Contemporary Hospitality Industry

Report Based on Hospitality Industry

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In modern era, tourism and hospitality industry is growing fast. Contemporary hospitality management communicates latest developments or improvements as well as thinking on management of hospitality and tourism business in whole world (Bharwani and Jauhari, 2013). For attracting large number of consumers they have to make proper and appropriate developments of distinctive tourist destination. In industry which is related to hospitality includes different provision of accommodation, meals along with drinks in distinctive tourist destinations. There are five factors which having a impact on industry which includes Gross Domestic Product, employment, exports or in-bound spending, taxation as well as investment. Present report is based on hospitality industry which includes different restaurants, hotels, travel and tourism etc. Below mentioned report, discussion based on structure, scope as well as diversity of hospitality industry (IT and Internet’s Impact on Tourism and Hospitality Industry: Implementations of technologies for Hilton Hotels Group, 2017). Along with this analysis of staffing requirements of distinctive hospitality industries has to be discussed.

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Task A

1.1 Structure, scope and diversity of hospitality industry

Hospitality relates to business which assist in entertaining clients or other official visitors. It assist in maintaining relationship between visitors and employees of the firm who are working in this sector. When staff members provides or offers better services to their guests then will aid in increasing goodwill in competitive market. In hospitality industry, different companies should include which are hotels, restaurants, bars etc. For instance, Thomas Cook provides different services to their consumers and working in same industry (Bill Xu and Chan, 2010). Another one is McDonald, this is also working in hospitality industry and deliver best products and services to their consumers. Employers of McDonald provide various offers and schemes to their service users which will assist in increasing sales and generate more revenue.

Scope of hospitality industry refers to range of businesses which delivers distinctive services as well as facilities to their visitors which are accommodation, entertainment etc. In this sector, industries and business entities having a high growth opportunities in market. Restaurant are having large sector in hospitality industry and it provides employment to person (CG Davidson, McPhail and Barry, 2011). Along with this these are followed by pubs, bars etc. with hotel sectors which increasing slowly. This sector having a impact on community in a positive way which provide better employment to members of society which reduces problem of unemployment. In hospitality industry, restaurant sector help employees in earning income from other industries and in this approx. 2.4 million people are employed. Hospitality industry in UK having fourth biggest industry in terms of employment and it has been contributed estimated £57 billion Gross domestic product to UK in 2014. In market, gross fixed capital investment has been done by them which is approx. £5 billion. Along with this foreign exchange export earning is £7.4 billion. In hospitality industry, average turnover of employees is 31%. There are different type of ownership in hotel industry is private owned, leased, managed hotels as well as franchises (Harkison, Poulston and Ginny Kim, 2011). Hospitality sector of UK involves distinctive businesses such as foods and beverages, accommodation, pubs, bars etc. In industry, there are some big players includes Whitbread PLC, Hilton Hotel, McDonald.

Hospitality industry covers wide range of organisation includes travel and tourism, restaurants etc. For example, McDonald is a restaurant and it provides best and qualitative products and services such as food, drink etc. to their consumers which will aid in fulfilling needs and wants of them. Just like Thomas Cook is a travel agent and provide better services related to travel and tourism and also provide accommodation to their service user (Hsieh, 2012). In hotel industry, Hilton hotel provide banquet for conducting any event or conferences to companies and deliver best services to their consumers. In this sector, opportunities for growth is high.

1.2 Organisational structure of different hospitality industry

Structure of firm refers to different operational activities which they are doing in business entity. Activities include task allocation, coordination along with supervision which assist in attaining goals and objectives of business entity. It determines that how roles and responsibilities as well as power should be assigned, controlled and coordinated so that they can flow correct information among different levels of administration (Ip, Leung and Law, 2011). This structure depends on objectives as well as strategy of company which is made by employer to reap targets and success in competitive market.

There are different type of structure which they can use which includes functional, divisional and matrix structure. Functional structure is a common structure which can be used by business organisation as it divides into small groups which is based on specialized functional areas like finance, marketing etc. Divisional structure is also a part of structure in which groups divided according to function or can be correspond to products. Matrix structure is a type of structure in which staff members can report to relationship among workers and higher authorities that they have to set as a grid but not in traditional hierarchy (Jani and Han, 2011).

