The hospitality industry can be defined as the broad group of businesses that offer varied services to the customers. The uniqueness of hospitality industry lies in the fact that it is heavily dependent on discretionary income and free time (Ryan, 2015). It is a multibillion dollar industry which has three primary areas namely accommodations (such as hotels and other lodging businesses), food and beverage (such as fast food chains, restaurants and other establishments) and travel and tourism (such as trains, airlines and cruise ships). However, these days the hospitality industry is being affected by a number of trends which also affect how guests choose restaurants, hotels and entertainment. This assignment critically reviews how hospitality industry is dealing with the changes in consumer behavior in restaurants, accommodation, entertainment and air travel.
According to Zaitseva et. al. (2016), millennials (those between the age of 18 and 34) will represent a major part of travelers by the year 2025. For providing them a wonderful experience, companies are formulating strategies on the basis of habits and personality traits of this demographic group such as more interest in travelling, early adoption of technology and their spontaneous nature. Hotels are making efforts for pleasing them by offering easy check- in facilities and gourmet dining experiences at affordable prices.
According to Kandampully et. al. (2015), the travelers are increasingly becoming tech- savvy and spend most of their time using mobile websites and apps. This consumer behavior has forced the hotels and restaurants to ensure that their offerings are user- friendly and up- to- date. They understand the needs of their customers and offer free Wi-Fi services to them at all times. At conferences and business meetings, travelers expect that the conference centers and hotels will have a knowledgeable support staff and high quality tech equipment.
Pirani and Arafat (2016) highlighted that technology is not the only preference of the customers. The guests are also becoming more conscious regarding their health. Restaurants are responding with spas, pools and well- equipped fitness centres for keeping the interest of the customers into account. Furthermore, innovative wellness options are also expected by the travelers. The customers also prefer healthy food options due to which the restaurants are responding with introducing healthy food items in their menu. Restaurants are also considering the trends of lighting that energizes, in- room exercise equipment, air purification and vitamin- infused shower water.
Wu and Liao (2016) focused on the satisfaction of the customers. The number of last minute bookings has also increased over the past years. The numbers are further expected to grow in the coming years due to the rise of globalization in economic climate. The industry has started offering applications, search tools and new booking services which have facilitated the businesses to make last- minute bookings without increasing their travel and accommodation costs on their trips. Personalization is also considered as the biggest trend in the hospitality industry. The restaurants are personalizing their services such that it can fulfill the needs of the customers. Some restaurants have also introduced voice- activated hotel rooms so that the temperature and lighting can be easily customized by the guests. Restaurants have also started making the use of augmented reality and artificial intelligence for offering personalized entertainment and dining experiences to the visitors.
Jones et.al. (2016) was of the opinion that travel and hospitality industry has learnt the importance of sustainability over time. Sustainability has become equally important for the customers. Solar- powered pool heaters are being installed by the restaurants, hotels, accommodation and entertainment industry. This is being done by them in a cost- effective and creative way and they are making their best possible efforts such that events, facilities and services ca be made as green as possible. Entertainment sector which comprise of beaches, historical monuments, natural reserves, museums, theaters, etc. are also adopting such practices so that they can effectively manage the places for a long period of time.
Kim et.al. (2015) provided that the restaurants and accommodation places are getting more involved in self and destination promotion. This change is the result of the explosion of social media. Accommodation places and restaurants are featuring their guests in tweets and images on their websites and are often using such content their advertising campaigns. They are also offering their customers a platform on Twitter, Facebook, and TripAdvisor where they can complain about their satisfaction. Hoteliers respond to the needs of their customers quickly through these public forums which further allow them to maintain positive relations with the guests and drive future bookings.
Dzhandzhugazova et.al. (2016) highlighted their views on the topic that concluded that customers now prefer using innovative services for handling their day to day requirements. Since customers prefer cost effective ways in their travel and tourism, the industry has also come up with travel apps and online services through which they can easily book their flights, hotels or accommodation options as per their preferences at any time of the day. Furthermore, they are capable of comparing the prices of the services provided by the competitors so that they can make a wise decision based on their paying capacity. Considering the tech- savvy behavior of the customers, restaurants, accommodation places, air travel service providers and entertainment sector also displays the reviews provided to them by the customers so that informed decision can be made by potential customers.
