The Contemporary Hospitality Industry Report

This report analyzes the contemporary hospitality industry, focusing on the May Fair Hotel. It covers organizational structures, staffing requirements, managerial issues, and future trends, providing a comprehensive overview of the sector's dynamics and challenges.

The Contemporary Hospitality
industry

Table of Contents
ORGANISATION SUMMARY......................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Current scope, scale and diversity of hospitality industry....................................................2
1.2 Organisational structure of hospitality business...................................................................3
1.3 Role of hospitality organisations and professional bodies....................................................6
TASK 2............................................................................................................................................6
2.1 Staffing requirements of hospitality business.......................................................................6
2.2 Roles, responsibilities and qualification required to staff.....................................................7
TASK 3............................................................................................................................................8
3.1 Analysing managerial, operational and legislative issues from recent developments..........8
3.2 Current image of the hospitality business.............................................................................9
TASK 4..........................................................................................................................................10
4.1 Predictions for potential trends and developments.............................................................10
4.2 Impact analysis for the development and predicted trends.................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

ORGANISATION SUMMARY
The May Fair Hotel is located in Stratton St, Mayfair, London W1J 8LT, United
Kingdom. The hotel is given 5 star as there are lot of facilities for the customers
travelling from outside the countries or any local customer. This class hotel is opened by
King George V in 1927. The hotel is near the boutiques and art auction on Bond Street.
There are plush rooms in the hotel and also in bathroom Sicilian marble is used. Free
Wi-Fi, flat TV and mini bars are available in working areas. The hotel is fully Air-
conditioned and pets are permitted. Room service, laundry service is available for the
customers. There are some more facilities in the hotel such as restaurants and bars,
meetings and events, wedding planning, gift vouchers, art gallery, special offers for
customers and spa & gym is available for the customers effectively and efficiently. It can
be said that the hotel is too costly but also consider 5 star. The location and view is
excellent from the rooms and many facilities are provided by the management and staff
to the customers. Bookings are available online for the consumers and travellers.
INTRODUCTION
Hospitality management is crucial for the firms and country in order to increase
the tourism and economy level effectively. The report will cover the scale, professional
bodies, role, scope, structure and diversity of hospitality business. Staff requirements
and their roles and responsibilities will be discussed in this report. Managerial,
operational and legislative issues associated with the current image of hospitality
business is discussed. Predictions for potential trends and developments impact will be
covered.
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TASK 1
1.1 Current scope, scale and diversity of hospitality industry
It can be said that hospitality business help counties to make contribution in the
economy and also provide benefits to the local restaurants and hotel business. The
diversity of hospitality business is very wide and increase the tourism sector within UK
effectively.
Scale-Restaurant, bar and pubs, lodging, entertainment, caters, gaming, event
management etc.
Scope- The GDP contribution, turnovers, employment and job opportunities.
Diversity- Sectors are linked with each other, Socio economic backgrounds.
Hospitality services: The hospitality business and sector help and support other firms
that is ranging from hotel business to restaurants effectively. The May Fair Hotel is
located in London and providing hospitality services to the customers such as free Wi-
Fi, flat TV and mini bars are available in working areas. The hotel is fully Air-conditioned
and pets are permitted. Room service, laundry service is available for the customers.
Some special facilities for an example, restaurants and bars, meetings and events,
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Illustration 1: UK: Direct hospitality employment
Source: ABI, LFS, Oxford Economic

wedding planning, gift vouchers, art gallery, special offers for customers and spa & gym
is available for the customers. The staff is skilled and knowledgable as they attend
customers very well with happy faces (Durna, Dedeoglu and Balikçioglu, 2015).
Management is very effective and employees have their association with full time
employability.
Travel and Tourism services: The United Kingdom government support tourism that it
helps to improve the economy level within country effectively. They also provide
expansion services to the hospitality business. The staff is from different counties that
travellers does not face any difficulty to communicate their issues. The hotel is
connected to the inbound as well as domestic tour operators to provide their services
towards customers. The scope is very large that there are number of hospitality
business within and across the countries and also contributing towards increasing
economy level.
