Contemporary Hospitality Industry: Business Analysis Report

This report provides a comprehensive overview of the contemporary hospitality industry, focusing on the multinational British hotel chain Whitbread. It examines various business types and the diverse product range offered, including accommodations, suites, resorts, and food & beverage services. The report analyzes the range of functional and operational departments within Whitbread, such as front desk, housekeeping, maintenance, and human resources, and explores the interrelationships between them. It discusses the hospitality industry's contribution to national, local, and international economies, highlighting the impact of franchising and licensing agreements on global development. Furthermore, the report investigates different operational roles, examines required skills, identifies skill gaps within the industry, and proposes solutions to address these gaps. The analysis includes the impact of global growth, franchising, and licensing developments on the economic worth of the hospitality industry. The report emphasizes the importance of understanding the industry's dynamics for effective strategy implementation and economic development.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Examine various business types in hospitality industry & diverse product range that is
offered....................................................................................................................................3
Analyse range of functional and operational departments in selected hospitality business. .4
State & discuss contribution of hospitality industry to national, local, and international
economies...............................................................................................................................5
Review the interrelationships of operational and functional units within a chosen
hospitality business................................................................................................................6
Explain how use of franchising & licensing agreements has influenced global development
of hospitality industry............................................................................................................6
Analyse how global growth, franchising and licensing developments have contributed to
the economic worth of the hospitality industry......................................................................7
Investigate a range of different operational roles within the hospitality industry..................7
Examine skills that are part of the hospitality industry..........................................................8
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles.....................................................................................................................8
Examine impact that skills gaps have on hospitality businesses and make valid solutions
for addressing these skills gaps..............................................................................................9
REFERENCES.........................................................................................................................11
Books & Journal:..................................................................................................................11

INTRODUCTION
Business is wider and broader which consist of different types of organisation like
medium, small and large enterprises (Ariella, 2021). Main purpose of this report is to
critically understand the importance of contemporary business environment in hospitality
industry. Whitbread, which is the multinational British Hotel, headquartered in England.
Hotel provides number of services example lodging, event management, wedding and many
more. There they have different types of competitors in market like Accor, IHG, etc. This
report comprises of number of different bases in hospitality industry, operational functional
department, contribution to hospitality industry to local, National and international level, use
of franchising and licensing agreements, range of different operational roles, skills needed for
roles within hotel, skill gaps within hotel sector, pestle and SWOT analysis and implication
of current and potential trends.
MAIN BODY
Examine various business types in hospitality industry & diverse product range that is offered
Hospitality industry comprises of different types of products and ranges of services on
the basis of which carry out their business activities and operations and also engage with
customers accordingly. In relation of selected hotel they also provide different types of
products and services to customers which are mentioned as follows-
 Accommodations- Accommodation is a type of a service which is given by the hotel
industry for those people who travel from one place to another and search for places
to stay. Accommodation services are available and provided by Whitbread across
many international countries (Dimitrić, 2018).
 Suites- Hotel industry also offers suites which also are considered as a part of
accommodation services but they consist of high luxury amenities. For example many
luxury brands provide this service such as Ritz, Hayatt and many more.
 Resorts- Resorts are also kind of services which provide different types of products to
customers in hotel. For example various types of services like drink food and
beverages, entertainment zone, shopping, fun activities etc.
 Beach resort- These are also trending nowadays as because it is a type of a service
which refer as a holiday lodging facilities and also provide seaside views with private
beaches and artificial swimming pools. Customers and tourist easily gets engaged
with this beach resort.

