Hospitality management

HOSPITALITY MANAGEMENT

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Hospitality management

Contents
Introduction:..........................................................................................................................................3
Definition of Hospitality Business:........................................................................................................4
Organization structure of Hospitality Industry:.....................................................................................4
Functional area of Hospitality industry:.................................................................................................5
Interrelationship of the operational and functional Units:......................................................................5
Economic Impact by Hospitality Industry:............................................................................................5
Key Hospitality Functions:....................................................................................................................6
External Factors:....................................................................................................................................8
SWOT Analysis:....................................................................................................................................9
Current and Political Trends affecting the hospitality Industry:...........................................................10
References:..........................................................................................................................................12

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Introduction:
Marriot International Inc has become one of the most renowned, prominent as well as largest
operators in hotel industry. It operates in more than 75 countries as well as territories and has
approximately 4200 hotels around the globe. There are about 57 hotels in total in UK and
Ireland covering major cities, countryside locations and key town. The operations of the
organization are done under 19 different brands that includes J W Marriot as well as Ritz
Carlton. The property of Marriot international is inclusive of various suites, boutiques, luxury
as well as resorts and hotels in the form of apartment as well (Marriott.com, 2019).

At this point of time, Marriot is focused on making continuous efforts for expanding its
business that can help in achieving significant growth in revenues. As per the records of
company in the year 2015, the revenues were reported as $14.22 billion and it is said that is
improving and increasing at a 5.88% rate. Additionally, the number of rooms have also
increased from the year 2013 to the year 2014. In terms of numbers 82000 rooms were added
in the time period of one year (Marriott.com, 2019).

One of the most important and vital question asked by the investors is various technological
as well as political and economic factors that affect the business of Marriot International. In
this report the focus has been made over various operational as well as functional roles in the
hospitality industry and at Marriot International. The pestle analysis has been done by
considering various political, economic, legal, environmental factors that have major impact
over the business followed by the SWOT analysis of Marriot International.

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Definition of Hospitality Business:

The industry or business in hospitality sector is quite broader as compared to that of any other
business or industry. The major motto of any hospitality industry is to meet the customer
satisfaction and fulfil their leisure and other needs. It is inclusive of various fields of service
business such as event planning, lodging, drink and food service, cruise line, transportation as
well as travelling is included. This industry is mainly dependant over the disposable income
as well as leisure time of the customers. Due to this, most of these businesses are for rich
patrons or tourists. If there is decrease in the disposable income of consumers due to
recession or slump, then this industry is the first industry that suffers as consumers won’t be
able to enjoy the services as their income will be decreased.

There are many individuals who think that hotels are the only part of hospitality business,
however hotels are only considered as one basic part for this industry. There are various
transportation forms that provide services to tourists are also included in this area of business.
For example: in this hospitality business niche cruise ships, airlines as well as fancy and
luxurious trains are also included. In addition to this, event planning, general tourism as well
as restaurants also fall under this niche. However, it is also important to know that there are
some businesses which belong partially to this industry of hospitality. For example, a
restaurant that serves fast food is usually considered as a convenience part, but a restaurant
that focuses on providing fancy items of foods and offers amazing as well as classy service
will be considered as a hospitality industry or business (Dienhart, 2010).

Organization structure of Hospitality Industry:

At Marriott International, the organization structure consists of various core functions that
help in smooth functioning of business. It has been divided into various departments such as
department of food and beverages, department of housekeeping, food production department
as well as front office department. Co-ordination plays an important role in all these
departments. The department of Food and beverages deals with all the activities that are
mainly allied with beverages and food. In the world of hospitality business or industry, the
department of housekeeping plays a vital role as it takes responsibility for keeping all the
guestrooms as well as public areas clean and neat. It consists of huge number of staffs that
includes members such as room attendants, room inspectors, linen room attendants, assistant
as well as a house individual crew. Another operational department at Mariott consist of front
office that takes care of responsibilities related to registration details of guests, taking

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reservations, taking care of guest accounts, check-in and checkout records, etc. It is
considered as one of the most important and visible portions of the office area in the front
that is responsible for allocating designated rooms to guests, sending emails or any other
information to guests. Another department consists of food production that takes care of
preparing goods as well the orders received by the guest. It is the responsibility of food
production department to communicate effectively with food and beverage department about
the orders and cater them in the best possible way.

