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Structure of the Hospitality Industry - Assignment Example

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The hospitality industry has grown over years internationally in the scale of operations and diversity.  Intense globalization drive pursued by various countries of the world has changed the scope of the hospitality industry. The industry has expanded into a variety of other related services that include event management, leisure…
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Structure of the Hospitality Industry
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Download file to see previous pages Therefore, the responsibilities relating to the functional areas such as marketing, customer relationship management, HRD and finance in an undertaking need to be reoriented in tune with the global changes in the industry.
The organizational structure of different organizations in the hospitality industry is based on the facilities available. However, the structure also varies with the star categorization of the luxury hotels, type of ownership like a partnership or limited company, the number of hotels in the group and affiliation with the international hotel chains. World Hotel Rating (WHR) project labels hotels by features such as family or child-friendly. Some hotels are operated on franchisee basis. The internal control systems in the case of firms with one or two hotels under the same management will be very simple. However, in the case of hotel chains or hotel groups with international operations, the systems would be very elaborate with risk management controls in place. Many small-sized organizations prefer Real Estate Investment Trusts (REIT) status with a view to avail tax benefits.
As against flat structure noticed in small organizations, the chain of command, the delegation of responsibilities and authorities, hierarchical levels and managerial decision-making process in the case of hotel chains or groups consisting of several business activities considerably vary depending upon the size and diversity. The management structure is also influenced by the environmental factors relating to the businesses, categories of services offered and technology used. The industry covers a wide range of services such as tourism, theme parks, event management and tourism related services apart from lodging and catering. The organizational structure of a company which provides various services has several divisions such as Hotel, Tourism, Theme Parks and Travel.  There are various departments within each division, for example, in the case of Hotel Division the departments include Housekeeping, Health &Sports, Restaurant, Room Service, Event Management and Front Office.  The departments such as Accounting, Advertisement & Media, Marketing, and HRD are common to all the divisions.   ...Download file to see next pagesRead More
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