Hospitality Industry

Hospitality Industry

Overview Hospitality is about serving the guests to provide them with “feel-good-effect”. “Athithi devo bhavha” (Guest is God) has been one of central tenets of Indian culture since times immemorial. In India, the guest is treated with utmost warmth and respect and is provided the best services. Today hospitality sector is one of the fastest growing sectors in India. It is expected to grow at the rate of 8% between 2007 and 2016.

Many international hotels including Sheraton, Hyatt, Radisson, Meridien, Four Seasons Regent, and Marriott International are already established in the Indian markets and are still expandingNowadays the travel and tourism industry is also included in hospitality sector. The boom in travel and tourism has led to the further development of hospitality industry. | * Classification The Indian hospitality sector can be broadly classified into two broad categories: 1. Hotel industry 2. Travel and Tourism industry * Sector outlook

Hotel industry depends largely upon the foreign tourist arrivals further classified into business travelers (around 65% of the total foreign tourists) and leisure travelers. The following figures show that business as well as the leisure travelers (both domestic and international) formed major clientele for hotels in 2004 Over the last two years, the hotel industry has seen higher growth rates due to greater number of tourist arrivals, higher occupancy rate (being around 75% in FY’06) and significant increase in average room rate (ARR).

The major factors contributing to this growth include stable economic and political conditions, booming service industry, FDI inflow, infrastructure development, emphasis on tourism by the central as well as state governments and tax rationalization initiatives to bring down the tax rates in line with the international levels. Future The number of tourists visiting India is estimated to touch the figure of 4. 4 million. With this huge figure, India is fast becoming the hottest tourist destination in the region. The visitors include business travelers, leisure travelers and persons of Indian origin with foreign passports.

Growth is expected to continue over the next few years. It is being predicted that India may achieve an average growth of 12% per annum in tourism for many years to come. Apart from international tourists, the domestic tourist market, including business and leisure travelers, is also flourishing. This market is estimated at around 300 millions tourists per year. The industry also expects a boom in spiritual and medical tourism in the domestic sector at a growth rate of 10% to 15% over the next few years. Growth in tourism will definitely lead to a boom in hotels and restaurants.

Though there is a shortage of rooms at present, it is going to be over soon enough, as top international players are heading towards India to establish themselves here. A steady growth of about 10% in new hotel projects is expected for the next few years. * Trends in hospitality sector Trends that will shape the future of hospitality sector are: 1. Low Cost Carriers 2. Budget Hotels 3. Service Apartments 4. Technology 5. Loyalty Travel 1. Low cost carriers: Travelers in general are more price sensitive to airfare than they are to hotel room rates.

Often a low airfare will stimulate demand for travel even if hotel prices are increasing. LCCs are a good option for business travelers, as they have advantages like low costs, more options and connectivity. 2. Budget hotels: More than 50 per cent of occupancy of a majority of hotels comes from the business travel segment. The average room rate (ARR) realized from business travelers is normally higher than from leisure travelers. Heightened demand and the healthy occupancy rates have resulted in an increase in the number of budget hotels.

Some of the new players entering into this category of hotels include Hometel, Kamfotel, Courtyard by Marriott, Country Inns ; Suites, Ibis and Fairfield Inn. 3. Service apartments: The concept of service apartments, though a recent phenomenon in India, is an established global concept. Villas in Spain, flats in the UK and apartment complexes in the US have all created a viable market for those who want more than just a room in a hotel. Service apartments are the latest trend in accommodation, offering the comfort and convenience of a home without the hassles of having to maintain or look after it.

Ideally suited for medium-to-long staying guests, service apartments are a natural choice for corporate employees or expatriates relocating to a particular city, non-resident Indians visiting the country for long spells and foreigners visiting the city for long durations. 4. Technology: Travel and technology have become inseparable. Technology is making its own advances with high-tech video conferencing facilities, web cameras and virtual reality mode of conferencing. On-line bookings, e-ticketing, Wi-Fi Internet connectivity, easy access to information, etc. are just a few areas where technology has completely changed the the way we travel. . Loyalty travel:Today, airline-credit card company tie-ups have brought a whole range of benefits to the travelers. These include insurance cover, upgrades, free tickets, access to executive lounges, and a host of other goodies. The top players in hospitality sector include the following: 1. ITC Hotels 2. Indian Hotels Company Ltd. (The Taj Hotels Resorts ; Palaces) 3. Oberoi Hotels (East India Hotels) 4. Hotel Leela Venture 5. Asian Hotels Ltd. Hotel corporation of India 6. ITDC Hotels Some of the main features of the Indian hotel industry include the following: a.

