The Contemporary Hospitality Industry

This report explores the different types of businesses within the hospitality industry, their products and services, operational departments, and the contribution of the industry to local, national, and international economies. It also discusses the influence of franchising and licensing on global development and analyzes the skills required for various roles within the industry. Additionally, it reviews the skills gaps and provides solutions to address them.

The Contemporary Hospitality
Industry

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
LO1 AND LO2................................................................................................................................1
Different types of business within hospitality industry and the product and services offered by
them.............................................................................................................................................1
Range of operational and functional departments.......................................................................2
Demonstrate the contribution of hospitality industry to local, national and international
economies....................................................................................................................................3
Discuss how the franchising and licensing has influenced the global development...................4
Analyse how licensing and Franchising has contribute to the economic worth of hospitality
industry........................................................................................................................................5
Discuss the range of different operational roles within hospitality industry...............................5
Examine the skills for required roles within the hospitality industry..........................................6
Review the skills gaps within the hospitality industry................................................................6
Impact of skills gaps and also provide solution in regard to this.................................................6
LO3 and LO4 Covered in PPT........................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Hospitality management is a broader term that includes large varieties of services such as
accommodation, travel and tourism, entertainment industry and many more as it is one of the
fastest growing sectors that generates greater revenue and profitability in a marketplace (Gupta,
Gupta and Gupta, 2019). This report is based on Intercontinental Hotel Group which is one of the
renowned brands in UK. This deal with wide range of products or services such as
accommodation, lodging, restaurant that aims to provide best quality of merchandise among their
customers. This report comprises of different kinds of businesses within hospitality sector and
also it includes roles of operational and functional departments in a workplace. This also
included various current and anticipated skills that are required in a hospitality industry. This
report also covers various internal and external factors that affect the hospitality industry. At last,
it includes various current and potential trends that assist the firm to adapt these so as to gain
competitive edge over a marketplace.
LO1 AND LO2
Different types of business within hospitality industry and the product and services offered by
them
Hospitality industry is one of the biggest sectors that provide employment opportunities
to large number of people around the world as it deals with range of services such as event
planner, accommodation and a lot more (Li and et.al., 2016). It has contributed immensely so as
to produce a desired level of output and also it provides major contribution in GDP. This ensure
economic of the country and also aims to attract customers thorough its different types of
services especially the foreigners. This in one of the rapid growing industry which generates
maximum income in the country. In relation to this, the different types of businesses are
discussed below:
Food and Beverages: This is one of the crucial sectors in a hospitality industry that aims
to provide excellent food and fast delivery so as to enhance the great experience of the clients.
They use best quality and maintain proper health and hygiene so as to generate maximum
satisfaction of the guest which in turn increase the sales and profitability.
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Accommodation: This provide facility of lodging and provide a great comfort to the
customers which covers that this industry provides proper sleeping facilities and other recreation
amenities so that proper relaxation is provided to the customers.
Resorts: This is most popular types of business in hospitality industry as it involve
various types of services such as gym, bars and café, indoor and outdoor games, spas, club and
many more that provide a memorable experience to their customers (Niu, Song and Xiao, 2017).
This create a joyful experience which generates additional income within the hospitality
industry.
Restaurant: This facility is collaborated with hospitality industry that aims to provide
various types of foods such as Mexican, Chinese, Italian and many more as well as with
excellent quality so as to gain large access of customers across the globe.
There are several types of products or services that are offered within the hospitality
industry such as DND services, parking facilities, laundry and so on which are demanded by the
guest. Some of them are prescribed below:
Pick up and drop facility: This amenity is provided on the request of guest as a schedule
time is fixed between them and accordingly this is provided so as to get an ease of convenience
among the group of customers.
Do Not Disturb: This is rendered on the request of client in which a board of DND is
fixed at the outer side of room so that no one could disturb them.
Laundry facilities: Sometimes, the client want that their clothes to be washed so this
facility is also provided so as to provide greater comfort to them.
In addition to this, there are lot more facilities which are provided within hospitality
industry such as Wi-Fi, Night clubs and many more so as to provide greater comfort to their
guest. These facilities attract the customers and thus increase the productivity within the confines
of hospitality industry.
