Contemporary Hospitality Industry: A Comprehensive Analysis of Hyatt Regency, UK

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on Hyatt Regency, UK. It explores the scope, scale, and diversity of the industry, examines the management structure of hospitality organizations, and assesses the role of professional bodies. The report also analyzes emerging trends in staffing demand and supply, recent developments affecting the industry, and potential future trends. It concludes with an impact analysis of these trends on Hyatt Regency.

Contemporary Hospitality Industry
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Table of Contents
Introduction............................................................................................................................ 3
Company Overview................................................................................................................ 3
Task 1.................................................................................................................................... 5
LO1......................................................................................................................................... 5
A. Understand and discuss the scope, scale and diversity of the hospitality industry with a
global perspective and discuss the management structure of different hospitality organization
using your experience in your chosen organization (P 1.1 and P 1.2)....................................5
B. Examine and assess the role of professional bodies and hospitality related organizations
such as the Institute of Hospitality (P1.3).............................................................................10
Task 2.................................................................................................................................. 12
A. Assess the emerging trends in the demand and supply for hospitality staffs and discuss
how the industry attempts to meet the staffing requirements using your organization as an
example (P2.1)..................................................................................................................... 12
B. Based on the roles and responsibilities of the hospitality staff discuss the skills and
qualifications requirement for the personnel (P2.2)..............................................................12
Task 3.................................................................................................................................. 14
A. Analyze recent developments affecting the hospitality industry in the areas of legal (e.g.
contracts and negligence or health and safety), operations, and management. Use your
organization for insights in your discussion (P3.1)................................................................14
B. Discuss how the overall image of the hospitality industry is created and managed and
assess the current situation of your chosen organization in terms of the image (P3.2)........15
Task 4.................................................................................................................................. 16
A. Present potential trends and developments in the hospitality sector using justified
predictions (P4.1)................................................................................................................. 16
B. Carry out or produce an impact analysis for the predicted trends using your chosen
organization as an example (P4.2).......................................................................................16
Reference List...................................................................................................................... 19
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Introduction
The industry, which is responsible to provide facilities such as food and accommodation are
referred to hospitality industry. This industry carries out a broad business, which provides
various services to the customers. The prime aim of the hospitality industry is to provide
ultimate customer satisfaction by providing certain specific experiences to the customers.
Hospitality industries can be sub-categorised into three major areas, which are
accommodations, food facility and travel and tourism. A newcomer to any hospitality industry
needs to learn the basic structure and nature of the hospitality industry and its operations.
The newly recruited management trainee at Hyatt Regency, UK is required to produce a
report to the senior manager, which will be based on the basic knowledge about hospitality
operations on a global perspective. In this project report, a detailed description has been
given about the scale and scope of hospitality industry by taking example of Hyatt Regency,
UK.
Company Overview
Hyatt Regency, which was founded in 27 September 1957, about 60 years ago is an
American multinational in global hospitality sector. The company owns, franchises,
manages, full and select service hotels, resort and many other properties around the world.
The Company operates all the way through four segments: owned hotels and leased hotels;
America’s franchising and management (Americas); ASPAC franchising and management,
and EAME/SW Asia franchising and management (Hyatt.com. 2018). The company
operates its full service hotels and resorts through seven brands that are Hyatt Centric,
Grand Hyatt, Hyatt Zilara, Hyatt Ziva, etc., are some of the examples of Hyatt’s inclusive
hotels. The company is also known to manage and provide service and license trademarks
to residential ownerships that are close to Hyatt branded full service hotels. They provide
services like special event spaces for groups, signature restaurants, programs, guestrooms
and meeting.
Grand Hyatt hotels provide many services and features to their customers like
accommodations, restaurants, bars, spas and fitness centres. According to recent research,
the Hyatt hotels corporations consist of nearly 650 hotels including 281 managed properties,
about 35 owned properties and more than 300 franchised properties. According to
December 31, 2016 the corporation also has six all-inclusive resorts, 16 vacation ownership
properties and about 19 residential properties. The company has a global presence,
therefore faces immense competition from hundreds of other hotel corporations. With the
advent of modernisation, the hospitality industry has observed immense growth in the
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number of rivals, offering luxurious experience to their customers and clients. The company
is well known around the world for its fine, luxury hotels, their excellent cuisines and
customer service.
