Predicting career success in the hospitality industry of Cyprus: a competency-based approach

ABSTRACT

In today’s highly disruptive business environment, the development of a new set of specific key competencies is crucial for career and organizational success. Based on a survey study carried out within the context of the hospitality industry of Cyprus, this paper proposes a novel framework for competency development, grounded in the insights of hospitality industry professionals. The study addresses the gap in existing competency frameworks in light of recent technological advancements and sectoral restructuring. The proposed model encompasses six key core competency categories: communication, operational knowledge, cultural diversity, human resource management, leadership, and information technology; each integral to organizational performance and individual career success. The resulting framework offers invaluable guidance for educators, hospitality industry managers, and government institutions in designing effective educational programs, thereby equipping hospitality management graduates with the necessary competencies for a successful career in a turbulent digital globalized economic realm.

KEYWORDS:

• Hospitality management
• tourism industry
• competency development
• education
• career management
• human resource management

1. Introduction

In the contemporary interconnected world, hospitality and tourism have emerged as crucial drivers for global economic activity. Particularly, they have proven to be significant sources of employment and opportunities for career advancement. As the World Travel & Tourism Council (WTTC) reports WTTC (2021), travel and tourism are leading contributors to job creation worldwide, adding 10.4% (equivalent to USD 9.2 trillion) to the global GDP and accounting for 10.6% (or 334 million) of total global employment. This underscores the substantial role that the hospitality industry plays in fostering economic development and wealth generation, highlighting their critical contribution to both global employment and GDP.

Specifically, for the case of Cyprus, the economic well-being is almost entirely dependent on the hospitality and specifically the hotel industry. Success in this sector, and consequently economic growth and development, hinges on the existence of competitive hospitality enterprises. These should be efficient and effective in delivering high-quality products and services. Being a labor-intensive sector, the hospitality industry, demands a workforce that is well-trained and equipped with the right competencies to deliver high-quality and productive services. However, this is a great challenge as the rapidly changing business environment, driven by significant advancements in technology and major sociocultural shifts, necessitates the acquisition of new skills and competencies. These key competencies must be continuously re-evaluated to align with the current and future demands of the industry. Thus, identifying and evaluating such competencies is crucial for aiding managers in the processes of human resource selection, development, and career path mapping and for the overall organizational performance.

Reflecting on these observations, Alexakis and Jiang (2019) noted that the hospitality industry’s rapid growth and its rising prominence in the global economy have attracted significant attention. The business environment of the industry is characterized by high competition and rapid changes due to factors such as ongoing technological advancements, increasing globalization, labor migration, multiculturalism, multiethnicity, epidemics and pandemics, and proliferating geopolitical conflicts. These dynamics present numerous challenges for educators in hospitality and related programs. The major challenges include how to meaningfully integrate technology into classrooms and programs, ensure program currency and relevance, and, most importantly, prepare students with the knowledge and skills they need for success in this ever-evolving industry, along with providing a foundation for lifelong learning (Vatanartiran & Karadeniz, 2015).

Amidst ongoing discussions, specialists express diverging viewpoints on the essential skills and competencies needed for professionals in the hospitality industry. Such competencies, deem vital for the success of hospitality management graduates spanning a wide array encompassing leadership skills, decision-making, diplomacy, personnel management, resilience, change adaptability, interpersonal sensitivity, adherence to professional and ethical standards, excellence in guest relations and service quality, creative and analytical problem-solving, aptitude in human relations, financial insight, as well as proficiency in oral and written communication and technical computer skills (Almeida et al., 2021). This broad spectrum of competencies has ignited a debate on the optimal path for the development of educational programs. Particularly, while some experts push for the creation of specialized courses aimed at honing technical skills, others advocate for a stronger focus on liberal arts courses to enhance general management and interpersonal capabilities (Suh et al., 2012).

The identification of how these competencies directly contribute to career success, especially amidst the evolving business landscape, often remains insufficiently addressed. Thus, the systematic inquiry into how competency development correlates with career advancement – a factor closely linked to the success of organizations – is of paramount importance. Understanding this relationship is essential for aiding hospitality industry graduates in acquiring a core set of vital skills, thereby facilitating their career growth and achievement.

Specifically, this study’s purpose is to identify such key competencies and their correlation with career success within the context of the hospitality industry of Cyprus. The ultimate goal is to develop a comprehensive competency framework that aids hospitality management schools in crafting relevant educational programs, supporting graduates in career planning, assisting current employees in skill enhancement for advancement, and helping hospitality enterprises in devising effective training strategies. This framework is expected to significantly contribute to the sustainability and growth of businesses in the hospitality sector.

1.1. Specific aims and objectives

In the dynamic realm of hospitality and tourism, conducting research that bridges existing knowledge gaps – particularly in understanding how individuals adapt to their career roles – is an imperative task. This paper aims to offer strategic guidance and a structured framework for the design of effective hospitality management programs in universities and colleges, addressing the identified gap in the current literature. The study endeavors to develop an index of critical competencies for hospitality program providers, thereby equipping undergraduate students with the necessary skills to meet the evolving demands of the hospitality sector. The specific objectives of this study are as follows:

1. Identification of vital key competencies: to discern a set of fundamental competencies crucial for success in the hospitality sector, as perceived by industry professionals. This involves not only listing these competencies but also assessing their relative importance within the industry.

2. Classification of the main competencies via factor analysis: carry out exploratory factor analysis on the collected survey data, aiming to uncover the underlying competency categories and dimensions that characterize hospitality industry competency variables. This statistical approach will help in understanding the structure of these competencies and their interrelations.

3. Development of a multiple regression competency analysis framework model: this model would clarify the main interrelationships between key competencies and career success. Particularly the aim is to provide insights into how different competencies influence career progression within the hospitality industry.

2. Literature review

This section thoroughly examines the existing knowledge on the development of competencies within the hospitality industry, focusing on their evolution and relationship with career success. Specifically, the review investigates how competencies in the hotel sector have developed over time and their potential impact on career trajectories in the industry. Key themes covered include the changing nature of required competencies due to technological advancements, globalization, and sociocultural shifts.

The following subsections delve into various research studies that have contributed to our understanding of competency development in hospitality. It highlights how these competencies are perceived by industry professionals and their significance in academic curricula. The review also addresses the ongoing debates in academia and industry regarding the balance between technical skills and broader managerial competencies. It examines different perspectives on the future direction of hospitality education and the need for programs that effectively blend practical skills with a solid theoretical foundation.

Finally, the review identifies gaps in existing research, particularly in the contextual application of these competencies in diverse environmental conditions. It underscores the need for continuous reevaluation of these competencies in the dynamic hospitality industry and suggests areas for future research, including the exploration of the direct impact of these competencies on career advancement and organizational success. The synthesis of the literature culminates in a critical analysis that sets the stage for the current study, positioning it within the broader context of hospitality competency research.

2.1. Competency development and career success in the hospitality industry

Despite a rich tapestry of research on competency development, a nuanced understanding of how these competencies align with the prevailing educational framework remains elusive, particularly within the hospitality sector. Moreover, in economies heavily reliant on tourism, such as Cyprus, forging a robust linkage between industry and academia is not just beneficial but imperative for enduring success and growth (Antonakakis et al., 2019). For development programs to truly resonate, they must be deeply rooted in the practical realities and exigencies of hospitality professionals, while also embracing the burgeoning opportunities presented by technological innovations and the evolving global socio-cultural landscape. The intricate relationship between competency mapping, workforce attributes, and educational paradigms warrants a thorough exploration. Concurrently, there is a compelling need to evaluate and position these competencies in relation to the pivotal factors underpinning success in the hospitality domain (Marneros et al., 2021).

The conceptualization of job competencies, defined as pivotal activities and skills required for specific roles (Clifford, 1973), remains central to managerial effectiveness. Subsequently, research by Tas et al. (1996) competent managers leverage leadership skills across a spectrum of activities, including but not limited to, facilitating tasks, influencing colleagues, coaching, problem resolution, and contract negotiations. However, the most notable research endeavors in the domain of competency development within the hospitality industry encompass a range of studies that illuminate various aspects of this critical area; Suh et al. (2012) conducted a study aiming to precisely identify core competencies crucial for the success of future managers in the hospitality sector. Additionally, Sisson and Adams (2013) endeavored to pinpoint the essential competencies, investigating whether there were differences in competencies required for managers in lodging, food and beverage, and meeting and event management.

