INTERNATIONAL SCHOOL OF

MANAGEMENT & TECHNOLOGY

ASSIGNMENT COVER SHEET

STUDENT DETAILS

Student ID Reg No.

Family Name Ghimire Given Name Niraj
Enrolment Year 2023 Section
Semester Foundation course Email [email protected]

UNIT DETAILS
Unit Title Foundation Course Unit Code
Assessor Name Issued Date 29TH December 2022
Assignment Title Hospitality Industry
Assignment No 1 Submission Date 8TH January 2023
Qualification BTEC HND Campus ISMT college
STUDENT ASSESSMENT SUBMISSION AND DECLARATION

When submitting evidence for assessment, each student must sign a declaration confirming that
the work is their own.

Student Name Niraj Ghimire Assessor Name Birendra Parajuli

Issue Date 29TH December 2022 Submission Date 8TH January 2023
Program BTEC HND
Unit Name Foundation course
Assignment Title Hospitality Industry
Plagiarism

Plagiarism is a particular form of cheating. Plagiarism must be avoided at all costs and students
who break the rules, however innocently, may be penalized. It is your responsibility to ensure that
you understand correct referencing practices. As a university level student, you are expected to use
appropriate references throughout and keep carefully detailed notes of all your sources of materials
for material you have used in your work, including any material downloaded from the Internet.
Please consult the relevant unit lecturer or your course tutor if you need any further advice.

Student Declaration

I certify that the assignment submission is entirely my own work and I fully understand
the consequences of plagiarism. I understand that making a false declaration is a form of
malpractice.

Student signature: NIRAJ Date: 8TH January 2023

Pearson Education 2018

Higher Education Qualifications
NIRAJ GHIMIRE FOUNDATION COURSE BTEC HND

Table of Contents
ABSTRACT.................................................................................................................................... 4

SECTION-I ..................................................................................................................................... 4

INTRODUCTION .......................................................................................................................... 4

Types of business within the hospitality industry ........................................................................... 4

layout and organization chart of operational department ............................................................. 10

Current structure; scope and size of hospitality industry .............................................................. 12

Hospitality industry:.................................................................................................................. 12

Scope of the hospitality:............................................................................................................ 12

Size of the hospitality industry: ................................................................................................ 13

Analyze the contribution of the tourism industry in local, national, and international economic 14

Tourism industry: ...................................................................................................................... 14

Contribution of the tourism industry in local economy: ........................................................... 14

Contribution of the tourism industry in national economy: ...................................................... 15

Contribution of the tourism industry in international economy: .............................................. 16

Conclusion .................................................................................................................................... 17

References ..................................................................................................................................... 18

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List of figures:

Figure 1 : Organizational Chart .................................................................................................... 11

Figure 2: Hospitality Industry ....................................................................................................... 12
Figure 3 : Scope of the hospitality ................................................................................................ 12
Figure 4 : Size of the Hospitality Industry .................................................................................... 13
Figure 5 : Tourism Industry .......................................................................................................... 14
Figure 6 : Contribution of the tourism industry in local economy ............................................... 14
Figure 7 : Contribution of the tourism industry in international economy ................................... 16

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List of Table:
Table 1 : Contribution of the tourism industry in national economy ............................................ 15

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ABSTRACT
The hospitality sector, which includes a wide range of businesses that provide lodging, beverages,
and event organizing services, is diversified and extensive. Small, independently owned hotels and
restaurants to huge, global corporations and franchises can all fall under this category. In this
research, we will look at several hospitality business kinds, their organizational structures, and
their functional subdivisions. We will also look at the industry's present size and scope and
examine how the various operational and functional parts of the company interact with one
another. Finally, we will look at how the tourist sector affects regional, governmental, and global
economies.

SECTION-I
INTRODUCTION
First, it is essential to explain what we mean when we talk about the hospitality sector. Because it
is such a large sector, only a limited percentage of individuals can clearly and effectively define
what the hospitality industry is and is not. While most people have a reasonable overview of the
types of companies that represent hospitality brands. Essentially, the term "hospitality industry"
refers to a wide range of enterprises and products associated with pleasure and client happiness.
The concentration on concepts of luxury, pleasure, enjoyment, and experiences as opposed to
providing for requirements and fundamentals is another distinguishing feature of the hospitality
sector (Insights, 2020).

Types of business within the hospitality industry

The hospitality sector includes a wide range of different sorts of enterprises, such as:

Hotels: These are establishments that offer short-term, paid accommodation. Small, affordable
motels to enormous, opulent resorts—hotels come in many shapes, sizes, and features.

