LESSON 2-Fundamentals of Lodging Operations.pptx

talks about the different issues, trends and opportunities of Accommodation Sector

1. COLLEGE OF MANAGEMENT

2. INSTRUCTOR: MS. REGINE SUASE FUNDAMENTALS IN LODGING OPERATIONS

3. L2: THE ACCOMMODATION SECTOR IN A GLOBAL PERSPECTIVE

4. The accommodation sector has been acknowledged as one of the key economic drivers of economic activities in the tourism and hospitality industry. Hotels, Resorts and other accommodation establishments bring in significant developments in different dimensions of the industry, such as economic, socio-cultural and environment.

5. In this ever-changing world, the accommodation sector has been affected by the current global trends, activities, and issues in connection with the visitors, host communities, government policies, and business climate; thus, this sector is a highly competitive arena. A hotel business may “sink or swim” when faced with challenging situations, such as economic downturn, changes in travel patterns and behavior, environmental regulations, and others. The role of accommodation professionals is to keep their brands afloat in times like these. INTRODUCTION

6. The ever-changing industry of accommodation has undergone numerous shifts over the past decade. Here are some of the current global trends in the accommodation and lodging business sector: THE CURRENT GLOBAL TRENDS IN THE ACCOMMODATION AND LODGING SECTOR

7. 1. The Importance of Safety and Security and Sanitation and Hygiene in the Hotel Business Hotel establishments are a melting pot of different types of tourist and visitors. Each property has a distinct characteristics and prioritization in terms of safety and security and sanitation and hygiene. Hotel businesses today are leaning toward ensuring that all guest are safe and secured while they are staying on the property. With the emergence of the global pandemic brought about by COVID-19, hotels and other lodging establishments have strengthened their measures to ensure the safety of their guest.

8. 2. Contactless Payment Most establishments are now geared towards the norm of contactless payment transactions. This gives an impression of safe, fast and hassle-free transaction of the hotel guest. Examples: Apple Pay Google Pay Gcash /Maya QR code Bank Cards w/ micro chip Bank Cards w/ NFC Symbol Online Bank transfer

9. 3. Smart Hotels Smart Hotels are the new concept in the hotel scene. Integrating the Internet of Things (IoT) into the hotel property’s existing features adds up to the desire of the guest to stay with these kind of accommodation. Smart hotels exemplify luxury and, at the same time, convenience to their staying guest.

10. 4. The use of Virtual and Augmented Reality (VR & AR) The 4 th Industrial revolution (4 th IR) has brought significant changes in the global business arena with the introduction of Artificial Intelligence (AI). Virtual Reality (VR) replaces the real world with visual and audio input, while Augmented Reality (AR) layers virtual elements onto the real world. These two new concepts have been added to the marketing and promotions of different hotels and lodging establishments.

11. 5. Robotics in Hospitality Robots have taken over some processes in the hotel sector. Would you imagine that one day, your food order in the restaurant will be served by robots? Well, the future is happening now. Robots are now part of hotel operations: from check-in and guest registration, order taking, room service and until check-out.

12. 6. Digital Guest Experience and Property Review Digital guest experience is a new trend in sharing one’s story on an online platform. YouTube Vlogs, TripAdvisor, Yelp and other sources of guest review are all over the Internet. This trend can help acquire new clients, but it is also vicious when a bad review was left unanswered.

13. With the changes that occur in the tourism and hospitality industry, it is inevitable that the accommodation and lodging sector also experiences some issues and concerns that modern hospitality professionals need to address. Here are some of the contemporary issues in the global accommodation and lodging sector. CONTEMPORARY ISSUES IN THE GLOBAL ACCOMMODATION AND LODGING SECTOR

14. 1. Green Hotel Practices and the Pressure of Designing and Implementing Sustainable Accommodation Many hotels today are claiming that they are practicing sustainable accommodation management simply by presenting themselves as “green” hotels. However, Gren practices do not synonymously go with sustainability. Sustainability involves consensus efforts of all stake holders to make sound decision that will keep the resources available for future use. Most hotel businesses view the results of sustainable practices of their hotel property through the so-called triple bottom line approach wherein the business has to fulfill sustainability in three (3) dimensions; People Planet Profit

