Hospitality sector is one of the main aspects of tertiary and service industry. It is the one in which no products are produced; it is nonphysical people can only take or cognizance the experience but can not own a service (Definintion of Tourism (UNWTO Definition of Tourism) / What Is Tourism ?, 2018). There are some booming sectors which are part of the service industry such as IT and software sector, Aviation industries and many other. One of the significant is hospitality as it considers large number of small sector like talent management, Restaurants, event management, transportation, Theme parks and so on. In this assignment, given member firm is PKF hotelexperts, it is a internationally established market leader in the field of leisure & tourism and hotel consulting (Ashworth and Page, 2011). This report is based on “Hospitality provision in travel and tourism sector” which show on the aspects of the responsibility of the hospitality industry and the interrelationships between wider travel and tourism organisations and hospitality. Then, the evaluation of the integration implication to the hospitality business are analysed in this project. Rational for a project and development plan for a hospitality industry which includes human resource and operational allocation, it is also analysed in this project.
1.1 Interrelationships between hospitality and wider travel and tourism businesses
Interrelationships between hospitality and travel & tourism sector
Date- 5 May, 2018
Hospitality industry: It is identify as a broad category and part of service sector that includes event planning, transportation, lodging, cruise line, theme parts and many other. There are different hospitality industry such as hotels, restaurants, bars and pubs and many other whose are providing one of the best services to the travel and tourism sector in a systematic manner.
Travel and tourism sector: This sector includes different services such as tourism, travel, event and conferences, accommodation, visitor attraction and passenger transport. It is one of the growing sector worldwide which provide different kind of services to the tourist with motive to satisfy its basic needs and wants.
Role of Hospitality Sector in Tourism Industry: Hospitality sector play one of the main and significant role in the Travel & tourism sector in UK. Main role of this sector is to provide large number of the tourism services to the visitors with motive to maximise customer base in travel industry. In addition, they provide wider rang of services to the travellers such as entertainment, food facility, accommodation, entertainment and many other beneficial services. One of the best example of hospitality sector is hotel, amusement park, restaurant, these are render different services such as theme parties, parks, pub, disco, dinner and son on which are being given at a precious prices. It help them in attracting maximum number of potential visitors and also they satisfy them to visit again effectively.
Interrelationships between hospitality and travel and tourism business: Hospitality industry are considered to be the most essential service providers to the travel and tourism business. As per the leisure of for company, an individual are spending their more important and considerable time period at hospitality industry particularly when it is thoughtful to be of a luxuriousness condition. Thus, both sector and industry are interconnected for example: large number of the persons wants and needs to have an interesting tour at different geographical areas or destinations. For this they agreement the specific travel and tourism business of United Kingdom enterprise which offer them the grate holiday package with entire facilities like food, accommodation and quality services. There are different points which are show the interconnection between travel and tourism sector and hospitality industry are determined as below:
Package Holidays: It is identify as one of the best function of hospitality industry. Hotels in the UK that have their comprehension in tour package which is based on its price. When visitor is prefer for a budget package of tour, then that individual not be demanding accommodation service of 1 star to 2 star standard, and practically talking, the accommodation services is much to be 5 star status. Thus, these are shown that hospitality and travel and tourism business are interrelated with each other. Both organisations have common interest is to gain maximum amount of capital by satisfying basic needs and wants of customers.
Aviation: It is another important part that define the interrelationship between travel and tourism business and hospitality industry. Success and development of the hospitality sector is entirely based on the accessibility of accommodations. In this role of Airlines industry is t provide beverages as well as food to the travellers who are travelling for particular destination in UK. Thus, it is defined that travel and tourism sector is one of the major part of the hospitality industry.
Business travel: The business person specially prefer the hotels for their living because hotel is capable of rendering the important amenities or comfort for working in an easy manner. In this they are searching best hotels having different facilities like accessibility or Wifi cable, meeting rooms and many other facilities. The growing places like China and India are becoming enormously famous destinations or places for business travel. So it turn in the success and development of hospitality industry. So that in the hospitality sector, travel and tourism business play vital role in enhancing growth and development in marketplace.
