Roles and Contributions of the Contemporary Hospitality Industry

This presentation discusses the different types of businesses within the hospitality industry, operational and functional units, and contributions to the economy. It also covers current trends and ways to meet customer needs. The impact of external factors on the development of the industry is also discussed.

The Contemporary Hospitality
Industry

INTRODUCTION
 Hospitality industry can be defined as inns, motels, hotels and such businesses that
provide short term lodging. This presentation is going to discuss roles of operational
and functional units of hospitality industry. Further, it will discuss some ways by which
this industry improves local, national and international economic condition.

Different types of businesses within hospitality industry along
with services that they offer
 Within service industry, hospitality industry is a broad category. Some different types of
businesses that fall under hospitality industry include:
 Accommodation: This broad sector of hospitality industry is accommodation
comprising with different types of hotels and facilities.
 These facilities have provision of overnight accommodation.
 Some different types of hotels or accommodation that are common in this industry
include: luxury hotel, budget hotel, hotel spa and bed and breakfast hotel.
 Food and beverage: It is one of the main largest sectors in hospitality industry.

CONT…
 Entertainment: It is significant part of travelling.
 There are number of top tourism destinations where people can entertain themselves by
enjoying theme park, museum, zoos and marinas.
 Walt Disney resort, Magic Kingdom park are some examples of entertainment business.
 All these businesses in hospitality industry play a vital role as it attracts customers and
employers find easier in improving economic condition.
 Britannia, British hotel group offer banqueting functions, health club membership,
food, attractive room, Wi-Fi and other services.

Operational and functional departments within hospitality
business
 Some important functional departments of hospitality business that help their business
in becoming successful as well as accomplishing goals include:
 Front office department: Front office department is an important operational
department of hospitality business including Britannia hotel. Front office staff are
responsible for satisfying customer at their first meeting.
 Food and beverage service: Food that made in kitchen as well as drinks prepared in
bar need to go to customers in and decent and timely manner.

CONT…
 Marketing: It is a functional department of hospitality business that is
responsible to attract and influence customers for buying products and
services of their company.
 Market research, identifying current needs of customers and providing
all these details to purchase and sales department for satisfying
customers are some main tasks that this department perform.
 HR: This department of Britannia performs number of tasks such as:
designing roles, recruiting skilled employees, motivating them, retaining
them and firing underperformed employees in an effective manner.
 All these departments make Britannia able in accomplishing its
goals as well as taking competitive advantages.

Contribution of hospitality industry to local, national and
international economies
 Hospitality and tourism sector play a vital role in improving economic condition.
Hospitality sector accounts for over 11% of global GDP. It contributes in improving
economic condition by:
 Increasing employment: Britannia hotel group employs around 12000 employees and
on the basis of this number, it can be said that hotels or hospitality industry play a vital
role in improving economic condition. Economy improves when there is a cash flow in
market and this flow can be generated when people have employment opportunities.

Interrelationship of functional units
 Functional and operational units of hospitality industry have interrelation with each
other’s and for success, there is requirement of staff of all these departments to
communicate with each other’s by using effective communicational modes.
 Marketing and sales: These both departments have interrelationship as marketing
department needs to give detailed information of market research to sales.
 Sales department increase selling on the basis of gathered market research
information.

Use of franchising and licensing agreements that influenced the
global development of hospitality industry
 By using franchising method, hotels and companies can use popular parenting company for prescribed
period of time.
 By using licensing and franchising modes of business, companies can provide services indifferent areas and
countries.
 It is beneficial for franchising as well as parenting company as it can increase market share and image of
company.
 It can increase global economy and people of different areas and countries can get employment
opportunities.
 On the basis of this, it can be said that these agreements influence global development of hospitality
industry.

How global growth, licensing and franchising contributed to the
economic worth of hospitality
 Increasing use of licensing and franchising modes of business have increased economic
condition.
 For earning money, people franchise popular brands and provide services of parent
company in their suitable areas.
 It increases market share of parent company and people where franchise company
offers services can get employment opportunities.
 It can lead global growth and can improve economic condition as well.

Implication of potential and current trends in hospitality
industry
 Downward political trends lead to negative impacts on hospitality industry. This sector
has faced decreased revenue due to political changes and implication of number of laws
related to employment, tax and services. Increased service tax has decreased sales as
customers do not prefer to pay high tax charges. So, on the basis of this, it can be said
that political implications have affected this industry to the great extent.
 Some other potential trends such as: Chabot, mobile app, digitized room keys, self-
check in and technology advancement has changed hospitality industry to the great
extent.

CONT…
 So, on the basis of this, it can be said that initially, hospitality industry might face
problems regarding cost but gradually, it can develop or expand its business and can
satisfy current trends.
 Sustainability or decreasing carbon emission can also affect this industry.
 This trend has also increased pressure on this industry for decreasing waste and using
such materials that can be reused and recycled.
 It can make this industry able in attracting as well as retaining customers with business
for the long run.

Ways to meet current needs and trends of hospitality
 Britannia is striving hard in satisfying customers’ needs
and current trends of hospitality industry.
 Sustainable hotels, artificial intelligence, online booking,
online check in, check out, and robot staff are some
current trends. It is found that hospitality industry and
Britannia is striving hard by implementing software, using
AI and becoming sustainable.
 It uses safety and hygiene measures, promote contactless
communication among staff. All these activities and
technology can make it able in satisfying customers.

Impact of external factors on development of hospitality
industry
 Business environment is made ups of internal and external factors. There are number of
external factors that can affect overall development of hospitality industry such as:
social changes, technological changes, political factors and economic factors.
 Changing customers’ behaviour and shifting towards organic and sustainable
products can increase pressure on hospitality industry to change methods

CONT…
 It can increase cost but after making changes, this industry can increase sales and
develop business.
 Advanced technology and using it to the great extent by companies can also increase
pressure on this industry. It can also increase overall cost that is one of the main barrier
to development.

CONCLUSION
 It has been summarised from the above study that hospitality industry plays a vital role
in improving economic condition. This presentation has shown different businesses and
functional units if hospitality industry. Further, it has shown impacts of social,
technological and other factors on development of hospitality industry.

REFERENCES
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Hospitality Management.
 Jones, P. and Wynn, M.G., 2019. The circular economy, natural capital and resilience in
tourism and hospitality. International Journal of Contemporary Hospitality
Management.

CONT…
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