Contemporary Hospitality Industry: Types of Businesses, Operational Roles, and Contribution to Economies

This document provides an overview of the contemporary hospitality industry, including the different types of businesses within the industry, range of operational and functional departments, and the contribution of the industry to local, national, and international economies. It also discusses the skills required for different roles in the industry and conducts a PESTLE analysis of Marriott hotel.

CONTEMPORARY
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK1.............................................................................................................................................3
P1. Different types of businesses within the hospitality industry. .............................................3
P2. Range of operational and functional departments................................................................4
P3. Contribution of the hospitality industry to local, national and international economies......6
TASK2.............................................................................................................................................8
P4. Range of different operational roles within the hospitality industry....................................8
P5. Skills required for the different roles in a hospitality industry and shortage of current
skills............................................................................................................................................9
TASK3.............................................................................................................................................9
P6. PESTLE of Marriott hotel.....................................................................................................9
P7. SWOT analyse of Marriott..................................................................................................11
TASK4...........................................................................................................................................12
P8. Implication of current and potential trends in the hospitality industry...............................12
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................14

INTRODUCTION
Hospitality industry is concerned with various businesses which are developed for the
intention of satisfying customers needs and requirements. Company which is to be considered for
this report is Marriott hotel which has commenced its operations from 1927 and provides the
services of accommodation, dining, entertainment, etc. This report will explain the present
structure, scope and size of hospitality industry. It will concentrate on exploring present and
anticipated skill requirements in the hospitality industry. The report will review the internal and
external factors which has impacted upon the hospitality industry. This has also impacted the
current and potential trends which has a impact on the organisation.
TASK1
P1. Different types of businesses within the hospitality industry.
Hospitality industry is one of the most growing industry where the organisation is
involved in providing various products and services to the customers. The number of hospitality
is increased in last few years because people have become traveller and keeps on travelling for
different purposes. There are various types of businesses in which the hospitality industry deals
in. therefore, the following are the businesses in which Marriott will deal in:
 Lodging: This business of Marriott hotel is concerned with providing accommodation
facility to the customers. It means giving a place to sleep for a night or more in luxury
hotels, motels, hostels, etc.
 Restaurant: The organisation is involved in providing restaurant facility or business to
its customers where the customers can get the food of their choice. This comes under
food and beverage industry where the organisation is involved in rendering catering
services to the customers.
 Pubs, bars and night clubs: This is the another important business which is prevailing
greatly under the hospitality businesses. In this, the hospitality industry is involved in
rendering entertainment to the customers. Through this, the customers will be able to
dance and can also sit and enjoy the drinks with friends which will provide them relaxing
and refreshing time.
 Travel and tourism: It is very broad sector within the hospitality businesses where the
organisations are involved in serving transportation facilities to their customers like

trains, roads, airways, marine, etc. It helps in the movement of people from one
destination to another.
 Membership and events: Certain hospitality industry provides a membership of their
hotel for a year, 5 year or lifetime where customers can enjoy various services of the
company at free of cost or minimum cost. For instance, by owning a membership of a
hotel, customers can stay with hotel freely and the organisation can also involve various
like organising special events like new year event, Christmas events for the members.
P2. Range of operational and functional departments.
Operational and functional department is one of the most important department of the
hospitality industry. It helps in assessing various services to the customers which are directly or
indirectly is very important from the customer point of view. The Marriott will have 6 functional
and operational department in it. These department are also separated in terms of front of house
department and back of house departments.
In front house operation department, the Marriott will have to deal with higher level of
interaction and contact with the customers and guest. In includes room division where the focus
is given on housekeeping department, front office, reservations, etc. The another important
functional head is concerned with sales and marketing department which involves catering sales,
group sales, etc. The food and beverage department also comes under this which involves
restaurants, lounges, room services, conference rooms, banquets, etc.
In back house operation departments, the Marriott will have to deal with different
heads like human resource management, engineering and accounting. The human resource
management functional head will keep strong focus on hiring perspective and proper candidate
for the benefit of the organisation. This will be helpful in ensuring that the work which is to be
performed by the company will be done by the right people. The HR department will also work
effectively on ensuring the proper security and safety of their employees and customers at the
hotel. They will implement various laws that will assure the food which is to be served by the
hotel is free from contamination and is hygienic and healthy to eat. The engineering department
will be involved in maintaining the infrastructure of the hotel and ensuring that all the
equipments which are involved in the hotel works effectively and efficiently. It will also
concentrate on grounds keeping, and improvements of capitals. Lastly, the accounting

