Current Scale, Scope and Diversity of Hospitality Industry in the United Kingdom - Assignment Example

The Contemporary Hospitality Industry Scenario Task LO1 1 Current scale, scope and diversity of hospitality industry in Unite Kingdom (UK) Hospitality industry in United Kingdom (UK) consists of varied and broad industry that ranges from worldwide corporation to single- person companies. According to Pearson Schools and Colleges, there are about 80 different jobs in this particular industry (Pearson Schools and Colleges, “The UK hospitality industry”). During 2007-2010, the hospitality industry encountered tough time in their businesses due to the rise and fall in demand due to the global financial crisis. The employment level in this also decreased during this period. Apart from financial crisis, competition for resource and demand has also affected the industry to a great. However, the industry gained back its confidence slowly after 2010 with the rise in demand in the hospitality market in the UK. The hospitality industry in collaboration with the UK government has concentrated in maximizing its contribution towards the economic development of the country. This particular industry generates about 8% of total employment in the country and is regarded as the fifth largest industry in UK (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Hospitality industry through proactive partnership with other industries have looked forward to address the main national objectives such as reduction in budget deficit, creation of new jobs for the upcoming generation, control long term employment and manage communal activities across Britain (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). The hospitality industry in the UK represents about 40,000 businesses where more than 2.4 million employees are employed across the country (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). British Hospitality Association has launched different programs for encouraging pragmatic opportunity by partnering with industry and government. This programs aims at achieving shared goals for the growth of economy of the country. The industry contributes about £ 3.4 billion gross tax revenue to the British economy (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Hospitality industry in the UK generates about £90 billion revenue and contributes an estimated amount of £46 billion in the economy. Apart from generating 2.44 million jobs across the UK, the hospitality economy also generates additional 1.2 million jobs with the help of multiplier effects. It is observed that over 7, 00, 00 multiplier jobs are developed through supply chain purchases with the help of 2/3rd of the food and beverage, business and agricultural sectors (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Figure 1: Distribution of employment in different sectors in UK (Source: British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”) From the above figure it is clear that the hospitality industry in the UK has occupied the fifth position in the economy with respect to generation of employment. Thus, it can be stated that hospitality industry has the ability to provide attractive employment opportunity to its employees. Different sectors in the hospitality industry The hospitality industry does not only comprise restaurants and hotel; in fact it takes into account 12 different sectors that are provided in the figure below: Figure 2: Different sectors in the hospitality industry (Source: British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”) Hotels Hotel sector is regarded as the largest sector within the hospitality industry, which provides wide range of services to the customers from one bedded guest rooms to luxury beds. This sector is sub-divided into the following: Motels or lodges: This establishment are developed near the highways and major roads of the country. Lodges are also convenient for the tourists and businessmen and thus, it is established near airports so that the customer reaches with much ease. The customers also get to stay in low priced rooms and thus accommodation is within budget (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). There are motels in the UK among which Medlar House is preferred for low priced stay whereas The Manor Hotel is ideal for the businessmen who come for business trips more often (Yahoo!7, “Accommodation”). Guest houses: It offers few rooms to the guests, who get the accommodation at a low cost. The guests are served by limited range of catering services (only breakfast) (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Pubs, bars and nightclubs With the change in lifestyle of the population in the UK, the demand for pubs, bars and nightclubs have increased. However, the pubs and bars have suffered from prolonged effect of strict enforcement pertaining to smoking ban and drink-driving laws. For this reason, for years the pubs and bars felt the need to diversify its range of products so as to attract customers. The diversification is sports, wine, cocktail bars and family friendly pubs. The speciality of the sports bar is the large-screen television, where live sports are watched by the sport lovers with their friends and colleagues (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Cocktail bars have sophisticated decoration and a wide range of cocktail menu. Wine bars are continental coffee bars as it offers a wide range of drinks and attract clientele