The study will shade on the contemporary issue of the hospitality industry. It will provide an analysis on the staffing requirements and many others. It will discuss on the structure of the venture. The legislative, operational and managerial issues will be negotiated. It will give the impact of the customers after developing the system of the venture of hospitality industry. The organisational theory and system theory will be discussed for analysing the topic in the appropriate way.
In the 21st century, the fundamental stand and style of living and touring has changed drastically over the years. The number of mass who sets goals and desires for high profile living standards, exploring and travelling has been growing day by day and the role of hospitality management has made these conditions much more updated. The hospitality management sector includes unique cuisines, innovative fooding and lodging, special services, discounts and more evolving around meeting customer and guest satisfaction. Hospitality industry includes different industries and contexts and according to the same, the structure and operations differ. For example, it cannot be said that operational strategies of aviation and hotels are not same. Based on the same, scopes and targets of different hospitality industry also vary. If a respective hospitality firm is seeking for specific service, it is important to make stress on qualification of staffs as well as availability of resources. The problem statement of the report is to explore such diversities of hospitality industry in terms of size, scopes and requirements.
A.C 1.1: Current scale, scope and size of hospitality industry
In the modern age of business, hospitality industry is not only focused on providing services and hosting but real world constructive methodologies are deliberately involved to understand guest psychology and preferences.
Scope: According to the scholar, the scope and diversification of hospitality sector is one of the widest ranges among every other industry. The reason being the kind of service and productivity created by this industry is in huge demand and required in every other sector. A burning example of the fact is that the hospitality industry is firmly interlinked with the travel and tourism industry.
Scale: Due to increasing interest of people and more engagement of resources hospitality sector is covering a vast percentage of employees and is a proof of the hospitality sector is one of the rapidly growing industries in current world. The reports and research depicts that the travel and tourism industry is directly proportional to the hospitality industry. The accomplishment of such scope requires the right selection of methods and utilization (Brown et al. 2014, p.60).
Activity: Extraordinary selling components in hospitality refers to the promotion or increase in marketing with specific methodologies. The methodologies refer to the key elements or components displayed or sold by any hospitality sector. For example, the park international hotel is well known for its special royal services and celebrity visits. As stated by the scholar, every hospitality sector possesses maximum four elements of selling, to which the guests and customers are deliberately attracted or drawn to. These signature components are highly responsible for covering 80% of the company revenue, falling under the hospitality category.
In the hospitality industry, the employees need to maintain the diversity appropriately as they can provide better service to the customers of different religion like Christian and so on. The hospitality industry needs to provide food, accommodation, and drinks properly as per the choice of the customers. It helps to maintain diversity in the workplace.
A.C 1.2: Discussion of the organizational structure of different hospitality industries
In the hospitality industry, there exist a large number of organizations. The absolute hotel services (AHS) is one of the recognized hospitality management organizations and a number of organizations follows the methods of eminent decision making for its new ventures. Decision-making is a critical part of organizational behavior in hospitality management. For example, the launching of a brand new feature for the Bishop’s Gate Hotel can either requires high profile grooming and spa centres for guests and VIP’s requires huge percentage of firm expenditure or can also be counted as an one time investment. As opined by the scholar, in order to run the entire plan, an in depth idea of assumptions of customer’s choice is very important, where the hospitality sector plays a key role. In order to meet such targets, critical thinking skills are required along with creativity. There are five kinds of thinking that aid the hospitality industry in decision-making, among which the convergent and the lateral are mostly used (Singal, 2014).
Hospitality industry has four unmistakable business sections
(a) Ownership of lodgings
(b) Leasing of lodgings
(c) Management of lodgings
(d) Brand proprietorship/franchisor
The level of adaptability to lead
Business in it is possible that one or every one of the four sections is the head separating factor that isolates lodging REITs
(a) Hotel proprietorship
Lodging proprietors infer their wage for the most part as rental installments got from renting of inns they possess. Regularly, the lodging proprietor is aloof as for every working choice and is not in charge of working capital or working costs. Therefore, hotel proprietors proprietors have less money-related hazard.
