Impact Of Hospitality Industry On Society

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Question :

 Assignment Brief

Programme: BTEC Higher National Diploma in Hospitality Management

Unit Title and Number:The Contemporary Hospitality Industry (Unit 1)

The hospitality industry consists of companies within the food services, accommodations, recreation, and entertainment sectors. It is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. The hospitality industry is growing fast, but it is also changing. Some people say that you have only to look at the USA to see where the British hospitality industry is going: fast food and lots of it, theme parks and themed restaurants, so many eating places that dining out becomes as common as dining in, and an emphasis on customer service.

Using relevant information, theories and examples, you need to a formal report which will describe the current state of the hospitality industry then develop an analysis of trends affecting the industry. It would be good to use current examples from the hospitality related organisations (i.e. hotels, resorts, cruise liners, time-shares etc.) to support your work. 

There are four learning outcomes to this unit:

1. Understand the current structure of the hospitality industry

2. Understand staffing in the hospitality industry

3. Understand recent developments affecting hospitality

4. Be able to recognise potential trends and developments in hospitality

Task A Research report describing the hospitality industry

Carry out research into the Contemporary Hospitality Industry. Using your research, produce a written report of your findings which should include:

  1. An analysis of the structure of the current scale, scope and diversity of the hospitality industry (AC 1.1)
  2. A discussion of the organisational structure of different hospitality industries (AC 1.2)
  3. An assessment of the role of hospitality related organisations and professional bodies in the hospitality industry (AC. 1.3)
  4. An assessment of the staffing requirements of different hospitality industries (AC 2.1)
  5. A discussion of the roles, responsibilities and qualification requirements of hospitality staff (AC 2.2)
  6. An discussion of the current image of the industry (AC. 3.2)

Word count: for task A. 2000-2500 words

Task B Review of recent development 

Provide a written account demonstrating your understanding of the changes affecting the Contemporary Hospitality Industry. It should provide :

a)An analysis of operational, managerial and legislative issues

resulting from recent developments affecting the hospitality industry (AC. 3.1)

b)A justification of predicted future trends and developments in hospitality (AC  4.1)

c)An impact analysis for the predicted trends and developments (AC 4.2)

Word count: for task B. 1000-1500 words

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Answer :


The feature of the hospitality industry is greatly related to the services for the customers through a number of ways. People are generally entertained and spend their free times in an expected and enjoyable process. Therefore, the main focus of the organisations related to the hospitality industry have their focus to satisfy the demand and requirements of the services users in order to achieve a great amount of revenue as well as competitive advantage in the global market. It can be observed that the managements of the hospitality industries are basically professional regarding the maintenance of their profitability. The restaurants, pubs, hotels, travel and tourism sectors are under this category of services. In this report, the standard of the structural as well as functional activities of one of the most popular hotels in the UK, Hilton has been presented. However, as the range of hospitality industry is vast, this report focuses on identifying their structures, management structure, the impact the hospitality industry puts on the society by taking help of different organisations operating in this industry. 

Task A:

Research report and description of hospitality industry

a) Analysis of the structure and current scale, scope along with its diversity in the hospitality industry: (AC1.1)

Operating as one of the popular and oldest businesses in the world, the managements of the hospitality industry have their focus to serve their customers during their leisure time according to demands. As stated by Bharwani and Jauhari(2013), through the effective and satisfactory services of the organisations, a mutual understanding is developed between the managements and customers. Among the most renowned hospitality related organisations, there are restaurants, pubs, hotels as well as bars and nightclubs. Although the internal structures and dimension of functional features differ from one another, their prime concern is to proceed in the competitive marketing scenario through satisfying the requirements of the customers. 

In the current scenario, the scale of the organisational structures is mostly associated with their economic value. It has been observed by Joneset al. (2013) that due to the changes in the lifestyle of people, the significance of this sector has gradually improved and therefore, it has become one of the largest bases of a huge number of employees working in this sector.Even, around 2 million persons who are associated with this industry also enjoy the facilities provided by these companies. Due to the demand, it has been noticed that the number of hotels and catering services in the UK in 2009 has increased nearly 2.3% than 2008 (, 2016).  In the UK, the structural scale of the Hilton hotel, chosen as an example show that it has reached so far that it has been supporting the economic activities of the UK. On the other hand, the tourists are also depended on these hotels regarding the availability of foods and drinks.

There are around 14 sub industries under the category of hospitality industry, such as hotels, tourist services, food management, clubs, and restaurants and so on. Even, the number of these organisations has rapidly been developing with the time in the UK context with the growing UK economy. 

