Exploring the Contemporary Hospitality Industry: Businesses, Departments, and Economic Contributions

This report explores the different types of businesses and departments in the contemporary hospitality industry, including food service, travel and transportation, events, lodging, and recreation. It also discusses the economic contributions of the industry on local, national, and global scales. Additionally, the report covers the operational and functional departments present in the industry, such as food production, food and beverage service, housekeeping, HR, sales and marketing, and accounting and finance.

Unit 1 The
Contemporary
Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Exploration of different businesses within the hospitality industry along with the commodities
provided by them ........................................................................................................................1
Discussion on the contribution of hospitality industry on local, national and global economic
scale.............................................................................................................................................3
Operational and functional departments present in the hospitality industry ..............................5
Operational roles needed in the hospitality industry ..................................................................7
Examination of the skills currently needed for the roles within the hospitality industry and the
skills shortage .............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
At the core of the hospital industry, different business activities are conducted in order to
assist in the well-being of the consumer and maximise consumer satisfaction (Chan, 2019)
(Franco and et. al., 2020). This report is based on the four star Pullman Liverpool Hotel which is
located in Kings Deck Liverpool. The Hotel Offers bright and luxurious accommodation for
consumers along with other amenities such as parking, Wi-Fi connection and Fitness Lounge
(Pullman Liverpool Hotel, 2019). This report looks at different types of business in the
hospitality industry as well as the services offered by them. The contribution of the hospitality
industry to regional, national and global economy is discussed in this report. Operational
departments, functional departments and operational roles needed in the hospitality industry are
also given in this report. Apart from this, the current skills required in the hospitality industry
and skills shortage are examined in this report.
MAIN BODY
Exploration of different businesses within the hospitality industry along with the commodities
provided by them Food Service: This business type in the hospitality industry involves delivering food and
beverages to their consumers on specific locations which is also referred to as on premise
food and beverage business such as Hotels, MoD, restaurants, Night Clubs, Casinos, bars
etc. Apart from this food is also delivered by food service business on location intended
by the consumer which includes catering services deliver food and beverages to the
location specified by the consumer. Food service businesses are also referred to as hidden
side of the hospitality industry as it includes large number of variants. Travel and Transportation: This business included in the travel and transportation
category are highly essential for the hospitality industry as they facilitate movement of
guests and consumers to other business of the hospitality industry (Gardini, 2018). The
service provided by the transportation and travel businesses includes carrying guests to
actual site where the hospitality services are performed such as events, Hotels,
restaurants, clubs and exhibitions. The services offered by this business type include
railway, road, water and air passenger transport services along with transport equipment
rental services. This business category of the hospitality industry includes large number
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of businesses including, airlines, air safety businesses, taxis, car rentals, cruise ships etc.
which makes it one of the diverse business categories in the hospitality industry. Events: Conferences and events are a significant part of the hospitality industry and are
continuing to grow. The services of offered by event businesses in the hospitality industry
includes conducting different types of events such as meetings, incentives, conferences,
exhibitions, weddings, festivals, concerts etc. This business category is one of the most
profitable sections of the hospitality industry because different types of events are held
throughout the year which provides regular income for firms involved in event
management (MUSYOKI, BOR and TANUI, 2017). Lodging: This business type involves accommodation service providers who
accommodate clients upon payment. The services offered by lodging and accommodation
services include providing a place to stay at basic level and similar to the food service
businesses lodging businesses also have different levels. According to quality there are
different levels of lodging services including Dormitories, Halls of residence, Bed and
Breakfast, Guest Houses, 1-star Hotels, 2-star Hotels and so on. The range of services
offered at the lodging business depends on the quality level of the business. A four-star
Hotel offers wide range of services including dining services, parking services, fitness
and well-being services. On the other hand, a Bed and breakfast will offer limited
services including accommodation and breakfast dining. The primary income generator
for lodging businesses is accommodation while food and other services act as supplement
income source. Apart from this room share businesses such as Airbnb and Couch-Surf are
also part of this business category of the hospitality industry. This is because they fulfil
the main essence (Hassanien and Dale, 2019).
