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Unit 1 Assignment on Contemporary Hospitality Industry
One of the most flourishing industries of the world is the hospitality industry. The hospitality industries is much broader in comparison to other industries as in other industries there are only a few numbers of businesses, but the umbrella of hospitality industry consists a very vast range of businesses. The hospitality industry includes the businesses like restaurants, pubs, bars and clubs, hotels, contract catering, and other hospitality services. The backbone of this industry is the satisfaction of the customer as this industry is all about the customer service. (Reynolds, 2015) This is the reason that this industry is called the service based industry. The large portion of the world’s GDP growth comprises of hospitality industry. In UK alone around 2.9 million of the total jobs consists of hospitality industry which accounts for around 9% of the total jobs generated in UK. The 4% of the GDP growth is also consists of hospitality industry. (British Hospitality Association, 2015) The assignment is thus going to focus on understanding the structure of the hospitality industry. The aim of the assignment is to make the learner trends of the hospitality industry and also the future developments.
1 .1 Analyse the current scale, scope and diversity of the hospitality industry
Hospitality Industry: There are a number of businesses come under the umbrella of hospitality industry. However there is the sole aim of every business of hospitality industry and that aim is ‘to serve the customer in a manner that ensures higher customer satisfaction.’ The hospitality industry consists of the numbers of the organizations viz. Restaurants, bars, clubs, pubs, travel services, event management services, tourism information services, hostels, cruise, airlines and self-catering accommodations etc. (Robinson, 2012)
Scale and Scope of Hospitality Industry
Size: The estimation of the size of the hospitality industry worldwide can be understood by the fact that this sector contributes to 6.5 trillion of US dollars of the total business of world. While in UK 11% of the total GDP (Gross Domestic Product) consists of the hospitality industry. The following points clearly show the importance of hospitality industry economic in UK:
There are more than 1, 30,000 generated in restaurants and cafes
More than 25,000 jobs in food takeaways are generated in this sector every year
More than 1, 50,000 jobs are generated in hotels every year
Around 25,000 jobs are generated in accommodation services
In event management around 9,000 jobs are generated yearly (British Hospitality Association, 2015)
Types of Ownership in Hospitality Industry
- Partnership:The partnership is the type of ownership where there are two or more individuals/parties come into contract for the purpose of trade and all of them have to contribute in terms of money, labour, skills etc.
- Leasing: Leasing is also one of the famous ownership in hospitality industry as in leasing the money is paid to the main owner by the tenant for using the property.
- Franchising: In franchising the name is used by another person and for this he has to pay the money to the one whose name/brand the person is using.
- Contract:The ownership can be based on the contract also. In contract the parties come into agreement about the financial and non-financial terms of business. (PTE, 2012)
1.2. Discuss organisational structures giving using as example 2 different hospitality organisations
Organizational Structure of a Hotel (Hierarchical Organizational Structure)
- Hierarchical Organizational Structure of a Hotel: In such type of organizational structure there are different types of positions which are pre-defined. These are the formal positions which define the hierarchy of positions of the individuals in an organization (Set Up My Hotel, 2015). The hierarchical organizational structure defines the numbers of the positions in an organization the distributed authority and responsibility. There are a numbers of benefits of hierarchical organization structure:
- Authority: In this type or organization structure the people have clearly defined authority and they know what they are accountable for and to whom they have to report? This helps in smooth execution of work in an organization as everyone knows their immediate superiors and what are their roles.
- Communication:The one of the greatest advantages of hierarchical organization structure is that the communication is quite effective as everyone knows their role and they also have quite an effective reporting system which makes them able to have an effective communication with one other.
- Centralization:The hierarchical organization structure also helps to maintain a certain degree of centralization in an organization. The critical decisions and important strategies are thus defined by the leaders of the organization. (Johnson, 2015)
Functional Organizational Structure of a Restaurant
- Functional Organizational Structure:This is the most common type of organization structure of the restaurants. The functional organization structure is the simplest yet effective organization structure. In this structure the employees are grouped according to the tasks that they have to perform. The strengths of this structure are:
- Specialization: The functional organization structure defines the tasks of an organization according to the specialization. This helps in making the employees able to be specialised in their field as the longer they are associated with the same type of work the more they become effective and expert.
