Contemporary Hospitality Industry: Roles, Impact & Hilton Analysis

This report provides a comprehensive analysis of the contemporary hospitality industry, using Hilton Hotel as a case study. It begins by outlining different types of businesses within the hospitality sector, such as lodging, food and beverage, travel and tourism, entertainment, and timeshares, highlighting their roles in customer satisfaction and brand image. The report then details the range of operational and functional departments within a hospitality organization, including housekeeping, front desk, human resources, and finance, emphasizing their contributions to efficiency and profitability. Furthermore, it assesses the hospitality industry's significant contribution to local, national, and international economies, noting its impact on employment, GDP, and global diversity. The report also examines various operational roles within the industry, such as maintenance and executive positions, and the skills required for these roles. Finally, it applies PESTEL and SWOT analyses to evaluate the external environment and internal capabilities of the hospitality industry, and discusses current political trends affecting the sector. This detailed overview aims to guide individuals interested in pursuing careers within the hospitality industry, with specific insights into Hilton Hotel's operational structure and economic impact.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types of business.....................................................................................................1
P2 Range of operational and functional departments.................................................................2
P3 Contribution of hospitality industry to local, national and international economies ..........4
TASK 2............................................................................................................................................5
P4 Various operational roles ......................................................................................................5
P5 Skills required for roles in hospitality sector ........................................................................6
TASK 3............................................................................................................................................7
P6 PESTEL Analysis of hospitality industry .............................................................................7
P7 SWOT Analysis of hospitality industry ................................................................................8
TASK 4 ...........................................................................................................................................9
P8 Current and political trend in hospitality industry ................................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

INTRODUCTION
The hospitality industry has grown multiple folds in the last few decades and its primal
objective is to satisfy customer need and demand in order to attain high level of productivity and
profitability. Along with with, it plays a major contribution to the growth of country's economy
as it provide the enormous opportunity for employment of differing personalities, backgrounds
and skills through a wide diversity of type of outlets serving food and beverages. This report is
mainly focus on encouraging and providing proper guidance to school leavers in order to
making their career in hospitality sector (Anderson and Xie, 2010). However, for this study
Hilton Hotel is considered, which is one of the branded hotel and hospitality industry that is is
commenced in the year of 1919. In this report, it covers various kinds of business and range of
operational as well as functional departments in a hospitality industry. Moreover, its contribution
towards local, national and international, impact of licensing and franchising agreements in
hospitality business and application of PESTLE AND Swot analysis to evaluate internal and
external capabilities of company.
TASK 1
P1 Different types of business
In present scenario of this competitive world, hospitality sector is a fastest growing
industry among marketplace as its mainly concentrate to provide high level of customer
satisfaction in a better way which add value to firm brand image. Moreover, its provide several
benefits to company like opportunity to acquire global skills, enhance social interaction, enlarge
creative which directly reflect in improving the overall performance of organisation in an
impressive and productive way. Furthermore, there are various kinds of business which are
connected with hospitality sector that is described below:
Lodging : It means accommodation for a period or a place to give relaxation to
customers. Along with this, they render various services like resort, food, hotels etc. but at the
same time their main focus is to satisfying customers by providing high quality products as well
as ethical working environment which enlarge overall performance of firm (Blomme, Van
Rheede and Tromp, 2010).

Food and Beverages: It is refer as the process of preparing, presenting, and serving food
and beverages in a hospitable way to customer as per their demand. They provide various types
of services such as: Table services:In this category, the guest enters in the area and is seated. Menu lists are
given or displayed for orders. Moreover, orders are taken by waiter and then the service
is done using a laid cover on the table. It involves English, silver, plate service etc. in
order to satisfy customer. Assisted services:Under this, guest enter in the dining area and helps himself to food,
either from buffet counter or get served partly at table by waiter. Along with this, this
type of service is recommended for large gathering or party. Self services: This service exists normally in industrial canteen, colleges, hospital or
hotel cafeterias. Along with this, to facilitate quick service, the menu is fixed and is
displayed on large boards. The guest may have to buy coupons in advance, present them
to the counter waiter who then serves the desired item (Bowie and et. al., 2016).
Travel and tourism: This sector is made up of complex web of relationship between
variety of suppliers, tourism products, destination marketing organisation, tour operates and
travel agents and many more in order to bring high level of satisfaction to customer as well as
enhance the growth of an economy. Some of the services they render i.e. hotel rooms, give
information, coach tours, souvenirs, fair rides and provide advice for accomplishing business
objective in a innovative style.
Entertainment:Under this category of business, they mainly centring to render better and
good time as well as increased level of satisfaction to customer by conducting various games,
sports or recreation services which add value to Hilton Hotel brand image.
Time share: It is relates with those type of services whose main focal point is to promote
leisure time and for which customer make advance books in order to spend their quality time in a
better and enjoyment way (Buhalis and Crotts, 2013).
P2 Range of operational and functional departments
In present scenario of competitive world, hospitality industry plays a crucial role in
economic growth and enhancement in an effectual manner. Along with this, this group of
business heavily relies on satisfaction of customers and providing specific experience for them in

