Globalization

 According to Cline (2000) globalization is typified by rapid movement of people, information and capital across national borders worldwide in ways that would have been difficult to envision not too many years ago. Yet globalization is as a contemporary force. Globalization is a natural outgrowth of trends that have evolved during the past 50 years. International hotel chains were invented after World War II: they grew in the 1960s and expanded greatly in the following two decades. Industry and economic trends in this decade have further propelled the growth of internationally-orientated hotel companies for a variety of reasons.

The hospitality industry is one of the world’s largest employers and arguably one of the largest traders of foreign currency. It is often a focal point for local society and is clearly at the centre of the transfer of ideas and the cross fertilization of cultures. At its heart, the hospitality industry plays an important part physically in bringing people together in a global community. Those countries suffering from trade imbalances due to high imports frequently look to tourism and hospitality to close the gap. Hospitality is not only an industry; it is a concept—and a major force in the rapidly evolving global marketplace (Ransley and Ingram, 2004:88)

Hotel companies have sought economies of scale attendant to developing single brands and products and providing them in uniform fashion to as many markets around the globe. Hotel companies have to confront virtually all of the issues facing global enterprises. A recurrent issue for hotel companies in a global context is the need to develop global brands and image, while at the same time empowering management and staff closest to the customer in day to day operations (Mrak 2000:3)

Hospitality companies that believe that they can grow and retain a niche position without acknowledging the imperatives of globalization need to take another look. Most hospitality businesses will need to think globally if they are to survive. Globalization will ultimately touch virtually all aspects of the hospitality industry. Increasingly, customers, management process, employees, products and sources of capital will  be competed for and will move across national boundaries.- -competition in the future will come from global entities with the advantages that comes globalization brings (http://www.hotel-online.com/Trends/Andersen/global.html).