Contemporary Hospitality: An Analysis of the Industry Report

This report offers a comprehensive analysis of the contemporary hospitality industry, with a specific focus on the Intercontinental Hotel Group (IHG). It begins with an introduction to the sector, emphasizing its significance in providing quality services and its contribution to economic growth. The report then explores different types of businesses within the hospitality industry, including lodging, food and beverages, travel and tourism, and entertainment. It delves into the operational and functional departments of IHG, such as housekeeping, accounting, front desk services, human resources, finance, and purchasing. The report further discusses the hospitality industry's impact on local, national, and international economies, highlighting its contribution to GDP, employment, and tourism revenue. Various operational roles within the hospitality industry are examined, along with the necessary skills and current skill shortages. The report also includes PESTLE and SWOT analyses, evaluating the external factors and internal strengths and weaknesses affecting organizations within the industry. Finally, the report addresses current and potential trends, concluding with a summary of the key findings and a list of references.

Contemporary
hospitality

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Explore the different types of business within the hospitality industry and the diverse
products and services they offer .................................................................................................3
P2 Examine a range of operational and functional departments of the chosen organisation .....5
P3 Discuss the contribution of the hospitality industry to local, national and international
economies ...................................................................................................................................6
TASK 2............................................................................................................................................7
P4 Examine a range of various operational roles within hospitality industry.............................7
P5 Analyse the skills necessary for roles and current skills shortages within the hospitality
industry........................................................................................................................................8
TASK 3..........................................................................................................................................10
P6 Evaluate PESTLE analysis which will affect the development of organisations ...............10
P7 SWOT analysis of intercontinental hotel group...................................................................11
TASK 4..........................................................................................................................................13
P8 Current and potential trends in the hospitality industry.......................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16
Books & journals ......................................................................................................................16

INTRODUCTION
The hospitality sector is defined as the most profitable sector of the industry. This sector
emphasises on providing quality services and products to clients and customers. This industry
can have profitable business only when they are offering quality services and products. The
hospitality companies must adopt new technologies and techniques in order to increase the level
of satisfaction of employees. The hospitality industry contribute a lot in increasing GDP of the
country. This helps in increasing various opportunities in the country such as employment,
economic growth, etc. The service industry totally depends upon customer satisfaction (Dogru
and et. al., 2019). In the following report the company which is considered is Intercontinental
hotel. This is a public limited company that was founded in the year 2003 by Christopher
Marshall. This organisation has resorts and hotels in UK and headquarter of this hotel company
is situated in Denham, England. This report consists of different types of business within
hospitality industry and diverse products and services they offer and range of operational and
functional departments. This report also describes contribution of hospitality industry to local,
national and international economies. This includes range of different operational roles, skills
required for different roles in the hospitality industry. At last PESTEL analysis and SWOT
analysis is done for the hospitality sector and current potential trends are discussed.
TASK 1
P1 Explore the different types of business within the hospitality industry and the diverse products
and services they offer
The Hospitality industry consists of a large number of services and products that are
offered by the organisation. The hospitality industry depends upon various factors like
availability of money, leisure and time. The different businesses involved in service industry are
discussed below -
Lodging and Accommodation: Accommodation and Lodging is an important part of the
hospitality sector (Dzhandzhugazova and. et. al., 2016). Lodging is associated with luxurious
hotels, resorts, lodges and motels etc. where as accommodation is a broad term which is
exclusively used for food, a place to stay and other basic facilities needed for sustaining in
market. The accommodation and lodging sector of the hospitality sector can be further divided
into three sectors -

