The Contemporary Hospitality Industry - Assignment Example

The Contemporary Hospitality Industry Table of Contents Table of Contents 2 Introduction 3 0Current Structure of Hospitality Industry 4 1 Analysethe Current Scale, Scope and Diversity of the Hospitality Industry 4 1.2 Discuss the Organisational Structure of Different Hospitality Organisations 5 1.2.1 Private Organisation 5 1.2.2 Public or Government Organisation 6 1.2.3 Voluntary and Charitable Organisations 6 1.2.4 Co-operative Body 6 1.3 Assess the Role of Hospitality Related Organisations and Professional Bodies 7 2.0Understand Staffing In the Hospitality Industry 8 2.1 Assess the Staffing Requirements of Different Hospitality Industries 8 2.2 Discuss the Roles, Responsibilities and Qualification Requirements for Hospitality Staff 9 3.0 Recent Developments Affecting the Hospitality Industry 10 3.1 Analyse Operational, Managerial and Legislative Issues Resulting from Recent Developments Affecting the hospitality Industry 11 3.2 Discuss the Current Image of the Hospitality Industry 11 4.0 Identify Potential Trends and developments in the Hospitality Industry 13 4.1Present Justified Predictions for Potential Trends and Developments in Hospitality Industry 13 4.2 Produce an Impact Analysis for the Predicted Trends and Developments 14 Conclusion 15 References 17 Introduction During the 21st century hospitality industry has been one of the fastest growing sectors in global market place. After the Second World War hospitality industry has become more professional and expanded with its adequate services around the entire world. Impact of globalisation can be highly observed in case of hospitality industry. With the effect of globalisation, the concept of hospitality industry has been extended from its traditional approaches towards becoming more contemporary. Thus, in the modern era pubs, bars and nightclubs are considered as a hospitality sector along with restaurants and membership clubs (Slattery, 2002). In order to establish a hospitality business model, it will be required to gather more knowledge about the hospitality industry and hospitality management. Besides, in order to define the term hospitality management, it can be asserted that hospitality management is a practice of hospitality activities, which can be performed by two distinct activities such as offering food and offering shelter to individuals and group people (Slattery, 2002). In this report, the objective is to understand the current structure of hospitality industry. Apart from this, the report will be emphasising towards the understanding of staffing system in case of hospitality industry. Moreover, the report will also identify the recent developments of the industry. Finally, the report will emphasise towards the identification of potential trends and developments in the hospitality industry. 1.0 Current Structure of Hospitality Industry Hospitality is one of the growing industries in the UK market. In terms of business activities, the industry has occupied considerable slice of market in the UK. The industry has been identified as a one of the most trustworthy industry in terms of its employment availability. Essentially, the industry has been established through the assistance of twelve different sectors. Figure 1: Current Structure of Hospitality Industry in UK 1.1 Analyse the Current Scale, Scope and Diversity of the Hospitality Industry With the effect of globalisation, the hospitality industry has extended its growth and sustainability in global market. The industry has the potential of attracting all three economic classes in an economy. In context of the UK market, upper class economy is very much familiar with service of major casinos or restaurants. Similarly, the industry also meets the expectation of middle economic class consumers through its luxury hotel services. At the same time, the hospital industry also offers its hotel, travel, and tourism services to the lower economic class people. Thus, it can be evidently asserted that the hospitality industry has wide range of scope in the global market place (Slattery, 2002). Simultaneously, the hospitality industry has a massive diversifying opportunity in global market place. It has been revealed that hotels, restaurants, night-club, cinemas, and theatres among others are considered as a part of hospitality industry. Whereas, airport services, rail stations, cruise, train and aeroplane services are also included under hospitality industry. On the other hand, health care organisations, education institute, military services and custodial and retailer services are also considered as a part of hospitality industry. Thus, it can be apparently observed that the hospitality industry has a wide range of scope and diversifying opportunity in the global market place (Slattery, 2002). 1.2 Discuss the Organisational Structure of Different Hospitality Organisations The hospitality industry has a unique feature in terms of its own operating structure. In accordance with Gujar (2012), hospitality industry can be segmented into four distinct business models in terms of its structure in the UK market place. In this regard, it has been identified that hospitality organisations can be private organisation, public organisation, charitable organisation or co-operative body (Gujar, 2012). 1.2.1 Private Organisation Private sector organisations are offering hospitality survives with the aim of earning profit and desired level of Return on Investment (ROI). In the context of the UK market, it has been observed that several business entities are operating its business activities in hospitality segment as a private organisation where the primary aim of these types of organisations is to maximize profitability and ensure sustainability (Gujar, 2012). The different types of organisations included under private sector those are 1) Public limited company, 2) Sole trader and partnership firm and 3) Private limited company (Gujar, 2012). 