Contemporary Hospitality Business

This report explores the contribution of the hospitality industry to national, local, and international economies. It discusses the interrelationships of operational and functional units in the business and the impact of licensing and franchising agreements on the global development of the sector. It also covers the range of operational roles within the hospitality sector and the skills needed for these roles. Additionally, it highlights the current skills gaps in the industry.

CONTEMPORARY
HOSPITALITY
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1 and LO 2.................................................................................................................................1
1 and 2 is covered in Poster.........................................................................................................1
3. Contribution of hospitality industry to national, local and international economies...............1
4. Interrelationships of operational and functional units in business...........................................2
5. Licensing and franchising agreements influenced global development of hospitality sector. 2
6. Global growth, licensing and franchising development contribute to economic worth of
hospitality sector..........................................................................................................................3
7. Range of operational roles within hospitality sector...............................................................3
8. Skills needed for roles within hospitality sector and current shortage skills...........................4
9. Skills gaps within hospitality industry in relation to number of different operational roles...5
LO 3 and LO 4.................................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Hospitality industry is one of the most flourishing sector in the world, it includes many
businesses like pubs, hotel, restaurants, bars, contract catering, clubs and other hospitality
services (Pereira-Moliner and et.al., 2015). Hospitality sector scope refers to number of
businesses that offer facilities and services to customers. Lodging, food and beverage, travel and
tourism, transportation, theme parks and cruise line businesses included in hospitality industry.
The present report is based on Hotel Hilton in Europe, they offer standards quality facilities to its
guest. It explains different types of business within hospitality industry and services and goods
that they offer. Range of functional and operational departments and contribution of hospitality
industry to national, international and local economies. This study justifies interrelationship of
functional and operational units within Hilton Hotel and also explains licensing and franchising
agreements impact global development of hospitality sector. Global growth, franchising and
licensing contribution to economic worth of this sector and skills required for range of various
operational roles. Furthermore, this report clarifies external environment factors impact on
development of companies' within hospitality sector and also define current and potential trends
as well as ability of Hilton hotel.
LO 1 and LO 2
1 and 2 is covered in Poster
3. Contribution of hospitality industry to national, local and international economies
Hospitality industry contributes to local level as they growing rapidly and provide
employment opportunities to local and residential people (Altinay, Paraskevas and Jang, 2015).
They provide many services such as food, lodging and accommodation to make it better than
before they required talented and skilled workers who help to serve its best and better to
customers.
Hospitality sector contribute nearly 10% of UK GDP, it defines that they are contributing
to national economies and help to grow and develop standards of UK economy the most (The
Contribution of Hospitality Industry To Economy Growth, 2017). Hospitality industry grow at
16.1 percent CAGR, with the increasing disposable income and middle class income, this sector
witnessing the positive economic growth. This sector is considered as major job provider across
terms indirectly as well as directly.
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Hospitality industry expands their businesses in many countries which contribute to
international economies as reduce gab between them. They follow CSR at international level
and support to provide 10.4 % of global GDP and provide 313 million jobs to people.
4. Interrelationships of operational and functional units in business
Marketing department interrelationship with HRM-
Marketing department help to promote Hilton hotel accommodation and lodging services
and drives sales of service or products (Kwok, Xie and Richards, 2017). They also make plans
for adversing job vacancies as required in company with the help of marketing team members.
HRM analyse needs of talented people in workplace which support to run business effectively.
Human resource management take help of marketing management for promoting requirement of
workers and provide the job offer to local people via TV and social media promotion in
marketplace.
Financial department interrelation with Marketing-
Financial department allocate funds to other department within Hilton Hotel, they provide
fund and fixed budgets to marketing activities. Marketing department promote products or
accommodation services in market under allocate and fixed cost given by financial section which
is beneficial for saving money of Company. Marketing and financial are the two pillars on which
profits and growth of firm is dependent. Marketing plan is successful as department have strong
base of finance because through finance company set their goals for marketing like sales prices,
cost of products and sales targets.
