Hospitality Management: Holiday Inn Business, Departments, and Trends

This report offers a comprehensive analysis of the hospitality industry, with a specific focus on the Holiday Inn. It begins by defining hospitality and exploring the different types of businesses within the industry, including food and beverage, travel and tourism, entertainment, and accommodation and l...Read More

Hospitality
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
P1) Different Types of Businesses in Hospitality Industry and Diverse Offerings Provided by
Them.......................................................................................................................................1
P2 Range of operational and functional department in Holiday Inn......................................4
P5 Skills required for the role within hospitality industry and current skills shortages.........6
P6 Analysis of external factors that affects the development of hospitality..........................8
P7) SWOT Analysis on Holiday Inn....................................................................................10
P8) Current and Potential Trends In The Hospitality Industry.............................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Hospitality can be defined as the relationship in between the host and guest, or it can also
be said that the act or practise of being kind to the guests. The hospitality field, by definition, is a
service industry. Its task is to create shareholder wealth by servicing and satisfying guests. The
Hospitality Industry is consisting of broad categories of fields such as accommodation, lodging,
restaurants, transportation, cruise lines, and also some additional fields in the tourism industry. In
this assignment, the different types of businesses which the Hospitality Industry consists of are
explained (Ariffin and Maghzi, 2012). The main focus of this assignment will be on the Holiday
Inn Hotel which is situated in Denham. It was founded in the year 1952. There are different
functions which are done by this Hotel in its Operational and Functional Departments on which
also this assignment will focus. It is also affected by some factors in a positive or negative way,
and for analysing this the PESTLE Analysis on the industry as a whole is done. For knowing and
taking advantage of the opportunities available to the Holiday Inn Hotel, SWOT Analysis will be
done so as to know about the strengths and weaknesses, and opportunities and threats to the
company (Wang, Chen and Chen, 2012).
P1) Different Types of Businesses in Hospitality Industry and Diverse Offerings Provided by
Them
In the Hospitality, there are various types of businesses which are included. These
businesses also do have their own separate kinds and provide various services to their customers.
It focuses on the satisfaction of the customers by providing services and specific experiences to
them. The industry provides products and services to their customers such as meals, snacks,
accommodation, rest, relaxation to their customers. These products and services are also tangible
and intangible in nature (Boella and Goss-Turner, 2013). Tangibles are those which can be
touched and includes the products provided by the industry such as meals, snacks, etc.
Intangibles are those which cannot be touched but only felt and includes services provided by the
industry such as accommodation, rest, relaxation, recreation, service provided by waiter, etc.
The scope of Hospitality Industry includes a number of businesses that provides services and
facilities to their customers such as accommodation, meals, entertainment, gaming, etc. The
businesses which are included in the Hospitality Industry are discussed as under:
Food and Beverages:
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The first type of sector which is included in the Hospitality Industry is the Food and
Beverages. It is professionally known as F&B and has the largest segment in the Hospitality
Industry. It is mainly engaged mainly in the preparing food, meals, snacks and beverages for the
consumption of their customers on or off the company. The scope of Food and Beverages Sector
includes providing different types of services such as quick snacks, drinks, desserts to their
customers (Testa and Sipe, 2012). Further this sector is also containing many other different
types of businesses which are also discussed as under:
Quick-Service Establishments: These establishments can be defined as the food service
restaurants which provides quick snacks, drinks, and meals to the customers. The examples of
these service providers are KFC, McDonald, Burger King, etc. which provides food services to
their customers (Brotherton, 2012).
Catering Businesses: In this type business, food and beverage services are also provided to the
customers for some special occasion or event they are organising. The examples can be found in
the weddings, parties, etc.
Full-Service Restaurants: In this type of business, the customers are provided with a variety of
food services to their customers such as meals, drinks, desserts, and many other services in the
presence of a waiter which will be there to assist the customers.
