5 scope of hospitality and tourism industry

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What Exactly is the Hospitality Industry? 5 Key Sectors Explained

What is the hospitality industry.

The hospitality industry includes a variety of industries that house, feed, transport, and entertain visitors. Each sector covers a broad range of fields, providing a distinct variety of goods and services. It’s important to note that while separate from one another, they can often overlap and work in conjunction to create one complete and comprehensive hospitality experience. Below, we’ll investigate each sector individually to fully define the hospitality industry.

Five Different Sectors of the Hospitality Industry

While the hospitality industry covers several different services, it can generally be defined through five different sectors. These sectors include food and beverages, lodging, recreation, travel and tourism, and meetings and events. Though each sector is distinct from the next, they often work in conjunction with one another. To learn more about the sectors, what they're comprised of, and how they connect, continue reading below.

1. Food and Beverage Industry

The food and beverage industry consists of the preparation, transportation, and serving of food or beverage to customers. Given the wide variety of options available to customers when it comes to food, this sector has become one of the most successful and easy to identify sectors of the industry. With options ranging from something as simple as a hotel breakfast bar to venues as extravagant as a five-star restaurant, there is no shortage of opportunities in this sector.

Examples of some of the most common food and beverage businesses include:

•Restaurants

•Cafeterias

•Catering companies

•Fast food restaurants

•Third-party delivery services

2. Lodging Industry

The lodging industry consists of businesses that provide overnight accommodations to guests. Depending on the type of service you provide, businesses in the lodging industry can accommodate as few as one or two guests to as many as hundreds. Because of this large range, your experience across different segments of the lodging industry can vary immensely. Below, we’ve listed some of the most common types of lodging businesses:

•Hotels: A hotel is the most common and recognizable type of business in the lodging industry. Often marketed towards vacationers and business travelers, hotels allow guests to rent individual rooms for a set period. Furthermore, hotels often offer their guests a number of amenities such as access to pools, fitness rooms, and complimentary breakfast.

•Vacation rentals: A vacation rental business offers an alternative to traditional hotel stays. These properties are typically owned by individual people or families and listed on websites like Airbnb or Vrbo. They allow travelers to plan a visit for a short amount of time and can often be booked at cheaper prices than hotels.

•Bed and breakfasts: Traditionally, a bed and breakfast is a smaller establishment that accommodates a handful of guests and serves them breakfast in the morning.

3. Recreation Industry

One key sector of the hospitality industry is recreation. In general, businesses in the recreation industry provide customers with ways to entertain themselves, pursue hobbies, or experience educational opportunities. Though they can occasionally last overnight or for long stretches, most recreation can be experienced for just a few hours, such as an afternoon trip. In most cases, businesses in the recreation sector rely on admission tickets, concessions sales, and food and beverage sales to collect revenue.

Below, we've listed some common examples of the recreation industry:

•Amusement parks

•Campgrounds

•Art exhibits

4. Travel and Tourism Industry

Travel and tourism are one of the largest sectors of the hospitality industry. In general, travel and tourism allow people to visit destinations outside of their normal environment. Distance traveled and length of stay vary significantly depending on the context. Some shorter trips can be as brief as a day, such as sleeping overnight while visiting friends or family. Comparatively, some trips can last up to a year, in the case of students studying abroad for a semester.

Of all the sectors in the hospitality industry, the travel and tourism sector has perhaps the most crossover with its counterparts. This is because when people choose to travel, they don't just plan a method of transportation, but rather an entire stay. This can include making reservations such as where to eat, choosing a hotel, identifying attractions they might want to visit, ordering room service, or scheduling business meetings.

5. Meetings and Events Industry

This segment of the hospitality industry consists of a variety of social, business, and sporting events. These events can range from something as intimate as a small wedding to events on a much larger scale, such as an expo. Venues that support the meetings and events industry have become integral to most major cities, not just because of the flexibility they offer, but because of the potential revenue, they can bring in. Because of this, many cities depend on the meetings and events industry to draw people to them and support other local businesses.

Some of the most common types of meetings and events include:

•Sporting events

•Family reunions

•Holiday celebrations

•Business events

•Trade shows

•Farm shows

•Conferences

The hospitality industry is comprised of five sectors that provide a wide range of services and accommodations. Whether you're thinking of going into business in the hospitality industry or just looking to learn more about it, it's important to build an understanding of what each sector does and how they relate to one another.

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Understanding the Hotel Industry: Size, Scope, and Global Significance

The hotel industry, a vital component of the global hospitality sector, is a sprawling and multifaceted domain that plays a significant role in the world economy. It encompasses a wide array of accommodations, from budget motels to luxury resorts, each catering to the diverse needs and preferences of travelers. In this article, we delve into the size and scope of the hotel industry and emphasize its profound importance in the global economy.

Size and Scope of the Hotel Industry

The hotel industry is expansive and dynamic, constantly evolving to meet the demands of a diverse clientele. Its size can be measured in various ways, including the number of establishments, rooms, and, of course, revenue. Let’s explore some key dimensions of the industry:

• Number of Establishments: The hotel industry is home to an extensive network of establishments that vary in size, style, and service offerings. These include hotels, motels, resorts, hostels, boutique hotels, and bed-and-breakfasts. According to 2021 data there were perhaps more than 700,000 hotels worldwide.
• Number of Rooms: The global hotel industry boasts an astonishing number of rooms. In 2019, there were over 17 million hotel rooms worldwide, with significant growth projected in the coming years. This diversity in room types caters to travelers with a range of budgets and preferences.
• Revenue Generation: The hotel industry generates colossal revenues annually. In 2019, the industry’s global revenue surpassed $600 billion, demonstrating its robust economic significance.
• Employment: The hotel sector is also a major employer, offering millions of jobs worldwide. From front desk staff to housekeepers, chefs to concierges, the industry provides employment opportunities at various skill levels.

Importance in the Global Economy

The hotel industry’s significance in the global economy cannot be overstated. Here are some key reasons why it holds such a crucial position:

• Tourism and Travel: Tourism and travel are major contributors to the global economy, and the hotel industry is at the forefront of this sector. It serves as a cornerstone of the travel experience, providing accommodations for both leisure and business travelers. The availability and quality of hotel accommodations often influence travelers’ destination choices.
• Employment and Income Generation: Hotels are labor-intensive businesses, providing employment to a diverse workforce, including skilled professionals and entry-level workers. The income generated by the industry contributes to the livelihoods of millions of individuals and their families, both directly and indirectly.
• Economic Impact: Beyond direct revenue generation, the hotel industry has a far-reaching economic impact. It stimulates various auxiliary industries, such as food and beverage, transportation, and local tourism. When travelers stay in hotels, they often spend money on dining, transportation, and activities in the surrounding area, thereby boosting local economies.
• Cultural Exchange: Hotels serve as cultural hubs, fostering international exchange and understanding. They welcome guests from all corners of the world, creating opportunities for cross-cultural interactions and the sharing of experiences. This cultural exchange has both economic and societal benefits.
• Investment and Development: The hotel industry attracts significant investment, driving infrastructure development and urban growth. New hotels often lead to improved infrastructure in their vicinity, including roads, public transportation, and recreational facilities.

In conclusion, the hotel industry is a global economic powerhouse, characterized by its vast size, diverse offerings, and profound impact on the world economy.

Its role in providing accommodations, generating revenue, creating employment, and facilitating cultural exchange cannot be overstated. As the world continues to evolve, the hotel industry will remain an integral part of the global hospitality landscape, playing a pivotal role in shaping the way we travel, work, and connect with one another.

It is very tough to succeed in this highly competitive hotel industry. You may probably need the help and guidance of experienced professionals who have been involved in the industry from a long time. That is why many hotels join a franchise brand in order to get the assistance, guidance, benefit from the brand name and get other huge benefits.

If you are looking for a super-affordable, franchising brand that doesn’t cost an arm and a leg, get in touch with us at StayExpress

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What Is The Hospitality And Tourism Industry

Published: December 12, 2023

Modified: December 28, 2023

by Ingunna Whipple

• Hotel Reviews
• Sustainability

Introduction

Welcome to the exciting world of the hospitality and tourism industry! This dynamic and ever-growing sector offers an array of opportunities for those with a passion for travel, leisure, and providing exceptional customer experiences. In this article, we will explore the ins and outs of the hospitality and tourism industry, its definition, scope, key players, employment opportunities, challenges, and trends.

The hospitality and tourism industry encompasses a wide range of businesses and services that cater to the needs of travelers, tourists, and individuals seeking leisure activities. It includes establishments such as hotels, resorts, restaurants, airlines, cruise lines, travel agencies, theme parks, and more. These diverse entities all work together to create memorable experiences for guests and visitors.

As global travel continues to increase year after year, the hospitality and tourism industry plays a crucial role in the global economy. Not only does it provide employment opportunities to millions of people worldwide, but it also contributes to the growth of local economies and promotes cultural exchanges between different regions and countries.

Nowadays, people’s expectations for travel and hospitality experiences have evolved. It’s no longer just about offering a comfortable stay or a delicious meal; guests seek unique and personalized experiences that resonate with them. This shift has led to the rise of experiential travel, where travelers immerse themselves in the local culture, try authentic cuisines, and engage in activities that give them a deeper understanding of a destination.

The hospitality and tourism industry is driven by the concept of hospitality, which entails providing an exceptional level of service and attention to guests. Whether it’s warmly welcoming guests at a hotel, anticipating their needs at a restaurant, or ensuring smooth travel arrangements, hospitality professionals strive to create a positive and memorable experience for every visitor.

Furthermore, the industry’s success relies heavily on effective customer service and customer relationship management. Building strong relationships with guests and fostering loyalty are essential for businesses to thrive in this competitive landscape. Word-of-mouth recommendations and positive online reviews have a significant impact on a company’s reputation and customer acquisition.

As we delve deeper into the hospitality and tourism industry, we will uncover the various sub-sectors, discuss the employment opportunities they offer, explore the challenges faced by professionals in the field, and highlight the latest trends shaping the industry’s future. So, let’s embark on this journey together and discover the countless possibilities that await in the vast world of hospitality and tourism.

Definition of Hospitality and Tourism Industry

The hospitality and tourism industry is a dynamic and ever-evolving sector that encompasses a wide range of businesses and services. It revolves around providing exceptional customer experiences to individuals who are seeking leisure activities, travel, and accommodation. This industry plays a crucial role in the global economy, offering employment opportunities to millions of people worldwide and contributing to the growth of local economies.

