The Contemporary Hospitality Industry

This document discusses the different types of businesses within the hospitality industry, the structure and interrelationship of departments in Rosewood hotel, and the direct and indirect impacts of the industry on the UK economy. It also explores the skills requirements for different roles and the current skills shortages in the market. Additionally, it examines the contemporary factors driving skills shortages and high labor turnover in the UK hospitality industry, as well as the impact of skills gaps on hospitality businesses and solutions to address these gaps.

The Contemporary
Hospitality Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1 & LO2......................................................................................................................................1
Different types of businesses within hospitality industry...........................................................1
The way Rosewood hotel can be structure and interrelationship of its different departments...1
Direct and indirect impacts of hospitality industry on UK economy..........................................2
The way global growth, franchising and licensing developments have contributed to the
economic work of hospitality industry........................................................................................2
Different operational roles in Rosewood hotel...........................................................................2
Skills requirements for the different roles and current skills shortages in the market................3
Contemporary factors driving skills shortages and high labour turnover in UK hospitality
industry........................................................................................................................................3
Impact of skills gaps on hospitality businesses in UK and solutions to address the skills gaps.4
CONCLUSION...........................................................................................................................4
LO3 & LO4......................................................................................................................................5
...................................................................................................................................................10
REFERENCES..............................................................................................................................14

INTRODUCTION
It is very important for the business to have a right structure and size as it keeps the
business on right track. Present study is based on the Rosewood hotel London founded in the
year 1979. Report will include current structure, scope and scope of hospitality industry and the
current and anticipated skills that are required in this industry.
LO1 & LO2
Different types of businesses within hospitality industry
The hospitality industry is one of the biggest industries and contribute to the global
economy. There are different types of businesses within hospitality industry and are as
following:-
 Accommodation:- It is a broad sector that includes different types of hotels and
facilities. It provides accommodation facilities to the travelling people and also includes
both luxury and budgeted hotels. Rosewood hotel is also one of the luxury hotel that
provides accommodation facilities to its customers.
 Food and beverage:- It is the largest sector in the hospitality industry and provides
services from preparation of food to supplying and presenting it in front of the
customers(Peters and Kallmuenzer, 2018).
 Travel and tourism:- It includes the services to the people who want to travel from one
place to another with the help of trains, airlines, tour operators etc. and is the fastest
growing sector in UK.
 Entertainment:- It is becoming part of the travelling and organisation is providing most
popular choices of entertainment to its travellers.
The way Rosewood hotel can be structure and interrelationship of its different departments
Rosewood hotel is having a Hierarchical structure where the power is distributed at
different organisational level and also to the working employees. This structure helps the
Rosewood hotel to have a clear chain of command and path that employees can follow seriously
and easily. As the business is operating in more than 27 hotels, this structure helps in managing
diverse tasks that are ranging from human resource and accounting to marketing and purchasing
of the services.
These different departments are having an interrelationship with each other as Human
resource department depends on Finance department in order to get funds so that they can carry
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on their recruitment and selection process to fill the different position at Rosewood. In same
way, Marketing and purchasing department also get dependent on each other as purchasing
department collects different materials in need in order to make production and marketing
department helps in making an effective relationship with the suppliers(Sucher and Cheung,
2015).
Direct and indirect impacts of hospitality industry on UK economy
Hospitality industry is having direct and indirect impact on UK economy as it is the
biggest contributor to UK economy and creates a huge job opportunities. It is the fourth largest
employer and is accounting of about 3.2 million direct jobs and also 2.8 million of indirect job
opportunities(Hospitality industry contributes to UK economy, 2019). It also has grown double
the rate of Labour productivity. It also generates revenue for the local economies as the travellers
and tourist spends money on different types of businesses in hospitality industries in order to
take service(Williams and Horodnic, 2017).
