Chapter 8

• Internal factors


  Factors that can be controlled as they are within the operation of a company
• External factors


  Factors from outside the operation that affect a company or industry
• Tourism industry is a very sensitive industry as it always reacts to various external factors such as political, security and safety, economic, legal, etc.
• Uncontrollable Variables that Affect the Hospitality Industry

  • Economics
  • Legal Changes
  • Technology
  • Competition
• Location


  • One of the earliest decisions any entrepreneur has to make is where to locate his or her business
  • Careful assessment of costs is required
• Global Outlook


  • Tourists can choose from destinations all over the world and research the quality of local hotels
• Quality Management


  • Goes beyond customer service to include employee satisfaction and involvement
  • Increases likelihood of excellent customer service
• Flexibility


  • Managers need authority to make decisions to accommodate different customer expectations
• Internal Factors


  • Mission
  • Leadership
  • Communication
  • Organizational Structure
  • Learning
• External Factors


  • Training & Development
  • Company Culture
  • Developing Talent
  • Problem Solving and Service
  • Safety and Security
• External Factors Affecting the Tourism Industry

  • Human Factors
  • Socio-cultural Factors
  • Economic Factors
  • Technological Factors
  • Political Factors
  • Violence and Terrorism Factors
  • Legal Factors
• In the Philippines, external security challenges, nontraditional security challenges, and winning the peace are also considered as factors affecting the tourism industry