Report on the Contemporary Hospitality Industry: IHG Case Study

This report provides a comprehensive analysis of the contemporary hospitality industry, using IHG (InterContinental Hotel Groups) as a case study. It explores the diverse types of businesses within the industry, including accommodation, restaurants, and bars, and examines the relationship between hospitality, travel, and tourism. The report delves into the range of operational and functional departments within IHG, such as housekeeping, food production, marketing, and human resources, while also detailing the contribution of the hospitality industry to local, national, and international economies. Furthermore, it identifies different operational roles within the industry, encompassing skilled, semi-skilled, and unskilled labor, and assesses the skills required for various positions, including technical and practical skills. The report also highlights the drivers for skill gaps and their impacts on hospitality businesses, and concludes with a summary of key findings. The report also mentions the use of PPT slides to cover Tasks 3 and 4.

The Contemporary
Hospitality Industry

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Types of business in hospitality industry and diverse products and services which they
offer..............................................................................................................................................1
P2 Range of operational and functional department....................................................................2
P3 Contribution of hospitality industry to local, national and international economies.............4
Task 2...............................................................................................................................................5
P4 Different operational roles in hospitality industry..................................................................5
P5 Examination of skills required for roles in organisation........................................................6
Task 3 (Covered in PPT).................................................................................................................7
Task 4 (Covered in PPT).................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCE................................................................................................................................10

INTRODUCTION
Contemporary business environment means dynamic environment where number of
people are running their business by accepting the changes as per customers needs that helps to
increase the organisational productivity and profitability(Bharwani, Mathews and Ghura, 2019).
This report is based on IHG (Inter Continental Hotel Groups) that is British multinational
hospitality industry providing guest rooms and food services to their customers so they feel good
and spent their day easily. This is large size organisation that focuses on needs of customers and
offering then products accordingly. This report cover a discussion about types of business in
hospitality industry, range of operational and functional department, contribution of hospitality
industry to local, national and international economies.
Task 1
P1 Types of business in hospitality industry and diverse products and services which they offer
Hospitality industry – This refers as a broad category of services industry that are
provided to people for making happy that involves lodging, room services, food and drink,
living, event planning, theme parks etc. that helps to increase the brand position in market. In
context to, IHG Hotel group, management are providing different types products and services
that attracts customers and increase the organisational productivity (Yousaf and et. al., 2019).
The hospitality industry is related to various activities and services which are provided by
organisation to their customers who comes to visit the places and spent their holidays.
Organisation in relation to hospital is required to understand the needs and wants of their
customers so they can manage and retain them for the purpose of increasing organisational
productivity. In context IHG Hotel, classification of hospitality products and services are as
defined:
Accommodation: This means services are provided to customers that involves sheltered,
overnight staying and spending time with family and friends (Peters, Kallmuenzer and Buhalis,
2019).
Restaurants : When hotels are started to provide food and beverage services as per
customer demand and choices is categorised in to restaurants.
Pubs: This means a infrastructure where beers, drinks and foods also selling to
customers as per their demand.
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Bars: This refers as place of beers and drinks where people enjoy their day and night
with music and others (de Correia, Lengler and Mohsin, 2019).
Night clubs: This stated as entertainment place which is open from the evening until
early morning and people are enjoys.
Hospitality and food service provider: This category states that business concern which
is providing staying with food services can help to gain the number of passengers so they feel
good and increase the brand image.
The relationship between hospitality and travel and tourism sectors
People who goes to spend their holidays in other countries then they are required
hospitality services with travel and tourism sector. There is a good relation between travel and
tourism sector as travelling agency have directly tie up with hotels which helps to suggest the
customers to stay and get food services as per rating which helps to increase the business
activities (Martin-Rios and Ciobanu, 2019).
The tangible and intangible nature of the hospitality industry
Tangible nature: This means products and services which people can see and touch in
hotels. In IHG hotel, foods, drinks, hotel rooms and room services are tangible which are
provided by charging the prices (Myo, Khalifa and Aye, 2019).
Intangible nature: This refers as products and services which are provided by hotel
cannot see and touch which can only feel is intangible. This helps to increase the customer
satisfaction level of customers by delivering better quality of products and services.
P2 Range of operational and functional department
In organisation, all activities and functions are managed by operational department which
helps to increase the business performance and maintaining the profitability. In IHG hotel,
operation department records all customers, managing their details, getting their needs and
providing hotel services so business can be manage and maintain the productivity effectively.
