Hospitality Provision in Travel and Tourism Sector: Interrelationships, Integration, and Business Development

This report explores the intricate relationship between the hospitality industry and the broader travel and tourism sector. It delves into the interrelationships between these industries, highlighting key areas of overlap and mutual dependence. The report further examines the impact of integration within the hospitality industry, analyzing both horizontal and vertical integration strategies and their implications for business growth, economies of scale, and quality improvement. Finally, the report outlines a comprehensive plan for developing a hospitality business, encompassing market research, target market identification, design considerations, and operational strategies. This plan serves as a practical guide for aspiring entrepreneurs seeking to establish a successful hospitality venture.

HOSPITALITY PROVISION IN TRAVEL AND TOURISM SECTOR

Contents
INTRODUCTION................................................................................................................................2
TASK 1..............................................................................................................................................3
THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER TRAVEL AND TOURISM
BUSINESSES......................................................................................................................................3
INTERRELATIONSHIPS BETWEEN TRAVEL AND TOURISM AND HOSPITALITY.................................6
TASK 2..............................................................................................................................................8
UNDERSTAND THE IMPACT OF INTEGRATION WITHIN THE HOSPITALITY INDUSTRY....................8
TASK 3............................................................................................................................................12
DEVELOPMENT OF PLAN FOR THE HOSPITALITY BUSINESS INCLUDING BASIC STUDY.................12
STAGE 1 – DEVELOPMENT.............................................................................................................12
STAGE 2 – DESIGN..........................................................................................................................14
STAGE 3 – OPERATION...................................................................................................................15
CONCLUSION.................................................................................................................................17
REFERENCES...................................................................................................................................18
1

INTRODUCTION
A huge income is contributed by the hospitality industry in the UK economy. The hospitality
industry provides event catering actions, prepared food shops, camp out and fun activities,
brews and food, restaurants, home catering facilities and accommodation etc. The discussion
about several services regarding hospitality organization, the services related to the tourism
and travel organization and the co-relation in between the services offered by these two
organizations have been made through this assignment. Some mutual services to both these
sectors are like aviation, business travel, visitor magnetism, theme park and garden, exhibitions
and conferences etc. The project covers different type of combinations in the hospitality
organization, some great achievements and fusions and the influence of these achievements
and fusions on big hospitality organizations functioning, for example, Marriot International. At
last, the foundation of an organization at the choosing time of a project and the entire structure
of the required operations related to a company have been discussed.
2

TASK 1
THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND
WIDER TRAVEL AND TOURISM BUSINESSES
A large number of international, national and domestic organizations are willing to make an
investment in the hospitality field that results in exponential growth during these years by the
hospitality industry. According to the British hospitality association report, there are 127000
industries under hospitality organizations in the UK and is offering employment to more than
3.2 million persons in the country.
While visiting places far from home, the tourism is identified as the set of activities, services,
and organizations that assists in providing efficient travel knowledge concerning the
transportation, beverages, retail shops, and accommodation, food, entertainment, and warmth
services to the group or a person (Mok, et al. 2013). There are particular businesses such as
restaurants, hotels, pubs etc. which helps in experiencing the tourism at the sites. Basically, the
hospitality business is the big industrial group that offers the necessary services and
conveniences to the consumers. In the UK, there is a large segment of hospitality business
which offers financial increment to its country.
The hospitality business acquires a well-built relationship with the tourism and travel industries.
Different types of factors can easily illustrate the interconnectivity of the tourism and travel and
hospitality businesses (Nickson, 2013). Primarily, it is essential to comprehend the work of
hospitality business which has been dependent on various fundamentals. The elements can be
described as:
Hotels
According to the British hospitality association, approx. 22 thousand hotels are in service in the
UK (Everett and Slocum, 2013). Based on the facilities and services provided to its customers by
these hotels of UK, the rating from 1 to 5 is given as a feedback by the customers. The hotels
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which are been rated from 1 to 2 stars are economic and having good services related to the
accommodation and food. The hotels, having the rating from 3 to 4 stars are premium hotels
whose facilities are advanced and modern. The hotels get prices alongside with their value-
added facilities.
Restaurants
According to the information provided by British Hospitality Association (BHA) that in the UK,
there are approx. 16 thousand restaurants that offer breakfast. Additionally, there are various
coffee shops, fast food café and dining halls. It is acknowledged that the vacation in those
restaurants is compulsory. Restaurants provide a different kind of foods like Italian, Chinese,
Indian, etc. under reasonable prices (Swarbrooke and Horner, 2012). Apart from food, the
customers are provided with the facilities of leisure and music. The coffee shops are also found
in each corner of the city and very known among the persons.
Nightclubs, pubs and bars
The recognition of nightclubs, pubs and bars is greatly found among the adults and youths.
These places have several types of alcoholic brews for its consumers together with soft drinks
and mineral water (Mok, et al. 2013). There is the range of bars such as karaoke bars, comedy
bars, blue bars, etc. that all are for different purposes. For comparisons, the nightclub is
another type of bar and pub where electronic music and dance is conducted. The nightclub is
having a particular dance floor with a good arrangement of sitting which is accessible to many
types of persons.
Contract foods facility providers
This is an arrangement between the customer and foodstuff facility providers. The food facility
providers deliver foodstuff for many events like marriages, birthday parties, office parties, close
functions etc. Along with this, some food facility providers also offer facilities such as place
decoration. Those people are known as caterers and they make food in their kitchen and
convey it by mobile catering services.
4

