Exploring Operations and Production Management in Hospitality

The assignment is to prepare a report on the hospitality industry, focusing on restaurant design and management. The report should cover topics such as consumer demand, environmental sustainability, occupational segregation by gender, social media data in operations management, risk factors affecting firm performance, guest satisfaction, and competitive position in the industry. The report should also include references from books and journals, online resources, and a graphical illustration of an organisational chart.

Hospitality Provision in Travel
& Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship between hospitality as well as wider travel and tourism sector...............1
TASK 2............................................................................................................................................4
2.1 Analysing the implication of integration to hospitality industry..........................................4
2.2 Identifying the way integration has affected hospitality business........................................5
TASK 3............................................................................................................................................7
3.1 Developing the rationale for selected project........................................................................7
3.2 Developing the business plan For hospitality sector............................................................8
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Hospitality sector is considered as important part of service industry. It is The study is
based on hospitality sector which is growing at very rapid rate. Hospitality industry is
contributing a lot towards economic development as well as generation of employment in nation.
Hotel sector provides various facilities to travellers such as food, accommodation, transportation
etc. An organisation, operating in travel and tourism industry has to form joined venture with
hotel companies that has enabled both the sector to provide additional facilities to their client.
Partnership strategy has also helped both sectors in fostering growth (The positive potential of
the tourism industry, 2018). In the development of hospitality sector, tourism plays crucial role.
However, travel and tourism and hospitality sector integrates to enable successful management
for their business. . Partnership or integration between two sectors is helping the entities in
gaining competitive advantage.
The purpose of report is to develop an understanding about role of hospitality sector in
travel and tourism industry. It will also focus on analysing implications of integration with
hospitality industry. Study also emphasizes on determining the effect of integration on
hospitality sector in context of hotel.
TASK 1
1.1 Interrelationship between hospitality and wider travel and tourism sector
Being a consultant of PKF hotel expert, it can be said that there is a strong
interrelationship between hospitality and travel and tourism sector.
In tertiary industry, hospitality sector covers the large market for rendering hotel
services. In this sector products are not produced to be consumed, services are rendered which
are availed. Hospitality industry includes various services such as restaurants, event
management, bars, accommodation, etc. In this era of advancement in technology, everyone
prefers adventures as they search for technology all around the world. That's why tourism has
adopted this feature as the source of income. So in this way tourism and travel are related to
hospitality sector as it increases the customer base from all around the world.
Tourism is done for amusement, entertainment and leisure or corporate meetings
conducted for a particular purpose. Tourism or travel are interrelated to hospitality industry. For
example- if a family is planning a holiday to specific place but are aware about the travel
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discounts, tourist location and accommodation in some other country. In this case the family
will seek for the travel and tourism firm who can assist the individuals in overall trip which
comprise, hotels, transportation and entertainment. Thus, in accordance with this situation it
can be said that it possible only with the successful integration of travel and hotel services.
In present scenario, hospitality industry is considered as an important sector which is
contributing towards economic development as well as is the major generator of employment in
nation. As this industry is contributing a lot towards economic development of nation and is
helping other travel companies for attracting more customers. There is strong relationship
between hospitality and travel and tourism business. Travellers are considered to be a most
important stakeholders of both the sectors. Therefore, both travel companies and Hotels such as
Hotel are focused on fulfilling customer needs and meeting their expectations . Travel and
tourism industry plays very significant role in growth of hospitality sector. Role of hotels is to
provide various facilities to tourist such as accommodation, food, etc.
Hospitality plays an important role for successful management of tourism sector,
Function of hospitality sector in travel and tourism industry is to provide safe as well as
comfortable environment. Every custoemr seeks for comfort after a heactic travelling and the
holspatilyservcies which are provide by that hotel boost up their comfort and mkes them
satisifed after getting an effective relaxation. In addition to this, hospitality industry has vital
role to play in event planning and organising as well as management of functions. Nowadays,
considering the demands of tourist and changes in preference, organisation in hospitality
industry such as hotel is providing the entertainment facilities such as bar, pubs etc. The
additional facilities provided by hospitality sector has assisted tourism companies in attracting
more number of customers. It has also assisted travel enterprise in influencing guest to stay for
long at specific destination and make frequent visit to place. Customers or people from different
countries get influenced to tourism of the country and their hospitality services of the country
and when they get satisfactory results. Purpose of hospitality sector is to provide memorable
experiences to visitors and make them feel comfortable. Hotel and travel sectors both are
interlinked with each other. In addition to this the hotel companies also provides catering
facilities to travel enterprise. hotel business entity also provides budgetary services to customers
in order to encourage them to visit again.
