5134 contemporary issues in hospitality

CONTEMPORARY ISSUES IN HOSPITALITY

Table of Contents
INTRODUCTION......................................................................................................................1
TASK A.....................................................................................................................................1
1.1 Current scale, scope and diversity of the hospitality industry.....................................1
1.2 Organisational structure of different hospitality industries..............................................2
1.3 Role of hospitality related organisations and professional bodies in the hospitality
industry...................................................................................................................................3
2.1 Staffing requirements of different hospitality industries..................................................3
2.2 Roles, responsibilities and qualification requirements of hospitality staff.......................4
3.2 Current image of the industry...........................................................................................6
TASK B......................................................................................................................................7
3.1 Operational, managerial and legislative issues resulting from recent developments
affecting the hospitality industry............................................................................................7
4.1 Predicted future trends and developments in hospitality..................................................9
4.2 Impact analysis for the predicted trends and developments...........................................10
CONCLUSION........................................................................................................................11
BIBLIOGRAPHY....................................................................................................................12

INTRODUCTION
The hospitality sector is much wider than any other industry. The majority of business
in this industry are niches and complete focus on satisfaction of customers plus meeting their
leisure needs instead of only basic ones. The most defining characteristics of this sector is
that it concentrate on satisfaction of visitors and thus the hospitality organizations entirely
relies on clients being happy with their services. One more defining characteristics of the
particular sector is that it reliance on leisure time plus disposable income. Many people think
that hospitality industry comprise of hotels alone but actually hotels are just a single sector of
it. Several types of transportation that cater needs of tourists are also considered as an
important part of this business. In this regards, the report here is briefing about hospitality
industry structure along with its scale, diversity and scope. Moreover, different staffing needs
in the specific sector is inculcating in the paper together with its current legislative,
managerial and operational issues. At the end, the discussion is summarizing by signifying
potential trends and developments in the hospitality industry of UK.
TASK A
1.1 Current scale, scope and diversity of the hospitality industry
Scope
The hospitality sector has around 1, 27, 000 separate businesses. The industry makes
total turnover of £70,000 million by employing 1.6 million of human resources. Thus, the
particular industry is considered as third biggest as well as diverse sector that is offering
employment throughout the globe. Moreover, this sector is having huge scope in the UK. It
comprise different commercial sector like restaurants, food outlets, hostels, takeaways, clubs,
motels, pubs, etc. together with sectors related to welfare like educational institutions,
residence halls, hospitals, old age homes, prisons, etc. Each year a large rush of tourists
comes to this country for seeing its beauty and enjoying several theme based parks along with
best dinning at boutique hotels. These hotels provide accommodation to huge numbers of
tourists on regular basis, hence required manpower for undertaking different operations.
Scale
Besides above, the hospitality industry is diverse on the basis of its classification,
leisure facilities, innovation, ownership, future trends, grading system, service level, etc.
There are different types of hotel in UK that provides standard services to visitors.
Furthermore, the lodges not only offer food and accommodation but provides various
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additional facilities like Wi-Fi, sauna bath, gym, salons, night clubs, swimming pool as well
as business conference and meeting rooms. Also, the ownership and management styles are
of different types like private limited, public limited, sole owner, partnership, etc.
Diversity
In addition to above, the hospitality industry based on its diversity offers several
services for different individual types throughout the globe. According to customer’s needs,
hotels have many types of bedrooms, such as luxury suits, deluxe and shared rooms. Thus, a
series of services related to accommodation are provided by the specific sector like party
halls, conference rooms, etc. that served in similar manner as bedrooms for giving best
comfort to customers.
1.2 Organisational structure of different hospitality industries
The following are structure followed by different hospitality sectors:
Flat – This is sometimes also referred to organic and are said to have imperceptible chain of
command, extensive delegation of responsibility and improved communication. Hospitality
organizations adopting this structure often operate better in dynamic environment of business,
as they able to quickly respond to trading shifts.
