Contemporary Hospitality Industry Analysis: Holiday Inn Report, UK

This report provides a comprehensive analysis of the contemporary hospitality industry, using Holiday Inn as a case study. It begins by defining different types of businesses within the industry, such as accommodation, food and beverage, travel and tourism, and entertainment, along with the services they offer. The report then examines various operational and functional departments within Holiday Inn, detailing their roles and responsibilities. It also explores the direct and indirect impacts of the hospitality industry on the UK economy and other countries, highlighting key factors driving growth, such as the expansion of international hotel chains and franchising agreements. Furthermore, the report investigates different operational roles within the industry, the skills required, and current skills shortages. A PESTLE and SWOT analysis of Holiday Inn is conducted to assess the impact of macro-environmental factors and internal strengths and weaknesses. Finally, the report appraises the implications of current and potential trends in the hospitality industry, providing specific examples and concluding with an overview of the key findings.

Contemporary Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of business within hospitality and products and services offered............3
P2 Examine a range of operational and functional departments within a chosen hospitality
business ..................................................................................................................................4
P3 Direct and indirect impacts of hospitality industry on UK economy and other countries 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.................................................................................................................................7
TASK 3 ...........................................................................................................................................8
P6 Macro environment factors and their impacts on hospitality industry..............................8
P7 SWOT Analysis of Holiday Innovation..........................................................................11
TASK 4..........................................................................................................................................13
P8 Appraise the implications of current and potential trends in the hospitality industry
providing a range of specific examples................................................................................13
CONCLUSION.............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality industry plays very essential role in growth of economy of a nation as it not
only satisfies the needs of travellers but also provides good support in building wealth of
country. Several kind of business like pub, restaurant, hotel etc. comes under this sector who
provides different kind of services and facilities to travellers so as to satisfying their needs and
wants. Chosen organisation for this project is Holiday Inn which is a hospitality organisation and
based in Buckinghamshire, UK. Assignment will be discuss about the contribution of hospitality
in local, national or international economy along with different kind of business and their
offerings. Different operational roles along with required skills for performing this role will also
covered in this report. PESTLE and SWOT analysis for taken organisation will also conducted
so that positive and negative impact of internal and external factors on the profitability and
operations will be identified effectively. At last, report will discuss implications of current and
potential trend of hospitality sector.
TASK 1
P1 Different types of business within hospitality and products and services offered
In modern competitive world, hospitality is one of the largest growing sector across the
world because it represents the cultural values of nation to the travellers who comes in the nation
from different location. Each hospitality organisation have responsibility to provide effective
services to the tourists so that growth and sustainability of organisation can be maintained in
marketplace. This industry is segmented in several parts whose main motive is to fulfilling
required demands and needs of customers through providing effective facilities to them.
Hospitality industry includes several kind of businesses which are mentioned beneath along with
diverse services:
Accommodation: Accommodation can be defined as staying in hotel along with having
food, room or house boat. It is one of important aspect of hospitality industry whose main
motive is to provide comfort zone to travellers while travelling. It is segmented into several parts
such as hotels, resorts, camp grounds etc. that provides quality food and accommodation
services to the visitors. Whereas, Lodging is refers to providing place in hotels or resorts for
sleep somewhere to travellers during travelling (Madera,and et. al., 2017).

 Food and Beverages: Range of this sector is also broad because it started from a normal
coffee shop to a luxurious restaurant because it provides several services to customers
which are defined as below:
Quick-service Establishment: This sector is also called fast food restaurant whose
targetted customers are those who wants expected services in a short span of time-frame.
Catering businesses: This sector is specially designed for providing food and beverage
services on special occasions like wedding, seminars, kitty parties etc.
Full-service restaurant: This sector of food and beverages offers meals, drinks and
many more at a specific place to guests in which guests comes, books table and order food
whichever they want.
 Travel and tourism: This is a broader concept of hospitality industry that is specially
designed for providing travelling services to travellers. It includes train, cruise, airlines in
its services along with organises formal and informal tours for business, education or
entertainment for different kind of travellers.
 Entertainment: Visitors when visits at a new place they wants some extraordinary
things so as to making their trip more enjoyable or comfortable. Therefore, this sector is
designed in hospitality sector that offers sports, gaming, pokers, casinos and many more
facilities to travellers (Long, 2013).
P2 Examine a range of operational and functional departments within a chosen hospitality
business
Whole functioning of a hospitality organisation is depends on the efforts of people who
are working or providing their services in hotel. Organisations which are comes under the
hospitality industry having same goals or objectives such as satisfying the demands or needs of
customers so that growth and sustainability can be achieved in marketplace. These goals can be
achieved by management of Holiday Inn through managing all functions along with taking
efforts from employees of operational and functional departments. Departments along with their
roles are described as below:
 Operational department: This division have duty to manage or control each activity of
daily basis so that business operations can be carried out in smooth manner. There are
several divisions that performs their services under this department are given as below:

