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

This comprehensive study explores the vital role of the hospitality industry within the travel and tourism sector. It delves into the interrelationships between hospitality and wider travel and tourism businesses, analyzing the impact of integration on the hospitality industry. The study further examines the implications of integration for hospitality businesses, including both advantages and disadvantages. Finally, it provides a detailed plan for developing a new hospitality business, outlining the operational requirements, organizational structure, and human resource allocation strategies.

Unit 12 Hospitality Provision in Travel & Tourism Sector
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................4
LO1 Understand the role of the hospitality industry within the travel and tourism sector.............4
1.1 Discuss the interrelationships between hospitality and wider travel and tourism businesses...4
Task 2...............................................................................................................................................9
LO2 Understand the impact of integration within the hospitality industry.....................................9
2.1 Analyse the implications of integration to the hospitality industry.......................................9
2.2 Discuss how integration has affected a hospitality business................................................12
Task 3.............................................................................................................................................14
LO3 Be able to plan the development of hospitality businesses...................................................14
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market.........................................................................................................................................14
3.2 Develop a plan for a hospitality business including the operational requirements of the
business’ organizational structure in relation to human resource allocation.............................17
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Introduction
The hospitality industry is growing like tourism industry which offers implementations and
integrations. The services in the tourism sector are improvised by the addition of hospitality
facility. The present work is constructed by considering the tourism requirement and hospitality
amenities to identify the relation of hospitality with tourism industry and effect of integration in
tourism. This work also targeted on requirements for new business setup and development plan
formation to carry forward the business target. This work also focuses on various business
opportunities, employee recruitment, and scale of operation with respect to the business
development.
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Task 1
1.1 Discuss the interrelationships between hospitality and wider travel and tourism
businesses
Title: Interrelationships between hospitality and tourism business
Date: 23 July 2018
Introduction:
Travel and tourism sector is an important segment for the development of the country
economy. Business strategy and development of both hospitality industry and tourism sector
are interconnected to each other in terms of exchanging services with providing base facility
like accommodation, entertainment, transportation, travel comfort to the visitors (Pablo, et. al.,
2017). Hospitality business relies on the development of tourism sector by generating the real
mean for tourist attraction.
Tour and Travel sector
Tour and travel sector involves service supply chain which enablesthe different service
provider to serve on a single platform. These service providers are retail travel agents, tour
operators, and ticket agencies that helping the formation of the travel plan. Tour and travel
service also provide passenger transportation and accommodation services to the visitors.
(Figure 1: Services in the tourism sector)
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(Source: By author)
Hospitality
Hospitality is a wide term deals in providing services to the customers in terms of generating
separate platform to serve their customers. Peoples prefer to avail hospitality services for
different causes depending on their needs and motivation. Different type of hospitality serving
sectors are as follows:
 Airlines: Hospitality facility of airlines is necessary for airline performance which
depends on seven different factors i.e. cost of travel, services in flight, boarding
arrangements, the crew inside the flight, aircraft, customer check-in timing and seat
reservation.
 Sports events: Hospitality arrangements are a basic need for arranging sports events in
terms of providing facilities to the guest like warm welcome at the reception, providing
a full-course meal, the arrangement of entertainments in free time etc.
 Business event: Hospitality services in a business event are important for maintaining
the relationship among business commodities. That can achieve through providing the
best hospitality to the companions by serving drinks, food, audio and visual
equipment’s, parking facilities, caretaker for normal works etc.
 Visitor’s attraction: Addition of hotels, the restaurant at the tourist preferable location
promotes hospitality business in terms of serving more visitors in a user-friendly way.
Hospitality at visitor attraction places generates more business opportunity and
employment among local peoples.
 Theme park: Theme based hospitality promotes the involvement of local peoples in
arranging lodging, dining, fast-food facility which open a new source of earning for a
small-scale business. The value of the local things and aspects increases with exposure
and customer attention.
