Contemporary Hospitality Industry Report: Holiday Inn's Performance

This report provides a comprehensive overview of the contemporary hospitality industry, using Holiday Inn as a case study. It begins by defining the industry and exploring various business types within it, such as lodging, food and beverage, entertainment, and travel and tourism, while also discussing their impact on the local, national, and international economies. The report then delves into the operational and functional departments of a hotel, highlighting the roles of front office, housekeeping, HR, and finance. It further examines different operational roles within the industry, including housekeeping, front desk, and marketing, along with the skills needed for each. The report also analyzes the impact of external factors using a PESTEL analysis and includes a SWOT analysis of Holiday Inn. Finally, it addresses the implications of current and potential trends in the hospitality industry, offering valuable insights into its evolution and challenges.

Contemporary Hospitality
Industry

Table of Contents
TASK 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
P1 Types of business in hospitality industry...............................................................................1
P2 Range of operational and functional department ..................................................................2
P3 Contribution of hospitality industry in local, national and international economy...............3
TASK 2............................................................................................................................................4
P4 Range of different operational roles within the hospitality industry.....................................4
P5 Skills required for different roles in hospitality industry.......................................................5
TASK 3 ...........................................................................................................................................6
P6 The impact of external factors that affect the development of organisations operating
within the hospitality industry.....................................................................................................6
P7 SWOT analysis of Holiday Inn .............................................................................................7
TASK 4............................................................................................................................................8
P8 Implication of Current and potential trend in hospitality industry........................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

TASK 1
INTRODUCTION
Hospitality industry refers to the broad category of field which are developed in order to
satisfy the needs of customers. In the following assignment, Holiday Inn is taken which was
founded in the year 1952 and is having its headquarter in Denham, UK(Wijesinghe, 2014). In the
following report will discuss about the type of business within the hospitality industry and the
range of different operational and functional department. Further this assignment will discuss
about the contribution of hospitality industry to the local, national and international economy and
will focus on different roles and skills of employees of hotel industry. In this report there is a
description regarding impact of internal and external factors on the hospitality industry. At last
the implications of current and potential trend in the hospitality industry is discussed.
P1 Types of business in hospitality industry
Hospitality industry plays a crucial role in growth of a country as it provides services
throughout the world. It is growing at the fast rate because people start travelling due to various
purposes. It is because of increased tourist, people start visiting one or more place. There are
different kind of business which are undertaken by hospitality industry and are discussed below:
Lodging accommodation: The following sector includes hotels, resorts etc who are
specialised in providing accommodation, food and other facilities to the customers. Holiday Inn
is providing their customers with best accommodation facility which results in growing
reputation of the company (Wang, 2016).
Food and Beverages: After providing of accommodation, the next thing which Holiday
Inn provides is food to its customers. Further the food and beverages is divided into some of the
categories which are explained below:
 Quick service: In this sector, quick services are provided to the customers which
includes drinks, snacks etc.
 Catering business: In this services food are provided with the help of employees on the
special occasion like wedding, parties etc.
 Full service restaurant: Here the restaurant provides full meal course to the customers
on there desired tables with the help of waiters.
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Entertainment industry: This type of services are included in the hospitality industry in
order to attract large number of customers. Various activities which are provided for adding fun
in the life of customers are mentioned below:
 Sports and Gaming: It includes swimming pool, casinos and other activities.
 Nightclubs: It includes bars, pubs where customers are able to dance and sit with their
friends and can enjoy drinks and spent their quality time.
Travel and tourism: It includes the transportation facility in the form of bus, airlines,
trains, cabs etc through which person is able to move from one place to another. This facility is
provided to the customer for different purposes which includes business tourism, educational
tourism and many more (Tsang, Lee and Qu, 2015).
Direct and indirect impact on the economy
The hospitality industry has a impact on the economy of a nation in direct or indirect
terms as it provide employment opportunities in a large scale to people all over the world.
Moreover by creating the opportunities it results in increasing the GDP and per capita income of
the nation.
The tangible and intangible nature of the hospitality industry
Tangible services are the one which can be seen and touched by the customers. This
includes interior, exterior and the environment of a hotel. Holiday Inn always try to provide
healthy and clean environment to their guest which enables them to take services of the hotel
again. Where as on the other hand intangible services are the one which can only be feel.
Holiday Inn is developed in such a way that provides complete relaxation to the customers
P2 Range of operational and functional department
Both operational and functional department are considered as one of the important
department of the hospitality industry. With the help of this department Holiday Inn is able to
achieve their goals and objectives on time. The range of operational and functional department
are explained below:
Operational department: These department which are responsible for controlling and
designing of the business operations. They are responsible for smooth functioning which helps
the Hotel for increased productivity and profitability ( Ram,2018).