Travel and hospitality sector has strong connection in context of services in the absence
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of one company another business will not be able to fulfil the demand of the customers. Travel
organisation are offering attractive packages to customers. Hotel sector is providing food,
accommodation services as well as entertainment facility to tourist. Functions of hospitality
sector is to promote products or services offered by travel industry. Overall it can be stated that
tourism industry comprised of small sectors from hospitality industry. There is also a direct
relationship between tourism and hospitality industry in context of economic growth,
development of business etc.
In context Hotel expert PKF firm, it has been determined that support from travel and
tourism companies in making business plans and strategies for attracting more visitors. In
addition to this, hotel helps travel companies in organising all operations as well as helps for
making plan for conducting the recreational activities for customers in order to provide tourist
with memorable experience. Hotel also act as advisor to the travel and tourism organisation.
Hospitality can be understood as the act of being emphatic or hospitable to others. The
focus of hotels and restaurant, is to make their customer comfortable in premises and with
services. For this, it is necessary of the hotel staff to assist guest with particular service and
making facilities accessible. Travel and tourism can inlcude those activitities such as visiting a
particular place for recreation and amusement. But tours and travel purpose can't be fulfilled
without hospitality services like hotel & restaurants and hospitality sector can't be flourished.
Thus, it can be said that both the sectors are interdependent on each other (Campos-Soria,
Marchante-Mera and Ropero-García, 2011). So, employees in these areas like servants, waiters
and all other workers involved are properly trained. Customer are ready to pay for services
where they are treated with respect and dignity and gets all premium facilities. Various tour and
travels sites are linked with the hotels, which helps in expansion of both the industry. Various
hospitable and other facilities are being provided in hospitality sector, which are as follows:
 Various sites are operated by tours and travels agency or companies which conducts
operations regarding tours activities.
 It provides the reservation for tickets in advance for convenience for getting seats in
railways, Airways and in roadways or sleeper coaches.
 In this sector, seasonal and holidays travelling or tour packages are being provided so
that it increases the revenue by proiding more travellers.
 It also provides the networking hotel facilities for its customers that helps in getting
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hotel rooms while various places visiting packages.
 It also providing cab facilities to its customers for dropping and picking through
transportation facilities.
 Many hotels provides extra premium facilities to their customer such as packages of spa
for relaxing the customer .
 In hotel room selection various different views in hotel room are being provided to
customer for creating a belonging with that place and according their taste. As it
promotes the beauty of the area with the perspective of providing relaxation.
TASK 2
2.1 Analysing the implication of integration to hospitality industry.
Integration strategy allows business entities to work together. It also enables organisation
to share their resources and customers. Integration strategy assist enterprise in providing quality
services as well as satisfaction to buyers. In context of Hospitality industry,it can be said that the
organisation plans to integrate with tourism companies in order to provide customers with
transportation facilities. Integration has great implication in hospitality industry. Integration plan
helps hotels in providing high level of satisfaction to customers. Moreover, it supports the
industry in meeting the expectation of tourist
It also assists enterprises in expanding business. Both hospitality and travel as well as
tourism sectors through integration strategy can utilise different tools and technologies for
coordinating with each other. Integration strategy also supports management in ensuring
effective as well as efficient utilisation of business resources. For example, hotel, is one of the
leading hospitality organisation which is planning to integrate in two manner these are ertical
and horizontal. (Chathoth and Olsen, 2007). In vertical integration, one company purchases
another organisation. However, vertical integration strategy helps in reducing operating cost as
well as helps firm in increasing profitability. Integration as business strategy supports
organisation in reaching to the economies of scales as well as assist enterprise in gaining various
other benefits. In context of hotel, by implementing the integration strategy, firm has able to
mark its presence in international market. Integration plan also has supported an enterprise in
increasing market share as well as has help in accomplishing different business objectives. It
also helps business entities in reducing intensity level of competition. In context of integration
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of hospitality industry sstrategy has provided firm an ease in entering into new market and
helped in establishing leading position in an industry. Integration has allowed Marriot
International hotel company to differentiate its products as well as services from that of
competitors.
