The Contemporary Hospitality Industry (pdf)

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of business within hospitality and products and services offered............3
P2 Range of operational and functional department .............................................................5
P3 Contribution of hospitality to local, national and international economies......................8
TASK 2............................................................................................................................................8
P4 Range of different operational roles within industry........................................................8
P5 Skills required for roles and current skills shortages........................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................13

INTRODUCTION
Hospitality industry lies within service which includes event planning, transportation,
lodging, travelling and tourism. It is multibillion dollar industry which depends on availability of
disposable income and leisure time (Radojevic, Stanisic and Stanic, 2015). It is very fast growing
sector in market. The given assignment is based on Hilton Hotel which was incorporated in 1919
at United States. It provides full service of hotel and resorts which exist in 85 countries. Here
will be discussing about different types of business within hospitality and their products and
services. There is category of operational and functional department and contribution to local,
national and international economies. There are different operational roles within hospitality
industry along with skills required and current skills shortages.
TASK 1
P1 Different types of business within hospitality and products and services offered
Hospitality industry is important for nation but customer service is unifying sector which
is shared by all segments. A sector of hospitality industry ensures need and want of traveller in
holistic manner. Success depends upon service provided to customer in effective and efficient
way. Different types of business within hospitality are described below:
Lodging Accommodation- This sector covers luxurious hotels, campgrounds and lavish
resorts. Accommodation is important as it range from bed, breakfast, enterprises and other
facilities which offer lodging services (Boella and Goss-Turner, 2013). Customer should be
provided efficiency, comfort, world class amenities. In case of extravagant resort should provide
visitor privacy and exclusive services. There are three important things which people prefer for
travelling that is accommodation, food and transportation. Nowadays, hospitality industry
focuses on improving lodging of consumer for better experience.
Food and Beverage- Food and beverage is also an important sector which ranges from
high end restaurant and catering establishment in between. There are various categories to
determine food service industry which are as follow:
Quick Service Establishment- It means providing services at quick basis which can be
drinks, meals and snacks and posses few employees. It has concept of self service such as
McDonald’s, Pizza Hut and KFC.

Catering Businesses- It provides food and beverages services for special occasion which
can be wedding, birthday parties.
Full Service Restaurants- These are eateries and restaurants which offer main course,
meals and drinks. This establishment usually seat at table and require waiters to take order for
food.
Travel and Tourism- Travel and tourism is large sector industry which has many
players across globe. It includes airlines, cruise ships, trains and crew members for service
(Kandampully, Zhang and Bilgihan, 2015). This business means people moving from one
destination to other. Hospitality sector cannot gown without assist of travelling and tourism and
backbone of nation. It is considered as huge domain which demands strategy, innovation and
novelty at every step. This includes formal and informal travelling. People from different parts of
world travel for holiday, education, businesses, entertainment and demand customer focus,
relationship management, leniency skills for expansion and smooth running.
Entertainment – Entertainment is an important business of hospitality industry. People
require fun and entertain while travelling for better trip. Some of experiences of entertainment
are as follows:
Marinas- It is important place for partying along with friends on private yacht where
games, dance and enjoying took place.
Sports and Gaming- Sport and gaming things which people requires while travelling
which included swimming pools, Casinos and other activities.
Cruise- It is essential part of hospitality industry. Nowadays prefer to spend time on
luxury ships which sail across Blue Ocean under clear sky.
Nightclubs- Every people love to dance so hotels should have nightclubs facilities for
their visitors.
Timeshare- It is vacation ownership of place in which people either parties or individual
own right to place for specific time period. It gives an option of our own choices and enjoys
facilities by getting membership plan or buying part of facility.
The products and services offered by hospitality industry can be lodging, suites, resorts,
banking, online booking, reservation, internet, laundry.

