MANAGEMENT

Internationalisation of Hospitality

Internationalisation of Hospitality

Introduction

The term globalisation has said to become a part and parcel of everyday vocabulary. The term has become cliché to the extent that one gets to hear it not only in the news but also in the newspapers and hear people using it in conversations. Before, we analyze the major impacts of globalisation on hospitality industry in the current environment, it is mandatory to understand what globalisation is and what it entail (Fyall, 2003, pp. 436). The term globalisation is said to be a shift towards a world economy which can be defined as being highly interdependent and highly integrated. When it comes to the hotel industry there have been increasing levels of globalisation which in turn has impacted all aspects of the hospitality industry stimulating it to render the business practices as well as the organisational culture to cope up with the dynamism of the business market (Jeffery, 2002, pp. 1-3).

Increasing Levels of Globalisation in Hotel Industry

When businesses and the international trade undergo expansion then there seems to be no question arising in terms of whether the international based linkage will become highly crucial for the hospitality industry. In the initial phase, the hotels are said to receive guests from all around the world in any season (Sigala, 2005, 391-413). Then came the phase whereby there was a huge transformation in terms of the development of transportation system as well as the development of technology system which aided in making the structure of the industry become highly complex when it comes to affiliation, scope, management and ownership. With the transformation there were many models that developed in terms of the hospitality industry. The different models are:

Referral Group Properties

Franchised Properties

Chain-Operated Properties

Independently Owned

Operated Properties

Chain-Owned Properties and others

Whereas when it comes to the number of rooms, the most dominant sector is the chain hotels. There were two whole premises behind it when it comes to the reason behind why the hotel chains started to find opportunities to make its presence known in the global market place. When it comes to entering the global market there are many advantages that are present comparatively specifically when it comes to the countries that are in the developing phase since they tend to have a saturation or overcapacity in the markets at home. Ironically, the investment in hotels external to the home country constitutes risks which are characterized with number of environment al influences impacting the performance as well as the strategies of the organization (Morgan, 2001, pp. 40-42). The environmental factors that impact the hotel investment are:

Political factors

Taxation Policy

Foreign based Trade Regulation

Economic Factor

Inflationary pressures

Business Cycle

Socio-Cultural Factors

Lifestyle Changes

Social Mobility

Technological Factors

New Discoveries

Environmental Factors

Legal Factors

monopolies legislation

employment law

Cultural Factors

These factors tend to have a high level of impact when it comes to the internal operating environment of the hotels and companies and hence it will be discussed in the following paragraphs.

Impacts on Organizational Cultures

Often there is a story told of an individual that is fresh to an organization and is said to be asking a worker ...