Integration in Hospitality Industry Analysis

The provided assignment is an analysis of integration in the hospitality industry. It delves into various aspects such as the scale and scope of the hospitality industry, its interrelationship, and the role it plays within the sector. Additionally, it explores vertical and horizontal integration measures within firms operating in this space, examining the impact of integration on these businesses and their responses to the consequences that follow.

HOSPITALITY PROVISION IN
THE TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
A. Discussion about scope and scale of hospitality industry and define its interrelationship and
examine the role of hospitality function.................................................................................3
TASK 2 ...........................................................................................................................................5
A. Analyse hospitality integration with example. Define how horizontal and vertical
integration in industry affects hospitality business................................................................5
B. Impact of integration and how organizations respond to the consequences of these vertical
and horizontal integration (2.2)..............................................................................................7
D1. Critical assessment of the vertical and horizontal integration and draw conclusion on basis
of impacts laid........................................................................................................................7
TASK 3............................................................................................................................................9
A. Rational for new hospitality business or service outlining the product service concept...9
M3 Develop coherent and logical principles in development of restaurant and bar at Hilton
resort, UK.............................................................................................................................10
B. Develop and produce a project proposal for developing restaurant and bar with the resort 10
D2 Undertake activities to plan, manage and organise the development of proposed business
..............................................................................................................................................11
D3 Effective thinking in unfamiliar context with financial feasibility of hospitality business11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Travel and Tourism sector has been a popular investment sector in recent times, as it
has been generating a lot of revenue for the stakeholders. In addition to this, Hospitality
business is also one of the fast-growing business around the globe.
Hospitality provision defined as various rules and regulations and it provides variety of
services to the customers (Carpi and Pınar Şenoğuz, 2019). It is very assistive in order to
understand the roles and responsibilities to the entity. Thus, it is a business that must go hand
in hand. Therefore, it deals in services as accommodation (hotels, motels, lodging, customer
services), transportation, food and beverage (restaurants, conferencing, banqueting, events),
recreation etc. Hence, tourism facilities in travelling diverse business activities in diverse
destination. It is inclusive of event planning, theme parks, transportation within the tourism
industry. Hospitality is one of the fastest growing industries in world today. As the hospitality
sector is one of the fastest growing industry, it will face a significant amount of challenges that
will help in suitable planning of the operations and services that are offered by the organisation
in a significant manner.
The present report is based on business activities of hotel Hilton and it is global brand
that is engaged in services of hotel and resort. It is British based company. This is a global
brand that engaged in American multi-nation hospitality company. It is a public-sector enterprise
which operates in hospitality sector. This is one of the most advance and most luxurious hotels
all around the world. Founded in May 1919 by Conard Hilton, the company now own about more
than 5, 500 hotels, resorts and other hospitality property in about 85 countries which caters the
customers of both, business and leisure purpose and is headquartered in Virginia, USA. The
firm is known for its Hilton Honours customer loyalty program that provides the loyal customers
with free wi fi, key less entry and ability to choose rooms from mobile app. In recent FY 2018,
the company had the revenue of US$ 8.90 billion with total assets worth US$ 14 billion. The
company had a work force of about 169,000 employees from all around the globe. The net
income of the organisation is US$ 764 million. The company offers the luxury and other

hospitality based services under a wide range of brand name. It is one of the largest hospitality
business organisations in world.
Therefore, report will cover the following things as scale and scope, integration in
hospitality sector organisation, horizontal and vertical integration and to define that how does
this all affect the hospitality business sector. Lastly, advantage and disadvantage of both
integration and define its impacts and consequences to enterprise.
TASK 1
A. Discussion about scope and scale of hospitality industry and define its
interrelationship and examine the role of hospitality function.
Hospitality industry is a broad group of businesses that provides service to various
customers and this is firm that mainly focused on satisfaction of customers and this providing
specific services to customers (Duhan and et.al., 2019). Therefore, the scope of the hotel Hilton
refers to the wide range of businesses that provides services and facilities. It has also helped to
understand their roles and responsibilities to the firm and that can be meet in more effective
manner.
It is firm that is belongs to key industries and huge growth prospectus in job. Therefore,
main Scope of hospitality industry is to provide facilities as accommodation, food and beverage,
entertainment and gaming and related products. Therefore, the working of hospitality
businesses is defined in below in context manner as-
 Lodging accommodation- It is one of the wide sectors of hospitality business that
ranging from bed & breakfast enterprise (Jones, 2019). Therefore, customer services are
indispensable in providing accommodation services. Hence, the factor as efficiency,
integrate comfort and world class amenities are the core foundation that will affect the
operations of Hilton Hotels. The customer must have provide effective services so that
growth of the hospitality business can be sustained for long tenure.
 Food and beverage- It is one of the crucial sectors from among 5 different sectors in
hospitality industry. Therefore, food and beverage industry are further sub-categorised
into niches. Hilton Group is well known to provide its customer with high quality and
luxurious food products. It is crucial to provide high quality food in order to enhance the
sustainability of the enterprise.

