Table of contents

Introduction2

Task A

1.1.Analyse the current scale, scope and diversity of the hospitality industry....2
1.2.Discuss the organizational structure of different hospitality organizations..4
1.3.Assess the role of hospitality related organizations and professional bodies.4

2.1. Assess the staffing requirements of different hospitality industries6

2.2. Discuss the roles, responsibilities and qualification requirements for hospitality staff.7

3.2. discuss the current image of the hospitality industry.8

Task B

3.1. analyse operational, managerial and legislative issues resulting from recent developments
affecting the hospitality industry..9

4.1. present justified predictions for potential trends and developments in hospitality...11

4.2. produce an impact analysis for the predicted trends and developments...11

Conclusions12

References ..13

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Introduction

In this report I shall talk about the hospitality industry in the UK and its diversity as
industry and its types of businesses. Although it is a branch of industry which dates since ancient
times, it has developed considerably in the last centuries and nowadays it has grown to be one of
the most profitable and financially reliable industries. It is a varied and extremely extended
industry as it comprises all businesses which offer food, beverages, accommodation lodging,
recreation and entertainment. It has many types of outlets which are part of this industry, as for
example restaurants, hotels, inns, motels, hostels, bars, spas, recreational centres, pubs, event
spaces, cruise lines, transportation, etc. it is linked to other industries such as transportation and
the number of employment opportunities for people are enormous.

Although it is a diverse industry, all organizations and employees of different

departments work to achieve their primary target; that is achievement of customer satisfaction
and investments in modern technology and other building of the kind. In this report we shall see
which are the current trends of this industry, the future developments and the scale and the
professional bodies responsible for the development of hospitality.

Task A

1.1.

The hospitality industry in the UK is highly competitive, as there are thousands of hotels,
restaurants, pubs and other facilities of the kind. This is the reason why organizations try to offer
something new to customers apart from the feeling of comfort, quality or luxury. They respond
to all categories of customers and adapt to all cultural, social and economic changes by offering a
varied range of products and services of good quality. Although the urban and metropolitan areas
around bigger cities are the most wanted placed for business of hospitality, the rural areas and
resort areas are also desirable for their unique landscape and the quiet place.

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 As I said before there are plenty of organization types in this industry, however hotels are
the most extended as number of services and products. Their offer all types of services and
products from food and beverages to entertainment and event spaces, to accommodation, spas
and sport courses. Hospitality industry offers accommodation (hotels) and food and beverages(
restaurants and bars) for people who are away from home, that is why all organizations within
this industry try to give their customers the feeling of comfort and relaxation they have when
they are home.

Hotels can be differentiated according to:

their facilities (based on star numbering there hotels which offer 1*, 2*, 3*, 4* or 5*
- one being the most modest and five offering luxurious conditions and amenities)
their location (City Centre Hotels, Airport Hotels, Freeways hotels)
price(economy/budget hotels, residential hotels, luxurious hotels)
type of services offered.(convention hotels, casino hotels, etc)

According to their type or size, hotels offer, besides accommodation and food and
beverages a wide range of facilities and amenities such as Wi-Fi, fax-machine, 24-hour service,
swimming pools, health spas, coffee shops, souvenirs boutiques, etc. ( Lundberg, 1994)

Although some of the rural hotels were only seasonal due to the limited access in the area, along
with the modernization of the roads, they now offer permanent accommodation. Smaller hotels
are usually more economic, with fewer staff members and fewer facilities, but the price is
adapted to the services offered. Other category of hotels, those which are part of global
enterprises ( Hilton, Marriott) are usually luxurious hotels which offer to their customers
expensive services butler service, chauffeurs, conference spaces, banquet rooms and so on.

All hotels are divided into two main departments: administrative and operational. The
administrative department handles all finances, accountability, human resource management,
purchase, etc. The operational department comprises all employees each with their jobs and
responsibilities; the departments reflect the physical work of the staff.

Restaurants vary in size, location and price. There are bigger, luxurious restaurants inside
hotels, fast-food restaurants outside hotels, bars, pubs, coffee shops, mobile stands, takeout, etc.

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Although restaurants are smaller in size than hotels, they too want to offer the customers the
atmosphere and feeling of home and comfort. The price of the food and beverages depends on
the size of the restaurant, the quality of the products and services and the ambiance and dcor
inside the place. Restaurants are responsible for purchasing raw materials, prepare and serve
food and beverages. ( Lundberg, 1994)

1.2.