Travel and Tourism:
Another sector of Hospitality Industry is the Travel and Tourism Sector. This sector
provides their services across the globe which includes the use of cabs, trains, buses, cruises,
ships, airlines, and the crew members to provide the services. It not only ends to leisure and fun
but it also includes many purposes for tourism such as educational tourism, medical tourism,
business tourism, holiday tourism, entertainment tourism, eco tourism and many more which are
provided by the Travel and Tourism Sector of the Hospitality Industry. In this sector also, the
main focus of the customers is to satisfy their customers by maintaining proper relationship with
them, by providing the best services to them in accordance with their demand and in an
affordable and fair price (Brown, Arendt and Bosselman, 2014). The scope of Travel and
Tourism Sector includes satisfying the customers by providing them various services such as
accommodation, food, recreation, travel to their customers. Through these services they promote
travel and vacations. Buses, trains, cruise ships are the part of Travel Sector. Travel agencies,
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tour operators, cruise companies, convention planners, visitor bureaus are the part of Tourism
industry.
Entertainment:
This industry relies on their customer's disposable income. Disposable Income can be
defined as the part of income which an individual is willing to spend on his wishes or are
available to spent (Wang and et. al., 2013). The goal of this type of sector is to refresh a person's
body and mind. This type of sector provides shows such as movies, theatres, attractions,
museums, sports which the customers want to visit and help them recreating and refreshing their
mood. It also covers activities which provides relax, rest and enjoyment to their customers. In the
scope of entertainment industry, it includes services such as which enjoys the direct interaction
of the people and influences greatly to the minds of the customers in a positive way (Buhalis and
Crotts, 2013). Some of the types are explained as under:
Marinas: This is the place mostly chosen by people for celebrating their happiness.
Sports and Gaming: Another aspect of entertainment industry is the sports and gaming which is
also an important part of entertainment industry such as golf, swimming pools, casinos, etc.
Bars and Pubs: These are also an important part of this industry as people having social and
professional scenarios depends heavily on this industry.
Accommodation and Lodging:
In this sector of Hospitality Industry services such as accommodation to the people are
provided including their food and various other facilities. These services are provided by the
hotels, resorts, suites and from many others which have a wide range of facilities in them to
provide customer with the best experience (Xie, Zhang and Zhang, 2014). The scope of
accommodation and lodging sector includes services such as accommodation which is covering
other many services such as housekeeping, reception, maintenance, cleaning services, etc.
Different types of hotel accommodation are:
Resorts: This is the most popular type of accommodation used by people for taking a break fro
their lifestyle (Chan and Hsu, 2016).
Suites: Also providing the same facilities as hotel but named as different because of their high
prices and services then hotels.
Lodging: It can be defined as an economical service taken by people for sleeping in between
their travels.
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P2 Range of operational and functional department in Holiday Inn
Holiday Inn is the large scale hotel owned and managed by British American and
subsidiary of Intercontinental Hotel Group (Xu and Gursoy, 2015). This hotel was founded in
1952 having head quarter in Denham UK. Holiday Inn has around 1145 locations in all over
country. Parent organisation of this hotel is Intercontinental Hotels Group. This hotel serves in
America, Europe, Africa, Pacific, etc. to provide different services to consumers. These days,
there is more trend for visiting different places for different reasons such as business purpose,
family outing, educational tours, trekking etc. Hence there is requirement of different services
such as food, Lodging, banquet hall, meeting halls, business corners, kids zone, lounge bar, pub,
spa facilities, etc. Hence there are many departments which helps to perform business operations
in effective and relevant manner (Chon and Yu, 2012). There is requirement of many activities
for providing satisfactory services to consumers. As there are many departments which perform
operations according to requirement of consumers, hence there is requirement of some formal
structure which helps to achieve business objectives in effective and relevant manner. Hence
there is tall structure followed by Holiday Inn.
Tall structure refers to the one long chain of command which connects different
departments. This structure is complex and hence there is requirement of more time to perform
specific operations. In this structure, there is less control to managers in order to perform
operations (Yeoman and et. al., 2012). In case of change in working style, then it is tough to
convey information to all departments because whole organisation is broken into different
departments. In case of Holiday Inn, there is confusion in working style which affects working
style of association. There is more control of top level managers hence lower level and
subordinate employees have less control to perform operations. Hence under this structure there
are some departments which helps to provide services to consumers. There are some functional
and operations departments in Holiday Inn (Deery and Jago, 2015).
Operations departments
Operations department helps to perform Hotel operations in effective and significant
manner. There is synchronisation in activities of Holiday Inn with the help of operations
departments. Some of the operations departments is as under-
Executives department- Executive departments includes top level managers of Holiday
Inn and departmental heads, managers, etc. These are the personnel who perform operations
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according to external market and plan business operations in effective and relevant manner.
