THE HOSPITALITY INDUSTRY

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 Table of Contents

1. Introduction ........................................................................................................................ 3

2. Task-1 .................................................................................................................................... 3

2.1 Identification of six hospitality outlets (P1): ....................................................................... 3

2.2 Different ways and structure of business (M1): ................................................................... 4

2.3 Assessing scale and scope of these organisations (D1): ...................................................... 4

2.4 Organisational structure and staffing: (P3) .......................................................................... 5

3. Task-2: ................................................................................................................................... 6

3.1 Key classification system and standards (P2): ..................................................................... 6

3.2 Analysis of grading and classification system (M2): ........................................................... 7

4. Task-3 (P5 and P6): ............................................................................................................... 8

4.1 Operational areas of organisation: ....................................................................................... 8

4.2 Analysis of organisational structure: ................................................................................... 8

5. Task-4: ................................................................................................................................... 9

5.1 Roles of different departments (P4): .................................................................................... 9

5.2 Role of different departments in established Hotel (M3): ................................................... 9

5.3 Improvement recommendations (D2): ............................................................................... 10

6. Conclusion: .......................................................................................................................... 10

List of references...................................................................................................................... 11

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1. Introduction
Hospitality is the relationship between guest and host, or the act or practice of being
hospitable. Specifically, this includes the reception and entertainment of guests, visitors, or
strangers, resorts, membership clubs, conventions, attractions, special events, and other
services for travellers and tourists. Businesses that provide transitional or short-term lodging,
with or without food are defining the hospitality industry such as Hotel, motels, inns, or
others. The hospitality industry consists of broad category of fields within the service
industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise
line, and additional fields within the tourism industry. Hospitality also means providing
services and welcoming strangers without expecting anything in return. This report is
analysing the scope, scale and structure of hospitality industry. This report also requires
assessment as deputy manager for analysing the key performance of different hospitality
outlets. Also, assessment and recommendations are presented for newly developed hotel.

2. Task-1

2.1 Identification of six hospitality outlets (P1):

This assignment requires from the deputy manager to identify the key hospitality outlets
operating in United Kingdom, whereas major consideration is required to analyse their
facilities, ownership and services provided in United Kingdom. The categorisation was made
on the basis of operations in commercial and catering service sector. The Euro hotel,
Travelodge Hotel, and Holiday Inn London operates in commercial sector, whereas catering
service sector included Sodexo Prestige, Sahara Grill and Charsi Tikka. Among the selected
organisations, Holiday Inn London provides wide range of facilities including conference
rooms, lodging, quality food, and other leisure services. The hotel is privately owned and is
currently operating with total turnover of £5.32 million. Similarly, Euro Hotel and
Travelodge Hotels are also rated as a 4 star hotels, whereas both these hotels are capable of
providing quality rooms and food of international standards. Both these hotels are also known
in hospitality industry for promoting the local culture through different events, whereas prices
are also very cheap as compare to other hotels in London. (British Hospitality Association,
2015).
Beside the commercial hospitality sector, there were three key businesses selected for
catering service sector. The Sahara Grill is privately owned restaurant providing Indian and
Pakistani food, whereas it is capable of providing verities of quality food and beverages to

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customers. Similarly, Charsi Tikka restaurant provides Pakistani cuisines to customers and
operates in London. Both these restaurants provide different blends of taste for customers,
and provides quality environment in the form of events. On the other hand, different contract
catering companies are also operating in hospitality industry such as Sodexo Prestige. The
company is recognised for providing best services including hard and soft services to
customers. The company is capable of providing passionate catering services and operates
with total turnover of £500 million in UK and Ireland. (Instituteofhospitality.org, 2015).

