Hospitality Industry Analysis: Operations, Economics and Trends

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on The Ritz Hotel in London as a case study. It explores various types of businesses within the hospitality sector, including lodging, restaurants, pubs, travel & tourism, and membership events, highlighting their diverse products and services. The report discusses the significant contribution of the hospitality industry to local, national, and international economies, emphasizing job creation, revenue generation, and the enhancement of a country's international image. It examines operational and functional departments within The Ritz Hotel, such as front house and back house operations, and reviews their interrelationships, illustrating how these units coordinate to deliver high-quality services. Furthermore, the report touches upon the influence of franchising and licensing agreements on the global development of the hospitality industry, investigates operational roles and required skills, and assesses the impact of political, economic, social, technological, legislative, and environmental factors on the industry's development. The report also briefly mentions a SWOT analysis and the implications of current trends, concluding with an overview of the industry's ability to adapt to meet these trends.

The Contemporary
Hospitality Industry
1

INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Explore a number of different types of business within the hospitality industry and the diverse
products and services that they offer......................................................................................4
Discuss the contribution of the hospitality industry to local, national and international
economies...............................................................................................................................5
Examine a range of operational and functional departments within a chosen hospitality
business...................................................................................................................................6
Review the interrelationships of the operational and functional units within a chosen
hospitality business.................................................................................................................8
Assess how the use of franchising and licensing agreements has influenced the global
development of the hospitality industry.................................................................................9
Investigate a range of different operational roles within the hospitality industry................10
Examine the skills required for roles within the hospitality industry and current skills
shortages...............................................................................................................................11
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles...................................................................................................................11
An assessment of the political, economic, social, technological, legislative and environmental
factors that affect the development of organisations operating within the hospitality industry
..............................................................................................................................................12
Covered in PPT.....................................................................................................................12
An evaluation of the impacts of external factors on the development of organisations
operating within the hospitality industry; this should include specific examples................12
Covered in PPT.....................................................................................................................12
An example of a SWOT analysis for a hospitality business (of your choice) and a review of
how this can inform the decision-making process...............................................................12
Covered in PPT.....................................................................................................................12
An appraisal of the implications of current and potential trends in the hospitality industry;
give a range of specific examples.........................................................................................12
An evaluation of the ability of your chosen hospitality business to develop products and
services that will meet current trends...................................................................................12
2

Covered in PPT.....................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
3

INTRODUCTION
Hospitality industry is inclusive of different operations such as event planning, food and
beverage, lodging, travel and tourism etc. This industry is playing important role not only in
terms offering high quality facility to consumers but also in enhancing economic growth of a
country (Bhat and Sharma, 2021). Present report is conducted on The Ritz Hotel, London which
was opened in the 1906 and offer high quality Services and facilities to consumers. In this report
formative discussion has been included on different type of business in hospitality industry along
with the contribution of this industry in national, local and international economics. Along with
this interrelationship of operational and functional unit within this industry and skills considered
in this industry to perform roles is also discussed in this report.
MAIN BODY
Explore a number of different types of business within the hospitality industry and the diverse
products and services that they offer
Hospitality is one of the fastest growing industrial sector around the world in which
organisations are engaged in the services of providing facilities related to lodging, event
planning, food and drink services, travel and tourism, theme park etc. It includes restaurant,
hotel, tourism agency and more. With the help of high-quality services and facilities. This
industry is indulged in offering satisfaction to consumers. Mentioned below there are some
certain forms businesses that are found in hospitality sector is being discussed:
Lodging:
It is a facility of provision of accommodation services. Lodging is mainly offered by real
property on leasehold estate owner. Lodging facility mainly mean any portion or structure which
is intended or occupied or design for short-term occupancy, for example sleeping purpose. These
facilities are being provided for a night or more than one night to consumers within hotels and
motels. In terms with The Ritz Hotel, London they provide attractive lodging facilities to
consumers.
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Restaurants:
In this form of business within hospitality industrial sector facilities related to food and
beverage is being offered to consumer as per their preferences, needs, taste and wants.
Organisations in this sector mainly belongs to food and beverage industry. Within The Ritz
Hotel, London a provision of catering services is being offered to consumers in order to satisfy
their needs and demands.
Pubs, bars as well as night clubs:
Due to growing demand of bars, pubs and nightclubs among consumers this type of
businesses is also one of the leading businesses within hospitality sector in which facilities
related to beverage, entertainment etc is being offered to consumers. In this hotel offer
individuals facilities to customers in which they can have fun with acquaintances, families and
peers according to their convenience. Main aim behind this is to make consumer relaxed and feel
refreshed. The Ritz Hotel, London offers these facilities in order to attract them in effective
manner.
