Introduction
Globalization means revolutionizing regional and local issues in a way that they will have a global effect (Scholte, 2000, p.). Several global strategies have been infiltrating the hotel industry especially after the major developments realized since the introduction of e-commerce. To counter the effects of globalization, the hotel industry is fronting strategic response to link all the hospitality industries and chains. The effects have affected the market factors in the global level. Globalization has led to drawing of international standardization and economic measurers that can be used world over. Globalization has had its share of effects in literally all sectors of life with its broad geographic presence that is felt in the overseas market.
The concept of globalization has been going on since the transformation that came with the introduction of the Internet in the early 1980s, with some of its elements being cross boarder transfer of capital, management, and data flows among others (Held et al, 2003, p.34). The driving forces behind globalization are the transnational corporations, intergovernmental organizations, non-governmental organization and other multinational companies. The consequences of globalization can either be negative or positive in the humanistic perspective. This paper will look at the issues relating to hospitality industry as affected by contemporary globalization. In this context, the paper will look at the existing challenges that globalization presents to this sector as well as its current and possibly future consequences.
Main Body
Variably therefore globalization is a process that takes the path along distinct dimensions which unite to form a rounded assertion that affects the economy (O’Neill, 2006). When it comes to the relationship that globalization has with the hospitality industry, two concepts are brought into play; that is trans-nationalism and trans-localism, these two terms refer to the act of networking the global society based on cross-boarder territories. With most of the boarder regulations made less stringent during the wake of globalization, it calls for massive improvement in the hospitality sector since it would be one of the busiest industries (Scholte, 2000).
The sector needs nourishment in terms of housekeeping, management and other hand to hand services. Coordination with the other states is however very vital if success is to be realized. “One person working together has got a limit to what he can achieve, but many people working together have no limits to their achievements” (Scholte, 2000). Therefore going by what Scholte believes in, globalization will therefore have effects which are more positive than negatives and depends on any side of the argument. Greater percentage of foreign exchange are driven from international, not local travelers, therefore with globalization; the hotels, motels, inns, resorts, destination spas and sanatoriums will come in handy in offering accommodation to the travelers. The more comfortable, luxurious and dynamic these places will be the benefits reaped from the outcomes (Webster, 2006).
Globalization per se, has been used for a term to suggest some degree of freedom of commodity and capital flows. Contemporary globalization is a process which encompasses the transformation of spatial organization expressed in interregional flows. Globalization therefore in is concept is a four step process as given in (Held et al., 2003); first is the stretching of the political, social and economic activities across the boarders, the next step in intensification, which is networking between concerned multitude for instance flows of investments, trade, finance and culture among others. The third step is the speeding up of process of global interaction and finally deepening impact of world wide interconnectedness. Under these four concepts, contemporary globalization has been identified as a force among other forces that are geared to enhance the world’s development; it does not refer to spatially the entire globe, but some regions are in most cases left out in the moves that are considered global and the major reason that such regions are left behind include are lack of resources or will to tap into the various global trends. Among such regions include some third world countries that suffer poor governance among other reasons.
Apart from unifying the world, contemporary globalization also fragments and heterogenizes the world, thus creating distinctions and unnecessary differences among nations. These differences mainly come as a result of modernization and civilization processes. The hospitality industry encompasses; travel and tourism sector, service support providers, bars and clubs and accommodation spots and many more. All these sectors need to be coordinated in their operations if quality services are to be provided to the customers (Hirst, 2003). Getting to satisfy then needs of the customers (internal an external) is the primary goal of every organization, especially during these times of stiff competition in the world’s market. Globalization does not make things any easier, with more players in the arena; parties have to work harder and smarter in to stay afloat.
Linking with other across the boarders will enable an organization to be cross-cultured in nature hence be in a position to act in the interest of its customers (Hirst, 2003). Globalization has negative and positive effects; though it widens the customer base in the hospitality industry, it is also the sole cause of emergence of stiff competition witnessed in the world market. This fact is a mammoth stumbling block for developing nations with less luxurious services. International visitors or tourists for that matter seem to prefer five star hotels to low class ones, therefore the higher the supply of such healthy services, the more advantaged a country will be although it affects the income of the respective hotels because of the predatory nature of competition that arises. Hospitality services in most cases are more beneficial than the cost of visiting natural attractions or just simply tour, so individuals who invest in attractive hospitality businesses stand better chances of profiting immensely (Sawin et al., 2001).
The process of globalization is the intricate process of spreading over to the corners of the world with effects that homogenizes cultural and economic phenomenon. In the 19th Century, globalization did correspond to the spread of colonialism and nationalism, while that of the 20th Century nourished off post colonialism (Gilpin, 2000). Colonialism has also been reported to be the force behind the emergence of global ruling class that made a mark on the contemporary phase of globalization. The world is faced by tough economic times, which has of cause shaken literally all sectors to their bare foundations. Since the financial crisis is global, strategies put in place to tackle them should also be of global impact; unfortunately most nations safeguard their own interests hampering the whole process. Mid size hospitality companies have therefore modified ways to manage well their cash and at the same time keep satisfying their customers and making profits. Both the transport and other infrastructural facilities have been forced to review their rates of service provision.
