Hospitality Industry: Nature, Structure, Emerging Issues, and Trends

This report provides a comprehensive overview of the hospitality industry, examining its structure, the diverse types of businesses within it (lodging, food and beverage, travel and tourism, and entertainment), and the services they offer. It details the operational and functional departments within a hotel like HILTON, including food and beverage, rooms division, front office, housekeeping, security, engineering, store and purchase, accounting, human resources, and sales and marketing, and their contributions to local, national, and international economies. The report further explores various operational roles within the hospitality industry, highlighting the required skills and current skill shortages. It also includes PESTLE and SWOT analyses of the industry, alongside current and potential market trends. The report emphasizes the industry's impact on employment and economic growth, underscoring the importance of skills such as good service delivery, management, and communication. Finally, it addresses factors that affect the development of the industry including political, economic, social, technological, legal, and environmental influences. The report concludes by summarizing the key findings and insights into the dynamic nature of the hospitality sector.

The nature and structure of
Hospitality industry and the
emerging issues and trends

Table of Contents
The nature and structure of Hospitality industry and the emerging issues and trends.....................1
INTRODUCTION................................................................................................................................3
P1 Different types of business within the hospitality industry and the diverse products and
services they offer............................................................................................................................3
P2 Operational and functional department within HILTON-..........................................................4
P3 contribution of the hospitality industry to local , national and internation economies-.............5
P4 Different operational roles within the Hospitality industry in HILTON-...................................6
P5 skills required for roles within the hospitality industry and current skills shortages................8
P6 PESTLE analysis of hospitality industry....................................................................................9
P7 SWOT analysis of hospitality industry.......................................................................................9
P8 Current and potential market trends in hospitality industry.....................................................10
CONCLUSION...................................................................................................................................11
References........................................................................................................................................12

INTRODUCTION
Hospitality industry is business which provides different different kinds services and
facilities to the customers. hospitality industry plays a big role in the economy of every nation. This
file discusses about current structure, size of hospitality industry. Anticipated skills requirement in
the hospitality industry. Internal and external factors that impact the hospitality industry that is
political economical,social, technological, legislative and environmental factor that affect the
development of organisation operations with in the industry. and how they relates to current issues
facing the hospitality industry. And the current and potential trends and developments affecting the
hospitality industry.
P1 Different types of business within the hospitality industry and the diverse products and services
they offer
Five segments are there in which hospitality industry has sub divided-
Lodging- accommodation- accommodation is very big sector to describe in different
different ways but the lodging accommodation means people who are rich always travels they
need lodging , means all the services like sleep,rest,food etc. there are many hotels which is
providing luxurious and world class facilities there are only three thing which people expects when
they travel outside first one is accommodation second is most expensive food and third is behind
the travelling. there are main three types of accommodation services- resort, suites and lodging.
Food and beverage- it also comes in hospitality industry there are many big hotels which
are providing luxurious foods and services there are four sectors of the food service industry they
are – Restaurants, hotels, catering and fast food.
Travel and tourism- it is one of the big sector of the hospitality industry because many rich
people afford luxurious travelling they does not think about the money. People travels all over the
world for different different purpose like- business, education, holidays etc.
entertainment industry-it is also a big sector of hospitality industry. entertainment sector is one of
the broad sector now because every persons wants to be entertainment everywhere whether it is
hotel, travelling, and places of tourism.
There are some activities or entrainment like-
Sports and gaming- it is a basic requirement of every person when he travels there are
some sports and gaming activities like casino, pools,
Cruise- now a days many rich peoples are spending their vacation on yatch, and ships. Who

