Contemporary Hospitality Industry Report

This report provides an overview of the contemporary hospitality industry, focusing on Hilton Hotels. It examines different types of businesses within the industry, the products and services they offer, and the functional and operational departments of Hilton. The report also analyzes the organizational structure of Hilton, highlighting its hierarchical nature and the roles of various departments.

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
3a. Different types of business within hospitality industry and diverse products and services
offered.....................................................................................................................................1
3b. Functional and Operational Departments of Hilton.........................................................5
3c. Organisational structure of Hilton Hotel. ........................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
Online...................................................................................................................................10

INTRODUCTION
Hospitality industry is a big category of fields in the service industry. It includes the
hotels, lodging, cruise line, travelling etc. Present assignment is about the Hospitality Industry.
Hilton, one of the oldest multinational hospitality organisation headquarter in McLean, Virginia,
United States. Present report will provide the deeper insight of different types of businesses in
hospitality industries and the product and services offered by them. The study will cover the
scope of various types of sectors in the industries like hotel, restaurant, bars , pubs etc. later
assignment will provide the brief introduction of Hilton hotel along with its organizational
structures, operational and functional departments. Furthermore, assignment also highlights on
different types of business in hospitality industry with diverse products offered by them.
3a. Different types of business within hospitality industry and diverse products and services
offered.
The term hospitality industry refers to broad category of commercial undertakings of the
world (Nieves and Segarra-Ciprés, 2015). These are fields in service industry that includes
lodging, event planning, theme parks, transportation, cruise line, travelling and much more in
tourism industry. Thus, it provides services to customers and focus mainly on satisfying
customers and specific experiences are provided to them. Further, hospitality means to welcome
people cheerfully whether known or strangers. It builds relationship between guest and host. It
features both the perspectives including historical and new trends discussion in various sectors of
hospitality business (BARROWS, POWERS and REYNOLDS, 2012). Thus, hospitality industry
includes different types of business that includes following-
 Food and Beverages
 Travel and Tourism
 Lodging-Accommodation
 Recreation and Entertainment
 Timeshare
Food and beverages- This is the largest segment of hospitality industry. It is known a
professionally by its initials as F&B. It consists of establishments that is engaged primarily in
preparing, meals, snacks, and beverages for immediate consumptions. It enhances guest visiting
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hotel with help of providing excellent food and best customer service. This service attracts
customers mind-set towards them. It can also function as part of other business like in movie
theatres. The servicesd offered by them are intangible. Thus, products and services offered by
them has been discussed in below context-
 Quick- service establishments - These are restaurants that provides customers garner
quick snacks, drinks and meals.
 Catering business- This provides catering services on some special occasion. Such as
weddings, birthday parties, and many more.
 Full- service restaurants- These includes waiters that takes the orders for food from
travellers. It is a full service restaurant.
Services involved are
 Food management - This service starts from production of foods and includes food
transportation and storage. Many hotels serve naturally organic foods that attract
customers easily.
 Food presentation - People attracts to food that is well presented and orders the same.
Thus, they should maintain presentation of food in order to increase and improve
hospitality experience.
 Restaurant management - This is a science that teaches managing restaurant with
proper skills. It also includes managing foods, beverages, and maintain quality
representation of food. Thus, customers gets easily attracted to such service and
representation of food.
Travel and tourism - This deals in services where people moves from one place to another. This
includes bus, trains, cabs, ships etc. it has two types as leisure travel and business travel. Thus,
leisure travel is one where person spends on food, lodging and recreation while a holiday trip and
business travel is that when person travels in terms of work and spends money on food and
lodging. Hence, encouraging people for travelling from one place to another is main function of
travel industry. While travelling, people spend money on hospitality. It becomes fact that most
important segment of hospitality industry is travel and tourism as other business depends on it.
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It makes backbone of hospitality industry. The services offered by them are that they
offer high and possible facilities so that customers enjoy their trip for business education,
entertainment, holidays and many other things. Like all other, travel and tourism also seeks focus
from customers, leniency, relationship management and other integrated marketing skills for
running smoothly that further leads to expansion and diversification. It also offers
accommodation, transportation, tour operators, retail travel agents, shopping centres, restaurants,
tourism information centre, museums, temples, etc.
Lodging-Accommodation - This means accommodation for some period that is place to sleep
for some days (Davis and et.al., 2018). This industry includes fancy hotels, youth hostels, elder
hostels, camp grounds, motels and other businesses where people can stay or sleep overnight for
some days. This business markets in other areas business travellers, leisure travellers, long stay
travellers, budget travellers and special travellers like people working with government and
military. They offer tangible services. Thus, diverse products and services are provided by
lodging industry which includes following-
 Lodging - When people plan for a holiday trip they first look for places where they can
sleep comfortably. So company must ensure that they give attractive offers and facilities
to customers and safe shelter where they remain safe from atrocities of nature.
