Contemporary Hospitality Industry Report: Structure, Trends and Roles

This report provides a comprehensive analysis of the contemporary hospitality industry. It begins with an introduction to the industry, defining its scope and structure, and then delves into the current structure, scope, and size of the industry, including its contribution to global GDP and various sectors such as food and beverage and accommodation. The report explores different operational roles within the hospitality industry, such as front desk services and housekeeping, and identifies skills gaps. It further examines the internal and external factors influencing the industry, including economic data, government policies, and market trends. The report uses the Hilton Hotel as a case study to illustrate operational and functional departments. Finally, the report concludes with a reflection on the current and potential trends in the hospitality sector.

CONTEMPORARY
HOSPITALITY INDUSTRY
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TABLE OF CONTENTS
INTRODUTION .............................................................................................................................4
TASK A...........................................................................................................................................4
Current Structure, Scope and Size of the hospitality industry ....................................................4
TASK B...........................................................................................................................................5
Different Operational roles to be performed within the hospitality industry ..............................5
Skills gaps within hospitality industry in relation to the range of various operational roles.......6
TASK C...........................................................................................................................................8
External Factors influencing the hospitality industry..................................................................8
Internal Factors influencing the business...................................................................................10
The hospitality industry is the fastest growing industries of world as compared with other.........10
The company is having special quality of traditional and continental foods prepared from the
ingredients imported from other countries.....................................................................................10
The chefs are highly specialised in offering the customers with high satisfaction for their orders
and attractive presentation.............................................................................................................11
The highly trained employees provide the customers with best services with effective response
for their needs................................................................................................................................11
The location of the hotel is at near to natural space that provides highly peaceful ambience from
the speedy city life.........................................................................................................................11
It could be accessed through any medium around the world that makes it convenient for the
customers to find............................................................................................................................11
The high-class amenities meet the standards and requirements of business class and royal class
people.............................................................................................................................................11
The products and services are not able to meet requirements of number of people at a time.......11
There is restricted restaurant space that makes the place crowded affecting the peace................11
The products are not well recognised by the people as they are not well marketed......................11
Hotel is also required to have feedback services to get the suggestions from customers for
improvement. ................................................................................................................................11
The industry is growing every year with rapid speed and this will bring new opportunities........11
The industrialisation would create new market for the industry to increase its customer base.....11
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Policies undertaken by the government to promote travel and tourism will increase the revenues
and sales ........................................................................................................................................11
The lowering credit rates will help the businesses to expand their operations over new regions 11
Increasing competition in the industry due to high profits is a threat............................................11
There is high labour shortage in the industry that makes the businesses to cut short business
hours...............................................................................................................................................11
Minimum wage requirements will increase the costs ...................................................................11
Current and Potential trends in the hospitality industry.............................................................12
CONCLUSION .............................................................................................................................13
Reflection ..................................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUTION
Hospitality industry is the part of service industry which comprises tourism. This
includes the different activities whose main goals is of providing services and satisfaction to
customers. It is divided into two main segments where first segment comprises lodging, staying
or accommodation industry and the second comprises foods and beverage segments.
Report will enhance the understanding of industry and assess the different roles and skills
shortages in industry. It will assess internal and the external factors which impacts hospitality
industry and about the current and potential trends and development influencing hospitality
industry.
TASK A
Current Structure, Scope and Size of the hospitality industry
Hospitality industry is most flourishing industries of world. The industry is broad in comparison
with the other industries. Tourism and Hospitality industry are related closely and play
significant role in the growth and development of other industries. It brings the growth of
industry. It adds to overall value to the hospitality industry
Current Structure
Hierarchical structure is followed in the hospitality industry. This structure has pre –defined
positions in the organisation. The organisational structure has people with clearly defined roles
and responsibilities. It helps in smooth execution of the work in organisation. It facilitates
effective communication in the organisation through proper allocation of the duties to every
employee (Law, Chan and Wang, 2018). This structure enables the management to maintain
certain level of centralisation in the organisation.
Scope and Size
The industry contributes around US$ 6.5 trillion of total business of the world. In UK, the
industry contributes 11% of total GDP. The sector generates 130000 jobs in the cafes &
restaurants, 25000 jobs for food take-ways, 150000 jobs in the hotels and 25000 jobs in the
accommodation services. It is the fastest growing in world and contributing significantly to the
GDP of economy. It has developed into multi-faceted industry. Digitalisation and technological
advancement have further helped the sector to grow at rapid speed. Due to importance of sector
economies around world are spending millions to enhance the growth and development of the
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industry. Also, the standards and quality of services demanded by the people are increasing for
the hotels and restaurants.
