Untitled Hospitality Industry in the UK Mondelez International Inc Student Name Student ID Institution Affiliation Instructor 0 0 Executive summary Globally, the hospitality industry includes one of t.
Hospitality Industry in the UK: Mondelez International Inc Student Name: Student ID: Institution Affiliation: Instructor 0 Executive summary Globally, the hospitality industry includes one of the fastest-growing sectors The industry significantly contributes to the United Kingdom's Gross Domestic Product (GDP) growth and global GDP This report aims to understand better the UK hospitality industry's current structure, detailing the major companies, major production locations, operations, the industry's diversity and descriptions(customer and markets), and the industries that make it up Moreover, uncover ethical and sustainability issues within the industry, specifically in the focus of the Premier Inn hotel, which includes a complete analysis of the firm, enhancing proper visualization of the business in the country(UK) 0 Introduction The hospitality business in the United Kingdom includes hotels, bars, restaurants, and leisure enterprises As per the findings of the British Hospitality Association, the industry provides around 4% of the country's gross domestic product (GDP) According to 2019 statistics, the industry contributed £59.3 billion to the countries economy, with the number of hospitality businesses summing up to 223,045, as of 2020, accounting for 3.7% of all businesses In the three months leading up to September 2020, the hospitality sector had a vacancy of over 2.38 million people in the United Kingdom, accounting for 6.9% of total employment The industry's places high importance on the satisfaction of its customers, its approaches evolving to fit the changing needs of society and its clients, including the implementation of adaptive and adaptive strategies such as Corporate Social Responsibility(CSR), ethical practices and sustainable practices Ethical practices in relation to employee interactions, industry stakeholders, customers, and suppliers(eliminating unlawful practices), CSR contribution to the community's social development, and sustainable practices for the well being of the present and future society As a result, enterprises and firms remain competitive in the industry market share, characterized as dynamic Objectives of the study Analyze the UK's hospitality industry Examine key stages in the industry Identify ethical and sustainable issues within the industry Introduce Premier Inn as a case study with the aim to visualize ethical and sustainable issues within the industry 0 Evaluate how responses or the lack of responses from the company on the matter will impact the companies performance over ten years Recommend measures to curb the issues(ethical and sustainable issues) Industry Analysis Current structure The UK hospitality industry is structured into four categories: the food and beverage sector, including restaurants, bars, cafes, and pubs; the travel and tourism sector; the Lodging sector, including hotels, motels, and hostels; and the recreation sector as entertainment sectors However, of the four sectors, food and beverage account for the largest industry in the UK; as a result, it is the fastest-growing industry, with more than half of companies expanding or recruiting new employees in the previous year Main companies in the industry The Stonegate Pub company Stonegate Pub, Owned by TDR Capital with its headquarters in Luton, the company became the UK's largest pub company after buying Ei Group for £1.27 billion on March 3, 2020 It oversees 1270 sites and 3457 leased businesses The Whitbread Company Until January 2019, Whitbread was the country's largest hotel and restaurant company before selling the Costa Coffee based in Houghton Regis and Bedfordshire However, Premier Inn is 0 the company's largest segment, with over 785 locations and 72,000 rooms The other segments include Brewers Fayre, Beefeater, Table Table restaurants and other companies The Compass Group The group is the largest foodservice corporation in the UK and globally based in Chertsey It is a British worldwide contract foodservice corporation with operations all over the world with over 500,000 employees Customer and markets Business travelers, small conference groups, tour groups and individual tourists are the major customers within the hospitality industry The business travel segment equating 9% of the UK hospitality sector Business travelers are less frugal than leisure travelers, spending around twice as much per day on average as they on vacations Regarding the hotels market segment, the market is divided into two types of hotels (chain and independent hotels) and three segments (Service Apartments, Budget and Economic Hotels, Mid and Upper Mid-scale Hotels, and Luxury Hotels) Supply chain Management Apart from system administration, supply chain management encompasses purchasing, production scheduling, order processing, inventory management, transportation, warehousing, and customer support, among other activities 0 Figure 1Supply Chain Management Value chain analysis The competitiveness of hospitality items is assessed through the use of value chain analysis The value chain analysis of the hospitality industry focuses on the business areas where value is created and assists in identifying competitors Activities in a value chain system include primary and secondary activities Some of the most important activities in the sector include greeting customers or managing the front desk, providing