The Impact of Tourism and Hospitality on UK's Economy

The given report explores the importance of tourism and hospitality in increasing the GDP rate of the United Kingdom. It discusses the interrelation among travel, tourism, and hospitality sectors, with a focus on integration's impact on hospitality businesses. The study highlights how traveling firms prioritize consumer needs and demands to retain customers and foster loyalty.

Hospitality Provision in Travel &
Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationships among hospitality and travel and tourism businesses..............................1
TASK 2............................................................................................................................................3
2.1 Implications of integration to hospitality industry................................................................3
2.2 Integration has impacted a hospitality business....................................................................5
TASK 3............................................................................................................................................7
3.1 Rationale for a selected project.............................................................................................7
3.2 Plan for hospitality business..................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................11

INTRODUCTION
In this present time period, tourism and hospitality both sector are booming rapidly.
Hospitality sector is main part of service industry. In hospitality includes accommodations and
hotels. On the other hand tourism consists airlines, travelling agencies, cruise and many others.
Hospitality industry has gained more significance in this modern era and also many businesses
which involves travel and tourism sector. It assess in handling visitors which travel from the one
place to another place (Barros, Butler and Correia, 2010). The main motive of travel and tourism
sector is to satisfying demands and requirement of tourists in an effective manner. This given
report is based on the PKF hotel experts which is global recognised leader on market in travel
and tourism, hotel consulting. Under given report discuss about interrelationship among travel &
tourism and hospitality sector. Implications of an integration to hospitality sector will be
discussed in given report. There is a discussion about plan for hospitality business consists
operational needs of business.
TASK 1
1.1 Interrelationships among hospitality and travel and tourism businesses
Interrelationships among hospitality and tourism businesses
Name- XYZ
Date- 25 April, 2018
Travel and tourism is defined as travel through an individual for leisure, recreational purposes
for particular time period. The people travel for many purposes like for an instance fun time,
education, business trips, leisure etc. Under this, travel industry has gained more significance to
give satisfaction level to consumers. Before selecting any destination, tourists conduct the
market research more than one travel destination in order to spend their holidays according to
their interest.
Because of enhancement in globalisation in present scenario, hospitality sector has more
emerged itself as developing country and also comparison to the other sectors. On the basis of
sources, tourism sector comprise more than the 33% GDP (Gross domestic product)to an
economy. In this modern era, hospitality industry is leading sector and helpful in enhancing
economy of country to attracting large number of people. It is essential that United Kingdom
government should take many initiatives related to hospitality sector as giving effective and
1

efficient services to target population and helpful in sustainability of country.
Role of Hospitality Sector in Tourism Industry
Hospitality sector plays a very necessary role in the industry of travel and tourism in
United Kingdom. The hospitality sector gives sustainability scope to the tourism industry. There
are large number of services which are provided through hospitality sector to attract large
number of people from various places and also assures that it can be assess in economic
development of country. In addition to this, there are some varieties of the services such as
accommodation services, food facilities, entertainment services and many others which assess
in attracting large number of people towards United Kingdom which advantages tourism
industry in country. People from various countries get affected to hospitality of country and also
satisfy their needs in an effective or better manner so that they can enjoy. With the help of this,
people can enjoy their better holidays. Business firms gives effective quality of services to
target consumers in context to attract people towards travel sector of United Kingdom. Services
are helpful in developing better perception between people which are travel for specific
purpose.
Scope and scale of hospitality sector
Gives employment opportunities- The travel sector is regarding satisfying consumers
needs and also develop better relations with them so that they can feel more comfortable. In
addition to this, hospitality industry develops large number of employment opportunities and it
is a main source of employment. Council of world travel and tourism has been stated that the
tourism sector supplies more than the 10% GDP and also provide employment more than the
260 million of people.
Enhancing tourists- IN this present time period, number of visitors increasing day by
day or year by year. In United Kingdom, there are large number of people come for visiting
purpose from different countries. In addition to this, because of decline in travelling expenses,
people are in large number start to travel.
Medical tourism- It is regarded as travelling from the one country to another for fulfil
cum taking all medical related treatments in another country. This kind of travelling consists
minimum cost which are related with different hospitals, care health clinics, restrooms and
many others.
Main services of hospitality sector
2

