Transformational and transactional leadership are distinct but not mutually exclusive processes. In an effort to clarify some of the consequences of these leadership styles, and their impact on the hospitality industry, the aim of the proposed study can best be summarised in three key objectives:
1. To compare the relationships between transformational and transactional leadership behaviour in the hotel industry;
2. To develop a better understanding of the unique factors in other organisational cultures that can be used by others to improve their own.
3. To show the importance of organisational culture and to link this to the theory of transformational and transactional leadership; This is the frist stage in the research and reviews all relevant secondary information, providing a critical insight into the important issues and themes of the topic. After the previous stage, this section provides the study, rationale and methods chosen, which questionnaires were used and the results obtained from primary resources. In order to establish four and five star hotels, the UK’s major organisation, the Automile Association (AA) Hotel Guide 2006 was used. The AA star rating is a classification used to make a quality assessment to asist guestions in their choice of hotels. The survey revealed is that transformational leadership is practised by large number of hotels which consider it to be an effective way of managing staff. There is considerable evidence in the literature to support the notion that leadership is an important casual factor of hotel organisation performance. In this research findings are limited to the London Hotels in questions. This review protvides it is important that transformational leadership needs to be practised for problem solving and organisational achievement. Therefore, good managers need to build up the necessary skills to enable them to change corporate leadership culture for organisational success, thereby increasing people’s organisational commitment.