Contemporary Hospitality Industry Report - HND Assessment

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on its structure, scope, and the skills required for success. It begins by examining the different types of businesses and diverse products within the industry, using the Cafe Royal Hotel as a case study. The report then delves into the range of operational and functional departments within a hotel, highlighting their roles and importance. Furthermore, it explores the contribution of the hospitality industry to local, regional, and global economies. The report also investigates various operational roles and the essential skills needed for candidates in the hospitality sector. The report analyzes the current structure, scope, and size of the hospitality industry, emphasizing the industry's growth and its impact on the service sector. The assignment emphasizes the importance of customer satisfaction and the skills required for success in this dynamic industry.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
LO.1.................................................................................................................................................1
P.1. Different Types Of Business And Diverse Products Within The Hospitality Industry.......1
P.2. Range Of Operational And Functional departments............................................................2
P.3. Contribution Of The Hospitality To All The Economies....................................................4
LO.2.................................................................................................................................................5
P.4. Investigation Of Range Of Different Operational Roles.....................................................5
P.5. Skills Required In Hospitality Industry...............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Hospitality industry refers to a broad group of such business that provide services to the
consumers irrespective of the age and income of an individual. The chosen organisation here is :-
Cafe Royal Hotel. The focus of the hospitality industry is completely on providing the
satisfaction to the customers and giving them such experiences that, becomes completely
memorable for them (Köseoglu and et.al., 2018). Here, the project report, will lay its complete
focus on the current structure; scope and size of hospitality industry. The assignment is
completely emphasizing on the growth of the hospitality industry that it has achieved in the
service sector by providing services to the customer in all sectors. Further, the report focus on the
skills that are required in the candidates with the motive of serving best in this sector (Bowie and
et.al., 2016).
LO.1
P.1. Different Types Of Business And Diverse Products Within The Hospitality Industry
The hospitality industry is such an industry which is bustling or active and providing a lot
of services in numerous categories (Michael, 2017). But the main motto of the hospitality
industry over here is, to attain the customer satisfaction, which is the main and unifying factor
for a hospitality industry and it is shared by a list of services that Cafe Royal Hotel is offering to
its customers (Bretherton, 2017). Cafe Royal Hotel is providing services to its customers in five
different sectors:-
 Lodging - Accommodation:- It is the service that is given by the organisation that deals in
offering the facility of lodging and boarding to the customers or the travellers that travels
around the world (Wu and et.al., 2017). Accommodation is an absolutely broad sector of
the hospitality or the service industry. It includes everything from beds and breakfast
enterprise and the hotels to the other facilities that offer lodging services. The satisfaction
of the customer is completely critical in case of providing the accommodation services.
And, it's all about the efficiency; integrate comfort and the world class amenities are also
its foundation (Wu and et.al., 2017).
One of the most important thing that the customers need at the time of travel is
accommodation facility. Other two things are:- transportation and the food. A lot of focus and
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efforts are being made by the people to improve the experience of lodging facility of the
customers that are travelling around the world this time (Michael, 2017).
 Food And Beverages:- This is the second crucial factor that plays a very important role in
the hospitality sector. It's the another wide sector of the hospitality industry. This is such
a sector or such type of service, that reign supreme in the industry (Ladkin and Buhalis,
2016). Starting from something very simple like an eating house or a restaurant all the
way to a high end hotel or restaurant and every catering establishment in between. There
can be a long list in the food industry when we categorize the food service or the food
items of the hospitality industry (Ladkin and Buhalis, 2016). Below are the key
categories of the services that are catered by the hospitality industry to the people:-
11 Quick Service Establishments:- These are the commercial food service
restaurants, that compete for the customers who look to offer quick
snacks; drinks; and meals.11 Catering Business:- This is the category that provides food and beverages
for any special occasion- from wedding to the birthday parties and
everything in between (Arsyad and Rosyidin, 2015).11 Full Service Restaurant:- These are the typical restaurant or the eateries
which feature course meals; drinks and a plethora of other food service.
These establishments usually seat you at a table and use waiters to take
food orders.
 Travel And Tourism:- This is a vast sector in the hospitality industry with the several key
players across the globe. Most of them include trains; airlines; cruise ships; and several
crew members in their service. It could also be seen as the business in which the
members of the travel and tourism sector play a vital role in moving the people from one
place to another. The travel and tourism sector is like a backbone of the hospitality
industry. The domain of the travel and tourism sector is playing a very crucial role in the
strengthening the hospitality and the service industry (Lui, 2015). Different types of
tourism include:- adventure; medical; cultural; eco-tourism; business tourism; religious
and agritourism.
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P.2. Range Of Operational And Functional departments
Any hotel in this world would not be able to perform its functions properly until and
unless it will not deploy the right persons at the right time and that too at the right place in the
organisation (Martínez and del Bosque, 2015). Cafe Royal Hotel is performing its operations in
the best way by the score of, it has deployed the right persons at the right place. The organisation
is performing its operational functions in the best way because it's having these departments in
its team.