Front office: Staff Members of this department are responsible to interact with guests
firstly on the behalf of organisation along with solving queries and handling bookings. In
addition, this division of Holiday Inn consists cashier, reservation, receptionist all of them have
responsibility for handling or solving queries of customers who visits in the hotel so as to
making them satisfied.
House keeping: It is one of the important division of each hospitality organisation
because they are responsible for managing all things or cleaning the each area of hotel so that
any bad impression of services of Holiday Inn falls upon the customer's mind because it can
impact negatively on the brand image of firm. Therefore, it is very important for them to
managing each functions effectively so that good brand image is maintained in mindset of
customers (Suh, West, and Shin, 2012).
 Functional department: Functional department of Holiday Inn includes activities which
are related with management such as HR, finance so that desired goals can be achieved
through utilising effective resources. Description of these roles are given as below:
Finance department: This division of functional department is responsible for
managing income and expenses so that actual financial position can be identified effectively at
the end of year.
Human resource Management: This department is responsible for recruiting, training,
maintaining workforce requirement at workplace so that any problem can't be faced in
achievement of desired goals.
P3 Direct and indirect impacts of hospitality industry on UK economy and other countries
Hospitality organisations are very important for economy because they provide different
kind of facilities or opportunities to local individuals so that they can take growth or
sustainability in marketplace. In current scenario, Hospitality industry can be considered as one
of the fastest growing sector because it not only builds wealth of nation but also provide job
employment opportunities to the large number of individuals which automatically defines
positive impact of hospitality industry at local, national or international economy. Detailed
description of positive impact on several kind of economies are given as below:
Local economy: Hospitality organisations operates their business operations at each
level. Hospitality firms provides several job opportunities to local individuals in form of guides,
artificial crafts or designs etc. so that their living standard can be improved. Hospitality industry

also satisfies the needs and wants of travellers and local customers so that it can be said that this
industry is impacting positively on the local economy and its people.
National economy: Hospitality sector in United Kingdom is rapidly growing due to
which it is positively influencing on the national economy. Hospitality sector is also known as
third largest sector in terms of employment provider across the UK. As a result of it, this
industry is not only providing job opportunities throughout the UK nation but also providing
support in national economy in terms of providing tax duties. According to a report, around 37.9
million visitors have visited UK in 2018 and an amount of 22.9 billion was spend by them for
experiencing leisure facilities during travel (Britain's visitor economy facts, 2018). Therefore, it
can be said that this industry is impacting positively on the national economy
International economy: There are several multinational organisations are exist in UK
which are operating their business functions in several nations due to which they are
contributing in growth and development of global economy. According the report of Online
statistical data, UK Hospitality industry have surpassed the mark of £100b in 2018 that defines
huge positive impact of this sector on international economy.
Key factors driving growth
Expansion of international hotel chains and brand identity: Entry of multinational
hospitality organisations provides growth at local or international because their brand image
supports them in attracting large number of customers. Multinational hospitality organisations
having good brand image among customers due to which most of the customers prefers to stay
and take services in these hotels. It impacts positively on local economy as employment
opportunities are provided by these firms to the local people. Growth of these organisations
positively impacts on national and international economies as it not only supports in wealth of
nation but also increase attraction of visitors from different nation towards offerings of these
organisations (Tesone, 2012).
The growth of franchising and licensing agreements: Franchising and licensing
agreements are becoming popular in nowadays within the hospitality industry because it requires
low cost and provide better results. Several multinational organisations are using these
agreements as it helps them in making good brand image in a new market area with a specific
margin of profit. This will automatically leads positive impacts on local and national economy as
it provides employment opportunities to the several individuals who are living in nation. Due to

