Challenges For The Growing Hospitality And Tourism Industries In the United States Of America

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1. Introduction

This essay has as objective analyse the challenges for the growing hospitality and tourism industries in the United States of America, which include the tourism, tourism product, technology and economy. The intention of this study is to try to understand how the mix of hospitality services can be affect in the national and international markets. Why can sanction with China decrease the number of Chinese tourists in the U.S. and how is this going to impact the market? Why can technology be a problem? We are going to try to answer this question and give some recommendations at the end of this essay. The research which is going to be used is the secondary research, such as, websites and articles.

2. Tourism in the United States of America

The United State of America, commonly called U.S. with its 50 states have a strong tourism industry. It is proven through the statistics that the U.S. travel and tourism industry produced more than $1.6 trillion in financial output in 2017, supporting 7.8

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million U.S. jobs. Their numerous attractions, such as: geographical, cultural, gastronomic and study is attracting domestic and international visitants every year. This country has been growing in people’s imagination. Through the decades their movies and advertisements have a magical appeal. The sensation is so strong that a considerable number of people often associate Christmas with snow, Christmas tree, hot chocolate and Times Square, New York.

“This year they are expecting 67 million visitors, only in New York. In All the U.S. this number can increase to 76.9 million. According to Department of Commerce projections, the U.S. will be received 95.5 million international visitors annually by 2023 (nearly twice the amount in 2000). The United States leads the world in international travel and tourism exports and ranks third in terms of total visitation.” (Lenihan, n.d.)

These statistics prove to us how the mix of services can be successful in the hospitality industry. The USA have used this to attract more tourist every year. Providing to then good quality of services, investing in technologies and making this country a consumer dream.

3. Tourism Products

According to Peter Novak, the hospitality industry has four segments: food and beverage, travel and tourism, lodging and recreation. The tourism product can be defined as sum of the physical and psychological pleasure it offers to visitors throughout their travelling in route to the destination. Which included attractions, accommodation and entertainment.

3.1 Tourism Accommodation

Tourism accommodation it’s a huge and important subsector in the hospitality industry. This sector become one of the largest of the three in incomes. This is because this sector cannot be replaced. Every traveller needs to have a place to sleep. Does not matter if is a hotel, Airbnb, camping… According to SelectUSA, in 2017 tourist spent more than $300 billion on visitor accommodations. The tourism accommodation maintains nearly 2.1

million U.S. jobs. It’s possible to observe that, since 2008, the number of hotels in New York City has grown 55 percent to 634 properties and 115,000 rooms. Although the hotel industry has been competing with a increase in private accommodation rentals, such as, Airbnb, hotels still keeping their properties with an attractive rates and loyal guests.

3.2 Activities, attractions and events

Another subsector of the hospitality industry is the activities, attractions and events. That segment in the third largest and accounts 10 percent of global travel revenue. Deloitte believes that billions are going to been invested to attract tourist in different kinds of activities. It’s an important opportunity to create new activities for integrate tours and activities into their digital ecosystems. This have a potential to create new interests. One of the strategies to attract travellers is providing a service where they can travel to a different place in one day. This is called a day tour. The tourist can travel by bus, mini vans by excursions. But it’s possible to see points who needs to improve. This sector has a huge potential to grow and make more revenue, but the market still fragmented. This sector needs to go through the digital transformation and needed to centralize inventory and make online distribution possible on a global scale.

4. Technology

The technology has been growing in different sectors and the hospitality industry have been following this new trend, such as modernizing the booking system, personalizing the customer service and the facilities at the hotel. But, of course, there is an infinite way to use the technology to provide a good and fast service. And according to Deloitte, the relationship between customer and brand becomes truly real-time and relevant.

“Restaurants who leverage the technology are able to link reservations to detailed guest profiles. At any moment on a busy evening, the maître d’ or floor manager can open an app to visualize their floor plan, click on a table, and get to know their guests, identifying first-time diners, allergies, past purchases, and more.”(Deloitte).

