Pearson BTEC Hospitality Industry Analysis: Rosewood Hotels

This report provides a detailed analysis of the contemporary hospitality industry, using Rosewood Hotels and Resorts (RHR) as a case study. It begins with an introduction to the hospitality industry and an overview of RHR, including its history, global operations, and financial performance. The report then explores various aspects of the hospitality business, including different business types within the industry (accommodation, food and beverage, and entertainment), and examines the operational and functional departments within RHR, highlighting their interrelationships. The report further investigates the contribution of the hospitality industry to local, national, and international economies and discusses the concepts of franchising and licensing. It also delves into different operational roles within the industry, the external factors affecting the industry's growth, and the impact of these factors on RHR. A SWOT analysis is presented, followed by a discussion of current trends in the hospitality industry. The report concludes with a summary of key findings and insights. The report is structured to meet the requirements of a BTEC Level 5 HND in Hospitality Management assignment, demonstrating an understanding of the industry's nature, structure, and operations.

THE CONTEMPORARY
HOSPITALITY INDUSTRY

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Hospitality business.....................................................................................................................3
Different type of business in hospitality industry........................................................................3
Operational and functional department in Rosewood Hotels and resorts (RHR) .......................5
Interrelationship between operational and functional department...............................................5
Contribution of Hospitality industry to local, national and international economy....................6
Concept of franchising and licensing...........................................................................................6
LO 2.................................................................................................................................................6
Different operational roles...........................................................................................................6
LO 3.................................................................................................................................................8
External factors that affect hospitality industry...........................................................................8
Impact of external factor on the growth and development of rosewood hotel............................9
SWOT ANALYSIS ..................................................................................................................10
LO 4...............................................................................................................................................10
Current trends in hospitality industry........................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Hospitality industry can be defined as hotels or business that provides space for taking
rest or short term lodging which provides food facility. Hospitality industry refer top as industry
which provide food and accommodation facility to the guest. In the present report Rosewood
hotel and resorts is being taken which was founded in 1979 by Caroline Rose Hunt. Its
headquarter is in Hong Kong and it serves all over the world. The scope with regard to RHR
may cover exploration of the operation at global level along with redesigning its website with an
incorporation of various current strategies, technology and programming. The number of
employees may around 8000. However, it may generate a revenue of $ 1 billion (Rosewood
Hotels and Resorts, 2021). It provides its services of enabling leisure along with an
exposure of luxurious services. Different types of business within hospitality industry,
functional department, relationship of operational and functionals department, external factors,
its impact on the growth and development of the organization are described in the report.
LO1
Hospitality business
It refers to the business that is considering the hospitality sector. It is one of the widest
industry which consist of all the services that is considering with lodging, transportation, food
and drink, event planning, and many more (Al-Ababneh, 2017).
The main aim of the hospitality business is to provide visitors and tourist with all the
amenities including accommodation, food and making organisation of their leisure time.
Size:
It is 4th largest sector of UK with a provider of 3.2 million jobs (UKHospitality, 2020).
Scope:
The scope of hospitality industry consists of various business that is engaged in
providing the services concerning accommodation, entertainment, food and beverages and
various other.
Structure:
The structure of this industry varied from single person organisation to worldwide
corporation. It structures consist of various components including travel services, event, tourist
services, visitor attraction, hostels and many more.
Different type of business in hospitality industry
Accommodation sector:

One of the biggest sector of hospitality industry concerning with providing shelter to visitors and
tourist (Katsoni, 2019).
Type of hotels:
There are different types of hotel. Out of them some are: Star hotels, Commercial hotels,
Apartments, Heritage hotel and Resorts. As per the type of hotel the various services is being
offered. This means that as in star hotel, the luxurious services are being offered to the guest.
These hotels usually charge high rate for their services. It may include Rosewood London.
Likewise, the commercial hotel are used for commercial purposes and may offer their services
accordingly. For example, Inhabit Hotel. However, in case of Resorts the various additional
services in the form of lodges, or separate home facility are also provided. For example, Low
Wood Bay Resorts and Spa. Whereas heritage hotels are famous for their ancientness. This
means these hotels are concerned with providing royal services to their guest. For example
Lumley Castle. Whereas apartment is a kind of hotel which enable its services of staying at low
rate. For example, Grosvenor Suites.
Service offered:
The main services offered by hotels include leisure, spa, 24*7security, restaurants, catering and
many more.
Nature of services:
The nature of services of hotels are variable because it is as per client’s requirement while
some are inseparable. There are usually two types of services concerned with the hotel that
may include tangible and intangible services. While the tangible services may include the
physical or the touchable services like the TV, AC, geysers, washrooms and various other.
However, the intangible services may include convenience of location, amenities, room services
and various other.
Food and beverages (F&B):
It is concerned with that industry that is engaged in processing the raw material and converting
it into food which will be packed and then distributed and delivered.
Types of F&B:
F&B operate in many types out of them majorly includes restaurants, cafes, snack bars, hotels
and catering and various other.
Service offered:
There are basically 5 types of services that may include Table services, Self-service, Single
point service, Assisted services and Specialised services.
Nature of service:

It nature is also variable means dependent upon the choice of guest.
Entertainment sector:
It is that sector of hospitality that is focussed on providing entertainment to clients and guests.
Major sector of hospitality industry.
Types:
Operate in number of types like nightclubs, restaurants, theatres, stadiums, amusement park
and various other.
Service offered:
Fun and entertainment services to guest. For example, kids play area, casino, theatres and
various other.
Type:
It is of inseparable nature means entertainment is attached with its types.
Operational and functional department in Rosewood Hotels and resorts (RHR)
Like other hotels the operational and functional department of RHR consist of:
Operational department:
This department is considering with the operation functions and activities of the RHR. It mainly
consists of:
Front office:
It is like the representative of the RHR. This department work in the form of making registration
of guest, manage reservation and deliver information about rooms, rates and various other
information (Septariani and et.al., 2020).
Housekeeping:
This department make the real operation of the hotel in terms of presenting it to guest in the
most presentable manner. It works in the direction of maintenance of cleanliness, up keeping of
rooms, public areas and various other part of the hotel.
Functional department:
This department is directly related with the actual performance of function of the RHR including
finance, HR and others. It consists of:
HR:
Work in the form of recruiting employees for RHR. Compliance with law and various other
(Boella, 2017). Along with that it also performs an important function in the form of availing the
sufficient number of employees within every department of the hotel so that the performance of
hotel in terms of working would not be affected.

Finance:
Take care of the availability of funds in RHR. Arrange and distribute funds as per requirement.
Along with that it also ensures that every department need with regard to finance must be
fulfilled and managed, so the situation of shortage will never arise. Right from arrangement till
the distribution of finance is to be made by the finance department
Marketing:
Promote RHR, its products and services among customers. It also leads to creation brand
awareness. It would not be wrong to said that the marketing department and its functions would
enable the RHR to create awareness about its hotel among the customers. Likewise, this will
also enable the hotel to win the competitive position in the market by making its brand image
strong.
IT:
Take care about the technology related function including cyber security, maintenance of other.
IT related operation. Along with performance of these function all the back end support and
functions are also being performed by this department. It also manages the online operation of
the hotel.
Interrelationship between operational and functional department
Both the operational and functional department of the RHR are interrelated with each other
as follows:
There is direct relation between front office and HR of RHR because it makes avail
employees for it. Likewise, front office also share relationship and make co-ordination with
finance because on the one hand it takes finance for operation of activities but at the same
side deliver money that is being earned to finance in terms of income. Also front office can’t
work without IT as it helps in its operation related to making of reservation, registration and
various other.
Similarly, housekeeping of RHR also share relationship with HR in terms of making it
aware regarding the requirement of employees. Likewise, it also shares relation with finance
too because it assists them regarding the actual requirement of finance. All the departments
are interrelated because they need each other help to achieve goals and objectives of the
organization. When HR manager needs money to pay day to day expenses or for giving
advertisement for vacant position they interact with finance manager for funds. Other
department also contact with finance department for funds. Housekeeping manager will
communicate with HR department if they need more staff. If employees need training then

