Analysis of Travel and Tourism Industry

The assignment delves into the world of travel and tourism, a vital component of the hospitality industry. It highlights the growing number of businesses in this sector, providing effective services to enhance sales and profitability. The report includes references from various studies and journals that emphasize the significance of social media in the consumer decision process, the impact of international business travel on innovation, and the importance of pricing in the hospitality sector.

HOSPITALITY PROVISION
IN TRAVEL & TOURISM
SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship between hospitality and wider travel and tourism business.......................1
TASK 2............................................................................................................................................3
2.1 implications of integration to hospitality industry................................................................3
2.2 Integration has affected a hospitality business.....................................................................5
TASK 3............................................................................................................................................7
3.1 Rationale for a selected project.............................................................................................7
3.2 Project proposal and design of hotel.....................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality sector is considered as an important part of tertiary sector thus, it includes
small sectors such as event management, lodging, restaurants, transportation etc. According to
current market scenario, new technologies are helping this sector in providing all the facilities to
its travellers in an effective manner (Darcy and Pegg, 2011). The report will focus on diversity of
hospitality industry so that researcher can investigate the same in context with travel and tourism
sector. Thus, for this impact of integration on hospitality industry will be determined by the
learner. Interrelationship between hospitality and wider travel and tourism business is explained
in this report. Apart from this, implications of integration to hospitality industry is included in
this assignment. Further in this report, integration and its affect on hospitality business is
mentioned. Lastly, a plan is developed for hospitality business including operational
requirements of business.
TASK 1
1.1 Interrelationship between hospitality and wider travel and tourism business
Interrelationship among hospitality and travel and tourism sector
Name: XYZ
Date: 5 June, 2018
Hospitality Sector: It is a sector that is big and provides different kinds of facilitates and
services to travellers in terms of transportation, event management, hotel industry and many
more. Thus, it includes a wide range of sectors and offers excellent services according to the
choices and preferences of customers.
Travel and Tourism sector: This industry includes different kinds of services such as travel
events to different places, accommodations, sightseeing etc. Therefore, in current market
scenario, this is one of the leading sector and most of the people are now enrolling into this as a
result it is enhancing their sales and profitability. For this, industry is offering various kinds of
interesting schemes which are according to needs and wants of customers.
Role of Hospitality Sector in Tourism Industry: Under the industry of travel and tourism,
hospitality plays an important role and they are contributing in the economy in United
Kingdom. Prime role of this industry is to provide appropriate services to its customers in order
to gain consumer base. For pulling attention of maximum number of customers, people who are
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working under this are introducing new restaurants, amusement part at a reasonable cost.
Henceforth, with the help of excellent facilities they are retaining customer's loyalty and
influencing them to visit these places again.
Interrelationships between hospitality and travel and tourism business: As hospitality
industry is growing at a rapid speed. People are now planning and travelling in different places
so as to enjoy their holidays or to attend any business meetings or sports events. Main focus of
this industry is to give proper services so as to gain competitive advantage. Therefore, people
can avail facilities according to their choices and preferences. Other factor that must be looked
by this industry is that they fix prices by considering the nature or environment of market area.
Henceforth, for increasing the sales and profit Travel and tourism sector is linked with many
other sectors as well. For example: Travel agency or operators are joining hands with different
organisation who are assisting them in providing excellent services to its travellers like while
travelling to different places as they have collaborated with various agencies in relation to
accommodation, transportation, food facility and many more. Some of the points are mentioned
below in order to explain about interrelationship amongst different tourism industry:
Conferences and exhibition: Travelling is not only for spend leisure time it can also be for
some business or knowledge purpose. For attending any kind of conferences or exhibition
people can go for national or international trips. This is an effective idea for attracting a large
number of people to any kind of specific places. Conferences and exhibition can be arranged by
ministry affairs or by any big companies of country so as to increase their market shares and
value as a result it will increase their productivity and profitability.
Packages and Holidays: Now a days people are preferring to plan their holiday and for this
they are looking for best available offers in the market. In context with United Kingdom, there
are many places where people can visit and travelling agencies who are providing these
facilities are making appropriate plan and packages at a reasonable cost. Therefore, people are
availing these services according to their budgets. For example: According to current market
scenario or recent trends, 5 star hotel cut down their prices during the peak time of vacation as a
result it is increasing their sales and profitability. Along with this, sector of tourism is
considering all the needs and demands of customers so that they can give excellent services to
them.
Aviation: It is prime role and necessity of agencies that are providing facilities of travel and
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tourism to make a better relationship between other countries as well so that they can operate
their business properly. For example: Thomas Cook has its own airline services that is assisting
them in providing better to its visitors. Along with this, they are providing food and beverages
to visitors who are visiting exciting places in United Kingdom.
