Influences in Conference and Banqueting industry - Assignment Example

? Influences in Conference and Banqueting industry By: Presented (Due Conferencing and Banqueting in the United Kingdom Hospitality industry encompasses the establishments that provide accommodation, meals, drinks, conferencing services among other related services. The hospitality industry provides two major services, which are the overnight accommodation and sustenance for people. The UK tourism industry has recorded tremendous growth over the years, and even during the recession, the industry continued to expand. In 2010 July, the amount spent overseas visitors was ?1.96b, which represented a 15.9% rise as compared to the 2009 value of ?1.69b. This shows how the industry has potential for growth. Therefore, hospitality industry contributes significantly to the economy and employs millions of people. Conference and banqueting is one of the fields under the hospitality industry. This field provides conferencing activities to several people including local residents to international tourists. Banqueting is currently a lucrative business especially with the growth of conferencing facilities. Banqueting refers to the act of serving food and beverage to a group of individuals eating together, for example, in cerebration or conference. It is a highly profitable venture, and as such, most facilities in the hospitality industry have incorporated it in their services. This report looks at the conference and banqueting industry in the United Kingdom by analyzing its size and scope, as well as elements that have impact or significant contribution in this industry. Size and Scope The hospitality industry is one of the fastest growing industries, and indeed, the largest in the world. In the UK, this industry makes up a significant part of the economy, with its over 50, 000 guest houses and hotels and an annual turnover of ? 50 billion. In addition, the industry employs over 1.7 million workforce (British Hospitality Association, 2008). This industry is large and wide, and ranks third among the top sectors that provide employment. The industry is diverse due to ownership, innovation, grading system and classification, leisure facilities, level of service and future trends. Narrowing down, the conference and banqueting industry contributes ? 18.8 billion to the economy of UK according to the UK Events Market Trends Survey results. The business prospect of this industry increases annually, thus, it has attracted many investors especially during the preparation for the 2012 Olympics. Currently, the industry does not only provide meeting and food services, but there are additional services such as shops, nightclubs, hair and beauty salons, internet, gymnasium, shops, and laundry services. Conferencing services are mostly for business people whom after the meetings would prefer to have a little leisure and relaxation. Thus, the conference and banqueting industry has included the mentioned services to ensure that the guests do not leave the premises to go and look for leisure activities elsewhere. Research reveals that most hotels have special facilities in built for conference and banqueting events, as it has emerged a very profitable business area. An example of hotel or hospitality provider that has excelled in the area of conference and banqueting is the Villa Park or Aston Villa. The hotel that offers hospitality and events services emerged the best in the category of ‘Best UK Unusual Events’ during the prestigious M&IT Awards. Apart from excellent services, Villa Park is located centrally less than two miles from the M6, and offers spacious free car parking spaces, which makes it a perfect venue to host events. Another example of facility that offers good conference and banqueting services is The Royal Over-Seas League, which is a Private Members’ club that offers unique services for all kinds of occasions. Referred to as ROSL in short, the facility has eclectic collection of events and meeting rooms, as well as styles and designs that offers exquisite views of various places. Factors that have shaped the conference and banqueting industry The hospitality industry is one of the world’s largest and fastest growing sectors. Conference and banqueting industry is one of the newest ventures that are giving the industry huge growths in the recent years. Conference and banqueting industry entails organizing events complete with main meal courses and desserts. This industry serves purposes such as ceremonies, charitable gatherings, small meetings, seminars, corporate gatherings, family occasions, weddings, or celebrations. The growth and development of this industry has been shaped by several factors; political, economic, social-cultural, environmental and technological. Social-cultural factors Demographic patterns- The trend in population in the world and especially in Western Europe has been marked with rising percentage of older people (Confederation of Tourism and Hospitality (CTH) 2010). Consequently, conference and banqueting industries are adapting to the needs for this elderly population. The developments include the adoption of ramps for wheelchairs as well as separate dining times and activities. Location- Conference facilities have a history of being positioned in city centres, next to airports, and near tourists’ attractions. However more recently consumers (notably business persons) have turned to demand facilities in more relaxing locations and with activities such as golf courses and spas that generally require more land. This has led to increase in conference facilities away from the busy cities. Banqueting facilities are also in greater