Conferences and exhibitions: It's one of the significant and important part of the international as well as national tourism industry. It is one of the best way for attracting large number of the tourist for particular destination. In this travel and tourism sector organise exhibitions and conferences for their target visitors for motive to introducing their services to them. So that it is beneficial for the growth and development of hospitality industry. Thus, it identify both are interrelated with each other and have same motive to accomplishing long term goals and objectives in an effective and efficient manner.
Visitor attractions: It is the role and responsibility of the travel and tourism sector is to provide better facilities to the visitors for attracting more travellers in the hospitality industry. In this PKF hotelexperts provide different facilities such as manmade structures, it includes museums as well as theme park. Another visitor attractions are natural places like Natural parks and many other. For example: one of the popular attractions is Disneyland which is situated in China, Japan, France and United states.
2.1 Implications of integration to the hospitality industry
Integration is essential and beneficial to the hospitality industry to work with each other via sharing their consumers as well as resources. It is one of the growing industry worldwide which have to provide different services to the travel and tourism sector in an effective and efficient manner (Barros, Butler and Correia, 2010). Due to integration, both type of industries are running their business operations and achieve competitive edge as compare to its challenges. Integration is identify as an effective system which is require by each and every organisation with motive to provide better tourism service to visitors. With the help of this system an organisation easily maintain their goodwill and reputation in marketplace. Further, it will also support to increase their sales and revenues in given time duration. There are mainly two types of integration such as vertical and horizontal which are determined as below:
Vertical Integration: When an enterprise buys another organisation and its suppliers is distribution chain, it is known as vertical integration. It is one of the best method for the hospitality industry to minimise their operating cost and increase profitability ratio (Clift and Page, 2015). As per the case scenario, there are different hotels are given but PKF hotelexperts prefer Marriott International hotel. In this cause, they buys its suppliers and another business is distribution channel. It is beneficial for them to reduce their operating cost and maximise competitive edge or benefit in an effective and efficient manner. Mainly, such type of integration is identified as lateral, forward and backward integration. For instance: Marston's Plcs and Marriott International Hotel both can integrate so it is essential and beneficial to handle different kind of travelling services in an effective and systematic manner. Another merger option is lateral integration which is essential for the enterprise to achieve long term objectives and targets. So that they can accomplish their predetermined goals in an effective and systematic manner.
Horizontal Iteration: It is another important part of the integration which support the travel and tourism industry to gain large number of the competitive edge in an effective and systematic manner. It is apply when enterprise, from who various sectors come with each other to form an innovative bigger firm is to called horizontal integration (Frey and George, 2010). This outputs is maximising the customer base, advantages from economies and eventually increasing the profitability. In UK, there are different hotels which are functioning and performing in same industry. For example: Marston's Plcs and Marriott International hotel both business are rendering same kind of services or product to their target audience. But after integrating, both are give creative and effective facility as per the demands and requirement of visitors. Marriott Internation hotel is located in United Kingdom which is responsible and liable for controlling all services in an effective and proper manner. As per the market investigation, Marriott hotel is come up with new segment of market due to vertical integration. On the other hand, Horizontal integration is beneficial in enhancing resources as well as capabilities.
2.2 Integration has affected a hospitality business
An integration of each and every industry can be effected through various issues. It is essential for the travel and tourism sector is to understand regarding market trends. Due to dynamic environment, business need to develop integration systematically with aim to identify basic needs and wants of the visitors related to tourism place, food, accommodation and many other services. It is also important for the hotel to maximise their sales by providing effective services and products to the customers (Gretzel and et. al., 2015). Further it will support hotel manager in running business operation and activities in successful manner.
