Hospitality Industry: Scale, Scope, and Organizational Structure

This report provides a comprehensive analysis of the contemporary hospitality industry, examining its current scale, scope, and diversity within the UK context. It delves into the organizational structures of various hospitality businesses, including hotels and catering services, exploring the roles and responsibilities of different departments. The report assesses staffing requirements, qualifications, and the significance of professional bodies like the British Hospitality Association and the Institute of Hospitality. It covers the industry's contribution to the economy, ownership types, and the importance of adapting to market trends. The report also touches upon the role of organizations like Springboard UK in supporting the industry. The report is structured with an introduction, followed by sections on the industry's scale, organizational structure, and staffing. The report concludes with an overview of the key findings and insights into the future of the hospitality sector.

CONTEMPORARY ISSUES IN
HOSPITALITY INDUSTRY

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Current scale, scope and diversity of hospitality industry.....................................................1
1.2 Structure of different organizations of hospitality sector......................................................3
1.3 Role of hospitality concerned with professional bodies and organizations...........................5
TASK 2............................................................................................................................................6
2.1 Staffing requirement of different hospitality businesses.......................................................6
2.2 Roles, qualification and responsibilities requirement for hospitality staff............................7
TASK 3............................................................................................................................................7
COVERRED IN PPT...................................................................................................................7
TASK 4............................................................................................................................................7
COVERED IN PPT.....................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Today, Hospitality Sector has become one of the fastest growing sector in the world. It is
also known as the revenue generator for economies of different countries. Hospitality industry is
a broader term that mainly emphasize on providing memorable experience to vast number of
customers (Amin, 2015). It encompasses gamut of other small sector like restaurant, pubs and
hotels, tourism industry, etc. The main purpose of this report is to analyse the diversity, scope
and current scale of hospitality sector. Along with this, it also discuss organizational structure of
different hospitality organizations, assessing staffing requirements, evaluate legislative,
managerial and operational issues. Potential trends and development in hospitality sector were
also assessed along with its justification.
TASK 1
1.1 Current scale, scope and diversity of hospitality industry
The Hospitality is one of the leading and fastest growing industry in the world. In total,
there are just 46,000 guest houses and hotel in United Kingdom. In-fact the hotel sector is
significantly contributes towards country's economy and GDP with an annual turnover of around
£40billion. According to British Hospitality Association, “the entire industry composed of
127,000 properties and provide employment opportunities to workforce of 1.6 million people on
daily basis. The industry is very large and diversified. It is the 3rd largest sector that provides job
opportunities to ample number of people.
Talking about is its scope, which is also very big signifies that there are several other
commercial sector like hotels, motels, fast food outlet, restaurants etc. Along with this, it also
covers other sectors like halls of residence, educational institution, prisons, old age home etc.
Every year millions of tourists visit UK and avail ample services of hospitality industry. For
example: One can find many big hotels in London that accommodate large number of visitors
every night. However in order to manage these large proportion of guests in a systematic
manner, huge workforce is required. This represents that sector is creating millions of jobs which
one or the other hand portrays its contribution towards country's growth and development
(Yahya and Kassim, 2013).
.
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The industry is heterogeneous because of ownership, innovation, level of service, grading
system, leisure facilities, future trends etc. Services given by hotel vary from one another. For
example: Services offered by a 5 star hotel is far better when compared to services given 2 or 3
rated hotel. Today, hotel industry not only provide accommodation and food services but also
offer other distinct facilities like swimming pool, internet, laundry, salons, meeting room, car-
parking, night clubs etc. The ownership and classification of hotel grading are two important
aspects that diversified entire hotel industry (Bharwani and Jauhari, 2013). Different types of
management style and ownership includes partnership, sole owner, private and public limited
firms etc. According to the level of services given by hotels to vast number of tourists; rating
with star is done ranges between 1-5.
Hospitality sector is the one which comprises various sectors as given below in the following
points:
 Hospitality services
 Nigh club, bars and pubs
 Self-catering
 Gambling
 Visitor attractions
 Holiday and theme parks
 Hostels
 Membership clubs
 Contract catering
 Tourist services
 Events
 Travel service
Type of ownership in hospitality sector:
 Partnership: In this type of ownership two or more than two parties work together for
trade their services and to generate more number of profits. Each partner in this remain
responsible to contribute their skills, resources and money. This is mainly follow by
travel companies.
 Leasing: This is another most popular type of ownership, in which leasing firm remain
the owner of property but possession is transform to lessee and he remain responsible to
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get all benefits and risk related with ownership of assets. This kind of structure is mainly
adopt by hotels.
 Franchising: Under this owner of the product or service give licensed to the franchisee
and give permission to do business under his brand name and also offer training so
franchisee can meet up all the quality measures. This is utilise by McDonald’s.