These personnel are responsible to make decisions and then convey to middle level managers of
Holiday Inn .
Front office department- Front office departments refers to the unit which communicates
with consumers while they enter at Holiday Inn. There is query to consumers related to booking,
price, services, etc. then this is the department which deals with it to provide best experience at
Holiday Inn.
Housekeeping department- House keeping department basically deals with cleanliness
and hygienic factor of Holiday Inn. There are many guest which check in and check out by
staying at Hotel (Denizci Guillet and Mohammed, 2015). So in this case housekeeping unit has
to clean and ready room for next guest. Apart from this cleaning, washing, iron of linen, curtains,
dresses of workforce is responsibility of housekeeping department.
Engineering and security department- Engineering departments refers to the personnel
who preform operations by maintaining and taking care of plugs, lights, television, computers,
fitting, plumbing, etc. Hence maintenance department helps to provide appropriate and working
condition equipments to guest at Holiday Inn . Security is the department is the unit which
provides safe and secured environment to consumers. This department takes care about proper
locks, camera and other equipments which helps to provide safe environment to consumers at
Holiday Inn. There is requirement of fire extinguishers, emergency exists, etc. which are
required in case of emergency. Security department of Holiday Inn has to perform operations
related to proper working cameras, so in case of issue, it can be checked.
Food and beverages department- Food and beverages department is one of the major
unit which provides eatable to consumers. There is difference in demand of consumers on the
basis of occasions, geographical region, etc. so this department has to provide products according
to requirements. This helps Holiday Inn to provide satisfaction to consumers and maintain long
term relations (Harrington and et. al., 2014).
Functional departments
With the help of functional department, business operations of Holiday Inn are performed
in ethical and relevant manner. There are many stakeholders who are associated with
organisation, so in this case it is responsibility of managers to plan operations according to legal
laws and regulations. Some functional department is discussed as under-
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Accounting department- Accounting department refers to unit which deals with finance
of Holiday Inn. There are many consumers which check inn and check out on reservation or
emergency basis. Hence whole payment made by consumers. Hence with this department there is
proper accounting system to provide knowledge about financial position of Holiday Inn.
Sales and marketing department- Sales is the activity with which Holiday Inn can
generate revenues. In this department there are some individuals who perform operations to
communicate with consumers when they visit hotel for booking purpose. They visit them rooms,
banquet hall, conference hall, etc. as per their requirement (Kara and et. al., 2013). Marketing
departments performs activities which helps to communicate about services offered by Holiday
Inn. This is relevant for making good image in industry and competing with competitors.
Research and development department- Research and development department refers to
analysing external market and then plan business operations according. There are man changes
which are taking place in external environment for instance changes in consumer demand, so in
this case research and development department has to provide appropriate way to provide
satisfactory services to consumers.
P5 Skills required for the role within hospitality industry and current skills shortages
Hospitality industry is very vast because there are many services provide by this sector.
Hence they have different roles and responsibilities which helps to provide best services to
consumers. There are many services such as bar, pub, room service, house keeping, etc. which
helps to provide satisfaction to consumers. There is discussion about some roles of hospitality
industry in which there is requirement of some skills to provide best services (Chon and Yu,
2012).
Bar attendant-Bar attendants refers to person who works to maintain good and vibrant
environment of pub, club at hotels. There is requirement of some skills which helps to provide
satisfaction to consumers. Skills includes good interpersonal skills, good organisation skills,
good presentation skills, willingness to learn, ability to work in team, responsible attitude
regarding health and safety regulations, ability to deal with sudden changes, etc.
With these skills, they are able to make bar, pub as good place where people can enjoy
drinks. This is significant for hospitality industry to provide satisfaction to consumers in
enjoying moments at bar and releasing their stress.
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Bar attendants of Holiday Inn has some shortage in these skills, such as they do not have
ability to deal with changes which happen suddenly, they are not able to work in team. Due to
this bar actiities gets disbursed which affects consumer satisfaction.
Catering assistant- As catering assistance, it is responsibility of organising and preparing
eatables, setting arrangements as per requirement of client related to ambiance, serving style,
menu, etc. (Denizci Guillet and Mohammed, 2015) There is requirement of some skills such as
organising skills, ability to work quickly, high standards customer service, ready to learn new
things, good personal attire, ability to follow instructions and preparations of food items
according to customer demand, good communication skills, etc.
