The Contemporary Hospitality Industry: A Business Report

This report provides a comprehensive analysis of the contemporary hospitality industry. It begins by describing the range of products and services offered, including food and beverages, tourism, lodging, and entertainment. The report then analyzes different types of operational and functional departments, such as front office, housekeeping, human resources, and accounting. It elaborates on the hospitality industry's contribution to local, national, and international economies, highlighting its role in GDP and employment. The report discusses the relationships between various operational and functional departments, such as marketing and food and beverages, purchase and housekeeping, and accounts and front office. It also examines the influence of licensing and franchising on the industry's worldwide development, including their impact on global growth and economic worth. Furthermore, the report describes different roles within operational departments, such as housekeeping staff, waiters, and executive chefs, and examines the skills required for these roles, along with current skills shortages. Finally, it analyzes the impact of skills gaps on hospitality businesses and proposes solutions for addressing these gaps, concluding with a discussion on the industry's future.

The contemporary
hospitality industry.

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................4
Describe the range of products and services that the businesses in hospitality industry offers.
...................................................................................................................................................4
Analyse different types of operational and functional department in hospitality sector..........4
Elaborate the contribution that the hospitality industry has on local, national and
international economy...............................................................................................................5
Discuss relationship between operational and functional departments within hospitality
industry.....................................................................................................................................5
Determine the reason how licensing and franchising are influencing worldwide development
of hospitality industry...............................................................................................................6
Explain how global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry..............................................................................7
Describe the different kinds of roles within operational department of hospitality industry.. .7
Examine the skills required for roles within the hospitality industry and current skills
shortages...................................................................................................................................7
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles........................................................................................................................8
Analyse the impact that skills gaps have on hospitality businesses and make valid solutions
for addressing these skills gaps.................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry is one of the largest industry and provide significant amount of GDP to the
economy. Hospitality industry plays an important role in the growth of the country and also in
the tourism sectors (Altin and et. al., 2018.). Hospitality industry provide a huge amount of
employment to skilled as well as unskilled people which helps the government to reduce
unemployment rates and also helps the society in increasing the purchasing power of the
consumer. It helps in increasing the standard of living of general people. In context to The Ned
hotel, it is a collection of restaurants, roof terrace, business center, swimming pools, spa, gym
and many other amenities. It is a five star hotel and is situated in the city of London. The hotel
was founded in the year 2017 by Soho House & Co. And New York’s Sydell Group. Both the
companies have joined their forces in order to create The Ned which includes 10 restaurants and
250 bedrooms available for the guests.
MAIN BODY
Describe the range of products and services that the businesses in hospitality industry offers.
Hospitality industry provide a wide variety of products and services to their guests as the main
aim of the industry is to provide excellent experience to their customers and can provide the
satisfaction up to the level of expectations. The customer wishes to get experience that worth
every penny they have spend on the stay and to get that expected experience. In context to The
Ned hotel, they are providing best in class services to their customers as they believe that the
satisfaction of customers are their main goal.
Food and beverages: This is the largest segment in the all four segments of hospitality industry.
The segment is big because of the contribution of restaurant chains and cafes. This segment
provide food facility to the guest (Bangwal, D. and Tiwari, P., 2019.). They provide large variety
of food and beverages to the customers according to the demands. The thing that matters the
most is the taste and quality of food that is provided to the customer. In context to The Ned
Hotel, they make sure that the food served to their guests are fresh, hygienic and tasty. The
company itself own ten restaurants within the hotel which are serving guests.
Tourism and travel: This segment of the industry provides travelling and transportation
facilities to its customers. This segment works according to the requirements of the customer. It

includes travelling from buses, trains, cars or flights. They make sure that the customer as a
comfortable experience.
Lodging: This segment provides space to customers to rest during their journeys. The
companies in this segment provide accommodation facilities to its customers and make sure that
they find it comfortable (Bharwani and et. al., 2019.). It includes family hotels, motels, luxury
hotels, affordable hotels, etc. The category can depend up on the interest of the customer.
Entertainment: This segment refers to the refreshment center for the mind and body of the
customer. This is a set of activities that are provided to the customers in order to provide them
above expectation satisfaction and to give them extraordinary or delightful experience.
Analyse different types of operational and functional department in hospitality sector.
Functional department
Human resource department: This department of the company is responsible for appointing
talented people as the staff of the hotel. They need to make sure that the company has right staff
and are having a pool of talent which can be used as and when needed.
Account department: This department is responsible for the books of account of the company.
The company has to register each and every transaction that has taken place in the entity in order
to create financial records (Bittendorfer and et. al., 2019.). This department look at each and
every transactions related to the money of the hotel.
Operational department
Front office department: This department of the company comes in direct contact with the
customer. The responsibility of this department is to solve each and every query of the guests,
provide information that they ask for, check in check out management and fulfilling any special
request of the guests.
House keeping department: This department of the hotel is responsible for the room cleanliness,
room decor, service provided to the guests, any special request regarding room are fulfilled by
this department. This department makes sure that the guests have a comfortable experience of
their stay and does not have to face any problem (Boo, S. and Kim, S.H., 2020.). This
department is also responsible for the decoration of front hall and lobby.