The way global growth, franchising and licensing developments have contributed to the
economic work of hospitality industry
Global growth of the business, franchising and licensing development have contributed
effectively to economic work of hospitality industry as Franchising stimulates economy, creates
jobs and also helps Rosewood hotel to expand its business in national as well as in international
market. With the global growth of the business, Rosewood contribute its economy as it brings
economic stability of its nation and that further leads to increase in employment as well as
increase in income and higher standard of people.
Different operational roles in Rosewood hotel
The different operational roles for which Rosewood hotel require right people and right
resources within the departments and these roles are as following:-
 Executives:- The role of executive is to oversee cleaning professionals and creating a
particular schedule that other staff have to follow and they ensure cleaning is done on
time.
 Front desk services:- Their role is to interact with the guest and welcome them. They
also answer the enquiries of the customers and take the reservation of customers with the
help of emails and with telephonic mode. They also check in and out of the guest with the
help of computerised systems.
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 Housekeeping:- They are responsible for cleanliness and maintenance so that guest can
have desirable room at Rosewood. They also provide the basic needs and stock up the
hotel carts with towels, fresh linens etc(Reid and Sanders, 2019).
 Maintenance:- They ensure that the equipment used at Rosewood are maintained in an
effective manner with smooth functioning in order to reduce risk of interruptions at the
hotel.
Skills requirements for the different roles and current skills shortages in the market
The skills that the different operational role needs are as following:-
 Customer service skills:- The basic skills is to give a satisfactory service to the
customers and having an effective communication with them in order to make an
effective experience for them.
 Teamwork skills:- For the operational role, teamwork skills are essential in order to
have an effective coordination so that satisfactory services can be given to them.
 Problem solving skills:- There are different problems that arise while giving services to
the customers. It is therefore, important for the employees to have creative problem
solving skills so that they can handle the customers effectively.
With the changing technology, skill shortage is increasing in the market and there is
requirement of an effective training and development sessions for the employees working at
Rosewood, so that they can enhance these skills.
Contemporary factors driving skills shortages and high labour turnover in UK hospitality
industry
Skill shortage generally damage economy and it is very important for the hospitality
industries to work effectively in order to meet the skills of the employees that are essential for
their business as it leads to economic success. With the rise in technologies, Organisations are
facing skill shortage and that results in many vacant positions. If excess demand in macro
economy is there, it generates skill shortage and that also leads to high turnover in UK
hospitality industry(McGinley, Hanks and Line, 2017).
Impact of skills gaps on hospitality businesses in UK and solutions to address the skills gaps
There is a great impact of skills gaps on hospitality businesses in UK as it leads to high
turnover rates of the employees. It is becoming a biggest challenge for Rosewood hotel also as it
impact there growth plan and is loosing talent all across the business. These gaps have impacted
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directly and indirectly to millions of jobs in hospitality sector. This also drops the morale of the
business and the customers may judge the whole organisation for these gaps.
In order to overcome the same, Rosewood and other businesses are required to address
the team cultural issues and have to analysed the reasons of undesirable reputation in market.
Businesses are required to prioritize these areas and work on them. This helps in attracting
potential and skilled employees who can retain for long period in the firm.
CONCLUSION
From the above study it is been concluded that Rosewood is having Hierarchical structure
and this helps the business to have an effective operational activities. Report also concluded the
working employees at Rosewood are required to have effective skills in order to make the
customers satisfied.
LO3 & LO4
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Impact of external factors on Rosewood hotel London
The different external factors that impacts Rosewood London are as following:-
 Political factors: - As Rosewood hotel is operating in international market, business may
face issues with respect to government policies of different countries and also their
different tax policies.
 Economic factors: - Factors like interest rate and exchange rates may affect Rosewood
as it operates in international market.
 Social factors: - As customers are becoming health conscious and they are switching
towards the sustainability, this may impact the Rosewood as hotel is required to provide
the same.
 Technological factors:- With the changing trends, change in technologies are also
increasing and impacting the business. Rosewood hotel is required to provide digital
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technology to the customers and have to make their experience more effective with
respect to the use of different technologies like electronic keys to open rooms, different
entertainment sources etc.
