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Tourism Management Assignment: Critical Analysis On Hospitality Industry


Task: Write a tourism management assignment on tourism and hospitality industry. The following areas should be evaluated in detail supported by examples quoted from the selected organizations:

Analysis of the hospitality industry:
The history, characteristics and importance of the hospitality industry.
The features of businesses within the industry.
Characteristics of the hotel grading system.
The internal and external features that affect the success of a hospitality business.

Analysis of the tourism industry:
The history, characteristics and importance of the tourism industry.
Patterns of demand and tourism indicators.
The drivers behind the growth of emerging forms of tourism.
The importance of transport, accommodation, attractions and events.
Definitions of ‘tourist’ and ‘tourism’.
Purpose and responsibilities of tour operators, travel agents and tour guides.

Students should demonstrate the application of theory and knowledge to their chosen organisations and ensure they have addressed the assessment criteria outlined in the mark sheet. The analysis should be concluded with detailed and well-justified recommendations; relevant examples can also be used.


In the present condition or business atmosphere, vast amounts of investments are coming into the hospitality and tourism sector around the globe. With higher impact and the requirement of hospitality worldwide, this is one of the industries getting more innovative and more significant over time. Herein tourism management assignment, the research will describe all the facts and forms attached to the hospitality and tourism sector around the globe. While doing the investigation, the critical points like identifying the compelling features of the hospitality and tourism sector and the practical processes of identifying the industry will be described and evaluated. The research will go on and focus on one of the biggest global hospitality brands, Airbnb. With having business in more than 190 countries, the organisation can be stated as one of the biggest ones present in the industry. With time the organisation or the hospitality organisation is willing to expand its business around the globe. Even all the responsibilities needed to be accomplished by the industry or the sector will also be demonstrated with a higher impact. All the configurations will be generated and shown for more excellent fact evaluation, and developing a higher amount of candidature of the industry will be influential.

Overview of the hospitality industry
Another critical fact of finding a path is the requirements of the hospitality industry. According to the analysis and some effective research, it is found that Greeks are the ones who have introduced this sector in front of others and made it public. According to the findings, it is estimated that the hospitality industry started working in the 40th BC. The industry has gone bigger and broader (Yang, Henthorne, and George, 2020). The first evaluation which has taken place in the industry was within the year 1961-1980. After that, the industry has faced another boost within the year 1980-2000. According to some sources and findings, this is the most extensive exposure the sector has ever had. After completion of that, many innovative accomplishments occur, like coming in with AI-based management processes or even coming in with the digital distribution of the industry and many more. Even now, the whole hospitality industry can be demonstrated in different forms or parts like accommodation, food and beverage, travel and tourism and entertainment. Even in the case of big organisations like Airbnb, there is the possibility of having all in one and operating with greater sustainability and compelling opportunities. Along the path, the industry is divided into two parts one is the design-led boutique hotel, and the others are the ones who are operating with greater intensity and efficiency.

History characteristics and importance of the hospitality industry
Ristova and Dimitrov (2019) opined that every industry running around the globe has specific responsibilities to accomplish, so does the hospitality industry. Being one of the esteemed and biggest industries running through the world requires following particular policies that are impactful and quite relevant to its success. Some of the critical characteristics of the industry are commitment, with which the industry gets the opportunity of operating with greater efficiency and makes it much pleasant for the customer or the ones willing to be treated with greater importance. Another critical characteristic of the industry is communication. With good communication, more opportunities are coming into the hospitality industry where the industry professionals are willing to accomplish business goals and establish good relations or atmosphere at the workplace.

Along with the ones mentioned above, there are some more relative or effective characteristics attached with the industry like enthusiasm, knowledge of safety regarding construction, food development or beverages, or many other cases. Without having the proper knowledge, there is a higher possibility that the whole industry might not work efficiently or fail to accomplish its common goals or getting bigger (Perepelytsia and Yurchenko, 2019). Along with the described facts, there is an opportunity where the industry or the whole sector might face difficulty without exemplary leadership. Leading the industry with greater efficiency and higher quality of knowledge is one of the critical characteristics required for the industry. Even in the case of good quality enhancement of quality upgradation for the industry, there will be opportunities where leaders will make the path forward and make sure it aligns the organisation or the whole sector towards success.