Impacts of integration: There are different effects on integration on hotel are determined as below:
Quality: It is identify as a major role and duty of hotel manager is to provide quality services and products to the visitors. So it can move with achievement of long term goals and objectives in limited time period. In this Marriott Internation hotel tries to apply digitalisation and innovation in their business operation which support to easily attract large number of clients towards them. It is also impacted on hotel in positive way to gain profitability and effectiveness in an effective way. In this Marriott International hotel organise research program with motive to understand regarding the perception and needs of visitors so that it can supply effective services in accordance them.
Economy of scale: Integration is effected on the business operation and activities. In this operation cost of the Marriott Internation hotel can be reduced at essential way (Guttentag, 2015). It is the role and responsibility of company is to provide better services to the customers which is essential for the m to gain competitive edge and develop growth and success of economy scale.
Standardization: It is identify as a complex approach that take many time, particularly in a travel and tourism sector that cover an essential number of variables. It is also known as complicated activity for making entire events in an easy manner. In hospitality industry, standardization render more benefits to travellers for visiting purpose (Guttentag, 2015). It is required by the organisation to with aim to maintain long lasting and strong relationship with clients. It also help them to retain customer loyalty in the organisation in long duration.
Integration has impacted on the Marriott Internation hotel and its functions in different ways which are identified as below:
Integration of Marriott Internation hotel and Marston's Plcs, there is need to similar entire costs which are given by the hotels to its target customers in a systematic manner. For example: If business organisation charged various prices as compared to another hotels whose are located in UK. So it will retain goodwill and image of the company in marketplace. When two hotels are merge with together they can effects over small business or hotels. In this, large number of person are more impacted in order to providing better services at accurate place. It is also beneficial and important economy of scale due to this, operating cost reduced and profitability level is maximised. With the assist of this, Marriott International hotel can be minimised their operating expenses and costs as well as increased profit in an effective and efficient manner. Another impact of integration of hotel is to create monopoly condition in marketplace which support in decreasing challengers level (Hall, 2010). It is also beneficial
Implication of the integration: In order to implement both integration in hospitality sector, there are different points which are determined as below:
Significance of pricing policies and branding: In order to develop integration in business operation and activities, it is the role and responsibility of hotel manager is to set an effective pricing strategy which help them to attract maximum number of the visitors. Vertical integration support the business entity in order to improve their image and branding position in marketplace.
Control and manipulation of the market: It is identify the role and duty of manager is to control entire activities and functions of the company in limited time period. Further, it will help to maximise sales and revenues of the hotel (Heung, Kucukusta and Song, 2010). It is also significant for Marriott International hotel to develop their strong image and goodwill in market.
3.1 Rationale for selected project justifying the judgement linked to target market
The rational creation for hospitality industry can be sized by providing a specific example. One of the main instance of a project which will show this an accurate manner are determine as below:
Idea: Main plan of the project is to establish new restaurant in United Kingdom (Hopeniene, Railiene and Kazlauskiene, 2015). It is one of the best idea for attracting large number of the tourist in the organisation which support to maximise profitability and effectiveness of new venture in an effective and efficient manner.
Market research: It is the role and duty of marketing manager is to conduct research and identify basic needs and wants of customers regarding destination, food, services and many other. This research help them to easily satisfy basic wants and demands of visitors in an effective and efficient manner. In this researcher would be selected sample size is 1200 visitors who would be travelling the United Kingdom tourist places or destinations.
Target Market: Target market of the new venture is the middle and upper class unites who would able to supply the high package (Hovhannisyan and Keller, 2015). It will consider those people from each and every age group but particularly those who aspect value for money as well as affordable deals.
Target size and locations of the new venture: In this new venture target geographical destination will be the United Kingdom tourist places where bother middle and upper class units. Business size would be approx 120 rooms with entire facilities such as 50 AC and rest of the without AC rooms. It will also constitute of different facilities which is provide by the hotel such as lording and food.
Investment: It is another important part in order to implement project in an effective and efficient manner. In this new venture arrange sufficient amount of money from own resources and bank loan. In this company should offer different services and products to the visitors such as 50 AC and 50 Non AC room, best quality of food, Tourist guides, transportation facilities and many other.
