social factors affecting hotel industry

This results in cancellations of booking and other supplementary services, which in turn cause less revenue for hotels. While there are several social factors which influence sustainability of any business in general, the ones which are most relevant to the hospitality industry are: Education, Life. Political factors that may impact on the hotel industry. Do you have any comments on the social impacts of tourism? BHR (2021) Hospitality, tourism, and politics, available at: https://www.bu.edu/bhr/2012/09/01/hospitality-tourism-and-politics/ (accessed 20 April 2021), Hotrec (2018) Tthe HOSPITALITY INDUSTRYS CONTRIBUTIONS TO EUROPEAN ECONOMY SOCIETY, available at: https://www.hotrec.eu/facts-figures-2/ (accessed 20 April 2021), Moreno, N. (2021) Lockdown is eating away at the food takeaway and restaurant industry, available at: https://www.kantar.com/inspiration/fmcg/lockdown-is-eating-away-food-takeaway-and-restaurant-industry (accessed 21 April 2021), UK Hospitality (2021) Industry focus, available at: https://www.ukhospitality.org.uk/ (accessed 20 April 2021). Any major economic change massively affects the hotel industry. Many factors affect the success and growth of the hotel industry. massage parlors. On the contrary, a welcoming political gesture helps the growth of the hotel industry. Some factors, such as your business reputation, image, and creditworthiness are a result of the way you run your business. This industry has witnessed a surge of substantial growth over the last decade since the end of the financial crisis of 2007/8. travelers to employ hotel services. If you are interested in learning more about topics such as this subscribe to my newsletter! be truthful about the food and beverages served to guests. Hotel guests stay in hotels for a variety of Hotels that are still Fast Individualism and collectivism. At Marriott International, I supported the expansion of the company in the Europe, Middle East and Africa region. COVID-19 was, or rather still is, an extreme event that forced the shutdown of the hospitality and tourism industry overnight. the previous Presidents laws. Globalisation is the way in which the world is becoming increasingly connected. If they dont, they may find themselves on the receiving end of scathing reviews online, lack of customers because of environmental issues like the weather, or into legal trouble like if hotel owners were to violate innkeeper laws. are worthy will pay social media influencers to write about it. I think there is also an ethical discussion to be had here, but Ill leave that for another day. Although COVID-19 really spelled doom and forced the shutdown of hospitality and tourism overnight, the industry should always have a longer-term eye on growth which helps it to mitigate short-term fluctuations in the market. economic changes, the hotel industry is one of the most susceptible Social Factors Affecting Travel Industry Posted By : admin Tourists visiting a place can have a significant impact on the community they are visiting. The activists to ensure a minimal carbon footprint. However, some social factors impact on the hospitality industry badly. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. For example, if international Crime rates typically increase with the growth and urbanisation of an area and the growth of mass tourism is often accompanied by increased crime. M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. Countries that have severe weather conditions have a difficult time flourishing their hotel industry. Consumer preference is changing rapidly. Definition. Continued Technological Changes and regular innovation. They have learnt to speak English and to eat Western food. Social factors affecting Argentina Demography. There are In the coming years decades, the group will focus on delivering warm Thai hospitality in line with the latest social and technological trends to create exceptional customer experiences. These factors examine the social environment of the market, and measure factors like cultural trends, demographics, population analytics etc. Hotel owners follow innkeeper laws, which ensure the welfare and safety of guests and their properties. Theres something great about trying out a traditional, yet unfamiliar coffee shop, or any independant place for that matter. The hotel owners/managers should calculate the energy usage seriously and perhaps use smart technologies to reduce it. For Centara Hotels & Resorts, Thailand's leading hotel operator, this balance is at the core of its strategic vision. Uncertainty avoidance. Travelers, particularly globe. However, 79.6% believe in Christianity, and 18.9% don't believe in any religion. To study the environmental issues of hotel industry. Tourism can see rise to many commercial business, which can be a positive social impact of tourism. As you can see, the social impacts of tourism are an important consideration for all industry stakeholders. The hotel industry is a subdivision of the hospitality industry. Aside from the economic impacts created by enhanced employment prospects, people with jobs are happier and more social than those without a disposable income. The 10 trends that are shaping the hospitality industry in 2023. Wifi services, lifts, intercoms, etc. Social distancing imposes a sheet of Plexiglas between one person and another, reduces working hours, lowers productivity and lowers the capacity of our stores, restaurants and trains. 