Bed and breakfast: A bed and breakfast is a modest, privately owned lodging facility that serves
breakfast to visitors each morning.

Vacation rentals: Vacation rentals are furnished houses, apartments, or condominiums that are
available for short-term leases. These homes are frequently rented by visitors for a week or longer.

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Resorts: Resorts are hotels with a variety of amenities, including several swimming pools, spas,
fitness centers, and extracurricular activities. Some resorts are situated in a specific location, while
others are close to well-known landmarks.

Motels: These are tiny, by-the-road lodging establishments that often provide easy access to the
rooms for travelers arriving by automobile. Motels are frequently more affordable than other kinds
of lodgings.

Hotels: Budget-friendly lodging options known as hostels provide guests with both private rooms
and communal dormitory-style quarters.

Casinos: A casino is a business that lets customers play a variety of games of chance, such slot
machines and table games like blackjack and roulette.

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Operational and functional departments within a hospitality business

➢ A variety of operational and functional departments within the hotel industry will be
looked at in this article. Although there are many various kinds of businesses in the
hospitality sector, this article's focus is on a hotel's operational and functional divisions.
The housekeeping department, food and beverage service department, food production
(kitchen), and front office departments are a hotel's four main operational departments.
Hotels typically have a variety of functional departments in addition to these, including
departments for marketing, human resources, accounting & finance, and purchasing
(David, 2019).
❖ Administrative Department of a hotel
1. Housekeeping Department
➢ This is a crucial hotel department that has a direct bearing on visitors' experiences. It
makes sure that all of the public spaces, including the bathrooms, lobbies, corridors, and
common areas, are tidy and ready for use. After guests check out, housekeepers give the
rooms a thorough cleaning to make sure the new guests arrive to immaculate rooms or
suites. In actuality, the primary responsibility of the housekeeping division is to guarantee
that the hotel consistently meets high standards for cleanliness (David, 2019).

2. Department of food production (kitchen)

➢ Kitchen department is another name for the department that produces food. It is in charge
of carrying out the actual food preparation. Some of the most crucial positions in this
division are those of chef, sous chef, cook, kitchen porter, and kitchen manager. This
department makes sure that food preparation occurs in a clean environment and that food
safety regulations are adhered to properly and effectively (David, 2019).

3. Department of food and beverage service

➢ Customers must consume the meals provided in the kitchen and the drinks made in the
bar. The food and beverage service department is in charge of this. This division makes
sure that the waiters, waitresses, and anybody else serving the customers provide food
and beverages to their tables in accordance with their requests and do it in a friendly
manner (David, 2019).

4. Front Office Department

➢ The front desk workers of a hotel are the guests' first point of contact. The front office
staff is in charge of making sure that guests are greeted politely and professionally and
are allotted rooms in accordance with their reservations. The front desk staff also

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addresses complaints from visitors (if there are any) and gives them access to any
pertinent information they require (David, 2019).

❖ Functional hotel departments

1. Marketing Department
➢ Understanding and profitably addressing client needs are key to marketing (CIM, 2019).
A hotel's marketing department performs a variety of duties. For instance, the marketing
department's duties include conducting market research to comprehend the wants and
demands of guests, creating new services, and running advertising and sales promotion
efforts. More details on the idea of marketing are available in the article "Definition and
nature of marketing (David, 2019)."

2. HR Department
➢ A hotel's human resources (HR) division handles a variety of duties. One of the main
duties of a hotel's HR department is to design jobs, develop job responsibilities and
person specifications, advertise vacancies in the proper media, hire and train new
employees, and fire those who perform poorly (David, 2019).

3. Department of finance and accounting

➢ One of a hotel's most crucial departments is this one. Some of the key duties of the
accounting and finance department include cost control, billing, credit control, dealing
with tax concerns, preparing financial statements, budgeting and budgetary control,
managing payroll system, and ensuring compliance with applicable laws (David, 2019).

4. Purchase Department
➢ The procurement department is another name for the purchasing department. This area of
a hotel is in charge of making certain that the business has access to the best raw
materials, tools, and other necessities at the most affordable pricing so that it can run
effectively (David, 2019).

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Review the interrelationships of the operational and functional units within a chosen
hospitality business
➢ To ensure the smooth operation of the company and the satisfaction of customers, the
operational and functional units in the hospitality industry frequently collaborate closely.
Here are some instances of how various parts of a hospitality business interact (David,
2019):

1. Front desk: This department is in charge of overseeing all aspects of the visitor
experience, including check-in, check-out, and any requests or issues they may have. In
order to make sure that guest rooms are tidy and prepared for arrival, the front office
works closely with the housekeeping division and the food and beverage division. The
latter handles any meal reservations or special requests (David, 2019).

