Analysis of Hotel Industry and Tourism Management

The provided document offers an in-depth examination of the hotel industry and tourism management. It encompasses discussions on vertical and horizontal integration, the impact of online WOM on destination trust, and the use of social networks for tourist destination choice. The assignment also touches upon strategic management for travel and tourism, including marketing strategies and assessment of service quality in hotels.

Hospitality Provision
in Travel and Tourism
Sector

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1: Interrelationships between hospitality and wider travel and tourism businesses.................1
TASK 2............................................................................................................................................3
2.1: Implications of integration to the hospitality industry..........................................................3
2.2: Integration has affect a hospitality business.........................................................................5
TASK 3............................................................................................................................................7
3.1: Rationale for selected project...............................................................................................7
3.2 Development of plan for cordiality business ........................................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Hospitality provisions states the various laws and legislations that must be followed by an
organisation engaged in providing hospitality products and services. It directs hospitality
companies to identify its roles and responsibilities in regards of dealing with customers so that
desired expectations can be meet in effective and efficient way. As the hospitality industry
contributes maximum support in the growth and development of economy of a nation due to
which the government took various initiatives to execute their hospitality activities in an
appropriate manner so that they can continuously supported nation in terms of increasing GDP as
well as government in terms of increasing their treasury. The present assignment report is based
on the provisions of hospitality industry due to which PKF Hotel experts are selected under this
report. The main objective of business is to maximise the experience of customers by providing
quality hospitality products and services. The present report is divided into two different task
which communicates the role of hospitality sector within travel and tourism sector. The project
also discusses the impact of integration within hospitality industry along with its development
plan which includes different aspects such as cost, location, time for their business.
TASK 1
1.1: Interrelationships between hospitality and wider travel and tourism businesses
To, Manager of PKF Hotel experts
From” Junior Consultant
Date: 18th July
Subject: Interrelationships between hospitality & travel tourism sector
Travel and tourism industry of UK engaged in providing wide range of hospitality services to
the clients. It includes food, accommodation, adventure events, airline facilities etc. which
maximises the travelling experience of customers. At present, more people are willing to travel
to other locations with their different purposes which includes education, leisure time with
families etc. For this, they search a best tourist agencies which exist in market to attract
customers by their attractive travelling packages at an effective prices. In UK, numerous
organisations are operating into hospitality market engaging in offering best tourism services
from accommodation to travelling at preferred destination places.
Hospitality industry is much interrelated with travel and tourism industry of UK with an

objective of serving customers with better and standard services. Therefore, the scope and scale
of growth of hotel companies are very much high. For this, the tourism organisations enter into
an agreement with hospitality firms with a condition of serving their customers in better and
effective way. In UK, growth and development of tourist companies are continuously grow.
Such agreement binds both organisation to welcome foreign visitors with quality services and
put their efforts in maximising their travelling experience. Therefore, It enables both
organisation to achieve loyalty among each others as well as customers for future time period.
The supportive services of travel and tourism sector and its interrelation with hospitality sector
clearly indicates that there is higher chances for hospitality industry to achieve growth and
success in competitive market.
Composition of hospitality industry: It consists of various kinds of hotels, restaurants, pubs
and bards, nightclubs, contract food service providers. Such kind of hotels includes 1 to 5 star
hotels, budgeted hotels offering bed and breakfast facilities, restaurant includes fast food
restaurant, coffee shops, fine dining, pubs and bars includes leased pubs, managed houses,
nightclubs includes catering outsourced to a contract food service provider etc.
Role of hospitality industry:
Hospitality sector plays an important role in business functions of tourism companies in form of
supporting them in providing different types of services to visitors so as to maximise their
satisfaction level. Such services includes accommodation, bars, parks, clubs, entertainment
facilities, catering services etc. Almost all the tourism firms are includes such services in their
offering list with different prices. For this, certain provision has been created for the hospitality
sectors for the purpose of protecting customers from any exploitation.
Relationship between hospitality industry and tourism sector
The relationship between hospitality and tourism sector have maintained strong relationship
with an aim of achieving common objective i.e. retaining loyalty of customers and maximises
their travelling experiences. It can be possible through giving combined efforts in terms of
providing valuable services such as accommodation, entertainment and catering services etc.
due to which it can be easily said that the growth and success of both are interdependent on
each other. Tourism business has bidding with different kinds of villas, restaurants, hotels etc.
which are more popular and trustworthy in market. At current scenario, mostly visitors would
like to visit at reputed hospitality companies with an expectation of receiving valuable services