Recent studies have explored various dimensions of competency development within the educational programs of Hospitality and Tourism Management. For instance, Jack et al. (2017) delved into the cultivation of management competencies at a four-year higher education institution located in the Midwest of the United States. Dolasinski and Raynolds (2019) undertook a study to uncover the crucial leadership competencies for achieving success in the hospitality industry. Meanwhile, Lertwannawit et al. (2009) evaluated how career competencies correlate with career success within Thailand’s tourism and hospitality sectors. Ahmad et al. (2019) conducted research on the interplay between career competency, resilience, and success, highlighting career resilience’s mediating role. Hennekam (2015) focused on the impact of competencies, social skills, and lifelong learning on career satisfaction and success, especially among individuals over 50. Wadongo et al. (2011) aimed to identify the key generic managerial competencies emerging within the Kenyan hospitality industry.

Turning attention to what the industry values, Chi and Gursoy (2009) honed in on the pivotal factors for career success. Predvoditeleva et al. (2019) delved into the competencies Russian hospitality employers anticipate from hospitality master’s program graduates, comparing these expectations against the prevailing academic standards in Russia. Otoo and Mishra (2018) probed into how employee competencies serve as a bridge between HRD practices and the performance of organizations. Alexakis and Jiang (2019) analyzed hospitality managers’ views on the competencies of hospitality students, championing a consistent focus on crucial communication abilities and advanced cognitive skills such as critical thinking and problem-solving. Lastly, Weerakit and Beeton (2018) investigated the elements that shape leadership within Thailand’s hospitality industry, discovering that interpersonal skills are considered the most critical competency for managers in the Thai hospitality domain. Table 1 summarizes the above findings highlighting the fourteen most noteworthy competence studies in the hospitality sector. Specifically, Table 1 describes the population, sample size, instrumentation process, and the main findings.

Table 1. Competencies related studies in the hospitality industry (presented in chronological order).

Author(s)	Population	Country	Instrument Used	Primary Findings
Lertwannawit et al. (2009) n = 800	Restaurant, Hotel, Travel and Tour Operation and Airline Business	Thailand	Study Specific	The results indicate that career competencies have moderately positive relation with career success. Furthermore, three career competencies, i.e. computer and language skills, team work and leadership, and tourism and hospitality knowledge and skills have effect on career success.
Nolan et al. (2010) Professionals n = 41 Graduates = 33	Hospitality Employers	Ireland	Study Specific	The competencies consistently regarded as important across both samples related to interpersonal and professional knowledge skill domains. However, a number of gaps were evident with regard to satisfaction with how the education experience prepared graduates for careers in the industry.
Wadongo et al. (2011) N = 160	Hospitality Managers	Kenya	Study Specific	Several critical generic management competencies are emerging in the Kenyan hospitality industry. However, there is a gap between utilization and importance of managerial competencies in Kenya. Managers do not value human relations competencies.
Suh et al. (2012) n = 296	Hospitality Managers and Students	Southeastern USA	Study Specific	Factor analysis generated six dimensions of core competencies: hospitality skills, interpersonal skills, supervisory skills, food and beverage management skills, leadership, and communication skills.
Sisson and Adams. (2013) n = 520	Industry Professionals and Hospitality Educators	USA/ Worldwide	Study Specific	Of the competencies deemed essential, 86% were soft competencies. Between functional work areas, no difference in importance was found for 76% of the competencies. The results indicate that programs should stress teaching hospitality students’ soft competencies in favor of hard competencies.
Hennekam (2015) n = 920	Hospitality Employees	Netherlands	Study Specific	The survey showed a positive relationship between the competencies and career success and career satisfaction However, the interviews revealed that not all older workers perceived the need to continuously stay up-to-date as positive, pushing them into retirement.
Bharwani and Talib (2017) Secondary Research	Hotel General Managers	India	Study Specific	This study proposes a leadership competency model for hospitality organisations in the form of a 43-item competency framework for hotel general managers categorised into four broad dimensions – cognitive competencies (knowledge), functional competencies (skills), social competencies (attitudes and behaviours) and meta competencies (motives and traits).
Jack et al. (2017) n = 153	Hospitality and Tourism Management Students	United States	Study Specific	The findings suggest that due to the disparate needs of students, educators and employers, discrepancies do exist between stakeholder perspectives concerning the most beneficial way to facilitate programs.
Predvoditeleva et al. (2019) n = 18	Hotel Industry Experts	Russia	Study Specific	The findings of the study showed that, there was a discrepancy between the educational standards and new professional standards applied in the hotel industry. Therefore, the need to monitor and match educational outcomes with industry requirements appears to be one of the main developmental problems in the Russian hotel sphere.
Alexakis and Jiang (2019) n = 206	Hospitality Managers/Students	United States	Study Specific	The results suggest that the emphasis on essential competencies of communication skills and higher learning skills such as critical thinking and problem solving should remain.
Dolasinski and Raynolds (2019) n = 1250	Hotel Managers	United States	Study Specific	Six hotel leadership competency factors were identified including soft skill competencies, leadership competencies, interpersonal competencies, organizational competencies, relational competencies, and self-management competencies. Additional findings revealed a difference in perspective between males and females regarding the leadership competency factor.
Marneros et al. (2020) n = 186	Hospitality Professionals	Cyprus	Study Specific	The findings that emerged from the present study show that the industry has a strong preference to hire people with “soft” people management skills and strong practical professional skills.
Stefanini et al. (2021) n = 412	Tourism and Hospitality Students	Brazil	Study Specific	The results indicated that the education competencies presented in this study involve education interdisciplinarity, teamwork, student skills, and student engagement in T&H. The study contributes to an understanding of the process of identifying and developing the skills that are required for T&H professionals.
Shariff and Abd Razak (2022) n = 116	Hospitality Professionals	Malaysia	Study Specific	The findings revealed that 69 competencies are required within the industry and all the competencies are relevant for hospitality graduates’ future employability. Additional findings, showed that the competencies were finalized under clusters, namely, Workplace, Personal Effectiveness, Management and Academic.

Acknowledging the broader context, it is crucial to recognize major frameworks pertaining to competency development in the hospitality and tourism sector. The Organization for Economic Co-operation and Development (OECD) report on policy approaches to skills development in tourism is particularly instructive. The OECD (2020) document delineates skills required in the tourism labor market, categorizing them into five distinct areas: (i) leadership and management skills fostering operational and team management capabilities; (ii) communication and foreign language skills enhancing cultural awareness and interaction with tourists; (iii) social skills crucial for service excellence; (iv) information communication and technology (ICT) skills for integrating new technologies into daily operations; and (v) financial management skills for effective handling of financial transactions.

Particularly, regarding ICT, the European Commission (EC, 2019) has pinpointed enduring skill shortages, especially in the realm of interpersonal communication and digital competencies. Within this direction Papageorgiou and Marneros (2023) carried out an investigation to reveal the essential digital marketing competencies for success in business organizations. By ranking a set of 35 competency items, it was shown that entrepreneurs and industry professionals place a higher level of importance on some competencies related to Search Engine Optimization and digital content. As a result, a taxonomical analysis is proposed based on a set of key success digital marketing competencies. Furthermore, a survey by the World Economic Forum (WEF, 2018) among businesses in the tourism sector unveiled emerging technological trends expected to gain widespread adoption by 2022, such as big data, cloud computing, the Internet of Things, machine learning, and augmented/virtual reality. These advancements are anticipated to deeply impact the skills required by professionals in the tourism industry. There is an increasing emphasis on the necessity for lifelong learning and skill development, particularly in areas less prone to automation like creativity, emotional intelligence, and critical thinking, to stay relevant in the rapidly changing job market.

Given this backdrop, the hospitality industry, with its emphasis on customer interaction, must balance technological advancements with the human element, making training in consumer behavior and technological processes essential (Adhikari & Bhattacharya, 2016). The significance of human interaction and interpersonal relationships in delivering satisfying tourist experiences cannot be overstated. While technological advancements can facilitate and enhance customer interactions, they also pose challenges and complexities. Hence, investing in both technological process improvement and the study of consumer behavior is paramount. Training and development of human resources to optimize these interactions are essential (Marques, 2023).

A particular study by Carlisle and colleagues in (2023) emphasized the deficit in social skills within the European tourism industry, highlighting the critical need for educational programs to be closely tailored to meet the expectations for superior customer experiences. This research points to the vital role of extensive training in social skills to ensure that education is in sync with the needs for high-quality customer interactions and adherence to principles of sustainable tourism. According to recent data from Eurostat (2022) and reports by Weforum (2022), the hospitality and tourism industry significantly contributed to the economic growth of the EU, showing robust recovery and returning to pre-pandemic levels of tourism demand despite facing temporary shutdowns due to the pandemic. However, there is a notable labor shortage within the sector across Europe, presenting a challenge that needs to be addressed.

