Hospitality Industry: Business Types, Economic Impacts and Roles

This report provides a detailed analysis of the hospitality industry, focusing on various business types such as travel and tourism, food and beverages, entertainment, recreation, and lodging. It examines the organizational structure of companies like Marriott, highlighting the interrelationships between departments like marketing, front office, back-end office, and operations. The report discusses the direct and indirect impacts of the hospitality industry on local and global economies, including employment generation, local retail growth, GDP improvement, and promotion of local products. It also analyzes how franchising and licensing contribute to the global growth of hospitality enterprises by providing access to new markets, increasing brand value, and maximizing profits. Furthermore, the report identifies different operational roles within the industry, such as front desk services, housekeeping, maintenance, and management, and analyzes the skills required for these roles, including communication, time management, and teamwork. Finally, it addresses the factors driving skills shortages, such as low wages, technology, political crises, and structural changes, and analyzes the impact of the skills gap on hospitality businesses, including labor shortages and negative work culture.

Hospitality industry.

Table of Contents
INTRODUCTION...........................................................................................................................3
Defining various types of businesses in hospitality industry.......................................................3
Examining how organization structured and reviewing interrelationships of departments.........4
Discussing direct and indirect impacts of hospitality industry on local and global economy.....4
Analysing how franchising and licensing contributes in global growth of hospitality industries
......................................................................................................................................................5
Identifying the range of different operational roles:....................................................................5
Analysing the skills' requirement for the specified roles.............................................................6
Identifying the factors driving skills' shortage:............................................................................7
Analysis the impact of skill gap in hospitality business..............................................................7
REFERENCES................................................................................................................................9

PROJECT 1
INTRODUCTION
Hospitality industry also known as service industry which aims to work at providing
customers with various types of services including tours and travels, foods and beverages, events
and many more. Industry plays a vital role in providing people with various types of experiences
and services. The report discuss about 'Marriott' which falls under the category of top leading
hotel based in U.K. Analysis also focus on different types of business in hospitality industry and
the services offered by them, range of operational and functional departments and contribution of
industry to local and global economy. Lastly, report also discuss various operational roles of
industry with major skills required by organization.
Defining various types of businesses in hospitality industry
Hospitality industry simply aims at providing customers with various services for their
satisfaction (García-Cabrera and et.al., 2018). Under this various types includes
Travels and Tourism: Businesses major focus on providing customer in regard to
moving people from one place to another. Their main function is to encouraging people to travel
and providing them with services. With the high number of people travelling results in higher
monetary benefits for companies.
Food and Beverages: The largest sector or type of hospitality industry aims to providing
customers with satisfactory services with cafes, bars, restaurants and other catering services. As
being the largest sector contributes more and requires the highest values offered by them.
Services under this works from preparing foods to delivering to customers.
Entertainment Sector: Another type which focuses on providing satisfaction to
customers with some sort of entertainment (Borovikov and Smolyakov, 2019). This includes live
concerts, performances by various well-known people, theatrical performances and many more.
Apart from this also aids in uplifting customer's moods and morale.
Recreation: Under this type activity provided for relaxation and enjoyment of people.
The goal is refreshing consumer's mind and body. Includes various spas, sauna baths, etc.
Lodging: Also known as accommodation and as the name suggest aids in providing
customers by providing them place to live or sleep for some period of time such as hotels,
motels, camp-grounds etc. Lodging markets to other segments like business or leisure travellers,
long period staying people and many more.

Examining how organization structured and reviewing interrelationships of departments
Organizational structure is defined as the strategy used by various companies that
showcase about the work in an enterprise were directed in certain ways for goal achievement
(Ključnikov, Krajčík and Vincúrová, 2018). As it aims in providing guidelines for employees to
follow so the information flows within range of firm. 'Marriott' uses hierarchical structure with
pre determined roles and activities to all departments. Under this structure manager may at top
with powers for assigning duties to sub-ordinates. Apart from this strategy also provides
specialization in work, clear delegation of authority and effective functioning of firms.
Interrelation of departments in organization
Marketing and Front office department: One of the main inter connected departments
focus on attracting more customers to company. With front office department providing
information to marketing team about consumer's availability and their preferences for increasing
more people for company to attract. After the information marketing team takes action in
accordance and uses various techniques for grabbing more consumer base.
Back-end office and Operations: This inter-relation occurs in response to internal
workings in 'Marriott' as both departments may tend to maintain an effective working between
them (Breda, Panyik and Costa, 2020). Whenever there is an issue in operations back end
department aids in resolving that problem for an effective and efficient workings. As well as
increasing customer satisfaction resulting in profit earning for brand.
Discussing direct and indirect impacts of hospitality industry on local and global economy
The industry does put an impact on both local and global economies. As Marriott
provides local economy with various functions such as
Increasing Employment: One of the positive impact 'Marriott' puts on local economy
with generating employment as big brands hotel requires huge staff for their working which aims
at recruiting new employees and increasing employment generation in economy. Also aids in
increasing customer satisfaction.
Local retail growth: Another impact Marriott puts by increasing sales of local retailers
aids in growth. With purchasing various items from local retail stores aids them in earning more
sales and profit accumulation. Apart from this also aids in and promoting local or domestic
products.