It has helped business entity in increasing competitive strength which is very much
important in terms of maintaining sustainability in highly competitive business environment
(Bruns-Smith, Choy and Verma, 2015). Integration helps business in improving quality of
product or service and enhance customer experience
Through integration strategy, business entity can make appropriate plans for attracting
more number of customers. In horizontal integration, two organisation come together to form a
new big enterprise. Integration strategy has been implemented by Marriot hotel with the
objective of increasing customer base ( Crotts, Mason and Davis, 2009). It assists business entity
in delivering Quality product and quick services to customers. The concept of integration has
been adopted by wide number of enterprise operating business in hospitality industry.
In context of MI hotel organisation, Integration strategy has provided firm an opportunity
to increase working efficiency and is also supporting enterprise in expanding business
operations. It has also aided an enterprise in resolving business problems and assisted
organisation in improving business performance. The big benefit of implementing integration
strategy is that, it helps in creating monopoly market (Buhalis and Crotts, 2013). Integration
strategy has also assisted hotel, in diversifying business. It has helped an organisation in bringing
drastic as well as positive improvement in business plans, policies and operations. Integration
strategy also assist companies in generating high revenue and returns
2.2 Identifying the way integration has affected hospitality business.
Integration plan has positive effect on hospitality sector. This strategy has assisted MI
Hotel in increasing profitability and sales. It has also supported business entity in providing
customer with high level of satisfaction which helped an enterprise in meeting expectation of
tourist (Alonso and O’Neill, 2010). Integration strategy has provided hotel chance to improve
business performance. Implementation of integration strategy has led to the effective as well as
proper utilisation of business resources.
Marriot International has to has gained popularity and became market leader. This has
only been possible through integration strategies. With the support of integration or partnership
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with travel companies, an organisation becomes able to expand business operations. Integration
strategy has enabled an enterprise to provide customers with additional facilities such as
entertainment at various destinations as well as transportation services. The objective of hotel is
to dvelop strong relationship with client and provide customers with quick as well as quality
services. Firm can achieve these business goals by entering into partnership with other
organisation. Purpose of hotel behind innbehindtion h travel sector is to provide satisfaction to
customers and it also serves to increase market share as well as customer base.
Integration or partnership between two sectors, supports business entities in increasing
competencies which further helps in attracting more number of customers. Integration strategy
emphasizes on proper use of resources. Following are the impact of integration strategy on
Hospitality industry:
Cost integration: Both vertical as well as horizontal integration support organisation in
making huge investment on bringing improvement in business. It also allows firm to share
financial resources which are very much important in order to run business smoothly. Financial
resources are also required for providing quality services to customers.
Technology: Technological integration also have positive impact on hospitality industry.
Advanced technology provides assistance business entity in increasing working efficiency as
well as improving productivity.
Globalisation: Firm can easily enter into external market and establish good positions by
integrating with global organisation. Integration strategy assist an enterprise in expanding
customer base and market share.
Quality: Integration strategy also have major effects on the quality of product or
services provided by hotels to customers. Merger or partnership strategy assist an enterprise in
bringing improvement in quality of goods as well as services. Effective coordination as well as
mutual relationship is very crucial in order to improve as well as maintain quality standards.
Economies of Scale: It is considered to be the most significant impact of integration
strategy on hospitality sector. Integration plan helped business entity in achieving economies of
scale. It also aids an enterprise in reducing cost of operations as well as helps in increasing profit
margin.
The negative effect of integration strategy is that there is high possibility of conflicts
between two firms, which might have adverse impact on their business performance.
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There has been many mergers as well as acquisition that has taken place in Hospitality
industry in last few years. For instance, many big hotels such as Marriot hotel, which is
international organisation that has acquired Starwood Hotel (Heizer, 2016) .This is considered to
be the largest transaction in hospitality sector. Another example is Marriott acquired Delta
Hotels and Resorts for approx. $134 million.
TASK 3
3.1 Developing the rationale for selected project
The objective of selecting specific project is to ensure smooth running as well as
functioning of business. Another rationale of selecting specific project is to support hotel
organisation in increasing competitiveness and assist business entity in gaining competitive
advantage in the market.
Business plans is the road map which drives organisation towards achievement of
success as well as accomplishment of objectives.
In context of hotel, it has planned to diversify product line to enter ininto food and
beverages business. This decision has been made by management of hotel considering the scope
of growth as well as chances of earning high profits in particular field. Reason for diversifying
product line is to fulfil customer demands and provide them with high level of satisfaction.
Another rationale for adopting product diversification is to expand product line which
will help organisation in increasing profitability. The other factors which has been considered by
manager of an organisation are iincreasing in level of consumer income and favourable
economic condition in nation (nati, 2015). As an organisation is facing the various issues related
to quality of product, management in a firm has established certain standards of service delivery.