At its core, the hospitality and tourism industry is defined by its focus on hospitality, which involves delivering outstanding service and creating memorable experiences for guests. Whether it’s a luxury hotel, a quaint bed and breakfast, a fine dining restaurant, or an adventurous travel agency, the industry is united by its commitment to catering to the needs and desires of travelers and tourists.

Tourism, a significant component of the industry, refers to the activities individuals engage in when visiting different destinations. These activities can include sightseeing, exploring cultural landmarks, participating in outdoor adventures, and immersing oneself in the local culture. The tourism sector relies on various services within the hospitality industry to provide comfortable accommodation, dining options, transportation, and entertainment.

The hospitality and tourism industry includes a wide array of businesses and services:

• Hotels and resorts: These establishments provide accommodation for travelers, ranging from budget-friendly options to luxury experiences.
• Restaurants and food services: From casual dining to Michelin-starred restaurants, these establishments offer a variety of culinary experiences.
• Travel agencies and tour operators: These organizations assist individuals in planning and booking their travel arrangements, including flights, accommodations, and itinerary.
• Airlines, cruise lines, and transportation services: These companies facilitate the movement of travelers, providing air, sea, and land transportation options.
• Entertainment and attractions: Theme parks, museums, historical sites, and other attractions offer leisure activities and entertainment for tourists.
• Event planning and management: This sector handles the organization and execution of various events, such as conferences, weddings, and corporate functions.

The hospitality and tourism industry is highly customer-oriented and focuses on creating positive experiences that meet and exceed the expectations of guests. It requires individuals with excellent communication skills, attentiveness, problem-solving abilities, and a genuine passion for providing top-notch service.

As the industry continues to evolve, the definition of hospitality and tourism has expanded beyond traditional boundaries. It now encompasses new trends such as eco-tourism, wellness tourism, experiential travel, and the integration of technology in enhancing guest experiences. This adaptability ensures that the industry remains relevant and responsive to the changing preferences and demands of travelers worldwide.

Scope and Importance of the Hospitality and Tourism Industry

The scope of the hospitality and tourism industry is vast and encompasses a wide range of activities, businesses, and services. From providing accommodation and dining options to organizing travel arrangements and offering entertainment, this industry plays a crucial role in shaping the experiences of travelers and tourists worldwide.

One of the primary purposes of the hospitality and tourism industry is to cater to the needs and desires of individuals seeking leisure activities and travel experiences. It offers a diverse range of services that provide comfort, convenience, and entertainment to guests, ensuring their satisfaction and enjoyment.

One of the key aspects of the industry’s scope is the provision of accommodation options. Hotels, resorts, bed and breakfasts, and other lodging establishments offer visitors a place to stay while exploring a destination. These accommodations can range from budget-friendly options to luxury suites, catering to the preferences and budgets of various travelers.

In addition to accommodation, the industry also encompasses an array of dining options. Restaurants, cafes, food trucks, and other establishments provide visitors with the opportunity to sample local cuisine, indulge in gourmet experiences, or simply grab a quick bite to eat. These dining experiences often add a cultural element to travelers’ journeys, allowing them to savor the flavors of a particular region or country.

The transportation sector is another critical component of the industry’s scope. Airlines, cruise lines, car rental services, and other transportation providers ensure that individuals can reach their desired destinations conveniently and safely. This seamless connectivity helps facilitate travel and allows visitors to explore multiple locations during their trips.

Entertainment and attractions are also significant contributors to the industry’s scope. Theme parks, museums, historical sites, natural landmarks, and other attractions offer leisure activities and unique experiences for tourists. These destinations play a vital role in attracting visitors, increasing local tourism, and promoting cultural exchanges.

The importance of the hospitality and tourism industry cannot be overstated. Economically, it generates substantial revenue for destinations, stimulates local businesses, and creates employment opportunities for millions of people worldwide. It supports a wide range of industries, including hospitality, transportation, food and beverage, and retail.

Socially, the industry encourages cultural exchange, promoting understanding and appreciation of different cultures and traditions. It fosters connections between people from diverse backgrounds, enabling the exchange of ideas, customs, and perspectives.

Furthermore, the hospitality and tourism industry contributes to the preservation and promotion of natural and cultural heritage. By highlighting and showcasing these assets, it raises awareness about the importance of conservation and sustains the value of unique landmarks and ecosystems.

Key Players in the Hospitality and Tourism Industry

The hospitality and tourism industry consists of numerous key players, each playing a crucial role in delivering exceptional experiences to travelers and tourists. These players include a diverse range of businesses and organizations that contribute to the overall success and growth of the industry.

Hotels and resorts are major players in the industry, offering accommodation options to guests. This includes luxury chains, boutique hotels, budget-friendly establishments, and everything in between. These properties provide a variety of amenities and services to ensure a comfortable and enjoyable stay for visitors.

Restaurants and food services are also significant players in the hospitality and tourism industry. From high-end fine dining establishments to casual cafes and street food vendors, these businesses cater to the culinary needs of travelers and locals alike. They offer a wide range of cuisines, flavors, and dining experiences to satisfy diverse palates.

Travel agencies and tour operators play a vital role in planning and organizing travel arrangements. These players assist individuals and groups in booking flights, accommodations, transportation, and activities. They curate itineraries, provide expert guidance, and offer personalized recommendations to create unforgettable travel experiences.

Airlines and cruise lines are essential players in the transportation sector of the industry. They facilitate travel by air and sea, connecting travelers to various destinations around the world. These players focus on providing safe, efficient, and comfortable travel options for guests, ensuring a seamless journey from start to finish.

Attractions and entertainment providers contribute to the industry’s vibrancy and appeal. Theme parks, museums, zoos, national parks, and cultural heritage sites offer unique and engaging experiences for visitors. They showcase local history, art, nature, and provide opportunities for entertainment and adventure.

Event planning and management companies are important players in the industry, organizing conferences, conventions, weddings, and other events. They ensure that every aspect of an event, from venue selection to logistics and execution, meets the highest standards and exceeds the expectations of attendees.

Tourist boards and destination marketing organizations (DMOs) play a critical role in promoting tourism and attracting visitors to specific destinations. They collaborate with businesses, governments, and local communities to develop marketing campaigns, initiatives, and strategies aimed at showcasing the unique offerings and attractions of a place.

In addition to these key players, technology companies have also become increasingly important in the hospitality and tourism industry. Online travel agencies (OTAs), hotel booking platforms, and travel review websites have transformed the way travelers search, book, and review accommodations and experiences. The integration of technology has revolutionized the industry, providing greater convenience and options for travelers.

Collaboration and synergy between these key players are essential for the industry’s success. By working together, they can create seamless, memorable experiences for travelers, enhance destination offerings, and drive the growth and sustainability of the hospitality and tourism industry as a whole.

Sub-Sectors of the Hospitality and Tourism Industry

The hospitality and tourism industry is vast and comprises several sub-sectors that cater to the diverse needs and preferences of travelers and tourists. These sub-sectors offer specialized services and experiences, contributing to the overall richness and appeal of the industry. Let’s explore some of the key sub-sectors:

Hotels and Accommodation: This sub-sector includes various types of lodging options, ranging from luxury hotels and resorts to budget-friendly motels and hostels. It encompasses full-service hotels, boutique properties, bed and breakfasts, serviced apartments, and vacation rentals. Each lodging category provides different amenities, styles, and experiences to cater to the needs of travelers.

Food and Beverage: Restaurants, cafes, bars, and food services form an integral part of the hospitality industry. This sub-sector caters to both locals and tourists, offering a wide array of culinary delights that showcase local and international cuisines. From fine dining establishments to street food vendors, the food and beverage sub-sector delivers diverse and memorable dining experiences.

Travel and Tourism Agencies: This sub-sector encompasses travel agencies, tour operators, and online travel agencies (OTAs). These entities specialize in organizing and facilitating travel arrangements for individuals and groups. Whether it’s booking flights, accommodations, transportation, or activities, travel agencies play a pivotal role in creating seamless and hassle-free travel experiences for customers.

Transportation: Airlines, cruise lines, car rental services, and transportation companies fall under this sub-sector. They ensure the smooth movement of travelers from one destination to another. Airlines connect cities and countries through air travel, while cruise lines offer leisurely journeys by sea. Car rental services and transportation companies provide options for convenient and efficient travel within destinations.

Entertainment and Attractions: This sub-sector comprises a variety of attractions and entertainment venues that enhance the overall travel experience. Theme parks, museums, art galleries, amusement parks, zoos, botanical gardens, and cultural heritage sites all fall under this category. These attractions offer visitors the opportunity to explore local history, culture, and natural beauty, providing unique and engaging experiences.

Event Planning and Management: This sub-sector specializes in organizing and managing various events, such as conferences, conventions, weddings, and exhibitions. Event planning companies coordinate every aspect of an event, including venue selection, logistics, catering, and audiovisual arrangements. They ensure that events run smoothly and leave a lasting impression on attendees.

Destination Marketing: Tourist boards and destination marketing organizations (DMOs) play a crucial role in this sub-sector. They promote specific destinations, highlighting their unique attractions, cultural heritage, and activities to attract visitors. DMOs collaborate with local businesses, governments, and communities to develop marketing campaigns and initiatives that boost tourism and drive economic growth.

Technology and Online Platforms: This emerging sub-sector encompasses technology companies that provide online booking platforms, travel review websites, and other travel-related services. These platforms have revolutionized the way travelers plan, book, and review accommodations and experiences. Through the integration of technology, travelers have access to a vast array of choices and can personalize their travel experiences.

Each sub-sector of the hospitality and tourism industry plays a vital role in creating a comprehensive and enjoyable travel experience. By working together, these sub-sectors contribute to the overall success and growth of the industry, ensuring that travelers have a plethora of options and experiences to choose from.

Employment Opportunities in the Hospitality and Tourism Industry

The hospitality and tourism industry offers a vast array of employment opportunities for individuals with a passion for customer service, travel, and creating memorable experiences. From entry-level positions to managerial roles, this diverse industry provides a wide range of careers that cater to different skills, interests, and qualifications.

Overall, the hospitality and tourism industry is a dynamic and promising field for employment. It offers a wide range of opportunities for individuals seeking a career that combines their passion for travel, customer service, and creating unforgettable experiences. Whether it’s in hotels, restaurants, travel agencies, attractions, or event planning, there is a career path for individuals with diverse backgrounds and interests in this ever-evolving industry.

