The Contemporary Hospitality Industry

This document explores the different types of businesses within the hospitality industry, the range of operational and functional departments, and the contribution of the industry to local, national, and international economies. It also discusses the interrelationship among operational and functional units, the use of franchising and licensing agreements, and the skill gaps in various operational roles.

The contemporary
hospitality industry

Table of Contents
The contemporary hospitality industry............................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Different types of business within hospitality industry...............................................................3
Range of operation and functional department............................................................................5
Contribution towards local, national and international economies.............................................6
Interrelationship among operational and functional units...........................................................7
Use of franchising and licensing agreement affect global development of industry...................7
Examine global growth, licensing and franchising contributed economic worth.......................7
Range of different operational roles............................................................................................8
Skill essential for roles along with current skill shortages..........................................................9
Skill gaps with relation to various operational roles...................................................................9
Examine skill gap in hospitality business with valid solutions.................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The industry of hospitality is most best options of revenue creation in order to develop more
options of economises within industry. Industry of travel and tourism is independent segment. In
UK, this industry contributes more towards economy as most of people gets employment
opportunity (Arbelo, 2018). This is reason of increasing high competitive and changing
environment. The services in which it deal with restaurant, food, pubs etc. The chosen
organisation is this report is Fairmount hotel. It is one of the leading 5 star hotel that delivers its
services in parts of UK. The report highlights Different types of business within hospitality
industry, Range of operation and functional department, Contribution towards local, national and
international economies, Interrelationship among operational and functional units, Use of
franchising and licensing agreement affect global development of industry, Examine global
growth, licensing and franchising contributed economic worth, Range of different operational
roles, Skill essential for roles along with current skill shortages, Skill gaps with relation to
various operational roles, Examine skill gap in hospitality business with valid solutions.
MAIN BODY
Different types of business within hospitality industry
The industry of hospitality is moving growing towards continuous changes, as most the
jobs has been created (Casado-Díaz, 2020). The Fairmount hotel has deal in variety of global
services in hotel along with entrainment activities in order to enlarge its activities into
entertainment segment so that it can easily established economic brackets. The ultimate elements
of hospitality industry combines of travel lodging along with managing restaurant services.
Tourism hospitality facilitates in minds of consumer to travel people. Most of the people spend
in segment of food shelter etc. The ultimate reason of travelling is observing more pleasure. The
aspect of pleasure and leisure in Fairmount hotel , delivers spending money, vacation, relaxing as
well as recreational activities lacking of business intentions. The issue related with hospitality
industry, can be rectify with 4 segment. These can be combined well to accomplish aim along
with consumer satisfaction through superb services.

Lodging-It is mainly concern with place that contains sleeping nights to stay with one and
more, it also refers as accommodation. In context of Fairmount, services they are dealing such as
entrainment like resorts, motels, boatels, hotels, youth and budget hotels. The services kind of
lodging consist of-
 Free service
 Limited services
 Institutional housing
 Specially accommodation
Kinds of lodging are as follows-
Convention hotels Fairmount hotel consist variety of service to
target consumer and grouping within common
interest (Florencio, 2020). They consist hotel
combines of huge structure building that has
enough room accommodation and gathering.
Luxury hotel Location act as most attractive factor in kind
of lodging (Gallarza, 2018). It will facilitates
near most location that fit within the attraction
elements like beaches, seashore, parks,
heritage building etc.
Extended stay hotel The place in which guest can easily stay in 5
days also extend as per its preferences that is
highly provided by Fairmount hotel.
Limited-service hotel It act as medium kind of facility associated
with the restaurant, swimming pool, dining
room. It will leads to cover low package price
in the luxury type of hotel.
SPECIALITY ACCOMODATION
lodges Kind of accommodation deliver within room
housekeeping service to influence and improve
consumer experience of guest. Most of the

