Hospitality Industry: Operational and Economic Analysis Report

This report provides a detailed analysis of the hospitality industry, focusing on various aspects such as different types of businesses (travel and tourism, lodging, restaurants, pubs/clubs/bars, memberships and events), operational departments (front house and back house), and their respective functions. The report examines the contribution of the hospitality industry to local, national, and international economies, highlighting the roles of franchising and licensing in global growth. Furthermore, it delves into different operational roles within the industry, including housekeeping and sales and marketing. The analysis also includes PESTEL and SWOT analyses, as well as an investigation of current and potential trends, providing a comprehensive overview of the industry's dynamics. The report uses Shangri-La Hotels and Resorts as a case study to illustrate the concepts discussed. Finally, it discusses the interrelationships between operational and functional units, and how they contribute to customer satisfaction and overall business success.

Understanding
Hospitality Industry

Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Different kinds of business in the hospitality industry along with the types of products or services
they have to offer.....................................................................................................................................3
P2 Examination of a range of operational and functional departments within hospitality organization...4
P3 The contribution of the hospitality industry to local, national and international economies...............5
TASK 2.......................................................................................................................................................6
P4. Investigation about the range of various operational roles in the hospitality industry.......................6
P5 Skills which are required for roles in this particular industry along with the current shortages for
skills........................................................................................................................................................6
TASK 3.......................................................................................................................................................7
PESTEL analyses....................................................................................................................................7
P7 SWOT Analysis..................................................................................................................................8
TASK 4.......................................................................................................................................................9
P8 The implication of current and potential trends in the hospitality industry.........................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11

INTRODUCTION
Hospitality industry is driving and quickest developing modern section in which
exercises that are related to boarding, dwelling, eatery, convenience touring, entertainment, club,
transportation and so forth are incorporated. By offering these administrations and offices
working their administrations in this area predominantly point towards giving colossal
fulfillment to customers. There are number of association in hospitality area adopt utilization of
shopper focused strategy through which they offer excellent types of assistance and offices to
clients to guarantee your drawn out supportability in separate area. These association lead their
tasks with having and expect to upgrade fulfillment level of purchasers augment generally
productivity age estimation of element.
Present report has been made on Shangri La hotels and resorts; this organization leads
their tasks and hospitality area and was established in the year 1971. With having more than
hundred's of lavish offices element offered their types of assistance around the world. Present
report remembers conversation for various sorts of organizations inside hospitality area
alongside various type of operational and utilitarian division that are winning in association.
Alongside this neighborhood public and worldwide financial matters commitment is additionally
remembered for this report with various operational jobs, SWOT and pestle examination of
individual association in hospitality mechanical area.
TASK 1
P1 Different kinds of business in the hospitality industry along with the types of products or
services they have to offer
Hospitality is one of the main and developing area that incorporate distinctive kind of
exercises and organizations the individuals who play out their business tasks with a thought
process to upgrade purchaser fulfillment level to produce more beneficial pay and income.
Association engaged with this area offer solace to buyers by giving them offices administrations
and items. Hospitality industry area incorporate distinctive sort of organizations the individuals
who are directing their business tasks:
Travel and tourism:
It is one of the most basic specialty units working their administrations in hospitality section in
which administrations relating to travel and calculation offices to customer is being attempted.
Further it has been distinguished that street, train, flight, transport are a portion of the voyaging
mode through which offices and administrations are being offered to clients. This is one of the
principle specialty unit inside movement and the travel industry is one of the main business that
have significant commitment in United Kingdom economy that also offer excellent
administrations to clients as per their need and demand.
Lodging:

This business of hospitality area exercises related to lodging, breakfast, inns and so on
Administrations that are being remembered for housing are primarily wins for brief timeframe as
to offer purchaser fulfillment as per their necessities. In this administrations that buyer ask when
they remain in association premises are being incorporated. This has been recognized that most
significant worry of housing business is to deal with wellbeing and security of shoppers, workers
and people. Along these lines, this causes Shangri La to ensure that they to have secure and
agreeable climate for their visitor, as it will permit them to upgrade shopper fulfillment level
towards substances administrations and offices.
Restaurant:
In this specialty unit offices related to food and drink is being given to clients. This specialty unit
is additionally one of the proficient portions of hospitality industry in which purchasers are
furnished with wide scope of diners, cheap food, brisk assistance, café offices. In setting with
Shangri it is fundamental for inn to offer best cooking food offices to their shoppers to guarantee
more serious headway.
Pubs / clubs / bars:
This unit inside hospitality area predominantly gives clients the administrations that are related
to their relaxation and solace. Bar, club and bars give amusement offices to shoppers the
individuals who looks for towards investing their energy with pear associates and family. It is
basic for Shangri La to center upon this business in their lodging and resorts, as through this they
can fulfill clients successfully by relaxing down their concerns and stress. Inside this substance
by offering mitigating lightning offices, wine and mixed drinks can stand out of clients in a huge
way.
Memberships and event:
Presently a day's clients primarily look for towards having their wedding, meeting, and
gatherings and so on in an agreeable and fair feel. For this they seeks towards this unit inside
hospitality area which is participating in the administrations of giving music shows, diversion,
occasions, feast and wedding offices to clients. In wording with Shangri La this is fundamental
for substance to upgrade adequacy of this unit and offer great types of assistance to purchasers
with moderate value range to hold them for significant stretch of time, as it will permit element
to improve their piece of the pie holding alongside benefit.
P2 Examination of a range of operational and functional departments within hospitality
organization
Shangri La lead their business tasks with having two diverse type of specialty unit that
are front house and back house with wide scope of a capacities. This office directs their offices to
offer elevated level of fulfillment to their clients with a mean to upgrade generally benefit and
efficiency of substance in hospitality modern area. These units mostly participate in the activities

of leading their regular schedule administrations to offer back house and front house benefits
viably:
Front house:
Inside this unit exercises and activities related to front house housekeeping, reservation in
Shangri La lodging and café is incorporated. It has been distinguished that workers the
individuals who play out their capacity inside this are having direct protection with customer or
buyers. Hence, this creates this unit of the most significant and basic function wherein element
can is needed to guarantee greatest degree of shopper fulfillment. To build productivity of front
house Shangri La exploit solid correspondence expertise through which workers give exceptional
experience to customers. It has been assessed that practical portions, for example, deals and
promoting are likewise associated with this area. Alongside this Shangri La food and drink unit
is additionally remembered for this as they offer the administrations related to cafés hold up,
banqueting, gatherings bar to shoppers.
Back house:
This unit inside an association incorporates activities related to HRM designing and
bookkeeping. In wording with HRM unit they direct activities related to employing, enrolling,
giving preparing and advancement courses to representatives. Alongside this HR leader are
additionally have most significant part to ensure that food and drink unit is directing their
activities as indicated by set standards and rules. Anyway designing division inside Shangri La
successfully leads their duties to keep up infrastructural viewpoints inside organization to keep
up ground upkeep productivity. In the event that it is discussion about bookkeeping division the
lead the part of upgrading organization income age abilities by exploiting distinctive monetary
sources.
P3 The contribution of the hospitality industry to local, national and international economies
As per the assessment it has been distinguished that hospitality is one of the quickest
developing area that offer wide scope of business open doors for people in neighborhood and
public scale. Because of their critical commitment this industry encourages public and
neighborhood economy fundamentally. This industry is one of the fifth largest modern areas of
United Kingdom that properly offer business occasion to around 2.4 million individuals.
Alongside this, it has been distinguished that this industry likewise created most extreme income
is equal to £90 billion. This industry is working there administrations with promoted
globalization pattern that improves worldwide economy at incredible degree. Notwithstanding
this authorizing and diversifying likewise make this industry one of the most elevated
contributing mechanical sections in public, neighborhood and global financial aspects around the
globe.

A review of interrelationships between operational and functional units
The operational units are responsible to perform the major work in an organisation. Like
as in the case with Shangri La hotel the operational department can be the housekeeping
department, kitchen department, floor supervisors, service units, laundry and the so on. These
departments are concern with the activities which can help in bringing the customer satisfaction
or experience upper and higher. Whereas the functional department is the department which
includes marketing department, human resource department, finance department and the so on.
The functional and operational department goes hand in hand. The operations or work in
operational department goes in the way which has been promised by the Hotel to the customers
in his marketing activities, i.e. in the marketing activities the Hotel promised the services like
good food, laundry, customer satisfaction and the operational department truly tries its best to
fulfill it.
The use of franchising and licensing has given a global development
Both franchising and the licensing are the method through which an organisation or any
business can take an entry to some other region. It is consider a mode of entry by the
organizations. As in the case with Hotel Shangri La, through the franchising and licensing of
their hotel they have successful able to establish themselves at the various countries and regions.
This has unable them to make them international business and operate in the international
countries or places. Apart from this establish of them in the country has also brought the
development in that region also as the high class services and hotel has been establish their for
the people. This also has brought the development in that particular host country or region.
Therefore these two entry mode i.e. franchising and licensing has contributed to the development
of the globe.
Global growth, franchising and licensing developments contribution in the economic worth
When any business or organisation gets enter to a different region or country for work, it
will develop the infrastructure there, bring the latest technology to that country, hire the
employees, and provide the good products or services to the customers and much more. As in the
case with Hotel Shangri La, they expand themselves through the use of franchising and licensing
entry mode. By putting their investment in the other region, they build the infrastructure at that
place, they hires the employees of that country or region who can work for them, they provide
the good services to the customer unable to provide them the high standard and lavish services
and lifestyles, generate income in the region through employment which will increase the
disposable income of the people and also provides them the better lifestyle to live. All these
factors comprehensively contributes to the economic wroth.

