The Contemporary Hospitality Industry

This report explores the different types of business within the hospitality industry, the operational and functional departments within a chosen hospitality business, the contribution of the hospitality industry to economies, the interrelationships within a chosen hospitality business, the influence of franchising and licensing agreements, the impact of global growth on the economic worth of the hospitality industry, the different operational roles within the hospitality industry, the skills required for these roles, and the skills gaps within the industry. The report focuses on Hilton as a case study.

Unit 1- The Contemporary
Hospitality Industry

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explore a number of different types of business within the hospitality industry and the diverse
products and services that they offer......................................................................................1
Examine a range of operational and functional departments within a chosen hospitality
business...................................................................................................................................2
Discuss the contribution of the hospitality industry to local, national and international
economies...............................................................................................................................3
Review the interrelationships of the operational and functional units within a chosen
hospitality business.................................................................................................................3
Assess how the use of franchising and licensing agreements has influenced the global
development of the hospitality industry.................................................................................4
Analyse how global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry............................................................................4
Investigate a range of different operational roles within the hospitality industry..................5
Examine the skills required for roles within the hospitality industry and current skills
shortages.................................................................................................................................5
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles.....................................................................................................................6
Analyse the impact that skills gaps have on hospitality businesses and make valid solutions
for addressing these skills gaps..............................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The hospitality industry is the one that provide the better care and luxury to the customers so
as to facilitate the experience of visitors. It is the industry that includes the restaurants, hotels,
amusement parks, events, cruises, casinos, entertainment, and other tourism-related services and
didn’t have only based on the business welfare but also consist the welfare of economy,
employee, customer taste and lifestyle as well (Afsar, 2018). This report is based on Hilton as it
is the flagship of largest hotel brand all across the world and has targeted to both leisure
travellers and business in the major city centre, convention centres, near airport, popular vacation
destinations. This report is concern about the different types of business, range of operational and
functional department, contribution of hospitality industry, use of franchising and licensing
agreement, skills required and impact of skill gap.
MAIN BODY
Explore a number of different types of business within the hospitality industry and the diverse
products and services that they offer
As the hospitality industry includes the different type of business so as to deal with the
satisfaction of customer and focused to meet the leisure instead of the basic ones and is as
defined below as:
Food and Beverages: It is the business that considers the largest segment of the
hospitality and provides the meal to the customers and comprise of snacks, meals, beverage as
per the on time consumption on and off the premises.
Travel and tourism: It is the business that deals with the moving of people from one
place to another as from the bus, train, air, ship etc. In leisure travel is when an individual invest
in the food, recreational and food as to enjoy the vacation trip that might be related to the
personal or professional (Baum, 2019).
Lodging: It is related to accommodation services in which an individual need a place to
get spend a night for to sleep and it includes the elder hostels, fancy hotel, youth hostel, motels
etc. It is the business that targets the market as like business, leisure, budget travellers and gets
worked with airlines and government.
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Recreation: It is a business that includes the services for the rest, enjoyment and
relaxation and work with the motive to refresh the mindset of the people. It includes the
entertainment as provides the movie and theatre shows, museums, zoo, sports participatory etc.
Examine a range of operational and functional departments within a chosen hospitality business
Operational and functional are responsible to get ensure that the different orders were get
schedule as per the demand of customers. The both the department have manage the production,
manufacturing syncing as per the assigned timeline with that manage the market availability by
perform the adequate delivery of the goods and services (Boella, 2019). In Hilton hotel, the
operational and functional department has a link with the front and back office that is as define
below as:
(Source: Functions and Divisions, 2019)
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Illustrat
ion 1: Functions and Divisions

Front house operation department: It is a department that perform the different
operation as like housekeeping, front office, reservation in Hilton. They have directly dealt with
the customers and have work with effective communication skills thus have attracted the
customers towards the hospitality (Hassi, 2019). In this the functional department has perform
the sales and marketing of the bars, conferencing, room services, restaurants, lounges and
banquets of Hilton.