(b) Leasing of hotels
An inn renting organization is an occupant that accepts every single working commitment, and in addition, the monetary commitments of subsidizing, working capital, working costs, and lease. Its benefits are the assets left finished after all property-related costs have been paid. The essential income sources incorporate room income, sustenance and drink deals, and so forth. Normally, inn renting organizations expect the money related hazard in the event of a downturn yet they likewise have more control of lodging operations and any subsequent upside.
(c) Hotel Management
An administration organization gives administration administrations to lodging proprietors for an expense. Administration administrations incorporate lodging staff individuals, working frameworks and methods, and so forth. The administration expense has two segments: base and motivating force. Base administration charges are ascertained as a level of gross inn incomes and by and large normal around 2-3%. This base administration
Franchisors offer inn proprietors the privilege to subsidiary with their image, which enables lodging proprietors to utilize the brand name, logos, and gives access to mark circulation channels. As a byproduct of brand connection, the lodging proprietors pay an establishment charge or eminence, in light of a level of the inn's income. Despite the fact that franchisors do not straightforwardly partake in dealing with the lodging, they endorse the inn designs, area and survey the operations of the inns to guarantee gauges are kept.
Contribution of convergent and lateral thinking in surpassing targets
The convergent method of thinking refers to the constructive form of thinking where the hospitality team can improvise specific reasoning and logic to calculate how likable the new launch should be for public. The lateral method refers to the post established part, where the issues arising after the effort is solved through less constructive but creative thinking. For example, the courtyard by Marriott set alternatives top less used features to gain profit through creative ideas, in the recent years.
A blazing example of creative thinking implementation is the office of Google situated in the US. The establishment of luxurious fun parks, pools, fancy elevators is not categorized under the basic requirements of an office infrastructure. Hospitality group is responsible for the constant implementation of innovative ideas and benefiting the organization in employee retention, comfort, and client comfort and reputation improvement. The concept of effective thinking plays a key role in crises (Okumus, 2013, p.58).
Organisational structure can be of mainly three types. Those are tall, flat and matrix. In addition to that, tall organisational structure has various level of hierarchy. In tall organisation, there management layers develops their own rules and procedures. Moreover, there is a clear line of communication in tall organisation. Form the other business structure tall organisation faces higher cost. The flat structure mainly identifies those are having no level lo management between the staff level employees and the management. If a hotel has flat level of management then it is helpful for removing the excess layers as well as speedup the level of communication between employees. As per the view of Singal (2014), in the matrix level of organisational structure they are mainly set up in a grid format rather than any traditional hierarchy. In Matrix organisational structure, the resources can be used in an efficient manner along with that various porjecst are coordinate in the functional department.
A.C 1.3: Role of hospitality
As mentioned, the range of hospitality industry is vast. It requires plenty of surveys, data collection and information, researches and trials for implementing new ideas. It involves a large amount of risk factors as well. In some cases, huge organizations like the De sovrani, King crown relies on the particular sector for 60% of their final revenue. The responsibilities require immense number of methods, skill sets and new ideologies (Jones et al. 2016, p.60).
British hospitality Association
British hospitality association represents the non government bodies of hotels and restaurants and provides profit for developing the country. Non government restaurants provide a particular percentage of profit to the government for developing the country.
Institute of hospitality
The institute of hospitality provides education related to the hospitality industry. It helps to provide proper education to the students as they can earn huge profit from running the restaurants, hotels or club in the effective way.
British institute of Innkeeper's
The British institute of Innkeeper’s is maintaining a professional body for the licensed retail industry. In addition to that, this BII is mainly registered in terms of charity those are remit for raising some of the professional standards. Moreover, the profits those are generated form BIIAB are mostly covenanted in BII in terms of supporting their aims of charity.
Launching gaming centres and entertainment clubs
As per the scholar, different groups of guests have different expectations. There are sections of spenders who do not mind making expenditures if they are provided with top quality services. The word of mouth also plays a key role here to build an intact reputation in the market. The hospitality industry is constantly increasing business by introducing unique hangout places especially for the youth, by gathering ideas from all over the planet.
