Changes And Trends Of The Hospitality Industry Tourism Essay Example
Changes And Trends Of The Hospitality Industry Tourism Essay Example

Changes And Trends Of The Hospitality Industry Tourism Essay Example

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  • Pages: 10 (2728 words)
  • Published: November 3, 2017
  • Type: Research Paper
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The hospitality industry has undergone significant changes in recent decades, primarily due to globalization. According to Go and Pine (1995) and Guerrier et al. (1998), the removal of trade barriers through agreements like the North American Free Trade Agreement and the European Community has accelerated these changes. As a result, borders between regions have virtually disappeared, making financial transactions and information exchange easier. The late 90s and early 2000s saw the growth of multiple hotel ownership and stronger hotel brands, which also affected the organizational structure of the industry (Go and Pine, 1995 & Guerrier et al., 1998). Additionally, world-altering incidents such as terrorist events, SARS outbreaks, hurricanes, economic downturns,
influenza pandemics, and political tensions contribute to today's dynamic nature of the hospitality industry. Despite facing these challenges simultaneously for the first tim

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e ever before, it is predicted that this year will exceed economic recovery expectations with a projected 2% rise in Global Travel & Tourism Economy GDP creating almost one million jobs worldwide (WTTC, 2010). High-profile establishments in the industry have conducted panel discussions and studies on incidents like September 11th terrorist attack that resulted in both short-term and long-term effects.In the context of travel, some individuals completely ceased their journeys, while others only traveled when necessary. Eventually, travel patterns began to normalize, although it remains uncertain when they will fully recover. In today's world, where more and more people are traveling for both leisure and business purposes, there is a demand for hotels that offer comfort while also providing a distinct experience from one's own home. This has resulted in various types of hotels falling within the broad category of "hotels". The front offic

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department serves as the central hub of a hotel and is responsible for welcoming guests and providing information throughout their stay. It encompasses tasks related to the reception desk and other areas involved in check-in and check-out processes until guests depart. According to Vallen and Vallen (2004), the front office acts as the initial point of contact between guests and hotel operations. Roldan (2004) emphasizes that this initial interaction between guests and hotel staff plays a crucial role in ensuring success for a hotel business. The first impression made by front office staff on a hotel guest is vital and can influence their decision to return in the future. Future professionals in the industry must analyze their clients' needs and understand their desires. As stated by Bardi J.A. (2010) and Barrows C.W. & Power T.(2009), factors within the industry, such as changing client trends, contribute to its growth.
The growth in the hospitality industry can be attributed to factors such as increased leisure time and reduced working years, as stated by Guerrier et al.(1998). Additionally, historical work ethic patterns from the 18th and 19th centuries have influenced Americans' approach to leisure and recreation, according to Barrows C.W. and Power T. (2009) and Bardi J.A. (2010). In order to adapt to rising discretionary income levels and family planning trends, the hospitality industry must continuously adjust itself, including hotels. Specifically, the front office of hotels needs to constantly reorganize itself to keep up with these changes. However, it is encouraging that the industry is responding well to this evolving environment as it grows stronger each year.

In terms of internationalization, human capital plays a significant role in fostering the

expansion of businesses. Service innovation also benefits from human capital, as it positively impacts the innovation capabilities of service employees. Internationalization not only affects a firm's performance financially but also in terms of customer satisfaction levels. Furthermore, improved performance and guest satisfaction can be achieved through workforce innovation.

Theoretical / Conceptual Framework

The original model, developed by Radulovich (2008), focuses on professional service firms and includes the following elements: Degree of Internationalization, Entrepreneurial Orientation, Performance, Service Innovation, and Human Capital. This model was created to establish a connection between entrepreneurial orientation, human capital, degree of internationalization, service innovation, and performance in a service house. It was developed after conducting thorough analysis of the countries mentioned above.

The adapted model for the hospitality industry's index retains the core conceptual framework but excludes the aspect of Entrepreneurial Orientation as it is unlikely to impact the core construct and theory being explained. According to Hitt et al.'s research (2006), changes in a company's human capital have a significant influence on its international expansion, particularly for professional service firms. The study suggests that top management's knowledge and characteristics are closely linked to the level of internationalization achieved.Various studies have shown that the qualities and expertise of a leadership team can positively affect an organization's efforts to expand internationally. Recent empirical evidence also confirms the importance of human capital resources in determining success in internationalization. Overall, it can be concluded that human capital has a positive influence on international expansion. Moreover, human capital plays a role in driving innovation strategies within companies as well. A study conducted in the US revealed that both individual and organizational levels of human capital have a

positive impact on service innovations. Therefore, it can be said that interpersonal and business skills, which are part of human resources, contribute to successful innovation strategies within companies (Zhou, 2007). According to Shane (2000), prior knowledge affects an individual's ability to recognize new opportunities and provide innovative solutions. To support this theory, a comprehensive study was carried out involving eight organizations that examined innovation and opportunity recognition. The study found that previous experience influenced their ability to perceive opportunities and innovate (Edelman, Brush, Manolova, 2005). Additionally, having prior understanding and specialized knowledge about internal human resources significantly contributes to the speed of work development and level of competition in Chinese hi-tech ventures (Wu et al., 2008).The hypothesis regarding the impact of internationalization on performance suggests that multiple studies consistently demonstrate positive effects on a firm's performance when it engages in international activities (Bloodgood, Sapienza & Almeida, 1996; Delios & Beamish, 1999; Grant, 1987; Hitt et al., 1997). Additionally, research indicates that early entry into international markets provides new venture firms with a competitive advantage and leads to improved performance (Brock et al., 2006). In the hospitality industry, the establishment of brand trust and loyalty is crucial for building a successful brand.

