The Hotel Industry

In general, hotels are locations where travelers can get food, drinks, and lodging services. The hotel sector offers a wide range of products and services connected to hospitality and customer satisfaction. In this sense, the hotel sector of the global economy is the busiest. The term "hotel industry" refers to a group of economic activities that supply meals and other services related to hospitality and tourism. Technically speaking, the hotel industry's commercial foundation includes a wide range of services and products that choose to please both humanity and the economy. Almost all areas of the global economy depend on the hotel sector for the efficient and progressive use of their human resources. Therefore, it forms one of the major engines in running the economy because people need food to function productively.

Historical background and developments

The history of the hotel industry potentially dates back to the era of civilization and creativity in the industrial sectors of the economy. Evidently, the earliest forms of hotels in the industry were established in the early 1970s when the bright merchants within the urban centers recognized the need to bridge the gap in food accessibility among those working in the industrial centers. (Nieves, Julia, & Mercedes, 51-58). These involved a variety of mobile premises within the town centers of various states in the country. As a result, several individuals improvised numerous institutions to accommodate the human populations in the working environments by offering lucrative and spacious business institutions that looked in the demands and social needs of the people within the working culture. The most prominent hotel in the USA was established the New York City, The City Hotel that housed numerous business entities belonging to the elites within the society. Predominantly, thereafter, several other hotel premises erupted in the industry with a global face that targeted huge business competition from the increasing number of scholars in the wake of the nineteenth century, a time when everyone desired a boost in the level of humanitarian services in the economy.

However, facilities offering hospitality and food services are even recorded in the Biblical contexts. The Greeks offered a variety of hospitality services and accommodation to their visitors and travelers during the ancient times. Notably, the foundation of the current generational hotel industry began in France when the first legal application of hotel transaction records was initiated. During this period, the European community began to embrace the culture of embryonic hotel industries to offer food services. This spread over time in the entire continent allowing effective competition in the industry.

Components of the industry

Ideally, the industry has distinctive characteristics in any set of the economy. The most prominent characters include high-level perishable goods, repeated work plan, inability to separate the steps of production and the sales. In addition, most of the process require a lot of labor and cannot be touched in any sector. This implies that it majorly entails service delivery as an industry. Nonetheless, the industry includes the following component. First, lodges: hotels, motels, as well as resorts are the most common components of the hotel industry as a business. This is commonly confused with the sectors of food deliveries and beverages that exist in the restaurants and other food points in the market. Moreover, the industry also engages transportation services that include offering substantive taxi services. At some point, firms engage in retailing and activity-based operations. These include the services targeting recreation and social aspect of the market.

Importance of the industry to the business economy

The hotel industry is an economic pillar in many parts of the world. It offers a variety of services and goods in the economies. Historically, the industry offered institutions for business transactions among individuals and separate firms within the economic zones. The exchange contexts involved accommodation facilities and a variety of mega deals in the business world. Thus, they served a great purpose in the economy in providing some of the most important centers in the economy. One of the major aspects of hotel industry included providing services and delivering goods to strangers. Thus, the level of hospitality and moral care in this sector enable even newly married couples to stay away from their homes just to enjoy the hospitality within the industry.

Secondly, hotels functioned as social sites where people would come from different parts of the societies and initiate a social function. Recreational services may bring individuals from different parts of the world into a common understanding while enjoying the services. Most tourists in the foreign countries use the hotel services as a means to recreating connection in the social gaps within their families and communities as a time free from work and other duties. Additionally, the concept of socialization is applied as the tool for developing economic zones in most parts of the world. Thus, the hotel industry is the most effective economic tool in establishing universal access to diversified cultures in the societies.

Moreover, the industry offered places where the public can assemble to discuss various issues that affect their lives. The most important assemblies involved seminary gatherings in discussing the crucial issues affecting the economy. At the same time, the government stakeholders could organize public assemblies to disseminate critical issues regarding the various economic concerns. These aspects of dissemination help majority of the government agencies to deliver timely messages to the populace through a central platform where people from different backgrounds represent their people.

Some hotels function as political management headquarters in the societies. Ideally, the accommodation facilities have been used in the world at large to display the importance of the political parties. Thus, a politician may decide to rent a facility in the hotel section to allow him or her to run his or her political party affairs in the sections. This way, they serve as a permanent residence for many parties in the political arena as well as among the individuals who are running the parties.

Challenges faced in the industry

One of the major challenges facing the hotel industry is the fluctuation in the level of international travels among citizen. The decrease in the number of foreigners may hugely create an impact in the general revenue of the industry. International security threats have become a menace for the industry owners. Occasionally, the international government substantiates travel advisories that limit the movements of their citizens from their countries to the next. Evidently, the industry dwells on tourism and international movements as the major boom in the revenue sections within the economic progress schedule.

Additionally, the rise in the level of technical competitions sabotages the effectiveness of the traditional premises within the economy. Currently, the rising level of competition from the Airbnb, for instance, threatens the level of development in the market. Thus, the industry faces serious internal competition from the various segments of the market (Hoque, Kim, 50-123).

