41624, 11:41AM. The Relationship Between Globalisation and the Hospitality Industry: (Essay Example], 3858 words GradesF ner
The Relationship Between Globalisation and The
Hospitality Industry
Categories: Globalisation (https://gradesfixer.com/free-essay-
examples/globalisation/) Hospitality (https://gradesfixer.com/free-
essay-examples/hospitality/) Tourism industry
(nttps://gradesfixer.com/free-essay-examples/tourism-industry/)
About this sample
Table of contents
Introduction
Globalization refers to the process through which businesses develop
international influence or start operating on a global scale. On the other hand, the
hospitality industry is a wide ranging category of fields in the service industry that
revolves around event planning, lodging, transportation, theme parks, cruise line,
and myriad other fields in the tourism industry. Globalisation is currently a vital
influencing factor for the hospitality industry; this means that the growth and
development of the hospitality industry is directly proportional to globalization. In
the modern world, there is no product or service in the world left that does not, to
some extent, have global exposure. Every sector is influenced by cross-border
transactions. It is thus important to understand the actual concept of
globalisation. This essay conducts a detailed analysis of the impact of
globalisation on the hospitality sector and vice versa. It explores different
perspectives on both concepts and their interconnections and mutual
dependence in terms of the economic, political, and social growth of nations
through long-term sustainability (Ganga, 2017).
itpsigradestxercomfee-ossay-examplesithe-olatonship-between-globalisaon-anet-the-nosplaly-industry! ane41624, 11:41AM. The Relationship Between Globalisation and the Hospitality Industry: (Essay Example], 3858 words GradesF ner
Globalisation and the hospitality industry
Globalisation is a process that is related to the interconnection of different sectors
globally for the growth and development of nations, and every field is expanding
as a result of the influence of globalisation. It can be understood as a process
through which borders and geographical lines become insignificant to promote
the growth of businesses worldwide. The legal, economic, political, social,
technical, and cultural domains are all affected by globalisation. Globalisation is
collaboration through a process of homogenisation; in other words, it is the
impact of one society or culture on another, with the acceptance of both. Thus, it
can be considered as an influencing factor that has the potential to change in the
nature of society and related essential factors (Cerovic, et al, 2015). It also ‘erases’
countries’ borders to allow open and effective trade; however, globalisation does
not take into account local culture (https://gradesfixer.com/free-essay-
examples/descriptive-writing-about-a-restaurant/) and practices.
Changes in the global economy are achieved through eliminating certain
obstructions, which facilitate the universal exchange of goods, healthy
competition, the free flow of workers and capital over national borders, the free
development of speculations, and so forth. The travel industry, being undeniably
important, reflects these changes.
The travel industry serves as an example of the effects of globalisation,
particularly when considering the advances that have been made in recording
data and correspondence, efficient transport, and so forth. As an example of
development and its impact on the hospitality industry, the travel industry now
affects, the travel industry significantly affects other sectors in a roundabout
manner. The initial belief on the global community that the travel industry's growth
is an effect of economic advancement has been confirmed over and over again
through studies that have indicated the travel industry is a key driver of economic
growth.
With consideration of how much the travel industry is turning into a solid pull of
advancement for many sectors, any individual entity or business entity looking to
venture into the hospitality industry should take advantage of the many travellers
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and tourists involved to tap money. Similarly, the travel industry is promoting the
potential for advancement of gains from trade in the hospitality industry.
Globalisation is bringing the world closer with the help of the hospitality industry
because it helps different nations to exchange cultures, goods, and resources
(Cline, 2017). It also assists to balance inequality in employment, as, if a country is
facing an employment crisis, the residents of that country could move to another
to seek employment, which benefits the economies of both countries. Also,
globalisation contributes to reducing the prices of various products that were
previously limited to a particular area or nation. Now, as a result of the
advancement of technologies and globalisations, products that were once limited
to a particular region can be found throughout the world. This helps various
sectors to reduce import costs, which is also an influencing factor for the
hospitality industry. This represents a win-win situation for both consumer and
buyers. Furthermore, globalization enhances competition among companies, and
they can participate in the growth of their respective businesses to promote long-
term sustainability and their profitability in the future.
