Contemporary Hospitality Industry

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Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 The different type of business in hospitality industry and the diverse products and services
they offer................................................................................................................................1
P2 Examine range of operational and functional departments within chosen hospitality
business...................................................................................................................................2
P3 The contribution of hospitality industry to local, national and international economies.. 4
TASK 2............................................................................................................................................4
P4 Investigate a range of different operational roles within the hospitality industry.............4
P5 The skills required for roles within the hospitality industry and current skills shortages.5
TASK 3............................................................................................................................................6
P6 PESTEL Analysis of hospitality industry.........................................................................6
P7 Undertake a SWOT analysis for hospitality business.......................................................7
TASK 4............................................................................................................................................9
P8 The implication of current and potential trend in the hospitality industry........................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industries is defined as the broad group of businesses which delivers
different types of services to the customer. The main motive of Hospitality industries is to give
satisfaction to every customer's. This industry is important because it helps to add on the new
experience in the life of tourist (Bontis, Janošević and Dženopoljac, 2015). The chosen
organisation for this project is Intercontinental Hotels Group. It's headquarter is in Denham,
United Kingdom. The CEO of the is Keith Barr. The topics which will be included in this
respective project is related with different kind of business in specific area and the service which
are being provided by them. Secondly, there will be explanation on current and anticipated skills
that are necessary within the sector of hospitality industry. Description will also relate to internal
and external factors which do have impact on hospitality industry. At the end, there will be
analysis on current and future trends.
TASK 1
P1 The different type of business in hospitality industry and the diverse products and services
they offer.
In any of the nation, hospitality sector is one of the most important sector because it
directly impacts on the GDP of the country. Hospitality sector has the huge role in context of the
development of country because they are the one who can directly influence the tourist in large
quantity. The purpose of commencing hospitality industry is to deliver the service which is
required by the guest. It is said that hospitality sector cannot be run single handedly to achieve
success so it is connected with various hospitality sector which is explained below:
 Lodging accommodation- The main concern of this sector is to give best comfort zone
to its customers. Here, industry try to find the best possible way to delivery luxuries
facilities to tourist. In addition, they even try to maintain the standard of food quality so
that guest will not feeling any kind of comfortableness and that will help to achieve the
target of organisation. This sector mainly includes hotels and resorts (Dedeoğlu and
Demirer, 2015).
 Food and Beverage- The area which is mainly covered in it is related with the wants
and desire of customer which they usually required at the time of travelling. This sector
has been further divided into small section which is explained below in detail:
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◦ Quick service establishment- The main motive of this section is to deliver the best
form of service to guest in short period of time. It includes meals & snacks where as
it is also known as fast food cuisine as it delivers basic form of table services.
◦ Catering business- The motive of this section is deliver the services to guest only on
some of the special dates which includes family gathering, parties and many more.
◦ Full service restaurants- Multiple options are available with the customer in full
services restaurant. The main benefit of this form of services is that customer do get
the option to select the food and beverages of their own choice. Tourist do enjoys
the best form of services in it as they have the option to receive the service directly on
table.
 Travel and tourism – The area which are covered in this sector is connected with
travelling as tourist get the option to select the there choice of journey. It includes
airlines, ships, roadways and many more. Here, service are give as the amount of money
spend by the traveller (Huang, Li, Qiu, Yim, and Wan, 2016).
 Entertainment- Whenever tourist plan to visit new place, the first question which arises
in there mind is that what are the main sources which will help to feel relax and
enjoyable. Entertainment is the sector of hospitality industry which focus on the games
and other sport which makes comfortable to tourist.
 Time share- At some stage of the life, people do think that there life is boring and
because of that they required to spend some quality so that they can easily come back to
there comfort zone. Time share is one of the section of hospitality sector which offers
guest to spend quality leisure time.
P2 Examine range of operational and functional departments within chosen hospitality business.
Any of the business organisation requires various department through which company
can be operated successfully. In context of Intercontinental Hotel Group, they are required to
know about all those department which they need to commence so that business activities can be
conducted successfully. It will also be benefited as organisation goals will be accomplished
easily. The main purpose of commencing different department in Intercontinental Hotel Group is
to provide various kind of services to the customers whenever they visits the premisses of hotel.
