Contemporary Hospitality Industry: Types of Business, Products, and Services

This document provides an overview of the contemporary hospitality industry, including the different types of businesses and the diverse range of products and services they offer. It explores the operational and functional departments within the industry and their interrelationships. The document also discusses the contribution of the hospitality industry to the local, national, and international economies, as well as the impact of franchising and licensing agreements on global development. Additionally, it examines the range of operational roles and the skills required in the industry, as well as the current skills shortages. Finally, the document assesses the PESTEL factors that affect the development of organizations operating within the hospitality industry.

Contemporary
Hospitality
Industry
Table of Contents

INTRODUCTION ..........................................................................................................................4
TASK 1............................................................................................................................................4
P1 Different types of business within hospitality industry and diverse products and services
they offer................................................................................................................................4
P2 Range of operational and functional departments.............................................................5
P3 Contribution of hospitality industry to local, national and international economies........6
Ml Review the interrelationships of operational and functional units within a chosen
hospitality business.................................................................................................................6
M2 Assess how the use of franchising and licensing agreements has influenced the global
development of the hospitality industry.................................................................................6
Dl Analyse how global growth, franchising and licensing developments have contributed to
the economic worth of the hospitality industry......................................................................7
TASK 2............................................................................................................................................7
P4 Range of different operational roles within hospitality industry.......................................7
P5 Examine skills required for roles within hospitality industry and current skills shortages8
M3 Review the skills gaps within the hospitality industry in relation to a range of different
operational roles.....................................................................................................................8
D2 Analyse the impact that skills gaps have on hospitality businesses and make valid
solutions for addressing these skills gaps...............................................................................8
TASK 3............................................................................................................................................9
P6 Assess PESTEL factors that affect the development of organisations operating within
hospitality industry.................................................................................................................9
P7 SWOT analysis for a hospitality business and review how this can inform decision-making
process..................................................................................................................................10
M4 Evaluate the impacts of external factors on the development of organisations operating
within the hospitality industry, using specific exam pies.....................................................11
TASK 4..........................................................................................................................................11
P8 Appraise implications of current and potential trends in hospitality industry providing a
range of specific examples...................................................................................................11
M5 The ability of a specific hospitality business to develop products and services to meet
current trends........................................................................................................................12

D3 Critically evaluate how external factors impact on current and potential trends and
developments in the hospitality industry using specific examples to demonstrate how the
industry has developed in response......................................................................................12
CONCLUSION .............................................................................................................................12
REFRENCES.................................................................................................................................14

INTRODUCTION
Hospitality industry refers to business which offer variety of services related to lodging,
food and beverages, theme park, event planning, transportation, travel and tourism and many
more. It is one of the fastest growing industry which serve their customers in order to fulfil their
need and requirement (Bharwani and Jauhari, 2013). Organization taken for this assignment is
Radisson Blu is founded in year 1960 and its headquarter is situated at Minneapolis, United State
as well as Brussels Belgium. Topics covered in this report are brief description about respective
industry like structure, scope, size etc. as well as it also focuses on skills that are essential for
working in this sector. Along with this, it also mentioned externals as well as internal factors
which will impact on hospitality sector. This report will also include issues which are currently
face by industry and it will also explain about current trends that may impact on respective
sector.
TASK 1
P1 Different types of business within hospitality industry and diverse products and services they
offer
The main objective of hospitality industry is to serve their potential customers in
effective manner in order to fulfil their need as well as requirement. It is one of the fastest
developing industry which provide opportunities for companies to expand their business at world
wide level (Boella and Goss, 2012). That will help in enhancing profitability ratio as well as
market shares. In respective industry there are various other departments or sub units which offer
diverse variety of products as well as services, some of them are mentioned below:- Restaurant: It refers to that hospitality business unit which aim is to provide products
and services like variety of food as well as beverage. Such as Italian, Mexican, traditional
and many more.
 Accommodation: According to this sector company provide facilities related to
accommodation and lodging. It can be in diverse variety such as luxury room, executive
room and many others. In addition to this this type of business also provide breakfast,
bed, matrices, room etc.

