Faculty of Hospitality and Tourism Management

Topic 3. Lesson 1- Current Trends and Issues in Tourism and Hospitality

Introduction

Over the years, the hospitality and travel industry has seen significant changes. We
can witness this by looking at social media, different magazines; publish opportunities, papers,
and collaborations. Because tourism is a demanding industry, it is important to understand the
impact of innovation and technology on customer deeds. In the year of 2020, it’s very likely
that almost all industries will be impacted by new waves of digital innovation in some way,

shape or form and as current trends in the hospitality industry suggest the industry is looking
to shift focus to new environments in order to satisfy consumer’s ever-growing curiosity of
choice and personalized digital content at the tip of their fingertips. The industry has been
strengthening itself by embracing a number of niche products including ecotourism, medical
tourism, adventure tourism, rural tourism, cruise tourism, Agri-tourism, tribal tourism, sports

tourism, film tourism and MICE tourism.

Let’s Learn
The tourism and hospitality industry are competitive, and businesses need
to keep up with the latest hospitality trends to avoid being left behind.
Additionally, keeping pace with the industry as a whole is a great way to
ensure your business delivers the kind of customer experience people want
and expect. Every industry has trends and innovations — the tourism industry is no exception. In a
rapidly-evolving landscape, new trends are appearing and taking hold all the time. Changing
demographics, advances in technology, shifting social mores. these influences and others all help
give rise to important new tourism trends.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

A number of significant social and economic changes have occurred that suggest a bright
future for the tourism and hospitality industry.
Early retirement

Many workers retire at an earlier age that the case in previous years. The increasing number of
people who retire early is beneficial for the tourism and hospitality industry because these people
use their time to travel and see the world. Retirees, especially those in good health and with
financial means, often prioritize travel and leisure activities they may not have had time for during
their working years. This demographic tends to spend more on experiential
services, including accommodations, guided tours, and unique dining
experiences, benefiting both the local and global tourism markets. Additionally, they
might explore longer trips, as they aren't constrained by limited vacation time, leading to a
higher economic impact in the regions they visit.
The industry has responded by tailoring services and offerings to this market
segment. For example, tour operators, hotels, and cruise lines are designing
packages that cater specifically to retirees, focusing on comfort, cultural
immersion, and educational experiences. There’s also a greater emphasis
on accessibility, relaxation, and wellness—elements that align well with
the needs and interests of this demographic.
Longer life span
The increasing population of older retired citizens who are richer due to pension programs and are
healthier provides a larger base of potential customers for tourism and hospitality operations. The
trend of longer life spans, combined with improved health and financial stability among retired
citizens, has a profound impact on the tourism and hospitality industry. As advancements in
healthcare and better living conditions enable people to live longer and remain active well into their
later years, they increasingly seek opportunities to spend their time and resources on meaningful,
enjoyable activities. For many, this includes travel and exploration, making them a valuable segment
of the tourism market.

These older, financially secure retirees often have access to pensions, savings, and investment
returns, allowing them to allocate significant resources to leisure activities. Unlike younger travelers
who may be constrained by work commitments and family obligations, this group often has greater
flexibility and the ability to travel off-peak, allowing them to avoid crowds and access lower prices.
This flexibility helps stabilize the demand across the year for tourism and hospitality businesses,
mitigating seasonal downturns and promoting more sustainable economic growth in tourist
destinations.
Shorter work week
Increase in leisure time, combined with faster and easier transportation,
makes possible for many individuals to take weekend vacations and travel
to a degree they could not have made years ago. The tourism and
hospitality industry will surely benefit from this increase in travel.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