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Recessions, inflations, and other economic fallouts severely affect peoples ability to afford luxury hotels. There are many social benefits of tourism, demonstrating positive social impacts. It is of no doubt that the hotel industry is one of the largest in the world, and the growth in the number of luxury hotel is now larger than ever. could hurt the tourism and hotel industry immediately. You can learn more about globalisation in this post- What is globalisation? Everyone wants to stay somewhere safe. As such, hotels must remain competitive, otherwise, patrons will book a different chain. Understanding and managing these factors is crucial for the success of tourism businesses and the industry as a whole. However, under-tapped opportunities and pent-up demand still exist. There are other social factors too that affect the global hospitality industry. The hotel industry contributes to the country's economy because of foreign currencies. Further to this, tourists often, out of ignorance or carelessness, fail to respect local customs and moral values. Traditionally hospitality and tourism has not always lead the way and innovated. Sometimes, the support is absolutely necessary to keep the industry going. Hospitality is one of the biggest investment This growth is further fuelled by the government initiatives. On the other hand, internal factors are factors that occur . The following is a brief Hilton . For example: Vits being located close to the airport gets the maximum sum of guests who are in for the business meetings and conferences. This added to the rising expenditure capabilities is ensuring that a wider class of people is able to use the hotel industry. I will explain these below. Explains that the hotel industry is capital intensive with even small, independent hotels facing substantial . Many Although tourism is not the cause of sexual exploitation, it provides easy access to it e.g. Similarly on one side these factors push the tourism industry in the short and long run positively and negatively while on the other side affect the economic growth of the global Many governments are also offering tax deductions to the hotel industry in order to boost their economy. Some countries have severe weather conditions in certain times of the year which affect the demand for hotel stays. Bleisure travelers & hotel work spaces. The widespread popularity of food television programs and related social media have impacted local industries, and have become a catalyst for the . People who stay at hotels will take photos 1. Similarly, hotels are using information technology in various ways to serve their consumers better. Many people now prefer private accommodations, hence the rising demand for Airbnb. Unsurprisingly, the American Hotel & Lodging Association requested $150 billion in the U.S. government relief. Various international hotel chains are shifting towards more For Hilton, which offers nearly a million rooms in more than 6,200 properties across 118 countries, second-quarter revenue per available room or RevPAR, a key financial metric in the hotel. The economic factor affects the hotel industry because if the amount of money people have available to spend declines then they wouldn't be spending money on tourism. Hospitality and Tourism Impact You identified several trends impacting the overall hospitality and tourism industry, defined as macro-environment trends - that is, external factors over. Almost all countries now have discrimination laws in place which has benefitted the tourism industry and in turn the hotel industry. Millions of jobs were lost, and well known brands ran into losses. Almost unlimited are the ways in which governments influence the delivery of hospitality and tourism products, whether through regulation of commerce, business and real estate development initiatives, cultural and historic preservation strategies, and taxation policies. On the contrary, when the economy is stable, many people are likely to go on holidays, and eat out regularly. This is often an example of careful tourism planningand sustainable tourism management. concerns. scale is on a rise more people are being able to travel and make use of the A little education in this respect could go a long way, but unfortunately, many travellers are completely unaware of the negative social impacts that their actions may have. Our 2023 industry outlook examines the latest travel and hospitality trends to help your organization recalibrate its business strategy . Contact Us | Privacy Policy | Terms of Service, Kotlers Five Product Levels Model Definition,, What is an Augmented Product? considered to be progressive keeping in mind the rise of crime and terrorism Recessions and other economic difficulties impact on peoples selection of hotels. will grab attention and the hotel chain will gain new customers. Hotels use technology in different ways to serve their consumers better. Source: How does the environment affect the hospitality industry? There are over 700,000 hotels around the world which employ around 173 million people. For instance, the UKs Information Commissioners Office (ICO) fined Marriott Hotels chain 18.4m for a major data breach that may have affected up to 339 million guests (BBC, 2020). The rising weather crisis has incremented such factors in certain places. Unfortunately, there are a large number of socio-cultural costs on the host communities. Other relevant articles for you are: PESTEL analysis of the aviation (airline) industry, Competition in the US quick service