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Understanding Hospitality Industry for future development

University: Edinburgh Napier University

  • Unit No: 8
  • Level: Post Graduate/University
  • Pages 11 / Words 2750
  • Paper Type: Assignment
  • Course Code: NZ2539
  • Downloads: 0

INTRODUCTION

For economies of various nations, the hospitality industry has now become a major revenue generator. In the travel and tourism sector, it is being regarded as a crucial element. This can be attributed from the fact that in UK alone there are more than 180000 hospitality as well as leisure establishments which is employing more than 2 million people. This sector encompasses gamut of other small sectors such as hotels, restaurants, pubs, café and many more. In the UK economy, the hospitality sector is contributing a lot. Furthermore, the hospitality sector is majorly dependent on the confidence of business sentiments and consumers especially after the crisis of Eurozone in Europe (Wood, 2007). In addition to this, this sector is also facing intense pressure to adopt innovation in their products and services and deliver value to the customers. This sector is also witnessing suppressed spending due to the fragility in economy and austerity measures of the UK government which is impacting the growth of the overall sector. Pertaining to this, the current research report will focus on analyzing the hospitality sector, staffing, recent developments, structures and potential trends influencing this sector. The main aim of the report is to understand the trends in contemporary hospitality industry and its future developments.

TASK – 1

Current scale, scope and diversity of hospitality industry

Talking in regards with the hospitality, it is the fastest and largest growing industries in the globe. There are 46000 hotels and guest houses in the UK. Further, there are more than 130000 restaurants and café in the nation which is offering employment opportunities to millions. This sector is quite significant with the annual contribution of around £40billion. In addition to this, the hospitality sector is 4th largest in the year 2011-2012, which is delivering more than 53 billion GBP annually towards the economy in Gross Value Added (Hoque, 2009).

Focusing towards the scope of UK hospitality industry, it is very big and diverse. There are numerous commercial sectors such as fast food outlets, hotels, restaurants, takeaways, pubs, hostels, clubs, motels and many more. On the other hand, there are welfare sector which include hospitals, old age home, halls of residence, prisons, educational institutions etc. In UK, many tourists from various parts of the world visits every year and thus, many big hotels are being found there in order to accommodate large number of tourists. This in turn anticipates the need of large workforce as well. This industry is very diverse because of the innovation, grading system, level of service, future trends, leisure amenities, classification and ownership. There are many hotels which offer standard type of services to the clients (lsen and Roper, 2008). Now, many hotels are offering various other services other than food and accommodation such as swimming pool, internet, sauna bath, gymnasium, Jacuzzi, night clubs, beauty salon, meeting rooms, conference halls etc. this sector is diverse also because of ownership and classification of grading system. Various types of ownership and management style like partnership, public limited, sole trader, private limited companies. Moreover, the hotels are being graded according to their level of service being offered to their clients.

Starwood hotel and resort was formed in the year 1991 in Chicago and now they are operating in many parts of the world. In the year 1997, they became the global enterprise by purchasing Westin hotels and resorts. Furthermore, in the year 2009, they came up with the environment strategy which was aimed to conserve water, minimize waste and development of sustainable operations (Starwood Hotels and Resorts, 2018). Starwood hotel and resort and nine different brands i.e. Four points by Sheraton, The Luxury Collection, La Meridian, W, Westin, Element, Aloft, St Regis and Sheraton.

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Organizational structure of different hospitality organizations

Throwing light towards the organizational structure, it explains the relationship amid various people and different departments of the company. The main function of the structure is to offer direction to achieve the objectives as well as to coordinate the activities of the workers. It also helps in defining the roles, communication and relationships. There are mainly three types of organizational structure i.e. hierarchical, functional and matrix structure.

  • Hierarchical– In this type of organizational structure, different types of positions are pre-defined which are formal positions defining the hierarchy of positions of the individual. People have well defined authority and know how work needs to be performed (Baum, 2006). Moreover, the communication system in this type of structure is very effective. There is a certain amount of centralization in the firm which means that decisions and strategies are being defined by the leaders.
  • Functional-This is very common type of structure but it is quite effective as well. The employees and workers are grouped as per their tasks which they are required to carry out. Tasks are being defined in this structure as per the specialization of the employees. It is very simple, which is easy to comprehend. In addition to this, this type of structure helps in increasing the productivity of the firm.
  • Matrix– It is also considered as an important structure, which is the hybrid of divisional and functional structure. In simple words, it is a combination of autocratic and democratic leadership. It is generally used in large organizations where more information is required to be processed (Mei, Dean and White, 1999).

