Analysis of the Hospitality Industry: Franchising & Economic Growth

This report examines the hospitality industry, encompassing key sectors such as lodging, food and beverage, travel and tourism, and entertainment. It delves into the significance of franchising and licensing, highlighting their influence on industry expansion and economic growth. The report details the contributions of the hospitality industry to economic development, including direct and indirect contributions through employment, taxes, and tourism. It also addresses the impact of global growth, technological advancements, and the challenges faced by hospitality managers, such as meeting guest needs and ensuring repeat visits. The analysis emphasizes the importance of franchising as a tool for growth within the service sector and its role in the industry's overall success.

HOSPITALITY INDUSTRY
Lodging- accommodation- This sector comes in hotel industry with broad area. This
facility finds from big hotels, resource etc. Accommodation is broad sector of this industry.
Staying facility which provides a room service and it is depended on the area and level of the
hotel. Different type of accommodation services which include lodging, suits, and resorts.
The people who travel one place to another place they need a shelter to sleep and it comes
into lodging.
Food and beverage- This is second wide area of the hospitality industry and it includes
catering business, full service restaurants, and quick service establishment. Catering business
provide its services on occasions like wedding, birthday etc. Full-time restaurant provides
their services in form of breakfast, meal, dinner on one place. Other one is quick service
establishments which provide their services with other varieties of food in a supply chain.
Travel and tourism- It is also a wide sector in hospitality industry which provides their
services in term of train, buses, airlines, ships. It helps the people who want to go to one
place to another place according to their sources. It is the most growing part of the
hospitality industry, without is hospitality industry cannot grow.
Entertainment industry- It is the important part of travel and tourism sector in these days.
Demand of this sector grown up day by day. People who stay in a hotel and who want to
travel, they want that this sector have to entertain them. In this sector the things which
include are sports and games, bars, pubs, late night parties etc. It is important for
successfully running of the hospitality industry to bring themselves with entertainment.
Hospitality industry remains well known industry in terms of franchising. It is the
business model that is used in many industries that leads in expanding quickly and
also in increasing profits to great extent. This is to discourse upon the way in
which global growth is highly influencing the hospitality industry to a great
extent. It has been found to be a positive impact with greater exposure to different
culture, giving several opportunities of growth to the organisations operating in
this sector. Although, it together leads to the existence of competitive pricing.
Another effect is in terms of advanced technology with a scope of creating easier
ways of travelling. Beside this, their together exists yet another conceptual
existence of franchising that equally contributes in the development of hospitality
sector. This simply indicates the internalisation of hospitality-based organisations
and is of great benefit for the lodging businesses. Franchising has become a
powerful tool for the service sector industry and is referred to be a mean of
facilitating growth. It is with a special consideration of rising ageing population in
countries like UK where a franchisor can make an effective use of his or her
2. Contribution of hospitality industry in economic growth
There is major role plays by hospitality industry in the economic growth. Its
main part of contribution in indirect taxes. Hospitality industry is spread of anywhere and it
has a large scale. Tourism industry make also a main role in contribution because many of
the travellers are exists who travel one place to another place with plenty of time. The
travellers make a main role in the industry through travelling. In it they contribute in
accommodation, foods and beverages, travel industry etc. When they go for food and
averages then they paid indirect taxes which applied on the food products. There are
following contributions in economic growth. They contribute their major role to the
economic development and through travel and tourism their place as wee as the country also
create popularity in that particular industry.
Direct contribution- This field directly contribute in the employment. From this hospitality
sector many of the unemployed create employment because this is only one sector which
spread off on large scale and no more qualification needed for job in hospitality industry.
There only need for communication skills.
Indirect contribution- Hospitality industry makes major role in the indirect contribution.
When the people come for travelling on the other country then it is easy to pay the value for
them. They provide their contribution with purchasing material like food and beverages,
accommodation etc. Indirect contribution is the highest contribution which paid to
government and this helps to develop GDP rate of the country.
The importance of economic is well established in hospitality industry. Therefore, the
managers that are involved in particular company has to face various challenges that
includes satisfying needs of guests and also has to ensure that the particular guest may repeat
their visit in particular hotel.
3. Influence of franchising and licensing on hospitality industry
Global growth is termed as increase in capacity of the economy in order to
produce goods and services that is been compared from one period to another.
Thus, Franchising has been growing rapidly and significantly in hospitality
industry. It is considered as the preferred method in terms of doing business in
which the franchisor designs the marketing format by giving right in order to use
the name, trademark or advertising and also to engage them in selling, offering
and also in distributing goods and services. It aids in stimulation of the economy.
This stimulation is done by creating jobs and also be expanding business in
national or internally border. Today there are over 80,000 franchised business
that are established and 150,000 international franchises that follow the system of
franchise.