 Recreation: The business in the hospitality industry which offer services for the health
and well-being of the consumers are included in this category of hospitality sector
businesses. The primary aim of businesses included in this sector is to offer the
consumers refreshment and relaxation. Spa, Wellness facilities, fitness centres are part of
this business. In addition to this places of special interest such as Zoos, museums and
spectator sports are also categorized as recreation business as leisure activities are also
referred to as recreational activities.
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Discussion on the contribution of hospitality industry on local, national and global economic
scale
Economic contribution of Hospitality industry on local scale
On a local scale the hospitality industry plays a vital role in developing regional
economies. In case of London, the city gains positive economic benefits from the thriving
hospitality industry. The hospitality industry generates high income for London which is
depicted by the average room rate for London in the year 2018 was 180 GBP while the
occupancy rate for the same year was 84%. This showcases the high demand for hospitality
services in London which provides positive economic benefits on local level through income
generation for many London residents and adequate taxation for the government. In addition to
this the revenue available room in case of London was 124 great British pound in the year 2018
which made the city the highest contributor to the hospitality industry in UK. Apart from this the
continuous growth of the hospitality industry in London acts as as source for employment
generation (Mara, Govender and Makka, 2021). London is globally popular tourism destination
which has accelerated the growth of the hospitality industry. There are more than 88 Hotel
projects being under construction in London and more than 16,000 rooms will be further added
to the supply chain by both international and domestic brands (HOSPITALITY INDUSTRY IN
THE UNITED KINGDOM - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS
(2021 – 2026), 2021). This showcases the large amount of global investment attracted b the
Hospitality industry to London. In this way the hospitality industry makes beneficial economic
contribution to local economies by brining international investment. This investment will
develop local infrastructure in London and help enhance lifestyle of local residents as the newly
built hospitality projects will also cater needs of domestic consumers
Economic contribution of the hospitality industry on national scale
The hospitality industry also provides economic benefits on a national scale to the UK
economy. After the pandemic the economic growth of UK in the second quarter of 2021 by
4.8%. The hospitality industry of played an important part in economic growth after the
pandemic as it was responsible for 40% of economic progress of the national economy during
this time period. In addition to this, another positive economic contribution of the Hospitality
industry in the UK economy is that is is the largest private sector employer in UK. The
hospitality sector represents 10% of employment, 6% of business and 5% of GDP (Latest GDP
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figures highlight the importance of hospitality in aiding economic recovery, 2021). This
showcases the significant value of the hospitality industry for the progress and stability of the
UK economy. The well-being of the hospitality industry helped in recovering the UK economy
from the negative impact of pandemic. It is essential for the government to take measures to
ensure that the hospitality industry is thriving and growing post pandemic as it is one of the
biggest contributors to the national GDP and a primary source of generating employment for UK
residents.
Economic contribution of the hospitality industry on national scale
The Hospitality industry also makes positive impact on international economy. As per the
world tourism council the hospitality industry is considered main driver in global value creation.
An international contribution of 6.38 trillion Great British Pounds to the global economy was
made by the hospitality industry in the year 2018. This represents 10.4% of the total global GDP
(Hospitality Industry: All Your Questions Answered, 2020). The importance of the hospitality
industry to global economy is showcased in such numbers as it is significant part of global GDP
and facilitates economic growth in any regions. In addition to this the global hospitality industry
helps in movement of capital from developed economies to developing economies as tourism
flourishes in the developing regions. This also positively impacts the global economy as it helps
in equal progress of developing and underdeveloped regions across the globe. In terms of
employment creation, the hospitality industry is one of the largest employers on a global scale.
319 million individuals earned their living through the hospitality industry in the year 2018. The
latest data showcases that the number of individuals employed by the hospitality industry on a
global scale equals t 173 million people. This shows that the hospitality industry positively
contributes to the global GDP through employment generation and value creation. The growth
rate of the global hospitality industry is more in comparison to the international growth rate. In
the year 2018 travel and tourism industry which is also a part of the global hospitality industry
was 3.9% which was higher than the overall growth in the global; economy in the same year.
This depicts the global hospitality industry will grow at better rate in comparison to global
economy and steps need to e taken to ensure growth of the industry so that it positively affects
the global economic growth.
