Hospitality Provision in Travel & Tourism Sector: A Comprehensive Analysis

This report delves into the intricate relationship between the hospitality industry and the broader travel and tourism sector. It explores the key dimensions of hospitality provisions, including accommodation, food services, and entertainment, and examines the impact of integration strategies on hospitality businesses. The report also presents a detailed development plan for a fast-food chain, outlining its concept, market research, target market, location, scale, funding, products, and licensing. This comprehensive analysis provides valuable insights into the dynamics of the hospitality industry and its crucial role in the global travel and tourism landscape.

HOSPITALITY PROVISION IN TRAVEL &
TOURISM SECTOR
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2

INTRODUCTION
The hospitality industry is one of the fastest growing and lucrative industries. It includes
event planning, theme parks, lodging, cruise line, theme park, transportation and additional
field within the tourism industry. A hospitality unit such as hotel, restaurant or an
amusement park consists of various groups such as direct operations and facility
management. It is playing an important role in the travel and tourism sectors which reflect
significantly on the economy of a nation (Walker, 2016). This report demonstrates the
different dimensions of hospitality provisions in travel and tourism industry. It also explains
the influence of integration within the hospitality industry. The plan for the development of
hospitality business is also covered in this work.
This report is written from the perspective of the junior consultant in PKF hotel experts. PKF
hotel experts is the UK based leading organization in the field of hotel, tourism and leisure
consulting.
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TASK1
1.1 INTERRELATIONSHIP BETWEEN HOSPITALITY AND WIDER TRAVEL
AND TOURISM BUSINESS
The hospitality industry is a broad
category of different areas within the
service industry that covers
transportation, event planning, theme
parks, lodging and other such fields in
travel and tourism industry. The
hospitality sector is a fastest growing
industry that relies on the availability of
leisure time and disposable income
(Dopson, 2016).
The hospitality industry comprises of
different business such as hotels,
restaurants, pubs and bars, nightclub,
events, catering etc. The hotels provide
food as well as accommodation facilities
to the guest. It takes care of the basic and
regular needs of the customers. There is a
different kind of the hotels such as budget
hotels and 1 to 5 stars hotels which
provides service to customers according
to their need and budget. The restaurant
is also the important business unit which
belongs to the hospitality industry. It also
includes the cafes which provide fast
food, beverages, fine dining etc. Pubs,
bars and nightclub also attract a large
number of the people and are the
important source of entertainment. These
businesses depend significantly on the
number of the domestic, inbound and
outbound tourism (Everett and Slocum,
2013).
Figure1: Relationship between tourism
and hospitality
[Source: Cooper, 2013]
The travel and tourism are one of the
most profitable and growing sectors. It
includes business offering different travel
services, visitors attractions
accommodation service and passenger
transport. The travel services include
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retail services, ticketing agencies, tour
operators and others. Air, water,
automobile, trains and tramps fall under
the passenger transport which a help a
person in meeting to need and demand of
the customers. It also includes different
accommodation services which include
motels, hotels, guest house, caravan
parks. The visitor attraction is the crucial
element that includes theme parks,
ancient monuments, activity manners,
stately homers etc (Cooper, 2013).
All the different elements of the
hospitality industry are interrelating with
travel and tourism sector. The hospitality
sector plays a significant role in the travel
and tourism sector. Hospitality industry
underpins various types of travel and
tourism such as business travel, aviation,
conference and exhibitions, visitor
attractions and theme parks (Veal, 2017).
Business travel contributes significantly to
the travel and tourism industry. Business
travel is a travelling done to for work or
business purpose. There may be different
objectives of eh business travel such as
visiting customers or suppliers, visiting
project site, building the new partnership,
meeting at other company locations and
identifying the trends and new market
(Swarbrooke and Horner, 2012). A person
who travels for business purpose needs
the bass facilities like food and shelter and
it is the role of the hospitality industry to
provide the accommodation, food and
other facilities which can meet the need
and demand of the tourist. Hospitality
sector also supports the aviation industry
by providing the required facilities to the
people. It also provides required place
and facilities to the people for conference
and exhibitions. There are many hotels
which provide all the required facilities to
the people for the conference and
exhibitions of the painting or any other
arts. Visitor attractions such as
Stonehenge, Victoria and Albert Museum,
London Eye, Big Ben and other such visitor
attractions attract the large volume of the
tourists. Business associated with the
hospitality take cares of the different
needs of the international tourists who
come to visit the visitor attractions. It
provides shelter and food facilities as per
their demand and budget. A large volume
of the tourists come to visit the different
sports and cultural events such as
Olympic. It is very difficult for a nation to
manage these kinds of the huge crowds.
