Hospitality Provision in Travel and Tourism Sector: A Comprehensive Analysis

This report delves into the intricate relationship between the hospitality and travel and tourism sectors, examining the role of PKF hotel experts in providing comprehensive services. It analyzes the implications of integration within the hospitality industry, exploring its impact on business strategies and customer satisfaction. Furthermore, the report develops a rationale for a Starbucks coffee shop project, justifying decisions linked to the target market and outlining a comprehensive operational plan, including human resource allocation and sustainability strategies.

Hospitality Provision in Travel and Tourism Sector
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Contents
Introduction.................................................................................................................................................3
LO 1............................................................................................................................................................4
1.1) Discuss the interrelationship between hospitality and wider travel and tourism business............4
LO 2............................................................................................................................................................6
Executive Summary.................................................................................................................................6
Introduction.............................................................................................................................................7
2.1) Analyze the implications of integration to the hospitality industry...................................................8
2.2) Discuss how integration has affected the hospitality business........................................................10
Conclusion.............................................................................................................................................12
Task 3........................................................................................................................................................13
3.1) Develop a rationale for a selected project clearly justifying decisions linked to target market.......13
3.2) Develop a plan for the hospitality business which includes the operational requirements of
business in relation to the human resource allocation............................................................................16
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19
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Introduction
This report deals with the relation between the hospitality as well as the travel and the tourism sector of
the PKF hotel experts and also the ways through which the customers can be attracted by providing them
various services and products. The hospitality sector is one of the major parts of the travel and the tourism
sector. In today’s scenario, the hospitality industry has achieved the growth by handling the customers
coming from the diverse places. They provide them the comforts as well leisure through the satisfactory
services. The importance of the travel and the tourism sector is also increasing with that of the hospitality
sector. The particular plan has been developed which shows that how the new business of Starbucks will
operate in the competitive market.It also focuses on how the integration affects the hospitality business
which helps in analyzing the business strategies. With this also how the pricing strategy affects the
demand is depicted.
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LO 1
1.1) Discuss the interrelationship between hospitality and wider travel and tourism
business.
Topic: The role of hospitality industry within travel and tourism sector.
Date:05-04-2018
Introduction
PKF hotel expert is one of the leading firms in providing hospitality, tourism as well as leisure
consultancy. It is located in 300 locations across 100 countries. It was founded in 1869 and was
the first company offering the consulting services as well as the financial and benchmarking
services (REM Online.com, 2015). They provide quality of services to its clients by providing
unbiased services.
The hospitality industry is one of the parts of the travel and the tourism sector. It is basically
responsible for providing the places for accommodation as well as the foods such as resorts,
hotels and theme parks (Roblchaund, 2017). The main aim the hospitality sector is to engage the
satisfaction of the customers by offering them the best quality of the services. This industry is
one of the highest incomes driven economy in the world (REM Online.com, 2015). With the
globalization, the hospitality sector has also been one of the emerging sectors in the economy. If
the services provided by the PKF hotel experts are found satisfactory to the customers so the
promotion of the business will be done through the word of mouth.
Travel and tourism sector is a part of the activity that the person does for the entertainment
purposes. In today’s world, the travel and the tourism sector has gained an importance as it
provides the satisfactory services to the customers availing the services (Johnson, 2018). The
tourism is based on the small businesses which are served by the hospitality sector. For example:
If the customers traveling to some other city to spend their leisure time so the airlines in which
they are traveling comes under the travel and the tourism sector but the hotel in which they will
stay will come under the hospitality sector (Mok, et. al., 2013).
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Image: PKF Hotel expert
Source: REM Online.com, 2015
Interrelationship:
The hospitality industry, as well as the travel and the tourism sectors both, are interrelated with
each other as both works with the same aim of providing the satisfactory services to the clients
by offering the high quality of the products. The hospitality industry is the subset of the travel
and the tourism sector (REM Online.com, 2015). The travel industries have to focus on the
various factors so that the customers can get the satisfactory services. Some of the factors are
boarding, lodging, and hotels. They both provide the excellent services so as to attract the
customers. A PKF hotel expert has looked upon all these factors so that the market share can be
captured. By capturing the market share the tourism sector will lead the economy to achieve the
growth (Malek, 2016). The interrelationship between the travel and tourism as well as the
hospitality sector is explained below:
Communication: The communication is one of the basic relationships between both the sectors
that are travel and tourism as well as the hospitality sector as capturing of the market is totally
dependent upon the good communication skills (REM Online.com, 2015).The way of the
communication decides that whether to book the hotel with the respective client or reject it. So
for the PKF hotel expert, it is necessary to focus mainly on the communication so that the
customers get impressed and agree to avail the services. To make the better communication the
PKF hotel will also conduct the various seminars as well as the tanning sessions so as to the
skills of the employees as well the staff members get enhanced (REM Online.com, 2015).
