The Contemporary Hospitality Industry: Business, Economy & Ritz Hotel

This report provides a comprehensive overview of the contemporary hospitality industry, examining various business types, their diverse products and services, and their significant contributions to local, national, and international economies. It delves into the operational and functional departments within The Ritz Hotel, London, and investigates a range of different operational roles within the hospitality sector, including the skills required and current skills shortages. The report further includes a PESTLE and SWOT analysis of The Ritz Hotel, London, providing insights into its strategic environment and internal capabilities. Finally, it appraises the implications of current and potential trends in the hospitality industry, offering a holistic understanding of the sector. Desklib offers similar solved assignments for students.

The Contemporary Hospitality
Industry
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Table of content
Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Explain various types of businesses within the hospitality industry along with the diverse
products and services that they offer...........................................................................................3
P2 Discuss the contribution of hospitality industry to local, national and international
economies....................................................................................................................................5
P3 Examine the range of operational and functional departments within The Ritz Hotel..........7
TASK 2............................................................................................................................................8
P4 Investigate a range of different operational roles within the hospitality industry..................8
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages......................................................................................................................................9
Task 3.............................................................................................................................................11
P4 PESTLE analysis of Ritz Hotel London...............................................................................11
Task 4.............................................................................................................................................11
P5 SWOT analysis of Ritz Hotel London..................................................................................11
P6 An appraisal of various implications of current and potential trends in the hospitality
industry......................................................................................................................................11
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12
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Introduction
The hospitality industry has various diversities due to the innovation level at the
organisation, ownership, classification, grading system leisure facilities, service levels, future
trends, etc. There are various types of hotels that aim to provide standard services to the guest.
Hospitality industry is being considered as the industry that has its major contribution towards
the revenue generation in various economies of various countries. Though Hospitality industry is
basically an important element of travel and tourism industry, but it is also considered as a major
independent sector as well (Ali and et.al., 2019).
In order to complete this report on the topic, 'The contemporary hospitality Industry' the
primary organisation considered for the study is The Ritz Hotel, London. The Ritz hotel, London
is a UK based hospitality organisation that is located in Piccadilly, England. It is a Grade II listed
5 star hotel. The owner of The Ritz Hotel London is Abdulhadi Mana Al-Hajri and it was
established in the year 1906.
Task 1
P1 Explain various types of businesses within the hospitality industry along with the diverse
products and services that they offer.
The hospitality sector business is often linked with the tourism industry as well. The
reason behind the linkage is that the money that is made by hospitality is due to the tourists that
travel the places and thus is a major source of revenue generation for the various businesses. This
further helps in enhancing the economy of the United Kingdom as the government is also
earning through taxes. The commercial sector within the hospitality industries are established
with an aim to earn profits through their business activities. There are various businesses under
the hospitality commercial sector such has Bistros, Cafes, fast food outlets or takeaways, guest
houses, Hostels, hotels, Motels, Public houses or Inns, Restaurants, street food stall and wine
bars. The main motive of the commercial sector hospitality organisations is to serve their
customers in order to provide them with satisfaction and generate revenues. There are various
types of hospitality businesses that have been discussed below (Ann and Blum, 2020).
 Within food service sector- The hospitality businesses also have a stream that deals in
food service sector. The hospitality business organisations that deal in food, tend to
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satisfy their customers by their food and beverages. There are various variants of food
service sectors which have not been specified yet and hence it is always considered as
the hidden side of the hospitality. Restaurants and hotels receive stars and plaudits, also
there are chefs that are involved in the business and industry that work in accordance
with the Michelin standards. There are various members clubs that operate at the same
high level. The need for food service sector is driven by various organisations such as
business and industry, Casinos, colleges, old people's home, prisons, retirement villages,
Schools, garden centres, sports stadium, Heritage, etc.
 Accommodation businesses in the hospitality industry- It is very commonly known
that hospitality sector is not just in context of food, but accommodation is also a very
important part of the hospitality industry. Similar to the restaurants, even accommodation
facilities have various levels of operations (Baum, 2019). The various accommodation
businesses that are operated have been categorised as dormitories, Halls of residence, Bed
& Breakfast, Guest houses, Un-graded hotels, 1 star hotels, 2 star hotels, 3 star hotels, 4
star hotels, 5 star hotels, 6 star hotels, 7 star hotels and 8 star hotels. There is only one 8
start hotel in the world and that is situated in Dubai. Among these, Dormitories and Halls
of residence do not offer food whereas various guest houses and Un graded hotels operate
on the basis of providing rooms. For most of them, the primary mode of revenue
generation is rooms but they also provide food and beverages as a supplement source of
income.
