In the recent past, the world has witnessed greater interaction and cooperation of people. In this regard, diversity management has become an important aspect as failure to manage it results to failure of the business. Diversity brings people of different backgrounds and culture together and, as such, proper measures must be put in place to manage these people and ensure coexistence (Singal 2014, p. 15). The hospitality industry deals with people from different backgrounds and cultures. Some of the common negative aspects that come with diversity in the hospitality industry are discrimination, prejudice and racism (Boella and Goss-Turner 2013, p. 75). This calls for proper management of diversity as this is a crucial aspect for success in the industry. In this paper, discrimination, racism and prejudice aspects of diversity management will be delved into giving examples of real cases in the hospitality industry. The paper also gives strategies that can be used to alleviate these negative aspects of diversity management in the hospitality industry. An evaluation strategy that can be used in measuring the success of the strategy to reduce cases of discrimination, racism and prejudice will be given.