Integration in hospitality provision in travel and tourism sector

Hospitality Provision in the Travel and Tourism Sector INTRODUCTION 1 TASK 11 1.1 Scope and scale of hospitality industry with travel and tourism sector and its interrelationship as well as role of hospitality function1 TASK 22 2.1 Integration in hospitality sector companies and explain the horizontal as well as vertical integration in the industry 2 2.2 Effects of integration and modes of deciding to respond to consequences of integration3 TASK 35 3.1 Rational for new hospitality business outlining the goods and services concept 5 3.2 Produce project proposal5 CONCLUSION

Hospitality Provision in the
Travel and Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
1.1 Scope and scale of hospitality industry with travel and tourism sector and its
interrelationship as well as role of hospitality function .............................................................1
TASK 2 ...........................................................................................................................................2
2.1 Integration in hospitality sector companies and explain the horizontal as well as vertical
integration in the industry ..........................................................................................................2
2.2 Effects of integration and modes of deciding to respond to consequences of integration ...3
TASK 3 ...........................................................................................................................................5
3.1 Rational for new hospitality business outlining the goods and services concept.................5
3.2 Produce project proposal ......................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES .............................................................................................................................10

INTRODUCTION
Hospitality industry is activism business with numerous classes but customers service is
the combative component shared through all sections of industry. Hotels, travel and tourism,
food facilities and events. Travel and tourism business in one of the biggest and quickest
developing industry in the United Kingdom (Law and et.al., 2015). This sector is the largest
shares to the world economy. This study is based on First Choice. It is UK based travel operator
brand and subsidiary of TUI group. Report will discuss the scope and scale of hospitality
industry with travel and tourism sector and its interrelationship as well as role of hospitality
function. It will explain the integration in hospitality sector companies and explain the horizontal
as well as vertical integration in the industry.
TASK 1
1.1 Scope and scale of hospitality industry with travel and tourism sector and its interrelationship
as well as role of hospitality function
Hospitality enterprises involves accommodation, lodging, hotels, restaurants and so on.
Travel companies like First Choice need advising popular hospitality facilities in order to satisfy

their customers or guests. The hospitality business is the part of larger industry known as travel
and tourism business (Aynalem, Birhanu and Tesefay, 2016). Travel and tourism is deeper group
of business with one common objective is to provide the needed and desirable products and
facilities to the tourists.
Restaurants:
Restaurants are categorised in various manners. The leading elements are generally the
food itself which is seafood, steak, vegetarian and so on. Fast food restaurants are also
considered as restaurant. The travelling people has been long served for the ship's messes that are
influenced travelling restaurants. Cafes, coffee stores, thoughts and fine dining are also advised
as restaurants in the modern decades (Bartlett, Johnson and Schneider, 2016). In relation to,
travel and tour organizations are given the food and drinks facilities to their travellers for raised
their attraction.
Accommodation:
This sector of hospitality business characteristics range from luxuriant hotels and lavish
resorts and camp ground. It is the broad sector of hospitality industry that is scoping from bed
and breakfast business as well as hotels to other facilities that offer lodging services. Also,
customer services is needed in providing accommodation services. In this context, travel and
tourism companies like First Choice also give the accommodation to their customers.
Hotels:
Hotels are mentioned to by hotel type or classify. The form of hotel is described leading
through size and area of the structure of hotel then by operation, target market, service level and
standard of industry (Robinson, Ruhanen and Breakey, 2016). There are different kinds of hotels
like 1 star to 5 star, budget,bed and breakfast. The hotel size is based on number of guest rooms.
Thus, hotel sector business play broad role in the travel and tourism sector.
Interrelationship among hospitality and travel industry:
Travel is an activity where multiple people from all over the world visit nation. The
objective of travel is to pull tourists from other parts of the world. It is to acquire about the
custom and action that have been playing crucial role to sustain the social-economic status of
host. Hospitality is the capability to local to provide cool accommodation to any visitors who
need to experience the chance of their lifetime by visiting locations. Hospitality is the leading
element because tourists need local to experience custom and culture of country. Company can

