The Contemporary Hospitality Industry

This report provides an overview of the hospitality industry, including different types of businesses, operational roles, and skills required. It also discusses the contribution of the industry to the local, national, and international economy.

THE
CONTEMPORARY
HOSPITALITY
INDUSTRY
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TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of business within the hospitality industry....................................................3
P2 Range of operational and functional department of NH Hotel Group...................................4
P3 Contribution of the hospitality industry to local, national and international economics........5
TASK 2............................................................................................................................................6
P4 Range of different operational roles within the industry........................................................6
P5 Skills required for roles within the hospitality industry and current skills shortage..............7
TASK 3 & TASK 4..........................................................................................................................8
Covered in PPT............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
The hospitality industry is defined as a section which includes a wider service industry and
focuses on providing services related to leisure, instead of basic needs. The functions that
hospitality industry primarily includes are addressing the customer needs and satisfaction such as
travel arrangements, lodging and amenities (Ann and Blum, 2020).
In context with this report, the company which will be taken into consideration is NH Hotel
Group, which is a multinational hotel company established in the year 1978 and currently it has
over 350 hotels and operating in around 28 countries. Following report will include the current
structure, scope and size of the hospitality industry. Moreover, current and anticipated skills
required in the hospitality industry for operating its functions smoothly is included in this report.
Apart from this, both internal as well as external factors which can have an impact in the
hospitality industry and how these can be relate with the issues of the same in mentioned in this
report. Lastly, current and potential trends and developments that is affecting the hospitality
industry is incorporated in the assignment. Therefore, it can be said that this report includes an
overall view of hospitality industry and how other factors has an effect on the same.
TASK 1
P1 Different types of business within the hospitality industry
In the hospitality industry, there are many components or segmentations that work for
providing immense satisfaction to its guests. Thus, companies with the help of consumer centred
approach tries to provide effective services so that they can maintained a long-term
sustainability. With the ability of having a broad area, there are various types of business that are
operated under the hospitality industry and to understand this better it has been explained with
the help of points mentioned below:
Travel and Tourism: this is the one of the most important components of the hospitality
industry. The basic function of this segment is to provide the services related to transit and
computation facilities by the guests (Bavik, 2020). Thus, travel and tourism annually provide
over 600 million people with an opportunity to travel from one place to another and has become
one of the largest industries throughout the world and eventually supports the economic and
social growth of a nation. Therefore, NH Hotel Group is playing its part and providing its
customers with variety of services and facilities.
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Accommodation: This is a part of hospitality industry and if precisely speaking, it comes
under travel and tourism. Basically, under this, accommodation provides with a variety of
services like catering, better options for overnight staying etc., according to the budgets and
requirements. Moreover, this can be further classified into hotels, shared accommodations,
hostels, camping and many more.
Lodging: Hospitality industry, mainly includes the services that are related to hotels,
providing breakfasts, motels and many other. But, while talking about lodging, it is a short-term
dwelling in which renting are provided for a short period of time. Thus, this feature is
incorporated by those customers who are required to travel a lot and most of the time stay away
from homes. Therefore, there basic concern is about safety and security. Moreover, it becomes
important for NH Hotel Group, to provide appropriate services according to the customer’s
satisfaction (Chang and Busser, 2020).
Food and Beverages: This is the basic need of a human being and it is the prime role of
companies who are under hospitality industry to carters the needs and requirements of customers.
This includes an array of different options to customers in the form of restaurants: it is
considered as a business unit, provides with food and drinks that are prominently eaten on the
premises and this can be fast food restaurants or a takeaway. Bars & Cafes: this provides with
an opportunity to customers to relaxing environment. However, in Bars, alcoholic drinks and soft
drinks are being sold whereas, in cafes, hot drinks along with light snacks are provided. Thus,
both the place provides with an environment where people can socialise.
P2 Range of operational and functional department of NH Hotel Group
NH Hotel Group, is one of the multinational hotel company which is operating its business
across the globe. The company is popularly known for its hotels, resorts, hospitality and other
services both in public as well as private sectors (Li and et. al., 2013). Thus, while talking about
both operational and functional department of the company, they are performing well in
establishing a positive relationship with customers. Moreover, this can be understood from the
points given below:
Operational Departments:
Housekeeping departments: Unlike other companies, this is the most important
department of NH Hotel Group because this department make sure that cleanliness is up to the
mark and guests have a pleasant stay in their hotel. Members of housekeeping has a functional
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area such as lobbies, toilets, hallways, dining areas etc., therefore, they work with a believes to
providing a new sparkling room with every guest arrival.