Despite the pandemic’s temporary closures, careers in Tourism and Hospitality (T&H) have become less attractive to students, leading to recruitment and retention challenges in the post-Covid era. Understanding students’ perceptions of careers and influences on their career planning is critical to addressing this talent shortage (D. Wang et al., 2023). Providing training and education to the sector is crucial not only for post-Covid recovery but also to ensure that employees are equipped with the necessary social skills to support the ongoing digital and green transformation, as well as to foster effective social relationships. Therefore, identifying the skills gap from both public and private stakeholders’ perspectives is essential.

The interplay between the industry and academic institutions is a crucial factor in shaping the professional growth of students. Cooper and Shepherd (1997) emphasized that a collaborative and beneficial relationship between these two spheres significantly enhances the professional development avenues for students. The core aim of management education, as outlined by Hansson (2001) and Christou (2002), is to prepare and provide the industry with graduates of high caliber, possessing the most pertinent management skills. Research into the essential competencies for career success underlines the importance of broad and adap skills, including leadership, effective communication, critical thinking, and proficiency in human resource management (Tas, Labreque & Clayton 1996; Gustin, 2001; Kay & Russette, 2000). Gustin (2001), in his study in the United States, highlighted the significant impact of fostering critical thinking skills, preparing students more adequately for the modern, often complex business environment. Similarly, Moscardo’s (1997) research in Australia demonstrated the critical role that developing problem-solving abilities and creative, adaptable thinking plays in enhancing management competencies within hospitality management education.

Moreover, Connolly and McGing (2006) highlighted the hospitality industry’s preference for hiring candidates who possess both strong practical abilities and soft skills in people management. They also emphasize that for an educational program to remain relevant and successful, it must be closely aligned with the needs of the industry. This alignment can be achieved by increasing the availability of practical placements, enhancing hands-on training, and incorporating more case studies. Furthermore, involving industry experts in the development of course content as advisors is crucial. Zopiatis and Constanti (2007) pointed out that students often enter the industry with unrealistic expectations, which leads to high dropout rates. Addressing this issue through internships or job placements can help realign student expectations with industry realities and decrease dropout rates.

Raybould and Wilkins (2005) delved into how well the expectations of hospitality managers align with the perceptions of students. The findings from this research are crucial for developing educational programs and for devising both internal and external communication strategies for academic staff. The research into the competencies needed in the hospitality industry, especially within the hotel sector, has evolved significantly since the 1990s (Chung, 2000). Hsu et al. (1992) identified key competencies necessary for a successful hospitality career, including customer satisfaction, personnel management, communication, adherence to ethical and professional standards, decision-making, and fostering positive workplace relationships.

Acknowledging the shift in industry prerequisites, Enz et al. (1993) conducted research aiming to uncover the foundational elements for success, identifying leadership, the ability to pinpoint problems, along with organizational and writing capabilities, as crucial skills. The discourse around tourism and hospitality highlights the urgency for skills that are global in perspective, entrepreneurial in nature, and visionary, enabling managers to tackle the complexities of the 21st century (Su etal., 1997). There’s a consensus that the curriculum for tourism and hospitality management education should prioritize leadership skills to adequately prepare future managers for the evolving business environment (Kay & Russette, 2000).

Diving into management skills, studies by Okeiyi et al. (1994), Ashley et al. (1995), and Breiter and Dements (1996) investigated the significance of a broad understanding of management. Okeiyi and colleagues (Okeiyi et al. 1994) assessed the essential food and beverage competencies for hospitality management graduates, finding that relational and managerial abilities were prioritized over technical skills. Breiter and Dements (1996) explored hotel and restaurant managers’ perspectives on crucial managerial skills for success, highlighting leadership, communication, and fostering employee relations as paramount.

In Korea, Chung (2000) segmented competencies into six dimensions to evaluate their impact on the career success of alumni from hospitality management programs. The study unveiled that managerial acumen was just as critical as technical prowess. Kay and Russette (2000) sought to identify specific competencies required across various management functions and levels, including leadership, interpersonal, technical, and creative skills, underscoring the supreme importance of leadership skills, especially those focused on customer orientation. “Working knowledge of product-service” and the ability to “adapt creatively to change” were identified as essential for all management roles for the first time.

Focusing on Taiwan, L. L. Wang (2001) investigated the professional competencies necessary for front-house employees in the food and beverage sector, highlighting language abilities, professional demeanor, and composure as essential. Tsai et al. (2006) aimed to identify the competencies needed by chain restaurant managers, discovering that 46 competencies were deemed most crucial, with an additional 27 considered very important. Moreover, crisis management and marketing management skills emerged as the most valued competencies for prospective managers.

Tesone and Ricci (2005) conducted a study involving senior hiring executives in Orlando, Florida, which provided insights into hiring preferences within the hospitality and tourism sector. The research revealed that attitude is the primary consideration for hospitality managers when making hiring decisions, followed by specific knowledge and skills. Moreover, interpersonal communication abilities were prioritized over productivity and technical skills. In a related study, Jauhari (2006) investigated the competency requirements within hospitality management education in India. The research emphasized the importance of collaborative efforts between educational institutions and the industry, particularly in the continuous development of workforce skills.

Caiyod et al. (2015) extended the discourse by examining the determinants affecting the job market prospects of recent graduates, emphasizing the significance of soft skills and adaptability. Dhaliwal and Misra (2020) synthesized findings from research spanning over three decades to identify crucial competencies in the hospitality sector, encompassing leadership, problem-solving, teamwork, interpersonal skills, effective communication, personal growth, customer service, adherence to professional and ethical standards, organizational skills, a blend of soft and hard skills, decision-making, and technological proficiency. Yuan et al. (2017) outlined six essential areas of managerial competency for hospitality personnel in India, including self-management, leadership and communication, operational efficiency and decision-making, comprehension of legal and interpersonal aspects, critical thinking, commitment to career advancement, conflict resolution, and stress management. Meanwhile, Espellita and Maravilla (2019) pinpointed seven competencies vital for employability in the Philippine hospitality sector, including front office operational skills, leadership and communication prowess, teamwork, critical thinking, practical experience, and strategic planning abilities.

It is important to note that, the ultimate aim of hospitality management is to maximize customer satisfaction and deliver the best possible customer experience. Specifically, a study by Papageorgiou et al. (2021) revealed that colleges and universities offering hospitality and tourism programs must readily support the cultivation of core competencies approved by professionals in the hospitality industry. Furthermore, educational programs should support learning in new areas such as digital skills and cultural diversity by providing a greater focus within their program on aspects such as digital marketing. It is no wonder that new small businesses, such as Airbnb, disrupt the hospitality industry and become giants in a matter of months by applying new digital skills and technology resulting in new successful business models.

Further, Marneros and Gibbs (2015) noted that hospitality management programs cover both professionally oriented courses (such as room pricing, cost control, accounting, scheduling) and soft skills crucial for professional behavior and interactions. The development of soft skills, including critical thinking, adaptability, effective communication, and creativity, is seen as essential for success in the 21st century and is a core component of hospitality management education (Marneros et al., 2020). Understanding the competency expectations of practicing hospitality managers for college and university graduates is vital for hospitality professionals and educators. In an earlier attempt Ricci (2010) aimed to identify the competencies necessary for hospitality management courses in Cyprus, helping educators align their programs with industry needs.

The hospitality industry of Cyprus is challenged by high staff turnover rates. To combat this, operations managers, HR professionals, and hospitality educators are working to identify essential job competencies for future managers, to improve hiring practices, and recruit from educational programs that produce graduates with strong potential in the hospitality industry (Ghiselli et al., 2001). Within this endeavour this research study ultimately aims to strengthen the ties between academia and the hospitality industry in Cyprus, thereby building trust among stakeholders and enhancing mutual understanding of their roles, responsibilities, and expectations.

2.2. The case of cyprus

While numerous studies have highlighted the importance of competency development in the hospitality industry, the unique challenges faced by Cyprus necessitate a closer examination of the problem. Acknowledging the perspective of industry professionals is a fundamental initial step in identifying competencies and designing effective educational programs. Moreover, the contextual nuances must be considered, as theories applicable in one country may not hold true in another. This necessitates conducting verification studies across diverse contexts to ascertain their validity.

Within the context of Cyprus, research focusing on competency development by hospitality educational institutions, particularly tailored to the needs of the industry, has been quite limited. Therefore, a study in this area is crucial, providing the foundational knowledge for educational institutions to effectively design hospitality management courses that cultivate the precise competencies demanded by the sector. Training aimed at competency development not only facilitates the individual trainee’s career success but also contributes to the prosperity of the hospitality enterprise and the educational institution.

