Contemporary Hospitality Industry: Business Analysis, Contribution

This report provides a comprehensive overview of the contemporary hospitality industry, focusing on various business types and their diverse products and services. It discusses the significant contributions of the hospitality sector to local, national, and international economies, highlighting its role in creating employment, generating income, and fostering foreign direct investment. The report also examines the operational and functional departments within hospitality organizations, such as Premier Inn, including housekeeping, kitchen, front office, marketing, and human resources. Furthermore, it explores franchising and licensing models, emphasizing their importance in expanding brand reach and generating revenue. The report concludes by addressing essential skills required in the hospitality industry and identifying skill gaps that need to be addressed to ensure excellent customer service and sustained growth.

THE CONTEMPORARY
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explore a number of different types of business within the hospitality industry and the diverse
products and services that they offer...........................................................................................1
Discuss the contribution of the hospitality industry to local, national and international
economies....................................................................................................................................2
M1...............................................................................................................................................3
Hospitality's departments ...........................................................................................................3
Franchising and licencing...........................................................................................................5
Skills in hospitality services........................................................................................................6
Skill gaps in hospitality industry.................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality industry is one of the largest networking sector in which the organization
delivers wide range of services to the customers. The hospitality industry serve the services to
the consumer which are related to food and beverages, lodging, recreation, travel and tourism.
The aim of the industry is to delivered exclusive services to the consumers in order to delivered
satisfaction to the buyer and generate profit in exchange. The hospitality sector includes various
hotels, resorts, bars, cafes and many more.
The present report will examine different types of business operated in hospitality industry and
what is the contribution of local, national and international in this particular sector. The study
will highlight the various functions and operation in the context of the organization Premier Inn
which is based in UK. The chosen organization is leading the market since many years after
founded in 1987the hospitality business by Whitbread. Furthermore, review the whole role-
played by hospitality industry
MAIN BODY
Explore a number of different types of business within the hospitality industry and the diverse
products and services that they offer
Hospitality industry is one of the broadest industry of the world it includes all the section
which are related to the food and drink service, lodging, theme park, event planning, travel and
tourism This also consist of tourism agencies, hotels, restaurants and bars. This industry revolves
the providing the best customer service in order to widen the variety of positions. In this sector
most of the people are encaged which are like to attain the customer and enjoy the work with
travel industry (Manoharan, Madera and Singal, 2021). There are most of the people are come at
the restaurant or hotel in order to drink, sleep, enjoy with the family and friends. The services
provided by industry is almost labour-intensive not as the technology based. Also, it has changed
because technology advancement is very important for the modern business there are so much
advancement are changed in order to provide the best service to the customer. There are
different types of services offered by the Premier inn such as follows:
Food and beverages- This is one the largest section of the hospitality industry because it
has the professionalism, there are so many people who are doing job in this sector. The job title
is depended on the class of restaurant included with short-order cook, baker, chef, head chef,
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wine specialist etc. It consists of all the element which are preparing meals, beverages and
snacks (Hossain, 2021). When the organization provides excellent services it attracts the
customer and increases the productivity of the hotel in order tos provide first-class services. It
also enhances the guest experience by providing them extra care.
Travel and tourism- It deals with all the services which are related to the moving the
people from one to another with the help of ships, planer, trains, cabs, buses etc. The quality of
services is depended on the money charges by them. There are different category of services
according to the peoples. Leisure travel services for high-class people who are spent more on the
package and get the best services related to the food, lodging, recreation etc. (Akbari and et.al,
2021).
Lodging- It refers to all the services which is related to the accommodation for specific
period of time such as day or night or hours. There are different types of services which are as
follows youth hotels, fancy hotel, camp ground, elder hotels, motels etc. Re the lodging services.
Recreation- It refers to the services which are included all the activities related to
enjoyment, relaxation and rest, The main goal of these services are related to the enjoyment and
relaxation so that consumer feels refresh (Sanabria-Díaz, Aguiar-Quintana and Araujo-Cabrera,
2021).
Discuss the contribution of the hospitality industry to local, national and international economies
It has been analysed that this sector is currently contributed more than 11% of global
GDP, it helps to increase the economic features related to tourism sector which contribute at the
high-priority goals for developing the country in order to increase the generation of income,
foreign-exchange earning, employment etc.
