The Contemporary Hospitality Industry: Roles, Trends, and Analysis

This report provides a comprehensive analysis of the contemporary hospitality industry, with a specific focus on the Ritz Hotel. It begins with an introduction to the industry, exploring different types of businesses, including food and beverage, accommodation, and travel and tourism. The report then delves into the operational and functional departments within a hotel, such as housekeeping, front office, human resources, marketing, finance, food and beverage, and the kitchen. The contribution of the hospitality industry to local, national, and international economies is discussed, highlighting its role in creating employment, generating income, and earning foreign exchange. The report further investigates various operational roles within the industry, such as front office manager, head of housekeeping, human resources manager, and staff in the food production department, detailing the required skills and qualifications. A PESTEL analysis is conducted to assess the external factors affecting the industry, and a SWOT analysis is performed to evaluate the strengths, weaknesses, opportunities, and threats faced by a hospitality business. The report also examines the implications of current and potential trends in the industry, providing specific examples to support its findings.

THE CONTEMPORARY
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................4
LO1..................................................................................................................................................4
P1 Explore different types of business within the hospitality industry..................................4
P2 Examine a range of operational and functional departments............................................5
P3 Discuss the contribution of hospitality industry................................................................7
LO 2.................................................................................................................................................8
P4 Investigate the range of different operational roles within hospitality industry...............8
P5 Examine skills required for roles in hotel with current shortage....................................10
LO 3...............................................................................................................................................11
P6 PESTEL analysis of industry..........................................................................................11
P7 SWOT analysis of hospitality business...........................................................................12
P8 Implications of current and potential trends....................................................................14
CONCLUSION..............................................................................................................................15
References......................................................................................................................................16

INTRODUCTION
Hospitality industry is present days is grown in positive manner. This industry is
generated major revenue for countries economies. It is the crucial and effective element of hotel
industry. (Radojevic, Stanisic and Stanic, 2015). The Report is based on Ritz Hotel. It was
established in year 1906 in London, England. It has more than 111 rooms. It offers a wide range
of services to the customers such as catering service etc. Study lays investigate the range of
different operational roles within the industry. Examine the skills which are required for roles
within hospitality industry and current skills which have shortage. It will assess the factors of
PESTEL model that affect to development of hotel operating. Report will also outline the SWOT
analysis of the company and review the decision-making process. Further, it will explain
appraisal implications of current and potential trends in hospitality industry with specific
examples.
Presentation lays explore by different types of business within hospitality industry. This
will examine by the range of operational and functional departments in hotel. It will also discuss
by the contribution of hospitality industry to local, national and international economies.
LO1
P1 Explore different types of business within the hospitality industry.
Hospitality industry is the very board category within the service industry which is
includes various businesses and services. It is the backbone which is comprised to customers
services and the concept share by all segment of industry. There are five types of businesses
which are includes in hospitality industry which are as follows:

Food and beverages:
In hospitality industry, food and beverages business is very important business. This is
main element which is help to increase profit and growth of whole industry. It is the best and
effective business of hospitality industry in current sets. It is the largest aspects of hospitality
industry and this includes high end restaurant, fast food, catering and many other operations. For
example: if their restaurant is connected from hotel, then customers are directly attracted towards
it. It is beneficial for hotel and this business are provide the best product and services to
customers. Products such as food like fast food, dinner, lunch, drinks etc. other hand, provide
best services like take proper order form customers, take care of them form entry to exist.
Accommodation and lodging:
Hospitality industry is also considers the accommodation and lodging services. In this,
hotel manager is provided the best and effective room, bad and breakfast services. It is the board
segment of hospitality industry. This types of business is run in hotels and resorts. In this
business is mainly focused on providing the best customers services to customers related to room
and cleaning. For example: Ritz hotel manager is take care of customers and provide the best
accommodation and lodging services to them in effective manner. In this business hotel manager
is provided best services like clean room, safe hotel environment, Wi-Fi services etc.
Travel and tourism:
Another best segment of hospitality industry which is transportation. This involves
airlines, bus, trains, ships and staff for each. This type of business is best and most of the peoples
are like this services because with the help of these peoples are move one place from other place.
For example: if their hotel is provided transportation services to their customers, then they are
not move towards other. It is best for increase growth and profit of hotel business. This type of
business provide various services to their customers like in flight and ship staff is serves food to
customers.
P2 Examine a range of operational and functional departments.
The operational and functional departments are most important and effective for hotel
business. These departments are help to hotel manager for manage all functions and activities
which are happens in industry and hotel. Operation manager have jobbed to meet deal with
customers, seniors and whole staff members for keep good and smooth running of hotel. In the
hotel have major four types of operational and function departments such as housekeeping, front

