MKT01762 Contemporary Issues of Hotel and Tourism Industry

MKT01762 Contemporary Issues of Hotel and Tourism Industry

MKT01762 Contemporary Issues of Hotel and Tourism Industry


The report is based on the global contemporary issues of the hotel and the tourism industry. The contemporary issues mainly the tourism industry face are the terrorism, cost of travel and the epidemics and pandemics. These are some of the factors which are affecting the travel and tourism industry and people are facing to travel the world. The tourism has become one of the important sectors for all the countries and they have placed special focus on this industry in order to make it a big source of revenue for foreign exchange. But at the same time, some issues affect the tourism and hotel industry. The report will be discussing this in detail.

Contemporary Issues of Hotel and Tourism Industry

Contemporary issues

Tourism development has nowadays become one of the major sources of revenue and for earnings foreign capital in a nation.  And hotel industry is directly related to it as tourist whether being domestic or international, needs accommodation for its travelling, thereby it is very important for hotel industries to understand the needs and preferences of the customers and for providing best of its services to its customers/ visitors in order to satisfy and retain their customers.

The travel and tourism industry now a day facing the challenge of grabbing the customers because of the global issues that have taken the attention of the visitors majorly and make them think more about to travel. While researching about the factors some of the global contemporary issues which have emerged as the most affecting factors of the travel and tourism or the hotel industry are terrorism, cost of travelling and the epidemics and the pandemics which are spreading its effect in the whole world in a huge amount. Here is the description of such issues-


Terrorism is fear of worst and the dangerous activities which are violent and in an unauthorized and unofficial manner. The terrorism is the activity the terrorist do with the intention to damage the property of the country as well as to harm the majority of people. The terrorist may not affect the tourism for a long period but it affects the perception or the opinion of the people in a manner that they avoid the travelling and visiting the place. The tourism and the hotel industries are mostly targeted by the terrorist to attack as they bring the majority of people together and they can harm many people at a time (Hall,, 2011). There are various cases where tourism and the hotel industry were affected majorly and which took the industry many years to recover from that the attack as well as in building the trust of being safe and secured among the tourist. For the e.g. attack of 26/11 in Taj hotel, Mumbai. It harmed many people and the huge loss to the hotel as well as the tourism was affected.

For tourism sector, it is important to secure and de safety to the tourist and to ensure the maximum security to the people. As this is the situation which can happen to the industry any time without knowledge but these situations can be avoided at least to some extent.

Cost of Travelling

The other factor or the issue which the tourism and the hotel industry face is the cost of travelling and the hotel as well. Today the competition in every sector has increased the cost and the expectation of the people related to tourism, travel and hotel industry has increased. The customers or the tourist search the best quality and the maximum customer satisfaction as the result the services get costly. The cost of these sectors also effects from the competition. The level of services the customers provide becomes the standard. The globalization has affected the cost of the travelling and tourism as the result of which the high-cost services are not affordable to every income level tourists. The cost of the tourism and the hotel industry affects the opinion of the tourists and brings out the less travelling (Sandvik,, 2011). The research was the result of the observation that the families came down to one holiday trip in a year from the 2 trips in a year. The cost and the prices of the travelling and the hotel industry majorly affect the people with not much income as this becomes unaffordable to bear such travelling expense for them. This is the current and major contemporary issue in the tourism and the hotel industry. The major issues are with the international tourism. The cost of travelling is not only the major issue but cost of visiting as well as the cost of hotel services also affects the tourism industry. The tourism expenses are based on the pocket of the tourists. The cost and the prices should be cut down so as to attract more tourists for visiting and enrich the tourism sector. Tourism is largely dependent on the hotel industry for its survival and growth. But when customers/ travellers remain unsatisfied with the services provided by the hotel industry it places an adverse impact over the tourism industry and ultimately affects the economy and revenue of the country (Aragon-Correa,, 2015). Attracting customers is not enough but retaining them is more important for any hospitality sector as if customers are happy they will surely come back to the same destination for their next vacation and will also do word of mouth marketing for the destination. The cost and the prices of the tourism sector should also be considered in managing and improving the tourism in the industry.

