Contemporary Hospitality Industry: Analysis, Trends, and Development

This report provides a detailed analysis of the contemporary hospitality industry, focusing on its scale, scope, and diversity within the United Kingdom. It examines the organizational structures of different hospitality organizations, with a specific focus on Hilton Hotels, and explores the roles of hospitality-related organizations and professional bodies. The report delves into the staffing requirements for various hospitality sectors, including food and beverage, lodging, recreation, and travel and tourism, outlining the necessary roles, responsibilities, and qualifications. It also addresses operational, managerial, and legislative issues, as well as the current image of the industry. Furthermore, the report offers justified predictions for potential trends and developments, along with an impact analysis of these future changes. The report concludes by emphasizing the dynamic nature of the hospitality industry and the importance of adapting to evolving trends.

The Contemporary
Hospitality Industry

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Analysis of scale, scope and diversity of hospitality industry..............................................1
1.2 Organisational Structure of different hospitality organisations............................................2
1.3 Role of hospitality related to organisation and professional bodies....................................3
TASK 2............................................................................................................................................4
2.1 Staffing requirement for different hospitality industries.......................................................4
2.2 Roles, responsibilities and qualification requirement for hospitality staff...........................5
TASK 3............................................................................................................................................6
3.1 Operational, managerial and legislative issues in hospitality industry.................................6
3.2 Current image of the hospitality industry..............................................................................8
TASK 4............................................................................................................................................9
4.1 Justified prediction for potential trends and development in hospitality..............................9
4.2 Impact analysis for predicted trends and development in hospitality...................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................16

INTRODUCTION
Hospitality industry is a vast category of service sector in United Kingdom. Various units
are included in this field like restaurant, hotels, amusement park, cruise line, event planning and
theme parks. In following report different types of scale and diversity of hospitality industry of
today time will be discussed as it have very large scope in term of development and growth in
long term (AlBattat and Som, 2013). Organisational structure is also an important part of this
sector as it reflects relationship between many departments and company people which affect
future outcome of enterprise and position in service industry. Role of hospitality pays a vital part
for organisation and professional bodies. Different sectors of hospitality industry require specific
number of staff. As employees are main key in any service organisation like Hotel, so they have
to be assigned clearly stated roles and responsibilities with appropriate qualification. Recently,
there have been some emerging issues related to operations, management and legislation which
are affecting business in a negative way. Current image of hospitality sector is combination of
latest positive features and some dominating aspects which control the whole field. Apart for
this, there is a lot of potential trends and development in this service sector.
TASK 1
1.1 Analysis of scale, scope and diversity of hospitality industry
Hospitality word describes relationship between host and guest in which entertainment of
guest, and visitors is included. Service industry especially hospitality field is one of the fastest
growing sector ll over world as well as in United Kingdom (Amin, Yahya and Kassim, 2013).
There are approx 46000 hotels which are crucial contributor in economy with turnover of 40
million euro. Almost 127,000 proprietor are involved in this sector and 1.7 million people are
working as workforce. Main parts of this field are event planning, theme parks, cruise line,
transportation, lodging, restaurant, guest houses, hospitals, old age homes and hotels. Disposable
income and leisure time are key foundation of it which are spent by guests or visitors. As per
data it is third largest sector to provide employment in United Kingdom.
Today, hospitality industry captures lion share in business market of the country. So
there is large number of employees is required to deliver best service to guests. For example a
hotel is a crucial part in this sector which provides many services like food, accommodation and
many other luxurious facilities. There is huge diversity in this field because of innovation
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methods to deliver effective services to consumers. Different level of services creates diversity as
some hotels provide other services like sauna bath, internet, jacuzzi, night clubs, hair and beauty
salon, laundry, swimming pool, meeting rooms and internet.
As there are many types of hotels I United kingdom (Bharwani and Butt, 2012). Five
categories are there in term of stars in which highest category is five star and lowest category is
one star. For example, a rich consumer who wants to spend holiday in some luxurious place and
comfort then he will prefer five star. On other hand, if a guest wants to stay in hotel to attend a
meeting then he will prefer one star hotel as they are best for single person. According to survey
of British hospitality association, approximate 13 billion overseas people spend every year
almost 77 billion pounds in tourism.
1.2 Organisational Structure of different hospitality organisations
There are many different business organisation which are leading in hospitality industry
of United Kingdom. Two of them are Hilton hotels and Hilton which have their own specific
structure with a wide range. It is a connection between various departments and employees of it
as it affects service delivery to some extent. There are two structures Which vary form company
to organisation. Hilton is one of top hotels in United Kingdom which was founded in 1927. The
hotel has 4000 venues all over world in 71 countries and 146000 associates which makes it big
brand in service industry. Shareholders are also part of this like independent owners, customers,
vendors and franchisees.