Travel & Tourism:
This is also one of the leading businesses in hospitality industrial sector in which services
like transportation, computing is being offered to individuals by way of train, air, ship etc.
Organisations in this business are engaged with continuous transmission of individual to arrange
that tour from one place to another by offering them high facilities.
Membership and Events:
This is a form of business within hospitality sector which is engaged in the services of
offering membership of their hotel for lifetime, a year, or 5 years in which consumers can enjoy
different type of services at a fixed cost, minimum cost or at free. For example, by with having
membership of hotel consumers can have access of free breakfast and meals and events like
Christmas and New Year party.
Discuss the contribution of the hospitality industry to local, national and international economies
Hospitality industry in today's business world is one of the leading and growing industrial
sector which is engaged in providing wide range of services and facilities to consumer such as
travel and tourism, food and beverages, entertainment facilities etc. This industry is constantly
developing in fast manner. It has been underlined that hospitality industry is having wide range
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of national, local and international benefits to economy. This industry is significantly contributed
in enhancing per capita income of individuals by providing wide range of job opportunities. In
addition to this it has been underlined that this industry not only helps in enhancing living
standards of individual but are also contributing in enhancing particular destination revenue
which is helping national and local government to enhance their gross domestic production.
Furthermore, it has been identified that due to travel and tourism facilities and hospitality
industry services like business, vacation, leisure, exploration etc is being provided to consumers
which is significantly attracting large number of individuals from different locations around the
world. It is significantly enhancing country foreign reserve rate which is helping nation to
enhance its international image.
It has been identified that hospitality industry in the provinces of United Kingdom is
revolving in a rapid trade and are generating employment for local individual. It had been
evaluated that respective industry have given jobs to total 2.4 million of individual according to
statistics of 2017 and around 1.2 million in appropriately 170,000 business start-ups. In United
Kingdom hospitality industry is 5th biggest sector which employed large number of individuals.
This industry is leading country to generate maximum £90billion revenue in terms of taxation. It
has been evaluated that VAT collected from restaurant in United Kingdom also generated
j54000ob which is enhancing company per capita income.
In addition to the underlined that that significant contribution of hospitality industry in the
economy of United Kingdom due to employment opportunities, individual per capita income and
living standard of individuals which is increasing at constant rate. This is increasing individual
ability to purchase which is generating cash flow with the economy (Teng and Cheng, 2021). It
indicates that hospitality sector is increasing individual living standards and enhancing their
buying power which is enforcing cash flow within country and is providing national benefit in
efficient manner.
Furthermore, it has been identified that hospitality industry in United Kingdom is playing
important and significant role as they are providing satisfactory services and attractive offers to
consumers around the globe. It is increasing United Kingdom image in international market
place. Thus, due to travelling activities and hospitality Services United Kingdom is effectively
building strong ties and relationship with other countries which is playing major role a number of
other aspects.
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Examine a range of operational and functional departments within a chosen hospitality business
For an organisation both functional and operational department are said to be the core as
both of these departmental units are engaged in the services roles and responsibilities to provide
satisfactory and efficient services to consumers (Davras and Durgun, 2021). With the help of
correlation both these department execute activities while having their own importance that
could not be neglected. There are different range of operational and functional department in
hotels like which is being described below:
Front house operation department:
Front house department consists of operational area which include front office,
housekeeping and reservation in a hotel. It has been identified that front house department within
hotel business directly make interaction with consumers at first when they arrived at the hotel.
Staff members with this department is very much visible to consumers and they handle
transaction between guest and hotel in effective manner. In order to conduct operations in front
house department it is essential for employees to have good communication skill and effective
persuasion power. In addition to this it is inclusive of functional unit like sales and marketing
that are engaged in catering sale. The food and beverage unit of The Ritz Hotel, London also
belong to this department and inclusive of room services, banqueting, lodge, conferencing, bar,
restaurants and pub.
Back house operation department:
This department is inclusive of areas such as human resource management, engineering
and accounting. It has been underlining that employee within backhouse department within an
organisation make sure that all the services and facilities are being provided to guest are up to the
standards, with high quality, safety and hygiene. This department effectively co-ordinate with
front house department of hotel in order to make sure that consumers are being provided with
satisfactory and high-quality services (Ņikadimovs and Rodčenkova, 2021). Backhouse
operation department within hotel is executing business roles and responsibilities while ensuring
safety and security of consumers and employees on simultaneous basis. In addition to this it has
been underlined that HR functional unit is having responsibility to make sure that Hotel is free
from contamination, have proper hygienic and healthy and positive atmosphere. In addition to
this has been identified that engineering unit is having responsibility to keep infrastructure
facilities of hotel up to the mark and emphasize upon enhancement of capital and ground
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maintenance. Along with this accounting department is engaged in the services of credit services
and ascertain gains and revenue which is earn by company.
