G LOBAL ISSUES AND HOSPITALITY The Hospitality and network usually reacts quickly to the state of the economy. Inflation, war, boom will affect the tourism.

GLOBAL ISSUES AND HOSPITALITY The Hospitality and network usually reacts quickly

to the state of the economy. Inflation, war, boom will affect the tourism industry in the world

Business trips also declines whenever money is concern. During good economy and bigger budget, travel and leisure activities expand.

• The hospitality and tourism network usually reacts quickly to the state of the economy.

• In times of strong economy, travel and leisure activities expand.

• Spending on travel and leisure activities is often the first item cut from a tight budget.

• Economics is the science relating to the production, distribution and use of goods and services. The relationships between these variables are studies using econometrics.

Hospitality managers measure the economic trends and use information to make decisions about investing, building, hiring or laying of workers.

Business Cycles• The economy is always in fluctuation, creating cycles of upswing and downturns. • The four phase of business cycles:

• Expansion• Peak• Contraction• Trough

Index of Leading Indicators• Besides the GDP and business cycles, there are many other indicators of an economy's health.

•Change in manufacturing inventories•Change in sensitive crude materials prices•Stock prices•Money supply & customer expectations.

$

$

LUXURY VACATIONS

MID PRICED VACATIONS

MINIVACATIONS

DEMOGRAPHICS

Demographic and socioeconomic trend Fulfilling guest’s needs and expectations is utmost

important to hospitality industry To appeal attractive, tourism promoter will

introduce something that create unusual, memorable, extra convenient that people are motivated to buy or experience it.

Fulfilling people’s expectations means first finding out what people like and this involves understanding the consumer culture

What are demographic? The statistical study of the characteristics of

human populations used to identify markets is called demographics

The characteristics includes:-- Size and growth of the population- Distribution- Vital statistics such as gender, age, level of

education, household income and ethnic- Religion

•Demographics is the statistical study of the characteristics of human population used to identify markets.

•The characteristics include:Population EducationFamily size IncomeEthnic AgeGender

•Socioeconomic data is related to both sociology (the study of human social behavior or lifestyle) and economics.

•Both demographic data, socioeconomic data, and lifestyle trends are crucial and important to the hospitality industry.

Demographic research and lifestyle trends Lifestyles information of particular interest to the

hospitality industry includes research on the tendency to travel.

Eg.- The increasing number of adventure trip for

women (resulted from women more freedom to travel and earning own money)

- Eating out trends also increasing (resulted from more women working outside from home and larger households income)

Psychological motives Research that attempts to classify people’s

internal motives and behavior known as psychographic research

Hospitality promoters use psychographic research data to decide which market segments to target and what kinds of amenities to offer at location

• Internal and external psychological factors affect the guests and clients of the hospitality industry

•External psychological motivations are; health, education, culture, recreation, religion, memorials, families and friends.

•Internal psychological motivations are; basic and secondary human motives, push/pull theory, maslow’s hierarchy of needs, psychocentric / allocentric tourists, psychographic data and hospitality promotion

•Psychographic research attempts to classify people’s internal motives and behavior.

Basic and secondary human motives All psychological motives can e classified as:-- Basic motives influence everyone and include unlearned needs such

as thirst, hunger, fear etc.Eg. People’s basic needs from a lodging facilities are a

good nights rest in a comfortable and safe room or needs for nourishment

- Secondary motivesIt is learned needs and includes achievement, desire for

power and other specialized needs usually vary from one person to another personEg. Lodging facilities appeal to secondary motives by

offering luxury suites that symbolize achievement or self esteem or secondary motives are fulfilled by celebrating special moments (birthday, wedding anniversaries etc)

BASIC AND SECONDARY HUMAN MOTIVES

• Basic motives influence everyone and include unlearned needs such as thirst, hunger, sex, fear and avoidance of pain. Examples for lodging facility are a good night's rest in a comfortable and safe room.

•Secondary motives are learned needs, desire for power and other specialized needs. Lodging facilities appeal to secondary motives by offering luxury suites to symbolize achievements.

Maslow’s Hierarchy of needs

Self-actualization needs

Esteem needs

Social needs

Safety needs

Psychological needs

Rest and relaxation

Visit ancestors

‘exotic tours’

Sailing around the world.

