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Top 8 Crucial Hospitality Challenges in 2024 and Their Solutions

The hospitality industry is rapidly changing with many challenges that must be addressed. Let’s discuss their impact on the industry, what steps should be taken, what is important to pay attention to, and initiatives that need to be implemented for your business to succeed.

  • 1. Technologies in hospitality: keeping up with the latest innovations

From AI-powered chatbots to integrated systems for booking and reservations, businesses in the hospitality industry must stay abreast of the latest technological developments. These advances can help streamline internal processes, reducing manual labor while improving productivity and customer experience.

10 innovations in hospitality industry

10 Must-Know Technology Innovations in the Hospitality Industry

As technology becomes ubiquitous, embracing its potential is key to staying competitive in the hospitality industry. Consider launching your own website development with payment gateway integration. This will make your hospitality business one step closer in a technological sense and an order of magnitude higher among competitors and in customers’ eyes.

  • 2. Health and safety concerns for hospitality workers

The hospitality industry is particularly vulnerable due to the close contact with guests and the array of workplace processes. Here is a list of some health and safety measures that are recommended for implementation:

  • Personal protective equipment (PPE) such as gloves and masks;
  • Cleaning and sanitizing high-touch surfaces such as door handles and tables;
  • Proper ventilation in work areas to reduce heat stress and improve air quality;
  • Non-toxic cleaning products and chemicals;
  • Safety training for employees who use potentially hazardous equipment or chemicals;
  • Developed emergency plans for fire or other accidents;
  • Conducting regular risk assessments of the workplace;
  • Proper lighting to prevent slips or falls;
  • Encouraging hand hygiene and providing sanitizers for employees.

Considering the above, hospitality businesses can create a safe workplace environment for their employees while protecting their customers or guests from potential harm. 

  • 3. Hospitality industry and its impact on social media

Despite the advantages, social media poses various challenges for business owners. The 24/7 nature of their operations means companies must constantly be on their guard for negative reviews and customer feedback. This can have an immediate and potentially damaging effect on a business’s reputation.

Social media challenges and solutions for hospitality businesses

All hospitality businesses should explore social media to maximize their reach in today’s market. A strong presence on social media platforms is critical for engaging customers and keeping their interest—so ensure you’re prepared!

  • 4. The growing importance of sustainability

The hospitality industry is a significant contributor to environmental pollution. However, increasing public awareness has pressured it to become more sustainable. The survey of Luggage Hero clearly shows that 87% of travelers want to travel more sustainably.

Number of travelers who prefer sustainable vacations

Number of sustainable travelers

So, there is still room for growth in developing the eco-friendly and sustainable hospitality industry. Here are a few key strategies to follow:

  • Investing in renewable energy sources such as solar and wind power;
  • Utilizing green building materials such as bamboo and recycled materials for construction and furnishing;
  • Offering guests to buy sustainable products such as organic foods, eco-friendly toiletries or reusable water bottles;
  • Implementing green cleaning practices that minimize the use of harsh chemicals and maximize efficiency in water usage;
  • Offering guests the option to go paperless when booking services or checking out from the hotel or restaurant.

By taking steps towards sustainability, hospitality businesses will not only be able to reduce their carbon footprint but also save money in the long run by utilizing more efficient technologies.

  • 5. Labor shortages in the hospitality industry

Finding and keeping qualified staff is crucial in the hospitality sector. To help combat labor shortages, businesses must ensure their workplace is attractive to potential employees:

  • Offering competitive wages and benefits packages  such as health insurance, retirement savings plans, paid time off, and other perks like employee discounts, can attract top talent and distinguish a business from competitors.
  • Create a flexible work environment.  Part-time or remote work arrangements can help attract a wider pool of candidates and improve employee satisfaction.
  • Foster a positive work culture.  Make your employees feel valued and motivated to stay with you. This may include opportunities for professional development, regular feedback and recognition, and team-building activities.
  • Develop training and career development programs : Invest in building employees’ skills and advancing within the company. It can increase job satisfaction and reduce turnover.
  • Streamline hiring processes : Simplifying and expediting it can help businesses attract and secure top talent before accepting competitors’ offers.
  • 6. Rising competition in the hospitality

Greater emphasis on experiences and customer service means businesses must work harder to differentiate themselves from competitors. So it is essential to be aware of both direct and indirect competition.

Examples of direct and indirect competition for hospitality businesses

Hospitality companies must create unique experiences to help set a business apart. If you are stuck with this issue, you can use our consultation services from experts with 10+ years of experience and find a solution instantly.

  • 7. Preparing for the digital transformation of the hospitality

The industry must stay abreast of the trends and invest in digital solutions. This can range from leveraging AI for customer service and personalized offerings to investing in mobile applications and other digital infrastructure. Consider these points:

  • Analyze your customers’ digital behavior.  Understanding what your customers want today and what they may need in the future. Look closely at their behavior when engaging with your brand online and use this data to craft a better experience.
  • Invest in robust technology.  Investing in it is necessary for initial setup, maintenance, and upkeep. Research all options before choosing a technology that best suits your budget and needs.
  • Adapt strategically.  As technology changes, so should your strategy for using it effectively. Regularly assess how well you leverage these tools to ensure you are seen as modern and relevant in an ever-changing landscape.

By taking these steps, you can confidently prepare for the digital transformation of the hospitality industry — setting yourself up for success now and in the future.

  • 8. Embracing maintenance 5.0 into the hospitality industry

As the hospitality industry’s demands evolve, many industry leaders are turning to Maintenance 5.0, a web-based maintenance management system that acts as an integrated platform to streamline processes and help businesses increase efficiency.

Maintenance 5.0 applications in the hospitality industry

With Maintenance 5.0, it is easier to address the challenges. You can quickly identify potential problems, prioritize repairs, and establish preventive maintenance programs that turn challenges into opportunities.

To thrive in the competitive hospitality industry, businesses must stay up-to-date on industry trends and challenges. By staying agile and adaptable to evolving customer expectations and technological advancements, professionals can ensure a prosperous future for the industry.

  • Frequently Asked Questions Related to the Hospitality Industry Challenges

1. What are three issues in the hospitality industry?

There are many issues that the hospitality industry faces, but here are three common ones:

  • Labor Shortages : The industry faces a staff shortage, leading to lower-quality service and higher staff turnover rates.
  • Online Reviews : Customers have the power to influence a business’s reputation through online reviews, making managing feedback crucial for businesses.
  • Sustainability : Heavy use of resources in the hospitality industry contributes to environmental degradation, and businesses that do not address sustainability concerns risk losing customers and damaging their reputation.

2. What is the biggest issues and challenges faced by the tourism and hospitality industry?

The biggest challenge facing the tourism and hospitality industry is the COVID-19 pandemic. Other ongoing challenges include sustainability, digitalization, changing consumer preferences, labor shortage, and some regions’ political instability/security concerns.

3. What are the 7 critical risks facing the hospitality industry?

While there may be various critical risks facing the hospitality industry, here are seven common ones:

  • Economic Fluctuations : The industry is vulnerable to economic downturns, leading to reduced travel and revenues.
  • Natural Disasters : Disruptions and property damage can occur due to natural disasters.
  • Cybersecurity : Businesses are vulnerable to cyber attacks that can lead to data breaches and financial losses.
  • Regulatory Compliance: Compliance with regulations is necessary in areas such as health and safety, labor laws, and the environment.
  • Reputation Management : Negative publicity or reviews can damage a business’s reputation and decrease bookings.
  • Geopolitical Risks : Political instability, terrorism, and security concerns in some regions can lead to decreased bookings and revenues.
  • Health and Safety : Businesses must implement strict health and safety protocols, including for COVID-19, food safety, and the spread of infectious diseases.

4. What are the challenges faced by tourism industry?

The tourism industry faces a range of challenges, including:

  • COVID-19 Pandemic;
  • Sustainability;
  • Digitalization;
  • Changing Consumer Preferences;
  • Safety and Security;
  • Political Instability;
  • Economic Fluctuations;
  • Infrastructure;
  • Talent Shortage.

5. What is the biggest challenge in hospitality?

The biggest challenge in hospitality at present is the COVID-19 pandemic, which has caused a significant decline in travel and tourism, leading to revenue losses for businesses, as well as operational challenges due to new safety and health protocols.

6. What are the international issues in hospitality?

Some of the international issues in hospitality include:

  • Travel restrictions and visa policies;
  • Political instability and conflicts;
  • Cultural differences;
  • Global economic trends;
  • Sustainable tourism;
  • Labor laws and employment practices;
  • Global health issues like the COVID-19 pandemic.