Illustration 1: Functions and Divisions
(Source: Functions And Divisions, 2019)
Review the interrelationships of the operational and functional units within a chosen hospitality
business
It has been identified that in The Ritz Hotel, London both operational and functional units
are performing their business roles and responsibilities with strong and efficient interrelationship.
It has been identified that front office department interact with all departments in hotel which
include housekeeping, marketing, sales, food and beverage, security and human resource with a
strong communication links in order to make them aware about the number of consumers and
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their need and demand. It has been identified housekeeping department of hotel prepare
occupancy report and further sent to front house department in order to provide them information
about room status. In addition to this it has been identified that front office department of The
Ritz Hotel, London provides information about the departed in arrival of guest which help food
and beverage department to perform their roles and responsibilities accordingly. Along with this
front office department also provide information about VIP guest to F&B department to make
arrangement for special facilities like fruit basket, assorted dry fruits etc. It has been identified
that front office desk provides information to human resource department for the requirement of
training new staff extra in different departments. In this Human resource department co-ordinate
with other department to know the requirements of the employee skills and further fulfil them
accordingly. Marketing and sales department of The Ritz Hotel, London undertake advantage of
front office to take know guest histories, special need, frequency of visit in order to pitch them
accordingly. It has been identified that with the help of this interrelationship between operational
and functions The Ritz Hotel, London perform their business efficiently.
Assess how the use of franchising and licensing agreements has influenced the global
development of the hospitality industry
Hospitality industry is a leading industrial sector which is offering wide range of products
services and facilities to consumers. In this it has been identified that with the help of taking
advantage of franchising and licensing agreement organisation in this sector are taking advantage
of efficient global development in which they are expanding their business services on different
location. With help of licensing agreement business organisation are enhancing their market
share with the help of low capital requirement (Hao and Chon, 2021). Along with this licence
agreement are also providing hospitality industrial sector to enhance return of investment and
decrease legal and financial risk. Thus, it has been identified that franchising and licensing
agreement are influencing global development of hospitality industry. In terms with The Ritz
Hotel, London they are also looking to expand their business in Asian market in which with the
help of franchising and licensing agreement company can enhance their success rate in efficient
manner.
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Investigate a range of different operational roles within the hospitality industry
In Hospitality industry there are different type of operational roles which is being
performed by employees in order to serve consumer needs and demands in effective manner.
Mentioned below there are some certain operational rules in hospitality sector is being discussed:
Housekeeping:
In this role individuals are engaged in the services of assuring that consumers have access
of clean and well-maintained atmosphere and ambience. This apartment plays roles and
responsibilities to provide feasible and comfortable place to consumers with properly cleaned
ambience. It has been identified that within hospitality industry housekeeping department plays
most important role as they are engaged in providing clean and neat atmosphere to consumers
which it helps in enhancing their overall level of satisfaction at first (Jooss, Burbach and Ruël,
2021). The Ritz Hotel, London housekeeping department make sure that rooms, fitness centre
banquet, hall conference etc are properly clean with all sanitization measures in order to treat
consumers effectively.
Sales and Marketing:
Hospitality industry is a competitive business environment in which different type of
organisations are offering wide range of facilities and services to consumers. In this to make
consumers awareness about the attractive and unique feature of product and services individual
with sales and marketing department perform the role of attracting consumers with the help of
efficient marketing and sales techniques. In terms with The Ritz Hotel, London marketing and
sales department arrange number of campaigns with the help of promotional tools to attract
consumers in a well-defined and effective manner. This operation role also plays important role
in enhancing overall profitability and sales of company.
Front desk facilities:
In hospitality industry front desk executive and employees are engaged with consumers on
direct basis. This department is responsible to device strategies to encourage customers and
understand their actually needs and demands. This department also perform important role to
resolve complaints and continuously communicate with consumers in order to create long lasting
impression.
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Examine the skills required for roles within the hospitality industry and current skills shortages
In terms of hospitality sector there are number of consumers who belongs from different
nation, cultural, background etc. In order to manage them it is essential for employees working in
this sector to have access of wide range of skills in order to conduct different type of roles and
tret consumers efficiently. There are some certain skills which is essential to have within this
sector is being discussed below:
Flexibility skills:
Hotel industry welcomes consumers from diverse location, in this it is important for
companies to have flexibility in which they can consume to my products and services as per
consumer needs and requirement. Flexibility skill play important role for employees in this
sector in order to treat them as per their requirement to satisfy in efficient manner.