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Task 1
LO1. Understand the current structure of the hospitality industry
A. Understand and discuss the scope, scale and diversity of the hospitality industry
with a global perspective and discuss the management structure of different
hospitality organization using your experience in your chosen organization (P 1.1 and
P 1.2)
In order to perform effectively inside the market, it is mostly required by an organization to
keep entire focus on understanding the scope, scale and diversity of the entire industry. In
order to understand the concept, the example of Hyatt Regency has been taken into
consideration. . The aim of this company is to provide better quality foods along with
services to the consumers (Petrovskaand Nestoroska, 2014). This section of the assignment
depicts about the recent scale, scope and diversity of this company. For being a famous
hospitality company inside the UK market, the company holds a significant percentage of
market share and profit share. The scale, scope and diversity categories of this company
can be described as follows;
Scale: In case of scale, the company includes multiple bars, restaurants, pubs, gaming
section, event organization and others.
Figure 1: Direct Hospitality Management
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(Source: Jones, 2016)
From the global statistics of GDP, it can be identified that hospitality sectors contribute near
about 7 trillion of the entire business GDP, which is near about 11% of the total GDP of UK.
Scope: The organization creates multiple opportunities like employment, turnovers, GDP
contribution and others to the society and to the nation as well (Jones, 2016). From the
above statistics it can also been stated that 1,50,000 cafes and restaurants are established
inside the UK market and in case of employment, near about 24000 of jobs are created by
this sector in the year of 2010.
Diversity: In case of diversity, the organization can be categorized into two different parts
like; socioeconomic backgrounds and departments connected to each other, which can be
described as follows;
Socioeconomic background: In case of socioeconomic background of Hyatt Regency, it
has been identified that the organization belongs to ancient and traditional cultures. The
staffs of this company are always formal and maintain a positive attitude and behaviour.
Most of the people who have visited this organization are from different cultural backgrounds
and therefore they are facing several problems while communicating with each other (Lu et
al., 2016). Therefore, the company arranges different social and cultural events inside the
workplace, which help the company to overcome this diversification among their culture. In
general, socioeconomic background can be considered as a set of an individual’s
background, income, occupation and others. This factor can also be considered as the
primary determinant for accomplishing success as well as future life perspectives. In case of
Hyatt Regency hotel, socioeconomic background refers to the employee’s salary,
background and job designation. This factor allows the company to identify the social and
tradition background of an employee so that they can treat them in accordance with their
Departments linked with each other: For being a renowned and medium sized
organization, the hotel includes several departments, which are linked with each other
effectively. This implies that every department of the company has the ability to maintain and
handle others. For example, the main purpose of planning department of this organization is
to make effective planning sot that the company can increase their products and services
quality as well as can generate more revenue from the UK market (Wang et al., 2014). In
case of sales and marketing department of this company, this particular department monitors
the marketing (business activities) of the company efficiently. These two departments are
interlinked with each other as the marketing planning and strategies created by the planning
department should be followed effectively by the sales and marketing department in order to
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achieve the organizational aims and objectives. On the other hand, the marketing
department makes the analysis of marketplace in order to identify the potential threats and
activities of their rivals inside the market (Petrovska and Nestoroska, 2014). On the basis of
those reports and analysis, the planning department of the company makes effective
planning so that it will be possible for the organization to avoid all of those threats from the
market and can be able to gain competitive advantage from the market as well.
The management structure of hospitality industry can be categorized into three different
parts such as; hierarchical structure, flat structure and matrix structure.
In case of hierarchical structure, the management or the authority of the organization holds
the main power and their orders need to be maintained by all the staffs of the company.
Figure 2: Hierarchical organizational structure
(Source: Wang et al., 2014)
In this context, Hilton Hotel is taken into consideration. A certain number of benefits can be
observed by the hierarchical structure of this company such as;
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Authority: The authority holds the highest power of the company and their orders should be
followed by every employees of the organization. This also helps the company to perform
their activities in an effective manner.