Tall – The taller companies have opposite features. Such structure type is also referred to
mechanistic structure. In the particular structure there is clearer chain of command, limited
empowerment of employment and slower managerial decision making. The hospitality firms
adopting this structure are less likely to quickly respond to environment. For instance, hotels
chains with 140 or more bedrooms follow tall structure.
Matrix – In this structure type, an organization is managed by a series of dual-reporting
relations rather than traditional structure of linear management. In contrast to other structure
of company that arranges employees and managers by product or function, matrix
management combines product and functional department in a system of dual authority. In
simple term, matrix configuration might be known as cross-functional team of work that
brings together employees who report to distinct parts of organization for completing a
specific task or project.
If one consider the Marriott International, an American diversified company of
hospitality sector that franchises and manages a wide portfolio of hotels as well as its related
facilities of lodging. The hotel adopts flat structure, in which department manager give order
to employees of that particular department, like General Manager have responsibility and
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authority to control all departments. In this structure, the managerial executives at top level
required to be enough wise for comprehending that changes are in trend and business is
dynamic. These managers are capable to make fast decisions for the growth of business
according to changing need of customers and market.
1.3 Role of hospitality related organisations and professional bodies in the hospitality
industry
The professional bodies helps individuals and organizations operating in hospitality
sector for developing their skills or abilities to perform. These entities can become a member
of professional bodies for attaining benefits of training sessions, mentoring plus networking
opportunity. The below is the explanation of a well-known hospitality association of UK:
British Hospitality Association – It runs varied campaigns to promote interest of hospitality
firms in suggesting government of UK on the matters of reduction in red tape. British
hospitality association campaigns like driving competitiveness to lessen VAT of tourism,
providing access to UK visa are some mode of lobbying Government and Parliament
members for the benefits of industry. Additionally, BHA role is to share experience and
knowledge with corporate members by interacting with them directly. Furthermore, it
conducts campaigns like Responsible Hospitality for supporting members to get novel
standards in waste reduction and food labelling, Hospitality Bellwether to support members
in getting all necessary information and Inspiring Next Generation to develop novel jobs.
2.1 Staffing requirements of different hospitality industries
The hospitality industry makes a range of recruitment on regular basis due to great need
of manpower. Both white and blue collar employees find good working opportunities in the
hospitality sector. The process of recruitment in the particular sector is unique and require a
customer centric approach. At all level, the industry offers a huge series of occupation that
calls for different type of education and training. The below given is staffing requirements in
two sectors of hospitality:
Staffing in bistros
Chef – This person have all responsibilities related to kitchen activities. Moreover, they make
decision regarding the purchase of ingredients, utensils, equipment’s and design menu. They
should be craft or experienced in their field.
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Manager – He/she is responsible to open and close the bistro, maintain register, purchase
inventory, track it, manage advertising, train staff and make good contacts with suppliers.
Waitress/waiter – They serve beverages and foods, take customers’ orders, prepare itemized
checks as well as collect payments. They should semiskilled.
Cashier – This entity is semiskilled and hire to work as an in charge of register. The
responsibility of cashier include making cash card or credit transactions, tipping out wait staff
and balancing register at the end of day.
Dishwasher – The particular person is unskilled and hire for supplying clean dishes, pans,
utensils and pots to kitchen staff on continuous basis.
Staffing in hotel
Housekeeping staff – Hotels employ these unskilled individuals to provide clean and well
comfort accommodation services to guest. These staffs replenishes linens and room items,
clean bathrooms, vacuum and sanitize the rooms as well as make beds.
Accommodation and hotel managers – This entity is responsible to look over all operations
undertaken in the hotel plus put efforts for providing great experience to visitors.
Food and beverage manager – The particular manager look over services related to drink and
food availability in rooms as well as in restaurant of the hotel. Also, this manager supervise
inventory available and its quality in bars and kitchen.
