The Contemporary Hospitality Industry

This document provides an overview of the contemporary hospitality industry, including the different types of businesses and services offered. It explores operational and functional departments within a chosen hospitality business and discusses the industry's contribution to local, national, and international economies. It also investigates various operational roles and the skills required for success in the hospitality industry.

The contemporary hospitality
industry

Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................3
P1 Explore the different types of business within the hospitality industry and the diverse
products and services they offer.............................................................................................3
P2 Examine a range of operational and functional departments within a chosen hospitality
business...................................................................................................................................3
P3 Discuss the contribution of the hospitality industry to local, national and international
economies...............................................................................................................................4
TASK 2............................................................................................................................................5
P4 Investigate a range of different operational roles within the hospitality industry.............5
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages.................................................................................................................................5
Task 3..............................................................................................................................................6
P6 PESTEL Analysis of hospitality industry.........................................................................6
P7 SWOT analysis of hospitality industry.............................................................................7
Task 4..............................................................................................................................................8
P8 Analyses of trends and developments affecting hospitality industry................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The ancient history of the hospitality started in 15000 BCE in France for
accommodating the members. Hospitality industry is a wide concept within the service industry
including the various services of food and drink, lodging, transportation. The industry involves
the hotels and motels, restaurants and bars, casinos hotels. The hospitality defines the
relationship between the guest and host (Ariza-Montes and et. al., 2018). The study has been
done on the Babington house it was built in 1705 located in the village of Babington between the
Radstock and Frome. It was converted in 1998 as hotel and club for weeding venue. The
property was sold to Joan Elcode. In the study discussion is made on the structure and size of
hospitality, current and anticipated skills, external and internal factors affecting the industry and
at last trends and development of the industry.
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TASK 1
P1 Explore the different types of business within the hospitality industry and the diverse
products and services they offer
Hospitality sector is a collection of broad variations of business function which is focusing
on providing customer satisfaction to its best level. This sector is further classified in various
segments which include food and beverage industry, accommodation industry, lodging, travel
and tourism. Accommodation Business: Various of people are interested in travelling the world and
they are required a place where they can stay. That business which provide place for
staying to the travelers comes under accommodation business. Hotels Motel, Inn, Hostel
Bed and breakfast are the various types of business of accommodations. Hotel businesses
are mostly found in cities and it is the end of journey of tourist. Motel business are just
the same as hotels but it provide less amenities and services as comparison to hotel.
Hostel also provides accommodation to Travelers in a limited budget. Hostels include
shared living quarters where guests can mingle with other travelers. Inn originally found
on the side of country road or highway. Such business are useful for those Travelers who
are looking to only stay for a single night. Food and Beverage Business: This business has divided in various parts on the basis of
purpose market ownership structure service capacity and service type. Below mentioned
table shows the classification of food and beverage businesses:
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P2 Examine a range of operational and functional departments within a chosen hospitality
business
Smoothly running of hotel industry is possible only when they make proper use of resources and
people in various departments. Following are the important operational and functional
departments for basic amenities as provided by Babington House (Brandao and et. al.,2020)
Operational Department Front Desk Services- Only front office staff is responsible for dealing with the guests and
maintaining a list of their bookings and contracts. Additionally, this follows prominence
on the detail oriented people for this job role so that they can meet all the needs of guests. Housekeeping- This department perform the critical tasks as they keep the rooms of
guests neat and clean. They are responsible for the cleaning detail of every room for
every minute as it implies a direct impression on guests (Cheluget and et. al.,2018).
Functional Department
 Accounting and finance Department- This department deals with controlling cost, credit
control, budgeting, payroll system, preparing financial statement etc. They prepare a
track of expenses and revenue which helps the business to grow.
 Sales and Marketing Department- Marketing refers to the process of understanding the
needs of customer and satisfying them by providing various products and services. In
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Hotel industry they are responsible for doing market research, developing new services,
by doing various sales promotion campaigns.
Interrelation of functional and operational departments
 Housekeeping interrelated with Human Resource Department: Housekeeping is
coordinating with the personal department for the purpose of recruitment of staff, issuing
of identity cards, confirmation, lockers promotion and many more.
 Purchase department interrelated with housekeeping: Purchase department is
responsible for purchasing various items which are used by housekeeping departments
which include room stationeries vehicles cleaning agents linens and many more.
