Contemporary Hospitality Industry: Business Development Report

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on various aspects of the sector. It begins with an introduction to the industry, highlighting its diverse segments such as lodging, food and beverage, and travel and tourism, with a specific focus on Easy Hotel. The report then explores different types of businesses within the hospitality industry and the products and services they offer, followed by an examination of operational and functional departments within Easy Hotel, including food production, housekeeping, and front office. The contribution of the hospitality industry to local, national, and international economies is discussed, emphasizing its impact on infrastructure development and employment generation. Furthermore, the report investigates various operational roles within the hospitality industry, assesses the political, economic, social, technological, legislative, and environmental factors influencing the industry, and conducts a SWOT analysis for a hospitality business. Finally, the report appraises the implications of current and potential trends in the hospitality industry, offering specific examples and concluding with a summary of key findings and insights.

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Explore the different types of business within the hospitality industry and the diverse products
and services they offer............................................................................................................3
Examine a range of operational and functional departments within a chosen hospitality
business...................................................................................................................................5
Discuss the contribution of the hospitality industry to local, national and international
economies...............................................................................................................................8
Task2..............................................................................................................................................10
Investigate a range of different operational roles within hospitality industry......................10
Examine the skills required for roles within the hospitality industry and skills shortage....11
Task 3.............................................................................................................................................15
Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry.......15
Undertake a SWOT analysis for a hospitality business and review how this can inform the
decision making process.......................................................................................................16
Task 4.............................................................................................................................................18
Appraise the implication of current and potential trends in the hospitality industry providing a
range of specific examples...................................................................................................18
CONSLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Hospitality industry contribute majorly towards the economies of distinct nation through
their revenue generation. Travel and Tourism sector is largely composed of hospitality industry
which is further bifurcated into distinct segments such as lodging, food and beverages, events,
theme parks, event planning, and transportation. Unique speciality of hospitality industry is that
it offers and products and services to customer simultaneously. These services can be delivered
through hotels, motels, resorts, restaurants, flights, cruise and ships, entertainment parks etc
(Song and et. al., 2018). The products and services designed and delivered by hospitality industry
is for the recreational purpose and to support the well-being the clients. Easy hotel is an
international hotel chain, founded in the year 2004, headquartered at London, England. Easy
Hotel currently operates at 40 locations across the world, majorly in Europe Continent. The
report covers various aspects such as current structure, size and scope of hospitality industry,
contemporary skills required in the sector, examination of internal and external factor which
affect the performance and considering current and potential trends affecting hospitality industry.
Task 1
Explore the different types of business within the hospitality industry and the diverse products
and services they offer
There are numerous types of business within hospitality sector catering to the needs and
wants of the customer in a warm and amicable manner. The sector is majorly composed of fives
businesses such as: Lodging and Accommodation: Business units who are in the lodging and
accommodation sector are providing a space for guest to spend a night or day as per the
purpose of their stay. People travel for business, medical, education, leisure and religious
purpose for which they look for place to stay. Hotel, motels, resorts, youth hostel, home
and community stay, flotels, are the few examples of lodging and accommodation.
Services offered by lodging and accommodation department at Easy Hotel are: Bed and
breakfast, catering services, concierge services, dry cleaning, doctor on call, laundry,
ironing and valet services, room service (24 hours), ticket and transfer services etc. Restaurant and managed services: Another significant segment under hospitality
industry is the food and beverage industry which look after the food services to the

people travelling from one destination to another (Cha, 2020). Products and services
offered in this sector vary from cheap to expensive, small to large and casual to fine
dining. There are distinct type of business are quick service restaurants, full service
restaurants, catering business and welfare such as religious congregations, destitute
homes etc. Travel and Tourism: This segment of hospitality industry looks after the issue of
travelling from one destination to another. People use distinct ways to commute from one
place to another through means of trains, cars, airlines, cruise and ships. Therefore, travel
and tourism is considered as the backbone of hospitality industry (MacKenzie and
Gannon, 2019). Assembly and Event management: MICE is regarded as the significant part of hospitality
industry which is a mnemonic of Meetings, Incentives, Conferences and Exhibitions.
This is a broader type of tourism which cater to the immense group at the same time and
are usually pre-planned with regards to meal plans, lodging, meeting details, place, date
and time.
 Recreation: People travel from one place to another most commonly to get a change
from daily busy routines. Lacking an entertainment from the vacation can be result in
boredom and time may not be utilised to the fullest. These activities are designed to relax
mind and body of a people and broadly referred to as a Entertainment industry. Few of
the activities such as sports and gaming, movies, dance shows, singing concerts,
attractions and live shows majorly contribute as a recreational activities.
Hospitality Products: Few of hospitality products are rooms, amenities, food, banks, hospitals,
conference halls, open spaces, modes of transportation, theatre and clubs, amusement parks etc.
Hospitality Services: Hospitality services offered in the sector are grooming, presentation,
behaviour, service style, courtesy, assistance, online facilities, valet, butler and customer delight.
Nature and characteristics of hospitality services
 Intangibility: Unlike products hospitality services are intangible in nature that is it can-
not be touched, felt and smelt before the actual purchase. Stay at hotel or food in
restaurant can be checked and judged on quality unless paid, therefore it is highly risky
because quality is determined only after consumption.

