essay about tourism and hospitality industry

• Hospitality Industry

What is the hospitality industry? All your questions answered

March 28, 2024 •

20 min reading

The hospitality industry is a large subsection within the service industry and is comprised of four main areas : Food & beverage, travel & tourism, lodging, and recreation. As examples, the F&B category includes restaurants, bars, and food trucks; travel & tourism covers different forms of transportation and travel agencies; lodging varies from hotel resorts to hostels; recreation refers to leisure activities such as sports, wellness, and entertainment. While all sectors are interconnected and reliant on each other, many of these hospitality sectors are quickly evolving due to new technologies and changing customer mindsets.

Known for being one of the main industries that is easily impacted by external forces, many questions have recently come up regarding the state of hospitality today. What trends are shaping its future? What makes it still one of the world's fastest-growing industries? How can it remain competitive? How to deal with the post-Covid staff shortages?

Read on to find out the experts' guide on what is happening in this exciting, evolving, and resilient sector.

A brief history of hospitality

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Derived from the latin word “hospes”, meaning host (one who provides lodging or entertainment for a guest or visitor), hospitality has its roots in ancient history. The ancient Greeks used the word "xenia" to define the sacred rule of hospitality: the generosity and courtesy shown to those who are far from home or associates of the person bestowing guest-friendship. Away from home, surrounded by strangers and yet feeling welcome.

Although the original concept of hospitality has remained largely unchanged since its origins (meeting travelers’ basic needs such as providing food and accommodation), the idea of building hotels for the sole purpose of hosting guests emerged alongside technological advances and better means of transportation towards the end of the 18th century. Since then, the sector been in constant expansion due to the very concept of hospitality being applicable to any sector that deals with customer service and satisfaction.

Along with the overall economy, the global hospitality industry has enjoyed a spurt of massive growth over the last decade since the end of the financial crisis. According to the World Bank , the global economy has grown at a pace of more than three percent per year up until the global pandemic hit in 2019/20. Due to pent up demand during the beginning of the COVID-19 pandemic there was an acceleration of the global economy in 2021 of 5.5 percent growth, however it is set to decelerate to 4.1 percent in 2022 and 3.2 percent in 2023, arriving back at pre-pandemic levels.

This unprecedented expansion over the last decade has benefited the hospitality and tourism industry by stimulating the world population’s travel activity, adding countless room nights in both leisure and business travel .

1. International arrivals have increased from 900 million to more than 1.3 billion over a span of just ten years.

Not only has this boosted the number of rooms on offer, but has also led to a major contribution of global employment opportunities. Covid-19 had a severe impact and international tourist arrivals according to figures from UNTWO , which after years of steady annual growth saw a staggering -73% drop in arrivals in 2020 and -71% in 2021 due to travel restrictions in response to Covid-19.

All in all 2020 is recognized as the worst year in tourism history with 1 billion fewer international arrivals and US $ 1.1 trillion in international tourism receipts. Around -74% drop according to the latest data from World Tourism Organization (UNWTO) a level of 30 years ago.

However, so far the travel industry has seen an extremely positive bounce back. New data from UNTWO found that, overall, international arrivals reached 80% of pre-pandemic levels; in the first quarter of 2023.

Tourism figures are heading in the right direction as an estimated 235 million tourists traveled internationally in the first three months, more than double the same period of 2022.

2. The World Travel and Tourism Council ( WTTC ) names the hospitality industry’s importance as a main driver in global value creation.

Recent figures published by the WTTC found that in 2022 the Travel & Tourism sector made a contribution of 7.trillion USD to the global economy, 7.6% of the global GDP and 23% below pre-pandemic levels.

3. The hospitality and travel industry accounts for one out of every ten employment opportunities.

Bringing the number of people earning their living in the sector to a remarkable 330 million in 2022.

In 2022, there were 22 million new jobs, representing a 7.9% increase on 2021, and only 11.4% below 2019.

The rise in revenue does not only benefit international companies and hotel owners, but also acts as a major factor in job creation for local populations and destinations. As of the latest data, around 173 million people were employed in the hotel and motel industry before the Covid-19 pandemic hit.

The WTTC forecast that there will be an additional 126 million jobs created between now and 2032.

4. The overall growth in the travel and tourism industry stands at +5.8% Vs. Overall GDP +2.7%.

According to the Hospitality Global Market Report 2023 the global hospitality marketgrew from $4,390.59 billion in 2022 to $4,699.57 billion in 2023 at a compound annual growth rate (CAGR) of 7.0%.

This large growth rate is in part the bounce back from global restrictions on travel. The market is expected to continue growing but at a slower rate due to the global economic situation with a Compound Annual Growth Rate (GAGR) of +5,8% forecasted between 2022 and 2032.

Image source: World Travel & Tourism Council, Travel & Tourism Economic Impact 2022

1. The global economy growth has created positive momentum in the sector by contributing to the overall income per capita.

Since 2009, the global GDP has constantly increased at an average pace of almost two percent per annum, leading to a growing demand for both international and domestic travel spending. Whilst the Covid-19 pandemic led to a shock -2.81% decline in GDP in 2020 according to Statista , 2022 figures and subsequent projections for 2023 show year-on-year growth.

2. Airfares have consistently become more affordable over the last three decades, but will this last?

Thanks to lower fuel prices, carrier competition and the rise of low-cost airlines . While these are not happy news for the airline industry, which is using ancillary fees to increase profit margins, it benefits travelers who can get more from their purchasing power. However the emerging global energy crisis could put a halt to such a trend and airlines could pass on the price hikes to the consumer, which will in turn impact consumer travel behaviour.

3. Corporate travel is yet another contributor to the healthy outlook and is projected to keep growing.

In China and India, the growth of business travel is particularly steep due to the relentless pace of economic expansion in this part of the world.

