Contemporary Hospitality Industry: A Comprehensive Overview

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on various business types, operational and functional departments, and the contributions of the sector to local, national, and international economies. The report uses Intercontinental Hotel as a case study, examining its operational structure, including front desk, housekeeping, and food production departments, and its functional units such as accounting, maintenance, and human resources. It explores the interrelationships between these departments and discusses the impact of franchising and licensing agreements on the industry's global development and economic worth. Furthermore, the report identifies different operational roles within the industry, the required skills for these roles, and existing skill gaps, offering potential solutions to address these challenges. The report concludes with a discussion on the impact of skills gaps on hospitality businesses and potential strategies to mitigate these issues. It offers a detailed overview of the industry's dynamics and challenges, providing valuable insights for students and professionals in the field.

Contemporary Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
Main Body.......................................................................................................................................3
Discuss different kinds of business in hospitality industry along with the products & services
they offer......................................................................................................................................3
Operational and functional departments within selected hospitality organization......................4
Contribution of hospitality industry to local, national and international economies...................5
Interrelationship between operational and functional units of hospitality organization..............5
Discuss the way in which franchising and licensing agreements influenced development of
hospitality industry at global level...............................................................................................6
Discuss the contribution of franchising and licensing development towards economic worth of
hospitality sector..........................................................................................................................6
Different operational roles within hospitality industry................................................................7
Skills required for performing roles in hospitality industry.........................................................8
Discuss gaps in skills within hospitality industry in context of different operational roles........8
Examine the impact of skills gaps over hospitality business also provide appropriate solution
in order to address the gap issue..................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality sector involves diverse kind of business connected to food, beverages, and
accommodations and so on. It signifies that hospitality sector is very important within economic
success and growth of country by creating opportunities of employment for individual person in
country. In context of UK, the hospitality sector is determined as biggest employment industry
that provide job to around 4.49 million individual person every year. The hospitality industry of
UK increases their contribution of 5 9.3 billion within GDP of nation in year of 2019. The
present segment is depending on Intercontinental hotel. It is well- known organization within
hospitality sector of UK. They offer luxurious services to customers and looking forward
towards expansion of organization. This report focuses on diverse part, the first part signifies
different kind of industry in addition with detail in respect of operation as well as functional unit
of company and the contribution and efforts of hospitality sector as well as interrelationships
among operational and its functional unit that is discussed in current assignment. It involve skill
gap in order to execute or perform diverse operational role in company. In addition to this, the
SWOT analysis of company, effect of external element with capability of business organization
in order to meet current or present trend in market that is covered in second part related to report
(Albercaand Parte, 2018).
Main Body
Discuss different kinds of business in hospitality industry along with the products & services
they offer
Hospitality sector is determined as a large sector that comprises different kind of
organization for meeting requirement of user in an appropriate way. There are different kinds of
hospitality organization that is given below:
Accommodation it is important part of hospitality sector in which service is provided or
offer to its guest. There are different kinds of facility that is essential for comfortable stay
positive accommodation that is provided by Hotel resorts and so on.

Adventure and recreation herein, the activities conducted to enjoyment, relaxation as
well as entertainment are involved. The facilities provided by resorts, clubs where individual
person go and enjoy their time. There is diverse kind of resorts like beach, Ski resorts and many
more that provide different kind of recreational as well as entertainment facility.
Hotel providing lodging services for specific time period. It also provides different kind
of varieties that are important for satisfaction of user. There is different kind of services like
accommodation food that is provided by Hotel. Marriott, Hyatt is determined as a several
examples related to hotel.
Operational and functional departments within selected hospitality organization
Operational department:
Front desk services the department related to Intercontinental hotel focuses on
interacting with its guest in order to visit hotel. They take calls and booking reservation
according to need of guest and also make sure that they provide appropriate solution of problems
that is confronted by guest while staying.
Housekeeping department it is the responsibility of housekeeping department to
manage clean environment within hotel for guest satisfaction. The food production department is
determined as a department of hotel that is liable to offer qualitative & fine food to its guest
(Bharwani and Talib, 2017).
Functional department
Account department in context of account department related to Intercontinental hotel,
the individual person focuses on putting appropriate control on cash inflow as well as outflow for
maintaining appropriate funds in organization. Herein, the focus is on preparing & maintaining
financial reports in timely manner.
Maintenance is a primary purpose of maintenance department is to make sure that is
smooth functioning and activity of equipment in hotel. They required analyzing performance
related to tools machinery and also focusing on repairing it accordingly.