With the help of good communication skill of catering assistance, consumers feels that
they are treated very welly and they get quality of services as per required because food is the
prime thing which consumer wants when they staying or dinning out. This boosts because of
hospitality industry.
At Holiday Inn, catering assistant has less skills which affects performance of consumers
such as they have less personal skills, so they are not able to interact with consumers in effective
manner. They are weak in reading instructions before preparing and presenting food. They have
less ability to analyse demand of consumer and then provide best services to them. This
sometimes affects consumer satisfaction because they do not get what they want.
Food and Beverages manager- Food and beverages manager are responsible to supervise
purchase of food items, analysing pricing of things, menu planning, ensure quality of food items,
proper maintenance of equipments, proper cleaning, supervision of crockery, cutlery and
utensils, etc. (Li and Law, 2012) Hence there is requirement of some skills to perform operations
in best and relevant manner- organising skills, time management, ability to pay attention in case
of pressure, deal with change in demand of consumers, high standard personal grooming, ability
of manage team, ability to work with diversity, good negotiation skills, dispute resolving ability,
etc.
With the help of food and beverage manager, it is easy to provide good experience to
consumers in hospitality industry and they are ready to avail services again. In case of any issue
in food, then it gives good impression regarding hospitality services.
At Holiday Inn, there are some problems faced by food and beverage manner because
they are not able to work under dynamic environment. As in food and beverage department many
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employees are working having different values, so they are not able to manage team. There is
lack in innovative skills, so they are not able to implement quickly new dish in menu.
Director of operations- there are many operations in hospitality industry, so in order to
maintain coordination among different departments, director of operations is hired. He is the
person who keeps eyes on proper synchronisation in business activities. There is requirement of
some skills in order to perform operations in effective manner (Deery and Jago, 2015). Skill such
as knowledge about technology, planning of training events, implementing best technology at
work place, creating coordination among team mates, communication sills, good verbal and
writing skills, presentation skills, proper market analysis, etc.
With this role, hospitality business can maintain proper performance operations in
effective without duplication of activities. Targets and gaols can be achieved within specified
time and budgets.
Directors of operations at Holiday Inn has shortcoming in skills such as they have
aggressive and reactive nature, so they are not able to take appropriate decisions. Directors have
less knowledge about technological aspects which affects working style of whole organisation
for instance: when director of operations wants to communicate with internal or external party of
organisation, then they are not able to do so because of lack of IT skills.
P6 Analysis of external factors that affects the development of hospitality
Hospitality industry plays vast role in economy of UK, hence this industry lays important
role in industry. There are many changes which are taking place in external environment such as
change in consumer demand, legal laws and policies, etc. In hospitality sector, there are different
services such as restaurant, pub, accommodation, restaurant, event planning, etc. Hence in this
case there is requirement to analyse external market by managers of Hospitality organisations. In
order to provide satisfaction to consumers, then external analysis must be done (Law, Buhalis
and Cobanoglu, 2014). PESTLE analysis is the technique which is used for analysing external
market.
Political Factor- Political environment refers to the role of government parties in
running hospitality business. There are many changes which are taking place in political
environment because political parties are not stable.
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 Hospitality industry is backbone for government of UK, so the government is making
policies which helps in making sustainable presence of organisations in the industry. This
is positive aspect for growth and development of hospitality industry.
 While there is negative impact as well because in case of terrorist attracts government
make some modifications in their policies, so hospitality industry gets affected in
negative way due to which there is reduction in tourism rate because they have fear in
their mind (Leung and et. al., 2013).
Economic Factor- Economic factor includes tax rate, inflation deflation rate, interest
policies, exchange rate, etc. formulated for hospitality industry.
 In UK, there are many people who visit and accommodate people for different purpose.
Hence there is revenue generation with hospitality industry in the form of payment for
luxurious services, exchange of currency, etc.
 While in case of inflation of economic rate, this affects tourism business because people
do not prefer to visit countries which has expensive economic rates. Hence there is
negative impact on hospitality industry .
Social Factor- Social factor refers to the difference in demand of consumers because of
change in cultural values.
 Social factor has direct impact on hospitality business as per change in demands of
consumers, managers analyse their demand and then provide services. Hence consumer
gets satisfied services which makes long term relations with them.
 There are different services provided by hospitality industry having different prices, so
this creates bifurcation among consumers which gives negative impact on hospitality
business.
Technological Factor- Technological changes involves facilities which are provided to
consumers and employees such as use of computers, social media technology, etc (Li and Law,
2012).
 With use of latest technology, there is ease in communication among employees,
employer and consumers of hospitality industry. Because of technology, there is ease in
solving query arise to consumers who wants to avail services from hotel.
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 With use of latest technology, there is risk of loss of data. For instance: if hospitality
industry loss data, then under “Data Protection Act”, there are possibilities of legal issues
for them which affects brand image of association.
Legal Factor- Legal factor includes legal and authentic rules and regulations related to
hospitality industry. There are different laws such as equal remuneration act, data protection act,
etc. Hence this is relevant for hospitality industry.
 When hospitality industry, perform operations within specified laws and regulations, then
consumers feels secured while travelling from one country to another. There are less
possibilities of government interference (Line and Runyan, 2012).
 There is requirement of legal advisor which is costly approach for hospitality industry. In
case of change in legal laws and regulations, then this is requirement of change working
style which is time consuming technique for hospitality business.
Environmental Factor- According to this factor, there is direct impact of external
environment on hospitality industry. In environmental factor, rain, snowfall, stormy weather, etc.
are included. Hence this affects tourism business.
 When there is good environment, then in this case many people prefer to visit different
places which is opportunity for hospitality industry to get more finance. For instance: in
case summer season, places having beaches, oceans are more preferably visited by
people, which helps to generate revenue for hospitality industry.
 While in case of peak season for hospitality business, then there is more pollution, traffic,
etc. which affects hospitality business is negative manner.
P7) SWOT Analysis on Holiday Inn
SWOT Analysis is an important technique which is used in order to analyse and evaluate
the internal and external capabilities of a company (Lub and et. al., 2012). The following is
carried over on the Holiday Inn Hotel which is situated in London, and SWOT Analysis is done
on this hotel for knowing about its internal and external capabilities. This Analysis focuses upon
four dimensions which are Strengths, Weaknesses and Opportunities and Threats. On the basis of
these dimensions, the internal and external capability of the Hotel will be judged which is
explained as under:
Strengths:
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 The strength of this Hotel includes the high brand recall because of its visibility and
excellent advertising.
 Due to the trust of people and its good quality services the Hotel is today having over
1200 Hotels worldwide which also represents good customer satisfaction level.
 It also provides a range of hotels to the customers to choose from which is also a place of
attraction to the customers and makes it different from others.
 InterContinental Hotels Group is its parent company which is having a very high brand
value which is also a strength of this Hotel (Mok, Sparks and Kadampully, 2013).
Weaknesses:
 In emerging economies, Holiday Inn is still facing problems in increasing their
penetration.
 Another weakness is that there are also a large number of competitors in the Hospitality
Industry to which the Hotel has to give severe competition and the market share is also
limited.
 Slow elevator are also a weakness of the Hotel as it consumes much time of the
customers which irritates them.
Threats:
 Intense competition not only from the well renowned hotels but also from the local hotels
which reduces the number of their customers.
 Terrorist activities are also a great threat to the Hotel as it reduces the rate of tourism of
people in the different countries. It reduces the incomes and revenues of the Hotel also.
 Due to high hotel and operational costs of the Hotel, it is also a threat because this will
also affect on the income and revenue of the hotel.
Opportunities:
 People are looking to visit new places. Here is an opportunity for the Hotel as it can
choose those destinations which mostly people wants to visit.
 Further it can also provide several seasonal offers in and according to the policies in
different countries so as to maintain the profitability and customer satisfaction level
(Nickson, 2013).
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 Another opportunity for the Hotel is that it can change the type of tours from business
tours to leisure tours as it is liked by most of the people and will result in increase in their
revenues.
