Contemporary Hospitality: Business Analysis and Industry Report

This report provides a comprehensive analysis of the contemporary hospitality industry. It begins with an overview of different business types within the industry, including food and beverage services, lodging, and accommodation, detailing their offerings. The report then delves into the operational and functional departments of a hotel, using The Savoy as a case study, and explores organizational structures. It highlights the skills required for various employment roles, addressing current skill shortages. Furthermore, the report includes PESTLE and SWOT analyses of a selected organization (Hilton), and concludes with an examination of current and potential trends shaping the hospitality landscape. The report provides valuable insights into the industry's complexities and future directions.

Contemporary

INTRODUCTION...........................................................................................................................1
TASK A...........................................................................................................................................1
P1 Different types of business within hospitality industries and their offerings........................1
P2. Operational and functional departments of hotel..................................................................4
TASK C...........................................................................................................................................7
P5 Skills required for 4 different employment roles and relevant current skills shortages........7
TASK D.........................................................................................................................................11
P6 PESTLE analysis of organization........................................................................................11
P7 SWOT analysis of Hilton.....................................................................................................15
P8 Current and potential trends in hospitality industry.............................................................16
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Hospitality is a broad category of department within service industry which includes such
as lodging, event planning, theme parks, transportation, travelling and additional fields within
travel industry. Their main objective is to serve customers with best facilities and
accommodations in order to gain their trust and loyalty for establishing positive image at
marketplace (Kusluvan and et. Al., 2010). Hilton hotel is a most successful and well established
brand which is famous for its qualitative and on time delivery. This project report is going to
examine specific information about various types of business within hospitality industries and
their offering. Apart from this, operational as well as functional departments of hotel are also
discussed in this project. Therefore, assignment is going to highlight necessary distinct roles and
relevant skills which is required for employees while working at hospitality organization.
Additionally, PESTLE and SWOT assessment is also outlined in the project for understanding
the company. At the end, potential and current trends are also framed further for analysing the
changes which is incurred at marketplace.
Hospitality industry is the large sector which has huge contribution in the growth of an
economy of nation. There are many kinds of businesses which are included under this are related
to travel and tourism, hotel, restaurants, accommodation facilities etc. Mainly it helps in
developing society and infrastructure that may contribute in improving economy of the nation.
TASK A
P1 Different types of business within hospitality industries and their offerings
Hospitality Industry:
Hospitality industry refers to services that help in entertained guests and visitors. The
main aim of this type of industry is to provide quality services to their customers as per their
needs and wants. Mainly hospitality industry includes restaurants, hotel, resorts and many more.
This industry plays a vital role in the growth of country. It builds a relationship between guest
and host. As there are various kinds of business which come under the hospitality industry.
These are as follows:
 Food and Beverages industry
 Lodging- Accommodation
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 Camping grounds
 Holiday and short-stay accommodation
 Licensed restaurants
 Licensed clubs
 Take away food shops
 Unlicensed restaurants
Food and Beverage Services:
The food and beverage are as old as human itself. It is a category of business that is
complex global collection of diverse industries that looks in food processing and food service
and hospitality. Basically, it is defined as the art of supplying food and beverage services away
from home or to the home but processed at elsewhere. The food and beverages include the
restaurant, bars and pub. They provide the various offering to customers which are as follows:
Restaurant:
Restaurant is a business which prepare and serves the food and drinks to customers for
money. It provides the tangible services to its customers. As generally these services are
provided within premise but now days take away services are also there. It is managed by a
manager known as restaurant manager who take care about grievances of customers and handle
the staff. The responsibility of managers includes:
 Fine dinning
 Theme
 Ethnic
 Quick service
These are several duties of a manager which one needs to perform.
Bar:
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Bar is a retail business that serves the alcoholic beverage like wine, beer, liquor etc.
Basically, people visit the bar to enjoy the free time with their friends and belongings.
 The high concept Bar
 The hotel Bar
 The Live Music Venue
 The Sports Bar
Pub:
A pub is licensed place to sell the alcoholic drinks, soft drinks, meals and snacks. Since
pub offers the complete food so it can be called a restaurant also, where families and friends
come together for eat and drink.