The organizations within the hospitality industry are divided into two main departments:
functional and operational.

The functional or administrative department refers to all departments that are responsible
with the administration of finances, the human resource departments, marketing, research and
development, security and maintenance. Depending on the size of the company, the number of
people working in these departments is much bigger, as chain hotels and restaurants have CEO,
BOD ( Board of Director), general managers, managers and assistant managers for every
department, accountants, engineers, supervisors, IT specialists, etc.

The operation department comprises all employees who perform physical work. They deal
closely with the customers, they are engaged in conversations with them and respond to the
customers demands, take the complaints or praises. They are the first people who are usually
responsible with the good or bad service of the customers. The operation department is formed of
all employees of the hotels, restaurants, bars, event rooms, housekeeping services, front-of- desk
services and all the other facilities of the place (waiters, cooks, chefs, porter, dishwashers,
cocktail bartender, cashier, maids, concierge, chauffeurs, etc.)

1.3.

There are numerous organizations and professional bodies in the UK which are
responsible with the main regulations in the hospitality, with the training and provision of
qualifications and educational programmes for the future employees of this industry and the
protection of the interests of the stakeholders. The professional bodies also provide mentoring
opportunities and news related to the hospitality industry.

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Some of the well-known professional bodies in the hospitality industry are:

People 1st - it is an organization responsible with providing updates about

passenger transport, travel and retail, policy insights, online information and blog
posts, research consultancy and the needed skills of this industry.

British Hospitality Association offers a wide range of membership services a

support people who want to achieve professional recognition, education, personal
development and advance in their career.

British Institute of Innkeepers (BII) it is professional body which helps

employees of the hospitality industry to stay updated with the latest news through
events, newsletters, business magazines. It also offers mentoring service, advice
on legal, licensing, financial and general business issues, and support its members
throughout their career.

Institute of Hospitality (IoH) it is a professional body mainly for managers who

want to grow their knowledge and achieve higher professional standards of
management and education in the hospitality and tourism.

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 Springboard UK gives people the opportunity to speak about theory opinions
regarding products, politics and other topics related.

Academy of Food and Wine Service (AFWS) it is dedicated to raise awareness

about the food and beverage service, raise the standards and it encourages
teamwork. In addition, it has training programmes, E-learning courses and
organizes events such as national competitions, masterclasses and awards.

UK Housekeepers Association (UKHA) offers support and training for those

who want to work in this industry. It also informs, provides lectures, training
courses, raise standards to all its members.

2.1.

The staff in the administration department usually handles the paperwork and analysis
regarding finances, costs, prices, payments, investments, profit, policies, procedures,
employment contracts and other documents related to marketing, management, human resource,
etc. On the other hand the staff in the operation department does the physical work; that is
cleaning the rooms, serving the guests, supervision of work, open the door, and answer the
telephone and other things.

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 The classification of staff and its requirements goes beyond that, as the employees can be
divided into permanent staff and seasonal, casual, part time or full time. Seasonal employees are
hired for the season and casual workers have employment terminable without notice. The
immigration issues affecting the country in the last years determined a growth in the number of
foreign employees who usually work in operation areas.

Although restaurants and hotels may have all these categories of employees, it is
important to have the necessary number of permanent employees because they are more reliable,
responsible and they know more of the work they are doing. They also teach the casual or
seasonal workers what to do; they are more involved and committed to their work as they stay in
the job for years and create for themselves opportunities for career development.

Another classification of employees is related to their skills and qualifications. Thus there
are skilled and semi-skilled staffs. Normally, managers and members of the administrative
departments have higher educational levels with degrees, diplomas, training programmes and
qualifications. In is not unusual, however, that other employees of the operation department to
have qualifications and training programmes.

In smaller organizations there are fewer employees who are responsible for more than
one task or department. In bigger companies the number of employees is impressive. The human
resource department is responsible with the hiring of the necessary employees, but in smaller
firms, when there is no such department, the owner or the stakeholder makes the decisions about
the employees. (Blum, 2008,)

2.2.

Although the managers and other employees of the functional departments have the
highest educational levels, it is advisable that all permanent employees have some qualifications
and training. The managers are required to have college diplomas, training programmes,
convention, conference and seminar attendance which can be achieved in universities,
professional bodies or through effective work. The awards and diplomas can be through
university graduates, like MA and PHD. Other major qualifications which are noticeable are
BTECs, NVQs, professional courses of first aid and food safety, etc. The university departments
which are most helpful for hospitality employees are hotel and hospitality management, business

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and languages, travel, tourism and leisure studies, finance, accountability, public relations,
marketing and so on. For some employees of the operation department it is possible to achieve
qualification at workplace through training programmes, courses or workshops.

