The Contemporary Hospitality Industry: A Report on TUI Group

This report provides a comprehensive analysis of the contemporary hospitality industry, with a specific focus on TUI Group. The report begins by defining the scope of the hospitality industry, including its various types of businesses, diverse products, and services, and the relationship between hospitality and the travel & tourism industry. It then delves into the operational and functional departments within the industry, examining their roles and contributions to local, national, and international economies. The report further explores different operational roles within the hospitality sector, categorizing them by skill level and examining the skills required for success, including practical and technical skills. It also identifies skill gaps and their impact on the industry. The report concludes by analyzing the internal and external factors affecting the hospitality industry, as well as potential trends and their effects. The analysis is supported by examples from TUI Group's operations. The report covers topics like current structure and scope of hospitality industry, examines the existing as well as potential skills required by the employees of hospitality industry and access internal as well as external factors which can affect the hospitality industry. Further, analyse the existing and potential trend that can affect hospitality industry.

The Contemporary
Hospitality Industry

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Types of business in hospitality industry and diverse products and services which they
offer..............................................................................................................................................1
P2 Range of operational and functional department....................................................................2
P3 Contribution of hospitality industry to local, national and international economies.............3
Task 2...............................................................................................................................................4
P4 Different operational roles in hospitality industry..................................................................4
P5 Examination of skills required for roles in organisation........................................................5
Task 3...............................................................................................................................................6
Covered in PPT............................................................................................................................6
Task 4...............................................................................................................................................6
Covered in PPT............................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCE.................................................................................................................................8

INTRODUCTION
Hospitality industry has become one of the major contributors that have enhanced
economy of various countries as it attract tourist from national as well as international countries.
Contemporary hospitality industry has become the independent sector which effectively
participates in the dynamic environment (Bharwani, Mathews and Ghura, 2019). It functions to
provide leisure to tourist so that they can thoroughly enjoy their vacations. For the better
understanding of report TUI multinational tourism company has been selected whose
headquarter is in Germany. It provides leisure, hotel, entertainment, travel and tourism services
to the guest. This report cover topics like current structure and scope of hospitality industry.
Examine the existing as well as potential skills required by the employees of hospitality industry.
Access internal as well as external factors which can affect the hospitality industry. Further,
analyse the existing and potential trend that can affect hospitality industry.
Task 1
P1 Types of business in hospitality industry and diverse products and services which they offer
Hospitality industry refers to the broad category of services which aim to satisfy people
need and provide them with experiences which will last for a long period of time. It includes
lodging, hotels, event planning etc. it is unique because the income of hospitality industry mainly
depends upon the customer’s free time when they want to relax and take a break. Talking about
TUI group it aims to provide customers the best services so that they can retain them and spread
word of mouth. The focus is shed on customer satisfaction. Hospitality industry includes various
involving activities and services so that customer is getting every sort of enjoyment while they
are having a stay. It is very essential for the company to understand the needs and wants of the
customer so that they can provide them what they want and satisfy them (Balaji, Jiang and Jha,
2019). TUI Group is also aware about that and they have classified their product and services on
basis of:
Accommodation: Living place is provided to the customer, a room in a hotel. So that
they can stay with their family without any hassle and if any problem they can call room service.
Restaurants: To make the experience premium hotel try to provide food according to the
demand of their customer which is known as restaurants.
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Pubs: Hard drinks are served to the customer here which includes beers, vodka etc so
that they can enjoy their holidays.
Night clubs: This are opened from evening to early morning so that people can drink,
dance and enjoy and make their holidays count and memorable.
Relationship between hospitality and travel & tourism industry
Both complement each other as travel and tourism industry search for hotels for the
tourist and it is the duty of hotels to satisfy the needs of the tourist. Travel and tourism industry is
like a connecting link between tourist and hospitality industry (Khatri, 2019). So TUI Group
knows the importance of having a healthy relationship with travel and tourist agent so that they
can get the customer.
Tangible and intangible nature
Tangible services are those which can be touch, which have physical existence. Like for
example TUI Group never compromise with hotel rooms, food, drinks which are all of tangible
nature.
Intangible are those which can only be felt. They don’t have any physical existence, like
for example it refers to the quality provided by the company (Čech, Jindřichovská and
Neubauer, 2019).