With many companies embracing flexible work schedules, such as four-day work weeks, more
individuals find themselves with additional leisure time. This extra day off creates a new
opportunity for short trips and weekend vacations, which are increasingly popular for people
seeking quick escapes from the stresses of daily life without requiring extensive travel planning or
long periods away from work.
This shift encourages a type of "micro-tourism," where travelers prioritize short, memorable
experiences that fit into two- or three-day windows. In response, the tourism and hospitality
industry is adapting by offering packages and services specifically designed to accommodate this
style of travel. For instance, hotels and resorts may offer "weekend getaway" deals, while
transportation companies focus on convenient, direct routes for quick, hassle-free travel to popular
destinations. Destinations closer to urban areas are particularly benefiting, as they cater to tourists
who want a change of scenery but don’t want to spend excessive time on the road or in transit.
The increase in accessible and faster transportation options, from high-speed trains to low-cost
flights, also supports this trend by allowing travelers to reach destinations faster and with fewer
logistical barriers. This ease of travel opens up many more possibilities for short trips, making it
feasible for people to explore a wider range of destinations without a major time commitment.
Greater disposable income
A large portion of the additional disposable income is spent on
consumer goods and services. With greater disposable income,
individuals are more inclined to allocate a significant portion of
their earnings toward consumer goods and services, including
travel, dining, and entertainment. This increase in discretionary
spending benefits the tourism and hospitality industry, as people
prioritize experiences that enhance their quality of life and allow
them to enjoy their leisure time.
For many consumers, travel becomes a preferred avenue for
spending additional income, often focusing on experiences rather than simply accumulating
material possessions. This trend has led to growth in experiential tourism, where individuals seek
unique, personalized travel experiences, from adventure tours and cultural immersion to luxury
stays and wellness retreats. Additionally, consumers with higher disposable incomes are more
willing to pay for premium offerings such as first-class flights, luxury accommodations, and fine
dining, boosting revenues for airlines, hotels, and restaurants catering to this market.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

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. New planes use new technologies which enables
them to carry more passengers while using less fuel.
The modern highway system, with better-connected routes and faster
travel times, has reshaped domestic tourism. Highways allow travelers
to reach previously inaccessible or remote locations more easily,
increasing tourism opportunities for small towns and rural
communities. This has led to a rise in road trip culture, where
travelers can explore scenic routes, visit multiple destinations,
and take unplanned detours—all of which enhance the travel
experience. The hospitality industry has adapted to this trend by
developing roadside accommodations, local dining options, and convenience services
that cater specifically to road travelers, whether they’re day-trippers, weekend vacationers, or long-
haul travelers.
Air travel, meanwhile, has undergone dramatic improvements in fuel efficiency, passenger capacity,
and cost-effectiveness. Modern planes use cutting-edge technology to optimize fuel consumption,
which has not only reduced the environmental impact of air travel but also made flights more
affordable. With airlines able to offer lower fares, travel has become more accessible to a wider
audience. This democratization of air travel enables people from various socioeconomic
backgrounds to consider air travel for vacations, family visits, and business trips. Additionally, the
capacity to carry more passengers per flight allows airlines to serve a greater number of
destinations, including smaller, regional airports. As a result, less-populated destinations that were
once difficult to reach are now accessible to travelers, encouraging growth in emerging tourist
hotspots.
Smaller families

The average family size has decreased. Thus, it is

easier for the family to travel and travel cost less if
few family members travel. As the average family
size decreases, families find it easier to travel,
both in terms of logistics and costs. With fewer
family members, expenses such as
accommodations, dining, and transportation
become more manageable, making it possible
for families to allocate their budgets to higher-quality or more frequent travel experiences.
Smaller families often have more flexibility when it comes to choosing destinations and travel styles.
Planning and coordinating trips with a smaller group is simpler, allowing families to consider
destinations that might be challenging for larger families due to space constraints, activity
preferences, or budget limitations. This flexibility enables families to explore a wider range of
options, including more distant or exotic destinations, cultural and adventure-focused travel, or
even boutique accommodations that may have been too costly or impractical for larger families.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

In response to this trend, the tourism and hospitality industry has adapted its offerings to cater to
smaller family units. Hotels, for instance, now provide more room options, such as single-bedroom
suites or family rooms tailored for smaller groups, focusing on comfort and affordability. Travel
companies and tour operators have also responded by designing family-friendly packages that cater
to the needs of smaller groups, such as personalized tours, kid-friendly experiences, and
educational excursions that appeal to parents and children alike.

Issues in Tourism and Hospitality

Marketing

Changing Demographics
Changing demographics present a unique set of challenges
and opportunities in tourism and hospitality marketing. As
global populations shift in age, cultural composition, and
lifestyle preferences, tourism and hospitality marketers must
adapt to meet the evolving needs and expectations of diverse
customer segments.
Changing Vacation Patterns
Changing vacation patterns pose both challenges and opportunities for tourism and hospitality
marketers. As travelers shift away from traditional long vacations toward more varied travel styles,
such as short getaways, experiential travel, remote work trips, and wellness-focused vacations, the
industry must adapt its marketing strategies to appeal to a broader range of preferences and
timeframes.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