 Ski resort- With the changing period of time Hotel activities and services are
changing in which ski resort is also include which is basically are snowboarding,
skiing, and winter sport facility which is adhere by guest and tourist.
 Hotels- Hospitality Industry also comprises of Hotel sector which provide where is
and diverse range of products as well as services according to the needs and demands
of customers. For example decoration, event management, hotel rooms, facilities etc.
 Motels- Motels are those that are designed within a single building and have
connected rooms with each other with door facing parking, CCTV and a small
common area.
 Pub- Pub is a place where people enjoying with loud music food and beverages and
also love to dance with other people (Heimerl, 2020).
Food & beverage in hospitality sector
Food and beverages is also considered as a one of the largest sector and department
within hospitality industry which has been evolving with the different tools and techniques.
There are several types of services are also provided by this area for example unique
preparation of food, presenting it to customer etc. there are many different types of
companies which provide food and beverages services for example KFC, Burger King,
McDonald etc.
Analyse range of functional and operational departments in selected hospitality business
Operational departments: These are those types of departments that focus on main
operation and task activities of business. In context of Whitbread, they also have different
operation departments within their Hotel which are discussed below-
 Front desk services- Front desk services are department that are involved with
providing effective communication to employee’s customer guest and tourist. These
are mainly responsible for managing and handling all the room bookings and other
activities (Karabašević, 2019).
 Housekeeping departments- Housekeeping departments of those which are
responsible for managing and maintaining the room tidy as well as clean. They are
also responsible for keeping all amenities and details of room up to date.
Functional departments Whitbread- Functional departments are those who are actually
involved in the main functioning of hotel business and activities and also are responsible for
increasing productivity of a business.
 Maintenance- It is the main function department in which they are managing and
maintaining the tools machines and the equipment of a hotel whether they are
working in proper condition or not.

 Human resource department- Human resources department main activities is it to
select hire and recruit talented the applicants and individuals with an organisation who
are capable of providing benefits to hotel.
 IT Department- IT department is one in which main responsibilities consists of
protecting privacy and security of Hotel as well as customers and guest with use of
well secured network. In consideration of selected hotel, they have skilled technical
employees who fulfil their roles at all aspects (Khan, 2021).
Interrelationship between various functional and operational departments:
 Front desk and housekeeping- Front desk and housekeeping department inter-
related with each other. This is because housekeeping partners provide all the
necessary information and communicate this to front desk staffs what are amenities
and facilities are needed for update.
 HR and It departments- These are considered as function department and or
integrated with each other because it department is responsible for managing and
maintaining all the software tools and technologies that are used by hotel industry
within their management system and they came related to HR to make policies and
procedures accordingly.
State & discuss contribution of hospitality industry to national, local, and international
economies
It is essential to have a proper awareness about impact of hotel industry economy of a
country so that it is easy to implement strategies and adopt recommendations appropriately.
With proper market and social analysis contribution is determined and which is further
discussed as follows-
 National economies- The hospitality industry has a major contribution to national
economy of a United Kingdom because around more than 800 businesses are involved
and linked with Hotel sector and also UK national economy consist of 5% of GDP of
this sector. Moreover it has been stated hat in reference of chosen hotel they also
provide and give tax economy at large variant which leads to higher growth and
development (Li, 2017).
 Local- Local economies are those are part of specific communities. Hotel industry
also provide major contribution to these local economics because tourist man
engagement of people towards each other increases which leads to higher growth of
job opportunities and increases the awareness of a particular place which is beneficial
for economic development.
 International- International economics are those which lie in other countries and
carry on the activities within foreign on multinational countries. With changing needs

and demands of customers this sector is providing unique services products to
customers which lead to increase of their living standard at higher scale. Also it is
seen that contribution of hospitality industry towards international economy is rising
rapidly. Main contribution of inter Hotel industries that as they expand their business
at global level they use market entry strategies like franchising licensing which also
help in improving the level of economy at higher scale.
Review the interrelationships of operational and functional units within a chosen hospitality
business
Operational functional units within hospitality industry both are interrelated with each
other as because they work within a same field and have common desired goals which are
likely to be achieved within a specific time interval. In reference of Whitbread, hotel operates
at multinational level and has wide range of function as well as operational units.
Front office & Housekeeping- Front office and housekeeping department for
integrated with each other which are considered under operation department because
housekeeping as well as front office both work with use of effective communication and front
office responsible for providing orders to housekeeping department where housekeeping staff
is responsible for providing all necessary information to front office.
IT & HR- It is a functional unit of a Whitbread that focuses on securing and using
information in well secured manner of customer’s guest and tourist as well as employees.
Explain how use of franchising & licensing agreements has influenced global development of
hospitality industry
There are different types of marketing entry strategies which have a deep impact on
global development of industry because with the help of these strategies Hotel industries are
capable of executing their business activities and accordingly they needs and demands of
customers or guest.
 Franchising- Franchising is defined as a form of a market entry strategy and
distribution process which is used by businesses and in which the franchisor grant
permission to franchise to use their brand name or a product with their country.

