Hospitality Provision in Travel & Tourism

This report analyzes the interrelationship between the hospitality and travel & tourism sectors, highlighting the implications of their integration on branding, market control, and globalization. It further presents a rationale for developing a new hotel business in London, outlining a comprehensive plan for its operation, including location, transportation, funding, product and service offerings, licensing, and human resource management.

Hospitality Provision in
Travel & Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Interrelationship between hospitality and wider travel and tourism business...................1
TASK 2............................................................................................................................................5
2.1 Implications of integration to the hospitality industry.....................................................5
2.2 Impact of integration on hospitality business...................................................................7
TASK 3............................................................................................................................................9
3.1 Rationale for selected project clearly justifying decision linked to target market...........9
3.2 Development of plan for hospitality business................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality sector has achieved more significance in present scenario for handling the
public who travel from one place to another either for some entertainment or for business
purpose. In tourism sector, it also has its importance as it helps in attracting visitors from
overseas nations in country. Integration between both these sectors has created wide
opportunities for generating revenue and increasing number of revenues for business enterprise.
Various new products and services have been introduced by both these industries after
integration which has increased number of tourist (Medlik, 2012). Merger and acquisition of
hotels with tour operators have been increased in UK which has transformed business process
and created opportunities to attract international visitors. Present Article is based on analysis of
interrelationship between hospitality and wider travel and tourism business along with its
benefits. Further, implications of merger and acquisition of both industries are also discussed
with the evaluation of how this integration has influenced a business in hospitality sector. In
addition to this, rationale for selected project will be defined along with clear justification of
important decision associated with target market (Sigala, Christou and Gretzel, 2012). At last, a
plan has been created for development of hotel business which involves several aspects such as
its operations requirements, facilities, formation, structure, design and location along with ways
to make the business successful and attracting visitors.
TASK 1
P1 Interrelationship between hospitality and wider travel and tourism business.
Tourism sector and hospitality industry regulates their business operation with similar
objective of maximizing profitability by attracting more customers. Enterprises in hospitality
business such as Hotel, resorts, restaurants and other are considered as important service
providers to travel and tourism business companies. It scenario of leisure for business,
companies are continuously spending the high number considerable time at their hotel especially
when it is analysed to be a luxury status.
With the globalisation, trends of travelling to others countries have been increased due of
removal of visa barriers between countries. At present, tour operators and hospitality industry in
different countries are interconnected and dependent upon each other for getting customers.
Also, visiting to other countries has now become an attractive and continuous trend for people.
Business travel has been increased with increase in interrelationship with countries in these

sectors. According to different sources, travel and tourism business usually contributes 34%
towards GDP of UK economy (Mok, Sparks and Kadampully, 2013). Findings has also
provided information that more 50% of travel and tourism sector are interconnected with
hospitality business and achieved high growth in last five years.
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There are provisions have been made by government to increase tourism and hospitality
sector within UK and another countries because it is best source revenue for every country.
Ample profits have been generated by travel and hospitality business through successful
correlation of activities and services. There are various services in which they are likely to be
interconnected with each other such as:
Packaged holidays: Function of hospitality sector has been analysed highly essential for
companies which created holiday packages for visitors. They usually have their inclusion in
decision and creation of different holiday and business travel packages. They are usually
dependent upon prices which are paid in respect of these tours. When a visitor makes booking
for holidays, then they always expected accommodation of five star categories which provided
him satisfaction of spending its holidays in other countries (Smith and Puczkó, 2014). Visitors
are highly attracted towards service and luxurious environment which are provided by hotels.
Amenities which they have created for customers such as SPA, sports, theatre and restaurant are
reasons behind their attraction towards holiday packages. Tour operators like Thomas Cook and
TUI group also involves amenities design and developed by hotel companies in their holiday
packages.
Many hotels in countries have also initiated attractive offers to influence a lot of tourist because
they deliver their service at comparatively low prices for rooms where they can stay after
exploring various destinations for particular area (Hudson and Thal, 2013).