Increased standard of living: With recruiting and increasing employment also helps
economy in increasing standard of living for people (Li, and Singal, 2019). As well as high
remuneration of employees results in grater lifestyle.
Impact in International market includes
Improved GDP growth: With people choosing 'Marriott' results in more international
customer attraction which helps in more tourism of people resulting in higher GDP for the
nation.
Promoting local products: Another impact by industry as when foreign customers stay
at 'Marriott' tends to get products from that country hence results in promoting local products. As
well as also aids in increasing the sales revenue for both firms and local retailers.
Analysing how franchising and licensing contributes in global growth of hospitality industries
Franchising refers to as the agreement where franchisor gives its licence or authority to
franchisee for using brands value, name and royal for expanding and doing business in
international markets (Ouyang, Wei and Chi, 2019). Whereas licensing is defined as when one
company authorizes second company with issuing licence for getting access of all rights,
trademark, patents and many more. Both plays a vital role in growth of hospitality enterprises by
Provides access to new markets: With the help of franchising and licencing hospitality
industries tends to get access into new and more markets for increasing their customer base.
Apart from this also aids in increasing profits for firms by providing them customers from
various regions around the world.
Increases Brand value: Another impact provides by global growth is creating and
increasing brand name and value (Paulauskaite and et.al., 2017). As various firms think or
expand into new markets gains new customers which basically results in uplifting brand's name
and reputation along with market grabbing.
Profit maximisation: The major feature being provided is increasing the profits and
sales revenue for firm. With expanding into international business provides companies with
gaining more customers and as a results profit accumulation and increment.
Identifying the range of different operational roles:
There are different types of roles that are practice in the Marriott hotel. Some of them are
briefly described as below:

Front desk services: These are the roles that is responsible for handling all the guests
that are visiting the hotel. Also, these individuals are continuously involved in contacting all the
guests so that there needs could be fulfilled on timely manner.
Housekeeping: It is very important role in the hospitality industry that ensures that all
details of the room are taken care of (Canhoto and Wei , 2021). Further, this is very crucial as it
helps in maintaining the cleanliness and ensures that all the requirements and amenities within
the room are met accordingly.
Maintenance: It is seen that even the best quality of products and utilities could also
break at some point of time. Also, this role of the person will help in repairing and fixing all the
computer, TV screens, DVD players and so on so that best of the customer experience could be
given to all its guests.
Management: This role of in the hospitality sector ensures that all the things are timely
and properly managed so that necessary adjustments if any could be made easily. Further,
management could be in form of accounting, marketing or human resource functions. In
accounting all the revenues and expenses are recorded, in marketing methods of increasing the
sales are developed and human resource staffing and hiring of workers and much more are done.
Analysing the skills' requirement for the specified roles.
There are certain specified skills that need to be present in individuals to work in
effective manner in the Marriott hotel that is the most popular luxurious hotel. Some of them are
briefly described as below:
Communication skills: It is very important skill to welcome large number of diverse
guests in the hotel. Thus, employees need to have efficient speaking skills so that all the queries
could be handled in the best manner. Further, this requires that proper training is been provided
to all the workers so that better understanding could be developed (Aluculesei and Bulin , 2017)
Time management : It is crucial that individual is multitasker and is able to handle
different tasks at the same time. Also, according to this ability the employee would be able to
divide the working hours in the best manner. Thus, time management also reduces stress level
and create the best working environment.
Teamwork skills: Furthermore, it is seen that to work in the hospitality sector it is
required that strong team relations are build up so that work can be carried in smooth and

