Hospitality Provision in Travel and Tourism (DOC)

Hospitality Provision in the
Travel and Tourism
Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Interrelationship between hospitality and wider travel and tourism business..................2
TASK 2............................................................................................................................................3
2.1 Analyse the implications of integration to the hospitality industry..................................3
2.2- Affect of integration on hospitality business..................................................................5
TASK3............................................................................................................................................6
3.1 Development of rationale for TUI Group clearly justifying decisions linked to target
market.....................................................................................................................................6
3.2 Business Plan for TUI Group...........................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Hospitality sector is one of the most crucial service providers for international travel and
tourism industry (Barros, Butler and Correia, 2010). It includes all businesses which
accommodate tourists and travellers while travelling to other destinations. They are an integral
part of the overall experience and must live up to standards which are expected by clientele and
those which are set up by the industry. Modern industries such as TUI Group also set up certain
standards based on the evaluation and personal experience of people. TUI (Touristic Union
International) Group is a multinational travel and tourism enterprise headquartered in Hanover,
Germany being chosen in the report (Dickinson and Lumsdon, 2010). It seems to be the largest
firm in the worldand owns travel agencies, hotels, airlines, cruise ships and retail stores. The
group owns six European airlines and nine tour operators based in Europe. It is listed on the
Frankfurt and London Stock Exchange as a constituent of FTSE100 Index.
The origins of company lie in industrial and transportation enterprise Preussag AG,
which was originally formed as a German Mining Company. It was incorporated on 9th October
1923 as (Prussian Mine and Foundry Company. In 1927, it was merged with the Ruhr Coal
Company, Hibernia AG and electricity utility to become the United Electrical and Mining
Company of United Kingdom. With sale of Salzgitter AG and purchase of navigation and
Logistics Company in 1997, Preussag AG became a global enterprise in service and leisure
industry (Brotherton, 2012). In addition, firm acquired 25% shares of Thomas Cook and in the
mid of 2000, Preussag acquired 50.1% of stake in Thomas Cook. In 2012, company ended its
shipping Business and started optimizing its travelling operations in Russia, China and India.
Major operations of new TUI Group have:-
 Around 67,000 in the world , there are employees that have been build in the world
including newly travel operating countries like Russian, Chinese and Indian staff
members.
 More than 1,800 travel agencies which have been developed from 2012 till 2016 due to
major support of London and Frankfurt Stock Exchange groups.
 There are 6 airlines which are providing various travelling facilities across the world with
130 aircraft that have capacity of around 1, 00,000 customers moving on daily basis.
 300 Hotels and Resorts have been developed across the globe by firm which provide
various hospitality services providing different facilities to business houses like Currency
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Exchange systems, 24 Hour room facility available and courier services across its hotels
which are located around the world.
TASK 1
1.1 Interrelationship between hospitality and wider travel and tourism business
Hospitality organizations are some of the most important service providers to travel and
tourism industry (Hall, Timothy and Duval, 2012). It is either a leisure or business people that
would want to spend a considerable amount of time in their hotel, which is particularly of a
luxury status. There are guests that would understandably would like to reap benefits provided
by their hotels, majorly for premium prices paid. There are various benefits being performed by
hotels for travel and tourism sector:-
 Packaging Holidays: - The role of hospitality in package holidays is very much
significant. Hotels which are included in package holidays ultimately depends on the
prices being paid for chosen packages. If someone opts for a budget package then it is not
possible to get 5 star adjustment, but some hotels provide only 3 or 4 star adaptation. TUI
Group provides mass purchase to a lot of consumers so that they can be benefited from
getting good hotel rates and airline tickets (Heung, Kucukusta and Song, 2010). Hotels
also provide a special offer to company by offering discounts on accommodations and
other services being offered by building for a small of 3 to 4 day packages.
 Aviation: - The industry of airline's success depends on accommodations available . This
is based on situation that industry chooses to provide complete facilities to travellers by
providing them bed and food at proper time whenever required. In some situations and
places if there is no availability of hotel industry being free on particular booking days
then company will suffer huge loss (Hjalager, 2010). This is because of the fact that
many customers chose to book flights and other services on availability of hotels. It is
necessary for hotels to coordinate with TUI Group as they can help in providing various
benefits pertaining to growth and development of business operations of Airline and
Travel Company.
 Business Travel: - People significantly opt for hotels which are equipped with full
facilities pertaining to the needs of customers who want to work comfortably (Hudson
and Thal, 2013). They search for hotels who are providing various business centres, Wi-
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