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Hospitality and Tourism Management

Problem-Solving Matrix

Problem-solving Matrix

Problem 1

Problem 2

Problem 3

The human resource context

According to Solnet et al. (2013), it could pose a tremendous challenge creating an all-round pressure for the HR department in the hospitality and tourism sector if any kind of wrong information is given on an external booking platform, whether it is regarding the availability of rooms, cost of rooms and included amenities or incorrect information about travel packages. This has an impact of adversely affecting consumer marketing. Bookings made by the customers under incorrect prices will directly hit organizational outcomes in the long-term. For smaller businesses, the risks involved are even more, for instance, leading to employee turnover and related problems.

High staff turnover rates in the hotel when the biggest conference of the year is around the corner could prove to be disastrous for the HR management department in the hotel. The HR department would have to carry out hurried recruitment processes and might even end up choosing unworthy applicants because of time restraints. Also, a lot of time, money and effort would be spent on the training of the new joiners so that uncalled for circumstances do not arise on the days of the actual conference and its events (Melian-Gonzales & Bulchand-Gidumal, 2017).

These are pure grounds for suspicion on the activities of the employees. If the footfall of customers for occupying rooms in the hotel is not so large, it is certainly not possible that the quarterly statement of the housekeeping department can show high use of linen fabric for adorning the rooms. It either means that there are errors in accounting of the expenses meted out by the hotel or there is a considerable amount of siphoning of funds by some fraudulent individuals from the hotel’s liquid cash which is used for day to day operational expenses. The HR department should make use of appropriate technology like the transactional history of credit cards to discover where the discrepancies lie and who is responsible for the same (Abdallah et al. 2016). It should be noted that every major and minor service provided to the customers in the hospitality and tourism industry counts as a valuable asset for the particular company.

The financial context

Bookings made by the customers under incorrect prices leads to financial and accounting discrepancies within the organization while also reducing the available liquidity. Information asymmetries give rise to confusion and mismanagement of the finances of the organization (Motta & Sharma, 2020). The hospitality and tourism industries within an area help in the local economic development of the region. If their prices are quoted incorrectly and below what they charge, neither would they be able to service their customers well in the long-term nor would they be able to indulge in and fulfil their CSR activities. The finance department needs to keep a careful check on the accounts.

To retain well-performing employees, the HR would have to compensate them better and increase their perks and benefits, which would add to the expenses of the hotel in such challenging times (Bryant & Allen, 2013). Recruitment and training to compensate for the employees that have left also raises expenditures putting a large amount of pressure on the finance personnel and even on the top management.

The hotel’s future financial performance can be affected to a great extent is its expenses are ever-increasing and business remains low (Xie et al., 2017). There should be a timely response to these threats by the finance division of the hotel. Along with the HR department, they must look into where the discrepancies in income and expenditure lies so that there is no decline witnessed in the growth of the business.

The product and market context

Kotler et al. (2017) have highlighted that the marketing of products and services in the tourism and hospitality industry is based on teamwork. The entire marketing team is brought under the scrutiny of its team leader and superiors if the marketing practice does not follow the policies of the company. Meanwhile, an absurd brand image of the company is also created in the market and amongst the consumers. Doubts regarding the quality of products and services of the company may develop in the minds of consumers and the future, they may abstain from obtaining the products and services of the company.

Ugoani (2016) mentions that employee turnover can badly affect productivity within the organization. In the case of a major conference about to take place, employee turnover could become the cause of undeserved disrepute being spread of the hotel and its products and services in the market. This calls for taking up remedial actions by the management to retain an essential number of people working for the hotel as well as for its economic durability.

It can prove to be a damaging factor to the reputation of the hotel, its products and services if some employees are indulging in foul play by siphoning off the funds which are intended for customer delight and satisfaction. It can go on to tarnish the overall image of the organization. Even if there is no foul play, it is a sheer waste of resources on behalf of the housekeeping department to keep spending on more linen when the actual occupancy levels are low. Sandaruwani and Gnanapala (2016) have highlighted that the wastage of resources can unnecessarily challenge the organization in carrying out its daily functions and put a humongous strain on its expense capabilities.

Effective Framework

The HR and top management in the hospitality and tourism industry should ensure that the company’s IT and marketing teams remain vigilant about what they are displaying to their potential customers on external booking platforms. They should only display what they can offer and what is within their means. Otherwise, it could lead to dissatisfaction amongst the customers and also bring about business losses. A talented individual should be exemplified, awarded and rewarded for their exceptional performances from time to time to reduce the turnover of these industrious employees. The team leader should also make sure that she or he keeps his team members motivated to work more efficiently and keep their spirits high. The HR and accounting department together should keep a meticulous check on the income, expenditures, overall balance sheets of the hotel’s various departments as well as the honesty level, temperament and motivating factors of their employees. This will ensure that employees commit fewer mistakes in their work, that they do not indulge in fraudulent pursuits and also that the company achieves great heights in the future to come.

References for Problem-Solving Matrix

Abdallah, A., Maarof, M. A., & Zainal, A. (2016). Fraud detection system: A survey. Journal of Network and Computer Applications68, 90-113. DOI:

Bryant, P. C., & Allen, D. G. (2013). Compensation, benefits and employee turnover: HR strategies for retaining top talent. Compensation & Benefits Review45(3), 171-175. DOI:

Kotler, P., Bowen, J. T., Makens, J., & Baloglu, S. (2017). Marketing for hospitality and tourism. Boston, MA: Pearson Education

Melián-González, S., & Bulchand-Gidumal, J. (2017). Information technology and front office employees’ performance. International Journal of Contemporary Hospitality Management, 29(8), 2159-2177. DOI:

Motta, V., & Sharma, A. (2020). Lending technologies and access to finance for SMEs in the hospitality industry. International Journal of Hospitality Management86, 102371. DOI:

Sandaruwani, J. R. C., & Gnanapala, W. A. C. (2016). Food wastage and its impacts on sustainable business operations: a study on Sri Lankan tourist hotels. Procedia food science6, 133-135. DOI:

Solnet, D., Kralj, A., & Baum, T. (2015). 360 degrees of pressure: The changing role of the HR professional in the hospitality industry. Journal of Hospitality & Tourism Research39(2), 271-292. DOI:

Ugoani, J. (2016). Employee turnover and productivity among small business entities in Nigeria. Independent Journal of Management & Production (IJM&P)7(4), 1063. DOI: 10.14807/ijmp.v7i4.466

Xie, K. L., So, K. K. F., & Wang, W. (2017). Joint effects of management responses and online reviews on hotel financial performance: A data-analytics approach. International Journal of Hospitality Management62, 101-110. DOI:

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Hospitality Management Assignment Help

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