Table of contents

Introduction.2

TASK A

1.1. .
.2

1.2....4

1.3.6

2.1.7

2.28

3.29

TASK B

3.110

4.1..12

4.2..12

Conclusions....13

References.14

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Introduction

The hospitality industry is very complex and diverse. It is spread all over the world and it
continues to grow and develop, covering the needs and expectations of different categories of
customers. It has an old history, dating back in ancient times, however it grew considerably in
the Middle Ages due to monasteries and inns along the road which offered accommodation and
food for travelers.

In this report I am going to present the size and scope of the industry, its structure, what
skills the employees must have and how they can develop their career and the current image of
the hospitality. The changes that happen within this industry due to the influence of different
factors and the new trends are also discussed in the last part of the project.

TASK A

1.1.

The term hospitality represents the positive characteristic of being hospitable with people
who are away from home. The hospitality industry is formed of all sorts of business types and
organizations in all countries, but the majority of them and the most luxurious are concentrated
in the urban areas or in famous resorts. The industry has developed fast and now it generates
millions of pounds to the national budget, every year. It has the support of the government and
the national funding resources as it is a valuable asset, offering numerous job for people and thus
it decreases the unemployment rate. Other industries and organizations are related to hospitality,
such as, for example, transportation, leisure and tourism industry.

Although when people say hospitality they think more of hotels, the industry is more
complex than that. Surely, hotels include all products and services that customers want
( accommodation, foods, beverages, entertaining, gaming, attraction, recreational places, event
rooms) other organisations have developed considerably and nowadays we can include in
hospitality organizations such as nightclubs, spas, public swimming pools, restaurants, fast food,
unit, catering companies, inns, theme parks, gaming clubs, cafes, bars, cruise ships, pensions,
and so on. The scope of hospitality industry includes the lodging segment, the food and
beverages, entertainment and recreation segment and travel and tourism.

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 In the UK there are more than 100.000 food organizations which offer food from the
international cuisine, the traditional British cuisine and fast food products. Apart from the big,
luxurious and independent restaurants which are addressed to a certain category of customers,
the English take aways, the fast food organizations and pubs are mostly preferred by foreigners
and locals. The UK and especially the urban areas and the airports are filled with different fast
food organizations selling cheap food which is made in front of the customer. There are famous
brands- global organizations and small companies which attract the customers with different
products and colourful advertising. According to Dailymail, in 2011, there were 5,54 billion
visits to UK fast food restaurants such as Pizza Hut, McDonalds, KFC, Pizza Express, Burger
King, El Pollo Loco, Taco Bell, Dominos Pizza, etc. (dailymail.co.uk)

Source: www.pinterest.com

The hotels and organizations specialized in offering lodging are categorized according
their size, location, targeted customers, price and types of services. If we consider their location,
there are airport hotels, resort hotels, city centre hotels, freeway hotels, etc; according to their
pieces there are economy hotels, full-service hotels and so on. The star grading scheme begins
with 1* hotels, followed by 2* hotels, 3* hotels, 4* hotels and 5* hotels.

The 1* and 2* hotels are small hotels and inns with acceptable facilities, limited
amenities and low budget and prices. The 3* hotels are more spacious they have a larger number
of bedrooms and private bathrooms. The 4* hotels offer high standards and quality products and

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services. They offer many amenities and have incorporated restaurants and entertaining spaces as
well as event venues. The 5* hotels are the most luxurious, they offer diverse, quality services
and products and they are addressed to wealthy people as the prices are high. These hotels are
very big and they offer comfort and luxury as they have incorporated restaurants, terraces, bars,
pools, gaming clubs, health and spa, event spaces and many amenities. The most famous brands
of hotels in the UK are Four Seasons, The Ritz, Hilton, Savoy, Ramada, Marriott, Independent,
etc.

Georgian Hotel 3* hotel

( Source: www.georgianhotel-london.co.uk)

The Mandarin Oriental 5* hotel

(Source: www.essentially-england.com)

1.2.

The organizational structure of hotels is divided in two major departments: the core
operational department and the core functional department. Whereas the operational department

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comprises all employees in the departments where customers are actually served and cared, the
functional department comprises the employees which organize the finances, the organization
and the workers. (Blum, 2008)

The core operational department includes:

the food and beverage department - it deals with the purchase of raw food, preparation
and serving the customers with food and beverages. We include here restaurants, cafes,
bars, pubs, nightclubs, coffee shops, room service, etc,. The staff include cooks, waiters,
bartenders, chefs, sous-chefs, etc,
the housekeeping department - it is responsible with the cleaning of guestrooms, public
areas from the inside and outside; the staff include maids, room attendants, assistants,
etc. It is the department with the largest number of staff .
the front office department it includes all employees who handle the room reservation,
checking in and out, take in charge of guest accounts, distribute the keys to the rooms,
provide useful information for the guests, send and receive emails, etc.

