Hospitality industry Essay
“Oxford Dictionary defines hospitality as “receiving and hosting customers, visitors and strangers with cordiality and good reputation.” Receptors hospitality services perceive this service sector accompanied by food and friendly service good drink and familiar atmosphere. On the other hand, those who provide these services sometimes have the impression that, despite their efforts, customers can sometimes be picky and ungrateful. Regardless of the position they occupy, it is clear that the scope of activities influence people life, growing up over time. International there is a constant development and continuous improvement of hospitality industries.
To welcome those who travel the world, literally and figuratively extend our hospitality and it is taking up with their requirements. For many people, facade, appearance or location determines the first impression that remains and is the most important. The hospitality industry, more than any other, is facing strong to the people. What create that lasting impression customers is effective, efficiency and hospitality of the people who by attitude and their kindness, hospitality is people oriented.
But starting from the original meaning of the concept of hospitality, the hospitality industry can be defined with respect broad a range of commercial accommodation activities and / or food service for people who are far from home does not matter if is for longer or shorter time. In other words, the hospitality industry are not only great hotels and restaurants, but also a wide range of commercial activities such as guest houses, snack bars and fast-food establishments. The essence of hospitality is to ensure food, entertainment and accommodation for those who are away from home.
The foundation of this work were made in Europe in the Middle Ages, the monasteries functioned as a “guest houses” for pilgrims. Subsequently, the work was extended by establishing inns for travelers, located along the main thoroughfares. Development occurs inns and hotels related an strict development of travel and holidays. The evolution of transport technologies allowed mass range of consumer leisure or business, creating an urgent need of accommodation and catering for people in away from home. Is generally accepted that hospitality, as an attribute of good manners, represents an primary objective of tourism.
Regarded as a true art, the art of hospitality is intended to structure the customer for the service unit in such way that consumer products and services feel really wanted is treated as a guest. In addition, more than practice it occasionally grown into a true profession. Hospitality as a profession can be defined therefore as “the process of providing psychological and physiological comfort and safety of the client, while the consumption of products required on the premises benefit. “In this context, this attribute can accept industrial-scale development? Seen in terms of scale and investment characteristics and the fact that this sector of economic life is one work intensive, dedicated to the hospitality industry is similar industries.
In the specialty literature doubts persist in using this terminology, especially in relation to the scope of then hospitality industry. Thus, a series of authors consider as part of this field only food and accommodation services, perhaps because those benefits are offered under the same premises works like industrial units, other authors, however, consider it appropriate a broader approach, including leisure services and even the marketing of products. (David P. Baron Business and its environment, fourth edition)
In terms of ownership, tour operators are found in both the private and public sector Private Sector. Increasing the number of transactions and mergers within the industry came amid vertical or horizontal integration. Horizontal integration involves expanding within an industry sector, for example through the development of hotel chains or network by opening new routes. Companies grouped in this formula is in an integrated chain, controlled by a unique decision. They offer a homogeneous product sold under the same brand, using the techniques work together. Horizontal integration means not only achieve these general goals, but also contribute to better accommodate certain geographical dimensions of tourism.
Purchase of tourism enterprises in the coastal and mountainous areas, for example, may allow the transfer of staff and a seasonal effective use throughout the year human and material resources. Vertical integration within an organization bringing together various industry sectors, for example, when a company buys hotel or tour operator travel agency opened retailers. Integration can occur from within by developing a new product or activities of the company’s internal resources or external acquisition or takeover by other companies.
As with other industries, the expansion through integration of technical and financial benefit. Increase the size of a firm enables him to take full advantage of computerization, a very important element in terms of travel bookings or may mean developing scientific research that would provide a competitive edge. The public sector is required at different levels, to pursue the public interest and provide goods and services whose cost cannot be covered by the private sector. The public sector is involved in tourism, directly or indirectly, for different reasons: economic;
social and cultural;
Types of ownership in the industry of hospitality are the followings: sole-trader, partnership, private or public companies (limited liabilities), franchise. Sole –trader- a form of business in which the owner has the unlimited liability , Partnership – can be two or more people who share skills and workload, Company – it has to be registered before to start the business, the owners are its shareholders who puts funds in the company by buying share . Franchise – the franchisor is selling the right to operate under its company license to the franchiser.