2. Housekeeping: Cleaning and maintaining the guest rooms and public areas is the
responsibility of the housekeeping department. To make sure that guest rooms are ready
for arrival and to take care of any maintenance issues, they collaborate closely with the
front office (David, 2019).

3. Food and beverage: Food and beverage management is the responsibility of the food
and beverage department, which also oversees room service, bars, and eating
establishments. They collaborate closely with the front desk to manage special requests
and bookings for dining as well as with the kitchen to prepare and serve meals and
drinks (David, 2019).

4. Kitchen: All food and beverages offered in the hotel industry must be prepared and
produced in the kitchen. To make sure that orders are produced and served in accordance
with the necessary standards, they collaborate closely with the food and beverage
department (David, 2019).

5. Sales and marketing: The sales and marketing division is in charge of publicizing the
company and luring customers. To guarantee that visitors have a good time and to entice
them to stay again in the future, they collaborate closely with the front office (David,
2019).

6. Human resources: The hiring, training, and paying of the company's employees are
under the purview of the human resources division. They collaborate closely with each
department to maintain a skilled and enthusiastic workforce for the company (David,
2019).

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7. Finance: Budgeting, foreseeing, and accounting are just a few of the financial
responsibilities that fall under the purview of the finance department. They collaborate
closely with every department to make sure the company is profitable.
Overall, the operational and functional units in a hospitality business are interdependent,
with each unit contributing to the success of the business and the satisfaction of guests
(David, 2019).

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layout and organization chart of operational department

Telephone and Reservation Front office Personal Assistant to

Telex manager’s office general manager

General
Fax and
CORRIDOOR manager’s
printer
Safety lockers office

Information Reception Cash and bills

E
N
Travel desk T
R
LOBBY A
N
C
Lobby manager Bell desk
E

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According to the organizational structure below, it was essentially divided into six divisions:
finance, front office, human resources, food and beverage, sales, and logistics.

Figure 1 : Organizational Chart

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Current structure; scope and size of hospitality industry

Hospitality industry:

Figure 2: Hospitality Industry

Before we dive into the scope, let us explain hospitality industry; it is the industry that is engaged
in the process of satisfying the needs of the customer and generating profit for the stakeholders. It
is one of the fastest growing industries, but a slump in the world economy can adversely affect it
due to over-dependence on tourism. And if the world economy goes through a recession like in
the year 2008, the disposable income of the people will recede, and they are going to travel less
and thus affecting the hospitality industry. Some of the major segments of this industry are
business related to tourism, hotels, restaurants, event planning, private clubs, travel planning,
managed food services, etc. This industry is a major contributor to the GDP of any nation and more
for countries that depend on tourism as a major source of income (Scott, 2020).

Scope of the hospitality:

There are only a few industries that have propelled
as fast as the hospitality industry after the collapse
of the world market of 2008. This industry is
growing at a very rapid rate providing a financial
backbone to many countries including the UK. The
size of the hospitality industry UK has grown
Figure 3 : Scope of the hospitality

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considerably in the past two decades. Some of the scope and specialized fields of the hospitality
industry are listed below.

➢ Airline Catering (flight kitchen) and Cabin Services

➢ Cruise Ship Hotel Management
➢ Club management
➢ Kitchen Management (in hotels or running canteens in college, schools, in factories,
company guest houses etc.)
➢ Guest Houses, resorts
➢ Catering departments of railways, banks, armed forces, shipping companies etc.
➢ Forest Lodges
➢ Hospital administration and catering
➢ Hotel and Tourism Associations (for example: state tourism development corporations)
➢ Hospitality services in various MNCs
➢ Kitchen Management (in hotels or running canteens in college, schools, in factories,
company guest houses etc.)
➢ Hotel and catering institutes (as a management trainee/ marketing or sales executive)
➢ Self-employment

Size of the hospitality industry:

Hospitality can be defined somewhat broadly as an industry that focuses on providing consumers
with a means to participate in leisure activities, be that staying in a hotel or dining in a restaurant.
It encompasses many industries, the largest of which are accommodation and food and drink
services. In 2020, the global hospitality market reached 3486.77 billion U.S. dollars and was
forecast to grow to 4132.5 billion U.S. dollars in 2021 at a compound annual growth rate (CAGR)
of 18.5 percent (statista, 2020).

