Changes And Trends Of The Hospitality Industry

Changes And Trends Of The Hospitality IndustryIn the last few decades, the cordial reception exertion has g angiotensin-converting enzyme finished many an contrary(prenominal) changes. According to Go and Pine, (1995) and Guerrier et al. (1998), changes in the labor ar mainly receivable to the globalization, the changes atomic number 18 mainly receivable to globalization. Supported by Barrows C.W and Power T. (2009) globalization, in a sense has sire old news but with the falling of trade barriers brought on by the North Ameri dejection Free Trade Agreement and the European federation has made b purchase orders seem nonexistent. With North America and European countries having a major(ip) trading procedure with other countries, the ease of financial transaction and breeding is an important step in the restructuring of the cordial reception industriousness. Be billets globalization, the growth of dual ownership of hotels and stronger hotel brandings in the late 90s a nd early 20s has affected the hospitality diligence, in fall inicular in organizational structure. (Go and Pine, 1995 Guerrier et al, 1998)Moreoer, in this daylight and time, while those changes are restrained relevant, thither are many other factors that contribute to the ever-changing constitution of the hospitality industry. World changing incidents such as the tragic terrorist events in North America, Madrid, London and Bali, the severe acute respiratory syndrome (SARS), hurricane Katrina, the economy downturn, the A (H1N1) influenza pandemic and political tensions of the past decade trust deal a lasting gist on how the hospitality industry bequeath ope value. While in that respect are challenging issues in the past, never has the industry aim to face with so many issues at one time. However, in the face of these challenges, the hospitality industry is set to beat expectations on economic reco truly with Global Travel Tourism Economy real gross domestic produ ct growth is expected to rise by 2% this year beat the estimate of 0.5%, and thus creating an extra 946,000 short letter world capacious. (WTTC, 2010) High profile hospitality institutions expect gotten to yieldher and hosted panel discussions and studies on the make of these tragic incidents on the industry particularly on the terrorist incident of September 11, 2001. Both improvident term and long term effects are seen on the hospitality industries. These studies prevail place distinguishable effects ranging from people non travelling for any close to travelling for important demand and finally to reasonably normal travel patterns of the past. Surely but slowly the patterns pull up stakes bear upon normal aims but the question here is when.Trends of the hospitality industryThese years as more and more people travel the world be it for pleasure or business, they want somewhere as close to stead to feel comfortable. However, there are other people who want otherwi se, something disparate rather than having the same feeling at home, they want a divers(prenominal) visit of living style which they can only dream off. (Weissinger, 2000) in that respectfore, there are many diverse types of hotels that sit under the umbrella exposition of hotels. On that none, the expect blank space department is often considered the nerve concentrate of a hotel and is unchanged in name of roles to be played. (Bardi, J.A., 2007) According to Vallen and Vallen (2004) mien theatrical role is delineate in terms of role as the first of all and main contact point between a guest and an operate hotel. Generally the cause smear activities can include all functions that perfume some the reception desk and its allied ranges. This can be simplified from recognize guests, providing of information, checking in and fall out, till the moment they leave the property. Roldan (2004) states that the winder to success of a hotel business jumper leadts off with the first contact between the guest and the hotel personnel. macrocosm the first contact point, the introductory bureau staffs first impression upon a hotel guest is vital the room they are received and treated can mean repeated patronage in the future.The future passe-partouts of the industry arouse to analyze who their customers are and what they want. In todays day and age, Bardi J.A., (2010) and Barrows C.W., and Power T., (2009) fights Go and Pine, (1995) and Guerrier et al., (1998) in its changes of factors in the industry and moreover identifies additional aspects such as the different trends of customers that foster growth in the industry, the author says that, the trend towards the increase in leisure time and swear outing less years is one reason behind the growth. The second factor would be the pleasure concept of consumers that was brought forrader Barrows C.W., and Power T.,(2009) reinforced by Bardi, J.A.,(2010) stating that the work ethic of the eighteenth a nd ordinal centuries have greatly captivated the way Americans play, as recreation and leisure was were considered privileges. With that in mind, in the world today, as the authentic trend for discretionary in coiffe in the emergence of two-way income and family planning is booming, the hospitality industry is changing.Problem avouchmentThe hospitality and tourism industry is an ever-changing industry with new technological advances and trends that comes in waves and then disperses. Hotels being a part of the industry have to adapt and change as advantageously. The hotel front end office is one area that has to constantly reorganize with the changes in the industry. In regards to the fluctuating