In such scenario, hospitality sector takes
the responsibility to provide all the
facilities so that tourists can enjoy the
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events and as well as their journey
(Walker, 2016).
Travel and tourism sector also reflect
positively on the hospitality sector. As the
volume of the tourists increases the sales
and profitability of the organizations
associated with the travel and tourism
industry also increases to a significant
level. For example, the people come to
visits the visitor attractions such as
Stonehenge, Victoria and Albert Museum,
London Eye, Big Ben, science museum and
other such visitor attractions need the
place to stay and food which reflect
positively on the business of different
business organizations such as hotels,
restaurants, pub, nightclub etc. The sales
and profitability of these business
organizations increase to a significant
level at the time of the different cultural
and sports events such as cricket match,
football match or Olympics.
It can be said that travel and tourism
sector depends significantly on the
hospitality sectors for attracting and
managing the domestic, inbound and
outbound tourism. It is imperative for a
nation to consider the hospitality sector
while developing the strategies for the
promotion of travel and tourism sector. A
country needs to develop effective
strategies tactics for the betterment of
the hospitality sector so that business
organization associated with it can deliver
the better and desired services to the
tourists. It can be also suggested that a
business organization associated with the
hospitality should also focus on the
different aspect of the tourism sector in
order to achieve all the different
organizational objectives (Walker, 2016).
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TASK 2
2.1ANALYSIS OF THE IMPLICATIONS OF INTEGRATION TO THE
HOSPITALITY INDUSTRY
INTRODUCTION
Every business focuses on the expansion of the business in order to enhance the market
share and profitability. Integration is one of the effective ways to achieve the different
organizational objectives such as business growth. Integration may be defined as the
process in which a business takeover or merge another business. It is imperative to
understand the key type of the integration which can be adopted to achieve the significant
growth. This task is written from the perspective of the junior consultant in PKF hotel
experts in order to investigate the topic deeply.Hotel Marriot is adopted in order to make
the deep understanding of the integrations and its impact on the business organization
The business organization associated with the hospitality sectors also focus on the
integration. There are different benefits of the integration which makes the organizations
focus on it. In the hospitality sector, big business organizations take over the small business
in order to expand its business. The key benefits of the integration include enhancement in
the market share, sales and profitability. There are two different of integration which can be
adopted by an organization (Joskow, 2012). Types of integration are :
 Vertical integration
 Horizontal integration
VERTICAL INTEGRATION
It is an effective competitive strategy which can be adopted by a company to take complete
control over the production of distribution of a product. In the hospitality sector, large
organizations take control over the one or two stage of marketing, production etc. The main
motive behind the selection of the vertical integration is to minimize the cost and to
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enhance the profitability. There are different types of vertical integration such as backward
integration and forward integration (Atalay, et al. 2014).
HORIZONTAL INTEGRATION
Horizontal integration is an organizations' acquisition of a competitive or similar business. In
the hospitality industry, the horizontal integration is feasible as the function or business of
two different organizations is same therefore it would be easy for the company to grab the
customer base of the other company. Horizontal integration may be more effective in the
different situations such as when the industry is growing or when the rival company lacks
the expertise that an organization which wish to overtake has already achieved. It can help
the company to achieve economies of scale and that can serve as the competitive
advantage to the company (Bresnahanvand Levin, 2012).
There are many business organizations which have adopted the integration and merger in
order to expand its business. For example, Marriot international took over the Starwood
hotels &Resorts valued at 12.2 billion US$ which is considered as the largest transaction of
its kind in the hotel industry since 2007. In 2015, Blackstone acquired Hilton for 26 Billion
US$. Wyndham Worldwide also acquired Dolce Hotels & Resorts by paying the significant
amount of money that is $57 million. There are other such examples which show that the
big business organization focuses on the business integration in the hope of market
expansion and enhancing profitability. There are various benefits of the integration which is
achieved by the large organization to make a significant growth.
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2.2 EFFECT OF INTEGRATION ON A HOSPITALITY BUSINESS
As mentioned in the previous section of this report that large organization acquire or merge
with the small organization, therefore, it is very important to focus on making effective
decisions regarding the business integration.
Hotel Marriot is one of the leading hospitality company that manages as well as franchises a
brand portfolio of hotels and related lodging facilities. It serves in the different nations of
the world and has headquartered in Bethesda, US. Company possess over 65,000
properties in more than 125 countries across the globe. One of the reasons behind the
success of this company is that it focuses on the integration and merger to grab the
significant market share. It has overtaken the different small organizations to expand its
business. It took over the Starwood hotels &Resorts valued at 12.2 billion and it also
acquired Delta Hotels & Resorts for 457 million. These integrations have impacted
significantly on the business of the hotel Marriott. The key impacts of the integration of the
business of an organization are:
 Economies of scale
 Globalization of the hospitality sector
 Improved quality
 Enhancement of brand awareness
 Enhancement of the market share and profitability
ECONOMIES OF SCALE
As the size of a business organization increases it gets the opportunity to reduce its
operating cost by taking advantage of the economies of scale. When a hotel overtakes the
other it needs more resources to operate its business. One of the key advantages of the
integration is that it can purchase the resources at low cost from its suppliers (Bernardo, et
al. 2015).