Membership clubs
The clubs are associated to the recreation activities, parties, sports, spa, etc. the persons having
the membership are benefited by various services such as Jacuzzi, swimming gym, spa, sports
like snooker, tennis, badminton, etc.
The composition of tourism field
Tour operating organisations such as Trailfinders and Thomas cook provide the services related
to the tourism. These organizations combine several services like food, sight-seeing, transport
and accommodation into one big package.
Additionally, a considerable role is played by the tourism and travel for the hospitality business.
The main characteristics of tourism and travel are:
Conferences and events
The event manager efficiently organizes conventions, exhibitions, meetings and incentive
tourism for the consumers. They are expert in handling and managing the requirements and
necessities of the consumers appropriately and provide the essential services on time (Tsiotsou
and Ratten, 2010).
Visitor attractions
The visitors’ magnetism consists of several fundamentals like ancient monuments, splendid
homes, activity centres and theme parks. The destination sites are developed for building the
attraction in visitors and tourists’ side.
Travel services
Travel services include tour operators, ticket agencies, retail travel facilities, and bureau de
change. The retail travel representatives provide various facilities to the people like that they
are the providers of the travel facilities (Joskow, 2012). Those broker work amid the tour
operators and the consumers. The tour operator prints brochures so as to advertise their
vacation packages and book the consumer's ticket under their tourism packages. Moreover,
Bureau de change services is provided to the tourists for exchanging their currency.
5

Accommodation facilities
This is also one of the main necessities of tourism and travel segments ( Moutinho and Vargas-
Sanchez, 2018). These are named as apartments, guesthouses, hotels, holiday centres, caravan
parks, villas and motels for the visitors and tourists.
Passenger transports
Various passenger facilities are given to the consumer like railway, water, air, and auto services.
At the time to visit the destination end, the consumers could move from one location to the
other for instances water transport by the ferry, cruises and boat while the auto transport by
coaches and buses (Leedy, et al. 2013).
INTERRELATIONSHIPS BETWEEN TRAVEL AND TOURISM
AND HOSPITALITY
Several services regarding hospitality organisation and tourism and travel overlap. Although,
hospitality organisation assists the travel organization by its services such as aviation, travel and
conferences (Bresnahan and Levin, 2012). This can be analysed by comprehending the worth of
hospitality in different sectors of the tourism and travel. The main observed interrelationship
areas are:
Business travel
This is one of the common characteristics of tourism and travel business and hospitality
(Hudson and Thal, 2013). An individual moves from one location to another because of business
viewpoint in which high-quality services for accommodation and travel is provided.
Aviation
This is also rudimentary of the tourism and travel sector. Some specific tour operators such as
Thomas and TUI give their airlines to consumers for the efficient travelling experience ( Leung,
et al. 2013). This facility of aviation is offered in so many countries and the consumers could
entertain the hospitality with their rationale.
6

