In recent years, a number of significant social and economic

changes have occurred that suggest a bright future for the tourism and
hospitality industry. These are:

 EARLY RETIREMENT. At present, many workers retire at an earlier

age than the case in previous years. The US social security system
provides benefits to workers as young as 62 years of age and many
employee retirement program are based on years of service rather
than on age. In some retirement’s programs, specifically government
programs, it is possible to work 25 or 30 years and receive benefits
at the age of 55 or younger. The increasing number of people who
retire early is beneficial for the tourism and hospitality industry
because these people use their time to travel and see the world;
 LONGER LIFE SPAN. The average individual can now expect to live
beyond the age of 70 and many will live longer. This is in contrast to
earlier generations when the average life span was much less. The
increasing population of older, retired citizens who are richer due to
pension programs and are healthier provides a larger base of
potential customers for tourism and hospitality operations;
 SHORTER WORKWEEK. In the past, the six-day workweek was the
standard for most working people. At present, the five-day workweek
is standard and the four-day workweek is becoming common-leaving
several days for other activities. The resulting increase in leisure time,
combined with faster and easier transportation, makes possible for
many individuals to take weekend vacations and travel to a degree
they could not have made a few years ago. The tourism and
hospitality industry will surely benefit from this increase in travel;
 GREAT DISPOSABLE INCOME. The average family has more money to spend
than before. This is due to higher wages and two-earner households. A large
portion of the additional disposable income is spent on consumer goods and
services. The tourism and hospitality operations receive an important share of
it;
 GREATER MOBILITY. Improved roads and better transportation make it easier
to travel every year. The modern highway system has reduced the time
required for automobile travel between any two points. New planes use new
technologies which enable them to carry more passengers while using less
fuel. These increase in travel have a positive impact on tourism and hospitality
industry sales; and
 SMALLER FAMILIES. The average family size has decreased. Thus, it is easier
for the family to travel and travel costs less if few family members travel.
 Although the future of the tourism and hospitality industry is bright, it is
not without problems. Those pursuing careers in tourism and hospitality will find
it necessary to obtain knowledge with regard to a number of issues that the
industry must face in the future. Some have been issues for many years, but no
final solutions have been found. Others are emerging issues brought about by
social, economic, and technological change.

These issues can be categorized under the following headings:

 Marketing;

 Legal;

 Human resources;

 Operations; and

 Consumer affairs;
 -are changing demographics, changing vacation patterns, market
segmentation, frequent guests programs, maturation in segments of the
fast food industry, and consolidation.

Changing Demographics
The population of developed countries is aging. The median is now
33 years and is projected to increase in the coming years. This is an
issue that is significant to the tourism and hospitality industry. An older
population has preferences that differ from those of young population.
Thus, service providers will find it necessary to adjust their service
product to the changing preferences of the market
Changing Vacation Patterns
Citizens of industrialized countries are changing their vacation patterns. The traditional
once-a-year vacation of two weeks is declining in popularity. For a growing number of
people, vacations are becoming shorter and more frequent. At, present, more people usually
plan mini-vacations, adding two of their annual vacation days to a three-day holiday
weekend. In this way, they manage to get away for a mini-vacation of five days while using
only two actual vacation days

Market Segmentation
Since 190, the principal term in tourism marketing has been marketing segmentation.
Until the late 1970s, lodging establishments attempted to appeal to broad general markets.
Their aim was to appeal to abroad group of potential visitors. In recent years, the success of
the limited service properties has led to the development of other properties intended to
appeal to selected market segments.
Frequent Guest Programs
Because of the proliferation of properties and the increasing competition
among them, some lodging operators have begun to develop programs to
gain repeat business. Modeled on the frequent-flyer programs which were
successfully used by many airline companies, these plans give credits to
regular guests. They can be redeemed in the form of reduced rates, upgrades,
free accommodations, free meals or any variety of amenities.

Maturation in Segments of the Fast-Food Industry

Segment of the fast-food industry are no longer expanding to the extent
that was formerly possible. The demand for hamburger is not growing as fast
as it once did, so operators find it necessary to developed new products to
maintain the desired sales level.
Consolidation in the Commercial Lodging Industry
Some experts are now predicting that the number of
large nationwide lodging companies will decrease in the
coming years; that a small number of firms will dominate
the lodging industry by acquiring smaller chains of
regional or national properties. This will enable successful
companies to obtain the funds required to expand their
operations internationally.
 The legal issues are liquor liability and ethics in the
tourism and hospitality industry.

