Tourism and Hospitality Industry Analysis

This assignment delves into the multifaceted world of tourism and hospitality. Students are tasked with analyzing the influence of various elements, including weather patterns and technological innovations, on this dynamic industry. The analysis also encompasses a closer examination of prominent players like Thomas Cook, exploring their historical context, business strategies, and impact on the sector.

Hospitality Provision
in
Travel & Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Scope and scale of hospitality industry within travel and tourism sector and role of
hospitality industry within the travel and tourism sector (440) .................................................2
TASK 2............................................................................................................................................4
2.1 Integration in hospitality and travel and tourism business and affects of horizontal and
vertical integration on hospitality organizations ........................................................................4
2.2 Impact of integration and ways decided by Thomas Cook to respond the consequences of
both horizontal and vertical integration .....................................................................................5
TASK 3............................................................................................................................................6
3.1 Rational for a new hospitality business outlining the product service concept ...................6
3.2 Project proposal target market, location, operating model and design based on through
market potential analysis ............................................................................................................7
CONCLUSION................................................................................................................................8
REFERERNCES..............................................................................................................................9

INTRODUCTION
In the present time, travel and tourism as well as hospitality industry are growing and
developing at a fast pace. Main reason behind this is that most of the people prefer to travel at
several places. At the same time, they focus to stay at hotels and resorts. Travel and tourism
industry provides various services which are designed according to customer's requirements.
Hotels and resorts are paves where travellers wish to stay, eat and drink as per their choices. In
this, with the help of travel and tourism organisations, traveller comes to visit at new places and
in this, tour operators also provide accommodation facilities. Main motive of both the industry is
to meet the requirements and expectations of customers. The present research report helps in
understanding the concept of hospitality provision in travel and tourism sector. For this purpose,
Thomas Cook Group, a tour operator is taken into consideration. This report also evaluates the
role of hospitality industry within the travel and tourism sector and impact of integration within
hospitality industry. Further, it helps in understanding that how to plan the development of
hospitality business.
Company background of Thomas Cook Group
To understand the concept of selected topic, Thomas cook group tour operator is selected.
This is a public limited company which delivers diversified services to the customers. Main
motive of cited firm is to offer high quality services to customers in reasonable prices. This
company is well known for leisure travel and its journey started in 1841 (About Thomas Cook,
2015). This travel company was founded in 2007 and it operates in both the hospitality and
tourism industry. Headquarter of cited company is in Cambridgeshire, England. In addition,
products of Thomas Cook Group are package holidays, cruise lines, hotels and resorts as well as
charter and passenger airlines. Cited firm is providing their services to 23 million customers. In
addition to this, their core group values are defined below as:
 Succeed as one team
 Deliver for our customers
 Engage each other
 Drive for results
 Act with integrity
By following all these values, employees provide their best services to increase the
productivity of cited organisation.
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This company deals with several tour operators and charter airlines which are situated in
the United Kingdom. This company is considered as the best leading leisure travel group across
the world in 2015. Thomas Cook is handled by approximately 21,815 employees and also listed
in London Stock Exchange. Their main motive is to enhance the customer experience in terms of
travel and accommodation facilities. Their core values are based on three components such as
trust, innovation and personalisation (Thomas Cook History, 2014).
TASK 1
1.1 Scope and scale of hospitality industry within travel and tourism sector and role of hospitality
industry within the travel and tourism sector
Both the travel and tourism as well as hospitality sector provide wide range of services to
their customers as well as travellers. In order to deliver comfort facilities to all the travellers,
Thomas Cook provides various kinds of services which are related to food and beverages,
accommodations, adventures events, holiday tour packages, airlines etc. All these services are
designed according to requirements and expectations of various travellers.
Scope and roles of hospitality industry within travel and tourism sector
In the present time, both the sectors have gained much importance and lots of business
across the world. Every person desires to travel from one place to another with the purpose of
business meetings, family reunion, holiday fun and to celebrate especial occasions. There are
several reasons present which influence people to visit and experience the beauty of new place
(Alexander, 2007). It is important for both the sectors to meet and fulfil the expectations as well
as needs of customers according to set standards in respect to quality of services. So, it is clear
that customer satisfaction is the foremost aim of both the sectors (Dickinson and Mika, 2013).
