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Contemporary Issues In Hospitality

Sample Report on Contemporary Issues In Hospitality

Introduction to Contemporary Issues In Hospitality

The hospitality sector is much wider than any other industry. The majority of business in this industry are niches and complete focus on satisfaction of customers plus meeting their leisure needs instead of only basic ones. The most defining characteristics of this sector is that it concentrate on satisfaction of visitors and thus the hospitality organizations entirely relies on clients being happy with their services. One more defining characteristics of the particular sector is that it reliance on leisure time plus disposable income. Many people think that hospitality industry comprise of hotels alone but actually hotels are just a single sector of it. Several types of transportation that cater needs of tourists are also considered as an important part of this business. In this regards, the report here is briefing about hospitality industry structure along with its scale, diversity and scope. Moreover, different staffing needs in the specific sector is inculcating in the paper together with its current legislative, managerial and operational issues. At the end, the discussion is summarizing by signifying potential trends and developments in the hospitality industry of UK.

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Task 1

1.1 Current scale, scope and diversity of the hospitality industry

Scope

The hospitality sector has around 1, 27, 000 separate businesses. The industry makes total turnover of £70,000 million by employing 1.6 million of human resources. Thus, the particular industry is considered as third biggest as well as diverse sector that is offering employment throughout the globe. Moreover, this sector is having huge scope in the UK. It comprise different commercial sector like restaurants, food outlets, hostels, takeaways, clubs, motels, pubs, etc. together with sectors related to welfare like educational institutions, residence halls, hospitals, old age homes, prisons, etc. Each year a large rush of tourists comes to this country for seeing its beauty and enjoying several theme based parks along with best dinning at boutique hotels. These hotels provide accommodation to huge numbers of tourists on regular basis, hence required manpower for undertaking different operations.

Scale

Besides above, the hospitality industry is diverse on the basis of its classification, leisure facilities, innovation, ownership, future trends, grading system, service level, etc. There are different types of hotel in UK that provides standard services to visitors. Furthermore, the lodges not only offer food and accommodation but provides various additional facilities like Wi-Fi, sauna bath, gym, salons, night clubs, swimming pool as well as business conference and meeting rooms. Also, the ownership and management styles are of different types like private limited, public limited, sole owner, partnership, etc.

Diversity

In addition to above, the hospitality industry based on its diversity offers several services for different individual types throughout the globe. According to customer’s needs, hotels have many types of bedrooms, such as luxury suits, deluxe and shared rooms. Thus, a series of services related to accommodation are provided by the specific sector like party halls, conference rooms, etc. that served in similar manner as bedrooms for giving best comfort to customers.

1.2 Organisational structure of different hospitality industries

The following are structure followed by different hospitality sectors:

Flat

This is sometimes also referred to organic and are said to have imperceptible chain of command, extensive delegation of responsibility and improved communication. Hospitality organizations adopting this structure often operate better in dynamic environment of business, as they able to quickly respond to trading shifts.

Tall

The taller companies have opposite features. Such structure type is also referred to mechanistic structure. In the particular structure there is clearer chain of command, limited empowerment of employment and slower managerial decision making. The hospitality firms adopting this structure are less likely to quickly respond to environment. For instance, hotels chains with 140 or more bedrooms follow tall structure.

Matrix

In this structure type, an organization is managed by a series of dual-reporting relations rather than traditional structure of linear management. In contrast to other structure of company that arranges employees and managers by product or function, matrix management combines product and functional department in a system of dual authority. In simple term, matrix configuration might be known as cross-functional team of work that brings together employees who report to distinct parts of organization for completing a specific task or project.

If one consider the Marriott International, an American diversified company of hospitality sector that franchises and manages a wide portfolio of hotels as well as its related facilities of lodging. The hotel adopts flat structure, in which department manager give order to employees of that particular department, like General Manager have responsibility and authority to control all departments. In this structure, the managerial executives at top level required to be enough wise for comprehending that changes are in trend and business is dynamic. These managers are capable to make fast decisions for the growth of business according to changing need of customers and market.