Contribution to Local economy-
Create employment- This is the biggest contribution that are given by hospitality
industry in order to provides job to local people who are interested ion hotel management. Also,
contribute in the direct job opportunities such as tour guide, operator, tour planner etc. In hotels,
it offers wide range of services such as restaurant, hotels, resort etc. This influence other sector
which are included with airlines, event management, cruise industry etc.
Generate income- It generates the income for local people by influence them selling the
handmade product at the good prices (Canhoto and Wei, 2021). Foreigners are like to purchase
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the local things which are made by nearby people and it can be the best option to create the
income as it influence those who are likely to invest in the hospitality sectors.
Contribution to National economy-
Develop diversification- Hospitality industry is very border and it needs resources in
large amount so it develops the diversification and influence the people by purchasing the raw
material within the nation. It increases the mining, farming and manufacturing of goods that are
help in the hotels such as furniture, food item etc.
Build infrastructure- It helps in constructing infrastructure in order to attract the
customer and spent more money on it for visiting the place. There are specialities of place in
every place. Therefore, this sector help to development of new building in order to increases the
source of income generation (Mannan and Pek, 2021).
Contribution to International economy-
Foreign exchange earning- This is the most important earning of hospitality sector, all
the cost of tourism incurred by tourist which are come from outside the nation (Huang, 2021).
This is the main source of income generation. As well as it helps to collect all the related
information about the economy. The service charge is comparatively fir the foreigners because
they ha to pay tax for it.
Foreign direct investment- The investment of the government also increases by this an
can be good sources of income as well as it found more in the economies that there are help in
excellent growth in the world. (Industries) has good amount to spent in foreign direct
investment. (MULUGETA, 2021)
M1
Operation management plays vital role in the success of the business, there are some
sectors such as staffing, which helps to contribute a lot in the organization. Premier inn hotel has
great staff in order to help the customer by providing excellent services. Also, technology
advancement helps to attract the customer in order to provide them additional services which is
related to the automation of exist and entry door (Stylos and et.al, 2021).
Hospitality's departments
The hospitality industry is basically the connection between guest and organization. The
company is having the hierarchy of top-level, middle level and lower level of management. The
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hospitality industry consist of various department in the marketplace. The departments are
bifurcated into two parts which are as follows:
operational departments
All the operational activity is considered in this department of hospitality industry. The people
who were working in the departments are well-trained and motivated by the
organization(Davahli, et.al 2020). The organization Premier inn utilized the activity in a
followed manner:
 Housekeeping- this is highly affective department of the hotel industry. The working
people of this particular department perform the duty of cleaning and maintain the beauty
of room as well as hotel. The staff of housekeeping manage the internal flowers for the
welcoming of guests. Proper hygiene is maintained by this specific department. It gives
assistance in delivering the best experience to the guest. The area cover under
housekeeping is customer room, common area, lobbies, restroom etc.
 Kitchen- this area cover all the services related to preparation of the food. The employees
of the organization prepare the delicious food for the customer. The members of
department perform the job role of chief, sous chef, cook, kitchen porter and other within
thee organization. The organization delivering the hygienic food to the customers
Njoroge, M., Anderson, W. and Mbura, O., 2019. The workers of the hotel provide full
food security and precaution to employees.
 Food and beverage: under this department workers play the job role of waiter, waiters
and bartenders. In the organisatio9n food is prepared by the kitchen and drinks is in bar.
The employees of this department serve the food to the customer as per the desire of
consumer.
 Front office: the working people of this specific sector interact with the customer in very
first manner. The complains and quarries resolved by the front officers within the
organization. The company member provide information required to the customer. The
employees of the organization welcome the guest and provide gesture to them. The staff
member give assistance in registration and allotment of room. The front officce member
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collect the feedbacks after providing service to the consumer like are touy satisfied with
the service.
Functional department
 Marketing department: It is the part of functional department. The working members of
the Premier Inn examine the taste and preferences of the customers in order to satisfy
them. The organization modifies the service according to the research accomplished by
the employees of the organization. It assists in increasing the scale of customer
satisfaction from organization (Lashley, C., 2018). The major task of this department is
to increase the sales of the business.
