Economic Integration and Its Impact on the Hospitality Industry

The provided content highlights the importance of improving quality and integrating sub-sectors to enhance the overall performance of the hospitality industry. The papers and journals discussed various aspects, including sustainable tourism, social entrepreneurship, consumer behavior, and digital footprint. Moreover, they emphasized the significance of education and training in developing a skilled workforce for the industry. Ultimately, the content concludes with the potential development of an underwater restaurant as a means to revitalize the sector.

Hospitality Provision in Travel &
Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1- ARTICLE.........................................................................................................................3
TASK 2............................................................................................................................................6
2.1 Analyzing various implications of integration to hospitality industry...................................6
2.2 Discussing how integration may affect hospitality businesses..............................................8
TASK 3..........................................................................................................................................10
3.1 Developing a rationale for underwater restaurant...............................................................10
3.2 Developing a plan for a hospitality business including the operational requirements of the
business’ organizational structure in relation to human resource allocation.............................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
2

INTRODUCTION
Accommodation providing industry plays a important role in the industry of travel and
tourism as it provides services such as accommodation, food etc. Under this service industry,
consumers are only able to consume services. There are various booming sectors in the travel
and tourism industry such as aviation, IT, hospitality etc (Popescu and Popescu, 2016).
Hospitality sector also includes event management, lodging, theme park etc. The present report is
based on Dorchester Collection that is a private hospitality firm situated in London, UK. It has
10 luxurious five star hotels in UK. Total asset of the firm is £1.893 billion GBP as well as total
equity is £879 million GBP. The following chain has 35 hundred employees working under its
name. Further, the report will include a brief discussion on the interrelationship between travel,
tourism and hospitality industries. Also, it will analyze implications of integration in the
hospitality sector. At last, the report will include a plan for accommodation providing business
that further include operational requirement of the entity.
TASK 1- ARTICLE
Responsibilities of hospitality industry within TT sector
From past few years, hospitality industry has become increasingly popular and has been
interrupted in various of means that can be industrial private as well as commercial services.
Accommodation services Hospitality industry can be described into different attributes that helps
in dealing with host or guest. Hospitality industry also helps in creating relationship that can be
either private or commercial services (Sigala, 2016).
Keys to successful in both commercial as well as private services include knowledge of
what can raise pleasure in the guest. Hospitality as a process includes arrival of guests, providing
comfort as well as fulfillment of the client’s wishes. Tourism industry is not same as the other
industry because it provides services to the consumers as well as other industries rendering
tangible products. Accommodation and tourism industry cannot be separated as both work
together for the success of each other. Following are importance of hospitality industry towards
the travel and tourism sector (Robinson and et.al., 2016).
Firstly, there are several components in the tourism industry including beverages, food,
transportation, place of attractions and lodging. All such components are also part of the
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accommodation service providing sector. Each of the elements is interrelated with each other.
So, in order to make sure that the customers will feel satisfied by using the tourism services,
there is necessary to ensure that they feel satisfied in terms of every element. Hospitality based
organizations such as Dorchester Collection provides food and beverages to the customers and
ensures that they are well treated during their lunch, dinner etc. Also, accommodation service
providing sector helps the tourism industry in applying transportation services to customer or
passenger to make them feel comfortable during their journey (Richins and Hull, 2016). They
provide cabs etc facility to guest so that they find convince in the traveling as well as exploring
UK. Other tourism components also need the hospitality services. Following points help in
understanding the significance of hospitality industry in the travel and tourism sector.
Secondly, services provided by the TT industry involves intangible product. Guests or
consumers will never feel that the product offered to them is precious until and unless they buy
it. So, when they buy those offered services, it is the prime responsibility of service provider in
relation to their clients will be provided with the best services. so that they can feel comfortable
by using services. All the services provided such as guest greeting, clean as well as tidy rooms,
showing the facilities provided on others are types of hospitality amenities. For instance, when
the guest entering in the hotel, service provider cannot simply give them the room key and let the
guest looking for their room without any assistance (Brandon-Jones and et.al., 2016). This is not
known as a hospitality or accommodation providing industry. Hospitality industry is more than
that the service provider is required to be friendly, courteous as well as helpful.
