A Critical Analysis of Brexit's Impact on the Hospitality Industry

This report delves into the contemporary issues affecting the hospitality industry, with a specific focus on the impacts of Brexit. It examines the challenges and opportunities faced by the sector, using the Hilton London Metropole as a case study. The report analyzes key areas such as staffing, food prices, consumer confidence, and the rise of staycations, all influenced by Brexit. It highlights the importance of adapting to changes in customer expectations, technological advancements, and external forces. The report suggests strategies for the hospitality industry to mitigate negative impacts, including fostering a positive work culture, leveraging technology, investing in employee development, and adopting flexibility. The conclusion emphasizes the need for proactive staffing approaches and adaptability to ensure the industry's resilience in the face of Brexit-related challenges. The report also references a range of academic sources to support its analysis.

CONTEMPORARY
ISSUES

Table of Contents
INTRODUCTION...........................................................................................................................1
MAINBODY .................................................................................................................................1
1.Critically analyse the key impacts that Brexit is likely to have on the Hospitality industry: . 1
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The work which comes within hotel management will always not easy. As hotel industry
is considered as fastest growing industry in the world(Yam, Raybould and Gordon, 2018).
Hospitality industry relates with various contemporary issues which will affects its operational
value and change has to be implemented into the industry. The constantly changing in behaviour
and expectation of customers is that customers are considered as a king so hospitality industry
have to make sure about their expectations and demand in relation to build the effective relation
ship with them. Because of the continuity in changing technology will definitely creates unstable
environment into the hospitality industry as they have to continuously look into their operational
changes. Political and security challenges, these external forces will make issues like industry
have to face problem related to lack of securities in relation to surveillance systems etc.
Hospitality industry depends upon their human resource which will attain the value of providing
with best experience of hotels so issues in relation to labour shortages and irregular working
hours impact the hotel industry. Below report is based on the hospitality industry “Hilton London
Metropole” is located in London, UK, relates with hotel chain of Hilton international. Designed
by modern architect Richard Seifert. Report consists with topic challenges and opportunities in
context of hospitality industry.
MAINBODY
1.Critically analyse the key impacts that Brexit is likely to have on the Hospitality industry:
In relation to the hospitality industry, this report concerned with the hotel industry like
Hilton London Metropole which is located in London,UK(Sanjeev and Birdie, 2019). This hotel
industry is the brand chain of Hilton international which are having operations to franchises and
manages a large portfolio of resorts and hotels. The area of their operations serving is in
worldwide. Hotel Hilton London is having a grade of 4 star with approximately 1060 rooms and
with their conference centre which is located in Edgware Road in central London. As this hotel
industry deals in large operations for their customers and quests so they have to work according
to the different cultures and customers expectation in relation to serve them with excellent
services in which they are currently dealing to enhance their experiences. This hotel industry
provides with product and services like by offerings extra services complimentary breakfast and
bed, packages related to family fun and facilities related to conferences. They deals in their target
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market which is business travellers and leisure travellers. Due to their Franchise based business
they really don't deals in investing in new priorities development, Developer are engage in their
upfront cost and they can starts with management fees and collecting franchise on hotel open.
The benefits provided by them to their employees and staffs are paid holidays, phones, life
insurance etc. The challenges and opportunities in relation to Brexit, firstly Brexit relates with
the situation where both European union and UK were separated on particular agreement is that
UK joined the European economic community Which will become the part of European union
when it created in 1993. Brexit impact the hospitality industry of UK in several ways is that:
Staffing: In this process,Brexit will impact and creates changes in relation adopt the approach of
staffing which involves with changes in the UK immigration system relates with that of January
31st 2021 (O’Cass and Wetzels, 2018). Any employees who' having less than £ 20, 480 will not
considered or allowed as employees in this particular country, this was quite huge impact on
hospitality industry which was relies on worker who's are non-UK based considering to fill the
entry level jobs. Basically the situation of human resource in Brexit, relates that currently 25% of
workforce in hospitality industry are from EU nationals which clearly means as many as from
one in respect of their 4 roles will remain unfilled. Hilton has to specific about their human
resources in relation to built the value against this Brexit structure.
Food prices: This department will clearly affected through the formation of Brexit is that the
price of food are predicted to rise in the range of 3 to 5% approximately and this will not exactly
considered as a lot of rise. So if any change in relation to price will be huge blow for the bottom -
line. Businesses are recovering from the impact of pandemic situation like Covid-19 and these
are the economic impact. Hotel industry like Hilton London Metropole will have to make proper