 Front office: It is the first department of every hotel which is noticed by every customers
while entering. This department of Holiday inn is responsible for keeping the full details
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of visitors, check out, check in times, room availability and many more. This department
act a communicator between other department and for this training is provided to the
employees on the regular basis so that they able to resolve the conflicts between
employees or guest.
 Housekeeping: The work of this department is to look after the cleanliness of Hotel as
by doing this one can create a goo image in the minds of customers. This department get
detail of cleanliness through the front office. So the measures should be taken by Holiday
Inn in order to keep the environment clean (Ozturk, 2016).
Functional department: It involves finance department, HR department and many more
of Holiday Inn.
 HR department: This department of Holiday Inn is responsible for hiring and selection
of employees of the Hotel. For this they required to providing training and development
programmes to the employees so that they contributes to the growth of an organisation.
 Finance department: This department is responsible for managing the records of
Holiday Inn. They are the one who make balance sheet, cash flow statement and for this
they required some of the financial knowledge. The employees of this department is hired
with the help of HR department.
P3 Contribution of hospitality industry in local, national and international economy
The hospitality industry is growing at a fast pace due to increased travel and tourism
across the world (Madera and et. al., 2017). The people are travelling from one place to another
because of several reasons like educational purpose, entertainment purpose or official purpose.
This benefit a lot to the local, national and international economy. The hospitality industry
provides employment opportunities to the people all over the world. According to the data of
2017, it has employed over 2.4 million of the people. By generating job opportunities, the
hospitality industry contributes about 10% to the world GDP. Due to expansion of hospitality
industry , the local markets have developed a lot which results in increasing the per capita
income of nation and also improves the living standard of people of UK. The small outlets also
got benefit as because of the increased tourism, people start travelling and this result in benefit of
a nation. According to the British hospitality association more than 500000 employees are
working in the hospitality industry(Lopes, 2016).
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International tourist has contribute a lot towards the economy of UK. It got benefit
because the international tourist travel through the mode of airlines which increases the revenue
for travel and tourism industry. The tourist from international countries, visit the near by areas
and contribute towards the development of local economy by purchasing from local markets. By
making use of licensing agreement, they are expanding their operations internationally. Thus it
contributes a lot for the economy of a nation.
TASK 2
P4 Range of different operational roles within the hospitality industry
In an organisation there involve the role of different department which helps in the effective and
efficient working of a enterprise. There are different types of role within the hospitality industry
which are explained below:
 Role of housekeeping: The main role of housekeeping department of hotel Holiday Inn
is to keep the hotel premises clean so in order to make guest feel valued. By keeping the
surrounding, hotel is able to attract large number of customers base. This service is
available by hotel throughout the day (Kuo, Chen and Tseng, 2017). The instruction of
cleaning the room is given by the front desk department. They employees of
housekeeping department of Holiday Inn have a uniform and it is mandatory fro them to
wear and keep the environment hygienic.
 Role of front desk department: The main role of front desk manager is in
communicating with all the department of hotel and also listening to the queries of
employees and guest. They are the one who are responsible for booking of room at Hotel,
check out and check in time of guests. They keep their calm interaction with guest so that
can take feedback of where there is a need of any improvement. It is the very first
department of hotel so it is their primary duty to treat every customer properly in order to
create best impression in the minds of customers(Jones, Hillier and Comfort,2016)
 Role of marketing department: Every organisation has some of the goals and objectives
which they need to fulfil in order to attain success at market place. Holiday Inn being one
of the most successful hotel has a department of marketing which plans new strategies for
targeting large number of customers. They are responsible for promoting the product and
services of hotel with the help of social media platforms. At the time of any festive
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season company launch various offers for their customers, also special coupons were
provided to the permanent customers in order to catch their attention towards the
services. Thus this result in increasing the productivity as well as profitability of a
concern.
P5 Skills required for different roles in hospitality industry
There are so many skills and abilities required for an individual in order to work properly in
hospitality industry. Some of the skills are as follows:
 Communication skills: This type of skills are very important in an organisation as
through this goals and objective become very easy to achieve. Through communication,
queries and conflicts that arise between employees and guest get resolved. This skills are
very important among the department of front desk s as they have to communicate with
all the department of Hotel (Huang and et. al., 2016). So many customers of different
culture visit Holiday Inn hotel. In that case effective communication skills make
customers comfortable.