P2 Range of operational and functional department
Hotel industry cannot run without right people and resources in right department.
Appropriate department helps in achieving success and growth of business. There are various
departments for smooth and efficient operations. Hilton Hotel also requires various operational
and functional departments for running of entity which are described below:
Organizational chart of Hilton Hotel:
Operational Department- It is department which is concerned with controlling and designing
process of redesigning business operations and production of goods and services (Jones, Hillier
and Comfort, 2016). Different operational department in Hilton Hotel are as follows:
Front Office- It is most visible department in hotel and is also called reception desk. It is
situated at that place where guests receive first impression. It is communication centre for hotel’s
operation. It includes information of visitors, front office cashier and registration section. Other
Illustration 1: Organization chart of Hilton Hotel
(Source: Organization chart of Hilton Hotel, 2019)

sections can be business centre, telephone exchange and reservation. These people are liable for
cash & credit handling, reservation of rooms, registration number and other services to guest.
Hilton hotel has effective front desk or receptionist for better performing and results. The
respective department is interrelated to with other organizational departments such as this
department will communicate to other departments about the booking so that they prepare
accordingly. For example front office done booking of a event then they will inform about to
other department such as housekeeping, security etc. so that they all conduct planning and make
event successfully.
Housekeeping- This department handle management of guest rooms and cleanliness of
all public areas of hotel. There should be close relationship between front office and
housekeeping so that information can be easily updated about guest rooms (Bharwani and Butt,
2012). Example, rooms available for letting, out of order, occupied, dirty and vacant.
Housekeeping and receptionist have department head or supervisor for reporting and who report
to division manager. Both are responsible for its own specific task and have to work together for
teamwork. Hilton Hotel has very effective staff for housekeeping department. Such as for
conduct event in effective manner the housekeeping department will contact with finance
department so that they provide funds which help them in arranging resources which is required
to conduct work properly.
Security- This department is responsible for security and safety of visitors, employees
and guests. It includes monitoring equipments, patrolling hotel premises, ensuring security of
guests, visitors and employees along with their belongings. Hilton Hotel has good team of
security which encourages people to visit and stay. The respective department is interrelated to
other department when front office department confirm them about the event, security
department will check as well as improve their security system so that event will conduct in
proper way.
Engineering- This department is responsible for operation and maintenance of machinery
& equipment which includes lighting, heating, air conditioning. They are also liable for carrying
task of carpentry, plumbing, upholstery and small building and other works. In context of Hilton
Hotel, skilled and educated are hired as engineering department for running of business. Such as
when event will occur at Hilton Hotel engineering department contact with financial department
in order to know budget of their guest. Through this they able to arrange lighting as well as

decoration facilities according to the event. In this they also communicate with other department
in order to know their planning so that they can make their decoration as well as lighting in
effective manner. This shows the interrelation of engineering department with others at
respective hotel.
Functional Department- Functional department is grouping of individuals on function
basis each performs in organisation including accounting, manufacturing, marketing and human
resources. It is also process and activities grouping based on their need for accomplishing
multiple task. Functional department in context of Hilton Hotel are as follows:
Purchase and Stores- Hotel is regarded as commercial endeavour in which raw materials
are purchased, giving finishing and selling at high prices. Materials are purchased for supporting
service industry. Here, purchase department is responsible for all requirements of hotel. Incharge
of this department is purchase manager. With change in trends this responsibilities is given to
Material manager who look after storing and purchasing activities. Hilton Hotel is large industry
which required skilled manager for such activities and keeping all bills and receipts of purchase.
Such as for the respective department is interrelated with other stores such as finance. This is so
because when they need to purchase any product they will contact with finance department in
order to get proper funds.
Sales and Marketing- This department is responsible for generation of new business for
hotel. It could be functions, restaurant and sales of room, conventions and bars. It also takes care
of advertising and sales promotion of hotel at market. Sometimes Hilton Hotel requires this
department for selling their products and services. The respective department is interrelated to
other department such as for conducting marketing and sales activities they have to ensure about
budget of hotel on a particular activities. Through which they able to design as well as plan their
activities in effective manner according to the budget of the respective hotel.
Accounting- This department is very important in all organisations which monitor all
financial activities. The respective department includes maintenance of various activities such as
cash receipts, operating data and banking, processing of payrolls, auditing and preparation of
internal reports (Gin Choi, Kwon and Kim, 2013). Hilton Hotel has this department to know
actual profit of firm and running financial activities. This department is also interrelate with
other department because they develop budget of all department according to their activities.

