Contemporary Hospitality Industry

This document provides an overview of the contemporary hospitality industry, including the different types of businesses and the products and services they offer. It explores the operational and functional departments within the industry and their roles. The document also discusses the contribution of the hospitality industry to local, national, and international economies. It investigates the various operational roles within the industry and the skills required for them. Finally, it analyzes the industry using PESTEL and SWOT analysis.

Contemporary Hospitality
Industry

Table of Contents

INTRODUCTION
In modern era, hospitality industry is one of the famous and fastest growing industry in
over the world which directly contribute in satisfying customers needs and demand. Mainly
includes different services like transportation, lodging and travel & tourism that are served to
large number of customers as per daily basis (Wang, 2014). Along with this, it is also consider as
a broad category in service industry that consist various aspect such as drink service, event
planning, theme parks, travelling and many more that help in satisfying customers who willing to
pay for these services. Current assignment is based on InterContinental Hotel, is a British
multinational company in England. Project is going to discuss various kind of business in
specified industry and its diversify products. Along with this , its contribution in local and
international economics is also discussed briefly. At last SWOT and PESTLE analysis of
business organization is also mentioned in this project.
TASK 1
P1 The different type of business in hospitality industry and the diverse products and services
they offer
Hospitality industry play a significant role in processing growth of the country as number
of organization operate their business in to attaining success. By this, organization can easily
invite large number of customers that lead in enhancing the growth level of the company at
market place. The main aim of Hospitality industry is to satisfy need and desire of travellers as
per their requirements. In this context, different type of business in hospitality industry are as
follows:
Lodging accommodation: This type of business organization offer luxury products and
services to customer's. Mainly, it includes resorts, hotels, and many more which not only provide
accommodation services but also focus on satisfying customers needs by supply quality of food
and other services. It provide food and lodging facilities to make customers more satisfied.
Through which, company increase their profitability and productivity level at market place.
Travel and tourism: This business focus on food services to customers to satisfying
food related needs. By this they can improve customers base at market place. Mainly this sectors
classified into certain categories are as follows:
1

 Catering business- This business provide food services to its customers as per specified
event like parties, anniversary or any other kind of celebration. The main focus of this
business is to offer quality food to customers (Wang and Tsai, 2014).
 Full service restaurants- Under this type of business, fine dining facilities along with
wide range of options related to food and beverage are offered to its customer's as per
their needs and wants. By this, they can improve positive experience of customers
towards its services.
Travel and tourism: These type of business are wider in its size as it includes various
services like airlines, cruise ships, and many more. Along with this, it also provides travel and
accommodation services to its customers for attaining their higher satisfaction.
Entertainment- The main purpose of this type of industry is to provide different kind of
games and sports to customers who are willing to pay for this. In this they always tries to
increase customers satisfaction towards its services.
P2 Examine range of operational and functional departments within chosen hospitality business
In hospitality industry, different various type of departments are there which perform
their working activities for attaining objectives in stipulate time frame by satisfaction customers.
Along with this, all the department are also linked with another division in which they perform
their task with better coordination. With the assistance of this, InterContinental Hotel can invite
or attract large number of customer's towards its offering within limited period of time. For
better understanding, there are some different department within the organization are as follows:
Operational department: It is one of the important division of business as it is related with
managing as well as designing operations activities with the aim of converting raw material into
final goods and services. It may contribute in increasing profitability level of the company.
Mainly, it concern with creating highest level or efficiency within the organization. It also
includes different department are as follows:
 Housekeeping:This department is related with the cleaning and maintaining the rooms of
hotel in order to increase positive experience of customers. In context of this, the main
focus of InterContinental Hotel is to keep the venue clean that help in improving positive
experience of the customers within the organization.
 Front office: The focus of this division is to effectively communicate with with visitors
and guest for understanding their actual demand towards its services In context of
2

InterContinental Hotel, front office is also resolve Queries and problems of travellers.
With the assistance of this customers are easily attracted towards its services.
Functional department: It is related with wider area of a business in which different division
are includes that help business organization to improve performance level. All the functional
department of InterContinental Hotel are as follows:
 Finance department: It is consider as an important part of organisation in managing
fund. Mainly, the main focus of this function is to planning, organizing, auditing and
controlling organization finance to improve the productivity level (Kim, Vogt and
Knutson, 2015). Along with this, it also help in handling income and expenses of the
company which may increase the stability of hotel in market place.
 Human resource department: This function help in managing workers activities at
workplace so that they can easily perform their task and attain set goals. In addition of
this, HR department of InterContinental Hotel easily hire and trained their employees to
enhance their performance level at market.
P3 The contribution of hospitality industry to local, national and international economies.
Hospitality industry is consider as a fastest growing sector which contribute in enhancing
economic condition of the nation. In this, business organization focus on inviting customers by
offering their quality services. This will increase market share of the company and at the same
time also accomplished positive brand image. Along with this, it also contribute to local, national
and international economics that can be understood by following points:
Local economy- Hospitality industry put huge impact on local level by encouraging
customers to spend more on hotels and another services. This will improve their positive
experience as well. Along with this, it also provide work possibility to the local people which
may contribute in improving their loving standard. It may help in improving local economy of
the nation.
International economy- At global level, various business organizations are function
their business and serve their products in over the world. In this regard, it instantly impart in
enhancing growth at international level by catering them services to its customers as per their
needs and demand. As it can be evaluated that hospitality industry put positive impact on
international level by increase various job opportunities for large number of people.
3

