Hospitality Provision in Travel and Tourism

This report examines the relationship between hospitality and the travel and tourism industry, using Thomas Cook Group Plc as a case study. It analyzes the benefits and challenges of integration in the hospitality sector, including vertical and horizontal integration, and explores how organizations respond to the consequences of these strategies. The report also includes a project proposal for a new hospitality business, outlining the product-service concept, target market, location, operating model, and design.

Hospitality provision in travel
and tourism.

Table of Contents
INTRODUCTION...........................................................................................................................3
1.1 Discuss the interrelationship between hospitality and wider travel and tourism business.. .3
2.1 Analyse the implications of integration to the hospitality industry......................................5
2.2 Discuss how integration has affected a hospitality business.................................................7
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market..........................................................................................................................................8
3.2 Develop a plan for a hospitality business including the operational requirements of the
business organisational structure in relation to human resource allocation................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Hospitality industry is one of the broad areas of service industry in which lodging, foods
and drinks, event planning, theme park and travel and tourism main fields of that area. This
sector one of largest sector that helps in providing employment opportunities and enables in
economic growth and enhancement. This report is based on role and importance of travel and
tourism in hospitality sector to enlarge business opportunities. This report is based on Thomas
cook Group Plc that is an British global travel and tourism company Which is formed in 1841
after merge with Thomas cook AG. That group of travel and tourism owns and operated lot of
tour operators also airlines in UK. Its headquarter is in London, UK and serve almost all over
globe. This report is based on interrelationship between the hospitality sector with importance of
integration in hospitality sector and how to imply it in organisation. Further it also includes
rationale to build an project on hospitality business by various operational requirement.
TASK 1
A. Discuss the scope and scale of the hospitality industry within the travel and tourism sector and
its interrelationship.
Hospitality industry is one of the broad category of various fields and services in which
travelling, transportation and travel and tourism is one of important factor. In hospitality industry
travel and tourism is one of the significant sector that helps in economic growth by providing
328 million jobs and give assistance to almost 10% work force of all over world by 2022 (Hall,
Timothy and Duval, 2012.). in hospitality industry many business relate or connect with it in
which food and beverages, event planning and theme park that is the requirement of current
consumer base to give them delighted experience and to provide full package of services.
Scope of hospitality industry in travel and tourism sector:
There are large scope of hospitality industry in travel and tourism sector that can be
understand by different factors that are as follows:
Package holidays:
the role and importance of hospitality sector in package holidays is very much. In hotels
included packages of holidays which vary from price and according to facilities. In case of
budget packages then they can not demand five star accommodation but at least they can achieve
three or four star accommodation. Holidays packages should be purchase in mass amount so it is

one of the important relation in hospitality sector with travel and tourism sector to reap benefit
from each and every factor (Jiang, Scott and Ding, 2015).
Travel agencies:
Travel agencies that are part of hospitality industry and to give delighted experience to
consumers it plays vital role. People come from different nations to visit other places and in that
choosing the right agency of travelling to occupy smooth vacations by eliminating risk factor. In
choosing a travel agency from which an individual want to visit directly impacts on travel and
tourism industry (.Law, Buhalis and Cobanoglu, 2014..).
Airlines and railway travel:
These are most important industries which connects with hospitality industry. In case of
Thomas cook they have their own Thomas cook airlines that is British charter and scheduled
airline. In hospitality industry connection with other fields and industries is very much obligatory
to provide delighted experience to consumer base (Fotis, Buhalis and Rossides, 2012.).
Cruise companies:
Hospitality industry is one of broadest industry in which travel and tourism plays vital
role to give best and complete services to consumer base. In order to connect with all clients and
to give best experience to consumers Thomas cook connect with other clients and associate with
them to fulfil demands of their potential buyers (Li, 2016).
Spas:
It is also an important part of travel and tourism industry to give best possible services to
consumer base. In that services includes bath by using mineral and sea water to give medical
treatment. In order to Thomas cook to provide services of Spas to their consumers connect and
take services for achieving goals and objectives. Thomas cook provides facility of spas in
countries such as Maldives, Sri Lanka and southern areas of India and most European countries
(Theobald, 2012.).
Scale of hospitality industry:
In scale of hospitality industry consist of sectors that are completely associated with them
in which theme parks, travel and tourism, spas and jungle safari and many more. In order to this
industry provides almost 1.8 to 2.4 million people in all over world. Hospitality industry have
estimated turnover of £90bn and £46bn in UK economy. It is third largest sector in workforce in
hospitality, leisure and travel and tourism sector. Hospitality industries get enhancement by 89%

