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Overview of Hospitality Industry in Australia

Discuss about the Challenges for Global Hospitality Industry.

Hospitality industry is one of the most flourishing sectors for rendering the economic growth of a business industry. As per the World’s business scenario, the direct contribution of hospitality sector to GDP was US$ 71.53 billion in 2016 (trademinister.gov.au, 2018). Around 4500 hotels are situated all over Australia for maintaining effective hospitality services. Around 929,000 employees are associated directly and indirectly in the hospitality sector of Australia (trademinister.gov.au, 2018). However, this very specific study has focused to make in-depth overview on how Hilton Sydney has flourished their entire process of business in the realm of hotel industry (hotelbusiness.com, 2018). In order to render the economic growth of Australia hospitality industry has left major contributions. Especially, the establishment of hotels and restaurants in a particular country decides whether the tourism business would draw the attention of large number of international customers (melbournepolytechnic.edu.au, 2018). This very specific study has provided in-depth overview on how macro environmental analysis and micro environmental analysis leaves a major positive impact for flourishing the business process of Hilton Sydney. Some of the major barriers faced by the business experts of Sydney Hilton in expanding business have also been analyzed.

Hilton Sydney has already occupied a predominant place in the realm of hospitality industry.  As per the global scenario Hilton group has expanded their widespread wings in 105 countries over 856,000 rooms (hiltonsydney.com.au, 2018). This particular group is constituted with 14 brands across different market segmentation. Around 169,000 employees are intimately associated with this very specific group. However, in Sydney around 50 hotels are available under Hilton. Hilton Sydney is located in central business district. This particular hotel is 3 minutes away from Town Hall Train Station. Australia’s GDP has been raised 18% till 2016 due to the contribution of hospitality industry (trademinister.gov.au, 2018). The contribution of hospitality industry towards this economic growth of Australia is undeniable. Providing superior quality of services to the customers is the primary mission of this very specific hotel. By rendering diversity within their products as well as services Hilton group is expected to expand their entire process of business more widely all over the World. It is expected that this specific industry within 2020 would face a remarkable future growth of around 10% from the present business scenario (trademinister.gov.au, 2018).

In order to make any kind of business deal the customers would get around 28 meeting and conference rooms along with living well premier health club and 25 swimming pools in Hilton Sydney (hiltonsydney.com.au, 2018). Customers can get full time gym facilities inside the campus. Professionals associated with customer services are well trained endowed with effective professional skills and competency. Customers do not have to face any difficulties in dealing with the service providers regarding language problem (Zopiatis, Constanti and Theocharous 2014). Professionals are very much comfortable in using multi-languages with the help of which customers from different geographical backgrounds and cultural attitudes can interact with the service providers effectively. The service providers are available for both premium customers to average cost customers (Bharwani and Butt, 2012).

Overview of Hilton Sydney

Before establishing a business process in the country like Australia, the business experts have made effective environmental analysis of Australia in order to know the political, socio-cultural, technological and legal factors.

Political

Ø  Stable political environment and regulation policy

Ø  Taxation policy is very such systematic

Ø  The country is free from political chaos

Economic

Ø  Economically developed country

Ø  Around 18% of the GDP comes from tourism sector

Ø  Inhabitants belonging to Australia are from high level of income status

Socio-cultural

Ø  People of diverse cultural backgrounds and attitudes

Ø  Implementation of diversity within workplaces

Ø  Different cultural and religious backgrounds get equal responses 

Technological

Ø  Technologically developed country

Ø  More than fifty percent of the employees are accustomed with the advanced technology

Environmental

Ø  Extreme weather exists in Australia

Ø  Business experts provides environmental friendly products and services

Ø  Some of the major regulations are strictly maintained within the country such as environmental protection act, sea protection act, whale protection act.