 Event sector- The third branch of hospitality sector is the event sector organisations. In
the event sector organisations, apart from traditional conferences and banquets the offer
various events like seminars, shows, exhibitions, meetings, incentive travel, product
launches, etc.
As discussed above, it can be analysed that all the three sectors i.e. food and beverages,
event and accommodation have a link between them. The main reason behind the link is that
there an accommodation and an event can not happen without providing food and beverages.
These offer nearly same products and services but is considered diverse in terms of quality that
they offer (Bowen and Morosan, 2018).
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P2 Discuss the contribution of hospitality industry to local, national and international economies.
The revenue generation at the hospitality is due to the tourists that travel the places and
thus is a major source of revenue generation for the various businesses. This further helps in
enhancing the economy of the United Kingdom as the government is also earning through taxes.
The hospitality industry contributes towards the various economies in aspect of local, national as
well as international economies. The contribution of the hospitality sector have been discussed
below in aspect of various economies (Chon and Zoltan, 2019).
Contribution of hospitality industry to the economy of the United Kingdom
The contribution of hospitality industry towards the economy of the United kingdom has
been quite significant. The contribution of the hospitality sector towards the local economy of
the United Kingdom has been discussed below.
 It has been found that there are approximately 10000 hotel businesses in the whole
United Kingdom. The businesses of hospitality sector have a contribution of about £ 18
Billion towards the economy of the UK.
 It has been found in a research that meetings or couple dates have alone contributed
towards the economy have contributed an amount of £ 1.3 billion through the hospitality
and entertainments services. Also, the hotels of United Kingdom in terms of United
Kingdom have alone made a contribution of 18% in the entire service industry of the
United Kingdom along with the distribution.
 The British hospitality Association has found that the hospitality industry is capable of
employing approximately 2.5 million people in a direct manner. Further, the hospitality
industry has been providing £ 46 billion in form of wages and profits towards the local
economy. The hospitality sector has been playing the role of employment generator in
various local authorities. In most of the cases, the hospitality sector organisations have
employed people from the local work force only (Drexler and Lapré, 2019). When it comes to the indirect financial contribution of the hospitality sector along with
the the direct financial contribution, the hospitality industry has given a contribution of
approximately 40% revenue generation in the local region of United Kingdom.
Contribution of hospitality industry to the economy of Europe
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The contribution of hospitality industry towards the economy of Europe has been quite
significant. The contribution of the hospitality sector towards the regional economy of the United
Kingdom have been discussed below.
 It has been observed that Europe has witnessed approximately 479 million internation
tourists in the year 2015. It has been observed as the number one tourist destination in the
world. Also, the internal tourism receipt of the United Kingdom has amounted to 337
million Euros in the year 2015 (Filimonau and Brown, 2018).
 The hospitality sector is considered as the key driver towards the economy of the
European Economy as well as the European tourism. The contribution of the hospitality
sector has been direct as well as in terms of employment opportunities as well, in the
European Economy. Along with the tourism sector, The hospitality sector can be
considered as the third largest socio- economic activity in the European economy.
 It has been found in the study that every one in ten organisations of the European non
financial business economy belongs to the tourism industry of Europe. The hospitality
sector has approximately 80% contribution towards the employment generation
opportunities at the European Union tourism workforce. Europe comprises of over 1.9
million enterprises and out of which 90% organisations are a part of micro enterprises
that have employment capacity of less than 10 people.
 The hospitality business is solely responsible for generating over 11 million job
opportunities directly and it comprises of almost 5% of total employment ratio in the
European Union as a whole. The hotels, restaurants and bars have been responsible for
employing approximately 3% more people in the first decade of the millennium, on the
year to year basis. Hence it has employed nearly 2.5 million people through jobs.
Hence, it has been analysed that hospitality sector has been contributing towards the growth of
the European economy by 0.7% through every passing year.
Contribution of hospitality industry towards the international economy
The contribution of hospitality industry towards the International economy has been quite
significant. The contribution of the hospitality sector towards the International economy has been
discussed below (Gupta, 2019).
 The hospitality sector has been generating employment opportunities across the various
international economies in form of direct as well as indirect impact. The direct impact
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states that employment and related activities have been generated and perform within the
hospitality sector whereas the indirect impact is in context of purchase of goods and
services from the suppliers of the United Kingdom. These mainly include food,
beverages, agriculture as well as various business services.
 The contribution of hospitality sector upon the international economies have been
through the induced impacts as well. The induced impacts states that employment and
related activities within the hospitality industry along with its direct supply chain tends to
spend a proportion of their wages in terms of consumer goods and services. It ultimately
leads to stimulation in the economic activity in the retail and leisure outlets along with
the various supply chains (Hassi, 2019).
