The Contemporary Hospitality Industry: Operational Roles, Skills Gap, PESTLE and SWOT Analysis

This report discusses a number of operational roles within the hospitality sector, examining key skills needed for these roles, at the same time the skills gaps would also be taken into consideration. A broad analysis is to be made to articulate the impacts of skills gaps on the hospitality businesses then some valid solutions would also be transmitted to address skills gaps then PESTEL and SWOT analysis are to be depicted in order to present business environment picture of a hospitality business working in UK. At the end of the module the impacts these external factors bring to the organization and its operational performance would be evaluated.

THE
CONTEMPORARY
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION.......................................................................................................................3
MAIN BODY..............................................................................................................................3
Operational roles within the hospitality industry....................................................................3
Skills needed within hospitality industry and current skills shortages....................................4
Skills gape in the hospitality industry with respect to different operational roles..................5
Impact of skills gape and valid solutions................................................................................6
PESTLE analysis of UK hospitality sector.............................................................................7
SWOT analysis of Hilton Group.............................................................................................8
Impact of external factors on the development of organizations............................................9
Evaluation of external factors impact on the current trends..................................................10
CONCLUSION.........................................................................................................................11
REFERENCES..........................................................................................................................12

INTRODUCTION
Hospitality industry is the industry which covers services such as hotels, food and
beverages, tourism, event management, theme parks etc. With the progress of time these
services are getting higher. The report will be discussing a number of operational roles within
the sector, examining key skills needed for these roles, at the same time the skills gapes would
also be taken into consideration. A broad analysis is to be made to articulate the impacts of
skills gapes on the hospitality businesses then some valid solutions would also be transmitted
to address skills gapes then PESTEL and SWOT analysis are to be depicted in order to present
business environment picture of a hospitality business working in UK (Eissner and Gannon,
2018)
At the end of the module the impacts these external factors bring to the organization
and its operational performance would be evaluated. With this regard some specific examples
will be shared in attempt to present entire picture of hospitality sector in UK. Along with it, a
critical assessment shall be presented analysing impacts of external factors on current trends
and development of the sector.
MAIN BODY
Operational roles within the hospitality industry
In UK hospitality sector is one among the most thriving sectors. It covers a range of
services such as theme parks, event planning, drink service, food, lodging, travel and tourism
etc. Over the time, with the progress of consumerism the sector is grabbing great market share
so there are number of operational roles are bing played in the hospitality industry. These are
the main roles played within the hospitality industry-
Housekeeping roles- This is the foremost role, where key acts such as keeping cleanliness,
making premise beautiful, attractive, and offering great ambience to the visitors.
Food and beverage related services- There are such services where it is ensured that the
food and services must be given in the best manner. It helps to attract clients and also extend
them sense of superiority (Filimonau, 2021)
Marketing roles- One of the most crucial role in hospitality sector is marketing. Having great
services is not enough, transmitted that idea of others is also an essential thing. So marketing
is the most salient role.

Human Resource management roles- In hospitality there are number of personnel work
holding different positions so human resource management becomes an essential task. The
industry is based on mainly human resources therefore well articulated management is
needed.
Food production- In hospitality food production is another significant role. Since in different
terrains of hospitality like hotels, tourism etc. food play comprehensive role to satisfy
customers.
Communication- The hospitality sector can not be imagined without communication. It is
mainly based on services and specifically in the age of globalization it is rigorously needed to
have good communication.
Customer analysis and customer relationship management- Satisfaction of customer is
indicator of future success so this becomes a key role in hospitality sector. To timely analyse
customers and then making changes.
Skills needed within hospitality industry and current skills shortages
There are range of skills are needed in the people who are associated with the
hospitality sector. Staff is also known as Team, Personnel, Workforce, Employees, Colleagues
etc. Hospitality industry is quite dynamic in nature. UK is the 7th biggest tourist place, had
around 37.9 million visitors in 2018 so it can be said that it is having rigours need of high
skills (Reilly, 2018)
The main skills needed within the industry are Good ability of communication, Ability
of resilience, guts to take initiatives, Compliance with the prevailing rules and legitimation,
Multitasking, great understanding of market dynamics, adaptability in term of operational
efficiency, understanding of different cultures, skill to manage human resource, higher
marketing strategies etc.
These skills are needed in the sector in order to carry out different roles and actions.
There are some skills shortages too. Specifically after Covid-19 the sector is experiencing
some skills' shortage.
One of the biggest skill shortage came in form of supply chain failure. The hospitality
sector is going through the peril of not having efficiency supply chain management. It is not
only hindering its operations but also impacting strategic stand of the entire sector.

