Contemporary Hospitality Industry: Types of Business and Products

This report explores the different types of businesses and products in the contemporary hospitality industry, focusing on The Connaught hotel in London. It discusses operational and functional sectors, their interrelationships, and their contribution to local, national, and international economies. It also examines the use of licensing and franchising in economic growth, the range of operational roles within the industry, the required skills for these roles, and the skill gaps that exist.

Contemporary
hospitality industry

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Numerous types of business in hospitality industry and diverse products which they offer....................3
Evaluation of functional and operational sectors within the selected business........................................4
Contribution of the hospitality sector to local, national and international economies..............................5
Interrelationships of functional and operational units within an organization..........................................5
Examine how the use of licensing and franchising contributed to the economic growth.........................6
How global growth, licensing and franchising have contributed to the economic worth.........................6
Range of different operational roles within the hospitality sector............................................................7
Skills required for the roles within hospitality sector...............................................................................7
Skill gaps within hospitality sector in relation with different operational roles.......................................8
Impact that skill gaps have on hospitality business and valid solutions...................................................8
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
There are various types of corporations like small, medium and large within the business
organization. There are different services which a hospitality industry provides like travel and
tourism, lodging facilities and many more. The main objective of the industry is to offer
customers with an amazing experience whether in case of good food, best spa and so on. The
below report is based on The Connaught hotel (Reis and et.al, 2020). It is a five star luxurious
restaurant located in London. It provides numerous kinds of services like event planning and so
on. The report includes various types of business within hospitality sector, series of operational
and functional departments, contribution in context with local, national and international
economies, interrelationships, use of franchising and licensing agreements, different operational
roles, and skills required for all roles, skill gaps within hospitality and the impact.
MAIN BODY
Numerous types of business in hospitality industry and diverse products which they offer
In relation with hospitality industry there are different methods of services and products
through which all organizational activities are being carried out and besides this they also get
indulged with all the customers accordingly. In context with the selected hotel they offer various
kinds of products and services which are further been explained as below: -
 Suits: - In terms of hotel industry they provide suites which are also deliberated as a part
of accommodation services but they involve high range of luxury conveniences. For
example there are various luxury hotels which provide these services like Hell bay hotel,
Ritz and so on.
 Resorts: - They are considered as those services which offer different types of products to
audiences like food and beverages, fun activities and many more.
 Accommodation: - It refers to a type of service which is provided by hospitality sector
for those consumers who travel from one place to another and explore different locations
to stay (Njoroge and et.al, 2020). These services are provided by The Connaught hotel
across various international cities.
 Beach resorts: - It is defined as a service which provides holiday lodging facilities,
seaside views, artificial swimming pools and many more. Through this all tourists get
attracted and indulge with the beach resort.
 Hotels: - In accordance with the hospitality sector it involves hotel enterprises also that
offer assorted products and services in accordance with the demands of consumers. For
example, hotel rooms, decoration and so on.
 Motels: - It is designed within a single building only and has attached rooms with each
other with CCTV cameras, small common area.

 Ski resort: - As the time period is getting changed the services of hotels are also getting
changed in which the ski resort is involved which is mainly the winter sports facility,
snowboarding and many more.
 Pubs: - It is defined as a place in which all the people enjoy with loud music, food and
beverages and besides this also love to dance with each other.
Food and beverages in hospitality industry: -
It is defined as one of the largest sector within hospitality which involves different
methods. There are numerous types of services like in terms of exclusive preparation of food, its
presentation and many more (Tews and et.al, 2020). There are various organizations which
provide these services like Burger King, McDonald’s and so on.
Evaluation of functional and operational sectors within the selected business
Operational departments: - In relation with these departments the main focus is on
operation and task activities of businesses. In accordance with The Connaught hotel, they have
different operation divisions which are being explained as below: -
 Housekeeping branch: - They have the liability of maintaining and managing each room
properly cleaned. Besides this they also have the responsibility of keeping all the
important details of room up to date.
 Front desk department: - They are indulged into provide efficient level of
communication to each tourist and guest. They have the responsibility of handling all the
room bookings and other significant services.
Functional departments: - It refers to those sectors which are involved into the central
functioning of hotel organizations and also responsible to enhance the productivity of a business.
 IT department: - It is defined as that sector in which the responsibility is to protect
effective security and privacy of hotel and also guests through secured level of network
(Ivkov and et.al, 2020). In context with the selected hotel they have skilled and talented
employees who achieve all their roles.
 Human resource department: - The main task is to hire and recruit talented people
within an organization who have the capability of providing advantages to hotel.
 Maintenance: - It is the most essential function in hospitality in which the maintenance
of tools and techniques with regards to whether they are working in proper condition or
not.
Interrelationship between different operational and functional departments: -
 HR and IT departments: - It is defined as a function department and indulged with each
other and the reason behind this is that the responsibility of IT department is maintaining
as well as managing all software techniques which are used by hospitality sector within