Front house manager – They are employed to supervise duties of accountants, reservation
clerks, receptionists, porters, switch board operators, drivers, etc. This manager is
accountable for overviewing formalities of allocation along with details of guest verification.
Operations manager – This person is hired for overseeing all departments smooth
functioning. The operations manager ensure about customers satisfaction with the execution
of adequate policies.
2.2 Roles, responsibilities and qualification requirements of hospitality staff
The following are main qualifications required in hospitality industry:
Front office: It is an essential part of hospitality management that helps in offering varies
service to customers such as room booking, check in and check out system, delivering
guidance to customers and other related. For this, education qualification of High school
diploma; associate's degree or higher is recommended.
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Industry-specific training – This training is related to industry’s specific needs including
statutory and OHS compliance needs plus risk management.
Commerce – It is highly relevant to practices of good business and profitability, commerce in
the particular industry is one main concentrations of operation management.
Administration – The administration of hospitality can be very complex comprise several
administration areas along with distinct services.
Accountancy – It is fundamental of business and one main functional role of managing
hospitality.
One of the main roles in hospitality industry is front office manager who in charge the
switchboard and reception as well as directly report to room division manager. In order to
responsible for handling any complaints and welcoming guests the front office manager do
the following:
 Monitors the accounts of customers;
 Supervises bedrooms allocation and reservations with Executive Housekeeper;
 Co-ordinates the reception team, organize its schedules and work;
 Ensures and applies the sales strategy application for increase average room price and
occupancy.
Besides above, the main responsibilities of front office manager are:
 To recruit, motivate and train his/her team members;
 To monitor the welcome of guests;
 To manage daily payments and billing;
 To ensure that all standards and process of hotel are applied.
The entry requirements of particular manager are as follows:
Qualifications
 HND degree in Hotel Business or similar
 Reception experience of 3 years
 Adequate education of general level
 Fluency in second language
 Good experience of reservation system
Skills
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 Sales ability
 Use of windows
 Ability to motivate and train a team
 Hospitality
 Ability to available at weekends, public holidays or work nights
 Self-sufficiency
 Adaptability
 Good memory
 Team leadership
 Discretion
 Taking initiative
 Good relationship skills
3.2 Current image of the industry
The coming time is expected to be a brighter and better for the hospitality corporations.
The landscape is quickly evolving because content marketing replaces ad campaigns,
travellers are more spending on valuable getaways and mergers of mobile with social
networks. In spite of recent challenging and contentious economic climate, one can see that
the motivation for revival of travelling is the emotional link in between quality of life and
vacations. Leisure travellers are concerning less to recent economic hardships and adopting
behaviour that confirming their emerging lifestyles. Economical staycations and several other
getaways of money saving appeared in the middle of recession has faded. Also, it is expected
a boost in spending of travel due to changed belief in experiences of quality.
Recently, it has been highlighted in the People 1st of Nation 2013 report that hospitality
sector will required to recruit around 660,200 individuals by the year 2020. However, at
present unemployment in UK has increased to 2.52 million as well as the industry has
thousands unfilled vacancies. Furthermore, the recent international study by Organization of
Economic Development and Co-operation has identified that in UK people between the ages
of 15 to 29 spend average 2.3 years as unemployed. Additionally, at their recent Tourism
Summit the British Hospitality Association set out main objective of creating 300,000 new
jobs by the period 2020 for tackling shortage of skills and unemployment.
Additionally, at present the industry is facing two challenges. First, the revolution of
ecommerce in 90s has altered the manner in which customers act and think while making
decisions related to purchasing. It gave people a platform and voice to express their dislikes
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or likes with less to no moderator for inspecting credibility of these voices. The potential
customers of a hotel can be anyone and from anywhere has access to voice their criticism,
praise or opinions. The target audience of hotel is rapidly changing and thus hoteliers are
required to ensure that they are pitching to global audiences. Moreover, the image of hotel
starts before the customer walk inside the door. Also, from the booking to their checked out,
it is something that is needed to be embedded in the organization culture. Furthermore, the
component of social media has become significant for maintaining a positive image among
public for the hospitality sector. Secondly, the hotel sector is facing challenge due to dramatic
overtaking by Online Travel Intermediaries for online bookings, who are charging good
amount as their commissions.