also they have to interact with HR department because human resource department is one
of the important area having many responsibilities and they have to manage all the activities
in RHR.
Contribution of Hospitality industry to local, national and international economy
Hospitality industry of UK makes a major contribution towards the economy of UK. As it is
4th biggest sector the UK economy which provides millions of jobs to the local people of the
country (Hemaloshinee and Nomahaza, 2017). Apart from that it is also a major player that
contribute a lot in the national GDP of the country. This includes generating a share of 73bn
for the economy of UK. Likewise, in addition of local economy it is also a major contributor
for the international economy too. This means that at international level also it is one of the
major sector of generation of employment and income. Contribution of hospitality industry to
local economy as it will help in creating more job opportunities such as, tour guides,
planners, tour operators and travel agencies, hotels, resorts. So , this is the biggest
contribution of hospitality industry because it helps in increasing employment, living
standards of people are improved. Contribution of hospitality industry to international
economy is that more revenue can be generated because there are many people who are
visiting new places and they stay in hotels. It increases GDP of the country.
Concept of franchising and licensing
Franchising:
As per this concept franchisor will grant a permission to some other company called
franchisee which will operate the business and avail its services under the brand name of
the franchisor (Varotto, and Silva, 2017). This is one of the best method that will lead to
globalisation of the business of hospitality sector. Through this mode a hotel can make
expansion and internationalisation of its business.
Licensing:
It refers to obtaining permission by which a company can manufacture and sell its one or
more than one product to a specified market area. This is also a method by which hospitality
sector or the hotel can expand its business operation and serve in more than one country.
Licenses help I development of economy as it creates advertisement of domestic product
which lead to increase demand in international market; political and legal motivations.
Licensing is an arrangement in which one firm allows or give permission to another firm to

produce same product but they have to pay specific amount for that. It helps in development
of economy because more people will get employment.
LO 2
Different operational roles
In the hospitality industry there are different job roles such as, F&B manager, restaurant
manger, housekeeping, waiter, receptionist, front office manager and many other. All the people
are different roles and responsibilities that they have to perform for smooth running of the
business.
Food and beverage manager plays a key role in the hospitality industry as they
manage food department, so it is their responsibility to provide good quality of food to the
customers, it will help in increasing productivity of the company and builds good reputation in
the market. Food and beverage manager is specialized in forecasting, planning and controlling
the orders of food and beverages in the hotel properly. In rosewood hotel f&b manager control
all the activities and they make arrangements accordingly. They get guest lists from the front
office department and arrange all the food material according to that (Yu and et.al., 2020).
Receptionist of the hotel is responsible for attending all the calls and respond to
customers. Their responsibility is to provide relevant information to the customers and inform
other departments about the arrival of the guest. In rosewood hotel they handle phone
reservations, attend calls, confirm reservation that were made earlier and give information to
hotel. They give answers to questions asked by customers about their arrival or lodgings,
handle check outs.
Front office manager is responsible for managing all the activities. They ensure that
good services are provided to customers or not. They deal with guest like handling their
complaints and try to solve their issues. It is important to solve the problem of customers
because if they are satisfy then it is beneficial for the company (Xu, 2019).
Housekeeping department is responsible for making beds, cleaning all the rooms
properly before the arrival of guest, replacing dirty linens and towels, removing garbage,
restocking guest rooms like, notepads, drinking glasses. In the rosewood hotel housekeeping
department is responsible for cleaning all the rooms after the check outs of guest, they also
check that rooms are proper or not like, if any repair or maintenance is required. They give
information to other departments if they found any default. They are cleaning rooms properly so
that guest does not find any problem and they like the facilities provided by the hotel.
Skills that are required for performing these roles are :