Security department all function and activity connected to safety are executed through
security department related to Intercontinental hotel.
Human Resource Department in hospitality sector, it is significant to recruit qualified
subordinates during particular phase of time period so that the HR manager of Intercontinental
hotel execute diverse activity for getting qualified candidate during the period of time.
Contribution of hospitality industry to local, national and international economies
It is assess that hospitality sector focuses on growing in rapid manner and play important
role in the growth and development of economy at national and international level. In local level,
it grabs employment opportunity to local individual person so that they can interact along with
basic essential. The hospitality sector is significant for growth and development of nation, it is
assess that there are around 4.49 million individual person employed within hospitality sector
that is nearly around 10% of overall population of nation. There are around 223045 hospitality
related organizations within UK that increases their contribution and significant part within
whole GDP. It signifies that hospitality industry provides significant contribution or efforts at
global level. As per this report, the Global hospitality sector has around turnover of $ 7.6 trillion
on annually. The tourism as well as hospitality has profound role within economic growth and
development in every nation around the globe (Chudnovskiy, Tsabolova and Zhukova, 2020).
Interrelationship between operational and functional units of hospitality organization
There are diverse departments who perform their work within hotels that is interrelated
with one another in proper way. The interrelationship is going to be given below:
Marketing & front desk services the marketing department required to coordinates or
corporate with front office people in order to gather information connected to guest that assists in
formulating appropriate strategy. In addition to this, the people in front office also take benefit &
advantage along with marketing offer facility that increases base of customer of organization that
results in growth and development of company.
Housekeeping and maintenance department housekeeping individual person offers
information to its maintenance department in respect of defect within electrical equipment. In
addition to this, the maintenance of individual person also taking help of housekeeping sector in
order to fulfill roles as well as responsibility in proper way.

On basis of above given discussion, it is assess that all operational as well as functional
department related to hotel are linked with one another that is important for executing all
necessary activity in appropriate manner. Furthermore, there is an interrelationship which is
important for providing appropriate services to its guest in order to create profit margin.
Discuss the way in which franchising and licensing agreements influenced development of
hospitality industry at global level
Franchising it is a method that is often adopted by organization in order to expand entity
at international level. Franchising is significant method that is used by Hospitality Company in
which they enlarge organization. McDonald as well as Hyatt is determined as a different
example that is adopting franchise for organization and expansion at international level.
Franchising provide support to diverse economy in context of franchising of organization in
appropriate way. Along with franchising, the local economy also focuses on getting advantages
in context of increasing job, taxes as well as community involvement. The Intercontinental hotel
is determined as a prominent hotel which is located in London and the focus is on expanding
organization by improving subsidiary depend upon franchising for increasing brand name related
to hotel at international level (Farmaki, 2019).
Licensing it signifies different rules & regulation that is important for starting
organization. The license must be provided by existing organization to another subsidiary firm so
that they can perform their work under similar brand name. It is assess that licensing plays an
important role in improvement of hospitality industry within UK. Through license, it is possible
for organization to expand its company and work with diversify goods and services around
diverse countries at global level. By licensing, Intercontinental hotel focuses on enhancing brand
presence in diverse nation through exploring innovative goods and services in an appropriate
way.
Discuss the contribution of franchising and licensing development towards economic worth of
hospitality sector
It signifies that franchising as well as licensing is very important in growth and
development of economy and hospitality sector. Therefore, it is useful in increasing presence of
organization that create employment or job opportunity and also increase their contribution in
respect of economic growth. The contribution of this kind of element that is given below:

Franchising there are different kinds of famous brand that is adopted at international
level with purpose to expand organization with similar brand name. It is important method to
enlarge organization in diverse Nation that allows organization to target at local audience in
appropriate way. It is assess that Hotel opt practices that focus on creating higher level of
revenue and profit as compared to another organization. In assistance of this, it aids assistance in
creating a new job opportunity at international level.
Licensing herein, the owner of organization offers legal rights to use intellectual property
& brand name of organization to another party that signifies licensee in hospitality sector. It is
determined as a common practice as there is different kind of well-known & famous brand that is
adopting. This kind of method helps in makes sure that there is an important person in another
country. Through licensing, the organization do not focuses on making it presence at
international level but also increasing their contribution in growth and development of economy
in context of respective country. It is the method of expanding organization that creates huge job
opportunity for growth in future period of time.
Different operational roles within hospitality industry
In hospitality sector, there are different kind of operational role that is executed by
operational department related to Hotel like front office, food as well as beverages and many
more. The role of operation department related to Intercontinental hotel that is given below:
Housekeeping department this sector has direct effect on experience of guest so that its
role is to maintain hygienic environment so guest do not confront any type of difficulties &
complexity (Golubovskaya, Robinson and Solnet, 2017). In assistance of this, the main duty is to
manage appropriate amount related to storage of significant item like lines, supply of guest and
so on. The housekeeping sector is also focuses on maintaining neat atmosphere along with
promises so that it attracts large number of guests during the period of time.
Food production department this department focuses on preparing superior quality of
food for catering requirement of guest in proper way. It signifies staff executed role of job so that
user get satisfied.
Front office department the individual person focuses on greeting user and make sure
that they focus is on comfortably staying along with hotel. It is the responsibility in order to

