Contemporary Hospitality Industry

This report provides an overview of the contemporary hospitality industry, including the different types of businesses within the industry and the diverse products and services they offer. It also explores the range of operational and functional departments, the contribution of the industry to the local, national, and international economies, and the skills required for different roles. Additionally, it assesses the political, economic, social, technological, legislative, and environmental factors that affect the development of organizations operating within the hospitality industry.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of business within hospitality industry and diverse products and services
they offer ...............................................................................................................................3
P2 Range of operational and functional departments ............................................................4
P3Contribution of the hospitality industry to local, national and international economies.. .6
TASK 2 ...........................................................................................................................................7
P4 Range of different operational roles within the hospitality industry.................................7
P5. Skills required for the different roles in a hospitality industry and shortage of current
skills........................................................................................................................................8
TASK 3 ...........................................................................................................................................9
P6 Assess the political,economic, social,technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry. .......9
P7 SWOT analysis of AccorHotels (IBIS)...........................................................................11
TASK 4 .........................................................................................................................................12
P8 Current and potential trends in the hospitality industry..................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
One of the diversified and wide industry is hospitality industry which comprises of
different sectorial firms which help in generating high returns from their business operations.
Various types of business included in hospitality industry are hotel chains, cafes, pubs, bars,
restaurants etc. In present scenario, hospitality industry is developing with very fast speed and
contributing in GDP and creating employment opportunities. This present report is based on IBIS
which is international hotel company owned by AccorHotels. This was founded in 1974 situated
in France (Dogru, T., and et. al., 2019). The objective behind this report is to provide brief
description about hospitality industry in UK with its scope, size, structure in economy. This
study will also analysis about skills required for performing their job roles along with current and
future trends in this industry. Also, this report will cover distinct types of hospitality industry
sector, its organisation structures and their contribution towards local, international, and national
economies. Lastly, it has been discussed about PESTLE analysis of hospitality industry along
with SWOT analysis of the selected international hotel a part of hospitality industry.
TASK 1
P1 Different types of business within hospitality industry and diverse products and services they
offer
The fastest growing industry is considered as hospitality industry as this emphasises on
providing quality of services (Dzhandzhugazova, E. A., and. et. al., 2016). This industry has
different types of businesses involved in hospitality industry with ample of products and services
in each sector they offer. Their is huge contribution in GDP by hospitality sector. Thus,
classification of hospitality industry has been discussed below:-
 Hotels- This is largest sector of hospitality industry and has huge growth prospectus as
this provides wide range of services to their customer's. The services which are provided
involves one bed guest rooms, food facilities, valet parking and many more. Hotels
charge prices for services being provided to customer's.
 Motels or Lodges- Motels are establishment which are specifically developed near
highways and major roads of country whereas Lodges are places which are developed
near airports so as to provide comfortable places conveniently for businessmen and
tourists. The services offered by Motels or lodges involves food facilities, low priced

rooms along with basic services which are also being provided by hotels. Here quality of
services and demand vary from market to market.
 Pubs, Bars and Nightclubs- As there is change in lifestyle among population of UK so,
demand for pubs, bars and nightclubs have rise. Still bars and pubs are suffering from
strict laws which are being enforced to curb smoke and drinking alcohol (Goh, E. and Jie,
F., 2019). For this reason pubs and bars have developed innovative and diversified
products so as to attract more and more customers. Their are sports, cocktail, wine,
family friendly bars so that each can captures every part of economy. Pubs, bars and
nightclubs is part of hospitality industry which has highest profit margin with no labour
cost.
 Guest Houses- This involves accommodation facilities to customer's at low prices. Here
services are confined only to breakfast along with premium services such as quality of
service and cleanliness. This emphasises on meeting needs and requirement of customers
as per industry norms (Jones, P., and et. al., 2016).
 Restaurant- This sector in UK offers wide range of food and services to customer's. This
sector is further classified into popular catering, fast-food outlets, fine dining, mainstream
catering and takeaways. For popularity and growth of these organisations depend upon
dining quality, and ratings given on the basis of Michelin stars. The services provided by
this sector includes dining services, soothing ambience, parking services and full course
meals and operating cost in restaurants depends upon menu size and staff of unit.
P2 Range of operational and functional departments
Hospitality industry has wide and diversified scope which have different level of sectors
such as hotels, pubs, restaurants and bars to customer's. Hospitality industry has its own
functional and organisational structure which is classified as per industrial standards and
regulations. AccorHotels is renowned hotel group which is well known popular brand at
international level. In this organisational structures, firm are having well defined positions. They
help in defining hierarchical level of positions of each and every individual at AccorHotels.
Organisation structure are helpful in defining number of business positions along with authority
and responsibility for effective working in organisation. The organisation structure shows power,
responsibilities and roles of individuals for task being assigned to them. This also helps in
identifying flow of information between various levels of management. In hospitality industry it