In large business entities, for example Hilton hotel level of management or administration increases and structure of firm become taller. There are two type of organisational structure there which company can use whether it is tall or flat structure (Janta, 2011). If they are using tall structure then business entity having hierarchy with strong managerial control as well as they have to do proper supervision of employees. If staff members of Hilton Hotel adopting flat structure then they are having less management levels and this will increases workload of manager and each employer has to put more staff to control.

Organisational structure of Hilton Hotel

Illustration 1: Organisational structure of Hilton Hotel, 2017
(Source: Organisational chart of Hilton Hotel, 2017)

To do better operations and want to attain more success then they can use both tall and flat structure. In Hilton Hotel, tall structure assist managing director of company as well as flat structure helps in managing different departments at each level. When employer of company is using tall structure then they do not have any direct communication among their subordinates (King, 2010). Operational areas are reception, restaurant, bar, meeting rooms etc. Functional areas includes sales and marketing, human resource, accounting and administration.

Different departments in Hotel are:

Another organisation is McDonald and in this they are following flat structure so that easily communication can be done among staff members. Executive organisational departments are chairman, chief executive officer as well as chief operating officer. Departments are corporate affairs, marketing, human resources, regional managers, finance, information as well as strategic planning. Functional departments are legal, consumer services, franchising, security, hygiene, restaurant services etc.

Organisational Chart of McDonald

Illustration 2: Organisational Chart of McDonald, 2017
(Source: Organisational Chart of McDonald, 2017)

Employees of firm have to use appropriate structure as it is important for making correct and relevant decision making. If small organisation wants to attain growth then they have to add some management levels so that their roles and responsibilities become more defined. This will assist business entity in expanding growth in market and resolve their issues associated to human resources which involves managerial authority (Law, Buhalis and Cobanoglu, 2014). If they are adopting correct structure then this will aid in reaping goals and objectives as well as accomplish targets.

1.3 Role of hospitality related organisation and professional bodies in this sector

There are so many companies who are working in hospitality industry as well as professional bodies in UK which assist in providing manpower as well as skilled person to them which will aid in fulfilling desires of consumers. These professional bodies assist in providing information which are essential to them for improvement and changing its policies. Business entities includes Institute of Hospitality, British institute of Innkeepers, People 1st, Springboard UK, PACE etc. Without these, hospitality as well as small businesses would put more effort in current economic climate (Ramanathan and Ramanathan, 2011). In this information or data covers distinctive issues which include nation as well as skills strategies, apprenticeship, training as well as national registers.

British Institute of Innkeepers is a charity which is registered and also a private limited company which was founded in 1891 by getting support of Brewer's society. It is a professional body whose mission is to promote their training programmes or education of person who are preparing for their day to day premises and increases their sales. These bodies having a large significance to Hilton Hotel. These bodies provides lot of information for owners along with managers of their companies that provide opportunities.

British Hospitality Association is related to restaurant which is non-government body which represent hotels, clubs, restaurants as well as other hospitality related organisation (Ryu, Han and Jang, 2010). It promotes interests of hospitality industry to regulatory bodies and it operates by membership based system.

Another one is Institute of Hospitality and this is a professional membership body for managers. It provides aspiration to managers who work and study in hospitality as well as tourism industries. This association provide help more than 10000 professionals in 100 countries which aid in growing knowledge and expertise by providing or offering a wide range of membership services which is having a high quality. Mission statement of firm is to provide help to other members to achieve their high potential within hospitality industry by professional recognition, status and professional development (Ryu, Lee and Gon Kim, 2012).

Springboard UK is also a registered charity which helps young people to achieve their potential. Along with this they support to unemployed people of any age into work as well as people have to face multiple barriers to work. For providing better services they have to use or adopt appropriate resources to attain success in hospitality industry.