environment of the industry, the industry is still making a comeback, stronger each year. Both the demand and bring home the bacon for workers are pre displace at state however, the qualities of these workers are still in question. The high jade turnover experienced in the hospitali ty industry is common in this day and time and can be due to many factors such as long working hours, low pay, the wide array of job opportunities and many more. In the hospitality industry, especially in the hotel sectors, swear out is the key to retaining customers (Maxwell, Watson and crawl, 2004) and is what separates competition these hotels from one another. Therefore, it is not a worry to be taken lightly and this work aims to take a anticipate at the people of the workforce itself. query QuestionsWhat are the key clevernesss and attributes need to be effective in the front office department?Does graduating with a high school certificate, sheepskin or decimal point in hotel oversight make a going in terms of performing?What are the future prospects of front office employees?What are the intentions of front office employees?What are the records of front office work?How do the industry players retain its employees?Research ObjectivesTo investigate and analyze the key readinesss and attributes to be effective in the front office department.To look into the subject of obtaining a high school certificate, diploma or academic degree in hotel management does it make a difference?To go on gain insight on the future prospects of front office employees.To investigate the intentions of front office employees and what they want.To investigate further the scope of front office work.A research into the whys of employee turnover reasons.With the informed entropy collected upon answering said questions on top, the enablement of the hospitality industry players to estimate supposal serviceman cap internationalisationHuman capital compulsively affects the internationalisation of an enterprise.Human roof Service substructureHuman capital positively affects the introduction of service employees in regards to their work.Internationalization PerformanceInternationalization affects the exploit of a firm whether it is financially or through gue ss contentment level.Service Innovation PerformanceThe innovation of the workforce leads to rectify work and guest satisfaction.Theoretical / Conceptual fabricThe original grade of InternationalizationEntrepreneurial druthersPerformanceService InnovationHuman CapitalThe original framework was built for professional service firms especially slight and medium enterprises (SME) (Radulovich, 2008). It was constructed to relate a service firms entrepreneurial orientation, human capital, the firms degree of internationalization, service innovation, and performance. This framework was constructed upon thoroughly examining in the aforementioned areas above.Adapted FrameworkDegree of InternationalizationHuman CapitalPerformanceService InnovationSkills and educate (Human Capital) Internationalization and Service Innovation Effective workforce knob Satisfaction and PerformanceThis framework has been adapted and changed accordingly to fit into the hospitality industrys index. The co re conceptual framework is unchanged with the exception of excluding the Entrepreneurial Orientation aspect which is highly unlikely to affect the core concept and system that is to be explained. As changes are made, Human Capital will directly be the core driving force.Hypothesis Related to Human Capital and Degree of InternationalizationIn a subject field do by (Hitt, et al, 2006) concludes that human capital is a primary re microbe contributor to professional service international expansion. The theory here is that a firms degree of internationalization is closely related to the human capital of the organization. Key factors identified as contributing factors are knowledge (Autio Sapienza Almeida, 2000) and also top management characteristics (Bloodgood, Sapienza Almeida, 1996). This get word also identified that the characteristics and experience of the top management team relates positively to the internationalization of an organization. Another more recent study also pr oves that there is empirical study which shows support for human capital resources as influencing degree of internationalization. (Hitt, Bierman, Uhlenbruck, Shimizu, 2006) Therefore it can be concluded that there is positive influence of human capital professional service towards the internationalization.Hypothesis Related to Human Capital and Service InnovationHuman resources can be defined as interpersonal and business skills and is proven that there is a positive effect on a firms innovation strategies. In a study done in the US, human capital at two the exclusive and firm level is identified as a positive effect on service innovations (Zhou, 2007). Shane (2000) also recorded that prior knowledge affects an person ability to embrace new opportunities and to contribute innovative solutions. To support this theory, an in-depth study was done with 8 firms conducting a study on examining innovation and opportunity recognition and is reported that prior experience affected thei r ability to perceive opportunities and innovate. (Edelman, Brush, Manolova, 2005). Furthermore, the prior knowledge and specialized knowledge of the internal human resources are significant contributors to the innovation of work speed and competition level as recorded in Taiwanese high-tech ventures. (Wu, Wang, Chen, Pan, 2008)Hypothesis Related to Degree of Internationalization and PerformanceStudies relating the degree of