The Contemporary Hospitality Industry (Unit 1) Report Analysis

This report provides a detailed analysis of the contemporary hospitality industry, focusing on The Belmond Cadogan Hotel. It explores different types of businesses, operational and functional departments, and the industry's contribution to local, national, and international economies. The report examines operational roles, required skills, and skills shortages within the industry. It further assesses external environmental factors, conducts a SWOT analysis, and evaluates the impact of current and potential trends. The analysis includes franchising and licensing agreements, their influence on global development, and the implications of skills gaps. The report concludes with an evaluation of the ability of hospitality businesses to meet objectives and addresses the impact of external factors on trends and development.

The Contemporary Hospitality
Industry (Unit 1)

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Explore different types of business within hospitality industry and diverse products and services
they offer.................................................................................................................................................3
P2 Examine a range of operational and functional department within chosen hospitality business.........4
P3 Discuss contribution of hospitality industry to local, national and international economics...............5
M1 Review interrelationship of operational and functional units within hospitality business.................6
M2 Analyze how the use of franchising and licensing agreements has influenced global development of
hospitality industry..................................................................................................................................7
D1 Analyse how global growth, franchising and licensing developments have contributed to the
economic worth of the hospitality industry..............................................................................................7
Task 2..........................................................................................................................................................7
P4 Different operational roles within the hospitality industry.................................................................7
P5 Skills required for roles within the hospitality industry and current skills shortages..........................8
M3 Review the skills gaps within the hospitality industry in relation to a range of different operational
roles.........................................................................................................................................................9
D2 Analyse the impact that skills gaps have on hospitality businesses and make valid solutions for
addressing these skills gaps.....................................................................................................................9
TASK 3.....................................................................................................................................................10
P6 Assess external environmental factor that affect development of organisation operating within
hospitality industry................................................................................................................................10
P7 SWOT analysis of hospitality business and review how this inform decision making process.........11
M4 Evaluate impact of external factor on development of organisational operating within hospitality
industry..................................................................................................................................................12
TASK 4.....................................................................................................................................................13
P8 Appraise implication of current and potential trends in hospitality industry :..................................13
M5 Evaluate ability of hospitality business to develop products and services to meet business
objectives...............................................................................................................................................14
D3 Critical evaluate external factors impact on current and potential trends and development in
hospitality industry;...............................................................................................................................14
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................16

INTRODUCTION
Hospitality industry is one of the most flourishing sectors within corporate world in
current period of time. This industry mainly works for fulfilling the needs and wants of
customers in such a manner so that huge base of customers is retained with the organisation. To
complete this project hospitality organisation is to be taken that is The Belmond Cadogan Hotel,
London. It is a luxury hotel opened in 1887 on the street midway between Knightsbridge and
Chelsea (Belmond Cadogan Hotel, 2021). This report is based on three parts in which first part
represent several types of business and diverse offering under hospitality industry. Further it
explains operation all and functional department along with contribution of hospitality industry
within national, global and domestic economic. In second part it elaborates operations roles
includes several required skills that are needed within hospitality industry. In case of part three
evacuation of external and internal factor is to be done with the usage of potential and current
trends within hospitality organisation.
TASK 1
P1 Explore different types of business within hospitality industry and diverse products
and services they offer
Hospitality industry is composed of wide variety of businesses who mainly focus on
diversifying the customer satisfaction to their optimum level and ensures that they meet leisure
needs effectively. This industry involves several types of business who offer diverse range of
products and services to customers (Olya, Bagheri and Tümer, 2019). These firms are food and
beverage industry, travel and tourism industry, Hotels, restaurants, pubs, bars and night clubs etc.
Various types of business in hospitality industry along with diverse range of products and
services are presented below:
 Accommodations in hospitality industry- This is core in hospitality industry where
they provide services of lodging to people. In simple terms this entity offers services to
guest to rest over one or two nights in resorts and hotels. This sector further bifurcate
themselves into several groups of hotels such as fancy, youth hotels, elder hotels etc. for

