Report on the Contemporary Hospitality Industry: Key Aspects Explored

This report provides a comprehensive analysis of the contemporary hospitality industry, examining its structure, scope, and size. It explores various business types, including lodging, travel & tourism, food and beverages, and recreation, highlighting their diverse products and services. The report delves into operational and functional departments, such as human resources, marketing, food and beverage, and front office, and their interrelationships. It also investigates the hospitality industry's contribution to local, national, and worldwide economies, as well as the impact of franchising and licensing agreements on global development. Furthermore, the report identifies different operational roles, required skills, and current skill shortages within the industry, providing insights into skills gaps and potential solutions. The Ned hotel is used as a case study to exemplify the concepts discussed.

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1 and LO2.................................................................................................................................3
Types of business and its diverse products and services in the hospitality industry 3
Operational and functional departments in hospitality business..................................4
The hotel industry's contribution to the local, national, and worldwide economies..............5
Interrelationships of the operational and functional units hospitality business..........5
Use of franchising and licensing agreements and its influence on the global
development of the hospitality industry............................................................................6
Contribution of global growth, franchising and licensing developments to economic
worth......................................................................................................................................6
Different operational roles in hospitality industry............................................................6
Skills required for roles in the hospitality industry and current skills shortages.........7
Skills gaps in the hospitality industry in relation to different operational roles...........8
Impact of skills gaps on hospitality businesses and solutions for addressing skills
gaps.......................................................................................................................................8
LO3 and LO4.................................................................................................................................8
(Covered in PPT).................................................................................................................8
REFERENCE...............................................................................................................................10

INTRODUCTION
The hospitality sector encompasses a wide range of companies and services
related to relaxation and consumer pleasure. A distinguishing feature of the hotel
business is that it concentrates on concepts of luxury, pleasure, enjoyment, and
experiences rather than requirements and specifications. This is essential for the
expansion of the sector, as well as contributing significantly to economy and employing
a huge number of employment opportunities. This not only improves its purchasing
power, but this also raises folk's level of lifestyle. It also draws tourists and is important
for the tourism sector. The Ned is taken as the base hotel for this report. The Ned is
considered as luxury hotel which comprises of 252 bedrooms with 1920s and 1930s
design. This hotel was established in 1924 by Sir Edwyn Lutyens. In this report, it
includes the current structure, scope and size of the hospitality industry and the current
and anticipated skills requirements in the same sector.
LO1 and LO2
Types of business and its diverse products and services in the hospitality industry
In order to optimise customer pleasure and satisfy their free time, the hospitality
business is primarily separated into four divisions. The hotel industry's wide range of
services and products are designed to offer clients with the greatest possible
experience and a memorable experience (Han, 2021). In context to The Ned, the
different types of businesses in the hospitality industry are mentioned below:
Lodging: This industrial category relates to the lodging business. This part
contains places for tourists who need an accommodation in order to rest. It can also be
subdivided based on the sort of hotel where the visitor would like to stay, such as family
hotels, youngster hotels, budget hotels, motels, and so on.
Travel & tourism: This industry category also becomes highly important since it
provides consumers with transportation services such as buses, trains, and aeroplanes.
It is a service given by the firm to its consumers (Gui and et. al., 2020).
Food and beverages: This has been the major component in the hotel sector
itself. Chain restaurants have played an important role to making this area of the

hospitality sector the largest. Organizations should realise the value of the cuisine that
they serve to their clients and therefore must keep a careful eye on the foods that are
supplied by the hotel. In the case of selected hotel, company ensure that the meal
provided to its clients is produced from high-quality supplies therefore all personnel and
kitchen staff adhere to hygienic practises.
Recreation: This sector area refers to the actions that are implemented in order to
give consumers with enjoyable and above-and-beyond services (Esen and et. al., 2019).
They focus primarily on supplementary refreshment that might assist individuals in
refreshing their minds and bodies.
Operational and functional departments in hospitality business
Functional departments
Human resource department: The business's human resource department is in
charge of hiring and appointing the right individual for the appropriate role. This is
essential for the firm to recognise the value of a creative and competent personnel.
Marketing department: It is the section in charge of promoting and marketing
the hotel in reaching potential clients and build company recognition.
Operational department
Food and beverage department: The food and beverages supplied by the firm
are a key component that can modify and affect the consumer 's satisfaction Quality of
food is given to consumers in effort to keep the firm's image, and it will also assist the
firm acquire prospective consumers (Norhayati, Mohd and Fatimah, 2017).
Front office department: This department is in charge of the clients' check-in and
check-out procedures, as well as their transactions. When a visitor needs
assistance, has a concern, or has a question about the hotel, customers will just
approach the front desk, and that it's the front desk's job to address the questions as
early as possible to prevent any inconvenience.
The hotel industry's contribution to the local, national, and worldwide economies
The hospitality business has become one of the world's most important and
largest. The goal of this business is to create a positive impression for consumers and
visitors of hotels and restaurants. In the United Kingdom, the hotel industry accounts for

