TOURISM AND

HOSPITALITY
INDUSTRY

TEAM 9
 TOURISM INDUSTRY
The travel and tourism industry is a good example of the volatile industries.
To begin with, this industry is not immune from political, social and
economic shifts. Many of these factors are outside the control of travel
companies and tourism boards. However, being aware of the factors can
enable people who have invested in this industry to be more proactive and
develop adaptive strategies quickly.
PROBLEMS FACED BY THIS INDUSTRY

This industry gets easily affected by tourist demand. Their demand depend
on different factors:
• Pandemic
• Taxation
• Globalization
 PANDEMIC
• We can explain this problem taking the present Covid scenario as an
example.
• During the onset of Covid, there was travel restrictions which adversely
affected this industry.
• Even after situation is getting normal, people are refraining from
travelling.
 TAXATION
• Tourism is one of the sectors that governments heavily tax. If you glance at the taxes
paid on hotel rooms and airline tickets, you can get an idea of the way taxation can
negatively affect tourism.
• It is therefore important for the travel and tourism industry to offer competitive prices for
its services and products.
• Governments should also realize that tourists already contribute to local economies
through purchases and other expenditures associated with tourism.
 GLOBALIZATION

• Globalization has created less distinctive locales. Due to global

standardization, indistinguishable products are found in every country.
• If a person is traveling in order to learn or have an opportunity to explore
the different and unique, then the lack of unique products becomes a
tourism challenge.
 SECURITY

• Although security is a major challenge to the travel and tourism industry, many industry
leaders have failed to confront security issues.
• A majority of tourism offices or visitor and convention bureaus lack or have almost no
contact with law enforcement departments. Many police departments also lack officers
who are trained in tourism oriented policing or protection services.
• It is vital for industry players to work towards creating a better security infrastructure for
travelers.
 SOLUTIONS
Despite these challenges, the travel and tourism industry is growing and
offers many employment opportunities.
More advertisement and marketing should be done.
Competitive price should be offered.
 HOSPITALITY INDUSTRY

• The hospitality industry is one of the fastest-growing sectors in the

world, it has been characterised by continued technological
advancements. 
• These advancements have done wonders to improve organisation,
efficiency and customer experience.
PROBLEMS FACED BY THIS
INDUSTRY
• They have also brought with them major issues facing the
hospitality industry have affected the way hotels and other
services are operated. 
• These issues create bottlenecks which impede the expected
growth. A better understanding of these management issues
would give the hoteliers and hospitality managers a clear edge
over the competition. 
 CONSTANTLY CHANGING EXPECTATIONS OF
CUSTOMERS

• The customer is the King in the hotel industry or hospitality industry

on the whole.
• The whole purpose of the industry is to keep customers happy. But
the margins are now decreasing.
• Keeping customers happy is not enough anymore.
• Even the service that delighted customers last time would now be an
expectation. So, delighting customers in the hospitality industry is
getting more difficult with changing customer expectations.
So, taking a cue from the social media and digital channels, the
hotel managers must act to surpass and delight their customers’
every time they walk in.
CONTINUED TECHNOLOGICAL CHANGES
AND REGULAR INNOVATION
• Today, hotel guest are more tech-savvy than ever. Dealing
effectively and profitably with this savviness is one of the top
management issues in the hospitality industry today. 
• When they choose to stay in one hotel over the other, they
expect to find free Wi-Fi, flat-screen TVs, USB ports and so on. 
• Hotels and other businesses in the hospitality industry are
relying heavily on technology to streamline their services. 
 SECURITY CHALLENGES
• This again is one of the top management issues in the hospitality industry. 
• The threat of terrorism today has changed how people travel and where they
travel.
• Hotel managers are tasked with the duty of ensuring that proper surveillance
systems are installed and maintained throughout so that guests can feel
comfortable and safe. 
• To deal with security challenged, hotel managers have to rely on high tech
gadgets and software, which can be expensive to acquire and maintain.
SKILLED LABOUR SHORTAGE, STAFF TURNOVER
AND IRREGULAR WORKING HOURS

• This can be said to the biggest management issue in the hotel

industry.
• In recent years, the high turnover and increasing competition
have only added flame to the issue of the skilled labour shortage
in the hospitality industry on the whole. 
• Because customers expect a lot more nowadays, employees in
the hospitality industry, in turn, are forced to deal with long and
sometimes irregular working hours. 
• To make sure that everything is running smoothly at all times,
managers have to find new ways to manage their stress
because they cannot afford to lose it or burnout.
• According to research from BigHospitality, salary is the most
important factor to consider for retaining the best staff in the
hospitality industry.
 SEASONALITY OF HOSPITALITY
INDUSTRY
• Peak seasons in the hospitality industry tend to bring a lot of business
but it also brings with undue stress to the management and its staff.  
• Managers are also charged with the responsibility of keeping up with
the ongoing changes in booking and pricing, which can be daunting
for anyone. 
• While more staff, as well as resources, are required during peak
season, the percentage drop heavily during the lean season making it
difficult for hospitality managers to ensure profitability.
 SOLUTION

• Innovation, diversification and effective management would

continue to hold the key in terms of managing the issue of
seasonality in the hospitality industry.
• This industry should introduce stronger policies to retain skilled
employees and increase employee engagement which in turn
can reduce the turnover rate.
 CONCLUSION
It is important to acknowledge the issues few of which would
continue to pose threats in the future.
We need to understand the nature of these threats and then
devise ways to counter these management issues.
THANK YOU!