Around 6% people of the nation are engaged in the sector. Yet there is issue of highly
skilled employees to play different roles. 44% are below 30 year age and just 53% are full
time employees. So there is need to pay attention to them in order to hike their efficiency
(Treuren, Manoharan and Vishnu, 2021)
The marketing skills are also having some shortage. In other nations like USA and
France who are having their widely expanded market. Their marketing efforts in hospitality
sector are well channelized so there is need to work on this skill shortage.
Skills gape in the hospitality industry with respect to different operational roles
There are number of operational roles were evaluated above such as Housekeeping
roles Marketing roles, Food and beverage related services, Human Resource management
roles, Food production, Communication Customer analysis and customer relationship
management, hospitality accounting practises etc.
As it is known that the sector is notching up skyrocketing growth form last couple of
years. So the fact can not be denied that there is need to work upon these skills gape which are
somehow reducing capacity of operational roles.
One of the biggest skill gape comes in form of lack of proper Accounting practise.
There is need to bring unified system. A lot of sectors are fully abiding with unified
accounting practise but in UK for hospitality sector GAAP has set FRS 102 but due to lack of
due skills this is not being executed to the fullest extend (Chung and D’Annunzio-Green,
2018)
Marketing skills are still not on their apex level. In the age of social media revolution
the sector can not rely on only conventional tools, but in UK hospitality sector still
organizations are not using social media platforms efficiently in order to grab bigger share.
Work efficiency skills are also not as appropriate as them should be. Since there are
less number of people who are working as full time employee. It is the reason that in this
sector skills employees are rarity. It causes dissatisfaction to the visitors or clients. This is a
hindering way to hiking Customer Relationship Management.
Supply chain management is another area where the sector is experiencing gape of
skilled. Multiple times it is seen that the suppliers are not able to fulfil the demands of
hospitality sector. It is toppling efficiency of hospitality industry.

Dissatisfied employees and not having great sense of superiority is affecting
performance of the sector. There is a big gape in their morale. They are working as part-time
and are not ready to take it as full time career so this is living testimony of poor sectoral
management.
Impact of skills gape and valid solutions
These skills gape drive number of catastrophe to the sector. Since, the hospitality
sector is one among the most sensitive sector, it is engaged in extending such services which
are directly related to leisure and comfort priorities of people.
These skills gape reduces employee retention rate. If a significant share of employees
are not looking such jobs as full time career then they can not be retained. If they are not
being retained then the businesses would not be able to extend its best to the clients (Calinaud,
Kokkranikal and Gebbels, 2021)
The businesses would not be able to compete to other organizations. Hospitality sector
of France, United States, Italy, Poland, Ireland, Spain are still giving tough fight. At the same
time after the legal decision of Brexit there will be bigger challenges for local hospitality
sector.
Due to poor marketing skills the organization may lose its worth. There are hyper
efforts are made by others to promote their notion but due to such skill gape it is not looking
much viable in the prevailing circumstances.
Poor customer satisfaction can be seen as one of the most horrendous impact of skill
gape. Specifically after pandemics the customers are quite aware of hospitality sector and the
services they are offering. If there is any gape between the expected standards and actual
services then they will get dissatisfied (Karim, 2020)
These are some valid solutions to eradicate these skill gapes-
Training programmes are strongly recommended. If the employees are given training
to boost up their skills then they will be less likely to leave the job and would strive to give
more time. The training programmes will also enhance their understanding of different roles
which is in benefit of the sector.