 Flexibility skills: This type of skills are very important among the employees of Holiday
Inn. As they need to customise their services every time with the needs and requirement
if the customers.
 Technical Skills: This skill now a lays lay emphasis upon the working of an
organisation. As by applying this type of skills in the regular work manual work can be
minimised. Moreover details of every customers can be made over the computer which
result in fast completion of the work. Now a days promotions are done by using social
media apps and for this knowledge of computers are most required.
 Management skills: With the help of this skills, employees of Holiday Inn are able to
manage their task effectively and efficiently. Managers are able to delegate the task to
other employees according to their ability(Grobelna and Marciszewska, 2016).
Coordination and cooperation along with this skills result in achieving of the goals and
objectives of an organisation.
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TASK 3
P6 The impact of external factors that affect the development of organisations operating within
the hospitality industry
In order to know about the impact of macro environmental factors on the hospitality industry ,
company uses PESTEL analysis. It is a tool which is used in order to analyse the impact of
external environment on an organisation. Below is the PESTEL analysis of Holiday Inn:
 Political factors: These are the factors which involves government intervene. The factors
include here are government policy, foreign trade policy, tax policy and many more. The
UK government is making some of the policies and strategies for the development of
hospitality industry which results in a positive impact (Chan and Hsu, 2016). Moreover
with the government encouragement, this industry is able to expand and provide
employment opportunities to the people of UK. The terrorist attacks are not under the
control of government which results in the negative impact upon Holiday Inn.
Example 2: The impact of this factor can be clearly seen on the operation of Hotel Hilton
as act of Terrorism in London in the year 2005 has reduced the number of visitors in London
and UK and has a negative impact on the performance of Hilton.
 Environmental factors: These are the factors whose main concerned is over using the
means of environment in such a way that does not impact the environment. It is very
important for the Holiday Inn to make effective use of resources so that they can b e
optimally utilised. In order to contribute towards the environment Holiday Inn must make
there surrounding green which make customers aware about the healthy benefits.
Example 2: For Hilton it is required make proper use of the resources and for this reason
only the Hilton started using renewable technology. Moreover regular involvement of
government towards the environmental agencies are adding to the cost of Hilton worldwide.
Thus they started working toward recycling of resources and minimising the wastage.
 Social factors: It includes the customs and values of the populations. Factors include
here are age distribution, income distribution, culture barrier and many more. It is the
work of manager of Holiday Inn to provide the services according to the taste and
preference of the customers and they are trying to do fulfil which results in positive
impact for the hospitality industry. Now a days customers are very quality conscious and
their focus is more towards the security. In that case such services needs lot of time as
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every time preference changes which result in switching of customers toward different
services and thus act as a negative point.
Example 2: Media outlet plays a great role in influencing the opinion of public. So it is very
important for Hotel Hilton to know about the taste and preference of customer. Thus must
provide services that enhanced the experience of customer.
 Technological factors: In includes factors like innovation, invention and many more. As
technology is developing at a fast pace and in that case company need to make change in
the operations according to the technology. With the help of technology, Holiday inn
hotel is able to increase its communication among the employees and guest. They are
able to develop website and with this large customers base can be developed. Thus has a
positive impact on the hospitality industry. Moreover the impact of technology has
negative too because due to hackers there is chance of losing the information.
Example 2: There is a high competition in technology of UK and the development of
mobile technology is successful in transforming the customer expectation in service industry.
Thus after evaluating the condition of market they started providing online booking which help
Hotel Hilton to get connected with large number of customers thus increase the productivity of
the hotel.
 Economical Factors: These re the factors that affect the economy of a nation. It includes
factors like economic growth, inflation rate, interest rate and many more. At the time of
inflation a great impact of it has seen over Holiday Inn as they have to raise the price of
various services which led the customers to shift their choice from holiday Inn to other
hotels.
Example 2: The exchange rate is bit volatile in UK and is having a impact upon both
short as well as long run in hotel Hilton. Moreover also the disposable income of people remain
stable which has a negative impact upon the consumer spending behaviour.
 Legal factors: These factors are concerned with laws and regulation. Company in order
to operate properly is required to follow the legal practices. The minimum wage rate has
been fixed by the government of UK. So Holiday Inn should look into the facts and
provide the employees with the fair wages.
Example 2: Hotel Hilton followed all the rules and regulation properly which has reduced
the intervention of government and also was successful in adding value to the image of the
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brand. Along with this laws should be properly followed with the employees and also provide
them with fair payment which enable them to build trust among the hotel.
