Accommodation Management for Hotel Industry - MyAssignmenthelp.com

Question: Discuss about theAccommodation Managementfor Australian Hotel Industry. Answer: Introduction At the present time, hotel industry is the fast growing industry in the world. It plays a major role in the economic growth of the nation. Along with this, the hotel industry is an important sector of the Australian economy. The industry generates employment opportunities for the people of nation. Currently, approximately 300,000 people are employed in the industry. The Australian hotel industry is recognized for its superior services. Moreover, in todays more complex and challenging business era, hotel industry has been adopted and implemented lots of strategies, innovative business models, and advanced technologies for the growth and success of business. But, it is also facing numerous issues that are influencing the growth, success, and profitability of the business in a negative manner (TAA. 2013). On the other hand, this research essay would be useful to describe the different issues that hotels are facing currently. This essay will demonstrate that how these issues affect the o perations as well as profitability of the property. Furthermore, this essay would be beneficial to provide alternative solutions that may overcome the issues faced by the hotels or hotel industry. Different Issues in the Hotel Industry In current, the Australian hotel industry and hotels of other nations are facing numerous issues that are influencing the growth of the industry. Along with this, the major issues that are commonly faced by the hotel industry of nations are described as below: Changing Labor Conditions: Changing labor conditions is the first major issue that is widely faced by the hotels. The hotels are facing labor and human resources issues in their day to day operational activities. For case, compression of the labor force, unionization issues, immigration health care costs benefits are the major examples of such issues (Jin-zhao and Jing, 2009). The hotel industry is facing challenges in their recruitment process. The main reason behind it is that the traditional labor force is diminishing because of the changes in the working patterns of the hotels. The adoption of advanced technologies has reduced the interests of people in the hotel industry. Along with this, a mutual relationship between the unions and employees is also creating issues to hotel industry. They work to fulfill their interests and personal objectives. They do not want to bind in agreements to do work (Jauhari, 2012). Consequently, this relationship is influencing the day to day opera tions of hotels in a negative manner. On the other hand, the demands or expectations of the employees of hotels are increasing continuously. They demand for the health care costs as well as benefits as reimbursement. These demands are increasing the costs and expenses of the hotels. The increased costs reduce the profitability of hotels in a direct manner (Yang and Cherry, 2008). Moreover, immigration is the other major issue that is faced by the hotel industry of nations. The unemployed people are moving to other nations to get better career growth opportunities. There can be seen an increase in the demand of foreign workforce to perform all the business activities properly. Thus, it is clear that, the rapidly changing labor condition is one of the major issues that the hotel industries or hotels are facing at this time. Due to the changing labor conditions, the operational activities of hotels are affecting. It is because of employees are not ready to perform the business activities; and this thing reduce the productiv ity as well as profitability of hotels (Boella and Goss-Turner, 2013). Increasing Operating Costs: This is the second major issue that the hotel industry is facing. There can be seen an increase in the operating costs of hotels. In other words, it can be said that, operating expenses of hotels are greater than incomes. Hotels spend too much money on their recruitment process due to their continuously shrinking workforce. A shrinking labor force influences the operations and profitability of the hotel industry. It is because of in this situation they are obliged to pay high wages to their employees to retain them for long-time period. These high wages and recruitment expenses increase the operation costs of the hotel industry (Zainal, Radzi, Hashim, Chik and Abu, 2012). On the other hand, hotels are obliged to maintain high quality standards to meet the expectations of their customers properly. In this situation, they have to spend huge money to adopt and implement quality standards within organizations. The high quality standards increase the operating costs of hotels in a direct manner. In addition to this, high competition exists in the hotel industry. Hotels have to spend too much money to achieve competitive advantages over the competitors. The hotel industry makes an effective competitive analysis to know the offerings of their competitors. They make their possible efforts to provide superior services at lower prices. In this case, the operating costs of hotels increase in an automatic manner. Moreover, hotels pay a huge amount of money to maintain their brand images and standards in the marketplace (Beesley and Davidson, 2013). So, the increased operations costs is the other major issue that hotels are facing currently. This issue is affecting the operations and profitability. It is because of increased operating costs influencing the organizational efficiency. There can