 Perishability: Unlike manufacturing units, hospitality industry can-not store its products
or services in advance. Availability of rooms and seats in restaurant totally depends on
each day or night. For instance in a peak season hotels rooms have low availability
whereas in low season periods hotels needs to offer some attractive package to attract
customers.
 Inseparability: In order to consume a services a role of customer is essential as their
presence at the consumption determine the experience. Frequent Production and
consumption of services totally depends of the quality of services offered by the staff
personnel of hospitality industry. Direct interaction of the staff with the guests or other
guests will have a direct impact over their satisfaction level, therefore hotels must take
care this aspect wisely.
Examine a range of operational and functional departments within a chosen hospitality business
Alike other businesses sector, Hospitality industry too have operational and functional
department which ensures smooth functioning of different businesses in hospitality industry
(Diffley, McCole and Carvajal-Trujillo, 2018). There are different functions of each department
which is mentioned below:
Operation Department of Easy Hotel Group Food Production Department : Kitchen or food production department of Easy Hotel
carry out the preparation of food and food items in a hygiene, safe and healthy place
which ensures that the quality of food meet the desired expectations as per the demands
of customer. Chef, Cook, Sous Chef, Kitchen manager and porter are the few job roles
which looks the entire Kitchen department.

Generally services offered by the food and production department in the Easy hotels are:
 Restaurants: In house restaurants at hotels are designed for the purpose of consumption
of food for the guests. The operations are lot limited to the food but also cover many
aspects such as preparation of delicacies, customer service, purchasing of raw materials,
cleaning, accounting and reporting.
 Bar: This place is usually designed for the consumption of alcoholic beverages by the
guests which are licensed in most of the cases. A large counter with display of bottles and
glasses are the centre of attraction. Mini bars are placed in a room of guests which is a
small refrigerator, swim bars are at the pool side of hotels, mobile bar is a movable,
dispenser bar and mocktail bars are among the different types of bar.
 Banquet services: This category provides food and beverage services for special event
which took place in banquets and other enclosed area.
 Room services: This segment offers food services directly to the rooms of the guests. Housekeeping department: Housekeeping department of Easy Hotel ensures that guest
rooms, lobby, restrooms, dining area, hallways, elevators and other areas of hotel
premises are clean and sanitised on a regular interval so as to have a good and positive
experience of customers (Watson and et. al., 2018). There are other tasks that are
performed by housekeeping department at Easy hotel are:
 To establish pleasing and welcoming environment for guests and make sure that the staff
offers courteous, reliable and exceptional services to the guests.
 To keep proper inventory of linen and make sure that rooms, restaurants, banquet hall,
conference hall are provided with sufficient number and are ready on time before the
guests arrive.
 To meet the laundering requirement of staff uniforms, hotel linens and guests clothing.
 To keep the entire surrounding and environment of hotels such as lobby, gardens, front
area, back area etc. Food and beverage service department: Getting food from Kitchen to Table is the
responsibility of this department in Easy Hotel. Waiter, Waitress and manager ensures
that customer are served in a well and hospitable manner and make customer experience
more delightful. There are two types of Food and Beverage operations at Easy Hotel. One

