Analysis of Hospitality Industry Trends

The provided assignment is an analysis of the hospitality industry, focusing on current trends, importance, and career factor importance. It includes a literature review using bibliometric methods, a discussion on Web Summit's impact on the industry, and case studies on medical tourism destinations. The document also highlights top upcoming trends in the hospitality industry.

Hospitality Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
P1 Different sectors, its product and services of hospitality industry ........................................1
P2 Operational and functional departments of hospitality organization ....................................2
TASK B...........................................................................................................................................3
P3 Contribution of hospitality industry to local, national and global economies.......................3
TASK C...........................................................................................................................................5
P5 Requirement of skills for 4 different employment roles within hospitality industry ............5
TASK D...........................................................................................................................................6
P6 PESTLE analysis of hospitality industry ..............................................................................6
P7 SWOT analysis of Hilton hotel .............................................................................................6
P8 Current and potential trends in the hospitality industry ........................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Hospitality means the relations between guest and host wherein the host receives the
guest with goodwill involving reception and entertainment of visitors or guest. Therefore, it is
necessary to manage overall hospitality business. Hospitality management is the survey of
hospitality industry. It means to scope of businesses and professional practices connected with
the management of hotels, resorts and other lodging (Brown, Arendt and Bosselman, 2014). This
study is based on the Hilton hotel and resorts. It is international and flagship brand of full
services hotels and resorts in the worldwide. This report will state overview and explanation of
various sectors of hospitality, its products and services. It will explain operational and functional
departments within large hospitality company. It will discuss the contribution of hospitality
industry to local, national and international economies. Furthermore, report will examine skills
required for four different roles within the hospitality industry. It will produce PESTLE analysis
of industry and SWOT analysis of specific organization.
TASK A
P1 Different sectors, its product and services of hospitality industry
Hospitality industry is the active business with countless categories, but customer
services is unifying element shared by all segments of the industry. Traveller's needs are served
in the holistic manner by different sectors of the hospitality business. In order to that, there are
many sectors of hospitality that are following:
Hotels: A hotel is beginning that caters paid lodging on short term basis. Facilities gives
range from modest quality mattress in small room to large suites with bigger, higher quality
beds, dresser and so on (García-Lillo, Úbeda-García and Marco-Lajara, 2016). Large hotel
provides extra facilities such as swimming pool, conferences, events, spa, tennis or basketball
courts and social function services. Hotels rooms are numbered named to allow guests to identify
their room.
Travel and Tourism: Travel and tourism is the huge sector of hospitality sector with
many key players across the world. Most of them involves trains, airlines, cruise ships and so on.
Overall, travel and tourism division are moving people from one destination to another. It is
large domain which demands invention, policy and originality at each stage. Formal and
informal travelling involves in this segment. People travel across of world for business,
entertainment, holiday, educations and many other things.
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Restaurant: A restaurant is business which ready and caters meals and beverages to
consumers in exchange of money. Foods are generally served and eaten on the premises but
many restaurants also provides take out and food delivery services (Law, Buhalis and
Cobanoglu, 2014). Restaurants differ greatly in presentation and offering that involving broad of
cuisines and services models ranging from reasonable and fast food restaurants. The high scope
restaurants cater alcoholic drinks such as beer and wine.
Resorts: A resort is self-contained commercial establishment that tries to cater most of
holiday's wants such as food, beverages, sports and entertainment on the places. The term resort
is used for hotel property that offers collection of facilities which involves entertainment and
recreational activities. It means town which people visit for holidays and days out that generally
contains hotels at such holiday markets stay.
Theme park: It is type of amusement park that characteristic different attractions such as
rides, games and other events for entertainments objectives (Singal, 2014). The structure of
theme park is the attractions around central theme frequently containing numerous fields with
diverse themes. Theme parks are stationary and built for long lasting operations such as
temporary, mobiles funfairs and shows.
P2 Operational and functional departments of hospitality organization
There are different operational and functional departments in hotel organization.
Operational departments involve sales, human resource, finance, purchase and store. On other
side, functional divisions include housekeeping, food and beverages, kitchen and front office in
the Hilton.
Operational Departments:
Sales and Marketing: The sales and marketing department who are marketing of
product and services of Hilton. This division is responsible for generating new business for the
hotel (Law, Buhalis and Cobanoglu, 2014). They can sales of rooms, functions, conventions even
restaurant or bar. It also manages the advertising, sales promotions and publicity of the hotel.
They often take role of public relation.
Human resource and personnel: The personnel department is accountable for
recruiting, training and development of workers in the Hilton. This division is liable for the
welfare, collective bargaining and industrial relation.
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Finance and Account: The finance division is liable for monitoring of all financial
activities such as cash receipts, processing payroll and preparation of inside reports of the Hilton.
They also responsible for preparation financial statements because of fiscal data are essential for
the hotel business.