The core functional department includes:

the marketing and selling department it is responsible with all management activities,
advertising, public relations, etc.
the safety and security department it is responsible with ensuring the security of guests
and employees as well as their possessions.
the engineering and maintenance department it is responsible with the good
functioning of the basic utilities such as electricity, hot water, air conditioning,
maintenance of the equipment, etc
the finance, accounting and control department - it is responsible with the cost control,
investments, operating costs, bookkeeping of financial matters, etc.
the human resource department it is responsible with employee management, hiring
and firing employees
the administration department it is responsible with the administration of personnel,
employees welfare, medical and health insurances

1.3.

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 The professional bodies and the different associations in the hospitality industry have
the role to educate the employees and the managers, to inform them about the latest news and the
current legislation, to award employees and the activity of the organizations, to praise leadership
styles and so on. There are many different professional bodies in the UK and some of the well-
known bodies are:

People 1st - is a professional body which exists to offer counseling to orgaisations and
employees of hospitality. It offers awards, and organize contests to promote fair
competition and higher quality standards for the services and products of the industry.
Employees or future potential employees of hospitality, leisure and tourism can find here
training programmes meant to develop their skills and teach them to be more efficient in
their work. People 1st also provides information through newsletters, brochures and
magazine articles to all those interested to update their knowledge.
British Hospitality Association it exists for more than 100 years in the UK and it
struggles to represent the hospitality industry to the government and the policy makers so
that the industry can develop in proper terms. BHA helps people to achieve professional
recognition and progress in their career development within this industry.
The Restaurant Association it is a trading division of the BHA; it provides professional
guidance to members and represents their views to the government.
Springboard it is addressed to young people who want to develop a career in this
industry as it offers training programmes, news and information as well as counseling.
Institute of Hospitality its main targets represent the managerial development and skills
improvement. It is a professional body which is internationally recognized and the
graduates of the training programmes of the Institute of Hospitality receive a proper
education of higher quality standards and professional recognition.
British Institute of Innkeepers awards the work and commitment of the professionals in
this industry and provides mentoring services, advice about licensing, legal guidance,
policy insights, and so on.
Academy of Food & Wine Services offers training packages and accredited training
courses that ensure effective front-of-house food and beverage service competency to the
highest levels of performance. It also organizes competitions and events to make the
employees more competitive and help them grow in knowledge, skills and confidence.

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 UK Housekeepers Association it is a non-profit association which connects people from
Hospitality to Housekeeping industries and promotes housekeeping careers through
events, meetings and newsletters.
Association of Catering Excellence an innovative organization which encourages
caterers and associates from all sectors of the industry to exchange ideas and initiatives.

2.1.

The structure if the staff in a hotel or restaurant is well established, respecting a

hierarchy. The number of employees depends on the size of the organization and its type.
Whereas smaller hotels have a limited number of employees who performs different jobs and
share multiple responsibilities, in a larger organization every employee has its own responsibility
and job to do, there are numerous departments and the number of managers and is much bigger.
(Ninemeier and Hayes, 2008). The whole departments and the business are run by the CEO and
a BOD (Board of Directors). The effectiveness of the work depends on the skills and attitude of
the employees who are required to have some training and sometimes experience before. There
are different types of employees in the hospitality industry:

Functional specialists they are the managers and the assistant managers of the
functional department
Operational specialists- they are the managers and assistant managers of the operational
departments
Skilled and semi-skilled staff are the employees who possess the required skills for the
jobs or who are in a continuous learning programme
Supervisory employees these employees are responsible with the good functioning of
the work and the employees organization
Apprentices these workers are still learning to assume responsibilities or gain
experience in the field by working and taking example from the experienced employees.
Full time and part time employees some workers have the normal working programme
while others work only half the time.
Casual and seasonal workers they work on some occasions or during the seasons with
the largest number of customers (wedding season or summertime vacations)
Permanent workers they work without any terminable contract.
Foreign workers their number has grown due to the wave of immigrants and the
specialists came for an exchange of experience with the British companies
Volunteers they work without gaining profit from their work.( Lundberg, 1994)

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2.2.

Depending on the job they are performing, the employees of the various departments
of a hospitality organization, are required to have some training, experience or education. The
highest level of education, training and experience belongs to the managers, directors and
assistant managers. All the other employees, though, must have some training courses or training
at work in order to perform well in their tasks and be efficient. The hierarchy scale is respected
and it prolongues to the degrees and qualifications of an employee.