2.2 Different ways and structure of business (M1):

The service in both these sectors varies such as commercial hotel sector provides high class
meeting, lodging, conferencing and banqueting services to customers. On the other side,
restaurants are only providing the quality environment including different tasty blends of
food and beverages to customers. The restaurants operate on small scale, whereas hotels
operate on high scale. Also, the diversity is limited in restaurant sector, whereas hotel
businesses manage high level of diversity for their customers. Mainly hotel industry is
operating with 3 to 7 star ratings, whereas restaurants are operating with ratings ranging
between 2 and 3 stars. (Chon et al., 2013). Moreover, hotels are complying more legislations
and standards as compared with restaurants. The commercial sector is required to adopt
efficient Corporate Social Responsibility strategies, whereas restaurants are less considering
these ways during their operations. The structure of hotel is wisely planned by the HR
department, whereas restaurants are mainly recruiting naive workers to perform basic
functions in restaurant.

2.3 Assessing scale and scope of these organisations (D1):

Majority of residents in UK are fond of visiting restaurants and hotels, whereas it defines the
high scope of hospitality industry. Also, scope of hospitality industry is depending on the
lifestyle of people which is immensely changed due to technological advancement. The
deputy manager identified that restaurants are attracting specific range of customers to
provide specific blend of ethnic and organic food, whereas hotels consider diverse customers
from all around the world. The hotels adopt proper differentiation strategies to categorise
different types of customers to support the scope and scale of hospitality industry. (Weng and
Wang, 2004). The size of scope of hospitality industry consists of different types of
organisations such as serviced and non serviced accommodation, private and public sector,
trade association, education and professional and voluntary organisation.

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 Figure 1: Size and Scope of hospitality industry (Weng and Wang, 2004).

2.4 Organisational structure and staffing: (P3)

The structure of commercial hotels is defined on the basis of different departments such as
administration, finance, marketing, food, front office, and housekeeping department. The
restaurant service sector is having limited organisational structure due to provision of only
food services. The structure of organisation is directly related with internal and external
factors, whereas supplier and employee management are highly influencing the structure of
organisation. (Watson, 2013). Food & Beverage department deals mainly with food and
beverage allied activities such as Speciality Restaurants, Coffee Shop (24hrs), Bar, Banquets,
Room Service etc. Housekeeping is responsible for cleaning the hotel's guestrooms and
public areas. This department has the largest staff, consisting of an assistant, room inspectors,
room attendants, a house person crew, linen room attendants and personnel in charge of
employee uniforms. (Gu et al., 2012).
The front office is the command post for the reservations, registering guests, take in charge of
guest accounts (cashiering/payment), checking out guests. Food production department
handles with the preparation of food. Basically, it is their responsibility to prepare dishes or
menus which are ordered by guest. The marketing department is responsible for packaging of
selling, sales promotion,, advertising and public relations. The marketing divisions are
charged with the responsibility of keeping the rooms in the hotel occupied at the right price
and with the right mix of guests. The security of guests, employees, personal property and the
hotel itself is an overriding concern for today's hoteliers. In the past, most security
precautions concentrated on the prevention on thefts from guests and the hotel. (Gu et al.,
2012).

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 Figure 2: Basic structure of commercial hospitality outlet (Gu et al., 2012).

3. Task-2:
3.1 Key classification system and standards (P2):
Most countries have a grading system for offered accommodation, and this generally follows
a 5 star grading scheme, with one being the lowest and five being the highest. In the United
Kingdom (UK) a number of organisations provide rating systems for the hospitality industry.
This includes:

 AA - Automobile Association inspects restaurants for the quality of their food.

 Visit Britain - National and regional tourist boards provides diamond rating such as
AA symbols and Five Star.

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  Michelin - including the 'world-renowned' restaurant and chef grading provides A3,
A2 and A1 ratings for restaurants and hotels.
 RAC - Royal Automobile Club

Similarly, there are different food critics that give ratings for different hospitality businesses
such as Egon Rony and Gault Millau. The ratings are provided in 1 to 5 star and 1 to 20
respectively. There are also some letter based rating systems for hospitality businesses such
as Star S and A to F star rating system. (Nunez-Serrano et al., 2013).