1.2.2 Public or Government Organisation Public sector refers to government-owned organizations or government-provided services in general. Notably, it has been observed that the governmental hospitality organisations aim at improving the quality of hospitality services in UK market place. For an instance, International Affairs, Legal Counsel and Prosecution, Legislative Bodies, Police Protection, Defence force and Fire Protection are few UK based governmental organisations, offering hospitality services (Gujar, 2012). 1.2.3 Voluntary and Charitable Organisations Similarly, it has been observed that charitable organisations are also engaged in offering voluntary services, which can be also considered as a hospitality service. According to the study, it has been identified that in the UK market place several organisations perform voluntary services in order to fulfil the requirement of needy and under privileged individuals through providing charitable services (Paxton & et. al., 2005). For instance, Action on Disability and Development, AIDS-Free World and United Kingdom Disabled People’s Council among others can be identified as the key examples of non-governmental or charitable Organisations, which are offering voluntary hospitality services to the UK market place (Gujar, 2012). 1.2.4 Co-operative Body Co-operative organisations, in general, refers to those organisations working on the principle of mutual ownership, wherein its members might be the employees or the customers who may take active part in the decision-making as well as share profits earned by the organisation as its stakeholders. The purpose of this type of organisations remains centred on the values of corporate social responsibility rather than on the profit led motive. To be precise, this type of organisations offers its hospitality services as a social responsibility through self-help (Gujar, 2012). 1.3 Assess the Role of Hospitality Related Organisations and Professional Bodies From the above study, it has been already identified that the hospitality industry is the coordination of various different sectors and all of these sectors have their own key responsibilities for maintaining its profitability and sustainability. Thus, with aim of accomplishing the objective, organisations from different sectors usually emphasise towards the human relations along with quality products and services (Gujar, 2012). Thus, in order to highlight the role of hospitality industry, it can be evidently asserted that hospitality related organisations and professional bodies should have maintained their quality of product and services in order to ensure long-term sustainability. Apart from this, hospitality related organisations and professional bodies should have focus on the human aspect of the business, which will assist hospitality service providers with a better chance of understanding the consumers’ expectation. Moreover, the hospitality related organisations should emphasise towards customers’ satisfaction aspects (Gujar, 2012). 2.0 Understand Staffing In the Hospitality Industry Staffing is quite essential factor for any business organisation. Similarly, in case hospitality industry without staffing business organisations will not be able to satisfy consumers need adequately. 2.1 Assess the Staffing Requirements of Different Hospitality Industries In order to identify the staffing requirement in case of hospitality industry, it has been identified that business organisations will not be able fulfil the high expectation of the consumers without proper staffing facility. In order to assess the staffing requirement in the hospitality industry, hotel and restaurant sector has been chosen (Mackenzie, & Chan, 2009). The demonstration of staffing requirement in the hospital sector is illustrated below: Figure 2: Major Department of a Five Star Hotel Source: (Mackenzie, & Chan, 2009) From the above figure, it has been perceived that in case of a hotel and restaurant sector certain departments such as accounts, sales and marketing, food and beverage, human resource and engineering among others are highly essential to provide an exceptional services to the consumers. Apart from this, in order to supervise and monitor the entire sector, middle level management is also highly needed. Moreover, to make strategic planning and for making strategic decisions high level management such as managing directors and general managers are also highly essential for a hotel and restaurant sector of the hospitality industry. Thus, after evaluating this context, it can be apparently asserted that the hospitality industry is highly indispensible on people from staffing aspects (Mackenzie, & Chan, 2009). 