be adopt the model of competitiveness for identifying the competition in travel and tourism
sector as well as hospitality industry. Through this, company needs to determine the
interrelationship among hospitality and travel industry. Therefore, company will provide the
differentiation goods and services as compared to their competitors. This can aid to increase the
competitive advantage.
Role of hospitality in business travel:
Hospitality business in playing the best and efficient role in travel and tourism. In this,
hospitality business paying effective and best services to the business, budget, private tour,
business travel and adventure (Vellas, 2016). In relation to that, travel and tour also give
conferences, events for raising the more attraction of tourists. In that, First Choice's hospitality
plays crucial role through paying extra care to people.
TASK 2
2.1 Integration in hospitality sector companies and explain the horizontal as well as vertical
integration in the industry
Integration is the approach that means to firms become big enough and have capable
capital through which often decide to acquire other businesses. There are two types of integration
like horizontal and vertical (Manthiou, Kang and Hyun, 2017). The chain of distribution also
knowing modes of horizontal and vertical integration work.
Horizontal Integration:
It involves reducing competition and enhancing market shares through purchasing
competing businesses. Companies try to purchase in same business which can offer many
advantages including like increasing in size, developing their goods offering, reducing
competitions and approaching the new consumers (Zaitseva and et.al., 2016). If tour operator
like First Choice buy at the same level in the chain of distribution, so that it known as horizontal
integration. If the tour operator merger with other travel operator so that it is horizontal
integration because they are on same level.
Vertical Integration:
This occurs when company purchase firms involved in various stages of the value chain.
This means that one firm purchase another involved in the production of the same product but at
the various level of supply chain. It is process of creating the products and getting it market

cheaper and quickest. There are many advantages involving powerful their supply chain,
reduction in production costs, acquiring more profits and access the new distribution channel.
Travel operators have buy or made airlines, hotels and travel agencies (Baker, 2017). This means
they operate all the chain of distribution and capable to control whole operation. For instance:
First Choice and TUI are tour operators and they merged together. Now Thomson operate both
companies. TUI is frequently promoted on Thomson discuss but it is in smiley face style. If the
tour operator merged with transport providers, so that it can vertical integration.
Combination is action and its results are more impressive and best manner. Hospitality
industry is integrated with airline firm joining travel provider. Nowadays, people are needed to
travel through air and water because of early and quick reach to destinations. It is influenced to
business by creating positive modification and development of business (Bavik, 2016).
Integration and merging is the best and efficient part when company gain large development in
their hospitality business. Tourism is worked the best protection and development of
environment. For that, First Choice has assisted to company for becoming market leaders in the
travel and tourism sector.
2.2 Effects of integration and modes of deciding to respond to consequences of integration
Through integration, There are effects of an integration of travel and tourism companies
like First Choice. Integration and merging is helped to gain success of company and also develop
presence of business at the marketplace. Effects are followed such as:
Branding:
It is the often evaluated of customers and aided to gain success of the tour company. It is
useful and best for managing the development of the company. For instance: First Choice is
merged with TUI group for enhance branding within hospitality industry. This have every
effective and valuable brand image in the marketplace and also customers are trusted to them
(Hofmann and Stokburger-Sauer, 2017). First Choice is integrated and merged with TUI group,
investing in another firm at the same sector that can aid to create strong brand image in the
localised and globalised market areas. This group is preserved old consumers and assuring same
quality of services in different sector.
Raised in globalization:
It is important to raise in globalization through integration. The handling of market which
is most important activity of the business. This can aid to generate revenue and give global

