Contemporary Hospitality Industry: Business Analysis and Strategies

This report delves into the contemporary hospitality industry, using Whitbread Hotel as a case study. It explores various business types, operational and functional departments, and the industry's contribution to local, national, and international economies. The report investigates different operational roles, required skills, and current skill shortages. It also includes PESTEL and SWOT analyses to assess the macro-environment and internal strengths/weaknesses, and discusses the implications of current and potential trends. The report provides insights into strategic decision-making within the hospitality sector, emphasizing the importance of customer satisfaction and economic impact. It covers lodging, food and beverage, travel and tourism, and entertainment sectors, highlighting key operational roles like room division managers and receptionists, and the importance of technical, management, and communication skills. The analysis also addresses the growth of the hospitality industry and its influence on employment opportunities and economic development.

CONTEMPORARY IN
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 The different type of business in hospitality industry and the diverse products and services
they offer.....................................................................................................................................1
P2 Examine range of operational and functional departments within chosen hospitality
business.......................................................................................................................................2
P3 The contribution of hospitality industry to local, national and international economies.......3
P4 Investigate a range of different operational roles within the hospitality industry.................4
P5 The skills required for roles within the hospitality industry and current skills shortages.....5
TASK 3 ...........................................................................................................................................5
P6 PESTEL Analysis of hospitality industry..............................................................................5
P7 Undertake a SWOT analysis for hospitality business............................................................7
TASK 4 ...........................................................................................................................................8
P8 The implication of current and potential trend in the hospitality industry............................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is the fast growing industry all over the world which majorly works
with the motive of satisfying demand of its customer's. In hospitality industry large number of
customer's are served on daily basis. It also include various services such as transportation,
lodging and travel & tourism. This report is majorly concerned with exhibition venue which was
organised for the encouragement of school leavers. So that they can consider hospitality industry
as a good career option. The hotel chosen for this report is Whitbread which is one of the best
hotel of UK. Major topics covered in this report are various kinds of business in a particular
industry and the diverse products they offer(Anderson and Xie, 2010). Contribution of this
industry in local, national and international economies and the skills required for hospitality
industry will also be discussed Brierly. With the help of PESTEL and SWOT analysis
organisations in the hospitality industry will be able to take vital declensions in the efficient
manner.
TASK 1
P1 The different type of business in hospitality industry and the diverse products and services
they offer.
Hospitality industry is very much essential for the overall growth and development of the
country in which its operating its business. This is generally done by attracting large number of
customer's and increasing their satisfaction level. Hospitality industry majorly works for
fulfilling the need and desire of travellers. Different kind of business which are associated with
hospitality industry are mentioned below-
Lodging accommodation- This sector is concerned with providing luxury services to
customer's. These include- resorts, hotels, etc. these not only provide accommodation services
but also aims at giving high quality of food and other services to its customer's. The services of
this type of sector mainly cover food and lodging facilities for satisfying unlimited need of
customer's. Major focus is done on increasing its size, scope and profitability in the efficient
manner(Blomme, Van Rheede and Tromp, 2010).
Food and Beverage- It majorly works for fulfilling the food related need and demand of visitors
and travellers. This sector is divided into different categories some among them are mentioned
below-
1

 Quick service establishment- In this quick and rapid services are offered which includes
snacks and meals. It is also known as fast food cuisine because it provide nominal table
services.
 Catering business- In this food and other services are offered to customer's only on
special occasion such as parties, anniversary or any other kind of celebration.
 Full service restaurants- These type of restaurants offer fine dining facilities to its
customer's which customer's have wide range of options related to food and beverage.
Table services are offered to customer's as per their demand so that their overall
experience is increased.
Travel and tourism – The size of this type of sector is very wide because it covers airlines,
cruise ships, marine trips, etc. This type of sector provides travel and accommodation services to
its potential customer's(Buhalis and Crotts, 2013).
Entertainment- This sector aims at providing maximum satisfaction to its customer's by
providing them various kinds of games and sports.
Time share- This type of sector includes villas and resorts in which customer's come for
spending their quality time. In this customer's generally make prior bookings with the motive of
spending leisure time.
P2 Examine range of operational and functional departments within chosen hospitality business.
Every organisation in hospitality industry comprises of various kinds of departments
which works for increasing the satisfaction level and also for achieving targeted goals. In
hospitality industry there are also different kinds of departments which works together in the
coordinated and systematic manner. With the help of these departments Whitbread is able to
attract large number of customer's within limited period of time. Different departments of
Whitbread are discussed below-
Operational department- This department is Whitbread is related with controlling,
managing and designing the activities and operations of the organisation(Bowie and et. al.,
2016). This department include-
 Front office- The work of this department is to interact with visitors and guest for
knowing their actual need and demand. Queries and problems of travellers in Whitbread
are also solved by front office department. This department consist of reservation and
reception desk, cashier, etc.
2

