Hospitality Industry Trends and Analysis

This assignment requires a research paper analyzing current trends within the hospitality industry. The focus areas include understanding factors influencing customer loyalty, the impact of information and communication technologies (ICT) in hospitality, and guest perceptions regarding various aspects of hotel service. The analysis should draw upon academic sources and real-world examples to demonstrate a comprehensive understanding of these key trends.

Contemporary
Hospitality

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 2............................................................................................................................................1
Chapter 1- Current scale, scope and diversity of hospitality industry....................................1
Chapter 2- Role of hospitality organisations and professional bodies (1.3)...........................2
Chapter 3- Operational, managerial and legislative issues resulting from recent developments
................................................................................................................................................4
Chapter 4- Current image of hospitality industry...................................................................5
Chapter 5- Justified predictions for future trends and developments in hospitality...............6
Chapter 6- Impact analysis for predicted trends and developments.......................................7
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

LIST OF FIGURES
Figure 1: Unlocking door with Smartphone....................................................................................7
Figure 2: Boutique Hotel.................................................................................................................8

INTRODUCTION
Hospitality business is a broad term that also includes food service, accommodation,
entertainment of customers and providing services in that way so that their experience will
become long lasting. At present time, this sector is growing rapidly and earning huge amount of
profit (Bharwani and Jauhari, 2013). According to World Travel and Tourism Council “this
sector is one of the largest and most dynamic industries of today's global economy because it
contributes approx 10.3% in global GDP and creates 234 million jobs approximately.” This
project will explain about current scale, scope and diversity of hospitality industry. Along with
this, it explains the different organisational structure of hospitality industry. It will also state
about role of hospitality related organisations and professional bodies and will also describe
about the requirement of staff. Further, roles and responsibilities are explained that are required
for carrying out business activities in hospitality sector.
TASK 2
Chapter 1- Current scale, scope and diversity of hospitality industry
Hospitality is one of the largest industry through out the world and every year, it is
growing by 5% and one million travellers making a great effect on the culture and environment
of the destination countries. This sector is developing continuously specially in Africa, The
pacific, Asia and Eastern Europe (Woodside, Ramos Mir and Duque, 2011). There are many
factors that influences the development of hotels in negative manner which are given below-
 Economic issues that includes increasing price of fuel etc.
 Political issues such as security concern and legislation related to visa and passport
requirements etc.
 Terrorist attacks
 Demographical changes such as aging population, new family models etc. (Bill Xu and
Chan, 2010)
 Growing population in developing countries and also increasing urbanization etc.
The Scope of hospitality and tourism industry is wide because it is providing better
quality of services and facilities to its customers. It does not include only hotels and restaurants
but also consider various types of goods or services that are providing by industry such as
casinos, clubs, resorts, camps, games, bars, entertainment, passenger transportation etc.
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There are many factors that influences hotels such as changing preferences of consumers
and different demands in each sectors or regions etc. Hotel sectors provides various types of
services that can be intangible as well tangible services that provides various advantages to its
end users (Davidson, McPhail and Barry, 2011). This indicates the diversity of hospitality
industry which is depicted in the varied products and services such as conference and
banqueting, food, drinks, accommodation, leisure facilities etc. In this sector, product can be
defined as the things which provides great experience to the tourist. It includes various stages
such as-
 Anticipating
 Planning
 Booking
 Travelling
 Evaluating
Service provider has many objectives which are given below-
 To create memories of consumers in that manner so that they will become loyal users.
 To provide different values to various target market (Harkison, Poulston and Ginny Kim,
2011).
 To provide better quality of goods or services so that their experience will become good.
 To maximize customer satisfaction that can be done by using latest and unique
technology.
Chapter 2- Role of hospitality organisations and professional bodies (1.3)
Following are the examples of hospitality related organizations and professional bodies:
British Hospitality Association (BHA)
This is regarded as a member organization as well as agenda setter for the hospitality and
tourism industry. It works towards the promotion of interests of operators, owners and brands
related to a variety of tourism organizations such as hotels, serviced apartments, visitor
attractions, food service and restaurants. BHA acts as a facilitator for economic growth and
international competitiveness (About, 2017).
British Institute of Innkeeping
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This is a professional body that is representative of individuals who work across licensed
hospitality industry. It plays an important role as it works towards promoting professional
standards within the industry (The British Institute of Innkeeping, 2017).
Institute of hospitality
This is a professional body which is internationally renowned for promotion and
advancement of education as well as quality standards within the hospitality industry.
International recognition is conferred on an organization by the Institute of GHospitality (IoH) if
it meets the benchmark standards set by the IoH.
The number of hospitality industries and bodies are increasing day by day but these
organisations' objectives are as follows-
 Designing, implementing and monitoring of strategies with in hospitality and tourism
industry so that it can provide services to the customers as per their requirements.
