Hospitality Provisions in the Travel & Tourism Sector
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This document discusses the interrelationship between hospitality and wider travel and tourism business, implications of integration to the hospitality industry, and provides a rationale and plan for a hospitality business. The document focuses on the case of TUI Group in the United Kingdom.
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Hospitality Provisions in the Travel &Tourism Sector
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Table of Contents INTRODUCTION......................................................................................................................4 TASK 1......................................................................................................................................4 1.1 discuss the interrelationship between hospitality and wider travel and tourism business4 TASK 2......................................................................................................................................5 2.1 analyse the implications of integration to the hospitality industry..................................5 2.2: Discuss how integration has affected a hospitality business...........................................6 TASK 3......................................................................................................................................7 3.1:Develop a rationale..........................................................................................................7 3.2: Develop a plan for a hospitality business including the operational requirements.........8 CONCLUSION........................................................................................................................10 REFERENCES.........................................................................................................................11
INTRODUCTION Travel and tourism are the part of hospitality industry and it is one of the fast growing industry. As people travel to spend vocations, to attend the business meetings, sports and other programmes. There are various services which are provided by the hospitality industry which involves accommodation, transportation, food and beverage and other entertainment facilities. It is important for the travel and tourism business to fulfil the expectations of consumers by providing quality products and services. To better understand this concept TUI group has been chosen which is a travel and tourism company and it belongs to United kingdom. As organisation has a collaboration with travel agency, hotel, airlines & ships. It makes control over 1800 travel agency & 300 hotels & resort. In this report, there are various topics has been covered such as: interrelation among hospitality & wider travel and tourism business, implication of integration to the hospitality and how it affects the business. Apart from this it also discuss about to develop a rationale for the chosen project and to develop a plan for a hospitality business. TASK 1 1.1 discuss the interrelationship between hospitality and wider travel and tourism business There is an interrelationship between hospitality and travel and tourism business. As the travel & tourism comes under hospitality industry and in the success of this industry tourism plays an important role. It is most necessary for the companies to provide better products and services in order to satisfy the needs of consumers. It involves: transportation, event planning, theme park etc. As the facilities and services which are provided by the hotels are includes, club, bar, pub, swimming pool etc. There are various facilities which are provided by the UTI Group as per the requirement of consumers. It is important to understand the needs of consumers so that it can generates more revenue as a result organisation will able to capture more market share. To sustain for a long term it is important for the tourist industry to provide the products and services as per the needs of travellers and that they become loyal with the corporation (Iancu and et. al., 2013). There are various companies which are involved in this sector because of high growth and scope in the business. It is require for the company to provide quality services at
affordable price so that consumers can retain and does not go outside to find any alternative or substitute. As the tourism industry provides various services and facilities to the tourist and so that they feel happy and get better experience. The services which are provided by the UTI group are based upon demand and as per the budget of the consumers. As hotel and travel industry both are linked to each other. As an instance, if there are family members who want to travel at different locations and for that purpose they have to make contact to the specific tour operator of United Kingdom which provide best package with quality services (Ghany and Latif, 2012).The services which are provided by it as food and beverage, accommodation and other facilities. As hotels will provide the food & accommodation to the tourist and with it tour cannot be possible so it can be said that hotel and travel industry are interlinked to each other. As TUI is famous company who provide the services which are related to the travel and tourism business. It provide travel and tourism services and provide the facilities which are related to accommodation and food because it has contact with the hotels and while tour the tourist visit the hotel and get the services and facilities as per their desire so that their needs can be satisfy. As the TUI group has contact with the Intercontinental hotel group which provide various facilities and services to the tourist of TUI Group which involves, accommodation, breakfast, lunch, dinner, pool, bar, swimming and other facilities as per the desire of consumers. So it has been analysed that hospitality and travel and tourism business are interlinked with each other and it contribute in the growth of hospitality industry (El-Gohary, 2016). TASK 2 2.1 analyse the implications of integration to the hospitality industry Integration is beneficial for the growth of company and generally corporation choose this so that it can maximize its reach by focusing on economies of scale as a result they can lower its operating cost. To increase the reach and minimize the cost the production there are various companies which prefer outsourcing so that their time as well as money can be save and TUI Group can make integration which is helpful for the growth of company and there are two types of integration which can be seen in the organisation which involves: vertical integration and horizontal integration (Lam and McKercher, 2013).When a company buys its suppliers or buys other corporation in distribution chain than it is consider as vertical integration. It is beneficial for the business of corporation because it minimize the cost and maximize the revenue. For that purpose company can provide training to the employees
