Opportunities and issues faced by the Hospitality Industry due to Globalization | Hospitality Assignment Help

1. Introduction

The globalisation has provided several opportunities for various industries across the globe, and the hospitality industry is not an exception. In the modern scenario, the hospitality industry plays a huge role in improving the overall GDP (Gross Domestic Products) of the nations. However, besides that, in the modern scenario, there are various challenges that have been faced by the hospitality industry due to higher customer expectations and the government implemented rules and regulations. Globalisation has opened several scopes for the hospitality industry in terms of profitability and expansion. However, this particular research will provide a mere understanding regarding the challenges of faced by hospitality industry due to which the operators are facing issues in providing the high quality of services to all the customers around the globe.

2. Research overview

As globalisation has provided several opportunities for the hospitality industries, the number of challenges are also quite high. Apart from the advantages of globalisation, due to social welfare and government-issued rules by the global government entities hospitality industry are facing significant issues and challenges. High level of customer expectation and changes in the market dynamics have also created extensive challenges for the industry in a global arena. The marketing operations and high level of competition by the hospitality companies have influenced the issues (Yu, Byun and Lee, 2014).

On the other hand, based on the opportunities of globalisation in the hospitality industry, it can be observed that innovative technology, reputation management and loyalty programs by the hospitality companies have also introduced several opportunities for the industry as well. The personalised client's expectation and employability factors have also created several opportunities for the industry as well. However, current changes in food and beverage consumption habits, event bookings, digitisation and changes in the international market have also presented several expansion opportunities for the hospitality industry (Lee-Ross and Johns, 2001).       

3. Problem statement

It can be seen that due to the immense growth of the hospitality sector the rate of competition has been increased due to which small-scale hospitality organisations have faced the minimum rate of profitability and improvements. In addition, the corporations are failing drastic issues in finding and keeping reliable and valuable customers so that profitability can become highly rated. Due to the continuously changing market dynamics and food attributes the position of the hospitality sector have faced turbulence. The waste management protocols and rules have also been incorporated by the government entities due to which the managers of hotels are forced to take the operational decisions and change management strategies wisely. In the current situation, the cost of business operation and legislation taxes have also been increased that increased the level of expenses and un-wanted outflow of resources for the companies (Niewiadomski, 2014).

On the other hand, besides that tremendous growth of the hospitality industry in a global arena major challenges have been faced by the managers due to the drastically changing operational behaviours of the organisational staffs. The changing perspectives of the customers have also created several obstacles in the operational behaviours and profit earning abilities of the companies. Globalisation has also opened several opportunities for the hospitality industry, but along with it the path to gain competitive rewards have become difficult as well.      

4. Research aim

The primary aim of the research is to analyse the opportunities and challenges that are being faced by the hospitality industry in the modern scenario. However, the impacts of the challenges and opportunities on the operational procedures of the organisations in the industry are also aimed to analyse through this particular research. The research will also demonstrate the challenges and changing dynamics of the hospitality industry that have changed the preferences and demands of the customers. Through incorporating proper analysis and observation the findings of the research will be constructed based on the probable advantages and issues in hospitality will be acknowledged (SRIVASTAVA, 2013).

5. Research questions

  1. What are the opportunities are available for the hospitality industry due to globalisation?

  2. What are the relevant issues that are faced by hospitality organisations due to globalisation?

  3. What is the impact of the profitability of hospitality industry in the GDP of the nation?

6. Literature review

Annotated bibliography



Bibliographic detail

Grizane, T. and Jurgelane, I., 2017. Social media impact on business evaluation. Procedia Computer Science104, pp.190-196.


The selected journal mainly discussed the competition and globalised approach that have been accounted for by the international hospitality organisation. The journal article also includes the relevance of social media that is one of the considerable element of globalisation. From the journal it can be understood that in the modern scenario the clients more likely tend to search for their preferable accommodation through the websites. Therefore, due to this, the hospitality companies have used a globalised approach through which they have managed to expand their reach from the customers through social media.

