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Hospitality Provision in Travel & Tourism: Interrelationships, Integration, and Business Plan Development

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Added on 2024/06/28

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This study explores the interrelationship between the hospitality and travel & tourism industries, analyzing the implications of integration for hospitality businesses. It examines the impact of integration on the hospitality industry, using examples like Marriott International and Intercontinental Hotels Group. The study then develops a rationale for a restaurant industry in Oxford, justifying decisions linked to the target market. Finally, it presents a comprehensive business plan for a fast-food restaurant in Oxford, outlining its development, design, and operational strategies.

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Table of Contents
INTRODUCTION........................................................................................................................... 4
TASK 1............................................................................................................................................ 5
1.1 DISCUSSION OF THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND
WIDER TRAVEL AND TOURISM BUSINESSES......................................................................5
TASK 2.......................................................................................................................................... 10
2.1 ANALYSING THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY
INDUSTRY................................................................................................................................... 10
2.2 DISCUSSION ABOUT HOW INTEGRATION HAS AFFECTED THE HOSPITALITY
BUSINESS.................................................................................................................................... 12
TASK 3.......................................................................................................................................... 14
3.1 DEVELOPMENT OF A RATIONALE FOR A RESTAURANT INDUSTRY BY
CLEARLY JUSTIFYING DECISIONS LINKED TO TARGET MARKET..............................14
3.2 DEVELOPMENT OF A BUSINESS PLAN..........................................................................16
CONCLUSION..............................................................................................................................21
REFERENCES.............................................................................................................................. 22
2

List of Figures
Figure 1: Sectors of the Hospitality Industry...................................................................................6
Figure 2: Travel and Tourism Sector...............................................................................................7
Figure 3: Interrelationship between Hospitality and Travel and Tourism Sector...........................8
Figure 4: Integration in Hospitality Industry.................................................................................10
Figure 5: Oxford............................................................................................................................ 14
Figure 6: Business plan for fast-food restaurant............................................................................15
Figure 7: Design of a fast-food restaurant.....................................................................................17
Figure 8: Operations at fast-food chain......................................................................................... 19
3

INTRODUCTION
The hospitality industry has gained importance in present scenario by fulfilling the requirements
of those people who frequently love to travel either for leisure or business purposes. In the given
study, PKF hotelexperts has been taken into consideration as it provides a wide range of services
to its customers. The study would discuss the interrelationship between hospitality and travel and
tourism sector within the given scenario. The next step would be to understand the impact of
integration and how it affects the hospitality business of a given enterprise. At last, there would
be a development of a business plan which would illustrate all important information about the
organisational chart of PKF hotelexpert.
4

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TASK 1
1.1 DISCUSSION OF THE INTERRELATIONSHIPS BETWEEN
HOSPITALITY AND WIDER TRAVEL AND TOURISM
BUSINESSES
With an increase in the impact of globalisation, the hospitality sector has gained significant
prominence whole over the world. Also known by the name HOSPEX (hospitality exchange), it
has been acting like a social networking site which has been centrally organised with technology
and offers a wide variety of services to satisfy the needs of the people (Barrows, 2011). It also
provides security to the people so that they would be able to enjoy their vacation freely and
without any tensions with their friends as well as their family members.
Hospitality Industry
It could be defined as a broad category of fields within the given service industry and includes in
it lodging, transportation, theme park, food and beverages, tourism and many more so as to
provide efficient services to the people and satisfy their needs and aspiration.
Composition of Hospitality Industry
The hospitality industry includes not only hotels such as PKF hotel, but it includes a wide variety
of sectors which are an equal part of the given industry. These sectors are shown below in the
given diagram:
5