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Packages relate to Holiday and Travel: Various agencies related to the travel and the
hospitality sectors provide the packages to the customers by keeping in mind the needs and the
demands of the customers. Customers usually prefer those packages which can be easily
accessible by paying the less amount of the price. The discounts and the offers are provided on
the packages to the regular customers (REM Online.com, 2015). The PKF hotel expert provides
various travel offers on the seasonal basis so that most of the customers get attracted and avail
the services. The PKF hotel experts provide various services to its clients such as the:
competitors review, funding solutions as well as the operational reviews.
The travel and tourism, as well as the hospitality services both, are provided by the PKF hotel
experts as the hospitality sector works in accordance with the tourism sector only. The
hospitality industry is the provider of the services which are for the tourism sector (REM
Online.com, 2015). The tourists visiting the hotels may demand the affordable packages
according to their budget. The customers may need the services according to their budgets such
as the lower budget customer may demand the 1 to 3-starhotels while the customers who have a
high amount of the budget available they may demand the 4 to 5-star hotels (Johnson, 2018). The
prices of the hotels offered also depend upon the accommodations such as guests who are
offering for the luxurious accommodations may demand all the amenities such as clubs and bars.
Without the travel and the tourism sector, the hospitality sector cannot exist, this gap occurs as
tourists who are visiting for the fun purposes will not find the place to accommodate. Therefore,
the decline in the customers for the tourism sector, in turn, will reduce the revenue of the
hospitality sector (REM Online.com, 2015).
Conclusion
So, it can be stated that the PKF hotel experts should mainly focus on the demands and the needs
of the customers so that the services offered can be customized accordingly. The hospitality as
well the travel and the tourism sector are related to each other as they both focus on the services
and the customer’s needs. The PKF provides both the personal as well as the professional
services so that the existing business can achieve the growth in the future by satisfying the
customers. Considering the customer first and the products as secondary will enhance the quality
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of the services provided by the PKF hotel expert.
LO 2
Executive Summary
This part explains the overview about the various mergers which have been taken by the companies so
that the overall turnover can be increased and the better services can be provided. The hospitality industry
has achieved the growth in terms of the developments. It also depicts that how the integration of the
companies can impact the business in the global market. The analyses have been conducted by taking the
examples of the recent mergers and the acquisitions which has captured the market in the hospitality
industry. The report has been prepared by taking the secondary data which was provided so that the
understanding about the mergers can be enhanced.
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Introduction
Under this part of the report implications about the integrating of the hospitality industry is
explained with that how this integration affect the business of the hospitality has also been
highlighted. By integrating the hospitality with the travel and the tourism sector the working of
the organizations can go smooth.
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2.1) Analyze the implications of integration to the hospitality industry.
The integration in the organization is done with the main focus on the increasing the economies
of scale by reducing the operating cost. To save the money for the long run, this is the best policy
(Mok, et. al., 2013). With the integration, the hospitality services will be provided in the better
and the economic way to the customers such as the Starwood Hotels was taken over by the
Marriott so now the services will be enhanced (Johnson, 2018). The integration can be done in
two ways:
Horizontal Integration: Horizontal integration is that where the organizations from the two
different industries come together and integrate to form the big company (Business Case Studies,
2018). This is basically done to maximize the amount of the profit by increasing the area of the
customer (Booker, 2018).
Vertical Integration: The Company is said to be vertically integrated when the company buys
another company from the chain of distribution or buys the supplier of its own company
(Jurevicius, 2013). This integration focuses on enhancing the skills of the interior employees
rather than hiring the external workers (Business Case Studies, 2018).
Implications of integrating into the hospitality industry:
The services of the hotels or the restraints should remain the same even after integration
otherwise it will impact the brand loyalty as well as the goodwill of the organization. For
example, The Starwood Hotel has been taken by the Marriott international so the services should
remain same of the Marriott otherwise the risk of losing the customers persists (Johnson, 2018).
The integration may also leave the bad impacts on the society as when the two big, as well as the
strong companies, merge together so there are always the chances that only the one will survive
which have the strong market share. This may increase the unemployment rate in the economy
by throwing the small companies out of the market (Mok, et. al., 2013).
The conflicts of the interests can also be attained while integrating as if two companies like
Blackstone and Hilton integrate so there exists the conflicts as both of them works with different
vision as well as a mission which in turn may affect the decision-making process of the
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organization. Globalization also plays the important role in the travel and the tourism as well as
the hospitality sector (Mok, et. al., 2013). Most of the revenue of the country is earned by the
international tourists as compared with that of the local tourists (Johnson, 2018). Major revenue
generator is the tourism sector as compared to that of the hospitality sector as the hospitality
sector is succeeded by the travel and the tourism sector.
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2.2) Discuss how integration has affected the hospitality business.