The industry is more dependent on metropolitan cities as they account for 75% to 80% of the revenues, with Delhi and Mumbai being on top. 7. The average room rate (ARR) and occupancy rate (OC) are the two most critical factors that determine profitability. ARR depends on location, brand image, star rating, quality of facilities and services offered. The occupancy rate depends on other b. seasonal factors. c. India is an ideal destination for tourists. Approximately 4. 4 million tourists visit India every year. Thus the growth prospects are very high. d. In the hotel sector, a number of multinationals have strengthened their presence.

Players like Four Seasons are also likely to enter the Indian market in the near future. Moreover, Indian hotel chains are also expanding internationally. A combination of all these factors could result in a strong emergence of budget hotels, which could potentially lower the cost of travel and related costs. The industry can be classified into four segments: I. 5 Star and 5 Star Deluxe. These are mainly situated in the business districts of metro cities and cater to business travelers and foreign tourists. These are considered to be very expensive. These account for about 30% of the industry. II. Heritage Hotels.

These are characterized by less capital expenditure and greater affordability and include running hotels in palaces, castles, forts, hunting lodges, etc. III. Budget Hotels: Budget hotels cater mainly to domestic travelers who favor reasonably priced accommodations with limited luxury. These are characterized by special seasonal offers and good services. IV. Unclassified: These are low-priced motels spread throughout the country. A low-pricing policy is their only selling point. This segment accounts for about 19 % of the industry. * SWOT Analysis * STRENGTHS 1. Natural and cultural diversity : India has a rich cultural heritage.

The “unity in diversity” tag attracts most tourists. The coastlines, sunny beaches, backwaters of Kerala, snow capped Himalayas and the quiescent lakes are incredible. 2. Demand-supply gap : Indian hotel industry is facing a mismatch between the demand and supply of rooms leading to higher room rates and occupancy levels. With the privilege of hosting Commonwealth Games 2010 there is more demand of rooms in five star hotels. This has led to the rapid expansion of the sector. 3. Government support: The government has realized the importance of tourism and has proposed a budget of Rs. 40 crore for the development of the industry. The priority is being given to the development of the infrastructure and of new tourist destinations and circuits. The Department of Tourism (DOT) has already started the “Incredible India” campaign for the promotion of tourism in India 4. Increase in the market share: India’s share in international tourism and hospitality market is expected to increase over the long-term. New budget and star hotels are being established. Moreover, foreign hospitality players are heading towards Indian markets. * WEAKNESSES 1.

Poor support infrastructure: Though the government is taking necessary steps, many more things need to be done to improve the infrastructure. In 2003, the total expenditure made in this regard was US $150 billion in China compared to US$ 21 billion in India. 2. Slow implementation: The lack of adequate recognition for the tourism industry has been hampering its growth prospects. Whatever steps are being taken by the government are implemented at a slower pace. 3. Susceptible to political events: The internal security scenario and social unrest also hamper the foreign tourist arrival rates. OPPORTUNITIES 1. Rising income: Owing to the rise in income levels, Indians have more spare money to spend, which is expected to enhance leisure tourism. 2. Open sky benefits: With the open sky policy, the travel and tourism industry has seen an increase in business. Increased airline activity has stimulated demand and has helped improve the infrastructure. It has benefited both international and domestic travels. * THREATS 1. Fluctuations in international tourist arrivals: The total dependency on foreign tourists can be risky, as there are wide fluctuations in international tourism.

Domestic tourism needs to be given equal importance and measures should be taken to promote it. 2. Increasing competition: Several international majors like the Four Seasons, Shangri-La and Aman Resorts are entering the Indian markets. Two other groups – the Carlson Group and the Marriott chain – are also looking forward to join this race. This will increase the competition for the existing Indian hotel majors. * Challenges for hospitality sector 1. 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. 2. 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 3. Shortage of rooms: The hotel industry is facing heavy shortage of rooms. It is estimated that the current requirement is of 1,50,000 rooms.

Though the new investment plan would add 53,000 rooms by 2011, the shortage will still persist 4. Intense competition and image of India: 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 Indian tourism product constrains the growth of tourism. The image of India as a country overrun by poverty, political instability, safety concerns and diseases also harms the tourism industry. 5. Customer expectations: As India is emerging as a destination on the global travel map, expectations of customers are rising.

