The Contemporary Hospitality Industry: Types of Businesses, Contributions to Economies, and Operational Departments at The Ritz Hotel

The Contemporary Hospitality
Industry
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Table of content
Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Explain various types of businesses within the hospitality industry along with the diverse
products and services that they offer...........................................................................................3
P2 Discuss the contribution of hospitality industry to local, national and international
economies....................................................................................................................................5
P3 Examine the range of operational and functional departments within The Ritz Hotel..........7
TASK 2............................................................................................................................................8
P4 Investigate a range of different operational roles within the hospitality industry..................8
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages......................................................................................................................................9
Task 3.............................................................................................................................................11
P4 PESTLE analysis of Ritz Hotel London...............................................................................11
Task 4.............................................................................................................................................11
P5 SWOT analysis of Ritz Hotel London..................................................................................11
P6 An appraisal of various implications of current and potential trends in the hospitality
industry......................................................................................................................................11
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12
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Introduction
The hospitality industry has various diversities due to the innovation level at the
organisation, ownership, classification, grading system leisure facilities, service levels, future
trends, etc. There are various types of hotels that aim to provide standard services to the guest.
Hospitality industry is being considered as the industry that has its major contribution towards
the revenue generation in various economies of various countries. Though Hospitality industry is
basically an important element of travel and tourism industry, but it is also considered as a major
independent sector as well (Ali and et.al., 2019).
In order to complete this report on the topic, 'The contemporary hospitality Industry' the
primary organisation considered for the study is The Ritz Hotel, London. The Ritz hotel, London
is a UK based hospitality organisation that is located in Piccadilly, England. It is a Grade II listed
5 star hotel. The owner of The Ritz Hotel London is Abdulhadi Mana Al-Hajri and it was
established in the year 1906.
Task 1
P1 Explain various types of businesses within the hospitality industry along with the diverse
products and services that they offer.
The hospitality sector business is often linked with the tourism industry as well. The
reason behind the linkage is that the money that is made by hospitality is due to the tourists that
travel the places and thus is a major source of revenue generation for the various businesses. This
further helps in enhancing the economy of the United Kingdom as the government is also
earning through taxes. The commercial sector within the hospitality industries are established
with an aim to earn profits through their business activities. There are various businesses under
the hospitality commercial sector such has Bistros, Cafes, fast food outlets or takeaways, guest
houses, Hostels, hotels, Motels, Public houses or Inns, Restaurants, street food stall and wine
bars. The main motive of the commercial sector hospitality organisations is to serve their
customers in order to provide them with satisfaction and generate revenues. There are various
types of hospitality businesses that have been discussed below (Ann and Blum, 2020).
 Within food service sector- The hospitality businesses also have a stream that deals in
food service sector. The hospitality business organisations that deal in food, tend to
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satisfy their customers by their food and beverages. There are various variants of food
service sectors which have not been specified yet and hence it is always considered as
the hidden side of the hospitality. Restaurants and hotels receive stars and plaudits, also
there are chefs that are involved in the business and industry that work in accordance
with the Michelin standards. There are various members clubs that operate at the same
high level. The need for food service sector is driven by various organisations such as
business and industry, Casinos, colleges, old people's home, prisons, retirement villages,
Schools, garden centres, sports stadium, Heritage, etc.
 Accommodation businesses in the hospitality industry- It is very commonly known
that hospitality sector is not just in context of food, but accommodation is also a very
important part of the hospitality industry. Similar to the restaurants, even accommodation
facilities have various levels of operations (Baum, 2019). The various accommodation
businesses that are operated have been categorised as dormitories, Halls of residence, Bed
& Breakfast, Guest houses, Un-graded hotels, 1 star hotels, 2 star hotels, 3 star hotels, 4
star hotels, 5 star hotels, 6 star hotels, 7 star hotels and 8 star hotels. There is only one 8
start hotel in the world and that is situated in Dubai. Among these, Dormitories and Halls
of residence do not offer food whereas various guest houses and Un graded hotels operate
on the basis of providing rooms. For most of them, the primary mode of revenue
generation is rooms but they also provide food and beverages as a supplement source of
income.
 Event sector- The third branch of hospitality sector is the event sector organisations. In
the event sector organisations, apart from traditional conferences and banquets the offer
various events like seminars, shows, exhibitions, meetings, incentive travel, product
launches, etc.
As discussed above, it can be analysed that all the three sectors i.e. food and beverages,
event and accommodation have a link between them. The main reason behind the link is that
there an accommodation and an event can not happen without providing food and beverages.
These offer nearly same products and services but is considered diverse in terms of quality that
they offer (Bowen and Morosan, 2018).
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