Lesson 1: Trends and Issues in the Hospitality Industry- Socio-Cultural Aspect

Specific Objectives:
 Evaluate the contributions and impacts of hospitality and tourism in social-cultural aspect

 Appraise the sustainability of tourism and hospitality industry and the possible future directions

Capturing the Concept:

How does the socio-cultural aspect affect the hospitality industry?
The socio-cultural aspect greatly influences the hospitality industry. It shapes customer
expectations, influences staff training and diversity, and drives the incorporation of local customs
and traditions. Embracing cultural diversity and social responsibility are essential for hospitality
establishments to provide exceptional guest experiences and contribute positively to the
communities they operate in.

Hunting for Information: What is Socio-Cultural Aspect

Socio-cultural aspects include changes in culture and demographics. Social trends, fashion and
culture are all examples of what we would call 'social factors'. These factors affect our attitudes, opinions,
perception, cognition and interests, and can impact how we regard a product or service.
Customers of tourism and hospitality can be distinguished based on a number of characteristics.
Among them, generations and lifestyles have received increasing attention as predictors of social-cultural
trend in the tourism and hospitality industry.
The Trends and Issues
A. Emigration and homecoming visits
Emigration has become increasingly popular in the last few decades. After people emigrate for
some time, there is a higher tendency for them to travel back to their home country on vacation to
visit family and friends

B. Aging population
As the baby boomers grow older in the coming decades, great change will occur across North
America, Europe and some Asian countries as the older people become a very important part of the
population. It is estimated that the population of 65 years and older will increase from 6.9% in 2000
to almost 16% in year 2050. A higher percentage of the older population will be found in the more
developed countries, where those aged 65 and above will increase from only 14.3% of the population
in 2000 to 26.9% in 2050. The needs of older people are very different from the needs of middle aged
and younger people and this can be a challenge to marketing for the tourism and hospitality industry.
 Important notes:
- the older people are experienced consumers, so they do not want to read flowery
language. It is therefore important to keep message direct
- A lot of information has to be given
- They have a lot of time on their hands, and company must be prepared for answering
many more detailed questions than for young consumers.
 What should be done to cater the aging population better?
 - The hotel must be designed in a user-friendly manner for seniors, who will otherwise be
driven away.
- The facilities should recognize the physical limitations of the older customers.
- Walking up the steps at the entrance may be difficult for some, not to mention carrying
the luggage with them.
- The restaurants must also provide traditional comfort foods (which the older customers
are more familiar with), nutrient-rich foods,
- Vegetables and fruits, which suit the tastes and nutrition requirements of the older
customers.
- About pricing, some of them do not have stable income and are therefore more careful
about spending than the average younger consumers. Tourism and hospitality industry
has to consider offering affordable or value-for-money options for these older consumers.
C. Multi- generation travel
Another trend is the increasing number of grandparents travelling with their grandchildren.
The different generations may usually live apart from each other and make use of trips as mini family
reunion. Intergenerational travel offers grandchildren and grandparents, uncles, aunts and nephews
the time to meet and enjoy their time together. A challenge for the tourism and hospitality industry is
how to appeal to different groups of customers whose tastes could be very different.
 How to cater the multi-generation travel?
- Organize packages and provide discount for travel with grandchildren to address the
multi-generation market. The packages may offer activities and accommodations
sensitive to the ages of the grandchildren.
Ex. Cruising and exploring wildlife safari or national parks
- Attend to their different habits, patterns and needs and make sure that their service meets
the needs of all guests regardless of the generation.
- Hotels may need to offer choices that give customer options (e.g., a variety of breakfast
choices) rather than standardized packages.
D. Single parent family travel
With the increasing divorce rate, single-parent families have become larger in number in many
countries. On average, single parents have less money than two-parent families but are still eager to
enjoy a great vacation with the children so long as they can afford. However, most hotels and resorts
are ignorant of their customers’ needs.
 What should be offered to them?
- Their tours are organized exclusively for the single parents families and are priced at a
reasonable amount for one adult and one child. The packaged arrangement helps reduce
the extra organizational burden often felt by single parents.
- These packages are exclusive to single parents families and so the participants can feel
easier than being with other traditional or nuclear families.
E. Increase in one-child families
The role of parents as a gatekeeper in the past has gradually changed to a cooperative partner
since more focus would be put on to the single kids in such families. This trend is particularly
significant among the mainland’s tourists whose family’s structure is governed by the government’s
one-child policy.
The influence of children on parents’ travel decisions becomes significant. Instead of thinking
about what hotel facilities and entertainments can be provided to attract parents, hotel marketers
should also consider what offers can be provided for kids. For example, kid swimming pools and
playgrounds, interesting programs with enable parent-children communications, such as cooking
 classes, camp fire and BBQ gatherings. It should be a regular practice for hotels to give discounts and
special offers to families with their kids living together in a room, such as extra breakfast coupons or
free meals for kids.
F. More educated customers
As customers become more educated and knowledgeable, their expectations about the quality of
travel related products become higher and they tend to search for more information before making
purchasing decisions. Information about destinations, attractions, and travel related products such as
transportations and accommodations can be easily accessed through the internet including online
travel agents, hotel websites, official and unofficial tourism websites. These information enable
customers to compare offers of different suppliers of travel related products easily and efficiently.
G. Polarization of tourists’ tastes and spending

