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Unit 1 Contemporary Global Hospitality Industry Assignment
Diploma in Hospitality Management
Unit Number and Title
Unit 1 Contemporary Global Hospitality Industry
This section of this Unit 1 Contemporary Global Hospitality Industry Assignment will try to carry out a research on the contemporary global hospitality industry. On the basis of this research, the findings which will be obtained will be included in this section of the report. The themes which will be looked into through this study are:
- An analysis of the structure of the current scale, scope and diversity of the hospitality industry (AC 1.1)
- A discussion of the organisational structure of different hospitality industries
- An assessment of the role of hospitality related organisations and professional bodies in the hospitality industry
- An assessment of the staffing requirements of different hospitality industries
- A discussion of the roles, responsibilities and qualification requirements of hospitality staff
- An discussion of the current image of the industry
AC1.1 An analysis of the structure of the current scale, scope and diversity of the hospitality industry
In this we will be looking into the structure of the current scale, scope and diversity of the hospitality industry. As far as the global hospitality industry is concerned it can be confirmed that it is one of the biggest industries and there are various economies which are significantly dependent on the hospitality industry. This industry is also very important as far as playing an essential role in developing as well as maintaining a better working world is concerned. This process is achieved by the industry in view of the fact that it has the ability of connecting various global regions across economic, experiential in addition to investment platforms (Frank, 2013).
As far as the global economy is concerned, the impact of hospitality is also immensely important. Despite the varied geopolitical instabilities, the development of various new concerns over health as well as the lack of growth in the economy of few regions, the global industry of the hospitality has been able to thrive through cycles of accelerated growths in addition to having optimism prevailing in a number of global markets. On a global level, the total number of jobs which are generated by the travel and tourism industry is as much as 266 million. This industry also contributes almost one tenth of the total global gross domestic product (GDP). The industry is poised to grow at a rate of 4 per cent for the year 2015. Hence it can be said that the sector will be more and more recognized as one of the most important drivers of economic growth at the global, regional and local levels.
It is expected that during the near future the global hospitality sector will be growing further and for this reason the key players of the industry are trying to deploy the capital investments strategically as well as optimize the same. This coupled with the strong appetites of the investors and the convenience of creative as well as flexible capital sources will be able to lead to a trend of hotel acquisitions which will in turn increase the demand for the same. For this industry, one of the most important factor is the consolidation of third party management platforms and asset-light. This happens due the reason of continued demand by the investors for seeking qualified operators for improving the performance of hotel assets which have been acquired recently. Also the lodging markets which were dormant previously are expected to gain traction in view of the fact that investor groups are finding increasing opportunities forgaining higher returns in these emerging submarkets as well as secondary locations. Also the use of the technology has been able to change the course of the industry and it is expected to grow even more through continuous evaluation of the hoteliers and customers on the return on investment in a lodging experience grounded in sophisticated social, data and mobile applications (Kale, 2001).
AC 1.2 A discussion of the organisational structure of different hospitality industries
The entire gamut of the hospitality industry is comprised of the following services:
- Lodging and accommodation,
- Food services and
- Travel and tourism sector
Following are the structures of each of these industries:
For travel industry:
- Car rentals
For food services industry:
For lodging and accommodation industry:
AC. 1.3 An assessment of the role of hospitality related organisations and professional bodies in the hospitality industry
The hospitality related organisations and professional bodies in the hospitality industry and especially the legal as well as regulation guideline decision making bodies are very important for the hospitality industry. There are various government regulatory requirements which are needed to be met by the companies operating in the industry to confirm the sustainability of the business. These government regulation bodies vary with the country in which the company is operating and hence it becomes increasingly difficult for the companies, especially the ones which have global operations to ensure that all of the wings of the company are operating as per the local law and regulation of the industry. For an example we can look at the US hospitality industry. As far as US hospitality industry is concerned, all of the states have their specific regulations as well as requirements on the subject of the manufacture, sale, resale, and consumption of alcoholic beverages, which is a very significant factor of the hospitality industry.