Range of operational departments
In an organisation, there are different department which work together for the
accomplishment of task in a short span of time. Each has different roles and responsibilities
which could ensure future success within the hospitality industry (Boella and Goss-Turner,
2019). In the context of Intercontinental Hotel Group, the various roles of operational and
functional departments are presented as follows:
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Front office department: These department has direct contact with customers as they
render information regarding the booking facilities and other details so as to avoids confusion
among the guest. The front office of Intercontinental Hotel solves queries and issues of their
clients in an effective manner and also, they welcome the guest and also attend phone calls so
that they could enhance greater satisfaction of customer.
Household department: This department emphasise on maintaining cleanliness and
proper hygiene. The hosing department of Intercontinental Hotel provide proper cleanliness in
their workplace that every guest or visitor want in a respective place.
Range of functional departments and Interrelation between them
Finance and marketing: In context of Intercontinental Hotel, finance is considered as the
blood of business while the marketing is backbone of a firm in which the former involve
preparation of budgets, cash flows and financial statements and render information regarding the
financial status to the latter so that it could make an appropriate planning while incurring
investment on advertisement and marketing campaigns (Liang and et.al., 2017). This ensure
future growth and success within hospitality industry.
Purchasing department and food and beverage department: With reference to
Intercontinental Hotel, the purchasing department acquire raw materials from suppliers and
ensure proper delivery of goods at the right time in a right place while food and beverage
department ensure maintaining proper food and beverages by using excellent quality and best
services to their customers which in turn boost the sales and increase the profitability in a
marketplace.
Human resource and sales department: The human resource department of
Intercontinental Hotel implement proper recruitment and selection procedure and also, they
provide specialised training to their employees so as to increase their skills and knowledge base
which boost the productivity and improve the level of customer satisfaction while the sales
department aids the former in searching a potential candidate for filling the required vacant
position which ensure proper systematic working procedure in an organisation.
Demonstrate the contribution of hospitality industry to local, national and international
economies
 Local: Proper planning and coordination by the manager of concerned firm help in
facilitating smooth operations of a business and also mutual relations with suppliers help
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in getting best quality of products and also it creates strong distribution of network which
develop a positive brand image locally. Moreover, the manager of respective firm enjoys
greater economy of scale which provide easy access of capital from clients as its
attractive services grab the attention of guest and cultivate a best experience of them.
This allow the firm to contribute their operation at local level and boost the sales and
profitability within the confines of hospitality industry.
 National: Hospitality industry is growing every year that aims to meet the requirements
and expectation of customers across the globe. This contribute 10% of GDP in the
economy that provide immense level of growth within a hospitality industry and also it
provide wide range of services such as accommodation, lodging, night clubs, bars and so
on that create an lasting impression in the minds of guests which in turn boost the sales
and profitability in an organisation (Boella and Goss-Turner, 2019).
 International: The manager of Intercontinental Hotel is planning to expand its operation
in Asia so as to gain maximum exposure across the worldwide. This ensure maximum
satisfaction level of customer and increase the sales and profitability within the confines
of hospitality industry. The concerned firm provide various amenities and has strong
presence at a global level which assist the firm to maximise the sales and revenue in a
market. there are several hotels such as Mariotte, Blu Radisson, Hilton and many more
that are operating at international level and also it creates an enormous job opportunity in
different fields such as wedding planner, household department, front office department
and many more. Also, it helps in economic development of the country as it contributes
to approximately 15% of employment at global level and also play a major role in
contribution of national income of the country.
Discuss how the franchising and licensing has influenced the global development
The franchising and licensing play a major role in a hospitality industry as it aids in
expansion, diversification and modernisation of a business at a national and global level (Gibson,
and Parkman, 2018). Under franchising, this assist the firm to use a brand name of parent
company so that they could provide services and sell its products within the confines of
hospitality industry. Furthermore, this provide immense level of growth of a business to a next
level and assist the firm to gain a maximum exposure across the globe. Also, licensing could
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provide assistance to a firm to enjoy greater economy of scale and boost the productivity in a
workplace.
Analyse how licensing and Franchising has contribute to the economic worth of hospitality
industry
Franchising and licensing play a crucial role within a hospitality industry as it helps in
creating a proper balance and economic development of the country (Bratton and Watson, 2018).
This also provide major contribution in national income of the country which provide prosperity
to a nation and ensure a proper success in future. The expansion of business at a global level help
in maximising the revenue and increases the profitability within the confines of hospitality
industry. Also, it provides various facilities like accommodation, lodging and many more and
also it creates employment opportunities which boost the economy. The franchising assists the
firm to ensure maximum exposure and contribute a greater in an economy which enhance the
productivity and thus facilitates smooth operations of a business at a global level.