instance- Belmond Cadogan offer accommodation service to their guest where they stay
for one or more than one night to enjoy the place properly.
 Travel and Tourism- This business sector within hospitality industry provide services
to customer related to mobbing people from one destination to another by using several
ways such as train, plane, cabs etc. it develops an integral part of travel sector. In this
leisure travel allow their customers to spend for food and several recreational services to
make successful trip (Bogicevic and et. al., 2018). In this business travel mainly adopts
accommodation services. The major aim of this business sector in hospitality industry is
to motivate tourist to make travel for meeting to specific objective and gain profitable
results.
 Food and beverage industry- It is one of the largest segment within hospitality
industry. This industry fulfills to deliver meals to customers within UK. This sector
mainly comprise of establishments that are engaged to prepare snacks and several other
beverages for immediate consumption. In this restaurant and hotels mainly offers foods
and beverage services to customers so that guest experience high quality services and
firm will attain profitable results. For example- Belmond Cadogan offer food and
beverage service to customers by satisfying all their needs to offer quality helps in long
term sustainability with high profitable results.
P2 Examine a range of operational and functional department within chosen hospitality
business
In case of hotel industry activities are run smoothly to make correct usage of resources
and people within particular department. In case of Belmond Cadogan Hotel, London several
range of operational and functional department is presented below:
The range of operational department under Belmond Cadogan Hotel, London is discussed
below:
 Housekeeping department- This department is mainly responsible for maintenance,
aesthetic keeping rooms, cleanliness, and back areas, surroundings in hotel and for
perfect care to keep all guest rooms satisfied (Operational and functional departments
within a hospitality business, 2025). In case of Belmond Cadogan Hotel, London this
operational department keep an eye on offering best quality housekeeping services by

getting proper training and development session so that more customers are attracted
towards it.
 Front office department –This department executes several functions such as reception,
registration, reservation, bill settlement of clients etc. This department is presented as a
nerve center of hotel. In case of Belmond Cadogan Hotel, London the front office staff
member work for welcome their guest, give them the room keys, offer answer related to
activities in hotel, carry luggage and finally help visitors in check them out. It is essential
operational department in hotel to enhance guest visibility and retain them for more
period of time.
 Maintenance department- This operational department in Belmond Cadogan Hotel,
London is responsible for maintaining the plant and equipment, boiling and water
heating, sewage treatment, external and common area lighting. Etc. In this manager
highly looks for fixing equipment’s and machinery so that workers are performing their
activities proficiently to satisfy guest.
Several range of functional departments within Belmond Cadogan Hotel, London are presented
below:
 Marketing department- This department within Belmond Cadogan Hotel, London
focus on satisfying the demands of customers in profitable manner. This department
carries several types of task to attract and retain guest for longer time. Therefore, this
department is focus on doing research to recognize guest preferences and taste so that
new services are easily develops by carrying out advertising prominently. This play a
crucial role in gaining profitable results within marketplace.
 Accounting and finance department- It is essential functional department within the
Belmond Cadogan Hotel, London as this department is function for controlling cost and
credit, dealing with tax issues, budgetary and budgeting control, ensuring compliance
with the usage of legal laws etc. to attain the targets on time and attracting guest by
maintaining the accounting and finance properly and appropriately (Dogonyaro, 2021).

P3 Discuss contribution of hospitality industry to local, national and international
economics
Hospitality industry is enhancing majorly in the present year that helps in generating
more profitable results within marketplace. Therefore hospitality industry highly contributes to
local, national and international economics in terms of several factors due to which it will sustain
for a longer period of time in marketplace. In UK hospitality industry is flourishing rapidly that
represent local, national and global contribution below:
In terms of local level hospitality industry offer high job opportunity to the people in
several operation department activities as per individual ability and capability to perform task.
This sector highly offers millions of employment opportunity. Therefore this department
provides 239000 jobs by 2020 so that their overall living standard is to be enhanced. It is fifth
largest sector in UK that is beneficial for local people to develop their purchasing power by
getting suitable jobs (OXFORD ECONOMICS, 2021).
In terms of national level hospitality sector contributes to offer more profitable results by
satisfying the demands of customers so that they offer remarkable services for generating more
profitable results. This will lead to the enhancement of per capita income in the nation and
develop sustainable living standards within national level due to which growth of national
economy is done proficiently. This sector includes such as travelling, shopping, sight -seeing etc.
Hospitality sector contributes to international economic because they are working on
global level towards the development of UK economy. This industry works on international level
in terms of licensing and franchising manner that represent high growth and welfare of economy
(Taheri, Hosany and Altinay, 2019). Hospitality industry contributes highly using two factors
like licensing and franchising that develops growth of globalization along with boost the overall
economy within global marketplace.
M1 Review interrelationship of operational and functional units within hospitality
business
From above information it is to be review that within hospitality sector interrelationship
between operational and functional department is very essential to gain profitable result within
marketplace. In this housekeeping department, maintenance and front office department are
working by getting proper budget from finance department and gain the knowledge from market

