Comprehensive Report on the Hospitality Industry: Merchant Hotel

This report provides a comprehensive overview of the hospitality industry, using the Merchant Hotel in Northern Ireland as a case study. It details the various services offered, including accommodation, food and beverages, travel and tourism, and entertainment and recreation. The report then explores the operational departments (housekeeping, food production, food and beverage service, and front office) and functional departments (marketing, human resources, accounting and finance, and purchase) within a hotel setting, emphasizing their interrelationships. The contribution of the hospitality industry to the economy, the importance of licensing and franchising for global expansion, and the different operational roles and required skills are discussed. The report also evaluates skill gaps within the industry and proposes solutions to address them, concluding with an assessment of the industry's overall impact and future outlook.

Contemporary
Hospitality Industry

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Describe various services that are offered by a hospitality organisation...............................3
Discussion related to operational and functional department in hospitality industry............5
Write down the contribution of Hospitality Industry.............................................................6
Evaluate the interrelationship of operational and function department..................................6
Assess the importance of licensing and franchising in development of global economy......7
Discuss the different operational roles that are required in hospitality industry....................7
Write about the skills that are required to perform the operational functions........................8
Evaluate the skill gap and its impact on the hospitality organisation.....................................9
Solutions to address these skills gaps.....................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals...............................................................................................................11

INTRODUCTION
Hospitality industry is a wide industry and includes various services such as event planning
food entrant lodging travel and tourism as well as theme parks (Ma, Gu, Wang and Hampson,
2017). It is important to provide quality services to the customers to retain them as well as it
helps to attract investors in this report there is dispersion related to the merchant hotel which is a
five star hotel and established in Northern Ireland. In which report there is dispersion related to
various business activities of hospitality industry as well as the departments that consists of
business. It is important to know the relationship of operational and functional units as they
contribute to success of the company. It is aimed at the licensing and franchising helps the
organisation to grow and provides opportunity to expand their business at global level. There is
requirement of various roles and responsibilities that the employees need it is connected to the
skills required and the gaps so that they can be filled and it helps in success of the organisation.
MAIN BODY
Describe various services that are offered by a hospitality organisation
It is vital to know that hospitality is a broad industry and there are diverse services that are
provided by the industry. The various options that are available are discussed below:
Accommodation it is important to note that accommodation is important part and it includes bed
and breakfast enterprises. It is seen that the Merchant Hotel provides the facility of
accommodation to all the customers (Bogicevic, Bujisic and Feinstein, 2018). It is vital to note
that it includes hotels and accommodation services the main three components in the industry or
discussed below:
 Lodging- It is seen that the people who travel from one place to another need a place
where they can take rest. It can be set as centre so it is important to note that hotels
provide the facility of lodging for them and that provides them room to stay.
 Suites- It is seen that hotels also provide the services of luxury suites that provide the
option of stay at the same manner. It is evaluated that they provide more comfort and are
most suitable at the same time there expensive in comparison with the other regular room
services that are provided.

 Resort- It is another kind of services for accommodation that are provided to travellers
(Khan and Rahman, 2017). It is a place that is close to nature and provides a break from
the routine that is followed in normal and gives good surrounding.
Food and beverages: It is another integral part of hospitality industry. Each and every person
wants to have food when they stay in any of the services that are provided by hotel. It relation to
the Merchant Hotel they have a record of providing quality as well as hygienic food to all its
customers that help to retain the customers in the organisation. There are various options that are
followed in relation to providing food and beverage services to the customers. There are number
of options that are available in the form of food and beverages and that is discussed below:
 Restaurants
 Fast food chains
 Retail and food stores
 Takeaways
 Business and industrial catering
 Leisure and outdoor catering
 Hotels
 Casinos
 Bars and pubs
It is vital to take care of the food that is being provided to the customers. Along with that the
culture of the place also matters with the food that is being provided by the restaurant to all the
customers. It is seen that The Merchant Hotel has its own in house restaurant that provide food
services to its customers.
Travel and Tourism: It is seen that people consider travel and tourism as synonym of
hospitality industry (Lee, Morrison and Jang). It is seen that travel and tourism includes airlines,
trains, cruise and ships. It helps to arrange the facility to the clients for the purpose of travelling.
It is seen that it provides all the facilities that are essential for the purpose of travelling. It is a
customer focused service.
Entertainment and Recreation Industry: It is a key part of hospitality industry full stop it is
vital to entertain the customers and entertainment plays a vital role nowadays. If the organisation
lacks form in entertainment then there are less chances of being successful. It is seen that

