Key developments for the future towards 2020

3 August, 2015
  • 3 min read

There are a number of environmental developments that reveal forces driving change in the future: new markets, growing global middle class, a shift of economic power to the East, virtual connectivity leading to a global knowledge society, demographic changes, changed suppliers of labour, generational differences, the need for social skills and physical interaction, improving mobility, the scarcity of natural resources, climate change, increased expectations in terms of sustainability, and the all influencing, increasing speed of change. These forces are expected to have the following effect on the international hospitality industry:

1. New Workers
Globally mobile, with different expectations of their employer and working conditions, aware of the need for life-long learning.

2. New Management
Less service process, more human capital-oriented, capable of leading a diverse and frequently changing workforce of individuals to cater to the needs of every single customer.

3. New Customers
Informed and savvy, part of a community, demanding personalised products and services, valuing experiences over their single components.

4. New Technology
Affecting the whole field of hospitality management, technology will drive business innovation and competition, for example electronic distribution channels, e-Intermediaries, e-procurement in supply chain management, revenue management, relationship development and retention (e.g. CRM), social communication on the Internet (e.g. consumer generated media), self-service/mobile/wireless technologies (e.g. biometric applications), electronic governance, technology and law (information privacy, brand protection), business systems and intelligence, new product development (e.g. interior design).

5. New Competition
Partnerships are believed to become fundamental to industry growth, survival and capturing market share. 6. New Geographical Playing Fields Formerly “remote” continents (South-East Asia, Africa, South America) providing of skilled and unskilled labour, (middle class) customers, new business and leisure locations. For hospitality management education and its stakeholders, the following changes are considered important: 7. New Students Impatient, less docile, more career aware, less appreciative of knowledge than of understanding, willing to “shop” for education so as to personalise their education, constant access to information, overloaded with information, constantly multitasking and techsavvy.

8. New Competition
Institutions that were previously of less reputation (but will be more quickly to adapt) may become more serious competitors or even surpass established names. Moreover, new competition can be expected from institutions in previously less developed geographical regions. Global ranking, classification and factual competitive benchmarking are likely to have a significant impact on hotel school demand, previously driven by word-of-mouth and historical reputation.

9. New Emergent Skills
Forces driving industry change will continue to affect at an increasing speed the new graduate competences that are demanded. Attitude and behaviour will be vital to lead hospitality change. However, to understand change new business knowledge will be required (e.g. in the field of technology and channel management). Also, entre-/intrapreneurial skills will be important. 9. New Funding Funding of HE as it has been in the past will no longer remain the same. In some regions more funding will go to HE, while others will fund less. Government funding is globally expected to decrease, with various effects for institutions of hospitality management education. Schools that are not market-oriented will suffer.

10. New education and knowledge management
Personalised education through virtually accessible knowledge centres will become the norm, and students will pose emphasis on techniques and soft skills in contact with educators, with co-creation as a vehicle to enable faster knowledge creation and transmission.

11. New educator
Teaching will become a more demanding job, with a need to be a specialist staying on top of the latest industry developments, providing more value to high potential students, but with more emphasis on team work, ownership, and rapidly changing technology.

About the author

Jean-Pierre van der Rest

Jean-Pierre van der Rest is Associate Professor of Business Administration in the Department of Business Studies, Institute of Tax Law and Economics, Leiden Law School at Leiden University. He previously served as a Professor of Strategic Pricing & Revenue Management, Head of Department, Director for the Research Centre, and Associate Dean (Education) at Hotelschool The Hague, Hospitality Business School. Dr Van der Rest received a PhD in Business (Oxford Brookes), a MA in Managerial Economics (Durham), and a BBA in Hotel Administration (Maastricht). His research covers pricing, forecasting and business rescue. Dr Van der Rest is Associate Editor for the Cornell Hospitality Quarterly and for the International Journal of Revenue Management, and serves on ten international editorial boards. Recipient of research grants and awards, his work is published in leading scholarly books and international journals such as European Journal of Operational Research, Journal of Strategic Marketing, Service Science, Tourism Management, and International Journal of Hospitality Management. Dr Van der Rest has taught in Bachelor, Master, MBA, and Executive Education programmes. He has chaired accreditations and has been an external examiner, external advisor, and a visiting professor at various international business schools.

 

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