7. What are the weaknesses in hospitality industry?

The weaknesses in the hospitality industry include dependence on external factors, high competition, seasonal demand, high labor costs, high initial investment, technological challenges, and sustainability issues. It perfectly demonstrates the need for businesses to continually adapt and evolve to changing market conditions. By focusing on customer needs, implementing sustainable practices, and investing in technology, hospitality businesses can better position themselves for long-term success.

8. What is problem solving in hospitality industry?

Problem-solving in the hospitality industry involves identifying and addressing challenges and issues while providing services to guests. Some common problems that may arise in the hospitality industry include guest complaints, staffing issues, equipment failures, supply chain disruptions, and financial challenges.

9. What are the big five in hospitality?

The “Big Five” in hospitality refers to the five major segments of the hospitality industry, which are:

  • Food and Beverage;
  • Travel and Tourism;
  • Entertainment;
  • Recreation.

These five segments are interdependent and work together to provide an overall experience for customers. Each segment presents unique challenges and opportunities for businesses, and success in the hospitality industry often involves effectively managing all five segments.

10. What are the negative impacts of hospitality?

The hospitality industry can negatively impact the environment, society, and economy. Here are some of them:

  • Environmental impact . Environmental degradation, such as waste generation, water and energy consumption, and greenhouse gas emissions;
  • Cultural impact . The rapid growth of tourism and hospitality can lead to cultural commodification, loss of authenticity, and cultural clashes.
  • Social impact . Social issues such as overcrowding, labor exploitation, and gentrification.
  • Economic impact . The hospitality industry may create economic imbalances by driving up prices and creating wealth disparities between local communities and tourists.
  • Health impact . Hospitality can pose health risks, such as the spread of diseases, food poisoning, and accidents.

It is important for the hospitality industry to recognize and address these negative impacts by implementing sustainable practices, respecting local cultures and communities, providing fair labor conditions, and prioritizing the health and safety of guests and employees.

11. What are the pros and cons of hospitality?

Here are main pros and cons of the hospitality industry:

The hospitality industry has many benefits. However, some challenges may arise. They can be effectively addressed by management and strategic planning.

Updated on: 2024-02-04 . Author: Karina

Tags: Hospitality management

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10 Common Hotel Problems and Solutions

Stephen Alemar

Being a hotelier can be both rewarding and exhausting. Tending to guest needs and ensuring an exceptional experience at your hotel for everyone who walks through the doors of your lobby is a busy job — a job that is regularly made all the busier when problems inevitably arise. Hotel problems can present themselves in many forms. Whether it’s a guest complaint, a busted thermostat, paperwork problem, long line in the lobby, or cold showers, there’s almost always problems that need to be solved at a hotel.  

However, when problems rear their ugly heads, it doesn’t always have to be a giant distraction. Conceiving a plan of action for how to deal with various hotel problems and figuring out effective solutions ahead of time will allow hoteliers to roll with the punches and solve issues quickly.

Each hotel, depending on its location, facilities and customer types, will have a somewhat distinct set of problems they can expect to receive. Regardless, there are some common problems consistent across hotels, no matter their differences. 

The most common problems hotel staff members may encounter in the course of running a property include: 

  • Lack of complimentary supplies
  • Long lines at the front desk 
  • Slow room turnover
  • Lack of guest information from OTAs
  • Low guest satisfaction scores 
  • Closed amenities
  • Credit card authorization forms that aren’t PCI compliant
  • Staff shortages 
  • Low hotel app adoption
  • High call volumes at the front desk 

Let’s now take a brief look at each of these problems in detail and review a corresponding solution.

what is problem solving in hospitality industry

Lack of Complimentary Supplies

‍ Problem: Although it may not appear to be the most critical thing to consider, many guests will anticipate complimentary amenities such as shampoo, soaps, coffee and tea, despite the type of property at which they are staying (e.g., full service, limited service, luxury, etc.). Unfortunately, a lack of these types of basic room commodities can result in low guest satisfaction scores and negative online reviews — even if the rest of their stay is fantastic.

Solution : To keep your visitors as pleased as possible, hoteliers would be wise to stash large quantities of complimentary room supplies in closets and cleaning stations around their property. This ensures that housekeeping teams are able to easily access a reliable storehouse of these supplies quickly, no matter where they are on the property. 

And if your property belongs to a larger hotel group or management company, be sure to see if there are promotional deals available with certain brands that provide these types of products. 

Long Lines at the Front Desk 

Problem: Nobody likes long lines, and this is especially true when a person is waiting on something they don’t just want, but need — like a comfortable room with a bed in it. Long lines at a hotel’s front desk can be a real problem for desk agents as they can cause guests to become frustrated and argumentative.

Solution : Front desk staff at any hotel can improve their overall efficiency, streamline the guest experience and eliminate long lines in the lobby by offering a Contactless Check-In solution to guests before they ever set foot on the property. Contactless Check-In enables guests to go through the check-in process conveniently on their own mobile devices. This tool frees up front desk staff to spend more time fielding questions from guests and less time dealing with administrative paperwork.

Slow Room Turnover

Problem: The ability to turnover rooms quickly is one of the essential keys to success in the hospitality industry. If a property is short staffed, or just generally having issues running a housekeeping department efficiently, this can result in negative consequences for both guest satisfaction scores and a hotel’s revenue. 

Solution : Hoteliers need to do everything they can to ensure their housekeeping teams are able to turnover rooms quickly. This can include ensuring things like all housekeeping stations across a property are well stocked with cleaning supplies and accounting for other logistical challenges. However, technology also has a role to play in boosting housekeeping efficiency.

Contactless Checkout solutions enable guests to checkout at their own convenience from their mobile devices. These types of tools are highly valued by guests because they make a hotel visit all the more streamlined and peaceful. However, they also have the added benefit of informing hotel staff as to which rooms are ready to be turned at the precise moment a guest leaves. Essentially, this provides a housekeeping team with a real-time map that shows where staff members need to be on the property.

Lack of Guest Information From OTAs

Problem: OTAs can be very useful in generating reservations at a property, but they are not without their downsides. In addition to the problems inherent in the concept of rate parity, OTAs usually don’t provide a hotel with crucial guest information such as their email address. This lack of information can keep properties from building their own database of marketing contacts that could be used to promote loyalty programs and direct sales campaigns.

Solution : The key to solving this problem is to somehow add the registration of an email address to the check-in process. This information can be collected in person at the front desk, but this approach has the disadvantage of potentially provoking an uncomfortable question about why the hotel is requesting an email. Additionally this will slow down the overall check-in process and may lead to longer wait times for guests looking to collect their room keys.

Instead, forward-looking hoteliers should search out technology solutions that enable a Contactless Check-In flow that can be customized to capture this crucial customer data.

what is problem solving in hospitality industry

Low Guest Satisfaction Scores 

Problem: Bad reviews happen. It’s unfortunate, but it’s so. They can occur for nearly infinite reasons and they are the bane of every hotel manager’s existence.  

Solution: When one- or two-star reviews occur it’s generally best to find out why as soon as possible. Including a star-rating step in a Contactless Checkout flow that can be accessed through a guest’s mobile device allows hoteliers to identify dissatisfied guests early and potentially resolve any issues before they depart the property.

Closed Amenities

Problem: For a variety of reasons, a hotel may need to close services and amenities. The reasons why can range from the sun has gone down and the masseuses have gone home to a maintenance with a hot tub or sudden thunderstorm over a lakeside resort. Understandably, when amenities are closed, but guests are expecting them, this can leave patrons feeling less than pleased. After all, a property’s particular amenities may be one of the reasons guests wish to stay at the location in the first place. 

Solution: To minimize surprises, hotel management should do its best to ensure guests are made aware of the operating hours of guest services. It’s wise to include this information during the check-in process and make it available in each hotel room in the forms of brochures, pamphlets, etc.

If a hotel’s management team is forced to close amenities and guest services unexpectedly, it’s best to be proactive with your communication. Using a guest messaging tool that allows you to broadcast text message guests at scale with the relevant information enables you to ensure guests know before they find out on their own. Better to get ahead of this problem while the engineering team works on it. 

what is problem solving in hospitality industry

Credit Card Authorization Forms That Aren’t PCI Compliant & Lead to Fraud 

Problem: Many hotels are still using paper credit card authorization forms despite the fact that it is no longer considered PCI compliant to do so. Obviously, collecting sensitive guest information in such an insecure way is a significant problem for many hotels and can lead to thousands of dollars in lost revenue from fraud and chargebacks.

Solution: Hoteliers that wish to reduce fraud and chargebacks at their properties should look for PCI compliant Digital Authorizations solutions that are guest-friendly and easy to implement. It’s time to say goodbye to paper forms forever. 