P1. Sectors that make up the hospitality industry are as follows -
Food /Beverage — Food or Beverage sector in hospitality industry plays a significant role as this
industry mainly deals with providing services to the customer and guests which stay in the
Hotels. Providing good food is the main motto of Hospitality industry and to serve the customers
best of their services (Elkhwesky and et.al., 2019). The Hospitality industry deals with the types
and varieties of food and products which is the focus of every customer and guests visiting the
Hotel.
Accommodation — The second most important aspect of the hospitality industry is the
accommodation factor which takes care of the providence of facilities to the guests and
customers acquiring the services rendered by the hospitality industry. Living is the second most
important factor which makes the hospitality industry best in its services. Accommodation in
hospitality industry includes place to stay which mainly focuses on the facilities available
through Hotels.
Different business types in hospitality industry are as follows -
Fast-food Restaurants — Fast-food restaurants in hospitality industry plays major role in
providing the food to the customers and this helps in analyzing the key strengths that customers
needs and wants are satisfied and changes are taken place when and where accordingly. Fast-
food restaurants are the best services in the hospitality industry which ensures that the customers
are interested in the variety of food items that have been displayed to them.
Fine Dining — Through fine dining in the hospitality industry, the growth of this business type
is serving maximum of the guests and customers by rendering them services accordingly
(Elkhwesky and et.al., 2019). This has also made customers aware what are the key trends and
effective services that are being provided to them that amuses them and attracts their attention
towards the unique systems and ways that hospitality industry is serving the customers.
Industrial Catering — Industrial catering refers to the technique of what is being served to the
customers through the hospitality industry. The industry is known for providing its services best
that are suitable are according to the needs and wants of customers which satisfies them the
catering services which Hospitality industry serves is known for its functioning on the best
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grounds.
P2. Hotel that is taken for the case is Hilton Hotels -
Operational Department is defined as the area of management in Hotel concerning designing
and controlling the process of production and redesigning business operations in the Hospitality
Industry.
Three examples of operational departments of Hilton Hotel are as follows -
Housekeeping Department — The housekeeping department of Hilton Hotel provides the
services of room allotment, number of guests for the accommodation in the rooms, cleaning
rooms and ensuring that the rooms are in better condition (Rutherford, 2021). The housekeeping
department verifies the best conditions of the rooms by providing various facilities to the guests
or customers.
Front Office Department — The front office department of Hilton Hotel performs various
functions like registration, reservation, reception, settlement of bills and managing room
assignments. From welcoming the guests and making them reach their respective rooms is seen
by the front office department of Hilton Hotel.
Food and Beverage Service Department — The food and beverage service department of the
Hilton Hotel concerns the food services which are catered to the customers of Hilton Hotel. This
department ensures that the food quality is being best served to guests. And along with this, the
waiters or waitress performs their duty of serving the food at respective places appropriately.
Functional Departments in Hotel concerns specific functions of company which focuses on
playing the important role in managing what are the key aspects and factors. Functional
departments are significant to Hilton Hotels (Ali and et.al., 2017).
Three examples of functional departments of Hilton Hotel are as follows -
Accounts and Finance Department — The accounts and credits department of the Hilton Hotel
concerns the financial balance of the that has been incurred per year. The information regarding
the balancing of profits and loss accounts is calculated accordingly. Handling of accounts and
finances is being managed by the Hilton Hotel department and skillfully. The department ensures
management of payroll systems and compliance with relevant laws is being followed properly.
HR Department — The HR department of Hilton Hotel develops job responsibilities and person
specification, focuses on designing jobs, hires and trains new people and advertises jobs through
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different media scales. HR department of the Hotel plays major responsibilities therein.
Marketing Department — Marketing Department of the Hotel carries out number of tasks. The
departments search the market needs and demands that are desired by guests. The marketing staff
develops new services and carries out sales promotion campaigns and advertising effectively and
efficiently.
P3. Considering Local, National and International economic data about GVA, tax contributions,
employment numbers and relative size and importance of hospitality inn these spaces is as
follows -
For Local Economic Data — GVA, tax contributions, employment numbers and relative size
along with importance of hospitality in these aspects is regarded as the most important as
diversified form of incurring accurate data which helps in analyzing the growth through financial
stages which the organization is being going through. The tax contributions are greater in
Scotland also there are higher contributions in GVA. Hospitality has increase the numbers
through which employment is being greatly achieved on the economic scale.
