UK Hospitality Industry Overview

Introduction:

Hospitality is the broad category of the service industry that offers several services such as lodging, banquet service, food service, event planning, transportation, cruiseline, theme park and other additional fields. Example of the hospitality firms are restaurant, hotels, banquet halls, theme park and event management companies. This report selects the UK based medium sized restaurant, flackley ash hotel & restaurant, that is located in London and offer different ranges of hospitality service such as top-notch modern foods, highly organised room service, health clubs and beauty rooms, banquet service and highly exclusive festive dining . This report is going to explore the different types of business in the hospitality industry and also analyse how this selected restaurant, flackley ash hotel & restaurant, can maintain the interrelation with different departments in its organisation. By analysing the impact of the hospitality industry on the UK based economy this service highlights the way in which global growth and licensing development affect the overall economic growth in the country. Finally this report would highlight the skill requirement for the business development manager of selected organisation to review the skill requirement of the hotel.

Definitions and an exploration of different types of businesses within the hospitality industry:

According to Wang et al. (2016) hospitality industry is the busting industry that offers huge ranges if customer services such as restaurant service, room service, banquet service, travelling service and event management service. Hospitality industry is classified into myriads of categories such as

Food and beverages:

Food and beverage is also known as F&B service, is biggest part of the hospitality service. In UK, it is estimated that more than 50% of the meal eaten by the people is provided by the restaurants and hotels. Flackley ash hotel & restaurant has highly organised and luxurious food and beverage service that offers high quality as well as exclusive foods to its customers. It has classy restaurant which is one of the attractive part of this hotel, offering ranges of foods such as exclusive breakfast, afternoon teas, traditional Sunday lunch including starters and delicious main courses.

Travel and tourism:

This is one of the important services under the hospitality industry, which offers customers with comfortable journey from place to place by arranging the transpiration, accommodation and food service (Radojevic et al. 2015). Sometimes, travellers are engaged only in booking the booking the accommodation and food service in different places rather than arranging the transportation facilities. Selected organisation, flackley ash hotel & restaurant, is although not directly involved in any travelling and tourism business, it has strong connection with different travel agents and tourism companies. Business development mange of this company has maintained strong business relation with this travel to grab the opportunity of attracting huge number of customers.

Lodging:

This service offers highly classy accommodation facilities to guests with luxurious rooms in the resort and campground. Through service high quality lodging facilities, hotels provide comfortable stay and sleep for the guests. In this aspect flackley ash hotel & restaurant provides high quality accommodation service to customers with ranges of room service such as feature room, garden room, beauty and health rooms, gallery rooms and suits and family rooms. Apart from the general; lodge service, flackley ash hotel & restaurant also offers luxurious suits to its customers for stay, which provides the highly classy accommodation service to the guest in order to meet all their accommodation needs.

Recreation:

Apart from the accommodation, foods and travelling there are another type of hospitality business, recreation (Kandampully et al. 2015). This service offers luxurious places to people for rest, enjoyment and relaxation; the aim of this recreation service is to provide freshness to the people’s mind and body. Sometimes, hotels and hospitality firms are involved in offering high level of entertain to customer through playing movies and theatre in the recreation hall. In case of Flackley Ash hotel & restaurant, it provides huge ranges of recreation services such as spa service, beauty rooms and health club facilities. Through providing highly classy gym and fitness rooms, spa and beauty acre rooms and swimming pools this hotel improve it customer experience.

Examination of how a hospitality organisation of your choice such as a restaurant or hotel can be structured and review of the interrelationships of different units/departments within the organisation:

Each hospitality organisation needs to maintain a clear and highly organised organisational structure that assists different staff in that company to make proper interrelation with one another (Law et al. 2014). Flackley Ash hotel & restaurant maintain a clear organisational structure that assists the mangers to specify the task for each department as well as delegate the authorities among and within the departments. In the top most hierarchy of Flackley Ash hotel & restaurant, there is general manager who is responsible for oversee as well as supervise the overall activities and operation of all the departments. General Manager of this hospitality organisation has classified the overall staffs under the four chief classes which are:

Policy making and implementing team Heads of the assistant department Heads of the bomber section General staffs and operating forces

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Executive assistant manager:

As stead by Solnet et al. (2015), below the tope most hierarchy, there is assistant general manager who deals with maintaining proper coordination among different department in order to maintain the operational cooperation among them. Assistant manager of Flackley Ash hotel & restaurant focuses checking whether the entire department in this organisation performs their task in well organised manner. Moreover, the assistant manger also analyse the roles and responsibility if the individual mange of different department.

