CURRENT TRE} NDS AND AND HOSPITALS qe Bright Future of Tourism In recent years, a number of changes have occurred th industry: These are: at sugge: SIN THE INDUSTRY OURISM a oon social and economic a bright future for the tourism 1. Early retirement — age than was the mal oe many workers retire at earlier system provides benefits to ae years. The social security age and many employee reti rkers as young as 62 years of years of service rather tha rement programs are based on grams, specificall t than on age. In some retirement pro- work twenty-five o Fa programs, it is possible to efits at th or thirty years and receive retirement ben- e age of 55 or younger. The increasing number of people who retire early is beneficial for the tourism industry ree 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. This is in contrast to earlier generations when the average life span was much less. 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 — In the past, the six- day workweek was the standard for most working people. At present, the five-day workweek is standard and the four-day workweek is becoming com- mon — leaving several days for other activities. The resulting increase 1n lei- sure time, combined with faster and easier transportation makes possible for many individuals to take weekend va- cations and travel toa degree they could not have made a few years ag0- The Longer life spanfe PRINCIPLES OF TOURISM (Part |) tourism industry will uray benefit from this increase in trave!. 4. Greater disposable income - The alee age family has more money to spe! than before. This is due to higher wages and two-earner households. A large portion of the additional dis- posable income is spent on consumer goods and ser- vices. The tourism operations receive an important share of it, 5. Greater mobility - Improved “ roads and better transporta- Smaller families tion make it easier to travel every year. The modern high. way system has reduced the time required for automobile travel between any two points. New planes use new tech. nologies, which enable them to carry more passengers while using less fuel. These increases in travel have a positive im- pact on tourism sales. 6. Smaller families — The average family size has decreased, Thus, it is easier for the family to travel and travel costs less if few family members travel. Issues in Tourism ales ard fo a number of issues ha i i ome have been issues for many years butno final solutions have oe brought about by social, economi, found, Others are emerging issues . = mic, and technological change, ese issues can be categorized unde: ms r the following headings 2. LegalCURRENT TRENDS ‘AND |S: AND HOSPITALITY hts TOURISM 173 4, Operations 5, Consumer affairs marketing Issues rketing i Piensa are changing demographics, changing a tion in segments fice frequent guests programs, matura of the fast-food industry, and consolidation. changing Demographics The population of developed countries is aging. The median is now years and is projected to increase in the coming years. This is an issue that is significant to the tourism industry. an older population has preferences that differ from those of a younger ulation. Thus, service providers will find it necessary to adjust their service products to the changing preferences to the market. Single-parent household 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. Ps, baa A third demographic change is the #, continuing growth in the number of people traveling for personal, rather “9% than for business purposes. Appro- * ximately 74 percent of domestic _ « travelers travel primarily for a eran nonbusiness purpose. This group is responsible for the increased rcentage of the travel market in the past forty-five years and the growth is sure to continue. The fourth demographic change is inthe number of international travelers. One of the primary reasons is174 PRINCIPLES OF TOURISM (Part |) the decreased cost of transportation relative to income, making trayey more affordable to everyone. Another is increased vacation time ang A greater number of holidays in many countries. Changing Vacation Patterns Citizens of industrialized countries are changing their 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 mini-vacations, adding two of their annual vacation days toa three-day holiday weekend. In this way, they manage to get away fora mini-vacation of five ways while using only two actual vacation days. Market Segmentation Since 1980, the principal term in tourism marketing has been market segmentation. Until the late 1970s, lodging establishments attempted to appeal to broad, general markets. Their aim was to appeal to a broad group of potential visitors. In recent years, the success of the limited service properties has led to the development of other properties intended to appeal to selected market segments. Some of the types of lodge properties to become apparent include all-suite properties, residence properties, sub-budget properties, and a variety of budget properties which differ by their varying services and amenities. Examples of market segmentation have been evident in food service in the past ten years. A number of restaurants that additionally offered extensive something-for-everyone menus have begun to see reductions in business as customers have chosen to patronize restaurants offering specialized service products. As new market segments are identified, Properties designed to appeal to those segments are likely to be developed. Frequent