Establishment of standard has assisted business entity in resolvingissues and enabled enterprise
to deliver high level of satisfaction to customers. It has been suggested to hotel to introduce more
varieties of foods as well as development of new taste as this strategy assist an organisation in
attracting more number of customers.
An organisation has been advice to concentrate on quality of product as well as services,
now a days customers are more conscious about the quality rather than price.
The first stage in creating a business plan includes, deciding nature of business and name
of an organisation. As per the given case scenario, hotel business is to be open. Next phase in
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business plan is to determine the activities which are required to be executed for successful
launch of business.
First task which will be required for execution is inaugurations, which is very much
important in order to inform people about the products or services offered by company. In
context of hotel, manager in an organisation has planned to organise inauguration on Sunday, as
this is appropriate day to target desired customers. Hotel will be established near shopping mall
and at centre location of city. This specific location has been selected as people who visit in
shopping mall for making purchase of products required on Holidays. Establishing Hotel at
central location of city has been planned, as it will provide customer an ease in availing the
products or services offered by an organisation. This demographic strategy has been adopted by
manager, as firm will easily in target desired customer groups (Litvin, Goldsmith and Pan, 2008).
Another reason for selecting to locate business near shopping mall is that many upper-class
people and visitors from different countries come at that place for spending leisure as well as
quality time.
In addition, marketing manager in hotel organisation has planned to make use of internet
and digital platform such as social media sites for promoting services (Chan, Lacka and Lim,
2017). Morden promotional or marketing technique will assist an enterprise in generating brand
awareness and help organisation in reaching to wide number of customers. Manager in a firm has
planned to offer one time food to special guest and also to customers who make first purchase of
specific amount. In addition to this discount coupons and combo offers will be offered in order to
attract more number of people.
3.2 Developing the business plan for hospitality sector
Stage 1 – Development
Product service concept: Customer oriented concept has been adopted by an enterprise. Business
entity has planned to develop services as per the taste and preferences of the customers. In
addition, manager in a firm that has planned to concentrate on developing new varieties of
dishes or food in order to attract more number of customers.
Market research: It is considered as primary as well as most crucial activity which are required
to be executed before starting up of new business. Market survey will be conducted by marketing
manager in an organisation for gathering information about consumer taste, preference and
demand (Robson and McCartan, 2016). Personal interview as well as questionnaire will be used
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to determine target audience. The sample size to be selected is 500 people visiting shopping
mall. In addition to this internet as well as social media sites will be used for accumulating
information about the customer taste and need.
Target market: the target market will be working class people, who does not have time to cook.
In addition to this manager in an enterprise has planned to target youth.
Scale: As it is new start up, an entrepreneur has planned to establish small scale business. After
getting success at low level, business owner will expand business at large scale.
Funding: hotel funds capital through equity and some amount of resources will be obtained
through bank loan.
Licensing: All the permission related to the business operation will be taken by the specific legal
authority.
Stage 2 – Design
Ambience: By analysing the present trends, manager in hotel has planned to provide highly
decorated as well as luxury and ambience looks in order to influence people and attract more
number of customers. Multi coloured lights will be used and decoration will be simple, as this
will assist an organisation in maintaining standards of service deliveru.
Design of the hotel: Good quality of furniture will be used in hotel in order to provide customer
comfortable living experience (Baraban and Durocher, 2010,
Culture: Manager will use all tactics as well as strategies for maintaining effective as well as
supportive culture within an enterprise. In addition to this, proper training will be provided to
workers in order to encourage them to behave professionally. Some strict rules will be
implemented for staff in order to maintain stability in organisational culture.
Functional areas: Management in hotel emphasizes on functionality. An organisation will
consist of different function unit and separate department will be there in order to solve customer
queries. In addition to this, modern communication devices as well as techniques will be used for
ensuring smooth flow of information between departments.
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Marketing department in a company has been assigned duty to gain feedback and advice
from customers. As this tactic will assist management in identifying areas for f improvement.
Stage 3: Operations
Operations: Manager in an organisation has planned to use advanced technology in management
of services. Operational strategy will assist business entity in increasing working efficiency as
well as production capacity. It will also help an organisation in maintaining the quality of goods.