3.2 Analysis of grading and classification system (M2):

The hospitality grading systems are designed to fulfil a number of different needs. Five of the
most important are:

 Standardisation: to establish a system of uniform service and product quality that

helps to create an orderly travel market distribution system for buyers and sellers
 Marketing: to advertise travellers on the range and type of hotels available within a
destination as a means of promoting the destination and encouraging healthy
competition in the marketplace
 Consumer protection: to ensure that the hotel meets minimum standards of
accommodation, facilities, and service within classification and grade definitions
 Revenue generation: to provide revenue from licensing, the sale of guidebooks, and so
forth
 Control: to provide a system for controlling general industry quality (Ramanathan,
2012).

The Michelin system is providing different rating to different types of businesses such as 5
star for super luxurious services, 4 star for first class comfort, 3 star for comfort, 2 star for
standard hotels, and 1 star for tourist. The Michelin star rating is commonly used all around
the world for international ratings, whereas British tourist board is used for national
hospitality businesses. The researchers have confirmed that reputation of hospitality business
is depending on its high rating because customers are always checking the rating before
selecting the hospitality services and products. (Ramanathan, 2012).

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 Figure 3: Classification and grading by using star rating system (Ramanathan, 2012).

4. Task-3 (P5 and P6):

4.1 Operational areas of organisation:
The Xiamo Hotel is about to start their business and it is important for the deputy manager to
analyse and research the market in hospitality industry. There are very limited numbers of
Continental restaurants in London, whereas key strength will be achieved by Xiamo Hotel by
providing continental cuisine to their customers. The deputy manager also identified that
different techniques are essential for preparing the continental cuisines, whereas quality of
customer care is important for providing good food and beverage service to customers. Also,
newly developed hotel will be providing front house service and accommodation service to
large number of customers. As deputy manager, it was identified that customer ethics and
care is important to get good ratings for different operations of Xiamo Hotel. (Boella and
Gross Turner, 2013).

4.2 Analysis of organisational structure:

The newly developed hotel is consisting of very strong organisational structure including
chief executive director, operational manager, administrative manager, finance manager,
kitchen manager, store manager, chefs, service crews, and dish washers. The organisational
structure is also commonly known as hierarchical structure in hotel industry, whereas it also
defines the responsibilities and duties of each employee in organisation. In addition,
organisation holds equality strategy by providing equal opportunities to all employees for
enhancing their competence, skills and performance. The chefs are also recruited very extra
care because good quality food plays vital role for increasing the rating of hotels and

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restaurants. The hotel also adopts the total privacy and confidentiality policy for securing the
personal information of employees. Also, efficient crew members will be available to serve
foods, whereas kitchen and room porter team will be managing the supply of goods.
(Tavitiyaman et al., 2012).

5. Task-4:
5.1 Roles of different departments (P4):
The organisation is incomplete without the efficient fulfilment of functions from its
departments, whereas different roles and duties are performed by departments in
organisation. The front office staffs are responsible for efficiently interacting with all the
departments of organisation such as HR department, security, maintenance, controller,
banquet, food/beverage, housekeeping, financing, marketing, sales, and purchase department.
The efficient communication is important between all these departments, whereas front office
acts as communication liaison for provision of all services in hotel. The hotel also manages
proper records for their customers that are further used by the marketing department for
promoting the services and products of their organisation. The marketing, sales and purchase
departments are operating on the basis of customer information such as special requirements,
corporate affiliation, visit frequency, and post code of customers. The reception department
plays important role to welcome the guests and record all the requirements during their stay.
(Ramanathan, 2012).
The profit can only be achieved by attracting more customers in hotel, whereas marketing
department plays vital role for attracting the customers. They are responsible for conducting
the market research, PESTLE analysis, SWOT analysis, competitor analysis, and service
innovation strategies. The human resource department plays important role in organisation by
efficiently managing important activities such as employee training, appraisal, and
recruitment. The human resource management is also responsible for managing the shift rota
for employees, whereas they will be efficiently monitoring the performance of employees.
(Hoque, 2013).

