Contemporary Hospitality Industry: Trends and Impact Analysis

This report provides a detailed analysis of the contemporary hospitality industry. It begins with an introduction that highlights the industry's broad scope, extending beyond food and accommodation to encompass entertainment and customer experience. The report then analyzes the current scale, scope, and diversity of the industry, emphasizing its global growth and the factors that influence its expansion. It explores organizational structures, using functional and divisional structures as examples, and examines the roles of hospitality-related organizations and professional bodies like the British Hospitality Association. Furthermore, the report delves into operational, managerial, and legislative issues stemming from recent developments, such as labor shortages and employee turnover. It also discusses the industry's image, presents predictions for potential trends and developments, and concludes with an impact analysis, offering a comprehensive overview of the hospitality sector's current state and future prospects.

CONTEMPORARY HOSPITALITY
INDUSTRY

TABLE OF CONTENTS
Introduction..............................................................................................................................3
Analyse the current scale, scope and diversity of the hospitality industry...............................3
Discuss organisational structures giving as example 2 different types of hospitality
organisations.............................................................................................................................5
Give examples of hospitality related organisations and professional bodies and assess their
roles..........................................................................................................................................6
Analyse operational, managerial and legislative issues resulting from recent developments
affecting the hospitality industry..............................................................................................7
Discuss the current image of the hospitality industry..............................................................8
Present justified predictions for potential trends and developments in hospitality..............9
Produce an impact analysis for the predicted trends and developments..............................9
Conclusion..............................................................................................................................10
References..............................................................................................................................11
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INTRODUCTION
Generally when individuals talk about the hospitality industry and tourism sectors, often it
can be seen that the people think that this sector or the industry is all in relation to food and
accommodation services or it can be said that it more about on the basis of restaurants and
hotels, but actually the hospitality industry& range is much wider. Hospitality of customers
means not only serving foods or accommodation, but also means amusing of the clients and
providing them warm welcome and long term experience (Jeffries, 1985). In today’s world
tourism and hospitality sectors are growing rapidly due to the interest of the individual’s.
The travel and tourism industry has becoming the most dynamic and largest industries in
world’s business market. From the market survey, it can be observed that, travel and tourism
industry enhance the global GDP almost 10.3 percent in every year and due to the travel and
tourism industry it offers almost 234 million jobs all over the world.
Task 01
Analyse the current scale, scope and diversity of the hospitality
industry
To change on the cultural and environmental changes in the global scenario, hospitality and
tourism industry plays a significant role. The effective growth of the hospitality industry has
been grown in the Pacific, Europe and Asia and now the scope of developing hospitality
industry is continuously growing in Africa (Lingyun, 1991). According to the market
research, it can be observed that tourism and hospitality industry has most significant
phenomenon and it enhances almost 5% growth in every year. Apart from the growth of this
industry, some factors also pull back the industry for their effective growth in the
competitive market. To attract more customers in their business, the management and the
different organisation of these industries needs to develop their well maintained marketing
and promotional plans. The underneath factors can affect the future scale of this industry
and negatively affect their business.
 Economic Issues
 Political Issues
 Terror Attacks
 Demographical changes
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 Increasing Urbanization
British Hospitality Association is one of the renowned hospitality and tourism industry in
UK market. This organisation stands as a sixth largest contributor top export revenues and
also placed forth for workplace creation. Due to the effective business process of British
Hospitality Association, the organisation promotes almost 4.49 million people employment
and over 180000 trades.
The scope of the hospitality and tourism sectors means it has different variety of business
with different products, services and facilities for their clients. In today’s world apart from
the daily life routine often people wants to relax and they wants to spend some leisure time
with their friends and families (Mnnesota's tourist—travel industry, 1977, 1978). To make
the spending time more memorable and satisfied for them, the hospitality industry in UK
plays a major role in their services. Hospitality and tourism sectors comprises not only
hotels and restaurants, but it also includes organisations providing different category of
products and services like as attractions, casinos ,private clubs, accommodation, resorts,
camps, gaming and theme parks etc.
