social Networking
Today, social networking is a $1.8 billion industry.
Web sites are now being created where students and
professionals in the hospitality industry can do it
all—participate in forum discussions, read/write
blogs, search for/post jobs, promote events, chat, and
facilitate business connections. Today, hospitality
professionals can share insider information with up-
and-coming students to discuss topics of interest in
forums, groups, by means of private messages, or in a
chat room, which may lead to new friendships, career
exploration, and professional development.
Now that online social networks have become an
established method of communication for many con-
sumers, online communication is now more likely to
transpire through social media than via e-mail. Social
media is a marketing technique that has gained
momentum over the past several years with promis-
ing projections for future success. Though Web sites
such as Facebook, Twitter, YouTube, and Flickr are

the most prominent, there are currently 246 social
media sites/networks up and running. It will be criti-
cal for companies not to put all their stock into a sin-
gle resource but rather to diversify their connections
with multiple networking outlets, as consumers from
a broad range of demographics are now regular users
of various social media sites.
Social marketing allows companies the freedom
to do creative things online that cannot be done on a
Web site at a relatively inexpensive cost. Companies
now improve their online presence by:
• Ensuring Web site content and media is up-to-
date and optimized
• Developing and implementing a social media
plan
• Tracking consumer behavior on the Web
• Responding quickly to the evolving needs of
guests who are traveling less frequently
• Using YouTube for virtual tours of facilities,
services, and amenities at casinos, resorts,
golf courses, and hotels
• Featuring hotel special events and promotions
on Facebook
Though this is an effective marketing technique,
companies must not wait for these trends to shape
their businesses, but rather maintain control and use
them to their advantage.
Ad Targeting
Ad targeting is a craze that has changed online adver-
tising more in the last two years than in the previous
decade, benefiting businesses and consumers alike.
Through sophisticated audience-targeting ad tech-
nology, consumers form travel-related site content,
and it categorizes each individual into a group based
on her/his online behavior. With this approach, for
example, a hotel can buy an audience rather than
space on a travel-related sight by extending behavior
including lifestyle, news, entertainment, and general
interest sights. Segmentation is based on behavior,
allowing companies to reach travelers who are most
likely to book reservations.
Text Message Marketing
Text messaging has become a prevalent development
in contemporary communication, which is writ-
ten information in text format sent from one party
to another by way of cellular phone exchange. This
is a fast, convenient, effective technique to relay
Copyright 2011 Kendall Hunt Publishing Company
C H A P T E R 3 Current Trends and Future Issues 23
messages and is growing in popularity with the
opportunity to expand.
• 86% of the population ages 13 and up have cell
phones.
• 95% of cell phones have text message capability.
• Over 90% of texts are opened and read versus
only 40% of e-mails.
• There were over 1 trillion texts sent by mobile
phone users in 2009.
Businesses are beginning to text coupons, new prod-
uct information, company updates, sales, and Web
links in a manner that is inexpensive, convenient,
and transformative.
Shared Technological Services
A model is being developed to dramatically alter the
cost performance landscape for the hotel industry
through the sharing of many technological services
such as guest room device management, concierge,
point of sales, housekeeping, facilities management,
and human resources and is now being used by multi-
ple hotel companies. These services offer efficiencies
and execution practices that will improve standards
of delivery, quality, and performance for hospitality
technology functionality for years to come.
Sustainability and
Green Hospitality
Sustainability—or the capacity to maintain, support,
or endure—is an ecological term that describes how
biological systems remain productive through diver-
sity over an extended period of time. The challenge to
sustain is to necessitate the present without compro-
mising the ability of future generations to meet their
own needs, while balancing environmental, social,
and economic demands.
The drive of human manifestation has taken a toll
on Earth’s ecosystem, which is altered by population
and impact per person determined by the ways in
which resources are used (consumption). The deplet-