Departments:

Below the hierarchy of assistant manager and general manger in there are operating different department in a hospitality organisation. Flackley Ash hotel & restaurant has diffrent deportments that works under the hierarchy of general manager such as room division, accounting, marketing and sales, purchasing, engineering, food & beverage and personnel.

Different departments:

Food and beverage:

Flackley Ash hotel & restaurant has highly classy as well as organised food and dinning service. As stated by Zervas et al. (2016), this department deals with service and offering high quality foods and beverages to customers. Flackley Ash hotel & restaurant serves high quality foods and dining service to all the customers by offering delicious starters, lunch and exclusive dining service to all the customers.

Front office:

This department of Flackley Ash hotel & restaurant deals with reservation, receiving order, and taking customer request. Staffs of this department deals with different demand of customers and send this information to different relevant department.

Food production:

This department of the hospitality industry deals with preparing delicious foods and drinks that will meet the nutritional and taste requirement of the customers (Kandampully et al. 2015). Flackley Ash hotel & restaurant has highly efficient cooking team and kitchen staffs that focus on preparing highly delicious foods as per the customers’ demands. Moreover, the staffs are highly efficient in service foods in professional manner to provide the customers with lavish as well as luxurious restaurant experience.

Housekeeping:

It is one of the most important departments in each hospitality organisation, which deals with maintaining proper cleanliness and hygiene within the organisation. Flackley Ash hotel & restaurant has high efficient housekeeping team that provides high quality cleaning service ti each rooms, garden areas and different places of this hotel, for providing each customer fresh as well as clean environment.

Accounting:

Flackley Ash hotel & restaurant has highly organised and professional accounting team that deals with audit, billing, payment and different accounting service. Moreover, this department maintain al, the account files and document of thus restaurant to assists the mangers and board of directors to maintain strong financial framework of this organisation.

Human resources:

As stead by Zervas et al. (2016), human resources is important part of hospitality industry which recruit the best as well as appropriate candidates that can manage the different hospitality service thereby can meet the huge demands of customers. Flackley Ash hotel & restaurant has highly organised HR team which focuses on recruiting the high efficient candidates that can deal with the different demand of the customers. Moreover, HR team of this company conducts different training and development programs for the organisational staffs to improve their efficiency level.

Banquets and catering:

Banquet and catering are two important departments in the hospitality organisation. Banquets and catering has highly professional banquet staffs who serves foods and drinks, reviews huge customers and provides high level of relaxation as well as greetings to the guest. Through providing luxurious catering service, it provides customer positive experience that convinces the customer to chose hotel for the next time.

Technology:

For managing proper coordination among different deportment of the hospitality organisation, proper technological implementation is important (Jung and Yoon, 2016). Flackley Ash hotel & restaurant has separate technical team that deals with different software, hardware, technical operations such as online payments, tracking the operation of different through using the footage of the CCTV and making online supervision on the financial operation, this department also deals with managing and storing the database of customers and staffs by using different online application software which is password protected. Apart from the abovementioned department, Flackley Ash hotel & restaurant also has some other department such as security service, telephone, uniformed service, reservation and convention service.

Discussion on the direct and indirect impacts of hospitality industry on the UK economy and another country of choice

Contribution of hospitality industry into the UK economy increases in faster rates as compared to any other industries. The ONS database shows that, due to development different hotel and restaurant in UK, there is possibility of creation of more than 500,000 jobs in the UK based regions. As stated by, hospitality industry is fourth largest industry in UK, which accounts for more than 3.2 million jobs as well as 2.8 millions indirect jobs in UK. Recent researchers suggest that, the UK basic Hospitality’s gross value added (GVA) rate is nearly 5.9% which is doubled that of the economy. Moreover the ONS database also shows that labour productivity also increases in UK by at least 3.2 %. The industry GVA also increases from the 1.5% in the last years to 3.4% in 2017.

On the contrary Liu and Zhang (2014) argued that, although there are several economic contribution of the hospitality industry in the UK based economy, Brexit has pose adverse impact on this service. Due to Brexit, majority of the hotel management staffs that previously are hired from EU countries, find their jobs in EU based hospitality organisation that leads to huge shortage of the staffs. Moreover, before Brexit, majority of the funds in the hospitality industry come from the EU countries, but after Brexit, UK cannot access the EU based investment that not only affect the overall hospitality industry but also affect the different industrial sectors in the country.

Pre-budget submission of Ireland shows that, hospitality in this country is faster growing industry with lots of direct and indirect job opportunities. Irish restaurant and hotels account for employment for 170,700 people. The VAT cut by the Irish government increases 54,400 direct jobs with additional 25,041 indirect jobs in the market. Moreover teh development of employment leads to development of the economic growth of Ireland.