There are four dimensions in its organisational structure like specialization,
formalisation, personal ratio and hierarchy of authority (Boell, Goss and Turner, 2013). It has a
well mannered organisation structure in which fist person as chief is general manager who have
control over activities and tasks. Second person in chief is executive assistant manger who
reports to GM. Then seven departments are under him like personnel which is related tom human
resource or employee of organisation. Another field is accounting in which financial records are
maintained in final accounts and daily ledger. Marketing and sales department work to promote
product and services of hotel top cover maximum consumers.
Other department like food & beverages, room division and purchasing also report to
assistant manager. Room division has some major department like font office, security and
housekeeping. On other hand, food & beverage has food production or kitchen, bars, restaurants,
room service and banquet & catering which are last part of structure. Hilton has little different
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organisational structure having first and top person as chief executive officer who has control
over three management officers to mange all activities and services. There is middle level
management who is reported by staff members of Hotel. Thus these two service organisations
have different level of management and structure to deliver the best service to consumers and
guests (Brotherton, 2012). These well maintained structure makes sure that close supervision and
fast communication among superiors and subordinates so that cost effective service can be
provided to consumers.
Structure of organisation in hotel industry-There are three types of organisational
structure like tall, flat and matrix Hilton hotel is larger firm, it has tall organisational structure in
which a long chain of hierarchy is organised. In this, managers have main control over activities.
Flat structure has few management level and targets on employee empowerment. In matrix
structure, there is combination of tall and flat structure. Employee report in both direction,
toward top and bottom which improve employee relationship.
1.3 Role of hospitality related to organisation and professional bodies
As Hilton is a leading business organization in service industry of United Kingdom, its
hospitality helps in improving its image. This helps in meeting consumer expectations as they
want staff to be friendly, helpful and courteous .Ways of service also plays a vital role to attract
maximum number of guests for achieving its objectives and goals of profit maximisation and
revenue generating. Another role of hospitality in hotel is that the more it is standardised, the
more the hotel will gain market share. Hilton contributes in economy of nation and employment
in country. People 1st is a vital role of hospitality as it provides accommodation to people who
are homeless at that time. British Hospitality Association play role of controller as it makes sure
that there is healthy competition in hotel industry. Institute of hospitality provides different
educational facilities to people which increase scope of this sector.
Foreign currency is received by them as give star hotel like Hilton target high profile
consumers for all over world. Employment is also a major role and contribution of hospitality
related organisation as there are various people who work in hotel industry to deliver services to
guests. It also helps in uplifting living standard of local society by making efforts for them like
charity programmes.
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Professional bodies include different departments which contribute in operations of
organisation like Hilton. Some of major parts of hotel are housekeeping, engineering, front
office, accounting, human resource, security and food & beverages (Hertog and Gallouj, 2011).
Engineering department of hotel helps in maintaining machineries which are used in different
processes. For example, boilers, sewage temperament and water heating etc. Through best
services in this department, hotel can satisfy its consumers and sustain them. Another important
part is front office which represents whole organisation in front of gusts, so effective employees
in this department contributes in attracting maximum number of customers.
Food and beverage department is also a crucial part of hotel industry. As Hilton is a top
brand in hospitality sector, it tries to maintain food quality so that maximum customers can be
satisfied. Security department contributes in hotel growth in term of giving best safety service to
customers or guest. Human resource management include satisfaction and work performance of
employees of hotel (Segers and Janta, 2011). So role of HR manger is important for best
hospitality. Accounting department of Hilton hotel keeps records related to receivable,
budgeting, financial reporting and payables which help in controlling expenses and cost of final
profit and services. Housekeeping makes efforts to make suer that guest room is clean to satisfy
consumer with best services.
2.1 Staffing requirement for different hospitality industries
There are different industries in hospitality sector. Various categories like semi skilled,
skilled and unskilled are required for specific sectors. Four main industry which require different
type of staff as followings.
 Food and beverage-Food and beverage is one of the largest segment of hospitality
sector. This provides almost 40 percent meal eaten by people in United Kingdom. As so
many consumers for eating, it leads to more scope of business. Being a vast fold it
requires a huge amount of staff with qualification. This industry requires highly skilled
people as chef who cooks food. To maintain hygiene, adroit person is required and semi
skilled staff for other services to impress consumers. Another requirement in staff is
sound product knowledge to provide best hospitality service. For service staff,it is
necessary to work as part of a team.