5.2 Role of different departments in established Hotel (M3):

All the departments of any established hotel are performing efficient role to achieve the
organisational goals and objectives. The success of any hotel is depending on efficiency of
key organisational departments such as administrative department, finance department,

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marketing department, front office desk, housekeeping department, and food and beverage
department. The hotel London will consider the example of Holiday Inn London hotel for
managing the operations in departments, whereas major emphasis will be made for achieving
the organisational objectives. The majority of departments will function as normal, but HR
department will be additionally managing the innovation of services and products in London
Hotel. (Ashrafi et al., 2013).

5.3 Improvement recommendations (D2):

All the departments in Holiday Inn hotel are efficiently performing their duties and
responsibilities under their well developed leadership and management framework. There are
key departments that strengthen the services of Holiday Inn London such as administration,
finance, marketing, front office, housekeeping, and food/beverage departments. The Xiamo
Hotel is newly developed hotel, but it needs to adopt the operational practices used in
Holiday Inn hotel. All the departments must be connected with each other through strong
communication mechanism, whereas HR department must play important role for conveying
the organisational message to all employees. Also, all employees must give their best efforts
to perform their duties and to achieve all the objectives and aims of Xiamo Hotel. (Riley,
2014).

6. Conclusion:
The hospitality industry plays vital role by providing efficient accommodation and food
services and products to large number of customers. This report was analysing the hospitality
industry in terms of diversification, market size, business, and organisational structure. This
report was also highlighting the importance of scope and scales defined in the hospitality
industry. The key scope was defined for efficient management of customers and suppliers.
This report was also highlighting different rating and grading system used in the hotel and
restaurant businesses. The Michelin star rating is commonly used all around the world for
international ratings, whereas British tourist board is used for national hospitality businesses.
This report was also defining the structure of organisation, whereas role of different
departments defined the actual efficiency of organisation for achieving the organisational
goals and objectives.

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List of references

Boella, M., & Goss-Turner, S. (2013). Human resource management in the hospitality
industry: A guide to best practice. Routledge.
British Hospitality Association, (2015). British Hospitality Association (BHA). Available from:
http://www.bha.org.uk/ [Accessed on 19th September. 2015].
Chon, K. S., Barrows, C. W., & Bosselman, R. H. (2013). Hospitality management education.
Routledge.
Gu, H., Ryan, C., & Yu, L. (2012). The changing structure of the Chinese hotel industry: 1980–
2012. Tourism Management Perspectives, 4, 56-63.
Hoque, K. (2013). Human resource management in the hotel industry: Strategy, innovation
and performance. Routledge.
Instituteofhospitality.org, (2015). Institute of Hospitality. Available from:
http://www.instituteofhospitality.org [Accessed on 18th September. 2015].
Núñez-Serrano, J. A., Turrión, J., & Velázquez, F. J. (2014). Are stars a good indicator of
hotel quality? Assymetric information and regulatory heterogeneity in Spain. Tourism
Management, 42, 77-87.
Ramanathan, R. (2012). An exploratory study of marketing, physical and people related
performance criteria in hotels. International Journal of Contemporary Hospitality
Management, 24(1), 44-61.
Riley, M. (2014). Human resource management in the hospitality and tourism industry.
Routledge.
Tavitiyaman, P., Qiu Zhang, H., & Qu, H. (2012). The effect of competitive strategies and
organizational structure on hotel performance. International Journal of Contemporary
Hospitality Management, 24(1), 140-159.
Watson, T. (2013). Management, organisation and employment strategy: new directions in
theory and practice. Routledge.
Weng, C. C., & Wang, K. L. (2004). Scale and scope economies of international tourist hotels
in Taiwan. Tourism Management, 25(6), 761-769.

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