Contemporary Hospitality Industry: Business Types, Product Range, and Contributions to Economy

This document provides an overview of the contemporary hospitality industry, including the different business types and diverse product range offered. It explores the contribution of the hospitality sector to national, local, and international economies. The interrelationships between operational and functional units within a chosen hospitality business are discussed. The impact of franchising and licensing agreements on the global development of the hospitality sector is examined. Additionally, the document investigates various operational roles and the skills required in the industry.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCT`ION....................................................................................................................3
MAIN BODY.............................................................................................................................3
Critically analyse various business types in hospitality industry & diverse product range
that is offered..........................................................................................................................3
State various ranges of functional & operational departments in selected hospitality
business..................................................................................................................................4
Briefly examine contribution of hospitality industry to national, local, and international
economies...............................................................................................................................5
Review the interrelationships of operational and functional units within a chosen
hospitality business................................................................................................................6
Discuss use of franchising & licensing agreements has influenced global development of
hospitality sector....................................................................................................................6
Specify how global growth, franchising and licensing developments have contributed to
economic worth of hotel business..........................................................................................7
Investigate a range of different operational roles within the hospitality industry..................7
Examine skills that are part of the hospitality industry..........................................................7
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles.....................................................................................................................8
Analyse impact that skills gaps have on hospitality businesses and make valid solutions for
addressing these skills gaps....................................................................................................9
CONCLUSION........................................................................................................................10

INTRODUCT`ION
Hospitality industry is a wider and broader business sector which consists of different
types of areas and accordingly they provide services as well as to the consumer and guests.
UK hospital industry has been involved with the time period and providing diversified
services traveller’s people from other places (Arun, 2020). Main purpose of this report is to
understand the importance and contribution of hospitality industry within the contemporary
business environment. Best Western Hotel, which is the largest multinational Hotel
Corporation located in United Kingdom. The hotel chain includes and has number of hotels
as well as resource such as Best Western Plus, World Hotels Luxury etc. They provide
number of services at different locations with different prices with proper consideration of
culture region and people taste as well as preferences. This report comprises of different
business types in hospitality industry, functional and operational department, contribution of
Hotel sector to national, local and international economy, interrelationship of different
operational and functional units, franchising and licensing agreements, contribution of such
agreements, different operational roles within hotel sector, skills required within the industry,
skills gap, and impact of skill gap on hotel business. Moreover, frameworks like swot and
PESTEL analysis and their implication of current and potential trends have been briefly
explained.
MAIN BODY
Critically analyse various business types in hospitality industry & diverse product range that
is offered
Hotel industry consists of different types of business and accordingly they execute
their activities functions and operations at wider context. In relation of Best Western Hotel,
they have different types of businesses across the region and globally they carry out their
business activities into different sectors which are briefly explained as follows-
Accommodations- It is a kind of a hotel industry business in which services are being
provided by hotel two people who to travel from one place to another and the purpose of
tourism, leisure, etc. In context of Best Western Hotel, they also provide diversify the range
of products and services when it comes to accommodation (Bondarenko, 2019).
Resorts- Resorts are also to be included in hotel industry because they dealing
providing services to guest as well as customers with the different types of service like food

and beverages, entertainment fun activities etc. In relation of selected hotel, they have
number of resorts which have been acquired by them at different locations.
Suites- Suites are those which are also part of a sector in which high lavish and luxury
rooms as well as facilities are being provided buy them depending on their brand name and
Goodwill in market. For example hotels like Best Western UK, Hyatt, Holiday inn and many
more hotels come under this category (Boora, 2017).
Beach resort- Beach resorts are another kind of a business hotels which having
trending in many countries and different locations because they are located near the sea coast
area and provide beautiful seaside views with swimming pools, fun activities etc.
Ski resort- It is a type of a resort which have been also proposed by hotel industry
because these include services products and activities such as skiing, winter sport amenities
and many more.
Hotels- Hotels are considered as business of hospitality industry because they provide
number of services product with large number of alternative options to customers and guest
who fulfil their needs as well as demands at all aspects.
Motels-These are another type of a business in which a particular single building
provides stay for people who look for accommodation with limited amount of facilities and
services (Kalargyrou, 2018).
Pub- This also comes under hospitality industry as because it is entertainment place
where people enjoy live music, music concerts, food and beverages etc.
State various ranges of functional & operational departments in selected hospitality business
There are different types of function and operation department in hotel industry which
helps in execution of activities in proper manner and are further discussed as below-
Operational departments- Operational departments are those that focus and pay attention
on every task and activity within hotel during different processes and procedures. Different
types of operation departments are present in Best Western hotel which are explained below-
 Front desk services- These are those department who daily encounter customers and
guest directly. Their main responsibility is to manage and handle all the customer
needs as well as demands and provide effective communication.
 Housekeeping departments-Housekeeping departments of those which are
responsible for managing and maintaining the room tidy as well as clean. They are
also responsible for keeping all amenities and details of room up to date.

