Student: Linda Okonkwo

Assignment one, Unit one

Tutor: Alison Williams-Abeynaike

Word Count:

1040

Date Submitted: 25 January 2013

HOSPITALITY INDUSTRY

Hospitality is the provision of accommodation, meals and drinks for on the site consumption in venues away from home (Final Report, 2010).

Components of hospitality industry Hospitality industry comprises of Hotels & related services; Restaurants & related services; Catering; and event management.1 Hospitality is categorized into commercial and service sections. The commercial sections include hotels, restaurants and pubs. The service category comprises educational institutions, hospitals and prisons.

Scope of hospitality industry Hospitality is the fastest growing industry in the world. Hospitality creates one new job every 2.5 seconds (Walker, 2010).

The hospitality industry grows at a rate of 23 percent faster than the global

economy.

According to the World Travel and tourism council, the hospitality industry

employs 212 million people, earning approximately $3.4 trillion US dollars annually.

The hospitality industry is the number one employer after the United States

government, providing 8.1 per cent of all jobs in the United States.

The year 2010 witnessed a 21-35 per cent increase in the demand for

restaurant/food service managers.

http://www.bha.org.uk/wp-content/uploads/2010/10/BHA-Economic-Contribution-of-UK-Hospitality-IndustryFinal-.pdf

Demand for hotel managers and assistant managers positions grew 10-20% in

2010 (Eastern Michigan University).

The UK hospitality industry employs over 2.4 million people making it the fifth

largest employer in the country (Final Report, 2010).

STR Global estimates that there are over 187,000 hotels that provide approximately 17.5 million guest rooms across the globe (Dennis, 2012).

There are over 80 different job options undertaken by people of diverse cultures in the industry.2

Core occupation in the hospitality sector are kitchen and catering assistants, chefs/cooks, waiting staff , bar staff ,hotel, restaurant and catering managers.

Hotel versus Restaurants

Hotels and restaurants belong to the commercial segment of the hospitality industry.

There are around 50-60,000 hotels in the UK.

The hotels in the UK employ about 16% of the total hospitality workforce.

The restaurant sector is the largest sector of the hospitality industry in the UK based on the number of outlets and employees.

There are over 70,200 restaurant outlets in the UK.

http://www.pearsonschoolsandfecolleges.co.uk/Secondary/Vocational/HospitalityandCatering/WJECGCSEHospital ityandCatering/Samples/Samplepages/WJECGCSEHospitalitySamplePages.pdf

The UK restaurant sector employs about 1.26 million or 52 per cent of the total number of people working in the hospitality industry in the UK.

The restaurant industry employs equal number of men and women (CTH, 2012). The restaurant sector employs a relatively young workforce, with 16% of staff aged 16-19 and a further 32% aged 20-29.

More than half or 54 per cent of all restaurants employees are full-time staff.

Organisational Structure of a Hotel

Source: http://www.enterpriseplus.net/hotel.pdf accessed 29 December 2012.

The organisational structure of a typical hotel consists of a general manager who supervises the day to day running of the hotel. The general manager coordinates the activities of departmental heads to ensure the smooth functioning of the hotel.

There are 7 main departments in most hotels. These are the rooms division, the accounting department, food and beverages department, sales and marketing, engineering and maintenance, security and human resource divisions.

Rooms Division is an important department in a hotel because it provides about 60.2 per cent of total hotel revenues. The rooms division comprises the front office, reservation, housekeeping, uniformed service and telephone.

The front office is responsible for selling rooms to guests. It is headed by a front office manager who supervises guest services as well as ensures that accurate room statistics together with room keys inventories are maintained. The front office manager also ensures guest accounts statement are accurately maintained. He is assisted by the reservation, housekeeping, uniformed and telephone operatives.

The food & Beverage Department is the second largest source of revenue for a typical hotel after the rooms division. The F& B section typically generates 23.1 per cent of total hospitality revenue from food sales, and 8.6 per cent from sales of beverages. The section is headed by an F& B manager.

There is also the sale & marketing division composed of sales, convention services, advertising and public relations. The division is responsible for branding and enhancing the marketability of the hotel.
5

The accounting division monitors and regulates the financial activities of a hotel establishment. They are responsible for paying outstanding invoices, making bank deposits and compiling financial reports.

The engineering and maintenance division maintains the hotels structure, electrical and mechanical appliances as well as the equipment. Smaller hotels usually outsource their engineering and maintenance needs.

The security division ensures the safety and security of guests, visitors and employees.

The human resource division is responsible for recruiting suitably qualified staff into the organisation. Additionally they are to ensure employees safety and good working conditions.

Organisational Structure of a Restaurant

Source: http://www.scribd.com/doc/24822260/Organizational-Chart-Restaurant

The top of the organizational structure of a restaurant is occupied by the restaurant owner. The owner is provides direction and exercises over all activities of the restaurant. A restaurant is often divided into the kitchen and the dining room.

The kitchen is where food is prepared by a group of chefs and cooks. It is headed by a kitchen manager who is responsible for the organisation and preparation of all food coming out of the kitchen. There is also a head chef who is in charge of all the chefs.

The dining room manager ensures guests are properly served and have a pleasant experience. He/she coordinates the activities of the waiters and waitresses.

Usually, a head waiter or waitress is appointed to liaise between the servers and managers.

At the foot of the organizational structure of a restaurant are the servers, dishwashers and other employees. This group of staff are often at the lowest level of authority within a restaurant.

Occasionally, some restaurants use hosts/hostess to welcome guests and organize seating rotations for servers.

CONCLUSION

The hospitality industry is one of the fastest growing industries in the world and a major component of the UK economy. Hospitality provides a wide range of service and products and includes a diverse field of endeavour. The hotel and restaurant sectors belong to the commercial segment of the hospitality industry. They are therefore designed to make profit. The organisational structure of hotels and restaurants shows that diverse nature of job options available in the hospitality industry. This includes chef, accountants, telephone operator, reservation agent, security operative, engineers etc.

References Walker, J (2010), Introduction to Hospitality Management, Third Editon, ISBN-10: 0135061385.

Final Report (2010), Economic Contribution of the UK Hospitlaity Industry, available at http://www.bha.org.uk/wp-content/uploads/2010/10/BHA-Economic-Contribution-of-UKHospitality-Industry-Final-.pdf, accessed on 24 December 2012.

Confederation of Tourism and Hospitality (2012), Global Hotel Industry, available at

http://ncba.ie/student_and_teacher_resources_files/The_Global_Hospitality_Industry.pd f, accessed on 24 December 2012.

Brotherton, B (2000), An Introduction to the UK Hospitality Industry: A Comparative Approach ISBN 0750647116.

The

UK

Hospitality

Industry,

available

at

http://www.pearsonschoolsandfecolleges.co.uk/Secondary/Vocational/HospitalityandCat ering/WJECGCSEHospitalityandCatering/Samples/Samplepages/WJECGCSEHospitalit ySamplePages.pdf, accessed on 28 December 2012.

Eastern

Michigan

University,

Hospitality

Industry

Statistics,

available

at

http://www.emich.edu/sts/hrm/hospitality.htm, accessed on 29 December 2012.

Dennis, S (2012), How many hotels in the world are there anyway?, available at http://www.tnooz.com/2012/03/26/news/how-many-hotels-in-the-world-are-thereanyway-booking-com-keeps-adding-them/, accessed 26 December 2012.