Hospitality Industry Analysis and Its Importance

This assignment provides an in-depth analysis of the hospitality industry, highlighting its importance in the business environment. It covers various sectors like hotels, restaurants, bars, and more, emphasizing their individual significance in customer satisfaction. Additionally, it discusses the concept of hospitality as a broader industry, encompassing accommodation, food, and beverages, and its substantial impact on the global economy. The assignment references relevant books, journals, and online sources to support its findings.

Contemporary Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
P1 Different types of business within the hospitality industry and the diverse products and
services they offer.......................................................................................................................1
P2 Range of operational and functional departments................................................................2
P3 Contribution of the hospitality industry to local, national and international economies.......3
CONCLUSION................................................................................................................................4
REFRENCES...................................................................................................................................5

INTRODUCTION
Hospitality is the widest and fast growing sector in the economy. It mainly provide
services to the guest coming in hotels, restaurant, bars, pubs and so on. Hospitality sector mainly
work for satisfaction of their customers because they are the one who can build as well as
destroy image of an organisation (Deery and Jago, 2015). In this report hotel Marriott, UK is
used for underlining importance of organised business in respective sector. This project is going
to explain, concept of hospitality industry and its different sector in which it is divided. Along
with the range of operational as well as functional in the business and contribution of hospitality
sector at local, national and international economies.
TASK
P1 Different types of business within the hospitality industry and the diverse products and
services they offer
Hospitality is the widest sector which comprise of various businesses in it such as hotel,
restaurant, bar, pubs and so on. Main motive of all these is to provide better goods and services
to customers as well as make their needs satisfy. In respective industry products and services are
offered by keeping in mind each and every customers budget. Moreover, there are some tangible
and intangible nature of the hospitality industry are as follows :- Tangible – These are the factors which can be seen or touched, it include interior as well
as exterior design of hotel, restaurant, bar, pub etc.. Along with this, it include quality of
the food and beverages offering by the different section of hospitality industry. Moreover
physical products are tangible For example: food and drink, hotel room.
 Intangible – On the other hand, intangible are those factors that are not touched and it
include services offering by the hospitality sector enterprises (Law, Buhalis and
Cobanoglu, 2014). Satisfaction of customers is gained by the quality of services which is
intangible and it is more important compare to tangible.
Apart from this there are different type of sectors involve in the hospitality industry such
as hotel., restaurant, bars, pubs and so on. Explanation of these are as follows :- Restaurants – It is a place where an individual eat meal and have to pay against it. In
restaurants order food is served by the waiter or waitress on the table. Bill York is the
restaurant of United Kingdom its address is 12 Coney St, York, YO1 9NA. It is located
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right in the city centre and open for breakfast, lunch, other snacks in between and dinner.
Along with this, there is also private space available for up to 20 persons which is perfect
for celebration, special occasion as well as for other gatherings. Hotel – It is the organization which provide paid lodging services to their customers for
short-term basis (Lub and et.al., 2012). Facilities provided are modest quality mattress
with small rooms in 1 and 2 star hotels. Whereas, in 3 or 4 star have high quality of bed,
dresser, TV, other kitchen facilities, en-suits bathrooms and so on. Apart from this 5 star
hotels provide some additional services such as swimming pool, business centre services,
childcare, gymnasium and many other. For instance, Marriott hotel is five star hotel and
their products are hotel as well as resort.
 Bars and Pubs – These are the places which mainly offers beverages options and some
light food items also. Along with this in bars and pubs there is total source of customers
entertainment such as music or live shows. Oriole is bar of United Kingdom its address is
E Poultry Ave, London EC1A 9LH, UK.
P2 Range of operational and functional departments
Marriott is the part of hospitality industry which is founded in 1927as well as Its founder
is J. Willard Marriott and Alice Marriott. They are servicing their products i.e., hotels and
restaurants at worldwide level. Headquarter of respective hotel is in Bethesda, Maryland, United
States ans they are established in approx. 6,520 locations. Vision – To become the premiere provider and facilitator of leisure as well as vacation
experiences at worldwide level. Mission – To enhance living of customers by creating and enabling unsurpassed vacation
as well leisure experiences.
 Organisational structure of Hotel Marriott – This hotel is following hierarchy of
authority organisational structure in the amount of authority increases with level of
person get higher or an company is in hierarchy (Radojevic, Stanisic and Stanic, 2015).