Consumer opting to get accommodation containing exclusive rooms, bed and breakfast is
usually rare scenario. Agents and representative of hospitality companies are continuously
checking up on their clients which are staying at hotel to ensure that they must enjoy the quality
which they have expected. They also ensure that services mentioned by hotels in packages must
be provided to customers as per requirements and quality (Murphy, 2013). Nominal charged
needs to be made for clients using extra services which create value among them towards
services.
Business travel: As per analysis, companies and other business usually select hotels for their
meetings and conferences which are capable of providing essential requirements and amenities
for working in effective manner. They usually search hotel which are having some large areas
and business centres, Wi-Fi or accessibility of internet, meeting rooms as well as different areas
of conducting business conferences and seminars along with 24 hours services. Business travel is
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continuously becoming affordable after integration of hospitality and travel companies due to
availability of budget airlines (Vanhove, 2017). Apart from this, there are some organisations
which usually consider keeping their reputation high and they require their employees to travel in
business class airlines. Due to this, Travel companies have also provided business class in the
different Airline which has been made for various companies who require working space.
Interconnection of hotel have also increased services for business travel and provided influence
on perception of companies having requirement of high class facilities. For example: Asian
countries like India, China and Malaysia are continuously becoming most popular destinations
for business travel and in accordance with global business enterprise throughout the world are
inclined towards setting of their companies units in attractive places (Scott and Orlikowski,
2012). Further, there is wide growth in industries at those places and therefore, some specific
business enterprises would desire to grab the chance for increasing their market share, revenues
and profitability.
Visitors’ attraction: This is something about which individuals communicate or which creates
major interest among traveller’s tourists as well as other individuals. There are different kinds if
attractions such as human made statues and structure, such as theme parks, wax museums,
museums and natural attraction like natural parks, resorts and sports areas etc. Hospitality
industry has also played important role in attracting various customers from various parts of the
world (Leung and et.al. 2013). An effective hospitality organisation leads to provide a super
relaxing and comfortable business environment which has been a requirement for every traveller.
Various factors of this such as luxury hotels, resorts and cottages are centre of attraction for
business class people and their family as they require spending their holidays at comfortable
place. They need to take experience of various luxurious products and services offered by hotels.
Further, this trends lead to increase in travellers and demand of tourism. It also encourages both
sectors to strongly connect and coordinate together for getting mutual benefits. Integration of
travel and tourism companies have intended to created number of opportunities for local
communities to develop new and attractive services for reflecting culture of countries. These
attractive amenities involve cultural programmes, trade fairs and sports events which attracts
number of international visitors such as researchers, Archaeologist and other researchers. These
people desire to know about different cultures and places that exist from many years in country.
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As per analysis, it is summarized that both tourism and hospitality are highly related with
functions and operations of each other. In the future, it has been forecasted that they will together
create high amount of revenues and profitability in their business.
TASK 2
2.1 Implications of integration to the hospitality industry.
Hospitality sector within enterprise has always turned out to grow as one fastest growing
industry in terms of development. Further, various important reasons have made the hospitality
business enterprise to conquer within global market which are continuously providing high class
services to their customers. Hospitality industry enterprise has made the visitors to under about
the travel and tourism sector so that high demand for products and service can be created in the
market (Evans, Stonehouse and Campbell, 2012). In this created so that provided must enquire
about these services from hospitality organisation providing same services and with returns to
deliver service on specific time through which concept of integration will occur within this
industry.
