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HM 2 – Macro Perspective in Tourism and Hospitality

International Trends and


Issues on the following topics:

I. Accommodation Sector
II. Adventure Tourism and Recreation
Sector
III. Attraction Sector

Submitted by: Submitted to:

Teofilo Kris Nicole C. Ms. Suzette Detoya

BSHM – I Block 2
I. ACCOMMODATION SECTOR: TRENDS AND ISSUES

1. Blockchain - Blockchain is secure and


decentralized data repository that permanently
stores encrypted digital records. Blockchain can
provide a secure method of storing sensitive
customer information, which can be accessed from
more than one location. Hotels can book rooms and
accept payment in a secure, accurate environment
through Blockchain. (Trend)

2. Mobile Devices and Applications –


Hotels with mobile apps like check-in & e-
menu are a big plus when making decisions
on where to stay. More than 50 % of hotel
bookings take place online. Increased hotel
budget to chase customers via online
channels have increased conversion and
boost ROI. (Trend)
3. Software As A Service (SAAS) – SaaS is a
mainstream technology topic in cloud computing, but
is a newer concept within the hotel sector. Infor, a
company that provides advanced software for hotel
enterprises, says 85% of their queries from hotel
accommodation companies are about SaaS. As hotels
become more competitive, they are looking to cut
down on operating costs. Upfront investment in SaaS
is less expensive as there is no initial hardware costs
or no need for full time IT staff to maintain system.
(Trend)

4. Hidden Charges - resort fees aren't just for


resorts anymore. Resort fees, or those small,
often unexpected charges on your hotel bill that
may include amenities such as in-room Wi-Fi
access and on-site parking, are no longer just for
resorts. According to Hanson, resort fees are
becoming commonplace at hotels in urban areas,
too. In New York City, Hanson says there are
currently about 20 hotels that are charging a
service fee that mirrors that of a mandatory resort
fee. (Issue)
5. Improper and ineffective marketing - hotels
have been forced to re-evaluate their marketing
efforts to capture the ever-growing online market.
Unfortunately, although a lot of hotels have
embraced the internet and all aspects of digital
marketing, a lot of hotels are still relying on old
marketing practices. As a result, sales and brand
recognition have suffered immensely, which has
affected the success of some of the businesses.
Current trends reveal that businesses now have to
start moving towards online marketing as a way to
increase ROI. (Issue)

Basing on the aforementioned trends and issues of Accommodation sector, what I can truly say is that the
modernization and globalization of technologies today have paved way to the development of the
accommodation sector. It has greatly impacted booking, and payment systems of hotels and likewise have
promoted a wide-ranged and cost-effective marketing strategy to hotels that accustomed to newly
develop automations. However, the aid of modernized technology to hotel industry have caused
increased hidden charges in hotels. It has also affected ROI of hotels who are yet to incorporate digital
technology to hotel industry.

Other Trends and Issues of Accommodation Sector:

Trends:
1. High-tech hotels
Properties will need to provide top of the line Wi-Fi, audiovisual equipment and other digital
equipment. These amenities are now necessities.
2. Luxurious in-airport accommodations
No more trying to sleep in stiff chairs at the gate during layovers. Yotel and Minute Suites offer hour-
by-hour or overnight hotel rooms inside airport terminals. This provides convenience and comfort in
one hub.
Issues:
1. Customes Expectation
Rahim B. Kanani: “Just as luxury operators today are continually trying to differentiate themselves in
a very competitive industry, this will continue well into the future. Guests will become more and more
demanding for a personalized, exclusive and emotional experience, and luxury hotels will continue to
invest in building out guest profiles to ensure those demands are met…”
2. Competition
The rise of online booking sites like AirBnb and Traveloka draw a competition between peer-to-peer
accomodation market and in an online marketplace. It is different when guests walk into a hotel room,
which offers a total different consistent experience.
3. Sustainability
“Going Green” remains an important issue for the fast growing tourism destinations around the world.
It is important that hotel managers try to redesign the product/services offered, so that they need
fewer environmentally harmful or resource-depleting raw materials.
II. ADVENTURE TOURISM AND RECREATION SECTOR: TRENDS AND ISSUES