Guest Programs Because of the proliferation of Properties and the increasing competition among them, some lodging operators have begun to develop programs to gain Tepeat business. Modeled on the frequent- flyer programs which were Successfully used by many. airlineCURRENT TRENDs AN; AND HOSP! ompanies, a Plans give credits to regular guests. They can be edeemed in the form of reduced Tates, upgrades, free accommodations, ree meals, or any of a variety of amenities, As competition becomes gener, the number of these kinds of programs will eine grow. Many selieve that these programs will gain in the lodging business the same avor they have achieved among airline customers. D ISSUES IN THE 175 ITALITY INDUSTRY Maturation in Segments of the Fast-Food Industry Segments of the fast-food market are no longer expanding to the extent that was formerly possible. The demand for hamburger is not growing as fast as it once did, so operators find it necessary to develop new products to maintain the desired sales levels. At present, establishments that previously offered few products other than hamburgers now offer pizza, salads, poultry, or other meat products. As public tastes continue to change, food service operators will have to develop specialty products to retain an adequate share of the market. Consolidation in the Commercial Lodging Industry Some experts are now predicting that the number of large, nationwide lodging companies will decrease in the coming years; that a small number of firms will dominate the lodging industry by acquiring smaller chains of regional or national properties. This will enable successful companies to obtain the funds required to expand their operations internationally. : The trend toward consolidation will have a tremendous impact onall commercial lodging operations. Both independent operation and owners of smaller chains will find it difficult to compete with heavily.advertised national and international brands. Legal Issues The legal issues are liquor liability and ethics in the tourism industry. Uquor Liability In the past, there was a growing public concern over the increasing number of alcohol-related automobile accidents. At Present, alcohol and the use of drugs is a factor in more than half of all automobile accidents. This led the public to pressure state legislatures to act. Legislators have responded by lowering the levels 5,176 PRINCIPLES OF TOURISM (Part |) of blood alcohol in which an individual is considered intoxicateg and by increasing penalties on offenders. In addition, Several states have imposed new regulations on the serving of alcoholic beverages, In one state, new regulations have made the discounting of the prices of drinks — the so-called happy hour — illegal. In several states, establishment and their owners can be held financially accountable if they serve alcoholic beverages to an intoxicated individual who causes damage or injury after leaving the establishment. In some places, this has caused tremendous increase in the cost of liability insurance. This prompted some bar owners to go out of business, It has also caused some restaurant owners to stop serving beverages, Some restaurant and bar owners have changed their market strategies. They now feature and promote non-alcoholic drinks. As societal attitudes toward alcoholic drinks continue to change, it will be necessary for food service and lodging operators to adjust. Ethics in the 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 ode to relationships, activities, and discussions made by individuals in business or industry. It is the code that enables the individual in business to distinguish right from wrong; to differentiate between ethical and unethical behavior. Ethics in the tourism industry has been the issue for thousands of years. The business practices of some operators of tourism establishments are questionable. For example, a manager of a new restaurant may hire twenty waiters but intends to keep only the twelve most able after the second week of operation. An owner may fail to report all sales on his income tax returns, A tour guide may cheat on his income tax by failing to report all his tips. Another owner may cheat on his taxes by charging personal expenses to the business. An employee in the purchasing department May accept gifts from vendors in return for buying inferior products. Busi ics i likely to remain forever in the list of fae issues, ness ethics is Human Resource Issues Some of the human resource issues are sexual employee n harassment i turnover, employee assistance plans, and employee eiporecalCURRENT Try EI AND HOSh SSUES IN THE 1 sexual Harassment ALITY INDUSTRY URIS tad Sexual harassment requests for sexual fay, may be defined ‘Ors, sexual nature that take pl and othe: : ‘ace under 1, Submission is made aco a a bales sexual advances, an Tbal or physical conduct of a 'Y of the following conditions: nditior ,, 2, Submission to or ran N of the person's employment Most cases of sexual harassment involve complaints by females ao ee or superiors. In the last ten years, the number of these as grown because an increasing number of women. have become willing to speak out. Because employers are liable for the actions of their employees at work, it is very important for employers to take the following steps: 1. Institute a strict policy banning all forms of sexual harass- ment in the workplace. 2. Develop appropriate training programs for managers and employees so that all will understand and become sensitive to the nature of sexual harassment. 