The companies have to focus on customer loyalty and repeat purchases. 6. 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 7. 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

Hospitality Industry

Hospitality Industry

The aim of this essay is to analyse the current structure and stuffing of the hospitality industry, assess recent developments affecting hospitality industry, analyse the current image of the hospitality industry, present justified predictions for potential trends and developments and analyse them. Moreover, I will identify and apply strategies to find appropriate solutions, demonstrating my creative thinking. LO1 The current structure of the hospitality industry 1. 1 The current scale, scope and diversity of the hospitality business

The hospitality industry includes different establishments and services. Hotels, B&B, restaurants, nightclubs, membership clubs, pubs, bars, lounges, coffee shops are part of the hospitality industry. They offer accommodation, leisure, events, service, food and drinks. The leisure is an inalienable part of the hospitality industry. Leisure industry includes: restaurants, hotels, theatres, spas, gyms, venues for concerts, sporting areas etc. Anything that is made to be enjoyed people is leisure. Today to satisfy customer , hotels offer not only accommodation, but also spas, gyms, bars, business venues etc.

There are different forms of ownership for hospitality industry. The basic types of ownership and management are: franchise, privately owned and operated, chains, management contract. I will describe them on an example of hotel ownership. Franchise model Franchising is a special type of licensing, when company-owner (franchisor) of a famous trademark is providing franchise to other company (franchises) to put their trademark on their production. A franchise operation is a financial and business agreement between two parties.

The franchisor have a grant to control production and quality of franchises. The franchisor need to pay fee for a trademark usage. Royalties are based on a percentage of weekly or monthly gross revenue. Sometimes you may be required to make “minimum” royalty payments even if your business is not making any profits or indeed any revenue. Royalties usually range between 2% and 15%. While the hotel will benefit from recognition of the brand name by the consumers, a proven business model and national marketing, the hotel’s owner is dependent on that brand name for its business.

If the brand loses popularity with consumers, the owner’s business suffers as well. Independently owned Independent owners have complete control over every aspect of their business – from selecting the brand to how to comply with government regulations. An independent business owner has the opportunity to launch an innovative product, which is protected by copyright or patent or trademark and this can aid the independent business owner to rule the market. Despite their operating freedom and small scale, hey confront more difficult financial challenges than chain hotels.

Independently owned hotels can be privately operated, leased or managed. Privately operated ownership gives the owner the most freedom, but also the biggest risk. The owner is free to make all decisions of stuff, operational structure and growth, but does not have the benefit of a brand behind him. Leased hotels are private s well, but building belongs for someone else. Usually, buildings are long-term leased. If the hotel continues to be private, but the partners with recognizable brand name manage it for a fee it is independently owned managed hotel. Hotel chain Chain properties fall into three main groups: parent-company owned and operated by the brand, franchises licensed by investors and operated by management who contract to use the name and the system of the brand or management contract properties owned by investors and operated under contract of the brand. Hotels at different locations with the same name, which provides the same types of services and standardised quality are chain hotels. Management contract Under the management contract, the owner maintains financial responsibility or the property itself, and the management company is responsible for operating the property, using the owners money. The management company is required to provide the owner with financial reports and notice of any policy changes affecting the hotel. 1. 2 The organizational structure of different hospitality organizations Hotels vary in size and type, therefore hotel organizational structure may be different. Some organizational structures include multiple departments, branches and managers to extend full-service luxury accommodations and amenities.

However, small, family, low-budget hotels may have only manager and few employees. At the top of the hotel pyramid is the hotel’s Chief Executive Officer. Underneath the CEO is the management stuff, headed by the general manager. In addition to processing a high level of technical skill, the general manager must also be decisive, analytical and skilled with computers and people. He must be able to see the picture and how all departments of the hotel fit into one organization.

The general manager, who overseas all hotel operations, may have an assistant manager to help him with his duties and supervision. Underneath the general manager, hotel may have restaurant manager, catering director, food and beverage manager, conference and banqueting manager, reservations manager, front office manager, housekeeping manager, head chef, finance manager, human resource director etc. Underneath the managerial stuff are supervisors and the employees who work in food and beverage services, marketing and sales, housekeeping, reception, room service and maintenance.

Most full-service hotels have six main functional departments. Each of this departments will exist, in one form or another, regardless of the location and type of the hotel. Functional departments: finance department, food and beverage department, human resources department, marketing and sales department, engineering department, rooms, front office and reservation departments. Rooms, front office and reservation departments The rooms department includes reservations, housekeeping and telephone.

In smaller full- service hotels, security, front office and engineering can also be included to rooms service. This department include reservations, quest reception, room assignment, tracking the status of rooms, mail and phone messages, security, housekeeping of quest rooms and public spaces and answering the quests’ questions. To perform all these duties effectively, the rooms department may be divided into a number of specialized subunits. The front office department is one of the most important departments in a hotel, as it often offers the only contact between guests and staff.

