The Micro and Macro Environment of the Tourism and Hospitality Industry

The Impact of Macro and Microenvironments in the Hospitality Industry

The hospitality industry is usually affected by environmental scanning known as the macro and microenvironments. The general scope of these ecological scanning has been known to affect the hospitality industry in several ways (Truswell, 2015). For instance, when an analysis is done, the microenvironments impact the marketing campaigns of tourism, and hotels especially when it comes to decisions based on marketing. When considering these factors both micro and macro environments may improve the success of the company by building the reputation of the brand (Truswell, 2015). In this essay, we will elaborate on the impact of the micro and microenvironment of the hospitality industry.

The Business Environment of Tourism and Travel Organizations

In today’s world, every tourism and travel organisation consist of the business environment that comprised of factors that affect its market and the company at large. Such factors as the microenvironment are physically close to an organisation because they speak on behalf of the intermediate and suppliers (Horner, 2011). These factors are usually controlled and influenced by the organisation. Every business is also surrounded by macro environments that comprise unknown and extensive factors that partially affect the organisation. While such elements only exist to a global or national level, they physically change the outside part of the organisation when it comes to the tourism and travel organisations (Horner, 2011). The macro-environmental factors, in this case, influence the tourism, hotel and business organisations because it always anticipates them proactively.

The Growing Tourism Demand and Microenvironmental Factors

The microenvironment of the hospitality and tourism industry creates tendencies that demand their markets as registered transversal characters such as increasing the supply and demand in the tourism demand data (Shortt, 2010). According to research done by UNWTO, the market in the hospitality and tourism industries by the 1950’s was 25 million, but today the number increased and reached 1,000 million tourists (Shorrt, 2010). Through their study, it was discovered that the microenvironmental factors would make the international tourism to grow in the next coming ten years. There within the estimated time frame, there will be a tourist demand before the year 2030 (Shorrt, 2010). The exponential increase shows clearly that tourism demand will be as a result of the development of the economy of the world particularly in nations such as Dubai, India and Brazil. Political opponents such as China also fall into the category of the microenvironmental factor because it increased the demand for tourists (Shorrt, 2010). The increased globalisation such as the tourism activities has also stimulated the intent development of technology by reflecting the accessibility of growth in companies especially if they have new destinations to develop their businesses.

Conclusion

Tourism and the hospitality industries as elaborated in the essay face a lot of changes conditioned by the micro and macro environments. These factors increase the demand by changing the premise and values such as the social and sustainability responsibilities. For this reason, it can be seen that such organisations require a more varied and thorough approach to meet their demand especial because of the consumer behaviour level. However, the behaviours are not standardised because of the developing markets that contradict with the ones emerging. Nevertheless, due to the demand diversification of the market, companies tend to adjust their way of operation due to increasing demands of the micro and macro environmental factors. When such principles are followed, the increasing demand for the micro and macro environments can make the company successful.

References

Horner, S. (2011). The organisation of business tourism events. Business Travel and Tourism, 161-200. doi:10.1016/b978-0-7506-4392-4.50018-5

Shortt, G. (2010). Strategic Management in the International Hospitality and Tourism Industry. doi:10.4324/9780080940465

Truswell, R. (2015). Micro- and macro- evaluation of projects in the tourism and hospitality industry. Economics of Tourism Destinations, 209-236. doi:10.1016/b978-0-7506-6637-4.50012-0