Cyprus presents a unique case with its own set of challenges and particularities. The hospitality sector in Cyprus has experienced high employee turnover, especially following the country’s accession to the European Union. Some analysts suggest that this high turnover has led to a decline in service quality within the industry. Operations managers, human resource (HR) professionals, and educators in the hospitality field are collectively focusing on reducing turnover rates. Their strategies include pinpointing critical job competencies required for future managerial roles, enhancing recruitment processes, and targeting graduates from prestigious institutions known for preparing students with significant capabilities for success in hospitality management.

A recent survey conducted by International Monetary Fund (IMF, 2021) states that Cyprus faces numerous challenges, such as seasonality and staff shortages, exacerbated by the COVID-19 pandemic, the war in Ukraine, and its proximity to conflict zones like the Israel-Gaza war. These factors bestow a distinctive character on the Cyprus hospitality industry. Amidst this challenging business environment, local educational institutions are committed to educating the next generation of hospitality professionals, aiming to alleviate some of the current difficulties. This prospective study endeavors to assist hospitality management institutions in Cyprus in developing graduates with high potential for career success.

This research was aimed at reinforcing the bond between academic circles and the hospitality sector in Cyprus by pinpointing competencies vital for both educational bodies and industry experts. Additionally, it endeavoured to cultivate trust among stakeholders, thereby deepening their comprehension of each other’s duties, obligations, and expectations. Hospitality education, bolstered by 10 universities and 25 colleges within Cyprus, constitutes a fundamental component of the national economy, a fact highlighted by the Department of Higher Education in 2023. These institutions are instrumental in supporting both the domestic economy and the global tourism industry by grooming the forthcoming workforce for the hospitality and tourism sectors.

Education should be viewed as a continuous journey rather than a final destination. The dynamic and competitive nature of the hospitality sector necessitates a move away from trial-and-error learning methods. As G. Martin and Staines (1994) aptly stated, “A successful future for hospitality students means a successful future for the hospitality industry.” Therefore, the development of the hospitality industry in Cyprus is integral to a robust Cypriot economy. Notably, the hospitality industry contributes up to 18% of Cyprus’s GDP (IMF, 2021), indicating the potential for job creation within the Cypriot Hospitality and Tourism Industries. Accordingly, hospitality educators should adapt their program curricula to meet the evolving job requirements.

In Cyprus, hospitality management education often aligns with either the European approach, prioritizing technical skills, or the American approach, which emphasizes strategic management and leadership. However, the distinctive cultural and structural nuances of Cyprus’s hospitality industry necessitate a tailored application of these models. This study on competency development within the Cypriot context provides important perspectives for refining educational curriculums in regions sharing similar traits, thereby ensuring a more effective preparation of students for the unique challenges and opportunities within their local hospitality sectors.

3. Methodology

3.1. Research design

The methodology for this research includes a structured approach consisting of sampling, the use of instruments, gathering data, and analyzing it. The primary goal is to examine and pinpoint the competencies predictive of career achievement in the Cyprus hospitality sector. This exploration into competencies and skills prompted the creation of research questions and hypotheses about various interrelated factors.

In pursuit of these objectives, a comprehensive survey instrument was meticulously crafted. This tool was designed to accurately gauge the expectations, perceptions, and opinions of hospitality industry professionals. Rigorous efforts were undertaken to ensure the statistical significance of the findings, with the ultimate goal of developing a robust and valid predictive framework. This framework aims to encapsulate the key competencies instrumental in shaping successful career paths within the dynamic context of the hospitality sector.

3.2. The sampling process

This research focused on industry professionals across 158 hotels in Cyprus, including a mix of 22 five-star, 57 four-star, and 79 three-star properties. The study specifically targeted 158 managers and 300 assistant managers from key departments such as front office, food and beverage, and room divisions, acknowledging their integral role in influencing the guest experience. To address the challenge of achieving a sufficient sample size, a common issue in hospitality research, the study included 158 establishments. Each of these was contacted via email with a survey questionnaire, directly addressing General Managers and department heads. This approach was based on the understanding that employees in these departments often start in entry-level roles and, through gaining experience, progress to managerial positions, thereby acquiring a broad knowledge of hospitality operations.

3.3. Instrumentation

The primary tool utilized in this research was a self-administered structured questionnaire. Prior to its deployment, the questionnaire underwent a pilot test with a sample of 20 professionals, leading to subsequent refinements. This survey instrument aimed to capture the perspectives of various industry groups (hospitality managers, department heads, educators) regarding job competencies. A mixed method of distribution, encompassing both postal and face-to-face channels, was employed to administer the questionnaire to hospitality professionals. Respondents were presented with a series of closed-ended questions, requiring them to select from predefined options. For the study’s objectives, a bespoke questionnaire was developed, grounded in 40 competency items that emerged from the literature review. The questionnaire was structured into three distinct sections to probe professionals’ perceptions regarding educational courses and competencies requisite in the hospitality industry.

3.3.1. Section A: competencies required in the hospitality industry – perception (desired)

In Section A, professionals from the hospitality industry were solicited to delineate the requisite level of competencies necessary for entry-level graduates entering this sector. This assessment was facilitated by prompting respondents to circle an appropriate response on a scale ranging from one to five, corresponding to the level of importance, for various competency-related statements. Forty such statements were utilized to gauge this, encompassing a wide array of competencies, including but not limited to: acting ethically; effective communication with clients and customers; managing guest issues with empathy and understanding; establishing and maintaining quality standards for employees; upholding professional demeanor; possessing in-depth knowledge of products and services; effective utilization of front-office equipment; conducting weekly, monthly, and annual financial and statistical analysis; and innovating work methodologies. These insights are pivotal in developing training and development programs tailored to the specific needs at various management levels. The competencies identified will serve as a foundational framework for the design of such targeted training initiatives.

3.3.2. Section B: competencies possessed by graduate students - (actual)

Section B of the survey sought to capture the actual competencies possessed by students at the point of their entry into the hospitality industry. Similar to Section A, industry professionals were asked to rate the level of competencies exhibited by graduate students on a scale from one to five, with the scale representing the degree of competency attainment. The same set of 40 competency statements used in Section A was employed here to maintain consistency in the evaluation process. The data gathered from this section is instrumental in identifying the gap between the desired and actual competencies of graduates, thereby informing the necessary adjustments in educational and training programs to better prepare students for the dynamic demands of the hospitality industry.

3.3.3. Section C: demographics and other general information

In Section C of the survey, industry professionals were requested to provide responses to a series of demographic and career-related questions. This component was integral, particularly for the purpose of discerning significant distinctions among various demographic groups. The questionnaire in this section encompassed inquiries regarding age, gender, and years of employment. Additionally, professionals were prompted to appraise their careers in the hospitality industry by indicating their perceived level of success.

Post data collection, an exploratory factor analysis was undertaken to pinpoint the factors or dimensions that constitute a generic set of competencies within the hospitality industry. This was followed by a multiple regression analysis, aimed at unraveling the relationship between the aforementioned competencies and actual career success in the industry. The culmination of this analytical process was the formulation of a framework that predicts career success based on these identified generic competencies.

3.4. Data collection

The distribution of survey instruments to 450 industry professionals was initiated just prior to the onset of the pandemic (2018–2019). Of the 480 mailed survey packets, a total of 210 completed surveys were returned, culminating in a response rate of 44%. Out of these, 186 surveys were deemed usable for analysis, thereby adjusting the effective response rate to 41.3%. It is noteworthy that to achieve this relatively high response rate, follow-up correspondences were dispatched to non-respondents approximately three weeks after the initial mailing. This follow-up was a pivotal step in enhancing the overall response rate for the survey.

3.5. Data analysis

The data analysis phase of the study employed various inferential statistical methods to interpret survey responses. These methods included t-tests, analyses of variance (ANOVAs), exploratory factor analysis, and multiple regression analysis. Exploratory factor analysis was utilized to identify the underlying dimensions organizing industry competency and hospitality management program variables. Multiple regression analysis was then conducted to examine the relationship between industry professionals’ perceptions of essential competencies and career success. Additionally, Independent Sample t-tests and One-Way ANOVAs were carried out to analyze data based on perceived competency importance, considering the demographic characteristics of the respondents.

4. Results

This segment delineates the statistical analysis of data garnered from the competency survey executed within the hospitality industry in Cyprus. The analytical approach encompassed descriptive statistics, factor analysis, and regression modeling. Through this comprehensive analysis, a robust framework was developed, capable of predicting career success predicated on a constellation of key competencies integral to hospitality management.