workforce and 43% self catering services and holiday packages (Law and et.al ., 2015.).
Hospitality industry is one of most important part of organisational development and
enhancement to reach at desirable goals and objectives. In relation to hospitality industry they
focus on development of an individual by enhancing living standard of people.
Interrelationship in different sector in hospitality industry:
There are close relationship in different departments of hospitality sector in which
includes travel and tourism, spas, theme parks, airlines and accommodation services with
transportation. In Thomas cook to give all services under one roof they share roles and
responsibilities to one another and integrate to one another to achieve their own objectives. In
order to they share clear vision and mission with one another to put maximum efforts (Leung,
and et.al ., 2013.).
There are close relationship in travel and tourism with hospitality business to offer best
services to their consumers such as accommodation, transportation and food with beverages to
their consumer base. In order to give best services to consumers organisation have to provide
delighted experience.
TASK 2
A. Explain integration in hospitality sector organizations and analyse with example drawn from
your organisation or other relevant organisation how horizontal and vertical integration in
the industry.
Organisational integration is an management tool that adopt by organisation when there
internal and external factors by successfully mesh to them. In integration every firm either large
or small has their own characteristics such as management style, organisational structure,
strategy and organisational culture. In case of Thomas cook they integrate to give better services
to their consumer base by Thomas cook AG. In that aspect they can be able to give best products
and services comparatively by saving cost and time (Litvin, Goldsmith and Pan, 2018).
Integration popularised in year of 1900s when organisations emphasis to enlarge business
opportunities and take advantage of low operating cost. There are various types of integration
that are:
Vertical integration:

Vertical integration is an chain of activities in which an company purchase another firm
distribution chain by entering into an merger agreement. It should be implement for maximise
profit and lower down operating cost (Medlik, 2012.). In tradition there are three types of
integration in which forward, backward and lateral integration. It helps in elimination of barriers
to enter in market and it limits competition level. Companies to gain control and authority
implement vertical integration system. There are three types of vertical integration in which
forward integration in which firm will gain ownership of their own distributor. Another is
vertical integration in which firm take ownership of their suppliers.
Forward integration:
Forward integration is a process by that company merge with any other company to
strengthen their distribution chain. For example an hotel chain aimed to purchase its own travel
and tourism sector with motive of expand their market share. for example Highest company that
adopts forward integration in which Amazon is best example that purchase whole food and
others chains also. Amazon already an vertically integrated company in many ways (Mills and
Law, 2013).
There are great role of integration in an organisation when firm falling in path of short term
solutions in that case they invest time and resources to bring out solution for future by integrate
firms that work in same field to achieve desirable goals and objectives. In case of Thomas cook
they integrate their product line by investing huge funds to give their best in self interest of
organisation and to given best to consumers.
Integration plays very important role in hospitality industry to integrate and provide all facilities
under one roof to give delighted experience to consumer base. In hospitality sector many sectors
exist in it that are food and beverages, spas, accommodation, transportation that are essential part
of hospitality sector. To give complete tour package organisation have to integrate all fields and
sectors so that they can give best services to their target market. In case of Thomas cook they
contact with all sectors to provide best services to their target consumers under one roof.
Integration is an important attribute for organisational growth and enhancement to enlarge
business opportunities in positive way. Integrate with other firms helps to grow in all spheres of
an organisation to gain competitive advantage.

