Реферат: Analysis Of Hotel Case Study Essay Research

records seem to be broken every day. A very specific trend is the increase in the number of young people (ages 18 to 24) traveling in small groups on vacation. Hospitality operators must take notice of the importance of this

cost-conscious, practical group of travelers. Another identifiable trend is the craving for educational experiences in travel. Travelers want to increase their appreciation of nature and culture by traveling to specific

destinations where the potential for knowledge acquisition is greater. Destinations such as Virginia and some European cities are taking advantage of this situation.

With the opening of doors for gambling operations in many states of the country, there is an increasing social acceptance of this controversial form of entertainment. Many people are recognizing the economic benefits that such operations can bring to local economies, and more people are giving in to the temptation of attending casinos and try their luck. A perfect example of this trend is the increasing number of Native American tribes that are developing casino operations to support their families and preserve their way of life. Hospitality companies in general may take advantage of this shift in social perception to increase income through gaming operations in their establishments.

A final Sociocultural trend that has been present in the industry for quite a while is a concern for safe travel. A 1995 study on choice criteria of leisure travelers concluded that security is a primary decision factor in

choosing airlines, hotels and other travel related companies. Travelers discriminate among different service providers according to their safety records, a factor worth of special attention in the industry.

b. Political environment:

The major themes under both the legislative and lobbying aspects of the political environment concerned regulations on hospitality operations and the application of new taxes to hospitality companies.

Table 5: Distribution of Major Political Environment Aspects

Aspect % of Environment Space

Legislative 68.42%

Lobbying 31.58%

A specific trend concerning regulations on hospitality operations is the close monitoring of casino operations by different state and local government agencies. Many steps have to be followed to obtain permission to open, operate and maintain a gaming operation. Although several restrictions have been removed, it is still very important for gaming companies to be aware of existing regulations to avoid legal complications.

Another relevant issue is the application of new taxes on hospitality and travel companies as part of a new tax plan of the federal government. The U.S. Congress is considering a new airline tax that will severely increase the average price of a ticket and considerably affect the tourism industry of the country. The new tax is part of an income tax reduction plan for individual contributors. The government hopes that this hidden tax will

not be noticed by the general public, but the effect it could have on the travel and tourism industry must be acknowledged. This practice is nothing new. The Tax Reform Act of 1986 also shifted tax contributions from

individuals to corporations, including hospitality and travel companies. It is clear that this industry is already heavily taxed, and further burdens should be avoided. Hospitality operators must keep track of further

developments on this matter to adjust their operations accordingly.

c. Economic environment:

The major trends identified in the economic environment of the hospitality industry include an overall increase in tourism-related economic activity, an increase in the cost of traveling and an acknowledgment of

the potential of tourism as a generator of economic growth and employment.

The analysis undertaken reveals that most tourism destinations are experiencing increased economic activity and increased revenues as a result of tourist visits. It is obvious that the main reason for this trend is the excellent condition of the American economy in general. Many studies have discussed the close relationship between hotel room occupancy and trends in business cycles. Currently, his trend is also coupled with the increasing popularity of travel among the general population. Although a few destinations have experienced some problems due to a variety of external circumstances, the general economic picture in the industry is favorable. A clear sign of this situation is the constant development of tourism facilities (hotels, parks, shopping centers, etc.) nationally and internationally. The rush towards construction of new facilities has also

resulted on an increasing need for financing and capital investments.

Another situation that has surfaced in this environment is the palpable increase in the cost of traveling. According to AAA, for instance, the cost of lodging in the U.S. has increased by 3% in 1997 compared to the

previous year. A result of this economic reality is the increased popularity of motels and other low cost establishments. There is a nationwide boom of motel construction that is mentioned constantly in hospitality publications.

Finally, it has been found that there is an increasing appreciation of the value of the hospitality industry as a creator of jobs and a generator of economic growth. This was the most popular subject in this category. It

is no secret that the hospitality industry is the second in importance globally, and it appears that it will not lose that position in the foreseeable future. An example found in the research process is the situation of Cuba and its reliance on tourism as a way out from its economic difficulties. The tourism sector of Cuba’s economy is closing in on sugar production as the major industry of the country, and it has been a provider of international investment since 1990. With respect to the jobs created by the industry, the adoption of a plan by the eight most industrialized nations of the world (the G7, plus 1) to rely on the industry to provide labor opportunities in each country underpins the favorable outlook of economies where tourism plays an important role.

Table 6: Distribution of Major Economic Environment Aspects

Aspects % of Environment Space

GNP Trends 3.01%