Contemporary Hospitality Industry Analysis: Holliday Inn Report

This report provides a detailed analysis of the contemporary hospitality industry, focusing on Holliday Inn as a case study. It begins by outlining the diverse business types within the industry, including food and beverage, accommodation, and entertainment, and the services they offer. The report then examines the operational and functional departments within a hotel, such as housekeeping, food production, front office, marketing, HR, and finance, and discusses their interrelationships. It explores the industry's contribution to local, national, and international economies, highlighting the impact of licensing and franchising on global development and economic worth. The report also identifies different operational roles within the industry, such as executive chef, hotel manager, and receptionist, along with the required skills and current skills shortages. Finally, it reviews skills gaps within the sector and suggests solutions to address them, covering aspects like technological and supervisory skills. The analysis includes relevant references to academic journals and online resources.

UNIT 1- THE CONTEMPORARY
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
Lo 1 and LO 2..................................................................................................................................3
Varied types of business within hospitality industry and diverse items & services that they
cater.............................................................................................................................................3
Examination of operational and functional departments within company..................................4
Contribution of hospitality industry to national, local and international economies..................4
Interrelationship between functional and operational departments in firm................................4
Utilization of licensing and franchising that affect global development of hospitality industry 5
Licensing developments, global growth and franchising contribution to economic worth of
sector...........................................................................................................................................5
Range of operational roles in hospitality industry......................................................................6
Examining skills required for roles in industry and current skills shortages..............................6
Reviewing skills gaps within sector............................................................................................6
Skills gaps impact on hospitality businesses and valid solutions for addressing it....................7
LO 3 and 4.......................................................................................................................................7
Covered in PPT...........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
Hospitality industry is one of the biggest category of field within whole world that
includes hotels, motels, cruises, casinos, restaurants, amusement parks, entertainment, events and
other tourism related services. It primarily includes addressing consumers satisfaction and
providing needs of number of guests in effective manner. The current study is based on Holliday
Inn which falls under category of leading hotel brand in UK. This study will explain different
forms of business within hospitality industry and diverse service & products that they offer. It
will examine range of functional and operational departments, contribution of hospitality sector
to national, local and global economies and discuss interconnections of functional & operational
units within company.
Furthermore, this assignment will justify use of licensing and franchising agreements that
influence global development of industry, contribution of global growth, licensing and
franchising developments to economic worth of sector and different operational roles within it.
This report will examine skills needed for roles and current skills shortages as well as review
skills gaps within industry in context of range of varied operational roles.
Lo 1 and LO 2
Varied types of business within hospitality industry and diverse items & services that they cater
Hospitality industry is the important part of service industry and it consists of 5 major
sub-sectors following are:
Food & beverages-
It is professionally known by their initials as F&B, it is one of the biggest segment or
business of hospitality industry (Iivonen, 2018). They cater the best food services to consumers
according to their needs and taste.
Accommodation-
It means lodging for a period or a chosen place to sleep for one or over nights. This sector
offer room service, catering service and food services as well to their target market (Berinde and
Corpădean, 2019). It also offers other hotel service to people including internet access charges
and laundry as well.
Entertainments-

Another important business of the hospitality industry is entertainment, varied forms of
guest semen to hotel some of them are concern people and leisure (Chen, 2017). They cater
themed parties, sweat room service and swimming pools facility to customers.
Examination of operational and functional departments within company
Within Holliday Inn hotel there are different types of departments accessible some are
operational and functional (Greiner and et.al., 2017). Housekeeper department, food production
and front office department are considered as operational function which cater the best quality
products or service to target market in systematic manner. Marketing, Human resource
department and finance function included in list of functional department of Holliday Inn. It can
be said that all departments are playing vital role in success and growth of company.
Contribution of hospitality industry to national, local and international economies
Hospitality industry make effective contribution to local economies as they offer the best
job opportunities to local people who are unable to improve their living standards (Kim and
et.al., 2018). Organizations operating under this industry cater different job roles that help to
improve lifestyle of people. In context of national level, hospitality industry also make a good
contribution. By generating more over than 73 Billion of GDP they can contribute effectively
and efficiently which is quite beneficial for national as well as local authority in the nation.
Progress ahead for international hospitality industry, the affect of hospitality on international
economies is important across the world, travel & tourism sector encompasses over 266 million
jobs and contributes more than 9.5 % of GDP internationally that make a huge change in life of
people. All these things, explain the useful and highly beneficial contribution of Hospitality
industry.
Interrelationship between functional and operational departments in firm
It can be said that front office department work closely to HR management (Boella and
Goss-Turner, 2019). Front office units in order to strengthen their workforce communicate to
human resource manager who is able to cater the best facilities such as develop training &
development programme for existing employees in Holliday Inn. It defines the interrelation
between these two department that is quite beneficial for hotel in term of increasing sales even
better. Furthermore, along with above departments, food production and accounts department
also work more closely with each other. Production of foods requires many things such as raw
materials to prepare food for guest according to their needs. This thing needs monetary

