Hospitality Management: Theories in Practice Executive Summary Report

This report provides an executive summary and in-depth analysis of the hospitality sector, focusing on accommodation. It begins with a brief history of the industry and identifies key sectors, including lodging, travel, and tourism. The report explores accommodation classification, organizational structures, and departmental functions, with a specific focus on hotel operations. It also examines marketing strategies, environmental impacts, and current trends, such as online bookings and wellness facilities. Financial statements and the broad impact of the accommodation sector are also discussed. The report concludes with recommendations for improvement and growth, offering a comprehensive overview of the hospitality industry's dynamics and challenges. It highlights the importance of adapting to trends and customer needs for sustained success.

HOSPITALITY
MANAGEMENT:
THEORIES IN PRACTICE

EXECUTIVE SUMMARY
The below report is focused on hospitality sector. As per the findings of the
report, it can be said that the return of the organisations in hospitality sector is
better and it is allowing the company to grow and develop better growth and
competitive advantage. The goals of all the hospitality organisations across the
world is to reach better customers and to make desired profits as well. Thus, it can
be said that the hospitality sector is a growing sector due to dynamics of trends.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
RESULTS/FINDINGS....................................................................................................................1
Brief history of hospitality..........................................................................................................1
Sectors in hospitality industry.....................................................................................................1
Hospitality link with travel and tourism.....................................................................................2
Accommodation classification and types....................................................................................2
Organisational structure of accommodation sector.....................................................................2
Department of accommodation sector........................................................................................3
Managerial process......................................................................................................................3
The process of recruiting and Staffing........................................................................................4
DISCUSSION..................................................................................................................................4
Functions of each department of accommodation sector............................................................4
Hospitality marketing..................................................................................................................4
Environmental impact in hospitality management......................................................................5
Current trends..............................................................................................................................6
Financial statements....................................................................................................................6
Broad impact of accommodation sector......................................................................................7
RECOMMENDATION......................................................................................................................7
CONCLUSION..................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Hospitality refers to the generous and friendly entertainment and reception of the visitors,
strangers and guests. The hospitality industry includes a broad category of fields within the
service industry. This includes food, drink, lodging, theme parks, event planning, transportation,
travelling, cruise line etc. The concept of hospitality industry to provide services such as
accommodation, food and beverage and leisure facilities to its guests. The core and major aspect
under which the business of hospitality runs around is Accommodation. Accommodation is the
main reason behind why there is a growing demand of hospitality business across the world.
Also, these are the main areas from which it earns its profits (Bretherton, 2017). The below
report is going to identify the in-depth understanding of a hospitality sector. The chosen
accommodation sector is a hotel (Oskam and Boswijk, 2016). The report will explain the
organisational structure of a hotel, the departments in the accommodation sector, the functioning
of each and every department and the marketing taking place within the hospitality. The report
will also highlight the environmental impact in the management of hospitality.
RESULTS/FINDINGS
Brief history of hospitality
The hospitality industry dates back to the ancient Greek times. Around 40 BC as per the
experts the services of hospitality industry were only used for social and religious gatherings. In
late 18th and early 19th century people started travelling more and more (Ikkala and Lampinen,
2015). It gave rise to hospitality sector. New entrepreneurs started investing in places such as
hotels, resorts, restaurants etc. These demands of hospitality services and accommodation places
started picking up. It gave rise in hotels, resorts, and other leisure facilities. People started
making use of them more and exploring new options. The arrival of technology is another major
change which the industry saw recently. It allowed people to explore new things and book
services easily. This added up to the growth in hospitality and allowed the organisations to grow.
Sectors in hospitality industry
There are four different sectors in hospitality industry. These sectors include lodging and
accommodation, travel and tourism, recreation and food and beverage. The accommodation
sector provides the facilities of accommodation to the guests (Bretherton, 2017). It includes
hotels, resorts, etc. The travel and tourism sector provide facilities such as airlines, cruises, etc.
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Hospitality link with travel and tourism
The link of the hospitality industry with travel and tourism is huge in every aspect. It is
not possible for hospitality industry to operate successfully without the help of travel and
tourism. The activities of travel and tourism are associated with sending a person or a group of
persons from one place to another. When people travel from one place to another, they tend to
look for facilities where they can stay and make use of necessary wants and needs.
