Hospitality Industry for Future Leaders: A Comprehensive Report

This report provides a comprehensive overview of the UK hospitality industry, examining its structure, including organizational frameworks and functional departments. It delves into the diverse segments within the industry, such as food and beverage, travel and tourism, lodging, and recreation, while also assessing their contributions to local, national, and international economies. The report analyzes the interrelationships between operational and functional units, emphasizing the significance of franchising and licensing agreements in global development. Furthermore, it explores current practices and challenges in human resources, including employee management and customer service, and discusses factors impacting the hospitality department, such as economic conditions and technological advancements. Finally, the report highlights emerging trends, including sustainability, technological integration, and customer experience, offering insights for future leaders in the hospitality sector.

HOSPITALITY INDUSTRY
FOR FUTURE LEADERS

Table of Contents
INTRODUCTION...........................................................................................................................1
CHAPTER 1 Hospitality industry in UK.........................................................................................1
CHAPTER 2 Organisational structure within hospitality business.................................................3
CHAPTER 3 Current practices and challenges of human resources in UK hospitality..................4
CHAPTER 4 Factors impacting the hospitality department............................................................6
CHAPTER 5 Hospitality trends and current development..............................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
The Hospitality Industry is board category that is inclusive of lodging, event planning,
themes parks, transportation, cruise lines within the tourism industry (Ali, Murphy and Nadkarni,
2018). The major focus of this industry is over satisfaction of customers and providing them
specific experience. This industry has particular area as accommodation, Food and beverage and
travel and tourism.
The present report will look over Hospitality business in UK, this assignment will be
inclusive of following things as structures in hospitality businesses, current practices, challenges
in United Kingdom hospitality and factors affecting developing within entity.
Lastly, emerging trend relates to current development will be explored as increased
emphasis on health and wealth being, rules of sustainability and usage of technical advancement
to satisfy the expectation of customers. Organisational structure assists to carry out operational
activities effectively. It is useful to divide the task specifically within the each departments and
among authority. In this, the chosen hospitality business is consider as Hotel and lodging
operations. Thus, hotel must have organizational structure that provides services to customer in
more effectively manner. In addition to this, structure remains the same and roles and
responsibilities of each department are essential to maintaining well functioning within the
enterprise.
CHAPTER 1
P1 Define the types of business within the hospitality industry and its diverse product and
services
The units of hospitality industry such as of restaurant, hotel, amusement park that
includes facility maintenance and direct operations. Thus, there are four following segments of
hospitality industry and its defined in following manner as-
 Food and beverage- It is one of the largest segments in hospitality industry. This
establishment is engaged in services as preparing meals, snacks and beverage for
immediate consumption on and off the premises (Ammachathram and Anderson, 2018).
This industry can helps to enhance guest experience with help of providing excellent food
and first class customer service. For example- Nando's is an internation company and it
works in fast food chain in UK. Thus, this industry takes various initiatives in terms to
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provides better products without compromising the quality and excellent services to
customers.
 Travel and tourism- It is industry that deals with services related to moving people from
one place to another. This is inclusive of things as buses, cabs, planes, trains and this all
are part of travel industry. Thus, the one of the major function is to motivate people to
travel. For example- Thomas cook enterprise provides travel and tourism services to
customers as they work as to arrange and plan tickets for holidays to customers with all
kind of facilities from flight booking to hotel and tourist guiders, convenience.
 Lodging- This means accommodation that provides for a period or a place to sleep for
nights. Thus, lodging business markets to other markets segments such as business
travellers, leisure travels, long stay travellers and budget travellers (Chung and
D’Annunzio-Green, 2018). For example – Travelodgue hotel business UK, provides the
best accommodation facilities to customers and it also helps to saves the time and cost.
The better quality rooms at the affordable cost attract the customers in larger extents.
 Recreation- It is an activity that people do for rest, relaxation and enjoyment. Thus, the
main object of recreation is to refresh individuals body and minds. If any business
provides activities for rest, relaxation and enjoyment to refresh mind and body is the
recreation.
P3 Contribution of hospitality industry to local, national and international economies-
The contribution of the Hospitality Industry to the UK economy has been growing
quickly. Thus, hospitality is main source of foreign currency exchange and largest employers to
employ workforce. It is growing rapidly and contributing 10% of the world's GDP. Furthermore,
this industry expanding globally and promotes major growth in changing multicultural
environment (Kasim and et.al., 2018). In addition to this, it can be said that the international
oriented hospitality with different firms compete with locally and regionally. However, it is
stated that hospitality service is providing more than 10% employment ion the UK that is
approximately as 2.5 million people.