 Suites - Apart from lodging, they also provide luxury suites where luxurious and rich
people feels comfortable to stay and sleep. This is very much expensive as compared to
general lodges.
 Resorts – this are the third type of accommodation which has popular place among
travellers. Resorts helps in bringing them close to the nature and surroundings and break
from daily routines, that helps them in getting relaxation and freshness.
Recreation and Entertainment - This is an industry which consists of activities that are done
by people to rest, relax and enjoyment (Kim, Lim and Brymer, 2015). Thus, such types of
business are known as recreation business. Entertainments that includes shows like movie or
theatre, attractions, and places of special interest like zoos, museums, sports are all types of
recreation business. Entertainment has become significant part of travel these days. So business
has to take care of this by providing entertainment activities in kitty as many as possible for
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them. They offer tangible products and services. Thus, activities that are included in
entertainments are as follows-
 Marinas - If anyone wants to spend time with friends and family by partying with them,
then this becomes the best option for them. They are provided with private yacht where
people can enjoy by dancing, playing games and enjoying best of their life.
 Sports and Gaming - This becomes basic thing that people find for on travelling their
holiday trip. This includes casinos, swimming pools and other similar activities which are
becoming important part of hospitality sector.
 Cruise - People like and wait for their trip to be spend on luxury ships which sails across
blue oceans and under clear blue sky. This has become a significant part of hospitality
industry.
 Nightclubs - Hotels mainly provide nightclub services to people travelling for their
holidays as people love to dance on favourite song to relax themselves.
 Bars - Travellers enjoy sitting around a table and enjoy drinks with friends and family as
these helps in relaxing themselves. So business must provide bar facilities in order to
attract tourists.
Timeshare- It is an emerging and important sector of hospitality industry (Bowie and et.al.,
2016). Here, people with groups take ownership of the place for a specific time period during the
year. This business gives choice to people in order to own their choices and enjoy facilities by
buying a part and getting a membership plan for a particular time period they offer tangible
products.. The place that person buys for time being includes-
 Convention Centres- At this place, people gathers in bulk for seminars, meetings,
parties and such offers makes the base of hospitality industry.
 Villas and resorts - Individual can own villas and resort for some time period and can go
and enjoy their holiday trip with family and friends.
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3b. Functional and Operational Departments of Hilton
Hilton is a global brand of hotels and spa having fill service. It was founded by Conrad
Hilton and their properties are owned and managed by independent operators by Hilton. Hilton is
an American multinational hospitality company that manages and franchises a broad portfolio.
Hilton hotel is headquartering in McLean, Virginia, United States (Jauhari and Bharwani, 2017).
It is founded in May 31 1919. Hilton is one of the oldest hotel of united states. The parents of
Hotel Hilton is Conard Hilton. Including Conard Hotels and Resorts , Hilton has 14 brands
across different market segments. The tall organizational structure of Hilton consisted of several
layers of management. The employees of Hilton come in lower layer of the structures with no
managerial authority. The employees report first or next layer of managements (Kandampully,
Zhang and Bilgihan, 2015). Every layer in the organizational structure informs manager, and
these managers communication same information to the next layer of manager which ends with
the president or CEO of organization. The level of responsibilities and power increases with each
layer with the final authority. The operations and functional departments of the Hilton is
Basically divided into four major departments which includes-
 Housekeeping Department
 Food and Beverage Service Departments
 Food Production or Kitchen Department
 Front Office Department.
Housekeeping department
In this Hilton is responsible for the proper management of guest rooms and the
cleanliness of entire public area of hotel (MEDLIK and INGRAM, 2016). It is also liable for
cleaning up and keeping hotels rooms in good condition. Laundering the guest linen , issuing and
taking staffs informs on clean to dirty basis, cleanliness of every area inside the Hilton are some
other duties of the referred to department. Housekeeping also have to maintain the coordination
with other departments of the hotel (Radojevic, Stanisic and Stanic, 2015). The housekeeping
sector have to co-ordinate with front office, human resource, engineering, purchase, food and
beverages , security and stores of the Hilton.
Food and Beverage Service department
This section is one of the important sector for the hospitality industries. It provides the
services of prepared food items, beverages and tobacco in a hospitable way as per the demand of
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the customers. The service provided by this division includes may be in coffee shop, lounges,
bars , banqueting and room service etc. the food and beverage service section coordinates with
other departments which includes food and beverage production, front office, kitchen
stewarding, purchase, housekeeping, engineering and maintenance, account, human resource and
sales and marketing.
Food production and kitchen department
The food production and kitchen division of Hilton is well designed close area with
skilful chefs and all essential equipment’s such as, tools and utensils required for the preparation
of food items (Solnet, Kralj and Baum, 2015). The department consisted of skill food production
team which prepares food according to the guest’s order.
