Top 6 Management Issues in the Hospitality Industry | SOEG Hospitality (2023)

The work that comes with hotel management is not always easy. Hotel managers are often forced to juggle a number of tasks at any given time from making sure that the books are balanced to ensure that everything is running smoothly. In this article, we have outlined 6 management issues in the hospitality industry.

Because the hospitality industry is one of the fastest-growing sectors in the world, it has been characterised by continued technological advancements.Also, the recent Covid pandemic has made the outlook of the hospitality industry gloomy.

Advancements in the past have done wonders to improve organisation, efficiency and customer experience.

However, they have also brought a few major issues facing the hospitality industry. These issues have affected the way hotels and other services are operated.

These issues create bottlenecks which impede the expected growth. A better understanding of these management issues would give the hoteliers and hospitality managers a clear edge over the competition.

Here are the top 6 management issues in the hospitality industry:

Top 6 Management Issues in the Hospitality Industry | SOEG Hospitality (1)

1. The Constantly Changing Expectations of Customers

The customer is the King in the hotel industry or hospitality industry on the whole.

The whole purpose of the industry is to keep customers happy. But the margins are now decreasing.

Keeping customers happy is not enough anymore. As a Hotel Manager, you need to find ways to delight customers now.

You would need to find a way to bridge the gap between perception and actual delight.

Top 6 Management Issues in the Hospitality Industry | SOEG Hospitality (2)

As you can see in the image above delight only happens 16% of the time. That gap between reality and perception needs to be filled.

Even the service that delighted customers last time would now be an expectation. So, delighting customers in the hospitality industry is getting more difficult with changing customer expectations.

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Changing times have brought about changed demands from customers.

Managers in the hospitality industry are facing completely different problems today than they did in the past/ This is due to the new technological advancements and varying customer behaviour.

With the emergence of apps, for instance, consumers are now beginning to expect a level of convenience and efficiency that must be catered to.

So, taking a cue from social media and digital channels, hotel managers must act to surpass and delight their customers every time they walk in.

Top 6 Management Issues in the Hospitality Industry | SOEG Hospitality (3)

2. Continued Technological Changes and regular innovation

Today, hotel guests are more tech-savvy than ever.Dealing effectively and profitably with this savviness is one of the top management issues in the hospitality industry today.

When they choose to stay in one hotel over the other, they expect to find free Wi-Fi, flat-screen TVs, USB ports and so on.

Hotels and other businesses in the hospitality industry are relying heavily on technology to streamline their services.

Keeping up with technology is one of the major issues faced by hotel managers, but when dealt with properly, it is definitely worth it.

Technology in the Hotel Industry is helping transform businesses in the current competitive era.

Over the past couple of decades, major Innovation in the Hospitality industry is driven by technology.

3. Political and Security challenges

This, again, is one of the top management issues in the hospitality industry.

The issue of managing the macro issues dealing with the socio-political as well as economic challenges.

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The threat of terrorism today has changed how people travel and where they travel.

Hotel managers are tasked with the duty of ensuring that proper surveillance systems are installed and maintained throughout so that guests can feel comfortable and safe.

To deal with security challenges, hotel managers have to rely on high-tech gadgets and software, which can be expensive to acquire and maintain.

Top 6 Management Issues in the Hospitality Industry | SOEG Hospitality (4)

According to studies from the Journal of Hotel and Business Management, macro and micro factors account for security threats.

These range from micro issues like Data theft to macro issues like Terrorism.

A lot of countries like Egypt, Turkey, Syria etc. have faced issues due to terrorism while political and economic issues have hurt economies like Greece, Portugal etc. in the past.

The issue is serious whether we discuss data and credit card security to life hazards and terrorist threats. Hotel Managers need to anticipate as well as study any potential threats and be prepared to minimise losses in such a situation or to prevent it altogether.

Risk Management is thus a crucial point to cover for all hospitality Managers.

Check out the infographic below to understand the various facets of risks that need to be managed. These are pretty much required and evident in the case of hospitality and tourism as well.

Events like the Covid pandemic have only stressed better risk management for hospitality organisations.

4. Skilled labour shortage, staff turnover and Irregular working hours

This is one of the major challenges in the hotel industry.Staff turnover in the hospitality industry is almost double the average across industries.

This can be said to be the biggest management issue in the hotel industry.

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In recent years, the high turnover and increasing competition have only added flame to the issue of the skilled labour shortage in the hospitality industry on the whole.

Because customers expect a lot more nowadays, employees in the hospitality industry, in turn, are forced to deal with long and sometimes irregular working hours.

To make sure that everything is running smoothly at all times, managers have to find new ways to manage their stress because they cannot afford to lose it or burn out.

