The Contemporary Hospitality Industry

This document provides an overview of the contemporary hospitality industry, including the diversification of sectors, contribution to the economy, interrelationship between functional and operational departments, and the importance of franchising and licensing in global development. It also discusses the current and potential trends in the industry and includes a PESTLE analysis of Hotel Goring.

THE
CONTEMPORARY
HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK A...........................................................................................................................................4
Diversification of Sectors in Hospitality Industry......................................................................4
Contribution of Hospitality Industry on Economy......................................................................5
Interrelationship Functional And Operational Departments of Hotel Goring............................5
Importance of Franchising And Licensing In Global Development...........................................6
TASK B...........................................................................................................................................7
Operational Skills and Roles in Hospitality Industry ................................................................7
Methods To Develop The Skilled Employees............................................................................8
TASK C...........................................................................................................................................8
Current And Potential Trends In The Hospitality Industry.........................................................8
PESTLE Analysis of Hotel Goring............................................................................................9
SWOT analysis of Goring Hotel ..............................................................................................10
Evaluation of The External factors...........................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality is a large aspect as it involves all the small and large scale business which
come under the hospitality nature. The businesses under hospitality are mainly hotels,
restaurants, cafe, which is also called the services industry and the driving force of hospitality
industry is tourism industry as it is the part o hospitality industry. Hospitality industry is very
essential for the people as it provides the services which help them to relax and get satisfied in
the amount they are willing to pay. There are many activities which a person wants In order to
fulfill his affection needs and self actualization needs. The hospitality industry ensures the
person's accommodation and services are good so that they are satisfied to increase their
experience and also increase the growth of the industry. Th industry includes the hotels, motels,
restaurants, Online Travel agents, Cruise ships, Night clubs, bars, casinos. The hospitality
industry is growing very rapidly due to increase In market demand and economic growth of the
natio0n and every person is self-sufficient to pay for their leisure time. The industry have also
increased the ranges of the services and also provided with variety of prices to suit the budget of
the customers. In this report there is a brief study about how hospitality industry is growing and
what are the factors which affects the growth pf the industry.
TASK A
Diversification of Sectors in Hospitality Industry
The hospitality industry is the very rapid growing industry and it is gaining its popularity
due to its different sectors of the industry and it also increases all the sector which will help in
developing the industry more effectively.
Lodging Accommodation
This sector of hospitality industry include the accommodation of the people who seek to
have some leisure time o their own and also includes resorts, high star rated hotels with good
comfort. The lodging sector have also increased the business, and they also started to make the
people stay at the camps in the forest for the people who love adventure or nature with the same
satisfaction and services like in hotel. There are several hotels which do not have any rooms and
just connected to nature.(Walsh, Chang and Tse, 2015) This sector also have increases the
efficiency to increase the profit effectively to provide comfort to the customers and also

industrialized value of satisfaction by innovating the services and adopting new strategies which
are more effective.
Travel and Tourism
Travel and tourism is another sector which comer under the hospitality industry and in
this sector it includes transportation services like buses, airlines, trains which help the tourist to
travel and reach the destination to enjoy their time. The market of travel and tourism have grown
immensely after the globalization and liberalization as many big player stared to invest in foreign
companies which also allowed the people to increase their visits to see the services which the
company is providing. Hospitality industry is mostly dependent on Travel and tourism as most
of the people who opt to use the travelling options are tourist which visit the country or the
region for a particular time. (Murphy and et.al., 2018)
Entertainment Sector
The entertainment sector help the people to relax and enjoy their visits to other places ans
it helps to provide different activities which are games, sports, Cruise, nightclubs, bars . This
develops an interest of the tourist in the country and also help them to increase the experiences
and also satisfaction. (Cheng and Tung, 2019)
Contribution of Hospitality Industry on Economy.
The hospitality industry have also increased the growth of the economy by increasing
their businesses as the industry is a very large scale revenue generation of the economy and with
the increase in the profits and sales of the industry it also improves the economy. There are
different economy which gave to be analyzed that how the hospitality industry have impacted
them and what are the benefits of it.
Local Economy
The hospitality industry have contributed in the local society where the bushiness is
running by proving job to the people and also increasing the standard of living with the increase
their income. (Kang, Lee and Yoo, 2016) The people who now earn more income are likely to
increase the demands and desires to fulfill them and get satisfied. It also increases the heritage
value and cultural value of the local economy.