Hospitality sector products are perishable, intangible, inseparable in nature so there is
need to work on supply chain management skills. It would not only eradicate the gape but will
also give upper hand to the sector in the global competition.
There is need to enhance customer analysis understanding. It will help to fulfil their
demands and also pave way to cut down the barriers. This strategy is helpful to make
employees well groomed, and meet the need of both marketing and communication gapes.
If there is good understanding of customer needs then both marketing and
communication efforts can be driven to bring better outcomes.
PESTLE analysis of UK hospitality sector
For making assessment of environmental factors affecting hospitality sector organizations the
PESTLE Model is being applied as-
Political Factors-
There are number of political factors which are having capability to affect the development of
organizations working in hospitality sector. For instance- In 2020 when in UK Covid-19 was
showing its worts form and hospitality sector got buffeted. In such circumstances government
supported small and medium business to get their form back (Goethals, 2019)
Economic Factors-
Hospitality sector is hugely depended on economic factors. Such as both domestic and
international economic factors are having their great impact on the development of hospitality
sector. Now the sector is offering jobs to around 6% people.
Social Factors-
Approach of society and their cultural inclination also decide that how the sector will perform.
If people are allowing their-self to experience different facilities such as bar, pub, hotels,
tourism etc. then the sector will experience development.
Technological Factors-
Technology provides ease to communicate, market the idea. It offers wide window to
hospitality sector. By aligning with present technological norms the organizations can hike
their performance. Social media tools are advancing efficiency of hospitality organizations.
Legal Factors-

The policies about monument, tourism, taxation are also quite relevant to the development of
sector. There are some actions such as giving Temporary Licence, providing loans, copyright
licence etc. (Canhoto and Wei, 2021)
Environmental Factors-
In hospitality sector things like Paper, Furniture, Food, appliances are used. The components
are having their great impact on environment so the policies with respect to environmental
factors decide development of hospitality sector.
SWOT analysis of Hilton Group
For analysing business environment on hospitality business Hilton is taken. This is the
organization engaged in hospitality sector. The SWOT analysis is as-
Strengths-
 The organization is having great brand value.
 Using innovative technological tools.
 Employee retention rate is higher.
 Having more than 540 hotels and notching presence in around 78 countries (Gebbels,
et al. 2019)
Weaknesses-
 The market share is still limited.
 Government policies affected internal operations of the organization.
 Lack of infrastructure in a few nations
Opportunities-
 The market is offering great potential for expansion.
 May go for innovation in the customer services.
 Digitalization gives upper hand.
 Hospitality sectors of different nations are also getting widened.
 The attention of various governments is looking favourable to this sector.
Threats-
 Economic slowdown in different nations is a big issue.
 The organization is facing severe competition.
 Due to Brexit it is losing its command from a range of markets.
 The political shuffles and approaches may take any time tough actions.

Form the SWOT analysis made above some key decisions can be made. It guides
decision-making process. From the analysis above it was found that the organization is having
great market image which can be used for its expansion. By observing the strengths the
decision of expansion or diversification can be made.
The business is already being carried out in around 78 countries so with this regard
Hilton may make decisions in diversified manner. It would further pave way to enhance its
competency in the global market (Nandonde, 2019)
There are some threats also identified. Such as political threats, economical threats. To
cope up with these perils the organization can make its decision-making process strategic in
nature. The long term consequences can be speculated to make rational decisions for business
growth.
So form the analysis above it can be summarized that SWOT analysis is very helpful
and it also informs the decision-making process abort key areas to accentuate.
Impact of external factors on the development of organizations
External factors are having their great impact on the performance of businesses
operating in hospitality sector. The impacts are as-
The policies of government are having their immense role in the development of
organizations operating within hospitality sector. For example- The Business Names Act
1985, laid down regimes to depict the name of business which is not being copied. It helps
organizations of hospitality sector to get thrived. Companies like Hilton having great brand
name so it can not be used by others to take advantage of its goodwill. This makes businesses
develop better (Pelembe and Smith, 2018)
Economy is the most affective external factor. How the economic trends are behaving
paves the way forward. For example- Now Hilton group is facing issues due to global
slowdown. In different nations the impact of Covid-19 can be seen on their economy which is
affecting development of hospitality sector organizations.
Social factors are such aspects which has always been underrated. Hospitality sector is
directly aligned with social elements. For example- After going through pandemics people
are less likely to visit pubs, bars etc. They prefer having healthy diet so there are number of
organizations which are now offering healthy and green food to their clients. It allows them to
get fortified.

