The Contemporary Hospitality Industry: Types of Businesses, Operational Roles, and Skills Required

This report discusses the different types of businesses in the hospitality industry, their contribution to the economy, and the range of operational and functional departments within a chosen hospitality business. It also covers the skills required for different operational roles, the impact of skills gaps, and valid solutions for addressing them.

Unit 1 The
Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
Number of different types of businesses in hospitality industries with the range of products
and services............................................................................................................................3
Contribution of hospitality industry to local, National and international economies............4
Range of operational and functional departments within a chosen hospitality business.......5
Interrelationships of the operational and functional units......................................................6
Franchising and licensing agreements has influenced global development of hospitality
industry...................................................................................................................................6
Global growth, franchising and licensing developments have contributed to the economic
worth.......................................................................................................................................7
TASK 2......................................................................................................................................7
Different operational roles in hospitality industry.................................................................7
Skills required for roles in hospitality industry and current skills shortages ........................8
Review the skills gaps in relation to a range of different operational roles...........................9
Impact that skills gaps and make valid solutions for addressing these skills gaps................9
TASK 3 & TASK 4..................................................................................................................10
CONCLUSION........................................................................................................................10
REFERENCES.........................................................................................................................11
Books and Journals:..............................................................................................................11

INTRODUCTION
Hospitality industry is becoming one of the fastest growing industries in the business
environment. Hospitality industry is including a large network such as lodging services, food
services, travel related services, recreation services, etc. These all types of services are
providing in the hospitality industry (Rhou and Singal, 2020). Organisations under hospitality
industry are looking forward to expand their business with the help of attracting new
investors. For the purpose of expansion of the business, it is necessary to understand the types
of business within the hospitality industry and diverse product and services. In this context,
Royal Lancaster London is undertaking which is the hotel come in the hospitality industry.
They are known because of their unique services in London. They are expertise in hospitality
services as they give assurance to each and every guest that their experience will be become
the delightful. This report will be cover different types of business and their contribution in
the hospitality industry. In addition to this, it also includes operational and functional
departments, skills required for operational roles.
MAIN BODY
TASK 1
Number of different types of businesses in hospitality industries with the range of products
and services
In hospitality industries, there are many types of businesses with a diverse range of
products and services found (Breier, and et.al., 2021). Day by day the businesses under
hospitality industry are increasing as they found a growth and success in this industry. Now
every person is focusing on to open a hotel or restaurant so that they will be able to achieve a
growth and success. There are some important different types of businesses in hospitality
industry are mentioned below:
Food and beverages
It is the largest segment of hospitality industry which is estimated to provide all types
of meal to the customers (Goryushkina and et.al., 2019). It comprises of meals, beverages and
snacks for the purpose of immediate consumption. They will be providing meals on and off

the premises. These types of services are generally provided by hotels, motels, resorts, theme
parks and restaurants. In today's business environment, food and beverage sector is becoming
one of the best businesses for people.
Travel and tourism
It is another business which covered under hospitality industry. It deals with the
services related to people from place to place. It includes planes, buses, trains, ships, cabs,
etc. The important function of travel and tourism is to encourage people for the purpose of
travel. It is depend upon the customers that how they spend their vacation and business trips.
It also depends on their income that how much they can spend on hospitality.
Lodging
In this type of business, organisations are providing accommodation for a particular
time period such as one or more nights. These types of services are also providing by hotels
where people can sleep for overnight. It is very necessary for every person when they are
looking forward to any vacation to find an accommodation where they can sleep or take rest.
Recreation
Recreation is the activity where people are focusing on enjoyment, relaxation and rest.
In order to fulfil these needs, there are many organisations which are doing recreation
business so that they can refresh people's mind and body (Hassi, 2019). It includes
entertainment business also such as movies on theatre that attract people for the purpose of
entertaining them.
These are the some important types of business which covered in hospitality industry.
It is found that they are growing their business very well and planning to expand their
business in Asia. For that purpose, they are looking forward to investors who are able to
invest in their companies for expansion.
Contribution of hospitality industry to local, National and international economies
It is found that tourism is one of the largest and most successful industries in UK.
This shows that hospitality industry is playing an important role in UK and contributing a
good amount. It is the fifth largest in terms of international visitor expenditure in the world.
In terms of international competitiveness, tourism of UK is ranked at 5th position. It is found
that they are generating £130 billion revenue for the economy of UK. In addition to this, there