does not wants to spend their vacation across the blue ocean.
Night clubs- now a days people are spending their nights in the night club. every person
wants to dance on favourite song. So this is one of the activity.
Bars- who does not want to take a drinks with friends because it feels always refreshing of
mood. This is the reason why people goes to bars.
Timeshare- many people buy a hotel for different different purpose like for the celebrations
and wedding or parties.
P2 Operational and functional department within HILTON-
There are various department comes in the hotel Hilton. Generally all the departments work
together but two departments are mainly recognized. First one is operational department and the
second one is functional department.
Food and beverages- this service provided by restaurants, lounges, bars ,etc. this
department is always centre of traction. because all the visitors who visits the hotels they very fond
of food.
Rooms division- this department provides the facility of rooms in hotel HILTON.
Front office department- this department provides all the information related facilities. It is
the place of guest appearance and the first centre of attraction ho the HILTON. All the cash related
activities includes in this department.
Housekeeping department- this department maintain all the management of guests. Like all
the facilities of room services, cleanness of their rooms etc. house keeping and front office
department both are some how related to each other because both the department works under the
head of department. this department keeps all the maintenance of hotel's rooms.
Security- this department provides the surety of safety of their guests and the people who
comes from different different locations to visit any place. so the ensure about the security is an
essential part of department of security. This department takes all the responsibility of guest because
hotel HILTON is very famous hotel and all the guest who comes in hotel are very rich and big
person so hotel ensure about their life safety.
Engineering- this department works for all the electronics things or machineries. and all the
electronic or technical things like air conditions, fans , lighting. Etc.
Store and purchase- purchase department which purchases all the required things which can
be useful to hotel. It can be raw materials, food related things. This department purchases all the

required equipments which are going to be used in future.
Accounting- it is one of the most import department. Because this department will be
responsible for all the financial activities such . This department carried oit all the cash related
activities.
Human resource department-this department plays a main role in any company or hotel .
Because this department has all the rights to monitor others departments. this department maintain
all the other departments. Like recruitment, fire, training and development. HR of the hotel makes
the salary of all the workers and employees of the HILTON.
Back office/ Reservation desk- this department used for booking of rooms in hotels.
Sales and marketing department- the work of this department is attract the guests , and
make it the centre of attraction. This department helps to sells the rooms of hotel by promoting the
advertisements and by approach an individual.
Above all these are important departments of any big hotel which gives their hospitality to guests.
P3 contribution of the hospitality industry to local , national and internation economies-
This term hospitality term shows the accommodation, food and travel and tourism these all
three are the main field of area. This industry have an impact on the economy, that means an
employment which hospitality provides to the needful persons. One of the big important thing is
many people are getting benefit from this employment. For example- if some one wants to join this
industry but if he does not have any particular degree about his skill. This is all because this
industry is based on the skills of work. And second impact of hospitality on economy is upcoming
employment which are going to be come. this industry is creating many jobs in supply and delivery
industry, framing industry.
Overall the fact is the contribution of hospitality in the nation's GDP. This company comes
in one of the most paying tax. And this tax is count under the world economy. Hospitality became
an important part of the economy because every nation wants to be provides good services.
Hospitality generates income from different different ways. foreign exchange earnings, foreign
direct investment, hospitality develops diversification. Many tourist attracted by the infrastructure
of any place so hospitality builds infrastructures. And it can be helpful for the economy.

P4 Different operational roles within the Hospitality industry in HILTON-
Seven operational areas of hotel management are there-
a hotel can not run smoothly in the market if there are not right place according to their
specialisation field of area.
Executives- executives are those who who make the decisions and these people are
responsible for the front desk services, marketing and accounting.
Front desk services- all the departments are some how interconnected with each other with
the help of front desk services.
House keeping- this operational department mainly works for the cleanliness of the rooms.
Like- toiletries.
Maintenance department- this department maintain all the utilities of the hotel. And all the
needs. And it can be responsible for front office desk.
Accounting- this department gives all the reports to the executive department.
Sales and marketing department- this department makes the marketing strategies to
promote the hotel. And sales department sales the rooms or books the room on orders.
Kitchen staff- this departments takes all the responsibility of the food. Because many
people does not come to hotel with the purpose of night stand. They also expects some delicious
food.
So this were all the operational departments which are the pillars of HILTON. Because base
of every hotels are based on the departments. Departments are the key of success whether it is
hospitality industry, business world. All the functional departments co-ordinate with each other. so
over all an operational departments are integrated management system (Ryan, 2015). All the
departments are inter connected to each other.

