Contemporary Hospitality Industry: Business Analysis and Future Trends

This report provides a comprehensive overview of the contemporary hospitality industry, focusing on various businesses within the sector such as accommodation, food and beverage, and camping. It details the operational and functional departments in a hotel setting, including housekeeping, food and beverage, marketing, human resources, finance, and security. The report also presents the contribution of the hospitality industry at national, local, and international levels, highlighting its impact on employment, economic output, and foreign exchange earnings. Furthermore, it discusses operational roles within the industry, essential skills, and current and potential trends, including the impact of the pandemic and strategies for future development. The analysis includes examples from the UK and the USA, illustrating the industry's significant economic and social contributions.

THE CONTEMPORARY
HOSPITALITY INDUSTRY
UNIT 1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Various bushiness in the hospitality industry and the different products and services offered
by them........................................................................................................................................1
Operational and functional departments in the hospitality industry...........................................2
P3 Presenting the contribution of the hospitality industry:.........................................................3
Operational roles within hospitality industry..............................................................................5
Skills required and short in hospitality industry.........................................................................6
Analysis of organisation and hospitality business......................................................................7
Current and potential trends........................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry is the leading sector of UK. This sector includes hotels, restaurant,
bars, food courts etc. Marriott is the multinational hotel which have branches across the world. It
is the five star hotel. Hotel is famous for their world class services. This report will discuss
different types of business within hotel sector and their operational and functional departments.
Further will analyse the contribution of this industry in the local or international economy and
also discuss the operational role within the industry. This report will also discuss current skills,
swot analysis and potential trends of the industry.
MAIN BODY
Various bushiness in the hospitality industry and the different products and services offered by
them
Businesses within the hotel industry:
Accommodation-
this is the primary business which is run by hotel industry. They provide accommodation in the
form of lodge, resorts, bed and breakfast. Inns motels, hotel etc. here guests can visit and stays
here for overnight. In the hotel various services are offered to the guests which involves
restaurant, dining room, reception facility, security and safety etc. while resorts is considered as
the holiday destinations where an individual can visit and spend some days (Martínez-Martínez
and et.al., 2019). There are many services and amenities which is available in the resort.
Basically resort has everything give good customer experience to the visitors like pools, spas,
riding facilities etc.
food and beverage-
there are many companies in the hospitality industry which works under food and beverage
business. It is the business which provides meals, drinks, mocktails and snacks to the customers.
Customer can immediate consume it. This business involves restaurant, food trucks, fast food
centres, buffet restaurant, fine dining, bistro etc. this is the highest growing business in the
hospitality industry. This sector in the overall hotel industry contributes high in the economic
development of the country. Example fine dining and fast food joints.
Camping-
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camping is the process in which an individual can visit and spend their vacation. Camping
require resources which include infrastructure, equipments etc. camping is the vest way which
can relax an individual. It has gaining popularity day by day. It is the best way to explore the
place. Camping is mostly preferred by those people who are adventurous and wanted to try
something different.
Various products and services of hospitality industry
bars-
there are various types of bars which are there in the industry but every bar is selling alcoholic
drink or beverages. Bars are well designed and also offer costly alcoholic drinks. In mostly
hotels bars are present. If in any hotel, bar is not present, than drinks to the customers gets
served on the table. Bar serves veer, wine and cocktails etc. there are some bars which offers
only expensive drinks but there are those bars also which provide expensive as well as less
costly drinks also (Chung and D’Annunzio-Green, 2018).
coffee house-
it is the place which sells different types of coffee which includes latte, cappuccino, espresso etc.
there are some of the coffee houses which service food items also along with coffee. It also
services cold drinks like juices, iced tea etc. people visit in the coffee shop for meetings, get
together etc. there are many famous coffee houses which includes Starbucks, cost coffee etc.
coffee house is the non commercial catering business.
Operational and functional departments in the hospitality industry.
Operational departments-
housekeeping department:
it is the department of the Marriott, which influence the experience of the customers. The work
of this department is to make sure that guest rooms, restrooms, lobbies and the common areas
are properly cleaned or not. They have to ensure proper hygiene in the hotel area (Özdemir,
Çolak and Shmilli, 2019). Housekeeping staff clean the room properly after the guest check out
so that new guests can use it.
Food and beverage department:
food and beverage which is prepared in the kitchen has to be reached to the customers. This is
the duty of this department that meals and drinks reaches to the guests. It also handles waiters
and ensure that they are providing good services to the guests.