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(Figure 2: Different sector of the hospitality industry)
(Source: Jobs, 2016)
The relationship between hospitality business and tourism sector:
Hospitality industry deals with services like hotel facility for accommodation, leisure services,
transportation, dining, restaurant etc. for the ease and convenience of the customers. The base
requirement of hospitality services is promoted by means of customer demands that directly or
indirectly supports travel and tourism needs of the visitors (Aureliano, et. al., 2017). PKF
Hotelexpertsare the market leader in the UK in terms of providing hospitality services to the
customers. Their functioning and revenue enhancement determine by the visitor's attraction
toward the tourist destination. Growth and development of tourism services motivate more
visitors to avail of the tourism services which in-tern regulate the hospitality business to create
comfort for the visitors. PKF Hotelexpertruns its own travel based consultancy and also work
in association with the different travel industry to promote the hospitality business and
generated more income from tour related leisure.
 Traveling needs:Traveling needs depends on visitors type and choices. This can be
fulfilled by arranging all the basic necessity of the visitors during the time of travel.
Hospitality services like accommodation and transportation are some necessity that can
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only be accomplished by maintaining hospitality services according to the need of visitors.
 Holliday packages: Services that incorporated in holiday packages are primarily
contain hospitality services to provide customer basic needs and generate revenue from
the services.Travel operators work in association with hospitality service provider in
order to implement and add features and services in traveler tourism plans. Travel
operators also make deal with hotel and transportation industry in terms of price for
generating benefit for both tour operator and hospitality service provider by means of
providing compassion. Hotel business also gain customers and more business
opportunity through working together with tour operators. This tremendous efforts of
tour operators and hospitality service provider emerge single platform for presenting
services to the customers. This particular aspect of tourism and hospitality business
produce ease and comfort for visitors in terms of searching and availing the required
tourism related product. The user can also access the services on the previous review
and experiences of the customers who already experienced the travel and hospitality
services. Logically, the tourism business in association with hospitality services
affectthe decision-making ability of customers and help the customer to understand the
basic needs during the time of travel.This kind of association adds value to the
proposed holiday packages and motivates visitors toward the availing the tourism
services. Both travel and hospitality services in sum involve supply chain of the service
provider. The dependency and involvement of supply chain within the service generate
business opportunity and employment for the local area peoples.The
opportunityforemploymentconsiders as one of the important sources for country
GDPenhancement.
 Marketing: Presentation of travel packages with the assimilation of hospitality
services produces a single platform for marketing for hospitality and tourism. This is a
cost-effective approach in which both the travel and hospitality industry get mutually
benefited.Marketing at single platform produces convenience for the customer
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Conclusion
This article analyses the relationships between the hospitality and travel business. Various
factors are analysed in this article. The tour sector describes first and then interrelated with the
hospitality. The hospitality business is nothing without the tourism business.
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Task 2
LO2 Understand the impact of integration within the hospitality industry
Executive summary: PKF Hotelexpertsis the market in a leader in serving hospitality services
worldwide. The current business competition between industries inspiresthe hospitality and
tourism industry in a way that can attract more customers towards using the service products. In
order to fulfill this demands company focusing on integration along with specified strategies and
functioning ability. Integration provides strength to the business and helps in enhancement of
company product sales. Mode of integration is segmented in two forms, i.e., vertical and
horizontal. The company can use this integration according to the implementations requirements
and value addition needs.
Introduction: Hospitality industry tries to focus on market demand and attainability of resources
for fulfilling that demands. Hospitality forms the base for integral management of the tourism
industry. Affective management of hospitality services in the of the hotel, restaurant,
condominium, guest houses etc. and transportation-related hospitality in airline, cruise, train,
travel buses etc. are some basic necessity to promote the business of hospitality and tourism.
This involves a service supply chain which requires timely integration to enlarge the business
work platform.
2.1 Analyse the implications of integration to the hospitality industry
Implications of integration to the hospitality industry are deals with various changes and
requirements that needs to enhance the business revenues. The core process of integration ink
Hotelexperts involves strong strategy and implementation ideas which can be able to improve the
rank of company brand name. One part of integration is performed through horizontal mode that
allows implementations and addition in service supply chain. On the other hand, internal service
performance can be implemented through the vertical mode of integration (Chen, et. al., 2017).