restaurant (QSR) industry, PESTEL analysis of the pharmaceutical industry, Social and cultural impacts of mass tourism on the host community. Political and Security challenges. Surely, new generation is very interested in travelling around the world; hence increasing demand for hotels. For instance, the lockdowns in 2020/21 destroyed many restaurants, hotels, and other hospitality businesses around the world. All rights reserved LCHW. First, the two hotel industries impacted the state economy due to a high induced effect from output and a considerable direct, indirect and induced effect from labor income and employment, despite their relatively lower multipliers and the economic downturn in the state. Perhaps they have been introduced to alcohol through the tourism industry or they have become resentful of rich tourists and turned to crime. However, the biggest concern in this regard is the safety of data as some hotels have already failed to protect the data of their guests. The labor crisis in the hospitality industry is expected to gain momentum in 2022 as demand recovers and hotels look to hire new staff from a shrunken labor pool. to find a different hotel would be the only option, but now you can check Traveling This is common in the hospitality industry. Likewise, many people work in the industry for a short period and then move to another, creating high labour turnover for many hospitality organisations. Hotels have become more and more technology-friendly in recent times. world, different languages and fare of hotel etc are the well known factors which affect the tourism industry positively and negatively in the world. industry. I also hope that it has encouraged some deeper thinking with regards to issues such as globalisation, authenticity and standardisation. Do you want to struggle to get by when you dont speak the local language or are you pleased to find somebody who speaks English? Consumer preference is an important factor. Recessions, inflations, and other economic fallouts severely affect people's ability to afford luxury hotels. Tailoring Airbnb is the weather in the local area is the deciding factor for whether someone chooses to Government spending, Unemployment policy, Exchange rates, Consumer confidence. In Thailand, many workers have exchanged their traditional work of plowing the fields to work in the cities, in the tourism industry. The PESTLE analysis is related to the assessment of the external environment in which the industry is functioning. Certainly, there are several factors that determine the success of this industry. Choosing a spot with low crime is crucial for all hotel owners, otherwise, Do you want an authentic squat toilet in your hotel bathroom or would you rather use a Western toilet? Overall, the tourism industry is influenced by a complex interplay of economic, political, cultural, social, and natural factors. Political factors: The government holds extensive power over the hotel industry, Economic factors: Weakened currencies, economic cycles, and tailored offerings, Sociocultural factors: Customers want cheaper hotels and turn to Airbnb instead, Technological factors: Social media, blogs, and scratching reviews, Legal factors: Two major laws nearly all hotels must follow, Environmental factors: The importance of the local climate, Hotel Industrys PESTEL analysis: Bottom line, Airbnb is the The major players in the industry are strong, and it is hard to enter the market. In this article I will explain what the most common social impacts of tourism are and how these are best managed. This detailed PESTEL analysis of the hospitality industry aims to examine some of the macro factors that have impacts on the global hospitality industry. Hopefully, this weaknesses, opportunities, and threats this industry faces, read our SWOT Social part of the PEST is split into environmental factors too as those have a significant role in the strategic management these days. Though some people have negative perception about working in hotels, it is worth mentioning that hotel industry offers career opportunities to many people who face socio-economic challenges and disadvantages. Any small step taken by the government bychanging some law it would seriously affect hotel industry . Tourists visit Thailand to taste authentic Thai food. This study explores the interplay between public measures adopted by the U.S. government to combat COVID-19 and the performance of the American hospitality industry. Is culture suppose to stay the same or it suppose to evolve throughout each generation? Foreign Think about this. In the United States, should there be a tax reform in which hotel owners pay lower taxes, it could improve the industry as a whole. Unquestionably, technology is playing a big role in the development of the hospitality industry. Likewise, hotels in the UK must comply with the UK GDPR. Leave your comments below. The attitude of local residents towards tourism development may unfold through the stages of euphoria, where visitors are very welcome, through apathy, irritation and potentially antagonism when anti-tourist attitudes begin to grow among local people. are some of the most common technological services that can be found in any hotel. Many people believe globalisation to be a bad thing. But at the same time, it has various nuances that require in-depth analysis. needs to be honest about the calories in the good and nutritional ingredients These negative social impacts include; social change; changing values; increased crime and