GLOBALIZATION OF THE HOSPITALITY SECTOR
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Integration of the business leads to the globalization of the hospitality sector. The hotels are
focusing on the expansion of the business in new market or country in order to grab the
opportunities provided by the market of that country. Globalization provides ample
opportunities to organizations associated with the hospitality sector. Hotel Marriot has
become the global brand after the merger with different companies in different countries.
IMPROVED QUALITY
Quality is the factor customers concern about. It is very important for an organization to
improve the quality of the products and services. Integration reflects significantly on the
quality of the products and services provided by a company. As the company expand its
business it has to deal with the different types of the customers. It helps the company in
understanding the needs and demand of all customers and hence company can develop
effective strategies to meet them. Meeting the expectation of the customers improves the
qualities of the products and services (Mok, et al. 2013).
ENHANCEMENT IN BRAND AWARENESS
As the company expand its business in different countries it brand awareness increases to a
great extent. The company gets the international brand recognition which helps in
enhancing the trust of the employees towards the company. It also enhances the brand
value. For example, Hotel Marriot has overtaken the various companies and now expanded
the business in different countries. This expansion has helped the company in establishing
as a strong brand with international presence (Kandampully, et al. 2015).
ENHANCEMENT OF THE MARKET SHARE AND PROFITABILITY
It is the main benefit of the business integration in not only hospitality sector but also in
other different sectors. As the company overtook any company the customers of that
company becomes its customers which reflect significantly on the sales of the company.
The company gets the brand reorganization which reflects significantly on the sales on the
company. The enhancement in the sales of the company reflects significantly on its
profitability. Hotel Marriot has taken over the different business which has reflect
significantly and positively on its market share and profitability (Bernardo, et al. 2015).
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CONCLUSION
It may be concluded that there are different factors integration can reflect considerably on
the business growth. There are different benefits of the integration which makes the
organizations develop strategies for the effective integration. There are two different of
integration which can be adopted by an organization they are vertical integration and
horizontal integration. There are many business organizations which have adopted the
integration and merger in order to expand its business and that have provided a benefit for
them. The key impacts of the integration of the business of an organization are economies
of scale, globalization of the hospitality sector, improved quality, Enhancement in brand
awareness and enhancement in the market share and profitability.
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TASK 3
DEVELOPMENT PLAN FOR THE INDUSTRY WITH RATIONALE STUDY
STAGE 1 DEVELOPMENT
CONCEPT – the present development plan for the hospitality business will going to show the
establishment of a fast food chain which will go to provide the fast food with fresh
ingredients so that it will be tastier than others and competitively healthier than others. This
common idea of a fast food business is selected because of the fact that this is the only
business which is a long-term sustainability business unit as people will never stop eating
tastier fast food. In addition to this, the business aims to deliver quiet health fast food which
is better than other ones in the locality with the vision to provide tastier and healthy fast
food for the good times. For the current business, the raw materials will be taken from the
fresh garden at home of the business owner so that the quality can be maintained from
initial stage, while for the case of non-veg materials, a deal will be made with more than 2
fresh meat suppliers if possible to get access of unstoppable raw material for daily needs at
the shop (Barringer and Ireland, 2010).
MARKET RESEARCH – after analyzing the getting more complex market situation there is a
need to deeply research the market situation first and then implement some decision and
plans for the business. The market analysis of Porter’s Five Forces for the current business
idea will be shown here.
Suppliers power – for the present business case there is no effect from this power as all the
vegan raw material will be taken from the personal garden of the owner at home while the
variety of meat will be gathered from two different suppliers to avoid their bargain power
and pursue the business operations effectively.
Buyers power – customers are the major aspect of every business and hence their demands
should be handled and hence the dishes will be completely authentic at very low prices than
other business units as most of the raw materials will be grown in personal gardens. In
addition to this, for the loyal customers or those who want to be a term member of the
shop, there will be some added discounts to them every time they visit the shop (Dobbs,
2014).
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The threat of substitutes – for the fast-food chain, there will be always tough situation
regarding the competition from the present businesses. At present, there are numerous
multi-national fast food chains which directly affects the business of small shops like this
case while with the other small local business, the major percentage of threats are present.