According to a lot of research works, salary is the most important factor to consider for retaining the best staff in the hospitality industry.

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Another important thing for maximum staff retention in the hospitality industry is to invest in training.

Better training programmes, hospitality industry certifications, online hospitality courses and on-the-job training can help decrease issues and enhance skilled labour percentage.

However, as a hotel manager, the onus is on you to ensure that the turnover is low and that every single one of your team is taken good care of.

Compassionate leadership is one of the key attributes of managers today. Proper team management is considered one of the top Management tips for Hospitality Managers.

5. Booking and Revenue challenges

Today, guests have several options to choose from, which has forced managers to up their marketing and advertising game.

This has created revenue challenges whereby if managers are unable to keep up with their competitors, they risk losing loyal customers and share of the local business.

It is thus important to understand the booking ecosystem and have the best strategic partners in place.

Increasing costs and decreasing revenue come up as key management issues in the hospitality industry.

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6. Seasonality of the hospitality industry

Peak seasons in the hospitality industry tend to bring a lot of business but it also brings undue stress to the management and its staff.

Managers are also charged with the responsibility of keeping up with the ongoing changes in booking and pricing, which can be daunting for anyone.

Everyone is required to make the most during peak season.

While more staff, as well as resources, are required during peak season, the percentage drop heavily during the lean season making it difficult for hospitality managers to ensure profitability.

Innovation, diversification and effective management would continue to hold the key in terms of managing the issue of seasonality in the hospitality industry.


In this article, we have outlined a few of the top management issues in the hospitality industry.

It is important to acknowledge the issues few of which would continue to pose threats in the future.

We need to understand the nature of these threats and then devise ways to counter these management issues.

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It is important to be ahead of the pack by tackling these major issues.

Hoteliers and hospitality managers need to keep themselves on the edge while tackling the issues.

Plan ahead to ensure that you can outwit your competition every single time.

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Remember, “Failing to Plan is Planning to Fail”.


Top 6 Management Issues in the Hospitality Industry | SOEG Hospitality? ›

Passion, sensitivity, team-oriented attitude, emotional self-control, and professional ethics have been identified as characteristics of professionalism within the hospitality industry.

What are the 7 critical risks facing the hospitality industry? ›

7 Risks Involved in the Hospitality Industry
  • Common Safety Hazards. We'll start with the obvious operational hazards, such as slips, trips, and falls. ...
  • Hazardous Chemicals. ...
  • Property Damage. ...
  • Food Contamination. ...
  • Liquor Liability. ...
  • Special Events. ...
  • Traffic Accidents. ...
  • Insurance for the Hospitality Industry.
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What are the 6 aspects of professionalism as related to the hospitality industry? ›

Passion, sensitivity, team-oriented attitude, emotional self-control, and professional ethics have been identified as characteristics of professionalism within the hospitality industry.

What are the 6 rules of hospitality? ›

They include: being kind and optimistic, or having hope; having an intellectual curiosity; a strong work ethic; having empathy; having self-awareness; and most importantly, having integrity.

What are the 7 common issues about purchasing in hospitality industry? ›

Seven problems of the hospitality industry and solutions through membership in a purchasing program
  • Blind Spots. ...
  • Limited Resources, Limited Rewards. ...
  • No Volume Control. ...
  • Order Disasters. ...
  • Communication Mishaps. ...
  • Fear of Collaboration. ...
  • Focusing on Weaknesses Instead of Strengths.
Dec 7, 2022

What is the biggest challenge facing the hospitality industry *? ›

1. Staff Shortages and Retention. Staff shortages have impacted the hospitality industry over the last few years and now more than ever present a significant issue for businesses.

What are six core risks? ›

While the types and degree of risks an organization may be exposed to depend upon a number of factors such as its size, complexity business activities, volume etc, it is believed that generally the risks banks face are Credit, Market, Liquidity, Operational, Compliance / Legal /Regulatory and Reputation risks.

What are the 6 ways in handling risks? ›

What are the Essential Techniques of Risk Management
  • Avoidance.
  • Retention.
  • Spreading.
  • Loss Prevention and Reduction.
  • Transfer (through Insurance and Contracts)
Jun 22, 2022

What are the 6 professional ethics? ›

Six core values of the social work profession
  • Service.
  • Social justice.
  • Dignity and worth of the person.
  • Importance of human relationships.
  • Integrity.
  • Competence.

What are the 5 C's of hospitality? ›

The solution to hospitality interface problems however is not avoidance, but understanding the five Cs of hospitality technology interfacing (Confidence, Contracts, Communications, Comparisons and Contingencies).

