Hospitality industry is one of the most flourishing industries of the world. In this sector, there are many businesses which are included in this, for example, restaurants, pubs, bars and clubs, hotels, catering and other hospitality services. Customers are the strong pillars of this industry as it is all about giving customer services and making them satisfied. This sector is very diverse in terms of functionality and it is always changing according to the current trends in market. These changes are needed in industry as these interest of businesses is to meet their customer's expectations in every field. Over the years, development of other industry's has become a big issue because of various factors, such as, high competition in the industry. Influences of this sector keep on changing to meet the customer's needs. This report will discuss the analysis of hospitality sector by understanding its structure and staffing requirements. It will also focus on its development in terms of operational, managerial and legislative issues as well as potential trends which are affecting this sector in the United Kingdom.
1.1 Analyzing the current scale, scope and diversity of the hospitality industry
Hospitality industry is one of the most emerging sectors in United Kingdom. It was ranked as the 4thlargest industry in 2012 which generates approx. 53 billion GBP annually. In the UK alone, there are approximately 180,000 hospitality establishments which have more than 2 million employees working in this sector.
- Scope and Diversity of Hospitality Industry: Scope of the hospitality industry is huge in UK which refers to wide range of businesses it provides and different facilities. The hospitality economy is one of the UK’s key industries with huge growth in terms of job employment. In employment terms, restaurant is the largest sector, which is followed by pubs, bars and club.
Hospitality industries grows with approx. 89% of workforce and 43 % of self-catering accommodation, holiday parks and hotels. Restaurants have increased by 29% in the past years. The hospitality industry is very diverse due its innovation, ownership, classification and grading system, level of service, leisure facilities, future trends, etc. There are different types of hotels which provide standard services to their guests which can help them to grow in industry (Claveria, Monte, and Torra, 2015).
Different Types of Ownership in Hospitality Industry:
There are various types of ownership which are included in these sectors such as:
- Partnership: In this process, two or more individuals or parties work together for organization and helps in contribution in terms of money, labor, skills, etc.
- Franchising: In this type of ownership, one person uses company's name or brand to sell its services and for that, he has to pay to the company's owner.
- Contract: In this method, parties come into an agreement about their financialand non-financial terms of business.
- Leasing: Leasing is one of the famous ownerships in hospitality industry because in this method, money is being paid to main owner by occupant for using that property for business purposes.
1.2 Organizational structure of different hospitality organizations
In hospitality industry, there are so many organizational structures present in it such as five star hotels, restaurants, bars, parks, etc. All these structures have different functions according to their requirements. There are various organizational structures which exist in this sector such as line organizational, staff or functional authority organizational, matrix organizational structure, etc.
- Organizational Structure of a Five Star Hotel: Organizational structure of a five star hotel has a wide range of staff employees working there.This hierarchical structure of defines number of different positions and their responsibilities in the hotel. Regardless of size of hotel, it must have an organizational structure which helps in giving services to its customers in the most effective way possible (Bolfing, and Cadotte, 2015). Number of staff employees can vary in a big hotel, but their structure remains same, and chain-of-command, their roles and responsibilities of each department is essential to maintain well-functioning of the organization.
It comprises different organizational structures that consist of specific sub-categories such as:
- Executive Managers: These are managers which operate standards and policies of hotel and implement these factors into management system of organization. Their responsibility is to manage day-to-day activities happening in hotel and to look after the functions of various departments like food and beverage, laundry, and housekeeping.
- Assistant Managers: These are those employees who work under executive managers of the hotel and follow their instructions. There are several assistant managers in the organization; each assigned with a specific department of the hotel. Their responsibilities can include assigning work schedules to the employees, handling complaints and ensuring that hotel events are well organized (Jones, Hillier, and Comfort, 2016).
There are so many sub-categories which comes under assistant managers like
- Front office managers
- Food and beverages managers
- Sales managers
- Human resource and administration, etc.
Organizational Structure of Theme Park: Structure of a theme plan is similar to the hotels and restaurants only. If it is planned to operate in one location, then its functional structure would be chosen according to the requirements of their customers. In general, the following departments work in park to deliver their products and services:
- Legal & Administration
- Operations & Maintenance
- Marketing & Promotion
- Finance & Human Capital
- Food & Beverages
1.3 Role of hospitality industry related to organizations and professional bodies
Roles of hospitality industry are different for every organization and professional bodies like:
- British Hospitality Association:This is a private association which was established in the year 1907. It is concerned with the hotel, restaurant and catering companies operating in UK. The major function of BHA is that they work with government bodies to make proper business environment in which hospitality as well as tourism can function in efficient way. This association works usually in 4 key areas for the hospitality industry. For example:
- Sustainability: It helps to promote the development of economic, societal and environment related success of hospitality sector (Kandampully, Zhang, and Bilgihan, 2015).
