Contemporary Hospitality Industry - Assignment Sample

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1) Explain different types of business related to hospitality industry and diverse product and
services they offer. .................................................................................................................1
P2) Study various range of functional and operational departments in hospitality business. 2
P3) Discuss contribution of hospitality industry in local, national and international economies
................................................................................................................................................3
LO 2.................................................................................................................................................4
P4) Investigate various operational roles within the hospitality industry..............................4
P5) Study the necessary skills required for roles within hospitality industry. ......................5
LO 3.................................................................................................................................................6
P6) Examine political, social, economical, environmental, technological and legislative
factors affecting firms operations in an hospitality industry. ................................................6
P7) Undertake a SWOT analysis for a hospitality business and review how this can inform the
decision-making process........................................................................................................7
LO 4...............................................................................................................................................10
P8) Appraise the implications of current and potential trends in hospitality industry.........10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industry term can be defined as service industry which includes
transportation, cruise line, event planning, theme park, lodging and additional field within the
tourism industry. It is the fastest growing sector across the globe and includes pubs, hotels,
contract catering, restaurants and other hospitality sectors. This report is based on Premier Inn
which is a British hotel chain in UK. Company was founded by Whitbread in the year 1987. It is
situated in Dunstable, United Kingdom. Here, the provided report includes various types of
businesses in hospitality industry. Also, focus on range of operational and functional
departments in a firm so that errors can be eliminated. Moreover, contribution of hospitality in
local, national are studies deeply (Claveria and Torra, 2015). Additionally, Pestle and SWOT
analysis are conducted in order to examine the market scenario so that tactics can be framed
accordingly by the organization.
LO 1
P1) Explain different types of business related to hospitality industry and diverse product and
services they offer.
Hospitality industry deals in huge number of business like, food and beverages,
entertainment industry, lodging accommodation, travel and tourism etc. It also deals in
uncountable number of product and services in order to satisfy the emerging needs of the
customers in the cut throat competitive world. Here, the various types business related to
hospitality industry are explained as follows:
Entertainment industry: In context of Premier Inn they set up various adventure trip,
sport indoor and outdoor activities, different types of rides, etc. by which loyal clients are build
for the business in the competitive world. It included service which provide memorable and
unforgettable experience to visitors or travellers . Moreover, hospitality industry involves
several types of functions which are able to pull potential customers in order to gain huge profits
so that growth and development can be done. However, people travel from one place to another
to bring a change in their hectic schedule. So that they can enjoy some leisure time by enjoying
various kinds of entertainment activities provided by Premier Inn .
Food & Beverage: In this case, Premier Inn serves food and beverages which are of
best quality and are also organic and healthy to their customers. So that more customer base can
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be increased towards the service in the near future. Here, this function start with the production
of food and later on explored into other food sector like, food transportation and storage.
However, food administration represent dishes in attractive manner or style so that clients can
experience amazing hospitality services. Additionally, hospitality sector offers products and
services like, accommodation, food, wardrobe function etc. to their customers in order to gain
trust in the eyes of the consumers (Huang and Wan, 2016).
Lodging and Accommodation: Premier Inn render accommodation to travellers and
also serve all necessary livelihood amenities in order to make their trip homely and comfortable.
In the today's world the concept of accommodation is wider in an company as it involves several
services which are hotels and resorts. However, this is wider aspect which serves huge range
from bed & breakfast, lodging, suites and resorts to it's visitors in the market place. Hospitality
industry act as a bridge which shorten the gap between consumer and organisation by
accomplishing their basic requirements in the competitive world.
P2) Study various range of functional and operational departments in hospitality business.
Every organization has several range of functional and operational departments
depending upon their type of business in the cut throat competitive world. Here, different range
of functional and operational departments are explained as follows:
Housekeeping: In the era of 21st century housekeeping is the core task which is
performed by every hospitality industry in order to create brand recognization in the market. In
this cleanliness and neatness of room is considered in order to give good experience to its
customers. In Premier Inn it is the duty of house keeping administration to maintain cleanliness
in each and every room of hotel so that positive and pleasant experience can be provided to the
customers while visiting the place. For example: Premier Inn human resource department hire
appropriate and skilled nominee for housekeeping department so that maintenance can be done
accordingly and customers expectation can be fulfilled in the competitive world (Jones and
Comfort,2016).