 The hospitality sector has been contributing towards the international economies with the
help of employment, taxation, exports as well as investments. Employment opportunities
in the hospitality sector are temporary as well as seasonal whereas the taxation covers
revenue streams that are generated from the respective government. Investment is
basically the capital expenditure whereas exports accounts of overseas or international
exporters.
P3 Examine the range of operational and functional departments within The Ritz Hotel.
The various ranges of operational and functional departments that are within the Ritz Hotel
have been discussed below.
Operational department at Ritz Hotel
 Housekeeping department- The housekeeping department at Ritz hotel makes sure that
the passages, room, hallways are clean and ready to use for the customers or the visitors.
 Food production department- The food production department at Ritz hotel deals with the
production of food and kitchen operations at the hotel.
 Food and beverage counters- The food and beverage counters are responsible for
ensuring the availability of the food and beverages in an optimum quantity.
 Front office departments- The front office department deals with the customer interaction
and customer service at The Ritz hotel London (Horng and et.al., 2018).
Functional department at Ritz Hotel
 Marketing department- The marketing department is responsible for ensuring that the
organisation is properly visible among the customers in order to survive in the market.
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 Human resource department- The human resource department of the Ritz hotel is
responsible for ensuring that accurate and effective personnel is being hired in the
organisation (Jones and Comfort, 2020).
 Purchase department- The purchase department at Ritz hotel is responsible for ensuring
that the organisation is capable of Buying the raw material and products in required
quantity and also ensures optimum utilisation of resources.
 Accounting and Finance department- The accounting and finance department is
responsible for ensuring that the cash flows of the organisation are being generate
smoothly.
TASK 2
P4 Investigate a range of different operational roles within the hospitality industry.
The hospitality industry basically comprises of wide range of businesses. The most
common or popular types of businesses include restaurants, bars, resorts, casinos, cruise ships,
theme parks, etc. The common characteristics among all the business types are hosting people
who visit the place to drink, sleep and eat. The guests are entertained at the hospitality
organisations and thus they offer hospitality. The hospitality industry comprises of various kinds
of job roles in the industry. The various operational job roles have been discussed below.
 Wait staff and bartenders- There is a majority of work force that is employed in food
service industry as the waiters or waitresses. The various job positions under food service
comprise of bus boy as well as restaurant host and hostess. Also, a majority of workforce
also serve as bartenders. The related job positions include wait staff, mixologists, bar
backs. These job holders are responsible for keeping the bar with alcohol, glasses and
various other supplies (Menicucci, 2018).
 Food preparation staff- Food is a huge component of the hospitality industry and hence
various staff is required to operate a kitchen. The various job titles under food preparation
staff include cook, baker, line cook, chef, head chef, prep chef, wine specialist, etc.
 Support staff- Almost all the industries requires a support staff in order to play the role of
marketing, sales as well as management staff. Support staff is considered as the most
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essential part of the hospitality industry. The support staff comprises of maintenance staff
as well as cleaning staff along with administrative staff.
 Sales and marketing staff- The sales and marketing staff helps the organisation in order to
survive in the market (Miao, Humphrey and Qian, 2021). The various job titles in the
sales and marketing include public relations manager, sales manager, marketing manager,
special events manager, etc.
 Management staff- In order to guide, manage and control the hardworking employees of
the organisation, it is essential for the organisation to employ executives and managers.
The various titles under this head include general manager, director of hotel operations,
executive chef, human resource manager, chief information officer, IT manager, etc.
 Event planning- Another operational job role that is a crucial part of the hospitality sector
is event planning. Event comprises of catering, florists, DJ services as well as venue
rental businesses. The operational job role is suitable for the people who wish to have
career in the wedding or party planning and they can have a great time to gain skills as
well as experience.
P5 Examine the skills required for roles within the hospitality industry and current skills
shortages.
Hotel operations perform an important role for the management to attract more number of
customers. According to the current scenario, various operations are performed by management
of Ritz Hotel and it includes human-resources, housekeeping, public-relations, etc. For perform
all functions this is important that all important skills are engaged in order to complete work with
decided schedule. Furthermore, skilled variations in hospitality industry also impacts on
company goals and it engage skilled job role, semi-skilled job role and unskilled job role. Some
important skills required by hospitality industry are mention as follow:
 Skilled Job Role- This role includes excellent customer service skills, attention related
with details, team-work and accountants. All of them are engaged in Ritz hospitality
functions. In simple terms, high skills are required by management to perform their work
in proper manner (Varga, and et.al., 2021).
 Semi-skilled Job Role- Work among this level relates with manipulative skills like,
cooking, housekeeping, supervisor and many more.
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 Unskilled Job Role- Door Man, cleaner, etc. are the job roles and they are performed by
unskilled workers. So this is easy for Ritz hotel to engage more persons in the
organisation.
