Contemporary Hospitality Industry

This document provides an overview of the contemporary hospitality industry, including the types of businesses, operational and functional departments, contribution to the economy, operational roles, required skills, and a PESTLE analysis.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of business in hospitality industry...............................................................................1
P2 Operational and functional departments of hospitality business...........................................2
P3 Contribution of hospitality industry in the economy.............................................................3
TASK 2............................................................................................................................................4
P4 Operational roles in context of hospitality business..............................................................4
P5 Skills that are required to perform the role in hospitality industry and its current shortage..5
TASK 3............................................................................................................................................5
P6 PESTLE analysis of hospitality industry ........................................................................5
P7 SWOT analysis of travel-lodge and its impact on decision making process.........................7
TASK 4............................................................................................................................................7
P8 Current trends in hospitality industry....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry can be defined as service sector which provide transitional services
to its customers. This includes food and beverage, entertainment, travel and tourism factor. The
hospitality sector work as bridge between host and guest. In present scenario hospitality sector
includes different services that include lodging, accommodation, drinks, entertainment place etc.
through which they contribute for the development of economic condition of country. The
organisation chosen for this assignment is written in context of Tarvel-lodge which is a well
recognise for its hospitality services and operate their business among overall world. Is
headquartered is situated in Thame, UK. For this report PESTLE and SWOT analysis are
covered in context of hospitality industry (Wilson, Murphy and Fierro, 2012). Along with these
the contribution of hospitality business in local, national and global economic will be covered in
this report. Further in these report different types of skills are discuss that are required to
complete job responsibility in hospitality sector.
TASK 1
P1 Types of business in hospitality industry
The term business includes different types of products and services that are offer by an
organisation in the market to earn profits. This task covers several categories of business that
deals under hospitality industry are given below:
Lodging and accommodation- The accommodation is the wide concept in context of
service sector it includes various services to paying guest or customers that involve bed and
breakfast, resorts and suites. For example- the major activity that performs by Travel & Lodge is
to provide shelter which determines that they maintain privacy of their guests (Wakie, 2015).
Food and Beverage- This Food departments includes several factors such cooking of
food, storage of raw material and food transportation through which they provide delicious food
to their customers. Like in Travel-lodge food department represent their food with an attractive
presentation which governs that organisation is aware about health of customers.
Travel and tourism- In present market trends the major task that is performed by
hospitality organisation is providing efficient travel and tourist services to customers in which
they provide brief details about local culture of country. Like travel lodge provide many
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opportunities for society individuals that includes employment generation, foreign exchange etc.
It signify that they establish themselves as backbone for economy of country.
Entertainment industry- Major source of income for hospitality organisation is to attract
more customers for their business. All individuals who purchase hospitality service are
considered as travellers that travel to new place in order to spend some time in performing fun
activities. This is predicated as opportunity by management of travel lodge so they provide horse
riding, mountain biking and other adventurous activities which signify that entertainment is
crucial part for hospitality sector (Tran, 2018).
P2 Operational and functional departments of hospitality business
There are different types of functions are performed by operational and functional
department that helps an organisation to achieve their goal. Some of this functions are given
below.
Functional department- These type of department works for an organisation to increase their
performance and productivity of its operations. Some of this are mention as below:
Marketing and sales- This department is needed for each and every organisation either
they operate their business in products or service industry. Marketing team plays an vital role in
order to increase the sale of services for the hospitality organisation. In context of Travel-lodge
the major task performed by marketing team is to converting the prospects into leads through
creative advertising so that organisation earn more revenue for their business.
Financial department- The primary function that is performed by financial department
of an organisation is to ensure the financial stability of an organisation. For this they develops
cash and fund flow statement, profit and loss account for an organisation which determines
availability of cash is crucial factor for an organisation to start new project (Salvioni, 2016).
Operational department- Functions that are performed by an operational department of an
organisation is to complete their daily activities or functions.
Housekeeping- In hospitality industry neat and cleans rooms, floor and proper
arrangements of items are the crucial factors that impact on business performance which signify
the importance of housekeeping in an organisation. Travel lodge hire or recruit effective and
skilled employees which helps them to manage their infrastructure hygiene and clean.
Administration- Manager or officer of an administration department plays the primary
role in an organisation because they work as bridge by maintaining healthy relations with all
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departments. Within circumstance of travel-lodge administrative team play an essential role as
they work to emerge and combine all activities of organisation in order to achieve similar goal
for the organisation.
