Hospitality-Tourism Industry Integration Strategy

This assignment delves into the synergy between the hospitality and tourism sectors, highlighting how partnerships and integrations strategy have proven beneficial in enhancing customer satisfaction and accomplishing business objectives. By analyzing relevant literature from sources such as Buhalis & Crotts (2013) and Litvin et al. (2008), students will explore real-world case studies to understand the implications of successful integration strategies for both industries.

Hospitality Provision in Travel & Tourism
Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Interrelationship between hospitality as well as wider travel industry.................................3
TASK 2 ...........................................................................................................................................5
2.1 Analysing the implication of integration to the hospitality industry.....................................5
2.2 Analysing the way integration have effect on hospitality business......................................7
TASK 3............................................................................................................................................7
3.1 Creating a rationale for selected project ...............................................................................7
3.2 Developing the rational for selected project ........................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality is considered to be as a fastest growing sectors which is also contributing a lot
towards economic development of nation. There are several services provided by hospitality
sector such as accommodation, transportation, food etc. Companies operating in tourism industry
workers together in order to provide customer with suitable facilities as well as services. As
compared to other industries, tourism sector is considered to be very much successful. Role of
companies operation in tourism sector is to help an industry in fostering growth and achieving
desired outcome. Hospitality is defined as the way in which the service provider takes care of
their customers. Hospitality is one of the most essential factor which differentiates between the
different service suppliers. There are very factors which influence the customers such as quality
of product or services , previous experience with company etc. It is required by an organisation
to consider all these factors when developing the plan fore delivering services to customers.
The purpose of the report is to identify the interrelationship hospitality and wider tourism
business. It also has focus on developing the understanding about effect of integration within
hospitality industry.
TASK 1
1.1 Interrelationship between hospitality as well as wider travel industry
There is direct as well as strong relationship between hospitality and tourism industry.
Customers are the most vital part of hospitality and tourism sector as both surround the
customers. Hospitality sector makes a very important part of tourism industry. Function of
hospitality industry is to provide several services to visitors or tourists such as food ,
accommodation, transportation. Tourism is considered to be as an activity by the tourists where
they engage in travelling to destinations where traveller want to experience recreational and
leisure activities as well as most of the time avails of accommodation, food and beverage. The
hospitality industry is the supplier of the services for tourism. Role of hospitality sector is to
provide a safe as well as enjoyable environment for tourist. Tourism industry has also played a
significant role in growth of hospitality sector. Function of hospitality industry is to conduct
several activities such as event planning, theme parks, transportation, and much more within the
tourism sector. In additional to this the several additional facilities such as entertainment like
Pub , bar etc. has supported tourism sector in attracting more number of visitors. It has also

provided companies operating in tourism sector like Pk f hotel an opportunity to increase sales
as well as profitability. The various services are also offered by tour and travel organisation
such as reasonable tour packages which is designed specially to target travellers those who
travel with low budget. For an instance, if the group of people wants to travel at different
geographical areas. For availing the services travellers will contact the particular tours and
travel organisation of UK , a company will serve visitors with the best package with all proper
facilities such as of accommodation, food, and all quality services. The various facilities such as
accommodation and food is provided with the assistance of hotels. As without the support of
hospitality sector, tour and travel companies will not be able to provide additional facilities to
customers. The tourism sector has tie up with hospitality sector in order to provide visitors with
suitable services. Role of hospitality sector is to provide continuous supply of product or
services. Overall it can be stated that tourism industry is made up of small sectors from
hospitality industry. Hotel as well as transportation companies which comes under hospitality
sector act as supplier for tourism sector. Function of hospitality sector as a part of tourism
industry is to make the customer feel comfortable and provide visitors with good experience
while their stay at particular destinations. It is the responsibility of hospitality sector is to
provide safe environment and healthy food to travellers. There is also a direct relationship
between tourism and hospitality sectors in terms of economic growth , development of business
etc. Function of the hotels or other companies in a hospitality sector is to promote the goods as
well as services provided by tour and travel organisation. This activity is conducted by firm in
hospitality sector in order to increase the demand for services. Accommodation is considered
to be as a primal component in package holidays. Tourists may opt for budget packages which
include basic 1 to 3 star accommodation, whilst others might select higher priced packages
offering 4 to 5 star accommodation. When selecting luxurious accommodation, guests may
spend a good proportion of their time at the hotel or resort to make full use of the amenities
which are being offered. All these facilities are provided the hospitality sector in order to
inspire people to make frequent visit and motivates tourist to stay for long time at particular
destinations.
In context of Hotel Pk F which is acting as a tourism & leisure
consulting. The objective of business unit is to provide good advice to tour and travel
companies in terms of improving the quality of services. It has allowed also firm to except

