Detailed Analysis of the Hospitality Industry and IHG Hotel Operations

This report provides a comprehensive overview of the hospitality industry, using IHG Hotel as a specific example. It begins with an introduction to the industry, defining its scope and highlighting the importance of customer satisfaction through diverse products and services. The main body of the report delves into the various types of businesses within the hospitality sector, including hotels, restaurants (casual, family-style, fine dining, and fast food), and bars, along with the services they offer. It then examines the operational and functional departments of a hotel, focusing on IHG's structure, including marketing, human resources, and finance departments, as well as operational departments such as housekeeping, front office, engineering, stores, food and beverage service, security, and purchasing. The report concludes by summarizing the key aspects of the hospitality industry and the operational dynamics within a major hotel chain like IHG.

Hospitality

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
P1. Different types of business within hospitality industry and diverse product and service.1
P2 Operational and functional department of hotel................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Hospitality helps to develop the relationship between the visitors and host where host
receives visitors with pleasant manner. This includes the reception and entertainment of guest
and visitors. To better understand this concept, IHG hotel is being selected. In this report there
are various types of business within hospitality industry and diverse products and services
offered by industry is being explained. A range of operational and functional department within
business is also discussed.
MAIN BODY
P1. Different types of business within hospitality industry and diverse product and service.
Hospitality Industry:
Hospitality industry is known as broad group of businesses which delivers services to
their customers. As main goal of this organization is to satisfy the needs of customers and
provide a seamless experience to them. This is unique corporation which highly depend on the
discretionary income and time. Whenever people have extra money and time than they look for
going on trip. This is service sector industry, better the service provided by the hotel more
consumer satisfaction will be there. The customers always look for better services with
affordable prices. To make unique identity in industry, IHG needs to provide some unique
products and services to customers which will help organization to standalone in business. The
scope of this industry is very wide (Jones, Hillier and Comfort, 2016). There are different types
of services which are being provided by firms that operate in the hospitality industry. These are
discussed as below:
Intangible services:
The intangible services are those which cannot be seen but these can be feel by an
individual. Hospitality industry is known for its services, employees of IHG provides fast and
better food service to the consumers and they feel satisfied with the food delivery services of
organization.
Perishable services:
Perishable services are those which do not last for longer period of time. The hotels
provide food facilities to their guest so this kind of services does not last for longer period of
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time. IHG hotel provides facility to book room throigh internet, that attracts more people towards
the brand.
Inseparable service:
Inseparable means service provider and customer can not be separated. Supplier is very
crucial to hospitality as hotel need huge amount of quantity of food and drink. Apart from this
food supplier the hotel requires supplier for basic things such as toothpaste and shampoo etc. As
service consumer is inseparable from the delivery of service because they involved in from
requesting to consuming rendered benefits. .There are various products of hotel such as: baray
swimming pool, baray poolside bar, bayon spa and bayon health club center,baby sitting service,
laptop & computer rental services etc.
Tangible services:
Tangible services are those which can be seen, touch and feel. The hotel provides various
kinds of tangible services such as payment making through card swipe. Apart from this, rooms,
banquet halls and hotel lounge come under this category (Hall and Gössling, 2013).
Types of business of industry:
Hospitality industry is broader industry which comprises of various businesses. These
sectors of industry are discussed as below:
Hotel:
Hotel is a very common but important part of hospitality industry. Hotel is a place where
accommodation is provided with several facilities such as food and beverages. There are various
product and services which are provided by the IHG, these are discussed as below:
Fitness center:
Fitness center in hotel has become very common in hotel. Business provides gym and
yoga room to their guest and visitors. The trend is becoming popular due to the people who are
fitness conscious and competitors also providing this facility also.
Indoor pool:
To attract more number of customers the hotels have started providing the indoor
swimming pool facility to their guest. As it attract more number of guests due to its privacy
features and cleanliness.
In room dining:
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In room dining provide peace and privacy to guest of IHG. As it is very popular concept
which is used by various medium and large size hotels (Kandampully, Zhang and Bilgihan,
2010).
Restaurant:
Restaurant is public place which provides food and beverages services to the people on
commercial basis. This word comes from Rest and Rent, which means people rest there and pay
rent for that. Every one can go to the restaurant who are able to pay charges for its products and
services. Although it does not provide accommodation facility to its customers for staying in day
or night. The different types of restaurant and their offerings are discussed as below:
Casual dining:
This is type of restaurant which provides the friendly and relaxing surroundings,
affordable food price and table services to customers. These kinds of restaurant have usually
large in size (Chen and Shen, 2012).
Family style:
This is basically similar to casual dine as basic difference is that family style have better
food cost menu. It caters well to families with children or groups of friends.
Fine dining:
Fine dining restaurant provide better customers services and much more attention than
casual dining. These types of restaurant have unique designs and high class interior which attract
its customers. The staff of this kind of restaurants is highly trained in order to serve better to
customers. The ambient music is being played by restaurant in background and reservation is
required for this type of restaurant.
Fast food restaurant:
This is very common and popular type of restaurant which provides the fast food like
burger, pizza and other fast food dishes to their customers. As this attract customers due to its
convenience and affordable prices. These restaurants can be stands or kiosks with no roof.
Bar:
Bar is legal place where people comes to enjoy with there friends and colleagues. The bar
are very popular now days due to its diverse offerings. As to attract the customers some bar
provides happy hour or discount of day to their customers. To entertain their customers they
offers the live music also. There are some legal restriction also like drinking age which governed
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by government. The bar offers alcoholic beverages like liquor and cocktails and apart from this it
offers snacks also.
