Contemporary Hospitality Industry: Business Analysis and Development

This report provides a comprehensive analysis of the contemporary hospitality industry, examining its diverse business types including lodging and accommodation, food and beverages, travel and tourism, entertainment, and timeshares. It details the range of operational and functional departments within a hotel context, specifically referencing the Intercontinental Hotel Group, and outlines the industry's significant contributions to local, national, and international economies. The report further explores the various operational roles within the hospitality sector, such as bellhops, concierges, and front desk services, along with the skills required and current skill shortages. It includes PESTLE and SWOT analyses, focusing on the Intercontinental Hotel Group, and concludes with an assessment of current and potential trends shaping the industry's future.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of business within hospitality industry and diverse products and services
they offer ....................................................................................................................................3
P2 Range of operational and functional departments ................................................................5
P3Contribution of the hospitality industry to local, national and international economies........6
TASK 2 ...........................................................................................................................................7
P4 Range of different operational roles within the hospitality industry.....................................7
P5. Skills required for the different roles in a hospitality industry and shortage of current
skills............................................................................................................................................8
TASK 3 ...........................................................................................................................................8
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry. ...........8
P7 SWOT analysis of Intercontinental Hotel groups .................................................................9
TASK 4 .........................................................................................................................................11
P8 Current and potential trends in the hospitality industry.......................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
The hospitality sector is one of the largest profitable sectors in the industry. The main
objective of this industry is to provide quality services to the clients and customers (Dogru, and
et. al., 2019). The industries in this sector can only flourish and grow if they are increasing the
quality of services they are providing to the customers. The hospitality sector must provide
services that include new technologies and techniques so that satisfaction level of customers is
very high. This industry is also known as service based industry as these companies depends
upon services given to customers. This industry has a big contribution in GDP of the world and it
also helps in increasing the employment opportunities across the world. The service industry
used in this report is Intercontinental Hotel. This is public limited company which was founded
on April, 15 2003 by Christopher Marshall. The headquarters of this company are situated in
Denham, England, UK. This company owns a few resorts and hotels. In the following report
different types of business and range of operational, functional departments are described. This
report also explains about current and anticipated skills of hospitality industry. This report
consists of PESTLE and SWOT analysis of the service sector industry. At last this report
describes analysis of current, potential trends and developments which affect this industry.
TASK 1
P1 Different types of business within hospitality industry and diverse products and services they
offer
Hospitality industry is a part of service industry which comprises of various businesses with
large number of products and services offered. This industry primary depends upon the
availability of money, leisure and time. Thus various businesses in service industry are
mentioned below:
1) Lodging and Accommodation: Accommodation and Lodging sector is a part of hospitality
industry with associates with luxurious hotels, resorts and motels etc, where as
accommodation is a broad term which is exclusively used for food, a place to stay and other
basic facilities needed for sustenance (Dzhandzhugazova, E. A., and. et. al., 2016). This
sector can further be decided into three under mentioned sections:

a) Lodges: These are basic stay facilities to passengers were travelling from one place to
another with basic amenities. These mostly provide a comfortable night stay to the
travellers. Thus a lot of people book lodges to stay.
b) Suits: These are luxurious rooms offered by hotels to individuals for a comfortable extended
stay (Goh, and Jie, 2019). These can be really expensive as they come with the best facilities
the hotel has to provide and hence it is generally booked by posh travellers.
c) Resorts: These are becoming intensively popular among people these days. These are
basically hotel situation in beautiful mountains or beaches, generally places close to nature.
These provide people with rejuvenation and relaxation away from city life.
2) Food and beverages this is the largest sector in the hospitality department it generally includes
this entire establishment which provide processed food beverages meals and snacks to the
people. This sector also has various parts which are as follows:
a) Quick-service establishments: These provide snacks to customers looking for or a quick
meal. Over the recent year these have become increasingly trendy and have been attending
more and more customers.
b) Catering business: this section of the hospitality department provides food, beverages and
drinks at special occasions like weddings birthdays and many other parties. It also
contributes to a large section of the food and beverages department.
c) Full service restaurants: these are the largest part of the food and beverages department.
They provide full multi course meals, drinks and other services to customers with waiters to
tend to their needs and render services to them.
3) Travel and tourism this is the backbone of the hospitality industry it includes travelling for not
only leisure but also for work, business and other reasons (Jones, and et. al., 2016). There
are many parts of the sector some of them include cruise airliner companies, Road travel
companies etc.
4) Entertainment industry: this part of service industry is becoming increasingly important. In
order to have a good vacation and genuinely enjoy, this sector is very important. This sector
includes activities such as gaming, adventure sports, night clubs, pubs sports etc.
5) Timeshare: this sector of the hospitality industry has been recently graining its importance. it
includes ownership of a property or a place for a limited period of time thus a single
property can be shared by multiple companies or individuals during different parts of the

