Impact of Integration on Hospitality Business

This assignment discusses the implications of integration on hospitality business, covering topics such as cost integration, technological factors, globalisation, and lack of knowledge. It emphasizes the importance of understanding these aspects to effectively manage a hospitality business.

Hospitality Provision in
Travel & Tourism
Sector

Table of Contents

INTRODUCTION
Hospitality refers to the relationship among a guest & a host, where as guest receives the
services. The main aim of this hospitality sector is to fulfil the desires of consumers by providing
quality products and services. This sector has tremendous growth and all countries are emphasis
to promote this so that more people can visit the country. Travel and Tourism sector has
emphasis to fulfil the expectations of tourist for their better experience. For the different tasks,
there are different companies has been selected. There are following topics are covered in this
report such as: interrelationship among hospitality & analyse the implications of integration to
the hospitality industry. Apart from this it develops a plan in context to the hospitality industry
that provide help to fulfil the need of operations within the business entity.
TASK 1
1.1 Interrelationships between hospitality & wider travel and tourism businesses
The hospitality sector is one of the fast growing industry in the world and it emphasis to
provide the quality services in order to fulfil the expectations of consumers. The business is
based upon the culture of serving guests with warmth & care as a result guests feel safe &
comfortable. As hospitality and travel & tourism industry are linked together and it go hand in
hand. There are various services are offered by it such as: transportation, accommodation, food
& beverage recreation & leisure (Nunkoo and Ramkissoon, 2013). Tourism is the activity which
by the tourists where they pursue in travelling to destinations and enjoys the services like food &
beverage and accommodation. It is the supplier of the service for tourism and it focuses to
provide a safe & healthy environment to the consumers. Tourism denotes as a travel by a person
for recreational or business motive in-context to a particular time. It is divided into small
business sectors that is catered by hospitality industry. As an instance, if the individuals want to
take a holiday trip and for that purpose they have to travel by the aeroplane and this service
comes under the hospitality.
Persons have to stay in a hotel and hotels comes under the hospitality sector. The
individuals go for recreational activeness and the facilities provided by operator are comes under
hospitality. So it has been said that there is interrelation among the travel & tourism business and
hospitality (Mok and Kadampully, 2013). The role of hospitality in underpinning many types of
travel and tourism that is business travel, aviation, conferences & exhibitions, visitor attractions,
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theme parks. As the Junior Consultant of PKF hotels experts which has emphasis on hotel,
tourism and leisure consulting. It is a very famous company around the world and it is the
subsidiary of PKF international which is biggest association of audit and consulting corporation.
As PKF hotel experts, together with their sister organisation PKF tourism experts which is a
renowned player in the hospitality, tourism and leisure consulting. As it can be said that travel
and tourism is fully depend on the restaurants and hotels and which comes under hospitality
industry. It provide help the guests of travelling companies by providing food products, premises
for the rest, entertainment facilities etc. As PKF hotel experts has contract with the various
travel and tourist corporations which is helpful to maximize the sales as well as profits. As an
example, company can make contract with PKF tourism experts which suggest their consumers
to visit this hotel and take the services which are offered by it. It is helpful for both organisations
because sales of PKF hotels experts will increase when tourists visit the hotel for the purpose of
accommodation and food and beverage (Manhas and Tukamushaba, 2015).
As the PKF tourist expert will also get benefited when the consumers does not worry
about their stay and food because all things already arranged and tourist get best services,
products and facilities. As a result maximum number of persons will attract towards the
company. So it can be said that is interrelationships between hospitality and wider travel and
tourism businesses. There is a tremendous growth in this business because almost all group of
persons are fond of travelling and want to spend holidays with their family, friends and relatives.
There are various organisation which are dealing in this same business it of high growth and
profits but there are huge investment is required to carry out the business. There are various
tourist palace which are very famous and people shows their curiosity to visit so that they feel
joyful and feel relaxed. Some people visit for the business purpose and also for job purpose and
all of these required hospitality industry services and facilities. Without help of this industry, the
individuals can not get the facilities and services which are required and essential such as:
accommodation, food & beverage, entertainment etc (Razzaq and Prayag, 2016).
As the Junior Consultant of PKF hotels experts it is required for the company to deliver
the best services and to provide quality food products and beverage in order to satisfy the desires
of consumers. There are various facilities which are provided by it such as: pool facility, gym,
disco and for the entertainment of people there is musical show is also organised so that
maximum number of consumers can attract towards the corporation and it is helpful to maximize
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the profits as well as market share. There are complimentary services require to be provided so
that experience of tourist can be improve. As hospitality and travel and tourism businesses are
linked and both of them emphasis to consumer to satisfy the needs of people which is essential
for an organisation. To analyse the demand of people are necessary so that products can be
develops can be develop on the basis of it and services will be deliver according to it. As a result
business of PKF hotels experts will get success and grow. Where as travel and tourist businesses