is inclusive of hotels, pubs, restaurants and nightclubs which are owned by partners or owners.
The ownership depends mainly on size of hotels or any other service of hospitality industry.
Their is decentralisation of power and authority between individuals which are part of
organisation (Kandampully, J., and et. al., 2015).
Every organisation has different organisation structures whether flat or tall. In hotels tall
organisation structure is mainly adopted. With reference to AccorHotels there is tall organisation
structure where operations are divided efficiently which further helps in effective management of
work. Furthermore, if flat organisation structure is followed by organisations than it is
considered that owner can be either manager or chef. So in this case management structure is
segregated mainly into two parts front house and Back house operations. The front house
operations includes department of beverage, food, conference, banqueting and accommodation.
Whereas back house operations comprises of food preparation areas, finance, housekeeping and
areas of which customer's are unaware (Kim, M., and et. al., 2015).

P3Contribution of the hospitality industry to local, national and international economies
Hospitality industry is having huge growth prospectus because of increasing number of tourists
and travellers. This provides certain benefits to local, international and national economies of
country. Their is major contribution of hospitality industry in growth, survival, GDP and
development of economy. This is generally concerned with travelling to place other than home
country for leisure, vacation, businesses etc. this contribution led to increase in demand of
products and services (Lopes, M., 2016).
The UK hospitality industry is very immense and it has generated the large number of
employment opportunities for the local people. It has employed around 2.4 million people as per
the 2017 data and 1.2 million in around 170,000 commercial set up. Therefore, it is fifth largest
industry in UK which is providing employment to many people and help to raise their standard
of living. This industry has generated the revenue of £90billion and out of which around
£34billion become part of GDP and national income of economy. Apart from this, VAT rate
from the restaurants has also created the 53900 jobs in the country as government charge very
high rates. (Economic Contribution of UK hospitality industry, 2019 ).
The hospitality industry has major contribution in UK economic development because of
creation of employment opportunities, the vast number of people are employed and contributes
in per capita income (GDP) of the country which further helps to raise standard of living of the
people in the country. Also, there is creation of business in case of shopping, travels, sightseeing
and many more which further leads to overall growth and development of country.
Similarly, the international tourist also provides strong contribution in UK economy,
because they travel by air which increases the revenue for the airways and travel and tourism
industry. Then being from the international countries, they will also do shopping which will
contribute in the development and growth of the local economy. Furthermore, the franchising
and licensing has a immense contribution in developing global hospitality brands in UK. Thus,
they will generate higher level of tax for the country and improves the overall economic
condition of the UK.

Illustration 1: Economic Contribution of hospitality industry.2019
TASK 2
P4 Range of different operational roles within the hospitality industry
Hospitality industry has very wide scope and this also concerned with creation of jobs.
Their are various operational roles in hospitality industry which are essential for understanding
and framing of strategies and policies so that customer's get maximum satisfaction (Melissen, F.
and Sauer, L., 2019). The various operational roles at AccorHotels are as follows:-
 Housekeeping: The main task of this department is to keep premises and surroundings
free from dirt and dust so that customer's feel more comfortable. Also their job is to
maintain hygiene in whole organisation so that there is less spread of diseases and
customer's loyalty is maintained. This forms part of operational department with
objective to provide comfortable environment with focus on maintenance of rooms and
hotel premises. This facility of housekeeping is available to customer's for 24*7 so that
customer's never feel dissatisfied and also contributes towards reputation of company.
 Marketing and sales: Every organisation establishes and carry out their business
operations towards accomplishment of business goals and objectives by satisfying