Operational Department Functional Departmen
 Executives:- These are the decision
makers within the organisation. The
persons working ion this department
could be the department heads;
managers or the directors. It all depends
on the working of the organisation and
its size. The executives may be
responsible for the areas of their work
along with the other functional areas of
work that include:- accounting;
marketing and at times even the front
desk services (Martínez and del
Bosque, 2015).
 Accounting:- In every business,
accounting plays a very crucial role in
maintaining the books and journals. It
helps the businessman, to keep a track
on the performance of the business
along with the expenses that are being
incurred in the business unnecessarily
(Bowie and et.al., 2016). Keep a track
 Front Desk Services:- Although no
operational segment is there within a
hotel organisation which is required to
be dispensed by the top level
management. It has been argued that a
very little part will be done if the front
office staff members would not be
there. These are such people that are
directly, in contact with the guests that
arrive in the hotels and not only this,
might also be responsible for looking
and handling the books of accounts
(Molz, 2018).
 House Keeping:- This is such a
department, which is responsible for
keeping and maintaining the cleanliness
in the rooms that are allotted to the
guests. It is undoubtedly an essential
task. The team and staff shouldering the
responsibility for such department is
typically responsible for the complete
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on the expenses and the revenue helps
to identify the weakest pulse of the
business and gives the business person
a chance to make tweaks and necessary
adjustments as when necessary
(Köseoglu and et.al., 2018). The
accounting team is directly answerable
to the executive team and the board
members and is also responsible for
providing them with the relevant data
and forecasts.
details of the room, from keeping the
toiletries stocked to the cleanliness of
the bed sheets (Arsyad and Rosyidin,
2015).
 Maintenance:- The best quality utilities
and the electronics can break and
malfunctioning can take place. In
today's changing scenario and the
technology oriented world, there is
something more to repair and fix in
respect of computers, TV screens,
gaming zones, DVD players and other
cutting edge in the technology items
than before (Bowie and et.al., 2016).
Sometimes it can be the responsibility
of the executives and the manager
personnels to be at the front desk
services and it all depends on what type
of work is best suited for the
organisation. In some cases, the
maintenance might be skipped in with
the services like housekeeping or
performing any other role.
 Marketing And Sales:- Every business
requires promotion. Marketing is such a
department in the organisation that
keeps on making its effort in respect of
promoting the products and services of
the organisation with the motive of
making the organisation to attain its
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desired objective sand growth in the
hospitality industry (Michael, 2017).
The marketing team must be up to date
with the latest marketing channels and
practices and so on.
Cafe Royal Hotel is exercising the same and the departments are going good in their
performance (Bretherton, 2017).
P.3. Contribution Of The Hospitality To All The Economies
Local Economy
The economy of UK has boosted like anything. Contribution of the hospitality industry in the
economy of UK has grown more quickly than, that of nay other sector. Hospitality in Britain is
the fourth largest employer, accounting for 3.2 million direct jobs and a further 2.8 million
indirect jobs (Wu and et.al., 2017). The Gross Value Added by Hospitality, has increased in the
economic value from the production of the goods and services by 5.9% and it is almost double to
that of economy as a whole.
Regional Economy
Productivity of labour in this sector has grown at more than double the rate of the overall
economy since,2008 (Ladkin and Buhalis, 2016). The hospitality and the tourism sector has
brought 73 billion pounds to the economy just last year only. It also includes the indirect impact,
that includes 15 Billion pounds in exports and 38 billion pounds in the direct tax receipts (Lui,
2015.).
Global Economy
However, it also showed that the outlook of the growth was “highly uncertain, by the
score of pressure of falling real living standards, implementation of the national living wages;
increase in business rates and finally there is lack of potential labour” (Bowie and et.al., 2016).
The Tourism and hospitality industry seems to be going through an economic gloom. Not only
the tourists have become choosy and cost saver in terms of their choices and demands, but, an
array of new destinations seemed to have sprouted in this increasingly interconnected world
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(Köseoglu and et.al., 2018). Technological advancements have played a huge role with the travel
and is becoming increasingly more accessible (Michael, 2017). This is having a major role in the
development of economy. Growth in the hospitality industry is being driven by the latest trends
in the travel and tourism industry (Bowie and et.al., 2016).
In terms of employment, Hospitality industry is arising as a one of the most dynamic
industry in giving employment to the people in the UK (Bretherton, 2017). The industry offers a
wide and varied scope in the respect of career progression. When the potential candidates are
applying for job in the hospitality industry, the economy of the nation will grow and will prove
to be a useful tool for improving the effectiveness and working criteria of the employees (Wu
and et.al., 2017). The Hospitality sector in Europe is an important contributor to the European
economy, and is having a crucial impact on employment, growth and tax contributions (Lui,
2015). Hospitality sector directly employs 10.2 m people in Europe . Turnover, across the
hospitality sector is over 1.0 tn Euro and it is approximately 8.1% of total economic output. The
hospitality sector support around 16.6 million jobs, that represent 7.8% of the European
workforce or one in every 13 jobs in Europe. It directly, employs the workers in the enterprise by
operating in the hospitality sector (Martínez and del Bosque, 2015).
