Essay Sample - Navigating Change: The Dynamic Forces Shaping the Modern Hospitality Industry

Introduction

The thriving global tourism is one of the economic forces that has driven changes in the tourism industry. The emergency of a disaster such as the COVID-19 pandemic is one of the social aspects that has impacted the hospitality sector in recent times. This paper discusses the economic, social-cultural, and technological forces that have affected the hospitality industry's operation and environment.

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Economic Forces

One of the economic factors driving change in the hospitality sector is flourishing worldwide tourism. The emergence of low-cost carriers due to technological advancement has led to a reduction in the global traveling cost enabling more individuals to tour the world. Additionally, numerous emergent markets have led to a rapid increase in GDP for many countries, making their citizens travel the globe.

Another economic force is the adoption of new asset organization methods. Many hospitality industry players are adopting the asset-light system that can enable effective separation of real-estate and operation management assets. The technique incorporates modern technology and can allow hospitality firms to focus on their primary business, leading to improved efficiencies and asset management.

The emergence of OTAs (Online Travel Agencies) has also impacted the hospitality industry. OTAs have changed dissemination avenues and subsequently seized value away from hotel owners and management (Huang Yin et al., 440). Furthermore, they have established strong relations and connections with travelers through social media platforms, making hoteliers incur a cost in accessing customers.

Social-Cultural Forces

Among the social-cultural forces affecting the hospitality industry is the emergency of virtual communities. Several social channels, such as TripAdvisor, have led to an overwhelming impact on customers, increasing transparency in the tourism sector. Furthermore, they have enhanced the quality of services offered by hospitality firms.

The emergency of disasters such as the Covid-19 pandemic has also impacted the hospitality sector in recent times. Many countries enacted travel restrictions to help reduce the further spread of the Coronavirus, and that negatively affected tourism (Gursoy and Christina, 527). Many hotels have now shifted to online booking methods to reduce physical conduct with customers and help reduce the spread of the disease.

Another social factor is the change in the world's demographics. Young adults and teenagers tend to prefer no-frills and inexpensive food products and services. Many hotels have been forced to change their menus and mode of operation to satisfy teenagers and young adults increasing population.

Technological Forces

Social media is one of the technical aspects that has dramatically impacted the hospitality sector. The youths constitute the largest percentage of North America's population, and they tend to spend much of their free time on social media platforms (Kansakar et al., 64). Many hospitality companies currently use social media platforms such as Facebook to promote their products.

Another technological force impacting hospitality is the emergence of advanced and cheaper forms of transport, which have increased global travel and tourism. Many people can now afford airline tickets, freight charges, and other travel expenses, leading to increased tourists.

Ultimately, digitalized customer experience has also positively impacted the hospitality sector. Several hospitality firms now use Mobile Apps to enhance customer care management of services to clients. Additionally, Mobile Apps can allow hotels to control many features of the guest experience and cycle.

Conclusion

The forces driving change in the hospitality industries can be either social, political, economic, or technological. The emergence of new asset organization methods has led to a change in operations in the hospitality sector. Ultimately, the occurrence of the COVID-19 pandemic is one of the social aspects that has drastically affected the hospitality sector.

Works Cited

Gursoy, Dogan, and Christina G. Chi. "Effects of COVID-19 pandemic on the hospitality industry: a review of the current situations and a research agenda." (2020): 527-529.

Huang Yin, Cherry, Edmund Goh, and Rob Law. "Developing inter-organizational relationships with online travel agencies (OTAs) and the hotel industry." Journal of Travel & Tourism Marketing 36.4 (2019): 428-442.

Kansakar, Prasanna, Arslan Munir, and Neda Shabani. "Technology in the hospitality industry: Prospects and challenges." IEEE Consumer Electronics Magazine 8.3 (2019): 60-65.