whole management department and in relation with Human resource to make certain
plans and policies.
 Front desk and housekeeping: - These departments are interconnected with each other
because the partners of housekeeping offer all kind of essential data and communicate
this to front office staff members in terms of what are the facilities which are needed to
get updated.
Contribution of the hospitality sector to local, national and international economies
It is necessary to have proper alertness in terms of the implication of hotel industry
economy of a country so that it becomes easy to initiate different strategies and certain
recommendations accurately. In context with the proper market and social analysis it is being
explained as below: -
 National economies: - In context with hospitality sector they has built up a main
contribution to national economy of United Kingdom and the reason behind this is that
around more than 800 organizations are involved and interrelated with hotel sector and
the UK national economy comprises of 5% of GDP in terms of this sector (Rivera,
Casadesús Fa and Villar, 2021). Furthermore, with regards to the selected hotel they also
offer and give tax economy at large variation that ultimately leads to high level growth as
well as development.
 Local economies: - With respect to hotel industry they offer effective contribution to all
the local economies because the engagement of tourists leads to high job opportunities
and enhance the awareness which is efficient and beneficial in terms of economic
development.
 International economies: - In relation with these economies they come under the
category that carries on all activities within foreign on multinational basis. As per the
changing demands of consumers they provide unique products to all the audiences that
lead to high standard of living at large scale. Besides this, the contribution of hospitality
sector with regards to international economy is also rising. The main influence of these
industries is to expand their organizations at global level by implementing different
strategies like licensing; franchising that also helps in improving the economy level at
large scale.
Interrelationships of functional and operational units within an organization
In terms of functional and operational units within the hospitality sector they both are
interconnected with each other because they work within similar field and have same aim with
respect to particular time period (Giousmpasoglou, Marinakou and Zopiatis, 2021). In context
with The Connaught hotel, they have various operational and functional units.
 IT and Human Resource: - It is defined as a functional unit of selected hotel whose main
focus is on using and securing all the data in appropriate way of customers, guests as well
as staff members.

 Front office and housekeeping: - They are interrelated with each other and are reflected
under operations department because both front office and housekeeping works with
efficient level of interaction and the responsibility of front office is to provide orders to
housekeeping and in terms of housekeeping they have the liability of providing the
essential data to front office.
Examine how the use of licensing and franchising contributed to the economic growth
There are various types of marketing entry approaches which create a deep impact in
terms of global development of hospitality industry since with the help of all the approaches they
built up the capability of implementing different business activities. It is further being described
as below: -
 Licensing: - It is defined as a kind of contract which is considered as a procedure in
which the corporation permits other organization to use their license for particular time
period and besides this use all the rational property rights (Teng and Cheng, 2020). It
also creates an effect upon global development because the Connaught Hotel uses the
licensing settlement on the basis of which they are able to enhance their business
operations and also raises the goodwill of company into multinational countries.
 Franchising: - It refers to a form of distribution procedure and market entry strategy
which is used by business and the franchiser grants approval to franchise and use their
brand name within their country. The approval creates a direct impact on global
development of hospitality organization because when the process is measured by
business it influences the impact on market place and stakeholders.
From the above information, both licensing and franchising contract have an influence on
global development and the reason is that they are almost used by hotels to enhance the
business activities and manage their resources and operations in efficient way.
How global growth, licensing and franchising have contributed to the economic worth
Contribution: - Both licensing and franchising are significant in order to improve and
develop the economy in terms of hospitality industry because they help in offering the execution
of all necessary business activities in efficient way by following legal and ethical process. It is
further been explained below: -
 Licensing: - They provide a foremost contribution in hotel sector because the aspect of
licensing is used by them and with respect to this it directly creates an influence on the
development of economy as the government services are required to make market entry
strategy that also result in implementing a positive relationship with regards to
government association ( Liu and et.al, 2020). It also leads to the contribution to
economic phase because it improves the standard of living of all the people.
 Franchising: - It is a significant part of hospitality industry because it provides an
economic output of 1.6 trillion across whole globe. It is been evaluated that in hotel