However, recent economic slowdown in the manufacturing and agricultural sector in the Ireland poses some adverse impact on the Irish restaurant and hotel industry (Schuckert et al. 2015). Moreover, in most of the cases, the hotels and restaurants are unable to collect the fresh fruits, vegetables to offer delicious foods to the customers. Moreover, sue to Brexit, Ireland is also affected by the shortage of labour and staffs. Ireland also faces several constraints in order to get proper investment from the UK based countries dud to the economic slowdown, therefore the overall scenario of the hospitality industry it h Ireland leads to the fact the this, although has several opportunities in the hospitality industry it has to cope with the ever increasing market as well as economic challenges due to Brexit. For combating these challenges, Ireland hospitality industry focuses on the following aspects:

Counter act the labour shortage and lower fund Minimisation of the danger of the Brexit Enhance access to the work permit for hospitality staffs Reduction in the excessive insurance cost Enhancing the competitiveness to implement the Ireland National Tourism Policy

Analysis of how global growth, franchising, and licensing developments have contributed to the economic worth of the hospitality industry

Global growth, franchising and the licensing affect the overall operation and activities of th hospitality industry. As stated by Jauhari and Bharwani, (2017), due to economic growth in the UK, the restaurant and tourism business have gained huge profit that assist the marketers of these industry to deal with any sudden market challenges. In case of Flackley Ash hotel & restaurant, global economic growth has already influence the overall operation and strategies of this organisation. For example, global economic growth has increased the opportunities for UK based hospitality organisations such as Flackley Ash hotel & restaurant to get huge amount of investment from the international investors to maintain proper coordination among their services.

Franchise business provides opportunity to all the staffs of Flackley Ash hotel & restaurant in order to expand its business all over the UK as well as in the world. As stated by, through franchise and licensing development government can provide the high level of support to different industries in terms of getting authority to operate their business in overuses market. UK government focused countries on strengthen its relation with Australia, Ireland, EU and other developing countries such as China and India. This initiative assists the UK government to get facilities regarding licensing and franchise business for several industries, especially hospitality industry. Recent FTA Free Trade agreement) assists the hospitality management organisation in UK to get proper licence to operate their franchise business Ireland, Australia and India, which positively influence the overall global growth of the UK.

Investigation of a range of different operational roles in selected restaurant or hotel

Selected UK based hospitality organisation, Flackley Ash hotel & restaurant operated myriads functions such as food and beverage service, catering, banquet service, dinning service, efficient room cleaning and housekeeping service, spa service, beauty and other recreational service. Staffs from different department are highly efficient in offering the best quality service to each customer. This restaurant has high efficient and well-educated mangers with years of experience who manage the service of different departments. For example, banquet deportment deals with receiving the guest, serves delicious foods for them and caters the food in well organised manner. On the other hand, this hotel provides high quality beauty and spa service, which offers the high level off relaxation to each customer. In addition to this, this hotel also offers front desk service, in which the staffs receive different demand of each customer and send the information to the relevant departments. It has highly effective technology deportment that assures the customers to have highly secure online payment and order system without facing any inconvenience.

Review the skills requirements for the roles you have identified for selected restaurant or hotel and the current skills shortages in the market

As stated by Wang et al. (2014), skill is important for the all the organisation to maintain string coordination between the different department and mangling the quality of output. Flackley Ash hotel & restaurant requires highly skilled as well as efficient staff fir dealing with different types of services. For the food and beverage department, Flackley Ash hotel & restaurant needs candidates who have good knowledge on the food preparation, nutritional values if different food items and current food demand in UK.

For accounting, Flackley Ash hotel & restaurant required highly qualifies Chattered accountants, who can handle the account details of this company,. Moreover the chattered accountant can suggest proper ways un which this company mange its account, in additional to this, moreover the chattered accountant will handle the overall account details of each staffs and their customers in order to ensure that proper transaction is conducted through this organisation.

For sales and marketing, this company requires candidates who have long terms experience in the, marketing and sale field. Moreover, it is important that, the marketing and sales would believe on high level of innovation rather than focusing on the traditional marketing viewpoint, thereby can assist this company with innovative marketing ideas and thoughts.

