Hospitality Industry: Economic Contribution, Operations & Franchising

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on its economic impact and operational functions. It examines various types of businesses within the sector, including accommodation, food and beverage, resorts, entertainment, and travel & tourism. The report explores operational departments such as front office, housekeeping, and executive departments, alongside functional departments like sales & marketing, accounting, human resources, security, and food production. The interrelationship between these departments, particularly marketing and front office, is highlighted. Furthermore, it assesses the contribution of the hospitality industry to local, national, and international economies, with specific reference to the UK. The influence of franchising and licensing agreements on the global development of the hospitality industry is also discussed. The report also outlines a range of operational roles, such as division managers, front office managers, and housekeeping staff, and the skills required for these roles, including negotiation, communication, and leadership. It concludes by emphasizing the importance of addressing skill gaps through effective training and management strategies. The report makes specific reference to Ritz London as an example.

Contemporary
hospitality industry
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Table of Contents
Introduction......................................................................................................................................3
Different types of business within the hospitality sector........................................................3
Examine a range of operational and functional departments.................................................4
Interrelationship between various operational and functional departments:..........................5
Contribution of hospitality to local, national and international economies............................6
Use of franchising and licensing agreements has influence the global development of
hospitality industry.................................................................................................................6
Range of different operational roles in the hospitality industry.............................................7
Skills required being part of hospitality industry:..................................................................8
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10
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Introduction
Hospitality industry across UK is changing very fast for this purpose there is requirement to
analyse the different external factors that are causing an impact on this sector. It includes various
services like event planning, travelling, accommodation, tourism and transportation. Present
report is based on analysing the different associated factors in the hospitality sector and
examining a range of operational and functional departments (Filimonau and Brown, 2018).
There is an analysis of the contribution made by hospitality industry to local, National and
international economics. Apart from this there is an analysis of the different range of diverse
operational rules and for the examination of the skill set a required for rules in the hospitality
industry. Ritz London is a five star hotel located in Piccadilly London. It is a symbol of luxury
and high society it is one of the worlds most prestigious and well-known hospitality brands.
Different types of business within the hospitality sector
Hospitality industry includes broad group of different service sector that include lodging food
and drink event planning etc. The sector also includes various bars, hotels and restaurants.
Different types of business that are part of hospitality industry are mentioned below.
Accommodation: It is a sector that includes abundant resorts, campgrounds and luxurious hotels.
It ranges from breakfast enterprises bed and other facilities that are offering lodging services.
Food and beverage: It is one of the essential business industries that range from restaurants &
catering establishment in connecting. There are different types of trade that are operating in the
sector that includes catering services quick service establishments and full service restaurants.
There are some services different food services are offered that includes fast food items various
occasions’ specialised services etc.
Resorts: There a different types of amenities that include entertainment and recreational
facilities. Resorts are the commercial establishments that are operated by single organisations it
includes offering of various services like entertainment food drinks shopping and sports.
Suites: Hotels are offering various suites that are part of upscale accommodations. It generally
includes well-known brands like intercontinental, premier inn, hotel, Hyatt hotel and four
seasons.
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Entertainment: It is very crucial for hospitality sector to have proper entertainment facilities. In
terms of entertainment it includes sports, gaming, cruise night clubs pubs. The main objective is
to offer a better drive and effective customer experience.
Travel and tourism: Large business industry includes several players that are cruise ships,
airlines and other crew members. The main objective of this service is related with people
moving from one location to another. Hospitality sector cannot develop without having proper
measures of tourism and travelling.
Examine a range of operational and functional departments
In every business venture there are several purposeful departments that are contributing in
effective functioning.
Operations departments:
Front office: It is one of the most visible departments that are also regarded as reception desk.
This division is responsible to deal with the guest at initial stages (Leung, Wen, and Jiang, 2018).
It consists of information like front office, cashier registration requirements, credit handling
responsible for cash handling room bookings and other services.
Housekeeping department: This division is accountable for managing the guestrooms and
cleanliness for public areas of hotel. In Ritz London housekeeping department has to ensure high
amount of cleanliness to reduce the chances of customer complaint.
