The Contemporary Hospitality Industry: An In-Depth Analysis

This report provides a comprehensive overview of the contemporary hospitality industry, focusing on various aspects of business operations. It begins with an introduction to the industry, defining its scope and objectives, and then delves into different types of businesses within the sector, including accommodations, food and beverage services, and related concerns such as travel agencies. The report then examines the operational and functional departments of a selected business, the Ritz Hotel, detailing their responsibilities and interrelationships. Furthermore, it analyzes the contribution of the hospitality industry to local, national, and international economies, highlighting the role of franchising and licensing agreements in global development and economic growth. The report also explores the operational roles within the Ritz Hotel, the skills required for these roles, and identifies potential skills gaps and their impact on hospitality businesses, proposing solutions. The report concludes with a summary of the key findings and includes references to relevant sources.

The Contemporary
Hospitality Industry
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Table of Contents
INTODUCTION..............................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK...............................................................................................................................................3
Explain different types of business in the hospitality industry with their product and service.
................................................................................................................................................3
Describe the operational and functional department in context of selected business............4
Analysis the contribution of hospitality industry to local, national & international economy.5
Define the interrelationship between operational and functional units..................................5
Explain the use of franchising & licencing agreements influencing global development.....6
Describe the contribution of franchising and licencing in the economic growth...................6
Explain the operational role in context of selected business..................................................7
Define the skills required for roles within the hospitality industry........................................7
Examine the skills gaps within the hospitality industry in relation to a range of different
operational roles.....................................................................................................................8
Determine the impact of skills gap on hospitality businesses and provide valid solution.....8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
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INTODUCTION
Main objective of this report is to better understand the concept of contemporary hospitality
industry. It is a boarder term within the service industry as it will include lodging, food and drink
service, event planning, theme parks, travel & tourism etc. in other words hospitality industry
will include all hotels, tourism agencies, restaurants and bars (Erkmen and Hancer, 2019). Main
goal of hospitality industry is to provide better customers service. It will also play an essential
role in the growth of economic by providing employment and a better infrastructure. In relevance
of UK economy, this sector will play an important role as it will provide employment to almost
4.50 million people. For this report Ritz hotel is taking into consideration. It is a 5 star hotel
which is located in Piccadilly in London, England, U.K. The hotel is one of the world’s most
prestigious and best known hotels which define a symbol of high society & luxury hotel. It was
founded by Abdulhadi Mana Al-Hahri in 1906. This report will include, various types of
business in the hospitality industry with their products and service, operational & functional
departments, its contribution in local, national & international economic. Other than this it will
include the interrelationship between operational and functional units, influence of franchising
and licensing in development of hospitality industry & economic worth. It will include the role
of operation departments, various skills require for performing these roles, gap in the skills and
its impact on business.
MAIN BODY
TASK
Explain different types of business in the hospitality industry with their product and service.
Hospitality industry is actually one facet of the service industry. Its main objective is to
address the customer’s satisfaction and catering the needs of their guests. It was analysis that
hospitality industry will cover a large area and different types of businesses for effectively meet
the requirements of their customers. Various types of hospitality business are discussed below:
 Accommodation- It was analysis that accommodations will represent the veritable
backbone of the hospitality sector. It will define that accommodation is an important part
of this sector. In this type of business best and luxury service is provided to their
customers. It will include hotels or resorts, hostels and so on (Lu, Chen and Law, 2018).
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 Food and drink- The second important hospitality sector is Food & Drinks. It is already
a foregone conclusion that business customers or guest will require to be offered food &
drink service during their stay. It will include restaurants, catering, bars & cafes etc.
 Hospitality related concerns- It is obvious that an individual will require to be provided
with a timely means for successfully arrives at their destination. Trains, aeroplanes and
cars hire services are also encompassed by this category. It will include travel agents,
online travel agencies, car rental and so on (Luu, 2019).
Describe the operational and functional department in context of selected business.
Operational departments
 Housekeeping department- In context of Ritz hotel, main responsibility of this
department is to ensure that they will provide a clean environment to their customers
which will assist them in achieving better customer’s satisfaction.
 Food department- This department will responsible for providing better quality food to
their customers on time. In context of selected company, they will provide delicious food
to their customers which will increase their customer’s loyalty.
 Front desk service- This department will focus on effectively interacting with their
customers and help them to visit the hotel. They are responsible for booking reservation
as per the requirement of their guest. In context of selected hotel, this department will
timely resolve the problem faced by their customers.
Functional department
 Security department- Main focus of this department is on the safety of both hotel people
in hotel and property of hotel. In context of selected hotel, their security department will
include highly trained security guards and CCTV cameras. They will provide best
security to their guest which will make them to enjoy without any tension.