Consumers’ tendency to trade up to high-end products while seeking to save on everyday items,
along with the growing complexity of consumer tastes, has led to an increasing polarization of
consumer spend. This trend has given rise to growth opportunities at both premium and value ends of
the market and looks set to continue, leading to interesting investment opportunities in businesses that
are well positioned to capitalize on it, and is playing out differently by subsector.

- In the food and beverage sector the polarisation has tended to favour the
premium end of the market as trends such as affordable indulgence, healthier eating.
The tastes and spending power of the visitors are getting more diversified. There are visitors who
seek for comfort and luxury accommodations, but there are other visitors who are not so well-off
but look for budget travel. Some business travelers now turn to boutique hotels, which offer
tailor-made service or personalization, instead of the standardized product offered by the hotel
chains.
TRENDS RELATING TO SOCIO- CULTURAL ASPECT
According to the year of birth, four major generations can be identified, namely Veterans
(Traditionalists or, the Silent Generation, Swing and Builders), Baby boomers, Generation X and
Generation Y. A generation refers to a cohort of individuals who were born and grew up within a
particular set of years; within the same social and historical circumstances; and share similar life
experiences which differ from those born in other periods of time. The baby boomers will continue to be
the key generation in the tourism and hospitality market but the younger generations (X and Y) are also
earning money which enables them to travel by themselves.
Table 1. The characteristics of the four generations and their possible trend setting effects on the
demand for tourism, accommodation and food and beverage products and services
Generations Veterans Baby boomers Generation X Generation Y
Facts  The veterans  These are the  They were  They were born
grew up during people born after born between between 1980
the Great World War II, 1965-79, in a and 1995/2000.
Depression between 1946 and period with  They are
(1929) and 1964. They are increased optimistic, self-
World War II. identified with the divorce, big confident, and
 Those events spirit of the 1960s. layoffs and open to change,
made them  They are occupied decreased job but are also
practical, with materialistic security, impatient and
patient, and possessions and increased requiring
conservative in money and treat consumerism, immediate
their views. work and personal and extensive gratification.
They think hard sacrifice as keys to advertising.  They are good at
 work, diligence success. They  They are using
and personal continue to travel preoccupied technology and
savings are very and go out. with material want to be the
important.  They do not possessions first to try new
 They value believe in simple and shopping. technologies.
safety and advertising. They are  They place high
security  They demand full driven by value on leisure
 They value information to consistent and consider
loyalty and understand the goals to make pay, material
commitment products rather money and buy possessions and
than just believe in consumer status more
 Many of them
pictures and products. important than
are women.
descriptions  They other intrinsic
 Offer affordable
shown in emphasize values in work
or value-for- work-home (e.g., whether
money options advertisements.
 They are driven balance, and the work is
for the veterans think that interesting,
 The facilities and dedicated.
family life challenging and
must be  They want to feel
should not be whether the
designed in a connected to totally worker can take
user-friendly others neglected. responsibility
manner for  They prefer a for his or her
 They do not
seniors. caring belong to any labor)
environment. group and tend  They are
 This is a group to oppose trendsetters.
that is too big and against the  They tend to
too rich to ignore. decisions of oppose the main
 They begin to adulthood. stream values by
reach the  They adapt acting and
retirement age, well to change. thinking
meaning that they differently when
would spend more compared with
time for traveling. other
generations.
 They need
immediate
response.
 They prefer
multitask.