Analysis of some contemporary factors driving skills shortages and high labour turnover in the UK hospitality industry

By analysing the ONS database in the contemporary factors, it can be seen that, different factors are associated with the skill shortage as well as high labour turn over in UK. As stated by Kang et al. (2015), Brexit is one of the important aspects that affect the overall, labour market in the hospitality industry. Due to Brexit, UK faces several restrictions on Find management and labour management in hospitality industry. Before, Brexit, majority of the fund comes from EU countries. Moreover, majority of the labours in the restaurants and hotels industries in UK are belonging to the EU countries. Now exit of Britain from EU leads to pose constraints on accessing the EU funds. This Post-Brexit condition affects the labour market badly. Moreover, EU is the hub if most if the skilled marketers and management students. After Brexit UK is unable to hire these marketing students and high skilled staffs due to the political decisions and agreement.

Economic slowdown in the global hospitality framework changes the viewpoint of different future, marketer. Therefore, majority of the students do not chose the hospitality management studies in the higher education. ONS study shows that, more than 45% of the students prefers industries other then hospitality industries.

Poor availability of fund in the UK based hospitality sector after the Brexit, makes the marketers unable to pay high salary to the staffs as compared to the other industries. This situation leads to high level of lack of job satisfaction which leads to high level of turnover of labour.

Analysis of the impact of skills gaps on hospitality businesses in the UK and recommend valid solutions to address the skills gaps

Skill gaps affect the overall productivity and the quality of product and service of an organisation, in hospitality industry the skill gaps leads to poor management of different hospitality services such as catering, food and beverage, recreational service, tourism service. In case of Flackley Ash hotel & restaurant, marketers focus on proper skill management, through which they can maintain the quality of their service. As stead by skills gaps, affect the overall, reputation of an organisation in the international market, therefore it is important for the organisation to improve the skills and efficient of the staffs in order it gain the better service.

Conclusion:

This report concludes that, hospitality industry deals with several services such as catering, dining, banquet, event-management and recreational service. The selected organisation Flackley Ash hotel & restaurant has highly organised structure that assist the managers to specify eth different job roles for different staffs. Moreover hospitality industry in UK affects the overall economic growth. After Brexit, the fund and; labour availability in t hospitality industry has been reduced. Therefore, UK need to focus on improving it political relation with developed countries to improve the economic growth in hospitality industry.

The operations and marketing decision of the hospitality industry in UK is affected by the external and internal environmental factors under which the companies operate. External factor are also known as the macro environmental factors such as political, technical, economical, social, legal and environmental factors that affect the overall, business strategies and operation of the hospitality organisation. On the other hand the micro environmental factors is the internal environmental factors such as strength, weakness, opportunities and threats for the selected organisation, this report will determine as well as review the impact of external and internal environmental factors on selected UK based hospitality organisation, Flackley Ash hotel & restaurant. Moreover, this report is going to demonstrate the current potential changes in the hospitality industry in terms of developing its business framework. In additional to this, this report will also analyse the different issues that this selected hospitality organisation faces during dealing with the external and internal environment

Critical evaluation of the impact of external factors (PESTEL of Flackley Ash hotel & restaurant)

Critical evaluation of the impact of internal factors (SWOT of Flackley Ash hotel & restaurant)

Analysis of the factors that impact on the supply and demand of products and services:

Different factors are associated with the demand and service in this hospitality industry. The factors are demographic factors, Social factors, Technological factors, and income, safe and security issues.

Demographic factor:

As stead by Zervas et al. (2017), demographic changes pose huge changes on the hospitality industry. For example, rapid urbanisation of the rural regions leads to development of new demands of foods, catering service, tourism industry, hotel and recreational services. Location of Flackley Ash hotel & restaurant is highly crowded and metropolitan area which assuists this company to get huge number of target customers. As stated by Leung et al. (2015) demographic advantages and disadvantages also affect the income level of people that directly affect the profits and business expansion of the hospitality industry. Flackley Ash hotel & restaurant, although situated in highly crowed and well-established region of London, face the issues of not covering the demand of the people in other parts of the UK such as England and Wales. However, as the London has the highest population in UK, Flackley Ash hotel & restaurant has the advantage of grabbing huge number of customer with their different hospitality needs. Moreover, as the locality in which this company is situated consist large number of ageing and food lover people, it increase the demand of relaxation, tourism, hotel and restaurant service inn this regions. As the location of Flackley Ash hotel & restaurant is urban as well as metropolitan area, it gets the legal, political and trade advantages of the UK government as compared to different small sized hotels and restaurants situated in the suburban regions of the UK, in terms of getting proper supply of raw materials and staffs. Moreover the urban location is high attracted job opportunities for the job seekers. Therefore, Flackley Ash hotel & restaurant is able to get huge number of staffs due to the demographic advantage that assist the mangers to meet the ever increasing demand of customers.