 The main objective of hospitality sector is to sell, distribute, serve and also to manage
the eatables, serving, distribution of the comestible and selling all kinds of stuffs.
 The main services which are provided through hospitality sector are clean rooms,
transportation services, accommodation facilities etc.
Global business environment is basically the external forces of the environment which affects
the overall functioning of the business. The external environment of business has different
factors to consider such as social, economical, political, regulatory, taxation, cultural, legal and
technological environment. This environment differs from country to country for a company. It
is very important for a company which is operating globally to consider all these factors to
function properly and grow its business.
Hospitality is a important factor to consider in a global business because good services and
efficient hospitality is a key factor to succeed in a business.
Hospitality ensures you gain loyal customers: Hospitality industry ensures that customers are
provided excellent services which helps business to gain loyal customers which helps in the
growth of the business.
Good hospitality will separate you from pack: There is always a room for a good product.
Thus, it is not only enough that you provide good customer service, if you want to stand out
from the pack you need to go above and beyond. You need to find out how your guests are
feeling and work on making connection with them.
MAIN PRIMARY HOSPITALITY PROVIDERS:
Lodging-accommodation: When business associates travel from one place to another for the
purpose of work, it is the responsibility of hospitality staff to provide them a place where they
can stay comfortably and provide them with lodging facilities.
Travel and tourism: Travel and tourism is a vast sector of hospitality which provides with the
facilities like providing the people with the proper ravelling facilities according to their budgets
and requirements such as cabs, trains, flights etc.
In United Kingdom, there are many hotels which are 2 star, 3 start, 4 star and 5 star. They star
ratings of UK hotel are manage as well as awarded through Four hotel rating boards and these
are Visit Wales, AA, Visit Scotland and Visit Britain. The 5 star rating hotel provides better
quality of services to consumers like for an instance clean rooms, accommodation, travelling
3

services and many other facilities. There is a classification according to star of hotel.
Interrelationship among Hospitality Travel and Tourism Sector
Tourism industry develops a better image in mind of consumers in all over the world. In
addition to this, consumers are most necessary part of travel and hospitality sector. Hospitality
is a necessary part of travel sector and under this travel firms based in consumers and fulfil
their needs in an effective manner. Visitors business organisation forms through arrival, hotels,
combining, restaurants, loading and many others. Provides to consumers for their better
satisfaction. They give better services to visitors in exchange of money. An interrelationship of
both sectors given below as above:
Communication- It is a procedure under which two or more than two people
communicate with each other in order to exchange their views, opinions and information. It
plays a necessary role in hospitality sector because whole market is based on good
communication. Under this, firm can communicate with consumers in a better manner and try to
determine their needs and demands. It is necessary that firm should communicate with visitors
in a better manner and try to build better relation with them. In United Kingdom, there are many
hotels which serve better quality of goods as well as services to visitors which come from
different countries. It is important that hotels conduct training to make improvement in skills
and abilities of employees so that they can deal with tourists. They believe in effective
communication skills and growth for which hotels conducts different orientation as well as
seminar programmes.
Travel and holiday packages- The travel and tourism industry gives large amount of the
packages for consumers under which various elements those are added to keep needs and
demands of consumers in mindset. Generally, travel sector prepare the different packages of
travelling so that every person can travel and impact of firm will be good in mind of consumers.
It will be helpful in increasing sales as well as productivity level of both sectors I.e hospitality
and tourism sector. In addition to this, travelling agencies gives special discounts as well as
offers to consumers which booked hotels and travel organisations on continuous basis for
specific purpose.
Some examples of food and beverage outlet are multi cuisine restaurant, bar, speciality
restaurant, room service, banquets etc.
Under this, hospitality sector works with the travel and tourism industry. People come from
4

different places look for hotels and many other facilities so the hospitality industry provides all
these kinds of facilities to visitors and fulfil their needs in an effective or better manner. The
hospitality sector arrange conference facilities to people, transportation services and many
events for them.
TASK 2
2.1 Implications of integration to hospitality industry
Integration is helpful to sector to work together through sharing their resources as well as
consumers. Hospitality is one of the fastest growing sector in context to development. In context
to hospitality sector, there is a combination of two different firms. Its main focus on reaching to
economies in order to minimising operating cost (Guttentag, 2015). It is helpful in saving money
for long time period. Because of integration, tourism and hospitality both sectors running its
business and provides many advantages as comparison to its strong competitors. Effective
integration system is needed to give better consumer services as well as better quality services to
consumers. From accepting integration system, firm get more importance and enhance its
reputation of firm. Integration is of two different types which are given below as above:
Vertical integration- It is a procedure under which merger is taken place in same chain. Most of
the business firms are working in same chain through merger with each other. Under this
Marriott International hotel purchases another firm or also suppliers in the distribution chain. It is
helpful in minimising operation cost and also enhancing profit in an effective as well as proper
manner. Generally, this kind of integration is specified as backwards, lateral and forward
integration. From integration barriers, many different business can not be entered at market place
and also helpful for other organisations to move on sustainability as well as success bound. With
the help of this kind of integration, firms can gained control of suppliers in competitive market.
Under this, in forward integration firms in same chain are merges to give efficient as well
as proper services to target consumers (Heung, Kucukusta and Song, 2010). In addition to this,
hotels can merge with tourism industry in order to attracting large number of consumers towards
hotels. Through this both business firms can sustain at market place for long period of time.
For an example- Marriott International hotel acquired the Delta Resorts & Hotels for
$135 million and it is beneficial for Marriott hotel for increasing its productivity.
5