Purchase and Store: The purchase and store division buy raw materials to support the
process of services in the hotel sector (García-Lillo, Úbeda-García and Marco-Lajara, 2016).
This department plays an essential role while buying all wants of the Hilton. The job of this
division is stitching kit to large purchase to facilitate the process.
Functional Department:
Housekeeping Department: This division is liable for administration of guest room,
cleanliness of entirely public fields in Hilton. Housekeeping departments are accountable for
collecting of linens from different outlets and coordinating with other division of the hotel.
Food and Beverage Service Department: These departments are important services
orientation and critical division of Hilton. They are responsible for providing coffee shops, bars,
banqueting and room services. Food and Beverage division put forward the high standard and
quality of meals and beverages.
Food production and Kitchen Department: The kitchen is fine planned closed area
with skilled chefs and all essential machines, tools and apparatuses responsible for making food
stuffs as per guest orders tracked by standards recipes (Brown, Arendt and Bosselman, 2014).
Front Office Department: Front office is the field where guests arrive and first meeting
staff at the place of hotel. Front office worker deal with question of visitor and put them in
contact with relevant person at the Hilton. They update information regarding VIP in-house,
room reports, billing in which the guest stay.
TASK B
P3 Contribution of hospitality industry to local, national and global economies
Hospitality industry is one of the biggest and fastest growing industries in the worldwide.
It creates contribution to the economies of various countries of the world in different modes. This
industry contributes in different economies such as local, national and international in various
ways.
National Economy:
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Makes Employment: The largest contribution is the making host of new jobs that the
industry creates to the economy of the nation. Direct jobs possibilities are available as tour guide,
planners, consultants, in hotels, restaurant and resorts. With the growth of hospitality industry, so
do these jobs. Jobs are also made in many related industries like cruise, even management, theme
park, airline and so on.
Generate Income: Hospitality industry generates income in different of ways. The
national authority earns revenue from this industry. Income is also created through utilise of
many facilities such as hotels, restaurants, sites and another places if tourist interest. These
services are improved and maintained to attract more travellers.
International Economy:
Foreign Exchange Earnings: It is the most essential contribution of hospitality industry
that can make to economy of nation. All travelling expenses are changed by international
travellers is the source of foreign exchange earnings (Significance of Hospitality and Tourism in
a Country’s Economy, 2016). It mandatory for travellers from abroad to carry certain amount of
international currency for the whole length of their stay. Therefore, global travellers are the best
means of transferring in foreign currency to the host country.
Foreign Direct Investment (FDI): It is strong by international authority of nation
increase investment in the sector as hospitality in the country. FDI is found more in economies
that are open and have excellent growth prospects. This sector is involved in the top most 15
sectors that brings in the maximum foreign direct investment.
Local Economy:
Encourage Other Localized Industries: Indirect jobs are made for example in the food
production sector, retail industry etc. Due to the tourists visiting various destinations, so that, it
has been highly growth of hospitality sector. Restaurants, trade and repair services support third
as sub division of the service sector.
Preserves Traditional Industries: It is the another advantage of hospitality industry that
discuss traditional industries and handicrafts. Travellers take high interest in the local goods of
places they visit all over the world. So that, people create all efforts to control any attractive
industry and form of art they diversify it.
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TASK C
P5 Requirement of skills for 4 different employment roles within hospitality industry
Skills of Hotel General Manager:
A Hotel General Manager makes sure that hotel is running smoothly. This includes
communicating with guests, handling staff as well as finance of property. Hotel General
Manager require to have strong business, management, interpersonal skills. Hotel Administrator
have degree in hotel management.
Interpersonal Skills: It involves motivation, team work, active listening and
communication. Manager must have team work skill that includes number of abilities such as
collaboration, team building and group facilitating (Domingues and Nunes, 2018).They must
have communication skills that involves different abilities such as non-verbal, public speaking
and verbal interaction.
Business Skills: It involves communication, finance, delegation and soft skills. Hotel
General Manager must have delegation skills which includes number of abilities such as decision
making, time management, problem solving and so on.
Shortage:
Currently, Hotel General Manager is unable to solve complex problem and conflict
between the team members. Therefore, they must have improved this skill.
Skills of Event Planner:
An Event Planner works to handle event then ensures its runs smoothly. They must have
communication skills, problem solving, time management and so on. Many of hotels have
conferences rooms that they rent out for different events, ranging meetings to weddings.
Time Management Skill: An Event Manager have ability to carry out number of
activities at the same time by managing this skill to plan of events (Bertozzi, Ali and Gul, 2016).
Communication Skills: An Event Manager must have ability to verbal communicating
with team members for successful events to attract the guests.
Shortage:
An Event Planner is unable to manage time for different events at the same time.
However, they must have improved this skill for effective planning of events.
