future development and career opportunities in international hospitality foodservice and hotel management

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Chapter 14

Prospects and Opportunities

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WORLD TOURISM IN THE TWENTY-FIRST CENTURY

  • Travel and tourism will become the world’s largest industry in the twenty-first century.
  • According to a World Tourism Organization report, 1.6 billion tourists will be visiting foreign countries annually by the year 2020, spending more than $2 trillion per year.

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WORLD TOURISM IN THE TWENTY-FIRST CENTURY (Cont’d)

  • As Exhibit 14.2 shows, the world travel and tourism industry will create one new job across the global economy every 2.4 seconds.
  • A substantial part of the investment increase will be attributed to the rapid expansion of the global hospitality industry in the areas of building new hotels and restaurants in foreign countries.

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FORCES SHAPING THE HOTEL INDUSTRY’S FUTURE

  • Five major forces that are driving changes in the hospitality industry well into the next decade.

  • These five forces are: capacity control, safety and security, assets and capital, technology, and new management.

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Capacity Control

  • Capacity refers to the inventory of hotel products, that is, the supply of products and services.

  • Traditionally, the sale of room inventories is controlled by hospitality operators through taking reservations or receiving guests who walk into the hotel for lodging accommodations. Therefore, hoteliers have direct control over the sales and distribution of hotel rooms.

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Capacity Control (Cont’d)

  • However, as discussed in Chapter 12, the emergence of electronic information technology exerts great influence on who will control inventory.
  • The development of electronic reservation systems enables individual travelers to directly reserve hotel rooms from anyplace in the world at any time.

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Safety and Security

  • Travelers’ choice of destinations is greatly influenced by safety and security issues.
  • Travel safety and security issues can be analyzed from both a macro and micro perspective.

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Safety and Security (Cont’d)

  • At the macro level, the most significant concern is the impact of terrorism on international travel and tourism.

  • Another major safety issue is health concerns. Potential tourists are increasingly concerned with the spread of AIDS and Hepatitis B in many parts of the world.

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Safety and Security (Cont’d)

  • At the micro level, guests’ concerns must be handled by individual hotels.

  • As for health concerns, hotel management must take effective measures in food and water handling, employee hygiene, keeping the grounds clean, and properly handling waste disposal.

  • Guest safety must always be the priority of hotel management operations.

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Assets and Capital

  • International companies compete aggressively for whatever capital is available.
  • Therefore, hospitality companies have to compete not only with direct competitors for capital, but also with other business, such as real restate development, office rentals, and so on.

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Technology

  • Technology is the driving force that shapes the way firms conduct business globally. It will give hospitality firms significant competitive advantage in information management, customer services, hotel designs, creating alternatives to present products and services, and marketing promotions.

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Technology (Cont’d)

  • Technology is now widely used in designing and creating the so-called smart hotel room, which is designed to satisfy every need of the guest.

  • Systems are designed to control temperature, air purity, lights, and sound. These functions are controlled by computer sensors that provide maximum guest comfort at minimum cost.

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Technology (Cont’d)

  • Communication ports in guest rooms are essential now for connecting international business travelers to the outside world.
  • Hotel companies that offer such amenities and provide room design adjustments for the business information needs of the guest will have significant competitive advantage in attracting international business travelers.

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Technology (Cont’d)

  • Therefore, hospitality firms need to enhance tourists’ travel experience by investing in technology development, both in hardware and software ― and managers who are technologically competent.

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FOOD SERVICE EXPANSION

  • U.S. food service firms will continue to take advantage of business opportunities around the world.

  • Many foreign food service firms are also aggressively expanding in the United States.

  • Chi-chi’s Mexican restaurants

  • Yoshinoya

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THE GLOBAL HOSPITALITY MANAGER

  • Global expansion of hospitality operations has increasingly become a strategic development for many firms.
  • The rapid global development has created a demand from the hospitality industry for competent and qualified global managers.

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THE GLOBAL HOSPITALITY MANAGER (Cont’d)

  • How can one become a competent global manager? One needs to be proficient in management skills and an effective leader in managing cultural diversity.

  • In essence, the education of future global managers requires a transdisciplinary approach.

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THE GLOBAL HOSPITALITY MANAGER (Cont’d)

  • One study on global hospitality management education has suggested a tripartite approach for educating global hospitality managers.
  • The tripartite approach consists of

three complex components: geographic,

sociocultural, and business dimensions

of international hospitality markets.

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THE GLOBAL HOSPITALITY MANAGER (Cont’d)

  • Students who are interested in pursuing a career in global hospitality management also need to learn the three components of knowledge through hands-on working, traveling, or living experience in foreign countries.

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THE GLOBAL HOSPITALITY MANAGER (Cont’d)

  • Club Med and Pacific Resort Club offer internships to hospitality management students.
  • Many hospitality management programs offer study-abroad programs to enhance students’ international travel and living experience.
  • Some schools have also developed joint bachelors’ and master’s degrees in international hospitality management, such as the joint program between the University of Massachusetts and Hotel Consult SHCC college in Brig, Switzerland.

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THE GLOBAL HOSPITALITY MANAGER (Cont’d)

  • The National Restaurant Association in the United States is a very influential trade association that represents the entire food service industry.

  • It closely monitors current international expansions and identifies new development trends through the survey of international restaurant operations.

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THE GLOBAL HOSPITALITY MANAGER (Cont’d)

  • Hotels has organized a prestigious club for global hotel managers: the Global Hotelier Club. One of the qualifications for joining this club is that you must have served in hotel management on three different continents.
  • Their perspectives and experience are periodically published in Hotels.

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GOING INTERNATIONAL

  • This textbook has led you through the complicated aspects of hospitality development and operations in an international context.
  • As the global tourism industry continues to grow in the twenty-first century, the hospitality industry will follow international tourists wherever they travel to serve their needs and wants.

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GOING INTERNATIONAL (Cont’d)

  • This increased global expansion of the hospitality industry creates a demand for competent global managers to manage overseas operations.

  • Opportunities abound for those who are interested in international operations. There is great potential for career development, advancement, and personal growth in international hospitality management.

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GOING INTERNATIONAL (Cont’d)

Go Global!!!

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