exposure to the company. First Choice is the merged with TUI group which aid to develop their
global presences and image (Law and et.al., 2015). Globalization is reduced trade barriers that
can aid to attract consumer towards the goods and services. These have advantages from their
products and services trade in order to that same happens.
Market share:
It is the crucial for firms to create the position within the industry in which they operates.
Thus, companies require to integrate with another entities. An integration is helped to raise
market share and give the competitive advantages. For example, First Choice is merged with TUI
group. Therefore, this integration is aided for First Choice in terms of increase the market share
in travel and tourism sector within hospitality industry.
Reduction of independent business:
Through integration, there are high reduction of independent business within the
particular industry in which they operate. Through integration, independent organization joining
another companies to compete with the big firms (Aynalem, Birhanu and Tesefay, 2016). This
aid to raise competitive advantages of travel and tourism with in the hospitality industry. For
example: First Choice is integrated with TUI group both companies operate in the travel and
tourism sector. This can aid to reduce the independent business in the travel and tourism sector in
the hospitality industry.
Market control:
Integration is aided to control the market which give cost advantages to firm as well. For
example: First Choice is merged with TUI group in relation to improve and control of market in
effective manner. This can aid to raise the market share. This travel sector is helped to maintain
effectively and valuable control to the marketplace. Thus, integration is advantageous for
controlling of the travel and tourism marketplace.
Thus, integration is important for low and small company for expanding the functions
and activities in the marketplace. It is also known as merger and acquisition that refers to
combination among two firms (Bartlett, Johnson and Schneider, 2016). This can aid to raise the
market share, branding and market control by company. With the help of it, raise brand image
and equity of travel companies like First Choice in tour sector. This can make the larger position
in relation to competitive advantages within the hospitality business. Through integration,
increase the brand awareness to consumer towards the services of company.

TASK 3
3.1 Rational for new hospitality business outlining the goods and services concept
Travel and tourism is offered key to make memorable experience for travellers. This
experience is fantastic for their outing. Most of the people go outside for changes which is more
effective. First Choice is UK based tour operator and subsidiary of TUI group. Now they want to
open a new hotel which named is First Choice hotel. It is provided the best experience to the
people in unique and effective manner (Robinson, Ruhanen and Breakey, 2016). This business
plan is raised experience such as niche and unique. This decision is completely linked to the
target market and customers as well. This innovative and specific business aid to raise market
share, revenue and profits of First Choice. New and unique business aid to raise profits and
productiveness of selected tourism company. Attractive goods and services concept raise number
of consumer that aid to increase the sales and market share of the company. Also, this can help to
create larger position within the hospitality industry.
3.2 Produce project proposal
Executive Summary
This business plan includes company background, target market, range of goods and services as
well as SWOT analysis of the new business. It has covered that operating model, cost and prices
approach and financial analysis of First Choice. The aim of this business is to transform quality
to people and other. Selected firm open new hotel which is named First Choice hotel. This kind
of business plan help to raise the consumer attraction and experience towards the firm (Vellas,
2016). This business plan help to increase market share and create brand position within the hotel
sector.
Company Background
First Choice is the UK based travel operator and subsidiary of TUI group. The originally
named is Owner Abroad was founded in the 1973 operating as travel agent. It introduced
Air2000 in 1987 and acquired Redwing under the guidance of Howard Klein in the 1990. the
organization was the renamed First Choice in 1994. Now the company open the hotel as per their
name in UK. This business aid help to increase the consumer's experience and attraction towards
the business. This business plan help to increase market share and create brand position within
the hotel sector.