- Health: One of most important functions of BII isto take actions in order to shape these industries and helps in developing policies to enhance health of industry and promoting wellness for their customers.
- Economy: BHA helps to develop an environment for the owners where hospitality industry can grow in competitive era and in global competition.
- Employment: It is also concerned in providing the education to individuals in order to give job to people who are interested in this field.
- British Institute of Inn keeping: It is also known as BII. It helps the licensed hospitality industries which are operating in UK. BII plays an important role for this sector. For example:
- Charitable Status: BII also acts as a foundation which works for the promotion of standards of hospitality industr It also helps to manage to develop a profitable business for the individuals working in this sector (Lederer, Van Niekerk, and Okumus, 2017).
- Advising: British Institute of Inn keeping also gives advice on legal, financial and licensing aspects of business of hospitality industry (Kim, Vogt, and Knutson, 2015).
- Membership Benefits: There are a number of benefits of the member of The British Institute of Inn keeping as events, newsletters, businesses magazine and mentoring services are provided by BII.
- Springboard UK: This organization basically helps individuals and unemployed who need a job or career for betterment of their life's standards. Springboard UK's main aim is to promote hospitality industry as most suitable sector to work. Another major function of Springboard UK is to work for addressing human resources and corporate social responsibility needs in their business associates and to raise funds for charity (Hospitality Staff Roles, Responsibilities and Qualifications,2017).
2.1 Assessing the Staffing requirements of different Hospitality Businesses
Staffing requirements are different for different organizations due to various needs of every business. It is a process of recruiting candidates who are capable of giving their best for the organization in which they are working. Hospitality is one of the biggest branches of the industries working in various departments and so, their staff requirements are also diverse. For example:
- Executive Managers,
- Chefs & Cooks (All Cuisines),
- Event Managers,
- Food & Beverages managers,
- Finance & Accounts,
- Front Office,
- General Managers,
- Guest relations,
- Heads of Departments,
- Maintenance & Engineering,
- Sales & Marketing, etc.
All these recruitments process of the organization should be done very carefully as it has a direct effect on their functionality. For this, proper interview has to be done by the HR department. Giving them proper training to understand their work more accurately (Lopes, 2016).
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2.2 Roles, responsibilities and qualification requirements for hospitality staff
It is very important for the hospitality industry to properly fulfill their roles and responsibilities which has been assigned to them in the organization. It should be ensured by the management team that every employee is giving their best service to the customers. There are different staff members who works in the hospitality industry, for example, manager, supervisor, management trainee, etc. All these employees have different roles and responsibilities in the organization to follow, which is explained below,
- Managers: Important responsibility of a manager in the company is to analyze and plan their sales and profits, he maintains the standards of their organization, and motivate the staff members to work more effectively. He also helps in hiring new staff employees. Minimum qualification for a manager is a certificate or an associate degree, must have organizational, administrative and interpersonal skills.
- Supervisor: Their main work in the organization is to look after the operations, giving training to the employees. Minimum qualification for this post is that, they must have a hotel management degree. Should posses good communication skills and must have a good work experience in the respective field (Pizam, Shapoval, and Ellis, 2016).
- Operational Staff members: Role of operational staff is to assist the daily responsibilities given to them, attend training programs, and must cross train in different departments. Minimum qualification for this post is that he should have certification in the area in which they are interested.
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3.1 AnalyzingOperational, Managerial and Legislative issues resulting from recent developments
In hospitality industry, there are various issues related to operational, legal or managerial in the organization. These factors affect the management of this sectors in several ways, for example,
- Managerial Issues : Responsibility of manager in the firm is very important in order to maintain the proper functioning. Some managerial issues which can arise, are as follows,
- There is poor planning, organizing, and administration of resources,
- Lack of guidance to employees,
- High employee turnover,
- There is a poor communication between employees and board members,
- Incomplete implementation and evaluation of products and services, etc.
- Operational Issues : There are so many operational issues which can arise in the organization (Radojevic, Stanisic, and Stanic, 2015). Such as,
- There is a lack of focus in the organization for making major decisions,
- Continual shortage of funds across the organization,
- Poor results from products and services, etc.
- Legislative Issues: There are a variety of legislation that defend employers, workers and customers and it also has an impact on the hospitality industry. This can be completed by factors, such as, cleanliness, surroundings, fitness & security and office relations of the organization. Cleanliness/Hygiene is a main factor which affects the hospitality industry most. They should consider it very carefully. Security measures or issues should also be considered by the hospitality business. In this industry, there are rules regarding the workplace relations that need to be followed to sustain in the industry.