Compelling features of business within the industry and the competitive analysis
There are multiple types of features aligned with the hospitality industry, and all the features are very effective for the industry. To enhance or have a higher rate of success, this industry is getting much more productive. An organisation like Airbnb is willing to improve all the creative or effective opportunities for its betterment. One of the biggest or impactful features of the industry is its intangibility. While doing the evaluation, it is found that the hospitality industry is one of the industries which has very seldom relation with other industries, or this industry is very different from other industries regarding the requirement, working principles and other findings. Without having an opportunity to complete or operate with a more significant impact, the probability of leaping higher for the sector is much less. Another critical feature for the industry is its inseparability (Kim, Lee, and Fairhurst, 2017). According to the industry, it is very tough to find any difference in its operating procedure. Without having any change in the operational behaviour, the chance of finding any significant difference between the farms or organisations of the hospitality sector is significantly less.

Another critical feature of the industry is the possibility of working according to the shift. This gives enough opportunity for the workers or the employees of the industry to come up fresh and work with more significant impact making capability. Apart from these, some of the other features of the hospitality sector are perishability, variability, guest satisfaction and many other factors.

Characteristics of the Hotel Grading system
There are many types of grading system running around the Globe for Hospitality industry. According to the evaluation the key five-star rating is identified or given to the independent organisation like AAA rated hotels are Amara Resort and Spa, JW Marriott Tucson Starr Pass Resort & Spa, Hilton Scottsdale Resort & Villas and many others. Then comes to the one-star rating and this make sure that this type of rating means the organisation or the hotel is providing only accommodation.

According to the findings this type of hotels provide basic necessities in accommodation and provides very minimum amenities but greater than one-star hotels.
Hotels with clearer and effective identity and designed outlook with having ability to produce better opportunities are identified as the three-star hotels.
With having effective and efficient furnishing, luxury comfort presentation and giving away some of the luxury’s amenities like high end bath products, electronic communication devices and television with unique design are allocated as the four star hotels.

Internal and external analysis of the hospitality industry
It is crucial to complete an internal investigation for a better understanding and good evolution of the hospitality industry. For doing the internal research of the sector, SWOT analysis will be done to make sure that the positive opportunities, threats or any type of other creative factors are found for the industry.




       The amount of revenue earned by the industry is around $7.60 trillion globally, and this can be identified as one of the critical strengths of the sector (Sota, Chaudhry, and Srivastava, 2020).

       The rate of growth for the hospitality industry in the last six years is around 8.1% which is quite attractive.

       As opined by Lin et al. (2020), in most countries, the hospitality industry generated more than 10% of the actual employment opportunities.

       Even from imposition, the industry has grown into several parts and become something very influential and effective. In the last eight years, the industry has grown close to 73%.

       Even the leadership approaches followed by the industry is something really attractive and quite influential for its growth.

       One of the critical weaknesses of the industry is regarding differentiation.

       With time customer identification or customer adaptability has drawn down for the organisations, and this has become one of the most concerning things for the industry.

       Even customer loyalty has taken a sharp dip downwards, which has become a fundamental weakness for the industry (Hole and Snehal, 2019).

       Even the definition of quality has changed over time, now becoming significantly impactful for business concerns (Nayyar, Mahapatra, Le, and Suseendran, 2018).

       Employee vulnerability to long-term employee findings has become a key reason for weakness in the industry.



       Continuous innovation and an effective operation process in a business context are some of the most extensive opportunities for the industry (Zsarnoczky, 2018).

       Proper responses from the customer end are among the most influential customer identification or one of the most significant opportunities for the hospitality sector.

       Improving customer relationships and more excellent findings is one of the eBay things taking place as opportunities for the hospitality sector.

       The biggest threat coming into the sector is regarding customer loyalty and its vulnerable nature.

       Retention of the customers is also one of the critical issues or threats for the industry.

       Another critical threat for the industry is the impact of the pandemic and the economic slowdown faced by the organisation in recent times.

       Another identified threat is short-term rental providers and critical fact evaluators (Kaushal and Srivastava, 2021).


Along with trite identification of the internal factors of the hospitality industry, there is a good amount of requirement coming in for the research to go on and find out some relatively significant and influential external impacts or external factors. The external factor analysis will be conducted with the help of PESTLE analysis.

PESTLE analysis

Key factors

Description of impact

Impact value


One of the critical political impacts coming over the hospitality sector is the regulations imposed by different states or countries around the globe. With limitations or any kind of issues regarding that, there are possibilities that the hospitality sector is facing a considerable number of cases (Thams et al., 2020). Even with any type of restriction within intercountry travelling, the impact of all that comes over the hospitality organisation becomes one of the critical reasons for the sector to gain lower results. Another significant political factor coming along with the oath is the reformation of tax policies around the world. With time-specific taxes are coming over the hotels and the industry. With that, there is a good amount of impact taking place for enhancement. Even in the case of elections, the stakeholders of the hospitality organisations or the industry are on the verge of influence. The key reason for this is the possibility of having any kind of change with ideology or measures.



