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. Therefore international hotel companies need to consider their business strategies in a global context. With globalization becoming more popular stress of relocating one family is becoming prevalent. A comprehensive analysis of hyatt hotels corporation and how it relates to competition within the hotel industry table of contents executive summary 1 external environment analysis 3. Globalisation is a key issue for the hospitality industry.
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. Global strategy is a shortened term that covers three areas. For the analysis of contemporary processes in the hospitality industry, the authors of this article used theoretical and empirical methods of research economic. The globalization of the hospitality and tourism 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. Pdf critical issues of globalisation in the international hotel 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. Essentially, these three areas refer to those strategies designed to enable an organisation to achieve its objective of international expansion. The globalisation of the hotel industry and the variety of emerging. Technology, globalization, and international competitiveness. Effects of globalization on international hospitality industry.
With the companys first hotel in 1919 to its thousands of hotels today, the company has seen. 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. In recent decades, international tourism has taken a giant leap to become one of the largest and most profitable sectors of the world economy. The strength of the drivers varies across industries, with firms integrating activities in. The rapid development of international economic integration and globalization. To what degree this can come true is a complicated question considered from various aspects, mainly in the studies. 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. Due to globalization more and more people from different parts of the world are traveling around the world. Globalization of services share professional service, such as banking and it services have been precursors in establishing global delivery models. Competition in the international hotel industry is increasingly global as hotels seek new ways to grow and customers have more alternatives to choose from. In particular, the researched organization was a big hotel situated in corfu, greece. How does the international hotel company implement and control the global systems integration. 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. Factors of internalisation of hotel chains phd student maya.
Impact of globalization on hospitality publish your. Globalization strategies adopted by five star hotels in. 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. Globalization is a key issue for the hospitality industry. Risk management strategies for the hospitality industry. Global strategies in the international hotel industry. The term globalization refers to a trend towards a more integrated global economic system. Being competitive in business these days does not only come from effective strategies or just effective customer service. 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. Globalisation could lead to bland hotel images where hotels are similar wherever they are located. About the book hotel rating systems are used in almost all countries. Critical issues of globalisation in the international hotel industry.
Eventually, the development of the semiconductor spawned the current information technology revolution. Hilton provides a uniquely and truly global product across the globe. An overview of strategy, structure and globalization 53. Impact of globalization in kenyas hospitality industry on human resources in the u. Also, this article aims at discussing the globalization of the hospitality industry and modes of entry.
The hospitality industry has failed to retain good professionals. For those companies pursuing a global strategy and accustomed to hotel management contracts, franchising relationships and nonrecourse financing, significant. 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. Technology, globalization, and international competitiveness 31 specialization and exchange. After all, the people who protest in the streets of seattle, stockholm and washington also believe in a. The study is exploratory, aimed at establishing how the strategies enhance competitive advantage in the hotel industry. Globalisation, issues and its impact on hotel industry.
In developing global strategy, it is useful to distinguish between three. Risk management strategies for the hospitality industry abstract does your organization integrate the management of risk and opportunity have you evaluated nontraditional risk exposures. 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. Impact of globalization on hospitality publish your master. 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. Developments and challenges in the hospitality and tourism. Hlt, is a worldleader in the global hospitality industry operating within the hotel industry, a subsegment of the expansive hospitality industry. The results indicate that global strategy is most influenced by market factors, other drivers having much less influence. The policy makers, managers, and researchers take this process seriously, and contribute in enhancing the system to reflect the needs of the modern traveler.
Sustaining the competitiveness of hong kongs hotel industry 7. The industry is definitely on the rise and is expanding. Global strategies in the international hotel industry bashar al. Understanding the structural dynamics of the american hotel industry 5. Globalisation in hospitality industry essay example. Globalization or localization of consumer preferences. Download file to see previous pages what is the impact of global marketing with regard to positioning and branding. This allows for more and more competition with the easier barriers for entry. Globalization has brought unprecedented transformational changes in all aspects of tourism and hospitality industry throughout the world creating a number of opportunities and challenges to the. 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. This paper presents strategies for international hotel companies to operate in the. Go, f, pine, r 1995 globalization strategy in the hotel industry. 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.
Retention of the workforce through training and development in the hotel industry is a problem and. 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. The globalisation issue in the hospitality industry tourism essay. 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. Top ten issues which poses a biggest challenge for hospitality industry. Impacts of globalization in the hospitality industry 123. These companies must prepare to deal with questions arising due to a changing global environment.
In addition, global economic development, and the growing competition in a global economy. The hotel industry in kenya has been rocked by various challenges brought about by globalization, the major one being stiff competition in the industry. Focusing on the hospitality industry in particular, the impacts of globalization have had far reaching consequences, which have. The rapid development of international economic integration and globalization has led to significant changes in hospitality industry. The globalisation issue in the hospitality industry. Marketing strategies for hotel industry internationalization. Globalization also helps them to understand what importance of humanity is. Key areas, including human resources, organizational change. Identify and critique up to three impacts of globalisation on the hospitality industry and discuss strategies that hotel companies may implement to address globalisation. These are critically important questions as todays increasingly complex business environment exposes hospitality companies to numerous risks. Futurist keynote speaker patrick dixon future 56,415 views 38. The impact on globalization in hospitality industry essay. The results indicate that global strategy is most influenced by market factors, other. Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high.
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. The impacts of globalistion in hotel industry and its negative effects slide 2. Critical issues of globalisation in the international. Hospitality adjusts to globalization roundhill hospitality.
Assessment of the impact of globalization on the introduction. The effects of globalization on the hospitality industry. 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. 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. Middle east, hotel pipelines and airport infrastructure upgrades are soaring. Racism is still a part of some people but due to globalization it is getting hidden. The globalization of the hospitality and tourism industry has accelerated under the pressures of advances in technology, communication and transportation as well as the deregulation of the industry and the elimination of political barriers. Global strategies in the international hotel industry request pdf.
Another significant issue is the concept of globalization. Impact of globalization on the hotel industry essay 1299 words 6 pages. Aug 05, 2017 thus, it is of great value to the economy as globalization helps to pump in money into the country. Globalization strategy in the hotel industry frank m. Developments and challenges in the hospitality and tourism sector. The globalization is one of the major strategies that drive them to complete success within the organization. Globalization strategy in the hotel industry go, frank m. The hotel industry is often perceived as one of the most global in the service sector mace, 1995. Global strategies in the international hotel industry by. Abstract globalisation is becoming increasing important these years in international hotel industry. In case of hotel industry specifically, the internationalization has been based on the north american branded, relatively up market and businesshospitality industry. Future of travel industry, hotels, business travel industry keynote speaker ath amex event duration. 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. In a sense, the primary goal of globalization is to create an integrated world economy.
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, it is necessary to dwell on various aspects of globalization as the process influencing the current and future developments in hospitality industry. Also, this article aims at discussing the globalization of the hospitality industry and modes of entry of hospitality companies in the international markets. 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.
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