 Housekeeping – This department focuses on cleaning and maintaining the premises and
rooms of Whitbread. They ensure that each and every part of hotel is clean so that visitors
experience is increased.
Functional department- This department comprises of human resource , finance etc. Major task
of this department is to perform its functions and strategies in the ethical manner, so that
profitability of Whitbread is increased(Gomezelj, 2016).
 Finance department- The work of this department is to handle the income and expenses
of Whitbread in effective manner. Plans and strategies for the expenditure are made to
increase the stability of hotel in the market.
 Human resource department- Major work of this department is to hire and trained the
employee of Whitbread so that they can contribute in the success of hotel.
In Whitbread hierarchical structure is followed so that work is completed in the effective and
efficient manner. In hotel tasks are allotted to the individuals according to there skills and
knowledge. Every department of Whitbread are inter- related with each other like the marketing
department gathers information regarding the taste and likes of customer's. This information is
passed on to other departments so that plans are made according to the results.
P3 The contribution of hospitality industry to local, national and international economies.
The major aim of every organisation in hospitality industry is to increase its market share
and to attract more and more customer's. Changes in the working structure of hotel are made
according to the current situation and demand of potential customer's. The growth and
productivity of hospitality industry directly impacts the local, international and regional
economy. Its major positive and negative impact are mentioned below-
Local economy- If the need and demand of customer's are satisfied than local economy
will have a direct and positive impact. The hospitality industry of UK aims at encouraging and
convincing the customer's to spend more, so that their overall experience its increased. The
impact of this type of industry is very much high and positive on local economy(Henrichs and et.
al., 2010).
International economy- There are many organisations which are offering its business in
various parts of the world. The travellers and visitors of UK has directly resulted in 10 percent
growth at the national and international level. This is also lead to increase in employment
3

opportunities and living standard of individuals. This industry has also led positive impact at the
international level.
National level- Hospitality industry is the third largest growing industry at the national
level. This industry is able to provide various kinds of employment opportunities to the
individuals of UK. As per the report approximately 3 million job opportunities are offered by the
hospitality industry of UK. Due to this economy of UK is growing at the rapid stage.
With the increase in growth and demand of hospitality industry many food chain company's such
as Mc Donald's, Pizza Hut, etc. are continuously focusing on establishing their outlets by using
licensing and franchising facility. These fast food chain organisations has also increased the
chances of employment in various parts of UK(Issa, Chang and Issa, 2010).
P4 Investigate a range of different operational roles within the hospitality industry.
Different departments of organisations in hospitality industry aims at controlling the work in the
effective and efficient manner. Each individual working in organisation of hospitality industry
has certain type of roles and responsibilities. These includes housekeeping, engineers, managers,
etc. Each individual focuses on completing the assigned task in the appropriate manner. The
major operational role in the organisations of hospitality industry are as follows-
Role of room division manager- The role of this manager is to manage and guide other
employee who are working in housekeeping department of Whitbread. Division manager is also
supposed to coordinate with other departments so that need and demand of customer's are
fulfilled in the appropriate manner. Problems of visitors are known by the front office
department and revenant information is transferred to division manager so that better relations
are formed with the visitors(Janta and et. al., 2011).
Role of receptionist- The work of receptionist is to record information of visitors and
travellers. Information is related with reservation of rooms, check in and check out date of
visitors, etc. Receptionist of Whitbread also aims at gathering information from the
housekeeping department related to the cleanliness of room. This means if the rooms are cleaned
by housekeeping department than it its offered to visitor by receptionist. Queries and problems of
customer's are also solved by the receptionist so that their overall experience is increased.
Role of housekeeping- This department aims at proving clean and hygienic environment
to visitors. If customer's are offered clean rooms by the housekeeping department than brand
image and profitability of hotel will be directly increased(Kim, Vogt and Knutson, 2015).
4