services are comes under 10 to 100 rooms.
Bed and breakfast Fairmount aims towards services within
homely atmosphere kinds of accommodation,
family love to stay place where rooms as well
as breakfast is available to guest.
Campgrounds Amenities such as water, bathroom, waste
facility that is surely present upon kind of
accommodation (Gallarza and et.al., 2021). It
is concerned with near by recreational services,
as price cannot be charge as per night.
Full service restaurant Fairmount aims towards arrangement of
seating space towards consumer and variety of
services consist of food, beverages in optimise
manner (Gao, 2018). The service in which it
deal is fine dining restaurant with large staff
member so that they can deliver more lavish
kind of facility with respect of high price along
with high profiled food professional chef.
Welfare This can be done in system of food, beverage
kind of service aims in Fairmount hotel with
full type of beverage intentions.
Range of operation and functional department
Kind of functional and operational department in industry of hospitality is mention below-
Human resources department-In hotel Fairmount, HR aim to execute variety of
activities through designing job, in order to generate more responsibility during individual
specification. It will promote advertisement by adopting suitable channel of hiring talented staff
by matching skills and capability.
Purchase department-This department also refers as procurement in Hotel Fairmount in
order to facilitates deliver best quality services while dealing with raw material as well as
necessary goods with competitive comparison price.

Accounting: Most of the business deliver optimum kind of services in accounting where
all type of service like credit, debit, revenue and expense while examining transaction. The team
of Account comes under director as well as board of executive. Team deals and manage
recommendation along with hotel offers.
Marketing and sales: -The hotel who fail to attract consumer is not successful. Here the
team of marketing and sales advertise high promotion in order to build brand image in
competitive market (Gonzalez, 2019). They promote with source of social media, newspaper,
advertisement etc.
Contribution towards local, national and international economies
Most of the family as well as friend are leads towards planning of going on vacation, then
first step is taken by them is to reserved hotel of local, national and international level. In
Fairmount hotel lots a variety of services are deliver with range of connectivity so that visitors
can easily enjoy premium services (Goryushkina and et.al., 2018). The Fair mount hotel boost
economies of scale towards local, national and international.
Generates employment: In hotel several kind of team is needed in order to manage
hospitality experience with amount of more than 100 employee. That is why lots of employment
generate that enhance economy of local, national and international.
Boosts local industries: The industry enhance the level of economy that directly boost
scale of economies. Various industries done their jobs as per its jobs specification that connect
with local vendors services . It will enhance overall industry of local in hotel.
Generating income: Industry of tourism and hospitality create more income opportunity
alonf with government also execute tax revenue in order to attract more visitor. Here consumer
plan to visit most famous places and looked for near by transportation service. This will
facilitates more source of income. Another mode of generating income from medicine, cloth,
food etc that support global industry of hospitality.
Foreign direct investment: - More form of contribution as given to country by hospitality
industry. Consumer visit with carry different form of own country specific money while
travelling. As a result while travelling local and diversified currency will transform. This will
cost some tax by government and ensure foreign direct investment.
Preserve traditional industries: - Several advantage is associated with hospitality
industry while dealing with traditional terms of items consist of wood, cotton, natural colours

etc. So that more interest will generate in visitor towards traditional trip items and memories.
That is why hotel try to maintain traditional and economies with prestige in traditional manner.
Interrelationship among operational and functional units
In Fairmount hotel all type of operational and functional are collectively interdependent.
As it terms as backbone with respect of functional department as it rely upon human resource. It
will ensure optimise role so that it can easily train its employee as well as front office staff with
respect of dealing in operational department such as housekeeping. It aid hotel to manage healthy
relation among visitor and hotel (Hernández-Perlines and et.al., 2019). The optimum function of
finance or accounting in hotel Fairmount as it designed all activities as per its reference of budget
that is required to manage front and back office employee. This is the main reason coordination
in several department aids in enhancing consumer base as well as demand of hotel. will leads to
manage with its proper managing and coordinated in smooth manner.
Use of franchising and licensing agreement affect global development of industry
The franchising is most useful model of any type of business through which company sell
its rights of business ownership (Nikolskaya and et.al., 2018). By applying this model Hotel can
grow in more quick way. Here the franchise act as owner of business then run or perform all
functioning of business.
Franchising in hospitality industry-While time of acquiring whole franchise in terms of
hospitality industry, This will termed as more loyal programme and fan base along with logo and
brand. As a result, Fairmount hotel combines of unique verbiage that involve large number of
staff around overall international country.
Franchised company profit to franchisor-The franchise make sure better form of
investment so that more capital will generate to profit of hotel industry. Here the franchisor must
not look to worry about managing or executing business performance. It has greater value to
examine higher value to standardise its performance level so that it will properly utilise
marketing brand name.
Examine global growth, licensing and franchising contributed economic worth
Hotel growth in terms of globally can only be perform by franchise, that is why in
hospitality industry it will support royalty as well as payment through proper expansion so that it
can decrease overall risk of finance. This will ensure overall presence of geographical so that

