Business in Contemporary Hospitality Industry

Contemporary hospitality is defined as the modern way which is the living or the coming into of the hospitality industry. In likely to apply to people and what relates to them. Hospitality is the relationship between guest and host, or the act or practice of being hospitable. Specifically, this includes the reception and entertainment of guests, visitors, or strangers, resorts, membership clubs, conventions, attractions, special events, and other services for travelers and tourists. Hospitability originated and traced back from the Biblical times and the beginning of the Industrial Revolution in the 17th Century in Europe.

In Middle Eastern Culture, it was considered a cultural norm to take care of the strangers and foreigners living among you. These norms are reflected in many Biblical commands and examples. In India, hospitality is based on the principle Atithi Devo Bhava, meaning "the guest is god. " This principle is shown in a number of stories where a guest is literally a god who rewards the provider of hospitality.

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From this stems the Indian approach of graciousness towards guests at home, and in all social situations.

Originally some of these services were provided for free by home owners who were kind enough to assist travelers and hospices that were purposely put up by communities in order to assist travelers. Later, the early inns provided some form of shelter and care to travelers at the beginning of the Industrial Revolution at a fee. Provision of hospitability services were later commercialized and increase to include

  • well maintained accommodation
  • well prepared food
  • beverages

Due to the increase in commercial activities the industrial revolution prompted hospitability industry

  • increase in the number of inns
  • increase in the size of individual inns
  • increase in the types of services offered

The early inns developed into motels and hotels and as the industry grow wider and wider the competition started to become stiff.

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The motels and hotels varied in;

  • quality and size and services, in class and capacity
  • type food in according to the menu content
  • accommodation in the room types and amenities
  • other, in the location

The increase of competition and development led to today’s modern hotels, which is changing in time due to the technology.

Hospitability frequently refers to the hospitability industry jobs for hotels, restaurants, casinos, catering, resort, clubs and any other service establishment that deals with guests or people who are away from home or their normal residence. The hospitality industry covers a wide range of organizations offering food service and accommodation, to the foreign and domestic. The industry is divided into sectors according to the skill-sets required for the work involved. Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information.

Food and beverage In this segment service food and beverage are provided to the public at leisure or travel. The various place where to get food and beverage services restaurants, cruise ships, air planes, trains. In the market of the hospitality industry all the places that provide food and beverage services are differentiate by if the establishment understands the guests need and expectations, quality of service if its fast and efficient, the range of foods or beverage, price, standards and environment sustainability awareness and location.

Following a steady growth in the standard of living, changing lifestyles, increased information rate due to technology, advancement in travel infrastructure more and more people take holidays abroad or simply eat away from home. As a result the food service segment of the hospitality industry has had a rapid growth and diversification in scope during the last few decades.

Accommodation

Accommodation is lodging in a dwelling or similar living quarters afforded to travelers in hotels or on cruise ships, trains, tents, cottages, or prison. Accommodation may vary by t the products or items that are found in the rooms size of the hotel, the market targeted and level of service. Accommodation services are covered by different types of groups this includes the provision of short stay lodging in hotels, motels and inns, excluding the rental of long-stay accommodation and time Share operations; covers camping sites and other short-stay accommodation, including self-catering holiday chalets or cottages. On-line booking has grown to account for a significant proportion of revenue for the accommodation services sector.

According to survey one commerce, the share of Turnover generated via the Internet in the accommodation services sector. Relative services The hotel generates money through the services that they offer, however there might be some revenue generators that are specific to certain hotels but not existing in others. Below is a list of some possible extra or other divisions that might exist in a hotel:

  1. Retail Outlets (i. e. Shops rented to outsiders or managed by the hotel)
  2. Recreation Facilities (e. g. Fitness Center, Tennis Courts, and Cinema Saloon)
  3. Conference Centers d)Casinos Hotel division and department

Department within a hotel are classified according to a variety of methods. According to one method, each department is classified as either a revenue centre or a support centre. A revenue centre being sells goods or services to guests and thereby generates revenue for the hotel; examples are the front office and food and beverage outlets. The support canters do not generate revenue directly but play a supporting role to the hotels revenue centre examples housekeeping, accounts, maintenance and human resource. The terms front of the house and back of the house is also another way of classifying hotel departments and the personnel within them.