National Economy
Hospitality industry help the national economy by providing better infrastructure to the
country and also helping the people to get the better employment opportunities and increase their
skills and knowledge. This also helps the population to increase their knowledge and be more
understanding towards their work. The increase in hospitality industry will also increase the
different technology in the country which will develop the population to be more effective and
increase their earning power.
Global Economy
Hospitality industry help all the economies to connect with each other with the help of
travel and tourism sector and this help to increase and improve the efficiency of the all the
countries which are having highly effective hospitality industry to provide better services and
satisfaction to the customers.(Min, Swanger and Gursoy, 2016)
Interrelationship Functional And Operational Departments of Hotel Goring
The interrelationship between different departments of hotel goring is very essential as
the hotel needs to provide the excellent services to their customers as they are rated as the five
star category hotel in London. The hotel also focuses on the satisfaction of their customers with
the help of improving their internal relationships of all the departments to provide the better
working.
Marketing and HR
The hr department helps the hotel to find the right talent which are potential and also
have required knowledge and skills which will help to increase the efficiency of the hotel. the
departments also have to discuss the requirements what the marketing department wants and Hr
department also help in controlling the Marketing department activities to check if they are
effective in doing work for the hotel or not.
Marketing and Finance
The interrelationship between marketing and finance is also important as fiance will
analyze all the numerical value which and the cost which have incurred and all the monetary
policies on which marketing department have to work to increase the sales of the hotel.

Importance of Franchising And Licensing In Global Development
Franchising and licensing in the global hospitality market will help the industry to
develop and also increase the productivity more effectively. The industry must also understand
the importance to franchising and licensing their businesses to other person and what are the
problems they can face while doing the process.
Franchising
It is the very rapid growing aspect which is increasing the economy of UK positively as
many reputed companies are giving their rights to the business owners who can run the business
with the companies which they took franchisee of. This will also increase the goodwill of the
company and also increase the revenue generation. The popular business do not have to wait to
invest in the business as it can give the right and another business will invest in it and provide
them with their profits.(Yadav, Kumar Dokania and Swaroop Pathak, 2016)
Licensing
In licensing it is also the part of expansion but in this the brand is been sold to other
businesses and the money is earned from that as the royalties. And in this the original owner of
the company is changed which more effectively changes the policies to increase the efficiency of
the economy. It also helps the economy to grow by proving more employment opportunities to
the local population.
TASK B
Operational Skills and Roles in Hospitality Industry
The skills which the employees in the hospitality industry should increase the
effectiveness of the industry and also provide with better employment opportunities. As there are
different skills according to the hospitality sector of the industry.
Guest Services Skills
Hotel goring have analyzed that the need of customers service skills is very important to
grow the business and increase the profits of the hotel. The employees which are dealing with the
guests and also have to attend them should have the skills to communicate well and also have to
be well-dressed. The employees also need to have the technical and analytical skills so that they
can increase the service satisfaction of the customers.
Food and beverages skills

Hotel Goring also need to hire the proper employees who are good at the skills which are
required in the food and beverages section of the hotel. The employee also need to have the
proper knowledge about what they are serving to their customers, the employee should also
should have the full attention while providing service to the guest.(Huang and et.al., 2016) The
employee should not be lousy and should be energetic while serving and also should know how
to solve the problems with less cost and less time.
Maintenance and cleaning skills
Goring hotel will only be effective when they ave the hygienic and customer friendly
environment in the hotel and that will only be possible when the housekeepers have knowledge
about all the cleaning materials which are effective in keeping the hotel hygienic and also they
should also have the knowledge of basic cleaning skills like buffing, chemical use, dusting,
mopping, toilet cleaning, sweeping. They should also know to tackle the customers and build a
good communication with them.
Management skills
Goring hotels also need to have the management effective to check on all the other
operations of the hotel so the there can not be any flaw in the hotel. The manager should also
have a proper management skills which includes the manager should let the other employee do
their task and supervise the not intervene before, they should also know how to maintain the
work ethic of the hotel, he should be humble and kind and should have good communication
skills, the manager should also have a good leadership skill so that thy can influence other
employment to be effective in their task.
Methods To Develop The Skilled Employees
Goring hotels have also analyzed some methods which will increase the skills of the
employees to make them more efficient and also increase the effectiveness of the hotel. The
managers of the hotel also have to make some effective strategy so that they can make the better
services with the increased skills.(Wang, 2016)
Core Training
In this the employees are trained on the conceptual basis of their roles and responsibilities
as there can be some employees who do not understand their job profile properly and are
inefficient in achieving their goals.