Many a times, it has been noticed that, the staffs are not able to do the effectively. Hence, the organisation provides training for improving their quality. It is called semi-skilled staff.
There are a large number of universities and colleges introducing courses on hospitality management and encouraging specializations and honors in specific sections. The requirement of staff usually varies as recruiters from huge organizations hire fresher’s as well as experienced employees depending on the criteria.
The requirement conditions evolve around, qualifiers of food and service management, hotel and accommodation management, diploma of hospitality management. The right judgment on hiring new staff depends on the human resource team of hospitality. The usage of effective techniques like, setting the right expectations, hospitality management practices, can help bring out the other skillets like, creative and critical thinking, coordinating skill, soft skills and more in new hires.
The soft skills and service providing techniques are mandatory unlike the high level qualifications because, it is necessary to understand guest psychology at situations, which shall eventually improve through experience (Kandampully et al. 2015, p.147).
Figure 3: Arrival of tourists in UK
(Source: bbc.com 2017)
A.C: 2.2 Responsibility and role of staffs
It is to notify that, though the management is largely responsible for the over accomplishment of customer or guest service. The staff team, that might be the waiters, servers, plumbers, electricians, cooks, is the direct point of contacts to the valuable guests. In Amberley Castle the responsibility of maintaining the hotel is divided between the receptionists along with that the staff. In addition to that, the staff and receptionist work together in order to provide a good brand image in the compatible market of hotel industry. Their responsibility not only involves providing services but also to protect company reputation, by implementing proper behavioural strategies, coordination and collaboration while working in teams. It also involves 100% attention to guests. This is one of the main plus points for guest or visitor attraction and spreading a positive word of mouth about the organization. These set of rules require personal contribution along with hospitality training and education (Wang et al. 2014).
The employees try to focus on the way of manufacturing the products and their services for earning huge profit in the market.
On the other hand, the management team tries to handle the way of completing the job. Different management teams like operational management, team management play different roles like providing guideline to the employees, managing the manufacturing procedure and many others.
In a hotel the receptionist has various roles and responsibilities for maintain a good reputation and solving the problems. In the opinion of Kandampully et al. (2015), the main duty of receptionist is to direct the visitors for maintaining employees along with that has the dusty for maintaining some security of the hotel as well. In order to be a good receptionist there requires some qualification. The main skills are should have the telephonic skills, customer focus, has the ability to tackle per pressure and supply management qualification.
A.C 3.2: Current image of industry
As mentioned earlier, the travel and the hospitality industry are the most fast-paced industries, taking over the market, with time. A contribution of 70 to 80 % of GDP arrives from the hospitality industry. This industry has no leisure or drop in revenue earning, as the researches display steep growth in graphs, with continuous success (bbc.com 2017).
It is not only providing a high revenue margin, but also proving employment to a large section of population. The nations with top hospitality markets such as, the United States, US, Thailand, has more than 60% of the population employed in this category.
The current upliftment of the hospitality industry is making positive influence to other industries as well.
A.C 3.1: Analysis of legislative, operational and managerial issues
In the business venture of hospitality industries, the authority faces different types of problems like operational, managerial and legislative issues. As per the viewpoint of renowned author, operational issues are comprised of employee turnover, natural disasters, operating costs and many others.
Employee turnover- In the hospitality industry, employees are not able to maintain the office hour’s job. Therefore, many times, the employees lose interest in working. It has been seen that, the cost of turnover of a worker is 30% of yearly salary.
Operating costs: At present, the restaurant provides wifi service to their customers. It increases the operating cost of the venture.
For example, in the report of British Hospitality Association (BHA), around 3 million workers work in hospitality industry. However, the number of staff is very low. 37% workers are from EU (bbc.com, 2017).
On the contrary, it has been seen that, the employees of hospitality industry do not receive cooperation from other workers. According to renowned scholar, the authority of restaurants is not able to manage their work procedure in the effective way.
