Contemporary Hospitality Industry: A Novotel London Report

This report provides a comprehensive analysis of the contemporary hospitality industry, using Novotel London as a case study. It begins with an introduction to the industry, highlighting its economic significance, particularly in the UK. The report then delves into various business types within hospitality, including accommodation, resorts, and hotels, and examines the functional and operational departments of a selected hospitality company (Novotel London). It assesses the industry's contribution to local, national, and international economies, explores the interrelationship between operational and functional units, and discusses the influence of franchising and licensing agreements on global development. Furthermore, the report defines operational roles, identifies required skills, and addresses skill gaps within the industry, offering potential solutions. The report concludes with a summary of key findings and recommendations, providing a holistic view of the hospitality sector.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION.......................................................................................................................................3
Main Body...................................................................................................................................................3
Different business types within hospitality industry along with the diverse range of product they offer. 3
Functional and operational department in selected hospitality company.................................................4
Examine contribution of hospitality industry to local, national & international economies.....................5
Discuss interrelationship between operational and functional unit of selected business..........................6
Discuss influence of franchising and licensing agreements over global development of hospitality
industry....................................................................................................................................................7
Discuss the way in which global growth, franchising & licensing have contributed towards economic
worth within hospitality industry.............................................................................................................7
Define various operational roles in hospitality industry...........................................................................8
Skills for performing different roles within hospitality industry..............................................................8
Skill gap in hospitality industry in context of different operational roles................................................9
Discuss skill gap and also give suitable solution for meeting with gap issues.........................................9
CONCLUSION.........................................................................................................................................10
REFRENCES............................................................................................................................................11

INTRODUCTION
Hospitality is a wide industry that offers a range of services such as accommodation,
travel, hotels and more in order to meet with requirements of guest in best possible way. In UK,
hospitality industry plays a crucial role in economic development by generating employment
opportunities. It is considered as the fourth largest employer within country in which 4.9 million
people are working. Hospitality industry within UK provides diversify services such as resort,
accommodation, food and beverages and so on so that customers get highly satisfied (Imad,
2019) . In the current report Novotel London is taken into consideration which is a renowned
hospitality organization of UK. It offers different range of services such as room facilities, food
& beverages, Spa, bar and more. The present report included various kinds of hospitality
business along with the description regarding functional and operational department of
organization. It also includes contribution of hospitality industry in growth of local, national and
international economy. Interrelationship between functional and operational department and
skills needed for performing these roles along with the necessary skill gaps has also included in
the present report. The second part of report covers internal and external analysis tools like
SWOT, PESTLE analysis along with existing and upcoming trends within hospitality industry.
Main Body
Different business types within hospitality industry along with the diverse range of product they
offer
There are different kinds of business are included within hospitality industry and these
businesses are operated in different fields. For this regard different types of business are
mentioned as under:
Accommodation: Under this, services are provided to such people who travel from one
place to another and look for any place to stay. Main aim of this is to provide comfortable stay
facilities to guest so that they do not face any difficulties (Darcy, 2017). Apart from stay, they
also provide a lot of other facilities which is important for comfortable stay. Accommodation
services are provided by guest house, hotels and more.

Resorts: These services are provided for entertainment purpose so that guest can enjoy
for a particular period of time. There are some adventurous activities are also provided by resorts
so that people can enjoy in an effective manner.
Beach resort: It is gaining popularity nowadays as it offers holiday lodging facilities
along with the sea side view and swimming pool. With these facilities, it is easy to get engage
customers so that they visit frequently.
Suits: In this, luxuries and lavish facilities are provided to customers in order to maintain
higher brand reputation in market place. There are a lot of hotels such as Hilton, Marriott and
more which provide luxuries suites and other facilities (Martínez and Nishiyama, 2019).
Hotels: It is the most crucial types of hospitality business under which ample of facilities
are offered such as accommodation, food & beverages, spa and more. Here, different facilities
are offered at single place for ensuring higher level of convenience to customers.
Motels: It is a type of hotel where lodging facilities are offered with necessary parking
facilities. Motels are specifically designed for travelers so that it included large space for
parking. There is a space for cars just right next to each rooms (Lashley, 2016).
Pub: It is a place for enjoyment purpose where people can enjoy live music, concerts also
food and beverages at the same time.
Functional and operational department in selected hospitality company
It is stated that functional and operational department of hotel are helpful in executing
different activities in an efficient manner which is discussed as under:
Operational department:
This department focuses on each and every activity related to daily operations of hotel.
Some operation departments in reference of Novotel London are mentioned as under:
Front desk services: People of front desk services are responsible to interact with the
guest and help them in best possible way. They greet guests and also guide them during check in
and check outs (Chathoth and et. al., 2016).