In order to analyze the integration in hospitality business following points is explained here in
details for improving the understanding of the integration concept.
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(Figure 3: Measures of integration)
(Source: By author)
Horizontal integration: Horizontal type describes multi-user involvement with dependency on
various service providers that are combined acting on a single public known platform. Horizontal
implementation of integration is performed within these service supply chain to facilitate the
customers in a better way. This particular type of integration offers small-scale business growth
in association with the known brand name. PKF Hotelexperts are always ready to find the
opportunity of integration that can help the industry in business enlargement and promotion on a
worldwide network. In order to achieve business enhancement target many other hotel industries
previously attempted integration process(hospitalitytech, 2018).Examples of the horizontal type
of integration are as follows:
 CarlsonRezidor Hotel group implemented brand name and change it to Radisson hotel
group in 2018.
 Arrived who is a hotel booking service provider implemented separate neighborhood
guide in 2017, for the convenience of the customers in searching hotels.
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Vertical integration:
Vertical integration allows partnership between two different organizations to exchange the
services within the organization. Examples of vertical integration are as follows (hospitalitytech,
2018):
 Choice hotels form an alliance with Sercotel hotels in 2018 for sharing their mobile
applications and books facilities.
 Amable hotels (Spain) sign partnership deal with Hotelogix in 2017 for increasing the
efficiency and performance of both hotel industries.
Vertical integration is subdivided into two modes of integration i.e., backward and forward type
of integration.
 Backward integration: In this type of integration company buy or takeover the other
company in order to enlarge its business network and providing more strength to the
business present status.
 Forward integration: This type of integration involves buying small business Retailer
Company for adding a new feature to the existing services.
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2.2 Discuss how integration has affected a hospitality business
Effect of integration in the hospitality business is described by evaluating its impact on business
development. The process also explains the necessity of integration within the business profile.
The value addition in business also has many difficult and issues with some disadvantages that
can affect the business revenue (Schoffstall, 2013). Considering the impact of integration in the
hospitality business, advantages and disadvantages are as follows:
Advantages of integration
Vertical integration Horizontal integration
The implementationprovides business
enlargement
Provide service enlargement by allowing
integration between tour operators.
Help industry in sustaining in the business
world
By horizontal integration, hospitality business
can serve faculties to the customer at large
scale.
Enhances overall company economic value Promotes small-scale business and directly or
indirectly enhances country GDP.
Promotes branding of the company by
enhancing its world raking
Enhances service standard
Branding amendsthe popularity of the industry
at a global level.
Help in gaining customer satisfaction by
providing services efficiently
Globalization attracts more customers to avail
of the hospitality service of the industry.
Both local community and hospitality business
related operators get mutually benefited with
horizontal integration
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Disadvantages of integration
Vertical integration Horizontal integration
The business association may not achieve the
expected profit
Less efficiency of any operators affect the
performance of other operators
The complexity of organization procedure may
result in a dispute.
Less amount of customer reduces the demand
for service
Business culture may affect the work
performance.
The complex understanding between the work
procedure affect the service standard
The dependency of work may produce a delay
in service
The low budget may affect the work
performance.
Conclusion
Integration is the necessary promotional activity within the organization. Hospitality business
offers integration to enlarge its business structure in terms of generating more scope and
opportunity for both customers and employees. In order to achieve business target hospitality
business allow both vertical and horizontal type of integration. Association of the business
organization through vertical integration provide sharing of facility among the organization that
can help the customer in availing more services on the single platform. Integration also allows
tour and hospitality related operators to work in a combined format for enhancing the service
efficiency and accuracy. Integration generates more business opportunity for the operators in
within the same locality. Conclusively integration associated with both advantages and
disadvantages which probably affects by business strategies that decide the real outcome of the
business.