A hotel’s front office is where guests are greeted when they arrive, where they are 3 registered and assigned to a room, where they check-out. The front office functions may be divided into five general areas: reception, bell service, concierge, phone service system, uniform stuff (doormen, lift attendants, valet parking etc). The reservation departments takes and tracks the hotel’s future bookings. The housekeeping department is responsible for cleaning guests rooms and public spaces.

Depending of the size of a hotel, the security function may be handled by a fully staffed department on site, contracted to an outside security company, or assigned to designate staff members. In smaller hotels, the security function might become a task of the room department. Patrols the property, monitoring supervision equipment, ensure safety of guests and staff are functions of security department. Food and beverage department The primary function of food and beverage department is to provide food and drink to a hotel’s guests.

Hotels may have lounges, bars, restaurants, room service, banquet halls etc. Head chef or executive chef is at the top of the organisation of the food preparation. Depending on the size of the operational area he may work alone or have several assistants. The executive chef is responsible for all aspects of food production, including menu planning, purchasing, costing, planning work schedules, hiring and training. Underneath the head chef is the chef de cuisine who reports to him runs on daily basis in the kitchen for formal dinning, casual dinning, banquets, catering.

Underneath of them are sous chefs and station chefs. A variety of culinary specialists who are responsible for different aspects of food preparation report to the executive chef. Serving food is headed by food and beverage manager. Food and beverage manager will have the sole responsibility for the day-to-day running of the food and beverage department and ensuring budgetary controls while overseeing pricing and purchasing in all food and beverage areas. Each outlet may have own manager: restaurant manager, bar manager, room service manager, lounge manager, banqueting manager.

Finance department The main duties of finance department are recording financial transactions, preparing and interpreting financial statements, providing the managers of other departments with timely reports of operating results, payroll preparation, account receivable, collecting and reporting most of a hotel’s operational and financial statistics, which provide important data for budget preparation purposes. There are different positions in finance department such as director of finance, payroll, audits, credit manager, operations analyst, clerks.

At the end of the day, after most hotel guests have retired, auditors begin recording charges to guests’ accounts and verifying the revenue for the hotel. A big hotel may have a credit manager, whose function is to grant and check credit. An operations analyst performs analyses to help managers operate the hotel more effectively. Marketing and sales department Sales managers sells rooms, food and beverages to potential clients through advertising, attendance at association meetings and direct contacts.

Sales managers often specialize in corporate accounts, conventions or travel markets. A typical marketing and sales department is composed of four different directions: sales, advertising, public relations and convention services. Under the marketing concept , the firm must find a way to discover unfulfilled customer needs and bring to market products and service that satisfy those needs. 4 Human resources department The human resources department functions are employee recruitment, assessment, benefits administration and training. Although the human esources department recruits, interviews and screens prospective employees, the final hiring decision rests within the department in which the potential employee will be working. Effectiveness of this department depends on its manager’s ability to form effective working relationship with managers of others departments. Nowadays this department help employees to develop and evaluate. Engineering department The engineering department’s responsibilities include preventive maintenance, repair, replacement, modification of furniture and equipment, ensuring uninterrupted provision of utilities.

The hotel might have a large engineering stuff that includes plumbers, carpenters, painters, electricians and other technicians. Small hotels may not have this department at all. 1. 3 The role of hospitality related organizations and professional bodies There are different hospitality related organisations which help to manage the hospitality industry. People 1st is the sector skills council for hospitality, passenger transport, travel and tourism in the UK. People 1st covers 24 industries such as aviation, bus, coach, hotels, restaurants, hospitality services, pubs, bars etc.

People 1st is an employer-led registered charity that aims to transform the skills and professional image of the hospitality, passenger transport, travel and tourism sector. They conduct research with employers and government to raise employer ambition and investment in skills and ensure that public funds are focused on qualifications and training programmes that industry needs. The People 1st research department mission is to analyse the skills and labour market needs in hospitality, leisure, travel and tourism sector.

People 1st vocational learning team works with industry to set national standards, develop foundation degree and determine which qualifications need to be developed to satisfy industry needs . The British Hospitality Association is leading organisation in the hospitality industry, representing hotels, restaurants and food service providers. The BHA aims to raise awareness across government, media and the general public of the importance of hospitality and the role it plays in UK economy. The BHA is working on voluntary roposal for the industry to help attain government targets on reducing obesity and improving the nation’s health. The BHA focus on 5 main areas: health, economy, employment, sustainability, competitiveness. The are advising government to reduce the burden of costly regulations at national and local levels, helping to bridge the gap between education and industry to build a skilled workforce for hospitality. The Institute of Hospitality is managed as an educational charity, and exists to benefit its members in their career and professional development, as well as continuing to improve industry sector standards.

