Contemporary Hospitality Industry Analysis and Future Trends

This report provides a detailed analysis of the contemporary hospitality industry. It begins with an introduction to the industry's growth and significance, emphasizing its impact on GDP, employment, and investment. The report then delves into the structure, scope, and diversity of the hospitality sector, examining various businesses like hotels, restaurants, and travel agencies. It explores organizational structures, using examples like Hilton Hotels and McDonald's, and discusses the role of hospitality-related organizations and professional bodies such as the British Institute of Innkeepers and the British Hospitality Association. The report further examines staffing requirements, roles, and qualifications within different hospitality sectors. It also evaluates current issues affecting recent developments and predicts future trends, including their potential impact on the industry. The conclusion summarizes the key findings and insights presented throughout the report, highlighting the dynamic nature of the hospitality industry and its ongoing evolution.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
1.1 Structure, scope and diversity of hospitality industry...........................................................1
1.2 Organisational structure of different hospitality industry.....................................................2
1.3 Role of hospitality related organisation and professional bodies in this sector....................5
2.1 Staffing requirement of different hospitality industry..........................................................6
2.2 Roles, responsibilities and qualification requirement of hospitality staff.............................7
3.2 Current image of industry.....................................................................................................8
TASK B ..........................................................................................................................................9
3.1 Evaluation of issues which affect recent developments........................................................9
4.1 Predicted future trends and developments in hospitality industry......................................11
4.2 Impact analysis of trend and developments........................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
In modern era, tourism and hospitality industry is growing fast. Contemporary hospitality
management communicates latest developments or improvements as well as thinking on
management of hospitality and tourism business in whole world (Bharwani and Jauhari, 2013).
For attracting large number of consumers they have to make proper and appropriate
developments of distinctive tourist destination. In industry which is related to hospitality
includes different provision of accommodation, meals along with drinks in distinctive tourist
destinations. There are five factors which having a impact on industry which includes Gross
Domestic Product, employment, exports or in-bound spending, taxation as well as investment.
Present report is based on hospitality industry which includes different restaurants, hotels, travel
and tourism etc. Below mentioned report, discussion based on structure, scope as well as
diversity of hospitality industry (IT and Internet’s Impact on Tourism and Hospitality Industry:
Implementations of technologies for Hilton Hotels Group, 2017). Along with this analysis of
staffing requirements of distinctive hospitality industries has to be discussed.
TASK A
1.1 Structure, scope and diversity of hospitality industry
Hospitality relates to business which assist in entertaining clients or other official visitors.
It assist in maintaining relationship between visitors and employees of the firm who are working
in this sector. When staff members provides or offers better services to their guests then will aid
in increasing goodwill in competitive market. In hospitality industry, different companies should
include which are hotels, restaurants, bars etc. For instance, Thomas Cook provides different
services to their consumers and working in same industry (Bill Xu and Chan, 2010). Another one
is McDonald, this is also working in hospitality industry and deliver best products and services to
their consumers. Employers of McDonald provide various offers and schemes to their service
users which will assist in increasing sales and generate more revenue.
Scope of hospitality industry refers to range of businesses which delivers distinctive
services as well as facilities to their visitors which are accommodation, entertainment etc. In this
sector, industries and business entities having a high growth opportunities in market. Restaurant
are having large sector in hospitality industry and it provides employment to person (CG
Davidson, McPhail and Barry, 2011). Along with this these are followed by pubs, bars etc. with
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hotel sectors which increasing slowly. This sector having a impact on community in a positive
way which provide better employment to members of society which reduces problem of
unemployment. In hospitality industry, restaurant sector help employees in earning income from
other industries and in this approx. 2.4 million people are employed. Hospitality industry in UK
having fourth biggest industry in terms of employment and it has been contributed estimated £57
billion Gross domestic product to UK in 2014. In market, gross fixed capital investment has been
done by them which is approx. £5 billion. Along with this foreign exchange export earning is
£7.4 billion. In hospitality industry, average turnover of employees is 31%. There are different
type of ownership in hotel industry is private owned, leased, managed hotels as well as
franchises (Harkison, Poulston and Ginny Kim, 2011). Hospitality sector of UK involves
distinctive businesses such as foods and beverages, accommodation, pubs, bars etc. In industry,
there are some big players includes Whitbread PLC, Hilton Hotel, McDonald.
