Globalization strategic in the hotel industry pdf

The theoretical part of the thesis consists of information about tourism and tourism accommodation, strategic management in the tourism industry and strategic analysis. Procedia social and behavioral sciences 148 2014 271 a 279 3. How does the international hotel company implement and control the global systems integration. Technology, globalization, and international competitiveness. Global strategies in the international hotel industry by. Though there is boom in the service sector, most of the hotel management graduates are joining other sectors like retail and aviation. Strategic implementation for tourism, hospitality and events 472 14.

Instead, they embraced an assetlight strategy that made them less dependent on discretionary consumer spending and made their fee revenue more stable and. The researchers had selected uk hotel companies, is it applicable to the us based and asian based hotel chains. Globalization strategies adopted by five star hotels in. Aug 05, 2017 due to globalization, the managers of the hotel industry able to learn about different cultures as they get to mingle with people from various walks of life and thus, increase their knowledge. Introduction globalization can be loosely defined as the process of communication and assimilation among people, companies and governments of different nations, a process driven by international trade and investment and aided by information technology smith and doyle. Impact of globalization in kenyas hospitality industry on human resources in the u. Eric ej1115733 assessment of the impact of globalization. A strong point of our study is represented by research on the relation between strategy, competition and competitiveness. Transaction cost economics and the multinational enterprise. For the analysis of the main trends of innovation in the hospitality industry are identified, hospitality industry is done.

Abstract globalisation is becoming increasing important these years in international hotel industry. A two stage qualitative research methodology is used to evaluate the forces driving the adoption of global strategies in the hotel industry and the strategic response of international hotel chains to those drivers. Developments and challenges in the hospitality and tourism sector. The factors that influence competitiveness in the hospitality industry, as apparent in specialized literature, are outlined and explained. Identify and critique up to three impacts of globalisation on the hospitality industry and discuss strategies that hotel companies may implement to address globalisation. The globalisation issue in the hospitality industry tourism essay. This essay focuses on globalisation in the hotel industry and explains how the increasing levels of globalisation, in this particular industry may affect the internal operating environment e. Globalization, internationalization, travel industry, strategic alliances. With more than 3,000 properties in 68 countries and countless achievement awards, they are not only a wellknown but also a wellliked brand. Obwogi, phd 3 technical university of mombasa, kenya. The effects of globalization on the hospitality industry. Introduction this reports aims to discuss the key trends and issues that are currently impacting sales and marketing within the hotel industry. The rapid development of international economic integration and globalization has led to significant changes in hospitality industry. Tourist destinations must establish identities that differentiate them from other destinations.

To understand the concepts of liberalization, privatization and globalization to study the growth of information technology and communication and its impact manifested in everyday life. Another significant issue is the concept of globalization. Developing a business strategy is admirable but executing the strategy is the key. One main restraint to the hotel industry of india is the cost of land, which is as high as 50% of the total project price, in contradiction of a low 15% abroad. The industry can be broken down into three basic areas.

The hotel companies that outperformed the rest of their industry in the last downturn didnt ramp up their capital investments in tangible property as the topperforming airlines did. Information gathered from industry experts is used to develop a set of hypotheses which are then tested against evidence provided by interviews with senior executives and other data. Download file to see previous pages what is the impact of global marketing with regard to positioning and branding. Which international hotel chains would be an ideal sample for this study. International journal of hospitality management 172, 1998, 111124. One of the reasons for this is unattractive wage packages. In case of hotel industry specifically, the internationalization has been based on the north american branded, relatively up market and businesshospitality industry.

International and global strategies for tourism, hospitality and events 520 15. One of the greatest industries that the world is a participant of today is the hotel industry. The term globalization refers to a trend towards a more integrated global economic system. Therefore, it is necessary to dwell on various aspects of globalization as the process influencing the current and future developments in hospitality industry. More and more people are using the industry to enjoy personal vacations and business related trips. Global hospitality sectors are on a booming stage all over the world, because the amounts.

