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L/601/1788: Challenges and Limitation in Hospitality Industry

L/601/1788 The Contemporary Hospitality Industry

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


Answer

Executive Summary

The contemporary hospitality industry is growing rapidly. Therefore, the different structure, scale, division have been fostered over the study. This industry is provided with full scope of employment in different types of criteria. Therefore, the integrity of this organisation is accompanied with a multiple layers and structures. The relative people, their role and responsibilities are the subject of this topic. The purpose of the study is to depict the distinctive challenges associated with this organisation. Therefore, the discussion of the different topics shed light on the challenges and limitation related to this industry and shows the way of mitigating the constraints. 

Introduction:

The fastest growing hospitality business in the society is the contemporary hospitality. It provides a vivid range as well as category in the same services industry. It is accompanied with a number of services with a huge volume and serves as entertainment in the leisure period. However, this type of income is popularly known as disposable income. This industry is accompanied with restaurants, banquet halls, and number of amusement parks or cruise lines. The tourism industry is enlarging day by day. Along with the industrial benefit and economy of the relative country, this industry can provide a number of jobs to the people of different ages and skills. The employment includes skilled members in managerial posts, unskilled members in staff level as stewards in hotel, dish washers in hotel or restaurant or the delivery boy. This variety of job reduced the unemployment ration in different countries too. Therefore, a varied detail regarding the current scale and integrity of this industry along with the future impact has been analysed in this study.

Task A: Report on the Hospitality Industry

a. The Scale along with scope as well as diversity in hospitality sector:

With gradual improvement of this industry the number of hotels and other relative organisations are also growing in an uncountable number. As this industry is associated with a multiple group and a number of people, a proper maintenance is very much in need (Gustavo, 2013).

Scale: This industry is provided with a varied number of organisations. The growing ratio of hotels and other hospitality organisations are significance of that. UK is remarkably benefited in the flourishing integration of this industry. However, a recent survey proves that moreover forty-six thousand hotels along with guest houses have been established in UK. This has emerged as the most important sector of economy in United States too (Radojevicet al. 2015). The UK industry is accompanied with a more that 127,000 different type of hospitality oriented organisations. The approximate volume of workforce inclined in this industry in different level is supposed to be 1.6 million. In respect with the elevation of different organisational sectors, this industry is the fastest growing among all. The UK industry is incorporated of providing 2,106,600 jobs in sector of leisure, travel and tourism in a year. Based on this elevation, the UK industry is regarded to be the 5th largest industry of world.

Scope: A variety of people work in this industry. However, existing in this industry for long time is very challenging. To create an incredible identity a deliberate nature is very essential. This industry is accompanied with a number of jobs. There are fourteen different industries within hospitality and for UK hotels and restaurant industry is very profitable. In multiple sectors it provides a scope of recruiting employees with attributing skills, or of unskilled category (Mok et al. 2013). Therefore, people of every stage find scope of earning their means from this industry. 

Diversity: However, this industry is versatile and huge; it is bestowed with a huge diversity in respect with the services and products it provide. The three main products that are offered by different hospitality industries are food, beverage and accommodation (Benavides-Velasco et al. 2014). The diversity comes in the delivery of service and products in regard of the quality. The variety of food not always matches the choice and criteria of people coming from different culture and habit. In this respect the diversity of food gets related with the industry (Jones et al. 2016). Every single organisation is occupied with diversity in their offered food category or services. As for KFC, different types of preparation with varied types and taste is offered and getting launched day by day keeping note on the diversity of choices of people. In kind of beverages too it has a huge variety. In regard with the different aspect of people and their choices, accommodation variety is also changing in rapid rate. The innumerable guest houses, banquet halls, cruise lines or hotels are prove of that growing diversity.

b. Structures of different hospitality related organisations:

The structures of this industrial organisation can be segregated as tall organization, flat organization, and matrix organization (Bharwani and Jauhari, 2013). The different types of the organisations depend on the different number of people and the layers that it is occupied with. In case of tall industry, it is consisted of a varied number of layers. The flat organizations are in respect to has multiple layers (Knowles and Egan, 2013). On the other hand, tall organisations have its own structure.  It is important to note that, different hospitality organisations like pubs, restaurants and hotels follow different structures as per the suitability. The discrimination of the different structures in respect with the roles and functions are listed below.