organisations provide various facilities that help the entertainment of the clients some of the
activities that enhance the experience of the guest are discussed below:
 Sports and Gaming: It is seen that people come out of their homes basically for the
purpose of travel and entertainment (Genc, Genc and Aytekin, 2020). Sports and gaming
is a good option that is provided by The Merchant Hotel for enjoyment of the guests.
 Bars: It's usually a nice experience to sit around a table with family or friends and have a
few of drinks. As a result, bars are an important aspect of the hospitality industry's
entertainment sector. It is also provided by The Merchant Hotel.
Discussion related to operational and functional department in hospitality industry
The operational departments of hotel play a vital role in working smoothly and achieving the
goals and objectives. The four important operational departments in The Merchant Hotel are
discussed below:
Housekeeping department: it is important department that impacts the guest directly. It is
related to their safety hygiene and cleanliness etc. The housekeeping department has to enhance
the experience of the guest by providing them good and clean rooms.
Food production department: It is also known as kitchen that includes chef, cook,
kitchen manager and all the individuals that are required to cook food for the guest (Dogonyaro,
2021). In relation to the merchant hotel the hygiene is taken at most care so that quality food is
provided to their guest.
Food and beverage service department: It is another important department that takes
care of operation of drinking needs of the customers. This department includes waiters that
provide the drinks to the customers as per their demand and serve them effectively.
Front office department: It is one of the most important departments that plays a vital
role in the brand value of the hotel. The guest interact with the front office executive for the very
first time and a person creates the impression on them (Ukpabi, Olaleye and Mogaji, 2018). In
relation to the merchant hotel the person sitting at front office always reads the guest and
welcomes with a smile on face that helps them to deal with them effectively
The functional Department also plays a vital role in success of a business organisation. It is
important that all the functions should have coordination among them and that helps in achieving
the goals and objectives successfully. The functional departments of The Merchant Hotel are as
follows:

Marketing Department: Plays a vital role in an organisation at it helps to promote the
brand. It is seen that the merchant portal performs a research that helps to analyse the needs and
wants of the customers and then provide them the advertisement in such a way that helps the
organisation to enhance its sales (Martínez and Nishiyama, 2019).
Human resource department: Every organisation needs effective HR department that
help them to fill the vacancy of right person at right time at right place. It also helps to train the
employees and provide effective services to the customers.
Accounting and finance department: It is important to formulate budgets and maintain the
quality of money for every organisation (MUSYOKI, BOR and TANUI, 2017). In relation to the
merchant hotel the finance department helps to arrange money and formulate financial statement
that help to you know all the investors about the position of the organisation.
Purchase department: Procurement department also plays a vital role in the organisations
that take care of accessing the best quality raw materials that help in providing competitive price
and operate efficiently in the environment.
Write down the contribution of Hospitality Industry
 It is vital to note that they provide good employment opportunity to the persons. It is seen
that it contribution to the GDP of the nation.
 It is seen that hospitality sector has contributed to £59.3 billion in Gross Value Added of
UK.
 Along with that it is observed that it provides around 3% to the total output of UK.
 As per the reports the hospitality industry has global turnover of around $7.6 trillion
Evaluate the interrelationship of operational and function department.
It is important to note that with the help of proper coordination all the organisations are able to
operate effectively (Rezapouraghdam, Alipour and Arasli, 2019). It is seen that there is good
relation among both operations and functions of an organisation. It is so as all the work that is
done by an organisation is called operations and to carry out those operational work all the
functions of The Merchant Hotel work together.
 First of all the HR department of The merchant Hotel helps to select the employees for all
the operational work such as housekeeping, front office etc. Along with that if there is
any problem that is faced by employees of the operational department them tell them to
HR.

