Types of Business in the Hospitality Industry

This report discusses the different types of business in the hospitality industry, such as travel and tourism, food and beverages, accommodation, and recreational and entertainment. It also explores the operational and functional departments within a hotel, including housekeeping, front office, marketing, and human resources. The report further examines the range of operational roles in a hotel and the skills required for these roles. Additionally, it highlights the contribution of the hospitality sector to the local, national, and international economy.

UNIT 1- THE
CONTEMPORARY
HOSPITLITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
P 1 Different types of business in hospitality industry...............................................................3
P 2 Range of operational and functional department..................................................................4
P 3 Contribution of hospitality sector in local, national and international economy..................5
LO 2.................................................................................................................................................6
P 4 Range of operational roles in hotel.......................................................................................6
P 5 Skills required for these role.................................................................................................6
LO 3 and LO 4.................................................................................................................................7
Covered in PPT...........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The hospitality is an industry which includes many different types of business like hotels,
parks, event, cruises, restaurant, casinos, travel and tourism, entertainment and many other
related businesses (Chon and Zoltan, 2019). The hospitality industry is the one includes the
running and operation of all these different types of business. in the current study the hotel
Falmouth Beach hotel is planning to expand in Asia. The current report will analyse the different
types of business in hospitality sector along with operational and functional department chosen.
Also, the discussion will take place on various operational roles in hospitality industry and the
skills required for these roles. Also, the internal and external analysis will also be undertaken to
analyse the competitive position. In the end the consumer trends going on within the company
will be analysed.
LO 1
P 1 Different types of business in hospitality industry
The hospitality is an industry which is very wide and large and includes a wide range of types of
business. thus, there are a number of business which can be operated within the hospitality
industry.
 Travel and tourism- this is a type of business which is engaged in the travelling services
that is assist the people to move from one place to another. This is very essential business
of hospitality as if the people will not be able to travel form one place top another then
they will not be able to travel to other places. This includes services like cabs, plane,
trains, buses, ships and other transport facility (What are the 4 segment of the hospitality
industry? 2020).
 Food and beverages- this is also the most essential business within the whole hospitality
industry as if the food and beverage will not be provided to the traveller then they will
not like this. Thus this segment deals with providing of the food and other related
products so that they can enjoy their trip.
 Accommodation- this is the business which deals with providing of place to the traveller
to live. This is essential as the person travelling to some other country does not have a
place to live thus, here the accommodation business will help (Kandampully,Zhang and

Jaakkola, 2018). This includes the hotels, lodging and other related business which
provides or place to live for the traveller coming to the place.
 Recreational and entertainment- this is another business which is running under the
hospitality industry. This business deals with the entertainment of the travellers and
people going to the other places. Sometime the people go for vacation and leisure time
and for this they need some entertainment and recreational places like park, museums,
sports event and many other related businesses (Arasli, Altinay and Arici, 2020).
P 2 Range of operational and functional department
Within the hotel all the work cannot be completed by a single person or a single department and
because of this there are different operational and functional department within Falmouth Beach
Hotel. The various department within the hotel are as follows-
Operational department
 Housekeeping- this is department within the hotel in which the hotel tries to manage the
cleanliness and the fulfilment of all the need and requirement of the consumer and guest
coming to the hotel. This also includes ensuring that the rooms, lobbies, restroom,
passages, waiting area and all other place within the hotel are cleaned and hygienic
(Operational and functional departments within a hospitality business, 2020). Front office- this is another major important department of operation of the Falmouth
Beach Hotel and its success. This is particularly due to the reason that this is the
department from where the operation of whole hotel is managed. This is due to the fact
that if there is any booking then it is recorded by the front office only. Also, the number
of guest in hotel, their requirement, queries and problem are being addressed by front
office only.
Functional department
 Marketing- this is another major important functional department of Falmouth Beach
Hotel which is necessary to undertake. The marketing is referred to as the promotion of
the goods and services provided by the hotel in the highly competitive market. This is the
major department on the basis of function as marketing ensures that more and more
consumer and guest are attracted towards the hotel (Baum, 2019).
 Human resource- this is another major important type of function under the head
functional department. This is majorly due to the reason that in the hotel the most

important function is being performed by the human resource only. This is due to the fact
that if the human resource will not be capable and good in communication then this will
have a great impact over the working of the hotel (Ozturk, 2016).
Both the operational and functional department are related with one another as they cannot work
in isolation with one another. This is majorly due to the reason that both are interrelated and if
the marketing will not be good then the consumer will come less and this will impact the
working of hotel to a great extent.
P 3 Contribution of hospitality sector in local, national and international economy
The hospitality industry is a very fast growing industry and is very beneficial for the
country and the local people as well (Hassi, 2019). This is majorly pertaining to the fact that if
the when the hospitality industry grows well then this increases the working efficiency of the
hotel. This contributes to the different economies in different manner which is discussed as
follows-
 Local economy- this is the economy wherein the hotel adds in the increase in the business
of other local related business as well. This is majorly because of the reason that when
the consumer or guest come to the place then they travel to the nearby spots and special
things as well. Thus, this increases the sales of that other business as well and the revenue
is also increased for the local business.
 National economy- the major importance and contribution of the hospitality industry
within the national economy is that this increases the income and adds to the national
income of the country. Another major importance of hotel and hospitality business over
the national economy is that increase in the purchasing power of local people only.
 International economy- the international economy is the one which covers the whole of
the world irrespective of the income being earned by the hotel. The major contribution of
the hospitality sector within the international economy is that this increases the working
efficiency and this will result in increase in the sales as the business will be undertaken at
the global level. This will also increase the employment opportunities all over the globe.
This is due to the reason that when the hotel operates at the global level then there are
many different requirements and this increases the employment opportunities
(Prud’homme and Raymond, 2016).