are also providing employment to approximate 3.1 million people. Hospitality industry is
very important for local economies. It is found in the Manchester city of London that they are
always try to show their culture and beauty of location which covered in hospitality industry.
This helps them to improve their infrastructure and culture of place. It is just not contributing
to local economies but also contributing and national and international economies. This can
be understood by analysing the revenue generated through tourism in UK. It clearly shows
that how they are generating revenues (Altinay and Arici, 2021). They are also providing lots
of employment opportunity to the local people of UK. In addition to this, hospitality industry
is becoming one of the fastest growing industries in world which increase the business and
revenues at international level. It is found that hospitality industry is contributing in
international economies also. This is the reason that why every government is focusing on
promoting hospitality industry businesses.
Range of operational and functional departments within a chosen hospitality business
In hospitality industry, hotels are playing an important role as they provide food and
beverages and lodging services to the people (Menicucci, 2018). This is the reason that Royal
Lancaster London is growing every year very well. There are many operational and
functional departments in hotels that provide various amenities and services to the customers.
Operational department of Royal Lancaster London Executive: In Royal Lancaster London, there is requirement of Executives who are
responsible for day to day work. These people are necessary for the purpose of
achieving goals and objectives of a hotel (Backman, Klaesson and Öner, 2017). They
are giving instructions to the subordinate employees so that all of them work
accordingly. Front desk services: Front desk services performed by the front officers. They are the
first person who get a contact with the customers. It is crucial for Royal Lancaster
London to make their staff skilful so that they will be able to confront to their
customers. Housekeeping: Housekeeping department is playing an important role in the hostels
as they are responsible for cleanliness and management of all areas such as rooms,
public areas, etc.

 Maintenance: It is the department which is very important for maintaining all the
work in the hotel such as inventory management. In order to run a hotel successful,
maintenance is necessary for all equipment and property of Royal Lancaster London.
Functional department of Royal Lancaster London Accounting: It is highly significant in order to manage all the financial transactions in
Royal Lancaster London. There is no organisation that run their business without
accounting department (Quinn and Buzzetto-Hollywood, 2019). It is found that every
day there are many transactions done which is necessary to record. This can be done
by accounting department.
 Marketing and sales: Marketing and sales are the important department of
organisation as they are necessary for promoting goods and services in the market
place. Royal Lancaster London needs to appoint marketer who are able to promote
their services in market effectively.
Interrelationships of the operational and functional units
After understanding of all the department of hospitality industry, it is found that
operational and functional both department are necessary for an organisation. There is an
interrelationship exists between operational and functional department (Singh and Jaykumar,
2019). For example, operational department such as front officers is recruited or appoint by
the HR department. HR department is the functional department of organisation and this
shows that there is an interrelationship between operational and functional department. In
addition to this, operational and functional department of an organisation needs to collaborate
with each other if they want to run their hotel successfully.
Franchising and licensing agreements has influenced global development of hospitality
industry
In order to expand a hospitality industry, it is found that every hotel is now focusing
on franchising and licensing agreements. Franchising agreements is refers to an agreement
between franchiser and franchisee in which franchiser give permission to the franchisee that
they can use their name and fame (Stylos and Zwiegelaar, 2019). Whereas licensing is the
agreement in which it allows one party to use and earn revenue from the property of owner.
These both are effective in order to expand the business. This will gives a great influence on