The diversity of the Hospitality industry consist in its different types of products and services it is offering such as different food and beverage products (e.g diversity of cuisine, vegetarian meals, nutrient level of the dishes, halal meat, etc), different types of accommodation(e.g. hotels, guests houses, campus accommodation, villas, apartments, cottages), leisure services, conferences, meetings and banqueting’s. (Dr. Sam handout)
Systemic analysis reveals multiple functions and businesses increasingly important that they have the organizational structure as the main organizational subsystem. If hospitality organizations known two dimensions of organizational structure: • horizontal dimension,
• vertical dimension.
The horizontal dimension reflects general division of labor in specific activities or components. Working in horizontal organizational structure can be grouped into: functional structures and autonomous units, drives hybrid matrix units. Structure functional groups similar positions to produce and sell a service. Functional structures typical small tourism enterprises are simple and operate in a simple and stable also. Structure of a small restaurant is shown in figure below
Structure-based autonomous units grouped under a single manager, whose positions work occupiers unlike running, but focuses on: distinct service or group of services; a customer or customer group, geographic area. Organizing such autonomous units is adopted by large enterprises, transnational, operating in an unstable environment and heterogeneous. Example: Hilton International.
Structure incorporates hybrid autonomous units and functional departments centralized and located at headquarters. A hybrid organizational structure is typical for a large company that faces an uncertain external environment and heterogeneous. A strength of this type of structure is that it takes advantage of concentration and coordination of autonomous units and functional departments are centrally such as research department – development
Matrix organizational Westfield area structure is achieved by using simultaneous mixing functional structure or structure-based autonomous units. A new feature of this type of structure is that some workers should report more people and not a single manager. Matrix organizational structure is designed to determine collaboration between product managers and functional managers.
CEO Hotel A
CEO Hotel B
CEO Hotel C
Matrix cells numbered in the diagram above represents workers or teams of workers from the three hotels. Of note is that the hotel manager had to work with three functional managers and each functional manager must cooperate with each of the three managers of hotels. Conditions requiring matrix organization are: 1. Strong pressure for dual focus on technology and product; 2. Pressure related to the amount of data and its processing capacity; 3. Pressure on the general resources of the enterprise.
After their content, the relationships within an organization are: Relationships determines the effective exercise of authority. They are divided into: Hierarchical relationships ensure unity of action, giving the enterprise, from this point of view, the appearance of a pyramid. The relation established between functional and operational departments, hierarchically subordinated them.
Staff relations are independent of the first two categories are established as a result of the delegation by senior management, usually on the top hierarchical organization of the task to solve their behalf problems affecting multiple compartments. Cooperation relations established between stations on the same hierarchical level, but belonging to different compartments. Control relationships arising between specialized departments control and other departments of the company. Spontaneous relations are a consequence of the existence of the informal organization structure. (Teare R. , Adams D., Messenger S. CASSELL Managing Projects in Hospitality Organizations 1992)
The national trade association for hotel, restaurants and catering sector is represented by the British Hospitality Association (BHA). Almost every public hotel group or independent hotels, restaurants, pubs food services, motorway services and many hospitality associations are members of BHA, who promotes the interests of the hole hospitality sector to the EU commission, government, ministers MPs, MEPs, MSPs, and media.
Exist 16 additional committee working with the sector and its specific issues such as Management of food and service Forum, Local Hospitality Association, National Committee of Restaurants Association, Club Panel, Committee of Area Operations Motorway Services. It is offering support and development for more than 40,000 establishments and over 500,000 employee were trained in order to improve their skills and get qualifications in the hospitality sector.
The hospitality sector in UK boost its profitability with a series of events like Olympic Games 2012 and will be delivering world class service to the Ryder Cup and Commonwealth Games in 2014 and the Rugby World Cup in 2015. (www.bha-online.org.uk)
People 1st is delivering a World Host customer service training (e.g. the successful event 2010 Vancouver Winter Olympics). Modern and energetic offering a comprehensive training the program can be found on DVD and CD scenario. People 1st is offering training and development for a series of industry but regarding the hospitality sector its focus is on the success key of the business, quality front-line “customer service”. They offer support from the new entry peoples in the industry to the experience staff in order to increase their chances to promote to the top positions.
