The Contemporary Hospitality Industry

This document provides an overview of the contemporary hospitality industry, including the different types of businesses offered, operational and functional departments, and the contribution of the industry to the local, national, and international economies. It also explores the use of licensing and franchising agreements and analyzes the impact of skill gaps on hospitality businesses.

THE
CONTEMPORARY
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Different types of business offered in hospitality industry with diverse products and services..3
Operational and functional department of hospitality business...................................................4
Contribution of hospitality industry to local, national and international economies...................6
Interrelationship of functional and operational unit....................................................................7
Use of licensing and franchising agreements that influence global development of hospitality
industry........................................................................................................................................7
Analyse that how licensing, franchising and global growth contribute to economic worth........8
Investigation of different operational roles in hospitality industry.............................................8
Examination of skills required for role in hospitality industry and also discusses current skill
shortages......................................................................................................................................9
Reviewing skill gaps in hospitality industry with related to different operational roles...........10
Analyse the impact of skill gaps on hospitality businesses and also provide valid solution for
addressing skills gaps................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
Books & Journals:......................................................................................................................12

INTRODUCTION
Hospitality industry is comes under within the service industry which include food and
drink services, lodging, theme parks, travel and tourism, event planning, etc. It includes
businesses such as tourism agencies, hotels, bars and restaurants (Shabani and Munir, 2020). The
main objective of hospitality industry is to provide enjoyable and best experience to the
customers. In now-a-days, it is identified that the business of hospitality industry is increasing at
a fast rate as people get aware about services of hospitality industry. Hospitality industry has
many operational and functional departments which are interrelated to each other in order to
achieve the aim. In this context, Hilton Hotel is undertaken to show the contemporary of
hospitality industry. Hilton hotel has worldwide operations but it is an American multinational
company that franchises and manages a broad portfolio of resorts and hotels. It is founded in
1919 by Conrad Hilton. They provide many types of services to the customers who include
leisure travels and business travels. This report will be critically analysed the products and
services offered by hospitality industry. It also covers interrelationship of operational and
functional department. In addition to this, it will analyse the contribution of hospitality industry
in economy with analysing the skills gaps.
MAIN BODY
Different types of business offered in hospitality industry with diverse products and services
It is identified that hospitality industries one of the biggest industries which contribute
immensely in the global economy. It connects many different types of businesses. The reason
behind rapid growth of hospitality industry is increasing in consumer purchasing power and
using of digital technology by consumers and businesses (Poulston, 2019). Hospitality industry
has different types of businesses as they offer diverse products and services. It divided into 4
categories that are food and beverages, entertainment, travel and tourism and accommodation. It
is well described in the below point:
Accommodation

Accommodation is referred to lodging which comprises a different types facilities and
hotels in order to stay overnight while people are in travelling. They need place for staying in
night. In this case, Hilton Hotel is one of the most luxurious and preferable accommodation
which include many facilities (Henseler, Müller and Schuberth, 2018). According to the World
tourism organisation, it is identified that 36 million people visited UK in 2019. But it get affected
due to COVID-19 pandemic situation. It include spa hotels, resorts, luxury hotel, boutique Hotel,
bed and breakfast are the important players in this industry.
Food and beverages
Food and beverages is playing a significant role in the hospitality industry as it is one of
the largest sectors. Hilton Hotel provides food and beverages also with all types of food which
include fast casual, casual dining, fine dining and fast food. Hilton Hotel also provides restaurant
services to the customers.
Travel and tourism
Travel and tourism is becoming one of the fastest growing sectors in UK. It does not limit
to two trains, cruise ship, tour operators and airlines. It is identified that people spent too much
on travelling purpose.
Entertainment
In hospitality industry entertainment plays a significant part of travelling in now-a-days.
It includes theme parks, zoos, museums, marinas, theatres, etc. It becomes very important in the
hospitality industry. Some important example of entertainment is Disneyland, British Museums,
Walt Disney World Resort, etc.
Operational and functional department of hospitality business
Hospitality industry has two important departments that are operational and functional
which includes separate types of services (Mulet-Forteza and et. al., 2019). It can be understand
with the help of Hilton Hotel operational and functional department which are explained below:
Operational department