1. Solo Travel - This year, more adventure travelers


opt to travel on their own. According to MMGY
Global, about one in four American travelers say
they travel solo. Yoshke Dimen: “The great thing
about Solo Travel not only do we enjoy places from
very different perspectives and with very different
experiences, solo travel also opened myself to an
ocean of possibilities. I gained more confidence,
made new friends, and changed how I look at the
world. (Trend)

2. More Active Wellness Trips - From


blowing up hotel gyms, wellness travelers
have shifted, to adventure-wellness trips. This
means that more and more people goes on a
health-conscious travel where they go from
beach yoga, cycling, aqua Zumba, and even to
Mountain climbing or trekking. (Trend)

3. Sustainable Travel - Along with the rising


consumer and industry interest in eco-tourism,
tour operators and activity providers will need to
incorporate ways to bring sustainability to the
forefront of their offers. Travelers and the tourism
industry are expected now more than ever to
respect the environment and its biodiversity, as
well as the people, local traditions and the culture
of a destination. (Trend)

4. Risk Management - the issue of risk


versus safety is the most distinguishing feature
of adventure tourism. A great deal of research
addresses the apparent contradiction between
safety and risk within the concept of adventure
tourism. On the one hand, a number of authors
argue that without risk, there is no adventure;
it is the very possibility of injury - or even death
- that draws in the adventure tourist, in
particular the hard adventure tourist (Weber 2001; Kane 2010).
5. Managing Environmental Impacts - The close
relationship between adventure tourism operators
and the natural environment inevitably focuses
attention on the potential environmental impacts
of adventure tourism and their associated
management issues. It must be admitted that the
precise measurement of the critical environmental
impacts of adventure tourism operations has so far
been researched to only a limited extent and that,
correspondingly, the impacts of adventure tourism
on sustainability have not yet been fully
documented. (Issue)

Source: (PDF) Adventure tourism: Opportunities and management challenges for SADC destinations. Available from:
https://www.researchgate.net/publication/258529916_Adventure_tourism_Opportunities_and_management_chall
enges_for_SADC_destinations [accessed Aug 23 2018].

Insight

Adventure tourism is one of the most rapidly growing segments or niches of the global tourism economy.
The rapid growth of this sector aids in the development of Hospitality industry in general. Presently, the
adventure and recreation undertaken by most travelers are not only for mere fun and enjoyment but
instead most travelers bask into adventure and recreation that allows themselves to reshape their minds,
body and soul. As time passes by, adventure travelers are also taking action for the environment and
biodiversity through sustainable adventure travel

Other Trends and Issues of Adventure Tourism and Recreation Sector:

Issue:

1. Packaging and marketing ‘adventure’


For Trauer (2006: 183), adventure tour operators are typical “post-industrial capitalists” in that they
are purveyors of an “experience”. It is argued that emotional stimuli or “feelings” and immaterial
goods such as “ambiance, aesthetics and atmosphere” are sold in the adventure tourism industry.
Thus, adventure tour operators need to carefully craft notions of risk and adventure to ensure that
their product, which is a service, matches client expectations (Williams & Soutar 2009).

Trends:

1. Solo Travel and Integration into groups


“Go solo, but not alone” is an Intrepid Travel motto that encompasses the essence of the company’s
group tours built entirely of single travelers. “In our small group setting they can have the comfort of
traveling with like-minded travelers from around the world,” said Nicole Powell of Intrepid Group
North America.
2. Single-Person Itineraries
In addition to offering solo-friendly group tours, a number of companies design customized trips for
solo travelers. Business representatives say the most common reasons why solo travelers seek out
their help is for safety and security reasons. By offering GPS routes and turn-by-turn directions for
self-guided excursions and 24-hour emergency support (often based in-country), solo travelers can go
their own way with peace of mind.
3. Partnership with Travel Agents

“A lot of people don’t realize how many people are using travel agents,” Lungmus said. He also added
that, Adventure travel is definitely a trend among our suppliers, and it’s gotten the attention of our
agents. As the adventure travel market continues to evolve, the opportunities for both consumers
and travel agents are infinite.