The main scope for this industry is to provide effective and quality of accommodation for
the travellers by which the organisation or the hospitality industry can attract more
customers in their business process. Bars and cafes also attract the clients to use their
services and it could enhance their growth in the competitive market. UK is one of the most
exciting places for the travellers. Different culture and different kind of travellers came in
UK throughout the year from all corner of the world. To boost up the scope of their
business, the organisation and the hospitality sectors needs to provide effective
entertainment facilities and tour guides in the services to make the customer more satisfied
in their need and deed basis.
 To make customers more satisfied in their business, now a day the hospitality sectors
of UK set up some important objectives in their business such as:
 To generate memories among the customers to increase their loyalty and long lasting
experiences
 To develop superior quality products and services for the customers
 To provide proper market segmentation for the different age group people and
according to their need basis
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 To add up some additional amenities in their service range to attract more customers
 To implement more technological innovation in their services to maximise the
customer’s satisfaction
Discuss organisational structures giving as example 2 different types
of hospitality organisations
Every organization has diverse goals and objectives to achieve so within every organization
different structures help or hold back the company from getting those objectives (Pleasure
travel markets to North America, 1997). According to the market research, there are several
organizational structure can be observed.
There are lot of types of organizational formation like as functional organization structure,
divisional organizational structure, line organizational structure, and matrix structure. Two
of the said structures are in use for thorough analysis in this assignment.
Functional group or functional organization structure
In this kind of structure, the organization’s diverse functions are done by dissimilar
individuals and those people who do comparable tasks are grouped mutually. From this
structural representation, it can be observed that the groups are planned by the
responsibilities and jobs that the people do (Sharpley, 2006). This type of structural
formation is mostly obtained by the small scale or medium scale organization in their
business operation. Due to the different departmental act in different ways this structure can
affect the whole coordination among the organization. To get this type of organizational
structure within the organization, the organization or the management of the organization
needs to maintain regular meeting on their organizational performances. By the help of
regular monitoring and assessing their task the organization can easily achieve their goals
and objectives. It involves various groups:
 Housekeeping service - It is part of any hotel industry which helps to satisfy
customers. For example: if customer observes that there is not properly arranged
then they are not happy with the services of hotel. They cannot take service in near
future as a result reputation of hotel is affected in a negative manner.
 Food and Beverages services – This section of the hotel arranges restaurants, cafes,
coffee shops etc. It gives satisfaction to the customers and as result earning of hotal
increases. This area requires to be clean every time so the ambience of hotel is not
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affected, as a result guest are happy and they invest their money in enjoying services
of hotel industry.
 Front desk and guest services: It includes various types of questions relating to
hotels are asked at this section of hotel. For example types of rooms provided, their
cost etc. Those who are working in this section must have command on their
language so that they can serve the guest in a best manner.
 Administrative section – It sort out all types of internal issues of hotels. For
example: if any room require any kind of development then they take effective
measures to do this.
 Financial department: Employees in this department records various transactions on
daily basis. So they come to know how much expenses are incured and how much
revenue are generates as a result profit and loss of an industry for a particular
financial year is known Human Resource department: In this department it is analyses how much are
required to operate the hotels accordingly vacancies are given through
advertisement. Best candidates according to their qualification are selected. Then
they are given training to enhance their skills so they serves the guest in a best way.
Divisional structure
In this kind of structure, the organization is separated into dissimilar sections which are
mainly based on the dissimilar environmental locations of the diverse fractions of the trade.
It is generally used within the larger organizations which controls their business within huge
environmental areas. In this structure, it can be observed that one head quarter of the
organization single handedly controls over all the different nations or different regions
business. As the dissimilar section of business work unconnectedly, the management can
change their processes based on the domestic matters which helps the organization to
achieve their goals and objectives quite easily and make their business a great success. In
this arrangement within the organization mitigate the local needs of the employees and
customers and develop their business in a competitive market to grow effectively (TSM
travel industry development planning papers, 1976). But the achievement rates of the
dissimilar divisions can differ as the diverse divisions have dissimilar strategies, which are
totally based on the domestic circumstances and the ability of the domestic market manager
to assemble those exact needs.
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From the above mention context it can be said that every organization in the hospitality
industry needs to adopt a well maintain organizational structure for their growth and
development but this structural representation must vary on their organizational size and the
requirement basis. There are different sectors of hospitality industry: Lodging
Accommodation: Accommodation is the main part of this industry which involves bed and
breakfast facility that are provided to guest. Quick service establishment: it means there are
various restaurants who makes competition with each other to be ahead in race and achieve
the goal. Catering business: In this business services are provided either in the restaurant or
in any party and function. For example: this services are given in birthday party, marriages
etc. Full Service Restaurant: It means meals of all types are available in this sector.