Process under which suppliers are buy through an organisation in order to increase sales
in market and also utilise inputs of supplier to give efficient services to the ultimate consumers
which are present at market.
Lateral integration is other merger and in this both merger organisations gives same kind
of services. Under this, this is not essential that merger organisations connected with the each
other.
For an example- Marriott International hotel acquired the Delta Resorts & Hotels and
service providers of catering in order to provide food related facilities to consumers which are
coming in hotel for accommodation.
Horizontal integration- This type of integration is helpful in expand consumer base in a proper
manner. In this, firms applies horizontal integration to expand its consumer base from all
economies of scale and also try to increase profit level of firm in order to retain at market place
(Hudson and Thal, 2013). In United Kingdom, there are various hotels which are working in
same sector. Marriott International hotel and Delta Resorts & Hotels both are providing similar
line services to their target consumers. But after merging both of firms, they provide effective or
attractive services on the basis of needs and demands of consumers.
Marriott International hotel is responsible for control as well as monitor activities of
services. On the basis of market research, Marriott International hotel is entering in to the new
market segment because of vertical integration. On the other hand, this hotel is focusing on the
expansion of business. Horizontal integration is helpful in improving resources and also
capabilities.
2.2 Integration has impacted a hospitality business
An integration of any sector can be impacted through different problems. Integration is
helpful to know regarding market. Because of continuous as well as changing environment, it is
necessary to conduct integration in a proper and systematic manner in order to recognise
company and it is a most necessary aspect which are needed through managers of firm to run
business in an effective manner (Jaafar. and et. al., 2011). Integration is helpful in making
business successful and earning more profit. It is helpful in advancing current structure of firm.
Under this there is a need of integration caters in business.
Affects of integration
6

The main advantage of integration is the competitive benefits which is provides to
company. There are some impacts of an integration on business given below as above:
Standardization- It is complicated as well as big process as standardization for making
all components easy. Hospitality sector is standardization procedure and also provide more
advantages to visitors for travelling purposes. In context to this, for standardization application,
there is a need to business firm to more effective, hard working and also strict in for maintaining
equal level of all the branches.
Scale economy- Because of an integration, operation cost of hotel can be minimized at
significant level. Under this, it is stated that travelling agencies taken any hotel and from this
initial investment will be more and it will give many advantages. Marriott International provides
better quality of services to people.
Quality- It is a primary responsibility of business firm to provide effective quality of
service to visitors so that they can attracted towards firm and will be loyal. In addition to this,
Marriott International hotel adopts the better and advanced technology in business. Marriott
International hotel conduct research to know about the demands and perception of consumers so
that it can produce good and give services accordingly (Law and et.al., 2015). Some times,
Marriott International hotel faced issues related to quality services.
Integration has affected the functions of Marriott International hotel
Some of the integration affects in hospitality sector given below as above:
 In an integration of two different hotels like Marriott International hotel and any other,
there is a requirement to similar all costs which are provided through hotels to
consumers.
For an example- If Marriott International will charged the different prices as comparison
to other hotels then it will maintain reputation of Marriott International.
 When Marriott International hotel will integrate with another hotel then they can
influence over small size hotels. Under this, people are more attracted in order to getting
correct services at right place.
 Integration can be beneficial for economy of United Kingdom because from this
operating cost will be minimized and profit level can be increased (Medlik, 2012).
 With the help of an integration, costs as well as expenses will minimized and also
revenues and income level will maximized.
7