When considering the case of the hospitality industry, it can be noted that people
who work in this sector frequently move from one country to another in pursuit of
employment. This phenomenon has increased the occupation rates of
restaurants and hotels. Hospitality and globalisation affect each other in various
ways, including economic, political, environmental, social, and legal factors. When
a country's hospitality industry is globalised, the host country enjoys greater
revenues (Sheel, 2013). Through many sources, both direct and indirect, nations
collect significant amounts of revenue through the hospitality industry. The
hospitality sector is attracting more clients who are interested in leisure travel and
business tourism. Now, many companies are sponsoring the business tours of
potential clients or representatives by paying for their global business tours.
Companies spend lavishly on these business meetings.
Along with that, MICE (Meetings, incentives, Conventions, and Exhibitions) tourism
segment is a new trend in globalisation and is a helpful way by which a country
can attract economic benefits. It enhances the foreign exchange of a nation,
which increases the GDP of that country. The hospitality sector involves
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collaboration among the many firms, both small and large, that is the suppliers of
and provides basic support to the hospitality industry. Through their trips, visitors
from different nations support and benefit both these large and small firms, as
well as the hotel sector. This helps to promote the financial development of a
nation. The table below is a sure-fire way of telling that development of
international tourism has been on the rise from the year 1990 to date.
Global hospitality also provides a framework for the cultural development of
nations. The worldwide hospitality industry provides a framework in which people
of different cultural backgrounds and with different traditions can connect. It
allows people to understand the faiths, beliefs, and prejudices of other countries.
Through the exchange of culture, the internal peace and harmony of countries are
maintained, which reduces border disputes between different nations. Cultural
development helps organizations to strengthen internal relationships, which may
assist in future development and business processes.
The hospitality industry has contributed significantly to the social development of
many countries, and it has improved the quality of life globally. in the
contemporary world, individuals of all backgrounds are influenced by the
hospitality sector regarding their leisure and relaxation choices. It has brought
people from different societies closer. Moreover, this industry has provided job
opportunities for a large number of individuals throughout the world. As a result,
many people who came from poor families are now able to support themselves
and their families. Thus, it could be argued that the global hospitality industry has
promoted people's social values.
The contemporary hospitality sector (https://gradesfixer.com/free-essay-
examples/impact-of-covid-19-on-the-united-kingdom-tourism-industry/) has
become more modern and global. The hospitality industry cannot survive without
collaboration among providers of transportation, so it is the collaboration of
transportation providers, providers of food and beverage, shopping store owners,
visitor feedback, travel agents, government support, holiday planners and
infrastructure that makeup success. All of these components are essential for the
globalization of the hospitality industry. Through the Internet, every country is now
connected, either directly or indirectly, for business and development (Bird &
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Thomlinson, 2014). The hospitality sector of a particular country can potentially
attract customers not only from that country but also from other nations. For this
purpose, actors in the hospitality sector are dependent on travel agents operating
in both their local market as well as the global market. Travel agents who operate
on a global scale can provide a country's hospitality sector with more profitable
customers, as such travel agents can offer hotels major projects, including
conferences, business meetings, and fashion exhibitions among other events.
Through travel agents, large numbers of people can sell their services, and this
enhances the profits of players in the hospitality industry. For the move of the
potential customer, the global transportation sector is the backbone of private
travel. Without the support of this medium, the interconnection of hospitality and
globalization would not be possible, as they are interdependent on each other.
With the hospitality sectors of many countries attracting increased numbers of
visitors, the transportation sector also raises its costs and reaps the benefits
regarding profitability. The global transportation industry is not only focused on
earning profits through customer journeys. However, airlines, cruise companies,
and local transportation providers are all improving their standards to better the
experience of customers. Moreover, taxi owners are earning major profits from the
tourism and hospitality sector globally.