office department, human resources, marketing, finance department, food and beverages services
department and kitchen department. Explanation of each department are as follows:
Housekeeping department:
Housekeeping department is an operational department in hotel. It is very important
management of Ritz hotel. This department is managed guest rooms and cleanliness of open
areas within the hotel. Hotels are mostly depends and survive on sales of room, hygienic food,
laundry services etc.
Front office department:
Front office department is main and core operational function of Ritz hotel. This involves
reception services as well as sales, marketing, customers queries, housekeeping and reservation.
This is main place where guest go at the time of arrives hotel as well as it gives the best
impression on customers.
Human resources department:
Human resources department is very important and beneficial department of Ritz hotel.
This functional department is hire and fire the best candidates for team work and vacant post.
Other hand, also allocate works and responsibilities to other departments for expenses. With the
help of this department hotel manager is highly able to manage all activities.
Marketing department:
Marketing department is main functional team of hotel because they help to hotel for
promote their best services at marketplace. It is the best and effective for hotel business in order
to increase their profit margin and sales.
Finance department:
Finance department is also functional department is hotel industry. This plays an
important role in industry in effective manner. This department is allocate funds to other
departments for paying their expenses like marketing department is promote services at
marketplace in that finance department is pay funds.
Food and beverages department:
Food and beverages department is one of the main and important department of Ritz
hotel. This department are prepared food items and take care of those items. This department is
put forward best services of food and drinks. Most of the customers looks towards this
department and attract towards hotel.

All departments have interrelationships within the hotel for example: human resources
and housekeeping department: Both departments are interrelated with each other in Ritz hotel.
Human resource team is help to hire and select candidates for team and other hand, housekeeping
department is responsible for create guidelines for this team. By this both are interrelated with
each other.
P3 Discuss the contribution of hospitality industry.
Hospitality sector in the UK is highly contributed in economies which are local, national
and international. It is important for economic development and growth factors. In the present
this industry is developed very fast towards economic growth. Hospitality industry is the largest
export services industry and one of the biggest employers in world. This industry is generated
profit and revenue from local economies which is direct spend money in hotel and other venues.
This business is impact to business in positive and also in correct ways because this help to
create employment for peoples more than 10% of UK workforces. Hospitality sector includes
various sectors like food, beverages, contract catering, pubs and clubs. This creates 327 million
jobs for peoples who are job seeker. Other hand, support 10% of work forces. This significantly
contribute to economies of different nations are as follows:

Create employment:
Hospitality industry is biggest contribute for creating employment services for peoples
and its economics. This provides the direct job opportunities as tour guides, planner and
operators in hotel and resort. Direct employment is contributed in economy which are local,
national and international. The UK hospitality industry is estimated have directly employed 2.9
million peoples in the 2014 but it will be increases by further years. The activities are consists in
terms of this, gross value is added in GDP like tax revenue, export and investment.
Generate income:
Mostly government is earned money and revenue with this industry. In the hospitality
industry travel and tourism sector is highly put money in plans these days. Other sides, income is
generated by use of several services such as hotels, restaurant and other places. Those facilities
are help to improve and attract more customers and tourist at place of growth sectors. This
support in international economy.
Foreign exchange earnings:
It is most important and effective contribution of this industry which is help to make
better economy of the country. The foreign exchange earning in UK is 2% of total export
earnings. This industry is spending on the goods and services which is used by international
students. By this, hospitality industry is contributed in the other which is reflect expenditures on
the non-hospitality products and services.
By this, hospitality industry is highly contributed in local, national and international
economy of United Kingdom. The uses of franchising and licensing agreement hotel industry is
able to develop globally for example: franchising is used by other person and against of this they
pay money to peoples. Like if hotel manager is take franchise for develop their business.
LO 2
P4 Investigate the range of different operational roles within hospitality industry.
In the hospitality industry have various job position and have their own specific roles.
Those roles are help to achieve goals and objectives of company at marketplace. Those job
positions such as hotel manager, head of housekeeping, front office manager, human resources
manager and finance manager etc. that job roles are required some specific skills and
qualification which are as follows:

Front office manager:
Manager of front office department is most important part of Ritz hotel. This has strong
sense of organize, coordinate with other staff members at hotel. Front office manager have plays
a very important role in Ritz hotel. Front office manager responsible for answering the queries of
customers, directing for correcting queries to correct personnel (Kandampully, Zhang and
Bilgihan, 2015). They have responsibility to provide best and friendly services to customers that
helps to attract large number of customers towards hotel. Manager is required some specific
skills that are information technology, effective communication skills which is written and
verbal, ability to stay under pressure.
Head of housekeeping:
Housekeeping department is highly responsible for management of guest room and
cleanliness of the public areas in hotel. This management of highly required in Ritz hotel because
customers are attracted with best housekeeping services. This department is plays a very
important role in Ritz hotel (Lopes, 2016). They have responsibility to check cleaning in hotel on
daily basis. Maintaining guest room in high standard quality and services. Responsible for repair
possible damages which can affect to customers. Head of housekeeping is also responsible for
divide work in staff members and take of customers comfort. Housekeeping manager is requires
some skills and qualities which are loyalty, flexible as per situation, caring for work and most
important attentive for provide clear instruction to staff members.
Human resource manager:
Human resource management is an important function of the organization. Department of
human resource plays a very important role in Ritz hotel for best result of work. Human resource
manager is responsible for hiring eligible candidates for team and train them in effective manner.
They are also responsible for managing all human activities which are happens in hotel industry.
They responsible for overseeing employees attendance and working schedule. Human resource
manager of Ritz hotel must have required skills such as excellent communication skills,
understanding employment legislation.
Staff in Food production department :
Food production staff plays an important role in Ritz hotel in effective manner. They are
responsible for all the functions related with hotel kitchen like food preparation, storage,
cleaning, dishes washes, cooking equipments in hygienic and effective manner (Marasco and

et.al., 2018). The most important skills which are required for kitchen staff such as washing,
peeling, shipping and cooking food. Those are very important skills of kitchen staff members.
P5 Examine skills required for roles in hotel with current shortage.
As per above discussion, various job roles and positions have in Ritz hotel. They have
plays their very important role for achieve goals and objectives of hotel. Every job position and
related staff members are required some skills which are as follows:
High level of customers services:
High level of customers services are required for staff members of Ritz hotel. That is very
important skills which is effective and valuable for the business and its growth factor. Front
office manager and staff are highly requirement of this skill because they are face of hotel. Front
desk is place where customers are arrives and ask their queries. It is the main part from
customers are satisfied and attracted.
Good communication skills:
Working in hotel can both physical and mental demands are more. Human resources
manager and hotel manager have requirement of good communication skill (Kim, Vogt and
Knutson, 2015). It is very important to have communication skills either written or verbal. It is
required for human resource manager because they have responsible for hire and give
information about policies to employees and new hires. With the poor communication skills
employees and new joiners candidates are not understood properly policies and regulations of
Ritz hotel and by these problems are creates in other manner.
Behavioural skills -
Most of the behavioural skills are social in nature. Management of the organisation
should provide training to the employees for developing these skills. The growth and
development of workers depends upon the way in which firm provides behavioural training to
the staff. They must maintain positive behaviour towards the guests of the hotel. These skills are
essential to perform operational level roles in Ritz Hotel.
Ability to multitasker:
In the hospitality industry staff members are requires to done various and multiple work
at the same time. It is difficult to manage but highly important. It is very important skill which is
highly required for housekeeping manager and staff members. This includes various elements
which are help to become a multitasker such as time management, schedule for work and critical

