Topic 3

 KEY ISSUES AND TRENDS IN THE HOSPITALITY INDYSTRY Objective
This chapter will higlight the key issuss and trends in the hospitality industry and look at factors such as fashion and technology and how it influences the industry.

Learning Outcomes
After studing this chapter,students should be able to:-

• Identify key issues affecting the hospitality industry
• Discuss current and further trends in the hospitality inustry

key issues in the hospitality industry

Safety and security
Terrorist attacks and political instability are security issues affecting the hospitality industry.
Natural disasters such as tsunamis,floodinjg and earthquakes are increasing. Health scares are another reality which has severe in pacts.The SA RS incident in 2003 nearly crippled the hospitality industry in many Asian countries.
The industry ca do little about such external occurrences, but most have contingency plans in place for responding to a decline in demand.Emergency procedures should also be in place to deal with unexpected situations and to reassure guests and employees that their safety is a priority. Hostels have to review security policies to make establishments as safe as possible.

Technology and Disinter mediation
The Internet and information technology have impacted the hospitality industry especially as far as marketing and distribution is concerned. The Internet enables hospitality providers to market products directly to customers, bypassing intermediaries.

Organisations can achieve substantial savings by cutting out commission payable to agents.Disinter mediation refers to the practice of bypassing intermediaries.

In 2007 up to 70% of travellers used the Internet to plan their journeys and nearly 50% of travel arrangements were booked online.
Design
jomes (2002) suggests that design is  replacing location as the most important aspects of hotel management. Location was previously seen as the most important factor in attraction customers. Hotels and restaurants are paying more attention and money to create unique envuribnebts,The boutique hotel sector is gaining a loyal following of 'hip' customers attracted to its unique design and sense of style.
Guest loyalty programmes
Marketing studies suggests that guest loyalty programmes are the most important driver of repeat customer business. Hotel chains that wish to remain competitive have no choice but to offer such programmes in order to sustain market share. Loyalty programmes include redeemable points, gift certificates and discounts, sometime in partnership with airlines.

Environment and Sustainable Development
There is a growing awareness from consumers, Travellers and proprietors to the need for environmentally sound behaviour.
Hoteliers are realising that there is significant savings to be obtained by implementing environmentally friendly practices.
Environmentally friendly practises include energy conservations, water conservation and waste management. There are various organisations awarding recognition for properties with sound environmental policies, and customers are increasingly looking for these kite marks when deciding on accommodation options.