year. Places like convention centres villas, resorts and beach houses are commonly available
for timeshare.
P2 Range of operational and functional departments
In a service sector industry there are several departments which have different roles and
responsibilities (Kandampully, J., and et. al., 2015). In context of the intercontinental Hotel
there are a wide range of operational and functional departments in this hotel. Some of the
operations are described below-
Operational Departments
It is essential for The Intercontinental Hotel Group to run business successfully if there
are no availability of resources and good employees who work effectively. The different
operational operations of this department are mentioned below-
Housekeeping- This is an important function of the hotel industry. The main aim of this
department is to provide quality services to customers and this is done by keeping the rooms of
hotels clean and hygienic. When guests leave their rooms it is ensured that their rooms are
cleaned and net. Other functions which are included in housekeeping includes checking that each
and every hotel room is tidy as in all sheets are cleaned, washrooms are cleaned, towels, brush
and bath kits are placed in right manner, etc.
Accounting- Accounting is also an important function of the organisation. It is essential for
any company to plan effectively about the budget, money, revenue and profit of the business for
keeping a track on success of business. The accounts department is accountable to executive
team and help them in providing relevant information. This department supports various
departments by giving them money for performing activities.
Front Desk Services- This department helps in conducting constant interaction with
customers or guest and knowing about their plans and bookings for rooms. This service mainly
focuses on for authentic information of guests and clients and tells them about rooms
availability, facilities, etc (Kim, and et. al., 2015). this ensures to provide satisfactory services to
them and enhance the level of the happiness among customers by fulfilling fulfil their
expectations.
Functional Departments
1. Human Resource Department- This department of Intercontinental hotel group is
responsible for recruiting, selecting, training and development. The human resource is the

most important asset of any organisation and it is important for the companies to motivate
their employees and make their service better. Employees are motivated by giving them
incentives and benefits.
2. Finance Department- This is an essential and most important department of the
organisation. All other departments of the company need help of this department for
performing activities and operations (Lopes, 2016). Money is required in each and every
activity of business and hence the managers of Intercontinental Hotel manage the amount
of fund of the company in an appropriate manner.
3. Purchase Department- The purchase department is linked with finance manager. This
person takes money from the finance department for purchasing raw materials and
transport. The managers of purchase department are accountable to finance manager and
sales manager.
P3Contribution of the hospitality industry to local, national and international economies
The hospitality industry is booming at an accelerated pace which results in massive
growth in international, national and local economies. This sector contributes majorly in the
gross domestic product, employment, economic development our national income. Increase cash
flow is generated when a tourist spend the money at hotels, restaurants and places of
entertainment along with indirect effects on the pharmaceutical industry, retail goods industry
and local craft industry. These also lead to development of public infrastructure such as public
transportation and roads (Penela, and et. al., 2019). Hospitality industry provides a large number
of employments to people of UK. In 2017 alone 2.4 million people were employed in the
hospitality industry making it the fifth largest industry in the country. The revenue generated by
this industry was in the ballpark of 90 billion pounds which has completely contributed to the
GDP and the gross national income of the country. Apart from this around 53900 jobs were
created in the restaurant industry. The total contribution of this sector to the GDP and the
national income has been around 34 billion Euros in the year 2017. The hospitality industry also
helps in increasing the per capita income of the country by providing such huge number of jobs
to the people. This raises the standard of living of people in the country thus increasing the other
sectors growth by increasing cash flow. Sectors which are directly or indirectly affected by

