Unit 1 - The Contemporary Hospitality Industry

This document provides an overview of the contemporary hospitality industry, including the types of businesses, operational and functional departments within Grosvenor House London, contribution to economies, operational roles, necessary skills, and a PESTLE and SWOT analysis of Grosvenor House London.

Unit 1 - The Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Investigate various types of businesses in hospitality industry........................................1
P2. Range of operational and functional departments within Grosvenor...............................3
P3. Contribution of international, national and local economies...........................................4
P4. Different operational roles within hospitality sector........................................................4
P5. Skills necessary for roles in hospitality sector and deficiency of current skills...............5
P6. PESTLE analysis of Grosvenor House London...............................................................5
P7. SWOT analysis of Grosvenor House London..................................................................6
P8. Comprehensibility of the current trends within the confines of hospitality sector..........8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is one of the fastest and leading industrial sector which is engaged in the
activities related to lodging, boarding, accommodation, recreation, restaurant, sightseeing,
transportation, bar, club and more. These services are provided by organisations engaged in
hospitality sector satisfy large base of consumer needs in highly qualitative manner. By taking
advantage of consumers centred approach entities involved in this sector conduct their operations
with an aim to gain more positive results. Main focus of hospitality entities is to provide
immense amount of satisfaction to consumers in order to increase their overall profitability
value.
Present report is conducted on Grosvenor House London headquartered in London
United Kingdom and was opened in the year 1929. This hotel is operating their business
activities with the purpose to deliver maximum satisfaction to consumers. In this report
formative discussion has been made on different form of businesses within hospitality industry
with diverse range of functional and operational department in respective organisation. In
addition to this report include national, international and local economic contribution and skills
that are necessary for the role in hospitality sector. Lastly industry report pestle and SWOT
analysis in order to evaluate potential and current trends that are impacting upon this sector.
P1. Investigate various types of businesses in hospitality industry
Hospitality industrial sector is a wide segment in which diverse range of function activities
are included that aim towards fulfilling consumer needs and demands with high quality services.
In this organisations in this industry provide comfort and convenience to customers in effective
manner. It has been identified that there are different form of businesses operating their functions
in hospitality industry those who drive consumer satisfaction. Some of the businesses are being
defined below:
Travel and tourism:
This organisation in hospitality industry engages in the services of providing computation
and transit facility to customers. In this different type of travelling mode are included like train,
flight, road, ship etc. It has been provided that this entity in respective industrial sector
significantly contributes their maximum contribution in economy of United Kingdom along with
offering high quality services to consumer. Travel and tourism is the most important part of
hospitality sector through which basic demands as well as need of consumers are fulfilled.
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Lodging:
This aspect within hospitality industry business mainly includes services like breakfast,
motels, hotels and more. Services in this are mainly for short span of time to provide satisfaction
experience to consumer. In this services are being provided as per according to the consumer
preferences and demand during their stay in premises of organisation. It has been evaluated that
main concern of organisation in this is to provide proper security and safety measures. In relation
with this Grosvenor effectively make sure that guest in their promises are offered atmosphere
like home in which highly qualitative offerings are being provided to them in order to increase
their satisfaction level towards organisation.
Restaurant:
This organizational pertaining hospitality sector mainly falls under food and beverage
industry. In this main aim is to satisfy consumer demand as well as need by offering them eating
preferences. In this diverse range of segments like eateries, cafes, quick service restaurant, fast
food joint are included. In relation with Grosvenor they offer restaurant to cater food services to
consumers in order to provide them satisfaction.
Pubs / clubs / bars:
It is also an essential aspect of hospitality in which consumer aim towards related to
entertainment are fulfilled in order to offer them comfort as well as relaxation. In this consumer
want to spend their time with family, peer acquaintances in order to fulfil needs of consumers.
Entities in hospitality sector offer stress and worries relieving services to customers. In terms
with Grosvenor by offering wine, cocktails and lightening facility to customers this organisation
offer significant facilities to their consumers.
Memberships and event:
Meeting, conferences, banquets, wedding now a days are significant aspect of hospitality
sector and is evolving by passage of time. In this segment of hospitality industry, entertainment
events, music concerts and more are provided as to offer memorable and qualitative experience
to consumers. In context with Grosvenor in this entity provide different type of conferences
events facilities to provide satisfaction and pleasure to customers. Facilities in this segment are
highly qualitative and fall under affordable price range. Main aim of this is to grab attention of
large base of consumers and ensure their long term liability with organisation in order to sustain
in hospitality industrial sector for long period of time.