Personal Development
The employees of the hotel in this method will be given training on their personal skills
like culture, moral, skills, knowledge so that the employees have more data to analyses and also
to make better decision.
Leadership training
If the management of Goring have the better leadership styles it will also increase the
efficiency of their employees and also provide with more effective results. And the hotel also
need to train the employees to increase the leadership qualities in a manager as there might be
the traits but by training they can be used effectively.
TASK C
Current And Potential Trends In The Hospitality Industry
The hospitality industry is growing very rapidly and the businesses have to analyze
various current market trends to compete in the market and also increase the business profits.
Technology Trends
Innovation in the technology in hospitality industry is increasing with the increase in the
popularity of the industry. All the businesses in industry is trying to compete in the competitive
market to get the competitive advantage in the market and also increase their profits. The
companies also have to use to new technology to attract the customers.(Grobelna, 2016)
Marketing Trends
The hospitality industry is all about marketing to attract the customers and increase their
business and the companies which understand and have invested in the marketing innovation and
developing their services so that they can increase their customer relationship effectively. The
companies also need to adopt and analyses the latest marketing strategies as there is high
competition and all the companies have to be updated to compete in the market to survive and
earn maximum profits.
Food And Beverages trends
Another current trend in the industry is that customers are now more concerned about
what they eat, and they will pay more to get the healthy food. The companies have also stared to
use the organic food in order to satisfy their customers and keep them healthy.

PESTLE Analysis of Hotel Goring
This analysis will help to understand the external factors which are affecting the business
activities.
Political factors
The hotel need to analyze all the factors which are contr9olled by the government and
understand that weather the factors are creating issues in the activities of the hotel or helping to
to increase the sales of the hotel. Goring hotel also have to analyze the effects of Brexit as it can
also impact their customer's behavior and it might decrease the sales of the hotel. After the Brexit
the hotel also need to evaluate that the tourist after Brexit are getting visa for traveling UK or not
so that they can make an effective marketing strategy to attract the customers from that
population.
Economical Factors
Hotel Goring have also analyzed that due to decrease in the currency of the country can
affect the business of the hotel, and they also have to make changes in the rates of the rooms to
recover the losses as the customers of Goring hotel are mainly from high social class and does
not impact slight increase in the prices.
Social Factors
Goring Hotel need to analyze that social and culture factor to analyze the customer's
behavioral pattern so that the hotel can make an effective model and increase the goodwill in the
market, and they also have to make some strategies which also support the beliefs and culture of
the society where the hotel is situated.
Technological Factors
The hotel also have to analyze the latest technological trends which they can adopt in
order to attract the customers as the Motto of the Goring Hotel Is Innovation Increases the new
Customers and also retain the old customers. The hotel have also started to accept the cashless
payments and also increased their equipment in the rooms which will increase the service
satisfaction.
Legal Factors
Goring also need to analyze the laws which are applied for the hotel in UK so that the
nature of their business is lawful, and they also have to conduct all the ethical practices. The

