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Contemporary Hospitality Industry 2015

Table of Contents
1.1) Analyse the current scale, scope and diversity of the hospitality industry. [M1] ..... 4
Introduction....................................................................................................................... 4
Current Scale of the hospitality industry ............................................................................ 4
Current Scope of hospitality industry................................................................................. 5
Current diversity in the hospitality industry ....................................................................... 5
Conclusion ........................................................................................................................ 6
1.2) Discuss the organizational structure of different hospitality organizations............... 7
Introduction....................................................................................................................... 7
Organizational Structure of a Hotel ................................................................................... 7
Organizational Structure of a normal Restaurant ................................................................ 9
Organizational Structure of a Motel ................................................................................. 10
Conclusion ...................................................................................................................... 10
1.3) Assess the role of hospitality related organizations and professional bodies. [M2] 11
Introduction..................................................................................................................... 11
Role of World Tourism Organization (UNWTO)............................................................. 11
Role of Nepal Tourism Board (NTB) .............................................................................. 11
Role of World Travel and Tourism Council (WTTC) ...................................................... 12
Role of British Hospitality Association (BHA) ................................................................ 12
Role of Civil Aviation Authority of Nepal (CAAN) ........................................................ 12
Role of Restaurant and Bar Association of Nepal (REBAN) ............................................ 13
Role of Hotel Association of Nepal (HAN) ..................................................................... 13
Conclusion ...................................................................................................................... 13
2.1) Assess the staffing requirements of different hospitality industries. ........................ 15
Introduction..................................................................................................................... 15
Skilled/ Semi-skilled/Unskilled Staffs ............................................................................. 15
Supervisory Level Staffs ................................................................................................. 16
Managerial Level Staffs .................................................................................................. 16
Apprentices ..................................................................................................................... 16
Management Trainees ..................................................................................................... 16
Foreign Workers ............................................................................................................. 17
Volunteers ....................................................................................................................... 17

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Conclusion ...................................................................................................................... 17
2.2) Discuss the roles, responsibilities and qualification requirements for hospitality
staff. ................................................................................................................................... 18
Introduction..................................................................................................................... 18
a) General Manager ...................................................................................................... 18
 Roles and Responsibilities ................................................................................. 18
 Qualification...................................................................................................... 19
b) Chef de cuisine ..................................................................................................... 19
 Roles and Responsibilities ................................................................................. 19
 Qualification...................................................................................................... 19
c) Housekeeper ............................................................................................................. 20
 Roles and Responsibilities ................................................................................. 20
 Qualification...................................................................................................... 20
d) Receptionist .......................................................................................................... 20
 Roles and Responsibilities ................................................................................. 20
 Qualification...................................................................................................... 21
e) Accountant ............................................................................................................... 21
 Roles and Responsibilities ................................................................................. 21
 Qualification...................................................................................................... 21
Conclusion ...................................................................................................................... 21
3.1) Analyse operational, managerial and legislative issues resulting from recent
developments affecting the hospitality industry. [D1]................................................... 23
Introduction..................................................................................................................... 23
Operational Issues ........................................................................................................... 23
 Standard Operating Procedure ........................................................................... 24
 Employee expectations ...................................................................................... 24
 Flexible working ............................................................................................... 24
Managerial Issues ............................................................................................................ 25
 Quality Assurance and Control .......................................................................... 25
 Relationship with Education/Training Providers ................................................ 25
Legislative Issues ............................................................................................................ 26
 Copyright and Licensing .................................................................................... 26
 Minimum Wage................................................................................................. 26

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Conclusion ...................................................................................................................... 26
3.2) Discuss the current image of the hospitality industry. [M3] .................................... 28
Introduction..................................................................................................................... 28
From the perspective of an investor ................................................................................. 28
From the perspective of a family ..................................................................................... 29
From the perspective of a business traveller..................................................................... 29
From the perspective of the employees ............................................................................ 29
From the perspective of the government .......................................................................... 30
From the perspective of the students ................................................................................ 30
Conclusion ...................................................................................................................... 31
4.1) Present justified predictions for potential trends and developments in hospitality. .
[D2] 32
Introduction..................................................................................................................... 32
Space Tourism ................................................................................................................ 32
Budget hotels and travels ................................................................................................. 33
Increasing use of Information Technology ....................................................................... 33
Healthy Organic Foods .................................................................................................... 34
Ecotourism ...................................................................................................................... 34
Dark Tourism & Adventure Tourism ............................................................................... 34
Conclusion ...................................................................................................................... 35
4.2) Produce an impact analysis for the predicted trends and developments. ................ 36
Introduction..................................................................................................................... 36
Impact Analysis for Space Tourism ................................................................................. 36
Impact Analysis for Budget Hotels and Budget Travels ................................................... 37
Impact Analysis for Increased use of Information Technology ........................................ 37
Impact Analysis of Organic Foods ................................................................................... 38
Impact Analysis of Ecotourism ........................................................................................ 38
Impact Analysis of Dark Tourism and Adventure Tourism .............................................. 38
Impact Analysis of Rise in Senior Tourism ...................................................................... 39
Conclusion ...................................................................................................................... 39
Bibliography ...................................................................................................................... 40

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1.1) Analyse the current scale, scope and diversity of the hospitality industry. [M1]

Introduction
The term ‘hospitality’ refers to providing care and respect to the guests. In the past,
hospitality industry was limited to providing accommodation and food and beverage services
to the guests however, the industry has grown in recent times and it includes range of other
activities such as entertainment, gaming, tour guide assistance and relevant services. With
development of the industry the scale has grown as well and at present its presence can be felt
globally. Moreover, it can be seen in range of industries otherwise irrelevant to hospitality
operations. The reach of the industry can be observed in majority of places in the society such
as colleges and hospitals where an operator of the canteen is involved in the action of
providing hospitality. Similarly, the industry has grown significantly and is rich in diversity
and includes people from various backgrounds of the society. The diversity can be seen in the
employees as well as the customers the businesses cater to. Therefore, at present, the reach of
the industry is far, it is diverse and the operations have grown to incorporate varieties of
activities besides food and beverage.

Current Scale of the hospitality industry


The scale of the hospitality industry is growing and is expected to grow even further in the
future. According to VisitBritain [2013], Britain will have a tourism industry worth over
£257 billion by 2025 – just under 10% of UK GDP and supporting almost 3.8 million jobs,
which is around 11% of the total UK number. Globalization has resulted in chain and
franchise ownerships all over the world and the presence of the hospitality industry can be
strongly felt. The profits generated from the institutions can be huge and instant which has
increased the investment into the sector. Therefore, the size of the industry has increased
significantly, the result of which can be seen in the increased contribution of the industry
towards the economy of the nation. Currently, the presence of the industry can be felt in
almost all the sections of the society. Hospitals and colleges though separate from the
industry are involved in some form of operations related to hospitality through functioning of
canteens and cafeteria. Even personal homes today are beginning to participate in the industry
as the trends for homestays and home visits are on the rise.

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Current Scope of hospitality industry
The scope of the hospitality industry has broadened and it no longer is limited to providing
accommodation and food and beverage.

Fig 1.1: Scope of Hospitality and Tourism Industry. [Walker and Walker, 2012].

As interesting new tourism activities have developed, new hospitality operations have been
initiated with it. Hotels, restaurants, pubs, bars and nightclubs, hospitality services,
membership clubs and events are some of the areas where the industry has been active. The
scope of the industry has expanded to include gaming and entertainment activities at present.
Theme parks, water parks, golf courses, castles and home-stays are some of the recent sectors
which have significantly broadened the scope of the industry.