Thus, it can be said that the current scope, scale and diversity of the hospitality
business is very large in order to manage the customers coming from outside the
countries for travelling purpose. This will provide effective service to them in order to
enhance the brand image and tourism sector within UK.
1.2 Organisational structure of hospitality business
The structure of every organisation is different in hospitality sector. Facilities,
services and work is also different but for the common purpose of delivering food, hotel
and restaurant services to the customers effectively. Below is a organisational structure
described for the two hospitality business such as Small Boutique hotel in UK and The
May Fair Hotel London. These are the two different hospitality business service
providers and also the scope, scale is various to each of them. Two diagrams are
provided below showing the organisational structure of both hotel businesses.
The May Fair Hotel
The May Fair Hotel is located in Stratton St, Mayfair, London W1J 8LT, United
Kingdom. The hotel is given 5 star as there are lot of facilities for the customers
travelling from outside the countries or any local customer. The hierarchical
organisational structure in the hotel is pre-defined (Gummesson, 2014).
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Authority: Employees in the firm are highly motivated towards their work in order to
provide effective services and benefits to the customers. Their roles and responsibilities
are clear and well-defined.
Communication: The communication is effective that everybody knows their roles and
duties in order to maintain the image of business. Reporting system is also fast and
employees communicate with each other effectively.
Centralisation: The hierarchical structure of hotel business will help to develop and
maintain a degree of centralisation effectively. Strategies and plans are formulated by
the managers within the firm.
Hamilton’s Boutique Hotel
This small boutique hotel comprises of an organisational structure that is
consisting of specific sub-categories (Johnson 2015). A brief discussion in this respect
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Illustration 2: Hierarchical organisational structure
Source: Johnson, 2015

is required here. This small boutique hotel majorly consists of two General Managers
who are required administering specific sub-categories that are functioning under them.
One of the General Managers has five categories below them which comprises of
departments like front-desk, audit, housekeeping, maintenance and sales whereas the
other General Manager is administering five segments which are human resources,
food and beverage, accounting, sales as well as marketing (Jani and Han, 2014). The
sub-category in respect of rooms consists of categories like front-office, reservations,
housekeeping, engineering, laundry, security, as well as PBX. The sub-category for
food and beverages consists of categories like production of food, services associated
with food as well as room, beverage department, convention as well as catering and
stewarding.
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Illustration 3: Boutique organisational structure
Source: Iqbal 2011

1.3 Role of hospitality organisations and professional bodies
The May Fair Hotel is providing hospitality services to the customers and
travellers across and within the country effectively. The organisation is rated 5 star hotel
in London that services are expensive for the normal people. There are several roles of
hospitality organisation provided below:
Economy: The May Fair Hotel help to develop a environment in which the business
contribute towards the economic growth and competitive era within global competition
effectively and efficiently.
Employment: Employees working in the hotel are highly qualified and educated. The
knowledge and skills will help them to attend the customers coming from outside the
countries (Jung and Yoon, 2015). This will help to increase employability and create
opportunities within the business.
Sustainability: The business should be sustainable in three parts such as
environmental, economical and societal related success. This will help to develop the
economy level of respective country and enhance opportunities.
Health and Safety: Health and safety of employees working the firm in terms of kitchen
department, water department and other harmful activities within business should be
managed by the trained employees (Iqbal 2011).
Managers: Managers are the professional body of firm in order to manage and control
the different activities in various departments effectively. Managers evaluate al the
situations and aspects to forward business towards profitability.
Human resource management: Human resource can be described as internal body or
resources of firm. The management of human resources in the hospitality business is
very important in order to provide effective services to the customers.
TASK 2
2.1 Staffing requirements of hospitality business
Staff is necessary in every hospitality business in order to manage the different
work and operations provided by the managers within the firm. This will help to manage
the activities within May Fair Hotel.
Food service management: Food service management is important for the firm that it
is a crucial part of service provided by the firm towards customers. Food should be
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hygiene and according to the customer needs (Rahimi and Gunlu, 2016). In order to do
that the kitchen department staff should be related to the food studies or education.