4.1. Descriptive statistics on the desired hospitality management competencies

In the preliminary phase of this study, a detailed statistical analysis was conducted to derive means and frequency distributions for the competencies as delineated by industry professionals. Table 2 encapsulates the most salient descriptive statistics pertaining to key demographic characteristics of the survey respondents, alongside variables related to job satisfaction and competency development. This provides a demographic snapshot of the respondents, encompassing gender, age, years of employment, functional areas within the industry, and educational level. The purpose of this analysis was to ascertain any significant variances in the perceptions of hospitality professionals regarding the importance of specific competencies. It is important to note that while frequencies for “no response” categories are included, these were not factored into the percentage calculations for respondents’ demographic characteristics.

Table 2. Respondents’ gender, age, years of employment, functional areas, major field, educational level, and recommend-to-others work in hospitality.

Characteristic	Number	Percentage	Characteristic	Number Percentage
Gender			Educational Background
Female	42	22,6	High School Graduate	15	8,1
Male	144	77,4	College/University − 2 year Diploma (Associated Degree, HND, etc.)	60	32,3
Total	186	100%	College/University − 4 year Bachelor (BSc, BA, etc.)	72	38,7
Age			Graduate Degree – Master’s Degree (MSc, MBA, MA, etc.)	36	19,4
20–30 years old	24	12,9	Post Graduate Degree (PhD, Doctorate, etc.)	3	1,6
31–40 years old	93	50	Other (please specify)	0	0
41–50 years old	42	22,6	No Response	0	0
Over 50 years old	27	14,5	Total	186	100%
No Response	0	0
Total	186	100%
Years of Employment			Functional Areas
Less than 5 years	18	9,7	Food and Beverage	72	39%
5–10 years	42	22,6	General Management	70	38%
11–20 years	75	40,3	Front office	29	16%
More than 20 years	51	27,4	Housekeeping	6	3%
No Response	0	0	Other	6	3%
Total	186	100%	Marketing and Sales	3	1%
Major Field			Would you Recommend work in the hospitality and Tourism sector to others.
Hospitality (hotel) Management	150	80,6	Yes	123	66.1
Travel and Tourism Administration	2	1,1	No	63	33.9
Business Administration	20	10,8	Total	186	100%
Culinary Arts Management	8	4,3
Other (please specify)	6	3,2
No Response	0	0
Total	186	100%

The total number of respondents from the hospitality industry was 186, which included 42 female (22.6%) and 144 male (77.4%) professionals. The predominant age group was professionals aged 31–40, making up 50% of the respondents. Regarding employment experience, the majority (40.3%) had accrued 11–20 years in the field. Educational qualifications varied, with professionals holding bachelor’s degrees (38.7%) forming the largest group, followed closely by those with a diploma or associate degree (32.3%). Notably, the majority of professionals (80.6%) specialized in hospitality management.

A significant finding was that 33.9% of the professionals responded negatively to the question of whether they would encourage their close acquaintances (children, relatives, friends) to pursue careers in the hospitality industry. This response is indicative of the relatively high level of dissatisfaction observed in earlier questions. The sample represented a wide spectrum of functional areas within the hospitality industry. As per Table 2, professionals primarily hailed from the “Food and Beverage” area, accounting for 39%, followed by “General Management” at 38%, “Front Office” at 16%, “Housekeeping” at 3%, with “Other” areas also at 3%, and a mere 1% from “Marketing and Sales”.

The educational background of the professionals surveyed in this study was noteworthy, with all respondents possessing college or university degrees. A significant majority of the hospitality experts, constituting 80.6%, held degrees in hospitality management, while 10.8% had degrees in business administration. This composition of the sample underscores that it consisted of individuals who are both educated and qualified in their field.

An intriguing aspect of the study was gaining preliminary insights into the professionals’ perceived level of career success within the hospitality industry. According to the data presented in Table 3, a majority of these hospitality professionals (59.7%) rated their career success as just above average. This finding is indicative of the underlying challenges present within the industry, which are explored in further detail in this paper.

Table 3. Hospitality professionals’ career success in the hotel industry.

Career success	Number	Percentage
No Success	6	3.2
Low Success	24	12.9
Medium Success	111	59.7
High Success	45	24.2
Total	186	100.0

4.2. Dimension reduction via factor analysis for deriving a set of generic competencies for the hospitality industry

In the pursuit of establishing a set of generic competency categories essential in the hospitality industry, exploratory factor analysis was conducted. As outlined in the methodology, industry professionals were engaged to evaluate an extensive range of 40 competency items, encompassing the breadth of skills required in the hospitality sector. From this comprehensive set, six factors emerged, each representing distinct skills relevant to hospitality management, together explaining a significant degree of variance.

The analysis employed Varimax Rotation with Kaiser Normalization Criterion. The Kaiser-Meyer-Olkin (KMO) test for sampling adequacy yielded a measure of 0.860, indicating the data’s suitability for factor analysis. Furthermore, Bartlett’s Test of Sphericity yielded a highly significant result (X2 (780, N = 450) = 7765, p < .0001), suggesting the correlation matrix of competencies is not an identity matrix. This significant outcome necessitated rejecting the null hypothesis of “no correlation”, highlighting the importance of dimension reduction in the analysis.

The factors extracted based on these 40 items, reflective of hospitality practitioners’ views on key competencies necessary for the industry, were determined using the eigenvalues criterion. As depicted in Table 4, these factors span a range of conceptual, technical, and human-related competencies, forming a set of generic competency categories useful for predicting performance and success in the hospitality industry. Notably, several items showed significant loadings on each of these extracted factors. The computation of Cronbach’s alpha for these competency items indicated an acceptable level of internal reliability. The six-factor solution accounts for 68% of the total variance represented by the 40 items.

Table 4. Factor (varimax rotation with Kaiser normalization) and descriptive analysis for the competency variables.

Factor Analysis					Descriptive Analysis – Importance
Factor Items	Loading	Eigenvalues	Percentage of Explained Variance	Reliability Alpha(Cronbach)	Mean	StdDev.	Rank(out of 40)	Overall Rank
Factor 1: Leadership and Critical Thinking (9 items)		16,858	42,145	.876	4.00	0.556		5
Directing and supervising the work of others	.749				4.17	0.744	20
Adapting to changing circumstances	.758				3.74	0.86	38
Developing Innovative ways to work	.572				3.87	0.713	34
Taking a chance of more job enlargement	.622				3.82	0.72	36
Building model and creative thinking	.568				3.88	0.801	32
Motivating employees to achieve desired performance	.623				4.26	0.807	13
Effectively manages life-threatening situations (e.g., fire, bomb threat, serious illness)	.656				4.05	0.999	28
Managing time to ensure productivity	.534				4.18	0.686	19
Staying informed about industry practices and new developments	.548				4.06	0.696	27
Factor 2: Information Technology and Financial Analysis (6 items)		2,781	6,952	.852	3.87	0.686		6
Forecasting future trends	.757				3.87	0.868	33
Using financial analysis techniques	.776				3.65	0.891	40
Analysing factors that influence the controllability of profits	.409				4.10	0.662	24
Using past and current information to predict future departmental revenues and expenses	.542				3.81	0.978	37
Analysing weekly, monthly, and annual financial and statistical reports	.623				3.68	1.034	39
Using front-office (computer) equipment effectively	.642				4.10	0.915	25
Factor 3: Human Relations – Communication (7 items)		2,490	6,226	.842	4.38	0.479		1
Communicating effectively with other employees	.677				4.51	0.583	6
Communicating effectively with clients and customers	.864				4.42	0.651	1
Managing guest problems with understanding and sensitivity	.710				4.5	0.727	2
Developing positive customer relations	.644				4.28	0.658	10
Communicates effectively both in writing and orally	.681				4.24	0.741	15
Working as a member of a team	.678				4.40	0.628	7
Anticipating guest wants and needs to provide service	.618				4.31	0.681	8
Factor 4: Interpersonal Communication – Cultural Diversity (5 items)		2,159	5,398	.710	4.13	0.464		3
Identifying and defining problems of guest relations	.618				4.12	0.705	23
Recognising and solving customer problems	.744				4.43	0.75	5
Enhancing socialisation and interpersonal relationships with employees	.504				3.84	0.734	35
Interacts smoothly with wide variety of people	.762				4.2	0.653	17
Promoting respect and appreciation for diversity and individual differences	.541				4.08	0.68	26
Factor 5: Human Resource Management (5 Items)		1,518	3,794	.770	4.09	0.616		4
Acting in an ethical manner	.776				4.27	0.729	11
Defining and setting up quality standards for employees	.654				4.25	0.852	14
Making decisions under pressure or in crisis situation	.673				4.15	0.808	21
Selecting and assigning personnel	.510				3.90	0.925	30
Appraising employee performance	.607				3.89	0.94	31
Factor 6: Professional Image and Operational Knowledge (8 Items)		1,404	3,511	.883	4.24	0.508		2
Maintaining professional appearance and poise	.740				4.47	0.664	3
Working knowledge of product-service	.600				4.27	0.709	12
Identifying and defining problems of operation	.410				4.13	0.627	22
Follows hygiene and safety regulations to ensure compliance by organisations	.631				4.44	0.757	4
Maintains professional and ethical standards in the work environment	.575				4.29	0.754	9
Knowing the realities involved in this type of work	.610				4.22	0.658	16
Knowing the basic terminology used in the industry	.548				4.19	0.679	18
Providing employees access to information	.625				3.92	0.857	29
Total Scale Reliability Alpha (40 Items)				.986
Total Percentage of Explained Variance			68,027