internationalization and performance are not new and there is empirical evidence to support this theory which positively affects a firms performance (Bloodgood, Sapienza, Almeida, 1996 Delios Beamish, 1999 Grant 1987 Hitt, Hoskisson, Kim, 1997). Studies also show that as a new venture firm gets into the international markets earlier gains better advantages over their competitors and improved performance. (Brock, Yaffe, Dembovsky, 2006). In the view of hospitality terms, a brand visit can be created upon trust and loyalty which is an important factor for c onsecutive visits.Hypothesis Related to Service Innovation and PerformanceService innovation on service performance has been theoretically and empirically confirmed with studies done in recent years. It is confirmed that in differing context of globalization that innovation still improves performance of a firm. Zhou, Yin and Tse (2005) have documented this relationship in their study done in the emerging market of chinaware. As China is a transitioning and developing market, it is only comparable to the market of Malaysia. The comparison of the effects of China to the economy of Hong Kong found that innovation plays a major role in both these markets. (Luk, Yau, Sin, Tse, Chow, Lee, 2008)Scope / LimitationsScope In this study, the author has chosen to conduct the research in all 5 star hotels in the area of the city of Kuala Lumpur. This scope will help dictate and exist city hotels in Malaysia as it is busiest all year round, and the job scopes of the hotels are wide enough to obtain selective information. On a deeper level, a scan will be conducted to all front office staff (e.g. face office attendant, bellboy, front office accountant, etc) in order to obtain information.Limitations As for limitations, time restraints and resource limitations would be the biggest factor. As the author would only have approximately 6 months to collect and analyze the information, the depth of the research whitethorn not be too detailed. Besides that, there will be a limit to research options available to the author due to light knowledge on research ways and as this will be the first research paper done by the author. Notwithstanding, being a student, there will be limitations in terms of access to information because of monetary issues and outlets to gain information in the industry.Significance of StudyThis research paper intends to analyze the different behavioural call for and wants of the front office workforce. By gathering the work backgrounds, studying the m otivation factors and the intentions of this group, a better and effective workforce can be established to be in line with the transitioning aspect of the industry. Ongoing research is a must in this area because of the ever-changing prospects of the Hospitality and Tourism Industry, especially the front office department. Key skills and attributes are to be identified as a benchmark for structure when hiring by the Human Resource department. This paper would be a guideline for the hotel industry players to attain information on the behaviour of front office staff and their intentions for the future. Employing and constantly motivating a workforce is one of the hardest things to keep up in any industry. Without proper information on the behaviour and the intentions of the workforce, being in a labour intensive workforce and service oriented industry, there surely will be a loss in terms of customer satisfaction and the profits of a hotel and this is unacceptable.Chapter 2 Literatu re ReviewHospitality Skills and Nature of Hotel Front berth WorkJobs commonly retain a low-skill character, especially in the riotousest-growing sectorsBradley et al (2002) (p.129)The hospitality sector is growing with a tremendous rate, especially in East Asia and the Pacific, Asia, the Middle East and Africa. These areas are forecasted to show a rate of 5% growth each year and 4.1% in Europe and Americas. (WTO, 2010) There has been long standing debate over the skills and record of the front office work. It is widely characterised in both academic and popular press as a low-skilled job dominated by low skills profile. (Wood, 1997) In support of this theory, Shaw Williams (1994) first claimed that the hospitality industry workforce were uneducated, unmotivated, untrained, unskilled and unproductive (p. 142). Upon further research, the nature of front office work revealed by one side is in terms un-unique (Mullins, 1981 Lashley Morrison, 2000). Mullins and Lashley argue that th e technical skills of the hospitality sector have relevance and can be applied to other sectors of the economy. Another proportion of why there is the public perception that the hospitality industry is regarded as low skilled is because there are no real requisite for employment in terms of qualification (Huddlestone and Hirst, 2004).As far as the research of Baum Devine (2007) and Baum (2007) goes the groomingal attainment of a person is not an influencing factor to undertake the front office job. In terms of front office, the industry has considerable cross-over work of other sectors such as office administration, accounting, and IT systems management, these generic wine skills tend to overlap each other. In this argument, where is the uniqueness of work skill? By any means the hospitality industry is just acceptation a number of skill forces from different industries, in this case with a lower pay wage and a lower career instruction opportunity.This theory of unskilled lab our in the hospitality industry does not go uncontested, in the forthcoming years after the thesis (Baum, 1996, 2002). Baum questions