1.4 Staffing requirement of different hospitality industry

Hospitality industry includes different fields within service industry which includes lodging, event planning, transportation as well as additional fields within tourism industry. Usage rate or vacancy rate is an important variable for hospitality industry. Staffing in hospitality industry is necessary by hiring new employees for management as well as operational role. There are different hospitality industries which includes hotels, restaurants or travel and tourism. In all industries staffing is necessary to attain goals and objectives as well as reap targets. For delivering better products and services to consumers skilled labour is necessary which will assist in attaining objectives. In restaurant industry, McDonald provide employment more than approx. 15000 employees in its outlets in different cities of UK (Sainaghi, 2010). It includes management roles on food and services, business manager, finance employer as well as other staff related to basic operations. They provide different jobs to many people in distinctive roles and responsibilities. There are some various key jobs to different people who are working in hospitality sector of UK which includes catering manager, hotel, restaurant manager, counter boys, outlet cleaner, kitchen operation's in charge, housekeeping staff.

In terms of compensation, organisation having tough competition in competitive market and these are based on roles and responsibilities. In different industries of hospitality sector whether it is hotel, restaurant or any travel and tourism business staff is required to provide or deliver better products and services so that consumers cannot face any issues and according to that company can increase sales and generate more revenue (Sirirak, Islam and Ba Khang, 2011). In McDonald, they have to analyse needs and wants and have to recruit skilled labour which help in preparing best and quality foods to service user.

Employees of Hilton Hotel having some characteristics which helps in performing their roles in a better way which includes:

Likewise, in Hilton hotel they have to recruit skilled person in different departments as they helps in preparing budgets for spending or they can do appropriate marketing which will helps in doing proper promotion of products and services (Tavitiyaman, Qiu Zhang and Qu, 2012).

In Travel and tourism sector, new staff members give new ideas for improvement of different tourist destinations which aid in attracting large number of visitors. So, it is essential that they have to recruit new employees to develop places.

1.5 Roles, responsibilities and qualification requirement of hospitality staff

Hospitality sector having a huge area and that having a different range of skills. When manager of companies recruit new employees than they provide a strong mix of core qualifications which having a professional requirements.

Some essential roles of hospitality staff includes:

Manager of Hilton Hotel have to give proper attention to their staff members by conducting training programme so that they can deliver better services to their consumers and by training they can develop their skills and knowledge of their employees.

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Responsibilities of staff which are divided on basis of their departments in hotel and their job position. Main responsibilities of staff members of Hilton Hotel includes:

Employer have to provide proper and appropriate training so that they can meet needs of industry. When employees providing care to their tourist then it is necessary to them that they have to maintain or enhance standard of their staff members (Kusluvan and et. al., 2010). Role of administrative bodies in hospitality industry related to services which will assist in providing better services to their customers. Real management functions in hospitality includes business management, asset, logistics management, financial, staff, administration, risk management etc. Employees of business entity have to provide proper training which assist in developing skills and attaining knowledge so that they can deliver better services to them. In competitive industry, proper environment should be provided for managers as well as performance requirements are very high. They have to improve their performance of their employees so that they can conduct impressive programmes so that they can attain success in market.

There are some essential qualifications which are required for hospitality management includes:

1.6 Current image of industry

In hospitality industry, there are different sectors which delivers better facilities to their consumers includes leisure, foods and beverages as well as accommodation services in distinctive type of businesses which includes bars, restaurants, hotels as well as other duties of hospitality (Bill Xu and Chan, 2010). Image refers to impression which a individual person, business entities as well as merchandise presents to a public and image is a term which help organization in boosting sales and according to that they can generate more revenue. Manager of Hilton Hotel have to built or maintain their brand image in competitive market as it refers to general expression of merchandise which is manufactured for potential consumers.

Regional hotel sector is expanding or growing but in most cities it increases slowly. It forecast economic slowdown by 2.3%. Hospitality industry is optimistic and in this staff members of Hilton Hotel offer best facilities to their visitors. Brand image as well as awareness and environment created by multi-channel raise competition. They have to meet challenges in hospitality sector by using initiatives with strategic marketing (CG Davidson, McPhail and Barry, 2011). Goodwill and brand image is very much essential for business entity as consumers take correct judgement by checking reviews and image in competitive market that Hilton Hotel provide best services and facilities to their service users. Hilton hotel is a famous hotel as it provides qualitative products to their visitors. Staff members have to adopt updated technology as well as tools and techniques which aid them in providing better services to their service users.

