External Environment of Hospitality Industry Essay

External Environment of Hospitality Industry - Essay Example According to the research findings, it can, therefore, be said that considering the ever-changing environment for the coming generation, it is highly likely that these people may not provide that much business to the hospitality and tourism industry as compared to their parents. This is true because of increasing pressures on the next generation for hard work, the presence of more options to do at home with all the gadgets and challenging work life to maintain an acceptable level of lifestyle in the coming years. Therefore, the hospitality industry will have to cater to these customers by providing them with the most value in limited time considering their busy lives. Another possible socio-cultural factor would be the rise of ethical consumerism in the developed countries where consumers are looking for products and services whose practices are of fair-trade, green, ethical, sustainable and responsible. These consumers are often ready to pay premiums for the products and services of such companies and the same is true for the hospitality industry as well. This niche market has immense potential since it has grown from 13.9 billion pounds in the year 1998 to 40.2 billion pounds in 2010 in the UK alone. Without any doubts, the economic factors are the most defining and crucial external forces affecting the hospitality industry. Even as of today, the global economic system has not recovered from the recession that hit in the year 2007. In the United Kingdom, experts are hinting a fear of double-dip recession. The current economic outlook of United States is not healthy considering the fact that for the past couple of years, 2009 and 2010, the real GDP growth rate has been -2.7 and 2.9 respectively and the unemployment rate is at alarming high level of 9.1 percent. On top of these, the frustration and aggravation of the people of US are evident from the movements such as Occupy Wall Street and 99 percent.