The following are sections briefly describe the major divisions and departments typically found in a large hotel. Food and beverage division A major revenue centre in most hotels is the food and beverage division. There are almost as many varieties of food and beverage operations as there are hotels. Many hotels offer guests more than a single food and beverage outlets. Outlet types include quick service, tables service, specialty restaurants, bar, coffee shop, lounge and club. The food and beverage division typically supports other hotels functions such as room service, catering, and banqueting planning.

The executive steward supervises most of the kitchen sanitation and cleaning duties. However the housekeeping department may be responsible for cleaning specific areas of the hotel’s dining rooms, banquet rooms, and some back of the house.

Sale and marketing division

The sale and marketing staff within a hotel can vary from one part time person to a dozen or mare full time employee. These personnel typically have four functions

  1. Sale
  2. Convention service
  3. Advertising
  4. Public relations

The marketing arm of the division researches the marketplace, competing products, and guest need and expectations and the n develops sales action plans by which to attract guests to the property. The primary goal of the division is to sell the products and services offered by the hotel. Rooms division The rooms division is composed of departments and functions that play essential roles is providing the services that guests expect during their stay. In most hotels the rooms division generates more revenue than any other area in the hotel.

This department is usually the most important revenue centre in a hotel. The front office is the most visible department in a hotel and has the greatest amount of direct guest contact. Front office consists of the front desk, cashier, reservation, telephone, mail and information sections. The front desk itself is the focal point of activity within the front office department guests are registered assigned rooms and checked out at the front desk. Housekeeping is the act of cleaning the rooms and furnishings of a home.

It is one of the many chores included in the term housework. Housecleaning includes activities such as disposing of rubbish, cleaning dirty surfaces, dusting and vacuuming. They have to clean the room and stock up the guest’s rooms before and after the guest has leaves and arrives, accordingly. The hotel’s uniformed service staff may include parking attendants, door attendants, porter, limousine driver and bell person. Uniformed service staff meets and greet guests and help them upon their arrival and departure.

Engineering and maintenance division

A hotels engineering and maintenance division is responsible for maintaining the appearance of the interior and exterior of the property and keeping its equipment operational. This division typically responsible for swimming pools, sanitation, and landscaping and upkeep of the property grounds. Not all engineering and maintenance work can be handled by the hotels staff. Often problems or projects require outside contracting. Human resource The sizes and budgets of human resource divisions have grown steadily, along with their responsibility and influences.

Recently the scope of human resources management has changed in response to new legislation, the shrinking labor market and the growing pressures of competition. Human resources may include employment (recruiting external and internal, reassignment) orientation and training, employee relations, compensation benefits, labor relations and safety Accounting division A hotels accounting division is responsible for monitoring the financial activities of the property. Some hotels employ off premises accounting services to complement the work of their internal accounting division.

The hotels controller manages the accounting division. Accounting activities include; paying invoices owed, distributing statements and collecting payments, processing payroll information, accumulation operating data, and compiling financial statements. In addition, the accounting staff may be responsible for making bank deposits, securing cash and performing other control and processing functions required by the hotel. Security division Security staffs includes in the house personnel, contract security officers, or retired or off duty police officers.

Security responsibilities may include patrolling the property, monitoring surveillance equipment, and in general, ensuring that guests, visitors and employee are safe and secure at the hotel. The cooperation and assistance of law-enforcement officials is critical to the security division’s effectiveness’.

ORGANISATIONAL STRUCTURE IN THE HOSPITALITY INDUSTRY

General Manager

The General Manager oversees all aspects of the hotel operations including: guest relations, front desk, housekeeping, maintenance, finances, team building, and staff development. The General Manager must possess strong communication skills, both verbal and written, and demonstrate outstanding leadership. The manager must be able to delegate responsibilities, organize complex projects, and establish priorities consistent with hotel objectives. General Manager mainly includes managing and coordinating work of the process managers working under the GM. The duties also comprise devising and planning of company policies, and discussing them with the top management for final approval. A general manager develops guidelines of operation for certain processes, which are directly under his authority.