Thirdly, main purpose of hospitality is to encourage the consumers for repetitive
purchase as in the tourism industry, people are not just looking at the facilities or price offered
but are also looking at the services provided to them. This situation will generate higher revenue
for the company. Hospitality organization such as Dorchester Collection is not required to work
hard to promote its services. They just have to concern with the services provided to the
customer and must fulfill the guest’s expectation. This is more valuable rather than just
providing the best facilities. Tourism related companies such as Thomas Cook and Cox King are
required to emphasize on hospitality services to attain success (Getz and Page, 2016).
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Tourism industry is not just providing facilities to the consumers or guest, hospitality
services are the main key to determine the success of tourism company. As a service provider,
they provide the best services as per the customer’s expectations.
Interrelationships between hospitality and wider travel and tourism businesses
Tourism can be defined as a people traveling for business, leisure or recreational purpose.
It can be stated as a different field altogether. It can be said that it has been subdivided into
various small business sectors that are required to be catered by the hospitality sector. To
understand it more precisely, an example can be taken. For example, family of five had gone for
a trip, to reach destination they are flying through a specific Arline (Horner and Swarbrooke,
2016). Food and beverages provided by the airline come under the hospitality services. Stay of
family in a hotel, various services provided to them by hotel also comes under the hospitality
industry. Hence, it can be said that tourism industry is made up of several small sectors of the
hospitality industry. In other words, it can be said that hospitality industry is a supplier of
tourism industry. The accommodation providing business enterprise such as Dorchester
Collection has served various important service providers in travel and tourism industry. Business travel- Passengers or guests those who come for business visits always need
some extra services in order to accomplish organizations task. These facilities will make
them more comfortable during their work. In order to attain such facilities, people like to
find the hotels which provide them with the facilities of WI-FI etc. Through this, they can
access the internet easily. Also, the business people try to conduct their meetings and
important programs in the hotel for easy availability of services. If people come for
business visit it will impact the business of tour operators because they need some extra
facilities related to their work (Mansour and Ariffin, 2016).
 Conferences and exhibitions: Exhibition and conferences are related with the tourism
business. For example, Dorchester Collection arranges various conferences as well as
seminars. It also allows exhibitions within its lobby or dining area. All such types of
events promote the growth of travel and tourism industry. Exhibition offers availability of
watching products which are antique and unique in nature. Generally, exhibition takes
places in hotels which help the hospitality business to get more profits. This will help in
increasing the business of hospitality and tourism industry both (Edgell Sr, 2016).
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 Visitor attraction: Attraction can be anything which makes people attracted to the sites. It
may be in the form of theme park, museum, natural parks and other incredible things etc.
Such types of visitors attraction not only increase the demand tourism business but also
leads to increase the hospitality business of various hotels such as Dorchester Collection.
This is happens as when a family makes tour programs, they need to book hotels for their
living. Other than his, most theme parks gave their own cafes as well as hotels to give
better services. That further leads in enhancing the businesses of both hospitality as well
as tourism business. Different places are there which are the center of attraction for the
visitors. This will help to increase the booking of the rooms in hotels, through which the
business of the whole industry get affected (Hassanli, Gross and Brown, 2016).
 Package holidays: Package holidays are also important for developing tourism business.
Different tour operators such as Thomas Cook etc are planning different types of tour
packages to attract the people towards the hotels such as Dorchester Collection. It is not
essential that there are always expensive tour packages are there for the people. Lower
cost or budgeted tour packages are also there in which 3 or 4 star hotels are included.
This attracts both middle as well as high class people to afford the holiday packages.
