Contemporary Hospitality Industry: Analysis and Trends Report

This report provides a comprehensive analysis of the contemporary hospitality industry, exploring various business types such as accommodation, food and beverage, travel and tourism, and entertainment. It delves into the operational and functional departments within a chosen hospitality business, specifically using Holiday Inn as a case study, examining departments like Front Office, Housekeeping, Finance, and Human Resource Management, and their interrelationships. The report discusses the hospitality industry's contribution to local, national, and international economies, highlighting its role in providing employment and generating revenue. It also investigates different operational roles within the industry, such as Operations Managers, Front Line Managers, and Back Office Managers, while also examining the skills required for these roles and current skills shortages. Furthermore, the report assesses the impact of political, economic, social, technological, legislative, and environmental factors on the development of hospitality organizations, including a SWOT analysis for Holiday Inn. Finally, it appraises current and potential trends in the industry, providing specific examples and implications for the future.

Contemporary Hospitality Industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explore the different types of business within the hospitality industry and the diverse
products and services they offer.................................................................................................3
P2 Examine a range of operational and functional departments within a chosen hospitality
business ......................................................................................................................................4
P3 Discuss the contribution of the hospitality industry to local, national and international
economies...................................................................................................................................5
TASK 2............................................................................................................................................7
P4 Investigate a range of different operational roles within the hospitality industry ................7
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages.....................................................................................................................................8
TASK 3............................................................................................................................................9
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry ............9
P7 Undertake a SWOT analysis for a hospitality business and review how this can inform the
decision-making process...........................................................................................................10
TASK 4..........................................................................................................................................11
P8 Appraise the implications of current and potential trends in the hospitality industry
providing a range of specific examples....................................................................................11
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality industry plays very important part in economic development of nation as it
attracts a large number of travellers towards nation and provide them better facilities and
satisfaction. Several business organisations falls under the hospitality industry i.e. pubs,
restaurants, travel and tourism etc. that offers services to travellers of different nation so that
their satisfaction level become increased. Travel and tourism is also an important part of
hospitality industry that also offers accommodation or many other facilities to guests. Present
assignment is based on an exhibition that is conducted for school pass-outs so that they can
make their career in hospitality industry. Along with it, an organisation is also taken so as to
complete this project which is Holiday Inn that was founded in 1952 and headquarters are
situated in Denham. This Assignment will be discuss about the assorted kinds of businesses that
exists within the hospitality industry along with contribution of it in local, national and
international economy. Different operational roles with requirement of skills for performing
these roles will also covered in this report. At last, project will covers implication of current and
potential trend of hospitality industry.
TASK 1
P1 Explore the different types of business within the hospitality industry and the diverse
products and services they offer
Hospitality is a broad concept that consists of food and drink, lodging services, cruise
line, event planning and so on. Main aim of this industry is to provide memorable memories
through fulfilling their needs. So that, good brand image can be maintained in marketplace.
Therefore, it can be said that growth and sustainability of hospitality industry is highly based on
satisfaction of travellers (Altin, Koseoglu,and et. al., 2018). Several kind of businesses along
with their services are discussed as below: Accommodation: Accommodation can be defined as staying in hotel and having
breakfast in a cabin or house boat. This kind of businesses are mainly formed for
providing comfort, fulfilling needs of customers as per their demands. Area of this sector
is broad rather than other sectors because it not only provides food but also provide
accommodation services to guests. Accommodation is also known as lodging that can be
defined as providing place in hotels or resorts for sleep to guests while travelling.

 Food and Beverages: It is also a broad sector of hospitality industry that's range is
started from normal coffee bar to cocktail bar or cafe to restaurant. Some kind of services
are also provided by this sector which are given as below:
Quick-service Establishment: This part of food and beverage is also known as fast
food restaurant that targets those customer who requires quick services.
Catering businesses: This sector is designed for fulfilling food and drink services in
special occasions like wedding, conferences, seminars etc.
Full-service restaurant: It also provides meals, drinks or many other related things to
guests as per their demand at a specific place that may be themed restaurant or any. In which
visitors visits and order food as per their demand. Travel and tourism: Size of this sector is wide in hospitality that includes train, ships,
cruise and many more services which are provided by it to guests. It offers two kind of
travel services to the guests i.e. formal and informal in which formal is designed for
fulfilling educational or business purpose. Whereas, informal is designed for
entertainment or travel (Cheng and Chen, 2017).
 Entertainment: This is also an important part of hospitality industry that offers bar,
gaming and marines to the travellers for fulfilling their entertainment purposes.
P2 Examine a range of operational and functional departments within a chosen hospitality
business
Growth and sustainability of each organisation is depends on efforts of employees who
are working within it. Several divisions are also framed by hospitality organisations so that
needs and wants of customer will be fulfilled effectively (Henderson, 2016). Deal effectively
with customers or smooth functioning of hotel these departments are essentially required
because without their efforts needs and wants of travellers can't be satisfied that can impact on
the whole working performance of organisation. Some of divisions that are designed under
hospitality organisation are given as below:
Operational Department: These divisions are formed for designing and controlling of
business operations of firm. Departments which are worked under operational division of
Holiday Inn are described as below:
 Front Office: This is the first division which is interacted with visitors or travellers
firstly on the behalf of Holiday inn. This division is also responsible for handling

