Contemporary Hospitality Industry Report: Capital Hotel Analysis

This report provides a comprehensive analysis of the contemporary hospitality industry, using Capital Hotel as a case study. It begins with an introduction to the hospitality industry, its objectives, and the selection of Capital Hotel as a representative example. The report then explores different types of businesses within the hospitality sector, including accommodation, restaurants, pubs, and bars, and examines the relationship between the hospitality and travel and tourism sectors. It also differentiates between the tangible and intangible aspects of the industry. The report delves into the operational and functional departments within a hotel, specifically focusing on Capital Hotel's housekeeping, food and beverage, marketing, sales, and human resource management departments. It discusses the contribution of the hospitality industry to local, national, and international economies, highlighting the interrelationships between operational and functional units. Furthermore, the report examines the impact of franchising and licensing agreements on global development and the economic worth of the industry. It explores various operational roles within the hospitality industry, including front-line managers, back-office management, supervisors, and production roles, while also inspecting the skills required for these roles and identifying current skills shortages. The report concludes by emphasizing the importance of decision-making and technical skills in the hospitality sector.

Contemporary
Hospitality Industry
1

2

3

INTRODUCTION
Hospitality industry is the broad category of fields within service industry that involves
lodging, food and drink service, travel and tourism, event planning, and others that can help to
develop the organizational performance. This is important for each business organization to
understand what is running in market and how to influence the number of customers effectively.
The management is require have proper understanding what customers wants and how they can
be satisfied. The main objectives of hospitality industry are to provide customers with enjoyable
experience (Zhao and Guo, 2019). To understand about hospitality industry and its services
Capital Hotel has been selected that is historic hotel at 111 West Markham street in Little Rock.
The management of organization understand the requirement and provide the products and
services. This can help to develop the organizational productivity and profitability. The report
covers different types of business in hospitality industry, operational and functional department,
Licencing, skills requirement for role in hotel industry. Moreover, it involves impact of skill gap
that uses to run the business.
LO1 & LO2
Discover a number of different types of business
Hospitality industry: This can be explained as category of service which is provided to
people by providing food and drink, room service, lodging. Theme parks, and event planning that
can be used to develop the organizational performance. In hospitality sector, different types of
services are providing by management as per requirement which can help to manage the each
function and activities. In relation to Capital Hotel, range of products and services are provided
to customers which can help to managing the higher performance. The category of products and
services are explained below:
Accommodation - This can be explained as services that are provided to customers for the
purpose of making feel them good. This involves overnight staying, sheltered, and sending time
with family and friends which can help to develop the organizational performance.
Restaurants – This can be explained as place where people pay to sit, eat fast food, meals
and others that are cooked and served on premises. This is important for organization to
introduce the different kind of food services which can help to develop the organizational
productivity (Murillo, and King, 2019).
4

Pubs - This can be explained as proper infrastructure and interior where beers, drinks and
fast foods are available and provided to their customers. This can help to bring different types of
services which can develop the organizational performance.
Bars - This defined as beers and drinks bar place where people comes and visit to spend
their time and enjoy the drinks with day and night music.
Night clubs – This states as entertainment place which is open from the evening till the
morning and enjoying by people. This can help develop the productivity and profitability.
Hospitality and food service provider: This means businesses concerns who are involved
in providing food and services for the purpose of gaining number of passengers and develop the
brand image.
The relationship between hospitality and travel and tourism sectors
The hospitality sector and tourism sector are interrelated sector as both are providing the
hotel and travelling services. When customers decided to go outside then they book the travel
and hospitality industry that can help to provide the different types of services and products. This
can help to increase the organizational performance and productivity effectively.
The tangible and intangible nature of the hospitality industry
Tangible nature: In context to capital Hotel, hotel rooms, foods, drinks, chair, interior and
exterior design is consider is tangible nature that can help to develop the organizational
performance.
Intangible nature: This explained as products which cannot be see and touch is considered
as intangible. In relation to Capital Hotel services are different which are providing by
management in order to increase satisfaction level (MacKenzie, and Gannon, 2019).
This pertains to items and services given by hotels that are intangible and cannot be seen or
touched. This contributes to increased consumer satisfaction by providing higher-quality
goods and services.
operational and functional departments within a chosen hospitality business
In hotels and tourism sector all activities and functions are running continuously where
management is responsible to provide the products. In relation to Capital Hotel, operational
department is maintaining the records of customers, solving problems of stock, delivering the
better quality of products and others which can help to develop the organization performance.
5