One simple strategy is to differentiate our operations via intangible assets. The globalization of the hospitality and tourism industry. Effects of globalization on international hospitality industry. Strategic management for tourism, hospitality and events. From family vacations to business trips, people all over the world are benefactors of the industry. However, this phenomenal benefit has challenges as well, such as communication barriers between employees. The hac represents more than 8,178 hotels, motels and resorts. In the 21st century, with the increasing levels of globalization in hospitality industry, hotel companies will need to learn different management approaches to survive and develop in environmental circumstances with high levels of uncertainty as well as understand the implication of future impacts, both positive and negative, of the changing environment in which they operate. The globalisation issue in the hospitality industry.

The hospitality industry is a broad group of businesses that provide services to customers. The impact on globalization in hospitality industry essay. In particular, the researched organization was a big hotel situated in corfu, greece. To what degree this can come true is a complicated question considered from various aspects, mainly in the studies. Yip identifies four sets of industry globalization drivers that underlie conditions in each industry that create the potential for that industry to become more global and, as a consequence, for the potential viability of a global approach to strategy. Global uncertainty while the global hospitality industry continues to recover following the effects of the terrorist attacks of september 11, 2001, sars, the war on terrorism in afghanistan, and the war in iraq, global uncertainty remains a major concern. Assessment of the impact of globalization on the introduction. Strategy and tourism, hospitality and event organizations. Strategic management in multinational companies case of. Globalization has resulted in the changing of the competitive landscape, as depicted in the model below see figure 1. The factors of competitiveness in the hospitality industry. Introduction with the interference of globalization in the hotel industry, it is inevitable for the hotel companies to meet with different environmental conditions and forced them to study about different management approaches in order to sustain with competing environmental circumstances which would enable them to realize, both negative and positive effects.

This research aims at evaluating and discussing developments and key challenges for the hospitality industry in an emerging global context and the impact of these changes on human resource development and management. Impact of globalization on hospitality publish your master. With so much profit to be earned, many investors want their piece of the pie. And, despite their relative maturity, the us and europe continue to attract the attention of the international investment community, with many looking to emerging opportunities in cities such as dublin, lisbon and copenhagen. Globalization has brought unprecedented transformational changes in all aspects of tourism and hospitality industry throughout the world creating a number of. There are a number of strategic management methods which will be used in the same analysis and it will be used for the same purpose. Impact of globalization on china s hotel industry essay 1804 words 8 pages. For over 100 years, it has worked to enhance the prosperity of the industry through strong member engagement, effective advocacy, and the provision of value added programs and services. An overview of strategy, structure and globalization 53. The study reveals that cultural diversity is highly important in hospitality business due to global customerrelated industry. Focusing on the hospitality industry in particular, the impacts of globalization have had far reaching consequences, which have. Effects of strategic management drivers on the performance of hotel industry in kenyan coast uzel jean mzera mutindi 1 phd candidate at jkuat, msa cbd, kenya. Development of strategic plan for hotel industries through swot analysis c.

Global strategies in the international hotel industry. In a sense, the primary goal of globalization is to create an integrated world economy. Discontent amongst employees based on salary issues due to global. Development of strategic plan for hotel industries through. The hotel industry in kenya has been rocked by various challenges brought about by globalization, the major one being stiff competition in the industry.

Globalization and application of strategic management model 431 information technology and increase in knowledge intensity. Sample on business strategy in hospitality industry. Strategic sourcing will benefit hotels in the longterm by providing strong supplier relationships that insure a consistent quality, availability, and price for the goods and services which are critical or at least relevant to. Strategic management in the hospitality industry video. The business strategy is a planning or concept on which basis the multiple operational functions and practices are dependent. The global financial crisis hit the hotel and lodging industry hard because of a sharp drop in business and leisure travel. This particular sector has been transformed over recent years, by advances in technology which in turn have changed consumers buying habits. Zhao and merna 1996 explained the globalization of the hospitality and tourism industry has accelerated under pressure of advances in technology, communication and transportation. The book draws on the unique backgrounds of the author from different regions of the world to give a truly international perspective on the issues covered. Developments and challenges in the hospitality and tourism.