Liquor liability
In the past, there was a growing public concern over the
increasing number of alcohol-related automobile accidents. At
present, alcohol and the use of drugs is a factor in more than half
of all automobile accidents. This led the public to pressure state
legislatures to act. Legislators have responded by lowering the
levels of blood alcohol in which an individual is considered
intoxicated and by increasing penalties on offenders.
Ethics in the Tourism and Hospitality Industry

Ethics is an academic discipline that deals with the study of codes

of moral conduct practiced by individuals or groups. Business ethics
refers to the application of a particular moral code to relationships,
activities, and discussions made by individuals in business or industry. It is
the code that enables the individual in business to distinguish right from
wrong; to differentiate between ethical and unethical behavior.
Ethics in the tourism and hospitality industry has been the issue for
thousands of years. The business practices of some operators of tourism
and hospitality establishments are questionable. Business ethics is likely
to remain forever in the list of tourism and hospitality issues.
 Some of the human resource issues are sexual harassment, employee
turnover, employee assistance plans, and employee empowerment.

Sexual Harassment
May be defined as unwelcome sexual advances, requests for sexual
favors, and other verbal or physical conduct of sexual nature that take
place under any of the following conditions:

 submission is made a condition of the person’s employment;

 submission to or rejection of such conduct is used as a basis for
employment discussions affecting the person; and
 it unreasonably interferes with the person’s work performance or
creates an intimidating, hostile, or offensive work environment.
 Most cases of sexual harassment involve complaints by females about co-
workers or superiors. In the last 10 years, the number of cases has grown because
an increasing number of women have become willing to speak out.
Because employers are liable for the actions of their employees at work, it
is very important for employers to the following steps:

 institute a strict policy banning all forms of sexual harassment in the workplace.
 develop appropriate training programs for managers and employees so that
all will understand and become sensitive to the nature of sexual harassment;
and
 establish procedures for handling all complaints promptly, fairly, and in a
sensitive manner.
Employee Turnover

-one of the major issues confronting managers of tourism and

hospitality enterprises. With turnover rates averaging approximately
100% per year, managers are always faced with the problem of
losing experienced employees and hiring less-experienced employees
as replacements.
Faced with inexperienced replacements, several managers
believe they have only two choices-to shoulder the high training costs
associated with developing new employees into efficient workers or to
incur the equality high costs associated with working with untrained
employees. Very few realize that there is a third alternative-to retain
valuable employees and reduce turnovers.
Employee Assistance Plans (EAPs)
-are include in the discussion of major issues in the tourism and hospitality
industry because they are one of the secular steps to pay attention regarding the
problems of their employees. The problems of those employed in the tourism and
hospitality industry include psychological problems, family issues, financial
problems, legal issues, health, as well as educational issues.

Employee Empowerment
In some tourism and hospitality establishments, managers have developed
rules and procedures that employees are directed to follow. These include
directives such as inflexible rules for checkout time, rules prohibiting free refills on
coffee, strict limits on the number of hand towels per guest, or directives
prohibiting substitutions on special dinner menus. These may affect the overall
impression of a guest regarding particular food service or lodging enterprise.
For some guest, these rules may be enough to make them decide never to return.
 The operations issues include automation, smoking/
nonsmoking areas, sanitation and public health, and recycling solid
waste.

Automation
-is the process of using electronic and mechanical equipment
and machinery to complete some or all of the tasks associated
with a given enterprise. The two primary reasons for automating
an enterprise are:

 To increase the speed of work; and

 To reduce the cost of work.
 Automation in the travel industry is here to stay.
Computerization will affect the industry principally in three areas,
namely:

 Communications. Business travelers frequently change their

itineraries to suit their changing requirements. Much time at
present is lost in making alternative arrangement through
vendors or distributors from payphones, hotel rooms, or
secretaries’ phones. Portable communication data units (PCDUs),
a portable telephone or computer allows a business traveler to
communicate with any travel entity from any place including
airplanes and rearrange or reconfirm his travel plan;
 Interactive CRTs. Interactive television is now being used in some
cities. Within a few more years, more cities will be using it. It is
possible that much of the order placement process will be
shifted to interactive television. Specific order forms can be
programmed into a database that can be accessed by any
numbers of users.

