Nelson College London: Hospitality Industry Analysis Report

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on its structure, operations, and the external factors influencing its development. The report includes a case study of Marriott International, examining its strategic plans for expansion, particularly in Asian markets, and the impact of franchising and licensing agreements. It explores various aspects of the industry, such as the different types of businesses, operational departments, and their interrelations. The report also delves into the economic contributions of the hospitality sector, both locally and internationally, as well as the operational roles and required skills within the industry, highlighting current skill shortages and their impact on companies. Furthermore, it utilizes PESTEL and SWOT analyses to assess the external and internal factors affecting businesses, including political, economic, social, technological, environmental, and legal considerations. Finally, the report discusses the implications of current trends and the ability of businesses to adapt, providing a well-rounded view of the challenges and opportunities within the modern hospitality landscape.

About the Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................4
LO1..................................................................................................................................................4
Types of business within Hospitality industry and offered services and product by them........4
Functions and operational department within Hospitality businesses.......................................4
Hospitality contribution to economy (Local, national and international)....................................4
LO2..................................................................................................................................................5
Interrelation between operational and functional department of the company..........................5
Influence of franchising and Licensing agreements in the global department of the Hospitality
industry........................................................................................................................................5
Global growth, franchising and licensing contribution in economic worth of the Hospitality
industry........................................................................................................................................5
Operational roles within hospitality industry.............................................................................5
Skills required for the roles in Hospitality industry and explanation current shortage of skills
.....................................................................................................................................................6
Skills gaps in relation of different operational roles................................................................6
Impact on the companies within the hospitality industry and solutions to address this issue.. .6
LO3..................................................................................................................................................6
External factors in environment which can affect the business.................................................6
Impact of external factors on the development of company......................................................9
LO4..................................................................................................................................................9
Implication of current trends in company to achieve success...................................................9
Ability of the business to develop their product to meet current trends...................................10
Impact of external factors on the currents trends and the development of hospitality industry.
...................................................................................................................................................10
CONCLSUION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality is the industry which include Hotels, events , restaurants and other tourism
related services. Hospitality industry of the UK has huge contribution to grow their econmomy.
This report will cover case study of Marriott international hotels which is one of the top
hotel in the UK Hospitality industry, and they are planning to Expand their business in the Asian
countries, and also they will look for the new investors. In the first section this report will
explain the industry and the trends information and the other will cover the companies
environment and their capabilities.
LO1
Types of business within Hospitality industry and offered services and product by them
There are various types of business within the Hospitality industry and business within
this industry provide services like accommodation (Experiences of mentoring in the UK
hospitality sector, 2018). Accommodation services are provided by the hotels, Food and
beverage business which also cover the restaurants, bars cafe etc. The travel and tourism and
entertainment which are also a part of the Hospitality industry (Boella and Goss-Turner., 2019).
They are connected with each other, and they are also a part of this industry and make this
industry successful and powerful. Products are also similar but their services can be different.
Which show differences in the business.
Functions and operational department within Hospitality businesses
In the Hotels employees who run the operational and function department have different
role within the company where companies manager have to control the activities of the
employees and provide them right guidance and path to provide the best hostility services to
their guest. For examples- Staff members of the company provide services to the guest and
some other department like Housekeeping has to clean and prepare the room and the front desk
manager have to communicate with the guest for the accommodation. (Dogru, McGinley, Line
and Szende., 2019). One more department which is Food and beverage department where Cook
prepares the food and serve to their customers.
Hospitality contribution to economy (Local, national and international)
Hospitality Has huge contribution toward the local, national and the international level.
Small business within this industry pay the taxes to the state government and the national level
business who have business within the country in the different different places pay the taxes to

the government which are used to improve the countries infrastructure and This is directly
contribution to the economy. The business within this industry are working on the international
level also have huge contribution economy because they bringing currency from other country
which increase their own courtiers value (Money)
LO2
Interrelation between operational and functional department of the company
Operational implies the concept of a number of systems functioning together. An
operational heck may be conducted on the ground or in the air (Dzhandzhugazova And et.al.,
2016). Functional check, Functional, on the other hand, implies that it applies to an individual
system or element within a larger entity. They both are interrelated to each other because they
both are support for each to create outcome of the company and company can be successful.
Influence of franchising and Licensing agreements in the global department of the Hospitality
industry
Franchising and the Licensing agreements allowed the Business to run their operations
on the global level. Companies get the permission to operate their business in the other countries.
Companies, who franchise their business give some of their rights to open business to the other
businessman with the same name and functional and operation, but franchise have to share the
profit which is decided in the Franchise agreements. Licensing agreement is used to run business
on the international level.
Global growth, franchising and licensing contribution in economic worth of the Hospitality
industry.
Global growth, franchising and the licensing has huge contribution in a growth of
Hospitality industry because Companies within UK Hospitality industry can take entry in
international market and increase their revenue. More revenue generation means more growth
for the Hospitality industry (Jones, Hillier and Comfort., 2016). For example- By using the
franchising and licensing Hotel Marriott can enter the other countries, and they can bring
money from other countries to their home country which will make their own currency strong.
Operational roles within hospitality industry
There are some Job titles within the hospitality industry which are common within the
industry and the event partners who organize the events for the business within this industry.
Hotel general manager who manage the functions within the company and train the employees.

