Presentation on theme: "Forces Affecting Growth and Change in the Hospitality Industry"— Presentation transcript:
1 Forces Affecting Growth and Change in the Hospitality Industry Chapter Two
2 The Purpose of this Chapter The hospitality industry, as it exists today and will probably be tomorrow, is the result of the interaction of basic market forces. We will look at the most basic of these forces below.The first is demand for hospitality services from consumers.The second is the supply of the products and services created by hospitality service companies.
3 Demand in the Hospitality Industry Demand is the most basic force driving the hospitality industry’s development. This demand translates into customers, so to understand demand we must first understand our...Customers!
4 Demand translates into customers We need to look at our customers from three different perspectives:We need to understand what the population’s changing age patterns areWe will explore how they affect the demand for hospitality productsWe will look at other patterns of change, such as:the increase in working womenthe transformation of family structurethe changes in income and spending patterns.
5 Demographics vs. Psychographics Demographics The study of objectively measurable factors in the population, such as age, income, gender, sexual preference, marital status, etc.Psychographics Different patterns of activities, interests, and opinions – the forming of “groups”
6 Structural Changes That Will Shape Demand for Hospitality Services in the Twenty-First Century Increasingly diverse populationMore women in the workforceChanging family compositionChanging income distribution
7 The Changing Age Composition of our Population Baby BoomersBorn 1946–1964Constituted nearly one-third of the population in 2000Generation XersBorn 1965–1975Have reputation as worldly wise, independent, pragmatic, computer savvy, ad-intelligent consumersEcho BoomersBorn 1976–1994Children of baby boomersWill nearly overtake baby boomers in number by 2010
8 Changing Family Composition Households with children under 18Largest segment today—37 million Households without children under 18Will increase 29% to 37 million by 2010Spend more than any other household
9 Changing Family Composition Single-person householdsGrowing because more people are delaying marriage until completing their educationGood potential customers for the hospitality industry
10 Changing Family Composition Single parentsHave relatively lower incomesEat out less often than the average AmericanLess likely to be hotel customers or to travel
11 Good Locations for Hospitality Establishments High-traffic areasLocations near major destinationsLocations associated with scenic beauty
12 Hospitality Occupations Expected to Grow More Quickly Than the Total Workforce Growth of U.S. workforce: 14%Chefs and cooks: 14%Servers: 15%Foodservice and lodging managers: 16%Flight attendants: 30%Travel agents: 18%