Detailed Analysis of the Contemporary Hospitality Industry Report

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on various facets of the sector. It begins with an introduction to the hospitality industry and its significance, followed by an examination of different business types, operational departments, and their contributions to local, national, and international economies. The report delves into the range of operational roles within the industry, highlighting the required skills and addressing current skill shortages. Furthermore, it assesses the political, economic, social, technological, legislative, and environmental (PESTLE) factors affecting organizations, along with a SWOT analysis of Four Seasons. Finally, the report explores current and potential trends in the hospitality industry, concluding with a summary of key findings and a list of references.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1 ...........................................................................................................................................4
P1 Different types of business within hospitality industry and diverse products and services
they offer................................................................................................................................4
P2 Range of operational and functional departments ............................................................5
P3 Contribution of the hospitality industry to local, national and international economies. 7
TASK 2 ...........................................................................................................................................8
P4 Range of different operational roles within the hospitality industry.................................8
P5. Skills required for the different roles in a hospitality industry and shortage of current
skills........................................................................................................................................9
TASK 3 .........................................................................................................................................10
P6 Assess the political,economic, social,technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry. .....10
P7 SWOT analysis of Four Seasons . ..................................................................................11
TASK 4 .........................................................................................................................................13
P8 Current and potential trends in the hospitality industry..................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
The successful and flourishing industries of the world includes hospitality industry. The
hospitality industry is very wide term which focus on providing ample number of services to
customers and emphasis on their satisfaction and create specific experiences for them so it is also
referred to as service based industry. This industry is much wider when compared to other

industries as it consist of many type of businesses. Also, it contributes a very large portion to
GDP of world and create employment opportunities (Dogru, T., and et. al., 2019). This report is
related to Four Seasons hotels Limited which is international luxury hospitality company situated
in Toronto, Ontario. This hotel has its operations in more than 100 hotels worldwide. This
present report explains about various types of business and range of operational, functional
departments. It also discusses about current and anticipated skills of hospitality industry. Also,
includes PESTLE and SWOT analysis that put impact on this industry. Lastly, this report shows
analysis of current, potential trends and developments which affect this industry.
TASK 1
P1 Different types of business within hospitality industry and diverse products and services they
offer
Hospitality industry is considered as fastest growing industry which emphasises on providing
quality services to their customers. This industry has diverse businesses and highest level of
customer expectancy which contributes towards growth and development. In UK there is
increase in GDP as it get maximum proportion from UK tourism. Therefore, classification of
hospitality industry in UK is as follows:-
Hotels/accommodation: This hospitality industry is growth oriented which focuses on
providing accommodation services to its customers in return of consideration in monetary terms.
In this consideration or price is charged on basis of services being rendered to customers such as
food services, entertainment facilities, room services and many other complimentary services
(Dzhandzhugazova, E. A., and. et. al., 2016). Hotels are focused towards serving customers with
respect to prices being decided with customers. Hospitality sector is mainly focused on providing
food, excursion, accommodation facilities at prices which are being expected by different class
of customers.
Restaurant/cafes: The organisations are specialised in providing food facilities, dine-in,
along with complimentary drinks and food to their guest at prices being fixed according to
industry standards. In these types of industries customer's must be treated with modesty and

should be served with effective services to maintain their satisfaction. The different products and
services being offered by restaurants includes dinning facilities, food and beverages services,
cafes for long term purpose. Customer's are charged in monetary terms for what they are being
served as per their choices and expectations (Goh, E. and Jie, F., 2019).
Pub, bars & nightclub: This is fastest growing sector in hospitality industry in which
unique and attractive services are being provided to customers. Various services consist of dance
parties, stage shows, alcohol, and many more. In these types of facilities consideration being
charged in monetary terms is high as compared to other facilities. In this main focus is on
providing entertainment to its customer's. These facilities help people get relaxing and refreshing
time.
P2 Range of operational and functional departments
One of the essential and important department in hospitality industry is operational and
functional department. These departments helps in making evaluation for services being
provided to customers which are directly or indirectly important from customer's point of view.
The Four Seasons Hotel consist of six functional and operational departments. Further these are
classified as front house and back house operation departments (Jones, P., and et. al., 2016).
In front house operation department, the Four Seasons Hotel will have to deal with
maximum interaction and communication with customers. This department includes division of
rooms where emphasis is given on front office, reservations, housekeeping department etc. The
another major head in functional department is concerned with marketing and sales department
which is inclusive of services such as group sales, catering sales, group sales, etc. Also, food and
beverage department comes under functional department which consist of room services,
conference rooms, banquets, restaurants, lounges and many other services.
In back house operation departments, the Four Seasons deals with different heads like
human resource management, engineering and accounting. The human resource management
functional head mainly emphasis on hiring perspective and proper candidate for the benefit of the
organisation. This facilitates in ensuring that the work which is to be performed by company
will be performed by the right people. The HR department will also work effectively on ensuring

