Leadership in the Hospitality and Tourism Industry

2492 Words 10 Pages
The tourism and hospitality industry is broad and covers travel, accommodation, foodservice, conferences, and leisure and recreation. This report focuses on the passenger airline sector, the hotel sector and the fast-food sector of the industry as a whole. It examines the current state of these sectors and their existing leadership practices. The issues and challenges which the industry and its leadership is likely to face over the next five to ten years are examined and thus recommendations are made for how these challenges may be responded to.
Current state of industry
As the world’s economy became more globalized, the significance of air travel escalated consistently (Hwang, 2011). According to the air traffic report released by
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This policy also allows airlines to optimize their networks within and across continental markets. As a result, traffic flow patterns will change accordingly. Strategic alliance is a second-best solution and will have a reduced role when foreign ownership restrictions are relaxed.
The reformed competitive environment in the air transport industry has been very intense. One of the major highlights since the deregulation process was the ‘low cost airline revolution’ or the development of the new market rivals ‘low-cost carriers (LCCs)’. (Pels, 2008) LCCs newly formed diverse strategies directly have significantly impacted the structure of the existing market players, full-service airlines. LCCs operate on a lower fare in return for reduced service thus enabling cost efficiency, while full service airlines offer premium service with quality. These services are distinguished by the presence of ‘frills’ (Pels, 2008). According to Hwang (2010, p. 391), ‘LCCs ability to consistently offer low fares is due to, simple fare class structure, fly point-to-point service and use of lower traffic airports.’ Other components of its cost convenience structure includes electronic ticketless systems rather than travel agents with commissions, maintaining a high level of flight frequency (Hwang, 2009).
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