Figure 1Operational department, 2020.
Source: Operational department, 2020.
Operation department in Capital hotel:
Housekeeping department: This department is related to operational where housekeeping
services are provided to customers. In relation to Capital Hotel, room service, cleaning, hygiene
room and others that attracts customers.
Food and beverage: The food and beverage department of Capital Hotel, is following the
operational department by arranging the products and services which can help to develop the
organizational performance (Stylos, and Zwiegelaar, 2019).
Functional department in organisation:
Marketing and sales: For organization marketing and sales department are important
which used to develop the all functions and activities. In relation to Capital Hotel, marketing
department is used to promote the all products which can help to increase the organizational
sales. This attracts the high range of customers and develops the organizational productivity.
6

Production with HRM: To fill the vacancy and recruit the skilled person human
resource is playing important role who conduct the interview round to select right person. In
relation to Capital Hotel, Production and HRM department is managing all functions and
recruiting the skilled person which can help to attain the competitive advantages (Binder, 2019).
Discuss the contribution of the hospitality industry to local, national and international
economies
Hospitality industry is upcoming sector which is running in demand and maintaining the
different kind of services. This is important for each organization to focus on domestic, national
and international economies that affected the organizational performance and profitability. In
relation to Capital Hotel, hotel services are contributing in local, national, and international
economy that is defined below:
Local – This means that the hospital industry provides job possibilities to local residents
who spend local taxes and provide quality services, which can help to improve performance.
Locals have the opportunity to find a job and meet their financial expectations. Capital Hotel
contributes in Local economy by filling customer demand and paying local taxes.
National- in hotels, restaurants, and recreational areas that contribute to a robust economy
Furthermore, taxes are paid by customers, which helps to strengthen an economy's economic
position. In relation to Capital Hotel has locations all over the world and allows consumers to
book and pay for rooms online. Taxes are used for social welfare, such as education and
hospitals, which contribute to a thriving economy (Naumov, 2019).
International – In worldwide countries, the hospitality industry contributes by providing
work opportunities, charging tax, gathering currency, and improving people's living standards,
among other things, which helps to increase the economy and sustain strong performance. In the
context of Capital hotel, taxes, increased performance, adoption of new technologies, and
corporate taxation all contribute to a robust economy.
Thus, from the all discussion it can be explained that Hotel Capital is providing the
different types of accommodation and food products which can help to develop the
organizational performance and productivity. If business is operated in local, national and
international country then it contribute in taxes and economy.
7

Interrelationships of the operational and functional units
There is interrelation between operational and functional units in relation to Capital Hotel as
operational function is used by management to managing records of daily transaction and details
of customers. And functional units used to providing the hotel services to their customers which
can help to increase the sales of selected hotel.
Franchising and licensing agreements has influenced the global development
Franchise and licencing is defined as formal agreement which used by Capital Hotel to grow
its products and services in global market. By using this, it can enhance the business activities as
it give the permission to other to offer same kind of products by charging fees. This can help to
go internationally and attain the competitive advantages (Majid, Yasir, Yousaf, and Qudratullah,
2019).
How global growth, franchising and licensing developments have contributed to the economic
worth
The above discussion about franchise and licensing is legal term which used by business
concern for the purpose of developing its business activities and maintaining higher
performance. To develop the economic growth of local, national, and international country it use
the franchise where same kind of food products and staying services are provided. In relation to
Capital Hotel, Franchise is used by management to operate its business at national and
international economy where it pays taxes which used to road, schools, education and others so
that it contributes in economy. This can help to develop the organizational performance and
brand image by serving number of customers.
Explore a range of different operational roles within the hospitality industry
In Hospitality industry, employees are main assets of organization who understand the goals
of organization and give their contribution to complete the task. The management of Capital
Hotel, understand the requirement of their customers and provide the products which can help to
satisfy the customers and increase performance. This also gets positive response from their
potential customers by performing operational and functional roles (Line, and Hanks, 2019).
Types of labour and position in organisation:
8

