The Impact of Demographics on Hospitality Industry-Free-Samples

Question: Anayse the impact of demographics, social and cultural forces, economic conditions, competition from the existing organizations and technology of the hospitality industry of Australia. Answer: Introduction The hospitality industry refers to a number of fields that belongs to the service industry. Hospitality industry chiefly includes event lodging, transportation, cruise line, event planning, theme parks and other additional fields within the tourism industry. Being an exotic location, Australia is considered to be an ideal destination for hospitality organizations to flourish. In this report, the analysis of the External macro environment of the hospitality industry in Australia will be performed. This report will include analysis of the impact of demographics, social and cultural forces, economic conditions, competition from the existing organizations and technology of the hospitality industry of Australia. Discussion External macro environment The external macro environment analysis includes the uncontrollable factors that impose a high impact on the decision-making of the management of Hospitality organizations in Australia (Czinkota et al., 2014). By analyzing the above-mentioned factors, the Hospitality organizations develop the capability of understanding the market of Australia and this, in turn, will help them to implement effective strategies for enhancing the revenue of the organization. In order to assess the hospitality market of Australia PESTLE analysis has been performed below: Political factors This factor refers to the degree to which the Australian government influences the Hospitality industry of the country. Considering the fact that a huge number of the yearly tax comes from the tourism industry of Australia, the Australian government is highly supportive. According to the latest data, 8.2 million international tourists have visited Australia by the end of the month November. In order to enhance the number of tourists in Australia, the government is providing immense support for establishing fast trains and new airports (Crotts, Buhalis March 2000). Moreover, the Australian government has also approved high rise on a beach front. In order to ensure the security of the tourists as well as the residents of Australia, rapid action to prevent and defend terrorism is taken. Economic factors Being a highly developed country, Australia has a stable economic condition. As a result of its strong economy, the hospitality and tourism industry of Australia has developed the capability to incorporate modern facilities and highly advanced technologies like luxurious hotels, pubs restaurants and technologically advanced transport system. This, in turn, attracts the tourists to a great level. According to researcher, the Australian industry enjoy a revenue of 167 billion dollars by the end of the year 2015 (Kotler et al., 2016). Socio-cultural factors The socio-cultural factors in Australia highly dominate the hospitality industry in Australia. Considering the fact that the society of Australia is multicultural, citizens of Australia are found to have mutual respect and social inclusion. The religious acceptance of the majority of the citizens of Australia is high and this has imposed a highly positive impact on the tourism industry of the nation. However, the declining school population and ageing population of Australia can be considered as a major threat to the Australian Country (Hotel News, Training, Events: professional development for global leaders. 2018). Moreover, while the citizens of the major cities of Australia enjoy advanced facilities and services, individual residing in inner cities suffer from lack of hospitality facilities and services. Technological Being a highly developed country, the technology used by the hospitality industry of Australia is highly advanced. The Companies associated with Hospitality and tourism in Australia have kept the track of the changing attitude of the consumers in this era of modernization. For instance, consumers can easily book seats and order home delivery with the help of their mobile phones or laptops. Moreover, Hotels in Australia are incorporating extra guestrooms and power points for recharging (Travel News, Airline Industry News, Hotel Industry News by Skift. 2018). Along with that, satellite tracking systems along with sophisticated communication is also provided to the consumers to enhance consumer satisfaction as well as consumer loyalty. Legal Some of the legal factors that impose a high impact on the hospitality industry of Australia are health regulations, liquor license and equal employment opportunities. The level of foreign investment is high in the mentioned industry. However, the excessive amount of landing tax for the port, aircraft and dock regulation, imposes a negative impact on the mentioned industry (Research Intelligence Sabre. 2016). Environmental Considering the fact that tourism and hospitality are highly related to the environment of a nation, the Australian environmental laws impose a high impact on the hospitality industry of Australia (Pegg, Patterson Gariddo, 2012). The mentioned industry needs to abide by the environmentally friendly practices that include reducing the usage of plastics, harming endangered species and reducing pollution due to vehicles. Demographic Since the population of Australia is an ageing population, the restaurant and fast food chain of Australia is experiencing a decrement in their overall revenue. This is because the chief consumers of the fast food industry generally include consumers between the age of 15 and 40 years. The majority of the consumers of Australia include Generation X, that is individuals who are born between the years 1960 to 1070. Moreover, due to the increased cultural diversity of the citizens, the Australian hospitality industry needs to cope up with the different cultural choices of each community (Mok, Sparks Kadampully, 2013). Competition The companies associated with the hospitality industry of Australia are chiefly facing 4 types of competitors, namely, the direct competitors, the product competitors, the service competitors and the discretionary competitors. The direct competitors include the manufacturer of similar products and services. For instance, Vue de Monte and Testuya restaurants, two of the most popular retardants in Australia are direct competitors of each other (Pegg, Patterson Gariddo, 2012). Discretionary or indirect competitors of the hospitality organizations of Australia include new entries who are trying to gain consumers loyalty. Organizations also face competition from substitute product or services. For instance, since food chains offer fast services compared to that of restaurants, several office going consumers prefer dining in a food chain outlet rather than a restaurant. Apart from the local competitions, Hospitality industry of Australia also faces competition from the international marke t. Some of its major competitors in the Australian Hospitality industry are hospitality industry of Malaysia, United Kingdom and Europe. Conclusion From the above discussion, it can be concluded that the hospitality industry of Australia is enjoying huge revenue due to its excellent products and services to the consumers. The technological advancement of Australia along with its multicultural society are two major reasons behind the huge success of hospitality industry in Australia. However, some of the challenges faced by the mentioned include the ageing population and lack of services in the inner cities. In order to deal with these issues, the hospitality industry must incorporate effective strategies so that they can enhance their revenue by enhancing the number of consumers. Reference List: Crotts, J., Buhalis, D., and March, R. (Eds). (2000).Global alliances in tourism and hospitality management. New York : Haworth Hospitality Press Czinkota, M., Ronkainen, I., Sutton-Brady, C., Beall, T. (2014). International marketing (3rd Asia Pacific Ed.). South Melbourne, Vic: Cengage Learning Hotel News, Training, Events: professional development for global leaders. (2018). eHotelier. Retrieved 26 April 2018, from https://ehotelier.com/ Kotler, P., Bowen, J.T., Makens, J., Baloglu, S. (2016). Marketing for hospitality and tourism (7th ed.). Boston, MA: Pearson. Middleton, V.T., Fyall, A., Morgan, M. (2009).Marketing in travel and tourism (4th ed.). London, UK : Butterworth-Heinemann. Mok, C., Sparks, B., Kadampully, J. (2013).Service quality management in hospitality, tourism, and leisure. 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