resolve issues and problems of guest in best manner. If there is any kind of complaints is raised,
it is responsibility of front office individual person to address issues in an appropriate manner. In
assistance of this, the individual person required to make sure that customer get positive or
favorable experience in order to stay so that they can focuses on visiting hotel again.
Skills required for performing roles in hospitality industry
The skills are significant at every level of hospitality sector. It is difficult to execute
diverse responsibility within an organization. In reference of intercontinental hotel, there is
different kind of departments in which they needed to hire competent candidate. Herein, there is
different kind of skills that is needed to execute role of job within hospitality sector that is given
below:
Skill set for operational manager operational manager focuses on undertaking daily
functions of hotel in proper way. It is needed to possess different kind of skills such as
communication, technical as well as negotiation and so on. In context of chosen organization, it
is the responsibility of operational manager to assess external or internal atmosphere for
executing appropriate strategy for increasing productivity.
Skill set for role of front office manager the individual person focuses on interacting
with its guest and also greet them through which they are needed to possess communication
problem solving capability in order to manage its relationship along with guest.
Skill set for role of housekeeping manager the housekeeping manager required to
possess capability to supervise subordinate and its activity. They also required possessing
appropriate skills for influencing staff that they perform their task in proper way. There is a need
to possess knowledge in respect of cleanliness in order to maintain hygiene made in hotel
promises (Kallmuenzer, 2018).
Discuss gaps in skills within hospitality industry in context of different operational roles
Within hotel, the operational roles like front office, housekeeping are executed in proper
way through which it is significant to possess essential skill in order to execute a lot of task in
best way. As due to changing times, it is necessary to satisfy to need of hospitality sector that is
changed through which there are different kind of gaps skill is identified. It is a need to
emphasize on improvement of hard skill like proficiency with another adopting technology

Microsoft technique and so on. It is significant to improve skill connected to budgetary logistic
administration in order to run organization appropriately way. In addition to skill, it is imperative
to improve communication, working capability and so on. It will assist operational manager of
Intercontinental hotel to execute daily role as well as responsibility in proper way.
Examine the impact of skills gaps over hospitality business also provide appropriate solution in
order to address the gap issue
Get the skill & knowledge profound effect on organization as through which the
individual person are not capable to perform role as well as responsibility in proper way.
Increase in productivity as well as efficiency of hotels as it is important to address gap
in proper way and that is given below:
The gap in its skill can minimize by offering appropriate training to individual person in
context of Intercontinental hotel, they are needed to assess current skill and knowledge of
subordinate and perform on the job and as well as off the job training for increasing potentiality
of subordinate. They need to arrange different kind of program within predefined interval in
order to maintain consistency with learning this method will assists organization to minimize gap
in skill and increase productivity of subordinate (Ram, 2018).

CONCLUSION
On the basis of given report, it is assess that hospitality sector involves diverse kind of
business connected to food, beverages, and accommodations and so on. It signifies that
hospitality sector is very important within economic success and growth of country by creating
opportunities of employment for individual person in country. This report focuses on diverse
part, the first part signifies different kind of industry in addition with detail in respect of
operation as well as functional unit of company and the contribution and efforts of hospitality
sector as well as interrelationships among operational and its functional unit that is discussed in
current assignment. It involve skill gap in order to execute or perform diverse operational role in
company. In addition to this, the SWOT analysis of company, effect of external element with
capability of business organization in order to meet current or present trend in market that is
covered in second part related to report.

REFERENCES
Books and Journals
Alberca, P. and Parte, L., 2018. Operational efficiency evaluation of restaurant
firms. International Journal of Contemporary Hospitality Management.
Bharwani, S. and Talib, P., 2017. Competencies of hotel general managers: a conceptual
framework. International Journal of Contemporary Hospitality Management.
Chudnovskiy, A.D., Tsabolova, O.R. and Zhukova, M.A., 2020. Using the Digitalization
Experience of Small Enterprises of the Tourism and Hospitality Sector in Germany for
Development of the Tourism Infrastructure in Russia. Socio-economic Systems: Paradigms for
the Future, 2, p.369.
Farmaki, A., 2019. Corporate social responsibility in hotels: a stakeholder
approach. International Journal of Contemporary Hospitality Management.
Golubovskaya, M., Robinson, R.N. and Solnet, D., 2017. The meaning of hospitality: do
employees understand?. International Journal of Contemporary Hospitality Management.
Kallmuenzer, A., 2018. Exploring drivers of innovation in hospitality family firms. International
Journal of Contemporary Hospitality Management.
Ram, Y., 2018. Hostility or hospitality? A review on violence, bullying and sexual harassment in
the tourism and hospitality industry. Current Issues in Tourism, 21(7), pp.760-774.