According to Radojevic, et.al. (2015), the air travel industry is also considering the fact that the customers are now more conscious about their travel experience due to which innovative features are being offered by them along with friendly and caring crew so that the customers can have a memorable experience. The features include wireless inflight connectivity, serving pre- flight candies to kids and serving local food. They are also offering the customers with better seat and cabin comfort such as mood lighting, light and smart designs and improved air quality in order to provide them a personalized experience. The air travel industry is also fully aware of the fact that the passengers now want a tailored experience which requires the airlines to focus on increasing their ancillary revenues. They are also paying full attention to the quality of services offered by them to the passengers including inflight entertainment and catering.
As per Schuckert, et. al. (2015), usage of old technologies by the restaurants has also resulted in loss of customers to the competitors. Top hotel and restaurants chains are experimenting with latest technologies for enhancing the experiences of the travelers from booking to check- out. They have also started offering booking option through their mobile apps. This has benefited travelers as well as the hotels and restaurants by reducing waiting times and streamlining the arrival experiences of the attendees.
The literature of Xiang et. al. (2015) provided that the prices of airline industry have reduced due to which the number of international visitors have also increased over a period of time. Therefore, the hospitality industry is also considering providing services in a multitude of languages along with offering them with tailored experiences which suites their culture and meets the requirements of the international visitors.
As per Fong (2016), the entertainment sector such as monuments, museums, etc. are also being provided with seamless connectivity across devices. This action in the hospitality industry has promoted the tourism of the places. Digital concierge services and mobile check- in are also being provided by various hotels and restaurants. Guests are also being issued high- tech cards which can easily detect their presence and performs the function of unlocking the door even before they reach it. Digital devices have been provided to the flight attendants so that they can get easy access to the latest passenger information relating to issues with prior service, personal preferences, etc. in order to provide them with customized service. The analysis provided that those in the industry who have taken the behavior of the customers into consideration have been able to perform well in the market. Such restaurants, entertainment, air travel and accommodation places have also been able to defeat the competitors.
Conclusion
Therefore, it can be concluded that the hospitality industry is greatly affected by a number of trends. Such trends also affect customer demands and their way of choosing hotels, restaurants, accommodation and entertainment. Travelers are increasingly becoming tech- savvy and spend most of their time using mobile websites and apps which requires the restaurant, accommodation and entertainment places to offer free Wi-Fi to the customers so that their offerings remain up- to- date. They are also giving due consideration to the health related aspect and are focusing on personalized services. Air travel services are also being simplified with the help of online bookings and tailored services in relation to inflight entertainment and catering. Therefore, the industry is appropriately responding to the change in the customer behavior.
References
Dzhandzhugazova, E.A., Blinova, E.A., Orlova, L.N. and Romanova, M.M., 2016. Innovations in hospitality industry. International Journal of Environmental and Science Education, 11(17), pp.10387-10400.
Fong, L.H.N., Law, R., Tang, C.M.F. and Yap, M.H.T., 2016. Experimental research in hospitality and tourism: a critical review. International journal of contemporary hospitality management, 28(2), pp.246-266.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management, 28(1), pp.36-67.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management, 27(3), pp.379-414.
Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction, delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism Research, 39(2), pp.170-197.
Pirani, S.I. and Arafat, H.A., 2016. Reduction of food waste generation in the hospitality industry. Journal of Cleaner Production, 132, pp.129-145.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that influence customer satisfaction in the contemporary hospitality industry. Tourism Management, 51, pp.13-21.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International Journal of Contemporary Hospitality Management, 27(3), pp.340-361.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends and future directions.
Wu, P.H. and Liao, J.F., 2016. Service-oriented organizational citizenship behavior, perceived service quality and customer satisfaction in hospitality industry. Journal of Applied Sciences, 16(1), pp.18-24.
Xiang, Z., Wang, D., O’Leary, J.T. and Fesenmaier, D.R., 2015. Adapting to the internet: trends in travelers’ use of the web for trip planning. Journal of Travel Research, 54(4), pp.511-527.
Zaitseva, N.A., Goncharova, I.V. and Androsenko, M.E., 2016. Necessity of changes in the system of hospitality industry and tourism training in terms of import substitution. International Journal of Economics and Financial Issues, 6(1), pp.288-293.
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