1.3 Role of hospitality related organisations and professional bodies in the hospitality industry

The professional bodies helps individuals and organizations operating in hospitality sector for developing their skills or abilities to perform. These entities can become a member of professional bodies for attaining benefits of training sessions, mentoring plus networking opportunity. The below is the explanation of a well-known hospitality association of UK:

British Hospitality Association

It runs varied campaigns to promote interest of hospitality firms in suggesting government of UK on the matters of reduction in red tape. British hospitality association campaigns like driving competitiveness to lessen VAT of tourism, providing access to UK visa are some mode of lobbying Government and Parliament members for the benefits of industry. Additionally, BHA role is to share experience and knowledge with corporate members by interacting with them directly. Furthermore, it conducts campaigns like Responsible Hospitality for supporting members to get novel standards in waste reduction and food labelling, Hospitality Bellwether to support members in getting all necessary information and Inspiring Next Generation to develop novel jobs.

Task 2

2.1 Operational, managerial and legislative issues resulting from recent developments affecting the hospitality industry

Operational issues

  • Increase in energy supplies demand globally have led to escalation of energy costs. Due to heavy demand of customer services in hospitality services, there is also increase in consumption of hospitality services and it ultimately leads to increase in cost of energy such as light, water and non-renewable sources of energy
  • Social trends, such as increase in travel, discretionary spending and consumerism have result in more discerning buyers. Hence, service provider are becoming more sophisticated to satisfy rising leisure time demand in the hospitality.
  • Increasing competition has resulted in more options of hospitality and ultimately lead to low ratio of occupancy. It has also outcome in unique valuable services like accommodation packages including airport transfer, breakfast or even sightseeing.
  • Increasing expectations of employees like flexible schedules of working plus growth in unions. It has made direct impact on the management of hospitality organizations as demand of employee union pressurise the organize to fulfil employee needs and demands.
  • Visitors rising concern regarding safety and protection from vulnerable tourism. It has make impact on the services of the hotel has access demand from guest and customers makes impact on the current services of hotel.

Managerial Issues

  • The facilities required by customers varied from one another like from facilities of recreation to themed accommodation, hence facilitating such services for customers in one time are getting costly for organizations;
  • Because of increasing concentration of certain needs of niche customers, segmentation of market is increasing. Also, number of existing brand for single segment is increasing competition and therefore focus of companies are shifting to cost cutting measures and profitability.
  • Also, globalization has significantly affected the traveller’s frequency both across and within the nations. The industry should be managed according to global trends for remaining competitive as well as its influences in many ways like services, food, staffing and amenities.

2.2 Current image of the industry

The coming time is expected to be a brighter and better for the hospitality corporations. The landscape is quickly evolving because content marketing replaces ad campaigns, travellers are more spending on valuable getaways and mergers of mobile with social networks. In spite of recent challenging and contentious economic climate, one can see that the motivation for revival of travelling is the emotional link in between quality of life and vacations. Leisure travellers are concerning less to recent economic hardships and adopting behaviour that confirming their emerging lifestyles. Economical staycations and several other getaways of money saving appeared in the middle of recession has faded. Also, it is expected a boost in spending of travel due to changed belief in experiences of quality.

Recently, it has been highlighted in the People 1st of Nation 2013 report that hospitality sector will required to recruit around 660,200 individuals by the year 2020. However, at present unemployment in UK has increased to 2.52 million as well as the industry has thousands unfilled vacancies. Furthermore, the recent international study by Organization of Economic Development and Co-operation has identified that in UK people between the ages of 15 to 29 spend average 2.3 years as unemployed. Additionally, at their recent Tourism Summit the British Hospitality Association set out main objective of creating 300,000 new jobs by the period 2020 for tackling shortage of skills and unemployment.