Further, implication of integration within hospitality industry can be analysed through following
business aspects such as:
Branding: Findings states that a brand name usually interconnects with the perception of
customers which has been developed due to experience he faces with that particular service of
the same brand of service. Branding is related to improvement recognition of hotels and its
services among visitors in other countries. Rather than other industries, hospitality industry tends
to achieve growth in sales due to its strong brand recognition in present competition. There are
various competitors have their presence in market which also provided substitutes to all
travellers at low cost (Swanson and Edgell 2013). Further, visitors from overseas nations usually
get attracted to some specific hotel or resorts which have highly effective service and brand
image in market. Similarly they also select transportation facilities which also have high
requirement in market. Many business class's people and families services tends to attract those
people who are highly attracted to those people who were highly attracted with people and
countries that needs to be maintained by management extra. Brand in hospitality sector aims to
creates customers loyalty through attraction of various important services that needs to be
created by management (Mohamad, Omar and Haron, 2012). Further, various important and
comfort deliver strategies have been created by hotel to increase customer’s satisfaction and
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retain them for long time. Integration of hotel and major tour operators has made influence on
perception of customers that their service will improve and they will introduce new things in
their holiday’s packages. For example: Cruse holidays have been considered as major example
of integration of hospitality and travel sector companies which attracted Chinese and other
overseas visitors in seaside tourist destination of UK.
Controlling over market: This integration of tourism and hospitality business has raised their
control in market also provided dominant position. Many tour operators in industry have made
the decision for purchasing hotels across the world that so that they will be able to enter in the
market of travel and tourism sector companies (Jayawardena and et.al. 2013). This essential
decision have allowed them to dominate their control on different important aspects such as
increasing prices rates according to their convenience that results in launching of various holiday
packages which are completely affordable and possess medium prices which can be paid by
customers resulting to rise in sale. Effective control in market tends to penetrate the market
Along with exciting offers and delivery of qualitative services in market. This decision always
provided understanding that of various aspects are important in travel and tourist industry which
tends to increase in customers base.
Globalisation: After successful expansion of organisation in its destination of starting its
business operations, markets which are located at overseas destination are also captured further.
It is also considered as the outcomes of the compilation of various important extensions that will
be evaluated from an internal and external direction. Hospitality and tourism have also affected
due to globalisation because it has provided them support in expansion of business in other
countries by introducing new service for customers (Williams, and Shaw, 2013). For example:
Thomas cook have also established its branches in other countries after globalisation through
development of interrelationship with overseas hospitality companies. It has also assisted in
severe decline barriers related to trade and across European Union. Countries highly gets
benefits NY keeping their products and services at low prices when there is occurrence of trade
within Euro zone. This has also provided various beneficial aspects towards the accommodation
and travelling service providers up to high extent.
Further, there are various potential benefits linked with integration of hospitality and travel
sector business. Some of them are mentioned below:
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 Reduction of operating cost and efforts on marketing of holiday packages in order to
minimise various expenses which is related to tourism.
 Further, it helps in identification of resisters that creates resistance within path of growth.
 Information within business enterprise can effectively gather through the path of growth.
 Increase in employment opportunities for people in local communities and development
of infrastructure (Dickinson and et.al. 2014).
 Removal of trade barriers between hospitality and travel industries in different countries.
 Information will be collected from among few time frames because of high presence of
advance technological software which has provided information regarding various
packages in order to deal with few minutes of assessment.
 Management of cost needs for controlling whole travelling activities that leads to creation
of various interests and recognition of customers towards it.
 This integration has led to effective management of operations which has provided
support to fulfil requirement of customers in specified time duration.
From this integration hospitality industry organisation have been able to increase their
growth and generated competitive edge over rivals. It has effectively managed its working in
order to provide the best experience to every client and making various important strategies to
attract them.
2.2 Impact of integration on hospitality business.
As per given scenario, various merger and acquisition have be taken place within
hospitality industry which has increased their growth and recognition among tourist. Merger
implies to collaboration of two different organisations in same industry for development of one
business enterprise in order to regulate business operations collectively. Various travel and
tourism sector company within organisation has interpreted results of recognition in market to
expand its services for recognition of management (Bharani and Butt, 2012). Integration of
business activities between Hospitality sector enterprise have reduce competition in market
which tends to raise cost of operations of business enterprise which is highly effective for
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managers to achieve growth in market. Main there is two kinds of integration which have been
take place within hospitality sector organisation which is mentioned below:
Horizontal Integration: When different business enterprise wants to expand their business in
existing market through differentiation products and services. They usually desire to raise their
sales by making proper diversification of business operations and products and making an
achievement through effective scale of economies, removal of competition and attaining high
profitability to new business clients.