Hierarchical structure is generally followed by five star hotels, as they have different positions such as general manager, hotel manager, assistant manager, sales managers, front office managers, F&B managers, HR and admin etc. On the other hand, functional structure is followed by restaurants and catering services, as they have different functions to perform such as marketing, production, servicing, cutting, purchasing etc. Finally, matrix organizational structure is generally adopted by theme park which is located in different areas.

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Role of hospitality related organizations and professional bodies

  • British Hospitality Association– This professional body is related with the restaurant, catering and hotel companies. It is a private association and is representing these firms from past 100 years. It was developed in the year 1907 and works in five main areas for the development of restaurants, hotels and catering companies such as sustainability, health, employment, economy and intelligent regulation (British Hospitality Association, 2015). The main role is to implement the policies that help in creating new job opportunities, contributing in export earnings and developing a competitive edge for the UK.
  • British Institute of Inn Keeping– It is a professional body that offers advice and support to the hospitality industry. It also helps in promoting professional standards and represents the workers of the hospitality industry.
  • Institute of housekeeping– This association is focused towards the managers and aspiring managers related to the hospitality industry. This professional body works for the development of the industry by rendering support to the managers as well as to those who want to become a good manager. Thus, it is an educational system that supports the students in each and every aspect of hospitality sector all throughout the world (Barrows, Powers and Reynolds, 2012).

TASK – 2

Staffing requirement of different hospitality business

For the purpose of evaluating the staffing requirement of different hospitality business, three different hospitality companies are being taken under consideration i.e. Starwood hotel, fast food outlet and small local B&B.

  • Starwood Hotel– The staffing requirements of fine dining Starwood hotel in UK will include service staff, kitchen staff, restaurant manager, bar staff, head chef, food and beverage manager and many more (Cooper and Hall, 2008). For the kitchen staff variety of skills is being needed so as to prepare variety of food like cooking, slicing, dicing, skills for cold food, brewing coffee and tea etc. The staff related to bar and restaurant must have good communication and inter-personal skills plus a smart outlook to satisfy the guests.
  • A fast food outlet– The staffing requirement for a fast food outlet such as McDonald, Pizza Hut and Burger King of UK will comprise restaurant general manager, delivery team, team members and front desk staff. The skill needed by general manager is to assist the operational as well as functional management of the outlet. They help in the development of the store, handle the experience of the guest and carry out activities related to HR.
  • Small local B&B– Small local B&B like Barry house hotel of UK will encompass manpower which will take care of various types of roles like cleaning, basic cooking and greeting guests. Staff members are required to maintain good customer service (Lussier, 2014).

Roles, responsibilities and qualification requirement for hospitality staff

Talking in relation with the Starwood hotel of London, it is a luxurious hotel offering fine dining experience to guest from all over the world. As a personnel assistant, job description for the two posts in Starwood hotel i.e. Communication Manager and Executive Office Coordinator will be discussed.

  • Communication Manager– The main role of the communication manager in the hotel is to promote and manage the brand image of the Starwood hotel on a global level. In this regards, the manager give strategic directions to his team and coordinate towards the brand planning. These managers need a degree level education as well as around 6 years of experience in the communication area (Iqbal, 2011).
  • Executive Office Coordinator– Focusing towards the Executive Office Coordinator, he is a person who is responsible for providing executive assistance and handles all the duties in regards with the administration. In addition to this, he is also responsible for managing the executive office for the purpose of creating a best experience for the valuable guests. For this level, an applicant is required to have a two year degree course as well as more than 2 years of experience in the same field (Barron, 2007).

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CONCLUSION

Consequently, from the above research it can be said that the hospitality sector is contributing significantly in the growth of the UK economy. Because of this, the relevance of this sector is increased in past few years. Even though there are few issues being faced by the hospitality sector due to economic recession in UK, this sector is warming up eventually to new round of development as well as growth.

REFERENCES

  • Barron, P., Maxwell, G., Broadbridge, A. and Ogden, S., 2007. Career in Hospitality Management: Generation Y’s Experiences and Perceptions. Journal of Hospitality and Tourism Management, 14(2), pp.119-128.
  • Barrows, C.W., Powers, T. and Reynolds, D., 2012. Introduction to the Hospitality Industry. 8thed. Hoboken, New Jersey: John Wiley & Sons.
  • Baum, T., 2006. Unskilled work and the hospitality industry: myth or reality? International Journal of Hospitality Management, 15(3), pp.207-209.
  • Cooper, C. and Hall, C.M., 2008. Contemporary Tourism: An International Approach. 1sted. Oxford, UK: Elsevier Ltd.
  • Hoque, K., 2009. Human resource management and performance in the UK hotel industry. British Journal of Industrial Relations, 37(3), pp.419-443.
  • Iqbal, T., 2011. The impact of leadership styles on organizational effectiveness. GRIN Verlag.
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