The Contemporary Hospitality Industry

This report provides an overview of the hospitality industry, including types of businesses, the relationship between functional and operational departments, and the industry's contribution to the global economy. It also discusses various operational roles and necessary skills within the industry.

UNIT 1 - THE
CONTEMPORARY
HOSPITALITY INDUSTRY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO1..................................................................................................................................................3
P1 Types of businesses in hospitality industry............................................................................3
P2 Relation between functional and operational departments.....................................................4
P3 Contribution of hospitality to global economy.......................................................................5
LO2..................................................................................................................................................7
P4 Various operational roles........................................................................................................7
P5 Necessary skills within hospitality industry...........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is the field which mainly includes various services and products like
lodging, food and beverages, entertainment etc. The main purpose of this report is to understand
the hospitality industry and then analyze the functions and various aspects of Grand Hotel.
Grand Hotel is a full-service hotel which was in 1998 and headquartered in Eastbourne,
England. This is basically 5 star hotel and is also known by the name “White Palace”.
This report gives a brief overview of types of businesses in hospitality industry, relation
between functional and operational departments, contribution of hospitality to global economy,
various operational roles and necessary skills within hospitality industry.
MAIN BODY
LO1
P1 Types of businesses in hospitality industry
There are generally wide range of the sectors as well as business within the hospitality industry
which have their own purpose and objective.
Restaurants
Restaurants are basically the business which prepares as well as serves foods and drunks
to the customers. The major purpose of the restaurants are to provide the different types of food
items to the customers in order to attract them (Mattila and Gao, 2016).
Pubs
Pubs are primarily the business and establishments for sale of the beer as well as other
drinks for the consumption on premises. The main objective of pubs is to provide the leisure and
relax experiences to the customers where people can enjoy with their friends on weekends.
Nightclubs

Nightclubs are primarily the entertainment venue which provides a wide range of
entertainment facilities to the people like disco, live music etc. The major purpose of this is to
encourage temporary communities to come together and act out their fantasies (Marasco and
et.al.,2018).
These different types of business as well as sectors within the hospitality industry offer
varied range of products and services according to the needs of customers.
Accommodation
Accommodation is the intangible service which is being offered by different hotels and
resorts. These mainly corresponds to providing the sheltered provision especially the well-
equipped rooms for a definite amount of fee.
Food & beverages
These are the another most common type of products which are offered by wide range of
the businesses. Food and beverages are mainly the tangible products which are provided by each
and every sector within hospitality ranging from small to pub to large lounges (Chung and
D’Annunzio-Green, 2018).
M1
The operational and functional departments share a great relation and thus complement
each other. For example- the front office department coordinates with HR department regarding
the job related applications. On the other hand, HR recruits skilled employees for front office.
P2 Relation between functional and operational departments
The hospitality industry consists of large number of departments which are categorized
into two operational and functional departments. Both the departments have great coordination
and works in collaboration with each other in order to achieve the organizational goals.
Front office and HR
Front office department is one of the major operational department while on the other
hand HR department is an important functional department. Both the department works in

collaboration with each other where on one side, front office is responsible for screening the
candidates who comes for interview. For example- In hotel Grand, while HR department helps
front office department by employing the relented employees while latter helps HR department
by screening the candidates which they find suitable for job (Lopes, 2016).
Food and beverage and marketing department
F & B is the another highly fundamental operational department and marketing forms the
core functional departments within hotels. The coordination between both the departments is
highly essential for smooth functioning of the hotels and they complement each other and every
possible manner. For example- In hotel Grand, F & B personnel are responsible for making
necessary arrangements and preparation for the guests .While on the other hand, marketing
department, help the latter one by promoting and advertising their good quality food and
compliance to food standards which eventually increases job responsibilities of F&B.
M2
Franchising basically has helped in the growth of hospitality industry. This has enabled
the hotels to make proper utilization of their financials and human power of franchisees. Besides
this, licensing agreement has enabled the hotels in their expansion and has helped them to
enlarge their customer base (Altinay and Taheri, 2019).
P3 Contribution of hospitality to global economy
The advent of technology has gives a boost to the hospitality industry which has made this
industry a rapidly expanding one. The hospitality industry is growing at a rapid pace and thus
contributes to the overall 10% of GDP. Talking on the national level, hospitality industry is
mainly promoting itself within multicultural environment. At the national level, hospitality
industry helps to increase the economy of the country and hence contributes to a great extent
towards GDP. For example- the hotel Grand in the past few years have contributed towards the
national economy by expanding itself in various product lines which eventually increases the
spending of tourists (Madera and et.al.,2017).
Speaking of the international level, hospitality industry mainly contributes towards GDP
of the country. When people visits the different county then they tend to spend a large amount of