P5 skills required for roles within the hospitality industry and current skills shortages
Skills required by employees of hospitality industry like good service delivery, making food,
manage the stock, cost control, they all include in general skills(Radojevic, Stanisic and Stanic,
2015). Other one is managerial skills like decision making power, leadership, management, product
selling skills, good communication power, willingness toward work and ready to learn new things.
Considered the talent skills and efficiency with time and work.
Shortage of skills is also a critical problem, employees has to trained in very job title
because without training the can not learn anything so there is needed to proper training and
development programme. Large hospitality industry have difficulties in recruitment process because
many of the people required technical skills, operational skills etc.
Different roles in hospitality industry - In the hospitality industry there are different roles and skills
required for their roles and shortage of skills(Radojevic, Stanisic and Stanic, 2015).
Executive chief- An executive chief sees all the main roles in the hospitality industry and en
charge of the food operations. An executive chief can be a cook, cafe manager, catering manager,
manager of kitchen, restaurant, cafe. Many of people have done other courses related to it and many
people learn these skills from entry level work. They develop their managerial skills from their
experience.
Hotel manager- The work responsibilities of a hotel manager includes managerial work,
financial work, management of staff, guest and property. Hotel manager need to have skills like-
communication skills, management skills, team development skills and motivational skills. The
person who does the courses of hotel management have least capable to run a hotel in comparison
to the experienced person who are working with the industry for many years.
Waiters- They are the person who works with the food service establishment like hotels,
restaurants, cafe, bars etc. They directly interactive with customers and they have skills like good
communication, politely way of talking, good memory to remember customers order. They have to
engaged with customers. That all Skills required in this industry and shortage of this skill because
of bad environment. Skills impact on the industry in term of productivity, profitability, product and
service quality.

P6 PESTLE analysis of hospitality industry
Factors that affect the development of organisations operating within the hospitality industry
are political, economical, social, technological, legal, environmental(Kandampully, Zhang and
Bilgihan,2015).
Political factors- This factor direct influence the hospitality industry. Industry is also effect
by government laws and policies. Various laws like employment law, tax policies, consumer
protection, health and safety law. Other side this industry helps to make sustainable environment.
One government policy can affect the industry too much.
Economical factor- Economic factors which affect hospitality industry are, inflation rate,
deflation rate, economic growth, rate of interest, tax policies etc. This industry mostly runs through
tourists and they bring big amount with them it plays big role in economic growth of the country.
Social factors- It includes many types of people with different demand and perspective. In
the hotels someone wants single room and some wants double room. Peoples with different
perspective towards food according to their religion which includes veg and non-veg. It impacts on
hotel industry because every hotel doesn't have all facilities.
Technological factors - It also impacts on the operational work of the hospitality industry.
Mainly it focuses on the tourists and they want much more facilities because they can pay any
amount for best facility. Technology reduces the work load of employees and guests prefer that
hotel. So it is the way to achieve satisfaction of customer.
Environmental factors- Hotel industry is mostly not affected by this factor, it is only
affected in case of flood, heavy rain, storm and other accidental case. They have to take proper
treatment for this kind of situations, this can help the industry to decrease the problems. They have
to teach the employees that how can get rid of this type of difficulties.
Legal factor - Many of the laws which followed by the hotels like- health and safety law,
age law. The people only want to go to that hotel which is legal and forms all legislation acts. Safety
is the priority for the customers. it impacts on the image of hotel industry. It is possible that external
factors will affect the hotel industry.
P7 SWOT analysis of hospitality industry
It is the overview of strength, weakness, opportunities and threats of hospitality industry.
Strength- Strength of hospitality industry is that people will never stop travelling and eating.
It is more good for the hotels with historical places because of tourism. It provides job opportunities