National level- Under this level, it also put huge impact because it is third largest
growing industry at the national level as it give various job opportunities to the people with the
aim of improving their living standard. That positive contribute in UK economy. The main
reason behind his is that, customers are highly consume food products to satisfy their need. It
may help in generating huge amount of profitability within the market.
TASK 2
P4 Investigate a range of different operational roles within the hospitality industry
In hospitality industry, every department is focus on managing as well as controlling
entire activities of the organisation in order to accomplished their positive image. In this regards,
every workers in hospitality industry have various part and responsibilities to effectively operate
business activities in systematic manner (Šerić, Gil-Saura and Ruiz-Molina, 2014). Thus, it is
important for every individuals to effectively perform their allotted task so that positive
outcomes can be easily attained. In this context, different operational roles in InterContinental
Hotel are as follows:
Role of room division manager-
Under this, the main role of manager is to effectively manage as well as guide all the
workers who are working in housekeeping department. Along with this, they also responsible for
making better coordination with all the departments present in the organization. By this division
manager of InterContinental Hotel can easily fulfilled demand of customer. By this, room
division manager can easily maintain positive relation with their customers and also provide
them quality services to attain their higher satisfaction.
Role of receptionist- Under this department, the main role of receptionist is to keep
record of customers information that is related with their reservation of rooms, check in and
check out date and many more. In context of InterContinental Hotel, Receptionist focus on
collecting information from housekeeping department of company towards the customers. Along
with this, receptionist also focus on solving queries and problems of customer's that improve
their experience towards the company and its products as well.
Role of housekeeping- It is also an important department which focus on keeping clean
and hygienic environment to its customers in order to enhance their positive experience. visitors.
This will help in enhancing positive image of the company at market place,
4

P5 The skills required for roles within the hospitality industry and current skills shortages
It is important for every people who are working in a hospitality industry to have
appropriate skills and abilities to effectively perform allotted job roles and responsibilities at
workplace. It help in improving their overall performance within the company. All the important
skills are there that are required by workers within hospitality industry:
Technical skills: It is one of the important skill that required by employees to effectively
execute task activities in an effective manner (Wang, 2016). In context of hospitality industry,
manager focus on developing their skills by providing them better training and development
activities to every employee's in which they can easily handle their customers and provide them
quality services accordingly. In InterContinental Hotel, receptionist must have this type of skill
to handle technical machines and equipments in an appropriate manner.
Management skills: In business organization, it is foremost skill for workers to manage
their task activities in systematic manner. If employees of InterContinental Hotel have this type
skills then they easily perform their job role and task within the stipulate time frame. Along with
this, room division manager must have this type of skill so that they can easily make better
coordinate with front office department and provide better services to its visitors.
Communication skill: In InterContinental Hotel, employee's have good communication
skill through which they easily resolve problems and demands of customer's. By using effective
communication skill, each and every department of hotel easily carried out entire activities
without any problem. This will directly contribute in satisfying visitors needs and wants towards
hotel services. It may contribute in increasing profitability level of the company at market place.
TASK 3
P6 PESTEL Analysis of hospitality industry
For attaining growth in market place, it is crucial for business organization to effectively
analysis external environment as it directly impact on entire activities of the company in both
positive and negative manner. Thus, it is essential for company to analysis it effectively so that
negative impact can be easily reduced and also improve overall performance at market place.
For this, organization use PESTLE analysis to measure the overall performance at
competitive market place.
5