maximum benefit will generate towards franchise of Fairmount hotel as it deal with aim of
lowering risk and cost of operate while recognising brand through the efforts of marketing. Here
the potential level of franchise along with licensing programmes that is attached with location,
needs and interest towards induction of franchise in industry to bring more flexible form of
process (Nikolskaya and et.al., 2017). It will build royalty form of payment within industry
where high range of success will tried up with business model.
Range of different operational roles
In Fairmount hotel, whole range of consumer enjoy services with heaven and pleasure.
Potential consumer spend time with optimum range of quality memorable reference with family,
close one or relatives. In area of hospitality Fairmount hotel deliver variety range of services
with proper structured operational role in terms of good behaviour to potential consumer –
Executives: In segment of hospitality, operation of executive is significant to performed
business of hotel, as director head execute all important decision related with good quality of
resources (Serra-Cantallops and et.al., 2018). Whole business execution activity id depend upon
hotel executive to serve best service while fulfilling all responsibility.
Front desk services: In Fairmount hotel, front desk services are also important where all
type of solution of problem related with consumer gets easily resolves. This will termed as
representative of hotel that manage or tackle consumer problem that is associated with
hospitality.
Housekeeping: This job is done when visitor is arriving or leaving the hotel as they have
to maintain cleanliness so that no tidiness will remain in hotel. It also very essential task done by
housekeeping. In Fairmount hotel, this department execute its job in order to fulfil consumer
demand and leads to cover overall decoration of room while accomplishing demand of
consumer.
Maintenance: - Here hotel serve best optimum services towards electronic item placed in
bedroom, washroom, room etc. This will generate more interest of consumer towards break,
malfunctioning, so that it will manage or inform actual performance with service of
housekeeping during check out of consumer. Team maintains overall solution of problem, while
maintaining executive staff in front desk which is generally associated with the hospitality
Kitchen staff: - In hotel Fairmount they focus to deliver delicious services of food as they
provide proper training to their staff while preparation of food and storage in order to maintain

all standards of hygiene and sanitization so that overall equipment gets deliver on dining through
premium consumer services.
Skill essential for roles along with current skill shortages
The ultimate skill is needed in industry of hospitality in order to enhance the level of
productivity in Hotel Fairmount.
Customer services skills-The service of consumer are attached with positive in order to
deal with toughest situation to mange consumer base (Vives, 2018). Staff of hotel must be put on
smile, polite and calm as a result it deliver positive result into better experience of staff as they
can easily conduct feedback so that service can be improved.
Cultural awareness-Fairmount hotel employee must have some values about cultural
awareness so that beliefs as well as perception system, It is essential with proper consideration in
order to deliver more comfortable service.
Communication skills-The effective communication skills must be value in Fairmount.
The skill is essential while dealing with variety of people with commence of several background,
nationalities, ages, different temperaments.
Skill gaps with relation to various operational roles
Skill gap is linked with hospitality industry through the optimum relationship during operational
roles mention below-
Build up a clear image of talent gap-There is a requirement of clear extent that manage
gap is some sort of difficult. This is mainly concern with business challenge in the hospitality
industry. The gap accomplish demand along with supply in terms of promotion and retention
employment rate (Yao, 2019). Hotel must aim towards its choosing recruitment as well as
retention services with significance of business
Scarce talents-It also refers as certify staff and proper utilisation of its skill that is
essential in field of hospitality. As a result services like administration that is unfamiliar activity
will not executed as actual job position to get out of scarce talents.
Construct line manager accountable-HR manager filling all job responsibility with
reference to subject matter through structure leading growth programme. The line manager in
Fairmount hotel in order to accomplish gap filling of best talent is their major responsibility in
order fulfil all types of target gap.

