Analysis of the Contemporary Hospitality Industry: A Report

This report provides a comprehensive analysis of the contemporary hospitality industry, focusing on the diverse range of businesses, including lodging, food and beverage, and travel and tourism. It examines the operational and functional departments within a specific hotel, Royal Lancaster London, highlighting the roles and responsibilities at strategic, operational, and tactical levels. The report assesses the direct and indirect impacts of the hospitality industry on local, national, and international economies, emphasizing employment opportunities and contributions to GDP. Furthermore, it explores various operational roles within the industry, such as line managers, receptionists, and housekeeping staff, along with the required skills and current skill shortages. The report also touches upon the use of PESTLE and SWOT analyses for organizational development, and concludes with an examination of current and potential trends shaping the future of the hospitality sector.

Contemporary Hospitality Industry

Table of Contents
TASK 1 ...........................................................................................................................................3
P1 Various kind of businesses within hospitality and offers products and services...................3
P2 Range of operational or functional department within Royal Lancaster London..................4
P3:Direct and indirect impacts of hospitality industry on UK economy and other countries
also..............................................................................................................................................6
TASK 2............................................................................................................................................6
P4: Range of different operational roles within industry............................................................6
P5: Skills required for roles and current skills shortages............................................................7
TASK 3............................................................................................................................................8
P6 Access to the Pestle analysis for development of the hospitality organisation......................8
P7 Undertaking of the SWOT analysis and review on decision making process.......................9
TASK 4..........................................................................................................................................10
P8 Implication of the current and potential trends in the hospitality industry..........................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
One of the fastest growing industry in the world is hospitality industry. Competition in
this sector is very high in comparison of others because there are only few number of business
ventures are established in other sector. Hospitality industry includes several business ventures
like restaurants, pubs, hotels, tour operators etc. All of these ventures are established for
satisfying the needs of customers. Chosen firm for this report is Royal Lancaster London which
is a hotel and was founded in 1967. There are around 411 rooms or suits which are offered by
hotel to its guests. Present report will discuss about the several kind of business in hospitality
industry along with diverse products and services which are offered by them. Operational and
functional department of hospitality firm along with contribution of hospitality industry in
growth and development of local or international economies. At last, current and future trends in
hospitality sector will be discussed.
TASK 1
P1 Various kind of businesses within hospitality and offers products and services
Hospitality sector plays very important role in growth and economy of a nation in form of
fulfilling the needs of visitors of other nations. Growth and success of hospitality industry is very
much depending on satisfaction of customers. There are several kind of businesses works under
the hospitality sector which are discussed as below with their offerings:
Lodging Accommodation: These kind of services are provided by hotels, resorts, Motels
etc. to their customers. Hotels like Royal Lancaster London have duty to provide effective
quality in services to their customers so that positive brand image of hotel will be built in the
mind-set of customers.
Food and Beverage: This kind of services are provided by restaurants, fast food chains
to the customers. Some categories of this department are given as below: Quick Service Establishment: In it, quick services are provided to customers like drinks
or food products with few employees (Lopes, 2016). Catering Businesses: This kind of services are offered by food and beverage department
to their customers at the time of special occasion such as wedding or birthday parties

 Full Service Restaurants: These provide full meals to their customers like main course,
breakfast or lunch. Most of the individual visits in other locations so as to enjoying new
food products.
Travel and Tourism: This sector offers several kind of services like airlines, trains, road
transportation so as to fulfilling travelling purposes of customers. This sector also plays very
supportive role in growth of hospitality industry because it offers tour packages to customers at
lower prices so that they can get attracted and stays in hotel and eat food in restaurants. Some
other services which are provided by this sector are given as below: Marinas: In it, a separate yacht is provided by tour operators to the group of travellers on
their specific needs so that they can easily enjoy their travelling.
 Sports and Gaming- It includes casinos, pools, game parlour which are provided by them
to the visitors for their enjoyment.
Hospitality sector also offers several products and services like lodge, suits, online
booking, seminar halls, laundry etc. to their visitors so that unforgettable experience can be
provided to them during their stay.
P2 Range of operational or functional department within Royal Lancaster London
There are several departments which performs their duties under the hospitality sector.
Contributions of these departments are very important because without their efforts Royal
Lancaster London can't operates its functions in smooth manner. Some of these departments are
given as below:
Strategical Level – This level is formed within the workplace of firm for making
strategies and providing the ways in which these decisions will be implemented (Radojevic,
2015). Some of the members which are working under this level are given as below:
 CEO – It is the governing authority of firm whose decisions are necessary to follow for
working staff. Main responsibilities of these persons are to make corporate decisions so
that good position can be achieved by the firm in marketplace.
 BOD – Main duties of these members within Royal Lancaster Hotel is to monitoring
functions and activities of firm and take regular meetings of managers of several
departments so that growth of firm can be maintained in marketplace. General Managers – General managers of Hotel Royal Lancaster have duties of
overseeing or managing all administrative functions. There are several departments are