for the unemployed persons. Hotel industry is global industry and they contribute
more in economic growth and development of country. It is flexible to make changes in itself in
few situations.(Kandampully, Zhang and Bilgihan,2015)This industry is very close to the customers
and customers is big strength for any industry.
Weakness- Mostly hotels are depended on the tourists and high profile people, dependency
on the seasons because more of people prefer to tourism regarding season. Profit margin is low due
to the government enter-fare regarding taxes. Employees who working for the industry are least
educated with low level of skills. Hotel industry included in low level of educational sector. Start-
ups and newly entrepreneurs in hotel industry faces with failure of business.
Opportunities- Opportunities of this sector will never go down because of a big tourism
sector and nowadays ageing people move towards this industry. Hotel industry also make
opportunity for the women's because of cooking ability which take a little time to make food it is
good for both of them.
Threats- Big threat is lack of skilled person, overall persons who are working with the hotel
industry are less educated and it makes poor to the sector. For this industry, think of people is that it
is worthless to invest on food. Threat of terrorism and political review.
Swot analysis give better understanding about the industry and it helps in decision making because
through swot understanding power going to increase and it contributes in decision making. It is
useful for brainstorming and strategic planning in decision making process. It helps to growing in
business. It is the overall review of industry as well as an individual so it takes decisions to
understand the employees.
P8 Current and potential market trends in hospitality industry
Technology explosion- Travellers who are comfortable to use technology, they normally
booked their hotel rooms and meal. The customers who came here for the conferences and
meetings, they want their hotel fully loaded with technology(Kim and Knutson, 2015).
International visitors- It is in trend that people wants to go to other countries and hotels
provide best to them also in the other countries due to technology. Hotels provide more services in
multiple of languages and countries because they have tie ups with them. for example tourists who
comes from other country then employees of Hotel Hilton can provide them the best facilities like
communication in their language, make food of their country etc. It attracts tourist toward hotel.

Different role of staff- It includes that staff of Hilton Hotel can provide facilities in form of
robot. Some tourist likes that they provided food by robot in comparison to human being. Through
this the staff move to the other works and manage other priorities. it can help the hotel.
Destination promotion- Some visitors who has visited the Hotel Hilton are more friendly
with social media and they put pictures on social media so hotel is indirectly promoted. Some of
them even using the material from the hotel page and its good for hotel. It is in trend.
Damage control- The visitors who are not satisfied with the services of the hotel have
directly visit the social sites to perform their reviews and they are more comfortable with it.
Hilton hotel can engaged with the customers to know about their need that what they want from
their satisfaction and make positive relations for future booking.
Health trend- It is in emerging trend that people are demanded for fitness centres, health
facilities, spa facilities, They expect well managed hotel system.
Hotel Hilton can gives this facility to the visitors and make them attract towards their hotel. because
people loves more of alternative options like this.
Customer relationship management- CRM helps in reducing work time and problems. it
reduces the work load so they can easily maintain relationship with customers and switch their
efforts toward them. Hotel Hilton can try CRM to make good relations with customer and make
customer more friendly.
CONCLUSION
From the above study it has been summarised that skills were required for the many job
roles in hospitality industry and different type of business in hospitality industry. Hospitality
industry made their contribution in economic development and growth. This file has done PESTLE
analysis of hospitality industry in which covered that how this effect the industry. File has done the
swot analysis of the industry and how it impacts on decision making process. This file talked about
that what are the new trends in the hospitality industry.

References
Books and journals
(Ryan, C., 2015) Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management.27(3).pp.340-361.
Li, G., Law, R., Vu, H.Q., Rong, J. and Zhao, X.R., 2015. Identifying emerging hotel preferences
using Emerging Pattern Mining technique. Tourism management.46. pp.311-321.
Ladkin, A. and Buhalis, D., 2016. Online and social media recruitment: Hospitality employer and
prospective employee considerations. International Journal of Contemporary Hospitality
Management.28(2).pp.327-345.
Baum, and et.al., 2016. Tourism workforce research: A review, taxonomy and agenda. Annals of
Tourism Research.60. pp.1-22.
Hsu, C.H., Xiao, H. and Chen, N., 2017. Hospitality and tourism education research from 2005 to
2014: “Is the past a prologue to the future?”. International Journal of Contemporary
Hospitality Management 29(1)pp.141-160.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that influence
customer satisfaction in the contemporary hospitality industry.Tourism
Management.51.pp.13-21.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future directions
with a special focus on the hospitality industry. International Journal of Contemporary
Hospitality Management.27(3). pp.379-414.
Kim, M., Vogt, C.A. and Knutson, B.J., 2015. Relationships among customer satisfaction, delight,
and loyalty in the hospitality industry.Journal of Hospitality & Tourism Research.39(2).
pp.170-197.
Wan, Y.K.P., Wong, I.A. and Kong, W.H., 2014. Student career prospect and industry commitment:
The roles of industry attitude, perceived social status, and salary expectations. Tourism
Management.40.pp.1-14.
Hallak, R. and et.al., 2018. Firm performance in the upscale restaurant sector: The effects of
resilience, creative self-efficacy, innovation and industry experience. Journal of Retailing
and Consumer Services.40.pp.229-240.