4. The health and wellness segment has boomed in recent years.

There has never been so much appetite among the public for wellness and the escapism travel can offer from life’s stresses - the pandemic taught us to slow down and not to take our health for granted.

The global consumer health and wellness market is a $1.5 trillion market growing at 5 to 10 percent a year, and, according to a recent McKinsey survey, people around the world are increasingly interested in taking care of themselves and are planning to spend more money on wellness products and services.

5. Hotel operators are seeking to expand their portfolios through targeted acquisitions of smaller regional chains.

Mergers and Acquisitions activity in hospitality has somewhat cooled over the last few years , with operators seeking to expand business in a more controlled way.

1. The threat of climate change

The threat of climate change will adversely impact many major tourist destinations. Threats resulting from climate change, safety and security issues, as well as unprecedented migration streams are tomorrow’s game changers. The main challenges for the hospitality industry are the lack of predictability and the magnitude of such events – and how fast the industry can react and adapt. Hybrid operations might be one of the hospitality 4ndustry’s possible responses to increased risks.

2. Industry consolidation

Corporate consolidation has led to increasing concentration of size and power among the top players. Hotel operators will seek to expand their portfolios through targeted acquisitions of smaller regional chains. While the ultimate goal is to create value through cross-organizational synergies, this development also comes with downsides, as the management of structures with a diverse selection of geographies and a plethora of brands generates more complexity and threatens to increase overall rigidity.

Marriott and Hilton remain the world’s most valuable hospitality brands, valued in 2023 at $53.5B and $37.99B respectively.

3. New competition from tech and digital players

Are major technology firms such as Google or Facebook threatening to replace hotel brands by offering technological solutions and creating novel markets to attract new types of customers? Thanks to their control over all types of data related to customer behavior both off- and online, tech behemoths could oust traditional incumbents into niche markets. Companies that fail to identify their niche are at risk of becoming mere revenue generators for technology companies. Some big enough brands may survive, but their business will get tougher .

4. Skilled talent shortage

As the accommodation and restaurant industry is creating jobs at the fastest rate of any sector in the economy according to the International Labor Organization, fuelling this growth with the right skilled labor is yet another concern for owners. Attracting and retaining younger generations of hospitality professionals will require a lot of flexibility and attention from hoteliers in the future.

5. Energy crisis

The global energy crisis is the perfect storm of multiple factors causing a huge surge in energy demand which the limited global resources are struggling to fulfil. Added to this is Russia’s invasion of Ukraine, one of the main suppliers to Europe. Whilst the world grapples with accelerating the development of green infrastructure, the hospitality industry has an even bigger incentive to make efforts to switch to renewable energy sources where possible, not only as our environmental social responsibility but also to reduce the reliance on particular states which fuels the weaponization of energy.

6. Supply chain issues

Supply chain issues have affected most of the world, although Europe was the hardest hit, according to data from the 2022 State of the Third-Party Logistics Industry Report by Extensiv.

These issues are ongoing and are triggered by undulating demand, price volatility and uncertainty. The hospitality industry is affected on an operational level when bottlenecks cause delays on delivering food & drink, bed linen, housekeeping products and other replenishable goods. Running out of these items means giving customers a disappointing experience and leaving a poor impression that could diminish the business’s reputation.

7. Economic downturn

According to the UNWTO Panel of Experts , the economic situation remains the main factor weighing on the effective recovery of international tourism in 2023, with high inflation and rising oil prices translating into higher transport and accommodation costs. As a result, tourists are expected to increasingly seek value for money and travel closer to home.

Is there a silver lining? Well, we know that economic downturns make way for innovation and entrepreneurship ! The public needs new solutions for new problems, so now may just be the time to start thinking of your next business venture.

Travelers' expectations have greatly evolved especially now that technology is taking center stage in every area of guest experience. As 2024 progresses, hospitality professionals are gearing up to leverage various innovations and strategies that promise to reshape customer satisfaction and industry standards. Here are hospitality trends 2024 elevating guest satisfaction and driving business growth.

1. Towards sustainable travel

The reasons we desire to travel are many and include experiencing the beautiful things the world has to offer, meeting new people, supporting local culture, etc. In fact, more than 33,000 travelers across 35 countries and territories have been surveyed in Booking.com's Sustainable Travel Report 2023 . 76% of global travelers say they want to travel sustainably over the next 12 months.

Ecotourism is all about intentionally organising travel plans in a way that doesn't harm the environment. Thankfully, sustainability is a major driving force in the hospitality industry, with hotels and restaurants welcoming eco-friendly initiatives to minimize their environmental footprint.

A growing number of hotels are rising to the challenge of running a sustainable business. Beyond plastic usage , general waste production, food waste, usage of local produce, energy and water consumption, and many other factors are to be considered for operators that are serious about their claim. Going one step further, the term sustainability is also often used not only for environmental protection but also corporations’ approach to managing their people and their finances. All across the board, resources of all kinds are being used more efficiently in the hospitality industry and while various strategies are being adopted by hotels, a paradigm shift is becoming more recognizable.

From implementing energy-efficient technologies to sourcing locally produced ingredients, businesses are prioritizing sustainability to appeal to eco-conscious travelers—which is echoed in the next point.

2. Wellness for holistic hospitality

A lot of guests today are looking for experiences that promote physical and mental well-being. Hotels that have embraced wellness travel can now cater to this demand by offering activities like yoga retreats, on-site spa treatments , fitness centers with cutting-edge equipment, and healthy dining options.

Creating a relaxing and stress-free environment through thought-out design elements can contribute to a holistic wellness encounter. Travelers return from their trip feeling refreshed, rejuvenated, and ready to take on their day-to-day life.

The wellness tourism market is projected to reach well over $1,700 billion, in accordance with Precedence Research . Even so, investing in the health niche is beneficial for guests and financially rewarding for businesses.