Finance department: In cut throat competitive world the primary function of financial
department is to ensure monetary stability in the market. It can be maintained by carrying out
activities like, making cash, maintain financial records and fund flow statement as it shows
steady cash flow for their daily operations in the competitive world. In the competitive world
Premier Inn keep proper records of their funds gained and invested through out the year so that
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financial transaction carried out in an company can be examined or determined. Additionally, it
aid to determine funds needed in the near future in order to carry out business activities.
Marketing: Every organization need marketing department in order to promote their
business product or services in the cut throat competitive world. On making the product or
services on the tip of the customers marketing plays a vital role in it. Premier Inn uses effective
marketing tactics in order to shares necessary information to the customers regarding product
and services. It can be done by adopting marketing platforms such as, digital marketing, social,
content marketing etc. Marketing of the services or product for Premier Inn necessary in order
to attracts more and more clients and to capture huge market ratio in the cut throat competitive
world (Kandampully and Bilgihan, 2015).
P3) Discuss contribution of hospitality industry in local, national and international economies
Hospitality industry contributes in the growth of the local, national and international level
which are explained as follows:
Local economy: In the 21st century, local economy of a nation is greatly affected by
hospitality industry because they generate more employment opportunities in the community for
the people. Premier Inn is also contributing in the growth of the economy by carrying out
activities like, creating employment for the people in the society, raising the income of people
and by collecting taxes. By doing so hospitality sector improves the growth rate of the local
region. It directly or indirectly benefit the society, business, people if visitors number of tourist
increases in the state. As the visitors are raising increasing at local level in the country the
profitability ratio is increasing accordingly. Due to which living standards of the people are
increasing as well as the economy.
National economy: In the competitive world economic factors such as, norms, policies,
regulations etc. directly affect the cash flow of the nation at a tremendous scale in terms of fiscal
policy, GDP growth rate etc. However, hospitality industry is flourishing at a rapid scale in the
market as it increase the rate of import and export at global level in the cut throat competitive
world. By doing so Premier Inn generated the brand value of country by positively impacting
on the image of the country (Kim and Knutson, 2015). Moreover, it assist the firm in raising the
number of tourists to visit their nation by executing flexible tourist policies which directly leads
to growth of the economy.
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International economy: In order to flourish in the competitive market place Premier Inn
research distinguished industry factors in direct or indirect way in the market place. However, In
existing market scenario travel and tourism industry are contributing in economy growth by
creating more and more employment, increasing foreign exchange, etc. Due to which economy
of the nation has been impacted positively. By carrying out all this activities in the country
hospitality industry is able to share hands in the growth of the economy at international level.
LO 2
P4) Investigate various operational roles within the hospitality industry
Every big or small business associates has distinguished operational roles according to
their type of business being carried out in the market place. Here, are some of the operational
roles performed by Premier Inn in the cut throat competitive world are explained as follows:
Enhancing efficiency: Organization is accountable to raise the efficiency of the
employees within the working premises (Liang and Lin, 2017). In Premier Inn director is liable
to increase the efficiency of various operation such as accommodation facility, transportation
facility, food department, lodging etc.
Coordinating training: To retain effective and skilled employees in an enterprise proper
coordination should be there among employer and employees in the market place. By providing
effective training to the staff members it aids the firm to decrease the cost of production which
are render by them to its consumers. Moreover, Premier Inn utilizes resources in effective and
efficient way so that less or no wastage can be occurred. Company also monitors all the activities
so that resources are used in proper manner for best outcomes. The training department handles
various divisions of a firm so that they can be motivated to meet the desired objectives on time.
Increasing satisfaction: The operational manager of Premier Inn carry out distinguished
duties and responsibilities which are, employ, manger, staff etc. in order to satisfy their
customers in the competitive market place. In order to bind the consumers for longer time
duration company improves facilities of various functions in hospitality sector such as, food,
quick service, transportation etc. by which emerging needs of the customers can be fulfilled in
the market place. Premier Inn offers various unique services to their loyal customers due to
which they are able to share memorable experience with others regarding the hotel, place etc. By
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doing do indirectly goodwill of the hotel increased in the market which is a positive sign for the
firm (Lopes, 2016).