proper security and safety of their employees and customers at the hotel (Kandampully, J., and
et. al., 2015). They implements and executes various laws which assures that food which is to
be served by the hotel is free from contamination and is hygienic and healthy to eat. The
engineering department is concerned with maintaining the infrastructure of the hotel and
ensuring that all the equipments which are involved in the hotel works effectively and efficiently.
It also concentrate on grounds keeping, and capital improvements. Lastly, the accounting
department focuses on ensuring credit facilities and determining that industry is generating good
and high returns on investment.
Illustration 1: Functions And Divisions.2019
P3 Contribution of the hospitality industry to local, national and international economies
Due to increasing number of tourisms and travellers, the hospitality industry is growing at
a tremendous rate. This brings various benefits to the local, national and international economies
of the country. The tourism industry contributes towards the growth of the country, GDP and its
economy. It generally relates to travelling to a place other than their homecountry for the purpose

of leisure, exploration, vacation, businesses, etc. This generates demands for various products
and services (Kim, M., and et. al., 2015).
The UK hospitality industry is very immense and it has generated the ample number of
job and employment opportunities for the local people. It has employed around 2.4 million
people as per the 2017 data and 1.2 million in around 170,000 commercial set up. Thus, it is fifth
largest industry in UK which is employing the maximum number of people. This industry has
generated the revenue of £90billion which contributes in GDP and national income of the
company in around £34billion. Apart from this, VAT rate from the restaurants has also created
the 53900 jobs in the country (Economic Contribution of UK hospitality industry, 2019 ).
The hospitality industry has a strong contribution in UK economy as due to generation of
employment opportunities, the vast number of people are employed and contributes in per capita
income (GDP) of the country. This will help in raising standard of living of the people in the
country. Due to the hospitality industry, the business of various sectors like sight seeing,
shopping, travels, etc. is immensely increasing which is contributing in overall growth and
development of the country.
Similarly, the international tourist also provides strong contribution in UK economy,
because they travel by air which increases the revenue for the airways and travel and tourism
industry. Then being from the international countries, they will also do shopping which will
contribute in the development and growth of the local economy. Furthermore, the franchising
and licensing has a immense contribution in developing global hospitality brands in UK. Thus,
they will generate higher level of tax for the country and improves the overall economic
condition of the UK.

Illustration 2: Economic Contribution of hospitality industry.2019
TASK 2
P4 Range of different operational roles within the hospitality industry
Being the huge industry and also it generates many job opportunities, there are different range of
operational roles within the hospitality industry. These roles are basically important so as to
understand and frame various strategies so that customers are highly satisfied The following are
the different operational roles in Four Seasons:
 Housekeeping: The main work of housekeeping department in Four Seasons is to keep
the premises and surroundings neat and tidy so that customers feel comfortable and
hygiene is also being maintained (Lopes, M., 2016). It is part of operational department
which main function is to maintain comfortable environment and focuses on keeping
rooms neat and tidy. This facility is available 24*7 for customers so that they never get
dissatisfied as this lays down major contribution towards goodwill the company. This
comprises of neat and clean room and staff members.
 Marketing and sales: Every organisation exist for the accomplishment of business
goals and objectives by satisfying customer needs and requirements. No organisation
can sustain for long term without effective marketing and sales (Melissen, F. and Sauer,

L., 2019). Thus, manager of marketing department of Four Seasons promotes its various
products and services so that customer is fully aware of what is prevailing in the market.
It serves products for customers so this department has a strong focus on building
relations with the customers. Thus, this department will use various promotional tools
such as social media, advertisement, public relations in order to make people convey
about the new offerings and also offers discounts and moreover this will help in
increasing turnover with increase in sales for company which will have a direct
contribution in generation of revenues.
 Front desk services: This department of Four Seasons is involved in communicating
with customers. In this, the manager or other representative person is also accountable
and responsible for making and holding the bookings. They work effectively to resolve
the queries of their customers by proper and consistent interaction with them. It is also
the primary duty of this department to create a good and long lasting impression on the
mind of customers as this further helps in increasing business and developing reputation
in minds of customer's (Penela, D., and et. al., 2019).
P5. Skills required for the different roles in a hospitality industry and shortage of current skills.
Hospitality industry is spread worldwide so their customers are from distinct cultures,
countries and they all visit with different purpose and objective. This industry requires various
skills to perform different roles so, various skills required at Four Seasons Hotel are described
below:-
 Language skills: customers visit UK from different places, destinations and countries so,
the staff and employees of Four Seasons must have knowledge about different languages
so that they can easily communicate and understand needs and requirements of
customer's. In Today's competitive scenario this skill is very much important (Porcu, L.,
and et. al., 2019). Communication skills: As hospitality industry is prevailing across the globe so another
important skill which is must is communication as without this it would be very difficult
to accomplish business objectives and goals. Therefore, employees and managers must
have strong communication skills as this will further help in solving and managing
queries of customer's. Also, they should be calm, patient and good listener.