Exhibitions and conferences
The exhibitions and conferences are planned by the event organizer along with the travel
operator so as to provide excellent services to the consumers (Tsai and Chen, 2011). Most of
the time, the conferences are held in well-known hotels where the services such as
presentation necessity, accommodation, and sitting array are offered along with the food
services.
Visitor attractions
Various visitors’ attractions are present for the tourists in the city where sight views can be
enjoyed together with the restaurant services. The visitor attraction consists of the tourist
points along with various activities.
Theme parks
The theme parks offer various hospitality facilities to the tourism and travel segments at a big
scale. There are several theme parks in the UK like Berkshire, Staffordshire, Legoland, Alton
Towers, Thorpe Garden, Chessington world of Zoo and Adventures.
7

TASK 2
UNDERSTAND THE IMPACT OF INTEGRATION WITHIN THE
HOSPITALITY INDUSTRY
INTRODUCTION
There is a big role of integration in the hospitality business so that the micro businesses have a
chance of enlarging its business at the great level. The target of growing can be achieved by an
enlargement approach named as integration. By integration, big organizations adopt small
organizations so as to enlarge their organization (Robinson et.al, 2011). This present
administrative report explains two kinds of integrations which are vertical integration and
horizontal integration. This report would also describe the influence of the integration of the
organization which involves acquiring scale economies, quality improvement and product
standardisation. As the hospitality business is made by various big businesses that are offering
the excellent facilities to the consumers.
Body
Integration is an official connection among organizations with another and has derived from a
financial idea (Hoffman and Casnocha, 2013). The chain of distribution also has a big role in this
hospitality business, as there are three stages of the chain of distribution in this hospitality
business which are i. principal, ii. A wholesale division and iii. Retail division. In the hospitality
industry, the distribution chain assists in the efficient offering of the needed services and
products to the consumers by the hospitality businesses such as Marriot International and
Hilton Hotel, etc. The two main integrations are horizontal integration and vertical integration
which consists a huge impact on the hospitality business are discussed as:
Horizontal Integration
This integration takes place amid two hospitality operators join through by acquisition and
merger. Horizontal integration assists in escalating the environmental spread in form of area
8

and diversification. This type of integration is selected by tour operators for higher growth and
improvement in the business.
One of the examples of horizontal integration can be seen in Hilton Hotels. The expansion of
the business of Hilton hotel in the UK was made by the acquit ion of the challenger hotel chain
named as Stakes. At the global stage, the expansion of business has been made by buying
Scandinavian hotel chain named as Scandic.
The Horizontal integration enlarges the marketplace share of the company and influences the
financial system scale due to the prices decrease at the time of merging.
Vertical Integration
In this integration, two companies extended a powerful bond at the different stages in the
manufacturing process or distribution chain such a hotel starting their individual travel
operating company (Jolliffe, 2010). Vertical integration has two types such as forward
integration and backward integration. In forward vertical integration, the hospitality business
buys the firms who are at the retail stage for instances the brewery company buy the pub. On
the other hand, in backward vertical integration, the tourism operator bought a company that
add their packages such as travel operator obtaining restaurants, nightclubs, hotels, event
administrative company etc.
One of the examples of the vertical integrations can be seen in Virgin Groups. They are popular
among travel airlines so that they established Virgin Trains for their consumers (Mohapatra,
2013). The main target of the company is to achieve considerable consumers from both the
sectors efficiently.
ALLEGATION OF INTEGRATION TO THE HOSPITALITY BUSINESS
The following areas enable to understand the allegation of integration to the hospitality
business:
 The significance of branding and costing policies
9

Both costing and pricing are useful fundamentals of the hospitality business. The
marketplace is segmented into several parts like hotels budget, luxury hotels, resorts,
upper-scale, mid-scale, and low-scale hotels (Kusluvan, et al. 2010). For example, an
Intercontinental group of a hotel has been establishing the novel brand for the People's
Republic of China's marketplace. Additionally, the industry could utilize vertical
hospitality integration for controlling the rates.
 Joining associations by independent establishments to compete with the bigger
organization
The several independent enterprises are merged in bigger organizations in an attempt
to connect with them so that they can race with other big organisation. For example,
Delta resorts and hotels are sold to Marriot Hotel, Kimpton restaurants and hotels are
sold to the group of intercontinental hotel, and Starwood resorts and hotels are sold to
Marriot International (Schuckert, et al. 2015).
 Amplified globalization of the business
The industrial globalization has been amplified because of integration (Atalay, et al.
2014). With the assistance of horizontal integration, the large businesses are
penetrating the new marketplace efficiently. For example, in the UK, Hilton hotel has
been enlarging their industry.
 Exploitation and control of the market
The integration helps large businesses that have considerable management and control
on the market. For example, the breweries are maintaining and controlling the bars and
pubs which consequences 80% breweries who are managing the market.
IMPACT OF INTEGRATION ON THE HOSPITALITY INDUSTRY
The integration impact on the hospitality business can be realized by several fundamentals like:
 A decrement in independent industries
10

