Impact of Global Growth on Hospitality Industry

The assignment discusses how global growth has positively impacted the hospitality industry in the UK, leading to increased employment opportunities, improved economic growth, and establishment of new businesses through franchising and licensing agreements. It highlights the example of new restaurants emerging with McDonald's franchises and successful enterprises acquiring alcohol licenses for pubs and bars in hotels. The document concludes that this growth has contributed to overall economic development and improved the hospitality industry.

Contemporary Hospitality industry
Introduction
Hospitality industry in UK is mainly represented by the nation
pubs, hotels, restaurants and leisure organizations which produce
almost 4% of UK GDP. However, their main objective is come
up with unique ideas in order to facilitate domestic as well as
foreign travellers by fulfilling their needs and demands. Initially,
throw lights on different sectors and their contribution in local,
national and international economy of a nation.
Sectors of hospitality
Hospitality industry is a bustling sector with myriad segments but
service of consumers are unifying factor which is shared by all
segments of sector. In fact, all the sectors of this industry make
sure that tourist needs are catered in a holistic way. However,
hospitality itself consider as multi-billion dollar industry which
mainly based on availability of disposable income and leisure
time. Success of an organization is totally depending upon
efficiency of hospitality group and effectiveness of business
model. Thus, various types of sector in hospitality industry is
discussed as follows-
Lodging Accommodation- It’s a broad sector that covers various
facilities which is going to provide to the final users that started
from bed & breakfast enterprises as well as hotels for other
services that offers lodging facilities. Customer service is
significant in this sector also while providing accommodation
services to the users.
Food and beverages- Another crucial part of hospitality sector is
food and beverages which is consider as supreme in whole
industry. In fact, this industry is further classified into various
services.
Travel and tourism- It’s a very vast sector with number of key players across the
international level. Some of the necessary services that come under this sector are;
trains, aviation, cruise ships and other crew members in service. Main objective of
this sector is to facilitate consumers from moving one place to another. Hence, travel
and tourism sector is seen as backbone of hospitality industry. In fact, this huge
domain demands creativity, strategy and novelty in every step.
Every year millions of tourists come in UK and contributed to massive of almost £73
billion in through hospitality industry. Therefore, number of business options are
identified which are operate under this industry are-
Area or tour guide- It’s a competitive era where various individuals travel for
gaining lots of things across the distinct nation. Therefore, they want some native
people of that place in order to make the travellers aware about the place history and
various facts. As a result, this shows that being a tour guide is also one of the most
beneficial businesses in this industry.
Photography or videography- Most of the consumers are interested to capture their
memories for life time in order recall it whenever they want and even for showing
their loved ones. Hence, photography is another aspect which is seen as a business
purpose in hospitality industry.
Apart from this, number of business is determined in this sector which is beneficial
for whole industry. Moreover, various types of products are offered by distinct
organizations in order to facilitate consumers. For example; foods and beverages are
offered by various restaurants, history of place is provided by tourist guide,
transportation facilities is offered by tourism organization, hotels are offering rooms
facilities and many more. These examples show that various businesses which are
operating within hospitality industry are providing distinct types of products and
services to the final customers.

Hospitality industry is coming up with various new ideas and concepts for
facilitating several numbers of customers that are coming from several places.
Thus, this industry got engaged in offering all type of business to their final users.
As a result, total turnover of numerous businesses in hospitality industry is
reached almost £98 billion, up from nearly £92 billion in 2016 and around £86
billion in 2015 as per the figures released by ONS. By assessing this growth rate,
it has been identified that recruitment platform Adia expecting from this figure
that it would be reach till £100 billion as per the description of ONS 2018 data.
Basically, amount of organization offered accommodation and food services
activities in UK have developed by just under almost 20% in last five years which
have to reached up to 202, 060 and up from 169,235 of 2015.
In fact, almost 330.000 staffs are working in UK hospitality industry as
per the current YouGov poll. Furthermore, this assessment shows that amount of
people performing in this sector get maximized by almost 409,000 in previous
five years (Edith Hancock, 2018). Hence, this shows that international economy
also gets changed with the implementation of large multinational organization at
marketplace. This will be beneficial for entire globe in various manner such as;
increase in employment opportunity, reduction in poor people and many more
things get changed.
Global growth, use of franchising and
licensing agreements influence the
development of hospitality industry
Global growth is really advantageous for hospitality industry and plays
a major contribution in overall economic growth because increase in
employment opportunity automatically enhances the income level of
nations. As a result, this will encourage businesses for coming up with
more and more new ideas by establishing distinct business with the use
of franchise and acquired license for running new organizations. For
example; number of new restaurants are emerging and acquired
franchising from Macdonald for running products of this famous
brand. At the same time, alcohol licenses are also acquired by lots of
successful enterprises for running famous pubs and bars in their hotel.
As a result, this will automatically improves the economic growth as
well as developed hospitality industry due to the establishment of
various business organizations.
Edith Hancock, 2018. [Online]. Available through < https://www.thedrinksbusiness.com/2018/06/uk-hospitality-sector-could-be-worth-100-billion-by-
the-end-of-2018-despite-closures-and-staff-shortages />.
Blomme, R.J., Van Rheede, A. and Tromp, D.M., 2010. Work-family conflict as a cause for turnover intentions in the hospitality industry. Tourism and
Hospitality Research, 10(4), pp.269-285.
Mowforth, M. and Munt, I., 2015. Tourism and sustainability: Development, globalisation and new tourism in the third world. Routledge.
References
Hospitality industry contributes to local,
national and global economy