The primary purpose of the Institute of Hospitality is to promote the highest professional standards of management and education in the international hospitality, leisure and tourism industries. British Institute of Innkeepers is the professional body for the licensed retail sector with charitable status and a remit to raise professional standards. They develop relevant qualifications at all levels, promote alcohol retailing for the benefit of the general public, provide trainings and qualifications to raise standards within the sector, hold events and seminars, which help them to provide excellent service to customers. Springboard Charity have been helping young, unemployed and disadvantage people into careers in hospitality, leisure and tourism. They promote the industry as a great place to work and help to attract fresh talent. Springboard want to be leading provider of specialist, careers, education and employment services relating to hospitality industry. All this organizations play important role in hospitality, as they help to find yourself and develop in your career. LO2 Staffing in the hospitality industry 2. 1 The stuffing requirements of different hospitality industries

There are many different types of jobs for hospitality industry. Staff can be divided into three groups: functional specialist, operational stuff and craft. Functional specialist has the education, degree corresponding to hid profession. Operational stuff carry out the day-to-day tasks, have the most contact with the guests, do not have a degree, but have skills. Craft stuff have trained to acquire specific practical skills. They may have trained for several years to achieve the qualification to prove their ability. In every hotel department are managers, supervisors and operational stuff.

Managers usually have a degree of management or are highly skilled (work in the department for several years and grew up from operational stuff to the manager). Managers carry out staff training, make sure hat the business complies with all relevant legislation, make sure supervisors are doing their job, ensure goods are ordered in time, monitor standards. Depending of the department manager may have more responsibilities. The level below a manager is known as a supervisor. Supervisors report to their department manager, who will tell them, what they need to do.

Supervisors deal with customer complains, supervise operational stuff, ensure that customers are satisfied, ensure that work procedures are being followed. Supervisors, managers, head chefs and sous chefs are skilled jobs. This jobs require trainings and often higher education. Operational staff usually do semi-skilled or unskilled work. Jobs are unskilled when persons can learn to do it less than for 30 days (for example dishwasher, banqueting steward). Semi-skilled occupations are more complex than unskilled work, but simpler than skilled jobs. Semi-skilled occupation requires more than 30 days to learn.

Semi-skilled jobs are mostly work with customers such as waitress, bartenders, receptionist, commis chef etc. Requirements and assumptions for staff in hotels, restaurants, pubs, bars: Reception- high communication skills and IT-knowledge, degree and years of experience, as receptionist need answer guests questions, answer for phone calls, make reservations Porters- knowledgably of everything that hotel offer, help with luggage and lead guests Concierges- entry level job, help to book table in the restaurant, find babysitter for children etc. Housekeeping- clean guests rooms and public areas

Room Service- food and beverage delivering to rooms, taking orders Waitress- taking orders, cutting tables, serving food and drinks Food Runner- serves and bring cooked food to the table Bartender- mixing drinks in bars, experience needed 6 Host- takes reservations in restaurants, organize seating, seat customers, distributes menu, communication skills needed Cashier-taking care of the cash and card transactions, Kitchen Porter- dishwasher, no experience needed Kitchen Staff- food cooking and preparing Line Cook- prepare and cook food for service

Front Desk Supervisor- hire, fire and discipline front desk personal, porters, concierges, years of experience needed Housekeeping Supervisor- control cleaners and housekeeping stuff, staff training, years of experience needed Kitchen Manager- make sure that kitchen operations are going smoothly, hiring new kitchen employees, trainings for employees, years of experience needed Bar Manager- oversee all operations in the bar, experience needed Restaurant Manager- focus on guests services, control waitresses, make sure that customers are satisfied, quickly served, degree and years of experience needed Executive Chef- create menu, supervise cooks, order ingredients for meals, degree and years of experience needed Marketing Manager- advertising, degree needed Accounting- paying bills, taxes, salary, degree needed

Assistant Manager-administrative work, preparing a lot of reports, control budget, degree and experience needed General Manager charge all aspects of running the business, control all other managers and supervisors, degree and experience needed All this staff is working in hotels, restaurants, pubs or bars. They are part or full time employed. Sometimes restaurants and hotels have casual worker. They do not have paid holidays, and their shifts depend of how busy restaurant or hotel is. They come to work only when it is needed. Moreover, there are special catering and event agencies, who have different staff for hotels, restaurants, events. If there is not enough staff for busy day in hotel or restaurant, managers can call agency and invite staff from there. 2. The roles, responsibilities and qualifications requirements for hospitality industry The number of employees in an organization will depend of it size. They number of employees can vary from 3 to thousands. Working in hospitality industry also mean team work, as alone cook can not serve lunch for all customers, cleaner can not clean all rooms. Every staff have its own roles. Managers main roles and responsibilities: Guests rooms, restaurants, bars, cloakrooms are clean Operational staff is correctly dressed Staff is fully trained and can provide excellent service Provide security in all areas Goods are ordered Hygiene standards are maintained Reports timely submitted