Hospitality industry covers wide range of organisation includes travel and tourism,
restaurants etc. For example, McDonald is a restaurant and it provides best and qualitative
products and services such as food, drink etc. to their consumers which will aid in fulfilling
needs and wants of them. Just like Thomas Cook is a travel agent and provide better services
related to travel and tourism and also provide accommodation to their service user (Hsieh, 2012).
In hotel industry, Hilton hotel provide banquet for conducting any event or conferences to
companies and deliver best services to their consumers. In this sector, opportunities for growth is
high.
1.2 Organisational structure of different hospitality industry
Structure of firm refers to different operational activities which they are doing in business
entity. Activities include task allocation, coordination along with supervision which assist in
attaining goals and objectives of business entity. It determines that how roles and responsibilities
as well as power should be assigned, controlled and coordinated so that they can flow correct
information among different levels of administration (Ip, Leung and Law, 2011). This structure
depends on objectives as well as strategy of company which is made by employer to reap targets
and success in competitive market.
There are different type of structure which they can use which includes functional,
divisional and matrix structure. Functional structure is a common structure which can be used by
business organisation as it divides into small groups which is based on specialized functional
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areas like finance, marketing etc. Divisional structure is also a part of structure in which groups
divided according to function or can be correspond to products. Matrix structure is a type of
structure in which staff members can report to relationship among workers and higher authorities
that they have to set as a grid but not in traditional hierarchy (Jani and Han, 2011).
In large business entities, for example Hilton hotel level of management or administration
increases and structure of firm become taller. There are two type of organisational structure there
which company can use whether it is tall or flat structure (Janta, 2011). If they are using tall
structure then business entity having hierarchy with strong managerial control as well as they
have to do proper supervision of employees. If staff members of Hilton Hotel adopting flat
structure then they are having less management levels and this will increases workload of
manager and each employer has to put more staff to control.
(Source: Organisational chart of Hilton Hotel, 2017)
To do better operations and want to attain more success then they can use both tall and flat
structure. In Hilton Hotel, tall structure assist managing director of company as well as flat
structure helps in managing different departments at each level. When employer of company is
using tall structure then they do not have any direct communication among their subordinates
(King, 2010). Operational areas are reception, restaurant, bar, meeting rooms etc. Functional
areas includes sales and marketing, human resource, accounting and administration.
Different departments in Hotel are:
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Illustration 1: Organisational structure of Hilton Hotel, 2017

 Food and beverage department: In this they provide food and beverage to consumers
which helps in fulfilling needs and wants.
 Production department: In this employees have to identify needs of them and do
production of products accordingly.
 Marketing: Manager of Hilton hotel have to do marketing of products and services as
well as do promotion of food items which they are delivering to service users.
 Finance department: For doing any operational activity, finance or funds is required and
for that manager of this department make budgets so that they can not face any issues in
fulfilling that (Kong, Cheung and Qiu Zhang, 2010).
Another organisation is McDonald and in this they are following flat structure so that
easily communication can be done among staff members. Executive organisational departments
are chairman, chief executive officer as well as chief operating officer. Departments are
corporate affairs, marketing, human resources, regional managers, finance, information as well
as strategic planning. Functional departments are legal, consumer services, franchising, security,
hygiene, restaurant services etc.
(Source: Organisational Chart of McDonald, 2017)
Employees of firm have to use appropriate structure as it is important for making correct
and relevant decision making. If small organisation wants to attain growth then they have to add
some management levels so that their roles and responsibilities become more defined. This will
assist business entity in expanding growth in market and resolve their issues associated to human
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Illustration 2: Organisational Chart of McDonald, 2017

resources which involves managerial authority (Law, Buhalis and Cobanoglu, 2014). If they are
adopting correct structure then this will aid in reaping goals and objectives as well as accomplish
targets.
1.3 Role of hospitality related organisation and professional bodies in this sector
There are so many companies who are working in hospitality industry as well as
professional bodies in UK which assist in providing manpower as well as skilled person to them
which will aid in fulfilling desires of consumers. These professional bodies assist in providing
information which are essential to them for improvement and changing its policies. Business
entities includes Institute of Hospitality, British institute of Innkeepers, People 1st, Springboard
UK, PACE etc. Without these, hospitality as well as small businesses would put more effort in
current economic climate (Ramanathan and Ramanathan, 2011). In this information or data
covers distinctive issues which include nation as well as skills strategies, apprenticeship, training
as well as national registers.