Functional departments- These are who focuses on proper use and function of Hotel sector
and whether they are being operated or not.
 Maintenance- This is to be considered as essential function of this department
because maintenance includes providing help and proper functioning of different tools
machines which are used on daily basis (Kordana, 2017).
 Human resource department- Main responsibility of such department days to
recruit higher and select relevant and skilled applicants for the vacant post within
hotel.
 IT Department- It departments are also to be considered in hotel industry whose
main responsibility is to protect and secure the private information and credentials of
customers and guest in all.
Interrelationship between various functional and operational departments:
 Front desk and housekeeping- Function as well as operational departments are
interrelated with each other for example front desk and housekeeping department
properly work with IT department communication because front desk and
housekeeping responsible for handling customer problems and ensuring that all
amenities are well equipped and placed in all rooms. IT department of Best Western
Hotel communicate with their departments and ensure the safety of such tools or
equipment (Kornelius, 2020).
 HR and It departments- Human resources IT department are interrelated with each
other because HR is responsible for storing and securing the privacy credentials of
customers with the help of it department who uses different technology to protect
those stored information.
Briefly examine contribution of hospitality industry to national, local, and international
economies
Hotel industry contribute to country economy at larger level as because it is seen that
4% of GDP of UK economy consist of Hotel businesses and services which provide large
number of growth and development.
 National economies- Hotel sector provide music contribution to national economy of
the United Kingdom because approximately 700 business and services are being
associated with hotel industry and they provide number of employment opportunities
within market.
 Local- Hotel industry also contributes at login level within local economy of a
country as because they increase the locality and tourism areas of a local economy

which also help other people to engage with different community, religion and
culture. This results in creating a positive environment with a local community and
society.
 International- At international level also Hotel sector provide major contribution to
economy because back spend their businesses into foreign countries which results in
development of various areas and increase Goodwill of a particular country
accordingly (Lee, 2019).
From above discussed paragraph it is clearly seen that hospitality businesses deliver
major contribution within all national, local and definition economies. It has been also
specify that de execute their business activities on the basis of their location.
Review the interrelationships of operational and functional units within a chosen hospitality
business
Operation and function units are important business because without them it is not
easy for hotels to execute their activities in smooth manner. International between operation
as well as functional units is described underneath-
Front office & Housekeeping
Front office and housekeeping department are interrelated with each other because
front office responsibility is to ensure that housekeeping department of working appropriately
and housekeeping department provide all the necessary details to front office what amenities
are needed and whether they are efficient for future and current aspects or not.
IT & HR
It and Human resource department is also included with each other because it
department is responsible for securing the personal credential and privacy of all customers
and guest. Human resource department is responsible for storing the reliable information of
applicants in systematic order. Both departments’ main objective is to secure the data and
privacy of customers and guest (Lim, 2019).
Discuss use of franchising & licensing agreements has influenced global development of
hospitality sector
It is critically essential for the entire business sector to enter into foreign market to
expand their business which is possible only with the help of adopting market entry strategies
at different aspects. In consideration of selected hotel, they also use franchising and licensing
to expand their business which is further given below-

 Franchising- It refers to the process and market entry strategy which is used by
organisation in which Franchisor give permission to franchise to access and use a
brand name within their own specific country with mutual agreed agreement
 Licensing- Licensing is another type of a marketing and strategy in which licensor
grant permission and authorisation to other individual to use their intellectual property
with the rights for a specific time period.
This is also examined that franchising and licensing agreement are important to be properly
implemented within business through which it become easy for Best Western Hotel to expand
their services and activities into another country's efficiently.
Specify how global growth, franchising and licensing developments have contributed to
economic worth of hotel business
Hotel businesses and industry uses various types of strategies with the purpose of expanding
their level of Business and activities into international level so that they are able to achieve
higher profit and accomplish their goals. Franchising and licensing agreements are terms
which are mostly preferred by hotel industry in order to develop and contribute to profit
growth as well as business simultaneously. Contribution by these two terms is given as
follows-
 Franchising- It is type of agreement which is used by organisation when they wish to
expand their activities into another countries or region. It is a process in which
franchise of grant permission to franchise to use their product and services. Main
benefit of this agreement to Best Western Hotel is that they are capable of accessing
too many new opportunities within business and also increases Goodwill in market
(Meissner, 2019).
 Licensing- Licensing refers to market entry strategy which is used by Best Western
Hotel in which they grant others to use the intellectual property rights and brand name
for a specific time period. Main benefit and contribution of this agreement is that
Hotel is capital of merging of with other businesses which leads to higher growth and
development.
Investigate a range of different operational roles within the hospitality industry
It is essential for operation department to fulfil their roles in hospital industry at all aspects so
that battery expenses provided to customers. There are various types of operational roles in
selected hotel which are explained below-

