Contemporary Hospitality Industry

This document provides an overview of the types of businesses in the hospitality industry, including travel and tourism, lodging, restaurants, pubs/clubs/bars, and events. It also discusses the operational and functional departments within Four Seasons London, the contribution of the industry to the economy, and the necessary skills for different roles. The document highlights the skills gap in the sector and provides suggestions for addressing it.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Investigate various types of businesses in hospitality industry........................................1
P2. Range of operational and functional departments within Four Seasons London.............2
P3. Contribution of international, national and local economies...........................................3
M1. Interrelationships of operational and functional units within Four Seasons London.....3
M2. Franchising and licensing agreements has influenced development of hospitality sector4
D1. Global growth, franchising & licensing have led to economic worth of hospitality sector. 4
P4. Different operational roles within hospitality sector........................................................4
P5. Skills necessary for roles in hospitality sector and deficiency of current skills...............5
M3. Review skills gaps in hospitality sector associated with various operational roles........6
D2. Impact exerted by skills gap over hospitality & suggestions for addressing gap............6
P6. PESTLE analysis of Four Seasons Hotel London............................................................6
M4. Impacts of external factors on development of organisations in hospitality industry....8
D3. External factors impact on current and potential trends and developments in hospitality
industry...................................................................................................................................8
P7. SWOT analysis of Four Seasons Hotel London...............................................................8
P8. Comprehensibility of the current trends within the confines of hospitality sector..........9
M5. Evaluate the ability of Four Seasons Hotel London to develop products and services to
meet current trends...............................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality is one of the most rapidly growing sectors across the globe which
encompasses a number of activities such as boarding, lodging, recreation, sightseeing,
transportation, accommodation, restaurant, pub, club, bar etc. This industry offers products and
services of high quality that hold the potential and capability to cater to the needs as well as
preferences of clients. In the hyper competitive era, this is an industry which seeks to apply
customer centred approach towards operations so as to attain positive results. The entailment of
maximum customer satisfaction is the primary focus of hospitality organisations.
The present project is based upon Four Seasons London which is a luxury hospitality
organisation engaged within hotel industry. It offers an array of services to customers such as
conferencing and banqueting, lodging, boarding, accommodation and many more. It is located at
the heart of Park Lane London. The following assignment constitutes overview of types of
businesses along with functional and operational units pertaining to hospitality sector. Further, it
consists of operational roles as well as skills that are prerequisite to implement them. At last, the
current and potential trends impacting over hospitality sector are covered.
P1. Investigate various types of businesses in hospitality industry
Hospitality is a wide sector which aims at meeting the needs and preferences of
customers by providing them with high quality offerings. These services seek to ensure the
comfort as well as convenience of clients. This sector comprises of several types of businesses to
ensure that customers derive high level of satisfaction. These are briefly explained as follows:-
Travel and tourism: Hospitality industry deals with providence of commutation as well
as transit facilities to clients. It includes modes of travelling such as flight, ship, road, train, on
foot etc. This is a type of business which provides boost to the overall economy of United
Kingdom by emphasizing upon provision of high quality services which can meet the leisure of
commercial demands of people. Thus, it can be said that travel and tourism is a significant part
of hospitality sector.
Lodging: The aspects pertaining to this business of hospitality industry include motels,
hotels, beds, breakfast and many more. In this relation, it can be analysed that such services are
short lived experience. The facilities are provided to customers as per their needs and
preferences. During the stay of clients within the premises of hospitality organisations, the main
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concern of management is upon stipulation of safety as well as security measures. With respect
to this, Four Seasons London also ensures that guests feel at home during their stay in the
premises. For this, the management provides high quality offerings to people which can meet
their ever growing demands.
Restaurant: This business pertaining to hospitality sector comes under Food & Beverage
industry, whereby the main aim is to satisfy the needs and demands of customers as per their
eating habits and preferences. The different forms of restaurants are acknowledged to be Quick
Service Restaurants, eateries, fast food joints, cafes etc. In relation to this, Four Seasons London
also has its own restaurant to cater to the food related demands put forward by guests.