British Institute of Innkeepers is a charity which is registered and also a private limited
company which was founded in 1891 by getting support of Brewer's society. It is a professional
body whose mission is to promote their training programmes or education of person who are
preparing for their day to day premises and increases their sales. These bodies having a large
significance to Hilton Hotel. These bodies provides lot of information for owners along with
managers of their companies that provide opportunities.
British Hospitality Association is related to restaurant which is non-government body
which represent hotels, clubs, restaurants as well as other hospitality related organisation (Ryu,
Han and Jang, 2010). It promotes interests of hospitality industry to regulatory bodies and it
operates by membership based system.
Another one is Institute of Hospitality and this is a professional membership body for
managers. It provides aspiration to managers who work and study in hospitality as well as
tourism industries. This association provide help more than 10000 professionals in 100 countries
which aid in growing knowledge and expertise by providing or offering a wide range of
membership services which is having a high quality. Mission statement of firm is to provide help
to other members to achieve their high potential within hospitality industry by professional
recognition, status and professional development (Ryu, Lee and Gon Kim, 2012).
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Springboard UK is also a registered charity which helps young people to achieve their
potential. Along with this they support to unemployed people of any age into work as well as
people have to face multiple barriers to work. For providing better services they have to use or
adopt appropriate resources to attain success in hospitality industry.
2.1 Staffing requirement of different hospitality industry
Hospitality industry includes different fields within service industry which includes
lodging, event planning, transportation as well as additional fields within tourism industry.
Usage rate or vacancy rate is an important variable for hospitality industry. Staffing in hospitality
industry is necessary by hiring new employees for management as well as operational role. There
are different hospitality industries which includes hotels, restaurants or travel and tourism. In all
industries staffing is necessary to attain goals and objectives as well as reap targets. For
delivering better products and services to consumers skilled labour is necessary which will assist
in attaining objectives. In restaurant industry, McDonald provide employment more than approx.
15000 employees in its outlets in different cities of UK (Sainaghi, 2010). It includes management
roles on food and services, business manager, finance employer as well as other staff related to
basic operations. They provide different jobs to many people in distinctive roles and
responsibilities. There are some various key jobs to different people who are working in
hospitality sector of UK which includes catering manager, hotel, restaurant manager, counter
boys, outlet cleaner, kitchen operation's in charge, housekeeping staff.
In terms of compensation, organisation having tough competition in competitive market
and these are based on roles and responsibilities. In different industries of hospitality sector
whether it is hotel, restaurant or any travel and tourism business staff is required to provide or
deliver better products and services so that consumers cannot face any issues and according to
that company can increase sales and generate more revenue (Sirirak, Islam and Ba Khang, 2011).
In McDonald, they have to analyse needs and wants and have to recruit skilled labour which help
in preparing best and quality foods to service user. Employees of Hilton Hotel having some
characteristics which helps in performing their roles in a better way which includes:
 Person who are recruiting for company having a specific degree for getting a position in
job.
 In hospitality industry, individual person having a diploma.
 Some certificates are required for recruiting best employee.
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Likewise, in Hilton hotel they have to recruit skilled person in different departments as
they helps in preparing budgets for spending or they can do appropriate marketing which will
helps in doing proper promotion of products and services (Tavitiyaman, Qiu Zhang and Qu,
2012).
In Travel and tourism sector, new staff members give new ideas for improvement of
different tourist destinations which aid in attracting large number of visitors. So, it is essential
that they have to recruit new employees to develop places.
2.2 Roles, responsibilities and qualification requirement of hospitality staff
Hospitality sector having a huge area and that having a different range of skills. When
manager of companies recruit new employees than they provide a strong mix of core
qualifications which having a professional requirements.
Some essential roles of hospitality staff includes:
 They have to perform or complete their work in a better way so that they can attain their
goals and objectives.
 Staff members of Hilton Hotel have to maintain environment of an entity.
 While providing products and services appropriate resources should be utilised in a
proper and effective manner (Zhang, Ye and Law, 2011).
 Present food items or services to their tourists or visitors in a best way.