Challenges and Trends in the Hospitality and Tourism Industry

The hospitality and tourism industry operates in a dynamic and highly competitive environment, continuously evolving to meet the changing needs and expectations of travelers. While the industry offers numerous opportunities, it also faces various challenges. Let’s explore some of the key challenges and trends shaping the industry today.

Challenges:

1. Economic Factors: Economic instability, fluctuating currency rates, and geopolitical issues can significantly impact the industry. Economic downturns can lead to reduced travel budgets and lower consumer spending, affecting businesses’ profitability and sustainability.

2. Seasonality and Demand Variability: Many tourist destinations experience peaks and troughs in visitor numbers due to seasonality. Managing staffing levels, inventory, and operations to meet fluctuating demand can be a complex challenge for businesses.

3. Competition: The industry is highly competitive, with businesses constantly vying for customers. From large hotel chains to online travel agencies and local establishments, businesses must differentiate themselves and offer unique experiences to attract and retain guests.

4. Changing Consumer Behavior: Consumers’ preferences and expectations are continually evolving. Travelers now seek experiential travel, personalized recommendations, sustainable practices, and seamless digital experiences. Adapting to these changing demands requires continual innovation and investment in technology.

5. Technological Advancements: While technology presents opportunities for growth, it also poses challenges. Online booking platforms, review websites, and social media influence consumer decisions and can impact a business’s reputation. Staying up-to-date with technological advancements and leveraging them strategically is key to staying competitive.

1. Sustainable and Responsible Tourism: In response to growing environmental concerns, travelers are embracing sustainable and responsible tourism practices. Businesses are implementing eco-friendly policies, reducing waste, and supporting local communities to meet the rising demand for environmentally conscious travel experiences.

2. Experiential Travel: Travelers are seeking immersive and authentic experiences. They want to connect with local cultures, participate in unique activities, and explore off-the-beaten-path destinations. Businesses are catering to these desires by offering curated experiences, cultural immersion programs, and adventure tourism options.

3. Personalization and Customization: Personalization is a key trend in the industry. Travelers appreciate tailored recommendations and experiences that cater to their specific preferences and interests. Businesses are utilizing technology and data analytics to understand customer preferences and provide personalized offers and services.

4. Technology Integration: Technology continues to transform the industry, with advancements such as artificial intelligence, virtual reality, and mobile apps enhancing customer experiences. Key trends include mobile check-ins, contactless payments, chatbots for customer service, and personalized digital concierge services.

5. Rise of Sharing Economy: The sharing economy, represented by platforms such as Airbnb and Uber, has disrupted traditional hospitality and transportation sectors. It has provided travelers with alternative accommodation options and transportation choices, forcing businesses to adapt and find innovative ways to compete.

By staying informed about these challenges and trends, businesses in the hospitality and tourism industry can adapt their strategies, invest in technology, and provide exceptional experiences that meet the evolving needs and expectations of travelers. The industry’s ability to navigate these challenges and embrace trends will determine its success and resilience in the ever-evolving global marketplace.

The hospitality and tourism industry holds immense potential as a thriving and vibrant sector that caters to the needs of travelers and tourists worldwide. Throughout this article, we have explored the definition, scope, key players, employment opportunities, challenges, and trends of this dynamic industry.

The industry’s definition is centered around providing exceptional service and creating memorable experiences for guests. It encompasses a wide range of businesses and services, including hotels, restaurants, travel agencies, airlines, attractions, and event planning organizations.

The scope and importance of the hospitality and tourism industry cannot be understated. It drives economic growth, generates employment opportunities, fosters cultural exchange, and promotes the preservation of natural and cultural heritage.

The key players in the industry each play a significant role in delivering outstanding experiences to travelers, ensuring their comfort, satisfaction, and enjoyment during their journeys.

The numerous sub-sectors within the industry, such as hotels, food and beverage, travel agencies, attractions, event planning, and technology, offer diverse employment opportunities for individuals with a range of skills and interests.

While the industry presents exciting opportunities, it also faces challenges, including economic factors, competition, changing consumer behavior, and technological advancements. Businesses must embrace these challenges and stay attuned to the latest trends in order to provide exceptional experiences and stay competitive.

The trends shaping the industry, including sustainable and responsible tourism, experiential travel, personalization, technology integration, and the rise of the sharing economy, offer new avenues for growth and innovation for businesses in the industry.

In conclusion, the hospitality and tourism industry is a dynamic and ever-evolving sector that offers a wide range of opportunities for individuals seeking a career that combines their passion for travel, customer service, and creating unforgettable experiences. By adapting to changing consumer preferences, embracing technology, and providing exceptional service, businesses in the industry can continue to thrive and contribute to the growth and success of this exciting and vital industry.

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The future of tourism: Bridging the labor gap, enhancing customer experience

As travel resumes and builds momentum, it’s becoming clear that tourism is resilient—there is an enduring desire to travel. Against all odds, international tourism rebounded in 2022: visitor numbers to Europe and the Middle East climbed to around 80 percent of 2019 levels, and the Americas recovered about 65 percent of prepandemic visitors 1 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. —a number made more significant because it was reached without travelers from China, which had the world’s largest outbound travel market before the pandemic. 2 “ Outlook for China tourism 2023: Light at the end of the tunnel ,” McKinsey, May 9, 2023.

Recovery and growth are likely to continue. According to estimates from the World Tourism Organization (UNWTO) for 2023, international tourist arrivals could reach 80 to 95 percent of prepandemic levels depending on the extent of the economic slowdown, travel recovery in Asia–Pacific, and geopolitical tensions, among other factors. 3 “Tourism set to return to pre-pandemic levels in some regions in 2023,” United Nations World Tourism Organization (UNWTO), January 17, 2023. Similarly, the World Travel & Tourism Council (WTTC) forecasts that by the end of 2023, nearly half of the 185 countries in which the organization conducts research will have either recovered to prepandemic levels or be within 95 percent of full recovery. 4 “Global travel and tourism catapults into 2023 says WTTC,” World Travel & Tourism Council (WTTC), April 26, 2023.

Longer-term forecasts also point to optimism for the decade ahead. Travel and tourism GDP is predicted to grow, on average, at 5.8 percent a year between 2022 and 2032, outpacing the growth of the overall economy at an expected 2.7 percent a year. 5 Travel & Tourism economic impact 2022 , WTTC, August 2022.

So, is it all systems go for travel and tourism? Not really. The industry continues to face a prolonged and widespread labor shortage. After losing 62 million travel and tourism jobs in 2020, labor supply and demand remain out of balance. 6 “WTTC research reveals Travel & Tourism’s slow recovery is hitting jobs and growth worldwide,” World Travel & Tourism Council, October 6, 2021. Today, in the European Union, 11 percent of tourism jobs are likely to go unfilled; in the United States, that figure is 7 percent. 7 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022.

There has been an exodus of tourism staff, particularly from customer-facing roles, to other sectors, and there is no sign that the industry will be able to bring all these people back. 8 Travel & Tourism economic impact 2022 : Staff shortages, WTTC, August 2022. Hotels, restaurants, cruises, airports, and airlines face staff shortages that can translate into operational, reputational, and financial difficulties. If unaddressed, these shortages may constrain the industry’s growth trajectory.

The current labor shortage may have its roots in factors related to the nature of work in the industry. Chronic workplace challenges, coupled with the effects of COVID-19, have culminated in an industry struggling to rebuild its workforce. Generally, tourism-related jobs are largely informal, partly due to high seasonality and weak regulation. And conditions such as excessively long working hours, low wages, a high turnover rate, and a lack of social protection tend to be most pronounced in an informal economy. Additionally, shift work, night work, and temporary or part-time employment are common in tourism.

The industry may need to revisit some fundamentals to build a far more sustainable future: either make the industry more attractive to talent (and put conditions in place to retain staff for longer periods) or improve products, services, and processes so that they complement existing staffing needs or solve existing pain points.

One solution could be to build a workforce with the mix of digital and interpersonal skills needed to keep up with travelers’ fast-changing requirements. The industry could make the most of available technology to provide customers with a digitally enhanced experience, resolve staff shortages, and improve working conditions.

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Complementing concierges with chatbots.

The pace of technological change has redefined customer expectations. Technology-driven services are often at customers’ fingertips, with no queues or waiting times. By contrast, the airport and airline disruption widely reported in the press over the summer of 2022 points to customers not receiving this same level of digital innovation when traveling.

Imagine the following travel experience: it’s 2035 and you start your long-awaited honeymoon to a tropical island. A virtual tour operator and a destination travel specialist booked your trip for you; you connected via videoconference to make your plans. Your itinerary was chosen with the support of generative AI , which analyzed your preferences, recommended personalized travel packages, and made real-time adjustments based on your feedback.

Before leaving home, you check in online and QR code your luggage. You travel to the airport by self-driving cab. After dropping off your luggage at the self-service counter, you pass through security and the biometric check. You access the premier lounge with the QR code on the airline’s loyalty card and help yourself to a glass of wine and a sandwich. After your flight, a prebooked, self-driving cab takes you to the resort. No need to check in—that was completed online ahead of time (including picking your room and making sure that the hotel’s virtual concierge arranged for red roses and a bottle of champagne to be delivered).

While your luggage is brought to the room by a baggage robot, your personal digital concierge presents the honeymoon itinerary with all the requested bookings. For the romantic dinner on the first night, you order your food via the restaurant app on the table and settle the bill likewise. So far, you’ve had very little human interaction. But at dinner, the sommelier chats with you in person about the wine. The next day, your sightseeing is made easier by the hotel app and digital guide—and you don’t get lost! With the aid of holographic technology, the virtual tour guide brings historical figures to life and takes your sightseeing experience to a whole new level. Then, as arranged, a local citizen meets you and takes you to their home to enjoy a local family dinner. The trip is seamless, there are no holdups or snags.

This scenario features less human interaction than a traditional trip—but it flows smoothly due to the underlying technology. The human interactions that do take place are authentic, meaningful, and add a special touch to the experience. This may be a far-fetched example, but the essence of the scenario is clear: use technology to ease typical travel pain points such as queues, misunderstandings, or misinformation, and elevate the quality of human interaction.

