Analysis of Hospitality and Travel Industry

The provided document is a detailed report on the hospitality and travel industry. It begins by discussing horizontal and vertical integrations in the context of Thomas Cook, highlighting how these concepts affect the sector's performance. The report then delves into the rationale for the hospitality sector, outlining the concept of product-services and presenting a project proposal based on market analysis and development stages.

Hospitality Provision
In The Travel and
Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1. Interrelationship between hospitality and wider travel and tourism business......................3
TASK 2............................................................................................................................................5
2.1 Implications of integration to the hospitality industry..........................................................5
2.2 Affects of integration on hospitality business.......................................................................7
TASK 3 ...........................................................................................................................................8
3.1 Development of Rational for a new business project............................................................8
3.2 Project proposal based on market analysis............................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality provision is the set of rules and regulations which provides services to
customers. It also also allows firm to provide services so that it may meet the requirement of its
customers in a effective and efficient way (Hospitality provision in the travel and tourism sector.
2018). This report is based on the hospitality provisions in travel and Tourism Sector to which
Thomas Cook is taken into consideration. It is a hotel industry which is working globally in the
area of Hospitality, leisure and Tourism consulting. The company focuses on providing quality
to its customers. This report include the scope and scale of Thomas Cook within travel and
tourism sector, its interrelationship and role of hospitality function. Integration in Hospitality
sector and the affect of horizontal and vertical integration in this industry is explained. Apart
from that impact of these integration, decision of organization to respond to the consequences of
integration is also explained. In the end a rational is developed for a new hospitality business and
a project proposal is also produces in this report (Boniface, 2016).
TASK 1
1.1. Interrelationship between hospitality and wider travel and tourism business.
A diversified range of services is provided in UK in travel and tourism sector. This
business has provided a range of services to its customers such as food, accommodation,
adventure events, airlines and so on. A large number of people wants to spend their time in
enjoying holiday and relaxing somewhere with their family or relatives. For doing this travel
agents are available for them which provide them affordable tourism package. There are various
industries in UK which provides this service to accommodate them in a healthy environment and
food. With the help of providing these services, this industry is growing on a regular basis. There
is a great scope and scale of this industry in future which is described below:
Scope and Scale of Hospitality Industry
Employee tourism and Employment opportunities:
This industry is growing in a rapid speed and hence it provides better solutions to the
visitors and clients. For providing better solutions to clients this industry is providing a huge
number of vacancies and attracted more workforce to join. This industry also helps in increasing
the employment in this sector because a large number of skilled labour is required to serve better
services in future.
Increasing Tourist:

As much as the hospitality sector grows, the number of tourist also increases. This
increment of clients in the tourism sector helps the area to develop accordingly. This will attract
more tourist to the destination. Increased number of tourists helps the economy of that country to
grow better(Dickinson, 2014).
International and communication technology
A research is made to find out the information regarding the tourist destination with the
help of travel agencies and tour operators. Various packages with prices are provided to the
tourists with the help of websites and online portals. Thus it provides various facilities at only
one click.
Role of Hospitality Industry
An important role is played by the hospitality industry in the business operations and
tourism firms. It provides different types of facilities at a very reasonable price. At the time of
providing different services the client focuses on the services provided by the hotel such as clubs,
accommodations, transportation, food quality, parking area and so on. Apart from the food, this
sector also serves beverages and drinks to its customers. These facilities are provided by almost
all the tourism companies and customers are using these services smoothly. In spite of these
services provided by tourism industries, it also provides first-aid at the time of emergency.
Relationship between hospitality industry and tourism sector
Both the hospitality and tourism sector focusses on providing services to its customers.
These sectors deals in providing services rather than goods. The revenue of these sectors depends
on the customers because as much service they provide to the customers, as they generate
revenue. The main idea of these sectors is to satisfy the customer need and requirement. Both
these sectors provide better services to their customers to make worth for the money spent by
them. Therefore both the hospitality and tourism sector encourage each other by implementing
better coordination. Apart from this, both these business provides a growth in the GDP of UK as
well as provides better chances for employment to the skilled labour. In spite of the above
relationship there are few aspects also which describes relationship of hospitality and tourism
sector which are here as under:
Package Holidays:

If a customer requires package holiday, then it does not need to accommodate in a five
star hotel. The manager of hospitality industry focus on providing better experience to its
customers so that their need can be fulfilled accordingly.
Business travel
Hotels in UK are providing different services such as Wi-Fi facility, business centres,
shopping complex, internet conference and meeting halls etc. to work smoothly. There are also
better services provided in this sector which are cheaper to the middle and average class
customers.
Aviation
Success of the aviation industry is highly reliable on the availability of customers and
accommodation. It is just because the hotel which have good revenue tie-ups with the aviation
industry to capture the customers. This will provide both the aviation and hospitality sector a
great revenue. Normally, at the peak time when hotels get full there is a possibility of
combination of these two sectors. Because failure of booking in hotel leads to cancelling the
ticket of aviation. Budget airlines charge additionally to serve beverages and drinks. Apart from
that there are various flights and hotels which provides luxury services to their clients and charge
them accordingly.
TASK 2
2.1 Implications of integration to the hospitality industry
Integration is a essential part in hospitality industry for sharing the resources as well as
the potential consumers. Organisations desires to accomplish their shared goals through the use
of updated tools and technology to enable companies in improved coordination between them.
Thomas Cook is also using integration with different hotels and transport companies for sharing
the resources. Such integration will help in expanding the company and through this the
company can utilise the shared resources in a better way. The desired goals and objectives can be
accomplished easily through integration (Getz, 2016). Companies use two types of integrations
i.e. horizontal and vertical integration which are described below:
 Vertical integrations: This is the process of purchasing suppliers or company which
comes in the distribution chain. It results in low cost of services which automatically
converted into profit for the company. In such integration, Thomas Cook get into an

acquisition agreement with other companies which are in the distribution chain of
Thomas Cook. By this , company gets a competitive edge over its rivals in the same
industry which will increase the market share. It will help the Thomas Cook to
differentiate its services from other competitors in the industry. Thomas Cook merger
with Kuoni Group targets to provide high quality of services to its customers. The
company wants to provide services of same quality at all its places. It will leads to
increase in customer base as well as increase in market share. Both of these companies
has same goals and objectives to accomplish by providing quality standards of travel and
hospitality. This integration is worthless without the implementation of updated tools and
technologies along with improvements in their supply and distributor chain..
Management of Thomas Cook is fully responsible for evaluating the operations and
coordination between these integrated companies (El-Gohary, 2016).
Employees are hardly understanding the new policies and strategies implemented after the
integration. This will leads to dissatisfaction among employees as well as they will also face
issues in their activities due to low level of understanding. It can be possible that employees will
find it difficult to adopt the new culture or working style of other company. It will also result in
lack of communication and coordination with other employees.
 Horizontal integrations: This process involves integration of two or more organisation
to make a new and bigger organisation. After such integration, both companies provides
same products and services to their customers but with improved version. For example-
Thomas Cook merger with Travel Corporation limited will provide improved and high
quality services with proper transport facilities to their customers which will increase the
satisfaction among employees due to these convenient facilities. It is an excellent way for
improving revenue and expansion of the company. Thomas Cook can further integrate
with different hotels and travel agencies for providing better and convenient transport as
well as accommodation facilities to their potential customers. Horizontal integration will
help the company to increase the brand image of the company in the long run. Horizontal
integration is suitable for improving the quality and resources of the business.

