Contemporary Hospitality Industry

This document provides an overview of the contemporary hospitality industry. It discusses the different types of businesses within the industry and the products and services they offer. It also explores the range of operational and functional departments and the roles performed within the industry. The document further analyzes the contribution of the hospitality industry to the local, national, and international economies. It also examines the macro environment factors and their impacts on the industry. Finally, it conducts a SWOT analysis of a hospitality organization.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Different types of business within hospitality and products and services offered.................4
P2 Range of operational and functional department...................................................................5
P3 Contribution of the hospitality industry to local, national and international economies.......5
TASK 2............................................................................................................................................6
P4 Range of different operational roles within industry............................................................6
TASK 3 ...........................................................................................................................................8
P6 Macro environment factors and their impacts on hospitality industry..................................8
P7 SWOT analysis of a hospitality organisation.......................................................................10
TASK 4..........................................................................................................................................11
P8 Analysis the implication of current and potential trends affecting the hospitality industry in
UK.............................................................................................................................................11
CONCLUSION..............................................................................................................................12
REFFERENCES ...........................................................................................................................12

INTRODUCTION
Hospitality industry is the service based industry which provides varieties of services to
the customer to provide them a delightful experience against the value paid by them. It is the
fastest growing industry which is divided into three categories such as food and beverage, travel
and transportation and lodging and accommodation services. This report is based on
communicating large number of students towards the career in hospitality industry while
working in a communication department at a large exhibition venue. The chose hospitality
industry is Whit Bread which is a multinational hotel and a restaurant organisation headquartered
in Bedfordshire, United Kingdom (Boella and Goss-Turner, 2012). Its largest division is Premier
Inn which is the largest branded hotel in UK. This report will throw lights on the various
categories of business within the hospitality sector and also determines its contribution towards
the national and international economy. It also discusses interrelationship among various
departments and the roles performed by the mangers to manage smooth flow of business
activities. Moreover Swot and PESTLE analysis of the industry is also conducted so as to
analyse the external and the internal factors and determines the existing and future trends within
the business.
TASK 1
P1 Different types of business within hospitality and products and services offered
Hospitality industry is categorised into three basic categories such as lodging and
accommodation, food and beverage and travel and tourism services. These sectors provides
various products and services to the customers so as fulfil their needs and desires. Therefore
different types of business within the hospitality sector are described as follows-
Accommodation Services- This type of business within the hospitality sector provides services
to the tourist for staying in the form of hotels, and resorts. Their main purpose is to provide
services that provides comfort along with the value of money (Brotherton, 2012).
Food and Beverage Business- This section of hospitality sector offers tourist the facilities of
food and beverage along with their stay. It provider various categories of business such as-
 Quick Service Establishment- Under this quick services are offered to the customers such
as in the form of fast food along with less of table service.

 Catering service- This type of service caters to the needs of mass customers and serve the
special purpose such as wedding and birthday parties.
 Full service- This provides the customers with full service or full meal at their table so
that customer can enjoy the food as per order placed by them.
Travel and Tourism- Along with food and beverage, hospitality industry also provides travel
and transportation facilities to the large number of customer such as-
 Cruise service-It provides facilities of travelling via sea to the customers and can enjoy
food and beverage over there and can enjoy their leisure time.
 Night club service- This provide facility of dancing, singing and drinking while enjoying
with their friends at night club during their tour (Chon and Yu, 2012).
P2 Range of operational and functional department
Various operational and functional departments works in a interrelated manner and
therefore leads to smooth flow of business activities, thereby providing quality services to the
tourists.
Operational Departments
 Housekeeping Department- This is the division of the operational department which is
responsible for maintenance and cleanliness of the room as well as the hotel surroundings
and the premises so as to attract customers towards the hotel.
 Front office- This is the department which performs the operational function of
interacting with employees and customers as well as solving their complaints. It also
deals with the payment work and also works in coordination with the housekeeping
department so as to check whether rooms are cleaned or not and also keeps record of
check in and checkout of the customers.
Functional Departments-
Functional Department of Whitbread has the responsibility to function the marketing,
finance and perform the role of recruitment and selection of employees. Various departments are
discussed as follows-
 HR Department- Hr department within the respective organisation is responsible for
proper recruitment and selection of the candidates as well as firing them if they not work
properly towards maximising profits.

