Business Strategy of Tourism and Hospitality Executive Summary

TABLE OF CONTENTS Executive Summary2 INTRODUCTION 1 BUSINESS DEFINITION 1 VISION, MISSION, GOAL AND OBJECTIVES 2 SWOT ANALYSIS:2 STAKEHOLDER 5 GENERIC CORPORATE STRATEGY6 RISKS AND KEYS ISSUES TO BE ADDRESSED8 CONCLUSION 10 REFERENCES 11 INTRODUCTION Hospitality refers to relationship process between the guest and the host. Thomas cook and sons company is emerged for tourism management first time in Italy. The

Business Strategies of Tourism and
Hospitality

Executive Summary
Business strategy is of all plans that helps the firm in decision making. Study contains swot
analyses of Thomas cook which is the outbound tour operator. It explains pestle analyse of
company.

TABLE OF CONTENTS
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
BUSINESS DEFINITION...............................................................................................................1
VISION, MISSION, GOAL AND OBJECTIVES..........................................................................2
SWOT ANALYSIS:........................................................................................................................2
STAKEHOLDER............................................................................................................................5
GENERIC CORPORATE STRATEGY..........................................................................................6
RISKS AND KEYS ISSUES TO BE ADDRESSED......................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality refers to relationship process between the guest and the host. In other words
hospitality refers to the practice of being hospitable which is the entertainment and reception of
strangers, visitors or guests with liberality. The purpose of hospitality is to serve its guests
profitably for delivering a lasting experience. Present study is based on Thomas Cook. Thomas
Cook group is a British global travel company which formed on 19 June 2007 with a merger.
Thomas cook includes a number of tour operators like airtours, cook airlines, Condor and
Thomas cook airlines. Estimated revenue generated by Thomas Cook £9,584 million in 2018.
this project includes business strategy for hospitality business. The structure of the business
strategy plan includes executive summary and Business definition. Vision, Mission, Goals and
objectives of business is being discussed in the project. Project includes SWOT analysis,
stakeholders, generic corporate strategy. Lastly, report contains risk and key issues and
conclusion.
BUSINESS DEFINITION
Thomas cook and sons company is emerged for tourism management first time in Italy. The company
provides facility to people for the comfortable travel with hospitality to its customer(Kotler and et.al.,
2017).The company was the first to bring circular tickets in market of Italy, circular tickets include hotel
coupons, travel tickets, etc. the tickets were used to exchange the services that can be the hotelier, using train
for travelling, at banks, lodging and meals etc. Thomas cook helped Italian economy to increase in the tourism
sector which increased the revenue from tourists in Italian economy. Coupon system helped people to
exchange their currency with easiness and keeping stability in prices(Minazzi, 2015) .Thomas cook
company increasing its demand globally and locating its offices in different countries some countries are
Australia, Auckland, new Zealand, etc. The company also provides traveller kit to its customers that can be
used by customers in emergencies it includes the guide book which give help to know the place with details
and history of that places visited by customers, luggages are being provided, telescopes and footwear many
more new items are been added in the travel accessories by the company(Gursoy and Sandstrom,
2016).Thomas cook company has expended its business not only in the fields of travel management but also
in the fields of hospitality firms. The company facilitate its customers by giving leisure travel, travel insurance,
travel management company for customers to inquire, foreign exchange Visa and passport, and e-business are
also operated by the company. Thomas Cook made more network to connect with the hotels, ticketing of
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flight, trains, booking of drivers for picking up from airport to hotel and back to airport after end of trip, meals
that provided by the hotels it includes breakfast, lunch and dinner, facilities relates to hotel rooms according to
customer demands facilitated. Thomas cook company increase the social values and culture among people(Lu
and Stepchenkova, 2015).The company is increasing its reputation day by day in international as well as in
domestic market. With increment in tourism hospitality the company planned to grow excursion trips for
people they can take interest in travelling with adventure. Excursion attracted middle class people more and
increased their moral in travelling for Italians. Through Thomas cook company the Italian people and
government felt the place where they are living is tourisms spot for other people.
VISION, MISSION, GOAL AND OBJECTIVES
Vision : The company vision describes about exploring the new places and inspire people to see
the world. Group vision is to satisfy the customers by providing the best facilities to the customer
and happy customers will come again when they will be satisfied(Altinay, Paraskevas and Jang,
2015).
Mission: Mission of the company is to provided services from world class people.
Goal: The company aims to achieve big goal that is to become market leader globally in field of
tourism and hospitality.
