Hospitality Industry Structure and Operations

This assignment delves into the multifaceted aspects of the hospitality industry. It examines the diverse organizational structures found within establishments like hotels and theme parks, highlighting key roles and responsibilities at different management levels. Furthermore, it analyzes the varying staffing needs across various hospitality sectors, emphasizing the importance of human resources in ensuring successful operations.

CONTEMPORARY
HOSPITALITY INDUSTRY

Illustration Index
Illustration 1: Scope in Hospitality Industry....................................................................................5
Illustration 2: Sub categories of General Manager in 5-star Hotel..................................................7
Illustration 3: Organizational Structure of Five- Star Hotel............................................................8
Illustration 4: Organizational Behavior of a Theme Park................................................................9
Illustration 5: Different Staffing Requirements in Organization...................................................12

INTRODUCTION
In the world, hospitality industry is one of the most flourishing industries. In this sector,
there are many businesses which are included in this, for example, hotels, restaurants, pubs,
catering and other several services. Customers are the strong pillars of this industry as it is all
about giving customer services and making them satisfied. This sector is very diverse in terms
of functionality and it is always changing according to the current trends in market. These
changes are very important in industry as these interest of businesses is to meet their customer's
expectations in every field. Over the years, development of other industry's has become a big
issue because of various factors, such as, high competition in the industry. Influences of this
sector keep on changing to meet the customer's needs. This report will discuss the analysis of
hospitality sector by understanding its structure and staffing requirements. It will also focus on
its development in terms of operational, managerial and legislative issues as well as potential
trends which are affecting this sector in the United Kingdom.
TASK 1
1.1 Analyzing the current scale, scope and diversity of the hospitality industry
It is one of the most emerging sectors in United Kingdom. It was ranked as fourth largest
industry which generates approx. 53 billion GBP annually in UK. In the UK alone, there is
approx 180,000 hospitality establishments which have more than a million workers working in
this sector.
 Scope and Diversity : Scope of the hospitality industry is huge in UK which refers to
wide range of businesses it provides and different facilities. It is one of the UK’s
important industries with huge growth.
The hospitality industry is very diverse due its innovation, ownership, classification and
grading system, level of service, leisure facilities, future trends, etc. There are various types of
hotels which provide services to their guests which can help them to grow in industry (Claveria,
Monte, and Torra, 2015).

Different Types of Ownership in Hospitality Industry: There are various types of
ownership which are included in these sectors such as:
 Partnership: In this process, two or more individuals or parties work together for
organization and helps in contribution in terms of money, labor, skills, etc.
 Franchising: In this type of ownership, one person uses company's name or brand to sell
its services and for that, he has to pay to the company's owner.
 Contract: In this method, parties sign an agreement about their financial terms of
business.
 Leasing: In this method, money is paid to the owner by occupant for using that property
for business purposes.
1.2 Organizational structure of different hospitality organizations
In hospitality industry, there are so many organizational structures present in it such as
five star hotels, restaurants, bars, parks, etc. All these structures have different functions
Illustration 1: Scope in Hospitality Industry
Source : (Hospitality Industry, 2015)

according to their requirements. There are various organizational structures which exist in this
sector such as line organizational, staff or functional authority organizational, matrix
organizational structure, etc.
 Organizational Structure of Hotel: Organizational structure of hotel has a wide range
of staff employees working there. This hierarchical structure of defines number of
different positions and their responsibilities in the hotel. Organizational structure which
helps in giving services to its customers in the most effective way possible (Bolfing, and
Cadotte, 2015). Number of staff employees can vary in these hotel, but their structure
remains same.
It comprises different organizational structures that consist of specific sub-categories
such as:
 Executive Managers: These are managers which operate standards and policies of hotel
and implement these factors into management system of organization. Their
responsibility is to manage daily activities in hotel and to look after the functions of
various departments like food and beverage, laundry, and housekeeping.
 Assistant Managers: These are those employees who work under executive managers of
the hotel and follow their instructions. Their responsibilities includes assigning work to
their employees, handling complaints (Jones, Hillier, and Comfort, 2016).
 There are so many sub-categories which comes under assistant managers like
 Front office managers
 Housekeeping
 Food and beverages managers
 Sales managers
 Human resource and administration, etc.