 To maintain coordination among different level of management (Ip, Leung and Law,
2011).
 To organise resources and funds in proper manner so that company can carry out its
activities in effective and efficient manner.
There are different types of institutions with in hospitality industries such as social and
environmental organisations, government and non-government enterprises and state sponsored
economic agencies (Ramanathan and Ramanathan, 2011). Because of changing nature of
industry, these bodies also play a significant role such as to reorganise the trans-territorial, sub-
national and super national lines on various level of enterprise.
 Sub-national level- It includes local, regional and city governments' working on political
issues and are taking corrective action for sustainable hospitality development and are
making various policies and strategies so that it can achieve its desired result.
 Super national level- It includes different organisations such as UNWTO (United
Nations World Tourism Organisation), WTTC (World Travel and Tourism Council) and
The European Union etc. which makes various policies that influences the destinations of
tourism policies on a national and sun national level (Harrington and Ottenbacher, 2011).
 Trans-territorial level- It includes trans-border regional agencies.
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These governmental bodies play an important role in the development of hospitality and
tourism sector because they makes various policies and every company has to follow it that
assists in the development of hospitality sector.
Chapter 3- Operational, managerial and legislative issues resulting from recent developments
At present time, people's living of standards are improving that's why scope of hospitality
sector are growing rapidly. It provides integrated services to its customers such as food, shelter,
transportation, travel, entertainment etc. A number of operational, managerial and legislative
issues arise from the recent developments which affect the hospitality industry.
Hospitality industries includes various services such as hotel, motel, pub, cafe etc. To run a
successful business in the market, is not an easy task because it requires to covers all essential
factors that influence the growth and development of industry. In hospitality sector, there are
various types of issues which are given below-
Operational issues
ITC hotel should require to generate products or services as per requirement of users so that
it can meet with their expectation at international level. These issues can be arise at firm level as
well as unit level that affects the growth of company. For dealing with this problems, enterprise
makes operational strategies which assists in creating standard quality of goods or services.
 Standard operating procedures- Recent developments have leads to the emergence of
standard operating procedures. These have led to alterations in the daily operations of the
organizations of hospitality industry. The hotels and restaurants have to adhere to the
standard operating procedures which require addition dedication in terms of cost, time
and human resources.
 Flexible working- This is another operational issue due to recent development which
affects hospitality industry. As there has been increase in working couples, the demand
for flexible working has also increased. Thus, hospitality organizations have to adopt
flexible working practices.
Managerial issues
Management of large firm is not an easy task. If company wants to manage activities
effectively and efficiently, then it should hire that person who has some experience and
knowledge related to this field. It includes various problems such as financial issue, capital;
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employment etc. which creates barriers in the development of company. The various
management issues are as follows: Performance management- This is a managerial aspect that requires the managers of
hospitality organizations to monitor, plan and review the goals of an employee, it also
involves reviewing the employees overall contribution to the organization (Ryu, Lee and
Gon Kim, 2012). Hence, the hospitality organizations have to implement the process of
performance management to enable the employees to reach their goals effectively.
 Food safety- Another recent development that affects hospitality industry is the
implementation of food safety management systems. At present time, organizations are
providing better customer services and are investing proper amount in ancillary facilities.
As the customers now demand superior quality food, the hospitality organizations have to
take care of the food safety which is done by implementing food safety management
systems.
Legal issues
Government makes many laws and legislation that protects the rights of consumers as well
as of companies. Before starting any business, firstly company need to take license from
authority. Government has made many laws related to hospitality industry such as Food and
drink safety, Anti-discrimination, Alcohol licensing, consumer protection and trade practises etc.
These laws have to be followed by hotels otherwise, it has to pay penalty as per regulation.
Following are the various legal issues that affect hospitality industry:
 Minimum wage- There are various laws which require the hospitality organizations to
provide minimum wages to the workers as specified by the legislation. Hence, this
impacts the industry as the salary structure is to be set accordingly.
 Discrimination- This is another legal issue that hospitality industry is affected from. The
organizations in the chosen industry have to ensure that their processes provide fair and
just treatment to all the employees.
Chapter 4- Current image of hospitality industry
The current image of hospitality industry can be discussed with respect to a number of
aspects. These include customer focus and culture, restaurant and hotel guides, media exposure,
quality improvement etc. The hospitality industry is customer focused in all areas. Various
organizations including restaurants, hotels, pubs etc. design and develop their products according
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to the needs and wants of the customers. The organizations in the chosen industry are
continuously researching about the unmet needs of customers so that products and services can
be make suitably.
Quality improvement is another aspect that clearly depicts the current image of hospitality
industry. This industry is considered as one which pays considerable attention towards quality of
products and services. There are various quality standards that are followed by organizations in
all areas.