Besides above, foodies have driven the offerings of hotel culinary with chefs making
meals in the form of crafted art. In addition to this, hotels are now investing in appointing
celebrity chefs into their kitchen because of rise in demand of big chefs food from various
food network shows broadcasted on YouTube and TV. Furthermore, meeting planners are
using tools of social media to research, read and compare hotel reviews plus conference
centres. Therefore, according to present scenario, hotels must designation their sales team to
look over the LinkedIn profile of property as well as involve the whole team to connect
actively with planners online on regular basis.
TASK B
3.1 Operational, managerial and legislative issues resulting from recent developments
affecting the hospitality industry
Operational issues
 Increase in energy supplies demand globally have led to escalation of energy costs: Due to
heavy demand of customer services in hospitality services, there is also increase in
consumption of hospitality services and it ultimately leads to increase in cost of energy
such as light, water and non-renewable sources of energy
 Social trends, such as increase in travel, discretionary spending and consumerism have
result in more discerning buyers. Hence, service provider are becoming more sophisticated
to satisfy rising leisure time demand in the hospitality;
 Increasing competition has resulted in more options of hospitality and ultimately lead to
low ratio of occupancy. It has also outcome in unique valuable services like
accommodation packages including airport transfer, breakfast or even sightseeing;
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 Increasing expectations of employees like flexible schedules of working plus growth in
unions: It has made direct impact on the management of hospitality organizations as
demand of employee union pressurise the organize to fulfil employee needs and demands.
 Visitors rising concern regarding safety and protection from vulnerable tourism: It has
make impact on the services of the hotel has access demand from guest and customers
makes impact on the current services of hotel.
 Remoteness of damage – It is a set of rules in both contract and tort that limits the
compensatory damages amount for a wrong act. Remoteness is designed as further limit
on the action cause for ensure that liability of paying damages is places fairly on
defendant.
 Personal injury – All hospitality firms should operate safely or face potential liability for
injuries and accidents that cause to their guests. The hospitality organizations have duty to
provide sage grounds and facility to serve beverages and food that fit for consumption and
to hire qualified manpower.
Managerial Issues:
 The facilities required by customers varied from one another like from facilities of
recreation to themed accommodation, hence facilitating such services for customers in one
time are getting costly for organizations;
 Because of increasing concentration of certain needs of niche customers, segmentation of
market is increasing. Also, number of existing brand for single segment is increasing
competition and therefore focus of companies are shifting to cost cutting measures and
profitability.
 Also, globalization has significantly affected the traveller’s frequency both across and
within the nations. The industry should be managed according to global trends for
remaining competitive as well as its influences in many ways like services, food, staffing
and amenities.
 Duty of care – Hospitality owners are obliged for duty of care to those people who visit
their place. Some duties are straightforward. For instance, a restaurateur has duty of care
for providing safe food to guests. While they are not required to be insurer for the safety of
guests. Due to their huge range of operations, hospitality managers can meet a series of
duties of care, including:
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 Offering safe premise;
 Serving beverages and food fit for consumption;
 Serve alcoholic beverages;
 Hire qualified employees;
 Train employees adequately;
 Terminate member who pose danger for other;
 Warn to unsafe events;
 Safeguard the property of guest.
Legal Issues:
 There are rules and regulations focusing on hygiene standards and hence hotel sector has
to ensure that food is preparing in hygienic environment for customers safety. This can be
done by hotel manager by ensuring that its staff members are aware about hygiene practice
and policies and train them to use different techniques of preparing food. Then employees
are held responsible for their conducts and require to adhere with recommended process
and policies. The hotel manager also provide first aid equipment, masks, gloves and hats
to avoid poisoning and present spread of disease at the place where food is prepared.