global development of hospitality industry as hotels can easily run their business in other
countries also with the use of these agreements.
Global growth, franchising and licensing developments have contributed to the economic
worth
In today's business environment, everyday the competition is increasing and every
organisation wants that they will grow their business at global level. It is found in hospitality
industry that they are using franchising and licensing so that they an expand their business at
global level. These activities are not only providing benefits to the organisations but also
gives a great contribution in the economy. They are giving opportunities of employment,
revenue generation, etc. In this way, global growth, licensing and franchising contributed in
the economic worth.
TASK 2
Different operational roles in hospitality industry
In hospitality industry, it is found that there are many operational roles are found that
plays an important role in order to manage the activities of an organization (Denizci Guillet
and et.al., 2019). It is necessary for Royal Lancaster London that they need to divide
responsibilities according to the roles. Some important operational roles are mentioned
below:
Operational manager
Royal Lancaster London is the luxurious hotel that run their business very well but for
that purpose, it is identified that they need operational managers so that they will be able to
manage operations effectively and efficiently. Operational managers of Royal Lancaster
London are looking the entire operations of lodging. It includes human resources, security,
public relations, food and service, housekeeping, sales and finances, etc.
Supervisor
Supervisor is an important employee in Royal Lancaster London for supervising the
activities of hotels. It is found that supervisor of Royal Lancaster London acts like a leader
who ensures all the work will be complete on time. Important functions and duties of
supervisor are supervising all departments, managing hotel staff, maintaining inventory, etc.
Front officer manager

These are the people who are playing an important role in the Royal Lancaster
London as they are the first person that gives a first impression on customers. It is crucial for
front office managers that they should possess all qualities and skills which is able to give a
good impression. They are responsible for training and managing the front office staff,
dealing with guests, staff scheduling, etc.
Skills required for roles in hospitality industry and current skills shortages
Every day the competition is increasing in the marketplace that's why it is very
important for organisations in hospitality industry to build skills (Singh and Jaykumar, 2019).
There are many operational roles performed in the hotels in order to manage the operations.
Every manager and officer in the hotel required some essential skills so that they are able to
do their best. Some required skills are mentioned below:
Hard skills Target setting: It is very important for Royal Lancaster London to ensure about target
setting skills in their employees. If organisation wants to achieve their goals and
objectives then it is necessary for the managers and other officers of Royal Lancaster
London to set their target.
 Sales and marketing: These skills are very important for the purpose of promoting
their services in the market place. With the help of sales and marketing skills, Royal
Lancaster London is able to achieve their goals and objectives effectively.
Soft Skills Motivation: There are many situations come in the workplace where motivation
becomes necessary. The current example is COVID-19 in which all employees are in
the stress situation that how they earn (Ņikadimovs and Ivanchenko, 2020). At this
time, it is very important for the managers and leaders of Royal Lancaster London to
give motivation to all employees so that they are able to encourage towards
organisational goals and objectives. Leadership: Leadership is the skill which is required for leading people in Royal
Lancaster London in order to achieve their set targets. Leadership is necessary in the
organisation so that they will be able to manage the work on time.

 Multitasking: It is found that in hospitality industry, there are many task performed
by one person. That's why it is necessary for them that employees of Royal Lancaster
London needs to possess multitasking so that they will mange their work effectively.
After finding the skills, it is also identified in the hospitality industry that skills
shortage is increasing due to the increase in demand of skills. That means now organisation
are finding employees who possess all important skills. Demand of skills is increasing very
fast speed, that's why skills shortage is also increasing. Every day the demand and
expectation of customers are increasing and for satisfying customers, it is found that
employees need more and more skills which increase the skill gaps and shows skill shortages.
Review the skills gaps in relation to a range of different operational roles
Skill gaps is the difference between the expected skills and actual skills. In present
scenario of an market, it is found that this difference is continuously increasing due to the
competition, lack of awareness, etc. There are many operational roles identifying in the
organisation and it is necessary that they should possess all skills. But in reality it is found
that there is a skill gaps which needs to be reduce. There are many operational roles such as
operation managers, front officers, supervisor, etc. in the hotel who performed their work in
order to achieve goals and objectives of an organisation. For that purpose, they should
possess had as well as soft skills. But it is found that skill gaps is increasing such as operation
manager has lack of multitasking skills.
Impact that skills gaps and make valid solutions for addressing these skills gaps
In today's competitive world, it is found that skill gaps is increasing which should be
reduce by organisation. This can be done with the help of effective training and development
programs. For example, technical skills are not possess by all employees of Royal Lancaster
London and their uses is increasing. That's why it is significant for Royal Lancaster London
to give proper training and development program to employees so that they will be able to
reduce the skill gaps. Skill gaps is providing a negative impact on the organisation and they
will be not able to achieve their goals and objectives. After analysing the impact of skill gaps,
it is crucial for an organisation that they should found out the possible solutions for reducing
skill gaps. This will assist them to reduce the negative impact of skill gaps and they are able
to achieve their goals and objectives effectively. Some important valid solutions in order to
address skill gaps are effective training and development program, make the culture of
learning, self assessment, motivates towards organisational goals and objectives, etc.

