Hospitality Industry Analysis: Trends and Challenges

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CONTEMPORARY HOSPITALITY
INDUSTRY
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Contents
INTRODUCTION.......................................................................................................................................3
Task B..........................................................................................................................................................4
TASK C.......................................................................................................................................................10
Task c.........................................................................................................................................................14
CONCLUSION.............................................................................................................................................16
REFERNCES................................................................................................................................................17
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INTRODUCTION
This assignment is prepared to provide complete understanding and details of the contemporary
hospitality industry with the help of data and statistics available. In the first and second tasks, it
studies the nature, scope, and size of the industry; its contribution to the local as well as a global
economy. It covers the abilities and expertise required in the hospitality industry and also
examines the list of factors that affect the functioning of the industry. In the end, it undertakes
the SWOT analysis of the industry and it covers the existing and potential trends that affect the
functioning of the industry.
The hospitality industry is comprised of the pubs, hotels, clubs, theme part, and event planning,
etc. and it provides a range of services from food, and refreshment, etc. and it relies on the profit
on the purchasing capacity of the individuals. It is one of the leading employers in the UK and
contributes more than 20% of the economy of the UK. Hotel management is the part of this
industry and it is the industry that is incentivized by travel and tourism due to a variety of
reasons. It is the leading industry in the service sector across the globe due to increased
globalization (Visit Britain, 2019).
The Grand Brighton is a UK based hotel that offers the range of hotel services; as food,
accommodation, entertainment, etc. and these services are also supported by the interior of the
premises that is a fusion of contemporary and modern culture and the accommodations their
offers experience of fusion. And the present assignment is prepared to understand the need of the
Grand Brighton in the present situational changes. It a strong geographical expansion in Europe
(The Grand Brighton, 2019).
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Task B
CONTEMPORARY AND FORESEEN EXPERTISE REQUIREMENTS IN THE
HOSPITALITY BUSINESS
Any industry is incentivized by the skilled and qualified workforce; there are a series of abilities
required in this sector that are suitable for both the prevailing as well as prospective needs. The
abilities needed to accommodate the needs of the industry are as follows: Interpersonal skill: this
field requires excellent interactive skills to recognize the needs of the consumer and the ability to
gratify them with the exceptional delivery for services. Technology savvy: in the current scenario
as well as for the future it is important to have an outstanding grasp over the use of technology;
as it enhances the superiority of the services and maximizes the profitability. Teamwork: it is the
skill that is needed every field and it also important in this field to deliver exceptional services on
time. Crunch management: exceptional managerial abilities to handle and resolve the crisis is
very important for consumer satisfaction and profit maximization (Riley, 2018).
SERIES OF DIFFERENT OPERATIONAL ROLES WITHIN THE HOSPITALITY
INDUSTRY
Operational roles are the job profiles available in this sector; all these roles require exceptional
expertise in the communication and management and they are as follows:
Concierge: this role includes the first line of interaction with the consumers and it also requires
exceptional communication skills in order to enhance the value of visits. The ability to interact
well with the customers is essential for the growth of the business.
Event manager: the role of a manager is to manage any event planned effectively and as per the
demands of the consumers. They are needed to manage the end to end planning of an event and
effectively manage the happening.
Executive conference manager: the conference manager is responsible to execute the
conference in the best possible way and without any error and interruption. The executives are
responsible to be a participant in the task manager with the managers (Ram, 2018).
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Executive chef: The executive chef manages and executes all the operations related to food in
the hotels, restaurants and other places. It is the post received after lots of experience and
expertise gained as a line cook or other entry-level roles he is subordinated by the junior chef,
cook and other staff.
Account manager: the account manager is responsible to manage the budget and all financial
transaction in the business and understand the need of all departments and other units within the
business; plan the budget in a most profitable manner.
Marketing and promotion manager: This role requires the knowledge of dynamics of the
market and changes in the scenario and the need of the consumers from the diverse background.
Every organization pays attention to this profile in order to fill the gap in the production and the
sell; and also increase the market penetration of the existing products (Kandampully et al., 2015).
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EXAMINE THE SKILLS REQUIRED FOR ROLES WITHIN THE HOSPITALITY
INDUSTRY AND CURRENT SKILLS SHORTAGES
Skills needed for the role of manager and the executive are explained as follows and there are set
of skills that are suitable for different profiles and some set of skills suitable for managers and
some are suitable for the subordinate roles.