P7 SWOT analysis of Holiday Inn
The SWOT analysis is done in order to know about the internal capabilities and external
threat and opportunities. strength and weakness are internal to an organisation which can be
controlled. on the other hand threat and opportunities are external to the environment which
cannot be changed but can be controlled to some extent. below is the swot analysis of Holiday
Inn:
Strength:
 Strong brand image: Holiday Inn has established its good image throughout the world
because of its effective promotional techniques.
 Global presence: Holiday Inn has highest global presence all over the world as it has
near about 1200 hotel across the world.
Weaknesses:
 Competitors: Increasing number of competitor in the industry is considered as one of the
biggest weakness.
 The company is trying to increase the penetration in the emerging economies.
Opportunities:
 New place: Holiday Inn has the opportunity to diversify its hotel to other new places that
could increase the customers base and also the income source.
 Seasonal offers: In order to increase the sale of Holiday Inn, the hotel must provide some
of the seasonal offers and discount to their customers.
Threat:
 Cost of Operation: The rates of hotel are increasing at fast rate because of the increasing
cost of operation of the
 Decline in tourist: Many of the tourists declined to visit at the premises of Holiday Inn
because of the increase in natural disasters, terrorist activities etc.
Thus with the help of SWOT analysis, holiday Inn is able to identify both internal or external
capabilities and thus will hep them to formulate the strategies that help in profit maximisation.
SWOT Analysis of Hotel Hilton
Strength:
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Brand recognition: Hotel Hilton is renowned brand and known by every people because of their
presence in so many countries across the globe.
Customer satisfaction: Due to the use of updated technologies company is able to develop a
dedicated relationship with the customers and thus result in their satisfaction.
Weaknesses:
Lack of product range: The services provided by Hotel Hilton has hap in the product range and
due to this customers have lack of choice.
Low market share: Hotel Hilton is havig a low market share in spite of their large portfolio of
brand as they are totally depended upon the US market.
Opportunities:
Procurement of neighbourhood hotel: Hotel Hilton can acquire a local hotel and small chain of
hotel near by the neighbourhood which will help them to eradicate the local competition.
Digitalisation and new technology: The Hotel has invested a large amount of fund in online
channel and it investment has opened up the new channel of sales.
Threat:
Threat of new entrants: Hotel Hilton is facing a high threat in the terms of competition as so
many new hotel are emerging at a great pace.
Currency fluctuation: As Hotel Hilton is having its operation in so many countries and due this
they are exposed to the currency fluctuation which has a impact upon the operation all across the
world.
Thus with the help of SWOT analysis Hotel Hilton is able to analyse both current and
emerging trend of market place which help them to take better strategic decision.
Factors influencing supply and demand of Holiday Inn
As per the current performance of Holiday Inn it can be know that due to the global
presence they are able to serve large number of customers throughout the world. Moreover due
to terriorist attack there lies a decline in the number of tourist.
Factors influencing supply and demand of Hotel Hilton.
According to the performance of Hilton Holiday at the present time it is stated that with
the help of market recognition, The hotel is very effective in expanding their market size. As in
the hospitality sector their lies so many competitor which sometimes led to the drawback and
also lack in using of updated technology.
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TASK 4
P8 Implication of Current and potential trend in hospitality industry
Hospitality industry is growing at a very fast rate and with the growth there is a
requirement to change in the trend of the working. Below mention are the current trend used by
Hotel Holiday Inn and some of the potential trend on which it is required to work.
Current trend:
 Due to the impact of globalisation the hospitality industry has developed a various ways
through which people are able to travel from one place to another.
 The safety and security system have developed to a great extent in the hotels after the
activities of terrorists(Ali, Amin and Cobanoglu, 2016).
Future trends:
 Holiday Inn hotel can make use of technology advancement and with this they can launch
a system of fingerprint entry at the time of check in and check outs.
 With the helps of social media platforms Holiday inn can promote their services and also
can take feedback of the customers which have visited their premises by doing so they
can know about the area where requirement is required.
CONCLUSION
From the above study it can be concluded that hospitality industry contribute a lot to the
growth and development of a country. There are different type of business in hospitality sector
which provides efficient services to the customers and with the help of organisational and
functional department Holiday Inn is able to to perform the organisational goals. Moreover
hospitality industry contributes a lot in the local, national and also on the overall economy of the
world. With the help of PESTEL and SWOT analysis, Hotels are able to know about the impact
of external and internal factors on their business. Further by focusing on current trends and future
trends company is able to develop the company and also it provides competitive advantage.
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