for their money. Such type of things are taken on priority by hospitality and tourism companies
and accordingly gives combined efforts to meet the same with an effective manner.
Consequently, both tourism and hospitality companies motivates each other to perform well. In
addition with this, both business contributes maximum support in the growth of GDP of UK by
creating large number of employment opportunities, payment of huge taxes etc. These can be
further explained as under:
Package Holidays: Hotels are coordinating with tourist agencies in order to gain maximum
visitors to offer their quality tourism services. It is done through attracting visitors by providing
different attractive packages so that the customers have options to select one according to their
needs and budgets. For example, if customers are having good budget then they prefer to select
standard services such as five star accommodation.
Business travel: In UK, there are number of hotels who are offering various kinds of services to
their customers which includes WI-FI facilities, business centres, internet, conference hall etc.
so as to facilitate customers to work. It is available for the visitors who are having good amount
of budget.
Aviation: The profits and demands of airlines services are very much depends on the growth of
tourism business as number of tourists came to other nations with the help of using airline
services. Airline services provides differentiate customers on the basis of their budget. For
example, high budgeted customers can experiences of food and beverages with inclusion of
ticket price whereas such services are excluded for limited budgeted customers.
TASK 2
2.1: Implications of integration to the hospitality industry
At earlier times, organisations took more focus on gaining benefits by lowering its cost of
operation. For this, business organisations play a crucial role in developing services in-house
where were minimising their out-source situations. In order to make an effective strategy,
organisation were compound their business operations with the other business and save the
wealth. At present, such method assist organisation to increase its market share as well as strong
brand image at global level within limited period of time (Abubakar and Ilkan, 2016). The same

method has followed on both tourism and hospitality organisation. There are certain advantages
that can be received by Hospitality companies which are mentioned as under:
Starwood Hotels & Resorts has to bidding and contacting with Marriott hotel in order to
provide its hospitality services such as beverages, food, accommodation and many other
services. Such agreement gives advantages to both organisation in terms of achieving huge sales
of products and services. Inclusion of standard hospitality services in tour packages can easily
attracts maximum of customers due to which it makes easy for both businesses to achieve strong
sustainability as well as profitability in market. Therefore, the integration in tourism and
hospitality organisations brings various advantages which support them in achieving growth and
expansion (Brotherton, 2012).
Vertical integration: It is considered as an effective method in which an organisation
comes under statements with another firm to achieve common objective. The main motive under
this is to increase profits by minimising the cost of operations. This type of integration may
includes backwards, lateral and forward. Marriott hotel in currently following backward vertical
integration which makes them more capable to operate different groups such as Marriott delta
hotels and resorts and many. Apart from this, the company also can follow vertical integration
method in which they come in an agreement with others hotels to reduce the cost of hospitality
sector. Through such integration, the impact on tourism and hospitality industry is to increase
their capabilities to made maximum control over the value chain. With the help of such
integration, business organisation has easily achieved competitive advantage as well as provide
an opportunity to serve the customers with best services.
Horizontal integration: It is another important integration which can business can do in
order to enhance their profitability ratio by increasing customer base, economies of scales and
many more. Marriott hotel is also use horizontal integration in which they merged with delta
hotels and resorts with an objective of reducing costs as well as increasing profitability ratio. The
impact of such integration on business organisation is that it help in accomplished economies of
scale through providing same types of services in more quantity. It is also essential for
hospitality and tourism companies to capture large market share and minimising the international
trading cost. Apart from this, it brings disadvantages to company as well such as decreasing
productivity, lack of control, less authentication to take reliable and accurate decisions and
suitable plans (Evans, Stonehouse and Campbell, 2012).

Some instances of integration is acquiring Starwood Hotel and Resorts by Marriott
International Hotel with a clear objective of maximising the market share across worldwide. In
the 2015, Accor’s hotel of France integrated with Toronto-based parent business of luxury
Fairmont for 2.7 billion. Another instance is about Delta Hotels and Resorts which are also
merged by Marriott for 135 million. Such instances are the real examples of merger and
acquisition under integration. In order to achieve huge market share, Marriott International hotel
should take various initiatives which are determined as under:
Control and manipulation of market: In UK, there are various tour operators such as Trail
Finders, Thomas cook etc. which always tried to expand its business to other countries by
merging or buying hotels in other nations which indirectly support them in capturing large
market share and achieving competitive advantage.
Branding: Achieving strong brand image easily influencing the decisions of clients to
utilise their services for longer duration due to having trust and loyalty among them. Therefore,
the company tried to increase its brand image by vertical and horizontal integration on operations
and functions of company.
2.2: Integration has affect a hospitality business
Horizontal and vertical integration makes huge impact on the business plans and policies
of Marriott International. Such impact includes the maximisation of work efficiency, meet
economic of scale and take benefits of global trade. The impact of such kind of integration on
business can be easily understood from the instances. By merging with Starwood Hotels and
Resorts, the business cost has been reduced which directly makes positive impact on the
profitability. Therefore, it will brings advantages to Marriott International hotel to increase its
sale of offering and saving of costs. Apart from this, bidding or making agreement with others
business may cause decreases in various expenses and to domain untouched markets in easy
way. In addition with this, usage of resources by both Marriott and others firms will get more
utilised due to which the chances of having wastage will be less. On the other hand, it minimises
the benefits from present profit volume and distribute it into partners of company. Along with
this, hotel can face diminution in entire worth of brand in market place (Kropinova, Zaitseva and
Moroz, 2015).
Vertical integration has also makes huge impact on the business functions of Marriott
International Hotel either in negative or positive way or both. In case of positive impact, the

