Hospitality and Venue Management Report - Desklib

This report on Hospitality industry covers the complex structure of the industry, opportunities for internationalisation, managing issues, human resource management and operations. It also includes subsets of the industry, challenges, and future trends. Subject: Hospitality and Venue Management, Course Code: NA, Course Name: NA, College/University: NA.

Running Head: Hospitality and Venue management
Hospitality and Venue management
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HOSPITALITY AND VENUE MANAGEMENT 1
Table of Contents
Executive summary...............................................................................................................................2
Introduction...........................................................................................................................................3
Overview of Hospitality Industry..........................................................................................................4
Lodging-accommodation...............................................................................................................4
Food and beverage.........................................................................................................................4
Tour and travel..............................................................................................................................4
Entertainment industry...................................................................................................................4
Timeshare......................................................................................................................................4
Opportunities for internationalisation....................................................................................................5
Managing issues within the hospitality..................................................................................................6
Human resource management and operations........................................................................................7
CSR and sustainable issues....................................................................................................................8
Sustainable issues..................................................................................................................................8
Go-Green.......................................................................................................................................8
Labour issue..................................................................................................................................9
Increased competition....................................................................................................................9
Data mining and technology..........................................................................................................9
Future trends and development within the hospitality market.............................................................10
Conclusion...........................................................................................................................................12

HOSPITALITY AND VENUE MANAGEMENT 2
Executive summary
This report is about Hospitality industry which is one of the big and vast industries in all
other sectors of the world after information technology which has spread its range worldwide
in the connection of asset style, quality, and luxury lifestyle. The range of this industry is not
only contributing on the domestic level but also on the international level by providing a lot
of job opportunity to the people which have a direct impact on the economic form of the
world. This report includes the complex structure of this industry because of its involvement
in wide range of categories. As hospitality business is a people-oriented business, so the
possibility of conflict is for sure. This report also focuses on the various subsets of this
industry and along with the various opportunity for the exploring the industry which includes
the use of advanced technologies with the help of new applications which helps the industry
to have a wide range. It is also focusing on various aspects of issues within the industries and
growing competition within the industry. This report is also containing the management
tactics to handle these issues within the industry and how to use methods related to solving
the disagreement among the employees. This report is also focusing on the new growing
trend in this industry along with the expectation from millennial with their modern living
style, luxury wants and most important their main focus on health and related this which they
are not going to compromise on any cost because technology has made people very easy due
to it comfort availability which is moving the people towards health-related issues. This
report is also triggering on the new way of carrying hospitality business like providing your
property on rent to the customer for spending quality time with their friends, these properties
otherwise had gone unused. This report also includes the various challenges facing by the
hospitality industry due to the change of external business environment along with set up of
going green aspect. This report helps in understanding the new advance strategy used by
competitors within the same industry to acquire the topmost position in the industry.

HOSPITALITY AND VENUE MANAGEMENT 3
Introduction
Hospitality is actually a kind of relationship between host and the guest. It is actually an act
of welcoming the guest with the warm heart to feel them comfortable in all the sense during
their stay in the hotel. while venue management is a kind of management in which the
employees of the particular hospitality sees the whole arrangement, facilities, and events
which are going to be provided to the guest during their stay and make them feel as a king.
Hospitality industry today is one of the large and huge industries which have spread its
empire worldwide in the connection of providing employment, support to GDP of the
country. This Industry consists of all the desired range of small, medium and large size
enterprises. This range is not only contributing on the domestic level but also on the
international level by providing a lot of job opportunity to the people which have a direct
impact on the economic form of the world. The hospitality industry is complex in structure
because of its involvement in wide range of categories. These categories include quality of
hotel- luxury, mid-range or average, the location of the hotel, tradition of the hotel. As there
are many big as well as small players in this industry so the competition is becoming tougher
because the hotel service provider has not had to only compete on the international level but
also on the domestic level so its human asset should be well trained along with friendly
behaviour which is the first consideration in the market of hospitality industry. Today
hospitality industry is not only facing challenges from its competitors but also from the
external business environment which is changing on dynamic mode. Due to this it has given a
strong challenge to the hospitality as well as venue management to update their strategy on
regular pattern because the strategy which is working today will not work in the near future
so no hospitality company can sit comfortably after developing and executing some business
strategy and social media which has come out as a powerful tool in the hands of the customer
has a major impact on the image of this industry.