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Task 3
LO3 Be able to plan the development of hospitality businesses
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market
Hospitality provision in the establishment of the new restaurant is stated below. Rationales of
hospitality provision in the establishment of new restaurant sector are constructed for the
sustainability of the business in the new locality thereby promoting sales and revenue of the
company products. Aspects that help in understanding the whole concept of hospitality provision
in the establishment of new hotel business sector depends onpublic needs and business
opportunities.
Factors related to open a new restaurant
 Market strategies: Market research is fundamental requirement for establishing new
restaurant. Market research generates a new idea for the development of business
strategy. This not only helps in planning business but also supports the selection of
business location. Core research of market analyzes the customer demand and dearth of
activity within the existing services. Implementation of those services in the restaurant
tends to attract more customers towards availing the feeding and dining facility of the
restaurant business. Addition of new services allows new hotel industry to establish their
rank among the existing same business competitions. Market research forms a profile to
choose the best options for prioritizing the customer demands and decisions (Turner,
2017).
Market research explains the real aspect of business setup. The research defines the target
area by which business can gain more profit. Market target helps in business objective
formation with respect to the opening of restaurant business growth. Market target
generates a new opportunity for the business development. This particular exercise
promotes business efforts like hospitality standard, customer type, pricing structures and
value addition aspects.
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 Location& size: Location selection for the opening of restaurant business setup depends
on market demand and type of customer to whom the business-related employee has to
deal with future. Location describes the virtual dependency of new business on
surrounding in terms of selling services and generating revenue from the provided
services. Location for the new business establishment is determined by measuring
customer financial status and their feeding habits. Selection of the wrong location may
result in a lossof business function and ultimately the revenue reduction from the deliver
services. Working size of the business is decided by the availability of land area at the
presently selected location. Land area is a matter of concern for the start-upof the new
hotel business. Selection of size particularly described by the cost per capita. Availability
of resources is another issue in the formulation of new business work structure.
 Funding& partnership: This is the basic need for the start of the new restaurant
business. Funding affects the whole structure of the business setup. This is associated
with the selection of location, work area, construction size, hotel infrastructure, hotel
menu, and all the hotel related amenities. Hotel contingency allowsthe involvement of
different stakeholders and association of large business brand name for arranging the
entire fund related necessity. Association of the large brand name with the newly
established restaurant business reduces the cost of promotion and advertisement due to
the previous name brand and a list of satisfied customers.
The particular aspect is associated with a positive step in order to enhance funding and
overcome the unexpected loss. This is a mutual understanding of different peoples in
starting a single business and sharing all the funding required to start a new restaurant.
Opting partnership for a business start is a good option for arranging all the amenities. All
the partners in the same business can mutually benefit from each other and also bear the
same losses.
 Product and services: Selection of product and services in hotel business like food,
interior etc. are dependent on customer satisfaction. New restaurant business needs to
develop a separate investigation team for managing hygiene, food taste, restaurant
standard for the customer satisfaction. Product and service management forms the base
for attaining standards of restaurant. The goods and services provided by the restaurant
decide the customer interest and its future growth for the business sustainability.
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3.2 Develop a plan for a hospitality business including the operational requirements of the
business’ organizational structure in relation to human resource allocation
The development plan is an essential parameter for establishing a new business. The
development plan of the hospitality business describes all the activities with respect to the
rational, strategy and operation (Canha, 2015). Work-force selection according to the business
demand and allocation of employees with respect to their skills decides the accuracy of the
development plan.
(Figure 4: Business development plan)
(Source: Amilineni, 2017)
The development plan is segmented into three different stages and inaccuracy in any of the stage
construction results in business failure (Wu and Li, 2017). The details of stages in order to
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developa business plan related to the hospitality with respect to operational requirement and
work-force allocation is explained below:
There are three stages that are involved in the development of all the business plans.
Stage 1 Development
The concept of development of new hotel business focuses on the analysis of different
opportunities and its implementation in new business according to the market demand. The work
selection is highly affected by market status and public demand. List of important steps for
constructing a development plan are as follows:
 Business research: Business objective can be fulfilledbyanalyzing the business-related
views and experiences. Hotel business needs core evaluation of all business related pros
and cons. Business-related market research helps in idea generation and implementations.
