Report: Contemporary Hospitality Industry Analysis - Unit 1

This report provides a detailed analysis of the contemporary hospitality industry, focusing on its scale, scope, and diversity within the UK. It examines various organizational structures, including those of five-star hotels and restaurants, and assesses the staffing requirements and responsibilities within these businesses. The report also explores the roles of hospitality-related organizations and professional bodies, such as the British Hospitality Association and the Institute of Hospitality. Furthermore, it delves into operational, managerial, and legislative issues resulting from recent developments and predicts potential trends and their impact on the industry. The report concludes with an overview of the industry's current image and future prospects, providing a comprehensive understanding of the contemporary hospitality landscape.

Contemporary Hospitality
Industry

Table of Contents
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1.1 Analyzing the current scale, scope and diversity of the hospitality industry........................4
1.2 Organizational structure of different hospitality organizations............................................5
1.3 Role of hospitality industry related to organizations and professional bodies......................7
TASK 2............................................................................................................................................8
2.1 Assessing the Staffing requirements of different Hospitality Businesses.............................8
2.2 Roles, responsibilities and qualification requirements for hospitality staff..........................9
TASK 3..........................................................................................................................................10
3.1 Analyzing Operational, Managerial and Legislative issues resulting from recent
developments.............................................................................................................................10
3.2 Current image of the hospitality industry............................................................................11
TASK 4..........................................................................................................................................12
4.1 Predictions for Potential trends and Developments in Hospitality Industry.......................12
4.2 Impact analysis for the predicted trends and developments in Hospitality Industry..........12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

Illustration Index
Illustration 1: Organizational Structure of a Five star Hotel............................................................6
Illustration 2: Organizational Structure of a Restaurant..................................................................7

INTRODUCTION
Hospitality industry has become a major revenue generating sector in terms of economies
of different countries. It is a huge industry in itself which can be understood by the fact that in
United Kingdom alone, there are approximately 180,000 hospitality establishments which have
more than 2 million people working in this sector. Hospitality industry includes some other small
sectors also like hotels, pubs and restaurants, etc. This sector is highly based or dependent on
their consumers. This report will focus on the analysis of hospitality sector by studying its
structure, staffing requirements, its development in terms of operational, managerial and
legislative issues as well as potential trends which are affecting this sector in United Kingdom.
TASK 1
1.1 Analyzing the current scale, scope and diversity of the hospitality industry
Scope and scale of hospitality industry are highly related to a wide range of hotels and
restaurants which provide different services and facilities to the tourists who travel in a particular
city. It is one of the emerging industries in UK. It was ranked as the 4th largest industry in 2012
which generates almost 53 billion GBP annually. There are so many businesses which come
under hospitality industry. Main aim of this industry is to serve their customers and make sure
that they are satisfied from the given services (Kandampully, Zhang, and Bilgihan, 2015). It
consists of various number of organizations in it like for example: restaurants, travel services,
hostels, bars and clubs, event management services, etc.
 Scope and Diversity of Hospitality Industry: There is a high scope and diversity in
hospitality industry as it contains many small businesses in it. There are so many people
who are owners, investors and managers in this industry who address all the issues
related to this industry. Customers are the one which help these industries to run
successfully in the market. It is very important to understand the changing trends in these
sectors to increase their overall profit from it. This is also establishing its business on
international platform as people are now-a-days more interested in traveling to foreign
countries for the luxury and entertainment purposes. Approx. 11% of the total GDP of
UK is generated through hospitality industry. It helps to give employment to people like
there are approx. 9,000 jobs in event management which are generated yearly in the UK
(Kim, Vogt, and Knutson, 2015).