 Food and beverages head manager- It is important role within operation department
in which food and beverages manager is responsible for handling and managing
quality of a food and ensure that better service is provided to them.
 Housekeeping department manager-It is also Important role in operation
department in which manager is responsible for supervising all the staff and making
ensure that all roles are properly assigned (Provotorina, 2020).
Examine skills that are part of the hospitality industry
Skills are important in hotel industry it is not easy for individual to execute their
activities and responsibilities appropriately. Various types of skills are linked with different
departments which are given as follows-
Operation manager- Operation manager play important role in hotel industry because they
are responsible for controlling and managing all the necessary production activities within
hotel. So, in context of selected hotel, operation manager post is vacant for which various
skills are required and are mentioned underneath
Skills-
 Communication skills- Communication skill is priority of operation manager which
is given by them because it is used at all aspects and is required widely within hotel
industry. For example the candidate for applicant will be selected as operation
manager on the basis of their communication skills and methods be used for
communicating with people
IT department head-
It is another vacant position in Best Western Hotel which present in which they need
IT department head that will be having higher experience of working in hotel industry and
will be well knowledge with information system and tools. Various skills are needed for this
position which are discussed as follows-
Problem solving- It is the most essential skill which will be needed by IT department
head and hotel industry because they will be responsible for solving the critical problems and
managing the privacy of customers at all aspects (Richard, 2017).
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles
Hotel industry is developing and changing rapidly due to which the gaps in employee
skill is also increasing which is making it difficult for selected hotel to execute their

operations and increase their productivity and business at higher scale. Different types of skill
gaps at present and which directly impact upon Hotel activities which are needed to be
properly identified and are explained below-
Skills Gap in hotel sector- Competition level in hotel sector is directly impacting
upon Best Western Hotel profit and sale ratio. With the advanced and modern use of
technology and business studies skills gap are increasing for example most of the businesses
are now well equipped technologies used of software as well as tools, employees find it
difficult to understand complexity of those technologies. Another skill gap is that employees
do not have the capability of doing multitask operations and function due to lack of
knowledge, furthermore lack of ability to determine market situation with use of marketing
techniques and frameworks. These are some of the major skill gaps within employees in hotel
industry which impact upon their business (Ulubeyli, 2019).
Analyse impact that skills gaps have on hospitality businesses and make valid solutions for
addressing these skills gaps
Skills gap directly impact on hospitality business due to which they find it difficult to to deal
with competitors and increase their survival period in market. The impact of skills gap is is
given below-
 Unable to deal with competitors- It is the major impact of skills gap in which due to
lack of skills and capabilities within employees and employers hospitality businesses
are unable to deal with their competitors who uses innovative marketing strategy to
increase their productivity (Arun, 2020).
 Difficulty in providing better experience to customers- Due to lack of skills
employees are unable to deal with customers and their expectations which results in
relations and hotels are unable to provide better experience to their target audience.
Solutions to skill gaps
 Training and development programme- It is the most effective solution for
reducing the skill gaps as because in consideration of Best Western Hotel, by adopting
this solution of providing training and program to their employees and within
management it will be easier for them to deliver a new level of knowledge to
employees.

CONCLUSION
After a brief analysis of above discussed report it has been analysed that hospitality
business has been evolving with the time period and it is necessary for them to provide better
experience to customers and guest and fulfil their all needs as well as demands. So,
discussions have been made about various types of businesses within hotel industry,
functional and operational department with their interrelation, contribution of Hotel sector to
economy, franchising and licensing agreement overview, overview of agreements, operational
roles in hotel industry, skills gap in hotel sector, impact of skills gaps in hotel businesses. It is
evaluated that hotel industry need to be aware about market situation to achieve their goals
and mission.

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