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P2. Range of operational and functional departments within Grosvenor
Grosvenor mainly comprise of two different type of business unit that are back house and
front house. In this different type of operational functional departments are included and
significantly contributed in offering satisfaction to consumers in order to increase sustainability
and profitability of organisation. With their highly satisfied services these unit manage daily
basis operations of respective organisation. Mentioned below these two business units are
defined in a descriptive manner:
Front house:
This unit mainly involved operation segment functioning like housekeeping, front office,
reservation within Grosvenor hotel. In this, front house mainly conduct their services related to
having direct conversation with consumers. Thus in this as to perform efficient role high
communication skill is required in order to provide effective services to consumers as to offer
them unique experience. In addition to this, this unit involve functional segments like marketing
and sales that are involved in catering sales. Grosvenor food and beverage unit falls under this
unit and provide services like lodge, conferencing, banqueting, restaurant and bar to customers.
Back house:
This segment mainly includes operations like engineering, accounting and HRM. In this
HRM unit of entity mainly focus on recruiting highly skilled, potential, competent individuals in
order to perform daily basis operations. In addition to this HR unit is also having responsibility
to ensure that food and beverages are being provided to customers in proper hygienic and healthy
manner. While in terms with engineering department this unit is having responsibility to
maintain infrastructure aspect of organisation. Main aim of this unit is to maximize capital needs
that are mainly related with ground maintenance. While on the other hand accounting department
in organisation are associated with the roles of maximizing revenue generation capability of
entity in number of ways. Main motive of their operations is to increase efficiency of entity in
efficient manner and provide satisfactory services to customers in order to maximize company
image in marketplace. In terms with Grosvenor accounting department this unit also have
responsibility to ensure safety and security of consumer as well as employees in order to conduct
organisational operations in effective manner.
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P3. Contribution of international, national and local economies
As per according to the evaluation it has been determined that hospitality industry is
significantly contributing in national economies which can be seen as with the fact that, It is
regarded as the 5th largest sector of UK which provides job opportunity to a total of 2.4 million
individuals. This sector has generated huge revenues equivalent to £90billion (The Local and
Global Importance of the Hospitality Industry. 2019). While on the other hand, if it is talked
about contribution of hospitality in international context, it is one of the fastest growing
industries around the world and has 10% of world’s GDP contribution. In addition to this it also
generates revenue over $550 billion every year. Lastly in term of local economies context it has
been seen that hospitality industry significantly helps smaller local businesses as good
accommodation options encourage more tourists to visit and spend money on businesses within
the area, both small and large and creates thousands of jobs.
P4. Different operational roles within hospitality sector
There are different types of sectors that are conducting their operations in hospitality
segment and have aim to gain maximum opportunities to increase organisation profitability at
greater extent. Along with this, these organisations also offering immense amount of satisfaction
to consumers by offering them high quality services as to manage different type of roles. In this
sector with the assistance of strategies consumer needs and demands can be effectively managed.
There are different forms of operational roles that Grosvenor hotel undertakes.
Housekeeping:
In this process unit manage and maintain organizational sites and surroundings as to
provide comfortable, clean and feasible environment to consumers. This department within hotel
also aid respective organisation to get maximum loyalty from consumers as to provide
consumers with the facilities like banquet hall, fitness care, spa conference of high quality.
Sales and Marketing:
It is most important unit as it engage in the operations of managing organisational overall
sales ratio. In terms with Grosvenor entity manager with the application of marketing schemes,
strategies and programs aim towards maximizing entity share in respective industrial sector. In
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addition to this, sales and marketing department with the assistance of promotional tools and
techniques increase company overall sales in effective way.
Front desk facilities:
This department directly connect with consumers and make positive interaction with guest
on daily basis in order to provide facilities related to bookings. In addition to this unit also
engage in the services of resolving consumer complaints with the assistance of efficient
communication with the help of this Grosvenor maximize their market image and ensure their
long-term sustainability in hospitality.
P5. Skills necessary for roles in hospitality sector and deficiency of current skills
It is seen that every corporate sector is a composite of individuals pertinent to different
national and cultural backgrounds (Ibrahim, Othman and Salim, 2020). In context to this, it has
been evaluated that there are different types of skills that plays important role in success of
organisation. For this, wide range of responsibilities and roles in being undertaken by
organisation which is fulfilled with the help of various skills. Such skills are thus presented as
underneath in context of Grosvenor House London:-
Flexibility skills:
In order to assure higher satisfaction of customers it is essential for Grosvenor House
London to increase adaptability among employees for this entity is required to undertake use of
different strategies and measures for higher growth and success. For more consumer satisfaction
hotel must serve their customers in flexible time hours.