Staffing Shortages 

Problem: Staffing shortages have been a problem for hotels since there have been hotels. For most hotels, staff shortages can be due to regional issues in the job market. However, as demonstrated by, and in the wake of, the COVID-19 pandemic, sometimes the worldwide hospitality industry suffers a staffing shortage at the same time. 

Solution: The solution to a staffing shortage is twofold. The first step is to build a recruiting program for staff at your hotel. Look at surrounding properties and find out if they offer bonuses and try to match them. Also, it never hurts to let candidates know that advancement opportunities are available.

‍ The second step in solving a staffing issue, is to lean on guest-facing technology solutions that can automate messages to guests and enable them to operate more independently during their stay. 

Low Hotel App Adoption 

Problem: Many hotels have adopted new technologies in recent years to address changing consumer behaviors (thanks to COVID), which is good news. However, many of these hotels have bet big on developing a native app for their properties, and that’s less good. Native apps have a relatively high barrier to entry as they need to be downloaded onto a person’s smartphone. For a variety of reasons, hotel guests generally fail to adopt native apps at scale .  

Solution: Hotels should opt for web-based technologies that can be accessed through the browser of a mobile device. This avoids the need for downloads entirely and allows for a more streamlined experience. Plus, hotels will find much higher adoption rates than they otherwise would with a native app.

what is problem solving in hospitality industry

High Call Volume at Front Desk 

Problem: High call volumes can be both good and bad at a hotel. A large call volume generally means (hopefully) that a hotel is full of guests, which is great. However, too many calls to the front desk can overload staff and leave guests waiting for answers. This is a problem that almost every hotel will have to deal with at one point or another. 

Solution: Offering a messaging solution to hotel visitors that works with the existing messaging apps on their mobile devices can go a long way toward cutting call down call volumes. Hoteliers that plan to add a messaging solution to their guest experience should look for tools that enable them to save valuable time through automated, broadcast and direct messages.

As stated at the beginning of this post, running a hotel is an incredibly busy job that requires hoteliers to plan ahead for problems. Knowing what levers to pull on and solutions to deploy beforehand can keep everyday issues from turning into minor catastrophes. As outlined above, the two most useful things for any hotelier in a time of need are reliable technology tools and thought-out plans of action. With these in hand, a savvy hotel staff will be able to ride out any problems they may encounter. 

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How creativity and problem-solving can make you a better manager

In the hospitality industry, especially, there are so many unexpected situations that could happen daily. As a manager, the ability to think on your feet is a soft skill that you already need to have; flexibility and adaptability are also important. That’s where creativity and problem-solving come into play. By thinking outside the box and realizing every situation isn’t a “cookie-cutter” occurrence, you can be a better manager. Not only will that benefit your guests, but it can make you more of a positive force with your staff, too. In this blog post, we look at different ways to help you think creatively and adopt a problem-solving mindset to manage day-to-day tasks as a great manager. 

Images_Blog_120220 (5)

Staying on top of your  hospitality training is always the best practice you can take. But, allowing yourself to use your natural creativity in tandem with your training will yield better results.

So, how can you do that? 

Work with your staff

In a 2018 poll conducted by Monster,  76% of employees  in the U.S. said their boss was “toxic.” When your team feels micromanaged, underappreciated, or overworked, their productivity and morale will suffer. You might even deal with a high turnaround rate or find it difficult to keep people on board for long periods of time. 

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Including your staff in your decision-making processes as much as possible can make a big difference. That doesn’t mean getting them to do your job for you. But, hearing their input is important. Consider having  brainstorming sessions  at least once a month with an outlined agenda of things like: 

  • Describing a problem to solve
  • Asking questions to inspire your team
  • Allowing everyone to give their input and new ideas
  • Elaborating on those ideas
  • Discussing next steps

Everyone wants to feel like their voice is being heard. You never know what great ideas your staff might have unless you’re  willing to listen and learn . Doing so will help to improve your communication skills and burst through any managerial plateau you may have been stuck on. 

Unbeatable service starts with happy, confident staff.

Typsy’s 1000+ hospitality lessons are practical, effective, and fun! You can develop a more well-rounded understanding of what it takes to deliver an incredible hospitality experience to every customer, every day.

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Promote positivity

The best managers always seem to have a plan in place. That’s a good thing. But, in the hospitality industry, the unexpected can happen at any moment. So, plans may not always go the way you want them to. Allowing yourself to get frustrated by that can quickly rub off on your employees, creating a culture of contention and frustration rather than peace and contentment. 

Additionally, if you’re trying to be too strict as a manager to earn respect, you might be faced with the opposite response.  Instead, try to promote positivity and a healthy work environment in every situation. The benefits of a  positive work environment  include: 

  • Boosted productivity
  • A team that is more willing to work together
  • Employees that are willing to be more creative
  • A better attitude when your team is working with guests

A positive workplace culture isn’t always easy, and it takes effort. Things will happen that can trip you up. But, even when you’re frustrated, maintaining that environment is essential to keep your team at their best. 

Don’t be afraid to have some fun with this idea, too! Put together team-building games, host healthy internal competitions, and provide incentives for team members who excel with guests.

Be a leader

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A strong sense of professionalism is expected in the hospitality industry. However, that doesn’t mean you should be rigid. Allow yourself to be flexible as a manager and be willing to think on your feet using creativity and problem-solving for everyday routines, as well as unexpected situations.

Have a question about online hospitality training? We’re always ready to talk .

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13 Team-Building Activities for Hotel Staff That Actually Work

Group of people sitting smiling during team-building activity

Team-building activities are used by many businesses, including hotels, to promote teamwork and improve the way staff members interact. While most of us are familiar with a team-building activity or two, they actually exist in several different forms: Team challenges, partner exercises, obstacle courses, puzzles, icebreakers , or even a coffee break. Team-building activities for hotel staff may look like outdoor games, puzzles, or office meetings, but they are designed to successfully engage employees , strengthen job skills, and help hotel staff members work better together.

In this post, we highlight a variety of team-building activities for hotel staff and discuss how each exercise benefits employees. Could your team benefit from improved communication skills, stronger team bonds, or a hearty morale boost? If so, consider using some of the following team-building activities to help achieve your goals.

Explore 13 of our favorite team-building activities for hotel staff

Every facet of hotel operations, from hotel revenue management to property maintenance, relies on teamwork. Incorporating team-building activities for hotel staff can benefit both hoteliers and employees by:

  • Building trust
  • Boosting morale
  • Improv ing communication
  • Enhancing problem-solving abilities
  • Strengthening change management skills
  • Empowering hotel staff
  • Encouraging e mployee bonding

Successful team-building activities are fun, engaging, and have a clear objective. Whether your goal is to energize hotel staff, increase productivity, kick off a meeting, or create a better work environment, choose a team-building activity that aligns with your core objective.

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“Team building enhances higher levels of trust and support," said  Tinuke M. Fapohunda in  Towards Effective Team Building in the Workplace . " With team building, diverse co-workers work well together and there are higher levels of job satisfaction and commitment."

Team-building activities that grow trust

Hotel employees must work together to solve complicated problems every day. In the most successful hotels, employees know that they can trust and rely on each other. Try these team-building activities to build trust amongst your hotel staff:

1. Perfect Square: 10-15 minutes

Perfect Square is a fun, simple team-building activity that can help build trust between hotel staff members. The objective of Perfect Square, also called Blind Square, is for team members to work together to form a perfect square. To play, you will need a long rope and blindfolds for each participant. You can use bandanas, eye masks, or other eye coverings.

Stary by arranging blindfolded hotel staff members into a circle holding a long rope. Without being able to see, participants will drop the rope and take 2-3 steps backward. Instruct the team to return to the rope, still blindfolded, and work together to form the rope into a perfect square. When the team agrees they have successfully formed the shape, they will lay the rope on the ground before removing their blindfolds to view the final product. Discuss the exercise as a group.

To successfully complete this challenge, team members must listen well and trust the instructions of their fellow teammates. Because each participant can only feel the tension of the rope in their hands, and the movements of the players next to them, achieving the common goal requires trusting the entire team.

Bonus challenge: To make this team-building activity more difficult, challenge the team to form a more complicated shape, such as a pentagon or hexagon.

2. Blind Snake: 5-10 minutes

Line hotel staff members up in groups of five or six with their hands on the shoulders of the person in front of them. Each participant will be blindfolded, except for the person at the very back of the line. This team member — the caboose — will guide the line around various obstacles by giving verbal instructions. Having only the eyes of the caboose to rely on, Blind Snake participants must have blind trust in the instructions they receive, as well as the movements of the person in front of them.