services, processing check-outs, and generating sales and marketing leads Customers can be acquired and retained in the services business by utilizing the value chain Pre-sales assistance through post-purchase support is all part of customer acquisition and innovation Outbound calls, marketing database upkeep, and client needs research are among the activities evaluated Customer retention can be accomplished in various ways, including customer service, billing and collection, tracking, and follow-up The analysis of the client database, billing inquiries and modifications, and the resolution of customer support concerns and problems are all part of this step These criteria can be combined to assess improvement potential and the strategy's fit with the environment 0 The distribution of services and goods to customers is called outbound logistics Many hotels, for example, start with inbound logistics, which involves, among other things, contracts with suppliers for food, beverage, laundry, and inventory management This includes both conference rooms and dining places Figure 2hospitality supply chain system An Overview of the UK's hospitality industry There are numerous differentiating characteristics in the modern United Kingdom hospitality sector; as seen by the vast spectrum of enterprises that comprise it, the industry is enormously diversified Numerous firms offer food and beverage services, in addition to event and catering services, the likes of St Giles London Hotel, the Tower Hotel, and others Therefore identifying and appreciating the distinctions between businesses in this industry is critical 0 Additionally, the industry's diversity in the target market and service levels may be traced back to the services and products available to customers For instance, different hotels provide consumers with lodging or bed and breakfast services, with varying star classifications (from one to five) catering to guests with varying financial means Moreover, according to regulations, bars and nightclubs are expected to sell solely alcoholic beverages compared to restaurants However, the worldwide closure of national borders during Covid-19 had a devastating effect on the hospitality industry, represented in figure below However, while consumer spending on hospitality increased in May of 2021, it is still less than 70% of pre-pandemic levels, and turnover remained one-quarter below 2019 levels in the same month Figure includes a comparison of the 2020 and 2019 hotel industries Figure 3Decline in the Hospitality industry 0 Figure A comparison of the 2020 and 2019 hotel industries In May 2021, hospitality spending expanded slower than consumer spending, and supplier payments to food and beverage companies remained at roughly half of pre-pandemic levels in the industry Revenues in that month (May 2021) totaled over £1.2 billion, down from £3.4 billion the previous month Following a partial relaxation of restrictions in May 2021, this value climbed to £6.9 billion, the highest level since August 2020 However, this is still a quarter of a percent lower than 2019 According to the most recent numbers available, restaurant and mobile food service activities profited from this recovery, with turnover hitting £3.3 billion in May 2021, more than five and a half times what it was in May 2020 It is critical to recognize that a great deal has changed since the pandemic 0 Sustainable issues within the industry Globally, the tourism industry's emphasis on sustainability results from the industry's extensive consumption of energy, water, and nonrenewable resources, as well as the release of toxic substances into the environment According to the statistics provided by the Waste and Resources Action Programme, annually, the industry generates 2million tonnes of waste Hotels account for 289,700 tons of production of waste annually, inclusive of food waste weighing 79,000 tons 9% of waste from the segment; pubs accountable for the generation of 73,000 tonnes waste from food, an equivalent of 19% of waste from the segment; restaurants accounting for the generation of 915 400 tonnes of garbage inclusive of waste from food amounting 199 100 tonnes an equivalent of 22% waste from the segment); moreover, other hospitality segments in relation to hospitality have also been considered contributors, including fast food enterprise equivalenting 8.3%, leisure 7%, education 4%, and services 3% 0 According to a study conducted by BRITA UK, 70 percent of businesses attempt to reduce their use of single-use plastics such as straws and plastic water bottles In addition, 64 percent of customers stated that they would return to a business to refill their water bottles while there Ethical issues affecting the industry Concerns regarding business ethics and ethical issues in everyday industrial activities, particularly in the hospitality industry worldwide and in the country The supply chain, the local community, the workplace, and, of course, the client are all ethical considerations in the UK's hospitality industry Concerns on employee exploitation and minimum wage payment, and managers are frequently accused of theft, harassment, and age, gender, color, and religious discrimination, leading to formal complaints and lawsuits against the company The lawsuit against Stanfaffords hotel manager for embezzling money from the firm Additionally, the lawsuit against Hilton Hotels links to racial prejudices from the employee towards a customer Moreover, overbooking, theft, whistleblowing, mistreatment of others, racial prejudices, sabotage, profiting at the expense