The depicted through the generation of employment and

The following
essay will take under examination a prominent issue that affects a wide array
of our daily lives.  More specific, will
be critically evaluated the relationship between the hospitality industry and  globalization according to a number of
temporary issues that is associated with such as economics, politics or even
culture. In this essay the meaning of globalization will be thoroughly explained
by analyzing the different perspectives exist on these matters. The
contradictory nature of globalization will allow us to examine the opinions
from many different sources in order to draw the complete picture of the
previous mentioned phenomena. Globalization is becoming more important for the
hospitality industry now days. Due to globalization it is hard to identify a
product or service that is not influenced by a cross border transaction
(Parker, 2005) the question that comes up on the surface is how all these
processes can immediate affect the hospitality industry?

According to S.
Roday (2009), hospitality is associated not with the provision of hotels and
food establishments but most importantly with the provision of physiological
and psychological comfort to the guest. 
Thus, hospitality means the relationship between the guest and the host.
In other words it can be considered one’s ability to place him-herself into
someone else’s shoes and make him feel genuine valued and welcomed. Tourism and
hospitality industry is considered one of the most solid industries in the
world economy in nowadays, by the time that is rapidly and constantly
growing.  The importance of all the
previous can be depicted through the generation of employment and foreign
currency that industry entails. World travel and tourism council indicated that the
jobs indirectly supported by the industry was 9.6 of total employment. Figure
that rose by 1.9 during 2017 with a prospect of expanding even more in 2027(11.1% in total)

Getting more
specific, from
early 80s it can be argued that the world economy have become increasingly
connected and integrated through trade and financial flows.  The financial flow concept, can also be
referred on the movement of people (labor) and knowledge between international
borders. Decreased transportation costs, elimination of distance or even the
massive development of technology lead to the current wave of globalization.
The previous mentioned interconnected aspects, resulted into the formation of a
homogenous mass with the erosion of any local differences. However, “Ideas of ‘globalization’ are so broad, so diverse and
so changeable that it sometimes seems possible to pronounce virtually anything
on the subject” (Scholte 1997). The previous statement projects exactly
the contested nature of globalisation with the inability of ours to find a
widely accepted definition.

By summing up, our
world can be described as a global mall in which products, services and ideas
can be accessible around the world whenever when someone needs them. The
phenomenon of globalisation, advocates a borderless growth and
internationalisation according to a number of perspective such as social, economic, political and cultural. Globalization has been accompanied
not only with positive outcomes but more importantly has been associated with
many critiques toward a number of phenomena that replicates. This is why the following essay will endeavour to provide an
overview of those matters by incorporating all the possible explanations.

Financial aspect

One of the most important perspectives that
globalisation affects is the financial one. As mentioned earlier the bases of
globalisation is the internationalisation of the world economy. The
internationalization leads to the development of international economic
cooperation, its deepening and intensification (Dumulen, 2003).  One of the most profound indicators of this
process is the economic collaboration among different countries and the
subsequent international division of labour. It is
accepted that the world economy has become more integrated due to the process
of globalization (Neuland and  Hough,
1999). From a pure economic perspective it can be argued that globalization
lead into an interconnection and interdependence of markets that facilitated
the production of goods and services to be made available around the globe. On
the same fashion ,many hospitality executives, in an attempt to minimize their
companies costs  are turning to
outsourcing ( the attempt of   acquiring
materials and products from other companies) in order to maximize their
profits. By the time that domestic markets started to saturate, the only way of
maintaining and expanding profits was the adoption of the international markets
trends. More specific, globalization had a massive impact on the market of
hotel services in the world by the time that lead into the creation of large
corporations and hotel chains. Hospitality among the years ended up at the
heart of business interests that met no physical boundaries, in an attempt to
develop and expand its activities. 
According to Frink (2009) globalization helped the hotel companies in
order not only to expand their business, as already been said, but also to gain
further market share. The previous practices led on the
creation of further opportunities and as a consequence more profit.  Real life examples such as Marriott or Hilton
demonstrate that they could survive even under severe financial crisis.  So, the more places of business that a hotel
company has, the better chances for the hotel company to be successful in the
hospitality industry (Frink, 2009). Similarly, the globalisation of the world economy
resulted into the exchange of the human capital apart from technology or even
technical innovation .  Hotels had the
opportunity to employ  a number of
different people from various backgrounds by supporting diversity.  The impact of globalisation helped the
businesses to invest in tangible and intangible aspects for the sake of their
investments. At the same time globalization strengthened the global
completion which had an impact on the way that companies in nowadays
operate.  From one hand the changing
structures of the global markets and the high customers’ demands from the other
resulted the hospitality professionals to impose better business practices in
order to satisfy their guests.

From one hand,
it can be argued that there are loads of benefits when the organizations
decided to enter into the economic global environment.  The increased liberalization of markets and
the elimination of barriers lead into an integrated financial system that
helped to stabilize and expand ones country’s economy..