Operational and functional departments present in the hospitality industry
Operational departments within the hospitality industry
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 Food Production Department: This department is also referred to as the kitchen
department. The main responsibility of this department is to prepare culinary products for
the guests. The significant job roles working in the food production department of a
hospitality firm are Executive chef. Sous Chef, Commis Chef, Kitchen Porter,
Dishwasher and Kitchen manager (Nusair, Butt and Nikhashemi, 2019). Every employee
in this department works in a co-ordinated manner to offer delicious and freshly cooked
meals to every guest using the dining services of the Hotel. In case of the Pullman
Liverpool Hotel, the restaurant at the Hotel offers breakfast, lunch, afternoon tea and
evening meals to the Hotel guests. The Food production department at the works
continuously to provide guests at the restaurant and Hotel guests appetizing meals. The
food production department at the respective Hotel is expert in preparing traditional
English and Continental cuisines perfectly. Food and Beverage Service Department: The task of preparing fresh meals for the Hotel
guests is under the responsibility of food production department while the responsibility
of transporting the prepared meals to the guests is given to the food and beverage service
departments. This department overlooks the service of food and drinks to the consumers
and ensures that waiting staff delivers the prepared meals to the gussets according to their
demand in a hospitable manner. This involves taking the prepared meals to the guest’s
tables, to their accommodation at the establishment or any external place intended by the
guest. Pullman Liverpool Hotel has created talented food and beverage service
department filled with highly trained staff who understand how to effectively deliver food
and beverage items to the gussets quickly so that the food is freshly served so the guests.
 Housekeeping Department: This operational hospitality department is one of the most
important departments of a hospitality organization. The housekeeping department is
given the responsibility of maintaining cleanliness in the establishment including guest
rooms, common areas, lobbies, hallways, restrooms and other public areas of the
establishment (Park, Chae and Kwon, 2018). After a guest checks out from the
establishment the housekeeping department thoroughly cleans their room so that it is
ready to be occupied by the next guest. In addition to this the housekeeping department
also ensures that the aesthetic of various areas of the establishment is maintained at all
times. This is an important department as effective upkeep and cleanliness of the
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establishment is a main requirement for improving guest satisfaction and plays an
important role in retaining visitors to the hospitality firm. The Housekeeping department
at the Pullman Liverpool Hotel ensures that the Hotel maintains high standards of
cleanliness and guests do not face any inconvenience related to Hotel Hygiene and
cleanliness.
Functional departments within the hospitality industry HR Department: This functional department of Hospitality establishment is tasked with
acquiring, developing and retaining skilled staff at every position of the company (Park
and Min, 2020). In addition to this, ensuring effective communication between different
departments, maintaining transparency and impartial administration of justice are some
other responsibilities of HR department at Hospitality firm. The Pullman Liverpool Hotel
has created an effective HR department which helps the company create skilled
workforce and perform various HR administrative duties. Sales and Marketing Department: This functional department focuses on conducting
successfully marketing campaigns and increase sale of the company. In the current digital
age there are various channels through which consumers can interact with hospitality
firms which includes social media, website, travel agents, OTA etc. This has increases
the complexity and importance of marketing and sales department in effectively interact
with consumers to provide the hospitality fir competitive advantage. The sales and
marketing department at Pullman Liverpool Hotel seeks to gain competitive advantage in
their industry by providing seamless experience through effective usage of various sales
channels.
 Accounting and Finance Department: The main role of this department in hospitality
organizations is to maintain detailed record of various financial transactions (Sadik and
Alhassan, 2021). Other important tasks conducted by finance and accounting department
in Hospitality firms is invoicing consumers, overseeing accounts receivable and
collections, accounts reconciliation, payables processing, budgeting, financial analysis
and completing financial reporting periodically. In context of the Pullman Liverpool
Hotel the finance and accounting department performs various responsibilities effectively
so that the financial health of the establishment is always good.
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Operational roles needed in the hospitality industry
 Executive Chef: This operational role works in the food production department and
handles the daily operations of the food production department. This is managerial level
position in which the individual has to supervise various subordinates in the food
production department such as sous chefs, cooks and Porters (Sertel, 2017). The Pullman
Liverpool Hotel has hired trained and highly experienced chef who supervises various
activities of the food preparation department. The extinctive chef at The Liverpool
Pullman Hotel ensures that food is prepared in hygienic manner and served freshly to the
guest according to their demands in a timely manner. This is beneficial for the respective
firm as it helps gain supplement income from the sale of food and beverage products.