growth of hospitality industry, several fast food chains like McDonald, Pizza-hut, Burger King
etc. have used these agreements for entering in market of UK.
TASK 2
P4 Investigate a range of different operational roles within the hospitality industry
Several roles are performed by employees of Holiday Inn which are discussed as below:
 Operation manager: It is performed by operational managers of Holiday Inn in which
they monitors or supervises the work that is performed by other employees and
departments so that good impression of hospitality services can be posses on the mindset
of customers. Operational managers of Holiday Inn are also responsible for ensuring that
required services are provided to customers or not if not then they have duty to rectify
this immediately so that better outcomes will be received in future.
 Front Line manager: Front office is the first office that interacts with customers or
visitors on the behalf of Holiday Inn. This department plays very important role in
creating good impression of hotel in the mindset of customers at their entrance in hotel.
Front line managers of Holiday Inn are also responsible for solving the queries or
concerns of guests and if not then they have duty to contact with right department so that
problems or queries can be solved effectively (Blanchard, and Higgins-Desbiolles, 2013).
 Back office manager: This division of Holiday Inn not interacts directly with the
customers but it supports the firm in managing expenses and income level so that roles
can be performed effectively. Back office managers of Holiday Inn also provide support
to the management in maintaining all accounts information and details effectively so that
actual financial position can be identified effectively.
All above discussed roles are performing by managers of Holiday Inn effectively due to
which satisfaction level of customers along with growth of firm is increasing regularly in
market.
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages
Several skills and capabilities are essentially needed by the employees so that roles can
be performed effectively. Some of them are mentioned beneath which are needed by the
different managers of Holiday Inn are defined as below:

 Technical skills: These capabilities are very important among the employees of
hospitality industry because through acquiring these they can perform their work without
any error. These skills are very important among the employees who are performing their
duties in back and front offices as without working on software or systems they can't
perform or manage their work effectively.
 Customer handling skills: These skills are also important for the individuals who are
performing their duties in hospitality industry because it supports them in dealing with
customers who comes from different cultural background. By grabbing knowledge
regarding this aspect, employees of Holiday Inn will be able in handling grievances and
queries of customers which automatically leads the firm towards growth and
sustainability in market. Workers who are working in front and back office department of
Holiday Inn have to grab these skills as this will beneficial for them in fulfilling the
expectations of customers which automatically leads the firm towards high customer
base and growth in market (Brotherton, 2012).
Skills gaps, drivers and their impact -Communication and technical skills are lacking
among the individuals who are working in Holiday Inn due to which they are not performing
well on the given duties that can cause to customer dissatisfaction. Therefore, management of
Holiday Inn should conduct training as well as development programmes for the working staff
of different divisions so that quality standard can be meet effectively. Through improving
communication and technical skills, employees of front and back office will be able in dealing
with queries of customers of different locations which automatically brings loyalty among them
towards organisation and its offerings.
TASK 3
P6 Macro environment factors and their impacts on hospitality industry
Macro environmental factors is a combination of external factors of business
environment that consists of political, technological, legal, economic or many more factors that
posses impact on the growth and success of hospitality organisation in positive or negative
manner. These factors along with their impact are discussed as below:
 Political – This factor comprises of governmental policies, regulations and other policies
that can impact on the overall functioning of hospitality sector. Government of UK is

stable due to which tax duties are also constant in UK from a long time-frame that is
providing positive influences on the overall functioning of hospitality industry. Whereas,
Holiday inn's operations are exist in various nation such as Spain, America etc. that can
provide negative impact on the growth of overall hospitality industry of UK nation if
there is a change occurs in tax rates of these nations.
 Economic- This factor includes inflation rates, per capital income, exchange rates,
growth and many more elements that can impact on the growth and success of hospitality
organisation. After Brexit, demand of travellers were decreased as they are not preferring
to visit within the UK due to which sales figures and customer base of whole hospitality
industry were affected in negative manner. Whereas, for overcoming these influences
management of Holiday Inn should offer their offerings in lower prices so that demand
of customers can be increased towards the goods and services of firm (Chan,and Hsu
2016).
 Social- This factor is related with values, beliefs, taste and preferences of customers that
can poses influences on the overall growth and sustainability of hospitality organisations
in positive or negative manner. Demands and needs of customers can be changed over a
time period that can impact on the existing offering of respective organisation. In order to
overcome this influence, management of respective firm should conduct market research
on regular basis so that products and services can be provided by organisation as per
demand of customers.
 Technological- Technology is growing rapidly in hospitality sector therefore, it is very
important for each organisation that is engaged in hospitality industry to adopt advanced
techniques so as to increasing satisfaction level of customers. It is very important for
Holiday Inn to provide online ticketing or booking facilities to customers so that
customer will more attracted towards services of organisation whereas, if these
techniques will not use these techniques then it automatically impacts negatively on the
profitability and productivity of firm.
 Legal- It comprises of legislations and laws which are framed by government of UK for
protecting tourists or employees. Therefore, Holiday Inn and its managers have
responsibility to complying these legislations effectively so that positive brand image of
firm will be formed in front of governmental authorities. Whereas, if any change will

