Trends and Development in the Hospitality Industry: Impacts on Working Culture

In this assignment, the hospitality industry's reliance on government laws to address operational and managerial issues is discussed. The sector also predicts future trends, enabling hotels to compete in the European market. A review of relevant literature highlights the importance of reputation, emotional intelligence, and social media in enhancing customer satisfaction and employee loyalty. Furthermore, the industry faces challenges such as managing people, productivity, and quality, which can be addressed through relationship marketing and service operations. The assignment also explores recent trends, including serviced apartments, front office flexibility, and advanced technology, which have a significant impact on working culture, employee satisfaction, and customer experience.

Contemporary
Hospitality
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TABLE OF CONTENTS
INTRODUCTION ...............................................................................................................................3
1.Identify two of the most recent developments that have occurred or are likely to occur anytime
soon in the future.............................................................................................................................3
2. Explain these developments will have effects on hospitality......................................................4
3. Explain issues of hospitality might face due to the increment in wage rate and changes might
affect the employment terms and conditions...................................................................................4
4. Trends and development can be expected in future.....................................................................5
5. Impacts these predicted trends and developments will have on the various aspects of the
hospitality.........................................................................................................................................6
CONCLUSION....................................................................................................................................6
References............................................................................................................................................7
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SUMMARY
Current image of hospitality industry UK
United Kingdom is regarded as an island country located on the north-western coast of the
European continent. Further, the entire nation is well known for the natural scenic location along
with the spectacular monuments. UK posses capability to attract large number of visitors and in the
entire nation hospitality industry is fast growing. This industry is fragmented with huge number of
companies operating on smaller basis and overall contribution is 3.6% in the GDP of the nation
(Invest in UK., 2016). Government of UK has imparted funds to large number of bodies for the
development of tourism and this has supported in enhancing national along with international
tourism. Hospitality along with the tourism sector of UK takes into consideration large number of
businesses involving accommodation, food and beverage etc. Moreover, large numbers of
employment opportunities are being provided to the local residents which are fruitful for entire
nation. In short, the overall growth of country is highlighted by the range of employment
opportunities for graduates in different areas which are finance managers, contract caterers etc.
At present 22000 hotels are being present where more than 16000 breakfast restaurants are being
present whose main motive is to deliver large number of services to the customers as per their
needs. Apart from this, the overall restaurants present in the nation provide employment
opportunities to the individuals such as part-time or full-time. The entire hospitality sector
contributes 19% of the total income and it is estimated that 1.5 million jobs will be provided to the
individuals living in the society (Invest in UK., 2016). The overall data being undertaken represents
the real growth of hospitality sector which is supporting in development of UK. Apart from this,
government is also supporting this sector in every possible manner where proper funds are provided
for the development of site along with other areas which needs to be focused. Current image of
hospitality industry is influenced due to various factors such as technological Nowadays, hotel
industry is being utilise technology with a view of achieving the greater satisfaction. Example:
Hilton hotel is increasing integration of internet into its key operations and advancing hotel booking
functionality through online service. Political is another key factor where country like USA, New
Zealand and Canada is not possible to visit without the permission of UK government. The UK and
Ireland remained outside due to fear of terrorism. The act of terrorism has direct impact of the
number of service users to visit in the area. Apart from this legal factors are present where the
minimum wages rate has been increased by UK government that would increase the operating costs
of budget hotels. It must increase the cost of production which hampers the policy that offer price of
product in competitive market.
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INTRODUCTION
Hospitality can be defined as the relationship between a guest and the hoteliers. It is diverse
due to innovation, ownership, operation classification, level of service, future trends etc. In Europe,
there are many hotels and restaurant which provides standard services to the service user
(Radojevic, Stanisic and Stanic, 2015). The hotel now focuses on internet, gymnasium, swimming
pool, sauna bath, night clubs, hair and beauty salons, car parking etc. Present report is based upon
hospitality industry of UK which is facing issues related to current changes in laws and regulations.
It is affecting hotel sector to a great extent and accordingly detail overview has been provided.
Furthermore, this file explains the recent trends which have been occurred in the economic market.
Further, it also emphasizes on problems that are faced by the hospitality industry due to increment
in the wage rates (Gummesson, 2014).1. Identify two of the most recent developments that have
occurred or are likely to occur anytime soon in the future
There are many facilities which are included in the accommodation like internet, swimming
pool, sauna bath, night clubs, hair and beauty which attract guest. The two most recent trends are as
follows:
 Serviced flat: It is the new aspect which has made mark in UK in 2015 with introduction of
new service such as Urban Villa. London is attracting a number of investors by using
serviced flat. It is fully furnished available for the short term and long term stay of family or
business person. They provide Wi-Fi, restaurant, swimming pools, Golf course, health club,
media room which lures the customers to stay in Hotel (Law, Buhalis, and Cobanoglu,
2014).