 Human Resource Department and Front Office: Human resources department plays an
important role by developing guidelines for the front desk officer for the purpose of
initial screening candidates. Sometimes human resource management depend on the front
office for the purpose of distributing the application forms.
P3 Discuss the contribution of the hospitality industry to local, national and international
economies
Tourism is the one of the world’s largest industry which is growing at a very fast rate and
influencing economic sector a lot. For UK, tourism industry is a source of foreign exchange
revenue. Growth of this industry implies development of employment opportunity (Cheng and et.
al.,2018).
It is found that, in North East Asian countries, tourism has created employment of almost
86 million jobs of total employment. Along with job creation, they are responsible for generating
huge revenue. They had allowed the government to increase the resources for the purpose of
improving health and education conditions in the area.
Hospitality sector is expanding day by day
which result in the promotion of various changes in
the multicultural environment. This plays an
important role in helping strengthen the national
regional and global standard. Hospitality industry
of international level also increases the level of
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competition which is related to the economic growth as forecasted by International Monetary
Fund which allows the equal distribution of income in various developing countries. This
industry is going to cover the travel and tourism industry for the purpose of attracting huge
number of both tourists national as well as international (Franzoni and et. al.,2019).
Hospitality industry is responsible for the development of structure of employment by
making job available for operators, tour guides etc. It is related to the both development of
tourism industry as well as development of economy. They are also responsible of developing
local industries which include agriculture and production of food and retail sector.
TASK 2
P4 Investigate a range of different operational roles within the hospitality industry
In service industry, hospitality sector has covered a wide area which focus on event
planning, accommodation, theme parks and many other facilities which comes under tourism
industry. This industry is ready to become a multibillion dollar industry which is specially
focusing on the availability of airlines and disposable income.
Babington House of UK is in the condition for doing changes in their operations which
focus on the growth of management and development of various sections of organisation which
include kitchen workers, housekeeping, management, Human Resource, Marketing, Porters and
many more (García-Villaverde and et. al.,2017).
Porter are responsible in the process of interaction of customers directly by providing
various services to them. Along with this, they also act for doing cooperation with guests while
providing various services. Additionally, they are also responsible for providing substantial
customer service skills which are necessary to meet the needs and requirement of front of house
hospitality operations.
For the production of food within the hotel chain, executive chef is responsible for the same
as they decide the menus and venues. They are completely responsible for the effective food
planning and operations which are undertaken in kitchen. The room constitutes comes under the
Human Resource Department which include front office staff, uniformed services and
housekeeping as well. All these staffs are individually responsible for carrying out their
respective roles and functions in order to providing best service to their customers and gaining
profit (Kaurav and et. al.,2020).
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Housekeeping manager is responsible for taking care of all the activities done by the staff of
housekeeping department. They are required to have skills of keeping an eye on staff. In future,
they are required to have proper leadership skills so that they can maintain the performance of
organisation by using leadership style in the organisation.
Front office manager are required to have proper attracting communication skills as they
work as front image of organisation.
Key strength of Babington House within market
This hospitality organisation is focusing lot upon innovation. This helps to attract more
customers. Technology has become critical for attracting and retaining trends of hospitality
organisation. Hotel booking engine is provided to customer through online platform. This makes
this hotel effective and more attractive in front of customers.
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages
Hospitality industry continuously provide employment which welcomes the talented young
generation to work with them, according to this, they create employment. They focus on various
positions from starting level to other demands which is based on skills. Various key skills which
are required in this business or which the Babington House has thoroughly, laid focuses include: High level of customer service- In this business, guests expect a good and effective
quality of service as they work with customers facing environment. Hence, it is necessary
for them to provide best service to them and meet all the needs and requirements of
customers. Along with this, feedback of customer plays an important role. For getting
positive feedbacks, they have to focus on customer services. An efficient communication skill- Meeting both physical as well as mental demand of
customer is the priority of hospitality industry. Hence, it is necessary for the employees
of organisation to do proper communication with customers which is a part of effective
management. It also help the organisation in analysing the environment of marketing
(Legrand and et. al.,2020). Formal training features- This industry mainly works according to the rules, regulation
and laws set by the government. So it is necessary for organisation to provide proper
training to employees in order to satisfy the need of customers.