travelling facilities to provide extra services to customers. The support from hotel , tour and
travel company has able to increase its sales and profitability. In addition to this, PKF hotel
expert has planned to firm partnership with tour operators organisations. As this strategy will
also help hotel in improving their financial performance and expanding the business. PKF hotel
provides catering facilities to the clients by taking contracts and provide quality food to the
visitors. Business Entity has form the partnership with travel companies with the purpose of
increase customer base. This partnership between hospitality and tourism has allowed both the
sector to provide high level of satisfaction to visitors. It has allowed organisation to influence
travellers to make frequent visits by providing them quality services at reasonable price.
Resources which are required for delivering services are provided by the hospitality industry to
tourism sector. Hospitality industry also supports travel companies in smooth running of their
business.
TASK 2
2.1 Analysing the implication of integration to the hospitality industry
The concept of integration has been continued since a long time. Integration is each and
every industry including hospitality sector. This strategy is adopted by companies for reaching to
the economies of scale. Integration also assist business entity in reducing the cost of production.
There are several types of integration such as vertical as well as horizontal integration. Vertical
integration takes place when business entities purchase another organisation in chain of
distribution (Davidson, McPhail and Barry, 2011)
Vertical integration :The vertical integrations' strategy has been adopted by PKF hotel for
minimising the operating cost and increasing the profitability. For instance, PKF hotel have
complete control over the distribution chain. Business entity placed economies of scale at the
top priority. Management team in an enterprise have focus on providing the training top its
workers and making investment on their development of staff members.
Horizontal integration: In this strategy two different industries come together to form a new big
companies. This strategy is adopted by an organisation for gaining the several benefits including
economies of scale. In context of PKF hotel , firm has form the partnership with tour and tour
organisation with the intention to increase customer base.
Implication of integration in hospitality sector

In present scenario, there are many companies which has failed to sustain their business
in hospitality industry due to increase in intensity of competition as well as dynamic business
environment. But the unique quality of hospitality sector is that in this industry all the
organisation supports each other in terms of growth and maintaining the suitability. In case of the
small organisations which fails to sustain such companies are been acquired by giants
organisations. There has been man\y mergers have taken place in hospitality industry. For
instance, Starwood Hotels & Resorts by Marriot
International, valued at 12,2 billion US$, is the largest transaction of its kind in the hotel
industry since 2007 when private equity firm Blackstone acquired Hilton for 26 Billion US$.
In 2015, France’s Accor Hotels bought the Toronto-based parent company of the luxury
Fairmont, Raffles and Swiss hotel brands for $2.7 billion; Intercontinental Hotels Group
acquired Kimpton Hotels and Restaurants for $430 million; Marriott acquired Delta Hotels
& Resorts for $135 million. These mergers have been taken place in hotel industry for supporting
the small organisations in maintaining the suitability and assist such firm in development
(Chathoth and Olsen, 2007)
The purpose of integration is to support fulfil the demand of wide range of customers and
provide them with high level of satisfaction. Integration concept has been evolved and accepted
by many of the companies in hospitality industry considering the in demand of products as well
as services. Integration strategy has helped the PKF hotel and many other organisation in
hospitality industry in delivering the quick and quality services to customers. Integration has
great importance in hospitality industry. Effective is needed for delivering best services to
customers. PKF hotel and other companies has merged with enterprises in tourism sector with
the purpose of providing high level of satisfaction to visitors. Hotel chain such as PKF has
utilised the integration strategy in which firm has planned to outsource booking facility to some
outside agency to make customer base increased. By adopting this strategy business entity has
able to fulfil the queries of customer in systematic manner. Integration strategy has provided
company a chance to increase their working efficiency, expand their business operations. It has
allowed firm to provide additional facilities or services to customers. Integration strategy also
supports an organisation is resolving several business related issues. Vertical integration assists
in managing the business in systematic manner. Tourism companies provide several facilities to
customers by entering into a contract with PKF hotel which has enabled business entity to