Political factors: The UK government policies includes various aspects that affect the
productivity of organization. In this, InterContinental Hotel is responsible for managing their
activities as per political factors that may lead in enhancing their performance level at market
place.
Economical factor: This factor is also an important which is related with Economic
Cycles in which the performance of InterContinental Hotel is nearly related to the economic
performance of the UK. In this context from last two decades he growth is built as per increasing
globalization. Along with this, consumer available income has stay stable, the increasing
difference in the society will negatively impact on consumer sentiment.
Social factor: This factor is related with customers preferences, belief and values of that
directly affects overall performance of the company at market place (Ozturk, 2016). As
customers demand are frequently changed that negatively impact on the performance level of
InterContinental Hotel. For this company needs to effectively analysis their needs and provide
them same.
Technological factor: It is one of the important factor for hospitality industry as they
adopt advance and latest technologies for competing the task in systematic manner. In this
context, InterContinental Hotel also adopt latest technology to provide quality services to its
customers in order to increase their satisfaction level. Along with this, company also provide
online booking facility to its customer's by which they easily book their services within wasting
time. By using this, company may enhance their brand image and also invite large number of
customers towards its services.
Environmental factor: This factor is also play a vital role in enhancing brand image of the
company. As Environmental factors are related with priorities of product innovation within the
organization. In this context, company is needs to aware about environmental factors and also
designed products as per environmental standards and expectations.
Legal factor: It is related with laws and regulations that set by government of a particular
country. In this company is responsible to follow all the set lows related with operations and
customers as well. By this, firm can enhance their working actyivities that contribute in
improving overall image. If InterContinental Hotel does not follow legal laws then they reduce
their performance level.
6

P7 Undertake a SWOT analysis for hospitality business.
It is crucial for every business organisation who operate their activities in hospitality
industry is to analysis their actual performance at market place. This will help in making
business activities more effective and at the same time also enhance the chances of attaining
success at market. For attaining the same, InterContinental Hotel use SWOT analysis are as
follows:
Strength Weaknesses
 InterContinental Hotel focus on
customers experience and their
relationship that may improve positive
brand image.
 Company use Occasion wise brand
portfolio.
 Strong digital outlook and
implementation is also a strength of this
company.
 The main weakness of this hotel is poor
information security system within the
market.
 Company does not have economic hotel
brand.
Opportunities Threats
 InterContinental Hotel tries to
increasing international tourist travel
with the aim of attaining higher growth
level.
 Technology facilitated bookings is also
a major opportunity for company to
enhance customers base and
profitability level as well.
 Increased dependencies on
intermediaries is a big threat for
InterContinental Hotel at market.
 Changing consumer buying behaviour
from online channel is also consider as
a big threat for InterContinental Hotel.
7

TASK 4
P8 The implication of current and potential trend in the hospitality industry
In hospitality industry, trends are play a vital role in attaining set goals and objectives. In
this company is responsible for serving their services as per market trends. In this context there
are some current and potential trend in the hospitality industry:
Current Trend:
 Internet services- It is one of the important and latest trend that is recently going in the
hospitality industry and market place as well. In this regard, the main purpose of this type
of trend is to provide adequate and actual information about hotel services and its
planning activities to its potential customer's (Tresidder, 2015). This will improve the
customers base of the company.
 Tech explosion- In today's time every customer's are focus on quality services and also
demanding for better services along with its affordable prices. For providing them same,
hospitality industry adopt latest technology that can help in fulfilling customers needs and
wants accordingly.
Future Trend:
 Tracking facility- It is also an effective trend that is related with the future aspect as the
main of this type technology is to track the visitors. This will contribute in inviting large
number of customers towards its and also help them in providing them better satisfaction.
 Direct Booking- Inter- This type of future trend is also used by InterContinental Hotel
by this they can launch online booking facility for their customer's in order to make them
loyal towards its services. With the help of this, they can easily book rooms in the hotel
as per their demand and budget as well. It also save customers time while booking room
in hotel.
CONCLUSION
Hospitality industry includes various trends that support in achieving set goals and
objectives. Along with this, different kind opportunities are also present in the market that lead to
increase in sustainability of hospitality industry for longer period of time. Furthermore, SWOT
and PESTLE analysis is also used by business organization for analysing external market
8

environment. At last, analysis of effective plans is also contribute in giving high competition to
the competitors at market place to attain competitive advantage from its rivals.
9

REFERENCES
Books and journals
Wang, C. J., 2014. Do ethical and sustainable practices matter? Effects of corporate citizenship
on business performance in the hospitality industry. International Journal of
Contemporary Hospitality Management. 26(6). pp.930-947.
Wang, Y. F. and Tsai, C. T., 2014. Employability of hospitality graduates: Student and industry
perspectives. Journal of Hospitality & Tourism Education. 26(3). pp.125-135.
Kim, M., Vogt, C. A. and Knutson, B. J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research. 39(2). pp.170-197.
Šerić, M., Gil-Saura, I. and Ruiz-Molina, M. E., 2014. How can integrated marketing
communications and advanced technology influence the creation of customer-based
brand equity? Evidence from the hospitality industry. International Journal of
Hospitality Management. 39. pp.144-156.
Wang, C. J., 2016. Does leader-member exchange enhance performance in the hospitality
industry? The mediating roles of task motivation and creativity. International Journal of
Contemporary Hospitality Management. 28(5). pp.969-987.
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.
Tresidder, R., 2015. Experiences marketing: A cultural philosophy for contemporary hospitality
marketing studies. Journal of Hospitality Marketing & Management. 24(7). pp.708-726.
10