Contemporary Hospitality Industry Analysis Report for Franklin Hotel

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the Franklin Hotel in London. It explores various aspects including different types of businesses within the industry, the range of operational and functional departments, and their interrelationships. The report delves into the contributions of the hospitality industry to local, national, and international economies. It examines the influence of franchising and licensing agreements on global development, analyzes different operational roles, skill requirements, and skill gaps within the industry. Furthermore, the report applies PESTLE and SWOT analyses to assess the external factors impacting the Franklin Hotel, evaluating current and potential trends in the industry and the hotel's ability to adapt. The analysis includes critical evaluations of the impact of external factors on trends and the overall development of the hospitality sector.

Contemporary
Hospitality Industry

Table of Contents
Introduction................................................................................................................................3
PART A......................................................................................................................................3
TASK 1......................................................................................................................................3
Different types of businesses within hospitality industry......................................................3
Range of operational and functional departments within a chosen industry.........................4
Contribution of hospitality industries towards local, national and international economies. 5
Interrelationships of the operational and functional units within a chosen industry..............6
TASK 2......................................................................................................................................7
Use of franchising and licensing agreements has influenced the global development of the
hospitality industry.................................................................................................................7
Different operational roles within hospitality industry and relative skill requirements as
well as shortage......................................................................................................................7
Skill gap within hospitality industry in relation to range of different operational roles........8
Impact of skill gaps have on hospitality businesses and valid solutions for addressing such
skill gaps.................................................................................................................................9
PART 2.......................................................................................................................................9
TASK 3......................................................................................................................................9
Analyse the external factors to determine its impact on Franklin hotel business through
PESTLE analysis....................................................................................................................9
SWOT analysis and their impact on decision making...........................................................9
Evaluation of the impact of external factors on the development of Franklin hotel Limited 9
TASK 4....................................................................................................................................10
Current and potential trends in hospitality industry.............................................................10
Evaluation of the ability of Franklin hotel to develop products and services as per the
recent trends.........................................................................................................................10
Critical evaluation of the impact of external factors on current and potential trends and
development of hospitality industry.....................................................................................10
CONCLUSION........................................................................................................................10

Introduction
Hospitality industry refers to the area of company that dedicates its primary
operational operations towards giving satisfaction to firm’s valued consumers to create its
excellent brand image in provided marketplace of the workforce. In recent times this sector
has acquire its importance, with small essence of innovation will make such industries even
better in terms of controlling the charts of top commercial entities in the globe wide. These
sorts of industries offer a broad range of services, including services such as; lodging
services, food and water services and any other associated problems with hospitality. The
current report will focus on operational working of Franklin hotel, London which is aiming at
expanding its business in Asian markets. Respective hotel is headquartered in London,
England, UK which was founded by Elisabetta Fabri. This report will highlight several
aspects when dealing in hospitality industries and challenges faced by managers of the firm at
the time of expansion. In addition to this, document will also highlight various services being
offered by the industry in its given operational regions.
PART A
TASK 1
Different types of businesses within hospitality industry
The hospitality sector comprises several categories, but customer service is the key
component in all industries (Atsa'am and Bodur, 2020). Various industries within the
hospitality sector guarantee a holistic approach to client’s demands. Different types of
businesses within the hospitality industry are as follows:
Lodging-Accommodations
Hosting is an entirely wide hospitality business, from bed and breakfasts and hotels to
other accommodation services facilities. In offering lodging services, client service is also
important. Not everything, too, is based on efficiency, integrated convenience and
international amenities (Chandra, 2019).
Food and Beverages
It might range from a modest thing like a bistro to a superior restaurant and every
restaurant between them. The food and drink business, as predicted, is further divided into
specialisations. Some of the followings are:

 Restaurants
 Fast chains of food
 Food shops and retail
 Takeaways
 Catering for business and industry
Travel and Tourism
A huge area of the entertainment business with numerous important participants
across the world is the travel and touring business. Most include railroads, aeroplanes, cruise
ships and a number of crew members (Eissner and Gannon, 2018). All in all, participants in
the tourism and travel industry are transferring people from one place to another.
Entertainment industry
In modern days, entertainment is a major element of our journey. Individual may not
be able to appreciate specific trip experience in full if their travel experience is not pleasant
and entertaining. So, it is necessary to have as many entertainment activities as possible for
the successful management of hotel companies (Gaol, Filimonova and Maslennikov, 2018).
Timeshare
Vacation ownership is a developing yet extremely significant segment in the hotel
industry. Under this arrangement, individuals or parties are entitled to a space for a certain
amount of time during the year.
Range of operational and functional departments within a chosen industry
Without the proper personnel and resources, the hotel would not work properly in the
proper departments. Below is an overview of the hotel structure whether individual is new to
the hotel company or merely have a fair share in fundamental research. Following the
functional areas of departments of hospitality firm of Franklin, London;
Executives: The managers are responsible for various additional areas, like
accounting, marketing and sometimes even reception services, depending on the way
respective company is running and how big respective company size is (Golubovskaya,
Robinson and Solnet, 2017).
Front Desk: While no operating sector is available within a hotel company, very little
can be disputed without the front office workers.

