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Lecture2.Literature: Barrows &Powers, 2009,

Chapter 2.

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Generation Impact on Hospitality Industry

BABY BOOMERS(1946-64)In 2010: 75 mln in the US

Generation X (1965-75)In 2010: 77 mln in the US

Generation Y (1975-85)

QSR Wendys Fuddruckers

Holiday Inn midscale

LS properties

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Dennys California CafeSkipjacks Taco Bell

Labor supply

Upscale foodLodgingTravel

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Diversity Impact on Hospitality Industry

African Americans,Asians, NativeAmericans, and

Hispanics majority ofthe US pop.after 2050

Popularity of ethnicrestaurantsConvention and visitor

bureaus targeting Afr-Amer.groupsIncrease inAfrAmer.Sponsoredevents

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Working women Impact on Hospitality Industry

41% of managers in foodindustry51% in the lodging segment

Growth of two-incomefamiliesNeed for eating out

Female workforce participation in the US 1950-2030

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Family composition Impact on Hospitality Industry

33% two-peoplehouseholds27% single-person h.

Families decrease

Empty-nesters grow

Spend more on take-out foodNeed for eating out;high spendings onfood

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Changing income distribution Impact on Hospitality Industry

Middle-class decrease Lodging and travelmostly struck, not food

Relation between the household incomeand number of dining-out occasions, 2000

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Other factors Impact on Hospitality Industry

ActivitiesInterests Psychographicsopinions

?

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Food Impact on Hospitality Industry

Changes in raw food costs

Major climatic changes

Similar impact onbusinesses

A threat

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Food

2000-2010 growth in USworkforce of 15%The greatest growth in jobsrequiring advanced educationManagement jobs by 12%

Cooking and food-preparationjobs 12%Food and beverage serverpositions 20%Gaming service workers- growTravel agents 3%Flight attendants -18%

High turnoverStiff competition from otherindustries

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Food Impact on Hospitality Industry

2000-2010 growth in USworkforce of 15%

The greatest growth in jobsrequiring advanced educationManagement jobs by 12%Cooking and food-preparation jobs12%Food and beverage server positions 20%Gaming service workers- growTravel agents 3%

Flight attendants -18%High turnoverStiff competition from otherindustries

Bonuses offeredImmigrants

employedPart-time jobsimportant (50%!)

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Workforce diversity Impact on Hospitality Industry

African Amer.increase twiceas fast as white male

Hispanics workforce fourtimes as much

female faster than male white male 50% of new

entrants in 1990, now- 10%!

Need for training