 The agreement of hotel management governs the relation of hotel operators and hotel
owner. Thus, the problems arise at the time of employment and employees matters. An
unhealthy relation between employer and employee is the outcome of such issues;
 Hotels are required to comply 1964 Licensing Act for offering alcoholic products to
customers;
 In relation to health and safety, the 1974 Act of Health and Safety at Work requires that
hospitality corporations should ignore using material that may cause injury or any type of
illness to their members.
4.1 Predicted future trends and developments in hospitality
The following are predicted developments and trends in hospitality industry:
Management trends – In this category the trend is reflecting an increasing number of
entrepreneurs initiating every year a new business. Jobs from small organizations are faster
vanishing that reflect is rising entrepreneurship from novel generations. One more trend from
this perspective is philosophy of organization more on the basis of information rather than the
traditional control and command mode. Many larger operators and companies have
modernized their operators for experiencing great flexibility.
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Technological trends – Over the last 20 years in technology, radical changes have been
observed, which will continue as well. The evolution of data mining and artificial intelligence
have facilitated automaton abilities and supports in solving issues more effectively than
modern computers. Also, through the systems of sophisticated database operators are enable
to have complete information in relation to customers that have changed their preferences and
choices for rooms plus dining.
Environmental trends – Rising sensitivity to environment problems like global warming has
forces various industries including hospitality to diagnose the significance of green
environment and hence regulations are put in practice for the society’s interest.
Staffing trends – Hotels are facing employee retention challenges and further rising
expectations for compensation is main concern.
Demographic trends – The growing importance of youth in economy has develop a trend of
more millionaire of below 30 years of age. This trend is because of strengthening
development of baby boomers in the arena of dot com.
Wellness and health trends – The purchase decisions of customers are now influenced by
healthy food options available. The preference of customers has been shifted from sodas and
ice-creams to yogurt dishes or salads. Moreover, health awareness of dinner demanding
meals prepared from fresh ingredients and in hygienic environment.
4.2 Impact analysis for the predicted trends and developments
The impact of above trends have been analysed as follows:
 Impact of management trends – The rising specialists demand for task-oriented teams have
lessened the experienced industry personnel requirement. The trend of entrepreneurship
can influence a range of new travel and hospitality businesses to appear at novel
destinations or for other professional niche offerings.
 Impact of technological trends – The novel technique may improve the industry’s
effectiveness by controlling the overall costs. The improved database system of hotel will
enable its owner to offer personalized services by ensuring return visits from loyal
customers.
 Impact of staffing trends – It is getting more critical for hospitality organizations to replace
employees in job attritions situations. The best talents retention cost have multi fold in past
years as well as costs of health care have influenced the industry.
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 Impact of environment trends – Hospitality associations are impacted by various legal
requirements and obligation to get license plus committed to green revolutions.
 Impact of demographic trends – Economic success of youngsters would result in more job
turnover.
 Impact of wellness and health trends – Such trend has forced hospitality firms to make
balance between wellness and health through cost effective measures.
CONCLUSION
It can be concluded from above report that the two aspects composed in hospitality
industry, i.e. accommodation and sustenance. Millions of tourists visit to London every year
and thousands of rooms are required to provide accommodation to these visitors. This
industry is having huge diversity and scope, as offers employment to manpower that belongs
to different backgrounds. The paper is revealing that various professional bodies of UK are
providing services for recruiting staff plus running hotel management operations smoothly.
Moreover, there are different types of degrees, qualifications and training required to work in
this industry. But the hospitality industry is not free from legislative, managerial operational
issues and thus organizations working in it should be adopted plus change on the basis of
demands in the market. While doing so, the companies should effectively focus on excellent
customer service and staff retention.
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