TASK 3 & TASK 4
In PPT
CONCLUSION
It can be concluded from the above discussion that hospitality industry is increasing
their business very well. It becomes essential for the hospitality industry that they should
examining the current market so that they will identify the necessary requirements. This
report discussed structure, scope and size of hospitality industry. It is analysed that there is
necessary for organisations to understand the requirement of current and anticipated skills.
This report also discussed the impact of skill gaps so they will be able to overcome them.

REFERENCES
Books and Journals:
Altinay, L. and Arici, H.E., 2021. Transformation of the hospitality services marketing
structure: a chaos theory perspective. Journal of Services Marketing.
Backman, M., Klaesson, J. and Öner, Ö., 2017. Innovation in the hospitality industry: Firm or
location?. Tourism Economics, 23(8), pp.1591-1614.
Breier, M., and et.al., 2021. The role of business model innovation in the hospitality industry
during the COVID-19 crisis. International Journal of Hospitality Management, 92,
p.102723.
Denizci Guillet, B., and et.a., 2019. What can educators do to better prepare women for
leadership positions in the hospitality industry? The perspectives of women
executives in Hong Kong. Journal of Hospitality & Tourism Education, 31(4),
pp.197-209.
Goryushkina, N., and et.a., 2019. Theoretical Aspects of entrepreneurial Education for
hospitality Industry. Journal of Environmental Management & Tourism, 10(4 (36)),
pp.835-841.
Hassi, A., 2019. Empowering leadership and management innovation in the hospitality
industry context: The mediating role of climate for creativity. International Journal
of Contemporary Hospitality Management.
Menicucci, E., 2018. The influence of firm characteristics on profitability: Evidence from
Italian hospitality industry. International Journal of Contemporary Hospitality
Management.
Ņikadimovs, O. and Ivanchenko, T., 2020. Soft skills gap and improving business
competitiveness by managing talent in the hospitality industry. Economics &
Education, 5(1), pp.36-48.
Quinn, K. and Buzzetto-Hollywood, N., 2019. Faculty and Student Perceptions of the
Importance of Management Skills in the Hospitality Industry. Interdisciplinary
Journal of E-Learning & Learning Objects, 15.
Rhou, Y. and Singal, M., 2020. A review of the business case for CSR in the hospitality
industry. International Journal of Hospitality Management, 84, p.102330.
Singh, A. and Jaykumar, P., 2019. On the road to consensus: key soft skills required for
youth employment in the service sector. Worldwide Hospitality and Tourism
Themes.
Singh, A. and Jaykumar, P., 2019. On the road to consensus: key soft skills required for
youth employment in the service sector. Worldwide Hospitality and Tourism
Themes.
Stylos, N. and Zwiegelaar, J., 2019. Big data as a game changer: How does it shape business
intelligence within a tourism and hospitality industry context?. In Big data and
innovation in tourism, travel, and hospitality (pp. 163-181). Springer, Singapore.

Nikolaichuk, O., 2019. Assessment of the impact of external factors on the development of
entrepreneurship in the tourism and hospitality industry in Ukraine. Herald of
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Wijesooriya, T.N., 2018. Issues and Influences Affecting the Global Tourism and Hospitality
Industry. 19th Conference on Postgraduate Research, International Postgraduate
Research Conference 2018, Faculty of Graduate Studies, University of Kelaniya, Sri
Lanka.
Aneeke, F.O., 2019. INVESTIGATING THE FACTORS HINDERING THE GROWTH
AND DEVELOPMENT IN HOSPITALITY INDUSTRY IN ABEOKUTA
METROPOLIS, OGUN STATE, NIGERIA.