Functional area of Hospitality industry:

The functional structure is important for industry as it helps in organizing the duties and
responsibility of workers. Marriott is structured in vertical way through which roles are
assigned to very department from head office to sales and finance departments, etc.
Marketing and sales are the most important functions for hospitality industry or business.
There are various packages included that helps in developing public relations, promotion as
well as advertising. The division of marketing is responsible for making sure that services are
catered at the right price as well as it has right kind of guests (Grobelna, 2015).

Interrelationship of the operational and functional Units:

The structure of an organization helps in defining the relationship as well as interactions
among different departments of industry or business that helps in identification of command
chain that helps in running the business at various levels of organization. Most of the time in
hospitality industry, the functional structure is adopted which means that various functions
are allocated to different departments and each and every department is responsible for the
same. In this way, the authority has clear line through which decision makers are able to set-
up the overall tasks as well as achieve the targeted mission. However, it is important that each
and every department co-ordinate effectively and efficiently with each other.

Economic Impact of Hospitality Industry:

The industry of hospitality is growing at a rapid speed and is approximately contributing 10%
to the GDP of world. During the life span of last decade, the industry has received much more
importance and its expansion is considered as a vigorous procedure. This industry of
hospitality is expanding at a global level and is focused on its growth promotion in a
multicultural environment. There are many subsectors in the industry, however, restaurants
and hotels are considered as main source for the growth of economy. The industry of
hospitality in the region of UK provided around 2.9 million jobs that was equivalent to 9% of

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total employment in UK in the year 2014. From the year 2010-2014, a total of 17% growth
has been observed in the net employment of UK due to hospitality industry. Additionally, the
contribution has been made by hospitality industry to the GDP of UK and it accounted to $57
billion in the year 2014. Approximately, on an average total of 1% investment is made due to
the industry in the economy of UK. In addition to this, the travel and tourism sector of
hospitality industry grew by 4.6% in the year 2017. It also helped in creating approximately 7
million jobs in the year 2017 around the globe. The development of franchising seems to be
quite easy process and relatively smooth. This option of franchising is wide open in the
international market as well as offers enormous potential for various franchisors that helps in
providing right products as well as services. The licensing, franchising development as well
as global growth of hospitality industry have greatly contributed to the economic worth of the
nation. However franchising seems to be quite expensive as compared to that of licensing.
Both these ways of expanding the business have greatly contributed to the hospitality
industry. For example: The organization chosen Marriot international started franchising and
licensing depending over the situation and have greatly contributed to the economy of various
countries around the world by developing a strong brand image and maintaining the same.

Key Hospitality Functions:

Any business will not be able to run effectively as well as smoothly without making use of
correct resources as well as right individuals. There are basically seven areas that are found
common in most of the hospitality businesses specially in hotel management. All these seven
areas help in reflecting the different roles of job that are required for running the organization
in an effective and efficient way.

 Front Desk Services:

In a hotel business or organization, there is no segment of operations that can be said
as indispensable. However, it is always argued that without front desk services,
smooth running of hotel business will not be possible. All the front desk service
providers at Marriot International are responsible for handling and recording bookings
as well as have to remain in contact with all the guests of hotel. It is important that
individuals working as the front desk service are detail oriented who are able to take
responsibility of guest in the best possible way and maintain the repute of the
company.
 Housekeeping:

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One of the most important and necessary tasks is to make sure that all the guest rooms
are properly cleaned and for this task the team of housekeeping is responsible. At
Marriot, the house keeping department is provided proper training for making sure
that guest rooms are checked with proper details and customers are satisfied with the
service provided.
 Accounting:
In every business, it is important to maintain proper records of accounting. Proper
adjustments as well as tweaks can be made only by tracking revenues and expenses of
business. The duty of an accounting department is to provide relevant forecasts as
well as data to the team of executives so that proper support can be provided to
various departments. At Marriot international, accounting department provides
quarterly statements to the team of directors and executives so that proper allocation
of expenses can be done such as marketing.
 Marketing and sales:
For each and every business promotion is required. The team of marketing takes
responsibility of enhancing the value of the business’s brand name and it is important
for them to have track of recent channels of marketing that includes content
marketing, social marketing, OTAs as well as many more. At Marriot International,
special marketing team is focused on maintaining the brand image of company by
bringing new and innovative ideas that attracts more and more customers.
 Food and Kitchen staff:
Another important staff or personnel in hospitality industry specially in hotel business
that offers room service inclusive of restaurant service. It is quite hard to meet the
demands of guest about the food if the staff of kitchen is not competent. At Marriot
International, special kitchen staff is appointed as per the region so that local food is
provided easily to the guest as most of the tourist prefer to try and taste local food of
particular region. (Pizam, 2011).