Different Types of Ownership in Hospitality Industry: There are different types of
ownership which exist in this sector like:
1. Partnership: In this process, there are two or more individuals or parties which work
together for the organization and contribute in terms of money, labor, skills, etc.
2. Franchising: This is a type of ownership in which one person uses the company's name
or brand to sell services and for that, he has to pay to company's owner.
3. Contract: Ownership can be done by contracting method. In contract method, parties
come into an agreement about their financial and non-financial terms of business.
4. Leasing: Leasing is one of the famous ownership in hospitality industry because in this
method, money is being paid to main owner by the occupant for using that property for
business purposes (Mariani, and et.al., 2018).
1.2 Organizational structure of different hospitality organizations
There are many organizational structures present in the hospitality industry like for
example, five star hotels, restaurants, bars, parks, etc. All these structures have different
functions according to their requirements.
Organizational Structure of a Five Star Hotel: Organizational structures of hotels has
a wide range of staff positions which are pre-defined. The hierarchical organizational structure of
these hotels defines numbers of positions and their responsibility. There are a number of benefits
of hierarchical organization structure like:
1. Centralization: It helps to maintain a proper management of centralization in an
organization. Leaders and managers decide critical decisions and important strategies for
the organization.
2. Communication: The most important advantage of organizational structure is that it
helps to make communication more effective as everyone knows their roles and
responsibilities in the hotel management (Ryan, 2015.).
3. Authority: This is the method in which people have clearly defined authority in the
organization and they know what they are responsible for and what are their duties.

From the above image, it is clear that the general manager of the five star has various
responsibilities to perform like human resource management, food and beverage system,
accounting and sales as well as marketing is also done by him. All these categories have different
role and responsibilities which is performed by the staff members of the hotel.
Organizational Structure of a Restaurant: Unlike hotels, organizational structure is totally
different from them, as it is smaller than compared to the hotel industry. They have the simplest
organizational structure. In this structure, employees are grouped according to tasks which they
have to perform in restaurant. Different factors of this structure are as follows:
 Specialization: In this process, tasks are given to employees according to their
specialization in work. This can help the restaurant to make their employees to grow in
their respective field of work as longer they are associated with same type of work, the
more they become effective and expert (Contemporary hospitality, 2018).
 Simplicity: This type of organizational structure is very simple and this helps restaurant's
manager to understand his roles and responsibilities in the organization. It is very helpful
in increasing the productivity of restaurant as specialization leads to enhancement of the
performance of employees as well as of workforce.
Illustration 1: Organizational Structure of a Five star Hotel
Source : Contemporary Hospitality Industry, 2018

From above image, it is clear that manager of the restaurant has various roles to perform
in restaurant, for example, he has to manage human resource department, finance and marketing.
Along with this, he has to maintain the security measures as well.
1.3 Role of hospitality industry related to organizations and professional bodies
Roles of hospitality industry is different for every organization and professional bodies
like for example:
1. British Hospitality Association: It is also known as BHA which is a private organization
that was developed in the year 1907. It is considered to be one of the major organizations
related to hospitality industry. It is basically associated with hotel, restaurant and catering
companies. The major function of BHA is to work with government bodies to ensure a
proper business environment in which hospitality as well as tourism can function in
efficient way (Tsai, and et.al., 2015). The British Hospitality Industry works for
development of hotel and restaurants like for example:
 Employment: It helps to give employment to people who are interested in the hospitality
sector.
 Economy: BHA helps to develop an environment where hospitality industry can grow in
competitive era and in global competition.
Illustration 2: Organizational Structure of a Restaurant
Source : Contemporary Hospitality Industry, 2018

