International Travel & Tourism: Impact on Growth in the Hospitality Industry

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  • 0:02 International Travel & Tourism
  • 0:56 Hospitalitiy Industry Growth
  • 1:56 Challenges
  • 4:11 Lesson Summary
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Lesson Transcript
Instructor: Natalie Boyd

Natalie is a teacher and holds an MA in English Education and is in progress on her PhD in psychology.

In this lesson, we'll examine the impact of international travel and tourism on the hospitality industry, including growth and challenges that arise from an increase in international travel.

International Travel & Tourism

Lorrie is the CEO of a travel tour company. They give tours of cities around the United States, and Lorrie is in charge of making sure the company continues to grow. Lorrie has heard that international travel and tourism is a growth industry, but she's not sure what that means. How can international travel and tourism help her plan her company's future?

International travel and tourism is a general term for people traveling outside of their home country. It involves people traveling for leisure, not business. As Lorrie has heard, more and more people are traveling internationally for leisure. This growth has an impact on the travel and hospitality industries.

How can Lorrie's company benefit from the growth of international travel? To help her figure that out, let's look at growth in the hospitality industry and challenges that international hospitality companies face.

Hospitality Industry Growth

As a travel tour operator, Lorrie's company arranges lodging with many different hotel chains, some of which have locations worldwide. Lorrie is wondering if international travel's popularity has affected these hotel chains. The hospitality industry includes lodging, food, and beverage services for people who are not at home. The hotel chains that Lorrie works with are examples of lodging providers within the hospitality industry.

Growth in the area of international travel and tourism is driving growth in the hospitality industry. This makes sense to Lorrie, since people who are traveling internationally often need places to stay and places to eat and drink, like hotels, restaurants, and bars. Some estimates say there will be between 3% and 4% growth in international travel in 2017. That can represent billions of dollars spent across the world. That's a big deal!


Lorrie thinks her company can benefit by adding international travel packages to their domestic ones. To do that, she'll want to work with hospitality providers, like hotels and restaurants, to put together a great package for her customers.

International hospitality does present some challenges. For example, multicultural issues are common when dealing with international travel. Something as simple as how a staff addresses visitors can be a challenge too, since some cultures find eye contact uncomfortable or even offensive. Others believe it to be a sign of honesty and respect. People from some cultures don't eat meat or abstain from drinking alcohol. All of this diversity can be challenging for international hospitality providers.

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