The six-key competency categories are the following: Human Relations and Communication; Professional Image and Operational Knowledge; Interpersonal Communication – Cultural Diversity; Human Resource Management; Leadership and Critical Thinking; Information Technology and Financial Analysis.

4.3. Multiple regression analysis

Subsequent to the factor analysis elucidated in the preceding section, the progression entailed the construction of a competency-based predictive model, instrumental for delineating career success within the hospitality industry. To this end, a comprehensive multiple regression analysis was employed, meticulously examining the interrelation between the requisite competencies and career success.

In this conceptualized model, “career success” is posited as the dependent variable, with the array of requisite competencies serving as the predictive (explanatory) variables. Table 5 delineates the results derived from the analysis of variance, a rigorous test of the regression model’s capacity to significantly forecast the outcome variable’s values. An initial step involved the execution of the Pearson correlation test, aimed at discerning any notable correlation coefficients between the predictor variables and the outcome variable. This analysis yielded a correlation coefficient (r = .360, p < 0.001), signifying a substantial correlation between the predictor variables and the dependent variable, namely, Career Success.

Table 5. Multiple regression: required competencies and career success.

Model	df	Sum of Squares	Mean Square	Pearson r	R Square	p
Regression	6	11.932	1.989	.360	.129	.000
Residual	179	80.354	.449
Total	185	92.286

The efficacy of this framework in predicting career success is partially substantiated by the R-square value of 0.129. This metric indicates that approximately 13% of the variance in Career Success can be explicated by the predictor variables. This statistical revelation, while not exhaustive, provides an insightful glimpse into the predictive dynamics at play, underscoring the significance of these competencies in shaping career trajectories within the hospitality sector.

The analytical outcomes delineated in Table 6 reveal that the competency dimensions of “Human Relations – Communication” and “Professional Image and Operational Knowledge” are paramount in the context of career success within the hospitality industry. The beta (β) coefficients serve as indicators of the relative influence exerted by these predictor variables. Specifically, “Human Relations – Communication” (β = .471) and “Professional Image and Operational Knowledge” (β = .474) demonstrate significant impacts on career success. These coefficients suggest that an emphasis on cultivating and advancing competencies in “Human Relations – Communication” and “Professional Image and Operational Knowledge” is likely to yield positive ramifications for career progression and achievement. This finding underscores the pivotal role these competencies play in shaping successful career paths in the sector.

Table 6. Required competencies that significantly predict career success.

Factors	Competency Dimensions	β	t	p
Factor 1	Leadership and Critical Thinking	−.111	−.528	.598
Factor 2	Information Technology and Financial Analysis	−.177	−1.112	.268
Factor 3	Human Relations – Communication	.471	2.419	.017*
Factor 4	Interpersonal Communication – Cultural Diversity	−.199	−.739	.461
Factor 5	Human Resource Management	−.039	−.234	.815
Factor 6	Professional Image and Operational Knowledge	.474	2.342	.020*

β: Standardized Coefficient.

*p < .05.

It is imperative to note that the other competency dimensions, namely “Leadership and Critical Thinking,” “Information Technology and Financial Analysis,” “Interpersonal Communication – Cultural Diversity,” and “Human Resource Management,” though exhibiting a lesser direct effect, play an instrumental and indirect role in career success. This framework lays the foundation for the formulation of effective educational programs, providing invaluable insights for developing specific competency categories to enhance the potential for career success in the hospitality sector. It serves as a unique tool for hospitality managers, educators, and other stakeholders, guiding business strategies towards achieving a sustainable competitive advantage.

5. Discussion

The analysis conducted in this study produced a framework with six competency dimensions, as shown in Table 6. Specifically, it is crucial for hospitality management graduates to develop skills in Leadership and Critical Thinking, Information Technology and Financial Analysis, Human Relations – Communication, Interpersonal Communication – Cultural Diversity, Human Resource Management, and Professional Image – Operational Knowledge. These competency categories, which emerged from factor analysis, are discussed and contrasted with the findings of other research studies in the following subsections.

5.1. Human relations and communication

The factor of “Human Relations and Communication,” as revealed through factor analysis, stands preeminent as the most vital competency category. This finding aligns with the universally acknowledged value of communication skills in the business realm, particularly in the labor-intensive hospitality industry, rendering this result noteworthy, albeit anticipated. The necessity of these skills transcends various roles within the hospitality sector, encompassing both front-of-house and back-of-house positions. Individuals in these roles invariably engage in teamwork and communicate not only with customers but also with fellow employees.

The “Human Relations and Communication” competency category is underscored by significant factor loadings from several critical elements. These include “communicating effectively with clients and customers” (r = .864), an aptitude that is fundamental in managing guest interactions. The ability to “manage guest problems with understanding and sensitivity” (r = .710) is equally critical, reflecting a nuanced approach to customer service. The competency of “effective communication both in writing and orally” (r = .681) underscores the multifaceted nature of communication in the hospitality industry. Further, being an “effective team member” (r = .678) highlights the collaborative aspect of work in this sector. The skill of “communicating effectively with other employees” (r = .677) is crucial for internal coordination and efficiency. Additionally, “developing positive customer relations” (r = .644) speaks to the importance of building lasting relationships with guests. Lastly, the ability to “anticipate guest wants and needs to provide service” (r = .618) demonstrates a proactive approach to customer satisfaction.

5.2. Professional image and operational knowledge

The factor of “Professional Image and Operational Knowledge” ascends to the second rank in terms of its significance within the hospitality industry. A cogent rationale for this prominence is that these attributes form the bedrock for delivering exemplary service to guests and foster the genesis of innovative work methodologies. In today’s fiercely competitive milieu, hospitality enterprises are impelled to explore novel business paradigms to enhance customer service while concurrently advancing their profitability objectives. It is imperative for the hospitality sector to recognize that operational knowledge and a professional image are the linchpins that reliably differentiate a prosperous hospitality enterprise. Hence, operational knowledge emerges as a fundamental component of hospitality operations and management.

Operational competencies stand out as essential attributes for a successful manager in the hospitality and tourism sectors. Echoing this viewpoint, various scholarly studies have also emphasized the significance of such competencies, including expertise in managing food and beverage (Ladkin, 2000), as well as understanding health, safety, and food hygiene standards. Other crucial operational competencies highlighted include the capability to ensure operational efficiency on a daily basis and to exceed customer expectations (Brophy & Kiely, 2002; Kay & Russette, 2000). These aspects are consistent with Nolan et al. (2010), who investigated the alignment between the expectations of employers in the hospitality industry and the competencies of graduates, uncovering that the most crucial competencies are often associated with interpersonal skills and professional knowledge.

Pertaining to this factor, significant loadings were identified in the following competency elements: “upholding professional appearance and composure” (.740); “adhering to hygiene and safety regulations to ensure organizational compliance” (.631); “facilitating employees” access to pertinent information’ (.625); “possessing an acute awareness of the realities intrinsic to this type of work” (.610); “demonstrating working knowledge of product-service offerings” (.600); “maintaining professional and ethical standards within the work environment” (.575); “understanding basic terminology endemic to the industry” (.548); “identifying and addressing operational challenges” (.410).

