Contemporary Hospitality Industry

This study material explores the different types of products and services offered by the hospitality sector, the range of operational and functional departments within IHG, and the contribution of the hospitality industry to the economy. It also discusses franchising and licensing developments, evaluates different operational roles, and examines the skills required for roles within the hospitality industry.

Contemporary
hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
TASK...............................................................................................................................................3
Different type of products and services offered by hospitality sector.........................................3
Range of operational and functional department within IHG.....................................................5
Contribution of the hospitality industry to local, national and international economies.............6
Interrelationship of operational and functional unit....................................................................6
Discuss the use of franchising and licensing developments........................................................7
Evaluate range of different operational roles...............................................................................8
Examine the skills required for roles within the hospitality industry and skills shortage in
present..........................................................................................................................................9
Review the skills gaps within the hospitality industry................................................................9
Analyse the impact that skills gaps have on hospitality businesses..........................................10
CONCLUSION..............................................................................................................................10
References......................................................................................................................................11
Books and journals:...................................................................................................................11

INTRODUCTION
The report aims to provide various area and portion of hospitality industry. The industry playing
a vital role in fulfilling customer’s requirement and making contribution in economy and Nation.
Hospitality Services include accommodation, food and travelling, resorts, lodging and many
more. This report is going to evaluate many departments and services offered by hospitality
industry. There is discussion about Intercontinental hotel group n Resort is a multinational
company which has a lot of divisions and hotels Resorts theme park at worldwide level. The
hotel group was formed in 2003 first in England, UK (Daskin, and Tezer, 2012). The report will
present various range of operational and functional departments, contribution of hospitality
industry and their interrelations. Also there will be a discussion about the franchising and
licensing which is important to enable growth and expansion at foreign level. Also, there will be
an examination of skills and roles performed within the hospitality industry. Therefore, it is
necessary to fill this gap and a sure Quality Services within the sector.
MAIN BODY
TASK
Different type of products and services offered by hospitality sector
The hospitality industry is known for wide variety of services as per the customer requirement .
the services are described below:
Accommodation: it is one of the most necessary and must have services in the hospitality sector.
Hotels earn their profits by providing accommodations and stay for local as well as foreign
tourists. These services are also provided in varieties and options for customer convenience.
There are basically three kinds of accommodation facilities which include lodging suits and
resorts.
 Lodging: under this accommodation service, customers are provided with a special
facility of lodging facility in which pickup and drop facilities are provided. Mainly

customers who travel from different place are undertaking lodging facility within the
hotel rooms.
 Suits: the hotels differentiated their rooms as per the facilities, price and size. Suit come
under the luxurious hotel rooms which have extra facilities and quite unique from the
others Hotel rooms. The services fulfill the requirement of luxury stay of customers.
 Resorts: When customers want fun and entertainment, Resort are the most popular way
to provide stay as well and extra curriculum activities to perform. These resorts are
mainly located in poolside or coastal areas.
Food and dining: hospitality industry mainly known for providing good food facilities to their
customers. It fulfills all the requirement of the tourist who came through different places and
wants every necessity of a day under one roof. Food and dining is the most important service
customer's retention is based on (Gursoy, Rahman, and Swanger, 2012). These facilities are
customized as per client requirement on special occasions. As hospitality sector scattered at a
wide area, there are different kinds of food and dining facility full staff these include restaurant,
fast food chains, takeaway, bars and pubs Casino resorts and many more. All these food services
in hospitality sector mainly aims to attract customers to providing delicious and healthy food
which satisfy their hunger. Whether it is restaurant or hotels , they need to put focus on culture
and need of customer while serving food. Intercontinental hotel group provide food services
under their Hotel premises for the tourist who stays in there.
Travel and tourism: the growth of hospitality industry is integrated with travel and tourism.
The facilities of airlines, ships and Dock, cruise and any other mode of travel are come under the
hospitality industry. They provide all the facilities which are required for a journey by moving
one place to another.
Fun and entertainment: performing hospitality operations means that providing customers
money worth services which they are looking for. As, it includes Quality Stay, greeting and
arrangements, and unique facilities. Fun and entertainment are also part of Hospitality Services
which include various events, Sports, games and club. These activities are mainly known for fun
purpose which make customer satisfy and urge to come back. Intercontinental hotel are vitally
contributing in launching event, sports and recreational also Club and bar are their main essential
elements. They have separate departments and places for clubs, bars which are opened at 24/7.