regarding customers taking the help of marketing department. Both these functional department
are interlinked with operational department so that all activities are done correctly.
M2 Analyze how the use of franchising and licensing agreements has influenced global
development of hospitality industry
From above report it is to be concluded that the use of franchising and licensing
agreement is highly influenced global development within hospitality industry because these
types of agreements are not negotiable that helps in developing business on international level
and attain high profitable results within marketplace. These two aspects enhance business
operation on global level that grows the development of hospitality industry within marketplace.
D1 Analyse how global growth, franchising and licensing developments have contributed
to the economic worth of the hospitality industry
It is to be analyzed that global growth, licensing and franchising development highly
indulged within the economy of hospitality industry. This is so because due to this hospitality
sector generate more revenues and offer employment opportunities to people so that overall
GOD is to be increased that impacts on growing global activities effectively. Licensing create
more primed areas that develops profitable results in future perspective during the recession time
also. It also helps in enhancing brand image and worthy to hospitality industry for their long term
survival.
Task 2
P4 Different operational roles within the hospitality industry
In hospitality industry there are several types of operational roles that helps in attracting
and retain customers along with satisfying their needs and wants for generate high profitable
results. In case of hospitality industry various operational roles are presented below:
 Concierge- It is primary operational role in hospitality industry as concierge interacts
mainly with visitors to provide information regarding several services and focus on
examine their needs to offer quality services so that more profitable results are enjoyed
by firm. This role is very crucial to understand customers’ needs so that more revenues
are generated by company. For instance- In operational department of Belmond Cadogan
this role is very prominent because in hospitality industry interaction with customer is

very essential to understand their needs and preferences so that they will sustain more
time period.
 Housekeeper- It is another essential operational role within hospitality sector as they
perform the role of maintaining cleaning standard throughout hotel or restaurants etc.
they are responsible for cleaning individual guest rooms along with common area at place
(Kotler and. et. al., 2017). Therefore in hospitality industry housekeeper role is making
beds, clean bedrooms or bathrooms, stock linen etc. this role helps business enterprise to
gain successful results within marketplace.
 Front desk role- It is another essential operational role in hospitality sector where
customers are firstly interact. In this manager is mainly responsible for devising and
holding booking and also helps visitors to resolve issues and helps in booking and
reservations. For example- In Belmond, Cadogan hotel, London this operational role is
very useful to make first positive impression on guest so that they are attract and retain
for longer time period.
P5 Skills required for roles within the hospitality industry and current skills shortages
In hospitality industry there are several skills which are needed to perform operation
function so that high profitable result is attained on time. Several skills are presented below:
 Communication skill- It is essential skill within hospitality industry as to communicate
with clients, customers to build relationship in positive manner and retain guest within
business entity.
 Accuracy skill- This is crucial to have an accurate knowledge regarding accounting
department. It is significant to work with proper concentration so that real market
position is to be easily understood by stakeholders that help in retain them loyal for more
period of time.
 Time management skill- This skill is very effective to complete the work on time frame
so that all customers are satisfied with the working and services that firm offers to their
customers.
 Cooking skill- It is essential to have an knowledge about good cooking skills and
hygiene to sustain in hospitality industry along with attracting number of customers
prominently (García-Villaverde and. et. al., 2017).

M3 Review the skills gaps within the hospitality industry in relation to a range of
different operational roles
From above mentioned skills various skill gap are reviewed in hospitality industry to a
range of different operational roles that are presented below:
 There is high shortage of skill about computer and technical skill that is crucial to
accomplish the work properly and efficiently. The shortage of this skill reduces the
efficiency of workers at the time of working.
 There is a high need of digital marketing as per current environment so that work of and
employees are done easier but due to digital marketing skill it will create blockages in the
growth of hospitality business.
 There is high shortage of lack of innovation so it is essential to have innovating skills so
that each and every customers are satisfy to work properly and proficiently.
D2 Analyse the impact that skills gaps have on hospitality businesses and make valid
solutions for addressing these skills gaps
From analyzing above skills gaps within hospitality sector there are several solutions so
that these skills gaps are filled properly and Hospitality Company will attain high profitable
results.
 Offer proper training to employees so that their overall skills are getting enhanced and
improved.
 To overcome the gap of innovation skill hospitality industry hire those candidate who are
highly able to think calmly so that latest trends are to be examined easily that should help
in dealing with guest.
 In this organize development and training session to workers to the latest of software
equipment’s and for this regular test are to be done on regular basis.