Housekeeping who clear and arrange the room before guest reach to the hotel. Waiter who
services the food to the customers
Skills required for the roles in Hospitality industry and explanation current shortage of skills
Most of these positions require excellent customer service skills, attention to detail,
teamwork, and good personal grooming (Pham, Tučková and Jabbour., 2019). Creative problem-
solving (because travelers sometimes have unexpected problems) and a thorough knowledge of
local resources and attractions are important as well.
Currently shortage of the skills are affecting the Hospitality industry because people
need skill based training and the talent which can help the business to achieve the success in
their business. This problems need top be address.
Skills gaps in relation of different operational roles
Different roles in the Hotels like managers post where they have to communicate with the
guest and create their good impression, But now this skill is very rare in the managers. Staff
members within the hotels like to work individually, and they do interact directly to the
employees, which create the communication gap between them, and they are not able to
understand each other (Rhou and Singal., 2020). Example- In the restaurants guest need the
fast services but lack of training within the waiters they are not able to provide the fast
services.
Impact on the companies within the hospitality industry and solutions to address this issue.
Most of the companies within the Hospitality industry of the UK have unskilled workers
because they do not provide skill based training to the employees. This creates skill gap within
the industry, It is important for the manager and leaders of the company to provide skill based
training rather than regular training. Skill based training will help to cover the gap between this
industry if every organization follow the same procedure.
LO3
External factors in environment which can affect the business
There are some external factors within business environment that can affect the Business
of the Marriott international and their plan to expand their business in the Asian country. this
factor can become barrier for them if the companies superiors will not be aware about them.
This can be easily analyzed by using the PESTEL analysis of the Asian countries.
Pestle Analysis

Political factors
Political factors like Tax structure and the governmental polices are different in the Asian
countries which can affect the business of the Marriott international. Some polices like Hygiene
and shifty of their customers have different laws which should be followed by the Marriott
international if they want to expand their business In Asian countries, and also they have to pay
taxes according to the rules within Asia countries.
Economical factors
Most of the countries in Asia are still developing and this can be good opportunity of the
Marriott international to expand their business over there. The labor rates in those countries are
cheaper as compare to the other countries and employee will be ready to work for the company
in less salaries. They can invest their money in the training and development of the employees
which can helps them to achieve success in the Asian market, and they can show their presence
in those countries.
Social factors
People in the Asian countries are very straightforward toward their culture, and they
speak varieties of the languages, so Marriott international should analyze the need and demand
of the people within this market. They can add some value for the customers by providing
their local food facility, and they can also recruit local people from the Asian countries, so
they will conferrable communicating with their own people.
Technological
Technology has huge impact on Marriott international and it is helping them to take the
competitive advantages it can be more beneficial if they will use the new technology trends,
and they can bring the new technology in their workplace, so they will able to gain competitive
advantages.
Environmental
This is most important factor within the business environment and Marriott international
should give their contribution toward the environment. They can plant trees nearby their Hotels
which will help them to create good image among the people.
Legal Factor
Legal polices like Labor lows has huge impact on the business of the Marriott
international and the Asian countries have different labor laws which company have to follow

