Impact of Income, Wealth, and Employment on Hospitality Sector

This report analyzes the external business environment of the hospitality sector, focusing on the UK market. It examines the concepts of income and wealth, discussing their distribution and impact on the industry. The report highlights the role of income inequality, the distribution of wealth, and occupational distribution within the hospitality sector. It also explores the implications of employment trends, particularly the demand for various roles such as waiters, flight attendants, and managers, and their influence on the labor market. The report references the Ritz Carlton as an example, discussing how these economic factors affect the services offered and the customer base. The analysis incorporates data on the size of the UK economy and the expected growth of the hospitality sector, providing a comprehensive overview of the economic factors influencing the industry. The report concludes by emphasizing the importance of understanding these elements for businesses in the hospitality sector.

TASK 1 (1.3)
EXTERNAL BUSINESS ENVIRONMENT

WHAT IS INCOME AND WEALTH?
Income is referred to as money received by an individual on
regular basis in turn of work done. Through this individual can
effectively fulfill his wants and needs. For instance, wages and
rent from property are considered income.
Ritz Carlton is luxury hotel brand that offers services at higher
prices. Thus they cannot be afforded by all types of customers.
Wealth of company is influenced by the kind of services
offered by the manager of Ritz Carlton. It is considered as
value of all assets owned by individual. For example, wealth
includes financial and real assets.

CONTINUED....
The services offered largely depends on the skills and abilities
of the employees. It is essential for business to upgrade the
knowledge of personnel through training programs.
In relation to employment it has been determined that 6% of
individuals perform in sales and customer service operations.
This presents that Ritz Carlton posses smaller number of
workers who will be employed in case of vacancy.

INCOME DISTRIBUTION
• The role of income distribution is effective in
providing idea regarding several wage levels and
pattern of earnings in relation to individual working
in a specific occupation.
• In real terms income inequality is prevaling in UK.
This represents that more than 13.5 million people
are residing in poverty.

WEALTH DISTRIBUTION
• This can perfectly equal or unequal in the society.
• In real sense wealth is unequally distributed. There
are certain individuals who possess greater
proportion of wealth that includes assets and goods
that are being produced by firm in order to satisfy
needs and wants of consumers.
• This leads to creation of inequality.

OCCUPATIONAL DISTRIBUTION
The key region wherein greater employment is found
in hotel and restaurant sector. This involve
• Elementary occupation
• Managerial about
• Skilled trade about

IMPACT OF INCOME, WEALTH, EMPLOYMENT
AND OCCUPATIONAL DISTRIBUTION ON
HOSPITALITY SECTOR
• Impact the demand and supply of labour as well as
suppliers to hospitality sector.
• UK hospitality industry employ in excess of 2
million in several establishment and is expected to
increase to 2.9 million by 2020.
• Increasing demand for waiters, flight attendants,
travel agents, food services and lodging managers.

REFERENCES
Rodiek, C., 2008. External Environmental Analysis - The U.S. Television Manufacturing
Industry. GRIN Verlag.
Size of UK economy. 2015. [Online]. Available through:
<http://pwc.blogs.com/press_room/2014/07/size-of-uk-economy-to-overtake-france-by-
2020-and-narrow-the-gap-with-germany-by-2030.html>. [Accessed on 25th Febraury
2016].

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