 Finance Department- Finance Department is responsible for monitoring the funds and
providing it to various departments so as to function business activities in a proper
manner. It also prepares financial accounts so as to analyse the financial position of the
respective hotel.
P3 Contribution of the hospitality industry to local, national and international economies
As hospitality industry is going at a faster pace, which offers various products and
services to the customers all over the globe. Therefore it leads to enhancement of GDP, which
directly contributes towards the local, national and international economy.
Local Economy- As hospitality sector offers three categories of business which attracts
the tourists towards those and leads to the construction and building of roads and infrastructure
which indirectly contributes to the development of the local economy and also provides
enhanced transportation services which aims at contributing to the national economy (Fakharyan
and et.al., 2014.).
National- By providing various products and services to the customer it needs various
employees to manage the business activities and offers the same. This leads to create various
employment opportunities for the employees and leads towards the enhancing the growth of the
social economy.
International Level- Within hospitality business, there are various hotels and
restaurants which is operating their branches all over the world. This leads the tourist to take the
advantage of availing all the services through out the nation and leads to the integration and
collaboration of the world economy. Moreover it enhances the growth of the nation by
eradicating poverty and unemployment.
M1 Interrelationships of the operational and functional units within a chosen hospitality business
Operational and Functional units within the cited hotels works in interrelation to each
other as finance department work in coordination with purchase department as provide funds
against the purchase products and F&B department works in interrelation with Hr Department as
manger of food department provides information to the HR at Whitbread to recruit specialised
chef. Therefore HR department recruits in the same demand and manges the performance of
business activities in a proper manner.
DI Franchising and licensing agreements has influenced the global development of the
hospitality industry

With the increase in financing and licensing agreements by the branded hospitality
business such as McDonald, Burger king have started franchising their business throughout the
world, this leads to the customer to avail the services through out the nation, therefore helps in
the growth and development of the global world, thereby contributing to enhanced employment
opportunities.
TASK 2
P4 Range of different operational roles within industry
There are various operational roles performed within the respective hospitality industry
which provide qualifies services to its customers. Operation roles are discussed as –
 Operational role of housekeeping Department- Housekeeping Department within the
hospitality sector is responsible for maintaining cleanliness and hygiene in the room as
well as performs the room of cleaning bed sheets and towels etc which are provided to
the customers. Hence proper quality of service will attract the customers towards the
hotel and will lead to maximization of profits (Gin Choi, Kwon and Kim, 2013).
 Operational role of Food and Beverage department- Manager at Food and beverage is
responsible for providing high quality hygiene good products to its customers so as to
ensure with safety and health of the customers. Moreover their role is to provide the
customers with prepared food facilities according to their demand and requirements.
 Operational role as Receptionist- Receptionist works under the front office department
which performs the role of communicating with the tourist by a way of providing answers
regarding their complaints as well as confirms their reservation through telephone call
and mail. It monitors and keeps records of the check in and checkout timing for the
customers.
These are the various operational roles performed within the hospitality sector assist in
providing better services to the customers thereby enhances goodwill of the hotel in the
respective hotel industry.
P5 Review the skills requirements for the roles mentioned above for hospitality industries

In order to perform the above operational roles it necessary for the employees to posses
certain skills so as to function business activities in a proper manner. Various skills needed
within the hospitality sector are described as follows-
 Communication Skills- It is necessary for employees within hospitality sector to have
proper communication skills so as to interact with their clients in a proper manner. This
skill is majorly required by receptionist so as to communicate with the clients and p
departments provides proper information to them as well as require communication skills
within all the departments so that employees can properly communicate with each other
leading to functioning of business activities in a proper manner (Kandampully, Zhang
and Bilgihan, 2015).
 Supervising Skills- This skill is required by the managers within the hotel departments
so as to provide guidance and instruction to the employees so that they can work business
activities in a proper manner. Managers at Housekeeping and food and beverage
department require this skill in effective way so as to guide its superiors towards effective
working.
 Management skills- This skill is concerned to managing all the tasks in a proper manner
so as to perform multi task at a single time. This skill is majorly required by the
housekeeping department so as to manage the whole task in a proper manner so that
better services can be provided to the customer which meets their satisfaction level.
TASK 3
P6 Macro environment factors and their impacts on hospitality industry
In order to analyse the impact of external environmental factors towards hospitality
organization, it is necessary to conduct PESTLE analysis it is described as follows-
 Political- Political factors is concerned with the political rules, regulation and taxation
policy imposed by the government which affects functioning of the hospitality industry.
As there is stable rules and regulations in UK, it enhances growth of hospitality
organization but as Whitbread operates in various countries, it faces the problem of trade
regulations and tariffs of providing consumer services, this creates problem for the