A global village as the world is variably referred would witness latest advancements in technology. Profiteering, networking and uniting of all the concerned parties regardless of distance and culture which are the mains aim of globalizing this sector. Contemporary globalization has led to high scale Internet advertisements, establishment of world class amusement parks for all ages, Catering services to bring favorite dishes to the customer’s doors; what is needed is just making an on-line order for your favorites and the deal will be done. Advisory and consulting services can be done on-line to for those who seek to get the best in their trip; this is not done by travel and hospitality agents who may only drum up support for their own companies, but by independent organizations that are out to offer the best advice to travelers. Also in the camp to make the hospitality industry an edge above other industries are the hotel managers with their wonderful services commensurate with costs, interior designers to make rooms a haven for the customers. Cruises, shuttles and limousines are made available for easy means of touring the land (Ratti, 2007).
Globalization has revolutionized Hospitality Industry into a major employer, especially in the field of tourism and catering services. There is need to employ all available strategies to make an organization as dynamic as possible to attract more funs coming from all over the world. To be more particular, entertainment sites have to adapt to this move. Since globalization has made it possible to have a mixed cultures the entertainment industry has to keep pace with the dynamic and varied cultural tastes that are characteristic of the customer’s tastes and preferences. No one will feel left out if the hospitality center takes note of all the individuals under their care. Another important aspect of globalization affecting the hospitality industry is the foods served in restaurants and fast food shops. Days when it was assumed that the foods made available in restaurants are only meant for the locals have passed, and the global village has presented this new challenge that hoteliers have to focus on. Preparing delicacies from every nation where one gets most visitors will attract and retain more customers, thus widen an organizations customer base (Ratti, 2007).
Employees; drawn from white and blue collar sectors in any hospitality organization should be treated by the organization as the first and most importance customers. The organization may be having a big name yes! But if the new international customers first encounter employees who seem not to know much about the company or worse still if they are unfriendly and know very little on the foreign culture (language, morals and values), failure may be inevitable. Professionals absorbed in hospitality industry need to have basic knowledge on legal requirements off cross boarder dealings, procurement procedures and more importantly link up well all the players like traveling agencies, accommodation providers, tour firms and catering service providers. But above all, the countries from which the travelers will be originating from and heading to must have some agreements on how their citizens are to be treated (Sassen, 2008).
With the disparity in wealth and difference in social classes, hospitality industries have to provide services for individuals of all classes. Hotels are made with varied equipment for the comfort of the user. Available equipments range from a simple bed and bath materials to climate control rooms with internet connectivity. Cooking in the hotels is to be done by professional chefs that understand the different preparation methods of delicacies. Foods can either drive away or keep visitors from an organization and since food which is carried by the traveler is not able to take he or she for long, such visitors may be forced to shorten their stay.
Governments and major international organizations like WTO and UN are the chief driving force behind any global move and hospitality. Investments are therefore established by different administrations since they know that they country stand greater chance to reap from revenue earned through the industry, but at the same time, globalization results to political instability by causing rifts among difference among regimes. It upon the government to make its boarders habitable by ensuring that peace, political stability, security and immigration laws are friendly to the global world.
It is also up to the governments identify those who qualify to join the business and organize trainings to industry leaders. Such trainings are to ensure that service delivery by the players in the hospitality department as far as management is concerned. These are taken by the governments because they believe that it is such individuals who represent the face of their country when they travel abroad or receive outsiders into their country among other reasons. Hospitality industry plays a critical stake in the development of any nation, and so any challenges emanating from it are tackled together by the state and the industry leaders themselves. There has been however difficulties in the sector; even though it is one of the most profitable industries in the 21st Century, not much prestige is attached to it, more particularly the workers (Tabb, 2001). Those who work in the hospitality department are assumed as low earners.
Globalization has helped the world to view hospitality services differently, and most governments have committed themselves in addressing difficult issues in the sector. For instance; image– most of the jobs in the hospitality sector have in the past been stereotyped to offer little opportunity for growth and of low wages. Awareness, which is fueled by globalization, is called for to revise this negative feeling, especially among the youth who are unaware of the careers available in the sector and only resort to it as the last option. With high speed globalization drive, recruitment has taken a rapid move, as economic down turn threatens every corner of the world; the only sector which has so far remained elusive is the hospitality industry. Other sectors lay off workers, but this sector is tapping more and more workforce to cater for the needs of the surging number of tourists, hence reducing the pool of unemployment. All these are attributed to globalization and the freedom of movement, in and out of the all the continents. To counter the negative publicity or rather perception that the hospitality industry has been faced with for years, the latest global moves has aided the industry to at least retain their skilled workers. The employee outflow has since reduced since governments came together to give a face lift to it (Webster, 2006).