HOSPITALITY AND VENUE MANAGEMENT 4
Overview of Hospitality Industry
The hospitality industry is known as the wide group of present business which provides
services to the guest. It mainly focuses totally on the customer satisfaction part and provides
the unique experience to the guest. Hospitality industry also tries to create a unique image in
the minds of the potential customer (Study.com, 2018). ETC venues started in 1992 are also
in the business of hospitality, generated after seeing the poor quality of venues training. First
venue Avon mouth was opened in south London and was the super success and soon was
backed by Dunedin capital partners (CHM, 2018). As hospitality industry is known as the
total sum of all the category of the service sector and consists of various sectors like lodging-
accommodation, food, and beverage, tour and travel, entertainment and timeshare.
Lodging-accommodation
It is actually the main body part of service sector consists of bed and breakfast service to
other lodging services. Every year lot of people travel from one place to other and in this
traveling, the most important thing is food and transportation. Also during their travel, they
need the place to sleep, a luxury suite to stay but with much expense and a place where they
can comfortably order their favorite dish to enjoy.
Food and beverage
It is also one of the important sectors of the hospitality industry. It acquires top position in the
industry. It ranges from the simple food court to a high-end luxury restaurant. There are many
sub-categories in this category; it may be quick service, food management, food presentation,
beverages and catering businesses.
Tour and travel
It is another important category of hospitality management. Traveling from place to place is
not easy especially when we are not aware of that place which can cost us lot of money along
with time. They have maintained their service through trains, airlines, ships and crew
membership services (Chen and Choi, 2008).
Entertainment industry
It is a significant part of travel nowadays. If we have gone to someplace and we miss fun and
entertainment then we will be in a doubt whether we have enjoyed our trip or not. So the
success of any trip the need of fun is necessary.
Timeshare
It is now one of the most viral trends in the hospitality industry. In this, a place is booked or
right of that place is given to the customer for some specific time so that they can enjoy their
individual service with customized party trend especially popular in youth population (Cook
et. al., 2014).

HOSPITALITY AND VENUE MANAGEMENT 5
Opportunities for internationalisation
Internationalisation is known as the expanding of available resources and activities in the
other countries of the world afar domestic level. As due to globalization the external business
environment is on change. The organization should go to the international platform only
when the organization has gained enough dominance in the domestic level by creating its
brand value and then to earn more profit the organization should jump on the international
level (Ayoun et. al, 2010) Similarly, as ETC venues have gained enough names by getting
many prestige awards like PPA and also has won the most innovative model process on the
domestic level. ETC with the support of Dunedin Capital partner has invested millions of
dollar to upgrade and expand the venue. They are also named by London Stock Exchange as
one of the best company in Britain among 1000 companies. This outstanding performance
motivates ETC venue to go for international level. As today is the time of technology, the
company should make use of the latest updated technology with the help of its young
generation because it has been seen that around 80% of the world is on internet platform and
if the company will be able to convert population in to potential customer that they have use
of apps and with the help of marketing mix they have to position their image in the mind of
this population (Nadiri and Tanova, 2010). It has been seen that young people are more
comfortable with technology as compared to the old one and due to offer of globalization
there is very less restriction for any company to go on the global platform.It has to just
maintain the procedure – go for joint venture in which company should associate itself with
one of the companies of that country in which company want to business, then after seeing
the market of that country apply for license from that country to open a franchises of ETC in
that country and then after finding that our business is flourishing and company is struggling
with the supply phase (Sangpikul, 2009). Finally, go for establishing its own individual forum
so that the rising demand of the customers can be fulfilled so as to maintain a self-position in
that countries market where the company can enjoy its full profit and did not need to share its
profit with other company.