Communication: Communication is one of the greatest advantages that the company is
achieved from this structure. Through effective communication, the teamwork performance
of the company is increased effectively and as a result the production rate of the company is
also increased gradually.
In case flat structure, the employees of the organization are performed their tasks by
making a group (teamwork), and as a result the productivity of the company is increased
gradually. J.W. Marriot is now using this structure in order to make their products more
effective and efficient. It also allows the employees to perform their work on their specialized
fields so that the quality of their products and services are maintained properly.
Figure 3: Flat organizational structure
(Source: Wang et al., 2014)
Air Asia is now using Matrix organizational structure in order to be more effective and
efficient. As this structure allows the company to perform their activates by taking the help of
other departments and all the resources can be utilized by the company in an effective
manner. All the projects and products of the company can be coordinated by taking the help
of financial department of this company.
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Figure 4: Matrix Organizational Structure
(Source: Petrovska and Nestoroska, 2014)
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B. Examine and assess the role of professional bodies and hospitality related
organizations such as the Institute of Hospitality (P1.3)
The main purpose of professional bodies is to maintain and control all the organizational
activities along with the departments of that organization in an effective manner. In this
context three types of hospitality organizations are taken into consideration and can be
described as follows;
Institute of Hospitality: The main aim of this organization is to work for the development of
hospitality industry. In the year of 1938, this organization was established and main functions
of this organization can be described as follows;
 Accreditation and qualification: In the domain of management, this factor of the
company offers different types of vocational programs as this factor is considered as
the qualified as awarding body (Jones, 2016).
 Membership: This factor of the company helps to provide the necessary opportunity
in order to improve the skills of the employees, which are needed in order to hold the
position of this industry into the recent market.
 PARN: This factor of the organization allows offering better quality products and
services to the customers (Lu et al., 2016).
British Institute of Innkeepers: The main purpose BII is to provide license to the hospitality
organization across the UK and roles of this company can be described as follows;
 Membership advantages: This part of the company helps to provide various
magazines, newsletters, monitoring services and others.
 Advising: This factor helps to provide necessary legal advice to the company (e.g.
licensing features, legislatives and economic).
 Charitable status: This factor helps to promote the products’ quality and standards
inside the marketplace in an effective manner.
British Hospitality Association: The aim of this organization is to provide necessary
support to the hotels and this organization is also very much concerned about the restaurant,
hotel and catering. This company works by maintaining three basic factors and those can be
described as follows;
 Health: Health refers to the process through which the management of the company
can change the infrastructure of a hospitality company and in order to improve the
policy for improving the industrial health (Petrovska and Nestoroska, 2014).
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 Sustainability: Social and environment regarded aspects can be taken into
consideration in this context.
 Economy: This factor refers to the prosper growth for maintaining the global
competition and rivalry era.
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Task 2
LO2. Understand staffing in the hospitality industry
A. Assess the emerging trends in the demand and supply for hospitality staffs and
discuss how the industry attempts to meet the staffing requirements using your
organization as an example (P2.1)
There is a high demand for the hospitality staffs. Hyatt Regency needs to take some
attempts in order to meet the requirement of staffing. Due to globalization, the lifestyle and
the business structure has undergone a vast change. The new and upgraded lifestyle of
people has helped to develop the entire hospitality industry, due to which the scope of
employment has increased largely. Hospitality industry, mainly deals with a good relationship
between host and the guests. There is a huge opportunity for job in this entire hospitality
industry. Every organization has different staffing requirements. Similarly, Hyatt Regency
has some unique demand for hiring staffs within the organization. The advancement in
technology is one of the major factors, which have contributed largely regarding the growth
and development within Hyatt Regency and the entire hospitality industry.
The business organization has implemented global networking scheme within the
organization. Internet and social networking sites have helped the organization to increase
knowledge and undertake effective strategies in order to develop the operations of the
business and provide full customer satisfaction with the services they offer. The organization
needs to give proper training to their employees so that they can perform better in their
respective roles. Employees are the most important resource of any organization. Hyatt
Regency has implemented certain strategies to retain staffs. They provide a good working
environment and provide motivation to all the employees. The business organization
provides career opportunities, sometime incentives, and some other promotional offers,
which may enhance the interest of employees toward his or her work. Implementing this
strategy not only helps Hyatt Regency to retain staffs, but also helps the organization to gain
huge competitive advantages within the hospitality industry.