P3 Contribution of hospitality industry in the economy
Travel and tourism industry is growing with rapid face in an organisation which states
service sectors are generating sufficient revenues from customers. Some of the major impact on
economy of country is mention as follow (Sainaghi, Phillips and Corti 2013):
Local economy- Local economy of a particular region will be more benefited with
implementation of hospitality organisation. It is stated by the government of UK and Europe that
if a nation want to develops that they need to explore more places that increases number of
visitors through which they generate more income from customers. Like Travel-lodge provides
employment opportunity to local people by offering different job roles to them. For the
development of local people management contribute beyond their limits by paying tax that help
to raise the living standards of society.
National economy- For an organisation the stability of the economic condition of the
country or nation is the major factor that influence on the decision making of society. It includes
several factors such as policy and law that relates with monetary terms are included under this
sector. Fiscal policy, tax collection and GDP etc. are part of national economy of country. In
recent years travel lodge and other hotels increases the 4.9% rate of GDP in overall UK which
determines that production and service sectors are increasing rapidly which work as positive
factor for organisation
International economy- Travel and tourism sector is the broad factor which involves
large number of service in an organisation such as tours of different countries. Similarly now a
days customers also go beyond their country with purpose of travelling and to explore business
activities (Niewiadomski, 2014). The authority of British hospitality association states that they
are more than 700 million transaction take place in UK with other countries which signify that
hospitality organisation are working as backbone for economic condition of country.
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TASK 2
P4 Operational roles in context of hospitality business
The role of operation manager is essential in each type of organisation because they hold
upper position which governs that their suggestion impact on decision of management. Along
with these they monitor the role of performance of each employee. Some roles are given below:
Role of division manager- Division manager or officer plays vital role in the
management. They are responsible to control the activities that are performed in the organisation.
Apart from this they also guide employees so that put their efforts in right direction. In context of
travel-lodge operational manager work with motive to increase the satisfaction of customers by
providing them delicious food, quick service etc. through which organisation match their product
with customers expectation.
Role of housekeeping- Department of house-keeping work to increase the efficiency of
organisations. It is the responsibility of house-keeping team to neat and cleans the rooms of
hotel. In context of travel lodge they identify the needs of customers and if the number of
workforce is decreases then they implement short term strategy such as recruiting more
workforce through which it is easy for organisation to fulfil the needs of customers effectively.
Role of front desk- The people of front desk work as the bridge between all functions of
company. In hospitality sector they are first persons who interact with the customers and guest.
For this it is necessary for travel-lodge that they recruit effective staff through which it is easy
for them to generate more leads for the organisation. This signify that front desk employees play
integral role in the organisation for which it is easy for organisation to manage all functions
together (Mutanga, Gandiwa and Muboko, 2017).
Role of food department- Travel-lodge provide effective services as well as products to
their customers. The food department has large variety of products through which they provide
creative and healthy dishes to their customers. For this it is easy for organisation in case to
generate more revenue from other sources. It includes restaurants, events and catering etc. for
these travel-lodge hire chef which are responsible to manage all kitchen staff and food. The
combination between product and service industry helps hospitality sector to gain competitive
edge from rivals.
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P5 Skills that are required to perform the role in hospitality industry and its current shortage
In hospitality industry huge number of employees that relates with different background
are working together to achieve similar goal which determines that skills are necessary for an
employee to perform the job. Some essential skills are mention as below:
Team work- Employees or individuals need to develop the skill to organise and manage
their work along with other members of the organisation. In hospitality industry different types
of services are offer by organisation to their customers (Lopes, 2016). In context of travel-lodge
the management provide training to their employees through which they generate skills like time
management and coordination these helps them to complete their work with in pre-determined
period. Along with these it also helps management to complete their work in organised way
through completing it sequential and systematic manner. While in present scenario employees
are lack form this skill because of low faith and conflicts among them.
Enthusiasm- In an hospitality industry, management hire those employees that perform
their work with more energy. The service sector includes the job of different factors in which
they organisation and employees has to perform their responsibilities and roles after the sale of
product or service also. Like in circumstances of travel-lodge they took regular follow up of their
customers which determines that it energy is crucial factor for employees. While in present
scenario employees face difficulties to complete their work because there is lack of motivation
is present in employees this create hindrance in their performance.