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Food production department:
in simple language it is the kitchen of the hotel. It is the most important department of the hotel
because it prepare food or dishes which is consumed by the guests (Ivanov, Seyitoğlu and
Markova, 2020). Chefs, cooks, kitchen porter and manager of kitchen are responsible for the
food safety and hygiene along with the taste. Food safety is the most important thing because
unhygienic food can cause health problems within the guests and that can impact reputation of
Marriott.
Functional department-
Marketing department:
this is the most important department for Marriott because it will promote hotel and also helps in
increasing sales and revenue. Marketing department have proper knowledge and aware the
customers regarding services which is provided by the hotel.
Human resource department:
another important department. Human resource of Marriott make sure that they hire right
candidate for the right position. Employing workers is not the easy task. As HR have to properly
evaluate every candidate before giving them job. In order to get best candidate they have to give
attractive advertisement so that can attract talented candidate.
Finance department:
this department deals with the monetary aspect of the company. They prepare budget for every
department and make sure that company can run with the given budget. They also prepare
financial statements which includes balance sheet, profit and loss account, income statement etc.
this department knows the financial position of the company.
Security department:
this department take scare of the overall security of the hotel. Security is the important thing and
guests should feel secure because otherwise they wont stay in the hotel (Rutherford, 2021). They
does not take care of the guests only but also they have to ensure that security of the employees
are also maintained. Safety and security is the main thing which is checked by the guests while
choosing the hotel. Marriott make sure that security of their guests are proper maintained.
P3 Presenting the contribution of the hospitality industry:
Hospitality industry is broad category in the service industry that includes food, lodging,
drinks, travel, tourism etc. A hospitality unit in restaurant, hotel, parks etc. consists of various
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units such as facility maintenance and direct operation workers such as housekeepers, porters,
human resources etc. Moreover, hospitality sector is one of the fastest and largest growing
sector in the world. This sector has created more than 328 million jobs and has supported 10%
of the workforce of the world by 2022(Filimonau, 2021). Hospitality sector has created
employment opportunities and is helpful in generating income in variety of ways that helps in
further growth of industry. Further hospitality sector has helped in generating foreign exchange
earnings for the host country and also encourages diversification through various strategies and
policies.
National level :
The hospitality sector in United kingdom represents 6.9% of total UK employment that primary
includes food and accommodations services industries. The total gross value added by this sector
accounts for 59.3 pounds that is almost 3% of the total UK economic output(Pacheco and
Tavares, 2017). Moreover, it is seen that accommodation and food services were the most
affected sectors in the pandemic. To promote this industry the UK government has launched
various business support schemes such as business loan and CJRs to develop such sectors once
again after the pandemic.
In-spite of all such things the sector is developing very fasts and major focus is to develop
powerful business through continuous innovation and creative ideas(Martínez and Nishiyama,
2019). Further, the hospitality sector is diverse sector of work that has allowed individuals in
UK to live best life, support families as it has helped in providing wide range of career and job
opportunities. Hospitality sector has helped to reach every corner of globe by maintaining the
international level of quality.
In 1st January 2020, there were total 3.7% of UK companies in total hospitality sector. In each
country or region hospitality industries consists of overall 3-5% of the businesses. Moreover, it
accounts for 4th biggest industry in UK through providing the finest magnificence services and
excellent amenities.
Local contribution:
In various regions' hospitality industry has helped local economies to generate lot of funds for
development and has helped in boosting the overall economy. They are the main source of
livelihood for huge number of families and also various essential services are also made
available to the local communities with fewer efforts. The contribution can be explained
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through an example of area East Sussex, England where there are various regional companies
such as hotels, cafe shops, restaurants and attraction in Brighton and hove that are profitable in
terms of earning more than 820.4 pounds in hospitality sector(Singal and Rhou, 2017). Further
it has been found that these revenues are been generated by employing approximately 15,730
employees who worked there as either part-time, full time or in seasonal jobs. Based on some
reports and estimates it was also found out that there was overall 0.3% growth from 2017 in
relation to jobs.
International economies:
On international level also hospitality sector has contributed very much in generating foreign
currency from different parts of world. For example in context of United states of America, this
sector has generated $1.6 trillion in overall economic output in 2017. Hospitality industry export
accounts for 11% in the total U. S exports(Reilly, 2018). Moreover, it has contributed 2.8% in
GDP that is approx $590 billion. Also, it has generated 8 million jobs that is much bigger count
in terms of making people happy through job opportunities.