deliver quality food to its clients. Integration strategy utilised by a company has provided firm a
chance to deliver services at reasonable price. It has also allowed an organisation to access the
resources which are required for providing normal or basis facilities to visors (Campos-Soria,
Marchante-Mera and Ropero-García, 2011) For instance, France’s Accor Hotels bought the
Toronto-based parent company of the luxury
Fairmont which has enabled business entity to provide luxury facilities to clients. Integration
also assist tourism as well as hospitality sector to work together by sharing their customers and
resources. PKF hotel manages their business resources through horizontal as well as vertical
integration. The implication can be analysed in hospitality sector as it assist an organisation in
bringing improvement in businesses and satisfying the needs as well as demands of customers
(Espino-Rodríguez and Taylor, 2006)
2.2 Analysing the way integration have effect on hospitality business
Integration supports business entities in increasing their core competencies and also
competitive strength. It allows firm to gain competitive advantage in the market. Integration
strategy has helped business entity in ensuring the effective as well as efficient utilisation of
resources.
PKF hotel is a well known market leader in the field of hotel, tourism . This is the first
company who offering specialised consulting services for the hospitality industry. The main aim
of hospitality industry is to build strong and fruitful relationships with the customers. And to
promote the services and to promote the sale of goods provide by this organisation . If any
company used to integrate that means they want to expand their markets to get global exposure.
There are two types of integration horizontal and vertical.
Horizontal integration:- It means company can go through acquisitions and mergers to expand
their business horizontally (Baraban and Durocher,2010)
Vertical integration :- Different members of supply chain in vertically are responsible for
producing different products.
In the case of PKF hotel has adopted integration for complete diversification of the
products and services . Any act of helping or any service of being hospitable can be stated as
hospitality. In the travel and tourism industry where hotels provide extra services like booking a
cab , flights tickets etc. All comes under hospitality. Using this integration any organization can

expand their business. The main aim of hospitality is that tourist must be comfortable and are
enjoying their stay (Buhalis and Crotts,2013)
It is important that any services which is provided by company should be same at all
places, anything less would be not acceptable and it will be threat for its reputation. If integration
has done between two big organizations it will affect to the society and for small organization .
The main importance of integration is to provide competitive advantage. Merging of two
companies will help a lot in satisfying and attracting more customers. Monopoly is market where
only one seller and many buyer so this integration of two organization or a company can created
by providing the best which is not available easily. After doing integration company having more
dominant in nature and its reduce the choices of customer (Alonso and O’Neill, 2010)
Integration will also help in diversifying the business in other countries.
Globalization has an effect on this country. Tourism is a very revenue generating for any
country. So this has been encouraged the company to think worldwide and to expand their
business . The most important impact of integration would be the economies of scale can be
achieved . This also reduce the operating cost and the profit should be maximised. By following
any integration method the cost can be reduced which helps in increasing the profit. Integration
will also help in diversifying the business in other countries . PKF hotel is one of the large
industry of tours and travels and hospitality . After integration the company should diversified
their business globally . PKF hotel main aim is to provide good services to their customer and to
earn more profit. In integration company can expand their business globally and earn more
reputation and to create more and more customer . So integration has a good effect hospitality
business (Litvin,Goldsmith and Pan, 2008)
TASK 3
3.1 Creating a rationale for selected project
PKF hotel is planning to enter into the food and beverages business .As it has been
analysed by business entity that this field has wide scope of growth and several benefits can be
gained. Management team in an enterprise has realised that increasing in level of income by
people and economic development has inspired people to live healthy life and spend more on
foods and beverage. Top level managers are planning to establish certain standards for improving
the quality of food and services. As this strategy will support business entity in providing high

level of satisfaction to customers and influencing people to buy products or services. The
standards are being set by an enterprise with the purpose of fulfilling the needs as well as
requirements of customers seeking for different and unique tastes in food products. In present
era, customers in the market are mainly conscious about the quality of good rather than price.
Inauguration function will be organised at place near shopping mall .This location has been
selected as upper-class people and visitors from different countries come at that place for
spending leisure as well as quality time. social media sites and new promotional technique will
be used by marketing team in PKF hotel for promoting the products or services as well as
generating brand awareness. The marketing manager in an enterprise to reach more customers is
simple to apply as restaurant is making use of sponsorship programs and offering discount on
goods (Crotts, Mason and Davis, 2009)
3.2 Developing the rational for selected project
Product service concept: The PKF hotel has adopted the concept of provide customer a
comfort as well as quality services during their stay in hotel. Purpose an organisation is to
provide high level of satisfaction to client and allow customers to have good experience.
Business entity is mainly concerned with providing facilities to customers so that their stay could
be pleasurable. Management team in an enterprise has planned to make separate department who
will responsible for handling the queries of customers. Role of special department is to gain
feedback or advice from client. As this will assist business entity in recognising the area of
improvement and analysing the way change can be bought in particular field.
Target customers:By analysing the market as well as economic situations , PKF hotel has
planned to target people belonging to the high income level group. As by targeting such people
business entity will be able to increase its profit margins. Management team in an enterprise has
also planned to target youth and also working men and women. As it will be easy for firm to
attract these people, as they are working and these people prefers to purchase food from hotels
because of lack of time for cooking.
Location: The business will be located at the central are in London and also near shopping mall.
This specific location has been selected as it will provide customer an ease in availing the
products or services offered by an organisation. As company will be located at the centre of the