The hospitality industry is hugely dependent on the support from the local as well as national governmentsas there are various laws and regulations which are required to be implemented by these entities for ensuring that the companies in this industry are able to sustain the various socio, geo, economic factors as well as the competitive pressure. The role of the government for the promotion of the travel and tourism industry, which is the feeder industry for the hospitality industry is also immense (Frank, 2013). Following are few of the projects which are carried out by the government of the country with the intention of developing tourism as well as the hospitality industry in its region:
- Defining the various areas and zones in the country which requires development of hospitality as well as tourism facilities through detailed analysis of the limitations of the area as well as the spatial potentials of the same;
- Carrying out a detailed analysis of the prevailing infrastructure in the various areas and zones in the country;
- Defining the concept of development in view of the number of the consumers which the hospitality industry is trying to target as well as the market segment which it will be catering to
- Deciding on the optimal physical layout for the facilities for accommodation as well asthe other features which are offered through the same;
- Evaluation as well as ranking of investors and operators who are interested;
- Collection of letters of intent;
- Signing the contract, provisions which is related to the necessary permits and project documentation;
- Start of the construction.
AC2.1 An assessment of the staffing requirements of different hospitality industries
The staffing requirements for the different hospitality industries are unique to the nature of the sub industry in which the recruitment is being done. Due to the nature of the intangible services which are tendered by the industry to the customers of it, the importance of the fitment of the skill set of the employees as well as the jobs which they are required to do is very important as fat as the hospitality industry is cornered. Hence the process, as well as the requirements of the hospitality industry recruitment, is also very unique. The staffing process for this industry is done for catering a wide range of service areas in spite of requiring and approach which is fairly specific to the customer specific needs and requirements. The requirement for the staff of different hospitality industries which required the candidates are placed on the position of the senior-level and hotel managing role, maintaining the hotels, resorts, restaurants, clubs, spas, casinos, convention facilities, campus/university dining services, food service companies, and other areas which are included in the hospitality industry. Some of the key positions in the hospitality industry for which staffing requirements of different hospitality industries are as following:
- Restaurant Managers
- Captains & Stewards
- Chefs & Cooks (All Cuisines)
- Event Managers
- F & B managers
- Finance & Accounts
- Front Office
- General Managers
- Guest relations
- Heads of Departments
- House Keepers
- Maintenance & Engineering
- Room boys
- Sales & Marketing
- Travel Related services
Some of the key aspects which are needed to be considered at the time of finalizing the staffing requirement in the hospitality industry are as following:
- Designing a good advertisement for recruitment at the hotels.
- Questioning techniques anchored in the behavioural factors for conducting the interviewswith the purpose of recruiting hotel employees.
AC. 3.2 An discussion of the current image of the industry
Travel and tourism industry has a very strong image in the overall business scheme in the global scenario. Due to the strong growth as well as the way the industry has been able to manage through the difficult times of financial depression, the image of the industry has also become significantly better. Due to the immense importance of the impact of the hospitality industry for overall global economy and in spite of the varied geopolitical instabilities, the development of various new concerns over health as well as the lack of growth in the economy of few regions, the global industry of the hospitality has been able to thrive through cycles of accelerated growths in addition to having optimism prevailing in a number of global markets. On a global level, the total number of jobs which are generated by the travel and tourism industry is as much as 266 million. This industry also contributes almost one tenth of the total global gross domestic product (GDP). The industry is poised to grow at a rate of 4 per cent for the year 2015. Hence it can be said that the sector will be more and more recognized as one of the most important drivers of economic growth at the global, regional and local levels.
This section of the report will try to demonstrate the understanding of this writer on the topic of the changes which are instrumental in affecting the contemporary hospitality industry. The themes which will be looked into through this study are:
- It analysis the issue which is relating to the operation, managerial and legislative issues through which the there is recent developments affecting the hospitality industry
- A justification of predicted for the new future trends and also given for the developments in hospitality
- Analysis the affect of predicted trends and developments
AC. 3.1 An analysis of operational, managerial and legislative issues resulting from recent developments affecting the hospitality industry
There are various operative, managerial and legislative issues resulting from recent developments which are being faced by the hospitality industry. The biggest operational challenges which are being faced by the companies involve the shortage of trained labour as well as constraint on the cost aspect. Both of these issues as well as their impacts can be identified in various geographically diverse industries which also leads to severe issues for the expansion of the hospitality industry as a result of the lack of human resources management. A labour force which is shrinking is the most significant challenge in front of the international hospitality industry. Also for the reason that the industry is increasingly pressed to reduce costs with keeping very high quality standard for meeting guest expectations, the companies are being expected to do more with less. This is also a significant operational challenge (Grönroos, 2006).