 Greater flexibility of Booking: Hospitality industry provides E-Booking facility to book
and get the tickets quickly and easily. Clients can book the tickets by using mobile
application or online portal which will make it possible to book tickets anytime as per the
suitability of customers. (Lub and et.al., 2012).
From the above mentioned trends, by making bookings through website reservations is
contributing in flourishing its business. Due to invention of new technology, the life of customers
has become easier. The term globalisation has also created impact on the hospitality industry. The
hoteliers are thinking to expand their business and establish current trends in Hotel for attracting the
customer and enhancing the image of the hotel worldwide.
2. Explain these developments will have effects on hospitality
In new era, the hospital industry has adopted various new trends to increase competition in
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the market. They accept various tremendous changes in accommodation service such as Wi-Fi, Hair
and beauty, swimming pool in room etc. The customers have started spending in leisure travel and
holidays (Andreeva, 2012). They have made contract with different airline industry which provides
budgeted airlines to the customer. Moreover, the budgeted hotel came into existence which provides
facilities like package for family at the cheaper rate. So, service user started spending more money
in the hotel or restaurant which increased the flexibility in business operation. By using updated
technology such as internet, Wi-Fi, M-application where the customers can book the hotel rooms
and makes changes in booking if possible. The contribution of technology has strengthened and
contributed in the growth in hospitality sector. The customer can find the information about Hotels
and can choose as per the convenience or affordable
The Hoteliers can simplify the booking process from greeting customers, providing
information, check in or out, till they leave the premises. The hoteliers emerge to provide quick
service in restaurant and contract with caterers who provide the affordable service on table (Endter,
2011). The hospitality also uses applications that would help to reach the customers on one click.
This application tracks the customer and provides information about the events and facilities which
are conducted by hospitality association. Due to increasing use of technology, the hoteliers can track
time, name and number of customers who visits frequently advertise on Facebook page. Other than
this, the CRM system can send the information through mails to the customer, which builds the
brand image to the existing customer. The CRM system works on digital platforms and database
that the hotel can get more clients. By using centralised system, the hotel gets advantage of
flexibility in the workplace which reduces the cost of product or service (Williams, 2012).
3. Explain issues of hospitality might face due to the increment in wage rate and changes might
affect the employment terms and conditions
Minimum wage rate is a national economic policy which is responsible for the hospitality
industry services. The managers of hotel have to pay employee minimum wages as per the
guidelines of UK government (Gursoy and et.al., 2014). The federal sets standards to the minimum
wages to the workforce that changes might affect the employment terms and condition. These
factors are as follows: Employee and employer: Increment in wage rate can create negative effect on employee.
Minimum wages rate usually create lower wealth in hospitality and for other individuals in
the business market. By increasing the tax liability, it can affect the wealth of employee and
can reduce the income level. This can decrease the motivation and satisfaction level in the
workplace (Issues, challenges and trends that hospitality industry is facing, 2016).
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 Labour market: The high price of labour is directly impacted to the premises in market. In
case of economic booms, the price of labour goes up as the skilled or experienced person
requires high wage to work. The result is that the skilled and experienced individuals are
attracted to the other industry where they are paid more. In hospitality, skilled and
experienced employees are paid less.
 Poverty level: The minimum wage rise will uplift unskilled or inexperienced workers out of
poverty. However, 2003 study stated that 15% of minimum wages earners would be directly
impacted by the increase in the minimum wages. Example: Texas in 2010, minimum wage's
employee earns $510 over the national poverty level. The hospitality is unable to pay higher
wages which are enforced to reduce the employee numbers or supply high cost product to
the customers (Wolfe, Phillips and Asperin, 2014).
Significant impact on the employment terms and conditions
UK regulates labour laws which build strong relation between workers, employs and trade
union. Individuals in UK hospitality industry get benefits by using various Acts, regulations in
hospitality sector. These laws are described below:
 National minimum wages Act 1998: This act makes provision for the employee who get
minimum wages as per skill or experience. This act created responsibility to the hospitality
sector on National Living Wage for workers, which has implemented at higher minimum
wage rate of £7.20 (Chang, 2013).
 Working time regulation Act 1998: This act regulates and governs the time that the
employee may work in UK hospitality industry. This regulation applies on all workers and
specifies the minimum rest time, daily and weekly rest (Inversini and Masiero, 2014).
4. Trends and development can be expected in future
Health Camps: It includes overall wellbeing of health centre at hotel that individual is
experienced in holiday becomes more desirable to the service user. The hospitality association are
rebrand in order to increase the wellness, recognition of the business procedure and focusing on
fitness by facilitating gymnasium or other fitness equipment.