of supplemental service to clients, and false information on restaurant menus, hotel brochures, and websites are other unethical acts prevalent in the hospitality sector Social responsibility issue As a result, sustainability must be a top priority in the hotel industry in the United Kingdom Individuals, non-profits, and governments have all attempted to change public perceptions Concerns about social and environmental responsibility have increased in recent years They are also concerned about the prospects of the hotel industry As a result, hoteliers 0 must be concerned about the environment and society to attract investment Sustainability has emerged as one of the most severe challenges facing the hotel sector in the United Kingdom today, owing to rising operational costs As a result, the hospitality industry has realized the value of implementing corporate social responsibility programs Premier Inn Analysis Founded in 1987, the Premier Inn hotel chain is the largest in the United Kingdom, wellknown for offering its clients high-end services and amenities; favored option for those who want elegance Overall, the firm possesses over 800 hotels with over 72000 rooms The hotel has a significant presence in the United Kingdom market and a strong brand image, enhancing the company's flourishing in the face of the pandemic The general population well regards the services provided by the organization Moreover, the organization has significantly exploited its resources in understanding the needs and wants of its customers; however, similarly to the other business within the industry, the hotel has had ethical and sustainability issues in link with its supply chain, the local community, the workplace, and the client, as they begin to recover from the economic consequences of the epidemic The organization's value chain looks for behaviors that add value and provide a competitive advantage It categorizes the company's operations into principal activities and support functions; as presented in figure 0 Figure 5Premier Inn valuee chain analysis Primary Activities Inbound logistics Premier Inns' inbound logistics system covers 800 hotels with over 72000 rooms In order to keep costs down, the hotel procurement group consolidates purchases into national contracts for its many brands This method allows the business to control the whole supply chain As a result of this direct negotiation with suppliers, premier Inn's supply chain management and inbound logistics are unique Outbound logistics Ethical and sustainable issues Ethically, the hotel's inability to maintain excellent sanitation in the COVID-19 situation leaves consumers vulnerable, in link with the hotel's issues for maintenance, hindering the organization in maintaining proper hygiene, an unethical practice However, on the issue of sustainability, the hotel contributed to lowering carbon emissions by 26 percent and water 0 consumption by 20 percent as of 2020, an initiative the organization took towards reducing emissions Recommendation For many motels, customer service and workflow management are becoming increasingly difficult to manage and maintain, however with the implementation of tracking software, such as Amadeus Service Optimization software, in aid of maximizing employee's capabilities, impacting hygiene standards Amadeus HotSOS, which is offered for free, allows managers to schedule and track the cleaning of guest rooms and communal areas They can also send out reminders, manage escalations, and analyze data to improve productivity and help hotels more with fewer resources Corporate responsibility Premier Inn is well-known for providing a wide range of amenities and services to the community An excellent example is the hotels' service to the Great Ormond Street Hospital(GOSH), where the less privileged children benefit from donations Also includes the "Good Together" and "Whitbread's way forward" programs at the hotel Through the "Good Together" program, the hotel contributed to lowering carbon emissions by 26 percent and water consumption by 20 percent as of 2020, an initiative the organization took towards reducing emissions(corporate responsibility) In addition, the firm has designed a comprehensive environmental and energy policy that adheres to national environmental policy guidelines 0 Impact of response or no response on the company's performance Response Businesses must commit to functioning ethically in all aspects of their operations to maintain a positive image This refers to how employees, the environment, and customers are treated Consistent ethical behavior boosts public reputation, which aids in attracting new investors and retaining current owners, impacting the hotel's current and future image and operations No response The lack of response to the organization's ethical and sustainability issues will render the business unfit for its services, as per the regulations set by the government to protect individuals from the coronavirus threat; therefore, the probability the organization may be out of business within the next ten years Conclusion In conclusion, organizations in the industry are anticipating a return to what will almost certainly be a new sense of business as usual However, the timing and breadth of such a return are now unclear The ability to foresee future trends and the interaction between sustainability and the hotel industry is extremely difficult; currently, there is little indication of the end of the virus, which attributes as a threat in the industry 0 ... 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