Contemporary Hospitality Industry

This report explores the different types of businesses within the hospitality industry and the products and services they offer. It also discusses the operational and functional departments in the industry. The report examines the direct and indirect impacts of the hospitality industry on the UK and global economies. It reviews the different operational roles and the skills required for these roles in the hospitality industry.

Contemporary Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of business within hospitality and products and services offered................3
P2 Range of operational and functional department...................................................................4
M1 Hotel Travelodge structure and interrelationships among different departments:...............5
P3 Direct and indirect impacts of hospitality industry on UK economy and other countries
also..............................................................................................................................................5
M2 & D1 Franchising and
licensing agreements
has influenced global development of hospitality industry ......................................................6
TASK 2............................................................................................................................................6
P4: Range of different operational roles within industry............................................................6
P5 Review the skills requirements for the roles mentioned above for hospitality industries.....7
TASK 3 ...........................................................................................................................................8
P6 Macro environment factors and their impacts on hospitality industry .................................8
P7 SWOT analysis of a hospitality organisation........................................................................9
TASK 4..........................................................................................................................................10
P8 Analysis the implication of current and potential trends affecting the hospitality industry in
UK.............................................................................................................................................10
Ability of Travelodge to
develop products and services that will meet current trends...................................................11
CONCLUSION.............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry is one of the fastest growing sector across the world in which a large
variety of customers are served with facilities as per their demand. In addition, it deals with a
large number of people in their daily operations who visits for accomplishing their personal or
professional purposes. Hospitality sector includes wide range of services like travel and tourism,
lodging, transportation etc. This report is based on an exhibition venue which is organised for
encouraging the school leavers for making their career in hospitality sector. Present report will
describe out different kind of businesses in hospitality industry along with diverse products and
services that are offered by them. In addition, contribution of hospitality industry in local,
national and global economies along with skills required for performing roles. At last, PESTLE
and SWOT analysis along with implications of current and potential trends in hospitality sector
will also described in this report.
TASK 1
P1 Different types of business within hospitality and products and services offered
Hospitality sector plays a very important role in growth and success of each nation
because it provides attractive services to travellers who comes from different nation so as to
spend their leisure time for feeling the beauty of another nation. However, it is also important for
organisations that are engaged in hospitality sector have to fulfil the needs and wants of
travellers and visitors because without satisfying needs any hospitality organisation can't gain
growth and success in marketplace. Several kind of business that are engaged in hospitality
sector along with products and services that they offered are discussed as below:
Lodging Accommodation: This sector comprises of luxurious hotel, resorts, camp-
grounds etc. that offers accommodation and food services to customers. In other words, this
sector is also considered as a wide sector of hospitality industry as it provides quality food and
accommodation services to visitors. Organisations of these sectors also provides quality and
effective services of food and lodging to their customers as per their needs so that size or scope
of organisation can be enhanced (Blanchard and Higgins-Desbiolles, 2013).
Food and Beverage: This sector is mainly designed for serving the food demands of
travellers. There are several categories in it that are discussed as below:

 Quick Service Establishment: In it, quick services are offered to customers like drinks,
meals and snacks due to which it is also known as fast food cuisine that has a minimal
table services. Catering Businesses: This part of food and beverage sector provides its services in
special occasion like wedding, birthday parties etc. Full Service Restaurants: It offers fine dining with a large selection of food and
beverages with table services to customers so that visitors visits in these organisations
and feed the meal that have ordered by them on table.
Travel and Tourism: Size of this sector is wide in hospitality industry because it
provides airlines, cruise ships, trains, marine trips etc. to travellers. This sector is very important
because it not only provides travel and tourism services to visitors but also provides
accommodation and meal services to them (Dasgupta 2011).
Entertainment: This is also an important part of hospitality sector that offers marines,
games and sports to travellers for their leisure experience.
Time share- This sector of hospitality comprises of villas, convention and resorts in
which customers make bookings and reserve a place so as to spend their leisure time at specific
location for a short span of time period.
P2 Range of operational and functional department
In each organisation several departments are required so that each work or function
would be managed effectively that leads the firm towards achievement of its goals. Hospitality
sector also requires several divisions so that they performs their own work for achieving their
desired goals. These divisions are also important for smooth functioning of activities and
functions of Travelodge. Some of these divisions are given as below:
Operational Department: It is mainly related with designing and controlling of
business operations that also consists several divisions which are given as below: Front Office: This is the first division that is interacted with guests while visiting in
Travelodge hotel. It is also responsible for solving queries of guests and providing each
information to the travellers which is demanded by them. Front office cashier,
reservation desk, reception desk are working under this department. It handles all the
queries, cash records, room availability, check-in and check-out of guests etc.

