Contemporary Hospitality Industry Analysis and Development

This report provides a comprehensive analysis of the contemporary hospitality industry. It begins by defining the industry and its various business types, including accommodation, food and beverage, and travel and tourism. The report then delves into the operational and functional departments within an organization, using The Savoy hotel as a case study, and explores their interrelationships. It examines the contribution of the hospitality industry to local, national, and international economies, as well as the impact of licensing and franchising agreements on global development. Furthermore, the report assesses how global growth, franchising, and licensing have contributed to the economy of the hospitality industry. It outlines different operational roles, the skills required, and addresses the current skill gaps, their impact, and potential solutions within the industry. The report concludes with a summary of key findings and references relevant sources.

Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION..........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explain different types of business in hospitality industry with the products and services that
they offer................................................................................................................................1
Different operational and functional department in the organisation.....................................2
Contribution of hospitality industry to local, national and international economies.............3
Interrelationships of operational and functional units............................................................3
How licensing and franchising agreements has influenced global development of hospitality
industry...................................................................................................................................4
Assess how global growth, franchising and licensing developments have contributed to the
economy of the hospitality industry.......................................................................................4
Different operational roles......................................................................................................5
Skills required for roles in hospitality industry and shortage of skills in current time..........6
Review the skills gap with the different operational roles.....................................................6
Impact of skill gaps on hospitality industry and mention their solutions...............................6
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................8
Books and Journals.................................................................................................................8

INTRODUCTION
Hospitality means to welcome people and to satisfy the needs of the consumers who have
come up to take the services. On the other hand, hospitality industry includes various type of
business and in every business there includes the services which are provided to the people.
There are various sectors of hospitality which includes the hotels, tourism, event, resort and
many more. But in total the hospitality industry is divided in three areas which include the
accommodations, food and beverage and travel and tourism(Chandran and Bhattacharya, 2019).
The environment of the hospitality industry is welcoming and friendly and they offer to the
people different types of amenities and people usually invest their money in the hospitality sector
because they want to do relax and enjoy the time. The Savoy is located on River Thames and
which is considered to be the luxurious hotel situated in the City of London. This report will
cover different types of business in hospitality, operational and functional departments,
contribution of hospitality industry, interrelationship of operational and functional, franchising
and licensing agreements, different operational roles, skills required for roles, reviewing and
analysing the impact of skills.
MAIN BODY
Explain different types of business in hospitality industry with the products and services that they
offer
There are different types of businesses in hospitality sector which has been discussed below-
 Accommodation- Accommodation means the where the person can relax for some time
which includes the room, lodges hat helps in providing the shield or shelter to the people.
The main important thing is that people when travel requires the place to sleep and relax
for some time and that is the accommodation(Kirillova, Fu and Kucukusta, 2020). The
service which is offered in accommodation is the Lodge, resorts and suites and many
more.
 Food and beverage- Food and beverage means the presentation of food according to the
requirements and needs of the people. While travelling at some place people also requires
the food which can satisfy their hunger. The services which are included under food and
beverage is the restaurants, takeaways, fast food chains and many more.
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 Travel and tourism- The travel and tourism is the largest sector which is further divided
into many things and the main focus of this sector is to provide the products and services
according to the desires of people(Liu and Hu, 2021). The main sector which helps to
generate the revenue for the economy as well but to the pandemic the travel and tourism
has been affected a lot. The services and products offered by the travel and tourism is the
hotels, travel agencies, tourist guide services and many more.
Different operational and functional department in the organisation
The operational and functional department of The Savoy hotel has been explained below-
Operational department-
 Housekeeping department- Housekeeping department is the important department as
helps in keeping the standards of the hotel high. The Savoy housekeeping department
keeps the area of the hotel clean because clean surface attracts the guest and no person
would like to come in that hotel which is not clean.
 Food production department- Food production department of The Savoy produces
different cuisines food which is liked by the guests. The main duty of the food production
department is to produce the food and they also ensure that the quality and the taste of the
food meets the standards.
Functional department- Marketing department- Marketing department of The Savoy works for the promotion
of the hotel and to do the branding of the hotel. By conducting the research in the market
the marketing department of the hotel satisfies the needs of the people. They conduct the
activities which are in demand in the market and which are also required by the people.
 Accounting and finance department- Accounting and finance department of The Savoy
works in conducting the activity of budgeting the activities which is required to be
conducted for the activities of hotel(Erköse, 2020). They also prepares the financial
statements at the end of the year which signifies the profits and losses which the hotel has
earned during one year.