Goodwill is very important element that assists in increasing sales and revenue of company
because in current scenario, consumers take services from that company which has good brand
image and reputation in the market (Ryu, Han and Jang, 2010). Organisations use advanced
technology which helps them to provide services as per specified standards. The following
current developments depict the image of the in hospitality industry are as follows-
 Advanced technology- Hotels uses a biometric system in which guest has to press his
fingerprint at the time of check-in and check-out etc.
 Direct booking- Today, every hotels provides online services by which person can
reserve their place via computer and internet.
 Mobile booking- Now it is available as an application for smartphones, android tablets
etc. Through this, consumers can book hotels rooms, flights tickets, rental cars etc.
 Sustainability- Organizations in hospitality industry become completely self sufficient
by supplying their own energy, especially in rural areas (Law, Buhalis and Cobanoglu,
2014).
 Boutique hotel- It is small in size but it distinguishes itself by their intimate atmosphere
or uniqueness and by offering personalized attention and styled accommodation which
play on a motif.
 Mega Hotels- Development of mega hotels which is used for multi-purpose with casino,
theme park etc. (Crick and Spencer, 2011).
Chapter 5- Justified predictions for future trends and developments in hospitality
From the last 20 years, there are many tremendous changes in this sector such as now
people spend their leisure time and holidays in travelling to any tourist places, that contributes in
the development of hospitality sectors (Kusluvan and et.al., 2010). There are many developments
in these industries, some of them are as follows-
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 Use of latest technology- Many latest technologies will be used which will assist in
making life easy and comfortable. This is justified because globalisation has also
affected hospitality industry because in current scenario, intelligent hotels are using
advanced technology such as biometric system in which every guest have to press their
finger while doing check-in and check-out. This system is very helpful in providing
information about customers. It introduces e-commerce by which people can book their
rooms or tickets via internet in an easy manner and if there is any change in their plan
then they can make changes as per their comfort (Jani and Han, 2011). This invention is
very helpful for the consumer because they can reserve rooms as per their choice.
Figure 1: Unlocking door with Smartphone
(Source: Nash, 2015 )
 Boutique Hotels- Mega and boutique hotels will form a potential future trend for
hospitality industry. This is because the customers are being more inclined towards
boutique hotels (Janta, 2011). Hence, this will become a potential future trend for the
hospitality industry.
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Figure 2: Boutique Hotel
(Source: The best boutique hotels in London, 2017)
 Eco-Lodging- There are another development which is green and eco-lodging in which
organizations provides casino, theme park, games etc. to its consumers so that their
experience will become good and they will become loyal users towards the organisation
(Kong, Cheung and Qiu Zhang, 2010).
Chapter 6- Impact analysis for predicted trends and developments
For analysing the impact of recent trends, it conducts an analysis by which it can know
about the changes in choice, preferences of consumers. So for getting desired result,
organisations should evaluate or monitor the market situation so that it can estimate future
demand of its products and services (King, 2010). This analysis provides assistance in
accomplishing objectives and goals of profit maximization and revenue generation.
 Impact of latest technology- One impact of this trend is that mentioned industry can
minimize its cost on less demanded product and services in future which leads to less
wastage of expenditure for consumers. Use of latest technology will assist in increasing
the efficiency of processes thus enhancing the speed of operations of the organizations.
Hence, it will have a positive impact on the organizations (Hsieh, 2012). After
introducing these changes, the companies in the hospitality industry can utilize their
resources in proper and accurate manner which assists in achieving desired result or
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outcome. By using latest technology, organisation can generate huge amount of profit
because with the help of this, firm can utilize its available man power and resources in
effective and efficient manner by which company can attain its long term objectives and
competitive advantages over its rivals. It also affects in technical sector of the company
that assists in increasing historical price, trading volume by providing customize services
to its target market so that they can attract towards enterprise and can sustain in the firm
for long period of time (Ramanathan and Ramanathan, 2011).
 Impact of boutique hotels: The trend of Boutique hotels will impact hospitality industry
in a positive as well as negative manner. As boutique hotels are themed, it will provide
the industry with an opportunity to invent more themes and design the hotels according to
them. This will help in satisfying the unmet needs of the customers thus increasing the
potential customers base of the organization. However, it will also add to the costs of the
organizations and there will be less chances of covering the costs incurred in designing
boutique hotels. This is because it will target only those customers who can pay premium
prices. Moreover, boutique hotels are characterized by unique architecture and interior
design which make them highly expensive to be constructed. Hence, this will not assure
certain profits for the organizations (Harkison, Poulston and Ginny Kim, 2011). But, it
will provide numerous innovative options for the hotel organizations to attract potential
customers as well as retain the existing customers through lavish facilities and
ambiances. Furthermore, as boutique hotels are of the found celebrating a strong culture
in the form of color, art, locally sourced materials etc., these also become an attraction for
the customers who are culture lovers.