Business Travel: Travel is basically classified into two categories i.e. leisure and business
activities. For them, travelling agencies are providing them with offers and for this they are
concentrating in making effective schemes through which they can attract maximum number of
customers. Travel and tourism company with their joint ventures they are providing all the
facilities like meeting rooms, conference halls, Wi-Fi facilities which is helping them in
retaining customers loyalty. Therefore, all the factors are helping them in improving their sales
and profitability.
Visitors attraction: Around the globe there are many places that are attracting number of
customers therefore, it is prime responsibility of travel agencies to make plans and packages
according to the market trends that is going on in the market area. For example: As most of the
people are now focussing on adventure sport for spending their holidays so they are planning
accordingly. Therefore, TUI is making strategies and packages so that a large number of
traveller can avail this so as to enjoy their holiday.
TASK 2
2.1 implications of integration to hospitality industry
As hospitality industry is very big as there are many sectors who provide excellent
services under this. Most of the companies are offering their services through PKF hotel experts
and they are focussing on providing excellent services as per the needs and wants of customers
which is enabling them in sustaining a better position at market area. Integration is one of the
beneficial factor that is as they help them in giving effective services to its customers. Hence, it
is assisting them in running their business and accomplishing the task so as to gain competitive
advancement (Hopeniene, Railiene and Kazlauskiene, 2015). Furthermore, it can be classified
into tow or more categories through which they are developing their business operations.
Although it provides maximum benefits but before incorporating this in their business company
must go through necessary system through which they can enhance their operations. As a result it
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is helping them in delivering effective services to its clients. Along with this, it is assisting them
in maintaining their reputation for a longer period of time. Thus, through this, they are getting a
chance of increasing their sales and profitability in the market place. Different kinds of
integration are mentioned below so as to understand it in a better manner:
Vertical integration: In this, a company purchase shares of other organisation along with
its suppliers for running their business effectively. This assist them in reducing the cost that will
be applied for the entire process of business operations. As PKF hotel includes different kids of
hotel industry but expert of company are majorly focussing on Marriott Hotel. They are
providing services along with the help of different distribution channels and this is somewhat
reducing the operative cost and enhancing competitive advancement (Hovhannisyan and Keller,
2015). Further the point has been explained below with the help of an example:
For example: For providing effective services Marriott Hotel and Marston's Plc can
integrate and by this step both companies can improve their sales and market value. As a result it
is assisting them in giving proper services.
Lateral integration is effective if a company wants to achieve any long term objectives in
speculated time frame and this will help them in attaining maximum benefits.
Importance of branding and pricing policies
Branding and pricing both plays an important role as both are necessary for enhancing the
process of sales and profit level of a company. Pricing is considered as a very sensitive element
so firm must fix rates which customers can agree to pay rather than making it high. Whereas
Brand is what that people prefer to buy according to their interest. Thus, customers buy goods
that can satisfy the needs and wants of consumers. For example: If an organisation manufacture
goods as per the needs and wants of customers than it is a possibility that their sales can be
increased but if it is not not done than its implications can be inappropriate. Hence, it is
important that they give excellent services to its customers (Hudson and Thal, 2013). Therefore,
it will help company in retaining loyalty of customers for a longer time. Globalisation is also one
of the reason why the sector of travel and tourism is improving as it is helping them in using
latest technologies that are providing better results in return.
Horizontal Integration: This is considered as an another integration that helps company
in obtaining a competitive advancement. Other than this, it is assisting them in operating their
business in a systematic manner. For making their business effective horizontal integration uses
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innovative ideas and thoughts as a result is enhancing customer base and providing benefits in
terms economy and GDP of country. Thus, in context with United Kingdom there are various
travel and tourism that are working accordingly. As a result it is increasing performance level of
organisation because they are working as per the needs and wants of consumers (Jaafar and et.
al., 2011).
Henceforth, all the hotels are incorporating innovation and creativity for enhancing their
business operations.
2.2 Integration has affected a hospitality business
Integration has improved the working of business operations as they have made task
more convenient and easier. This majorly collaborate two competences of different firms so as to
attract more and more people towards their organisation. For this, they utilises resources that are
available to them like technologies, cost etc. Along with this, companies are including both
horizontal and vertical integration for making services more productive. Latest technologies are
providing and assisting them in providing quality services at reasonable cost. Along with this,
companies that comes under this must go through current market trends in order to understand
and identify what is going in the market. As with the change in course of time trends also
changes so it scan be quite difficult for companies to provide services in a go therefore, they
must have a backup plan for this. In regards to this, if a hotel industry wants to increase its sales
and profitability than they must know the peak time by analysing their past records. This will
enable them in identifying factors through which profit can be enhanced (Kelly, 2010).