Housekeeping department: These people are responsible in order to maintain clean and
hygienic environment within hotel premises. In addition to this, they also need to keep an eye
over stock availability within hotel and maintain adequate amount of inventory for meeting with
requirements of guests.
Food and beverages department: This department of respective hotel is responsible to
prepare necessary foods so that customers get highly satisfied. It comprises chefs and other
members for fulfilling different roles and responsibilities for meeting with requirements of
customers effectively.
Functional department:
This department focuses over proper execution of different activities. Some functional
departments are mentioned as under:
Maintenance: It is a crucial department which is concern with maintaining all the
necessary equipments, tools in proper condition (Choe, Kim and Hwang, 2020). In addition to
this, individuals of maintenance department also assess all the tools and equipments and repair
them as per requirement.
Human resource department: This department is responsible to hire suitable and
qualified people in order to perform different functions in an efficient manner. Apart from this,
HR department also arrange necessary training and development programs for enhancing
productivity and efficiency of employees.
IT department: IT people of respective hotel are responsible to maintain data and
information in an efficient manner. It is the duty of IT department to implement tools and
softwares so that company can attain predefined objectives within stipulated period of time.
Examine contribution of hospitality industry to local, national & international economies
Hotel industry significantly contributes in growth and enlargement of economy. It is
analyzed that hotel industry contributes nearly 4 % in GDP of UK. In this regards, contribution
of hospitality industry in growth of economy is given as under:

National economies: It is analyzed that there are various job opportunities generated by
hospitality industry so that people can meet with their necessities (Dixit, S.K. ed., 2017). In
addition to this, it also contributes towards economic growth of country by increasing GDP and
growth rate. In UK, there are various people are employed within hotel industry.
Local: Hospitality industry plays a significant role in growth of local economy as it
promotes tourism which is considered as the major source of earning for local people. Further,
tour and travel also helps to promote local places which further lead the economy towards
growth. Apart from this, it also encourages local talent and potential in an efficient manner.
International: At international level, hospitality organization has been recorded
tremendous contribution in economic growth. Due to this, foreign exchange is also increased
which is crucial for economic development. In addition to this, hospitality sector also facilitates
positive relationships between two countries.
Discuss interrelationship between operational and functional unit of selected business
It is stated that operational and functional units are crucial part of hotel industry. There
are a lot o activities are performed by both departments so that predefined objectives cab be
achieved successfully.
Housekeeping and maintenance: There is great interrelation between housekeeping and
maintenance department. Housekeeping people are responsible to maintain clean and hygienic
environment and make maintenance department familiar with any defects and repairing
requirements (Munasinghe and et. al., 2018). By this way, housekeeping people of Novotle
London are also able to provide better services to customers with the use of efficient tools and
equipments.
Front office and HR department: Front office people put first impression over guest
who visit in the hotel. These people need to be highly qualified, skilled so that they can interact
with guests in professional manner. Front service providers are required to have pleasing
personality and polite nature in order to deal with different situations arise within hotel. HR
department recruit qualified and suitable staff members for who can work as front desk service
providers (Sanjeev and Teare, 2016). In addition to this, HR department also arrange necessary
training and development programs for improving efficiency and productivity of front desk