People 1st created the successful lead GIF (growth and innovation funds) for the hospitality in UK who brings together the industry bodies, individuals or businesses in order to promote training, innovation and career in the industry and also economic growth. It advice the employers how to use the employees skills and gives them a high quality training program. It support also the government ministers, associations and multinational business. (www.people1st.co.uk)
HOSPA is a non-profit organization with the aim to help and support education, it support the careers development in management, finance, IT, marketing, accountancy and is keeping up to date with the industry new trends. Its monthly magazine focus on its members reflecting the new trends, offering topics to the professional resources.
BIIAB is the owned BII organizations who offers qualifications to the license retail sector available across UK. “Members should be clear that we represent them and their views in influencing Government policy and importantly other key stakeholders in the industry. It’s important that BII looks, to the next generation of members and establishes a credible route to market for young people who aspire to work in this great industry”. Tim sees the role of BII as raising the reputation of the industry as a valued career, said Tim Hulme ABII, Chief Executive. (http://biiab.bii.org/biiab-usefulinformation/whos-who-in-biiab)
City and Guilds of London has been the main provider of qualifications for those woking in food preparation and cooking, food and beverage services, front of the house and accommodation services. On average its awards between 50,000 – 60,000 certificates a year in the sector.
It is well documented that the hospitality industry is an important part of the UK economy. Is an estimate that over 500,000 people are employed in the industry. As the industry grows not only need more staff, are required a variety of skills for different occupations, who needs to expand and meet the customer expectations. E.g. the hotel managers are no longer seen as “good hosts” . they need to be good team leaders with strong technical and financial skills, capable to assume a wide variety of responsibilities from training to the development of customers and staff relations. They need to have as well a multi-cultural approach to business operations and the ability to cope with stressful situations.
It is estimate that the number of young people will increase so training and development is crucial in order to support the acknowledgement process for unskilled and semiskilled people employed in the industry and also for volunteers, seasonal workers or part time workers. For the new entry in order to start a career in hospitality the minimum requirement are a good command of English, good communication skills, positive attitude, friendly approach, customer oriented and hard working.
An increased attention need to be given to the methods of advertising, selection, recruiting, induction and training specially for the staff who comes from outside UK due to the establishment of European single market, and finding solutions to the problems of a decreasing supply of young people coming in the industry and the effort directed towards reducing the high level of labor turnover experienced by the sector.
If for new entry staff are not any specific academic requirements just the willing to work hard and a positive attitude, for public facing role employers prefer candidates who have previous experience even certifications and qualifications in a customer service environment and show good skills and the appreciation of service quality.
The industry offer possibility to work in a full time or part time basis, fix program or shifts, employing many woman’s and young people and allow them to move throw the certain areas of the industry. (Managing Projects in Hospitality Organization, Treare Richard and Co., CASSELL) Core occupations
The sector employs both a large number of core occupations (specific to the sector) and additional occupations (found in most sectors). The following provides employment numbers for the sector’s core occupations:
• Kitchen and catering assistants (402,200)
• Chefs and cooks (273,200)
• Waiting staff (235,200)
• Bar staff (196,100)
• Restaurant and catering managers (158,200)
• Housekeepers and related occupations (59,800)
• Hotel and accommodation managers (58,400)
• Travel agents (47,600)
• Publicans and managers of licensed premises (43,500)
• Leisure and theme park attendants (24,000)
• Conference and exhibition managers (22,400)
• Travel and tour guides (16,600)
• Hotel porters (12,100)
• Travel agency managers (8,500
City and Guilds London Institute offers qualifications for front of the house services, food and beverage operations, chef’s and food preparation, accommodation. The Business and Technician Council (BTEC) is another key organization which provides awards for all level of competence. The number of individual obtaining qualifications in areas of hotels, catering, travel, tourism and recreation is approximately 9,000/year. Hotel and Catering Training Company (HCTC) and the Hotel, Catering and Institutional Management Association (HCIMA) are others institutes who offer qualifications for the industry staff. Managers in the hospitality industry are educated and trained through a wide variety of routes.