Accommodation classification and types
There are different types of accommodation in hotel sector such as hotels, bed and
breakfast, resorts, hostels, serviced flat and so on. As per size, there are number of rooms like
under 200 rooms, 200 to 399 rooms, 400 to 700 rooms and more than 700 rooms of hotels. As
per the standard, there are different types of accommodation in hotels sector such as world class,
mid-range and budget or limited standard Ahmad, & Saber (2015). Hotels are rating from 1 to 5
star according to the quality and standards. 1-star hotels are established at the bottom of hotel
industry pyramid. Hotels are operated by proprietors which called as 2-star hotels. Large rooms
and highly decorated lobbies that are known as 3-star hotels. High level of service and
accommodation that are rating the 5-star hotel.
Organisational structure of accommodation sector
Hotel must have organizational structure for carrying out their day to day operations. It is
utilised to aid divide activities, specify the job for each division and delegate authority within
and between departments. Effective job specifications will raise work productivity and
efficiency. Each and every hotel organizes workforce in different manners. It was basically
segmented into different departments like finance, sales, logistics, human resource, front office
and food & beverage.
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Department of accommodation sector
Hotel sector is selected accommodation sector which involves different divisions such as:
Finance Department, Food and Beverages Department, Human Resource Department, Sales
Department, Logistics Department and Front Office Department. All the departments contributed
for running all the daily operations of hotels sector.
Managerial process
The managerial process refers to the management staff of hospitality industry. Below
mentioned are the main role of management within the hotel. Planning: The management of the organisation involves better planning of the activities
and the process. Good planning ensures that all the functions are running smooth and
efficient.
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Illustration 1: HOTEL ORGANIZATIONAL CHART
Source: (HOTEL ORGANIZATIONAL CHART, 2016)

 Organizing: One another aspect of management is organizing the activities happening
within the department. Staffing: Better staffing allows the organisation to reach new level of growth and ensure
that required goals are being achieved successfully (Ikkala and Lampinen, 2015). In
staffing the management of the organisation tends to staff its chosen members as per their
own potential and required capability. Leading: Better leading allows the management to ensure that all the actions are being
chosen and followed by the organisations higher authority.
 Directing: The management of the organisation tends to direct the organisation and its
departments as per the needs and requirements and set standards in order to achieve
required goals and objectives.
The process of recruiting and Staffing
Recruiting and staffing is one of the core aspects of the organisation to hire skilled staff
in order to achieve set growth and development.
In hospitality the recruitment process revolves around basic steps such as planning of
recruitment, strategy development, searching, screening, evaluation and control etc. It allows the
organisation to hire the skilled and required employees.
DISCUSSION
Functions of each department of accommodation sector
Front office Department: It is also called as room management which help to handle
consumer services involving the front desk service, reservation, laundry and housekeeping
services.
Human Resource Department: This division gives accountability to manage employee recruitment
and check attendance Birinci, Berezina & Cobanoglu, (2018).
Finance Department: The role of finance division is to record financial statements and deal with the cost
accounting and cost control.
Food and Beverage: The responsibility of this department for all dining room, bars and restaurants in the
hotels'.
Hospitality marketing
As per the marketing mix of hospitality, utilizing the marketing mix which covers 7 P's such as:
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Product: Hotel industry offers range of products such as guest room, conference, food and beverage and
banqueting facilities so on.
Pricing: Pricing is computed with different pricing methods like, cost-plus which based on value or
combative. Therefore, hotel owner offers the services at low prices.
Place: It means geographical location of the particular firm or business. It is analysis of geographical field
where purchasers look for the goods and services.
Promotion: It focuses on advertising and events to help the certain services and products. Hotels utilised
the different strategies for promoting the products in the market Radwan, (2016).
Process: It is the way of serving business products and services to buyers. It is normally network or
website for distribution of good and services.
People: The employee and consumers are involved the people mix within the hotel sector. Both are more
essential for company.
Physical Evidence: It can be done by keeping facilities clean and well decorated and tidy. It is the
essential for confirm assertions of the customers.
Environmental impact in hospitality management
Political: Hotel or travel and tourism industry are the backbone of the government which getting several
benefits or support by the government (Kara, 2018). Therefore, due to political instability in the country has
creates challenges and issues for the employees. Government decision or policies affect directly to the hospitality
sector.
Economical: Economic factors affect hospitality sector due to changes in taxation changes, inflation,
economic growth, interest rates and exchange rates. Economic changes have been given significant impact on the
hospitality firms.
Social: Social environment factor impact the demand of services or products. By contributing in
consumer welfare and society development would have been given positive impact on the social factors. Through
hospitality sector gain profit and brand image.
Technological: This factor is having to get advantage of technology developments. Technological
factors provide several opportunities to the hotels to use software to gathered customer details, promote services
and manage staff details.