business can improve their hospitality services by increasing investments. It makes easy for
company to differentiate its services from their rivals among their clients so that customers can
easily identifies and attract towards its services which in results maximising the market share and
profitability ratio.
On the other hand, the impact of such integration for hotel is very certain for quality of
tourism service. Marriott international hotel can exercise its control over quality of service
provided by its partners. For example, while working with Starwood hotels and resorts, Marriott
international hotel is more capable to control over its operations and activities. Vertical
integration out negative impact on the capabilities of business as it is more difficult for business
to make accurate balance during low or high situation of demand. It has developed the
dependency on other organisations in order to achieve its objectives and goals within limited
time period. Thus, it causes reduction in flexibility and effectiveness of business operation
(Leung and et. al., 2013).
There are various actions which can be helpful for Marriott International Hotel in order to
minimise the negative impact arises due to horizontal and vertical integration. First step is to
standardisation of hospitality services for each partners operated in each countries which makes
easy for company to deal with various issues and challenges while operation its business
functions all over the world (Mohamad, Omar and Haron, 2012). Another actions is to enhance
the capabilities such as opening new own villas, club and others. It reduces the dependency level
on another organisation in order to achieve its desired goals and objectives.
Impact of integration between to large organisations:
In the present scenario, Marriott International merged with Starwood Hotels and Resorts in
order to achieve huge customers base and generate revenues within shorter period of time
through offering quality services. Here are the some impact of such integration on their
functioning:
Reduction of independent: When two large companies merged together then it means they
are agreed to make mutual decisions for the betterment of an organisation. This will restrict the
freedom of one organisation to take their decision on their own as if they want to implement its
new ideas to maximise the satisfaction level of customers then it required to take permission
from the managers of other organisation.

Increase in market share: Merging two companies such as Marriott International and
Starwood Hotels and Resorts, it makes easy for them to capture huge market share due to having
more capabilities to fulfil the needs and requirements of targeted clients.
Improved quality: Merging of two companies means merging of two minds which help
market in getting new and innovative products that will help in maximising the customer
experience.
TASK 3
3.1: Rationale for selected project
Hospitality sector is one the fastest growing industry which seems to be more profitable
business for entrepreneurs who decided start a new business (Nunkoo, Gursoy and Ramkissoon,
2013). In order to enter into hospitality industry, the owner of business gets various benefits in
terms of exploring many business and select an appropriate one which ensures them to get
maximum profitable result. Such businesses includes restaurant, pubs, hotels, clubs etc. The
development of rationale can be better understand with a suitable example given below:
As a Junior Consultant of PKF Hotel experts, the role is to establish a rational for a 3 star
hotel “The Royal House”. Rationale development involves different phases which are
determined as under:
Phase 1: Development
1. Concept:
General idea: The thought here is to begin a medium scale hotel planning to provide stay
facilities with standard services to their clients. In United Kingdom, the hotel would be situated
at any prominent area where more number of traveller come and need to stay. Due to rich culture
and phenomenal grand wonders, a huge number of individuals comes to visit the nation
consistently. Opening up another lodging is turned out to be exceptionally invaluable to an
Entrepreneur. Taking favourable position of this, the proprietor of lodging "The Royal House"
has choose to build up a business which is a 3 star hotel that will cook particular needs and
necessities of guests and local residents also who are living in London and lives boisterous way
of life and needs to design long get-aways with family just to engage and revive themselves
(Scott and Orlikowski, 2012).