3. Establish procedures for handling all complaints promptly, fairly, and in a sensitive manner. Employee Turnover Employee turnover is one of the eect rt of tous ; turnover ral ee ae a are always faced with the problem of losing Fenced employees and hiring less experienced employees as replacements. Faced with inexperienced a OB Managers believe they have only two Listed race ae training costs associated with developing EN see Workers or to incur the equally high costs ioe that there is a third With untrained employees. Very few a reduce turnovers. altemative — to retain valuable employees 2”178 PRINCIPLES OF TOURISM (Part |) 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, However, few managers put these requirements into practice. Several managers and employers still treat employees as if they were parts of a big wheel rather than people. They hire workers at the lowest possible wages, fail to provide proper training, then scold them for not doing their work correctly. They assign workers’ schedules without taking into account the workers’ personal preferences, change the schedules of the workers without previous notice, and order them to report for work on their day off. Then, managers complain about employees who resign to accept equal jobs with other employers. Employee Assistance Plans Employee assistance plans (EAP’s) are included in the discussion of major issues in the tourism industry because they are one of the secular steps to pay attention regarding the problems of their employees. The problems of those employed in the tourism industry include psychological problems, family issues, financial problems, legal issues, health as well as educational issues. The tourism manager who establishes EAP’s to benefit employees will eventually develop a more loyal work force, one that is willing to make a great effort to attain the operational goals of the enterprise. In addition, the manager who helps the employees will reduce employee turnover. Employee Empowerment 2 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; or directives prohibiting substitutions on special dinner menus. These may affect the overall impression of a guest regarding a particular food service or lodging enterprise. For some guests, these rules may be enough to make them decide never to return.CURRENT TRI worm ORo * Many owners and managers have realized the ineffectiveness of cating strict rules governing every detail of guest service. Thus, they now 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 The operation issues include automation, smoking / no-smoking areas, sanitation and public health and recycling solid waste. Automation Automation is the process of using electronic and mechanical equipment and machinery to complete some or all of the tasks associated with a given enterprise. The two primary reasons for automating an enterprise are: 1. To increase the speed of work 2. To reduce the cost of work Computer Reseroation System Automation in the travel industry is here to stay. Computerization will affect the industry principally in three areas namely: ‘ 1. Communications—Business travelers frequently change their itin- eraries to suit their changing requirements. Much time at present is lost in making alternative arrangements through vendors or180 PRINCIPLES OF TOURISM (Part |) istributors from pay phones, hotel rooms, or secretarieg | Portable Ceearanition Data Units (PCDU's), a pop. table telephone or computer allows a business traveler to com. municate with any travel entity from any place including air. planes and rearrange or reconfirm his travel plane. 2. Interactive CRT’s — Interactive television is now being used in some cities. Within a few more years, more cities will be Using it. It is possible that much of the order placement process wil] be shifted to interactive television. Specific order forms can be programmed into a database that can be accessed by any num. ber of users. If calls are reduced to one-third by interactive CRT's, travel counselors will be reaching productivity levels of $ 2.5 million to $5 million per annum each. Hence, the cost of get- ting a traveler on an airplane, into a hotel, ora car is highly reduced and the profitability of the distribution system as well as the cost to the traveler is maximized. » Elimination of Tickets - There is no longer a need for the traveler to carry an actual document from an airplane seat or a hotel reservation. A traveler may place the order about his impend- ing trip on his interactive television, insert his travel card into the apptopriate slot on the side of the console. After all arrange- ments and confirmations have been made, the computer mag- netically codes his card. The traveler arrives at the airport, goes to the appropriate gate, and as he enters the airplane, right be- fore he hangs up his carry-on bag, there is a slot into which he simply sticks his card. If the response is positive, he presses a button and a receipt pops out of the wall. One of the biggest problems of agents today is how to find the most efficient way to deliver the traveler’s documents. The elimination of tickets is the biggest impact on the distribution system because the role of the agent as a trustee is eliminated. Consequently, the order-taker-only agent will also be eliminated. At present, some food service and lodging establishments have automated to the extent that guests and customers no longer have direct