Importance of Globalization in Hospitality

Tourism and hospitality industry is the leading service industry worldwide in terms of gross revenue and foreign exchange earnings. Also it is one of the among major employment generators across globe.

The hotel industry is a very hard industry to enter into, due to one of the biggest obstacles, which is brand recognition. Right now there are a few large hotel chains that make a large footprint in the market. It is hard for a new entrant to come into the industry and compete with these large hotel chains without bringing something new to the table. Many large chains in the industry dominate the industry due to economies of scale due to franchising.

The hotel industry is majorly influenced with tourism which nowadays has a global meaning. The factors that affect a hotel industry can come from many countries because the customers can be from anywhere in the world and not just from the country where the hotel is situated. What is more depending on how popular the tourist

Tourism is one of the most international industries. Globalisation is the gradual forging of links between groups and societies until they finally reach around the globe in several directions (Smith, D,2006). Globalization is one of the serious challenges facing managers today. It is critical to develop services that are able to satisfy a highly diverse customer base (Ueltschy et al., 2007) Now to keep up with the rising levels of globalization in the hotel industry, there’s a need to understand not only the positive, but also the negative impacts of globalisation. I’ll also talk about the growth and rise of one of the most respected brands in the hospitality industry - the Hilton Hotels. Throughout the evolution of this famous organization, the Hilton has

Marriott International and Starwood Hotels and Resorts both have different unique selling points enabling them to become large hotel companies. With the merger, both companies will combine their unique qualities to encourage efficiency as well as new hotel developments. These improvements may be able to increase profitability enabling owners to have increase in their revenue (Bethesda, 2016). Due to the large increase in customer base and owning multiple properties all over the world, competition certainly has reduced as a result. Thus, this may lead to monopolization of certain hotel markets increasing profits for existing hotel owners and franchises (Butler, 2016). In addition, as both companies already have their own wide company portfolio and brands, in the long term Marriott International and Starwood Hotels and Resort can take advantage of the opportunity to explore variety of brands within the expansion of their brand families. The exponential increase in their market power and data access may lead to increase in their economies of scale, further increasing their profitability. In addition, the increase market power means the companies will have stronger bargaining power against OTAs, resulting in lower booking fees. Therefore, the reduction in their cost and increasing their appearance on the OTAs being more exposed to potential customers which may further increase their profitability as well as marketing power (Butler, 2016).

Tourism has tremendously grown and developed over the years where it is now considered an industry. The stabilisation of a nation is a must for the development of tourism industry, tourism also helps generate income for the country. There are a wide range of associations that are involved in this industry including the independent hotels. The hotel industry is involved in consortium where they join in one or more associations to increase their buying capacity, and improve or grow their offers of services to target

Marriott is a key player in the hotel and catering industry with operations in more than 70 countries and regions all around the world. Revenue has been earned from the market in both developed and developing countries. In developed markets such as the United States and Canada, the stability enhanced value growth, while in the developing market, stability increased the volume growth. In addition, the global presence guards the company against particular economic

Hospitality industry consists of hotels, restaurants, pubs, bars and nightclubs. Besides, contract food service providers, hospitality services, membership clubs and events, brands and business are also considered as the hospitality industry (Walker, 2016). The hospitality industry is one of the huge and fast-growing industries in the World. One of the reasons is hospitality industry is known as the most sophisticated working sector in nowadays market. There are several types of ownership, such as proprietary ownership, franchise and management contract. Proprietary ownership is known as the direct ownership of a business by a person or a company. There is also chain property which known as a group of hotels that are managed under a company.

Hospitality and Tourism industry is a potential market to create backward and forward linkages that are not only strong but

The hospitality industry in the United States is one of the fastest growing branches of the market economy. The high growth rates of the hotel industry are caused not only by the growth of internal and external economic ties between countries, but also by the growth of foreign tourism. The modern hotel business in the US is a powerful industry, in the full sense of the word. The entire American hotel industry, in the first place, is designed for the domestic tourism market. For example, in Chicago for a year there are 33 million tourists, and only 2 million of them are foreigners.

In the past few years, international hospitality industry has been affected by globalisation, revolution of information technology, fragmentation of customer demand, and the emergence of economic integration of supplier in the networks. Globalisation means a process to reduce the barriers between one country to another (Brotherthon, 2003). Hence, it is a critical issue in the industry where the essence of the product is international and the encounter with the customer is intercultural.

In 1985 Lufthansa bought shares in Kempinski, enabling the traditional German Hotel group to operate hotels abroad. Kempinski, Lufthansa and Rolaco S.A. formed Kempinski Hotels S.A. and the Company's head office was established in Geneva, Switzerland. Its mission was and still is to expand the group globally, while retaining distinctive and individual hotels with history or breathtaking modernity. (Hotels of the world, 2011)

The hospitality industry is part of a larger enterprise known as the travel and tourism industry. It is one of

Industrialization of hotel service and processes of globalization and integration which are typical for global hotel industry led to the situation that hotel chains took an important and valuable position in hotel industry because of perfect organization and because of the fact that they are technically and technologically highly advanced.

The tourism industry employed 39.5 million people. The industry is supposed to grow at the rate of 7.9 percent between 2014 and 2023. Tourists, mainly from the U.S. and UK constitute the bulk of the foreign tourist inflow. And that creates some business opportunity. India ranks at number 65 in the Travel & Tourism Competitiveness Report 2013. The opportunities lie in the field of hotel industry and airlines business. Besides, India is becoming a hub for medical tourism, sports tourism and educational tourism, indicating at the availability of many untapped opportunities.