Vertical Integration: In this, companies will acquire business operations of other company in
different industry to correlate business operations. Highly effective business operations tend to
raise impact on business operations that tends to raise major accomplishment of business
operations. Further, it has also made effective application of business enterprise for effective
vertical integration. Further, there are various important influences which have been provided by
this acquisition of hotel by tour operators such as:
 Economies of scale: After integration of services, important business reduction within
operating cost has also been occurred. Starwood hotel was highly effective hotel which
has achieved growth in hospitality industry. This integration with Marriott hotel has
allowed them to reduce their dependency on other accommodation service providers
because the most important and functional aspects will be taken care within effective
parameters of business enterprise (loan, 2016). When the tour operation have willed and
competencies to make investment in the hotels which are having more reputation, more
productivity that needs to be created by management. Through this integration
organisation have also been able to extend their present base of clients whereas with
help of integration business enterprise have possibility for entering within new markets
and also to attract as completely different basis of customers.
 Standardization: These methods of standardization have been very important which
requires creating a lot of efforts and time for travel and tourism industry that involves
involvement of various different important and huge barriers. Moreover, that process
effectively involves normalization but it is considered as highly unchallengeable for
effective business enterprise (Murphy, 2013). Rise integration of business enterprise has
affected business and provided them standardization through rise in quality of products
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and services in market. For example: in 2015, France's Accor hotels have also bought
Toronto based organisation of luxury fair amount , raffles and Swissotel brands for 2.7
million and acquisition by international hotel group over Kempton hotel and restaurant
over 430 million is also considered as move towards standardization of business
operations. This merger and acquisition has resulted an increase in quality of products
and services. Change in ownership will also tend to improve processes of acquiring
business operations.
 Quality: It is not possible always that integration of hotels and tour operators will lead to
rise in quality of services and business process which leads to completion of business
enterprise (Vanhove, 2017). Increase in quality of products and services will be done
through improvement and transformation of business process that intends to create
recognition of organization among customers. Highly effective business operations will
also enable business enterprise to create employment opportunities for people within
country. Improvement of quality in products will also be created through intervention of
government in business operations and reduction of tax burden to reduce cost of
operations.
TASK 3
3.1 Rationale for selected project clearly justifying decision linked to target market.
Rationale is analysed as process used to explain business information about the
development of new hotel in London. It is considered as important to develop a rationale for
every business project and it will justify the project as well as most of decisions which are based
on it. In this context, As junior consultant, plan has been made to develop an attractive hotel
business combined with restaurant. While planning some key aspects are required to be
considered which are as follows:
 Idea/concept: It implies to unique idea which is created for development of business. A
plan is here to open the business that will consists of opening an effective and combined
hotel with restaurant. Hotel will consists of luxurious accommodation and multi cuisine
to attract diversified people having different background and culture. This set will be at
tourist destination in the London, UK because demand for these things at tourist
destination is high in comparison with other location. Increase in international visitors to
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London have also raised opportunities for organization to attract more number of
customers by offering products of highly quality and premium products at competitive
prices so that it will not increase expenditure of visitors (Nunkoo, Gursoy. and
Ramkissoon, 2013). Further, tour competition in hospitality industry has created issues
for company to target and regulate business in its segment. To raise the business, focused
will be upon attracting middle class consumers who are not able to afford luxurious
services and would service them products at competitive low prices.