3. Winner or Loser: 15-20 minutes

This team-building activity can help build trust and strengthen bonds between hotel employees. In Winner or Loser, hotel employees will be partnered up in teams of two. Instruct pairs to find a quiet spot in the hotel where they can speak privately.

To begin, one employee will share a personal story about something negative that they have experienced in their life, going into as little or as much detail as they prefer. Once finished, the listener will then repeat the negative event while focusing only on the story’s positive outcomes. The pair will then switch roles, with the listener becoming the storyteller.

By sharing personal stories with each other, team members will have a unique opportunity to build trust with one another, bond, and look at a negative personal experience in a new way. The more empathy employees have for each other, the more positive and supportive the hotel environment can be.

The Center for Creative Leadership analyzed data from 6,731 managers across 38 countries to evaluate whether empathy in the workplace had an impact on employee job performance. Their reported findings concluded that “empathy in the workplace is positively related to job performance.” In addition, they found that managers are viewed more positively by their bosses when they practice empathetic leadership.

“Demonstrating empathy in the workplace — a key part of emotional intelligence and leadership effectiveness — also improves human interactions in general and can lead to more effective communication and positive outcomes, in both work and home settings,” the Leading Effectively team concluded.

What's hot, what's not? 11 industry trends you need to know

Team-building activities that improve employee communication

No two days are the same for hotel employees. Whether navigating a rush of early check-ins, dealing with an unexpected plumbing problem, or mitigating interpersonal conflict, effective employee communication is a critical component of daily hotel operations. Invite employees to participate in team-building activities for hotel staff communication, such as:

4. A rollaway race: 15-20 minutes

Room attendants use their voices to guide team members from other departments as they attempt to make guest-room-ready, inspection-passing rollaway beds. Set a time limit for task completion, and see which teams are the most successful.

Communication is the only tool for assistance in this challenge. Participants must identify how their partner best receives instructions and shift their communication style to fit their partner’s needs. This team-building activity also gives employees from other departments a glimpse into housekeeping by demonstrating just one of the detailed tasks room attendants perform each day.

Bonus challenge: Blindfold the bed-maker to make this activity more difficult.

5. Non-work conversations: 15-20 minutes 

Team-building activities for hotel staff aren't always game or challenge-based. A quick chat with team members over breakfast can fall in the team-building category. Non-work discussions are critical for building productive communication channels between hotel managers and employees.

Data consistently supports that how we communicate can be much more important than what we communicate. MIT’s Human Diagnostic Laboratory conducted a study with the purpose of observing and identifying the key differences between top-performing teams and those with average performance. Researchers found that the most successful teams could be identified amongst their counterparts by their communication patterns; that communication patterns are important enough that they can be used to identify the best of the best.

The MIT report concluded, “With remarkable consistency, the data confirmed that communication indeed plays a critical role in building successful teams. In fact, we’ve found patterns of communication to be the most important predictor of a team’s success. …The key to high performance lay not in the content of a team’s discussions but in the manner in which it was communicated.”

Encourage your team members to join you for a cup of coffee or a slice of pizza. Talk to your team about their hobbies, personal goals, favorite foods, and other non-work-related topics. In an informal setting, you may find that employees are more willing to share candidly, especially when accompanied by their peers. You may also discover that multiple employees are facing similar challenges or be able to identify staff members who would work well together on future hotel projects.

6. Back-to-back art projects: 20-30 minutes

To prepare for this activity, draw random geometric shapes on multiple notecards to create abstract images: no rhyme or reason required. Next, divide hotel staff members into teams of two, and instruct each pair to sit with their backs together. Provide each team with a whiteboard and two of the notecards you created with the images facedown.

One person from each team will select an image card and spend 5-10 minutes describing the geometric image to their partner. Without being able to see their instructor, the listener will try to recreate the image using only their partner's descriptions. When the time limit has expired, teams will compare the two images before switching roles in the activity.

Once both employees have had an opportunity to recreate an image, encourage a brief team discussion about the exercise: 

  • Did team recreations match the original images?
  • Did both partners communicate effectively?
  • Which instructions were the most helpful for each player? Why?
  • When and why did each participant shift their communication style?
  • Would any verbal adjustments have made it easier to recreate the image?

Ask each team to choose one or two key takeaways to share in a larger group discussion. Pinpoint recurring messaging and communication strategies , explore unique partner observations, and prompt each employee to identify one way they can improve their team communication skills in the future.

Problem-solving and decision-making team-building activities

Hotel employees need to feel empowered to make independent decisions effectively and with confidence. They should be able to provide excellent service and impress hotel guests while mitigating risks for the business at the same time. Incorporate team-building activities for hotel staff that are focused on decision-making and encourage teams to solve problems together.

7. Escape room: 60-90 minutes

Treat your hotel staff to a team-building outing to an escape room. Escape rooms are puzzle-themed activities that require participants to work together to uncover clues and solve complex riddles in order to escape a locked room.

Escape rooms and similar interactive group problem-solving experiences incorporate a variety of vital hotel team behaviors. In addition to requiring teamwork, communication, and problem-solving skills to escape their environment, hotel staff members will need to stretch their creative muscles and concentrate to perform well in escape-based team-building activities .

8. Boat Float: 25-30 minutes

Divide the hotel staff into teams of 4-6, and provide them with the same materials: cardboard, scissors, and tape. Give each team a brief time limit, 15-20 minutes, during which their goal is to craft a functional boat using only the provided materials. While the clock is ticking, fill up the bathtub in a non-occupied guest room. At the end of the time limit, each team will get an opportunity to see if their boat holds up on the water.

Boat Float is a creative, interactive team activity that can inspire hotel staff to think out of the box, work together, and discuss the best way to make a functional cardboard boat. Pay attention as each team discusses their strategies and take note of their communication skills. Identify which team members take the lead, those who do not speak up as much, and how team members discuss, evaluate, and overcome conflicting strategies.

“We always hope for the easy fix: the one simple change that will erase a problem in a stroke. But few things in life work this way. Instead, success requires making a hundred small steps go right - one after the other, no slipups, no goofs, everyone pitching in," said  Atul Gawande in Better: A Surgeon’s Notes on Performance.

9. Team Puzzle: 10-20 minutes

Starting a meeting with a friendly, low-stakes puzzle competition can help employees loosen up as well as get their minds moving. Separate the hotel staff into teams that will race against each other to solve the puzzle first, or have the whole staff work together to solve a more complex puzzle. Team members will have to work together and communicate to complete the challenge, promoting employee engagement and teamwork.

Team-building activities that build bonds and boost morale

Employees who work in a supportive environment with high morale are more motivated, efficient, and engaged than employees who do not. According to the American Psychological Association , workers who enjoy their job are “twice as likely to be thriving in their lives overall — reporting strong relationships, effective money management, good health and engagement in their communities — as those who are disengaged and unhappy at work.”

Boost team morale and encourage employee bonding through team-building activities for hotel staff, such as:

10. Three-eyed ball toss: 5-10 minutes

Draw three eyes on a beach ball. Each of the eyes represents a word beginning with the letter “I”: improvement, intention, and inspiration. Gather hotel staff in a circle for this fun team-building activity, introduce the three-eyed beach ball, and explain what each of the eyes represents.

To play the game, start by choosing one of the three themes, and asking a corresponding question:

  • “How does hospitality inspire you?”
  • “What inspires you personally?”
  • “What is your intention for today's meeting?
  • “What skills have you most improved this year?”
  • “What skill would you like most to improve?”

Use this activity as a meeting icebreaker or kick off your hotel huddle with a toss of the three-eyed beach ball for an injection of energy and positivity. Whether you need to help the hotel staff focus on the task at hand or help raise their spirits after a tough week, this team-building activity will do the trick.

11. Recognition competition: Long-term (1-6 months)

In this team-building activity, encourage team members to recognize each other for going above and beyond. Instruct hotel staff to complete comment cards and submit them to their department leader for counting. Place recognition cards in guest rooms and public areas of the hotel and instructions on where to turn them in so that guests can participate as well.

Group staff into teams and track recognition cards to tally the score. Regularly read comments aloud at team meetings and encourage staff members to be on the lookout for outstanding performances by their colleagues. Offer prizes for the team who receives the most recognition, the individual team member, the hotel department, or the employee who writes the most recognition cards.

Hosting a recognition competition can improve your hotel by:

  • Promoting teamwork and peer-to-peer recognition.
  • Promoting a positive employee culture.
  • Helping staff members connect with one another.
  • Encouraging hotel staff to communicate with guests.
  • Improving guest satisfaction and service scores.
  • Strengthening staff bonds and the desire to work as a team.