occur in these legislations in foreign countries then it will difficult for organisation in
managing their functions in differentiated manner that will impacts brand image of firm
in negative manner.
 Environmental- This factor comprises of environmental protection, utilisation of
resources in optimal manner, elimination of wastage etc. UK government is more strict
regarding the protection of natural resources and environment due to which they have
framed several laws like environment protection act in 2011. As hotel Holiday Inn is
adhering this legislation from starting then company can enjoys the benefits from
government. Whereas, natural resources like energy, water is highly wastage by Holiday
Inn that can impacts negatively on the overall growth of firm (Chon and Yu, 2012).
Pestle analysis for Marriot
Political factor: Government policy, tax policy, bureaucracy etc. are some of the
examples of political factor which are affecting directly or indirectly Marriott growth and
expansion. In order to run the business smoothly in the competitive world organization
investigate the political factor. By doing tactics are framed accordingly to meet the goals.
Economical factor: In the global market interest rate, laws, policies, tax rates etc. are
examples of economic factors. Marriott scan all this factors before entering into the new market
with innovative product or services. By doing so potential targets can be attracted easily due to
which profits can be gained respectively.
Social factor: Customer service, cultural taboos, health, leisure etc. are the factors which
are affecting the survival of the Marriott in the cut throat competitive world. In order to gain
competitive advantages in the market organization follow social factor.
Technological factor: Advancement in tools and techniques helps the firm to set tough
standards in the market. To generate huge profits in the market Marriott can adopt modern ways
in the market. As well as emerging needs of the customers are fulfilled.
Environmental factor: pH level of water, climate, pollution level etc. are the factors
which are affecting the survival of the Marriott in the market place. In order to develop good
will in the eyes of the customer for longer time duration.
Legal factor: Profit margin, viability of certain markets, product transportation etc.
affect the Marriott productivity and profitability ratio. To gain competitive advantages in the
global market firm frame tactics to overcome legal factors.

P7 SWOT Analysis of Holiday Innovation
The following analysis is used in order to know about the internal capabilities and
opportunities and threats of an organisation. The application of this analysis on Holiday Inn has
been provided as under:
STRENGTHS WEAKNESSES
 Good Customer base of the Hotel is
also its strength as there are around
1200 Hotels of Holiday Inn in the
country.
 Approx. 1200 locations in several
locations like Asia pacific, Spain etc.
that have build good strength of firm.
 In developed nations such as America
and Spain, organisation is not
performing well that have influences its
overall growth and profitability.
 Pre-booking services are not adopted
by respective organisation that can
leads dissatisfaction among the
customers.
THREATS OPPORTUNITIES
 Marriott, Hilton and more renown hotel
and their strategies in UK can become
threat for sustainability of firm.
 Natural climate of UK nation is not so
good that can become threat for the
profitability of firm.
 Due to fair trading policies,
Management of Holiday can build their
strong presence in Indian and Chinese
market.
 Seasonal and discount offers can attract
the large number of customers towards
the offering of organisation.
SWOT analysis of Marriott
STRENGTHS WEAKNESSES
 Product and services of the firm are
innovating and proactive in the market.
 Carries out strong and transparent
pipeline to explore across the
 Firm is more reliant on North
American market.
 Excessive focus on expansion of
business due to which customers’ needs

