The Contemporary Hospitality Industry

This report discusses the structure, size, and scope of the hospitality industry, as well as the services and products offered by different types of businesses within the industry. It also explores the range of operational and functional departments in hospitality organizations and the contribution of the industry to local, national, and international economies. Additionally, it covers the different operational roles within the industry and the skills required for these roles, as well as the current skills shortages in the industry.

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Different types of business within Hospitality Industry and services and products offered
by them........................................................................................................................................3
P2 Range of operational and functional department in hospitality Organisation........................4
P3 Contribution of the hospitality industry to local, national and international economies........6
LO2..................................................................................................................................................7
P4 Range of different operational roles within the hospitality industry......................................7
P5 Skills required for roles within the hospitality industry and current skills shortages............8
LO3................................................................................................................................................10
LO4................................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry that is an facet of service industry can be defined as one that offers
services like lodging food and drink services event planning theme park and transportation.
These services are provided through organisations like restaurant hotels casino amusement park
Cruise entertainment and tourism related services. Context of service industry hospitality
industry is one of these significant contributors of economic activity and this report will discuss
about structure size and scope of hospitality industry full stop this will be followed by current
and future anticipated skills required for hospitality industry. It is a service industry and this is
why skills play important role in success of hospitality. This report will contextualise Hilton
Hotel for discussion.
LO1
P1 Different types of business within Hospitality Industry and services and products offered by
them
There are several types of businesses operating within hospitality industry and services and
products of hospitality industry have heaven classified in several types. Businesses in hospitality
industry are-
Accommodation
These are the businesses providing accommodation services to their customers. This means that
they allowed to customers to to stay at their place (Stylos and Zwiegelaar, 2019). The service
providers are known as hotel resort andlodges. This means that customers can rent the places for
a short time. In business is that provide only loading services are limited to accommodation and
does not provide any service.
Restaurants
This means that they provide services of food and beverages to their customers. In hospitality
industry they occupy a significant place. This means that various types of food and beverages are

offered by these businesses. Scope of these businesses is limited to providing food and
beverages.
Pubs
These are also known as public houses and their product and service offerings are that they sell
alcoholic drinks for consumption on premises. The pubs are open to public without any
membership, and serve beer and alcoholic drinks and their scope is limited to that only.
Hospitality and Food service providers
These are the businesses that provide hospitality service that means accommodation service and
also offer several other services addition to accommodation. Along with this they also provide
food services to the customers.
Membership Clubs
These are those clubs where only their members can enter. These clubs provide several types of
services and all these are for its members only.
Travel and tourism is also one of the important aspects of hospitality industry and they provide
services of tourism in different forms and travel services (Presenza, Messeni Petruzzelli and
Natalicchio, 2019). Travel and tourism make important relation with hospitality services as the
travellers are from different places and they require services of accommodation and food and
beverages. Travellers when are tourist they also use other services such as recreational and other
services of hospitality industry.
In its services accommodation services are of intangible nature as customers can only live for a
particular time and they do not get any physical product. Other services such as food and
beverages are of tangible nature.
P2 Range of operational and functional department in hospitality Organisation
Hospitality industry consists of several functions and locations and in order to complete all these
operations and functions of business several departments are employed in business. Operational
department of Hilton Hotel are-

Housekeeping Department
This department is concerned with maintaining cleanliness and readiness for use of the
areas such as guest room, lobbies, common areas and public areas of the hotel (Sen and Kaushik,
2016). This is directly related to guest experience of the hotel. They clean rooms after checkout
in order to ensure room is ready for new guest to check in.
Food production Department
This department is also known as kitchen department and is concerned with preparation
of the food items. Important role and jobs in this department are of Chef, sous Chef, and kitchen
manager. They are responsible for hygiene of the food being prepared at Hilton Hotel.
Food and Beverages Service Department
This department ensures that food and beverages prepared in food production department
is served to customers in bar. In this services for food and beverages presentation and services
are completed by waiter and waitresses.
Front Office Department
This department is responsible for connecting and contacting to the customers. They are
responsible for guest bookings and welcoming them as they enter into the hotel. They along with
this also deal with customer complaints and their queries.
Functional Department of Hilton Hotel
Marketing Department
This department is concerned with communicating and promoting the hotel to customers
and potential customers (Boella and Goss-Turner, 2019). Marketing department ensures that
hotel is presented in such way that it is able to attract customers.
HR Department
This department is concerned with managing human resources requirements of the hotel.
This ensures that organisation have all kind of manpower that is required by the hotel. They