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Within the travel and tourism sector, hospitality industry plays an important role. Further, it can
be defined that both the sectors are dependent on each other. Due to interrelationship between
both the industries, Thomas Cook provides tourism services as well as hospitality services
(Thomas Cook History, 2014). In this context, cited company renders facilities of bars, cafe,
night club, amusements parks pubs, cruises and restaurants to increase the satisfaction level of
customers. In this, travellers use airlines facilities of cited firm and visit at new place. Further,
they stay in hotels of cited company in which various facilities like parks for kids, clubs,
adventures events, walking tours and tour of favourite places etc. are delivered to them in order
to meet their demands and enhance their experience (Becken and Wilson, 2013). When
organisation provides high quality services to customers and satisfy their requirements, then they
convert into loyal customers because their trust increases towards the company. In addition to
this, cited company also delivers all types of services at very reasonable prices which also
attracts large number of people. Further, it has been observed that to meet the requirements of
customers, cited company provides various types of accommodations facilities such as motels,
villas, resorts, cruises, guest houses etc.
Role of hospitality function using own experience in Thomas Cook Group
As an executive of Thomas Cook, for the purpose of management development process, I
was posted at company's headquarter to oversee the hospitality projects for the period of 6
months. In this time period, I focused to visit number of sites to oversee the hospitality projects
and their operations. In the time period of 6 months, I observed many things of Thomas Cook in
relation to hospitality operations. They provide diversified services to customers in order to
satisfy and meet their requirements. For customer's comfort level, cited company renders online
services. Through this, customers can book their flights, tour package and hotels as well. They
all are done in an advance manner, because still sitting at home, customers can book various
services to enjoy their holidays (Barrows, 2011).
In addition, when I observe that there are several types of hospitality services such as
resorts, cruises facility, villas, bars, night clubs, adventures walking tours and amusement parks
etc. are present for customers. All these types of facilities were present to full fill the
requirements of every age people. Further, I also observe that many skilled tour guides were
present who delivers the information about destinations to travellers. Further, cited company also
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provides the facility of regional food & beverages and to reduce the stress and tiredness, spa
facilities were also present (Brotherton, 2013).
TASK 2
2.1 Integration in hospitality and travel and tourism business and affects of horizontal and
vertical integration on hospitality organizations
Integration
The term integration is related to long rum decision making process which is done by
producer. In this industry, the main trends are related to integration and economies of scale. By
focusing on these trends, Cited company Thomas Cook is able to achieve buying power and
control over both supply and distribution of their services in market place. It is observed hat in
previous years tour businesses were focused to gain the benefits from low operating costs. In
relation to this, all business units started to develop their products in-house manner which results
by reducing the conditions of out sourcing (Cook, Hsu and Marqua, 2013). With the purpose of
implementing this type of strategy, organisation starts to integrate their business operations to
other business units to save the money. It is evaluated that this type of strategy helps the
organisation in order to increase their market share and presence at international level. In respect
to both industry hospitality and travel and tourism, it is evaluated that both are dependent on
each other (About Thomas Cook, 2015). In order to provide quality services to customers, both
are required to coordinate with each other. In this, there are basically three types of integration is
present which are defined below as: Horizontal integration- In this company is required to focus on opportunities of
economies scale. Vertical integration- This comprises with the ability to control and develop the market
and inputs in effective way.
 Diagonal integration- In order to operate the business in market more profitably, it offers
the chances to use differential advantages which are already existing (Kotler, Bowen and
Makens, 2006).
In order to understand the concept of integration in both industries, one example is here.
With the purpose of providing the best accommodation, tour, food and beverages related
facilities to customers, Thomas cook establish a contract with Marriott hotel. This contract was
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beneficiary for both companies. With the help of this type of integration, market share and sales
of both companies increases in effective manner. In addition to this, the term vertical integration
is basically a method in which one company comes under contract with pother business unit with
specific reason. The purpose of making vertical integration is to decrease the operating cos and
increase the profitability (Evans, Stonehouse and Campbell, 2012). It is evaluated that vertical
integration can be lateral, forward or backward in nature. According to this Thomas Cook has
adopted the backward type vertical integration. It gives positive impact on business through
which they operates now many business units such as Thomas Cook Cruises, Thomas Cook
Travel agents, Thomas Cook charter and airlines and Thomas Cook tour operators etc.