be seen delay in the operations of hotels. Increase costs directly affect the profitability and revenues of hotels or hotel industry. Marketing Issues: In todays challenging business era, marketing is not an easy task for the hotel industry. It is the biggest difficult tasks in front of organizations. In view of that, marketing issue is another major issue that the hotel industry is facing now (Kashyap, 2014). In todays more competitive business environment, each and every organization makes its possible efforts to promote its products and services in the marketplace. The hotel industry spends too much money on its marketing and promotional activities. Moreover, the industry spends high amount in the segmenting targeting and positioning of hotels. It is well-known that, in current, lots of hotels exist in the market. People are unaware about lots of hotels that situated beside them. So, marketing and advertising is essential to promote a hotel. In this situation, they need to hire marketing experts and also to conduct marketing analysis, competitor analysis, SWOT analysis, etc. to promote a hotel or hotels in a pro per way. These things not only raise the costs of business; but also increase the problems or troubles of the employers (Cummings, Kwansa and Sussman, 2013). Hence, marketing is another serious issue for the hotel industry. Technological Issues: The current era is the era of advanced technologies. Business organizations focus on the advanced technologies to improve the efficiency, productivity, and profitability of businesses. Hotel industry is emphasizing its attention on advanced technologies for the future growth of the business. They want to make use of technologies; so they can make direct interaction with their customers. Moreover, the hotel industry believes that the adoption of technologies will reduce the operations and marketing costs of the hotels. But, the adoption and implementation of technologies is not an easy job. Hotels are facing lots of technological issues in their day to day operations. The main reason behind it is that all the employees of hotels are not aware about these technologies. They do not have the proper knowledge of technologies. They do not know how they may use technologies to operate business activities (Wagen and Goonetilleke, 2015). Hence, hotels are obliged to hire technological experts to provide trainings to their employees. Moreover, they need to hire high educated people to solve issues related to technologies. So, it is the other issue that the industry is facing badly. Alternative Solutions to Overcome these Issues The above discussed are the major issues that are faced by hotels in their operational and business activities. These issues are influencing the operations and revenues of hotels in a negative manner. There are numerous alternation solutions that the hotel industry can use to overcome these issues in an effectual manner. For case, to solve the changing labor conditions issue, hotels should hire only educated people to perform the business activities (TAA. 2012). Moreover, they should clear all the terms and conditions at the time of joining. They should make an agreement with their employees. They should know that if they break an agreement then they are legally bound to pay penalty and costs that they will spend in the recruitment of other person. Along with this, to overcome the other three issues: operating costs issue, marketing issues, and technological issues, hotels should develop specific criteria for all the employees of the organizations. These issues are interrelated. To o vercome these issues, the industry must hire highly skilled experts those may operate their systems in an accurate manner. Moreover, hotels should focus on technologies to promote as well as market their services in the marketplace. The use of advanced technologies will be helpful to reduce the operation costs as well as marketing costs; and to solve technological issues in an effectual and a more comprehensive manner (Maha, 2015). Conclusion On the premise of the above analysis, it can be said that, hotel industry is the fast developing industry all around the world. The industry requires innovative business models and advanced technologies to survive in the marketplace. Along with this, it is also observed that, the hotel industry is facing lots of serious issues including changing labor conditions, operating costs, marketing issues, and technologies issues it its daily operation activities. These issues are dangerous for the current and future growth of the business. Furthermore, there are some important steps that should be taken by the hotel industry to resolve all these issues in an appropriate manner. References Beesley, L.G. and Davidson, M. (2013). A critical Analysis of Skilled Labor Supply and Demand in the Australian Hospitality Industry. Journal of Quality Assurance in Hospitality Tourism, 14(3), pp.264-280. Boella, M.J. and Goss-Turner, S. (2013). Human Resource Management in the Hospitality Industry: A Guide to Best Practice. NY: Routledge. Cummings, P.R., Kwansa, F.A. and Sussman, M. B. (2013). The Role of the Hospitality Industry in the Lives of Individuals and Families. NY: Routledge. Jauhari, V. (2012). Summing up key challenges faced by the hospitality industry in India. Worldwide Hospitality and Tourism Themes, 4(2), pp.203-211. Jin-zhao, W. and Jing, W.A.N.G. (2009). Issues, challenges, and trends, that facing hospitality industry. Management Science and Engineering, 3(4), p.53. Kashyap, G. 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