HOSPITALITY AND VENUE MANAGEMENT 6
Managing issues within the hospitality
As hospitality business is a people-oriented business, so the possibility of conflict is for sure.
As, we know that two people cannot have the same mindset or thinking because of their
biological difference, their cultural difference or maybe their behavioral difference (Chung
and Parker, 2010). As this business is a multicultural business which involves people from all
places or from different countries. So, their way of thinking style cannot be same and will
give birth to conflicts. So, it is the responsibility of ETC venue to develop self-awareness
need in the employees regarding physical and emotional reaction related to the present
situation. Mostly regular response to conflict involves: ducking, cooperating, work together
and competing (Brochando, et. al., 2016).
Another issue in the hospitality industry is growing competition. So, ETC venue has to
handle this issue by providing something unique which is not yet served in the industry and
will surely separate ETC venue from rest of the competitors.
Finding and maintaining valued customer. This issue ETC venue can manage by providing
the quality food along with the best service like wishing them on their birthday or marriage
anniversary and on marriage which forms an emotional attachment with the potential
customer because it triggers the emotional sense of the person due to these important
functions (Hospitalitynet, 2018).
Produced food is going to waste. This issue ETC venue can manage by making optimizing
use of available resources and in case if some food is produced extra then it should be
provided to the needed one for free. So, instead of going waste it will serve someone's hunger
and at the same time, it will help in creating a unique image in the community that someone
cares about humanity which will be free of cost marketing (Mwangi, 2016).
The penalty tax is one of the major issues in hospitality. So, here ETC venue can manage by
forming a standard operating procedure by considering the rule and regulation. Make sure
that this SOP is strictly followed through the whole organization and also appoint some
person who will keep an eye on this issue and try to make aware all the employees the
importance of this SOP and the consequences of not following this SOP.

HOSPITALITY AND VENUE MANAGEMENT 7
Human resource management and operations
Hospitality industry knows that employees of the company are the most important asset. As
concern to hospitality industry, the business process totally runs on the quality, hardworking
of dedicated employees. Having a qualified workforce will distinguish the company or
organization from other companies or organization (Write pass, 2012). The human resource
management department covers almost all the important part related to the human aspect,
right from hiring the best employees which will truly contribute to the growth and
contribution of the organization. HRM department critically evaluates every possible aspect
of the candidate for the interview .HRM department almost covers all possible areas of the
organization because of which it is given significant importance to the organization. One of
the most important duty or responsibility of the HRM department is to retain the most
experienced employee. As, company have invested a lot of money and time in training these
employees, which will be waste if they leave the company and also if such experienced
employees will leave the company and joins its competitor, then it will be a total disaster
because these experienced employees can turn the table on the sides of the competitors
through good knowledge and their hand on experience and sometimes the employees do not
find their career in the hospitality line and do not want to continue this line further and want
to leave (Gruescu, et. al., 2008). So, it becomes a challenging job to retain these employees as
compared to those who are interested in this line but want to leave because of no salary hike
or the bad working environment. While operation serves as the backbone of the company
because it is involved in almost all the process of the company. Similarly, the operation will
play the very important role in the working process of the ETC venue. Operation oversees the
management of food and related materials. The operation is also responsible for the
inventory, supply, and purchasing of the service related materials. Toady role of operation is
to make the process run on lean management theory which focuses on minimum waste along
with the strategy of continuous improvement because operation believes that a change is very
difficult to introduce on immediate bases so it is better to go for step –step change which
stresses on slow but continuous change. Operation department also sets goals and objectives
for the organization along with the guidelines for how to achieve these goals; they also set the
difference between the short-term goal and long-term goal for the company. As concern to
ETC venue, their short-term goal is to focus on maintaining their quality on the domestic
scale and long-term goal for them is to spread their business empire all over the world or go
global through the help of strategic alliances, partnership, and franchise (Write pass, 2012).

HOSPITALITY AND VENUE MANAGEMENT 8
CSR and sustainable issues
CSR is also known as corporate social responsibility. It is basically a concept where
companies decide to work for the welfare of the society with the cleaner environment. Every
company believes that whatever they earn is all because of society in which they work. So, it
is their duty to give something back to the society in the form of CSR. Corporate social
responsibility (CSR) is not the compulsory duty which every company has to do. It is
believed within the company that every company which is working in any business
environment is a part of society. CSR gains its popularity in 1960. A company has basically
three business dimensions: economic, social and environmental. So, if ETC venue wants to
grow it has to give an equal amount of importance to all these three dimensions. The basic
concept is that company which is in the operating form has to take care of its surroundings in
any form which they want. (Kang, et. al., 2010) A company which is involved in the CSR
activity is believed to be one of the most favorable choices for the potential customers
because society is in the concept of if someone is taking care of our society, so it is our duty
to support that company in the matter of its growth. This believes in not only supported by
only potential customers but also the shareholders of that business i.e. vendors, partners,
investors and also by its employees (Inoue and Lee, 2010). In present companies are expected
to take the responsibility to solve such a problem which appears to be big on the individual
level and if the company disregard such activity, then most probably the society will boycott
such company. Due to innovation in new technologies, consumers are now more aware of the
business behavior and CSR activities of the company. As the consumer is in believe that
company and consumer are in the process of impacting positive changes on social and
environmental issues of the society. Consumers have always great expectation that they
should associate themselves with that company in the term of the business transaction which
has a good reputation on the social platform. (Baum, 2008)
Sustainable issues
Go-Green
As hospitality industry business is associated with the business related to the people and as
we know that people are social animals which have to live in a society where they exchange
their values, believe ideas and also get influenced from the society. So, the taste of the people
changes according to the situation which gives rise to issues. One of the biggest issues in
present time for the hospitality is going green. Go Green is related to the environmental
profitable. So, the hospitality industry has to go through sustainable growth and it has three
basis people, planet, and profit. So, in case of ETC venue, the company has to consider all
these aspects into full consideration if they really want to develop themselves (Overton and
Lowry, 2013).