Accommodation business
This kind of business offer accommodation to guests,their main objective is to provide
24*7 services to guests.
Catering business
This is another kind of businessthat operats in hospitality industry, It arranges catering
services such as food, etc. for consumers.
P2 Operational and functional department of hotel
IHG hotel group Plc is a British multinational hospitality company which has headquarter
in Denham, Buckinghamshire. It has about 80000 guest rooms and 5000 hotels across 100
countries. The operational department plays the operational roles and functional department play
functional role in organization (Brotherton , 2012).
Organizational Structures:
Organizational structures refer to the process of delegating and completing work in the
company. As there are two kinds of compositionone is horizontal (Flat) and other one is vertical
(Tall). IHG hotel has vertical or tall organizational structures. In tall structures there is a level of
management such as top level, middle level and lower level management. The top management
takes care about financial and strategic planning of hotel and middle level management delegate
the authority to worker (Tall Organisational Structure, 2018).
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(Source: Tall Organizational Structure, 2018)
As it can be seen from the above pictures that manager of hotel delegate authority to the
supervisor and than supervisor delegates it to the different workers from different department. As
there are different departments in the hotel and each department of hotel has been supervised by
its respective head. So that tall organizational structure has been followed in IHG hotel.
There are different functional department at IHG hotel which are discussed as below:
Marketing department:
The marketing department of hotel is responsible to marketing its product and services to
attract its customers. As this department is considered as backbone of every organization whether
it is a big or small firm. Marketing department of IHG hotel is responsible for the advertising
product and services of hotel to generate sales for organization.
Human resource department:
Human resource department is very important department of organization as it is
responsible for the recruiting right candidate at right place. The department is liable for
maintaining a healthy and positive relationship among the employees of company. To meet gap
of skill shortage, human resource department of IHG is obliged to give training and development
to their employees (Boella and Goss-Turne, 2013).
Finance:
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This is also comes under functional department of organization. The main task of finance
department of IHG is to allocate funds to various department so that they can perform their task
effectively. As marketing department need fund for the doing advertisement of product and
service of hotel. Finance department also keeps record of expenses and income of hotel during a
particular financial year in order to analyze profitability.
Operational Department:
These are the following departments are mostly considered as the operational
departments of IHG hotel. Name of these department along with their functions are described
below:
1. House Keeping Department: The housekeeping department is answerable for
administration of guest rooms and the cleanliness of all areas of the hotel. Activities of
this section includes Cleaning and up keeping of hotel rooms, Cleansing of public areas,
Laundering of guest linen, Issuing and receiving of staffs inform on clean to dirty basis,
Issuing and collecting of linens from various outlets, Cleanup of banquets, halls and other
food and beverage outlets, Placing of various VIPs amenities, etc. in the VIP guest room,
Co- ordination with the other department of the hotel, Maintenance of the gardens,
Cleanliness and maintenance of swimming pool and Implementation of pest control
activities in all areas of the hotel etc. IHG hotel always focuses to keep whole premises
clean.
2. Front office: At the time when guest is ready to departure, front office communicates
with housekeeping to make up the room ready for sale to the next guest on line. After that
housekeeping confers a ready room to the front office for sale. Housekeeping officer of
IHG hotel gives day to day room report to the front office, by using this front office
ensures the occupied rooms against any dispensaries made out. The strong coordination
between housekeeping and the front office is deemed important to ensure timely delivery
of rooms with required facilities (Bharwani and Butt, 2012).
3. Engineering: Any maintenance and repair activities is conducted by this department .
Includes activities related to all public areas, floors, and room maintenance work and
keeps a proper record of work done.
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4. Stores : This department of IHG hotel ensures the availability of day to day requirements,
such requirement of guest amenities, stationary, cleaning material and other ancillary
supplies.
5. Food and Beverage Service Division: Food and beverage department are one of the most
service based and major department of the IHG hotel. It provides the services of ready
food items, beverages, and tobacco in serviceable way to the customer as per their
requirements. The food and beverage section is most considerable department among all
other department as to retain customers and enhance service quality. Conman services
offered by this sector is to provide food and beverages, may be a coffee shop, bars,
lounges, speciality restaurants, banqueting, and room service etc.
6. Security: This division responsible for activities related to secure the privacy of all in-
house guests, the housekeeping departments contribute for a hand off security
department. Sensitive keys are also kept with the security department at IHG hotel
7. Purchase: Purchase department of IHG hotel is responsible to provide stock items like
guest supplies, stationary, cleaning equipment, tools and material required for daily
functioning. Purchase buy new uniforms, linen and upholstery are also done through
purchase department with the help of acquiring requisitions.
CONCLUSION
In the conclusion it can be said that hospitality industry is very wide and consumer
oriented industry. The industry mainly focuses on the customer satisfaction by providing quality
services. There is different businesses are performed in the industry and these businesses has
diverse products and services. The operational and functional department of hotel plays an
important role in achieving organization goals effectively and efficiently.
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REFERENCES
Books and Journal
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Boella, M. and Goss-Turner, S., 2013. Human resource management in the hospitality industry:
A guide to best practice. Routledge.
Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Chen, T. L. and Shen, C. C., 2012. Today's intern, tomorrow's practitioner?—The influence of
internship programmes on students' career development in the Hospitality Industry.
Journal of Hospitality, Leisure, Sport & Tourism Education. 11(1). pp.29-40.
Hall, C. M. and Gössling, S. eds., 2013. Sustainable culinary systems: Local foods, innovation,
and tourism & hospitality. Routledge.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
Journal of Contemporary Hospitality Management. 28(1). pp.36-67.
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.
Online
Tall Organisational Structure. 2018.[Online]. Available through:
<http://www.nwlink.com/~donclark/leadership/horizontal.html>
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