Skills of Executive Chef:
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An Executive Chef supervises food operations in restaurants, hotels and other venues that
serve foods. In order to that, they must have creativity, multitasking, fast-paced decision making
and so on.
Creativity Skill: It is necessary for working food and hospitality industry. An Executive
Chef must be open to integrating new food products into menu and improving older recipes.
Fast-Paced Decision Making: An Executive Chef must have able to make decisions
faster and appropriate. They have to create number of judgement at once, because kitchen is the
fast-paced atmosphere.
Shortage:
An Executive Chef is unable to creative perpetration of new food recipes so that they
must have improved creative ability and thinking for making effective food recipes.
Skills of Front-of-the-House Manager:
A front of house manager is to supervise and co-ordinate the whole front desk team. They
ensure receives warm welcome of guests and that facilities runs smoothly. Front of house
Manager must have skills such as team work, leadership, customer services skills etc.
Team work Skill: Manager know to manage and work in team. They also require
intervening in any conflicts that arise and resolve range of difficulties.
Shortage:
The front of house manager is unable to interact and serve to people, so that they must
have improves their customer services skills.
TASK D
P6 PESTLE analysis of hospitality industry
Political Factors:
The changing government programmes or terrorism that direct impact on hospitality
industry in the worldwide. Political stability is always beneficial for this industry (Phillips and
Moutinho, 2014). Brexit was important political event that had marked impact on tourism and
hospitality sector. Brexit and terrorism are pain revenue. A single terrorist event effects deeply in
field for protracted period.
Economic Factors:
Economic factors have remained major factor behind the high demand in the hospitality
industry. The labour market has continued to grow powerful and with spending by consumers.
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The positive signs are arising disposable personal and average hourly income. The condition of
demand is healthy and, so that hotel and airline brands draw the benefits from the current
situation. The purchasing power of tourists affects on condition of economy.
Social Factors:
Social trends are shaped hospitality industry. Consumer preferences has taken shift in the
current year. Consumer needs, culture and traditions are important factors that directly effects on
overall hospitality industry (Wong, Velasamy and Arshad, 2014). Airline and hotel brands stand
to gain if consumer sentiment is favourable.
Technological Factors:
Technology has expedited communication and transfer of info bridging the gap between
many portions of the world. Hotel and airline brands in hospitality industry utilising information
technology to cater their consumers. Social media and mobile technology affects on overall
hospitality industry.
Legal Factors:
The labour and public security are essential concern which is complex for every
hospitality organisation. It is crucial that they are familiar with all the localized regulations for
brands operating in many countries (Yu, Byun and Lee, 2014). Staff training has also become
more essential to forbid any legal trouble. The legal pressures and challenges such as labour
laws, consumer rights etc. affects on overall hospitality businesses.
Environmental Factors:
Environmental concerns are essential for hotels, restaurant and travel brands in
hospitality industry. Cities are greener and cleaner receive travellers in big numbers. Seasonal
demand affects both hotels and airlines brands in the hospitality sector. The impact of weather
conditions affects on airline industry in hospitality sector.
P7 SWOT analysis of Hilton hotel
Strength:
The strength of Hilton is high brand identification and good employee retention. Hotels
has strong execution in new markets and powerful distribution network (Bertozzi, Ali and Gul,
2016).Hilton has able to accomplish large level of customer satisfaction between recent
consumers and effective brand equity the possible consumers. Firm is financing large resources
in training and development of their workers that outcome is in manpower. Hotel has adopted
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technical inventions to develop consumer experience and continual update of process of
business.
Weakness:
The weakness of Hilton hotel is limited market share inspite of good brand recall. Due to
government policies and criteria, operations are effected internationally. There are lack of
flexibility because of its large size. The financial planning is not done appropriately and
effectively. Company has not being able to handle challenges of new entrants in the division.
Due to high attrition rate in man power, because Hilton has spent large amount of money on
training and development as compared to its rivals.
Opportunities:
Hilton creates chances to increase high potential in emerging markets and innovation in
customer services. Firm will adopt digitalization and utilise of technology to determine new
trends in the consumer behaviour. This create possibility to generate revenue and diversification
into new good categories (Phillips and Moutinho, 2014). Due to lower inflation rate, firm create
opportunities for growth and development of business in hospitality industry. Hilton spend large
amount of money on online platforms that help to increase sales and satisfaction with customer
needs. If the company invest in new technologies and new product divisions through stable free
cash flows.
Threats:
The competition on price point, economic and political conflicts in most nations are
threats of Hilton. It is unprotected to currency fluctuations, firm is operating in numerous
nations. The demand of largely profitable goods is seasonal in nature. Low quality products is
also threat specially in emerging and low income markets. New environmental regulations under
Paris agreement can be threat to particular existence product categories. There are mainly three
competitors such as Marriott, Starwood, Accor that effects profits of Hilton. Different Laws
regarding product standards and fluctuations in the marketplace that are threats to firm.