Furthermore, for the millenniums who has growing with the advance of the technologies it is extremely important to then be able to have access to Wi-Fi, to interact with platforms such as Facebook, Instagram and Twitter. This generation don’t sped time calling the hotel or restaurant to have a reservation, they look online for reviews and comments in the social media. And if the service it’s not what they expect this can become a problem for a negative marketing as they share their experience online. The big challenge is to offer a service that pleases millenniums and old-fashioned guests.

5. Economy

The economy is subject to uncertainties and numerous variables what makes impossible to predict with 100% what the future holds. But it is knowing that inflation have reduced, the oil prices too and the dollar still strong. According to Alicia Hoisington, it expects that consumer spending will decrease because of the uncertainty around Brexit and China.

“Meanwhile, real gross-domestic-product growth is expected to decelerate to 2.2 percent in the fourth quarter of this year, according to IHS Markit economists. That figure contrasts to 2018’s 3 percent growth in the fourth quarter. In 2020, GDP growth is expected to slow to 1.8 percent in the same quarter.” (Hoisington, 2019)

The recent political tensions between China and U.S. have decreased the number of tourists in the United States of America this year. Simone McCarthy said it was a decreased in 42 % percent of flights booking in comparison to the last year. This is an alarming number, because “Chinese visitors to the US are a small group overall, but their spending power is outsized, ringing up US$34.8 billion in 2016 in retail, accommodation, travel and educational spending, according to US government data.”

6 Final Considerations

This essay has showed the current challenges presented upon United States of America and how it impacts its tourism industry. The report reflects on social, cultural, economic impacts that have challenged tourism in United State of America. It is important to highlight this information, because this sector have a huge impact in the United State of America economy. Every year it expects millions of tourists in the U.S. This represent an enormous revenue. When we talked about hospitality its not only about hotel. This sector is intercalated with restaurants, guide, laundries, transports, events… What have created new post of jobs every year.

The following recommendations are important for the United State of America to overcome these challenges if they want to sustain their growing in the hospitality industry:

  1. To overview the visas requirement to new entrances.
  2. To find an equilibrium between human work and machine work. Where it is possible to offer fast and effective service while maintaining humanized and personal care, attending to millenniums and old-fashioned guests.
  3. Modernize the sector of Activities, attractions and events, becoming possible to access the content all over the world with a simple click.
  4. As far as possible maintain a friendly relationship with other countries, especially those countries that contribute to their economy, such a, Brazil and China.

References

  1. ‘https://www.infoplease.com/us/states’
  2. ‘https://www.selectusa.gov/travel-tourism-and-hospitality-industry-united-states’
  3. ‘https://www.nytimes.com/2019/01/16/nyregion/nyc-tourism-record.html’
  4. ‘https://uk.usembassy.gov/international-visitors-to-u-s-on-the-rise-infographic/’
  5. ‘https://www.selectusa.gov/travel-tourism-and-hospitality-industry-united-states’
  6. ‘https://www.hospitalitynet.org/file/152008343.pdf’
  7. ‘https://www.scmp.com/news/china/society/article/2166157/trade-war-hurts-tourism-chinese-flight-bookings-us-down-42-cent’
  8. Hoisington, A. (2019, August 27). Hotel Management. Retrieved from https://www.hotelmanagement.net/own/economic-uncertainties-could-spell-trouble-for-u-s-hotel-industry
  9. Lenihan, B. (n.d.). Select the USA. Retrieved from https://www.selectusa.gov/travel-tourism-and-hospitality-industry-united-states
  10. McCarthy, S. (2018, September 28). SCMP. Retrieved from https://www.scmp.com/news/china/society/article/2166157/trade-war-hurts-tourism-chinese-flight-bookings-us-down-42-cent
  11. Novak, P. (2017, April 24). Hospitality net. Retrieved from https://www.hospitalitynet.org/opinion/4082318.html

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