Hospitality Provision in Travel and Tourism Sector

This report explores the interrelationships between hospitality and wider travel and tourism businesses, the implications of integration to the hospitality industry, and the rationale for a selected project in the hospitality sector. It also discusses the development, design, and operation stages of the project. The report focuses on Savoy hotel, a luxury hotel in London, and its role in the growth and development of the hospitality sector in the travel and tourism industry.

HOSPITALITY
PROVISION IN TRAVEL
AND TOURISM SECTOR

TABLE OF CONTENTS
INTRODUCTION............................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2............................................................................................................................................6
2.1 Implications of integration to hospitality industry ...............................................................6
2.2 Integration affecting hospitality sector .................................................................................9
TASK 3..........................................................................................................................................10
3.1 & 3.2 Rationale for a selected project justifying decisions linked with target market and
also considering operational requirement of hospitality firm ...................................................10
Stage 1 – Development .............................................................................................................11
Stage 2 – Design .......................................................................................................................12
Stage 3 – Operation ..................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES...............................................................................................................................14

INTRODUCTION
Hospitality industry is considered as one of the biggest service industry which provides
major facilities like lodge, event planning, Themes Park and some other additional fields in travel
and tourism industry. Further, this industry plays its important role in travel and tourism sector
and contributes their utmost effort in growth and development of the nation. Hospitality
provisions on the other hand is a set procedure which is followed by employees who are working
in the hospitality firms so that they can provide best of services in order to maximise wants of
customers (Hall, 2013).
Taking the above topic into consideration, this present report has been prepared on Savoy
hotel which is a luxury hotel situated in City of Westminster in the Central London. Savoy is the
first luxury hotel in Britain who introduces the electrical lighting in whole of their buildings. This
present report will focus on understanding major relationship which exists between hospitality
sector and operations in the travel and tourism. This document will also showcase integration
which influences the hospitality firm.
TASK 1
1.1Interrelationships between hospitality and wider travel and tourism businesses
Hospitality industry is a broad sector where different types of firms are engaged in
carrying their operations and contributing their efforts in growth and development of the nation.
Further, it is also considered as a billion dollar industry and it is treated as one of the emerging
market in the current century (Janta, 2011). Moreover, this industry is also treated as the largest
revenue and foreign exchange earners because there are many tourists who come from different
nation. These travellers are in form of leisure and business. Further, this sector is also regarded as
largest employment generator sector because it encourages and develops more jobs year by year
in different fields and departments.
Moreover, tourists are considered as base of revenue for hospitality firms and they come
to a particular destination to visualise the natural beauty, architectural designs and monuments.
Generally, tourists who usually arrive at a particular location, gets dependent on tour operators
and hospitality firms in a belief that they will give them best the hospitality services according to
their needs and demands. Further, tourists for a particular location generally increase year by
year because of increase in their income level and also designation (Jalilvand and et.al., 2012).
However, it is true that revenue of hospitality venture depends upon the tourists and it is a

customer oriented industry. Further, firms have to provide best services so that they can become
loyal e for the business enterprise. This will also result into increasing productivity, revenue and
brand image for the hospitality firm. Savoy hotel is located in central London and is a hub of
tourists because all major destinations are near from the cited hospitality firm. Manager of
hospitality firms sets plans and policies in such a manner so that the organization achieves their
goals and objectives in the cost effective manner (Shaw, Bailey and Williams, 2011). Savoy front
office department plays an effective role because they are the one who treats the customers very
first and focuses on satisfying their needs and demands with different services provided by
Savoy.
However, it is found that there is competition in this sector because there are various
firms who are fighting to get competitive advantage over rival competitors and are working in
same industry. Further, their also exist many organizations who possess same amount of capital
and policies within the venture. Their major aim is to get more customer attraction and also
develop immense goodwill in hospitality sector. Savoy usually attracts their customers with the
help of different discount vouchers and offers (Darcy, 2010). They promote the same with the
help of social media because firm knows that a large mass of audience use social media
applications and catching their attraction will definitely increase their productivity. Moreover,
Savoy is effectively operating in London and local resident are aware of the market share and
goodwill they maintain. Hospitality ventures consists of different types of accommodation
services in the form of restaurants, service apartments, motels, resorts, bars, nightclubs, bed and
breakfast, etc. Thus, it is evident that hospitality industry plays an important role in the growth
and development of country.
Moreover, there is positive relationship between tour operators as well as hospitality
sector. Both these ventures are linked with one another and focus on increasing their profit,
revenue and goodwill. Further, manager usually frames plans and policies so that organisation
achieves their goals and objectives in an effective manner (Kayar and Kozak, 2010). Tour
operators are usually linked with these hospitalities firms so that they can give their clients best
services which will satisfy their needs and demands in cost effective manner. Moreover, hospital
organisation also likes to tie up with these tour operators to improve their efficiency and market
share. Further, the hospitality firm has gained more attraction of clients and global ventures like

