Strategic Management in Hospitality

This assignment delves into the realm of strategic management within the hospitality and tourism industry. It examines key concepts such as institutional logics, power sources, integrated market and nonmarket strategies, service quality management, and customer complaint resolution. The assignment analyzes relevant research and case studies to illustrate how these strategic considerations shape successful operations in this dynamic sector.

HOSPITALITY
PROVISION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship between hospitality and wider travel and tourism businesses...................1
TASK 2............................................................................................................................................4
2.1 Implication of integration to the hospitality industry............................................................4
2.2 Discussion on integration has affected a hospitality business.............................................5
TASK 3............................................................................................................................................6
3.1 Rationale for selected project linked to target market..........................................................6
3.2 Develop a plan for hospitality business................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality is considered as the important component in the travel and tourism business.
In tourism the component of hospitality are providing the quality services to the customers who
are there for the purpose of entertainment, business or leisure. Hospitality is the relationship
between guest and host and also accounts for delivering quality services to the customers. The
services that host receives are therefore presented as the goodwill of the business. It is the large
industry that focus on the availability of leisure time and entertainment purpose. The hospitality
industry includes hotel, restaurants, pubs etc. This industry accounts for business that provides
services for what the customer is paying for. Hospitality industry or the travel and tourism
business is responsible for the huge percent of market share and helps in increasing the economy
of the country. Travel and tourism also enhances the opportunity for employment and the value
of the business. Hospitality services is the centrally organised social network for traveller who
travels and seek place for accommodation and comfort stays. In the present report the role of
hospitality industry in the travel and tourism sector is discussed and the relationship between
hospitality and wider travel and tourism business. The target market in the hospitality business
and also accounts for the implications of the integration to the industry.
TASK 1
1.1 Interrelationship between hospitality and wider travel and tourism businesses
Hospitality businesses are the important providers of quality services to the travel and
tourism industry. The hospitality services may be for leisure or business for the traveller as they
spend their time at their hotel for comfort. The interrelationship between the hospitality and
travel and tourism sector is as follows:
 Package holidays- The role of hospitality in the holidays that provides comfort stays is
important. The hotels that are also included in the package holidays are interrelated with
the package prices that are provided and included. In budget package one could not think
of a 5 star hotel, it would account for the 3 or 4 star accommodation. The popular tourism
providers gives holiday packages that are most popular and also benefits the customers
from good hotel rates and prices of airline tickets as well(Mok, Sparks and Kadampully,
2013). Customers in the packages may opt for accommodation only for room basis,
1

breakfast or half board and full board as well. The travel provider makes an effort to have
a check on their customers on regular basis to ensure that they are having quality services
and a pleasant stay. They also look for any problem and discuss it with to their customers
and get it resolves as soon as possible. There are packages that provides full
accommodation and tours within the resort or hotel and their activities are also in the
premises only.
 Aviation- The success of aviation industry is also depended on the availability of the
accommodation. The business of airline industry is also affected if the traveller is not
able get accommodation of his interest. There is a problem for airlines as they are not
able to reach the small destinations as well. The stays that are fully booked and there is a
problem for reservations also impacts on the mind set of the traveller and also affects the
airline industry(Redding and Chen, 2017). The aviation industry also need to analyse the
availability of the accommodation for the tourist and schedule flights according to the
destinations. The aviation industry provides services in the airlines in the form of catering
and also comfortable sittings. The flights that are in budget charges extra for foods and
beverages and higher class airlines includes food and beverages in the ticket charges.
Some luxurious airlines have the best quality services and also provides bed facility and
dining services and food according to customer preferences.
 Business travel- The people who are travelling for the purpose of business always opt for
the hotel that have all the necessary facilities to make their work complete with comfort
and easily. Their purpose is business and they search for accommodation that has
business centres, Wi-Fi and internet access, meeting rooms and area for conferences.
They also require comfort stays and make some time for leisure, for their meetings also
and for their clients in the meetings. They seek for pleasure that are also included in the
tour packages and for comfort and healthy stays. This business tour also accounts for
restaurant or catering services as well. Business people opt for luxurious restaurants so
that they are able to impress their associates and clients. In the growing environment
globally there is a need for travel related to business and this connects them with the
people interested in the business activities. Budget airlines gives more affordable and
luxurious services to the companies although some business entities feels that travelling
in business class will also enhance their reputation. Business class was developed in
2