contact with any staff member. There are lodging operations in which a guest inserts a credit card in an electronic device, enabling him to check in without speaking to the room clerk at the desk. Check out canCURRENT TREND S AND Iss AND HOSPITALIEE busty 181 be tend, a Screen on the television set in the ag erages can be taken from vending machines. It is interesting to note sstablishments have tended to that food service and lodging even though automated devices have been installed. For example, some hotels with automatic elevators have continued to hire ersonnel to run the elevators, Guests are still given a high level of service using more modern and efficient equipment than the older manual elevators. The techn jie ‘ological capacity to automate grows daily and the tourism industry will have to determine the extent to which it should use the technology, $moking/No-Smoking Areas As more and more customers of tourism entities demand smoke- free areas for dining and smoke-free sleeping accommodations, the industry will continue to exert efforts to meet these demands. This is specifically true in places in which legislation orders that appropriate facilities be made available. Hence, restaurants apportion sections of their dining facilities to accommodate the requests of non- smokers. Some even install or improve ventilation equipment. Many lodging establishments have set aside accommodations fornonsmokers. In some hotels, smoking is prohibited in the lobbies, corridors, elevators, and other areas. Airlines have also established nonsmoking areas. The prohibition of smoking in tourism enterprises is an issue that is of increasing importance to owners and managers in the coming years, 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. Proper food handling has always been an issue ; ithe industry. Managers must always check to be Sure that food is bought from responsible vendors. mustbe kept at suitable temperature to prevent the growth of bacteria. It should be placed under i182 PRINCIPLES OF TOURISM (Part |) i stati y i s or rodents. The er conditions to prevent infestation by insects os re a ‘of equipment must be cleaned very well to one Pel fon is not contaminated during preparation. Washing a neck rh 2 service suchas the washing of the hands of the emp! ee i ig of the fresh food to remove chemical residue as well a e thorough washing of china, glassware, flatware, pots, and pans that are used in the preparation and service of food and beverages. National and local governments apply strict sanitary standards to food and beverage Salone Some conduct regulat inspections and apply sanctions on those found violating the regul arta The sanctions range from imposing fines, publishing lists of viol ators in newspapers, and closing the establishment of consistent violators, To ensure compliance with local sanitary codes, many food and beverage operators hire consultants to conduct regular inspections and to help in the immediate correction of any violation. As consumers become more aware of the potential harm brought about by improperly handled food, preventing possible violations of local codes will be a significant issue to food and beverage operators. 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. This has resulted in major waste disposal problems in some places. In some cities, the cost of removing solid wastes is increasing to the extent that government and citizens are unable to pay. In many of these areas, separating recyclable Plastic, glass, and other items from other solid wastes greatly decreases the quantities that require disposal. This trend toward recycling is likely to i i This | ly to increase. Many in the tourism industry who have not been Previously affected by this issue will eventually find it necessary to adopt a recycling program. Consumer Affairs Issues The consumer affairs issues are fire and i and diet /nutrition/ health, SesCURRENT Tp, ENDS AND AND Hohe SSUES tn Fire and Satety SPTTALITY ibe TOURS 183 Fire and safety hay, 7 e always beens ff wi Flat” wed hotels which were pee » Were rey, : were | i ‘4 tothe ground anda larger coat eer rey Bie. pani or crippled. iber of People were killed During the twentieth century, establishments have instituted improvements in desi, in the fire control Systems inst, i electronic smoke d. ae —- Motels, and other lodging. ‘any changes among which are 8n and construction as Well as improvements buildings, Examples are ‘etectors, automatic sys non fi Sree tems to summon fire departments, better sprinkler 5 ‘stems, d i and systems, people became safer, t et However, a number of be considered. In case of burning of furniture, fixtures, and fibers produced from man-made materials. In a fire, many of the artificial fibers used in wall coverings, carpets, draperies, and upholstery produce toxic fumes that can be more dangerous than fire, Another problem is related to construction. In recent years, new buildings were well insulated to decrease heating, and cooling expenses. In some buildings, windows were not designed to be opened. Temperature and air were controlled by very complicated central systems. In case of fire in such buildings, there is a danger that smoke may spread rapidly throughout the building. At present, individual room ventilation is installed to preempt the danger. Truth in Menus For food service operators, preparing truthful sates is = tees Practice that should never be violated. However a small minority have Prodi that are not accurate indicators of thy toot oe os menus ts, Some serve US. Choice beef when ie sites US. Prine beef. Others En ee al the number listed in the ee and havesubstituted one product ingredients suggested vercken, margarine for biter, genetic Products for name brands, and domestic products for imported ones. lucts for name 5184 PRINCIPLES OF TOURISM (Part I) Trutful menu In some areas, consumer production laws have been passed so that those who violate the regulations risk fines and loss of licenses, It is important that those in the 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. 