P2 Range of operational and functional department
Operational department main job is to increase the productivity of the company by
implementing techniques which will result in increase in profits. TUI group operational dept.
do complete customer analysis, they feed the records of the customer, analyse their needs,
take feedback so that the profit and productivity can be maximised.
Food production: The food is served in hotel according to the trend and demand of
the customer. The focus is on satisfaction and exposure to the tourist so lot of western food
is also provided.
Housekeeping: Maintaining the rooms according to the expectation of the customer
to make them happy and satisfied is the work of housekeeping department (de Correia,
Lengler and Mohsin, 2019). In TUI proper training is given to the employees to keep the
hotel rooms clean and to follow hygiene culture in hotels to meet the needs of the
customers.
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Functional department
Marketing and sales: The role of marketing dept. is to spread the news about the
hotel to large segment of customer. They use print media, social media, magazines etc to
spread the awareness about the hotel. It helps in increasing the market share of TUI Group.
Production with HRM: Recruitment of the candidates according to the required
profiles are done by the HRM dept. it is a very essential task as the employees are the face
of the organisation and if an organisation need to be good the employee need to perform and
click (Martin-Rios and Ciobanu, 2019). The manager of the hotel understands customer and
tell the production dept. what type of food is required according to the taste and preference
of the customers.
P3 Contribution of hospitality industry to local, national and international economies
Hospitality industry pays highest percentage of tax to the government, by that it can
be said that the contribution of hospitality industry is huge to an economy and its growth. The
company is always in a need of a team player who can work collectively to the interest of the
organisation to increase the productivity of the company. Contribution by TUI Group to
local, national and international economy is as follows:
Local: The company is providing job opportunity to the people in their radius where
they are operating. It results in decrease in unemployment and increase in standard of living
of the locality where it is operating (Myo, Khalifa and Aye, 2019).
National: The company is paying tax to the country where they are operating. They
are giving employment to the people in the host country and if the tourists are coming to the
hotels they are spending. The country is getting tourism which is good for an economy. Other
than this the company is involved with social cause so they are yearly doing multiple CSR
activities which is good for the country.
International: In international country TUI Group are paying taxes to the country
where they are operating. Other than that they are improving the living standard of the people
around by providing them job and opportunities. By introducing new technology they are
making work easy for the people and they are also promoting tourism in international
country.
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Task 2
P4 Different operational roles in hospitality industry
The work of the employee in hospitality industry is to give services to the customer and
identify in the process what they are looking for and help them to meet their expectation. The
end result should be positive feedbacks which will result in improve efficiency and
performance of the company. Operational roles generally mean set of activities required to
increase the productivity of the firm to reach the new heights.
Type of labour and position in organisation
Skilled these are the employees who are experienced, educated and degree holder. They
work towards achieving the organisational goals. They try to manage all activities so that the
efficiency can be attained.
Semi skilled they are having an exposure of part professional training but in order to do
well in an organisation they need to be trained more. Experience need to be there also.
Unskilled they are not educated they work in the lower level of the management but
there contribution is also essential for the management.
The operational role of TUI Group is as follows:
Front line manager the role of the front line manager is to keep all the essential and
basic information of the employee and provide them with the information which they require
(Peters, Kallmuenzer and Buhalis, 2019). The manager of TUI Group is managing queries of
the customer, providing all the information and handling all the data which is related to the
customer.
Back office management: they are managing all the data of the customer and they are
analysing the needs of the customer and then preparing services according to the needs of the
customer. This dept. helps in increasing the effectiveness of the company by meeting the needs
of the customer.
Supervisory they are the people who manage and record all the activities and tell the
organisation what are the changes which are needed to be implemented so that the productivity
of the company can be increased.
Production this dept analysed the customer pattern and do production in way so that
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there is less idle stock and no shortage. It helps in gaining the competitive advantage to the
firm which will help in sustaining the huge competition and growth.
P5 Examination of skills required for roles in organisation
It is very necessary to possess skill set if the employee wants to perform and do well in
hospitality sector. More the skills, more they can contribute to the organisational goals. Talking
about TUI Group the manager of the company have required skill set to manage the work
allotted to them and they are contributing positively to the company productivity. Some of the
skill set required in hospitality industry are as follows:
Practical skills: practical knowledge is essential if the employee is working in the
hospitality sector, it can come with experience only (Pusiran and et. al., 2020). The company
give proper training to its employee, proper orientation is done so that the employee can learn as
much they can but the proper practical knowledge comes with when the employee is exposed to
a work environment.