Range of operational and functional department within IHG
Operational departments: This department is known for all the operations activities related to
customer services , fulfilling requirements, in room facilities and other services. The operation
activities are customer centric which widely focus on giving satisfactory stay food, information
and safe checkout. In context of Intercontinental hotel group the functions of operational
department are discussed below:
Housekeeping: employees working in this department are working to provide healthy and clean
room environment (Langvinienė, and Daunoravičiūtė, 2015). It is the initial demand of every
customer to staying clean unhygienic rooms. Intercontinental Hotel groups provide fresh and
sanitized room service.
Food production: at the department, the meals are prepared as per the customer's order.
In IHG, the departments is entitled to serve food with great dining and prepared with proper
hygiene. Waiters, chefs, helpers are all working in this department.
Front office: this department is also work for hotels operations. All the clients or guest
first attends through front desk manager who has responsibility to guide, assist and record all
customer requirements. It is the initial experience that customers undertake in hotel premises
which decides their stay or undertaking service. If the department does not work properly, they
may lose brand name and customer retention.
Functional department: this department is known for performing internal activities of hotel
group. These include all the management, human resource, marketing and other functions which
are vital for hotel profitability and brand name.
Marketing: the department’s works to market hotel services at number of customers by
undertaking most effective tools and marketing techniques. Hotel IHG does their marketing
through social media and advertisement which aware customers about new facilities and offers.
Human resource department: this department is under control of HR manager of IHG who
looks towards staff welfare and recruit the best talent for hotel reputation and assured quality
service.

Accounting and financing: finance and records of data is necessary to check hotel performance
and profitability during a year. Hotel IHG maintains or the accounts and revel their annual
reports for legal purposes in government department.
Production department: the hotels mainly known for providing service. This department makes
sure about every service must be worth for customers and undertake effective materials, tools,
infrastructure to make the business competitive and profitable at the same time.
Contribution of the hospitality industry to local, national and international economies
Hospitality industry is widely contributing in the economy and Nation. Form the past years, there
has seen a rapid growth in hospitality sector in terms of net revenue, GDP and foreign direct
investment.
 It is the most significant industry into the whole business economy of world. As, it
contributed in the global GDP through 10.4% rise due to Rapid travel and tourism
attraction.
 The hospitality industry contributing in local economy by providing employment
opportunities as the hotel group undertaking services through many retail sectors like
dining and drink entertainment and events (Lupu, Tanase, and Nica, 2014).
 Also the industry provides investment in developing local communities and infrastructure
of economy. It has contributed around millions of job which shows 9.9 % of employment
rate.
 The industry has a wide contribution in national economy by developing countries
through advancement of Technologies, providing unique services and maintaining
sustainable flow of work. In UK, the GDP growth through hospitality sectors are approx
$59.3 billion.
Interrelationship of operational and functional unit
Operational and functional department are interrelated with each other. As they are basically
work to achieve a single goal of Hotel which is to provide effective customer service which
make customer retention and enable high profitability and band name of the hotel group.

Therefore, both are these functions work together in IHG as operations work requires planning
and system which are assigned and designed through functional department. They have the
authority to take decision for proper functioning.
Human resources linked to operational department: The employees are the only reason
behind achieving organizational goals and objectives. The HR department is liable in IHG as
mangers recruit most superficial employees and provide training by acknowledging them
towards hotels standards, work policies and vision. The capable employees work as a
housekeeper, chef and waiter to carry out operational activities properly. Therefore, both of these
departments are interconnected in IHG. Mangers provide immense support to employees
whenever they get stuck and take actions for their promotion and increment
Marketing linked to front desk department: Marketing is all about convincing customers,
promote organizational services into attractive manner. In IHG, front desk mangers is liable to
attend the guest at first place and solve their doubts so that, customers will make their stay with
hotel. Therefore, managers of marketing department lead to guide and instruct front desk
mangers on how to talk represent and solve customers’ queries.
Finance linked to all the operations departments: Fimancial decisions are in the hands of
manager who undertake all the research regarding cost, profit and investment. After that, these
decision gets communicate throughout in operational department to take practical actions.
Therefore, In IHG, all the operations works performed under the boundaries of financial stability
of hotel so that cost get minimized and avoid wastage. Employees get aware about minimizing
the cost of production and services as regard by financial department.
Discuss the use of franchising and licensing developments
Franchising in the traditional as well as an important way to contribute in global economy. In
which, organization enable franchising licensee for the other firms to take over their services into
their country. It is known as company operations, work, manage and earn in the name of
franchising company. In which franchisor gets benefit to use brand name, customers and sell this
licensee to other party also. Therefore it is an effective way to get globally expands sale as well
as branding which contribute into the economy. In hospitality sector franchising is the becomes
the most common way of expansion into different countries as IHG has given licensee to

