Sample Paper on The Modern day Hospitality Industry

Table of Contents

The Modern day Hospitality Industry. 3

Introduction. 3

Question A.. 3

The Operational, Managerial, and Legislative Issues. 3

Question B.. 5

Predicted Future Trends and Developments. 5

Question C.. 6

Impact Analysis for the Predicted Trends and Developments. 6

Conclusion. 7


The Contemporary Hospitality Industry


The hospitality industry is an industry that is plagued with a multiplicity of issues based on its expansive nature and level of innovation and change. It caters to a diverse and unique clientele drawn from all corners of the globe and with different demographic dispensations. This has resulted in changes being made to ensure that the services offered are in conformity with their diverse clientele, as well as the contemporary global scene. It is separated into the profit-making business that comprises of the entertainment industry that includes pubs, hotels, accommodation spots, conferencing facilities, restaurants, and, whilst the welfare segment comprises of institutions catering to the needs of clients with a knack for societal development such as in schools and hospitals (Hemmington, 2007, 14). However, the scene that is representative of the contemporary hospitality industry involves an industry that is rapidly changing and there is need to adapt to these changes to effectively and productively serve the diverse and dynamic needs of its customers and employees.

Question A

The Operational, Managerial, and Legislative Issues

The issues affecting the hospital industry affect the in service, managerial, and legislative sectors of the industry. This is because the sectors have a direct impact on the welfare of not only the organization, but also on that of the customers and employees serving within the industry. The in service issues affecting this industry are mainly drawn from the food and beverage sector, technological adaptation, customer relations, food safety, and employee satisfaction (Safer Industries, 2006, 54). For instance, there is a modern shift towards embracing foods that are organic and healthy, rather than taking fast foods rich in fats and other toxins; therefore, the industry is changing its modus operandi to include sections and departments dedicated to promoting a culture of customer satisfaction for the foods they take. This analogy is also being employed to the need for organizations in this industry to be respectful of the need for environmental preservation through formulation of programs dedicated to green technologies and modus operandi. Therefore, industry players are being forced to change their operational procedures such as through the integration of better waste management, better consumption of energy, adaptation of green technologies, and planting trees and flowers in expansive compounds.

Due to the high turnover rates in the industry, the industry players have been forced o formulate more intensive measures to enhance employee satisfaction. The methodologies being employed to cater to this need are such as better salary and wage payouts, better working hours, in house promotion and career development, and education, and training for employees on stress management and skill development (Ball, Horner and Nield, 2009, 188). However, in spite of the promotion of these strategies, the turnover rates for the industry are still high and are approximately 35% for employees moving between organizations in the hospitality industry, or away to careers outside this industry.

There is also a move towards adaptation of efficacy methods that allow for better service delivery to the customers. Majority of industry players have adapted the use of online bookings and reservations, e-commerce, and electronic payment systems. All these have resulted in a system where the services are managed in a better fashion that promotes transparency, accountability, efficiency, and customer satisfaction (Jaszay & Dunk, 2006, 129).

The managerial issues plaguing this industry are mainly based on the need for better skill development, marketing strategies, brand experience, and maintaining a competitive advantage over similar industry players. For instance, newer industry players have to be unique in their service delivery to have a competitive advantage over large chain and franchised organizations with brand loyalty and a history of excellence in its service delivery. Therefore, some of the newer players are changing tact and employing people drawn from the larger organization to employ ideas that are representative of the service delivery and modus operandi of these larger organizations.

The legislative issues affecting the industry are due to changing global trends such as health and safety, and human rights activism. Current regulations require industry to adhere to stringent health and safety standards of their establishment. In the food and beverage sector, facilities have to be maintained in a clean and healthy setting where the quality and cleanliness of the food and equipment is high. Contravention of these regulations results in stringent changes and fines being imposed on the facility. Dire measures such as closure of the facilities are eminent if the facility has a history of contravention of the health regulations guiding the industry (Paul, 2008, 737).

Question B

Predicted Future Trends and Developments

The future trends in the hospitality industry are inevitable due to the rapidly changing face of modus operandi, management, employee’s roles and responsibilities, and customer needs. Therefore, these changes have resulted in a culture of innovation and growth strategies aimed at developing more effectual and attractive for increasing brand loyalty (Ball, Horner and Nield, 2009, 59). One of the major changes expected in this industry is dexterity towards adaptation of operations geared towards better environmental management and preservation. Customers prefer being associated and visiting institutions, which have a knack for protecting the environment since its shows responsibility and consideration to the needs of the society. Therefore, it is expected that future developments in the industry will revolve green establishment, better waste management, and efficient energy utilization.

Another development in this industry is related to the increasing number of customers that are expected to visit their premises and having different demographic dispensations. Therefore, industry players will have to change their service provision and facility development to cater to the needs of the dynamic customers with different financial capabilities. Currently, there is shift towards creation of budget hotels that address the financial incapability of some customers. The changes expected are due to a global increase in consumer spending that is due to better economic developments, better remunerations, customer’s sense of adventure, and better incentives for vacation spots and trips (Kusluvan, 2003, 56).

Question C

Impact Analysis for the Predicted Trends and Developments

The changes to the hospitality industry are expected to have a positive impact on the overall industry management, operation, and legislation. The adaptation of newer technologies into the industry will result in better operational procedures and service delivery. However, one adversity to this trend would be that automation of some services would result in job losses, hence increasing turnover rates. Additionally, this adaptation of technology into the industry will result in installation of complex and technical systems that requires specialized skills to maintain them. Hiring these specialized will increase costs of employee wages for the organizations. Additionally, the wage increase will be attributed to skill development of current employees through education and training (Jaszay & Dunk, 2006, 114).

Moving towards a technology dependent industry will have the overall effect of increasing the operational levels for organizations. Utility of such services as online bookings and reservations, e-commerce, and electronic payment systems will have the effect of increasing the number of customers visiting hospitality organizations (Choi & Parsa, 2006, 51). The untested and predictable of such systems could have a negative impact on the safety and privacy of customer information due to the increased cases of identity theft of personal and financial information of customers. Therefore, hotels and other industry players would have to improve their services being delivered to the customers by purchasing and installing expensive and effectual security systems. This strategy will have an added cost to operational procedures for industry players.


The contemporary hospitality industry is a rapidly changing industry with several issues and factors plaguing its continual effective and productive existence. The many operational, managerial, and legislative issues affecting this industry are due to the increased need to perfect the processes of customer satisfaction, numbers, and needs. The accessibility of success for the industry requires innovation and adaptation to changes to ensure that all parameters are met and considered. However, industry experts predict that these changes are expected to continue changing exponentially to include processes that are more intricate, regulations, and technologies.


Ball, S., Horner,S. and Nield, K., 2009, Contemporary Hospitality and Tourism Management Issues in China and India. Oxford, UK: Routledge.

Choi, G. & Parsa, H.G., 2006, Green practices II: Measuring restaurant managers’ psychological attributes and their willingness to charge for the “green practices,” Journal of Foodservice Business Research, Vol. 9, No. 4, 41-63.

Hemmington, N., 2007, From service to experience: understanding and defining the hospitality business, The Service Industries Journal, Vol.27, No. 6, pp. 1-19

Jaszay, C. & Dunk, P,. 2006, Ethical Decision Making in the Hospitality Industry, Prentice Hall: New Jersey.

Paul, B., 2008, Education and talent management: implications for the hospitality industry, International Journal of Contemporary Hospitality Management, Vol. 20, No.7, pp.730 – 742

Safer Industries, 2006, Managing Occupational Health and Safety in the Hospitality Industry, WorkCover Corporation Grants