1. British Institute of Inn keeping : Also known as BII. It is a type of professional body
which helps the licensed hospitality industry operating in UK. BII plays an important role
for this sector, for example,
 Advising : They help hospitality industry by giving them legal advice and helps them in
financial and licensing aspects required in the business.
 Membership Benefits : There are so many benefits of becoming members of BII. It will
provide various services, such as, events, newsletters, businesses magazine, etc.
 Charitable Status : BII also act as a foundation which works for the promotion of the
standards of hospitality industry. It also manages to develop a profitable business for the
individuals working in this sector (Wang, and Tsai, 2014).
2. Springboard UK : This organization helps the individuals, unemployed who are in a
situation where they need a job or career for the betterment of their life's standards.
Springboard UK's main aim is to promote the hospitality industry as the most suitable
sector to work. Another major function of Springboard UK is to work for addressing the
human resources and corporate social responsibility needs in their business associates and
helps to raise funds for charity.
3. Institute of Hospitality : it specifically works for the manager and aspiring mangers of
the hospitality industry for the development of this sector in the market. There are
different roles and responsibilities in different fields of Institute of Hospitality, for
example,
 Qualification & Accreditation : It helps to offer a number of different programs in the
field of management which can be beneficial for the industry to grow in the target
market.
 Membership : There are so many programs which is operated by Institute of Hospitality
to provide opportunities to increase the skills which is required for the management of the
industry (Wu, and Liao, 2016).
TASK 2
2.1 Assessing the Staffing requirements of different Hospitality Businesses
In hospitality industry, staffing plays an important role. It is a process of recruiting
candidates who are capable of giving their best for the organization in which they are working. It
should be done very carefully by the management team of any organization in order to increase

their sales and growth in the market. The staffing process for this industry is done for catering a
wide range of service areas. Various positions of hospitality businesses where staffing
requirement has to be done, for example,
 Catering Manager
 Hotel Manager
 Restaurant Manager
 Counter boys
 House keeping
 Sales & Marketing
 Outlet cleaner
 Event Managers
 Finance & Accounts
 Kitchen operation’s in charge
 Housekeeping staff
For recruiting new members in the organization, it is very important to consider some points, foe
example, while taking interviews, proper questioning should be done by them to evaluate the
qualities of the candidates. Designing a good advertisement for recruitment should also be done
by them to attract more desirable candidates (Xu, and Martinez, 2018).
2.2 Roles, responsibilities and qualification requirements for hospitality staff
There are so many staff members which works in the hospitality industry, for example,
manager, supervisor, management trainee, etc. All these have different roles and responsibilities
in the organization, which is explained below,
 Manager : The main responsibility of the manager in the organization is to maintain the
standards of the organization and analyzing and planning restaurant sales and profits.
Manager must have a certified degree for the post. He should have organizational,
administrative and interpersonal skills.
 Supervisor : He is the person who is supervising all the operations in the organization.
He orders and manages inventory and trains the staff members. Minimum qualification of
a supervisor should have a good communication skills and must have a great work
experience. He should know how to handle situation in the workplace.

 Accounts and Finance : He should have a proper knowledge of accounting. Minimum
qualification is to have a degree in accounting and finance.
 Apprentice : He should learn and follow rules set by employer. Must demonstrate safety
for self and coworkers. Minimum qualification for apprentice includes, he must be 16
years and above and is not in fulltime education (Unit 1 Contemporary Hospitality
Industry Assignment. 2018.).
TASK 3
3.1 Analyzing Operational, Managerial and Legislative issues resulting from recent
developments
There are so many issues which every business has to face at several levels. Hospitality
industry also has various issues which can vary from operational, legal or managerial level.
Following are the issues which the organizations can face in the businesses due to recent
development,
 Operational Issues : There are so many operational issues which can arise in the
organization. Such as,
1. Increased Competition : There is so much of competition in hospitality industry which
has to managed by the organization at operational level only. This will help them to
provide new and innovative ideas which can be beneficial for them.
2. Labor scarcity : They are most required factor to run any business successfully in the
market. Having a good number of labor in the organization will help them to work
properly and deliver the best work.
 Managerial Issues : There is so much of responsibilities which is handled by the
manager in the organization. There are so many managerial issues which arises in the
organization, for example,
1. Management Development : There should be proper management of work in the
organization.
2. Business or strategic Planning : Building an effective plan for the organization is also
done by the manager ( (Sonmez, and et.al, 2016)).
3. Promotional Management : Organizing different event to promote the services of the
organization.