The organizations are mainly run by managers and directors assisted by assistant
managers and supervisors. Managers have the responsibility to organize, plan, delegate
responsibilities to members of the team and to make decisions related to the staff and the work.
The higher the educational level and qualifications are, the higher is the position within the
organization. The food and beverage department is responsible for the purchase, delivery,
preparation and serving of food and beverages. The front office department is responsible with
the booking of the rooms, recording the customers demands and complaints and with
responding to customer needs and informing them about the services offered. The conference
and banqueting department is responsible for booking the available space for different event and
organizing those events. The maintenance and security department is responsible with the
cleanness of the rooms and hotel in general and with the safety and health of the guests. All
employees have their own responsibilities and roles within the organization. The teamwork and
the communication between the members of the same department and between different
departments are important for the good functioning of the company. ( Ninemeier, and Hayes,,
2008.)

3.2.

The hospitality industry is highly influenced by a series of factors which develop the need to
change it. The PESTEL factors are determined by changes at national level. These factors are:

Politics the change of government, partys point of view

Economic inflation, taxes, interest rate, trade restrictions, economic growth, etc
Social demographic changes, immigration, density of population, cultural aspects, age
distribution, population growth rate, etc.
Technology the appearance of modern equipment, internet development, online
booking
Environmental weather, pressure groups strikes and petitions, geographical position,
climate change, landscape preservation, pollution, waste, recycling, etc.

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 Legal - pressure and influence of the European Legislation, the national changes in
legislation and regulations set by the authorities, immigration laws, VISA application,
etc.

Another important factor which has a big influence on the current image of hospitality is the
customers demands. They are the ones who pay to receive different products and services;
therefore they are the ones who set the trends and the necessary changes. A large number of
customers mean that the business is profitable, successful and highly competitive. Customers can
be attracted through smart advertising, quality services and products, immediate response to their
needs, complaint answering and a series of investments related to modernization of technology,
increased security measures, modern architecture and interior design, comfortable rooms and
provision of amenities and entertainment spaces. As hospitality means the provision of services
and products for people who are away from home due to business activities or leisure time; it is
important to make them feel good and comfortable.

Smart advertising can be achieved through media advertisement ( TV, radio, newspapers,
magazine), online articles and blogs, vlogs, word of mouth, surveys for users and non-users,
provision of quality services and efficient staff work. The image of the hospitality industry is
changed and shaped according to the customer demand, but sometimes it can respond to
demands for pressure groups, especially in matters related to environmental issues.

Immigration and foreign employees is another aspect that hospitality is facing. The CSR (
Corporate Social Responsibility) draws attention that organizations must take in consideration
the social and ethical aspects. In addition the hotels and restaurants have begun to work in joint
with the local communities as they are an important asset for the economy and the society of the
place.

Task B

3.1.

The last years meant a significant change for the hospitality industry. This is due to the
greater demand from the customers, the cultural, ethnical, financial, gender differentiation of
those who are in search of hospitality products and services. As a result of the major demand, a

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wide and varied range of products of all kind appeared, especially in the food and beverage
sector, which meant a greater competition and a major modernization of the outlets. Hotels and
other accommodation outlets where as well forced to adjust to the unexpected changes that
where necessary in order to keep up with the new trends in hospitality.

Another issue affecting hospitality is the need to produce quality products and services in
order to increase the level of customer satisfaction and increase the profits. Quality means that
the products and services must be flawless and close to the standard model. All products and
services within hospitality, especially those found in the food and beverage sector must ensure
the health and safe of the customers. There are numerous inspection agencies and authorities
responsible for monitoring, supervision and control of the organizations.

The number of possible customers depends a lot on the change of lifestyle, education,
immigration legislation, branding, cultural characteristics, etc. in the last years, the borders of the
country opened for many foreigners and for others it was easier to get a VISA. That is why there
was a huge wave of tourists and students willing to spend money in the UK on education, leisure
trips, relaxation or adventurous journeys.

Investments, franchises and branding are aspects that brought bigger changes to the
economical and industrial sectors. Worldwide enterprises and global companies invested in this
country and build huge hotels and restaurants as part of a chain of other hotels. In this case,
brand is a major asset, as customers are attracted to well-known brands as they consider them
better.