Figure 1: Sectors of the Hospitality Industry
Source: [Barrows, et al. 2012]
Hospitality Sector comprises three important sectors which are explained below:
Food and Beverage Industry
This is the largest segment in the food sector of the hospitality industry and includes restaurants,
eateries, fast-food centres and other catering services. When it becomes a part of the hotel, it
would enhance the experience of the people by offering good customer services in the form of
excellent food and beverages (Walker, 2012). For PKF, this sector has been an integral part of its
service and includes a fast-food chain in all its hotels so as to provide good quality food and
satisfy the needs of the people in an efficient manner.
Accommodation
It is one of the broad segments of the hospitality industry and includes breakfast and bed
facilities provided within the hotel premises. Its foundation is based on providing attentive
customer service with comfort and great efficacy. PKF provides good hotel services with a clean
and tidy room, comfortable cushion, and all the basic amenities so as to satisfy the needs and
requirements of the people in an efficient way.
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Figure 2: Travel and Tourism Sector
Source: [Mahrous and Hassan, 2017]
Travel and Tourism Sector
It is an important part of the hospitality industry. It is considered as the money making machine
because it helps in the generation of the revenue and thus helps in the economic growth of the
given place. Furthermore, it also generates employment for a large number of people who makes
this industry as their source of income (Cook, et al. 2013). One such example is the availability
of 4-star hotels with 200 beds which would facilitate different ranges of services such as
refurbishment program, eatery demand, local laundry, gym facilities and swimming pool and
many more.
Benefits for tourism industry due to the hospitality industry
The tourism industry is greatly benefitted by the hospitality industry as it plays an important role
in its development and helps in providing greater satisfaction to the customers. When a tour
package is being prepared by any tour operator, the hospitality industry provides helping hand by
playing a prominent role in attracting the customers towards tourist destination. This industry
helps the tourism-related organisation by making available to them basic services which must be
provided to the customers such as food, accommodation, entertainment and so on (Sheehan, et al.
2018). Thus, hospitality industry helps in structuring the basic guidelines for the proper
development of a tourism sector at a given tourist destination.
There has been a strong relationship found between travel and tourism and hospitality industry.
When there has been an increase in either the spending power of people or GDP of a country,
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there would be a tremendous increase in utilisation of the services provided by the given industry
(Mohseni, et al. 2018). Furthermore, increase in income level among the people results in
spending more on the vacation and leisure time which in turn proves to be beneficial for the
given industry.
An interrelationship between hospitality and travel and tourism industry
Figure 3: Interrelationship between Hospitality and Travel and Tourism Sector
Source: [Yüksel, 2017]
There is a significant interdependency between travel and tourism and hospitality industries
which could be explained in association with:
 Increase in income among the customers so as to purchase particular services without any
hesitation
 Increase in sales
 Increase in range of customers for the hospitality industry
 High economic growth in terms of infrastructure, tourism facilities etc.
 Increase in the destination range of tourism
 Increase in tourism-related activities (Nieves and Quintana, 2018)
 High development occurring in the hospitality industry in relation to the tourism
destination
Furthermore it has also been found that with the increase in sales and revenue in the tourism
industry, the hospitality industry would also be equally benefitted from it. Besides if any
enterprise associated with hospitality industry with strong brand image such as PKF opens one of
its hotel chains at any tourist location, then the tourists would stay at that hotel and would visit
8

the given tourist destination which in turn would help in its significant growth and development
(Cook, et al. 2013). In addition to this, there is a widespread support of marketing activities
employed by both the sectors worldwide such as theme parks, visitor’s attractions and exhibition
centres which proves to be beneficial to both the given sectors.
Thus, it could be said that interdependency among the given sector has helped both of them to
achieve success and generate profit for the given enterprises.
9

TASK 2
Introduction
Working as a Junior Consultant in PKF Hotelexperts, the study would be performed by the
consultant to analyse the impact of integration in the given industry so as to get a clear picture
about the impact whether in favour or against the industry. Furthermore, there would be a
detailed discussion about how integration has affected the working and operation of the
hospitality industry. The consultant should also explain these points by taking the reference of
Marriot International, Intercontinental Hotels Group etc. into consideration.
2.1 ANALYSING THE IMPLICATIONS OF INTEGRATION TO
THE HOSPITALITY INDUSTRY
Figure 4: Integration in Hospitality Industry
Source: [Guchait, et al. 2018]
In the present turbulent environment, the industry could not accolade them on past success. It has
to utilise integration strategies to stay relevant in the present business environment. Not only it
would help in saving surplus amount, but it would also help in decreasing the gap between the
10