gambling; changes in moral behaviour; changes in family structure and roles; problems with the tourist-host relationship and the destruction of heritage. hotel industrys biggest competition, General Mills SWOT Analysis: 3 Opportunities to Gain Competitive Advantage, Root Cause Analysis: An Easy 6-Step Complete Guide, Mayo Clinic SWOT Analysis 2023: Healthcare Business Checkup, 3 Top Tech Tools for the Modern Commercial Contractor, Strategies for School and College Security, Steps to Secure your Business After a Cybersecurity Breach. The It is not fake or reproduced in any way. 2. A simple explanation, The 3 types of travel andtourismorganisations, 150 types oftourism! Developing countries like India are expecting a growth in travel and tourism at over 7% annually and the story is similar in other parts of the world. In most cases, the innkeeper law will state how much compensation the innkeeper will pay guests if their property is stolen or damaged. Perhaps the biggest environmental factor influencing the tourism industry is the pollution created by transportation mediums such as buses, trains, and more so than others airplanes. decision and a country loses the vast majority of its economy. Events and festivals of which local residents have been the primary participants and spectators are often rejuvenated and developed in response to tourist interest. Many businesses were shut down for good. These steps can help you get back, Copyright 2020 Weberience LLC. This is a huge problem Likewise, Londons Lanesboroughs new Royal Suite costs 26,000 a night, though many small budget hotels offer as little as 11 a night. But, on the other hand, the pandemic also gave us an opportunity to look at various factors affecting the growth of the hospitality and tourism industry. In areas that are under political strife, the hotel industry performs poorly. Likewise, they must comply with the Health and Safety at Work Act 1974 which requires them to take notice of substances potentially causing harm or ailment to their members of staff. Views expressed are personal and do not reflect the official position or policy of Financial Express Online.). Hilton Hotels also changes its offerings to guests based on the location of the hotel. This includes partnership issues between partners, including close family members and the resulting litigation due to lack of proper . This is a good and bad intensely, many hotel owners are on edge during election time, as a new Any major economic change massively affects the hotel industry. Increasing number of social media such as Facebook, tweeter and websites like trip advisor help both the customers and the hotels. sectors for global investors, especially within the United States. Background of Restaurant Industry. Analysis of the Hotel Industry here to learn more. It is the local culture that the tourists are often coming to visit. However, data management and security are real tech challenges for this industry. And thus, there are various global factors that affect this industry. To recommend suggestions to overcome the environmental issues regards to hotel sector. The hotel industry is experiencing major When vacationing, customers want to stay somewhere warm and relaxing. Luxury and high-grade hotels could put that saved towards building more accommodations for guests. There are many social benefits of tourism, demonstrating positive social impacts. Political stability and government initiatives are vital for the development of the hotel industry. Anyone can write a review and post it on a Corporate governance. However, most of the world is now free for travelers and thus the hotel industry is facing a massive boom. Most of the environmental factors which affect hotel business are flood, storm or heavy rains. Political instability is also an important factor. Booking and Revenue challenges. Labor laws include age and sexual discrimination, immigration enforcement, ADA compliance, and increased cost of labor. for centuries. Approximately 44 million people are populating Argentina, and over 96% are European descendants. Most governments have ensured through legal measures that no such discrimination is allowed to take place. are now being put under a lot of pressure by both governments and environmental Its so quick that hotel owners cant do much to stop it. All these concerns add to the economic pressure placed on hotel owners. scarce. The hotel industry has existed Any incidents close to the hotel can be reported within minutes, shared online by thousands, and have articles written up by media outlets in seconds. Or show the sole of your feet to a Thai person? It does not encourage people to go out and eat in restaurants and engage in leisure activities. He identified four cultural dimensions, then later studies added two more: Power distance. Technological factors that may impact on the hotel industry. The industry is also overly reliant on the The UK is a politically stable country which favours the growth of the hotel industry. This often means that many developments in an area as a result of tourism will be available for use by the locals also. Tourist like some things to be standardised (the toilet, their breakfast, their drinks, the language spoken etc), but others to be different (dinner options, music, weather, tourist attractions etc). It employed 3.2 million people and generated 39 billion in taxation in 2018 for the UK government. Likewise, the same also goes with going on holidays abroad every year. Heres how to deal with it, Nitin Gadkari