Hilton Worldwide Case Study: Hospitality Sector Analysis

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The Contemporary Hospitality Industry

Table of Contents
Introduction......................................................................................................................................3
LO1 Examine the current structure, scope, and size of the hospitality industry.............................4
P1 Explore the different types of business within the hospitality industry and the diverse
products and services they offer..................................................................................................4
P2 Examine a range of operational and functional departments within a chosen hospitality
business........................................................................................................................................5
P3 Discuss the contribution of the hospitality industry to local, national and international
economies....................................................................................................................................6
M1. Review the interrelationships of the operational and functional units within a chosen
hospitality business......................................................................................................................9
M2. Assess how the use of franchising and licensing agreements have influenced the global
development of the hospitality industry....................................................................................10
LO2. Explore current and anticipated skills requirements in the hospitality industry..................11
P4. Investigate a range of different operational roles within the hospitality industry...............11
P5. Examine the skills required for roles within the hospitality industry and current skills
shortages....................................................................................................................................13
M3. Review the skills gaps within the hospitality industry in relation to a range of different
operational roles.........................................................................................................................14
LO3. Review the internal and external factors that impact the hospitality industry and how they
relate to current issues facing the hospitality industry...................................................................15
P6. Assess the political, economic, social, technological, legislative and environmental factors
that affect the development of organizations operating within the hospitality industry............15
P7. Undertake a SWOT analysis for the hospitality business and review how this can inform
the decision-making process......................................................................................................22
LO4. Analyze the current and potential trends and developments affecting the hospitality
industry..........................................................................................................................................26
P8. Appraise the implications of current and potential trends in the hospitality industry
providing a range of specific examples.....................................................................................26
M4. Evaluate the impacts of external factors on the development of organizations operating
within the hospitality industry, using specific examples...........................................................27
LO4. Analyze the current and potential trends and developments affecting the hospitality
industry..........................................................................................................................................29
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P8. Appraise the implications of current and potential trends in the hospitality industry
providing a range of specific examples.....................................................................................29
M5. Evaluate the ability of specific hospitality business to develop products and services to
meet current trends....................................................................................................................33
Conclusion.....................................................................................................................................37
References......................................................................................................................................38
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Introduction
In this assessment, the knowledge of the hospitality industry is explained with the reference of
Hilton Worldwide. This is a hospitality brand which is located in several countries and serving
many customers by their hospitality services. This assessment defines the structure and scope of
future for the Hilton Company by using SWOT and PESTLE analysis. All the current and
political trends will be identified for the hospitality brand.
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LO1 Examine the current structure, scope, and size of the hospitality
industry.
P1 Explore the different types of business within the hospitality industry and the
diverse products and services they offer.
Figure 1: Hospitality Industry
The hospitality industry includes different sub-industries. The hospitality industry includes food
services, hotels, events, travel and tourism, and luxury services. These sub-industries provide
different services including customer services, entertainment, revenue management, pubs, etc
(Kasim, et al., 2018).
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P2 Examine a range of operational and functional departments within a chosen
hospitality business.
Figure 2: Functional and Operational Areas of the hospitality industry
Functional are operational areas are an important part of the hotel industry. Functional areas
mainly act as a backbone for the operations of the hospitals. Functional areas include rooms
division, sales, and marketing, human resources, accounting, food, and beverages, etc.
Operational areas help in successful operations in the hotel. Operational areas include front desk
services, maintenance, etc. These areas help to create different job opportunities in the hospital
industry.
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P3 Discuss the contribution of the hospitality industry to local, national and
international economies.
Table 1: Fact Sheet
Fact sheet
The hospitality industry is the third biggest
employer in the united kingdom.
This accounted for 3.2 million jobs in the
year 2017 and 2.8 million indirect jobs.
This help to generate £72bn of Gross Value
that is added into the UK economy directly
and £72bn gross value indirectly.
In the year 2004, the yearly turn over for the
united kingdom catering industry was £3.89b
About 500,000 people do full time or part-time job in the hospitality sector
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This is also the most significant area to work
for women. 46.1% of women work in the
hospitality sector directly or indirectly.
It also provides employment to the unreduced people. 30% of people working in this industry
have lower secondary education.
(Kim, et al, 2017)
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Figure 3: Fact Sheet of the Hospitality Industry
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M1. Review the interrelationships of the operational and functional units within a
chosen hospitality business.
