Analysis of Contemporary Hospitality Industry: Report for Unit 1

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on its scale, scope, and diversity within the United Kingdom. It explores the industry's structure, including different ownership types like partnerships, franchising, and leasing, as well as the organizational structures of various hospitality establishments, such as hotels and theme parks. The report examines staffing requirements, roles, responsibilities, and qualifications for different positions within the industry, along with operational, managerial, and legislative issues affecting the sector. It also assesses the current image of the hospitality industry, highlighting its customer focus and cultural influences, and concludes by predicting potential trends and developments in the field, such as changes in lifestyle and the rise of boutique hotels. The report also covers the role of professional bodies such as the British Hospitality Association and the British Institute of Innkeeping.

CONTEMPORARY
HOSPITALITY INDUSTRY

Illustration Index
Illustration 1: Scope in Hospitality Industry....................................................................................5
Illustration 2: Sub categories of General Manager in 5-star Hotel..................................................7
Illustration 3: Organizational Structure of Five- Star Hotel............................................................8
Illustration 4: Organizational Behavior of a Theme Park................................................................9
Illustration 5: Different Staffing Requirements in Organization...................................................12

INTRODUCTION
In the world, hospitality industry is one of the most flourishing industries. In this sector,
there are many businesses which are included in this, for example, hotels, restaurants, pubs,
catering and other several services. Customers are the strong pillars of this industry as it is all
about giving customer services and making them satisfied. This sector is very diverse in terms
of functionality and it is always changing according to the current trends in market. These
changes are very important in industry as these interest of businesses is to meet their customer's
expectations in every field. Over the years, development of other industry's has become a big
issue because of various factors, such as, high competition in the industry. Influences of this
sector keep on changing to meet the customer's needs. This report will discuss the analysis of
hospitality sector by understanding its structure and staffing requirements. It will also focus on
its development in terms of operational, managerial and legislative issues as well as potential
trends which are affecting this sector in the United Kingdom.
TASK 1
1.1 Analyzing the current scale, scope and diversity of the hospitality industry
It is one of the most emerging sectors in United Kingdom. It was ranked as fourth largest
industry which generates approx. 53 billion GBP annually in UK. In the UK alone, there is
approx 180,000 hospitality establishments which have more than a million workers working in
this sector.
 Scope and Diversity : Scope of the hospitality industry is huge in UK which refers to
wide range of businesses it provides and different facilities. It is one of the UK’s
important industries with huge growth.
The hospitality industry is very diverse due its innovation, ownership, classification and
grading system, level of service, leisure facilities, future trends, etc. There are various types of
hotels which provide services to their guests which can help them to grow in industry (Claveria,
Monte, and Torra, 2015).

Different Types of Ownership in Hospitality Industry: There are various types of
ownership which are included in these sectors such as:
 Partnership: In this process, two or more individuals or parties work together for
organization and helps in contribution in terms of money, labor, skills, etc.
 Franchising: In this type of ownership, one person uses company's name or brand to sell
its services and for that, he has to pay to the company's owner.
 Contract: In this method, parties sign an agreement about their financial terms of
business.
 Leasing: In this method, money is paid to the owner by occupant for using that property
for business purposes.
1.2 Organizational structure of different hospitality organizations
In hospitality industry, there are so many organizational structures present in it such as
five star hotels, restaurants, bars, parks, etc. All these structures have different functions
Illustration 1: Scope in Hospitality Industry
Source : (Hospitality Industry, 2015)

according to their requirements. There are various organizational structures which exist in this
sector such as line organizational, staff or functional authority organizational, matrix
organizational structure, etc.
 Organizational Structure of Hotel: Organizational structure of hotel has a wide range
of staff employees working there. This hierarchical structure of defines number of
different positions and their responsibilities in the hotel. Organizational structure which
helps in giving services to its customers in the most effective way possible (Bolfing, and
Cadotte, 2015). Number of staff employees can vary in these hotel, but their structure
remains same.
It comprises different organizational structures that consist of specific sub-categories
such as:
 Executive Managers: These are managers which operate standards and policies of hotel
and implement these factors into management system of organization. Their
responsibility is to manage daily activities in hotel and to look after the functions of
various departments like food and beverage, laundry, and housekeeping.
 Assistant Managers: These are those employees who work under executive managers of
the hotel and follow their instructions. Their responsibilities includes assigning work to
their employees, handling complaints (Jones, Hillier, and Comfort, 2016).
 There are so many sub-categories which comes under assistant managers like
 Front office managers
 Housekeeping
 Food and beverages managers
 Sales managers
 Human resource and administration, etc.