Communication skill- First factor that is essential in an organisation and employees who
operate their business in hospitality sector is high communication skills which helps them to
generate more productive results in the organisation. In context of travel-lodge they are operating
their business in UK which helps them recruit highly qualified and skilled employees through
which it is easy for them to interact with guest effectively (LAODE and et. al., 2017).
TASK 3
P6 PESTLE analysis of hospitality industry
PESTLE analysis helps the management of Travel-lodge to predict the environmental
conditions of country. Some factors that impact on service sector is as follow:
Political factor- Policy, laws, rules and regulations that are generated or decide by the
ruling government of country are included in these factors. Like tax policy, foreign trade policy
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are included in this factor. Travel-lodge follow all the rules which are formulated by government
to expand their business in other countries also. For this management target those countries
which have liberal policy for an hospitality industry.
Economical- Financial decisions of an country that includes interest and inflation rate,
savings, exchange rate etc. are included under economic factors through which determines the
economic stability of the country. In context of hospitality industry, it is growing with rapid face
so the management of travel-lodge invest in those countries are developed because it increases
their market area (King, 2015).
Social factor- The method or way by which the society perform and complete their work
by implementing their value and attitude in the processing activity is included under social
factor. In context of travel-lodge they need to perform activities or operations that does not
impact the belief of society if they do that then it negatively impact on business operations.
Technological factor- In present market conditions, technology is an effective tool which
helps an organisation to increase value in their service or product. Like in hospitality sector there
is cut throat competition is present in industry. In the context of Travel-lodge technological
factor such as Wi-Fi, security system, automatic doors helps an organisation to increase their
customer and expand their market.
Environmental factors- Each and every country has different rules, norms and policy
that protect the natural environment of country. In hospitality sector it is essential for an
organisation to follow the rules of government because it helps an organisation to sustain in
specific country (Huang, 2013). Along with these it also attract customers if any country has
similar green and healthy environment. In context of travel-lodge they organise and manage
different CSR activities that helps them to increase their goodwill in industry.
Legal factors- Laws and legislation, rules, policy that are developed by the country to
maintain fair trade in market and between industry are included under legal factor. Through these
they monitor that organisation are operating their business in ethical way which provide equal
rights to all companies. It is beneficial for travel-lodge because it provides them opportunity to
operate their business in healthy working environment.
PESTLE analysis of connect catering
Political factor- UK is developed country therefore the political conditions of them are
stable which governs that they are beneficial for industry. Connect catering is successful
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organisation which achieve high growth in UK because of government support. While the other
fact is that if company does not follow policy formulated by government then ruling party is in
position to stop their operations.
Economical factor- After the Brexit there are different changes are formulated in the
economy of UK. It considered that there are different challenges are faced by government and
industry. Therefore connect catering implement effective strategy in order to overcome from low
economic condition.
Social factor- Hospitality business is developed for the society which determines that
individuals are the major element of service industry. Management of connect catering is focused
on satisfying the needs of customers by providing effective hospitality services to them. While
the other issue if organisation services impacts on society individuals negatively then they
boycott their products.
Technological factor- In present scenario all business adopted latest technology that
helps them to expand their business among overall world. In context of connect catering
technology helps them to grow their business digitally. Another factor is that it is expensive for
organisation to purchase new technology.
Environmental factor- In recent years environment safety is the major factor that impacts
on organisations performance. Along with these they also create positive results for an country.
Connect catering is operating their business in service industry so it is essential for them not
exploit the resources of the country.
Legal factor- Each country develops some laws that are essential for them to protect the
interest of local industry. Like in each country foreign as well as local organisation both operates
their business due to which it is essential for connect catering to follow all laws that are
generated by government.
P7 SWOT analysis of travel-lodge and its impact on decision making process
SWOT analysis help management of travel-lodge to increase their strength and to
overcome form weaknesses by predicting them. Along with these it helps to explore
opportunities and threats in the market.
Strengths- the below mention strength impact positively on travel-lodge and its operations
Travel-lodge has major strength of their price they helps them to increase their market by
offering rooms to all segment of customers.
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The management of travel-lodge has tie-up and develop agreement with different small budget
hotel. It helps them to increase their market base and customers (Bruns-Smith and et. al.,
2015).
Weaknesses- It impacts in negative way for an organisation which creates barrier in their
productivity.