Examine skill gap in hospitality business with valid solutions.
The skill gaps gets highly affected in hospitality and mention below are gap filing that deal with
optimum solution-
Key performance indicators-The best source are terms to be considered so that it can
accomplish respective skill that can fill gap. among workforce so that it will not struggle within
KPI in order to improve performance.
Employee assessment-This will terms as assessment in order to deliver excellent manner
to fill gap. The manger will easily access towards employee. The optimum point based upon real
work scenario in order manage the real actual gaps in hotel.
360-degree reviews-The best approach leads towards reorganisation in addressing skill gap
with proper conduct of feedback through employee performance.
CONCLUSION
From the above report it has been concluded that several types of business in hospitality
leads to cover unique diversity in services that is provided by chosen hotel. The range of
operational and functional department of hotel delivers more benefits towards local,
international, and national economies so that it will not gets affected with skill gaps with
reference to hospitality segment. It will aid in building more strong business in order to make
appropriate business decision so that no gaps will be considered. The current potential trends
towards industry are essential to be critically analysed.

REFERENCES
Books and Journals
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determinants in the hotel sector using a profit function. Current Issues in Tourism, 21(8), pp.863-
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efficiency. Current Issues in Tourism, pp.1-6.
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the Hotel Sector: The Mediator Role of Consumer's Complaints. Tourism Analysis, 25(1),
pp.183-187.
Gallarza, M.G., Del Chiappa, G. and Arteaga, F., 2018. A case study from the hotel sector. The
Routledge Handbook of Destination Marketing.
Gallarza, M.G and et.al., 2021. Active and Reactive Value Dimensions: A Dynamic-Based
Perspective in the Hotel Sector. Journal of Hospitality & Tourism Research,
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Gao, B., Li, X., Liu, S. and Fang, D., 2018. How power distance affects online hotel ratings: The
positive moderating roles of hotel chain and reviewers’ travel experience. Tourism
Management, 65, pp.176-186.
Gonzalez, R., Gasco, J. and Llopis, J., 2019. ICTs in hotel management: a research
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trends. International Journal of Mechanical Engineering and Technology, 9(13), pp.618-627.
Hernández-Perlines, Fand et.al., 2019. Innovative capacity, quality certification and performance
in the hotel sector. International Journal of Hospitality Management, 82, pp.220-230.
Nikolskaya, E.Y and et.al., 2018. Modeling the competitive advantage of companies within the
hotel industry in a region. International journal of engineering and technology (UAE), 7(3.15
Special Issue 15), pp.293-295.
Nikolskaya, E.Y and et.al., 2017. Boosting the competitiveness of hotel business operators in
current conditions. Journal of Environmental Management & Tourism, 8(8 (24)), pp.1617-1622.
Serra-Cantallops, A and et.al., 2018. Progress in research on CSR and the hotel industry (2006-
2015). Cornell Hospitality Quarterly, 59(1), pp.15-38.

Vives, A., Jacob, M. and Payeras, M., 2018. Revenue management and price optimization
techniques in the hotel sector: A critical literature review. Tourism economics, 24(6), pp.720-
752.
Yao, T., Qiu, Q. and Wei, Y., 2019. Retaining hotel employees as internal customers: Effect of
organizational commitment on attitudinal and behavioral loyalty of employees. International
Journal of Hospitality Management, 76, pp.1-8.