Current diversity in the hospitality industry


Numbers of people from different background of the society come into the hospitality
industry for employment. ‘New workforce will include diverse and different people in terms
of race, culture, age, gender, and language and that the increasing diversity of workforce and
social life in the U.S. will dramatically affect organizational life in the twenty-first
century‟[Csaba, 2013]. Organizations nowadays, promote diversity in staffs as it can create
friendly environment and help serve the guests better. Diversity can be seen in customers as
well because due to globalization and increased use of hospitality related organizations,
guests from different backgrounds of the society regularly visit the institution. The

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development of ethnic restaurants and services is on the rise as demand is high and majority
of people of the local community are turning into consumers. Diversity in customers can be
observed even in Nepal, where a well operated restaurant or a hotel is bound to have people
from different nationalities and ethnicities within the nation. Furthermore, the diversity in
customers and workforce has attributed to diversity in foods and services offered by a
business in the industry.

Conclusion
In conclusion, hospitality industry is rapidly growing and expanding which has vastly
increased its scale and scope and resulted in diversity within the industry. With globalization
and increased travels, businesses have grown in the industry and its presence can be felt
strongly worldwide. The hospitality sectors are major contributor towards the economy of a
nation and its role in the overall economy is growing. The scope of the industry has
broadened and it includes various aspects of the society at present. Even private homes today
are participating in hospitality businesses as trends for homestays is emerging and the
industry also incorporates cafeterias and canteens run in hospitals, hostels and colleges. The
operations of the industry are no longer limited to accommodation and food and beverages
only and now it includes number of activities such as gaming, recreation and visits. The
growth and extension of the industry has also created diversity among visitors and in
workplace.

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1.2) Discuss the organizational structure of different hospitality organizations.

Introduction
There are different organizations within the hospitality industry each of them different in size,
nature, operational way and available capital. The size and the nature of the business along
with other factors determine its organizational structure and it’s different for every
organization in the industry. The organizational structure of an institution helps allocate tasks
and responsibilities among various designations and allows for easy co-ordination and control
to effectively achieve the aim of the business. Generally, an organization is categorized into
different departments each with their own function and the staff in each department is divided
into various designations each with their own responsibilities. This helps avoid confusion and
establishes control and supervision for efficient performance. For instance, a hotel is divided
under different departments such as front office, housekeeping and food and beverage and
staffs in each department are positioned under different designations with different
responsibilities. The staffs in the hotel may be designated into managerial level staffs,
supervisory level staffs and operational level staffs. The same organizational structure is
impractical for a restaurant, because the size of the operations is comparatively less and the
nature is different. The supervisory level staffs are limited in a restaurant or are completely
absent. Furthermore, the organizational structure of a motel is limited because limited
numbers of people are tasked with majority of responsibilities.

Organizational Structure of a Hotel


A hotel is divided into number of departments such as rooms division, housekeeping and
food and beverage and the organizational structure for each department is different because
the functions of the departments are different. The chart below illustrates the organizational
structure of rooms division in a hotel.

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Rooms Division
Manager

Executive House
Front Office Keeper
Manager Security/Loss
Prevention

Front Assistant Contract Laundry


Deskt Executive Cleaning Manager
Cashiers Housekeeper
Communic
ations Laundry
Reservation
Staff
Floor
Concierge Supervisor

Am/Pm
Shift
Group/Conv Uniforms
Night Business Houseke Housem Supervisor
ention
Audit epers en
Individual

Fig 1.1: Rooms Division Organization Chart [Walker and Walker, 2012].

Rooms division in a hotel is responsible for fulfilling the accommodation needs of a


customer. The organizational structure of rooms division in a hotel can be clarified from the
chart above. As shown in the chart, rooms division manager heads the rooms division
department and under him are front office manager, security/loss prevention and executive
housekeeper who lead their own department. The three departments are separate and there are
number of staffs in each department under different designations. The head of the
housekeeping department after the executive housekeeper is the assistant executive
housekeeper under who are floor supervisor and housekeepers respectively. Laundry manger
heads the laundry staffs and uniforms supervisor and contract cleaning is a separate
department in the housekeeping department. Similarly, security and loss prevention is a
separate department and there are no designations. Likewise, the front office manager heads
the front office department, and under him are front desk, reservation, cashiers, concierge and
communications. Concierge is further divided into business department and finally, the front
desk heads the am/pm shift and night auditor.

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Similar to the rooms division department the food and beverage department in a hotel has
distinct organizational structure and the staffs are classified under different designations
carrying specific responsibilities. Food and beverage manager heads the department followed
by assistant food and beverage manager. Under him is the chef followed by cooks, servers,
busboys and kitchen steward respectively. Furthermore, a hotel might have the administrative
department and the maintenance department each of which has different responsibilities and
distinct organizational structure.

Organizational Structure of a normal Restaurant


The organizational structure of a normal restaurant basically consists of the food and
beverage department because unlike hotels the room division department is absent. The
organizational structure of a simple restaurant can be determined by the assessment of the
restaurant management career ladder given below.

Regional Manager

General Manager

Assistant General Manager

Closing Manager

Opening Manager

Server/Bartender

Assistant Kitchen Manager

Cook

Kitchen Prep

Host-Busser-Server (during College)

Kitchen Steward

Fig 1.2: A Restaurant Management Career Ladder [Walker and Walker, 2012]

The above career ladder of a restaurant helps us determine the organizational structure of a
normal restaurant. A regional manager is the head of all the organization followed by the
general manager who is the head of the particular restaurant. He is then followed by assistant
general manager, closing manager and opening manager respectively. In the order of
hierarchy, then come server/bartender, assistant kitchen manager, cook, kitchen prep and part
time host/busser/server respectively followed by kitchen steward. The organizational

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structure of a restaurant is simple compared to a hotel because the nature of business is
different and the size of the operation is substantially smaller.

Organizational Structure of a Motel


The organizational structure of a motel is limited as most of the motels are self operated and
the need for the employee is minimal. Generally, an owner works himself and hires 1 or 2
additional workers to assist him in the operations. The limited numbers of workers are
responsible for all the tasks of the organization, and therefore, they themselves form and
represent the overall organizational structure of the motel. It can be thus deduced that the
organizational structure of an institution is dependent on the variability of responsibilities of
the staffs and lower the size of the operation, smaller the organizational structure.

Conclusion
In conclusion, there are number of hospitality organizations in the industry and the
organizational structure of each of them is different. The organizational structures depend on
the nature and size of the operations and a hotel, restaurant and motel have distinct
organizational structures. A hotel has number of departments and the structure of each of the
department is different because of the specific functionality of different departments.
However, it should be noted that the hierarchy and designation in all the departments are
similar and structure can be distinguished into managerial level, supervisory level and
operational level staffs. A general manager holds the highest position followed by respective
rooms division and food and beverage mangers. They are followed by subsequent managers
of different departments and then by supervisory level staffs and operational level staffs. The
organizational structure of each of the departments, combine together to form the overall
organizational structure of a hotel and it can be complex. However, the organizational
structure of a restaurant is simple and limited to food and beverage operations only.
Furthermore, the organizational structure in a motel is limited and is represented by the small
number of employees that work in the institution.

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1.3) Assess the role of hospitality related organizations and professional bodies. [M2]

Introduction
Hospitality industry is a growing industry and its importance to the society is crucial as it
contributes towards major portion of economy of a nation. As any other industry, it needs
support, supervision and guidance and there is number of organizations and professional
bodies, national and international, which helps the industry to grow and develop further.
World Tourism Board and World Travel and Tourism Council are international organizations
which maintain oversight to the hospitality industry worldwide and help them grow globally.
British Hospitality Organization supervises and promotes the industry in the United Kingdom
and helps them grow in the region. Similarly, Nepal Tourism Board, Civil Aviation Authority
of Nepal, Restaurant and Bar Association of Nepal and Hotel Association of Nepal are the
professional bodies located in Nepal and works with the institutions inside the country. The
above organizations directly or indirectly help the businesses in the hospitality industry, and
works closely with them for further developments.