Licensing: It is identify as a legal process which is follow by the each and every travel and tourism sector for expanding their business operation at international and national level (Hudson and Thal, 2013). It is highly required and needed by the business for expanding business operation.
3.2 Operational requirements of the business’ organisational structure in relation to human resource allocation
Business plan is identify as a formal statement which is prepare by the each and every organisation. This plan includes entire information and data related to opening new venture in new place in an effective and systematic manner. Above discus project plan includes different process which are determine as below:
Process 1: Development: Development stage of the new venture is identify above which is sufficient for the organisation to easily establish an effective business operation in Hotel industry. This plan includes different stages which are determine as below:
Idea: Development plan is based on an effective ideas and plan which assist to maximise customer base in the organisation. Further an innovative idea assist the business venture to attract large number of visitors for spending their time in such hotel (Jaafar and et. al., 2011).
Market research: In this they conduct research event which help to identify basic wants and requirement of tourist towards hotel services and products.
Target market: It is another part of the new venture development which is essential for the organisation to target audience. In this they mainly targeted upper and middle class families who easily affords this.
Target location and business size: They target geographical destination in UK and business size is 120 rooms with different facilities about AC and Non AC room.
Funding: It is one of the main part of the new venture in order to establish innovative organisation nationally and internationally (Law and et. al., 2015). In this they arrange proper amount of money from bank and many other sources.
Product and Service: In this they hotel provide different services and products to the upper and middle class families.
Licensing: It is legal agreement which is follow by all new business who are expanding their new business operation.
Process 2: Design: It is identify the business structure. In this different process which are determine as below:
Ambience: As per the current trends of market, there is a requirement is to give decorated and attractive look in the form to disport the judgement so clients for accommodation (Pulina, Detotto and Paba, 2010). There is highly requirement of administrations to use multicolour lights and different other decorative aspects.
Culture: It is another important part of the new venture which is beneficial for them to gain competitive edge in a systematic manner. It is determine internal factor of the organisation who are working in the business such as managers, staff members and many other.
Interiors and Exteriors: Under this, Interiors design supports to attract large number of the clients in continues basis. On the other hand exterior design assist to achieve long term goals and objectives. Both types of designs should well attractive as well as furnished.
Functional areas: Main focus of the new venture is to provide necessary information and data to the customers. In this organisation use online booking and payment service which help them to maximise their functionality effectively.
Sustainability: It is identify as one of the essential part for maximising sales and revenues by providing quality services to its actual and potential clients at new place (Medlik, 2012).
Process 3: Operation: It is another part of developing new business in other areas in an effective and systematic manner. This are cover different aspects which are determined as below:
Staffing by Functional areas: In this role of the Human resource manager is to hire talented and knowledgeable candidates who can easily deals with customers.
Specialist qualification: it is another process of operation area which is important for the company to identify qualification and intelligence of candidates regarding accomplishing long term objectives and goals of company.
Diversity of cultural and different ways to deal with conflict: It defines, visitors can come from various nations for motive of travelling in UK destination. So, there is requirement to prosecute employees to cooperative about attracting each and every visitors (Mok, Sparks and Kadampully, 2013). In this all staff members should try to solve conflict and many other issues.
Recruitment procedures and policies: It is the role of HR manager is to follow different policies and regulation which help to expand their business at international.
Promotional activities: It is one of the best tool for promoting business operations and its food and services in marketplace and to the customers. In this they apply different promotional tools such as advertisement, publicity and many other (Murphy, 2013).
Pricing: It also play vital role in setting best price of the services and products. So in this responsibility of manager is fix reasonable price which attract maximum number of customers.
From the above mentioned report, it can be concluded that hospitality provision is essential and important part for attracting large number of customers towards travel and tourism services. There are different role of hospitality industry and their interrelation with travel and tourism sector support to maximise their sales and revenues in a systematic manner. There are mainly two types of integration such as vertical and horizontal which is used by the hotel with motive to increase customer base in the organisation. Implementation and development of new venture or project support them to accomplish their long term goals and objectives in given time duration.
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