Travel with less human interaction may be considered a disruptive idea, as many travelers rely on and enjoy the human connection, the “service with a smile.” This will always be the case, but perhaps the time is right to think about bringing a digital experience into the mix. The industry may not need to depend exclusively on human beings to serve its customers. Perhaps the future of travel is physical, but digitally enhanced (and with a smile!).

Digital solutions are on the rise and can help bridge the labor gap

Digital innovation is improving customer experience across multiple industries. Car-sharing apps have overcome service-counter waiting times and endless paperwork that travelers traditionally had to cope with when renting a car. The same applies to time-consuming hotel check-in, check-out, and payment processes that can annoy weary customers. These pain points can be removed. For instance, in China, the Huazhu Hotels Group installed self-check-in kiosks that enable guests to check in or out in under 30 seconds. 9 “Huazhu Group targets lifestyle market opportunities,” ChinaTravelNews, May 27, 2021.

Technology meets hospitality

In 2019, Alibaba opened its FlyZoo Hotel in Huangzhou, described as a “290-room ultra-modern boutique, where technology meets hospitality.” 1 “Chinese e-commerce giant Alibaba has a hotel run almost entirely by robots that can serve food and fetch toiletries—take a look inside,” Business Insider, October 21, 2019; “FlyZoo Hotel: The hotel of the future or just more technology hype?,” Hotel Technology News, March 2019. The hotel was the first of its kind that instead of relying on traditional check-in and key card processes, allowed guests to manage reservations and make payments entirely from a mobile app, to check-in using self-service kiosks, and enter their rooms using facial-recognition technology.

The hotel is run almost entirely by robots that serve food and fetch toiletries and other sundries as needed. Each guest room has a voice-activated smart assistant to help guests with a variety of tasks, from adjusting the temperature, lights, curtains, and the TV to playing music and answering simple questions about the hotel and surroundings.

The hotel was developed by the company’s online travel platform, Fliggy, in tandem with Alibaba’s AI Labs and Alibaba Cloud technology with the goal of “leveraging cutting-edge tech to help transform the hospitality industry, one that keeps the sector current with the digital era we’re living in,” according to the company.

Adoption of some digitally enhanced services was accelerated during the pandemic in the quest for safer, contactless solutions. During the Winter Olympics in Beijing, a restaurant designed to keep physical contact to a minimum used a track system on the ceiling to deliver meals directly from the kitchen to the table. 10 “This Beijing Winter Games restaurant uses ceiling-based tracks,” Trendhunter, January 26, 2022. Customers around the world have become familiar with restaurants using apps to display menus, take orders, and accept payment, as well as hotels using robots to deliver luggage and room service (see sidebar “Technology meets hospitality”). Similarly, theme parks, cinemas, stadiums, and concert halls are deploying digital solutions such as facial recognition to optimize entrance control. Shanghai Disneyland, for example, offers annual pass holders the option to choose facial recognition to facilitate park entry. 11 “Facial recognition park entry,” Shanghai Disney Resort website.

Automation and digitization can also free up staff from attending to repetitive functions that could be handled more efficiently via an app and instead reserve the human touch for roles where staff can add the most value. For instance, technology can help customer-facing staff to provide a more personalized service. By accessing data analytics, frontline staff can have guests’ details and preferences at their fingertips. A trainee can become an experienced concierge in a short time, with the help of technology.

Apps and in-room tech: Unused market potential

According to Skift Research calculations, total revenue generated by guest apps and in-room technology in 2019 was approximately $293 million, including proprietary apps by hotel brands as well as third-party vendors. 1 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. The relatively low market penetration rate of this kind of tech points to around $2.4 billion in untapped revenue potential (exhibit).

Even though guest-facing technology is available—the kind that can facilitate contactless interactions and offer travelers convenience and personalized service—the industry is only beginning to explore its potential. A report by Skift Research shows that the hotel industry, in particular, has not tapped into tech’s potential. Only 11 percent of hotels and 25 percent of hotel rooms worldwide are supported by a hotel app or use in-room technology, and only 3 percent of hotels offer keyless entry. 12 “Hotel tech benchmark: Guest-facing technology 2022,” Skift Research, November 2022. Of the five types of technology examined (guest apps and in-room tech; virtual concierge; guest messaging and chatbots; digital check-in and kiosks; and keyless entry), all have relatively low market-penetration rates (see sidebar “Apps and in-room tech: Unused market potential”).

While apps, digitization, and new technology may be the answer to offering better customer experience, there is also the possibility that tourism may face competition from technological advances, particularly virtual experiences. Museums, attractions, and historical sites can be made interactive and, in some cases, more lifelike, through AR/VR technology that can enhance the physical travel experience by reconstructing historical places or events.

Up until now, tourism, arguably, was one of a few sectors that could not easily be replaced by tech. It was not possible to replicate the physical experience of traveling to another place. With the emerging metaverse , this might change. Travelers could potentially enjoy an event or experience from their sofa without any logistical snags, and without the commitment to traveling to another country for any length of time. For example, Google offers virtual tours of the Pyramids of Meroë in Sudan via an immersive online experience available in a range of languages. 13 Mariam Khaled Dabboussi, “Step into the Meroë pyramids with Google,” Google, May 17, 2022. And a crypto banking group, The BCB Group, has created a metaverse city that includes representations of some of the most visited destinations in the world, such as the Great Wall of China and the Statue of Liberty. According to BCB, the total cost of flights, transfers, and entry for all these landmarks would come to $7,600—while a virtual trip would cost just over $2. 14 “What impact can the Metaverse have on the travel industry?,” Middle East Economy, July 29, 2022.

The metaverse holds potential for business travel, too—the meeting, incentives, conferences, and exhibitions (MICE) sector in particular. Participants could take part in activities in the same immersive space while connecting from anywhere, dramatically reducing travel, venue, catering, and other costs. 15 “ Tourism in the metaverse: Can travel go virtual? ,” McKinsey, May 4, 2023.

The allure and convenience of such digital experiences make offering seamless, customer-centric travel and tourism in the real world all the more pressing.

Three innovations to solve hotel staffing shortages

Is the future contactless.

Given the advances in technology, and the many digital innovations and applications that already exist, there is potential for businesses across the travel and tourism spectrum to cope with labor shortages while improving customer experience. Process automation and digitization can also add to process efficiency. Taken together, a combination of outsourcing, remote work, and digital solutions can help to retain existing staff and reduce dependency on roles that employers are struggling to fill (exhibit).

Depending on the customer service approach and direct contact need, we estimate that the travel and tourism industry would be able to cope with a structural labor shortage of around 10 to 15 percent in the long run by operating more flexibly and increasing digital and automated efficiency—while offering the remaining staff an improved total work package.

Outsourcing and remote work could also help resolve the labor shortage

While COVID-19 pushed organizations in a wide variety of sectors to embrace remote work, there are many hospitality roles that rely on direct physical services that cannot be performed remotely, such as laundry, cleaning, maintenance, and facility management. If faced with staff shortages, these roles could be outsourced to third-party professional service providers, and existing staff could be reskilled to take up new positions.

In McKinsey’s experience, the total service cost of this type of work in a typical hotel can make up 10 percent of total operating costs. Most often, these roles are not guest facing. A professional and digital-based solution might become an integrated part of a third-party service for hotels looking to outsource this type of work.

One of the lessons learned in the aftermath of COVID-19 is that many tourism employees moved to similar positions in other sectors because they were disillusioned by working conditions in the industry . Specialist multisector companies have been able to shuffle their staff away from tourism to other sectors that offer steady employment or more regular working hours compared with the long hours and seasonal nature of work in tourism.

The remaining travel and tourism staff may be looking for more flexibility or the option to work from home. This can be an effective solution for retaining employees. For example, a travel agent with specific destination expertise could work from home or be consulted on an needs basis.

In instances where remote work or outsourcing is not viable, there are other solutions that the hospitality industry can explore to improve operational effectiveness as well as employee satisfaction. A more agile staffing model  can better match available labor with peaks and troughs in daily, or even hourly, demand. This could involve combining similar roles or cross-training staff so that they can switch roles. Redesigned roles could potentially improve employee satisfaction by empowering staff to explore new career paths within the hotel’s operations. Combined roles build skills across disciplines—for example, supporting a housekeeper to train and become proficient in other maintenance areas, or a front-desk associate to build managerial skills.

Where management or ownership is shared across properties, roles could be staffed to cover a network of sites, rather than individual hotels. By applying a combination of these approaches, hotels could reduce the number of staff hours needed to keep operations running at the same standard. 16 “ Three innovations to solve hotel staffing shortages ,” McKinsey, April 3, 2023.

Taken together, operational adjustments combined with greater use of technology could provide the tourism industry with a way of overcoming staffing challenges and giving customers the seamless digitally enhanced experiences they expect in other aspects of daily life.

In an industry facing a labor shortage, there are opportunities for tech innovations that can help travel and tourism businesses do more with less, while ensuring that remaining staff are engaged and motivated to stay in the industry. For travelers, this could mean fewer friendly faces, but more meaningful experiences and interactions.

Urs Binggeli is a senior expert in McKinsey’s Zurich office, Zi Chen is a capabilities and insights specialist in the Shanghai office, Steffen Köpke is a capabilities and insights expert in the Düsseldorf office, and Jackey Yu is a partner in the Hong Kong office.

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Chapter 1. History and Overview

1.1 What is Tourism?

Before engaging in a study of tourism , let’s have a closer look at what this term means.

Definition of Tourism

There are a number of ways tourism can be defined, and for this reason, the United Nations World Tourism Organization (UNWTO) embarked on a project from 2005 to 2007 to create a common glossary of terms for tourism. It defines tourism as follows:

Tourism is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes. These people are called visitors (which may be either tourists or excursionists; residents or non-residents) and tourism has to do with their activities, some of which imply tourism expenditure (United Nations World Tourism Organization, 2008).

Using this definition, we can see that tourism is not just the movement of people for a number of purposes (whether business or pleasure), but the overall agglomeration of activities, services, and involved sectors that make up the unique tourist experience.

Tourism, Travel, and Hospitality: What are the Differences?

It is common to confuse the terms tourism , travel , and hospitality or to define them as the same thing. While tourism is the all-encompassing umbrella term for the activities and industry that create the tourist experience, the UNWTO (2020) defines travel as the activity of moving between different locations often for any purpose but more so for leisure and recreation (Hall & Page, 2006). On the other hand, hospitality can be defined as “the business of helping people to feel welcome and relaxed and to enjoy themselves” (Discover Hospitality, 2015, p. 3). Simply put, the hospitality industry is the combination of the accommodation and food and beverage groupings, collectively making up the largest segment of the industry (Go2HR, 2020). You’ll learn more about accommodations and F & B in Chapter 3 and Chapter 4 , respectively.

