Challenges and Trends in the Hospitality Industry

This presentation discusses the operational, managerial, and legislative issues affecting the hospitality industry. It also explores the current image of the industry and predicts potential trends and developments. Recommendations are provided for hotels to stay updated with the changing landscape.

Contemporary
Hospitality Industry
Task – 3 and Task – 4

INTRODUCTION
The hospitality industry is the major revenue generator for
various economies of nations. In fact, in travel and tourism
sector as well, hospitality is regarded as the major element.
There are many issues which are challenging the firms
operating in this sector such as managerial, operational and
legislative issues (Beddoe, 2004). All these issues are
required to be addressed in order to have smooth functioning
of the companies. Pertaining to this, the presentation will
brief about these issues. Other than this, the current image of
the hospitality and its recent trends and development will be
discussed in the later part of the presentation.

TASK – 3
3.1 Analyzing the operational, managerial and legislative issues
affecting the hospitality industry
Throwing light in relation with the hospitality industry, it is quite
dynamic and flexible in nature. While operating the business,
companies face numerous challenges and issues that affect its
functioning. Focusing about the operating issues, it includes
expectations of the customers, recruitment, retention, learning and
development, food safety, social-cultural issues, outsourcing services,
E-commerce etc. However, the most important among these issues is
expectations of the employees (Busquets, 2010). Workers expect lot in
return from the hotels like good performance appraisal, growth
opportunities, healthy working environment, recognition etc. All these
demands should be met for effective and better productivity.

Continued…
Managerial issues encompass quality assurance, management of
performance, identifying the key players in the market,
branding, implementation of food and safety management
systems etc. Last but not the least; legislative issues are very
crucial, as without their consideration no business can run
smoothly a legal business. According to the European laws and
legislation, the hotel industry has to change their working
practices. There are several acts such workplace equality,
minimum wage and discrimination act that needs to be taken
care while carrying out the operations. Furthermore, if these
laws are not followed than heavy penalties have to be paid by
the hotels (Erfurt-Cooper and Cooper, 2009).

Continued…
For illustrating the example of operational issues, an example of
Ritz Carlton hotel can be taken into consideration. The hotel
was founded in the year 1983 with the leading chain in almost
every part of UK and many other nations. It is the expectations
of the employees of the hotel that they should have good
learning and development events within the firm. Pertaining to
this, Ritz Carlton provides training to the workers by following
a systematic procedure i.e. firstly the needs of the training is
being evaluated and afterwards, training sessions are designed.
Because of such efforts, the hotel has low rate of employee
turnover (Murphy and Olsen, 2008).

Task- 3
3.2 Current image of the hospitality industry
Prior development of the hotels, the image of the hotels
was restricted with the kind of business and time of
business. However, in the current scenario, it is becoming
difficult to differentiate the big issues that significantly
change the establishment in the hospitality sector. This
pertains to the fact that they can serve for larger duration
of time in relation with the food and beverage industry
and also for the hospitality industry as well.

Continued…
Today, the perception and preferences of the people
have altered a lot about the hospitality sector. Now,
each and every individual is stuck in some or the other
work and have no time to prepare food (Wong and
et.al., 2008). They are focusing more towards packed
and ready to eat food to satisfy their hunger.in
addition, they are also availing the takeaway services
of the restaurants.

TASK – 4
4.1 Justifying predictions for potential trends and
developments in hospitality
O Mobile based bookings – Mobile based services have
outperformed many of the booking system by the time
when the internet services on devices like laptops, I-pad
will reach at their peak. Today the environment is
technology driven and thus, smart phones are taken as a
mini device for computing that has enabled the
companies to leverage on a particular factor. Many hotels
such as IHG, Starwood and Hilton have significantly
curtailed their cost related to operations (InterContinental
Hotels launches new upscale brand, 2018).

Continued…
O Online booking of services – in the recent scenario, researching
and travellers booking through online medium has increased
significantly. As per the study being conducted in the year 2013,
there were around 100 million people who have researched
about the online travel. This online trend is impacting the
business and operations of the companies involved in the
hospitality sector.
O Uneven distribution of demand – Due to the economic
slowdown in the UK, the hospitality industry and its related
sub-sectors are impacted a lot. But with the recovery economy,
these establishments are also witnessing recovery. With this
recovery, the growth of bars, pubs and clubs has increased, but
there is a slow growth in hotel industry (Phillip, 2017).

4.2 Producing an impact analysis for the predicted trends and
developments
In the previous question, numerous trends impacting the
hospitality industry have been identified. All these trends are
influencing the working of the hotels and other related
sectors. The lifestyle of people is changing and because of
which they are now ready to pay more for unique services
being offered by the hotels. Many hotels in UK have started
boutique hotels concerning these changing perceptions and
lifestyle. In addition to this, hotels are also engaging in the
activities of renovation of their old establishments so as to
cater with the contemporary needs of the society.

Continued…
Furthermore, the hotel industry is now focusing
towards the environment where they carry out their
functions by overseeing the rising awareness of
people about the environment and their natural
surroundings. Pubs, clubs, hotels, motels, restaurants
are paying attention towards the sustainability through
contribution in the development of the natural
environment (Aquilano, 2009).

Continued…
For illustration, at the time of development of sites and
establishments near hilly areas, hotels are required to make
sure that their activities and construction work will not destroy
the climate as well as natural surroundings. Thus, it can be said
that in the present scenario, there are many changes, trends and
developments taking place, which are one way or the other
impacting the growth and functioning of the hospitality
industry and its related sub-sectors. Thus, to make sure that
there is sustainable growth, each and every firm related to this
sector should envisage these trends so as to attain the
advantage of first mover (McKenna and Beech, 2002).

CONCLUSION & RECOMMENDATIONS
Consequently, it can be well versed that the economy of United
Kingdom is growing at the tremendous pace with a significant
contribution of the hospitality sector. Due to its hands in the
growth of the economy, the relevance ad importance of this
industry is increasing from past several years. In addition to
this, there are numerous changes, developments and trends
taking place which are impacting this sector significantly and
therefore, it is highly suggested that hotels should take into
account such issues as soon as possible in order to have hassle
free functioning. Moreover, they should also keep themselves
updated with the upcoming trends and developments so as to go
hand in hand with this modern world.

References
O Aquilano, J.C., 2009. Operation & Supply
Management. New York: McGraw Hill
O Beddoe, C., 2004: Labour standards, social
responsibility and tourism. London: Tourism Concern.
O Busquets, J., 2010: Accommodation and consumption
diversification in the sector of tourist accommodation
and restaurant industries, and its effects on labor
relations. Study commissioned by the ILO.
O Erfurt-Cooper, P. and Cooper, M., 2009. Health and
Wellness Tourism: Spas and Hotsprings, in Aspects of
Tourism. Bristol: Channel View Publications.

Continued…
O Murphy, K. and Olsen, M.J., 2008. Dimensions of a high
performance management system: an exploratory study
of the US casual restaurant segment. International
Journal of Contemporary Hospitality Management,
21(7), pp.836-53.
O Wong, M., Gardiner, E., Lang, W. and Coulon, L., 2008.
Generational differences in personality and motivation:
do they exist and what are the implications for the
workplace? Journal of Managerial Psychology, 23(8),
pp.878-90.
O McKenna, E. and Beech, N., 2002. Human Resource
Management. London: British Library Cataloguing.

Continued…
O Phillip, I., 2017. Holiday Inn owner has broken vow
to pay living wage. The Guardian.
O InterContinental Hotels launches new upscale brand.
2018. [Online]. Available through: <
http://tradearabia.com/news/TTN_341654.html>.
[Accessed on 22ndJune 2018].