Tall Organisations: These types of organisations are in deal with a large number of employees in accomplishing the operational tasks. There are varied layers and levels in job structure too. Moreover, it consists of a narrow and specific control in accordance with its business (Wang, 2014). 

Flat organisations: These types of organisations are in opposite direction to that of the tall organisations. In respect with the number of employees, these type of organisation are accommodated with a fewer number of people. Moreover, the internal type is intended to be controlled with a wider span of control.

Matrix Organisations: These types of organisations are intended to accumulate employees from different directions so that it might keep focus on the destined project. However, this type is indulged with opportunities for the employees to work in part-time manner. This is widely helpful for the students (Wang, 2014). The tasks performance in this type of organisation is managed in a daily allocation system; therefore it gets performed in a daily basis.

The operational type and association depends entirely on the different sectors. As for the restaurants, the necessity of a large number of employees is inevitable. The segmentation of the employees will also be at different criteria (Jones et al. 2016). Thus, tall structure of organisational type is followed over here. The structural type and devices are also dependent on the demand and association of people based on the location. The types of structures ate also followed in operational jobs of the managers, assistant managers or HR executives. In case of amusement parks, the structural devices are different. The associating management is devised here in different form. The modes of duties are also devised in accordance with the specific criteria preferred by people (Jones et al. 2016)


c. Different roles and responsibilities and professional bodies in hospitality industry:

The segmentation of roles and responsibilities for the employees are categorised in accordance to number of employees. The specific roles are bestowed with different responsibilities in respect with the required criteria of the governing body. The role of management is discriminated based on the professional body and availability of employee. There are different professional bodies governed with this industry. The roles of the governing bodies are also segregated in different structures. The professional bodies associated with these organisations are as mentioned below:

  • People 1st
  • British Hospitality Association
  • Institute of hospitality
  • British Institute of Innkeepers and 
  • Springboard UK

Role of People 1stThe role of this sector is regarded to be the sector skill council for the management of hospitality. This professional body is associated with the transportation system of passengers in terms of travel and tourism. This organisation works effortless in improvising the skill and to transform those in selective areas. The role of this sector is associated with the enhancement of leadership approach. The resistant performance of this association is elaborated with services of customer and skills of technology use. The role of this professional body is indulged in ensuring the public funds so that it might fulfil the requirements of the employers. 

d. Required number for staffs for the purpose of different roles:

The varied type of staffing are in regards with the dimension and level of business. The large scale organisations require a huge volume of staffs for performing tasks in different levels. As in Starbucks, the operational division is vivid therefore; a large number of employees are in need in specific posts. The employment initiation follows a different structure. Thus, this big organisation needs people in its management, staff level, and people for food production, as staffs of stewards. Contradictorily a road side organisation serving only food and drink needs 10-15 employees for performing the functions. The division of structure follows an incline segmentation of industrial level (Jones et al. 2014). The popularity is also impactful in this regard. A successful organisation might be accommodated with a crowd of people. To serve the huge mob with food, drink, accommodation and complied service, organisation needs a huge number of people. The segmentation of staffs in accordance with the role and responsibility undermines the below mentioned divisions:

  • Functional specialists
  • Operational members
  • Management including senior and junior level
  • Supervisors
  • Skilled or unskilled staffs

The local home delivery associations, who provide food only in the nearby locations at mid-day time and night, will be enough to have 20-25 employees for their service. In case of the popular hotel like Bellagio, it requires a huge number of employees in a regular basis (Jones et al. 2014). There is an alternative shifting in peruse of the fulfilment of tasks. Moreover this organisation seems to employ an additional number of employees in the peak-time in a temporary basis. The skilled employees get a direct employment for the job however the semi-skilled labours are appointed with the divisional tasks of accompanying as lounge waiter, dish washer. There is a segmentation of apparentness too: that is associated with earning salary along with attaining the qualification too.

e. Division in roles, responsibilities, and qualification based on requirement:

The different types of roles are associated with this industry. The segmentations in job roles are: Managers, super visors and craft or operative. The criteria of jobs are associated with the requirement of qualifications. The role of management is indulged with the specification of diploma degree. Fine communication skill and technical skill must be inclined with this job role. The differentiations of this job role in comparison to the other posts differ in sense of technical skill and managing credibility (Chon, 2013). There might be a differentiation in handling situation while performing operational duties. The accompaniment of the managers in this regard needs to be indulged with proper skill and flexibility.

