Unit 1 - The Contemporary Hospitality Industry

CHI
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Unit Number and Title: Unit 1 - The Contemporary Hospitality Industry - CHI
Project Title: CHI Portfolio
Submission Format: Portfolio
LO1 – LO2 Magazine Article
LO3 – LO4 Presentation and speaker notes
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Project Brief and Guidance:
PART 1: Hospitality Magazine Article (Individual work) LO1 - LO2
1. A list or chart showing different industry sectors with the type of establishments in each,
including tourism organisations that are linked to the Hospitality sector.
List of different industry sectors and establishment types are as follows:
1. Hotel industry: This mainly deals with lodging and accommodation services and is directly impacting
the businesses for all types of tourists like leisure travellers, long stay travellers, special travellers
etc. For e.g. Intercontinental Hotels Group is known for its large accommodation in almost 100
countries and including 800,000 guest rooms with approximately 5000 hotels.
2. Food and Beverages industry: This is essential for engaging in preparation and presentation of foods
and beverages to attract customers' attention. It helps in improving the customers' services. For e.g.
Coal Shed London ad Brighton, which is famous for steak and seafood restaurant
3. Travel and Tourism: This deals with people who are on move and is either formal or informal mo des
(Dikova and Brouthers, 2016). For e.g. Thomas Cook is one of the established tour operators which
focus on planning the entire travelling plan for tourist to make their travelling convenient and
easier.
4. Recreational sector: This is based on relaxation and enjoyment activities for bringing rest and fun
during a stay in either hotel or resort. For e.g. participatory activities like swimming classes,
bowling, movie theatres, cookery events, golf or playing casinos.

2. Size of the industry and its impact and contribution to the UK Economy (Guidance: you might
want to provide figures, graphs/charts and statistics for the importance of the hospitality industry
to the UK and international economies). These will illustrate your statements. Look at years 2016,
2017 to 2018. Include an analysis of the contribution to the global development of the industry.
Answer: Hospitality industry is defined as the service industry which reflects upon several fields like
accommodation, food and drinks services, travelling and event planning, etc. for promoting tourism at both
local and global levels. It has drastic impact on the economic factors of United Kingdom, which is going to
attain 257 billion British pounds by the year 2025. It involves tax revenues, profits and sales with focus on
employment generation and more. This constitutes approximately 10 percent of total Gross Domestic
Product of UK (Vamvakidis, 2018). From the below graph, it is clearly demonstrated that the hospitality
industry has accelerated the GDP in leaps and bounds. Additionally, its showcased total attainable value
that was 203 billion British pounds in 2016, 213.8 billion British pounds in 2017 and 220 billion British
pounds in 2018 respectively. These statistics indicated the forwarding profits generation from the
hospitality sector of UK.

In regard to this, there are several factors like inflation rate, economic growth rate, currency rate that act as driving
forces to maintain the economic growth and assist in expanding the hotel chains either through franchising or
mergers and acquisitions. Moreover, this aids in maintaining the revenue management by evaluating the
performance of the taskforce.
3. Give an example of licencing or franchising for a business of your choice and analyse its
contribution to the economic worth of the industry.
Franchising is defined as the relationship for business expansion in distributing goods and services. Its
contribution is immense to the economic worth of the hospitality industry with expansion plans and
internationalizing the operational activities. It is significant due to onset of globalization that leads using
strategic planning in terms of profits and rise of expansion with respect to number of hotels, taskforce,
availability of services and more in the potential markets for reaching the desired goals and objectives
(Bowie and et.al., 2016).
For e.g. Intercontinental Hotels Group (IHG) is headquartered in Denham and is dealing with several brands
such as Hotel Indigo, Holiday Inn, Crowne Plaza etc. Its franchising consists of purchasing of Holiday Inn
Family which made Crowne Plaza as one of its brands in the year 1990. Additionally, there is a formation of
Priority Club Rewards which has over 60 million members and make it as the largest loyalty program of the
hotel in the world.
Illustration 1: Graph presenting the total contribution of travel and tourism to GDP of United
Kingdom
(Source:Total contribution of travel and tourism to GDP in the UK, 2019)

