Contemporary Hospitality Industry: Types of Business, Products, and Services

This document provides an overview of the contemporary hospitality industry, including the types of businesses, products, and services offered. It explores the operational and functional departments within Britannia Hotels and discusses the contribution of the hospitality industry to the local, national, and international economy. Additionally, it assesses how franchising and licensing agreements have influenced the global development of the hospitality industry.

Contemporary
Hospitality Industry

Table of Contents
Introduction......................................................................................................................................1
Part A...............................................................................................................................................1
Task 1...............................................................................................................................................1
Explore distinct types of business within hospitality industry along with range of products
and services offered by them..................................................................................................1
Range of operational and functional departments within Britannia Hotels...........................2
Discuss the contribution of the hospitality industry to local, national and international level3
Review the inter-relationship of operational and functional department of Britannia Hotels5
Assess how franchising and licensing agreements has influenced the global development of
the hospitality industry...........................................................................................................6
Task 2...............................................................................................................................................7
Analysis of how global growth, franchising and licensing have contributed towards the
economic worth of hospitality industry..................................................................................7
Range of different operational roles within the hospitality industry......................................7
Examine the skills required for the roles and shortage of skills within the hospitality industry
................................................................................................................................................8
Review the skill gaps within the hospitality industry with regards to different operational roles
................................................................................................................................................9
Analyse the impact of skills gap on hospitality businesses and suggest void solutions for
addressing these skills gap......................................................................................................9
Part B.............................................................................................................................................10
Task 3.............................................................................................................................................10
Covered in PPT.....................................................................................................................10
Task 4.............................................................................................................................................10
Covered in PPT.....................................................................................................................10

Conclusion.....................................................................................................................................10
References:.....................................................................................................................................11
Books and Journals...............................................................................................................11

Introduction
Hospitality industry is one of the largest and significant industries across globe as the sector
makes large contribution towards the development of an economy and creation of wealth for a
nation. The industry is considered as the part of service industry which is engaged in making
people feel welcome, comfortable and entertained through several activities. Hospitality industry
is majorly composed of five businesses such as lodging (hotels, resorts, motels, hostels; and Bed
and Breakfast); tourism and transportation, MICE, and food and beverages (Sutrisno and Jazilah,
2019). The prime objective of hospitality industry is to make feel the guest comfortable, safe,
satisfied and hospitable through goods and services which provide recreation and supporting the
well being of people. Britannia Hotels is a private hotel group founded in the year 1976 with the
initial purchase of Britannia Country House Hotels in Manchester and now have become one of
the largest hotel chains in United Kingdom with more than 60 hotels across UK, headquartered at
Hale, Great Manchester, United Kingdom. The report covers present structure, size, and scope of
the hospitality industry along with anticipated and current skills required n hospitality industry.
Part A
Task 1
Explore distinct types of business within hospitality industry along with range of products and
services offered by them
Hospitality industry heavily depends on the availability of disposable income, leisure time
and satisfaction of customer through myriad of services which make it up a multi-billion dollar
industry and largest contributor towards economic development and generation of employment.
The industry is majorly distributed into four businesses such as: Food and Beverages: F&B is regarded as one of the largest and broad sector of business
within hospitality industry which is consist of several activities ranging from preparation
of food till presenting it on the table for consumption. Food and beverages can be ranged
from a simple bistro to a high-end restaurant or a catering enterprise (Šerić and Gil-Saura,
2019). Services offered by F&B in Britannia Hotels are plate service, buffet service,
platter service, family style service, self services, cart service and room services. Food
and beverage department is further divided into restaurants, casinos, bars and pubs, fast
food chains, retails and food store, takeaways and outdoor catering.
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 Lodging and accommodation: This sector offers services of accommodation for the
people travelling for overnight or two-three days depending upon the length and nature of
stay. This is one of the broad sectors which include bed and breakfast to big and
luxurious hotels. Budget hotel, spa hotel, restaurant, boutique hotels, hostels, motels,
home stays, community stays, resorts are the key player in the sector. Products offered by
Britannia Hotels are rooms, banquets, lawns for weddings etc and services are lodging,
suites and resorts (Fernandes Sampaio, Hernández Mogollón and de Ascensão Gouveia
Rodrigues, 2020). Tour and travel: This sector of hospitality industry is concerned with the movement of
people from one place to another for some intended purpose such as leisure, business, and
education, medical or spiritual purpose. Cabs, cruises, ships, airplanes, buses and trains
together constitute a tour and travel sectors. Services offered by this sectors are guided
tours, reservations of hotels, transport, events, museum, historical places etc; foreign
exchange, restaurant services etc. Recreational: Hospitality is incomplete without entertainment as it is a core of the
hospitality industry and major part of people’s travelling as this sector aims at providing
relaxation and peace of mind. Many destinations are offering museums, zoo, Themes
Park, theatre, marinas, pubs and bars, sports and gaming to provide enthralling services.