and provide the rights to their employees as per the Labor laws. internal factors to understand
the companies strength and weakness and this can be helpful in decision-making
SWOT Analysis
SWOT Analysis can be used for the decision-making process where the superiors of the
Marriott international can find out their strength and weakness. This will helps them to make
the new strategies and Marriott international can easily expand their business in the Asian
country
SWOT Analysis of the Marriott international
Strength
 Marriott international is highly success in the Go to market strategies for their product,
so they can use this strategy to expand their business in the Asia market as well.
 Support performance in the new market by Marriott international, It is helping them to
creates good image within hospitality industry. Having strong market reputation, developed by their quality services which helps them
to satisfy their guest
Weakness
 Financial planning is not done properly and efficiently. The current asset ratio and liquid
asset ratios suggest that the company can use the cash more efficiently than what it is
doing at present. This can create the barrier for the company take entry in the new
market so finance manager of the company have to ensure the use of financial resources
within the company.
 Need investment in the technology because they are using the old technology.
 Customers are facing problem in the online booking, company need to improve their
online side so customers can book their accommodation.
Opportunities
 Expansion of the business in the Asian country will create opportunity for the Marriott
international to take competitive advantages.
 Innovation is the technology can enable them to take competitive advantages, so they
should follow the new technology trend withing the industry which will also enable
their entry in the Asian market.
Threat

 Competitors within the industry where Marriott international is working is very high
which is creating the pressure on the company and business are braining new
technology and innovation to steal the market shares
 Not highly successful at integrating firms with different work culture. As mentioned
earlier even though Marriott International is successful at integrating small companies it
has its share of failure to merge firms that have different work culture.
Impact of external factors on the development of company
External factors can create the opportunity of the Marriott International and make them
successful if they are aware about the factors. Marriott International can successful to enter in the
new market of their leaders and managers analyze the external factors. Technology factors
which has huge impact on the development of the company. It is necessary for the Marriott
International to look for the new technology trends within the industry, so they can implement
new technology at their workplace and take the comparative advantages.
Social factor which are also a part of the external factors where Marriott International
can develop their business For example- adding some value of the customers like providing
them affordable price accommodation facilities. Political factors like policy changes affect the
product and service prices of the Marriott International this can be both positive and negative
impact on the business of the Marriott International. Just like that economic factors like
decrease in the Tax rates are the advantages o for the company because they can take loans in
less interest rates which can allow them to invest capital in their business and company can
more expand their business in the new market and develop their resources.
LO4
Implication of current trends in company to achieve success
There are many new trends within hospitality industry which can be helpful for the
Marriott International to take comparative advantages, and they can successful enter the Asian
market. Here trends in the Hospitality industry -
Teach explosion
The majority of the guest in this industry are the self-sufficient, tech savvy travelers
who are conferrable using the mobiles and the websites. Marriott International should make
sure that their offering for customers are up TO date and it should be user-friendly At the
companies meeting and the conferences, travelers expect for the hotels and conference center

to have the high quality tech equipment and knowledgeable to support staff. Marriott
International can add the conference hall for the guest, so they can held the meetings if it is
necessary.
Influx of International Visors
International leisure travel is on the rise—Dubai International Airport has become the
busiest airport in the world (New trends in Hospitality Industry and Georgia, 2016). Hotels
must be able to provide services in a multitude of languages, and tailored experiences properly
suited to the culture and unique needs of their international visitors.
Ability of the business to develop their product to meet current trends
To meet the trends currents trends within the hospitality industry, Marriott International,
can implement the technology at their workplace and also provide the website every different
hotels for make the easy every for their customers. New technology will help them, to provide
the better facility to their guest. It will also make their experience better with the Marriott
International.
Marriott International is working on the international level, and they are one of the top
Hotel in this industry, and they are having good reputation in the Hospitality industry. This is
because their product and their services are stratifying the needs and the demand of the
customers. This shows that company have the ability to develop their product and services to
meet the current trends in the Hospitality Industry.
Marriott International is continuous expanding their business in the new markets, and
they are successful with the proper strategy of the business expansion, and they used to
training there employees and their main reason for the success is that they recruit the
employees from the local area of the country, so they can help to provide services which can
satisfy the needs and demand of the customers in the particular company and able to show their
presence.
Impact of external factors on the currents trends and the development of hospitality industry.
External factors have he impact on the current trends like political factors – government
make the fiscal and control the Monetary polices of the central bank where they control the
interest rates so the Marriott International can take the advantages and develop their business
because they will get the loan in lower interest.

Supply and demand in the economy is also affect the trends which is beneficial, for the
Marriott International. When demand of the product increase s in the economy then customer
started saving the money but when it increases customers spend more which affect the
Marriott International business.
CONCLSUION
As per the report has been cover the industry where Marriott International Hotel is
operating their business. It has been analyzed the industry product and their services , this
industry's contribution to the economy etc. The other part has been covered in the Presentation
file where it has been explained the factors which affect the business and create opportunity
and threat for the Marriott International in Expansion in the Asia and it has been discus about
the new trends and companies ability to develop their product according to the trends.

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