Definition of Tourist and Excursionist

Building on the definition of tourism, a commonly accepted description of a tourist is “someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons” (LinkBC, 2008, p.8). The United Nations World Tourism Organization (1995) helps us break down this definition further by stating tourists can be:

• Domestic (residents of a given country travelling only within that country)
• Inbound (non-residents travelling in a given country)
• Outbound (residents of one country travelling in another country)

Excursionists  on the other hand are considered same-day visitors (UNWTO, 2020). Sometimes referred to as “day trippers.” Understandably, not every visitor stays in a destination overnight. It is common for travellers to spend a few hours or less to do sightseeing, visit attractions, dine at a local restaurant, then leave at the end of the day.

The scope of tourism, therefore, is broad and encompasses a number of activities and sectors.

Spotlight On: United Nations World Tourism Organization (UNWTO)

UNWTO is the United Nations agency responsible “for the promotion of responsible, sustainable and universally accessible tourism” (UNWTO, 2014b). Its membership includes 159 countries and over 500 affiliates such as private companies, research and educational institutions, and non-governmental organizations. It promotes tourism as a way of developing communities while encouraging ethical behaviour to mitigate negative impacts. For more information, visit the UNWTO website .

NAICS: The North American Industry Classification System

Given the sheer size of the tourism industry, it can be helpful to break it down into broad industry groups using a common classification system. The North American Industry Classification System (NAICS) was jointly created by the Canadian, US, and Mexican governments to ensure common analysis across all three countries (British Columbia Ministry of Jobs, Tourism and Skills Training, 2013a). The tourism-related groupings created using NAICS are (in alphabetical order):

• Accommodation
• Food and beverage services (commonly known as “F & B”)
• Recreation and entertainment
• Transportation
• Travel services

These industry groups (also commonly known as sectors) are based on the similarity of the “labour processes and inputs” used for each (Government of Canada, 2013). For instance, the types of employees and resources required to run an accommodation business whether it be a hotel, motel, or even a campground are quite similar. All these businesses need staff to check in guests, provide housekeeping, employ maintenance workers, and provide a place for people to sleep. As such, they can be grouped together under the heading of accommodation. The same is true of the other four groupings, and the rest of this text explores these industry groups, and other aspects of tourism, in more detail.

It is typical for the entire tourist experience to involve more than one sector. The combination of sectors that supply and distribute the needed tourism products, services, and activities within the tourism system is called the Tourism Supply Chain. Often, these chains of sectors and activities are dependent upon each other’s delivery of products and services. Let’s look at a simple example below that describes the involved and sometimes overlapping sectoral chains in the tourism experience:

Before we seek to understand the five tourism sectors in more detail, it’s important to have an overview of the history and impacts of tourism to date.

Long Descriptions

Figure 1.2 long description: Diagram showing the tourism supply chain. This includes the phases of travel and the sectors and activities involved during each phase.

There are three travel phases: pre-departure, during travel, and post-departure.

Pre-departure, tourists use the travel services and transportation sectors.

During travel, tourists use the travel services, accommodations, food and beverage, recreation and entertainment, and transportation sectors.

Post-departure, tourists use the transportation sector.

[Return to Figure 1.2]

Media Attributions

• Front Desk by Staying LEVEL is licensed under a CC BY-NC 4.0 Licence .

Tourism according the the UNWTO is a social, cultural and economic phenomenon which entails the movement of people to countries or places outside their usual environment for personal or business/professional purposes.

UN agency responsible for promoting responsible, sustainable, and universally accessible tourism worldwide.

Moving between different locations for leisure and recreation.

The accommodations and food and beverage industry groupings.

someone who travels at least 80 km from his or her home for at least 24 hours, for business or leisure or other reasons

A same-day visitor to a destination. Their trip typically ends on the same day when they leave the destination.

A way to group tourism activities based on similarities in business practices, primarily used for statistical analysis.

Introduction to Tourism and Hospitality in BC - 2nd Edition Copyright © 2015, 2020, 2021 by Morgan Westcott and Wendy Anderson, Eds is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Tourism, Travel and Hospitality

• Getting Started

Defining Hospitality and Tourism

Selected naics codes for hospitality and tourism.

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Both hospitality and tourism are umbrella terms for a wide range of commercial activities. For example, the hospitality industry consists of lodging, food services in restaurants, planes and cruise ships, clubs, cafeterias, hospitals, etc.; and recreational facilities ranging from casinos to resorts. The tourism industry supports a traveler's need for transportation, food, lodging, amusement, and entertainment. It involves tour operators, rental cars, hotels, bars, gasoline stations, theme parks, and attractions.

While sometimes both terms are used interchangeably, they are not quite synonymous. The tourism industry serves people away from home. Hospitality also includes businesses that serve people in their local town. 

Source: Zabel, D. (2003). The Best of the Web: Hospitality and Tourism Web Sites . Journal of Business & Finance Librarianship, 8 (3/4), 167-179. 

Identifying an industry code is the first step in your industry research. Below is a selected list of  NAICS codes for hospitality and tourism research. Use this link to look up the scope and definition of these codes.

• Look Up 2022 NAICS Code
• 483112 Deep Sea Passenger Transportation
• 483114 Coastal and Great Lakes Passenger Transportation
• 483212 Inland Water Passenger Transportation
• 487110 Scenic and Sightseeing Transportation, Land
• 487210 Scenic and Sightseeing Transportation, Water
• 488999 All Other Support Activities for Transportation
• 561510 Travel Agencies
• 561520 Tour Operators
• 561591 Convention and Visitors Bureaus
• 713110 Amusement and Theme Parks
• 713120 Amusement Arcades
• 713210 Casinos (except Casino Hotels)
• 713290 Other Gambling Industries
• 713910 Golf Courses and Country Clubs
• 713920 Skiing Facilities
• 713930 Marinas
• 713940 Fitness and Recreational Sports Centers
• 713950 Bowling Centers
• 713990 All Other Amusement and Recreation Industries
• 721110 Hotels (except Casino Hotels) and Motels
• 721120 Casino Hotels
• 721191 Bed-and-Breakfast Inns
• 721211 RV (Recreational Vehicle) Parks and Campgrounds
• 721214 Recreational and Vacation Camps (except Campgrounds)
• 722511 Full-Service Restaurants
• 722513 Limited-Service Restaurants
• 722514 Cafeterias, Grill Buffets, and Buffets
• 722515 Snack and Nonalcoholic Beverage Bars
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Hospitality: scope, challenges and opportunities

Hospitality is one of the fastest growing industries in the world today. According to the Ernst & Young report, Global Hospitality Industry Insights 2016, the hospitality industry is going to be the single largest employer globally, contributing 1 among 11 jobs generated. The World Travel & Tourism Council calculated that tourism generated 8.31 lakh crore (US$120 billion) or 6.3 percent of the nation’s GDP in 2015 and supported 37.315 million jobs, 8.7 percent of its total employment. The sector is predicted to grow at an average annual rate of 7.5 percent to 18.36 lakh crore (US$270 billion) by 2025 (7.2 percent of GDP). This makes India one of the fastest growing tourism industries over the next decade.

With the Ministry of Tourism (MoT), Government of India targeting over 12 percent growth rate in inbound as well as domestic tourists, it has beenprojected that the tourism sector will generate additional jobs for about 2.5 crore people,both directly and indirectly, during the period 2010-16 (12thPlan). And this number is going to increase with new hotels and resorts cropping up every year as a result of India creating a big name for itself on the tourism map. It is no wonder then that enterprising youngsters have been lining up for hospitality and hotel management related courses at institutes across the country. And the need for a world-class institute in India has never been stronger. Professional hospitality institutes are churning out well qualified professionals every year. Trained professionals, of course, have an advantage over untrained graduates as hotels would rather not invest in training of new recruits.

The hospitality arena in India is not only growing rapidly, but it has developed into a multi-faceted industry. There has been a rapid growth in the development of Indias airline sector. Indians are travelling more as compared to the past because of better connectivity and ease of flying. There has also been an increase in foreign tourist arrivals. With an advancement in technology, hotel rooms can now be booked with a click of a button. From budget hotels to five star properties and home stays to boutique resorts, there is something for every traveller. There is a growing awareness of international hospitality standards and people are demanding high quality services in hotels and restaurants. Social and digital media also gives them a platform to review offerings and express their dissatisfaction. There are several international brands and chains that have entered the local market. And with competition being high, customers are spoiled for choice.

In terms of human resources, this industry experiences a high turnover of skilled people. Moreover, trained hospitality professionals are absorbed by many multi-national companies including banks and IT firms.

Embarking on a career in hospitality can be hugely rewarding. Being a service based industry; an aspirant needs to possess great people skills and the willingness to work hard in order to build a successful career in the hospitality sector. Being a people intensive sector, the hospitality industry is in constant need of people. However candidates opting for this sector have to go through a rigorous training programme to be able to cope with the exacting standards and its growing demands. One particular institute that offers several short term courses and a degree course in hospitality is the V. M. Salgaocar Institute of International Hospitality Education (VMSIIHE), Raia. The Bachelors of Science in International Hospitality Management is an intensive three year programme designed to equip students with all the necessary technical, operational and management skills required by the international hospitality industry.

Candidates who have passed standard 10 from a recognised board in India or any other country are eligible to apply for the three year degree course at VMSIIHE. The programme includes financial management, event management, an internship, research methods and mock interviews. All the courses offered at VMSIIHE are affiliated to the Goa University and the curriculum is focused on the demands of the industry. The state-of-the-art campus features a training kitchen, restaurant, and an attached training hotel, which ensures students are equipped with the right set of skills demanded by the industry. VMSIIHE places their students in starred hotels in India and abroad.

While the opportunities are ample, students need to evaluate their aptitude for a career in hospitality before jumping right in. Candidate must be willing to work in various areas of operation as the profession may require that an employee be asked to work in management, food and beverage service, housekeeping, front office operation, sales and marketing, accounting or any other department depending upon the specific requirement.