In this main power is to the person sitting at top level with holding an position as well as
having authority of decision making. In simple term it can be said that, responsibilities in
the Hotel Marriott is given by top level department and performed by other middle as
well as lower level employees.
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Every organisation have several departments same as hotel Marriott also and their
function out of them two important are operational and functional (Ryu,Lee and Gon Kim,
2012). There are several functions which is performed within these divisions these are as follows
:-
Operational department - Managing the Quality – Quality management play necessary role in the hospitality
industry because fine quality of products help Marriott in maintaining their image in
market area.
 Forecasting - It refers to the procedure of making an approximation related to several
events which may occur in the future. In operation department of hotel Marriott,
forecasting is related to computation of customer’s demand goods and services can be
produced as per the requirement. Thus, manager of respective hotel gets knowledge
about what to produce, when to produce as well as how to produce in relation with the
need of customer’s.
Functional Department - Finance – Finance is the backbone of business without its proper management no
business can manage their working in proper manner (Ryan, 2015). Functional
department of Hotel Marriott manage finance and funds required for day to day activity
as well as a lot funds to for other works.
 Human Resource – It is the most important function performed by the functional
department of Marriott Hotel. Because without proper human resources management day
to day activities cannot be performed in effective manner and it may result in unsatisfied
customers. Thus, it is necessary to manage human resource as per the requirement and
perform activities in effective manner.
P3 Contribution of the hospitality industry to local, national and international economies
Hospitality industry is the widest sector which is contributing at local, national and
international level. Explanation of these are as follows :-
Contribution at local level - Marriott having a great impact on the customer's experience
who are from the different regions. In London, customers who belongs to different regions as
Horrow, startford and so on are more likely to getting experience of the services of Marriott.
Main objective of this organisation is to providing quality services to customers are more likely
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to getting experience of luxury and quality services. The organisation also provides employment
services to individuals for enhancing their standard of living.
Contribution at national level - There are several contribution of hospitality industry at
national level some of them are as follows :- Employment – In hospitality industry, number of people working as per the data of last
12 months to June 2018 was 18,000 fewer than the previous year. Apart from this, Just
over 1.75 million people were employed in the respective sector at the end of Jun 2018,
and it have a drop of 1% from the 1.77 million at the end of June 2017 (UK hospitality
employment, 2018).
 Revenue contribution – The same sector is one of the important segment of
accommodation sector in the UK. As per the data of 2015, it has been identified that hotel
organisations generated total revenue of 17.4 billion British Pound (Hotel industry in the
United Kingdom, 2018). It is contributing more amount compare to other accommodation
services.
Contribution of at International level – Operating income of the respective hotel at
worldwide level from 2007 to 2017 is amounted approx. 2.36 billion U.S. Dollars. Marriott is
founded in 1927 and they have more than 6,000 hotels till now at worldwide level. As per the
data of 2016, same hotel have 1.26 million rooms at global level (Operating income of Marriott
International worldwide from 2007 to 2017 (in million U.S. Dollars), 2018).
CONCLUSION
From the above discussion it has been concluded that hospitality is the widest industry of
business environment and it is comprises of several sectors. Each and every sector such as hotel,
restaurant, bar, disc, pub and so on have their own importance in satisfaction of customers. Apart
from this, concept of hospitality industry is much more wide than its definition as well as it is
comprise of some major areas such as accommodation, food and beverages.
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REFRENCES
Books and Journal
Deery, M. and Jago, L., 2015. Revisiting talent management, work-life balance and retention
strategies. International Journal of Contemporary Hospitality Management. 27(3),
pp.453-472.
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.
Lub, X. and et.al., 2012. Different or alike? Exploring the psychological contract and
commitment of different generations of hospitality workers. International Journal of
Contemporary Hospitality Management. 24(4), pp.553-573.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51, pp.13-21.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3), pp.340-361.
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.
online
Operating income of Marriott International worldwide from 2007 to 2017 (in million U.S.
Dollars), 2018.[Online].Available
Through<https://www.statista.com/statistics/256251/operating-income-of-marriott-
international/>
UK hospitality employment, 2018.[Online].Available
Through<https://www.thecaterer.com/articles/535434/uk-hospitality-employment-falls-year-on-
year-for-first-time-since-recession>
Hotel industry in the United Kingdom, 2018.[Online].Available
Through<https://www.statista.com/topics/3146/hotel-industry-in-the-united-kingdom-uk/>
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