Each year, Hilton runs a similar brand-wide contest called “Catch Me at My Best.” Hotel team members, managers, and hotel guests are encouraged to “catch” each other at their best by filling out comment cards. Catch Me at My Best takes place from June through August, across all Hilton brands, and has for the last 25 years. Hilton created this program because they believe that “in order to provide a great guest experience, we have to recognize the individuals who make those experiences possible.”

12. Hotel scavenger hunt: 20-30 minutes

Get members of your hotel staff moving and working together with a hotel or brand-based scavenger hunt. Split hotel employees into small teams, preferably with members of different departments on the same team, to share skills and encourage cross-departmental communication . Instruct teams to solve riddles, find hidden objects, and figure out clues to complete the challenge.

By working together to solve clues and find hidden objects, hotel staff members have a unique opportunity to bond and create lasting memories with one another. In addition, mixing up day-to-day operations with fun, interactive team-building activities can help shake things up and prevent employee burnout .

13. Potluck: 60-90 minutes

Host a potluck and invite hotel staff members to bring a dish of their choice. Encourage employees to share personal favorites, family recipes, and dishes that represent their culture. Employees can mix, mingle, and bond with teammates as they try an assortment of tasty treats and discuss their individual dishes.

Potlucks are affordable team-building activities that require little planning. They can be used to help promote diversity, equity, and inclusion in the workplace.

“The shared meal is no small thing," said  Michael Pollan  in  Cooked: A Natural History of Transformation. "It is a foundation of family life, the place where our children learn the art of conversation and acquire the habits of civilization: sharing, listening, taking turns, navigating differences, arguing without offending.”

Try a team-building activity at your next hotel staff meeting!

Always consider the impact team-building activities could have on hotel staff. Respect staff boundaries ; never force employees to participate in group activities or share information that they are not comfortable with. Instead, discuss the importance of participating in team-building activities, explain the objectives for the exercise, what employees will get out of it, and encourage the team to have fun.

Building the right team all starts with finding the right team members. Up next, discover tips for hiring hotel staff and how to identify candidates with a heart for hospitality.

Don't miss out: Stay on the cutting edge of all things hospitality

Headshot of Cvent writer Kimberly Campbell

Kim Campbell

Kim is a full-time copy and content writer with many years of experience in the hospitality industry. She entered the hotel world in 2013 as a housekeeping team member and worked her way through various departments before being appointed to Director of Sales. Kim has championed numerous successful sales efforts, revenue strategies, and marketing campaigns — all of which landed her a spot on Hotel Management Magazine’s “Thirty Under 30” list.

Don’t be fooled though; she’s not all business! An avid forest forager, post-apocalyptic fiction fan, and free-sample-fiend, Kim prides herself on being well-rounded.

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Hospitality industry makes a strong comeback, but face key challenges

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Hospitality industry CFOs surveyed share that leisure travel continues to grow while business travel shows slower rebound.

  • While revenue per available room (RevPAR) recovery is exceeding expectations, labor shortages are still creating challenges for hotels.
  • The hospitality industry is adapting to meet challenges by  adjusting amenities, outsourcing more and increasing reliance on technology. 

A ccording to a survey of 20 hospitality industry CFOs, vacations dominate hotel bookings, as companies continue to pull back on business trips. However, corporate travel demand is returning as well, even if at a slower pace. 

The boom in leisure travel is consistent with the EY 2022 Hospitality Consumer Survey , which found that 89% of respondents planned to take at least one leisure trip in 2022, and 24% intended to take three or more trips for recreation. 

Hotel recovery beats expectations

The EY 2022 Hospitality CFO Survey gleaned responses from CFOs at 20 leading travel and hospitality companies. When the pandemic hit in early 2020, the entire hotel industry basically shut down. Analysts predicted it could be 2023 or even 2024 before RevPAR would return to pre-pandemic levels. However, 16 of the 20 leading CFOs surveyed believe the industry will reach that benchmark by spring 2023. Nine of those CFOs are even more optimistic, predicting a return to 2019 levels by the end of 2022. 

Business travel still lagging

The EY CFO survey revealed a deep lack of confidence in the ability of business travel to aid RevPAR recovery. While 16 out of 20 CFOs said leisure travel would be the No. 1 factor in this effort, only two cited business travel and two others indicated group travel to lead the way. When asked for specific matters that are having a negative impact on RevPAR, respondents cited recession fears, a slowing economy, geopolitical concerns, companies cutting back on discretionary spending and air travel delays. This reduction in business travel has led to large conventions either not happening or being scaled back significantly from past events. 

Seven out of 20 CFOs surveyed ranked group travel as their third biggest concern, potentially having a negative impact on RevPAR recovery. It stands to reason that as confidence grows with leisure travelers, there will also be an impact on people traveling to weddings, conventions and other group excursions.

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Long-term concerns temper industry optimism

One of the biggest issues facing hotels right now is labor shortages. Twelve of the 20 CFOs in the EY survey cited this challenge as causing the most strain on hotel net operating income (NOI). More than half of the respondents in the survey said they are adjusting amenities to customers and outsourcing various functions to try to reduce costs. Hotels are also raising pay to attract talent, with 17 out of 20 CFOs surveyed claiming they plan to do this. More than half of the respondents are also relying on technology more than before to get things done and create more efficiencies. 

While consumers confront higher average daily rates (ADRs) and even fewer amenities that now come at a price, there still seems to be a steadily growing pent-up demand for travel.

Deal market in hospitality sector remains active

On the transaction market, 13 CFOs in the survey said they expect 2022 deal activity to come out below pre-pandemic levels, and only four expect a return to pre-COVID levels. When asked to name the top three factors that would drive hotel transaction volume in 2022, 10 CFOs said interest rates would have the biggest influence on deal activity. In addition to making deals more expensive, rising interest rates could also boost pricing expectations for sellers, potentially putting deals out of reach for prospective buyers.

Hotel transaction activity is still forecasted to trend positively, and values are continuing to rebound. There is still a high level of interest in pursuing deals as the industry continues to bounce back and perform well. It’s worth noting, however, that transactions have slowed and could continue to slow in the coming months because of inflationary impacts and the rising cost of debt due to interest rate increases.

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The hotel industry has been nimble in reacting to outside pressures to get its financial performance back on track. But more challenges lie ahead, and the industry will need even more creativity to continue its recovery. The data from the CFO survey supports our findings in the consumer survey as part of our CxO survey series examining the perspective of C-level executives. The consumer survey showed that 89% of people said they were planning to take at least one trip, with 50% planning business travel.

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  • Hospitality Industry

Why do creative people become Hospitality stars?

Photography of hospitality students sitting at a table

June 14, 2021 •

5 min reading

If you’re a creative person, you might think that a career in the hospitality industry would put an end to your inspiration and ideas. It might seem like an industry of staying within the rules and limitations. Maybe you would need to save your creativity for your hobbies. But the truth is, creative minds are an asset to the hospitality industry. People with outside-the-box thinking and unique ideas are able to thrive in this industry and help their employers improve how business is done.

There are many ways creativity can come into play in the hospitality sector. Here are some ways it could help you shine.

Positive attributes of creative people

Creative people can have certain traits that make them especially valuable in hospitality careers. These  creative characteristics  include:

  • Problem-solving skills
  • Personal responsibility of tasks
  • Openness to ideas and information
  • Willingness to change and adapt
  • Openness to new duties, roles or methods
  • Interest in trying new things
  • Facing challenges and uncertainty with optimism
  • Able to question the status quo
  • Able to empathize with other people

Generally, creative people can be good at meeting the needs of a company and adjusting as those needs change. They are able to think and find solutions to problems as needed. These are just the kinds of people that are needed in positions devoted to:

  • Satisfying customers
  • Leading employees
  • Keeping hospitality businesses competitive

The importance of innovation in Hospitality

Over time, the hospitality industry has been putting  an emphasis on innovation . Industry professionals are encouraging their staff and management to be creative with everyday practices and offerings for guests. For example, Hyatt created a council that in part thinks of innovative changes that could improve guest experience. Similarly, the Lopesan Hotel Group created workshops to encourage ideas from employees. Especially when staff or management know their roles, techniques and best practices, they have some room to find creative ways to make improvements.

Thinking differently can be used in many areas of hospitality processes and practices. For example, Director of People Support at Hersha Hospitality Management, Joe Heck, said that creativity can help with  better hiring practices . He spoke of the example of high turnover in housekeeping. He and other hospitality professionals have explained that different hiring practices from normal can be helpful in areas like this. Examples include:

  • Open interviews with many applicants in quick sessions of five to seven minutes.
  • Referral programs.
  • Continuous recognition of housekeeping employees.
  • Simplifying the application process to remove roadblocks (e.g. to reach a younger demographic, it’s important to make it possible to apply via mobile phone).