External Factors:
These factors help in providing an overview of the various challenges that might be faced by
Marriot International in the UK environment which is macro economic and it is different
from various competitive forces. The PESTLE analysis includes various political, economic,
social, technology, environment as well as legal factors that has major impact over the
hospitality industry.

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Political Factors:

These factors have direct impact and plays a vital role in the country’s economy. The main
motive or target of the hospitality industry is to focus on attracting the international tourism.
The hospitality and hotel industry are considered as the backbone of country’s economy as
well as it provides support to government for sustaining in this world of competitiveness.
There are various countries in which Marriot International operates and they are expose to
various environment as well as risks that are associated with particular region. On other end,
the UK market is considered as free market relatively , but government still focus on keeping
a close eye over the hospitality industry. It is important for Marriot International, to analyse
various political factors such as political stability of particular country, corruption level,
military invasion, etc (Bharwani and Mathews, 2012).

Economic Factors:

Another important factor that plays a vital role in external environment is economic factors
such as change in inflation rate, foreign exchange rate as well as interest rate that helps in
determining the aggregate investment as well as aggregate demand of an economy. For every
hospitality business, factor such as fluctuation in currency as well as intense competition
among airlines affects the hospitality industry to a great extent. In UK, there seems to be huge
competition in the hotel industry, as a result it is important for Marriot International to focus
on various economic factors that could have major impact over the business. Additionally,
increase in the recent VAT will have major impact over the disposable income of consumers
that increased from 17.5% to 20% due to which much strain will be observed in the
individuals budget.

Environmental Factors:

At this point of time, various environmental factors such as change in weather, climate, waste
management in service sector and many more can have major impact over the business of
hospitality industry. One of the environmental impact that seems to be quite potential and
could impact the business of Marriot International is increase cost of electricity that is mainly
generated by the efforts for curbing the gases of greenhouse as well as limiting the coal burn
in various power plants. Additionally change in climate can also harm the business of
Marriott as the level of ocean can be raised and discouragement can be observed due to
storms of flooding resorts (West and Olsen, 2009).

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Legislative factors:

This is one of the most important factor that affects the business of hospitality industry. There
are various laws such as health and safety laws, age law, discrimination law, minimum wage
law and many more. Every country has specific law. It is important for Marriot international
to make sure that all the legislative laws are followed as per the specific country’s law. In
UK, it is important to have legal and valid documents of not only one individuals from a
group but all the individuals of group. Additionally, the services status such as Airbnb also
impact the future business of Marriot International as there are many cities in UK where hosts
of Airbnb have specific zoning laws that are violated (Lee, 2017).

Technological Factors:

Another important external factor that has major impact over the hospitality industry is
technology. It is important for the hospitality industry to make up to date information about
the new technology that is emerging in the market. For example: the use of online service for
booking hotels is increasing and visitors don’t like to wait after their arrival at the hotel. It is
important for the hotel management to make sure that proper online procedure is followed.
Marriot international is taking care of these technological factor due to which it is able to
sustain in this competitive world of hospitality industry (Bharwani and Butt, 2012).

SWOT Analysis- Mariott:

Strengths:

 Recognition of brand around the world.

 Capability of improving the experiences of customers through new and advanced
innovations in technology as well as upgrading the process of business on continuous
basis.
 Excellent rate of employee retention with the approximate workforce of around
150000 employees.
 Have developed its hotels in more than 70 countries that counts approximately 3700
hotels around the world.

Weaknesses:

 High rate of competition from various hotel chains that are very well established due
to which possibility of market share that is limited.

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 There might be observed dilution of brand due to huge number of resorts and hotels as
well as expansion globally.