M1 Define the interrelationship of operational and functional units within hospitality business.
In hospitality industry, all departments are interrelated to each other. Operations
department it is essential to meet healthy and safety requirements. The finance department work
as to focused on cash flow and perform the things effectively. In addition to it, human resource
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department must work as to hire the competent employee to the workplace to the department. In
order to carry out the better performance, the work of all department interlinked to each other.
The relationship between operational management with other functional areas plays crucial role
in order to derive the business function in appropriate manner. In this, business leaders needs to
consider the all level of cost from operations, sales, administrative and distribution. Thus, it can
be stated that functional level of strategy is a response to operational level of strategy. Thus,
functional area of organization are derived as marketing, human resource, finance, information
management and public relations. These both are interlinked to each other to manage the
functions of hospitality.
M2 Description on the use of franchising and licensing agreement and it has influenced the
global development of hospitality industry.
The franchising and licensing agreement has influenced the overall working of business
enterprise. Thus, there are some popular destination as fast food restaurants, McDonald, Subway,
Dunkin Donuts are top of the franchises. By acquiring a franchise from hospitality company with
a large, loyal fambase, loyalty program and brand standards. This is very helpful in order to
maintain the streamlined exterior in eyes of consumer. Thus, international loyalty programs
utilize the popularity of brand in market.
The hospitality industry contribute to the local and international level as it the fastest
growing industry. It helps in creating job employment, moreover, It increases the foreign
exchange, It increases the income for local market. The international tourism in world exports
to 4.6% in 2017. Moreover, it created 7 million job in 2017 (Travel & Tourism’s contribution to
the world's economy, 2018)
D1 Analyse how global growth, franchising and licensing development contributes to economic
worth of hospitality industry.
The franchise in global market enables many globally brands. With this concept, it brings
integration, learning and acceptance of various culture, historical, religious and other customs or
habits. In modern era, consumer prefers to have standard quality good and services. This kind of
services leads to economic growth in country as it affects the demand of hospitality business.
CHAPTER 2
Functional structure of enterprise-
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The hospitality industry in UK is broad and varied and this entity is raising from single
person association to worldwide corporation. The hotel management is one of the comprehensive
plan and it is basically segmented into six division as finance, front office, human resource, food
and beverage, sales and logistic.
Tall structure- At this, there are many levels of hierarchy. The span of control in narrow Which
means that there is single manager that overseas few subordinates and there are lot of
opportunities for promotion. For example- Tesco is running it activities with having tall
structure.
Flat structure- There is no levels of management between management and staff. Its supervises
the employees at the time of promoting the increased involvement in decision making process.
This industry has wide span of control.
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Matrix- It is combined as it combination of functional grouping and divisional product
structuring. Thus, there are two chain of command as the employees have to answer in front of
two managers.
CHAPTER 3
P2 Examine the range of operational and functional departments.
The hospitality industry is unique in nature and it tends to be service oriented and also
has strong emphasize over human exchange in service delivery processes. Thus, characteristic of
hospitality defined in below presented manner as are-
 Under hospitality industry, customers rarely consumer pure commodities but mixture of
product and services. The consumer not only pays for food and drinks but also for the
services provided by service providers (Gursoy, 2018).
 To get the service excellence in hospitality industry the two way communication is one of
the critical factor that requires involvement and participation of both customer and
service in delivery process. The staff must have idea about the needs and expectation of
the customers so it can be possible to create customer satisfaction (Kamble, Gunasekaran
and Gawankar, 2018). It can be possible by having effective communication with internal
staff.
 To build long term relationship with customers can be beneficial for the growth and to
develop brand reputation with assist of word of mouth of repeated customers. To develop
brand recognition there are differ methods that helps to give privilege and incentives to
frequent customers.
 The hospitality are closely related to tourism industry and people related with this sector
are facing some amount of diversity whether they are customer or staff. In order to cope
up with it, this is essential to identify the needs and wants of customers. Thus, the staff
should be open minded and they must come up with solutions together in order to resolve
the problems.
 The hospitality industry is service oriented in its nature and it is essential to have creation
of memorable experience of customers. Thus, better labour incentives strategies will
helps to offer one on one services to customers.
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This is the group that works as to handling the issues that are directly related to the guest
within the enterprise. Thus, team must handle request, issues and services for customers.
 Housekeeping- It is an area that affects the satisfaction if guest at any hotel (Kamble,
Gunasekaran and Gawankar, 2018). Their role is to keep maintenance of the place so it
can attract the customers. Thus, they must understand their importance of role within
hotel and strive to offer excellent service to guest.