Critical analysis

While discussing the critical analysis of the selected peer-reviewed journal article it can be seen that social media continues the different type of database, through which the hospitality industry can have a specific understanding regarding the customer demands and trends. However, based on the dynamic interpretation of the data that has been collected from the social media, it can be criticised that the changes of offerings of the companies can also be preselected in front of the customers and based on their feedback on the social media relevant changes can be acknowledged as well (French, 2018).   


The selected journal article is relevant as it can deliver a proper overview regarding the effectiveness of social media for having globalised changes in the business prospects of the hospitality industry. The examples of 1997 have also been given in the journal based on which readers can understand the transition of globalised approaches through using technological changes. The impact of social media on the business evaluation model has also been depicted in the journal that may assist the reader to understand the impact of social media in the operational structure of the corporations as well.




Bibliographic detail

Rachão, S., Breda, Z., Fernandes, C. and Joukes, V., 2019. Food tourism and regional development: A systematic literature review. European Journal of Tourism Research21, pp.33-49.


The selected peer-reviewed journal have depicted the change in food consumption habits of the tourists on a global scale. In addition, the relation of the food with hospitality business is also discussed in the article. Globalisation has also created a specific impact on the food-related business of hospitality companies across the globe. It can be seen that food consumption habits and the context of gastronomy tourism have also been critically depicted in this article.

Critical analysis

Based on the critical analysis of the selected peer-reviewed journal articles it can be understood that food tourism is one of the cortical aspects that are inter-related with the profitability of the hospitality industry. However, there are UNESCO and OCED that operates the prospects and globalised approached used by the companies in this particular sector. Globalisation has also managed to change the food-consumption habits of the clients that have forced the companies to become more dynamic and innovative regarding the operational strategies (Ivanov and Ivanova, 2016). 


Based on the elements of the peer-reviewed journal articles that are selected above it can be stated that the article is relevant for the selected assignment topic. It can be seen that the article has fulfilled all the respective procedures of data analysis and research. Relevant data extraction procedure, inclusion and other aspects have been followed in the assignment, where the food-related innovative approach and operational strategies adopted by the international hospitality companies have also been included in the article as well. It will assist the reader to have an apt and justified overview regarding the selected context.




Bibliographic detail

Gursoy, D. ed., 2017. Routledge handbook of hospitality marketing. Routledge.


The above-sleeted journal article reflects the efforts and dedications of the hospitality companies that can assist in increasing the revenue of the organisations. Apart from that, it can be seen that due to the immense competition in the global arena of hospitality management globalisation have changed the perception of food and lodging operations that have made the organisations quite competitive in the current market structure. Apart from that, the article has also depicted the probable issues and market challenges that can be faced by organisations in a different type of market segments.

Critical analysis

The critical analysis of the article has also described the contemporary marketing issues and opportunities faced by companies while operating in the global market scenario. Additionally, both theoretical and practical issues of global business is also been described in the article as well (Baum, 2019).


The article is relevant as it is capable to demonstrate the global factors that can assist the global organisations of the hospitality industry to develop a well-managed operational behaviour.


7. Timeline


Week 1-2

Week 2-3

Week 3-4

Week 4-5

Week 5-6

Week 6-7

Selection of topic







Reviewing Literature







Grading Research Methodologies







Data Collection







Data Evaluating







Data Clarification







Final Deliverance














Final Submission







Table 1: Gantt chart

(Source: As Created by the author)


  1. Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal of Contemporary Hospitality Management.

  2. French, S., 2018. Between globalisation and Brexit: Migration, pay and the road to modern slavery in the UK hospitality industry. Research in Hospitality Management8(1), pp.23-31.

  3. Ivanov, S. and Ivanova, M., 2016. Do hotel chains stimulate globalisation?. Tourism Management Perspectives19, pp.102-108.

  4. Lee-Ross, D. and Johns, N., 2001. Globalisation, total quality management and service in tourism destination organisations. Tourism in the Age of Globalisation10, pp.242-257.

  5. Niewiadomski, P., 2014. Towards an economic-geographical approach to the globalisation of the hotel industry. Tourism Geographies16(1), pp.48-67.


  7. Yu, Y., Byun, W.H. and Lee, T.J., 2014. Critical issues of globalisation in the international hotel industry. Current Issues in Tourism17(2), pp.114-118.


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