The vital need of a living individual is food, The hospitality industry is founded on
food and beverages. People choose to use the services of the hospitality industry
due to the ease and luxury that they offer, and food and beverages are the
essential aspect of this sector. The agricultural sector is directly associated with
this factor. This is not the case in only certain countries; rather, this sector is also
globally connected with the hospitality industry in that it fulfils the basic food
needs of customers. The agriculture sector is the basis for the incomes of both
skilled and unskilled workers and middle-class families (Peric, 2005). Globally, due
to advancements in the hospitality industry, middle-class families earn their
income through agriculture, whether they engage in it as a profession or whether
engaging in farming is part of their family tradition. The agricultural sector
increases the import-export volumes of the hospitality industry, as this industry
attracts customers from all over the world, and, to cope with their requirements
and standards, they have to provide the best supply of products.
itpsigradestxercomfee-ossay-examplesithe-olatonship-between-globalisaon-anet-the-nosplaly-industry! siziss, 184 AN The Relationship Between Globalsation andthe Hoslialty Industry: Essay Example}, 3958 words GadesFinor
The hospitality industry has a significant influence on the global retail market. The
hospital sectors of each country attract visitors from various countries; such
visitors often tend to spend money in local markets and may enter into business
relationships with entrepreneurs who sell goods. This results in foreign direct
investment (FDI), which is a leading factor for the GDP of any country. The
hospitality industry has promoted FDI. The three main concerns when it comes to
FDI are ownership, location, and globalisation. Investors prefer investing in
countries in which securing ownership of a business is easy (Team, 2017). A
country that is welcoming to FD! provides competitive advantages with which to
cope with local competitors. Companies prefer large markets when developing
new businesses and this is a reality that has been witnessed globally. Finally, the
globalisation of international relationships is of the utmost concern to the foreign
investors, as it allows them to control new ventures remotely.
A study was conducted by Yu et al, in the global hospitality industry. As per this
spatial analysis, it was evident that the number of hotel rooms is increasing when
compared to the number of hotels. As a result of globalisation and the resulting
rise in tourism, this sector is increasing the availability of infrastructure and
reframing the existing structures worldwide.
During the 1970s, universal lodging organizations endeavoured to utilize
institutionalisation procedures in their administrations to ensure consistency
about quality. institutionalisation can make a lodging brand unmistakable, and
this is what customers are searching for. Thus, consistency in the delivery of
quality is important for companies in the hospitality industry which need repeat
customers. Lodging organisations need to make adjustments to their institutional
arrangements to cater to clients’ preferences or inclinations. The travel industry
faces numerous challenges, including language differences
(https://gradesfixer.com/free-essay-examples/mastering-effective-
organizational-communication/), competition, and social contrasts. It is
sometimes difficult for a lodging organisation to enter another nation, particularly
when a country has different social customs. For instance, liquor is prohibited in
Muslim societies, indians do not eat beef, and betting is illegal in many nations.
Organisations need to adjust to new conditions, including different customers,
laws, culture, and customs. For example, accommodation providers in Western
itpsigradestxercomfee-ossay-examplesithe-olatonship-between-globalisaon-anet-the-nosplaly-industry! eineiss, 184 AN The Relationship Between Globalsation andthe Hoslialty Industry: Essay Example}, 3958 words GadesFinor
nations usually rely on settlement incomes to generate profits, whereas their Asian
counterparts rely on sustenance charges. Hospitality organisations in Asia tend to
concentrate on providing more attractive dining options and focus on nearby
coffee shops and also medium-term remote visitors. Numerous hotel companies
that have made changes to their promotional approaches and have restricted
their service offerings have been successful, while others have failed as a result of
employing inappropriate business strategies and failing to adapt to the culture of
anew region (Zhang, 2005). ‘When it comes to advertising, it is essential to take
globalisation into account, as doing so is necessary to satisfy different tastes, to
address issues that may arise in different regions, and to attend to purchasers’
non-indistinguishable necessities. Furthermore, it is worth mentioning that some
clients are very particular about exotic menus and will dismiss a hotel if it does not
meet their expectations. For example, a hotel in Bangkok should have a
considerable part of Thai food in its menu so that foreigners who visit it feel like
they are in Thailand; they should not eat the French fries they are accustomed to
eating in their home.
On the same note, the celebrated ‘7-star’ Burj al Arab hotel represents a
remarkable achievement. This hotel was established in the state of a surging
Arabian dhow cruise; it is homage to the country’s nautical legacy. It has become
a symbol of Dubai, and serves to represent Dubai to the rest of the world.