 Market research: It first steps before opening of new business and results of market
research will be critical in deciding success of business enterprise. Moreover, market
research in that case would also consists of making people fill questionnaires related to
this and interviews will take to analyse their previous experience in hotels and what they
needs to be new in this hotel. Products demand among customers will also be identified
which are continuously planning in order to make offer within market at affordable
prices. This also implies with finding out that if these selected clients will get satisfaction
and familiar with products and price at which they will afford them. Further, sample size
needs to be selected would be1000 visitors from overseas nations.
 Target market: As per above discussion, target market for new hotel and restaurant
business will middle class customers and families who are not able to buy costly holiday
packages (0Morrison, 2013Kropinova, Zaitseva and Moroz, 2015). Further, this target
segments will involves visitors that arrived from overseas nations, from all ages but
especially those people who will consider for affordable holidays packages. In terms of
geographical segmentation, UK leading tourism,
Selection and size of business: location of business would be tourist destination which highly
attracts more clients from different cultures and amenities will bring them towards organizations.
Size of business will be around 50 rooms will all effective high qualities facilities and services
such as AC accommodation, luxurious environment attractive infrastructure and business
(Chiappa, 2013 ). Further, proper areas for restaurant will be provided and it will offer Multi
cuisine dishes that attracts tourist from different countries.
 Funding: As small business, sources of getting resources for business are very less.
Financial resources are required to carry out business operation. Therefore, financial
institutions, bank loans and angle investors are used to get resources from external
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stakeholders. Personal capital is invested in development of hotel and restaurant along
with development of various products and services.
 Licensing: For establishment of business in hospitality sector, it essential to take license
by defining business plan and hiring of candidates at workplace. This will helps in
removing redundancies in business operations.
Figure 1structure of new business enterprise
3.2 Development of plan for hospitality business
The operational requirements for basic essential project of developing hospitality
business in UK required various sources which are mentioned below:
Location: In present scenario, new small business is located at tourist destination to raise its
branding among international visitors. Effective location will helps in effective supply chain
management, promotions and getting resources required to carry out operations.
Transportation: It is most important resources which are required to carry out client within
hotel. Highly effective business operations tend to raise salary of enterprise to attract number of
customers from highly essential backgrounds (Abubakar and Ilkan, 2016.). For example: cabs,
bus and Air flights are available customer which helps them to visit destinations.
Funding: These are basic requirement to start a project and without funds project of developing
business cannot be implemented. This has enhanced corporation of business activities to raise
customer relationship and managerial control over operations. For small business, there are
various sources to generate funds such as Bank loan, angel investor, personal capital and
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securities etc. In present scenario, personal capital and bank loan has been take to generate
revenue for development and regulation of business operations.
Product and services: It implies to good and amenities that customers will achieve from new
business. As per analysis, quality of products and service in restaurant and luxurious
accommodation service will provided to middle class customers at low prices so that person can
be attracted effectively. Various other facilities like Wi-Fi, attractive amenities like Spa will be
provided to clients as per requirements.
Licensing: In order to create business operations at attractive location, hospitality firms requires
t follow all guidelines should take licensing to continue business operations. In this, both hotel
and food products must be licensed to deal within parameters of laws and regulation made by
government.
Human resource: For establishment of business operator manager’s needs to ensure that there
would adequate number of employees to accomplish business enterprises effectively. Restaurant
will recruit staff on many positions like receptionist, chiefs, cleaners, waiters, manager etc.
Staffing will be considered as major part of presentation at customer side communication.
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CONCLUSION
From this report, it has been concluded that hospitality sector plays an important roles in
growth and development of economy. It is very complex to accomplish market research which
determined the operations are not properly connected with hotels. Reduction of operating cost
and efforts on marketing of holiday packages it helps to minimise various expenses which is
related to tourism. Highly effective business operations tend to raise salary of enterprise to attract
number of customers from highly essential backgrounds. Target market for new hotel and
restaurant business will middle class customers and families who are not able to buy costly
holiday packages.
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