The general manager has to devise and set up an annual budget and fiscal plan, and present it before the board of directors. He has to prepare elaborate reports of the functioning and all the company departments, and submit the reports to the top management for practice performance review. A general manager has to travel on a national and international level to visit potential clients and discuss business with them. A general manager can even play an important part in recruiting and training process managers under him.

Imparting training to new practice managers regarding how to increase employee performance is also one of the most important responsibilities of general manager. In a sales and marketing company, the general manager discusses the plans are marketing strategies with sales managers to increase the company profits. The GM has to make sure that all departments and practices are working as anticipated by the company's annual plan.

Executive chef

An executive chef, also called the chef de cuisine or head cook, runs the kitchen in a restaurant, country club, and hotel or cruise ship. The duties of an executive chef include training staff, maintaining quality, assigning tasks, ordering supplies and planning meals. Typically, an executive chef's day begins with menu planning. The menus must fit in with the budget allotted to the chef. The executive is responsible for ordering any needed food and equipment for the kitchen. Executive chefs should make and keep good working relationships with vendors. A good head cook also keeps up with new trends in food as he or she must create new dishes and menus that are appealing to the clientele of the restaurant or other venue.

A head chef oversees the way a kitchen operates. In most cases, the staff of the kitchen report either directly to the head chef or to an assistant. Generally, she will also decide what equipment is necessary and what ingredients need to be kept in stock. In some situations, the head chef will create the menu, decide on the specials, and choose the portion sizes and appearance of the meals. In addition, she may be responsible for keeping the cost of the kitchen within a set budget, managing employees, and forecasting trends in the restaurant business, and maintaining a safe kitchen according to health codes of the area.

Head chefs typically work in restaurants, hotels, catering companies, retirement communities as well as other commercial dining establishments. Sous chef In the competitive ranking system of kitchen staff, the Sous chef serves directly under the executive chef and serves as the head chef's second in command. This position carried with it a number of important duties and responsibilities such as

  • Gives an extra hand to the executive chef.
  • help in the day to day running of the kitchen
  • delegate responsibility among the rest of the staff coordinating and organizing the kitchen, such as making sure all dishes at the table are ready to be delivered at once

Chef de partie

Chef de Partie has the responsibility for the food production management of a specific kitchen section. Chef de Partie work in larger kitchens where there are a number of sections to handle and supervise. Each separate section of the kitchen is also known as a ‘station’, hence the name ‘station chef’. Chef de Partie has to shoulder the responsibilities of managing food production in the specific section that they have been assigned.

Marketing manager

Key responsibilities of the marketing manager / director vary according to the business but can include:

  • Instilling a marketing led ethos throughout the business
  • Researching and reporting on external opportunities
  • Understanding current and potential customers
  • Managing the customer journey (customer relationship management)
  • Developing the marketing strategy and plan
  • Management of the marketing mix

Accounts manager

Almost every industry has Account Managers who work with other members of the firm and their clients. Account Mangers work with sales, customer services and account executives to make sure everyone is happy and that everything is running smoothly. Account Managers are responsible for keeping clients happy by completing products and or projects to a client's specifications. Account Managers must be swift in resolving any issues. They also work with the sales team to make sure advertising is doing its job and to organize, plan and develop sales plans. An Account Manager may be in charge of a branch office and its staff. They may be responsible for marketing the company within their area of business.

An Account Manager must be familiar with all the company's products and or services and may be required to give presentations promoting them. Food and beverage manager To ensure service is delivery at every point of sale in the Food and Beverage Department. He or she therefore supervises and co-ordinates the Food and Beverage Department. Key Responsibilities

  • To ensure that the customer promise is delivered and that customers are satisfied within the framework of financial targets set.
  • To ensure that guests receive high quality service To ensure that the applicable regulations are complied with
  • To be responsible for his or her own results
  • To optimize the supply chain and the use made of raw materials

Human resource manager

Human Resources Generalists, Managers, and Directors, depending on the size of the organization, may have overlapping responsibilities. Human Resources staff members are advocates for both the company and the people who work in the company. Consequently, a good HR professional performs a constant balancing act to meet both Duties/functions may include, but are not limited to, the following: Manages and organizes multiple functional areas within Human Resources including providing technical direction to technical/professional and clerical staff within assigned areas.

