Hospitality Industry Integration: A Critical Analysis of Mergers and Acquisitions

CONTENTS
INTRODUCTION.....................................................................................................................................2
TASK 1....................................................................................................................................................3
1.1 INTERRELATIONSHIPS BETWEEN HOSPITALITY AND TRAVEL AND TOURISM SECTOR.................3
TASK 2....................................................................................................................................................4
EXECUTIVE SUMMARY.......................................................................................................................4
INTRODUCTION.................................................................................................................................4
DISCUSSION.......................................................................................................................................4
2.1 IMPLICATIONS OF INTEGRATION FOR THE HOSPITALITY INDUSTRY............................................4
2.2 EFFECT OF INTEGRATION ON HOSPITALITY BUSINESS.................................................................8
CONCLUSION...................................................................................................................................10
TASK 3..................................................................................................................................................11
3.1 RATIONALE FOR SELECTED PROJECT..........................................................................................11
3.2 HOSPITALITY BUSINESS PLAN COVERING ORGANIZATIONAL REQUIREMENTS, STRUCTURES AND
ALLOCATION OF HUMAN RESOURCES.............................................................................................14
CONCLUSION.......................................................................................................................................18
REFERENCES........................................................................................................................................19

INTRODUCTION
Hospitality is an important part of travel and tourism industry and when we refer the term
hospitality people define it as a business of helping others and making them feel relaxed and
to enjoy themselves. In simple words hospitality in the travel and tourism industry is the
combination of food, accommodation and beverage groups which collectively makes it as
the largest segment of the industry.
In this assignment, the readers will get an understanding of the diversity of the hospitality
industry and its relation to the travel and tourism industry. In the later sections of the
assignment, the impact of integration of the hospitality industry and various future
implications will be explained briefly. In this assignment, a development plan for the
hospitality business will be described covering the structure of the organization, allocation of
the workforce and other resources with a proper description of an organizational chart.

TASK 1
1.1 INTERRELATIONSHIPS BETWEEN HOSPITALITY AND TRAVEL AND
TOURISM SECTOR
There is no existence of the tourism
industry without the integration of
hospitality. Both the industries that are
hospitality and tourism are
interdependent on each other for their
business (Mensah and Dei, 2013). It is
quite obvious that without the hospitality
industry the tourism industry would have
a large gap the reason being there would
be no mainstream places for tourists to
stay which would decrease the popularity
of that tourist destination with the
passage of time. The hospitality industry
basically includes food and
accommodation services and if these
services are not available then tours
activities such as tours, excursions and
tourists attractions would decline among
the users thereby decreasing the revenue
of local area and its people.
The tourism industry works side by side
with the lodging and attraction segments
for example various tour operator
companies provide specific lodging
facilities and exclusive arrangements such
as eateries, refreshments and would also
escort tourists to places as part of their
tour fees (Law, et al. 2014). Some of the
main hospitality organizations in the world
include Whitbread Plc, Hilton and Marriott
hotels etc., these organizations work in
consonance with the tour operator
companies for facilitating the tourists
from across the globe. Tourism is basically
an activity that mainly includes
accommodation, accessibility and visiting
various popular attractions whereas the
hospitality industry provides the tourist
with the facility of accommodation.
Due to the rapid increase in globalization
the hospitality industry has itself emerged
as one of the most developed industries
when compared with other industries
(Mok, et al. 2013). As per the statistical
reports, tourism industry contributes to
approximately 33% of the nation's GDP in
which there is a wider contribution of the
hospitality segments too. The hospitality
industry consists of various elements and
tourism industry is one major of those
elements. The tourism industry in itself

constitutes the progress of farmhouses,
motels, guesthouses, villas, parks etc.
COMPOSITION OF HOSPITALITY
INDUSTRY
In the travel and tourism industry tourists
from around the world make use of
variables from the hospitality industry and
these variables are briefly described below
(Barrows, et al. 2012).
Hotels
The type of a hotel is determined by its
size and location. A hotel is also classified
by its function and target market,
amenities, standards and service level. A
hotel is classified into various types of
variables such as the number of guest
rooms, sizes of rooms like a small
boutique or a large hall with thousands of
rooms (Farrou, et al. 2012). The services
provided by the hotel are also a key such
as inexpensive, costly or budget friendly.
There can be some extra facilities within
the hotel such as a place for vehicle
parking, spas, gym, golf courses etc. The
type of ownership is also an important
variable as there are many independent
owners, third party owners or franchised
hotels. For example, there are 19 different
hotel brands of Hilton and Marriott having
a separate name for each brand and
offering different prices and services to
the customers. Moreover, there are many
industry organizations like the Trip advisor
or AAA who provide consumer ratings for
individual hotels.
Restaurants and Night Clubs
A restaurant is a part of the hospitality
industry for the tourists or guests where
people visit the restaurants for sitting and
eating meals being cooked or served at
the premises (Zomerdijk and Voss, 2010).
A nightclub is a place of entertainment
and fun but it should not be misjudged as
being a bar as nightclubs have an inclusion
of music and dance where a DJ plays
recorded music.
Pubs and Bars
Pubs or a bar is a place where people
come for consuming beer or other drinks
and sometimes food as a part of leisure
and a fun activity (Brotherton, 2012).
Contract food service providers
The food service providers have an
agreement with their clients and the meal
providers. The clients of the food service
providers could be anyone for example
school, private individuals or public
entities.
Hospitality Services

In the hospitality industry, there are
numerous services such as food and
beverages which include restaurants, bars,
catering, banquet and events. The next
services include the hotel service in which
revenue management, front office, room
divisions etc. services are included.
Membership Clubs and Events
The events services basically include
meeting and conferences, entertainment,
leisure and sports events (Brotherton,
2012). There are many benefits of taking
the membership of hospitality and tourist
organization as they provide various
monetary benefits to the people.
Becoming a member of these
organizations tourists from around the
world can have access to their
development programs, Webinars, access
to company tools and much more.
Travel and Tourism services and Visitor
Attractions
The services are linked with hospitality
services such as cruise ships, airlines, tour
operators, agencies etc. The travel
services is a complex relationship between
a group of suppliers, tourism products,
tour operators, travel agents, destination
marketing organizations and many others.
The travel services are the reserved
components for tourist experiences and it
is a part of a business function. Some
additional hospitality services include
housekeeping services, Cleaning Services,
maintenance services etc.
Accommodation Service and Passenger
Transport
Hotels, beds, lunch, breakfast etc. and
lodging facilities represent a wide segment
of the hospitality industry and hospitality
industry integrates comfort with these
services for providing comfort to its
customers or tourists. Passenger transport
is another segment that hospitality
industry encompasses (Swarbrooke and
Horner, 2012).The transportation services
may include train, airline, bus, cruise ships
etc.