The awarding bodies involved at these level include BTEC, the Council of National Academic Awards (CNAA), the HCIMA and the university sector. Separate arrangements exist in Scotland in the form of the Scottish Vocational Education Council (SCOTVEC). Exist two significant reports published who concerned mainly on management education.
The first analyzed the management education in USA, Germany, France, Japan and UK. The founded argued that management group in the overseas are more likely to have been educated to a higher level and are more likely to have benefited from formal and systematic policies for continuing education and development than in the UK. The report recommended that leading organizations should act as role models of good practice and that individuals should secure higher level of education.
The second report provided a thorough appraisal of management in the UK. Its findings showed that although there was general willingness opportunities to consider new of approaches, Britain’s management development opportunities of their competitors. it was recognized that management education could greatly improve the effectiveness of managers on average a British manager received only few days formal training per year. NVQ (National Vocational Qualifications) have been designed to offer qualifications in the industry from entry levels to the top management positions, so everyone can become better and improve skills and knowledge by getting NVQ accredited.
(Managing Projects in Hospitality Organization, Treare Richard and Co.,
The political environment
The political environment is important for tourism companies, because there are laws, rules and tactics. Therefore, it is important to establish the place of political power in tourism and how political power to influence the future and the effects of these tactics. It is also important to identify the level at which an organization operates in a political tour. For example, a Belgian tour operator will face a political environment of local government, national government and EU legislation. Additionally, you will have to face political environments in the countries whose destinations are included in bid. Economic Environment.
Tourism service providers will find that international economic environment affect the demand for their services and financing costs of such services. Examples of this are given by hotel chains like Best Western (U.S.) and Intercontinental (Japan), carriers, and Eurotunnel (UK / France) and Korean Air (South Korea) and holders of tourist attractions like Disneyland (USA, France). Socio-cultural
Facto influencing the socio-cultural tourism organizations are related to the size and population, social class, attitudes and values. Demographics deals with the study population and the population is important for tourism organizations for two reasons: First, the population is a key factor influencing demand for tourism organizations. Secondly, labor organizations supporting tourism is derived from the population. For example, a country with large population represents a potential market for tourism services and one in which economies of scale can be achieved.
Technological environment- collecting technology, dissembling technology, shorting reprocessing and use technology is a technological environment provides tourism organizations both opportunities and threats. Opportunities resulting from technological development can be found in cheaper supplies in improvement of goods and services or to better marketing.
Legal environment – such as vast protocols, rules and regulations, standards, contractual issues, planning system, facilities permitting, product stewardship legislation, landfill restrictions (liquids, tires, pretreatments),.
Environmental factors – peak oil (oil reserves), virgin resource and landfill availability, exploitation impact (damages to the ecosystem), climate changes (future temperature, rise and impact), weather change, carbon balance recycle vs. virgin material. (Davin P. Baron, Business and its Environments, fourth edition p428)
It has long been committed and only hotels under construction are increasingly using all kinds of green technologies. In addition, these environmental initiatives applies not only to expensive hotels in the world, but also in CIS countries. One of the most developed areas – reducing the cost of electricity, more hotels now use LED bulbs, which although more expensive, but consumes 3-4 times less electricity. Life in LED too. To consume less electricity utility to create a mini panel. In regions with good wind level, many hotels are increasingly equipped with turbines.
Rarely used other alternative energy sources. More hotels in Astrakhan use generators on biodiesel. In the book “Gaia Napa Valley” heat lighting technologies used, increasing use of cars with alternative engines. So, increasingly, to go to a hotel used by electric vehicles and taxis and freight cars with hybrid engines. For example, California, Ambrose Hotel offers clients limousines on hybrid engine.
Household chemicals – is an area that is too stupid to be updated. Being introduced more and more secure means of washing. A number of hotels in bathrooms are courteous customer requests to throw in a basket all the towels that need washing, so do not wash towels mountain again. As the scale of hospitality enormous amount of harmful substances into the atmosphere when washing is absolutely clean linen and towels. Attention is paid to environment friendly building materials to use when building new hotels and repair old ones.
