Free «Contemporary Hospitality Industry» Essay Sample

Contemporary Hospitality Industry

Introduction

According to the International Labor Organization (2010), the hospitality industry is a key service sector in all parts of the world. As the presented case scenario reveals, it is made up of businesses providing food, beverages and accommodation services. It is a fast-paced industry with a high turnover as it requires a lot of hard work. One of its contributions has been job creation as the sector employs a large number of people (Brotherton 2012). Additionally, it is a source of income for a number of business owners further enhancing economy growth. Investing in the industry has proven to be a worthwhile venture for many since it is known to be a multi-billion field.

Economic downturns experienced in the form of a recession in 2009 tended to slow down the advancement of the sector (Wyman 2012). Despite this state of events, the industry has continued to thrive as long-term employment trends are positive. The key factors leading to this development and expansion include e-commerce and globalization. Organizations in this industry have maintained a positive image as they carry out their business while committing to activities that benefit communities that they operate in. They have thus been involved in a number of environmental preservation programmes and corporate responsibility policies. The following essay considers the given scenario in the hospitality industry to offer an in-depth understanding of the contemporary hospitality industry by analysing the current scale, structure, role of related organisations, staffing requirements, and recent developments affecting this service sector.

Task 1

1.1 Analysis of the Current Scale, Scope and Diversity of the Hospitality Industry

The industry remains one of the largest and fastest growing ones in the world. It is considered to be a significant part of the world’s economy (Brotherton 2012). Furthermore, it is a multibillion dollar segment employing a large number of people of different races, gender, and ethnicities.

According to Wyman (2012), the scope of the industry is wide and is constituted by a number of key businesses which provide services to customers. Notable services include accommodation, food and beverage and entertainment. However, this should not be mistaken to mean that the scope of the hospitality industry is limited to these three categories alone. The hospitality segment is actually broad and is made up of a number of other sectors. These include events, tourist services, membership clubs, hostels, holiday parks, gambling clubs and casinos, pubs and nightclubs, travel services and contract catering.

Brotherton (2012) asserts the hospitality industry is one of the most diverse sectors. Factors such as innovation, service provided, classification, facilities and trends are some of the sources of its diversity. For instance, the hotel industry is extremely manifold. Apart from the traditional food and accommodation, today, hotels provide additional services such as gyms, swimming pools, internet, nightclubs, saunas and jacuzzis, hair and beauty salons among many others.

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1.2 Organisational Structures of Different Hospitality Organisations

The hospitality industry has its own unique way of structuring human and physical resources (Wayne 2009). The following represent organizational structures of different hospitality organizations.

Tall and Flat Organisational Structure

According to Pizam (2010), these organizational structures are used in hotels. The structure chosen will depend on the size of the hotel. Tall organizational structures are used in large ones since they consist of different levels of employees. On the other hand, flat organizational structures are employed by smaller hotels as the number of workers is lower.

Operational Organisational Structure

According to Wayne (2009), the operational organizational structure implies a division into departments that include food and beverage, housekeeping, front office, food and production.

The food and beverage department deals exclusively with food and drinks related activities. The housekeeping one is in charge of keeping the hospitality establishment clean. It is responsible for tidying up the hotel rooms and the outside environs of the place. The front office department is one of the most significant ones in any hospitality organization. Its activities include guest registration, checking out and payment, allocation of rooms and key distribution. The food and production department is in charge of meals preparation.

 
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Functional Organisational Structure

Functional departments are based on the functional organizational structure. These include marketing and sales, safety and security, maintenance, accounting and finance and personnel department (Pizam 2010).

The marketing and sales department is a significant one. It encompasses establishment of a positive image of the organization through positive advertising and public relations. Safety and security office is in charge of the maintenance of safety of the guests and staff, too. Maintenance department provides daily utility services such as electricity, hot water, air conditioning and others. On the other hand, the accounting and finance division controls the finances of the organization. Lastly, personnel department is in charge of the human resources of the business and coordinates and assigns them tasks.

The industry boasts of a large number of related organisations and professional bodies. The examples of such establishments include The British Hospitality Association and People’s 1st. This section highlights the role of the two organizations.