Executive department: It includes executives who are responsible for managing different areas
that are related to Marketing services, accounting services and front desk services. All these
services are specifically managed by each functional department and it includes various
executive who are particularly responsible in performing the specified operations.
Maintained department:: It includes ensuring that there are standardized services that are
offered to customers. In present times because of high amount of competition it becomes very
important to have executive in Ritz London who is able to perform all the various responsibilities
as per specific standards.
Functional departments:
Sales & marketing: This division is responsible for generation of new businesses in hotel. It
includes various functions like sales room conventions and focuses on advertisement for the
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target customers. Ritz London is focusing on latest marketing and promotional technology like
digital marketing for the purpose of promoting their brand
Accounting department: It includes organisation to monitor all the different activities that are
related to financial resources. In Ritz London, it includes cash receipts, banking, operational
information, payroll processing, preparing internal reports and auditing.
Human resource department: This department is mainly responsible for hiring, developing,
training and firing of staff in the organisation. In this function human resource department has to
handle all the practices that are associated with managing the overall workforce.
Security department: It the department that is responsible for ensuring security and safety of
total visitors and all the work force.
Food production department: It is the department which is responsible for ensuring that there is
proper address to food safety and regulation act. In this it is ensured that all the specific
legislations related to food safety are properly employed and adopted by the management in Ritz
London.
Interrelationship between various operational and functional departments:
Marketing department: The Marketing department of Ritz London has to execute various
numbers of tasks that includes making research of new products or services that have to be
launched in the course of business (Kandampully, Zhang and Jaakkola, 2018). There is a direct
interrelationship between operational and functional departments.
Front office and Marketing department: Both of the department have to establish coordination
to analyse the customer complaints and their changing preferences. Based on this information
provided by front office managers various promotion campaigns are to be formulated with
respect to specific demands of customers.
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Contribution of hospitality to local, national and international economies
The overall impact of hospitality industry on the global economy is important it has led to
creation of 266 million jobs and the contribution of 19.5% of GDP across globe.
International level: In countries like South Africa, Egypt, Nigeria there is a continuous
economic growth that is creating a demand for institutional investors to analyse the expansion
across regions for future growth (Madera and et.al., 2017).
Global: At the global level there is generation of moral state opportunities and contribution by
different foreign investors. There has been 11% of contribution that is US dollar 355 billion in
hospitality industry.
Local: At the local level, expertise has absolutely transformed the way hospitality industry is
functioning. In Ritz London, being part of the hospitality sector there is use of digital platforms
which has transformed the way in which customers perceive various functions.
Hospitality industry has contributed 59.3 billion pounds as a gross value added to the economy
of UK and 3.0 % of the total UK economy productivity. In the time period from 3 months to
September 2020 there are 2.38 million jobs in the hospitality sector across UK that is
representing 6.9 % of the total UK employment. There were 223, 045 hospitality business in UK
as per data of January 2020. 3.7 percent of all UK business. In this 137,226 Employees who are
representing 10 percent of UK total.
The present covid-19 situations have also affected the hospitality industry as one of the greatest
hit sectors. There are some of the restrictions on travelling that has affected the hospitality
turnover in the present scenario. There are also accumulation of debt and ongoing fix cause that
have affected the situation in terms of lower revenues and cash reserves as a major concern for
the sector. Economic productivity in the hospitality sector has been down by 90% in April 2020
as compare to February 2020. It this situation has automatically lead to a negative impact on the
growth of economy across countries (Hospitality industry in the UK, 2021).
Use of franchising and licensing agreements has influence the global development of hospitality
industry
Franchising: It is aspect that has grown significantly in the hospitality sector for various hotels
and restaurants. Different hospitality brands like Hyatt hotel, Hilton, Ritz London, Holiday inn
are example that are with franchising for the purpose of global development.
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Contribution to national and international economies: Franchising is following National gross
domestic product of many countries during development of million dollars in stipulations of
services in the country (Sarwar. and Muhammad, 2020). Local economy is benefitted in terms of
taxation franchise jobs and higher community involvement.