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Contribution of hospitality industry to local, national and international economies
Hospitality industry is that industry which provides different types of services to people
and these services basically includes the accommodation, travel and tourism and many more. But
the other benefit which the hospitality industry provides is to the local, national and international
economies. The local economy of the country has been benefited with many things as the
hospitality industry which includes the lodges which are there in the local community also helps
in generating the revenue and also helps in providing the employment(Orlowski, Bufquin and
Nalley, 2021). The national economy which The Savoy hotel come in provides different types of
services which are required by the people. This is because at present time people just not only
wants the food and accommodation but they want other services also which include the different
activities, pubs and the area to play games and many other. In any country when the hospitality
industry is going above with the changes in accordance with the market requirements then at that
time the tourism also increases and tourism is the highest revenue generation industry in the UK.
For the international economies the GDP growth of the country also increases and the number of
country among other different countries comes on the highest rank. This is the reason because of
which the country gains other benefits as compared with the other countries.
Interrelationships of operational and functional units
Operational and functional department in the hotel are interrelated with another which have
been discussed below in context with The Savoy-
 Human Resource (HR) department with Food and beverage (F&B) department- HR
department of The Savoy and the F&B department have the initial contact with one
another. This is because the HR department of the hotel scrutinise the best people who
are best in making the food(Bergel and Brock, 2019). Not just this, they also ask for F&B
department to deliver the application forms and provide the information of the other
personnel of different department of the hotel.
 Purchase department and housekeeping department- The purchase and housekeeping
department of The Savoy are interrelated with one another as the housekeeping
department work is to clean the area of the hotel which includes the rooms, entry gates
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and other area. The housekeeping requires the linen and other things which are used for
cleaning and to cover the bed with new sheets and for this they have to contact with the
purchase department. The purchase department of the hotel purchases the things which
are required by them and keep the things in stock always.
How licensing and franchising agreements has influenced global development of hospitality
industry
Licensing refers to the agreement which is between the licensor and the licensee and in this
the licensor gives or allows the licensor to take some right of their intellectual property which
might include trademark, patent rights or other thing. While the Franchising agreement is similar
with that of the licensing but the main difference is that the franchisor gives the right to the
franchisee to open the branch in which the franchisor is operating its business(Berno and Fusté-
Forné, 2020). These two agreements are helpful for the global development of the hospitality
industry is that the assets which are required for making the expansion of the business gets
reduced. This is because the goodwill of the existing business gets attached with the business
which is operating under its name.
For example- If The Savoy hotel wants to expand the hotel business in another country
then they can do so by choosing the licensing or franchising agreement as this will help the
business to build the goodwill with less cost and with less time. This is the most preferable way
by which the business can expand its operations in other country. The hotel when take the name
of the other established hotel then they would get the benefit which the other hotel is taking. But
the only thing is that they have to provide the services according to that hotel (Guchait and et. al.,
2019). Thus, in this way the global development of not just hotel but other sectors of the
hospitality can be developed and this will help in global development.
Assess how global growth, franchising and licensing developments have contributed to the
economy of the hospitality industry
Economy means that how the hospitality industry will be developed when they will expand
the business and will achieve the global growth which will be done through franchising and
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licensing agreements. The franchising and licensing agreements and the global growth have
helped the hospitality industry to grow their business in the following ways. When the business
wants to make expansion then at that point of time franchising and licensing increases the speed
of growth for the business. As the business is already established in particular country and with
the help of these agreements the business can access to new markets and if any problem arises
then they can take the help of existing business(Liu and Mattila, 2019). Licensing and
franchising also reduces the cost of the business in doing marketing as the license which they
take form any other business or consist the business in franchising way then the established
business in the country has already made its name. For example- The Savoy hotel wants to make
the expansion of its hotel in another country then they can take the help of any agreement and
they will get the name of the existing business of that country. In this way, the cost of making
entry will be less and the other partner will be having the knowledge of the existing market by
which The Savoy hotel can provide the services in the market accordingly.
Different operational roles
Operational role means getting the full time job in the hospitality industry which includes the
activity of doing supervision, marketing, chef, housekeeper and may more which is according to
the requirement of the sector. The Savoy Hotel also has different operational roles which
includes-
 Concierge- It includes the person which interacts with the guests directly and helps them
in getting the services. The concierge are the one which must have good consumer
service skills. For example- Front desk supervisor, Hotel clerk and etc.
 Event planer- The hotel is not just for making people stay but it also organises different
events which has to be arranged by specific people only. For example- event manager,
meeting coordinator and etc.
 Executive chef- The executive chef are the one who are responsible in food planning and
to check the food operations in those areas of the hotel that serves the food(Shin, Perdue
and Kang, 2019). They have the high responsibility of planning food, preparing the food
according to the requirement of guests. For example- Chef, cook and etc.
 Hotel general manager- The operation of the manager is to check all the activities in the
hotel and to solve the issues which might be faced by any guest. For example- Hotel
manager, Shift manager and etc.