department will be involved in ensuring credit facilities and determining the proper profit and
revenue generated by the company.
P3. Contribution of the hospitality industry to local, national and international economies.
Due to increasing number of tourisms and travellers, the hospitality industry is growing at
a tremendous rate. This brings various benefits to the local, national and international economies
of the country. The tourism industry has a very strong contribution towards the growth of the
country and its economy. It generally relates to travelling to a place other their the home place or
home country for the purpose of leisure, exploration, vacation, businesses, etc. This generates
demands for various products and services.
The UK hospitality industry is very vast and it has generated the large number of job and
employment opportunities for the local people. It has employed around 2.4 million people as per
Illustration 1: Functions And Divisions.2019

the 2017 data and 1.2 million in around 170,000 commercial set up. Thus, it is fifth largest
industry in UK which is employing the maximum number of people. This industry has generated
the revenue of £90billion which has strong contribution in tax of the company in around
£34billion. Apart from this, VAT rate from the restaurants has also created the 53900 jobs in the
country (Economic Contribution of UK hospitality industry, 2019 ).
The hospitality industry has a strong contribution in UK economy as due to generation of
employment opportunities, the vast number of people are employed and contributes in per capita
income of the country. This will help them in building their standard of living. Due to the
hospitality industry, the business of various sectors like sight seeing, shopping, travels, etc. is
growing which is contributing immensely in the overall growth of the country.
Similarly, the international tourist also has a strong contribution in UK economy, because
they travel by air which increases the revenue for the airways and travel and tourism industry.
Then being from the international countries, they will also do shopping which will contribute in
the development and growth of the local economy. Furthermore, the franchising and licensing
has a immense contribution in developing global hospitality brands in UK. Thus, they will
generate higher level of tax for the country and improves the overall economic condition of the
UK.
Illustration 2: Economic Contribution of hospitality industry.2019

TASK2
P4. Range of different operational roles within the hospitality industry.
Being the vast industry and as it generates ample of job opportunities, there are various
range of operational roles within the hospitality industry. These roles are essentially important so
that the organisation can understand and develop various strategies in order to make their
customer satisfied. The following are the different operational roles in Marriott:
 Housekeeping: The main work of housekeeping department in Marriott to keep the
premises and surroundings neat and clean so that customers feel comfortable. It is that
operational department in the hotel which maintains the comfortable environment and
keeps the rooms neat and clean. This available 24*7 for their customers and has a strong
and major contribution towards the reputation of the company. It insure the linen in
different part of the hotel premises like rooms, banquets, health club, conference, etc.
This also ensures the neat and clean uniforms for all the staff members.
 Marketing and sales: Every organisation exist for the accomplishment of business
goals and objectives by satisfying customer needs and requirements. No organisation
can exist for longer period of time without proper marketing and sales. Thus, manager
of marketing department of Marriott will keep promoting its various products and
services so that customer will be aware of what is prevailing in the market. It serves
products for customers so this department has a strong focus on building relations with
the customers. Thus, this department will use various promotional tools in order to make
people convey about the new offerings and also offers discounts and moreover this will
generate sales for the company which will have a direct contribution in generation of
revenues.
 Front desk services: This department of Marriott is involved in communicating
regularly to the customers. In this, the manager or other representative person is also
accountable for making and holding the bookings. They work effectively to solve the
queries of the customers by properly and constantly interacting with them. It is also the
primary duty of this department to create a good and long lasting impression on the
mind of customers.