 Front Office manager: This job role is tasked with making managerial decisions related
to the front desk of a hospitality establishment. This is highly important job role as the
front desk is the first place at which consumers interact with the hospitality
establishment. The primary responsibilities of the front office manager are to ensure that
housekeeping and aesthetic standards of the Hotel are met, skilled staff is hired in the
front office department, make decisions about room rates budget allocations sales targets
etc. The front office manager at the Pullman Hotel ensures that the initial experience of
the guests is satisfactory by supervising housekeeping and aesthetic upkeep, resolves
guest queries and maintains cordial relationship with each guests. This helps the
establishment increase consumer retention.
 Concierge: The concierge performs a variety of duties which are mainly related to
providing assistance to the guests. The concierge help guests complete various tasks such
as make restaurant reservations, arrange for transportation, recommend travelling spots,
booking transportation and co-ordinating porter service (Martínez and Nishiyama, 2019).
The Pullman Liverpool Hotel has hired rained concierges who handle various consumer
demands in a hospitable manner so that they exceed consumer expectations by making
guests visit more enjoyable. This job role is important for the respective Hotel as it plays
an important part in improving consumer satisfaction
 Executive Housekeeper: This is another managerial level job role which focuses on
managing housekeep operations and supervising the staff of Housekeeping department.
The main role of the housekeeping executive is to co-ordinate between housekeeping
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crews to inspect assigned areas so that cleanliness and aesthetic upkeep standards are
met. The housekeeper executive at The Liverpool Pullman Hotel ensures smooth
functioning of the housekeeping department all year round so that the five-star rating of
the Hotel is maintained in terms of cleanliness and aesthetic beauty. This job role
provides various advantages to the respective establishment. This is because cleanliness
is one of the main essential factors for maintaining guest satisfaction.
Examination of the skills currently needed for the roles within the hospitality industry and the
skills shortage
Skills currently needed in the hospitality industry Interpersonal skills: This is an essential skill which is needed for several operational
roles within the hospitality industry (Moreo, Green and O'Halloran, 2018). This is
because completion of responsibilities of operational roles requires dealing with people
which are either consumers or subordinates employees. This skill is needed for the the
job role of executive chef and executive housekeeper as it involves supervising staff and
interpersonal skills can help effectively interact with juniors to perform various functions.
The operational roles of concierge and front office manager also need this skill in order to
deal with various guests. The Pullman Liverpool Hotel neds to develop effective
interpersonal skill in their employees in order to satisfy consumers and ensure perfect
coordination of staff.
 Multitasking: This is another important skill needed in the Hospitality industry as many
of the operational roles of involve completing different tasks at the same time. Effective
multitasking skills helps employees in hospitality industries handle multiple situations
and guests at the same time without negatively impacting on the guest service (Li and
Xie, 2021). The Pullman Liverpool Hotel neds to develop this skill in their employees so
that they are able to handle various tasks during peak Holiday seasons for efficient
functioning of the establishment.
Skills shortage Trade specific skills: Trade specific skills such as bar tending skills, the skill to prepare
specific cuisine perfectly, barista skills are needed in the hospitality industry to fill
various specific operational roles. The reason behind shortage of this skill is lack of
educational institutions who teach such trade specific expertise. In addition to this labour
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shortage in UK because of reconstruction on EU labour movement by Brexit have led to
shortage of highly skilled employees in trade specific activities. The Pullman Liverpool
Hotel neds to attract and retain employees with trade specific skills to give their
establishment competitive advantage.
 IT skills: Employees in hospitality industry do not have latest knowledge about digital
and IT technology (Self, Gordon and Jolly, 2019). This skill need to be improved so that
digital technology can be adopted easily by hospitality establishment. The Liverpool
Pullman Hotel needs to develop IT skills in every member of their workforce so that they
are able to utilize digital technology for improving consumer experience. In addition to
this the firm will also be prepared for heavily digitized future.
