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Case Analysis

Current trends and issues of tourism and hospitality

Overview

Hotels and other kinds of lodging are included in the hospitality industry, as
are restaurants, bars, travel agencies, and tour operators. In response to
clients' altering behavior as a result of the corona outbreak, it's vital to adapt
the latest hospitality trends. Despite this, the bulk of trends have resulted in
larger changes in consumer behavior. Firms must keep up with the latest
hospitality trends to avoid falling behind in the industry. Keeping up with the
industry as a whole is also a fantastic way to ensure that your business is
providing the kind of customer service that customers want and expect. As a
result of COVID, customers' needs and priorities have evolved.

Problems

COVID-19 is now wreaking havoc on the Philippines' hotel industry. As of


October 2019, tourism in the Philippines is a Php 2.2 trillion business that
accounts for more than 12% of the country's GDP. According to Secretary
Bernadette Romulo-Puyat of the Department of Tourism (DOT), the industry
employs around 5.4 million people in diverse areas such as lodging and
transportation.

The statistics will have substantially changed by May 2020. The number of
tourists visiting the Philippines has dropped by more than half, from 2.8
million to slightly over 1 million. According to Secretary Puyat, earnings from
tourist arrivals fell by 55 percent from January to April of this year. Tourist
travel has decreased by roughly 60% worldwide.

As months passed by, the restrictions due to covid-19 has been slightly off, the
PHOA wishes to see a relaxation of the guidelines on domestic inter-zonal
travel and eventually inbound travel. In particular, the association would like
to see the following:

• For fully vaccinated travelers to move between NCR and GCQ/MGCQ areas
without the need for an RT-PCR negative test result.

• For fully vaccinated persons to be allowed to check in at staycation hotels in


NCR under Alert Level 4.
• For the daily quota of arriving international passengers in the country’s
gateways to be increased.

But even though the restrictions have been slightly lifted, the hospitality sector
still suffers.

Despite the Pandemic, Hospitality Sector also suffer from Continuously


Changing Consumer demands, Competition from Hotel industry alternatives,
Ineffective Marketing due to technological shyness, and Poor customer
satisfaction as delights become expectations, and many more challenges.

Alternative solution

As every business in the whole world, they find a way to cope up with the
pandemic. The pandemic is expected to have long-term consequences because
it has caused a significant shift in customer experience across the hospitality
industry. There are also questions about whether the Create Law's lower CIT
rates, tax relief measures, and redesigned incentives will attract more
investments, resulting in more tourists and job creation.

To ensure a more secure future, hotel owners and operators must reassess
their strategy, evaluate their possibilities, and make the appropriate decisions.
Staying informed about the government's current subsidy options, getting
useful guidance, and being hopeful will help you recover more quickly.

Evaluation of alternatives

1. Adopt a Hybrid or Flexible Approach When Working Remotely - Working


from home has become the norm for most employees, and it is expected
to become more than a fleeting fad. A trend produced by the worldwide
public health issue, a fresh number of high-profile corporations– with
large digital companies like Facebook, Twitter, and Amazon heading the
way– declared that they will adopt a flexible or hybrid technique to
working remotely.
2. Holistic hospitality, health & well-being - Because of the COVID
pandemic, preventative medicine and self-care are unquestionably
popular right now. The wellness business is morphing into a flourishing
trillion-dollar market, and hospitality venues, particularly those with
existing spa facilities, are ideally positioned to capture a major piece of
the pie.
3. Health diagnostic technology and bespoke treatment plans delivered by
experts who conduct personal or group sessions to develop vitality,
healing, stress management, emotional balance, mindfulness, and better
sleep are rapidly growing in demand, in addition to the usual beauty and
relaxation spa offerings.
4. Mobile Technology - Mobile platforms are currently being used by hotels
and resorts for guest loyalty, corporate branding, advertising, cross-
selling, and marketing. Hotels and other hospitality-related enterprises
must now have mobile applications. Today's market now includes a
variety of hotel management software.
5. In the hotel business, mobile applications have been tested and proved to
provide exceptional customer service. Mobile-friendly websites and
applications, as well as real-time, up-to-date information, all contribute
to total business success. Furthermore, mobile technology helps to close
the distance between the client and the hotel.

Recommendations

Among all the 5 alternative solutions, I could recommend that Hospitality


Industry must adopt the trends in the country to be able to cope and compete
with other competitors. Every owner of a business must equipped themselves
with accurate trainings, researches and seminars that can help them improve
their skills and knowledge in running a hotel and restaurants. This pandemic,
people prefer cashless and hassle-less transactions. Upgrading the system of
the hotel is a must.

Possible results and obstacle to implementation

Not just in life, but also in business, change is unavoidable. As long as people
and technology continue to advance, so should the companies that surround
them. They should be aware of the improvements that must be made in order
to continue to deliver excellent service to their customers. The advantages of
change in company may be observed in simple scenarios such as how most of
them use technology.

The way we perform our business evolves along with us. We used to send our
mail through the mail, but now we utilize email. That modest task had made
communication both within and outside the firm much simpler. For many
others, that same basic task has enhanced their working environment.
References:

1. Hospitality Trends: The Latest Trends in Hospitality for 2022


(revfine.com)
2. The State of the Hospitality Industry in the Philippines in 2020
(tycoon.ph)
3. Challenges and prospects for the Philippine hotel industry under the
pandemic | Philstar.com
4. 6 Major Hotel Industry Challenges in 2021 – SOEGJOBS
5. Latest articles from Current Issues in Tourism (tandfonline.com)
6. Welcoming recovery: Strategies for the hospitality industry | The Manila
Times
7. Top Trends in 2022 That Will Shape the Hospitality Industry
(factstea.com)
8. 2022 Top Hospitality Industry Trends – Hotel-Online
9. 15 Hospitality Trends for 2022/2023: Future Forecasts According To
Experts - Financesonline.com
10. How To Increase Hotel Revenue? | By Bogdan Romashko –
Hospitality Net

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