city, all the resources which are required for smooth functioning of business can be easily
accessed from the market.
Funding :management team in PKF hotel has planned to make investment mainly in two fields.
These are training to employees and on the infrastructure. As establishing a hotel is very big
project , the resources are required to be allocated efficiently as well as effectively.
Licensing:All the permission related to the business operation will be taken by the specific legal
authority.
Design of the hotel: interior management company has been hired for decorating the hotel and
designing the interior. Ambience of the hotel will be luxurious , management team in an
enterprise is planning to give the royal look to hotel. As this will help business entity in attracting
more number of customers.
Culture: Managers in hotel also planning to develop atmosphere like a palace. As by creating
this type of environment , company will be able to provide welcoming as well as good
experience to visitors. Management team in an organisation is also planning to create welcoming
as well as approachable atmosphere for employees as well. An enterprise will recruit maximum
number of workers so that amenities provided would have special attendants to make sure that all
the equipment are functioning properly and also they will help the guests to get friendly with the
equipment. Company will also had made investment and has planned to implement special
system, which will be used for keeping the track record of guests in the hotel,.This system will
help business entity in eliminating the overbooking.
The unique promotional strategy has been used by firm. Marketing plan created by
marketing manager in an enterprise consists of all the important elements of marketing mix such
as price, product, place , promotion , physical evidence and people. Price of the products as well
as services will be set according the standards establish by management team in an organisation.
Stage 3 operations:
Operating model: It is considered to be as the important part of plan. There are the following
factors which are required to be consider that are required to be follow in terms of providing
suitable services to customers. The company has planned that there will no compromise will be
done in context of quality of goods as well as services.
Staffing and recruitment: All the employees in an enterprise would be recruited on the basis of
their skills , competencies , knowledge and educational qualification. A special team will be

hired by a firm in order to provide training to staff members. Management team in PKF hotel
has planned to recruit both full as part-time employees so that guests could be handled easily
during the off-seasons and the peak time seasons. Employees with training in respect of all
culture. Business entity has conducted the analysis in order to analyse the procedure off human
resource management practices and considering the legislation has designed the several policies
for employees (Robson and McCartan, 2016)
CONCLUSION
It has been concluded from the report that there has been direct as well as strong
relationship between hospitality and tourism industry. Assignment has also concluded that
hospitality industry in United Kingdom is contributing a lot towards economic development of
nation. This sector has also provided employment opportunity to people in the country. Project
has also explained the relationship between tourism and hospitality sector. Study has
successfully demonstrated the way both hospitality and tourism sector is helping each other in
creasing customer base , achieving success and fostering growth. It has also been concluded
from the assignment that partnership between two industries assist companies in providing high
level of satisfaction to customers and also in accomplishing desired business objectives.
Integrations strategy has great importance in hospitality as well as tourism industry.

REFERENCES
Books and Journal:
Alonso, A.D. and O’Neill, M.A., 2010. Consumers’ ideal eating out experience as it refers to
restaurant style: A case study. Journal of Retail & Leisure Property. 9(4). pp.263-276.
Baraban, R.S. and Durocher, J.F., 2010. Successful restaurant design. John Wiley & Sons.
Campos-Soria, J.A., Marchante-Mera, A. and Ropero-García, M.A., 2011. Patterns of
occupational segregation by gender in the hospitality industry.International Journal of
Hospitality Management.30(1). pp.91-102.
CG 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.
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.
International Journal of Hospitality Management. 26(3). pp.502-516.
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.
Buhalis, D., and Crotts, J. ,2013.Global alliances in tourism and hospitality management.
Routledge.
Litvin, S. W., Goldsmith, R. E., & Pan, B. (2008). Electronic word-of-mouth in hospitality and
tourism management.Tourism management.29(3). 458-468
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
Robson, C. and McCartan, K., 2016. Real world research. John Wiley & Sons