Maintaining contact: In hospitality industry director design effective communication
channel among employer and employees so that smooth function of the business can be carried
out respectively. By doing so it assist them to interact directly with potential consumers and
information can be exchanged freely. Premier Inn was benefited by effective communication and
contacts as it increased their sales ratio in the cut throat competitive world. For example: In an
organization when food department runs out of food shortage and customers demand to be
fulfilled in this particular case firm can directly approach to its supplier to provide necessary
food ingredients in short notice period as enterprise has build strong relations with their suppliers
in all this years.
P5) Study the necessary skills required for roles within hospitality industry.
The required skills needed in hospitality industry are discussed below:
Team work: To be successful in the competitive world hospitality industry need to work
together with each other as all functions are inter-connected. Here, all the administration work
day and night to meet the set objectives on time as well as to satisfy customers needs in the
market (Ozturk, 2016). This goals can be achieved in the cut throat competitive world when
employees of enterprise work as a team. Management of Premier Inn provide effective training
to the workers so that enthusiasm and zeal to work together can be developed among them.
However, in present existing scenario, Premier Inn has came across the issues related to staff
members conflicts in the working premises due to which productivity and profitability decreased
at a large scale.
Communication skill: To be a part of hospitality sector communication is the mandatory
skill which is compulsory in all departments and job roles of an industry in the cut throat
competitive world. In today's era specially in service industry two type of communication are
widely used such as oral and written ways of communication. In case of Premier Inn while
hiring human man power they select those candidates which hold excellent writing skills. Along
with this skill an staff members can easily understand the customer need and accordingly fulfil
them within given time period.
Enthusiasm: In an organization great staff members or professionals of hospitality
industry execute their work with enthusiasm and zeal. They work in the company not to earn
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money by they worship their work their main motive to enjoy the work not to take it as burden.
By doing so it increase the morale of workers and they work to strive their job with in best-
possible manner. Here, in Premier Inn the enthusiasm and zeal to work is an primary skill as it
increases the performance of employees in the competitive market place. It directly or indirectly
assist a business associates to raise customer base by providing effective services and fulfilling
their emerging needs.
LO 3
P6) Examine political, social, economical, environmental, technological and legislative factors
affecting firms operations in an hospitality industry.
PESTEL analysis (Political, economical, social, technological, environmental and legal)
is carried out in an organization so that market scenario can be carried out easily and effective
strategies can be farmed. The PESTEL analysis of Premier Inn are explained as follows:
Political factor: Political factor includes tax policies,trade restrictions, foreign trade
policy, consumer protection laws etc. framed by the governing bodies. Premier Inn gets affected
by the political factor due to which productivity decreases as well as profitability(Putra and Liu,
2017.) .
Economical factor: The economic factor also affected the industry as in the year 2008
the economic crises arises in the UK due to which rates of the hotels came down in the market.
Premier Inn was benefited by the disaster and firm was able to satisfy the customers’ needs in the
market due to which profits increased.
Social factor: In the cut throat competitive world social factor are greatly affecting the
business profitability ratio in the market. On seasonal holidays like, Easter, bank holidays and
Christmas customers like to spend huge money on this particular time duration. So firm make
tactics to attract customers towards their services.
Technological factor: More uses of internet browsing and computers has increased the
visibility and ease of use of Premier Inn in the market. Due to which more customer base
increased and profitability ratio increased.
Environmental factor: The natural resources should be used in effective manner with
less or no wastage so that environment does not deplete. Company should use the process of
recycling in the market so that brand recognition can be increased in the eyes of the customers.
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Legal factor: In the current market scenario the government has raised the wages of the
employees. So Premier Inn need to pay wages or salary to the staff members according to this
standards. Also, health and safety laws need to be followed by the company so that working can
be done smoothly (Radojevic and Stanic, 2015).
Pestle analysis of Marriott.