 The Neighbourhood Dive
Lodging – Accommodation:
This sector of hospitality industry features from luxurious hotels to lavish resort and
camp grounds. Accommodation is a broad sector of the hospitality industry, ranging from bed
and breakfast enterprises and hotel. The hotel is basic which comes under this.
Hotel:
Hotel is a place where the accommodation, food and beverage service available and guest
pay the rent for staying in the room and for taking those facilities is called hotel that provide
services to their guest. Basically, these are held out by proprietor. And offers the facilities like
food, drink, sleeping accommodations etc. People can live in hotel as long as they want by
paying rent. As it is managed by the skilled peoples. Hotels always manage by the one who has
the good skills. It allows the people always manage by the one who has the good skills. It allows
the people to organize the conferences, seminar and parties at hotel.
 Conference hotel
 Convention hotel.
 Resort
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 Budget hotel: These are said to be those hotel which are marked as normal types of
hotels that are in the income level of the normal people. As the name these hotel provide
very basic facilities and amenities to their visitors.
 Mid-market hotel: It is known as branded hotel that are used to describe three star ranks
in the hotel market. Such type of hotels is basically valuable to the middle class guest that
is usually book for trips or any specific occasion.
 Luxury hotel: It is considered as those hotels that are provided luxurious
accommodation facilities to their guest. They are generally ranked as 5 star or 4 star hotel
types. There are certain fixed standard for these types of hotels as per the upper class of
people.
P2. Operational and functional departments of hotel
The Savoy is a five-star luxury hotel in United Kingdom. It established in the year1889.
It has 268 rooms including suites and has 7 restaurants in the hotel. As one of the first luxury
hotel in Landon, The Savoy set a new standard for technology, comfort and luxury. It was the
first to feature electric lifts. Guest rooms were connected by the speaking tubes to various parts
of the hotel. The 1900s were year of extravagance and exuberance and, The Savoy parties and
balls became legendary. It entered in second century with the same style and enthusiasm that had
characterized its first. It follows the tall organisational structure.
Organisational structure: It is defined as the system that is used to define a hierarchy
within an organisation. There are basically main four type of structure in organisation that is
functional, divisional, matrix and flat (tall). A tall organisational structure is one of the main
important for business structure as it is related to time testing and effectiveness to the
organisation. This type of structure allow the manager of Savoy to make crucial decision related
to operational strategy and them communicate these decision to other section of hotel such as
housekeeping, food & beverages, cleaning staff. This would be beneficial for them as it increases
the functional and satisfy in more effective customer.
Operational department of hotel: Savoy is one of the most popular Hotel of . This hotel
has different operational department such as, executive, front desk services, housekeeping etc.
that help in easy functionally and provide satisfactory services to their visitors.
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Housekeeping: This is the main services that make customer feel comfortable and satisfy such
as clean room, easy approach of food at customer request, cleanliness of the sheets to maintain
toiletries stocked.
Front desk services: This department is related to handling of visitors, constantly contact
with the guest at first level. This process is related to providing a detail information about hotel
and another functional department available within hotel.
Executive: These are the decision maker within the business and these are department
head of various sections, manager. They are the one responsible for various other function of
hotel such as accounting, marketing etc.
Functional department of hotel
Food and Beverage operational of hotel:
Food and Beverage operational of The Savoy hotel is responsible for the efficiently
supply of food and beverage in the hotel. It is the basic thing which are needed by the customers.
Service department:
Service department in the hotel helps in effective and smooth supply of food and
beverage. This department provide service to its customers time to time according to the
requirements.
Finance department:
Finance department of The Savoy hotel manage the finance related activities. It provides
money to future expansion. It also provides money for day to day expenses for purchasing the
food and beverage.
Security department:
Security department of The Savoy hotel maintain the proper security in the hotel and it
feels the people safe.
Organisational structure of Savoy hotel
Savoy hotel organisational structure is hierarchical because of massive size of business that
serves approx. 140 million guests (JOHNSTON, CLARK and SHULVER, 2012). It is a way in
which organisation is structured that uses different level of authority and vertical link. In this
structure, higher level control lower levels of hierarchy. It is in a pyramid structure.
