Globalization and the International Hospitality Industry

Document Type:Essay

Subject Area:Economics

Document 1

Ideally, globalization might lead to insipid hotel images where hotels tend to be similar wherever they are situated. They might lose their local exclusivity as well as authenticity. Globalization is a fundamental issue in regard to the hospitality sector. The aspect of globalization has become a critical concept in today's business, political as well as economies. Evidently, the hospitality sector is frequently regarded as one among the most global within the service sector. The conceptual paper would critically analyze the concept of globalization, highlight several impacts that it has on international hospitality, outlining various arguments for and against the concept among other facets. Focusing on the hospitality sector in a particular environmental setting, the general impact of globalization comprises of far-reaching consequences, that have been both positive and negative. Whenever hotels flag their own properties in a totally different new country, they need to localize their services and products so as to adapt the cultural traditions of that particular country. In addition, the global strategy, as well as differentiation strategy, are useful for hotel companies to become extremely competitive in the global environment. Companies might also utilize a prominent strategy known as; "Thinking global and acting local" (glocal). As noted earlier, the hospitality sector is frequently considered as one among the most global within the service sector. In the contemporary world, many people are constantly traveling around the world (Knowles, 2004 p. The moment such persons are quite far from their native homes, they end up spending in hotels, eating from them and staying in them as well.

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As a result, the hospitality sector comes in in this particular situation. Due to the increased number of tourism and business activities around the world, globalization has been of great importance. According to some researchers such as Go & Pine, the hospitality industry is a subsection of tourism and the travel sector and one among the utmost swiftly intensifying fields within the service industry. Globalization has several positive impacts on the hospitality sector including exposure to varied cultures, availability of large marketing sites, technological advancement among others. The existence of globalization enables managers of the hotel industry to be in a position to learn about diverse cultures as they try to mingle with other individuals from several regions of the world. As a result, this concept greatly increases their knowledge and cultural awareness (Yu, 2014 p.

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As different categories of persons having varied cultures visit other countries of the world, intercontinental countries, there is a need for the hotel managers and attendants to learn more about their cultures in order to offer them the best services. This increases their opportunities for gaining more profits. Accordingly, several hotel companies usually "go global" essentially because they wish to realize a superior customer base (Sugiyarto, 2013 p. A great number of big hotels including Grand Hyatt and Hilton are surviving even during extreme economic crisis since they have globalized. Technological advancement is also associated with globalization. Since individual aims at attracting a large number of tourists, hospitality organizations persistently require upgrading and improvement of their products and services. As a result, several global hotel companies establish their main procurement department for the essence of signing international contracts with a number of suppliers.

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Globalization is also linked to the creation of more job opportunities. Due to globalization, many international visitors come into the country and therefore many hotel attendants are required to serve and cater to their desires and needs. As a result, globalization has necessitated the creation of additional job opportunities for individuals who are within the hospitality industry. These additional attendants offer best services to these foreign visitors thereby improving their living styles. According to Rutihinda and Elimimian, standardization calls for operating with firm constancy, offering the same items and in similar ways every place, while on the other hand, localization requires one to adjust his/her products as well as a way of doing things in each place. In other words, this is to say that hotel firms have to "think in global manners but act in terms of local".

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For those hotel companies getting themselves into the global market, the aspect of thinking globally but acting locally has become very critical to them regardless of the size of the hotel, whether big or small, it has to adopt the concept so as to remain competitive in the global market. In addition, globalization has continued to have negative impacts on the industry of hostel business. In the global market, the cultures are different and diversified (Roper, et al, 2010 p. In conclusion, Globalization is a very critical issue in the industry of hospitality. It is a process in which the companies which are running hotels expand their enterprises as well as their operations to include also the foreign markets thus taking their businesses higher levels than ever. Globalization makes it possible for the hotel firms to decide locations anywhere in the world where they would establish their business.

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In the case the enterprises they do expand, the industry of hospitality would also expand too. Globalization has assisted the hotel firms to acquire another new market share hence increasing their income as well as reducing the cost of purchase by buying their input materials through bulk. Diversity management strategies of global hotel groups: a corporate web site- based exploration. International Journal of Contemporary Hospitality Management 23. Knowles, Tim, Dimitrios Diamantis, and Joudallah B. El-Mourhabi. The Globalization of Tourism and Hospitality: A Strategic Perspective. ed. Global tourism. Routledge, 2012. Roper, Angela, Maureen Brookes, and Anne Hampton. The multi-cultural management of international hotel groups.

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