Front office: In hospitality industry, it is important that how employees working in the
front office greets its guests because this defines the entire image and functionality of the
company whether it is appropriate or not. Front office basically includes reception whose prime
responsibility is to check and fulfil all the requirements of customers. Thus, in context with NH
Hotel Group, they focus more on this segment that is why they are popular in providing a
pleasant stay to its customers.
Functional Departments:
HR Department: In every company the HR department work as a backbone because
most of the functions are based on this department (Liang and et al., 2017). Generally, their
function is to look out for all the management practices so that better services can be provided in
time. Another, important function that are being performed by this department is to provide
appropriate training. For example: NH Hotel Group, after analysing all the factors providing
training of communication skills so that employees can easily interact with their guests.
Finance Department: the prime role of this department is to handle different functions
regarding budget, tax to be payed, profits gained etc., thus, overall, it can be said that the finance
department of the company look after all the budget and what measures can be taken to control
the same.
In relation with NH Hotel Group, both the functional and operational department work in
collaboration and perform their activity for providing better services and facilities to its
customers. There is a proper flow of information which moreover, assist in resolving different
kinds of issues and problems if arises (Modica and et. al., 2020).
P3 Contribution of the hospitality industry to local, national and international economics
In this globalised world, every company do their activity in gaining maximum profits and
moreover, contribute some of its part in the economy of the nation. United Kingdom, has the
world’s largest hospitality industry and comes in 4th position. Along with this, it has provided
with the employment opportunities to person living in that area i.e. around 2.4 million. Over 1,
27, 000 business organisation has opened their business under hospitality industry in United
Kingdom. Therefore, it can be said that hospitality industry directly or indirectly puts an impact
on the economy of the country every year. For example: in the year 2016, is compare with the
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providing job opportunities around 3.2 million direct jobs were given to people and in relation to
indirect job approximately 2.8 million were generated. Thus, both the element helped United
Kingdom in increasing its value in terms of money to 73 billion pounds through direct job
contribution and nearby 87 billion pound through indirect.
Therefore, with a huge impact on the economy of the country whether local, national or
international level so, the hospitality industry cannot be avoided.
TASK 2
P4 Range of different operational roles within the industry
It is obvious that, whatever company, is being established under hospitality industry,
operational roles play an important role in providing customer satisfaction (Mohamed Idris and
et. al., 2020). Moreover, in order to provide an effective services and facilities operations
management divide the task thus, performing the action becomes easier. Some of the operational
roles are explained below for better understanding.
Housekeeping: the prime role of this section is to keep the rooms and entire premises such
as common areas, lobbies, rest rooms of hotel clean and tidy. Thus, they try to make everything
clean once the guest leaves or enter the room. Thus, it can be said that the prime function of
housekeeping is to always maintain the high standards of cleanliness. Therefore, NH Hotel
Group, should aim towards providing excellent services and facilities so as to attract a large
number of populations.
Sales and Marketing: Every organisation, whether small, medium or large operates its
business to get maximum profits and for this, it is important that they have proper marketing
strategies. Marketing and sales can be linked with one another because if the marketing strategy
will be appropriate than sales will definitely increase and if not then vice-versa. Moreover, while
talking about NH Hotel Group, they are using appropriate marketing tools and as a result, getting
success in attracting more and more customers even in off seasons as well (Neuhofer, Buhalis
and Ladkin, 2013).
Front office: In context with NH Hotel Group, they have an appropriate front service and
as an operational role they are doing their best. The executive of the front desk has the leverage
to have a direct connection with the its guests or customers. Besides this, with a better workforce
company understands the behavioural conducts and provide the services effectively.
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P5 Skills required for roles within the hospitality industry and current skills shortage
In order to perform well in the market area or within the organisation, it is important that an
individual possess certain skills which can further help the individual in executing the task in an
effective manner. Therefore, in this context some of the skills that are required for the roles
within the hospitality industry are as follows:
Communication Skills: In terms of interacting with one another, this is the basic skill
which plays a crucial role and in the hospitality industry it is important that the person has
mastered in this. Reason behind this is that, with a proper communication skill one can be able to
address the problem of guest if they are facing any (Andrews, 2013).
