A Review of a Dynamic and Changing Industry - Report Example

Section/# Tourism and Hospitality: A Review of a Dynamic and Changing Industry The following discussion will seek to provide the reader with an overview of the hospitality industry; with a special level of focus on the changes and dynamics of the industry that are currently represented – as well as those that are expected to be represented in the coming years. Through such a unit of analysis, the discussion will be able to provide a more dynamic understanding of the shifts that will take place and how the hospitality and tourism industry can stay ahead of consumer demand and provide an even further of profitability to this rapidly growing sector of the economy. It is without question that the tourism industry throughout the globe has remained relatively resilient. Whereas economies around the globe have cut back their levels of growth and expectation for subsequent and future fiscal years/quarters, the tourism industry around the globe continues to exhibit steady and strong growth in excess of 3% and almost each and every market that has been analyzed. Within this understanding, many scholars and economic forecasters appointed to the fact that this particular service industry stands a great chance of monumental growth and development within the next decade. However, like many economic forecast, the overall level of belief that can be attributed to this must be somewhat abated. As with any form of investment with potential future return, many individuals have sought to integrate with the tourism market as a means of engaging in perspective profits within the very near future. Even further simplifying this equation, many onlookers to the growth and development of the tourism industry have points to the fact that tourism development is essentially nothing more than deciding what to build and where. Although this is of course a bold and overly simplistic statement with regards the way in which an entire industry will grow and develop within the coming years, there is a certain degree of reliability and truth to the aforementioned statement that has been referenced. As a means of understanding the way in which this statement both applies and does not apply to the world in which we live, the following analysis will be concentric upon discussing the ways through which the tourism industry accommodates and does not accommodate such a simplistic oversimplification of planning for future profitability. Therefore, it is the hope of this author that such analysis will bring a further level of understanding with respect to the way in which the industry should develop and the actionable decisions that should be made based upon the relevant information at hand. Firstly, in understanding the drawbacks that the overly simplistic statement represented within the introduction denotes, it must be noted that nowhere within this description of how tourism development planning should take place is there referenced a discussion of the fact that the economic trends within the market are not guaranteed to continue to exist perennially. In short, any individual with a working knowledge of how the economy operates notes that key factors within the global market can increase or decrease the level of profitability that a given sector might be able to enjoy in any given year. Circumstantial evidence of this can of course be presented with regards to the way in which many individuals within the natural gas producing nations around the globe state the future of their nations and economic wealth that they might hope to effect within the immediate future upon the belief that all market conditions will remain constant. However, beginning around the year 2004, it was noted that global natural gas reserves were in fact much larger than anticipated and the price premiums that had been paid for this natural gas plummeted. Although it may seem as something of a stretch to compare the way in which the natural gas market change in the way in which the tourism industry may change, it is nonetheless a salient point to consider the fact that the economic trends within the global market do not allow anyone industry to expect a period of sustained economic growth with no threats which might undercut this potential growth in the future. By comparison, the statement of the fact that tourism planning only involves deciding what to build and where represents a great deal of strength and for Rhapsody as well. For instance, the PESETL analysis, and economic analysis that focuses upon the political, economic, social, technological, environmental, and legal ramifications of the business world, it can be clearly noted that a focus upon deciding what to build and where is contingent upon determining how each of these key factors is represented within a given market (Cetron et al. 99). For instance, even though it might be understood that the tourism industry in many parts of the world is expected to see a marked increase, as compared to the anemic level of growth that has been experienced in many parts of the world as a function of the ongoing economic malaise that has taken place over the past 7 years, this is not guaranteed. Further, such a bold statement is pinning one’s hope upon unknowns including the full economic, social, technological, environmental, and/or legal ramifications of expanding tourism planning and development within such a region. Likewise, within such a level of consideration, it must be understood that the role of the tourism planner cannot be constrained to merely to deciding what build and where. The dynamics of the individual market, the legal constraints that a particular region/nation may impose upon the developer, the environmental shift that may be occurring within a given region and the extent to which green and renewable energy/building material is enforced, represent only a few issues that must be engaged. As such, it is a gross and egregious oversimplification to merely state that the role of the tourism planner is merely deciding what building to build upon what particular piece of land. Another aspect that the overly simplistic definition