are also focuses to satisfy the wants of consumers and it provide the travelling facility as per the
requirement of travellers. It involves comfortable seats, food and beverage services and fair rent
of tickets so that maximum number of person will engage with the organisation and also prefer in
future (Lam and McKercher, 2013). It is require to provide the services as per the expectations of
persons and try to fulfil the desires which is help the corporation to increase the market share as
well as revenue. As as result business goals can be accomplish which support the growth of
business.
TRAVEL AND TOURISM SECTOR: It is the part of hospitality industry and it
provides various travel services involves all types of transportation facilities such as: by air,
road and sea. For tourist there are various events are organised by the organisation so that
they can gain some knowledge. Company provides the transportation facilities to the
passengers which involves by air and by road etc. For accommodations services it arrange
hotels so that consumers can take rest and take food. For the enjoyment and learning
conferences and exhibitions are organised and emphasis to attract the visitors. Theme park
are related to a specific subject.
TASK 2
2.1Implications of integration to the hospitality industry
Integration is a kind of actions which occurs as two or more objects which have an
influence upon one another. It is helpful to create the relationship between two or more variables
and it help industry to work together by sharing its consumers & resources. There are two types
of integration can be seen in hospitality industry which involves: vertical & horizontal
integration. The implications has reflect in this sector because organisations are closer to increase
business by fulfilling the expectations of consumers (Kropinova and Moroz, 2015).
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To makes plans which are helpful to meet the objectives and use innovative tools &
technology in order to enhance the coordination. As IHG integrates with different hotels &
airlines companies. The architecture of organisation is customizes which collaborate existing
resources. It is beneficial for the expansion and growth as company can integrated with other
corporations in two distinct ways:
Illustration 1: (Source: Integration, 2019)
§
Vertical integration: It is that situation when company buys its suppliers or purchase the
distribution chain of other corporation. As an instance, IHG belongs to hospitality industry and it
has proper control over its distribution chain so that company train the workers from inside
despite hiring from outside. As the hotel emphasis to providing quality services by satisfy the
desires of consumers. As organisation can expand the business to other nations and it can attract
the consumers towards it. To maximize the profits and market share IHG can merge with Hotel
Magic life because both companies have good reputation and market image which help to
expand the market share as well as profits. With the integration the name of corporation will be
IHG Magic life (Heung and Kucukusta, 2013).
Horizontal integration: In this type of integration company integrate and make bigger
organisation but it is required that the products and services should similar. When IGH will
integrate with other company which is Edward House Hotel than there is a big corporation will
be develop. As a result business will expand as well as revenues will also maximize. It is
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beneficial for both corporation and the main reason of it is improve capacity & resources which
is helpful to increase the profits (Harrison, 2015).
2.2 Integration has affected a hospitality business
As integration is beneficial for the growth of business and help the company to get the
benefit of competitiveness. It emphasis on utilisation of resources, set competitive prices & the
technological factors. There are various things which describes the impact of integration on IGH
and it involves:
Cost integration: With the help of integration company can spend more funds for the
business and expands the investments so that quality products can be deliver to the consumers.
As an instance, IHG integrate with Magic Life that causes huge investment on business. So it has
been reflected that cost integration can influence the hospitality business (Chiappa, 2013).
Technology: As hospitality industry can be affected through technological factors. The
innovative technology will beneficial to maximize the efficiency as well as productivity. As IHG
can use this to contact with end users which is helpful to increase the communication as well as
coordination. So it can be said that technological integration can positively impact the business
of hospitality industry.
Globalisation: To know about the globalisation it important for the growth of business.
While expand the business to other nations, it is important to know about food habits, culture,
preferences and compliances. If IGH makes integration with other company and use concept of
globalisation to earn higher profits. In this situation if it does not analyse these factors than
business of hospitality can be affected reason being sales of company will not increase which
affects the profits.
Lack of knowledge: Due to the lack of knowledge in context to integration the company
can get affected. There should be proper knowledge about target market and the demand, likes
and income group can plays an important role and if it does not analysed properly than IGH can
not perform effectively as a result its sales and profits will reduce so it can be said that if due to
he lack of proper knowledge hospitality business can be affected (Ammirato and Felicetti,
2013).
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TASK 3
3.1 Covered in ppt
3.2 Covered in ppt
CONCLUSION
As from the above report, it has been concluded that there are various provisions which
are associated with travel and tourism sector. There is interrelation among hospitality & travel
and tourism business. The main motive of this hospitality industry is to satisfy the desirers of
consumers by providing quality services. To analyse the implications of integration are important
to the hospitality industry and if an organisation have lack of knowledge than integration can
affects the hospitality business.
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REFERENCES
Books and Journals
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