Along with this, the respective department also provide funds or capital to other departments so
that they conduct their work in effective manner and through which company attain their goal.
Human Resource Department (HRD) - It is related with hiring, training, development,
firing of hotel staff and responsible for industrial relations, welfare and collective bargaining. It
has gained importance because of competition, shortage of labour and legislation. As Hilton
Hotel has HR manager for handling all activities related with people. In respect of this
department it is also interrelated with other department of a Hilton Hotel such as if any section
required of respective hotel required new employees they will contact to human resource
department. This is so because the respective department hire as well as train candidates
according to requirement so that they conduct their work properly.
P3 Contribution of hospitality to local, national and international economies
Hospitality industry is growing rapidly which contributes 10% of world GDP. It is
expanding globally and promoting growth in multicultural environment. It is built at global,
national and regional levels. This industry constitutes various sub sectors out of which
restaurants and hotels are major source for economic growth. This industry contributes at local,
national and international economies. It was recorded that 700 million tourists out of total arrived
at international level. Through help of data it was shown that 241.5 million increase and annual
growth of 4.9%. Hospitality provides more than 10% employment at UK which is 2.5 million
people (Brotherton, 2012). Because of McDonald’s, Pizza Hut, Burger King has developed
effectively which contribute for economies of nation. Improvement in economy leads to
enhancement of living standards. As per British Hospitality Association more than 500,000
employees engaged in this industry at UK. International tourism represents 7% world export and
30% service export.
TASK 2
P4 Range of different operational roles within industry
Every hospitality industry has various departments such as functional and operational. In
order to run such department various people are required which includes receptionist, security,
engineers, housekeeping and other staff. Each and every have their own assigned role which is
different from each other and performs accordingly. There are various roles of operational
department within hospitality industry which are as follows:

Role of Division manager- Responsible for supervising employees involved in operation
of front areas of hotel. Coordinating with various departments and maintain communication with
them for serving guests in better way. Also handling and maintaining responsibility for
budgeting, staffing and purchasing. Supervising rooms division payroll, monthly plans and
availability controls.
Role of Front Office or Receptionist- They sell guest rooms, assign room and register
visitors (Lub and et. al., 2012). They also coordinate with guest services and maintaining room
information, monitor credit and accounts of arrival. Assist in providing information about hotel,
attraction points, surrounding, community, interested areas. They produce and complete financial
settlement and account statements.
Role of Housekeeping- They should check and monitor all cleanness at hotel. All areas
of hotel are covered under this person for regular checking and monitors. Housekeeping should
take care of clean and hygiene environment for attracting large number of customers and visitors.
Role of Engineering- These are responsible for taking care of technical department such
as heating, lighting, air conditioning. Each and every room should be checked for such facilities.
Every hospitality industry hires one engineering for proper running of organisation.
Role of Security- They are called security guard who possess different role such as safety
of employees and visitors. Also taking care of premises inside and outside for security.
Role of Maintenance- They are responsible for management of services and process for
supporting core business. They ensure safety of guest and staff within organisation; improve
energy efficiencies and reducing costs. They also protect integrity of building through
maintenance such as walls, ceilings, furniture, fixtures. Because of maintenance department,
hospitality industry is becoming more eco friendly (Wang, Tsai and Tsai, 2014).
P5 Skills required for roles and current skills shortages
Any person working in any organisation should possess some knowledge and skill for
effective running of business. These skills are very important for firm and perform duties. Entity
appoints only those candidates who have effective skill required in particular field. Hospitality
has operational and function department for running primary and secondary activities of
industry. These departments have skill required for various roles which includes:
Problem Solving Skills- Operational and function manager should possess problem
solving skills. They should be able to solve all issues and problems of visitors. They are very