Authentic statistics show that 35% of the service users of Hotel Industry in UK are satisfied with the services provided by this company whereas only 15% of them are dissatisfied. There are also 30% people who are highly satisfied and only 7.5% who are highly dissatisfied with the services of this company. 12.5% of them remained neutral. This shows the fact that majority of the service users are satisfied with the services provided by this hotel. (, 2016).

Relative diversity can also be noticed in terms of delivering service or providing products by the distinctive organisations related to this industry. Basically, three types of products can be provided by the management of this industry, such as, foods, accommodation and beverage. It can be observed in many restaurants that although there is a prime product offered by that organisation, however, a variety of other associate products is also there to attract the attention of the customers. A closer observation of the hospitality industry shows that there are plenty of changes taking place in the chosen industry. New modes of time spending, food and requirement are among mentionable few. The use of new technology in the rooms, decoration is drawing serious distinctions. Range of beverages is also available in the catering services, pubs along with the hotels (Kandampully et al. 2015). Even, the system regarding the accommodation of the hotels and guest houses are also designed as per the preferences of the customers in order to provide them necessary comfort.

b) Structure of the organisational related to different hospitality industries: (AC1.2)

Organisational structure refers to the internal design and pattern of the employee retention as well as the process of communication among the employees and between the employees and management. Moket al. (2013) has stated that an organisation having a systematic and perfect work division among the associates possesses an effective structural feature.

According to the internal characteristics of the hospitality related organisations, there are mainly three different types of structures of organisations, including tall and flat organisation.

Structure of the hospitality industries

Figure 2: Structure of the hospitality industries

(Source: Gin Choiet al. 2013, p.420)

As suggested from the name, tall organisations have their multiple layers of structural units. In relation to the hospitality industry, it can be stated that the functional segregation among the employees of this type of organisation is quite prominent. They can able to offer a huge range of services to the people according to their needs. Therefore, the control span of the organisations belonging to this category is weaker than that of the flat organisations. According to Gin Choiet al. (2013), as there are countable layers within the structural setting of flat organisations, the control span of the management is enough stern and strict. Therefore, the major difference between the structural appearances of tall and flat organisations can be noticed in their internal setting and management. 

For instance, the Hilton Hotel in UK is a well recognised name and a minute observation show that the organization has adapted the tall organizational structure for itself. It is found that in order to connect the entire workforce, which is divided into various smaller parts in each department; the organizational management conveys its orders through a hierarchical structure. As the chosen hotel has fewer employees, it has been able to secure good amount of profit by using the tall organizational structure. It is worth the mention the hotel has not developed unnecessary layers of order circulation, yet it has been able to coordinate all the departments with ease.  

c. Roles and professional bodies of organisations in the hospitality industry: (AC 1.3) 

Different responsibility is bestowed on different roles of the related organisations in this industry. Thus, the scale of the particular organisation is very much important in this respect. This factor also controls the number of employees of the specific organisations. The specific responsibility is also determined based on the requirement of the organisation. The requirement gets set on the estimated purpose and ambition of the organisation. That is why, the segregation in the roles of the employees are needed to fulfil the purpose inevitably. The distinctive posts in the roles include management, supervisor, craft as well as operative. The discrimination in the job roles is based on requirement and specific demand of organization in different hospitality that the organizations provide. The role of management then ensures the profit margin with inclined maintenance. This role is attributed with the responsibility linked with the ways of taking care of the cost. 

This situation has been controlled by adopting right procedure of the effective control system. This system evokes a proper analysis of its sales(Boella and Goss-Turner, 2013). The procedure is further accompanied with a keen strategic analysis and its implementation proper accordingly. Furthermore, an effective analysis along with complied consultation is also needed to the improvisation of the staffing levels. The system of consultation is regardless of being the standard of justifying level of the staffs. Management is indulged to hold appraisals of regular performance of the staffs. This is keenly associated with identification of credibility of the associating employees. Furthermore, this analysis help identify the necessity of training among the employees and in need they provide proper training for them too.

