Contemporary Hospitality Industry Report: Premier Inn Analysis

This report provides a comprehensive analysis of the contemporary hospitality industry, using Premier Inn as a case study. It explores various business types within the industry, including accommodations, resorts, and hotels, and examines the diverse product ranges offered. The report defines operational and functional departments within a selected hospitality business, such as reception, housekeeping, maintenance, and human resources, and analyzes their interrelationships. It investigates the hospitality industry's contribution to national, local, and international economies, highlighting the impact of franchising and licensing agreements on global development and economic worth. Furthermore, the report investigates different operational roles within the business, analyzes required skills, identifies skill gaps, and proposes solutions to address these gaps, providing a well-rounded overview of the industry's challenges and opportunities.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Various business types in hospitality industry & diverse product range that is offered..............3
Define various ranges of operational & functional departments in selected hospitality business
.....................................................................................................................................................4
Examine contribution of hospitality industry to national, local, and international economies. . .5
Interrelationships of operational and functional units within a chosen hospitality business.......6
Use of franchising & licensing agreements has influenced global development of hospitality
sector............................................................................................................................................6
Explain how global growth, franchising and licensing developments have contributed to
economic worth of hotel business................................................................................................6
Investigate a range of different operational roles in the business................................................7
Analyse skills that are part of the industry..................................................................................7
Identify the skills gaps within the hospitality industry in relation to a range of different
operational roles...........................................................................................................................8
Impact that skills gaps have on hospitality businesses and make valid solutions for addressing
these skills gaps...........................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Organisations are broader and wider it consist of various types of business like small, medium
and large ventures. Premier inn is considered as the best hotel chain in UK it has 800 hotels and
72000 room so that best quality services can be given to the customers. It was founded in 1987 it
headquartered in Dunstable, United Kingdom. There are various competitors of Premier inn in
UK which are Marriott, Accor, best western hotel and resort. This report involves various types
of services which the company offers to the clients, contribution of the company to national,
local and international level, use of different agreement, various roles of operations and other
department in the business, impact of skill gap in the company, affect of potential and current
trend, external and internal analysis (Dadić, 2020).
MAIN BODY
Various business types in hospitality industry & diverse product range that is offered
Hospitality industry involves various types of services depending on which different business
activities is carried out. Premier inn provides different categories of product and services to the
clients so that demand of the business can be increased in the economy.
Accommodations: It is a kind of services which is given the company to the clients which are
travelling so that they get right place to stay and enjoy their tour. If the person is moving from
one place to other place then they require a comfort place where they can stay in. Premier
provides the best accommodation services to the customers across the world so that people
cannot face any issue and can get luxurious experience.
Resorts: It involves different services like entertainment zone, food court, shopping, bars etc. So
that customers can enjoy without moving to other place. Providing the different services helps in
satisfying the need of the customers which further helps in increasing the goodwill of the
company.
Beach resorts: It provide the facilities like holiday lodging, artificial swimming pools, private
beaches tourist gets attracted easily by this unique services which companies provides. If
customers will not get innovative facilities as compared to other companies then profit and
demand of the company can get decreased.

Ski resorts: As the demand of the customers hotel industry is developing its services so that more
profit can be earned. Ski resorts involves skiing, snowboarding, winter sporting so that customers
can get some new experience.
Hotels: Hotels sector in the hospitality industry provides wide range of services as per the
requirement of the customers. Like event management, hotel rooms, decoration and other
facilities.
Motels- it is another type of organisation where one particular building offers accommodation to
those clients who are looking for limited services and facilities.
Pub-It also belongs to the hospitality industry as it is an entertainment area in which customers
enjoy and feel music, concerts, eating and drinking and many more which makes them feel
relaxed in the business (Alvarez, 2021).
Define various ranges of operational & functional departments in selected hospitality business
Various types of operational and functional activities are there in the business which futher help
to carry out suitable activities theses activities are mentioned below
Operation department – they pay attention to all duties and activities which are taking place in
the business so that best services can be given to the customers. Various operation activities of
Premier inn are given below:
 Reception services – This department meet customers and guests directly. The main aim
of this department is to manage the customer demand by maintaining effective
communication with them.
 Room cleaning – This department keeps the rooms clean so that customer can get the tidy
rooms because cleanliness in the place makes the customers more satisfied. Keeping the
infrastructure clean helps in improving the revenue of the revenue of the customers by
attracting the attention of the customers.
Functional Department- This department focuses on the proper use and functioning of the hotel
activities and its operation.
 Maintenance-It helps in maintaining the tools and equipment of the business which are
used on the daily basis so that functioning of the business cannot get affected in the
business.
 Human Resources Department-The aim of this department is to recruit best employees
and select skilled applicants related to vacancy available in the company.