 Elimination of Tickets. There is no longer the need for the traveler

to carry an actual document for an airplane seat or a hotel
reservation. A traveler may place the order about his impending
trip on his interactive television, and insert his travel card into the
appropriate slot on the side of the console.
 One of the biggest problems of agents nowadays is how to find the most
efficient way to deliver the traveler’s documents. The elimination of tickets has
the biggest impact on the distribution system because the role of the agent as
a trustee is eliminated. Consequently, the order-taker-only agent will also be
eliminated.

Smoking/Nonsmoking Areas
As more and more customers of tourism and hospitality entities demand
smoke-free areas for dining and smoke-free sleeping accommodations, the
industry will continue to exert efforts to meet these demands. This is specifically
true in places in which legislation orders that appropriate facilities be made
available. Hence, restaurants apportion sections of their dining facilities to
accommodate the requests of nonsmokers. Some even install or improve
ventilation equipment.
Sanitation and Public Health
A very important issue in food service is sanitation. Everybody agrees that
all steps should be taken to prevent illnesses that are caused by the manner in
which food is handled or to the food itself.
Proper food handling has always been an issue in the industry. Managers
must always be sure that food is bought from responsible vendors. Food must be
kept at suitable temperatures to prevent the growth of bacteria. It should be
placed under proper conditions to prevent infestation by insects or rodents.
National and local governments apply strict sanitary standards to food and
beverage operations. Some conduct regular inspections and apply sanctions on
those found violating the regulations. The sanctions range from imposing fines,
publishing lists of violators in newspapers, and closing the establishments of
consistent violators.
Recycling Solid Waste

In previous years, there has been a gradual closing of the landfills that
were used for disposing solid wastes and a growing awareness of the harmful
effects of either burning solid waste or dumping it into the sea. This has
resulted in major waste disposal problems in some places.
In some cities, the cost of removing solid wastes is increasing to the extent
that government and citizens are unable to pay. In many of these areas,
separating recyclable plastic, glass, and other items from pother solid wastes
greatly decreases the quantities that require disposal.
The trend toward recycling is likely to increase. Many in the tourism and
hospitality industry who have not been previously affected by this issue will
eventually find it necessary to adopt a recycling program.
 The consumer affairs issues are fire, safety, truth in
menus, and diet/nutrition/health.

Fire Safety
Fire safety has always been an important issue in the tourism
and hospitality industry. In earlier centuries, taverns, inns, and
hotels which were usually constructed of food were regularly
destroyed by fire. Many were burned to the ground and a large
number of people were killed or crippled.
Truth in Menus
For food service operators, preparing truthful menus is an
ethical practice that should never be violated. However, a small
minority have produced menus that are not accurate indicators of
the food served in their establishments. Some serve US choice beef
when their menus states US Prime beef. Others serve portions with
fewer ounces than the number listed in the menu. Still, others have
not used the actual ingredients suggested by their menus and have
substituted one product for another such as turkey for chicken,
margarine for butter, generic products for name brands, and
domestic products for imported ones.
Diet/Nutrition/Health

Since the public is very much concerned about healthy diets

containing less fat and lesser calories, many food service
operators are adjusting their menus to the changing public tastes.
Some are devoting sections of their menus to food for the diet-
conscious; others are assigning certain menu items for those
interested in food that is low in sodium and cholesterol. An
increasing number of restaurants exert to attract health-conscious
diners. Some have eliminated unhealthy food from their menus.
 The World Travel and Tourism Council forecasts that travel and tourism will
grow at 40% to 50% in the next 10 years. This tremendous increased present
great challenges and career opportunities for tourism and hospitality graduates
nowadays. According to John Naisbitt, the futurist, the global economy of the
twenty-first century will be propelled by three super-service industries namely
telecommunications, information technology, and travel and tourism.

The following tourism and hospitality items are but a few examples of the
wave of the future:
1. Increased speed and shopping use of the internet in developed countries;

2. Extended reach in less-developed countries

3. Improved security of personal information

4. Robotic labor sources;
5. Reservation system with more sophisticated, voice-activated,
artificial intelligence;
6. Improved navigational systems for rental cars;
7. Electronic entertainment venues in rental cars and on planes
and cruise ships;
8. Upgraded Internet personal digital assistants for operations;
9. Marketing mass customization
10. Comprehensive branding campaigns for large and small
operators;
10. Virtual online customer communication
11. Just-in-time seats/rooms/car inventories;
12. Electronic travel agents;
13. Blended hybrid accommodations;
14. Global anti-terrorist microchip security systems;
15. More nutritional fast-food offerings;
16. Emphasis on e3cotourism; and
17. Improved customer relationship marketing information.