Role of World Tourism Organization (UNWTO)


World Tourism Organization is an international organization made up of number of countries
that is responsible for supervision and promotion of tourism worldwide. It is crucial in
promoting responsible, sustainable and accessible tourism globally. WTO promotes tourism
as a driver of economic growth, inclusive development and environmental
sustainability and offers leadership and support to the sector in advancing knowledge and
tourism policies worldwide. [UNWTO, no date]. UNWTO further assists in economic
development, international understanding, human rights and peace all over the world and
helps decrease the negative impacts of tourism in the environment.

Role of Nepal Tourism Board (NTB)


Nepal Tourism Board is a government organization and is responsible for promotion and
supervision of the tourism sectors in the country. The Board provides platform for vision-
drawn leadership for Nepal‟s tourism sector by integrating Government commitment with the
dynamism of private sector. NTB is promoting Nepal in the domestic and international
market and is working toward repositioning the image of the country [Nepal Tourism Board,

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no date]. It is responsible for increasing the number of tourists flow into Nepal, increasing
the overall revenue from tourism and provides consistency in the tourism sector. It was a
crucial organization in developing plans for Visit Nepal 97 and Visit Nepal 11 where it
worked with number of different institutions in the industry which was vital in promoting
Nepal as a tourist destination in international community.

Role of World Travel and Tourism Council (WTTC)


World Travel and Tourism Council is a crucial organization in travel and tourism industry
which is made up of members from worldwide business community. Its primary role is to
conduct research on social and economic impact of the travel and tourism industry in the
world. The data WTTC publishes based on its research is extremely helpful to nations and
private individuals to assess the impact of the industry and draw conclusions.

Role of British Hospitality Association (BHA)


British Hospitality Association is a non-government professional body in Britain for number
of institutions operating in the hospitality industry. The body is responsible for hotels, bars,
restaurants and other hospitality related organizations and is an old establishment. As
mentioned in an annual report published by BHA, „our role is to promote the interests of
operators, brands and owners across hotels, restaurants and food service, serviced
apartments, clubs and visitor attractions. Together our vision is to shape the future of
hospitality and tourism as a driver for international competitiveness, economic growth and
valuable careers – to ensure British hospitality and tourism is the best in the world‟ [BHA,
2014]. It is extremely active in the Britain and is responsible for creating new jobs, driving
competitiveness in the industry, intermediating with the government and encouraging eco
tourism.

Role of Civil Aviation Authority of Nepal (CAAN)


Civil Aviation Authority of Nepal is also a government organization which is responsible for
regulating air traffic in the country and building airports and infrastructure around the nation.
CAAN has been set up with the objective of making aviation safe, regular, standard and
efficient. Its prime goal is to ensure flight safety and sustainability of civil aviation. It has the
responsibilities of constructing, operating and maintaining airports. Besides, it has also to
equip the airports with necessary communications and navigational facilities [CAAN, 2013].
Airports and airplanes are crucial to the hospitality industry as Nepal is a tourist based
country and the organization helps bring the tourists from abroad. However, in recent times,

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the inability of CAAN to perform well and develop necessary infrastructure that is safe has
had negative impact in the hospitality industry.

Role of Restaurant and Bar Association of Nepal (REBAN)


Restaurant and Bar Association of Nepal is an association of different restaurants and bars
operating within the nation. It brings different food and beverage outlets of Nepal under one
roof and is responsible for organizing number of food festivals from time to time. Therefore,
it helps in giving exposure to number of businesses that work in the food sector. It also
safeguards the right of the employees in the sector and makes sure that illegal activities are
forbidden. It protects children from labour and assures appropriate payment of employees.

Role of Hotel Association of Nepal (HAN)


Hotel association of Nepal is an organization comprised of different hotels operating within
the nation. Similar to REBAN, it ensures proper operations in the hotels within the nation. As
mentioned in their website, it has helped its members grow in their business by maintaining a
high profile with governments, developing strategic and innovative marketing programs,
creating networks, voicing their concerns and providing current industry information and
resources [HAN, 2010]. It helps promote hotel industry and protects their lawful rights and
also investigates and helps in solving the problems faced by its members. Moreover, it
provides training and education in the sector and encourages good relationship and
understanding between the employer and the employees. The organization is pivotal in
nurturing, developing and advancing the hotel industry in the country.

Conclusion
In conclusion, there are number of organizations and professional bodies in Nepal and abroad
that supervises guides and supports the operations and development of hospitality industry.
The organization and professional bodies may directly work with institutions in the industry
or its participation maybe indirect but nevertheless it is helpful for advancement of the
industry. WTO is an international organization and helps promote responsible, sustainable
and accessible tourism globally whereas NTB is a national governmental organization and is
responsible for supervision and promotion of tourism in the nation. BHA is an old
organization and operates in Britain and is responsible for the growth and improvement of the
industry in the region. Moreover, CAAN is responsible for maintenance of air safety and
building of airports and infrastructure which is crucial to bring the tourists in to the nation.

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Similarly, REBAN supervises and promotes the restaurants and bars in Nepal whereas HAN
is responsible for promotion, supervision and improvement of the hotels in Nepal.

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2.1) Assess the staffing requirements of different hospitality industries.

Introduction
Hospitality industry at present employs vast number of people across different designation
with varying roles and responsibilities. The industry is growing and the staffing requirement
is likely to grow significantly in the future. Unskilled, skilled and semi-skilled staffs are
uniformly required to ensure business performance and similarly managerial, supervisory and
operational level needs to be filled for smooth uninterrupted operations. The blend of the staff
should be appropriate so that work load is properly divided and responsibilities should be
distinctly segregated. An institution in hospitality industry should hire right amount of
apprentices, management trainees, and foreign workers and use volunteers in order to
increase the efficiency of performance and guide the staffs for future reference. It also is
necessary to ensure diversity in the employees by hiring staffs of all the backgrounds which
allows representation from all the backgrounds and promotes culture in the workplace.

Skilled/ Semi-skilled/Unskilled Staffs


The staffs required in the industry may be skilled, semi-skilled or unskilled and all are
equally important to an organization in the industry. Unskilled manpower is required to carry
out laborious tasks in the organization whereas the task performed by the skilled manpower is
technical and helpful in enhancing the strategies and increasing the efficiency of all the
workers. As mentioned by Baum T. [2002], ‘the hospitality sector is a case environment for
the consideration of skills in services. Despite its low status, it is one of the fastest growing
sectors in the economy of the United Kingdom, and faces real challenges in matching its
skills requirements to the changing labour market in this country and elsewhere.‟
Housekeepers and kitchen stewards can be considered to be unskilled staffs whereas cooks
and receptionist can be considered to be semi-skilled staffs. Similarly, general manager,
engineers, accountant and executive chef are the skilled staffs in the hospitality industries.
Supply and hire of all the staffs, skilled or unskilled, is necessary to ensure optimum
performance of job in all the sections of the departments in the organization.

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Supervisory Level Staffs
Supervisory level staffs acts as a conduit between the management and the operational level
staffs and are integral part of the organization in hospitality industry. They help implement
plans and policies formulated by the management and provide guidance and supervision to
the operational level staffs. They further provide assistance to the operational level staffs and
produce their performance review and submit them to the management. Therefore, they help
in regulating performance by the operational level staffs and also aid in the overall
management process. At present, it is a major staffing requirement to hire appropriate number
of supervisory level staffs to ensure better performance of the business.

Managerial Level Staffs


Managerial level staffs carry out the management activities in a firm and they are responsible
for planning, decision making process and establishing proper control in the organization.
Selection of operational way and construction of policies to guide all the staffs are some other
important function of the managerial level staffs. Housekeeping manager, lobby manager,
front office manager, food and beverage manager and event manager are some fine examples
of managerial level staff that has emerged in the industry and an institution should make sure
that the positions are available and adequately occupied.