Other issues affecting this industry are pressure groups request which are mainly about
environmental issues (reduce pollution, waste quantity, recycle effectively, protect nature,
protect human rights, etc.), skills shortage and world recession.

The PESTEL factors, which were mentioned above in this report, are important issues
which brought changes in all departments and sectors in the hospitality industry. Laws, the
government, the society are all essential factors which determine huge changes or small but
progressive transformation about the way customers and providers perceive the necessities,
quality, hospitality and comfort.

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4.1.

The trends in hospitality are determined by the issues which affect this industry, the
events that occur in the country and at international level, the modernization of the technology
and the customers demands.

The healthy food trend is spreading fast as more and more people are concerned about the
food they eat and about their health. That is why the restaurants have changed their menus by
adding food that is organic and different courses and specialties for the raw vegans, the
vegetarians and those who eat only bio food. The purchase of the raw material is done only from
well-known producers with whom the restaurant has long term contracts. Eco-friendly farms are
very popular among the restaurant chains where the customers have special demands.

The new modern advertising methods, modern technology and gadgets and online
programming have also changed and shaped this industry as it is more effective and faster to
inform the customers through the internet websites. The only problem is that information must
be adapted constantly and keep in touch with the customers. Booking a room can be easily done
through the internet. The hotels must have some amenities such as Wi-Fi, computers, sounds
systems, TV screens in order to be considered eligible for some categories of customers.

A reduced quantity of energy is also desirable. More and more hotels have invested in
their own equipment meant to conserve the energy. Others have invested in equipment and solar
panels to produce their own energy.

Another trend is cost saving through optimization of performance, skilled and efficient
staff, reduce of costs through contracts with the same producers to obtain discounts. The location
of the hotel or restaurant is also important. It needs to be somewhere where it is easy for the
customers to get to, preferably near tourist attractions.

4.2.

The new trends and the way in which customers perceive a hotel are things which
managers must take into consideration. It is essential for managers to predict what customers

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want and which the main changes at national and global level are. Impact analyses are meant to
provide a better understanding of the business and it becomes easier to know which the main
priorities of the company are. Knowing the demands of the customers can be achievable through
a BIA ( Business Impact Analysis), that is surveys of users and non-users of the products and
services, questionnaires, telephone interviews, meeting of the staff, etc. The trends in hospitality
are closely linked to the customers demands, interest and culture, therefore it is crucial to know
the customers that a hotel want to attract. The changes that happen within a hotel or another
hospitality outlet should be affordable and sustainable. The staff must be able to adapt to these
new changes, otherwise it is not advisable to implement changes in a fast pace. Franchises
between larger companies and smaller organizations are more and more popular. Some of the
worlds famous brands in hospitality are Ritz, Accor, MacDonalds KFC, Pepsi, Coca-Cola,
Hilton, etc. These brands incorporate the small companies and make them implement their own
regulations and policies. Globalization and eliminated borders between countries have produced
a wave of customers who are willing to spend money if they are satisfied with the products and
the services.

Conclusions

Hospitality industry is one of the most profitable, changeable and sustainable industries
in the world. It is so vast and diverse that customers are attracted to enjoy the products offered.
No matter the reasons why customers need the hospitality products and services, whether for
business, education or leisure it is important to keep in mind that hotels, restaurants, bars spas
and other outlets should offer unforgettable experiences, offers for different categories of people
and budget and plenty of choices.

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References

1. Blum, S., 2008, Hotel Operations: Theories &Applications. Kendall/Hunt Pub Co.
2. Barrows C. W., Powers, T., 2009, Introduction to the Hospitality Industry, 7th edition;
published by John Wiley &Sons. Inc., Hoboken, New York,
3. Hoque, K., 2002. Human Resource management in the Hotel Industry: Strategy,
Innovation and Performance. Routledge
4. Lundberg D., 1994, The Hotel and Restaurant Business, New York, John Wiley &Sons,
Ltd.
5. Ninemeier, J.D. and Hayes, D.K., 2008. Human Resources Management in the
Hospitality industry. John Wiley & sons
6. Ransley and Hadyn, 2004, Developing Hospitality Properties and Facilities, Second
Edition, Butterworth-Heinemman.

http://www.people1st.co.uk/Research-policy

https://www.instituteofhospitality.org/

https://www.springboarduk.com/Portal/default.aspx

http://www.afws.co.uk/

http://www.ukha.co.uk/

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