Discipline is effected Licenses timely submitted Hold regular staff meetings Control own department 7 Set and monitor standards Ensure all procedures are followed Make sure he business complies with all relevant legislations Ensure that staff is paid Set budgets Supervisors main roles and responsibilities: Control day-to-day operations Motivate and lead team Communicate with staff and customers Resolve conflicts Support and develop team Help managers to control department Ensure that staff are dressed appropriately Process customers’ bills Ensure that customers are satisfied Control operative staff Deal with customers complains Organize team work

Craft and operative staff main roles and responsibilities: Clean areas, tables, rooms Serve customers Set tables Take orders Answer guests questions Satisfy customer needs Ensure customers are correctly charged Attend meetings and trainings Come to work at time Be dressed correctly Work effectively in team It is very important that everyone in hospitality industry knows their job role and understands their responsibilities of work. Working in the restaurant you should know everything about food and beverages, table bookings, come to work at time and correctly dressed. Staff in other departments should know everything about their department and provide excellent service as well.

All staff should be punctual, honest, follow instructions, respect customers and other team members, be confident with information that receive from customer. To work as a manager you need to have a degree. Sometimes happen that operational staff advance to supervisor position and after to manager position without degree, but it takes a lot of years. An academic degree is college or university degree. The most common degrees today are Associate’s, Bachelor’s, Mater’s and Doctoral Degrees. Professional certification, trade certification, professional designation, often are called certification or qualification, is a designated earned by a person to assure the qualification to perform the job. Not all certifications are an acknowledgement of education achievement.

A diploma is a certificate by an educational institution, that testifies that the recipient has successfully completed a particular course of study or confers an academic degree. BTEC are work related qualifications, which are build to accommodate needs of employers. They provide a practical, real-world approach to learning without 8 sacrificing any of the essential subject theory. They can be taken alongside or in place of A levels. BTECs are known more than in 30 countries and are recognized by schools, colleges, universities, employers and professional bodies. BTECs have different levels from Entry level to professional qualifications at Level 7.

National Vocational Qualifications are work based awards in UK, Wales and Northern Ireland. NVQs are assessed on practical assignments and a portfolio of evidence. Assessor will observe you and question you about the real work you carry out in he workplace. NVQ can be taken only if you are working. There are 5 levels of NVQ ranging from Level 1, which focuses on basic work activities, to Level 5 for senior management. Moreover, there are 1 day courses for food safety and hygiene. They are sanctioned by exam. Nowadays you can have this courses online s well. Level 1 Award in Food Safety for catering provides an introductory awareness food safety.

Level 2 provides a firm foundation in food safety Level 3 is providing a through understanding of food safety procedures. Level 4 is providing an in-depth understanding of food safety. There are one day courses for first-aid, which are often held in hospitality organizations by managers. National Award for Personal License Holders is one day course for anyone who authorise the sale of alcohol to the public. Anyone who authorises the sale of alcohol to the public is required to have suitable qualification. There are different organizations, which provide different courses and qualifications. If you are interested in your work, you can always develop by attending different courses and trainings. LO3 Recent developments affecting hospitality 3. Operational, managerial and legislative issues resulting from recent developments affecting the hospitality industry Standard Operating Procedures is written document detailing all relevant steps and activities of a process or procedure. SOP provides employees with a reference to common business practices, activities or tasks. SOP provide a reflection of company’s mission, values and operating principles. It establish minimum parameters for operating practices. Standard operating procedures educate hotel staff on the best way to deal with a given situation , from fielding guests complaints to handing fire drills. Hotel should use different standard operating procedures.

Tool procedures may cover tasks that hotel staff is likely to run every day, as well as rare circumstances. General Food Low laid down the fundamental principles for food safety in Europe. On it are based a lot of hygiene rules. In the UK The Food Safety Agency is responsible for supervising the food safety. The UK Food Safety Agency had published recommendations as Hazard Analysis and Critical Control Points. Today customers except better service, more attention to the details, more personalized service. BSI is the UK’s National Standards Body, which is responsible for producing and publishing British Standards for service, safety, security, accessibility, sustainability, hygiene. There are around 27000 published standards.

BSI provides standard requirements for hotels about disabled people. Britain’s labour market is characterised by diversity and flexibility. If you do not have a huge experience in hospitality, you can use your transferable competences, such as effective communication, motivation, leadership, punctuality, attention to details. This skills also will help to find a job in hospitality industry. In the 9 process of benchmarking, management identifies the best firm in their industry and compare the results and process of those studied to one’s own results and process. In this way, they will learn why these firms are successful. Technologies have had a great impact on the hospitality industry in recent years.