Image of business is also a tool which assist in attracting visitors and for this manager of Hilton Hotel have to adopt appropriate as well as relevant strategies at international level which assist in fulfilling needs, wants and desires of service users. For attaining success in domestic and international market, then higher level authorities have to use creative and innovative ideas for development or improvement which help firm in boosting their image in competitive market. Staff members of Hilton Hotel have to use correct process for doing planning which will succour in reducing risk and helps in overcoming from challenges which they are facing. In reaping success in community, they have to deliver products and facilities according to needs and wants of consumers (Harkison, Poulston and Ginny Kim, 2011).

Hilton Hotel have implemented many plans and new as well as innovative ideas to reduce risk by minimizing losses and earning more profits. Image is necessary for attaining success in hospitality sector for expanding growth in economy.

Task 2

2.1 Evaluation of issues which affect recent developments

Operational issues are occur in the business and it affect the performance as well as having a adverse impact on strategy execution. Hospitality operations management is considered as be the two levels which includes strategic operations administration along with unit level. It includes strategic concerns which includes location, integration, affiliation, implementation and adaptation. Result areas are assets, productivity, service, income as well as quality. Managerial issues are those which are faced by employees of firm to attain desired results. Legal issues are related to law and it requires decision of court. It refers to point on which evidence is undisputed and outcome of which depends on court's interpretation of law (Hsieh, 2012).

It is not a simple task to maintain an effective business since it requires to cover all the basic variables which having a influence on business development or improvement. Actually every component greatly affect a business because of their unpredictable nature or expansive idea. Operational, administrative and authoritative issues affect hospitality industry as entire business is controlled by these components only.

Operational issues

An association need to made a qualitative products for consumers so that they can satisfy desires of their service user at overseas level. Essentially it covers the recruitment of best candidates by leading choice process and in addition it likewise direct a web based advertising to advance the organization merchandise. Apart from this one of a fundamental rationale of the operational techniques is to make a standard quality products or give best facilities to their customers (Jani and Han, 2011). In fact, it is rely upon upliftment of an entire society by giving business opportunities because of development or improvement in a hospitality area.


Management of a huge business is not a simple task though it requested an affair or skilled administrators to execute their plans and procedures to accomplish their objectives and goals in a specific time frame. Fundamentally it quantifies the part or execution of administration with the assistance of different helpful strategies for instance green production network administration, conducting development or improvement strategy or venture as it is depends on growth. The fundamental explanation for rising an administrative issues are inappropriate administration and also disappointment in executing successful plans or strategies which are used by them for development or improvement (Janta, 2011).

Legal issues

Regulatory bodies of a country authorized numerous more laws, principles or controls for general accommodation division or to secure the interest of buyers and Hilton Hotel. In fact, business entity need to procure a permit from local ministry bodies before setting up their business. Where as legislation of firm amended large number of acts and segments to determine any debate or conflicts which may be happened while trading merchandise and enterprises in the whole world.

These are issues which are faced by employees of Hilton hotel and it generates while doing developments (King, 2010). This will helps in attaining goals and objectives in future. So they have to adopt appropriate rules and regulations as well as policies so that they cannot face any issues and attain targets.

2.2 Predicted future trends and developments in hospitality industry

Trend forecasting is a useful way which assist in increasing sales as well as market growth so that they can determine possible trends which assist in attaining profits in future. They have to utilize appropriate sources so that they can forecast trends in a better way (Kong, Cheung and Qiu Zhang, 2010). There are some methods which can be used by staff members of Hilton hotel to forecasting trends which includes Genius forecasting, trend extrapolation, consensus method, simulation method such as mathematical analog, multiple regression, gaming analogs etc. Another method is cross impact matrix method which assist in maintaining relationships between events and developments which are not revealed by the forecasting techniques so that they can not face any issues.

