TMC111: Macro Perspective of Torusim and Hospitality 1
MODULE 4
NEW TRENDS, ISSUES AND THE BRIGHT FUTURE OF
TOURISM AND HOSPITALITY INDUSTRY
LESSON 1: Current Trends and Issues in the
Tourism and Hospitality Industry
Module Learning Outcomes
At the end of this lesson, the students should be able to:
1. Discuss the social and economic changes that suggest a bright future for the tourism and
hospitality industry;
2. Be familiar with the specific issues that owner and managers of the tourism and hospitality
establishments are likely to face in the following areas:
a. Marketing;
b. Legal;
c. Human resources operations; and
d. Consumer affairs
3. Identify the steps take by the owners and managers of tourism and hospitality entities to
address major issues confronting the industry.
Time Frame
Week 15-16
Introduction
Good day students! Welcome to LESSON 1! This lesson will foresee the future of tourism
and hospitality industry. Several social and economic changes are likely to affect the future of the
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tourism and hospitality industry. Theses are early retirement, longer life spans, shorter workweek,
greater disposable income, greater mobility, and smaller families. Surely, travel and tourism will
grow tremendously in the global economy of the twenty-first century.
Activity
Paste some pictures on the box using your imagination on how do you think Tourism
and Hospitality would look like 5 years from now.
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Analysis
Put those images into words and try to compare the tourism and hospitality industry now
from what you can foresee in the future.
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THE BRIGHT FUTURE OF
TOURISM
In recent years, a number of significant social economic changes have occurred that suggest a
bright future for tourism industry. These are:
1. Early retirement. At present, many workers retire at earlier age than was the case in
previous years. The social security system provides benefits to workers as young as 62
years of age and many employee retirement programs are based on years of service rather
than on age.
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2. Longer life span. The average individual can expect now to live beyond the age of 70
and many will live longer. This is contrast to earlier generations when the average life
span was much less.
3. Shorter workweek. In the past, the six-day workweek was standard for most working
people. At the present, the five-day workweek is standard and the four-day workweek is
becoming common--leaving several days for other activities.
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4. Greater disposable income. The average family has no more money to spend than
before. This is due to higher wages and two-earner households.
5. Greater mobility. Improved roads and better transportation make it easier to travel
every year. The modern highway system has reduced the time required for automobile
travel between any two points.
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6. Smaller families. The average family size has decreased. Thus, it is easier for the family
to travel and travel costs less if few family members travel.
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Although the future of the tourism industry is bright, it is not without problems. Those pursuing
careers in tourism will find it necessary to obtain knowledge with regard to a number of issues
that the industry must face in the future.
These issues can be categorized under the following headings:
1. Marketing;
2. Legal;
3. Human Resources;
4. Operations; and
5. Consumer Affairs.
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Marketing Issues
A. Changing Demographics
▪ The population of developed
countries is aging. The median is
now 33 years and is projected to
increase in the com ing years.
▪ An older population has preferences
that differ from those younger
population.
▪ Another changing demographic
characteristic is the increase in the
number of single-parent
households. Single parent
households generally have lower
levels of discretionary income.
▪ A third demographic change is the
continuing growth in the number of
people traveling for personal, rather than for business purposes. Approximately
74% of domestic travelers travel primarily for a non-business purpose.
▪ The fourth demographic change is the growth in the number of international
travelers. One of the primary reasons is the decreased cost of transportation
relative to income, making travel more affordable to everyone.
B. Changing Vacation Patterns
▪ Citizens of
industrialized
countries are
changing their
vacation patterns.
▪ The traditional
once-a-year
vacation of two
weeks or more is
declining in
popularity.
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C. Market Segmentation
▪ Since 1980, the principal term in tourism marketing has been market
segmentation.
▪ Until the late 1970s, lodging
establishments attempted to
appeal to broad general
markets.
▪ Their aim was to appeal to
a broad group of potential
visitors.
▪ Examples of market
segmentation have been
evident in food service in
the past ten years.
▪ A number of restaurants
that additionally offered
extensive something-for-everyone menus have begun to see reductions in
business in business as customers have chosen to patronize restaurants offering
specialized service products.
D. Frequent Guest Programs
▪ Because of the proliferation of
properties and the increasing
competition among them, some lodging
operators have begun to develop
programs to gain repeat business.
▪ Modeled on the frequent-flyer
programs, which were successfully used
by many airline companies, these plans
give credits to regular guests.
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E. Maturation in Segments of the Fast-food Industry
▪ Segments of the fast-food market are no longer expanding to the extent that
was formerly possible.
▪ The demand for hamburger is not growing as fast as it once did, so operators
find it necessary to develop new products to maintain the desired sales levels.
