2.01-Understand the impact of the hospitality and tourism destinations on an economy.

Economic Conditions Many hospitality businesses rise and fall with the economy During a recession or contraction, when the economy slows down, the hospitality industry is one of the first to suffer During an expansion, the economy grows and does well, but hospitality is one of the last industries to benefit

Globalization Economic problems in one country can affect others around the world Transnational corporations have offices in countries around the world Tourism facilities are being developed nationally and internationally

Trends for the Future Four trends affecting businesses are demographic trends social trends lifestyle trends technology trends Hospitality professionals stay informed about trends so that they can better serve their customers’ needs and wants

Demographic Trends Demographics is the study of a population’s characteristics, such as age, income, or ethnic origin Two demographic trends that affect the hospitality industry: more retirees more young people traveling in small groups

Social Trends A social trend is a change in the structure or beliefs of a society Two social trends that affect the hospitality industry: changes in family structure acceptance of gaming

Lifestyle Trends A lifestyle trend is a change in the way people live their lives Three lifestyle trends that affect the hospitality industry: concern for health impulse buying desire to learn and have new experiences

Technology Trends Two technology trends that affect the hospitality industry: customers’ use of the Internet and mobile computing to obtain information and make reservations businesses’ use of software to manage information about guests, employees, and finances

Infrastructure Tourism helps build infrastructure Tourists add money to a TDA by buying lodging, food, and other goods and services Tourists benefit their home economy by buying transportation and other goods and services

National Tourism Marketing National tourism offices work to attract international tourists to their country The amount of money spent in a destination is influenced by the location of the travelers’ country of origin The U.S. Travel Association (USTA) promotes travel to and within the United States with marketing campaigns such as Brand USA

Inbound/Outbound Inbound Arriving (such as passengers), or coming in (such as a flow). Return leg of a journey Outbound Leaving (such as passengers), or going out (such as a flow). Departing leg of a journey

Transient Staying only a short time, not permanently Guest at a hotel are “transient”