P5 The skills required for roles within the hospitality industry and current skills shortages.
Every individual working in hospitality industry must have certain type of skills and
capabilities so that they are able to complete the task in appropriate manner. The major skills
which are required by the employee's of hospitality industry are mentioned below-
Technical skills- These type of skills are very much essential in as it helps in completing
the task in the efficient manner. Every organisation in this type of industry is focusing on
providing training to each and every employee's so that they are able to serve the customer's
better. Receptionist of Whitbread must have this type of skill because they are supposed to
handle technical machines and equipments which include- scanner, printer, etc. If these skills are
not used in the appropriate manner than customer's and visitors might not be satisfied.
Management skills- This skills is concerned with managing the complex task of
Whitbread in the effective and efficient manner. Employee's with these skills aims at completing
the assigned task within prescribed time frame. In this resources of the hotel are also used in
systematic manner and plans are made for providing better services to visitors. The room
division manager must have this type of skill because they are supposed to coordinate with front
office department(Lynch and et. al, 2011).
Communication skill- The employee's of Whitbread must have good communication
skill so that problems and demands of customer's are solved in the appropriate manner. With the
help of communication skill work of each and every department in Whitbread will be carried out
without any problem or hindrance. For example housekeeping department will communicate
with the front office department regarding the cleaning of room.
There are various kinds of services offered by the every departments of the organisation of
hospitality industry. But the motive of every department is to enhance the satisfaction level of its
customer's so that its brand image and profitability is increased.
TASK 3
P6 PESTEL Analysis of hospitality industry.
Analysis of macro environment is necessary for the organisations in hospitality industry. As with
the help of this analysis strategies can be made for the future action plan. With the help of
PESTEL analysis organisation will be able to decrease the competition level within limited
period of time. Various factors of PESTEL analysis are as follows-
5

Political factor- It is concerned with stability and policies of the government of a
particular country. The VAT rate in UK is stable from past many years and due to this
organisations are able to operate its business activities in the proper manner. It is proving as
positive sign for hospitality industry(Menet, 2016). While in some countries the rate is
continuously fluctuating and due to organisations in this industry need to make changes so that
negative impact can be decreased.
Economical factor- It is related with per capita income, inflation and deflation rate of the
economy. After the introduction of Brexit in the economy of UK the functions of various
organisations of hospitality industry is negatively getting affected. The competition level in this
type of industry is very high so it become essential for the organisations to make plans for
reducing negative impact of Brexit.
Social factor- It is related with preferences, belief and values of customer's which
directly affects the performance of organisations in hospitality industry. Customer's demand is
uncertain which lays a negative impact on the functioning of Whitbread(Myung, McClaren and
Li, 2012). To reduce adverse impact of this factor various training programmes can be arranged
for the employee's. So that they are able to meet the demand of customer's in the systematic
manner.
Technological factor- Hospitality industry required use of latest tools and techniques for
competing the task in the efficient manner. Latest technology are used in Whitbread so that their
satisfaction level is enhanced. Online booking facility is introduced for its customer's and various
discount coupons are offered to them. The major motive behind this is to reduce the chances of
negative impact of this factor on the functioning of organisations in hospitality industry. If the
hotels are able to make best use of latest technology than its sale and productivity will be directly
increased.
Environmental factor- It is related with protection and conservation of natural resources
by using laws in the systematic manner. To reduce the negative impact of this factor
organisations are aiming at establishing green parks. Healthy atmosphere is created within the
premises of Whitbread so that customer have good experience while visiting the hotel.
Legal factor- This factor is related with laws and regulations of a particular country. The
organisations needs to plan its operations according to the laws so that its working its not
affected. With the help of certain laws and regulations motivation level of the employee's can be
6

increased because it will create sense of belongingness among them. As there need and demands
will be taken into consideration(Van den Steen and et. al., 2015).
P7 Undertake a SWOT analysis for hospitality business.
SWOT analysis is very essential for various organisations which are operating its
business in UK. As with the help of this strength , weakness and opportunities can be known in
the efficient manner. SWOT analysis will lead to using the available opportunities for attaining
competitive position in the market for a longer period of time. Various factors of SWOT analysis
related to Whitbread is discussed below-
Strengths Weakness
 The price of the services offered by the
hotel is according to the paying
capacity of customer's. Due to this
Whitbread is able to create wide
customer base.
 Different kind of discount coupons are
offered to the customer's. This is led to
creation of loyalty among potential
customer's.
 The rooms of Whitbread are not in
good condition due to this customer's
are not satisfied.
 Demand of large size families are not
fulfilled by hotel because its rooms are
small in size.
Threats Opportunities
 Hilton, Travelogue and Marriott are
the top competitors of the hotel. This is
affecting the sale and profitability of
Whitbread.
 The need and demand of customer's in
this type of industry is unlimited and
ever-changing. Due to this growth of
the organisation is getting affected in
the negative manner.
 Whitbread has wide range of
opportunity to introduce its business in
different parts of Europe.
 The organisation can make plans for
coming into partnership with other
hotels, so that its market share is
increased.
7