Market Segmentation
Market segmentation in tourism and hospitality is essential for targeting diverse groups of travelers
with varying needs, preferences, and expectations. However, segmentation comes with its own set
of challenges. Accurately identifying, understanding, and reaching different market segments can be
complex due to the rapidly changing dynamics of consumer behavior, technology, and global trends.
Frequent Guest Programs
Also known as loyalty programs, are widely used in the tourism and hospitality industry to build
customer loyalty, increase repeat visits, and drive revenue. However, these programs come with a
set of challenges that can impact their effectiveness and sustainability.
Maturation in Segments of the Fast-Food Industry
The fast-food industry has experienced significant maturation in its various market segments,
leading to a range of challenges and opportunities for tourism and hospitality. As the market
evolves, businesses must adapt their strategies to address changing consumer behaviors,
preferences, and competitive landscapes.

Consolidation in the Commercial Lodging Industry

Characterized by mergers and acquisitions among hotel chains and the formation of larger
hospitality groups, presents various challenges and opportunities. This trend can significantly
impact operations, marketing strategies, and customer experiences within the tourism and
hospitality sector.

Legal Issues
Liquor Liability
The legal responsibility of establishments that serve alcoholic
beverages, such as bars, restaurants, and hotels, for any damages or
injuries that occur as a result of their service. This area presents
several challenges and issues for businesses in the tourism and
hospitality sector.
Ethics in the Tourism and Hospitality Industry
It encompasses a wide range of practices, behaviors, and policies that affect various stakeholders,
including customers, employees, local communities, and the environment.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

Human Resources Issues

Sexual Harassment
A significant issue that affects
employees, customers, and the overall
workplace environment. Given the
nature of the industry, which often
involves close interactions between staff
and guests, addressing sexual
harassment is critical for ensuring a safe
and respectful environment.
Employee Turnover
Affecting operational efficiency, service quality, and overall business success. High turnover rates
can be particularly problematic in this sector, where employees are often on the front lines of
customer service.
Employee Assistance Plans

Employee Assistance Plans (EAPs) are vital resources in the tourism and hospitality industry,
offering support to employees facing personal or professional challenges. These plans can
significantly impact employee well-being, job satisfaction, and overall organizational health.
Employee Empowerment
It directly impacts employee satisfaction, service quality, and overall organizational performance.
When employees feel empowered, they are more likely to take initiative, contribute ideas, and
deliver exceptional customer service. However, several challenges can hinder effective employee
empowerment in this sector like Lack of Authority, Inadequate Training, Limited Communication,
Fear of Mistakes, Inconsistent Policies, etc.

Operations
Automation

As automation technologies, such as artificial intelligence (AI),

chatbots, and self-service kiosks, become more prevalent, there is a
concern about job displacement for front-line workers. Employees
in roles like reception, check-in, and customer service may face
redundancy. While automation can enhance efficiency, there is a risk
that it may compromise the personalized service that is often a
hallmark of the hospitality industry. Customers may prefer human
interaction for certain services and support. Increased reliance on
automation can lead to vulnerabilities if systems fail or malfunction.
Technical issues can disrupt operations and negatively impact
customer service.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

Smoking/ Nonsmoking Areas

The primary concern with smoking in hospitality venues is the health risks associated with
secondhand smoke exposure for non-smokers, including guests and staff. This can lead to
respiratory issues and other health problems. There is a diverse range of preferences among
customers regarding smoking. Some guests may prefer establishments that allow smoking, while
others may seek out non-smoking venues, affecting their choice of where to stay or dine. Many
countries and regions have specific laws and regulations regarding smoking in public spaces,
including hospitality venues. Compliance with these regulations can be challenging and may vary by
location.

Sanitation and Public Health

The spread of infectious diseases, such as norovirus, influenza, and COVID-19, poses significant
risks in hospitality settings where large groups of people gather. Outbreaks can have severe health
implications and can lead to negative publicity. Foodborne illnesses can result from improper food
handling, storage, and preparation. Ensuring food safety is paramount in maintaining customer
health and satisfaction. Poor water quality can lead to health hazards, including gastrointestinal
illnesses. Contaminated water supplies can affect not only drinking water but also the water used
for cooking and bathing.
Recycling Solid Waste
Recycling solid waste in the tourism and hospitality industry is an increasingly important issue as
businesses seek to minimize their environmental impact and promote sustainability. Employees and
guests may lack knowledge about proper recycling practices, leading to contamination of recyclable
materials and ineffective recycling efforts. Recycling regulations and guidelines can vary
significantly by location, leading to confusion about what can be recycled. This inconsistency can
hinder effective recycling efforts. Some regions may lack the necessary infrastructure for recycling,
such as collection services or recycling facilities. This can create challenges for businesses trying to
implement recycling programs.