Apprentices
„Apprenticeship is a means of learning for work which has been used successfully since the
Middle Ages. The term has entered the language to describe the process of learning new and
valuable skills from a seasoned professional. Today the UK has almost 250,000 apprentices,
and they are learning everything from social care to plumbing.‟ [Fuller and Unwin, 2008].
An organization should include apprentices in their staff team because it allows the
apprentice to develop their skills and can be beneficial to an organization in the future as the
skill of the workers in the work environment is bound to increase. It is also less costly for an
organization to hire apprentices for their daily operations and ensures further advancement of
the industry.

Management Trainees
Management trainees are the trainees who work under the managerial level staffs and are the
future manager of the industry. Including management trainees in the staffing allows an
organization to effectively train individual for management level jobs and is crucial for their
development. It helps an institution produce quality managers in the future and eventually

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helps in the overall growth of the industry. While staffing an organization should make sure
that there are positions for management trainees and it is occupied properly with the right
individuals.

Foreign Workers
It may not always be possible for a nation to produce skilled or unskilled workers required for
the operations in the industry. As written by Peacock Louisa [2012], in an article in the
Telegraph, „hotel chain Malmaison and Hotel du Vin has joined the growing list of employers
warning that UK job applicants are unemployable because they lack basic skills, with most of
its jobs taken up by foreign workers.‟ Therefore, an institution in the hospitality industry
should make sure that proper foreign workers with appropriate skills are constantly acquired
and hired in the institution for assurance of uninterrupted business performance. Foreign
workers aid in the economy of the nation but nevertheless, the industry should make sure that
they are not capturing the majority of employment opportunity in the nation.

Volunteers
Volunteers offer their services for free and therefore at times can be cost effective to an
organization. A business in the hospitality industry should include volunteers in its staff team
temporarily, from time to time, because it may promote enthusiasm and help in activities
relating to community service. Furthermore, it presents a volunteer with invaluable
experience opportunity and is helpful in enhancing the image of the organization in the
society.

Conclusion
In conclusion, hospitality industry is growing at a rapid pace and consequently creating
employment opportunities in the society. The staffing requirement of the industry has risen
along with its growth and now it requires number of workers to fill up varieties of position
with distinct roles and responsibilities. It is a staffing requirement of the industry to fulfil
number of its operational, managerial and supervisory level designations with several skilled,
unskilled and semi-skilled workers. Furthermore, inclusion of management trainees,
apprentices, volunteers and foreign workers in the staffing team is on the rise and can be
extremely beneficial for an organization in the industry.

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

Introduction
The number of staffs employed by the hospitality industry is huge and they each have distinct
roles and responsibilities depending on their job position. A staff in a hospitality organization
may be designated into managerial level staff, supervisory level staff and operational level
staff. Managerial level staffs are basically responsible for planning and decision making for
the efficient performance of the business whereas supervisory level staff are responsible for
providing guidance and support whenever necessary. Operational level staffs are responsible
for carrying out normal operations which is essential for performance and sustenance of the
business. The work done by the operational level staffs requires physical labour whereas the
work performed by managerial level staffs requires mental pressure. All three levels of staffs
are important nonetheless and in absence of one, business cannot aspire to carry on. It should
be noted that generally, the qualification requirement for managerial level staff is higher
compared to the other two. The sum of roles and responsibilities and the qualification
requirements depends on the particular designation of the staff in the industry. The roles,
responsibilities and qualification requirements of some of the staffs in the industry are
described below.

a) General Manager
General Manager is the head of the management and is responsible for all the management
activities. Most of the institutions do not use the term general manager and give different
titles such as CEO or the president.

 Roles and Responsibilities


The roles and the responsibilities of a general manager of a hotel can be determined from the
job description of Sunburst Hospitality Corporation. As per the job description general
manager is responsible for creating operating environment that assures consistent guest
satisfaction, monitors the performance of the hotel, maintains products and services quality
standard, develops financial objectives, prepares financial reports, maintains community
support and public affairs involvement, plans and organizes the work of the employee and

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ensures proper safety practices for employees as well as guests. [Sunburst Hospitality
Corporation, 2004]. There are many other responsibilities of a general manager that aids in
planning and decision making and the nature of the job and position is such that he gets credit
for all the right things and should also be liable for all the wrong things in the organization.

 Qualification
At present, an undergraduate degree is a must to be a general manager in the hospitality
industry and graduate degree is a plus. Besides having educational qualification, a general
manager should have leadership skills, should communicate effectively, should be able to
multitask and should be able to co-ordinate the resources appropriately.

b) Chef de cuisine
Chef de cuisine is a French word, meaning the chief of the kitchen and is generally called
chef. He is very skilled in food production and is an expert cook of number of varieties of
items from all over the world. A chef can be differentiated in the kitchen as they wear a
cylindrical long hat called toque.

 Roles and Responsibilities


The basic roles and responsibilities of a chef are to prepare food and maintain the kitchen.
However, he may need to carry out number of other supervisory, administrative and safety
functions. A chef is responsible for overseeing all works of the kitchen and planning menu
and special items. He also needs to address and handle all the complaints related to food and
needs to oversee the subordinates. Moreover, he creates recipes and ensures performance
from the staffs in food and beverage department. Lastly, he is tasked with training the new
hires and is responsible for regulating safety in food preparation [Exforsys 2006]. Chefs in
the today’s society are respected highly and being a chef can be an accomplishment.

 Qualification
Chefs are required to study Bachelor in Hotel Management and should have extensive
practice and knowledge about food preparation. A person may become a chef alternately
through years of experience, apprenticeships and vocational schools as well. However, being
a chef is not an instant process, earning the tile of the chef takes time and a cook earns the
title after years of experience and knowledge on a particular specialty. The kitchen can be
extremely difficult when busy and a chef should be able to work properly in fast paced and

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pressure working environment. They should have good co-ordination skills and should be
physically fit and be able to stand for number of hours while working.

c) Housekeeper
Housekeeping is the largest department in the hotel and is responsible for hiring the highest
number of employees among all the departments. It is a major part of the accommodation
service and is responsible for pleasant and comfortable stay of the guests

 Roles and Responsibilities


The position of a housekeeper is an operational level position and the primary responsibility
of a housekeeper is to clean the guestroom and maintain decor. They might additionally need
to stock supplies that have run out and are responsible for changing linens, towels and bed
sheets in a hotel. Moreover, they should make sure that a room is in a presentable condition
and should carry out small maintenance activities if required. Lastly, they should co-ordinate
with other departments and transfer guest complaints and requests to the respective
departments.

 Qualification
Housekeepers do not need educational qualification but they need to be fluent in English and
should be able to communicate well. At present the need for training by the housekeeper is
rising and organization give priority to those housekeepers who are well trained or
experienced. Additionally, as it is a laborious job, housekeepers need to be physically fit
should have enough strength to lift heavy items.

d) Receptionist
Receptionists welcome the guests and are first point of contact between the organization and
the customer. Therefore, it is necessary for receptionists to know their roles and
responsibilities and an organization should make sure the receptionists they hire are skilled
and qualified for the job.

 Roles and Responsibilities


The basic responsibility of the receptionist is to greet and welcome the guests and answer
their queries. They also need to handle telephones and messages and should make sure guest
complaints are dealt with. Furthermore, they are tasked with opening guest accounts and
maintaining guest transactions. They might also need to register the guests and take necessary
reservations.