Target Market
First Choice want to open new hotel “First Choice Hotel” for increase experience and
attraction of consumer towards goods and services of business. Company will be targeted those
consumers who are purchasing their holidays packages for travelling. This kind of business idea
aid to increase number of consumers towards the new business (Manthiou, Kang and Hyun,
2017). For targeting consumers, company will be the adopt the various promotional activities
like hoarding, social media and company website that will help to promote the business in the
hotel as well a travel sector. This business plan help to increase market share and create brand
position within the hotel sector.
Product and Service
First Choice offer the packages holidays, cruise lines, resorts across the world. Now, they
will open the new hotel in which they offer the rooms, banqueting, foods and beverages services,
swimming pool services, fitness services and so on. They provide all goods and services those
consumers who are buying their holidays packages (Zaitseva and et.al., 2016). Therefore,
company will focus on high standard and quality of products and services to increase experience
of consumers towards it. This business plan help to increase market share and create brand
position within the hotel sector.
Design
Company will be focused on the design of the hotel which help to attract the more
consumers. Attractive, innovative and unique interior design of hotel which involves front desk,
rooms and so on (Hofmann and Stokburger-Sauer, 2017). For that, company will consult their
parent company for opening an new hotel and giving all informations relating to hotel business.
This business plan help to increase market share and create brand position within the hotel
sector.
SWOT Analysis
Through SWOT, company will need to identify business strengths and opportunities as
well as determine the weakness and threats for starting new business in different segment of
hospitality industry. This kind of business plan help to raise the consumer attraction and
experience towards the firm. This business plan help to increase market share and create brand
position within the hotel sector.
Strengths Weakness

 Innovative design of hotel.
 Target more consumers.
 Create brand identity in hotel sector.
 Large amount of money on design and
raw materials.
 High technology and other equipments
which includes on hotel.
Opportunities
 Ability to attract the consumers.
 Build brand image.
 Adopting various promotional
activities.
Threats
 High employees recruitment
expenditures.
 Large amount of money spending on
the landscape.
 Higher competition in hotel sector.
Operational Model
First Choice open new hotel business that is “First Choice Hotel” for increase brand
identity in the hotel and travel sector. For that, it is necessary to understand the information and
history about the hotel industry after that, company will decide to open new hotel. Also,
company will be recruit and hire the employees for new business and giving appropriate training
and development for developing knowledge about the hotel business, its goods and services as
well as other info. Through this, employees will make efforts to run operations of company
carefully and smoothly. Also, worker are highly contribution in the promoting and marketing of
business and its activities within the marketplace. This business plan help to increase market
share and create brand position within the hotel sector.
Marketing and Sales
It is necessary to marketing of business, its products and services to brand identification
by consumers in the marketplace. Therefore, company will provide the training for marketing
and promoting the businesses and its activities to consumers in the marketplace. Thus,
organization will adopt the promotional activities like hoarding ads, social media marketing and
sale promotion for targeting number of consumers in the marketplace (Hofmann and Stokburger-
Sauer, 2017). This kind of business plan help to raise the consumer attraction and experience
towards the firm. This business plan help to increase market share and create brand position
within the hotel sector.
Cost and Prices Strategy

It is necessary to determine all the expenses and gains for starting the new business. It is
needed to follow the strategies for forecasting of costs and prices of goods and services of
business (Bavik, 2016). In this context, selected company make budget for all the expenditures
of mew business. This business plan help to increase market share and create brand position
within the hotel sector.
Particular Amount (£)
Equipments £3600000
Landscape £1250000
Inventory £600000
Marketing £300000
Websites £310000
Taxes £120000
Payroll £250000
Access the funding
First Choice has already merger with TUI group, so that they will access funds starting
new business for increase the market share and brand position within hotel sector. Merger is
most essential source of funding which help to reduce the availability of financial resources of
company (Baker, 2017). This kind of business plan help to raise the consumer attraction and
experience towards the firm. This business plan help to increase market share and create brand
position within the hotel sector.
CONCLUSION
This report has summarised that scale and scope of hospitality business that includes
hotels, restaurants, accommodation which have also interrelated with travel and tourism sector. It
can be discussed that two kinds of integration that is horizontal and vertical that have utilised in
travel and tourism. It can be concluded that effects on integration in different ways like increase
market share, reduction of independent business, raise the globalization and branding of
company in travel and tourism sector. Furthermore, report has completed that develop business

plan in relation to selected company opened new restaurant which involves products and services
concept in hospitality business.