The Contemporary Hospitality Industry: Types of Business, Organizational Structure, and Economic Impact

This report explores the hospitality industry, focusing on the types of businesses within it, the organizational structure of hotels, and the economic impact of the industry on local, national, and international levels. It also examines specific operational jobs and the skills required for them. The report uses Hilton hotel as an example throughout.

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Explain the different types of business within hospitality industry and the diverse product and
services they offered...............................................................................................................3
Explain the scope (type of sectors of the industry like hotel, resturant, bar, camping, event
catering etc.) and the diversity within each sector. This means the different types of
accomodation services, different types of pubs, bars etc. .....................................................4
Examine the range of operational and functional departments within a choosen hospitality
business...................................................................................................................................5
Explain the types of organizational structure the hotel has....................................................6
Discuss the contribution of the hospitality industry to local, national and international
econoimies..............................................................................................................................7
Explain the economic impact the industry has on a local level in UK, national level and
international level in Europe, Asia and others........................................................................7
Explain atleast four different specific operational jobs that are on a different levels............8
Examine the skills required for above mentioned job roles within hospitality industry and
current skills shortages...........................................................................................................9
Explain the political, economic, social, technological, legislative and environmental factors
that affect the development of organization operating within the hospitality industry........10
Undertake SWOT analysis for a hospitality business and review how how this can inform the
process of decision making..................................................................................................11
List and explain some current and potential trends from the industry and explain how they
are / will affect the industry..................................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
The hospitality industry is basically a one kind of sector and in this sector company run
their various activities for enhancing the sale of their goods and services. The main aim of
hospitality industry is to develop strong positive relationship with society with help of serving
high quality goods and services to them. In hospitality industry company facilitates their
products and services to users at wide range. For this report the selected company is Hilton hotel
and headquarter of this firm is situated in United Kingdom. The company was established in
1919 and this organization is dealing with wide range of food and drinking products
(Angkasaputra, Aditya and Azizah, 2022). The report will covers explain different types of
business within the hospitality industry and the diverse products and services they offered. It
further covers explaining the scope and diversity within each sector. This means the different
types of accommodation services, different types of restaurants, pubs, bars etc. In this industry
the revenue of the hotel is directly connected with the income of their potential clients. Without
their potential client’s firm is not able to sustain their reputation in this industry for long
duration.
MAIN BODY
Explain the different types of business within hospitality industry and the diverse product and
services they offered
The hospitality industry is basically a wide concept in the service industry as it operates
in different kinds of business which is essential for service huge customer base in UK market. In
context to Hilton hotel they basically distribute their industry into four segments -
 Lodging – It refers to provide accommodation for the particular period or the place
sleeping for more than one night. In involved fancy hotels, elder hostels, youth hostels
and other kinds of businesses are facilitating a place for individual to sleep for more than
one night. In respect of Hilton hotel, they facilitating lodging service to their clients to
made the stay comfortable of the customer in their premises.
 Food and beverages – In aspect of food and beverage this is the largest business which
are operated by Hilton hotel in hospitality sector. As it comprised of establishment like
lounge, bar, restaurant etc. They get engaged for preparing beverages, snacks and meals
regarding immediate consumption to the clients. When hotel becomes the part of hotel

premises they easily facilitates high quality service to their clients. It leads to enhance the
profit of firm at higher rate.
 Travel and tourism – This is dealing with those services which is connected with the
travelling of individual from one destination to another. Travelling facilities includes
plans, buses, trains and cabs which comes under the category of travelling industry. For
example, the person whose name is leisure travel who spends their money on food,
lodging and various recreation functions during the time of their vacation trip.
 Recreation - This is basically one kind of function which is connected with enjoyment,
relaxation and rest and it is highly important for refreshing the body and mind of
individual. Any type of services which facilitating such services are comes in the
category of business of recreation.
Start by explaining what the industry is about, explaining what is sold
In aspect of Hilton hotel, it is one kind of hotel industry and this firm is directly
connected with the consumers’ needs and wants (Anthonius, 2021). This firm is dealing with
wide range of food items, beverages, bars, snacks, providing rooms and others. In comparison
with other hotels the revenue of this company are highly generated in UK.
Explain the scope (type of sectors of the industry like hotel, restaurant, bar, camping, event
catering etc.) and the diversity within each sector. This means the different types of
accommodation services, different types of pubs, bars etc.
The hospitality or hotel industry have wide scope in service industry which is focused on
accommodation, event catering and others in tourism and hospitality industry. In respect of
Hilton hotel scope are divided into various kinds of sectors which are described below -
 Event catering – It is one of the important sector of this industry and this is a very
essential service for the customers. For this kind of role higher authority is responsible
for manage this activity in smooth manner. In event catering all types of food and
programs are planned by chief and managers as per the needs and desires of customers.
The major highlight of this department is that this department have direct connection with
consumers. Due to providing best quality food and other services to client’s management
of Hilton hotel is able to maintain positive relations with them.
 Bars – It is also one kind of unit or sector in this industry and this kind of product is
highly consumed by tourist at the time of visiting in Hilton and hotels. In bars or pubs

various types of natural and soft drinks are also available which is not dangerous for
human beings. In today's soft drink and natural drinks are those products which is highly
liked by young generations and children’s. With help of facilitating these kind of
products revenue of this industry are highly increased within short duration. This kind of
product is delivered in multiple locations also by this management.
 Restaurants or room service – In this function scope are very broad for hotel in various
aspects. It includes enhancing goodwill, develop strong positive relations with users and
highlighting the speciality of their services and rooms. Presently Hilton hotel have around
58, 000 rooms are there in hotel and their rooms are very luxurious. Due to providing
high facility rooms the visits of customers are easily increased in hotel for long time.
From the above analysis it understood that in these sectors the selected firm is able to diversify
their product and services a wide range (Anthonius, 2021). The other benefit of above mentioned
sectors is that in these sectors chances are very high for enhancing the rate of employment. Due
to enhancing employment rate and keeping transparency in these sectors the popularity of Hilton
hotel is easily sustained in market for long time.
Examine the range of operational and functional departments within a chosen hospitality
business
There are different departments which are worked together in the premises of hotel for
ensuring that top level of services is rendered to their clients with purpose of producing more
market share and profit. In respect of Hilton hotel, the departments who are worked together in
hotel workplace area are described below -
 Front office and housekeeping – It is defined as the facing of hotel and point of contact
of guest in hotel and they also responsible for greeting and welcoming of clients in
professional way. They also facilitate respective rooms according to their bookings. In
aspect of housekeeping it is one type of unit. The main duty of this unit is to make sure
that restrooms, lobbies, public areas, guest rooms should be ready to use and clean for
customers. They also kept the dept. cleaning once the customer checks out and also
make sure that the high standard of cleanliness is carried within premises.
 Food production and F&B services – Here department are engaged for preparing
different kinds of dishes. In this department chief, sous chef, kitchen porter and cook are
are played some of essential job role. They also make sure that food is prepared by

considering all safety precautions and must be hygienic for customers. But in other side
beverages and food services department is highly responsible for meet the needs and
desires of their clients to their table in hospitable way. Therefore, both the department
will maintain effective communication between each other as kitchen prepared the dishes
and F&B served similar to clients in appropriate way with keeping high standards.
 Human resource and marketing – The department of HR is responsible screening,
recruiting and selecting best candidates who have the set of integrated skills for
performing well in their provided job responsibility. They also concerned for
performance appraisal, training and development, rewards and salary to the workers. But
in other side unit of marketing is considered for advertising and promoting the various
services and goods of Hilton hotel. Due to this the overall profit and sale of organization
are highly increased in low time (Gebbels, 2019). Due to maintaining effective
coordination between these two departments HR manager easily makes sure that the
hiring of individuals who is having skills which can full fill the requirements to be a
good marketer.
Explain the types of organizational structure the hotel has
The organizational structure is basically defined as the outline of various activities which
is carried or managed by top level management within organization. In organizational structure
roles and responsibilities are distributed as per the specialization and skills of employees. In
context to Hilton hotel, presently management is utilizing divisional structure for running their
activities smoothly.
This is the very common and effective structure which is utilized by various
organizations. The main highlight of this type of structure is that here departments are effectively
distributed which leads to enhance the performance of employees. Due to effective distribution
task according to department wise workers are able to accomplish their work in time without
facing any kind of stress. The benefit of this structure is that here performance of each
depaartment employee reviewed and monitored by employees on regular basis. In this way
abilities and skills of workers are highly improved.