 Travel and tourism- It is one of the vast sectors of hospitality industry and there are
several key players (Morgan and Pritchard, 2019). This is industry that is inclusive of
trains, airline, cruise ships etc. Hence, travel and tourism are backbone to the hospitality
industry. Travel and tourism facilities like keyless entry, room selection and extra air
miles are rewarded to customers with the Hilton Honors loyalty program. Thus, travel
and tourism sector include-
Tourism management- It is the leading international journal for all planning and
management of travel and tourism. This takes the interdisciplinary approach and
includes planning and policy aspect of international, national and regional tourism.
Tourist- This is defined as crucial sector that has impact on development over the
country economy. Thus, main benefits to its provide income generation and creation for
the jobs.
Transportation- It is the integral part of the tourism industry. Thus, travel and tourism
services are all about the tourism and travel services. Therefore, the efficient
transportation reduces the cost in many economic sectors.
Attractions- Tourist attraction mainly include as to attract the tourist and it requires some
form of investment by the government. Therefore, it is inclusive of the natural features or
destination that are popular with tourist.
Tourism service- Tourism and travel related services inclusive of intangibility,
inseparability, perishability and variability. Henceforth, tourism service includes airlines,
car, hotels and travel insurance etc.
Mice- It is the market that refers to the specialised niche of group tourist that dedicated
to planning, booking and facilitating the conferences and other events.
 Event management- It is an emerging sector of hospitality industry. Hence, there are
many events, and these are inclusive of weddings, conferences, concerts, theatre
productions etc. Therefore, event management sector has become very popular. Hilton
Hotels are well known to host many well-known events like golden globe, soap opera
etc.
Accommodation- It is one of the basic need for the tourism activity. Therefore, accommodation
services offer friendly and helpful advice on housing and also aids to find out the most suitable
accommodation services. Therefore, there are many types of accommodation services as-
 Motels- It is accommodation that usually features as selection of the studio, two-
bedroom units etc. It is ideal for the most budget conscious customers.

 Lodges- This is defined as small house and it has park on the gate side. This is the
place that offers the inexpensive overnight accommodation with some basic amenities.
 Guest house- The Guest house range from the low budget rooms to the luxury
apartments. It offers separate facility from main home and designed to provide
accommodation for visitors.
 Budget hotels- It is an establishment of the building in which people pay for room to stay.
Budget hotel defined as services and amenities that are usually given to provide more
comfort facility at high price such as multi cuisine room, mini bar etc.
Role of hospitality function-
Hospitality managers must possess skill in leadership, communication and problem
solving in order to carry out the task in better and effective mode. Thus, primary role of Hotel
Hilton is to provide service that aids to generate profit for the owners. Entity can have
competitive advantage with help of providing better experience to guest.
Interrelationship between Hospitality and travel and tourism-
Tourism business can be defined as one of the crucial aspects of hospitality industry.
Therefore, hospitality is the industry that offers variety of services as accommodation,
restaurants, transportation and wide range of leisure activities. Hence, hospitality sector
enterprise like Hilton Hotel will provide recreational facilities to customers of travel and tourism
sector. It is an industry that offers services that usually cost some extra income to enjoy and it is
inclusive of things like hotels, restaurant, transportation and leisure activities. Furthermore,
hospitality generates revenue for local economies and this directly connects with many hostels,
restaurants and entertainment venues.