Human resources departments in the hospitality industry also need to take
globalisation into account. Those employees who are responsible for Human
Resource Management are the backbone of an organisation; they should learn
and comprehend the employment laws of their countries and the employment
laws of the countries in which their companies operate in. Nations differ when it
comes to workers’ rights and employment laws. Human resources administrators
in the hospitality industry must be extremely cautious when it comes to workers’
rights and employment laws, or they could cost their employers millions in fines
and punishments. Many contemporary hotels are limited regarding staffing. Hiring
local employees can be helpful, as they know their ways of life extremely well, and
they can speak local languages, which is helpful when serving local customers;
also, multilingual staff can serve tourists from other countries. It is almost always
helpful to have employees from different areas, as this results in variety; however,
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they will have their convictions, foundation, and traditions. Thinking globally is
essential when addressing social conflicts, and HR administrators in the hospitality
sector need to plan effectively.
Hotels’ globalisation procedures are occasionally insufficient, particularly for
attracting tourists. When people travel for tourist purposes, they wish to encounter
contrast and experience something new. In the absence of such opportunities,
travelers miss out on opportunities to enjoy themselves. Contemporary rivalries
between hotels are getting fiercer; as a result, some hospitality organisations
have attempted to distinguish themselves from competitors. Distinguishing
factors among hotels depends on the capacity to give visitors the time of their life.
The unique features of hotels can make their guests perceive them as
memorable. For instance, in the United States, there is a hotel called the Dog Bark
Park Inn, which resembles a gigantic beagle. Visitors rest and eat in the ‘body’ of
the beagle.
Another example is the Alcatraz Hotel in Germany. It was previously a jail; the
proprietor maintained the original atmosphere of the building, as the rooms
resemble prison cells. Visitors likewise received striped night robes that make
them look like detainees rather than typical shower robes. The main distinction
between this hotel and a genuine jail is that visitors can abandon the former
whenever they choose to do so (O'Neil, 2018). The more uncommon one is a hotel
formed entirely of ice. While this may sound improbable, one such institution, the
Ice Hotel, can be found in Canada. This hotel has become world-renowned due to
its winter attractions; the structure of the hotel as well as the works of art within it
is very intriguing. Most visitors perceive this hotel as beautiful and memorable and
consider the experience of visiting it to be unique and charming. These stories
indicate that hoteliers must think and act globally and must try to distinguish
themselves from their competitors.
itis evident that there are advantages and challenges of multinational hotel
involvement, ie, globalization and the hotel industry. The challenges or costs that
come from going global as a player in the hotel industry include negative
environmental and cultural consequences, foreign domination, decreased
economic benefits, sunk costs and investment risks, overdependence on
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multinationals, and inappropriate form and scale of tourism development among
other things. On the flip side, globalisation makes it easier for multinational
companies to invest in many new locations. Additionally, it facilitates the transfer
of management and technical skills from one country to another. This helps any
country willing to be involved to gradually develop their employment sectors and
generate revenue, Multinational corporations are usually the first beneficiaries to
the success of globalization.
The globalisation of the hospitality industry offers many advantages; however,
these advantages (https://gradesfixer.com/free-essay-examples/the- pros-and-
cons-of-traveling-balancing-the-benefits-and-drawbacks/) are not easy to
come by because there are a lot of drawbacks (Theuns, 2008). Globalisation
results in considerable disadvantages for various nations and leads to many
environmental issues. The International Holocaust Remembrance Alliance, United
Nations World Tourism Organization, and United Nations Environmental Program
have collectively implemented an initiative intended to promote the use of
renewable sources of energy and their use in the hospitality industry. In the year
2007, the Hotel Energy Solutions project, which focuses on protecting the
environment and reducing the carbon footprint of individual entities and
organizations, was initiated. Developed nations realize the full advantage of free
trade in comparison to growing nations.
Legislation concerning environmental issues (https://gradesfixer.com/free-essay-
examples/when- grizzlies-walked-upright-analysis/) in developing nations may
be less strict in comparison to developed nations. in this way, issues related to the
environment can be considered an effect of globalisation. The division of labor
can also be an inconvenience to employers. Nations may experience difficulty in
retaining their best workers, as other countries may attempt to lure them by
offering higher wages.