IT department interrelation with Marketing-
IT department managed all the technology related work which is mostly related with
marketing. Marketing function is based on technologies and all the techniques has been managed
with the help of IT section in Hilton Hotel.
5. Licensing and franchising agreements influenced global development of hospitality sector
Franchising is form of venture by which franchisor of services or products and methods
acquire distribution through affiliated franchisees or dealers. In simple words franchising is the
best opportunity for business that permit hospitality sector to start their business with small
company who already set their image in marketplace successfully. Franchising agreement is
binding and legal contract between franchisee and franchisor, it impacts development of
hospitality industry at global level. With the help of franchising agreements Hilton hotel deal
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with small or medium size organization legally and sell their services to people in other country
which help to increase their customer base than before.
Licensing is a type of business agreement in which one organization gives another firm
permission to manufacture their products for particular payment. It is one of the most profitable
and faster way to grow business (Chen, J. S. and et.al., 2017). Licensing agreement is legal
procedure that impact on hospitality sector and help in global development. With the help of
licensing process company will be able to serve their services or other facilities to another
country. License agreements provide full range of facilities to hospitality sector including
leasing, expert witness, development etc. it contributes to accomplish their business goals and
objectives of expanding its markets across the world.
6. Global growth, licensing and franchising development contribute to economic worth of
hospitality sector
Global growth contribute to economic worth of hospitality industry, as they expand their
business within other nation and provide quality service or products to customers that make their
business expansion process successful and they can be able to progress more than before.
Business expansion procedure of hospitality sector help to generate revenue and also support to
build their reputation in new market.
Licensing development also give its contribution to raise hospitality industry revenues
and increase financial budgets. With the help of licensing procedure they can make legal contract
in which they trade its services one place to another country and deal with other company.
Licenses pays royalties to hospitality industry in exchange for right to sell or purchase goods and
use technology. Licensing development contribute to hospitality industry as easily entered into
foreign markets.
Franchising development just like licensing and globalization also help to economic
growth of hospitality industry. Franchising allows UK hospitality industry to expand their
business without risk of failure or cost of quality. It permits organizations to grow using
resources of other company and generate profit better than before which is beneficial for
hospitality industry as well as other in foreign.
7. Range of operational roles within hospitality sector
HR manager-
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Human resource manager within hospitality industry or company responsible to plan,
coordinate and direct administrative functions of companies (Bowie and et.al., 2016). They are
accountable for recruiting, hiring and interviewing of new applicants and consult with high
executives on strategic planning. HRM is well versed in each of HR disciplines such as benefits
and compensation, employee relations and training and development.
Housekeeping manager-
Housekeeping manager with hospitality industry is responsible for orderly and efficient
management of servicing, cleaning and repairing of customers rooms. The role of housekeeping
manager in Hilton hotel is to check each and every movements of its staff members and provide
proper guidance to them as work perfectly which is beneficial for company.
Front desk receptionist-
Front desk receptionist role within hospitality industry or hotel is to communicate with its
guest effectively and provide all the information about their room bookings. They are also
accountable to communicate with resorts or hotel staff members on statues of people rooms.
Quality manager-
Role of quality manager within hospitality sector is to measure services or products
quality to guests (Langvinienė and Daunoravičiūtė, 2015). They are responsible to managed
each and every facility and provide the best quality services or other things to people that help to
make positive image in their mind.
8. Skills needed for roles within hospitality sector and current shortage skills
Quality manager skills-
Ability to undertake market research, technology skills, management skills, excellent
communication skills and maintaining quality standards skills required for quality manager role
within hospitality industry.
Front desk receptionist skills-
Computer knowledge, organizational abilities, technical prowess, multitasking capability,
strong interpersonal skills and communication skills is required within hospitality industry as for
working front desk receptionist.
Housekeeping manager skills-
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Time management skills, self motivated and directed, use of industrial cleaning products
and equipment skills are needed within hospitality industry for housekeeping manager which
help to perform their work effectively.
Human resource manager skills-
Decision making skill, training and developmental skill, communication skill and
budgeting skills are required for working as HR manager within hospitality sector.