questions and queries of guests so that better satisfaction can be provided to customers.
This division includes reservation clerk, receptionist etc. that interacts with customers at
the time of their entrance in hotel premises.
 Housekeeping: This division of operational department of Holiday inn is responsible for
maintaining cleanliness and every thing in a room before allotting room to guest. It is
important because if allotted room will be dirty then it directly impact on the reputation
of Holiday inn.
Functional Department: This department of Holiday inn also comprises of numerous
functional department which are described as below:
 Finance Department: This division of Holiday Inn have responsibility to raise funds
and utilise them through using several techniques like capital budgeting, portfolio
management etc. so that good financial position of hotel can be maintained in
marketplace.
 Human resource Management: This department of Holiday Inn is responsible for
recruiting, training, salary, safety and welfare of employees because without their
support customer's needs can't be fulfilled that can affect the overall profitability of firm.
Interrelationship among operational and functional department – All the above
discussed departments of Holiday Inn are interrelated with each other. Such as, Housekeeping
department wants to purchase cleaning products so that head of department will contact with
head of finance department so that funds can be received for purchasing products. Whereas, if
there is a need of employees in front office then HR division have responsibility to hire eligible
candidates for fulfilling this need (Hua, 2016). Therefore, it has been identified that all these
divisions are interrelated and provide combined efforts for satisfying the desired needs of guests.
P3 Discuss the contribution of the hospitality industry to local, national and international
economies
Hospitality organisations are very important for economic growth of nation as they not
only satisfies the needs of travel but also provide employment opportunities to local individuals
or in market in which they are performing their business operations. These organisations and
their impact on economies at each level like local, national or global are described as under:
Local economy: Hospitality organisations operates their functions at each level as in
local level these firms provides employment opportunities to local individuals in form of guides,

hand made crafts etc. that automatically leads towards raising of their standard. Hospitality
industry also fulfils needs and wants of travellers at local level so that it can be said that this
sector is impacting positively on the local economy and residential.
National economy: In UK, Hospitality sector is rapidly growing as compare to others
such as in year of 2018, this industry has reached an annual turnover of £102b that defines huge
growth of industry in nation (Hospitality sector to reach annual turnover of £102b in 2018). It is
also known as third largest employer of UK like 3 million individuals in UK are providing their
services in hospitality industry. Therefore, it has been identified that hospitality industry is not
only supporting in nation's economy but also increasing revenue that is useful for development
of nation.
International economy: There are several multinational organisations exists in
hospitality sector of UK whose operations are situated in more than one nation due to which
their contribution towards growth of global economy is high. As per the report of Online
statistical office, around 42 million visitors have visited UK along with different purposes that is
automatically supporting in growth of UK nation. From the discussed informations, it has been
analysed that Hospitality industries in UK not only providing employment opportunities to
individuals but also supports them in raising their standard of living (UK braced for record
number of tourists, 2018).
Key factors driving growth
Expansion of international hotel chains and brand identity: Entering of multinational
hospitality organisations supports the economic growth of nation at local, national or
international level. Due to having wide presence, multinational hospitality organisations have
build strong brand image because of which large number of travellers of different nation prefers
to stay or take services from these firms. This will impacts positively on international economy
as hospitality sector will grow due to new expansion that will increase revenue of local industry
and global economies (Kong, Jiang, Chan and Zhou, 2018).
The growth of franchising and licensing agreements: Nowadays, franchising and
licensing agreements is becoming popular because lower investment is needed for promotion
and heavy benefits are received within a shorter span. Several international organisations have
expanded their operations by using franchising or licensing as this method is beneficial for them
in entering in a new market with a specific investment. These expansion makes positive impacts