Operational department is very necessary for Hilton Hotel as it helps in achieving the the
company's goals and objective. Operational department is concerned with four important services
that explained below:
Housekeeping
This service is related to the cleanliness and safety hydrogens which gives a direct impact
on the guest. Hilton Hotel make sure that every room should be properly cleaned and in present
time they also focusing on sanitization.
Food production
Hilton Hotel provides restaurant service in which kitchen is the most important place as
they produce food. It include cooks, chef and kitchen manager who have authority to cook food
for the guest with proper safety and hygiene. Hilton Hotel is focusing on quality of food which
offered to their guest.
Front office
Front office is one of the most important departments as it handles with all guests. They
directly interact with customers in order to provide relevant information which customers want.
They also resolve queries of customers.
Food and beverage services
This is one of the important department in which Hilton Hotel take care about drinking
needs of customers. It makes the impression on customers which becomes very beneficial for
increasing the business practices of Hotel.
Functional department
Functional department is concerned with coordination between all departments so that
Hilton Hotel can achieve their goals and objectives (Shulga and Busser, 2019). Functional
department has 4 important departments which should be coordinated with each other in order to
achievement of target.
Human resource department

Human resource department is dealing with human resource of an organisation. Hilton
Hotel believes that human resources very important for their success and growth as they are the
person which performed their job in order to satisfy customers needs and wants. That's why they
always focusing on effective recruitment and selection process which helps to fill vacancy with
suitable candidate.
Marketing department
Marketing department is focusing on promotion of their brand in order increase the
market share (Qiu and et. al., 2019). With the help of promoting services of Hilton Hotel, their
potential buyers get attracted towards their services which increase revenues.
Account and finance department
This department is focusing on financial position of Hilton Hotel bi formulating budgets
and also maintain the quality of their services. They use money in the best possible way so that
they maintained their financial position.
Purchase department
Purchase department is also known as procurement department which take care of raw
materials they use in the process of providing services at competitive prices.
Contribution of hospitality industry to local, national and international economies
It is identified that that hospitality industry gives a great contribution to local, National
and international economy (Fernandes, Alturas and Laureano, 2018). It can be better understand
with the help of following points:
 Hospitality industry provides employment opportunity to the people of nation which
increases their standard of living as well as disposable income that contribute in the GDP
of nation.
 It also helps to increasing the purchasing power of people.
 In UK, it is identified hospitality industry has contributed approximately 15 9.3 million
pound in Gross Value Added.
 It is also identified that it provides approximately 3% in the total output of UK.

 According to the reports of hospitality industry they have approximate 7.6 trillion dollar
as global turnover.
Interrelationship of functional and operational unit
Functional and operational department both are very important for hospitality industry.
That means Hilton Hotel need to co-ordinate between both departments as they can achieve their
objectives only when both departments work effectively (van Bijsterveldt, 2020). There are some
points which clarify that how functional and operational department interrelated with each other.
 Human resource department of functional department recruit and select candidate not
only for the functional department but also for operational department (Fernandes
Sampaio, Hernández Mogollón and de Ascensão Gouveia Rodrigues, 2020). So that's
why Hilton Hotel needs to take care about their relationships.
 Marketing department of Hilton Hotel provides relevant information about the guest and
their preferences to the front of the department which is the part of operational
department.
 Purchase department is one of the important departments for operational unit because it
provides raw materials to the food and beverages department of Hilton Hotel. So in this
way operational and functional department are interrelated with each other.
Use of licensing and franchising agreements that influence global development of hospitality
industry
In today's scenario, business environment get more competitive and that's why Hilton
Hotel expand their businesses in all over the world (Walters and et. al., 2021). For expansion of
their business, Hilton Hotel is using licensing and franchising agreements which is very helpful
for global development of hospitality industry.
Licensing
Licensing is defined as an agreement in which hospitality industry required a detailed
licensing as it has enforced by many laws which are related to public health and safety concerns.
Hilton Hotel has licence of running their restaurants, bars and hotels in order to operate their
business practices.
Franchising

