This perhaps represents a higher propensity or ability to support a permanent workforce in larger hotels that is able to supply a degree of flexibility through part-time employment rather than adopting a “pruning’ strategy more appropriate to smaller, leisure hotels.) In addition, formality of communication and consultation increase with size of establishment (perhaps unsurprising given the likely complexity of employment structures and, therefore, communicational channels in medium to large hotels). The survey suggested, therefore, that there exists a “crude” two-tier industry structure in the UK hotel sector. While much of the small hotel sector typified many of the “black hole” characteristics of the industry, some larger hotels appeared to apply greater formality to HRM. However, the extent of formality was also highly contingent on product and labour market context. The survey suggested that formal employee relations practices were more likely to be found in hotels located in urban centres serving the stable, commercial market rather than those hotels catering for the more unpredictable tourist trade. Hoque (1999), in a study of HR practice in large and medium hotels, divided establishments into three categories in terms of business strategy: those focusing on cost-minimisation or price competition, those focusing primarily on quality enhancement and those with an ambiguous approach to business strategy. Much of the survey sample appears to adopt a cost minimisation approach or, at best, an ambiguous strategy trying to balance the need for strict control over labour costs and the need for standards to be maintained. There was also evidence, however, to suggest that among larger hotels there may be evidence of hotels adopting competitive strategy of quality enhancement and with it a more formalised system of HRM.