aviation services for the people who travel for business purpose and need their space to
complete their work.
 Conferences and exhibitions- Exhibition and conferences are also important for the
national and international industries of travel and tourism. Many companies host their
conferences and exhibitions at the places that attracts individuals and business personal
and providing them comfortable stays is their main concern. The stays and organising the
exhibition takes a lot of amounts and inviting investors from around the globe. They give
responsibilities to the hotels and catering business so that the interested personal is
provided with the best quality services. For this purpose they also provide them with the
services that helps in attracting consumers in the business(J. Harrington, Chathoth and
Altinay, 2014). The conference attendees are always hosted at the hotel that is organising
the event.
 Visitors attractions- The attraction of a visitor is the thing that gets people to know and
show their interest in the place and keep them talking to the interest of tourists. Attraction
for a particular place may be by natural or man made creatures such as museums, parks
or natural parks. Some places that are attracting the individual is by the natural interest of
the person or because of the activities taking place there. The services that they provide at
these places and attracts tourist attraction for the particular situation. The travel
companies include places such as these parks to attract the customers and tourist and give
them services for their packages. The travel and tourism businesses creates these
packages to attract tourist and develop relations in the business. Most theme parks also
run their restaurants and cafe, to provide tourist with quality services, meals and
entertainment areas. They also give them space for their enjoyment and many best offers
so that they can enhance their business at the larger extent.
The relation between hospitality and wider travel and tourism is interrelated as they have
to provide attractive prices for their customers and also include quality services as both are
interconnected in the hospitality businesses(Salazar, Briones and Festijo, 2017). The business
need to provide them the best comfortable stays so that they give positive feedback for the
services, so to enhance their business at the larger and wider context. This helps them to grow in
the industry and attain brand value and create good image in the travel and tourism industry.
3

TASK 2
2.1 Implication of integration to the hospitality industry
Integration became popular in the 1990's when businesses were focused on attaining the
sale for economies, and acquiring small business that would profit them from lower cost of
operations. The companies provided their own products by in-house efforts and their was no
need of outsourcing.
 Vertical integration- This is the process in which the company overtake another company
in the distribution chain and also makes an agreement of merger. This is brought into
account by maximising profits and benefit from lower cost of operations. One of the most
and well listed example of this integration is of takeover of Star-wood hotels & resort by
Marriot international for 122 billion US$. The company implemented the scale of
economies at its top agenda and focused on training people within the company rather
than recruiting from outside. The company gain from the acquisition and also increased
its business in the global market without having prior planing and structuring the business
policies. The policies would be same in the global market and also increase their interest
in the functioning of the business. Barriers to entry will make sure of limiting the
competition in the market(Calhoun, 2017). Companies also gains from controlling the
suppliers such as accommodation.
 Horizontal integration- It is important for the companies that want to expand their
business on customer base and maximise profit and benefit from the scale of economies.
It occurs when a company acquire or merges with the company at the same stage of the
distribution chain. The integration has affected the business of hospitality in Marriot
international, Accorhotels as they have to make arrangements for the business pupose and
also in the hospitality industry the acquiring and merger business need to know about the
work culture of different departments and develop strategies to ensure business for them.
 Branding- The brand name is alone responsible for particular feeling and emotion that
relates to the personal experience with the brand. The success of the tourism business is
related with the techniques adopted by the players for branding and how well they can
contribute in delivering their message to the target market. It is important for the
companies that they keep their brand name so that the customers are able to associate
4

themselves with the brand. Brands make it possible to attract customers and provide them
with the quality services.
 Market control and integration between larger organisation- Many tour operators
purchase hotels overseas to increase their presence and profitability. With these
techniques they are able to control the business market and control their hotels to raise
their advantages and providing more beneficial and affordable packages and increase
their sales. Integration between the larger organisation are threats to the smaller
organisation and then they will also have to face take over by the larger
organisation(Xiang, Magnini and Fesenmaier, 2015). The travel and tourism mostly
depends on the survival of the best service provider companies, the companies that are
able to give best offers and provide balance between quality, quantity and services for the
money.
 Starwood hotels and resorts worldwide- This is undoubtedly the one of the most powerful
hotel and leisure chain. It has through years gain success by integration projects and is
increasing internationally. The acquisition programs has increased its customer base to a
larger extent. They are increasing their business and acquiring customer based loyalty to
gain profit in the market and increase their market share.
2.2 Discussion on integration has affected a hospitality business
Impacts of integration in the hospitality business has made a great significance on the
companies. Here are some impacts of integration as given below:
 Economies of scale and market share- When the businesses integrates it reduces the
operating costs. When a hotel takes over another hotel, the cost that is associated with the
investment will be high, although the business would be benefited by offering more
products and services and it will be in process as soon as possible. In this process the
business would be profited as they will be able to acquire the global market and make
arrangements according to their customer affordability. The more business operating
effectively the more the investment ratio would be preferred and more they would be
willing to invest(Standing, Tang-Taye and Boyer, 2014). The chain would deliver to their
customers in an effective way by giving them rates lower than other investors and hotels.
The acquisition process of tour operators to the hotel business will help them to develop
5