Consumer Affairs
Fire Safety
Hospitality establishments must adhere to
various local, national, and international fire
safety regulations. Non-compliance can result in
fines, legal liabilities, and loss of reputation.
Employees need to be trained to respond
effectively in the event of a fire, including
evacuation procedures and the use of firefighting
equipment. Lack of training can lead to confusion
and delays in emergencies. Guests may not be
familiar with the fire safety procedures of a
hospitality establishment, which can lead to

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

panic or improper responses during a fire emergency.

Truth in Menus
Restaurants and food service providers may exaggerate or inaccurately describe ingredients to
enhance appeal. This can include claims about organic, locally sourced, or premium-quality items
that do not reflect reality. Many establishments make health claims about their dishes, such as being
low-calorie, gluten-free, or heart-healthy, without substantiating these claims. This can mislead
customers, especially those with dietary restrictions or health concerns. Failure to disclose
allergens or cross-contamination risks can pose serious health threats to sensitive individuals.
Misleading allergen information can lead to severe allergic reactions and legal consequences.
Hidden fees, unclear pricing structures, and misleading promotions can lead to customer
dissatisfaction. This includes practices such as charging extra for items not clearly listed on the
menu.
Diet/ Nutrition/ Health
Travelers come with various dietary preferences, including vegetarian, vegan, gluten-free, and
others. Catering to these needs can be challenging, especially in areas with limited food options.

Guests often seek transparency regarding the nutritional content of menu items. Inadequate
information can lead to customer dissatisfaction, particularly for those with health concerns.
The use of health claims in marketing can be misleading. Establishments may promote dishes as
"healthy" or "light" without substantiating these claims, leading to consumer distrust.
The anticipated growth in travel and tourism presents significant challenges and exciting
opportunities for graduates in the field. By embracing continuous learning, staying abreast of
industry trends, and developing relevant skills, graduates can position themselves for successful
and fulfilling careers. The future of tourism and hospitality will likely be shaped by adaptability,
innovation, and a commitment to sustainability, providing a dynamic landscape for new
professionals entering the industry.

THC 101- Macro Perspective of Tourism and Hospitality

 Faculty of Hospitality and Tourism Management

Topic 3. Lesson 2- Safety and Security in Tourism and Hospitality

Introduction

The first issue of universal concern is the relationship of tourism and hospitality o terrorism or, in
the larger context, to safety and security. Safety and security in tourism and hospitality will be the
greatest challenge for tourism policy and planning for many years to come (Edgell, 2008). Much of the
discussion on safety and security pertains to terrorism. Safety and security, particularly from crime
and terrorism, have been very important issues in the tourism and hospitality industry for many
decades.

Let’s Learn
Travelers now demand security measures. Safety and security must be
included in the destination development strategies especially in areas where
terror and danger exist.

The following are important items to be included in a destination's security

strategy. Dr. Peter Tarlow, an expert on tourism and security issues,
proposed these points:
1. destinations and attractions must compete on their readiness to keep visitors safe and
secure;
2. destinations that provide sound security coupled with customer service will prosper

3. the lack of a comprehensive approach will create a false sense of security. For example, only
having gas masks available for hotel guests may give false hopes if the hotel's water supply
is poisoned
4. all members of the local tourism and hospitality system should be included when
developing a comprehensive tourism and hospitality strategy
5. media coverage of a local incident can spread the negative public relations effects to the
entire continent
6. the safety development needs of the components of the visitor experience, including
transportation, infrastructure, accommodations, highway rest areas, and food sources
should be assessed; and
7. establish a place for visitors to turn to, if a terrorist attack were to occur, and openly
communicate the location and purpose of the center in advance in case of any threats.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

The Impact of the World's Economy on Tourism and Hospitality

The world economy has a major impact on the future of international travel. With a flourishing
world economy, more people will travel. If there is a greater distribution of a country’s wealth, more
people will have the financial mean to travel.
Research shows that tourism and hospitality is a useful tool for economic development that can be
used to alleviate poverty. Developing countries recognize the important contributions of tourism
and hospitality industry particularly in the establishments of small local industries; many of which
employ women

Figure 1. Total contribution of travel and tourism to gross domestic product (GDP)
worldwide in 2019 and 2022, with a forecast for 2023(in trillion U.S. dollars)