B. Based on the roles and responsibilities of the hospitality staff discuss the skills
and qualifications requirement for the personnel (P2.2)
The major responsibility of the staffs in any hospitality industry is to maintain and keep up
the standard of the industry. The roles and responsibilities of the hospitality staffs of Hyatt
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Regency are discussed hereafter. The qualifications, which are required for the personnel
are also discussed.
Role of supervisor:
The main responsibility of the supervisor of Hyatt Regency is to keep check on the
operations of the hotel. The supervisor needs to look after the training and development of
the employees. Supervisors are responsible to manage inventory of the organization (Kang
et al., 2015).
Qualification of supervisor:
The supervisor of Hyatt Regency and all other organizations in the hospitality industry must
have a very good communication skill and must have some experience so that they can
keep check on the entire operation of the hotel industry. The person who will be selected as
the supervisor must have an educational background based on business management.
Role of manager:
The prime responsibility of the manager of Hyatt Regency is to plan about the sales of the
organization. Managers need to analyze the sales and profits of the industry. They are
responsible top maintain a proper standard of the organization. After recruitment process,
managers are responsible to provide proper training to the staffs and are responsible to
motivate those employees to work (Loveland et al., 2016).
Qualification of manager:
Managers need to be highly qualified with an associate degree and certificate of the same.
Managers must possess interpersonal as well as organizational skill.
Role and qualification of workers and volunteers:
The workers of Hyatt Regency need to understand their particular job properly. They must
hold degree and certificate in those areas, for which they are appointed. The qualifications of
the staffs vary from person to person and are according to the level of work. The workers
should have to support rest of the team members and need to work for improving the
organization. They need to be punctual and have to be reliable and trustworthy, such that
they can carry out their respective duties in the most effective way.
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Task 3
LO3. Understand recent development affecting hospitality
A. Analyze recent developments affecting the hospitality industry in the areas of legal
(e.g. contracts and negligence or health and safety), operations, and management.
Use your organization for insights in your discussion (P3.1)
There are several issues such as operational issues, managerial issues and legislative
issues, which affects the hospitality industry in some way or the other.
Operational issues affecting the hospitality industry
The operational issues that affect Hyatt Regency and most of the organisations in the
hospitality industry are the cost of operating the business, rate of employee turnover, internal
and external challenges. The rate of employee turnover is one of the most common issues
faced by any organization belonging to the hospitality industry. The employee must have a
proper attitude, which is required to serve a customer satisfactorily. The turnover cost of an
employee is said to be 30% more than their month salary, which is based on the amount that
is spent due to advertisement for vacancy, after that providing proper training to the
employees (Jones et al., 2016). The high labour cost has a huge impact on the organization
and is considered as a major operational issue. The cost of operation is also considered as a
problem for the hotel. To cope up with the advanced technology, the organization need to
spend much on technological equipments and provide customer satisfaction.
Managerial issues affecting the hospitality industry
Finding for a right manager is a very difficult task for the hotel owner. Manager plays a very
important role within the organization and thus selection of a proper and efficient manager is
necessary for the organization to achieve success further. Manager of the organization is
responsible to motivate all the employees of the organization and also to keep proper track
of the entire operations of the business organization. Thus, it is very important to select a
person, who will be able to manage sales, profit and operations of the entire organization in
the most effective way (Moutinho and Vargas-Sanchez, 2018).
Legislative issues affecting the hospitality industry
There are certain legal issues, which affects the hospitality industry. Hyatt Regency has
implemented the new overtime rule. According to this rule, the employees need to work for
more time rather than their schedule working time. A rise in salary is also introduced for
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those employees who will work overtime. The Federal Trade Commission has introduced a
new rule for cyber security. The organization follows this rule in order to protect all personal
information of employees and the customers. Thus, legislative issues also affect the
hospitality industry largely (Hyatt.com, 2018).