Give examples of hospitality related organisations and professional
bodies and assess their roles
In today’s world hospitality related industries growing rapidly. British Hospitality
Association is one of the effective industries in the UK market. The different types of
organisation in hospitality sectors categorised as governmental and nongovernmental
institutes and social and environmental institutes. The professional body of BHA may have a
number of function and role, such as:
 Set and measure professional test
 Provide support for progressing Professional Development by the help of learning
opportunities and apparatus for planning recording
 bring out expert magazines or journals
 Provide systems for professionals to get together and talk about their field of skill
 concern about Code of Conduct to direct professional actions
 contract with criticisms against professionals and also needs to implement corrective
actions
Analyse operational, managerial and legislative issues resulting from
recent developments affecting the hospitality industry
According to the recent development, it can be observed that there are several issues can be
highlighted which may affect the performance of the hospitality industry in different
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sections. The main issues within the hospitality industry is concerning on the operational
issues, managerial issues and legislative issues within an organisation (Sharpley, 2006).
Operational Issues
The operational issues is mainly depends concerning on two factors such as
 The firm level
 The unit level
According to the firm level, the organisation needs to assess their labour quantity. Labour
shortage is one of the most significant issues in the business operation of the hospitality
industry. Due to the less labour numbers in the organisation and cost containment,
hospitality industry is facing some difficult situation for their cost reduction in their products
and services. The important issue in this sector is employee turnover. Searching employees
who work for long hours is a critical task because many of the people are not willing to
work for long hours, weekends and holidays so it is a serious issue for this sector because
hotels are working for 24 hours and seven days. Further to find right employees, labour cost
related with employee turnover affects this sector. Similarly to be updates with latest incurs
the extra expenditure of this sector.
Managerial Issues
On the other hand there are some major managerial issues within the hospitality industry
which can affect their effectual business process. Those are such as
 Staff delegation
 Capital employment
 Financial Issues
In the organisation like BHA, the management needs to allocate proper work according to
the skill of the employee for their effective business growth. Otherwise, it cannot be helpful
for the management to achieve their desire goals in time. To run any business, capital
employment is a quite significant task for the managements. By proving effective product
and service range, the organisation needs to attract more investors in their business. To make
the costomer happy is the whole and sole motive of any sector. Various factors affects this
sector includes change in weather and changes in government policies which has positive
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and negative impact on this sector. Competition increases day by day which is another
challenge for this industry. To stay ahead in competition this industry works really
hard.Cleanliness is required to be maintain by this industry so management makes various
strategies to keep hotels and nearby environment clean.
Legislative Issues
To make an effective hospitality service, the organisation needs to aware about some legal
and legislative factors. Anti-discrimination law, alcohol licensing, health and safety and
environmental factors need to obtain by the management for their effective growth and
development. To make their business effective the management needs to analyse consumer
protection laws and trade practices (Tourism Industry Development, Marketing, &
Sustainability the Fifth International Conference on Asian Tourism (Incorporating Tourism
in Indo-China/Southeast Asia Conference), 2002). The BHA has practically promotion in
partnership with the UKCVA, the Institute of Directors, CBI, and the British Chamber of
Commerce for the visa transformation. It play significant role to develop in long term.
Government makes various law from time to time which is requires to be implemented by
this sector. For example: modification in tax policies has great impact on this sector in either
positive or negative manner. Legal factors are of two types that is internal and external.
Discuss the current image of the hospitality industry
According to the market research, it can be observed that all over the world the hospitality
industry growing at a fast speed which improves the economy of a nation. As per the data of
2002, there were more than 74,000 hotels developed in UK, in addition to this 15,000 were
prepared in 2009. Budget properties is the main the element to give boost to hospitality
sector. Number of rooms increase from 50000 in 2001 to 97000 in 2008 and it keeps on
increasing in the upcoming years. As per 2014, employment opportunities in this sector was
2.9 million jobs. As this industry shows development continuously but it does not receive
any government assistance in terms of tax. The main concern for the travellers is the safety
and security issues. In spite of significance of this sector in economic growth, it is providing
recognisation as other sectors are given. As competition is increasing day by day this sector
makes more and more efforts to satisfy tourist of various nations. To enhance their market in
the hospitality sector most of the organisation wants to deliver effective service and products
in their business. The employment growth in this sector which is raised by 3,31,000 from
2014 to 2016:
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 There were 1,58,000 jobs in licensed and unlicensed restaurants and cafes
 106000 jobs were provided in food services work.