 Human resources department: the organization consist various task under this particular
department. The human resources of the firm hire and fire the employees of the
organization as well as provide various training ad development programme. The
manager of the firm conduct the interview of new candidate anfd provide peroper
guidance to them. This department is the most responsible department of the company.
 Accounting and finance: the organization cover all the financial work under this
department. Financial worker of the organization perform essential duty. The duty cover
cost controlling, billing with credit controlling, issues related to tax, the financial
statement perpetration, budgetary and budget control etc.
 procurement: this refers to the purchasing of good and service. The purchase manager of
the organization is responsible for the purchasing of commodities which the company is
required for the finish good or services. It includes the buying of raw material, and
instrument in low price.

Franchising and licencing
Franchising play vital role in the hospitality industry. In a franchising the organization give
rights to the franchisor to offer the services and commodity of organization to the consumer in
exchange for money. Borth the parties make agreement before giving and taking the franchisee
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of the organization (Mehmood, M., 2020.). The agreement cover term and conditions as per the
parties. Licencing the effective idea to generate profit for the organization. It gives assistance in
increasing the brand value in different market sector. It increases the network of organizational
as well as generate new customer. The organization hand over the label, logo, brand value to the
third party. The organization provide loyalist programme to the customer in order to generate
profit and deliver loyalty to the customer. The organization need to invest less money as
compare to the creation of new property. The standard of the company is maintained by the
other party or the franchisor.
Skills in hospitality services
The adequate skills and knowledge is very important in the organization. It assists in
maintaining the relationship with the customers as well as increase the brand-value in the
marketplace. With the good skills the organization able to satisfy the taste and preference of the
consumer. There are various skills which is important in the hotel or hospitality industry as
follows:
1. communicational skill: this skill includes active listing, speaking and include body
language too. It gives assistance in understanding the things in clear and adequate
manner. The absence of communication lead to the miscommunication with in the
organization. The skill of communication is important in hotel industry because the
worker are suppose to deal with the consumer. The customer of the organization belongs
to differently cast, religion, background and geographical area. The employees of the
organization represent the firm in front of consumer so it is important to explain and
understanding each and everything in clear as well appropriate manner. The good
communication of the employees encourage others.
2. Customer service skills: in the hospitality industry the organizational people deal with
consumer on regular basis (Mehmood, M., 2020.). So the customer expected to have
better service which require good customer services The employees or the worker need
to provide hard and fast services to the consumer. worker of the organization have proper
skills to deliver the positive and healthy environment in order to satisfy the buyers.
Though this skill the working people of company make journey better for the visitors and
guests.
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3. Multitasking skills: the employees of the organization take multiple challenges and
always ready to perform another role in difficulty. The employees perform various duties
for the satisfaction of the customer and make experience better. The worker performs
different tasks at the same period. The organizational member of the firm handle the hard
and fast service in a very effective and clear manner. The assets of the organization do
not pressurize when work load is high. Every individual keep personnel problem apart
from the professional. This will deliver good impression in the marketplace.
4. Relationship skills: it is very important to have relationship skills in individual person.
Due to this skill the organization maintain good relation with the consumer for long
period. The skills involve the ability to make friends and deliver service to the costumer
It will enhance the reputation of the business in the marketplace. The customer visit
again in the hotel because of well behaviour of staff members. It will develop the feeling
of loyalty among the consumers. It delivers customer satisfaction and increase
productivity of organization.
5. Cultural skills: the more employees of the organization aware of the culture the more
able to deliver hospitality service better. It is very important to being aware of the culture
in order to maintain good relationship with the buyers. This includes the attitude and
behaviour of every individual person who are working within the organization. The
employees of the company coordinate and cooperated with the other workers who belong
to different region, cast, geographical area. With the adequate skills of culture the
working person of the organization are able to deliver healthy environment within the
firm.
Skill gaps in hospitality industry
Nowadays hospitality industry is facing the issue of skills shortage in the country. The industry
required expert, semi-skilled, and unskilful worker because everyone is engaging in eating in
the hotel or ordered from restaurants (Walker, J.R., 2017). The industry has high shortage of
chefs, waiters/waitresses, cooks and many more. Due to lack of worker the industry is having
high vacancy. The issue is arises because of low payment, high working hours, anti-social
working hours. For the improvement of this skill gap the industry provide training and
development programmes to those individuals who willing to work. The sector hires the
youngster who can work in anti-social working hours and deliver good salaries to them in
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exchange off services. The industry offer flexible working effective and efficient workflow to
the new comers in the organization.