Disney land, Walt Disney world resort, Madame Tussauds are the few examples (Goh
and King, 2020). Services offered by this sector included fairs and festivals, concerts, live
music and dance shows, MICE etc.
Range of operational and functional departments within Britannia Hotels
Operational departments of Britannia Hotels Housekeeping department: One of the essential tasks of Housekeeping department is to
maintain clean, hygiene, healthy and safe environment at Britannia Hotels. Personnel of
these department ensures that rooms are prepared and ready for the clients once guest
leaves the room and makes sure that common area, lobbies, restaurants, restrooms and
gardens of hotel are clean and sanitised to deliver pristine and high quality of services. Front office department: This department is the central of Britannia Hotels which comes
directly in contact with the guest and are responsible for making customer’s experience
good or bad. Front office department of the hotel ensures that guests receives warm,
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friendly and professional services and looks after the allocation of rooms (Line and et. al.,
2020). Apart from this, the department addresses the guest’s complaints and queries; and
resolves those in coordination with other functional department which contribute in
hassle free services.
Furthermore there are also other operational department such as food and beverage service, food
production, maintenance and security.
Functional department of Britannia Hotels HR department: Human resource department at Britannia Hotels are responsible for
maintaining adequate number of staff to execute hotel operations. Apart from hiring and
selection, the department also design jobs, training, coaching, advertising jobs, attracting
candidates, developing job responsibilities and personal specification etc. HR department
ensures that employees get fair remuneration and safe working conditions to enhance
motivation and satisfaction level of employee. Accounts and finance departments: Accounts and finance department of any business
keeps the business healthier and existed into the market through proper planning and
keeping records of financial transactions (Cheng and et. al., 2019). Britannia Hotels
maintains adequate working capital to conduct business operations and makes financial
projections for the projects and expansion of business. Preparing financial statements,
paying suppliers, employees, making investment, tax compliance, budget and budgetary
control, cost controlling are the some important roles performed by this department.
There are also other functional department such as marketing and sales; purchase, research and
development.
Discuss the contribution of the hospitality industry to local, national and international level
No wonder that hospitality industry contribute largely towards the economic development and
generation of wealth for the nation which increases the standard of living of people and
development of infrastructures (Huang, Chen and Wong, 2020).
Contribution to local economy
 Employment opportunities: One of the biggest contributions towards the development of
local economy is done through creation of direct job opportunities at regional and
national level. Britannia is providing sources of income to the local people through their
business operation such as tour planner, tour guides, travel operator, travel consultants,
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chefs, supervisors and executive at reception, operations etc. Hospitality sectors provide
jobs to almost 3 million people every year which enhance the standard of living and
development of a nation.
 Development of infrastructure: It works both the ways as tourists are attracted by the
good infrastructural development and facilities likewise further development at a local
level takes place through the income generated from tourists and travellers (Grobelna,
2019).
Figure 1: (Total contribution of travel and tourism to GDP in the United Kingdom (UK)
from 2012 to 2028)
Source: (Total contribution of travel and tourism to GDP in the United Kingdom (UK)
from 2012 to 2028)
Contribution to national economy
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 Increase in foreign exchange reserves: People travel to United Kingdom makes
purchase and payment in foreign currency which helps in increasing the foreign reserves
of a nation which is regarded as one of the significant assets and source for making
payment for the imports and exports (Martín-Rios and Ciobanu, 2019).
 Contribution to GDP: Gross domestic product can be defined as the total market value of
the good and services produced in United Kingdom. Most of the income of the nation is
derived from the hospitality sector as from the facts of recent report it is analysed that it
had generated total revenue of approximately £130 billion and creating of wealth of
approximately £40 billion in form of taxation for UK Government.