P8 Current and potential trends in the hospitality industry
Current Trends:
Serving to millennials: Organizations require determining their approaches based on this
demographic groups personality traits and habits of people who are travelling a lot. Hotels want
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to pleas them with easy check-in and foodie dining experience at reasonable prices. Satisfied
time period swill actively promote their business on social media platforms.
Increased importance on health and safety: Hotels are responsible to well-equipped
fitness centres, pools, and spas, guests are taking charge of their health in current world. The
hospitality industry adapt trends that involving lighting on energizes, air purification, yoga
spaces and so on (Wong, Velasamy and Arshad, 2014).
Real time damage control: Consumer can easily complain on Facebook, Twitter,
TripAdvisior, if they are dissatisfied with hotel services. Engaging with consumers and
responding to their needs by these public forums assists maintain optimistic relationship with
guest and drive upcoming bookings.
Potential Trends:
Presence of AI: The hospitality industry will follow artificial intelligence in future days.
Many of organizations within hospitality industry have already begun to apply some friendly
robots to help out with housekeeping and other activities (TOP 5 UPCOMING TRENDS IN THE
HOSPITALITY INDUSTRY, 2018). They do not need a lot of face-to-face communication.
Guest Data: One of the decisive factors that are accumulating and processing guests
information. The correct utilization of guest information is imperative to give satisfying and
optimal their experience. Hospitality organization are founds new applications for guest data in
each and every day.
Tech Explosion: Hospitality organization require that their offering are up-to-date and
user friendly, because majority of guest are utilization different apps and mobile websites for
purchasing hospitality services.
CONCLUSION
This report has summarised that hotels, tourism, theme parks, resorts and restaurants are
operating in hospitality industry. It can be concluded that operational departments that involves
sales, purchase, human resource and finance within hospitality company. It also discussed that
functional departments such as housekeeping, front office, food production, food and beverage
services in the Hilton hotel and resorts. Furthermore, it has produced that PESTLE analysis has
impacted on hotels and tourism brands mostly that directly effects on customer services. It has
evaluated that threats and weaknesses are directly effected on decision making of Hilton.
Moreover, report has completed that examined that potential trends that involves presence of AI,
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guest data and tech explosion that increase future growth of overall industry as well as current
trends which includes serving to millennials, increased importance on health and safety as well
as real time damage control which improve current development of overall industry.
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REFERENCES
Books and Journals
Bertozzi, F., Ali, C. M. and Gul, F. A., 2016. Resource Based View of an Organization and
PESTEL Analytical Tool; An Analysis of Hotel Corallo, Rimini. EPH-International
Journal of Science And Engineering (ISSN: 2454-2016). 2(11). pp.57-71.
Brown, E. A., Arendt, S. W. and Bosselman, R. H., 2014. Hospitality management graduates’
perceptions of career factor importance and career factor experience. International
Journal of Hospitality Management. 37. pp.58-67.
Domingues, J. and Nunes, M. M. M., 2018. A first effort to understand the impact of Web
Summit in Lisbon 2016-2017 on the hospitality industry and Dand development of
startups(Doctoral dissertation).
García-Lillo, F., Úbeda-García, M. and Marco-Lajara, B., 2016. The intellectual structure of
research in hospitality management: A literature review using bibliometric methods of
the journal International Journal of Hospitality Management. International Journal of
Hospitality Management. 52. pp.121-130.
Law, R., Buhalis, D. and Cobanoglu, C., 2014. Progress on information and communication
technologies in hospitality and tourism. International Journal of Contemporary
Hospitality Management. 26(5). pp.727-750.
Phillips, P. and Moutinho, L., 2014. Critical review of strategic planning research in hospitality
and tourism. Annals of Tourism Research. 48. pp.96-120.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
Singal, M., 2014. The business case for diversity management in the hospitality
industry. International Journal of Hospitality Management. 40. pp.10-19.
Wong, K. M., Velasamy, P. and Arshad, T. N. T., 2014. Medical tourism destination SWOT
analysis: A case study of Malaysia, Thailand, Singapore and India. In SHS Web of
Conferences(Vol. 12, p. 01037). EDP Sciences.
Yu, Y., Byun, W. H. and Lee, T.J., 2014. Critical issues of globalisation in the international hotel
industry. Current Issues in Tourism. 17(2). pp.114-118.
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Online
Significance of Hospitality and Tourism in a Country’s Economy. 2016. [ONLINE]. Available
through. : <https://inurture.co.in/blog/significance-of-hospitality-and-tourism-in-a-
countrys-economy/>.
TOP 5 UPCOMING TRENDS IN THE HOSPITALITY INDUSTRY. 2018. [ONLINE]. Available
through. : <https://repup.co/top-5-upcoming-trends-in-the-hospitality-industry/>.
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