A threat of new entries in markets – starting a new business is getting more complex with
the different legal provisions and policies with the financial concerns while in many
countries government provides funds to the people for starting their new business and
hence there are huge possibilities of having some new business which will affect the
business in future.
Market rivalries – this is not the factor to be concerned about for the fast food chain
business owners as they are starting their business with their planned strategies which will
not affect the other businesses, company want to make better relations with all the people
who are related to their business; employees, customers, society and all other stakeholders.
TARGET MARKET – we have not defined any particular target market for the business as it
will be for people of all ages who can eat our dishes with fresh ingredients and taste.
Targeting an audience range is possible for the large businesses hence we will not focus on
any particular targeting range at present.
LOCATION – the business of the fast food dishes will be going to open somewhere at the
centre location of the city so that most of the people can access the food and taste best and
fresh fast food of their life.
SCALE – the business will be a small-medium sized venture with sole ownership. There will
be some areas where the company has to deal with only after then it can be expanded in
future.
FUNDING – for this business, a major portion of the financial funds will be raised from the
life earnings by the owners and other major portion will be from the mortgage loan. In
addition to this, if there is a further requirement of the funds, that can be raised from
family, relatives and colleagues.
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PRODUCTS – as the business is a fast food business the products will be burgers, craps,
coffees, sweets and fruit beverages.
LICENSING – the overall business will be an ethical business venture with none of the
operations which will affect the society or any person. In addition to this, the registration
and the business will be taken with full documents and legal structure of the business.
STAGE 2 DESIGN
The fast food shop will have a fresh air open sitting in the garden area which will create an
ambience of relaxed and cool environment for the customers and the staff also while the
other decorations will be frequently changed according to the traditional festivals and
special occasions of the world to attract different people in the locality. With the friendly
culture and business operations of the staff members, the business will be maintained a cool
place to spend time.
In the starting stage of the business, the brand name will be not much popular but with the
time and effective strategic marketing and positioning strategies this will going to gain an
effective brand name. For this, the interior and exterior of the shop will also be focused. For
interior designs, the shop will use authentic designs so that people will feel a food place to
grab lots of food dishes at low prices and spend more time with the comfortable sitting
arrangements and service. In addition to this, the exterior ambience and environment of the
shop will have natural scenes in the city to feel relax and enjoy the food (Teece, 2010).
After this, there is another designing area which involves some legal aspects which the
functional areas of the business are. The billing section will be managed by the owner only
while for the cooking and ordering areas the business needs to recruit at least two people
initially and hence support in maintaining the business operations. Moreover, the
assignment will have some customer flows or concerns in ordering, late delivery, taste or
any other issue hence they also have to manage their tasks according to the overall
situations and make better decisions so that customers can be handled effectively, and good
relations can be made with them. This is the concern which is directly linked to the target
market and the needs of everyone. As mentioned above, the target segment of the business
will be from the age of 8 years to 60 years and hence there will be great opportunities to
serve the people.
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STAGE 3 OPERATION
The operations of the business will be based on cooking and serving majorly with some
staffing tasks. Initially, there will be need of only two highly skilled people who can maintain
and handle the critical business situation and if these staffing will lead to effective growth
and success of the business; this strategy will also be used in future recruitment processes
for the fast food shop. There is a need for people who are aware of the hospitality industry
and the various situations of business so that effective decisions can be made for the
welfare of the company.
Legally the whole business will be ethically pursued and to avoid the cases like staffing and
recruitment for the shop. This concern, if any, will be effectively managed with the in trend
promotional activities and platforms to deliver the message to the people about the
business. The marketing mix and the activities were selected according to the capabilities
and needs of the markets (Slack, et al. 2010). The overall marketing will be based on
internet and social media platforms which connect every people of the society which a
strategic competitive advantage for the business will be eventually to make it more
successful.
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CONCLUSION
After investigating different aspects of the hospitality it may be concluded that a company
should focus on all the various elements which can help in boosting up the growth of its
business. All the different elements of the hospitality industry are interrelating with travel
and tourism sector. The hospitality sector plays a significant role in the travel and tourism
sector. Hospitality industry underpins various types of travel and tourism such as business
travel, aviation, conference and exhibitions, visitor attractions and theme parks. The
business organization associated with the hospitality sectors also focus on the integration.
There are two different of integration which can be adopted by an organization they are
vertical integration and horizontal integration. There are many business organizations which
have adopted the integration and merger in order to expand its business and that have
proved beneficial for them. It delivers the different benefits such as economies of scale,
globalization of the hospitality sector, improved quality, Enhancement in brand awareness
and enhancement in the market share and profitability. An organization should consider all
the different factors in order to develop an effective plan for the development of the
business.
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