3. Enhanced experiences with advanced technology

The integration of artificial intelligence and other technologies is reshaping the hospitality industry. AI-powered chatbots are being employed for personalized customer service to provide instant assistance and support to guests throughout their stay. Whether it's answering inquiries, making reservations, or addressing issues, chatbots offer convenience for both guests and staff.

On the other hand, predictive analytics algorithms help with demand forecasting and pricing optimization. AI is gaining traction in the hospitality industry because of its enhanced data analytics of consumer behavior patterns and improved ability to meet client demands. Data-driven personalization enables hotels to tailor offerings and marketing messages to individual guest preferences.

Global Market Estimates predict that between 2021 and 2026, the niche will rise at a compound annual growth rate (CAGR) of approximately 10%. Robots are also making inroads into the hospitality industry in automating housekeeping tasks, food delivery, and concierge services. While robots cannot replace humans entirely, they free up hotel staff to focus on higher-level guest relations and contribute to operational efficiency.

Why contactless technology?

Contactless technology has become essential since the COVID-19 pandemic as a way to offer guests a safer, more convenient experience. These systems allow users to network with devices or complete transactions without physical contact, often achieved through short-range wireless communication, like tapping your phone to pay at a store.

Mobile check-in/out, digital room keys, and touchless payment options are now standard in most, if not all big hotel chains. This trend is expected to persist beyond 2024 as businesses prioritize contactless solutions to not only minimize the spread of germs but also meet a growing consumer preference for minimal physical contact.

Immersive virtual reality experiences

Hotels are using Virtual Reality or VR to offer immersive virtual tours so guests can preview accommodations and amenities before booking. While virtual reality offers the ultimate virtual experience, guest relations managers appreciate accessibility concerns.

For those without VR headsets, 360° videos provide a panoramic view of hotel space with just a phone or computer. Interactive floor plans also let you virtually walk through the hotel for a solid understanding of the layout. This has completely changed the way guests explore and engage with hospitality offerings.

VR-enhanced experiences, such as virtual city tours or immersive dining experiences create memorable moments for guests, too. VR technology will become more accessible in the future; therefore, its adoption in hospitality is a no-brainer.

Make each customer feel special with personalization

The global leader in employee and customer experience, Medallia Research Inc. , reports that 61% of consumers are willing to pay more for hyper-personalized experiences. Guests crave guest-centric services that cater to their every whim. This is not just about remembering names but also using guest data to anticipate preferences and offer tailored services .

Information can include previous booking history, preferred room types, special requests, dietary restrictions, leisure activities, and feedback from past stays. With collated information, hospitality teams can customize everything from room amenities to dining recommendations to boost guest satisfaction and loyalty.

Embracing experiential tourism

If you've been bitten by the travel bug and want something extraordinary, you should definitely consider experiential travel. The idea behind this travel concept is to forge a deeper connection with a given destination than can usually be had from traditional leisure holidays so guests experience it as authentically as possible.

These often involve an element of adventure, whether cultural, culinary, or spiritual; as such, tours mainly focus on less "touristy spots." For instance, after the pandemic, family ski vacations to Japan are preferable compared traditional choices like Aspen or Canada. Add-on experiences such as samurai sword-fighting or temple tours add an extra dimension to the travel experience.

Experiential tourism is now high on nearly every traveler's wish list because trips aren't restricted to international pursuits. This trend presents an opportunity for hotels to partner with local businesses and offer unique experiences like cooking classes, cultural excursions, and outdoor adventures. Such offerings create memorable and enriching guest experiences.

Integrating storytelling marketing

As the name suggests, storytelling marketing is a powerful tool for captivating audiences and creating emotional connections with brands. Hospitality businesses are now crafting authentic narratives to showcase their unique offerings, heritage, and values to resonate with guests on a deeper level. This type of marketing can also set the stage for experiential travel by providing context and inspiration for visitors.

Through captivating narratives, travelers can visualize themselves in the destination, immersing themselves in its culture, history, and natural beauty. Storytelling paints a vivid picture of the travel experience enough to spark curiosity and ignite wanderlust among potential travelers. When utilized properly, hotels and restaurants can differentiate themselves from their competitors and boost brand loyalty.

Technology integration for advanced data security

Data breaches can be devastating. Guests entrust hotels with sensitive personal information and as the hospitality industry becomes increasingly reliant on technology, data security is crucial. Hotels must implement robust cybersecurity measures to protect guest data and maintain trust.

This is where technology integration comes in; from cloud-based property management systems to smart room automation. It can ensure data security by implementing advanced encryption protocols and access controls across all integrated systems, safeguarding guest information from unauthorized access or breaches.

Further, continuous monitoring and regular updates of integrated technology systems can help detect and mitigate potential security threats. Embracing innovative technologies and staying abreast of industry trends can future-proof hotel business operations and boost guests' trust.

Commitment to net positivity

Sustainability is no longer a niche concern; it's an expectation for many travelers. Hotels that prioritize green practices like energy efficiency, water conservation, and local sourcing reduce their environmental footprint besides appealing to eco-conscious guests. The industry is moving beyond simply being sustainable to aiming for net positivity, with regenerative tourism that gives back to the environment.

Management with a vision

None of the discussed hospitality trends 2024 are possible without effective management. Leadership in the hotel industry requires a clear vision for the future, an ability to adapt to changing trends, and a commitment to continuous improvement. Hospitality leaders must invest in their own development and the teams they lead can ensure their businesses remain competitive and thrive in the years to come.

As an industry that depends on a stable environment in order to successfully operate - societal and environmental changes are having a greater impact on hospitality businesses compared to other industries. A recent global survey among CEOs by PwC has shown that heads of hospitality and leisure companies are notably less confident about their companies’ prospects for revenue growth in the near future than their counterparts in other sectors.

With disruptors in the industry, a wave of consolidation, and many external factors impacting their operations, hotel operators must find new ways to overcome these hurdles. Solutions to future challenges that companies are currently coming up with are the result of new thinking among the world’s business leaders and CEOs.