Technological elements play comprehensive role in development of hospitality
industry. Earlier the facilities such as micro blogging sites, and some other customer
management tools, data analysis tools were not available but now it is so handy and
affordable. For example- Hilton group is using different tools such as personal web page,
online platform to attract its online and worldwide spread customers.
Legislative factors such as government rules, regulations, regimes etc. are also behind
performance of hospitality sector organizations. If the rules and regulations are inclined to the
sector then it works in favour. For example- the move of Brexit is affecting development of
British hospitality sector organizations.
Evaluation of external factors impact on the current trends
External factors are presenting sort of opportunities and threats at the same time in the
hospitality sector of UK. The current trends of UK hospitality sector are quite gigantic. In UK
at present the labour market is showing positive move yet it is not much higher. In the year
2021 the employment rate was 74.7% which came up to 75.7% in the year 2022 first quarter
(Koumoutsidi, Pagoni and Polydoropoulou, 2022)
If just see some current trends in hospitality sector of UK. Then Holistic hospitality
approach is smartly making place in the UK hospitality sector. Some current trends are as-
UK is now 7th biggest destination for tourism (Hsiao and Shiu, 2019) At the same time more
than 37.9 million visitors made their entry in the year 2018. it shows that the sector is having
positive trends. If talk about the revenue collected in the year 2017 so it has been
approximately 24.56 billion pounds.
More than 54% spendings came to only London which shows that there is favourable
potential trends for the city to grab bigger market share. The market growth is also looking
quite good yet there is need to work upon. If compares it with other nations then in UK it is
now 37.7 million the number of visitors. It is 86.9 million in France, 81.8 million in Spain,
75.9 million in United States. So it is showing that there is great potential to grab bigger
market share and reflecting higher competitiveness to these nations (Buckley and Casson,
2019)
With this regard the role of external factors may be drastic in nature. Factors like
Political stands may affect development of business. For example- In 2016 Brexit came into
existence, it not only affected relationship between UK and EU nations but brought severe

challenges for hospitality sector. Now the organizations are not much free to run their
business freely in EU nations. Considering the trends above EU is offering great market to
this industry so it can be concluded that by making this action politics drove serious challenge
before hospitality sector (Ceil, 2018)
The economic factors would be making changes in these trends. From last 2-3 years
the world economy is going through its toughest phase. It has experienced Covid-19 and
global supply chain failure so it can be said that considering the prevailing circumstances that
the markets will be showing positive growth and it will change even labour market dynamics
too.
For example- In the year 2019 the GDP was facing jeopardies but in the year 2021 it
is around 7.4% so more job generations can be expected. It would somehow reflect positives
to labour market and ultimately hospitality sector too. So altogether it can be concluded that
external factors may impact these prevailing trends in both positive and negative direction
(Williams, 2021)
CONCLUSION
Form the report above it can be summarized that the hospitality sector of UK is
thriving with greater rate. The report has presented a good evaluation of roles played in
hospitality sector along with existing gapes and their impacts on the sector, it was
substantiated suggesting some valid solutions. For presenting a proper picture that how the
sector was working Hilton Group has been taken which is engaged in hospitality business.
In the report for analysing external environment analysis some analysis were made
using PESTEL and SWOT models. Then their impact on the development of the sector was
articulated using some examples. At the end of report, a critical evaluation was made on the
impacts of these external factors and their impacts on potential and current trends of the
sector.

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