 Housekeeping: This division also performs its duties under the operational department of
Travelodge whose main responsibility is to maintaining cleanliness in each and every
part of hotel so that guests does not feel embarrassed while staying in hotel.
Functional Department: Functional division of Travelodge consists several departments
like finance, HR etc. that performs their works ethically so that productivity and profitability of
Travelodge can be maintained in marketplace. Finance Department: This part of functional department have responsibility to manage
each income resource and expenses along with forming final accounts so that financial
stability of organisation can be identified effectively (Hall, 2013).
 HR Department: This department of Travelodge is responsible for hiring, training or
terminating the employees so that productivity or profitability of firm can be maintained
in marketplace.
M1 Hotel Travelodge structure and interrelationships among different departments:
Travelodge hotel follows hierarchical structure in their workplace in which management
have categorise all roles and responsibilities within several divisions like human resource,
marketing, reservation, front desk etc. as per their capabilities so that all functions can be
managed properly. Interrelation among different divisions of Travelodge are high as marketing
department of hotel conducts the market research and provide whole information like taste
preferences and basic needs of customers to several departments like reservation, front desk etc.
so that when the guests will enter in hotel premises then effective quality of service provide to
them.
P3 Direct and indirect impacts of hospitality industry on UK economy and other countries also
In current scenario, each hospitality organisation wants to cover more market share or
enhance their business operations rapidly which not only supports the growth and sustainability
of organisation but also makes positive impact on local, national or international economies
which is described as below:
Local economy- Through satisfying the needs and wants of large number of guests in a
shorter period of time Hospitality industries increasing the growth of economy at local level.
From the report of UK hospitality sector, It has been identified that hospitality industry not only
satisfying the needs of customers but also convince them to spend more for getting expensive

services so that it can be said that impact of Hospitality sector is high on the local economy as
compare to other sectors.
National economy- Hospitality industry is rapidly growing across the nation and
according to report this is the third largest sector in terms of employment provider. According
the report of ONS, Approximate 3 million jobs are provided by hospitality sector of UK to
societal individuals that defines contribution of Hospitality sector in increasing nation's economy
(McWha and et. al., 2016).
International economy- Several organisations are exist in UK that are providing their
services in more than one nation thus, also contributing in growth of global economies.
According to the report of ONS, around 700 million travellers have travelled in UK that have
raised the annual growth of nation up to 10%. By increasing opportunities in employment and
standard of living of people of UK. This will clearly shows that hospitality sector makes positive
impact on international economy.
M2 & D1 Franchising and licensing agreementshas influenced global development of
hospitality industry
According the report of ONS, More than 50000 employees are working currently in
hospitality industry of UK. Because of Hospitality industry, Multinational fast food chains like
McDonald's, Burger King, Pizza Hut have established their stores in form of franchising through
taking licenses from governmental authorities of UK that defines positive influences of
franchising and licensing for the global development of hospitality industry. After establishment
of these fast food chains employment opportunities are increased that shows positive
contribution of franchising and licensing programmes in enhancing economic worth of UK
nation.
TASK 2
P4: Range of different operational roles within industry
There are several departments are formed in each hospitality organisation so that every
functions can be managed or controlled effectively. Individuals who are working in these
operational divisions of hospitality organisations have to perform several roles like receptionist,
engineers, housekeeping etc. which are described in brief as under:

Role of room division manager: This individual has responsibility to guiding the
teammates who are performing their duties in housekeeping and front office. In addition, It also
coordinates with other divisions so that visitors get better services while staying within the hotel.
Role of room division manager is to managing accommodation and front desk services along
with solving queries of guests so that better relations will be build with the visitors.
Role of Receptionist: Individuals as receptionist have responsibility to making
registration of visitors along provide informations, room keys to them. In an hospitality firm,
receptionist have duty to coordinating with the housekeeping services so that cleanliness can be
maintained at front desk. It is important because receptionist is the person who firstly interact
with guests on the behalf of hotel. They also takes informations from the guests that are related
with their personal information, interested areas, purpose of coming etc. so that services can be
provided to them accordingly (Minca, and Oakes, 2012).
Role of Housekeeping: Individuals in Housekeeping department of a hospitality
organisation have responsibility to maintain cleanliness in rooms of guests along with each areas
of hotel so that better impression can be provided to visitors while staying in hotel.
P5 Review the skills requirements for the roles mentioned above for hospitality industries
There are several skills and capabilities that are essentially required by the several
individuals so as to performing their roles and responsibilities effectively. Some of these skills
are given as below:
Technical skills: These skills are important for each individuals to acquire who are
working within the hospitality organisation. In current scenario, each hospitality organisation is
providing training to their employees so that they can provide better services to guests through
using advanced tools and techniques. Therefore, it is very important for employees who are
working in hospitality organisation to grab knowledge regarding the use of technical equipments
so that through fulfilling needs of customers high growth can be achieved by firm in
marketplace. These skills are required by Receptionist of hospitality organisation because they
have to work on technical equipments like Computer, Scanner, Printer etc.
Management skills: Through acquiring these skills, Employees who are working within
different divisions of hospitality organisation will be able in managing the work and time
effectively. These skills also assists them in completing the given duties in given time-frame
which automatically leads the firm towards achievement of organisational goals. Acquiring of

these skills are beneficial as it ensures the satisfaction of customers from services that are
provided by hospitality organisation. These skills are needed by Room division manager because
they have to manage each task of front desk and housekeeping.
Communication skills: These skills are also essentially required because without good
communication skills employees will not able in providing required information to the guests.
Therefore, these skills should be acquired by each individual of hospitality organisation so that
any difficulty regarding customer's satisfaction not be faced by them in future (Chen, and Shen,
2012). These skills are essentially required by individuals who are working in housekeeping
department because they have to communicate with several departments for maintaining
cleanliness in each area of hotel.
Conclusion – From the above mentioned information, it has been concluded that there
are several kind of hospitality organisations that offers different kind of products and services to
the customers as per their needs and wants. Hospitality organisations also provides support in
growth and development of economy at local, national and international level.
TASK 3
P6 Macro environment factors and their impacts on hospitality industry
Political: These factors comprises of stability of government, labour laws etc. which can
impact the growth and sustainability of hospitality organisation in positive or negative manner.
Basis Travelodge Premier Inn
Positive VAT rates is 20% which is
stable from last 10 years that is
a positive sign for the growth
and development of hospitality
industry.
In UK, corporation tax was
reduced by Government of UK
nation that posses positive
impacts on the profitability of
firm.
Negative Whereas, tax rates in Spain are
24% which is higher than UK
so that management of
hospitality organisation like
Travelodge have to increase
their profitability in UK nation
Whereas, tax rate in Germany
nation is flexible due to which
company can't take growth or
success in market.

so as to reducing negative
impact of higher tax rates from
overall profitability.
Economical: It includes economic growth, inflation rates, per capital income, GDP etc.
positive and negative impact of this factor are given as below:
Basis Travelodge Premier Inn
Positive Whereas, several multinational
organisations like Hilton,
Marriott are establishing
within the hospitality sector of
UK that can be defined as a
positive sign of economical
aspect.
In UK, establishment of
multinational organisations
increases FDI of nation
because of which large number
of visitors are preferring to
visit in UK nation.
Negative After Brexit, UK's economic
conditions are not good due to
which travellers are not
preferring to going towards
hospitality organisations that
are situated in UK these
situations can also define as
negative impact of economical
factors on hospitality industry.
Due to Brexit, several skilled
and experienced employees of
organisation have left their job
that have posses adverse
impact on overall profitability
of organisation.
Social: It includes tradition, culture, taste and preferences of customers that can impact
positively or negatively on the hospitality industry and its performance.
Basis Travelodge Premier Inn
Positive for reducing this impact
hospitality organisations of
UK are providing effective
training to their employees so
Company perform several
activities such as discount
coupons, special package on
weekends etc. so as to