In a crowded field of competitors, hotels must find ways to distinguish themselves and position their property as distinctive destinations for customers , to develop preferences and loyalty in order to drive direct bookings. To do so, hotels must offer more highly personalized experiences that anticipate and go beyond the needs of their target customers – and count on word of mouth and allegiance to not only retain their customer base, but also grow it with more potential customers.

We have been a super good hospitality group for the last 50 years. We are not shying away from it. We are shifting and expanding the hospitality notion to Augmented Hospitality. We are being even more audacious and going one step further by saying: Since people want to be recognized, want to have something extremely personalized, why don't we try going from Augmented Hospitality to a Lifestyle Augmented Hospitality player? Sébastien Bazin, Chairman and CEO of Accor (Source: Accor TV - New Accor Strategy).

Other ways that are often discussed when dealing with the impending changes are the implementation of new technologies, training employees to move away from standard SOPs to become true high-touch experience providers and modernizing the service offering towards individualization and “lifestyle” to create true differentiation.

Fully take advantage of technology and personalization to create experiences

A generational shift towards how travelers are consuming hospitality services is making hotels evolve from being mere suppliers of accommodation to experience providers, leading to a need for outstanding customer relationships across all stages of their customer booking journeys .

Focus on talent acquisition and retention

From targeted recruitment efforts to a meaningful interview process and to the actual hiring and onboarding, organizations that are well-equipped to recruit in the era of millennials think holistically about the overall experience delivered to potential hires .

Embrace sustainability as part of your business model

As a result, a growing number of international hotel companies have developed sustainability and corporate social responsibility strategies . These initiatives can be perceived as the beginning of a paradigm shift toward a more positive and conscious form of hospitality which is highly valued among consumers today.

Reshaping the future of hospitality jobs

Over the past two decades, the hospitality industry has experienced significant growth, with international arrivals doubling from 600 million to over 1.4 billion in 2016 .

In 2023 however, in the wake of the global pandemic and facing increasing economic uncertainty hospitality has shown that it is resilient and a sector that consumers are just not willing forego entirely. Travel and tourism is an integral part of our lives therefore even as the global economy retracts the industry will always bounce back. This ability to withstand difficult times makes it a viable sector to launch a career for anyone with a hospitality mindset and appreciation for top-level service, culture, and leisure experiences.

It's clear that the industry is evolving and adapting all the time, making it a fantastic career opportunity for the problem solvers and innovators of tomorrow. Hospitality Management will provide a career rich in experiences, human connection, personal development and comes with many perks.

Employers across the board are looking for professionals with a combination of both hard and soft skills . In hospitality, developing skills such as cultural awareness, multitasking, customer service and communications is paramount to effectively deliver outstanding customer experiences.

The increasing complexity of the hospitality sector and evolution of its modus operandi - due to the expanded use of technology and data, the evolution of business models with the separation of management from operations or the ever-increasing trend of brands becoming publishers - is leading to the creation of new job profiles , such as asset managers, data scientists or content marketing specialists.

The Covid-19 crisis has underlined the global importance of the travel and tourism industry economically as well as its interconnection with other industries. From small tour operators to multinational hotel chains and major airlines, everyone in the industry has been impacted and continue to reset and recover.

To every negative repercussions of a crisis there is also some positive change that could be foreseen for the future. The World Economic Forum’s recent “Rebuilding Travel and Tourism panel” at the “Sustainable Development Impact Summit” explored the intersection of consumer consciousness, acceleration of technology and destination management and found some solutions that could have the potential to reshape the way we market, manage and plan our travel:

• Travelers are becoming more impact-conscious
• Tourists are looking for experiences in nature
• Digital solutions are improving sustainability
• Long-term progress requires cooperation

The end result is in an industry that will recover as it is an essential part of modern human lives that derive much pleasure and discovery from it. It is simultaneously undergoing huge digital transformation and other shifts to adapt to consumer sentiment, therefore a career in hospitality won't necessarily be a quiet one, but it will be an exciting adventure with a multitude of possible career paths to explore.

Keep reading

AI in hospitality: Creating personalized customer experience

Sep 06, 2024

Dynamic pricing: Maximizing revenue in the hotel industry

Sep 05, 2024

Hotel Employee Training Impacts Customer Experience and Happiness

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Chapter 1. History and Overview

1.5 Impacts of Tourism

As you can already see, the impacts of the global tourism industry today are impressive and far reaching. Let’s have a closer look at some of these outcomes.

Tourism Impacts

Tourism can generate positive or negative impacts under three main categories: economic, social, and environmental. These impacts are analyzed using data gathered by businesses, governments, and industry organizations.

Economic Impacts

According to the 2019 edition of the UNWTO International Tourism Highlights report , international tourist arrivals reached 1.4 billion, a 5% increase in 2018. UNWTO Secretary-General Zurab Pololikashvili stated that the sheer growth of the industry was driven by a strong global economy, surge of the travel-ready middle class from emerging economies, technological advances, and more affordable travel costs among others (UNWTO, 2019). At the same time, the UNWTO (2019) reported export earnings from tourism, or the sum of international tourism receipts and passenger transport, reached a staggering USD 1.7 trillion. This demonstrates that the industry is a major economic engine of growth and development.

Europe has traditionally been the region with the highest tourism dollar spending with USD 570 billion, followed by Asia and the Pacific (USD 435 billion), the Americas (USD 334 billion), Middle East (USD 73 billion), and Africa (USD 38 billion). Asia has shown to have the strongest growths in both arrivals (+7%) and spending (+7%). Africa equally shared a +7% growth in arrivals, suggesting a new interest in travelling to the continent.