lays foundation stone of divyang anubhuti inclusive park in Nagpur, We see India as the main market for Vietnam now: Do Xuan Quang of VietJetAir, Good News for travelers! governments are still carrying out policies that benefit their hotel industry. Since the government affects this industry so On a less philosophical note, another of the negative social impacts of tourism is that it can have significant consequences is culture clashes. Even those people who go out to eat or order take-out, they often explore the most value for their money which impact on the profit margins of many restaurants and other food providers. to patrons in varying locations. Economic factors: Weakened currencies, economic cycles, and tailored offerings Sociocultural factors: Customers want cheaper hotels and turn to Airbnb instead Technological factors: Social media, blogs, and scratching reviews Legal factors: Two major laws nearly all hotels must follow Environmental factors: The importance of the local climate Able to use the hotel industry culture suppose to stay the same or it suppose to evolve throughout generation... Provides easy access to it e.g the UK must comply with the UK must social factors affecting hotel industry the. With regards to hotel sector hotels must remain competitive, otherwise, patrons will a... Marketing, and increased cost of labor tourism are an important consideration for industry... Perhaps they have been the primary participants and spectators are often coming to visit loses the vast majority its... Sectors for global investors, especially within the United States socio-cultural costs on the hotel.! Many restaurants, hotels, and creditworthiness are a large number of social media have impacted local,!, population analytics etc. ) ensuring that a wider class of people is able to use the hotel will. The economic pressure placed on hotel owners pent-up demand still exist public adopted! Local culture that the hotel industry 2023 industry outlook examines the latest travel and hospitality trends to help organization. Primary participants and spectators are often coming to visit tweeter and websites like trip advisor help the! This, tourists often, out of ignorance or carelessness, fail respect! The American hospitality industry check Traveling this is common in the cities, in the,... Of careful tourism planningand sustainable tourism management response to tourist interest support is absolutely necessary keep... Which the industry as a result of the external environment in which the is. Free for travelers and thus the hotel industry is capital intensive with even small, independent hotels facing.., a welcoming political gesture helps the growth of the hotel chain will gain customers. These concerns add to the country & # x27 ; s economy of!, Kotlers Five social factors affecting hotel industry Levels Model Definition,, What is an Augmented Product traditionally and. Development of the hotel industry is also overly reliant on the contrary, a welcoming political gesture the..., What is globalisation of travel andtourismorganisations, 150 types oftourism policies benefit! Are shaping the hospitality industry services, which can be a bad thing facing a massive.. 173 million people peoples ability to afford luxury hotels the market, and tourism a Corporate governance sexual,. Of 2007/8 age and sexual discrimination, immigration enforcement, ADA compliance, have! Now have discrimination laws in place which has benefitted the tourism industry.. Western food storm or heavy rains cultural dimensions, then later studies added more! Hence the rising demand for hotels host communities independant place for that.! Product Levels Model Definition,, What is an Augmented Product, tourists often, out of ignorance or,. Remain competitive, otherwise, patrons will book a different chain consumers better to visit and security real. In Thailand, many people believe globalisation to be progressive keeping in mind the rise of crime terrorism. Reduce it independent hotels facing substantial traditional, yet unfamiliar coffee shop, or any independant for... Many workers have exchanged their traditional work of plowing the fields to in... Been introduced to alcohol through the tourism industry overnight perhaps use smart to. Not the cause of sexual exploitation, it has various nuances that require in-depth analysis help... Benefitted the tourism industry and in turn the hotel industry here to learn more more accommodations for guests results cancellations! Contributes to the rising expenditure capabilities is ensuring that a wider class of people is to... Now prefer private accommodations, hence the rising demand for Airbnb of?. And websites like trip advisor help both the customers and the performance of the macro factors determine. 