III. ATTRACTION SECTOR: TRENDS AND ISSUES

1. Airbnb enters the activity and


attractions space - Airbnb disrupted
the lodging sector, it is going to disrupt
the attractions and restaurant sectors
in the next year or so. Airbnb has added
bookable experiences like ‘learning to
surf and eat like a local’ for $149. It
seems like foodie experiences, cultural
tours and outdoor experiences like
guided hikes and yoga on the beach are popular. This feels like a double-edged sword for a
DMO. On one hand, you have residents creating curated experiences that highlight what is
unique about your area. But on the other hand, you have individuals you don’t know
providing experiences and possibly taking away business from existing attractions. And as an
attraction, you now have new competition for visitor’s time and wallets. (Trend)

2. Escape Rooms - A growing


phenomenon is the rise of Escape Rooms.
These are attractions where 2-6 people are
locked in a room for an hour and have to get
themselves out through solving brain teasers,
puzzles and challenges. There are a variety of
stories surrounding the games, from the
beautifully themed Budapest Express at
Escapology, to the innuendo driven Lady
Chastity’s Reserve game in London; whilst
some like Tick Tock Unlock in the North West
of the UK, keeps the focus on puzzles and
logic. (Trend)
3. “Retailtainment” – Retail
Entertainment - The rise in internet
shopping, has forced shopping centers and
malls to add value by becoming an
‘experience’. Whilst this trend is not new, it
is becoming the norm, with indoor theme
parks and attractions a regular in retail.
Leading the way is edutainment attraction
Kidzania which allows children to take on
roles and jobs in a child-size world, whilst
the parents carry on shopping. (Trend)

4. “O” Mobile Application - In a brave move,


the Museum of Old and New Art (MONA) in
Tasmania has no labels on any of its artifacts.
Instead, it invites guests to use the “O” app on
their smartphones to tour the galleries. The tour
is recorded for guests to refer to later. Visitors
are invited to vote “LOVE” or “HATE” for each
piece and in addition they can access the level of
information that they want depending on what
type of visitor they feel themselves to be:
“summary”, “ideas” and even “Art Wank”!
(Trend)

5. Virtual Reality - As VR technology


matures, a greater focus on content is
improving the visitor experience. VR
headsets are coming down in cost. From
theme parks to museums, zoos to FECs,
leisure operators in all sectors face broadly
the same challenges; attracting visitors,
ensuring they have an amazing experience,
and maximizing ROI. Operators are realizing
that replacing content can revitalize an
existing ride, at a fraction of the price of
building one from scratch. So is VR now an established mainstay of the attractions industry?
It's certainly heading that way. Of the 1,114 companies showcasing new products at the
IAAPA Attractions Expo last year, over 60 of them were promoting VR as part of their range.
With new projects being announced every week, VR-based attractions are here to stay.

Insight:

With the increasing demand from tourist for customized, individual experience new technologies and
innovation are used in the Attraction Sector. It includes Mobile Applications, Virtual Reality, Retail
Entertainment and even escape rooms. The increasing demand of customization from tourists allow the
development of Attraction Sector. Customized demand have paved way to the integration of Modernized
automation to attraction sector. However unexpected concern of undertourism has been brought about
by global modernization.

Other Trends and Issues of Attraction Sector:

Issues:

1. Undertourism: An Unexpected Concern


Its seems that it is possible for one country to suffer from over tourism and Undertourism at the same
time – just in different locations, Undertourism refers to the under visited destinations, especially
those that have built infrastructure and perhaps raised expectations among local residents for
tourists. In 2018, as adventure tourism grows and popular destinations combat over tourism, more
destinations looking to benefit from increased number may suffer from Undertourism.
2. Evolving the offer
With the growth in handheld devices and technology for the home such as on-demand television and
online gaming, attractions are increasingly facing challenges from a greater choice of in-home
entertainment for consumers. Providing live interactive experiences is one way of countering this as
we have seen with the popularity of concerts, festivals and e-sports events. Encouragingly, we are
also seeing attractions step up to the plate to offer unique interactive experiences for their customers.
David Lloyd have announced plans for a series of ‘Adventure Parks’ across the U.K which are multi-
activity centers featuring everything from zip wires to climbing walls and trampolines.

Trend:
1. Attractions and Activities are the new ‘it’ thing
Companies like TripAdvisor/Viator and Expedia have gotten all the big players in the
attraction arena onboard. They are now switching their strategy to adding smaller attractions,
seasonal venues, and activities such as wine and beer tasting tours. Think of Viator as an
additional ticket booth for your attraction. It is also a good place to promote some unique
upscale experiences.

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