Franchising is one of the ways that Hilton Hotel used in order to expand their business
practices into new geographical areas and markets. This is very beneficial for hospitality industry
as it assist in development of global economy. It is identified that international franchising is one
of the best way for existing company in order to grow their business practices.
Analyse that how licensing, franchising and global growth contribute to economic worth
Licensing and franchising is very necessary for the global growth after the discussion that
how hospitality industry use both tools. It is analysed that licensing and franchising plays a very
important role in order to grow the economic growth rate. It's just not limited to local and
national but also very helpful for global economic growth rate (Baharin and Hanafi, 2018). It
provides job opportunities to the person which helps in raising their standard of living. It also
increases the purchasing power of consumer. In this way, it gives a great contribution to the
economic worth.
Investigation of different operational roles in hospitality industry
There are number of different operational roles in hospitality industry which are well
explained in below points:
Housekeeping
Housekeeping services is concerned with cleanliness of rooms and beds because guest are
attracted only by neat and clean place. That’s why Hilton Hotel is focusing on cleanliness and
hygiene safety.
Front desk services
Front desk services are provided by front office executive which solves the queries of
customers. They are very important for Hilton Hotel as they provide relevant information to the
customers.
Kitchen staff
Kitchen staff is dealing with the procurement and making of food as Hilton Hotel also
provide restaurant services. That’s why they need a quality staff of their kitchen.
Marketing

Marketing is very necessary for organisation growth and success as it is identified that
marketing manager of Hilton Hotel promote their services in order to recognise the brand (De
Guzman and et. al., 2020). For the marketing department, Hilton Hotel appointed best marketing
person.
Examination of skills required for role in hospitality industry and also discusses current skill
shortages
It is identified that Hilton Hotel required skills in order to achieve their goals and
objectives. This report is discussed important skills as they play an important role in hospitality
industry. Some important skills are mentioned below:
Customer service skills
It is very necessary for Hilton Hotel that they should focus on customer services skills in
their executives as they wants to provide best customer experience which can be accomplished
only when they have expert customer service skills.
Networking skills
It is the key skill which is very necessary in hospitality industry as it is important to learn
in the employees of Hilton hotel in order to build a loyal client.
Language awareness
In hospitality industry, company has to attend many types of clients as they come from
different nations so Hilton Hotel’s executives required those executives which are proficient in
languages.
Apart from above discussion, it is analysed that these skills are very important to possess
in their executives. In current scenario, it is identified that there are some skills which are
currently shortage in the hospitality industry.
 It is identified that there is the chronic shortages of waiters/waitress, chefs, cooks, etc. in
the hospitality industry. This is due to lack of labour supply in market of hospitality
industry. It is analysed from the data of UK that out of 5 hospitality business 1 company
is facing an issues harder than last year.

 There are also some important reasons of facing shortage of skills such as political
landscape, low paid jobs, boom in restaurant openings, anti social hours of works, etc.
Reviewing skill gaps in hospitality industry with related to different operational roles
Skill gaps is identified that it increases because day by day the consumers’ demand is
increasing which gives a great impact on skill requirements of hospitality industry. It is very
important for a hospitality industry that they should identify and analysed the area that lacks in
skill. It is very necessary to find out the skill gaps so that they can take an immediate action in
order to reduce the skill gaps (Aizan, Ahmad and Abd Rahman). Hilton Hotel need to reviewing
their skill gaps in order to reduce them so that they can achieve their goals and objectives. There
are many different operational roles that operate in the hospitality industry. Hilton Hotel finds
out that every operational role face some skill gaps such as in the procurement department hotel
identified that there is a shortage of good chefs which are experts in cooking.
Analyse the impact of skill gaps on hospitality businesses and also provide valid solution for
addressing skills gaps
In the discussion of skill gaps, it is analysed that day by day the skill gaps is rising due to
lack of labour supply, increasing in the consumer’s demand, increase in dynamics of business
environment, etc. It is necessary for hospitality industry that they should focus on the solutions in
order to address skill gaps. This will lead to the success and growth of hospitality industry. There
are some valid solutions which are mentioned below that helps hospitality industry to reduce
skill gaps which are mentioned below:
 It is suggested to the hospitality industry that they should focus on providing regular
training to their employees so that they can reduce the skill gaps.
 In today’s business environment, IT skills are very necessary in the employees of
hospitality industry. So that’s why it is suggested to the hospitality industry that they
need to give formal training programs that are related to the IT developers so that their
employees get highly skilled.
 Day by day the changes are analysing by the hospitality industry so that’s why it is very
necessary for hospitality industry that they should increase the knowledge of latest trends
in order to achieve target market.