What are the trends that are motivating people to travel? The six consumer travel trends, according to the UNWTO (2019) include:

• Travel “to change” or focusing on more authentic travel, transformation, and living like a local.
• Travel “to show” or capturing “instagramable” moments, experiences, and visiting selfie-worthy destinations.
• Pursuit of a healthy life or engaging into active travel that involves walking, wellness, and sports tourism.
• Rise of the “access” economy.
• Solo travel and multigenerational travel as a result of single households and an aging population.
• Rising awareness on travel with sustainable advocacies, thoughtful consideration about climate change impacts, and plastic-free travel.

Social Impacts

Because tourism experiences also involve human interaction, certain impacts may occur. Generally, social impacts in tourism are related to guest-to-host or host-to-guest influences and changes. Studies of these encounters often relate to the Social Exchange Theory, which describe how tourists and hosts’ behaviours change as a result of the perceived benefits and threats they create during interaction (Nunkoo, 2015).

Positive social impacts in tourism include learning about different cultures, increasing tolerance and inclusion through LGBTQ+ travel, increasing amenities (e.g., parks, recreation facilities), investment in arts and culture, celebration of Indigenous peoples , and community pride. When developed conscientiously, tourism can, and does, contribute to a positive quality of life for residents and a deeper learning and appreciation for tourists.

Unfortunately, tourism also has its shortcomings and is culpable for some detrimental impacts. However, as identified by the United Nations Environment Programme (UNEP, 2003a), negative social impacts of tourism can include:

• Change or loss of indigenous identity and values
• Culture clashes
• Physical causes of social stress (increased demand for resources)
• Ethical issues (such as an increase in sex tourism or the exploitation of child workers)

Some of these issues are explored in further detail in Chapter 12 , which examines the development of Indigenous tourism in British Columbia.

Environmental Impacts

Tourism relies on, and greatly impacts, the natural environment in which it operates. In many cases, the environment is an essential resource that outdoor recreation and ecotourism cannot exist without. Even though many areas of the world are conserved in the form of parks and protected areas, tourism development can still have severe negative impacts from misuse, overuse, and neglect. According to UNEP (2003b), these can include:

• Depletion of natural resources (water, forests, etc.)
• Pollution (air pollution, noise, sewage, waste and littering)
• Physical impacts (construction activities, marina development, trampling, loss of biodiversity)

The environmental impacts of tourism knows no boundaries and can reach outside local areas and have detrimental effects on the global ecosystem. One example is increased emissions from necessary tourism elements such as transportation. Air travel for instance, is a major contributor to climate change. Chapter 10 looks at the environmental impacts of tourism in more detail.

A overview of the negative and positive impacts:

Whether positive or negative, tourism is a force for change around the world that is capable of transforming the environment from micro- to macro-scales at a staggering rate.

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The origins of tourism

Technology and the democratization of international tourism.

• Day-trippers and domestic tourism
• A case study: the beach holiday

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tourism , the act and process of spending time away from home in pursuit of recreation, relaxation, and pleasure, while making use of the commercial provision of services. As such, tourism is a product of modern social arrangements, beginning in western Europe in the 17th century, although it has antecedents in Classical antiquity .

Tourism is distinguished from exploration in that tourists follow a “beaten path,” benefit from established systems of provision, and, as befits pleasure-seekers, are generally insulated from difficulty, danger, and embarrassment. Tourism, however, overlaps with other activities, interests, and processes, including, for example, pilgrimage . This gives rise to shared categories, such as “business tourism,” “sports tourism,” and “ medical tourism ” (international travel undertaken for the purpose of receiving medical care).

By the early 21st century, international tourism had become one of the world’s most important economic activities, and its impact was becoming increasingly apparent from the Arctic to Antarctica . The history of tourism is therefore of great interest and importance. That history begins long before the coinage of the word tourist at the end of the 18th century. In the Western tradition, organized travel with supporting infrastructure , sightseeing, and an emphasis on essential destinations and experiences can be found in ancient Greece and Rome , which can lay claim to the origins of both “heritage tourism” (aimed at the celebration and appreciation of historic sites of recognized cultural importance) and beach resorts. The Seven Wonders of the World became tourist sites for Greeks and Romans.

Pilgrimage offers similar antecedents, bringing Eastern civilizations into play. Its religious goals coexist with defined routes, commercial hospitality, and an admixture of curiosity, adventure, and enjoyment among the motives of the participants. Pilgrimage to the earliest Buddhist sites began more than 2,000 years ago, although it is hard to define a transition from the makeshift privations of small groups of monks to recognizably tourist practices. Pilgrimage to Mecca is of similar antiquity. The tourist status of the hajj is problematic given the number of casualties that—even in the 21st century—continued to be suffered on the journey through the desert. The thermal spa as a tourist destination—regardless of the pilgrimage associations with the site as a holy well or sacred spring—is not necessarily a European invention, despite deriving its English-language label from Spa , an early resort in what is now Belgium. The oldest Japanese onsen ( hot springs ) were catering to bathers from at least the 6th century. Tourism has been a global phenomenon from its origins.

Modern tourism is an increasingly intensive, commercially organized, business-oriented set of activities whose roots can be found in the industrial and postindustrial West. The aristocratic grand tour of cultural sites in France , Germany , and especially Italy—including those associated with Classical Roman tourism—had its roots in the 16th century. It grew rapidly, however, expanding its geographical range to embrace Alpine scenery during the second half of the 18th century, in the intervals between European wars. (If truth is historically the first casualty of war, tourism is the second, although it may subsequently incorporate pilgrimages to graves and battlefield sites and even, by the late 20th century, to concentration camps .) As part of the grand tour’s expansion, its exclusivity was undermined as the expanding commercial, professional, and industrial middle ranks joined the landowning and political classes in aspiring to gain access to this rite of passage for their sons. By the early 19th century, European journeys for health, leisure , and culture became common practice among the middle classes, and paths to the acquisition of cultural capital (that array of knowledge, experience, and polish that was necessary to mix in polite society) were smoothed by guidebooks, primers, the development of art and souvenir markets, and carefully calibrated transport and accommodation systems.