Operational roles within hospitality industry
Hospitality industry work with many departments and it is important that the employees
working there posses some specific skills to provide the best services to its customers. These
skills and responsibilities are important as hospitality is the most demanding industry an helps
the business to attain a higher standard. Operational staff of the company helps in performing the
daily tasks that will make sure that the business of the company is running efficiently. Some of
the roles required includes:
Hotel receptionist: These individuals are the first point of contact for the guests coming
at the hotel. Their role includes to be the face of the organisation and are thus, important for
delivering exceptional services to its customers (Perepelytsia, and Yurchenko, 2019). The duties
involved to perform these roles are to welcome the guests when they arrive at the organisation.
They must also support the needs of all guests when they are checking in or out from the hotel
and manage their check in and checking out process. They are responsible for solving every
issue and doubts faced by the guests of the hotel. These individuals are at front desk and will
also handle the administrative tasks within the organisation.
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Hotel manager: The operations for a hotel manager is to look after the day to day
operations within the hotel while making strategies that will help in maintaining a positive
environment within the hotel organisation. Hotel manager has a lot of responsibilities to manage
and work on wide range of activities within the organisation and in a way that will helps in
generating good level of customer satisfaction. This will make the hotel run with high profits.
Hotel manger is supposed to manage the services within hotel such as catering as well as
accommodation of the guests. They will supervise all the work done along with taking care of
the ongoing renovations in the organisation.
Hotel housekeeper: The house keeping staff within the organisation are hired to
maintain the hotel and keep it in the best possible state with regard to cleanliness and
maintaining the ambience for the guests (Yang, Henthorne, and George, 2020.). Their
responsibilities includes cleaning up the rooms of hotel, corridor, lobby and all other areas
within it. They will dust and polish different surfaces along with the furniture. Housekeepers are
even responsible for emptying the trash bins and changing the linens for the guests. They will
replace all the toiletries and will provide laundry services for the customers of the company.
Restaurant manager: This is different from the hotel manager. The tasks and activities
within the restaurant present within the hotel is managed by hotel manager. They will ensure that
the restaurant is running in a profitable way and following all the food safety and health
regulations. They will make sure that the guests of the hotel are satisfied with the food services.
Restaurant manager will look after maintaining the hygiene standards within the restaurant area
of the hotel.
Skills required and short in hospitality industry
The skills required for performing these operational roles efficiently includes good
amount of communication skills for the restaurant and hotel manager along with the hotel
receptionists.
Skills required: Communication skills to have proper and welcoming interaction with the guests,
Leadership skills to mange the employees working under them. Along with this, they must
exhibit problem solving skills to solve the quires of the guests. They must put more attention
towards details and safety standards (Goryushkina, and et.al., 2018). A hotel receptionists must
be well groomed and must give attention towards the details on their appearance. Manager must
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have the numerical skills to do all the calculations and look after the budget allocated to that
department. Skills for the house keeping staff includes having attention towards the details and
good listening skills. They must be organised while being honest and exhibiting high level of
energy.
However, there are shortages of professionals and the required skills within the
hospitality industry. The industry is growing at a constant pace and this is resulting in creating
problems to find the best staff for the hospitality organisation. There is shortage of labour within
the hotel organisations. The reasons behind this shortage of skills within the industry are ow-n
paid jobs, political crisis, and major misconceptions that are driving the shortage within the
skills. Political factors such as Brexit have created uncertainty and due to this, the workers
within this industry are paid less and are low- skilled. Long working shifts and working at night
is making people leave these jobs and portray the negative image of the current industry
condition (Ristova, and Dimitrov, 2019). There are different options to prevent the shortage of
skills and labour. It includes training the employees and solving their problems within sort
duration of time. Some program can help in gaining awareness regarding the working culture
and make it less stressful for the employees and all the staff members.
Analysis of organisation and hospitality business
There are various aspects that will impact the hospitality organisation such as the
Marriott. These aspects are in correlation with the internal and external factors of the business of
the organisation. PESTLE analysis is done to identifying these factors related to the
organisation.
Political: There are many ways by which government can influence the work within the
hospitality industry. Financial supports along with other initiatives from the side of government
have influenced the business of the organisation. This type of support from the government is
necessary for the companies working within the hospitality industry. However, the increase in
the tac rates by the government is making the organisations lose their customers. In addition to
this, terrorists incidents at the tourist attractions and destinations have influenced the minds of
customers making them not to visit that place.