roughly 4% of GDP. It is critical for governments to recognise the value of the hospitality
business since it employs a large portion of the people, increasing not just the buying
power and moreover their level of lifestyle (Rathore, 2017). The hospitality business has
also been boosting tourism and travel in the nation, which could be beneficial to the
nation’s GDP and development.
Interrelationships of the operational and functional units hospitality business
Marketing department and food and beverages department: The firm's
marketing department utilises the offerings supplied by the food and beverage
department to advertise its hotels and generate positive word of mouth regarding the
outstanding cuisine and services offered by the hotels. In the situation of selected hotel,
they conduct advertising and endorsement programs where the services of the food and
beverage department are highlighted, assisting the firm in recruiting new clients.
Purchase department and housekeeping department: The housekeeping
department ensures that they already have most of the required assets to provide
excellent service to the hotel's customers. The buying department is responsible for
ensuring that they also have close communication with the housekeeping department in
attempt to gain the items that they needed (Dopson and et. al., 2021). When the
housekeeping crew runs out of supplies, the hotel's image will suffer. In relation to The
Ned, both departments of the hotel ensure that they do have a regular stock inspection
and adequate backup stock in terms of avoiding a stock out issue.
Accounts department and front office department: The hotel's accounts
department has a direct interaction with the business's front office department, because
the front office department regularly accepts transactions from hotel visitors. The
hotel also spend costs in order to meet the specific needs of the hotel's customers. The
firm employs a specific night auditor who works in both the accounting and front office
departments. In the case of The Ned, they ensure that the accounting and front office
departments are properly balanced.
Use of franchising and licensing agreements and its influence on the global
development of the hospitality industry
There are the techniques which could assist a firm in expanding its operations on
a worldwide scale. It's these practical ways how a firm may employ to assure that it can

operate and exist in an international country. This would assist the firm in entering a
whole new industry with the assistance of those that are an authority in that specific
sector. Licensing is a contract between the hotel and the government that allows the
hotel to utilise its intellectual property, technological know-how, architecture, and
building ideas in the international market. For entering a new international market, a firm
must first get a licence. Other excellent way for a hotel to join an international markets is
through franchising (King and et. al., 2018). In this technique, the hotel grants individuals
authorization to utilise the hotel's registered trademark and assets to build similar hotel
in a global market. Businesses are doing it to determine business opportunities and how
the industry will embrace the hotel.
Contribution of global growth, franchising and licensing developments to economic
worth
Licensing and franchising enable the hotel to expand, and this is eventually helpful
to the industry's worldwide development and this will contribute in economic progress.
The licensing technique will benefit the organisation in opening a branch in some other
nation and utilising the resources given by the government. The licence also allows the
hotel to create and make income in some other nation, which it may then utilise to assist
the firm in its home nation develop and expand. Franchising allows the firm to grow
without incurring additional costs. This will improve the business’s value. These
approaches are very beneficial to the economic and progress since the firm expanding
will also absorb the technology and culture of the other entire nation, allowing the nation
to discover new technology and culture that may advantage themselves (Commey, Kokt
and Hattingh, 2020).
Different operational roles in hospitality industry
Housekeeping: Housekeeping is amongst the most important roles in the
hospitality business since they were in charge of the services given to hotel visitors.
They ensure also that rooms are tidy, that food is supplied, that a certain further
services requested by the visitors are provided, and many more (Ch and et. al., 2020).
They are amongst the hotel department that has direct interaction with its hotel's
customers.