Objectives: The company objective are to achieved wider market and increases services,
promoting the services making new customer by attracting them towards tourism. Giving
information about services to customers and increases its market share(Tsai and et.al., 2015).
SWOT ANALYSIS:
STRENGTHS:
 Brand Image: The company has increased its reputation and brand image all over world.
 Marketing strategies: Marketing strategy are successful in growth and development of the
company.
 Advertisement:The influence of strong image in market due to it promotional tools like
advertisement through news papers, online marketing, printing pellets, etc.
 Employees: The company crossed over 20000+ employees and have skilled workforce.
The company gives training to its employee and learning programs. Thomas cook
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company is spending more resources on it HRM so that the employee can be motivated
and give their best in the work(Moro and Rita, 2018).
 Customer satisfaction: Satisfied customers are increasing. Thomas cook company has
built a relationship with its customers able to develop higher satisfaction level this has
happened due to the quality and brand image of the company.
 Strong network: Network is becoming stronger day by day it helps to increase its
potential and strong network for the company. The company is able to explore market.
WEAKNESSES:
 Profitability:The expected profitability ratio is below average of Thomas cook company
and its net contributing is average.
 Less technology:The company invests less in technological sector to improve quickly in
fields of tour management. Due to less investment in technology the company is not able
to integrate its facility abroad. Which decreases its working towards its vision.
 Financial planning:Planing of finance is not done properly by the company. Assets and
liquidity ratio are not proportionate in right way. The company does not plan to use its
cash in more efficient manner(Inanc–Demir and Kozak, 2019).
 Market essential: Marketing is essential tool it can be used in better way to attract
customers and selling points are not located in more locality.
OPPORTUNITIES:
 Competition: Through increase in competition in market the company will increase the
opportunities to grow itself by becoming competitive from other companies.
 New Trends:By introducing new trends in market the company attracts consumers toward
the tourism sector. Thomas cook company builds new ways to generate the profit with
the help of making changes in its services.
 Flexible government: company can enter in new market with help of the government
policies, it can enter in the market of other country. Government helps in free trade gives
the chance to enter in new market(Baum and et.al., 2016).
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 Promotional activities:The company has opportunity to increase the promotional
activities and spread knowledge to consumer related to tourisms sector. In increasing
promotional activity the company can create more customers in market.
 Transportation : by reducing the cost of transportation in travelling like providing facility
to use ship, flights, etc. In all this Thomas cook company can reduce its cost which can
help the company to reduce its expenses.
THREATS:
 Consumer behaviour:Due to change in consumers buying habit the consumer deals more
on online rather than visiting main office which decreases to disclose all the terms and
conditions related to trips.
 Local agents:The local agents make deals for the company which charges high rate of
commission from the customers. Local agents charges commission from the customers in
name of the company which creates threat for company in name of image down and
repels customers.
 Increment in Pay: Increasing the demand for the pay to the employee increases burden
on the company. When company has stable profits the demand of employees increases
for higher payment of salary to employees(Moro and Rita, 2018).
 Service supply: The company is not able to supply the services on the regular basis it
decreases the demand of consumers towards the product. The company developed many
services which demand more or less in the market due to which the sales of the company
also decreases.
 Imitation: Imitating the company services by other company decreases the demand for
the Thomas cook company. The company reputation is been decreasing due to the
services being provided by the company are copied in other company with the cheapest
stakeholder price given for the services by other company.
 Technological updation: Adoption of new technology by other competitor firms threats
the company to grow with improving technology. Through technological updation in
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other company the company looses its focus towards its long term future goals(Lu and
Stepchenkova, 2015).
STAKEHOLDER
A stakeholder is either an individual or a group or an organisation who is involved in
project or who has unconditional interest in its success and failure. They have a negative or a
positive influence on the project or assignment. It is a process of beginning the healthy
relationship as they help during planning and execution of the project, thus stakeholders should
understand about the project functioning, including project scope and goals
There are five major types of the stakeholders. Such as project manager, project
team ,functional team, sponsors, customers.
Stakeholders has both internal as well external classification. Internal stakeholders are
those which affects the project directly, such as employees while external stakeholders are not
included as a part of the business for example vendors, suppliers, but they have an interest on the
outcomes of the business.
 Primary and secondary stake holders- primary stakeholders are more interested
in the success of a project because they are the one who are directly impacted by
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Illustration 1: types of stakeholder

the consequences or the outcome. Primary stakeholders are project managers and
also some team members.