Social factors:

Social factors also affect the overall service and product of hospitality industry. According Dubey et al. (2016), changing perception of the customers in UK order to get the hotel service , restaurant service and recreational service, pose huge pressure on the marketers of hospitality organisation to reforms as well as standardise their service. However, increasing number of ageing population in UK increases the demand of hotel, restaurant and recreational service, as they want to spend their quality time with family by staying in luxurious hotels, eating healthy as well as delicious foods and having the lavish recreational service of different hotels (Yang and Cai, 2016). This changing perception in the society poses positive impact on Flackley Ash hotel & restaurant, in order to grab huge number of customers to meet their needs. Moreover, there are some disadvantages of the changing social perception in UK which provokes people to transform their choice from the luxurious goods to the eco-friendly service. Therefore, Flackley Ash hotel & restaurant needs to improve their service in such a manner that would provide the eco-friendly service two the customers such as healthy and fresh environment with full of greeneries. Moreover, marketers of this organisation needs to make possible relevant changes in their market strategy to adapt their business with this changing social trend that affect the demand and supply of the hospitality industry.

Technological factors

Technology always makes positive effects on improving the demand and supply of services in the hospitality industry. Due to implementation of technologies in different hospitality activities such as order placing, online communication with the customers and the online booking of the hotel rooms as well as delicious foods, improve the process of customer engagement with the hospitality organisation (Phillips et al. 2017). With increasing number of customer engagement, the demand of the hospoitality services is also increases. This huge demand poses huge impact on the hospitality organisation in order to improve their service to meet the ever increasing demand of the people. Therefore, Flackley Ash hotel & restaurant needs to implement technology in each activity to provide faster as well, as quality service to customer for meeting the ever increasing demand in the community. Moreover, technological advancement assists the customers to make analysis on comparative prices of different hotels, tourism companies, restaurant and recreational services. Therefore, technologies increase demands of hospitality service of particular organisation that can be efficient in meeting customer’s needs. In this aspects Flackley Ash hotel & restaurant needs to improve their service and products that can enhance the demand of their service and product in the society.

Income:

As stead by Jauhari and Bharwani, (2017), income play important role in order create proper demand in the market. Purchasing power on UK based community is associated with the global economic growth, different external environmental factors and employment. Although UK has several people who believes in luxurious as well as lavish hospitality service, but lots of the people residing at the middle and lower level of the society are unable to afford the costly service of the different five start hotels and restaurant. In this aspect, Flackley Ash hotel & restaurant focuses on providing the luxurious as well as high quality service to the people. Therefore, this organisation needs to improve its connection to the other countries except UK to attract the overseas rich customers to improve the brand reputation of this organisation. Moreover, distribution of most of the national income to the top social class people, leads to make limited demand for the hospitality service in the community which has only the richest people. Therefore, Flackley Ash hotel & restaurant can focuses on opening service for the middle and lower class class people, such as low cost but healthy food service to the poor people, in which they can get healthy food in minimum price.

Safe and security issues:

If the hospitality organisation provides highly secure and safe accommodation, food service and entertainment service then it would attain high demand of its services (Wang et al. 2014). In this aspects, Flackley Ash hotel & restaurant offers highly safe and secure rooms with maintaining the privacy as well as confidentiality of the customer that can assist the customers to spent their quality time well. Therefore, there is high chance for Flackley Ash hotel & restaurant of getting huge demand which pose severe responsibilities on the marketers to deal with each demand and work on it.

Analysis of the implications of current and potential trends affecting the hospitality industry in the UK

Current social, economic and demographic trend affect the overall policies and operational of the hospitality industry. As stated by Kang et al. (2015), economic slowdown in UK affect the purchasing power and buying capacity of society people which affect their ability to investment into the hospitality service. Moreover, a demographic advantage is also associated with sales and promotion of the particular organisation. In this aspect Flackley Ash hotel & restaurant is situated in urban area in London, which has several demographic advantages such as availability of transport, and highly crowed community near hotels. Current social trend that makes transformation of the customer’s choice from luxurious service to eco-friendly service, can affect the overall marketing decision of Flackley Ash hotel & restaurant. In this aspect, it is important for Flackley Ash hotel & restaurant to improve its operational strategy and marketing decisions in order to combat with all these social, demographic, financial and technological changes.

Conclusion:

From the above discussion it is concluded that, different macro and micro environment l factors affect to overall, business decision and the marketing strategy of hospitality organisation. Macro environmental factors includes political, social, economical, technological, environmental and legal. The micro and international environmental factors are strength, weakness, opportunities and threats within the organisation that affect directly its operation as well as its marketing decisions. Flackley Ash hotel & restaurant, therefore, needs to improve the service and the marketing strategy that will assist the marketers to deal with different factors such as social, demographic, financial and legal factors.

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