thinking. This skill currently have shortage in Ritz hotel which is had to adopt by there staff
members. For that management can give training by creating situation for employees and asked
about solutions in industry.
Be flexible:
Be flexible for staff members to be flexible with their work in effective work which is
most important and effective to have for think about critically and flexible. In the season time
hotels room are tightly booked and various customers have in hotel (Grobelna, 2016). In this
every staff member needs to done work in flexible manner and overtime. But, this skill currently
shortage in Ritz hotel. There is had required to develop this skill in staff members for work in
effective manner and provide the best customers services to customers.
Lack of those skills are created gap in hotel staff members in relation to different
operational roles. For overcome those gaps here is required to give training to employees for
improve those skills. Those skills are very important and effective for staff and operational roles.
In order to overcome those gaps the most effective solutions such as training by creating
business situation. It is effective and best way of addressing theses skills in effective manner.
LO 3
P6 PESTEL analysis of industry.
PESTLE analysis is a tool that helps the company to evaluate various types of factors that
exists in external environment outside the business. These factors cannot be fully controlled by
the employer of the firm.
Political factors: The legal rules and regulations of various markets may lead to affect the
operations of Ritz. For example, lower taxation policies in the western hemisphere area bring
business opportunities for the Ritz. Whereas, increased trade restrictions and regulatory scrutiny
may lead to bring issues for the company.
Economic factors: The fluctuations in the foreign exchange rates leads to bring influences
throughout the economy. The negative impacts of it can be on Ritz hotel is it will lead to affect
the investment plans in both short term and long term (Phadermrod, Crowder and Wills, 2019).
Economic factors can also bring positive impacts for the Ritz hotel such as increase in disposable
income of the customers etc, easy availability of the liquidity in equity markets and expand in
international markets.

Social factors: The number of people travelling to overseas is increasing and it will lead to bring
positive influences on the Ritz hotel's operations. The company may get negatively impacted if
its marketing and promotional efforts are not in link with the social attitudes, behaviour, beliefs
and culture of people across different nations.
Technological factors: Ritz hotel may get positive impacts and influences due to the upgraded
technology and innovations. For example, Ritz hotel can improve the customer experience by
providing them facility of online rental services like Airbnb, this will help the individuals to
provide rooms on rent directly to travellers. Ritz hotel may get negatively impacted due to the
technological factors such as it has to incur more on research and development activities at both
micro and macro level for improving the technology and operations of company. This will lead
to increase the overall cost for company and may affect the profitability as well (Chan and et.al.,
2017).
Legal factors: Ritz hotel focuses on compliance with and adhering to various legal and
regulatory practices in terms of health and safety of employees, equal rights to employees,
discrimination, flexibility at workplace, proper working hours, etc. All this leads to make
employees satisfied and overall it helps in increasing the brand image and reputation of the
company (Kuo and et.al., 2016). But, Ritz hotel operates the business at various locations across
the world and it should effectively evaluate and follow the legislations applicable on the
business, operations and activities. This may create complexities in operating the business
effectively.
Environmental factors: Ritz hotel may focus on investing into environmental factors such as
renewable technology, waste management practices and it can gain positive benefits in term of
increased brand image and trust of customers (Köseoglu and et.al., 2019). But, the regular
scrutiny from the government and environmental agencies can add to operations cost of
company. Extreme weather may also increase the cost of the operations of the company and it
may have to invest in making the supply chain more flexible.
P7 SWOT analysis of hospitality business.
Ritz hotel can make use of the SWOT analysis for identifying the strengths, weakness,
opportunities and threats of the company and this can also inform the decision-making process.
Strengths:

 Ritz hotel is operating at some of the famous locations across the world. Hotel decides to
operate at the locations after conducting the research of where customers would lead to
prefer for availing luxurious accommodation.
 The employee selection of the Ritz hotel is based on the effective procedure which
ensures selection of skilled and talented people (Gürel and Tat, 2017). Ritz hotel also
ensures that effective training is also provided to its employees and staff so that they
follow core principles.
 Ritz hotel should focus on adopting a ritual known as line-up so that it can get all the
stakeholders across the borders in order to create operational and financial synergy.
 The Ritz hotel has maintained effective and robust guest feedback system. Hotel also
aims at tracking the guest behaviours on the regular basis and maintains a file on each
guest. This data is maintained so that company can offer highly personalized services to
the customers.
Weaknesses:
 Offering personalized services to customers is very costly for the hotel, management of
the firm should provide high attention for controlling the cost. The core weakness of the
organisation is that it provides personalized service experience across different locations
(Bull And et.al., 2016).
 Providing luxury services to the millennial generation customers and making them
satisfied is a daunting task for the firm. This is because, for the customers free Wi-Fi and
comfortable sleeping space is not consider as a luxury service.
 There are continuous fluctuations in the demand of clients across various regions and
segments of market. Ritz who have operations across the world-wide, meeting changing
needs and wants of people is very difficult task.
Opportunities:
 The demands for luxurious products and services is increasing globally for various types
of products and services. As well as the demand for hotel services is also expected to be
grown in next two decades. And this is considered as the fuel expansion strategy for the
Ritz hotel (Blockeel and et.al., 2016).
 Ritz hotel is having the opportunity of opening new hotels in untapped markets of the
countries. The company should enter into Asian markets as it has great potential benefits.

