Question- Critically analyse the relevance and utility of globalization for the international hospitality industry.
In the recent years hospitality industry over the years has expanded their business all around the world. Big hotel chains such as Marriott’s and Accor group are opening their hotels in developing countries such as India, Singapore etc. The process of globalization has played a major role in expanding their profits and laying their business across their own boundaries. Majority countries, around the world have been trying to promote globalization through eliminating barriers and reducing taxes. However, there are various methods through which companies are trying to expand such as licensing, Exporting, joint venture and
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We have also seen that big hotel brands such IHG and Hyatt group of hotels which were originated in US are now expanding their hotels in various other countries such as Singapore, India etc. These organizations are enjoying the flavour of different cultures around the world. They are particularly employing local people from the country who are getting a chance to work with an American hotel brand and through this way both the employee and the employer gets to understand each other culture. Through expanding their hotels in different countries, customers also gets a chance to enjoy the same luxury that they enjoyed while living in a same brand of hotel in some other part of the world. Customers are also becoming brand conscious and getting loyal to them and hotels are trying to maintain the level of quality all around the world by giving them the services in their own style (Lee 2009). Another example from the hospitality context is Starbucks, which is one of the largest operated coffee shop chains in the world. According to the company reports, Starbucks which is a US originated coffee shop was highly successful in Asian markets due to rise in the middle class people who are ready to adopt the western culture (Biederman 2005). Development of middle class people in the Asian countries had a huge impact on the hospitality industry since they are adapting to western culture and through this the hospitality industry