Trip advisory: The hospitality industry also focuses on trip advisory which provide advice
for trip and share the videos on special portal tripadvisory.com to their guest. In this, the advisory
person shares the pictures of hotel and reviews that make impression on the service user to that
hotel. This give new sight to the visitors and it also facilitates the reservations service for customers
in advance at hotel. This also provide effective system to hotel industry that provides hotel chains so
the service users can visit the uploaded fresh image of hotel and answer to the online customers
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(Endter, 2011).
5. Impacts of predicted trends and developments will have on the various aspects of the hospitality
Development of new trends improves service and helps in understanding the customer's
expectation in hospitality. The hotel industry setup the system that helps in growing the economies
in many countries that increase quality of service. Hotel industry also implements quality based
foundation which focuses on the new trends which adopts the hospitality to enhance quality in
products. This new trends have quite significant impact on hotel as they provide knowledge and
enhance the skills to their workforce. By accepting changes, the hotel can make transparency into
the service or product which is delivered to customers. Hospitality association seeks to progress
after accepting changes which can help in creating competitive advantage in the market. Moreover,
this will provide a brief description of different practice and procedure which a hotel can use to
predict the expectation of customers. With this, the hospitality industry increases the interest of
investors to invest in the hotel industry (Recent trends in hotel industry and its impact on
individuals’ spending, 2016).
MIND MAP
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TRENDS AND
DEVELOPMENT IN THE
HOSPITALITY
INDUSTRY
Impacts on
working
culture
Impacts SERVICED
APARTMENTS
FRONT ON
HOUSE
FLEXIBILITY
Rise in level of
customer
satisfaction
Enhanced
customer service
Enhanced employee
satisfaction
Advanced
technology

CONCLUSION
As per the mentioned case, most of restaurant and hotel have viewed current trends which
are helpful to increase customer volume and revenue. This can only be done when hotel has
sufficient amount of money to implement the changes or adopt new technology at workplace. The
customers are more satisfied if hotel covers all legislation which is required for the product or
services. By using government laws, the hospitality also address the issues faced by the operational
or managerial functions of the hotel. The business predicts the future trends which is beneficial for
the hotel to compete in the Europe market.
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REFERENCES
Books and Journals
Andreeva, A., 2012. Health Tourism Within the Contemporary Hospitality Industry: Issues,
Challenges and Development. Uni-Ed.
Chang, K.C., 2013. How reputation creates loyalty in the restaurant sector. International Journal of
Contemporary Hospitality Management. 25(4). pp. 536-557.
Chon, S. K., 2014. The Practice of Graduate Research in Hospitality and Tourism. Routledge.
Endter, C., 2011. Managing People in International Hospitality and Tourism Industries. GRIN
Verlag.
Gummesson, E., 2014. Productivity, quality and relationship marketing in service operations: A
revisit in a new service paradigm. International Journal of Contemporary Hospitality
Management. 26(5). pp.656-662.
Gursoy, D., and et.al., 2014. Handbook of Scales in Tourism and Hospitality Research. CABI.
Inversini, A. and Masiero, L., 2014. Selling rooms online: the use of social media and online travel
agents. International Journal of Contemporary Hospitality Management. 26(2). pp. 272-
292.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary Hospitality
Management. 26(5). pp. 727-750.
Lub, X., and et.al., 2012. Different or alike? Exploring the psychological contract and commitment
of different generations of hospitality workers. International Journal of Contemporary
Hospitality Management. 24(4). pp. 553-573.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that influence
customer satisfaction in the contemporary hospitality industry. Tourism Management. 51,
pp.13-21.
Williams, A., 2012. Understanding the Hospitality Consumer. Routledge.
Wolfe, K.L., Phillips, W.J. and Asperin, A., 2014. Using hotel supervisors’ emotional intelligence as
a benchmark for hospitality students. Journal of Hospitality & Tourism Education. 26(1).
pp. 2-9.
Online
Invest in UK., 2016. [Online]. Available through <http://www.investinuk.net/industry/hospitality-
tourism/hospitality-tourism>. [Accessed on 10th August, 2016].
Issues, challenges and trends that hospitality industry is facing. 2016. [Online]. Available
through:<http://ahrmhospitality.com/articles/industry-articles/32-issues-challenges-and-
trends-that-the-hospitality-industry-is-facing>. [Accessed on 6th August, 2016].
Recent trends in hotel industry and its impact on individuals spending. 2016. [pdf]. Available
through:<http://www.ijettjournal.org/Special%20issue/ICGTETM-2016/
ICGTETM_2016_paper_95.pdf>. [Accessed on 6th August, 2016].
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