demands away from the noisy cities for activities such as weddings. Total Quality Management- Competition in the conference and banqueting industries has seen a change in consumers’ demands. Consumers generally ask to be granted quality for their money and expect technological items in conferencing rooms such as flat televisions and internet access. Many providers of the conference and banqueting services providers feel have had to raise their standards to win customers who increased expectations and perceptions of quality. It has therefore been necessary that hotels set quality standards such as TQM which ensures that all operations have established standards of quality as well as procedures to ensure that the set standards are met (CTH2010). Technological Factors Technology has played a major role in how people access conference and banqueting services. This has been attributed to by increasingly competitive market vis-a –vis development in ICT. Hotels and hospitality organizations are looking into ways in which they can offer a faster, high quality services and increase profits. Customers can now book for conference and banquet venues and facilities 24/7 from the internet. Most providers therefore need an online presence (Business and Technology Education Council (BTEC) 2010). Specific technological advances that have shaped the industry include: Computer Reservation Systems (CRS) - The CRS was developed in the 1990s in as a tool “to offer a global means of travel product distribution including the element of accommodation” (Knowles 1994 p. 211 Cited in CTH2010). This was an integration between airlines, visitors attractions and reservations and through it customers would be would have rooms already booked for them as they depart into a destined venue of conference. Property Management System (PMS)- This system offers acts as a channel through which a hotel or any other conference service provider can store important information about guests such as requests, frequency of visits, preferences of meals and so on. The PMS also enables communication between the different departments in an organization. Environmental Factors Environmental Awareness- There has been a growing environmental awareness which has led development of hotels and conference facilities targeting consumers who care about the environment. The entire operations of such facilities are environmentally-caring. Recycling- Environmental regulations are increasingly requiring that companies reduce their negative impacts on the environment; this has been the trend even in the conference and banqueting industry. Companies in this industry therefore have to conform to set guidelines regarding environmental consciousness. The European Union for instance has an 'eco-audit' to enable businesses to access how green they are (CTH2010). One of the initiatives towards environmental friendly conformation is recycling and use of recycled products. Political Factors Globalization- The Worldwide Hotel Activity, 2007 reports a huge growth of “global brands” in hospitality industry (Cited in CTH2010). This is directly linked with globalization trend and more relaxed entry of companies into foreign markets enabling multinational companies for instance Marriot and Hilton to open hotels all over the world. Environmental laws- New laws and regulations in several parts of the world have required that hotels modify their design of buildings, not to build in particular environmentally-sensitive areas and adopt environmentally-friendly ways of disposing wastes. Political Stability- Political stability is essential for the growth of any business and especially so for conference and banqueting industry. Groups of people or individuals looking for the places to hold conferences and parties consider security as one of their key incentive. Consequently growth of hotels and conference facilities has been remarkable only in countries with fairly stable political environment. The United Kingdom for instance is has recorded one of the fastest growing trends of the entire hospitality industry which can be attributed to its history of political stability. Political stability further allows for imports of food products from producing countries with surety of no trade legislation shake up due to changes in political environment (BTEC 2010). Economic Environment The conference and banqueting services are severely impacted by economic recessions or periods of slow economic growth. During such times people lack much disposable income as compared to periods of economic booms. The conference and banqueting industries are hit most by economic recessions as people consider such services as luxurious as opposed to essential. It is also becoming increasingly easier for people to travel; especially air travel. This coupled with increasing wealth and investment in some countries for instance China, India and some Arab countries makes tourism an attractive proposition for economic growth (CTH 2010). The conference and banqueting in such countries have been on a remarkable growth paths. Reference List Business and Technology Education Council (BTEC) 2010 , Exploring the Hospitality Industry, Viewed December 13 2013, http://www.pearsonschoolsandfecolleges.co.uk/FEAndVocational/HospitalityAndCatering/BTEC/BTECLevel2Hospitality/Samples/StudentBookSamplePages/BTECLevel2FirstHospitalityChapter3DRAFT.pdf British Hospitality Association, 2008. British Hospitality: Trends and Statistics. s.l.:s.n. Confederation of Tourism and Hospitality (CTH) 2010, The Global Hospitality Industry, Viewed December 13 2013, http://ncba.ie/student_and_teacher_resources_files/The_Global_Hospitality_Industry.pdf Read More