referenced above does not adequately capture is with respect to the fact that the tourism planner is ultimately responsible for understanding and responding to the team market trends and ate of the individual consumer. When one considers a few decades ago, the tourism planner have little concern with regards to the fact of locally grown food, the necessity of preserving the local environment, or the need for representing the culture to the end tourist in question. However, within the current model, consumer tastes have shifted away from representing a universal tourist experience and if focus more upon the necessity of engaging with the environment, utilizing local resources, and becoming acquainted, at least on some level, with the local culture. Within such a level of determinacy, it is clear and patently obvious that merely deciding to observe and execute the responsibilities of a tourism planner based solely upon deciding what to building where is a gross oversimplification and will likely result in a situation in which whatever tourist attraction/accommodation is built will immediately begin to suffer from the more nuanced ways in which differing aspects of consumer tastes and the regional/global/local economic environment factor in to the way in which business is ultimately performed. One of the most definitive changes that has recently impacted upon the tourism and hospitality industry is with respect to the renewed interest and focus on renewable resources and green energy. For instance, a litany of hotels and tourism destinations around the globe have sought to market their goods and services to potential consumers based upon the overall degree and extent to which they can consider themselves as environmentally and ecologically minded. Ultimately, there is no limitation to the scope that this encompasses; as firms are promoting sustainable development is upon everything from solar energy to the way in which they dispose of waste generated as a result of ongoing tourism and development. This dynamic is more than a simple trend; it effectively demonstrates the way in which growth and development within the tourism and hospitality industry defines the way in which the competition engages with the consumer. Accordingly, if firms are to remain relevant and continue to promote efficient levels of engagement with the consumer, they will find it necessary to engage them based upon a newfound level of appreciation for renewable resources and the means by which they consider factors relating to the ecology and environment. Yet, before promoting that this new means of engagement will necessarily define the industry completely, it is necessary for firms to realize that he levels of understanding should be directed towards sustainable and renewable/green conscientious development; due to the fact that this particular dynamic is not something that should have unlimited resources devoted to it. A litany of studies have indicated the fact that even though consumers consider environmental sustainability and issues concerning ecology to be extraordinarily important with respect to the decisions they make, price and other consumer factors still dictate whether or not a given choice to engage with a hospitality industry or not is made. In all fairness, the role of the tourism planner is highly concentric upon the level and extent to which deciding what to build and where must be decided upon. Although the analysis has thus far been highly critical of such a gross and oversimplification of responsibilities, it must also be noted that if a single sentence could be utilized as a means of describing and defining the roles and responsibilities of a tourism planner, the one that has been presented comes nearly as close as possible to effecting such an end. Yet, as can clearly be seen from the information that is been presented, the role is expansive and requires a working knowledge of economics, market dynamics, legal issues, environmental issues, political issues, technological issues and social issues to fully grasp the way in which adequate decisions should be made. Whereas the approach that is been presented has been represented is one that must take a nuanced interpretation of all the available data, the fact of the matter is that most tourism planners have only a limited level of knowledge with regards to how each of these factors integrate with their decision of what to build and where. From the previous analysis, it can and should be definitively noted that the greatest portion of decision-making ability and skill that the tourism planner must have is truly contingent upon the need of deciding what building where. However, with that being said, it is also a fundamentally important for the tourism planner to understand each of the attributed means by which this decision is impacted. Although the analysis has been thorough in anticipating and briefly discussing each of these, the truth of the matter is that there is in fact a great litany of other mechanisms through which the tourism planner must engage in order to make a well-informed and accurate decision. Without question, the role of the tourism planner is a stressful one due to the fact that multiple millions of dollars can be tied up in a single development, the necessity of making a well-informed and pertinent decision is paramount. With all that being said, it must be understood that a thoughtful process must be engaged in order to make any other changes referenced within this brief analysis. If a nuanced and definitive process is engaged but is cognizant of the analysis, as well as many of the other decisions and choices that of the reference, it is likely that the decision of what to build and where can more effectively and appreciably be accomplished. However, if an individual PESTEL tourism planner merely seeks to engage a decision based upon simple determinants, the result will almost invariably be a disaster. Work Cited Cetron, Marvin, Fred J. DeMicco, and David Chang. "Energy: Lifeblood Of Hospitality." Journal Of Foodservice Business Research9.1 (2006): 97-123. Academic Search Complete. Web. 21 Aug. 2014. Read More