Contemporary Hospitality Industry of UK: Analysis and Trends Report

This report provides an in-depth analysis of the contemporary hospitality industry in the UK, addressing critical operational, managerial, and legislative issues. It examines challenges such as decreasing profits at establishments like Novotel, high staff turnover, and non-compliance with minimum wage regulations. The report explores strategies for improvement, including cost reduction, enhanced employee experience, and the adoption of new organizational structures. It also discusses the current image of the industry, emphasizing its role as a job creator and the need for a focus on full-time employment. Furthermore, the report identifies emerging trends like health and well-being, eco-friendly practices, and real-time damage control, providing an impact analysis of these developments. The conclusion stresses the importance of addressing operational, legal, and managerial challenges while embracing upcoming trends to ensure the industry's future success. References include sources such as Barrett (2018) and Statista (2017).

Contemporary Hospitality Industry of UK
Task 3 and 4

Introduction
• Operational/managerial/legislative issues
affecting the hospitality industry of UK.
• current image of the hospitality industry and
the new trends.
• impact analysis for the predicted trends and
developments

Operational issues affecting the hospitality
industry
issue of decreasing profit at Novotel and change management
• Reduction in operational cost by adopting competitive strategy
• Increasing hotel occupancy by reducing the pricing .
• Appointment of new co-presidents that had complementary
personalities .
• Adoption of flatter organisational structure for better
management.
Issue of guest satisfaction in leading 5 star luxury hotel of UK
• Employee involvement at critical stages to increase engagement.
• Increase in Speed of service by reducing the process time.

Managerial issues affecting the hospitality industry
• high Staff turnover in hospitality industry of UK.
• Hilton hotel which has turnover rate of 6 to 9 percent.
• decrease in employee number for 169000 to 163000
from 2016 to 2017.
Changes made
• focused on increasing employee experience good work
environment.
• extensive renovations, new lights, renovated cafeterias.
• parental leave of 10 months to the mothers.

Legislative Issues
• Non adherence of firms in hospitality sector of UK with
the clause of minimum wage payment.
• Asian restaurant chain Wagamama - 133212 pounds to
2630 employees
• Marriott Hotels - 71722 pounds to 279 employees.
• The lack of payment is with respect to national
minimum wage and the national living wage.
• Notice for underpayment has been issued to these
firms.
• non compliance may led to heavy financial penalties.

current image of the hospitality industry
• Big in size.
• Job creator for UK economy
• May generate 1 lakh jobs by end of 2019.
• Image of short term job provider
• Need to focus on providing full time jobs to
employees rather than part time jobs.
• Facing cost pressure
• Need support from government

potential trends and developments in
hospitality.
• Increased emphasis on health and well-being
• Eco-friendly practices
• Real-time damage control
• Unique offers

impact analysis for the predicted trends and developments.
• Good consumer service and quick responses to
the issues faced by them should be a top
priority.
• Proper training and development sessions
should be there for staff members to avoid any
issue.
• Firms must be aware of on-going trends and
innovations and should equip themselves
accordingly.

Conclusion
• Hospitality firms are bound to face many kinds
of issues being operational, legal as well as
managerial which puts a negative impact on
the working. Hence they must work on them
as soon as possible to avoid future issues.
Other than this, the need is also to take care
of upcoming trends such as health conscious
nature of travellers, quick response from
company, unique offers among others.

References
• Barrett, 2018. Hilton Hotels to upgrade staff spaces to improve
the employee experience.
• https
://www.hrdive.com/news/hilton-hotels-to-upgrade-staff-spaces-t
o-improve-the-employee-experience/520422
/
• Statista. 2017.
https://www.statista.com/statistics/297758/number-of-hilton-wo
rldwide-employees
/
• Scott, K., 2018. Marriott Hotels and Wagamama named on
minimum wage non-compliance list.
https://www.employeebenefits.co.uk/issues/march-2018/wagam
ama-minimum-wage-non-compliance/