money on various facilities like hotels, convenience, food and beverage, pubs etc. This
eventually results on the incoming of foreign currency in country and thus increases overall GDP
of country. For example- hotle Grand charges high price for its various services like
accommodation and thus contributes in increasing GDP of country.
Not only at the international level, but hospitality industry also contributes towards the
local economies. For example- hotel Grand in the last few months have recruited more than 2000
employees across the world and thus has eventually raised the employment ration of country.
Basically, hospitality industry step forward for the local economy by providing employment to
the local community and thus this eventually increases the employment ratio of the county.
Besides this, various hotels also spend a much amount on the infrastructure of country like roads,
public transportation which also contributes towards the local economy (Mattila and Gao, 2016).
D1
Franchising is basically where franchisor provides the right to franchisee for using the
products and services. This franchise has enabled the hospitality industry to expand as due to
this, hotels are able to take their products and services to international market at much low cost.
Besides this, licensing agreement has allowed hotels to sell their products into defined target
market for which the licensor changes a fee. These both have contributed towards the global
growth as it results in inflow of the foreign currency from target market (Chung and
D’Annunzio-Green, 2018).
LO2
P4 Various operational roles
There are generally a large number of operational departments which exists within the
hospitality industry. Each of the department has their own roles and responsibilities.
Front line managers
This is one of the major operational role which forms the core strength of the hotels. The
major role of front line managers in hotel Grand is to ensure that front office is working
appropriately. They make sure that the front office employees satisfy the needs and wants of

guests and plays the role of great leader. Besides this, the major responsibilities of the front line
manager managing as well as training the front office staff and inculcating the right blend of
skills and capabilities within them. Another responsibility of manager in Grand is to deal with
the guests and arrange various staffing schedule (Lopes, 2016).
Hotel supervisors
Hotel supervisor is one of the another operational role which mainly corresponds to the
semi-skilled positions. The main role of hotel supervisor for example in hotel Grand palace is to
assist manager of hotel operations with various management tasks. Along with this, they are also
responsible for supervising the front desk operations like check-in, check-out, attending calls etc.
The major ole which they play is managing the hotel staff as well as delegating the tasks and
that’s why thus is regarded as semi-skilled or skilled position (Altinay and Taheri, 2019).
Housekeeping
House keeping is mainly related with performing the duties related with cleaning,
maintenance etc. This is the role which calls for unskilled workers and thus is regarded as
unskilled position. The employees working in housekeeping department in hotel Grand are either
partly educated or uneducated and their major role is to marinating the cleanliness of the various
areas of hotels like rooms, back area, surrounding etc. They are responsible for providing the
desirable rooms to guests by taking care of the presence of various supplies like towels, soaps
and of cleanliness.
P5 Necessary skills within hospitality industry
For performing the various operational as well as functional roles, a large number of
skills are required in order to achieve the organizational goals. Some of the skills which needs to
be present within employees are
Customer handling
This is the foremost skill which needs to be present within the employees and basically
corresponds to dealing with customers in an effective manner. For example- in hotel Grand,
employees especially front office should have the ability to deal with the problems of customers

and provide a well-through solution to them. After all, a happy customer is a gem for hotel
(Madera and et.al.,2017).
Team working
This is the most effective as well as important skill which employees and management in
hotels should have. Each and every organization calls for working in a team as this helps in
establishing the clear communication lines. For example- employees in hotel Grand are provided
with effective training to work in team as this eventually help in greater coordination with the
guests.
Although there are a range of skills which are needed for the smooth function of hotels,
hospitality industry mainly faces the biggest problem of shortage as well as gap in the skill set.
The major skills which are required in the hospitality are team working, cultural awareness,
customer handling etc. Today, hotel Grand finds it hard to recruit the talented and experienced
employees due to lack of the skills. The major reason behind this skill shortage is the political
landscape. Due to this, many youngsters remain unemployed and thus they do not possess the
necessary skills. This eventually affects the market position and guests experiences of hotel
Grand (Marasco and et.al.,2018).
M3
There has been a great skill gap in hospitality industry in terms of the skills which are
required for performing operational roles. For example- people now likes to work in isolation
and thus lack the most important skill which is team work. This gap in their current skill and
required skill affects the hotels in negative way.
D2
The skill gap basically has a large impact upon organizations. For example- one of the
most important skill required within employees is customer handling. It is highly essential for
employees to deal with the problems of customers and solve their queries. If the employees are
not highly trained with this skill then this will eventually affect the customer base. The unhappy
customer will not prefer to visit the hotel again and will affect their revenue ratio (Altinay and
Taheri, 2019).

LO3 & LO4 covered in ppt
CONCLUSION
It has been summarized that there are various kinds of business as well as sectors within
hospitality and each one of the business offers varied range of products as well as services. These
different types of business contribute to a great extent towards the global economy. Besides this,
there are various operational as well as functional departments within the hotels which work in
coordination with each other like F&B, HR, Marketing etc. The hospitality industry contributes
to a large extent towards local and international economy. Apart from this, there are various
operational roles within the hospitality industry like front office etc which have their own
responsibilities. At the end, there are different skills which are required within this industry like
team working, customer handling etc and its shortage affects the organization in negative way.

REFERENCES
Books & Journals
Altinay, L. and Taheri, B., 2019. Emerging themes and theories in the sharing economy: a
critical note for hospitality and tourism. International Journal of Contemporary
Hospitality Management.
Chung, K.L. and D’Annunzio-Green, N., 2018. Talent management practices in small-and
medium-sized enterprises in the hospitality sector. Worldwide Hospitality and Tourism
Themes.
Lopes, M., 2016. The hospitality industry (Doctoral dissertation).
Madera, J.M and et.al.,2017. Strategic human resources management research in hospitality and
tourism. International Journal of Contemporary Hospitality Management.
Marasco, A and et.al.,2018. Collaborative innovation in tourism and hospitality: a systematic
review of the literature. International Journal of Contemporary Hospitality Management.
Mattila, A.S. and Gao, Y., 2016. An examination of popular pricing and price framing
techniques in the hospitality industry and directions for future research. International
Journal of Revenue Management.9(2-3). pp.175-185.