TASK 3
P6 Assess external environmental factor that affect development of organisation
operating within hospitality industry
PESTLE analysis it an effective framework that is useful to examine the external
environment impact on the business. In case of hospitality industry this framework is very useful
as it helps in gaining profitable results within marketplace. This analysis is shown below:
 Political factor- This factor includes those policies which are formulated by government
of UK and shows their impact on business industry. In terms of hospitality industry
government of UK is highly supportive to them. It is done so because hospitality industry
is one of the best sources of generating revenues. As government of UK charges high tax
on hotels, restaurants due to this economy of country is enhanced. High tax rate create
challenge for generating high profits so that they pay taxes appropriately.
 Economic factor- It involves several factors such as inflation rate, exchange rate etc. In
UK economic condition is good that develops the growth of several organizations within
hospitality industry and helps in sustaining for a longer period of time (Rabiul and et. al.,
2021). For instance The Belmond Cadogan Hotel, London generates more profitable
results by getting number of guest and it is possible due to stable economic condition in
UK.
 Social factor- This factor includes values, perception, norms, purchase behavior of
customer etc.In case of hospitality industry people of UK are highly fond towards to
enjoy remarkable services at destination. This industry is work for satisfying the needs
and preferences of customers due to which high buying behavior is attracted towards this
industry and due to this organisation involved within this sector is grow. For instance-
The Belmond Cadogan Hotel, London attracts number of customers by their quality
services that help in gaining profitable results within marketplace.
 Technological factor- It is one of the core factor for the success of every business
enterprise. Therefore usage of advanced technology is necessary within hospitality sector
to provide services to customers because if gaining more profitable results along with
sustaining in marketplace. For instance- In case of Belmond Cadogan Hotel, London
using technology in offering services to customers helps in retain them more time period
due to this hospitality sector is developed to high extent.

 Legal factor- This factor demonstrate laws and regulations which are imposed by
government for the welfare of employees and customers. In context of hospitality
industry, organizations mainly focus on health and safety of employees and customers so
that more potential customers are attracts and employees are working in proper manner.
For example- The Belmond Cadogan hotel, London manager ensures that employees are
getting equal pay as per their ability so that they work for providing effective services to
customers which are grateful to attain profitable results in business industry.
 Environmental factor- It is very essential for every business industry to take care of
environment and adopts the use of those resources that does not harm the environment. In
terms of hospitality industry, organizations are very conscious to use resources which are
beneficial for environment that helps in creating positive image within market and in the
eyes of customers (Chakaipa and et. al., 2021). For instance- In case of The Belmond
Cadogan Hotel, London they highly emphasis on environment factor by offering
environmental friendly services to customers so that large base of customers are attracted
and develops the market position growth.
P7 SWOT analysis of hospitality business and review how this inform decision making
process
SWOT analysis is very crucial factor that helps in assessing internal factor of
organisation. This analysis helps business enterprise to make proper decision that helps in firm
long term survival within marketplace. This analysis helps in recognizing the strength, weakness,
opportunities and threats that are presented below:
Strength Weaknesses
 The major strength of The Belmond
Cadogan Hotel, London is their strong
market position within hospitality sector
in UK due to this they enjoy huge base
of guest for longer time period.
 This hotel mainly emphasis on doing
innovation to attract large base of
customers within smaller period of time.
 The major weakness of The Belmond
Cadogan Hotel, London is that it has
limited presence in global market due to
which their competitors are gaining more
advantage as compare to this hotel.
 As towards hospitality sector customers
are attracted on seasonal basis that is one
of the major weaknesses for The

Belmond Cadogan Hotel, London.
Opportunities Threats
 High shift in consumer behavior towards
services in hospitality industry creates
more opportunity for The Belmond
Cadogan Hotel, London. This helps in
gaining more profitable results within
market.
 Focusing on latest technology helps
organisation to grow and develop market
by attracting number of customers.
 The major threat that company face is
the huge number of competitors is
present within marketplace that also
offers similar services to customers.
 Changes in culture are also another
threat for The Belmond Cadogan Hotel,
London (Narayanan, 2017).
M4 Evaluate impact of external factor on development of organisational operating within
hospitality industry
From above analysis it is to be evaluated that the impact of PESTLE analysis on the
development of organization operating in hospitality industry is highly that are to easily
understand using several points that are presented below:
 It is to be analyzed that The Belmond Cadogan Hotel, London highly emphasis on
adopting rules and regulations that are imposed by UK government as it helps in getting
the positive support of government so that more beneficial results are enjoyed in the
business marketplace. This also helps in taking decision effectively for attaining long
term survival.
 Therefore the hotel offer essential services to their involving stakeholders so that they
focus on gaining profitable results and this will contribute in enhancing economy of the
nation effectively and efficiently.
 Further the hotel provide authentic services to customers in relation to health, safety,
hygiene etc. and fulfill all their needs and wants that helps in gaining profitable results
within the marketplace and also attracts buying behavior of customers in positive manner.
 In this The Belmond Cadogan Hotel, London provide the services like WiFI along with
using various technological equipment’s to offer prominent services that enhance
satisfaction level of customers within marketplace.