TASK 2
P4. Investigation about the range of various operational roles in the hospitality industry
Hospitality area incorporates wide scope of operational jobs that point towards giving
most extreme fulfillment to clients. With their administrations and offices substances leading
their business exercises have one of the main points which are to improve buyer base. For this
they lead distinctive sort of operational functions to satisfy shopper need and demand likewise.
Referenced beneath certain type of operational parts in Shangri La is being characterized:
Housekeeping:
It is one of the main operational jobs that participate in the tasks of keeping up hierarchical
locales just as environmental factors to offer doable agreeable, clean climate and air to clients.
By leading this job Shangri La point towards upgrading customer dependability towards
association, as substance viably give captivating offices like spa, feast lobby, wellness care
offices as indicated by shoppers necessity with of high caliber.
Sales and Marketing:
This is one of the basic organizations inside hospitality area as this job which is needed to
oversee by and large deals proportion of element is incorporated. In setting with Shangri La it is
fundamental for supervisor to exploit alluring advertising plans program and methodologies to
improve organization piece of the pie holding. Showcasing and deals division in Shangri La
likewise take utilization of limited time procedures and instruments to expand organization deals
adequately.
Front desk facilities:
Front work area offices job is a significant operational part wherein basic administrations are
being given to clients. As it as it has been distinguished that front work area leader and
representatives have direct association with shoppers, accordingly they have the main duty to
keep up certain cooperation’s with buyers by understanding their social lead. As achieve this job
adequately Shangri La exploits proficient correspondence procedure to upgrade purchaser
fulfillment.
P5 Skills which are required for roles in this particular industry along with the current shortages
for skills
There are different abilities which a worker is have to have when working in hospitality
enterprises, some of them are as per the following:
Collaboration: The cooperation is a lot of basic at all level or sort of work. The staff individuals
need to organize among themselves with the goal that they can accomplish their expressed
objectives. For dealing with the group a correct conduct and mentality is must. The colleagues

ought to be able to tune in to other colleague and additionally regard to what other individual
needs to state about a point.
Multi tasking: The representative should have the option to play out the various undertakings all
at once. As the fundamental thought process to hospitality business is to fulfill the visitors so the
worker should have the option to address the issues of different visitors. Each visitor present
there can have distinctive issue or quires and it is the simple obligation of the staff part to
comprehend the issue regardless of the division they have a place.
Meticulousness: The staff individuals from the hospitality business should focus on everything
about what client had the chance to state or demand. The demands of the clients are of various
sort and it is the obligation of the worker to fulfill that need in the specific a similar manner
which the client has requested.
There are additionally numerous abilities which are still consider as a deficiency, some of them
are as per the following:
Relational abilities: There are as yet many staff individuals or the workers which don't have the
best possible relational abilities. In hospitality enterprises staff or the representatives are the
individuals who straightforwardly collaborate with visitors. To make the visitor fill well the
correspondence of the workers should be each much gracious and great.
Lack of interest: the representatives in hospitality ventures don't have interest in the field in
which they are seeking after their work. The interest they have diminished which has leaded
them in a non roused representative. It has been said that the non roused worker doesn't
contribute great into his work. He plays out his work in the purpose of doing it.
Appropriate degree: The representatives which has been employed by the hospitality business
doesn't have legitimate level of hospitality administrations or course which can give appropriate
instruction about jobs, obligation, demeanor and conduct they needs to convey in this work.
Skill gaps in relation to different operational roles
There are various operational roles in a hotel. Some of them may include housekeeping
work, laundry work, front desk work, supervisor work and much more. And to fulfill these
services a set of skills are required. The gap in skill can be easily found in the employees or staff
of hospitality industry. Some of the gap may include, the gap in proper communication, in the
hospitality industry the smooth and polite communication is a must. There are some members
who lack in the proper communication. There is very little percentage of people who pursue for
the degree of hospitality industry and the growth of the employees in such industry is also low
this may create the shortage of proper educated employees in the hotel. Some other gaps may
include management skills, supervisory skills, guest problem handling skills and much more.

