The present answer will assess the use of outsourcing for tourism and hospitality businesses and evaluate cultural challenges that may arise in relation to it. The subject is of critical importance to the sector because businesses that operate in it are in constant need of services that may be provided by outsourced workers. For example, research suggests that hospitality businesses benefit from outsourcing various staff, including waiters, cooks, security, cleaners, and entertainers. To fulfil the goals of this assignment, the paper will consider the benefits of outsourcing for hospitality and tourism organisations while also discussing how socio-cultural concerns may affect outsourcing practices.
The first benefit of outsourcing for tourism and hospitality organisations is that it provides more flexibility in terms of hiring. This is particularly useful for hospitality organisations, which are sometimes required to provide services at short notice. In these cases, if an organisation is using most of its staff to run regular operations, outsourcing employees for a particular event or service is extremely helpful. On the one hand, it would enable the company to provide a high quality of service to unexpected clients. On the other hand, it would help to avoid disruptions in regular operations, thus ensuring a high level of satisfaction of regular clients. Therefore, the flexibility granted by outsourcing helps hospitality and tourism companies to keep clients satisfied with the quality of service.
The seasonal nature of the hospitality and tourism business in many countries also creates a beneficial environment for outsourcing. While a company located in Greece might be able to run with a very small number of employees from late fall to early spring, it will require many more workers during other seasons. Outsourcing can be a useful solution for this issue because it ensures adequate staffing levels during busy periods while enabling companies to keep the share of permanent workers to a minimum. According to research, this allows hospitality and tourism companies to control the costs and avoid financial losses during quiet seasons. Hence, outsourcing is relevant in this context because it helps companies to control employment costs.
Nevertheless, socio-cultural challenges may influence the businesses’ success with outsourcing practices. First of all, outsourced staff may perform poorly, as the employer has less leverage over them. As a result, “it may be more difficult to maintain customer service standards”, leading to customer dissatisfaction. Secondly, high reliance on outsourcing might cause a negative social response since it means fewer opportunities for full-time permanent workers. Thirdly, outsourced staff might differ from permanent staff in terms of culture and work ethics, which could weaken communication. Based on these considerations, managers in the hospitality and tourism industry should only apply outsourcing when necessary. They should also ensure that outsourced staff have proper training and motivation.
To conclude, outsourcing is indeed beneficial for hospitality and tourism organisations. It provides them with increased flexibility and allows them to provide excellent service even during busy periods. It also allows controlling employment costs, leading to improved financial performance. However, managers should be aware of the socio-cultural issues related to outsourcing and take those into account when planning to outsource workers.