THE CONTEMPORARY HOSPITALITY INDUSTRY
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.
The role of organizations related to hospitality industry identified through the presence and productivity of the professional bodies. In recent years, the number of these organizations has increased which have raised the importance to understand the use of many case studies and online presence of these organizations helped this research to move forward. The effective approach to find the website's information about the organizations came to me quickly.
These organizations maintained their communication vertically and horizontally with a different kind of industry. These organizations also make sure that with the rise of demand in the hospitality industry to organize sufficient amount of funding policies and benefit services to run the services. These agencies act as a (DMO) Destination marketing organization. Grissemann et al. (2013) argued that sub-national level organizations are responsible for regional, local governments and city work on political issues, right, responsibilities to adopt a sustainable hospitality industry with better policies and strategies.
National level organizations like (UNWTO) United Nations World Tourism Organizations, (WTTC) World Travel and Tourism Council, (IATA) International aviation Transport Association and the European Union, help to control different policies of the different government in right way so popular destinations get less affected. Grissemann et al. (2013) argued that there are some transborder level organizations have less effect on the industry. British Hospitality Association takes responsibilities for hotels, catering services, and restaurants. The British Hospitality Association supports and represents organizations that are over 100 years old and it is a private organization. BHA takes care of employment-related issues of these organization, provides intelligent regulation, sustainability. BHA closely works with (PARN) Professional Association Research Network to provide best quality service towards customers. BHA also regulates advertising related issues for other hospitality-related organizations.
2.1 Introduction to my role-play and assess the requirement of staffing
Here in this section, I am developing a role-play through which I will identify the staffing requirements in the hospitality industry. This helps me in delivering visual support for providing a recommendation to the hospitality industry. In different hospitality sectors such as hotel and accommodation sectors, skilled and dedicated staffs are required. The staffs need to be qualified and trained with past work experience in the similar sector. The staffs need to complete a bachelor degree in hotel management and need to possess customer-handling experience in any renowned hotel. The human resources management of a hospitality sector focuses on these criteria while recruiting employees in this specified sector.
2.2 Create a role-play and discuss the responsibilities and qualification needed
Here, a visual role play has been developed I am communicating with range of audiences to responsibility, roles and qualification of the hospitality sector staffs required from their better performance.
I: what are the major roles that a staff hospitality sector requires?
Audience: customer handling and maintaining customer requires are the prime focus of the t staff in the hospitality sector.
I: What is the responsibility that the hospitality staffs maintain in the concerned sector?
Audience: the responsibility of the staffs includes maintaining safety and security of the customers or tourist. Even, the health and hygiene also need to consider by the staff while dealing customers.
I: what qualification required for recruiting staffs in hospitality sector?
Audience: the staff must have competed management degree with 1 year experience in hospitality sector.
3.1 Analyse the operational, legislative and managerial developments of hospitality
Lack of skilled labor, suppression of cost, competition is operational issues that are present in the hospitality industry. Skilled labor is an issue in approximately in every countries hospitality industry. Hiring labor on contract basis is a challenge for the International hospitality business. Al-Refaie (2015) argued that price reduction is an issue for UK hospitality industry, which is lowering the profit margin of every organization. Increased competition is also an issue for this industry in the UK. The rise of a rivalry has decreased the amount of profit. There are now a lot of hospitality rooms available for visitors and most of these rooms are fully equipped to provide quality hospitality to their visitors.
There are two managerial issues, which is short span of events and increased competitions. Al-Refaie (2015) argued that very short span of events create problems for managers to sustain healthy balance sheets throughout the year. The premium class Inns in UK and hotels affected this industry in lot way. High charges to visitors for the premium class in and this handsome amount creates a problem for visitors. Competitions have changed the number of services provided to
Visitors and can be the reason for modernization of the industry. The biggest challenge for this industry is to create an image through marketing to attract customers. Torres et al. (2014) argued that because of the large diversity of the customers coming from the various countries. Organizations have to provide customized and excellent service to their customers and gather information from the customers to provide better service in future.
There is much legislation in this industry starting from legislation support for labor, workers, and visitors. Surroundings, cleanliness, security and office relations (Sfceurope.com, 2017) maintain these legislations. Cleanliness or hygiene is one of the most important subjects of the hospitality industry. Organizations follow strictly all the legislation regarding hygiene and food safety to protect their reputation. The surrounding is another main concern of this industry but it is rarely a concern for the organizations that provide premium services. Hospitality organizations consume many resources like water, electricity and many more things to provide best in class hospitality service to their customers. Hence, there is various legislation that has been implemented by the government to stop this and hospitality organizations are facing problems to keep up their quality of service (Sfceurope.com, 2017). These problems also pushed organizations to attract new investors for more funds. Increase in a number of competitions allowed organizations to increase the range of their services to attract customers.
4.1 & 4.2 Predict trends and development, impact analysis for the trends
Prediction of potential trends and developments in hospitality industry is mainly divided into two sectors. According to Dolmage et al. (2016), one of them is hotel sector of the hospitality industry and another one is food and beverage management. The hotel sector considers customer service to be their topmost priority. In present scenario, innovation is taking place in respect of many technological aspects such as check-in and checkout via cell phone and many more. It is an essential point to realize that In future most of the luxury related facilities provided with the help of the technology. Innovation in food and beverage management is necessary for hospitality industry to have a sustainable growth. Hospitality industry is trying out more healthy and organic drinks to their customers to lower down the production cost. This innovation trend is expecting to push growth of revenue.
The customer service is top of the list when the predictions are considered on potential future trends. In modern days where technology collates with our daily life, few amounts of advances in hospitality industry become necessary. Torres et al. (2014) argued that check-in and checkout with the help of cell phone have become common. The Economic impact of these trends attracts streams of expenses linked with employment. Employment in hospitality industry regarding technology staff may increase. The government faces an impact of these trends because with the rise of travel and tourism hospitality industry, the revenue of government also increases. This may result loosen legislation on the hospitality industry. In terms of revenue of the hospitality industry, expected to grow because of the future trends. New insights from the customer behaviour help food and beverage innovation and new technology will help hotel sector to grow revenue. Growth in numbers of travellers will also increase the growth of the revenue for the hotel sector. [Refer to Appendix 2]
This study is discussion on hospitality industry where the scope of this industry, current situation and diversity is one of our focuses. The organizational structure of this industry and values and roles of related industries have been discussed. There are managerial, legislative and operational issues in this industry. However, after analyzing the future trends and its potential affects the future of this industry is bright. The UK's hospitality industry provides a huge opportunity for employment. The hospitality industry in the UK is expecting to have smooth growth in 2018 and in the upcoming decade. This current time represents a fabulous prospect for successful government.
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