Contribution to international economy Foreign direct investment: Foreign direct investment is concerned with the attracting
investments from the foreign countries or vice-versa. Britannia Hotels have a made a
significant expansion into the many countries leading to the economic development of a
nation through expansion or operating through licensing or franchising. Giant and
multinational hotels coming in UK are regarded as the foreign direct investment
contributing majorly to the development of infrastructure and creation of employment
(Rahman and et. al., 2019). Preserves local culture, tradition and art: People travelling from a world are attracted by
the beauty of the art, culture and traditions of a nation and are conscious with regards to
protecting and preserving the essence of cultural and historical significance. They
generated wealth through visiting and experiencing the events which have positive word
of mouth publicity of a nation and positive image across world.
Review the inter-relationship of operational and functional department of Britannia Hotels
Human resources and house-keeping department: The role of Human resource department in
Britannia Hotels is to recruit and select right person with right set of skills and at right time to
ensure that hotels operations runs smoothly and efficiently. House-keeping department fill the
vacant job posts through hiring and selection efforts of HR department and make the workforce
skilled and competent through various training and development provided by HR department.
Part from this HR department with the help of performance measurement programmes informs
housekeeping department about the productivity of employee and suggest necessary measures to
improve their performance (Tweneboah-Koduah, Anning-Dorson and Nyamekye, 2020).
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Purchase and Food production department: In order to prepare food and meet customer’s
demand it is necessary to have quality of raw materials, inputs and other resources. Kitchen
department procure necessary materials and ingredients by informing purchase department and
coordinated with the department to make sure that right quantity and quality of material are
brought. It is imperative for the kitchen department to make fresh use of materials and
ingredients to produced quality of food and finished products. On the other hand, purchase
department keeps the adequate inventory to keep the demand and supply in balance.
Finance and front office departments: Role of finance departments is to manage the Britannia
Hotel’s cash inflows and outflows. Front office department looks after the bookings of clients
and makes sure that all the dues are of the clients are cleared before leaving a hotel. Additionally,
front desk department informs finance department with regards to the services consumed by
client such as number of days of stay, rooms booked, restaurant bills or other services to make
bill ready and get the settlement of payment (Lemy, Goh and Ferry, 2019).
Assess how franchising and licensing agreements has influenced the global development of the
hospitality industry
Licensing and franchising are becoming essential ways of doing a business in global
market in the hospitality industry. It is a business model where hotel brand, known as franchisor
permits another hotel owner (franchisee) to make use of their brand names, reservation and
system to operate successful in their host county with defined set rights and obligations by the
hotel brand and in exchange of fee. With the help franchising, franchisee can make a use of
established brand name and their process of doing business. These types of methods are
generally used when businesses have gained recognition in the market and expand its operation
into foreign market without having worry about legal laws, procedures and regulations of a
nation (Ivanov and et. al., 2019).
On the other hand licensing is a business arrangement between two hotels, where an
established and well renowned brand like Britannia Hotels permits small business to make use of
intellectual property rights over a specified period time in exchange of royalty fees and under
specific conditions by issuing license. These methods have encouraged the several market
players to position their brand image and values in a global market simply by ensuring that hotel
owners adhere to the standards and practices used by the branded hotel to deliver same quality of
services. One of the advantages using franchising and licensing is that it makes easy entry to the
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foreign market along with the extensive knowledge and customer base provided by the
franchisee or licensee. However, business owners run their hotel operations successfully through
expert advice and consultation, use of extensive training programmes, standards and practices,
technical assistance and marketing programmes of a renowned brand (Xu and Jeong, 2019).
Task 2
Analysis of how global growth, franchising and licensing have contributed towards the economic
worth of hospitality industry
Global growth in the hospitality industry can be defined as the increase in production of
goods and services as compared from one period to another. Goods and services in the
hospitality industry are the emergence and expansion of hotels, development of tourist
attractions, iconic landmarks, new culinary experience and innovations in the activities.
Evidently United Kingdom is one of the top destinations visited by the tourist and holds 7th
position in world’s global tourist destinations. Buckingham palace, Big Ben, Victoria and Albert
museum, National Gallery, Tower of London are the few attractions attracting tourists across the
globe majorly from USA, Germany and France. These tourists are the major source of income
for the economy of UK constituting approximately 24 billion Euros out of which USA tourists
contributed more than 4 billion Euros.