Affects of Integration
Quality: Organisations that are working in this sector, their prime role is to give effective
services to its end customers so that they can come on a regular basis. In addition to this,
Marriott hotel for increasing their sales are implementing innovative ides and as a result it is
giving them effective results. By applying new technologies for giving advertisement it is
helping them in attracting more and more people towards their organisation. Henceforth, it is
creating a positive image in front of its customers.
Improving attraction: Marriott hotel in terms of attraction, they are very attractive as
they have worked on it and it is helping them in doing the same. They are providing services
which any person can avail as it is low at cost. Therefore, for attracting people they are providing
offers such as one room booking free along with two (Lashley and Morrison, 2013).
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Enhance level of consumer satisfaction: By providing effective services company can
improve their customers satisfaction. This will help them in adding value to its services. For
example: In case of PKF they are giving appropriate services and it is increasing their brand
value.
Added some value to service: In this, value is delivered with the help of goods and
services and also through experts of hotel. Thus, in case of PKF hotel experts they are providing
services by luxury goods and accommodations with the help of integrated process.
Control of Sub sectors: It is essential companies have a control over all the resources so
that it is not used in a wrong manner. The biggest disadvantage of this is that it reduce the
number of customers if people are not provided with better facilities (Lashley, Morrison and
Randall, 2012).
Increase in power of customer spending: As with the increase in salary or economic
level people are becoming more eligible in spending money. People are travelling to various
places for spending their vacations as a result they are contributing some amount of money in the
economy of a country.
Henceforth, if the company Marriott hotel changes the cost price of than it is a possibility
that a large number of people will avail their services. For this, firm can use economy of scale
through which they cost can be reduced and profit of the company can be increased.
Implication of an integration: Some points are explained below in context with
horizontal and vertical integration is given below so that it can be understood in a better
manner:
Importance of pricing policies and branding: In order to run business in an effective
manner it is important that company makes proper strategies in terms of pricing and branding
policies. This will help them in attracting a large number of people, as a result through this
company will be able to improve their brand image and position at market area (Law and et. al.,
2015).
Control and manipulation of market: It is important that companies who are working in
this sector must monitor the current situation at market area. This will help them in implementing
their strategies in effectively.
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TASK 3
3.1 Rationale for a selected project
In this Marriott restaurant offer good quality food and other services to its consumers.
Management decide to make the premises of hotel more better as this will support in expansion
of business activities. Manager is the one who remain responsible to develop proposal for hotel
development. Further, it is very essential for manager to carry out research as with this they can
identify and collect information about market trends. In this way firm can offer services to its
clients as per their specific requirements (Lynch and et. al., 2011). This support in offer better
products in markets through which company can get competitive benefit. With help of featured
services company can attain its set goals and can sustain for long time period. Necessary steps
are given in the following points:
Concept of products and services: Different type of discount and other offers are given
by firm in summer season in order to boost up the sale. Various type of services are offer by
firm to fulfil the needs of customers. For make the experience of customers better it is very
essential for them to offer them extra services such as gym facilities, parks and many more. In
this way, company can increase its profits.
Target market: Company is making appropriate strategies for attracting people of every
class whether middle or higher class but they are mainly focussing on targeting people who
belongs to middle class. For increasing the sales and probability they providing services as per
the demands and wants of customers. As a result it is helping them in providing better services
along with increasing their sales and profitability.
Operative model: Manager of Marriott hotel is using different kinds of operative
approaches so as to increase and enhance their business operations. They are assigning all the
task according to the capabilities of candidates and it is assisting them in work more effectively.
In addition to this they are hiring candidates who are eligible in performing different kinds of
works that are required in hospitality industry (Medlik, 2012).
Location: In order to have an increase in their sales Marriott hotel, is looking out for the
locations and it is giving them an overview about the places form where they can gain maximum
benefits.
Designing: It has been evaluated if infrastructure is good than it will attract a number of
customers for example: along with the luxury items hotel industry can add gym facilities, should
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concern hygienic rooms for their customers. This will create a belongingness towards the
company in the minds of consumers or people who are visiting their hotels for a pleasant stay.
3.2 Project proposal and design of hotel
Planning or designing an effective plan is important in order to perform the task in an
effective manner. Same as business plan is a kind of statement that assist organisation in
managing the work in a systematic way. In this, various kinds of information are included that
further helps managers of a company in analysing the process whether they are going in a right
direction or not (Mok, Sparks and Kadampully, 2013). Below certain steps of planning is
explained so as to understand it in a better manner:
Process 1: Development: This is considered as the first step under which a process of
establishing a new business is developed. Under this all the criteria about how to operate the
business in a systematic manner is included.