such as single women and many more. Family friendly pubs have a playground where children can play and their parents can enjoy food and drinks inside the pubs. There are many famous hangout pubs, bars and nightclubs for the celebrities, which increases the This sector has high profit margin. There is no labour cost for preparing drinks. When wine is bought in supermarket it costs £3 but when the same is bought in the bar or pub it costs about £10 (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Contract catering During the financial crisis of 2007, the consumers in the UK had to cut down its secondary expenditure, and lunch market was more vulnerable than the dinner occasions. In such a situation, the caterers had to balance contrasting demands of the customer and at the same time reduce the cost and minimize risk (Mintel Group Ltd., 2012). The contact catering industry had suffered from tough market conditions due to the weak the economy of the UK. Gradually, with the improvement in demand for catering services during occasions, the catering industry has encountered new heights of excellence. Restaurants Restaurant sector in the UK have offered wide range of food and services to the customers. The restaurant sector can be sub-divided into takeaways, popular catering, fast-food outlets, fine dining and mainstream catering. The takeaways provide quick services to the customers where as the fast food outlets do the same but in a specialised environment. Fine dining provides high quality of skilled services. Popular catering focuses on delivering food, coffee and snacks (found in retail shops) (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Task 2 LO1 1.2 Organisational structure Organisation structure is defined as the hierarchical arrangement of communications, lines of authority, duties and rights of a company. Organizational structure of a company highlights the power, roles and responsibilities of the individual that are assigned and coordinated to them. It also identifies the flow of information between different levels of management in a company. The structure is dependent on strategies and objectives of the company. In a hospitality industry, the hotels, restaurants, bars, pubs and nightclubs are either owned by single owner or partners. There are several chains of restaurants that have served the restaurant industry for quite a long time. Thus, the ownership depends on the size of the hotels or restaurants or any other hospitality services. In hospitality industry, the power or authority is generally decentralized as the works are divided into a number of individuals working for an entity. For example, in a hotel, the managers assign different role to their subordinates, as a result, the responsibilities are delegated, which helps it to operate successfully (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). The organisation structure for different companies is different: flat or tall. Tall organisational structure is found in hotels, which are very large in size and have different levels of management from managers to workers. However, the flat structure does not have such levels of management. For example, if flat organisational structure is considered then the owner can be the manager and the chef. The management structure of such a restaurant is divided into two parts such as back and front house. The front house operations include departments such as beverage and food, conference, accommodation and banqueting. The back house operations include food preparation areas, finance and areas that are not seen by guests (Pathfinder International, “Organisational Structure”). There are different types of ownership structure in the accommodation sector. Among them two are famous such as franchise and ownership. Sole ownership refers to the opening of hotels or restaurants by the owner without any financial help except loans. The main benefit of this ownership structure is that they have sole right on profit and the main disadvantage is that the owner has to bear the loss of the business. Hotels can also be franchised where the franchise can be the part of a renowned chain of hotels. The main advantage of this type of ownership is that the franchises do not have to spend on marketing and promotional activities. The above mentioned ownership styles are popular in hotel industry. They offer wide range of standard services so as to lure the customers back again (British Hospitality Association, “Creating Jobs in Britain – A Hospitality Economy Proposition”). Task 3 LO1 1.3 Role of hospitality related organisations and professional bodies The role played by the different hospitality related organisations and professional bodies are elaborated below. British Hospitality Association (BHA): BHA is referred as the leading member organisation in the tourism and hospitality industry.  