 Eco- lodging- This is a trend that is inspired by the desire of the customers for
responsible lodging thereby adhering with the practices of green living. The Eco lodges
will help in building the image of the hospitality industry as environmental friendly. The
customers nowadays have become increasingly conscious and aware about the negative
impacts of organizational activities of environment (Woodside, Ramos Mir and Duque,
2011). They have therefore started preferring eco-friendly options. Eco lodging will thus
attract these customers and will collectively contribute towards betterment of the natural
environment. It will also help organizations in developing their image among customers
thus leading to an increase in the customer base.
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CONCLUSION
From the above project, it is concluded that hospitality sector contributes more in the
development of country. Hotel industries have wider scope which includes not only restaurants
and hotels but also consider casino, pub, bar, theme park etc. In this sector, company can select
any one structure from tall, flat and matrix framework that will provide direction to the company
in the right way and will assist in achieving the desired result. There are many professional
bodies like UNWTO which protects the rights of consumers as well as of company. In this study,
it is analysed that staffing is very important because it aids in serving the users as per their
requirements that helps in converting them into loyal customers. Every employees should be
skilled and trained so that they can perform their duties as per specified standards that will assist
in achieving specified target.
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REFERENCES
Books and journal
Bharwani, S. and Jauhari, V., 2013. An exploratory study of competencies required to co-create
memorable customer experiences in the hospitality industry. International Journal of
Contemporary Hospitality Management. 25(6). pp.823-843.
Bill Xu, J. and Chan, A., 2010. A conceptual framework of hotel experience and customer-based
brand equity: Some research questions and implications. International Journal of
Contemporary Hospitality Management. 22(2). pp.174-193.
Crick, A. and Spencer, A., 2011. Hospitality quality: new directions and new challenges.
International Journal of Contemporary Hospitality Management. 23(4). pp.463-478.
Davidson, M., McPhail, R. and Barry, S., 2011. Hospitality HRM: past, present and the future.
International Journal of Contemporary Hospitality Management. 23(4). pp.498-516.
Harkison, T., Poulston, J. and Ginny Kim, J. H., 2011. Hospitality graduates and managers: the
big divide. International Journal of Contemporary Hospitality Management. 23(3).
pp.377-392.
Harrington, R. and C. Ottenbacher, M., 2011. Strategic management: An analysis of its
representation and focus in recent hospitality research. International Journal of
Contemporary Hospitality Management. 23(4). pp.439-462.
Hsieh, Y. C., 2012. Hotel companies' environmental policies and practices: a content analysis of
their web pages. International Journal of Contemporary Hospitality Management. 24(1).
pp.97-121.
Ip, C., Leung, R. and Law, R., 2011. Progress and development of information and
communication technologies in hospitality. International Journal of Contemporary
Hospitality Management. 23(4). pp.533-551.
Jani, D. and Han, H., 2011. Investigating the key factors affecting behavioral intentions:
Evidence from a full-service restaurant setting. International Journal of Contemporary
Hospitality Management. 23(7). pp.1000-1018.
Janta, H., 2011. Polish migrant workers in the UK hospitality industry: Profiles, work experience
and methods for accessing employment. International Journal of Contemporary
Hospitality Management. 23(6). pp.803-819.
King, C., 2010. “One size doesn't fit all” Tourism and hospitality employees' response to internal
brand management. International Journal of Contemporary Hospitality Management.
22(4). pp.517-534.
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Kong, H., Cheung, C. and Qiu Zhang, H., 2010. Career management systems: what are China's
state-owned hotels practising?. International Journal of Contemporary Hospitality
Management. 22(4). pp.467-482.
Kusluvan, S., and et.al., 2010. The human dimension: A review of human resources management
issues in the tourism and hospitality industry. Cornell Hospitality Quarterly. 51(2).
pp.171-214.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management. 26(5). pp.727-750.
Ramanathan, U. and Ramanathan, R., 2011. Guests' perceptions on factors influencing customer
loyalty: An analysis for UK hotels. International Journal of Contemporary Hospitality
Management. 23(1). pp.7-25.
Ryu, K., Han, H. and Jang, S., 2010. Relationships among hedonic and utilitarian values,
satisfaction and behavioral intentions in the fast-casual restaurant industry. International
Journal of Contemporary Hospitality Management. 22(3). pp.416-432.
Ryu, K., Lee, H. R. and Gon Kim, W., 2012. The influence of the quality of the physical
environment, food, and service on restaurant image, customer perceived value, customer
satisfaction, and behavioral intentions. International Journal of Contemporary Hospitality
Management. 24(2). pp.200-223.
Woodside, A., Ramos Mir, V. and Duque, M., 2011. Tourism's destination dominance and
marketing website usefulness. International Journal of Contemporary Hospitality
Management. 23(4). pp.552-564.
Online
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