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Skills required for roles in hospitality industry and shortage of skills in current time
For working in hospitality industry and in operational role individuals require particular
skills. These are the skills which are required in operational role of the hospitality industry and
The Savoy Hotel also asks for such skills when any individual comes for the job. The skills
which are required for the operational roles is that the person must be having good
communication skill as they have to contact with the guest on the daily basis and for this
effective communication is very important (Ma, Kim and Shin, 2019). This is checked during the
time of taking interview by the interviewer and not just communication but good listening is also
must in the operational role. The actively responding skill is also very important as the person
has to deal with the issues which are faced by the guests and not just active listening but
multitasking skills is also required. But some of the skills are there which the hotel is also not
getting which includes the customer service skills, multitasking person and developing the
positive and friendly attitude with the guests.
Review the skills gap with the different operational roles
The operational roles which The Savoy hotel requires is the manager and it requires good
strategic thinking skill as they have to manage different things on a single day. Workers in the
hospitality industry especially in hotels need to become multitasking person as they have to work
according to the requirements of the guest and the hotel management. The people which are now
getting employed for the post of the manager does not listen to the things and does not pay
attention to the rules of the hotel. They work according to their requirements and not just them
but the waiters which needs to work systematically does not adopt itself to the environment and
the communication skills of them with the guests sometimes becomes rude which creates the
situation of conflict.
Impact of skill gaps on hospitality industry and mention their solutions
The skill gap for the hospitality industry will not help in making the performance of the
hotel and this will make the image of the hotel poorer(Liu, 2018). The Savoy Hotel always tries
to fill the gaps of skill by employing efficient and good people who have the potential to work
hard and help the hotel in making and developing good relations with the guests. This is because
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the retention of guests in the hotel will help in bringing more guests in the hotel. For this, The
HR department of the hotel has to work hard and employ those people only who have the
potential to work hard and bring some good change in the hotel (Lo, Chin and Law, 2019). The
manager of the hotel needs to be good in all those skills which are required in the manager and
for this the hotel can provide the people who are lacking in some skills with effective training.
CONCLUSION
From the above report it can be concluded that this industry provides different types of
experience to the people by providing them various offers and services. hospitality basically
means the relationship between the guests and the host who is providing them the services. the
hospitality industry is helpful in generating the income not only to the owner but also the
government and helps in uplifting the economy.
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References:
Books and Journals
Bergel, M. and Brock, C., 2019. Visitors’ loyalty and price perceptions: the role of customer
engagement. The Service Industries Journal. 39(7-8). pp.575-589.
Berno, T. and Fusté-Forné, F., 2020. Imaginaries of cheese: revisiting narratives of local produce
in the contemporary world. Annals of Leisure Research. 23(5). pp.608-626.
Chandran, C. and Bhattacharya, P., 2019. Hotel’s best practices as strategic drivers for
environmental sustainability and green marketing. Journal of Global Scholars of
Marketing Science. 29(2). pp.218-233.
Erköse, H.Y., 2020. The battlefields of leisure: simple forms of labor control in the Turkish
hospitality sector. New Perspectives on Turkey. 63. pp.4-31.
Guchait, P. and et. al., 2019. The influence of perceived forgiveness climate on service recovery
performance: The mediating effect of psychological safety and organizational
fairness. Journal of Hospitality and Tourism Management. 40. pp.94-102.
Kirillova, K., Fu, X. and Kucukusta, D., 2020. Workplace design and well-being: aesthetic
perceptions of hotel employees. The Service Industries Journal. 40(1-2). pp.27-49.
Liu, C.H.S., 2018. Examining social capital, organizational learning and knowledge transfer in
cultural and creative industries of practice. Tourism Management. 64. pp.258-270.
Liu, K.N. and Hu, C., 2021. Investigating the Impacts of Hotel Brand Experience on Brand
Loyalty: The Mediating Role of Brand Positioning. International Journal of Hospitality
& Tourism Administration. pp.1-23.
Liu, S.Q. and Mattila, A.S., 2019. Apple pay: coolness and embarrassment in the service
encounter. International Journal of Hospitality Management. 78. pp.268-275.
Lo, M.C., Chin, C.H. and Law, F.Y., 2019. Tourists’ perspectives on hard and soft services
toward rural tourism destination competitiveness: Community support as a
moderator. Tourism and Hospitality Research. 19(2). pp.139-157.
Ma, Z., Kim, H.J. and Shin, K.H., 2019. From Customer-Related Social Stressors to Emotional
Exhaustion: An Application of the Demands–Control Model. Journal of Hospitality &
Tourism Research. 43(7). pp.1068-1091.
Orlowski, M., Bufquin, D. and Nalley, M.E., 2021. The influence of social perceptions on
restaurant employee work engagement and extra-role customer service behavior: A
moderated mediation model. Cornell Hospitality Quarterly. 62(2). pp.261-275.
Shin, H., Perdue, R.R. and Kang, J., 2019. Front desk technology innovation in hotels: A
managerial perspective. Tourism Management. 74. pp.310-318.
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