“Green” directions are important, for example, it is wise to use water to regulate the heating-cooling processes inside, reducing plastic packaging. For example, already referred to American Hotel Gaia Napa Valley established the so-called “gray” water (runoff from showers and sinks), which is passed through a small filter is used to fill the pond and watering of vegetation great site.
Environmental initiatives also bring revenue by improving the image of the hotel. Hotels online websites on the internet and on site to form a section of “environment – demanding” comments that describe achievement, environment and individual health care. The business are bound to become greener as a desire to reduce their costs, and in an effort to attract more visitors – because people are more aware of environmental issues. (http://ecology.md/md/section.php?)
CRS (Corporate Social Responsibilities)
The social responsibility perspective focus on role of business identified by concerns that extend beyond economic efficiency. Those role may steam from societal needs to otherwise adequately addressed or from the consequences or market imperfections. They may also stem from concerns that government is either unable or unwilling to address. E.g. some companies have voluntarily institute programs to reduce the carbon dioxide emissions in response to global climate change. From this perspective social responsibilities arise from the needs and the legitimate concern of individuals, and business must assets those needs and concerns to determine the extent of its responsibilities.
Business leader advocate corporate social responsibilities for a variety of reasons. Some are argue that there are some objectives that can be achieved only through direct corporate actions. Business for example may be more efficient than the government or educational institutions at training workers for certain jobs. Other business leaders call restraint of the pursuit of profits and for self-regulation in the hope that will forestall additional government intervention and regulation.
These calls are viewed by some as a necessary response to pressures arising from the nonmarket environment. Some calls for corporate social responsibility are directed to the public with the intent of increasing public support for businesses. Some who call for corporate social responsibility believes that unless the business uses the rhetoric of social responsibility and more intervention by the government will result. That intervention could not only harm business interest but would also impair efficiency, competitiveness and the well – being of society. (Davin P. Baron, Business and its Environments, fourth edition p647)
The Yield Management is a concept, an approach to maximize profit based on careful tracking of the evolution of prices and tariffs and set, taking into account actual sales and availability of the company. By applying Y.M. aims at determining the highest tariff to be charged within cost and available capacities and also ensure that all those customers wishing to benefit from a particular product or service and willing to pay the fee to be able to do. Basically, Y.M. provides:
Maximizing the average profit for a product available based on customer expectations on price and setting its highest value that customers are willing to pay; Seasonality of demand reduction by transferring its excess of other peak times
Y.M. is based on the analysis and interpretation of the demand curve, concept representing an expression of the relationship between price and demand. Customers are divided into different segments according to the wishes and their willingness to pay, yielding several price levels. As an expression of applying the Y.M. Tourist practice, Scott Hornick identified five functional components:
Structuring pricing policy;
Willingness and ability to lead;
Market Segmentation entails identifying distinct groups of tourists with different behaviors that are important for travel company on the activity, the price or decisions. Pricing policy considering the possibility of offering a different price categories for each customer segment, according to market changes and requirements. Demand forecast is made taking into account previous sales, size and structure of customer segments and the prices that they are willing to accept.
Willingness to lead, as well as negotiating appointments, refers to the attempt to quantify the characteristics of the application. Company must take into account any changes that occur, and the fact that some customers are willing to negotiate prices. (Marketing Hospitality, third edition, 2002, Cathy H.C. HSU, Tom Powers)
Following the emergence of new tools are needed for globalization manage processes, multi-ethnicity and culture and support employees and businesses to meet all stakeholders. The planning and management of destinations and profile companies must take account a number of changes in society and the world economy. According to economic theory, globalization is seen as a process evolve gradually. The models can be used to illustrate the scope and involvement in international transactions.
Anne-Mette Hjalager (2007, pp. 437-457) constructs a model descriptive four stages of globalization of the tourism industry in order to make understand the complexity of the dynamic interactions take place outside of borders. The level of analysis is the community interest and their stakeholders: tourism companies, communities, national and local etc. Consequently, globalization is seen as a result of both the singular decisions taken by the companies profiled and policy makers national and local.