 Legal factors: - There are different legal factors like health and safety of employees as
well as customers, consumer rights etc. that impact Rosewood. Business is require
providing hygienic food and providing proper equipment’s to the employees for their
safety at work.
 Environmental factors: - There are different environmental factors like carbon foot
print, sustainability etc. Business is required to have recycling methods and use of
equipment’s that are eco-friendly in nature.
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SWOT analysis of Rosewood Hotel London:-
Strength:-
 Rosewood is having global reputation is market
 Having premium pricing strategies
 Loyal customers
Weaknesses:-
 Due to high price middle class customers are not able to afford the same
 Brand positioning limits the markets (Phadermrod, Crowder and Wills, 2019)
Opportunities:-
 Brand name is saturated in minds of the customers and can help in attracting the
customers if effective strategies are implemented
Threats:-
 Losing customers base after corporate branding changes
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Factors impacting supply and demand of products and services:-
There are different factors that are impacting the supply and demand of products and
services. These factors are as following:-
 Price frustration: - It impacts the supply and demand as it rises the price of the product
and the adverse customers no longer feels to purchase the same. This leads in cuts in
production. If the price is lowered, it increases the demand of the customers and leads to
great value of product (Williams and Horodnic, 2017).
 Income and credit: - As the income level changes, it impacts the supply and demand. If
the income is high, it raises the demand and if the prices are low, it makes the demand
lower in market.
 Availability of alternatives: - With the rise in competition, availability of the
competitors rises and impacts the buying behaviour of the customers. This also leads to
price war and that leads to lower price of products. It further leads to decrease in demand
due to cut in supply.
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 Trends:- The rise and fall of the demand also is based on the trends in market. Hotels
offering digital or some advance technology will be given more preference than the one
not going with resent trends.
Critical evaluation of implications of current and potential trends that affects Rosewood
hotel:-
There are different trends that affects Rosewood hotel and few of them are as following:-
 Healthy and organic food and drinks:- Rosewood hotel is required to provide healthy
food options to the customers that includes dairy free, low fat, vegetarian food options.
However, it is tough for the business to analyse the taste of each customers and provide
the food service(Williams and Horodnic, 2017).
 Sustainability:- Rosewood hotel is required to adopt sustainability at the workplace by
reducing the wastage and promoting eco-friendly activities at the business.
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 Smart Hotels:- Rosewood is required to make use of internet-enabled devices and other
artificial intelligence in order to make the hotel smart and attractive for the customers.
However, it raises the cost of the business.
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REFERENCES
Books and Journals
McGinley, S.P., Hanks, L. and Line, N.D., 2017. Constraints to attracting new hotel workers: A
study on industrial recruitment. International Journal of Hospitality Management. 60.
pp.114-122.
Pan, W., Chen, L. and Zhan, W., 2018. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Peters, M. and Kallmuenzer, A., 2018Peters, M. and Kallmuenzer, A., 2018. Entrepreneurial
orientation in family firms: The case of the hospitality industry. Current Issues in Tourism.
21(1). pp.21-40.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Reid, R.D. and Sanders, N.R., 2019. Operations management: an integrated approach. John
Wiley & Sons.
Sucher, W. and Cheung, C., 2015. The relationship between hotel employees’ cross-cultural
competency and team performance in multi-national hotel companies. International
journal of hospitality management. 49. pp.93-104.
Williams, C.C. and Horodnic, I.A., 2017. Regulating the sharing economy to prevent the growth
of the informal sector in the hospitality industry. International Journal of Contemporary
Hospitality Management. 29(9). pp.2261-2278.
Online
Hospitality industry contributes to UK economy. 2019. [Online] Available Through
<http://www.ibs-systems.co.uk/morning-briefing-from-propel/hospitality-industry-biggest-
contributor-to-uk-economy-since-recession/>
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