Front office department
It is the most visible territorial division in a hotel. The reception desk in the front office is
the focal point of the activity. This is usually place at which guest receive the first impression of
the hotel.
Operational departments of the Hilton
Operational sphere of the Hilton includes the sales and marketing, finance and account
and personal human resource department.
Sales and marketing department
The sales and marketing division of the Hilton markets the products of the Hilton. This
department of the hotel is liable for generating new ideas for business for the hotel. This includes
conventions, sales of the rooms, functions or even bar and restaurants. The sales and marketing
section also tackles the advertising and promotions of the hotels.
Personal and Human Resource Department
Personal and Human resource sector is liable for the hiring of the staff. This territorial
division not only hires the staffs but also provide training and development programs fro them.
The human resource department provide the manpower to the Hilton at the time of requirement.
They also take every information of the employee with themselves.
Account and Finance Departments
This administrative division of Hilton monitors all the financial activities of the Hotel
(Wang, Tsai and Tsai, 2014). The financial activities include the processing of payrolls,
accumulating, operating data and preparing internal and external reports.
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Therefore, there are other two departments such as purchase and store which entitled all
the purchase transactions like purchase of raw material, remaining stock etc. and security
includes the safety and security of hotel guests.
3c. Organisational structure of Hilton Hotel.
Hiltons organisational structure is hierarchical because of massive size of business that
includes 13 brands that serves 140 million guest in 2015 (JOHNSTON, CLARK and SHULVER,
2012). it is a way in which organisation is structured that uses different level of authority and
vertical link. In this structure, higher level control lower levels of hierarchy.it is in a pyramid
structure.
Illustration 1: Hilton's organisational structure
(Source: 51 Pretty Gallery of organization Structure Chart, 2016)
Organizational structures are the system in an organization that are made to acknowledge
that how all the workings and activities inside the organization are directed in order to achieve
the goals of an organization (BRYMER, MALL and BRYMER, 2017). The organizational
structures of Hilton follows the tall structures. . This types of structure permits the organization
and leaders of top level of Hilton to make major decisions of organization regarding operational
strategy and then exchange all those decisions to upper level and mid-level managers. A various
levels of authorization for different action taken by managers are offered by a tall organizational
structures. This type of structures assumes that the employees of junior levels do not have much
knowledge required for the decisions of the company.
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CONCLUSION
Thus, from above report it has been concluded that different types of business in
hospitality industry has to provide diverse products and services in order to satisfy customers’
needs and wants and attract increased number of travellers. Further, this report also highlights on
various operational and functional departments of Hilton and services offered by the in terms of
maintaining and gaining high reputation for a successful business.
This assignment also concludes the organisational structure of Hotel Hilton that it follows
Tall organisational structure that consists of various management layers and the duty of every
layer is to report to top manager in case of taking some decisions regarding business.
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REFERENCES
Books and Journal
BARROWS, W., POWERS, T. and REYNOLDS, D. (2012). Introduction to Management in the
Hospitality Industry. 8th ed. Chichester: Wiley and Sons.
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge
BRYMER, R., MALL, L. and BRYMER, R. 2017. Hospitality: An Introduction. 16th ed.
Dubuque: Kendall Hunt Publishing.
Davis, B. and et.al., 2018. Food and beverage management. Routledge.
Jauhari, V. and Bharwani, S., 2017. An exploratory stud y of competencies required to
cocreate memorable customer experiences in the hospitality industry. In Hospitality
Marketing and Consumer Behavior (pp. 159-185). Apple Academic Press.
JOHNSTON, R., CLARK, G. and SHULVER, M. 2012. Service Operations Management.
Harlow: Pearson Publishing.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Kim, W.G., Lim, H. and Brymer, R.A., 2015. The effectiveness of managing social media on
hotel performance. International Journal of Hospitality Management. 44. pp.165-171.
MEDLIK, R. and INGRAM, S. 2016. The Business of Hotels. 4th ed. Oxford: Routledge.
Nieves, J. and Segarra-Ciprés, M., 2015. Management innovation in the hotel industry. Tourism
Management. 46. pp.51-58.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
Solnet, D., Kralj, A. and Baum, T., 2015. 360 degrees of pressure: The changing role of the HR
professional in the hospitality industry. Journal of Hospitality & Tourism Research. 39(2).
pp.271-292.
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Wang, C.J., Tsai, H.T. and Tsai, M.T., 2014. Linking transformational leadership and employee
creativity in the hospitality industry: The influences of creative role identity, creative self-
efficacy, and job complexity. Tourism Management. 40. pp.79-89.
Online
51 Pretty Gallery Of organization Structure Chart. 2016.[online] Available
through:<http://amazingfoodandtravel.com/organization-structure-chart/>
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