 Managers- they are accountable for the whole success and the vision of the
project. They have to provide the feedback and also decisions regarding the
implementation of the project. Managers should have the clear understanding with
respect to the resources and finance which fund the projects and also the scope,
scheduled and the requirement of the resources which are needed for the project.
The success dependency of the project is on the manager's leadership as well as
the support. It helps to determine the cost overruns and give alternatives in order
to keep the project in budget(Tsai and et.al., 2015).
 Investors-travel and tourism information is beneficial for the both potential as
well the actual investors. Actual investors' are those which maintaining the
records the funds which are used by the mangers for the upcoming growth to earn
more money and profit. It is benefit for the potential investors as well for the
mangers to make the decision that the company is appropriate for the investment
or not.
 Owners- owners of the company are those which need to know the exact and
accurate information because they are one who invest business and to earn profits.
They are very well aware of the position of the company like what the company is
earned and missed over the time. This information helps owners in making the
various decisions of the company.
 Employee-Employee are those who want to know the stability. Here the potential
of the employee in providing remuneration, employment and also the retirement
 Benefits. It is beneficial for the employees for making the decision in leaving the
organization or will continue it.
GENERIC CORPORATE STRATEGY
` it is used to determine the strategy of the organisation. Michael porter uses four strategies
that a company must choose in order to beat the competition. The four strategies are as follows:
Cost leadership- in cost leadership company sets their goal as the low cost producer.
Here are two options first choose the cost as low as possible or assure a larger market with
average prices, in both the cases the cost of the company seems to as low as possible. Those
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organisations used this strategy have substantial investment capital in terms of material, labour
and disposal.
Organisation that are succeeded in cost leadership have following strengths.
 Capital need for making a significant investment in production.
 Need of high level of expert in manufacturing process.
 Acquired high skills for the cost-efficient manufacturing.
 Cost-efficient distribution channel.
Differentiation- Here the organisation needs to be unique in terms of the product or
services. From this strategy organisation made their product more attractive and exclusive as
compare to the market competitors. This needs good research and development, innovation and
also the ability to deliver high quality. It is important to be adapt flexible market to beating the
market. Here organisation should be focused on the outside world and also the creative approach
Cost focus-In cost focus choose a target which has little competition, pursuing a focus
strategy have lower volumes and less bargaining power within their suppliers. Here to know the
dynamic wishes of the customers and also assure the cost remain low(Tsai and et.al., 2015).
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Illustration 2: porter strategies

Differentiation strategy- this strategy involves strong brand which is loyal to the
customers. It is very vital to assure that the quality of the product remains unique ,in order to stay
competitive in the market. The uniqueness of the product allows the organisation to the charged a
premium price and offers higher price while offering the new product. Because of the uniqueness
suppliers may be increase the product prices ans the organisation can go along the cost to its
customers who are not able to find the alternative products easily.
Organisation have following strengths that succeed in the differential strategy.
 Highly skilled and innovative team for the development of the product.
 Corporate and innovation for corporate reputation.
 strong sales team with the best communication skills
 Approach to leading scientific research(Lu and Stepchenkova, 2015).
RISKS AND KEYS ISSUES TO BE ADDRESSED
Hospitality industry is one of the fastest leading industry in the world. It has been
continuously improving the efficiency and the customer experience through its various
advancement. Meanwhile, they also brought some major issues that will affects the hotels and
other services.
Here the following management issues in the hospitality industry.
Continuous changing the expectation of customers-change in the time brought the
changed demand of the customers. The crucial purpose of the hospitality industry is to keep the
customers happy but keeping customers is not enough anymore. There is a need to fill a gap
between the perception as well the actual delight. So with the changing demands of the
customers is getting more difficult for hospitality industry to delighted them. Mangers of the
Thomas cook faced completely different positions like the new technological advancements and
the different behaviour of the customers(Moro and Rita, 2018). So with the help from the social
media and digital channels' hotel managers provide the delight the customer every time when
they walk in.
Constant technological changes and regular innovation-today the customer choose to
stay in the hotel where they get free Wi-Fi, led, USB port etc. today customers are more
technological person than earlier. They rely heavily on the technology. Here the innovation in the
hospitality industry needs to focus in the innovation which is driven by technology.
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Political and security challenges-this is one of the most vital issues of the hospitality
industry. The terrorism is the macro issue facing all over the world today. it has changed that hoe
people travel and where they travel. Managers of the Thomas cook tasked with the duty of
assuring the proper surveillance systems that are installed as well as maintained throughout so
that the customers feel more secure and comfortable(Ivanov, Webster and Berezina, 2017). To
deal with the security ,the managers of the Thomas cook can trust on the high technological
gadgets and software which is more costly to acquire and maintain. There are also lots of macro
issues and security threats like data theft from terrorism. Hotel managers needs to anticipate and
study potential threats and also ways to minimize it in a difficult situation.