On the other side, horizontal integration is also beneficial because it helps the
organisation to maximize their profitability by increment in economies of scale, productivity and
customer base etc. In this, Thomas Cook is also following the concept of vertical integration. On
this basis, they establish merger with My travel & co-op travel. The main motive of this merger
was to gain profit and save the cost (Goh, 2012). With the help of this cited company gets the
positive outcomes in terms of decline in cost of international treading and increment in market
power. Along with this, by sharing the resources, firm also achieve economic of scales.
2.2 Impact of integration and ways decided by Thomas Cook to respond the consequences of
both horizontal and vertical integration
Both vertical and horizontal type integration gives the impact on the business strategies
and operations of Thomas Cook Group. In this context, the horizontal integration helps to
increase the business efficiency in effective manner and also increase the presence in
international market place. This can be understood by one example such as in 2007 by merging
with TUI, cost of travelling operations reduces which leads to gain high profit. It also gives
advantage to cited company in terms of increment in sales of service (Dwyer and Forsyth, 2007).
In addition to this it is also evaluated that by sharing and using the resources between Thomas
Cook and other business units also reduces the wastage of available resources. But it also gives
negative impact for future aspect that cited company can face the reduction in brand value at
market place.
On other side, Thomas cook has also adopted the vertical type integration which gives
impact on their business in both positive and negative manner. This type of integration helps the
cited company to develop new and innovative travelling services and also increase the
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investment opportunities etc. This also gives the competitive advantage to Thomas Cook because
customers can identify the difference between other competitors and Thomas in respect to
quality of services (Koning, 2014). In addition, vertical integration also helps the cited company
to increase their business profits and market share. It also gives advantages by offering the
market power in hands of Thomas Cook. Through this, cited firm made the tight control over
quality standards of all types of services that are provided by business partners. But this
integration also gives the negative impact such as at the time of sudden high and low in demands,
it is very hard to make the balance capacity in this. It is observed that it has increases the
dependency on other business firms (Pirnar, Bulut and Eris, 2012).
In this context, several types of initiatives have taken by cited company in order to reduce
the consequences of both types of integrations. In this company increase the standardization of
their services in their all business units. In addition, they also started to focus on capacities,
flexibility and capabilities. Further, to reduce the dependency on other firms cited company also
opened their own villas and airline facilities etc.
TASK 3
3.1 Rational for a new hospitality business outlining the product service concept
In this project of winter special is designed for a new hospitality business mend Travel
Trip. This organisation is planning to propose a new service project. So, it is essentially required
to analyse the market potential in accurate manner. With the help of research it is identified that
there are several business firms are present in market place which also offers the same services to
customers. In survey it is also analysed that customers are also well satisfied with their services.
In this context, rational for a Travel Trip organisation is defined below which focus to design
new winter project as:
Product service concept- In this, cited firm requires to make the all required arrangements in
effective manner so that large number of customers attract towards it. In this it is required to
make the arrangements according to the requirements and expectations of customers
(Zhengliang, Rumai and Xiangheng, 2014). Along with this, services related to food and
beverages are also determined according to weather conditions. In this, tastes and preferences of
food will be set according to the customers preferences. In addition to this, the supportive
facilities according to different age people will also consider. In this, facilities such as
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amusement parks, entertainment facilities, gym, pool, bars and night clubs etc. Further, on the
basis of product service concept, cited firm is essentially required to consider the requirements
and needs of customer at the time of planning the winter project. In this winter project, cited firm
will allow the customers to select the theme of their accommodation facilities such as beach
theme and nature theme and tradition al regional theme etc. On the basis of these types of
themes, customers can enjoy their quality time with their family members and friends etc. In this,
customers can select the bedding styles according to their comfort level (Enz, 2010). In addition
to this, to gain the attention of customers, appropriate marketing strategic tools will be used. For
the same purpose, Marriott organisation will also focus on their interior and exterior look. In this
context, for the funding purpose cited firm will require to contact with large business firms.
3.2 Project proposal target market, location, operating model and design based on through
market potential analysis
In order to produce a project proposal for Winter project of Marriott organisation, few
things are required to be considered through market potential analysis. This is required to analyse
the suitability and acceptability criteria for Winter Project. In this, factors which are required to
be considered are described below as:
Target market- in order to develop a new market, it is very important to analyse the nature and
condition of market. Further, it is also required to identify the target market and customers as
well for Winter project. In this target market and customers are identified to see that features of
product matches with characteristics of what type of customers. By defining the target market
helps to decide what types of resources are required to promote and advertise the services in
front of market and customers. In this context to target customers can be identified according to
segmentations criteria. In this context, the target market group will medium and high income
group (Lashley, 2007).