customer needs and requirements. No organisation can sustain for long term without
effective marketing and sale. Thus, manager of marketing department of Accorhotels
promotes its various products and services with social media platforms so that customer
are fully aware of what is prevailing in the market. It serves products for customers as
per their expectations so this department has a strong focus on building relations with
the customers (Penela, D., and et. al., 2019). Thus, this department will use various
promotional tools such as social media, advertisement, public relations in order to make
people convey about the new offerings and also offers discounts and moreover this will
help in increasing turnover with increase in sales for company which will have a direct
contribution in generation of revenues.
 Front desk services: This department of AccorHotels is involved in effective and
proper communication with customers. According to this department the manager or
other representative person are held accountable and responsible for making, managing
and holding the bookings. They work effectively to resolve the queries of their
customers by proper and complete interaction with them.
P5. Skills required for the different roles in a hospitality industry and shortage of current skills.
Hospitality industry has very wide scope at global level as this involves customer's from
different cultures, countries and also they visit for different purpose. So, various skills are
required to perform different roles by staff or employees of AccorHotels which are described
below:-
 Technical Skills- Their is continuous improvement and updates in technologies which
affect working of industries under hospitality sector. Employees or staff must have
knowledge about latest technology as this further helps in designing and development of
products which helps in developing reputation of company (Porcu, L., and et. al., 2019).
 Language Skills- Hospitality industry has very wide scope so this comprises of
employees and customer's from different backgrounds so employees must have
knowledge about various languages and have ability to understand languages spoken by
customer's from different countries. As this skill is very much essential to be successful
in this competitive marketplace.

 Management Skills- This skill is mainly associated with management of business
operations of hospitality industry. Without effective and efficient management it would
be very difficult for managers and employees to manage and achieve great heights of
success with long term growth and survival (Radojevic, T., and et. al., 2015).
Moreover hospitality industry has staff with shortage of skills which is concerned with technical
know-how, innovation skills and ability to influence people and many more. Their is shortage of
skills because there are frequent and rapid changes in sector of hospitality in technology and
innovation aspects. Their is need of continuous improvement in product line and knowledge of
employees as lack of skills create burden on organisation also it decreases efficiency.
TASK 3
P6 Assess the political,economic, social,technological, legislative and environmental factors that
affect the development of organisations operating within the hospitality industry.
 Political Factors- These factors play very crucial role in economy of every country.
Political factors put direct and deep impact on the hospitality industry. Hospitality
industry is backbone of government as major part of this industry is contributed to GDP
Of country. As, government charges high tax rates from luxury and five star hotels. To
support growth and development government takes various decisions for hospitality
industry. In hospitality industry, IBIS hotel don't face any threat as it helps in reducing
level of terrorism and build cordial relations with EEC country as they conduct their
business at global level (Roma, P., and et. al., 2019).
 Economic Factors- Various economic factors includes economic growth, interest rates,
exchange rates and taxation policies. These factors leave major impact on behaviour of
firm. Hospitality industry is affected mainly by economic conditions as they affect
demand and affordability of tourists and local people. Also, frequent exchange rate
fluctuations affect both long and short term investment plans of hospitality industry. If
the economy is facing crisis and deflation situation than hotel and airline industry have to
decrease their prices so as to maintain their profitability and business results.
 Social Factors-The social factors as compared to other factors also helps in making
hospitality industry flourishing. Different social factors comprises of culture, tradition,
demographics, attitudes, norms, roles, media activity and acceptance. If there are changes