 The marketing department helps to provide information about the guests and their
preference that is helpful for front office department.
 It is seen that the purchase department plays a vital role and helps food department by
providing them quality raw material that satisfy the needs and wants if the customers of
The Merchant Hotel.
Assess the importance of licensing and franchising in development of global economy
International franchising is a form of expansion that can be used by new or existing
franchises to expand into new geographic areas and markets. Unlike in the franchisor's home
country, where the franchisor grants the franchisee a licence to use the franchisor's marketing,
branding, and operations, international franchising usually entails selling the franchise rights to a
third party to act as the master franchise in that area, allowing them to open company-owned
outlets and sub-franchise in that area (Chen and Wu, 2017). It helps The Merchant Hotel to work
effectively. International franchising is a good way for an existing company or franchise to grow
their operations in a way that is both less risky and more likely to succeed than expanding on
their own. The advantages are as follows:
 It helps to expand the operations the operations and provide services in other countries as
well. This will help The Merchant Hotel to expand its operations in Asia.
 Owners of master franchises are frequently willing to pay huge fees for exclusive rights
to franchises in their country, as it provides a significant opportunity for growth, as it
allows them to recruit their own franchisees, run franchises, and receive royalties from
their sub-franchisees.
A licence is an arrangement in which a licensee rents the rights to a legally protected piece of
intellectual property from the licensor the company that owns or manages the property for use
with a product or service. It is also a method that helps The Merchant Hotel that helps them to
expand their operations.
 This method will help the hotel to get extra payment by giving them legal permissions.
 They are able to reach new market and that will help to serve more and more customers.
Discuss the different operational roles that are required in hospitality industry
There are various operational areas in The Merchant Hotel. So there is need of various roles
and responsibilities that help to perform the work. The various operational roles in relation to
The Merchant Hotel are discussed below:

Front Desk Services: The person that meets the customers at first and solves all the queries
is called front office executive. This person comes in regular contact with the guests.
Housekeeping: Keeping the guest rooms clean and neat is a must. The housekeeping service
is usually in charge of every aspect in a room, from the cleanliness of the beds to the resupply of
items.
Accounting: Accounting is required in every business organisation. Tracking expenditure
and earnings allows you to keep an eye on the money of your organisation and make adjustments
as needed (Taheri, Hosany and Altinay, 2019). The accounting staff in The Merchant Hotel
reports directly to the executive team and provides them with important data and predictions.
They may also provide suggestions and provide assistance to other departments.
Marketing & Sales: It is vital to make promotions and reach more and more customers. It is
seen that in relation to The Merchant Hotel the marketing department advertises and promotes
the brand in such a manner so that the business is able to reach more number of customers. It is
seen that now there is use of digital marketing to enhance the sales of the business.
Kitchen Staff: There is crucial role of kitchen staff so as to provide food for the customers.
It helps to provide all the services to the customers so there no need to go out.
Write about the skills that are required to perform the operational functions
 Communication skills: There is need of effective communication skills as it will help to
build effective relations and retain the guest in the organisation.
 Time management skills: It is important to have effective time management skills in
order to complete the work on time. It helps to satisfy the customers by providing them
the service on time.
 Accuracy: It is also important to have good and effective accuracy to work in accounting
department (Peters and Kallmuenzer, 2018). It is also required to work with care make no
mistakes so that real position of the organisation is known to all the stakeholders
including investors.
 Creative and persuading skills: It is vital to note that there is need of creativity skills as it
helps to attract the customers and persuade them to buy goods and avail services from the
organisation.
 Cooking skills: It is also important that there are good cooking skills and good knowledge
to of food and hygiene to work effectively.