B. Discuss the impacts of integration and how the organisation decides to respond to the
consequences of integration. Consider both vertical and horizontal integrations.
Integration basically to connect self interest of two or more than two organisation to cut
down operating cost with reach at large market base to satisfy needs and wants of consumers
(.Mok, Sparks and Kadampully, 2013). In case of Thomas cook they integrate or comply with
other sectors to give their best services to ultimate consumers. There are huge benefits of
integration in every sphere of organisation and its influence each and every aspect in dealings of
firm that are as follows:
Create brand value:
Brand name is one of important factor that helps in acquire the large market share by
connected emotionally or personally with people. Success of tourism industry totally based on
branding and their related techniques implemented by players. Thomas cook is an well known
brand name in travel and tourism sector by integrate with other sectors to give best experience to
their target market (.Osman, Johns and Lugosi, 2014.). It provides or build products and services
by knowing taste and preferences of their consumer base. When an organisation associate with
other relevant company or brand consumers easily can know features that provide by that
company and it helps in enlarge their business opportunities. Brand value helps in create
consumer loyalty and build an strong image in front of their target market.
Market control and integration with larger organisations:
The another main advantage or positive impact of integration is that it controls over
various works and activities and helps in enlarge business opportunities. In case of Thomas cook
with the help of integration they can be able to control over large market share and clients with
another company can be able to increase their sales ratio. This type of strategy is beneficial for
large company such as Thomas cook because they already giant in market but it is not beneficial
for small firms because they not capable to control or dominate another giant organisation.
Economies of scale and market share:
In an organisation when they adopt integration with other organisation it helps in reduce
cost of operation and give brand loyalty which helps in charge high cost with consumers. But
they can only reap benefits by providing wide variety of products to satisfy consumer needs and
want in proper way. For example if an tour operator take over an hotel,cost associated with that
should be high but by providing large chain of products under one roof increase sales

immediately. In case of Thomas cook which invest lot of money on research and development to
know taste and preferences of consumer base and integrate with other firms that provide best
quality products and services to gain large market share. By adopting right and appropriate
strategy to increase market share and it ultimately pass profitability to consumers ( Robinson,
Ruhanen and Breakey, 2016.).
Quality:
In an organisation after adopting the integration it is not sure that it give quality of
products and services. It totally depends on variable factors such as human resource. For an
example if an hotel integrate by other, then it is not sure that new owner of company focus on
giving best quality products or adopt approach of improve quality. Hence all are the major
benefits of adopting the integration strategy and provide goals and mission to other organisation
by taking help of them that proved beneficial to gain higher costumer base with low operating
cost. But if an organisation integrate with other organisation it proved beneficial for them in
improving their quality of products and service because it helps in adaptation of techno
orientation ( Rydzik and et.al ., 2012.).
Plan risk responses involves determining methods or ways to eradicate various kinds of threats
when an organisation planned to apply integration and opportunities to enhance their influence.
That kind of plan risk give measures and select best steps to eliminate uncertainties in
environment that can affect their business.
Horizontal integration:
it is a process of a firm that helps in increase their production of goods and services that is same
part of supply chain and its management. It can be possible by internal expansion, acquisition or
mergers. Horizontal integration captures the large market share and proceed towards monopoly
which is an important attribute to reach at large consumer base.
Vertical integration: in vertical integration consist of an arrangement in which supply chain of
one company should be occupied by another company that helps in enlarge their business
opportunities. Vertical integration when an organisation controls or operate more than one
supply chain and its process related with converting raw material into finished products and
services.
TASK 3