E-commerce plays an important role between suppliers and customers for information acquisition and business transactions. It helps companies in developing worldwide, spending minimum time and money. The Internet have a very big power nowadays. We book accommodation in hotels, search for a place, where to go, read reviews of hotels and restaurants, buy tickets for flight in the Internet. The UK hotel industry has proven to be strongest performer in Europe in the first six months of this year. Managers need to understand such factors as demographic changes, fluctuating food cost, resources scarcity. Population diverse, changes in family composition, income changes will influence hospitality services in 21st century. Brands lay very important role nowadays. A lot of people buy some products, stay in hotels, visit restaurants only for its name. As from the media or other people they know what it is and what expect from this. For example, while travelling customer will stay in “Mariott” or “Hilton” hotels, as they know that it is worldwide brand with high standards. Food Safety Management System consider customer requirements and what must to be done to meet them. It include British Retail Consortium, Safe Quality Foods, ISO 22000 or FSSC 22000. 3. 2 The current image of the hospitality business One of the goals of hospitality industry now, is to attract young qualified individuals.

Hospitality industry have a rapid growth in a number of countries. According to World Tourism Organization, the industry is now one of the biggest employers in many Western countries. Hospitality industry want to provide “quality” work opportunities for the school leavers. Less than 50% of the UK students had a positive attitude towards tourism employment. Students do not find the industry attractive for career option. The quality of the hospitality educational system plays a significant role in forming student’s perceptions. The salary, irregular working hours, no development opportunities are reasons why students do not choose this industry.

Hospitality industry is customer oriented business. Most companies create culture that supports excellent customer service. They provide trainings, motivate staff, observe management behavior to satisfy customer and make him happy. A company culture with high morale, trust and team loyalty can increase the productivity. A workplace where staff is motivated, satisfied can develop and attract new candidates. To satisfy customer hotel or restaurant need to know his expectations. They can know about customer expectations from feedback (surveys, reviews in the internet etc). There are guides that are marking, evaluating and rating hotels and restaurants.

It is very important tool, as a lot of customers are using them when choose where to go. Good reviews boost takings, while terrible ones can close restaurant or a hotel. The most famous Guide is Michelin Guide. To get there is very hard, restaurants and hotels, which are in this guide are very famous nowadays. One of the famous guide in UK is AA Guide. Star ratings, from one to five, show the standard of quality for hotels, guest accommodation and self catering. The Kitemark is a UK product and service quality certification mark which is operated by British Standards Institution. It is known worldwide now. The Kitemark is used to identify products, where safety is paramount, such as smoke alarms.

It is not legal requirement, but is often used as a point of 10 differentiation in competitive markets and is widely trusted. You can also use media(magazines, newspapers) to advertise more customers. Cookery programmes have generate a great interest among the public. Hospitality celebrity marketing is a very cost effective marketing and promoting business, but it justify costs. LO4 Potential trends and developments in hospitality 4. 1 Justified predictions for potential trends and developments in hospitality Hospitality industry is developing very quickly. Like in the fashion, there are trends in food and service. For example, few years ago a lot of people did not know what is sushi, but now there are sushi restaurants everywhere.

Sterling-Rice Group had identified trends in food for 2013 year. According to their survey, I can say that next year Asian tastes will come to UK restaurants. The spicy and fresh flavours of Thailand, Vietnam and Korea will give consumers a new take of comfort food. Moreover, kids menus will grow up. The restaurants will offer something special for kids. Meals will be more healthy, butter and bacon will be replaced for broth and beets. Popcorn is the snack of 2013. Hopefully, we will find popcorn in a lot of restaurants, pubs and bars next year. Moreover, sharing plates will be less popular next year and we again will order single plates with meat, veggies and snacks.

The vegetables will have big popularity as they are more healthy and do not need much time to prepare. More restaurants will have all-inclusive menu to satisfy all customers. Spanish cuisine will be trendy next year again. Asian cuisine was trend of this year, this tendency will continue next year as well. Especially will popular Korean food in 2013. Of cause native ingredients will be trendy as usual, especially English wine. Nowadays more and more people care about health. Organic foods are foods that are produced using methods that do not involve modern synthetics. Organic food is produced using environmentally and animal friendly farming methods.

We can find organic food not only in the restaurants, but also in shops. For example, there are one restaurant near to Oxford Circus which offer meat, vegetables, eggs from their own farm. With every year more and more restaurant began to cook meals from their own products. Moreover, restaurants will put more attention to local and seasonal products. Firstly, it will save money as price vary on food during the year. Seasonal fruit and vegetables can be grown naturally, without the use of expensive greenhouse. Customers can be disappointed with taste of strawberries in winter, as taste extremely is different from the natural taste of strawberries at summer. The majority of seasonal products are organic.