The organizational structures of The Savoy hotel follow the tall structures. These types
of structure permit the organization and leaders of top level of Savoy hotel to make major
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decisions of organization regarding operational strategy and then exchange all those decisions to
upper level and mid-level managers. A various level of authorization for different action taken
by managers is offered by tall organizational structures. This type of structures assumes that the
employees of junior levels do not have much knowledge required for the decisions of the
company.
Operational Departments of the Savoy hotel:
 Dining: It is one of the integral parts of this particular hotel. Savoy offers informal dining
in a stylish art Deco settling. It present grill menu with a French touch facilities to their
guest.
 Bars: For the alcoholic people, Savoy hotel boasts the American bar which is the oldest
surviving cocktail bar in the London. It is one of the 50 best bars since 2017 and award
wining beaufort bar in that particular country.
 Shopping & spa: During the time of stay, guest can visit Savoy tea for bespoke gifts and
a unique range of patisseries as well as teas. In their beauty and fitness areas these types
of services are provided by the hotel to their guest.
 Room and suites: The Savoy hotel used to provide 267 luxury rooms and suites
featuring either elegant English Edwardian design art Deco style. Those staying in suites
enjoy full dedicated butler services that are offering the discretion of a tradition English
butler with efficiency of 21st century personal assistant.
Functional department:
 Security: This particular department is working with the motive of providing proper
safety and security their guest bags and their other items. There are various CCTV
cameras and other checking system that are monitor by this department.
 IT: This specific department is operating in accordance with providing all the bookings
and payment options that are made by the guest while booking their rooms or availing
their accommodation services.
 Finance: It is one of the crucial departments that is responsible for providing all kind of
funds requirements that are needed by the Savoy hotel. As, capital is needed to plan
various projects of the hotel. It can also help in preparing arrangements regarding the
book or creating attractive ambition.
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 Maintenances: As this department is more valuable for the hotel as all kind of control
and proper regulation of the services are monitor by visiting to each guest. The feedbacks
and reviews are taken after the accomplishment of the trip from the visitors.
 HR: This is related with selecting right staffs and members such as cleaning, managers
and other workers at the right time. The HR tends to organise all sort of essential
requirement that are demanded by the guest from them while visiting to their hotel.
TASK C
P5 Skills required for 4 different employment roles and relevant current skills shortages
Hilton hotel is an American multinational hospitality organization which engaged in
managing and franchising a wider portfolio of hotels and resorts in order to expanding their
business operations at global platform. Thus, company is having a positive goodwill at
marketplace because of its qualitative services and brand image at marketplace. Therefore,
company is having large number of staff members in distinct branches which are playing
numerous of roles and responsibilities in the organization. In fact, company is following suitable
procedure for hiring their employees by analysing necessary eligibility and qualification which is
required for certain job role (Chang, Gong and Shum, 2011). Therefore, some of the relevant
employment roles of Hilton hotel are discussed as follows-
Hotel manager- Managers are really indispensable for the proper management of whole
organization at operation level. In fact, it helps in ensuring that there is a minimum chance of
mistake and assigned job to every manager of other departments in order to attain set objectives
goals in a defined time frame. Thus, some of the necessary skills are required for becoming a
manager of whole organization such as;
 Effective communication skills- It is essential for manager to have knowledge of
communicating with others in order to express views or opinions in front of staff
members. In fact, this will help manager in managing business activities in a better
manner by satisfying the needs or demands of employees as well as customers too.
 Leadership abilities- One of the most essential capabilities which is required to manager
is to lead a team in effective manner by having positive relations with each and every
employee. Along with this, this ability helps in proper functioning of whole operations by
assigning job to the employees as per their skills and abilities.
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 Capability of motivating others- Manager of organization is liable for encouraging
other staff members to continue the business for longer time period. For example; teach
other head departments about the technique of convincing employees and how to
encourage them towards certain objectives ( Buhalis and Crotts, 2013).