The skills for the managers:
Interpersonal skills: this field requires excellent interpersonal skills to recognize the needs of
the consumer and the ability to contain them with exceptional delivery for services.
Technology practicality: in the current scenario as well as for the future it is important to have
excellent command over the use of technology; as it enhances the superiority of the services and
maximizes the profitability (Riley, 2018).
Joint effort: it is the skill that is needed every field and it also important in this field to deliver
exceptional services on time.
Time management: it is the ability that is crucial for the profile of the manager and he or she is
required to manage the tasks as per the available time and manage the time in a way that does not
put any extra burden on the resources of the organization.
Emergency management: exceptional managerial abilities to handle and resolve the crisis is
very important for consumer satisfaction and profit maximization. To deal with the crisis is the
essential role of the manager as in their job they need to deal with emergency situations and
come out with the solution for the time being (Ram, 2018).
Skills for the cook, and front desk manager:
Chef: Awareness of sauces, equipment, food storing and they are required to understand the
culture and preference of the consumers of the diverse geographic region and plan their menu
accordingly.
Front desk manager and executive: Marketing skills, bookkeeping skills, acquaintance of
diverse languages, promptness are the essentials for the front desk manager and as they the first
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point of communication with the consumers and linguistic proficiency help in making the
interaction easy and let them understand about the products and services offered in the
organization and also to understand their needs.
Skills for the housekeeper: Use of cleaning means, technology in accommodations, job agenda
allocation and they are to be managed effectively in order to manage the business operations well
(Kandampully et al., 2015).
In the industry, in the current scenario, there is a gap between the set of skills available in the
workforce and the requisite set of abilities and they are: Excellent knowledge of geography and
culture of different regions and good command over the language is needed to interpret the needs
of the client form specific regions. The knowledge of internet utilities and digital platforms is
also very useful in gratifying the consumer and accommodate the need of the industry.
There are a list of reasons in the industry for the high attrition rate in the industry and skill
scarcity
 Low remunerations and isolating hours
 Discrimination for the availability of the opportunity
 Ambiguous trade policies and the absence of trade union
 Lack of incentives
 Dynamic nature of the sector (Dedeoğlu et al., 2015).

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APPRAISAL The ABILITIES GAPS WITHIN THE HOSPITALITY INDUSTRY WITH
RESPECT TO A VARIETY OF OPERATIONAL ROLES
The skill gap is illustrated as the range of skills available for a particular profile and the abilities
that are needed. So the difference between what is available and what is expected is attributed to
the gap in the industry and it is needed to be catered in order to enhance the profit maximization
and gratify the consumers. And the identification of the abilities available in the industry,
required in the industry is crucial for both the business as well as for the curricular designing
(Dedeoğlu et al., 2015).
Roles Expertise required
Chef Awareness of sauces, equipment, food storing
Front desk
manager and
executive
Marketing skills, bookkeeping skills, an acquaintance of diverse languages,
promptness
Housekeeping Use of cleaning means, technology in accommodations, job agenda allocation
Media
managers
Knowledge of various social media platforms and availability of the tools and
technologies; knowledge of marketing dynamics
Safety
manager
The familiarity of well-being norms and first aid; safety and security policy of
the organization
So as per the data gathered from various sources and conducting the research; it is identified that
the skill set required for the industry is still not enough to cater to the demand and generate the
output. So, the skill required in the manager is; exceptional communication abilities and know-
how of the field; and this role also require the know-how of technology to promote the offerings
in a timely manner; also ease the working of the business and it also eases the level of interaction
among the service seeker and providers More expertise is required to know about the culture of
different regions and the ability to provide the services according to the specific categorization.
Skills departments in the local and global economies needed to provide skills to improve
communication, the value of the Joint effort and the worth of a positive approach. There is also a
requirement of personnel with Proficient and ethical experts to maintain the ethical standard in
the industry (Wu, 2016).
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TASK C
This part of the assignment covers the influence of internal and external factors affecting the
operations and the functions of the hospitality industry in order to devise a strategy to overcome
them.