Economical: The high interest rates and the rise in inflation has direct connection with
the customers within the hospitality industry (Salazar, 2018). They affect the future investment
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done by the organisation. Moreover, there are high changes within the interest rates from the
banks have impacted on the organisation to access the required loans and is thus, making them
invest less than before.
Social: These factors affect the business environment depending on the trends present
within the society. It is important for the companies such as Marriott working within the
hospitality industry to understand the mentality of the customers and evolves with their changing
lifestyles. Following the trends from the social media will the company attract more customer
and providing them with their expectations.
Technological: This is a technological era that works with the advancements in
technology. It is important that the organisation working within the hospitality industry is
making use digital and online channels. It helps in providing better experience to the customers.
Marriott must increase their use of technology within their business operations as well as
operations offered to the customers (Sanjeev, and Birdie, 2019). Technology will allow the
customer to book regardless from being present at any geographical place.
Legal: There are many legislations that are related to the hospitality industry. Company
must follow the employment and labour law and offer proper wages to its employees. Moreover,
it must follow all the health and safety at the organisation to avoid having legal suit filed against
the company. This can result in destroying the brand reputation of the company.
Environmental: It is high time that all the organisations within the hospitality industry
takes steps towards protecting the environment and not influence the climate change. They must
work with sustainable sources of energy for generating the electricity within the hotel.
Moreover, the company must have a proper management of wastage.
The micro environmental impacts can be determined with the help of conducting SWOT
analysis that will influence the decision- making by the company. It will help in analysing the
situation before working on the new strategies from the company.
Strengths: The global presence of Marriott has helped the company in increasing its
revenue and making a brand name within different markets as when the revenue of one place
decreases, the company can rely on other regions. Company works with good reputation within
the market and among its potential customers. The services provided by the company makes its
customers stay committed to the company and not switch to any other company. Marriott has
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nurtured loyal customer base with the help of many loyalty programs. Moreover, the company
values exploring new and innovative ideas by making an efficient use of technology.
Weakness: Company failed to keep the information and data of its customers safe. The
future of hospitality industry will work with the millennials individuals while the business of this
organization attracts the business class and focus more ion families. There are many civil law-
suits in which Marriott is related leading to spoiling its reputations. They have also
overemphasized on the service standards and made everything very strict in the process.
Opportunities: This is a great opportunity for the company to shift its demographics and
attract more millennials and genZ people as their customer base. This will form the opportunity
to grow and position the company as being a youthful brand. In addition to this, companies must
focus more on the emerging economies as they demand for several hospitality services within
the developing countries (Rowson, 2019). There is an opportunity to expand in the related areas
as the hotel are linked to wide range of sectors such as tourism, catering and many more.
Threats: One of the major threat on the business of Marriott is global pandemic that has
resulted in lock- downs leading to declines in the customers. This will make the profitability of
the company to suffer. Along with this, hospitality industry is highly competitive and there are
many hotels running within the same league as Marriott. This will affect the market share to
change drastically. Not to mention, the vulnerability caused from the terror attacks has led to
organisation to face huge risks and be easy targets for such activities.
Importance of SWOT Analysis in decision Making Process
It helps in understanding the internal factors that will influence its ability to gain the
advantage of having new opportunity. It helps in building opportunity that will help in making
decisions that avoid any damage. It addresses the lacking points ad minimising the risks on the
way of deciding for new strategy.
Current and potential trends
The trends in the hospitality industry are continuously changing with the demands and
requirements of its customers. It is important that organisation consider these trends within their
business operations and improve the services provided to its customer. Some of emerging trends
within the hospitality industry are:
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Contactless technology: There are growing software applications involved in the
process of managing the services within the hospitality industry. It helps in providing the
customers with the efficient services based on their expectations. These digital experiences assist
in controlling various aspects within the guests cycle and their stay at the hotel. With the help of
this technology customers can now check in or out from the online means. Moreover, they can
book the services from sitting at anywhere around the globe. The advancements in the contact
less technology will also helps in providing face unlocking system for the hotel rooms just as
they do in their mobile phones.
Smart rooms: Internet has taken over this digital era and is increasing its use in the
hospitality industry. Smart rooms include having access to streamlining services from a smart
phone. All the hotel amenities will be based on the digital platforms. With smart rooms, guests
will be able to control the room temperature and also experience the voice activated controls.
This will allow a comfortable space for the guests of hotels.
Different food options: The current trend within the customers is the preference of
eating vegan foo. It is important at the hotels and other organisations working within this
industry have an option for the vegan food along with the non- vegetarian and vegetarian dishes.
