Analysis of the Contemporary Hospitality Industry Report - Module 1

This report provides a comprehensive analysis of the contemporary hospitality industry in the UK. It begins by examining the scale, scope, and diversity of the industry, highlighting its significant contribution to the UK's GDP and job market. The report then delves into the organizational structures of various hospitality businesses, such as five-star hotels and small restaurants, outlining the roles and responsibilities within each. It also explores the roles of key organizations and professional bodies, including Springboard UK, the Institute of Hospitality, and the British Institute of Innkeeping. Furthermore, the report assesses staffing requirements across different hospitality businesses, detailing the roles, responsibilities, and qualifications for various staff positions. The report also addresses operational, managerial, and legislative issues, as well as the current image of the hospitality industry. Finally, it offers predictions for potential trends and developments in the industry, analyzing their potential impact. The report uses illustrations to visually represent the size and structure of the hospitality industry. This report is available on Desklib, a platform offering past papers and solved assignments for students.

CONTEMPORARY HOSPITALITY
INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Analyzing the current scale, scope and diversity of the hospitality industry........................4
1.2 Organizational structure of different hospitality organizations............................................6
1.3 Role of hospitality industry related to organizations and professional bodies......................7
TASK 2............................................................................................................................................8
2.1 Assessing the Staffing requirements of different Hospitality Businesses.............................8
2.2 Roles, responsibilities and qualification requirements for hospitality staff..........................9
TASK 3..........................................................................................................................................10
3.1 Operational, Managerial and Legislative issues in Hospitality Industry............................10
3.2 Current image of the hospitality industry............................................................................11
TASK 4..........................................................................................................................................12
4.1 Predictions for Potential trends and Developments in Hospitality Industry.......................12
4.2 Impact analysis for the predicted trends and developments in Hospitality Industry..........12
CONCLUSION..............................................................................................................................13
REFERENCES .............................................................................................................................13

Illustration Index
Illustration 1: Size of Hospitality Industry.......................................................................................5
Illustration 2: Organizational Structure of a Five star Hotel............................................................6
Illustration 3: Organizational Structure of a Restaurant..................................................................7

INTRODUCTION
Contemporary hospitality industry is a huge sector operating in UK. It consists of variety
of fields which includes hotels, restaurants, pubs, bars, lodging, event planning, theme parks, etc.
within this industry. These sectors are usually earned a lot in terms of profit. It depends upon
availability of leisure time and disposable income of the customers.
Hospitality industry consists of several functions to follow such as facility maintenance,
direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management,
marketing and human resources. The hospitality industry covers a wide range of organizations
offering food services and accommodation. In this report, it will focus on the analysis of
hospitality sector by studying its size, scope and structure, staffing requirements, its development
in terms of operational, managerial and legislative issues as well as potential trends which are
affecting this sector in United Kingdom.
TASK 1
1.1 Analyzing the current scale, scope and diversity of the hospitality industry
The hospitality industry is a wide and very diverse industry of UK which serves many
customers every year. There is also a huge demand of jobs in this sector, for example, caretaker,
events manager, wedding planner, housekeeper, etc. Currently, this industry is operating very
successfully in United Kingdom because it is directly linked with it to attract more customers to
visit but their services increase their customer rate as well as profitability rate. There is a wide
scope and diversity of the hospitality industry. It was ranked as the 4th largest industry in 2012
which generates almost 53 billion GBP annually. The main purpose of this sector is to satisfy
their customers by providing better services to them which they can enjoy.
 Size and Scope of Hospitality Industry: There is a high scope in hospitality industry as
it contains many small businesses in it, for example, restaurants, bars, clubs, travel
services, event management services, tourism information services, hostels, self-catering
accommodations, etc. Customers play a crucial role for the up-liftment of this industry as
they contribute a lot (Radojevic, Stanisic and Stanic, 2015). Approx. 11% of the total
GDP of UK is generated through hospitality industry. It also helps to give employment to
the people for example, there are approx. 9,000 jobs in event management which are
generated yearly in the UK.