Pubs / clubs / bars: This is yet another important part of hospitality. Hereby, the main
aim is to meet the entertainment needs of people so that they can feel relaxed and comfortable.
Hereby, customers visit to spend leisure time with peer, acquaintance or family members. This
business of hospitality seeks to offer a quality experience to guests which can ensure that
individuals get relieved of all the stress and worries of life to have a nice time partying with
known people. Four Seasons London also has Amaranto Bar which provides cocktails, wines and
light dining facility to customers (Dining. AMARANTO BAR, 2019).
Memberships and event: Events such as conferences, weddings, meetings and banquets
have become a crucial part of hospitality sector with the passage of time. Along with this, a
number of music concerts and other entertainment events are organised within some hospitality
organisations to provide quality experience to customers. In this relation, Four Seasons London
has a large event space of 796 m2 to conduct a variety of events and conferences (Four Seasons
Hotel London at Park Lane. MEETINGS & EVENTS, 2019). The event and meeting team of this
5 star hotel takes into account each detail in order to ensure peace of mind as well as absolute
pleasure for customers. This provides aid to the corporation in appealing to potential buyers in an
effective manner and retaining them for long term.
P2. Range of operational and functional departments within Four Seasons London
Four Seasons London is comprised of 2 types of business units, namely, front house and
back house. These incorporate various types of functional as well as operational departments,
providing assistance to the respective hotel in effectively conducting its business operations. The
2 business units and their departments are discussed as follows:-
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Front house: This comprises of operational sections like front office, reservation and
housekeeping in a hotel. Within Four Seasons Hotel London, this unit deals with customers on
everyday basis and for this it is crucial to possess enhanced communication skills by which they
can have strong as well as effectual power for providing customers with unique experience.
Apart from this, they include functional units like sales and marketing which are involved within
catering sales. The Food & Beverage unit of Four Seasons Hotel London belongs top this unit
and comprises of conferencing, banqueting, room services, lounges, pubs, bars and restaurants.
Back house: It comprises of sections like accounting, HRM and engineering. HR
department or unit will focus on recruiting skilled, educated, competent and enlightened
individual for growth as well as welfare of organisation. It will aid firm to ensure that tasks are
implemented in effectual manner with respect to needs of Four Seasons Hotel London.
Furthermore, HR is responsible for ensuring security as well as safety of personnel including
employees and customers. They are responsible for making sure that food & beverages which are
furnished to customers within hotel are healthy, free from contamination and hygienic. Apart
from this, engineering unit is accountable for maintaining infrastructural artefact of organisation.
Their aim will be on enhancing capital and needs associated with ground maintenance.
Accounting department will work for ascertaining revenues and gains which are attained by
entity.
P3. Contribution of international, national and local economies
Hospitality sector is an evolving sector which creates several employment opportunities
for local individuals. This facilitates the growth of local and national economies. It is regarded as
the 5th largest sector of UK which provides job opportunity to a total of 2.4 million individuals.
This sector has generated huge revenues equivalent to £90billion (Economic Contribution of UK
hospitality industry, 2019). Hospitality sector has significantly capitalised on the trend of
globalisation to give a boost to the international economy. Further, franchising and licensing also
make their contribution for appraisal and establishment of hospitality organisation within a
specific country.
M1. Interrelationships of operational and functional units within Four Seasons London
Operational and functional departments are regarded as the foundation upon which the
operations of a hospitality organisation are dependent. By capitalising on these, a firm can cater
to the needs as well as preferences of customers and gain success at market place. In this
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relation, Four Seasons London leverages the interrelationship between both of them to attain
growth and success in international market place.
M2. Franchising and licensing agreements has influenced development of hospitality sector
Globalisation is a trend that every hospitality organisation looks upon to gain growth as
well as success in market place. To pursue this, hospitality industry leverages franchising as well
as licensing agreements as these provide assistance to a corporation in expanding its business
operations in a number of countries and thereby enhance its existing customer base. This has
given a boost to the overall state of hospitality sector across the globe.
