274 week 3 task
Objectives: Appraise the impact of different economic systems on hotel and restaurant globalization.
Reflection on weekly learning objectives
From the week’s PowerPoint notes, I will reflect through appraising the impacts of different economic systems on hotel and restaurant globalization. My reflection is on the various economic systems starting with the capitalist economy, which are commonly found in democratic countries. This system has less government interference and intervention in business operation and as such lets the hotel industry to exercise private ownership and management of hotels. This gives the hospitality the freedom to globalize without restrictions. Therefore, for countries whose economic system is capitalist, the hospitality industry has a goodwill that favors globalization. Secondly, in the socialist economy is where the government or cooperative groups run the hotels and the consumers have to use what is offered in the hotel, this economic system can profoundly hinder hotel globalization, given that there is no liberty and freedom.
Besides, there are mixed economies that may integrate several aspects of each economy stated above, and this economic system, to some extent, will allow for the globalization of the hospitality industry. The levels of economic development in these economies determine inflation, labor costs, and customer expenditure level in the hospitality industry. For the hotel industry to operate well, it is necessary to assess the level of economic risks before making a global expansion. Besides, there is economical both economic and multiplier impact on restaurant globalization. It is inherently depicted that the development of hospitality is considerably impacted economically in terms of destination and globalization. This is because the economic system in a destination country can create many opportunities for employment to their local population, yield more income to the natives and earn government more revenue as well as improving the destination facilities and infrastructure.
Article summary:
The article talks about how the hospitality industry is affected by globalization that it defines as a trend for integrating economic systems globally. In focus to the hospitality industry, it says, globalization has both negative and positive far-reaching effects. Firstly, it exposes the enterprise to different cultures, which directly impact on pricing on food and travel. It says that many people can now travel across the world at fair prices and is making the industry to experience diverse cultures which have made the hospitality industry to understand the culture and cater to its diversity. Secondly, the article says globalization has advanced technology. This gives the industry a competitive edge as they work towards its advancement in the industry products and service. Thirdly, the article advances that it develops lose out for countries by creating affordable and more comfortable travel ways. This implies that travelers can easily choose from a broader destination range leaves behind less develop economies that do not have the capacity for the technology required to welcome many travelers.
The article suggests that in improving travelers’ attraction, these countries need to strengthen their capacity for competing with other destinations that are tourist-friendly and luxurious. Additionally, the article concludes by stating the seasonal unemployment caused by globalization. It posits that for various reasons, individual towns, cities, and countries have periods of lows and highs activities of tourism as a result of events, price or weather which are specific to particular periods of the year. Moreover, it highlights that, during the high seasons, the hospitality industry has a lot of job opportunities for the locals; however, when the peak season is over, the jobs are no more. This trend leaves locals jobless and income less for a better part of the year resulting in poverty and unemployment more so in places that heavily depend on tourism.
Article source: https://www.torontosom.ca/blog/the-effects-of-globalization-on-the-hospitality-industry
Comments
I concur with the article since globalization exposes the industry to diverse cultures that it has to find a proper way of adjusting towards understanding and equipping or having a staff of different cultures. Besides, it is through globalization that technology gets to advance, so the hotel industry has to continue improving its technological knowhow to provide the best services and products that meet the current customer demands. Moreover, it is true that as a result of globalization, the hospitality industry has been made vast for the customer to choose from the available range of destinations, of which most travelers prefer luxurious hotels where they get the services they desire. However, it also right that globalization poses challenges to the hotel industry, such as unemployment created to the locals during the low season and more so like now when travels are banned. Most of the employees have been laid off and rendered income less, and this creates poverty.
Objectives: Assess the advantages and disadvantages of various market entry strategies in the hospitality industry.
Reflection on weekly learning objectives
From the week’s PowerPoint notes, hospitality corporations have six market entry modes, including joint ventures, consortia, sole ownership, strategic alliances, franchising, and management contracts. Sole proprietorship allows the hotel company to have control over its operations. On the other hand, it may get various incentives and other benefits. Joint ventures have the advantage of not hiring expertise in compliance and policy issues. However, this strategy sometimes faces the challenge of holding and control from the domestic country has 51 percent, and the foreign country having 49 %, but it is suitable for developing countries. Franchising has the disadvantage of sharing profits with the company whose brand name is used but has the advantage of making more sales through the use of popular brands. Management and contract companies’ strategy has the power of getting specialized expertise that makes it possible for the inexperienced in operating to profit levels.
On the other hand, this strategy sucks a lot of cash from the experts who may leave the industry at a point of need. The strategic alliance has the advantage of banding together, expand, and support their global presence. However, in cases where there are disagreements between the alliance team, the operation is halted. Finally, the consortia strategy has the advantage of marketing and service reservation and the autonomy in operation management. On the other hand, independent operators have highly competed with large chain hotels.