Team Work: Hospitality industry, sometimes comes with a lot of pressure and in order to
manage this it is important that company has an effective team and they agree to work under
single umbrella. As a result, this can further help on achieving the goals and objectives in a better
manner. A team work require that every individual has the tendency of listening to the views and
thoughts of others. For example: Head Managers of NH Hotel Group, while allocating the task
by the different departments come together and perform the activity and achieving the aims and
objectives becomes easier.
Multi-Tasking: Although, hospitality industry gives different kinds of training to an
individual in the earlier phase of the job so, in difficult conditions employees doesn’t fee
hesitated and do the work properly. But if an individual possesses this skill even before
providing training than it adds a plus point for the company. Therefore, resolving issues becomes
easier determining whatever the circumstances is (Clifton, 2019).
Proper Attention: Work in hospitality industry requires a precise work which means
whatever things are being delivered should be perfect and in order to do this happen it becomes
crucial that employees pay attention to every minor thing. For example: There can be a
possibility that people who has come as a guest have different types of requirements so
considering their needs and demands employee should fulfilled in exact same manner which the
customers have to do. As a result, it will help in maintaining a better relationship with the clients.
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TASK 3 & TASK 4
Covered in PPT
CONCLUSION
From the above report, it can be concluded that, hospitality industry not only provides with
the services and facilities but also puts an impact on the economy of the nation. Hospitality
industry includes a variety of components such as food and beverages, accommodation, lodging
etc., furthermore, the report includes the activities of operational and functional departments.
Therefore, SWOT and PESTLE analysis provided with the internal as well as external factors
which states that external factor put an impact on the company’s performance.
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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.
Bavik, A., 2020. A systematic review of the servant leadership literature in management and
hospitality. 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.
Li, L., and et. al.,2013. Learning about managing the business in the hospitality industry. Human
Resource Development Quarterly. 24(4). pp.525-559.
Liang, T. L., and et al.,2017. Transformational leadership and employee voices in the hospitality
industry. International Journal of Contemporary Hospitality Management.
Modica, P. D., and et. al., 2020. Consumer perceptions towards sustainable supply chain
practices in the hospitality industry. Current Issues in Tourism. 23(3). pp.358-375.
Mohamed Idris, A. K., and et. al., 2020. An overview of service quality towards guest’s
satisfaction in hospitality industry. ESTEEM Journal of Social Sciences and
Humanities, 4, pp.196-202.
Neuhofer, B., Buhalis, D. and Ladkin, A., 2013. High tech for high touch experiences: A case
study from the hospitality industry. In Information and Communication Technologies
in Tourism 2013 (pp. 290-301). Springer, Berlin, Heidelberg.
Andrews, S., 2013. Hotel housekeeping: A training manual. Tata McGraw-Hill Education.
Clifton, D., 2019. Hospitality Security: Managing Security in Today's Hotel, Lodging,
Entertainment, and Tourism Environment. CRC Press.
Kotsaga, E., 2015. Cross-cultural training as critical factor of cultural intelligence in the
hospitality industry. Tourismos. 10(2). pp.213-222.
Lolli, J. C., 2013. Interpersonal communication skills and the young hospitality leader: Are they
prepared?. International journal of hospitality management. 32. pp.295-298.
Martinez, M. G. ed., 2013. Open innovation in the food and beverage industry. Elsevier.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
Rok, M., 2012. Labour Market Sk ill Deficiencies in the Tourism and Hospitality Industry. Naše
gospodarstvo/Our economy. 58(3-4). pp.80-87.
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
Eid, R. and El-Gohary, H., 2015. Muslim tourist perceived value in the hospitality and tourism
industry. Journal of Travel Research. 54(6). pp.774-787.
Eid, R., 2015. Integrating Muslim customer perceived value, satisfaction, loyalty and retention in
the tourism industry: An empirical study. International Journal of Tourism
Research.17(3). pp.249-260.
García-Villaverde, P. M., 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.
Kotler, P., and. et. al., 2017. Marketing for hospitality and tourism.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent trends
and future directions. Journal of Travel & Tourism Marketing.32(5). pp.608-621.
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Singal, M., 2015. How is the hospitality and tourism industry different? An empirical test of
some structural characteristics. International Journal of Hospitality Management.47.
pp.116-119.
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