F. Consolidation in the Commercial Lodging Industry
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▪ Some experts are now predicting that the number of large nationwide lodging
companies will dominate the lodging industry by acquiring smaller chains of
regional or national properties.
Legal Issues
A. Liquor Liability
▪ In the past, there was
a growing public concern
over the increasing
number of alcohol-
related automobile
accidents.
▪ At present, alcohol
and the use of drugs is a
factor in more than half
of all automobile
accidents.
▪ In one state, new
regulation have made
the discounting of the
prices of drinks – the so-
called happy hour –
illegal.
▪ In several states, establishments and their owners can be held financially
accountable if they serve alcoholic beverages to an intoxicated individual who
causes damage or injury after leaving the establishment.
▪ In some places, this has caused tremendous increase in the cost of liability
insurance.
▪ This prompted some bar owners to go out of business.
▪ It has also caused some restaurants owners to stop serving alcoholic beverages.
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B. Ethics in the Tourism Industry
▪ Ethics is an academic discipline that deals with the study of the codes of moral
conduct practiced by individual s or groups.
▪ Business ethics refers to the application of a particular moral ode to relationships,
activities, and discussions made by individuals in business or industry.
▪ Ethics in the tourism industry has been the issue for thousands of years.
▪ The business practices of some operators of tourism establishments are
questionable.
Human Resource Issues
A. Sexual Harassment
Sexual harassment may be defined as unwelcome sexual advances, requests for sexual
favors, and other verbal or physical conduct of a sexual nature that take place under any
of the following conditions:
1. Submission is made a condition of the person’s employment;
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2. Submission to or rejection of such conduct is used as a basis for employment
discussions affecting the person; and
3. It reasonably interferes with the person’s work performance or creates an intimidating,
hostile, or offensive work environment.
Most cases of sexual harassment involve complaints by females about male co-workers or
superiors. In the last ten years, the number of these cases has grown because an increasing
number of women have become willing to speak out.
Because employers are liable for the actions of their employees at work, it is very important for
employers to take the following steps:
1. Institute a strict policy banning all forms of sexual harassment in the workplace;
2. Develop appropriate training programs for managers and employees so that all will
understand and become sensitive to the nature of sexual harassment; and
3. Establish procedures for handling all complaints promptly, fairly, and in a sensitive
manner.
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B. Employee Turnover
▪ Employee turnover is
one of the major issues
confronting managers of
tourism enterprises.
▪ With turnover rates
averaging approximately
100% per year, managers are
always faced with the problem
of losing experienced
employees and hiring less
experienced employees as
replacements.
▪ Many managers in the
tourism industry understand
the requirement to reduce turnovers.
▪ Several managers and employees still treat employees as if they were part of a big
wheel rather than people.
C. Employee Assistance Plans
▪ Employee assistance plans (EAPs) are
included in the discussion of major issues in
the tourism industry because they are one of
the secular steps to pay attention regarding
the problems of their employees.
D. Employee Empowerment
▪ In some tourism establishments, managers have developed rules and procedures
that employees are directed to follow.
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▪ These include directives such as inflexible rules about checkout time, rule
prohibiting free refills on coffee, strict limits on the number of hand towels per
guest, or directives prohibiting substitutions on special dinner menus.
Operations Issues
A. Automation
Automation is the process of using electronic and mechanical equipment and machinery
to complete some or all the tasks associated with a given enterprise.
The 2 primary reasons for automating an enterprise are:
1. To increase the speed of work; and
2. To reduce the cost of work.
Automation in the travel industry is here to stay.
Computerization will affect the industry principally in three areas namely:
1. Communication
2. Interactive CRTs
3. Elimination of Tickets
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B. Smoking/Non-Smoking Areas
▪ As more and more customers of tourism entities demand smoke-free areas for
dining and smoke-free sleeping accommodations, the industry will continue to
exert efforts to meet these demands.
▪ Many lodging establishments have set aside accommodations for non-smokers.
▪ The prohibition of smoking in tourism enterprises is an issue that is of increasing
importance to owners and managers in the coming years.
C. Sanitation and Public Health
▪ A very important issue in food service is sanitation.
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▪ Everybody agrees that all steps be taken to prevent illnesses that caused by the
manner in which food is handled or to the food itself.
▪ National and local government apply strict sanitary standards to food and beverage
operations.
▪ To ensure compliance with local sanitary codes, many food and beverage
operators hire consultants to conduct regular inspections and help in the
immediate correction of any violation.
D. Recycling Solid Waste
▪ In previous years, there has been a gradual closing of landfills that were used for
disposing solid wastes and a growing awareness of the harmful effects of either
burning solid waste or dumping into the sea.
▪ In some cities, the cost of removing solid wastes is increasing to the extent that
government and citizens are unable to pay.
▪ This trend toward recycling is likely to increase.