B. Discuss how the overall image of the hospitality industry is created and managed
and assess the current situation of your chosen organization in terms of the image
(P3.2)
The overall image of any organization based on the hospitality industry depends mainly on
the performance of individuals working within the organization and their way of providing
customer satisfaction. Hyatt Regency is a well-established organization in the hotel industry.
The hotel provides with all luxurious facilities to the customers. Due to the advancement of
technology, they also provide seamless technology within their organization to the
customers, which easily attract customers. The hotel provides facilities for all categories of
visitors. All the top-level managers and other staffs of the organization understand their job
role properly and work accordingly in order to provide full customer satisfaction. The current
situation of the Hyatt Regency very stable in case of providing quality services to the
customers. However, situation may arise sometimes, that due to some negligence by the
employees; the organization would not be able to meet the needs of the customers and
could not provide full customer satisfaction. This may exploit the entire image and standard
of the well-known organization. Thus, to avoid any such adverse situations, the business
organization need to hire proper qualified employees, who are suitable for their job roles and
they can work effectively for the organization by maintaining the brand image also by
providing full customer satisfaction, which is the main goal of the organization.
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Task 4
LO4: Be able to recognise potential trends and developments in hospitality
A. Present potential trends and developments in the hospitality sector using
justified predictions (P4.1).
The hospitality industry is following some trends in order to develop business organizations
in the hospitality sector. Some of the present trends are discussed below:
Tech-Explosion: In today’s world, most of the guests are self-sufficient. People are much
more comfortable in using mobile application and several websites to collect proper
information regarding hospitality services rather than meeting any agent. Hyatt Regency and
all other hotel in this industry need to update their day-to-day information about facilities and
services in their official website, so that the customers can get easy access to the services.
Some of the visitors are business travellers and they demand for high-end technical
equipments for business meetings and a technical support person. Thus, the organization
needs to look after this trend and have to work accordingly in order to provide customer
satisfaction (Carmo, 2015).
Increased emphasis on health and well-being: In today’s world, people are much
concerned about their health and fitness. Thus, the hotels should provide fitness
equipments, facilities for spa and other recreational facilities for the customers. Hyatt
Regency provides the customers with well-equipped fitness centres, pools and spas for the
visitors. They also provide healthy food options for the travellers as people are conscious
about their health and they will prefer healthy food for their meal.
Requirement of seamless technology: People, all over the world, demand for seamless
connectivity in hotels. Hyatt Regency offers their customers with the facility of mobile check-
ins and checkouts and other digital services during their stay.
B. Carry out or produce an impact analysis for the predicted trends using your
chosen organization as an example (P4.2).
The predicted trends as already mentioned are the tech explosion, increased emphasis on
the health and well-being of people and the requirement of seamless technology within Hyatt
Regency. All this trends have a huge impact on the business activities of the business
organization. Most of the guests in today’s world are self-sufficient and they would prefer to
book their own hotel accommodation and other services through mobile via websites and
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other applications. For this purpose, the business organization needs to provide valid
facilities to the visitors, so that the customers will become highly satisfied with the services
that the business organization provides. If the hotel would not be able to provide sufficient
facilities to their customers, then it will have a huge negative impact on the organization.
People nowadays put much more emphasis on the health and well-being and thus the
organization need to provide facilities and services accordingly. Hyatt Regency provides the
customers with all such fitness and recreational facilities but they need to adapt much more
technologies, so that they can serve the customers in a much better way.
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Conclusion
The newly recruited management trainee was responsible to generate a report based on the
hospitality operations of Hyatt Regency. In this project report, a detailed and critical analysis
has been done about the scope, scale and diversity of the Hyatt Regency and the entire
hospitality industry. The organizational structure of different organizations has been
discussed. The role of different staffs of the business organization and the entire hospitality
industry are mentioned. All the issues such as operational issues, managerial issues and
legislative issues, which affects the entire hospitality industry is also discussed with detail
analysis in this project report. The recent potential trends are also mentioned and the hotel
organization should work according to the recent trends so that the organization can develop
further and provide ultimate customer satisfaction to the customers.
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Reference List
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Contemporary Hospitality Management, 28(1), pp.36-67.
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