2.2 Discuss the Roles, Responsibilities and Qualification Requirements for Hospitality Staff In order to highlight the role and responsibility of the hospitality staff, it can be asserted that different hierarchy have different set of responsibility. Similarly, it can be also affirmed that requirement of qualification also varies from one hierarchy to another in case of hospitality industry (Mackenzie, & Chan, 2009). Especially, it has been revealed that in case of hospitality industry related organisation, essentiality of educational qualification is very high for the top level management. Top level management usually make strategic planning and strategic decisions in order to ensure organisational profitability. In this regards, higher education helps individuals to choose decision from the theoretical knowledge. Simultaneously, it can be asserted that in order to supervise and monitor organisational performance adequately, middle level management also need a certain level of knowledge and education in their professional life. Apart from this, education also ensure operational and commination skills, which is highly essential within the hospitality sector. Same concept has been also applicable for the people of lower level management. In this regards, in order to perform specific role and responsibility in hospitality based organisation, an individual need at least basic level educational knowledge (Mackenzie, & Chan, 2009). Figure 3: Organisational Hierarchy 3.0 Recent Developments Affecting the Hospitality Industry In order to highlight the recent development, which has affected the performance of the hospitality industry; it has been identified that employment, human resources development, and industrial relations are the prior issues. As per the observation, it has been revealed that these are the factors, which have initiated several challenges specifically in the hotels, travelling and tourism sector in the UK. As an effect, negative impact has been observed on the GDP growth rate of the UK (International Labour Organization, 2010). 3.1 Analyse Operational, Managerial and Legislative Issues Resulting from Recent Developments Affecting the hospitality Industry With the effect of globalisation, several changes have been observed in case of hospitality industry. Accordingly development of fast food, standardized chain hotels, and air transportation services are the examples of modern trend of hospitality services. In this regards, the UK market has been recognised as a one of the fastest growing market around the entire world. Thus, it can be asserted that the UK has witnessed the exceptional services within the nation’s hospitality industry. On the contrary, it has been also perceived that the development has affected the economy of the UK market place in terms of employment, human resources development and industrial relations (International Labour Organization, 2010). In accordance with International Labour Organization (2010), organisations in the UK market have faced several challenges in terms of their workforce, which has affected the performance of several hospitality sectors. Apart from this, several hospitality sectors have faced rigid legislative norms, which have also affected the economic growth aspects of hospitality industry especially within the nation. Moreover, during the past decade, the range of hospitality products and services has been increased, which has initiated high financial and operational competitiveness within the industry. As an effect, the environment of the hospitality industry in UK market has become highly competitive (International Labour Organization, 2010). 3.2 Discuss the Current Image of the Hospitality Industry In order to identify the current scenario of hospitality industry, it has been identified that the industry has been one of the most consistent business segments, which has maintained 3.3% average annual growth rate in terms of GDP during the years 2000-2010 in European market place. At the same time, hospitality industry has been able to maintain an average annual employment growth rate of 2.9% during the years 2000-2010 in Europe. Simultaneously, the hospitality industry has contributed 3.6% growth in UK’s GDP. Moreover, the industry has also contributed 9.4% growth towards the employment of the UK. Furthermore, it has been also witnessed that the industry has extended its wide range of operations in UK market, which has helped the UK consumers to experience exceptional services from the industry in terms of food and beverages among others (Earnst and Young, 2013). Apart from this, it has been also identified that the hospitality industry has been contributing massive amount of revenue to the UK government in terms of direct taxation, value added tax and excise duty amount among others. According to the Earnest and Young (2013), the UK hospitality industry has contributed €61.6bn to the GDP during the year 2010, which signifies that the UK government is partially relied on the hospitality industry in order to collect more taxes and duties (Earnst and Young, 2013). On the other hand, during the last decade it has been identified that the industry has ensured high amount of employment opportunity in the UK market place. According to the report of Earnst and Young (2013), the hospitality industry has generated approximately 1.8 million direct employments in the UK market during the year 2010 and as per the total calculation it has been identified that more than 2.2 million employments has been generated in the year of 2010. Thus, it can be evidently asserted that the industry has been offering significant contribution towards the economy and society for more than decade (Earnst and Young, 2013). 4.0 Identify Potential Trends and developments in the Hospitality Industry During the early 21st century, it has been identified that the traditional concepts of hospitality has been changed. Moreover, it has been recognised that modern hospitality related organisations are specifically emphasise towards the optimising operational efficiency. In order to meet that objective, hospitality based organisations are identically concentrating on three essential factors such as energy, water and waste (Goldstein, and Primlani, 2012). 