coordinated manner. Also, it helps in facing all challenges and reduces the chances of conflicts
within the hotel.
Moreover, it is seen that the current skills' shortage in this industry are technical skills
that is required to carry out various tasks in unique manner. In the current time of pandemic most
people were unable to complete tasks due to lack of proper n knowledge in the specified field
(Kenyon, Robinson and Musgrave, 2020). Further, there is lack of flexibility and thus people are
not able to work for longer hours in the time when the workload is very high or there is busy
period in any year.
Identifying the factors driving skills' shortage:
There are various factors that are responsible for the shortage of skills on the hospitality
industry. Some of them are as follows:
Low wages: This is major factor due to which employee turnover is higher in the UK
hospitality sector. Moreover, it is seen that because of very low wages all the worker are
switching to other job options that available in the market as they feel that they are not being
valued (Jones , Hillier, and Comfort , 2017).
Technology: It is seen that older workers that are working in the hotel industry have less
knowledge using various gadgets as well as digital technologies and result of which there is high
turnover in the industry. Moreover, such skills require proper training that might not be possible
for some firms due to shortage of time (Fouad , 2019).
Political crisis: Factors such as political unrest in the country where job security is not
ensured to many of the workers than due to fear of which most people are not able to work in
happy environment. Furthermore, it is seen that due to new Brexit reforms most of the workers
are finding uncertainties in the future operations and thus are leaving the jobs.
Structural change: It is seen that rapid changes in the structures of business also create
problems in the overall working of hotel industry. Sometimes, such structure are of complex
nature that could not be easily adopted by all the individuals and hence it is major reason for the
high employee turnover in the UK market (Thirumaran , Klimkeit and Tang , 2021)
Analysis the impact of skill gap in hospitality business.
The major impact of such skills' gap is that there is high level of shortage of labour in the
industry and thus retaining the older workers is the big tasks for almost all industry. Moreover,
there is development of negative work culture where employees resist in taking certain

responsibilities that are assigned to them in routine works (Pappas, 2019). Also, limited
innovation and changes are seen in the industry due to which the best expansion solutions are not
available to various companies in hospitality sector.
Recommendations:
 More of training and development activities need to be organized and conducted by the
firm so that skills could be enhanced.
 Offering more flexible work job opportunities so that best of the talent could be retained
within the firm.
 Develop certain performance indicators so that the performance could be measured on
regular basis and corrective actions could be taken on time.
CONCLUSION
From the above report it can be concluded that hospitality industry have been expanded
to the large level and has created the lot of employment opportunities for various individuals.
Also, the report had analysed different types of business that exist within the hospitality sector.
Further, the bests way to structure the Marriott hotel along with review of various
interrelationships within the department had also been analysed in detail. Also, direct and
indirect impacts on hospitality industry on UK economy had been analysed. Furthermore,
different operational role such as management, front desk, marketing etc. related to the Marriott
had also analysed. Also, the required skills to carry out such roles had also been discussed under
this study along with current shortages that the industry is facing. Furthermore, impact of such
skills on the current operations of the hotel along with certain recommendations had also been
discussed .

REFERENCES
Books and Journals
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management system of a holding type company. Upravlenie. 7(3). pp.54-62.
Breda, Z., Panyik, E. and Costa, C., 2020. Internationalization of the hotel industry: evidence
from Portugal. Public Policy. 5(2). pp.81-96.
Canhoto, A. I. and Wei, L., 2021. Stakeholders of the world, unite!: Hospitality in the time of
COVID-19. International Journal of Hospitality Management. 95. p.102922.
Fouad, M., 2019. Impact of Leadership Style on Employee Job Satisfaction in the Hospitality
Industry. International Journal of Heritage, Tourism and Hospitality. 13(1). pp.1-12.
García-Cabrera, A.M. and et.al., 2018. Negative work-family/family-work spillover and well-
being across Europe in the hospitality industry: The role of perceived supervisor
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Jones, P., Hillier, D. and Comfort, D., 2017. The sustainable development goals and the tourism
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CABI.
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light and fee-oriented strategy. Tourism Management. 70. pp.124-133.
Ouyang, Z., Wei, W. and Chi, C. G., 2019. Environment management in the hotel industry: does
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pp.353-364.
Pappas, N., 2019. UK outbound travel and Brexit complexity. Tourism Management. 72. pp.12-
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sharing economy. International Journal of Tourism Research. 19(6) pp.619-628.
Thirumaran, K., Klimkeit, D. and Tang, C. M. eds., 2021. Service Excellence in Tourism and
Hospitality: Insights from Asia. Springer Nature.