Regarding service innovation and performance, recent studies have confirmed a positive relationship between service innovation and firm performance regardless of the context of globalization (Zhou, Yin, & Tse, 2005). A study examining the impact of China on Hong Kong's economic system found that China and Malaysia are comparable markets (Luk et al., 2008). To represent Kuala Lumpur's bustling hotel industry throughout the year, this research will be conducted in all 5-star hotels within the

city. The data collection process will involve various front office staff members. However, limitations exist due to time and resource constraints as well as limited knowledge of research methods and restricted access to data caused by financial issues and industry restrictions faced as a student.

Significance of Study

The main aim of this research paper is to examine the behavioral demands and desires of front office employees in the Hospitality and Tourism industry. By understanding their work backgrounds, motivation factors, and goals, it is possible to establish a more effective and efficient workforce that aligns with the evolving needs of the industry. Ongoing research in this industry is crucial due to its ever-changing nature, particularly in the front office section. The Human Resource department needs to identify key achievements and qualities during the hiring process. This paper will serve as a guide for participants in the hotel industry to understand their front office staff's behavior and objectives for future improvements. Managing and motivating the workforce is challenging, especially in labor-intensive industries that rely on service-oriented tasks. Without proper information on employee behavior and objectives, hotels risk customer dissatisfaction and decreased profits, which is unacceptable.

Chapter 2 - Literature Reappraisal

Hospitality Skills and Nature of Hotel Front Office Work

According to Bradley et Al (2002) (p.129), jobs in the hospitality sector are typically low-skilled, especially in rapidly growing regions like East Asia and the Pacific, Asia, Middle East, and Africa.According to the World Trade Organization (WTO, 2010), regions other than Europe and the Americas are projected to have a growth rate of 5% per year. However, there has been an ongoing debate about the

skills needed for front office work in the hospitality industry. Academic and popular press literature often portrays it as a low-skilled occupation with predominantly low skill profiles (Wood, 1997). Initially, the workforce in this industry was perceived as "uneducated, unmotivated, untrained, unskilled, and unproductive" (Shaw & Williams, 1994). However, subsequent research by Mullins (1981), Lashley & Morrison (2000), and Huddlestone and Hirst (2004) has shown that these skills can be transferred to other sectors of the economy. Mullins and Lashley challenge the notion that hospitality work is unique by suggesting that these technical skills are relevant across various industries. The perception of the industry as 'low skilled' arises from the lack of specific qualifications required for employment. Baum & Devine (2007) and Baum (2007) argue that educational attainment does not impact one's ability to work in front office positions which involve tasks such as office administration accounting and IT systems management requiring overlapping skills from different sectors. This challenges the idea of unique skillsets within hospitality work.Moreover, Baum (1996, 2002) challenges the notion that hospitality work is universally low-skilled. He suggests that this perception may only apply to Westernized international contexts where lower wages and limited career development opportunities are offered compared to other industries. Additionally, there is a gendered aspect to the hospitality industry as highlighted by Burns (1997), with women often occupying lower-skilled positions and facing challenges such as sexual harassment. Furthermore, Burns argues that there is a divide between skilled and unskilled workers in the industry based on factors like trade unions and formal communication procedures. Seymour (2000) adds that managing emotions is an essential job requirement for employees in the hospitality

industry, distinguishing certain jobs from traditional service work. According to Baum (2007), emotional intelligence plays a crucial role in this field, referring to the ability to recognize and handle one's own emotions and those of others. Finally, Warhurst et al.(2000) and Witz et al.(2003) acknowledge the influence of gender in the hospitality industry, with women often being confined to lower-skilled roles and experiencing issues like sexual harassment. Lastly, it is important to consider aesthetic labor as a skill for hospitality workers, particularly front office staff (Smith et al., 2013).Aesthetic labor involves the ability to meet job expectations while engaging with customers on different levels (cultural, societal, and economic) in a way that appears, sounds, and behaves appropriately. This requires individuals to have a certain level of education. However, employers in the industry prioritize industry skills and experience rather than educational qualifications and knowledge for training. It is important to note that both are necessary but currently lacking in the workforce (Smith & Kemmis, 2010). In the hospitality industry, most training provided is informal. Only a small percentage (14%) of employees have received higher education specific to the industry (2-1). According to People1st's survey conducted in 2009, 86% of training in the industry comes from the private sector and employer preparation. The survey also highlighted that the National Vocational Qualification course does not adequately meet industry needs. Furthermore, two interviewees emphasized the importance of on-the-job training in industries heavily reliant on interaction for skill development. A study by vocational education and training practitioners found that industry-related skills and knowledge hold more significance than academic qualifications.The service industries face challenges in maintaining high training standards due to