For offering excellent services to the tourists, large hotel groups have been obtaining
small hotel groups. The hospitality facilities offered by Marriot International are of
higher excellence which later manipulates the big number of visitors.
 Economies of scale
The wealth of scale can be obtained by integration because the huge companies get
small companies which further lessen the deliverance of similar services and products in
the organization.
 Improved quality
The service and product quality in the hospitality business has been increased by the
acquisitions and mergers as big groups of the hotel offer a vast opportunity for
employment. For example, Marriot International has established a program of training
for their workers so as to help them in working efficiently.
 Standardization
The products and services are standardized because of the acquisitions and mergers. It
assists in offering efficient facilities to the consumer and proper administration.
Conclusion
It has been shown that the integration in the hospitality business has given several profits to
the industry. Additionally, many facilities are offered to the consumers in a cost-efficient way. In
the end, the organization enhancement and enlargement opportunities are also improved.
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TASK 3
DEVELOPMENT OF PLAN FOR THE HOSPITALITY BUSINESS
INCLUDING BASIC STUDY
STAGE 1 – DEVELOPMENT
Concept
The most comfortable place is Cafe for the consumers to have some leisure time by ordering
their favourite drinks with some light snacks. The main target of this industry is to maintain a
relaxation place for the consumers with the intention that they could spend their quality hours
with their colleagues and friends.
The organisational idea is to establish a cafe nearby a football complex which is having one mini
bar too along with the all needed luxuries and ambient surroundings for the clients.
Manchester has chosen as the most suitable place for cafe here as the high-middle class
community is big and higher number of tourists are there in the city due to football
tournaments (Swanson and Edgell Sr, 2013). Different type of services and products would be
delivered by the cafe to its consumers with proper offers and discounts for getting popularity
amid the consumers. It is a business enterprise which would enlarge their add-ons with respect
to time.
The aim of this industry is to create a serene ambience for the consumers, therefore; they can
get pleasure from their ordered food and beverages meanwhile their leisure time.
Market research
It is the main fundamental of the hospitality business which permits the proprietor to settle a
flourishing outlet in the marketplace and achieve the necessary organisational targets
efficiently (Leung, et al. 2013). The reason behind the market study is that it assists in
performing several operations in order to conduct business fruitfully.
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5 forces by Porter
 Power of buyer
It is very essential to comprehend the financial state of the area as well as the capability
of its customers. The main consumers in the Manchester are mostly tourists due to its
football attractiveness who will prefer the product that would be hygienic in nature.
 Power of suppliers
As the interest of people is increasing in tourism, their demand is also increasing of
having quality resources which are the foundation of a business that further supports
the supply administration. The supply administration consists of supplies of unprocessed
stuff for the food products and other possessions for drink and beverages.
 Risk of substitutes
Manchester is a popular tourist hub where visitors from different countries and culture
come to watch the match and enjoy their free time with considerable exploration. These
are the best chances for several ventures to establish their company so as to engage the
marketplace share.
 The threat of novel entry
There are many possibilities for the new ventures in the Manchester marketplace as
their organisation could achieve enormous development and growth. Their performance
will later affect the business of well-known and established organisation at the vast
level.
 Rivalry
The numbers of companies that are providing the same kind of services and products to
their consumers develop the rivalry in the marketplace. The chances are high of the
rivalry in the market of Manchester that will result in various business implications.
Target market
Selecting the appropriate and suitable suppliers as per their requirements with the help of
market segmentation process is an essential approach to the development of the business.
Several types of requirements are there that should be pleased by the business for getting
13