For National Economic Data — The hospitality industry is the fourth biggest employer in the
UK, business for 3.2m jobs through direct employment since 2016, and a further 2.8m indirectly.
The industry yields over £73bn of Gross Value Added instantly to the UK economy, and a
further £87bn indirectly. Importance of hospitality Industry in National economy is that the
industry accounts for serving its facilities to the customers and guests.
For International Economic Data — The hospitality industry is important for the International
Economic Data maintaining that concerns the tax contributions, GVA to the industry. This is
calculated through the contribution that has been made on the basis that it upholds the maximum
profits generating through hospitality industry and specifically tourism.
TASK B
Different Operational roles to be performed within the hospitality industry
Any sector of the hospitality industry would not be running smoothly without right resources and
right people at right departments. The operational roles may vary with the size of business but
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have below mentioned roles in common. The areas reflect different roles to be filled for keeping
organisation running. It is essential for the effective management of hotel.
Front Desk Services – They must deal directly with the guests or customers and are responsible
for handling and taking bookings. The role often requires candidates with specialised skills in
handling the guests and understanding their needs. All the essential requirements of customers
are fulfilled through the front office department services. Front offices staff deals with customers
bookings and the problems they face during their stay in the Hotel. Qualifications and skills that
are required at this position of being at front office is that the individual should have knowledge
about the hospitality that is being served to the customers, communication skills should be strong
enough to ensure the customers are able to understand what they say. The individual should
acquire degree in Hotel Management or any other related field.
Housekeeping – This department has role of keeping place and room tidy and clean. Team is
responsible for every detail within the rooms from cleanliness of sheet to keep toiletries stocked.
They reflect the standards and quality of services being provided by the hotel (Kandampully,
Zhang and Jaakkola, 2018). Day to day duties which the housekeeping department is that to
ensure that guest rooms, hallways, lobbies and other public areas are clean and ready to use.
Qualifications and skills that are required by an individual applying for the job are that the
individual should access management skills and attributes towards the Hotel. Hotel Mnagement
qualification should be acquired by the individual for the role. The individual needs to be skilled
for the job role in House keeping department.
Kitchen Staff – The hotel who is offering room services or restaurant services then it is essential
for them to have kitchen staffs which are highly competent and effective (Murphy, and et.al.,
2018). The kitchen is very essential part of the hotels and restaurants as the quality of food
provided depends over efficiency of the chef. It must be able to satisfy the needs of customers
and be able to provide them with quality food. Big hotel also requires effective catering team for
the business. Day to day duties of Kitchen staff are to make new varieties of food and distribute
the jobs to respective individuals in making available the food and beverages to the customers
appropriately. Qualifications and skills that the individual should access is that specialization in
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making different food items. Degree in Hotel Management will help the individual for the job
role.
Skills gaps within hospitality industry in relation to the range of various operational roles
Labour is single biggest cost for the hospitality institution, yet number of tourism and hotel
industry employers are facing second squeeze in form of industrial shortage for the qualified
employees. The industry may be considered as global level of the wealth increase, there are only
few qualified workers in the entire industry. People at large believe that it is golden age of eating
out in UK as great quality and variety of food is available widely. The restaurants are growing
with twice the rate of increase in population. The industry is facing skills gap and due to this
hotels and restaurants have also cut the business hours for retaining the staff.
Current Skills shortages
The hospitality industry is seeing shortages of skilled and unskilled workers. There are acute
shortages of waiters, chefs, cooks, and the others. Various positions in the UK hotels ho
unfulfilled because of labour supply shortages. The industry is facing serious hiring concerns.
The reasons for the shortages are many like low paying jobs, political crisis, anti – social
working hours and hike in restaurant openings. There are various challenges in the hospitality
industry that drive people out from it like evening, weekend and late night works, long shifts of
work and pressures from managers and supervisors (Feinstein, Hertzman and Stefanelli, 2017).
These factors discourage number of people to select it as career choice. The political landscape
impacts heavily over the skill shortages. For instance, number of workers from restaurants and
hotels has planned to leave UK due to Brexit uncertainty.
The industry offers generally low paid and low skilled jobs which are true to considerable extent,
it also provides large number of diversified opportunities. However, because of misconceptions
the youngsters are not interested in coming to this industry that result in the current & potential
skill shortages. The low pay has portrayed negative image of industry and discouraging many
students from choosing it as career choice.