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 Lodging-For accommodation, this industry is needed. It is growing sector ij hospitality
organisation like Hilton, United Kingdom. Staff of this industry needs to have
interpersonal, leadership and times management skills which play vital role in improving
performance of employees to deliver best quality in services to customer (Ladkin,
Brownand Lugosi, 2011). As accommodation must be clean and well maintained so staff
requires to be semi-skilled but must consider cleanliness to sustain guest. For example,
being a leading organisation in hospitality sector of United kingdom, Hilton requires
polite and quick at work staff which can contribute in achieving a major position in
market.
 Recreation- Recreation is a kind of activity in which people rest , enjoy and relax. In
hospitality sector, this industry is also an important part as it is very fascinating field in
term of business. This facility provides mental and physical refreshment to person. This
industry varies from person to person as different people have their own specific
requirement. So the staff is required to be well qualified in recreation activities or
specialist so that best service can be delivered (Jayawardena, 2010). For example, a
particular spa is demanded by guest then staff is required to be well experienced.
 Travel and tourism-This is also an important and fast growing industry all over the
world. As many number of consumers are involved in it so there is also requirement for
well organised staff to guide visitors or guest to sustain them in long term. For example,
for transportation, well trained driver is a must need and for visiting a destination, a
qualified guide is required.
2.2 Roles, responsibilities and qualification requirement for hospitality staff
Different departments in hospitality industry requires specific qualification to fulfil their
roles and responsibilities and deliver their best services to consumers. One of the most important
part of a hotel in front office as it gives first impression to guest. So staff of this sector must be
good looking with great communication skills. It is considered as nerve centre because guest
has constant interaction with this staff. Role of employees in this field is to inform guest at
regular basis. Marin responsibility is to solve consumers problem in time with accuracy related
to day to day operational activities.
Another department in hospitality is Housekeeping which must provide best cleaning
service to gust for great experience. As it is is matter of hygiene, staff must be well qualified.
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Manager of housekeeping must be a degree holder and his main role is to arrange every single
thing in room lie pillow, bedsheets, and other equipments clean and well organised to give
satisfaction to guest. Followings are some qualifications which are required in hospitality staff.
 Team work-Being a member of service industry, staff must work as a team so that
service can be delivered in an effective way to guest (Jones, Jones and Comfort, 2016).
They must do full efforts to make consumer happy with service quality.
 Great people skills-Staff in hospitality sector must be polite and in conversational
manner while interacting with consumers, vendors or any other member.
 Leadership and enthusiasm-Staff member in hospitality industry as hotel must have
lead a group in an efficient way to carry every activity.
 Enthusiastic and great attitude-Staff of hospitality sector must be striving to do best in
their job which consequently will benefit the hotel organisation like Hilton, United
Kingdom.
Roles ans responsibilities of hospitality staff
1. Manager of a hotel has responsibility to oversee operations related to
maintenance, finance, staff development and guest relations. For this designation,
he has to gain quality as work experience of two years. He must have degree in
hotel management forma reputed institute.
2. Front office manager duty to provide staff training, staff scheduling and inter
department communication in hotel.
3. Concierge is responsible for reposing inquiries by guest.
4. Security of hotel has responsibility to oversee safety of guest, conducting walks
for security and to solve problem of guest related to any issue. For this
responsibility, the candidate must have license for firearm and high school
diploma.
5. Sales department has responsibility to maximise daily rate of hotel, solve
operation issues in hotel (Kim and Hardin, 2010). Sales coordinator has role to
assist director of department in meeting and conferences.
6. Housekeeping manager has responsibility to maintain cleanliness level of all
rooms.
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3.1 Operational, managerial and legislative issues in hospitality industry
Today, hospitality industry has become inseparable part of every person life. It is a vast
field which is operating business all over the world. United Kingdom is developed country so
this sector is also fully developed to provide best and quickest service to consumers in this sector
of country. Along with these advancements, there are many problems which are faced by all
service organisations like Hilton. These issues can be described as following.
Operational issues
 One of the major problem in this sector is that there is labour and skilled employee
shortage which is increasing day by day so many service organisation have to hire foreign
workforce which leads to more cost to company.
 Another expense which is high in amount in today time is constriction cost which service
organisation faces to renovate their place to attract more consumers in future.
 As technology is changing with time, it has incurred problem to organisation in service
industry in term of cost for updating itself to provide latest services to customers
(Kusluvan, Kusluvan and Buyruk, 2010). It results in heavy cost to service price.