Expansion and emergence of new hotels and developing a new concept such as home
stays, youth hostels have increased the footfall of tourist through making a stay more cheaper
and providing an opportunity to experience the beauty of United Kingdom. Franchising and
licensing have increased the entry of multinational firms which have made a significant
development in the infrastructure and creation of direct and indirect employment for the people
at local and national level such as tour guides, taxi operators etc. Global growth attracts tourists
across globe and increase the foreign reserves of nation through the spending made by travellers
which contribute directly towards overall development of an economy and be an attractive place
for foreign investments (Melián-Alzola, Fernández-Monroy and Hidalgo-Peñate, 2020).
Range of different operational roles within the hospitality industry
Operational roles in Britannia Hotels
 Executives: These personnel hold majorly top position in the Britannia Hotels primarily
responsible for making significant decisions in the Hotel. These personnel may be the
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CEO, directors, or managers of distinct operational departments. Director of Hotel
marketing and sales, hotel manager, Food and beverage manager, event manager etc. Front desk services: One of the significant role of front office operational department is
to make a constant contact with the clients staying at Britannia Hotel to ensure that their
having good time and experiencing the joy and pleasure with their stay. Front desk
handles client queries, complaints, bookings, and maintaining healthy relations with them
to convert them into loyal customers (Sutrisno and Jazilah, 2019). Housekeeping: One of the prime roles of housekeeping department is to provide clean
tidy and hygiene room to the guests and keeping check list of every detailing of room
from changing bedcover and pillow covers to maintaining toiletries stock in bathroom.
Apart from this, housekeeping is responsible for cleaning and maintain safe and hygiene
environment at Britannia Hotels. Maintenance: Role of maintenance department is to ensure that all the equipments in the
guest room such as heater, air conditioner, water pressure, tea and coffee makers, lighting
equipments and other machinery at food production department are in well and working
state. The objective of maintenance department is to provide uninterrupted and flaw less
services to the customer avoiding any breakdowns and malfunctioning of equipments.
Examine the skills required for the roles and shortage of skills within the hospitality industry
Skills required for roles in hospitality industry Communication skills: Hotel managers and staff interacts directly with clients and
represent the brand value of a Britannia Hotels, therefore it is essential for staff members
to have good communication skills (Šerić and Gil-Saura, 2019). Managers need to solve
the client’s problem, conflict resolution and making decisions. It is essential to be a
empathetic, professional and respectful towards employees and customers.
 Detail oriented: In order to deliver exceptional quality of services, staff personnel of the
Britannia Hotels keeps an eye of every minute aspects of the hotels operations to be
perfect, prodigy and excellent quality provider. Detail oriented work brings perfection
and no error work which increases the customer satisfaction and loyalty. Managers also
ensure that each employee is delegated with certain roles and responsibility and are
meeting desired standards to deliver uninterrupted services.
Skills shortage in hospitality industry
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 ICT skills: Employees in the hospitality sector seems to be incompetent and lack of
technological knowledge which is crucial for keeping up the pace with current
technological changes and advancements (Fernandes Sampaio, Hernández Mogollón and
de Ascensão Gouveia Rodrigues, 2020). Flexibility: Rigid and ostentatious behaviour of working professional in hotel industry
have made them incapable of responding to the sudden and unexpected events.
Review the skill gaps within the hospitality industry with regards to different operational roles
Skills gaps in distinct operational roles
 Lack of cooking techniques and skills: Hospitality industry is facing a shortage of
highly professional chef’s, cooks and waitress. Due to the lack of professional chefs
Britannia Hotels is lacking in good presentation and preparation of food to the customer
to make it more appealing and mouth watering.
 Technological skills in operations: Another challenge that hotel industry is facing is
integration and lack of technological skills into their business operations. In modern
world technology is changing at a fast pace and hotels are using traditional reservations
system and support to execute their business operation (Goh and King, 2020).
 Leadership skills: Reportedly, hospitality industry is facing a huge challenge in retaining
and motivating the workforce which have lead to the high employee turn-over rates.
Managers need to work on boosting the moral of employees and build positive relations
with employees through keeping their needs first which may attract and retain and
talented workforce.