P2 Range of operational and functional departments
At every organization there are several numbers operation as well as functional
department which help in gaining huge profitability ratio and market shares. Some major
operational and functional of Radisson Blu are mentioned below:-
Operational Department- Main function of this department is to control and monitor procedure
which is conducted in an organization for accomplish work appropriately. These department also
help company in satisfying their customers that help in retaining them. Some major operational
department of Radisson Blu are given below:- Front Office- It plays an essential role at respective place because they directly contact to
customers in order to convince to stay at their hotel (Brotherton, 2012). They also
conduct some other work like attend phone call, do reservation or booking, solve issues
of customers etc.
 Housekeeping- The role of this department is to ensure cleanness as well as hygiene of
particular place. Moreover they also guaranteed that every customers or visitors get
proper services.
Functional Department- It refers to department who will ensure about planing and conducting
of work. Sub departments included in this are accounting, manufacturing, human resource,
marketing, research and development and so on. Some main functional department of Radisson
Blu are:- Sales and marketing- Main function of this department is to promote business of
respective hotel and attract customers to visit their hotel (Chen and Shen, 2012). They
done this through various advertising and promotional activities such as advertising by
digital and social media etc.
 Finance- This department will ensure about every department get proper finance for
conducting their work effectively. For this they develop budget which help company in
conducting their work in proper way.
These all departments are interrelated with each other in order to ensure that work is
conducted in specific manner for attain goal as well as satisfy customers. Their is effective
relationship among operational and functional department in order to conduct work in effective
manner.

P3 Contribution of hospitality industry to local, national and international economies
Hospitality industry is a fasting growing business which provide opportunities to others
to expand their business at international level. This industry make easy to visitors to travel from
one to another and stays there effectively (Gin, Kwon and Kim, 2013). This industry contribute
near about 10 % to the GDP of world. The respective sector is growing rapidly and developing
its presence at worldwide i.e. international, nation and local level. There are various hospitality
companies which are operating at international level such as Radisson Blu, Marriott, Hilton and
many more. By analysing data it is evaluate that there are approx 699 millions visitors travel and
visit to diverse places which help country in growing their economy. Along with this they also
help in generating employment for local, national and international peoples such as in United
Kingdom near by 12 % employment is generated through hospitality industry. The main reason
behind this is fastest growing of food as well as hotel chain such as Burger King, KFC, Hilton,
Radisson Blu, Pizza Hut, McDonald’s and many more. This will also help in generating
employment as well as enhancing economy of country. Through this international economy get
increase which also help in improving living condition of populations.
Ml Review the interrelationships of operational and functional units within a chosen hospitality
business
In every organization operation and function department is necessary because they help
in conducting work in effective manner. When respective departments conduct their work
properly company able to attain their goal as well as satisfying customers in proper way. Along
with this, operational and functional department are interrelated which help in conducting work
properly (Jones, Hillier and Comfort, 2014). Such as if Radisson Blu is organizing a event so in
this functional department plan all the activities as well as budget which are required to conduct
event successfully. After planning operational department conduct work in order to execute plan
effectively that leads to accomplishment of work in proper way.
M2 Assess how the use of franchising and licensing agreements has influenced the global
development of the hospitality industry
Every organization want to expand its business at international level because through it
they able to enhance high profitability, market shares, customer's ratio and many more. So in
order to grow globally company may adopt various methods such as franchising, licensing,
partnership and so on. Through franchising as well as licensing hospitality industry able to

expand their business in international market. In this they mainly provide authority to another
party to sale their products on their name and logo (Kandampully, Zhang and Bilgihan, 2015).
Through this company able to develop their presence at various country which help in enhancing
customer's base as well as profitability ratio.
Dl Analyse how global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry
Expansion of a business provide contribution to growth of economy and standard of
living. A company can adopt various ways for expanding business such as global growth,
franchising and licensing (Legrand, Chen and Sloan, 2013). Through global growth, franchising
and licensing there will be enhancement of economy because through this company able to
generate employment which leads to improve in income ratio that directly help in improving
economy of country in effective manner.
TASK 2
P4 Range of different operational roles within hospitality industry
In an organisation there are various role and responsibilities which are played by
operational and functional department. Through this they help a company in attaining their goal
as well as objective in effective manner because employees conduct their work properly. Some
of the major role and responsibility played in hospitality industry are given below:- Front line management: Role of front line manager is to contact with customers in order
to understand their need and satisfy them. This will help company in attracting visitors
and convincing them to stay at their hotel. Some other role played by respective manager
are attaining guest, solving problems of visitors, providing them room, ensuring all
facilities and many more.
 Back Office management: Major role played by back office management is to analysis
and maintain that whole activities which are conducted at a workplace through this
employees able to accomplish work properly and utilization of resources are done
properly (Lub and et. al., 2012). Moreover they also play various such as maintaining
data and information, planning process and many more.