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Figure 1Operational department, 2020.
Source: Operational department, 2020.
Operation department in IHG hotel:
Housekeeping department: This department is related to operation department which
plays a role of housekeeping and keep clean the rooms which attracts customers and make them
happy. In IHG, employees are providing housekeeping services, they maintain hygiene rooms
that attracts customers to live (Operational department, 2020).
Food production: The operation department of IHG hotel is understanding demand of
customers regarding food and provide kind of food that satisfied them and operate the business
successfully (Pusiran and et. al., 2020).
Food and beverage: The food and beverage department of IHG hotel are increasing
operation as they arrange the beverage and food for customers which increase productivity and
profitability effectively.
Functional department in organisation:
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Marketing and sales: This function is important in organisation which helps to increase
the business performance. In IHG hotel, marketing manager are using different sources such as
print media, newspapers, magazine etc. that attracts customers and encourage them to buying the
hotel products and services.
Production with HRM: HRM function is important in IHG hotel which helps to
maintain all activities by recruiting the employees for each department and managing the
activities. If there is any vacancy in production and food department then HR function is played
by manager which helps to increase the business performance and maintain the high profitability.
The managers understand customer demand and share with production department so kind of
food be provided to customers.
P3 Contribution of hospitality industry to local, national and international economies
Hospitality industry is contributing in economies which helps to increase the business
performance and make social economy. In organisation there is need of people who can work
collectively and increases the business performance by delivering best quality of products and
services. In context to IHG hotel, hotel services are contributing to the national, local and
international economies that are as defined:
Local – This means hospital industry is giving job opportunities to local person who are
residing in local areas, paying local taxes and delivering quality of services which can helps to
increase the performance. Local people have opportunities to get the job and fill their expectation
by getting revenues (Pius and et. al., 2020).
National- Hospitality industry is contributing in nation economies as when people spend
money in hotels, restaurants and entertainment venues that uses in making the strong economy.
Moreover, taxes are also paid by customers which helps to improve the economical condition of
a economy. For instance, IHG is locating at various place which provide a facility to customers
to book online and paid money. Taxes amount are uses in social welfare such as education,
hospitals etc. which make strong economy.
International – In international countries, hospitality industry contribute by offering job
opportunities, charging tax amount, collecting currency, improving living standard of people etc.
which helps to increase the economy and maintain the good performance. In Context to IHG
hotel, contributes in economy by taxes, increasing performance, adopting new technology and
corporate tax which make strong economy (Khatri, 2019).
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Task 2
P4 Different operational roles in hospitality industry
In Hospitality industry number of employees are working who understand the needs of
their customers and deliver them products and services that make them happy and give positive
feedback. This helps to increase the working of organisation and maintain good performance.
Operational roles means activities which is required to increase the activities and productivity by
managing all activities. This helps to increase the organisational productivity by operating
business successfully (Čech, Jindřichovská and Neubauer, 2019).
Types of labour and position in organisation:
Skilled: This means employees who are educated and degree holder working in
organisation as reputed position and managing all activities which helps to increase the
organisational production.
Semi skilled: This means semi skilled workers who are part of professional training and
needs more skills to perform well.
Unskilled: Those workers who are not educated that maintain the position which can
help to contribute in organisational activities and performance.
The operational and functional role in IHG are as:
Front line manager: This role is played by front office manager who keep records of all
customers and provide information to customers. In IHG, front line manager is performing this
role by providing information, handling calls and managing the information effectively.
Back office management roles: Ion hospitality industry, back office department is
managing all data and store the information about customers as details about next books which
helps IHG Hotel to operate the business successfully and increase the organisational productivity
(Balaji, Jiang and Jha, 2019).
Supervisory: Supervisor in organisation are those people who manage all activities and
records the performance by evaluating that helps management of IHG hotel to bring changes
accordingly and increase the number of customers. This helps to operate the business
successfully and increase the productivity.
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Production: For organisation it is important function that decide the productivity and
competitive advantages in organisation by running all functions effectively. In context to IHG
hotel, production and service department is performing this role by offering variety of services to
customers which helps to increase the business performance and maintaining the high
productivity.
P5 Examination of skills required for roles in organisation
Skills sets are the consider as knowledge, skills, abilities and experience to perform well a
specific job role. This can increase the organisational performance by managing the activities.