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Creativity helps brands stay afloat and move forward

It’s helpful for creative people to be in workplaces that encourage innovation and ideas. Hospitality companies that are conducive to these types of people have channels of communication open for employees to share their ideas. They allow trial-and-error testing to try out new things and see how guests respond. They need to be able to bend slightly on standardization between hotels, allowing staff to create personalized, unique experiences.

Coming up with new ideas can help brands stay competitive during normal times but especially during challenging times like the recent pandemic. Innovative thinkers are needed to help hotels and other travel businesses adapt as times change.

For example, Finance Director of New World Wuhan Hotel, Janet Yan, said that COVID-19 and lockdown caused the hotel’s finance team to think about  how to bring business to the hotel  restaurants. They thought of ways to shift from their normal business and recreational trip clients to local business through consumer channels. They shifted the types of food they served and the experience to cater to a new audience and shifting consumer needs. They focused on affordable staples that could be picked up or delivered and found new ways to reach customers, including through neighborhood-based online chat groups. They researched current trends online and adapted to the situation, succeeding with their experiment.

This is simply one example of how creativity can help a hotel adapt and continue to do business, even during challenges. Thinking in new ways can lead to opportunities and help a hospitality brand adapt to the changes in society and consumer expectations.

SERVICE EXCELLENCE TOOLKIT With this 7-step process, you will have all the tools you need to master your company Customer Experience.

Creativity is valuable at all levels.

Creative traits are important for staff in all positions of the hospitality hierarchy. Staff that carry out the day-to-day processes and interact directly with customers need to adapt to changes and challenges in ways that fit the situation. Also, they are the ones who can institute ideas and practices on the ground.

Nonetheless, creativity is equally important at higher levels of hospitality management. When hotels and related businesses want to expand, change or move into new markets, they need a sense of vision and new ideas to get them where they want to go. For example, President for Greater China of Wyndham Hotel Group, Leo Liu Chenjun, believes that  creativity is important for this industry . He said, “If you’re a creative person, then you can find new angles and new ways to solve new problems.” That’s what he has done as his career has brought him in different directions, helping various companies to expand and build their brands. Unique ways of thinking has helped him with creating strategies and taking risks on new ways forward.

Sometimes, brands need to adapt to new customers and markets, so they need to think differently from what they have done before. In the case of Wyndham Hotel Group, Chenjun explained that he couldn’t bring the same hotel concept found in the United States into China, but instead needed to target hotels in this area to Chinese customers.

Catering to creatives

Putting a focus on creativity does not need to stop at the brand and its processes. Thinking outside-the-box can also extend to customers. A relatively new trend in the industry is private member club start-ups that are catering directly to “creatives,” such as writers, musicians, artists, actors and entrepreneurs. These clubs provide a space for like-minded individuals to come together. They offer specific amenities targeted to this group, including meeting spaces, workspace, private offices, libraries and event venues. Some offer sub-communities and programming for members and guests to interact with.

While this example focuses on a creative clientele, it’s not too difficult to imagine how a creative staff would connect with the target audience and develop the right experience. Sharing the artsy mindset could help staff develop the programming, events and spaces for this clientele. CEO of the research and training company the Luxury Institute, Milton Pedraza, noted that one such  creative hospitality brand , BrodyLand, was able to stand out against competition through a mixture of creativity, authenticity and celebrity guests.

Combine best practices with innovation

You can see from these examples that creative thinking is valuable in all aspects of the hospitality industry. It is helpful within everyday processes and in broader plans and strategies. Creative traits are useful at all staff levels and in different workplaces. Hospitality brands can be rewarded when they allow their staff to share ideas and adapt to situations, and they benefit from thinking innovatively on a broader scale. For these reasons, creative people can shine within these roles.

It’s a good idea to put these skills and personality traits on a hospitality resume and for hiring managers to look for them. However, thinking outside the box is most effective when you understand the box. In other words, a strong  education in hospitality  can give you an understanding of the industry and best practices. Then, you will know when to stick to tradition and when to get creative.

Ana McFee

Business Development Senior Manager - Consultant at EHL

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Decision-Making and Problem-Solving Techniques in Hospitality

Introduction, works cited.

The hospitality and tourism industry is influenced by environmental changes and new customer demands. In order to meet these challenges, hospitality and tourism operators introduce effective methods and techniques of decision-making and problem-solving. The management process has always made a distinction between vertical and horizontal relationships. Under the earlier traditional approach, vertical relationships were subject to the command authority of the managers at each level. In most respects, the management process reflected military organizational principles. Horizontal relationships, mandated by the organizational structure, were defined on the basis of staffing and other bargaining interfaces and dialogues for the development of consensus (Salaman 52). What has changed is the vertical process. The command authority of the manager now has to defer to a consensus-based relationship with subordinates reflected in such concepts as participative management, collective decision making, and authority acceptance. The aim of the paper is to analyze and evaluate key operational functions of the hospitality industry, assess hospitality and business performance, explore performance improvements techniques and examine the factors affecting problem-solving. The paper will be based on cognitive mapping methodology.

In the hospitality industry, the original distinction between vertical and horizontal relationships produced a hybrid system with the vertical relationships based on command and the horizontal on consensus development. The term “management by bargain” reflected the negotiation reality of the dialogues for the resolution of issues between interdependent horizontal elements. In the case of vertical relationships, bargaining was viewed as an exercise in leadership (i.e., the substitution of bargaining for command authority) (Salaman 48). The downgrading of the use of command in the vertical chain in favor of a more consensus-oriented approach has increased the scope of bargaining by erasing the former distinction between vertical and horizontal relationships. For example, managers can no longer command compliant behavior, authority acceptance, or commitment to the organizational interest of their subordinates. They must bargain for it. Despite the resulting increase in internal bargaining, however, the system remains hybrid in that the organization itself continues to operate by command from the executive suite down the managerial chain of command. Symbolic of the command glue that holds the entire organization together is the pervasiveness and authority of organizational culture, codes of ethics, and other normative policies of the organization (Chase and Jacobs 34).

The changing nature of the hospitality industry demands that the vertical interface between managerial levels tends to be command-oriented at higher levels, with greater emphasis on consensus development at the lower levels. The crunch comes at the first-line managerial level where command authority is to give way to participative management, collective decision making, and other forms of authority acceptance. The operational effect is that the first-line manager has to implement by bargaining the instructions he has received from the command channel of supervisory managers. This is not a simple, mechanical extension of management bargaining to the leading function. Managers need more operational guidance to handle the crunch than the conventional horse-trading and deal cutting involved in consensus development in horizontal relationships. One would expect to find the answer in the considerable emphasis in the literature on the importance of motivation in influencing subordinates’ behavior (Salaman 68). The problem is that motivation, the closest one that comes to an operational approach in the management process, has not progressed beyond the theory stage. The best that one can say is that the approach to motivating the “employee” is still quite theoretical with a variety of competing theories relating to the identification of the factors involved in motivation (i.e., the content approach) and the most effective way to motivate (i.e., the process approach). There is no single motivation theory or process. The negotiation process’s concern for continuing relationships is an important element in friendly persuasion, the preferred basis for consensus. A good workplace relationship softens the impact of pressured persuasion when friendly persuasion does not produce the desired consensus. The pressuring possibility permits negotiation to go beyond friendly persuasion and function as a system for controlling situations and relationships. As a control system, negotiation can be a most useful tool of consensus development because of the premium it places on the maintenance of a good workplace relationship. The management process also stresses the use of relationship nurturing and maintenance to influence desired behavior (Chase and Jacobs 34).

Hospitality and tourist operators try to optimize capacity and productivity outputs through effective decision-making techniques. The dialogues of management can, through friendly persuasion (based on personalization and other relationship nurturing) or pressured persuasion, be used to influence desired action or inaction. Concurrence or consensus in the management process can be reflected in express agreements or arrangements, or implied from acquiescence or other supportive or compliant behavior. The same is true for negotiation: there need not be a formal dialogue or a formal conclusion of the dialogue. Actions speak as loudly as words. Accordingly, it is no great stretch to treat action or behavior in support of a manager’s policy or request as the consensus result of the manager’s bargaining effort to influence or motivate the behavior of his subordinates. The absence of a formal dialogue does not change the basic nature of the bargaining process which produces compliant behavior. The management and negotiation processes have much more in common. Both involve the pursuit of interest: the former, the organizational interest; the latter, the desired interest in a particular situation or relationship.