travel packages in the affordable cost and gain profit through them. They can easily lower
the price of the packages and get benefits from the customers. With the most suitable
strategies at the right time and right place will increase their market share and the
profitability can be increase as well. With horizontal integration companies are able to
increase their client base and also be able to enter new markets.
 Standardisation- It is time taking and complex procedure, and that to in the industry that
has so many shifting. The process of integration can certainly be standardised and it is
more difficult to standardise the people working in the business. The process of
standardisation in hotels is possible but it is limited. The telephonic operations can be
standardised and also greetings of the guest on check-in can be standardised. There will
be variability as there are different departments in the company and they have their own
way of dealing those situations(Clift and Page, 2015).
 Quality- The quality will improve by integration it is not guaranteed. It depends on the
element how the man power works in the company. When there is take over of the hotel
by another company that does not mean that the new owner will give positive results and
it will be a better approach towards improving the quality. The employees in the
company may not get with their new bosses as they believe that the practices in
developing the quality is not practical and it is risk to make changes. It is a matter of
concern that management of organisation will not opt for top-down approaches.
Management need to listen to their employees and make contacts with their customers
and know what they expect from the company.
TASK 3
3.1 Rationale for selected project linked to target market
The selected project is for opening a restaurant and the main product of the business is
coffee shop.
 Concept- The idea of the business is to attract and target customers for coffee and the
targeted market is youngsters and students. The idea is to start a coffee shop and develop
it in such a way that it is able to attract the targeted market easily. The reason behind the
6

target market is that they are easy to attract and are in demand in the growing world. It is
required that the business also grow in the market and gain profit.
 Objectives- The core objective of the business is to attract coffee lovers and also provide
customer services in the best quality(Lopes, de Andrade and Wada, 2016). To increase
the sales and gain profit through it.
 Vision- To be the best restaurant chain and with the best quality of coffee. The company
vision is to be leading coffee shop in the business.
 Market research- The market research is done on the basis of quantitative analysis that
accounts for the business according to the number of coffee shops in the market and the
best coffee providers and with positive feedback from the loyalty of its customers. The
business also takes into account the number of coffee purchased in the country. The
research must be based on the analysis of the market research of what is the ratio of the
coffee and tea lovers in the market(Wolfe, Phillips and Asperin, 2014).
 Target market- The market to be targeted is youngsters and students in the market. The
target market is selected on the basis of their interest and according to the ratio of youth
with others.
 Location- The location preferred is near London University. The location is selected
because of the growth of universities and the best place to attract the youth. The market
scope and size is very wide and it accounts for the number of coffee shops and its
compatibility in the market. The funds invested is from the loan taken from the banks to
operate the new business. The product of the restaurant is coffee and the variety of coffee
that helps in attracting as many customers in the market. The different styles of coffee
and different taste and preferences according to the youth and that makes it possible to
attract the customers(Cheung, Kong and Song, 2014). The special plan and different
strategy to attract customers is by initialising the membership plans so to control the
business and grow with the practices globally.
3.2 Develop a plan for hospitality business
There is a requirement of developing a strategic plan for hospitality business so that it can
function its business effectively and according to the competitive market.
7