order to gain competitive advantage in an impressive and productive way. In regard of Hilton
hotel, its business department is classified into two which is described below:
Operational function: It is regarded as heart of hotel which includes production,
controlling, designing, procurement, directing the business activities in order to bring out the
useful and productive outcome which leads Hilton Hotel to accomplish their goal in an efficient
way. Some of the types which Hilton Hotel's operation function includes that is given below:
Housekeeping Department:It is responsible for the immaculate care and upkeep of all
guest room and public spaces (Gomezelj, 2016). Moreover, individuals who excel in this
function have an eye fro detail and a commitment to the training, development an motivation of a
diverse group of talented employees. In a competitive hotel market, it is a service and cleanliness
that really make an influence on guests and determine whether they bill return which increase
Hilton Hotel volume of sales.
Front Desk Department:It is the nerve centre of a hotel in which member of front office
staff welcomes guests, carry their luggage, help them in register, give them their room key and
mail, provide all relevant information to customer regarding hotel activities and clears all the
confusions and final service is check them out. IN fact, it is only function in which customers get
direct contact with hotel employees and it has huge impact over Hilton Hotel productivity and
proficiency.
Functional Function: It signifies optimum utilisation of resources and makes an effort to
implement strategic decision in order to achieve organisational goal as well as attain
maximisation of profit in an efficacious and prompt manner. It encompasses of human resource,
finance, sales and marketing etc. who put their full contribution towards accomplishing Hilton
Hotel common goal within prescribed time limit. Some of its departments is given below:
Human Resource Department: It is mainly responsible for hiring, firing, training and
development of hotel personnel (Henrichs and et. al., 2010). IN addition to this, they also
governs welfare, collective bargaining and industrial relation in order to maintain better
relationship with internal and external factors of business environment for survive within
competitive marketplace for longer period of time.
Finance Department: It involves monitoring of all financial activities of Hilton Hotel like
cash receipts, banking, payroll, accumulating, audit and financial statement to ascertain the
financial position of company and to attain high profitability ratio.

However, from the above explained function it signifies that Hilton Hotel contain
productive departments which enable them to acquire maximum profit margin by making use of
available resource and opportunities in order to face all the threats and provide high level of
satisfaction to employees or customers. Moreover, Hilton Hotel follows hierarchical organisation
structure due to massive size of business which comprises 13 brands serving 140 million guests
in better way. Because of this structure, it helps them to coordinate and manage each
departments work in an impressive manner and assist them to generate good working condition.
Furthermore, each of Hilton Hotel departments are interlinked with each other as they provide
appropriate support and encouragement to each other and it directly benefits firm in acquiring
increased level of proficiency as well as improves overall performance of Hilton Hotel within
prescribed time limit.
P3 Contribution of hospitality industry to local, national and international economies
The growth of this sector and its endeavour to GDP will continue to be substantially
higher than other sectors of economy. Along with this, it's main centring point is to identify the
demand or requirements of customer and based on that they implement corrective course of
action in order to acquire higher level of growth and development (Issa, Chang and Issa, 2010).
Moreover, in this industry customers demand or trend changes according to market situation
which influence directly over Hilton Hotel decision making process as well as impact to local,
international and national economy. Some of the effort of hospitality business to various level of
economies are as follows:
Local: It is regarded as one of the focal point for UK economic growth as it offer
enormous employment opportunities which enable each individuals to improve their life standard
and it directly reflects over the enlargement of GDP rate. Along with this, UK hospitality sector
encourage or convenience large group of population to spend more that allows them to gain
competitive advantage among marketplace and thus it has been proven that there is high degree
of impact of this industry over local economy in terms of increasing productivity and
profitability.
National: This industry contains huge range of potentiality to become the driving force of
economy as it has a reciprocal relationship with other sectors like transportation, entertainment,
aviation etc. which lead them to explore their development capability in creative style. Apart
from this, it plays a key role in fighting with youth unemployment and provide enough platform