success in the marketplace. For considerable growth, the different kind of opportunities from
the market should be hired. The chosen location in Manchester for the industry and the target
consumers are tourists and high-middle class persons.
Scale
It is obligatory to decide the scale for accomplishing the needs of an organisation efficiently and
the scale of the organisation will be in the medium range. Additionally, various tactics should be
integrated so as to achieve the objectives of businesses.
Funding
The business funding should be like in 50:50 ratio and it means 50% is my investment and rest
50% is from the bank as a loan. All the possible several expenses should be managed efficiently.
Services and products
The services and products will be provided to the consumers of high-middle class so that expert
workforces are needed together with the release of the ranges of goods. The small relieving
place would be provided to the visitors so as to achieve some rest together with a dance for
getting a refresh.
STAGE 2 – DESIGN
The attractive designing should also be considered to manipulate the customers. The
surroundings or an ambient formation is required in manipulating the tourists as well as local
persons towards the Cafe. It should be diversified, so to help every customer efficiently.
The cafe should provide high-quality food and manage the powerful brand image. By providing
different culture and region food to its consumers, the company can expand its popularity.
Additionally, the needed observations should be made to facilitate by handling the weaknesses.
The interior or exterior should be pleasing and content so that the consumers could enjoy
quality hours (Wilson, et al. 2012). It is very much required to build approaches and performing
them properly for fast growth.
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The outline and design of the functional areas regarding the cafe are also very important so as
to provide the necessary facilities (Peeters and Dubois, 2010). The cleanness should be
maintained, the kitchen requires to be appropriately neat and clean and the sitting place of
consumers should also be hygienic by nature.
The eye-catching interior forces the number of customers to at least visit the place for once.
Because of the increment in the number of middle-high class people, their requirements for
better facilities and services are also increasing. The fulfilment of the requirement of target
market helps in business growth.
The products should be aligned together with the target market in order to make an enormous
profit. The target market consists the needed consumers who would be assisting the cafe in
attaining their specific goals. The consumers having single needs should be given priority,
because generally they are upper-class consumers and making them content helps in
developing effectiveness in the marketplace.
STAGE 3 – OPERATION
The professional and expert workforce is one of the required fundamentals of the service
business. The staff should be helping for every small operation of the cafe in a great manner. It
is required to describe the responsibilities and role of the workers and assigned them the
appropriate work as per their expertise. With the help of experience Human Resource
Department, the staffing should be conducted. All the essential formalities should be made by
Human Resource Department for selecting a suitable team. Printing media, internet, circulars
all should be updated and are helpful for HMR team in taking hard decisions.
Manchester is a tourist place and several visitors used to come here, such that the general need
is the good command in understanding and speaking English, the employees should also have a
good proficiency. The employees should contain a management degree of hospitality or
training certificate so that they work with greater efficiency and understand the fundamental
needs effectively. If an employee is selected without any related qualifications, in that case, the
essential training should be given. The effective workforce maintains the charm, motivation and
15

potential which further works in developing positive ambience. Time to time assessment in
every area is necessary with the attention of overcoming the faults and provide the quality
services and products.
It is required to chase the recruitment strategies together with different legislation so as to
keep the satisfactory atmosphere at the cafe. Apart from this, the workers should pursue the
work strategies so as to work appropriately. Sometimes, employee leaves his job or work
before completing his tenure which affects the business at the great level and also on their
financial system. It is essential to perform strong recruitment process for achieving probable
workforce. Later, the campaign and advertising events should be held for developing awareness
of brand of the cafe in the marketplace.
Moreover, the costing procedure should also be held appropriately by assuming all the factors.
The costs of services and products should be managed properly by evaluating the consumer
requirements so the consumers have the money value and the necessary quality services and
products at reasonable cost. The necessary fundamentals that assist the cafe in achieving
success in the business are providing quality food together with the manipulating surroundings.
Additionally, the business actions should comply together with the consumer's culture,
therefore they visit the cafe regularly. The flaws and weakness regarding the cafe would be
overcome by performing proper approaches such that the business operations will be smooth.
16

CONCLUSION
It has been analysed from the above-mentioned report that the integration has a great effect
on the hospitality business. This report assists in comprehending the interrelationship amid the
tourism and travel field and hospitality business. There are various services which are provided
to the consumers by this efficient interrelationship. Moreover, the worth of integration has
been assessed and evaluated for the development of the business and wine in the market. The
organisational processes in an industry such as hospitality industry have been improved which
helps in understanding different growth areas that assist in introducing a successful business.
The information and knowledge which have been attained from this report will be exploited
later in needed areas.
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