Some of those department which are required are listed below:
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Operational department- It is one of the most active department of Intercontinental
Hotel Group as it is related with the services and accommodation which is being delivered to the
customer. Some of the department which are included in operational department are categorised
below: Maintenance: The main area which is required to be operated in this department is
related with the maintenance of every single things within the premisses of Hotel. In
context of Intercontinental Hotel Group, they have formed separate maintenance team
whose responsibility is to check every electric work within the hotel so that in any of the
situation guest will not suffer from any kind of problem.
 Security Department: It is important for Intercontinental Hotel Group ofUK that they
must be able to deliver the best form services related to the security of guest. It is helpful
because traveller do fell safe because of this department whenever they are inside the
area of Intercontinental Hotel (Jones, Hillier and Comfort, 2016).
Functional department- It is one of the area which is very crucial for any of ther hotel
sector industry because every single information is required to be kept with number of manpower
to run business successfully. In context of Intercontinental Hotel Group, this department have a
huge role role for accomplishing the target of organisation. Some of the department which has
been divided within Intercontinental Hotel Group has been categorised below:
 Account Department: It is the department of Intercontinental Hotel Group whose main
duty is to keep the records and data every single income and expenses which has
occurred within the premisses of Hotel. This is helpful for the hotel as they can find the
actual position of industry that how it is performing.
 Human resource department- In this department of Intercontinental Hotel Group , they
are required to hire new employee's for hotel who can give there best only after providing
the best training session to them. This is the main reason that Intercontinental Hotel
Group is performing will in the market.
Here, Intercontinental Hotel Group does follow hierarchical structure through which they
give them opportunities to achieve their targets on particular time period. They try to find the
skills and and knowledge of every individual in order to delegate them roles and responsibilities
which they are required to fulfil.
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P3 The contribution of hospitality industry to local, national and international economies.
Hospitality industry is one of the most impact-able industry in any of the nation and
because of that they are required to focus that how they expand their business at greater platform.
The best way to expand the business in hospitality sector is by targeting the market share through
which travellers can easily influence. It will directly have the major impact on local, regional and
international economy. Positive and negative impact of this economy has been explained below:
Local economy- Here, the major thing which is being checked is that how organisation
can satisfy there customer as that will have direct impact upon the company. In context of UK,
their hospitality industry try to find the best possible way through which customer can spend
more amount of money. This is one of the positive impact upon the local society of UK.
International economy- In current situation there are number of hotels who are
operating there business at international level. It has the direct impact on UK as it has seen
around 10 to 15 percentage growth at international level. This is one of the reason that living
standard of UK people have raised significantly (Kandampully, Zhang and Bilgihan, 2015).
National level- The hotels industry have been much profitable in context of UK as as a
result it has become the third biggest growing industry. The main benefit from this industry is
that it helps to create more number of job opportunity within the premisses of UK. This is the
reason that UK market is developing day by day.
There are number of small restaurants and food cafes which are trying to enhance there
business as hospitality industry is growing day by day within the UK market. Also, it will
generate more number of new job.
TASK 2
P4 Investigate a range of different operational roles within the hospitality industry.
Various departments are there within the hospitality sector which is trying to find the best
possible way to deliver the best form of services to its guest. Roles and responsibilities are
distributed equally among the employee's as per their capacity and skills. As work is distributed
as per the skill and capacity, every employee's thinks to wind up the work in desirable manner.
Different types of operational goals are explained below:
Role of Executives: They are the one who have to take most of the decision within the
premisses of hotel. In context of Intercontinental Hotel Group, they are required to know the
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current situation of the market so that they can easily take some of the major decision for the
benefit of hotel. Even they are required to handle the guest in the hotel who are having any kind
of issues in the premisses of hotel (Ozturk, 2016).
Role of Marketing & Sales: Marketing and sales team have the major work to do for
meeting the goals of organisation. Here, Marketing team of Intercontinental Hotel and Group is
required to find the best possible way of marketing and must inform the traveller that why their
hotel is renounce at global level. In this, they are required to focus on digital marketing and
various online promotion.
Role of Kitchen Staff: The kitchen team of Intercontinental Hotel Group is required to
know that how they can provide the best form of services to the customer who visits the hotel.