Analyse the impact of skills gap on hospitality businesses and suggest void solutions for
addressing these skills gap
From the above skills gap it is evident that Britannia Hotels is lacking in good and
attractive cooking and presentation skills which have made a significant decline in the sales of
restaurants. Customers visit the destination for cuisine and culinary experience apart from culture
and traditions, non appealing and ordinary presentation of food makes customer experience bad
and leads to the dissatisfaction. Apart from this, there is a lack of tech –savvy staff in the
Britannia Hotels due to which business has not integrated technology into their business
operations and its competitiveness has declined resulting in sales and profitability. In order to fill
the skill gap of ICT skills it is recommended for Britannia Hotels to provide extensive
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knowledge and training sessions to make employees more competent and adaptable to work with
technology (Line and et. al., 2020). Additionally, to fill the gap in food and service department it
is recommended to attract young and fresh talents from University and Cuisine & Culinary
institute so that customers can experience delightful cooking and presentation of food in their
restaurants and hotels.
Part B
Task 3
Covered in PPT
Task 4
Covered in PPT
Conclusion
From the above mentioned report it has been concluded that one of the largest contributor
towards the development and growth of UK’s economy is hospitality sectors which is constituted
by the several businesses. Generation of income, infrastructure development, creation of income
and wealth, increase in the foreign reserves are the major contributors of hospitality industry.
However it has also analysed that the industry is facing a serious challenge through changes in
the external environment especially due to pandemic and political disturbance in several nations.
Furthermore, there are several trends emerging out from external environment fuelled by the
technological and economic factors which are providing opportunities for hospitality industry to
flourish and grow.
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References:
Books and Journals
Cheng, X., and et. al., 2019. An investigation on online reviews in sharing economy driven
hospitality platforms: A viewpoint of trust. Tourism Management. 71. pp.366-377.
Fernandes Sampaio, C.A., Hernández Mogollón, J.M. and de Ascensão Gouveia Rodrigues, R.J.,
2020. The relationship between market orientation, customer loyalty and business
performance: A sample from the Western Europe hotel industry. Tourism and
Hospitality Research. 20(2). pp.131-143.
Goh, E. and King, B., 2020. Four decades (1980-2020) of hospitality and tourism higher
education in Australia: Developments and future prospects. Journal of Hospitality &
Tourism Education. 32(4). pp.266-272.
Grobelna, A., 2019. Effects of individual and job characteristics on hotel contact employees’
work engagement and their performance outcomes: A case study from
Poland. International journal of contemporary hospitality management.
Huang, G.I., Chen, Y.V. and Wong, I.A., 2020. Hotel guests’ social commerce
intention. International Journal of Contemporary Hospitality Management.
Ivanov, S., and et. al., 2019. Progress on robotics in hospitality and tourism: a review of the
literature. Journal of Hospitality and Tourism Technology.
Lemy, D., Goh, E. and Ferry, J., 2019. Moving out of the silo: How service quality innovations
can develop customer loyalty in Indonesia’s hotels. Journal of Vacation
Marketing. 25(4). pp.462-479.
Line, N.D., and et. al., 2020. Control, use and ownership of big data: A reciprocal view of
customer big data value in the hospitality and tourism industry. Tourism
Management, 80, p.104106.
Martín-Rios, C. and Ciobanu, T., 2019. Hospitality innovation strategies: An analysis of success
factors and challenges. Tourism Management. 70. pp.218-229.
Melián-Alzola, L., Fernández-Monroy, M. and Hidalgo-Peñate, M., 2020. Information
technology capability and organisational agility: A study in the Canary Islands hotel
industry. Tourism Management Perspectives. 33. p.100606.
Rahman, M., and et. al., 2019. Developing a hierarchical model to enhance business excellence
in hotel industry of Bangladesh. International Journal of Contemporary Hospitality
Management.
Šerić, M. and Gil-Saura, I., 2019. Understanding brand equity in hotel firms. What is the role of
brand loyalty and satisfaction?. International Journal of Contemporary Hospitality
Management.
Sutrisno, E. and Jazilah, I., 2019. The licensing policy for groundwater extraction and
management for hospitality industry in cities in developing countries. Water
Policy. 21(4). pp.758-767.
Tweneboah-Koduah, E.Y., Anning-Dorson, T. and Nyamekye, M.B., 2020. Impact of
customization and innovation on hospitality firms’ performance. Journal of
Hospitality Marketing & Management. 29(1). pp.106-120.
Xu, Y. and Jeong, E., 2019. The effect of message framings and green practices on customers’
attitudes and behavior intentions toward green restaurants. International Journal of
Contemporary Hospitality Management
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[Online] Available through: < https://www.statista.com/statistics/598093/travel-and-tourism-
gdp-total-contribution-united-kingdom-uk/
>./
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