PESTEL: this analysis is undertaken to evaluate the influence of political, social, legal,
technological, environmental and economic factors on the hospitality industry
POLITICAL: the impact of the political factor can be illustrated as the change in the
government policies and procedures that regulate the industry and related industries. Health and
safety standards passed by; and food regulations of several departments are capable to impact the
functioning of the industry. The safety and standard mechanism in the UK are rigorous and
require compliance with the norms strictly and that impacts the flexibility of the business. This
sector is also impacted by the political factors like Brexit, immigration crisis, etc. but that is
controlled by the federal bodies by their effective measures and advances (Wun, 2016).
SOCIAL: the social factors that impact the business operations of the industry are the structure
of the society, their attitude towards work and the level of education and proficiency. These
factors are important to be analyzed to understand the need of the industry. and in the UK, there
is the availability of personnel as the level of education is higher and the willingness to work is
also high and that contributes to favorably (Breidbach et al.,2018).
ENVIRONMENTAL: this industry is largely affected by the environmental factors as there are
various rules and norms to protect the surroundings and it sometimes, give rise to the national
debate also. The environmental factors are air pollution; water pollution, carbon emission, and
other resources. The government of the UK has devised many laws to protect the environment
and it is also very important to comply with them as high penalties and punishment are imposed
on the business in case of violation of them (Horng et al., 2016).
ECONOMIC: the economic factors that influence the business operations in the industry are
change in the interest rates; exchange rate, food inflation, increased rate of taxation on luxury,
etc. are able to reduce the profit margin, effectiveness and productivity of the business and the
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rate of change in food inflation if goes high then impact the profitability and vice versa. And also
the exchange rate if in the favor of Euros then brings profitability or vice versa (Lee et al., 2013).
TECHNOLOGICAL: technological advancement plays a crucial role in the business
performance of the hospitality and many it is a technology-driven sector. Various products of the
industry are: travel, transport, food, rejuvenating service all are can be improved with the
technology and gadgets. For example, the room and accommodation services can be improved
with the use of cutting edge technologies to serve the customer as IoT. But it can also intrude
into the privacy of the consumers (Horng et al., 2016).
LEGAL: Health and safety standards passed by; and food regulations of several departments are
capable to impact the functioning of the industry. They are also comprised of the ethical
standards for the employees, employer, and the industry. There are rules to regulations to
maintain the safety and security of the employees, protection of their rights and compliance with
the norms for the health and safety at the workplace and the employment benefits. Every part of
the legislation is important to be complying by all stakeholders for achieving the ease of doing
business (Breidbach et al., 2018).
This analysis is useful for the industry and the organization to understand the need for change in
the business policies and the tools used for maintaining the functioning of the unit. the
organizations use a range of tools and techniques to examine and predict the impact of these
factors in their business model and the method are
 Comprehensive market analysis: the comprehensive market analysis is required to
examine, predict and suggest the changing dynamics in the sector. It can also provide
ways to handle those changes. It provides strategies and tactics to reduce the negative
impacts of these factors for long-term and improvise the positive impact.
 The use of technology is important to understand and analyze the patterns in the industry,
to reduce the hurdles in the growth and to improve compliance with statutes.
 The hiring of consultants and third parties to analyze PESTEL: this analysis is undertaken
to evaluate the influence of political, social, legal, technological, environmental and
economic factors on the hospitality industry
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 It can also be understood by taking the survey and preparation of the questionnaire to
investigate the factors form the user’s point of view.
 It can also be done by doing field or desk research of the marketing (Lee et al., 2013).
SWOT ANALYSIS
SWOT analysis: this analysis is effective in identifications of the strength and weaknesses of the
business model and the opportunities available in the industry and the potential threat to the
business model. This is very useful in understanding the need for change in the business plan and
integrates the effective changes.
STRENGTH WEAKNESS
 Strong capital strength
 Reputation and goodwill earned in the
market
 Experienced leadership and the
managers
 High brand value and brand image
 High consumer satisfaction
 Brand value sustenance efforts (Navío-
Marco, 2018).
 Lack of expansion of the business in
some areas
 Difficult business operations in some
regions especially the Middle East
region
 Increasing liability and limited scope to
reduce them in the short run (Alshehhi,
2018).
THREATS OPPORTUNITIES
 Opportunities in both global and local
market for business expansion
 An increasing number of the influx of
tourists and policies to accommodate
them
 High geographic expansion
 The threat of new and technologically
advanced entrants in the market
 The threat of availability of the
alternatives
 The threat of changes in the economic
situation and environmental changes
that affect the business operations
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