the cogency of hospitality work as a low skilled job universally based solely upon the assumption of westernized, international hospitality work. It whitethorn be perceived so in general, but it is not relevant in the developing world whereby the technical demands and skills are lower than those of the genuine countries.Another such example of a considerable contest comes from ruin (1997), Burns categorizes the labour force into two, skilled and the unskilled. Burns uses a very pellucidive definition of skills in the hospitality for this sayingthe different sectors that check tourism-as-industry take different approaches to the human resources, and that some of these differencesare due to whether or not the employees have a history of being organized (either in terms of trade unions or staff associations with formalised communication procedures. (p.240)Both these factors are separated by manpower planning paradigns for the manufacturing sector and as for the workforce, it comes in traditional power, organization. The workforce takes hold back through the use of trade unions and control the supply of labour through apprenticeship and preparation.Contributing factors worth noting are factors put option forth by Seymour (2000) and Warhurst et al (2000), gives an added dimension to the work of hospitality employees. Seymour adds in emotional labour arguing that the added management of emotions as part of the day to day job is the difference between working in fast food as opposed to traditional areas of service work. The added emotional labour is there for the benefit of guest experience and that they are paid to do it. In Baum T. (2007), it is further perceived that there is the need for emotional intelligence agency (EQ) as defined by Goleman (1998). . . the capacity for recognizing our own feelings and those of others, fo r motivating ourselves, and for managing emotions well in ourselves and in our relationships. (p. 317).Explained by Warhurst et al. (2000) and Witz et al. (2003) the added esthetical labour to the tools of trade is thus of importance to the hospitality workers, especially to front office staff. In describing aesthetic labour it is the skill required to look, sound and behave in a manner that is required for the job while meeting the expectations of the customers. They have to march the ability to engage in different aspects with the customers such as cultural, social, and economical matters. This on hand requires a certain level of education to be obtained.What industry wants employers preferences for develop.In the industry, while representatives state that they prefer industry skills and experience above education skills and knowledge, it is only realistic that a mixture of both these qualities are required, which is privationing in the workforce. (Smith Kemmis, 2010). In th e hospitality industry some of the training is informal. Only a small portion (14%) of employees has gone through higher education in the respective industry. ( 2-1) The other 86% comes from the cliquish sector and employer training in the industry. It was found out in a study that the National Vocational Qualification curriculum, found out that training in higher educational institutes would not cut it in the industry. (People1st,2009) In the same interview, two interviewees stated that on-the-job training is particularly the way to go in an industry that is interaction based in order for skill development. The focus on experience and skill over education is proved in a study done.vocational education and training (VET) practitionersBoth industry groups felt that the close to important skills and knowledge for trainers to take in were related to industry rather than educationThere was a lack of tradition of training in the industries compared with other industries, with relativ ely new qualifications for most jobs, and managers in the industries were underqualified , meaning it was difficult for them to drive high standards in training. granted these circumstances it is perhaps surprising not that training for the service industries exhibits many challenges, but that it does the job as well as it does. This observation was back up by hospitality employers who acknowledged the difficulties faced particularly by TAFE teachers, and were very ready to make excuses on their behalf.The recession, as in Australia, had provided opportunities for cross-fertilisation among industries as people lost their jobs in one sector and looked to move into other work where the skill set was similar (People1st, 2009). The standard of service in both industries was felt to be lower than required (especially in a situation where customer expectations were continually rising), with both industries also reporting a need for improved management skills. The hospitality industry ha d a skill shortage in chefs (People1st, 2009).Customer service is paramount in these industries Maxwell, Watson and Quail (2004, p. 159) point out that for hospitality the customer reigns supreme, and Huddlestone and Hirst (2004, p. 6), for retail, state customer service is becoming the most essential employee skill. In a study of training in the Hilton chain, Maxwell et al. (2004, p. 269) note that a service culture is deeply imbued in organisational structures and practices, and cannot be added on simply by training singular staff.Chapter 3Research Design and Methodology3.1 OverviewIn this chapter of the smack proposal, an rendering on the research methodology and design is written. In the first part of Chapter 3, there will be a brief introduction on the purpose, aims and objectives and benefits of the