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Marketing Mastermind Magazine:
People in Hospitality Industry: Issues and Challenges
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The hospitality industry comprising of travel and tourism, hotels and restaurants, is highly people-oriented. Despite the increased use of technology, the quality of services rendered is largely influenced by the personnel involved. This article focuses on the human resources dimension of the hospitality industry, and addresses the various challenges faced in managing the same.

 
 
 

Hospitality is defined by the Oxford Dictionary as "the friendly and generous reception and entertainment of guests or strangers." Any activity that entails treatment of customers as guests is a part of the hospitality industry. The term hospitality is derived from the Latin word "hospitalitem" meaning friendliness. Travel and tourism, hotels and restaurants constitute a major portion of the hospitality industry. The hotel industry is fairly well developed in India, and forms the pivot of the hospitality business in the country.

As an example, the various jobs in the hotel industry are listed in Exhibit 1. One common characteristic of all these positions is the requirement of skilled employees. The employee's skills are a key differentiator in the quality of service delivery. Even at the entry level, the work requires the employees to have both technical and people-related skills to a good degree. The need for people-related skills among the employees is much higher and far more important in the hospitality sector than in other industries.

The hospitality industry is considered as one of the important sectors in the Indian economy in terms of its contribution to GDP and employment generation. Stable political conditions, FDI inflow, growth of the services sector, infrastructure development and development of travel and tourism are the key drivers for the growth of the hospitality industry. Given the facilitating environment provided by the government, and the initiatives taken by the private sector, the hospitality industry in India is expected to grow at a compounded annual rate of 8% between the years 2007 and 2016.

 
 
 

Marketing Mastermind Magazine, Hospitality Industry, Gross Domestic Product, GDP, Infrastructure Development, Services Sector, Human Resources, Hospitality Services, Global Market, Retention Policies, Recruitment Policies, Government Sectors.