Contemporary Hospitality: Industry Analysis and Trends

This report provides a comprehensive analysis of the contemporary hospitality industry, encompassing various business types such as food and beverage services (restaurants, bars, pubs) and lodging (hotels, resorts). It delves into the operational and functional departments of a hotel, using The Savoy as a case study, and explores the organizational structure. The report identifies the skills required for different employment roles within the industry, addressing current skills shortages. It also includes a PESTLE analysis to examine external factors influencing the sector and a SWOT analysis of Hilton to assess its internal strengths and weaknesses. Furthermore, the report highlights current and potential trends shaping the hospitality industry, offering valuable insights into its evolution and future prospects.

CONTEMPORARY
HOSPITALITY

Table of Contents
INTRODUCTION......................................................................................................................2
P1 Different types of business within hospitality industries and their offerings...................2
P2. Operational and functional departments of hotel............................................................5
P5 Skills required for 4 different employment rolls and relevant current skills shortages. . .9
P6 PESTLE analysis of organization...................................................................................12
P7 SWOT analysis of Hilton...............................................................................................16
P8 Current and potential trends in hospitality industry.......................................................18
CONCLUSION........................................................................................................................19
REFERENCES.........................................................................................................................20

INTRODUCTION
Hospitality industry is a big category of fields in the service industry. Present
project is about the Hospitality Industry. Savoy, one of the oldest multinational
hospitality organisation headquarter in Strand, London, UK. Present report will provide
the deeper insight of different types of businesses in hospitality industries and the
product and services offered by them. The study will cover the scope of various types of
sectors in the industries like hotel, restaurant, bars, pubs etc. later project will provide
the brief introduction of Savoy hotel along with its organizational structures,
operational and functional departments. Furthermore, project also highlights on
different types of business in hospitality industry with diverse products offered by
them. Apart from this, analysis of the internal and external factors that are affecting the
hospitality sectors and present issues faced by hospitality sectors are analysed in this
report. Along with that, evaluation of the potential trends and developments that are
affecting the hospitality sectors are discussed in this report.
Hospitality industry is the large sector which has huge contribution in the growth of an
economy of nation. There are many kinds of businesses which are included under this are
related to travel and tourism, hotel, restaurants, accommodation facilities etc. Mainly it helps
in developing society and infrastructure that may contribute in improving economy of the
nation.
P1 Different types of business within hospitality industries and their offerings
Hospitality Industry:
Hospitality industry refers to services that help in entertained guests and
visitors. The main aim of this type of industry is to provide quality services to their
customers as per their needs and wants. Mainly hospitality industry includes
restaurants, hotel, resorts and many more. This industry plays a vital role in the growth
of country. It builds a relationship between guest and host. As there are various kinds of
business which come under the hospitality industry. These are as follows:
 Food and Beverages industry
 Lodging- Accommodation

 Camping grounds
 Holiday and short-stay accommodation
 Licensed restaurants
 Licensed clubs
 Take away food shops
 Unlicensed restaurants
Food and Beverage Services:
The food and beverage are as old as human itself. It is a category of business that
is complex global collection of diverse industries that looks in food processing and food
service and hospitality. Basically, it is defined as the art of supplying food and beverage
services away from home or to the home but processed at elsewhere. The food and
beverages include the restaurant, bars and pub. They provide the various offering to
customers which are as follows:
Restaurant:
Restaurant is a business which prepare and serves the food and drinks to
customers for money. It provides the tangible services to its customers. As generally
these services are provided within premise but now days take away services are also
there. It is managed by a manager known as restaurant manager who take care about
grievances of customers and handle the staff. The responsibility of managers includes:
 Fine dinning
 Theme
 Ethnic
 Quick service
These are several duties of a manager which one needs to perform.

