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

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This report explores the intricate relationship between the hospitality industry and the wider travel and tourism sector. It examines the role of hospitality in underpinning various travel and tourism services, including business travel, aviation, conferences, and visitor attractions. The report then delves into the implications of integration strategies, both vertical and horizontal, on the hospitality industry, analyzing their impact on branding, market control, and globalization. Finally, the report presents a detailed rationale and development plan for a new restaurant at the Hotel Marriott, outlining market research, target market identification, location selection, funding, product offerings, and operational requirements, including human resource allocation and an organizational chart.

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Table of Contents
INTRODUCTION........................................................................................................................ 4
TASK 1...................................................................................................................................... 5
THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER TRAVEL AND TOURISM
BUSINESSES.......................................................................................................................... 5
TASK 2.................................................................................................................................... 11
THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY INDUSTRY.............................11
HOW INTEGRATION HAS AFFECTED A HOSPITALITY BUSINESS..........................................13
TASK 3.................................................................................................................................... 15
RATIONALE DEVELOPMENT FOR A SELECTED PROJECT......................................................15
DEVELOPING A PLAN FOR A HOSPITALITY BUSINESS INCLUDING THE OPERATIONAL
REQUIREMENTS IN RELATION WITH THE HUMAN RESOURCE ALLOCATION WITH AN
ORGANIZATIONAL CHART..................................................................................................17
CONCLUSION.......................................................................................................................... 22
REFERENCES........................................................................................................................... 23
2

LIST OF FIGURES
Figure 1: Marriott Hotel........................................................................................................... 6
Figure 2: Restaurants............................................................................................................... 6
Figure 3: Pubs and Bars...........................................................................................................7
Figure 4: Nightclubs................................................................................................................. 7
Figure 5: Overlapping of hospitality and tourism industry.....................................................9
Figure 6: Organization structure........................................................................................... 17
3

INTRODUCTION
The hospitality industry is one of the wide groups of the service industry which involves
event management, lodging, transportation, cruise line, theme parks and extra areas
contained by the tourism industry. It is a multi-billion-dollar industry which is based over the
disposal of leisure time as well as disposable earnings. There are various hospitality units
like hotels, restaurants, bars and clubs, or amusement parks comprising different parts like
direct operations and facility maintenance (housekeepers, servers, kitchen workers,
bartenders, human resources etc.). The travel and tourism is an important and ever-growing
part of the hospitality industry which also provides hospitality services to the outside
visitors. Under this assignment in the first task, an article is presented on the role of
hospitality which is also encircled by the travel and tourism sector. In the next task, the
different impacts and influences of integration are depicted within the hospitality
businesses and industry. Finally, a business development plan is presented in the context of
the hospitality industry of the UK.
4

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TASK 1
THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER TRAVEL
AND TOURISM BUSINESSES
THE ROLE OF HOSPITALITY INDUSTRY WITHIN THE TRAVEL AND TOURISM SECTOR
The hospitality industry is the industry which covers a variety of food businesses along with
the requisite services in the industry. The hospitality sector involves a range of hospitality
units providing the community with the services of meals, drinking water services, lodging
facility external to the home. These facilities provided in different units and settings like
hotels, restaurants, pubs, bars, clubs, and other types of hospitality facilities. The hospitality
industry of the UK is growing at a very fast speed because of its attractiveness all around the
world and the more earnings generation capacity of the sector. The UK's hospitality industry
is the fourth largest industry which provides employment to the UK people with 3.2 million
jobs. As the industry is growing in the past 3 years from 2014 to 2016, it is showing potential
to generate around 500,000 new employment up to 2021 (Tribe, 2011). The hospitality
industry is free from biasness and it is one of the major employers in every nation and
region of the UK.
COMPOSITION OF THE HOSPITALITY INDUSTRY
Before understanding the relationship of the hospitality industry with the travel and tourism
sector it is necessary to gain knowledge about the different units of the hospitality industry.
HOTELS
Hotels are the establishments which facilitate with the paid accommodation for a short-
term tenure. Hotels may provide a variety of services and lodging from a small room with
quality mattress accommodation to the large suites having world-class facilities. The small or
lowered price hotels deliver the basic visitor services. On the contrary, the larger or high
priced hotels facilitated with additional services like swimming pool, childcare facility,
business centre, gymnasium, day spa, social function etc (Swarbrooke and Horner, 2012).
5