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Task 3
P6 PESTEL Analysis of hospitality industry
The hospitality has the direct and indirect impact on the economy which is affected by
the external and internal factors of the economy. It is a structure of macro environment which is
used for environment scanning.
In political factor the hotel industry is dependent on the tourism which is affected by the
government regulations. The hotel also affected by the terrorist attacks which decreases the
customer. The hospitality industry attracts the international tourism for which the government
charges high tax for luxury and star category of hotel. The election also affects the hotel industry
as new president is appointed which might makes new laws and rules affecting hospitality sector.
For example-Taj and Oberoi affected with terrorist attack on tourism rate. The economic factor
affects the industry due to the change in economic which involves the recession, inflation interest
rate, economic growth. Foreign exchange rate is another factor of economic which affects the
foreign traveller’s ability. For example- If global currency is strong than the American dollar the
person of US would like to visit. The hotel industry is influenced by the economic cycle
involving unemployment rate, job growth. (Younies and et. al.,2020).
The hospitality industry is also affected by social factor which affects the demand of
product and services. The hotels should avail the variety of facilities according to the
requirement of guest. The individual has a demand of single or twin rooms according to his
requirement. The factors involve the change in values, beliefs, change in pattern of work and
demographic changes. The biggest competition is Airbnb in the industry as the millennial enjoys
the rooms offered by Airbnb. Technological factors affect the industry as hotels are becoming
technology friendly. The hotel uses the CCTV camera to protect the customer luggage,
properties and provides the security to guest. The hotel provides the online facilities and check
in, check out to the customer with the use of technology. The services provided are intercoms,
lifts, Wi-Fi services. The hotel industry adopts the advanced technologies to increase the market
growth. For example- artificial intelligence, automation is adopted by the various hotels. The
social media like Facebook, Twitter is used to reach to potential customers which reduces the
advertisement cost and makes interaction with customers by taking feedbacks (Hameed and
et.al.,2020).
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The environmental factors also affect the hospitality sector which is related to the
weather condition the industry faces difficulty during this time. Due to the inability of travellers
the demand falls and pressurized to the hotel to minimize the carbon foot print. The factors
involve storms, earthquake, flood, or heavy rain. The guest requires the relaxing and warm
environment. For example, in the serious weather condition the taxes are applied to benefit more
friendly and environment related products. The hotel consumes lot of water, electricity and gas
which contributes in the shortage of resources. They get pressurize to use them economically and
need to calculate the energy usage by using smart technologies. The legal factors affect the hotel
industry as discrimination laws are followed by every hotel which benefited the tourism industry.
It involves the health and safety laws, consumer rights; it is necessary for the hotel to display the
truth menu of food and beverages to the guest and should follow the innkeeper laws or welfare of
the guests. Governments are offering tax deductions to the hospitality sector which boosts the
economy. The crime also affects the hotel which decreases the customer and leads to low profit
and low sales. For example- the hotel industry should comply with the general data protection
regulation (GDPR) as it helps in collecting huge amount of personal data from guests.
P7 SWOT analysis of hospitality industry
It refers to techniques of strategic planning used for identifying the opportunities,
weakness, strength and threats of the organization to meet the competition.
Strength – The industry earns high profit margin as it requires huge capital. It has a contribution
in local economy as it attracts the local people by providing various services and facilities. The
industry has a government support.
Weakness- The high rate of the hotels reduces the customer within and outside the industry as
some individual are not in position to afford. The lack of poor infrastructure and slow
implementation reduces the profitability and growth as fewer customers are attracted which
decrease the value.
Opportunities- The use of technology such as artificial intelligence, automation, robotics helps
in attracting the customers and eases their work. At peak season there is high demand of national
and international tourists (Schoffstall and et. al.,2017).
Threats- The hospitality industry faces the threat of increasing competition between the hotels
and changing travel pattern of consumers and their preferences. Fluctuations in international
tourist, unstable economy are also threat of industry.
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Task 4
P8 Analyses of trends and developments affecting hospitality industry
This sector has developed a huge growth and sustainability by reducing disposable
plastics, food waste. It has switched to eco-friendly environment. The customer will prefer close
destinations. It has accelerated high customer experience by taking confirmation of booking
through emails. It provides security to customers by proper sanitization. Through the use of
technology, it provides various features such as selection of pillows and blankets, packages of
hotels. The Babington house provides the facilities of mobile app for easy access (Zhang and et.
al.,2020).