Impacts on  They make up  They  Gen X makes  GenY

Tourism 21% of all represent 36% up31% of all represents12%o
leisure travelers of all leisure leisure f leisure
and 14% of travelers and travelers and travelers and
business 38% of 36% of all 13% of
travelers in business business business
United States. travelers in travelers in travelers in
 They are United States. United States. United States.
financially  This segment  They take an  They take an
 conservative and takes an average average of 3.5 average of 3.9
want to be taken of 4.2 leisure trips leisure trips leisure trips and
care of when and 7.5 business and 6.9 4.2 business
travelling. trips per year. business trips trips per year.
 Seldom use  They are the per year.  Gen Y are more
internet for affluent travelers  Gen X is more active travelers
travel and most of them likely to travel than their older
information travel for with children counterparts.
search. business. than other  It is common
 Prefer to escape  Less likely to use generations. for Yers to
winter weather internet to search  They tend to search travel
and seek resting travel-related use Internet to information
and relaxing information or search travel through
activities. make purchases information. Internet and
 Prefer to visit for travel  They want the make online
casinos, meet products. need of fun travel purchase.
with different  Value health and and seek  They seek
people and wellness and they unique novel and
experience favor medical experience in fashionable
different tourism and their travels. travel
cultures. health tourism  The preferred experiences.
 They tend to take (e.g. spa, yoga travel activities  When
longer trips than and meditation). for Gen X are travelling,
other generations  They also seek to visit GenY favor to
and prefer travel excitement by amusement participate in
overseas. participating and theme amusement and
adventure travel parks, attend theme park
which involves spectator activities, go to
hunting and sports, playing night clubs and
fishing, strenuous golf and tennis dance, and look
hiking and and go to for shopping
tracking wild beaches opportunities.
animals.  GenX are  Gen Y prefers
 Like to visit usually high quality
museums, sensitive to products, even
sightsee in cities overpricing though they
and visit historical and they try to need to pay an
sites. find products additional
that offer the amount of
best value for money.
money.
Impacts on  Choose a hotel  They take more  Some studies  They are least
Accommodatio based on safety domestic and found that loyal to hotel
n and security international Generation X brands and are
rather than trips than the people spend willing to try
location or other cohorts. more than the unconventional
facilities.  They place other age brands.
 They are more greater groups as  They want
likely to re- importance on leisure accommodations
 visit the same comfort, value travelers. which provide
accommodatio and quality of  They like to affordable fast
n over a long the stay in a food, Internet
period of time. accommodation place that is access, wireless
 They have high s. They expect trendy and environments,
preferences for hotels to have stylish, and and flat-screen
learning in comfortable may not stay TVs on the
their travel furniture, in the same walls.
experiences. massaging chain hotel.  They prefer
 They concern showerheads,  Generation X accommodations
about the in-room travelers are which are easily
environmental coffeemakers, more accessible to
(air and water) makeup mirrors, demanding of shopping
quality of the and free Internet hotel facilities and
accommodatio service. facilities: souvenir buying.
n.  The educated name-brand  They want a
 Hotels may baby boomers mattresses, hotel which
need to adopt a like stylish makes them feel
universal accommodation showers, and more inspired,
design s which enable flat-panel, excited,
approach that them to explore high- important and
includes lower the culture of definition extravagant.
beds, brighter the community TVs.  They expect
lighting, larger or interact with  They want prompt,
fonts, and local residents. quiet rooms, convenient and
walk-in  They tend to wireless multi-services to
showers that fit stay longer. Internet be provided by
the use of the  They concern access and a hotel staff at
seniors. about the comfortable points of
 The facilities branding of space to work customer
should accommodation and rest. contacts.
recognize the s.  Cool and  Internet
physical  They value high-tech marketing is
limitations of personal care enough to particularly
the older and services appeal to the effective for this
customers. provided by younger cohort.
hotel staff customers.
without too
many
disturbances
during the stay.
Food  The seniors  The more  Many people  They are more
Preference usually prefer educated in this group budget-
food that they boomers may prefer fast conscious in
are familiar with, like quality food food, their food
which to a great experiences such especially choice.
extent depends as wine tasting. hamburgers.  They also prefer
on their cultural They are the  They cite fast food, but in
background. major group of branded foods contrast to other
  Some seniors wine consumers more than the cohorts, many
have become among the four other also like
more health- generations. generations, healthier foods.
conscious in They consider including  They are less
their food choice wine favorite inclined than
because of their consumption as packaged Generation X to
health problems relaxed and cookies, ice associate
such as high healthy creams, specific brands.
blood pressure activities. candies and  They consume
and diabetes.  Some older snacks. less wine but
 Many seniors are boomers have  They concern more of the
not be able to become about the other cheaper
afford luxurious grandparents and branding and alternatives,
restaurants and may visit quality of wine such as beer and
tend to visit restaurants that and are willing spirits.
family-style offer a family- to spend more  They prefer
restaurants that friendly on wine
atmosphere and sweet wines
offer good consumption. rather than dry
service at provide an  They consider
upscale, formal ones.
reasonable wine
dining  They believe
prices. consumption
experience. wine should be
 They appreciate as kinds of consumed only
restaurants that ‘sophistication’ in special
offer discounts . occasions or in
for seniors and  Generation X fine dining
menus with people are restaurants. The
lower prices and concerned with purpose for
smaller portions value and they socialization is
since their favour quick- strong.
appetites are not service  People in this
as large as those restaurants and
of the younger generation go
midscale for fast-food
people. operations that and quick-
offer all-you- service items,
can-eat salad such as burger
bars and franchises and
buffets. pizza
restaurants.