Additionally, at present the industry is facing two challenges. First, the revolution of ecommerce in 90s has altered the manner in which customers act and think while making decisions related to purchasing. It gave people a platform and voice to express their dislikes or likes with less to no moderator for inspecting credibility of these voices. The potential customers of a hotel can be anyone and from anywhere has access to voice their criticism, praise or opinions. The target audience of hotel is rapidly changing and thus hoteliers are required to ensure that they are pitching to global audiences. Moreover, the image of hotel starts before the customer walk inside the door. Also, from the booking to their checked out, it is something that is needed to be embedded in the organization culture. Furthermore, the component of social media has become significant for maintaining a positive image among public for the hospitality sector. Secondly, the hotel sector is facing challenge due to dramatic overtaking by Online Travel Intermediaries for online bookings, who are charging good amount as their commissions.

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Besides above, foodies have driven the offerings of hotel culinary with chefs making meals in the form of crafted art. In addition to this, hotels are now investing in appointing celebrity chefs into their kitchen because of rise in demand of big chefs food from various food network shows broadcasted on YouTube and TV. Furthermore, meeting planners are using tools of social media to research, read and compare hotel reviews plus conference centres. Therefore, according to present scenario, hotels must designation their sales team to look over the LinkedIn profile of property as well as involve the whole team to connect actively with planners online on regular basis.

Task 3

3.1 Predicted future trends and developments in hospitality

The following are predicted developments and trends in hospitality industry:

Management trends

In this category the trend is reflecting an increasing number of entrepreneurs initiating every year a new business. Jobs from small organizations are faster vanishing that reflect is rising entrepreneurship from novel generations. One more trend from this perspective is philosophy of organization more on the basis of information rather than the traditional control and command mode. Many larger operators and companies have modernized their operators for experiencing great flexibility.

Technological trends

Over the last 20 years in technology, radical changes have been observed, which will continue as well. The evolution of data mining and artificial intelligence have facilitated automaton abilities and supports in solving issues more effectively than modern computers. Also, through the systems of sophisticated database operators are enable to have complete information in relation to customers that have changed their preferences and choices for rooms plus dining.

Environmental trends

Rising sensitivity to environment problems like global warming has forces various industries including hospitality to diagnose the significance of green environment and hence regulations are put in practice for the society’s interest.

Staffing trends

Hotels are facing employee retention challenges and further rising expectations for compensation is main concern.

Demographic trends

The growing importance of youth in economy has develop a trend of more millionaire of below 30 years of age. This trend is because of strengthening development of baby boomers in the arena of dot com.

Wellness and health trends

The purchase decisions of customers are now influenced by healthy food options available. The preference of customers has been shifted from sodas and ice-creams to yogurt dishes or salads. Moreover, health awareness of dinner demanding meals prepared from fresh ingredients and in hygienic environment.

3.2 Impact analysis for the predicted trends and developments

The impact of above trends have been analysed as follows:

Impact of management trends

The rising specialists demand for task-oriented teams have lessened the experienced industry personnel requirement. The trend of entrepreneurship can influence a range of new travel and hospitality businesses to appear at novel destinations or for other professional niche offerings.

Impact of technological trends

The novel technique may improve the industry’s effectiveness by controlling the overall costs. The improved database system of hotel will enable its owner to offer personalized services by ensuring return visits from loyal customers.

Impact of staffing trends

It is getting more critical for hospitality organizations to replace employees in job attritions situations. The best talents retention cost have multi fold in past years as well as costs of health care have influenced the industry.

Impact of environment trends

Hospitality associations are impacted by various legal requirements and obligation to get license plus committed to green revolutions.

Impact of demographic trends

Economic success of youngsters would result in more job turnover.

Impact of wellness and health trends

Such trend has forced hospitality firms to make balance between wellness and health through cost effective measures.

Conclusion

It can be concluded from above report that the two aspects composed in hospitality industry, i.e. accommodation and sustenance. Millions of tourists visit to London every year and thousands of rooms are required to provide accommodation to these visitors. This industry is having huge diversity and scope, as offers employment to manpower that belongs to different backgrounds. The paper is revealing that various professional bodies of UK are providing services for recruiting staff plus running hotel management operations smoothly. Moreover, there are different types of degrees, qualifications and training required to work in this industry. But the hospitality industry is not free from legislative, managerial operational issues and thus organizations working in it should be adopted plus change on the basis of demands in the market. While doing so, the companies should effectively focus on excellent customer service and staff retention.

 

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