Transport innovation was an essential enabler of tourism’s spread and democratization and its ultimate globalization . Beginning in the mid-19th century, the steamship and the railway brought greater comfort and speed and cheaper travel, in part because fewer overnight and intermediate stops were needed. Above all else, these innovations allowed for reliable time-tabling, essential for those who were tied to the discipline of the calendar if not the clock. The gaps in accessibility to these transport systems were steadily closing in the later 19th century, while the empire of steam was becoming global. Railways promoted domestic as well as international tourism, including short visits to the coast, city , and countryside which might last less than a day but fell clearly into the “tourism” category. Rail travel also made grand tour destinations more widely accessible, reinforcing existing tourism flows while contributing to tensions and clashes between classes and cultures among the tourists. By the late 19th century, steam navigation and railways were opening tourist destinations from Lapland to New Zealand , and the latter opened the first dedicated national tourist office in 1901.

After World War II , governments became interested in tourism as an invisible import and as a tool of diplomacy , but prior to this time international travel agencies took the lead in easing the complexities of tourist journeys. The most famous of these agencies was Britain’s Thomas Cook and Son organization, whose operations spread from Europe and the Middle East across the globe in the late 19th century. The role played by other firms (including the British tour organizers Frame’s and Henry Gaze and Sons) has been less visible to 21st-century observers, not least because these agencies did not preserve their records, but they were equally important. Shipping lines also promoted international tourism from the late 19th century onward. From the Norwegian fjords to the Caribbean , the pleasure cruise was already becoming a distinctive tourist experience before World War I , and transatlantic companies competed for middle-class tourism during the 1920s and ’30s. Between the World Wars, affluent Americans journeyed by air and sea to a variety of destinations in the Caribbean and Latin America .

Tourism became even bigger business internationally in the latter half of the 20th century as air travel was progressively deregulated and decoupled from “flag carriers” (national airlines). The airborne package tour to sunny coastal destinations became the basis of an enormous annual migration from northern Europe to the Mediterranean before extending to a growing variety of long-haul destinations, including Asian markets in the Pacific, and eventually bringing postcommunist Russians and eastern Europeans to the Mediterranean. Similar traffic flows expanded from the United States to Mexico and the Caribbean. In each case these developments built on older rail-, road-, and sea-travel patterns. The earliest package tours to the Mediterranean were by motor coach (bus) during the 1930s and postwar years. It was not until the late 1970s that Mediterranean sun and sea vacations became popular among working-class families in northern Europe; the label “ mass tourism,” which is often applied to this phenomenon, is misleading. Such holidays were experienced in a variety of ways because tourists had choices, and the destination resorts varied widely in history, culture, architecture, and visitor mix. From the 1990s the growth of flexible international travel through the rise of budget airlines, notably easyJet and Ryanair in Europe, opened a new mix of destinations. Some of these were former Soviet-bloc locales such as Prague and Riga , which appealed to weekend and short-break European tourists who constructed their own itineraries in negotiation with local service providers, mediated through the airlines’ special deals. In international tourism, globalization has not been a one-way process; it has entailed negotiation between hosts and guests.

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Tourism vs. Hospitality – Decoding the Differences

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The hospitality and tourism industries are closely connected, but they are not the same thing. Though both connect to travel and leisure, these two industries have distinct differences that need to be understood if you are considering a degree or career in the field. By knowing how they are different, you can choose the right degree that will help you achieve your desired career path.

What is the Difference Between Tourism and Hospitality?

Hospitality is a field that focuses on providing accommodations to visitors at hospitality-related industries, such as hotels, motels, restaurants, cruise ships, country clubs, casinos, and convention centers, while tourism is focused on providing quality attractions and events in order to entice tourists to come.

For each of these fields to be successful, they focus on specific ways to keep people satisfied so they will return. Hospitality businesses must build strong relationships with their guests to not only prevent them from going to a competitor, but to keep them coming back. Many tourism businesses are classified as hospitality businesses as they must also have meaningful relationships, but they are more focused on traveling activities that may include heavy planning and marketing.

What are the Similarities Between Tourism and Hospitality?

Both the hospitality and tourism industries focus on serving people when they travel. These are highly competitive and always-changing fields that require people to be able to adapt to a changing market and work environment. Both tourism and hospitality professionals need to be good marketers to draw potential clients and customers to their industries.

What Jobs are there in the Travel and Tourism Industry?

The travel and tourism industry focuses on helping people plan and execute their travel arrangements. Some jobs in tourism management include:

Travel Agent

A travel agent is a great career path for people who majored in tourism. Travel agents work with their clients to plan their trips, so they must be highly organized and have a knowledge of the travel industry so they can book resorts, cruise ships, airline travel, and more for their clients.

Travel agents also assist clients with their travel budgets by calculating travel costs and helping clients choose trips and adventures that fit within their budget. They also can assist clients with getting their passports or other paperwork in order so they can legally travel.

The pay for a travel agent varies because they often earn commissions based on the trips and services they book, as well as the setting they work in. Travel agents can work independently or work with a travel agency, depending on the demand in their area.

Flight Attendant

A flight attendant works in an airline to help travelers get to their destination safely and comfortably. While travelers often see the simple work of the flight attendant, such as passing out snacks and collecting garbage, flight attendants are also trained on how to help protect passenger safety if something goes wrong.

Flight attendants need to be good at working with people, even those who are not in a good mood or who face frustration when they travel. One of the main benefits of this profession is getting to travel to and explore many destinations around the world.

The Bureau of Labor Statistics estimates that the demand for flight attendants will increase by 17% from 2019 to 2029, so it is a great time to pursue this career path.

What Jobs Are There in the Hospitality Industry?