Customer satisfaction is necessary to the staff managing the food department
effectively. Staff will include cooks, servers, bartenders, hosts and hostesses. Head
cooks and chefs oversee the kitchen staff, prepare foods, develop menus and buy food
supplies. Sous chefs work under the head cook or chef preparing meals and may direct
other kitchen workers.
Accommodation and hotel management: Operational activities should be managed
by the managers effectively in order to provide quality services and experience to the
customers. Manager will direct and provide suggestions to the housekeeping,
maintenance, security and room service staff.
Housekeeping staff: The May Fair Hotel heir the best employees for the housekeeping
to keep customers accommodations clean and clear effectively. The housekeeping staff
works to clean bathrooms, make beds, clean rooms and vacuum. Training should be
provided by the managers in order to keep the housekeeping effective daily.
Travel agent: Travel agent of the firm will help customers to plan their trips, bookings,
entertainment and transportation effectively. Agents provide number of option towards
consumers in order to select the best and appropriate under the budget (Rahimi and
Kozak, 2017). The agents are directly connected with the hotels, restaurants, tours and
travel companies in order to offer special promotion to determine the quality of services.
2.2 Roles, responsibilities and qualification required to staff
The staff working in the hotel have some role and responsibilities in order to
manage their work effectively. Qualified employees are also necessary in order to assist
customers and provide them quality services. Roles, responsibilities and qualification for
the staff in May Fair Hotel are provided below:
Supervisor: Supervisor in the firm manage the operational activities such as inventory
management, stock availability etc. supervisor also train employees in order to enhance
their skills and knowledge.
Supervisor must have oral and verbal strong communication skills and
experience. Supervisor required education in business management to manage and
control different activities.
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Manager: Managers in the business analyse and plan strategies in order to increase
the profitability and tourism within May Fair Hotel effectively. Manager also manage
standards and motivate employees towards training and development.
Managers required interpersonal skills, good knowledge and certificate in
associate degree. Communication and administrative skills are also necessary.
Apprentice: Apprenticeship depends on the work such as follow and learn rules
formulated by managers and employer. He will help to demonstrate safety for workers
and himself.
Apprentice should be 16 year old or over and also not involved in full time
education.
Management trainee: Trainee assist with the daily responsibilities and activities within
the business. He attend the meetings and training programs. Trained in different
departments.
Management trainee required communication and administrative skills and
knowledge.
Employees: Employees are those people who are qualified to do their daily
responsibilities and work effectively. Roles and responsibilities of worker is based on the
area where he is working (Ryan, 2015). Provide services to the customers such as
housekeeping and room service.
Qualification of the staff is depended on the role and department activities.
Diploma, degrees, skills and knowledge pursue their work and job. There are various
roles and responsibilities of employees in the firm as they all work in different
department individually and in team effectively.
TASK 3
3.1 Analysing managerial, operational and legislative issues from recent developments
The recent developments in operational, managerial and legislative have some
positive and negative impacts on hospitality industries effectively. Here are some issues
discussed below for the May Fair Hotel regarding managerial, operational and
legislative.
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OPERATIONAL ISSUES
Labour scarcity: Labours such as skilled and knowledgable are difficult to find. A
contracting labour power is the ideal challenge in front of the international hospitality
business, consistent with the International Society of Hospitality Consultants, which of
late assembled to devise globe matters and grade them as per significance. Labour
power is the base of firm in order to manage the work effectively. Employees are
demanding these days and also there is lack of good workers to work in the
organisation (Schuckert, Liu and Law, 2015).
Cost suppression: The cost for managing employees in the firm is increasing day by
day. The company should focus on reducing different departments extra cost in order to
manage the operational activities. This will also help to keep high and quality standards
for the customers in terms of their expectations. Companies are expecting to do more
with less.
MANAGERIAL ISSUES
Increased competition: The main managerial issue in hospitality industry is that in this
global world the competition is increasing day by day. There are a lot of hotels,
restaurants and places which affect the business of May Fair Hotel effectively.
This has been especially happening due to the diverse nature of the customers
to whom the bigger hospitality companies are catering these days.
LEGISLATIVE ISSUES
There are so many changes done by the government in hospitality industries
policies and procedures in terms of changing legislatives and rules effectively.