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CONCLUSION
From the above report it is determined that there are different types of business within the
hospitality industry. This includes lodging businesses, travel and transportation firms event
firms, recreation firms and food service establishment. These business offers different types of
services and depicts the diversity of the hospitality industry. The hospitality industry positively
impacts the regional, global and national economies. The operational departments of the
hospitality industry include the food production department, food and beverage service
department and the housekeeping department. The functional department of the hospitality
industry are HR department, marketing and sales department and finance and accounting
department. Some of the operational job roles in the hospitality industry are executive chef,
concierge, front office manager and executive housekeeper.
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REFERENCES
Books and Journals
Chan, S. C., 2019. The antecedents of workplace fun in the hospitality industry: A qualitative
study. Journal of Human Resources in Hospitality & Tourism, 18(4). pp.425-440.
Franco and et. al., 2020. Are you good enough? CSR, quality management and corporate
financial performance in the hospitality industry. International Journal of Hospitality
Management, 88. p.102395.
Gardini, M. A., 2018. Academia versus practice? Toward a debate on the value of academic
education in the German-speaking hospitality industry. Journal of Hospitality &
Tourism Education, 30(4). pp.250-256.
MUSYOKI, J., BOR, T. and TANUI, T. A., 2017. EFFECTS OF KNOWLEDGE
MANAGEMENT FACILITATORS AND MECHANISMS ON ORGANIZATIONAL
PERFORMANCE IN THE HOSPITALITY INDUSTRY. CLEAR International Journal
of Research in Commerce & Management, 8(11).
Hassanien, A. and Dale, C., 2019. Hospitality business development. Routledge.
Mara, C., Govender, C. and Makka, A., 2021. Contribution of Human Capital Development
(Hcd) to Organisational Effectiveness in the Southern African Hospitality
Industry. African Journal of Business and Economic Research, 16(3). pp.195-214.
Martínez, P. and Nishiyama, N., 2019. Enhancing customer-based brand equity through CSR in
the hospitality sector. International Journal of Hospitality & Tourism
Administration, 20(3). pp.329-353.
Nusair, K., Butt, I. and Nikhashemi, S. R., 2019. A bibliometric analysis of social media in
hospitality and tourism research. International Journal of Contemporary Hospitality
Management.
Moreo, A., Green, A .J. and O'Halloran, R., 2018. What certifications are important in the
hospitality industry?. Journal of Human Resources in Hospitality & Tourism, 17(1).
pp.121-135.
Li, D. and Xie, L., 2021. Country-of-origin cues: effects of country-related affect and product
association on consumer responses to hospitality firms. International Journal of
Contemporary Hospitality Management.'
Self, T. T., Gordon, S. and Jolly, P. M., 2019. Talent management: A Delphi study of assessing
and developing GenZ hospitality leaders. International Journal of Contemporary
Hospitality Management.
Park, E. O., Chae, B. and Kwon, J., 2018. Toward understanding the topical structure of
hospitality literature: Applying machine learning and traditional statistics. International
Journal of Contemporary Hospitality Management.
Park, J. and Min, H. K., 2020. Turnover intention in the hospitality industry: a meta-
analysis. International Journal of Hospitality Management, 90. p.102599.
Sadik, A. and Alhassan, F., 2021. The Hospitality Industry and the Comfort of Customers: The
Case Study of Airport Inn Hotel (AIH) In Tamale. European Journal of Hospitality and
Tourism Research, 9(3). pp.1-13.
Sertel, E., 2017. Customer Satisfaction, Loyalty, and Financial Performance in the Tourism and
Hospitality Industry: Evidence from North Cyprus. International Journal of Economic
Perspectives, 11(4).
Online
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Latest GDP figures highlight the importance of hospitality in aiding economic recovery, 2021.
[Online] Available through <https://www.thedrinksbusiness.com/2021/08/latest-gdp-
figures-highlight-the-importance-of-hospitality-in-aiding-economic-recovery/>
HOSPITALITY INDUSTRY IN THE UNITED KINGDOM - GROWTH, TRENDS, COVID-19
IMPACT, AND FORECASTS (2021 – 2026), 2021. [Online] Available through
<https://www.mordorintelligence.com/industry-reports/hospitality-industry-in-the-
united-kingdom>
Hospitality Industry: All Your Questions Answered, 2020. [Online] Available through
<https://hospitalityinsights.ehl.edu/hospitality-industry>
Pullman Liverpool Hotel, 2019. [Online] Available through
<https://all.accor.com/hotel/9227/index.en.shtml>
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