.
The development took in hospitality industry of Babington house to provide the
assistance of chat box 24*7. It developed the digital room key for accessing room quickly. Self
check service was provided to the customers to reduce the waiting time and increasing the use of
virtual assistants with voice activation for everything. The hotel uses instant messages for the
enhancement of customer experience through communication. The implication of the technology
trends provides the service automation where it includes the automatic check-in through apps
and use facial recognition to unlock the guest room automatically by delivering more services
and amenities based on preferences. In hospitality location-based service is the effective trend of
technology which provides the facility of check-in-check-out anytime in between to keep
customers happy. To keep the growth in interaction and engagement with the guest’s mobile app
and chatbot is effective technology trend which leads to high loyalty program. With this guest
can control the room lighting, navigation, entertainment hub.
Some current and potential trends in hospitality organisation
Mobile applications for easy access- It is concluded that hospitality organisations requires to
have service online through the medium of app. This will help customers to make their bookings
and cancellations easily. here, they can also provide all details which customers want.
Digitised room key for quick room access – This is innovation in hospitality organisation that
will lead to make customer stay more safe and secure. This is digitised room keys.
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CONCLUSION
From study the conclusion is made on the hospitality industry which has developed its
growth internationally and domestically due to globalization and changing trends. The aim of the
hotels is to increase the sales and generate profit by attracting more tourists which is done by
providing better services and facilities. To overcome with the competition, it imparts various
skills in the staff and analysis the external factors and threats.
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REFERENCES
Books and journal
Ariza-Montes and et. al.,2018. Work environment and well-being of different occupational
groups in hospitality: Job Demand–Control–Support model. International Journal of
Hospitality Management, 73, pp.1-11.
Bangwal and et. al., 2019. Workplace environment, employee satisfaction and intent to
stay. International Journal of Contemporary Hospitality Management.
Brandao and et. al.,2020, September. Is Innovation in the Hospitality Industry Gender-Biased?
A Look at Hotel Managers' Innovation Practices. In European Conference on
Innovation and Entrepreneurship (pp. 146-154). Academic Conferences International
Limited.
Cheluget and et. al.,2018. The Link between Analysis Dimension of Strategic Orientation and
Firm Performance in Small and Medium Enterprises in the Hospitality Industry in
Kenya: The Moderating Role of Top Manager’s Ownership Status. International
Journal of Advances in Agriculture Sciences.
Cheng and et. al.,2018. Hotel employee job crafting, burnout, and satisfaction: The moderating
role of perceived organizational support. International Journal of Hospitality
Management, 72, pp.78-85.
Franzoni and et. al.,2019. Rainfall option impact on profits of the hospitality industry through
scenario correlation and copulas. Annals of Operations Research, pp.1-24.
García-Villaverde and et. al.,2017. Determinants of radical innovation in clustered firms of the
hospitality and tourism industry. International Journal of Hospitality Management, 61,
pp.45-58.
Hameed and et.al.,2020. Sustainable Human Resource Management in the Hospitality Industry:
Evidence from Rajasthan. In Sustainable Human Resource Management (pp. 227-245).
Springer, Singapore.
Kaurav and et. al.,2020. Technology-Driven Tourism and Hospitality Industry as a Tool for
Economic Development: A Bibliometric Analysis. In The Emerald Handbook of ICT in
Tourism and Hospitality. Emerald Publishing Limited.
Legrand and et. al.,2020. Social Entrepreneurship in Hospitality: Principles and Strategies for
Change. Routledge.
Nolan, F.S., 2017. Employees' perceptions of organizational effectiveness and ethical leadership
within the hospitality industry (Doctoral dissertation, Capella University).
Schoffstall and et. al.,2017. Hospitality and tourism student and alumni perspectives: promotion
expectations, academic and experience adjustments, and career growth. Journal of
Teaching in Travel & Tourism, 17(3), pp.189-207.
Younies and et. al.,2020. Hospitality workers’ reward and recognition. International Journal of
Law and Management.
Zhang and et. al.,2020. Well on the way: An exploratory study on occupational health in
hospitality. International Journal of Hospitality Management, 87, p.102382.
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