An In-depth Report on the Contemporary Hospitality Industry

This report provides a comprehensive overview of the contemporary hospitality industry, examining various aspects such as the different types of businesses within the industry, including hotels, restaurants, and tourism. It delves into the operational and functional departments of a chosen hospitality business, The Balmoral Hotel, and their interrelationships. The report explores the hospitality industry's significant contribution to local, national, and international economies, highlighting the impact of global growth, franchising, and licensing agreements. It identifies a range of operational roles within the industry and assesses the skills required for these roles, including interpersonal skills, coordination, and customer service. Furthermore, the report addresses current skills shortages and their impact on hospitality businesses, emphasizing the need for adaptability, critical thinking, and cultural sensitivity. The report underscores the importance of service quality, employee training, and the use of technology in meeting customer expectations and ensuring the industry's continued growth and success.

CONTEMPORARY
HOSPITALITY
INDUSTRY

Contents
INTRODUCTION.......................................................................................................................................3
MAINBODY...............................................................................................................................................3
A range of operational and functional departments within a chosen hospitality business........................4
Contribution of the hospitality industry to local, national and international economies..........................4
Interrelationships of the operational and functional units within hospitality business.............................5
Use of franchising and licensing agreements has influenced the global development.............................5
How global growth, franchising and licensing developments have contributed to the economic worth of
the hospitality industry............................................................................................................................6
Range of different operational roles within the hospitality industry........................................................6
The skills required for roles within the hospitality industry and current skills shortages.........................7
Skills gaps within the hospitality industry in relation to a range of different operational roles................7
Impact that skills gaps have on hospitality businesses.............................................................................8
CONCLUSION...........................................................................................................................................8
REFRENCES..............................................................................................................................................9

INTRODUCTION
This report focuses on the importance of hospitality industry in an economy and how this
industry helps economy in boosting its productivity and profitability. This report also includes
information about different businesses included in hospitality industry and how these businesses
are operated effectively to generate revenues. This report helps in understanding about different
departments inside an hospitality organization which contributes in growth and development of
hospitality organization. This report is based on The Balmoral Hotel which is a five star hotel
and it is situated in Scotland. It was founded in 1902. It is famous for its quality services offered
to its consumers and ensure consumer satisfaction with effectively engaging with consumers.
MAINBODY
Number of different types of business within the hospitality industry and the diverse
products
Service quality seems to be the connecting feature maintained by other sectors of both the hotel
sector, given the fact that it is a thriving sector with many separate classes. Its hotel sector's
many segments work together to guarantee that visitors' requirements are met holistically.
Luxury hotels, opulent villas, and campsites are all part of such a context of hotel industry.
Lodging is a large category in the hospitality business, encompassing everything including bed
and breakfasts to restaurants and other housing establishments. Throughout the economy, the
casual dining sector reigns preeminent. Could be anything from a basic café to an elevated diner,
as well as any service facility around between. Every casual dining sector is divided into
specialties, including such fast - food restaurants franchises, as one might assume. This tourism
industry is a large part of the tourism industry, with such a number of major participants all
around the world. Railways, airplanes, ocean liners, and a number of team members are all part
of their services. The tourism sector, overall, is in the sense of making information from one
point to some other. Fun and social activities of a place is a developing but hugely important area
of the hospitality business.
A range of operational and functional departments within a chosen hospitality business
When the guests have checked out, cleaning staff steam clean hotel guestrooms to make sure that
the new guests arrive to spotless bedrooms or apartments. Despite truth, their cleaning

department's primary responsibility is to guarantee that perhaps the property is kept clean and
dry. The culinary division is also known as the food manufacturing section. That is in charge of
the actual preparation of the meals. Many of the most significant employment titles throughout
this section are caterer, head chef, cook, meat cutter, and internal workings. Clients must
consume the meals provided in the kitchen and the beverages provided throughout the pub. The
retail and service department is responsible of this. Customers' initial interaction with a hotel is
the front desk employees. The whole front office staff is accountable for maintaining that
customers are greeted in a professional and courteous fashion and allotted accommodations
based on actual reservations. The venue's Human Resource (HR) department is responsible for a
variety of responsibilities. Creating occupations, creating work tasks and job specification,
promoting opportunities in relevant media, employing and training of new employees, and
terminating underperformers are just a few examples. The venue's food and beverage section is
crucial. Management and financial accounting, service delivery, invoicing and credits influence,
managing with tax issues, generating income reports.
Contribution of the hospitality industry to local, national and international economies
It's one of the largest and most important and quickest sectors. Besides 2022, it is expected to
generate 328 thousand workers and employ 10% of the employee base. This contributes
significantly to the budgets of several countries around the world in a range of methods. Most
major contribution that diverse manufacturing to a nation's infrastructure is the introduction of
new opportunities. Professional positions as tourist destinations, travel organizers and organizers,
reason of conducting, and at motels, eateries, and hotels are all accessible. Even as hospitality
and tourism industries expand, and so do other positions. Numerous associated businesses,
including the maritime industry, airplanes, and event management, also produce employment.
This sector involves income for the country. Most times, travellers invest millions on their
vacation preparations. Travel companies and people that work in the public sector make a lot of
money. Companies then put the money into the sector to help it develop even more. Furthermore
addition, money is generated with the use of multiple activities such as motels, cafés, landmarks,
as well as other tourist sites. For increase its customer base, such amenities are being enhanced
and cheaper to maintain. As a result, everyone benefits. While discovering a local location,
visitors spend more money on a variety of several other people's desires. Individuals buy things
on medications, clothing, cuisine, travel, amusement, and mementos, among other things.