P5. Skills required for the different roles in a hospitality industry and shortage of current skills.
As, in a hospitality industry, the customers of various different culture and countries
come for different purposes, so this industry requires various skills for performing different roles
and in Marriott the various skills which will needed are discussed below:
 Flexibility skills: Due to the diverse range of customers, the organisation must have
flexibility. This is because so that the Marriott can customise its products and services
according to the needs and requirements of the customers. This skill is very important in
the company because customer can demand different products and organisation works to
satisfy that skill.
 Language skills: As the customer visits from different destinations and countries, the
staff and employees of the Marriott must be familiar with different languages in order to
effectively communicate, understand and fulfil the needs and requirements of the people.
In present business world it is one of the most important skills.
 Communication skills: This skill is another very crucial skills because without
communication no business organisation can attain business goals and objectives
effectively and efficiently. Therefore, the employees and staff must have strong
communication skills so that they can clear the queries of the people and they must be
patient, clam, good listener.
Furthermore, presently,the hospitality industry is suffering from shortages of various
skills like information and technology skills, innovative skills, etc. This is because technology
and innovation is increasing at rapid rate and hospitality industry also requires continuous
innovation in their product line in order to compete in the market and lack of technological skills
can create burden of work and also lowers the efficiency. With effective technology, like in
kitchen department, the Marriott will be able to serve better food and desert products to its
customers. And with innovation they can work regularly to serve new and exclusive dishes.
TASK3
P6. PESTLE of Marriott hotel.
PESTLE analyses are conducted by the organisations in order to evaluate the macro
environmental factors and its impact on the organisation. It is the combination of political,
economic, social, technological, legal and environmental factors which are generally

uncontrollable in nature. The Marriott will apply PESTLE in order to determine the factors of
outside environment which can have either positive or negative impact on the changes of the
company's functions. The following is the PESTLE analyses of Marriott hotel:
 Political factor: These factors are concerned with the political stability and government
intervention. The factors which will included under this are taxation, subsidies, trade
policy, commerce, etc. These factors are out of the control of the organisations. It will
have a profound and significant impact on the Marriott. For instance, Marriott can be
adversely affected by the danger of terrorism, international relations and atmosphere of
political environment in specific tourist destinations. It is the threat for the organisation
and restricts people to travel. Thus, it will also affect the brand image and reputation of
the Marriott.
 Economic factors: These factors are concerned with the economic stability of the
organisation. It depicts the financial strength and level of profitability for the company. It
affects the organisation by considering various factors like inflation, deflation, recession,
currency, etc. For instance, Marriott will have a crucial impact of this factor during the
period of inflation. This is because at that time the prices of products and services
increases and customer tends to spend their disposable income on useful products and
services only. This will affect their purchasing power and also create a debt for the
company.
 Social factors: These factors are concerned with the social trends like demographics,
age, class, status, buying behaviour, attitude, lifestyle, income, etc. of the individuals.
Customer needs and preferences are highly dynamic in nature and it changes very
rapidly. In this, Marriott will be affected by the buying behaviour of the people. Now a
days people prefer to own a package rather than a day basis so for this the organisation
will require to develop a packages of different types, like couple package, family
package, etc.
 Technological factors: Technology is the most prevailing and growing factor in the
present business scenario. Every company needs to adopt certain technological aspects
which improves their efficiency and productivity. It includes factors like innovation,
invention, research and development, etc. Therefore, Marriott will have crucial impact of
this factors and for this, the company will launch their products and services to the

customer on mobile where they can easily book and cancel the hotel bookings. This will
also help the traveller to see the hotel on the internet. There various technological
equipments in the organisation which helps in checking that the person is not carrying
any harmful weapon.
 Legal factors: These factors are concerned with the laws and legislations. It is important
factors because it assures that customers and employees are secured and protected. It
includes different factors like environmental laws, labour laws, employment laws, etc. In
this, if Marriott does not treat the customers fairly or misinterprets them regarding the
products and services then the customers can take a serious action against the company
and also file a case which can affect the goodwill of the organisation.
 Environmental factors: These factors are concerned with protecting the environment
and nature because they are the greatest tourist attractions. In this, the factors which will
affect the organisation includes climatic conditions, farming, agriculture, etc. Therefore,
it is very important for the Marriott to protect the environment and use its scarce
resources effectively and efficiently. For instance, reduction in the fuel prices can reduce
the cost of travelling for the customers and this will have a positive impact on Marriott as
the demand for customers will increase.
P7. SWOT analyse of Marriott.
SWOT analyses is conducted by the organisations in order to identify the internal
strength and weakness and external opportunities and threat. It helps the company in evaluating
the level of competitiveness and develops the strategic plans. This is generally designed to
facilitate a realistic and data driven approach. The following is the SWOT of Marriott:
Strength
 Global presence: The Marriott hotel is present globally with more than 600 properties
and covers each and every geographical area by operating in 122 countries through out
the world.
 Focus on Innovation: The Marriott is highly focussed towards the innovation. It kept on
producing new and innovative services for their customers all over the world.
 Drive for competitive advantage: Marriott is one of the most competitive brand in the
hospitality industry and it regularly focuses on reinventing its brand in order to attain the
competition.