 Marketing plan- The marketing plan must be made after analysing the target market and
it should include information related with the clients or customers whom the company is
willing to target and the business will be depended on(Greve and Zhang 2017). It should
relate to the marketing strategy of the business and also the plan must include the
complete SWOT analysis of the market.
 Strength- This includes the strength of the business where the company is focusing and
where they are giving their best. The strength of the coffee shop includes its variety of
coffee and the interest of the customer in relation with the coffee.
 Weakness- The weakness of the company is its new entry in the market and need to
attract new customers and also need a well organised market plan.
 Threats- The threats to business are ongoing brands and that have a good brand value in
the market. The threats include all the Small and large business organisation dealing in
the same product and business.
 Opportunities- Their biggest opportunity is that they are entering the new market and
have all the availability to price the product by analysing the market demand and by the
requirement of the market(Holburn and Vanden Bergh, 2014).
 Analysis of competitors in the market- To compete in the market it is essential for the
company to know about all the competitors in the market. It is required by the company
that they collect information about their competitors and analyse the market and develop
strategies according to their requirement and compete in the market. The marketing plan
includes all the required information related to the business growth and development
strategies.
 Product analysis- The product to be categorised in the business must be evaluated and
prepared well in the company. It is required to analyse the products of different
companies and develop plans according to them so to gain competitive advantage.
 Marketing- The product marketing must be done accurately and effectively so that it is
easy to attract the customers in the market. The marketing of the product is very essential
as it done to take the product to reach every customer in the market(Boschma and Hartog,
2014).
 Promotion- The promotional events of the product need to be done effectively and it is
required to know the condition of the market. The promotional events can be done with
8

the help of advertisement, social media because the targeted market is easily available
there.
 Organisational structure-
CONCLUSION
From the above it is concluded that in the hospitality business it is required to provide
quality services so to attract customers and to gain their loyalty. The travel and tourism business
is also related with the hospitality business and includes hotel chains, aviation industry etc. The
business importance and brand image is considered by the type of services they provide in the
9
Illustration 1: organisational structure
(Source:Organisational theory)

industry. The business need to run effectively by developing strategies to compete in the market
and providing better services to their customers. The hospitality industry is responsible for the
service they provide to their customers and they have to develop effective services to their
customers. It is essential in the wider business of travel and tourism that they make well
organised strategies for their customers to develop in the business world. The integration of large
hotels gives a positive impact on their image as there is no need to develop more cost for the
production purpose. The cost to company lowers down with the acquisition of other companies.
10

REFERENCES
Boschma, R. and Hartog, M., 2014. Merger and acquisition activity as driver of spatial clustering:
The spatial evolution of the Dutch banking industry, 1850–1993. Economic
Geography. 90(3). pp.247-266.
Calhoun, J. R., 2017, October. The Relationship Between Gender and Career Advancement in the
Hospitality and Tourism Industry. In Global Conference on Services Management
(GLOSERV 2017)(p. 50).
Cheung, C., Kong, H. and Song, H., 2014. How to influence hospitality employee perceptions on
hotel brand performance?. International Journal of Contemporary Hospitality
Management. 26(8). pp.1162-1178.
Clift, S. and Page, S., 2015. Health and the International Tourist (Routledge Revivals).
Routledge.
Greve, H. R. and Zhang, C. M., 2017. Institutional logics and power sources: Merger and
acquisition decisions. Academy of Management Journal. 60(2). pp.671-694.
Holburn, G. L. and Vanden Bergh, R. G., 2014. Integrated market and nonmarket strategies:
Political campaign contributions around merger and acquisition events in the energy
sector. Strategic Management Journal. 35(3). pp.450-460.
J. Harrington, R., K. Chathoth, P., and Altinay, L., 2014. Strategic management research in
hospitality and tourism: past, present and future. International Journal of Contemporary
Hospitality Management. 26(5). pp.778-808.
Lopes, A. S., de Andrade, S. S. and Wada, E. K., 2016. Coaching and hospitality in hotel
management in São Paulo metropolitan region. TURyDES: Revista Turismo y Desarrollo
Local. 9(21).
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Redding, T. and Chen, P. J., 2017. Out of Soup: Resolving Customer Complaints in Hospitality
Management. In Trade Tales: Decoding Customers' Stories (pp. 127-131). Emerald
Publishing Limited.
Salazar, E. A., Briones, J. M., and Festijo, B. T., 2017. Teaching Performance of Hospitality and
Tourism Management Faculty among selected Universities in Batangas City,
Philippines. Journal of Tourism and Hospitality Research. 14(1).
11

Standing, C., Tang-Taye, J. P. and Boyer, M., 2014. The impact of the Internet in travel and
tourism: A research review 2001–2010. Journal of Travel & Tourism Marketing. 31(1).
pp.82-113.
Wolfe, K. L., Phillips, W. J. and Asperin, A., 2014. Using hotel supervisors’ emotional
intelligence as a benchmark for hospitality students. Journal of Hospitality & Tourism
Education. 26(1). pp.2-9.
Xiang, Z., Magnini, V. P. and Fesenmaier, D. R., 2015. Information technology and consumer
behavior in travel and tourism: Insights from travel planning using the internet. Journal of
Retailing and Consumer Services. 22. pp.244-249.
12