Managers have many options for colleges they can attend in order to achieve the
highest educational levels and the degrees needed for the job. The usual options are: hotel and
hospitality management, business or management, business with languages, leisure, travel and
tourism studies, finance and accountabilities, public relations, etc. the graduates of these colleges
and universities will get diplomas like MA and PhD and professional and educational
recognition. The university last for at least 2 years, depending on the branch chosen.

Other important degrees and qualifications for hospitality are BTECs, NVQs, professional and
specialists of different responsibilities ( first aid, food safety, hygiene, etc)

Many hospitality organizations offer training packages to their employees at workplace, if not
the accredited professional bodies and association offer a huge range of courses, e-learning,
workshops and so on. The work experience, the different contests and competitions, awards,
seminars, conferences provide a good chance to learn and gain the necessary knowledge for
hospitality jobs.

3.2.

The hospitality industry in todays views is relying more and more on technology
especially when it comes to e-booking, advertising and information provided to customers. The
hospitality industry is one of the most flourishing industries, which provides thousands of jobs to
people, that is why the government and the local communities support any investments made and

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franchises with diverse brands. Apart from helping decrease the unemployment rate, hospitality
leads to a series of changes which modernize the place (new roads and freeways, construction,
etc).

The industry is highly competitive due to the large number of businesses and it is forced to
change and adapt to the influences and the demands that shape it constantly. The PESTEL factors
are the ones that produce the major changes in the industry due to the political, economical,
technical, social, environmental and legal changes. The movement of people both locals and
foreigners influence the need for supplementary businesses with accommodation and food and
beverages services. The lifestyle, education and culture of the masses determine the prices ,
modernization and technology supplies within an organization and the legal, economical and
political aspects ( inflation rate, policies, payment raise, etc) determine administrative changes.
Although the influences (external and internal) shape the face of the industry, it proved over and
over again that it can adapt and still grow. In an era of technology booming, the market
strategies, the administration and other operations within hospitality have been modernized.
Thus, nowadays it is accustomed to advertise on the internet through websites, blogs and vlogs,
to receive complaints and suggestions online, to perform surveys on the telephone, to book
online and correspond with other organizations through emails. The stakeholders have created
workplaces and job opportunities for the immigrants and offered a chance to those who are
willing to work part-time or seasonal. The pressure groups, the national, European and global
environmental issues have forced the organizations to find solutions and protect the
surroundings, the habitat and animals living in the area and to reduce waste, pollution, energy
and water consume. Other customers influenced the food industry with the new idea of healthy
eating. Thus the hospitality industry and the organizations started to use solar panels, equipment
to reuse the heat and the energy, to recycle and be friendly with the environment through the new
trend of green hospitality. The restaurants changed their menus as they included raw vegan food,
vegetarian options and organic and bio food.

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TASK B

3.1.

There are various factors affecting the industry, but the most visible and influential is
the human factor. The requests and expectations of the customers are defining for the changes
made in the hospitality. The large number of immigrants entering the country, their
nationalization, the cultural exchange, the lifestyle and educational level of the customers are all
aspects that shape the industry and force it to adapt to new changes. The hotels and restaurants
are forced to include in their services and products diverse items to please as many categories of

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customers as possible. Menus, atmosphere, location, prices, costs, interior design are all modified
continuously according to the guests requests. Other issues like the recession, the globalization,
green issues, promotion of health food and eating have a major impact on this industry in the
hotel and food and beverages sectors.

The PESTEL factors provide a useful framework of the hospitality industry

influences. Thus:

- politics : the current European crisis regarding the masses of immigrants, the acts of terrorism
and their continuous threats, the sanctions imposed to Russia and the partys political changes.
These issues have led to an increased security in and outside the hotels and restaurants. ( Hilton
PESTEL Analysis, 2015)

- economy : the economic growth in the UK due to the external commerce and the international
market for exports, the inflation rate, the increased taxes and fees and the value of GBP related to
other currencies, mainly Euro and the American dollar. All these changes determine a series of
changes and adaptations of the costs- prices and profit balance.

- social : the demographic change, the role of social media, changes in family patterns, the
increased number of foreigners and immigrants, the movement of masses from the rural areas to
the metropolitan centres. ( Hilton PESTEL Analysis, 2015) The fact that foreign students are
accepted by many British schools and colleges has generated a huge number of entries in the
country for educational purposes. Apart from that the opening of borders for foreign investors
and the attempt of the government to attract them has successfully flourished into creating new
businesses, new employment opportunities and more customers for hotels and restaurants. The
increased crowds from the metropolitan centres and the big cities has led to a huge number of
hospitality organizations in these areas.

