The Contemporary Hospitality Industry: Economic Impact and Analysis

This report provides an overview of the contemporary hospitality industry, focusing on franchising and licensing models employed by businesses like McDonald's and Burger King. It examines the interrelationships between various departments within hospitality businesses, such as the HR, F&B, and purchasing departments, highlighting their coordinated efforts. Furthermore, the report analyzes the hospitality industry's significant contributions to local, national, and international economies. It explains how the industry attracts tourists, boosts infrastructure, creates employment opportunities, and fosters global economic integration through hotels, restaurants, and travel services. The report emphasizes the industry's rapid growth and its role in providing services and contributing to economic development at all levels.

Contemporary Hospitality Industry
Contribution of Local and National Economy
Hospitality industry is the fastest growing industry,
which provides various services to the customer and
indirectly contributes towards the local, national and
international economy.
Local Economy- As hospitality sector consist
of various business, which provides varieties of
services to the tourist and attracts the tourist towards it.
Therefore tourist incur expenditure on various services
and help in the growth of local economy by such as
building of roads and other infrastructure facilities and
also leads improvement in the transportation services
which helps in the growth of local economy.
National Level- With the fast growth of the
hospitality industry, it is providing enhanced services
to the customer. This created employment
opportunities for the individuals and improved their
standard of living. This is the major contribution of the
hospitality business towards the growth of national
economy.
International Economy- Hospitality sector
consist of various hotels, restaurant and other travel
and transportation services, which provides services all
across the globe. It has made tourist to easily avail the
service all across the glove and therefore leads to the
integration of the nation’s economy.
Interrelationships
All the departments within the chosen hospitality
business works in coordination with all other
departments such as HR department works in
interrelationship with the food and beverage
department as manager at F&B department is
provides information about the requirement of the
trained chef within Travelodge so that HR department
can start recruitment and selection process
accordingly and moreover purchase department
works in a coordinated manner with the finance
department so as provide information about the
purchase of certain necessities and acquire funds for
the same purpose. This leads to the smooth flow of
business activities within Travelodge.
Franchising and licensing
As there are wide variety of business within
the hospitality sector, such as food and
beverage sector in which companies like
McDonald, Burger king has started
licensing and franchising of its business all
over the globe, this benefits the customer to
enjoy their service. This led to the global
development of hospitality industry and it
leads the business to attain maximum
profitability and productivity.