Skilled: This refers to individuals who are educated and require a degree working in a
prestigious position in an organization and supervising all activities that contribute to increasing
the organization's productivity.
Semi skilled: This refers to semi-skilled individuals who are undergoing professional
training and require additional abilities to perform properly.
Unskilled: Those employees who are not qualified yet continue to work in positions that
allow them to contribute to organizational operations and performance.
The operational and functional role in IHG are as:
Front line manager: The role of front office manager playing important role as
welcome the customers and maintain the records of them, and provide them details which can
help to develop the organizational performance. The Capital Hotel, front line manager handling
all issues, receiving calls, and providing details and others which manages the all function.
Back office management roles: The management of back office playing the role of
keeping store details of all customers, storing information, managing data and providing right
information which can help to develop the organization.
Supervisory: Supervisors in organizations are individuals who monitor all activities and
record performance by evaluating it, which allows Capital hotel manager to identify appropriate
changes and improve the number of consumers. This aids in the successful operation of the firm
and increases production.
Production: It is a crucial function for organizations since it determines productivity and
competitive advantages by successfully administering all functions. In the case of Capital hotel,
the production and service departments play this role by providing a range of services to
consumers, which aids in increasing business performance and sustaining high productivity.
Inspect the skills required for roles and current skills shortages
Skills and knowledge is the important part of organization as it is used to develop the
organizational performance and productivity. Skill set is the collection of knowledge, ability and
performance which is used by people to improve their understanding and maintaining
performance. The employees who are working is having different skills that are as explained:
Hospitality skill sets:
9

Decision making skills – The employees and management who works in Capital Hotel is
require to have decision making skills which can help to manage the all functions and activities.
herein, all the decision are taken by employees and management which can help to provide the
best customer services to their customers (Ann, and Blum, 2020).
Technical skills – This skill is require to have specific changes and dealing with activities
which can help to provide the competitive advantages. If employees is having technical skills
then it will be good opportunity for business to grow their organization and attain the
competitive benefits. In relation to Capital Hotel, management is having technical skills which
used to promote its products and services, bringing new products, innovation, and reaching the
targeted customers.
Practical skills: This is another skill which possess by employees of capital hotel by
providing the better quality of hotel services. This understand the requirement and managing the
higher productivity.
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles
Drivers for skill gaps:
Driving skills shortage: This means lack of skills and knowledge which create the
challenges in working and affected the organizational profitability. In context to Capital hotel, if
employees are not good in communication, serving properly, and managing orders then it
reduced the organizational productivity.
High labour turn over: The another skill gap driver is increasing labour turn over that
affects the organizational performance. In relation to Capital Hotel, labour turnover is increasing
due to dissatisfaction, and not supportive behaviour of employees that affected the organizational
performance.
The impact that skills gaps have on hospitality businesses and make valid solutions for
addressing these skills gaps
Impacts on hospitality businesses:
Factors associated to business have affected the business, such as increased employee
burden, de-skilling of operations, product quality, high operating costs, and new working habits,
which can have a negative influence on the firm. Employee skills are crucial in the context of
Capital hotels since they can help to cope with circumstances that happen in the organization and
10

maintain the business (Chon, and Zoltan, 2019). To run a firm, management should supply
quality products and hotel services, manage information, and record client details, all of which
are fulfilled by skilled staff, which may have a good impact.
LO3 & LO4
Covered in PPT
CONCLUSION
From the report it can be concluded that hospitality industry is uses to provide the range
of accommodation, and food services which influence the number of customers and attain the
profitability. Bars, restaurant, club, and hotels are the types of hotel services which are satisfying
their customers. Skill set is used to introduce the different types of skills and knowledge for the
purpose of attaining goals and performing well. Operational and functional units are
interconnected which develop the organizational productivity and performance.
11

12