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Introduction to the Industry

Lesson 1/10 | Study Time: 60 Min
Introduction to the Industry

1.1 The Basics of the Industry

 

The hotel industry covers a range
of places, from small boutique hotels to those with hundreds of rooms that can
completely dominate a city.


The role of the hotel manager is
very clearly defined in that you are the one who is responsible for the smooth
running of the establishment on a day-to-day basis. However, it is not just
about keeping guests happy, as a large part of your job remit will involve the
correct a running of staff.

 

If we are looking at an actual
definition of the hospitality industry, then it loosely means the art of
welcoming guests and providing accommodation and food to those individuals who
are away from home. However, this definition has now been expanded to include the
building of a relationship between both the host and the customer in order to
provide the best experience possible.

 

The industry is very
service-based, and there is a real emphasis on the relationship that is created between
the host and the guest.

 

However, it is not purely focused
on the products and services that are provided, but also the way in which they are
provided to the guests.

 

The majority of hotels will
stress that it is the way in which everything is delivered that is the key part,
although clearly the product that is on offer should also be of a high quality.

 

A problem for the hospitality
industry is that their product can be replicated, which is why so much emphasis
is placed on the quality of what they offer. It is often the standard of the
experience that helps hotels to really stand out from one another, and as the
hotel manager, this is one thing that you need to be aware of from the
get-go.  You must understand what marks
your hotel as different and what you excel at in order to provide the best
experience possible for your guests.

 

As the manager, there is so much
responsibility resting on your shoulders due to competition being so tough. You
should always be aware that if a guest has an unpleasant stay at your hotel,
then they will go elsewhere the next time. They may also inform others of their
sad experience. Is this something you can allow to happen?

 

As the manager, you have to be
the last port of call that can resolve issues, understand where the industry is
going, and make a positive difference to the people staying in your hotel. It
is no surprise that this position is not suitable for everybody, but we will take
you through the different parts of the process of being a manager that will make
life easier.

1.2 The Scope of the Industry

 

 

When it comes to the actual scope
of the industry, it is difficult to put an exact figure on it in global terms
such as its size.

 

However, if we look at some of
the figures available, then it at least gives us an indication as to how
massive this industry actually is.

 

Some industry experts estimate
that there are about 15.5 million hotel rooms around the world, although that
number will have grown since the figures were released.  The branded hotel market, which means chains,
accounts for just over half of the total sales, and within that percentage more
than 30% of the rooms available came from just five names: Accor, Hilton, IHG,
Marriott, and Starwood.

 

This is an industry that has a
tendency to grow in line with the general economic growth of a country, which is
why the hotel industry is so tightly linked to the rises and falls of economic
output. However, it is constantly expanding year on year, as it is merely the
amount at which it is expanding that is different.  Part of the difficulty of understanding the
sheer size is the way in which the hotel industry falls under the banner of the
hospitality trade. This also includes bars and restaurants, so getting a true idea
of the size does become trickier as a direct result. 

 

You only have to look at the
range of types of accommodation to understand the magnitude of the industry that
we are talking about. Included under the remit of hotels are small
boutique hotels, 2-star to 5-star, and everything else in between. The
difficulty for a hotel manager is that their remit is also slightly different
with each hotel, since it is generally accepted that people are actively
seeking different standards of service, which is expected, depending on where
they are staying.

 

So, how does the scope of the
industry actually help you when it comes to the management side?

 

Well, it should mean that there
will always be a number of opportunities available to you, even if you do need to
begin as a middle manager of a specific department before working up the career
ladder. The style of the industry is one whereby people are forever moving on
to new pastures, opening up new opportunities for people to follow, and that is
why it is always possible to get into the industry once you have had the
appropriate training.

 

If the industry itself was more
of a niche, then life would certainly be harder, although as you will discover,
the industry is already tough enough in a number of ways.

 

FACT

In 2016, the hotel industry
generated a turnover of approximately £18.4 billion

Source: statista.com

 

1.3 The Basics of Hotel
Management
 

 

Obviously the aim of the hotel
manager is to make sure that the guests all have a wonderful stay by providing
them with an amazing place to sleep, gorgeous food, and their various needs
catered for.

 

To do this, the manager has to be
capable of running a number of different departments along within dividual
middle managers that ultimately leads to the hotel working as smoothly as
possible.

 

There are numerous jobs and
services that have to operate perfectly for a hotel of any size to function to
its full capabilities. As the manager, you are the person responsible for
making sure that the guests are happy, the hotel is clean, and the staff members
are doing their jobs, as well as being responsible for a number of issues related
to the business side of running the hotel. In other words, you need to have a
good general understanding of every aspect of the hotel industry to then be able to
make decisions that will impact how individual departments are run. This takes
a lot of training and experience in similar roles to really be able to get to
grips with the task at hand.

 

Having inadequate training and
experience will only lead to an increase in the likelihood of mistakes being
made that will not only have an impact on you, but the hotel in general.
Throughout the course, we will look at the various departments that make up the
hotel and the role you have to play when dealing with the different people. This
does, of course, ultimately mean that a good hotel manager also has to be a good
people person, as you are dealing with not only different characters with
guests, but also different characters with various ideas and preferences within
the staff.