 Lodges: Lodges are defined as the basic stay facilities given to travellers and passengers
who are travelling from one place to another. In this basic amenities are provided to
people and a home stay feel is given by providing comfortable night stay. There are a lot
of people who book lodges to stay (Goh and Jie, 2019).
 Suits: These are defined as the luxurious rooms which are provided in hotels for
travellers and tourists. These give a comfortable stay and security to individuals. These
are expensive rooms provided to rich guests. Generally such rooms are taken by
celebrities and high class people. These suits are booked by posh people for their stay.
 Resorts: These are an emerging way of offering hospitality service to people. Resorts are
mainly made at exotic locations like beautiful mountains or beaches which are generally
very lovely places. This provides These provides rejuvenation and relaxation to people as
they enjoy beautiful nature away from hectic city life.
Food and beverages: This is a large sector of hospitality department and this consists of
management of providing food and beverages to people. It is important part of this industry as
people who stay in hotel want to have food and drinks during their stay. There are various kind
of food service provided in the intercontinental hotel -
 Quick-service establishments: These provide food and snack to guests and customers
who are searching for a quick meal. These type of food items have become trendy in
the recent years. There are a lot of customers who require snacks in their meal.
 Catering business: This consists of catering food in various events and functions. The
catering service includes providing food, beverages and drinks at special occasions like
weddings, birthdays and other functions or parties. This has contributed to a large part of
food and beverages department (Jones and et. al., 2016).
 Full service restaurants: these are the largest part of the food and beverages department.
They provide full multi course meals, drinks and other services to customers with waiters
to tend to their needs and render services to them.
 Travel and tourism: Each and every individual who is travelling to different place has to
stay at hotels or lodges. So travel and tourism is an essential part of the hospitality
industry. People generally travel for different reasons like work, business and other
reasons. Hospitality sector provides different types of services for tourists like cruise
airliner companies, Road travel companies etc.

Entertainment industry: Entertainment is an important part of the service and hospitality
sector has to ensure that it is providing entertainment to guests and customers. People travel to
different places for spending their holidays and relaxation from hectic life. This includes various
recreational activities like gaming, adventure sports, night clubs, pubs sports etc.
Timeshare: This sector is not that much important as this part is not given much attention
(Kandampully and et. al., 2015). This consists of ownership of a property or a place for a limited
period of time.Places like convention centres villas, resorts and beach houses are commonly
available for timeshare.
P2 Examine a range of operational and functional departments of the chosen organisation
There are different departments in hospitality sector. They all have specific roles and
responsibilities which are to be done properly. There are various departments in Intercontinental
hotel which are included in operational and functional activities of hotel. These operations are
mentioned below -
Operational Departments
The Intercontinental hotel must utilise it's resources effectively and grow it's business
effectively. A proper utilisation of resources is important so that employees and workers can
work effectively and achieve targets in specified time. The different operational operations of
this department are mentioned below-
 Housekeeping- This is an essential operation and function of the hotel industry. The
main objective of housekeeping department is to maintain cleanliness and tidiness in
hotel premises and rooms. They have to maintain quality of rooms and services offered
by hotel. In context of intercontinental hotel, When guests leave their rooms it is ensured
that their rooms are cleaned and clean towels and bedsheets are given in these rooms
(Kim and et. al., 2015). Other functions of housekeeping department consists of checking
that each and every hotel room is clean and also sheets, wash rooms are cleaned, towels,
brush and bath kits are placed in every room in an appropriate manner.
 Accounting- Accounting is also an important function of the organisation. This is an
important part of the organisation which is involved in making effective plans. Every
company has some financial aspects like budget, money, revenue and profit which have
to be worked upon for getting growth and success in business. The accounts department
is responsible for managing executive team and this helps in giving proper data and