hospitality industry include various business sectors like shopping travelling adventure sports etc
resulting overall and economic development of the country. International tourism also helps the
country in a great way. The value of pound is kept constant by intensive foreign exchange
provided by the international tourist moreover air travel is intensively expensive and provides
money to the Airways, travel and tourist industry. The local economy is also uplifted by
international shoppers as they tend to shop more extensively does increasing the revenue
generated by the local economy.
Moreover licensing and franchising has major contribution in developing global
hospitality brands in UK this not only generates high level of taxes for the country but also
improve the overall economic condition of UK.
TASK 2
P4 Range of different operational roles within the hospitality industry
There are different operational roles of the hospitality industry and some of them are
mentioned below-
 Bellhop (Housekeeper)-This is a person who takes care of the guests and providing him
information about hotel facilities (Porcu, and et. al., 2019). This individual also escorts
customers to hotel rooms. This person is involved in assisting luggage of customers or
guests, gives information for services and facilities such as dining area and time,
entertainment and hotel attractions. These people also take care about safety, security and
satisfaction of their guests.
 Concierge (Travel agent) - These individuals are responsible for activities that are
related to travel and tourism of big groups. Concierge or travel agent assists the guest or
customer about planning of the trips and travelling and also regarding tickets and fares of
whole travel plan. Different customers want different kinds of places to visit and travel.
 Front Desk Services- This is also an operational role of the hospitality industry. The
front desk service individuals help the customer in providing information about facilities
of hotel. The person at front desk is an individual who represents the hotel as he is the
only person with which first interaction of guests happens. Thus this person should
respond in an effective manner. These individuals have to handle request and queries of

different customers. The role of these front desk operators is to provide a detailed
orientation of hotel. These individuals must maintain records for data and information of
guests and customers.
P5. Skills required for the different roles in a hospitality industry and shortage of current skills.
The hospitality industry is majorly diversify and throughout the world as this as this has various
roles in beverages, hotels, food, travel and so on. Just to be successful in this industry one needs
to be equipped with various specialisations such as:
1) Flexibility skills: Hospitality industry is an industry with no fixed working hours thus
employees have to be extremely flexible with the working as per the need there provided in
fulfilling respective job responsibilities.
2) Communication skills: communication skills are very important in the hospitality
industry employees and managers have to interact with people from various backgrounds
nationalities age groups and nature. Hence effective and efficient communication skills are
required.
3) Multitasking abilities: An employee in the hospitality industry is expected to manage
work and efficiently commit to various different roles (Radojevic, and et. al., 2015). Thus
becoming knowledgeable and specialised in various job roles in hospitality industry is required.
It is also beneficial for promotions and career options.
TASK 3
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry.
The various factors that affect the development in hospitality industry are as follows:
 Political Factors- Political factors contribute majorly in development of hospitality
industry as factors such as policies, tariffs, taxes etc are all controlled by political factors.

 Economic Factors- Economic factors also play a major role. These factors include
taxation levels, unemployment rate, inflation rates etc.
 Social Factors- the correct social environment is essential for growth of any industry in
a region. Hospitality industry largely depends on it. Factors such as beliefs, lifestyle
demographics etc are very important (Roma, and et. al., 2019). If the demographics are
correct then the organisation can depend on local work force, cutting down the costs of
operations majorly.
 Technological Factors- the demand for hospitality industry directly depend on these
factors. With better technologies in hand the hospitality industry can serve the clients
better using various tools like customer databases, IoT etc.
 Environmental Factors- With a large boom in eco tourism all the organisations are
shifting to more eco friendly alternatives. No organisation wants to ruin the natural
harmony of the region as it would result in decrease in tourism.
P7 SWOT analysis of Intercontinental Hotel groups
STRENGTHS
 The Intercontinental hotel group is
presented in around 100 countries and
around 766837 rooms. The priority
markets of this Hotel are situated in
Middle East, Germany, UK, Canada,
India, Russia and US.
 Intercontinental Hotels Group only
hires skilled and knowledgeable people
who can work hard and attain the
targets and goals of the organisation
(Segovia-Pérez, and et. al., 2019). The
employers have to provide effective
trainings and development sessions for
WEAKNESSES
 The financial Planning of managers of
Intercontinental Hotel is not efficient
and effective.
 Intercontinental Hotel Group is a
leading brand and still it faces various
several challenges while establishing
market in other countries.
 As company is planning to expand their
business operations so there is
requirement of huge investment for
latest technologies.