 Legislative Issues : There are a variety of legislation that defend employers, workers and
customers and it also has an impact on the hospitality industry. This can be completed by
factors, such as, cleanliness, surroundings, fitness & security and office relations of the
organization. Cleanliness/Hygiene is a main factor which affects the hospitality industry
most. They should consider it very carefully. Security measures or issues should also be
considered by the hospitality business. In this industry, there are rules regarding the
workplace relations that need to be followed to sustain in the industry.
3.2 Current image of the hospitality industry
Hospitality industry is one of the most interesting industry to work in. The current
hospitality industry is actually exclusive and entertaining place of work and different in the
extent of responsibilities that one can achieve in this. Currently, this industry faces a trend of
globalization, as more and more individuals can travel without much of restrictions. Customer
focus and culture and media exposure help this industry to grow a lot, for example,
 Customer Focus and Culture : Customers plays a very important role in the hospitality
industry. If the organization is not fulfilling the requirement of their customers it can
affect them a lot. It is important for every individual to acknowledge the fact that proper
communication should be done in the organization in order to deliver right service to
right customer. Due to globalization, it has become a significant aspect for the hospitality
industry in relation to strategic planning of the significant number of international
hospitality organizations. There are a lot of change in the culture of the people which
should be carefully considered by the organization. The current hospitality and tourism
industry offer an extraordinary chance to understand and be familiar with various cultures
(Radojevic, Stanisic, and Stanic, 2015).
 Media Exposure : Media has a power to build or break the image of any organization in
the market. There is the ability of the hospitality industry in having a better exposure with
the support of media. With the help of media, hospitality industry can create their image
in the customers mind in order to attract them. Today’s hospitality sector functions in the
dynamic environment, to retain its customers and have a competitive edge, the quality of
service has increased. There is so much of competition in the market which has raised the
expectations of the customers, so the industry should raise their standards of services
which is being provided by them (Claveria, Monte, and Torra, 2015).

TASK 4
4.1 Predictions for Potential trends and Developments in Hospitality Industry
For the prediction for potential trends and developments in the hospitality industry
operating in UK can be done by studying various factors food fashion trends, entrepreneurial
opportunities, globalization, technology and its applications and the competitive nature of the
industry. This industry is growing very fast in the market with rapid change in the business
environment and in travel and tourism sectors. Some trends which has great impact on the
hospitality sector, are as follows,
 Lifestyle level changes : There is a continuous changer in the lifestyles of the UK people
which has a great impact on the functioning of the hospitality industry. For example,
there is a huge trend of boutique hotels in London which provides a unique experience to
their customers. So, there are various underlying changes which has to be accomplished
in the coming years by the hospitality industry.
 Focus on Sustainability : Hotels today are more focused on the sustainability of the
business. For example, if a resort located on a hill side, decides to remove all the trees
surrounding it then it will hamper the overall growth of the resort (Solnet, Kralj, and
Baum, 2015).
 Impact of Social media on the sector : Hospitality sector is highly influenced with the
use of social media by the people. They can use these services to promote their services
in the market by using tools like, Facebook and twitter. It is most important today for
hospitality sector to have a digital medium teams to focus on these aspects.
 Focus on renovation of old properties : There are lot of hotels and resorts in UK which
need renovation to satisfy their customers. One major reason which contribute to this fact
is the poor quality of the infrastructure of the buildings. So in coming years customers
should be ready to enjoy renovated hotel, lobbies, etc. of popular hotels in UK.
4.2 Impact analysis for the predicted trends and developments in Hospitality Industry
There is a huge scope for the development of the hospitality industry in UK. Continuous
change in the trends tends these sectors to update their system with them which can help them to
increase their growth in the target market. Various predicted trends and development which can
arise in the future, are as follows,