boundaries.
 Captured huge market ratio in the
global market.
are not satisfied.
 Organization is rigid in nature and
unwilling to change with the phase of
time.
THREATS OPPORTUNITIES
 Raising neck to neck competition in the
market.
 Gradually decreasing the UK economic
growth rate.
 Economic recession greatly affecting
business.
 Firm can switch to customer’s
behaviour in to bind them for longer
time duration.
 Focus on personalization will help the
company to raise customer base.
 In the global village there is huge
unexploited market.
Influence of SWOT Analysis on Decision Making
Management of Holiday Inn should make focus on their giant rivals and their strategies
so that suitable plans or policies can be formed which leads the firm towards high competitive
edge. In addition, for overcoming the threat of natural climate they should provide discount
offers or seasonal offers to their customers so that through satisfying their needs high growth and
sustainability can be achieved by Holiday Inn in Marketplace (Connell, 2013).
Marriott Influence of Swot analysis on decision making:
Marriott should focus more on changing environment and emerging needs of the
customers. The tactics should be formulated according to the dynamic environment so that best
outcomes can be achieved. By doing so tough standards can be set for other competitors in the
market. Providing discount on special; occasions will help the firm to gain goodwill in the eyes
of the customers.
Supply and demand of Marriott:
The supply and demand of the Marriott is not fulfilled because firm is not willing to
change their norms according to the dynamic environment. As well they are more focusing on

family traditions and values due to which emerging needs, demands of customers are not
fulfilled on time.
Supply and demand of Holiday Inn.
Holiday Inn marketing strategy is not efficient enough to attract potential customers.
Due to which the supply and demand of the customers are not satisfied on time. Organization is
lacking in promotional activities due to which innovative products are not able to reach out the
targeted customers in the market.
TASK 4
P8 Appraise the implications of current and potential trends in the hospitality industry providing
a range of specific examples
Current trends:
Trend 1: Hospitality industry in the current scenario provides pick and drop facilities top
their customers. Due to which sales volume of the company product and services raises and
profit is maximized. They provide effective transportation facilities for travelling to some other
places like, shopping etc.
Trend 2: In today's era current trend is of providing everything online. By this facilities
huge number of customer can be attracted towards the services. Providing all relevant
information on their official websites creates positive image for the brand in the eyes of the
customers.
Trend 3: The current trend in hospitality sector is of providing all necessary things
inside the hotel. Such as shop of clothing, jewellery, books, restaurants etc. By doing customers
can meet their needs under one roof without rushing from one place to another.
Trends Evaluation:
The indulging in current trend the cost of production is increasing day by day. Due to
which customers are switching to other opportunity which are cheap and affordable in nature.
Adoption of current trends creates a big threat for other small hospitality industry and their
survival is becoming difficult. As a result the prices of the product and services are becoming
costly due to which switching cost of customers are raising tremendously.

It is very important for each hospitality organisation to form plans and policies on the
basis of current and future trends so that current situation of firm will be improved. Some of the
current and future trends are described as below:
Current Trend Internet services- It is one of the fastest growing trend in hospitality industry which
helps the firm in attracting large number of customers as through it customers can easily
analyse reviews of hotel that will automatically encourage them to make decisions
whether to visit or not.
 Tech explosion- Large number of business persons regularly visits in UK for business
purposes due to which they follows a busy schedule in their daily life. They also not
prefers to disturb the staff members for solving their doubts or problems. Therefore,
management of Hilton should make focus on this trend and adopt customer service trends
accordingly.
Future Trend
 Direct Booking- Management of Holiday Inn should make focus on providing direct
booking facilities to their customers as it will automatically raise the satisfaction level of
customers towards the offering of organisation.
 Tracking facility- This facility will automatically supports the Management of Holiday
Inn in building image as a good service provider in mindset of customers while providing
them travel services (Dasgupta, 2012).
Ability of Holiday Inn in developing offerings to meet current trends- Management
of Holiday Inn should make their focuses on these trends so that through making changes
accordingly growth and sustainability will be gained by firm in marketplace. These changes
includes training programme as through providing these ability and efficiencies of staff members
will be improved which automatically leads the firm towards growth and sustainability.
CONCLUSION
It has been concluded from the above discussed report that Hospitality industry is
categorised in several parts like tourism, lodging, food and beverages, entertainment etc. whose
major focus is to increasing customer satisfaction through providing them services as per their
needs and wants. Several roles and responsibilities are performed by employees because their
efforts decides growth and success of organisation. Therefore, determination of skill gap is

important so that through arranging effective training programmes for them desired goals will be
achieved by organisation in given time-frame.