pricing strategies to overcome these impacts.
Confidence of consumer: If there is a threat relates to impact the customer money this will
creates direct impact on industry like Hilton(Kandampully, Zhang and Jaakkola, 2018). As if the
economy will unstable in relation to uncertainty of Brexit then people will spent with less
disposable of their income which means they will not prefer to go to the hotel dining out. By rise
in the prices of food items, eating out for the customer will become difficult and more expensive,
and this situation will make difficult for the hotel industry like Hilton to cope up with this pricing
as they have to make pricing bit more flexible if lose would happen sometime.
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Staycations: Expensive prices in relation to holiday prices of Europe as a result of Brexit, will
might help in increase this trend. In this current situation of Covid-19, the holiday maker of UK
and EU will going to take advantage of their cheaper prices in UK in relation to make better
exchange rates will enhance the value of tourism, which will going to provide with benefits to
the hospitality industry(Boella and Goss-Turner, 2019).
So here are some of the possible responses by the hospitality industry which will going to
be beneficial in context to manages their operations during the Brexit situation is that the huge
problem which states in this industry is the shortage of staffs. They needs to motivate their staffs
for betterment of hospitality industry. So here are some of the possible responses that will taken
by hotel industry like Hilton is that:
Make positive work culture: By considering the team as a priority and by creates a culture that
will assist the staff and employees working in this hotel. By giving more chances to the worker
in taking their views in respect of any decision-making this will leads to provide them
confidence through engage in decision meeting activities. This approach will generates retention
value for this particular Hilton London, hotel to cope up with shortage of their workers even in
Brexit time(Baum, 2019).
Do more with Less: By including technology to automate processes in respect of hospitality by
doing more with less. By involving with activities of information flow across the key touch
points, integrated staffs, digitize checklists and that of inventory management. This will reduce
the working time of managers in dealing these activities on daily basis and they will focus on the
training teams and will build the working environment in quite positive manner too. In context of
hotel industry like Hilton London Metropole they can induce with latest technical trends to
reduce the operational activities time in evaluating them.
Invest in the team: Hotel industry have to invest in their teams in respect of their staffs and
employees. By investing in employees for their continuous growth as a result of possibility of
retention will be increase. By showing the team is that working in hospitality industry will be
worthy for them and having with exciting career options in future too. By investing in activities
to retain the employees Hilton London will grow their human resource as effective as they can in
relation by serving them with care.
Be Quite flexible: By adopting a approach of bit flexibility into the hotel industry, employees
will not pressurized to do anything on sudden basis. Research shows that staffs working in this
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hotel industry will stay at the workplace, because of the flexible nature of doing business. By
giving them their way of doing work will leads to generates effectiveness but sometime they
have to bear losses also. Challenges and opportunities for hospitality industry in relation to
situation of Brexit is that Data security issues, irregular flow of cash, issues related with
housekeeping, change in the expectations of guest in serving them with more reasonable prices
and challenges of hiring and retaining the staffs as this hotel industry has to put lots of efforts in
making their employees retention base strong. Opportunities are by making changes in the
process of operations through work on Restaurant management at large. In food and beverages
management(Goh and Jie, 2019).
CONCLUSION
It has been concluded from the above study is that every business in the situation of
Brexit have to work on their staffing approach on prior basis, to built their possibilities of
retaining in the hotel organisation. Some of the impact which happen during the situation of
Brexit is that on staffing of their people, rise in the prices of food items, hotel industry have to
develop the confidence of their employees in more effective manner. So as to overcome or to
deal with these situations industry have to work on making work culture positive and adopting
the approaches of flexibility in the hotel industry.
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REFERENCES
Books and Journals
Goh, E. and Jie, F., 2019. To waste or not to waste: Exploring motivational factors of Generation
Z hospitality employees towards food wastage in the hospitality industry. International
Journal of Hospitality Management.80. pp.126-135.
Baum, T., 2019. Does the hospitality industry need or deserve talent?. International Journal of
Contemporary Hospitality Management.
Boella, M.J. and Goss-Turner, S., 2019. Human resource management in the hospitality
industry: A guide to best practice. Routledge.
Kandampully, J., Zhang, T.C. and Jaakkola, E., 2018. Customer experience management in
hospitality. International Journal of Contemporary Hospitality Management.
O’Cass, A. and Wetzels, M., 2018. Contemporary issues and critical challenges on innovation in
services.
Sanjeev, G.M. and Birdie, A.K., 2019. The tourism and hospitality industry in India: emerging
issues for the next decade. Worldwide Hospitality and Tourism Themes.
Yam, L., Raybould, M. and Gordon, R., 2018. Employment stability and retention in the
hospitality industry: Exploring the role of job embeddedness. Journal of Human
Resources in Hospitality & Tourism.17(4). pp.445-464.
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