expenditure that is a function of finance because this department basically included making
budgets for production of products. In order to collect materials' food production manager cater
list to finance units, and then they provide money accordingly.
Utilization of licensing and franchising that affect global development of hospitality industry
With the help of franchising agreements, organizations under hospitality industry get
legal approval to establish a franchised outlets and operations wherein franchisee, among other
hotels or business across international level which in return increase the profit margin and
productivity of overall hospitality industry in effective manner (Li and Singal, 2019). It can be
said that this agreement put positive influence on sector. Along with above one, licensing
agreements also influence positively upon hospitality industry development at global level. It is
legal contract between Holliday Inn hotel in UK and another hotel outside the nation. Because of
this, companies working under the hospitality industry get legal rights that they can add their
name to the name of another company. They have all the rights to apply their brand name in new
market place which make them able to gain attention of consumers. Due to these, hospitality
industry can develop effectively to global level and generate more revenue.
Licensing developments, global growth and franchising contribution to economic worth of sector
Franchising development effectively contribute to economic worth of hospitality industry
(Iddy and Alon, 2019). It helps to expand hotels chains into global level in systematic manner
that directly support in growth of industry as they can cater quality accommodation and room
services to local people across UK. In was find out that growth of total income and net profit in
hospitality industry was due to increase number of rooms in franchising and positive dynamics of
franchise income.
Furthermore, it can be said that licensing development also efficiently contribute in same
context. Licensor provides their property right and licensee contribute expertise in Hospitality
industry. With this help to this form, Holliday Inn and other hotels can enter into foreign markets
where they can earn more by selling their services or products to new consumers which turn into
progress of whole hospitality industry.
Global growth is highly beneficial for economic worth of hospitality sector as it increase
spending ability of people for holidays or vacations with family and friends. It can increase
revenue, profitability and sales of industry.

Range of operational roles in hospitality industry
Executive chef-
This operational role within hospitality industry is accountable to oversee daily
operations of food production department. Executive chief is responsible for directing and
planning food preparation & culinary activities.
Hotel manager-
It is another role operational role available in hospitality industry and accountable for
managing staff performance and also for planning, coordinating, marketing and administering
hotel services such as accommodation and catering facilities.
Receptionist-
Hotel receptionist play vital role in hospitality industry as they greet incoming consumers
and welcome guest to the hotel like Holliday Inn.
Examining skills required for roles in industry and current skills shortages
There are varied types of skills needed in context of above three different operational
roles.
 For example, for executive chef, excellent time management skills, planning and
decision-making skills are needed in hospitality industry.
 In regard to receptionist role, effective communication, active listening and problem
solving skills are required in above industry.
 Communication, time management, decision-making and interpersonal skills are needed
for hotel manager role.
Current skills shortages-
Technology skill, Supervisory skills, willingness to learn and ability to motivate other
members of team are some skills that above roles needed to develop on timely manner.
Reviewing skills gaps within sector
Technological skills-
It is really very important for hotel receptionist to have this skill which make them able to
accomplish their tasks by using different technologies and systems for storing consumers data.
Supervisory skills-
Hotel manager must have this skill as it help them to guide and direct workers in
systematic manner.

Willingness to learn-
Some applicants within hotels would not take any interest to understand or learn new
things.
Motivational skills-
This skill gap among Executive chef role, it plays vital role as without this ability they
cannot be capable to cater food services on timely manner.
Skills gaps impact on hospitality businesses and valid solutions for addressing it
Skills gap is clear gap between what workers want or need their applicants to be capable
to do and what those staff can actually do when they walk into workplace. Above skills gaps put
negative impact on hospitality businesses including hotels, motels and food & beverage.
In order to develop these skills training and development is one of the best solutions in
context of technology skills as well as supervisory skill. To develop time management and
motivational skills applicants must take help from their seniors who are able to help as they have
so much experience.
LO 3 and 4
Covered in PPT
CONCLUSION
From above analysis, it has been concluded that Food & beverage, accommodation and
entertainment business within hospitality industry effectively offering their services to
consumers and satisfaction their needs. By working together food production, finance, front
office and human resource department help in long term success and progress of overall industry.
Furthermore, it has been summarized that by providing job opportunities to people and
expanding their business at global level hospitality sector has contributing at local, national and
global level. It can be said that by improving above skills' hotel manager, executives chef and
receptionist work effectively.

REFERENCES
Book and Journals
Berinde, S.R. and Corpădean, A.G., 2019. Assessing the Sustainable Room for Growth for a
Particular Romanian Tourism Area of Business: The Case of Accommodation
Businesses. Sustainability. 11(1). p.243.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Chen, B.T., 2017. Service innovation performance in the hospitality industry: The role of
organizational training, personal-job fit and work schedule flexibility. Journal of
Hospitality Marketing & Management. 26(5). pp.474-488.
Greiner, L and et.al., 2017. Soil function assessment: review of methods for quantifying the
contributions of soils to ecosystem services. Land Use Policy. 69. pp.224-237.
Iddy, J.J. and Alon, I., 2019. Knowledge management in franchising: a research agenda. Journal
of Knowledge Management.
Iivonen, K., 2018. Defensive responses to strategic sustainability paradoxes: Have your coke and
drink it too!. Journal of Business Ethics.148(2). pp.309-327.
Kim, H.L and et.al., 2018. The effects of corporate social responsibility (CSR) on employee
well-being in the hospitality industry. International Journal of Contemporary
Hospitality Management.
Li, Y. and Singal, M., 2019. Capital structure in the hospitality industry: The role of the asset-
light and fee-oriented strategy. Tourism Management. 70. pp.124-133.
Online
The Next 5 Years: Future Hospitality Industry Trends You Need to Know. 2020. [Online].
Available through: <https://www.socialtables.com/blog/hospitality/hospitality-industry-
trends/>