Interrelationships of the operational and functional units within hospitality business
Connectivity has been used by businesses from either the beginning of time, and it is not a new
notion in the present environment. Typically, businesses utilize this technology to achieve
economies of scale that allows them to reduce operational costs. Connectivity enables businesses
to pool their money and get better outcomes. This assists the business in allocating resources
both vertically or horizontally. Businesses that integrate come closer to meeting customer
demands more efficiently and safely. People make plans to meet the requirements of the
customers. Connectivity allows businesses to achieve their objectives by allowing departments
from two separate businesses to work together to achieve their objectives. Its procurement team
is another name for the finance office. The hotel department is in charge of make sure that the
company gets access to the best skilled manpower, technology, as well as other essential
commodities at even the most affordable price in order to run effectively. Identifying and
effectively addressing client expectations are what marketing is all about. The resort's marketing
team is responsible for a variety of activities. Its advertising department's duties include doing
analysis to understand the requirements and desires of customers, designing additional services,
and running marketing and promotion efforts.
Use of franchising and licensing agreements has influenced the global development
Businesses are increasingly widespread in the hospitality industry because it allows international
businesses can profit from of the marketing potential of larger advertisers. As a result, they will
have a much broader reach than in their own capabilities could provide. This same Company
Contract is a contract that specifies how well a corporation (franchisor) appears to agree to
provide a more group (franchisee) also with particular reputation, payment systems, operational
requirements, and every other support required to power a successful service in interchange for
such a one-time reimbursement and a proportion of both the produced wealth in the form of a
regular monthly service charge. The new agreement is usually customizable and will last
anywhere from a year to that of an indefinite period of time. McDonald's, the largest global
franchise system and the best example of a manufacturer. Companies are increasingly
widespread in the hospitality industry because it allows foreign businesses to leverage first from
marketing potential of larger companies and brands. As a result, they will have a much broader
reach than their own resources could provide. By contrast, the franchisees receive counsel,

standard operating procedures (SOPs), common business finance, assistance, and protection,
because it is less prone to failures.
How global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry
Autonomously founded and controlled companies must work much harder to establish a
reputation and a leading position. Companies should also devote greater resources to
promotional activities. Franchise owners gain from a mother service that provides them with a
bigger scope, branding assets, specific business information, and advertising tools to help them
thrive. A Franchise Disclosure Statement must always be provided to possible potential
franchisees by each organization (FDD). This article outlines all of the small print regarding
initial investment, licenses, and ability to rise, supply suggestions, and the potential income
spectrum. Companies produce employment both within and outside of their areas. Workers
deliver items, deliver materials, manage depots which redistribute goods, and labor in the
industries and fields which produce the commodities are all present at each commercial area.
Franchises provide consistency to business owners as well as regularity for customers. The
normal franchised business remains operational following five years; however half of all cases
enterprises fail after the first year. Such good franchising outcomes ultimately resulted in a
favorable growth period and the establishment of a valuable sector.
Range of different operational roles within the hospitality industry
Throughout the hotel sector, a head chef is a management role that entails a deal and then behind
effort. The head chef is in charge of the new services of eateries, motels, resorts, and other food-
serving establishments. Kitchen staff, sous chefs, as well as other culinary personnel are
supervised by people in that situation. Professionals usually place every one of the menu items,
arrange the dinners, and cook in the kitchens. A motel managing director, often known as a hotel
owner, is responsible for ensuring the successful operation of a motel (or inn, lodge, or other
venue providing sleeping accommodations). Dealing with visitors, supervising personnel,
maintaining the building's budget, and so much more are all part of this job. Cleaners are in
charge of ensuring a high standard of hygiene in a motel or even other tourism establishment.
Workers wash both private guestrooms and public places. Cleaning staff in the tourism business
clean bathrooms, make houses, and store sheets, among other things. P orters are in charge of