 Management skills: these skills majorly focuses on management of customer's
effectively and efficiently. It consist of managing queries of customer's related to check-
in and check-out. Front office and room service department of this industry should
possess skills which will help in ensuring and managing room services, resolving queries
of customer's and rendering services as per customer's expectations and needs
(Radojevic, T., and et. al., 2015).
Further, hospitality industry is suffering from shortage of skills like knowledge about
latest technological advancements, innovative skills and the influencing skills etc. The shortage
is their because there is rapid change in hospitality industry in technology and innovation
aspects. Their is requirement for continuous innovation in product line to have the ability to
compete at marketplace but lack of technological skills can create burden and decrease their
efficiency (Roma, P., and et. al., 2019).
TASK 3
P6 Assess the political,economic, social,technological, legislative and environmental factors that
affect the development of organisations operating within the hospitality industry.
 Political Factors- These factors lay down direct and huge impact on hospitality industry.
It plays major role in economics development of country. Government act as backbone
for this industry and help to sustain in this competitive scenario. Any step taken by
government whether changes in taxes or government regimes inevitably affects
hospitality industry. With respect to Four Seasons Hotel due to lower taxation policies
they have reaped high profits and have the ability to invest in research and development.
 Economic Factors- These factors include factors such as Taxation policies, interest rates,
exchange rates, inflation and economic growth. Hospitality industry is affected mainly by
conditions of global economy as these affect demand and purchasing power of tourists.
Frequent changes in exchange rates affect investment plans of industries for both long
and short term. If there is deflation in economy than hotels and airlines industries have to
reduces prices to maintain their business this results in decreased profits and reverse
situation arises when there is inflation in economy. In context of Four Seasons the

increase in liberalization in trade policies allow Four Seasons to invest further and
expand their business.
 Social Factors- The social factors as compared to other factors also helps in making
hospitality industry flourishing. Various social factors are culture, tradition,
demographics, attitudes, norms, roles, media activity and acceptance. If there are changes
in social factors than this will put negative impact on demand for products and services
offered by industry. For example Four Seasons can adopt various media platforms for
building network for conducting their business (Segovia-Pérez, M., and et. al., 2019).
 Technological Factors- Their are frequent and disruptive changes in technology and
operations. These factors helps in influencing customers as it facilitates communication
and fills gap by transferring information in world. Technology also assist customers to
have complete information and avail best deals and offers. These factors helps both
tourist and hotel as this helps in enhancing services by reducing work load. With
reference to Four Seasons they are making innovations by adopting latest technology as
this will further help in capturing huge market share.
 Legislative Factors- These factors are very much important for growth of hospitality
industry but also very complex and rigid. Public and labour laws are considered to be
important topics as these lay down major impact on hospitality industry. Their are many
legal challenges and pressures which are prevailing in tourism industry. Also, customers
are aware about local laws so companies emphasises more on preventing themselves
from legal issues (Su, N. and Reynolds, D., 2019).
 Environmental Factors- These factors are related to environment, weather and climatic
conditions as they put direct impact on hospitality industries. Most of factors which are
affecting business of hotel industries comprises of earthquake, flood, storms or any other
natural calamity. With reference to Four Seasons is now focusing on designing products
as per environmental standards and norms which results into innovation in products and
services which in turn helps in attracting more tourists.
P7 SWOT analysis of Four Seasons .
STRENGTH WEAKNESS

 Four seasons carry out its operations in
more than 100 hotels across the world.
Due to wide scope the company gets
advantage of economies of scale which
helps in developing potential for
growth of business in future.
 Four seasons offers best loyalty
schemes for customers. Company
provides various benefits such as digital
check-in, free Wi-Fi access, discount,
and many more.
 The major strength associated with
Four Seasons is their strong and
effective leadership style which is
being followed by managers and
leaders of Four Seasons (Teng, H. Y.,
2019).
 Four seasons have achieve great
heights of success by adopting latest
technologies for rendering services.
This is inclusive of digital hotel room
keys which is connected with
customers smartphones and allowing
customers with seamless experiences
while selecting rooms as per their
expectations. Four Seasons enjoys first
mover advantage in hospitality
industry.
 Four seasons have limited market share
due to inefficiencies in their
management structure but still enjoys
good brand recognition.
 Their is huge operating cost as
compared to other hotels as Four
seasons has big staff at global level.
 Four seasons is not much diversified as
compared to other hotels in luxury
segment.
 The four season have over leveraged
financial position as hotel have
borrowed too much of money but don't
have ability to pay back that borrowed
amount.
OPPORTUNITIES
 Four seasons has the opportunity to tie
up with international airways which
THREAT
 The major threat to Four Seasons hotel
and resorts in huge and cut throat