in social factors than this will put negative impact on demand for products and services
offered by industry. With reference to Accor Hotels can adopt various media and social
platforms for building network for conducting their business at large scale and expand
their business operations (Segovia-Pérez, M., and et. al., 2019).
 Technological Factors- change in technological factors highly affects the business
operations of hospitality industry to a very large extent. The latest technological
advancement when adopted by companies further helps in influencing customers by
facilitating communication and bridging gaps by transferring information at global level.
Furthermore, these factors assist both tourists and hotels by enhancing their services and
also their work load is reduced. In context of AccorHotels they have adopted latest
technologies for hotel booking, electronic media card along with up to date information
systems which helps in influencing advantages for both company and customer's (Su, N.
and Reynolds, D., 2019).
 Legislative Factors- These factors are very much responsible for growth and survival of
hospitality industry. Their are many legal factors comprising of legal laws, safety and
security laws. It is mandatory for every country to follows these laws as these further
helps in eliminating discrimination and ensure health and safety of both staff and tourists.
Now-a-days customers are attracted towards leisure or hotel when they feel secure and
safe and they have surety that all legal laws are being followed (Teng, H. Y., 2019).
 Environmental Factors- Environment, weather and climatic conditions put direct and
major impact on growth and survival of hospitality industries. Some of environmental
factors which impact business operations of hotels are floods, storms, earthquake and
other related factors. In context of AccorHotels they are now emphasising on developing
products as per environmental standards which helps in increasing both profits and
reputation of the company.

P7 SWOT analysis of AccorHotels (IBIS)
STRENGTH
 Accorhotels has its presence in 92
countries, with 530000 rooms along
with 4400 hotels. This group caters to
groups of all income types which
includes Ibis, Novotel, Sofitel,
Fairmont, Raffles and Banyan Tree.
This shows that is covers a huge
customer base (Dogru, T., and et. al.,
2019).
 This chain of hotels maintains database
of around 60 million guests along with
their preference so that they can fulfil
customer's expectations. This data is
further used to manage digital
campaigns which are running on
various social media platforms.
 Accorhotels have years of know-how,
experience and expertise in hospitality
industry.
 Now AccorHotels is focusing on
franchisees and contracts as this further
increases their profitability margins.
WEAKNESS
 Their is more emphasises given on sub-
brands rather than focusing on main
brand so, this is creating disconnections
from customers mind regarding main
brand Accor which is now hardly
known.
 AccorHotels is losing their business
and profitability to small hotels, online
businesses like Oyo rooms, Airbnb.
 The company have suffered huge losses
because now focus is given franchising
as it helps in cutting cost but this has
led to decline in quality of services
because of lack of proper and adequate
attention (Dzhandzhugazova, E. A.,
and. et. al., 2016).
OPPORTUNITIES
 Now-a-days Hotel management
education has gained very much
popularity at international level so,
AccorHotels can grab this opportunity
and build academics and provide
THREATS
 Their are many competitors for
AccorHotels worldwide. Some of rival
firms are Starwood, Cendant
Corporation, Best Western, Hilton

students with global experience and
knowledge.
 AccorHotels have opportunity of long
term growth and sustainability at both
global and national level.
 Also, AccorHotels can plan for
attractive packages for customer's
(Goh, E. and Jie, F., 2019).
 AccorHotels has gained very much
popularity in many parts of world so,
they can plan for expansion and
diversification in parts of Asia and
Africa.
Corporation etc.
 For AccorHotels the threat can be
economic conditions at global level as
this hamper sales for their luxury and
upscale segment.
 The business of AccorHotels can have
negative impact in both local and
international market due to Brexit, US
and China trade war, instability in
middle east (Jones, P., and et. al.,
2016).
SWOT analysis is business and strategic analysis of external opportunities and threats and
internal strength and weakness. For decision-making process all factors of SWOT analysis are
being considered as this help in effective and efficient decisions which helps in getting enhanced
results with increased profits. Also, SWOT analysis helps in getting knowledge about internal
and external capabilities as mainly decisions are based on capabilities and competencies.
Furthermore, this analysis also help to take decisions as to how to overcome threats which are
prevailing in competitive market (Kandampully, J., and et. al., 2015).
TASK 4
P8 Current and potential trends in the hospitality industry.
Current trends in hospitality industry
In today's competitive world hospitality industry is tremendously growing and also
earning good returns on investment. This industry has high growth prospectus in market which
further helps in developing effective and innovative standards and policies to face fierce
competition. As to face competition industries in hospitality sector emphasises on providing