Language skills:
This is an essential skill through which Grosvenor House London can serve large number
of customers from all around the world. Further it has been evaluated that respective entity has
different culture of customers from different places around the world. Thus, this skill facilitates
entity to serve their customers in more advanced manner.
Communication skills:
It is one of the most important skills which is required to be possessed by Grosvenor
House London employees. As with the help of this skill they can serve their customers in better
manner while assuring positive relationship with them. In addition to this, it has been evaluated
that with the help of this skill respective hotel can effectively increase their long term
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profitability as well as productivity in market place and can further assure long term
sustainability.
P6. PESTLE analysis of Grosvenor House London
PESTLE is the external environment screening framework that is widely put to use by the
company in this highly complex corporate world scenario. Thus, the PESTLE analysis of
Grosvenor House London is presented beneath:-
Political factor: The political situations of UK have been quite stable over the course of time.
This presents opportunity to the concerned hotel to increase its revenues as well as profits in a
timely manner. However, a shift in political conditions would imply negative consequences for
Grosvenor House London.
Economical factor: It has been identified that UK has strong economic situations which creates
growth opportunity for Grosvenor House London. This implies that the hotel can leverage the
infrastructure and other facilities of the nation to attain growth.
Social factor: The needs and preferences of people within UK keep on changing. Further,
hospitality is a sector which is largely concerned with keeping customers at the heart (Wang and
Xie, 2020). Thus, the capability of Grosvenor House London to be able to cater to their demands
or not decides whether this factor acts as opportunity or threat.
Technological factor: Grosvenor House London conducts constant market research to identify
latest and emergent technologies which can ease the experience for guests. This inflates thee
growth prospects for the respective hotel.
Environmental factor: Grosvenor House London ensures to make use of sustainable business
practices so as to ensure its sustainability in market place for a considerably long period of time.
This helps the entity in gaining support from customers as well as local community.
Legal factor: It is seen that the management of Grosvenor House London holds sessions
whereby the staff is acquainted with the important laws and legislation pertinent to hospitality
sector. This helps in preventing the hotel from facing any legal consequences in the long term.
P7. SWOT analysis of Grosvenor House London
SWOT can be referred to as a business management tool which is applied by organisation
with a view to gain knowledge of its internal aspects that produce strength, weakness,
opportunity and threat for the entity. By conducting this framework, a company is able to
identify the discrepancies persisting within the confines of the organisation. Looking upon the
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same, the top management of Grosvenor House London has carried out SWOT analysis as
follows:-
Strengths
Strong domestic presence:
Grosvenor House London is dominating the local market place owing to its high quality
offerings and impeccable customer service (Bavik, 2020). It provides its customers with a lavish
experience that helps the entity in gaining repeat sales.
Emphasis on expansion of portfolio:
The primary focus of Grosvenor House London has been upon expanding the product and
service portfolio. This provides assistance to the respective hotel in gaining the attention of large
base of audience from the local market.
Weaknesses
Lack of marketing efforts:
Over the course of time, Grosvenor House London has been quite ineffective in spreading a word
about the organisation within the audience. This implies lower brand recognition in market,
thereby hindering the growth and development prospects of the respective hotel.
Opportunities
Implement latest technologies:
Hospitality sector is regarded to be one of the most rapidly evolving sectors. This is so because
new technologies keep on emerging within the confines of this market place (Chang and Busser,
2020). This presents opportunities to Grosvenor House London to implement sound technologies
and innovation in the hotel premises thereby deriving positive outcomes from it. This will hold
positive influence over the financial performance of the organisation in the long run.
Enter potential marketplaces:
One of the most lucrative opportunities presented to Grosvenor House London is to tap entry into
new and potential markets. This will provide the respective hotel with a chance to enhance its
revenues as well as profits in a rapid course of time. Grosvenor House London can make use of
its resource package to effectively execute this course of action and thereby derive positive
outcomes as a result.
Threats
Excessive rivalry:
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Hospitality sector, especially the hotel sub sector, is composed of a large number of market
players which tend to lead to emergence of extensive rivalry within the market place. In this
relation, it has been identified that Grosvenor House London also faces threat due to presence of
top notch and global players like Marriott International, Hilton, Holiday Inn, Four Seasons
London, etc.
P8. Comprehensibility of the current trends within the confines of hospitality sector
There are various forms of current and potential trends that are prevailing in hospitality
industrial sector (Ann, S. and Blum, 2020). All these factors are required to be effectively
considered by respective organisation in order to ensure maximum competitive advantage. In
context with this all these trends have significant impact upon Grosvenor hotel. In this with the
implementation of different strategies and measures negative impact of factors can be overcome.