a lack of traditional training culture, new qualifications for most occupations, and underqualified managers. Despite these difficulties, TAFE instructors in the hospitality industry receive understanding from employers who acknowledge their struggles. During Australia's recession, individuals who lost jobs in one industry found employment opportunities in other sectors with similar skill requirements. Both industries recognize the need for improved management skills and note that the standard of service provided is lower than necessary considering customers' escalating expectations. The hospitality industry specifically experiences a shortage of chefs. Prioritizing customer service is crucial for both sectors; Maxwell, Watson, and Quail emphasize that "the customer reigns supreme" in hospitality while Huddlestone and Hirst state that "customer service is becoming the most essential employee skill" in retail. According to Maxwell et al.'s study on Hilton's training programs, achieving a service culture within the organization goes beyond individual staff training efforts. This chapter provides an overview of the research design and methodology used in the proposed study, including its purpose, objectives, and benefits.The following section is dedicated to discussing the research design utilized in this study, providing exploratory information about the population, sample selection process, and data aggregation processes. Additionally, it offers an explanation of the steps taken for data analysis and provides insight into the questionnaires that were used.

In section 3.2, the aim of this study is to gather information on front office employees' current working conditions. This includes details about their work nature, education level, skills, work background, attitudes towards work, and future plans. By analyzing these areas and gaining insights from individuals in the hospitality industry, managers, policy makers and decision makers will be able to gain a

personal understanding of their desires, needs,and future perspectives. The ultimate goal of this study is to develop better strategies and implement necessary changes in order to increase satisfaction levels,reducing employee turnover,and enhancing performance within the industry.

Section 3.3 of the research design specifically focuses on front office workers who are considered a crucial segment within the hospitality industry.The survey will be conducted among front office workers in Kuala Lumpur with a sample population coming from different countries within Kuala Lumpur as indicated in Table 1.The Cluster sampling method will be used to evaluate the front office workforce in hotels. The list below includes hotels categorized by their names and locations:

- JW Marriot Hotel - Bukit Bintang
- Park Royal Kuala Lumpur - Bukit Bintang
- The Ritz Carlton Kuala Lumpur - Bukit Bintang
- The Westin Kuala Lumpur - Bukit Bintang
- Sheraton Imperial Kuala Lumpur - Golden Triangle
- Hilton Kuala Lumpur - KL Sentral
- Le Meridien Kuala Lumpur - KL Sentral
- Ascott Kuala Lumpur - KLCC
- Crowne Plaza Mutiara Kuala Lumpur - KLCC
-Hotel Maya Kuala Lumpur – KLCC
-Hotel Nikko Kuala Lumpur – KLCC
-Mandarin Oriental Kuala Lumpur – KLCC
-Micasa All Suite Hotel – KLCC
-Pacific Regency Hotel Suites Kuala Lumpur – KLCC
–Prince Hotel and Residence – klcc Renaissance kuala lumpur hotel, klcc Shangri-La hotel, Klcc Gardens hotel and residences, Mid Valley Palace of the golden horses, Mines Grand Dorsett Subang as well as Holiday Villa Subang Sunway Resort hotel and Spa Saujana kuala lumpur.

Table 1 provides a summary of this information.The aim of the study is to analyze all 5-star hotels in Kuala Lumpur using data from KL-Hotels.com in order to determine their locations. The

accuracy of this text will be verified through several procedures. Firstly, a sample population will be selected to create a sample frame for categorizing the hotels based on their location classes, which will help manage the information. Once approved by the General Managers of each hotel, questionnaires will be distributed among the front office staff as part of the data collection process. This primary data, collected through the questionnaires, will be supplemented with secondary data from previous research on workforce effectiveness and improvement strategies obtained from sources such as journal articles, textbooks, and reports. To ensure participation in the study, formal proposals will be sent to each General Manager and once approved, all front office staff members including night auditors, concierges, bellmen, and front office assistants will be identified and their information recorded. The questionnaire will then be electronically distributed to the head of the front office department responsible for collecting and analyzing them.The purpose of using SPSS software for questionnaire analysis is to identify any biased or unreliable responses. The data collected will be organized and analyzed in order to verify or question the results. The survey is focused on gathering information about the front office department, including job description, work experience, future aspirations, and essential abilities. It consists of four parts: personal information, multiple-choice questions related to the hospitality sector, inquiries about front office responsibilities, and an examination of employee requirements and preferences. The final section, known as the 4th subdivision, provides respondents with an opportunity to freely express their opinions on management levels and their perspectives on training and skills in the industry.

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