Hilton; Ritz-Carlton has started giving 5-6 star services which is maximising customer’s needs
effectively.
The travel and tourism industry consist of tour operators who design effective tour
packages so that audience gets chance to explore the world with best services and low cost. In
order to satisfy customer’s needs, these operators get connected with hospitality ventures and
give customers accommodation as per their budget and suitability. There are many tour operators
from around the globe who are connected with Savoy hotel and staff of cited firm doing
significantly well in order to meet their needs and wants of customers (Smith and Puczkó, 2014).
Moreover, there are types of travellers who usually visit a particular destination or
location. One is leisure travellers who usually visit a particular destination with their loved ones
or family members to spend their vacations. The other is the business travellers who usually
travel to attend the meetings, conferences, seminars and different programs. Business
organisation usually approaches to event manager or company to conduct meeting at the best
location. Event manager chooses the best of hospitality firm which is compiled with all the
necessities which is necessary required in conduction of meeting. Moreover, there are 25
different parameters in travel and tourism sector and out of them accommodation, air travel and
food and services are considered as most important because these three generally constitutes 50%
of the total output generated by the hospitality firm (Backer, 2012).
Moreover, perception of customers plays an important role in their decision making
because it is on them that what sort of accommodation and services they are willing to use. It
also influences productivity and operation of Savoy hotel. Further, firm cannot force individual
to choose their services. They can only attract audience with the help of different advertisement
and promotional activities which seeks their interest. Savoy usually uses promotional vouchers,
discount vouchers and cards for increasing revenue of the firm. The employees of Savoy hotel
are skilled and talented who usually works with efficiency and dedication to achieve the goals
and objectives. Further, by rendering different types of services to customers, they achieve the
hearts of customer and with this they become the loyal user of the hotel. Further, hospitality
sector has seen immense growth and contributed their best in nation development in the form of
increasing the employment which is giving individual a source of earning (Goodall and
Ashworth, 2013). Individuals are employed in different services of hospitality firm and they are
working with the utmost interest so that they can achieve their individual as well as organisation

goals and objectives. Thus, it can be concluded that hospitality provisions and travel and tourism
sector are linked with one another and emphasize precisely on increasing growth and revenue for
one another.
Savoy hotel is usually praised more by clients because hospitality firm has team of
dedicated staff members who works effectively in achieving organisation goals and objectives.
Further, the employee’s morale is also high because HR manager gives them different types of
motivational aspects time to time (Darcy and Pegg, 2011). This usually makes them dedicated
towards the operations and with this Savoy's employee satisfies customers in an effective
manner. Cited firm render services in form of accommodation, housekeepers, food, bartender,
etc. Savoy has made their official website attractive and with online booking, clients can book
room in advance and can pay for the same with the help of debit and credit card.
However, it is also found that the interrelationship between hospitality firms and travel
and tourism organisations exists from decades and the same depends on the customer who would
like to spend their time by reaching to the particular destinations. It is necessary for Savoy hotel
to effectively promote their brand with the help of different types of promotional tools and also
by getting connected with the tour operators (Gu, Ryan and Yu, 2012). Increase in revenue and
goodwill will enhance their operations and more clients will be attracted towards the cited
hospitality firm.
TASK 2
2.1 Implications of integration to hospitality industry
Working as a Assistant manager in Savoy hotel, it is necessary for me to look after
growth and development of hospitality venture so that most of the customers gets attracted
towards the same by seeing the property which is situated in Central London. However, with
increasing recession in some countries, the travellers were less last year and due to this the
financial results of the cited firm were not good (Millar, Mao and Moreo, 2010). Moreover,
increasing competition within the hospitality industry is proving to be tough or the top
management teams of the Savoy hotel. However, for excelling performance of Savoy hotel,
managers have to come up with the best of the plans and policies by considering customer's
aspect as well. This will enhance firm’s revenue, their growth and productivity. Moreover,