information to the management. The accounting department helps other department of the
organisation by providing them money for performing daily business operations.
 Front Desk Services- The front desk department of hotel has to take care of reception
area of hotel. This department is involved in constant interaction between management
and customers regarding their bookings and plans about stay (Lopes, 2016). This service
emphasizes on proper data of customers and guests. Such information consists of rooms
availability, facilities, food facility, discounts,etc.
Functional Departments
 Human Resource Department- The human resource department of Intercontinental
hotel group is involved in different functions like recruiting, selecting, training and
development. This department of hotel is involved in motivating employees and staff for
providing quality services to guests and customers. Employees and customers are given
motivation by giving them attractive bonuses and incentives.
 Finance Department- The finance department of Intercontinental hotel provides money
for doing business activities and operations in an effective manner. There is a proper
budget that is given to every company for achieving their targets and goals in specified
time. The intercontinental hotel has to make proper use of money given to them for
performing activities of hotel (Melissen and Sauer, 2019).
 Purchase Department- The purchase department is directly associated with finance
department of the hotel. The individual of purchase department is take money from the
finance department for buying new materials and items and transporting them to different
places.
P3 Discuss the contribution of the hospitality industry to local, national and international
economies
The hospitality industry is experiencing a great profit every day. This has resulted in
great increase for international, national and local economies. The hospitality sector has
contributed a lot in the gross domestic product, employment, economic development our national
income (Penela and et. al., 2019). The hospitality industry contribute to economies of country by
the money which tourists spend while staying at hotels, restaurants and places of entertainment.
The hospitality industry helps in increasing effects on the pharmaceutical industry, retail goods

industry and local craft industry. There is growth and development in public infrastructure like
roads and transportation. There are a lot of employees who are working in the hospitality sector
in UK. This country is declared as the fifth largest industry of hospitality in the country. The
revenue generated by hotel industry was in the ballpark of 90 billion pounds. This has
contributed to increase in the gross domestic product. Apart from this around 53900 jobs were
created in the restaurant industry (Porcu and et. al., 2019). The total contribution of this sector to
the GDP and the national income has been around 34 billion Euros in the year 2017. There is a
per capita increase in the income of people due to number of jobs of hospitality sector in UK.
The hospitality industry also helps in increasing the per capita income of the country by
providing such huge number of jobs to the people. This raises the standard of living of people in
the country thus increasing the other sectors growth by increasing cash flow. International
tourism is helping the country by providing a lot of profit and money taken from tourism and
hotel stay. The local economy is also uplifted by international shoppers as they tend to shop
more extensively does increasing the revenue generated by the local economy. Licensing and
franchising has major contribution in developing global hospitality brands in UK this not only
generates high level of taxes for the country but also improve the overall economic condition of
UK.
TASK 2
P4 Examine a range of various operational roles within hospitality industry
In every organization there are various types of departments and roles which assist them
in order to attain their goals and objectives. Each individual working within the industry have
some skills and knowledge about a particular work. It is necessary for the management team of
the company, that they should examine and assign duties according to the capabilities and skills
of individuals (Radojevic and et. al., 2015). There are various operational roles included within
the industry, which will assist them in order to accomplish their goals and objectives. Some of
the important operational roles are as follows:
Revenue and budget planning - The hotel industry is vulnerable to change in economic
conditions. The managers of hotel analyses economic trends. They are able to strategize for
driving high level of occupancy. The responsibility of hotel manager is not only adjusting rooms
rates and inventory but it also includes making long term strategies for budget planning and

revenue managing. The hotel management has the responsibility for optimizing revenue based
demand, overseeing the distribution strategy and managing daily operations of hotel. They have
to create pricing strategies and competition analysis. Their responsibility also includes tracking
revenue of hotel, managing budget, analyzing market segment and sales figure. The hotel
industry has an opportunity in this operation as if there will be proper management of budget and
revenue then it will be easy to manage hotel business effectively.
There is an opportunity for individuals working as budget and revenue manager to build
their skills and become financial adviser for the company. For this, several skills are required
which includes analytical thinking, financial knowledge, leading qualities, etc.
Housekeeping: It refers to the person who take care of the guest as well as provide them
information about different facilities provided by the hotel to their customers. Along with this,
there essential task is to keep the rooms and organisational premises clean and tidy. They are the
one who escorts all the customers or guest from the reception area to their respective rooms.
Housekeepers assist the guest by providing them knowledge about the facilities offered by
companies. In the present context of Intercontinental Hotel groups, housekeepers assist staff
members in order to provide them their luggage in their rooms. In addition to this, they provide
detail about the services such as dining time and area, speciality of the hotel and many more.
Apart from this, they take care about the safety, satisfaction and security of their guest (Roma
and et. al., 2019). The opportunity for this operational role is that if customers will get clean and
hygienic environment then it is easy to increase the level of customer satisfaction. This will
directly help in increasing profit and revenue of hotel.
An individual who is working in the housekeeping department has opportunity to become
manager of hospitality sector and for this he should have managing skills and leadership skills.
Front Desk Services: One of the main operational role within a hospitality industry is
there front desk service. They are the one who mainly works in guiding and providing
information about the services and facilities of a hotel. Person sitting in the front desk assist the
customers and represent the hotel. Therefore, it is very essential for them to keep the
environment healthy and interact with their customers in an effective manner. In the present
context of Intercontinental Hotel groups, front desk manager interact with each and every guest
in an effective manner. They maintain all the records and data of their customers on a regular
basis. The opportunity for hotel management while organizing this job role is that if front desk