 IT Department- This department helps in protecting the personal information of the
clients so that trust of the customers can be gained. In the organisation there are various
information which should be kept private in the business (Gallan, 2021).
Interrelationships of the various operational and functional sectors:
 Housekeeping and front desk- The operational and functional departments are
interrelated. For example, front desk and housekeeping service are responsible for
dealing with customer issues department In Premier inn It department is in contact with
each department to ensure the safety of these clients in the business they helps in
providing the required equipment to the customers.
 HR and IT departments - Human Resources IT departments are related with other . This
is because HR is responsible for storing and protecting the personally information of its
customers with the help of the IT department, which uses a variety of technologies to
secure the stored information so that proper security can be given to the customers
(Trinajstić, 2020).
Examine contribution of hospitality industry to national, local, and international economies
The hotel industry makes a significant contribution to the country's economy, as 4% of the UK's
GDP is made up of hotel businesses and services that provide a huge growth and development.
 National Economy-The hotel sector facilitates music contributions to the UK national
economy as approximately 700 companies and services are associated with the hotel
business and provide various employment opportunities in the marketplace which helps
in increasing the growth chances of the economy.
 Local- The hotel businesses contribute to the login level within a country's local economy
by increasing the areas and tourist destinations of the local economy that help others
participate in other communities, religions and cultures. This will create a positive
environment for the society and the community.
 International- At the international level, the hotel sector also makes a significant
contribution to the economy by investing its business in abroad, which helps in the
development of the different areas due to which goodwill of the particular country also
gets increased.
As per the above paragraph, it has been observed that the hospitality business makes a significant
contribution in all countries, regions and defined economies.

Interrelationships of operational and functional units within a chosen hospitality business
The operational and functional units are important in business because without this company cannot
achieve its goals. it's not easy for hotels to perform their activities smoothly. International in
operating units as well as functional units described below –
Front Office and housekeeping: Front office ensure that the housekeeping department is fulfilling its
responsibilities or not and housekeeping department give the information to the front office so that
various services can be performed accordingly.
IT & HR: IT and HR department are also connected with each other, as the IT department is
responsible for ensuring personal authentication and privacy information of all customers and guests.
The Human Resources is responsible for storing the reliable information of the applicant in a
systematic order. Both departments are to ensure the main objective, data and privacy policy of
customers and guests.
Use of franchising & licensing agreements has influenced global development of hospitality
sector
It is very important that the entire business unit expands into different country markets in order
to expand its business for this a market entry strategy must be adopted. Develop your business
with franchises and licenses, taking into account the selected hotels.
Franchising-It means the process and market entry strategy used by an organization that grants
access to a Gordon, 2021).
Licenses-Licenses are another type of marketing and strategy that grants permission and
authority to other individuals to use their intellectual property rights over a specific period of
time.
It was also considered that it is important to properly implement franchises and licensing
agreements within the business so that Premier inn hotels can easily increase its market share in
other countries.
Explain how global growth, franchising and licensing developments have contributed to
economic worth of hotel business
Hotel companies and industries use different types of strategies to extend their business to the
international level so that they can achieve higher profits and achieve their goals. Franchises and
licensing agreements are primarily favourable conditions in the hotel industry to contribute and

develop business as well as revenue growth at the same time. The contributions of these two
terms are as follows.
 Franchise-A contract type used by an organization to expand its activities in other
countries or regions. The process by which a franchise allows a franchise to use a product
or service. The main advantage of this is it gives you access to too many new
opportunities in the business and allows to enhance the goodwill of the company in the
marketplace.
 License - A license is a market entry strategy used by Premier inn, allowing others to use
its intellectual property and brand for a specific period of time. The main advantage and
contribution of this agreement is that the hotel is the capital of mergers with other
businesses, which will lead to develop the growth of the company.
Investigate a range of different operational roles in the business
It is important that the operations department perform all aspects of the hospital industry and
provide customers with the best services. The selected hotel has various types of operational
roles.
 Food and Beverage Manager- They plays an important role in the operations department.
food and beverage managers have to handle the quality of food which they are providing
so that health issues cannot take place. Better food quality helps in attracting the client
towards the services of the company.
 Housekeeping manager – They help in ensuring that the infrastructure of the company is
clean is not if the activities are not performed properly then appropriate actions are taken
so that services can be improved and meet the requirement of the customers so that more
income can get generated (Pius, 2020).
Analyse skills that are part of the industry
Skill plays an significant role in the hotel industry are not easy for people to properly carry out
their activities and responsibilities. Various types of abilities are associated with different parts
which are mentioned below:
Operations Director-
Operational manager helps in managing and controlling the production services of the business
in the marketplace. if the activities of the business will not be managed properly then it can affect