The integration of the organizations has affected the hospitality business in the many ways.
Through integration, the current situation can be predicted. The dynamic environment has made
the managers of the organization to reframe the policies accordingly (Malek, 2016).
Impacts of the Integration:
Quality: The process of the integration does not focus on the quality of the product. As,
employees of the organization do not follow instructions given by the new managers of the
organization so that may impact the hierarchical process of organization. The managers basically
focus on providing the quality services to its clients by analyzing the demands. For instance, the
Intercontinental Hotels Group has acquired the Kimpton Hotels and resorts so the workers of the
Kimpton Hotel may not follow the instructions given by the managers of the Intercontinental
Hotels Group.
Scale Economy: The operating cost can be reduced with the integration of the organizations. If
the Blackstone a private equity firm takes over the Hilton, at the initial stage the investment to
acquire the hotel is 26 Billion US$ but in future, the benefits will increase (Cohen, et. al., 2014).
This will increase as the investment firm has taken over the hotel so with the rise in the equity
prices so the revenue of the Hilton will also increase (Cohen, et. al., 2014).
The integration has also impacted the functions of the organizations as integrating of the two
competitors provides the better services to its customers. The best quality of the services will
increase the number of the customers visiting the organization. For instance as when the two
competitors Marriott hotels acquired Delta Hotel so the services will enhance and the monopoly
can be created in the market by leading the market share which in turn also reduces the number
of choices for the customers. When the strategies, as well as the policies, will be applied in the
organization's integration process so the efficiency, as well as the effectiveness, will be increased
by delegating the authority (Cohen, et. al., 2014). The cost, as well as the expenses of both the
organizations, will be reduced and hence the revenue and the profitability will increase.
Optimally utilizing the resources by the Marriott hotel will increase the overall performance of
the organization and will also bring the innovative ideas in the organization.
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So, the integration of the various businesses will help in providing the quality service with the
help of diversifying business in the other countries as well (Mok, et. al., 2013). New services will
be provided which in turn will increase the transparency in the organization as well as will lead
to the sustainable success (Malek, 2016).
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Conclusion
It can be stated that the due to the globalization the trade between the different countries can be
enhanced which in turn increases the revenue of the country. The integration of the economy
provides various benefits such as the quality can be enhanced and the standard products can be
sold at the various branches.
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Task 3
3.1)Develop a rationale for a selected project clearly justifying decisions linked to the target
market.
The rationale can be justified by taking the example of the Starbucks as an example.
Concept: The idea is to open the coffee shop Starbucks which will be opened at the peak
location of the UK (Starbucks, 2018). The main objective of opening a coffee shop is thatthis
product nowadays is in very high demand as the Starbucks has its owngoodwill which will retain
the existing customers and will also attract the new customers (Devault, 2017). In the
competitive market brand loyalty is the basic factor which will influence the decisions of the
customers opening the sub-branch of the coffee shop will retain the customers. The business will
provide the better services both to the lower as well as the middle-class income groups. For
expanding the market it is necessary to perform the appropriate market research (Devault, 2017).
The main mission is to inspire the human by providing one cup to one person as well as the one
neighbor at a time.
Image: Starbucks Store
Source: Meyer, 2017
Market Research: It is the first step which will be performed before starting any business. For
conducting the market research the various questionnaire will be prepared and the personal
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interview will be conducted of the individuals living in the area where the business has to be set
up so that the needs and the wants can be determined (Haskova, 2015). Through this, the
demands of the customers can also be identified which will meet the expectations of the
customers. The price for the product will be set at the affordable price so that the customers can
buy it. The secondary data will be taken from the Starbucks data to conduct the research
(Haskova, 2015).
Target Market: The target market for opening the Starbucks will be the middle and the lower
income group as they are more attracted to the discount offers provided by the business in the
products. The people of the younger age groups from 18-24 years are mostly targeted as they are
less loyal to coffee yet (Haskova, 2015). The store of the Starbucks will be opened on the first
floor of the commercial buildings. The coffee will also be sold through various channels of
distribution to target the office places, restraints, hotels as well as the colleges.
Location: The location where the Starbucks will open is the Charing Cross Road, London
(Starbucks, 2018). The idea to open the Starbucks at the particular location is that it is the peak
location where the number of the youngsters can be catered.
Scale: The size of the business as well as the market will be kept limited that is the small size at
the initial stage so as to evaluate the demand for the product and once the sale will increase with
this the market share will also increase. There will be a hall which will have the capacity of
handling the 100 customers at a time (Haskova, 2015).
Funding: The funding for the project will be made available partly from the banks in the form of
loans and a half from their own pocket. The own funding allocated will amount to be£1490
approximately and the amount borrowed from banks will be £14706 approximately (Starbucks,
2018).