effective and efficient people of organisation. Many alternatives should be available for solving
particular issue arises in firm. Thus, this is required in every entity because problems arise on
daily basis which need to be solved properly.
High Level of Customer Service- Career at hospitality means working in consumer
facing environment (Williams, 2012). For success criteria, firm should ensure about guest
entertainment, good time, care and availability of facilities. Here, high level of customer services
means ensuring that visitors need are met and happy with provided services and facilities. In case
of bad service, negative feedback for industry is received.
Good Communication Skills- In order to work in hospitality, it requires physically and
mentally behaviour of individual. This requires communication between management,
customers, staff and others. Manager and employees should have effective oral and written
communication for operating activities and running business.
Formal Training- As hospitality industry relies on government laws and regulations, so
this requires correct formal training and qualifications (Legrand, Chen and Sloan, 2013). It is
important to have high standard employees for firm. Thus, employees should be given training
and development programme for effective running of business.
Multi Tasking Skills- Employees should posses multi tasking skill for performing work.
In a day, manager needs to handle hundred of customers at a time, working on several tasks.
Thus, for success of firm, they should be able to work in group with handling multi work.
Culture Awareness- As people from different parts of world come to visit and manager
need to work with those people which possess cultural backgrounds. Customers do not share
same value, perceptions, belief system.
Language Skills- There are various people who come from various parts of world for
visiting and speak various languages. Staff and manager should be able to communicate with
them and provide good services (Raub and Robert, 2013). As it helps in creating loyalty and
brand value of that organisation. Language skill plays an effective role for serving customers.
Apart from this above required skill there are shortages of some skills which are
necessary for organisation. Many employees lack communication skill which required in
hospitality industry. As better and effective communication is required in firm which is lacked
and shortage by many staff which creates negativity for entity. Language skill is shortage by
many employees as they cannot communicate in different language with visitors or guest. Thus,

communication and language skills are major shortage found in hospitality industry. It decrease
value of business and goodwill in market. So, it need to be improved for better running, success,
profitability and sustainability of firm.
CONCLUSION
From this above report it can be concluded that hospitality industry is fast growing sector
in country which increases living standard of people as well as gross domestic product. There are
various types of business such as timeshare, accommodation, travel and tourism required in
hospitality industry for better results. Operational department manages current activities such as
maintenance, security and functional department handles HR, administration, accounting for
such firm. This industry provides job employment to large number of people, increase values at
local, national and international level. This assignment also concludes skills required for
hospitality such as communication, problem solving, multitasking etc for better running of
business. This all helps in achieving goal and objectives of enterprises.

REFERENCES
Books and Journals
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Gin Choi, Y., Kwon, J. and Kim, W., 2013. Effects of attitudes vs experience of workplace fun
on employee behaviors: Focused on Generation Y in the hospitality industry.
International Journal of Contemporary Hospitality Management. 25(3). pp.410-427.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal
of Contemporary Hospitality Management. 28(1). pp.36-67.
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.
Legrand, W., Chen, J. S. and Sloan, P., 2013. Sustainability in the Hospitality Industry 2nd Ed:
Principles of Sustainable Operations. Routledge.
Lub, X., and et. al., 2012. Different or alike? Exploring the psychological contract and
commitment of different generations of hospitality workers. International Journal of
Contemporary Hospitality Management. 24(4). pp.553-573.
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.
Raub, S. and Robert, C., 2013. Empowerment, organizational commitment, and voice behavior
in the hospitality industry: Evidence from a multinational sample. Cornell Hospitality
Quarterly. 54(2). pp.136-148.
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.
Williams, A., 2012. Understanding the hospitality consumer. Routledge.those
Online
What Are The 4 Segments Of The Hospitality Industry. 2018. [Online]. Available through:
<https://www.hospitalitynet.org/opinion/4082318.html>.
Organization chart of Hilton Hotel. 2019. [Online]. Available through:
<https://www.kisspng.com/png-organizational-chart-hilton-hotels-resorts-hotel-m-
1252669/>.