Article summary:
Article source: https://smallbusiness.chron.com/advantages-disadvantages-international-franchises-22488.html
The article talks about the pros and cons of international Franchises. It introduces by saying that successful franchising thoughts are changed into expanding new markets’ accessibility and opportunities for finance. It posits that businesses have not succeeded because of unaccountability to financial risks. It contends that this strategy has the advantage of new market exposure. Given that by internationally expanding franchises, the hotel industry can take advantage of an unfamiliar business model in the new market. Additionally, the article advances that it offers favorable business regulations irrespective of what the hospitality venture intends to expand, the business can have favorable regulations from governments. In many countries, this strategy does allow for saving on taxes by paying less that boosts the bottom line of the business.
The article presents one of the disadvantages of this strategy as a difference in culture that it depicts as a potential problem towards the expansion of other nations, which is hard to overcome barriers in culture. Given that each country has a culture and predicting it and how it can affect the hotel industry is easy, so going out of the home country requires thorough research. Besides, the article presents another challenge as compliance. The same way cultural diversity creates branding challenges, regulation, and laws for businesses vary across countries, and these affect every aspect of the undertaking, such as employee rights, benefits, and human resource policies. Eventually, this calls for arranging for hiring compliance and legal teams for international issues and operations. Additionally, franchising creates financial risks such as exchange rates that may cause undesired returns to the investment.
Comments:
It is true; franchising should be explored for additional financial opportunities and take advantage of unfamiliar business approaches from that of home. However, the article says that franchising offers businesses favorable government regulations, a thought that I tend to disagree with since countries’ laws may not at all times provide foreign investments favorable regulations but instead may find it hard and more so in the hospitality industry. On the disadvantages, I concur that franchising meets cultural berries that are not easy to overcome because projecting the extent to which it can affect the hospitality industry is not easy. Additionally, I agree with the article in compliance challenge because from the home country of a hotel to be franchised, policies and regulations differ from those of other countries. To overcome this challenge, the hotel has to incur expenses in training o hiring experts to assist in such cases.
Objectives: Describe issues related to international hotel development and design.
Reflection on weekly learning objectives
In describing issues that relate to international hotel development and design, there are several questions related to this aspect, such as cultural expectations on demand for offering quality and service in facilities of lodging. Emerging economies demand hotels of star rating two and above that are to be used in developing and designing hotels. To form hotels has seven phases. Besides, international hotel development and design require infrastructural development. Moreover, regarding design, many factors influence designing a hotel such as the physical environment, local culture, and factions to be served by the hotel. Besides, there are zoning requirements in most developed countries that dictate hotel development and design. I also learned that states have their planning policies that must be observed in building and designing hotels.
Moreover, the interior designs are mainly a reflection of the local cultural themes. On the same, land costs determine the building cots. More importantly, it is the environmental hazards associated with location and design. This affects the site selection that has to consider the potential effects of risks ranging from hurricanes, flooding, mudslides, storms, earthquake, among others. Moreover, trends which feature in eco-resort developments also relate to the international hotel development and design.
Article summary:
This article talks about how new trends affect hotel designs, and it begins by advancing that with continued globalization and travelers changing lifestyle, the urge for having new hotel designs is becoming a competitive advantage for the hoteliers and go beyond traditional lodging applications. It presents the following choices contemporary aesthetic designs that will satisfy the demand for modern technology and luxurious lifestyle that responds to current environmental concern awareness. The article contends that there should be lifestyle hotels versus box hotels to which, with growing hotel chains internationally given their expanse majority, was enabled by commoditization and standardization process. Moreover, the article contends that the concept of a new lifestyle has influenced the emotion, art, and hotel design and it presents the four main significant themes of new hotel designs including Exotic exclusivity, Ascetic modernism, Extravagant fantasy, and Nostalgic opulence
The article shows that based on the themes, chains and individual hotels are tweaking their designs for enhancing their brand values sand global hospitality recognition. It concludes that competition is heightened in across the world hotel market, and copying successful ideas is a feasible way of attracting new markets. Box hotels have adopted ingredients for lifestyle hotels. Besides, ‘Glocalisation’ – a combination of globalization and localization, has gotten its way into marketing policies of chain hotels and are adopting the slogan of thinking local and acting global.
The article posits that there is a need to strengthen the effective use of customer- relationship- management of databases as well as direct marketing to personalize services and products to increase loyalty, retention, and satisfaction. Additionally, hospitality staff quality will be the main success issue since the travelers search for more advice and recommendations; their training should not only be on information change management but also to match travelers’ experience.
Comments:
It is true that trends brought by globalization have changed lifestyle and will continue to improve, and this pushes for new and modern hotel designs, which are a competitive strategy. Hotel designs are expected to be of luxurious designs and are mindful of environmental welfare. It is true that with modernization processes, the designs are highly influenced by contemporary lifestyles. The modern features comprise exotic exclusivity, ascetic modernism, extravagant fantasy, and nostalgic opulence. I think that based on the themes, chain and individual hotels are tweaking their designs for enhancing their brand values sand global hospitality recognition. I also agree that not only models will retain the customers; the hospitality industry should heighten their customer management and personalize products and services and increase customer satisfaction and traveler experience.