2.2 Affects of integration on hospitality business
Integration helps in getting an competitive edge over the competitors in a shared market.
Main focus of integration is on Setting prices of services and Sharing the resources. The affects
of integration on hospitality business are given below: Cost Integration- Cost integration affects the hospitality sector up-to a great extent.
Vertical and horizontal types of integrations allows Thomas Cook to invest huge amount
of money in their businesses. Thomas Cook had invested heavily on the updated tools
and technology in order to provide improved quality of product and services to their
customers. Company can set their prices of various services and products together for
enhancing the growth and profit of the firms. Merger of Thomas Cook with Luxe Asia
which is a Sri lanka based travel agency will aims to provide better travel packages and
suitable accommodation (Manhas, 2015). Technology- It helps companies to adopt suitable technological techniques and tools
based on the demand of market and customers. Updated technology is required for
enhancing the productivity of operations of Thomas Cook. Such technological
advancements provide convenient and effective ways to coordinate and communicate
with consumers easily. Companies can coordinate effectively with each other using such
technological aspects. It will also helps in providing innovative and effective ideas for
accomplishing the business goals. Lack of Knowledge- Thomas cook has integrated both horizontally and vertically which
allows him to enter in a new segment of market. Due to these integrations, various
changes in strategies and polices are taking place in the company. Company should need
to determine their customers who are looking for their services. Due to lack of
knowledge, staff of Thomas Cook is facing issues in handling clients. Management of
Thomas Cook should need to provide required training for equipping them with right mix
of skills for handling and better coordination with clients. Globalization- . Integration of Thomas Cook with other companies is worthless without
the knowledge of various factors such as rules and regulations, terms and conditions and
culture. Without the knowledge of such factors, it can face huge problems in developing
policies and strategies at global level. It is a huge challenge for the company to provide

accommodation to many people of various cultures, beliefs and country. The expectation
of customers should be met to keep retaining them in future.
 Quality- Integration influences the quality of products and services in both positive and
negative ways. Improved quality of products and services is not guaranteed after merger
as the quality depends on employees experience and utilisation of shared resources.
Mutual understanding and coordination among employees is necessary for improving the
qualities which are offered by the Thomas Cook.
TASK 3
3.1 Development of Rational for a new business project
Thomas cook is a company who wants to enter in the food and beverages as they
identifies various opportunities and benefits in this sector. Management of Thomas cook has
analysed that people are expanding their more income on foods without focusing on prices such
people prefers quality products instead of prices. So that, the company wants to invest in this
sector with opening a new restaurant for providing customer a new quality of food taste. In
current scenario, there are various customers present in the market place who wants only quality
without taking so much tension about prices. Thomas cook is targetting upper class customers
who spent much for maintaining their life style (Law, 2015).
Management of Thomas cook had chosen London for their restaurant due to the
availability of upper class customers who are visit here from different countries to using their
time. Thomas cook has responsibility to provide quality and tasteful products to this type of
customers. For this, management of Thomas cook has to develop a strategic plan through various
media platforms such as offline and online. They have to offers discounts and coupons to the
customers in order to increasing the number of customers. It is essential to getting attention of
people and raise awareness about the T.C 's offerings. It may help in reaching to potential
customers with establishing a good reputation and position in food and beverages sector of UK.
Attractive Menu cards and quality products will attract the number of customers and modifies
them into regular customers. It is essential for Thomas Cook to implement new technologies in
designing structure of products and offerings. It has to identifies new opportunities such as
customer satisfaction. Stability of government, increasing number of visitors in London will gave
an opportunity to Thomas cook to setup a new restaurant at this place.