Managing Sustainable Tourism in a Responsible Manner

Sustainable tourism is of utmost importance at present and in the
future. Measures to advocate tourism agencies, host communities,
and travelers about sustainable tourism must be continued as the
world population increases. Respect for our natural and built
environments will be the country's legacy for future generations.
Sustainable tourism has been a major concern for destination
planning as well as regional and national policy-making in the last
decade.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

Tourism Policy and Strategic Planning

The sustainable benefits of tourism and hospitality for local
communities will continue to grow in importance. There
will be greater efforts toward partnership of private and
public sectors to alleviate poverty, develop policies to
combat the negative impacts on tourism and hospitality,
and support the economic, sociocultural, and
environmental contributions of tourism and hospitality to
the world.

Using E-commerce Tools in Tourism and Hospitality

If a destination does not have a good website, it will miss tourism and hospitality tale A positive
effect in developing destination websites is that developers can find good websites that are similar
to their destinations and copy the best features.
Since a large part of tourism and hospitality is marketing, tourism and hospitality promoters who
are technically knowledgeable about interactive marketing will have competitive advantage over
less-skilled competitors. The emerging e-commerce too are web blogs, podcasts, and Internet
marketing.
Tourism and Hospitality Education and Training
Globalization and innovation will be the outstanding
feature of tourism and hospitality education and
training in the future.

Many initiatives and changes are already taking place

(Edgell, 2008) in tourism and hospitality education
and training. New trends include the collaboration
between tourism agencies and educators of tourism
colleges and universities to address the changing needs of the tourism and hospitality industry.
Emerging Tourism and Hospitality Markets

Emerging tourism and hospitality markets are countries and regions that
are experiencing rapid growth in the number of visitors and tourism
spending. These markets are often characterized by a growing middle class
with disposable income, improved infrastructure, and a desire to travel.
These markets offer a variety of attractions to tourists, including natural
beauty, cultural heritage, and modern amenities. They are also investing
heavily in tourism infrastructure, such as new airports, hotels, and resorts.
Quality Tourism and Hospitality Products and Experiences
Tourists demand greater variety, flexibility, and quality in their tourism and
hospitality products (Edgell, 2008). Quality in tourism and hospitality
experiences is usually high on the tourist's list.

THC 101- Macro Perspective of Tourism and Hospitality

Faculty of Hospitality and Tourism Management

In the future, the number and variety of tourism and hospitality products will change.
Tomorrow's travelers will be better informed than today's travelers with regard to tourism
destinations because e-commerce tools are used more effectively in the planning of travel. Thus, the
future of tourism and hospitality will greatly depend on the introduction of new quality tourism and
hospitality products and experiences.
Partnership and Strategic Alliances in Tourism and Hospitality
Tourism and hospitality partnerships are a form of cooperation to facilitate competitive, and at the
same time, mutual interests, They occur in the local, regional, national, and international levels and
can be a combination of private and public sectors establishments. Two important words in
partnerships are responsibility and collaboration. it is through connectivity that successful
partnerships are formed
Coopetition can encourage a competitive yet cooperative relationship of new companies and well-
established agencies to explore the growth and expansion of tourism products.
The Impacts of Health Issues on
Tourism Hospitality

Most travelers avoid the areas that have

high health risks. Diseases spread more
rapidly due to travel, particularly through
international aviation. Reports released by
Harvard Researchers showed that the flu
virus spread more rapidly due to the
international tourism and hospitality,
especially air travel. Fear of disease
reduces travel demand. Other diseases that
affect tourism and hospitality are AIDS, SARS, and foot and mouth disease.
Policy makers now need to react to health crises in their own countries. They should formulate
strategies to provide support to individual countries and recommend restricted travel to affected
countries. Tourism and hospitality organizations must take leading roles in the development and
support of tourism and hospitality health measures and safeguards.
Effects of Natural Disasters on Tourism and Hospitality
Natural disasters have devastating impacts on the tourism and hospitality industry. People avoid
travel to affected areas. Once this occurs, there is limited opportunity to use tourism and hospitality
to restart the economy or to obtain new revenues to reinvest in the tourism and hospitality industry
and in the well-being of the local residents
Because of the negative impacts of natural disasters, new public policy tools and best practices need
to be developed that respond to natural disasters. Tourist organizations need to review contingency
plans.

THC 101- Macro Perspective of Tourism and Hospitality