Crisis in Hospitality Industry

Running head: CRISIS IN HOSPITALITY INDUSTRY
Crisis in Hospitality Industry
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1CRISIS IN HOSPITALITY INDUSTRY
Executive Summary
This report discusses about the organizational structure and recent issues faced by
the hospitality industry in recent times. In recent time, it is observed that, the
hospitality industries is facing issues regarding employment of new staffs and also in
retaining the good employees in a specific organization of this industry. For
discussing the employee retention rate in the hospitality industry it can be said that,
the employee satisfaction is one of the key reason of quitting jobs by the
employees. , it is observed that a low work satisfaction rate among the employees is
promoting the low employee retention rate of the company. In this study, it is also
reported that, a good working environment in the hotel industry can also affect the
employee retention rate of an organization as well.

2CRISIS IN HOSPITALITY INDUSTRY
Table of Contents
Introduction..........................................................................................................................................3
Evaluation............................................................................................................................................4
Factors Affecting the Hospitality Industry........................................................................................6
Management of Challenges..............................................................................................................8
Factors changing the Business process..........................................................................................9
Recommendations............................................................................................................................10
Conclusion.........................................................................................................................................10

3CRISIS IN HOSPITALITY INDUSTRY
Introduction
The term organizational structure refers to the activities that are required for
operating the organization in a well manner and such tasks are generally allocation
of task, supervision and coordination in order to achieve the goal of the company.
Hence it can be said that, an organization needs to be innovative, flexible and
efficient so that they can achieve the competitive advantages against other rival
companies in the same industry. In hospitality industry, the organizational structure
refers to the comprehensive plan by which a hotel owner executes the departmental
responsibilities and activities. This such structure helps to exert the functions of the
hotel industry from front desk to human resource department of the industry. From
the interview of the of the manager of the XYZ company it is observed that, the in the
hospitality industry, there is in general five department in the hospitality
organizational structure and they are mainly rooms, food and beverages, marketing,
human resource department and accounting department. The manger also
mentioned in the interview session that the rooms department also take care about
the laundry, room reservation and housekeeping department of their hotel. However,
in another interview with the manager of ABC company, it was noted that in their
hotel, the laundry and house keeping department is functioning differently in their
hotel. The manager of the XYZ hotel, mentioned that, the F&B section of the hotel is
associated with the bar restaurant operation and room services in their hotel
industry. In this fact the manager of the other hotel also agreed that in their
organization, this structure is followed as well. Both of the managers informed that,
the human resource department of the both organization is responsible for handling
of the recruitment, training process of the new employees. In addition to this, the HR
department of the both organization also take care of the matters of old employees.
The marketing department of the ABC hotel look after the total marketing processes
such as selling ad space in hotels, advertisement in the digital media, print media,
traditional banner in the roadsides of the city and the social media marketing process
is also looked after by their marketing team. On the other hand, the XYZ hotel has
different social media marketing team and their doing quite good in this social media
marketing department. According to the managers of the both the industry,
accounting department of both the organization. The managers of both the
organization mentioned that, their organizational structure is very useful in this