TASK 2
2.1 Analyzing various implications of integration to hospitality industry
Integration helps the organization in enhancing market presence as well as increase the
market share of the Dorchester Collection hotel. Meaning of integration is to bring up all small
contents into single system to make them function as a one. Vertical integration: It is an arrangement through which the supply chain of one
company is owned by another. In other words, distribution channels of one company are
acquired by the channel of another organization (Hospitality in travel and tourism, 2016).
This will help the company to reduce their operating cost as well as expense relating to
dispersion of products. Dorchester Collection Hotel can use vertical integration
arrangement for reducing its distribution cost. Other than this vertical arrangement also
assist the chosen hospitality organization in maximizing its profitability along with that it
will also help in lowering the extra cost. Through this, Dorchester Collection will be able
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to control suppliers which are related to transportation as well as accommodation services
of the organization. Vertical integration will also help the disorganization in attaining
sustainable advantages over its rivals in the market (Dedeke, 2016). Horizontal integration: It is the process of expanding the business on consumer base.
This will help the chosen hospitality Hotel to enhance the level of production by
expanding their customer base. The organization can also perform acquisition as well as
merger of the business with another business entity through which they are able to cover
more customer network within the market. This process helps Dorchester Collection
Hotel to make monopoly market conditions through which they can get abnormal profits
within the marketplace (Oh, Assaf and Baloglu, 2016). Horizontal integration is of
complementary nature of arrangement in which is opposed to competitive. Many airlines
are there which works for hotel chains. These relations help the establishment to attract
guest towards the Dorchester hotel. By performing merger, the company can add its
market share along with that it may also attain competitive advantage in the market.
Apart from this, the organization will be able to provide improved services to the
consumers which further helps in attracting them towards the respective hotel. It will help
Dorchester in generate monopoly market conditions in the tourism business (Robinson,
Ruhanen and Breakey, 2016). Branding and pricing policies: A brand is the thing which attracts guest or visitors from
its name only. It is related to feelings and emotions of which they are getting from the
services providers. The success of the Dorchester Collection hotel depends on its brand
value in the market. Merger between two organizations helps them to increase their brand
value. Also, it will also affect pricing policies of the business because merging of two
businesses will help the organization in increasing their prices so that they can give better
services to the consumers (Weaver and Jin, 2016).
Implication of the integration on Dorchester Collection Hotel: Increased globalization of hospitality industry: Globalization of hospitality company
refers to an expansion if their business outside the boundary. It will also help in
increasing business in the global hotel industry. From the following the Dorchester
Collection Hotel will be able to cover more region. Through integration, the chosen
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hospitality business enterprise will be able to face competition in the international
market. Increase in globalization will lead the hotel towards reduce the barrier related to
trade because the company has different branches worldwide (Bartlett, Johnson and
Schneider, 2016). Through this, the company can also create their own accounts on
different website through which they can get connected with different clients on their
social media network.
 Pricing policies: Integration will impact on the pricing policies of the hospitality
business. Merger of two establishments may place a huge impact on the pricing of the
services of the organization. The success of the business will depend upon the prices and
image of the business. Dorchester Collection Hotel should use Horizontal integration in
their business as this will help in controlling the market competition (Horton-Tognazzini
and Williams, 2016). Other than this, for controlling supply chain, they should follow
Vertical integration so that they can be able to control the supply in the market.