D1. Global growth, franchising & licensing have led to economic worth of hospitality sector
With the evolution of time, hospitality sector has shown effective growth and
development. In addition to this, franchising and licensing models are being extensively used
within the confines of this sector to facilitate robust development of different types of businesses
pertaining to this corporate area. This has ultimately led to increment in the contribution of this
industry to Global GDP.
P4. Different operational roles within hospitality sector
There are numerous sectors that operate their functions with a motive of generating
profitability, employment and other growth opportunities in order to ensure. In addition to this,
there are different types of functions within hospitality sector with the help of which effectively
satisfaction to customer can be effectively provided. In order to effectively manage these roles
organisations within this sector take advantage of number of strategies as to further manage
needs and demands of customers in well defined manner. There are numerous forms of
operational role that are been undertaken by Four Seasons Hotel London:
Housekeeping:
The role of this unit within Four Seasons Hotel is to effectively maintain and manage
organisational site as well as surroundings as to ensure cleanliness, comfortableness and
feasibility. It has been further evaluated that housekeeping department in four season London aid
organisation to gain loyalty from customers in best effective manner. In addition to this,
housekeeping department also benefit entity to manage facilitates related to fitness centre,
conference, spa and banquet halls. Further it has been determined that this department also
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benefit in ensuring uniform cleanliness of workers within Hotel that further benefit them to serve
customers at best.
Sales and Marketing:
Within corporate world each and every business organisation effectively conducts their
operations in an effective manner. Sales and marketing department effectively aid organisation to
ensure more success by managing overall sales of organisation. Within Four Seasons London, it
has been identified that manager undertake different types of strategies, marketing schemes and
programmes as to acquire more market share. In addition to this, with the help of sales and
marketing activities this department ensure more competitive edge within marketplace. Further it
has been identified that, this department within Four Seasons London engage in continuous use
of attractive promotional tools as well as techniques in order to simultaneously increase overall
sales of organisation.
Front desk facilities:
Front desk department within Four Seasons Hotel London, mainly engage in regular
interaction with guest. In this manager is required to undertake the responsibilities related to
bookings. All these personnel effectively perform their roles in order to resolve complaint of
customers in best effective manner while making communication with them. Thus, it has been
identified that front desk department within Four Season aid organisation to create long lasting
experience on client in best effective manner.
P5. Skills necessary for roles in hospitality sector and deficiency of current skills
In hospitality sector, there are number of individuals from diverse national background.
Thus, it is essential for hospitality industry to effectively undertake large number of skills in
order to efficiently manage their roles in well effective manner. In context with this, skills that
are duly required by Four Seasons Hotel London are being defined below:-
Flexibility skills:
Nowadays hospitality sector receive high flow of guest, thus it is essential for them to
manage by undertaking adaptable culture. Four Season Hotel London is required to formulate
strategies to offer their products and services as per according to demand of guest. It is essential
for organisation to undertake as to ensure long term sustainability from their guest:
Language skills:
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Hospitality sector deals with people from diverse locations as well as destinations on a
daily basis. Thus, it is essential for Four Seasons Hotel London to equip their staff with different
types of languages as to satisfy guest in best effective manner. It is one of the most important
skills within hospitality as with the help of this company can become effectively able to serve
their customers in well defined manner.
Communication skills:
It is one of the most effective and essential skill with the due of which organization can
effectively able to fulfill their organizational goals and objectives in best effective manner. In
addition to this, it has been determined that communication skills effectively benefit Four Season
Staff to serve their customers at best. It further leads to ensuring long term loyalty from their
customers in a well defined manner.
M3. Review skills gaps in hospitality sector associated with various operational roles
With the passage of time, the need to upgrade the skills of professionals belonging to
hospitality sector has come up and entities need to take this into account. In this relation, the
most important skills for the different operational roles within hospitality sector are
acknowledged to be flexibility, communication and linguistic.
D2. Impact exerted by skills gap over hospitality & suggestions for addressing gap
The skill gap noticed within the confines of hospitality sector tend to hinder the
organisations from fulfilling the needs and demands of customers in stipulated course of time.
This results in non accomplishment of corporate goals. Thus, there is a need for hospitality
companies to provide training to employees so that the skill gap of personnel can be effectively
met and they can provide assistance to organisation in fulfilling the needs and demands of
customers.