Current shortage skills-
Lack of communication gap, decision making, lack of computer knowledge or
technology based skills and lack of knowledge related with industrial room cleaning products.
9. Skills gaps within hospitality industry in relation to number of different operational
roles
Operational
roles within
hospitality
industry
Skills Gaps Strategies How to implement Time Frame
Quality
manager
Communicatio
n
By managing
older workers
effectively and
through work
within
collaboration
quality
manager can
be able to
improve their
communicatio
n skills.
Quality manager can
improve their
communication skills
within hospitality
sector via
communicating with
older employees and
work collaboratively.
12 days
HRM Decision
making
Make plan and
situational
analysis.
Before taking any
decision related with
staff Human resource
1 week
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manager must make
plan that help to
improve their decision
making skill and also
support to make
effective decision.
Front desk
receptionist
skills
Computer
knowledge
Get the best
training
session.
With the help of
technology training
front desk receptionist
can be able to improve
their skills and easily
work with computer or
other technology based
tool.
15 days
Housekeeping
manger
Use of
industrial
cleaning
equipment
Seeking
knowledge of
new chemical
products in
context of
cleaning
Housekeeping
manager must take
training as well as
advise through high
management in
context of using
chemical goods or
cleaning equipment
within hotel.
20 days
LO 3 and LO 4
Covered in ppt
CONCLUSION
It has been concluded that lodging, travel and tourism and food and beverage business is
included within hospitality sector and provide their quality service or products to customers.
Marketing department work effectively with finance department, HRM and other within this
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sector and promote their activities in marketplace via making effective plan. It discussed that
political factors, social, environmental and another factors affecting companies working within
hospitality sector and also affect potential and current trends. Destination wedding and online
booking is current and potential trends within hospitality industry that must be followed by
hotels within their business structure. Furthermore, hospitality industry contribute economic
development and growth and also provide employment opportunities to people that help to
balanced their living standards. Franchising and licensing process support hotels and companies
within this sector for expand their business and increase profitability and productivity more than
before in UK.
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REFERENCES
Books and Journals
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
Ayoun, B., Rowe, L. and Yassine, F., 2015. Is workplace spirituality associated with business
ethics?. International journal of Contemporary hospitality management. 27(5). pp.938-
957.
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge.
Chen, J. S. and et.al., 2017. Business co-creation for service innovation in the hospitality and
tourism industry. International Journal of Contemporary Hospitality Management.
29(6). pp.1522-1540.
Cheung, C., Kong, H. and Song, H., 2014. How to influence hospitality employee perceptions on
hotel brand performance?. International Journal of Contemporary Hospitality
Management. 26(8). pp.1162-1178.
Gretzel, U. and et.al., 2015. Smart tourism: foundations and developments. Electronic Markets.
25(3). pp.179-188.
Jones, P., Hillier, D. and Comfort, D., 2014. Sustainability in the global hotel
industry. International Journal of Contemporary Hospitality Management. 26(1). pp.5-
17.
Kwok, L., Xie, K.L. and Richards, T., 2017. Thematic framework of online review research: A
systematic analysis of contemporary literature on seven major hospitality and tourism
journals. International Journal of Contemporary Hospitality Management. 29(1).
pp.307-354.
Langvinienė, N. and Daunoravičiūtė, I., 2015. Factors influencing the success of business model
in the hospitality service industry. Procedia-Social and Behavioral Sciences. 213.
pp.902-910.
Pereira-Moliner and et.al., 2015. The Holy Grail: Environmental management, competitive
advantage and business performance in the Spanish hotel industry. International
Journal of Contemporary Hospitality Management. 27(5). pp.714-738.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
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.
Online
4 Different Sectors of Hospitality Industry. 2017. [Online]. Available through :
<https://www.soegjobs.com/different-sectors-hospitality-industry/>.
The Contribution of Hospitality Industry To Economy Growth. 2017. [Online]. Available
through : <http://www.business2business.co.in/article/821/the-contribution-of-
hospitality-industry-to-economy-growth>.
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