Moreover, the labor supply in the industry is highly flexible. This leaves the industry with higher levels of uncertainties. The unions for human rights posit changing levels of economic expenses among the employers. Similarly, health needs and desires diversely affect the general level of input in the entire chain of production in the industry. At the same time, many people opt to constantly shift from one urban center to the next creating a very high level of issues regarding urbanization in the market. This way the labor force portrays an unreliable pool within the market. Predominantly, immigration and visas with short lifespan prevent the industry from establishing a stable market base within the economy. In the economic perspective, shift the market demand and factors of production greatly affects the level of development within an industry.

Notably, the operation cost constantly increase in every sector of the economy. Energy and transportation cost have initiated tremendous impacts on the level of progress in the various sections of the industry. In the same way, the rising cost of insurance policies postulates a challenging business environment to operate. Subsequently, the cost of labor becomes very expensive for many of the growing firms in the same industry. Numerous reports indicated the cost of production is directly linked to the cost of the output in the industry. Thus, it has become increasingly hard for smaller firms to operate in most of the world market zones. The communities believe that the hotel industry is crucial in all sectors of the economy. However, they fail to understand the reasons for the constant rise in the pricing schedules of the same industry. Some tend to think that most of the employers are inhuman in their operations within the context of the industrial operations (Horner, Susan, & John, 45-105).

Another challenge in the industry includes the increasing concerns on the level of innovations among the elites in the society. People have gathered information on how to hack and steal from various sectors using the current forms of technology software. As a result, it is technically important to keep researching on the market trends and the innovative ways of using the technology within the scheduled framework.

Moreover, natural disasters have become increasingly unpredictable in most parts of the world today. Currently, the rising cases of reported natural calamities such as floods and droughts deny the industry sufficient resources within the economy. Natural calamities posit a huge potential threat to the stability of the hospitality and tourism sectors.

Growth opportunities

The tremendous rise in the level of technology use in marketing has opened numerous opportunities in the industry paving way to the high level of competition and flexibility among the various sections of the industry. Many accommodation facilities, for instance, have opened social websites where the individuals can access their levels of services delivery in the same sector. Ideally, technology is a very important aspect in the development of the world economies (Zervas, Georgios, David, & John, 23-78).

The world market economies have explored the potential chances of sustainable development in many sectors of the economy. Reports indicate that the elevation in the level of international relations and trade treaties open greater opportunities to the hotel industry. Besides creating a wider market for the perishable goods, it has also created a better way of managing the production cost among many producers. This is because many firms have identified new ways of managing their production cost and the natural resources through the international resource sustainability pillars. Potentially, the rise in new rules and treaties helps smaller firms to manage their wastes and raw materials in an effective way.

Research and innovation help the industry to create and build a strong pool of dedicated talents who can successively survive the trends in the fluctuating market structures in the industry. In addition, the presence of technological gadgets such as the mobile phones, computers, and automated machines opens opportunities for favorable competition among the firms as well as across the industry. The use of websites, social media, and other communication media channels enables the individuals to reach the maximum number of consumers in the market without having to struggle in such community of producers. It also allows the producers to understand the needs of their consumers with no physical connection at a time.

The business enjoys a widely busy market industry that increases the level of revenue generated from other sectors of the industry. A single firm, for instance, may engage numerous business structures. They may sell various foods and offer diversified services under one management within the industry. This makes most of the firms very flexible to the market demands and may opt to stop temporarily when the demand goes down by specializing in other aspects of the market demands within such industry. Even then, the final market may be reached from every sector targeted within the scopes of operation as dictated by demand and supply in the industry (Nieves, Julia, Quintana, & Javier, 65-73).

Conclusion

Concisely, the current generation of hotel industry displays a very high level of transitional development in technology and architecture. Myriad architectural designs have been implemented to accommodate the changing tastes and preferences of the consumers. In the current era, hotels section may include lodges, restaurants, and recreational sites in separate premises to allow smooth flow of the business transaction within the industry. Notably, the hotel industry has developed as one of the most utilized sections of the economy owing to the dynamic reproach in the economy. Serving as a business exchange facility, some of the major premises in the industry have promoted several other sectors of the business world. The hotel specialists have taken greater interests in analyzing and validating the trending factors within the economic zones as dictated by the consumer demand concepts. Therefore, the hotel industry is highly dynamic and derives much of its effective developers from the forums within the technology. Evidently, the social media and the higher use of technology open opportunities for further innovations in this sector of the economy. Facebook and other social media platforms greatly influence the level of sales promotion in the entire industry. Hitherto, the hotel industry has the highest level of flexibility since it monitors and seeks to satisfy the desires of the consumers.





























Work cited

Nieves, Julia, and Mercedes Segarra-Ciprés. "Management innovation in the hotel industry." Tourism Management 46 (2015): 51-58.

Hoque, Kim. Human resource management in the hotel industry: Strategy, innovation, and performance. Routledge, 2013.

Nieves, Julia, Agustín Quintana, and Javier Osorio. "Knowledge-based resources and innovation in the hotel industry." International Journal of Hospitality Management 38 (2014): 65-73.

Zervas, Georgios, Davide Proserpio, and John W. Byers. "The rise of the sharing economy: Estimating the impact of Airbnb on the hotel industry." Journal of Marketing Research (2014).

Horner, Susan, and John Swarbrooke. Consumer behavior in tourism. Routledge, 2016.