organisation can also evaluate techniques or policies implemented by the competitors firm so that
they can come up with best to improve their performance.
Furthermore, it can be seen that hospitality firm is focusing on concepts of integration
and also emphasize on improving their overall services so that more clients can be attracted
towards the same. This sort of integration will assist Savoy hotel to increase their scale of
operations and functions. Moreover, this integration plays an important role for hospitality firm
and it is necessary for HR manager to make a base of loyal customers continuously so that hotel
does not experience any type of recession in their operations (Chand, 2010). This will help them
in maintaining their goodwill and performance. Moreover, with this the firm will also able to
boost their performance and they will also build a competitive advantage over other hospitality
firms.
Further, it is found that there are two types of integration for hospitality venture and HR
manager of Savoy hotel has to consider the same to enhance their operations effectively. These
are horizontal and vertical integration and the description of the same has been given down
under: Horizontal integration:
This integration is known as rising and considering different aspects into one single
market so that firm can be able to extend their operations and can reach a mass of people with
their productive services. It can be beneficial for Savoy hotel because the organization can focus
on merger with other hospitality firms to extend their market share and goodwill (TRAVEL,
TOURISM & HOSPITALITY SPOTLIGHT, 2016). This will suddenly help hospitality
organization to tap large customers which will also assist the company to increase their revenue,
productivity and brand image.
 Vertical integration:
In the vertical integration, hospitality firm usually focuses on finding or acquiring the
supplier company. It is usually because it will reduce their operational cost and also improves
level of profit generation (Pulina, Detotto and Paba, 2010). Moreover, this integration is opposite
of horizontal and it states supply chain with having more than one management who produces
different types of products and services. For implementing such integration in their operations,
manager of Savoy hotel has to scan external environment more precisely so that they can identify

their suppliers. They will then play an important role in fostering growth and development of
business venture.
However, it is found that Savoy hotel will majorly focus on horizontal integration as
compared to vertical integration. This is because by acquiring new organisation, firm will be
able to enhance their revenue and productivity. Further, hospitality organization which will be
acquired might have existing market share as well so this will help Savoy hotel in enhancing
their performance (Tsai and Chen, 2010). Moreover, it is found that the level of integration has
been eventually increased as tourist destinations like London is the major attraction for various
tourists who comes from different location. Thus, it is utmost duty of Savoy hotel to satisfy
customer’s needs in an effective manner which will help them in enhancing organisation
performance. Further, being a reputed hospitality brand in London, top executives of cited firm
can take initiative in acquiring some of bed and breakfast, casinos, restaurant for excelling their
brand image. By employing effective workforce, firm will be able to achieve their new plan in
the more precise manner.
Further, it is found that there are major inferences with respect to integration. Due to this,
some problems are faced by hospitality firms and taking these points into consideration, some
justifications have been discussed down under:
 With the integration of hospitality firms, there will be huge pressure on the small
hospitality firms because by acquiring one unit by parent venture, their operations will
increase and with that they will be able to attract more tourists (Hjalager, 2010). Further,
small hospitality firms do not available with that much of fund as compared to global
firms who have their effective operations throughout the globe. With so much pressure
from these global firms, small firms either have to merge with another firm or are on
verge to shut down their operations.
 Further, this integration also influences performance of the organization that has different
types of organisations under their dominance. In vertical integration, it is found that firm
usually control their different outlets or restaurants which exist (Lashley and Morrison,
2013). However, business enterprise at times face various problems because if a
particular segment is facing any sort of issues, then the operation of whole unit gets
shattered and the hotel goes into crisis. With this, hospitality firm's efficiency,
productivity and revenue get affected.