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rather than employing from outside. As organisation will emphasis to deliver quality products and services and focuses to maintain standard of services. As an instance, company try to provide the services to another city and it has good reputation so consumers will attract towards the organisation. TUI Group has focuses to provide better services in order to satisfy the needs of consumers so that they become loyal and feel great experience with the corporation. For that purpose company can merge with hotel Magic life and it is helpful for both because maximum profits can will be generated which provide help to achieve the objectives. After this integration name of company will be TUI Magic Life and this is successful when innovative technology has been used by the organisation which is helpful to make the supply chain more stronger and provides the requirements of consumers by delivering the quality products and services (Airey and Gross, 2015). Horizontal integration: In this type of integration two companies integrate to make bigger corporation but is required that products have to be similar in nature and both companies have provide similar types of products and services. As an instance, TUI Group has merged with First Choice Airways to make bigger company. As a result its sales will increase which is helpful the capture more market share and help the company to maximize the revenue. As an instance, Company can make integration with Edward House Hotel so that it can improve accommodation & service and other facilities which are require to provide in order to fulfil the desires of consumers (Martínez and Rodríguez, 2013).This is beneficial for the growth of corporation and business will expand and large number of people will attract towards the company. As the resources will increase and consumers will get better facilities and services as a result their needs can be satisfy which help the corporation to improve its brand image. There is more competition in the market because of high growth in this business so if two companies will merge than its strength will be double which provide help the corporation to maximize its profits and expand its market share and to achieve its goals and objectives within stipulated time period (Abubakar and Ilkan, 2016). 2.2: Discuss how integration has affected a hospitality business In hospitality sector travel and tourism sector plays a vital role, As a huge amount of revenue is generated from the sector.The main reason of adopting integration is to get global exposure, that why company focuses on integration. There are mainly two types of integration –Horizontal and Vertical.
Horizontal Integration– A process by which a company can ensure the rapid increase or rise in production of goods and services by being a part of the same supply chain. They can opt for horizontal integration by means of merger and acquisition. Vertical Integration– These is different from horizontal integration. Different supply chain are responsible for the production of different goods and services. With the help of integration the company was able to get a significant control over market and by that they were able to get cost advantage as well. After associating with the top companies, TUI Group was able to get the advantage of economies of scale and by that they were able to avoid the competition by restricting the entry of new firm via economies of scale which was only possible after integration. As the company have the market control, they become price maker. They had a control over prices and other companies had to alter the pricing according to the companies pricing. Tourism success also depends upon the branding techniques by different companies in the industry. Providing different hospitality services with the name of one brand helps a company to retain their old customer and it also give them assurance that the service rendered by the company will not get compromised. Brand names gives customer loyalty and if a brand is for long period the chances of more loyal customer are always there. Globalization not only provide global exposure to a company but it also provide opportunity to generate revenue and extract an untapped market too. Trade barriers are also reduced with the help of globalization. Furthermore, the European countries benefit from the products and services when the trade regarding the same occurs within the Eurozone which in turn proves to be beneficial for the accommodation and the catering providers as well. The organization in travel and tourism sector generally uses horizontal integration. TASK 3 3.1:Develop a rationale If a company had to develop rationale for their business they need to analyze the target market first. By target market we mean the public who are really interested in the goods and services of the company and company sees a scope of doing business with them. If the company can analyze the target market and the necessary services a company can place for that target market, rationale can be prepared after that. In this regard the destination of the hotel must be identified as the location can impact over the cost and the resources along with the type of holiday destination.As the company deals in travel and tourism the target market in that case will be both male and female, even children will be considered in the target