Illustration 2: Sub categories of General Manager in 5-star Hotel
Source : (Contemporary Hospitality industry, 2018)

Organizational Structure of Theme Park: Structure of a theme plan is similar to the
hotels and restaurants only. If it is planned to operate in one location, then its functional structure
would be chosen according to the requirements of their customers. In general, the following
departments work in park to deliver their products and services:
 Legal & Administration
 Operations & Maintenance
 Marketing & Promotion
 Finance & Human Capital
 Food & Beverages
Illustration 3: Organizational Structure of Five- Star Hotel
Source : (Hospitality industry, 2018)

1.3 Role of hospitality industry related to organizations and professional bodies
Roles of hospitality sector is different for every organization and professional bodies like:
British Hospitality Association: This is a private association which was established in
the year 1907. It works for the hotel and restaurant operating in UK. The major function of BHA
is to serve government bodies to make proper business environment. This association works
usually in several key areas for the hospitality industry. For example:
1. Sustainability: It promotes the development of economic and environment related
success of hospitality sector (Kandampully, Zhang, and Bilgihan, 2015).
2. Economy: BHA helps to develop an environment for the owners where hospitality
industry can grow in competitive era and in global competition.
3. Employment: It is also concerned in providing the education to individuals in order to
give job to people who are interested in this field.
Illustration 4: Organizational Behavior of a Theme Park
Source : (Introduction to Hospitality Management, 2017)

 British Institute of Inn keeping: It is also known as BII. It helps the licensed hospitality
industries which are operating in UK. BII plays an important role for this sector. For
example: Charitable Status: BII also acts as a foundation which works for the promotion of
standards of hospitality industry. It also helps to manage to develop a profitable business
for the individuals working in this sector (Lederer, Van Niekerk, and Okumus, 2017).
 Advising: BII also gives advice on legal, financial and licensing aspects of business of
hospitality industry (Kim, Vogt, and Knutson, 2015).
 Springboard UK: This organization basically helps individuals and unemployed who
need a job or career for betterment of their life's standards. Their main aim is to promote
this sector as a most suitable sector to work. Another major function of this organization
is to work for human resources and social responsibility needs to raise funds for charity
(Hospitality Staff Roles, Responsibilities and Qualifications, 2017).
TASK 2
2.1 Assessing the Staffing requirements of different Hospitality Businesses
These staff requirements are varies for different organizations due to various needs of
every business. It is a process of recruiting candidates who are capable of giving their best for the
organization in which they are working. Hospitality is one of the biggest branches of the
industries working in various departments and so, their staff requirements are also diverse. For
example:
 Executive Managers,
 Banquets,
 Chefs,
 Event Managers,
 F & B managers,
 Finance managers,
 Receptionist,
 General Managers,
 House keepers,
 Sales Manager,

 Marketing manager, etc.
All these recruitments process of the organization should be done very carefully as it has
a direct effect on their functionality. For this, proper interview has to be done by the HR
department. Giving them proper training to understand their work more accurately (Lopes,
2016).
2.2 Different Roles, responsibilities and qualification requirements for hospitality staff
It is very important for the hospitality industry to properly fulfill their roles and
responsibilities which has been assigned to them in the organization. It should be ensured by the
management team that every employee is giving their best service to the customers. There are
different staff members who works in the hospitality industry, for example, manager, supervisor,
Illustration 5: Different Staffing Requirements in Organization
Source : (Contemporary Hospitality Industry, 2018)

management trainee, etc. All these employees have different roles and responsibilities in the
organization to follow, which is explained below,
 Managers : Important responsibility of a manager in the company is to understand and
make plans for sales and profits, and motivate the staff members to work more
effectively. He also helps in hiring new staff employees. Minimum qualification for a
manager is a certificate or an associate degree, must have organizational, administrative
and interpersonal skills.
 Supervisor : Their main work in the organization is to look after the operations, giving
training to the employees. Minimum qualification for this post is that, they must have a
hotel management degree. Should posses good communication skills and must have a
good work experience in the respective field (Pizam, Shapoval, and Ellis, 2016).
 Operational Staff members : Role of operational staff in the hotel is to assist the daily
responsibilities given to them. Minimum qualification for this post is that he should have
certification in the area in which they are interested.
TASK 3
3.1 Analyzing Operational, Managerial and Legislative issues resulting from recent
developments
In this industry, there are various issues related to operational, legal or managerial in the
organization. These factors affect the management of this sectors in several ways, for example,
 Managerial Issues : Responsibility of manager in the firm is very important in order to
maintain the proper functioning. Some managerial issues which can arise, are as follows,
1. There is poor organization of planning and administration of resources in hotel,
2. There is very high employee turnover,
3. There is a poor communication gap,
4. There is incomplete implementation and evaluation, etc
 Operational Issues : There are so many operational issues which can arise in the
organization (Radojevic, Stanisic, and Stanic, 2015). Such as,
1. There is a lack of focus in the organization,
2. Shortage of funds in the organization,
3. Poor results from products and services, etc.