P5 Examine skills required for roles within hospitality industry and current skills shortages
Skills and ability is necessary for conducting work in effective manner. So in respect of
hospitality industry an individual need to have specific skill when they want to conduct their
career in hospitality industry (Pechlaner and Volgger, 2012). This is essential because by specific
skill employees able to accomplish their work properly without any wastage. Some specific skills
that Radisson Blu required in their staffs are:- Customer handling skills: By the help of this skill employees of respective place able to
understand their visitor’s requirement and issues which help them in resolving problems
in effective manner. Along with this, they also able to fulfil requirements of customers in
proper way.
 Team working skills: Through this skill and ability employees able to conduct their work
in team which help in completing work in time as well as in effective manner. By this
there will also development of effective relationship within team members.
M3 Review the skills gaps within the hospitality industry in relation to a range of different
operational roles
Skill gap refers to gap between what an individual want to do and what an individual
actually have to do. This gap will directly as well as indirectly impact on employee’s quality of
work and profitability ratio. In respect of hospitality industry there are various skills which are
required in this so it is necessary for employees to evaluate these skills and identify gap in order
to improve it in effective manner (Radojevic, Stanisic and Stanic, 2015). This is so because if
there are skill gap employees not able to conduct their work properly and also they are not able
to use resources effectively. Such as respective firm adopt new advance technology but their
employees not able to operate it due to this resources of company not able to utilize fully and
effectively.
D2 Analyse the impact that skills gaps have on hospitality businesses and make valid solutions
for addressing these skills gaps
Skill gap of employees directly as well as indirectly impact on ratio of profit and market
shares of a firm. Due to this employees of company also not able to conduct their work in
effective manner by utilizing resources provided by company which affect quality of staffs work.
So in order to avoid this, it is responsibility of manager to develop strategies as well as plans
which help employees in removing skills gap. For this they can conduct activities like training

and development programme which must be based on skills in which employees are lacking
behind or they need to improve.
TASK 3
P6 Assess PESTEL factors that affect the development of organisations operating within
hospitality industry
In an organization it is essential for them to conduct external analysis so that they can
identify factor which are affecting them from outside. For this a company which is operating in
hospitality industry may conduct PESTEL analysis:-
 Political:It is necessary for a hospitality industry company to develop plans according to
political conduction of country because through this they able to conduct their operation
and functions in effective manner. Factors which may impact on hospitality industry are
trade policy, labour law, legislations, environmental law and many more.
 Economical:In respect of respective industry it is essential for them to develop strategies
according to economic condition of customers as well as country so that visitors afford it
effectively (Wang, 2014). In respect of hospitality industry economical factor which
impact in it are economic growth rate, inflation, exchange rate, customers income and
many more.
 Social: In refers to the factor which directly impact on company's operations and
functions. So it is necessary for a company to understand requirement of visitors in order
to provide services accordingly. Social factor which impact on respective industry are age
difference of customers, health consideration, population growth, career attributes and so
on.
 Technological: According to this there are various updated technology come in market
which help company in conducting their work and it will also help them in attracting
customers. Such as Wi Fi, robots, advance security system and many more. In respect of
technological factor which affect hospitality industry are new innovation in market,
products and services, new target customers and so on (Williams, 2012).
 Environmental: There are various factors related to environment which impact working
of hospitality industry such as storm, flood, heavy rain and many more. So it is necessary
for a company to develop strategies accordingly which help them in avoiding damage

which occur at respective time. There are various environment factors which impact on
hospitality industry such as raw material, population growth, carbon footprint benchmark
set by government and many others.
 Legal: It is necessary for hospitality industry to consider legal factors while operating
their business in their potential marketplace. Which will help them in conduct or
expanding their business in effective manner (Wang, 2013). In respect of respective
industry there are some legal factors which impact on it are advertising law, customers
right products labelling and packaging law and many more.
P7 SWOT analysis for a hospitality business and review how this can inform decision-making
process
For developing decision in effective manner a company needs to conduct analysis of
internal factors. In respect of Radisson Blu they can do the evaluation through SWOT analysis:-
Strength Weaknesses
 Service: Services provided by
Radisson Blu are top grade and
consistent across the world. The tag-
line of company indicates service
motive that act as a major strength.
 Global presence: Global recognition
have helped in creating a positive
image. Radisson Blu currently
operates with 420+ hotels globally in
around 75 countries.
 Spread too much: Radisson Blu
is spread across the world in
around eight different segments.
This spread is creating dis-
connectivity within the sub
established brands.
 Expensive: The brand name
comes with a perception of being
expensive, which can be
affordable by upper class only.
Opportunities Threat
 Modification of market trends: The
brands is counted under business class
that benefit a lot of corporate overseas
travel.
 Expansion: Radisson Blu is currently
have opportunities to expand its
 Competition: Radisson Blu faces
intensive competition. Companies
major competitors includes:
Hilton, Starwood hotels etc.
(Wang, 2013).

