The impact of business environment on hospitality industry of Westin Assignment

The impact of business environment on hospitality industry of Westin Grand Hotel situated in Munich of Germany - Assignment Example This paper illustrates that hospitality industry is a very significant constituent of the service sector and is a vital element for a country’s national economy. The hospitality industry is frequently defined as an unseen export because it does not usually include tangible delivery of goods, rather than movement of people. Tourists come into hotels from numerous places of world in order to obtain service and experience generosity. Hospitality industry is categorised by place bound industry, where the individuals and the visitors obtain goods and services in the same place. Therefore, hospitality industry confronts with numerous challenges in the business environment. Factors such as flexible income, vacation time and travel enthusiasm of people among others can determine the success and development of hospitality industry. Tourists travel for several purposes. The travel drives of tourist impact the approach of travelling and selecting the destinations. Pleasure travellers sea rch for cultural and entertaining enjoyment, while business travellers conduct business or join in international conferences in foreign countries through travel. There are several business environmental factors which can impact on the travellers’ decision to fly in a certain country, thus can impact on the hospitality industry’s profitability and performance. The recent financial crisis had impacted on global hospitality industry. In the year 2011, as the demand for travel increased, the hospitality industry had restored. ... It is expected that the business environment will develop in upcoming years. Luxury and full service hotels are recovering rapidly because of reappearance of business tourists, mostly in urban markets (Ernst & Young, 2011). Travel is one of the significant habits of people’s life in Germany. For tourists, Germany is considered as a place with one of the most developed infrastructures in terms of hospitality business, and it has good cultural resources along with environmental stability. Therefore, the hospitality system in Germany provides supreme travelling experience for national as well as international guests. In present days, the customers seek for convenience while selecting any hotel, such as environment, hotel background and service style among others. Customers, make their decisions about choosing hotels on the basis of affordability, dependability, impressiveness and specialty. As a consequence, hotels competing on low-cost, brand name, enterprise and exceptional ser vices can succeed in the hospitality industry of Germany. In the year 2008, the hospitality industry generated revenue of almost 55.5 billion Euros. In comparison with other countries the average rate of hotels in Germany was much competitive (Germen Business Portal, 2008). The recent economic crisis had affected the hotel industry in Germany. In the year 2009, total number of overnight spending had reduced by 0.1% to 0.2%. In comparison with industrial hospitality performance at that period of time, the performance of German hotels was much better. Due to economic recession in the year 2009, the cost of hotels in Germany had also decreased, but in 2010, the room rates had raised by 2%. With respect to hotel room rate, Germany ranked as 14 among top 22 significant tourism