Objectives: The prime objective of Hotel Royal House is to maximise the experiences of
guests by facilitating them through providing standard quality of hospitality services.
Vision: "To be the notable hospitality organisation in world through creating values for
members, proprietors and additionally visitors."
2. Market Research
Significance: With the help of market research, the predominant patterns of market can
be dictated by managers of The Royal House. This causes them in discovering taste and
inclinations of potential and existing customers and additionally encourages them in assessing
demanded services of clients so that they empower to offer same services to maximise their
satisfaction level.
Stages: Market Research incorporates 6 consecutive stages, i.e., issue definition,
improvement of methodology to specific issue, create research structure, accumulation of
information and report presentation.
Area of research: Here, the study is made to recognize customer's desires from The
Royal House so that proper methodologies and plans can be effectively planned (Sparks, Perkins
and Buckley, 2013).
Research tools and methods: Since the Hotel is totally new along in market so the
information and data will be gathered with the assistance of auxiliary sources like censuses, web,
media sources and so on.
3. Target Market:
The target market for The Royal House includes middle class people who visits United
Kingdom every now and again. Therefore, every one of those tourists or visitors who requires to
buy standard services will taken into consideration. Essentially, their main target are voyagers,
school gatherings, recently married couples, firms for gatherings and meetings.
3.2 Development of plan for cordiality business
Stage 1: Development
Location: The area will be the core of city, close to London eye. It is advantageous for
the proprietor to set up hotel in that area as London Eye is an exceptionally mainstream goal
among tourist. Because of its simple openness and focal area, visitors can undoubtedly reach to
the hotel.

Scale: The hotel is medium sized in which total 30 rooms are accessible that are cooled
with appended washroom. The hotel additionally gives some advanced services to visitors like
sofa, bed, LED TV, smaller than expected refrigerator, twofold bed and so forth. Alongside this,
some other rooms additionally there in the hotel that have an additional alternative of gallery see.
It additionally offers tourist guide services, standard quality of foods and conveyance to guests
(Zeng and Gerritsen, 2014).
Funding: As hotel Royal House is new, the greater part of the assets are raise by outside
sources like creditors, bank and so on. Some sum is get from bank while the remaining is from
ones possess take. Its proportion would be 80:20 which implies, 80% of cash is organized
through outside sources and the remaining is 20% is contributed by proprietor.
Products and services: Numerous services will be provided by Hotel Royal House which
includes average room offices with LED, Wi-Fi and so on. They additionally give room and
clothing services to 24 hours. A few occasions are likewise sorted out gaming zone and
otherworldly shows for youngsters, exercise center, spa, swimming pool and live music for
young visitors.
Licensing: To build and operate a new hotel business, different licenses and enlistments
are required like exchange permit, food business permit, building grant, business enrollment, fire
security allow and so forth. Preceding open up new venture, the proprietor of Hotel Royal House
requires to contemplate every single such need (Hospitality Provisions, 2018).
Stage 2: Design
Ambience: The hotel's administration group principally underline on giving exceedingly
beautified looks and extravagance ambience for attracting customer and direct them towards
luxurious accommodations facilities. In conference hall, gathering and dining area, they can put
shaded lights. Since the target group of The Royal House is middle class individuals, it is
fundamental that the ambience ought to be great yet simple and rich that gives royal inclination
to visitors.
Culture: It is includes the environment exist in restaurant and bars. In order to create rich
and sound culture, it is required by administration and other delegates of hotel to put a lot of
efforts towards it.
Brand: In request to keep up great brand picture in market and among customers, it is
required by administration of Hotel Royal House to give amazing services to visitors.

Interior and exterior: The internal and external structure of hotel helps in attracting
visitors and direct them towards its services. It requires very much outfitted interior that gives
royal experience to visitor regardless of whether the hotel is 3 star appraised. In lobby area, they
can include glasses and lights and can put chandeliers to make it more alluring (Di Pietro, Di
Virgilio and Pantano, 2012).
Functional areas: Different functional areas of hotel incorporates sustenance and
refreshments, housekeeping, human asset, fund, front office, deals and marketing and tasks
division.
Customer flows: It help in researching the number of customers passing and coming into
such hotel. It is a job of business supervisor to distinguish exact stream of customers in the
association.
Link to target market: Population of middle class individual is higher and they are
likewise normal visitors that empowers the organization of "The Royal House". Target customer
of the organization is middle class individual that is better for the business to amplify their deals
and profit by giving services to the general population at sensible cost.
Customers with individual needs: Requirements and needs of visitors are changed in
frequent basis. Therefore, hotel is expected to give better and quality services according to
customer's needs and requirements.
Sustainability: In order to achieve strong sustainability and brand image in market, The
Royal House can give different services like appealing rebate discounts to its initial 10
customers, correlative services, for example, pick and drop benefit from airplane terminal, direct
services and numerous other. Also, hotel can give coupons to their customers which they can
save money on their next voyaging.
Stage 3: Operation
Staffing by functional areas: It is distinguish as one of the essential functions for all
undertaking and its manager. With the assistance of this they can choose skilled candidates
according to necessities of functional areas. For hotel, staffing is require to recognize work
profile or perceivability that will be executed by selected candidates. Close to this, workshop and
training sessions will be sorted out with the end goal to upgrade abilities and aptitudes of
candidates. The hotel will personnel individual on different position including servers, cleaners,
gourmet specialists secretary, chiefs and so on.