Political factor: Political factor plays a vital role in the growth and development of the
business across the globe. Bureaucracy, tax policy, etc. are some of the political factors which
affect the Marriott decision making process in every aspects. In order to attain set objectives firm
need to examine political factor respectively.
Economical factor: In order to explore business at global level company need to follow
economical factor in effective manner. Some of the economical factor are, tax rates, interest
rates, wages etc. which affect Marriott decision making process at a large scale. By evaluating
this forces smooth running of business can take place.
Social factor: To raise the goodwill in the eyes of the customers social factor is must to
adopt. Religion, beliefs, cultural taboos, traditions etc. are forces which affect the business
growth and expansion activity. By carrying out this activities sales ratio can be raised and profits
can be maximized.
Technological factor: Marriott is adopting modern tactics to attract customers towards
their services. The facilities of providing online booking aid the firm to raise sales ratio at a rapid
scale. It directly leads to increase in productivity and profitability ratio.
Environmental factor: To run the business for longer time duration in the competitive
world environmental factor must be carried out effectively and efficiently. Raising temperature,
pollution etc. are environmental forces which affect the business growth and development.
Legal factor: This plays a significant role in the competitive world. In order to retain
skilled employees for longer time period legal factor must be carried out in the firm. Securities
act, employment act, consumer protection act, etc. some of the examples of legal factors.
P7) Undertake a SWOT analysis for a hospitality business and review how this can inform the
decision-making process.
SWOT analysis is a strategy used in every industry to identify their strengths,
weaknesses, opportunities, and threats which is related to particular project which is essential for
specification of objective and they can improve their weakness (Walsh and Tse, 2015). Premier
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in uses SWOT analysis to estimate threats and weakness so the step to remove that can be taken
and also increasing value of strengths.
SWOT of Premier in -
STRENGTHS WEAKNEESES
 The hotel is a UK's largest brand
having 50000 rooms and more and
approximately 700 hotels which makes
them well established brand.
 They offer various offers to their
customer and best deal in online
booking which makes hotel attractive .
 They are not globally well known as
they only possess international hotel
chain.
 The competition is very high for this
brand which result in low margins as
price need to be adjusted according to
competitor.
OPPORTUNITIES THREATS
 This hotel brand is making tie up with
other reputed hotel brand which makes
them more stronger in competitive
environment.
 The hotel is more investing in digital
marketing which result in higher
publicity because this is a digital era
and almost population is connected
digitally.
 The hotel provides rooms to guest
without viewing the activities which
makes it more risky for the hotel as if
anything goes wrong it will directly
impact the hotel.
 The hotel has threat from the
backpackers hotel as they provide
facilities at very cheaper rate which
may attract guest more and the hotel
will lose their guest.
SWOT analysis of Marriott
STRENGTHS WEAKNEESES
 Main focus is on innovation due to
which huge customers are attracted.
 More number of hotels in the market
due to which brand dilution take place.
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 Positive image is build in the eyes of
the customers.
 Firm is able to gain huge competitive
advantages in the market.
 Limited market share is captured due to
which less profits is generated.
 Focus more on traditions due to which
customers needs are not fulfilled.
OPPORTUNITIES THREATS
 More potential in emerging markets.
 Focus on more creative product and
services.
 Renovations can be done at a large
scale.
 Stagnated growth taking place in the
market.
 Increasing competition in the market in
terms of prices of the hotels.
 Entering of new business with less
price and good quality.
Influence in decision making-
This analysis is very useful for decision making process of hotel as it provides required
information. Data regarding hotel strengths, weakness of hotel and threat or opportunity for
hotel. Here the allocated knowledge aid the firm in deciding the upcoming strategies of hotel
so that they can overcome the weaknesses by taking actions for it and adding more value to the
strengths recognized through analysis. The hotel uses SWOT also to identify opportunities so
hotel can utilise it in effective manner and estimated the upcoming threats so the decision can be
made to form a strategy to remove that (Tresidder, 2015). Thus, we can say swot analysis
provide various information to the hotel and provide a basis for decision making.