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industry and tourist lovers and thus would prove to be beneficial for both of them. Integration
could be defined as a technique where the arrangement between two services is linked together
to reap mutual benefits. One such example is the expansion of the renowned hotel chain to an
unknown tourist destination. This would not only provide better facilities to the customers but
would also help in planned development of the given tourist destination (Quintana-García, et al.
2018). It would prove to be profitable for enterprises associated with hospitality, tourism, local
people and tourists. Besides, if two hotel chains such as PKF and Marriott Hotel Group integrate
their services with the requirements of the customers, it would increase their profit to greater
heights. There are two types of integration which are explained below:
Vertical Integration
A type of integration when two enterprises of different industries merge together, they would
experience few losses and would be able to manage their operational cost. In addition to this,
they would see a surge in growth of their business across the globe (Peters and Kallmuenzer,
2018). For example, when Marriott International acquires Delta Hotels and resorts, there was a
decrease in competition among them and both sectors saw a remarkable generation of the
revenue.
Horizontal Integration
In this type of integration when there is an amalgamation between the two sectors (tour operators
in the given study); there would be an expansion of the business encompassing the geographical
location and results in a proper representation of all the regions (Jung and Yoon, 2018). For
example, when Intercontinental Group acquires Kimpton Hotels and Restaurants for $430
million, the Group was able to provide its services to those areas which were out of reach for
them and thus helped it to establish as branded hospitality enterprises across the world.
11

2.2 DISCUSSION ABOUT HOW INTEGRATION HAS
AFFECTED THE HOSPITALITY BUSINESS
There has been a significant impact on the hospitality sector due to integration. The major aim of
integration in a hospitality industry is to increase the corporate relationship between different
business ventures. Utilising it effectively would results in independent operation of the business
as per the requirements of the people in an effective manner (Guchait, et al. 2018). It helped the
hospitality sector to provide a dynamic environment where it would be able to perform an
important function and be able to provide a good structure for its proper development. The
impact on the hospitality industry could be explained in the following ways:
 It helps in increasing the quality of services provided to the customers to increase their
satisfaction level
 It helps in significant reduction in the operational cost of any given hospitality enterprise
 It provides proper standardisation of the organisation
 It helps in the identification of issues associated with the given industry and solves them
by finding a solution in a quick manner
To analyse the positive impact of integration in the hospitality sector, an example of the Delta
Hotel is taken into consideration. It is a 4-star hotel owned presently by Marriott International.
One such issue which was affecting its efficiency was the transaction which was occurring
differently for different services which resulted in increased operational cost (Sun and Lee,
2018). To remove this issue, Marriot hotel merges Delta hotel completely which not only
resulted in reduced operational cost but also allowed the company to increase its base as well as
profit share which was evident with its total generation of revenue in the form of $2.7 billion.
Conclusion
The given case study has presented how integration has proved its importance in the hospitality
industry and how it has been helping the given industry to remain in the market in the present
scenario. Besides, there had been a detailed description of how integration has affected the given
industry and concludes that the integration has positively impacted the hospitality industry by
increasing its growth and profit all over the world. At last, integration types such as vertical and
horizontal integration were explored to assess their benefits in the hospitality sector and it was
12

found that they have been able to serve their purpose. Thus the study proved that there had been
the significant importance of the horizontal and vertical integration of the hospitality
organisations and that too in an effective manner.
13

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TASK 3
3.1 DEVELOPMENT OF A RATIONALE FOR A RESTAURANT
INDUSTRY BY CLEARLY JUSTIFYING DECISIONS LINKED
TO TARGET MARKET
Working as a junior consultant, the development of a rationale for the given industry could be
better understood using one of the sectors of the hospitality industry such as restaurant industry
which includes fast-food chains, cafes, dining and coffee shops (Janssen, et al. 2018). It is the
largest and major contributor to the hospitality industry which targets most of the youngsters
which come in the age group of 18 to 25 years and helps the industry to accomplish its
objectives.
Rationale
Figure 5: Oxford
Source: [Eckert and Vojnovic, 2017]
The rationale of the study is taking fast-food industry in Oxford into the consideration. The
Oxford city has been chosen because it is an educational hub and there has been large number of
presence of youngsters. Besides, it is also a tourist place which is frequently visited by travel
loving youngsters. PKF would emphasis more on the snacked type of fast-foods in Oxford which
are in great demand among the youngsters. If these food items are provided to them at the
affordable price, it would help the industry to achieve its objectives and generate more revenue.
The main goal of opening a fast-food chain in Oxford is to develop it into a premium brand so as
14