Discuss the contribution of the hospitality industry to local, national and international economies
In today’s time hospitality and tourism is becoming one of the world's biggest industries
which is growing in quick manner. Due to this economic sector is highly influenced in United
Kingdom. The industry of tourism and hospitality are now becoming significant source in aspect
of exchanging foreign revenue for various countries like UK and others. This permits the various
developing countries for their overall growth. It also involves the development of employment
nations in both aspects whether it is indirectly or directly. They mainly depend on gaining
minimal development goals which also leads to develop high employment and income rate. Then
it also reduced the living standard proportions in less than dollar per day.
The employment of tourist in North East Asian nations which is estimated in around in
around 35 million jobs from the big pool of employment. Here there are no kind of alternative
have in market as this will have the creation of job (George, Omuudu and Francis, 2020). They
are further responsible for having high profit and also permits the government for allocating
financial resources which leads to improve the education and health conditions. Due to the huge
explanation of hotel industry base of customers are easily increased with in low time and the
each of company goods and services are also enhanced to various locations.
Those hospitality sector who are oriented in international way will enhanced the level of
their competitive advantage which also permits the huge number of indicators. It also leads to
enhance the growth of economy which is evaluated by IMF with maintaining distribution of
income equally in hospitality industry. The sector of hospitality is mainly responsible for
creating suitable employment structure and also broadening various job opportunities to operates,
planning and guides.
Explain the economic impact the industry has on a local level in UK, national level and
international level in Europe, Asia and others
It has been analysed that in both national and international level Europe, Asia and other
locations tourism and hospitality industry have produced various economic impact. It includes
increasing employment rate, contributing revenue and others.
In aspect of employment rate the peoples who are searching for jobs they get the job in
this industry. Because in this industry management is not focusing on any kind of high
qualification for hiring new employees. In this industry employees are hired in huge quantity for
running their functions in smooth manner. In North East Asian Nation, the employment rate in

this industry is around 35 million but in the nation of Europe the employment rate is around 81.8
percent in 2022. Due to the enhancement of employment rate management of Hilton hotel is able
to sustain their vision, mission and objectives for long time nationally and internationally.
In aspect of contributing revenue, management of Hilton hotel made lot of investment in
their services which is provided to potential clients. Due to huge contribution of revenue
awareness of product and services are easily sustained in customer mind for long time. It also
assists various hotels to enhance their positive word of mouth at higher rate.
Explain at least four different specific operational jobs that are on a different level
In aspect of hospitality industry, it is a wide category in service which is concentrating on
planning, keeping executive chief, and accommodation in this industry. In context to Hilton hotel
there are different kinds of operational roles in hotel which are described below -
 Top level management – The top level management is basically a one kind of
department and the power of this management is very high in comparison with others. All
kinds of final decisions are mainly taken from this department. For executing any type of
plan and strategies permition of this management is highly important. In context to Hilton
hotel, this department have full power for taking any type of decision and also for
managing the employees within firm effectively.
 Senior management – The senior management is the second category and in this
department have direct connection with top level management (Han, 2021). But in this
management power is little bit less in comparison with top level management. For
example, in hotel executive chief which comes in the category of senior level
management they have only the power of design the plan and control the employees. But
for executing the final decision or plan they required to take the permission of higher
authority and in this ways they are directly connected with higher authority.
 Supervision room – The main role of supervision management is to monitor or supervise
the activity of each employee and regular checking of various rooms in hotel. Due to
effective supervision manager of this organization is able to facilitate best facilities to
their clients and tourist who are visited and staying in this hotel. The other benefit of
supervision is that the real issues which are faced by employees in their job are quickly
identified and according to that management developed strong solution for them. In this
way the overall performance of employees is easily sustained at large scale.