15. 2. Global Hoteliers and Shortage of Employment The accommodation sector is a labor-intensive job that requires every business to create and provide jobs employment to the community. Labor-intensive - requires a large workforce and significant human effort to produce goods or services, rather than relying heavily on machines or capital investment. Extensive trainings is being provides to every hotel staff thus requires the hotel management to invest more in hotel skills training. CHED Memorandum Order No. 63, s. 2017 Establishes the policies and guidelines for local off-campus activities conducted by Higher Education Institutions (HEIs) in the Philippines. These activities include educational tours, field studies, seminars, and community outreach programs. The memorandum emphasizes the importance of such activities in enhancing students’ educational experiences while ensuring their safety and welfare . It mandates that HEIs implement due diligence before, during, and after these activities to uphold the well-being of students and staff.

16. 3. Technological Shift on Demands, Customer Satisfaction and Experience, and Hotel Prices We can admit the fact that technology plays a very significant role in all the industries today. Massive and continuous innovations and developments in technology have brought a change in the playing field, especially in the accommodation sector. The integration of social media platforms and review sites has created a huge influence on consumer behavior. The technological shift also brought the integration of AI, VR, and AR to our doorsteps. The advent of the 4th IR has paved the way to a collaborative environment between organic hotel employees as well as the new technologies to better serve the guests.

17. 4. Increasing Hotel Options Means Lesser Hotel Brand Loyalty The competition in the hotel sector becomes stiffer as major international hotel chains expand their operations on the local scene. The options of the travelers have increased, resulting in a dwindling figure in the aspect of hotel brand loyalty. As business professionals always say, "It is easier to sell your products to a returning customer rather than to convince a new customer to buy your products for the first time." Hotel brand loyalty is a key ingredient in the success of the hotel business in terms of repeat purchases. Repeat customers are easier to handle and impress since these types of guests already have prior knowledge of your property. Their expectations are almost at par with the service that you can deliver. So, with the increasing number of hotel options, the risk of maintaining a good number of hotel patrons seems to be a tough challenge for hoteliers these days.

18. The future of the accommodation and lodging sector relies heavily on the current trends in the tourism and hospitality industry. As we have encountered in the year 2020, the challenges brought to the tourism and hospitality industry by the COVID-19 pandemic have severely affected the tourism statistics in all facets. OPPORTUNITIES AND FUTURE DEVELOPMENTS IN THE GLOBAL ACCOMMODATION AND LODGING SECTOR

19. Based on the UNWTO 2020 report, a dramatic decline of -74% in global tourism arrivals has been recorded. Technically, it is the lowest recorded figure ever in the history of the industry.

20. In terms of the regional impacts, the ASEAN region garnered the most decline in numbers of international visitors at -82% due to the strict travel protocols and closing of travel borders.

21. With this in mind, the global accommodation and lodging sector has been under fire since the start of the year 2020. Hotels and other accommodation establishments must comply with international health and safety standards set by the World Health Organization (WHO), as well as the national and local health and safety protocols where their property is located. This sudden shift in the business environment, as well as the operational requirements, has caused some of the hotels to reduce their operations, cut down costs, mass layoffs, and even file for bankruptcy.

22. Hence, the future of the global accommodation and lodging sector can be summarized in three reasons: 1. Compliance with the "new normal" operations 2. Creating more effective marketing strategies to ensure the guests stay in the hotel 3. Integration of technology to augment customer service

23. LESSON SUMMARY In this lesson, we discussed the different trends in the global accommodation scene , such as the importance of safety and hygiene in the hotel business , contactless payment systems , smart hotels , the integration of augmented reality (AR) and virtual reality (VR) , robotics in the hospitality , and digital guest experience and property review . These trends have shaped the accommodation sector of today.

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