 For receptionist, good communication skills or ability to convince people, friendly,
customer service, professional, patience, adaptable, overachieving attitude.
 For f&b manager great organizational skills, ability to delegate task, ability to create
reports to give to ownership, great leadership ability.
 For front office manager good leadership ability, team building and supervision, oral and
written communication skills (Thaothampitak and Wongsuwatt, 2019).
 For housekeeping manager bachelor's degree in the hospitality management should be
completed.
Skills shortage refers to when employees are not able to fill or have difficulty in filing
vacancy or some special skills are required within the occupation. Skills shortages in the UK
are, architectural and engineering activities, education, computer programming and
consultancy, financial services, legal and accounting services. Current issues in the hospitality
industry are, changing expectations of customers, rapid change in the technology and regular
innovation, political and security challenges that are faced by the hotel. Skilled labour shortage,
staff turnover and working hours are not regular or fixed.
Skills gaps can be defined as the difference between skills required for a job and the
skills that an employer actually possesses (Sehitoglu, Ross and Köseoglu, 2017). Due to skill
gap[ employees are nit able to perform the complete job because they are not having all the
skills that are required to complete the work. Factors that affect recruitment are, image of the
company, wages that are expected by the employees, environment of the hotel. Skills gaps
have impact on the hospitality industry as in the hotel industry less wages are paid to the
employees because they are not having skills that are required in hotel. As technology is
changing day by day so it is difficult for hotels to make changes. It is difficult to give training to
employees frequently and they are also not having ability to learn things quickly. So, these are
the factors that affect hospitality industry and managers should try to recruit people who are
having essential skills (Abdel-Basset and et.al., 2018).
LO 3
External factors that affect hospitality industry
External factors can be define as the factors that affect working of the hotels. These
factors are uncontrollable and industry has to suffer loss due to these factors such as, political,
economic, environmental, legal and technological.
Political factor : These factor can be define as trade barriers, changes in tax policy,
trade restrictions, political stability, labour law, environmental law etc. All these are included in
political factor, these changes are made by government. Managers of the company has to face

these problems and should find creative solutions so that business can be run smoothly. This
can affect rosewood hotel as if they want to expand their business in other country then they
have to face many problems such as, trade restriction, tax policy (Perera, 2017).
Economic factor : These factors include economic growth, interest rates, inflation,
disposable income of consumers and business. Economic factors can be broken down into
micro economics and macro economics. Micro economics refers to dealing in small issues
whereas macro economics refer to as factors that deal with management of demand in given
economy. These factors can affect rosewood hotel and resort as if the managers want to take
loan then it will be available at high interest rates . Inflation is also a factor that affect industry as
the expenses are more then income (Achinas and et.al., 2019).
Legal factor : These factors include health and safety, equal opportunities, advertising
standards, consumer rights and laws, product labelling, and product safety. It is important that in
every organization laws should be applied so that employees and customers can be satisfied. If
laws are applied then workers are satisfied because they will be treated equally and there will
be no discrimination among employees on the basis of race, gender, caste, income or on other
basis. In rosewood hotel laws are applied and proper rules and regulations are made which is
applicable for all the people working in the organization (Martin-Rios, Pougnet and
Nogareda,2017).
Technological factor : As technology is changing day by day so it is difficult for
managers to manage activities in the company. Nowadays, customers want good quality
products and services at reasonable price. So, it is the responsibility of managers to arrange
training sessions for employees so that they can perform well. In rosewood hotel technological
factor affect as customers want new products and they want that good products should be
provided to satisfy the needs of customers.
Environmental factor : These factors refer to as increasing scarcity of raw materials,
pollution targets, doing business as an ethical company, carbon footprints that are set by
government. This affect rosewood hotel as they have to make products according to the
demand of consumers as resources are scarce so they should not waste material and proper
utilisation should be done (Lo, 2020.).
Impact of external factor on the growth and development of rosewood hotel
External factors refer to the factors that affect working of the company and it is
uncontrollable. Managers have to make plans and policies after analysing the factors and
should take necessary steps so that risk can be minimised and company can generate more
profit. External factors can not be controlled and can affect performance of the organization. As