that through identifying needs
and wants of guests better
services can be provided to
them.
attracting customers.
Negative Demands and needs of
customers can be changed over
a time period that can impact
negatively on the working
performance and profitability
of hospitality organisations.
High investments are doing by
company for conducting these
activities that can become
negative aspect for overall
sales figures of organisation.
Technological: It includes advanced technological equipments that can impact on the
growth and functions of hospitality industry in adverse or favourable manner. (Moutinho and
Vargas-Sanchez, 2018).
Basis Travelodge Premier Inn
Positive If multinational organisations
like Hilton, Marriott etc. will
not use advanced equipments
like website booking, free
coupons etc. in their working
structure then it will prove
beneficial as it will provide
competitive edge to firm in
marketplace.
Company have adopted digital
systems such as bill desks, up-
gradation of systems that has
supported firm in raising their
sales figures in marketplace.
Negative As technology is considerably
increasing in each area of
world then hospitality
organisations like Travelodge
have duty to make some
effecive modifications such as
adoption of digital systems,
Competitors like Marriott,
Hilton have adopted several
systems such as advanced
booking systems, discount
coupons etc. that can provide
negative impact on the whole

methods such as social media
platform, digital marketing,
online booking etc. because
not using of these can
negatively influences on
overall profitability of firm.
revenues of firm.
Environmental: Government of UK have formed several laws regarding protection of
environment and natural resources that is impacting growth of hospitality industries in positive
or negative manner. For protecting environment,
Basis Travelodge Premier Inn
Positive Most of Hospitality
organisations of UK like
Travelodge have designed
their infrastructure with lush
green parks so that large
number of customers get
attracted towards their services
which can leads the industry
towards growth and
development.
Premier Inn is following
Environmental act, 2010 due
to which good brand image is
maintained by firm in
marketplace.
Negative Natural climacterics of UK
nation can changed over a time
period that can restrict the
visitors for visiting the tourist
places of nation.
Whereas, Premier Inn have not
followed the new green
legislation of UK that can
impact on their growth and
sustainability.
Legal: It includes health and safety, equality act etc. that can impact positively or
negatively on the hospitality organisations.
Basis Travelodge Premier Inn
Positive Through adhering all these Following of laws have made

laws and legislations
organisations that are engaged
in hospitality sector can
motivate their employees for
performing their duties in
effective manner.
good brand image of firm in
marketplace.
Negative Whereas, if these legislations
are not following by the
organisation then it
automatically impact on the
growth and success of
hospitality sector.
Due to changes in wages act,
2002 company have faced high
reduction in revenues of firm.
P7 SWOT analysis of a hospitality organisation
SWOT analysis is very important for each organisation of hospitality sector because it
not only helps them in determining their internal strength and weakness but also makes stronger
capability of them so that they can improve these weaknesses for grabbing future opportunities.
SWOT analysis of Travelodge is given as below:
Strengths Weakness
 Prices of offerings are affordable due to
which high customer base is maintained
by organisation.
 Organisation also offers loyalty card to
their customers so that discount on
booking can be taken by them.
 Most of rooms of Travelodge are not
well furnished that defines weaknesses
of organisation.
 Due to small rooms, Hotel is not able in
fulfilling needs of big families.
Threats Opportunities
 Hilton, Marriott are the huge
competitors that can provide threat for
the profitability of organisation.
 Organisation have opportunities in
making their expansion in other areas
of Europe.

 Demands and needs are changeable
according to time period that can also
become threat for growth and
sustainability of firm.
 Partnership with small players of
hospitality industry can increase the
market share and profitability of firm.
SWOT of Premier Inn
Strengths Weakness
 Strong presence in UK Market have
made good strength of firm in
hospitality industry.
 Company has established a very good
brand image through adopting several
services like Wi-Fi, amusement parks
etc.
 Issue of hygiene have reduce the sales
figures of firm.
 Limited global presence is the main
weakness of Premier Inn.
Threats Opportunities
 Competitors such as Marriott, Hilton
are providing same services in
affordable prices which can become
threat for customer base of
organisation.
 Presence of unhygienic in operations
company can face challenges in
reducing profitability or sales figures.
 Company can successfully established
their business in Germany.
 Design and Decor of organisation is
unique that can provide opportunity to
firm in raising its profitability and
market share.
Influence of SWOT in decision-making – Managment of Travelodge should make their
focus on market trends and needs of customers so that through providing services according to
needs of customers threat of reducing customer base can be removed. Along with it, organisation
should make effective modifications in rooms so that needs of customers can be fulfilled
effectively and any difficulty not be faced by them in decision-making (Hall and Gössling,
2013).