 Integration will develop monopoly situation in market which help in reducing
competitors.
 Integration of Marriott hotel is helpful in effectiveness and also efficiency of hotel
business.
 Distribution of incentives as well as rewards to staff members can be enhanced as
additional expenses in order to enhance their motivation.
The procedure of integration in hospitality industry may be accurate through establishing
effective policies as well as strategies and developing better relationship. It is necessary that
firms should utilise its resources in a optimum manner in order to enhancing performance level
of firm. Regarding this, there is a need to think more innovative ideas. Integration process sis
helpful in determines all issues concerned to business management from starting stage to
investing funds. In order to doing all activities in an effective manner, there is a requirement to
provide training and development to staff members. The main benefit of integration to reduce
cost and also maintaining changing structure of firm. In regards to this, advanced technology is
helpful to business firm to five relevant information and better knowledge which are needed
through managers (Sigala, Christou and Gretzel, 2012). If information and data will be properly
displayed at website of an organisation then from this consumers, shareholders, retailers and
distributors all can know about the firm and its effective condition.
TASK 3
3.1 Rationale for a selected project
Under this, there is a plan develop for starting new restaurant of fast food. The main
motive behind choosing this project is to assure that business firms can continue to move on
verge of the success and also compete with strong competitors which are present ink competitive
market. This project is to be integrate with hospitality industry so from this firms can expand
their business and attract the large number of consumers. Through this given project, PKF hotel
experts can able to know about its sustainability at market place and also target the large market.
Integration of two different kinds of hotel is helpful in enhancing sales as well as capture large
market share. In order to working in hospitality industry, it is essential to develop trust and
harmony between target consumers because this industry do not offer any type of products to
8

target consumers. With the help of trust can be develop between target customers in order to get
the top position at market place.
Plans are helpful in doing things in a systematic or effective manner and try to make
business firm more successful (Smith and Puczkó, 2015). It provides an assurance to increasing
growth of firm at the market place. Through effective plan, all future vulnerabilities can be
eliminated. It is essential that before integration, firm should be develop effective or proper plan
and should also collect accurate information or data related to different positive factors which are
attached with an integration. Through making plan company can perform its operations as well
as activities in a proper or systematic manner. In addition to this, after planning there is a better
or effective strategies are made through organisations so that firm can do all its activities in a
systematic manner and also compete with its strong competitors in an effective manner.
The rational behind few main business firms is to generate more profit and increasing
productivity of business in an effective manner.
Resultant Minimisation of independent businesses- Like previously, Marriott hotel
conduct its business independently but after some some it acquires Delta restaurant and has more
responsibility. But there is also benefit to Marriott to earn more profit.
Economies of scale- Through an integration, cost of Marriott hotel operations can
reduced and from this hotel will provide effective services to customers.
Increase in market share- As Marriott hotel acquire Delta company then it helps in
increasing market share as well as growth are of Marriott Marriott because the costumers of
Delta firm will purchase goods and use services of Marriott.
Standardisation and improved quality- The main focus of Marriott hotel is to increasing
quality of its goods to attract more consumers as well as increasing productivity.
3.2 Plan for hospitality business
Business plan is formal statement of the business objectives and it includes information
regarding team as well as organisation in order to attempting reach at decided goals. Under this,
there is a business plan created for business of restaurant which offers the fast food (Teng,
2011). In business plan there are some stages included which are given below as above:
Stage 1: Development
Idea- Plan which is going to be developed about business of hotel-cum-restaurant. It will
be situated at destination for visitors in United Kingdom since there is more demand for the
9

business of fast food restaurant for large number of visitors which are regularly travelling United
Kingdom destinations. So, there is a need to develop an effective plan so that restaurant can be
established in a proper manner. Main aim of this business is to concentrate middle- class visitors
and provide food products at reasonable cost.
Market Research- Under this, there is a need to conduct market research before opening
of new restaurant so that outcomes can be get in a better manner. In context to this, organisation
conduct effective market research and also prepare questionnaire to know about opinions and
ideas of people regarding that. It will be helpful in estimating expectation of consumers.
Target market- The target market of this restaurant are middle class people or visitors
which are visiting destination places of United Kingdom and also not afford high travelling
packages. It will develop positive impact on business.
Target location and business size-Target location of this restaurant is United Kingdom
where large number of visitors visit for travelling. These tourists are belong to middle class and
the size of business is medium and will provide all fast food facilities to consumers or visitors
on the basis of their tastes and preferences (Tribe, 2011).
Funding- In order to opening a new restaurant, there is a need of taking loans from bank
and personal investment. Without funding, activities will happen or conducted in proper manner.
Products and services- The products which are going to offered by new restaurants are all
kinds of fast food.
Licensing- For opening of new business, there is a requirement of license. With the help
of this firm can conduct its activities legally as well as ethically.
Stage 2: Design
It explains an outlook of firm. Many of the factors which impact on development of fast
food business, need to remove. Some of the design components given below as above:
Ambience- On the basis of current trends, there is a need to provide attractive as well as
decorated ambiance look ion context to amuse the decision so customers for accommodation.
There is a need of management to apply multicolour lights and very simple decorative for an
ambiance purpose.
Culture- It is an identification of fast food restaurants, management of new restaurant
requires to put all efforts for development of better culture (Vanhove, 2017). The representative
10

