Analysing the Hospitality Industry

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- PROBLEMS THAT PRESENT A CHALLENGE OR OPPORTUNITY.

- Political Instability.

With the election dates fast approaching, political temperatures are rising too in the country. A lot of travellers and even employees are fearing for a repeat of the 2007/2008 post-election violence. Employees are finding employment elsewhere and leaving their jobs while travellers, both business and leisure, are opting to feed their needs in other countries. This makes the hotels in the country to lose a lot of revenue and hence experience losses.

- National Concern on Safety and Security.

Over the past 6-7 years, constant attacks from terror groups such as the Al-Shabaab has sent a bad word about our country’s security. Travel advisories issued by countries like the United Kingdom, Germany and others has reduced the number of travellers visiting the country. Even though security has been tightened, travel advisories and bans lifted, travellers are still with the fear of being attacked at any time. This makes them not visit our country and hence the hotels suffer losses.

- Rise in Operating Costs.

The world market changes every often. So the hotel industry, specifically in Kenya, is expected to change. For example, introduction of technology into the day to day activities of a hotel. This in turn increases the hotel’s operating cost. An operating cost is basically the money needed by an establishment for the day to day running. It is affected by issues such as inflation, high cost of living, government policies and many more. The hotels have to adjust every time the operating costs change. If it happens all of a sudden, the hotel’s efficiency and productivity is affected.

- Evolving Customer Expectations.

Customers in the world and especially in Kenya are becoming more acquainted with the type of product the hospitality industry is selling them. Their expectations are growing daily and they want to get the maximum level of service for what they are paying for. Since there are competitors, a hotel would want to meet or surpass these expectations so as to keep the customer. It’s getting harder for local hotels to meet these expectations since new ones are coming up each passing day.

- Cost of Branding

With the number of hotels in the country rapidly increasing, the existing hotels are widely advised to rebrand. This is when they make their business even more unique and appealing to a customer. This process is quite costly to an establishment in several ways: name and logo development, core brand presentations i.e. websites, advertising, social media awareness. All these activities will force the hotel to spend more. Especially for those upcoming hotels that are still struggling to build their brand.

- High Renovation Costs

Something that worked 10 or 20 years ago, is not expected to appeal to a guest’s eye. Thus hotels are forced to renovate every so often so as to maintain that fresh new feel. Renovation can be defined as the processing of remodelling or improving an outdated structure. This is becoming an even more expensive cost since technological and structural advances the hotels have to keep up with are becoming more and more expensive.

- HOW THESE STAFF ISSUES AND PROBLEMS REFLECT TO THE SITUATION INTERNATIONALLY.

- Insecurity is becoming a global problem because of majorly terrorism and political instability. For example boko haram in Nigeria, ISIS in the Middle East, Civil War in South Sudan and Somalia and many more.

- Operating costs for hotels are increasing because of inflation in most countries. Some countries however, have a good economy hence operating costs for hotels are reducing. For example, China, Sweden and Australia.

- Many hotels worldwide are being forced to rebrand or merge together under one umbrella. For example the InterContinental Hotel Groups (IHG). This is important for mostly marketing.

- Hotels worldwide strife to provide a good working condition for its employees, a good term of contract and this will go ahead in reducing employee turnover and even help them retain experienced customers.

- Employees in other hotels in the world are assured of not losing their jobs thus motivating the employee to working well and increasing efficiency and productivity.

- WHAT OUR LOCAL HOSPITALITY INDUSTRY COULD DO TO IMPROVE THE SITUATION.

Our local hospitality industry can do the following:

- Improve hotel security by frisking those that get in the hotel, increase CCTV surveillance, upgrade the locks to guest rooms, formulate a clear evacuation plan in case of emergency, increase security rounds in the hotel, restrict after duty access to employees, establish a clear background check for both employees and guest. All these are aimed at making a guest feel safe and secure.

- Treat employees equally, organize team building activities for the employees, and hold regular meetings with employees to hear their problems, try to solve employee grievances as soon as possible, appreciate an employee’s work, reward the employees for good work done. All these are aimed to motivate an employee and prevents division.

- Listen to customer opinions and try to incorporate them where possible, increase efficiency and productivity, improve your customer service, and present your product to exceed the customer’s expectations. All these will counter the evolving customer expectations.

- Review salaries at specific times i.e. after every two years, so as to reduce conflict with employees over remuneration.

REFERENCES

International Labour Organization, SAP: Developments and Challenges in the Hospitality Industry Conference, held in Geneva on 23rd -24th November 2010.

Paul R. Dittmer- The Dimensions of the Hospitality Industry; 1993, Van Nostrand.

Powers T. and Barrows C. W – Introduction to Management in the Hospitality Industry (John Wiley & Sons, 2005).

Dieter Franke, General Manager; the InterContinental Hotel, Nairobi.

Ms. Omita Roselyn, the Executive Housekeeper; the InterContinental Hotel, Nairobi.

www.africa-travel.yoexpert.com/kenya/what-are-the-challenges-facing-the-tourist-industry.