 Diversity of Hospitality Industry: There is a wide range of functions which is provided
to their customers. Such as,
1. Food and Beverages: It is the largest sector operating in hospitality industry. It consists
of preparing meals, snacks and beverages for immediate consumption on and off the
premises of a hotel or restaurant. In this sector, it provides variety of food items and first
class services to their customers.
2. Lodging: This is a type of facility which is provided to stay for a night or two. It can
include hotels, hostels, camp grounds, motels, etc. which provides all the necessities
required for the customers.
3. Travel and tourism: This sector deals with services related to travelling from one place
to another by any means of transportation, for example, cars, buses, taxi, train, plane, etc.
The major function of tourism is to encourage people to travel. When people travel either
for business or for leisure, they spend money on hospitality (Ryan, 2015).
Illustration 1: Size of Hospitality Industry
Source : (Hospitality Industry, 2016)

M 1: Hilton Hotels Corporation was founded in 1919 by Conrad Hilton. It has approx 3,890
hotels and with more than 642,000 rooms in 91 countries and in excess of 135,000 crew
members worldwide. It provides world class services to their customers such as, luxury suits
with amenities like, swimming pool, bar, restaurants.
D 3: Diversity of products and services is greatly affected by scale and scope of the industry as it
is directly linked with it. If there is a scope in their production line than it will definitely affects
its services related to that products.
1.2 Organizational structure of different hospitality organizations
Organizational structure in hospitality industry includes all functions and operational
management. There are so many structures present in this industry, for example, five star hotels,
restaurants, etc. All of there organizational structures have different functions according to their
requirements in the organization.
Organizational Structure of a Five Star Hotel: Organizational structure of a 5-star
hotel has vast staff positions which are pre-defined in the system. The hierarchical organizational
structures of these hotels define numbers of positions and their responsibilities. There are a
number of benefits of this structure. For a five star hotel, it consists of General Manager which is
required to manage all important work of the hotel, such as, assigning work to employees,
managing their guests, etc. He has different departments under him, i.e., front-desk, audit,
housekeeping, maintenance and sales and production, marketing, accounts and finance, HR, etc.
All these departments have sub categories, for example, staffs, recruitment, finance operations,
assistant controllers, etc (Kandampully, Zhang and Bilgihan, 2015).

Organizational Structure of a small Restaurant: The structure of a small or medium
restaurant is not wide as compared to a five-star hotel. It generally consists of a manager, some
employees who work in the restaurant, security, and finance manager. This type of
organizational structure is very simple and thus it becomes easy for employees to understand
their role in an organization as well as these structures is also very helpful in increasing their
productivity as specialization leads to enhancement of performance of workforce which
ultimately helps in increasing profitability rate of the organization (Hospitality Industry, 2017).
Illustration 2: Organizational Structure of a Five star Hotel
Source : Contemporary Hospitality Industry, 2018

M 2: In Marriott hotels they have vast structure as it a five star hotel. It has several executive
managers which performs different functions, for example, one will manage the marketing
department other will look after financial statements, etc. Other than this, they have receptionists,
house keepers, kitchen staff, etc.
1.3 Role of hospitality industry related to organizations and professional bodies
Roles of hospitality industry is different for every organization and professional bodies
like for example:
1. Springboard UK : This organization basically helps those people who are unemployed
and are in a situation where they require a job or a career to improve their life's standards.
Their main aim is to promote and enhance hospitality industry as the most suitable sector
to work. Another major important function of Springboard UK is that they work for
addressing human resources and corporate social responsibility needs of their business
associates and help them to raise a good amount for charity.
2. Institute of Hospitality : This institute specifically works for hospitality industry to train
their existing and aspiring mangers for development of this sector in the target market. It
has different roles and responsibilities, for example:
Illustration 3: Organizational Structure of a Restaurant
Source : Contemporary Hospitality Industry, 2018

 Qualification & Accreditation: It helps to offer a number of different programs in the
field of management which can be beneficial for the industry to grow in the target
market.
 Membership: There are so many programs which is operated by the Institute of
Hospitality to provide opportunities to increase skills which is required for the
management of industry (8 Emerging Hospitality Industry Trends, 2016).
3. British Institute of Inn keeping : It is abbreviated as BII. It is a professional
organizational body which helps the licensed hospitality industry operating in UK. The
role of BII in hospitality industry are:
 Charitable Status: It serves as a charitable trust which helps in promotions of standards of
this sector. It also manages to get a good revenue from the market.
 Advising: BII also helps to provide legal and financial information related to the industry
which can be helpful for organization to implement.
4. 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, in
employment, for the economic growth of the organization, in sustainability, etc.
TASK 2
2.1 Assessing the Staffing requirements of different Hospitality Businesses
In any industry it is very important to have a well managed and well qualifies staff to
deliver their services on time to their customers. It should be done very carefully by the
management team of any organization in order to increase their sales and growth in the market
(Jones, Hillier and Comfort, 2016). There are various requirements of staff in the organization
according to the department, for example,
Hotel Manager The main duty of the manager is to manage all the work in the
organization to work properly.
Catering Manager It helps in the catering management of the organization.
Restaurant Manager It is responsible to operate the functions of restaurants and manage its