According to this, alcohol licensing is approved now in which the organisation related to
hospitality are able to keep alcoholic products in their firm. They need a license which
will be approved by the government effectively (Sigala, 2017). Smoking in indoor and
public places is also prohibited now. There are a lot of challenges a company faced
during the service distribution towards customers.
3.2 Current image of the hospitality business
The two aspects will be considered during discussing the current image of
hospitality industries which will be media exposure and customer focus and culture
effectively. Both are described below:
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Customer culture and focus: Customer plays a very significant role in the current
image of hospitality industry. Education and understanding these are the two significant
reasons associated with customers in order to provide services according to the
consumer needs and expectations. The current image of the firm is very good that they
are able to fill the customer expectations and demands effectively.
Apart from this, those firm who are unable to meet the customer expectation and
demands will be not functioning properly and appropriately. It can be said that every
thing is possible with a good and effective communication. Due to the globalisation
there are number of organisations available related to the hospitality business. This will
reduce the customer base for May Fair Hotel.
Media exposure: Media has capability to build, support and increase the image of firm.
Hospitality business have a good exposure with the help of media effectively. Media is
only a source in order to develop the organisation image and goodwill towards
customers effectively. Facebook, Instagram, Twitter and many other websites are the
best example of social media platform where a number of people visit everyday
(Supanti, Butcher and Fredline, 2015). This will help The May Fair Hotel to expand their
business in present and future as well.
Today’s hospitality sector functions in the dynamic environment, so as to retain
its customers and have a competitive edge, the quality of service has increased. This
tough competition has raised the expectations of the customers thus forcing the industry
players to raise the bar of the services being provided by them.
TASK 4
4.1 Predictions for potential trends and developments
It can be said that there is a boost in sightseeing and hospitality business that
travellers on the sets of tourism like to spent their time on visiting places and attractions
effectively. There are so many trends that are as a rule having an impact on The May
Fair Hotel such as worry with visitor or customer health and safety as well as protection
and developed assortment in personnel composition effectively. There are so many
technologies and innovations are taking places in the tourism industry which helps to
develop the hospitality business operational and market activities. The economy level is
also growing with the operations and government supporting such industries (Zhao and
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Ghiselli, 2016). There are some certain policies and strategies managed and controlled
by the firm in order to manage their business activities effective in the market which will
help them to increase their profits effectively.
There are some potential trends in the hospitality sector and can be reviewed as below:
 Extra green and economical accommodations.
 Expansion of extra-big hotels (multi-functional amenities with night club,
supermarkets, theatre, funfair).
 Extra boutique lodges.
 intellectual hotels with superior know-how
 Utilizing the visitor’s essential fingerprint with the intention of carrying out all the
procedures (enrol, coats, vacate, etc.).
 Growing worker wages with the intention of preserving the on hand employees.
 Extra stress on the web and know-how.
 Visitors’ fundamental and substantial social associations will be the most
excellent allotment controls.
Increased competition: The main managerial issue in hospitality industry is that in this
global world the competition is increasing day by day. There are a lot of hotels,
restaurants and places which affect the business of May Fair Hotel effectively.
Thus, it can be justified from the above predictions that development and
potential trends has an impact on hospitality business in both positive and negative
terms effectively and efficiently.
4.2 Impact analysis for the development and predicted trends
The predicted developments and trends for the industry says that the customer
preference is changing with the advent of new set of consumers. The teenagers are
very interested in discovering, exchanging, and getting new experiences and they are
willing to pay for these (Zopiatis, Constanti and Theocharous, 2014). These peoples try
to find unique as well as novel experience and this will help to command the changes
for The May Fair Hotel. Technology has also a positive impact on industry that it will be
able to streamline a lot of processes for the companies which is also used by the
customers for seek for information.
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Economical Impact Analysis: Hospitality business is important for the country in order
to increase the tourism and also to provide quality and effective services to the
travellers and customers effectively. This will involve activities such as sightseeing,
visiting and other activities which will help to earn money in terms of sales, taxes,
earnings, income and occupations. This will help UK country to increase the economy
level in order to increase the opportunities and employment effectively.