What are the 5 key hospitality management duties to expect? ›

Although the job description for these duties varies, there are mainly five key responsibilities every Hospitality Manager should expect to administer: Managing budgets, customer service, supervising maintenance, coordinating departmental tasks, and overseeing food and beverage.

What are the 5 major components of hospitality industry? ›

Five Different Sectors of the Hospitality Industry. While the hospitality industry covers several different services, it can generally be defined through five different sectors. These sectors include food and beverages, lodging, recreation, travel and tourism, and meetings and events.

What is the big five in hospitality industry? ›

In fact, there's a famous saying in the hotel business arena and it goes like this (This is not my quote, so apologies if this goes a bit too far in expressing the truth); A good hotelier is a Democrat, a diplomat, an acrobat, an autocrat, and a doormat, all wrapped in one.

What are the six 6 characteristics of tourism hospitality and events? ›

There are six major components of tourism, each with their own sub-components. These are: tourist boards, travel services, accommodation services, conferences and events, attractions and tourism services.

What are the six 6 elements of tourism? ›

Thus, identification of the Brajan Tourism Village done by 6 elements, namely attraction, image, accessibility, facilities, human resources, and price.

What are the 6 A's of tourism? ›

A tourist destination is composed of a multitude of characteristics that can contribute to the success of a dynamic co-creation process that will increase the destination's competitiveness in the tourism sector such as Attractions, Accessibility, Amenities, Available Packages, Activities, and Ancillary Services.

What are the 8 components of tourism and hospitality? ›

For many years, however, the tourism industry was classified into eight sectors: accommodations, adventure and recreation, attractions, events and conferences, food and beverage, tourism services, transportation, and travel trade (Yukon Department of Tourism and Culture, 2013).

What are the 6 important steps in purchasing? ›

The 6 key steps of the purchasing process
  • Step 1: Identification of the need.
  • Step 2: The description of the product characteristics.
  • Step 3: Drafting the specifications. Is it necessary to issue a tender ?
  • Step 4: Supplier sourcing. Step 5: In-depth analysis of applications. ...
  • Step 6: Preparing for the negotiation.

What are 3 factors that can affect the hospitality industry? ›

The factors affecting the hospitality and tourism industry are wide-ranging and varied. Natural disasters and weather changes, as well as transportation services and consumer protection laws, all have an impact on how hotels, motels and resorts do business.

What is an example of problem solving in the hospitality industry? ›


Often, your role may include identifying problems guests are having and working out the best way to resolve them to minimise the effects on their overall experience. This may also involve following up with customers afterwards to be sure your team resolved the problem to their satisfaction.

What are the current trends in the hospitality industry? ›

Needless to say, the trend towards digital and contactless services has gained new momentum. Traditionally, customer-facing services are being given an overhaul thanks to the more widespread use of technology-assisted options, such as mobile check-in, contactless payments, voice control and biometrics.

What's the meaning of hospitality management? ›

Hospitality management involves all the tasks and aspects associated with managing a hospitality business. These businesses focus on welcoming customers and providing them with pleasant experiences, whether through dining, lodging, events, entertainment, or travel.

What characteristics of the hospitality industry are the most challenging explain your answer? ›

The main challenges for the hospitality industry are the lack of predictability and the magnitude of such events – and how fast the industry can react and adapt. Hybrid operations might be one of the hospitality industry's possible responses to increased risks.

What are 5 common types of ethical issues in business? ›

Common ethical issues in business
  • Discrimination.
  • Workplace safety.
  • Social media use.
  • Employee privacy.
Jul 26, 2021

What are the 10 basic principles of hospitality managers? ›

10 Ethical Principles for a Hospitality Manager
  • #1 Honesty. People around the world appreciate honesty and to become a successful hospitality manager, you have to be honest and truthful in all your dealings. ...
  • #2 Integrity. ...
  • #3 Trustworthy. ...
  • #4 Loyalty. ...
  • #5 Fairness. ...
  • #6 Respect. ...
  • #7 Commitment. ...
  • #8 Leadership.
Aug 1, 2016

What are the 6 types of risk factors? ›

3.2, health risk factors and their main parameters in built environments are further identified and classified into six groups: biological, chemical, physical, psychosocial, personal, and others.

What is step 6 in risk management framework? ›

Risk Management Framework (RMF) Step 6: Monitor Security Controls CS107.16. Description: This course covers the final step of the Risk Management Framework process: Monitor Security Controls. This step is critical in maintaining an effective security posture and accreditation status.

What is 6 to 6 risk matrix? ›

The impact and the consequences of the same event are defined by one for Catastrophic event, two for the severe, three for the minor, four the minor, five for the moderate and finally six for the incidental.