3.2 Current image of the hospitality industry
The current hospitality industry is very exclusive and entertaining to work in and have a great experience in terms of responsibilities. It is an industry which has a huge scope of career choices to choose from. Currently, this industry faces a trend of globalization, as more and more individuals can travel without much of restrictions, which can affect them a lot. Hospitality industry offer an extraordinary chance to the people to understand and become familiar with various cultures in existing in the world. Customer focus and culture help this industry to grow a lot, for example,
- Customer Focus and Culture: Customers plays a very important role in the hospitality industry. If the organization is not fulfilling the requirement of their customers it can affect them a lot. It is important for every individual to acknowledge the fact that proper communication should be done in the organization in order to deliver right service to right customer. Due to globalization, it has become a significant aspect for the hospitality industry in relation to strategic planning of the significant number of international hospitality organizations. There are a lot of change in the culture of the people which should be carefully considered by the organization. The current hospitality and tourism industry offer an extraordinary chance to understand and be familiar with various cultures.
4.1 Predictions for Potential trends and Developments in Hospitality Industry
There is a huge competition in hospitality business which has become very intense and all the other organizations are coming up with something new and interesting every day for their customers (Organizational Structure of a Hotel,2018). This industry is growing very fast in the market with rapid change in the business environment and in travel and tourism sectors. There are various potential trends in this sector which are discussed in detail, as follows,
- Change in Lifestyle: This is the main trend which can have a great impact on hospitality sector as it is highly influenced by the changing lifestyles of their customers. For example, there is a huge trend of boutique hotels in London which provides a unique experience to their customers. So, there are various underlying changes which has to be accomplished in the coming years by the hospitality industry.
- Impact of Social Media: It is highly influenced with the increase in the use of social media by their customers. These industries can use this service to promote their services in the market by using tools like, Facebook and twitter (Ryan, 2015).
- Sustainability: Hotels today are more focused on the sustainability of their business. For example, if a hotel is located on a hill side, they will decide to remove all the trees surrounding the property then it will hamper the overall growth of the resort.
- Focus on Eco-friendly Management: Hospitality industry should focus on the environment. They should ensure not to harm it.
4.2 Impact analysis for the predicted trends and developments in Hospitality Industry
There is a huge scope for the development of this industry in UK. By implementing the continuous change in the trends in their system will help them to increase their growth in the target market. Various predicted trends and development which can arise in the future, are as follows,
- Gourmet Fast Food: By introducing this food style in the hospitality sector will ensure the success of their business in the market, as it a famous trend which is liked by many people.
- Street Food: It has a great influence on the hospitality industry as most people in UK tends to prefer street food more because it is cheaper in terms of price and is easily available in the market.
- Fusion Cooking: Experimenting with the food items will help the industry to gain popularity among people.
The impact of these factors on existing and new businesses has affected them a lot. By implementing these changes in the industry will help them to grow overall (Solnet, Kralj, and Baum, 2015).
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From the above report it can be concluded that global hospitality industry offers a vast opportunity for well-mannered employment as there is a huge scope of employment in this industry. This report also focuses on the various professional bodies working in this sector, such as, British hospitality association, British institute of inn keeping, springboard UK, etc. It also focuses on the current trends and future opportunities which is being implemented in this industry to grow.
- Claveria, O., Monte, E. and Torra, S., 2015.A new forecasting approach for the hospitality industry. International Journal of Contemporary HospitalityManagement.27(7). pp.1520-1538.
- Bolfing, C. P. and Cadotte, E. R., 2015. How Useful are Customer Satisfaction Processes for Hotel Industry Positioning Strategies?. In Proceedings of the 1988 Academy of Marketing Science (AMS) Annual Conference.pp. 82-86. Springer, Cham.
- Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some personal reflections on corporate challenges and research agendas. International Journal of Contemporary Hospitality Management.28(1). pp.36-67.
- Kandampully, J., Zhang, T. and Bilgihan, A., 2015.Customer loyalty: a review and future directions with a special focus on the hospitality industry. International Journal of Contemporary Hospitality Management.27(3). pp.379-414.
- Kim, M., Vogt, C. A. and Knutson, B. J., 2015. Relationships among customer satisfaction, delight, and loyalty in the hospitality industry. Journal of Hospitality & Tourism Research.39(2). pp.170-197.
- Lederer, J., Van Niekerk, M. and Okumus, F., 2017. Burnout in the Hospitality Industry: The Case of a Restaurant Manager. HOSPITALITY & TOURISM.p.81.