Thus, business as tourism can stimulate the building of infrastructure such as roads and public
transportation. It is both the vast industry with different career path. In addition to it, hospitality
industry is vast, and both aims to keep guest engaged in order to conduct the business to grow
and prosper effectively (Carpi and Pınar Şenoğuz, 2019). Tourism is the industry that not only
contributes towards economic activities, but it is also helpful as it generates more employment,
revenues and plays one of the significant roles in development. Therefore, the purpose of
hospitality business is to provide better and effective services to guest in order to delivering the
lasting experience. In this, it can be said that tourism enhances the demand for the hotel.
Tourism developed area have higher demand for the hotel. Thus, tourism is the act of visiting
places for the enjoyment purposes.
TASK 2
A. Analyse hospitality integration with example. Define how horizontal and vertical
integration in industry affects hospitality business.
Business integration is the strategy whose goal is to synchronize information technology.
Under travel and tourism company owns or control more than one part of distribution process.
It is term that is defined as an action and process of integrating so that all activities can be done
effectively. Therefore, it can be stated that integration can be termed out as to bring effective
and efficient cost advantage to enterprise (Duhan and et.al., 2019). This is effective term that
aids to build strong and fruitful relationship with the customers to promote the sales of goods
and services. Integration leads to enhance the global exposures. The negative impact of
integration must be implied to eliminate the barriers that mainly restrict the movement of goods,
services and factors of production. Therefore, hospitality industry develops integrated
technology that aids to driving sales and marketing performance in travel and tourism industry.
Thus, integration is of two types as:
Horizontal integration- It is the integration that brings competitive strategy that can be used by
the companies. This is defined as academic definition is that horizontal integration is the
acquisitions of business activities that are established at the same level of the value chain in the
different industries. Therefore, this is term that is defined as acquisition of related business with
similar business in other country. In addition to it, Hilton can have horizontal growth by the both
internal as well external expansion with the help of merger and acquisition (Morgan and

Pritchard, 2019). Therefore, there are some example of horizontal integration defined in below
context manner as Media firm has company ownership of radio television, books and magazine.
Advantages of Horizontal integration-
There are some following benefits by enterprise that horizontally integrate as-
 Economies of scale- This can be achieved by selling more of same commodities and
example is as geographic expansion.
 Economies of scope- It is needs to be achieved by sharing resources common to differ
product and services.
 It is helpful in enhancement in market power.
Vertical integration- It is one of the competitive strategies in which firm takes complete control
over one and more stages in production or distribution of commodities. Therefore, Hilton opts
vertical integration that ensures full control over supply of the raw materials to manufacture the
products (Porcu and et.al., 2019). This is the strategy in which firm can able to control the more
than one stage of the supply chain. Therefore, it can be defined as backward and forward in
nature. It is used to have expansion of entity by gaining ownership of entity. Integration has
helped to Hilton to advance the growth so that long term sustainability can be maintained.
However, the enterprise as Hilton has adopted these integrations in terms to have
complete diversification of product and services. Thus, horizontal and vertical integration is
competitive strategy that used by firm to consolidate their position among competitors. The
tourism industries play their operation in number of interrelated business sectors. In order to be
successful and to expand the business activities this entity needs to undergo with the
networking across and this kind of integration called as vertical integration (Muscio and Ciffolilli,
2019). Therefore, Hotel Hilton must have adopted vertical integration in order to maximise the
profits of the working enterprise. This is firm that also works as to provide value to its customers.
This firm is known as the market leader in the tourism industry and one of the core
objectives is to ensure the cost effectiveness, occupancy, cash tax benefits as well corporate
streamlining. This helped the company to be the market leader in the tourism sector. Integration
proved to be helpful for the firm to have significant control over the market that aids to provide
company with economies of scale and this has minimised the threat regarding competition. With
help of adopting vertical integration aids to firm to boost profit and allow companies to be more
immediate access to consumers.