on the local economy as it supports the local individuals by providing them employment so that
their living standard can be improved. Due to growth of hospitality sector, several big brands of
food and beverages sector like KFC, McDonald have used this method for establishing their
business in UK.
TASK 2
P4 Investigate a range of different operational roles within the hospitality industry
There are numerous roles that are played by employees of Holiday Inn which are
discussed as below: Operation manager: This role is performed by operations managers of Holiday Inn in
which they monitors all the activities that are performing by other employees so that
good satisfaction and experience can be provided to travellers at their stay time. Along
with it, they also ensure that customer's needs are fulfilled by employees of hotel or not.
So that, brand image of organisation can be maintained for a long time-frame. Front Line manager: Front office is the first who interacts with the guests as it
represents the organisation in-front of customers. Whereas, front office manager is
responsible for building good impression of Holiday Inn on the mindset of customers.
Along with it, they also ensures that queries and problems are resolved by employees or
not if not then they are responsible for directing the employees for resolving queries.
Main objective of these kind of manager in Holiday Inn is to ensuring customer
satisfaction during their stay within the Hotel (Khodadadi, 2016).
 Back office manager: Back office does not provide contributions directly in generation
of revenue for hotel. Whereas, several functions are performed under it like managing of
financial accounts, IT services etc. Back office managers of Holiday Inn have
responsibility of managing financial detail and accounts of firm along with providing
better solutions for the different business operations so as to performing role effectively.
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages
Employees of Holiday Inn have to acquire several skills and capabilities so as to
performing their roles effectively. Some of these competencies that are required by the managers
within the workplace of Holiday Inn are described as below:

 Technical skills: These capabilities are essentially required by the employees of
hospitality industry so that they can easily handle latest technical equipments and
software for performing their functions without any errors. These skills are mainly
needed by the employees who are working in back and front offices of Hotel because
without grabbing technical skills they can't perform their roles and responsibilities
effectively. Customer handling skills: These competencies are also important for workers in
hospitality industry as it helps them in handling the customer's queries who belongs from
different nations. By acquiring these kind of skills, grievances and issues of customers
will be resolved that will ensure the good brand image of firm in mindset of customers.
Workers who are performing their roles in front office and operations should acquire
these skills as they have to interact with customers on regular basis for ensuring that their
needs are satisfied or not (Mooney, 2016).
Skills gaps, drivers and their impact
Most of the employees who are working in hospitality industry having lack of
communication skills due to which they are not able in interacting with others due to low
confidence and poor education level etc. Due to lacking of these skills customer's needs are not
satisfying properly by them due to which dissatisfaction is arising among them that is impacting
negatively on the organisation in terms of reduced profitability and productivity. These skills can
be improved among the individuals by arranging better training programmes for them which will
beneficial for firm in improving customer's satisfaction.
TASK 3
P6 Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organisations operating within the hospitality industry
Pestle analysis is used by organisation in order to determining the impact of macro-
environmental factors on business operations. With the help of it, These organisation can
determine the factors that can influence productivity and performance in market. This model is
discussed as under:
Political: This factor comprises of stability of government, political conditions etc. that
can poses impact on growth and success of hospitality organisation in positive or negative

manner. Due to Brexit, government policies such as tax duties are changing on continuous basis
in European countries which have created challenges for hospitality organisation in terms of
earning profitability. Whereas, stability of UK government and constancy of tax rates is
providing support to Holiday Inn in terms of improving their profitability and growth.
Economical: These factors can also impact on the growth and success of organisation
due to change in interest, inflation rates etc. Current tax rate in UK is 20% which is less than the
other nation's tax duties therefore, it can be considered as a positive sign of this factor. Apart
from that, Operations of Holiday Inn are expanded in several nation such as Ireland, America,
Africa etc. so that if any change is occurred in tax rates of these nations then it will provide
negative impact on the overall growth and profitability of firm.
Social: This factor comprises of taste, preferences, attitude, belief, preferences of
customer that can impact on their purchasing habits. Individuals of UK are educated and skilled
due to which they prefers to collect whole information before visiting or booking in hotel. For
this, Management of Holiday Inn should conduct market research so that present needs and
wants of customers can be identified that will automatically leads in improvement of facilities.
Whereas, needs and requirements of customers can be changed over a time period that can
negatively influence on the profitability of firm. Therefore, it should be identified effectively so
that these impact can be overcome easily (Rahimi, 2016).
Technological: Such factor comprises of advancement in technology, invention etc. Due
to having presence of various multinational organisations UK nation is more technically
advanced because of which most of individuals prefers those hospitality organisations which are
providing technically updated services such as Wi-Fi, Gaming Zone, Poker etc. Artificial
intelligence is using by Holiday Inn so as to improving quality of services that have provided
positive impact on the profitability of firm. Whereas, lack of IT skills among the employees have
restricted the growth of firm in marketplace.
Environmental: Protection of environment, utilisation of resources, elimination of
wastage etc. are falls under this factor. Government of UK is more strict for protecting the
environment due to which several laws are formed by them i.e. Environmental protection act,
2011. Through following this regulation, management of Holiday Inn will be able in making
good brand image in front of government whereas, if this law will not followed by management
effectively then it will posses negative impact on the growth and sustainability of firm in market.