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Consumer Affairs Issues
A. Fire Safety
▪ Fire Safety has always been an important issue in the tourism industry.
▪ In earlier centuries, taverns, inns, and hotels which were usually constructed of
wood, were regularly destroyed by fire.
▪ During the 20th century, hotels, motels, and other lodging establishments have
instituted many changes; among which are improvements in design and
construction as well as improvements in the fire control systems installed in
buildings.
▪ However, a number of dangers associated with the fire remains to be considered.
▪ Another problem is related to construction.
▪ In recent years, new buildings were well insulated to decrease heating and cooling
expenses.
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B. Truth in Menus
▪ For foods service operators, preparing
truthful menus is an ethical practice that should
never be violated.
▪ However, a small minority have produced
menus that are not accurate indicators of the
food served in their establishments.
▪ In some areas, consumer productions laws
have been passed so that those who violate the
regulate risk fines and laws of licenses.
C. Diet/Nutrition/Health
▪ Since the public is very much concerned about healthy diets containing less fats
and leers calories, many food service operators are adjusting their menus to the
changing public tastes.
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Application
POSTER MAKING: Create a poster conveying a message on “sexual harassment in the
workplace” especially in the tourism and hospitality industry. Explain your poster on blanks that
follows.
Your poster here.
Your poster’s message explanation here:
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Assessment
Among all the “Tourism Issues”, which do you think is the most indispensable one?
Defend your answer.
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"Optimism is the faith that leads to achievement. Nothing can be done
without hope and confidence."
Congratulations my dear student for completing Lesson 1! I hope you crave for more
learnings on the last lesson of this Module.
Love,
Ma’am Mecah
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MODULE 4
NEW TRENDS, ISSUES AND THE BRIGHT FUTURE
OF TOURISM AND HOSPITALITY INDUSTRY
LESSON 2: The Future of Tourism and
Hospitality
Module Learning Outcomes
At the end of this lesson, the students should be able to:
1. Foresee the future trends in the tourism and hospitality industry;
2. Discuss each of the items on the wave of future in tourism and hospitality industry;
3. Propose a plan on how to be a useful future tourism professional; and
4. Appreciate what the future holds for the tourism and hospitality industry.
Time Frame
Week 17-18
Introduction
Hi again students! I have good news, this is final lesson of this course! Congratulations for holding
until the end of our module for TMC211. I hope that in this final lesson, you will be able to
appreciate and foresee what future holds for you and for our industry! The World Travel and
Tourism Council forecasts that travel and tourism will grow at 40% to 50% in the next 10 years.
This tremendous increase presence great challenges and career opportunities for today’s tourism
and hospitality graduates.
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Activity
If there is one service in tourism here in the Philippines that you would like to change (using
technology), what would it be? Defend your answer.
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Analysis
On the spaces provided below, list 20 mutual things TOURISM INDUSTRY and INFORMATION
TECHNOLOGY shared with each other.
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According to John Naisbitt, the futurist, the global economy of the 21 st century will be
propelled by 3 super-service industries namely telecommunications, information
technology, and travel and tourism. The following tourism and hospitality items are but
few examples of the wave of the future:
1. Increase speed and shopping-use of the Internet in developed countries;
2. Extended reach in less-developed countries;
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3. Improved security of personal information;
4. Robotic labor sources;
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5. Reservation systems with more sophisticated, voice activated, and artificial
intelligence;
6. Improved navigational systems for rental cars;
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7. Electronic entertainment venues in rental cars and on planes and cruise ships;
8. Upgraded Internet personal digital assistants for operations;
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9. Marketing mass customization;
10. Comprehensive branding campaigns for large and small operators;
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11. Virtual online customer communications;
12. Just-in-time seats/rooms/cars inventories;
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13. Electronic travel agents;
14. Blended hybrid accommodations;
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15. Global anti-terrorist microchip security systems;
16. More nutritional fast-food offerings;
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17. Emphasis on ecotourism; and
18. Improved customer relationship marketing information.
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Application
Watch this YouTube video:
https://youtu.be/DJTxeL6jgEs
Assessment
From the video you just watched, what do you think awaits tourism graduates on 2030?
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“Empty pockets never held anyone back. Only empty heads and empty
hearts can do that."
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Dear YOU,
CONGRATULATIONS, you just completed TMC211! I hope you learned
so much and thank you for not giving up! I want you to tap your own back
and tell yourself “Good job, beautiful/handsome!” I know it has been a flight
with so much turbulence but I am hoping you still enjoyed the ride
Please let be reminded that you are almost halfway through the finish line
my dear, just hold on tighter and never let go. And lastly, allow me to tell
you this from the bottom of my heart, I LOVE YOU AND I AM SO
PROUD OF YOU!
With so much love,
Ma’am Mecah
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