undertake acquisition of human resources and then all the employment related requirements are
fulfilled by this department.
Accounting and Finance department
Accounting department is concerned with fulfilling all the requirements of the hotel
related to accounting of the earnings and expense. Finance department on the other hand is
concerned with financial planning and controlling of the hotel.
Interrelationship of the departments
Functional department ensures that operational department are able to perform effectively. In
order to do so-
 Human resource department fulfils all the requirements concerned with manpower in the
hotel.
 Financial department fulfils all the needs regarding finance that is required by operations
department to provide quality services to the guest (Boella and Goss-Turner, 2019).
 In this operations department ensures that they are providing services that are promised
and communicated by marketing department.
 Front office and accounting department are interrelated as front office firstly collect bills
from guest and later these are preceded with accounting department.
P3 Contribution of the hospitality industry to local, national and international economies
Hospitality Industry is playing important role in local, national and international
economy. Hospitality industry when operates at local level they contribute to local economy and
its development. This means that when industries and organisations are operating at local level in
such they contribute to local economy in different aspects such as tax contribution, attracting
tourist and increasing local economy of the country (Boora and Dhankar, 2017). National
economy is made of local economy ad this is how strong local economy contributes in national
economy and its strength. Hospitality industry one of the important industry that is important for
growth of tourism activity in a country and as tourism activities increase they contribute to

national economy and income of country gets increased. This is how local and national economy
is contributed by hospitality industry.
Rapid increase and expansion of hospitality industry is also playing key role in growth and
development of international economy. Many of the organisations including Hilton hotel are
operating at international level and this increase international economic activities of hospitality
industry. Hospitality industry in international level operates through licensing and franchising
agreements. Licensing and franchising agreement improves international relationship and
influence global development of hospitality industry.
Brand identity and reputation has played key role in international expansion of hospitality firms
and licensing and franchising has contributed in development of economic worth for hospitality
industry.
In international economy they contribute in several ways as they increase employment and
enhance tourism value of the areas and country (Manzoor, Wei and Asif, 2019). Along with this
they are provide benefits of globalisation as they share their culture and contribute in
development of social life of locals of a country.
LO2
P4 Range of different operational roles within the hospitality industry
Hospitality industry employees several operational roles and these rules are-
Functional specialist
These are employed in functional areas of organisation. Functional specialists are those who
have a specific knowledge regarding their particular functional department. Main functional
departments in Hilton Hotel are Finance HR and marketing. This means that specialist in
financial department are having specific and special knowledge of financial operations of
organisation (Robinson and et.al., 2016). Those who are working in HR department possess
specific knowledge of HR operations and processes. And people working in marketing
department of the hotel possess specific knowledge of marketing processes and functions. These
are are some of the roles that are there in Hilton Hotel.

Operational roles
Hilton Hotel employee civil operational department and people working in and jobs employed in
these departments are known as operational roles. Some of the example of this can be front
office supervisor and manager, food and beverages supervisor etc. Along with this there are
many other operational roles in Hilton Hotel.
Supervisors
This role includes supervisors of all departments in Hilton Hotel. They are responsible for
directly supervising the work of those who are working at lower level of management.For
example housekeeping supervisor will supervise people employed for cleaning and maintenance
of hotel facility. Indus contact food production supervisor will supervise and oversee activities
being carried out in food production department of Hotel.
Front line manager
This is another operational role in Hilton Hotel and in hospitality industry. Front line manager is
responsible to oversee operational activities of the hotel. In hospitality industry their
responsibility is to manage front-line staff of the hotel. These are those managers who are
responsible for contacting customers for the first time (Chauhan and Singh, 2017). And they also
directly contact customers. This is one of very important operational role in hospitality industry
as one of the key aspect of customer satisfaction is related to operations of Frontline
management. They are required to possess specific skills and there required to attention on
customer satisfaction.
Back office management roles
Back office management is involved in settlement of of bills clearance record maintenance
maintaining regulatory compliance is accounting and Information Technology Services. Back
office also provides administrative and supportive services and they are very important for
effective operations performance. This is another role in hospitality organisation.