  • Consults with and advises administrators and employee representatives on personnel-related policies and procedures.
  • Interprets and communicates laws and regulations to ensure the agency is aware of its legal responsibilities; in conjunction with the Legal Department
  • Develops and implements personnel rules and regulations, and interprets and administers human resources-related provisions of collective bargaining agreements.

Executive Housekeeper

The Executive Housekeeper is responsible for all duties of the housekeeping operation and cleanliness levels in all areas of the property. Responsibilities include: staff training, inter- department communications, and staff scheduling. The Executive Housekeeper will promote an atmosphere that insures the company mission statement, “Friendliness and Cleanliness”. This position requires strong attention to detail, leadership skills, and the ability to effectively deal with department heads, guests, and team members.

Assistant Executive Housekeeper

The Assistant Executive Housekeeper supports the Executive Housekeeper in all duties of the housekeeping operation and cleanliness levels in all areas of the property. Responsibilities include: staff training, inter-department communications, and staff scheduling. The Assistant Executive will promote an atmosphere that insures the company mission statement, “Friendliness and Cleanliness”. This position requires strong attention to detail, leadership skills, and the ability to effectively deal with department heads, guests, and team members.

Continental Breakfast Attendant

The Continental Breakfast Attendant is responsible for setting up the daily complimentary continental breakfast, ensuring that the breakfast items are well stocked, and cleaning up after breakfast. This position requires multi-tasking abilities and ability to effectively communicate with guests regarding breakfast offerings and basic hotel information. A valid Food Handler’s permit is required.

House person

The House person is responsible for maintaining the cleanliness and appearance of the hotel and providing customers with quality service in a timely and friendly manner. Responsibilities vary but may include: cleaning and maintaining the appearance of the public areas of the hotel, deep cleaning of assigned areas, setting-up and maintaining complimentary hotel lobby functions including the coffee service and nightly concierge events, cleaning and setting-up meeting room functions, restocking housekeeping stations, delivering service items to guest rooms upon requests from the front desk, and driving shuttle van when needed.

Chief Maintenance Engineer

The Chief Maintenance Engineer is responsible for maintaining the overall operation of the maintenance department and the appearance and working order f the hotel. The engineer must be able to work independently, as well as, with others. Responsibilities may include: maintaining the exterior of the building, parking lot, and common areas, driving shuttle van as needed, maintaining all equipment in guest rooms, conducting monthly safety inspections and training the staff on safety and emergency procedures, and working with vendors. The Chief Maintenance Engineer must be willing to respond to emergencies, even if after hours, and work with corporate maintenance on special remodeling projects or capital expenditure needs.

This position requires overall maintenance knowledge and trouble shooting ability with skills in painting, HVAC, carpentry, equipment, and tool usage. Assistant Maintenance The Assistant Maintenance Engineer supports the Chief Engineer in maintaining overall appearance and working order of the hotel. This position must be able to work independently as well as with others. The Assistant maintenance position requires overall maintenance knowledge and trouble shooting ability with skills in painting, HVAC, carpentry, equipment, and tool usage.

Front Office Manager

The Front Office Manager is responsible for all duties of the front desk operation which includes: staff training, inter-department communications, and staff scheduling. The FOM usually works a regularly scheduled front desk shift and must be available to work any shift as needed. The Front Office Manager should possess strong communication skills and demonstrate leadership abilities.

Security manager

The duties of Security Manager include but are not limited to the following;

  • Crime Prevention and Investigation Responsible for maintaining a secure environment through ensuring the security of the physical hotel plant.
  • Act as liaison between hotel and any governmental agencies such as police, fire and any safety regulatory bodies.
  • Establish and maintain procedures to reduce any internal theft/losses.
  • Establish and maintain procedures for the escort of employees transporting large sums of money.
  • Establish and maintain policy for employee locker control.
  • Establish and maintain policy for spot checks of employees carrying parcels when departing hotel property to ensure only employee personal property is leaving.
  • Coordinate investigation of all act of crime, or any losses incurred against by guests, patrons staff, and Hotel Company in order to determine those responsible and proceed with any necessary prosecution/recover of losses.
  • Must learn to personally conduct door lock readings, CCTV surveillance equipment, etc, in order to handle sensitive investigations.