1.2 Structure of different organizations of hospitality sector
Organizational structure defines the relationship between different departments and
people of a company. Structure of every organization varies from one another. For example:
Some enterprises are having tall structure while some have flat structure. In hospitality sector,
tall structure is primarily found in large organizations like hotels which is made up of different
staff levels starting from manager-to workers whereas businesses with flat structure do not have
any level of staff. For instance: In a flat structure, owner of restaurant can act as manager and
chef as well. Moreover, the company is classified into 2 distinct parts one is front of the house
and other back of the house. Front of the house covers department likes accommodation, food
and beverage, banqueting and conference etc. On the contrary, back of the house departments
covers food preparation areas, finance and also the area which is not in customer's limelight.
In accommodation sector one can find different sort of structure as well as ownership.
Mostly franchised and the sole ownership are most common other types of ownership. Sole
ownership implies opening hotel by oneself without taking any monetary or financial help from
others instead of taking loans from bank. The main advantage of this is owner is having
exclusive rights of all profits & losses generated by firm in respective year.
The hotel can be franchised or a chain hotel which means it's a part of already established
and well-famed hotel. In order to take franchise such hotels, one need to pay royalty fee to
franchisor in order to run or operate business successfully (CG Davidson, 2015). Structure of
hotel also varies from one another. For example: Structure of 5-Star Hotel is tall i.e. each
department is having distinct person who manages or oversees functions of that particular
department.
Five star hotels- They give lavish services to their gusts in terms of accommodation,,
restaurants, dinning etc. They price maximum amount of fund for giving service. It is important
to alter plan of action as per the market trends. Respective hotels have different outlets in various
parts of organisation. In such business, there is correct hierarchy which assist to perform
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operations and activities of business in proper manner. There is accurate communication within
an enterprise. They work and perform as link between different managers of division head and
therefore they can do business operations and functions appropriately.
Illustration 1: Structure of Hotel
(Source: Organization Structure, 2017)
Catering services- There is highly need of serving food products in parties. Hotel give
this services to the clients in an effective manner. There is necessity of making as well as
offering eatables at few events, functions and many other so these services are included in
hospitality sector.
Theme Parks- It is a park which covers resorts, water parks and so on. As per this, their
is highly needs of cleanliness, bookings, hygienic factor, customer's safety, purification of water
and many other that has to be followed by administrator of Theme park.
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1.3 Role of hospitality concerned with professional bodies and organizations
British Hospital Association: BHA is considered to be one of the leading hospitality
related organization as well as professional bodies. The future of tourism and hospitality sector
gets structured by BHA as it plays important role in catalysing financial growth, global
competitiveness, economic growth etc. Presently, BHA constitute of around 40,000 clubs,
restaurant, food services, attraction, service organization or apartments for leisure activities
(McPhail and Barry 2011). It laid stress on five key aspects which are discussed below: Economy: BHA promotes an environment that chiefly emphasize on global competition
and attaining proper growth in this competitive world. Employment: It also focuses on providing ample job opportunities to less skilled and
educated candidate. In simple words, it provides a platform to an individual where he/she
gets a chance to grow and develop both personally and professionally. Intelligent Regulation: Policies were formulated by BHS in context of reducing tax rate
and costly regulation that lasts an adverse impact on hotel industry Health: BHA aims to shape the hotel industry in such a manner that leads to enhance
healthiness of entire sector and also promote safety as well (Gin Choi and et. al., 2015). Sustainability: Another crucial area which BHA is require to address in a proper and
effective manner deals with meeting diverse needs and requirement of target audience.
Sustainability of any firm depend upon how effectively the sector is fulfilling the needs
of target customer.
Institute of Hospitality: It is was established in the year 1938 with an objective to
provide right training at right time to individuals which help in their growth and development
both personally and professionally. Its main roles includes: Membership: Various membership programs were offered by the institute that eventually
benefits people in developing their skill and knowledge in hospitality sector. Qualification and Accreditation: This provide several number of vocational programs
that gives manager a platform to improve their skills, knowledge and competency. Professional Association Network: It is also the member of PARN which makes entire
sector liable to deliver high quality services so as to earn high satisfaction level of
customers.
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Springboard UK: This professional body provide support or assistance to people who are
young, unemployed and less advantageous people to begin a career in hospitality industry. This
is regarded to be a crucial opportunity as unemployment rate of young individuals is almost 3
times the national average (Kwon and Kim, 2013). Basically the role of this body is to promote
hospitality sector as best and most suitable place to work. Another aspects that Springboard
needs to take into account is to work for addressing needs related with corporate social
responsibility and human resource of business & for raising fund for ding charity work.
TASK 2
2.1 Staffing requirement of different hospitality businesses
Success and growth of any company mainly rely upon how effectively human resource
contributes towards achieving organizational objectives. Thus, it is important to recruit and select
right candidate for the company who works incredibly hard towards accomplishing pre-defined
goals and objectives within its specified time frame. Recruitment of staff varies from industry to
industry. Depending upon the structure and size of an organization, HR management employs
required workers. Is the structure of enterprise is large, that means it require large number of
personnel to perform its business activities and operation. Similarly on the other hand any small
scale or medium scale industry must require competitively small proportion of employees as
compared to large one. For example: In hotel industry, requirement of staff can be determined
through the grade of hotel. If a hotel grades between 4-5 stars then eventually number of staff
members requirement is also large as they are provide more number of services to customers in
comparison with other hotels (Hertog, Gallouj and Segers, 2011). In order to perform these extra
services in a proper manner, workers play key role. In fact, such type of hotel recruit staff
members in bulk in order to get its customer delighted in an effective manner. Here the most
challenging part is, with more staff hotels need to render better training to them in regards with
fast services, communication etc.
