The growth of hospitality industry in UK is steady and the number of travellers is increasing every year. This case study has analyzed the scope, growth and diversity of the industry. This industry has relation with various other industries, which creates a diverse situation. The hierarchy of the organization of hospitality industry is discussed in this case study. There are many hospitality related organizations present in UK to help hospitality industry to grow, have discussed about them in this case study. The potential future trends of hospitality industry in UK, discussed here to analyze the impact.
Hospitality industry has presence in broad category of other businesses like casinos, hotel, resorts, airlines and tourisms. The focus of this industry is to take care of the customer. Customers are the heart of the heart of the business. Hospitality manager greet the guests, try to understand them, anticipate their needs to provide them best in class service. This report will help to analyze the scope of hospitality industry will have in future and the current scenario of the business model and future preferences of this business. In this concerned report, the information about the organizational structure of this business model and discuss the scope of improvement. This report will also discuss the role, responsibilities of a person-holding diploma in HND Diploma in Business Hospitality. Throughout the reported role of hospitality in the various industries will be the topic of discussion. The cost and requirement of staffing are other areas where this report will provide some light. The hospitality industry has relation with many industries; due to this reason, this report will also focus on the future prospects of this industry means its future trends, the scope of this business, growth, the requirement of staff and many more.
1.1 & 3.2 Analyse scope, current scale and diversity of Hospitality Industry
Hospitality industry has presence in broad category of other businesses due to this reason the scale of this industry is large. Hospitality industry can provide jobs in the restaurant sector, which belongs to one of the largest sector followed by bars, pubs, airlines, hotels, casinos and clubs. This industry is one of the diverse industries is among others due to the involvement of other industries and variety of job roles. In case of hotel sector, the growth of food service sector is fairly steady and healthy. According to Boella, (2013) hospitality industry belongs to service industry where the consumer is at the top. This industry can create its present if the main industry has some focus on customer satisfaction and meeting the needs leisurely than basic ones.
Hospitality industry can be part of hospitality services, casinos, nightclubs, bars, pubs, contract catering, dedicated membership clubs, hostels of employees, holiday parks, visitors attractions, events and many more. The meaning of diverse industry is where regional economics and globalization create a growth opportunity for an employee, high paying jobs. Globalization has enhanced the diversity of this industry due to cultural exchange. Due to this reason hospitality, industry is the fourth biggest employer in UK (Bha.org.uk, 2017). Globalization has also enhanced the scope of jobs in this industry. Benefits of this diversity are exposure to exchange different cultures; guests increase the opportunities to create tourism industry.
There was more than 10 million tourists visited London in 2015, which is 20% increase in number in the span of just five years (Theguardian.com, 2016). Money spent by these tourists also has increased significantly. According to International, newspaper tourists have spent 35% more than 2010 (Theguardian.com, 2016). This data shows the current scale of the industry in London, which is enormous and steadily increasing. The number of hotels in 2017 has increased along with clubs, pubs, and restaurant. The recent advancement in Information technology has helped to increase revenue of that industry where hospitality industry is also involved. According to these reports, this is clear that the scale of the hospitality industry is not only large but also it is also growing at steady rate.
The scope of an industry refers to the range of the opportunities to create jobs. Hospitality industry has potential to create large number of jobs. Banga et al. (2013) argued that hospitality industry plays a great part in terms of providing employment. In terms of employment, the restaurant is one of the sectors in the UK followed by other sectors. The steady growth of hotel sector increases the number of people employed by this industry.
1.2 Discussing organizational structure in hospitality business
The organizational structure of Hotels involves General Manager on the top of the organizational hierarchy who supervises the whole business starting from accounting to hospitality. According to Boella, (2013) General manager is the ultimate decision-maker in the hotel. After general manager, there is Executive Secretary, responsible for managing the organization and providing insight of the business about hospitality, customer requirements, the requirement of new staff and many more. Director of marketing and sales, chief engineer, Resident manager, Controller, Human resource department, Food and beverages director directly report to Executive Secretary. Director of Marketing and sales work closely with General Manager. They discuss strategies for sales and marketing in various market segments to increase the revenue of hotel.
In the same order, there is Chief engineer who takes care of every engineering challenge. Resident managers play an integral role in the organizational structure. They assist with administrative tasks and responsibilities for forecasting hotel budget, training staff to provide quality services. Yildiz et al. (2015) argued that Controller is responsible for taking financial decisions by monitoring, establishing and enforcing various policies. The job of human resource department is to fulfil the need for workforce requirement. Directors of a food and beverage company are an executive person who works in the hospitality department to make the business decision. They take care of the food and beverages department of the hotel. Resident manager Front stands in the hierarchal; position with the office manager and Executive Housekeepers. The job of the Resident manager contributes in taking care of all the residence and reports about residence comes from Reservation Manager, Front Desk Manager, Guest Services and PBX manager who directly face residence. Yildiz et al., (2015) argued that lower managers face the residence of the hotel on daily basis and a big part of the hospitality depends upon them. In Food and beverages department, Executive Chef takes care of the restaurant and controls Sous chef, Steward, Banquet chef and administrative assistant.
The organizational structure of a Restaurant includes Manager of the restaurant. Under the Manager in the hierarchy, there are Human Resource Department, Finance Department, Marketing Department and Executive Chef who do not have entire decision-making power. Manager of the Restaurant and the waiter deal with customers and communicate with them. Prayag et al. (2015) debated that Manager and the Waiter are responsible for showing most of the hospitality. Chefs of the restaurant cook the food for the restaurant and they work under Executive Chef.
This kind of functional and secure organizational structure the objectives of the organization reflect conflicts and duplication of work, decrease bad feedback from customers, creates a clear communication channel through the hierarchy.
1.3 Roles of the hospitality-related organizations and professional bodies with example
Hospitality related organizations and related bodies are increasing every year. The objectives of the organizations are still same; they coordinate with other industries to implement best in class hospitality. They are social institutions, Non-government and government agencies. This organization can be (BHA) British Hospitality organization, Institute of Hospitality, Business Institute of Innkeepers and Springboard UK. Prayag et al. (2015) debated that these organizations implement various new policies to increase the number of jobs in the industry, create competitive advantage in the UK, and contribute to the export industry of the country. Apart from these this organization create training opportunities for aspiring students in the industry, create the union to provide support to every worker in the industry. Springboard UK helps youths to reach their goal, they help them find jobs in this industry, provide learning opportunities and promote tourism and hospitality in the country.
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