P5 Skills required for roles within the hospitality industry and current skills shortages
Hospitality roles were discussed in above heading and there are several skills that are
required for the roles discussed above. These skills are-
Technical Skills
Technology has become integral part of all activities of the organisation (Gill, 2017).
Hilton hotel also employs technology for effective completion of the work. Roles in which
technical skills are important are information technology roles, and functions such as online
marketing.
Customer Service Skills
Customer services are important as this is a service industry. Customer satisfaction is
centre of the activities of the organisation. This is why it is one of the important requirements for
roles in hospitality industry is customer service skills this means that they are required to
positively influence customers and provide them high quality services.
Team Working Skills
This is another skill, team working skill refers to skill that enables individual to
effectively perform in a team.
Cultural Awareness
This is an industry in which some of the roles directly deal with customers and this is
why it is important that they are aware about culture of the guest (Gill, 2017). This has become
very important skill because of internationalization and globalisation.
Skills that are lacking and facing a shortage are team working skills due to less team morale,
lacking people centricity or can be said as customer centricity.
The skill gap that exist in hospitality industry exist because of contemporary shortage
such as shortage of labour and high labour turnover. This affects quality and production of the
hospitality organisations.

In order to fill the gap that exist in hospitality industry this can be fulfilled by ensuring that
institutions providing specific knowledge and training focus on the skills that are required but
currently have a gap (Filimonau and Naumova, 2020). Another way to fill the gap is that
organisations ensure and make efforts to reduce turnover and specifically focus on skilled
workforce.
LO3
Covered in PPT
LO4
Covered in PPT
CONCLUSION
On the basis of above discussion it can be concluded that hospitality industry is one of the
important service industry. Services of this industry are classified into several types. Individual
industry also employs different departments which are known as operational and functional
departments. Later economic contribution of the industry was discussed and this followed by
discussion over roles in the organisation. These roles are facing shortage of skills required and
how the shortage and gap can be filled was also discussed in the report.

REFERENCES
Books and Journals
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Boora, S.S. and Dhankar, S., 2017. Foreign direct investment and its impact upon the Indian
hospitality industry. African Journal of Hospitality, Tourism and Leisure. 6(1). pp.1-17.
Chauhan, V. and Singh, J., 2017. Enterprise Resource Planning Systems for Service Performance
in Tourism and Hospitality Industry. International Journal of Hospitality & Tourism
Systems, 10(1).
Filimonau, V. and Naumova, E., 2020. The blockchain technology and the scope of its
application in hospitality operations. International Journal of Hospitality
Management, 87, p.102383.
Gill, A., 2017. Green sustainable operations: a case from service industry. International Journal
of Services and Operations Management. 26(4). pp.411-427.
Manzoor, F., Wei, L. and Asif, M., 2019. The contribution of sustainable tourism to economic
growth and employment in Pakistan. International journal of environmental research
and public health. 16(19). p.3785.
Presenza, A., Messeni Petruzzelli, A. and Natalicchio, A., 2019. Business model innovation for
sustainability. Highlights from the tourism and hospitality industry.
Robinson, P and et.al., 2016. Operations management in the travel industry. Cabi.
Sen, K. and Kaushik, T., 2016. Recent innovative measures across different functions in the
Indian hospitality industry. Worldwide Hospitality and Tourism Themes.
Stylos, N. and Zwiegelaar, J., 2019. Big Data as a Game Changer: How Does It Shape Business
Intelligence Within a Tourism and Hospitality Industry Context?. In Big Data and
Innovation in Tourism, Travel, and Hospitality (pp. 163-181). Springer, Singapore.