Technical skills: it helps in adapting to the changes in the work culture, more flexible
the employees are better is for the company. Technical skill of TUI manager is using social
media to their advantage, online booking and updating technology when required.
Drivers for skill gaps
Skill shortage: Skill is important for any organisation and their employees. If the
employee is suffering from lack of skills like poor communication, poor listening skills,
language barrier etc. it may result in less productivity which can affect TUI Group. So it is
essential to fill the skill gap.
High labour turnover: if the employee is not satisfied with the salary they are getting
they do not perform to their potential and even worse they decide to leave the job in some
cases. It affects the productivity of the organisation (Pius and et. al., 2020).
Impacts on hospitality sectors: increase in the workload of the employee due to
pressure and targets. High operating cost and new working methods affect the employee
productivity a lot. TUI Group works on developing and training of the employee so that they
are ready for such challenges and it does not affect them. Providing proper training and
development courses will lead to increase performance of the employee (Surucu and Sesen,
2019).
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Task 3
Covered in PPT
Task 4
Covered in PPT
CONCLUSION
From the above report it has been determined that hospitality industry offer quality
services to the tourism basis on their specification or requirement which stimulate the interest of
traveller. These services are in form of hotel or restaurant facility, availability of gym facility and
entertainment services which favourably enhances the operation of whole hospitality sector.
Thus, both the internal as well as external environment needs to be effectively analysed based on
which required skill and knowledge needs to be upgraded by employees. Therefore, it helps in
improving the overall performance and promotes sustainable functioning of entity.
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REFERENCE
Books and journal
Bharwani, S., Mathews, D. and Ghura, A. S., 2019. Business model innovation in the Indian
hospitality industry. Worldwide Hospitality and Tourism Themes.
Čech, P., Jindřichovská, I. and Neubauer, J., 2019. Achieving a great reputation for corporate
social responsibility: study from the Czech hospitality industry. Scientific papers of the
University of Pardubice. Series D, Faculty of Economics and Administration. 45/2019.
Balaji, M. S., Jiang, Y. and Jha, S., 2019. Green hotel adoption: a personal choice or social
pressure?. International Journal of Contemporary Hospitality Management.
de Correia, R. J., Lengler, J. and Mohsin, A., 2019. Entrepreneurial approaches to the
internationalisation of Portugal’s hotel industry. International Journal of Contemporary
Hospitality Management.
Myo, Y. N., Khalifa, G. S. and Aye, T. T., 2019. The Impact of Service Quality on Customer
Loyalty of Myanmar Hospitality Industry: The Mediating Role of Customer
Satisfaction. International Journal Of Management And Human Science. 3(3). pp.1-11.
Martin-Rios, C. and Ciobanu, T., 2019. Hospitality innovation strategies: An analysis of success
factors and challenges. Tourism Management. 70. pp.218-229.
Pusiran, A. K., and et. al., 2020. Hospitality internship program insights. Worldwide Hospitality
and Tourism Themes.
Peters, M., Kallmuenzer, A. and Buhalis, D., 2019. Hospitality entrepreneurs managing quality
of life and business growth. Current Issues in Tourism. 22(16). pp.2014-2033.
Pius, A., and et. al., 2020. Contemporary Quality Management Approaches and Practices Within
the Hospitality Industry. In Contemporary Management Approaches to the Global
Hospitality and Tourism Industry (pp. 1-34). IGI Global.
Khatri, I., 2019. Information Technology in Tourism & Hospitality Industry: A Review of Ten
Years’ Publications. Journal of Tourism and Hospitality Education. 9. pp.74-87.
Surucu, L. and Sesen, H., 2019. Entrepreneurial Behaviors in the Hospitality Industry: Human
Resources Management Practices and Leader Member Exchange Role. Revista de
Cercetare si Interventie Sociala. 66.
Online
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TUI Travel SWOT Analysis. 2020. [Online]. Available
through:https://www.mbaskool.com/brandguide/tourism-and-hospitality/13802-tui-travel.html
TUI Ag SWOT Analysis. 2018. [Online]. Available through:<https://www.essay48.com/term-
paper/9124-Tui-Ag-Swot-Analysis>
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