the services of the company in the marketplace. To gain the position of operation managers
below skills are required.
skills :
Communication capabilities – it helps in creating a positive images of the individual in the
business by enhancing the confidence level so that there growth chances can also get developed.
It helps in creating proper management in the business so that miscommunication cannot take
place. If the individual will not have the proper communication skills then it can affect the
services of the company.
IT department - it helps in providing the data to the business so that various activities can be
performed accordingly there are various skills which are required for this department so that
advance technologies can be operated easily.
Skills:
problem solving – IT department solve the problem of the business so that various activities can
be performed in the basis of it. Managing the information of the clients is the main objective of
the this department because if the data will be misused then it can affect the image of the
company in the marketplace.
Identify the skills gaps within the hospitality industry in relation to a range of various operational
roles
The hotel industry is growing and changing very fast, so the skill gaps in the staff members also
grows, due to which company is not able to perform its activities effectively in the business. skill
gap affect the services of the business in the marketplace. various types of skills gap are there
which are to be identified properly so that company cannot face any loss in the future (RWIZA,
G.M., 2020).
Skill gap in the hospitality sector: In the competitive world every organisation is using advance
technologies in the business due to which employees are facing issue in using this technologies
due to the lack of knowledge they have. Employees does not get the proper guidance from the
leaders due to which they face issue in performing multiple task in the business. lack of
knowledge and skills affects the ability of the individual to perform the task more effectively. To
increase the profit of the business it is important for the business to train the employees more
effectively so that skills of the employees can be enhanced and more profit can be earned.

Affect that skills gaps have on hospitality businesses
Skill gap affect the hospitality industry due to which company cannot be able to gain competitive
advantage in the marketplace. for dealing with the competitors proper skills and knowledge is
required. Various impact of skills gap is mentioned below:
 Issue in dealing with the competitors: Due to the skills gap in the business. company is
not able to compete and deal with the competitors who are using innovative technique
and ideas to enhance their services in the marketplace which further affects the services
of the company.
 Difficulty in giving better services to the client: with the lack of skills and knowledge
company cannot be able to satisfy the demand of the customers in the marketplace which
gives the advantage to the competitors in the economy (Al-Fadly, 2020).
Solution to the skill gap
 Training programmes: Premier inn should arrange various training program in the
business so that skills of the employees can get developed and their efficiency can also
get improved. Improving the knowledge of the employees will helps in providing the new
variety of goods and services to the client due which increase the demand of the
company.
CONCLUSION
From the given report it has been observed that hospitality industry helps in increasing
the GDP of the country by attracting the tourist by their services. Hospitality industry provides
the services by identifying the needs and requirement of the client so that profit of the company
can be increased and growth of the economy can also take. There are various licensees and
agreement which the industry has to follow so that there can expand their business across the
geographical boundaries. There are various impact of the skill gap in the business which need to
be improved by the business so that services of the company cannot get affected.

REFERENCES
Books and Journals
Dadić, L., Ribarić, H.M. and Vlahov, B., 2020. INVENTORY MANAGEMENT IN BARS AND
RESTAURANTS–EMPLOYEES'ATTITUDES. In Faculty of Tourism and Hospitality
Management in Opatija. Biennial International Congress. Tourism & Hospitality
Industry (pp. 79-91). University of Rijeka, Faculty of Tourism & Hospitality
Management.
Alvarez, T., Sensini, L., Bello, C. and Vazquez, M., 2021. Management Accounting Practices
and Performance of SMEs in the Hotel Industry: Evidence from an emerging
economy. International Journal of Business and Social Science, 12(2), pp.24-35.
Trinajstić, M., 2020. BOOK REVIEW: Tourism Economics and Policy, Larry Dwyer, Peter
Forsyth and Wayne Dwyer. Tourism and hospitality management, 26(2), pp.471-474.
Stemele, L., 2020. Career advancement of tourism and hospitality management graduates: the
case of Walter Sisulu University, Eastern Cape (Doctoral dissertation).
Ivanov, S. and Webster, C., 2020. Robots in tourism: A research agenda for tourism
economics. Tourism Economics, 26(7), pp.1065-1085.
Leonidova, E.G., 2020. Stimulating final consumption within the reduction of regional
inequality. Ekonomicheskie i Sotsialnye Peremeny, 13(3), pp.59-73.
Gordon, S.E., 2021. The well-being and subjective career success of workaholics: An
examination of hospitality managers’ recovery experience. International Journal of
Hospitality Management, 93, p.102804.
Gallan, A.S., Kabadayi, S., Ali, F., Helkkula, A., Wu, L. and Zhang, Y., 2021. Transformative
hospitality services: A conceptualization and development of organizational
dimensions. Journal of Business Research, 134, pp.171-183.
Reade, J.J., Schreyer, D. and Singleton, C., 2020. Stadium attendance demand during the
COVID-19 crisis: Early empirical evidence from Belarus. Applied Economics Letters,
pp.1-6.
Pius, A., Alharahsheh, H.H., Nwaogbe, O. and Dariescu, M., 2020. Contemporary Quality
Management Approaches and Practices Within the Hospitality Industry.
In Contemporary Management Approaches to the Global Hospitality and Tourism
Industry (pp. 1-34). IGI Global.

Al-Fadly, A., 2020. Impact of COVID-19 on SMEs and employment. Entrepreneurship and
Sustainability Issues, 8(2), p.629.
RWIZA, G.M., 2020. Effects of Supervisor-Employee Relations on Employee Performance in the
Hospitality Industry, the Case of Hotels in Dar es Salaam Region (Doctoral
dissertation, Mzumbe University).