service is effective then it is easy to attract more number of customers and clients to visit the
hotel. This will help in increasing the profitability of business. The person working at front desk
can become manager after working effectively in this field. Various skills required for this are
interpersonal skills and communication skills.
Food and Beverage Service: It refers to the most important department within a
hospitality industry. They are the one who provide food services to their customers and guest.
Along with this, some of the hotels need separate catering team, specially for their conference
rooms. In the present context of Intercontinental Hotel groups, they provide food services to
their guest on a regular basis, so that they will be able to satisfy the requirements of customers.
Along with this, they will provide room services to their guests. The main opportunity for this
job role is that if food and beverages provided to customers is of good quality then they will be
impressed by hotel. This creates a sense of positivism towards intercontinental hotel. This will
increase the satisfaction level of customers. The person working in the department of food and
beverage department has the opportunity to become manager of this department and handle all
food stock related work.
As per the above analysis, it has been identified that there are various operational roles
included within a hospitality industry (Segovia-Pérez and et. al., 2019). All the above mentioned
roles assist the industry in order to attain the goals and objectives of hotel in an effective manner.
Along with this, these roles work in coordination, so that company will be able to perform their
task effectively.
P5 Analyse the skills necessary for roles and current skills shortages within the hospitality
industry
Hospitality sector is one of the leading industry in today's competitive world. It is very
necessary for the hospitality industry to provide high quality services to there customers in order
to retain them for a long period of time. With the assistance of this, managers will be able to
provide high quality services so that they can satisfy their requirements. It is the industry which
is popularly known as service base industry or hospitality industry, where customers get high
quality services in order to satisfy their requirements (Suand Reynolds, 2019). It is the industry
which is highly diversify as they provide services which is related with food, beverages, travel,
hotels and many more. In order to perform the task in an effective manner, there are various

skills which is required. In the present context of Intercontinental Hotel groups, there are some
skills which are mentioned below:
1) Flexibility skills: It refers to the skills, which is required by each and every individual
in order to work effectively. Hospitality industry is the one which requires this skill in order to
perform their task in an effective manner. Under this industry, staff members need to have
flexible working hours. With the help of this, staff members can perform their task according to
the requirement. Therefore it is very important to have flexibility skills, so that they can adjust
themselves within the environment of the company. In the present context of Intercontinental
Hotel groups, staff members allotted working shifts according to the requirement of work (Teng,
2019).
2) Communication skills: One of the most effective skill is communication skills. It is
very important for the employees to have effective communication skill in order to transfer
information from one person to another in an effective manner. In the present context of
Intercontinental Hotel groups, managers of the company have effective communication skills.
Managers transfer required information to the guest so that they can perform their task properly.
Along with this, staff members of the company need to have this skill, so that they can inform
their guest about the services offered by them in an effective manner.
3) Multitasking abilities: It is very important for the staff members to have multitasking
skills and capabilities, so that they can perform various task at same time. In hospitality industry,
each and every employee have various task which need to be performed effectively and within
given time period (Dogru and et. al., 2019). In the present context of Intercontinental Hotel
groups, staff members of the company need to be multitasking and specialized in various tasks. It
will assist them to work various task within a given time period.
TASK 3
P6 Evaluate PESTLE analysis which will affect the development of organisations
Each and every organisation highly influenced by both internal and external factors
available at the environment. In case of external environment, managers of the company adopt
PESTLE analysis. In the present context of Intercontinental Hotel groups, managers of the
organization examine the external environment in order to gain maximum profit