 Operators – Here operators refer to lower level employees of each department. In aspect
of employees they only follow the guidelines or instructions of top and senior level
management. That means they did not have any kind of special powers for taking their
own decisions. Due to facing this kind of issue workers faced lot of stress in their job
role.
Examine the skills required for above mentioned job roles within hospitality industry and current
skills shortages
The industry of hospitality is basically a constant form of employment which permits the
young talents to display their own ideas and broadening various opportunities in job for them. In
respect to Hilton hotel, there is a combination of various opportunities and skills which are
highly important for them to run their functions smoothly.
Skill required for top level management -
 Keep effective communication – It is one of the important point for any employer or
employee those who are working in Hilton hotel. Because with help of this skill top and
senior level management is able to maintain strong positive network with their client and
employee for long duration (Hemmington and Neill, 2022). With help of effective
communication management easily fulfilled the both mental and physical demands of
clients quickly whether it is written and oral. In context to Hilton hotel, due to the
effective use of this skill employees are able to understand the real wants and desires of
customers quickly. It leads to enhance the reputation of hotel in market for long time.
Skill required for senior level management -
 High level of cultural awareness – For enhancing the progression and achievement of
hotel industry, senior management is required to understand the needs of their clients
effectively. This involved proper understanding of culture and religion of different
nations. It also leads to have the nature of open minded through which every individual
have the feeling of flexibility and comfortable. In respect of Hilton hotel, they are hiring
the local and talented candidates who have high knowledge regarding cultures locally for
serving the clients in friendly manner. In this way the positive connections with
customers are easily sustained in market.
Skill required for both senior level and supervision mangement -

 Formal training features – It involves various relies on certain government regulations
and rules which is important to get effective training for meet the qualification of
workers. It also emphasis to follow rules strictly that involves skills and standards. In
respect Hilton hotel, management is providing formal training session to them to their
workers. With help of adapting formal training sessions employees always effective
follow the set of standards in services and job role which is implemented by organization.
Skill required for operator -
 Teamwork – The workers who are doing their job in operational department within firm
they required strong team work with their staff members and colleagues. Due to this
company easily gets positive and better output in their activities (Kim and Baker, 2022).
The members of effective team are formed as the people where having same combination
of skills so that they easily get better approach in different areas of function. In this way
the revenue and output of organization are easily increased at higher rate. In respect to
Hilton hotel, the team members of this firm are very strong which leads to sustain the
vision, mission and objectives of this company in long term.
Explain the political, economic, social, technological, legislative and environmental factors that
affect the development of organization operating within the hospitality industry
PESTEL Analysis -
This analysis is refers to the framework of evaluating and studying external macro forces
effectively. Due to effective use of this framework firm is able to sustain their competitive
advantage in market for long time. In context to Hilton hotel the factors which are considered by
management in this tool are explained below -
 Political – The elements which are comes under this factor are government rules and
regulations, political stability, government control and trade tariff. In respect of Hilton
hotel, it seens that there is political stability in UK which assist the management to serve
products and services to their clients effectively. It leads to operates activities of business
for longer time in market. Due to this strong communication are easily maintained
between employee and clients.
 Economic – The various elements which are comes in this factor are interest rate,
unemployment rate, inflation, disposal income and others. These elements have direct
impact on organization performance in market. In context to Hilton hotel, it seens that

negative effects are produced due to COVID 19 on this hotel in form of financial
situation and also in the economic condition of UK. Due to facing these issues company
faced huge financial loss in the development of business.
 Social – The elements which are includes in this factor are buying habits of users,
lifestyle choices, buying periods and demographics. In respect of Hilton hotel, perception
and culture of population involved the overall working of nation. Due to facing this
impact the management of this hotel is not able to understand and evaluate the needs of
users properly.
 Technological – The elements which are involved in this factor are innovation in
technology, advanced technology, licensing and others. These elements produce direct
impact on the choices of customers and also on market. In relation to Hilton hotel, they
utilized the system of self-check in and check out which support the customers for make
their work easy. In this way firm easily sustained their competitive advantage in market
for long time and also increased their profit margin (Liu-Lastres and Wen, 2020).
 Environmental – The various aspects which are involved in this factor are the physical
environment and its protection in the market. It also involves geographical location,
climate, tourism, agriculture, stakeholder and customer value. In respect to Hilton hotel
management is planning for decrease the waste in their workplace which leads to enhance
the work efficiency of employees at higher rate. With help of reducing waste firm is able
to deliver high quality services and goods to users for long time.
 Legal – It refer to those factors which impact both external and internal environment of a
company. Those factors are consumer protection, employment law and environment
regulation. In respect to Hilton hotel, management requires to adapt the legislation and
laws of UK effectively. In this way organization easily run their activities in smooth
manner and also ensures that employees are do their work with full safety in their
premises.
Undertake SWOT analysis for a hospitality business and review how how this can inform the
process of decision making
SWOT Analysis -

This analysis is basically a tool which assist the organization for identifying their own
strength, weakness, opportunities and threat in their business. In context to Hilton hotel, for
sustaining their reputation or goodwill in market for long duration.
Strength Weakness
 The management of Hilton hotel have
highly skilled and talented workers. By
using skilled and talented employees
firm is able to sustain their vision,
mission and objectives in long term.
 Management of this firm is using
various marketing tactics for attract the
customers in large number towards
their goods and services.
 With help of applying various strategies
firm is able to enhance their profit at
maximum level (Moosa and He, 2021).
 Due to the use of outdated technology
company is not able to produce best
quality product as per the needs and
desires of customers.
 Lack of financial planning is the
another weakness which is faced by this
hotel. In leads to create huge loss in
business.
 When communication are not
maintained between employees
properly then activities of firm is not
run in smooth manner.
Opportunities Threat
 There is reduction in the cost of
production which is useful for them for
achieving higher sale and profit of this
hotel.
 By using advanced equipments or
technology firm is able to increase the
demand of their goods and services in
market.
 By using technology hotel is able to
fulfill the needs and desires of
customers in time.
 Due to enhancing cost of raw materials
threat are highly increased for
organization reputation. It also leads to
have overall loss to hotel.
 Huge impact of COVID situation is the
another threat for this hotel. Because at
thaat time customers are not ready to
buy the products of this hotel.

List and explain some current and potential trends from the industry and explain how they are /
will affect the industry
It is essential for organization to keep large number of trends which are shown in the
hospitality industry sector. As they reflect the all over activity of business and have various
aspects which is considered in the business for maintaining the customer satisfaction level at
higher rate in market. In respect of Hilton hotel, the current and future trends which is analysed
by this firm are described below -
Types of hotels -
 Smart hotels – It refers to offering best services to clients in smart manner which leads
to generate the revenue and goodwill of firm at higher rate in market.
 Sustainable hotels – This kind of hotels is mainly focus on taking care of environment
and facilitates good services to clients which leads to enhance their revenue at maximum
level.
Technology -
 Artificial intelligence – It is a very advanced technology which is needs to utilize by
organization (Nazir, 2022). Because by using this tool task are become easy for
employees and quality in the services of hotel are also maintained in market for long
time.
 Robot staff – This facility assists the company to decrease the utilization of manpower in
their operational activities which reduced the expenditure incurred during the time of
hiring of employees.
Food -
 Unique brand experience – This provides best quality service in market by which they
are able to attract the new customer's in large number.

CONCLUSION
After the analysis of above data, it concludes that in today’s time hospitality industry is
the biggest revenue generating sector in service industry. Recreation, food and beverages,
lodging and travel and tourism are the business which operates their activities in this sector for
achieving high reputation and goodwill in market. The activities such as human resource, food
production, front office and others are some operational and functional departmental of this
hotel. This report covers the explanation of organizational structure which is which is currently
used by used by Hilton hotel for running their activities smoothly. This report also covers
Examine the range of operational and functional departments within a chosen hospitality
business. It further covers discuss the contribution of the hospitality industry to local, national
and international economies

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