The organization expecting to enter into new Asian market which is India, before entering into
the mark wet the organization need to examine the financial state of the country. The
organization analysis what language the people of nation specking and what is the tradition of
India. The organization analysis the value of the currency and market segment of the country.
Furthermore, the organization identify what the customer off India willing to Take in dinner,
lunch and breakfast in order to fulfil the demand and preference of the buyers. The skills are
very important to determine before implementing or converting plans into action. The people of
India speech multiple languages but common language is English. Along with language the
Indians follow multiple cultures like Rajasthan people speck Rajasthan, Gujarat people speech
Gujarati etc.
CONCLUSION
from the above report it will be concluded that the hospitality industry have wide range of
service and businesses in the marketplace. The industry have direct connection with the
employees of the organization. The organization members maintain healthy relationship with the
consumer which give assistance in increasing the business rapidly. The organization PREMIER
INN cover huge market and expecting to expand into Asian country. The study identified the
contribution of the hospitality industry in global and international market which is exteriorly
high.
The hospitality provide employments to the people who willing to work and earn money. The
people of hospitality industry maintain standard of the organization by offering great service.
The organization or hotel have various department who perform different duties. The members
of the firm utilized the relevant and creative skills within the organization to achieve goal of
organization.
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REFERENCES
Books and Journals
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brand loyalty, hotel positioning and intention to revisit?. Current Issues in Tourism.
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Canhoto, A.I. and Wei, L., 2021. Stakeholders of the world, unite!: Hospitality in the time of
COVID-19. International Journal of Hospitality Management. 95. p.102922.
Davahli, et.al 2020. The hospitality industry in the face of the COVID-19 pandemic: Current
topics and research methods. International Journal of Environmental Research and Public
Health, 17(20), p.7366.
Hossain, M., 2021. The effect of the Covid-19 on sharing economy activities. Journal of Cleaner
Production. 280. p.124782.
Huang, K.J., 2021. The Role of Logistics Service Quality in Achieving Customer Satisfaction
and Loyalty in the End-Consumer Market Using the Example of the German
Motorcycle Industry (Doctoral dissertation, Munich Business School).
Lashley, C., 2018. Hospitality Management. The SAGE Handbook of Tourism Management:
Applications of Theories And Concepts to Tourism, p.328.
Mannan, M. and Pek, S., 2021. Solidarity in the sharing economy: The role of platform
cooperatives at the base of the pyramid. In Sharing Economy at the Base of the Pyramid
(pp. 249-279). Springer, Singapore.
Manoharan, A., Madera, J.M. and Singal, M., 2021. Walking the talk in diversity management:
Exploring links between strategic statements, management practices, and external
recognition. International Journal of Hospitality Management. 94. p.102864.
Mehmood, M., 2020. Finance in the Hospitality Industry. In Contemporary Management
Approaches to the Global Hospitality and Tourism Industry (pp. 185-212). IGI Global.
MULUGETA, E., 2021. WASTE MINIMIZATION THROUGH QUALITY IMPROVEMENT
TOOLS (THE CASE OF BERHANENA SELAM PRINTING ENTERPRISE)
(Doctoral dissertation, ST. MARY’S UNIVERSITY).
Njoroge, M., Anderson, W. and Mbura, O., 2019. Innovation strategy and economic
sustainability in the hospitality industry. The Bottom Line.
Okumus, F., 2020. Leadership research in hospitality and tourism. Management, 32(6), pp.2029-
2034.
Sanabria-Díaz, J.M., Aguiar-Quintana, T. and Araujo-Cabrera, Y., 2021. Public strategies to
rescue the hospitality industry following the impact of COVID-19: A case study of the
European Union. International Journal of Hospitality Management.
Stylos, N. and et.al, 2021. Beyond smart systems adoption: Enabling diffusion and assimilation
of smartness in hospitality. International Journal of Hospitality Management. 98.
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Walker, J.R., 2017. Exploring the Hospitality Industry, 2/e. Pearson Education India.
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