 Finance department- In context of selected hotel, main focus of this department is on
the effectively control the cash inflow and outflow for maintaining a proper fund in
company. They are responsible to prepare an effective budget for hotel so that their all
operational are done smoothly (Farmaki, 2019).
Analysis the contribution of hospitality industry to local, national & international economy.
Hospitality industry will consider as the largest sector in the world and play an essential
role in the growth of local, national and international economy. It was analysis that tourism &
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hospitality will promotes the economic growth by increasing the acquisition of foreign exchange,
generating more employment, promoting development of infrastructure. Other than this they will
also contribute in the revenue of government.
Local economy- It was analysis that hospitality industry will help in the growth and
development of local economic by providing employment to local people, which will increase
their standard of living that will assist in development of local economic. It will help the local &
state government to generate greater tax revenue.
National economy- Hospitality industry will also play an essential role in the growth and
development of national economic by increasing the GDP rate. It was analysis that hospitality
sector will provide employment to almost 10 % of people in total population of country. In UK
there are more than 223045 numbers of business related to hospitality sector which contribute in
the GDP (Harkison, Hemmington and Hyde, 2018).
International economy- It was analysis that the impact of hospitality on our global
economy is very important. As it will assist in the development of international economic. The
travel & tourism industry will encompasses 266 million jobs, & contribute almost 9.5 % of gross
domestic product globally.
Define the interrelationship between operational and functional units.
In context of Ritz hotel, there are various departments in it who will perform their work
in the hotel. For success of any business it is very important that their all departments are
interrelated with each other. Interrelationship between various functional units are discussed
below:
Marketing & front desk service- In context of selected hotel, their marketing
department is required to fully corporate with their front office department. This is because it
will assist them to collect the necessary information related to their customers which is useful in
the formulation of business strategies. Other than this the front officers will also achieve the
benefit of strong customer’s bases through marketing offers, which help organisation in the
growth and development (Kim and et. al. 2018).
Housekeeping and maintenance department- For providing better services to their
customers it is important that both the housekeeping and maintenance department are interrelated
with each other. Housekeeping department will inform the maintenance department related to
any problem occur in the hotel rooms or other place so that they will timely resolve that problem.
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From the above discussion on this report it was analysis that operational & functional
departments will play an essential role in successfully operating the business operations. Better
interrelationship between the departments will assist them in providing better quality service to
their customers (Ko, Chan and Wong, 2019).
Explain the use of franchising & licencing agreements influencing global development.
Franchising- This method is used by many organisation for successfully expanding their
business in the international market. Franchising is consider as the best method in the hospitality
industry which will provide them better growth. It was analysis that franchises will help in the
global development. It was analysis that it will develop the local economy of a country through
providing more jobs to people, increase revenue of government through tax payment. In context
of selected hotel, franchising is the best tool for creating a global image their brand.
Licencing- It refers to a business arrangement in which h one organisation will give the
permission to other organisation to use its product or service for a specific period of time. In
other words as per this method an organisation will give permission to another company to us
their patents, trademarks, copyrights, designs, and any other intellectual property in exchange for
a fix percentage of fees. In context of Ritz hotel, through this option company will get various
opportunities and reduce the level of risk. They will successfully expand their business in other
countries also (Leon, 2019).
Describe the contribution of franchising and licencing in the economic growth.
From the above discussion on licencing and franchising in context of global development
it was analysis that these both will play an essential role in the growth of economy and
hospitality sector as well. It will help in the development of infrastructure, create employment,
and revenue generated from it will directly contribute in the GDP rate. It was analysis that both
the factors will help an organisation in expanding their business and create a strong image of
their brand. Both the tools will assist in the development of economy of a country. The
contribution of both franchising and licencing are discussed below:
Franchising- It was analysis that this tool is used by famous organisation for expanding
their business size and profitability. In context of selected organisation, by opting this method
they will be able to generate more profit and revenue as compare to other companies. It was
analysis that franchising will create more employment and profit which will assist in the
economic development.
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Licencing- Through this tool an organisation will give right to other related to fully use
their patents rights and expand the business under the same brand name. It will help in
generating more revenue which will assist in the enhancement of government revenue through
payment of tax. It will also develop the infrastructure which will assist in the growth and
development of an economic (Ma and et. al., 2021)
Explain the operational role in context of selected business.
In context of selected hotel, there are various kind of operational role which are
performed by different departments of company for providing better services go their customer’s
which are discussed below:
 Housekeeping department- The work and efficiency of perform this operation will
directly influence the experience of their customers. In context of Ritz hotel, main role of
this department is to provide a clean and hygiene environment to their customers. The
housekeeping department of selected company will provide tem a neat and clean
environment which will increase the level of satisfaction of their customers.
 Food production department- Main role of this department id to provide better quality
of food to their guest as per their taste and preferences. In context of selected hotel they
will serve high quality and delicious food which will satisfy their customers most.