quality of services so as to gain competitive advantage and attract & retain more and more
customer's for long term. Innovative techniques and effective policies, standards have allowed
hotels to sustainable growth and survival in complex business environment. Also, this provides
certain benefits to customers as they get wide variety of options for products and services. It is
being expected that till 2020 there will be higher returns along with development and
enhancement of hospitality industry (Kim, M., and et. al., 2015).
As there is increase in international trade at global level due to liberalization policy this
industry has achieved great heights but also faced many challenges. Their are frequent
technological advancements so now there is rise of security concerns for both industry as well as
customer's. So, Government of UK have adopted and developed various security measures to
ensure safety and security of customer's/ tourists.
With respect to environmental factors hospitality industry is focusing on adopting
environmental and Ozone, Eco-friendly norms by emphasising on water scarcity and other
important renewable resources. With respect to this hotels have started installing solar panels and
making such innovations and up gradations by using technological advancements that there is no
or less wastage of electricity and other resources (Lopes, M., 2016).
Also, guests in hotels are now started focusing on their health and well-being. So, hotel
industry is focusing on fulfilling these expectations by providing well-equipped fitness centres,
vitamin- infused shower water, healthy food options, purified air, yoga space and in-room
exercise equipments as travellers are expecting innovative options and this will also help in
giving competition to rival firms.
Potential trends in hospitality industry
There has been tremendous growth of hospitality industry across the globe. As business
environment is dynamic and complex there are many potential and future trends which put
impact on development of hospitality industry. Some of trends of this industry are discussed
further:-
1. Management and Operational Trends- Their is increased scope for management of
industries in hospitality sector. Their will be rise in adoption of operational practices in
near future to achieve quality benchmarks. The hospitality industries are emphasising on
developing their own competitive image at marketplace in economy. Their has been

rising concern for enhancement and development so management and operational
activities are essential in hospitality sector. Franchising, contracting services and
individual entrepreneurs have achieved great heights at marketplace. These industries
mainly emphasises on managing business operations is such a way that they achieve
effective success by developing speed, quality and acceptability at marketplace
(Melissen, F. and Sauer, L., 2019).
2. Adoption Of Highly Advanced Innovative Technologies- In near future the potential
trend in hospitality industry will be that management will adopt latest techniques and
tools and develop innovative and unique products and services for clients of hospitality
industry at global level. Various sectors of hospitality industry have started adopting
robotics technology for conducting their business operations in unique and innovative
manner.
3. Adoption Of Social Media Platforms- Social networking sites and internet helps both
customer's and businesses in development of ways for making products and services
popular. Many services such as outsourcing employees, supply chain management,
cultural diversity and international employees have helped companies in strengthening
and maintaining goodwill within marketplace. Hospitality industries will adopt social
media platforms for knowing about preferences of customer's and their satisfaction level
(Penela, D., and et. al., 2019).
CONCLUSION
From the above report it can be concluded that hospitality industry has huge growth and
development prospectus. It has been clearly analysed that this industry has wide scope at large
scale along with front and back house operations. Also, it can be concluded that in UK efforts are
required to expand and develop hotel along with security and safety measures. Also, hotels must
focus on developing the skill set as there is shortage of skills in employees which leads to
inefficiencies. Also, this report provides understanding about distinct operational roles and skills
required to perform various tasks in operational departments. Lastly this report helps in
understanding about certain factors affecting hospitality business along with SWOT analysis of

Hospitality Business. Thus, it can be suggested that this industry is successful with high profit
margin.
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Online
Economic Contribution of UK hospitality industry. 2019. [Online]. Available Through:
<https://www.oxfordeconomics.com/my-oxford/projects/296333>.