The industry has also never been held with much importance, and it was just treated by many just like a support sector to other industries, it was not until its importance was unearthed that its benefits were revealed to the concerned parties. The global world has seen the industry reverting to training its employees other languages that are frequently used world over. “There has been a new trend in the hospitality market requiring new recruits to at least be knowledgeable in one or more major languages” (Webster, 2006). Major in this sense refer to English, French, German and Italian among others. It has been an on going trend by most employers to carry out their own private training programs without bringing on board other players in the sector. There has never been set standards to be followed in the industry, making it an uphill task to carry out audit on the performance on the models of training and certification. This trend has since changed with the advent of globalization. Since globalization brings together every player in the world, a central body has been developed to oversee and monitor the activities of these employers to ensure they perform to the required standard (Frank, 2005).
Globalization has opened up new opportunities allowing greater integration in the industry; it has raised customer expectation as well as the quality of services that they now enjoy. Technology has been enhanced to facilitate communication so that cost economies and coordination can be carried out at relatively cheaper rates while maximizing profits. The sector has been being exploited in the past, but opening up boarders in the 21st Century has made the sector to offer opportunities to all, thanks to the well structured institutionalized management practice and market constraints. Even with limited research, the hospitality industry has made itself felt in the world’s economy; it has been a great driver to the latest world economy. Globalization has set in motion the hospitality industry to be recognized world over. Were it not for the global policies made by independent states, the hospitality would not have been where it is now (Zed, 2005).
The problem posed by local and international terrorists can never go unmentioned. As globalization takes a welcoming scene world over and boarder’s opening up, the security threats are making most countries to take a back stance on the treaties into free market and less stringent cross boarder policies. The insecurity has led some countries which believe they are the prime targets holding their citizen from travelling. Many have heeded the advice from their respective governments and have decided to sit on their wallets. This is no good news for the hospitality industry. As if that is not enough, there is the current economic crisis which seems to be a replicate of the 1930s depression. Economists are laying their fears that the recession state may culminate into the dreaded “D” word of depression if something with a global effect is not done. One of the biggest advantages of globalization is the benefits that a good number of individuals have drawn from the adventurers beyond their native boarders. Globalization has played a critical role in spreading awareness of the great hospitality services world over, but the financial position of most individuals can not allow many enjoy this newly founded adventure (Gilpin, 2000).
The political and social instability in most nations is complicating the scene further. The push pull factors in the fight for supremacy have transformed nations which have all along seemed hospitable to simply a shadow of what they used to be. But these negative huddles can be tackled and the best results got out of them; if and only if, the people, the society and the state do a conclusive investigation and know how to separate good from bad strategies. Until then, globalization issues affecting the hospitality sector will always be causing troubles and nations will never come to make the most the outcomes.
Conclusion
Globalization will enable the host country to get exposed to different cultures that will enable the managers of the organization dealing with hospitality service to learn about different cultures as they mingle with individuals from varied walks of life. This will widen their knowledge and boost their service delivery. Globalization also has a positive impact on the larger market of hospitality; as the customer base of an organization increases widely, travelers will not only be moving to enjoy vacations, but for many other reasons like business. Such a move will automatically be beneficial for the hospitality industry which draws its income from international visitors. To the host country, its economy will definitely grow if the visitors unleash their spending there, hence earning it foreign exchange. The economy will therefore grow as globalization keeps bringing money into the host nation (Ohmae, 2004).
As the industry attracts visitors from a foreign nation, it will go for technological advancements; upgrading and improving the services will lead to the country acquiring new technology necessary for sustainable development. Competition in the global market sparks innovation and creativity as each player tries to woe more customers to lean on its side with wonderful creative ideas. With open boarders, more visitors will be streaming into the country, needing attention, thus opening job opportunities in the hospitality industry. Globalization on the hospitality industry has got direct effect on travel industry. Individuals will have to travel to and from their native countries. The transport industry will therefore grow concurrently with globalization in the hospitality sector (Tabb, 2001).
The first problem with globalization in the hospitality industry is overcoming the language and cultural barriers. It is never an easy task for the industry to get to employ individuals who understand all the major languages. Some customers do not even have any idea of shared languages. Communication barriers may lead too the customers getting irate because of the challenges brought about by the differences in mode of communication, providing a very good reason of not making any visit. This language barrier goes hand in hand with cultural barrier; it is an uphill task for those people working in the hospitality to please all their visitors who are originating from different cultural background, since they have different preferences. For instance a Muslim may find himself in a country that is Christian dominated and the natives do not know how to differentiate “Halal” and “Haram” foods. This albeit to a lesser extent may have a bearing about the visitor choosing the region as the preferred destination. There is also the problem of seasonal employment (Hartman et. al., 2007).
During peak days, many people are absorbed by the hospitality organizations and when the visiting period ends the industry lay off their staff leading to less income for the affected individuals and consequently unstable social settings. The blow is definitely big in an open boarder case than a closed boarder country. With increased use in technology, there is loss in the human to human touch thereby driving people out of the job market. Consequently, countries which are unable to keep up with the technological advancement are left out, African and some Asian counties are good example of such countries; however in such countries the lack of technological advancement hampers industrial growth and thus employment opportunities. Environmental depletion is a resultant effect of globalization because of the imbalance it presents to the eco-system. Finally, there is the fear of the natives loosing their cultural pride and values. The hospitality industry may be forced to adapt foreign culture in an attempt to please their visitors and in the process let foreign culture to infiltrate into theirs (Ohmae, 2004).
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