Back house operation department: It is a department that concern about the accounting,
human resource management and engineering and in this the HRM have hired the most skilled
and talented employee by which business attains its goals with more perfection. They have also
ensured that the adequate policy and strategy get developed so as to manage the transparency in
between the working operations. In this the functional unit ensure that the hygiene will get
maintain in the hotel whereas in engineering the better infrastructure gets maintained and the
accounting has managed the debit and credit sales of the hotel so as to manage the profit and
loss.
Discuss the contribution of the hospitality industry to local, national and international economies
In today’s scenario the people are more likely to get travel and with this the hospitality
sector has been facing a tremendous growth and development. The hospitality industry has
contributes the better part as in the development of the economy of the country as by fulfil the
demand and need of the customer by providing the better and quality services. In UK there is the
rapid growth as it is the sector that provide the largest employment to the local people and have
provide the job to 2.4 million individuals and around 1.2 million jobs by the 170,000 start-up
business and with this have generate the revenue of £90billion with £34billion is contribute
through taxing (Economic Contribution of UK hospitality industry, 2019) and in this the
restaurant VAT also generate the job of about 54000. In addition the employment will raise out
the living standard of the people and lead the collective development. In this the international
tourism also make the contribution towards the UK economy as travel by air lead more profit
that help to raise the economic stability (Horng, 2018).
Review the interrelationships of the operational and functional units within a chosen hospitality
business
The interrelationship in between the operational and functional units of Hilton hotel must
get influenced the working behaviour and profitability of the customers as in this the operation
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unit have made the decision while making the interaction with functional unit about the different
activities as like management of front office, manufacturing, production etc so as to gain the
target in timely basis that drives the continuous success and development. They have both
manage the financial, production, office, legal, operation and marketing by which all the
functions of the business get worked done with more perfection (Huertas-Valdivia, 2018). The
operation unit have plan, direct, organise, implement and control the entire task and resources by
which the production cost get decreases and more profit will get attained.
Assess how the use of franchising and licensing agreements has influenced the global
development of the hospitality industry
The franchising is the process through with the franchiser provides the right to operate
the business model whereas in licensing the licenser will provide the license to the licensee and
with this they could furthermore used the brand name and image to develop better sales. The
international franchising and licensing is a strategic process to get reduces the dependence on the
domestic growth by which future revenue and more profit get generate at worldwide level. It
involves the less risk, minimum investments that scale up the working potentials with more
effectiveness. The more of the company expend their business at global level and with this have
measure the continuous growth and in this franchising and licensing provides the easy and
smooth flaw of services and also help to manage the streamline process.
Analyse how global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry
The hospitality industry generate the greatest revenue as from the local economy as per the
investment of the travellers in terms of hotels, restaurants, entertainment etc. The travel stimulate
the infrastructure development as like the advancement of the roads, public transportation,
building etc with this also generate the better amount of job opportunity as well. In this the
development of licensing and franchising plays the vital role as it provides the easiest platform to
manage the business at new place with effective streamline process with that better sales get
generate that helps to make the global growth (Jones, 2019). In this the business get spend to the
place as from where they get the better revenue thus the country that they have select to proceed
with the business have to work with all the legalities and have fill the tax rates as well by which
effective growth of the country economy will get developed.
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Investigate a range of different operational roles within the hospitality industry
The hospitality industry has worked with the different operational roles and that all is to
provide the sufficient care and development to the customers. There are some different range of
various operational roles of Hilton is as defines below as:
Housekeeping: It is the unit that manage the better cleaning and maintenance by which
the surround will remain more clear and healthy as it is always be the priority of the business and
with this have control the linen of the conference, banquet, fitness centre as well (Kallmuenzer,
2018).
Sales and Marketing: It is the unit that work to get attract more and more customers and
visitors within the business and with that develop different strategy through which the larger
market will get targeted that helps to gain the better competitive advantage with more perfection.
The manager of Hilton has conduct the campaigns and content marketing that helps to take the
attention of customers and lead direct development of the business.