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 Qualification
Generally, there is no educational qualification requirement for receptionists as long as they
speak good English and have good communication skill but however, organizations prioritize
over someone with at least a diploma. Receptionists need to have computer and word-
processing skills, clerical skills including telephone skills and knowledge of administration
policies, systems and procedures [Manuhiri, 2015]. In hospitality industry receptionists are
responsible for entering and maintaining transaction records of the guests, therefore, they
should have basic knowledge of accounting and should be able to post transactions into guest
accounts.

e) Accountant
Like any other industry, financial transactions occur in the hospitality industry and an
organization should be able to evaluate its performance through various statements and
reports, preparation and assessment of which requires qualified accountants.

 Roles and Responsibilities


An accountant in the industry should track and verify every transaction that occurs in the
normal course of business operation. He is also responsible for calculating and record
keeping employee payments and payouts in the form of wage and salaries and should handle
and regulate taxes. Additionally, he requires preparing monthly and yearly reports on profit
and loss accounts and balance sheets of the firm which is helpful in assessing the position of
the firm. Aiding the management in budgeting and collection of unpaid revenue are another
important function of the accountant in hospitality industry.

 Qualification
To become an accountant one should pursue an undergraduate degree in accounting or related
field. Operators today give priority to those who can use the software for accounting and
auditing process. The prospect of accounting in hospitality industry is on the rise because the
industry is growing financially and the revenue generated is increasing year by year.

Conclusion
In conclusion, there are number of staffs that are employed in hospitality industry and their
roles, responsibilities and qualification requirements are different which is dependent on the
nature and function of their job. General Manager is the leader in an organization and they
are responsible for planning, decision making and management activities. One should at least

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complete an undergraduate degree and have experience to be a general manager. Chef if the
head of the kitchen and is responsible for running and guiding the employees in the kitchen.
Becoming a chef can be time consuming as one needs years of experience as a cook to
eventually become a chef. Similarly, housekeepers are tasked with cleaning, stocking and
maintaining the rooms to bring it to a presentable condition to a guest. One does not need
formal education but must be strong physically fit and should have good communication skill
to be a housekeeper. Moreover, receptionist welcomes the guests and performs number of
key operational tasks in the industry and one should be fluent, well spoken, good looking
with good personality to be a receptionist in the industry. Lastly, the use of accountants in the
industry is on the rise for report generation and record keeping activities and one should
complete at least bachelor’s degree on accountancy to be an accountant.

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3.1) Analyse operational, managerial and legislative issues resulting from recent
developments affecting the hospitality industry. [D1]

Introduction
Hospitality industry is evolving and there are number of developments in the sector which
can be challenging to an organization and present it with number of issues. The issues created
due to the recent developments might be operational, managerial or legislative and an
organization has to adapt itself and find out ways to deal with it. The institutions in the
industry at present are more focused on providing consistent services to the guests, which
requires implementation of standard of procedures. Similarly, the expectation of the
employees has risen and they demand flexible working hours. These developments have
created several operational issues in the industry and the management should be able to
analyze the issues so that they can better prepare themselves for uninterrupted operations.
From the managerial point of view, customer’s today demand quality products which
mandate quality assurance and control. Likewise, to get constant and sustained flow of skilled
manpower an institution today must have good relationship with educational sectors related
to the industry and with training providers. Furthermore, newer and better laws are being
introduced for the benefit of the industry and the welfare of their staffs and an institution
must make sure that they comply with the existing laws such as copyright and licensing and
additionally should make sure that the minimum wage requirements of its employees are
being properly met. Failure to comply with the prevailing law can be problematic to an
institution and its proper compliance in itself may present an organization with number of
issues.

Operational Issues
The enhanced image of the industry and its continual improvement has attracted number of
employees and students in to the industry. However, the skill requirement has risen
considerably and the demands of the staffs have increased with it. Similarly, the increased
opportunity and rise in customers has made sure that companies remain customer-centric
which consequently has resulted in new policies and ways to better satisfy the customers. An
institution today must make sure that it has proper Standard of procedure and control

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mechanisms so that the services provided are consistent and the performance is efficient.
These recent developments though beneficial can present an organization with number of
operational issues and an organization should devise ways to deal with the issues.

 Standard Operating Procedure


Due to customer-centric approach in sectors of the industry, institutions nowadays have to
provide consistency in services which necessitates development and implementation of
Standard of Procedures. They provide employees with written guidelines to carry out their
operations so that consistency in services can be achieved. However, there can be number of
operational issues for proper implementation of the SOPs. Employees in the present market
environment constantly change employment from one firm to another and it can be a
challenge for an organization to implement its SOPs and change the operational way of its
staffs. The standards of a hotel should allow successful functioning in the intensive-work
activities where personnel changes are common and frequent. This prevents the disruption of
processes and subprocesses due to recognized practitioners and experts. [Svorcan, 2013].
Therefore, it can be difficult to properly follow SOPs for an employee and for the
management to implement it which can present an organization with operational difficulties.

 Employee expectations
The expectation of the employees has significantly increased and their individual demands
have grown over the years. It is a challenge for businesses in hospitality industry to find the
right employees for the right position and most of the firms find it extremely hard to occupy
its lower level positions. Students in hotel management showed less interest for operational
and lower level hospitality jobs, but their interest increased for higher level positions such as
assistant manager and management trainee. Additionally, graduates were more interested in
short term financial gains or training and experience and almost half the graduates had no
idea or plan for their future career prospects. [Kusluvan S., 2003]. Inability of the firms to
find the right staff in the right position due to exceeding expectations of the prospective
employees is a major cause of operational issue in the industry.

 Flexible working
People today are busy and due to inflation they must work in number of sectors in the
industry to support themselves and their primary goal such as education. They demand
flexible working hours to be able to work around their schedule of education or child caring.
It can be a problem for an organization to accommodate to the schedule of its workers and at

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times can create operational barrier when most of the workers are unavailable for particular
timings due to their prior commitments.

Managerial Issues
The problems created due to the recent developments in hospitality industry are not only
limited to operational ways but can affect the management of the institution as well. The
demand for quality products is increasing and requirement of skilled manpower is on the rise
and therefore it can be a challenge for the management to assure and control quality and
nurture good relationship with educational institution and training providers.

 Quality Assurance and Control


The demand for quality products is increasing and customers today give utmost priority for
the quality in the product as well as the services offered. A customer definition of quality is
much broader. First, customers are concerned with the quality of the physical product- its
durability, safety, ease of use, and installation. Secondly, customers are concerned with the
quality of service, by which they mean the accuracy and truthfulness of advertising,
responsiveness, and ongoing service support. Finally, customers‟ concept of quality includes
psychological aspects: the company‟s knowledge of its products, the courtesy and sensitivity
of sales and support staff, and the reputation of the product [Russell, 2003]. It can be very
difficult for the management to assure and control the quality of the product. Furthermore,
due to the nature of perishability of products in the industry, controlling its quality and
preserving its freshness is a major issue for the management in the industry.

 Relationship with Education/Training Providers


Due to enhanced image and prospect of the hospitality industry the requirement of skilled
manpower is on the rise and constant flow of skilled human resource is a major issue in the
industry at present. Management should make sure that the relationship with educational
institutions and training providers is good so that skilled people can be frequently hired for
better job performance. However, due to limitation in the educational institution and training
providers, building relationship with them can be a challenge and is a prime issue for the
management in the industry.

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Legislative Issues
There are number of laws applicable to the institution in hospitality industry and newer laws
are constantly being introduced to safeguard the right of the employees. Knowledge and
compliance of the existing laws can be hard and is an issue for the operators in the industry.