B. Impact of integration and how organizations respond to the consequences of these
vertical and horizontal integration (2.2)
The integration factors that are been implemented within the selected firm will help in
improving the operations related to hospitality services in Travel and tourism industry. The
integration process will help in proper planning of service measures which are been carried out
by the organization. Besides this, the integration process which is been carried out by the
organization will lead to carrying out of operations and setting up of suitable measures which will
help in carrying out of vertical and horizontal integration within the hospitality enterprise. Hilton
Group will look after the proper planning of these operations and carrying out of services which
will lead to setting up of hospitality services. As the hospitality sector will include a variety of
services and facilities that are been provided to their customers, the vertical and horizontal
integration measures which are been taken in firm will help the Hilton Resorts to cater a wider
range of needs of their customers. This will not only help in strategic management of the
organization but also lay a range of operational enhancements within the resort. It will not only
increase their size and scale, but also improves the product portfolio, reduce competition and
increase the accessibility to new customers. Besides this, the supply chain of Hilton Resort is
improved with rise in profit count and help in improving their distribution channel. All these
measures will lead to rise in growth and development of the chosen hospitality enterprise.
The response of the enterprise towards the consequences laid by vertical and horizontal
integration within the firm will depend on the extent of improvement or enhancements that are
been made within the organization. As the horizontal and vertical integration applied within the
UK based Hilton resort has yielded positive outcomes, the response of management and staff at
the enterprise will be positive in nature. The rise in sales and service quality, improving the
marketing of goods and services offered and providing high quality after sales service. Other
than this, the accessibility of new customers from the global scale will provide the organization
to develop a new and effective supply chain and distribution channels which will facilitate Hilton
Resorts to cater vivid demands of customers.
D1. Critical assessment of the vertical and horizontal integration and draw conclusion on
basis of impacts laid
Hereby, it can be concluded that this is process that can ensure growth or increase in
production of good and services in supply chain (Duhan and et.al., 2019). Thus, Hilton must go

for horizontal integration by the means of acquisition and mergers. With the help of adopting the
model of vertical integration aids to maximise the profits and provide value to customers.
The vertical integration aids to conduct the business practices in better manner. Thus,
hotel Hilton has adopted it as it aids to boost profit and allow firms to have immediate access to
consumers.
vertical integration
Advantages Disadvantages
Improves supply chain at hospitality firm. Low scope of further improvement due to lack
of competition.
Improving distribution channels. Sustaining core competencies is difficult.
Cost control Monopoly
Creates economies and scale Discourage entry
Increase market share Conflict, communication and coordination
problems
Increase product knowledge / marketability Corporate culture issues
Earn more from margins Cost
Reduces competition.
Helps in segregating the profits and resources
within different departments of firm (Sarkar
and George, 2019).
horizontal integration
Advantages Disadvantages
Facilitates higher production in lower cost. It is largely dependent on the efficiency of staff
and management of the organization like
Hilton resort.
Improves market presence of the organization. It may become too rigid, reducing the flexibility
to carry out operations.
Allow the organization to enter new markets. Cost

Improve product quality. Increased responsibilities
Lower costs Difficult to implement
Higher efficiency
Increased market power
Access to new markets
Economics of scale and scope
International trade
TASK 3
A. Rational for new hospitality business or service outlining the product service concept
Product and service concept can be defined as to have position its product and services
in market in terms to features, quality, price, service, distribution and differentiating elements
etc. Looking at the successful implementation of vertical and horizontal integration measures
within the organization, Hilton Resort, UK will look after the proper development and
incorporation of effective restaurant and bar facilities which will help in carrying out of the
services and catering the needs of a wider range of operations which will help in carrying out of
services which will support in developing a suitable restaurant within the Hilton resort, UK. As
food and beverage service is becoming an integral part of hospitality services and carrying out
of the operations which will help in carrying out of services that will help in developing high
quality restaurant and bar (Bourini and et.al., 2019).
Another reason behind choosing the service of restaurant and bar within the resort is
that nowadays, the customer seeks the service of food and beverage through a restaurant or
bar to be included within the hospitality service. As the product service measure like developing
a restaurant or bar at the resorts of Hilton Group requires an extensive planning, market
research, situational and competitive analysis and developing of infrastructure, the integration
will also play a very crucial role in developing the services and thus facilitates the carrying out of
the operations required to develop this service within enterprise.
Hilton resort, UK can opt for providing the local as well as the international dishes at a
reasonable cost will help in meeting out the needs and requirements of operations which will be

