In developing global strategy, it is useful to distinguish between three. The rapid development of international economic integration and globalization has led to significant changes in hospitality industry. Critical issues of globalisation in the international. In addition, global economic development, and the growing competition in a global economy. Top ten issues which poses a biggest challenge for hospitality industry. Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. For the analysis of contemporary processes in the hospitality industry, the authors of this article used theoretical and empirical methods of research economic. They could lose their local uniqueness and authenticity. Hlt, is a worldleader in the global hospitality industry operating within the hotel industry, a subsegment of the expansive hospitality industry.
Critical issues of globalisation in the international hotel industry. Understanding the structural dynamics of the american hotel industry 5. The globalisation issue in the hospitality industry tourism essay. Go, f, pine, r 1995 globalization strategy in the hotel industry. Globalisation in hospitality industry essay example. In case of hotel industry specifically, the internationalization has been based on the north american branded, relatively up market and businesshospitality industry. In the 21st century, with the increasing levels of globalization in hotel industry, hotel companies will need to learn different management approaches to survive and develop in environmental circumstances with high levels of uncertainty as well as understand the implication of future impacts, both. These are critically important questions as todays increasingly complex business environment exposes hospitality companies to numerous risks. The term globalization refers to a trend towards a more integrated global economic system. Globalization or localization of consumer preferences.
The hospitality industry has failed to retain good professionals. Impact of globalization on hospitality publish your master. Global strategies in the international hotel industry bashar al. Impacts of globalization in the hospitality industry 123. The researchers had selected uk hotel companies, is it applicable to the us based and asian based hotel chains.
Eventually, the development of the semiconductor spawned the current information technology revolution. Compared to other sectors of the global economy, the industry is one600 of the fastest growing, accounting for more than one third of the total global services trade. Globalization strategy in the hotel industry frank m. Marketing strategies for hotel industry internationalization. In the 21st century, with the increasing levels of globalization in hotel industry, hotel companies will need to learn different management approaches to survive and develop in environmental circumstances with high levels of uncertainty as well as understand the implication of. Factors of internalisation of hotel chains phd student maya. Information gathered from industry experts is used to develop a set of hypotheses which are then tested against evidence provided by interviews with senior executives and other data. Abstract globalisation is becoming increasing important these years in international hotel industry. Download file to see previous pages what is the impact of global marketing with regard to positioning and branding. Retention of the workforce through training and development in the hotel industry is a problem and. Also, this article aims at discussing the globalization of the hospitality industry and modes of entry of hospitality companies in the international markets. Risk management strategies for the hospitality industry abstract does your organization integrate the management of risk and opportunity have you evaluated nontraditional risk exposures. With the companys first hotel in 1919 to its thousands of hotels today, the company has seen. Globalization is a key issue for the hospitality industry.
In the 21st century, with the increasing levels of globalization in hotel industry, hotel companies will need to learn different management approaches to survive and develop in environmenta. The results of the field work that was carried out for the study applied on the process of internationalization of the hotel industry in morelia. An overview of strategy, structure and globalization 53. Sustaining the competitiveness of hong kongs hotel industry 7. Also, this article aims at discussing the globalization of the hospitality industry and modes of entry. Another significant issue is the concept of globalization. In particular, the researched organization was a big hotel situated in corfu, greece. A two stage qualitative research methodology is used to evaluate the forces driving the adoption of global strategies in the hotel industry and the strategic response of international hotel chains to those drivers.
Yip identifies four sets of industry globalization drivers that underlie conditions in each industry that create the potential for that industry to become more global and, as a consequence, for the potential viability of a global approach to strategy. Impact of globalization in kenyas hospitality industry on human resources in the u. Request pdf global strategies in the international hotel industry a two stage qualitative research methodology is used to evaluate the forces driving the adoption of global strategies in the. The industry is definitely on the rise and is expanding. Middle east, hotel pipelines and airport infrastructure upgrades are soaring. And, despite their relative maturity, the us and europe continue to attract the attention of the international investment community, with many looking to emerging opportunities in cities such as dublin, lisbon and copenhagen.
Therefore international hotel companies need to consider their business strategies in a global context. Technology, globalization, and international competitiveness 31 specialization and exchange. The complexity of globalization is presented here as the positive and negative effects, implication to local governments tourism policies and marketing strategies of the hospitality industry. How does the international hotel company implement and control the global systems integration.
Pdf critical issues of globalisation in the international hotel industry. The strength of the drivers varies across industries, with firms integrating activities in. In recent decades, international tourism has taken a giant leap to become one of the largest and most profitable sectors of the world economy. To what degree this can come true is a complicated question considered from various aspects, mainly in the studies. Risk management strategies for the hospitality industry. In the 21st century, with the increasing levels of globalization in hospitality industry, hotel companies will need to learn different management approaches to survive and develop in environmental circumstances with high levels of uncertainty as well as understand the implication of future impacts, both positive and negative, of the changing environment in which they operate. About the book hotel rating systems are used in almost all countries. Globalization strategy in the hotel industry go, frank m. Aug 05, 2017 thus, it is of great value to the economy as globalization helps to pump in money into the country. The impacts of globalistion in hotel industry and its negative effects slide 2.