According to Khatter et al. (2019), one of the most significant factors coming into the hospitality sector is regarding the investments coming over the whole industry. Even though any type of change or disruption of the currencies around the globe, there is a high set of opportunities for the sector to face the impact of all those. Even according to the economic cycle, there is a possibility that the industry gets affected by its growths or any type of diffusion as the first industry to be involved. 



One of the most significant issues coming into the market or the present scenario of the hospitality industry or the sector is the social requirement of better service at a very nominal or low price. This is one of the most common requirements coming into the sector's path, with such factors working in the chance of gaining a higher order of influence or gaining higher possibilities in the hospitality sector (Malheiro et al., 2020).  Another critical fact or another significant issue coming into the industry is regarding the proper pricing at the right time or having a fixed rate of operation without any time differences.



According to the technological factor, many types of external impacts take place in the hospitality industry. One of the vital technological enhancements is the correct use of AI-based technologies for automation processes in its operation (Khatter et al., 2021). Without being able to do such activities or changing or upgrading with technological enhancement, there is an excellent opportunity for the sector to face huge issues. Along with Thailand, another crucial part of technology in the industry is the advertisement of social media broadcasting of the industry. This has an influential impact on the hospitality industry, which is quite efficient in achieving greater effectiveness.


Legal factors

Being situated near any area known for higher crime rates or any criminal activities has a specific rate of imposition to decrease the opportunity of the business. Along with this, the industry must abide by many rules and regulations according to the country or state. This is very much influential to the success of the sector. One of the common laws or evaluations are innkeeper laws, truth in menu laws, and many more like this (Byrne and Abdul-Ghani, 2017), .but another critical thing that needs to be described in brief is regarding the proper use of the opportunities. With the right option, there will be an opportunity found that the country with stable and written laws has a better chance of doing business with greater possibilities.



With the right environmental policies, it was very influential for the industry to abide by all the regulations to the measures where the outer environment does not come by and make the hotel's atmosphere disturbed. Along with this, having the right environment for the whole business is very influential and effective for the organisation and the sector. One of the environment-based impacts coming over the industry is the place of operation. Being situated in one of the best places gives an edge to the industry to have higher gain.



Better workplace management principles or theories
For completing the operation in the hospitality sector, there is a requirement of using many influential theories. According to the idea of Frederick W. Taylor, it is better to break down every task into parts through the help of standardisation and specialisation for the fitting accomplishment of the whole task within time. This theory is very effective for the managers to know. But for proper procedures and effective enhancement of the industry, the fundamental approaches used by the industry are as follows (Khatter et al., 2021).

Another critical theory that is imperative for the industry is Henri Fayol's principle of administrative management. According to this theory, managers working in the hospitality industry must know six paramount factors: forecast, plan, organise, command, coordinate and control. According to the principle of Fayol, now the whole workplace management is accomplished and completed with more extraordinary ability.

Another practical theory coming into the path of the operation is Max Weber's Bureaucratic management theory. According to this theory, a hospitality organisation must have a good or right generated chain that will be influential and practical to operate. The central fact of evaluation for the theory is to come up with the best opportunities and make the best hierarchy and make sure any kind of enhancement in post preference or any issues must be done according to the performance and qualifications.

Even the theory of Elton Mayo regarding human relations is one of the most commonly used ones working in the present market (Im, Kim, and Miao, 2021). According to this theory, there is a higher probability of coming in where the requirement of conducting experiments in the workplace is higher and satisfying or providing better opportunities to the employees is a crucial way of finding higher productivity. Another theory for better evaluation or enhancement is Douglas McGregor's theory, which critically states that better opportunity provision or motivating the employee can enhance productivity. Even one part of the theory states the fact that participative management is also very influential to success.
Detailed analysis of tourism sector with characteristics
Tourism is one of the sectors which cannot be identified as a critical sector or a sector that is self-reluctant. It has many dependencies, and for making the sector with the best opportunities, there is a requirement for the industry to be a crucial part of the hospitality sector. The industry is mainly based on tourism overviews and operations. One of the most influential characteristics of the industry is inconsistency. This actor cannot be stated as one of the sectors with more extraordinary consultancy. The reason for this is the fluctuating mentality of customers. Another critical fact of evaluation is regarding the intangibility of the sector (Mooney, 2020). Even the industry has varying investments according to the requirement or according to the willingness of the customers. But there is very little flexibility available for this sector. According to the data, it is found that the industry is efficient to have more than $1.9 trillion. Even the evaluation identifies the fact that it is worth more than 3.6% of the global GDP.