Depending on their areas of interest and training, students can work in the areas of hotel and restaurant management, airline catering and cabin service, club management, cruise ship hotel management, hotel and tourism associations, forest lodges and guest houses, catering institutes and even set up an entrepreneurial venture of their own. With ample opportunities for advancement in this field, students that start careers in cafes, bars and lounges will soon find themselves on the fast track towards managerial levels which include taking up the position of a General Manager, Rooms Division Manager, Food & Beverage Manager, Sales & Marketing Manager, Chef and Restaurant Manager. Hospitality students also have an opportunity to build careers in various other sectors including the banking industry, IT industry, food chains, institutions, hospitals and industries that have their own cafeteria facilities and require hospitality professionals.

The hospitality industry overall provides a diverse range of experiences. It is often considered as one of the most exciting career avenues, but there is a lot of work and effort involved behind the scenes. However, with the positive growth of this industry, students with an inclination towards this career have a bright future ahead.

The author is Professor Irfan S. Mirza, CHE, director and principal, V.M. Salgaocar Institute of International Hospitality Education (VMSIIHE)-Goa.

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Download survey 2022, nature of the hospitality industry.

The hospitality industry is one of most pivotal segments of the service industry, encompassing of myriad category, the Hospitality industry is referred to as companies or organizations which provide the basic human needs like shelter, food, and drinks to the satisfaction of those in need.

In a larger perspective, Hospitality is a customer-to-host relationship-based industry, where the Host is careful as to meet the basic needs of the customer in the most optimum way.

The Hospitality industry is now a multi-billion dollar industry; heavily dependent on available to be used income and leisure time, with a myriad of categories and diversified job openings, not just in the US, but also across other countries. Whether you plan to make a career in the Hospitality industry or just to eke out a small living, you might have help accessing through the best Hospitality jobs portal in the USA .

Scopes of the Hospitality industry

The word “Hospitality” has come to be largely associated with the travel and tourism industry. Howbeit, Hospitality is simply welcoming and seeing to the basic needs of customers in exchange for profits.

The Hospitality industry, no doubt, is one of the fastest growing industries, with complex scopes and diverse job opportunities .

The scopes of Hospitality includes but not limited to: Lodging and accommodation, Foods and drink service, event planning and management, transport and logistics service, travel and tourism, shopping and luxury service, cruise, spas, and wellness service.

Job opportunities offered by the Hospitality industry

The hospitality industry offers numerous job opportunities. The characteristic nature of jobs available within the Hospitality industry can never be easily replaced by technology in years to come. Any premium Hospitality job portal in the USA or any part of the world should have such diverse openings up for its subscribers and visitors alike. These job offerings include

• Accounting Staff
• Administration Staff
• Banquet Manager
• Cocktail Server
• Concierge Desk
• Crew Member
• Customer Service
• Delivery Driver
• Executive Chef
• Front Desk Executive
• Host/Hostess
• Housekeeper
• Restaurant Manager
• Sales & Marketing
• Shift Supervisor
• Valet Attendant
• Waiter /Waitress 

Characteristics of the Hospitality Industry

The hospitality industry is quite different from other sectors and as unique as a service-oriented industry with a strong emphasis on human interaction in service delivery processes.

The various tangible and intangible products offered by the industry have made it a more human service demanding industry; a visit to the top Hospitality job portal will affirm this. The industry commands lots of professionalism in the process of service delivery.

Profound characteristics of the industry are;

• Sustained customer relationship
• Diversity in culture
• Tangible and Intangible service
• Customer to staff communication
• High labor demand

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Key 2024 Hospitality Trends to Look Out For

Ah, the magic of hotels! They’re not just about fluffy towels and comfy beds anymore. They’re vibrant hubs, immersive escapes, and memories that linger long after checkout. The ability of hotels to adapt to emerging trends is instrumental in their sustained success. Today, we explore the pivotal trends that are reshaping the industry, recognizing that while the essence of providing exceptional guest experiences endures, evolution is inevitable.

As we witness a resurgence in travel and hospitality following the challenges of the pandemic, our focus is not only on recovery but also on meeting the evolving expectations of travelers. With increased budgets allocated to travel, guests are once again venturing into the world, prompting the hospitality sector to align with new consumer dynamics and embrace technological innovations for enhanced efficiency.

Table of Contents

Scope of Hospitality Management in the Coming Future

The Hospitality industry is always changing to meet what people want and what’s trendy. Some big trends include a focus on being more eco-friendly and using technology like mobile check-ins and smart recommendations. Personalized experiences are also in demand, where managers use data to make services special for guests.

For those wanting a career in hospitality , it’s important to keep up with these changes and be open to new technology. Learning about things like managing money and understanding data is key to making businesses grow. Even though COVID caused some issues, the travel and hospitality industry is bouncing back. It’s a great field with lots of chances, not only in India but around the world. Hospitality jobs, whether in restaurants, hotels, spas, or even airlines, are on the rise, making it a cool choice for the future.

Key trends in the hospitality industry to look out for in 2024:

1) smart hotel technology:, do you want free career counseling.

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Hotels using smart technology with the Internet of Things (IoT) are making guests pretty excited. It’s not just about making things fancy; it’s changing how guests experience their stay. Imagine having your room set up just the way you like it or getting room service in a super smart way – that’s what this tech does. It’s not just about luxury; it’s about giving guests a smooth and tech-savvy stay, which more and more people are into.

2) Sustainable Hotels:

Hotels going green are part of a bigger move where people care more about the environment. Sustainable hotels are all about being eco-friendly – using materials that are good for the Earth, saving energy, and managing waste smartly. It’s not just about giving a place to stay; these hotels are like Earth’s caretakers, doing their bit to keep things clean and green. It’s a cool choice, especially for travelers who care a lot about the environment.

3) Personalized Guest Assistance:

Hotels are stepping up their game in making your stay super personalized. Thanks to fancy technology, they can now predict what you might need before you even ask. This isn’t just about making things run smoothly behind the scenes; it’s about making you feel special and understood throughout your entire visit. The focus is on giving you an experience that feels tailored to you, changing the game in how hotels cater to what you like, and ensuring you leave happy.

4) Hybrid Meeting Spaces:

Hotels are changing things up to fit the new way we work. Now, they’ve got spaces that work for both real and virtual meetings. These cool spots have all the tech stuff you need, making it easy to switch between in-person and online meetings. It’s like having a flexible space that supports teamwork, whether you’re there in person or joining from somewhere else.

5) Unique Brand Experiences:

Hotels stand out not just because they look different but because they’re creating experiences that guests connect with. It’s about making memories that stick around even after you’ve left. Whether it’s having cool art everywhere or a special vibe in the hotel, these unique things are what people want for a trip that feels personal and unforgettable.

6) Health and Wellness:

Hotels caring about your health and well-being isn’t just a passing trend – it’s a big change in how they do things. They’re offering things like gyms and healthy food to make sure guests have a complete and good-for-you experience. By putting well-being first, hotels create a positive and refreshing atmosphere that makes guests want to come back again and again.

7) Blockchain in Hospitality:

Blockchain technology is changing how hotels work by focusing on keeping things super secure and clear. It gets rid of middlemen, making sure transactions are solid and records are spot-on. It’s not just about saving money; it’s about making sure everyone trusts each other – guests and hotels included. This is a big step forward in how guests and hotels connect.

8) Flexible Booking Options and Dynamic Pricing:

Hotels are making things easy for you with flexible booking and smart pricing. Now, you can customize your stay with flexible check-in and check-out times and cancel plans without a fuss. Smart pricing means the cost changes based on how many people want to stay, giving you budget-friendly choices and helping hotels make the most when it’s super busy. It’s all about making your booking experience hassle-free and giving you options that suit your needs.

9) Influence of Social Media:

Social media doesn’t just help hotels with advertising. Platforms like Instagram and Twitter shape what guests expect and affect the choices they make. Hotels use social media not just to show off what they offer but also to chat with guests, kind of like making a virtual community that adds a social side to the whole travel experience.

10) Experiential Travel:

Experiential travel isn’t just about having a place to crash; it’s about telling a story for guests. Hotels into this trend plan cool experiences that get guests into local cultures. It could be putting on cultural events, food tours, or art shows – basically, these hotels are making stays into unforgettable adventures, perfect for travelers who want meaningful and real experiences.

success comes from blending comfort with amazing experiences. As the hospitality industry bounces back after the pandemic, the main focus is on meeting what travelers want now and using new technology. Whether it’s adding AI or being more eco-friendly, each trend is about making guests happier and running things more smoothly. Finding the right mix between tech and that personal touch is super important. Trends are like bright ideas showing new ways to do things. The AAFT School of Hospitality & Tourism Management is like a guide, offering courses that teach not just business skills but also the super important customer service skills you need in this competitive field. The heart of hospitality is all about creating special stories and building strong connections.

How can I keep up with the latest trends while studying hospitality?

Stay in the loop by reading about new things in the hospitality world, talking to people in the industry, and joining workshops. Pick courses that cover these cool trends so that when you finish studying, you’re all set with the skills the hotels are looking for.

How does enrolling in courses that cover industry trends benefit aspiring hospitality professionals?

Enrolling in such courses is essential as it provides aspiring professionals with up-to-date knowledge and skills. This not only enhances their competitiveness in the job market but also prepares them to meet the ever-changing demands of the industry.

What skills do I need to succeed in hospitality?

To do well in hospitality, you’ll want to be good at talking to people, working well with others, handling changes easily, solving problems, and making sure the guests are always happy. These skills are super important for giving guests great experiences and dealing with the always-changing world of hospitality.

How can students strike a balance between leveraging technology and preserving personal interactions in the hospitality sector?

Students can achieve this balance by recognizing the ways technology improves efficiency and guest experiences. Simultaneously, they should value and prioritize genuine personal interactions. Strong communication skills play a crucial role in maintaining a human touch in the dynamic field of hospitality.

AAFT has been providing the world with limitless creativity and expression since 1993! Through a dynamic and industry-driven curriculum, AAFT provides engaging and captivating articles to persuasive blogs and empowers its readers to explore diverse avenues of creative media education-related content.

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Travel, Tourism & Hospitality

Global tourism industry - statistics & facts

What are the leading global tourism destinations, digitalization of the global tourism industry, how important is sustainable tourism, key insights.