 Food and beverage- This department manages restaurant, cafes, shops, bars, lounges and
other type of food preparing facilities at the property. Thus, it is department that is crucial
for providing better convenience to guest and helps to enhance profitability of hotel.
 Front desk and guest service- This are the departments that address questions, concerns
and problem of guest. They are the person who must be well educated about the property
and must know the area around the hotel (Kasim and et.al., 2018). Thus, more informed
staff members can perform better function to meet the needs of guest.
 Administrative groups- They are the group of individual who works as to handle the
business function which are to be handle the internal operations that helps to keep
running activities smoothly. Under this, team must organize the system in better and
effectively mode.
P4 Examine range of operational and functional department within chosen hospitality business.
Executive managers- At this level, the hotel owner and general manager will be consisting. The
owner of hotel works as to sets the standards and policies and delegates this to general manager
for implementation ( Le, McDonald and Klieve, 2018). Thus, they play their role as to manage
day to day activities to over function within departments as food and beverage, laundry and
housekeeping.
Assistant managers- In many enterprise, the assistant manager is the general manager and they
plays their role as right hand and provides supports in daily task (Mhlanga, 2018.). His role is to
make proper communication with heads of all departments and ensure handling issues that could
affect the performance standards within hotel enterprise.
Mid level managers- They are the manager who comes under the assistant manager and they
holds the position as front desk managers, Food and beverage, sales managers, house keeping,
financial manager and house keeping. Thus, the food and beverage manager is responsible for
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handling, room service, catering and daily activities of hotel. The housekeeping manager is
responsible for looking towards the cleaning and maintaining appearances. Furthermore,
marketing manager is responsible for promoting campaigns to attract guest.
Operational staff- This is inclusive of food and beverages, housekeeping, front desk and bar.
The position of staff will be inclusive of chefs, cooks, dishwashers, guest, room attendants and
room service waiters, porters etc.
P5 Define skills required for roles within hospitality industry
To build the career in hospitality is bast and demanding. Thus, hotel employs front desk
staff, restaurant staff, event planners and it depends on type of hotel. Most of the position
requires the excellent customer skills and attention towards personal grooming. Thus, skills as
are-
High level of customer service- The person should have ethical manner to talk with any random
person. To build career in hospitality means working in the customer facing environment. Good
customer service means to understand the needs and wants of customers by putting their
happiness at the forefront (Le, McDonald and Klieve, 2018).
Good communication skills- The person should have better communication skills and it must be
maintain between customer, staff and managers and this helps to bring smooth working within
enterprise. To perform effectively, oral and written communication must be executed at all facet
of the enterprise.
Formal training- The hospitality industry relies over the government laws and legislation and to
make this effective it is essential to provide formal training to all employees within enterprise.
The all employees must receives the better training so that they can understand the norms and
follow it on regular manner.
High level of cultural awareness- At the hospitality sector, person can encounter with lot of
differ people from varied places. In order to get succeed, it is essential to have open mind so it
can embrace the people around and aids customers to feel comfortable at ease ( Mhlanga, 2018.).
Work well in team- In the hospitality business, the person has to perform his role in the united
manner that is team work. In order to get succeed, it is essential to keep functioning with people
and this is helpful to satisfy the customer to perform the function in effective manner.
Current skills shortage within hospitality industry
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The skill shortage is one of the biggest challenge that is facing by the hospitality industry.
Thus, hotel enterprises are struggling to match the staff skill level with demand of customers.
The skill shortage gas defined in below contextual manner as-
 Poor team role- It is one of the biggest concern due to it number of staff under-perform
their activities. The workers to enterprise need to perform their role in better mode. Thus,
hospitality workers must have idea that customer uses to judge the entire enterprise on the
performance of two or three workers (7 Essential Skills for a Career in Hospitality,
2018).
 Inability to compete- The one and another potential consequences relates with
hospitality skill shortage is gap between high and low performing hotels and restaurants.
The entities those have additional capital resources and motivation to invest in worker
and paying more higher wages helps to attract the skilled workforce are forces the other
employees who are getting less wages for same work.
 Less people-centrism industry- The fast running casual dining and rise in self selection
and automation in which the businesses are less dependent on their staff staff. This is
term that provides effective services and it also leads to perform the things in better and
efficient mode.
The three types of job includes :
 Catering assistant : The role of this person is to provide general assistance to catering
manager. The duties performed by this person includes cleaning, maintaining food
safety etc.
 Manager : It is responsible for managing the work In the hospitality business. It is
responsible for hiring and supervising the staff, resolving customer complaints etc.
