HAT203 Hospitality And Tourism Management

Answer:

Operational issue

Operational issues are major issue faced by tourism and hospitality industry. Taxes and penalty rates are the operational issue faced by hospitality industry these days. According to various hotel owners, it is found that the cost of operation is increasing day by day that put adverse impact on the industry (Buyers, 2017). Near 71% of the hospitality industries reported that penalty rates are the major issue that hinder their business. Besides the penalty rates, hospitality industry faces charges and taxes that put burden on them.  As per the data founded in a report, Credit card is also a top issue faced by 48% of hospitality industry. All these issues increase the cost of operating hospitality industry. Due to environmental and climatic changes, the planning of these industries affects (Williams and Baláž, 2015). Due to these changes, it affects the operations of these industries. Recently it is founded that climatic changes in Europe putting serious impact on the physical resources of tourism industry.

Human resource issues 

Human resource is an important part of every industry. In every business environment, the growth of the business depends on the working of its staff members. Due to this reason only, employees are termed as most valuable asset of any organisation. The major challenge that hospitality industry now a days facing is hiring the best staff. Hiring the efficient and skilled staff is a major challenge faced by 54% of the hospitality businesses mangers as well as owners (Baum, 2015).  It is important for these industries to find skilled staff because a bad or slow service in hospitality industry results into loss of revenue. In the tourism industry, the main issue in human resource is recruitment and retention of potential and skilled person. In today’s tourism industry, it is required to hire potential person who have the knowledge of different cultural background (Smith, 2014). The job of the employee in tourism industry is of traveling and guidance that sometimes person get frustrated. In this case, retention becomes the major issue in tourism industry.

Product and market issue 

Satisfaction of customers is the most important things any business, it is rightly said that “success of any business on the customers.” However, there satisfaction is necessary for continuous growth of industry. In a survey report, it is highlighted that changing habits of customers affecting the hospitality industry these days (Grobelna, 2015). It is founded that hospitality industry affects due to the changing needs and taste of different culture. Recent days, customer want best quality services at minimum cost that results in increasing cost of   hospitality industries (Bilgihan and Nejad, 2015). Besides this issue, hospitality industries are facing the issues regarding technological changes. Therefore, it is required by the hospitality industries to anticipate the customer’s need and update the marketing approach. In updating the marketing approaches, it requires by the industry to spend so much of amount in research. Same as hospitality industry, tourism industry is also facing issue regarding changing customer preferences.

Financial issues 

Finance is one of the major success factors of any industry. Hospitality industry requires huge capital to set up its business in any country. Besides the initial capital, industry has to spend so many amounts on the promotion and advertisement. All these issues are increasing the cost of hospitality industry that affects the revenue. During the peak season, tourism industry enjoy the fruitful situation as there is pool of tourists come for enjoy the vacations. During the peak season, tourist does not come for vacations in the concerned area or only few people come (Georgetown, 2018).  At this time, the return of investment of industry is low due to which industry sometimes suffers loss. At this time, these tourism industries have to offer discounts so that customers get attracted toward their services. Therefore, it increases the cost of tourism industry sometimes. These issues are the current issues that hamper the growth of these industries (Wang, et al., 2015  

Conclusion 

From the above report, it is concluded that in recent times although the tourism and hospitality industry is booming, but besides this, it is facing several issues regarding the finance and management of human resource in the industry. Due to decline in customers in lean season, it does not able to manage the finance sometimes. In addition, there is lack of skilled staff, due to which it is facing several complaints from the customers.

References

Baum, T (2015) Human resources in tourism: Still waiting for change?–A 2015 reprise. Tourism Management, 50, pp.204-212.

Bilgihan, A. and Nejad, M. (2015) Innovation in hospitality and tourism industries. Journal of hospitality and Tourism Technology, 6(3).

Buyers, L. (2017) Major issues facing the Hospitality industry. [online] Available from: https://impos.com.au/blog/hospitality-issues-2017/ [accessed 16/08/18].

Georgetown. (2018) Booming Hospitality Industry Faces Big Challenges in 2018. [online] Available from: https://scs.georgetown.edu/news-and-events/article/7056/booming-hospitality-industry-faces-big-challenges-2018 [accessed 17/08/18].

Grobelna, A. (2015) Intercultural challenges facing the hospitality industry. Implications for education and hospitality management. Journal of Intercultural Management, 7(3), pp.101-117.

Smith, S.L. (2014) Tourism analysis: A handbook. United Kingdom:Routledge.

Wang, X.L., Yoonjoung Heo, C., Schwartz, Z., Legohérel, P. and Specklin, F. (2015) Revenue management: Progress, challenges, and research prospects. Journal of Travel & Tourism Marketing, 32(7), pp.797-811.

Williams, A.M. and Baláž, V. (2015) Tourism risk and uncertainty: Theoretical reflections. Journal of Travel Research, 54(3), pp.271-287.