Detailed statistics

Total contribution of travel and tourism to GDP worldwide 2019-2034

Number of international tourist arrivals worldwide 1950-2023

Global leisure travel spend 2019-2022

Editor’s Picks Current statistics on this topic

Leading global travel markets by travel and tourism contribution to GDP 2019-2022

Travel and tourism employment worldwide 2019-2034

Further recommended statistics

• Basic Statistic Total contribution of travel and tourism to GDP worldwide 2019-2034
• Basic Statistic Travel and tourism: share of global GDP 2019-2034
• Basic Statistic Leading global travel markets by travel and tourism contribution to GDP 2019-2022
• Basic Statistic Global leisure travel spend 2019-2022
• Premium Statistic Global business travel spending 2001-2022
• Premium Statistic Number of international tourist arrivals worldwide 1950-2023
• Basic Statistic Number of international tourist arrivals worldwide 2005-2023, by region
• Basic Statistic Travel and tourism employment worldwide 2019-2034

Total contribution of travel and tourism to gross domestic product (GDP) worldwide in 2019 and 2023, with a forecast for 2024 and 2034 (in trillion U.S. dollars)

Travel and tourism: share of global GDP 2019-2034

Share of travel and tourism's total contribution to GDP worldwide in 2019 and 2023, with a forecast for 2024 and 2034

Total contribution of travel and tourism to GDP in leading travel markets worldwide in 2019 and 2022 (in billion U.S. dollars)

Leisure tourism spending worldwide from 2019 to 2022 (in billion U.S. dollars)

Global business travel spending 2001-2022

Expenditure of business tourists worldwide from 2001 to 2022 (in billion U.S. dollars)

Number of international tourist arrivals worldwide from 1950 to 2023 (in millions)

Number of international tourist arrivals worldwide 2005-2023, by region

Number of international tourist arrivals worldwide from 2005 to 2023, by region (in millions)

Number of travel and tourism jobs worldwide from 2019 to 2023, with a forecast for 2024 and 2034 (in millions)

• Premium Statistic Global hotel and resort industry market size worldwide 2022-2023
• Premium Statistic Most valuable hotel brands worldwide 2023, by brand value
• Basic Statistic Leading hotel companies worldwide 2023, by number of properties
• Premium Statistic Number of hotels in the construction pipeline worldwide 2024
• Premium Statistic Number of hotel rooms in the construction pipeline worldwide 2024
• Premium Statistic Countries with the most hotel construction projects in the pipeline worldwide 2024

Global hotel and resort industry market size worldwide 2022-2023

Market size of the hotel and resort industry worldwide in 2022 and 2023 (in trillion U.S. dollars)

Most valuable hotel brands worldwide 2023, by brand value

Leading hotel brands based on brand value worldwide in 2023 (in billion U.S. dollars)

Leading hotel companies worldwide 2023, by number of properties

Leading hotel companies worldwide as of June 2023, by number of properties

Number of hotels in the construction pipeline worldwide 2024

Number of hotels in the construction pipeline worldwide as of the first quarter of 2024

Number of hotel rooms in the construction pipeline worldwide 2024

Number of hotel rooms in the construction pipeline worldwide as of the first quarter of 2024

Countries with the most hotel construction projects in the pipeline worldwide 2024

Countries with the highest number of hotel construction projects in the pipeline worldwide as of the first quarter of 2024

• Premium Statistic Airports with the most international air passenger traffic worldwide 2022
• Premium Statistic Market value of selected airlines worldwide 2023
• Premium Statistic Global passenger rail users forecast 2017-2028
• Premium Statistic Daily ridership of bus rapid transit systems worldwide by region 2023
• Premium Statistic Number of users of car rentals worldwide 2019-2028
• Premium Statistic Number of users in selected countries in the Car Rentals market in 2023
• Premium Statistic Carbon footprint of international tourism transport worldwide 2005-2030, by type

Airports with the most international air passenger traffic worldwide 2022

Leading airports for international air passenger traffic in 2022 (in million international passengers)

Market value of selected airlines worldwide 2023

Market value of selected airlines worldwide as of May 2023 (in billion U.S. dollars)

Global passenger rail users forecast 2017-2028

Worldwide number of passenger rail users from 2017 to 2023, with a forecast through 2028 (in billion users)

Daily ridership of bus rapid transit systems worldwide by region 2023

Number of daily passengers using bus rapid transit (BRT) systems as of April 2023, by region

Number of users of car rentals worldwide 2019-2028

Number of users of car rentals worldwide from 2019 to 2028 (in millions)

Number of users in selected countries in the Car Rentals market in 2023

Number of users in selected countries in the Car Rentals market in 2023 (in million)

Carbon footprint of international tourism transport worldwide 2005-2030, by type

Transport-related emissions from international tourist arrivals worldwide in 2005 and 2016, with a forecast for 2030, by mode of transport (in million metric tons of carbon dioxide)

Attractions

• Premium Statistic Leading museums by highest attendance worldwide 2019-2022
• Basic Statistic Most visited amusement and theme parks worldwide 2019-2022
• Basic Statistic Monuments on the UNESCO world heritage list 2023, by type
• Basic Statistic Selected countries with the most Michelin-starred restaurants worldwide 2023

Leading museums by highest attendance worldwide 2019-2022

Most visited museums worldwide from 2019 to 2022 (in millions)

Most visited amusement and theme parks worldwide 2019-2022

Leading amusement and theme parks worldwide from 2019 to 2022, by attendance (in millions)

Monuments on the UNESCO world heritage list 2023, by type

Number of monuments on the UNESCO world heritage list as of September 2023, by type

Selected countries with the most Michelin-starred restaurants worldwide 2023

Number of Michelin-starred restaurants in selected countries and territories worldwide as of July 2023

Online travel market

• Premium Statistic Online travel market size worldwide 2017-2028
• Premium Statistic Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023
• Premium Statistic Number of aggregated downloads of leading online travel agency apps worldwide 2023
• Basic Statistic Market cap of leading online travel companies worldwide 2023
• Premium Statistic Estimated EV/Revenue ratio in the online travel market 2024, by segment
• Premium Statistic Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Online travel market size worldwide 2017-2028

Online travel market size worldwide from 2017 to 2023, with a forecast until 2028 (in billion U.S. dollars)

Estimated desktop vs. mobile revenue of leading OTAs worldwide 2023

Estimated desktop vs. mobile revenue of leading online travel agencies (OTAs) worldwide in 2023 (in billion U.S. dollars)

Number of aggregated downloads of leading online travel agency apps worldwide 2023

Number of aggregated downloads of selected leading online travel agency apps worldwide in 2023 (in millions)

Market cap of leading online travel companies worldwide 2023

Market cap of leading online travel companies worldwide as of September 2023 (in million U.S. dollars)

Estimated EV/Revenue ratio in the online travel market 2024, by segment

Estimated enterprise value to revenue (EV/Revenue) ratio in the online travel market worldwide as of April 2024, by segment

Estimated EV/EBITDA ratio in the online travel market 2024, by segment

Estimated enterprise value to EBITDA (EV/EBITDA) ratio in the online travel market worldwide as of April 2024, by segment

Selected trends

• Premium Statistic Global travelers who believe in the importance of green travel 2023
• Premium Statistic Sustainable initiatives travelers would adopt worldwide 2022, by region
• Premium Statistic Airbnb revenue worldwide 2017-2023
• Premium Statistic Airbnb nights and experiences booked worldwide 2017-2023
• Premium Statistic Technologies global hotels plan to implement in the next three years 2022
• Premium Statistic Hotel technologies global consumers think would improve their future stay 2022

Global travelers who believe in the importance of green travel 2023

Share of travelers that believe sustainable travel is important worldwide in 2023

Sustainable initiatives travelers would adopt worldwide 2022, by region

Main sustainable initiatives travelers are willing to adopt worldwide in 2022, by region

Airbnb revenue worldwide 2017-2023

Revenue of Airbnb worldwide from 2017 to 2023 (in billion U.S. dollars)

Airbnb nights and experiences booked worldwide 2017-2023

Nights and experiences booked with Airbnb from 2017 to 2023 (in millions)

Technologies global hotels plan to implement in the next three years 2022

Technologies hotels are most likely to implement in the next three years worldwide as of 2022

Hotel technologies global consumers think would improve their future stay 2022

Must-have hotel technologies to create a more amazing stay in the future among travelers worldwide as of 2022

• Premium Statistic Travel and tourism revenue worldwide 2019-2028, by segment
• Premium Statistic Distribution of sales channels in the travel and tourism market worldwide 2018-2028
• Premium Statistic Inbound tourism visitor growth worldwide 2020-2025, by region
• Premium Statistic Outbound tourism visitor growth worldwide 2020-2025, by region

Travel and tourism revenue worldwide 2019-2028, by segment

Revenue of the global travel and tourism market from 2019 to 2028, by segment (in billion U.S. dollars)

Distribution of sales channels in the travel and tourism market worldwide 2018-2028

Revenue share of sales channels of the travel and tourism market worldwide from 2018 to 2028

Inbound tourism visitor growth worldwide 2020-2025, by region

Inbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

Outbound tourism visitor growth worldwide 2020-2025, by region

Outbound tourism visitor growth worldwide from 2020 to 2022, with a forecast until 2025, by region

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Do Country Risks Matter for Tourism efficiency? Evidence from Mediterranean countries

• Published: 24 June 2024

Cite this article

• Manel Frifita   ORCID: orcid.org/0000-0002-2528-9977 1 &
• Zouhair Hadhek 2  

This research fills the gap in the existing literature on tourism by examining the impacts of country stability (economic, financial and political) on tourism efficiency (cost and profit). To consider the potential nonlinear relationships among the variables, we employ a new method of moment quantile regression, analyzing panel data from 17 countries between 2000 and 2020. The findings of the study reveal that higher country stability generally leads to higher tourism efficiency. The results suggest that the influence of country risk ratings on tourism efficiency is mainly nonlinear across different tourism efficiency quantiles. Moreover, the various components of risk rating scores have differing effects on tourism efficiency. These insights emphasize the imperative for policymakers to devise nuanced strategies that harness the synergies between stability factors and tourism efficiency for sustainable economic growth. This implies that policymakers should take into account the cost and profit efficiency of their tourism industry when setting country stability strategies.

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Data Availability

Data are available from the authors upon request.

This transformation is common in the literature, so that the total profit is ln(1) = 0 for the country with negative (lowest) profit and positive for all other countries. Adding a constant to the entire series does not change the results.

A symmetric matrix.

The dependent variable of the cost function (Model A).

The dependent variable of the profit function (model B).