Availability of vegan food has become a priority for the customers.
Contactless payments: There are very few individuals carrying cash for the payment
procedure. With the rise in digital usage, the trend of using contactless payments is increasing. It
helps in improving the customer experience by avoiding the uncomfortable of handling cash.
Sustainability: This is rising and becoming the priority for such businesses. It is due to
there are many negative impact on the environment from tourism so to eliminate and minimise
it, sustainability is followed. Sustainable elements helps in enhancing the guest experience,
decrease the cost of energy usage while lowering the carbon footprint.
CONCLUSION
From the above report it can summarize that hospitality sector provide range of service
to its customers. The current report had analyse scope, size and structure of hospitality sector
so that its different products and services can be identified easily. Also, the report had
examined range of functional and operational departments within hospitality sector. The
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contribution of hospitality in local, national and international level had also been discussed in
detail to get a broader view on concept. Moreover, various anticipated and current skills
requirements in this sector had been closely identified. Various operational roles within
hospitality industry had been also identified to develop better business strategies in improving
the performances. Further impact of various internal and external factors on hospitality sector
had been analysed so that future challenges can be overcome easily. Lastly effect on business
due to changes in current and potential trends in hospitality sector had been closely identified
through various examples in detail.
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REFERENCES
Books and Journals
Chung, K.L. and D’Annunzio-Green, N., 2018. Talent management practices in small-and
medium-sized enterprises in the hospitality sector: An entrepreneurial owner-manager
perspective. Worldwide Hospitality and Tourism Themes.
Filimonau, V., 2021. The prospects of waste management in the hospitality sector post COVID-
19. Resources, Conservation and Recycling.168. p.105272.
Goryushkina, N.E., Vakhrushev, I.B., Akhmetova, M.K., Otto, O.V., Pesotskaya, E.V. and
Voinova, N.E., 2018. The world hotel market: current state and development
trends. International Journal of Mechanical Engineering and Technology, 9(13), pp.618-627.
Ivanov, S., Seyitoğlu, F. and Markova, M., 2020. Hotel managers’ perceptions towards the use
of robots: a mixed-methods approach. Information Technology & Tourism. 22(4).
pp.505-535.
Martínez-Martínez, A. and et.al., 2019. Knowledge agents as drivers of environmental
sustainability and business performance in the hospitality sector. Tourism
Management. 70. pp.381-389.
Martínez, P. and Nishiyama, N., 2019. Enhancing customer-based brand equity through CSR in
the hospitality sector. International Journal of Hospitality & Tourism Administration.20(3).
pp.329-353.
Özdemir, A.İ., Çolak, A. and Shmilli, J., 2019. Business process management in hotels: with a
focus on delivering quality guest service. Quality & Quantity. 53(5). pp.2305-2322.
Pacheco, L. and Tavares, F., 2017. Capital structure determinants of hospitality sector
SMEs. Tourism Economics.23(1). pp.113-132.
Perepelytsia, A. and Yurchenko, Y., 2019. Modern hotel tecnology trends for hospitality
industry. Вісник Харківського національного університету імені ВН Каразіна. Серія:
Міжнародні відносини. Економіка. Країнознавство. Туризм, (9), pp.197-202.
Reilly, P., 2018. Building customer centricity in the hospitality sector: the role of talent
management. Worldwide Hospitality and Tourism Themes.
Ristova, C. and Dimitrov, N., 2019. Digitalisation in the hospitality industry-trends that might
shape the next stay of guests. International Journal of Information, Business and
Management, 11(3), pp.144-154.
Rowson, B., 2019. Marketing for the hospitality industry. In Modern Hotel Operations
Management (pp. 268-297). Routledge.
Rutherford, D.G., 2021. Hotel management and operations.
Salazar, A., 2018. Hospitality trends: opportunities and challenges. Worldwide Hospitality and
Tourism Themes.
Sanjeev, G.M. and Birdie, A.K., 2019. The tourism and hospitality industry in India: emerging
issues for the next decade. Worldwide Hospitality and Tourism Themes.
Singal, M. and Rhou, Y., 2017. Corporate social responsibility in the hospitality sector. Boston
hospitality review.5(1). pp.1-16.
Yang, L., Henthorne, T.L. and George, B., 2020. Artificial intelligence and robotics technology
in the hospitality industry: Current applications and future trends. Digital transformation in
business and society, pp.211-228.
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