CONCLUSION
It can be concluded from the above discussion that hospitality industry becomes one of
the most important industry which gives a great contribution in the economy. It is the fastest
growing industry that has many operational and functional. This report is critically analyse the
interrelationship between operational in functional department in order to achieve the goal of
hospitality industry. It also covers licensing and franchising that used by hospitality industry
which plays an important role in global economy. In addition to this, it also covers some
important skills which necessary in order to perform operational and functional department. It
analyse the skill gap and provide solutions to fill that gap.

REFERENCES
Books & Journals:
Aizan, M. A., Ahmad, R. and Abd Rahman, R., Is Career In The Hospitality Industry Suitable
For The Muslim Student In Community College?.
Baharin, N. L. and Hanafi, W. N. W., 2018. Effects of Talent Management on Employee
Retention: A Case Study of Hospitality Industry. Global Business & Management
Research, 10(3).
De Guzman, A., and et. al., 2020. Understanding Filipino hospitality interns’ expectations and
frustrations. Anatolia, 31(3), pp.479-493.
Fernandes Sampaio, C. A., Hernández Mogollón, J. M. and de Ascensão Gouveia Rodrigues,
R.J., 2020. The relationship between market orientation, customer loyalty and business
performance: A sample from the Western Europe hotel industry. Tourism and Hospitality
Research, 20(2), pp.131-143.
Fernandes, A. L., Alturas, B. A. B. and Laureano, R. M. S., 2018. Validation of the Hospitality
Culture Scale in the context of hotel industry. Tourism & Management Studies, 14(1),
pp.43-52.
Henseler, J., Müller, T. and Schuberth, F., 2018. New guidelines for the use of PLS path
modeling in hospitality, travel, and tourism research. In Applying partial least squares in
tourism and hospitality research. Emerald Publishing Limited.
Mulet-Forteza, C., and et. al., 2019. A bibliometric research in the tourism, leisure and
hospitality fields. Journal of Business Research, 101, pp.819-827.
Poulston, J., 2019. Pleasure and Hospitality in New Zealand the Roles of Alcohol Sex and
Ervice. Current Politics and Economics of South, Southeastern, and Central
Asia, 28(2/3), pp.231-255.
Qiu, S., and et. al., 2019. The effects of authentic leadership on trust in leaders, organizational
citizenship behavior, and service quality in the Chinese hospitality industry. Journal of
Hospitality and Tourism Management, 40, pp.77-87.
Shabani, N. and Munir, A., 2020, July. A Review of Cyber Security Issues in Hospitality
Industry. In Science and Information Conference (pp. 482-493). Springer, Cham.
Shulga, L. V. and Busser, J. A., 2019. Talent management meta review: a validity network
schema approach. International Journal of Contemporary Hospitality Management.
van Bijsterveldt, E., 2020. Gender equality in the hospitality industry: How do female workers
see their career opportunities in the hospitality industry, and for what reason?.
Walters, G., and et. al., 2021. Commercial hospitality in tourism: A global comparison of what
culturally matters. International Journal of Hospitality Management, 95, p.102939.