Slack’s five performance objectives are speed, dependability, quality, flexibility, and cost. For hospitality and tourism operators, speed is one of the main factors that affected all operations. Furthermore, both processes are consensus-oriented and usually result in the conclusion of a transaction; the settlement of controversy; or the establishment of a position, policy, or arrangement (Slack et al 22). In the management context, the conclusion of a transaction can be with an outside organization (e.g., traditional negotiations with a labor union, a supplier, or a purchaser); the settlement of controversy can involve intervention in the dialogues of organizational elements competing for material resources, personnel, or mission assignments; and the establishment of a position, policy, or arrangement can be the result of organizational dialogues related to the substantive content of organizational policies, culture, and codes of ethics and conduct. In both the management and negotiation processes, the usual purpose of bargaining is to define or control situations and relationships. Flexibility leads to a competitive position and high quality of all services delivered to a customer. It helps operators adapt to changing circumstances quickly, without disrupting the rest of the operation. Relationship control is also an important bargaining technique. Quality and cost influence customers’ decisions to purchase and use services. As decisions are made about who should participate on the planning team, individual time frames should be considered. Individuals vary radically in terms of the time periods they can think out, organize, and work through. It is taxing to some people to determine what they have to do today, and in what order (Teale 24). Dependability means that tourism operators have to meet the demands and changing preferences of potential customers. Environmental factors have meaning for an organization relative only to its actual and potential resources. It is essential that an organization’s self-knowledge be based on a thorough inventory of its strengths and shortcomings before shaping its strategies (Chase and Jacobs 76).

Performance improvement techniques can involve low price and high quality, fast delivery and excellent services, innovative approaches to business, and new tourism destinations. Contentious improvements will help any operator to save costs and deliver high-quality services for diverse customers audiences. Incremental innovation allows us to understand that marketing and the consumption process require a perspective of current purchases for future use (Teale 34). A time discrepancy usually exists between the actual purchase of items and acts of consumption, and the lag has significant marketing implications. In particular, it stresses the importance of many postpurchase marketing activities in cultivating and building demand. Advertising, for example, is often directed to those who have already bought a product and is designed to assure them they made the right selection (Teale 64). The resource audit helps an organization understand its service techniques and processes, how it is financed, and who its managers are. The latter point may be less often considered, but it is crucial. An organization populated with long-tenured, solid, and dependable “technical types” may want to think twice before embarking on a highly innovative entrepreneurial venture requiring creativity and flexibility. An opportunity to provide a new service may not really be an opportunity for an organization unable to finance the initial capital investment required. The opportunities, therefore, should be close to the current service delivery capability of the organization (Chase and Jacobs 82).

Decision-making techniques involve decision trees and Pareto analysis, cost-benefit analysis, and force field analysis (change analysis). The organizational interest is served by the foregoing approach because it benefits from the decision maker’s personal interest and effort in controlling each supporting dialogue. In effect, the decision-maker addresses and works out the concerns of the interested parties in each of the component dialogues as part of the decision-making process. The usual result is a rational decision acceptable to all the interests involved. At the present time, the managerial playing field is not level (Teale 124). Those managers who treat their dialogue involvements as bargaining can be expected to prevail in their resolution. The dialogues of those who don’t, tend to be unsuccessful mismatches that do not serve the organizational interest (Harris 28). That interest is best served by complete, problem-solving dialogues and resolution on the merits without the skewed results produced by a difference in negotiating skills and techniques. The institutionalization of effective negotiation as a managerial skill coupled with the recognition that the staffing interface is essentially bargaining should go a long way toward leveling the playing field. At the very least, it should alert all involved that personal interest may not be pursued in the name of the organization (Hage 597).

The main problem is that neither of the decision-making approaches reflects real-world situations and change. All of them propose hypothetical problem-solving methods based on predictions and forecasts. From the operational point of view, the monitoring and control by supervisory managers can be most effective when it focuses on the staff input and advocacy of elements potentially affected by organizational policy or action (Fitzsimmons and Fitzsimmons 55). The performance of these elements should be closely monitored to assure the quality of their inputs and the appropriateness of their advocacy. Good decision-making depends on responsive and complete staff support, and managers at all levels must control the quality of this support. A distorted picture of the issues and the costs and benefits involved in a proposed policy or action, prompted by a desire to influence the decision for career or other personal interests, does not serve the organizational interest. Breakdown of supervisory control at this point should carry serious consequences for those who fail to perform their duty to the organization (Harris 28). Again, the control process cannot eliminate informal lobbying and other forms of politicking to influence senior-level decision-makers to protect career and parochial interests. Nevertheless, such politicking should be reported to higher levels of management in an effort to preserve the integrity of the organizational process. Reporting (e.g., to the organizational ombudsman) should be mandated because the knowledge that such activities are being reported may inhibit politicking within the organization. Furthermore, the organizational code of ethics should treat commitment to the organizational interest as an ethical issue because it is implied in the employer-employee relationship. No matter how carefully that commitment is codified, the organization still has to bargain for it. Those supervisory managers who monitor the action officer’s performance assure that the dialogue he conducts and the consensus he proposes is in the organizational interest (Fitzsimmons and Fitzsimmons 82).

Problem-solving can be explained as a high-order process that involves cognitive and thinking skills. In the hospitality and tourist industry, successful marketing requires recognition and authority at the top decision-making level. Marketing programs must be carefully planned and based not merely on knowledge of internal corporate affairs, but also on knowledge of external environments. A homeostatic point of equilibrium between customer wants and needs is called for on the one hand and corporate goals and resources on the other. Business organizations in the future are more likely to make fundamental and continuous corporate adjustments to the demands of shifting market environments. To date, relatively few have truly adopted a market orientation, despite the lip service that has been paid to marketing as an orientation in business (Fitzsimmons and Fitzsimmons 42). Such factors as continued economic growth, increased disposable income, vigorous domestic and foreign competition, accelerating technology, automation, population decentralization, expansion, and innovation will spur the appearance of this new marketing form.

Hard problem solving can be explained as a heavy critical thinking method. The quantitative concepts and techniques known as operations research have led to better intelligence and decision-making in marketing. Through them, problem-solving in marketing has become more scientific (Hicks 62). Operations research provides marketing executives with quantitative bases for making decisions concerning the operations under their control. It improves the ability of marketing executives to perceive and manage present and future situations. Operations research is not merely a set of tools or techniques; it is an approach to problem-solving. Its contributions stem from the adoption of a systems perspective, the development of various models useful for predictive purposes, the emphasis on experimentation, and improved operational information. Operations research is the use of scientific personnel in the solution of new problems, problems that may be quite unrelated to their original discipline. It includes techniques suggested by such terms as Markov processes, waiting-line theory, linear programming, game theory, simulation, decision trees, and pay-off matrices. Cloaked in technical language, it has been fostered by available technology, especially large-scale computers. Operations research reflects two striking differences in the approach to obtaining marketing intelligence: the tools used, and the viewpoint and perspective adopted. Mathematical models and statistical techniques are part of the normal equipment of the operations researcher. He has a strong predilection for generating intelligence and solving problems by means of mathematical applications. He uses tools that are standard to most scientists in solving business problems.

Hard methodologies are based on mathematical models and precise objectives (Hicks 72). Marketing intelligence is the basis of effective and logical marketing decisions. Marketing intelligence comprises internal, environmental, position, projected, and decision intelligence. They differ in scope, nature, and purpose. Marketing intelligence also differs from data. The database, which includes opinions, attitudes, and judgments, as well as facts, must be analyzed and collated to generate information from which marketing intelligence can be gleaned. Marketing intelligence results when data are transformed into realistic policies and decisions. Computers play a significant role in developing and extending marketing intelligence systems (Hicks 92). They provide relevant and timely data, thereby extending powers of analysis and providing the basis for simulations. The functional area directly responsible for developing marketing intelligence systems is marketing research. Both marketing research and operations research provides the basic qualitative and quantitative research inputs for marketing intelligence systems.

Recent developments in applying quantitative techniques, particularly the concepts of decision theory, are having a great impact on marketing management. Marketing decisions are made to solve problems — to overcome barriers and capitalize on unsatisfied opportunities. Decision-making starts with the difficult task of defining problems — problems of fact or problems of value. The latter is usually the most difficult to handle. They fall into the category of normative decision theory. Once problems are defined, alternative strategies must be developed and evaluated before decision criteria can be applied logically (Jeynes 62). Decision-making under conditions of complete certainty and complete uncertainty form the anchor points of the decision spectrum. Marketing decisions are usually made under conditions of risk. Several useful decision criteria are noted, including expected value, minimax, optimism, and regret. The role of models, particularly quantitative models, in reaching marketing decisions is discussed. Both of the basic model building processes-model building by abstraction and by realization — are analyzed. This is followed by a brief discussion of the use of computers by marketing management. Where products are relatively homogeneous; several large firms constitute a significant part of the market, and buyers are well informed, then estimates of buyer reaction become a significant aspect of the pricing picture. So do competitive reactions that may be ferreted out by the use of marketing intelligence. Studies of what competitors have done in the past, coupled with detailed analyses of the current competitive situation, may furnish guides on what they are likely to do (Jeynes 92).