Manager of Hilton Hotel have to give proper attention to their staff members by
conducting training programme so that they can deliver better services to their consumers and by
training they can develop their skills and knowledge of their employees. Responsibilities of staff
which are divided on basis of their departments in hotel and their job position. Main
responsibilities of staff members of Hilton Hotel includes:
 Employees try to offer best and qualitative products and services at a right time.
 Appropriate and impressive strategy.
 They have to deliver high standard care to visitors by using or adopting advance
technology or equipments (Hospitality Management, 2017).
 While preparing food items to fulfil needs and wants of consumers or to variety tasty
nutrients.
 Manager have to use relevant advertising tools and techniques to promote merchandise of
Hilton Hotel.
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Employer have to provide proper and appropriate training so that they can meet needs of
industry. When employees providing care to their tourist then it is necessary to them that they
have to maintain or enhance standard of their staff members (Kusluvan and et. al., 2010). Role of
administrative bodies in hospitality industry related to services which will assist in providing
better services to their customers. Real management functions in hospitality includes business
management, asset, logistics management, financial, staff, administration, risk management etc.
Employees of business entity have to provide proper training which assist in developing skills
and attaining knowledge so that they can deliver better services to them. In competitive industry,
proper environment should be provided for managers as well as performance requirements are
very high. They have to improve their performance of their employees so that they can conduct
impressive programmes so that they can attain success in market.
There are some essential qualifications which are required for hospitality management
includes:
 Business management: It is necessary at every stages of administration of hospitality
industry as it can only be done by providing training to their employees (Bharwani and
Jauhari, 2013).
 Accountancy: It is having a fundamental role in hospitality industry as it assist in
providing funds to all departments. So, for this manager have to recruit experience
person.
 Administration: In hospitality sector, this department is very complex as it assist in
managing all work and provide better services to their consumers which will aid in
reaping targets.
3.2 Current image of industry
In hospitality industry, there are different sectors which delivers better facilities to their
consumers includes leisure, foods and beverages as well as accommodation services in
distinctive type of businesses which includes bars, restaurants, hotels as well as other duties of
hospitality (Bill Xu and Chan, 2010). Image refers to impression which a individual person,
business entities as well as merchandise presents to a public and image is a term which help
organization in boosting sales and according to that they can generate more revenue. Manager of
Hilton Hotel have to built or maintain their brand image in competitive market as it refers to
general expression of merchandise which is manufactured for potential consumers.
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Regional hotel sector is expanding or growing but in most cities it increases slowly. It
forecast economic slowdown by 2.3%. Hospitality industry is optimistic and in this staff
members of Hilton Hotel offer best facilities to their visitors. Brand image as well as awareness
and environment created by multi-channel raise competition. They have to meet challenges in
hospitality sector by using initiatives with strategic marketing (CG Davidson, McPhail and
Barry, 2011). Goodwill and brand image is very much essential for business entity as consumers
take correct judgement by checking reviews and image in competitive market that Hilton Hotel
provide best services and facilities to their service users. Hilton hotel is a famous hotel as it
provides qualitative products to their visitors. Staff members have to adopt updated technology
as well as tools and techniques which aid them in providing better services to their service users.
Image of business is also a tool which assist in attracting visitors and for this manager of
Hilton Hotel have to adopt appropriate as well as relevant strategies at international level which
assist in fulfilling needs, wants and desires of service users. For attaining success in domestic
and international market, then higher level authorities have to use creative and innovative ideas
for development or improvement which help firm in boosting their image in competitive market.
Staff members of Hilton Hotel have to use correct process for doing planning which will succour
in reducing risk and helps in overcoming from challenges which they are facing. In reaping
success in community, they have to deliver products and facilities according to needs and wants
of consumers (Harkison, Poulston and Ginny Kim, 2011).
Hilton Hotel have implemented many plans and new as well as innovative ideas to reduce
risk by minimizing losses and earning more profits. Image is necessary for attaining success in
hospitality sector for expanding growth in economy.
TASK B
3.1 Evaluation of issues which affect recent developments
Operational issues are occur in the business and it affect the performance as well as
having a adverse impact on strategy execution. Hospitality operations management is considered
as be the two levels which includes strategic operations administration along with unit level. It
includes strategic concerns which includes location, integration, affiliation, implementation and
adaptation. Result areas are assets, productivity, service, income as well as quality. Managerial
issues are those which are faced by employees of firm to attain desired results. Legal issues are
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