The first stage includes national tourism system tests to access new markets. The purpose of “missionaries” tour is to attract customers by firms, destinations or countries where tourism product will be sold or consumed. Force communication emerge beyond the promotional campaigns international markets for consumers, being a strong bond between tourism associations and other collaborating organizations. Communication is possible overcoming barriers in many countries where some tourist organizations are reluctant to changes.
The second stage describes the integration and incorporation of tourism businesses across national borders. Investments beyond their own country is a subject treated extensively in the literature of globalization. In tourism, reproduction and external expansion of successful business concepts recognized most consumers are a powerful force majeure globalization. Transfer of capital and concepts is pregnant in this industry, and the pros and cons of cultural and economic hegemony discussed in a largely predominant when the transfer is done by countries developing. Two methods are developed global integration more first business integration through investments, mergers and acquisitions, and then trade overall concepts through franchises and licenses.
The third stage refers to the spatial fragmentation and relocation production processes. In recent years there was an increasing emphasis on creating profitability through extensive fragmentation and optimize the entire value chain. While a great deal of resources are local only national, international markets affecting the availability of increasingly more composition of the local tourism product and the production process. In this service with a high degree of absorption of work, the supply of human and is immaterial importance. Finally, in the fourth step, it is questionable identity industry and new types of markets and business concepts that will exceeds previous definitions of tourism.
Many organizations and many researchers are involved in trying to define and explain logically tourism traditional economic statistical categories. Although the model suggests a logical progression to the final stage the more complex, in practice, they overlap. (http://store.ectap.ro/articole)
Future trends in the Hospitality Industry
Can be summarized as follows:
More green and eco – lodgings,
Development of meg – hotels (multipurpose facilities with casino, shops, theatre, theme park), More boutique hotels,
Intelligent hotels with advance technology using the guest fingerprint in order to perform all the operations (charge, check – in and out), Increasing
the employee salaries in order to retain the existing staff,
The effect of information – technology shows more than ever that knowledge is power.
Providing an outstanding service, people safety and security, the technology that enhance competitors, globalization, the people demand, development of tourism lodgings, report between quality and quantity and price and value all this are current and future trends which affect the hospitality industry.
Lifestyle and Quality plays an essential role in attracting and retaining the customers reason why service quality force industry organizations to search for competitive advantages, rise above guests expectations, build relationships with each customer, review their policy. In order to achieve a better customer satisfaction and loyalty, attract and retain the guests. The researches in the sector shows that a high rate of customer satisfaction drives to a bigger financial outcome in the industry. (Dr. Sam handout)
Purpose of this study is to provide an overview of the hospitality industry its benefits, the scope and the extension that have had over the years, becoming an essential part of everyday life. Our world is in a constant motion, a world full of changes, opportunities and issues. In the hospitality industry customers are changing, the technology is changing, markets are changing reason why hospitality organizations are trying to become more customer– focused, to develop and improve their performance, encouraging innovation.
The new trend and existing trends derives the sector to success by offering solutions, being a basic element of prosperity helping to increase the performance and preparing the industry to face challenges. The industry has a big impact on economic growth and is creating employment and offers support for people to develop their skills training them throw the hospitality professionals bodies, aimed and promoting them to the top positions.
One big issue of the industry regarding the employees is the salary. The organizations should take is count the long working hours, stress, the factors affecting the environment of working place, review their health and safety rules and protection in working place, motivating them by increasing the salaries and paid holidays, keep them happy in order to have happy customers and increase their revenue. The benefits of working in the sector include learning new skills, be trained by professionals, learn to be professional, be open to challenges, improve your behaviors and learn how to make money anywhere in the world. Is a quick growing sector offers flexibility and you can have fun while you are getting paid.
Dr. SAM handout
Marketing Hospitality, third edition, 2002, Cathy H.C. HSU, Tom Powers ISBN +-471-34885-6 Teare R. , Adams D., Messenger S. CASSELL Managing Projects in Hospitality Organizations 1992, ISBN 0-304-32505-8 David P. Baron, Business and its Environments, fourth edition p647, ISBN 0-13-047064-3