As the hospitality sector gears up to welcome an era of growth, there are several critical influencers that will play a key role along the way

The Maturing of Hotel Markets

About a decade ago, there were really only a handful of major hotel markets in the world, a result of businesses primarily being based in and needing hotel rooms in these cities. Thus, while visitors to these major cities had a choice of several luxury and upscale hotels, affiliated with both domestic and international brands, the availability and quality of hotels declined significantly when venturing to the smaller cities. Another trend that has now emerged in the various major markets is the growth of micro-markets, especially in the primary cities.

As commutes in larger cities are increasingly measured in amount of travel time rather than distance, people are choosing to stay at hotels that are located closer to their place of work, thereby saving crucial travel time that might otherwise have been wasted in traffic. Key Game Changers:

  • Emergence of secondary and tertiary cities
  • Emergence of micro-markets
  • Continued marketing
  • Continued improvement of infrastructure in cities and towns in the world.
  • Development and marketing of niche tourism like medical tourism, religious circuits, adventure tourism etc. Hotel Brand Explosions

A decade the hospitality industry was primarily dominated by the domestic players with only a handful of international brands having a token presence in the form of marketing alliances. The economic downturn, at the beginning of the decade, led to a paradigm shift among these businesses as they could no longer depend solely on the more mature economies and they started gauging the vast opportunities that a country offered. As travelled more frequently around the world, they experienced international hotel brands first-hand, as a result of which these brands enjoyed greater recognition and acceptance in their country.

Key Game Changers:

  • Entry of most major international brands
  • Changing perception of Indian markets as a lucrative opportunity among international brands
  • Growth of the Indian middle class offering a large consumer base of more than 1 billion people
  • Educated and well exposed Indian audiences, likely to accept global brands wholeheartedly
  • Expected emergence of branded budget and economy hotels

The MICE Business Opportunity In 2000, we had only 2. 6 million international visitations. India played host to 5. 13 million arrivals in 2009, slightly down from 5. 7 in 2008, owing primarily to the contraction in the global economy. When compared to some of the other Asian countries this is still a sad story, but one with immense potential and a tremendous growth opportunity. While the state and central governments focus on 'Incredible India' to bring in tourists, we believe an equal interest needs to be adopted by them to attract and grow the MICE (Meetings, Incentive, Conventions and Exhibitions) segment as it has the potential to change the face of several upcoming Indian cities.

The overall international visitations are likely to grow many folds due to MICE as it allows for the sale of several hundreds or even several thousands of room nights as opposed to the transient travelers who utilize only a few room nights at a time. Additionally, most delegates often travel before and after the event, thus adding to the overall growth of the hospitality industry. Key Game Changers:

  • Growth of science and technology related industries like biotechnology and pharmaceuticals that then host large conferences
  • Growth of the manufacturing sector Increased interest in India as a travel-worthy destination
  • Successful and replicable model in HICC
  • Expected emergence of dedicated convention centers in more cities

Hospitality Marketing Trends

Key Game Changers:

  • Broadening of the playing field with entry of many domestic and international hotel chains
  • Well educated, travelled and experienced customer base
  • Evolution of the brand from a one-way communication stream to a two-way one that accommodates customer needs and experiences
  • Consistent delivery of brand promises and customer experiences
  • Marketing equations changing in favor of the customer with online channels like Web 2. and social networking

Hotel Development

Costs Key Game Changers:

  • Likely rationalization of land costs, due to the recent economic conditions
  • Increased import of material from global sources, as long as quality goods are available
  • Expected rationalization of costs, with government intervention in relaxing the license process
  • Expected rationalization of per key development costs, with entry of brands across all positioning

The Debt, Equity and Valuation Paradigms

Key Game Changers:

  • Expected rise in valuations and sale / purchase of hospitality assets
  • Strong likelihood of infrastructure status for hospitality
  • Increased possibility of securing debt at reasonable rates and for extended periods
  • Growth of private equity investments and hospitality funds
  • Expected rationalization of asking price of hotel assets