The manager of IHG hotel are having good skills and abilities who treat employees smoothly and
easily.
Hospitality skill sets:
Technical skills: These skills are required to deal with specific changes in hospitality
industry which can help to increase the business activities. In IHG hotel, manager is having
technical skills which helps to keep records about customers, managing all details and
introducing new technology and booking aonline etc. that can increases business performance
and productivity.
Practical skills: These are another skills which is required to deal and perform the functions
effectively. In IHG hotel, employees are providing good quality of products and services which
can help to manage the activities, retain the customers and delivering best hotel services which
increases business performance and maintain higher productivity (Surucu and Sesen, 2019) .
Drivers for skill gaps:
Driving skills shortage: This means skills are important that helps to perform the activities
and increase the performance. If employees are lack of skills such as communication, language,
delivering and other then they face the challenges and reduce the productivity.
High labour turn over: In hospitality industry, employees are having more expectation
regarding wages that should be filled. In case of not filling employees expectation they make
decision to leave, This can be challenge for organisation and affect the organisation.
Impacts on hospitality businesses:
Factors which are related to business has affected the business such as increase workload of
staff, de skilling of operations, quality standards, high operating cost and new working practices
that can impacts on business negatively. In context to IHG hotel, employees skills are important
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that can help to deal with situations w3hich arises in organisation and maintain the business. For
running a business management should provide a quality of products and hotel services,
managing information, recording details of customers are completed by skilled employees which
may impacts positively
Task 3 (Covered in PPT)
Task 4 (Covered in PPT)
CONCLUSION
From the above report it can be concluded that hospitality industry is running the
business by providing the different types of products and services that attracts customers.
Different services such as accommodation, food and production, drink and beverage etc. are
main functions which are managing the activities and increase performance. Different functions
are followed by managers such as operations and functional that increases organisational
productivity and profitability. Employees are required skill set which helps to accept the
challenges and changes in their organisation for the purpose of improving performance and
productivity.
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REFERENCE
Books and journal
Bharwani, S., Mathews, D. and Ghura, A. S., 2019. Business model innovation in the Indian
hospitality industry. Worldwide Hospitality and Tourism Themes.
Yousaf, S., and et. al., 2019. Occupational stress and its outcomes: the role of work-social
support in the hospitality industry. Personnel Review.
Peters, M., Kallmuenzer, A. and Buhalis, D., 2019. Hospitality entrepreneurs managing quality
of life and business growth. Current Issues in Tourism. 22(16). pp.2014-2033.
de Correia, R. J., Lengler, J. and Mohsin, A., 2019. Entrepreneurial approaches to the
internationalisation of Portugal’s hotel industry. International Journal of Contemporary
Hospitality Management.
Martin-Rios, C. and Ciobanu, T., 2019. Hospitality innovation strategies: An analysis of success
factors and challenges. Tourism Management. 70. pp.218-229.
Pusiran, A. K., and et. al., 2020. Hospitality internship program insights. Worldwide Hospitality
and Tourism Themes.
Myo, Y. N., Khalifa, G. S. and Aye, T. T., 2019. The Impact of Service Quality on Customer
Loyalty of Myanmar Hospitality Industry: The Mediating Role of Customer
Satisfaction. International Journal Of Management And Human Science. 3(3). pp.1-11.
Pius, A., and et. al., 2020. Contemporary Quality Management Approaches and Practices Within
the Hospitality Industry. In Contemporary Management Approaches to the Global
Hospitality and Tourism Industry (pp. 1-34). IGI Global.
Khatri, I., 2019. Information Technology in Tourism & Hospitality Industry: A Review of Ten
Years’ Publications. Journal of Tourism and Hospitality Education. 9. pp.74-87.
Čech, P., Jindřichovská, I. and Neubauer, J., 2019. Achieving a great reputation for corporate
social responsibility: study from the Czech hospitality industry. Scientific papers of the
University of Pardubice. Series D, Faculty of Economics and Administration. 45/2019.
Balaji, M. S., Jiang, Y. and Jha, S., 2019. Green hotel adoption: a personal choice or social
pressure?. International Journal of Contemporary Hospitality Management.
Surucu, L. and Sesen, H., 2019. Entrepreneurial Behaviors in the Hospitality Industry: Human
Resources Management Practices and Leader Member Exchange Role. Revista de
Cercetare si Interventie Sociala. 66.
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