2.2 Discussing how integration may affect hospitality businesses
Integration places positive as well as negative impacts in the business activities of
hospitality firm such as Dorchester Collection. It helps in sustaining competitive advantage over
the competitors in the market. This can be done by combining or merging two or more
organization will help in attracting as well as satisfying consumers more and more (Jordan,
2016). Integration also helps in creating monopoly by providing best services to consumers. This
will lead the Dorchester collection towards a dominant role in the market. It also place impact on
the economies of scale. It can be achieved with the help of integration as it reduce operating cost
and maximize the profitability. Economies of scale: With the help of integration Dorchester Collection Hotel will be
able to reduce its operating cost by creating more profits from the business. Integration
will also assist Dorchester Collection Hotel towards enhancing its market share so that
respective hotel can get dominant role in the market of tourism industry. The tour
operators such as Thomas Cook etc can also lower down there cost of introducing new
services (Russo and Richards, 2016). Through horizontal integration, Dorchester
Collection hotel can enter in new markets more easily. Economies of scale are related to
benefit of cost due to increase in output, size and scale of operations. Integration will
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also help the chosen hospitality organization to achieve benefits in their cost and inputs in
the business activities. Through this, a fixed amount of cost should be spent on providing
the services to the consumers. Standardization: Integration, Dorchester Collection Hotel can also give standardize
services to the guest or consumers. Also it will help in increasing the customer
satisfaction. Apart from this, client will get innovative services from the hospitality
organization which will further result in the growth of Dorchester Collection. Along with
it standardization will help in enhancing the brand value of Dorchester Collection Hotel.
Standardization will also assist the organization in introducing new as well as improved
resources through which the company can get new things. It will help in attracting new as
well as existing consumers (Russo and Quaglieri, 2016). Fewer major organizations: Incorporation will lead towards the expansion of
organization such as Dorchester Collection in the hospitality sector. If the companies are
merging with each other it will lead to reduce small sector accommodation providing
business which is beneficial for Dorchester Collection Hotel. As there is less big
organization in the business, Dorchester Collection Hotel can get more profits in the
Market. Integration will help to merge two or more organizations that assist in reducing
competition in the market. Control of sub sectors: Apart from all the above, the Dorchester Collection will also be
able to control the sub sectors of business. This will also make them able to regulate other
sectors (Huan, 2016). Through this, Dorchester Collection Hotel will make more focused
strategy in order to improve its market share.
 Improved quality: If the establishments such as Dorchester Collection and any other
hospitality firm are getting integrated to each other. Then it will help in enhancing the
quality of the amenities. Through this, the organization will be able make the consumers
more satisfied and also the travelers will be attracted from the services of the business.
They can focus on health and safety concern of customers. Apart from this, they can also
improve their technological services.
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TASK 3
3.1 Developing a rationale for underwater restaurant
An individual resident of UK has decide to open a underwater restaurant in UK to give
competition to another hotel such as Hilton. Underwater restaurant to be named as Blue Ocean
restaurant are comping up these days as a leading trend. Maldives etc have made its a visitors
attraction which seeks lot of tourism in Maldives. So going on research the individual is required
carry reasecrh to find future growth in the project of underwater restaurant that is Blue Ocean
restaurant. As this concept is not much common but it creates curiosity among visitor. They feel
that they may not get second chance to visit such place and should experience such things in
their life. Specially the people who are afraid of swimming for them its great platform to go
undersea without any scuba gear (Jones, Hillier and Comfort, 2016). People now a days visit
different places to with there inner beauty and what they don not have in there respective states
or nations. For that they want to explore the world and different cultures, nations etc. for those
who love sea food they would get a unforgettable experience of sitting downside the sea area and
eating food they enjoy such interesting things. Following concept will help the Blue Ocean
restaurant in increasing its brand value as well as the number of customers. It can also place
scheme attached to its restaurant. Underwater restaurant is a great experience and every visitor
wants to experience.
This will not only benefit the individual but will also increase the revenue of travel
tourism industry. They can provide various schemes in the packages to attract the customers.
Also this will lead to increase the brand image of Blue Ocean restaurant and many customers
will live there to experience such kind of underwater restaurant (Laeisand and Lemke, 2016).