On the other hand if any hotel grades between 2-3 star, it does not require much workers
as compared to large ones. The main reason for not employing large number of worker is it only
hires skilled and multi-talented candidates who perform business activities in an effective and
efficient manner. Here the advantage is, work is divided among staff member on the basis of
their competent and kill. That is one another reason for not recruiting large number of staff
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member is its revenue. As it is a small hotel, there are many department in which a staff member
is performing dual role. For example: There are some small hotels where manager is playing the
role of chef so as to save money and use it further to satisfy client's needs and desire. By hiring
extra number of employees, unnecessarily pressure is going to be put on them.
2.2 Roles, qualification and responsibilities requirement for hospitality staff
The key role and responsibilities of each staff member different from one another depending
upon the criteria of hotel for selecting employees. Some hotel hire candidate on the basis of
knowledge they possess whereas some recruit on the basis of their competencies and skills. For
example: In Garden View, general manager is the head of hotel who with the help of other
assistant manager divides the given task among staff member of each department. Here the role
of supervisor is to keep an eye on the work performed by staff member and provide required
guidance and direction to them. In short, they train employees so as to make them perfect in their
respective area. Along with this, Hotels are require to give appropriate training and development
program to its workforce so they knows what work they need to perform without making any
mistake (Leung and Law, 2011). It ought to be great the representative to know to whom he
needs to report so that in the event that he faces any trouble, he can straightforwardly ask their
predominant. The principle part is to fulfil their buyer by giving them enchanted administrations
as far as night club, Jacuzzi, spa, and so on. Additionally the specialists are require to see like
& aversions of the customer taste so they can fulfil them in a better manner by giving them
a sustenance of their decision.
TASK 3
COVERRED IN PPT
TASK 4
COVERED IN PPT
CONCLUSION
According to above mentioned about it can be concluded, hospitality sector is growing
rapidly in context of providing quality services to its guest and satisfying their needs.
Professional bodies like BHA, institute for hospitality act also contributing significantly towards
the growth and development of hotel industry. With high end technology, industry is gaining
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high competitive advantage in market over other competitors. The current time portrays an
outstanding prospect in context of successful commitment by government towards improving the
facilities served by entire hospitality industry.
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REFERENCES
Books and Journals
Amin, M., Yahya, Z., and Kassim, E., 2013. Service quality dimension and customer
satisfaction: An empirical study in the Malaysian hotel industry. Services Marketing
Quarterly. 34(2). pp.115-125.
Bharwani, S. and Jauhari, V., 2013. An exploratory study of competencies required to co-create
memorable customer experiences in the hospitality industry. International Journal of
Contemporary Hospitality Management. 25(6). pp.823-843.
CG Davidson, M., McPhail, R. and Barry, S., 2011. Hospitality HRM: past, present and the
future. International Journal of Contemporary Hospitality Management. 23(4). pp.498-
516.
Gin Choi, Y., Kwon, J. and Kim, W., 2013. Effects of attitudes vs experience of workplace fun
on employee behaviors: Focused on Generation Y in the hospitality industry.
International Journal of Contemporary Hospitality Management. 25(3). pp.410-427.
Hertog, P.D., Gallouj, F. and Segers, J., 2011. Measuring innovation in a ‘low-tech’service
industry: the case of the Dutch hospitality industry. The Service Industries Journal.
31(9). pp.1429-1449.
Ip, C., Leung, R. and Law, R., 2011. Progress and development of information and
communication technologies in hospitality. International Journal of Contemporary
Hospitality Management. 23(4). pp.533-551.
Janta, H., 2011. Polish migrant workers in the UK hospitality industry: Profiles, work experience
and methods for accessing employment. International Journal of Contemporary
Hospitality Management. 23(6). pp.803-819.
Jeou-Shyan, H., Hsuan, H., and Chang-Yen, T., 2011. Competency analysis of top managers in
the Taiwanese hotel industry. International Journal of Hospitality Management. 30(4).
pp.1044-1054.
Jones, P., and et. al., 2016. Sustainability in the hospitality industry: some personal reflections on
corporate challenges and research agendas. International Journal of Contemporary
Hospitality Management. 28(1). pp.36-67.
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Kandampully, J., Zhang, T. and Bilgihan, A., 2015. Customer loyalty: a review and future
directions with a special focus on the hospitality industry. International Journal of
Contemporary Hospitality Management. 27(3). pp.379-414.
Lub, X., and et.al., 2012. Different or alike? Exploring the psychological contract and
commitment of different generations of hospitality workers. International Journal of
Contemporary Hospitality Management. 24(4). pp.553-573.
N. Torres, E. and Kline, S., 2013. From customer satisfaction to customer delight: Creating a
new standard of service for the hotel industry. International Journal of Contemporary
Hospitality Management. 25(5). pp.642-659.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management. 51. pp.13-21.
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