Agreement directs impact on global development of hotel industry because when this
process is controlled by businesses it directly impact upon stakeholder and market
area of hotel.
 Licensing- Licensing agreement refers to kind of agreement it is defined as a process
in which enterprise authorises other company to use their licence to product for the
specific time period and use their intellectual property rights. This also effect upon
global development of hospitality industry because Whitbread also uses this licensing
and agreement through which they are able to expand their businesses activities and
also increases Goodwill of a brand into multinational countries.
From about discussed paragraph, it is in that franchising and licensing agreement have a
direct influence on global development of hospitality industry because these are mostly used
by hotels in order to expand their business activities and also it helps them to manage their
resources activities functions and operations in effective manner.
Analyse how global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry
Contribution- Both franchising and licensing are important for improvement
and development to the economy as well as hotel industry because they help in providing
execution of marketing as well as business activities in most effective manner with ethical or
legal procedures. Contribution of these two terms is discussed as follows-
 Franchising- Franchising is an important part of hotel industry as because it is create
and provide an economic output of 1.6 trillion across the globe. It is seen that in
tourism and hospitality industry franchising play important role in providing benefit
to both market as well as business at wider level. For example- Hotel which adapts
franchising as a market entry strategy is capable of generating more information data
services and employment opportunities to small and medium enterprises. It is a major
contribution which is provided by growth and development of franchising to hotel
industry (Olwan, 2021).
 Licensing- Licensing also deliver a major contribution to hotel industry as because
well licensing is used by Hotel industries it directly leads to development towards
economic because government services and authorisation are being required to use
market entry strategy which also results in establishing a positive relationship with
government association. This too leads to contribution to economic and hotel industry
because it results in improving the living standard of people.
Investigate a range of different operational roles within the hospitality industry
There are various ranges of different operational roles within hospitality industry which
are given as follows-

 Food and beverages head manager- It is operation role which is available in
Whitbread due to this on-going pandemic situation. There is a need for food and
beverages head manager and counter who will be responsible for handling the quality
at all aspects to deliver total satisfaction to customers.
 Housekeeping department manager- It is another operational role which is
important within hotel industry because a housekeeping department manager is
responsible for managing the cleanliness of a room and every single corner of area
(Peng, 2021).
Examine skills that are part of the hospitality industry
Skills in hotel industry are required at every aspect because without use of expertise
knowledge and skills it is not possible for hotel industry to manage their activities within
workplace. In consideration of Whitbread, they have a number of employees and number of
vacancies within the hotel for which different skills are needed and are examined as follows-
Operation manager- Whitbread which is the multinational corporation hotel industry
has wide vacancies within their management due to this on-going pandemic situation of
covid-19. For example HR manager of company is looking for operation manager who can
manage and handle their all different types of operation and production activities. Various
types of skills are preferred by HR for this role which are given below-
Skills-
 Communication skills- It is most important skill which is needed by operation
manager in order to execute roles and responsibilities. This is because without use of
communication it is not possible for operation manager to manage the operation
within hotel industry and solve problems (Ryu, 2021).
IT department head- It is another vacant control for which hotel is looking for a
candidate who has a higher experience in IT field department and knows how to well secured
the information as well as data of customers. For this road their skills are required which are
given as follows-
 Problem solving- It is the most important skill which is needed by IT department
head because he or she will be responsible for managing and solving all the technical
problems of management with use of their strong different languages knowledge.
Review the skills gaps within the hospitality industry in relation to a range of different
operational roles
There are various types of operational rules for example front office, Human resource
department, housekeeping department and many more in which special skills are required by