Housekeeping: It is a vital duty to keep their rooms neat and neat.
Company's cleaning crew usually takes charge of every aspect in a room, from smooth linens
to amenities in storage.
Maintenance: Even the highest quality electronics and utilities can break and fail.
More than ever, laptops, TV screens, gaming consoles, DVD players and other cutting-edge
technical features can be repaired and fixed in today's technology focused society
(Golubovskaya, Solnet, and Robinson, 2019).
Accounting: Each company requires enough accountability. Costs and revenue
tracking lets them finger the pulse of respective enterprise so that they may make changes
and adjustments as required.
Marketing and sales: Every company needs to be promoted. The marketing team
makes the prospects payable and the message of the brand. The team is accountable for the
newest markets and techniques, such as social media, content marketing, OTAs, and so on
should be kept up-to-date.
Kitchen staff: Managers cannot maintain company’s orders up to date and satisfy
their guest’s dinner demands without skilled cooking staff if they are a full-service hotel,
room services or both. A separate food crew is also needed for some hotels, particularly
meeting rooms.
Contribution of hospitality industries towards local, national and international economies.
The hospitality industry is one of the most important areas in the broader services
industry, which contributes significantly to a country’s economic development and wealth
generation (Kong and et. al., 2018). The hospitality business has made various notable
contributions to the economy at the regional, national, and international levels, as listed
below:
Employment generation: On a national and worldwide level, the hospitality business is in the
forefront of delivering work opportunities. Franklin hotels create both direct and indirect jobs
through supporting other areas of the economy such as food and beverage, transportation,
agriculture, and business services such as marketing and advertising, among others. This
industry employed roughly 2.5 million people, accounting for over 8.5 percent of all jobs in
the UK. It is the fourth largest industry in terms of employment. Tour guides, travel agents,
artists, and drivers are examples of indirect occupations.

Tax revenues: The hotel business is the UK government’s main source of revenue in terms of
taxes and VAT, having given almost £40 billion to the exchequer in 2014. This income is
created by hotels and other hospitality-related businesses, as well as taxes paid by employees
on their earnings and savings. Tourists who visit the country stay in hotels, utilise local
transportation, dine in local restaurants, and utilise other services such as medical,
entertainment, and travel, all of which create tax revenue for the UK government.
Exports/Inbound spending: Foreign tourists visiting the United Kingdom spend foreign
currency, which adds to the nation’s foreign reserves, which are needed to make imports and
exports of products (Kotler and et. al., 2018). According to the survey, inbound tourism and
exports create foreign earnings of £10 billion in 2014 for foreign exports, and spending by
overseas visitors excluding international students was predicted to be £22 billion in the same
year.
Investments: In both cases, international economies are created via infrastructural
development and the creation of jobs for local people. The hospitality business in the United
Kingdom received around £5 billion in foreign investment, resulting in the development of
other services and sectors as well as an increase in income.
Interrelationships of the operational and functional units within a chosen industry Front office and house-keeping department: These two departments constitute the
backbone of the Franklin hotel’s functional department, and they work in tandem to
guarantee that the hotel's operations run smoothly and efficiently. The front office
maintains and preserves records of room inventory available for allotment, which is
delivered by the housekeeping staff only after guests have left and the room has been
cleaned and prepared. The housekeeping department ensures that rooms are cleaned
and readied on time so that they can be assigned to other people. They also coordinate
with the front office department to let them know which rooms are still being cleaned
and which ones have already been cleaned. Purchase and kitchen department: The Franklin hotel’s purchase department obtains
materials and resources on behalf of other functional departments and maintains
targeted inventory levels to ensure the correct balance between demand and supply
(McIntosh and Harris, 2018). The kitchen department receives all food ingredients
from the buying department and verifies that the items used to produce food are of
good and high quality. It is also the job of the buying department to create effective

resource allocations based on the FIFA model and to ensure that there is little resource
wastage by using it before it expires and becomes bad.
TASK 2
Use of franchising and licensing agreements has influenced the global development of the
hospitality industry
Global growth refers to the changes and breakthroughs that are occurring around the
world in areas such as business, education, research, medicine, science, and technology.
Several countries are well recognised for some of the world’s most famous landmark
buildings, historical sites, palaces, and museums, which draw tourists from all over the world
and contribute to economic development. The United Kingdom is known around the world
for its historical significance and recognised attractions, which has increased tourist traffic
and, as a result, tax revenues and foreign earnings (Mohd Shariff, Mohd Nor and Zainol
Abidin, 2017).
Hotel brands have been able to start operations in international markets thanks to
franchising and licencing agreements, which has resulted in massive infusions of finance,
infrastructure development, and employment creation at the regional and national levels. The
creation of jobs and the flow of tourists into a country raise government revenue because
people with a lot of disposable income spend a lot of money, and tourists produce revenue for
the hospitality industry, which pays taxes to the government. Not only that, but several
foreign hostel brands are expanding into the United Kingdom through franchising and
licencing, supporting and developing other industries such as agriculture, technology,
communications, and FMCG.
Different operational roles within hospitality industry and relative skill requirements as well
as shortage
Operational roles in Travelodge Concierge: This is an entry-level position in the Franklin hotel, and it entails offering
a variety of services to customers while engaging with them. They respond to client
inquiries and anticipate what guests might expect. To deal with customers of all
temperaments, a concierge must be a problem solver with excellent customer service
abilities, patience, and tranquilly (Ribeiro, Vasconcelos, and Rocha, 2019). Event planner: Aside from providing lodging and dining, the Franklin hotel also rents
out event facilities such as conference rooms and outdoor settings for a variety of

