Contemporary issues in Hospitality Industry - Report

Contemporary issues in
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.1 Scope, scale and diversity of hospitality industry with a global perspective......................1
P1.2 Management structure of chosen organisation...................................................................2
P1.3 Assessment of role of professional bodies in context of hospitality industry.....................4
TASK 2............................................................................................................................................5
P2.1 Approaches to meet staffing requirement of an organisation.............................................5
P2.2 Skills and qualification requirement of the personnel........................................................6
TASK 3............................................................................................................................................7
P3.1 Recent trend affecting hospitality Industry.........................................................................7
P3.2 Discussing image of hospitality industry and assessment of current situation of business 7
TASK 4............................................................................................................................................8
P4.1 Potential trends and development at present in hospitality industry...................................8
P4.2 Impact on predicted trends on chosen organisation............................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality is a term which relates activities of housing and entertaining guests
(Brotherton, 2012). It defines relationship shared between the host and guests. Hospitality
industry is a broad term which encompasses numerous activities such as accommodation,
transportation, theme parks and dining services. The contemporary hospitality sector can be
determined as multi-million dollar industry and therefore, several major organisations have
ventured in this segment to incur profits. The dependability of success of this industry directly
relates to disposable income possessed by tourists (Chen, Cheung and Law, 2012). It refers to the
amount which is spent by people in leisure activities. All the organisations which are catering
their services in this sector aim to create a wonderful experience for the customers in a profitable
manner.
There are variety of organisations operating in this industry that aim to attain a superior
business position in the market. It is a trend of adopting a right theme which helps in attracting
customers to business. This assignment is based on the working of Holiday Inn, UK. This chain
of hotels is owned and managed by the Intercontinental Hotels Group (IHG). The organisation
aims to provide excellent services to its customers by redefining the manner in which they are
served. The present report discuss scope, scale and structure of hospitality segment of this
industry. The emerging trends in this sector will be studied briefly along with essential skills and
capabilities which are possessed by the operating members. Further, recent developments in the
industry will be briefly talked about.
TASK 1
P1.1 Scope, scale and diversity of hospitality industry with a global perspective
Scope is defined to be an extent to which hospitality sector finds its relevance . As
mentioned earlier, hospitality industry is broad concept and there are numerous segments which
are covers by the same. Hospitality is often perceived in context of the hotels but there are other
industries too which are covered in this term such as accommodation, restaurant, bars as well as
travel and tourism. It is said that hospitality industry covers a staggering 38% of the total service
sector which easily justifies its importance and scope of operations. Therefore it can be
ascertained that Holiday Inn carries a bigger scope in contemporary market. This leading service
chain offers accommodation and restaurant services through its hotels and resorts. The other
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services which are offered by this industry provider are distinct hospitality experience, quality
food and place for meetings and events.
Scale of hospitality sector is broad. It can be said that it is one of fastest growing sectors
around the world. The data presented by Deloitte stated that estimated booking in upcoming
year stands at $1.6 trillion. This data is enough to support the statement that globalization has
been in favour of hospitality industry. There has been a significant increase in number of
travellers and customers around the globe. The main reason behind upliftment of this sector is
that people are looking to spend on leisure activities in a healthy manner (Davis, 2011). Reason
which supports same is increase in competition in the airline corporation which has resulted in
offering low cost conveyance facilities to people. Diversity in the hospitality sector is very well
noticed. The importance of such is that there is a rise in cultural exchanges among people which
leads to development of an ideal tourism industry (Human Resources and Cross Cultural
diversity of Holiday Inn, 2012). It is seen that encouraging diversity in an organisation will result
in attaining competitive advantage for business. The reputation of the company will be enhanced
as well.
P1.2 Management structure of chosen organisation
Management structure of a company depicts the manner in which authorities and
responsibilities are divided among employees working for an organisation. It is essential for a
business to adopt a suitable structure so that it will help in timely completion of goals and
objectives. IHG is a major hospitality service provider when it comes to Great Britain. This chain
of hotel manages around 5000 hotels around the world. Holiday Inn have always emphasised in
the development and retention of employees so that goals of business are fulfilled. The
management structure of the company is functional in nature and orientation. This means that
people with similar knowledge or functionality are placed together so that they are able to work
in productively. The hotels in operating under this segment prefers this approach as it carries
better management and division of people. Division of tasks ensures that they are carried out in
the best possible manner by employees. The specialised people belonging to a function are
provided with authority and responsibility which are to be fulfilled by them (de Grosbois, 2012).
The main divisions of an organisational structure are as follows:
Finance: It is most crucial part of the organisation which manages and controls flow of
money. The financial transactions are recorded by this domain.
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