Shortage of the skilled labours, employees turnover and also irregular working
hours- this is a major challenges faced by the hospitality industry. Here the staff turnover is the
biggest management issue as the increased competition has added flames to the issue of the
skilled labour shortage in the hospitality industry. Here customers expect more nowadays so
employees forced to deal with long as well as irregular working hours. Another important state
of affairs which results into the maximum staff retention is to provide training sessions .
Better training provide the development of the employees and helps to keep them
motivated for the job point of view. It helps to decrease the issues and also increase the skilled
labours. Managers also provide some incentives to the employees like discounted or free health
check-up so they keep them regular in the job. Thus, it is a responsibility of the manger to assure
that turnover is low and every single employee is well taken care.
` seasonality of the hospitality industry- peak seasons brings enormous business
simultaneously it also brings the undue stress to the management and its staff. As managers are
engaged with responsibility of maintaining the ongoing changes while booking and also the
pricing ,which can be discouraging for the mangers and employees. Everyone wants to make
money during the season. So more staff members ,and well resources are needed during the peak
seasons and also when a drop heavily of lean season there is difficulty to assures the
profitability(Tung and Law, 2017).innovation ,diversification and also the effective management
leads to hold the key while managing the issue of the seasonality within the hospitality sector.
Thomas cook managers can faced the above issues regarding due the seasonality.
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CONCLUSION
After going through this report, it can be concluded that a business strategy plays a major
role in hospitality industry. We have learned about stakeholders, that there are five major
stakeholders such as project manager, project team, functional team, sponsors and customers.
There are primary and secondary stakeholders, where primary includes managers and also some
team members. In this project, we have studied generic corporate strategy which is used to
determine the strategy of the organisation. Generic corporate strategy includes four strategies
that are cost leadership, differentiation, cost focus and differentiation strategy. Lastly we have
determined risks and key issues of hospitality industry which were continuous changing
expectations of customers, constant technological changes and regular innovation, political and
security challenges and shortage of the skilled labours, employees turnover and also irregular
working hours.
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REFERENCES
Books and Journals
Altinay, L., Paraskevas, A. and Jang, S.S., 2015. Planning research in hospitality and tourism.
Routledge.
Baum,T and et.al., 2016. Sustainability and the tourism and hospitality workforce: A thematic
analysis. Sustainability. 8(8). p.809.
Gursoy, D. and Sandstrom, J.K., 2016. An updated ranking of hospitality and tourism
journals. Journal of Hospitality & Tourism Research. 40(1). pp.3-18.
Inanc–Demir, M and Kozak, M., 2019. Big Data and Its Supporting Elements: Implications for
Tourism and Hospitality. Big Data and Innovation in Tourism, Travel, and Hospitality:
Managerial Approaches, Techniques, and Applications.
Ivanov, S.H., Webster, C. and Berezina, K., 2017. Adoption of robots and service automation by
tourism and hospitality companies. Revista Turismo & Desenvolvimento.27(28). pp.1501-
1517.
Kotler and et.al., 2017. Marketing for hospitality and tourism.
Lu, W and Stepchenkova, S., 2015. User-generated content as a research mode in tourism and
hospitality applications: Topics, methods, and software. Journal of Hospitality Marketing
& Management.24(2). pp.119-154.
Minazzi, R., 2015. Social media marketing in tourism and hospitality.
Moro, S and Rita, P., 2018. Brand strategies in social media in hospitality and
tourism. International Journal of Contemporary Hospitality Management.30(1). pp.343-
364.
Okumus, B., Koseoglu, M.A and Ma, F., 2018. Food and gastronomy research in tourism and
hospitality: A bibliometric analysis. International Journal of Hospitality Management.73.
pp.64-74.
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Tsai, C.Y and et.al., 2015. Work environment and atmosphere: The role of organizational
support in the creativity performance of tourism and hospitality
organizations. International Journal of Hospitality Management.46. pp.26-35.
Tung, V.W.S. and Law, R., 2017. The potential for tourism and hospitality experience research
in human-robot interactions. International Journal of Contemporary Hospitality
Management.29(10). pp.2498-2513.
ONLINE
SWOT analysis. 2018.[online].Available through
<http://fernfortuniversity.com/term-papers/swot/nyse/6904-thomas-cook-group-plc.php>
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