company to operate and hinders growth of the respective hospitality business. For this
uniform structure should be followed in conducting business activities globally.
 Social- As with the changes in demand and lifestyle of the people, it is necessary for
hospitality organization to provide varied services to the customers in order to fulfill their
demands. Different varieties of food as well as all types of rooms should be available so
as to target high and medium class customers. This will enhance success of the respective
hospitality business leads to reduced profits and productivity for the business.
 Economic- This determines the economic rate of the country. Economic condition with
the country as well as the interest rate, exchange rate and inflation rate of the country. As
with the inflation in Uk, it has reduced the purchasing power of the customers and
reduced the demand for Whit bread services. Therefore affordable services should be
provided to the customers which meet their satisfaction level and therefore leads to
success and growth of the hospitality organization (Legrand, Chen and Sloan, 2013).
 Technological- With the increase in technological advancements it is necessary for the
hospitality organization to use updated and modernized equipments in hotel so as to meet
the satisfaction level of the customers. It is necessary for Whitbread hotel to provide
customers with online booking and cancellation facilities all around the globe as well as
finger prints check in checkout for the tourism so as to provide them with ease in
handling customer services. This will attract the customers towards the hotel and leads to
growth and success of business; otherwise it hampers the growth and profitability of the
respective organization.
 Legal- It is concerned with the legal laws and legislations that has a impact over the
hospitality organization. Legal laws are related to the health and safety of the tourist as
well as provide compensation to the employees according to the predetermined structure.
It is necessary for the respective hospitality organization to follow appropriate laws such
as maintaining health and safety of the individual by providing food services with proper
hygiene as well as provide equal justice to the employees regarding fair treatment of
salaries. This will motivate the employees to perform better as well as attracts the
maximization of profits.

 Environmental- It is concerned with functioning the business activities in such a manner
that reduces the negative impact on the environment moreover with the impact on the
environmental changes it affects the growth of hospitality organization. As with the
climatic changes due to heavy rains it disrupt the demand of the hotel services and leads
to reduced profitability for the respective hospitality organization. Therefore during this
situation it is necessary for the hotel to start cab services at lower services so as attract
larger number of customers and leads to maximization of profits over long term.
P7 SWOT analysis of a hospitality organisation
In order to analyse the internal strengths and weakness, Swot analysis should be
conducted for the hospitality organization so as identify strengths and weakness within the
hospitality organization so that necessary decisions can be taken so as to reduce the weakness
and also helps in identifying business opportunities to maximize profitability and sustainability
of the business organization and threats can also be analysed so as to take effective decision
against the same. SWOT analysis of Whitbread hotel is described as follows-
STRENGTHS-
 Respective hotel has a enhanced brand image in the market which attracts larger
number of customers towards it and maximizes the profitability of the organization.
 Respective hotel industry follows eco friendly policies in providing services to the
customers such as use of green parks and reduced waste management by less use of
paper work so as to improve its profit margins and maintains sustainability of the
business (Mo, Bae and Blum, 2013).
WEAKNESSES-
 It has limited level of global presence which makes it difficult for the respective
organization to attract larger number of customers towards it and minimize it
profit margins.
 Political condition in various countries affects the operation of the Whitbread
hotel has a impact on the growth and create complexities in the functioning of the
business activities.
OPPORTUNITIES-