HOSPITALITY AND VENUE MANAGEMENT 9
Labour issue
As the cost of everything has not remained same as it was, so the cost of labor has also
increased. This increased cost has almost acquired 44% of the total expenses. This expense
cannot be avoided because labors are always in demand. But in this case, ETC can make use
of expense management expert which can manage this un- avoided demand in such a way
that the effective and efficient use of labor can be utilized in the best possible way to give
optimum utilization of available human resources (Baum, 2008).
Increased competition
It is believed that hospitality industry has become overcrowded. As all are in the same
business so the market is getting shrunk because every company is fighting for the same
piece of cake. So, if ETC has to remain in the market as it positions it has to adopt some
competitive strategy may be providing varieties or may be related to price or may be
providing something unique which is not been served by any company in this
market( Buyers,2017).
Data mining and technology
In present time everything moves around the numbers. Number act as a benchmark for any
exchange may be money, labor, service or use of technology. Data mining plays a big role
because it identifies self-generated decision related to the potential customer with the help of
technology. But updating this technology is not easy because it requires heavy investment in
the count of money and it also wants upgrading the software on the regular base. So, ETC has
to manage cost allocation related to the overall expenses (Law and Buhalis, 2010).

HOSPITALITY AND VENUE MANAGEMENT 10
Future trends and development within the hospitality market
For many years, the hospitality industry has been enjoyed the survival with the undisturbed
market where progress and revenue was steady year after year. In that situation the big brands
were getting much bigger, flourishing their business empire. Then people have started the
new trend of hospitality in which they provided their place as an accommodation to those
people who are looking for it on the rental basis. This trend does not make assets but makes
through meting out fees. So, this model helped people to rent their properties which may go
not used. But now the climate is completely changed and even organizations are also aware
of the fears of modernization and technology. Actually, it is the time of millennial (Line and
Runyan, 2012). This is the world that has a lot of influence on a lot of things. A study was
conducted by The Cornell center for hospitality research in which millennial almost present
50% of the hospitality industry. The millennials are not interested in traditional hospitality;
they are expecting something different which will separate them from rest of others. So,
organizations need to be ready for this trend and should form a strategy on the basis of their
demographic habits and traits. As they are in the younger age which indicates that they are
interested in more excited hospitality with reasonable price. The study also shows that 21 %
of millennials said that they had used tablets to shop instead to visit that place. 87% of
millennials said that they make proper use of internet facility for booking. From this study it
was found out that half of the world is now connected through mobiles it may be searching
for hotel, place or it may be buying some product (Dwyer, et. al., 2009). So, the organization
should attach them with the applications related to the mobiles so that they will be able to
cover as much larger area as it is the fastest mode of reaching to the population and form the
potential customer out of this population. As technology has made things very easy going
which has made the people lazy but the same technology has helped to advise the health
maintains of the person. According to the study it has been found out that today people are
more health conscious and people have become choosy while selecting the hotel as they
expecting the facilities related to health like gym, pools (CG Davidson, et. al., 2011). So, this
expectation should be kept in mind by these organizations while operating in this business.
(Source: World Tavel Monitor -2016)

HOSPITALITY AND VENUE MANAGEMENT 11
( Source: World Tavel Monitor -2016)
This trend simply says that the dominance of Asia Pacific is growing in the hospitality market
as compared to another region like Europe, America and even Africa & Middle East (Su, et.
al., 2013).