Discuss the range of different operational roles within hospitality industry
Operational department is significant in an organisation as it ensures proper coordination
and cooperation in a workplace and thus facilitate smooth flow of activities (Yasmin, Sarkar and
Sohail, 2016). The manager of Intercontinental Hotel has wide range of operational departments
which are given beneath:
Front office department: The role of front office is a wide in hospitality industry as it
deals with several operations and are in direct contact with customers which provide an immense
level of a growth of a firm. They emphasise to solve the queries and provide an effective solution
to their customers in an effective and efficient manner which help in accomplishment of a task in
a very short span of time.
Back office department: The manager of Intercontinental Hotel has back office
department who emphasise to monitor and control the activities of subordinates which improves
the overall efficiency and productivity in a workplace and thus brings proper systematic working
procedure in an organisation.
Food and beverages department: This department is very useful as it focuses on
maintaining proper quality of food and also ensure to have quality specifications so as to
generate maximum satisfaction of guest across the globe. The manager of concerned firm takes
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care of quality and proper hygiene so as to maintain proper cleanliness and thus bring efficiency
in a workplace.
Examine the skills for required roles within the hospitality industry
Skills are very essential that help in increasing the knowledge as it is mentioned below in
respect of hospitality industry are as follows:
Customer handling skills: This is very essential as employees must possess such skills
and should interact with customers in a polite manner and also render an effective solution to
them which create a good impression in front of guest. Also, the employees must have good
communication skills so that they could understand the requirements of customers and achieve
the maximum satisfaction.
Problem solving skills: This is very common skills among the employers and employees
and also, they should know the perfect way to cope up with pressures as this bring positive
atmosphere within hospitality industry and thus promotes an enormous growth of the company.
Developing team working skills: The leader should provide proper guidance and also
assign he work among the subordinates in accordance to their specialisation so that they could
work with zeal and thus produce a desired level of output. The leader invites the ideas and
opinions of subordinates which promote a great sense of team spirit in a hospitality industry.
Current skills shortage
Render effective training: The manager of a respective firm would emphasise on
rendering effective training among their existing staff so that gap could be filled as this enhance
their knowledge level. Lack of training would create hesitation among them and they would not
perform their level best and does not accept challenging roles.
Adaptability: The manager of a concerned firm would focus on rendering an effective
solution as employees hesitate in accepting changes which hamper their overall performance. It
is necessary that senior authority must pay close attention to their subordinates by considering
their ideas as their skills must be utilised in a best possible manner.
Lack of clarity: Sometimes, there is chances that there is lack of communication among
the manager and staff which give arise to misunderstandings and conflict among them.
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Review the skills gaps within the hospitality industry
Skills gap affect the working operation in a hospitality industry which hamper the growth
of a firm in an effective and efficient manner (Irawanto, 2017). The lack of communication skills
and lack of proper strategy and its execution would create a lot of adversities affect the working
procedure of a company. In addition to this, the employees are not ready to accept the changes
and they are not trained properly which lead to decline in the growth of an organisation. Due to
skills gaps in a hospitality industry, the employees would not interact properly with customers
which affect the sales, profitability ration and productivity within hospitality industry. As a
result, it led to arrival of confusion and misunderstandings among the group of individuals across
the globe.
Impact of skills gaps and also provide solution in regard to this
The skills gaps create a negative impact on the business as there is decline in sales and
profitability within hospitality industry. The manager should render a specialised training among
their subordinates so as to make them capable of handling sophisticated machines which improve
the productivity and efficiency in a workplace. Also, the senior authority should develop
excellent communication skills and must assign the work appropriately among the staff so as to
avoid confusion and misunderstandings among them which in turn enhance the productivity
within hospitality industry.
LO3 and LO4 Covered in PPT
CONCLUSION
From the above information, it can be summarised that the business environment in
which company carry out its operations is regarded as dynamic so the manager adapts the
changes quickly so as to facilitate smooth flow of activities in a workplace. The nature, size and
scope of hospitality business as well as it requires several skills such as problem-solving skills
and customer handling skills which help in attainment of goal in an efficient manner. The
internal and external aspects such as SWOT analysis and PESTLE analysis is presented so as to
assess the availability of resources and provide a way to achieve competitive advantage within
hospitality sector.
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