market as by tempting children a company can convince the parents also for travel and tourism. As travel and tourism is done out of hobby, for refreshment, for luxury basis. The target market in that case can be premium customers who are high income group people and are ready to spend money. Company is mindful of that in most the cases travel is done in group. A group can be of friends, family or in any form so targeting is done by taking that into consideration as well. On considering new location within UK the hotel can approach the target market through the analysis over the demographic factors along with socio-cultural factors within the region. Proper location will be efficient for attracting both inbound and outbound customers. Various lucrative offer can be offered by the company. They can offer free breakfast in hotels or some discount for customer, so that they can gather the attention of the customer and by that more application can be received by the company as the interested customer may increase because of those offers. Different offers in the transport like airlines and other facilities will be efficient to attract outbound tourists. The local tourists can be approached with business facilities like conference, banquette etc. Some benefits are given to those customer who goes for a complete package of the company which includes hotels, air tickets which means a complete package. 3.2: Develop a plan for a hospitalitybusinessincludingthe operationalrequirements Customer satisfaction or services is one of the most important component which needs to be taken care by the company. The information are provided to customer on time so that no conflict is aroused and customer loyalty can be maintained. The market that is targeted is of premium customer as travel and tourism is done by the people who have a purchasing power so company try to entertain those customer only. As they know they are ready to spend money so the services which are provided to them is on premium basis. As they are providing service to the people who have purchasing power, they should not compromised in the services provided by them. As one thing is clear money is not a problem in this case so they should not think of compromising in any case and try to provide what is best for the customer. Company should make sure that proper training is given to the employees also. As employees are the face of the company so they are carrying the goodwill of the company. Any fault from their part may hamper the company, so company should train the employee regularly. The main focus behind the training is development of employee, so that they know the best way to handle any tricky situation and they know how to satisfy different types of customers and build relations with them. A healthy relation with the
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customer is a favorable situation for any company as it also spread word of mouth and it may result in new customers for the company. Funding for the same can be raised by the company through shareholders, company can put their money also whichever they find feasible or possible at that moment of time. If s business don’t want any hindrance in the operation they should opt for licensing in various services provided by them. The ambiance should be such which attract customer and that can be done with creative measures and some innovation. Health and hygiene is also one factor that should be taken into consideration by the company. The whole reason behind an attractive ambience is that customer should choose the company over their competitors. As the company is well aware about that tourist from different places will come to avail the services, so culture of the company should be of reflective nature and tourist should feel comfortable and that can be made possible by implementation of their own culture. Providing various services with a brand name may help a company as the loyalty of a customer to a brand can be attained. The external environment should also be taken into consideration as the tourist should get all the facilities they thrive for and that can be made possible by giving them a good exterior also along with interior. Promotions should be done so that the market know about the company and the services provided by the company. Staffing by functional areas: there are different functional areas within the hotel such as: Management team as well as managers Financedepartment Line managers Housekeepingdepartment Front line Kitchen staff such as chef Securitydepartment Conyence and transport Area management While doing staffing also all the factor should be taken into consideration. Proper background check of the employee should be done. All the amenities should be given to the employee so that they are in good space and while doing their job they are giving everything to it. Employee should be recruited from various part of the world so that the company can get the cultural diversity in their management too. As the company had to handle the customer from different backgrounds, recruitment should be done taking that point into
consideration. Qualification required for a particular job should be checked with the applicant and they should be interviewed accordingly. It is obvious that different type of qualification are required for different employees so that should be maintained properly. Company should make sure managerial experience is utmost for hotel job and a person who have that only those would be qualified for such type of jobs. All the conflict related to the season staffing should also be taken care by the management as in travel and tourism business staffing are also done on basis of seasons. Staff should be sophisticated and should know how to carry themselves in front of customers. CONCLUSION As from the above report, it has been concluded that it is required for the travel and tourism business to fulfil the requirement of consumers by providing quality products and services. As hospitality industry and travel and tourism business are interlinked with each other. For the growth and success of a company integration is very helpful. Because strength will be double which provide help the corporation to maximize its profits and expand its market share. As integration affect the industry in positive way because it help the organisation to increase its profits and achieve the objectives as per requirement. To accomplish the goals it is important to take effective decisions which are linked to the target market. It is important to develop business organisational structure in relation to the human resource allocation.
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