different owners which names as even hotels, crown plaza, regent hotels and resorts and many
more.
Licences are termed as agreement which give legal right over property, operations or product and
services. Licensing require proper documentation and authorised mutual agreement in which one
party gives right to use property (McCartney, and McCartney, 2020). It is important for
hospitality business to earn further profit by selling licence. The hotels could enable their
services and brand name through selling licence and get benefits in terms of high earnings.
Therefore, licence is an important aspect to work legally and present organisation operations in
an authorised manner.
Evaluate range of different operational roles
The IHG hotels are filled with various operational areas due to having global reach. As
hotel industry has relatively more employees and workforce due to wide operations, services and
expansion. The different roles are defined below:
 Front Desk Services: This role play fulfil the most relative recruitment of hotel by
attending customers at first place and solve their doubts, queries by assessing their
requirement from hotel.
 Housekeeping: The employee provides all the services related to rooms to provide a
valuable stay for guest. It requires sense of understanding, proper hygienic and clean
room service.
 Accounting: It is the most vital role performed by the accounting mangers of IHG.
Keeping records and data of organisational expenses, cost, return on investment and other
money related aspects. Accounting mangers takes all the records alive and updated for
future purpose and preparing reports, balance sheets to identify actual earning of hotel.
These records are the evidence and proof of hotels working in the eye of law.
 Marketing & Sales: Marketing managers play vital role in promoting and selling hotel
services. It require innovative and attractive way to attract customers at vast number so
that they the hotel make customers relations. These managers come up with innovative
aspects by launching online events, campaigns to grab the audience.

 Managers and directors: These are the top authorities who grant permission for further
actions and guide the hotel staff on what is wrong and right. Therefore, these mangers
are highly professional and dedicated towards their criteria of working.
Examine the skills required for roles within the hospitality industry and skills shortage in present
 Communication skills: These skills are the most necessary one as hospitality staff must
be well known about language and fluency to attract number of customers and maintain a
standard flow of working. Good communication will lead to eliminate dispute and easy
flow of information.
 Time management skills: Every organisation wants to get effective and efficient in
working. So that time management is essentially required to have in employees.
Managing time will lead to eliminate overburden and early work completion. Also in
service sector services must be fast and accurate for great customer satisfaction.
 Creative and innovative skills colon the employees and staff must be creative in order to
think out of the box strategy to fulfil hotels in objective (Pienaar, and Willemse, 2008).
Being innovative will help in in gaining competitive advantage and come up with unique
solutions.
 Cooking and presentation skills: hospitality is known for good food and presentation. The
Chef must be a good cook who provides delicious food so that customers will not hesitate
in paying a high price.
Review the skills gaps within the hospitality industry
Nowadays, skilful and talented employees are hard to find due to having lots of competition and
modern framework of skills. There are skills gap of various technical skills which is required for
analysing customer actions through social media handling.
Intercontinental hotel is suffering from lack of employees who could manage Complex situations
and work effectively. There is also a requirement of innovative skills into the hotel group so that
the company could enable their operations in Asia (Zhang, Jiang, and Li, 2013). communication
gap is also affecting the hospitality industry as they need to pay attention on culture and
Diversity to reduce language barriers while working at foreign context.

Analyse the impact that skills gaps have on hospitality businesses
Skill gap need to be address as they have the impact on organisation productivity and efficiency.
The hotel IHG has aim to expand their operations in in Asia where they need to provide effective
training to the Employees for great customer satisfaction and avoid language barriers. All of this
could be possible by doing Research and taking customers feedback which will make innovative
strategies into organisation (Raub, and Robert, 2013). Enable training programs in order to get
acknowledge of modern software and digital tools for better and smooth functioning.
CONCLUSION
The report has concluded that hospitality industry is highly contributed in countries economy and
GDP growth. Therefore, there is need to identify the utmost functions and areas of working by
analyzing the skill gap and providing effective training to the Employees as it is the only way to
overcome with this factor.

References
Books and journals:
Daskin, M. and Tezer, M., 2012. Organizational politics and turnover: An empirical research
from hospitality industry. Tourism: An International Interdisciplinary Journal, 60(3),
pp.273-291.
Gursoy, D., Rahman, I. and Swanger, N., 2012. Industry's expectations from hospitality schools:
What has changed?. Journal of Hospitality & Tourism Education, 24(4), pp.32-42.
Langvinienė, N. and Daunoravičiūtė, I., 2015. Factors influencing the success of business model
in the hospitality service industry. Procedia-Social and Behavioral Sciences, 213,
pp.902-910.
Lupu, N., Tanase, M.O. and Nica, A.M., 2014. Perception about business education in the
tourism domain and the hospitality industry. Amfiteatru Economic Journal, 16(37),
pp.800-810.
McCartney, G. and McCartney, A., 2020. Rise of the machines: towards a conceptual service-
robot research framework for the hospitality and tourism industry. International
Journal of Contemporary Hospitality Management.
Pienaar, J. and Willemse, S.A., 2008. Burnout, engagement, coping and general health of service
employees in the hospitality industry. Tourism Management, 29(6), pp.1053-1063.
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.
Zhang, Z., Jiang, M. and Li, X., 2013. Refining the relationship between attribute performance
and customer satisfaction in the Chinese hospitality industry. Total Quality
Management & Business Excellence, 24(11-12), pp.1364-1375.