ing of natural resources and pollution have been
top environmental concerns over the past several
decades. There are moral, ethical, social, and politi-
cal factors for taking action to improve conditions.
To become sustainable, we must be able to efficiently
manage the environmental, social, and economical
aspects of the world in which we live.
24 P A R T O N E Hospitality Industry
In the second half of the twentieth century, the
world population doubled, food production tripled,
energy use quadrupled, and overall economic activity
quintupled. Historically, there has been a significant
correlation between economic growth and environ-
mental degradation: As technology advances, the
environment declines. Unless resource use is moni-
tored, modern global civilization will collapse through
overexploitation of its resource base. Sustainability
efforts help to reduce the amount of resources such
as water, energy, and materials that are needed for
production, consumption, and disposal, through eco-
nomic management, product design and the imple-
mentation of new technology.
Future business leaders must be able to balance
ecologic, economic, and social concerns, which is
most commonly known as the triple bottom line.
Uneconomical growth is growth that depletes the eco-
system resulting in a declined quality of life. Conser-
vation techniques such as waste reduction and energy
efficacy reduce costs, liability insurance, environmen-
tal penalties, and disposable costs, and many lead to
an increase in market share from an improved public
image. Several key principles have been developed to
guide sustainability efforts, including
• Intergenerational equity by providing future
generations the same environment potential as
the present
• Decoupling economic growth from environ-
mental degradation—less resource intensive
and to reduce pollution
• Integration of environmental, social, and eco-
nomic sectors with developing sustain policies
• Ensuring environmental adaptability and
resilience—enhancing the adaptive capability
of the environmental system
• Preventing irreversible damage
• Accepting global responsibilities
• Education and grassroots involvement
Over the past several years, there has been increas-
ing pressure on the hospitality industry to implement
“green” initiatives in response to demands from the
government, environmental groups, and the general
public. This is commonly referred to as green hos-
pitality. The goal of green hospitality is to improve
the ability of business while increasing its positive
impact on the environment. The challenges faced
by the hospitality industry to sustain are the costs of
increased pressure on the natural, social, and environ-
mental resources generated by increased number of
Copyright 2011 Kendall Hunt Publishing Company
tourists in concentrated tourism destinations. More-
over, climate change threatens many of the prized
tourism destinations such as beaches, islands, and
coral reefs.
Expanded tourism destination development has
spread travelers across the globe at the expense of
natural and social environmental assets. Tourism has
a major impact on local communities in tourist desti-
nations. On the one hand, it can be a significant source
of income and employment for local people; on the
other, it can pose a threat to an area’s social fabric
and its natural and cultural heritage, on which it ulti-
mately depends. These destinations can be conserved
if responsible planning and careful management of
facilities and resources transpires. The challenge and
goal for the future is to incorporate win–win solu-
tions with travelers and tourist destinations, which
will require dynamic thinking and creative solutions.
The hospitality industry has developed the following
goals to promote sustainability:
1. Design equipment that uses fewer resources.
2. Use sustainable food and beverage options.
3. Decrease environmental impacts while increas-
ing profitability.
4. Integrate sustainability management systems
while staying ahead of the competition.
5. Increasing the reputation of an operation to
attract investment by incorporating respon-
sible marketing and corporate social responsi-
bility policies.
More specifically, many hotels are now develop-
ing resourceful methods to promote sustainability by
implementing
• Low-flow showerheads
• Faucet aerators
• Low-flow lawn sprinkler systems
• Compact fluorescent lighting
• Energy-efficient central heating and air-condi-
tioning units
• Bulk soap and shampoo dispensers in showers
• Recycled paper tissues
• Unbleached stationary
• In-room recycling deposit
• Organic cotton linens
• Air and water filtrations systems
• Environmentally safe cleaning products
A recent study has shown that 70% of tourists are
willing to pay an extra 9% to 10% in premiums when
it comes to environmentally friendly lodgings.

