Globalization the travel. Hospitality is known for servicing
Globalization of the Hospitality Industry Jennifer Bratton University of Phoenix Globalization of the Hospitality Industry Introduction The hospitality industry strives from consumers wanting to get away from everyday stresses. These consumers want to relax and enjoy time away from everyday life.
When a person is traveling they need a place to stay, a place to eat, somewhere to visit, and someone to make the arrangements for the travel. Hospitality is known for servicing the guests and making sure that their expectations are meet.This means going above and beyond what they are expecting. The hospitality industry is a global industry.
This means the hospitality industry is operating in many different countries. There are many pros and cons to be a globalized organization. It does make doing business a little more difficult.
There are cultural, religion, and moral hurdles that has to be jumped over to make sure the business runs smoothly. The article in the Consortium Journal volume 13 issue 2 is a lot about globalization in the hospitality industry.The article discusses the hospitality industry, globalization and tourism, influence of weather, economic factors, cultural differences, expansion and diversity, human resource management, barriers, and globalization and success. Understanding globalization is important to any business but in the hospitality industry it is crucial to survival. This article helps people to understand the pro and cons.
This article also explains any obstacles that need to be overcame when globalizing in the industry. Things have changed so much in the hospitality industry and will continue to change.Globalization plays a big role in the changes within the industry. Local chains are now seen in Europe and Italy. Local restaurants are now being seen in Canada and Germany. For example, on most military bases across the world they have fast food establishments like McDonalds and Burger King.
Article Information Globalization, according to the Consortium Journal, is the process of companies expanding of companies expanding their business or operations to foreign markets, to take their business to new heights. In any industry xpanding into a foreign market means a broader customer base. (Frink, D.
)Factors relating to globalization need to be evaluated for the whole business operation and the market from a systems approach. The competition is expanding and getting better so each business has to decide whether to jump on the train to compete or fail and close up their doors. Adapting to globalization will help the business maintain market share. Globalizing a company costs money and smaller companies need to be aware when globalizing that they have to budget to be successful. (Frink,D.
Developing a strong business plan and having a budget will make an organization successful when going global. When a company becomes global they have a bigger profit, larger global influence, more consumers, and more competition. Reaching out to a wider customer base is the reason any company decides to go global. Once a company reaches those consumers the organization makes a bigger profit and then they have repeat customers in the area they expending to. Companies not only have to adapt and change when globalizing now they have more customers that will adapt and change their expectations.
Anyone can see that there are many reasons to go global even though complications may arise when prior planning has been done by the organization it will most likely succeed. Overcoming any obstacles including the competition will be an enormous victory. (Frink, D.
) Challenges Expanding Beyond Domestic Market There are many challenges beyond the domestic market of the hospitality industry. Expanding into a foreign country is not easy because of the difference is cultures, economies, currency, import and export, and religion.Understanding exactly what globalization means is the first step in making it happen.
Weather can play a big part in globalization. If there is a large amount of rain then it might not be the best place to put an amusement park. This is the reason most resorts are built in areas that have a warmer climate. This also means that they can attract guests throughout the entire year.
(Frink, D. ) The economy can affect globalization in a big way. (Frink,D.
) For example, the economy today is in a financial crisis. Less people are traveling because of the expense.This means that the hospitality industry is making less of a profit.
In turn the hospitality industry as a whole is suffering. The economy in each country is different so the market will differ. Even though the United States is having economic issues other countries are not. Cultural differences will also affect globalization. (Frink, D. )Expanding into a country a business should do research on the culture including the religion in order to succeed. Food differs, lifestyles differ, language differs, and so does the currency.
(Frink,D. ) This can be the most complicated barrier to overcome.For example, knowing that in some countries it is not proper etiquette to shake with your right hand. If an organization is unaware of this difference they can offend people and then they will not have any more customers in that area.
This would be considered a fail in globalization. Religion is a big problem when globalizing. If an American company where to place “In God We Trust” in a country that does not believe in god then the outcome could be disastrous is many ways. Conclusion Expanding into a foreign country is not an easy task and should not be treated lightly.Any business that wants to expand their customer base and make a bigger profit should go global. There are many things to take into consideration when globalizing. Even though there is a chance the organization can fail when going global if the company has a sturdy business plan and made a budget then the chances of succeeding are much greater.
Any business thinking of globalization should consider all challenges that they may face so that they are prepared to avert the complications before they arise. When globalizing the biggest challenge is overcoming the cultural differences.This can make a company fail or succeed. Understanding what globalization means is the first step. The second step is to prepare by having a solid business plan and budget set up to expand into a foreign country. The final step before expanding is doing research about the country or area expanding to.
Following these steps a business will succeed. Succeeding makes the company more money and gives them more customers. This is why a business is in business in the first place. References Frink, D.
(). Globalization in the hospitality industry. The Consortium Journal, 13, 79-88.