4.1Present Justified Predictions for Potential Trends and Developments in Hospitality Industry In order to identify the current development of the hospitality industry, it has been perceived that with effect of the globalisation hospitality industry has extended its operation in global market place. Apart from this, few other factors such as cost saving measures, regulatory affairs, branding and promotion among others has enhanced the potentiality of hospitality industry in global market place (Goldstein, and Primlani, 2012). In context of UK market, it can be predicted that modern organisations will specifically emphasise towards cost cutting approach in order to enhance profitability and sustainability. Thus, in order to implement this approach hospitality related organisations of UK will need to focus on the energy efficiency and conservation measures in order to accomplish high level profitability. Accordingly, it has been identified that organisations have cut down the cost of its product and services through savings the consumption of water and on the hand, tried to reduce waste by recycling items. Thus, in coming future hospitality industry will need to emphasise towards the waste management and cost saving approaches in order to enhance the potentiality and ensure development (Goldstein, and Primlani, 2012). Simultaneously, hospitality organisations can establish a positive corporate culture and healthy employee relationship, which will help hospitality organisations to ensure and establish a better relation with the consumers. Moreover, in order to ensure potentiality and long term sustainability, hospitality related organisations would need to focus on the platform of brand management (Goldstein, and Primlani, 2012). 4.2 Produce an Impact Analysis for the Predicted Trends and Developments During the analysis of hospitality industry, this report highlighted the potential trends and developments of the hospitality industry. In order to identify the impact of those predicted trend it can be evidently asserted that through cost saving approaches hospitality industry can reduce the cost of the product and/ or services, which will help those hospitality related business firms to attract more numbers of consumers towards the organisation. Apart from this, through focusing towards the waste management organisations can also cut down their cost of the product and it will also help to increase profitability (Goldstein, and Primlani, 2012). On the other hand, through adopting brand management strategy organisations can ensure its profitability. Over the last decade, it has been observed that most of the global hospitality sectors are emphasising towards the brand management strategy in order to enhance the performance of the effectiveness of the organisation. Besides, brand management strategy has especially helped to grow field of green meetings and conventions for the hospitality sectors (Goldstein, and Primlani, 2012). Simultaneously, maintaining positive corporate culture and healthy employee relationship will motivate employees of the hospitality organisations to perform in a better way in order to satisfy consumers’ needs (Goldstein, and Primlani, 2012). Conclusion From the foregoing discussion, it has been identified that hospitality industry is one of the growing industry in the UK market. Moreover, it has been revealed that several hospitality sectors such as hotel, restaurant, pub, night clubs, travelling and tourism services are considered make up hospitality industry. This report further highlighted the role of hospitality related organisations. Apart from this, the report has recognised the staffing requirement in hospitality industry. Moreover, the roles and responsibilities of the hospitality staff and the requirement of qualification for being a hospitality staff are also described. Apart from this, the report has specifically analysed operational, managerial, and legislative issues of the UK market, which has affected the developments of the hospitality industry. Furthermore, the report has also identified the current scenario of hospitality industry in context the UK market place. Finally, the potential trends and opportunities of the hospitality industry have been anticipated and highlighted. In this regards, it has been observed that hospitality sectors can enhance their level of efficiency through adopting cost cutting approach and implementing recycling strategy will help in case of waste management. Moreover, through maintaining positive corporate culture and healthy employee relationship hospitality sectors can ensure its long term sustainability in the global market. Conclusively, it can be apparently asserted that hospitality related organisations could enhance their efficiency and effectiveness by maintaining its quality of products and services. Furthermore the adherence to this approach will enhance the contribution of hospitality industry towards the economy of a country. References Earnst and Young, 2013. The Hospitality Sector in Europe. The Brewers of Europe, pp. 1-298. Goldstein, K. A. and Primlani, R. V., 2012. Current Trends and Opportunities in Hotel Sustainability. HVS Global Hospitality Services, pp. 1-9. Gujar, P., 2012. Organizational Structure in the Hospitality Industry: A Comparative Analysis of Hotel Real Estate Investment Trusts (REITs) and Hotel C-Corporations. Massachusetts Institute of Technology, pp. 1-130. International Labour Organization, 2010. Developments and Challenges in the Hospitality and Tourism Sector. Sectoral Activities Programme, pp.1-115. Mackenzie, M. & Chan, B., 2009. Introduction to Hospitality. Tourism and Hospitality Studies, pp. 1-258. Paxton, W. & et. al., 2005. The Voluntary Sector Delivering Public Services. Joseph Rowntree Foundation. Slattery, P., 2002. Finding the Hospitality Industry. Journal of Hospitality, Leisure, Sport and Tourism Education, Vol. 1, Iss. 1, pp. 19-28. Read More