Jobs within hotels, restaurants, and event centers tend to fall in the hospitality industry category. Hotel managers, event managers, hotel clerks, bar managers, and chefs are just a few examples in this industry, with details as follows:

Hotel Manager

A hotel manager makes sure that guests are comfortable during their stay in a hotel or resort. They may have to arrange for blankets or other amenities to be taken to hotel rooms, oversee the employees of the hotel, and ensure that supplies, like soap and shampoo, are ordered in a timely manner. On a resort property, the hotel manager may also be in charge of entertainment. The exact setting or location will dictate exact duties and responsibilities for this role. Overall, it is the manager’s job to handle customer service needs that pop up during a guest’s stay.

Event Manager

An event manager or event planner helps plan large events to ensure all attendees enjoy the experience. These individuals, like others in the hospitality industry, need to be highly organized. Event managers will plan all of the details, gather bids from venues and vendors, coordinate transportation for attendees, arrange for food, and even connect with local hotels to ensure people have a place to stay. They help their clients manage and maximize their budgets and ensure that everything is ready when the special event starts.

The BLS estimates that this career will grow 8% from 2019-2029, which is much faster than average. Approximately 10,800 new jobs will be created in this field, so it is a great time to consider pursuing a position in event management.

A concierge is employed by a resort or event center to help guests book entertainment and enjoy their stay more fully. These professionals need to know their local area well so they can connect guests to the entertainment options that best fit their tastes and desires for their trip.

Concierge professionals tend to be employed by high-end resorts and luxury hotels. Distinguished guests expect to have someone to help them book their services and are willing to tip well for this service.

Restaurant and Catering Professionals

The hospitality industry is also the industry that covers restaurants and catering services. While those interested in opening a restaurant or catering business will also need to explore food service training, training in hospitality will help them understand the customer service side of this industry. These professionals can work anywhere where food and beverage are prepared and served, including hotels, resorts, and restaurants.

Human Resource Management: Tourism and Hospitality Industry Essay

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Introduction

Tourism and hospitality industry, current hr practises, hrm within organisations, hard vs. soft, soft approach and competitive advantage, works cited.

The significance of tourism and hospitality jobs in both developed and developing nations is demonstrated by the World Travel and Tourism Council (WTTC), which recommends that tourism and hospitality-linked operations account for more than 250 million jobs or 8.8% of jobs worldwide. However, while the number of jobs is not questionable, the quality of majority of such positions is of enormous concern to professionals and decision-makers alike.

In spite of the rhetoric of decision-makers and corporate managers that people are the sector’s most critical asset, several remain doubtful that this perception is developed through pragmatic research. McGunnigle and Jameson identify the problems to live and work in a service sector which, according to them, is categorised by two types of hospitality careers: large group of low-talent, low-income careers and a lesser group of high-talent, high-pay careers, with a small number of careers being in the middle of such two extremes.

This paper focuses on tackling a number of the critical human resource (HR) concerns that must be addressed so that companies can retain this environment. To do so the paper will critically review a number of the issues which make people to portray tourism and hospitality job as generally dissatisfying and unpleasing, while as well taking into account examples of best practise, significant strategy reactions and theories of human resource management which may provide evidence for higher optimism in the manner individuals are organised within the tourism and hospitality sector in Australia.

To recognise the variety both of the diversity of sub-industries and kinds of careers the tourism and hospitality sector in Australia is likely to create, this paper cannot take into account all of these elements in detail. In fact, more is known regarding jobs in a number of sub-industries than others. For instance, the business-related hospitality sector including restaurants and bars, hotels, nightclubs and pubs is the biggest sub-industry with roughly 73% of workers in Australia.

Predictably, then, the business-related hospitality sector is well served with widespread studies about the type of jobs and human resource management approaches. In contrast, little has been studied about the service sector or the nature of human resource management in hospitality sector.

As a result many of the illustrations drawn on in this paper are from the business-related hospitality sector, even though, where possible, examples of managerial practise from service and hospitality companies are as well utilised. Finally, the key objective of the paper is that of attempting to understand the potentially varied job experience of people working in the so-called tourism and hospitality sectors.

Hence, how do the experiences of airline attendants vary from that of cooks in the kitchen in an emerging hotel to receptionists in the front desk of a global restaurant or to tour representatives working on a 24/7 shift? Within the Australia hospitality, holiday, travel and tourism industry 77% of organisations absorb less than 10 individuals and 52% less than 5.

Non-homogeneity is in addition viewed in association with the manner that companies utilise varying strategies to competitive advantage, dependent on which kind of market the organisations operate in.

For instance, commercial airlines in the airline sub-sector are likely to have extremely diverse approaches to human resource management in relation to low-cost carriers. The same is real for the service industry, which may vary from first class and luxury restaurants offering exaggerated 24/7 hour service to the more basic comforts of a bed and breakfast service; from fast food hotel to Michelin starred hotel.

In turn, the employment offered by such different companies demand an array of talents and features from those workers interacting with clients, which again will determine human resource approaches like staffing and selection and development.

The International Labour Organisation in their comprehensive study about the worldwide tourism and hospitality sector offers facts that imply that the sector internationally is greatly dependent on what Canny has described as alleged marginal employees like young employees, casual workers, women, students, and comparatively high percentages of migrant and part-time employees.

For instance, in Australia women represent approximately 59% of the broader hospitality and tourism labour force. More particularly, the tourism sub-industry is indicative of the broader industry in having a higher fraction of part-timers (53%) than most other sectors with the all sector fraction being 26%. young individuals are in addition prominent in the tourism and hospitality industry.

For instance, 38% of the total Australia labour force is below 25 years and 59% below 35 years. Associated with this last aspect an important component of the tourism and hospitality labour force comprises of student, part-time and migrant employees.

Students are an increasingly critical part of the employment market for tourism and hospitality companies. They are ready to work for low salaries and be flexible in their working trends, generating what Lindsay and McQuaid describe as a twist of fate between workers and employers. Hence, almost 75% of all students who are hired in the commercial hospitality organisations and the enormous proportion of students who are working do so in front-desk jobs like waiters/waitresses, sales people and check out assistants.