This research requiresan experienced employee with excellent marketing skill in hotel
business field, in order to improvise the market understanding about the business.
 Funding, location, and size: Funding affects the whole development plan in relation to
the selection of location, and business construction size. Funding, location, and size
described the pay structure, workforce type, and employee count.
 Licensing: Business licensing is a vital step to start a business in a legal format. Taxation
is arranged on the basis of licensing business category.
 Pricing: Hotel menu and price also act as an important feature to start a new business.
Effective selection of hotel menu by considering customer type and status with respect to
the location which opts business start is an art for running a successful business.
Stage 2 Design
Hotel business design deals with business ambiance creation in order to fulfill the business target
i.e. to attract more customers and motivate them to avail of the hotel services. The design deals
with numerous features which are as follows:
 Ambiance: Hotel ambiance creates mesmerizing environment in the workplace. The
ambiance of the hotel is decided by the customer type and culture. Soothing
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ambianceprovides a relaxing atmosphere for the customer who wants to enjoy food in a
relaxed way. On the other hand, customers who are fun loving prefers to choose an
exoticambiance.
 Brand: Branding attracts catches more customers and increases the business popularity
among the local area peoples. Brand describes the product quality and accessibility.
 Interior: Interior designing need a specialized person that can construct all the internal
system of the hotel in an innovative way. Nowadays attractive and unique interior attracts
more customers towards the hotel facilities. Interior includes proper seating arrangement
and hotel room designing for facilitation the customers.
 Market link and customer needs: Market link help in the hotel business in targeting
preferable customers. This can also help in identifying the customer needs and type to the
centralized location. Hotel industry enhances its revenue by fulfilling customers’ needs
and market demand.
 Sustainability: Service addition and implementation in an existing facility are required
for the hotel business sustainability. The measures of sustainability depend on service and
product sale.
Stage 3 Operation
 Functional area: Management of functional area like hotel security, services, customer
privacy, outdoor catering services, housing maintenance needs to develop in such way
that can gain customer satisfaction and increases the customer efficiency in using the
same hotel amenities for future. Good management of functional area also enhances
reviews and ranking of the hotel.
 Qualification: New business setup required experienced and qualified employees in the
concerning field. Hotel business requiresa person with a degree in hotel management
courses. Higher degree and experience help business in recruiting a right employee at a
suitable position within the industry.
 Functional area recruitment: the staffing and recruitment in the hotel industry are done
according to the industry functional area (Calhoun, 2017). For example: separate staff
specialized in cooking are recruited for the kitchen, staff specialized in housing
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management is required for the room service, and reception and managerial position is
occupied by the person holding Master degree in business management.
 Legislation: Legislative issues like hotel hygiene, ethical issues, safe environment,
women help cell etc. are some important aspect of operational activity within the hotel
industry to maintain its standard and ranking.
 Promotional activity: Selection of a suitable platform for the business product
promotion is considered to regulate the customer’s choice in order to avail the hotel
services. The arrangement of different amenities within the hotels like music, videos, disk
etc. are some valuable approaches through which business can attract customer attraction
and help business promotion due to its additional activity. Generation of discount
coupons is another promotional aspect through which business can gain more customers
and helps in business popularity.
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Conclusion
This assignment work explains hospitality is responsible for the success of the tourism industry.
Hospitality industry deals with all the tourism related services like accommodation,
transportation, and entertainment. Hospitality fulfills all the objective of tourism development.
Integration determines the essentiality of hospitality in tourism by offering growth and
implementation opportunity. The future of hospitality business is so wide due to its expansion
and customer requirements. Both the hospitality and tourism industry can mutually benefitfrom
the mode of integration. Integration involves enlargement of the work area and help industry in
providing services worldwide. This assignment also defines crucially of hospitality amendments
in establishing new hospitality based business like hotel industry. The analysis describes
essentiality for the development of new hotel scheme. The study touches all the parameters
related to development, designing, and operations by considering the rationales of the hospitality
business. Conclusively hospitality and tourism are interrelated with each other in terms of
providing amenities to the customer.
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