Examples of different skill shortages in hospitality industry are as follows -
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The hospitality is suffering from the shortage of cooks, waiter/waitresses, chefs and
others. These skill shortages in the hospitality industry are there in the hospitality industry
presently. These skill shortages are currently the major drawback in the hospitality or hotel
industry.
Trainings and retraining the local people are considered as good solution for dealing with current
shortages. It is time consuming and long process which will not solve the problem in short term.
The managerial and supervisory programmes could be useful for gaining cultural awareness and
creating friendly, less stressful and rewarding work environment. Hiring students could also be
good solution offering them flexible working schedules. It may solve problem in the short run.
For example, the Travelodge decided to hire three thousand students in summer with the
contracts allowing them to work along with their studies is good example (Dogru and et.al.,
2020). The uncertainties to revolving around the Brexit should be dealt with immediate effect. It
will help in restoring confidence of existing workers involved in the hospitality industry. Some
hotels are also using technology to fill this gap. The hotel culinary teams are especially hard hit
by skilled labour gaps as many are turning to the cooking technologies which increase efficiency
like the vacuum sealed, pre – portioned menu items. Other are scaling down complexity or
burdening the existing members with the extra duties. These solutions are keeping the industry
players up despite of labour gap which are essentially stop gap measures.
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TASK C
There are different internal and external factors that are influencing the hospitality industry.
External Factors influencing the hospitality industry
PESTLE Analysis
It is a marketing principle that is used for understanding relation between the external
environment and company. The external factors that influence the industry are beyond the
control of organisation but influence the working and performance of the organisation.
Political Factors
This element represents the influence of government over industry by setting rules and different
regulations. The political influences such as Brexit had impacted the hospitality industry to a
significant level. It has affected the external sales and labour supply due to the uncertainties of it.
Also, the political unrest affects the economy like fluctuations in the currency rates that divert
tourism and decline sales. It also increases the costs such as taxes and duties over imports and
exports (Nusair, 2020). The measures such as minimum wage level increases cost of the
industry. Different operations are cut short to retain the employees. The increased tax rates also
burden the businesses reducing their profits and discouraging new entrepreneurs. There are many
variables which define the political factor more clearly. These variables include corruption, tax
policy, trade restriction, government policy, labour law, political stability. Due to such factors
political stability is hindered and affected.
Economic factors
There is high competition to fit in budget for hospitality industry. The economy plays a vital role
in the growth or development of any industry. It contributes significant part to the GDP of UK.
Though the economy of UK is stable, but the purchasing power of the people are weakening due
to falling sterling. The disposable income of the people of UK is defined by the stability of
economy as the economy is stable and country grows on the scale of excellence. Disposable
income of individuals is more in UK as the people spend more on in the Hotels. The industry is
seeing significant increase every year due to rising tourism and policies adopted by the
government to attract tourist from around the globe. The increasing population lays emphasis
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over the economy to create new job opportunities for the people. Other economic factors are
economic growth, inflation rate, disposable income, unemployment rate which is an important
part to be considered as economic factor. This plays an important role in analysing whether the
economic factors are being contributing to the hospitality industry or not.
Socio Demographic Factors
The social factor refers to society at large. It is essential for the firms to understand the current
and potential trends going in the industry. They cannot remain competitive in the market without
considering the demographic changes of the society. In the hospitality industry location plays a
significant role in attracting the customers. It is seen that hotels and restaurants around the places
of stations or near the natural touch receive increased brand awareness. Also, they must assess
the different marketing channels that could influence the customers most (Stylos and et.al.,
2018). Presently the information and news over social media are found to spread like forest fire
and is used by marketers to attract customers. Also, they help in being in touch with their
customers and informing them about the different offers and schemes. Social demographic
factors include age distribution, safety emphasis, cultural barriers, lifestyle attitudes, career
attitude, population growth rate etc. these factors directly affect the society at large. These
factors are considered important and significant on the scale that they concern the social issues
occurring in the society.
Technological Factors
It refers to automation and digitalisation taking place in the industry and need for the business to
adopt them. It is seen that in today’s high tech world companies that are not adopting them in
their business are moving out from the industry. The technological advancement such as use of
internet and mobile devices to attend the customers and taking their bookings has eased the
business to considerable extent. It has made the global presence of business around the world
which could be approached using internet. Also, the other machineries and equipment’s have
made the processes faster increasing the efficiency. The industry is also adopting other tools that
are helping to fill the gaps of labour shortages and to operate competitively in the market. It is
essential to adopt the technological advancements to increase the efficiency and output. Research
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