At present, the business ventures face huge competition in the market. Around 73% ventures say that the competition is very high in the market (impos.com.au, 2017). The authority of restaurants needs to develop the product quality for their position. Many times, the managerial department is not able to hire best staff due to financial problem. For example, 55% restaurants of UK have believed that high competition is the reason of revenue loss.
Many restaurants of hospitality industries do not follow the legislation in the appropriate way. As per the Food Safety Act 2011, the restaurants need to serve good quality food to their customers. However, in order to earn extra profit, the authority of restaurants has tendency of keeping the wastage food of customers and serve it in the different way. For example, as per of 2016, the restaurants of UK has scored 2 or below than that (bbc.com, 2016).
Therefore, the above-mentioned issues are identified in the modern era. The authority of restaurants should develop their current state for increasing their sale in the contemporary era.
A.C 4.1: Development and future trends of industry of hospitality
Predicted future trends
If the authorities of restaurants are not able to remove their contemporary issues, they can face huge loss. For example, in the report of 2013, it has been noticed that around 3000 million people has worked in the hospitality industry. Therefore, it helps to increase the economic condition of UK. If the authority of restaurants and hotels is not able to solve the legislative or operating issues, the economic growth of country will decrease.
As suggested by eminent writer, if the restaurants are able to provide good quality food to their customers, they would be able to hold their position. They need to hire efficient staff s for holding their good impact in the contemporary market (Law et al. 2014, p.98).
In order to recover the issues like managerial issue, legislative issue and many others of hospitality industry, the authority needs to maintain the legislation in the efficient way. In the opinion of renowned author, if the restaurant authority were able to maintain the legislation like Food Safety Act 2011, Food Quality Protection Act 1996, they would be able to develop the position of restaurants in the merchandise market.
As per the organisational theory, the restaurant's authority needs to follow the specific policy like maintaining legislation for bringing effective outcome. As mentioned by renowned author, many times, it has been seen that the food quality of restaurant is very poor. In order to remove the above-mentioned problem, the authority should follow the Food Quality protection Act 1996 for earning positive outcome. It helps to uplift the position of the venture in the competitive market (Kim et al. 2015, p.98).
On the contrary, eminent scholar stated that, if the restaurant authority can provide training to their customers, they would be able to increase the quality of food. Therefore, the customers would prefer to receive the service of restaurants, who maintains their service quality.
A.C 4.2: Impact analysis
According to renowned author if the organisations are able to provide proper service to the customers, it can bring profit for the ventures of the hospitality industry. It has been noticed that, for solving the above-mentioned issues like legislative or managerial issue, the authority has developed few strategies like maintaining legislation, hiring efficient staffs and many others. If the organisations of hospitality industries are able to develop the strategies, they can provide satisfaction to their customers. Providing satisfaction to the customers is the motto of the ventures of hospitality industry. Therefore, the development of the ventures of hospitality industry can leave positive impact on the mind of consumers (impos.com.au 2017).
On the contrary, eminent narrator stated that, if the ventures of hospitality industry are able to communicate with their consumers, they would be able to know the requirements of them. Henceforth, they can prepare the foods as per the requirement. It helps to earn customer’s satisfaction in the appropriate way.
However, many times, it has been observed that, the organisations are not able to remove the issues like legislative or managerial issue. In this case, the authority is not able to meet the requirement of customers. As customers do not receive high quality food, it can leave the negative impact on the mind of consumers in the contemporary market.
In the modern era, people like to spend their holidays by travelling. In case of travelling, the hospitality industry has played the great role. However, the ventures of hospitality industry have faced different types of problems like staff related problems, food quality and many others. In order to solve the problems, government has introduced with legislation like Food Quality Protection Act 1996 and many others. The organisational theory helps to develop the current state of the enterprises of hospitality industry. Therefore, it can be said that different business contexts require different types of hospitality supports along with operational requirements. It is very evident that it is the structure as well as expertise of engaged professionals who decide the height of service quality. In the above report, such prospects are highlighted along with some possibilities future development of hospitality industry.
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