- technology : the new and modern equipment forces the investors to buy more devices and
operate online for booking, reservations, etc; the massive use of the Internet has the benefit of
providing information and making a connection with the customers through websites updated
regularly. ( Hilton PESTEL Analysis, 2015)

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- environment : the acute need for a better preservation of the landscapes and the saving of their
natural habitat of different species of animals in remote areas; the effects of natural disasters, the
climate changes, the environmental pollution and the urge to reduce the level of pollution and
waste ( Hilton PESTEL Analysis, 2015)

- legal : the new legislation regarding consumer protection, licensing, immigration and the
catering industry

4.1.

All the factors mentioned in the previous chapter influenced and shaped the industry,
but the potential trends are established by the customers and their demands. Customers are
driven by their cultural heritage, their education, life expectancies, desires and needs. They have
demands and expectancies according to their budget, the global trends, the needs and achievable
desires. Thus, it has become an international need and desire for healthy eating. ( Ransley and
Hadyn, 2004) The numerous cases of obesity, the lack movement and sports, the need to stay
healthy and in shape have caused a major turn over in the dietary habits of many customers
especially the youth and the educated or wealthy customers. The restaurants have modified their
menus and now they are ready to offer organic and bio products, as they have thought of closing
contracts with farms and producers with bio certified food. On the other hand, the fast food units
are addressed to ordinary people who are in a hurry and need food quickly. The corporate
organizations, however, have closed contracts with the catering companies to serve food for their
employees, based on the need to eat healthy and to avoid junk food. (Laws et al. ,2006)

Another international trends is the preservation of the landscapes and the animals n the remote
parts. Related to this subject is also the need to reduce the pollution, the waste and the energy
level due to the global warming effect which changes the climate and causes natural disasters.
The development of the technology and the engineering have raised the number of investments
for the gadgets, devices and equipment needed in hospitality. . (Laws et al. ,2006)

4.2.

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 The global financial crisis may determine a growth of the demand for cheaper
accommodation services, therefore the number of small hotels and inns, independent from the
famous brands can lead to an increase of the construction of hotels with affordable prices and
acceptable conditions. On the other hand, rich and wealthy customers will still look for 5* hotels
which offer the comfort and the luxury that the guests are so fond of. These types of hotels will
continue their investments in technology, electrical equipment and amenities to keep up with the
expectations of the customers.

The need for continuous improvement of the services and products is in the present
more acute than ever, but it must continue in order to reach the high standards that the legislation
and the customers are requiring. The Business Impact Analysis is necessary due to the need to
understand the works of the business, the details, the priorities and what causes the business
losses. It is important to know what has an impact on the business and what can be done to
prevent the losses. The BIA can be performed through different methods, but the cheapest and
probably the most efficient are the surveys on users and non-users, questionnaires, workshops,
brainstorming meetings, etc. according to the results of the tests used, the managers will be able
to make responsible and efficient decisions about the business.

Conclusions

The hospitality industry is and it will be one of the most profitable industries and one
of the most adaptable to changes. It continues to grow and develop, to change based on the
needs, influences and customer requirements, but it will still gain profit and make huge
contributions to the national economy and for the society, both locals and foreigners.

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References

1. Blum, S., 2008, Hotel Operations: Theories & applications. Kendall/Hunt Pub Co.
2. Hall, J. E., 1977, The Language of Hotels in English, New York, Prentice Hall.
3. Hayes, D. K, and Ninemeier, J. D., 2008, Human Resources Management in the Hospitality
Industry, John Wiley & Sons.
4. Lundberg, D., 1994, The Hotel and Restaurant Business, New York, john Wiley & Sons,
LTD.
5. Laws et al. , 2006, Managing Tourism and Hospitality Services: Theory and International
Applications. CABI
6. Fast food Britain, 2012, online article, available at:http://www.dailymail.co.uk/news/article-
2087361/Fast-food-Britain-More-half-meals-burgers-kebabs.html
7. http://www.afws.co.uk/home/about-us/
8. http://www.hospitalityguild.co.uk/About/Partners/Restaurant-Association
9. https://www.linkedin.com/grps/United-Kingdom-Housekeepers-Association-4829945/about
10. http://acegborg.tumblr.com/
11. Hilton Hotels PESTEL Analysis, 2015, online article available at: http://research-
methodology.net/hilton-hotels-pestel-analysis/

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