Specialist qualifications: To give high and better quality in services to the customers, the
Royal house will enroll individuals with master capability so great service quality will be given
to customers. In position of housekeeping staff, required degree in housekeeping. In
administration position, MBA is required for the candidates.
Staffing issues related to seasonality: Seasonal varieties are recognize as a testing reality for
different associations. In peak season, hotel confront short-staffed circumstance on the grounds
that in this steward needs quit or take off. It create burden on existing specialists which affect on
business tasks and exercises in an immediate way (Wu and Ko, 2013).
Cultural diversity and different approaches to manage issues: In this, hotel will give
solid and benevolent workplace in order to handle diversity creates at work environment. Every
employees working in hotel should be equally treated . Apart from this, customers having
different cultures and backgrounds should have right to get services given to some other prices at
the same prices.
Recruitment policies and procedures: It implies choosing and selecting talented and
proficient individuals who can give their best towards achievement of business objective and
goal. In Royal House, task is allotted on the basis of skills, ability and competency of
representatives. Prior to picking any individuals all standards and control must be impart to them
in clear way.
Compliance with legislation: Each laws and directions are figured by the administration
of United Kingdom. It is apply by hotel with the end goal to run their tasks and exercises in
fruitful and viable way.
Promotional activities: There are various kinds of promotional activities which can be
adopted by The Royal House to promote its brand along with its services, for example, social
media, advertisements, print media and numerous other.
Pricing strategies: It is crucial factors which can shift the customers towards its rivals..
The Royal House is adopting economy pricing strategy in which they pitch their services at
sensible cost to the middle class individuals.
CONCLUSION
It has been concluded from the above project report that the growth and success of
hospitality sector is very much depend on the support of travel and tourism business. These two
businesses are interrelated and interdependent on each others whose main objective is to

maximise the travelling experience of visitors by providing the standard quality of services.
There are Vertical and horizontal integration of hotel has offered some benefits and drawbacks
which can be overcomes by taking some actions so that that high sustainability and profitability
can be achieved within shorted time period.

REFERENCES
Books and Journals
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to travel: A medical tourism perspective. Journal of Destination Marketing &
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Brotherton, B. ed., 2012. International Hospitality Industry. Routledge.
Di Pietro, L., Di Virgilio, F. and Pantano, E., 2012. Social network for the choice of tourist
destination: Attitude and behavioural intention. Journal of Hospitality and Tourism
Technology. 3(1). pp.60-76.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and
tourism. Taylor & Francis.
Kropinova, E. G., Zaitseva, N. A. and Moroz, M., 2015. Approaches to the assessment of the
contribution of tourism into the regional surplus product: case of the Kaliningrad region.
Mediterranean Journal of Social Sciences. 6(3 S5). p.275.
Leung, D. and et. al., 2013. Social media in tourism and hospitality: A literature review. Journal
of travel & tourism marketing. 30(1-2). pp.3-22.
Mohamad, W. N., Omar, A. and Haron, M. S., 2012. The moderating effect of medical travel
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Nunkoo, R., Gursoy, D. and Ramkissoon, H., 2013. Developments in hospitality marketing and
management: Social network analysis and research themes. Journal of Hospitality
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Scott, S. V. and Orlikowski, W. J., 2012. Reconfiguring relations of accountability:
Materialization of social media in the travel sector. Accounting, organizations and
society. 37(1). pp.26-40.
Sparks, B. A., Perkins, H. E. and Buckley, R., 2013. Online travel reviews as persuasive
communication: The effects of content type, source, and certification logos on consumer
behavior. Tourism Management. 39. pp.1-9.
Wu, H.C. and Ko, Y.J., 2013. Assessment of service quality in the hotel industry. Journal of
Quality Assurance in Hospitality & Tourism. 14(3). pp.218-244.
Zeng, B. and Gerritsen, R., 2014. What do we know about social media in tourism? A review.
Tourism Management Perspectives. 10. pp.27-36.
Online
Hospitality Provisions. 2018. [Online]. Available Through: <http://www.nshm.com/career-in-
travel-tourism-management/>.