With the help of SWOT Analysis, it will be easy for the management to improve its
strengths and eradicate its weak points where it is lacking behind by making suitable policies and
procedures so that the company can overcome the weaknesses. On the basis of judging about the
strength and weaknesses, the management can easily identify about performing or not
performing a task (O'Driscoll, 2012). By finding opportunities it will be able to convert the
potentialities into the reality which will increase the sustainability of Holiday Inn. And threats
will also make the Hotel aware about any potential threat which can affect the working of the
hotel. Holiday Inn will be able to make suitable decisions by doing SWOT Analysis for its future
growth and development.
P8) Current and Potential Trends In The Hospitality Industry
Current Trends in Hospitality Industry:
 Globalisation: In the current trends of Hospitality Industry, globalisation is covered. It is
so because it had made travelling across the countries more free and easy. Due to this it
has give rise to the tourism all over the world and had made a certain increase in the
international tourism receipts which has been possible only with the help of globalisation.
 Safety and Security: This part has come as a trend in the Hospitality Industry because of
several terrorist attacks in some countries which also has reduced the rate of tourism, as
well as the another reason is also because of kidnappings, robberies, assaults of the
touristers. Security of all types of hospitality and disaster plans should be made in order
to overcome for each possible threat. Personal security of the guests must be at the first
priority. Huge amount are invested in order to meet proper security requirements at most
of the international airports (Raj and Griffin, 2015).
 Diversity: The Hospitality Industry is the most diverse industry among all industries in
terms of employee population and number of guests. It provides a new opportunity to the
travellers to make their visit at those places which can give them an understanding of new
cultural experiences for both employees and touristers.
 Service: Due to the change in the consumption way of customers and the global
competition, quality plays an important role in both attracting and retaining the service
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customers. Quality of Service and the customer satisfaction are the most important
differentiating factors in almost all hospitality environment. As service is at the top of
expectations of customers so it is very essential for every hotel in the industry to make
their services to be capable of catching and attracting the customers (Riley, 2014).
 Technology: It can be said as a force of change that drives the present efficiencies for an
organisation in an improved and better way and integration for providing good guest
services. In this industry, technology is used in a way for increasing and gaining the
competitive advantage for the Hotel such as efficient use will make improvements in
their operational efficiencies. Order will be put faster, better and in cheaper way.
 Demographic Changes: The global population is gradually increasing and many retired
persons as they have time and money for making avail to the hospitality services. These
days, there are many people who are engage in travelling from one place to another for
different reasons such as educational tours, trekking, family visits, etc. (Ryan, 2015). For
example: old age people wants to avail services from pilgrimages, then they want proper
facility to stay, while educational tour requires specified basic services to reside while
touring. Hence there is difference in demand of consumers as per requirement. Hence in
future as per change in demand of consumers, hospitality industry has to up- grade their
services in order to provide satisfaction to consumers.
Future Trends In Hospitality Industry:
 More importance will be given on the use of internet and technology. It will help the
companies in the industry to give severe competition to each other and stand in the
market (Singal, 2014).
 In future trends it can also be included the hotels will be developed and used for multi-
purpose such as including the facilities of casino, shops, theatre, parks, etc. in it so that it
can be availed by the customers.
 The services of Hotels can be improved in future such as by making the hotels as
intelligent hotels. It can be done by making changes with advanced technology such as
using the fingerprints of the guests for the purpose of checking in and checking out
timings.
 Increasing the employees salaries for reducing the employee retention rate as high as
possible (Sisson and Adams, 2013).
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CONCLUSION
From the above given data it can be concluded that in the hospitality Industry there are
different types of businesses which are provided by the Hospitality Industry. In Holiday Inn
Hotel, there are different departments and there proper coordination will help in the successful
running of the Hotel. This efficient working of all the departments will help the Hotel in
generation of revenues for the Hotel. Proper relation with the customers will also help the
company in developing a positive image and reputation of the hotel, which will also help in
improving the customer service as good behaviour with customer will make them to tell their
problems at the initial level which will be then solved and lesser the complaints of the customers.
With the help of PESTLE Analysis, the external market of Holiday Inn is also analysed and
SWOT Analysis is done for analysing the internal and external capabilities of the Hotel which
can be said as good, clear from the above discussion. In addition to this, there hotels must
analyse and adapt the current and future trends in the industry and make right adaptions, as well
as they should use new technologies in order to enhance their competitiveness. Moreover, the
hotel owners should focus and make efforts in order to attract the potential customers and also
find ways to retain effective, diverse and competent staff.
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