Maintenance: These are the ones which keep a watch on the services and
services that the hotel provides to its visitors. This unit is in charge of maintaining every
one of the machinery utilised by visitors in their accommodations.
Executive chef: It is the person in charge of the cuisine that is delivered to the
hotel's visitors. They ensure that the cuisine tastes good and meets the expectations of
the hotel's visitors. They play a significant part in the hotel's performance since food is a
key component in the hotel's performance and has a long-lasting influence on the
hotel's visitors.
Skills required for roles in the hospitality industry and current skills shortages
Skills required for roles in hospitality sectors
Customer service skills: The hotel business is about providing guests and
improving the client satisfaction. This is vital for employees and business participants to
have good consumer service abilities.
Communication skills: Each staff person must have strong communication skills in
order to communicate effectively with consumers and avoid misunderstandings caused
by misinterpretation.
Work ethics: The main essential ability that every applicant had to have, be it in the
hospitality or any business, is work ethics. It may assist the person in doing their
greatest in their profession while also assisting the organisation in having a creative,
dedicated, and highly qualified workforce (Lin and et. al., 2019).
Skill shortage
Team work skills: Professionals are so materialistic nowadays that most would
not wish to gather in teams. Some believe they are inefficient when operating in groups
One explanation for this is that people prefer to work alone as they dislike interruption
from people in the job and would not want to receive advice from others.
Multitasking abilities: One of the capabilities that are lacking in today's market is
the inability of employees to multitasking. Individuals prefer to specialise in a specific
activity and lack the desire or motivation to master new experiences and attempt with
certain other jobs.

Skills gaps in the hospitality industry in relation to different operational roles
The most of the skills required for operating positions in the hotel sector are
communication and customer service capabilities. It is vital for the applicant to realize
the significance of the talents in the business (Kallmuenzer and Peters, 2018). There is
fierce rivalry in the industry for employment in the hotel sector, creating it even more
difficult for individuals to acquire a position. The firm is requiring more and more abilities
and is only searching for exceptional people. In the case of The Ned, they ensure that
they have the greatest staff with the necessary abilities in needed to guarantee that the
hotel's clients receive services that exceed their aspirations, allowing the firm to gain a
competitive edge in the industry and develop a solid client network
Impact of skills gaps on hospitality businesses and solutions for addressing skills gaps
The hotel sector is suffering as a result of a skills shortage. The hotel business
demands employees who are competent and capable of managing and dealing with the
problems that emerge in the business. The experienced professional will assist the firm
in its administration as well as in offering excellent services to the hotel's customers. In
the case of the chosen hotel, the firm's human resource department guarantees that its
hotel solely hires qualified and productive workers and they have a top talent that could
be useful for the organization in assigning any new worker such that the business's
operations are not interrupted (Schoffstall, Brown and Arendt, 2017). Skilled personnel are
equipped to provide superior services, which benefits the hotel's credibility and
corporate identity.
LO3 and LO4
(Covered in PPT)
CONCLUSION
From the above analysis, it can be concluded that trained staff is a must in the
hospitality business. It is necessary for the hotel sector to have a trained staff that can
assist them in company management and operations. In this report it includes all the
structure, scope and size, current and anticipated skills which is requirements in the
hospitality industry.

REFERENCE
Book & journals
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Performances of Hospitality Firms (With Reference to South India). International
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competencies expected from hospitality graduates in Ghana. Journal of Sustainable
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Dopson and et. al., 2021. Perceived Importance of Career Engagement Initiatives in Hospitality
Education. Journal of Hospitality & Tourism Education, pp.1-9.
Esen and et. al., 2019. Can insider trading in US hospitality firms predict future
returns?. International Journal of Hospitality Management, 83, pp.115-127.
Gui and et. al., 2020. A meta-analysis of transformational leadership in hospitality
research. International Journal of Contemporary Hospitality Management.
Han, H., 2021. Consumer behavior and environmental sustainability in tourism and hospitality: a
review of theories, concepts, and latest research. Journal of Sustainable Tourism, 29(7),
pp.1021-1042.
Kallmuenzer, A. and Peters, M., 2018. Innovativeness and control mechanisms in tourism and
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King and et. al., 2018. The Incipient Digital Revolution in Hospitality and Health Care: Digital Is
Hospitable. Journal of the American College of Radiology, 15(9), pp.1351-1353.
Lin and et. al., 2019. Hospitality co-creation with mobility-impaired people. International
Journal of Hospitality Management, 77, pp.492-503.
Norhayati, M. Y., Mohd, S. and Fatimah, A. G., 2017. Hearing-impaired specialized career
education: does it benefit the hospitality industry?. Journal of Tourism, Hospitality and
Culinary Arts, 9(2), pp.345-355.
Rathore, P. S., 2017. Significance of training and hospitality skills for hotel
employees. International Journal of Engineering and Management Research
(IJEMR), 7(3), pp.53-56.
Schoffstall, D. G., Brown, E. A. and Arendt, S. W., 2017. Hospitality and tourism student and
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career growth. Journal of Teaching in Travel & Tourism, 17(3), pp.189-207.