Influence in decision making Marriott
SWOT analysis influence Marriott decision making process in a positive manner. By
conducting this analysis in the open market the threat and opportunities can be examined and
strategies can be formulated accordingly. By doing so set goals can be achieved and demand and
preferences of customers can be achieved. By evaluating strengths and weaknesses the decision
can be taken respectively in the cut throat competitive world.
Supply and Demand of Marriott: The supply and demand of Marriott is unable to meet
the dynamic needs of the customers because they are using traditional ways of marketing. The
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ineffective ways of marketing in the competitive world leads the firm in decreasing their sales
volume continuously.
Supply and demand of Premier Inn: Premier Inn is focusing more on expansion of
business to other nations due to which customers needs are not meet on time. There is ineffective
supply and demand of product and services in the market due to which emerging preferences of
the consumers are not achieved on time. In order to gain competitive advantages Premiere Inn
need to adopt to the dynamic environment.
LO 4
P8) Appraise the implications of current and potential trends in hospitality industry.
Current trends: In an organization current trends are carried out in so that huge number
of customers can be build for the service. The various current trends are explained as follows:
Virtual tour: By this huge number of attracted for the services and are making up their
mind travel across the globe. By this trend organization are farming effective tactics so that
customers does not switch to other brand. Also set objectives can be achieved accordingly.
Advance Technology: In today's world customers want everything in their phone.
Before confirming the booking customers want all the relevant information in their official
websites. From room rates to food and beverages offered to them in the market place.
Organization adopts current trends in their working premises so that visitors can be attracted for
the service and product.
Trends evaluator:
By following currents trends prevailing in the market administration is able to build
potential customers for their services for longer time period. Also, helps the company to build
goodwill in the eyes of the customers due to which huge profits is attained.
For a company which is working in hospitality industry has to follow several given trends
in order to retain their business for longer period in the cut throat competitive world. Here, are
some of the implications of current and potential trends in hospitality industry which are
explained as follows:
 Sustainable rules: In today's world eco-friendly activity are becoming a norm in
present market scenario in order to survive in the market. In the existing market trends
various association monitors the working activities of an business associates. By doing
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so it aid to save environment and natural resources of country such as water, coal, etc.
Example: In the present market scenario Premier Inn implement solar panel which t
helps them to generate energy from natural resources without hampering the natural
resources which bare scare in resources.
 Technology: To be successful in the market firm need to use modern technology in
order to meet the demand. Moreover, in existing scenario large number of customers are
self-sufficient and friendly with technology. Premier Inn implement high technology in
their working premises so that more customers can be attracted. Example: Premier Inn
is providing high speed Wi-Fi services inside all whole infrastructure of organisation so
that working activities can be carried out easily and smoothly (Wang, 2016).
 International visitor: In the 21st century many customers urge to visit other countries
so number of international visitor is increasing accordingly. However, Premier Inn
discovered their services in different languages to customers so that diversified people
can enjoy their services . Example: Premier Inn recruit those employees which are able
to communicate in more than one language so that quarries of the customers can be
resolved (Liang and Lin, 2017).
CONCLUSION
From the above it can be concluded that different types of businesses in hospitality
industry is helpful in binding customers for longer time duration towards their services.
Organization is contributing in growth and development of the nation at all levels like, local,
nation and international due to which living standards of the people are raising accordingly in the
market. Business associates look into various skills before hiring participants in the industry so
that effective results can be achieved. PESTEL and SWOT analysis is conducted by the firm so
that market current trends can be evaluated and strategies can be designed in order to meet the
emerging needs of the customers.
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REFERENCES
Books and Journals
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leadership on firm performance in the hospitality industry. International Journal of
Contemporary Hospitality Management. 28(5). pp.945-968.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
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Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
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Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
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industry. International Journal of Contemporary Hospitality Management. 28(4).
pp.801-817.
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Liang, T. L., Chang, H. F., Ko, M. H. and Lin, C. W., 2017. Transformational leadership and
employee voices in the hospitality industry. International Journal of Contemporary
Hospitality Management. 29(1). pp.374-392.
Walsh, K., Chang, S. and Tse, E. C. Y., 2015. Understanding students’ intentions to join the
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