Sample Paper on Changes affecting the Hospitality Industry


The hospitality industry, as it is today, is certainly undergoing changes towards the future. Over the past years, the industry has undergone several transformations that can be attributed to three stages; short-term drivers, medium-term drivers, and long term drivers. The short-term drivers that bring changes to the contemporary hospitality industry include globalization, current technology, demanding customers and price transparency (Barth & Hayes, 2006, 162). Medium term drivers consist of globalization and emerging geographical markets, channel shifts, and demanding or cultured customers. The third driving factor for the contemporary changes in the hospitality industry is the long-term drivers, which include hotel management, technological advancement and demanding customers. In all the three driving factors for the changes, demanding customers can be considered a constant factor which the hospitality industry has to satisfy.

Customers are the main drivers of the changes that take place in the hospitality industry, and at the same time, the business owners must develop strategies that will also benefit them by maximizing the revenues. Developing strategic plans for the management and improvement of the hospitality industry must have a deeper understanding of the customer’s demands and tastes. The managers are also expected to know the customer’s behaviors and preferences for products and services. The expectations can be achieved through creating client history that can be used by the management to develop guidelines that contribute to the contemporary changes that are seen today and for the future (Bob, 2012, 364).

This paper discusses some of the contemporary changes in line with the hospitality operations, management, and legal issues. The paper also creates a justification for future possibilities and developments in the hospitality industry. Finally, the work analyzes the predicaments and trends that are being realized in the contemporary hospitality business.

a)      Analysis of Managerial, Operational, and Legislative Issues (AC. 3.1)

The Hospitality industry is a wide field of operation that is responsible for offering services such as restaurants, lodging, theme parks, event planning, transportation, and entertainment. The industry is considered as one of the richest business ventures where people spend money on leisure dealings. The industry, therefore, requires sufficient and reliable operations that will successfully manage the hotels, restaurants, and carry out the maintenance of the facilities such as housekeeping, bars, accommodation and all sectors that provide services to the clients while maximizing profits. The operations of the hospitality industry constitute the fastest growing business in the current global economy and offer many employment opportunities. The operation of the industry is made better by providing courses and training to students that are expected to build a strong basis for the business operations. Some of the training considered in the business focuses on management, service quality, public speaking, and accounting (Barth & Hayes, 2006, 194).

Managerial work or the management of the hospitality industry today cannot be compared to the previous management practices. The current managerial practices of the contemporary hospitality industry call for educated and skillful personnel that can sustain and improve the business revenues. Maximizing the business revenues is important for the business to make the necessary advancement that is aimed at meeting customers’ demands. Effective management requires leadership qualities like planning, organizing, controlling, and leading. Development in the hospitality industry concerns having managers that are good in planning so that they can determine the future action that needs to be undertaken to meet customer’s preference and demands. Laying good plans in the business has enabled the managers to know when and how to carry out actions that coincide with the current customers’ tastes and preferences (Bob, 2012, 281).

The main objective of being in business such as the hospitality industry is to provide quality services and maximize revenues. The industry is therefore deploying management teams with good organizing and organizational skills. The management of the industry ensures maximum resource utilization that enables the business to succeed in the set plans. The business develops strategies that help retain customers by keeping customers’ history and capturing the market through advertisement and promotions. Leadership is a key area for any organization that intends to succeed. The contemporary hospitality industry has invested in providing leadership in the business by providing competent managers and staff. Handling customers from various backgrounds is the responsibility of the hospitality industry, and the activity can be quite challenging. Leadership is necessary to be able to deal with difficult customers and clients that are ready to spend less for more quality services (Dana, 2012, 329).

Management of the current hospitality industry requires staff that is able to understand the customers and one that knows what is to be done and how to manage situations that do arise from the customers that need attention. The managers also provide leadership by ensuring the customers are attended to promptly, and staff pays close attention to the customers’ needs. The industry management team is responsible for controlling or monitoring all the business progress in relation to the laid out plans. The contemporary changes in the hospitality business depend on the information or the feedback that is offered by the customers. The feedback is very important in growing guidelines that are crucial to making the necessary changes.

The contemporary hospitality industry is expected to comply with certain standards that are setby the governing bodies at both local and international levels. One of the legal issues in the current hospitality industry is the cost of labor. The main consumer of hospitality business revenue is the payment of staff salaries. The cost of paying workers is the industry biggest financial consumers that thebusiness always keep in a balance. Multicultural issue is one of the recent trends that surround the industry. The multicultural development in the business requires the employees to be equipped with the knowledge of understanding and considering all the clients that need the services (Timothy, 2010, 261). The multicultural issues are also linked to the global development, and it requires the hospitality industry participate in bringing the various continents together.