 

If you keep this in mind, then
often a hotel manager will feel that they are performing a balancing act,
whereby they are trying to cope with a number of different issues linked to the
running of the hotel. However, this course will be able to help with these
different areas allowing you to feel more confident in your ability to make the
correct decisions that will ultimately reap dividends for the future of the
hotel.

 

In other words, the basics of
hotel management include the following.

 

*Making sure that the hotel is
being run correctly.

 

*Being in charge of staff.

 

*Being in charge of each
department of the hotel.

 

*Making sure that procedures are
followed in every department.

 

*Being a good people person.

 

*Making sure that guests are
satisfied with their experience.

 

There is a lot more to it, but we
will cover every aspect to provide you with more than enough training to forge
on with a career in the hotel management industry.

 

1.4 Hotel Management Planning and
Policy Making
 

 

We just provided a brief
explanation as to the different roles of the hotel manager, but it is important
that we also focus on two areas in particular, the ability to create plans to
ensure the smooth operation of the hotel and also creating and then
implementing hotel policies.

 

As the manager, you will be held
accountable by the senior management that oversee your actions. However, being
given this position shows a certain degree of trust in your ability to do the
job, and there is a tendency for a hotel manager to be given more leeway as
they prove that they are indeed able to push forward plans for the benefit of
the hotel.

 

These plans are essential for
being able to create goals and targets for the hotel, which is why you must
have a good understanding of the tourism industry in your area.  Who are the main customers that you should be
targeting? Are there any specific groups that come to the area? What kind of
services do people now look for in a hotel, and do you offer them? Looking at
the industry as a whole allows you, as the manager, to create a plan to deal
directly with those issues. By doing this, you will then be creating a model
that will allow the hotel to grow and increase its turnover, which is another
key component of being the general manager.

 

However, as the man ager you must
be able to identify areas that can be improved and create a plan that can be
put into action.

 

Generally speaking, we are
talking about it following a set path. Initially, there is the vision followed
by a statement as to what your aims are for the plan. After this, there is the
need to view the plan in both the long-term and short-term, as well as to
calculate the budget that is required in order to achieve the results that you
are aiming for. This is tied in with the need for a marketing plan and finally
the outcome has to be presented to the staff to allow them to make the relevant
changes in their department.

 

As the manager, it is not merely
a case of you making sure that individual areas are working well, but it is also
your responsibility to determine how they can be improved and to do so within
certain monetary limits. In order to do this, you must be able to communicate
with department managers as well as supervisors in order to collect the correct
feedback from them that you can then use to your advantage.

 

The extent to which you can plan
ahead will be dependent on the relationship that has been formed between
yourself and senior management. This is where your direct experience and
training play as a key role as it will allow them to determine how much
confidence they have in you. However, what we will show throughout the course
is the way in which making small changes, and implementing smaller sized plans,
can benefit your career and help you to make a name for yourself.

 

So, the points to stress
regarding hotel management planning include the following.

 

*You must have the ability to
identify areas giving cause for concern.

 

*You must be able to identify the
issue correctly to then take appropriate steps.

 

 *You must form both a long-term and short-term
plan.

 

*You must understand the concept
of the budget.

 

*You must understand the concept
of marketing.

 

*You must have the ability to
deliver the correct information to staff.

 

Creating a sensible plan for the
benefit of the hotel is something that has to be learnt and the only way of
doing that is by improving your understanding of the various aspects of running
a hotel.

 

1.5 Policy Making

 

 

 

Policy making also plays an
important role in helping a hotel to run more smoothly.

 

Planning and policy making
generally go hand-in-hand with one another and in this instance what we mean by
policies is when certain rules and procedures are brought into play that either
improve products and services, or completely change how things are done for the
benefit of the hotel.

 

The first step that a manager has
to take regarding policy making is clearly to identify areas where there is
some cause for concern or where improvements can be made. This can be done by
either examining each department or decision independently or via communication
with department heads where their opinion is both trusted and valued.

 

After an area that is giving
cause for concern has been identified, then it is the hotel manager that must
look at the potential solutions that can improve the situation. A policy to
tackle the situation should then be discussed with the appropriate individuals
in the hotel in order to make sure that everybody that will be affected by the
changes are now in agreement with the new policy. It is easier to implement the
changes with limited levels of resistance.

 

It is important to mention that
this aspect of being a hotel manager can be quite stressful, but once again it
goes back to your training and experience. There must be conviction in your
policy making and a large part of that conviction will come from your own
understanding of how the hospitality industry itself works and what is expected
of it from the guests.

 

Making decisions when in a
position of power is never easy and the key components of policy making in
connection with a hotel are as follows.


*An ability to discuss issues with
middle management.


*The belief in yourself to create
a solution that resolves a problem.

 

*The ability to put across that
solution to other staff members.

 

*The confidence to not only
implement the changes, but to stick to them.

 

We will look into policy making
at various times throughout the course, but it is important to stress the point
that having the ability to do this is an essential part of being a hotel
manager.

 

Summary of Module

 

This module has merely been
intended to provide you with a brief insight into the industry itself as well
as the kind of things that would be expected of you as the hotel manager. As
you can see, there is a lot to learn in order to then be able to do the best
job possible when in a position of power, but by learning the ropes it will be
easier to formulate plans and implement policies that can drive the hotel
forward.


Being a hotel manager is a
stressful job, but at the same time it is very rewarding.