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Hospitality Trends: A glimpse into the future of the industry

August 16, 2023 •

10 min reading

Step into the future of hospitality as we uncover the captivating realm of short- and long-term perspectives that are reshaping the industry. Let’s explore how technology is helping hospitality firms create an unparalleled guest experience and learn about the futuristic ideas that spark the imagination and are setting the stage for our extraordinary tomorrow.

---- HOSPITALITY INSIGHTS ----

This month, we have decided to share with you some industry trends. In the short-term perspective section, we have selected the ones you can expect to see in the next 2-3 years, while in the long-term chapter we highlight trends that will take longer to be implemented.

Short-term perspective

Development of a more inclusive and responsible travel mindset.

In recent years, the concept of responsible travel has gained significant attention and importance in the world of tourism. More and more travelers are committed to making their trips more environmentally and socially responsible. In a similar vein, inclusive travel is becoming essential for customers. In the U.K., two-thirds of customers think an equity, diversity, and inclusion (EDI) policy is important for companies in the hospitality and tourism industry. For UKHospitality Chief Executive Kate Nicholls, this is not surprising as: “Hospitality has always been a people-first business and has a tradition of being one of the most inclusive sectors in the world.” Both these trends are having a significant impact on the hospitality industry.

How new technologies could facilitate the customer experience

For a long time, flying cars have been seen as a pipe dream at best or a whimsical folly at worst. Remember the Jetsons? Yet, it seems like it may become a reality in the not-too-distant future. Soon, we may be able to hail a flying cab in some cities to go to the train station or to visit a museum! When it comes to facilitating tourists’ journey, Biometric identification , such as fingerprint, facial recognition, and iris scans, is gaining in popularity at airports worldwide, including in Europe. This technology offers faster and more accurate passenger screening, reducing processing time for procedures like baggage check-in. Airports like Dubai International, Hong Kong International, Tokyo Narita, and London Heathrow already utilize facial recognition technology, while the European Union plans to implement an automated entry-exit system using fingerprints and facial images by 2024. Airlines like Emirates and major U.S. carriers have also been incorporating biometric identification for streamlined travel experiences.

The greening of the industry: Embracing sustainable practices

Vegan food is becoming more and more trendy. While, for some, this trend could threaten the savoir-faire of gourmet cooking (e.g., the art of preparing meat), more and more chefs are starting to develop innovative ways to cook vegetables. In the process, they are developing new complex techniques and new know-how. As summarized by Ixta Belfrage , a U.K.-based cookbook author “Plant forward is the way forward” and she recommends making “plants the star of the dish to eat less animal products”. The democratization of vegan food underlines the sustainability turn undertaken by the hospitality and tourism industry. One fine example of this is also the Global sustainability challenge , which invites students from Hospitality Business Schools all around the world to find innovative and sustainable solutions. This year, the focus was on being “one with nature” and encouraging students to imagine regenerative hospitality concepts.

Long-term horizon

The rise of futuristic-like transportation and traveling means.

Hyperloop trains are seen as sustainable solution for inter-city travel. Even though the technology is not there yet, it is increasingly likely that they will become part of our transportation systems in the long run. Indeed, companies such as Virgin Hyperloop or Elon Musk’s own The Boring Company are working on developing and testing hyperloop technology. Space tourism is becoming a reality for affluent explorers, with various companies offering expeditions beyond Earth's boundaries, such as Blue Origin's trips to outer space and SpaceX's plans for civilian missions around the moon. Yet one should not expect space travel to become the norm anytime soon but, eventually, it is expected to become more accessible and popular on a small scale. One can question the sustainable impact this new kind of travel will have though...

Net-zero target: the ultimate goal for the hospitality industry

Regarding sustainability, one shipbuilder has amassed a dizzying array of technology as it aims to launch its first zero greenhouse gas emissions boat by 2030. The future of travel is inevitably linked to climate change. As a result, actors in the hospitality industry, such as the International Civil Aviation Organization (ICAO), have committed to being net zero by 2050. Indeed, a mix of technologies , ranging from sustainable aviation fuel to hydrogen-powered engines to all-electric planes in the next decade, should help the industry to reach its carbon neutral goal. However, some have expressed considerable doubts regarding the ability of the airline industry to reach this ambitious target.

---- HOSPITALITY INNOVATION ----

Recent stories in the news have pointed to the sustained emergence of several innovations that are likely to stay with us well beyond tomorrow. From seamless technology to futuristic experiences with ubiquitous sustainability, these pervasive innovations are changing the landscape of the hospitality industry, setting new standards forguest services.

Seamless and smooth technologies to easy daily tasks

While we all expect tools like ChatGPT to impact the promotion of tourism, the future of innovation goes beyond AI alone. The future internet will revolutionize travel by offering virtual reality experiences, enhancing real-world travel, and incorporating Web3 technologies. Blockchain and smart contracts can be utilized for booking platforms, eliminating intermediaries, while NFTs can be used to create digital passports as tokens on the decentralized web.

The use of digital wallets and contactless payment systems for mobile ticketing in public transport and tourist attractions means you won’t have to fumble for change when boarding a bus in New Delhi or Sydney or Sao Paolo. In addition, the abundance of data generated through these innovative solutions can also enrich the tourism sector. By analyzing spending patterns and preferences, businesses can tailor their offerings and create personalized marketing and promotion strategies that cater to individual needs and interests.

There have been notable changes in the ways we traditionally handle certain aspects of travel. For instance, managing and safeguarding our luggage used to be our responsibility. However, to address this issue, Accor , a global hospitality leader, is partnering with startup Alltheway to provide a seamless and stress-free travel experience by offering baggage transportation between city centers and airports. This collaboration is set to expand internationally by late 2024.

An all-in-one hospitality solution has garnered attention from such giants as Apple who recently filed a patent for “systems and methods for accessing hotel services using a portable electronic device”. This suggests that Apple could be planning to develop a hotel application that consolidates all guest interactions, including booking a room, check-in, ordering services, and more, into one place.

In general, all guest interactions are important, and the main innovations are expected in six key moments : booking, check-in, service, food and beverage, check-out, and post-experience. For instance, consumers expect the entire booking process to be user-friendly and streamlined, providing them with all the information they need in a single view. Companies must also adopt a mobile-first approach, as an increasing number of travelers now prefer to book reservations on their smartphones or mobile devices. If the content provided is insufficient, or disorganized or the responses are slow, consumers get frustrated fast and will seek alternatives elsewhere.

Another intriguing signal in hospitality points to the future being centered around user disengagement . This approach prioritizes the integration of unobtrusive background technology that enhances human-to-human interaction. In simpler terms, the technology should operate silently, freeing people from screens and other processes that do not add value to their experience. By making the technology invisible yet reliable, hotel staff can spend less time looking at screens when a guest stands right in front of them, allowing them to focus more on personal interactions. Nobody goes to a hotel to suffer through these administrative moments or “engage” with a phone to order something. We need to embrace technology that seamlessly works in the background, enabling maximum human engagement when needed. The rise of interest in devices that bring us back to real life further confirms this signal. For instance, the “Nothing phone” , which leverages the Glyph interface to help users focus more on the world around them rather than their phones, recently announced its second edition, underscoring the growing demand for technology that promotes well-being, mindfulness, and real-life experiences.

Futuristic cues in the hospitality industry

The most futuristic innovations appear to be emerging in the food industry. According to the report dedicated to the 10th anniversary of Deliveroo , we can anticipate a much more personal touch in our diets. For instance, the integration of BreathTech can allow us to breathe into a device and receive personal recommendations on the optimal food to consume for our health. AI will aid in creating diets that are fully aligned with our individual nutrition needs. Furthermore, 3D printing technologies will create printed lunches for us, making food preparation much more convenient. Additionally, through the use of VR/AR and smart glasses, we can trick our brains and senses into thinking that we’re eating chocolate when, in fact, it may be broccoli. These innovations are reshaping our very perception of what food is and isn’t. While dining remains one of the tangible things we want to experience and share with others, the surge in take-away concepts in recent decades may pave the way for 3D food printers , which could become omnipresent by 2073.

Furthermore, there is a growing expectation for more sustainable solutions in the food sector, as traditionally unhealthy ingredients can now be substituted with novel products. For instance, one startup foresees exponential growth in the personalized nutrition segment and is actively developing plant-based products and other ingredient innovations for diverse applications. These advancements aim to create healthier meals and contribute to a more sustainable ecosystem. We also anticipate a transition in the entire value creation process, shifting towards sustainability and upholding the principles of a circular economy.

At the city level, positive dynamics are expected as well. Dubai, renowned as the “City of the Future” , is committed to being even more futuristic and further advancing its tourism industry by embracing greater levels of inclusivity, sustainability, and technological development. As an example of their dedication, all hotels in Dubai are mandated to adhere to the country’s sustainability standards.

Forward-thinking players in the hospitality industry are eager to embrace the Metaverse and experiment with blending the real and virtual worlds to create unforgettable personalized experiences. This includes innovative concepts such as a futuristic virtual check-in, virtual art installations in hotel lobbies, or hosting virtual concerts, all aimed at pushing the boundaries of traditional hospitality.

Decentraland, a virtual world powered by blockchain technology, is emerging as a vibrant hub for hotels and restaurants looking to explore new frontiers. One example of this is LEVENverse, which envisions a fun and immersive virtual hotel environment by LEVEN, challenging the conventional hotel archetype and offering a captivating experience for guests. These pioneering efforts are just a glimpse of the possibilities that come with the convergence of technologies and imagination. For instance, in a groundbreaking move, Indonesia became the first country to use Web3 and NFTs to protect its cultural heritage and revitalize its tourism industry. By embracing current and new technologies, we are ready to explore the transformative potential of immersive and interactive digital experiences.

---- HOSPITALITY INSPIRATION----

Read, watch and listen.

• Learn more about the proteins of the future with "Fungi bacon and insect burgers: a guide to the Proteins of the future"
• Read how travel can become more inclusive with "The Future of queer travel"
• Looking to create new menus for your restaurants? Gain some innovative insights with the Future menu trends report 2023
• Have a look at Masdar City and its innovative transportation system
• Widen your knowledge about The future of food and nutrition by listening to Professor Johannes le Coutre
• Discover insights from renowned hotelier Liz Lambert about creating unique guest experiences in the travel landscape and what the future holds for us in hospitality

Research Assistant & Visiting Lecturer at EHL Hospitality Business School

Research Associate at EHL Hospitality Business School

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