Illustration 2: Sub categories of General Manager in 5-star Hotel
Source : (Contemporary Hospitality industry, 2018)

Organizational Structure of Theme Park: Structure of a theme plan is similar to the
hotels and restaurants only. If it is planned to operate in one location, then its functional structure
would be chosen according to the requirements of their customers. In general, the following
departments work in park to deliver their products and services:
 Legal & Administration
 Operations & Maintenance
 Marketing & Promotion
 Finance & Human Capital
 Food & Beverages
Illustration 3: Organizational Structure of Five- Star Hotel
Source : (Hospitality industry, 2018)

1.3 Role of hospitality industry related to organizations and professional bodies
Roles of hospitality sector is different for every organization and professional bodies like:
British Hospitality Association: This is a private association which was established in
the year 1907. It works for the hotel and restaurant operating in UK. The major function of BHA
is to serve government bodies to make proper business environment. This association works
usually in several key areas for the hospitality industry. For example:
1. Sustainability: It promotes the development of economic and environment related
success of hospitality sector (Kandampully, Zhang, and Bilgihan, 2015).
2. Economy: BHA helps to develop an environment for the owners where hospitality
industry can grow in competitive era and in global competition.
3. Employment: It is also concerned in providing the education to individuals in order to
give job to people who are interested in this field.
Illustration 4: Organizational Behavior of a Theme Park
Source : (Introduction to Hospitality Management, 2017)

 British Institute of Inn keeping: It is also known as BII. It helps the licensed hospitality
industries which are operating in UK. BII plays an important role for this sector. For
example: Charitable Status: BII also acts as a foundation which works for the promotion of
standards of hospitality industry. It also helps to manage to develop a profitable business
for the individuals working in this sector (Lederer, Van Niekerk, and Okumus, 2017).
 Advising: BII also gives advice on legal, financial and licensing aspects of business of
hospitality industry (Kim, Vogt, and Knutson, 2015).
 Springboard UK: This organization basically helps individuals and unemployed who
need a job or career for betterment of their life's standards. Their main aim is to promote
this sector as a most suitable sector to work. Another major function of this organization
is to work for human resources and social responsibility needs to raise funds for charity
(Hospitality Staff Roles, Responsibilities and Qualifications, 2017).
TASK 2
2.1 Assessing the Staffing requirements of different Hospitality Businesses
These staff requirements are varies for different organizations due to various needs of
every business. It is a process of recruiting candidates who are capable of giving their best for the
organization in which they are working. Hospitality is one of the biggest branches of the
industries working in various departments and so, their staff requirements are also diverse. For
example:
 Executive Managers,
 Banquets,
 Chefs,
 Event Managers,
 F & B managers,
 Finance managers,
 Receptionist,
 General Managers,
 House keepers,
 Sales Manager,

 Marketing manager, etc.
All these recruitments process of the organization should be done very carefully as it has
a direct effect on their functionality. For this, proper interview has to be done by the HR
department. Giving them proper training to understand their work more accurately (Lopes,
2016).
2.2 Different Roles, responsibilities and qualification requirements for hospitality staff
It is very important for the hospitality industry to properly fulfill their roles and
responsibilities which has been assigned to them in the organization. It should be ensured by the
management team that every employee is giving their best service to the customers. There are
different staff members who works in the hospitality industry, for example, manager, supervisor,
Illustration 5: Different Staffing Requirements in Organization
Source : (Contemporary Hospitality Industry, 2018)

management trainee, etc. All these employees have different roles and responsibilities in the
organization to follow, which is explained below,
 Managers : Important responsibility of a manager in the company is to understand and
make plans for sales and profits, and motivate the staff members to work more
effectively. He also helps in hiring new staff employees. Minimum qualification for a
manager is a certificate or an associate degree, must have organizational, administrative
and interpersonal skills.
 Supervisor : Their main work in the organization is to look after the operations, giving
training to the employees. Minimum qualification for this post is that, they must have a
hotel management degree. Should posses good communication skills and must have a
good work experience in the respective field (Pizam, Shapoval, and Ellis, 2016).
 Operational Staff members : Role of operational staff in the hotel is to assist the daily
responsibilities given to them. Minimum qualification for this post is that he should have
certification in the area in which they are interested.
TASK 3
3.1 Analyzing Operational, Managerial and Legislative issues resulting from recent
developments
In this industry, there are various issues related to operational, legal or managerial in the
organization. These factors affect the management of this sectors in several ways, for example,
 Managerial Issues : Responsibility of manager in the firm is very important in order to
maintain the proper functioning. Some managerial issues which can arise, are as follows,
1. There is poor organization of planning and administration of resources in hotel,
2. There is very high employee turnover,
3. There is a poor communication gap,
4. There is incomplete implementation and evaluation, etc
 Operational Issues : There are so many operational issues which can arise in the
organization (Radojevic, Stanisic, and Stanic, 2015). Such as,
1. There is a lack of focus in the organization,
2. Shortage of funds in the organization,
3. Poor results from products and services, etc.