(Dzhandzhugazova and. et. al., 2016). Below mention is the PESTLE analysis of Intercontinental
Hotel groups:
 Political Factors- Political factors plays very important role in order to maintain the long
term sustainability and profitability of the company at a particular marketplace. Political
factors include policies, taxes, tariffs and many more. It is very essential for
Intercontinental Hotel groups to adopt all the governmental policies and strategies in an
effective manner, so that they can perform their task in an effectively. For instance,
performance as well as efficiency of the hotel get affected by the taxation policies which
is dynamic in nature. Along with this, political instability within the country might affect
the overall working of the company.
 Economic Factors- Economic factors includes inflation rate, interest rate, saving rate and
foreign exchange rate. It is the factor which highly affects the performance of
organisation at the competitive marketplace. In the present context of Intercontinental
Hotel groups, economic factor plays very essential role. Therefore, it is very important
for the management team to provide services according the income level of individuals
within the country. For example, in case of economic factor government interventions
within the company might affect the overall performance of Intercontinental Hotel. In
addition to this, increased labor cost within the company may reduce the profit margin at
competitive marketplace.
 Social Factors- Social factors plays very essential role in the overall growth of the
company. Social factor includes taste and preferences of customers, lifestyle, beliefs as
well as culture (Goh and Jie, 2019). In the present context of Intercontinental Hotel
groups, managers of the company provide services to their customers according to the
requirements of customers. Along with this, company can hire local employees in their
hotel, as they are very well aware about the requirements of individuals living in the
country. In context of Intercontinental Hotel, one of the factor which might affect the
overall performance of the company is culture, background as well as income level of
individuals. Apart from this, demographic and geographic area might affect the
profitability of the company.
 Technological Factors- In today's competitive world, technology plays very essential
role in order to enhance the growth of company. Technology is changing fast and for

retaining the customers for a long period of time, managers need to adopt upgraded
technologies. In the present context of Intercontinental Hotel groups, management team
of the company provide advance booking services to their customers. Therefore, in order
to provide high quality services to their customers, managers adopt upgraded
technologies. In case of technological factor, high quality and upgraded technologies
might enhance the profitability of the company. Along with this, to beat the competition
Intercontinental Hotel provide online check in and check out facilities to their customers.
This as a result enhance the brand image of the company at the competitive marketplace.
 Environmental Factors- Environmental factors largely affect the profitability and brand
image of the company at the competitive marketplace (Jones and et. al., 2016). In the
present context of Intercontinental Hotel groups, managers of the company use
ecofriendly technologies in order to provide effective services to their customers. Every
organization wants to enhance its brand image at the competitive marketplace, so that
they will be able to earn more profit. For instance, Intercontinental Hotel might reduce its
profitability if their working functionality affect the whole environment in a positive
manner. If environment affect negatively it will reduce the brand image at competitive
marketplace.
 Legal Factors: It is the factor which is somehow similar to the political factors. These
factors assist in developing strong brand image at the competitive marketplace. In the
present context of Intercontinental Hotel groups, management team of the company
follow all the laws and legislation in an effective manner. With the assistance of this,
managers retain their staff members and customers for a long period of time. It is the
factor which includes discrimination law, employment law (Kandampully and et. al.,
2015). It is very important for the management team of Intercontinental Hotel to follow
all health and safety law in order to provide security to the staff members of company.
Apart from this, managers need to protect personal information and data of their
customers so that they can gain their trust and remain loyal towards them. This as a
result, enhance the overall profit margin as well as market share of the company at the
competitive marketplace.
P7 SWOT analysis of intercontinental hotel group.