people. Hence, there is great interrelationship between front office and HR department which is
important in order to meet with predefined objectives in an efficient manner.
Discuss influence of franchising and licensing agreements over global development of
hospitality industry
For entering into a new market place, there are different types of strategies can be
adopted which also affect global development. In hospitality industry, there are a lot of ways by
which a firm can enhance its current market space which also put a profound impact over
hospitality industry that is mentioned as under:
Franchising: In this franchiser give authority to user to execute business under the same
brand name. Main aim of franchising is to expand business at wide level. It is a way which is
generally used by multinational brands for business enlargement and growth. With franchising
hotels can easily explore their business in different countries across the globe. It helps in brand
enhancement and also improves brand reputation at global level (Torres and Mejia,
2017).Franchising allows hotel in order to earn substantial amount of profit margin by enlarging
current customer base in an efficient manner.
Licensing: It is a type of legal agreement where licensor provides a license or right to
utilize brand name and other sort of intellectual property rights. Main aim of licensing is to
expand business in different countries for earning significant amount of sales and profit margin.
It also plays a crucial role in global development and growth of hotel industry. Through license,
they can easily open branches under the same brand name which further drive sales and profit
margin.
With this, it is assessed that franchising and licensing agreements are really crucial and
more likely to have positive impacts if, implemented in an efficient manner. This is an effective
way for Novotel London to explore business significantly across the globe.
Discuss the way in which global growth, franchising & licensing have contributed towards
economic worth within hospitality industry
It is stated that there are a lot of methods are used within hospitality industry for driving
growth and potential. These methods are also important in order to expand business and current
level of sales and profit margin. Here, franchising & licensing are some ways which are

generally adopted by hospitality organization for business enlargement. In this regards,
contribution of these is given as under:
Franchising: It is a method which is opt while a company is looking forward to explore
in more countries. Under this, franchise holder grants authority to user to make efficient use the
brand name (Özduran and Tanova, 2017). It helps in expansion and also spread brand awareness
across different countries and region which is imperative for earning significant amount of profit
margin.
Licensing: It is a strategy which is used in order to enter into a new market place under
which business owner grants permission to licensee to use intellectual property rights and brand
name. It provides benefit in terms of increasing sales and profit margin which further lead the
company towards growth.
Define various operational roles in hospitality industry
Housekeeping manager: Here, housekeeping manager is responsible to manage clean
and hygienic environment in hotel. For this purpose, they need to supervise activities of
housekeeping staff and also need to provide them necessary instructions (Bagnaresi, Barbini and
Battilani, 2019). In reference of Novotel London, housekeeping managers are responsible to
maintain clean environment for satisfaction of guests.
Food and beverage manger: It is the crucial department of hotel where individuals are
responsible to prepare quality food and beverages for gaining higher level of customer
satisfaction. In case of Novotel London, chef and other associated staff keep a proper control
over quality of food.
Skills for performing different roles within hospitality industry
Skill set for operation manager: Individuals of operation department need to maintain
the data and information in such a manner that each and every person can easily extract
necessary information (Rodríguez-Victoria and et. al., 2017). For this, they need to have good
analytical, data management skills. In addition operation manager of respective hotel also need
to be well versed with technology and softwares.

Skill set for front office manager: Front office manager need to have good
communication, interpersonal skills so that they can provide best possible solutions to customers.
Skill set for housekeeping manager: They need to have competency to provide
necessary supervision and guidance to housekeeping staff. They also need to have the capability
to motivate staff in timely manner.
Skill gap in hospitality industry in context of different operational roles
There are a lot of departments in hotel such as housekeeping, operations, front office and
more. For meeting with requirements of each and every department, there is requirement to have
adequate skills. In current time, there are ample of changes are introduced within hotel industry
which make it essential to identify the gaps and adopt new ways of working (Grobelna and
Marciszewska, 2016). Here, managers of Novotel London need to change in their working
methodology by getting updated and recent information. There is requirement to focus on
improving soft skills as well as hotel staff need to interact with ample of guests. Operational
team of Novotel London is required to develop soft skills such as interpersonal skills,
communication, team working and more in order to run business in proper and systematic
manner.
Discuss skill gap and also give suitable solution for meeting with gap issues
It is stated that skill gap put an adverse impact over success of hospitality organization so
it is required to analyze the skill gap in an efficient manner. It is also helpful in improving
productivity and profitability of company.
For minimizing skill gap, it is required to arrange appropriate training and development
programs. In this regard, Novotel London arranges necessary training and learning programs so
that efficiency of operational team increases in significant manner. Apart from this, they also
need to assess the impact of training and development programs with appropriate mediums.