Elaborate the contribution that the hospitality industry has on local, national and international
economy.
The hospitality industry is one of the largest industry and are providing maximum benefit to the
economy. The hospitality industry is contributing more than 4% of GDP in the economy which is
helpful in increasing the economic performance of a country. Not only this but hospitality
industry is also providing large number of employment to the people of the country in which
they are working (Chen, H.S. and Fiscus, J., 2018.). Hospitality industry requires both skilled
and unskilled labour which also makes the unemployment rates of the respective country low.
Hospitality industry allows the people of the country to increase their standard of living by
giving them more purchasing power which is beneficial for the economy.
Discuss relationship between operational and functional departments within hospitality industry.
Marketing department and food and beverages department: As The Ned Hotel is extremely
famous for their food and their restaurants, the marketing department of the company uses this
method to promote their hotel and plan their marketing efforts and plan according to the food and
beverages department of the company. The marketing team of the company organizes various
brunch and dinner activities for the customers of the hotel in order to create a good impression
and to increase and enhance the reputation of the hotel. Some of the campaigns related to the
food and beverages of the hotel are specially for the royal customers of the hotel which will help
them in spreading a good word of mouth about the hotel
Purchase department and housekeeping department: Both the departments work hand in
hand as the housekeeping department requires large amount of inventory on daily basis and
purchasing of that order is responsibility of purchase department (Cherapanukorn, V., 2019,
November.). The purchase department helps the housekeeping department in stocking
appropriate resources and make purchases as and when the time comes. As the housekeeping
department serves directly to the guests, it is important for them to manage the inventory
efficiently and effectively.
Accounts department and front office department: The front office department collects the
payments from the customers and the account department is responsible for all the transactions
that has taken place in the hotel in order to create books of account. The record of financial
books is important for the company as according to those books the financial stability and

profitability of the company is decided. A night auditor is appointed by the hotel who can work
as an employee of front office and can also record the daily transactions.
Determine the reason how licensing and franchising are influencing worldwide development of
hospitality industry.
These are the expansion methods that the company can use in order to make sure that the
company will be able to survive in the foreign market and product and services of the company
will be able to capture market. This method is majorly used because of low investment and high
returns. In licensing method, the government will provide license to the company to start a
business in the domestic market of the country (Farrington and et. al., 2018.). By this license the
government allows the hotel to use industrial property, infrastructure and make contracts with
domestic traders. Another method is franchising, this method allows owner of the company to
provide rights of doing business to third person and using the products and services of the brand
in return of some fixed amount. It is a great method to look for the potential of foreign market
without any investment.
Explain how global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry
Both the methods have contributed significantly in the growth of the economy as both the
methods are for the expansion of the hotels. It will make the brand global and will provide
different platforms to the hotel. The hotel will be able to attract more customers and will also
adopt the upgraded technology of the country in which they are working ( García-Cabrera and et.
al., 2018.). Licensing will enable the hotel to use the property and infrastructure of the foreign
country and franchising will enable the hotel the capture the foreign market without any
investment. Both the methods will increase the business of the hotel which is ultimately
beneficial for the economy and its growth.
Describe the different kinds of roles within operational department of hospitality industry.
House keeping: The role of housekeeping staff is to make sure that the rooms that is available in
the hotel for the guests are properly maintained, clean and hygienic . It is the responsibility of
housekeeping department to serve to the customers according to their needs and demands and
make sure to provide best in class services to the customers.