Legal

Ø  Implementation of anti-discrimination act, gender equality act, health and safety acts are strictly maintained at the workplace


Stable political environment along with systematic taxation policy is the core aspects for Australia for stabling large number of multinational corporations in this country.  It has already been stated that tourism sector in this very specific country is flourishing due to which around 18% of the GDP of Australia comes from this particular industry. Therefore, Hilton Sydney would not have to face any kind of difficulty in establishing their entire process of business. Australia is constituted with the people of diverse cultural backgrounds and attitudes (Kandampully, Zhang and Bilgihan, 2015). As a result, the organization like Hilton Sydney has focused to render diversity with services as well as products. As a result, people from different cultural backgrounds and attitudes would like to show their level of interest in using the services from Hilton Sydney. It is undeniable that Australia is out an out technologically developed country. People belonging to various geographical backgrounds and attitudes are well accustomed with the advancement of technology (Daskin and Tezer, 2012).


On the other hand, in quest of flourishing their business in the international market the business experts of Hilton Sydney has focused to use technology as the primary device to communicate with the customers. Australia is constituted with extreme whether in different season. As a result, Hilton Sydney has focused to make  environmental friendly products and services to draw the attention of customers. By implementing some of the major regulations such as environmental protection act, sea protection act, whale protection act, the government takes major initiative in controlling environmental issues (Line and Runyan, 2012). As a result, large number of multinational corporations has already established their business wings in the soil of Australia. Most of the inhabitable regulations for running business organizations like anti-discrimination act, gender equality act, health and safety acts are strictly maintained at the workplace of Hilton Sydney.

Strengths

Weaknesses

Ø  Economy, technology and human resource, the three major components are huge strengths for Hilton Sydney

Ø  Employees are well trained with proper professional skill and competency

Ø  Very expensive for low cost customers

Ø  Consequently, the number of target market is limited

Opportunities

Threats

Ø  Expanding the entire process of business in the internal market

Ø  Increasing the attention of international customers by expanding the business in global market

Ø  Competitors’ market threat is major threat for Hilton Sydney

Ø  The business strategy of Hotel Emirates, Jadan Cottage, Big Brook Cottage, Wagners’ Cottage are the major threat for  Hilton Sydney.  


Hilton Sydney is well developed in technology. The employees associated with this specific hotel are very much familiar with the advancement of technology. Customers by sitting at various geographical boundaries can easily access the websites of Hilton as well as their services. As a result, the communication between service providers and service users are very much flexible. In case of any kind of issue faced by the services of Hilton Sydney, the customers can communicate immediately with the service providers to resolve the issue (Daskin and Tezer, 2012). This very specific business organization by implementing diversity in services can easily expand their business process more effectively all over the World. Competitors’ market threat is major threat for Hilton Sydney. The business strategy other hotels belonging to hospitality sector are the major threats for Hilton Sydney.  In order to overcome competitors’ market threat the business experts of Hilton Sydney would have to focus on rending most effective strategies and policies (Gursoy, ahman and Swanger, 2012). The organization should increase their budget for social media promotion so that international customers can get in-depth overview about the products as well as services. People from various geographical backgrounds would like to show their interest in purchasing the products and services from Hilton Sydney. 

Cross-cultural communication barrier is one of the most effective issues affecting the business process of Hilton Sydney. Service providers are from different geographical backgrounds and attitudes. As a result, they have to face immense challenges in communicating with each other and sharing their views and thoughts regarding reaching the business goal. Organizational managers on the other hand have to face difficulties in making an effective collective decision due to cultural barrier as well as linguistic barrier (Gustavo, 2013). On the other hand, the service providers are facing immense difficulties in dealing with the customers from different language backgrounds and attitudes.

Environmental Analysis of Australia

Customers are from various geographic location having different cultural backgrounds and attitudes. As a result, service providers have to face challenges in maintaining effective communication with them.  Due to the increase of expectancy level after emergence of large competitors, Hilton Sydney facing immense barriers in establishing their entire process of business.

Currently, it has been observed the flourish of IT sector, retail sector and telecommunication sector has become a major threat for hospitality industry in enhancing their economic growth.

It is undeniable that hospitality industry in the market of Australia has immense bright future ahead (Karatepe, 2013). People belonging to various geographical backgrounds and attitudes should get equal priority and importance for being the part of Hilton Sydney. Employees should be hired as per their skill and competency level rather than their cultural as well as social backgrounds. A learner while receiving a course on hotel management and hospitality has potential and bright future career for getting security of job. On the other hand, employees like to maintain professional ethics and belief while involving within services. As a result, both the customers and employees would get equal benefits and facilities (Ivanov, 2014). The organization can easily draw the attention of large number of customers belonging to various multinational countries. Employees of Hilton Sydney can easily get an effective transferable facility based on which they can shift at their convenient place. It is assumed that the potential of future career of this very specific sector is high.