They need to ensure that the kitchen area of the hotel is neat and clean so that higenic food can
be provided to the customer.
P5 The skills required for roles within the hospitality industry and current skills shortages.
Whenever people joins any of the field they must need to ensure that they have proper
skill through which they can easily meet out the organisational goal. Some of the useful skills
which are required within the premisses of hospitality industry are listed below:
Multitasking Skills: It is one of the most important skills which is required in the field of
hospitality. Here, different customers have different wants and desire and it is necessary for
manager to be multitasking. In context of Intercontinental Hotel Group, their manager must have
this skill where he can deal with different work at a single time because it will help customer as
they will get each and everything which they required in the premisses of Hotel.
Communication Skills: It is necessary that individual must have better communication
skills so that any of the doubt can be solved when it is required. While talking about
Intercontinental Hotel Group, their should have the capability of good communication skills as it
will help them to provide better guidance to tourist who are staying the hotel (Radojevic, Stanisic
and Stanic, 2015).
Management skills: It is one of the important skill which is required in the management
team of Intercontinental Hotel Group. It will help them to do appropriate planning and executing
plans through which service that are being delivered can be improved in future. It will also help
to guide subordinates that how work is required to be done.
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TASK 3
P6 PESTEL Analysis of hospitality industry.
It is necessary for any of the hospitality industry to know about the external factor that
can impact on the business organisation. Different factors of PESTLE which can impact the
hospitality industry has been explained below:
Political factor- This factor is related with the government policies which are commenced by the
government. The rate of VAT in UK is constant since last couple of year due to which
hospitality industries are capable of operating its business activities easily and smoothly.
Government in UK has been facing global pressure pressure so that all the regulations formed by
WTO for hotels cab be fulfilled.
 Positive: Operating in UK will benefits the intercontinental hotel groups to have stable
policies and norms due to which employees will be able to perform their work in a
desired manner.
 Negative: If hotel chain will operates in region which is not politically stable then they
have to change their rules and strategies at continuous basis due to which organisational
productivity will reduce.
Economic factor: These factors are concerned with interest rate, economic cycle, savings rate,
inflation rate, GDP and foreign exchange rate. Intercontinental hotels are needed to acknowledge
these aspects about a country before expanding their businesses in that region.
 Positive: It will be beneficial for the concerned hotels to operate in area where
government intervention will be low. This will secure the company from extra taxes and
custom duties (Tresidder, 2015).
 Negative: If interest and inflation rates will be high in a region then operating their will
charge extra costs to company due to which profitability can reduce.
Social factor: These factors are linked with culture, values, briefs and trends associated with a
particular society. Belief of population will help intercontinental hotel groups in understanding
the needs of customers in context with travelling and staying.
 Positive: If manager of hotel will understand demographics, culture, values of a place
properly, it will benefits them in serving according to the needs and demands of
customers.
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 Negative: If company is not aware about demographic, it will results in offering those
services and products to customers which are not needed or accepted by them. It will
results in revenue loss.
Technological factor: In order to gain competitive advantage over rivals, it is essential for
business organisations operating in hospitality sector to update their technology. This will
benefits in gaining access to large customer base.
 Positive: It will help company in performing business operations in more efficient
manner.
 Negative: If organisational technology will not be implemented, customer will change
their preference toward other organisation.
Environmental factor: Different countries have varied environmental norms and standards. To
operate in a particular region, it is vital for intercontinental hotel groups to follow all the policies
and procedures related with environment.
 Positive: Following environmental laws will benefits the company in sustaining a
positive image in market due to which sales will be high.
 Negative: If company will not follow environmental laws, customers will deny to use
their products due to which revenues will decrease.
Legal factor: These factors are related with intellectual rights, patent framework and other legal
laws formulated by a company. An organisation is needed to evaluate legal laws properly before
entering a market (Yadav, Kumar Dokania and Swaroop Pathak, 2016).
 Positive: If legal laws will be formed, hotels will sustain a strong position in
marketplace.
 Negative: if manager of hotels will not follow these laws then it will results in payment
of heavy fines and penalties.
P7 Undertake a SWOT analysis for hospitality business
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STRENGTHS WEAKNESSES
 The workforce of Intercontinental hotel
is highly skilled and motivated due to
large investment in resources of
training and development of
employees.