5.3. Interpersonal communication – cultural diversity

The third factor in the hierarchy of significance, as discerned in this study, is “Interpersonal Communication – Cultural Diversity.” In the milieu of the hospitality industry, the necessity of exemplary communication skills is paramount, augmented by the imperative of embracing and leveraging cultural diversity awareness to augment service quality and performance. Table 5 illustrates that industry professionals accord this domain an average mean score of M = 4.13. This factor garners heightened relevance in the contemporary context, particularly considering the impact of the influx of migrant labor in the hospitality industry, a sector notably dependent on foreign workers in Cyprus, as reported by the IMF in 2021.

The importance of interpersonal communication and cultural diversity awareness is emphasized in related academic literature. Jayawardena (2001) discussed the significant challenge faced by educators in designing and delivering international hospitality management programs. This involves understanding the diverse perspectives of a multicultural and multinational student body and preparing them for careers in the global hospitality industry. International educators in tourism and hospitality are thus striving to identify the most effective approaches for promoting quality service, managing a diverse workforce, and enhancing profitability. Solnet et al. (2016) underscored the essential skill set required of hospitality professionals to navigate the emotional complexities of a highly diverse tourism market. This includes addressing differences in nationality, culture, age, language, and social backgrounds among clientele.

Furthermore, the study conducted by Weerakit and Beeton (2018) in Thailand’s hospitality industry found that interpersonal skills are considered the most important competency for Thai hospitality managers. Factors such as age, managerial experience, and the type of hotel management significantly influence the perceived importance of leadership competencies. Additionally, Dolasinski and Raynolds (2019) investigated the leadership competencies necessary for success in the hospitality sector. They utilized a web-based questionnaire to gather insights from hospitality managers regarding current leadership competency requirements. Their research identified six key leadership competency factors, including soft skills, leadership abilities, interpersonal skills, organizational skills, relational skills, and self-management skills. These findings resonate with our own, emphasizing the industry’s preference for individuals with strong interpersonal skills and practical professional expertise.

Specific to this factor, noteworthy loadings are observed in competency elements such as “interacting seamlessly with a diverse range of people” (.762); “recognizing and addressing customer problems” (.744); “identifying and articulating guest relations issues” (.618); “fostering respect and appreciation for diversity and individual differences” (.541); and “enhancing socialization and interpersonal relationships among employees” (.504).

5.4. Human resource management

In the echelon of factors pertinent to the hospitality industry, “Human Resource Management” ascends as the fourth in terms of significance. As delineated in Table 4, industry experts bestow upon this domain an average mean score of M = 4.09, highlighting its crucial role. The pivotal nature of human resource management in this realm is further corroborated by parallel scholarly endeavors. The groundbreaking study conducted by Kay and Moncarz in (2004) rigorously examined the influence of knowledge, skills, and abilities (KSAs) on the overall success of managers in the lodging sector. Specifically, their research delved into competencies in human resources management, marketing, financial management, and information technology. Their findings unequivocally demonstrated that managers prioritize and demonstrate significant proficiency in human resources management competencies.

Specific to this factor, noteworthy loadings were observed in a constellation of competency elements, notably “exercising ethical conduct” (.776); “executing decisions amidst pressure or crisis scenarios” (.673); “establishing and implementing quality benchmarks for employees” (.654); “conducting rigorous appraisal of employee performance” (.607); and “strategically selecting and assigning personnel” (.510). These findings underscore the integral role of adept human resource management in fortifying the backbone of the hospitality industry, thereby illuminating pathways for enhanced managerial effectiveness and organizational efficiency.

5.5. Leadership and critical thinking

The construct of “Leadership and Critical Thinking” emerges as the quintessential fifth factor in this analytical hierarchy. Table 5 elucidates that industry connoisseurs accord this category a mean score of M = 4.00, underscoring its pertinence. This factor’s significance is corroborated in extant scholarly discourses. For instance, Kay and Russette’s seminal study in 2000 meticulously delineated specific competencies requisite for diverse functional areas within hospitality management, encompassing food and beverage, front desk operations, and sales divisions, across both nascent and intermediate managerial echelons. Their rigorous inquiry distilled 18 competencies as universally imperative across a spectrum of functional and hierarchical matrices, categorizing these into quadrants of leadership, interpersonal, technical, and creative competencies, with a pronounced emphasis on leadership as an indispensable fulcrum across all managerial functionalities. These leadership competencies were further nuanced into facets of customer-centricity, role-modeling, ethical conduct, and trust.

Complementing this perspective is the scholarly inquiry of Alexakis and Jiang (2019), who meticulously examined the congruence between hospitality managers’ perceptions of students’ skills and knowledge, and the extant paradigms in U.S. hospitality management undergraduate curricula. Their study, encapsulating the perspectives of 206 managers, advocates for the sustained prioritization of core competencies such as communication proficiency and advanced cognitive skills like critical thinking and problem-solving.

The study conducted by Bharwani and Talib in 2016 aimed to identify essential competencies for hospitality general managers, resulting in the creation of a comprehensive leadership competency framework. This framework categorized competencies into four dimensions: cognitive (knowledge), functional (skills), social (attitudes and behaviors), and meta-competencies (motives and traits). Additionally, Swanson et al.“s research in 2020 emphasized the critical role of leadership competencies in facilitating knowledge dissemination and improving employees” overall job performance. While these studies highlight the importance of leadership skills, they also underscore the significance of professional skills and human resource management competencies. This emphasis may be due to the technical proficiency requirements inherent in the hospitality industry, as noted in the findings of Kay and Russette (2000) and Chung-Herrera et al. (2003).

Pertaining to this factor, salient loadings were discerned in an array of competency elements, including “adapting to mutable circumstances” (.758); “orchestrating and supervising others” work’ (.749); “effectively managing exigent situations threatening life” (e.g., fire, bomb threat, serious illness) (.656); “galvanizing employees towards desired performance benchmarks” (.623); “initiating job enlargement endeavors” (.622); “fostering innovative methodologies in work processes” (.572); “cultivating model-building and creative thought processes” (.568); “remaining au courant with industry practices and emerging developments” (.548); and “optimizing time management to bolster productivity” (.534).

5.6. Information technology and financial analysis

“Information Technology and Financial Analysis” is identified as the sixth factor in the ranked order. As indicated in Table 5, industry professionals assign this category an average mean score of M = 3.87. Information technology is becoming increasingly indispensable in the hospitality and tourism industry, underscoring the necessity for individuals preparing for operational, supervisory, and managerial roles to cultivate IT-related skills. The current significance and growth of tourism position it as a major catalyst for economic and employment expansion in G20 countries. Nonetheless, the role of tourism in fostering employment and entrepreneurship often goes unnoticed in policy development and execution. As a sector heavily dependent on human resources, tourism is significantly impacted by contemporary social and technological shifts, which are reshaping business models, altering consumer behaviors, and transforming the structures of value chains and the dynamics of supply and demand.

Research conducted by the UNWTO in (2019), as cited in this paper, involved workers, students, the public sector, the private sector, and educational institutions. The findings indicate that all these groups consider digital/IT proficiency and customer focus as the most crucial issues to address in the next five years. Furthermore, employee work quality is deemed essential for future promotion across all groups, with technology ranking second in importance, except for workers and students, where it is considered less critical. Additionally, customer focus, creativity, and innovation are identified as key competencies for the future workforce in the tourism sector.

The factor of “Information Technology and Financial Analysis” has been highlighted as significant in various studies. Almeida et al. (2021) reported that higher education institutions are adopting new educational models to promote societal transformation, with active methodologies playing a crucial role in developing these competencies. This study addresses this challenge by exploring the adoption of a gaming approach as an effective active methodology for enhancing competencies in the tourism sector’s workforce. The current generation of higher education students, who have grown up in an era of ubiquitous mobile devices and digital games, exhibit a natural proficiency with new technologies, as observed by Raja and Nagasubramani (2018). This familiarity provides them with a unique mode of thinking and information processing compared to previous generations, as supported by research literature.

Financial awareness is critical for career success in hospitality, with financial management skills often surpassing those related to Human Resources Management (HRM), marketing, and information technology (Kay & Moncarz, 2004). Regrettably, many graduates entering the workforce today lack in-depth financial knowledge (Volpe et al., 2006), posing a significant barrier to career success in the industry. Academia must bridge this gap between finance and hospitality to equip students with the necessary competencies for success.

For this factor, specifically, significant loadings arise from the following competency element items: “using financial analysis techniques” (.776); “forecasting future trends” (.757); “using front-office (computer) equipment effectively” (.642); “analyzing weekly, monthly, and annual financial and statistical reports” (.623); “using past and current information to predict future departmental revenues and expenses” (.542); and “analyzing factors that influence the controllability of profits” (.409).