managing passengers' luggage. Employees may deliver baggage to clients' bedrooms or transport
baggage to the entrance. Inside the hotel industry, a valet has been one of numerous care worker
professions. That role of valet is also another frequent one. Whenever guests arrive at a resort,
club, or even other location, a valet drives their vehicles.
The skills required for roles within the hospitality industry and current skills shortages
Collaboration, initiative, critical analysis, organization, guide, cultural sensitivity, adaptability,
and client service are examples of interpersonal skills which are sometimes not taught in college
but seem to be essential for successful governance. Client service abilities, as well as creative
ideas and suppleness, would come in handy countless times more. Service quality involves a
fundamental reorganization to communicating with consumers, whether meet in person or over
the telephone, especially young people today, who frequently contact with each other and via
modern advancement. For hospitality employees, coordination and having a cheerful mood are
essential. Workers that are well-organized are better at multitasking without losing track of
important duties. It is really a simple lesson to master; schedules, as example, provide an
incentive to manage critical functions bottom and that no matter what the outcome throughout a
job, people stay on track. Because companies value skills and experience above hard talents that
may be learned on the job, applicants who already have proven competence in interpersonal
skills should be at the number one spot. All who highlight skills and experience on their résumé
and demonstrate them through in or telephone interview will become the ones who obtain
appointments.
Skills gaps within the hospitality industry in relation to a range of different operational
roles
Because hotel industry's mix of heavy workload and low pay have resulted in a comparatively
high employee turnover ratio. It is indeed a challenge for long-term career progression and
lengthy development initiatives, both of which are expensive investments. High summer
requirements as well as the expectations that come with them will be also roadblocks to exposing
personnel to education. Most investments require a payback, yet most businesses are unable to
determine the value of instruction, as well as the competence required to give coaching. This
really is especially true in modest proprietor enterprises where nobody is accessible or
designated to boost customer abilities. This hotel business is likely to become stronger even as

regularity of travel when dining out has been forecast to be significantly greater by 2020,
according to worldwide consumer preferences. Like a result, quality attributes demands are
increasing, and so is the attractiveness of niche foods and one-of-a-kind eating events. While
dining out and in 2020, the increase in customer demands, particularly surrounding cleanliness,
will be far more essential than it is currently. Users are expected to be much more cost-conscious
than they should be now, demanding much more side dishes supplied domestically. It
necessitates talent modification.
Impact that skills gaps have on hospitality businesses
The majority of these jobs necessitate exceptional customer service, attention to detail,
collaboration, and decent self care. A solid awareness of local facilities and activities, and also
creative problem-solving (since tourists occasionally face unanticipated challenges), are
essential. Customer service in the hotel industry requires clear and professional communication
through speech, writing, and body language. Initiative in the hospitality industry is aggressively
changing customer requirements and carrying own entire load, but it's a skill which charms
consumers while also making work easier for all.
CONCLUSION
This part concludes about the importance of hospitality business for an economy and different
operational roles which are included in the hospitality business. This part also concludes about
the need of skills in hospitality industry in order to effectively engage with consumer and
developing new skills can contribute in growth and development of industry.
REFRENCES
BOOKS AND JOURNALS

Ali, F., and et. al., 2018. A comparative study of covariance and partial least squares based
structural equation modelling in hospitality and tourism research. International Journal of
Contemporary Hospitality Management.
Atef, T., 2018. A Tourism and Hospitality Education Management Model: The Case of the
Tourism Department of Sultan Qaboos University. Journal of Tourism and Hospitality
Management, 6(1), pp.39-54.
Elston, J. N., 2018. Management accounting in the hospitality industry: a systematic literature
review (Doctoral dissertation).
Frye, W. D., and et. al., 2020. What factors influence Generation Y’s employee retention in the
hospitality industry?: An internal marketing approach. International Journal of Hospitality
Management, 85, p.102352.
García-Cabrera, and et. al., 2018. Negative work-family/family-work spillover and well-being
across Europe in the hospitality industry: The role of perceived supervisor support. Tourism
management perspectives, 26, pp.39-48.
Kuznetsov, V. I., 2017. MODERN TENDENCIES AND PROSPECTS OF DEVELOPMENT
OF THE HOSPITALITY INDUSTRY IN RUSSIA. In WORLD SCIENCE: PROBLEMS AND
INNOVATIONS (pp. 180-182)
Line, N. D., and et. al., 2020. Control, use and ownership of big data: A reciprocal view of
customer big data value in the hospitality and tourism industry. Tourism Management, 80,
p.104106.
Masar, Đ., 2018. Key Factors Influencing Employee Retention and Motivation in the Hospitality
Industry (Doctoral dissertation, RIT Croatia.).
Nguyen, L. V., Haar, J. and Smollan, R., 2021. Exploring a hospitality leadership competency
model: Cross-cultural validation in New Zealand and Vietnam. Journal of Human Resources in
Hospitality & Tourism, pp.1-25.
Okumus, B. and Ma, F., 2019. Research trends on food safety and sanitation in hospitality and
tourism. International Journal of Bibliometrics in Business and Management, 1(3), pp.214-224.