Food & Beverage (F) Concepts

Until recently, five-star hotel restaurants were considered the epitome of fine dining experiences in the countries; however, the rapid growth in standalone restaurants is seriously challenging the former for top honors. With a well travelled upwardly mobile consumer, new and trendy food concepts are a rage. A few interesting trends in restaurant design include kitchens moving into restaurants, gigantic wine display walls, bar areas as a focal point, private dining areas and the heightened use of colors and lighting. Key Game Changers:

  • Rapid growth of standalone restaurants
  • Well-travelled customer open to fine dining experiences
  • Entry of restaurant-focused funds
  • Focus on Interior design, a priority for restaurants

Manpower - The Human Element

Human Resource Managers were gearing up to recruit large numbers of manpower for the ambitious expansion plans that hotel companies had envisioned increasing the economy. Additionally, managers were also beginning to experience the occurrence of attrition, an event that had been relatively low in frequency in the past. As the economy of a country grows, more investors want to come and bring their chains of hotels. This created a spate of high-salaried job profiles whose primary function was identical to those of the employees within the hospitality industry.

Key Game Changers:

  • Continued good-quality talent crunch
  • Increasing growth opportunities for the global Indian to relocate to India
  • Continued hiring from and attrition to related service sectors
  • Expected offerings of Employee Stock Options and Competitive Healthcare plans by more hotel chains
  • Innovative solutions to the continued challenge of attracting and retaining trained employees

Technology & Hospitality

Key Game Changers:

  • Continued significant contribution of third party travel websites to hotel reservations
  • Increasing role of Brand. om sites in the overall sales and marketing strategy of all hotel brands
  • Increasing reliance on search engine optimization, web advertising and e-marketing

In the past when guest would like to visit a certain country they would go to the travelling agent who would do all the booking for them. The customer would just have to choose a package and go for the trip. Not knowing the alternatives or other options, this might be much cheaper. Today customers are better informed about;

  • Price and cost
  • Quality
  • Options/features/alternatives

Customers are also taking control of purchase process; they are directly ordering/booking and also ignoring middlemen (agents and brokers). Thanks to the internet customers can plan their whole trip by themselves; this gives them a chance to choose their preference. Completing everything all that is to do is to check inn. By doing this the guest issues and complaints becomes minimal. Challenges of managers Highly competitive, and in some sectors, growing at a phenomenal pace, it is critical to source and select the best people

Shortage of skilled employees: One of the greatest challenges plaguing the hospitality industry is the unavailability of quality workforce in different skill levels. The hospitality industry has failed to retain good professionals. Retaining quality workforce: Retention of the workforce through training and development in the hotel industry is a problem and attrition levels are too high. One of the reasons for this is unattractive wage packages. Though there is boom in the service sector, most of the hotel management graduates are joining other sectors like retail and aviation. . Shortage of rooms: The hotel industry is facing heavy shortage of rooms. It is estimated that the current requirement is of 15,000 rooms. Though the new investment plan would add 53,000 rooms by 2011, the shortage will still persist. Intense competition and image: The industry is witnessing heightened competition with the arrival of new players, new products and new systems. The competition from neighboring countries and negative perceptions about tourism product constrains the growth of tourism.

Customer expectations: expectations of customers are rising. The companies have to focus on customer loyalty and repeat purchases. Manual back-end: Though most reputed chains have IT enabled systems for property management, reservations, etc. , almost all the data which actually make the company work are filled in manual log books or are simply not tracked. Human resource development: Some of the services required in the tourism and hotel industries are highly personalized, and no amount of automation can substitute for personal service providers.

India is focusing more on white collar jobs than blue collar jobs. The shortage of blue collar employees will pose various threats to the industry.

GUEST ISSUES WITHIN THE HOTEL

Dirty Hotel There is nothing worse than a dirty unmaintained hotel. This annoys the guest because he has paid for clean rooms. This also gives the hotel a bad name. No booking on arrival Unhelpful staff Next to a lift shaft Noisy room Overcharged Poor room service Overpriced Phone charges

Updated: Apr 13, 2021
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Business in Contemporary Hospitality Industry. (2020, Jun 01). Retrieved from https://studymoose.com/business-in-contemporary-hospitality-industry-essay

Business in Contemporary Hospitality Industry essay
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