The main development in the hospitality industry is the changes that are realized from higher education. The industry has brought about changes in the learning institutions where curriculum is developed for the student to meet the qualifications for the business staff. The training and learning programs are made to suit the current consumer’s demands and preferences. The other legislative issue is related to the application of social media for gathering information, which has become a common issue. Some of the customers’ complaints are incorporated when designing development plans and corrective actions to be undertaken to maintain the performance of the business (Dana, 2012, 172).

b)      Justification of Predicted Future Trends and Developments (AC 4.1)

The numerous advancements that are realized in the contemporary hospitality industry are done to help retain the customers and maintain the company’s positive image. The business strives to maintain a positive image through ensuring satisfactory customer service provisions and adopting the trends that go with customers’ preferences. Quality service and good customers’ relations are the key foundations for the hospitality industry’s success. The kind of leadership for the contemporary hospitality industry is to create customer loyalty and to influence the client’s future behaviors and actions towards the quality of service delivery.

Globalization in the current economy is being driven by the hospitality industry. People need to move from one geographical zone to another and expect to be receiving quality service. The Hospitality industry is the one in the forefront in receiving guests from various regions, and they provide services that make the visiting guests feel at home (Muzaffer & John, 2013, 324).  The issues of security have become a challenge in the current society, with many issues of terrorism being reported. The hospitality industry has ensured adequate security for the clients. The industry considers guest safety a first priority by increasing security measures in hotels, airports, and public places.

The Hospitality industry is one of the diverse business activities in the global market. The business creates employment for people from various geographical regions and all over the world to create an understanding of the various cultural backgrounds (Timothy, 2010, 241). The diversity in the industry creates an understanding of the different cultural practices, hence appreciating the cultural values. Appreciating different cultures is beneficial in addressing the multicultural issues that can have a negative impact on the business. Diversity in the business dampens discrimination in service delivery and promotes intercultural ethnic practices such as education and sports.

Service delivery in the hospitality industry requires good leadership abilities. Consumer tastes and preferences are dynamic, hence, good leadership is necessary for monitoring the changes. The industry is very competitive, and hence, quality service plays a major role in attracting and retaining customers to ensure the business does not lose revenue. Excellent service quality is advantageous to the industry, as it will maximize profits by attracting more customers and increasing preferences for meeting guest expectations (Barth & Hayes, 2006, 184).

Technological advancement is the driving force that creates development that brings intense competition in the hospitality industry. Technology is a strategic resource for the performance of the contemporary hospitality industry. Maximizing the business profitability and revenues requires the business to pass adequate information to clients. Application of technology, for example creating a website on the internet, provides substantial information to the clients. Technology has increased efficiency in restaurant operations, lodging management and swift operation at the front desk. Pricing and value are another factor in the contemporary hospitality industry that clients always consider (Timothy, 2010, 238). The level of service and products being offered depends on the money the client is ready to part with. The industry has developed all services that consider every person in the society. The services will vary from room design, interpersonal services, functional services, and food and beverage services.

c)      Impact Analysis of the Predicted Developments (AC 4.2)

The current trend in the hospitality industry has created several competitions not only in the hospitality business but also in the education sector. The industry is expected to offer quality service to the clients from every part of the globe and maintain and improve the quality of service. Quality services must consider environmental aspects that are considered global issues such as climate change. The development of the industry has embraced the practice of establishing Eco-lodge and playing a major role in environmental conservation (Dana, 2012, 328).

The adoption of technology in the business is very advantageous to hotels when making reservations and booking guests. The technological platform that is utilized by the hospitality business is able to keep clients’ data, hence keeping track of the customers is made easy. Globalization in the hospitality industry has created brand integrity whereby hotels supply continuous services and provide support for the global market. The practice of integrating the values of people from different cultural backgrounds and being sensitive towards changes in the market has promoted the business success (Muzaffer& John, 2013, 421).

The hotel industry is expanding on a daily basis; hence, the challenge would come from staffing. The industry has collaborated with learning institutions to develop a curriculum that best suits the contemporary hospitality industry. The higher learning institutions provide the much-needed skills and training that are updated to match the current technological advancements. The management of the hospitality facilities has been centralized through globalization and technological requirements. The new management in the industry has established complex management strategies that consist of security and safety, capacity building, and technological issues for future management plans. The business is committed to enforcing brand governance and accommodating support from the local and legal operations (Timothy, 2010, 215).


Hospitality industry is expanding on a daily basis with the increasing number of tourists. Better structure is being developed to meet the insatiable customer demands. The main driving force for development in the industry is the influence of the customer in terms of service quality and preference. The aim of the industry is to meet the customers’ demands, but firms must consider maximizing the business revenues. The success of the business depends on sustainability of the available competent staff, including being innovative and creating good customer relations.


Barth, S. C., & Hayes, D. K., 2006.Hospitality law: managing legal issues in the hospitality industry.Hoboken, N.J., John Wiley & Sons.

Timothy L., 2010.  The International Hotel Industry: Sustainable Management, Haworth Hospitality &Tourism Press, Binghamton, NY

Muzaffer U., John A., 2013. Current Issues and Development in Hospitality and Tourism Satisfaction, Routledge, UK

Dana V. T., 2012. Principles of Management for the Hospitality Industry, Routledge, UK

Bob B., 2012. Introduction to the UK Hospitality Industry: A Comparative Approac, Routledge, UK