What are the 6 steps of a risk assessment? ›

You can do it yourself or appoint a competent person to help you.
  • Identify hazards.
  • Assess the risks.
  • Control the risks.
  • Record your findings.
  • Review the controls.

What are the 5 key risk management strategies? ›

The basic methods for risk management—avoidance, retention, sharing, transferring, and loss prevention and reduction—can apply to all facets of an individual's life and can pay off in the long run.

What are basic management risks? ›

Literally speaking, risk management is the process of minimizing or mitigating the risk. It starts with the identification and evaluation of risk followed by optimal use of resources to monitor and minimize the same. Risk generally results from uncertainty.

What are 3 examples of risk management? ›

Some examples of risk management strategies are risk avoidance, risk acceptance, risk transfer, risk reduction, and risk retention.

What is risk management in the hospitality industry? ›

What is hotel risk management? Hotel risk management is the process of identifying, assessing and controlling risks. This includes operational risks, safety, financial and technological risks.

What are the 7 codes of ethics? ›

7 Ethical Principles
  • Honesty and Integrity.
  • Fairness of commercial practices.
  • Data confidentiality.
  • Professional behavior.
  • Professional skills and added value.
  • Social respect.
  • Environmental care.

What are the 5 codes of conduct? ›

An employer's employee handbook may include several sorts of codes of conduct, including these five principles:
  • integrity.
  • objectivity.
  • competence.
  • confidentiality.
  • professionalism.
Nov 11, 2022

What are 6 core or universal ethical values? ›

Based on the convergence of the three sources of standards, six universal moral values for corporate codes of ethics are proposed including: (1) trustworthiness; (2) respect; (3) responsibility; (4) fairness; (5) caring; and (6) citizenship.

What are the 4 P's in hospitality? ›

The 4Ps in tourism are “product,” “price,” “place,” and “promotion.” They are intangible factors for enthusiasts, planners, and adventurers and are categorically streamlined as follows.

What is the 5 15 rule in hospitality? ›

15/5 rule: When a guest is within 15 feet their presence should be acknowledged through some means whether a smile or head nod. Similarly, when a guest is within 5 feet they should be greeted in an appropriate manner whether that be a “hello”, “good morning”, or “good evening.”

What are the 6 basic hospitality skills? ›

Top 10 skills all hospitality employees have
  • Teamwork: Almost every job within the hospitality industry involves teamwork. ...
  • Multi-tasking: No day is the same within the hospitality industry. ...
  • Flexibility: ...
  • Attention to Detail: ...
  • Industry Awareness: ...
  • Time Management: ...
  • Communication: ...
  • Interpersonal Skills:

What are the 7 elements in the hospitality concept framework? ›

A Hotel Concept is designed around 7 components that cover all aspects of running it successfully: The Story, The People, The Space, The Identity, The Services, The Content, and The Channels. Starting from the central story, components are interconnected and work side by side to build a unique, coherent whole.

What are the segments of the hospitality industry? ›

The hospitality industry is vast and can be broken down into separate sectors. The top four sectors consist of; 'Food and Beverage', 'Accommodation', 'Travel and Tourism' and 'Entertainment and Recreation'.

What is hospitality segments? ›

Hotel market segmentation is the process of grouping hotel guests into categories based on their booking patterns and travel habits. By segmenting hotel guests into market groups, hoteliers are able to identify where their business is coming from, spot new business in the area, and drive hotel revenue.

What are the key areas of hospitality management? ›

Although the job description for these duties varies, there are mainly five key responsibilities every Hospitality Manager should expect to administer: Managing budgets, customer service, supervising maintenance, coordinating departmental tasks, and overseeing food and beverage.

What are the main key elements of the hospitality? ›

The hospitality industry has four key segments, namely, lodging and accommodation, food and beverages, travel and tourism, and entertainment and recreation.

What are the three main areas of hospitality management? ›

The three main areas of the hospitality industry are accommodations, food and beverage, and travel and tourism. All branches of the tourism industry focus on the customer. There are different levels of service within the hospitality industry, which are decided by rating scales.

What are the 6 stages of tourism? ›

Destination life cycle : There are six stages of any tourism destination; there are exploration, involvement, development, consolidation, stagnation and decline.

What are the 4 categories of hospitality? ›

There are four segments of the hospitality industry: Food and beverages, Travel and Tourism, lodging, and recreation.

What is the largest segment of hospitality? ›

Food and beverage is the largest segment of hospitality. It includes any food and beverage establishment large or small.

What are the five qualities of service management in hospitality industry? ›

The five service quality dimensions are tangibility, reliability, responsiveness, assurance, and empathy.


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