to acquire the business of the food market (Kasiri, et al. 2017). This could be achieved by
preparing a good plan and utilising the services of effective strategies so as to get ahead of the
competitors present in this industry. Before devising a proper plan, there would be some
requirements for identifying the objectives of a fast-food restaurant; which are explained as
follows:
 Firmly establishing the fast-food chain and increase the food market share
 Create a fusion cuisine and make it a destination product across all the food chain
(Jauhari and Bharwani, 2017)
 Enhancement in the food outlets around Oxford in the coming years so as to reach a large
number of people
These requirements could be achieved by:
 By conducting a good initial capital investment
 Using driven and value-based approach to attract the customers (Chen, et al. 2017)
 Using creativity and innovation in entertaining the consumers in an efficient way
Thus in order to fulfil the above objectives, a business plan would be developed and so that the
organisation in the given industry would be able to accomplish its goals.
Figure 6: Business plan for fast-food restaurant
Source: [Kasiri, et al. 2017]
15

3.2 DEVELOPMENT OF A BUSINESS PLAN
PKF Hotelexperts has its own fast-food outlets which they are trying to expand so as to reach a
wide number of customers. It has started to manufacture different types of French-fries and is
trying to make it as a premium brand so that people would be able to get the taste of different
types of these food items and increase the sales of the food outlets of PKF. Furthermore, this
concept of introducing different variations of fries would support the ambience of fun, energetic
and youthful lifestyle of the youngsters which are the main target of the company (Wellton, et al.
2017). Thus, in order to achieve success in the given sector in the fast food industry, a proper
plan has to be developed by PKF to open a restaurant inn Oxford which could be explained by
following various steps which are presented below:
Stage 1: Development
Idea and Planning
The planning for the fast-food chain by PKF at Oxford would be to primarily sell the variants of
French fries alongside with other products such as cold-drinks and sandwiches and would be
presented to the customers in an efficient manner. Furthermore, it could also serve various
beverages such as tea and coffee in different flavours as per the needs of the consumers.
Market Research
A market research would be conducted by preparing a questionnaire which would include
questions related to the food menu, the choices of the customers regarding preference to the food
product and so on (Chen, et al. 2017). This step would help the company to estimate accurately
the expectations of the customers regarding their choice and would include those food items also
which are in great demand among the customers.
Target Market
The company has been targeting mostly youngsters who come in the age group from 18 to 25
years. Furthermore, it has also focused on those youngsters who like to travel the most and loves
trying new cuisines or fusion food products.
16

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Location
As it targets youngsters, it would open its food outlets around educational premises as well as
shopping malls in Oxford. Furthermore, there is a growing demand among travel loving
youngsters to get good quality food at some tourist destinations around Oxford (Davis, et al.
2018). This aspect would be kept in the mind of the company and thus it would open its outlets
in and near tourist destinations also.
Size
The fast-food restaurant would be developed either as an open outlet where people could enjoy
their snacks or in a big room where at least fifty people would be able to enjoy their food. The
former outlet would be developed near tourist destination and the latter would be developed in
shopping malls (Eckert and Vojnovic, 2017).
Funding
The funding for the fast food restaurant would be partly done by taking loans from the bank and
partly done by investors themselves.
Licensing
The licence would be obtained in a proper legal manner from the ministry of food and product
and all the required formalities would be fulfilled before opening up a fast food restaurant.
Stage 2: Design
Figure 7: Design of a fast-food restaurant
Source: [Viglia, et al. 2018]
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Ambience and Culture
There would be a positive environment in the food outlet of PKF which would assure people to
be relaxed and enjoy their food with great satisfaction. Furthermore, the culture of the restaurant
would be very cordial one where the customers would be treated in a friendly manner by the staff
present there to help them.
Brand Image
The brand image of the company would get enhanced when there would be satisfaction among
the customers regarding the food qualities and services available to them. Therefore, the
restaurant would be located in areas such as shopping malls and near educational institutes so as
to serve its target customers in the form of youngsters in an efficient way (Wellton, et al. 2017).
Interior and Exterior
The interior of the food outlet would be decorated with paintings depicting the pictures of
customers who are shown with a smile indicating the satisfaction they have derived from the
services provided by the restaurant. Furthermore, there would be pictures of food menus
currently provided by the restaurant and upcoming menus in an attractive format. The tables and
chairs would be designed in the form of antique furniture which would come with a neat and
comfortable cushion attached to it (Altin, et al. 2018). The exterior of the outlet would be
designed on themes based on food product each day and would be decorated with attractive
flowering plants.
Sustainability
There would be a ban on the utilisation of plastics and all the food items would be provided to
the customers either in paper bags or recycled bags which would allow the restaurant to maintain
its sustainability.
Customer with Individual needs
The individual needs of the customers would be fulfilled by utilising the efficient operational and
pricing strategies.
Link to the target market
In order to attract the youngsters, which are the main target; the company would distribute
pamphlets to the students and working youngsters at the campus as well as malls as a part of its
18