so that they enhance their lifestyle and can provide their valuable effort towards in enhancement
of country or nation in an impressive manner. From the recent report of UK, it has been drawn
out that hospitality industry support 3 million jobs to public which directly benefit to UK
economy in a productive way (Janta and et. al., 2011).
International: This industry is very much flexible in nature as it enable several
companies to trade in this from different parts of the world which give a route to enhance global
diversity as well as explore life standard of community or societies. Moreover, it invite large
number of visitors which generate 10 percent development over national and international level.
Furthermore, it generate positive impact over economy as it provide job opportunity to UK
population that enlarge their life standard as huge growth in nation GDP ratio (ECONOMIC
CONTRIBUTION OF THE UK HOSPITALITY INDUSTRY, 2018).
However, there is a high level of demand and growth in hospitality industry which
encourage wide range of food chain companies like McDonald, Pizza Hut etc. to invest in this
which lead them to expand their business operation. Moreover, the growth rate of this sector
pushes companies to focus over licensing and franchising for introducing their outlets in various
geographical regions as well as it helps them to generate enormous employment opportunities
which reflect in an enhancement of country's Gross Domestic product rate.
TASK 2
P4 Various operational roles
Every organisation is formed by various departments or division which combines
together in order to accomplish organisational common goal. Along with this, each of these
business functions has their own unique set of roles and responsibilities, which they perform in
order to attain increased productivity and profitability ratio (Kim, Vogt and Knutson, 2015).
Furthermore, it involves maintenance, executive, front desk, housekeeping, security departments
etc. who put their full contribution towards an obtaining profit maximisation in an effective and
efficient way. The different operational roles are as follows:
Role of maintenance department:In this, manpower is mainly responsible in repairing and
maintaining plant , machinery, water treatment, boilers, external and common area of lightning
etc. in order to generate high level of satisfaction among customer which add value to Hilton

Hotel brand image. Moreover, engineers of Hilton Hotel make sure that whether customer are
satisfied with service offered by company as they re check the lightning, furniture and other
machinery so that consumer create positive attitude towards organisation and it reflect in the
development of firm's profitability.
Role of front desk services department: They are considered as an integral element in
hospitality sector as they responsible for taking and handling bookings i.e. from check in till
check out duration. Along with this, they provide all relevant and accurate information to
customers as well as takes initiative to build a healthy relationship with arrival guests that lead
them to acquire higher level of productivity and proficiency within competitive marketplace
(Lynch and et. al, 2011).
P5 Skills required for roles in hospitality sector
In order to achieve sustainable profitability, an individual must contain an impressive and
productive ability which assist them to accomplish their task in an innovative or creative manner.
Hence, some of the skills which Hilton Hotel personnel require for completing their task within
proscribed time period which are given below:
Organisation skill: It is concerned with those abilities which is link with developing plan
or strategies in order to achieve business vision or mission in a better way. Along with this,
manpower mainly focus on generate positive relationship with customer and always being
available to guests which enlarge Hilton Hotel productivity and profitability. However, this skill
is highly relies to room division manager as they have direct connection with guests as well as
they are required to coordinate with front office function for rendering best and high quality of
products or services that enable them to improve overall performance of company.
Problem solving skill: Under this, personnel adapts unbiased in nature as they takes
initiative to examine exact issues of employees and provide the facility to grieved parties to share
their opinion and based on that human resource manage makes a corrective course of action. BY
this, they are enable to control over employee turnover and encourage employees to take part in
business activities or procedures which as Hilton Hotel to explore their growth and proficiency in
an impressive style (Menet, 2016).
Flexibility: In this, Hilton Hotel executives make use of all opportunities and always be
open to adapt innovative or latest technologies which enable them to gain competitive advantage.
Moreover, they determine current and emerging trend of marketplace and according to that