Assimilating of Learning:
Matching type. Match the characteristics of travelers from the column A to different generations of
travelers in Column B. You can have 1 or more answers for each item.
COLUMN A COLUMN B
1. They prefer fast food and quick service A.Veterans
2. Likes to visit museums, sightsee in cities and visit historical sites. B.Baby Boomers
3. They prefer accommodations which are easily accessible to C.Generation X
shopping facilities and souvenir buying.
4. Seldom use internet for travel information search. D.Generation Y
 5. They tend to use Internet to search travel information.
6. Value health and wellness and they favor medical tourism and
health tourism
7. They consider wine consumption as kinds of ‘sophistication’.
8. They are the affluent travelers and most of them travel for
business.
9. They consume less wine but more of the other cheaper
alternatives, such as beer and spirits.
10. They appreciate restaurants that offer discounts for seniors and
menus with lower prices and smaller portions since their appetites
are not as large as those of the younger people.
Moment of Truth:
YES OR NO: Write YES if the stated action should be done for the specific type of customer given
otherwise write NO.
1. The single-parent family tours should be organized exclusively for the single parents families and
are priced at a reasonable amount for one adult and one child.
2. The facilities should recognize the physical limitations of the older customers.
3. Vegetables and fruits is required to be serve to the generation Y.
4. Attend to their different habits of multi generation travelers’ patterns and needs and make sure
that their service meets the needs of all guests regardless of the generation.
5. The restaurants must provide traditional comfort foods (which the older customers are more
familiar with), nutrient-rich foods for the aging population.
6. Hotels may need to offer choices that give customer options for the seniors.
7. The aging population needs to hear flowery languages.
8. Packages for multi generation travel should include varied activities that cater all ages.
9. The hotel must be designed in a user-friendly manner for seniors.
10. A lot of information has to be given to the more educated customers because they don’t
have an access to travel information.