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Analyze the contribution of the tourism industry in local, national, and international
economic

Tourism industry:
Tourism is a major economic and social significant that
has been recognized in both developed and developing
countries. Tourism is the temporary movement of people
to destinations outside their normal places of work and
residence. The activities undertaken during their stay in
these destinations by facilities are meant to cater the needs
of the consumer. The act of traveling for pleasure is a luxury. Until recently only a restricted few
had the time and money to travel. Increasing leisure, Figure 5 : Tourism Industry

higher incomes and greatly enhanced mobility have

combined to enable more people to partake in travel (Anon., 2023).

Contribution of the tourism industry in local economy:

Visitors spend money with the community's businesses. Restaurants, retail stores, boutiques and
businesses of all varieties have the potential to earn more when their community attracts tourists.
As a result, everyone from business
owners to employees will have more to
spend within the local economy (Anon.,
2023).When tourists travel to a
community, they bring opportunities for
local business owners and the hard-
working individuals who hold the area
together. Ultimately, tourism paves the
way for positive change. Businesses and Figure 6 : Contribution of the tourism industry in local economy

governments allocate resources to enhance the visitor experience while improving residents’
everyday lives (Anon., 2023).

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For example:

➢ Service
➢ Job opportunities
➢ Infrastructure
➢ Revenue
➢ culture

Contribution of the tourism industry in national economy:

Table 1 : Contribution of the tourism industry in national economy

The dynamism in tourism is its unique characteristics, which makes it an industry with
multifaceted and multi-product nature. The tourist demand is complemented by goods and
services, which are not only spatially disparate but also functionally different (Taipei 2005: 127).
It is open a new economic opportunity for many countries especially for developing countries
(Schipper and Abietol 2008). In a developed country, where the production base is strong, the
transmission of these impulses lasts for quite a long time and as such the multiplier effect of these
expenditures on the economy remain higher (Anon., 2023).

Tourism revenue in 2018 counted for 7.9% of the country’s Gross Domestic Product (GDP) and
supported more than 1.05 million jobs, with the expectation of providing more then1.35 million
jobs by 2029. In year of 2019, contribution of travel and tourism to GDP for Nepal was 2.4 billion
US dollars. It played an important role for Nepal. Contribution of tourism to GDP of Nepal
increased from 0.6 billion US dollars in 2000 to 2.4 billion US dollars in 2019 growing at an
average annual rate of 8.80%. Tourism is one of the sectors which plays a crucial role in country
development and also generates foreign revenues. To promote the tourism Nepal Government
officially announced the year 2011 was declared with a special opening ceremony at the President
Dr. Ram Baran Yadav. Realizing the job creation potential of the industry of tourism is raising
awareness across government, media and the general public of the importance of hotel industry

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and the crucial role it plays in the Nepal’s economy. Tourism alone brings in $7.5 million into the
already delicate Nepalese economy (Anon., 2023).

Contribution of the tourism industry in international economy:

Share of the total gross domestic product (GDP) generated by travel and tourism worldwide from
2000 to 2021:

Figure 87 : Contribution of the tourism industry in international economy

GDP = total value of all goods and services produced in a country in a year.

Travel and tourism accounted for 6.1 percent of the global gross domestic product (GDP) in 2021,
denoting an increase over 2020 but remaining below the figures reported prior to the coronavirus
(COVID-19) pandemic. Overall, the total contribution of travel and tourism to the global GDP
amounted to roughly 5.81 trillion U.S. dollars in 2021 (Anon., 2023).

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Conclusion
In conclusion, the sector of the hotel industry is broad and diverse and includes a large range of
companies that offer a wide range of services. It is an important economic factor, with the tourist
sector producing considerable sums of money and providing a sizable number of jobs. In this study,
we'll examine the several hospitality business kinds, the organizational structure and functional
departments of a particular hospitality company, and the interactions between the various
operational and functional parts of the company. We will also look at the current size and scope of
the sector as well as how the tourist sector affects regional, governmental, and global economies.

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References
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business/
[Accessed 3 january 2023].

David, J., 2019. department of food and beverage service. [Online]

Available at: https://www.howandwhat.net/operational-functional-departments-hospitality-
business/
[Accessed 3 january 2023].

David, J., 2019. department of food pproduction(kitchen). [Online]

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business/
[Accessed 3 january 2023].

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[Accessed 3 january 2023].

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business/
[Accessed 3 january 2023].

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business/
[Accessed 3 january 2023].

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[Accessed 3 january 2023].

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[Accessed 3 january 2023].

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