Waiter: This are the roles that are responsible for serving the guests in the restaurants and
provide them all the food items that are requested by them. They are the link between the kitchen
staff and the guest of restaurant (Griffin, W.C., 2020.). They play a major role in providing
correct order on correct table. In context to The Ned Hotel, they have ten restaurants of their own
and are serving to the guests with food that is hygienic and fresh.
Executive chef: These are the people who are responsibly for the management of the kitchen
and its staff. They have the responsibility to serve hot, fresh and optimum quality food on the
table of the guests. They are the best in their field as the taste of the food should be extraordinary
in order to make the guest’s experience delightful.
Examine the skills required for roles within the hospitality industry and current skills shortages
Skills required
Work ethics: The skill that is most important in not only hospitality industry but in each and
every industry is the skill of work ethics. The employee of the company must have proper work
ethics and should do work with honesty as this industry majorly provided services which requires
best efforts.
Customer service skill: This skill is utmost important as the base of hospitality industry is to
provide best in class services to their customers and enhance the experience of the customers. It
will help the hotel in retaining customers and creating a loyal customer base.
Shortage of skills
Multi tasking skills: These are the skills that are required in the hospitality industry but are not
present in majority of the candidates. This skill requires knowledge and practise. A multi tasking
individual will be able to handle dynamic situations arising in the hospitality industry and will be
able to make right decision at the right point of time.
Decision making skills: The working environment of the hotel and hospitality sector is
continuously changing (Kalenjuk and et. al., 2020.). It is important for the company ad the
individuals to understand the need of decision making skills as only because of this skill the
company will have a pool of talented employees which can make decision for the benefit of the
company according to the dynamic conditions and situations of the company.

Review the skills gaps within the hospitality industry in relation to a range of different
operational roles
The most important skills that the hospitality industry demand is the communication skills and
the customer service skills. These two skills are important when the industry is a service based
industry. The unemployment rates are high and their is a huge pool of talent in the industry. The
competition for jobs in the market is very intense (Kallmuenzer, A., 2018.). The candidate needs
to essentially have these two skills in order to survive in the industry. The candidates have to
work hard in order to get expertise in these two skills so that they will be able to acquire a role in
hospitality industry.
Analyse the impact that skills gaps have on hospitality businesses and make valid solutions for
addressing these skills gaps
The skill gap is having an adverse effect on the performance of the hospitality industry. The
environment of hospitality industry is dynamic and requires strong skill sets for an individual to
survive. The skilled employees will help the business in adverse situations by making quick and
beneficial decisions (Khan and et. al., 2020.). In order to reduce this skill gap the industry needs
to provide training to the candidates who are willing to work in hospitality industry. Specific
compulsory training for specific job roles will help the candidates in developing skills that are
required for their job role. By following this solution the industry will be able to create their own
pool of talent for different roles within the industry.

CONCLUSION
From the above report it is concluded that the main aim of hospitality industry is to provide best
in class services to its customers. The hospitality industry provides a wide range of products and
services which can fulfill the needs of their customers and make them satisfied. It is also
conclude that their is large variety of roles within hospitality industry and the roles must be
fulfilled by talented and skilled employees.

REFERENCES
Books and journal
Altin and et. al., 2018. Performance measurement and management research in the hospitality
and tourism industry. International Journal of Contemporary Hospitality
Management.
Bangwal, D. and Tiwari, P., 2019. Workplace environment, employee satisfaction and intent to
stay. International Journal of Contemporary Hospitality Management.
Bharwani and et. al., 2019. Business model innovation in the Indian hospitality
industry. Worldwide Hospitality and Tourism Themes.
Bittendorfer and et. al., 2019. Technology in tourism: How voice assistants influence the
hospitality industry. ISCONTOUR, pp.328-338.
Boo, S. and Kim, S.H., 2020. The Relationship between Hospitality Industry Certification and
Course Performance across Multiple Semesters. Journal of Hospitality & Tourism
Education, 32(2), pp.112-123.
Chen, H.S. and Fiscus, J., 2018. The inhospitable vulnerability: A need for cybersecurity risk
assessment in the hospitality industry. Journal of Hospitality and Tourism
Technology.
Cherapanukorn, V., 2019, November. Antecedents of eCRM success in the hospitality industry.
In 2019 22nd International Symposium on Wireless Personal Multimedia
Communications (WPMC) (pp. 1-6). IEEE.
Farrington and et. al., 2018. Continuous improvement methodologies and practices in hospitality
and tourism. International Journal of Contemporary Hospitality Management.
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.
Griffin, W.C., 2020. Hospitality faculty: are we meeting the demands of industry?. Journal of
Teaching in Travel & Tourism, 20(4), pp.262-283.
Kalenjuk and et. al., 2020. TO SEEK ONE’S FORTUNE: LABOUR MIGRANTS FROM THE
WESTERN BALKANS IN NORWEGIAN HOSPITALITY
INDUSTRY. Turizam, 24(3).
Kallmuenzer, A., 2018. Exploring drivers of innovation in hospitality family firms. International
Journal of Contemporary Hospitality Management.
Khan and et. al., 2020. Revenue management in the tourism and hospitality industry with special
reference to Bangladesh. Tourism Marketing in Bangladesh, pp.257-270.