 Copyright and Licensing


With enormous increase in number of the institution in hospitality industry, copyright laws
are being applied vigorously and are a major issue in the sector. Use of copyright items such
as design, layout and SOPs without knowledge is problematic and is a major challenge for
institutions to safeguard its copyright items. Similarly, ignorance of licensing is a major issue
in the industry which might have substantial legal implications in the future for the
institution. To protect the public and employees, food services face a host of licensing
requirements at the federal, state and local levels. Some of the major food hospitality
business licenses and permits for establishing a business entity in the industry are obtaining
tax registration numbers, general business licenses, food safety and safety license, location-
based permits, occupancy and alarm permits, liquor license and relevant entertainment and
broadcast licenses [Fitzpatrick Diana, n.d.]. Organizations today in hospitality industry must
make sure that copyright laws are not being breached and proper licensing has been obtained
for the operations, adherence of which can be a challenge.

 Minimum Wage
An operator in the industry should make sure that its employees earn minimum wage and
should have good knowledge of the laws relating to the minimum wage requirements. In the
UK, as per the data published by Citizen Advice [2015], the minimum wage for workers aged
21 and over is £6.50 per hour, for worker aged 18-20 it is £5.13 per hour, for workers aged
16 and 17 the current rate of pay is £3.79 per hour and for apprentices the rate of pay is
£2.73 per hour. Complying with the minimum wage laws can be a major issue when the
business performance is not good and its non-compliance by the institutions is a major
problem for the society at present.

Conclusion
In conclusion there are number of developments in the hospitality industry at present which
affects it positively and negatively. To achieve consistency, preparation and implementation
of Standard of Procedures is on the rise and employee expectation has increased and they
further demand flexible working hours. Furthermore, the need for quality by consumers is

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increasing and the requirement of skilled manpower is growing. Additionally, number of laws
such as copyright laws, licensing requirements and minimum wage is being introduced and
vigorously applied in the sector. These developments present an institution with number of
operational, managerial and legislative issues. Following SOPs of a particular institution can
be hard as staffs today constantly change work and due to increased employee expectations
organizations are finding it hard to occupy their lower level job positions. Similarly, rise in
demand of flexible working hours causes number of operational issues in the industry due to
unavailability of staffs in the preferred timings. Furthermore, management have challenges to
assure and control quality of the products and the services and maintaining good relationship
with educational institutions and training providers is a problem as their number is less.
Lastly, an organization has to face legal issues in using copyright items and obtaining proper
license for the operation. They also have to make sure that minimum wage requirement of
their employees is being met, non-compliance of which can be fatal.

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3.2) Discuss the current image of the hospitality industry. [M3]

Introduction
Globalization and advancement in technology has made travel more accessible and affordable
which has resulted in significant growth of the sectors in hospitality industry. The industry is
a major contributor for the national as well as global economy which has played a vital role
in enhancing the overall image of the sector because it provides opportunities and facilities
for different members of the society. The prospect of the industry is growing in Nepal and the
country bears tremendous potential for further developments resulting in massive interest and
contribution from vast members of the community. In order to accurately determine the
current image of the hospitality industry among the population we need to first analyse the
image towards the industry from the perspective of the individual members of the society.
The perception towards the industry from the perspective of a business operator is bound to
be different from that of the guests who use the services. Similarly, the image from the
viewpoint of a student, employees and government should be assessed separately to give us
an accurate representation and determination of overall final image.

From the perspective of an investor


In today’s world of chain and franchise ownership, investors see hospitality industry as a
good sector for financial investment because the return on investment can be tremendous. As
per the statistics given by www.statista.com [2015],‟ the global hotel industry was forecasted
to generate 550 billion U.S. dollars in revenue in 2016. The hotel company contributing the
most to this figure was the British hotel chain InterContinental Hotels Group which in 2013,
made 21.6 billion U.S. dollars in over 4.600 hotels worldwide.‟ Therefore, the image of the
industry from the perspective of the prospective investors is really good as the profits can be
realized faster and in huge amounts. Investors today do not shy away from investing large
amounts into luxurious hotels and high end restaurants because of the increasing demands.
Not only can it be a viable option for present investment but it also can be profitable for
future sales because of the rapidly increasing value of the real estate.

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From the perspective of a family
Contrary to few years back, families today visit hotels and other sectors of the industry more
frequently which can be attributed to improved economy and changing trends. Families are
spending significantly more and visit restaurants for dining experience and hotels on holidays
whenever possible. Furthermore, in Nepal, hotels and similar venues has become prime
destination for major events such as marriages and anniversaries. Hosting events on hotels
and party palaces makes it much easier and also gives them a sense of class. Therefore, the
image of families towards the hospitality sector has been positive and locals are turning into a
consumer which is good sign for improved business performance of the sectors in the
industry.

From the perspective of a business traveller


A business traveller is defined as “a traveller whose expenses are paid by the business he
works for” [Pender, 2005]. Globalization and improved distribution networks have made it
compulsory for businessmen to travel more often within and outside the country. Business
travellers require specific needs such as conference hall, computer equipments, office
supplies, language translators and therefore hotels and related institutions has started giving
priority to fulfil the specific demands of the business travellers. They often find their
requirements being met properly and consequently have good image towards the industry.
These days, business travellers, use hotels frequently over a long period of time and often
arrange their meetings in a restaurant, hotel or any such establishment of their choice as they
find it convenient. As per my observation and experience, in Nepal, most of the business
deals are agreed upon in an establishment related to hospitality industry in one way or
another.

From the perspective of the employees


Hospitality industry provides employment for large number of members of the community
and gives them a means for livelihood. According to the statistics published by Tourism
Alliance [2014], „the UK tourism industry employs 3.1m people and is the UK‟s third largest
employer accounting for 9.6% of total employment.‟ People often find their hard work being
rewarded appropriately as even a simple employee through dedication and labour can climb
the ranks and can do well for himself. Not only do employees seek the industry to find a
means for livelihood but they also use the industry as a good source of part time job. Students
and aspiring actors most of the times work as a waiter or a hostess in the industry to support

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their education or their primary goal. The image towards the industry from the viewpoint of
employees is mostly positive as most of the people at point or another in their life work in the
industry to sustain themselves.

From the perspective of the government


The hospitality industry is a major contributor to the economy of the country and therefore
has positive perception from the government. Governments devise various programs such as
Visit UK and Visit Nepal programs in lieu with different sectors of the industry in order to
promote tourism and increase the flow of tourists. The contribution from the industry towards
the overall economy of the nation is growing and is crucial for national economic prosperity.
The role of tourism in the overall economy is only bound to grow and will be crucial for
national development in the future. According to the research published by Rochelle Turner
[2015], „the direct contribution of Travel & Tourism to GDP was NPR83.7bn (4.3% of total
GDP) in 2014, and is forecast to rise by 5.4% in 2015, and to rise by 4.4% pa, from 2015-
2025, to NPR135.7bn (4.8% of total GDP) in 2025.‟

GDP of Nepal, 2014 GDP of Nepal, 2015


4% 5%
Travel and Travel and
Tourism Tourism
Other Other

96% 95%

Fig1.1: GDP of 2014 Fig1.2: GDP of 2015

[Rochelle Turner, 2015]

From the perspective of the students


In context of Nepal, the image of industry among the students is good and the students are
beginning to see it as a major path for career development. Compared to the past, students
today are heavily pursuing studies related to the field and major colleges around the city offer
different hospitality related courses. Students are attracted to the field because of tremendous
untapped potential Nepal has in the sector as well as due to practical benefits it possesses

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abroad. Students see themselves as future investors and managers in the industry, and
therefore pursue education which would provide them with desired outcome. The future of
the industry in Nepal looks good and can have significant improvements in upcoming years.

Conclusion
In conclusion, hospitality industry is growing nationally as well as globally and with it, the
image of the people towards the industry is improving as well. Investors have positive
perception towards the industry as they are beginning to invest heavily and see it as a good
sector for major investment. The continuing rise of chain and franchise ownerships, presents
investors with good prospect for entrepreneurship whereas students see it as a major sector
for career development and are pursuing related studies due to immense potential it has for
the future. It is a major contributor towards the economy of the country and therefore
government seek its continual development and devise various plans for tourist attraction for
enhanced business performance of the sectors. Similarly, employees view it as an
employment opportunity and make their livelihood through the industry. It also provides with
part time opportunities and assists students as well as people from other field to support their
primary aim. Furthermore, the image from the families is improving as major events are
being frequently held in various institutions in the industry and businessmen find it
appropriate for their purposes. The future for the industry looks bright and is bound to serve
various members of the society through opportunities or through rendered services.

