HOSPITALITY INDUSTRY

Hospitality Industry



Hospitality Industry

Introduction

The hospitality industry has been given due importance nowadays, these are for profit, private the government hospitals, not for profit institutions which have been established to facilitate the public. Both the government and the private hospitals compete in the same markets. Since many years the hospitality industry has been suffering from the situation of instability because of the changes taken place in the technology, and the introduction of new innovative technology in the industry. Nowadays the education is being given extra importance while hiring the staff in any organization or company (Lashley, 2009).

In the hospitality industry it is important to have a formal structure for the project as well as for the project staff, this structure will help an individual to understand the clear view of the project, as well as it will help the staff to understand their responsibility and their assignments, so it will become easy for the staff to achieve their project objectives and goals (Kandasamy, 2009). The business of hospitality is related to the distinct but almost related industries, which includes restaurant industry and hotel industry. The term hospitality includes larger system of companies; it includes food, transportation, cruise, theme park, travel and real estate industries. The traditional value proposition of hospitality has been expanded to a variety of services and entertainment offering. Hospitality refers to the relationship between the consumers and the companies (DITR, 2006).

Current structure of the hospitality industry

The current structure of the hospitality industry is quite complex, with five different components. The first component includes the ownership of business itself, the single unit companies have been owned by the independent entrepreneurs. Whether the multinational companies have a mixed ownership structure or they are partnership based companies. The second component includes a brand it is owned by a business associated with each location, usually the brands are owned by a central corporate entity, or it is licensed for a specific period of time under an agreement or a franchise (Davidson, 2008).

The third component includes daily operations of the hotel all the operations are being managed by the management of the company, while the local franchises are managed by the third party management company under the agreement. The fourth component includes the real state of each location, which includes both building and land. Leasing is most common in the restaurant industry, because in mostly in the hotel industry they emphasize on branding and on other operating activities (Coriat, 2002).

Most of the hotels were owned by the real estate developers they are the ones who initiate the hotel projects. The fifth component includes the distribution system which is used to connect the demand and supply within the market place. The hospitality economy has a wide turnover which has been estimated £90 billion of worth which directly contributes to the 2.44 million jobs, and these jobs estimates just below the 8% of the employment and this makes the United Kingdom economy as a fifth largest economy in the terms of ...