employees so that they will be able to
provide quality services to customers.
 The intercontinental Hotel Groups have
high level of customer satisfaction and
retention as managers are dedicated
towards effective customer relationship
management.
OPPORTUNITIES
 There is an increase in users of
internet all over the world and hence it
is an opportunity for Intercontinental
Hotel group to enhance its business in
external markets (Su, and Reynolds,,
2019). Skilled workforce is hired by
the managers of this hotel to provide
quality and good services.
 This hotel can use internet for
promotion of products, sharing
information with customers and for
collecting feedback. The various social
media platform which are used include
Face book, twitter, and Instagram.
THREATS
 As Intercontinental Hotel Group is
operating at a global level and it has to
face many economical and political
fluctuations while doing business
across the world.
 The main threat of this company is the
cultural and social difference that arises
because of the beliefs and values of
different people.
TASK 4
P8 Current and potential trends in the hospitality industry.
Current trends in hospitality industry
 Customers and people around the world are more prone to travel the world and spend
their leisure time in going to exotic vacations or holidays. This resulted in increases of the

international travelling of people. Globalisation among countries has helped in reducing
the barriers and hurdles that take place while people travel to abroad.
 There are different threats related to safety and security of individuals like theft,
kidnapping, terrorism, etc. people and customers are not travelling because of such
reasons and therefore it is the responsibility of managers of hospitality sector to take
initiatives for increasing the safety and security of customers.
 Hospitality industry is known as the most diversified industry which has to deal with
employment and the number of tourists. This helps in providing opportunities to the hotel
industry in knowing about the various opportunities and threats that affect which are
present. These companies can easily understand the cultural, social and economic
variations that affect a business.
 There is a need of providing opportunities to people who are working efficiently and
integrating the services for better results. In the present scenario, the organisations of
hospitality industry are using information technology for accomplishing the tasks and
activities of the business. If a company is adopting new techniques and technologies in its
organisation then customers are more satisfied and happy.
Potential trends in hospitality industry
 Recognition Technology- One of emerging trend in hospitality industry is Recognition
techniques which is used for making customers feel good and satisfied.
 Robots- The organisations of hospitality industries have adopted robot technique for
serving and offering customers a good experience (Teng, 2019.). In Intercontinental
Hotel Groups robot technology is used for serving dinners and delivering snacks.
 Big Data- The collection of data is increasing day by day by industries as this further
helps in providing more personalised and customised experiences. This helps travel
agents of Intercontinental Hotel groups for providing suggestions for travel destination
based on budget, gender, age, previous visited locations.
CONCLUSION
It has been analysed from the above report that hospitality sector is the fastest growing
sector in industry. This provides good returns on investment of the owner. This report helped in
understanding the role and responsibility of all departments of the company. This also tells about

the scope, size and structure of the organisation. A good understanding of different types of
products and services being offered by hospitality industry is important. It is important for
organisations of hospitality sector that they should perform PESTEL analysis before starting
business in any country as it will help in knowing about the impact on business because of
political, economic, social, technological, legal and environmental factors. A SWOT analysis
helps in analysing the strength and opportunities of the business and what are the current and
potential trends which help in growth and development in hospitality industry.
REFERENCES
Books & journals
Dogru, T., and et. al., 2019. Employee earnings growth in the leisure and hospitality
industry. Tourism Management, 74. pp.1-11.
Dzhandzhugazova, E. A., and. et. al., 2016. Innovations in hospitality industry. International
Journal of Environmental and Science Education.11(17). pp.10387-10400.