Epidemics and Pandemics

The tourism sector or the hotel industry has also got affected by the diseases that are affecting the world. The different countries or areas are affected by different diseases. The names of this kind of effect that the tourism sector and the hotel industry face are the Epidemics and Pandemics which are observed increasing to the world. The tourist in search of relaxation and to spend the quality time visit to different parts of the world but these diseases or some kind of unhealthy environment reduces the willingness of the tourists to travel.

It has observed that the Pandemics infect more people than the Epidemic.  Some of the pandemics are HIV aids, plague, Black Death, swine flu, dengue etc are the various diseases which affect the t parts of the world and tourism and hotel industry also. These dangerous diseases decrease the trend line of the visits and the tourism patterns and affect the tourism industry in a worst manner (Ryan,, 2010). These diseases arise in the different seasons which affect the business of the tourism sector in all the seasons. The swine flu rises in the summers when the peak travelling season starts which affects the business of the tourism and the hotel industry and decrease the travelling of the tourists majorly in these seasons. If the disease produces the infection to a lot of people then that disease will be known as an epidemic. Different viruses and the environment and even some dangerous flies affect such diseases. The people avoid travelling to such places as they have a fear of being infected. Many trips become cancelled trips due to these spreading infections and people lose the willingness to travel such places. This result in loss of money and the business of the travel and tourism sector gets an immense decrement (Evans,, 2012).

Tourism and hospitality sector has the major contemporary issues which they are facing recently in attracting customers or the travellers. The above-discussed factors or the issues are the majorly faced challenges by the tourism and hotel industry but there are more issues which make them ran out of tourists these are the economic conditions of the country, the unbalanced situation and instability of the country, the natural disasters, the technical effect and the emergency situations such as the currency notes changed in India are some of the reason which affects the tourism industry and tourists and travellers (Ioannides, 2012).


By the above report, we can conclude that the travel and tourism sector and the hotel industry are facing the immense worst situations as the challenges which they are facing in attracting the customers and the tourists are big and tough enough. The major factors discussed in the report are related to the terrorism, cost of travelling and the diseases that affect the tourism. The conclusion is that these factors and many other factors are affecting the tourism and the travelling industry. The countries should take some measures to improve the conditions of the travelling and tourism sector as well as in making the hotel industry a safe and secure place to visit. The fear of terrorism can be reduced by providing the security to the travellers, the cost of the travelling can be reduced by removing the imposed taxes and the services taxes on the services so as to make the services more affordable. The diseases can be cured by providing hygiene and safe environment and the proper medication to the tourists and visitors so as protect them.


Aragon-Correa, J.A., Martin-Tapia, I. & de la Torre-Ruiz, J. 2015, "Sustainability issues and hospitality and tourism firms’ strategies: Analytical review and future directions", International Journal of Contemporary Hospitality Management, vol. 27, no. 3, pp. 498-522.

Evans, N., Stonehouse, G. & Campbell, D. 2012;2003;2002;, Strategic Management for Travel and Tourism, Taylor and Francis, Jordan Hill.

Hall, D.R. 2011, "Tourism development in contemporary Central and Eastern Europe: Challenges for the industry and key issues for researchers", HUMAN GEOGRAPHIES – Journal of Studies and Research in Human Geography, vol. 5, no. 2, pp. 5-12.

Ioannides, D., Professor 2012, New Directions in Tourism Analysis: Tourism and Borders: Contemporary Issues, Policies and International Research, Ashgate Publishing Ltd.

Ryan, C., Huimin, G. & Chon, K. 2010, "Tourism to polluted lakes: issues for tourists and the industry. An empirical analysis of four Chinese lakes", Journal of Sustainable Tourism, vol. 18, no. 5, pp. 595-614.

Sandvik, I.L., Arnett, D.B. & Sandvik, K. 2011;2010;, "The Effects of New Product Development Proficiency on Product Advantage and Tourism Business Performance: Evidence from the Norwegian Hotel Industry", Journal of Travel Research, vol. 50, no. 6, pp. 641-653.