Weakness
 Excessive focus on expansion: The Marriott has expanded its operation in wider area of
the world where it becomes extremely difficult for the company to maintain the quality
standard and for this reason the brand is diluting.
 Marriott controversies: The Marriott has suffered a lot of problem due to its lack of
privacy and secrecy concerns. It has been into the different controversies for threat of
terror attacks and lack of security of customers and employees.
 Focus on family: The Marriott has a strong focus on families and is extremely unwilling
to change this pattern.
Opportunities
 The shift of customer behaviour: The changing trends of customer is prevailing in
present business world where they wish to stay in the luxury hotels whenever travelling
with friends and families. Thus, it increases an opportunity for the developing economies.
 Huge unexploited market: Marriott has gain a lot of attention on LGBTQ section of
society and has supported them whole heatedly. This gave them an opportunity to provide
special offers to the couples of this community which will contribute in sale and revenue.
 Emphasis on personalisation: The customers are highly personalised in nature and the
Marriott has an opportunity to charge premium prices for every personalised services
which the customers wants.
Threat
 Strong competitors: Higher level of competition from brands like Hyatt, Hilton, Holiday
Inn, etc.
 Economic recession: This will affect the hospitality industry in a very poor manner
where many properties will be auctioned and sold in the market that are not able to
generate the profits and revenues.
TASK4
P8. Implication of current and potential trends in the hospitality industry.
The present trends in the hospitality industry is concerned with devising the aspects
which are presently used by the organisations.

 The most important trends which is increasing is globalisation where the Marriott is
involved in sharing labour, resources, technology, etc. between the different countries
and thus making the business more viable and suitable.
 Furthermore, the concern relating to the safety and security is also increasing and
Marriott is taking several steps in order to insure their customers and employees that they
are safe and secured from various natural and man made disasters.
 In present hospitality industry, the diversity is also playing a vital role where the Marriott
is provided with a unique opportunity so that they will understand the different and new
cultural experiences for tourist and employees. It is important to understand the culture in
order to enhance the nature of different interactions with tourist of different culture, caste,
religion, gender, etc.
CONCLUSION
From the above report it has been concluded that hospitality industry plays a vital role in
the development of the country and contributes immensely towards the growth and development
of the country. There are various range of departments and needs different kind of skills to
accomplish the goals and objectives effectively and efficiently. With the help of PESTEL
analyses it has been analysed that different macro environmental factors affect the company in
both favourable and unfavourable manner. While SWOT has explained the competitive position
for the organisation and current and potential trends has explained that they are important in
present business scenario in order to provide effective services to the customers.

REFERENCE
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
Eid, R. and El-Gohary, H., 2015. Muslim tourist perceived value in the hospitality and tourism
industry. Journal of Travel Research.54(6). pp.774-787.
Eid, R., 2015. Integrating Muslim customer perceived value, satisfaction, loyalty and retention in
the tourism industry: An empirical study. International Journal of Tourism
Research.17(3). pp.249-260.
García-Villaverde, P. M., and. et. al., 2017. Determinants of radical innovation in clustered firms
of the hospitality and tourism industry. International Journal of Hospitality
Management.61. pp.45-58.
Kotler, P., and. et. al., 2017. Marketing for hospitality and tourism.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing.32(5). pp.608-621.
Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of
some structural characteristics. International Journal of Hospitality Management.47.
pp.116-119.
Online
Economic Contribution of UK hospitality industry. 2019. [Online]. Available Through:
<https://www.oxfordeconomics.com/my-oxford/projects/296333>.