Evaluate the skill gap and its impact on the hospitality organisation.
 There is lack of computer and technical skills that are important to work effectively
(Olya, Bagheri and Tümer, 2019). It reduces the efficiency of employees while working.
 There is need of digital marketing and latest software as that makes the work easier but
there is lack of digital marketing skills that hindrances the growth of the business.
 Along with that there is lack of innovation. It is vital to have innovating skills in each and
every person as it helps to satisfy the customers effectively.
All these skill gaps cause problems and that are lowering down the success rate of the
organisation. It is vital to understand and take actions for improvement so that goals and
objectives are accomplished effectively.
Solutions to address these skills gaps
It is vital to fill the skills gaps that will help The Merchant Hotel to satisfy the demand of
customers effectively. Some of the recommendations are as follows:
 Provide the employees regular training so that they will improve the skills.
 Provide them training related to use of latest software as well as take tests on regular
basis.
 Make the employees aware about latest trends and the way they should deal with the
guests.

CONCLUSION
From the above report it can be analysed that hospitality is a huge industry. In this report
there is discussion related to types of services that are offered in hospitality industry. The
operational and functional department and their interrelationship are also mentioned. There is
need of skills to work effectively in the organisation so the skills and the areas of improvement
are also discussed in the report.

REFERENCES
Books and Journals
Bogicevic, V., Bujisic, M., Cobanoglu, C. and Feinstein, A.H., 2018. Gender and age
preferences of hotel room design. International Journal of Contemporary Hospitality
Management.
Chen, T.J. and Wu, C.M., 2017. Improving the turnover intention of tourist hotel
employees. International Journal of Contemporary Hospitality Management.
Dogonyaro, H., 2021. Employee Retention Strategy in the Hospitality Industry.
Genc, V., Genc, S.G. and Aytekin, E., 2020. The Role of Mergers and Acquisitions as Growth
Strategies in the International Hospitality Industry. In The Routledge Companion To
International Hospitality Management (pp. 219-230). Routledge.
Khan, I. and Rahman, Z., 2017. Development of a scale to measure hotel brand
experiences. International Journal of Contemporary Hospitality Management.
Lee, J., Morrison, A.M. and Jang, S.C.S., A Conceptual Model of Brand Extensions in the
Hospitality Industry.
Ma, S., Gu, H., Wang, Y. and Hampson, D.P., 2017. Opportunities and challenges of value co-
creation: the role of customer involvement in hotel service development. International
Journal of Contemporary Hospitality Management.
Martínez, P. and Nishiyama, N., 2019. Enhancing customer-based brand equity through CSR in
the hospitality sector. International Journal of Hospitality & Tourism
Administration, 20(3), pp.329-353.
MUSYOKI, J., BOR, T. and TANUI, T.A., 2017. EFFECTS OF KNOWLEDGE
MANAGEMENT FACILITATORS AND MECHANISMS ON ORGANIZATIONAL
PERFORMANCE IN THE HOSPITALITY INDUSTRY. CLEAR International Journal
of Research in Commerce & Management, 8(11).
Olya, H.G., Bagheri, P. and Tümer, M., 2019. Decoding behavioural responses of green hotel
guests. International Journal of Contemporary Hospitality Management.
Peters, M. and Kallmuenzer, A., 2018. Entrepreneurial orientation in family firms: The case of
the hospitality industry. Current Issues in Tourism, 21(1), pp.21-40.

Rezapouraghdam, H., Alipour, H. and Arasli, H., 2019. Workplace spirituality and organization
sustainability: a theoretical perspective on hospitality employees’ sustainable
behavior. Environment, Development and Sustainability, 21(4), pp.1583-1601.
Taheri, B., Hosany, S. and Altinay, L., 2019. Consumer engagement in the tourism industry:
new trends and implications for research.
Ukpabi, D., Karjaluoto, H., Olaleye, S.A. and Mogaji, E., 2018. Dual perspectives on the role of
artificially intelligent robotic virtual agents in the tourism, travel and hospitality
industries. In EuroMed Academy of Business Conference Book of Proceedings.
EuroMed Press.