Location- In this context, selection of location is very important for the success of Winter
Project. In this, for the location of Winter special offer, West London is selected. The reason of
selecting the location is because it holds many destination places which attracts the customers.
Along with this, there are many resorts and hotels are present with very reasonable prices. Thus,
this selected location will be suitable for the Marriott Hotel (WOODSIDE, 2007).
Operating model- In order to run the business operations in effective manner, it is very important
for cited hotel to select an appropriate model of operating the business. In this context, cited
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hotel will follow the business operating model. With the help of this model, employees will
effectively understand their roles and responsibilities so that winter project can be more
successful. In this it will decide the effective promotional tools which will define the advantages
and features of cited hotel's services and new winter project as well (O'Gorman, 2009).
Design- In order to attract the customers, few things are required to be focused at the designing
the environment for new Winter project launching. These things are such as ambiance, interior
and exterior look and culture. Further, to attend the customers, well skilled and groomed
employees will be hired who are qualified in their fields.
CONCLUSION
With the help of this research project it is articulated that both travel and tourism and
hospitality industries are interlinked and dependent on each other. In order to meet the
requirements of travellers, both industries are required to effectively coordinate with each other.
With the help of this research it is evaluated that in order to meet the objectives of travel and
tourism industry, several hospitality operations are essentially required.
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REFERERNCES
Books and Journals
Alexander, M., 2007. Reflecting on changes in operational training in UK hospitality
management degree programmes. International Journal of Contemporary Hospitality
Management. 19(3). pp.211-220.
Dickinson, J.E. and Mika, M., 2013. Awareness of Tourism Impacts on Climate Change and the
Implications for Travel Practice A Polish Perspective. Journal of Travel Research. 52(4).
pp.506-519.
Becken, S. and Wilson, J., 2013. The impacts of weather on tourist travel. Tourism Geographies.
15(4). pp.620-639.
Barrows, C. W., 2011. Introduction to Hospitality Industry. New York: Wiley & Sons.
Brotherton, B., 2013. Hospitality and hospitality. In Search of Hospitality.
Cook, R., Hsu, C. & Marqua, J., 2013. Tourism: The Business of Hospitality and Travel.
Kotler, P., Bowen, J.T. and Makens, J.C., 2006. Marketing for hospitality and tourism. 8(93).
Upper Saddle River, NJ: Prentice hall.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism.
Taylor & Francis.
Goh, C., 2012. Exploring impact of climate on tourism demand. Annals of Tourism Research.
39(4). pp.1859-1883.
Dwyer, L. and Forsyth, P., 2007. International Handbook on the Economics of Tourism. Edward
Elgar Publishing.
Koning, I., 2014. The Disabling of the EC Disability Regulation: Stott v. Thomas Cook Tour
Operators Ltd in the Light of the Exclusivity Doctrine. European Review of
Private Law.
Pirnar, I., Bulut, C. and Eris, E.D., 2012. Improving the performance and competitiveness of
tourism establishments by means of innovation: trends and applications.
Zhengliang, D., Rumai, B. and Xiangheng, W., 2014. Relationship between types of tourism
diversification and tourism enterprise values. Tourism Tribune. 29(2). pp.36-45.
Enz, C., 2010. Hospitality Strategic Management: Concepts and Cases. Hoboken, NJ: Wiley.
Lashley, C., 2007. Discovering hospitality: observations from recent research. International
Journal of Culture, Tourism and Hospitality Research. 1(3). pp.214-226.
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WOODSIDE, A., 2007. Advances in Culture, Tourism and Hospitality Research. 1. Elsevier.
O'Gorman, K.D., 2009. Origins of the commercial hospitality industry: from the fanciful to
factual. International Journal of Contemporary Hospitality Management. 21(7). pp.777-
790.
Online
About Thomas Cook, 2015. [Online]. Available through:
<http://www.thomascookgroup.com/about-us/>. [Accesseed on 1st April 2016].
Thomas Cook History, 2014. [Online]. Available
through:<https://www.thomascook.com/thomas-cook-history/>. [Accesseed on 1st April
2016].
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