LO 2
P 4 Range of operational roles in hotel
With the hotel there are different types of roles and responsibilities and duties being performed
within the hotel. This is particularly due to the reason that there are different department within
the hotel and all these departments are led by the different people. All these variety of roles are
as follows-
 Front line manager- this is a role wherein the manager is appointed by Falmouth Beach
Hotel in order to manage the front office. Here, the manager is responsible for the
management of the guest and consumer since the time they enter and to that till the time
they leave the hotel (Jung and Yoon, 2018).
 Operational supervisor- this is yet another role being performed within the hotel in
managing the business to a great extent. The role of the operation supervisor within
Falmouth Beach Hotel is to oversee all the different activities which are being undertaken
within the hotel. This is essential as if the operation will not be managed in proper
manner then this will create problem for me.
 Back office manager- this is yet another different type of role which is carried on with the
hotel Falmouth Beach. Thus, it is very much essential for the hotel to have a good back
office manager as this is the person who will ensure that all the work behind the
consumer that is in the management is taking place in good and coordinated manner.
P 5 Skills required for these role
For the operation of all these roles and responsibilities to be undertaken into practice it is
essential for all the employees to possess some or the other skills. This is essential because of the
reason that these skills add on to the performance and working capability of the person. The
major skills and attributes available within the hotel are as follows-
 Communication- this is the most important skill without which the working cannot take
place within the hotel. This is due to the reason that when the communication is not good
and effective then the working of the hotel will not be good.
 Consumer handling- this skill is very much important for the hotel as if the employees
within the hotel are good and effective in handling the consumer coming to the place then

this is the most profitable business. Thus, it is essential for the business manager and
employees to handle the consumer in good and effective manner (Jung and Yoon, 2018).
 Team work- this is another major important skill to be possessed by the employees and
the manager working within the hotel. This is majorly due to the fact that in the hotel the
management of the hotel is to be done by the employees and for this the most essential
thing is the team work. If the teamwork will be good, then the hotel will be able to
manage the employees in good and effective manner.
But as per the skills and attributes required there is a shortage of skill within the hospitality
industry. Thus, for this it is essential for Falmouth Beach Hotel to have identify the gap among
the skill required and skill currently present (Filimonau and Brown, 2018). There are many
different factor which affect the working capacity of the employees so that they perform in good
and effective manner.
LO 3 and LO 4
Covered in PPT
CONCLUSION
In the end it is concluded that the hospitality is a growing sector which need to be taken
care of. This is particularly because of the reason that this involves high amount of profit and
will help country to grow. The current report outlined that there is different business within
hospitality sector like accommodation, food and beverages and many others. In addition to this
there are different operational roles within the hospitality industry like front office manager, back
office manager. Further the analysis of external and internal environment with help of PESTLE
and SWOT analysis was made. In the end the different consumer trend like changing consumer
requirement, use of ethics and use of technology and many other was discussed.

REFERENCES
Books and Journals
Afsar, B., Shahjehan, A. and Shah, S.I., 2018. Frontline employees’ high-performance work
practices, trust in supervisor, job-embeddedness and turnover intentions in hospitality
industry. International Journal of Contemporary Hospitality Management.
Arasli, H., Altinay, L. and Arici, H.E., 2020. Seasonal employee leadership in the hospitality
industry: a scale development. International Journal of Contemporary Hospitality
Management.
Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal of
Contemporary Hospitality Management.
Chon, K.K.S. and Zoltan, J., 2019. Role of servant leadership in contemporary
hospitality. International Journal of Contemporary Hospitality Management.
Filimonau, V. and Brown, L., 2018. ‘Last hospitality’as an overlooked dimension in
contemporary hospitality theory and practice. International Journal of Hospitality
Management. 74. pp.67-74.
Hassi, A., 2019. Empowering leadership and management innovation in the hospitality industry
context. International Journal of Contemporary Hospitality Management.
Jung, H.S. and Yoon, H.H., 2018. Understanding workplace bullying: Its effects on response and
behavior in the hospitality industry. International Journal of Contemporary Hospitality
Management. 30(3). pp.1453-1471.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Ozturk, A.B., 2016. Customer acceptance of cashless payment systems in the hospitality
industry. International Journal of Contemporary Hospitality Management.
Prud’homme, B. and Raymond, L., 2016. Implementation of sustainable development practices
in the hospitality industry. International Journal of Contemporary Hospitality
Management.
Online
Operational and functional departments within a hospitality business. 2020. [Online]. Available
through: <https://www.howandwhat.net/operational-functional-departments-hospitality-
business/#:~:text=The%20four%20major%20operational%20departments,department
%2C%20and%20front%20office%20department.>
What are the 4 segment of the hospitality industry? 2020. [Online]. Available through:
<https://www.hospitalitynet.org/opinion/4082318.html>