1. 2.01-Understand the impact of the hospitality and tourism destinations on an economy.

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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