 Travel-lodge has increases their business at global market. It increases the range of
different products and services in the market but similarly it also bring rigid and complex
structure that create barrier to achieve organisational goals and target. Due to tie up with small hotels it is difficult for organisation to provide effective services
according to the price that they charged from their customers.
Opportunities- are positive factors that helps an organisation to increase their business. Organisation or NGO that work for safety of environment creates an opportunity for
travel-lodge as they establish themselves go green infrastructure. This helps them to
represent them as eco-friendly organisation (Gikutha, 2017).
Threats- helps the management of Travel-lodge to formulate strategy through which they reduce
risk and loss for organisation. Management of travel-lodge expanded their business in local market which include
Britain and Europe. While hospitality industry is expanded themselves at global market
which increases competition in market.
SWOT analysis of connect catering
Strength
 Principle of connect catering service are strong due to which they provide effective
services to their customers.
 Connect catering covers wide area of UK market which determines that they strong
customer base. Employees of connect catering are intelligent and skilled that increases satisfaction level
of customers.
Weaknesses
 Connect catering does not maintain positive relations with suppliers and its partners as it
creates issue for them.
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 The support sales action of connect catering is weak that creates problems for them to
produce effective outcome for the organisation. Connect catering follows traditional business structure and strategy that does not match
with present market condition.
Opportunities
 Research team of connect catering is strong that helps that helps to understand whole
market conditions and predict opportunities that exists in market.
 Organisation has alternative to changes their model that help to attract more customers
by formulating effective strategy. Restructuring helps the organisation to complete their business at global that increases its
market size.
Threats
 Their is high competition exists in the hospitality industry because industry is expanding
day by day.
 Demand of customers are hard to match by organisation because it is changes on regular
bases.
 It is difficult for organisation to cover their cost because hospitality industry is price
competitive.
By the above SWOT analysis it is evaluated or measured that there is high competition
exists in UK hospitality industry due to which organisation faces different hindrances that creates
hindrances to perform their activities. So it is essential for connect catering to analysis their
strength and weakness to sustain in market for longer period. While travel-lodge is operating
their business at global level it signifies that by increase strength helps them to explore
opportunities that exists in market.
TASK 4
P8 Current trends in hospitality industry
Different trends that are follow by organisation which are operating their business in
hospitality sector are as follow:
Health and well being- In present scenario guest are aware about their health and fitness.
So they demand or search for an hotel that is equipped with gym, spa and pool etc. The increased
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number of travellers are asking for wellness options. Like travel provide gym and pool in each
resort and hotel of them which signify that trends impacts on hospitality business (Ali, Amin and
Cobanoglu, 2016)
Technology- The constant connectivity and seamless technology helps an organisation to
develop goals and maintain friendly relations beyond the country. Like many hotels such as Aria
offer their guest with high tech card that detect the presence of their guest and opens the gate
before they reach their destination.
Sustainable rules- Eco-friendly and safety practice of environment are becoming the
norms in each industry. For this context of hospitality industry it is essential for them to perform
their activities within the framework of surroundings and organisation. Example- Travel-lodge
employees use the energy resources that are renewable and save environment from harmful
gases. Like for development of electricity they use solar panel technique to operate their air-
conditioner, light, lamps etc. which govern management use resources in optimum way.
Digitalised guest experience- In present scenario applications are the major factor that
impact on business. In context of these it is hospitality business adopt digital method to increase
their business operations.
Food trend- In service industry such as hospitality food is only the tangible product that
is provided to customer. So it is essential for travel-lodge to provide effective food to its
customers in order to generate loyalty in them towards organisation.
Sustainability- With the increasing number of hotels buyer found different alternatives in
order to switch from one organisation to another. Therefore organisation organising and
performing different activities in order to retain their position in global market.
All the above trends are evaluated by the organisation to find out whether their operations
match with particular trends or not. For this they managed their goals and modify their strategy
in order to provide effective services to customers.
CONCLUSION
According to the above report it is concluded that there are several types of work under
service sector specifically in hospitality business. This includes catering, restaurant, events,
lodging and accommodation etc. that helps to improve the economic condition of country by
providing different employment and business opportunities to society individuals. Along with
these some skills are mention that are needed in an employee to complete the job role in
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hospitality industry. Further PESTLE and SOWT are implemented in order to predict market
conditions and environment that helps an organisation to follow potential trends that are present
in hospitality industry.
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Book and Journal
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