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): ...................................................... 5

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

3. Task-2: ................................................................................................................................... 5

3.1 Key classification system and standards (P2): ..................................................................... 5

3.2 Analysis of grading and classification system (M2): ........................................................... 6

4. Task-3 (P5 and P6): ............................................................................................................... 7

4.1 Operational areas of organisation: ....................................................................................... 7

4.2 Analysis of organisational structure: ................................................................................... 7

5. Task-4: ................................................................................................................................... 7

5.1 Roles of different departments (P4): .................................................................................... 7

5.2 Role of different departments in established Hotel (M3): ................................................... 8

5.3 Improvement recommendations (D2): ................................................................................. 9

6. Conclusion: ............................................................................................................................ 9

List of references...................................................................................................................... 10

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1. Introduction
There are different industries operating all around the world to facilitate and fulfil the key
demands and requirements of human kind. Hospitality industry plays vital role among other
industries due to provision of services to fulfil the necessities of human kind such as food,
travel, accommodation, and events. The catering services provide strength to hospitality
industry by attracting the customers for delicious food and beverages. According to the
forecast report for hospitality industry presented by Claveria et al. (2015), it is proven that
there are very high opportunities available in hospitality industry that will ultimately increase
the number of customers. 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 Convent Garden
hotel, The Milestone Hotel, and Holiday Inn London operates in commercial sector, whereas
catering service sector included Sodexo Prestige, Holy Smoke and Mid Summer house.
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,
Convent Garden Hotel and Milestone Hotels are also rated as a 5 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 Convent Garden hotel is decorated by using the aged wood
furniture. (British Hospitality Association, 2015).
Beside the commercial hospitality sector, there were three key businesses were selected for
catering service sector. The Midsummer house is operating with current turnover of £1.1
million, whereas it is capable of providing verities of quality food and beverages to
customers. Similarly, Holy Smoke restaurant provides Italian cuisines to customers and

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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).

Figure 1: Six key hospitality industry outlets

(Instituteofhospitality.org, 2015; British Hospitality Association, 2015).

2.2 Different ways and structure of business (M1):

Due to expansion of services and increasing demands of customers, the hospitality industry is
facing massive changes in last few years. Also, majority of hospitality organisations are
facing challenges due to advancement of technology, whereas key competition is assessed in
terms of their capabilities to adopt technology and customer satisfaction. Many hospitality
organisations are getting benefits by adopting these sustainable changes such as adoption of
technology, modern strategies and others. The creation of purchasing turnover is defining the
actual scale of business in hospitality industry, whereas it varies in commercial and service
sector of hospitality industry. 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).

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2.3 Assessing scale and scope of these organisations (D1):
There is great potential available for hospitality industry in United Kingdom, but different
scopes and scales of business are affecting the services and products offered by the
organisation. 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. Majority of people are considering the healthy and fresh organic food due to
health consciousness. This is the reason that majority of businesses in hospitality industry are
affected. 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. (Albert and Colin, 2015).

2.4 Organisational structure and staffing: (P3)

The commercial hotels have large and well defined organisational structure, whereas variety
of workers are required to efficiently complete their operations such as reception staff,
accountants, marketing staff, waiting staff, room porters, dishwasher, cook, junior staff,
chefs, and other staff members. (Chang et al., 2011). The structure of commercial hotels in
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).

3. Task-2:
3.1 Key classification system and standards (P2):
The classification system is commonly used for rating the amenities and services provided by
the hospitality business such as customer experience, cuisine, and accommodation.
(Mohammed et al., 2015). The classification system and standard ratings are determined to
increase the awareness of people about specific hospitality business. There are six different
types of classification systems are commonly used in hospitality industry such as Michelin
star, British tourist authority, Egon Rony, Gault Millau, Fork and Knifes, and Star S. The
Michelin Star is providing ratings for restaurants, whereas hotels are provided with different

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ratings such as A3, A2 and A1. The British tourist authority is also rating the hospitality
business in terms of diamond rating such as AA symbols and Five Star. The international
quality standards define the highest quality standards equivalent of five star ratings.
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).

Figure 2: Classification system and rating standards (Nunez-Serrano et al., 2013).

3.2 Analysis of grading and classification system (M2):

The classification and grading systems have high impact on customers, whereas proper
evaluation and consideration of rating is done by customers before selecting services from
any hospitality business. The deputy manager identified that national tourist board is only
providing AA rating to highest service provider hotels in United Kingdom. The other
hospitality businesses are given low stars due to lack of amenities and comfort. (Nunez-
Serrano et al., 2013). Similarly, Michelin stars are 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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4. Task-3 (P5 and P6):
4.1 Operational areas of organisation:
The Hotel London are 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
Italian restaurants in London, whereas key strength will be achieved by Hotel London by
providing Italian cuisine to their customers. The deputy manager also identified that different
techniques are essential for preparing the Italian 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 Hotel London.

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
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):
There are different roles played by different departments in organisation such as human
resource management, marketing, customer service, financial assessment, health and safety.
The budget management is key for all types of hotel businesses, whereas London hotel will
be efficiently managing all the prices of food and products. Also, hotel management will be
efficiently calculating the profit through their efficient finance department. The main
objective of organisation is based on making profit through efficient services, whereas

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customer service department plays vital role for building an efficient environment for hotel to
attract more customers. They are also responsible for managing the complaints, conflicts, and
improvement of services. This department is required to adopt polite communication,
empathy and care factors during their operations. (Chen, 2013).
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).

Figure: Different departments (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,
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

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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):

The improvement of operation and services requires proper assessment of services, whereas
recommendations and suggestions of customers also help in improving the products and
services in hospitality industry. There are different standards defined by government bodies
and external agencies that also help in improving the services such as health and safety rules
by FDA, risk management and quality management. The recommendations can be achieved
from thorough assessment of services and products. (Ashrafi et al., 2013).

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

 Claveria, O., Monte, E., & Torra, S. (2015). A new forecasting approach for the hospitality
industry. International Journal of Contemporary Hospitality Management, 27(7).
 British Hospitality Association, (2015). British Hospitality Association (BHA). Available
from: http://www.bha.org.uk/ [Accessed on 14th September. 2015].
 Instituteofhospitality.org, (2015). Institute of Hospitality. Available from:
http://www.instituteofhospitality.org [Accessed on 15th September. 2015].
 Chon, K. S., Barrows, C. W., & Bosselman, R. H. (2013). Hospitality management education.
Routledge.
 Albert, M. and Colin, C. (2015). “Understanding corporate philanthropy in the hospitality
industry.”International Journal of Hospitality Management, 48, pp.150-160.
 Chang, S., Gong, Y., & Shum, C. (2011). Promoting innovation in hospitality companies
through human resource management practices. International Journal of Hospitality
Management, 30(4), 812-818.
 Watson, T. (2013). Management, organisation and employment strategy: new directions in
theory and practice. Routledge.
 Mohammed, I., Guillet, B. D., & Law, R. (2015). The contributions of economics to
hospitality literature: A content analysis of hospitality and tourism journals. International
Journal of Hospitality Management, 44, 99-110.
 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.
 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.
 Hoque, K. (2013). Human resource management in the hotel industry: Strategy, innovation
and performance. Routledge.
 Chen, W. J. (2013). Factors influencing internal service quality at international tourist hotels.
International Journal of Hospitality Management, 35, 152-160.
 Ashrafi, A., Seow, H. V., Lee, L. S., & Lee, C. G. (2013). The efficiency of the hotel industry
in Singapore. Tourism Management, 37, 31-34.

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