hotel industry to carry out the work in effective way. So various skills gap are mentioned
below-
Skills Gap in hotel sector- Market is becoming wider and competition level is increasing
at higher scale due to which it is becoming difficult for many businesses on education to
achieve their goals within a specific time period because of wide range of skills gaps. This
has been also analysed that with increase in competition level people have in improving and
developing their skill set but requirement by hotel industry is being changing rapidly which
leads to skill gaps within employees and business sector. In consideration of Whitbread, they
also found there is skills gap within their hotel for example old employees find it difficult to
adjust with new technologies and tools, use of multitasking activities and knowledge, digital
marketing and technology usage at simultaneous level etc. (STARBIRD,2021).
Examine impact that skills gaps have on hospitality businesses and make valid solutions for
addressing these skills gaps
Skills gap have a deep impact on hotel businesses because they provide a detailed
overview about skills which are important for hotel industry productivity and required at
priority level. Without fuelling of these gaps, selected hotel cannot achieve competitive
advantages within market. Solutions to above discussed skill gaps are given below-
Solutions to skill gaps
 Training and development programme- Most important solution which can be used
by Whitbread to deal with skill gaps because with the help of conducting training and
development program within every month it becomes easy for them to develop
knowledge and skill of employees and staff in new methods and implement changes
accordingly (Sufi, 2019).

CONCLUSION
After a brief analysis of a bug report it hasn't specified that industry is rising with the
new products and services in order to fulfil all needs of customers and guest. So decision
have been made about various types of hotel industry product and service range, functional
and operation unit, their inter-relation, PESTLE and SWOT analysis. Franchising and
licensing agreements, skills gap has been critically explained. It is also evaluated that
contemporary hospitality industry business environment need to be properly examined so that
decisions are undertaken in most efficient way.

REFERENCES
Books & Journal:
Ariella, 2021. Integrated Student Cooperative Development Program to Improve PKKWu
Learning at 2nd Public Vocational High School of Karanganyar in 2020. Cometra
General, 1(1).
Dimitrić, 2018. Profitability Determinants of Hotel Companies–Comparative Analysis of
Primorsko-Goranska County and the Republic of Croatia. Occasional Publications,
1, pp.329-350.
Heimerl, 2020. Factors Influencing Job Satisfaction in Hospitality Industry. SAGE Open,
10(4), p.2158244020982998.
Karabašević, 2019. An approach for hotel type selection based on the single-valued
intuitionistic fuzzy numbers. International Review, (1-2), pp.7-14.
Khan, 2021. Twitter trends: A ranking algorithm analysis on real time data. Expert Systems
with Applications, 164, p.113990.
Li, 2017. Optimal design of installation capacity and operation strategy for distributed energy
system. Applied Thermal Engineering, 125, pp.756-766.
Olwan, 2021. Intellectual property management for small and medium-sized enterprises in
the United Arab Emirates. Journal of Intellectual Property Law & Practice, 16(3),
pp.278-288.
Peng, 2021. Ownership Structure and Performance of China’s A-Share-Listed Benchmark
Hotels. Journal of China Tourism Research, pp.1-19.
Ryu, 2021. Looks Clear and Sounds Familiar: How Consumers Form Inferential Beliefs
About Luxury Hotel Service Quality. Cornell Hospitality Quarterly,
p.19389655211016831.
STARBIRD,2021. The Promise of Social Sector Franchising.

Sufi, 2019. A Case Study on Market Segmentation, Positioning and Classification of Multi-
Brand Hotel Chains. Emerging Trends in Indian Tourism and Hospitality:
Transformation and Innovation, p.73.
Vasudevan, 2021. SWOT-PESTEL Study of Constraints to Decarbonization of the Natural
Gas System in the EU Techno-economic analysis of hydrogen production in
Portugal: Techno-economic analysis of hydrogen production in Portugal.
Wajid, 2021. PESTEL Analysis to Identify Key Barriers to Smart Cities Development in
India. Neutrosophic Sets and Systems, 42, pp.39-48.