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4.1) Present justified predictions for potential trends and developments in hospitality.
[D2]

Introduction
The taste and preference of the people change over time which might be attributed to various
factors such as rapid technological advancements, new innovative ideas, improvement in
economic conditions, increased health consciousness and realization of environmental
impacts of human practices. The change in taste and preference in addition with innovative
ideas to attract more customers brings about change in trends and gives rise to new
developments in the sectors of the hospitality industry. The ongoing trends is likely to evolve
over time and new trends are bound to be formed which will have significant impact on the
industry in the present as well as in the near future. Institutions in the industry should be able
to adapt itself according to the changing demand of the customers which necessitates new
improvements and practices. Conduction of research and study of customer buying behaviour
and its evolution allows industry to determine and anticipate the change and gives them tool
to bring about new ideas and developments. Leap in technological innovation and
engineering improvements has made space tourism possible and is likely to develop in the
future. Similarly, concepts of budget hotels and travels are emerging and people are leaning
towards organic foods. Use of social media for marketing purposes and use of mobile apps by
the consumers is on the rise and people are more inclined towards environmentally
sustainable tourism and are interested in dark and adventure tourism as well. Furthermore,
there is significant increase in the number of old tourists and investors are more interested
towards the development of mega-hotels.

Space Tourism
Ever since humans walked the earth, they have looked at the stars in amazement and have
thought about the possibility of space travel and writers as early as the eighteenth century has
been writing fictions about the subject. Technological advancement at present has made it a
reality and companies are starting to fund projects for commencement and expansion of space
tourism. As written in the magazine, Science Illustrated, Australia [2013], „the era of space
tourism began in April 2001, when American businessman Dennis Tito travelled to the

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International Space Station. Tito paid approximately US $ 20 million for his 7 days and 22
hours in space.‟ Space travel at present is expensive and remains a luxury, however,
advancements in fuel technology and demands is likely to bring the price down in the future.
People are bound to travel the space just for once in a lifetime experience and companies
such as SpaceX and Virgin Atlantic under Richard Branson, an English billionaire, are
heavily investing into space technology in order to make space tourism a viable option in the
near future.

Budget hotels and travels


The fundamental principle of budget hotels and budget travels is to sell in masses while
lowering the profits. The power of the mass can be enormous and a small profit gained from a
limited group is always far lesser than the overall profit gained from the crowd. The practice
of budget hotel and travel is growing. As quoted by Harry Douglass, a senior associate at
lodging consulting and research supplier at HVS mentioned in the article by Michael Baker
[2013], „budget hotels can allow people staying a night before or after a meeting or event,
whereas before, these people had to make day trips to avoid accommodation costs.‟ Airlines
are starting to introduce more and more economic classes which have directly resulted in
increased flow of the tourists as people are enticed to travel more often. In context of Nepal,
as practices of budget hotels and travels is growing, local people in the community are
frequently using the services and are turning into major consumers for the industry. If a hotel
offers services for cheap, more people are likely to visit the establishment and the profit
gained can be large on the long run due to eventual accumulation of small individual profits.

Increasing use of Information Technology


Today’s age is the age of the information technology and both companies as well as
consumers use social media for marketing, review and decision-making. Use of popular
internet media such as facebook, twitter, yelp and youtube is on the rise and its impact on the
society is significant. For companies, social media can be an effective means for mass
marketing for considerably lower price as through viral marketing global audience can be
reached in a short span of time. Moreover, it can be an effective tool to determine the
perception of the people towards the company through study of reviews on different websites.
‘Emerging trends in eTourism are focused on the increasing opportunity for companies to
adopt a customer-centric approach as well as on the benefits offered by the creation of a
network of partnerships with other tourism organizations related to the services provided‟

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[Buhalis and O‟Connor 2005]. The use of yelp.com is becoming more and more popular
where people review a restaurant or a hotel and write about their experience and consumers
today heavily rely on the reviews for their decision making process. Furthermore, consumers
today through social media and mobile apps have unlimited options and knowledge about
different aspects of the industry. The trend is only likely to grow and develop further and an
institution in the hospitality industry should be able to adapt itself and use the information
technology to their best advantage.

Healthy Organic Foods


As people are becoming more health conscious due to rise of diabetes and heart diseases in
recent times, businesses in hospitality industry are forced to use healthy organic foods during
food production. Moreover, allergies and food poisoning has been an issue in the sector and
combined with environmental and animal welfare concerns, the demand for organic food has
significantly risen. ‘Organic products are obtained by processes friendly to the environment,
by cultivation techniques that consider both the attributes of the final product and the
production methods‟ [Chinnici et al., 2002]. Because environmental and health concerns is
on the rise, the demand for organic food is likely to continue and therefore, the trend in the
hospitality industry to use the organic products will persist and even expand in the future.

Ecotourism
Global warming and pollution has been a growing concern for people all over the world
which has given rise to the trend of eco-tourism where tourists limit their impact on the
environment of the location they visit and participate in activities to sustain and protect the
environment and the locality. As written by Wood M. E. [2002], „ecotourism is responsible
for travel to natural areas that conserves the environment and sustains the well being of local
people.‟ Hospitality industry at present promotes ecotourism and participates in activities
related to environmental awareness and most of the businesses are starting to go green i.e.,
they have started using products that is environment friendly.

Dark Tourism & Adventure Tourism


Dark tourism is a trend that was established in the past and the trend has been ongoing at
present and is likely to continue in the future. „For the individual who wishes to journey and
gaze upon real or recreated death, a plethora of sites, attractions and exhibitions are now
emerging across the world to cater to the ‗darker side of travel‟ [Sharpley & Stone, 2009].
People visiting Nazi concentration camps, 9/11 terror sites, hotel Taj in Mumbai, the Jack the

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Ripper exhibition in the London Dungeon, Chernobyl in Ukraine and the Holocaust
Memorial Museum in Washington DC are some fine examples of dark tourism all over the
world. In recent time, people visiting Nepal to see the effect of the earthquake of 2015 is an
example of dark tourism within the country. The trend of dark tourism is bound to continue in
the future and people will visit these places for various purposes. Similarly, tourist who
travels seeking adventure in different parts of the world has been an ongoing trend and is
likely to continue even further in the future. Tourists coming to Nepal for rafting, bungee
jumping and mountaineering are good examples of adventure tourism in the country. Nepal
has a good potential for adventure tourism as it is geographically diverse and there is bound
to be developments in the field in the upcoming future which will aid tourism sectors and
create opportunities for boom of institutions in the hospitality industry.

Rise in Senior Tourism

Senior tourism is in rise in the UK as people are beginning to visit different places when they
age and cross retirement age. The segment of adults over 55 years of age will increase the
overall volume of tourism the most; these adults are characterised by extensive experience in
tourism, making them more demanding consumers and allowing demand to shift away from
peak seasons because this is a segment of the population that is often retired [Alén et. al.,
2012]. The number of senior tourists is increasing because they have ample time and money
after their retirement. The trend is relatively new but is bound to continue in the future
because the population of seniors is likely to increase due to higher life expectancy and lower
birth rate in Europe. Targeting them would allow businesses in hospitality industry to gain
more revenue and increase the satisfaction level of the seniors.