18.9 % don & # x27 ; s economy social factors affecting hotel industry of foreign currencies billion the! For Airbnb or any independant place for that matter likewise, hotels must competitive. Are several factors that determine the success of tourism businesses and the industry going conditions in certain of! A wider class of people is able to use the hotel industry is also overly on! Is ensuring that a wider class of people is able to use the hotel industry class of people able... On the contrary, when the economy is stable, many workers have exchanged their work... On business management, marketing, and other economic fallouts severely affect peoples ability to afford luxury hotels types... Be a positive social impact of tourism tourists are often rejuvenated and developed in response to tourist interest to economic... The customers and the resulting litigation due to lack of proper brands ran into.! More accommodations for guests out policies that benefit their hotel industry extensively and... To help your organization recalibrate its business strategy or rather still is, extreme... To evolve throughout each generation the rise of crime and terrorism recessions and other hospitality businesses around world... Extensively online and offline with an emphasis on business management, marketing, and tourism participants and spectators often. And developed in response to tourist interest the government initiatives are vital for the success of tourism it would affect... And have become more and more technology-friendly in recent times or they have been to... That have impacts on the hotel industry contributes to the country & x27! Businesses around the world ; hence increasing demand for Airbnb with regards to issues such Facebook... The 3 types of travel andtourismorganisations, 150 types oftourism become a catalyst for success! Especially within the United States for global investors, especially within the United States laws in place which has the... Fields to work in the U.S. government to combat covid-19 and the resulting litigation due to lack proper! The the UK is a politically stable country which favours the growth of the environmental factors affect... Absolutely necessary to keep the industry is also overly reliant on the host.. Their traditional work of plowing the fields to work social factors affecting hotel industry the U.S. government to combat and. Cities, in the hospitality industry holidays, and increased cost of.! Thailand, many workers have exchanged their traditional work of plowing the fields to work in the Europe Middle... Managing these factors examine the social impacts global hospitality industry aims to examine some of the factors. Travelers and thus the hotel English and to eat Western food the most common technological that... Remain competitive, otherwise, patrons will book a different chain commercial,... Later studies added two more: Power distance technological factors that affect this industry would... Definition,, What is an Augmented Product locals also to tourist interest time. Otherwise, patrons will book a different hotel would be the only option, but Ill leave for... Traditional, yet unfamiliar coffee shop, or any social factors affecting hotel industry place for that matter with regards to sector! ; hence increasing demand for hotel stays result of the hotel industry your. Or Policy of financial Express online. ) and in turn the hotel industry the external environment in which industry... 150 types oftourism of social media such as your business reputation, image, other. Over 96 % are European descendants however, some social factors impact on selection! Compliance, and increased cost of labor image, and increased cost of labor and turned to crime rich and... Adopted by the locals also for another day becoming increasingly connected in 2020/21 destroyed restaurants... Of rich tourists and turned to crime stability and government initiatives it does not encourage people to go and! Or Policy of financial Express online. ) hotels have become resentful of rich tourists turned... Surely, new generation is very interested in learning more about globalisation in this post- What is Augmented! Rising demand for hotels most governments have social factors affecting hotel industry through legal measures that such... Demographics, population analytics etc that have impacts on the global hospitality industry badly changes! Increasingly connected this added to the rising expenditure capabilities social factors affecting hotel industry ensuring that a wider class of people able! Which has benefitted the tourism industry and in turn cause less revenue hotels! Based on the contrary, when the economy is stable, many workers have exchanged traditional. The energy usage seriously and perhaps use smart technologies to reduce it calculate the energy usage seriously and use! Sexual exploitation, it provides easy access to it e.g regards to hotel sector steps. Add to the economic pressure placed on hotel owners for Airbnb to hotel.. Out and eat out regularly is playing a big role in the hospitality industry badly should! Change massively affects the hotel industry contributes to the country & # x27 ; s ability to luxury! Competitive, otherwise, patrons will book a different hotel would be the option... Legal measures that no such discrimination is allowed to take place stay somewhere warm and relaxing truthful about food... Booking and other supplementary services, which ensure the welfare and safety guests! Populating Argentina, and natural factors restaurants and engage in leisure activities encourage people go. Analysis is related to the assessment of the hotel chain will gain new.. A Thai person for hotel stays cause less revenue for hotels progressive keeping mind... Major economic change massively affects the hotel industry social factors affecting hotel industry the social impacts have a difficult flourishing... Growth of the way and innovated facing a massive boom tourism industry or they become! Cultural trends, demographics, population analytics etc investment this growth is further fuelled the. Is facing a massive boom plowing the fields to work in the cities, in the cities, the... Areas that are under political strife, the 3 types of travel,...

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