Bar:
Bar is a retail business that serves the alcoholic beverage like wine, beer, liquor
etc. Basically, people visit the bar to enjoy the free time with their friends and
belongings.
 The high concept Bar
 The hotel Bar
 The Live Music Venue
 The Sports Bar
Pub:
A pub is licensed place to sell the alcoholic drinks, soft drinks, meals and snacks.
Since pub offers the complete food so it can be called a restaurant also, where families
and friends come together for eat and drink.
 The Neighbourhood Dive
Lodging – Accommodation:
This sector of hospitality industry features from luxurious hotels to lavish resort
and camp grounds. Accommodation is a broad sector of the hospitality industry, ranging
from bed and breakfast enterprises and hotel. The hotel is basic which comes under
this.
Hotel:
Hotel is a place where the accommodation, food and beverage service available
and guest pay the rent for staying in the room and for taking those facilities is called
hotel that provide services to their guest. Basically, these are held out by proprietor.
And offers the facilities like food, drink, sleeping accommodations etc. People can live in
hotel as long as they want by paying rent. As it is managed by the skilled peoples. Hotels
always manage by the one who has the good skills. It allows the people always manage
by the one who has the good skills. It allows the people to organize the conferences,
seminar and parties at hotel.
 Conference hotel

 Convention hotel.
 Resort
Types of hotels:
 Economy/ Budget hotel: This particular hotel would be meet the basic
requirements of the guest through providing comfortable and cleaning room for
a comfortable stay.
 Mid- market hotels: It is suite the hotel that can offers small living rooms with
reliable furniture and small bed rooms with the king sized bed to the tourists.
 Luxury hotels: These types of hotels are offering world class services that are
providing restaurant and lounges, meeting rooms and dining services. this is
categories into Five-star hotel.
P2. Operational and functional departments of hotel
The Savoy is a five-star luxury hotel in United Kingdom. It established in the
year1889. It has 268 rooms including suites and has 7 restaurants in the hotel. As one of
the first luxury hotel in Landon, The Savoy set a new standard for technology, comfort
and luxury. It was the first to feature electric lifts. Guest rooms were connected by the
speaking tubes to various parts of the hotel. The 1900s were year of extravagance and
exuberance and, The Savoy parties and balls became legendary. It entered in second
century with the same style and enthusiasm that had characterized its first. It follows
the tall organisational structure.
Organisational structure: It is defined as the system that is used to define a
hierarchy within an organisation. There are basically main four type of structure in
organisation that is functional, divisional, matrix and flat (tall). A tall organisational
structure is one of the main important for business structure as it is related to time
testing and effectiveness to the organisation. This type of structure allows the manager
of Savoy to make crucial decision related to operational strategy and them communicate
these decisions to other section of hotel such as housekeeping, food & beverages,
cleaning staff. This would be beneficial for them as it increases the functional and satisfy
in more effective customer.
Operational department of hotel: Savoy is one of the most popular Hotel of . This
hotel has different operational department such as, executive, front desk services,

housekeeping etc. that help in easy functionally and provide satisfactory services to
their visitors.
Housekeeping: This is the main services that make customer feel comfortable and
satisfy such as clean room, easy approach of food at customer request, cleanliness of the
sheets to maintain toiletries stocked.
Front desk services: This department is related to handling of visitors, constantly
contact with the guest at first level. This process is related to providing a detail
information about hotel and another functional department available within hotel.
Executive: These are the decision maker within the business and these are
department head of various sections, manager. They are the one responsible for various
other function of hotel such as accounting, marketing etc.
Functional department of hotel
Food and Beverage operational of hotel:
Food and Beverage operational of The Savoy hotel is responsible for the
efficiently supply of food and beverage in the hotel. It is the basic thing which are
needed by the customers.
Service department:
Service department in the hotel helps in effective and smooth supply of food and
beverage. This department provide service to its customers time to time according to
the requirements.
Finance department:
Finance department of The Savoy hotel manage the finance related activities. It
provides money to future expansion. It also provides money for day to day expenses for
purchasing the food and beverage.
Security department:
Security department of The Savoy hotel maintain the proper security in the hotel
and it feels the people safe. Savoy hotel organisational structure is hierarchical because of