P6. PESTLE analysis of Four Seasons Hotel London
PESTLE analysis is considered as a framework which is generally adopted by a company
in order to gather information about the macro environment that impact on their business
operations and functions. This will include several factors that help management in developing
effective decision according to current market situation. Explanation of all factors of PESTLE in
respect of Four Seasons London is mentioned below:-
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Political factor: This factor will include aspect like government policies, corruption,
foreign trade, political stability and so on. The political situation of United Kingdom is stable
which is consider as huge opportunity for Four Seasons London because due to this they can
operate as well as expand their business effectively. But it also has limitation related to terrorist,
unstable political situation and so on which directly affect business and market.
Economical factor: It will consider aspects like economic growth, exchange rate,
interest rate, unemployment rate, employment ratio etc. In respect of United Kingdom, the nation
has strong economic background which is beneficial for Four Seasons London because they can
conduct operations effectively. Economic situation also help respective firm in sustaining at
potential marketplace. But sector in which Four Seasons London is operating get highly affected
when any change occur related to economy such as inflation, fluctuations, recession and so on.
Social factor: It will include factors like lifestyle, population, growth rate, career
attitude, cultural barriers and so on. In respect of Four Seasons London, when change occur in
society lifestyles and trends they get opportunities to grow their business by fulfilling
requirement. Along with this limitation incurred in this, is related to situation when competitive
company adopt new trend before Four Seasons London because it will impact on respective hotel
sales as well as profitability ratio.
Technological factor: Respective factor will include aspects like technological
awareness, technological change, level of innovation, research and development, technological
incentives and so on. It will be opportunities for Four Seasons London to adopt new and advance
technology at their hotel so that they able to attract more and more customers as well as it will
also help them in conducting work more effectively. The limitation associated with this is
financial resource as well as hotel need to provide training to staff whenever they adopt new
technology.
Environmental factor: It will include aspect like climate change, environmental rules
and regulation, weather, climate and so on. In respect of Four Seasons London they must adopt
new technology in order to protect environment such as use solar energy, through this they able
to attract more and more customers. But it has risk associated with this such as it is not possible
for hotel to adopt each and every environmental legislation which are developed by government
which lead to legal action.
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Legal factor: This will include aspects like discrimination law, employment law,
copyright and patent law and so on. It is opportunity for Four Seasons London to adopt legal
factors so that they can avoid unethical as well as illegal practices. But it has limitation like it is
not possible for hotels to adopt and implement each and every legal practice which develops
chance of illegal practice and legal action.
M4. Impacts of external factors on development of organisations in hospitality industry
The external factors of a nation exert a significant influence over the companies operating
within the hospitality sector. The developed political state of UK, strong economic conditions of
the nation, changing consumer lifestyles, emergence of new technological trends, CSR initiatives
and assurance of compliance with laws tend to foster development of entities pertaining to
hospitality sector.
D3. External factors impact on current and potential trends and developments in hospitality
industry
In response to technological advancements, hospitality sector has leveraged technologies
such as AI, automation, cognitive computing etc. In addition to this, social changes tend to
develop the concerned industry by facilitating organisations to adapt to the emerging culture of
country and people. Similarly, there are many other factors which have facilitated companies to
capitalise upon the trends and result in overall development of hospitality sector.
P7. SWOT analysis of Four Seasons Hotel London
SWOT is termed as a framework that can be undertaken by organisation so as to
effectively identify their internal capabilities in order to operate their functions in an effectual
manner. It further help organisation to effectively conduct their operations. In addition to this,
with the help of SWOT analysis organisation can effectively able identify strength and
weaknesses with the help of which they can further frame strategies to overcome them.
Mentioned below SWOT analysis of Four Seasons Hotel London is being defined:
Strengths
Strong domestic presence: Four Seasons Hotel London currently hold best effective
market presence in UK industry. In addition to this, with the help of strong domestic presence
that further provides aid to them to gain more customer base.
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Emphasis upon innovation: Major focus of organisation is to effectively influence
customer interest by offering them services with the help of innovation.