Article information, pdf download for the globalisation of the hotel industry. Global strategies in the international hotel industry. The effects of globalization on the hospitality industry. Therefore, it is necessary to dwell on various aspects of globalization as the process influencing the current and future developments in hospitality industry. Focusing on the hospitality industry in particular, the impacts of globalization have had far reaching consequences, which have. Which international hotel chains would be an ideal sample for this study.
Future of travel industry, hotels, business travel industry keynote speaker ath amex event duration. Introduction globalization can be loosely defined as the process of communication and assimilation among people, companies and governments of different nations, a process driven by international trade and investment and aided by information technology smith and doyle. Human resources development, employment and globalization in the hotel, catering and tourism sector, report for discussion at the tripartite meeting on human resources development, employment and globalization in the hotel, catering and tourism sector, 26 april 2001, sectoral. Global strategies in the international hotel industry request pdf.
After all, the people who protest in the streets of seattle, stockholm and washington also believe in a. Global strategy is a shortened term that covers three areas. Assessment of the impact of globalization on the introduction. Curiously, though globalization las vegasstyle comes close to the fairytale vision of the world preferred not only by some americans, but also by antiglobalization protesters. In a sense, the primary goal of globalization is to create an integrated world economy. Hospitality adjusts to globalization roundhill hospitality. Globalization also helps them to understand what importance of humanity is. It is a continuous process in business that crosses into the economic, political, legal, technological, and cultural spheres. These companies must prepare to deal with questions arising due to a changing global environment.
The globalisation of the hotel industry and the variety of emerging. The purpose was to examine issues that affect the hotels operation, create a simple strategic analysis through basic tools used in strategic management, determine strengths and weaknesses of the. Factors of internalisation of hotel chains phd student maya ivanova introduction the wish for growth and multiplication is a strategic decision and results from a companys readiness to set foot on a foreign market. Key areas, including human resources, organizational change. Impact of globalization on the hotel industry essay 1299 words 6 pages. The aim of this article is to study the extent to which the strategic management principles are used by hospitality industry and to discuss the structure of this industry. Chapter 2 the globalization of companies and industries going global is often described in incremental terms as a more or less gradual process, starting with increased exports or global sourcing, followed by a modest international presence, growing into a multinational organization, and. The policy makers, managers, and researchers take this process seriously, and contribute in enhancing the system to reflect the needs of the modern traveler. Globalisation, issues and its impact on hotel industry. Effects of globalization on international hospitality industry. This paper presents strategies for international hotel companies to operate in the. The results indicate that global strategy is most influenced by market factors, other drivers having much less influence. Globalisation could lead to bland hotel images where hotels are similar wherever they are located.
Globalisation is a key issue for the hospitality industry. The impact on globalization in hospitality industry essay. Hilton provides a uniquely and truly global product across the globe. Futurist keynote speaker patrick dixon future 56,415 views 38. Due to globalization in the hotel industry, we can employ people from different countries as it is the usually different language they may sometimes have problems in communicating with the customers. The results indicate that global strategy is most influenced by market factors, other. Developments and challenges in the hospitality and tourism. Global strategies in the international hotel industry by. In order to understand whether that image is aligned with practice, this paper first examines the forces driving globalization in the sector and then the extent to which international hotel chains actually pursue global strategies. The hotel industry in kenya has been rocked by various challenges brought about by globalization, the major one being stiff competition in the industry. Due to globalization more and more people from different parts of the world are traveling around the world. Being competitive in business these days does not only come from effective strategies or just effective customer service.
The rapid development of international economic integration and globalization. Global uncertainty while the global hospitality industry continues to recover following the effects of the terrorist attacks of september 11, 2001, sars, the war on terrorism in afghanistan, and the war in iraq, global uncertainty remains a major concern. Impact of globalization on hospitality publish your. This allows for more and more competition with the easier barriers for entry. The hotel industry is a worldwide industry that has many major corporations along with thousands of locally owned hotels and bed and breakfasts. The publication looks at the ways in which major international hotel chains and companies, such as marriott, hilton, forte, shangrila and new worldramada, have developed and implemented their international strategies to expand in an increasingly competitive environment.
The globalisation issue in the hospitality industry. The book draws on the unique backgrounds of the author from different regions of the world to give a truly international perspective on the issues covered. Technology, globalization, and international competitiveness. With globalization becoming more popular stress of relocating one family is becoming prevalent. The study is exploratory, aimed at establishing how the strategies enhance competitive advantage in the hotel industry. The globalization of the hospitality and tourism industry. Racism is still a part of some people but due to globalization it is getting hidden. Identify and critique up to three impacts of globalisation on the hospitality industry and discuss strategies that hotel companies may implement to address globalisation. For those companies pursuing a global strategy and accustomed to hotel management contracts, franchising relationships and nonrecourse financing, significant. Globalization strategies adopted by five star hotels in. Developments and challenges in the hospitality and tourism sector.
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