Maslow hierarchy of needs The push/ pull theory of traveler motivation is

closely related to the concept of hierarchy of needs cite by Abraham Maslow

There are 5 level of human needs such as:-- Psychological needs for shelter, clothes and food- Safety needs for protection from physical treats

and harm- Social needs for belonging and association with

others- Self esteem needs for fulfillment of ego and status- Self actualization needs for realizing maximum

protection and emotional well being Maslow levels of needs moves from basic motives

to secondary motives

Self-actualization

Esteem

Social

Safety

Physiological

Spa, rest and relaxation

Minivacation to nearby site

Ancestral lands

Exotic locales

Trip aroundThe world

PUSH

Pull

TravelerMotivations

Destination Attractiveness

Traveler

•Traveler motivations and possible destination choices

PUSH/PULL THEORY

Psychocentric/allocentric tourist The push and pull of travel and hierarchy of needs

work differently in different people: what is refreshing for one people(mount climbing) may be stressful to another (who would rather lie on the each)

To study the differences among people, psychologist Stanley Plog developed a tourist typology based on personality profile

The typology ranges from allocentric to psychocentric

- AllocentricThe word allocentric has its origin in allo (meaning

“varied in form”), which refers to someone who enjoy varied activities and gets a thrill from the unexpected.

important travel motivation for allocentric tourist includes learning new things and experiencing exotic cultures and customs

- Psychocentric- A psycho centric from the word psyche means “ self”

referred to a non adventure person is self inhibited- Psychocentric tourists prefer learning new things in a

safer, more predictable environment and they feel comfortable

Psychocentric Midcentrics Allocentric• Nonadventurous person who is self-inhabited

• Prefer learning new things in safer, more predictable environment.

•Favoring popular and nearby locations.

• Personalities that are fairly balanced blend of allocentric and psychocentric characteristics.

• Refers to someone who enjoys varied activities and gets a thrill from the unexpected

• learning new things and experiencing exotic cultures and customs.

• like to meet and interact with people from other cultures fulfilling sense of discovery

TECHNOLOGY FACTORS

One of the most dramatic factors happen in tourism industry is the technology.

Rapid technological advances have greatly influenced the hospitality industry. Advances in transportation, foodservice and computer information systems have improved industry productivity, enhanced service and generated greater profits

The use of technology has enhanced the production of services by making some tasks faster and easier to perform

• Began 200 years ago with power-driven machines, factories and mass production.

• Industrial innovation have given workers with higher income and more leisure income, resulting a drastic increase in travel and lodging industry.

• It also improved methods of service, the way food is stored, prepared an cooked.

• Cook-chill technology is being used in large.

• Cook-freez method and sous vide were introduced.

Effects of industrial age Technology has enhanced guest comfort and safety Eg. Cook chill technology is being used in large,

institutional operations to increase efficiency and maintain food quality and modern kitchen equipment

Effects of the computer age Computers and related technologies such as cellular

phone, allow for the efficient collection, processing, storage and transmission of information

E.g in support of management- Information system network- Assessing market information- Staffing schedule and payrolls E.g in guest service- Automated check in and checkout- Automated car rental- Business and entertainment amenities

Information system Network

• Efficiently manages the company’s reservation system.•Also manages other records such as payroll, expenses and travel agent commission program

Accessing market information

• Enables companies to exchange important demographic and historical information for marketing purposes.

Staffing schedules and payrolls

• Is a state-of-the-art technology to track employees payroll, hours worked, overtime, tips and etc.

Computerized production management

• Simplify the inventory, purchasing, preparation and costing processes• Sales can be forecast based on previous demand.

Automated check-in and check-out

• The system requires a phone call via toll-free number to obtain a room assignment. Nowadays ‘vending machines’ are widely used.

Automated car rental

•Speed checking in and out with automated system.• automatically calculates and charges the appropriate fee for guest

Business & entertainment amenities

• more and more hotels are offering information service to guests, such as in-room fax machines, computers and electronic mail.

Nutritional analysis • software programs are now available that calculate and report quantities and nutritional values of key recipe ingredients.

Political forces Political forces and events result from the action

or rulings of organized governments and the actions sometimes violent

Political changes continue to shape the development of the hospitality industry, sometimes in dramatic ways

Effects of political events Political effects on the hospitality industry can be

short term or long term, local or global Eg. Recent political events, war, turmoil ad

terrorism

1. Political effects on the hospitality industry can be short-term or long term, local or global.

2. Recent political events.• Political changes continue to shape the

development of the hospitality industry.

3.War, turmoil and terrorism. • Examples: Persian gulf war and Bali Bombing

- Government policy and regulations changes are also internationally devised to change the hospitality industry

The management of the hospitality business require knowledge and sensitivity to the political and governmental forces which may shape the business

Taxes and fees Most countries throughout the world have health, fire

and safety codes that restaurant and lodging establishment must meet; may be inspected and lisenced must e paid to the local government

The hospitality establishments may be required to pay tax to the government

Sales tax sometimes charged by many countries; this tax is charged directly to the customer, based on the price of the service or product purchased

Environmental regulations and hospitality For many years, concern for the environment has been

growing Preserving wildlife and forests, conserving natural

resources and cleaning up the air, water and soil often lead to conflicts with industry

Other regulations such as:- Human resource regulation and hospitality ImmigrationUnions Labor union are political and legal force in countries

around the world, but the degree to which they affect the hospitality industry varies by city and state

Most countries have strict laws that regulate conduct between employers and the unions or workers councils representing employees