 The company has achieved high level
of customer satisfaction through the
dedication of customer relationship
department by using various strategies
and attained good brand equity.
 The company is planning to expand its
scale which require more investment in
new technology which require huge
amount of money to incorporate the
process.
 The company is not at very good in
forecasting the demand of the product
which result in missed opportunities in
comparison of competitor and end up
keeping more inventory in- house.
OPPORTUNITIES THREATS
 The decrease in cost of transportation
due to lower prices of shipping results
in cost reduction of hotel group which
is an opportunity to boost the
profitability.
 The company possess free stable cash
flow which provide an opportunity to
invest in various segment and can
invest in more technologies with more
stable liquidity.
 The product which are highly profitable
has seasonal demand in nature and any
event can impact the profitability of the
company.
 The hotel is facing shortage of raw
material in certain global market which
is a threat for steady growth.
Influence in decision making-
Conducting SWOT analysis assist management in identifying company's strengths
and weaknesses thus while taking decision for the betterment of an organisation, the
management consider the strengths of company to minimise their weaknesses and
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grabbing competitive opportunities in order to achieve strong market position at global
level. For example, the company is failed to forecast the demand of the product in near
future thus it is their weakness which can be convert into strength through making
decision regarding conducting market research so that future trends can be easily
analysed. Another example of weakness is facing shortage of raw material which can be
turned into strength by using inventory management system so that demand of their loyal
customers can be fulfilled on time (Tresidder, 2015).
TASK 4
P8 The implication of current and potential trend in the hospitality industry
Current and potential trends of hospitality sector are discussed below:
Current trend:
 Internet service: With the help of internet, customers have the facility to make
reservations and doing payment by online means. Also internet benefit customers in
reviewing about the facilities which are offered by Intercontinental hotel groups so that
manager of firm can carry out required modifications.
 Direct booking: Many hotels offer facility of direct booking where bookings can be
performed via online means. This saves the time of customers while reserving an
accommodation for their stay.
Future trends:
 Sustainability rules: It involves eco-friendly practices that are becoming priority for
customers due to reduced renewable energy resources and scarcity of water. In this
context, hotels are needed to install solar panels so that electricity can be saved.
 Need for seamless technology: Across devices and platforms, seamless connectivity is
important. Future trend in hospitality can be offering digital concierge and customised
check-in so that comfortableness of customers can enhance.
CONCLUSION
From above mentioned report, it has been concluded that hospitality industry is a wide
sector that includes travel and tourism, hotels, night clubs, entertainment place in it. Businesses
associated with hospitality sector not only contribute at global level but also offer benefits to
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national and international economy. There are different operational roles in an organisation and
employees needs specific skills to follow those roles. With the help of PESTLE and SWOT,
business environment in hospitality sector can be evaluated properly. There are current and
potential trends of hospitality that allow benefits to business organisation in achieving high
profits.
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REFERENCES
Books and Journals
Bontis, N., Janošević, S. and Dženopoljac, V., 2015. Intellectual capital in Serbia’s hotel
industry. International Journal of Contemporary Hospitality Management. 27(6).
pp.1365-1384.
Dedeoğlu, B. B. and Demirer, H., 2015. Differences in service quality perceptions of
stakeholders in the hotel industry. International Journal of Contemporary Hospitality
Management. 27(1). pp.130-146.
Huang, J., Li, W., Qiu, C., Yim, F. H. K. and Wan, J., 2016. The impact of CEO servant
leadership on firm performance in the hospitality industry. International Journal of
Contemporary Hospitality Management. 28(5). pp.945-968.
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.
Ozturk, A. B., 2016. Customer acceptance of cashless payment systems in the hospitality
industry. International Journal of Contemporary Hospitality Management. 28(4).
pp.801-817.
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.
Tresidder, R., 2015. Experiences marketing: A cultural philosophy for contemporary hospitality
marketing studies. Journal of Hospitality Marketing & Management. 24(7). pp.708-726.
Yadav, R., Kumar Dokania, A. and Swaroop Pathak, G., 2016. The influence of green marketing
functions in building corporate image: Evidences from hospitality industry in
adeveloping nation. International Journal of Contemporary Hospitality
Management. 28(10). pp.2178-2196.
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