Critical indicators of demand for the sector
As per the evaluation of Malheiro et al. (2020), there are certain types of methodological or technological analytics developed by the hospitality industry to forecast the correct demand of the industry. According to the evaluation, one of the forecasting technologies is the use of the Historical Analogy method, survey method, time series analysis, and many other assessment methods. Along with this, many effective processes are coming into the hospitality sector. Generation of demand and consultation with sales and marketing is a critical factor of evaluation too. By doing this, there is a higher amount of opportunity coming into the path of the hospitality industry to gain higher sales and generate efficiency.

Importance of transport, accommodation and attraction and events in hospitality

The key requirement of having transportation is to carry passengers or tourist from one place to another place. With greater transportation the opportunity of success gets enhanced.

It is one of the most influential part of the hospitality industry where the travelers are provided with safety and a place to live. Even accommodation has a role of identifying or making the tourists aware of the place of tourism.

Attraction is the most important task to be done by the organisation to attract the customers with the features of the place of tourism or through the entities provided by the organisations around the globe.

The key requirement for having any type of event is to come up with greater effectivity and ensure safety and all the type of licensing of the industry. By doing this the possibility of enhancing opportunity gets enhanced. Some of the key events taking place in the hospitality industry around the globe are

• HITEC Houston- Huston Texas
• IFEX- Northern Ireland
• EyeForTravelNorth America- Chicago, USA.

Tourism and Tourist
Tourism is accounted as the social cultural and economic phenomenon which enhances the opportunity of intercountry or international movement for the customers. The purpose of movement has an opportunity to differ according to the personal and professional requirements.

There are mainly four type of tourism present around the globe
1. International tourism.
2. Domestic tourism.
3. Long distance tourism.
4. Short distance tourism.

Tourist is one of the persons coming in who is visiting any place for their personal pleasure and interest. The most common case of tourists is regarding the once who use to travel during their holidays and gone on to visit some of the famous tourist spots.

There are three types of tourists present around the globe
1. Domestic tourism
2. In bound tourism
3. Outbound tourism.

Purposes and responsibilities of the tourism sector
Multiple opportunities are coming in the hospitality sector, which is adequate to come up with more significant findings and generate much more revenue for the economic structure development, even in the case of job creations. The hospitality sector has many opportunities or multiple responsibilities to be accomplished or enhanced (Kim, Lee, and Fairhurst, 2017). Another responsibility is to develop the infrastructure of the country and promote better opportunities for the country. Providing better and enjoyable experiences to the customers is also another critical responsibility of the industry. Along with this, providing good quality food and environment in the food and beverages sector is one of the essential responsibilities.

This secondary research has gone on to find all the practical factors about the hospitality industry and critically identified all the pros and cons coming into the industry. In the initial part of the evaluation, the discussion has evaluated the scenario in which the Hospitality industry is running around the world. While doing the debate has demonstrated all the possible gains or the possible amenities the sector is having. Even the discussion has been shown the importance of the industry around the globe or even the amount of GDP it holds. According to the statistics, it is also evaluated that the hospitality industry is efficient to develop 10% of the total employability around the globe. Even the drive is influential in determining the critical enhancement of the whole scenario or increasing the size of the market. Airbnb is one of the organisations which has created a good amount of opportunity in the market with the proper identification of strategies.

After completing this evaluation, the whole research has gone on to find the opportunities or critical theories used in the hospitality sector and found the five most impactful approaches for enhancing the industry. The task has also identified the necessary internal and external impacts coming from the industry in greater need. At the tail end, the commission has gone on to evaluate the tourism sector's effectiveness and identified the critical demand indicators of the industry and how demand can be enhanced in the industry.

Recommendation for the hospitality sector
There is the possibility of giving a more significant number of findings or a tremendous number of readings. Some of the key recommendations are as follows.

The most critical recommendation coming into the hospitality sector is to train its employees with suitable training modules and bring in better opportunities for the industry to enhance in future.
Another critical recommendation that can be given to the hospitality and tourism sector is to come up with and use the best AI-based operations.
Coming in with an online operation platform is a crucial node of work, and making sure about the fact is very important and influential in the future.
Another critical finding coming into the sector is hiring the best and having suitable employee identification or employee selection procedure.