An innovative approach practiced by the
Fontainebleau Hilton Resort and Towers in Miami
Beach, Florida, is to reuse laundry detergent barrels
as garbage bins. “Greening” hotel towels and linens
is a resourceful conservation method now practiced
where guests and housekeeping agree to leave the
same towels and linens for use in rooms for multiple
days, reducing water and detergent expenses; this is
most commonly referred to as the linen and towel
program. These techniques have been used in hotels
such as The Hampton Inn, Embassy Suites, Best
Western, and Comfort Inns across the nation.
Ethics in Hospitality
Ethical behavior has been and always will be a chal-
lenge for corporate executives, managers, employ-
ees, and guests alike. Hospitality, travel, and tourism
is the fastest-growing industry in the world, governed
by powerful corporate and political influences. As
discussed in this chapter, many companies are using
technology to improve productivity and reduce labor
costs. However, if labor costs are being reduced as a
result of technology, then that means employees are
losing hours, income, and jobs.
As businesses and services expand, revenue
increases, which requires meticulously detailed
financial management and allocation of funds. One
could ask if it is ethical to pay hospitality employ-
ees minimum wage with no health insurance, medi-
cal benefits, retirement, vacation, or sick days when
they have families to support. Other hospitality
employees may have jobs where tips are associated
as supplemental income. However, corporate man-
dates instruct them to share their tips with other non-
tip-generating employees and allows the company to
reduce labor costs by lowering hourly employees’ pay
at the expense of the staff. Where do we draw the line
between profit and employee relations?
RESOURCES
Internet Sites
Amadeus Technology Institute: http://www.amadeus.com
Digital Visitor Social Media Solutions: http://www.digitalvisitor.co.uk
Ecole Hoteliere de Lausanne Institute of Technology and Entrepreneurship: http://www.ehlite.com
Globally Green Hospitality Consortium: http://www.globallygreenhospitality.com
Hotel Technology Next Generation: http://www.htng.org
Hospitality Trends: http://www.htrends.com
Copyright 2011 Kendall Hunt Publishing Company
C H A P T E R 3 Current Trends and Future Issues 25
A corporate executive may implement a rule at
the expense of management and hourly employees
to increase revenue for company shareholders; a risk
management analysis may elect to not fix a problem
that will likely cause personal injury to save money;
restaurant managers may offer preferential shifts to
servers in exchange for personal favors; a cruise line
director may deflect blame on an employee instead
of taking personal accountability for a mistake; a
guest may exaggerate an dissatisfactory experience
to get monetarily compensated. The majority of theft
in the workplace is committed by employees. Will a
blackjack dealer pocket a one hundred dollar casino
chip or bartender embezzle a bottle of vodka, will a
hotel maid steal guests’ personal belongings while
cleaning a room, or will a theme park employee scalp
employee entry passes for cash? These are all dis-
honest actions that may compromise the integrity of
the service industry. It will be critical for hospital-
ity professionals of the future to demonstrate ethical
behavior over myriad situations and circumstances to
minimize corruption and maintain legitimacy within
the industry.
Summary
The hospitality industry is changing at a rapid rate
due to technological advancements that will require
future professionals to be skilled in technology
while conserving natural resources to sustain our
environment. Leisure professionals will need to
exceed guest expectations from a growing clientele
and accommodate their ever-changing needs to stay
relevant. Future leaders must be able to analyze and
identify current trends to understand future con-
sumer behavior by conducting research while main-
taining ethical behavior to uphold integrity within
the industry.
26 P A R T O N E Hospitality Industry

Inn Hospitality: http://www.InnHospitality.com

Travel Mole: http://www.TravelMole.com
VFM Leonardo (online visual content management and distribution for the hotel industry): http://www.vfmleonardo.com

References
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Copyright 2011 Kendall Hunt Publishing Company

Name Date

Review Questions
CHAPTER

1. Discuss several ways in which technology will influence the future of the hospitality industry.
3
2. Describe several ways in which social networking can improve the hospitality industry.

3. List four ways in which hospitality companies can improve their online presence through social media.

4. Define e-hospitality.

5. Explain how text messaging can be an effective marketing tool in the hospitality industry.

6. Why is sustainability a future concern?

7. List several ways in which hospitality services can improve sustainability.

8. Discuss some of the challenges hospitality professionals will face to maintain sustainability.

9. List and describe five creative/innovative sustainability solutions within the hospitality industry.

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Copyright 2011 Kendall Hunt Publishing Company

28 P A R T O N E Hospitality Industry

10. Why is the demonstration of ethical behavior critical to future success in the hospitality industry?

11. What are the greatest challenges hospitality employees will face in the future regarding ethics in the workplace?

Copyright 2011 Kendall Hunt Publishing Company