The hospitality business is associated with globalisation to different degrees. As
clarified previously, globalisation leads to higher guest rates all over the world. The
hospitality industry ought to adjust to various societies and religions with the end
goal of working effectively in a globalized world. Findings and data concerning
various nations and societies can be shared, which can make it simpler to
itpsigradestxercomfee-ossay-examplesithe-olatonship-between-globalisaon-anet-the-nosplaly-industry! sine46124, 1141 AM The Relationship Beween lobastion and he Hosalty nus Essay Exempla, 3958 words GradesFuxor
address the needs of different societies. Different hospitality businesses focus on
different target groups. For instance, the Intercontinental Hotel Group has centres
that focus on the needs of Chinese tourists. Intercontinental discovered that
Chinese visitors were not satisfied with the Western approach to hospitality. The
organization thus chose to consider new ideas to satisfy the desires of Chinese
guests.
if the issues associated with hospitality and globalisation are discussed in depth,
‘one may conclude that the natural environments of various nations have been
worst affected, Natural resources are degrading on a daily basis. In many regions
and countries, riots and unrest have occurred due to native populations
becoming annoyed by outsiders, as tourists sometimes do not treat the countries
they are visiting with respect and spoil their natural beauty
(https://gradesfixer.com/free-essay-examples/the-benefits-of-living-in-a-
small-town/) and public features and engage in antisocial activities there. Many
countries, such as iceland and Greece, are facing the problem of excessive
tourism due to the impact of globalisation on the hospitality sector. Many people
from different countries are booking island hotels in Greece for destination
weddings. The governments of these countries are unable to address the issue of
excessive tourism, which is degrading the quality of service in hotels, restaurants,
and in other places. Accommodation issues are the other main problem
confronting the global hospitality industry (Srivastava, 2017). Moreover, the
inflation rate is also increasing due to increased tourism expenses. Hotel and
lounge owners run monopolies; these, in turn, affect the tourism experiences of
individuals.
Conclusion
Hospitality industry and globalisation at large are helping when it comes to
bringing employment into an economy. If a country is facing an employment
crisis, then the people of the said country could move to another country for jobs
and in turn, give support to the economy of both countries. Additionally,
globalisation is helping in the reduction of the price of various products which was
earlier confined to a particular area or nation.
itpsigradestxercomfee-ossay-examplesithe-olatonship-between-globalisaon-anet-the-nosplaly-industry! sone46124, 1141 AM The Relationship Beween lobastion and he Hosalty nus Essay Exempla, 3958 words GradesFuxor
The global hospitality industry also provides a framework for the cultural
development of nations. Through it, there are provisions of frameworks to connect
with people of different cultures and traditions. It gives a way to understand the
faith, beliefs and normative social constructs of the different countries. Through
the exchange of cultural knowledge (https://gradesfixer.com/free-essay-
examples/ritual-of-memory-analysis/), the internal peace and harmony of the
different countries are maintained, and this reduces the border disputes of the
different countries. The hospitality industry has contributed a lot to the social
development of the society. It has raised the lifestyle standard of the world, Now
every individual is influenced by this sector for the relaxation and leisure as per
their financial strata. It has brought the people of different societies closer.
Globalisation causes a considerable measure of drawbacks for various nations
and the issues related to the environment (Theuns, 2008). Developed nations
acquire focal points of the unhindered commerce economy than growing nations.
It very well may be viewed as an unreasonable rivalry, since the developed
nations have more assets to utilize. Besides, because of globalisation,
organisations may re-appropriate an office to another nation. Natural resources
are degrading day by day. In many regions and countries, the situation of Riot and
unrest has been raised as the local natives of the countries are annoyed by the
outside people.
In summary, globalisation and hospitality have both positive and negative
interconnections with each other, but the benefits outweigh the disadvantages.
With globalization every company in the hospitality industry has a chance to
attend to more customers (both on the domestic and international front). The
advantage of this is that the odds of being successful in the industry increase
significantly; tapping from a global pool of customers enables hotel owners to
maximize on their comparative advantage and still realize a competitive edge
against rivals.
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itpsigradestxercomfee-ossay-examplesithe-olatonship-between-globalisaon-anet-the-nosplaly-industry! anne46124, 1141 AM The Relationship Between Globalisation andthe Hosolialy Industry: Essay Example, 3958 words GradesFinor
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