business operation. Can use current
scenario to create special packages for
tourist.
 Terrorism: Hospitality industry
is majorly affected by these
activities because tourism
follows.
M4 Evaluate the impacts of external factors on the development of organisations operating
within the hospitality industry, using specific exam pies
External factors are those elements which affect a company from outside and these
factors are generally not in control of management. They only can develop strategies as well as
plans according to it (Bharwani and Jauhari, 2013). In respect of hospitality industry external
factor affect them in positive manner. This is so because through it an organization able to do its
activities in proper manner which help them in attainment of target and goal. Along with this,
these factors also encourage or help companies in expanding their business operation as well as
functions at international level.
TASK 4
P8 Appraise implications of current and potential trends in hospitality industry providing a range
of specific examples
In order to sustain in market place for a long time companies of hospitality industry need
to adopt current and potential trends. Through this they able to attract huge customer's base
which leads to enhancement in profit and goodwill. There are various hotel who adopt new and
innovative technology, some major of them are describe below:-
 Robots: In the field of hospitality industry this innovation is consider as most attractive
and useful. There are many hotel who hire robots as their employees. This will help hotel
in attracting more and more visitors. In some hotels robots conduct work like preparing
food, serving food, attaining customers and so on. For example- Henna- na Hotel which
is situated in Japan they hire robots as their staffs (10 Hotels That Have Robot
Employees, 2019).
 Sustainability rules: There are various hotel which acquire practices which are eco-
friendly for which they adopt renewable resources and solar systems. There are many
hotel as well as resort which adopt solar system in order to generate electricity and many
other works. For example- Bardessono hotel of United State fix approx 940 solar panel

for generating electricity in whole hotel (A Deeper Shade of Green: 10 Hotels Enhancing
Sustainability in Creative Ways, 2019).
M5 The ability of a specific hospitality business to develop products and services to meet current
trends
Radisson Blu is famous and leading hotel which operate its business operations at
worldwide level. Respective hotel all adopt new technology for attracting customers as well as
make hotel environment friendly. Along with this they also able to generate huge profitability
ratio and goodwill about the hotel. In order to adopt new trends they have various capabilities
which help respective hotel in adopting change such as skilled employees which adopt changes
properly without affecting their quality of work. Along with this financial condition of Radisson
Blu hotel is also very strong which leads them to adopt new technology.
D3 Critically evaluate how external factors impact on current and potential trends and
developments in the hospitality industry using specific examples to demonstrate how the
industry has developed in response
In an organisation current and potential trends is beneficial for employees in various
ways such as improving staffs work quality, reduce workload, proper utilization of resources and
many more. There are some external factors which impact on current as well as potential factors
such as technological, political, social, economic, environment and so on. These external
elements help employees or management of a company in attaining their goal properly as well as
in legal manner (Boella and Goss, 2012). Such as when Radisson Blu adopt new technology then
they need to conduct various activities such as conduct training program, documentation,
develop policies related to it and many more. This is essential because through it they able to
conduct their work and adopt new technology properly.
CONCLUSION
By evaluating above discussed point it can be conclude as well as evaluate that
hospitality industry is expanding itself at worldwide level which help in gaining huge
profitability ratio and market shares. In hospitality industry there are various sub business
conducted in this which offer variety of products and services. Moreover, this will help also help
company in enhancing country economy growth and it will also generate employment
opportunities for local, national and international candidates. There is various skill which are

required within an individual when they are planning to execute their career in respective
industry. Along with this it also essential for a firm to conduct analysis through PESTEL and
SWOT so that they develop strategies properly. They also need to analysis about current trends
which impact on hospitality industry which help in developing strategies.

REFRENCES
Books and journals
Bharwani, S. and Jauhari, V., 2013. An exploratory study of competencies required to co-create
memorable customer experiences in the hospitality industry. International Journal of
Contemporary Hospitality Management. 25(6). pp.823-843.
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.
Chen, T. L. and Shen, C. C., 2012. Today's intern, tomorrow's practitioner?—The influence of
internship programmes on students' career development in the Hospitality Industry.
Journal of Hospitality, Leisure, Sport & Tourism Education. 11(1). pp.29-40.
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.
Jones, P., Hillier, D. and Comfort, D., 2014. Sustainability in the global hotel industry.
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Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
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Legrand, W., Chen, J. S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
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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.
Pechlaner, H. and Volgger, M., 2012. How to promote cooperation in the hospitality industry:
Generating practitioner-relevant knowledge using the GABEK qualitative research
strategy. International Journal of Contemporary Hospitality Management. 24(6).
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Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
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Wang, C. J., 2014. Do ethical and sustainable practices matter? Effects of corporate citizenship
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Wang, Y. F., 2013. Constructing career competency model of hospitality industry employees for
career success. International Journal of Contemporary Hospitality Management. 25(7).
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