Concept: This starts in the mind as in this a concept of establishing a business evolves,
Market research: This is a important task that company must perform so as to know the
market situation of a particular area. Thus, it helps organisation in determining the services that
they can give to customers so as to attract a large number of customers.
Target Markets: Every business before establishing their business look around the
factors form which they can gain maximum benefits. As Marriott Hotel is focussing on services
which can be avail by both middles and high class people.
Business size: As Hotel is big and there are various branches around the world which is
helping them in increasing their profit shares. Thus, in terms of business size the company is
large in compared with others (Murphy, 2013).
Funding: This is one of the crucial part for operating their business in an effective
manner and in case of Marriott hotel they are not facing any such kind of problem. As all the
funds are arranged by their Stakeholders and through different approaches as well.
Current Period Year to date
Actual Budget Last year Actual Budget Last year
Rooms Revenue £1500 £1800 £1000 £7000 £6700 £6300
Telephone [phone]
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expenses
Gift shop
expenses
10 8 8 45 45 39
Miscellaneous
expenses
5 5 5 20 20 20
Restaurant
revenue
17 17 15 75 73 70
Beverages
revenue
8 8 8 30 28 30
Subtotal of Food
and Beverages
revenue
25 25 23 105 101 100
Total of hotel
revenue
48 46 42 214 208 199
Product and Services: As the sector wholely depends on the services that are provided by
them so its is important that whatever facilities are provided should be best in class.
Licensing: This is what provide by the regulatory bodies as this helps the organisation in
operating their business in an effective manner (Nwosu, 2014).
Process 2: Design:
Ambience: As per the current market situation it is essential that company provides
services like accommodation according to the choices and preferences of customers. For this,
department of management should be proper.
Interior: In current market scenario, most of the organisation are focussing and working
on interiors so that they can attract a large number of people.
Culture: Under this, it I prime duty of management that they provide appropriate culture
so that travellers feel connected with the environment that is provided by them.
Functional areas: Marriott hotel, is giving effective information to customers whatever
they want to ask or query.
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Sustainability: If organisation provides effective services to its customers that they can
sustain the loyalty of them for a longer period of time (Pulina, Detotto and Paba, 2010).
Process 3: Operation
Staffing through financial areas: Here the role of HR department, come into being as
they provide with the appropriate staff members who can work and provide maximum benefits to
the organisation.
Promotional activities: It is an essential factor for making its customers aware about the
offers which they are providing (Darcy and Pegg, 2011).
Pricing: This is an important factor as company must know price which customers can
agree to pay. This will enable organisation in increasing the sales and profitability of a company.
CONCLUSION
From the above report it has been concluded that, travel and tourism comes under
hospitality industry and most of the people are establishing their business in this sector. They are
providing effective services for enhancing their business and as a result it is increasing their sales
and profitability.
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REFERENCES
Books & Journals
Darcy, S. and Pegg, S., 2011. Towards strategic intent: Perceptions of disability service
provision amongst hotel accommodation managers. International Journal of Hospitality
Management. 30(2). pp.468-476.
Hopeniene, R., Railiene, G. and Kazlauskiene, E., 2015. Potential of virtual organizing of
tourism business system actors. Engineering economics. 63(4).
Hovhannisyan, N. and Keller, W., 2015. International business travel: an engine of innovation?.
Journal of Economic Growth. 20(1). pp.75-104.
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.
Kelly, C., 2010. Analysing wellness tourism provision: a retreat operators' study. Journal of
Hospitality and Tourism Management.17(1). pp.108-116.
Lashley, C. and Morrison, A., 2013. In search of hospitality. Routledge.
Lashley, C., Morrison, A. and Randall, S., 2012. memorable meal ever! Hospitality as an
emotional experience. Culinary taste, p.165.
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.
Lynch, P. and et. al., 2011. Theorizing hospitality. Hospitality & Society. 1(1). pp.3-24.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Murphy, P.E., 2013. Tourism: A community approach (RLE Tourism). Routledge.
Nwosu, B., 2014. Hospitality education: sustainable empowerment opportunities for Nigerian
women. Worldwide Hospitality and Tourism Themes. 6(1). pp.62-76.
Pulina, M., Detotto, C. and Paba, A., 2010. An investigation into the relationship between size
and efficiency of the Italian hospitality sector: A window DEA approach. European
Journal of Operational Research. 204(3). pp.613-620.
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