 With merger, sometimes their exist interest conflict as well because the firm with whom
Savoy got merged might comprises different mission and vision. Apart from this, they
have their own mission and vision which generally differ from mission and vision of the
Savoy (Stephenson, 2014).
2.2 Integration affecting hospitality sector
Integration influences Savoy performance quite an extent because when any hospitality
firms get merged with the small organisation, they are entitled as a single venture. Thus, this sort
of integration helps the cited organisation to expand their retail operation both in domestic as
well as in international market. Further, it is necessary for the venture to tap small hotels and
resorts because they cannot approach to bigger hospitality firms as they have their own effective
operations throughout the globe. Further, their market share, revenue and goodwill are also high
(Kim and Hardin, 2010). Firm also possess large customer base and therefore is not possible for
Savoy to approach these ventures. Moreover, by owning small hotels or resorts, firm will be able
to enhance their market share and with this, the acquired organisation will be considered as
working under the Savoy hotel group. It will attract more customers and firm will be able to give
effective services to their customers.
Moreover, reputed hospitality firm like Savoy has to choose best of integration step and
the manager should consider that the decision so undertaken does not influence current goodwill
of the organization. Thus, it is necessary for the manager to scan external environment
effectively and must check the response of the customers whom firm is planning to acquire. This
will generally give Savoy hotel a competitive advantage and they will be able to achieve their
goals and objectives in an effective manner (Ekinci, Dawes and Massey, 2008). Tour operators
also like to book a single hotel only for a particular destination because it will be hectic for them
to take travellers from hospitality firm to another for their comfort and relaxation. Tour operators
like Thomas Cook, TU, etc. used to tie up with a single hospitality organization who renders
services in the fields of accommodation, food, club, spa, swimming pool and different others.
However, there is some major impact of integration on hospitality sector and this can be seen
through different perspective:
 Reduction in the financial resources:
With the rise in implication of the integration process, their exist high impact in business
and also the market which is acquired by the hospital organisation. As stated, Savoy cannot

purchase ventures that have sound financial position and effective operations in UK. Moreover,
cited hospitality firm has to see that which venture is going into losses and also the location
where they stand. Further, if Savoy planning is to get merged then not much of investment will
be required by the Savoy but if they are planning to purchase that business then the profits of the
organisation will be affected (Cormany and Baloglu, 2011).
 Business issues:
The process of integration generally include hospitality firm who are functioning their
operation in the same industry and also providing their services in the same target market.
Manager of Savoy hotel has to consider that understanding with merging business should match
with their because if it does not happen, then their will be conflicts and disputes with the firm
which is acquired (Darcy, 2010). Thus, the understanding between the two should match with
each other and this will help Savoy hotel to perform with dedication and efforts.
 Increasing demand of hospitality services:
The increasing expectations from the customers are generally influencing management of
Savoy hotel to make necessary changes in the venture so that they can win hearts of their loyal
and target new customer. Further, with the integration, firm will be able to give better services in
an effective manner. Currently, the company has almost 267 rooms in the Savoy hotel with
butter type services to guests. Moreover, hospitality firm comprises of spa treatments, private
pool and 24 hour gym facilities (WELCOME TO THE SAVOY, 2016).
TASK 3
3.1 & 3.2 Rationale for a selected project justifying decisions linked with target market and also
considering operational requirement of hospitality firm
For setting up a hospitality based project, R&D department of hospitality venture plays an
important role because they take initiative and also plan for new construction work. Further,
setting up of new project eventually requires lot of paper work and also it needs fund. A wrong
decision taken by team can lead into losses for long years. Thus, it needs to be prior and effective
as well. Further, for constructing a plan for new hospitality based project, Ryan hotel is taking
initiative to set their operations at Marylebone Rd, London which is near to Madame Tussauds
London. Further, the land for project is approved by the government and within few months hotel
will start the construction process and it will take almost a year to get the work completed.