On the other hand thought, the contested nature of
globalization, initiates a number of questions regarding its effects on
economic growth. Even though that creates opportunities by affecting the scales
of growth in a positive way however also results in inequality that manifests
on a number of ways. It could be argued that the various economic reforms were
shaped on the basis   of the alleviation
of the disparities existed by contributing to stabilize equality as well. The
figures start to get upsetting by the time that within countries  the 
inequality of income, wealth, or even education  are sky rocketing by undermining the social
cohesion . In a greater detail, the opponents of globalization state the
differences existed among developing and developed countries.  Brittan  (1998)  states that globalisation led to an increase
in the wealth of developed countries and also not to bigger poverty in the
developing countries.  For example, the
improvement in economic growth in one country didn’t result into the
sustainability of another. A number of countries are facing threats like
poverty or marginalisation even though that they belong under the same
international trade system.  On the same
fashion, it was identified that there was an increase in the income gap between
the developed and the developing nations between the years of 1980-1990.
According to IMF during the early 2000 was identified that the richest part of
the world populations income was improved six times while the poorest one
improved only by three.  From all the
previous, it can be argued that globalization even thought that created
opportunities for further development on the hospitality industry, however
resulted into the marginalization of some nations.  Poverty, income inequality and social
degeneration, took place from some countries got involved into this process.

Culture

On the following, another important aspect that
globalization immediate affects, is the one of culture.  The world in some way is considered as a
global village that incorporates different cultures and traditions. Culture
plays a vital role when people form attitudes and is considered as the
necessary tool of communication that directs their actions as well. Hofstede (1980)
defines culture as the collective programming of the mind which distinguishes
the members of one group or society or category or nation from another.The
word  culture derives from the Latin,
cultura that actually means to cultivate. Therefore from the perspective of
globalization, it can be argued that is the process of social cultivation in a
global scale.
One
way of investigating culture is through the claim of cultural homogenization. Anti-globalisation
advocates support that our world has been homogenised to the extent that people
are under the commands of the market forces without having an alternative
choice. It treats people like objects, by eliminating culture diversity. This is
why cultural homogenization tend to disregard local cultural perspectives (Huang
and Trauth 2006). As a result it could be argued that the modern tourism and
hospitality environment is highly experiencing internationalization and globalization
phenomena.

According to the hospitality
industry itself, diversity is at the heart of its existence by the time that
includes people from diverse backgrounds in terms of ethnicity and national
origin (Shaw and Barrett-Power, 1998). Hospitality industry, for
migrant workers, has been really generous and supportive by the time that
offers   immediate access into the labour
market.  Hospitality employers in
Multicultural countries such as United States or United Kingdom have a long
tradition of managing people from various origins. In the corporate world, diverse
backgrounds in work environments may provide an advantage of differentiation
within the industry however the different cultural origins may result into conflicts
as well. This is why managing the workforce effectively can be seen as a valid
way of meeting the corporate goals. When hotel enter into globalisation, they should use standardisation and
localisation strategies which means they should keep the same standard in terms
of service and quality while altering their service and product to adapt to the
different culture and traditions. The concept “Thinking global and acting
local” (or “thinking glocal”) is essential for hotel companies’
development. Besides, using differentiation strategies is also a good way to
become competitive. The concept of
“glocalization” is a hybrid in-between strategy that embraces elements of global
culture and integrates them, to a greater or lesser degree, into local culture
(Alden 2006). According to  Ritzer (2003)
glocalization can be seen as the result of unique outcomes in different geographic
areas. There are a number of companies that employ glocalised approaches in
order to adopt to local cultures.  McDonald’s
for example modify its menu by serving “Kimchi Burgers” in Korea, beer in The
Netherlands, and wine in France. On the same fashion, Triandis (1990) argues that
consumer’s behaviour is shaped according cultural dimensions such as individualism
versus collectivism. Individualism appears to be more appreciated in Western
cultures whereas collectivism is more values in Easter countries. International
hotels are tailoring their business plans according to the special requirements
of particular regions.

Differentiation strategy is about providing guests with
distinct products or services. These unique and distinctive attributes make
them attractive in the eyes of their guests.On the
other hand though, any attempt to globally standardize service delivery may
encounter difficulties (Hjalager, 2007; Lee, 2011; Lovelock, 1996).  According to Zhou and Belk (2004) every market
has its own unique characteristics so a globalised approach may not take the
cultural differences existed on specific markets.  A localised approach, as mentioned earlier, can
have positive implications because individuals while traveling are trying to associate
them-selves with local lifestyles, values and attitudes (Crane, 2002). Lack of understanding
of local factors could lead to the failure of multinational companies in their expansion
process (Bhattacharya & Michael, 2008). This is why, a critical balance
must be find, among globalisation and glocalisation in order to satisfy the
growing numbers of customers.

On the
other hand, some important implications of the aforementioned, must be further
analysed. Critics of globalisation argue that the penetration of pop culture
resulted into a cultural genocide of the world. The most dominant cultures
appear to gain significant power while the less dominant one are facing
erosion.  This is what is called as identity
crisis or Americanization where the mass media operate as a facilitating tool
for its expansion. Americanization in specific has been accused of homogenising
the world culture with the spread of corporations abroad that manifest in
various ways such as food habits lifestyle and patterns of behaviour. The sociologist
George Ritzer (2004) coined the term McDonaldization