marketing strategy (Viglia, et al. 2018). Besides, it would also promote its product on social
media and would illustrate the food products available at its food outlets.
Stage 3: Operations
Figure 8: Operations at fast-food chain
Source: [Peters and Kallmuenzer, 2018]
Staffing by Functional areas
A small team of staffs would be selected who are creative and innovative in nature and are able
to interact with the customers in a friendly manner. Furthermore, there would be a routine
inspection to evaluate whether the staffs maintain proper cleanliness and hygiene in the
restaurant so that the customers would not face any issues related to the quality of food product
as well as services provided to them in an efficient manner (Abdullah, et al. 2017).
Qualification of Specialist with Recruitment policies
The chef for the restaurant would be selected who holds a degree in hotel management and has at
least two years of experience working in a reputed restaurant.
Staffing issues related to season
The staff would face additional pressure in providing good services in the restaurant in the
following circumstances:
 Summer vacations when most of the youngsters like to visit food outlets every time
during a day (Alegre and Berbegal-Mirabent, 2018)
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 Peak season where there would be a good outflow of tourists at the designated site where
there is a food outlet
Pricing Strategy
The company would use in its outlet bundle pricing strategy where the customers would avail the
food items which they would relish in a package so that they would be able to get it at a reduced
price and thus would fill them with immense satisfaction.
Cultural diversity and ways to deal with conflicts
As youngsters come with a different cultural background, various conflicts related to food items
would arouse (Eckert and Vojnovic, 2017). These cultural issues could be resolved by utilising
conflict resolution measures such as a separate table for vegetarian and non-vegetarian people so
that there would not be any conflict regarding the consumption of food.
Compliance with Legislation
Rules and regulation along with the promotional activities would be effectively promoted in the
organisation.
20

CONCLUSION
The given study had been commenced by efficiently defining the scope of the two important
industries and how they are benefitted by being interdependent on each other. Furthermore, there
had been an effective measurement of different operational activities within the tourism business
and thus indicated their significance to the given industry. A strong relationship between the
travel and tourism and hospitality industry was also confirmed in the study. Besides, the
integration method revealed that it had a positive impact on the given industry. At last, a business
plan was formulated which defined all the procedures followed by the enterprise in an efficient
so as to successfully open the fast food outlet and be able to achieve their objectives effectively.
21

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Alegre, I. and Berbegal-Mirabent, J., 2018. Gourmet Products from Food Waste: Rethinking
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in the hospitality and tourism industry. International Journal of Contemporary Hospitality
Management, 29(6), pp.1522-1540.
Cook, R., Hsu, C. & Marqua, J., 2013. Tourism: The Business of Hospitality and Travel.
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behavior for residents living in lower eastside Detroit neighborhoods. Applied Geography, 89,
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hospitality industry. International Journal of Hospitality & Tourism Administration, pp.1-28.
22

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Janssen, H.G., Davies, I.G., Richardson, L.D. and Stevenson, L., 2018. Determinants of
takeaway and fast food consumption: a narrative review. Nutrition research reviews, 31(1),
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