In the contemporary scenario, the tourism and hospitality sector has gained enormous market progress. The ever-growing market of the following segment is potentially dependent on various factors as it is relatively associated with consumer relationships and management. The foremost factor influencing external is the degree of competition faced by the tourism and hospitality market. As the following industry is swiftly evolving, the rate of competition is also mounting at a rapid rate. Therefore, the external influence of the fierce competition faced from other business ventures plays a crucial role in tourism and hospitality manager (Wang, Chen, and Chen, 2012).
Besides, some social aspects also persuade this sector externally. The target customer, communities and their perception play an imperative role in deciding the business ventures of tourism and hospitality manager. Affirmative involvement and belief from the customer’s part can potentially facilitate the overall development and apposite execution of the proposed strategies. Even more, the national economic consideration plays a significant role in tourism and hospitality sector. Tax regulations, government spending, inflation rate, currency exchange rates, general demand, interest rates and other economic relations are perceived as prospective factors, which decide the financial layout of modern tourism and hospitality management (Lundberg, Gudmundson and Andersson, 2009).
Tourism and hospitality management is a potential sector in the modern-day world due to diverse business opportunities and rapidly growing market values possessed by it. The central orientation of this business is aligned to provide service and assistance to customers. As business never functions in a vacuum, the proposed industry has a significant influence on various factors, which are internal as well as external. Most importantly, the political influence of the area in which the business is operational plays a crucial role in determining the policies. Subsidy deliberation and taxation on tourism relatively comes under the political forum (Christensen Hughes and Rog, 2008).
In addition to this, technological influence is also momentous for tourism and hospitality management. Incorporation of advanced technology in the operational process could help the organization in providing better services to the customers. Furthermore, it will also facilitate customer relationship management and customer satisfaction. Besides, ethical contemplation, which analyzes business ventures on an ethical basis, justifies its influence on tourism and hospitality management. In addition to this, legal practices and regulations is also a potential external factor contributing to this industry. Moving to different locations with diverse culture makes it necessary to understand the legal guidelines (Law, Buhalis and Cobanoglu, 2014).
Christensen Hughes, J. and Rog, E., 2008. Talent management: A strategy for improving employee recruitment, retention and engagement within hospitality organizations. International Journal of Contemporary Hospitality Management, 20(7), pp.743-757.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication technologies in hospitality and tourism. International Journal of Contemporary Hospitality Management, 26(5), pp.727-750.
Lundberg, C., Gudmundson, A. and Andersson, T.D., 2009. Herzberg’s Two-Factor Theory of work motivation tested empirically on seasonal workers in hospitality and tourism. Tourism management, 30(6), pp.890-899.
Wang, C.H., Chen, K.Y. and Chen, S.C., 2012. Total quality management, market orientation and hotel performance: The moderating effects of external environmental factors. International Journal of Hospitality Management, 31(1), pp.119-129.