work.
Counter boys These are those employees which helps in the reception to solve their
customer's issues.
House keeping They manage to keep the environment neat and clean.
Sales & Marketing The main role of this department is to manage all the sales and
marketing aspects of the organization.
Event Managers They manage to organize different events which happen in the
organization.
Finance & Accounts They keep records of all the financial statements of the organization.
Kitchen operation’s in
charge
These are the in charge of kitchen department which take care of all
the needs and requirement for the kitchen.
For recruiting any new employee in the organization, it is very important for the manager
to consider few factors, for example, while taking interviews of the candidates they should ask
proper questioning to evaluate the qualities of that candidate or employee. They should design a
good and attractive advertisement for their recruitment which helps to attract more desirable
candidates to work for them.
2.2 Roles, responsibilities and qualification requirements for hospitality staff
In hospitality industry, there are so many staff members which works there in different
department, such as, executive managers, supervisors, staff employees, etc. All these staff
members have different roes, responsibilities and qualification according to their post in the
organization.
Executive Managers
 Executive manager plays an important role in the proper
functioning of the organization. Its main aim is to maintain
the standard and quality of organization and helps to analyze
and do planning for its sales and profits.
 Manager must have a certified degree for the post. He should
have organizational, administrative and interpersonal skills.

Supervisor
 Supervisor is responsible to supervise all the management
and operations of the organization. He helps to manage and
trains the staff members working in the organization.
 Minimum qualification of a supervisor should have a good
communication skills and must have a great work
experience. He should know how to handle situation in the
workplace (Schuckert, Liu and Law, 2015).
Accounts and Finance  These employees play a very crucial role in managing all the
financial statement of the organization. It is very important
for them to have a proper knowledge of accounting and
finance.
 Minimum qualification of these employees is a degree in
accounting and finance.
Apprentice
 These are the employees such as, house keeping boy, office
boy, etc. They have to learn and follow rules set by their
managers. Must demonstrate safety for self and coworkers.
 Minimum qualification for apprentice includes, he must be
16 years and above and is not in fulltime education
TASK 3
3.1 Operational, Managerial and Legislative issues in Hospitality Industry
There are various issues related to hospitality industry which they have to face at several
levels. It can vary from operational, legal or managerial level in the organization (Kim, Vogt and
Knutson, 2015). Some following issues which the organizations can face in the businesses due to
recent development, are as follows,
Managerial issues
There are so many issues which can arise at managerial level in the organization. Manager has
so much of roles and responsibilities which he has to manage in the organization. Some
managerial issues are as follows,
 Increased Competition : There is a huge competition in the target industry which the

manager has to cope up with. Foe this he has to come up with new and innovative ideas
which he can implement in their system and improve it.
 Management : It is very important to have a proper management in the organization
which is ensured by the manager only.
 Business or strategic Planning : He has to build an effective plan or strategy for the
organization to stay in the top positions in target industry.
Operational Issues
There are so many operational issues which can arise in the organization. Such as,
 Service : It is very crucial to provide or deliver the best service to their customers. This
will help them to increase their productivity and sales in the market, which will
eventually increase their profit rate.
 Labor scarcity : It plays an important role in any business. Having a good number of
labor in the organization will help them to work properly and deliver the best work.
 Quality : For any business, providing a good quality of services helps them to grow in
the industry. It can be achieved by implementing new and unique strategies into their
production (Gaggioli, 2015).
Legislative issues
There are a variety of legislation that defend employers, workers and customers and it also has
an impact on the hospitality industry. This can be completed by factors, such as, cleanliness,
surroundings, fitness & security and office relations of the organization.
 Hygiene : Cleanliness/Hygiene is a main factor which affects the hospitality industry
most. They should consider it very carefully.
 Health and safety : Security measures or issues should also be considered by the
hospitality business. In this industry, there are rules regarding the workplace relations
that need to be followed to sustain in the industry.
3.2 Current image of the hospitality industry
The current hospitality industry is very optimistic and try to implement all the trends into
their system. It is very important for them to capitalize all these opportunities to stay in the top
positions in the target industry. This is the industry which is growing day by day. It has loads of