sector franchising is very important as it provides benefits to both market as well as
business at large scale. For example, the hotel which adopts franchising as a market entry
strategy it has the capability of producing more data and employment chances to small
and medium corporations.
Range of different operational roles within the hospitality sector
There are different ranges of operational roles within the hospitality sector which are
described as below: -
 Department manager of housekeeping: - It is an operational role which is crucial within
hospitality sector because in the department of housekeeping manager is responsible for
handling the cleanliness of room and every single corner of whole area.
 Head manager of food and beverages: - This operational role is available in The
Connaught hotel due to the current pandemic situation ( Yu and et.al, 2020). As there is a
need of food and beverages head manager who has the liability of handling the quality
and building up effective level of customer satisfaction.
Skills required for the roles within hospitality sector
In the hotels skills are required at each phase because without the use of all such talents
and skills it is not possible for the hotel to manage all activities efficiently. In context with The
Connaught hotel, they have number of vacancies and employees for which various abilities are
needed and it is being illuminated as below: -
Operation manager: - The Connaught hotel is a luxurious hotel industry which has huge
vacancies within their management due to the situation of covid-19 pandemic. For example the
human resource manager of organization looks for operations manager who can handle all kind
of production activities. In accordance with this different skills are needed which is described
below: -
 Communication skills: - It is the essential ability which is required by operation manager
so that all roles and responsibility can be executed well. Without the use of effective
communication the operations cannot be managed and no activity would be done
properly in the hotel.
IT department head: - It means that the hotel is looking for the individual who has high
level of experience in the field of information technology and have information regarding
how to secure the data of all the consumers. In terms of this different skills are needed which
is defined below:-
 Problem solving: - It is a significant skill which is required by IT department because the
person is responsible for solving and managing all problems related to technical aspects
with the use of knowledge of different languages.

Skill gaps within hospitality sector in relation with different operational roles
There are numerous types of operational roles like human resource department, front
office, housekeeping and many more. All these sectors require certain effective skills in order to
execute the work in a proper manner.
 Skills gap in hotel industry: - The competition level in the marketplace is increasing day-
by-day at large scale due to which it is becoming challenging for many business
organizations to achieve goals and objectives within the deadline and the main reason for
this is skill gaps ( Christou, Simillidou and Stylianou, 2020). It has been evaluated that
with the increase in competition individuals are improving their abilities but the
requirements in hotel industry is getting changed due to which skill gaps arise. In
accordance with The Connaught hotel they also had skill gap as the old employees find it
hard to get adjust with new technologies, multitasking activities and many more.
Impact that skill gaps have on hospitality business and valid solutions
Skill gaps create an impact on hotel industry because they provide comprehensive
overview about all abilities which are significant to enhance the productivity level and are
required at initial stage. With respect to solutions it is discussed below: -
 Training and development programs: - The significant solution for Hotel Connaught is
to conduct training and development program within every month and it becomes easy
for them to enhance knowledge as well as skills of staff members in context with new
techniques and implement changes accordingly.
CONCLUSION
From the above analysis it has been concluded that various decisions have been made in
terms of hotel industry, their product and service range, functional, operational units and their
interconnection. Both licensing and franchising, skill gaps have been evaluated well. It has also
been described that contemporary hospitality industry needs to be effectively analyzed so that
proper decision can be taken.

REFERENCES
Books and Journals
Christou, P., Simillidou, A. and Stylianou, M.C., 2020. Tourists’ perceptions regarding the use of
anthropomorphic robots in tourism and hospitality. International Journal of Contemporary
Hospitality Management.
Giousmpasoglou, C., Marinakou, E. and Zopiatis, A., 2021. Hospitality managers in turbulent
times: the COVID-19 crisis. International Journal of Contemporary Hospitality Management.
Ivkov, M., and et.al, 2020. Expectations and satisfaction of hospitality students with employment
in hospitality industry. Turizam, 24(2), pp.57-67.
Liu, T., and et.al, 2020. How career expectations influence advancement: evidence from women
in the hospitality industry. Tourism Review.
Njoroge, M., and et.al, 2020. Entrepreneurial orientation in the hospitality industry: evidence
from Tanzania. Journal of Entrepreneurship in Emerging Economies.
Reis, J and et.al, 2020. Service robots in the hospitality industry: The case of Henn-na hotel,
Japan. Technology in Society, 63, p.101423.
Rivera, D.E., Casadesús Fa, M. and Villar, A.S., 2021. Identifying and Measuring Customer
Delight in the Hospitality Industry. Tourism Analysis, 26(1), pp.1-10.
Teng, C.C. and Cheng, S.S., 2020. Hospitality ethics: Perspectives from Hotel practitioners and
intern students. Journal of Hospitality & Tourism Education, pp.1-12.
Tews, M.J., and et.al, 2020. Turnover among young adults in the hospitality industry: examining
the impact of fun in the workplace and training climate. Employee Relations: The International
Journal.
Yu, Y., and et.al, 2020. A systematic review of research on abusive supervision in hospitality
and tourism. International Journal of Contemporary Hospitality Management.