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Over the most recent 20 years there are numerous tremendous changes in hospitality segment as individuals begin spending more measure of cash in relaxation and holidays travel. On e development which has helped hospitality business is in regards to presentation of spending airlines, that have delivered without ease to clients who make a trip starting with one location then onto next. Again there are many spending inns like chief motel that helps visitors in giving shoddy lodging administrations rate and settlement (Kusluvan and et. al., 2010). Encourage innovations are there which have incorporated web based business which enables clients in giving simplicity during time spent booking through Internet and they to can likewise roll out improvements in appointments which are already made. With these sorts of developments, it is workable for the clients to discover different data in respects with any lodging and they can likewise pick suitable settlement according to their decision. Enormous organizations can likewise turn out to be vast when they converge with different acquisitions and associations.

At present, there are numerous mechanical advancements and improvement which helps in making life simple and agreeable. Effect of globalization is likewise there in hospitality business where great many people's thinking is on how they will build their business in whole world. From such trends, it can be seen that, future will be there to give better trends which will enhance hospitality business. Firstly, future will give enhanced accommodation and lodging offices that will improve much industry (Law, Buhalis and Cobanoglu, 2014). There will be a presentation of numerous shrewd lodgings who will make work of cutting edge advancements where fingerprints of visitors will be required to perform different operations in accommodation business. Keeping in mind the end goal to have smooth operations in lodging, fulfilled representatives will be required which implies there will be an expansion in pay of staff. The new patterns will likewise incorporate more created and green Eco - lodgings and offices like amusement parks, gambling club and theatres.

2.3 Impact analysis of trend and developments

Change impact analysis is a method which assist in evaluating and identifying potential consequences which aid in making changes as well as estimating the changes that what needs should be modified to accomplish the changes. Along with this staff members of Hilton hotel have to focus on impact analysis in terms of changes which they want to do within details of designs. This tool assist in determining relevant considerations so that they can identify as well as analyse impact of changes which they have done (Ramanathan and Ramanathan, 2011).

Being a main accommodation business association of United Kingdom, Hilton hotel conducts examination of effect about most recent trends and advancements in lodging industry. As there are proceed with changes in decisions , choices as well as preferences of buyers in term of administrations by lodgings. So business association must consider and screen on consistent premise to anticipate or evaluate future request of merchandise and administrations. This investigation benefits organization in long term to finish targets and objectives of benefit expansion and income creating. Another effect of these trend and improvement investigation is that specified business association can limit its cost on less requested item and administrations later on which minimise limit wastage of use for purchasers (Sainaghi, 2010).

Another effect of trend and advancement investigation in hospitality industry in United Kingdom is that it empowers the organization to use its assets for right venture which will be producing more benefit sooner rather than later, so that all normal or man made assets can be devoured in a successful and efficient path in long haul. Then again, there is another positive effect or impact of examining most recent trend of purchasers time to time is that it gives all conceivable chances to investigate business in long term of Hilton hotel at United Kingdom and everywhere throughout world. There are two sorts of examination of pattern which have generally positive and infrequently negative effect on business.

Some significant components can be interpreted in trend investigation like Revenues, costs and pay development prospects for the company, focused variables the organization faces, expected return on value or resources in business (Sirirak, Islam and Ba Khang, 2011). Some imperative impacts in specialized division of the firm are increment its authentic price, increase exchanging volume after some time by giving altered administrations to buyers. Last effect of trend investigation is that is recognizes competitor association technique which prompts preferences in future. Along these lines there are numerous great effect which will profit the association for long time.


From the above report, it has been interpreted that for attaining targets and success in hospitality industry, staff members of firm have to use innovative and creative ideas. Along with this they have to deliver products and facilities according to needs and wants of visitors so that they cannot face any issue and also gain best experience. In Hospitality industry, there are different sectors which are included such as hotels, bars, restaurants etc. and in each and every sector they have to deliver better and qualitative products. Manager of Hilton Hotel have to recruit best staff in distinctive hospitality industry which will helps them in maintaining their standards. In different sector, appropriate and relevant organisational structure should be adopt so that they can not face any issues in communicating actual information and attaining success in competitive market. Along with this staff members of Hotel have to evaluate issues which are generated from recent developments and these affect hospitality industry.


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