The main role of BHA is to promote interests of brands, operators and owners across different hospitality sectors such as restaurants, hotels, serviced apartments and food service clubs. It helps the hospitality sectors to shape their future in the competitive market and contribute to the economic growth as well (British Hospitality Association, “About”). Institute of Hospitality: It is a “professional body for individual managers and aspiring managers working and studying in hospitality, leisure and tourism industry” (Institute of Hospitality, “Welcome to Institute of Hospitality”). The institute helps the professional members to build their career in the hospitality sector and make them efficient for the competitive world. British Institute of Innkeeping: The institute helps individuals to develop skills for a particular industry. The main goal of the institute is to help the workers in pubs and bars to start their own business in that industry (Hospitality Guild, “British Institute of Innkeeping”). People 1st: It is a leading workforce and skills development charity established for the employers in tourism, hospitality, travel, and passenger transport and retail industries. It basically focuses on transforming skills in sectors through development of an effective recruitment, talent management solutions and training (People 1st, “About us”). Scenario 2 Task 4 LO2 2.1 Staffing requirements in different hospitality industries The staff requirement for hotel industry is elaborated hence forth. Core waiting staff: This group of staffs forms the main backbone of every hotel; they are trained in such a way that they have the ability to manage any problem arising in the hotels and restaurants. They are well equipped with back of house operation, cloakroom and bartending. The core waiting staffs also include functional specialists, which are required when there are at technical faults. There are also several full and part time workers to meet the needs of the customers and guests. Managers: They are experienced employees and are capable of managing any event. They are hired to manage the whole operation of the hotel and restaurants starting from hospitality staffs services to financial department. Supervisors: The supervisors plays an important role in the successful operation of a hotel. They hire the right waiting staffs and train them to do their work efficiently (Measuredevents, “Hospitality Staffing, Event Staffing and Waiting Staff in London”). The staff requirement of pubs and bars are elaborated henceforth. The pubs and bars require managers and staffs such as waiters, bartenders and chefs to run the business (Jobofer.org, “Hospitality Staffing Solutions”). Task 5 LO2 2.2 Roles, responsibilities and qualification requirements for hospitality staffs The roles and responsibilities of the staffs in the hotel industry are provided henceforth. The core waiting staffs in hotels include waiters or waitresses, housekeeping, dishwashers, ground keepers, maintenance, room attendants, host or hostess, food and beverage, bellhop, doorman, laundry and concierge. All of them play an important role in running the hotel business successfully. They have the responsibility to take care of the needs of guests and fulfil their demands at any moment of time. The mangers have the responsibility to supervise the actions of the core waiting staffs and ensure whether the guests are encountering any problem. However, in pubs and clubs the managers are responsible for supervising the activities of bar tenders and waiters and also ensure that the guests are comfortable and are receiving their needful (Measuredevents, “Hospitality Staffing, Event Staffing and Waiting Staff in London”; Jobofer.org, “Hospitality Staffing Solutions”). Scenario 3 Task 6 LO3 3.1 Operational, managerial and legislative issues The hospitality industry is encountering operational and managerial issue in the contemporary world of management. The operating issues includes problems relating to food and safety, employees expectations, socio-cultural issues, flexible working hours, operating, procedures, retention and e-commerce. The hospitality industry has the responsibility to ensure the customers or guests that they are providing right quality food which is safe to consume. Employee expectation and retention is an important issue in present hospitality industry as the employees are leaving jobs due to work pressure and low pay (Numphud, “Industry Insight: the Hospitality Industry – the Answer to Unemployment?”). Thus, the industry should ensure that this issue is mitigated. Managerial issue relates to the identification of the key players in industry, marketing considerations, education, international aspects, media issues and training providers. Task 7 LO3 3.2 Current image of hospitality industry With the increase in international travel worldwide, the travel and tourism industry have encountered huge growth. At the same time, the safety and security concern has also increased due to several terrorist activities. Thus, increased security measures are adopted by the UK government so as to ensure safe journey and stay of the guests (Numphud, “Industry Insight: The Hospitality Industry – The Answer to Unemployment?”). Contingency plans are also developed by the government so that they can take immediate actions after any terrorist attack or natural disaster. The hospitality industry gives an opportunity to understand different cultures and appreciate them by interacting with tourists. In UK, the hospitality industry has encountered huge growth as they appreciate each and every culture and make a very good relationship with the different races and religions. Diversity in the hospitality industry in UK has enhanced its vision by providing employment opportunities to different nationalities in the world market. However, there are issues in this industry pertaining to unemployment. According to the report of People 1st State of the Nation 2013, hospitality industry should recruit 6, 60, 200 employees by 2020. It is observed