Information gathered from industry experts is used to develop a set of hypotheses which are then tested against evidence provided by. This essay will focus on analysing the impact of the globalisation to the chinas hotel industry. The authors proved that the processes of globalization impact on the innovation management longterm growth potential of the hotel business, including a basic set of tangible and intangible business assets of strategic importance for sustainable development of enterprises in the hospitality industry. The publication looks at the ways in which major international hotel chains and companies, such as marriott, hilton, forte, shangrila and new worldramada, have developed and implemented their international strategies to expand in an increasingly competitive environment. Compared to other sectors of the global economy, the industry is one600 of the fastest growing, accounting for more than one third of the total global services trade. The growing importance of strategic alliances in creating networks of business relationships has become a trend also in tourism. Impact of globalization on the hotel industry essay bartleby. Hospitality industry is fully saturated as there are numerous players which are already operating in the industry, therefore the proportion of the rivalry among the. Factors of internalisation of hotel chains phd student maya ivanova introduction the wish for growth and multiplication is a strategic decision and results from a companys readiness to set foot on a foreign market. Impacts of globalization in the hospitality industry 123. Introduction to business strategy in hospitality industry. Impact of globalization on hospitality publish your. In this report, it is considered that business strategy of an hospitality organization reflects the success and failure in achieving business objectives. Part ia hotel industry analysis the hotel industry is one of the largest industries in the entire world.

Research in strategic management in the hospitality industry. Strategic management practices in the hotel industry of. Due to globalization, the customer base has increased greatly. Globalization of services share professional service, such as banking and it services have been precursors in establishing global delivery models. Globalisation is a key issue for the hospitality industry. In the first part of our paper the complexity of the concept of. The complexity of globalization is presented here as the positive and negative effects, implication to local governments tourism policies and marketing strategies of the hospitality industry. The authors proved that the processes of globalization including a basic set of tangible and intangible business assets of strategic importance for. Information gathered from industry experts is used to develop a. The study is exploratory, aimed at establishing how the strategies enhance competitive advantage in the hotel industry. In the 21st century, with the increasing levels of globalization in hotel industry, hotel companies will need to learn different management approaches to survive and develop in environmenta. Eventually, the development of the semiconductor spawned the current information technology revolution. Technology, globalization, and international competitiveness 31 specialization and exchange.

Cultural diversity can have a significant influence on the hospitality business. Impacts of globalisation on hotel companies internal. As an example, customer relationship management or new and innovative. Strategic alliances 481 strategy in action when does a strategic alliance become a merger. In europe the industry itself is highly fragmented. In the 21st century, with the increasing levels of globalization in hospitality industry, hotel companies will need to learn different management approaches to survive and develop in environmental circumstances with high levels of uncertainty as well as understand the implication of future impacts, both positive and negative. Middle east, hotel pipelines and airport infrastructure upgrades are soaring. The globalization of the hospitality and tourism industry has accelerated under the pressures of advances in technology, communication and transportation as well as the deregulation of the industry and the elimination of political barriers. Amresh pg students, department of mechanical engineering, dayananda sagar college of engineering, bangalore abstract a swot analysis is an organised planning technique used to assess the strengths, weaknesses. Based on this, i thought i would try to simplify the essence of strategy for todays hospitality leaders. The hospitality industry encompasses all businesses related to optional and recreational services provided to customers for. It is a continuous process in business that crosses into the economic, political, legal, technological, and cultural spheres. In addition, global economic development, and the growing competition in a global economy. Human resources development, employment and globalization in the hotel, catering and tourism sector, report for discussion at the tripartite meeting on human resources development, employment and globalization in the hotel, catering and tourism sector, 26 april 2001, sectoral.

The purpose was to examine issues that affect the hotels operation, create a simple strategic analysis through basic tools used in strategic management, determine strengths and weaknesses of the. Factors of internalisation of hotel chains phd student maya. Key areas, including human resources, organizational. We are pleased to present this years edition of global hospitality insights. Strategic analysis of marriott international, inc lauren. Globalization strategy in the hotel industry go, frank m. Marketing strategies for hotel industry internationalization. Strategic management in multinational companies case of hilton. The hotel industry is facing heavy shortage of rooms. In case of hotel industry specifically, the internationalization has been based on the north american branded, relatively up market and business hospitality industry. It should foster strategic culture in the hotel industry and to achieve what until today seems impossible, plan, not only the internal activities of the hotel, but everything that can achieve better business performance. The present study is based on the results of research conducted in 2007 by a group of researchers in the tourismservices department of the commerce faculty in ase bucharest. Strategic sourcing for a competitive advantage in the.

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