Kerrie_Bear said:
Does anyone know what the internal and external factors that influence the hospitality industry are???
Thanx peoples! Good luck studying!!!
Internal factors....
are those that are within the control of the enterprise, ie pricing, staffing, marketing and choice of menu items.These are all controlled by the establishment.
External factors....
are beyond the control of the enterprise...including
-industry regulations-
legislations egliquor and gaming controls etc
-economic climate-
when people are on a budget they have to be cautiousin relation to where they spend their money.On the other hand when the eco. climate is is good, people have more money to spend on luxury items such as restuarant meals or trips awayfrom home. This affects the services and facilities that are offered in the hospitality and tourism industries.
in other words when the economy is good, that is people have money, they are more likely to go on holiday and eat out at restuarants etc but when the economy is bad , people hav less money , they arent about to go spend money they dont have.
It also has a lot to do with the exchange rate.
-seasonal conditions-
this doesnt only refer to the seasons of the year but also other events or activities throughout the year.eg.school/public holidays
-environmental issues-
increased numbers of visitors to an area can cause damage to the natural enviro. as well as increased levels of pollution, while building work may overtake the natural landscape and create visual pollution.
-market needs and expectations-
wants and needs of customers change-it is this that then influences the facilities ad services establishments provide. changes include
-regular short breaks-ppl are taking shorter breaks to relax-making shorter
holiday packs more popular
-inbound tourists-the more tourists arriving in aus from a wide diversity of
backgrounds, there is a gretaer need for cultural awareness and sensitivity
in the tourism and hospo industries.
-service preferences-
closely linked to market needs and expectations, also relates to how the service and facilities will be provided.All establishments promote their facilities and services according to the preference and needs of their customers. Customers have a choice as to where they will take their business.eg.a customer wishing to purchase a fast-food meal based on chickencan choose from a variety of outlets, however it is the style , cost , taste, nutritional value as well as other factors that ensure that not all customers will pick the same outlet for their purchase. If customers choose a particular facility or service the business will succeed, whle unpopular outleys will have to cut staff or close entirely.
I hope that helps in some way, let me know if there is anything wrong or if you need more help!
I got my notes from the excel book.