Maldives has been taking advantage of such restaurant and had made it one of the most
important visitors point in London. The people who go with family or for honeymoon etc
definitely go at-least once to take the experience of underwater restaurant. Having a underwater
restaurant will automatically lead towards enhancing the position in the market. Also will lead
will help in sustaining competitive advantage over its various competitors in the market. For the
research it can travel to various underwater restaurants and resorts of Maldives, Dubai, etc in the
world wide. This will help the individual in understanding or knowing various advantages or
disadvantages of underwater restaurant and also may come to know weaknesses of other
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underwater restaurant. Those mistakes or weakness points it has to keep in mind while building
its ow restaurant. This will further help the organization in giving strong competition to its
competitors in the market (Schroeder and Pennington-Gray, 2016).
3.2 Developing a plan for a hospitality business including the operational desires of the business’
structure in relation to allocation of human resources
Organizational structure of Blue Ocean is hierarchical in nature.
(Source- Hospitality in travel and tourism. 2016)
Stage 1- Development
the Individual who had own the idea of Blue Ocean restaurant has already establishes its
other cafes in 2006 to manage a portfolio of some of the world’s foremost luxury restaurants of
Europe. In order to enhance the growth of company the individual had come with the idea of
underwater restaurant launch signaled a change to the strategic goals of the individual. By
applying its unrivaled experience in operating as well as owning some of the world’s greatest
individual restaurant, the individuals vision is to build memorable restaurants in United
Kingdom, with a appetite for brilliance and invention, honoring the individuality and heritage
(Xu, Leung and Barbieri, 2016). This can be achieved by obtaining restaurant as well as
managing cafes on behalf of third party individual. They are icons in their own right with
worldwide reputations as places offering the best and most sought-after involvements of good
living, charm, elegance and service. Each hotel have a good time its own original character
improved by modern-day styling and advanced facilities. With historic buildings in exceptional
locations each hotel also embodies the culture of its city. In order to provide innovations and
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excellence to its guest. Individual has came up with the idea of underwater restaurant., this is to
to provide its guest with the ultimate luxury services as well as to increase the brand image to
achieve the ultimate goals (Popescu and Popescu, 2016).
To implement the idea of underwater restaurant the individual is required to go through
research. This will help it in analyzing various benefits and drawbacks that might take place.
Also what steps its is required to take to make implement the idea. It is also required to analyze
what area will be suitable for its underwater restaurant that can be convenient for its customers to
reach. Also it it is required to develop target marketing strategy that what market it is to
concentrate more on. Over here underwater is new for every age people and hence is required to
take care of each and every age group person (Sigala, 2016). special schemes and offer for
family or honeymoon couple etc. things will helps in enhancing the level and brand image.
Along with the location it is to decide what size will it be able to maintain and how much cost it
will have to incur on it. individual After finalizing the location as will as size the next step
should be of completing various formalities such as to get underwater license etc. Also will have
to analyze what products or services will be requiring in the restaurant.
Step 2- Design
It will be a difficult task for the organization as underwater they will have to manage the
temperature etc things. Also its little bit riskier so it is required to take care of safety measures
that would not harm any human being or sea animals. After that is required to make cool and
clear ambiance for the people so that can enjoy underwater food while seeing fishes etc animals
underwater. Also it case of this type of restaurant the company is very much required to take care
of wall made up of glasses (Robinson and et.al., 2016). The glass wall should be strong and long
term thing as otherwise it can be damaged by any sea animal such as shark etc. That may further
lead to harm the employees as well as customers. It has to manage all things accordingly and
specially is required to take care of oxygen level because underwater has less oxygen. Without
oxygen the people may die and that will further lead towards negative publicity of the hotel. And
may result in decrease in market share as well as the brand value of the underwater resturant.
Step 3- Operation
Operation refers to various functional areas. Now for underwater restaurant the individual
will have to predetermine various aspects as well as areas where employees will be required.
