Lesson 3: Current Trends and Issues in the Tourism and Hospitality Industry The Bright Future of Tourism 1.

Early Retirement- At present, many workers retire at earlier ages than was the case in previous years. The social security system provides benefits to workers as young as 62 years of age and many employee retirement programs are based on years of service rather than on age. The increasing number of people who retire early is beneficial for the tourism industry because these people use their time to travel and see the world. 2. Longer life span- The average individual can now expect to live beyond the age of 70 and many will live longer. The increasing population of older, retired citizens who are richer due to pension programs and are healthier provides a larger base of potential customers for tourism operations. 3. Shorter work week- At present, the five-day workweek is standard and the fourday workweek is becoming common- leaving several days for other activities. The resulting increase in leisure time, combined with faster and easier transportation makes it possible for many individuals to take weekend vacations and travel. 4. Greater disposable income- The average family has more money to spend than before. This is due to higher wages and two-earner households. 5. Greater mobility- Improved roads and better transportation make it easier to travel every year. 6. Smaller families- The average family has decreased. Thus, it is easier for the family to travel and travel costs less if few family members travel. Issues in Tourism MARKETING ISSUES 1. Changing Demographics- The population of developed countries is aging. The median is now 33 years and is projected to increase in the coming years. This is an issue that is significant to the tourist industry. An older population has preferences that differ from those of a younger population. Another changing demographic characteristic is the increase in the number of single-parent households. Single-parent households generally have lower levels of discretionary income. To reach this market, service providers will have to develop new service products that will appeal to this demographic segment at affordable prices. A third demographic change is the continuing growth in the number of people traveling for personal, rather than business purposes. Personal travelers are responsible for the increased percentage of the travel market in the past forty-five years and the growth is sure to continue. The fourth demographic change is the growth in the number of international travelers. One of the primary reasons is the decreased cost of transportation relative to income, making travel more affordable to everyone. 2. Changing Vacation Patterns- The traditional once-a-year vacation of two weeks or more is declining in popularity. For a growing number of people, vacations are

becoming shorter and more frequent. At present, more people usually plan minivacations, adding two of their annual vacation days to a three-day holiday weekend. 3. Market Segmentation- Segmentation is sort of grouping people with the same characteristics such as geographic, demographic, psychographic and productrelated characteristics. 4. Frequent Guest Programs- Because of proliferation of properties and the increasing competition among them, some lodging operators have begun to develop programs to gain repeat business. Modeled on the frequent-flyer programs which were successfully used by many airline companies, these plans give credits to regular clients. 5. Maturation in Segments of the Fast-Food Industry- As public tastes continue to change, food service operators will have to develop specialty products to retain an adequate share of the market. LEGAL ISSUES 1. Liquor Liability- In the past, there was a growing public concern over the increasing number of alcohol-related automobile accidents. Legislators have responded by lowering the levels of blood alcohol in which an individual is considered intoxicated and by increasing penalties on offenders. 2. Ethics in Tourism Industry- Ethics is an academic discipline that deals with the study of the codes of moral conduct practiced by individuals or groups. Business ethics refers to the application of a particular moral code to relationships, activities, and discussions made by individuals in business to distinguish right from wrong; to differentiate between ethical and unethical behavior. HUMAN RESOURCE ISSUES 1. Sexual Harassment- Sexual harassment may be defined as unwelcome sexual advances, request for sexual favors. Most cases of sexual harassments involve complaints by females about male co-workers or superiors. In the last ten years, the number of these cases has grown because an increasing number of women have become willing to speak out. 2. Employee Turnover- Employee turnover is one of the major issues confronting managers of tourism enterprises. With turnover rates averaging approximately 100 percent per year, managers are always faced with the problem of losing experienced employees as replacements. Many managers in the tourism industry understand the requirements to reduce turnovers. These include adequate wages and benefits, reasonable working conditions, reasonable work schedules, and reasonable treatment of employees by managers. 3. Employee Assistance Plans- One of the secular steps to pay attention regarding the problems of their employees. The tourism manager who establishes EAPs to benefit employees will eventually develop a more loyal work force. In addition, the manager who helps the employees will reduce employee turnover.

4. Employee Empowerment- In some tourism establishments, managers have developed rules and procedures that employees are directed to follow. These include directives, such as inflexible rules about checkout time; rule prohibiting free refills on coffee; strict limits on the number of hand towels per guest. These may affect the overall impression of a guest regarding a particular food service or lodging enterprise. Many owners and managers have realized the ineffectiveness of setting strict rules governing every details of guest service. Thus, they not set policies that are guest-oriented. They empower their employees to make decisions that will improve the quality of service to guests without having a negative impact on operations. OPERATIONS ISSUES 1. Automations- Process of using electronic equipment to complete some of all of the tasks associated with a given enterprise. Some of the examples are issuance of e-ticket for most airlines, online check in, and ease with communication. 2. Sanitation and Public Health- A very important issue in food service is sanitation. Everybody agrees that all steps be taken to prevent illnesses that are caused by the manner in which food is handled or to the food itself. 3. Recycling Solid Waste- In previous years, there has been a gradual closing of the landfills that were used for disposing solid wastes and a growing awareness of the harmful effects of either burning solid waste or dumping it into the sea. Many in the tourism industry have started separating recyclable plastic, glass, and other items from other solid wastes. CONSUMER AFFAIRS ISSUES 1. Fire and Safety- Fire and safety have always been important issues in the tourism industry. In earlier centuries, taverns, inns, and hotels which were usually constructed of wood, were regularly destroyed by fire. During the 20th century, hotels, motels, and other lodging establishments have instituted many changes among which are improvements in design and construction as well as improvements in the fire control systems installed in buildings. 2. Truth in Menus- For food service operators, preparing truthful menus is an ethical practice that should never be violated. It is important that those in tourism industry conduct their operations ethically in order that consumers will have complete faith in the truth of their menus, the wholesomeness of their food, and the honesty of their business practices. 3. Diet/Nutrition/Health- Since the public is very much concerned about healthy diets containing less fat and lesser calories, many food service operators are adjusting their menus to food for the diet conscious; others are assigning certain menu items for those interested in food that is low in sodium and cholesterol. An increasing number of restaurants exert efforts to attract health-conscious diners.