It can be argued that the hospitality industry has transformed itself from a product-focused business to a customer-focused one and from a physical-asset intensive business to an experience-centric one. In order to understand the skills that are required by managers and employees in a hotel to perform better it is important to understand the concept of competencies. Competencies can be described as factors that improve the performance of individuals in jobs. According to the definition provided by Woodruffe (1993), competency provides provide the dimension against which people should be assessed for readiness or potential to move into jobs against which they should be appraised and upon which they should be developed. Skills has been defined as parameters that help in achieving environmental goals by maximizing the certainty of achievement by minimizing cost and time spent. In the past three decades, a large number of researchers has focused on the importance of skills and competencies required to run hotels. Skills and competencies are important for both managers and graduates who chose to enter the hospitality industry. The ability to take initiative has been identified as one of the biggest skills needed to run hotels on the part of managers. This is because initiative can be identified as a parameter that is able to gain support and motivation from others. Hotels are visited by customers from all over the world and managers needs to guarantee satisfaction for the guests. In order to manage the guests and provide them proper satisfaction managers need to have three major types of skills namely conceptual skills, technical skills, and human skills. The requirement of skills is further dependent on the hierarchy of the organization and the type of work of the employees. This implies the skills required by a frontline staff will be considerably different from the staff working in the kitchen or housekeeping.