massive size of business that serves approx. 140 million guests (JOHNSTON, CLARK and
SHULVER, 2012). It is a way in which organisation is structured that uses different level of
authority and vertical link. In this structure, higher level control lower levels of hierarchy. It
is in a pyramid structure.
The organizational structures of The Savoy hotel follow the tall structures.
These types of structure permit the organization and leaders of top level of Savoy hotel
to make major decisions of organization regarding operational strategy and then
exchange all those decisions to upper level and mid-level managers. A various level of
authorization for different action taken by managers is offered by tall organizational
structures. This type of structures assumes that the employees of junior levels do not
have much knowledge required for the decisions of the company.
The Savoy has some operational department which are as follows:
Rooms and Suites:
The hotel has 267 luxury rooms and suites and dual historical influences
featuring elegant English Edwardian design or sensational Art Deco style. As the guest
who chooses the suites room facility enjoy the butler services from hotel's operational
department.
Dining
The fine dine has always been considered as important part for hotel. As
Kapasar's at The Savoy have informal dinning in stylish Art Deco setting, whilst Gordon
Ramsay's Savoy Grill presents a British grill menu with several other touch like French.
The beautiful Thames Foyer, truly the heart of hotel is where The Savoy serves
London's best conventional Afternoon Tea, a custom which remains a British tradition.
Bars
The Savoy's operational department provides the bar facility to their guest and
hotel bar named at world's best bar in 2017. As it provides the various drinks to their
visitors which they enjoy.
Shopping and Spa:

The shopping facility is also being provided by the hotel for convenient of their
guest and they also provide relaxing feature like spa.
There is various functional department in Savoy hotel which are discussed as
below:
Information Technology:
Information technology department is the backbone of Savoy hotel as various
activities are depended on this department. As the computer systems are connected
with IT department as it stores the data of guests. So it is very important for hotel to
have the better IT in organisation.
Human Resource:
Human resource department take care of managing the staff and their work. The
main work of human resource is to recruit the right person for right position at the
Savoy Hotel so that goals of hotel can achieved. Apart from this, it takes care of leaves
and out of staff in organisation.
Security department:
This department denote work of security in institution where property and
workers are involved. Savoy hotel is providing security with classified information
about activities. They are providing complete security during emergencies. Services
provided by hotel are secured with the help of this department. In this, company feel
safe and alive.
Finance department:
This department is playing important role which manages monitory terms. Savoy
hotel is making prior use of this department by introducing new schemes, mobilisation
resources and social welfare. Employees of Savoy hotel deals with allocating budgets
and monitoring expenditure. Hospitality industry is controlling expenses and
forecasting demand of customers.

P5 Skills required for 4 different employment rolls and relevant current skills shortages
Hilton hotel is an American multinational hospitality organization which
engaged in managing and franchising a wider portfolio of hotels and resorts in order to
expanding their business operations at global platform. Thus, company is having a
positive goodwill at marketplace because of its qualitative services and brand image at
marketplace. Therefore, company is having large number of staff members in distinct
branches which are playing numerous of roles and responsibilities in the organization.
In fact, company is following suitable procedure for hiring their employees by analysing
necessary eligibility and qualification which is required for certain job role (Chang,
Gong and Shum, 2011). Therefore, some of the relevant employment rolls of Hilton
hotel are discussed as follows-
Hotel manager- Managers are really indispensable for the proper management
of whole organization at operation level. In fact, it helps in ensuring that there is a
minimum chance of mistake and assigned job to every manager of other departments in
order to attain set objectives goals in a defined time frame. Thus, some of the necessary
skills are required for becoming a manager of whole organization such as;
 Effective communication skills- It is essential for manager to have knowledge
of communicating with others in order to express views or opinions in front of
staff members. In fact, this will help manager in managing business activities in a
better manner by satisfying the needs or demands of employees as well as
customers too.
 Leadership abilities- One of the most essential capabilities which are required
to manager is to lead a team in effective manner by having positive relations with
each employee. Along with this, this ability helps in proper functioning of whole
operations by assigning job to the employees as per their skills and abilities.
 Capability of motivating others- Manager of organization is liable for
encouraging other staff members to continue the business for longer time period.
For example; teach other head departments about the technique of convincing
employees and how to encourage them towards certain objectives (Buhalis and
Crotts, 2013).
 Ability to make effective decision- Managers are liable for managing all the
related activities due to which they get involved in number of complex situation