 Legislative Issues : There are a variety of legislation that has a great impact on their
employers, workers and customers. This can be overcome by factors, for example,
cleaning, their surroundings and security of the organization. Cleanliness or Hygiene
factors is the main factor which affects the hospitality industry most. They should
consider it very carefully. Security measures or issues should also be considered by the
hospitality business.
3.2 Current image of the hospitality industry
The current image of this sector is very exclusive and entertaining to work in and have a
great experience in terms of responsibilities. It is an industry which has a huge scope of career
choices to choose from. This industry faces a great impact of globalization on it. Hospitality
industry offer a chance to understand and become aware of various cultures existing in world.
Customer focus and culture help this industry to grow a lot, for example,
 Customer Focus and Culture : Customers plays a very important role in the hospitality
industry. If the organization is not fulfilling the requirement of their customers it can
affect them a lot. It is very important for every individual working in this industry to
maintain a proper communication in the organization in order to deliver right service to
right customer. There are a lot of change in the culture of the people which should be
carefully considered by the organization.
TASK 4
4.1 Predictions for Potential trends and Developments in Hospitality Industry
There is high competition in this sector which has become very intense which makes
other organizations to come up with something new ideas for their customers (Organizational
Structure of a Hotel, 2018). This industry is growing very fast in the market with rapid change in
the business environment and in travel and tourism sectors. There are various potential trends in
this sector which are discussed in detail, as follows,
 Change in Lifestyle : This is the main trend which can have a great impact on hospitality
sector as it is highly influenced by the changing lifestyles of their customers. For
example, there is a huge trend of boutique hotels in London which provides a unique
experience to their customers. So, there are various underlying changes which has to be
accomplished in the coming years by the hospitality industry.

 Impact of Social Media : It is highly influenced with the increase in the use of social
media by their customers. These industries can use this service to promote their services
in the market by using tools like, Facebook and twitter (Ryan, 2015).
 Focus on Eco-friendly Management : Hospitality industry should focus on the
environment. They should ensure not to harm it.
4.2 Impact analysis for the predicted trends and developments in Hospitality Industry
There is a huge scope for the development of this industry in UK. By implementing the
continuous change in the trends in their system will help them to increase their growth in the
target market. Various predicted trends and development which can arise in the future, are as
follows,
 Gourmet Fast Food : By introducing this food style in the hospitality sector will ensure
the success of their business in the market, as it a famous trend which is liked by many
people.
 Street Food : It has a great influence on the hospitality industry as most people in UK
tends to prefer street food more because it is cheaper in terms of price and is easily
available in the market.
 Fusion Cooking : Experimenting with the food items will help the industry to gain
popularity among people.
The impact of these factors on existing and new businesses has affected them a lot. By
implementing these changes in the industry will help them to grow overall (Solnet, Kralj, and
Baum, 2015).
CONCLUSION
From the above report it can be concluded that contemporary hospitality industry offers a
huge opportunity for people who are interested in working in this sector. This report also focuses
on the various professional bodies working in this sector, such as, British hospitality association,
British institute of inn keeping, springboard UK, etc. It also focuses on the current trends and
future opportunities which is being implemented in this industry to grow.

REFERENCES
Books and Journals
Claveria, O., Monte, E. and Torra, S., 2015. A new forecasting approach for the hospitality
industry. International Journal of Contemporary Hospitality Management. 27(7). pp.1520-
1538.
Bolfing, C. P. and Cadotte, E. R., 2015. How Useful are Customer Satisfaction Processes for
Hotel Industry Positioning Strategies?. In Proceedings of the 1988 Academy of Marketing
Science (AMS) Annual Conference.pp. 82-86. Springer, Cham.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal
of Contemporary Hospitality Management. 28(1). pp.36-67.
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
Contemporary Hospitality Management. 27(3). pp.379-414.
Kim, M., Vogt, C. A. and Knutson, B. J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism Research.
39(2). pp.170-197.
Lederer, J., Van Niekerk, M. and Okumus, F., 2017. Burnout in the Hospitality Industry: The
Case of a Restaurant Manager. HOSPITALITY & TOURISM. p.81.
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
Pizam, A., Shapoval, V. and Ellis, T., 2016. Customer satisfaction and its measurement in
hospitality enterprises: a revisit and update. International Journal of Contemporary
Hospitality Management, 28(1), pp.2-35.
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.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR
professional in the hospitality industry. Journal of Hospitality & Tourism Research. 39(2).
pp.271-292.

Online
Hospitality Staff Roles, Responsibilities and Qualifications. 2017. [Online]. Available
through : <https://www.ukessays.com/essays/tourism/hospitality-staff-roles-
responsibilities-3469.php>
Organizational Structure of a Hotel. 2018. [Online]. Available through :
<http://smallbusiness.chron.com/organizational-structure-hotel-3809.html>