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Capacity of Hospitality Market



Hospitality market in the UK constitutes a broad and varied industry. It includes single person organizations as well as worldwide corporations. There are operations of different size in UK hospitality market (Greene, 2003). These are involved in providing food, beverage and accommodation services. Hotels, motels, resorts, restaurants, pubs, night clubs, cafes etc. together form the hospitality market of UK. After the London Olympics 2012 the entire hospitality market of UK was affected. Country has showcased the image of London city in terms of hospitality, travel and tourist destinations, culture and many other events. Organizing of such supreme event was not only big challenge of United Kingdom but also has the opportunity to attract the millions of tourists and visitors. In current report capacity of UK hospitality market after London Olympics was evaluated and assessed. This study reveals about competency of hospitality industry of country. It details about the overview of entire industry considering the case of Hilton Liverpool hotel.

Aim and Objectives

Aim: To understand and evaluate capacity of UK hospitality market after London Olympics. A case study of Hilton Liverpool hotel


  • To assess the impact on hospitality market of UK after London Olympics.
  • To critically evaluate the capacity of UK hospitality market after London Olympics.
  • To analyze impact of Olympic Games on business of Hilton Liverpool hotel.


Understanding capacity of hospitality market

Hospitality market covers a broad category of fields within the service industry. This includes event planning, lodging, theme parks, cruise line, hotels, resorts, motels etc. it also comprises of the cafes, nightclubs, pubs and public houses, restaurants and bars. As per the views of Humphreys and Prokopowicz 2007, capacity is the capability of a market in terms of supporting the changes in demand. Capacity of hospitality market is concerned with the number of hotels, motels, resorts, cafes, night clubs, restaurants etc (Humphreys and Prokopowicz, 2007). The number of tourists that these places can hold is representative of their capacity. UK hospitality market consists of a spectrum of business across hotels, pubs and restaurants. It also includes travels and tourism, sport and leisure and gaming (Hospitality and leisure, 2014).

Dependent on consumer confidence and business sentiment there is increasing pressure on the hospitality market of the UK to deliver innovation, value and quality. As per the views of Pillay and Bass 2008, one of the key trends in the UK is related to expansion of the budget hotel sector (Pillay and Bass, 2008). Overall hotels sector of the UK has observed increase in room supply, especially in London. However, the main concern for the UK hospitality market is the easiness with which it will absorb the additional capacity.

Pullman and Rodgers 2010 assert that capacity of a hotel can be evaluated in terms of customers receiving good service without delays (Pullman and Rodgers, 2010). This especially implies for the pubs, restaurants and hotels of UK hospitality market. However, Chen, Kim and Kim, 2005 argue that while understanding the capacity of hotel, considerations must include time, labor, equipment and facility (Chen, Kim and Kim, 2005). The workforce that a particular hotel has to attend to the guests represents its capacity. Various equipments that are present in the rooms and other areas of a hotel also demonstrate the capability of a hotel to serve the guests. This implies, that an increase in the number of guests should be related in the form of increased capacity in terms of equipments for serving them in the best possible manner. Additional workforce showcases enhanced capacity of a hotel to attend to the tourist arriving at the destination. Hotels respond to the increased number of tourists by increasing their number of rooms. Additional rooms and suites are added. These add to the capacity of the hotel to entertain guests. More restaurant table are arranged which are capable of serving an additional number of people.

UK hospitality sector after London Olympics

Hospitality sector of UK is one of the major contributors in the growth and development of nation in terms of economy. From the last so many years the capacity of this market has increased and the major impact on this sector was seen after London Olympics of year 2012 (Pappas, 2014). Hospitality industry has been found to be influenced from the economic conditions of country which determines the expenditure of people on leisure and tourism activities. UK is one of the fastest growing industries in terms of leisure, hospitality, and travel and tourism sector. London Olympics was one of the major achievements of country. Successful completion of this event has also facilitated the economy of the nation. Millions of visitors both domestic as well as overseas visitors has visited the country and it makes direct impact on the experience

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