Staffing in hospitality sector

Figure 1: Staffing in hospitality sector

(Source: Kwon et al. 2013)

On the other hand, the roles of supervisor are in need of only a graduation degree. However, any certification from the other authentic organisation or of any courses must be taken as additional value in this industry. The handling of situation with proper attitude and interpersonal skill is inevitable in this regard. Qualification that is considered in this industry are the affiliation EDI or the CTH. The degrees of BTECH and ATHE are treated to be very important in this industry for the managerial posts. The roles of this type are associated with the governing availability of services accordingly.

The role of the Crafts or the associates are categorised under the unskilled division (Chon, 2013). The roles of them are associated to the service and delivery. This criterion does not need any specific qualification. Therefore no hierarchy of job role is associated in the roles. These roles are attributed with proper service of the required services. The taking care of head and healthy food service is extremely required in this role. Therefore, the management is indulged with specific responsibilities to make it accomplished with the divisional roles bestowed with responsibilities.

f. Current image of this industry:

For understanding the current image of the hospitality industry of the UK, it is mandatory to evaluate the key player in the industry. One of the key players of the hospitality based industry of the UK is the Boutique hotels, which is one of the medium ranged hotels in the UK. By comparing the benchmarking strategy of different hotel located in the UK with the different hotel located in the other country of the Europe, it can be said that the UK has the most diverse hospitality sector (Ryan, 2015). It is seen with the development of the hospitality industry in different city of the UK have increased the price of accommodation. It is seen that, among different city, London which is one of the leading key player in the UK have established a rule that they will increase the rent of the room by 6% in every year basis. It has been observed that in all over the UK, the average price of the accommodation is increases by an average of 4%, so regarding this any traveller who would visit different tourist’s places in Britain will pay an extra of 8 euro per night. Among different tourism based industry, hospitality based industry is one of the industry which attract the centre spotlight (Boella and Goss-Turner, 2013). 

Statistics regarding the contribution of travel industry on the GDP of UK

Figure 2: Statistics regarding the contribution of travel industry on the GDP of UK

(Source: Statista.com, 2016)

It has been observed from a current statistics that the contribution of the travel industry of the UK on the GDP of the country is only 4%. From the above mentioned image it can be clearly understood that the contribution of the travel sector in the year of 2010 was 6.9%, but it is decreased by 2.9% in the year of 2016 (Statista.com, 2016). The main reason behind that are the attractive and low cost service facilities provided by other country. However, in the recent times, the travel industry of the UK is still exploring it by establishing more amusement park, restaurant etcetera. Therefore, it can be estimated that the industry will get more growth in their near future but it is seen that, in the year of 2026 the contribution of the tourism sector will be only 3%. 


Task B: Reviewing different present development in the modern hospitality based organisation

a) Different types of issues regarding the management, operational and legislative indifferent modern hospitality based organisation

In the present hospitality based organisation the growth of the firm is presently affected by several issues such as operational, management and legislative. Any contemporary hospitality based organisation that is currently operating in UK may face different types of issues regarding the operation. For maintaining the operation in the UK, hospitality based organisation is facing different operational issues such as issues regarding the flexible working, recruitment and selection, productivity level, benchmarking process in organisation, socio-cultural issues, competency of the workforce etcetera. It is seen that any contemporary hospitality based organisation generally hires people from different cultural background so they can achieve the best talent in organisation and achieve competitive advantage by providing effective services to the customers (Halland Gössling, 2013). However, hiring people from different background may create the socio cultural problem. In the present time different technological development affect the hospitality sector in the UK because customers wants more facilities such as free Wi-Fi, online booking facilities etcetera from the organisation they receive service. 