 Ability to make effective decision- Managers are liable for managing all the related
activities due to which they get involved in number of complex situation where they need
to take instant decision. It means, managers have to be very clear towards their judgement
because all the departmental staffs are depending upon them only.
 High level of confidence- This factor is one most indispensable element which aids an
individual to perform all the business activity in corrective manner. In fact, manager of
large enterprise are revolve around numerous of situations where they need to be very
confident in order to handle that circumstance in suitable way. For example; while
dealing with customers, suppliers, clients and many more. There are various financial
planning skills which is needed to be use by the Savoy hotel in order to deal with the
complex information that are comes in front of them. It can be related with analytical or
interpersonal.
 Risk taker- Business are uncertain because fluctuation in internal and external factors
might incurred at any time without any indication which may further affect the success of
an organization. Therefore, it is essential for managers to be prepare for unusual
situations.
Front office manager- Reception is a place where customer entered first for asking any
queries, reservation, and suggestion and so on. It means, manager for front office is liable for
make sure that all the things are properly managed, and works are allotted to each employee as
per their skills. As a result, company get succeeded in creating positive relations with customers
because management of front office is observed by consumers while selecting hotel. Therefore, a
person who is managing front line needs to learn the ability of impressing clients by fully dressed
with attractive personality as well as know how to behave with end users. In Savoy hotel it is
primary duty is to make sure that the front office is the areas where guest initially comes into
contract with the hotel and staffs and resolve all the query that are asked by the guest.
Food and beverage manager- Food is a first priority for every individual whosoever is
staying at hotel but management of beverages in large hotel is really a complex job because it
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helps in converting negative feedback into positive one. Therefore, it is essential for company to
focus on their catering services by delivering tasty food to their customers in a defined time
frame. Thus, it is only possible if manager of food or beverages are properly managing food
services ( Testa and Sipe, 2012).
Restaurant and food service manager- Serving to a client is priority task for hotel
industry because entire hospitality sector is stand for their best services to end users. Therefore,
there is also a manager for managing a food services in the restaurant of Hilton in order to make
sure that every individual is having their food in a given time frame. Along with this, liable for
ensuring that none of the client get disappointed during having food at restaurant by behaving a
polite manner.
Lower position: It is considered as the staff or waiter level position whose role is to take
care of their guest in terms of providing all sort of services related with service delivery. They
are basically responsible for serving their best efforts that are demanded by the guest from the
hotel.
Apart from this, there are some other roles are identified at workplace as per the levels or
might be in hierarchical position such as; top most authority, middle level managers and
supervisors or lower level staff, leaders, head and many more.
Top level Authority
Middle Level Department/Authority
Lower Level Members
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 Top Level Authority- Board of directors, Managing Director, Trustees, Investors and
various other assistant heads are identified which are falls under this employment role.
 Middle level- Managers are considered as middle level of employment and playing their
roles as per requirement. For example; Supervisors, managers, leaders, staff head,
employees of high qualified and many more members are there at workplace which
comes under this.
 Lower level- These are the members who works on the order to middle level of staff as
members of middle level is liable for managing lower level. For instance; Waiter,
laundrymen, cleaner and so on.
Hence, these are some necessary employment roles which is required for Hilton hotel
because this association is famous for their services at global platform. Along with this, always
tries to serve their customers in best positive manner by fulfilling the needs of users as per their
requirement. But at the same time, it is also observed that there are some shortage of skills in
various manager due to which they get failed in fulfilling all their assigned duties and
obligations. For example;
 Absence of politeness in managers- Managers are not that much polite while dealing
with employees and sometime become rude which is somehow essential also but still
politeness is required while managing staff members because all the activities are
accomplished by them only. However, there is a major reason behind rude behaviour of
manager such as; he/she might don’t know how to treat others, absence of experience,
knowledge and many more reasons are there from which some are personal but few are
professional also.
 Delivery issue and lack of coordination between two managers- Because of large
enterprise, somehow delivery of food services gets late which shows the mismanagement
of service manager as well as beverages manager too. It means, lack of cooperation
between these two managers are identified which is really not good for the success as
well as goodwill of an organization (J. Harrington and C. Ottenbacher, 2011). This issue
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