Some skills important to perform the hospitality roles are mention as follow:
HARD SKILL
 Commercial Accountability- Accounts at the commercial level perform an important
role for management but they are highly skilled so this is important for Ritz hotel to
engage effective persons within business. In the present scenario, budget perform an
important role to retain at top position so commercial accountability is important skill to
engage in respective organisation.
 Human-resource management- The current hospitality industry and organisation
engage a large number of individuals so this is essential for Ritz Hotel to engage effective
workforce. This define that performance review, disciplinary process, procedures, etc. are
important skills to learn. To manage human-resources in proper manner all skills are used
to induce.
SOFT SKILL
Skills perform an important role to accomplish company goals and objectives and in context of
this soft skills are crucial part of management because hospitality industry is based on service
sector. So with engage of soft skills individuals ability to person work with positive connections
is improved.
 Professional Manner- This is important for manage work in a professional manner so
the first crucial factor related with management is to engage professional skills that
match with the business standards of industry.
 Planning, directing and organising services- Plan start with the formulation of task
that how to prepare them in order for completion of this according to decided goals.
Organising refers to manage plan in order to arrange task appropriately. From
perspective of Ritz hotel soft skills is used for prepare backup plan in order to sustain
among future for longer period (Wang and Xie, 2020).
SKILLS SHORTAGE- Hospitality as well as other industries face various challenges because
more persons are engaged in theoretical knowledge. While, hard skills are more based on
practical factors so this is confusing for Ritz Hotel to perform work with less skilled workforce
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in proper manner. Also, complexity of professional course create problems to recruit right skilled
employee in company.
Task 3
P4 PESTLE analysis of Ritz Hotel London
(Covered in PPT)
Task 4
P5 SWOT analysis of Ritz Hotel London
(Covered in PPT)
P6 An appraisal of various implications of current and potential trends in the hospitality industry
(Covered in PPT)
Conclusion
It can be concluded from the study that hospitality industry is among the most successful
industries. Hospitality industry is being considered as the industry that has its major contribution
towards the revenue generation in various economies of various countries. Various types of
hospitality industry businesses have also been discussed in the report. The industry has a huge
contribution towards the regional, local as well as international economies. The report has
discussed the various operational roles that fall under the hospitality industry. Also various
operational and functional departments have been highlighted in the report that is a part of the
primary organisation.
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REFERENCES
Books and Journals
Ali, F. and et.al., 2019. 30 Years of contemporary hospitality management: uncovering the
bibliometrics and topical trends. International Journal of Contemporary Hospitality
Management.
Ann, S. and Blum, S.C., 2020. Motivating senior employees in the hospitality industry.
International Journal of Contemporary Hospitality Management.
Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal of
Contemporary Hospitality Management.
Bowen, J. and Morosan, C., 2018. Beware hospitality industry: the robots are coming.
Worldwide Hospitality and Tourism Themes.
Chon, K.K.S. and Zoltan, J., 2019. Role of servant leadership in contemporary hospitality.
International Journal of Contemporary Hospitality Management.
Drexler, N. and Lapré, V.B., 2019. For better or for worse: Shaping the hospitality industry
through robotics and artificial intelligence. Research in Hospitality Management, 9(2),
pp.117-120.
Filimonau, V. and Brown, L., 2018. ‘Last hospitality’as an overlooked dimension in
contemporary hospitality theory and practice. International Journal of Hospitality
Management, 74, pp.67-74.
Gupta, V., 2019. Talent management dimensions and their relationship with retention of
Generation-Y employees in the hospitality industry. International Journal of
Contemporary Hospitality Management.
Hassi, A., 2019. Empowering leadership and management innovation in the hospitality industry
context: The mediating role of climate for creativity. International Journal of
Contemporary Hospitality Management.
Horng, J.S. and et.al., 2018. Developing a sustainable service innovation framework for the
hospitality industry. International Journal of Contemporary Hospitality Management.
Jones, P. and Comfort, D., 2020. The COVID-19 crisis and sustainability in the hospitality
industry. International journal of contemporary hospitality management.
Menicucci, E., 2018. The influence of firm characteristics on profitability: Evidence from Italian
hospitality industry. International Journal of Contemporary Hospitality Management.
Miao, C., Humphrey, R.H. and Qian, S., 2021. Emotional intelligence and job performance in the
hospitality industry: a meta-analytic review. International Journal of Contemporary
Hospitality Management.
Varga, S. and et.al., 2021. Employee perceptions of wellness programs in the hospitality
industry. International Journal of Contemporary Hospitality Management.
Wang, Z. and Xie, Y., 2020. Authentic leadership and employees’ emotional labour in the
hospitality industry. International Journal of Contemporary Hospitality Management.
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