- Simple: This type of organizational structure is simple and thus this is the reason that it becomes easy for the individuals to understand their role in the organization as well as this structures is also very helpful in increasing the productivity of the company because the specialization leads to the enhancement of the performance of workforce. (Davoren, 2015)
1.3 Assess the role of hospitality related organisations and professional bodies.
British Hospitality Association: The British Hospitality Association is concerned with the hotel, restaurant and catering companies. This is a private association. The British Hospitality Association represents these organizations for over 100 years. This British Hospitality Association was developed in the year 1907 (Clever Hotel, 2015). The British Hospitality Industry works in five key areas for the development of Hotel, Restaurants and Catering Champion. These key areas are:
- Economy:The British Hospitality Association develops an environment where the hospitality industry can have a prosper growth in this competitive era and global competition.
- Employment: The British Hospitality Association is also concerned with providing the education to the individuals in order to bridge the gap between the skills of them and the requirements of the hospitality industry.
- Intelligent Regulation: The British Hospitality Association also gives the advice to the government in order to lessen the impact of costly regulation. This advice is given at national as well as local level.
- Sustainability: Another very important area of British Hospitality Association is the development of economic, societal and environment related success.
- Health: The one of the important functions of British Hospitality Industry is to take the proactive actions in order to shape the hospitality industry, and developing the policies to enhance the healthiness of the industry and promoting wellness of customers. (St. Patrick’s, 2015)
Institute of Hospitality:The Institute of Hospitality is especially concerned with the mangers and aspiring managers of hospitality industry. This is the organization (professional) which works for the development of the industry of hospitality by supporting the managers and those who want to become the managers. The Institute of Hospitality was established in the year 1938 (Institute of Hospitality, 2015). The roles of this institute in the hospitality industry are:
- Membership: The various membership programs are run by the Institute of Hospitality. The aim of these programs is to provide the members with the opportunity to develop their skills particularly required for the management position in Hospitality Industry.
- Qualification & Accreditation:The Institute of Hospitality is accredited as an awarding body, thus it offers a number of vocational programs in the field of management.
- PARN (Professional Associations Research Network):The Institute of Hospitality is also a member of Professional Associations Research Network abbreviated as PARN; which makes the Institute of Hospitality enable to provide the best quality services. (Institute of Hospitality, 2015)
British Institute of Inn keeping: The British Institute of Inn keeping which is abbreviated as BII is a professional body which helps licensed hospitality industry all over the UK. The role of British Institute of Inn keeping helps the individuals by playing following roles:
- Charitable Status: The British Institute of Inn keeping works as a charitable foundation for the promotion of standards. It also helps to develop well-managed and profitable business under the umbrella of hospitality industry.
- Membership Benefits: There are a number of benefits of the member of The British Institute of Inn keeping as events, newsletters, businesses magazine, and mentoring services are provided by BII.
- Advising: The British Institute of Inn keeping also gives the advice on legal, financial and licensing aspects of the business of hospitality industry. (British Institute of Inn keeping, 2015)
The Unit 1 Assignment on Contemporary Hospitality Industry was focused on the hospitality industry and the various organizations of the hospitality industry. The assignment gave me the insights of the hospitality industry and current trends of this industry. There are a numbers of organizations which act as the development bodies for the hospitality industry like British Hospitality Association, Institute of Hospitality, British Institute of Innkeepers and Springboard UK etc. The first third institutes were discussed in the assignment. The assignment made me able to understand the roles of these development bodies. The assignment gave me insights about the current trends of the hospitality industry and recent developments also. After completing the assignment I became aware about the different organizations of the hospitality industry and the current size of the hospitality industry in UK and worldwide. The different types of jobs are also discussed in the assignment and the roles and responsibilities of the different jobs were also discussed.
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Business Case Studies, (2015), External environment theory, Available http://businesscasestudies.co.uk/business-theory/external-environment/government-and-eu-influences-on-business-activity.html#axzz3rNTXcyBi
British Hospitality Association, (2015), British Hospitality Association,,http://www.bha.org.uk/
British Institute of Inn keeping, (2015),About BII,,http://www.bii.org/
Caterer (I), (2015),Search by Specialism,,http://www.caterer.com/search/hospitality-job-sectors
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