Opportunities:

 Great potentiality for developing into various markets that are emerging into tourism.
 Bringing innovations in the services provided to customers.
 Developing in the market such as India where the sector of hospitality has started
booming recently.
 Focusing on developing personalised services as customers are looking for services as
per their choice in today’s market.

Threats:

 Increasing entrance of various brands at international level that holds quite strong
position in the market.
 The business of hospitality is greatly affected by the recession and there are many
properties around the market that are not able to generate proper revenues.

Current and Political Trends affecting the hospitality Industry:

The political trends of any country has direct impact over the country’s economy due to
which performance of business is affected to a great extent. There are various current as well
as political trends that are affecting the industry of hospitality such as technology explosion,
increment in making emphasis over the well being and health of customers, requirement of
seamless technology, destination promotions, sustainability issues, unique perks and many
more. For example: if any of the guest is not satisfied with the service that feedback is posted
by them on various social networking sites such as TripAdvisor, Facebook or twitter and it
could have major impact over the brand image and business. It is important for the
management to respond quickly to these posts and focus on developing positive relations
with guest due to which bookings can be driven in future (Sheel, 2011).

Another current trend affecting the industry of hospitality industry is the practices related to
eco-friendly are trending in the market and focusing on various issues such as scarcity of
water as well as renewable resources of energy. For example: There are many hotels that are
focusing on instalments of solar panels as well as systems are updated on regular basis so that
no electricity is wasted and it gets turned of automatically when customers locks their guest
room.

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Today guests are more focused towards their health and it is important for hotel industry to
respond to their requirements by providing proper centres for fitness, spas as well as pools.
With the increasing innovations, travellers are also looking for various options about wellness
with options of eating healthy food (JOHN, 2015).

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References:
Bharwani, S. and Butt, N. (2012). Challenges for the global hospitality
industry: an HR perspective. Worldwide Hospitality and Tourism
Themes, 4(2), pp.150-162.
Bharwani, S. and Mathews, D. (2012). Risk identification and analysis in
the hospitality industry. Worldwide Hospitality and Tourism Themes,
4(5), pp.410-427.
Dienhart, J. (2010). Critical Issues Facing the Leadership of Hospitality
Management Programs. Journal of Hospitality & Tourism Education,
9(4), pp.41-41.
Grobelna, A. (2015). Intercultural Challenges Facing the Hospitality
Industry. Implications for Education and Hospitality Management.
Journal of Intercultural Management, 7(3), pp.101-117.
JOHN (2015). Growing Trends in the Tourism and Hospitality Industry.
Journal of Tourism & Hospitality, 04(03).
Lee, P. (2017). TrainTraining and Development Trends in the Hospitality
Industry- Evidence from Hospitality Management Journalsing and
Development Trends in the Hospitality Industry- Evidence from
Hospitality Management Journals. Journal of Tourism Research &
Hospitality, 06(02).
Lucas, R. (2011). Hospitality Industry Employment: Emerging Trends.
International Journal of Contemporary Hospitality Management, 5(5).
Marriott.com. (2019). Canary Wharf Hotel - Hotel in East London | London
Marriott Hotel Canary Wharf. [online] Available at:
https://www.marriott.com/default.mi [Accessed 26 May 2019].
Nevett, W. (2012). Operations management perspectives and the
hospitality industry. International Journal of Hospitality Management,
4(4), pp.173-178.
Pizam, A. (2011). Does the tourism/hospitality industry possess the
characteristics of a knowledge-based industry?. International Journal
of Hospitality Management, 26(4), pp.759-763.
Sheel, A. (2011). Recent Trends in the Lodging Industry: An Economic
Perspective. The Journal of Hospitality Financial Management, 15(1),
p.vii-vii.
Sun, K. and Lee, S. (2018). Effects of franchising on industry competition:
The moderating role of the hospitality industry. International Journal of
Hospitality Management, 68, pp.80-88.
Valentine, J. (2014). Modern financial accounting in the hospitality
industry. International Journal of Hospitality Management, 3(4), p.179.

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West, J. and Olsen, M. (2009). Environmental scanning, industry structure

and strategy making: concepts and research in the hospitality industry.
International Journal of Hospitality Management, 8(4), pp.283-298.

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