 Food and beverage industry and specific role

Figure 3: Food and beverage industry and specific role

(Sources: Boella and Goss-Turner, 2013, p.451)

The discrimination of roles has been initiated to impose a control over the operations of regulated organisation. Thus, the supervisor takes care of every regular operation for the betterment of the organisation. In this aspect, the leadership approach is integral in delivering essence, therefore, a proper leadership approach should be at estimation of the organisation to keep up team motivation and improvisation deliberately (Gin Choi et al. 2013). Self-confidence in the specific rob role is inevitable to foster credibility in terms of resolving conflict. In handling with the situations of conflict, the responsible persons that are the supervisors in this industry are needed to play role with credibility. Same goes for the role of crafts or operatives too. They initially take care of the planned schedules that are the availability and proper execution of plan as well. Different divisions of jobs are there including junior staff, senior staff, senior manager, team leader along with the supervisors. These roles and the responsibilities have been devised to help manage all the regulated functions of the organization (Mok et al. 2013). If it is about a large hotel, the roles of the staffs are segregated in accordance with the proper accommodation of the place, food availability or room service. In contradiction, hospitality related to the restaurants is completely different. The destined roles are designed to make sure of the perfect accommodations of the served food and its quality management only. Therefore, the roles as well as the specific responsibility of the roles also differ based on the type of accommodation and purpose of the organizations. However, the required quality is same in every organization that includes honesty, personality, punctuality and efficiency.

d. Assessment on the required of staffs in different organizations of the hospitality industries (AC 2.1)

The staffing types and the number of staffs required in an organization are in inclination with the type of organization. Thus, the discriminations have been shown in respect with the different organizations. In an elevation with a renowned food court, number of employees including management boards, strategic department and the staffs might be 200-250 in one location. If it is about an amusement park, the requirement of 150 staffs at different level would be made. However, the number can also differ based on the demand of that particular organization and the location also. The working experts might be skilled, semi-skilled, and fully skilled or they may be functional specialists only. Whatever it may be; there is demand of all kind of employees in a single organization.

The semi-skilled staffs on the other hand are categorized under the group of services provides accompanied with the services of room service, restaurant receptionist or lounge waiter. On the same manner, the staffs that are unskilled are regardless of being categorized under the services of clerk, banqueting stewards, restaurants dishwashers or security surveillance (Jones et al. 2014).

Usually the apprentices were regularly paid on holidays with the earning of salary.They are in terms to receive a proper training based on the requirement of the position. By this manner, they attempt to gain knowledge and get skilled in the operations that are related to the job. A segregation of the management trainee can also be seen including half or part time staffs.This specification is based on the particular demand and requirement of the place (Jones et al. 2014). This proper division is treated to be a strategy that serves the essence of the industry. Staffingand its types are also controlled as well as negotiated by WAVA. WAVA is that means that it pays a good amount of hospitality work along with the providing opportunities in five distinctive countries including Norway, Spain, America, Italy and Canada.

e) The roles and responsibilities of the employees based on the qualification requirements: (AC 2.2)

In order to run a hospitality business, varied range of employees is deemed necessary. Based on the instances of the most popular hotel around the world, it is seen that employees are needed for lower paid posts like caretakers, waiters, laundry boys, drivers, maintenance staff, electricians, etc. There is also the need of receptionist, manager, management in charge, cooks, evaluator etc. For the lower paid staffs, organizations tend to go for lower pay scales; therefore, they recruit young entrepreneurs. It is worth the mention that for the post of driver candidates are required to have driving licence and ample experience. In non-productive cases, like laundry boy and waiters, candidates with no or less experience are appointed. On the other hand, the higher staffs are always recruited on the basis of their performance and experiences. The productive staffs such as the head cook, electrician, and manager in charge are recruited only when they gather ample experience. Exceptions are made only on the basis of extraordinary performance. Among the various posts existing in the hospitality business, the post of the head cook or chief is of great importance. The reputation is very important, when it comes to hospitality business. As the quality of the food plays a vital role in developing the reputation, chiefs are chosen very carefully. Chiefs are chosen on the scale of their efficacy, productivity, skills and culinary sense. In hotel industry a chief must manage all the helpers in the kitchen to offer maximum productivity and best in class food for the service users. The chiefs also have to manage the standard of the food and its hygiene as well as the taste of the foods in accordance to the local people and the requirement of the customers.       

Travel industry and the structure of staffs

Figure 4: Travel industry and the structure of staffs

(Source: Chon, 2013, p. 110)

There are a couple of posts in which employed persons have to play different roles at different times. In case of the team leader, the leader has to work as the in charge of the group as well as the instructor to the new employees. Sometimes the person have to perform as the work as a substitute in certain scenarios. It is seen that in most of the cases the leader are chosen among the group of the workers. The reason behind choosing a person among experienced workforce is that he or she has the knowledge about the current organization and knows the workers better. However, it is should be kept in mind that, leaders are chosen only when they have the ability o tackle entire teams. The main expectation that organizations lay on the team leaders in the sense of responsibility and dedication.  

f) The current image of this hospitality industry: (AC 3.2)

The current image of this industry is associated with the contribution of the key players in this industry. The Budget hotels, Mid-range hotels or the Boutique hotels are in accompaniment with the UK government. In the Hotel Benchmark Survey, strongest performer in Europe is proved the UK hotel industry. It is experienced to expandthe overall business worldwide. London plays the leading role in this scenario plays London, as it has become successful by raising a 6% increment on average rate of room in a year. Tourism is regarded to be the major export industry in many countries. Hospitality industry and its improvement is the main focal point in those countries (Walters and Airey, 2013). 