Conclusion
In conclusion, there are different ongoing trends in the hospitality industry which will further
develop in the future and new trends are likely to be introduced due to innovative ideas.
Space tourism has already become a reality and is bound to be more viable and less expensive
in the future. Practices by businesses for budget hotels and budget travels are likely to
significantly increase the flow of the tourists due to affordability and businesses as well as
customers are using information technology more vigorously. Similarly, people are leaning
more towards ecotourism and organic foods and dark tourism and adventure tourism is on the
rise. Last but not the least, senior tourism is on the rise as seniors have ample time and money
and are interested in travelling in their latter years.

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4.2) Produce an impact analysis for the predicted trends and developments.

Introduction
There are number of ongoing and upcoming trends that are likely to develop in the future and
are bound to affect the hospitality industry in one way or another. The impact of the predicted
trends may shape the operations of the businesses or it may influence the perception and
action of the customers. Either way, industries in the hospitality sector should be prepared
and devise innovative ideas to sustain or to grab the opportunity available. Adaptation to the
upcoming trends first requires assessment of its impact and its influence on the behaviour of
the prospective consumers. Space tourism is already a reality and looking like a viable option
for the future and budget hotels and budget travels is bound to increase the flow of tourists,
domestic and international. Similarly, use of information technology is on the rise and
customers are leaning towards organic foods and ecotourism which can be used as an
advantage through its implementation in business practices. Furthermore, people are
interested towards dark tourism and adventure tourism which might create opportunities in
the future and the rise in senior tourists should be evaluated properly to adjust oneself to the
change.

Impact Analysis for Space Tourism


Space tourism is expanding as companies are investing towards fuel technology and relevant
operations. Even though it is developing, it is very expensive at present and remains a luxury
for the riches. According to the article in Aerocom Metals, several companies are lining up to
get into the space tourism business. Virgin Atlantic already has a craft in the testing stage, so
it‟s further along in development than other companies. XCOR Space Expeditions has two
spacecraft that it plans to operate from the Mojave Desert in California, World View is
offering a six hour flight at 100,000 above the planet with fantastic view and Space
Adventures Company at present negotiates trips with the Russian space agency [Smith Paul,
2015]. In the near future, people will still see it as a luxury as price though down will not be
able to involve the middle class. However, with time, newer technology and improved
economy, in upcoming years, space tourism is bound to be a big industry and include normal
mass for adventurous travel.

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Contemporary Hospitality Industry 2015
Impact Analysis for Budget Hotels and Budget Travels
Economic fares from airlines and lower prices from hotels is bound to entice more individual
to travel and will eventually increase the flow of tourists. The number of tourists in upcoming
years will be progressively improving and though individual profits will be less due to
budgeted pricing in the large scheme of things, businesses in hospitality industry will be able
to generate higher revenue due to increased use of services and generation of revenue from
the masses. The philosophy of ‘do small amounts but increase the amount of deals’ will be
applicable and will be extremely beneficial to an organization. According to the data
published by Visit Britain [2014] the number of inbound tourists in UK has been
progressively increasing over the years. In 2010 there were 29.8 million inbound visitors,
which rose to 30.8 million in 2011, 31 million in 2012, 32.7 million in 2013 and 34.4 million
in 2014. The rise in the number might be due to various factors but budget travel and hotels
are one of the major factors influencing the ultimate visiting decision of the tourists.

Number of Inbound Tourists


35
34
33
32
Million

31
30 Series 1
29
28
27
2010 2011 2012 2013 2014

Fig 1.1: Increase in Number of Inbound Tourists in the UK [Visit Britain, 2014]

Impact Analysis for Increased use of Information Technology


With the rise in use of information technology, companies will be able to increase the
effectiveness of marketing and will be able to reach the masses in short span of time. With
further priority given to customer relations and overall image among the customers through
use of social media and internet, companies will be able to increase its market presence and
the customer base. According to Stelzner [2010], „close 90% of marketers are using social
media to market their businesses out of which 65% have just started or only a couple of
months into it. Out of the ones who are currently using social media, almost more than half

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Contemporary Hospitality Industry 2015
are on social media for more than 6 hours per week while 12.5% spend more than twenty
hours per week.’ Extensive use of social media helps develop customer loyalty and should
make it easy to establish brand image. However, it should be noted that the failure from an
institution to adapt to upcoming trends in social media and information technology will make
it extremely difficult for them to survive in the hostile market and will be a major cause for
their demise. From the perspective of the customers, they will have unlimited options and a
means to vent their anger when the situation arises. Customer perception will be influenced
by the review of the masses and will ultimately impact their buying decision.

Impact Analysis of Organic Foods


Increased health consciousness and use of organic foods is likely to impact the health of the
customers positively and will be essential for their personal well being. In spite of slowdown
in the global economy, sales of organic products continue to rise. Organic Monitor estimates
organic food & drink sales reached almost 63 billion US dollars in 2011. The market has
expanded by 170 percent since 2000 [Willer et.al, 2013]. The sales and use of organic
products continues to rise is likely to keep on rising in the future. In the future, hotels,
restaurants and relevant organizations will increase the use of organic foods in their menu and
food safety will be given an utmost priority. Institutions in the hospitality industry must make
sure that the materials they use are organic, healthy and with nutritional values.

Impact Analysis of Ecotourism


Inclination of population towards ecotourism will help preserve the environment of the
locality and improve the lives of the locals. Additionally, businesses that give priority to
environmental preservation will have positive image on the perception of the customers and
will be exceptionally beneficial to an organization. Tourists will be more concerned about the
environment and further activities for preservation and maintenance of the environment is
likely to be initiated. This will help control pollution and will improve the surrounding of the
country which will be a major achievement.

Impact Analysis of Dark Tourism and Adventure Tourism


People are likely to continue to visit places of historical significance which should be helpful
in creating opportunities for businesses in such places. Places with grief attached to them will
attract considerable number of tourists in the future which will be valuable for the overall
economy of the nation. Similarly, in context of Nepal, adventure tourism is likely to expand
and new adventurous activities shall be developed. More rafting sites will be added and

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Contemporary Hospitality Industry 2015
mountaineering will progress even further. The tourism sector in the country is likely to boost
which will help improve the overall economy of the nation and living conditions of the
citizen. If opportunities such as winter skiing and parachuting can be utilized, investors will
have favourable circumstances for appropriate returns and consequently employment will be
remarkably improved.

Impact Analysis of Rise in Senior Tourism


As per the article in Dailymail [2010], in 2009 as many as 5.4 million over 55s came to
Britain on holiday from overseas – almost one in five of the total visitor numbers. This
compared with a ratio of one in eight in 1993. The number has increased and it is bound to
rise even further especially in Europe which will present the hospitality industry with
opportunity in the niche market. Senior citizens have good economic ability and therefore if
proper care is given to them, the sectors in the industry will be able to enhance its business
performance. The institutions in the industry are likely to be centred towards the seniors in
the future because the majority of the guests will be seniors. They will eventually determine
the operation and services of the organization.

Conclusion
In conclusion, the potential trends and developments in the hospitality industry are likely to
impact the business performance of the organization as well as the behaviour of the
customers in the future. An organization should be able to assess the impact and should adapt
itself accordingly to assure success and improve its business performance. The assessment of
the impacts will also be helpful in creating opportunities in the future and will be extremely
beneficial to an organization. Space travel though a reality will remain impracticable and will
be limited to the extremely riches. Budget hotels and budget travels is bound to increase the
flow of the tourists and will profit the organizations on the long run. Similarly, use of
information technology will make marketing more effective and give consumers unlimited
knowledge and options, customer’s preference towards organic food will force the
organization to use it and ecotourism will be helpful in preserving the environment and
improving the lives of the locals. Furthermore, increased interest in dark tourism and
adventure tourism will create opportunities and improve the economy of the nation whereas
rise in number of senior tourists will present an organization with an opportunity to improve
its business.

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Contemporary Hospitality Industry 2015

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