carried out by the organization. The incorporation of restaurant and bar service will help the
resort to increase its service product portfolio and contributing to increase in its revenue and
profitability. This will also provide a competitive advantage to the hospitality firm.
M3 Develop coherent and logical principles in development of restaurant and bar at Hilton
resort, UK
In order to develop a good and effective restaurant and bar at the Hilton resort, UK,
various coherent and logical principles can be developed that will help in proper evaluation of
feasibility of the project carried out. Logical principle of business development like conducting
marketing research, situational analysis in order to test out the feasibility of project and effective
planning is required to be carried out that will help in proper establishment of restaurant and bar
within the resort.
B. Develop and produce a project proposal for developing restaurant and bar with the resort
In order to develop a proper project proposal that is been carried out within the resort
firm will include the following attributes that will help in setting up of restaurant and bar within the
firm such as:
Market research- The resort will be 120 rooms set -up. Therefore, this entity will majorly
focus over the Morden services that equipped with high tech tools and techniques. In order to
set up the establishment, it is crucial to identify the needs and demand of the customers.
Target market: The target market will include the customers who are adopting the resort
services. The organization can opt for providing the complementary services which are been
carrying out within the organization (Sarkar and George, 2019). The main target of Hilton is to
target the customers on the basis of high upscale market segment. Besides this, as the food
and beverage industry as a higher potential of growth and development within market, it will
help in setting up of the operations which will contribute to the growth and establishment of
restaurant or bar within the Hilton Resort.
Location: Hilton Group, UK will look after the developing of suitable restaurants and
bars in all its hotels and resorts within UK on the initial phase. Suitable resources and
developing of infrastructure will be observed that will help in improving its service quality and
product portfolio.
Product and services- The hotel will provide accommodation services to the
customers. Thus, chosen enterprise must provide high quality services with affordable price so
that customer can get attracted towards it.

Operating model: It is model that defines visual presentation that defines how an
enterprise delivers value to its internal and external customers. The suitable implementation of
an operating model will help in developing a restaurant and bar within the resort (Bourini and
et.al., 2019). An operating model supports the assessment of suitable workflow and process, IT
operations and developing a suitable infrastructure and investment measures which will help in
proper planning of staffing a manager, chef, bartender, waiters and supports staff for a
restaurant and bar within resort.
Designing the assessment of the market potential: The management of Hilton Group
will look after the carrying out of development of a restaurant with bar service within the resort.
Effective market research and assessment is been carried out that will help in carrying out of the
services and setting up of the operations which will help in carrying out of operations which will
help in establishing of restaurant and bar within the resort. Besides this, the management of
Hilton group will lead to carrying out of situational assessment for the project development and
planning development accordingly.
Suitability and acceptability criteria: As the situational assessment will be carried out,
the feasibility and suitability of developing restaurant will be tested, and effective planning of the
operations related to development of restaurant and bar within the resort by Hilton Group. It
helps in improving effectiveness of infrastructure development (Restaurant and bar) within the
organization.
Licencing- The all operation can be start after getting the licence. Therefore, licensing aids
to offer the service to customers in legally manner.
D2 Undertake activities to plan, manage and organise the development of proposed business
Wide range of activities like effective market research, feasibility and situational
assessment study and resource planning will be carried out that will help in carrying out of
services and setting up of the operations which will help in developing a high-quality product or
service which will help in development of the proposed business. This will help in carrying out of
services regarding establishing a restaurant and bar within resort.
D3 Effective thinking in unfamiliar context with financial feasibility of hospitality business
Looking at the scale and scope of Hilton Group, this can be said the organization (Resort
firm) has the financial feasibility to effectively develop the restaurant and bar within the resort or
hospitality enterprise. The organization can opt to use its personal financial resources or can
collaborate with other food and beverage enterprise for this purpose (Wan, 2019).

CONCLUSION
On the basis of effective evaluation carried out this can be said that hospitality industry
plays a very crucial role in the setting up of the operations within travel and tourism sector. The
report covers the details of scale and scope of hospitality industry with the interrelationship and
role of hospitality industry. Besides this suitable integration measures related to hospitality
organization and other relevant enterprises are analysed with details of vertical and horizontal
integration measures which are carried out within the firm. Also, the impact of integration and
response of the consequences of integration are carried out. Suitable rationale related to
development of a new business product/ service is presented with the evaluation of suitable
business plan and other activities carried out for suitable growth and development of business
idea or product such as restaurant and bar within the resort.

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