Challenges of Hotel and Resorts Industry-Free-Samples -Myassignment

Question: Challenges That the Hotel and the Resorts Industry is Facing Today. Answer: Introduction The resort and hotel industry has minted huge success to the hospitality industry. The growth has successfully contributed in the local economy as well. However, the nearing future has brought ample of challenges to the industry. They have been challenged to maintain a steady growth. The situation is challenging because of various factors; however, innovation is the one common factor, which is pulling competition in the market. Various new concepts such as Airbnb have brought mounting challenges ahead of reputed hotels and resorts (Oskam and Boswijk 2016). The main purpose of this assignment is to analyze the challenges that are there in the hospitality industry now. Brief of resort and hotel industry Resorts and hotels are little different to each other in terms of luxuries that the both offer however, they are similar in terms of factual thing. They are both offering the lodging facilities; however, there is a significant difference in between the two concepts. Hotels use to be in a building format. On the other hand, resorts are those luxury lodging places, which are built up near to attractive places such as the beaches. It is like offering personal ambience to the visitors. Both the concepts are in huge pressure because of Airbnb (Neeser, Peitz and Stuhler 2015). Effect of industry on the local economy The success of hotel resort industry does also influence the local economy. It does so in numerous ways. An incrementing number of hotel and resort booking mean an increasing number of visitors. In other words, the hospitality infrastructure is supporting the tourism industry by providing lodging facilities to the visitors. Both the foreign and the local visitors plan their trip by also booking their selected lodging facilities in advance. This trend is beneficial for both the hospitality and the tourism industry. Nevertheless, this will also improve the local economy by bringing more business to country (Zaei and Zaei 2013). Current trend in relation to business progression The future of hotel and the resort industry looks very challenging because of several reasons such as the use of innovation in offering. Services such as Airbnb have significantly driven the interest of significant number of customers towards it. The concept looks interesting to many because it is fast easy and it offers a home like experience in attractive locations. Customers are just needed to book their choice of rooms in the website of Airbnb. The rooms offered to them are not like the hotel room; however, those rooms are far better than the hotel rooms. They are actually big homes owned by others. Customers book such rooms for a long period, which is one of the specialties of the services offered by Airbnb (Zekanovic-Korona and Grzunov 2014). Challenges ahead in nearing future Innovation is perhaps the biggest challenge. It is innovation that has given birth to services like Airbnb. Airbnb has enhanced the concept of shared economy, which is significantly hampering the business of hotel resort industry (Zervas, Proserpio and Byers 2014). Labor shortage is the other challenge, which has not only worried the hotel industry but it has influenced the other industries as well. The growth of tourism in developing and the developed countries has produced the requirement of sufficient labor at the workplace. However, it is also a challenge to find an adequate number of talented professionals (Phillips et al. 2017). Strategies used for countering the challenges The changing trend for the hospitality industry has encouraged the industry to use some strategies in order to counter the challenges. Travel planning apps is one of those, which will help customers book the flights and accommodation in the choice of place. They are now heading to online channels to offer customers book their tickets. The step is just to match the innovative level, which was missing significantly. They have now understood that guest data will be important to understand the preference of customers. Furthermore, this will open up ways to some other innovation (Guttentag 2015). Conclusions The hotel industry is comprised of both the hotels and the resorts. Both are different to each other in terms of infrastructure; however, they both satisfy more or less the same need. The hotel industry is one of those sectors that have contributed significantly in the local economy of any country across the globe. However, the future looks very challenging indeed. This is because of various reasons such as the use of innovation in the services. The advent of Airbnb has significantly affected the business of traditional hotel industry. The one very evident difference between the two kinds of services is the use of innovation that has favored the later service. It is indeed required to put some show by innovating with the services in order to compete with the rising threat in the form of Airbnb. Recommendations to counter the challenges Following are the list of recommendations for the hotel industry to stay competitive in the future: It is required to convert hotel into a data platform, which means mapping up the entire guest journey. The data will help them to improve their customer experience Be innovative with the services, designs and the surrounding background. People especially the Millennial prefer to be in an accommodation place where they are introduced to local culture through the food menu, the staffs and the surrounding ambience. References Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism accommodation sector.Current issues in Tourism,18(12), pp.1192-1217. Neeser, D., Peitz, M. and Stuhler, J., 2015. Does Airbnb hurt hotel business: Evidence from the Nordic countries.University Carlos III de Madrid dissertation. Oskam, J. and Boswijk, A., 2016. Airbnb: the future of networked hospitality businesses.Journal of Tourism Futures,2(1), pp.22-42. Phillips, P., Barnes, S., Zigan, K. and Schegg, R., 2017. Understanding the impact of online reviews on hotel performance: an empirical analysis.Journal of Travel Research,56(2), pp.235-249. Zaei, M.E. and Zaei, M.E., 2013. The impacts of tourism industry on host community.European journal of tourism hospitality and research,1(2), pp.12-21. Zekanovic-Korona, L. and Grzunov, J., 2014, May. Evaluation of shared digital economy adoption: Case of Airbnb. InInformation and Communication Technology, Electronics and Microelectronics (MIPRO), 2014 37th International Convention on(pp. 1574-1579). IEEE. Zervas, G., Proserpio, D. and Byers, J.W., 2014. The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry.Journal of Marketing Research.