customer can also sue the hotel if the customer's personal information is being sold to any other
entity under the data protection act. (Kandampully, Zhang and Bilgihan, 2015)The hotel have to
be professional and not interfere in the matter of the guest.
Environmental Factors
The hotel also have to take care of their activities to take care of the nature, and they also
have to ensure that they have to protect the environment in every possible ways. The hotel also
have used the water harvesting system to save the water and also increase the plantation around
the hotel.
SWOT analysis of Goring Hotel
Strengths
 Goring hotel have excellent quality in their services.
 The hotel also know hot to motivate and retain their employees.
 The hotel have also increased the services quality to improve the goodwill in the market.
 The Location of the hotel helps to increase the customers interaction with the hotel. The company also help the customer feedback to improve and also use the customer
mapping process to increase the efficiency.(Jones, Hillier and Comfort, 2016)
Weaknesses
 the hotel do not advertise them to increase their sales in the market.
 Goring Hotel is still using the old traditional mouth publicity method to increase the
sales.
 The hotel did not expand leaving them with only one hotel property and which will have
low profits. They also have all the traditional methods which can decease the efficiency of the hotel.
Opportunities
 The Goring hotel also ca expand their hotel by increasing the number of rooms ot
constructing a new hotel adjoining the old one.
 The hotel can also increase their expansion by opening anew hotel chain on a very
promising location to increase the profits double.
 The hotel can also increase the use of advance technologies which will also make the
hotel advance with modern look.

 The hotel can also increase the kitchen.
Threats
 The hotel can face many competitions as many new hotels can be opened near Hotel
Goring.
 Downfall in the economy can adversely affect the operations of the hotel.
 The occupancy of the hotel can be lowered which can also impact the lower per room
earnings as well.
Evaluation of The External factors
The Hotel Goring have analyses the all the external factor which can impact the growth
and they have also understood which factors are important to increase the efficiency of the hotel.
(Radojevic, Stanisic and Stanic, 2015) Political factors are also very essential to understand
weather the government policies will affect the business of the hotel or the impact of Brexit
which can also decrease or increase the sales of the hotel. The behavior and social culture of the
customer also play an important role in increasing the operations of the hotel and providing with
better opportunities to expand their business.
CONCLUSION
This report had an detailed information about the different aspect of the hospitality
industry and which helped in the growth of the economy and also connected all the economies
globally. There is a description about how hotel Goring increased the efficiency of their
employees and also used some methods to help to be efficient to increase the productivity of the
hotel. The report also had an external and internal analysis of Goring Hotel to know all the
factors of the business environment.
REFERENCES
Books and Journals

Cheng T.Y. and Tung V.W.S., 2019. Dropping out of the Hospitality Industry After Frontline
Work Experience: an Investigation Into the Personal Changes of Hospitality
Employees. International Journal of Hospitality & Tourism Administration. pp.1-21.
Grobelna A., 2016. Role ambiguity: a problem or a challenge facing contemporary hospitality
industry. The critical role of employees’ creativity. International Journal of
Contemporary Management. 14(3). pp.77-98.
Huang J. and et.al., 2016. The impact of CEO servant leadership on firm performance in the
hospitality industry. International Journal of Contemporary Hospitality
Management. 28(5). pp.945-968.
Jones P., Hillier D. and Comfort D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal
of Contemporary Hospitality Management. 28(1). pp.36-67.
Kandampully J., Zhang T. and Bilgihan A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Kang K.H., Lee S. and Yoo C., 2016. The effect of national culture on corporate social
responsibility in the hospitality industry. International Journal of Contemporary
Hospitality Management. 28(8). pp.1728-1758.
Min H., Swanger N. and Gursoy D., 2016. A longitudinal investigation of the importance of
course subjects in the hospitality curriculum: An industry perspective. Journal of
Hospitality & Tourism Education. 28(1). pp.10-20.
Murphy K.ans et.al., 2018. A review of high performance work practices (HPWPs) literature and
recommendations for future research in the hospitality industry. International Journal of
Contemporary Hospitality Management. 30(1). pp.365-388.
Radojevic T., Stanisic N. and Stanic N., 2015. Ensuring positive feedback: Factors that influence
customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
Walsh K., Chang S. and Tse E.C.Y., 2015. Understanding students’ intentions to join the
hospitality industry: The role of emotional intelligence, service orientation, and industry
satisfaction. Cornell Hospitality Quarterly. 56(4). pp.369-382.
Wang C.J., 2016. Does leader-member exchange enhance performance in the hospitality
industry? The mediating roles of task motivation and creativity. International Journal of
Contemporary Hospitality Management. 28(5). pp.969-987.
Yadav R., Kumar Dokania A. and Swaroop Pathak G., 2016. The influence of green marketing
functions in building corporate image: Evidences from hospitality industry in a
developing nation. International Journal of Contemporary Hospitality
Management. 28(10). pp.2178-2196.