is commercial F&B services which is the primary business for the hotels which
constitutes all kinds of restaurants, lounges, cafeteria, clubs and pubs. Other type of off
premise or outdoor caterings are services offered at the customer’s premises or catering
offered for the special occasions such as social events, exhibition, conferences etc.
 Front Office department: Personnel at these department are the face of the Easy Hotel
group and come in contact with the customer as soon as the guest arrives. This
department manage the bookings of client and allot the rooms as per their need and pre
booking criteria. The prime functions of this department are the reservation, guest
services, check-inns, check-out, inquiry, foreign exchanges, finance and cashiering, room
assignment etc. This department is the core of the hotels as it is located centrally and
coordinated the activities directly with the other departments on the request of the
customer. For instance, when guest make a call for a room service, front office
department make contact with the housekeeping department or when guests orders food
contact with the food and beverage department to make a guest request fulfil.
Functional department of Easy Hotel Group Purchase department: Also known as procurement department, the department of Easy
Hotel group make sure that there is always sufficient amount of inventory to manage
daily operation of hotel. These can be food raw material, equipment, machinery and other
goods. Accounting and finance department: This department looks after the financial matters of
Easy Hotel Group. Cost control, preparing of financial statements such as profit and loss
statements, preparing budget and budget statements, tax policies, compliance with laws
and policies, managing salary and other expenses of business.
 HR department: Managing people at workplace is essential as success and growth of a
company lies in the overall development of workforce (Gordon, Tang and et. al., 2019).
HR department of Easy Hotel executes numerous tasks such as planning and getting a
workforce, designing job, describing job responsibilities, induction, training and
development programmes, job advertisement, person specification and handling issue
related with retirement and promotion of workforce.

Discuss the contribution of the hospitality industry to local, national and international economies
Hospitality industry contribute largely towards the development of country through their
significant contribution to the local and regional economy. However, companies like Easy Hotel
with their overseas operation also contributes to the local economy to a larger extent (Filimonau
and Mika, 2019). Below mentioned are the ways in which Easy Hotel contribute directly towards
the development of economy:
Figure 1: Contribution of travel and tourism to GDP, 2021
Source: (Contribution of travel and tourism to GDP, 2021)
Contribution to local economy Building infrastructure: In order to execute the hospitality operations different business
units need well designed premise from where they can serve the customers. Tourists are
attracted by good infrastructural facilities and more customer generates a more revenue
which in turn further leads to the development of other infrastructural facilities such as
roads, communication, medical facilities etc.
 Generates employment: Hospitality sector provides more employment opportunities to
the people than any sector. There are numerous jobs such as, tour planner and operators,
tour guides, travel consultant, personnel of concierge, restaurants, hotels etc.
Employment generates wealth for the people which in turn helps in improving standards
of living.

Contribution to national economy Generates income: Hospitality industry generates huge amount of wealth for government
through numerous activities such as hotel booking, consumption of eatable materials,
visiting monuments, and other attractions. Providing fair wages to the employees, Easy
hotel contribute largely towards economic development. There is increase in the standard
of living of a people when affordable income is provided to the employee and they are
more likely to spend money.
 Boost local industries: Hospitality industry support other industries too as large footfall
of people as a tourist attract towards the indigenous products of the visited place. Other
sectors like food production, auto-mobiles or catering companies also gets affected
through large number of tourists (Kaya and Karatepe, 2020). Hotel operations give
support and business to the other sectors also such as acquiring raw materials from
farmers, dairy products, development of local infrastructure etc.
Contribution to international economy Foreign exchange earnings: Having a business operation at an overseas market help in
generating the foreign currency. Tourists visit from all over the world and make their
spending in their local currency which leads to bringing foreign currency into the host
country. Easy Hotel have its operations in multiple countries due to which they receive
booking amounts in local currency, thus increasing flow of international currency and
foreign reserves.
 Foreign direct Investment: Foreign direct investment is another way through which
hospitality industry contribute largely towards the international economy. Finding more
opportunities for growth, low labour cost, availability of material are the numerous
factors that attract foreign investors to make investment in the host country. Easy Hotel
expand its business operations where, there is an economic stability and easy availability
of raw materials. Expansion into the foreign market generates employment, income
through taxes, and development of infrastructure and technologies.