Language skills:
Hospitality industry have consumers from different countries and locations. In this it is
important for employees in this sector to learn different type of languages in order to understand
actual needs and demands of consumers (Kim, Ahn and Lee, 2021). Negligence of this will led
consumers frustrated and agitated which can impact business operations in adverse manner.
Communication skills:
Communication plays most important skill especially in hospitality industry sector as in
this employee are engaged to serve consumers from different, location, background and culture.
In this it is essential to have a strong communication skill in order to treat them efficiently.
Along with this it is essential for hospitality industry to make sure that employees are aware with
more than one language in order to serve consumers.
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles
From the analysis, it has been identified that there are different types of operational roles
being performed within companies such as housekeeping, sales and marketing. In this it has been
identified that there is certain skill gap within The Ritz Hotel, London which is affecting
employees to perform operational roles in effective manner (Luu, 2021). It has been identified
that company is looking forward to expand the services in Asian market which is a highly
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competitive market in which business organisations in this industry are taking advantage of
digital marketing. In this The Ritz Hotel, London has moderate persuasive skill and social media
skill which is affecting them to influence consumers with the help of digital marketing. In
addition to this it has been identified that employees also do not have knowledge of more than
one language can affect company to perform operational roles such as front desk and
understanding customers’ needs in effective manner.
An assessment of the political, economic, social, technological, legislative and environmental
factors that affect the development of organisations operating within the hospitality
industry
Covered in PPT
An evaluation of the impacts of external factors on the development of organisations operating
within the hospitality industry; this should include specific examples
Covered in PPT
An example of a SWOT analysis for a hospitality business (of your choice) and a review of how
this can inform the decision-making process
Covered in PPT
An appraisal of the implications of current and potential trends in the hospitality industry; give a
range of specific examples
An evaluation of the ability of your chosen hospitality business to develop products and services
that will meet current trends
12

Covered in PPT
CONCLUSION
Thus, from the above-mentioned report has been concluded that hospitality industry is a
leading industrial sector which is engaged in the services of providing a wide range of facilities
to consumers in order to provide them relaxation and serve their needs accordingly. In this it is
essential for company to evaluate external and internal environment in order to develop effective
strategies. From this report it has been identified that with the help of taking advantage of
innovation, uniqueness and technology organisation can serve consumers in any market area by
providing them high-quality services and facilities.
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REFERENCES
Books and Journals
Andrade, M.S., Miller, D. and Westover, J.H., 2021. Job Satisfaction and Gender: A Global
Comparison of Job Satisfaction in the Hospitality Industry. Journal of Quality
Assurance in Hospitality & Tourism, pp.1-23.
Bhat, D.A.R. and Sharma, V., 2021. Enabling service innovation and firm performance: the role
of co-creation and technological innovation in the hospitality industry. Technology
Analysis & Strategic Management, pp.1-13.
Davras, O. and Durgun, S., 2021. EVALUATION OF PRECAUTIONARY MEASURES
TAKEN FOR COVID-19 IN THE HOSPITALITY INDUSTRY DURING
PANDEMIC. Journal of Quality Assurance in Hospitality & Tourism, pp.1-23.
Hao, F. and Chon, K.K.S., 2021. Contactless service in hospitality: bridging customer equity,
experience, delight, satisfaction, and trust. International Journal of Contemporary
Hospitality Management.
Jooss, S., Burbach, R. and Ruël, H. eds., 2021. Talent management innovations in the
international hospitality industry. Emerald Group Publishing.
Kim, J.H., Ahn, S. and Lee, E., 2021. Effect of Power Message on Employee Response and Job
Recruitment in the Hospitality Industry. Journal of Hospitality & Tourism Research,
p.10963480211010992.
Luu, T.T., 2021. Can human resource flexibility disentangle innovative work behavior among
hospitality employees? The roles of harmonious passion and regulatory
foci. International Journal of Contemporary Hospitality Management.
Ņikadimovs, O. and Rodčenkova, A., 2021, May. HOSPITALITY INDUSTRY DURING
COVID-19 CRISIS: REVIEW OF THE CURRENT SITUATION AND
SUSTAINABLE POST-CRISIS RESPONSE. In SOCIETY. INTEGRATION.
EDUCATION. Proceedings of the International Scientific Conference (Vol. 6, pp. 449-
467).
Teng, C.C. and Cheng, S.S., 2021. Hospitality ethics: Perspectives from Hotel practitioners and
intern students. Journal of Hospitality & Tourism Education, 33(2), pp.99-110.
Yang, M. and Han, C., 2021. Revealing industry challenge and business response to Covid-19: a
text mining approach. International Journal of Contemporary Hospitality Management.
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