6. Conclusions

A comprehensive analysis of survey data collected from professionals within the hospitality industry has culminated in the identification of a suite of pivotal competencies, discerned through an exhaustive exploratory factor analysis. Subsequently, a sophisticated multiple regression framework was developed, predicated upon these quintessential competencies, to prognosticate career success in the hospitality milieu. The proposed framework deftly integrates six distinct competency categories as prognosticators of career success in the hospitality industry: Human Relations – Communication, Professional Image – Operational Knowledge, Interpersonal Communication – Cultural Diversity, Human Resource Management, Leadership and Critical Thinking, and Information Technology – Financial Analysis.

Of these, the competencies pertaining to Human Relations – Communication and Professional Image – Operational Knowledge have surfaced as the most influential categories. While the remaining four competency dimensions did not exhibit statistical significance, their retention within the framework is necessitated by their linkage to other pertinent variables influencing career success. This indirect correlation to career success was illuminated via a backward regression process. Moreover, these competencies have been ratified as significantly vital by industry professionals, underscoring their practical relevance.

The predominance of soft skills, particularly in a labor-intensive, customer-facing industry such as hospitality, is unsurprising. These findings underscore the imperative for educational curricula to be sculpted with a heightened focus on the development of competencies within the realms of Human Relations and Communication. Specifically, it is essential for graduates venturing into the hospitality industry to be adept at effectively managing customer interactions, addressing customer grievances with empathy, and excelling in both oral and written communications, while also fostering positive team dynamics and maintaining an optimistic disposition.

The outcomes of the study are anticipated to provide contributions not solely to the literature in tourism and hospitality but also to other fields of knowledge that necessitate a hospitable demeanor from service personnel towards guests. The outcome of this study provides insightful information that can be used to improve academic programs worldwide. Hospitality professionals, scholars, academic institutions, and policymakers can utilize the results for the development of their action plans and the design of new study programs.

The findings of this study suggest a robust correlation between competency dimensions, particularly emphasizing “soft” human relation skills and professional skills. Consequently, educators in the hospitality sector should prioritize the development of “human relations – communication skills” and “professional skills”. Hospitality institutions are encouraged to establish close partnerships with human resources management professionals to facilitate information sharing, thereby reinforcing students entering the job market with the requisite skills and knowledge. The competencies identified in this study can serve as a foundation for crafting job descriptions and formulating training and career development programs. Additionally, the study’s findings offer valuable insights for designing internship programs, providing students with opportunities to engage with real-world scenarios.

It is important to note that within the recent pandemic’s unprecedented impact on the hospitality industry, it is imperative to re-evaluate and adapt our competency framework to ensure its relevance and efficacy both during and in the aftermath of such global disruptions. The pandemic has underscored the critical need for competencies in adaptability and innovation, enabling industry professionals to swiftly respond to changing circumstances and leverage digital technologies. Moreover, the heightened emphasis on health and safety protocols necessitates the incorporation of comprehensive health, hygiene, and safety competencies. The shift towards remote working arrangements and digital operations also highlights even more the importance of developing digital literacy, remote customer service, and virtual team management skills. Furthermore, the pandemic has brought to the forefront the need for resilience and effective crisis management capabilities, essential for navigating future challenges effectively. Lastly, the crisis has reinforced the significance of sustainability and social responsibility within our competency framework, underscoring the role of sustainable practices and community support in building a resilient and ethical hospitality industry. Adapting our competency framework to include these dimensions will not only equip hospitality professionals with the skills necessary to thrive in a post-pandemic world but also ensure the long-term sustainability and success of the industry.

6.1. Theoretical implications

The results of this study lay the groundwork for the creation of effective hospitality management programs in Cyprus, offering significant value to both hospitality students and professionals. Through factor analysis, six underlying dimensions of competency variables were uncovered, indicating a robust connection between “soft” human relation skills and professional skills. Therefore, it is imperative for hospitality educators to concentrate on and bolster both “human relations – communication skills” and “professional skills”.

This study’s implications are manifold and resonate across the spectrum of hospitality professionals, educators, and students. The regression framework delineates the competencies critical for career success, serving as a valuable guide for graduates entering the industry, current managers, and human resource professionals in strategizing their developmental approaches. Furthermore, educational institutions are encouraged to contemplate this framework for the design and execution of innovative, industry-relevant programs of study. There is a marked emphasis on the integration of soft skills and operational functionality in educational endeavours.

Hospitality institutions could benefit from establishing collaborative relationships with human resources management professionals to exchange information, thereby enhancing the perceived readiness of students before they enter the workforce. The competency dimension of “Human Relations – Communication” emerged as the most critical. It is recommended that programs include courses in interpersonal communication, managerial communication, persuasive communication, conflict resolution, and total quality management to bolster soft people management skills. Equal emphasis should be placed on both oral and written communication skills, as well as on listening, observation, interpersonal, and teamwork skills.

The essential competencies identified in this study, such as effective communication with clients and customers and managing guest problems with understanding and sensitivity, can serve as the basis for crafting job descriptions and establishing a framework for training and career development. This study holds particular significance for educators, as the majority of the top 10 competencies identified fall within the realm of communication. Programs that place a strong emphasis on communication dimensions should align with and cater to the expectations and needs of the industry.

6.2. Practical implications

This research underscores the indispensable role of operational knowledge in shaping a robust hospitality program. Internships emerge as vital, offering students unparalleled insights through practical experience. Nonetheless, the true value of these internships hinges on their meticulous design. Internships lacking a structured framework risk diminishing in perceived worth and impact. Only through strategically planned internship programs can students, educational entities, and the hospitality sector at large achieve reciprocal advantages. It is imperative that university and college curricula are designed to immerse students in both theoretical knowledge and practical application. This dual approach is pivotal in fostering the competencies highlighted by this study. Enhancing students’ professional persona and operational acumen within the hospitality curriculum is critical. A multifaceted strategy, encompassing field trips, internships, workshops, on-site training, mentorship, and analytical problem-solving exercises, can effectively cultivate these essential skills and knowledge.

This study provides valuable insights for stakeholders in the hospitality industry by outlining current trends in university and college hospitality management programs and offering strategic recommendations. It is especially beneficial for organizations such as the Cyprus Hotel Association and the Association of Cyprus Tourism Enterprises. These entities can utilize the findings to formulate precise job descriptions that align with the competencies essential for students aspiring to enter the hospitality workforce. This research encourages hospitality professionals to refine orientation and training processes for new graduates, capitalizing on their competencies to foster further development through practical work experience. Moreover, it aids in integrating these competencies into job descriptions and training programs, thereby preparing graduates to become adept hospitality managers who possess a deep and thoughtful understanding of their industry, capable of planning for future challenges while adeptly managing current operations.

The implications extend beyond academia to encompass industry professionals who are in pursuit of candidates with tangible experience in the hospitality field. The industry is tasked with forging stronger collaborations with educational institutions to align learning outcomes more closely with sectoral needs. For educational establishments, the stakes are equally high. There exists a pressing need for these institutions to establish and nurture robust connections with the hospitality industry, thereby ensuring that students have access to practical placement opportunities. This partnership is essential for an ongoing dialogue aimed at refining academic programs to better meet the evolving requirements of the hospitality sector. Proposed is a strategic academic framework that prioritizes competencies deemed critical or highly relevant to career success in hospitality.

This necessitates a revision and modernization of curriculum content and pedagogical methods to incorporate new skill sets demanded by the industry, such as adaptability to health/safety protocols, effective communication, innovation, remote work capabilities, technological fluency, leadership, and team-building competencies (Sigala, 2021). Echoing the insights of Professor Stavrinoudis (2023) from the University of the Aegean, Greece, the challenge of securing the right and qualified personnel transcends national borders, presenting a global issue. The crux of the matter lies in the evolving nature of tourism employment. Addressing these challenges head-on, education and targeted training in tourism emerge as critical pathways toward mitigation.

7. Limitations and future research

Future research could adopt a longitudinal approach to accurately capture the industry’s evolving needs, effectively addressing potential limitations due to the dynamic nature of key competencies in response to shifts within the business environment. Such shifts may include changes in socio-cultural dynamics, economic conditions, technological advancements, and reactions to recent global crises, including pandemics. competencies crucial for successful career paths in the hospitality industry. This longitudinal perspective is vital for maintaining the framework’s relevance and efficacy, ensuring that it adapts to the industry’s continuous changes and remains a valuable resource for enhancing career success in the hospitality sector. While acknowledging the limitations of this study, the proposed framework may serve as a guide for educators, industry professionals but also graduate students, equipping them with essential insights for developing the right competencies for career success and subsequent organizational performance.

Disclosure statement

No potential conflict of interest was reported by the author(s).