Weaknesses
Excessive focus on expansion: Four Seasons Hotel London is mainly aimed towards
expanding their business operations at large scale. This leads organisation towards facing
number of complexities in maintaining higher quality standards.
Hotel controversies: It has been identified that Four Seasons Hotel London is currently
facing number of problems and controversies that further affect their global goodwill. This is
mainly due to lack of employee safety and customers.
Focus on family: Four Seasons Hotel London is mainly focused towards families as are
not looking towards to make any alteration in this form of working pattern.
Opportunities
Changing consumer behavioural pattern: It has been identified that there is continuous
change in needs and demand of customers. Thus, it is essential for Four Seasons London to have
effective understanding of all these factors according to latest trend and demand of customers as
to make significant increase in overall sales performance of organisation.
Enter potential marketplaces: The respective hotel can make entrance into any market
segment as to increase their customer base. Four Seasons Hotel London can leverage manpower
and resources in order to gain success in international marketplace.
Threats
Huge rivalry: Hospitality industry is one of the fastest and growing industries across the
global periphery. This lead towards more stiff competition that create number of threat
situations. Four Season Hotel London have number of competitors such as Marriott, Hilton,
Holiday Inn etc.
Recession: Recession has turned out to be one of the biggest threats for all the industries
that are functioning within marketplace. In relation to hospitality industry, it has been identified
that recession may lead organisation towards auction of certain properties that are not further
offering profitability for organisation.
P8. Comprehensibility of the current trends within the confines of hospitality sector
There a number of current as well as potential trends which pertain to hospitality sector
and need to be taken into account by organisations functioning within its’ domain. In this
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relation, the trends which are duly considered and applied by Four Seasons Hotel London are
discussed as follows:-
 Globalisation is one of the most apparent trends that have changed the phase of
hospitality sector. It has enabled organisations such as Four Seasons Hotel London to
share their labour, resources and technologies with other nations and businesses to ensure
the growth of both.
 Yet another trend that is emerging with the passage of time owes to the growing concerns
related to safety and security of guests. To deal with this, Four Seasons Hotel London has
installed CCTV cameras and maintained safety guards within its premises. Further, it has
also installed emergency equipments such as fire extinguishers and emergency telephones
at each floor.
 Diversity is another prominent trend that has gained popularity with the passage of time.
This provides aid to Four Seasons Hotel London in leveraging the thoughts and opinions
of diverse set of individuals working within the premises.
M5. Evaluate the ability of Four Seasons Hotel London to develop products and services to meet
current trends
Four Seasons Hotel London realises the significance of adapting the operations of hotel
as per the changing business environment. It capitalises upon the latest and potential trends
prevailing in market such as globalisation, CCTV cameras, surveillance, diversity to attain
growth and development. This provides aid to the respective hotel in developing offerings which
can fulfil customer demands by remaining aligned with key market patterns.
CONCLUSION
On the basis of above discussion, it can be said that hospitality is a constantly evolving
sector comprising of several businesses such as lodging, travel and tourism, events and many
more. Further, it has been analysed that this sector accelerates the growth of economy of local,
national and global regions. In addition to this, it has been acknowledged that a hospitality entity
comprises of functional and operational departments which work in correlation to ensure
provision of ease and comfort for customers. It is determined that there are several skills which
are considered prerequisite to carry out role within the concerned sector. Additionally, it is
inferred that the entity faces threat of extensive level of rivalry prevailing within the confines of
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hospitality industry. PESTLE analysis illustrates that macro environment exerts positive as well
as adverse influence that needs to be taken into account by an entity operating in hospitality
sector to sustain in market for long run.
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Online
Economic Contribution of UK hospitality industry. 2019. [Online]. Available Through:
<https://www.oxfordeconomics.com/my-oxford/projects/296333>.
Four Seasons Hotel London at Park Lane. MEETINGS & EVENTS. 2019. [Online]. Available
Through:<https://www.fourseasons.com/london/meetings-and-events/>.
Dining. AMARANTO BAR. 2019. [Online]. Available Through:
<https://www.fourseasons.com/london/meetings-and-events/>.
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