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Legal: Legal requirements are essential for the hospitality sector to redefined the business image in the
market by following the ethical path (Domingues and Nunes, 2018). Otherwise, government take strict action
against the fraud businesses. Legal implications create challenges for the firms who deal in the hospitality sector.
Environmental: Environmental and weather changes have a direct impact on the hospitality sector.
Such incidents affect the services of hotels by decreasing the prices due to flood, storm and heavy rains.
Current trends
Online search and bookings: This are the most demanding services by clients to book services through
online or company websites. It more convenient for the buyers or flexible by different online payment modes.
Ecology: Modern consumers are demanding or more focused on socially and environmentally
conscious. So, they more prefer to visit those hotels who are environment friendly (Kim, Lee and Fairhurst,
2017).
Wellness & Spa: Release from the stress and desire to improve the quality of life has led to the
emergence of wellness and spa hotels. Hotel must have these facilities to gain customer attraction.
Financial statements
Cash Flow
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Balance Sheet
All the given statements of the company will help to analyse the actual financial position of the hotel in
order to identify the further action plan and growth for the more development growth. This would help to
determine the best and developing result planning for the future.
Broad impact of accommodation sector
Accommodation sector has been given high impact on the hospitality sector where customer get all kinds
of luxurious facilities. Accommodation is a very broad sector of the hospitality industry which ranging from bed &
Breakfast enterprise and hotels to other facilities that offer lodging services. Customer get efficiency, comfort,
world class services (Guttentag, 2015). When people travel they first looking for the accommodation then food
and then transportation. Furthermore, accommodation has been divided into three categories Lodging, Suites and
Resorts.
RECOMMENDATION
In order to improve its business, hotel need to develop itself in order to achieve profits and satisfy its
customers both. This will help the organisation in developing itself in order that it achieves set growth and
development. Also, a hotel can make use of better resources in order to achieve better growth and advantage. This
can allow the hotels business to grow and reach to the higher potential of profitability. This ensures a better reach
of product and services and allows the business to reach new level of growth and success.
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CONCLUSION
As per the above discussion and analysation, it has been concluded that hospitality environment is
friendlier with the visitors and guests. Hospitality service sector has been providing different range of services and
facilities to their clients. Present study presented the deep understanding about the hospitality and also explained
some other sectors involved in hospitality such as accommodation, resorts, travel and tourism. Study also
concluded about the different functions of each department of accommodation such as front office, HR, Finance
and Food and beverage etc. overall, it explained the services and the business environment of the hospitality
management through internal or external factors.
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REFERENCES
Books and Journals
Ahmad, S. Z., & Saber, H. (2015). Understanding marketing strategies with particular reference
to small-and medium-sized hotel businesses in the United Arab Emirates. Tourism and
Hospitality Research. 15(2). 115-129.
Birinci, H., Berezina, K., & Cobanoglu, C. (2018). Comparing customer perceptions of hotel and
peer-to-peer accommodation advantages and disadvantages. International Journal of
Contemporary Hospitality Management. 30(2). 1190-1210.
Bretherton, L., 2017. Hospitality as holiness: Christian witness amid moral diversity. Routledge.
Domingues, J. and Nunes, M. M. M., 2018. A first effort to understand the impact of Web
Summit in Lisbon 2016-2017 on the hospitality industry and Dand development of
startups(Doctoral dissertation).
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
Ikkala, T. and Lampinen, A., 2015, February. Monetizing network hospitality: Hospitality and
sociability in the context of Airbnb. In Proceedings of the 18th ACM conference on
computer supported cooperative work & social computing (pp. 1033-1044). ACM.
Jaykumar, P. 2019. HOSPITALITY MANAGEMENT INSTITUTES-THE SKILLS TRAINING
INDUSTRY PERSPECTIVE. Journal of Services Research, 18(2).
Kara, E., 2018. A Contemporary Approach For Strategic Management in Tourism Sector:
PESTEL Analysis on The City Muğla, Turkey. İşletme Araştırmaları Dergisi. 10(2).
pp.598-608.
Kim, S. H., Lee, K. and Fairhurst, A., 2017. The review of “green” research in hospitality, 2000-
2014: Current trends and future research directions. International Journal of Contemporary
Hospitality Management. 29(1). pp.226-247.
Oskam, J. and Boswijk, A., 2016. Airbnb: the future of networked hospitality
businesses. Journal of Tourism Futures. 2(1). pp.22-42.
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Radwan, H. R. I. (2016). Evaluating the effectiveness of social media as a marketing tool in the
hotel sector: A case study on four and five star hotels in Makkah, Saudi
Arabia. International Journal of Heritage, Tourism, and Hospitality. 8(1).
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