if there is any change in the tax policy made by the government then managers of rosewood
hotel has to make changes in their policies and plans so , it will affect the working of hotel. If
there is increase in interest rate and if rosewood hotel want to take loan then they have to take
the loan at high interest rate. This affect the working of hotel because now they have to pay
more amount as interest rate is being changed. So, external factors affect the growth and
development of rosewood hotel. Managers of the company should take necessary steps to
solve the issues and find solutions to face the problem. It is the responsibility of HR manager to
make proper plans or strategies so that risk can be reduced and external factors should not
affect growth of company (Konovalova and et.al, 2018).
SWOT ANALYSIS
 Strength - It refers to the positive points of an organization which helps in gaining
competitive advantage in the market. It makes a company different from other
organizations making similar products or providing similar services. As rosewood hotel is
an luxury hotel. It has 15 hotels around the world so it is difficult for other companies to
beat rosewood company. Employees of the hotel are working hard to achieve goals and
objectives of the hotel and to satisfy customers by providing good quality food and
services to guest. They did not give chance to customers to complain regarding food and
beverages, services that are provided, or related to any employee of the company.
 Weakness – It refers to the weak point of the company as compare to competitors. The
company should take necessary steps to improve their performance so that more profit
can be generated and good image can be created in the market. Rosewood hotel has
low brand awareness in competitive luxury hotel industry. The managers of the hotel are
not paying attention to the advertising and due to this reason the brand awareness is low
as compare top other industry. The managers of the hotel should give advertisements so
that people may know about hotel (Goryushkina and et.al., 2019).
 Opportunity – It refers to ways that are available for hotels to expand their business.
Rosewood hotel is having the ability to improve their cross property usage. They should
take steps to improve customer satisfaction, the rosewood can provide random
promotions to the customer.
 Threat – It refers to barriers that company will face during expanding their business or
looking for growth opportunities. As in the market there are many luxury hotels in the
hospitality industry, and traditional or old hotels cannot attract customers. So, managers
of rosewood company make use creative ideas to attract customers (Cerchione and
Bansal, 2020).

LO 4
Current trends in hospitality industry
As technology is changing daily so managers has to make changes in their policies to
compete with competitors. There are new trends that will help the company in growing or
expanding. Current trends in the hospitality industry are, increased emphasis on health and well
being, new roles for staff, destination promotion and many others. These are some trends which
should be applied by which an organization to generate more profit or to build good reputation in
the market. Adopting new an latest technology will help in increasing productivity of the
organization and employees will also feel satisfied. Nowadays, customers want new and
innovative products and services, taste and preference of customers are changing rapidly so
managers have to make changes according to that. It is important to satisfy customers because
they are the king of the market and if they are satisfied then productivity of the company can be
increased (Chigozie, 2017).
Rosewood hotel will give advertisements in newspaper, social networking sites etc, so
that people can know about the company. Now, hotel is not applying any current trend but they
are trying to apply by using techniques and apply new technology. The managers of the
company will take necessary steps for the benefit of the employee as well as organization.
There are ways to evaluate the hotel performance as metrics can be used such as revenue per
available room, the average daily rate, the average occupancy rate, these can be used to
measure or monitor the performance. It is important to measure performance as it will help in
giving ratings. After analysing all the points like, facilities provided, prices of hotels, quality of
food and other points that are essential (Chi, Wen and Ouyang, 2020).

CONCLUSION
From the report it can be concluded that, there are different types of hospitality industry
like, star hotels. Resorts, apartments etc. there are different roles that are performed in hotels
such as, food and beverage manager, receptionist, waiter, housekeeping manager, front office
manager and they are having responsibilities. Skills that are required for different roles are
described. There are various skills that are required by the managers while recruiting
employees. External factors that affect the working of the organization is described in which
PESTLE analysis and SWOT analysis is discussed. imp[act of external factors on the growth an
development of rosewood hotel and resort.

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Online reference
Rosewood Hotels and Resorts., 2021. [Online]. Available through
<https://www.zoominfo.com/c/rosewood-hotels-and-resorts-llc/101220968>
UKHospitality., 2020. [Online]. Available through <
https://www.ukhospitality.org.uk/page/Reports#:~:text=The%20hospitality%20industry
%20is%20the,a%20further%20%C2%A387bn%20indirectly.>
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