Alongwith the operational issues, hospitality based organisation may face some managerial issues such as ineffective performance management, lack of concentration to make effective relationship with the providers of training, issues regarding green environment, ineffective implementation of the safety regarding food, development of effective policy, ineffective responses to the niche market etcetera. It is seen that most of the hospitality organisations in the UK does not provide attractive remuneration and incentive to the providers who provide training to the employees. Along with that, it is also observed that the management do not maintain an effective relationship with the training providers that lead to huge dissatisfaction among them (Chon, 2013). For this reason, there is huge possibility that the effective skills may not be generated among the employee due to the training.

The contemporary hospitality based organisation also faces some of the regulation and legislation based issues. Different issues such as non-compliance with different legislation regarding minimum wages, directive of the working time, licensing, employment visas, discrimination may create huge problem in the hospitality based organisation. It is seen that there are several laws and legislation in the UK regarding the discrimination. According to the Equality act 2010, all of the organisations are liable to provide equal opportunities to the employees. However, there is some organisation that might discriminate their employee, for which they might be sued by the employees.  Apart from that, the Equality Act bounds every firm not to discriminate female employees in any terms from wages to respect and position in the company.  Failing in complying with this aspect might hamper the overall image of a firm whereas can lead to financial loss. 

b) Predicting different trend regarding the future and different development in hospitality based organisation

Different trends affect the industry in different ways. The applied competition from different fields in different country mainly in UK is generating different types of trend in the market that is even more competitive as well as competitive in nature. It is seen that the forceful note on different service is one of the endeavouring spirit that may slowed down different types of the essential growth of the hospitality based industry in the fast increasing pace (Ryan, 2015). It can be said that the consciousness, which is involved with different customers over the particular quality and the value is also one of the very important factor in this hospitality based organisation. In order to avoid any kind of challenges in the hospitality industry, it is very much important for them to follow the legislations and law with more effectiveness. If any hospitality based organisation will not be able to follow all of the legislation then they may be faced with some illegal issues. The present hospitality based industry is facing huge amount of problem due to the faster level of changes in the technology. One of the problems is related with securing privacy of their customers and maintaining confidentiality. Thus, new technological adoptions seem to be evident. Therefore, it became difficult for most of the hospitality based organisation to follow the trend regarding the implementation of rapid technological change in the organisation.

High investment from investors has helped the hospitality sector in UK to have desired growth. An example is PAUL restaurants where there were only 18,785 restaurants in 2013. In the year of 2016, it has been observed that the number of restaurant became the 19952 that signifies the optimum level of demand in this industry. One of the related terms is also applicable for the Starbucks. Along with the number of restaurant, the location is also increases by the 23768 numbers, the main reason behind that is inevitable demand in this hospitality based industry since the 1971 to the present time.

c) UK hospitality industry trends and development: 

The hospitality based industry provides different types of scope to the students whose subject in masters is the hotel management, business, and the tourism management.  This is the situation in every country as economical growth of a country is also related with it. In the recent times, tourists are more likely to enjoy the adventure and excitements in the present days by conducting different tour. The effective growth of the tourism industry helps them to enjoy more. Implementation of the technological advancements in the hospitality based industry can generate a better revenue and growth. 

UK hospitality sector is thus having growth due to the improvement in customer service areas and customer satisfaction. It is observed by the government of the US that the percentage of annual growth related ratio that is invested for their international level is the 4%. It is also observed that the Chinese spends more than the $1000 in a single day for the expenses regarding the travel (Hall and Gössling, 2013). It is seen in the present time, that the residents of the UK are increasing their visit to the abroad by the 2.2% and they spent 2.1 million euro in a year for visiting abroad (Ons.gov.uk, 2016). In this context, it is a threat for the hospitality sector to sustain the present growth.  Continuation of the situation might UK hospitality sector to fall its growth by more than 15% within 2030. It means, new measures are required to sustain this growth. 

Conclusion:

The current situation of different hospitality organisations are helping the economy to grow whereas new means of technological growth are evident. Therefore, it is seen that the change that is mainly attempted in the global platform generates different effective platform to facilitate the entertainment during the leisure period. It is seen from the growth strategy of the hospitality based industry that the country is continuously developing different premises so they can provide more opportunity to the traveller for spending their leisure time in more adventurous way. It is seen that number of different restaurant, amusement park, and banquet hall are increasing in the different location of any community. For achieving more growth of this industry, it is important for this industry to follow all of the laws and regulations so an effective and sustainable business can be achieved.

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