Front desk facilities: It is a unit of Hilton hotel that get interact with the visitor and
reflect the value, belief and image of the business so as manage the reservation and booking of
visitors. In addition also try to resolve the different queries of the visitor in time by which the
employee feel more comfort and flexible while working in the hotel.
Examine the skills required for roles within the hospitality industry and current skills shortages
There are different department that get worked within the Hilton hotel and as per that it is
needed that the business have worked with the employee that has better skills and have some
shortage as well that are as define below as:
Flexibility skills: It is the skills that help to manage the demand of the customer that
belong from different places and also while working with the diverse range of employees
(Kandampully, 2018). It is more requires as it help to make the better understanding about the
need of the customer such that satisfied services get provided to them.
Language skills: It is also require in which the employee must known the different
language to manage the customer of different background so as to make effectual understanding
as it is the skills that is in shortage and Hilton must require the employee that know more
language.
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Communication skills: It is a skill that is needed while understanding about the
requirement of the customer and with this the better interaction get conceived so that all the
complexity will get reduce and smooth services get flowed.
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles
There is the wider range of different operational roles within the Hilton as per the skills
gap that is as define below as:
Executives: They have take the different decision so as to make the effective growth of
business and the skills gap is that they need to be more volatile and ambiguous that impart the
obviousness within the business (Kim, 2018).
Front desk service: They have made the continuous interaction with the guest and have
responsible to take and hold the booking and they must have recognise the need of the customer
and supply that need to the other department with more clarity by which they further manage the
different requirement as on time.
Housekeeping: They ensure that the room and area always remain more clean and tidy
and have responsible to maintain the cleanliness in the surround. They must have work with
more time management skills thus have control the task on timely basis.
Analyse the impact that skills gaps have on hospitality businesses and make valid solutions for
addressing these skills gaps
The skill gap will enhance the chances of failure and also increases the complexity within
the Hilton and having the huge impact on the business processing. In this it is needed that the
learning about the skill gap in needed by which it the gap get identify about that the management
provide the training and maintain focus on the competitors so as to inject the new skills and
always get embrace the continuous learning that emphasis the working style and reduces the gap
(Mejia, 2018).
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CONCLUSION
It has been concluded that the hospitality industry must work within the different types
and all are worked to satisfy the demand and requirement of the customers. It is the industry that
have work with the more department and all the unit have performed their function with more
clarity by which attain better success. It is the sector that has more contribution in the success
and development of the economy of the country with that have manages the skills gap to resolve
the different complex situations.
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REFERENCES
Books and Journals
Afsar, B. and et. al., 2018. Frontline employees’ high-performance work practices, trust in
supervisor, job-embeddedness and turnover intentions in hospitality industry.
International Journal of Contemporary Hospitality Management.
Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal of
Contemporary Hospitality Management.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Hassi, A., 2019. Empowering leadership and management innovation in the hospitality industry
context. International Journal of Contemporary Hospitality Management.
Horng, J.S. and et. al., 2018. Developing a sustainable service innovation framework for the
hospitality industry. International Journal of Contemporary Hospitality Management.
Huertas-Valdivia, I. and et. al., 2018. Achieving engagement among hospitality employees: A
serial mediation model. International Journal of Contemporary Hospitality Management.
Jones, P. and Wynn, M.G., 2019. The circular economy, natural capital and resilience in tourism
and hospitality. International Journal of Contemporary Hospitality Management.
Kallmuenzer, A., 2018. Exploring drivers of innovation in hospitality family firms. International
Journal of Contemporary Hospitality Management.
Kandampully, J. and et. al., 2018. Customer experience management in hospitality. International
Journal of Contemporary Hospitality Management.
Kim, H.L. and et. al., 2018. The effects of corporate social responsibility (CSR) on employee
well-being in the hospitality industry. International Journal of Contemporary Hospitality
Management.
Mejia, C. and Torres, E.N., 2018. Implementation and normalization process of asynchronous
video interviewing practices in the hospitality industry. International Journal of
Contemporary Hospitality Management.
ONLINE
Economic Contribution of UK hospitality industry. 2019. [Online]. Available Through:
<https://www.oxfordeconomics.com/my-oxford/projects/296333>.
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