Financial Analysis: Financial analysis will help firm to evaluate whether it is in profit or
loss. This will also help to change their strategies and plans accordingly and implement
them as changes. This will provide significant benefits to the firm in order to increase
their revenues by attracting customers and tourists.
Demand Analysis: The demand analysis describe the necessity of hospitality business
within the country that there are some places where tourism is ineffective. Places like
UK and Europe are the best tourism countries that attracts people to visit the places
effectively (Sigala, 2017). This will also increase the demand for hospitality business.
Environmental impact: Environmental impact refers to the trend and culture of country
where the business is providing services. The UK trend and culture is very attractive
and effective that attracts people. It will also help to increase the economy in order to
create more opportunities and benefits for the hospitality businesses.
CONCLUSION
It can be concluded from the above report that hospitality business help to
increase the tourism within the country by providing quality and effective services to the
customers. The scope of hospitality business is increasing day by day. The May Fair
Hotel is a 5 Star hotel provides hotel facilities such as rooms,Wi-Fi, flat TV and mini
bars are available in working areas. The hotel is fully Air-conditioned and pets are
permitted. Room service, laundry service is available for the customers. Skilled staff is
also important for the firm in order to manage the business activities. Potential trends
and developments has both positive and negative impact on the hospitality firm.
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REFERENCES
Books and Journals
Durna, U., Dedeoglu, B.B. and Balikçioglu, S., 2015. The role of servicescape and
image perceptions of customers on behavioral intentions in the hotel
industry. International Journal of Contemporary Hospitality Management 27(7)
pp.1728-1748.
Gummesson, E., 2014. Productivity, quality and relationship marketing in service
operations: A revisit in a new service paradigm. International Journal of
Contemporary Hospitality Management 26(5) pp.656-662.
Jani, D. and Han, H., 2014. Personality, satisfaction, image, ambience, and loyalty:
Testing their relationships in the hotel industry. International Journal of
Hospitality Management 37 pp.11-20.
Jung, H.S. and Yoon, H.H., 2015. The impact of employees’ positive psychological
capital on job satisfaction and organizational citizenship behaviors in the
hotel. International Journal of Contemporary Hospitality Management 27(6)
pp.1135-1156.
Rahimi, R. and Gunlu, E., 2016. Implementing Customer Relationship Management
(CRM) in hotel industry from organizational culture perspective: Case of a
chain hotel in the UK. International Journal of Contemporary Hospitality
Management 28(1) pp.89-112.
Rahimi, R. and Kozak, M., 2017. Impact of customer relationship management on
customer satisfaction: The case of a budget hotel chain. Journal of Travel &
Tourism Marketing 34(1) pp.40-51.
Ryan, C., 2015. Trends in hospitality management research: a personal
reflection. International Journal of Contemporary Hospitality Management 27(3)
pp.340-361.
Schuckert, M., Liu, X. and Law, R., 2015. Hospitality and tourism online reviews: Recent
trends and future directions. Journal of Travel & Tourism Marketing 32(5)
pp.608-621.
Sigala, M., 2017. Collaborative commerce in tourism: implications for research and
industry. Current Issues in Tourism 20(4) pp.346-355.
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Supanti, D., Butcher, K. and Fredline, L., 2015. Enhancing the employer-employee
relationship through corporate social responsibility (CSR)
engagement. International Journal of Contemporary Hospitality
Management 27(7) pp.1479-1498.
Zhao, X. and Ghiselli, R., 2016. Why do you feel stressed in a “smile factory”?
Hospitality job characteristics influence work–family conflict and job
stress. International Journal of Contemporary Hospitality Management 28(2)
pp.305-326.
Zopiatis, A., Constanti, P. and Theocharous, A.L., 2014. Job involvement, commitment,
satisfaction and turnover: Evidence from hotel employees in Cyprus. Tourism
Management 41 pp.129-140.
Online
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contemporary-hospitality-industry/>
Iqbal 2011. Boutique organisational structure. [Online]. Available
through:<https://www.locusassignments.com/solution/unit-1-contemporary-
hospitality-industry-assignment/>
Oxford Economic. UK: Direct hospitality employment. [Online]. Available
through:<https://www.locusassignments.com/solution/unit-1-assignment-
contemporary-hospitality-industry/>
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