Impacts of Globalization in the Hospitality Industry

2050 Words9 Pages
Globalization drivers The competitiveness of the international hospitality industry in the context of globalization is impacted by different factors. One of these factors includes the globalization drivers, which are mainly, cost, market, government, and competitive drivers. Market drivers for globalization are very much based on common customer need, and are also based on global market channels and global customers (University of Kentucky, n.d). The strength of market drivers are evaluated from a range of multi domestic sectors to the global market. For example, the market for specific foods or cuisines would likely find greater success in the local or domestic setting; however, the market for automobiles, computers, and hotels, fast food chains can be high on the global scale (University of Kentucky, n.d). Cost drivers are also drivers for globalization and include elements which relate to global-sized economies, including source efficiencies, production differences, high production development costs, as well as rapidly shifting technologies (Jager, 2009). The Science Initiative Group Institute for Advanced Study (2007) discusses that globalization is driven by cost which is largely based on the economic conditions of organizations. The persistent pressures on the “economies of scale, advances in technology, and increasing cost of product development are factors that are relevant in this grouping” (Summers, 2005, p. 284). The emergence of innovations adapted by those involved in the hospitality industry determines the costs incurred, and thereby impacts significantly on the call for globalization. In this case, advances in the manner of doing business, including internet availability and advertisements impact on trade ... ... middle of paper ... Learning. Science Initiative Group Institute for Advanced Study, 2007, Globalization: Trends and Prospects, Available from: Tipurić, D. 2002, Strategic alliances in Croatian tourism industry – new opportunities and challenges, Global tourism and entrepreneurship in the CEI region, ed. J. Vadnjal, A. Szabo, I. Pecher, H. Hadszuh, Radenci: 4th Small Business Development centre international conference. University of Kentucky, (n.d), Industry Globalization, Available from: Wahab, S. & Cooper, C. 2001, Tourism in the Age of Globalisation, London: Routledge. Yip, G.S., 2003, Total Global Strategy II, New Jersey; Prentice-Hall. Whitla, P., Walters, P., Davies, H. 2007, Global strategies in the international hotel industry, Hospitality Management, vol. 26, pp. 777–792.
Open Document