The industry of hospitality is continuously increasing and is one of the fastest-growing industries
that are earning the revenue by providing the services of quality to the customers. The hospitality
company that is taken here is HILTON that is one of the most renowned and great hospitality
company which provide great hospitality to the people across the world. To handle this myriad
number of people, work after to make this successful. The two essential units of the HILTON
that are operational and functional are discussed here in this part.
The operational unit and functional unit are interrelated with each other as it provides the overall
outcome of the hospitality and leads to attracting more customers.
The role of the operational unit of the company is to take care of the food and beverages, about
the room services, maintenance of the infrastructure and many others. Similarly, the functional
unit of the company takes part in handling the customers’ data, their payments and feedbacks and
to work on the provided feedbacks (Myung & Li, 2015).
These two points combinable and reflect the overall hospitality of the company.
The fact sheet is provided here:
Executive management Property, Rooms,
and Employees
Hotel Brands Properties in these
brands
Barron Hilton
Co-Chairman
Hotels: 2,244 Hilton 232 properties/89,646
rooms
Dieter Huckestein Executive
Vice President and President - Hotel
Operation Owned & Managed
Rooms: 356,524 Conrad Hotels,
Non-Branded
Properties
17 properties/5,443 rooms
Matthew J. Hart
President and Chief Operating
Officer
Countries: 9 Doubletree,
Doubletree Guest
Suites, Doubletree
Club Hotel
154 properties/40,599
rooms
Stephen F. Bollenbach Co-
Chairman and Chief Executive
Officer
Team members: 70,000 Embassy Suites
Hotels
175 properties/42,718
rooms
Thomas L. Keltner
Executive
Vice President and President - Brand
Performance & Franchise
Development Group
Hotels under franchise:
161
Hampton Inn,
Hampton Inn &
Suites
1,284 properties/129,846
rooms
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M2. Assess how the use of franchising and licensing agreements have influenced the
global development of the hospitality industry.
Franchising and licensing are two different methods through which a business can be built more
in minimum investment. These two methods are providing a great impact on the business of
hospitality. Franchising method is impacting on employment globally. By the opening of a new
franchise of a company, more employment can be provided across the globe, franchising help in
economic modernization globally, it also helps in rising of the tax revenue as the international
franchisors are diverse and raise the tax through involvements. Also, it helps in the
entrepreneurial development of a country. So, it has many benefits globally.
Now let’s talk about the licensing there are various benefits of the licensing as well. Here the
owner will allow the license for exploiting the trademark right in some areas where the
appropriate infrastructure and expertise are available in the maximum amount. This allows the
company to enjoy the popularity and increment in sale in maximum amount so this affects the
revenue as well as the fame of the company. Globally this benefits the customers to enjoy
hospitality across the world (Huang, et al., 2016).
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LO2. Explore current and anticipated skills requirements in the hospitality
industry.
P4. Investigate a range of different operational roles within the hospitality industry.
There are many roles in the hospitality industry that are related to the operational unit of the
HILTON Company. Here there are seven basic roles that are discussed in detail:
Housekeeping:
This role is given to employees for maintaining the rooms of the guest clean and proper which is
one of the most essential tasks. Housekeeping is a huge responsibility that reflects the services of
the hospitality and it includes cleanliness of the room from every detail to sheets to toiletries
checks.
Maintenance:
This includes maintenance and keeping the best utilities and electronics in the rooms. This
includes the proper functioning of the electronics systems like televisions, DVD’s, Games
consoles and all the present technology should work properly. In case anything found
malfunctioned than it needs to repair and provide the facility to the guests as soon as possible
(Zaitseva, et al., 2016).
Executives:
Executive’s plays and handle a major role in the hospitality business as all the problems that the
guest faces will complain to the executives. Executives in this industry may vary according to the
size of the business. Mainly it includes the department head, directors and managers.
Front Desk Services:
These employees work for guest and keep direct communication with them so that in case of any
complaint the guest can feel welcome to talk and eliminate the problems. They basically include
the assistant manager, receptionist or manager; this may vary according to the requirement and
size of the business.
Kitchen Staff:
This includes the restaurant and food providing the department of the business that handles the
catering of the guests. It includes the food manager, chef, Catering manager and much such staff
that take cares of the catering of guests (Ramanathan, et al., 2016).
Marketing:
The marketing and promotions are essential tasks that a business need so the marketing team is
responsible to handle and promote the business by using social media and other technology. It is
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