Starting with the positive effects of globalization, it helped in increasing knowledge as it has brought various cultures together and the knowledge about various countries and their culture is a good tool for knowing and fulfilling the actual demands of the customers. Moreover it has also helped business to expand and increase their market area for example, in past travelling abroad was a difficult and time consuming task, is a day to day activity of these days people travel to different countries for various reasons like visiting friends, education or business purposes. It also helps in building the economies of different countries. Many countries like India, Malaysia and Thailand are promoting themselves as a tourist destination because visitors come and spend money that adds a great value to the country's economy. Addition to that, it also increases the employment opportunities for example when number of tourist grows the number of persons to serve them also grows simultaneously. The best gift of Globalization for hospitality industry is the variety in cuisine, service styles, and decor.
However on the other hand, like every coin has two sides it also has some negative effects too first of all language and cultural barriers like some of the practices which are very popular in one country can may be not at all acceptable in other location for example some cultures eat only halal meat however in other cultures it is not at all taken. Similarly, language and gestures could be interpreted incorrectly by different cultures. To some extend cultural degrading is also the impact of globalization because when people travel to different places they kind of try to copy the other cultures and moreover to suit customers demands hotels modify some of their services.
Other than this, illegal practices like smuggling and drug addiction has also increased because of globalization and some of the environmental issues like cutting down of forest areas is also result of the globalization.
there are four types of hotel ownership namely franchise, management operated ,leased and private ownership. Firstly, Franchise is privately owned but at the same time the owner pays fees to the franchise for its brand name and other facilities like business model. However, in the management ownership the owner gives its property to a management company who run the hotel and the profit is shared as per agreement made by them.
Afterwards, the leased hotels are owned by individual but a rent is paid for the building.
Private ownership has an investor who is solely responsible for all the operations of the hotel. The hotel owner is free to make all decisions on staff, operational structure and growth, but does not have the benefit of a brand behind him
Next, segmentation is the another important factor to promote tourism it is the process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Its objective is to design a marketing mix that precisely matches the expectations of customers in the targeted segment.(business dictionary) The advantages of market segmentation is that it allows more deep marketing to a particular type of customers and also delight the marketing concept. On the other hand it is expensive, time consuming and improper segmentation can lead to faulty result.
According to Susan Horner and John Swarbrooke there are four types of segmentation as given below:
Figure 1: Classic segmentation techniques (Horner, Swarbrooke 98)
At a basic level, defines tourist consumers according to their geographic location on the assumption that behavior is