The impact which skills gaps have on hospitality businesses along with the valid solutions for
addressing these skills
The lack of skills directly impacts the customer experience or satisfaction level because
the operational units are the actual people who deliver the service and represents the Hotel. To
bridge this gap various solutions can be adopt. These solutions may include providing the proper
training and development programs to the employees and staff members, giving them the proper
growth opportunity so that they retain in the organisation, proper remuneration, good culture and
so on. Through the adoption of these the practices the skills gap can get reduced to some extent.
TASK 3
PESTEL analyses
The PESTEL analysis is as follows:
Political: This factor incorporates the guidelines and regulations which are shaped by the public
authority of that nation. This may incorporate unfamiliar exchange arrangements, defilements,
government strategy, charge strategy and the so on. The inn network of Shangri la inn is set up in
the nations where the public authority is steady. This causes the security in the guidelines and
regulations which are shaped by the public authority (Iyer and Jarvis, 2019). And when the
guidelines and regulations are steady, the organization would more be able to put center around
the other operational points.
Economic: This factor empowers the specialist in breaking down the financial condition and
circumstance of a nation. A portion of the factor incorporates discretionary cashflow, GDP,
business rates, trade rates and so on. The Hotel Shangri La offers the lavish types of assistance to
its clients so it attempts to set up itself at the places or the locale where the clients have managed
the cost of these rich administrations.
Social: This factor incorporates the taste, conduct, mentality, point of view, way of life and so on
of the focused on market. Through this the organization becomes acquainted with about the
viewpoint of the focused on market upon a particular theme. The Hotel Shangri La offers all the
types of assistance which are as indicated by the pattern and wants of the clients. The inn plays
out some statistical surveying in which they break down the current and late patterns which are
running into the market and roll out the improvements in like manner.
Technological: The innovation utilized into the association carries slip into the tasks and
exercises. The lodging Shangri la has embraced the innovation which bolsters the economical
turn of events and decrease in the discharge of carbon. Aside from this the inn additionally
receives the data innovation framework where it into the framework it can stores, spares and
offer all the information and data which about the exercises and activities of business (Koseoglu,
Law and Dogan, 2018).

Environmental: The natural components incorporate the ecological related laws shaped by the
public authority and climate dissenters. The Hotel Shangri la has contributed a lot in natural
related issues through changing its operational exercises into practical exercises. The supportable
exercises are the eco amicable exercises which produce less damage to the climate.
Legal: In this factor each one of those standards and lawful laws are available which is shaped
by the legislatives. The association in the event that they need to work into the market needs to
keep these principles. The Hotel Shangri la observes all the lawful laws which are expressed by
the legislations. This has caused an expansion in trust of government just as of the clients
moreover.
P7 SWOT Analysis
SWOT examinations are inner investigations in which the association dissect the inside
assets and characteristics. SWOT for hotel can be as:
Strengths suggests the characteristics which an association has. Every one of these
characteristics separate the association from different organizations and help them in picking up
the upper hand (McCartney and McCartney, 2020).
Weakness is where the association lack behind and need a few upgrades.
Opportunities are the fields which the association can investigate for its development and
benefits.
Threats allude to the variables which makes chances the organization.
The SWOT examinations of Hotel Shangri La are as per the following:
Strengths:
 The administrations which are given by
the organization are sumptuous and
loved by the clients.
 The organization has a solid client base
and brand picture.
 The inn likewise has brand mindfulness
which benefits the association
definitely.
 The association additionally attempts to
think of new and imaginative
administrations which help the inn in
marinating their clients (Prud’homme
and Raymond, 2016).
Weakness:
 The innovation utilized by the
organization doesn't get update with
time.
 The representatives which are recruited
by the inn are not expert and doesn't
have the adept aptitudes are playing out
their work.
 The inn likewise doesn't have
appropriate monetary administration
which made a piece misfortune the inn.
Opportunities:
 The organization can go for
development of their business by
venturing the foot in the territory where
Threats:
 The lodging has the danger from the
political difference in principles and
regulation