The Role of the British Hospitality Association (BHA)

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The first significant role of this association is to engage in the promotion and the presentation of the interests and concerns of the industry to the government (British Hospitality Association 2013). It undertakes a number of activities that are aimed to benefit the hospitality industry. For instance, one should mention the BHA’s 2011 campaign to reduce VAT rate for the hospitality sector. The association also informs its members about the important developments in the field and any recently implemented government regulations. Furthermore, it plays the role in shaping the future of the industry by encouraging international competitiveness. Finally, British Hospitality Association (2013) states that one more of its targets is to help its members gain insight into the needs of their customers.

The Role of People’s 1st

This organization assists hospitality organization’s to enhance and develop the skills of their employees (People's 1st 2013). Its representatives do this by working hand in hand with the employers to identify the training needs of their workers. By teaching their staff members, People’s 1st increases their productivity and performance. Consequently, the businesses are able to develop a competitive edge that enables them to effectively contend with their rivals.

Task 2

2.1 Staffing Requirements of Different Hospitality Industries

Each hospitality sector has its own staffing requirements that apply uniquely to them. The personnel standards of two hospitality industries are highlighted below.

Staffing Requirements for Hotel and Accommodation Industry

Nickson (2013) explains that the hotel and accommodation segment is an extremely demanding part of the hospitality industry. It, therefore, requires resilient staff who can cope with these expectations efficiently. The industry also needs employees who are problem solvers. It is a field that depends on customer satisfaction, and thus, the staff must be in a position to deal with the issues of the customers on the spot without having to consult their supervisors. Seeking advice from a supervisor to resolve the problem means that the matter is not well-handled by the employee. Consequently, such a case will be interpreted by the customer as poor service. As a result, the sector demands a staff team that can work independently. The high standards of this industry require workers that can competently do their work without round the clock supervision.

Staffing Requirement for Food and Beverage Industry

The food and beverage sector is equally demanding and needs staff that can meet the needs of the customers without delays or mistakes. One of the staff requirements for this industry is cleanliness. This is a sensitive field that demands absolute adherence to the healthcare regulations of food preparation. Thus, employees are supposed to ensure the process takes place in a clean environment so as follow all the health care rules. Another staffing requirement is workers must be able to fulfil instructions without mistakes (Nickson 2013). This is particularly essential in the order and delivery of food to the customers and will have an impact on the overall customer satisfaction. The staff is also supposed to have excellent customer service skills. This is vital as customer service is a significant building block of the food and beverage industry.

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2.2 Roles, Responsibilities and Qualification Requirements for Hospitality Staff

The terms “roles”, “responsibilities” and “qualification requirements” are a part of a job description. Kim et al. (2011) highlight the job descriptions of food and beverage manager, head chef, restaurant manager, personnel manager and housekeeper.

Food and Beverage Manager

Role

The food and beverage manager plays the primary role of ensuring there is excellent food and beverage service delivery within hotels and their respective restaurants.

Responsibilities

  • Supervises staff working in the kitchen and bar.
  • Keeps inventory in the kitchen and bar.
  • Ensures that there is required stock of food and drinks.
  • Maintains budget of supplies.

Qualification Requirements

  • Bachelor’s degree or diploma in food and service management.
  • Customer service skills.
  • Leadership and management skills.

Restaurant Manager

Roles

The role of the restaurant manager is to oversee all the services provided at the restaurant.

Responsibilities

  • Ensures guests are assigned their seats and are comfortable with them.
  • Supervises cleaning and organization of the restaurant.
  • Coordinates with food and beverage manager to update restaurant menus.

Qualification Requirements

  • Degree or diploma in management, business studies or hospitality management.
  • Practical experience.
  • Appropriate personal qualities.

Personnel Manager

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Role

Personnel manager oversees the personnel needs in the organization.

Responsibilities

  • Recruiting and selecting new employees.
  • Preparing training and development programs and carrying out the training.
  • Managing employees’ performance and carrying out performance appraisals.

Qualification Requirements

  • Degree in business or human management. Relevant certificate or diploma in hotel management is an added advantage.
  • Proficient with labour laws.

Head Housekeeper

Role

Ensures the establishment is clean and in order at all times.

Responsibilities

  • Supervises room cleaning and organizing.
  • Ensures there is daily linen replacement.
  • Ensures there is adequate supply of bedding, covers, and sheets.

Qualification Requirements

  • A minimum of five years’ experience in housekeeping or supervisory position.
  • In depth knowledge in housekeeping.
  • Must be highly skilled in management roles of planning, organizing, leading and controlling.

Task 3

3.1 Operational, Managerial and Legislative Issues Resulting from Recent Developments Affecting the Hospitality Industry

The hospitality industry has recently experienced a number of developments. The latter have brought about some issues which are described below.

Operational Issues

According to Goldstein and Primlani (2012), one of the operational issues that have been posing a big challenge to the hospitality industry is shortage of labour. The segment is continuously expanding, and many stakeholders agree that scarcity of human resources is hindering its further development. This is because the challenge of attracting talented workers has become a global issue affecting all industries including the one under consideration.

Another operational issue influencing the field involves cost. Presently, many hospitality businesses are struggling with the dilemma of reducing cost without affecting the quality of services provided to their clients. Thus, the industry has to find an effective way of decreasing cost while retaining value so as to continue its survival.

Managerial Issues

First main managerial issue affecting the hospitality industry is high employee turnover (Watson 2008). It was said previously that the hospitality sector is very demanding. In many instances, staff members work long hours which involve a lot of movement and action. In the majority of cases, it requires individuals with high tenacity that can be able to handle the demands of the industry. Additionally, the pay is not so attractive except for high level jobs which are few. Thus, there is high labour turnover as employees move on to look for better jobs.

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Furthermore, there is lack of talent that is backed by education qualifications (Boella & Turner 2013). This is another managerial issue that the industry is facing. The hospitality sphere is expanding at a high growth rate. As a result, this development forces the business to become more sophisticated. Eventually, many hospitality organizations will have to be run as corporations that will require qualified human resources to succeed and perform in the field.

Legislative Issues

The hospitality industry is facing a number of legal problems as a result of recent developments affecting the industry. These issues involve new industry regulations that have been put in place by the government. One of such challenges is the immigration reforms. It is common knowledge that a large number of employees in the hospitality field are immigrants. Sadly, the current immigration reforms adopted in June 2012 prohibit employers from offering work places to individuals before checking their immigration status (The Overview 2012).

Another legal issue influencing the hospitality industry involves health care provision to the staff. For instance, Affordable Care Act mandates employers with a number of 50 permanent staff to provide them with basic healthcare. This has caused a lot of hardship in the segment. As a consequence, many sectors of the industry are reducing number of working hours to avoid paying for healthcare for their staff.

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3.2 Current Image of the Hospitality Industry

The current image of the hospitality industry presents a picture of growth and expansion of the field (BDO 2014). There has been an increase in investment into restaurants, bars and pubs and other hospitality businesses. Tourism is a significant part of the segment which has continued to play an essential role in the world’s economic growth. The top hospitality revenue generating industry is accommodation with visitors spending a large amount of money on leisure.

As a result of the large contribution of the hospitality industry to the development of the economy, many governments have availed funds to several bodies connected to tourism with the aim of promoting tourism in their countries. This will in turn lead to further development of the hospitality industry. Moreover, there has been an increase in disposable income which has encouraged many to undertake leisure activities that has boosted the advancement of the hospitality industry in general. What is more, companies in the segment continue to expand through mergers and acquisitions (Duncan 2015).

Additionally, many hospitality businesses are changing their way of operation. For instance, the hotel and accommodation sector have embarked on the use of websites to help potential guests make bookings in a bid to reduce cost. All of the above mentioned changes present the current image of the hospitality industry.

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Conclusion

In conclusion, the analysis of the scale and scope of the hospitality industry shows that it is one of the largest and most important sectors of the economy. The field’s expansion can be confirmed by many employment opportunities available to the graduates of hospitality related courses. The different organizational structures of the hospitality organizations include flat, tall, functional and operational ones. Moreover, there are a number of industry related organizations and professional bodies whose roles involve protecting the welfare of the industry. Additionally, there are some staffing requirements in the segment that ensure that only the most qualified employees are hired. Further, the industry has been affected by a number of recent developments that have brought operational, managerial and legal changes to the sector. The current image of the industry presents a positive picture that brings hope for its continued expansion and advancement.

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