 Receptionist : It is responsible for greeting the guest on arrival, Answering the telephone
etc.
M3 Define review the skill gaps within hospitality industry in relation to rage of different
operational role.
In hospitality industry, the staffs needs to be skilled in order to carry out the range of
different operational role in systematic manner. It determines the management function in
systematic mode. Thus, good communication and behaviour skills of staff attract the demand of
customers. So, the management department of hospitality needs to hire the skilled workforce.
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D2 Define the impact that skills gaps have hospitality.
In hospitality enterprise, it is crucial to hire the skilled workforce so that better
performance can be conducted by the managerial department. Thus, it has been stated that skill
gap is the difference in the skills required on the job and actual skills possessed by the
employees. Thus, hospitality skills shortage is one of the biggest challenge that is currently
facing by the enterprise. This is very important in order to provide good customer service. Thus,
manager of hospitality department needs to provide training facility so that there can be
enhancement in profitability and productivity to enterprise.
CHAPTER 4
P6 Access the factors impacting the hospitality department
The number of factors can affect the working of the hospitality organization and this
affecting the working of the enterprise in huge context. Thus, PESTLE analysis as-
This analysis is one of the useful tool that aids the firm to understand the impact of micro
environmental factors over firms. Thus, it can be defined in following manner as are-
 Political factor- Political stability is one of the strongest factor within enterprise. The
issue relates with Brexit has created several uncertainties and political debates. It has
created the chaos, unimaginable and it provides open doors to immense opportunity for
country (Hospitality trends, 2018).
 Economical factor- The recession in the economy also affects the working of hospitality
business. For example- In UK holiday firms as Butlins and heaven has become very
popular as they caters their families in united kingdom by providing home for an
affordable price.
 Social factor- This trends can also affect the market. Thus, trends as consumer lifestyle,
demographic variables and cultural trends affecting the working within the enterprise. In
order to enhance the working of Hospitality businesses it is essential to identify the
needs and wants of customers. It includes changes in taste and preferences of customers.
Moreover, The demographic variables includes age , genders , etc.
 Technology factor- With the advent of technical advancement the hospitality industry is
growing in fastest manner (Chung and D’Annunzio-Green, 2018). Thus, firm must bring
effective changes so that all working can be done in effective manner. It includes
changes in technological tools, system and software which affect the firm. With the
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change in technological tools the organisation face more competition if the competitors
are adopting those changes and will reduce their customer base.
 Legal factor- The regulatory environment in tourism industry is quite typical. The laws
can affect the public safety. Thus, staff training must be provide as it is essential to
prevent any legal hassles.
 Environmental- Sustainability within hospitality industry is one of the key concerns. In
order to manage the ecological the waste management and all other concerns are essential
for tourism operators.
P7 Undertaking of SWOT analysis on hospitality business(Thomas cook)
Strength
 It is the largest and oldest travel company
in UK.
 This Provides affordable and accessible
holiday services to customers.
 The customization and flexibility features
are avail in terms to design holiday
package as per the needs of individuals.
Weakness
 The long term debt makes each
function of market in fluctuated
manner.
 In this, continue growth of
competition means to have limited
market share.
Opportunities
 Online booking option to have combined
tour package.
 The current quarters has shown positive
financial turnaround possible with
initiatives of cost saving.
Threats
 The lower amount of profitability.
 Euro-zone economic uncertainty in
business (Ammachathram and
Anderson, 2018).
 The competition will grow from low
cost carriers.
Hence, From the above analysis of SWOT will help to determine the strength and weakness
resides within the enterprise. Thus, it helps the enterprise to deal with then all function in better
mode. It helps to put consideration over strength, minimise threats and take the greatest possible
advantage of opportunities available to person. However, SWOT analysis is mainly for
strategical decision making.
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M4 Description on evaluation of external factors on development of organisational operation
within hospitality industry.
The external factors affect the working of industry in huge context. Thus, political
stability and economic recession affects the working of the industry in huge context. This all
kind of factors largely affects the demand of hospitality enterprise. Thus, better external working
creates the competitive advantage for hospitality industry. Therefore, there are number of
external factors that can impact the ability of business or investment in order to achieve its
strategic goals and objectives. Under this, there are number of factors that are inclusive of factors
as social, legal, political, economical and technological changes.
D3 Critically evaluate that how external factor impact on current and potential trends.
In this, it has been stated that the external marketing functions as social, demographic,
economic, technological, political, legal and various competitive variables affects the decision of
marketing. These are factors that are beyond the control of company. Thus, it must be decide that
hoe managers to the enterprise handles overall functions.