 There were 65,000 jobs in hotels and other accommodations.
 46,000 jobs wer e provided by food shops
 36,000 jobs were given in house catering.
Present justified predictions for potential trends and developments in
hospitality
The main development of the hospitality industry is basically depends on several factors
like:
 Development and expansion of the mega hotels
 To build up more boutique hotels
 Hotels with different technology advancement
 Revise the salary of employees at regular interval so they work hard which results in
more development of this sector.
 Government should make various efforts to promote this sector like relaxation in
taxes which helps in lowering the price of product and services provided by this
hotels and restaurants, as a result tourism is also increasing. They require to develop
infrastructure and provide financial assistance to this sector to boost.
 They also require to make laws which motivates investment in this sector.
The potential development trends depend on some other factors for BHA. Those factors are
such as:
 No smoking zone in the pubs, restaurants and different hospitality industry
 Child friendly foodstuffs
 Free access of Wi-Fi in the hotel premises
 Different discount offer
 Implementation in product and service range
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 Social media promotion
 Special securities to female guest.
As per the study it was found that behaviour of hotel managers and owner related to various
issues such importance of tourist board, relation with other competitors, strategies to
increase hotel services should be properly understand. It assist that how these factors results
in development of this sector. For example: if industry has good relation with its competitors
then it enhances its goodwill in the market.
Produce an impact analysis for the predicted trends and developments
Predicted trend and development in the hospitality industry make major impact in the whole
system (Travel & tourism, 1994). By the help of predicted trend and development most of
the organisation in hospitality sectors wants to expand their business and attract customers.
There are some of factors that make impact for trend and developments such as
 Use latest technologies to impress customers, in this competitive trend industry
consider customer as a king so it becomes priority to satisfy consumers. For
example: Using hotel mobile apps have lots of features which assist people to know
which is the best hotels for them, rates comparison, easy booking etc makes
convenience for them.
 Adoption of green technology- It is important for both industry, by using various
practices like placing solar powered pool heaters which assist in saving electricity.
 Enhance focus on health and wellness offerings: this sector pays attention on the
health and wellness of their customers, it covers consumer of all age groups.
 Personalised services to customers: Many hotels are using various figures to
personalise their services to guest which is helpful for them. For example apps are
developed which makes use of artificial intelligence to give personalise dining and
recreation facilities to their customers.
Conclusion
In this overall paper the researcher has depicted the overall scenario of travel and tourism
industry. The impact of the travel and tourism industry has been analysed and it can be
observed that, how the travel and tourism industry predicts their development in the
hospitality industry.
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REFERENCES
Books and Journals
Jeffries, D. (1985). The travel industry. Tourism Management, 6(2), pp.149-150.
Lingyun, Z. (1991). China's travel agency industry. Tourism Management, 12(4), pp.360-
362.
Mnnesota's tourist—travel industry, 1977. (1978). Annals of Tourism Research, 5(3), p.367.
Pleasure travel markets to North America. (1997). [Washington, D.C.]: U.S. Dept. of
Commerce, International Trade Administration, Tourism Industries.
Sharpley, R. (2006). Travel and tourism. Thousand Oaks, CA: Sage Publications.
The law and the travel industry. (1988). Annals of Tourism Research, 15(2), p.299.
Tourism Industry Development, Marketing, & Sustainability the Fifth International
Conference on Asian Tourism (Incorporating Tourism in Indo-China/Southeast Asia
Conference). (2002). Journal of Travel & Tourism Marketing, 11(1), pp.117-126.
Travel & tourism. (1993). Brussels, Belgium: World Travel & Tourism Council.
Travel & tourism. (1994). East Lansing, Mich.: World Travel & Tourism Tax Policy Center.
TSM travel industry development planning papers. (1976). Annals of Tourism Research,
4(2), p.113.
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