Legal: This factor comprises of laws and legislations that are framed by UK government
for protecting employees from unfair treatment of employers. Management of Holiday Inn is
following several legislations like Equal act 2010, National Minimum wages Act 1998, working
time regulation 1998 etc. that are impacting positively on the organisation. Whereas, their point
of sale systems were hacked by Hackers due to which credit card data of customers was stolen
that have influences the sales figures of approx. 1200 branches of hotel (Latest Credit Card
Breach Hits Holiday Inn, 2016).
P7 Undertake a SWOT analysis for a hospitality business and review how this can inform the
decision-making process
SWOT can be refer to an internal analysis that is used by organisations for analysing
their internal strength and weaknesses along with opportunities and threats. Through this model,
organisation can eliminate the threat or weaknesses or modifying weaknesses into strength.
SWOT analysis for Holiday Inn are given as below:
Strengths Weakness
 Holiday Inn is operating its business
operations in several nations due to
which brand image of hotel is very
high.
 Due to having wide presence and
quality services sustainability of firm is
high rather than its rivals.
 Due to scandal of credit card data
security system of firm was criticized
that have influences on the sales figures
of their various outlets.
 Competitors are increasing in
hospitality industry of UK that are
limiting the market share of firm.
Threats Opportunities
 Marriott, Hilton, Hyatt are the giant
rivals of firm that are providing threat
on profitability of firm.
 Low level of knowledge among the
employees can become threat for the
performance of organisation.
 Company can expand its market
presence in India as it will beneficial
for improving the profit figures of
organisation.
 Providing of Seasonal discounts to
customers can become opportunity for
the sustainability of firm in future

period of time.
Influences of SWOT analysis on Decision-making - From the above analysis, it has been
identified that management of Holiday Inn should make focus on their weaknesses so that any
influence will not be faced in decision-making process. Apart from that, they should make
effective plans or policies so that effective solution for threats can be made which automatically
leads the firm towards growth and sustainability (Stansbie, Nash,and Chang, 2016).
TASK 4
P8 Appraise the implications of current and potential trends in the hospitality industry providing
a range of specific examples
It is very important for organisations that are engaged in hospitality industry to make
plans as per the current and future trends so that by keeping eye on these trends current situation
of firm can be improved. Prevailing and potential trends are given as below:
 Current Trend
Internet services- This is one of the fastest going trend in hospitality sector that supports
the customers in getting review of hotel which are planned by them for visit. Along with it, they
can also check Facilities and services which are providing by hotel through their website and
make plans accordingly.
Tech explosion- Most of visitors who comes and take services in hospitality industry
wants peaceful environment as they don't want to disturb any employee of hospitality
organisation in order to resolving their queries. Therefore, hospitality organisations should adopt
some effective technical instruments so that needs of such customers can be fulfilled effectively.
 Future Trend
Direct Booking- Management of Holiday Inn will be able in raising attraction of
customers towards the high quality services of organisation.
Tracking facility- Through adopting this technique, exact location of customers will be
tracked which will automatically supports in customer base of organisation.
Ability of Holiday Inn to develop products and services that will meet current trends -
Management of Holiday Inn should make effective modifications in their current working
structure so that current trends can be adopted or used by their employees. For implementing
these trends, training programmes should be provided to their employees so that their knowledge

regarding the technical equipments can be improved. Along with it, Performance of employees
should also monitored by management on regular basis so that desired goals can be achieved
effectively.
CONCLUSION
It has been concluded from the above discussed information that several segments are
included in the hospitality sector like lodging accommodation, entertainment, food and
beverages etc. Main objective of this sector is to improve satisfaction level of customers so that
customer base or market share can be increased in market. PESTLE and SWOT analysis are
important to conduct because it suggests the ways that can be used by firms for gaining
competitive advantage in market. Current trends or future trends are very necessary to determine
as without these organisation can't take growth and sustainability in market.