Task2
Investigate a range of different operational roles within hospitality industry
There are different roles and responsibilities performed in overall hospitality industry
such as Hotel, restaurants, casinos, cruise, entertainment parks and theme parks (Tu, Neuhofer
and Viglia, 2018). Below mentioned are the range of operational job roles performed in the
hospitality sector: Concierge: The one who interacts with the customer is known as the concierge who
respond to the customer queries and anticipate what can cause customer to get interact
with him or her. It is considered to an entry level job however luxury and expensive
hotels ask for the experience. Personnel must possess good customer service skills to
handle the customer in each and every aspect. Hotel receptionist, guest relation manager,
front office attendant, casino host, cruise ship attendant are the few examples of
concierge at Easy Hotel. Event planner: MICE is a significant type of business under hospitality industry. Many
hotels have a conference or meetings rooms which offer space for conducting MICE.
Event planner at hotel works for the arrangements of the events ranging from meetings to
wedding, and ensures that the everything go as per the plan without any difficulty. Event
manager, wedding coordinator, MICE manager or executives are the few example
performing this role at Easy Hotel. Steps by which an event planner organise an event: The initial stage comes with defining goals and objective of an event, it can be for a
social, profit-oriented or branding and promotional purpose. The next step is setting a budget followed by organising a team for event which is
sponsor, venue management, publicity, and volunteer management. The next is to create a master plan for an event followed by date and which includes all
the activities conducted pre, during and post event. The execution of event is followed by the selecting a venue, methods for promotion,
branding and publicity and find out relevant sponsors and partners if any. Executive chef: An executive chef performs the job role in food operation department
where he/she looks for the food preparation at hotels, restaurants, casinos and other
premises dealing in hospitality industry (Morosan and Bowen, 2018). Chef, cook,

catering manager, food and beverage manager and restaurant managers are the personnel
execute this job role. The several job roles performed by executive chef are: Design menus as per the taste of the customer that enrich the experience of customer with
expected quality and taste. Executive chef must ensure that the all food preparation is done with safety, hygiene and
as per regulatory guidelines. The prime role of executive chef is to hire, train and guide the workforce on a regular
basis. Porter: The role of Porter in Hospitality industry is to handle the luggage of guest who
arrive at the property. They carry luggage from lobby to room at the time of check-inn
and room to lobby while leaving a hotel premise. Alike Porter, there is also a Valet who
park the vehicle of guest when they arrive or leave.
 Waiter/Waitress: These personnel perform the job role in restaurants, bars, casinos,
hotels, cruise dining and other areas where food is served. They interacts directly with the
customer while taking order, serving food and beverages and making any
recommendation for making food choice (Olya, Bagheri, and Tümer, 2019). They are the
true representative of food and beverage industry who can enhance the customer
experience.
Examine the skills required for roles within the hospitality industry and skills shortage
There are numerous skills that make the work more effective and productive while
performing a job responsibilities in hospitality industry. These skills gives competitive edge to
the workforce and help them in delivering quality of work.
Skills required for roles within hospitality industry Precision: Hospitality industry is making continuous efforts in enhancing the customer
experience through paying attention to the minute and significant details that may add
value to their experience and make their day memorable. Workers at Easy Hotel group
keep in mind taste, likes, dislikes and preference of a customer and delivers a products
and services which are customer oriented that help in building image of a company. Industry Awareness: It is essential for the workforce and the management to be clear and
updated about the numerous policies, norms and standards to be followed at workplace
which increases the customer and employee satisfaction at the same time. Easy hotel

conduct analysis of internal factors which are employees, strategies, plans and policies,
financial resources, brand image and value preposition to remain competitive in a market.
Additionally, with the analysis of external factors such political, economic and social
factors prevents the Easy hotel from any future threats and contingencies, and provides
knowledge of various opportunities to exploit for the survival of business. Time Management: Delivering products and services on time is key success for
hospitality industry. Easy Hotel reduce the client waiting time to a significant level by
delivering services on time and with desired quality. Providing hot and fresh food in
restaurants, addressing room service request on time, cleaning and preparing of room on
time before guest arrive are the few examples which states that Easy Hotel follow time
management (Rajaguru and Hassanli, 2018).
 Interpersonal skills: These skills are essential in enhancing the customer experience as
these skills help in interact with the customer in a better and attractive way. There are
numerous skills which together form a interpersonal skills, however communication
skills such as active listening and speaking skills makes a significant impact over
customer and display a positive attitude of a work personnel.
Shortage of Skills in Hospitality industry
 Poor team morale: One of the significant challenge faced by hospitality industry is
low team morale where performance of one employee affects the performance level
of others (Gamor and et. al., 2018). One of the biggest reason is that performance of
hospitality sector is judge by the customer and their overall experience. In order to
overcome this issue Easy Hotel can create a positive organisational culture where
employees are regarded as a family and their efforts are praised collectively rather
than individually.
 Incompetency: Another skills which is lacking from hospitality sector is the inability
to compete which is because of the absence of young, talented and skilled workforce.
To overcome this problem Easy Hotel should hire the fresh and young talent from
campus and offer them a continuous learning and development so as to enhance their
skills and knowledge.