The number of ethnic minority employees within the broader tourism and hospitality industry is 12%, a little greater than the all sector percentage of 10.5%. Regarding skills only 13% of workers in tourism and hospitality possess a degree or similar qualification compared to a general sector percentage of 30%, with 16% of the labour force possessing no skills compared to 12% of the total labour force.

Having briefly considered the nature of the tourism and hospitality sector and the features of its labour force focus now shift to understanding human resource management and the increasingly significant function it is expected to perform in organisational success.

There have been several efforts to describe what precisely human resource management might be and in fact Jollife and Farnsworth identify that it is an issue of significant academic research and that, finally, there is no consensus on what human resource management means.

Evidently what the above argument points to is that human resource management implies different things to different individuals, dependent on whether they are managers, employees or academics and there is no one description that will sufficiently capture the possible intricacy of the subject.

That said, for the objectives of this paper it will recognise human resource management as being mostly about how companies seek to treat their workers in the search of organisational success. Hence, human resource management is a unique approach to workforce management which focuses on achieving competitive edge via the strategic employment of an exceedingly dedicated and competent labour force, utilising an integrated collection of cultural, organisational and staff approaches.

The challenge of human resource management then would appear to be how to hire, deploy, establish, remunerate and encourage employees, leading to them being an origin of competitive edge. Some of the HRM roles include: staffing and selection, retention, and career development.

In addition to offering the precise description above, Price as well presented one of the most basic and most tolerating efforts of recognising diverse approaches to human resource management. Such diverse approaches are captured through the concept of hard and soft human resource management, each of which is now briefly defined. The hard approach is perceived to be a fundamental and financially sound approach to human resource management.

In this perspective HRM approaches are driven by tactical contemplation to achieve competitive edge, optimising management whilst attaining the lowest possible labour expenditure. Such approach is quantitative and labour is an input, the same as any other. The emphasis is on human resource management. In contrast the soft approach is viewed to be much more on implementing a developmental and humanistic approach to human resource management.

As an outcome a company’s HRM approach is expected to be more consensual and reliant on an elevated degree of organisational loyalty to workers, which is anticipated to result in shared loyalty from workers, elevated confidence and improved production.

Workers are perceived as being positive, able to being developed and worthy of confidence and teamwork. This strategy aims at human resource management. What hard and soft strategies to human resource management suggest is that organisations will change their HRM approaches.

One of the most influential efforts of developing an approach that recognised the need for a link between human resource management and the competitive approach was that presented by McGunnigle and Jameson. McGunnigle and Jameson generated a series of elements of required role characteristics that enabled the fit between human resource management and competitive approach to be created.

The kind of required role elements within McGunnigle and Jameson’s system was dependent on the overall soft approaches that a company could utilise with a view of seeking competitive advantage and the human resource management strategies utilised to maintain this. First, there is an originality approach, where companies seek to establish services and products that are competitive, such that the concentration here is on organisations providing something novel and diverse.

Companies utilising soft strategy seek to establish a milieu where novelty is enabled to prevail. As a result, the worker required role feature in this context is defined by behaviours such as readiness to bear ambiguity and irregularity, the need to be innovative and threat taking. Given such features the nature of human resource management approach emerging from this strategy is dependent on having an enormous number of greatly capable people who are expected to enjoy high degrees of democracy.

This support for the role of soft human resource management approaches fitting the companies own tactically described market portion to establish a fit between the operative fields of marketing, activities and human resource management is in addition evident in the work of Canny.

Canny describes four fundamental standards within which service companies can be potentially located. The main aspect which comes out from the work of Canny is the potential interaction between the soft approach of human resource management which best fits the organisation and the service activity kind utilised by the organisation.

As the paper has already noted hospitality and tourism in Australia is expected to provide great diversity in terms of human resource management strategies and practises and it would be good to consider that these are seldom awful.

Facts equally show that though that this is not at all times the case. To recognise this issue, this paper focuses on developing a rational account of how organisations within tourism and hospitality create and apply their human resource standards and policies and what such a rational view will mean for workers.

This paper recognised the significance of hospitality and tourism as a job industry in Australia. The industry offers an outsized and different number of careers and will be significant for future career development throughout the developed and developing nations.

While the number of careers created by the hospitality and tourism sector is inspiring there are a number of issues regarding the nature of job experience in the industry. Underlying this discussion are some theories of human resource management which offer an outline in which to locate the approaches utilised in the tourism and hospitality companies.

Boxall, P, & J Purcell, ‘Strategic human resource management: where have we come from and where we should be going’, International Journal of Management Reviews , vol. 2, no. 2, 2009, pp. 183–203.

Canny, A, ‘Flexible labour: the growth of student employment in the UK’, Journal of Education and Work , vol. 15, no. 3, 2007, pp. 277–301.

Jollife, L, & R Farnsworth, ‘Seasonality in tourism employment: human resources challenges’, International Journal of Contemporary Hospitality Management , vol. 15, no. 6, 2008, pp. 312–316.

Lindsay, C, & R McQuaid, ‘Avoiding the McJobs: unemployed job seekers and attitudes to service work’, Employment and Society , vol. 18, no. 2, 2006, pp. 297-319.

McGunnigle, P, & S Jameson, ‘HRM in UK hotels: a focus on commitment’, Employee Relations , vo. 22, no. 4, 2010, pp. 403–422.

Nickson, D, & R Wood, ‘HRM in the hotel industry: a comment and response’, Human Resource Management Journal , vol. 10, no. 4, 2011, pp. 88–90.

Price, L, ‘Poor personnel practise in the hotel and catering industry – does it matter?’, Human Resource Management Journal , vol. 4, no. 4, 2011, pp. 44–62.

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