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 the changing public tastes. Some are devoting sections of 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. Some have eliminated unhealthy food from their menus. The trend to healthier dining will surely continue. Successful food service operators will have to give greater attention to the nutritional content of food in the years to come. THE FUTURE OF TOURISM AND HOSPITALITY The World Travel and Tourism Council forecasts that travel and tourism will grow at 40 to 50 percent in the next ten years, This tremendous ate Presents great challenges and career opportunities for today’s tourism and hospitalit raduates. According to John Naisbitt, the futurist, the global ecmnoaay of theCURRENT TRENDS AND ISSU “cs AND HOSPITALITY inoucie TOURISM 185 went irst century will be : industries namely telecommunications ele super-service travel and tourism. The following tourism andl ion tec hnology, and put few examples of the wave of the future: Ospitality items are 1, Increased speed and a : oped counted ShoPping-use ofthe Internet in devel- Extended reach in less-developed countries Improved security of personal information Robotic labor sources "=e? + Reservation systems with more sophisticat ice acti artificial intelligence i Sirvolcactvaes Improved navigational systems for rental cars 7. Electronic entertainment venues in rental cats and on planes and cruise ships 8. Upgraded Internet personal digital assistants for operations. 9. Marketing mass customization. 10. Comprehensive branding campaigns for large and small operators 11. Virtual online customer communication 12. Just-in-time seats / ‘rooms /cars inventories 13. Electronic travel agents 14 Blended hybrid accommodations 15, Global anti-terrorist microchip security systems 16. More nutritional fast-food offerings 17. Emphasis on eco-tourism 18. Improved customer relationship marketing information al are likely to affect the future of the touri “tality industry. These are early retirement, e tourism and hospitality week, greater disposable income, Several social and economic changes longer life spans, shorter worl greater mobility, and smaller families. Many of the issues —186 PRINCIPLES OF TOURISM (Part |) : i itality managers can p, i by tourism and hospi poo ee oa namely, marketing, legal, human resource classified into five are: ing, | rire i irs. Marketing issues include changin, operations, and consumer affairs. ovarketsegmentsge® i i i terns, aphics, changing vacation patt mee programs, maturation 1n the segments of the fast. i ; and consolidation in the commercial lodging industry sepa include liquor liability and ethics in tourism. Human resource issues include sexual harassment, employee turnover employee assistance programs, and employee empowerment, Operations issues include automation, smoking / no-smoking areas, sanitation and public health, and recycling solid waste. Finally, consumer affairs issues include fire and safety, truth in menu and diet /nutrition/health. Travel and tourism will grow tremendously in.the global economy of the twenty-fifth century. 1. Identify the social and economic changes that suggest a bright future for the tourism and hospitality industry. Discuss each. 2. Discuss the specific issues in the following areas: a. marketing . legal human resources aos |. operations e. consumer affairs 3. Give the reasons for automating a tourism enterprise. 4. Discuss the steps taken by employers to prevent sexual ha- rassment in the workplace. 5. Identify the steps taken by owners and managers of tourism establishments to address the major issues confronting the tourism and hospitality industry, 6. Explain the future of tourism and hospitalities in the next ten years,CURRENT TRENDS AND ISS UES 187 AND HOSPITALITY 1 Mee TOURISM Carlzon, Jan. Moments of Truth. New York: Harper and Sons, 1997. Coltman, Michael C. Introduction to Travel and Tourism. An a, Approach. New York: Van Nostrand Reinhold, Dittmer, Paul R., and Gerald Griffin. Dimensions of the Hospitality prsiitl An Introduction, New York: Van Nostrand Reinhold, Haas, Irvin. America’s Historic Inns and Taverns. New York: Hippocrene Book Inc., 1997. Hudman, Lloyd E., and Donald E. Hawkins. Tourism in Contemporary Society. Englewood Cliffs, New Jersey: National Publishers Book Prentice Hall, 1997. Lattin, Gerald W. The Lodging and Food Service Industry. Michigan: Educational Institute of the American Hotel and Motel Association, 1997. Lundberg, Donald. The Tourist Business. New York: Van Nostrand Reinhold, 1997. McIntosh, Robert. Employee Management Standards. New York: Van. Nostrand Reinhold, 1997. Morrison, Alastair M. Hospitality and Travel Marketing. New York: Dalmar Publisher Inc., 1997. Seaberg, Albin. Menu Design. New York: Van Nostrand Reinhold, 1997. Tanke, Mary L. Human Resource Management for the Hospitality Industry. New York: Delmar Publishers Inc., 1997.