Licensing: There a number of regulations that are required for the purpose of starting a business
licensing are one such compulsory requirement. In hospitality industry licensing has contributed
towards more Innovation and employment opportunities across United Kingdom.
Contribution to international and national economies: GDP contribution in the present
situation of covid-19 has resulted into a slow development. In 2016 also because of brexit
referendum there was a decline in the overall state of economy.
Range of different operational roles in the hospitality industry
There are definite operational role at a division of hospitality industry to be performed by human
resource managers as per requirement of functional departments as mentioned below:
Role of division managers: In Ritz London, division managers have to execute the function
related to front areas. There is a requirement to have time the statement so that guest can be
served as per basic requirements (Alexakis and Jiang, 2019). Managers have to maintain the
accountability roles and handling different functions like stuffing, budgeting and purchasing
Role of front office manager: In this aspect managers are selected various function that are
related to keeping updated with the in sequence coordination with guests, keeping a track record
of arrival & further key tasks of front office manager includes training and supervision of other
front office staff members.
Roles of housekeeping: In Ritz London, the maintenance workforce are to perform the function
of cleaning of rooms, supervising room attendees, checking of rooms, wiring facilities, providing
employee training and to perform the function of housekeeping in order to ensure proper sharing
of roles and responsibilities.
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Skills required being part of hospitality industry:
There are some of the definite functions that are necessary to execute the function that are assign
in the purpose of performing respective responsibilities and rules in the context of hospitality
industry.
Operations manager: There are certain specific roles that are to be performed by operations
manager including improving the performance procurement of resources and other strategies
(Baum, 2019). It requires various skills sets for which a leader has to manage and lead the teams.
Negotiation skills: These skills are very important to ensure that there is most favourable
utilisation of available resources in the organisation. In Ritz London, operational managers have
to carry out the function of analysing the exterior as well as internal environment to anticipate
the customer needs and for the formulate strategies.
Housekeeping manager: Housekeeping managers have to perform the function of supervising
room attendants, clearing function,, checking of rooms as per specific standard. They have to
also perform the function of stalking ordering of cleaning equipments, checking of damages
room and linen suppliers for its performing routine maintenance work.
Specific skills sets: Effective communication skill is very important for the purpose of
housekeeping managers (Liu and et.al., 2017). In Ritz London, they also require having effective
leadership skills so that they are able to manage the staff and other team members. This activity
is associated with overseeing staff performance on a daily basis and monitoring their
performance.
Skill gaps: In some situations skill gap can also arise in the hospitality industry. For dealing with
the skill get there is requirement of effective techniques of production, budget management,
logistics management, project management and human resource management. In operations
management skills are required to have proper job role diversification in other functional
departments.
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Conclusion
It is concluded from the above aspects hospitality industry is assuming a very fast change in this
changing environment. There is need to analyse different associated functions that are part of
hospitality industry and the contributing towards overall economic development across countries.
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REFERENCES
Books & Journal
Filimonau, V. and Brown, L., 2018. ‘Last hospitality’as an overlooked dimension in
contemporary hospitality theory and practice. International Journal of Hospitality
Management, 74, pp.67-74.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
Madera and et.al., 2017. Strategic human resources management research in hospitality and
tourism: A review of current literature and suggestions for the future. International journal
of contemporary hospitality management.
Sarwar, A. and Muhammad, L., 2020. Impact of organizational mistreatment on employee
performance in the hotel industry. International Journal of Contemporary Hospitality
Management.
Alexakis, G. and Jiang, L., 2019. Industry competencies and the optimal hospitality management
curriculum: An empirical study. Journal of Hospitality & Tourism Education, 31(4),
pp.210-220.
Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal of
Contemporary Hospitality Management.
Liu and et.al., 2017. Applying consumer-based brand equity in luxury hotel branding. Journal of
Business Research, 81, pp.192-202.
Online
Hospitality industry in the UK, 2021 [online], Available
through<https://commonslibrary.parliament.uk/research-briefings/cbp-9111/>
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