CHAPTER 5
P8 Appraise the implication of current potential trends and current development
In the modern scenario, there are number of trends that can affect the working of
hospitality and bu use of it long term development can be done. Thus, there are following trends
under hospitality business as-
 Increased emphasis on health and well being- In hospitality enterprise, the well trend
is continue to grow as it is very exciting for travelers to have so many options that can
cater the individuals needs. In modern scenario, guest are taking the charge of their
health, well equipped fitness center, pools and spas. Moreover, healthy food options will
be inclusive of air purification, Yoga spaces and also vitamin infused shower water. In
the present scenario the most of the customers are health conscious and they prefers
gluten freed foods and that are inclusive of fruits, vegetables, fresh meat, fish and poultry
and certain whole grains. Thus, many customer suffers from diabetes and several disease
and for it entity should provides sugar free product and services to customers.
 Sustainability rules- To conduct effective working in hospitality business it is essential
to have Eco friendly practices so that ficus can be on renewable energy water resources
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and water scarcity (Ali, Murphy and Nadkarni, 2018). Thus, many hotels are taking
initiatives to install solar panels and updating system so that air condition and lights
automatically switch off at time when guest leave their rooms.
 Use of technology to satisfy customers- With the advent of technical advancement,
seamless connectivity across platforms and devices is growing rapidly. There are number
of hotel that provides the facility as offering mobile check in and digital concierge
services. For example- In Aria Resort and casino in Las Vegas the customer are issues
high tech cards that works as to detect their presence and unlock the door before they
even reach it.
M5 Description on evaluation the ability of specific hospitality business to develop product and
services.
In hospitality industry, the customer can get attract towards the product and services. The
success of the business to certain extent depends on ability to acquire and decision makes to
make appropriate investment and decisions. By bringing up the modification in product and
services involves developing creative, innovative and practical solutions to get the quality
service delivery of business product and services. With help of better technology and quality
products leads to have enhancement in customer satisfaction.
CONCLUSION
Based on above report it can be concluded that hospitality industry provides better
services to customers. They usually focus over providing better satisfaction to customers and
enhance their experience. The present report has prepared in context of hospitality business
within UK. Furthermore, report will focus over following things as types of businesses within
hospitality industry, factors impacting hospitality department, trends and current development
with hospitality and skills requires to make career in hospitality business.
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REFERENCES
Books and Journals
Ali, A., Murphy, H.C. and Nadkarni, S., 2018. Hospitality employers’ perceptions of technology
for sustainable development: The implications for graduate employability. Tourism and
Hospitality Research. 18(2). pp.131-142.
Ammachathram, A. and Anderson, D.M., 2018. Addressing the Challenges Facing Hospitality
Academic Programs in the USA: Portfolios and Action Learning. In Innovation in
Hospitality Education). Springer, Cham.
Chung, K.L. and D’Annunzio-Green, N., 2018. Talent management practices in small-and
medium-sized enterprises in the hospitality sector: An entrepreneurial owner-manager
perspective. Worldwide Hospitality and Tourism Themes. 10(1). pp.101-116.
Gursoy, D., 2018. Future of hospitality marketing and management research. Tourism
management perspectives. 25. pp.185-188.
Kamble, S.S., Gunasekaran, A. and Gawankar, S.A., 2018. Sustainable Industry 4.0 framework:
A systematic literature review identifying the current trends and future
perspectives. Process Safety and Environmental Protection. 117. pp.408-425.
Kasim, A., and et.al.,2018. Impact of market orientation, organizational learning and market
conditions on small and medium-size hospitality enterprises. Journal of Hospitality
Marketing & Management. pp.1-21.
Le, A.H., McDonald, C.V. and Klieve, H., 2018. Hospitality higher education in Vietnam:
Voices from stakeholders. Tourism Management Perspectives. 27. pp.68-82.
Mhlanga, O., 2018. Factors impacting restaurant efficiency: a data envelopment
analysis. Tourism Review. 73(1). pp.82-93.
Online
7 Essential Skills for a Career in Hospitality. 2018. [Online] Available
through:<https://www.kangan.edu.au/students/blog/essential-skills-for-a-career-in-
hospitality>.
Hospitality trends. 2018. [Online] Available
through:<https://www.accorhotels.group/en/Actualites/2018/02/08/hospitality-trends-
2018>.
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Travel & Tourism’s contribution to the world's economy. 2018. [Online]. Available through :
<https://www.traveldailynews.com/post/travel-tourisms-contribution-to-thw-worlds-
economy>
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