that unemployment level in UK have risen to about 2.52 million and the industry have thousands of vacancies (Numphud, “Industry Insight: The Hospitality Industry – The Answer to Unemployment?”). The perception of individuals about this industry is to be improved so that they can apply for jobs in this sector. This will help in growing the business through education and awareness. Scenario 4 Task 8 LO4 4.1 Potential trends and developments in hospitality industry The potential future trends and development in this industry are elaborated henceforth. The industry should prefer eco-lodging for supporting green environment in UK. Mega-hotels should be established in order to offer multi-purpose facilities to the guests such as shops, casino, theatres and theme parks (Economic and Social Research Council, “UK hotel industry alive with innovation”). The mega hotels should also incorporate banquet halls that can accommodate thousand guests. In UK, there are few boutique hotels and thus, efforts are required to build more such hotels. The security system of the hotels and restaurants should be more efficient so that the guests do not have to face dangerous situation. One of the most important issues that are encountered by the UK hospitality industry is increasing rate of employee turnover. Thus, the industry should focus on increasing the salaries of employees so that they can retain the efficient employees (Graduate Prospects Ltd, “Hospitality industry: An expert view”). More emphasis should be given on technological and internet development so as to enhance the quality of services. The physical and virtual social networks should be implemented for the distribution channels. Task 9 LO4 4.2 Impact analysis for predicted trends and developments Security system in hospitality industry plays an important role for securing the guests and customers from dangerous incidents. With the increase in terrorist activities, the UK travel and tourism industry is affected to a great extent. The hotels and restaurants should take strict action in increasing security solutions so as to ensure that the guests are safe in the hotels. The government should also protect the tourists in the airports and during sightseeing in international grounds and make them feel comfortable in an unknown place. The security system at the hotels, restaurants, pubs, night clubs and bars should be efficient enough to protect the visitors of guests from any violence. The security system will ensure safety of the security of the guests and this will make them confident to visit again in future and even recommend to friends and relatives (Jamieson, “UK Riots: Affects on the UK Hospitality Industry”). In order to avoid high rate of turnover of employees, the hospitality industry in UK should ensure that the employees are paid properly. This will increase productivity of the industry and help in contributing positively towards the development of the economic. Reference List British Hospitality Association., 2010. Creating Jobs in Britain – A Hospitality Economy Proposition. < https://www.instituteofhospitality.org/news/November_Issue/bha_report_creating_jobs_for_britain > British Hospitality Association., 2014. About. < http://www.bha.org.uk/about/ > Economic and Social Research Council., 2012. UK hotel industry alive with innovation. < http://www.esrc.ac.uk/news-and-events/press-releases/22337/UK_hotel_industry_alive_with_innovation.aspx > Graduate Prospects Ltd., 2014. Hospitality industry: An expert view. < http://www.prospects.ac.uk/features_hospitality_industry_an_expert_view.htm > Hospitality Guild., 2014. British Institute of Innkeeping. < http://www.hospitalityguild.co.uk/About/Partners/British-Institute-of-Innkeeping > Institute of Hospitality., 2011. Welcome to the Institute of Hospitality. < https://www.instituteofhospitality.org/ > Jamieson, L., 2011. UK Riots: Affects on the UK Hospitality Industry. < http://www.hotel-industry.co.uk/2011/08/uk-riots-hospitality/ > Jobofer.org., 2014. Hospitality Staffing Solutions. < http://www.jobofer.org/hospitality/ > Measuredevents., 2014. Hospitality Staffing, Event Staffing and Waiting Staff in London. < http://www.measuredevents.com/hospitality_staff.php > Mintel Group Ltd., 2012. Contract Catering - UK - October 2012. < http://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CDAQFjAB&url=http%3A%2F%2Freports.mintel.com%2Fsinatra%2Foxygen%2Fbrochure%2Fid%3D590391&ei=RU4dVLvCD4meugS-hILwAg&usg=AFQjCNGP1cbjSdqwFMpx-T-eZScLp_pEMQ&sig2=5uCesESCOsEmqKYYQZts_w&bvm=bv.75775273,d.c2E > Numphud, S., 2013. Industry Insight: The Hospitality Industry – The Answer to Unemployment? < http://www.hotel-magazine.co.uk/industry-insight-the-hospitality-industry-the-answer-to-unemployment > Pathfinder International., no date. Organisational Structure. < http://www.pathfinder.org/publications-tools/pdfs/Strengthening-You-Organization-A-Series-of-Modules-and-Reference-Materials-for-NGO-and-CBO-Managers-and-Policy-Makers-Organizational-Structure.pdf > Pearson Schools and Colleges., no date. The UK hospitality industry. < https://www.pearsonschoolsandfecolleges.co.uk/Secondary/Vocational/HospitalityandCatering/WJECGCSEHospitalityandCatering/Samples/Samplepages/WJECGCSEHospitalitySamplePages.pdf > People 1st., 2014. About us. < http://www.people1st.co.uk/About-us > Yahoo!7., 2013. Accommodation. < https://au.totaltravel.yahoo.com/directory/accommodation/united-kingdom/?filter=motels > Read More