The Contemporary Hospitality Industry: An Overview

This presentation offers a comprehensive overview of the contemporary hospitality industry, delving into its various operational and functional units, such as front office, food and beverage, marketing, and HR departments. It examines the diverse types of businesses within the industry, including accommodation, food and beverage, and entertainment, highlighting their roles in attracting customers and improving economic conditions. The presentation further explores the industry's significant contribution to local, national, and international economies through increased employment and revenue generation. It analyzes the interrelationship of functional units and the impact of franchising and licensing agreements on global development. Additionally, it discusses current trends, such as sustainability and technological advancements, and external factors that influence the industry's growth. Finally, it provides insights into how companies like Britannia are adapting to meet current needs and trends, while summarizing the overall importance of the hospitality sector in driving economic progress. The presentation concludes by referencing several academic sources to support its findings.

The Contemporary Hospitality
Industry

INTRODUCTION
 Hospitality industry can be defined as inns, motels, hotels and such businesses that
provide short term lodging. This presentation is going to discuss roles of operational
and functional units of hospitality industry. Further, it will discuss some ways by which
this industry improves local, national and international economic condition.

Different types of businesses within hospitality industry along
with services that they offer
 Within service industry, hospitality industry is a broad category. Some different types of
businesses that fall under hospitality industry include:
 Accommodation: This broad sector of hospitality industry is accommodation
comprising with different types of hotels and facilities.
 These facilities have provision of overnight accommodation.
 Some different types of hotels or accommodation that are common in this industry
include: luxury hotel, budget hotel, hotel spa and bed and breakfast hotel.
 Food and beverage: It is one of the main largest sectors in hospitality industry.

CONT…
 Entertainment: It is significant part of travelling.
 There are number of top tourism destinations where people can entertain themselves by
enjoying theme park, museum, zoos and marinas.
 Walt Disney resort, Magic Kingdom park are some examples of entertainment business.
 All these businesses in hospitality industry play a vital role as it attracts customers and
employers find easier in improving economic condition.
 Britannia, British hotel group offer banqueting functions, health club membership,
food, attractive room, Wi-Fi and other services.

Operational and functional departments within hospitality
business
 Some important functional departments of hospitality business that help their business
in becoming successful as well as accomplishing goals include:
 Front office department: Front office department is an important operational
department of hospitality business including Britannia hotel. Front office staff are
responsible for satisfying customer at their first meeting.
 Food and beverage service: Food that made in kitchen as well as drinks prepared in
bar need to go to customers in and decent and timely manner.

CONT…
 Marketing: It is a functional department of hospitality business that is
responsible to attract and influence customers for buying products and
services of their company.
 Market research, identifying current needs of customers and providing
all these details to purchase and sales department for satisfying
customers are some main tasks that this department perform.
 HR: This department of Britannia performs number of tasks such as:
designing roles, recruiting skilled employees, motivating them, retaining
them and firing underperformed employees in an effective manner.
 All these departments make Britannia able in accomplishing its
goals as well as taking competitive advantages.

Contribution of hospitality industry to local, national and
international economies
 Hospitality and tourism sector play a vital role in improving economic condition.
Hospitality sector accounts for over 11% of global GDP. It contributes in improving
economic condition by:
 Increasing employment: Britannia hotel group employs around 12000 employees and
on the basis of this number, it can be said that hotels or hospitality industry play a vital
role in improving economic condition. Economy improves when there is a cash flow in
market and this flow can be generated when people have employment opportunities.

Interrelationship of functional units
 Functional and operational units of hospitality industry have interrelation with each
other’s and for success, there is requirement of staff of all these departments to
communicate with each other’s by using effective communicational modes.
 Marketing and sales: These both departments have interrelationship as marketing
department needs to give detailed information of market research to sales.
 Sales department increase selling on the basis of gathered market research
information.

Use of franchising and licensing agreements that influenced the
global development of hospitality industry
 By using franchising method, hotels and companies can use popular parenting company for prescribed
period of time.
 By using licensing and franchising modes of business, companies can provide services indifferent areas and
countries.
 It is beneficial for franchising as well as parenting company as it can increase market share and image of
company.
 It can increase global economy and people of different areas and countries can get employment
opportunities.
 On the basis of this, it can be said that these agreements influence global development of hospitality
industry.