CONCLUSION
It is analyzed with above mentioned information that hospitality business is evolving
rapidly which is good from the economical prospective. This sector significantly contributes in
generating employment for betterment of country and nation. There are a lot of types of business
organizations such as hotels, motels, resorts, accommodation and more are operated within
hospitality industry. Different types of services are offered by each and every business
organization. Discussion has been carried out about functional and operational department and
their interrelationship with each other within hospitality industry. It is analyzed that licensing,
franchising are the effective ways which are used by hospitality organization for growth and
development. There are a lot of skills required to present in managers for performing different
roles and responsibilities of functional and operational department of company. Further,
appropriate strategies are prepared for meeting with skill gaps in an efficient manner.

REFRENCES
Books and Journals
Bagnaresi, D., Barbini, F.M. and Battilani, P., 2019. Organizational change in the hospitality
industry: The change drivers in a longitudinal analysis. Business History, pp.1-22.
Chathoth and et. al., 2016. Co-creation and higher order customer engagement in hospitality and
tourism services. International Journal of Contemporary Hospitality Management.
Choe, J.Y.J., Kim, J.J. and Hwang, J., 2020. The environmentally friendly role of edible insect
restaurants in the tourism industry: applying an extended theory of planned
behavior. International Journal of Contemporary Hospitality Management.
Darcy, S., 2017. Ableism and Disableism in the Tourism and Hospitality Industry: A Thematic a
Analysis. In Council for Australasian University Tourism and Hospitality Education
Annual Conference.
Dixit, S.K. ed., 2017. The Routledge handbook of consumer behaviour in hospitality and
tourism. Taylor & Francis.
Grobelna, A. and Marciszewska, B., 2016, April. Work motivation of tourism and hospitality
students: implications for human resource management. In Proceedings of the 8th
European conference on intellectual capital (pp. 95-103).
Imad, A.S., 2019, August. Remodeling hospitality industry through artificial intelligence.
In 2019 13th International Conference on Software, Knowledge, Information
Management and Applications (SKIMA) (pp. 1-7). IEEE.
Lashley, C., 2016. Introduction research on hospitality: The story so far/ways of knowing
hospitality. In The Routledge handbook of hospitality studies (pp. 17-26). Routledge.
Lashley, C., 2016. Introduction research on hospitality: The story so far/ways of knowing
hospitality. In The Routledge handbook of hospitality studies (pp. 17-26). Routledge.
Law, R., Leung, D. and Chan, I.C.C., 2019. Progression and development of information and
communication technology research in hospitality and tourism. International Journal of
Contemporary Hospitality Management.
Martínez, P. and Nishiyama, N., 2019. Enhancing customer-based brand equity through CSR in
the hospitality sector. International Journal of Hospitality & Tourism
Administration, 20(3), pp.329-353.
Munasinghe and et. al., 2018. Hospitality from a host-guest encounter perspective: A triadic
approach to understanding hospitality in tourism. CAUTHE 2018: Get Smart: Paradoxes
and Possibilities in Tourism, Hospitality and Events Education and Research, p.417.
Munasinghe, S., Hemmington, N., Schanzel, H. and Poulston, J., 2018. Hospitality from a
host-guest encounter perspective: A triadic approach to understanding hospitality in

tourism. CAUTHE 2018: Get Smart: Paradoxes and Possibilities in Tourism, Hospitality
and Events Education and Research, p.417.
Özduran, A. and Tanova, C., 2017. Manager mindsets and employee organizational citizenship
behaviours. International Journal of Contemporary Hospitality Management.
Rodríguez-Victoria and et. al., 2017. Clustering, innovation and hotel competitiveness: Evidence
from the Colombia destination. International Journal of Contemporary Hospitality
Management.
Sanjeev, G.M. and Teare, R., 2016. Reflections on the theme issue outcomes: How is the need
for innovation being addressed by the Indian hospitality industry?. Worldwide Hospitality
and Tourism Themes.
SERGIU, R. and LUCIAN, I.F., 2020. CHALLENGES OF TOURISM EDUCATION AND
CAREER DEVELOPMENT IN THE HOSPITALITY INDUSTRY. Agricultural
Management/Lucrari Stiintifice Seria I, Management Agricol, 22(1).
Torres, E.N. and Mejia, C., 2017. Asynchronous video interviews in the hospitality industry:
Considerations for virtual employee selection. International Journal of Hospitality
Management, 61, pp.4-13.