Products and Services: The products and the services offered by the Starbucks are coffee such
as coffee K- Cup pods, beverages, smoothies, tea as Teavana, sandwiches, and ready to drink
products like Frappuccino, cold drinks and Starbucks Refreshers. The fresh foods will also be
offered which will include pastries, salads, oatmeal and grain bowls.
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Licensing: The licensing of the Starbucks will offer the customers the handicraft beverages and
the coffee which will meet the expectation of the customer stepping the store (Starbucks, 2018).
There are various factors which include the licensing are the seasonal promotions of the
products, menu, training, and support as well as the food and the beverages programme.
Premium membership will be taken for the business which in turn will benefit the organization
(Mok, et. al., 2013).
These are the areas which will be looked forward so that the business can achieve the growth as
well as the developments in the future.
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3.2) Develop a plan for the hospitality business which includes the operational
requirements of business in relation to the human resource allocation.
The plan for the hospitality business which can be considered by the Starbucks is as follows:
Ambiance, Interior, Exterior: The ambiance of the Starbucks means the design of the store
which will attract the customers to avail the services. It includes the interior as well as the
exterior designs. The designs of the stores will be maintained and constructed according to the
coffee heritages which in turn will help in reducing the environmental impacts (Cohen, et. al.,
2014). The designs will also include the artisans from the past of the urban markets as well as
embodies of the modern region at the entrance gate. It will also have the large table and the
lightening so that the customers visiting can explore the heritage of coffee.
Culture: The culture of the Starbucks provides the great environment for the workers who work
in the business so that they work with dignity as well as respect (Nida, 2016). The Starbucks is
well known for recycling its waste so the same culture will be carried forward in the expansion
so that the brand loyalty can be retained.
Brand: The Starbucks is itself the well known as well as the established brand (Malek, 2016). So
the products which will be offered to the public will be offered with the same brand loyalty so
that the customers can create the new experience of the products offered.
Functional Areas: There are various functional areas in which the Starbucks run those are
proper implementation of the supply chain management, human resource strategy, sales,
marketing and distribution, production and information technology strategy as well as the
finance strategy (Cohen, et. al., 2014).
Customer flow and Target Market: To provide the high quality of the services to its customers
the proper training will be provided to all the employees working. The quality of the service will
bring again the demand for the product which in turn will increase the customer flow. For the
services provided to the middle and the lower income groups will be targeted so that the
affordable prices can be charged to enhance the quality management.
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Customers with individual needs: All the customers come with their individual needs as well
as the demands. At the initial stage the products that are already persistent will be offered and
after that, according to the demand, the product line will be expanded (Nida, 2016).
Sustainability: To sustain in the competitive market the best way is to provide the unique or
somewhat the same services as the competitors do. This will help in future to increase the
customer flow and also help in increasing the revenue (Göğüş, et. al., 2013).
The next part which is to be considered is the operations that how the business will operate in the
market. So, the first part of the operation is related to the recruitment of the staff members as the
business cannot be handled by the single person (Meyer, 2017). For that 1 cashier, 3 waiters and
the 5-6 chefs will have to be hired. 1 senior manager will also be appointed who will deal with
all the conflicts related to the operations of the business. The appointment of all the workers will
be done according to the qualification such as the receptionist should have the bachelor’s degree
as well as the good communication skills while waiters should have completed their junior
college and should be aware of how to treat the clients (Lausanne, 2018). The chefs should have
the experience in the relevant field or have pursued the hotel management course. The senior
manager should have completed the management degree so as to handle the conflicts easily. The
human resource department will be set to provide the training to the clients joining the business
so that the risk related to the quality can be reduced. The promotion will be done of the existing
branches, newspapers, televisions and through the social media as these are most popular
techniques which are used by the people (Lausanne, 2018). For the first week, the products will
be offered at the discount prices. The pricing strategy penetration will be followed so as to
capture the market share by lowering the prices at the initial stage and once the customer flow is
increased then increasing the prices. As the Starbucks is itself known with its brand so the setting
the low prices for the initial stage will make the products available to the middle and the lower
age groups at the affordable prices as they can easily avail the services (Meyer, 2017).
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Conclusion
It can be concluded that the customer satisfaction is the basic aim of both the hospitality as well
as the travel and tourism sector. The people travel only for the 3 reasons those are leisure,
business or recreational purposes. The ways in which the hospitality and the travel and tourism
are interrelated is explained as with the absence of the one the other does not exist. The customer
satisfies his or her needs through the hospitality but that is succeeded by the tourism sector. For
setting the new business it is necessary to apply the correct promotion mix by choosing the
appropriate channel of distribution. The PFK hotel expert has worked so that the customer can be
satisfied by earning the appropriate amount of the profit. The Starbucks has used made the
infrastructure so attractive so that the customers can attract and enjoy the ambiance of the
business. So, the main objective of both the sector is increasing the revenue by optimally
utilizing the resources.
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