As far as the managerial challenges are concerned, the biggest challenge which is being faced by the companies in the current state of the industry is developing a profile of the customers which is very important for the successful implementation of the marketing sector and communication activities of the companies in this industry. This has been especially happening due to the diverse nature of the customers to whom the bigger hospitality companies are catering these days. In view of the fact that the hotels these days try to provide excellent and customized guest service the companies constantly strive to learn more regarding their guests through gathering and mining data. However this process poses significant challenge for the companies in view of the fact that the existing information systems which are used in these companies are not capable of recording such data as well as analysing them with the purpose of developing various trends and statistics regarding the customer trends (Edvardsson, 2008).
As far as the legislative issues are concerned, for the hospitality industry most of them are directed towards the preservation of the environmental factors which are affected through the daily operations of the hospitality industry. Since the luxury options and operations of the hospitality industry tend to take up a lot of resources including the water, electricity etc. Hence there are various legislations which have been implemented by the respective national governments for preserving these factors (Lusch, 2007). These are also creating a lot of challenges for the companies as they are expected to provide service to the consumers without compromising on their service levels. This is fairly difficult to provide through working under such constraints. So it is very difficult and very challenging for the recent development which affect the hospitality industry.
AC 4.1 A justification of predicted future trends and developments in hospitality
The future trends and developments which are expected for the hospitality industry is a steady growth. It is expected that during the near future the global hospitality sector will be growing further. One of the major reason for this can be the strong appetites of the investors and the convenience of creative as well as flexible capital sources for this industry which will be able to lead to a trend of hotel acquisitions which will in turn increase the demand for the same. Also the lodging markets which have been dormant so far are expected to gain traction in view of the fact that investor groups are finding increasing opportunities for gaining higher returns in these emerging submarkets as well as secondary locations. Also the use of the technology has been able to change the course of the industry and it is expected to grow even more through continuous evaluation of the hoteliers and customers on the return of the customer investment by taking living experience. Use of technology can be shown a as a very valued and valid point which can justify the kind of growth that has been predicted for the industry (Lusch, 2007).
AC 4.2 An impact analysis for the predicted trends and developments
The predicted trend and development for the industry says that the customer preference is changing with the advent of new set of consumers. The teenagers are very interested in discovery, exchanging, and get new experience and they are willing to pay for these. These people try to find unique as well as novel experiences and this will command the changes for this industry. Technology will also positively impact the industry given that it will be able to streamline a lot of processes for the companies which is also used by the customers for seek for information. There are various updated customer which are interested in using the new technology which is done manually like check in at hotels, shopping, by paying at restaurant, other bar bills etc. The instant use of Twitter, Facebook, or TripAdvisor also have given them the option of expressing their opinions as well as complaints against the companies within no time. All of these will impact the future trends of this industry significantly (Edvardsson, 2008).
Edvardsson, B. & Enquist, B. (2008). Values-based Service for Sustainable (Business Lessons from IKEA). Routledge, London
Grönroos, C. (2006). Adopting a Service Logic for Marketing. Marketing Theory, 6(3), 317-333.
Joe, T & Frank, M. H. (2013) “SERVICE INNOVATION Organizational Responses to Technological Opportunities & Market Imperatives”, Imperial College Press, London.
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Kale, P., Dyer, J. & Singh, H. (2001). Value creation and success in strategic alliances: alliancing skills and the role of alliance structure and systems. European Management Journal, 19 (5), 463-471.
LUSCH, R.F., VARGO, S.L. & MALTER, A.J. (2006). Marketing as Service-Exchange: Taking a Leadership Role in Global Marketing Management. Organizational Dynamics, 35 (3), 264-278.
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