 Globalisation act as an essential trend that provide different type of benefits to
organisation in hospitality sector, as it allow entities like Grosvenor to share technology,
labour, resources with other nation and further expand their business operations in order
to maximize their revenue generation capability.
 Other factor which acts as a crucial element for organisations in hospitality sector is
proper security and safety of consumers. As it has been identified that consumer now a
days are more concern towards safe and secure environment. In order to overcome this
factor Grosvenor by installing strong security measures, safety Guards, CCTV cameras in
their premises can provide proper security to their customers. Along with this by
installing emergency equipments like emergency telephones, fire extinguisher at each
door also allow respective entity to provide safe atmosphere to consumers.
 Diversity is also an essential trend that have significantly gain popularity in hospitality
industrial sector, as it allow cross lesson to recruit individual with different talent, skill
and potential from other geographical nations and here is there talent for profitability of
entity.
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CONCLUSION
According to the above mentioned discussion, this has been concluded that hospitality
sector is one of the most evolving industries within the corporate world. In addition to this, it has
been determined that this sector constitutes operational as well as functional departments that
work in sync to obtain favourable outcomes for the company. Apart from this, it is recognised
that there are a number of skills that are necessary for carrying out the roles within the confines
of hospitality sector. Besides this, it is inferred that the organisation has extensive brand name
and value within the concerned sector, providing edge to it over the rival firms. Further, PESTLE
analysis has been taken into account so as to analyse the impact of external environment over the
operations of the business entity.
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REFERENCES
Books and Journals
Ann, S. and Blum, S.C., 2020. Motivating senior employees in the hospitality
industry. International Journal of Contemporary Hospitality Management.
Chang, W. and Busser, J.A., 2020. Hospitality career retention: the role of contextual factors and
thriving at work. International Journal of Contemporary Hospitality Management.
Bavik, A., 2020. A systematic review of the servant leadership literature in management and
hospitality. International Journal of Contemporary Hospitality Management.
Wang, Z. and Xie, Y., 2020. Authentic leadership and employees’ emotional labour in the
hospitality industry. International Journal of Contemporary Hospitality Management.
Modica, P.D., Altinay, L., Farmaki, A., Gursoy, D. and Zenga, M., 2020. Consumer perceptions
towards sustainable supply chain practices in the hospitality industry. Current Issues in
Tourism, 23(3), pp.358-375.
Njoroge, M., Anderson, W., Mossberg, L. and Mbura, O., 2020. Entrepreneurial orientation in
the hospitality industry: evidence from Tanzania. Journal of Entrepreneurship in
Emerging Economies.
Mohamed Idris, A.K., Hashim, N., Nik Mohd Nor, N.M.S. and Faat, F., 2020. An overview of
service quality towards guest’s satisfaction in hospitality industry. ESTEEM Journal of
Social Sciences and Humanities, 4, pp.196-202.
Ibrahim, M.Z.F., Mohd Saber, J., Raja Mustapha, R.I.P., Othman, N. and Salim, A., 2020. Factor
affecting university undergraduates students perception’s toward career enhancement in
hospitality industry: a case of UiTM Penang. ESTEEM Journal of Social Sciences and
Humanities, 4, pp.19-26.
Baum, T. and Hai, N.T.T., 2020. Hospitality, tourism, human rights and the impact of COVID-
19. International Journal of Contemporary Hospitality Management.
Hall, C.M., Razzaq, N.H.A. and Prayag, G., 2020. Introduction to halal hospitality and Islamic
tourism. The Routledge handbook of Halal hospitality and Islamic tourism, pp.1-18.
Robaki, G., Papaioannou, A., Yfantidou, G., Kourtesopoulou, A. and Dalakis, A., 2020.
Organizational Culture and Business Performance in Tourism and Hospitality Industry:
The Case of a Luxury Tourist Resort. In Cultural and Tourism Innovation in the Digital
Era (pp. 533-542). Springer, Cham.
Konovalova, E.E. and Demenev, A.V., 2020. INNOVATIVE APPROACH TO IMPROVING
BUSINESS COMPETENCIES AND MANAGERIAL SKILLS IN TRAINING
PERSONNEL IN THE HOSPITALITY INDUSTRY. Revista TURISMO: Estudos e
Práticas, 9(1)
The Local and Global Importance of the Hospitality Industry. 2019. [Online]. Available
through< https://www.etoncollege.ca/the-local-and-global-importance-of-the-
hospitality-industry>
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