Deterministic models refer to events that have no random or probabilistic aspects but proceed in a fixed predictable fashion. Stochastic models involve random or probabilistic directions. The use of operations-research tools and techniques flows from the desire of marketing executives to obtain more adequate intelligence regarding the relevancy of objectives, determining alternative strategies, making decisions, and measuring and controlling results. This generation of quantitative intelligence leads to more rational marketing policies and programs. Similarly, various probabilistic models have been used to increase the effectiveness of advertising expenditures and establish brand policies. Simulation models have been applied to problems of marketing policy (Jeynes 88). It is true that to some extent critical marketing problems appear to be mathematically intractable. They lie somewhere between the problems of applied engineering and those of the behavioral sciences. Most marketing executives, however, do not understand operations research techniques. As a result, two opposing reactions occur. On the one hand, there appears to be a tendency to treat operations research with a halo effect. On the other hand, there is suspicion and a negative reaction. The latter often leads to outright rejection of the idea that marketing activities can be quantified. Many marketing executives have strong reservations about operations research, feeling that it is an expensive luxury that only large firms can afford; that the intelligence generated is based on data that businesses usually do not have readily available; that operations research cannot be used unless adequate records are kept; and that the underlying assumptions and restrictions made by operations-research people seriously limit the usefulness of its information in decision making. Some executives feel that good judgment, experience, and common sense form the core of marketing intelligence and that there is no need to complicate the matter with mathematical tools. But such a perspective is harmful. Properly applied operations research can furnish valuable information (Johnston 92).

Operations research has had a favorable influence on marketing management and has demonstrated that under conditions of uncertainty, decisions can be subjected to systematic, rigorous analysis. This permits complex marketing problems to be attacked in a scientific manner. Through specific models, intelligence may be acquired to help solve marketing problems. In particular, transportation, warehousing, inventory, and advertising problems have been solved by these techniques. Moreover, by extending the methods through which information may be gained, and by using simulation techniques, operations research has provided methods for evaluating policies before they are applied. Marketing management may thus make better decisions and quantify dimensions of problems that previously could not be quantified. However, despite its models and quantitative tools, operations research cannot replace the judgment of marketing managers as decision-makers. They alone must bear the full responsibility and authority for decision-making. All that operations research can do is to provide more pertinent and adequate quantitative information (Johnston 36).

The relationship between subordinate and supervisory managers is tilted toward the supervisor because he periodically evaluates the performance of his subordinate, controls task assignments, and judges whether he should receive awards or other recognition. This feature of organizational life gives the supervisor leverage over the subordinate who cannot afford to forget that his career depends on how well he (1) gets along with his supervisor and (2) impresses him with his performance. This is an effective remnant of the authoritarian-manager concept which frequently manifests itself in the subordinate’s general deference to, and support of, the supervisor. It also inhibits subordinate support of positions that the supervisor opposes. While, in some instances, this may result in the organization not getting the benefit of the subordinate’s innovative thinking, the result is generally positive because it contributes to the supervisor’s successful fulfillment of the leading and controlling functions. They rely on societal changes and generally on the introduction of new legislation or collective bargaining contracts to increase the say of employees at lower levels (or their representatives as it were) in organizational decision making. As such they are gigantic real-life experiments in the wholesale promotion of externally induced organizational change because they stipulate new organizational structures and processes. Hence they will affect also any traditional notion of leadership and management (Chase and Jacobs 85).

Marketing decisions are usually made under conditions of considerable risk, and it is impossible for an executive to be sure that any specific decision will turn out to be the best one. All the decision-maker can hope to do is obtain information to restrict the elements of indecision in a situation. Managers are forced to accept risks; they must gamble. Marketing executives are placed in the uncomfortable situation of having to choose the best course of action by evaluating relevant factors on the basis of imperfect information at a specific point in time. They know that the decision may eventually prove to be a poor one. The “right” decision consists of choosing the best possible course at a particular time regardless of how the results may be evaluated in the future. Given perfect information, there would be no need for evaluations or judgment. Wrong decisions would result only from mistakes. But perfect information is not available, and the difficulties and rewards of decision making stem partly from the inadequacy of information. For instance, it is difficult to predict what competitors will do in the face of various strategies, and their actions greatly influence decision outcomes. Confronted with the problem of balancing the acceptance of estimated risk with estimated payoffs, marketing executives must decide whether to take additional risks and to what extent the risks will enhance profits. Extreme decision situations are relatively easy to handle. For example, if a company is strapped for money, and if a wrong investment decision may threaten its very existence, then the criterion of least risk may be adopted. Regardless of expectations of profit inherent in other choices, the decision-maker elects that alternative with the least risk or the greatest chance of success. Conversely, in situations where relative costs or losses will have little impact on a company, the executive may choose to “go for broke.” Several criteria are useful in helping executives to balance risk and payoffs and to choose strategies in less obvious instances. Others tend to a policy of followership — innovative imitation. They are neither in a position nor choose to risk the resources on the development of new ideas and new market segments (Chase and Jacobs 35).

The operational checklist of effective negotiation stresses the importance of viability and concern for continuing relationships in pursuing organizational goals. The organization’s continuing relationship with the public, the media, and other scrutinizing audiences pressure it to behave ethically. Experience has shown that the organization needs protection from both immoral and amoral managers. The organization has to rely on the ethical commitment of managers to serve its interests, including protection from unethical behavior which may be imputed to it and for which it may be held accountable (Naylor 43). Unethical behavior is no longer a viable option for the organization–only moral management makes sense. The operational checklist of effective negotiation stresses the importance of viability and concern for continuing relationships in pursuing organizational goals. The organization’s continuing relationship with the public, the media, and other scrutinizing audiences pressure it to behave ethically. Experience has shown that the organization needs protection from both immoral and amoral managers. The organization has to rely on the ethical commitment of managers to serve its interests, including protection from unethical behavior which may be imputed to it and for which it may be held accountable. Unethical behavior is no longer a viable option for the organization–only moral management makes sense (Chase and Jacobs 35).

Although managers cannot be trained to be ethical because there is no general consensus concerning what constitutes the proper ethical standard for organizational behavior, it does not mean that certain generally accepted principles cannot be included in codes of conduct or organizational credos to remind managers of their moral responsibility to the organization. The organization can provide both. It can mandate training in the effective negotiation system and the use of the system as the operational adjunct to the management process. Operations outside the organization have also expanded because improved competitiveness demands rational cooperative activities with other organizations (e.g., more cost-effective sourcing of products and services) (Salaman 88). The result for the organization is that bargaining is truly everywhere. The truism that organizational effectiveness depends on the quality of its managers suggests that the organizational need is for motivated bargaining managers, empowered by the leverage of the effective negotiation system to serve the interests of the organization better (Naylor 13).

In sum, there are many situations in which each tourist-consumer choice does not involve a new decision process but becomes rather habitual. Reliance on habit is especially evident in many purchases of convenience products. Here the expectations are based on past experience and learning and circumvent the decision process. However, in situations involving important decisions, where there is less experience available, buyers will go through a more intensive process of information gathering and decision making. Where incentives are strong enough and the expectations are high or great, the buyer does not act habitually and is willing to put some effort into solving his consumption problems.

Chase R.B., Jacobs R.F. Operations Management for Competitive Advantage with Student-CD, Hill/Irwin; 10 and, 2003.

Harris N. Service Operations Management , Cassell, 1989.

Fitzsimmons, J. & Fitzsimmons, M. Service management: operations, strategy, information technology. 4th Edition, McGraw-Hill, Irwin, Europe, 2004.

Hage, J.T. Organizational Innovation and Organizational Change. Annual Review of Sociology . 1999, p. 597.

Hicks, M. J. Problem Solving and decision making: hard, soft and creative approaches. 2nd Edition, Thomson, London, UK, 2004.

Jeynes, J. Risk Management: 10 Principles. Butterworth Heinemann, Oxford, UK, 2002.

Johnston R. Cases in Operations Management , 3rd Edition Pearson Education Limited, 2003.

Naylor J. Introduction to Operations Management , 2nd Edition Pearson Education, 2002.

Salaman, G. Decision making for Business. Sage, London, UK, 2002.

Slack, N. et al. Operations and Process Management: principles and practice for strategic impact. Pearson Publishing, London, UK, 2006.

Teale, M. Management Decision Making. Financial Times Prentice Hall, London, UK, 2003.

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