 Front office department- It was analysis that main role of this department is to booking
rooms as per the customer’s requirement and ensure that their customers are comfortably
sty in the hotel. In context of Ritz hotel, main role of this department is responsible for
timely check the requirements of their customers and also resolve their problems on time.
Define the skills required for roles within the hospitality industry.
Skills and knowledge of employees will play an essential role in the growth and
development of hospitality industry. It was analysis that it was quite difficult to perform, their
responsibility with sufficient skills. In context of Ritz hotel, it will include various departments
and each department will require special skills. Various kinds of skills which are require to
effectively perform their job ole are discussed below:
 Skill require for operational manager- It was analysis that main role of operational
manger is to ensure that all day to day operations are perform in an effective way. In
context of selected hotel, their operational manger will require good communication
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skills, negotiation as well as technical skills. These skills will help them in successfully
operating the business operations (Okumus and et. al. 2019).
 Skills require for front office manager- In context of selected hotel, their front manager
are require to effectively intact with their customers so that they will effectively
satisfying their needs and timely resolve their problem. For successfully performing this
role they’re require an effective problem solving skill and good communication skill.
Examine the skills gaps within the hospitality industry in relation to a range of different
operational roles.
It was analysis that there are different operational departments in an organisation such as
housekeeping department, maintenance department, front office and so on. For providing better
services to their customers and achieving organisation goal their skills will play an essential role.
It was analysis that the hotel is established in a dynamic environment and also the taste and
preferences of their customers will also change so a gap in the skills of their employees will be
identify. In context of selected hotel they are require to timely identify the skills that are required
for growth of their business. Ritz will provide effective training and development programs for
their employees which will assist them in reducing the gap in the skills of their employees and
increase the efficiency of their employees to better satisfying the needs and requirements of their
customers so that they will achieve better growth.
Determine the impact of skills gap on hospitality businesses and provide valid solution.
In context of Ritz hotel it was analysis that the gap in the skills of their employees will
reduce the productivity of their employees. They are not able to provide better services to their
customers. Because of skill gap the capability of their employees to perform their job role will
decrease, which will also reduce the level of satisfaction of their employees. In last it was
analysis that any gap in the skills will directly influence the growth and success of organisation.
Solution- For reducing the gap of skills selected organisation will require to effectively
communicate with their employees so that they will better understand the problems that their
manager will face and also require to adopt an effective training to their employees which help
the development of skills and knowledge of their employees. Reducing the skills gap will
increase the profitability of company (Wu and et. al. 2018).
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CONCLUSION
From the above discussion on this report it was concluded that hospitality industry will
play ab essential role in the growth and development of economy. It was contribute in the
development of local, national and international economic. It was analysis that there are various
types of business in this industry. It will involve various skills in relation to the operational role
in company. Other than this SWOT and PESTLE analysis will help an organisation in effectively
analysing their internal and external factors and it will also assist an organisation in meet the
current trends in market which is covered in the second part of this report.
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REFERENCES
Books & Journal
Erkmen, E. and Hancer, M., 2019. Building brand relationship for restaurants. International
Journal of Contemporary Hospitality Management.
Lu, Y., Chen, Z. and Law, R., 2018. Mapping the progress of social media research in hospitality
and tourism management from 2004 to 2014. Journal of Travel & Tourism Marketing. 35(2).
pp.102-118.
Luu, T.T., 2019. Building employees’ organizational citizenship behavior for the
environment. International Journal of Contemporary Hospitality Management.
Farmaki, A., 2019. Corporate social responsibility in hotels: a stakeholder
approach. International Journal of Contemporary Hospitality Management.
Harkison, T., Hemmington, N. and Hyde, K.F., 2018. Creating the luxury accommodation
experience: case studies from New Zealand. International Journal of Contemporary Hospitality
Management.
Kim, S.H., and et. al. 2018. Hospitality employees’ citizenship behavior: the moderating role of
cultural values. International Journal of Contemporary Hospitality Management.
Ko, A., Chan, A. and Wong, S.C., 2019. A scale development study of CSR: hotel employees’
perceptions. International Journal of Contemporary Hospitality Management.
Leon, R.D., 2019. Hotel’s online reviews and ratings: a cross-cultural approach. International
Journal of Contemporary Hospitality Management.
Ma, E., and et. al., 2021. Industry as Contexts or Theory? A Systematic and Meta-Analysis of
Status and Directions of Organizational Citizenship Behaviors in Hospitality. Journal of
Hospitality & Tourism Research, p.10963480211019104.
Okumus, F., and et. al. 2019. Strategic management for hospitality and tourism. Routledge.
Ren, L., and et. al. 2018. Investigating accommodation experience in budget hotels. International
Journal of Contemporary Hospitality Management.
Wu, H.C., and et. al. 2018. Towards green experiential loyalty. International Journal of
Contemporary Hospitality Management.
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