they have not build up themselves.
 The Hotel can likewise go for
consolidation with different
organizations and can fire up another
venture in any new field. This
broadening will be a lot of supportive
for the business in keeping up their
business.
 The contenders of the inn likewise play
as a danger to the organization
additionally the expansion in the
quantity of passages into the business is
making a weight upon them.
 Threat is likewise made through any
vacillation in cost or rates.
The impact of external factors on the development of organizations operations
Through the proper analyses of external factor any organisation forms its operational
activities. For example after the covid-19 the Hotel Shangri La will execute the safety measures
like use of sanitization, masks, more cleanliness in the hotel, regular checking of temperature of
employees and staff, COVID-19 check of guests before bringing them in the hotel and so on.
Due to this external factor of COVID-19 the internal operational activities of the hotel has got
impacted.
External factors impact on current trends and development
The external department puts the major impact upon the trends and development. It
changes the organisation activities and practices. As in the case with Hotel Shangri La, they have
to mould their prices for their services according to the tax they need to provide to the
government. For example, the recent increase in the tax rates upon hotel industry has forced the
hotels including Shangri La to increase their prices for services as they need to also take care of
profit margin. This change comes under the political factor where through the changes in rules
and regulations formed by government the organisation gets impacted.
TASK 4
P8 The implication of current and potential trends in the hospitality industry
Neighborhood experience: There is an ongoing pattern into the hospitality business wherein the
lodging are giving experience of nearby networks to their visitors. In which they give an
encounter of culture, dance, food, qualities, propensities and the like to their visitors. The visitors
get cheerful and hypnotized by encountering this distinctive culture and like to visit a similar
lodging network each time when they choose travel (Tews and Stafford, 2020).
24*7 Customer administrations: The inn ventures now a days has run a pattern in which they
give 24*7 help to their clients in which the clients can request any inquiries and demand to the
inn individuals. This has empowered the clients to contact the lodging at whatever point and any
place they need.

Sustainability Development and the travel industry: The supportability improvement and the
travel industry is an idea which is vogue into the market. The lodging organizations are presently
transforming their exercises into a maintainable action which makes less or no damage the
climate. In this the inn receives the exercises which are eco cordial and will likewise lessen the
carbon outflow into the climate. While manageable the travel industry alludes to an action where
the visitors or the voyagers are urged to utilize the public vehicle or the administration’s (Yang,
Henthorne and George, 2020).
The ability of a specific hospitality business to develop products and services to meet the current
trends
As in the case with hotel Shangri La hotel, they regularly conduct the market research in
which they analyses the current trends which is running in the market place. They also analyze
about the current taste and preferences of the customers so that they can satisfies them in a better
way. The hotel has the ability to develop the services so that they can meet the current trends.
They are digitally active, the regularly interacts with the customers, they frequently organize the
promotional events of the public to build the relation with them stronger.
CONCLUSION
From the report talk about over, the different sorts of business in hospitality industry are
referenced some of them incorporates hotels, cafés, spas. Housing and so on There are distinctive
utilitarian and operational exercises in Hotel which incorporates front work area, housekeeping,
deals and advertising and so forth The report likewise has additionally done the pestel and
SWOT investigations of the inn in which both the full scale and miniature climate has get broke
down. There are likewise different patterns are running into the above expressed ventures some
of them incorporates 24 * 7 client administrations, nearby experience, manageability
advancement and the travel industry and the like.

REFERENCES
Books and Journals
Koseoglu, M. A., Law, R. and Dogan, I .C., 2018. Exploring the social structure of strategic
management research with a hospitality industry focus. International Journal of
Contemporary Hospitality Management.
McCartney, G. and McCartney, A., 2020. Rise of the machines: towards a conceptual service-
robot research framework for the hospitality and tourism industry.International Journal
of Contemporary Hospitality Management.
Prud’homme, B. and Raymond, L., 2016. Implementation of sustainable development practices
in the hospitality industry.International Journal of Contemporary Hospitality
Management.
Tews, M. J. and Stafford, K., 2020. Tattoos and unfavorable treatment among employees in the
hospitality industry.International Journal of Contemporary Hospitality Management.
Yang, L., Henthorne, T .L. and George, B., 2020. Artificial intelligence and robotics technology
in the hospitality industry: Current applications and future trends. In Digital
transformation in business and society (pp. 211-228). Palgrave Macmillan, Cham.
Yousaf, S., and et., 2019. Occupational stress and its outcomes: the role of work-social support
in the hospitality industry. Personnel Review.