Modern technology will be utilised in operational activity as it will aid business entity in
eliminating defects in products as well as will support firm in reducing the cost of production
(Espino-Rodríguez and Taylor, 2006). In addition to this, modern delivery system will be used
by company in order to provide additional services or facilities such as online payment or
booking to customers (Distexhe and Perelman, 2014.).
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Illustration 1: Organisational Chart
Source :(Food and Beverage Service Organisation Chart, 2017)

Staffing and recruitment: MI hotel company consider human resource as most valuable assets of
business. Success as well as growth of company is based on human resource management. In
hotel human resource manager has been assigned with duty as well as responsibility to manage
people, business activities and also quality of goods. Manager in hotel is required to develop
appropriate strategies for recruiting highly talented, skilled as well as experience candidates
(Davidson, McPhail and Barry, 2011). In addition to this, Proper training and workshops will be
organised for assisting workers to deveop new skills and to increase their working capabilities.
Promotional activities: The unique promotional or marketing strategy will be implemented by
hotel for promoting brand, goods or services. Manager in an enterprise has been assigned duty as
well as responsibility to ensure that all the important elements such as product, price, place,
promotion, etc. has been included in promotional plan.
Product: company will have develop such products which suits the user requirement.
Goods will be designed with the utmost care to increase customer satisfaction.
Pricing: it is considered to be as important element of business plan. Determining the
appropriate price of product or services is very crucial, as this factor has direct as well as
significant influence on customer choice (Schuckert, Liu and Law, 2015). In context of Mariott
International hotel manager has planned to utilise low cost pricing strategy, as this will help
business entity in attracting more number of customers. Low pricing strategy will provide firm
an ease in entering into new market.
Location (Place): the target geographical location will be city centre and shopping mall.
Promotion: Advance promotional tools and techniques will be used for selling as well as
for marketing goods and services. As promoting those services that are considered to be difficult
task. It is required by manager in an organisation for making proper arrangement for employees
engaged in marketing activity.
Legislations: hotel will make the processing of restaurant legal to protect the employee’s rights.
CONCLUSION
It has been concluded from the report that both hospitality as well as tourism sector is
playing vital role in growth of each other. Study has provided information about the integration
which play an important role growth of hospitality sector. It has been ascertained information
from the assignment that integration strategy has both positive and negative effect on hospitality
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industry. The major negative impact of implementing integration strategy is high chances of
conflicts between two companies which might further have adverse influence on business
performance. In addition to this, all the positive impact as well as benefits of integration strategy
has been highlighted in the report. The different roles played by hospitality industry in travel and
tourism has been described in detail. Way integration strategy has affected hospitality sector has
been discussed successfully. Effective business plan that has been developed for MI hotel. It has
been suggested for hotel to adopt integration strategy, as this will assist business entity in
fulfilling consumer demand and will help in meeting client expectation.
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REFERENCES
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Buhalis, D., and Crotts, J.,2013.Global alliances in tourism and hospitality management.
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Campos-Soria, J.A., Marchante-Mera, A. and Ropero-García, M.A., 2011. Patterns of
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Chathoth, P.K. and Olsen, M.D., 2007. The effect of environment risk, corporate strategy, and
capital structure on firm performance: an empirical investigation of restaurant firms.
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Crotts, J. C., Mason, P. R., and Davis, B. 2009. Measuring Guest Satisfaction and Competitive
Position in the Hospitality and Tourism Industry an Application of Stance-Shift Analysis
to Travel Blog Narratives.Journal of Travel Research.48(2). 139-151
Davidson, M., McPhail, R. and Barry, S., 2011. Hospitality HRM: past, present and the future.
International Journal of Contemporary Hospitality Management. 23(4). pp.498-516.
Distexhe, V. and Perelman, S., 2014. Technical efficiency and productivity growth in an era of
deregulation: the case of airlines. Swiss Journal of Economics and Statistics.130(4).
pp.669-689.
Espino-Rodríguez, T.F. and Taylor, J.S., 2006. The perceived influence of centralising
operations in chain hotels. Tourism and Hospitality Research.6(4). pp.251-266.
Heizer, J., 2016. Operations Management, 11/e. Pearson Education India.
Kroll, A., 2015. Exploring the link between performance information use and organizational
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Litvin, S. W., Goldsmith, R. E., & Pan, B., 2008. Electronic word-of-mouth in hospitality and
tourism management.Tourism management.29(3). 458-468
Robson, C. and McCartan, K., 2016. Real world research. John Wiley & Sons
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Online
The positive potential of the tourism industry. 2018. [online]. Available
Through<http://www.eldis.org/document/A22328>
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