3.2 Project proposal based on market analysis
Thomas cook has to setup their human resource department for this venture because it
requires appropriate strategies which has to implement before starting a new business. Their
management should hire skilled and efficient persons who can satisfy the customers easily with
giving their maximum efforts. It includes three stages which is given as under:
Development- Thomas cook has to follow a well planned structure before setup a human
resource department in the restaurant. Customer satisfaction and organisational growth is the
main part which needs focus of the management before entering in this sector. It requires
energetic staff members who serve the customers as per their needs. For this, some of the factors
included in growth of product which is as following:
Concept- Idea behind the development of product plays an important role in the growth
of product as well as of company. Thomas cook wants to deliever quality products to their
customers which is impossible without using proper idea. Organisation have to understands the
changes regarding to market trends. By which Thomas cook offers healthy and hygiene products
to satisfy their customer demands. Target market- the targetted customers are related with food and beverages which is
modified according to their taste and preferences. Thomas cook targets the upper class
customers who spends more on their life style. Such people goes for quality products
rather than other cheap products. Location- The location of the restaurant is London. Company has chosen this location
due to the number of visitors from various countries who are spending their precious time
for maintaining their lifestyle. This city has a reputation in the country because of its
upper class residential. It will fulfil the needs of these customers which will brings high
productivity in company (Mason, 2015).
Design- it describes the outside and inside location of organisation or product. Attractive
interior and exterior helps in attracting more customers. Several factors influences the
performance of product and company which are discussed below: Culture- It is the basic need of organisation which is essential before starting a new
venture. Good culture of staff members at restaurant attracts more number of customers
so management of Thomas cook has to maintain their organisation culture. Visitors from
various countries have to enjoy the UK's culture during their visit to restaurant.

 Sustainability- Thomas cook has to provide better quality of products and services to
customers because they are starting their new business for this they have to gives offer
and discounts to their customers in order to achievement of sustainability in market. Interior and exterior- The physical designs of product and restaurant can be helpful in
converting visitors to regular customers. These designs will be created with well
furnishing so that, they will get more customers. For this purpose, Thomas cook has to
plan such things for maintain their designs which are glasses, proper lighting and garden
look in order to attracting more number of customers (Xiang, 2015).
Operations- It is the process of implementing development and design stage to the
product development. Operations of Thomas cook will directly effect the performance of
restaurant. More productivity can be achieved using appropriate strategies. Staffing- It is essential for an organisation to create a proper staffing plan so that the
employees of organisation can gave their maximum efforts to completing assigned task.
Various training and workshops should be provided to employees so that, they will
increase their skills and capabilities. Cultural diversity- Thomas cook has to identify various things which is related with their
working culture. For getting positive response from employees and customers. Visitors
from different countries are treated equally and unbiased. Proper plans and policies are
made by the management in order to managing their employees from higher level to
lower level. Promotional activities- Various promotional activities should be offered by management
in order to attract more customers. Discounts and coupons through social media and
public places should be made available to the customers. All these marketing strategies
will effects the behaviour of customers and they tends to attract more towards the
restaurant.
 Pricing- Pricing of the products should be done according to the customers behaviour.
Foodies management should use feedbacks from the customers for fair pricing. Also the
company should follow the rules and regulations while doing so. The targeted upper class
people emphasizes less on prices while they tend to go for quality based products.

CONCLUSION
It has been analysed from above report that hospitality and travel and tourism sector are
interconnected with each other and effects each other's performance. Both horizontal and vertical
integrations help the Thomas Cook to share the resources as well as customers for providing
better opportunities to each other. Horizontal and vertical integrations has been discussed with
context of Thomas Cook (Zeng, 2014). Different factors such as technology, cost, lack of
knowledge and quality affects the hospitality as well as travel sector. In this report, a rationale
has been also developed for hospitality sector which outlines the concept of product-services. In
the end, a project proposal has also been developed on the basis of analysis of market along with
the stages which are operation, design and development with several other factors that affects the
hospitality and travel business.

REFERENCES
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pp.124-130.
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tourism: Revisiting disintermediation from the perspectives of hotels and travel
agencies. International Journal of Contemporary Hospitality Management. 27(3).
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Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review.
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Online
Hospitality provision in the travel and tourism sector. 2018. [Online]. Available
through:<https://www.tandfonline.com/doi/abs/10.1080/15022250701880745>.