 Respective country can expand its business in other countries so as to target larger
customer base which will help in maximizing its profit margins.
 Whitbread hotel can provide various offers and discounts to the customer so as to
enhance its competitiveness over rival companies (Tesone, 2012).
Threat –
 It has threat of large competition from its rival companies which has a impact upon
the success of the hospitality organization.
 Due to the updating technologies, it proves threat for the company to keeps its
technology changing within short period of time and proves costly for the company.
TASK 4
P8 Analysis the implication of current and potential trends affecting the hospitality industry in
UK
Ongoing and Potential Trends-
Therefore to match the level of competition and maintain its sustainability in the
competitive market place, it is necessary for the organization to function its business activities
according to the ongoing trends in the market and therefore to adopt the potential trends. Some
of the current and potential trends within the hospitality sector is described as follows-
Current Trends- With the ongoing changing trends within the hospitality industry it is
necessary for the respective hotel to adopt recent current trends which are described as follows-
 Advanced Technology- It is necessary for Whitbread hotel to adapt to recent technology,
ie to online booking and cancellation facilities for its tourist as well as face recognisation
of the tourist at the time of check in and front print locks on their room. This will attract
customers towards the service of the hotel and would lead to maximum of profitability
and productivity (Prud, homme andRaymond, 2013).
 Environment Protection- It is necessary for the respective hotel to function its business
activities in such a manner that doesn’t doesn’t have negative impact on the environment.
For this hotels should reduced their paper work and should do all work on software as
well as make uses of green bushes and gardens in their hotel premises so as to attract the

customers towards the hotel and will lead to maximization of profit. This will assist
Whitbread in maintaining sustainability in the complex business environment and
therefore to improve its profit margins by attracting larger customers towards the hotel.
Potential Trends- It is necessary for the respective hospitality industry to adopt future or the
potentials trends in functioning their business activities in a proper manner. Some of the potential
trends which the hospitality industry should adopt are as follows-
 Maintain health and safety of the tourists- This is the potential trend in which des
respective hotel should use such equipments inside the hotel premises and provides food
and beverage services with proper hygiene as per the requirements of the customers. This
will assist the employees within the hotel to work in a proper manner and gains the
attention of the tourist in taking services of the respective hotel(Suh, West and Shin,
2012).
 Digitalized and Customized Guest service- It is one of the potential trends within the
hospitality industry in which hotels are acquiring information about the guest needs,
demands and requirements so that specialized and customized services should be offered
to the customers and meet up their satisfaction level. This will leads to attraction of
customers towards the hotel and will lead to enhance its brand image in the market.
CONCLUSION
From the above report it has been concluded that , hospitality sector enhances the growth
of the nation by providing them various employment opportunities as well as eradicates poverty
from the nation. There are various types of business within the sector and performs their role in
proper interrelation with other departments. Moreover with the help of PESTLE and Swot
analysis, it provides an insight towards the internal and the external environmental factors and
helps manager towards taking effective decision.

REFFERENCES
Books and Journals
Boella, M. and Goss-Turner, S., 2012. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Brotherton, B. ed., 2012. International hospitality industry. Routledge.
Chon, K.S. and Yu, L., 2012. The international hospitality business: Management and
operations. Routledge.
Fakharyan and et.al., 2014. RETRACTED ARTICLE: Examining the Effect of Customer-to-
Customer Interactions on Satisfaction, Loyalty, and Word-of-Mouth Behaviors in the
Hospitality Industry: The Mediating Role of Personal Interaction Quality and Service
Atmospherics. Journal of Travel & Tourism Marketing. 31(5). pp.610-626.
Gin Choi, Y., Kwon, J. and Kim, W., 2013. Effects of attitudes vs experience of workplace fun
on employee behaviors: Focused on Generation Y in the hospitality
industry. International Journal of Contemporary Hospitality Management. 25(3).
pp.410-427.
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.
Legrand, W., Chen, J.S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Mo Kwon, J., Bae, J.I. and Blum, S.C., 2013. Mobile applications in the hospitality
industry.Journal of Hospitality and Tourism Technology. 4(1) pp.81-92.
Prud’homme, B. and Raymond, L., 2013. Sustainable development practices in the hospitality
industry: An empirical study of their impact on customer satisfaction and
intentions. International Journal of Hospitality Management. 34. pp.116-126.
Ruetzler, T., Baker, W., Reynolds, D., Taylor, J. and Allen, B., 2014. Perceptions of technical
skills required for successful management in the hospitality industry—An exploratory
study using conjoint analysis. International Journal of Hospitality Management.
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Suh, E., West, J.J. and Shin, J., 2012. Important competency requirements for managers in the
hospitality industry. Journal of hospitality, leisure, sport & tourism education. 11(2).
pp.101-112.
Tesone, D.V., 2012. Principles of management for the hospitality industry. Routledge.