In order to become successful in the hospitality industry the transferable skills that are highly needed are as follows:

An individual should have the competency of making an effective communication among the team members so that they can provided their best performances. In order to fulfill organizational objective employees need to have effective teamwork.

Employees should have an effective leadership skill and style for providing their best endeavor towards services. With the help of participative skill of leadership, employees can take collective decision for making business strategies.

Delivering the services within proper time is one of the most effective skills that every employee should have for becoming an efficient professional.

Being professional employees should have proper skill of making effective decision at the right time in order to control sudden business crisis.

Conclusion:

The entire study has provided detailed overview on how the environmental factors leaves a major positive affect on the establishment of business like Hilton Sydney. Based on the political, economic and technological competency of Australia, the business experts of Hilton Sydney has decided to implement necessary strategies and policies for drawing the attention of customers. The study has provided detailed overview about the expected challenges that Hilton Sydney may have to face for drawing the attention of global consumers. However, potential of future career for this sector has been critically analyzed in this very specific study.

Reference List:

Bharwani, S. and Butt, N., (2012). Challenges for the global hospitality industry: an HR perspective. Worldwide Hospitality and Tourism Themes, 4(2), pp.150-162.

Brown, E.A., Thomas, N.J. and Bosselman, R.H., (2015). Are they leaving or staying: A qualitative analysis of turnover issues for Generation Y hospitality employees with a hospitality education. International Journal of Hospitality Management, 46, pp.130-137.

Carter, J. (2018). Hot Venue: Hilton Sydney relaunches $1.5m Glass Brasserie restaurant - Spice News: Special Events, Product Launches, Incentives, Conferences, Exhibition. Spice News: Special Events, Product Launches, Incentives, Conferences, Exhibition. Retrieved 31 March 2018, from https://www.spicenews.com.au/2018/03/hilton-sydney-relaunches-1-5m-glass-brasserie-restaurant/

Daskin, M. and Tezer, M., (2012). Organizational politics and turnover: An empirical research from hospitality industry. Turizam: me?unarodni znanstveno-stru?ni ?asopis, 60(3), pp.273-291.

Gursoy, D., Rahman, I. and Swanger, N., (2012). Industry's expectations from hospitality schools: What has changed?. Journal of Hospitality & Tourism Education, 24(4), pp.32-42.

Gustavo, N., (2013). Marketing management trends in tourism and hospitality industry: Facing the 21st century environment. International Journal of Marketing Studies, 5(3), p.13.

Hiltonsydney.com.au (2018). Hilton Sydney Hotel | Accommodation In Sydney CBD | Home. Hiltonsydney.com.au. Retrieved 31 March 2018, from https://www.hiltonsydney.com.au/

hotelbusiness.com (2018). Hilton Adds Properties Across Globe | Hotel Business. Hotel Business. Retrieved 31 March 2018, from https://www.hotelbusiness.com/hilton-adds-properties-across-globe/

Ivanov, S., (2014). Hotel revenue management: From theory to practice. Zangador.

Kandampully, J., Zhang, T. and Bilgihan, A., (2015). Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), pp.379-414.

Karatepe, O.M., (2013). High-performance work practices, work social support and their effects on job embeddedness and turnover intentions. International Journal of Contemporary Hospitality Management, 25(6), pp.903-921.

Line, N.D. and Runyan, R.C., 2012. Hospitality marketing research: Recent trends and future directions. International Journal of Hospitality Management, 31(2), pp.477-488.

trademinister.gov.au. (2018). The Hon Steven Ciobo MP. (2018). Department of Foreign Affairs and Trade. Retrieved 31 March 2018, from https://trademinister.gov.au/

Zopiatis, A., Constanti, P. and Theocharous, A.L., (2014). Job involvement, commitment, satisfaction and turnover: Evidence from hotel employees in Cyprus. Tourism Management, 41, pp.129-140.

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