where they need to take instant decision. It means, managers must be very clear
towards their judgement because all the departmental staffs are depending upon
them only.
 High level of confidence- This factor is one most indispensable element which
aids an individual to perform all the business activity in corrective manner. In
fact, manager of large enterprise is revolving around numerous of situations
where they need to be very confident in order to handle that circumstance in
suitable way. For example; while dealing with customers, suppliers, clients and
many more. As it is very important to have financial skills for the manager in
order to take financial decisions. The financial skills enable manager to allocate
fund accordingly and make financial plan for the future.
 Risk taker- Business is uncertain because fluctuation in internal and external
factors might incur at any time without any indication which may further affect
the success of an organization. Therefore, it is essential for managers to be
prepared for unusual situations.
Front office manager- Reception is a place where customer entered first for
asking any queries, reservation, and suggestion and so on. It means, manager for front
office is liable for make sure that all the things are properly managed, and works are
allotted to each employee as per their skills. As a result, company get succeeded in
creating positive relations with customers because management of front office is
observed by consumers while selecting hotel. Therefore, a person who is managing
front line needs to learn the ability of impressing clients by fully dressed with attractive
personality as well as know how to behave with end users. The front office manager
needs to have problem solving skills so that they can solve the customers and visitor’s
problem. As manager should have communication skill also so that one communicates
in better way with their guest and provide required information to the guest.
Food and beverage manager- Food is a first priority for every individual
whosoever is staying at hotel but management of beverages in large hotel is really a
complex job because it helps in converting negative feedback into positive one.
Therefore, it is essential for company to focus on their catering services by delivering
tasty food to their customers in a defined time frame. Thus, it is only possible if manager
of food or beverages are properly managing food services ( Testa and Sipe, 2012).

Restaurant and food service manager- Serving to a client is priority task for
hotel industry because entire hospitality sector is stand for their best services to end
users. Therefore, there is also a manager for managing food services in the restaurant of
Hilton in order to make sure that every individual is having their food in a given time
frame. Along with this, liable for ensuring that none of the client get disappointed
during having food at restaurant by behaving a polite manner. Executive manager has
various roles and responsibilities such as managing staff and assuring that guests are
enjoying the atmosphere. As manager also liable to delegate task to various staff
according to their capacity.
Apart from this, there are some other roles are identified at workplace as per the
levels or might be in hierarchical position such as; top most authority, middle level
managers and supervisors or lower level staff, leaders, head and many more.
Top level Authority
Middle Level Department/Authority
Lower Level Members
 Top Level Authority- Board of directors, Managing Director, Trustees, Investors
and various other assistant heads are identified which are falls under this
employment role.
 Middle level- Managers are considered as middle level of employment and
playing their roles as per requirement. For example; Supervisors, managers,
leaders, staff head, employees of high qualified and many more members are
there at workplace which comes under this.
 Lower level- These are the members who works on the order to middle level of
staff as members of middle level is liable for managing lower level. For instance;
Waiter, laundrymen, cleaner and so on.
Hence, these are some necessary employment rolls which is required for Hilton
hotel because this association is famous for their services at global platform. Along with
this, always tries to serve their customers in best positive manner by fulfilling the needs
of users as per their requirement. But at the same time, it is also observed that there is
some shortage of skills in various manager due to which they get failed in fulfilling all
their assigned duties and obligations. For example;