Hospitality sector is having a key role, in supporting not just the economic aims but also
social objectives through support of rural and regional economies (Lui, 2015). The significance
of this varies across the countries, there are a number of divides between the rural and the urban
prosperity in the European nations and this is the reason, the contribution of the hospitality
enterprise is really significant/appreciable (Ladkin and Buhalis, 2016). Now, additional sectors
that are linked to a successful and thriving hospitality sector includes:- transportation; tourism;
culture; construction and brewing. As a direct employer, hospitality sector plays a fundamental
role in supporting job creation across Europe.
LO.2
P.4. Investigation Of Range Of Different Operational Roles
In hospitality industry, there are different roles in the Operational Department that are to
be performed by different managers that are working in the hospitality and service industry in
Cafe Royal Hotel (Arsyad and Rosyidin, 2015). Different Operational roles are:-
Departments Interrelationship
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Marketing And Finance Both these departments are interlinked with each other, by the
score of marketing helps the hotel in becoming popular in the
service industry and without finance department it is not
possible (Arsyad and Rosyidin, 2015).
Finance And HR Human Resource Department plays a very important role in
hiring the candidates for the purpose of making the functioning
of organisation smoothly and finance is required to make this
process easy. (Arsyad and Rosyidin, 2015).
Research And Development
And Marketing
Both these departments are interlinked with each other because
on one side where research and development helps a firm in
establishing its market in the areas where it seems to be
challenging. Marketing provide information and use of new
technology (Martínez and del Bosque, 2015).
Finance And Accounting Both these departments are interrelated to each other because,
on one hand, finance helps in providing the funds to the other
department and accounting helps in keeping a record of all the
transactions of a firm (Lui, 2015).
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Skill Gaps And Shortage:- The organisation should give a proper training to its employees in the
respect of all those skills that are required to perform the necessary functions in the respected
departments. The organisation should give training to the employees of the finance department
regarding the what type of expense sis required to be taken care of at first and finally in respect
of suggestions that they should give the organisation with the motive of having a rein on the
unnecessary expense of the funds.
Six different employment roles in the operational departments of hospitality organisations are:-
 Hotel Operations Manager:- It includes different types of the operational departments that
are involved in the functioning of a hotel, resort or lodge. The manager of the hotel
ensures that the everyday aspect of the operations in the hotel industry takes place within
a given time frame and that also within a specified and allotted budget for those activities.
The staff is being managed by them and according to the assigned task the budget is
allotted and other activities takes place. The hotel manager is completely and solely
responsible for the day to day decision making of the departments that they are handling.
Shortage:- Candidates hired are not having knowledge in the respect of function of hotel
manager.
 Event Planning Or Coordinating:- An event planner is the person, which is being hired by
the manager of the hotel with the motive of getting assistance for conceptualizing,
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Illustration 1: Organisational Chart

planning and executing the complete event on the behalf of the manager. The event
planners often come up with some creative ideas and concepts for decor; space and food.
It helps the hotel manager in securing the best price for the arrangement or flowers and
furnitures; lighting and other items with the vendors and the suppliers. Here, the role of
the role of the event manager is to create a coordination with the other persons who are
responsible for playing the DJ and finally to oversee the complete process from legal to
financial and every thing in between.
Shortage:- The candidate hired for the event planning is not having complete knowledge of this
field so should be given training in that respect.
 Chef Or Culinary Expert:- This expert or specialist is required for completed
understanding and technical know how of safety rules and regulations of the food items.
He plays the role of captain in the kitchen area. These type of persons are having a basic
understanding of the cooking style and techniques that are taught regarding how to
prepare the meals for the restaurant.
Shortage:- There are numerous candidates in the market, that are not having a proper skill and
knowledge of this field. Cafe Royal Hotel should keep complete focus on the hiring of skilled
candidate.
The skills required for performing of such type of operational role in the hospitality
department are as follows:-
If the person would not be having knowledge in the respect of cooking the meals for the guests,
arriving in the hotel, then, he would not be bale top prepare the delicious meals and along with
this would not be able to perform any function regarding the cooking. Then, ion such case, hiring
of such candidate would be like wastage of time and exploitation of the useful resources ion an
unskilled person. So, its a requisite if having a basic knowledge of a particular field. Cafe Royal
Hotel is focusing on the hiring of such candidates only that are very skilled and having complete
knowledge.
CONCLUSION
The report is focusing on the travel organisation Cafe Royal Hotel. It lays its complete
focus on the different types of business in the hospitality industry and the diverse products and
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services that are offered by them. The assignment further lays emphasis on the range of
operational and functional departments in the organisation and their way of working in the
organisation - Cafe Royal Hotel Then, the report lays its focus on the contribution of the
hospitality industry to the local; national; and international economies. The assignment further
focus on the skills of the employees that are required for the completion and performing of
assigned tasks in the manner which is required.
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