 Branding is also a major issue in hospitality industry as consumer gets confused to
choose most suitable service organisation for great experience in term of accommodation,
food and other facilities.
Managerial issues
 One of most crucial issues in service sector is customer satisfaction which is faced by
management of a hotel. As most of consumer in today time, are hard to predict in term of
their desire and expectations from hotel. For example, sometimes customer always right
technique also does not help to provide complete satisfaction to them.
 Issue related to reasonability in hotel-Sometimes, service organisation which are at
coastal areas have to reduce some staff to decrease cost in off season which needs proper
management. On other hand, peak time requires more staff than normal and management
have to arrange effective employees.
 To compete at high level with competitors in hospitality industry, management and
leaders have to worry about strategies for better performance in long term.
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 Another issues which are faced by manager of hotel is to make revenue management and
pricing policies for achieving target with accuracy and efficiency.
Legislative issues
 One of the major issues which are faced by hotel is to consider laws related to minimum
wages to workers (Maxwell, Ogden and Broadbridge, 2010). If it is avoided by
management then there might be legal action against organisation as per provision in
employment act of United Kingdom.
 Another issues related to legislation is that hotel activities and services are bound to
consumer protection act as it has to be obeyed by every service organisation in hospitality
sector.
3.2 Current image of the hospitality industry
Hospitality industry is a frequently changing in time. According to current data, overseas
visitors have spent in United Kingdom fell by 21 percent resulted in 955 million euro. As per
government latest overseas travel and tourism data, trips were dropped by 8 percent as 1.75
million. Total overseas visit to United Kingdom is recorded as 2,315,000 and UK abroad trips
are 3, 928, 000.Today demand of hotel industry is affected by many factors like preferences of
guests and government policies related to hospitality (Nickson, 2013). For example, currently,
London has decreasing rate of customers attraction because of lacking in facilities. Another
current scenario of this industry is that aged and disabled people have raised demand of
accessible rooms.
Economic fundamentals for guests or customers in hospitality industry are solid in
current time which gives a good reason to grow in long term. Today, consumers want
personalization, authenticity and removal of friction. Travel and hospitality organisations try to
integrate learning related to machines and analytical advanced to adapt consumer behave on
immediate basis. Travel sector, restaurant and hotel market are expanding their scale of business
to achieve goals and objectives in long run. Now a days, hotels focus on property website as
there are many consumers who communicate through internet. Content marketing is also an
effective way which is used by hospitality industry top attract people.
This marketing includes social media platforms, blogs, e-books and webinars Which are
most common method in today time of competition in hospitality sector in United Kingdom. It is
very cost effective system that reaches to public in quickest and easiest way. Quality of service
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in this industry is mostly focused by organisations involved to provide great experience
especially in overnight trips in hospitality field in current time. One of the crucial thing in this
sector is food, so many hotels like Hilton try to provide more healthy and quality ingredients in
food to consumers to get maximum satisfaction in long term.
Today mobile is most commonly used device by customers in hospitality industry, so
now a days, many service organisations in this field try to capitalize various mobile applications
so that maximum consumers can be covered and attracted to buy particular service of Hotel or
any other organisation (Pine, Qiu and Qi, 2010). Along with latest trend in hospitality industry,
different organisation which provide services to consumers try to focus on international visitors
to gain maximum profit in business and accomplish objectives and goals in long term.
4.1 Justified prediction for potential trends and development in hospitality
As hospitality industry is one the most growing sector all over the world, there isa lot of
scope of growth in future. International visitor are expected to be increasing in near future due to
development and growth in this field. Budget airlines is one of the great innovation which has
boosted scope to grow and budget hotel also has increased number of guests from all over world
with cheap rate of accommodation and food (Sisson and Adams, 2013). These features has
opened door to more development in this sector of United Kingdom for future. E commerce is
also another great invention in hotel industry which has eased booking activity and any types of
changes in it at any time.
There are many ventures through which service organisations are increasing their
position in market which will benefit them in term of profit and customers. Another potential
trend in hospitality sector is that due to continuous growth in tourism sector, there might be some
difficulty related to provide qualified talent in hotel. There might be some some challenging
climate in luxury brand in hotel industry. For example, Hilton is preparing employee talent for
branding to increase customer satisfaction in United Kingdom as well as all over the world.
Innovative methods in technology also plays a vital role in latest trend in this sector which helps
in providing better service to customers.
Some negative impact of latest trend in hospitality industry in which sharing economy is
then most crucial. Due to this latest trend, traditional hotels might get diminishing number of
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