4. Three examples of products or services indicating their nature, whether tangible or not.
Food: This is tangible product which is based on providing nourishment aspects of the targeted audience
Spa sessions: This is tangible product which is based on recreational activity and is focusing on relaxation of
body and mind of the customers'.
Brand image: This is intangible product and mainly deals with making a lasting impression on the minds of
the customers', investors and shareholders.
5. Review the inter-relationships between functional and operational departments in a hotel of your
choice.
Inter-relationships between the several departments is imperative in maintaining the brand image of IHG
Groups. There are core operational and functional departments which are required to work together to
understand the inventory management and overall specificity to fulfil clients' expectations. In this regard,
good communication channels and open interaction is necessary to fulfil the clients' requirements and
desires (Espino-Rodríguez and Gil-Padilla, 2015). For instance, front office (functional) must be in sync
with housekeeping (operational) to give details about the check ins and outs in order to maintain the
hygiene and replacement of any lighting, security checks etc. Moreover, HR department (functional) and IT
department (operational) also work together to maintain and safeguard the privacy and security of the
customers'. HR department has the employees' details and other legislations for implementing the policy
making properly. Herein the IT department helps in making the hotel's interface robust and secured from
any hacking, phishing or malicious activities. Thus, both functional and operational activities are important
to make the working practices of IHG effective and proficient.

6. Using the template given to you, provide an overview of the type of staff and skills required in the
industry, showing skills gaps, the impacts they can have on businesses and possible solutions to
minimise them.
Types of
staff (at
least three
different
staff roles)
Skills
required
Skills gaps you
can identify
Impacts of these skills gaps
on the industry
Receptionis
t
Good
interpersonal
skills,
computer
literacy for
bookings with
typing speed
Lack of
detailing and
mis
management
with other
departments
during guest
arrival
This leads to reputational risk in context to the
brand image among the customers' and also
leads to conflicts and affect the team
building spirit among the employees
Housekeepi
ng
Supervisor
Time
management
skills, good
communicatio
n skills with
high
motivated
levels
Lack of training
regarding
cleaning tools,
products and
others, no
understanding
of
implementing
the safety
procedures
This affects the cleaning of products that
are made available to the customers'
of the hotel and leave the premises
without any proper sanitation and hygiene.
This impacts and influences the customers to
visit the hotel again (Kennedy, 2019)
Chef Good culinary
skills, proper
knowledge on
using several
ingredients
and materials
Lack of using
equipments
and hi end
products such
as pasta maker
or torches for
Herein it makes or breaks the overall
impression on customers mind because
food is the ultimate gateway to gain the loyalty o
and push them to re visit

with good
presentation
skills to make
lasting
impression
making deserts
PART 2: Presentation (Group work) LO3 – LO4
INSERT HERE THE GROUP PRESENTATION (Slides or pictures of your flipchart presentation)
Your presentation will feature:
- PESTLE Analysis of the chosen organisation
- SWOT Analysis of the chosen organisation
- Current and potential trends in the industry
- Impacts of hose trends on the industry

-

INSERT HERE YOUR INDIVIDUAL NOTES ON THE PESTLE, SWOT, CURRENT AND POTENTIAL
TRENDS AND IMPACTS OF THOSE TRENDS ON THE INDUSTRYPESTEL Analysis of Crown Plaza
Hotel
PESTEL Analysis is done to analyse various external factors which affects the operations of tha
company. That are describes below-
Political Factors- Policies & regulations made by government affects the hotel industry the most
because hotsel have to pay taxes. Change in the taxation policy of the government of UK also affects the
operations of Crown Plaza because government levy high duty of taxes from the luyxury & 5-7 star hotels.
Goverment of UK also make policies for the safety & security of the hotels customers which is compulsorily
followd by the management of Crown Plaza Hotel.
Economic Factors- Econimic factors such as interest rate, GDP & Inflation also affects operations
of the Crown Plaza Hotel. If there is inflation in the economy of UK than that leads to decrease in the
purchasing power of individuals and which in turn reduces customers & profits of Crown Plaza Hotel.
Social Factors- Social factors also impacts business of hotel industry because choice & preferences
of the society are changing day-day and it is the responsibility off the managers of Crown Plaza Hotel to
fulfil needs of the society. Customers of the hotels are from the different6 culture & background so it has to
analyse all the social factors & provide its services according to their needs.

Technological Factors- Technology is the most important factor which affects business of Crown
Plaza Hotel. Every customer wants Wi-Fi & LED Tv in the hotel so hotel have to provide all the
technological services to its customers. Technology also helps the Crown Plaza Hotel in achieving
customers satisfaction, reduces work load & enhances performance & profits of the hotel.
Legal Factors- Various Laws made formed by the government of UK also affects the hotel. Crown
Plaza Hotel has to follow all the provisions of health & safety Act, Anti- Discrimination Act & Data
protection Act made by the government of UK and if there is any changes in the provisions of this laws than
managers opf the hotel has to adapt that changes and operate its business accordingly.
Environmental Factors- Changes in the weather and environmental factors such as heavy rain &
fllod directly affects operations of the hotel. Manager of Crown Plaza Hotel has to eduacte its employees
So, that they can take care of its customers in the case of emergency. Monsoon affects the operation of the
hotel the most because it reduces customers and thus profits of the hotel.
SWOT Analysis of Crown Plaza Hotel
Strenghts-
Crown Plaza Hotel has wide network and it provide wide range of facilities to its customers.
Hotel follows all new technology and provide all type of technological services to its customers.
Revenue & ROI of the Crown Plaza Hotel is also high.
Weekness
7. Crown Plaza Hotel's information technology system is very poor which slower its operations.
8. Poor relationship management which reduces customers base of the Crown Plaza Hotel.
Opportunities
- Crown Plaza Hotel can provide online booking facility by using various apps which attract
customers.
- Crown Plaza Hotel has an opportinity to increase tourist travel by giving advertisement on the social
media & using various online platforms.
Threats
 Many hotels are opening now a days and business of hotel industry is widely increasing thus that is
a threat for Crown Plaza Hotel.
 Terrorist attact is also a biggest threat for the managers of Crown Plaza Hotel, because they are
responsible for customers safety.
Current and potential trends in the industry
There are several trends in the hospitality industry which is triggered by the ongoing market strategies and
planning to attract the customers' attention and to gain profits ad revenues feasibly. This involves the
following:
 Use of technologies and social media platforms
 Rules to bring sustainability factor
 Cleanliness for providing excellent services
 Millennials trends like solo travelling, seamless tech explosion etc.
Use of technologies and social media platforms- This includes the formation of travelling related websites
and rise of bloggers who provide an outline and assistance as well for travellers to all destinations of the
world. It adds to enhanced connectivity while moving and also involves mobile check ins and outs and
promoting the use of concierge services digitally.
Rules to bring sustainability factor- With social responsibility, the tourism sector is encouraging the hotels,
tour operators etc. to impart education for adopting eco-friendly practices through implementing solar

panels, automation in switching off and on of lights, AC's etc.
Cleanliness for providing excellent services- This is essential to manage the services and pushing the
travellers to re visit the premises in proper manner. Moreover, the hotels are using innovative concepts via
substituting spa sessions, yoga, physical related activities and more to maintain the health and well being
of the customers.
Millennials trends like solo travelling, seamless tech explosion etc.- This includes over dependency on
digital platforms as this particular set are refereed as the early adopters of technology and are better
platforms to personalised interactions. For instance, they use high quality tech equipment ad better
support from the staff.
Impacts of those trends on the industry
The existing methods have impacted the working practices in the hospitality sector and led to changes in
accordance with gaining competitive advantages over the rivals ad tour operators. These help in
understanding the customers' requirements to be fulfilled in proficient manner.
Use of technologies and social media platforms- This includes the formation of travelling related websites
and rise of bloggers who provide an outline and assistance as well for travellers to all destinations of the
world. It adds to enhanced connectivity while moving and also involves mobile check ins and outs and
promoting the use of concierge services digitally.
Rules to bring sustainability factor- With social responsibility, the tourism sector is encouraging the hotels,
tour operators etc. to impart education for adopting eco-friendly practices through implementing solar
panels, automation in switching off and on of lights, AC's etc.
Cleanliness for providing excellent services- This is essential to manage the services and pushing the
travellers to re visit the premises in proper manner. Moreover, the hotels are using innovative concepts via
substituting to maintain the health and well being of the customers.
Millennials trends like solo travelling, seamless tech explosion etc.- This includes over dependency on
digital platforms as this particular set are refereed as the early adopters of technology and are better
platforms to personalised interactions. For instance, they use high quality tech equipment ad better
support from the staff.

REFERENCE LIST
Books and Journals
Bowie, D. and et.al., 2016. Hospitality marketing. Routledge.
Dikova, D. and Brouthers, K., 2016. International establishment mode choice: Past, present and
future. Management International Review.56(4). pp.489-530.
Espino-Rodríguez, T.F. and Gil-Padilla, A.M., 2015. The structural and infrastructural
decisions of operations management in the hotel sector and their impact on organizational
performance. Tourism and Hospitality Research.15(1). pp.3-18.
Kennedy, D., 2019. Limited and Select Service Hotels: 5 Ways Your Front Desk Staff Can
Increase Direct Bookings and Cut Distribution Costs.
Vamvakidis, D., 2018. Digital Transformation.
Online
Total contribution of travel and tourism to GDP in the UK. 2019. [Online]. Available
through:<https://www.statista.com/statistics/598093/travel-and-tourism-gdp-total-contribution-
united-kingdom-uk/>.
Indicative word count for this Project: +/- 2500 words.