Stage 1 – Development
Ryan hotel is taking this initiative to satisfy needs and demands of customers in the cost
effective manner. Firm will focus on giving all facilities which a tourist is in need of and the
venture will also maximise their interest and will make them loyal customer of the new firm.
Further, the construction done is near to Madame Tussauds which is a popular tourist destination.
This will attract customer to stay in heart of the London as it will also help tourists to cover
distance easily. Organisation mission is to lead hospitality sector by starting their operations.
Moreover, the main aim is to construct hotel and resort in such a way that it attracts eyes of large
customer base (Kusluvan and et.al., 2010).
Market research:
Manager of cited firm has to do specific market research regarding location and also for
the activities which firm is planning to undertake. Further, Ryan hotel will assign best architect
to design the sketch of the firm so that they can have the best of the development which attracts
the eyes of tourists.
Target market:
Cited firm will segment the organisation products as per the client’s interest and with it
the hotel will be able to make base of loyal customers from the starting time period only. Further,
research team will also focus on conducting secondary market research to know that what
customers will be in need of (Tsang, 2011). By making changes accordingly, firm will be able to
attract customers with the commencement of their operations.
Location:
It is situated in Marylebone Rd, London which is near to Madame Tussauds London. This
venue is visited by large number of tourists from whole around the globe and thus the
architectural design will touch eyes of their tourists as well.
Scale:
Size of operations which Ryan hotel and resorts are undertaking is broader because the
hospitality firm will give all necessary services which satisfy the customers’ needs. These are in
the form of accommodation, restaurant, bar, gym, spa, swimming pool, etc.
Funding:

The fund which manager generally expecting after the completion of project is around
£850,000. The owner of the property will arrange this huge fund from his own savings, by taking
loan from bank and also taking help from some of the corporate and normal friends.
Licensing:
Owner will work by undertaking and considering all rules and regulations which are
formed by the government (Xiang and Gretzel, 2010). For instance, if firm is selling liquor, then
prior permission will be taken from local body of London.
Stage 2 – Design
Ambience:
Ambience of property will give a cherishing vision to clients from their balcony as they
will be able to see natural beauty of the place.
Interior
Interior of the hospitality firm will be well decorated with Italian finish and granite on the
floor
Exterior:
The paint which firm will use will be of high quality and the same will resist for long
years.
Functional areas:
Ryan hotel and resorts will focus on operations like restaurant, bar, spa, gym, etc.
Stage 3 – Operation Staffing as per functional areas
Ryan will emphasize on recruiting and selecting employees who possess minimum 2
years experience in the hospitality line
 Qualifications required
Candidates must be a graduate or post graduation from a recognized university and
should have a certain degree in hotel management.
 Recruitment policies
Policies formed by HR department will strengthen workforce needs because the same is
done by considering motivational aspect of the employees.
 Compliance with legislation

Ryan hotels and resorts should follow policies and procedures which are set by local
government.
 Way to promotion
It can promote their hotel and resort in the customers eyes with the help of advertisement
and also using the social media channels.
 Pricing
Top executives of Ryan hotel will set price of products and services by considering
income level of individuals.
CONCLUSION
From the above description it is clearly evident that Savoy hotel has its effective
operations in UK and firm has to expand their operations by considering different aspects in their
mind. This report concluded that hospitality provisions are necessary for the firm so services can
be given to customers which will satisfy their needs and demands in an effective manner. Present
report also shadows on the concept of horizontal and vertical integration and also discussing that
why it plays an important role in growth of the venture. At last, this report concludes a business
plan for establishing Ryan hotel and resorts.

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Online
TRAVEL, TOURISM & HOSPITALITY SPOTLIGHT. 2016. [Online]. Available through:
<https://www.selectusa.gov/travel-tourism-and-hospitality-industry-united-states>.
[Accessed on 28th June, 2016].
WELCOME TO THE SAVOY. 2016. [Online]. Available through:
<http://www.fairmont.com/savoy-london/>. [Accessed on 28th June, 2016].
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