working within the Hotel like HR, Front Desk, Housekeeping etc. and all these
departments have duty to managing all the functions effectively so that organisational
goals can be achieved within pre-determined time-frame.
Operational Level: Main functions of these department is to design or control the
business operations. Main members of these department are given as below:
 Line managers – They are those who have to act as a communication system between
the management and their subordinates. Main responsibilities of these are to manage or
monitor all the implemented strategies of strategical level managers at the workplace. Staff members – They works like a backbone within the organisation because without
their efforts any organisation can't survive or sustain in marketplace. Therefore, it is
essential for the management of Royal Lancaster to consider their needs and demands so
that their better contributions can be taken for achievement of organisational goals (Šerić,
2014).
Tactical level - This level includes several departments or staff members which are
necessary for managing or executing all activities or functions as per the taken decisions or
formed strategies of operational level managers. Some of the departments and their
responsibilities are given as below: Finance mangers – Managers of This department have to regulate financial activities of
Royal Lancaster, London. With the help of efficient employees which are recruited by
HR department. Main responsibilities of this division is to manage cash receipts,
operating data or financial reserves of Royal Lancaster.
 HR Manager: These managers are responsible for hiring or recruiting new employees
within the workplace. Managers of HR department have also liability to analyse the needs
of human resources at workplace and fulfil it through finding efficient employees.
By taking support of several level, Management of Royal Lancaster can easily achieve
their organisational goals effectively.

P3 Direct and indirect impacts of hospitality industry on UK economy and other countries also
Hospitality industry is growing rapidly across the world which is contributing 10% in
GDP of the world. Hospitality sector is rapidly growing at global level and promoting the growth
of cultural environment. Royal Lancaster Hotel London is operating in two nations like Bangkok
and London. Contributions of the hotel in growth of local national or international economies are
given as below:
Local economy- Through satisfying needs and wants of individuals, Royal Lancaster
London is contributing very much in growth of local economy of London. By evaluating the
surveys, it has been identified that cited firm have highly professional staff members and they
highly dedicated for fulfilling demand of the guest of firm. As customers are highly satisfied
from the services of firm then they provide positive online reviews due to which high
contribution is provided by firm in growth of local economies.
National economy- Royal Lancaster London provides high employment opportunities to
various individuals so that their living standard can be improved. They also offer attractive salary
packages to the experienced and skilled candidates so as to taking their efforts for smooth
functioning of firm. It has been also identified that respective firms have provided 330 new jobs
in UK nation (Wang, 2016).
International economy - Hospitality industry provide very much contribution in growth
of international economy in form of incorporating new job opportunities for unemployed people
across the world. As Royal Lancaster London is operating in approx two nations like UK and
Bangkok then they have duty to provide employment opportunities to local individuals as much
as possible. So that, it can be said that hospitality industry provides too much support in growth
of international economy.
TASK 2
P4: Range of different operational roles within industry
There are several departments which are working within the Royal Lancaster hotel and
these departments are controlled or managed by several individuals. In addition, all of these
individuals have some roles which are necessary to perform. These roles are receptionist,
security, engineering and other staff members which are given as below:

Role of line manager: They have responsibility to guide and supporting the employees of
different departments such as front desk or housekeeping department so as to making impressive
brand image of firm in mind-set of customers. They also make coordination with these staff
members so that good communication can be maintained and impressive services are provided to
visitors at Royal Lancaster, London.
Role of Receptionist: They have duty to provide effective services to their guests because
they are the one who have to meet the visitors on the behalf of firm firstly. Therefore, they have
liability to manage all the functions like coordinate with housekeeping staff members so as to
managing cleanliness in rooms, monitor check-in and check-out of visitors. They have also duty
to provide all necessary information’s to the visitors which are wanted by them
Role of Housekeeping: They have duty to maintain cleanliness in whole workplace of
Royal Lancaster London. They have also duty to monitor cleanliness and provide effective
laundry services to their customers so that brand image of hotel can be maintained in mind-set of
customers. Clean rooms are very important for attracting large number of customers towards the
hotel therefore, it is essential for housekeeping department to maintain cleanliness within the
workplace of Royal Lancaster, London so that revenue and customer base of firm can be
enhanced in marketplace (Huang, 2016).
P5: Skills required for roles and current skills shortages
In order to achieve the target it is necessary for the employees of Royal Lancaster Hotel
London that they must have some sort of skills and talent so that it will be easy for them to
enhance their performance. It has been identified that some skills of staff members like technical,
management or communication of Royal Lancaster are lacking due to which they are not able to
perform their duties in well manner. Therefore these skills are required by the employees of
Royal Lanchester London which are discussed as below:
Technical skills: In context of Royal Lancaster Hotel London, their IT department is
required to have technical skills so that they can have an overview on each and every security
department so that better results can be obtained. This is help management team to build trust
among the guest who visits the hotel.
Management Skills: It is one of that skill which is very essential to have in every
department because it tells management team that how they are required to work so that effective
results can be obtained. In context of Royal Lancaster Hotel London, if they will be able to

improve their management skill then they will easily provide more satisfaction to their
customers.
Communication Skills: In context of Royal Lancaster Hotel London, they are required
to have communication skill because it well help them to add on the additional number of
customer in future. This skill will help staff to provide better services in future.
TASK 3
P6 Access to the Pestle analysis for development of the hospitality organisation
Pestle analysis is a framework or tool which is used to do analysis and monitor macro
environmental factors that may have a profound impact on a business performance. In contrary,
this tool is useful, when starting any new businesses or while entering in a foreign market. In
context of Royal Lanchester London, the Pestle analysis for this hospitality industry are as under:
Political: Positive and pragmatic level of collaboration with UK government will bring
hospitality industry into the success environment of the UK on a productive manner. In the UK,
where political parties are leading or changing scenario of politics or its regulation such as flux
in government continuity, imposition of the taxation etc., has simply effected business
performance of the Royal Lanchester because the firm is operating its business operations in UK
then they have to follow regulations which are formed by government of UK nation.
Economic: It includes factors such as taxation charges, inflation rates, economic growth,
exchange rates etc., which has impacts on economic strengths of the Royal Lanchester to operate
s business with profit motive. These policies have put reverse impact on business regulation of
this hotel at an optimised context or time. Chances are high, because of increasing inflation rates.
Social: Changes in social factors have put impact on demand & supply of this hotel
products or services. In this, willingness and also availability of an individual to work is used to
be taken care. Role of the social empowerment is necessary to led development of process for
functioning of this hotel at a productive context. Because of people thinking on the social
awareness has major impact of operation of the Royal Lanchester hotel.
Technological: In hospitality sector, where technology is required to beyond the standard
level, when it comes to hotel management or process. Many new hotels have started embedding
and increasing using of the defined technology. With help of this, Royal Lanchester London has