With the help of this analysis management of Whitbread will be able to vital decisions regarding
the operations and strategies. Negative impact of decrease in customer's base will be reduced
because appropriate solution of the problem can be drawn.
TASK 4
P8 The implication of current and potential trend in the hospitality industry.
Trends helps the organisations to achieve its targeted goals and objectives in the best
possible manner. Some of the current and potential trend in the hospitality industry is mentioned
below-
Current Trend
Internet services- It is the latest trend which is going on in the hospitality industry. The
major motive of this trend is to provide adequate information to the customer's related to the
hotel in which they are planning to spend their leisure time.
Tech explosion- Customer's are demanding better services with affordable prices. But
they do not like to disturb the employees of hotel for fulfilling their demands. So latest
technology can be launched in which best use of technology can be done in a friendly manner.
Future Trend
Direct Booking- Inter- Whitbread can launch online booking facility for its customer's.
As with the help of this they can book rooms in the hotel according to their need and
convenience without wasting time(Yoo and Bai,2013).
Tracking facility- This technology aims at tracking the location of visitors or tourist.
With the help of this technology large number of visitors can be attracted.
If the motive of Whitbread is to increase its sale and profitability than some changes in
the use of tools and techniques and working environment can be done. As with the help of this
hotel will be able to sustain in the market for longer period of time. The changes can be training
and development programmes can be arranged for workforce. As with the help of this best use of
resources and latest trend can be made.
CONCLUSION
From the above given report it has been concluded that there are various trends which
must be taken into consideration by the hospitality industry for achieving the goals in the
effective manner. There are also various kinds of opportunities available in the market which can
8

directly lead to increase in sustainability of hospitality industry. PESTEL and SWOT analysis
can be conducted by industry for analysing the external environment in the systematic manner.
With the help of this analysis better plans can be made for the giving tough competition to the
competitors which are operating their business in same type of industry.
9

REFERENCES
Books and Journals
Anderson, C.K. and Xie, X., 2010. Improving hospitality industry sales: Twenty-five years of
revenue management. Cornell Hospitality Quarterly. 51(1). pp.53-67.
Blomme, R.J., Van Rheede, A. and Tromp, D.M., 2010. Work-family conflict as a cause for
turnover intentions in the hospitality industry. Tourism and Hospitality Research.
10(4). pp.269-285.
Bowie, D., and et. al., 2016. Hospitality marketing. Routledge.
Buhalis, D. and Crotts, J., 2013. Global alliances in tourism and hospitality management.
Routledge.
Gomezelj, D.O., 2016. A systematic review of research on innovation in hospitality and tourism.
International Journal of Contemporary Hospitality Management. 28(3). pp.516-
558.
Henrichs, T., and et. al., 2010. Scenario development and analysis for forward-looking
ecosystem assessments. Ecosystems and human well-being: A manual for
assessment practitioners, pp.151-219.
Issa, T., Chang, V. and Issa, T., 2010. Sustainable business strategies and PESTEL framework.
GSTF International Journal on Computing. 1(1). pp.73-80.
Janta, H., and et. al., 2011. Employment experiences of Polish migrant workers in the UK
hospitality sector. Tourism Management. 32(5). pp.1006-1019.
Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction,
delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism
Research. 39(2). pp.170-197.
Lynch, P., and et. al, 2011. Theorizing hospitality. Hospitality & Society. 1(1). pp.3-24.
Menet, G., 2016. The importance of strategic management in international business: Expansion
of the PESTEL method. International Business and Global Economy. 35(2).
pp.261-270.
Molz, J.G., 2016. Cosmopolitans on the Couch: Mobile Hospitality and the Internet 1. In
Mobilizing Hospitality (pp. 65-80). Routledge.
Myung, E., McClaren, A. and Li, L., 2012. Environmentally related research in scholarly
hospitality journals: Current status and future opportunities. International Journal
of Hospitality Management. 31(4). pp.1264-1275.
Van den Steen, S., and et. al., 2015, March. Micro-architecture independent analytical processor
performance and power modeling. In 2015 IEEE international symposium on
performance analysis of systems and software (ISPASS) (pp. 32-41). IEEE.
Yoo, M. and Bai, B., 2013. Customer loyalty marketing research: A comparative approach
between hospitality and business journals. International Journal of Hospitality
Management. 33. pp.166-177.
Online
ECONOMIC CONTRIBUTION OF THE UK HOSPITALITY INDUSTRY, 2018. [Online].
Available through: <https://www.ukhospitality.org.uk/>.
10

Hospitality Industry Pestle Analysis. 2018. [Online]. Available through:
<https://www.cheshnotes.com/2017/03/hospitality-industry-pestel-analysis/>.
11