 Ritz should invest funds for improving and promoting the security arrangements of the
hotel and this will lead to bring many opportunities in form of attracting large number of
customers, improved services and customer experience, increase in trust and loyalty of
customers. Overall the brand image and reputation of company will be improved.
Threats:
 The competition in the hospitality industry is day by day increasing which may act as a
threat to the Ritz hotel as well. Companies that are giving tough competition to Ritz Hotel
are Starwood Hotels, Accor Hotels, Cendant Corporations, Best Western and Hilton
Hotels Corporation (Barkauskas, Barkauskienė and Jasinskas, 2015).
 New firms that are entering in hospitality industry are having more skilled employees
that are having innovative ideas for providing products and services to the customers.
Therefore, Ritz should develop new strategies for attracting customers.
P8 Implications of current and potential trends.
There are various current and potential trends which are help to Ritz hotel for providing
best services to their customers. The current trends such as technology advancement, focus on
mobile booking, social media, focus on sustainability, lifestyle level changes etc. With the help
of those trends, manager of Ritz hotel is able to increase their profit and profitability of business
at marketplace (Ram, 2018). Current and potential trends are as follows:
Technology advancement:
Technology advancement is effective and best trends which is grown in current trends in
effective manner. Advancement in technology will help the firm to done work in smooth and fast
manner. This is very important trend which is effective and best for Ritz hotel in order to
increase sales and profit. For example: One of the famous invention in the field of Artificial
Intelligence is Robots. This help to reduce work of human staff members. Robot is the best
product to meet with current trends in hotel industry. In order to attract more customers towards
hotel here is required to use robotic services. The technological factor is one of the important
part of external environment. The impact of technology on the business can be negative or
positive (Jones, Hillier and Comfort, 2017). Because, technological factor is includes various
factor like other hotel brand is also use this trend by this technological factor can impact to
business.
Focus on mobile booking and payment:

Recently this trend is survive in the industry and impact to business. Most of the
customers are book their hotel room with mobile phone app and also done payment with this. For
example: if Ritz hotel manager is use online booking and payment, this is effective and best for
increase sales and profit of business in effective manner. For that hotel manager is requires to
develop their online website and app which is help to meet this current trend which is run in
market place. This is good and best for hotel growth but environment factor of external
environment is impact and affect to this trend in condition of weather changes (Chan and et.al.,
2017). For example: At the time of bad weather conditions, network issues may arise while
customers are booking rooms and other facilities of the hotel. This may result in cancellation of
online booking and payment by the clients that can negatively impact the revenue of the firm.
Food and beverage -
Food and beverage plays an important role in increasing the current level of sales and
revenue of firms that are operating their business in hospitality industry. Manager of Food and
Beverage department of Ritz Hotel should revamp the current menu of the hotel. This will help
to satisfy the need and demands of customers that belong to different types of culture. Hotel
should include organic food items, low fat products, healthy food and drinks etc.
Sustainability -
Nowadays, customers are more concerned with issues related with environment. They prefer to
buy the products and services of those firms that are behaving ethically and following all the
regulations related with environment protection. Therefore, Ritz Hotel should consider the ways
for sustainable development such as saving energy by using renewable sources, smart light bulbs
etc.
CONCLUSION
From the above study it had been concluded that the hospitality industry has highly
contributed in local, national and international economy. This has significantly increased in past
few years. There has various operational and functional department which has plays an important
role in hotel for manage human resource and customers services. Communication skills, high
satisfaction of customers and multitasker has very important skills which has need to develop in
other staff members in order to good work. It had been concluded that the political, economical,
technological, environmental, social factors has impact to business in negative and positive
manner. With the help of SWOT analysis manager get opportunities for increase growth at

marketplace. Various current trends like technology and online booking and payment. Those
current has impacted by the external environmental and technological factor in negative and
positive manner.

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