HOSPITALITY AND VENUE MANAGEMENT 12
Conclusion
There is a global increase in the hospitality industry. The trend that is affecting the most is the
importance of providing outstanding services to the customer which will support them to
form loyal customer base. The new technologies are being used to enhance and improve
customer services. The new trend is also involving the policies which are environmentally
friendly which will not only save a lot of money but will also help in using the natural
resource as one of the most attractive things which will help the organization in attracting
more and more customers. From the world tour and travel council, it is clear that Asia Pacific
is the world fastest growing region of the world leaving behind Europe and US behind. The
future trends in the hospitality industry are including more and more green and eco-lodgings,
development of mega hotels with advanced technology and physical social networks to be the
best distribution channels. It has been seen that hospitality industry is one of the single largest
job provider in the world and as this industry always in need of financial support due to the
growing trend and so the present situation of the hospitality industry is of survival trend
because large groups are investing huge flow of money on their high advance technology so
that they can gain advantage on the other organizations present in the industry. While these
movements will form the future of hospitality business, there are some dares for industry
leaders that are desirable to overcome with the phase in order to manage with the varying
fashions of the industry. The major effort of the industry is now diverted towards
environment safety and also the attitude of the people must be adaptive to the revolution. The
industrial giants should be open to variation and adopt the overseas systems that are being
extremely helpful for the growth of hospitality industry.

HOSPITALITY AND VENUE MANAGEMENT 13
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1.

HOSPITALITY AND VENUE MANAGEMENT 16
Appendix:
(Source: World Tourism Organisation, 2016)
This data is clearly indicating that the public life and the standard of living of the people all
over the world are fastly changing. There is an upsurge of the new trend that has overall
impacted the growth of Hospitality industry. The main reason behind this high trend in the
hospitality industry are upper disposable income, new tourism trends, better work-life
equilibrium, more female workforces and go green. Information from this data is informing
that presently people are excited to explore new cities, places, history and ancient times.
Regular advancement in technology and developing customer beliefs about how they need to
interact with companies-online reception, mobile lodging passes and keyless hotel lodgings
are some of the examples. This growing trend is driving an additional cultural imperious,
suppleness and learning. This data is showing that market leaders are identifying the need to
build values that are flexible so that they are better placed to respond to varying market and
competitive surroundings and control data and technology to alter the client experience at the
point of client contact (ITB, 2017).
As per world tour monitor during starting months of this year, outbound tours increased by
3.9%. Furthermore, international tourists went on slightly extended trips on average so far in
2016, with the transformation from short tours to longer tours and also spending per tour
increased slightly. It was predicted by IPK international that the world outbound travel
market turnover for this year will be $ 2 trillion which is increased by 7% from 2015 (SOEG,
2017).
As per IPK international, Europeans have changed their traveling behaviors by choosing safe
destinations, including a inactivity in sun and beach outings, while going on new city tours.
European journey's end had varied results and greeted more Asian visitors in 2017. The
economic conditions of Europe in 2017 and start of 2018 travel remain generally positive as

HOSPITALITY AND VENUE MANAGEMENT 17
per Institute for economic research in Munich. The European economy has achieved low
growth in 2016 and now the trend is improving in 2017(WTTC, 2017).
This data helps in conducting SWOT analysis for the hospitality industry which will help us
to better understand the changing trending market, not for only present but also for the future
aspect.
SWOT
Strength:
Hospitality industry provides safe accommodation for the people when they are at different
place. With lots of rooms on a worldwide scale, there is always a room to stay in that exactly
fits a client`s needs. From the domestic hotel to the international brand, admitting the people
who halt there a chance to ease prepare for a professional function let everyone be able to
love their time away from home as much as possible. Hospitality industry serves as a major
source of economy. This industry brings people together into a community during their stay
and while availing the services and also provides a support hand to other small related
business.
Weakness:
The main weakness of this hospitality industry is its price. The premium always charges the
high price, which means thousands of dollar per night. This creates a wall in front of other
demographics to experience premium. Low-cost hotels are also exiting in the world but their
service and food will be of that category. Another weakness of this industry is unique tax
structure in different places. In some case, very high level of sales tax and fees are charged to
meet the overall taxes.
Opportunities:
Every city has a specific set of magnetism that makes it an attractive place to visit.
Hospitality industry can make use of this opportunity and can change settings of attractions
that are available with often just a small investment. The average client does not travel miles
just to see a place, but they travel to have fun, enjoy food quality and have a little bit different
taste.
Threats:
The main threat to the hospitality industry is from the related small business like boutique
which will provide their serves in lower rates as compared to the other luxury hotel and their
services of personal care can have the huge impact on the business. Political instability can
disturb the whole business aspect of the hospitality industry along with the association of
changing economic condition. As the market is not stable, it can have a major impact on the
pockets of the average householders which will result in the decline of the hospitality
industry.