Reference list
Byrne, R. and Abdul-Ghani, M., (2017). Gauging The Hospitality Industry’s Awareness and Commitment to Sustainability Practices: The Case of the Hospitality Industry in Muscat.Journal of Arts and Social Sciences [JASS], 8(1), pp.21-32.
Hole, Y. and Snehal, P., (2019). Challenges and solutions to the development of the tourism and hospitality industry in India. African Journal of Hospitality, Tourism and Leisure, 8(3), pp.1-11.

Im, J., Kim, H. and Miao, L., (2021). CEO letters: Hospitality corporate narratives during the COVID-19 pandemic. International journal of hospitality management, 92, p.102701. Kaushal, V. and Srivastava, S., (2021). Hospitality and tourism industry amid COVID-19 pandemic: Perspectives on challenges and learnings from India. International Journal of Hospitality Management, 92, p.102707.

Khatter, A., McGrath, M., Pyke, J., White, L. and Lockstone-Binney, L., (2019). Analysis of hotels’ environmentally sustainable policies and practices: Sustainability and corporate social responsibility in hospitality and tourism. International Journal of Contemporary Hospitality Management.
Khatter, A., White, L., Pyke, J. and McGrath, M., (2021). Barriers and Drivers of environmental sustainability: Australian hotels. International Journal of Contemporary Hospitality Management. Khatter, A., White, L., Pyke, J. and McGrath, M., (2021). Stakeholders’ Influence on Environmental Sustainability in the Australian Hotel Industry. Sustainability, 13(3), p.1351.

Kim, S.H., Lee, K. and Fairhurst, A., (2017). The review of “green” research in hospitality, 2000-2014: Current trends and future research directions. International Journal of Contemporary Hospitality Management.

Lin, H.C., Han, X., Lyu, T., Ho, W.H., Xu, Y., Hsieh, T.C., Zhu, L. and Zhang, L., (2020). Task-technology fit analysis of social media use for marketing in the tourism and hospitality industry: a systematic literature review. International Journal of Contemporary Hospitality Management. systematic_literature_review/links/5f2a910ca6fdcccc43ac1876/Task-technology-fit-analysis-of-social-media-use-for-marketing-in-the-tourism-and-hospitality-industry-a-systematic-literature-review.pdf

Malheiro, A., Sousa, B.B., Liberato, D. and Liberato, P., (2020). Sustainability In Tourism And Hospitality: Trends And Challenges. Tourism management assignmentIn 35th IBIMA Conference Education Excellence and Innovation Management: A 2025 Vision to Sustain Economic Development during Global Challenges (pp. 15545-15555). IBIZA. links/5f21b653299bf134049252e7/Sustainability-In-Tourism-And-Hospitality-Trends-And-Challenges.pdf

Mooney, S.K., (2020). Gender research in hospitality and tourism management: time to change the guard. International Journal of Contemporary Hospitality Management. 20hospitality%20and%20tourism%20management.pdfsequence=5

Nayyar, A., Mahapatra, B., Le, D. and Suseendran, G., (2018). Virtual Reality (VR) & Augmented Reality (AR) technologies for the tourism and hospitality industry. International journal of engineering & technology, 7(2.21), pp.156-160. Perepelytsia, A. and Yurchenko, Y., (2019). Modern hotel tecnology trends for hospitality industry.

. : . . . , (9), pp.197-202.

Ristova, C. and Dimitrov, N., (2019). Digitalisation in the hospitality industry-trends that might shape the next stay of guests. International Journal of Information, Business and Management, 11(3), pp.144-154. Sota, S., Chaudhry, H. and Srivastava, M.K., (2020). Customer relationship management research in the hospitality industry: a review and classification. Journal of Hospitality Marketing & Management, 29(1), pp.39-64.

Thams, A., Zech, N., Rempel, D. and Ayia-Koi, A., (2020). An initial assessment of economic impacts and operational challenges for the tourism & hospitality industry due to COVID-19 (No. 2/2020). IUBH Discussion Papers-Tourismus& Hospitality. Yang, L., Henthorne, T.L. and George, B., (2020). Artificial intelligence and robotics technology in the hospitality industry: Current applications and future trends. Digital transformation in business and society, pp.211-228.

Zsarnoczky, M., (2018). The digital future of the tourism & hospitality industry. Boston Hospitality Review, 6, pp.1-9.


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