A. Develop a rational for a new hospitality business/project outlining the product-service
concept.
To lead in market organisation have to develop and adopt new with innovative ways to
gives delighted experience to consumer base. In order to launch a new product or services into
market organisation have to analyse each and every factor that around the business and impacts
on their profitability ratio of organisation. In case of Thomas cook to lead in market they have to
implement new concepts and methodologies into market place to give their best services to
present and future market base. In order to organisation have to develop a new product or
services that satisfy current and future needs of consumers better than their competitors. Thomas
cook is an multinational British organisation that provides travel and tour packages to their
consumer base by giving potential benefits to large consumer base. Before implementing a new
concept into marketplace organisation have to research about taste and preferences of consumers
and also evaluate micro and macro factors that gives insights and knowledge about market
demand and policies of competitors to beat them in better manner. In their new project consist of
prototype that is developed by them in data and advances to showcase to travellers about
progression by airports for the project by evaluating hotel images. It can be possible by
Instagram and flight search applications by google glass and Everstin to adopt rapid pace of
change and innovation. In another new project is connect with virtual reality and avail
technology to evaluate or explore people and places in virtual way by multi level interactions by
senses and sound touch that combined to grab data and information to present information in
more friendly way to grab attention of large no. of consumer base. It is one of the most fruitful
way and method to connect with customers in virtual way and enhance their sales in positive way
(Sigala and Gretzel eds., 2017.).
It is one of the effective way to connect with large no. of consumer base and its is most techno
oriented way to provide services to consumer base and helps to beat their competitors in positive
way. It is rational in many senses such as provides results with accuracy and give knowledge and
information to internal structure of organisation to build products according to choice and
preferences of consumer base and comply with business goals and objectives in proper way. In
that aspect it is one of the best technology which gives fruitful results and action plans to reach at
desirable goals and objectives.

B. Develop and produce a project proposal: target market, location, operating model (including
staffing), and design based on a thorough market potential analysis with suitability.
To implement an plan and policies before it organisation have to test viability of a project
by evaluating target market, location in which it should be implemented and model to operate
business by knowing viability of staff and their contribution in understanding their contribution
to lead in market share (Sigala, Christou and Gretzel eds., 2012.). The project that implement
by Thomas cook to grab the passengers to directly connect by airport to enlarge their business
opportunities. To know the viability of business project organisation have to conduct through
research that give important insights and knowledge that make possible to take appropriate
decision at appropriate cost and time.
To reach at desirable goals and objectives organisation have to conduct through research on
different aspects that are as follows:
Target market:
Target market which ready to avail services and products by giving best prices and
become loyal consumers of organisation. Target market of Thomas cook is middle and rich class
people who want quality services to gain attention of large no. of consumer base.
Location:
it is one of the largest and multinational organisation which operates in almost all over
the world and mostly in big cities where airports and international flights give their services
(Uzeng and Gerritsen, 2014).
Operating model:
Operating model is an abstract or visual presentation of the way in which organisation
deliver values to their ultimate consumer base for motive of provides benefits. In case of Thomas
cook they adopt operating model by tools and techniques, people and organisation and adopting
processes that are relevant to situation and building strong culture to attain goals and objectives
by giving best motivation. In order to Thomas cook they to operate their project plan give
motivation level to employees and give training and development to enhance their production
level. It is very obligatory for organisation to adopt tools and techniques by giving suitable work
and culture in which every one can give their best (Smith and Puczkó, 2014.).
Suitability and acceptability criteria:

This is one of the best project to enlarge business goals and objectives by evaluating taste
and preferences of consumer base. In case of Thomas cook they judge suitability and
acceptability criteria by accessing results after implementing into market and positive results that
show financial data and statistics that reveal about potentiality of project and relevant assessment
that can be accomplish from it. Hence in that aspect it is one of the most important to deliver
highest value and maximum output by enlarge business opportunity because it is very important
to beat competitors of that organisation (Williams, 2012.).
Costing of the project:
The estimated costing of the is 20000 €.
Marketing strategies of the project:
To reach at large no. of consumer base organisation have to pre planned and organize
works and activities by recruiting best candidates according to requirement of project. They
design each and every aspect such as coordinate activities that are related to each other.
CONCLUSION
From the above report it has been concluded that hospitality industry is one of important
field in economy which helps in enlarge business opportunities. Hospitality industry interrelate
with many sectors to give best value to their consumer base under one roof to give best and
qualitative products and services. Further integration is one of important tool to expand market
share with another companies that give best results to achieve growth and expansion. For every
business launch new products and services to keep always updated and remain relevant
according to market conditions and provide best goods and services to satisfy wants in pleasant
manner.

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