Apart from that, it is also very important for management of Premier INN to track these
changes effectively as it can affect their growth and sustainability in negative manner.
Weaknesses such as presence of unhygienic can restrict the growth of firm therefore, it is
important for the managers to make effective policies or strategies so that profitability and
customer base of firm can be maintained in marketplace.
Factors that are affecting supply and demand of Travelodge – Supply of materials are very
high at the workplace but demands are considerably decreasing which have created loss figures
of company in market. In these cases, company's sales figures will be affected negatively which
should be overcome by the organisation in effective manner.
Factors that are affecting supply and demand of Premier Inn – Demand and supply of the
products at the workplace of firm are balanced effectively but other branches of hotel are facing
issues of lower supply chain systems so that company have to consider these factors that can
affect on their overall profitability of firm.
Trend 1 advanced technological systems are adopted by the organisations effectively which are
increasing growth and sustainability of firm in positive manner.
Trend 2 Customers are preferring traveling services due to interest in exploring knowledge about
the more place and the culture. This increasing trend is encouraging the organisation to make
adoption accordingly so that growth and profitability can be gained in marketplace.
Trend 3 College students and group of friends are highly prefering accommodation services of
different hotels so that each hospitality organisation have to consider these trends effectively so
that growth and success can be maintained in market.
Trend evaluator – From the above discussed trends, it has been evaluated that growing trends
will pose positive impact on the growth of hospitality industry. It will indirectly leads the
economic development in nation which makes automatically growth and sustainability of nation
across the world.

TASK 4
P8 Analysis the implication of current and potential trends affecting the hospitality industry in
UK
There are several current and potential trends that can be occurred in hospitality industry
explanation of these trends are given as below:
Current trend Internet services - With the help of internet services, Hospitality organisations are
providing effective services to customers such as visitors can easily take review and
facilities of hotel before booking. This services are also comes under the current trend
because in current era of hospitality industries, customers pre check the viability and
facilities of organisation.
 Tech explosion: Most of the visitors are tech savvy in nature as they do not want to
disturb any individual of hospitality organisation for fulfilling their needs. Therefore,
current trend of hospitality organisations are related with Tech Explosion in which user
friendly experience is provided by them to the customers.
Future trends Direct Booking – In future, Hospitality organisations like Travelodge can provide direct
booking option to their customers as it will beneficial for the organisation in managing
income and expenditure.
 Tracking facilities – It can also taken as an example of future trends that can be grabbed
by hospitality organisations like Travelodge in future as through it they will be able in
tracking the location of guests while providing them tourism services.
Ability of Travelodge to develop products and services that will meet current trends
Management of travelodge have to make several modifications in their working such as
for adopting current trends in their workplace. Modifications are given as below:
 Providing training and rewards – In it, management of Travelodge have to provide
better training and learning programmes to their employees so that modifications
regarding current change can be adopted effectively.
 Monitoring performance level of employees – In this, Management of firm should
track performance of their employees on each functions so that employees will provide

better support in adopting current changes in future period of time (Jones,Hillier,and
Comfort, 2016).
CONCLUSION
From the above discussed report, it has been concluded that hospitality organisation is
rapidly growing across the world and several trends are present in market. Lots of opportunities
are available in market that can provide growth and sustainability to the hospitality organisation
but they have to make several changes in their workplace for grabbing these. For identifying
external factors and their impacts organisations of hospitality industry have to conduct Pestle
analysis that will define effective measures which can be taken by them for future growth and
sustainability.

REFERENCES
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Online
ECONOMIC CONTRIBUTION OF THE UK HOSPITALITY INDUSTRY, 2018. [Online].
Available through: <https://www.ukhospitality.org.uk/>.
Hospitality Industry Pestle Analysis. 2018. [Online]. Available through:
<https://www.cheshnotes.com/2017/03/hospitality-industry-pestel-analysis/>.

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