Task B:

Recent development of hospitality industry and its review:

a) The operational, managerial and legislative issues affecting this industry: (AC 3.1)

On the operational levels the Hospitality Industries in UK are facing plenty of problems. With the rapidly growing number of super facility Hotels, the expectation of the service users are increasing day by day, resulting in more expanse in the attempt of providing a better service. The extra expense is reducing the profit margin and ultimately proving less profitable. 

The worldwide economic crunch has also affected the managerial standards of the Hospitality Industry in UK. The main function of the managerial segment is being hampered as the efficacy of the organizations has faltered drastically. The lack of ample funds in most cases has resulted in lower number of workforce and lack of skilled workers, therefore, hampering the collective performance of HRMs.  

The implication of the legal bindings by the British Legislature has resulted in a massive re-evaluation of the Hospitality organizations in UK. In order to provide the service users a standard quality of food and enhance the level of the food quality, Food Hygiene Regulation of 2006, has been implementedAs a result all the organizations are adjusting their budget and operational system to meet the set standards. Many organizations have failed to meet the standards as the budget and the profit margin being very limited. 

b) The predicted future trends along with its developments and a proper justification of the explanation: (AC 4.1)

Like this industry is changing, following this growth many trends are also raising day by day to affect the integrity. Some distinctive trends are gradually affecting the hospitality industry, these includes the increasing competition in almost every country specifically in the UK. The emerging competition is complying with it even more competition and complication. Emphasis on quality of service is to slow down the growth of this industry (Hall and Gössling, 2013). The rate at which number of hotels is increasing, consciousness of the customers is also growing on. Consciousness is regarding the value and the maintenance of quality. It is treated as an important factor. Maintenance of law is very important in this industry; every organization is liable to abide by the particular law and legislation that the individual organization is regulated with. Violation of any rule will be treated offence and hence will be resulting in the direct extinction. These rapid changes in conversion with the growth of technology along are in contributory essence with this industry. 

c) Impact analysis towards the prediction of its trends and developments: (AC 4.2)

This industry is provided with a wide scope for the students of business or tourism. The opportunity is provided towards the students of managements as well as hotel management also. This industry offers with it limitless types of applications and job with verities roles and responsibilities. This predictable future trend is remarkable towards the enhancement of economy in the related countries. Furthermore, this countless endeavour has initiated other corpse of developmental factors too. These are possible in order to attract the tourists from different countries. People accommodated with leisure and hand full of money is applied with multiple choices to enjoy their best. This is confronted with the rapid as well as integrated growth. This continual development has given birth to the renovation and invention of a number of means (Hall and Gössling, 2013).

The growth of this industry is remarkable and fundamentally the standards of services are also getting modified. The generation of new concepts along with the advancement of technology is in corresponding essence and improving gradually. In this respect, the US government too has been noticed to have significant projects. The benefit of this project is remarkable consisted with a high valued income. This benefit is 4% of the total growth rate of a year in respect with the international travel. The remarkable growth has also been generated in China as they are involved on a large amount of expenditure in hospitality industry. On a single day this country is observed to spend £1000 (Hall and Gössling, 2013).This is termed to be refined in a changing integration of the world attributed with versatile adoptively.


The hospitality industry has made a revolution over the world with significant innovation and adoptive changes to the world. This intending implementation and renovation has laid remarkable note on the contemporary society. This intending change is accepted globally. As it works as the recreation and entertainment to serve refreshment in leisure period, it is entertained by contribution of people of a large scale. This industry is gradually enlarging accumulating with a number of organisations. The concept is now intending towards inhabitation of new restaurants along with banquet halls. The innovation of the cruise lines as well as the improvised technical advancement in amusement parks too has a different dimension in society. Internal rules and regulations of this industry are set with the specific laws and legislations in operational structures. Further, it has also become clear that in case of hospitality industry, it is important for organisations operating in this industry to focus on recruiting high quality and highly skilled staffs so that they can provide high quality customer service. Another reason for the selection of skilled staffs is that the base of hospitality industry lies in providing quality service to the customers.