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What qualification are need etc things are to be pre analyzed by the hotel before implementing
the project. The people who are comfortable and has no fear of water should be hired they should
definitely know swimming. That will help her/him from any kind of emergency. Also the hotel
will have to appoint some good scuba divers who can make customer do scuba diving if they are
interested to do (Richins and Hull, 2016). Also will have to take care of cultures of employee
while appointing them as in future that may result in conflicts. But on the other hand culture
diversity will help the customers in feeling comfortable. Another important step which the
company has to remember is of promotional activities. Promotions can be made from brochures
of tour operators or by giving commissions to tour operators so that they can get maximum
number of tourist. They can go for premium pricing as it will make customers feel that it is
exclusive and they should go to experience such things.
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CONCLUSION
Business travel, conference, exhibitions, visitors attraction as well and package holidays
are some of the points which depict the interrelationship between travel tourism and hospitality
industry. Increased globalization and pricing policies are some of the implications of integration
on Dorchester Collection. Integration places its effect on economies of scale, standardization,
improves quality etc of the hospitality industry. Integration also helps in controlling of sub
sector. At last the plan has bee for developing a underwater restaurant.

REFERENCES
Books and Journals
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development approaches for tourism and hospitality workforce planning. Journal of
Human Resources in Hospitality & Tourism. 15(4). pp.440-461.
Brandon-Jones, A. and et.al., 2016. Examining the characteristics and managerial challenges of
professional services: An empirical study of management consultancy in the travel,
tourism, and hospitality sector. Journal of Operations Management. 42. pp.9-24.
Dedeke, A. N., 2016. Travel web-site design: Information task-fit, service quality and purchase
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Edgell Sr, D. L., 2016. Managing sustainable tourism: a legacy for the future. Routledge.
Getz, D. and Page, S. J., 2016. Event studies: Theory, research and policy for planned events.
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Hassanli, N., Gross, M. J. and Brown, G., 2016. The emergence of home-based accommodations
in Iran: A study of self-organization. Tourism Management. 54. pp.284-295.
Horner, S. and Swarbrooke, J., 2016. Consumer behaviour in tourism. Routledge.
Horton-Tognazzini, L. and Williams, A., 2016. A Snapshot of MOOCs in Hospitality and
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Huan, T. C. T., 2016. Seeing further: Honoring John Urry's contributions to tourism and
hospitality research. Journal of Business Research. 69(3). pp.1228-1233.
Jones, P., Hillier, D. and Comfort, D., 2016. Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International Journal
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Laeis, G. C. M. and Lemke, S., 2016. Social entrepreneurship in tourism: applying sustainable
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Hospitality and Experience Quality on Behavioral Intention in Cultural Heritage
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Tourism and Hospitality Industry Management—A Case Study for Romania.
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Robinson, P. and et.al., 2016.Operations management in the travel industry. CABI.
Robinson, R. N., Ruhanen, L. and Breakey, N. M., 2016. Tourism and hospitality internships:
influences on student career aspirations. Current Issues in Tourism. 19(6). pp.513-527.
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Russo, A. P. and Quaglieri, A., 2016. 2 The Shifting Spatial Logic of Tourism in Networked
Hospitality. Reinventing the Local in Tourism: Producing, Consuming and Negotiating
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Consuming and Negotiating Place. Channel View Publications.
Schroeder, A. and Pennington-Gray, L., 2016. Moving the Travel Risk Literature Forward
Conceptually and Operationally.
Sigala, M., 2016. Learning with the market: a market approach and framework for developing
social entrepreneurship in tourism and hospitality.International Journal of Contemporary
Hospitality Management. 28(6).
Weaver, D. B. and Jin, X., 2016. Compassion as a neglected motivator for sustainable
tourism. Journal of Sustainable Tourism. 24(5). pp.657-672.
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Online
About Dorchester Collection Hotel. 2016. [Online] Availbale Through:
<https://www.dorchestercollection.com/>. [Accessed on 28th June 2016].
Hospitality in travel and tourism. 2016. [Online] Availbale Through:
<http://www.ocr.org.uk/images/74788-unit-10-hospitality-in-travel-and-tourism.pdf>.
[Accessed on 28th June 2016].
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