Analysis of the Hospitality Industry and Whitbread Hotel Operations

This report provides an analysis of the hospitality industry, focusing on the operational aspects and economic impact of businesses like Whitbread Hotel. It examines the interdepartmental coordination within Whitbread, highlighting how departments such as HR, Finance, and Purchasing collaborate to ensure smooth operations. The report also explores the broader economic contributions of the hospitality sector at local, national, and international levels, including job creation, revenue generation, and the influence of international hotel chains and franchising agreements. Furthermore, the report discusses key factors driving growth in the industry, such as brand identity and the increasing use of licensing and franchising, with examples like McDonald's. The analysis includes facts related to the UK hospitality industry, such as employment figures and revenue generation, illustrating its significance in the economy.

nd Functional unit
Contemporary Hospitality Industry
Hospitality sector is a fast growing industry that offers different services to their guests and
contributes either directly or indirectly in international, national and regional economy.
 Local economy: Hospitality industry comprises of different businesses that provide
different services to their customers and grabs their attention to earn high profits. Due to
this, tourist came for visits and spends money on different services like food, transport,
accommodation etc. local government get taxes from local business man and invest
collected amount in development of roads, building etc. at local level.
 National Economy- As hospitality industry grows at a fast pace, it offers many services to
the consumers and for this high man power is required. Due to this, people at national level
get different job opportunities so that they can earn a good livelihood. As UK is well
developed in hospitality sector, people earns a good livelihood and rate of poverty and
unemployment is low in nation.
 International Economy- Hospitality sector comprises of different restaurants, hotel and
other transportation services that offer services in worldwide context. Due to this, people
can travel at any place and it results in integration of national economies. Due to these
hospitality business, people spend money at international visits because of which GDP and
employment rate of company enhances in international context.
Facts related with Hospitality industry in UK
 Hospitality sector Employees more than 2 million people in accordance with 2017 report
and around 1 million people in 170000 commercial setups.
 This sector is fifth industry in UK which employees maximum people.
 Hospitality industry in UK generates a revenue of 90 billion pounds due to which tax
contribution reaches around 34 billion pounds. (Economic Contribution of UK hospitality
 HR department of company work in coordination with Food and Beverage department to
help them in hiring skilled chefs and waiters.
 Finance department of company works in collaboration with front desk department so
that payments and other finances of customers can be managed properly.
 Purchase department in Whitbread hotel works in coordination with finance department
so that they can get sufficient funds to purchase required resources and materials so that
other departments can work in a smooth and effective manner.
The contribution of the hospitality industry
Key factors driving growth at local and international level
International hotel chains and brand identity
International hotel chains drive growth at both local and international level because of
their brand image. High brand image is able to grab the attention of customers in a proper
manner. Hospitality businesses at global level such as Whitbread hotel have a strong brand image
in marketplace due to which customers prefer their services. It influences local economy in a
positive manner due to job opportunities for local residents. Beside this, international economy
will also positively impacted as overall revenues and economy rises due to expansion of hotel
chains.
Growth of franchising and licensing agreements
Licensing and franchising agreements are increasing now a day due to profitable
outcomes. Multinational organisations expands their business with the help of these agreements
to attain competitive advantage at global level. This will increase standard of living for common
people. As big brand grab attention of people in a proper way, their revenues are high. For ex,
McDonald's use these agreements to enter Asian and European marketplace that is beneficial for
people of UK. This implication benefits of these agreements at international level.
Interrelation of operational and functional units in Whitbread hotel
All departments in Whitbread organisation works in a coordinated manner with other departments
so that customers can be served in an effective manner. In this context some examples are given
below: