The Contemporary Hospitality Industry

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The Contemporary Hospitality Industry

INTRODUCTION
Hospitality industry today has become one of the major revenue generator for
economies of various countries. It is crucial element of travel and tourism
sector. However hospitality sector in itself is a major independent sector as well.
This can be understood by the fact that in UK alone there are approximately
180,000 hospitality and leisure establishments which employ more than 2
million people. Hospitality sector includes gamut of other small sectors in it
such as hotels, pubs and restaurants etc. in terms of economy also, hospitality
sector is a major contributor to UK's economy. For example in 2006 this
particular sector clocked a turnover of approximately 65 billion GBP (Hogue.
2009:419-443). This sector is completely dependent on confidence of
consumers and business sentiments and since last 5-6 years especially after
Eurozone crisis of Europe, there has been increasing pressure on this sector to
innovate, and deliver value to the end consumer. With fragility in economy and
UK government's austerity measures this sector has been witnessing a
suppressed spending impacting the overall growth of the sector. This assignment
is focused on analyses of hospitality sector, its structure. Staffing. Recent
developments and potential trends affecting this sector.

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The Hospitality Industry, by definition, is a service industry. It is the

major service sector in the world economy. Hospitality industry is a major
employer. The industry includes service sector work like tourism, food service
and hotels. Hospitality industry suffers from more economic fluctuations within
an economy every year compared to its peer industries. The hospitality industry
is complex.
The hospitality industry is much broader than most other industries. The
majority of business niches are composed of only a handful of different
businesses, but this industry applies to nearly any company that is focused on
customer satisfaction and meeting leisurely needs rather than basic ones. While
this industry is very broad, there are some defining aspects that are important to
understand.
The fastest growing industry with over 72.4 million jobs around the globe
is tourism and hospitality. While this is a very broad industry that can
incorporate many different businesses, there are some defining elements that set
it apart from similar businesses. The broad-reaching hospitality industry ensures
that every customer is happy because brand loyalty is essential.

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1.1 Analysing the scale, scope and diversity of the hospitality

industry.
The scale and scope of the hospitality denotes the number of businesses and
impact on economy of those series of businesses that offer services and
facilities.

Hotel
A commercial establishment offering lodging to travellers and sometimes to
permanent residents, and often having restaurants, meeting rooms, stores, etc.,
that are available to the general public. Talking about the structure of the
hospitality industry, hotel can be described on the basis of:Location
City hotels also known as down town hotels are located in the middle of
the city or heart of the city.
Resorts are usually located near to the hills or beaches.
Airport hotels are located nearby the airports.
Motels are located on the highway, and has garage and parking facilities
and are small in size.
Floating hotels or flotels are located on rivers or in harbour areas.
Level of Service

Luxury hotels which are usually 5 star and 7 star deluxe hotels.
Mid-level hotels i.e. 3 star hotels.
Economy/Budget hotels are smaller hotels that falls below 3 star hotel.
Bed & Breakfast hotels provide only room and breakfast.

Target Market
This type of hotels target specific market attributes.

Clients.

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Convention.

Suite.

Casino.

Size

Small hotels with less than 25 rooms.

Medium hotels with the availability of rooms from 25 to 99.

Large hotels consist of 100 to 299 rooms.

Mega hotels avail 300+ rooms.

Theme

Heritage hotels are usually palace, bungalow, etc. converted into hotels.

Ecotels are economy hotels, and are not expensive.

Spa hotels are majorly famous for their spa and salon.

Restaurant
Restaurant is a public place where food and beverage is provided on a
commercial basis and is open to all to take refreshment. Restaurant comes from
the word rest and rent. Guest take Rest in restaurant and pay Rent for having
refreshment, food and beverage. They vary greatly in appearance and offerings
that includes wide variety of cuisines and service models. Restaurants may be
distinguished in many different ways. The primary factor is the food itself.
Today we are available with a wide variety of restaurants: Fine Dining Restaurant (are full service restaurants with specific
dedicated meal courses and are expensive).
Casual Dining Restaurant (serves moderately priced food in a casual
atmosphere).
Family Restaurant (here only family is permitted).

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Grill and Bristros (grill is a cooking process that involves direct heat.
Some restaurants only serves grilled food i.e. food cooked on bars and
grills).
Buffet Restaurant (they offer patrons a selection of food at fixed price.
Food is served on trays around bars, from which guests with plates serves
themselves).
Speciality Restaurant (these restaurants are known for their speciality in
any cuisine).
Bakery (it is an establishment that produces and sells flour-based food
baked in oven, such as bread, cookies, etc.).
Coffee Shop (it is an establishment which primarily serves hot coffee,
related coffee beverages, tea and other drinks).
Food Trucks (these are kitchen in a vehicle, they prepare and sell food in
the vehicle).
Fast Food Chain (ex. KFC, Pizza Hut, etc.).

Pubs
A Pub, or a Public house, is a house with a bar and one or more public rooms
licensed for the sale and consumption of alcoholic beverages, often providing
light meals. The essential features of pub are:

Bar counter with beer taps

Recorded music and in cases live music too
Pub finger snacks and pre-plated pub meals
Indoor games like dart and pool/snookers
Plush seating

Bars
The bar serves these following attributes:

Wines
Liquor
Spirits
Juices
Aerated Water
Cigars and Cigarettes

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Night Clubs
The traditional Night Club is principally open at night only, for dinner, dance
and live entertainment. Its special features are: Dcor is lavish.
Service is elaborate with fine linen and silver crockery.
Guests have to put on formal wear only and some go to the extent of
insisting on black tie.
Live performance or cabarets which varies from famous singer and
dancers, voude-ville shows and Can dances. A variant to entertainment
is the supper theatre where guests see a play before or after dinner.
A live band.
A dance floor.
A fully stocked bar with bartenders who are entertainer themselves
using showmanship to dispense drinks.

Clubs and Events

An association consisting of two or more people united by a common interest or
goal is known as a club. A service club, for example, exists for voluntary or
charitable activities; there are clubs devoted to politics and religion, social
activity clubs, hobbies and sports and many more.
An event may refer to gathering of people in a ceremony, convention, festival,
happenings, media event, party, social event and so forth.

Types of Ownership
A Hotel associates with four types of ownership and affiliations:I.

Independent Hotels (aka stand-alone hotels, they have no other

II.
III.

properties that resembles ex. The Imperial Hotel, New Delhi).

Chain Hotels (ex. Taj Hotels, Oberoi Hotels).
Timeshare and Condominiums (these hotels are long term hotels where
guest stay for a longer period of time like a month or a fortnight or
even longer, ex. Karma Royal Haathi Mahal, Cavelossim).

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The Contemporary Hospitality Industry

IV.

Management Contract (the owner lends his/her property for the

purpose).

Turnovers and GDP

- 7.1 million tourist arrived in India in 2015, since 2005 it increased by 7.1%. It
is expected to reach 15.3 million by 2025. By the tourist arrival itself 15 billion
USD was generated.
- With 32 million tourist visiting in 2013 UK is also known as the 8th biggest
tourist destination and generated 17.2 billion USD was generated. Tourism and
hospitality contributed 6.7% of GDP in 2012. It is expected to bring out
1,189,000 jobs by 2022.

Products and Services

Food and Beverages
This department is responsible for maintaining high quality of food and service,
food costing, managing restaurants, bars, etc. It is a service of food made in
kitchen and drinks prepared in the bar to the guest in the food and beverage
premises which can be restaurants, bars, hotels, airlines, cruise ships, trains,
companies, schools, colleges, take away, etc.
Food and beverage outlets are categorized as:

Restaurants
Lounge
Bar
Discotheque/Nightclub
Room Service/In Room Dining
Meeting and Conference Rooms
Ball Rooms
Delicatessen
Fast Food Courts
Food Trucks
Coffee Shop
Caf

Accommodation
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Accommodation is basically a place where guest(s) can live, stay, or work.
Lets look at the accommodation providers:

Hotels
Motels
Apartments
Flats
Villas
Holiday Centres
Exhibition Centres
Farm Houses
Camping Sites
Condominiums
Conference Centres
Guest Houses
Vacation Villages
Caravans
Timeshare Resorts
Bed & Breakfast
Marinas

Every 5 star hotel have different accommodation services, in other words they
provide different types of rooms viz.:

Deluxe Room (has double bed facility)

Double Deluxe Room (has two double beds in a room)
Twin Room (has two single beds separated by a centre table)
Interconnecting Rooms (two rooms which shares a common door, mostly

used by families)
Adjoining Rooms (two rooms which share a common hall, mostly
preferred by groups)
Duplex (a room which is been spread on two floors connected by an
internal staircase)
Cabana (a room which is near water body or beside a swimming pool)

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Suite (a room comprises of two or more bedroom, a living room and a
dining area)
Banqueting: Every five star hotel provide with banquet halls. Guest(s) reserve
the banquet halls for their ceremonies or events which includes hotel services
and hotel catering.
Conferencing: Conference room or conference hall is a room provided for
singular events like business meetings and conference. This room is equipped
with furniture required for a meeting or conference, projector, stage lighting and
sound system.
Leisure Facilities: Leisure facilities provide relaxation and keep the guests fit.
The facilities include:

Swimming Pool
Squash Court
Cafeteria
Licenced Bar
Fitness Suite
Aerobics Studio
Spa
Sauna

1.2 structure of different hospitality organization.

An organizational structure determines how the roles, power and responsibilities
are assigned, controlled, and coordinated, and how information flows between
the different levels of management. It can also be considered as the viewing
glass or perspective through which individuals see their organization and its
environment. A structure depends on the organizations objectives and strategy.
The structure that every unit of the hospitality industry follows is the
combination of operational area and functional area.
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Front Office
Front desk is the part of a hotel where a guest pays the first visit. It is
responsible for: Welcoming guests
Reservation
Check-in and Check-out
Escorting the guest(s) to their allotted room(s)
Luggage handling
Providing information regarding the hotel, places to visit, shopping, etc.
Providing transportation to the guests

Respective designations related to this department are:Front Office Manager: She/he must have organising and administrative ability.
She/he must have knowledge of manners, customs, tastes and ways of life of the
main tourist generating countries and must have knowledge of the regulations
governing foreign exchange transactions, organization of the hotel, hotel
accounting, hygiene and safety regulations and relative labour legislation.
Reservation Manager: She/he heads the reservation department, and reports to
the front office.
Room Clerk: She/he reviews the night clerks report to get an idea of the
preceding days occupancy and the number of vacant rooms available for
assignment to new arrivals.
Reception Assistant: She/he must have good general education and thorough
knowledge of the organization of the hotel, guest billing, posting machines,
labour legislation and foreign languages.

Food and Beverage Production

This is the kitchen department. It is the place where food and beverages are
prepared. While large kitchens have independent sections to deal with various
aspects of food preparation due to the sheer volume of activity, smaller kitchens
would club sections or have multi-skilled cooks to carry out service roles. It
includes:-

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Hot Kitchen
Grade Manger or Cold Kitchen
Bakery and Confectionary
Grill and Rotisserie
Still Room
Satellite Kitchen
The respective designations related to F&B production are:Executive Chef: He is the commander of the kitchen. In large hotels he is more
a department manager than a working craftsman. He is responsible for the
organization, planning and supervision of the kitchen.
Sous Chef: Sous means under in French and sous chef is the second chef in
command of the kitchen. S/he is the principal assistant of the chef d cuisine in
general administration.
Chef de Pastry: She/he is the head of bakery section, and is responsible for the
proper functioning of the bakery and confectionary.
Chef de Partie: Partie is a French word meaning part or section. A partie
system is one in which the kitchen space, equipment and jobs are divided into
sections.
Chef Garde Manger: She/he is head of the cold kitchen preparation, and is
responsible for the cold preparation.
Commis: Commis is a general cook who prepares food items. They are usually
provided titles of Commis I, Commis II and Commis III based on their
experience and skill level.
Bartender: Bartender is a person who formulates and serves alcoholic
beverages behind the bar. He is also responsible for the maintenance and supply
for the bar.

Food and Beverage Service

This is the front end of the food and beverage department. Responsibilities are:
Receiving guests
Taking orders (if guest chooses A la carte)
Placing order to kitchen
Serving food and drinks to the guest

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The respective designations related to this department are:Food and Beverage Manager: She/he handles all the staff in food and
beverage service, and also ensure the availability of kitchen related equipment
and tools.
Captain: She/he takes order and prepares KOT (Kitchen Order Take-in/ticket)
and forwards it to the chef.
Executive Kitchen Steward: He is the planner, organiser, director and
controller of the stewarding activity. He ensures that the kitchen and restaurants
smoothly get their needs.
Kitchen Steward: S/he is a supervisory level person responsible for a shift.
Stewarding is a 24-hour activity in a busy hotel.

Housekeeping
Housekeeping refers to the management of duties and chores involved in the
running of a household, such as cleaning, home maintenance, shopping, laundry
and bill pay. These tasks may be performed by any of the housekeeper, or by
other person hired to perform these tasks. The term is also used to refer to the
money allocated for such use.
Respective designations related to housekeeping are: Executive Housekeeper: She/he is responsible for overseeing all
housekeeping operations to deliver an excellent guest and member
experience while evaluating guest satisfaction and setting department
target and objectives.
Room and Public Area Supervisor: S/he is responsible for having
proper working conditions of the entire hotel including guest rooms,
public area, food and beverage outlets, sports facilities, back-of-house
area, and staff facilities.
Desk and Linen Room Supervisor
Attendant/House Person
Linen and Uniform Attendant

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Tailor

Finance
Functional department comprises of: This department is headed by financial controllers
Responsible for monitoring all financial activities of the hotel
Example:

Payroll & cost control system

Keeping records of assets
Liabilities & financial transaction
Preparation of monthly profit & loss statement
Coordination with purchasing department
Handling guests
Inquiries about billing

Account Manager is responsible for sales management, and relationships with

particular guest(s). She/he also maintains hotels existing relationships with
guest(s), so that they use the hotel for business

Human Resource
The human resource (personnel and training) department is responsible for:

Hiring
Orientation
Training
Wages & benefit administration
Labour relations
Employee relation
Staff development

HR Manager is the one who takes care of employee and employee relationships
with the hotel. She/he also recruits new employee and is responsible for staff
training.

Sales and Marketing

Main function involves generating new businesses for the hotel

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Coordinating advertising
Sales promotion activities aiming at enhancing the hotel image

Security
Security is an important concern in every hotel. It is the degree of resistance to,
or protection from, harm. The security department is responsible for executing
procedures which aim at protecting the safety and security of hotel guests,
visitors, hotel employees and the hotel itself.
Example: Monitoring surveillance equipment
Patrolling the hotel premises
Maintaining security alarm systems

1.3 Role of hospitality related organizations and professional

bodies.
There are large number and variety of organizations involved in the hospitality
industry. There are two types of organizations. First is the government
organizations for individuals and organizations, and second are government
agencies which are directly related to the hospitality industry. The roles of these
associations are: To offer better job opportunities for its members
To influence developments in the hospitality industry
The professional bodies in India:
Ministry of Tourism

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The Ministry of Tourism, a branch of the Government of India. It is a nodal
agency that formulates national policies and programmes and co-ordinates
activities of various Central Government Agencies, State Government/UTs and
the Private Sector for the development and promotion of tourism in the country.
This ministry is headed by the Union Minister of State of Tourism.
FHRAI
The FHRAI: Federation of Hotel and Restaurant Association of India is the 3rd
largest hotel and restaurant association in the world. It is the apex body of four
regional associations representing the Hospitality Industry. It is responsible for
providing interface between the hospitality industry, political leadership,
academics, international associations and other stake holders. It is committed to
promote and protect the interests of the hospitality industry. It is also
responsible for providing the star ratings to the hotels in India. FHRAI helps the
hospitality industry to grow, prosper and keep in peace with the development in
the International scenario.
WACS
Also known as world chefs in short is World Association of Chefs Society. It
deals with chef society only. The institute where I am studying i.e. International
Institute of Culinary Arts, New Delhi is also associated with WACS.
Professional bodies in UK:
People 1st
It is a sector skills council for hospitality, leisure travel and tourism. It is
government recognized and industry focused body. It supports development of
skills and training within industry and has 25 sector skills council in total,
covering approximately 85% of UK workforce, representing the skills &
training interests of small to large businesses. The following businesses can be
the part of People 1st:

Contract food service providers

Events

Tourism services

Holiday parks

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Hostels
Hotels
Restaurants
Pubs, Bars, Clubs & Night Clubs
Hospitality Services
Membership Clubs
Travel services
Gambling
Visitor attraction
Self-catering accommodation

British Hospitality Association

British Hospitality Association or BHA is a leading representative organization
in hospitality industry. BHAs role is to promote the interest of operators, brands
and owners across hotels, restaurants and food service, serviced apartments,
clubs and visitors attractions. It represents hotels, restaurants and food service
providers. It works in partnership with government and other associations and
organizations.

British Institute of Inn Keeper

It is a registered charity. It raises professional standards across the sectors. It
develops and awards qualifications specifically for the hospitality sector.

Conclusion
Overall it can said that hospitality sector has been making significant
contribution in the growth of India's economy. That is why its relevance has
increased significantly in past few years. Although due to economic recession in
India there were few issues faced by the sector, but eventually the sector is
warming up to new round of growth and development. Under this optimism
industry leader should not forget to analyse various emerging trends as well
issues which are faced by the sector from time to time.

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REFERENCE

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