events. The hotel’s event manager is in charge of making the necessary arrangements
and ensuring that meetings and conferences run well. House-keepers: These employees are in charge of ensuring that Franklin Hotel
Limited's hotels meet the required cleaning and sanitary requirements. They clean
rooms as well as other spaces such as the lobby, garden, swimming pool, and
restaurants. Housekeeper’s clean bathrooms, make beds, change and stock linens, do
laundry, and perform other tasks.
 Porter: Porters are in charge of managing baggage and transferring it from room to
lobby and lobby to room during check-in and check-out. A parking attendant or valet
is someone who parks guests' cars as they arrive at a hotel, restaurant, or other
location (Romero, 2017).
Skill gap within hospitality industry in relation to range of different operational roles Customer service skills: Because the majority of employment jobs in the hospitality
sector involve contact with clients, it is critical to have good customer service skills in
order to meet customer expectations and cope with people of all temperaments.
Customer service abilities decide whether consumers have a pleasant or bad
experience, so it is critical to be nice, helpful, and professional at work. Cultural awareness: Guests visit countries and hotels all over the world, and each
client has their own set of values, customs, and traditions. As a result, employees at
the Franklin hotel must be able to adapt to a wide range of attitudes and beliefs, and
cultural awareness is essential for them to work effectively with a diverse range of
clients and provide a positive experience (Siu, 2019). Communication skills: Although communication skills are necessary in every job,
they are especially important in the hospitality industry since they aid in interacting
and dealing with clients of various cultures, languages, ages, and temperaments.
These abilities aid working professionals in comprehending customers and
communicating in a straightforward and understandable manner.
Skills shortage in the industry Language skills: A good command of a secondary language, particularly a foreign
language, adds value to a hospitality professiona’s career. These abilities are
necessary for efficiently communicating with foreign customers and resolving their
problems. Employees might also be deployed abroad as expats to manage overseas
operations.

 Innovation and creativity: The hospitality sector works in an environment where
customers expect high-quality services that will make their visit or stay memorable.
Because these services might be changed suddenly and require specific processes to
supply services, the hospitality business lacks creativity and innovation (Ward and
Mattern, 2020).
Impact of skill gaps have on hospitality businesses and valid solutions for addressing such
skill gaps
Skills gaps in relation to distinct operational roles
 Team working skills: Because Franklin hotel’s operational and functional
departments are intertwined and contribute to delivering good and hassle-free
services, these abilities are required to operate cohesively with the other functional
departments. For example, the buying department and the cooking department, as well
as the front office and the housekeeping department, should collaborate.
 Work ethics: To be successful and provide a remarkable client experience, Franklin
hotel staff must work with integrity and commitment. Lack of work ethics and a
proclivity to skip work has resulted in high staff turnover and a labour shortage in the
sector. Multi-tasking skills: The Franklin hotel is experiencing a scarcity of multitasking
abilities in its personnel, which is causing increased work pressure and increasing
employee dissatisfaction. To deal with the job pressure and everyday operations of a
hotel, an employee in the hospitality business must be able to multitask and manage
multiple tasks at once. ICT skills: Because of technological advancements and the widespread availability of
internet-based technologies, it is now necessary for hospitality businesses to integrate
technology into their operations (Yan, Hu and Wu, 2021). Because the current
workforce lacks ICT skills, they are unable to keep up with the competitive climate
and operate productively.
PART 2
TASK 3
Analyse the external factors to determine its impact on Franklin hotel business through
PESTLE analysis
Covered in PPT

SWOT analysis and their impact on decision making
Evaluation of the impact of external factors on the development of Franklin hotel Limited
Covered in PPT
TASK 4
Current and potential trends in hospitality industry
Covered in PPT
Evaluation of the ability of Franklin hotel to develop products and services as per the recent
trends
Covered in PPT
Critical evaluation of the impact of external factors on current and potential trends and
development of hospitality industry
Covered in PPT

CONCLUSION
From the preceding discussion, it has been analysed that variety of talents are required
to perform efficiently and successfully in the hospitality sector, and these talents have a direct
impact on whether consumers receive good or bad service. Furthermore, the sector has
various operational and functional departments that collaborate with one another to ensure
that services are delivered on time and at a high standard. To reduce the impact of external
factors, it is necessary to undertake a PESTLE study, which aids in identifying potential
opportunities and difficulties that the organisation is likely to experience in the near future. It
has also been discovered that the hospitality business is a big sector in the service industry
and is the largest contributor to economic development.

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