If you buy seasonal food you will support local farmers and as a result an economy of the country. Quality food on the go has become very popular in the UK. On the streets, near every station, in airports are a lot of places providing high quality food with quick services and take away menus. Fast Food goes gourmet. Many new brands sell steaks and chicken based dishes. They want to offer something quickly cooked, tasty and healthy. Coffee shops are very popular nowadays. Now you can have full lunch there, as they offer not only coffee, but also sandwiches, cakes, soups, salads. Firstly, pubs were places where you go for a drink, but nowadays pubs offer food as well. Food in pubs is high quality with good prices.

More and more gastro-pubs open every year, which offer a lot of different dishes. Boutique hotels popularity is growing up as well. It is a type of hotel which offer luxury accommodation, every 11 room has its own design. E-recruitment is the use of technology to attract candidates and aid the recruitment process. The use of technology with human resource management has grown considerably in recent years. The purpose of online recruitment is to make the process more efficient, effective and less expensive. First of all, E-recruitment will save time for job seeker, as well as for employer. You can apply online to thousands different places from home.

There is no need anymore to go to hotel or other place, bring CV, after come to interview, trial shift etc. Employee can select right candidates for interview, as now they can see CV online, ask interested their questions via e-mail or testing online. Moreover, employee can put advertise to the Internet what job vacancies they have and a lot of candidates will apply for this position. E-recruitment is very popular now, about 90% of hospitality industry is using it. Poaching, is the practise of recruiting people from other companies by offering inducements. Experienced and ambitions employee may have offers from company competitors for the same position, but with higher salary.

To hold staff in company employer should develop employees skills, take an interest in staff, provide trainings, help to achieve employee his goals, create good atmosphere at work. In the 21st century globalization is increasing in hospitality industry: a lot of foreign products came to our market, people are travelling more. A majority of consumers expect to use technology to order food in the restaurant more often in the coming year. A lot of customers expect that new technologies will come to the restaurants and there will be something new in ordering. Customers liked to receive special offers and advertising via e-mail or text messages. Probably this tendency will continue next year. Language learning is essential in airline and hospitality industry. With globalization the importance of languages had grown up.

If you knew languages you may be at advantage at many posts, as a lot of people travel or move to live to different countries and to communicate with them on their native language is welcome. 4. 2 An impact analysis for the predicted trends and developments Hospitality industry is developing every year. There are coming new technologies, fresh ideas. Every hotel, restaurant, bar want to attract more and more customers. People are travelling a lot nowadays and it is getting harder to astonish them with every year. Customers want to eat in trendy restaurants, stay in luxury hotels, try something new always. For every hospitality establishment is very important to develop every year. For example, I was working in one restaurant, it was very popular, had a lot of customers and proper.

But owners did not want to offer something new to customers, the menu was the same for years and as a result it had closed after few years. It happened because customers could not find anything new there, it is not interesting to eat the same dishes for few years. My advice is to renew menu at least every year and make surprises for customers. Moreover, the restaurants can put attention to seasonal products. For example, this autumn in our family restaurant we were offering wild mushrooms. The mushrooms were collected my head chef in the forest. A lot of people came to this offer, as they trust cooks of the restaurant ( it is dangerous to eat some mushrooms, so you need to know which mushrooms are suitable for cooking).

I advice Whitbread PLC put attention to boutique hotels, as they popularity is growing in Europe. In this type of hotels they can offer something special and surprise customer with service and accommodation. Moreover, next year customers will be interested in the restaurant with own farms, who can offer fresh and 12 organic food, as nowadays people care about healthy eating more and more. It is also good to have Wi-Fi access and LCD TVs in hotels and restaurants, as technologies are developing and are demand by customers. Conclusion To sum up, I can say that hospitality industry is developing in positive direction. A lot of technologies, new ideas came to this industry.

It is hard to be successful hospitality company, as you should always develop, satisfy customer and employees expectations. Also you should correspond to different hygiene, safety standards which were passed by UK and EU. Manager work is not so easy as it seems at first sight. They need to control everything, develop business and carry out a lot of standards. References “Welcome to hospitality. An introduction “ Kaye Chon, Thomas A. Maier (3rd edition) Lessons handouts http://www. mightystudents. com/essay/Strategic. Direction. Analysis. 69193 http://www. ehow. com/about_5598328_types-hotel-ownership. html http://media. wiley. com/product_data/excerpt/78/EHEP0004/EHEP000478. pdf 13

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