become successful to attract their customer at a larger point. This is important to increase future
business productivity for the Royal Lanchester London (Kandampully, 2015).
Environmental: Both environmental and weather changes has directly impact on
different hotel premises, out of which Royal Lanchester is a key structure. Issues such as severe
weather condition has such as increased monsoon, environmental down breaking has forced
Royal Lanchester London to increase taxation on other protective goods or services. Here,
strategic planning is necessary to overcome impacts of environmental crisis to build again at an
utilise point of time.
Legal: A legal environment is an essential for the growth of a hotel industry, in which
higher legal cases has been occurred. In response to this, various strict or necessary prohibition
has been put on the Royal Lanchester London. The impact has shown customer of this business
firm are started neglecting this firm to utilised their products or services at a longer period.
P7 Undertaking of the SWOT analysis and review on decision making process
SWOT analysis is required to know internal ability or capabilities of the hospitality firm
to operate in different atmosphere to fulfil customer satisfaction at the productive level. This tells
about internal and external capabilities of any business organisation to led an implementation
several relevant change or alteration. For Royal Lanchester, SWOT analysis will assist this hotel
industry to gather positive scope for development of strategic planning of this Royal Lanchester.
The SWOT analysis will be as under:
Strength Weaknesses
The major strength for the Royal Lanchester is
its location near to the natural or cultural
diversity along with natural beauty and glory.
Also, clear or productive response on demand-
supply gap has comes under their strengths.
Along with this, increase in market share is
positive about this Royal Lanchester London
(Law, 2015).
Competitive price offering by rivalries are one
major weakness for this leading hotel Dept. As
they still focusing on high cost to operate, but
chances are decreased after the entrances of
rivalries into the market share. Complicated
taxation structure is a diverse weakness of the
Royal Lanchester London.
Opportunities Threat

Royal Lanchester have a desired opportunity to
comes up with flexible taxation structure to
avoid customer cost and at same raises
business profitability for a longer time. Also, it
has major opportunity to build platform or
community to retain their customer at one time
Increasing level of rivalries will be major
threat for Royal Lanchester London to carry
out their business operation for a future period.
Also, increasing denomination of the cost
compounding will be big threats for Royal
Lanchester London.
After this SWOT analysis, this has been noticed that Royal Lanchester London have an
opportunity to build effective decision making by understanding internal or external level of the
capabilities to make right & corrective decision making in context of what strategic planning can
be taken to build productivity or profitability for a productive process or strategic planning to
bring operation utilised to increase profitability.
TASK 4
P8 Implication of the current and potential trends in the hospitality industry
In the hospitality industry various trends are running such as globalisation, safety and
security, diversity, technology etc., will be put major understanding and realises the level of
decision making that will be taken care after analysis of current or potential trends for the Royal
Lanchester London are as follows:
Technology: Technology is a driving force of change that presents opportunities for
greater efficiencies and integration for improved guest services. Technology has become a
tourism business activity in development of strategic resources and is considered as a tool to
increase competitiveness. Good use of information technology can make significant operational
improvements. While, in case of an effective decision making, this trend will assist hotel to make
relevant changes in that context.
Service: In current time, global competition & market consumption has been changed the
expansion of the service industry, in which quality plays an increasingly important role in an
attraction & retention of a service customers. Also, service quality and degree of satisfaction has
been derived from quality or quantity which has become necessary differentiating factors in
almost every hospitality environment (Liat, 2014).

Diversity: The hospitality industry is one of the most diverse out of industries in terms of
employee population and groups of guests along with renowned premium sector. Hospitality
industry such as Royal Lancaster present a unique opportunity to understand new cultural
experiences for both employees and the tourists.
CONCLUSION
From an above report, it is concluded that hospitality industry has been termed as most
premium or opportunities raising industry, in which people enrolment is high and also people are
like to invest their time to get productive response out of this industry. This has been concluded
that prominent is to do the factor analysis in hospitality industry to illustrates how this industry
can be grow and also what steps or factors can be taken into existence to make effective for this
industry to develop suitability or continuity of the business operation at a greater or productive
side. Lastly, this has been proved necessary to undertaken strategies to grow business suitability
for a longer period of time.

REFERENCES
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special focus on the hospitality industry. International Journal of Contemporary
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satisfaction, and loyalty: Evidence from the Malaysian hotel industry. Journal of
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Šerić, M., and et. al., 2014. How can integrated marketing communications and advanced
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hospitality industry. International Journal of Hospitality Management. 39. pp.144-156.
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Online
PEST Analysis. 2018. [Online] Available through.
<https://www.visual-paradigm.com/guide/strategic-analysis/what-is-pest-analysis>