of fast food restaurants such as managers, waters etc. trained so that they can behave
professionally.
Exteriors and Interiors- Interior helps to convert consumers in to the continuous users
and exterior design help to transform tourists in to the consumers. Both designs of restaurant
should well furnished and attractive.
Functional Areas- The main focus of new restaurant to communicate with consumers.
Payment services as well as online booking play main part in business. It increase functionality
of the fast food restaurant.
Sustainability- IT is necessary for restaurant to provide its services to new and current
consumers to retain at market place.
Stage 3: Operation
Staffing by functional areas- IT is primary concern where firm will recruit right staff to
assess tourists to getting right services.
Specialist qualifications- Under this, firm recruit new staff through checking their
intelligence and qualification.
Cultural diversity and ways to deal with dispute- Tourists can come from different
counties for travelling purpose in United Kingdom. So, there is a need to engage staff members
to cooperative regarding assisting each person. Employees should try to neglect conflict because
it will develop negative affect on business.
Recruitment policies and procedures- On the basis of regulations ans policies of fats food
restaurant, it is a duty of HR department to maintain recruitment process.
Promotional activities- In this, new restaurant need to develop attractive promotional
policies so that people can know about that that restaurant and its food items (Guttentag, 2015).
Pricing- The cost of fast food items of new restaurant is normal so that every person can
afford it. On online order, this restaurant is going to free home delivery services.
CONCLUSION
It has been concluded from above given report that travel and hospitality both sector give
their contribution in making economy of United Kingdom country increased. Tourism and
hospitality both plays necessary role in increasing GDP rate of UK. In given report studied about
the interrelation among the travel and hospitality sector. Integration impacted hospitality
business also discussed in given report. The travelling firms take care needs and demands of
11

consumes so that they can retain at market place and also be loyal towards the firm for long
period of time. Under this studied regarding plan for hospitality business consist requirements of
operations of business in connect to allocation of the human resource.
12

REFERENCES
Books & Journals
Barros, C.P., Butler, R. and Correia, A., 2010. The length of stay of golf tourism: A survival
analysis. Tourism Management. 31(1). pp.13-21.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
Heung, V.C., Kucukusta, D. and Song, H., 2010. A conceptual model of medical tourism:
Implications for future research.Journal of Travel & Tourism Marketing. 27(3). pp.236-
251.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Jaafar, M. and et. al., 2011. Entrepreneurship in the tourism industry: Issues in developing
countries. International Journal of Hospitality Management. 30(4). pp.827-835.
Law, R. and et.al., 2015. Distribution channel in hospitality and tourism: Revisiting
disintermediation from the perspectives of hotels and travel agencies. International
Journal of Contemporary Hospitality Management. 27(3). pp.431-452.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Sigala, M., Christou, E. and Gretzel, U. eds., 2012. Social media in travel, tourism and
hospitality: Theory, practice and cases. Ashgate Publishing, Ltd..
Smith, M. and Puczkó, L., 2014. Health, tourism and hospitality: Spas, wellness and medical
travel. Routledge.
Teng, C.C., 2011. Commercial hospitality in restaurants and tourist accommodation: Perspectives
from international consumer experience in Scotland. International Journal of
Hospitality Management. 30(4). pp.866-874.
Tribe, J., 2011. The economics of recreation, leisure and tourism. Routledge.
Vanhove, N., 2017. The Economics of Tourism Destinations: Theory and Practice. Routledge.
Online
Definintion of Tourism (UNWTO Definition of Tourism) / What Is Tourism ?, 2018. [Online].
Available through: <http://www.tugberkugurlu.com/archive/definintion-of-tourism-
unwto-definition-of-tourism-what-is-tourism>./
13