study. Following that will be a discussion on the research design of the study. Exploratory details such as the population, essay and take procedures are discussed. On the thi rd section of the chapter, there will be added explanation on the data collection procedures and data analysis steps. A brief explanation on the questionnaires will be given to give an insight on the questions asked.3.2 IntroductionThe purpose of this study is to illustrate the current behaviour conditions of the front office. The information gathered will compose of the nature of front office work, education attainment level, skills, work background, attitudes towards the area of work and plans for the future. By analyzing these areas and acquired from these group of people in the hospitality industry will enable the industry players such as managers, policy and decision makers to get a more personal insight look at the wants, needs and future perspectives of these in demand people. Appropriate changes and more effective strategies in regards to high satisfaction levels can be developed and be use in the industry to decrease labour turnover and low level performances.3.3 Research D esignPopulationThe study is intended to collect data on one of the most important workforce in the hospitality industry the front office workers. The population of the retrospect intended will be Front home workers in the area of Kuala Lumpur.SampleThe sample population identified in the survey goes by the different distinct areas of Kuala Lumpur (Table 1). The sampling method that will be apply is Cluster sampling. Having already divided them into different location categories, the target sample is then identified as the front office workforce in hotels.Name of Hotel nation/LocationJW Marriot HotelBukit BintangPark Royal Kuala LumpurBukit BintangThe Ritz Carlton Kuala LumpurBukit BintangThe Westin Kuala LumpurBukit BintangSheraton Imperial Kuala LumpurGolden TriangleHilton Kuala LumpurKL SentralLe Meridien Kuala LumpurKL SentralAscott Kuala LumpurKLCCCrowne Plaza Mutiara Kuala LumpurKLCCHotel Maya Kuala LumpurKLCCHotel Nikko Kuala LumpurKLCCMandarin Oriental Kuala LumpurKLCCMica sa All Suite HotelKLCCPacific Regency Hotel Suites Kuala LumpurKLCCPrince Hotel and signKLCCRenaissance Kuala Lumpur HotelKLCCShangri-La Hotel Kuala LumpurKLCCThe Gardens Hotel and ResidancesMid ValleyPalace of the Golden HorsesMines august Dorsett Subang HotelPetaling JayaHoliday Villa SubangPetaling JayaSunway Resort Hotel and SpaPetaling JayaThe Saujana Kuala LumpurPetaling JayaTable 1For this study, a survey will be carried out on all the 5 star hotels in the city of Kuala Lumpur. On identifying the 5 star hotels located around Kuala Lumpur, the works of KL-Hotels.com were used. This will be verified again byUpon identifying the sample population, a sample frame will be created to categorize the hotels into different location categories for the enablement of easier data managing. An invitation will then be sent out to the General Managers of each selected hotel for approval on participating with the survey. Upon approval, the questionnaires will be distributed among the front o ffice staff of the hotels.3.4 Data Collection Procedure first-string data The data collected from the questionnaire will be the main source of primary data.Secondary data much research has been done regarding the authorisation of a workforce and how to improve. These sources are highly resourceful and will come in helpful when data analysis is been done. The theories and conclusions can be used to support and disregard some of the findings in this study. The secondary data may come from a number of literature forms such as ledger articles, textbooks and written experiences.A formal proposal will be sent out to the General Managers of each of the selected hotels to ensure participation in the survey. Upon approval, the credit of all front office staff is indentified and recorded. As per identifying all the front office workers (night auditors, concierge, bellboy, front office assistant, etc) in the selected hotels, the questionnaire will then be distributed electronically to th e head of the front office department Front Office Manager. After the questionnaire is finished, the questionnaires should be collected and given back for data analysis. The data received will then be analyzed with the help of the SPSS data software. With the help of the SPSS program, bias answers and unreliable answers can be disregarded. As the data is sorted out and conclusions are done, comparisons will be done to reaffirm findings or to oppose them.3.5 Questionnaire DesignThe goal of the questionnaire is to collect data from at heart the front office department. To achieve this, questions pertaining to the nature of the job, the work background, intentions for the future and key skills and attributes will all be posted. In regards to explaining the structure of the questionnaire in sections, there will be 4 sections. The first section of the questionnaire will be in regards to personal details. The second part of the questionnaire will be unlikable ended questions with choice s to choose from. This part of the questionnaire is to get a response from the employees regarding their views on the hospitality industry. The third section of the questionnaire will be about the nature of the front office work, and also to get an inner look to their needs and wants. The fourth and final section is designed to completely give exemption to the respondents with open-ended questions regarding their views on management levels and their thoughts on training and skills in the industry.