implement strategic decision that motivate them to add value to employees or customers as well
as Hilton hotel reputation in a better manner.
TASK 3
P6 PESTEL Analysis of hospitality industry
It is a tool that aid firm to examine their external macro business environment which
helps them to meet all threat and challenges in order to increase firm's proficiency ratio. The
PESTLE analysis Hilton Hotel are given below:
Political:It is related with interest rate, tax policy, political stability which impact directly
over company's operation. Recently, there was modification in tax regulation across the globe
which effect Hilton Hotel productivity. However, they tackle this issue with acquiring the
changes in their business operation as well as they are benefit from political stability of UK
government which enhance Hilton Hotel profitability ratio (Molz, 2016).
Economical: The major economic factors that affect Hilton Hotel is the slow growth of
economic growth in China and Europe, and such event impact company heavily because they are
highly dependent on these countries business. However, Hilton Hotel overcome this by reducing
the prices of product or service of UK which helps them to attract more customer towards Hilton
brand and it improves their overall performance efficiently.
Social:As per the recent report of UK population, it has been stated that number of
people who plan to travel internationally increasing day by day which create more challenge to
Hilton Hotel in terms of providing high quality service. Therefore, Hilton Hotel introduce
attractive packaged tours and discounts over luxury resort room which allow them to increase
their volume of sales as well as its profitability.
Technological:This factor has a huge impact over Hilton Hotel business function as most
of the customer prefer online service in order to receive quick response. Hence, Hilton Hotel
took this as an opportunity to grow as they introduce online app to book tickets and also provide
the facility of giving reviews which help company to gain high customer satisfaction and
productivity ratio (Myung, McClaren and Li, 2012).
Environmental: Currently, major environmental issue which Hilton Hotel faces is
increase in fuel prices which reduces travel level of customer. Thus, firm take one step ahead to

make eco friendly products as they decreased emission of burning coal in power plants and take
effort to curb greenhouse products that helps them to gain competitive advantage.
Legal: Hilton Hotel always takes initiative to follow all policies and procedure which is
imposed by UK government which helps them to get less intervention with government and it
add value to customer as well as explore Hilton brand image in competitive hospitality industry.
P7 SWOT Analysis of hospitality industry
Hotels are one of the most important service which directly affect the arrival of tourist or
guest to a particular country. Therefore, hospitality industry plays significant role in the
enhancement of UK economy. Thus, SWOT analysis id regarded as an useful tool which helps
Hilton Hotel to examine their internal capabilities in order to improve overall performance of
company. The Swot analysis of Hilton Hotel is described below:
Strength
 It's brand acknowledgement is high in
market as it serve across the globe
which helps them to build positive
perception among customer regrading
brand (Van den Steen and et. al., 2015).
 It is flexible in nature as it make use of
all growth platforms and they adapts
innovative technologies which helps
them to attract and retain customer at
wide range.
Weakness
 Hilton Hotel is highly dependent on
other inn proprietors company since it
does not claim greater part of lodging
network.
 It contain very less network of inn
connection at Europe and North
America which decreases its
potentiality to attain increased
productivity.
Opportunity
 There is high level of potential in
emerging market which create platform
for adaption more innovation within
business operation or function.
Threat
 Entry of international brands along with
strong hold of companies becomes
challenging to Hilton Hotel to expand
their proficiency.

TASK 4
P8 Current and political trend in hospitality industry
For accomplishing organisational goal in a effective manner, company should be flexible
in nature so that they can gain competitive advantage in an innovative and creative style. Some
of the current and political trend in hospitality industry is given below:
Current Trend
Upgraded technologies: There is high level of demand among UK population which
encourage most of the companies to acquire innovative ideas or tools in order to gain
competitive advantage and can expand business function effectively.
Online services:Majority of people seeks fro fastest and quick response services which
help them to save cost, time and energy. However, it also enable them to attract large number of
customer as well as helps them to retain which lead them to attain high productivity.
Political Trend
Tacking facility: This latest technology enable organisation to monitor or govern each
and every process very effectively which helps them to reduce conflict of interest and enhance
profitability of firm which add value to their brand image.
Internet booking: Hilton Hotel contain the facility of online booking which helps
customer to get immediate response and enhance their morale as well as enhance company's
growth.
However, these latest and innovative technologies enable Hilton Hotel to improve their
overall performance as well as assist them to acquire high level of profit margin that raises its
sales growth or productivity among hospitality industry.
CONCLUSION
From the above preceding report, it has been concluded that hospitality sector plays a
crucial role in the growth and development of economy as it render various platforms to
companies which lead them to enhance their profitability ratio. Along with this, there are several
innovative and creative trends which directly impact in firm's decision making potentiality bas
well as enlarge its business to a next level of growth. Moreover, PESTLE AND SWOT analysis
helps enterprise to examine currents and emerging trend of market and allow them to implement

corrective course of action in order to gain competitive advantage in an efficacious and efficient
manner.

REFERENCES
Books and Journals
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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.
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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
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Online
ECONOMIC CONTRIBUTION OF THE UK HOSPITALITY INDUSTRY, 2018. [Online].
Available through: <https://www.ukhospitality.org.uk/>.

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