Figure 1: Marriott Hotel
Source: Best Design Guides, 2013
RESTAURANTS
Restaurants or eateries are the businesses which make and serve meals, food items, and
drinks to their customers in exchange for the money. Meals are usually eaten and served in
the premises only but several restaurants provide facility to take-home and food delivery
services also. Restaurants may vary with their offerings and appearances, comprising a large
range of service models and cuisines (Swarbrooke and Horner, 2012).
Figure 2: Restaurants
Source: Coast, 2018
PUBS AND BARS
A pub is that organization which has a license to sale alcohols and drinks (e.g. beer & cider).
A bar is a place which serves alcoholic beverages like wine, beer, cocktails, liquor, and other
drinks like soft drinks and mineral water (Mok, et al. 2013). These beverages may serve with
snacks and food items.
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Figure 3: Pubs and Bars
Source: BBC, 2018
NIGHTCLUBS
A nightclub is an entertainment place and bar which is generally operated late in the night.
It is different from the pubs, taverns, bars, by addition of a stage for conducting live music,
with dance floor and a DJ facility.
Figure 4: Nightclubs
Source: imbibe.com, 2015
CONTRACT FOOD SERVICE PROVIDERS
These are the companies which give catering services to other organizations, companies or
people. They generally serve the food facility to a large group of people for example
business industry, colleges, schools, health care units, public and local authorities, and non-
profit organizations such as army forces, ambulance facility, police etc (Brotherton, 2012).
HOSPITALITY SERVICES
Hospitality services also called “hospitality exchanges” or “accommodation sharing”. It is
centrally organized social services networked by the travellers who deliver or seek lodging
facility for money.
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TRAVEL AND TOURISM SECTOR
One of the important sector or part of the hospitality industry is the travel and tourism,
which provides various categories of services and facilities in their respective areas of the
travel and tourism. Let’s understand the services of the travel and tourism sector:
TRAVEL SERVICES &TOURISM SERVICES
The different services provided by the travel and tourism sector to their visitors include
tickets arrangements, travelling and lodging facilities, tour operator and booking services
etc. there are several retail travel agents acting as brokers between the customers and tour
operators. The tour operators and travel agents help the tourists through their holiday trips
and packages and make promotions on their services using brochures and ad campaigns etc
(Cook, et al, 2014).
CONFERENCES AND EVENTS
Conferences are the wide-scale facilities enclosing lodging facility for a large group of people
at a given period of time. These accommodation arrangements are conducted in a built-up
building having large halls and rooms for organizing the meeting. Conferences could also be
conducted in open big areas such as the marquee or in the large portion of the gardens.
Events are those plans and programs which are conducted by an individual or a company
such as dinners, parties, conferences etc. (Rogers and Davidson, 2015)
VISITOR ATTRACTIONS
Visitor's attractions comprise of various eye-catching and heritage attraction places such as
ancient monuments, amusements parks, state homes, recreational activity places, etc. They
are termed as visitors attractions as these places attract the tourists and visitors to often
visit the places again and again (Swarbrooke and Page, 2012).
ACCOMMODATION SERVICES
The travel and tourism industry also facilitate the visitor with the lodging facility.
Accommodation not only includes the bedroom services but also provides areas for
conducting functions and conferences. The bedroom lodging and accommodation served
with many facilities from cleaning to good food facility (Aldebert, et al, 2011).
PASSENGER TRANSPORT
The travel and tourism provide facilities for transport also through various means like
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roadways – bus, motor cars, bikes etc. rail transport, airlines, and other water transport
ways like ships and boats etc.
INTERRELATIONSHIPS BETWEEN HOSPITALITY AND TRAVEL AND TOURISM
There are several types when hospitality and tourism both are considered to be as one
industry but in reality, both are different from each other however both industries could
overlap with each other in form of various services and units. The role of hospitality is
significant in underpinning the various type of travel and tourism services as follows:
BUSINESS TRAVEL
The hospitality’s role in underpinning the business travel of the tourist is significant this
business travels could be in the form of exhibitions, get-togethers, official meetings etc.
These business travels are generally conducted by corporate companies by making contacts
with the tour operators or service providers.
Figure 5: Overlapping of hospitality and tourism industry
Source: Oxford Economics, 2015
AVIATION
The aviation is that hospitality business which is very close to the travel and tourism of the
country. These services are provided by different travel agents or tour operators such as
Thomas Cook and TUI etc. TUI is providing their own managed airline facility and aviation
services. Their hospitality is seen in easy online booking services on the personal devices.
The hospitality industry role is very essential in underpinning the various other services of
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travel and tourism like conferences and exhibitions, visitor attractions and theme parks etc.
In conclusion, the hospitality industry is highly interlinked with the travel and tourism
industry and for sustaining the growth of travel and tourism by means of various services.
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TASK 2
INTRODUCTION
The hospitality industry of a country is highly dependent on the big scale organizations
aiming towards providing a high-class quality service to their guests or customers. These
make integration essential for a hospitality business within the periphery of the travel and
tourism sector. The integration will cater opportunities for the small as well as large scale
businesses to grow and expand with a needed pace. This management report develops an
insight into the impacts and influences of the integration on the hospitality units in the
current scenario.
THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY INDUSTRY
BODY
In the current competitive business scenario, the competition among the hospitality also
raised with a greater speed and becomes highly fierce, which makes companies lower their
costs and improve their sales. The cut-throat competition makes the hospitality businesses
to adopt the growth strategies. This report focuses on the integration strategy in the
hospitality business.
Integration strategies are broadly categorized into two types:
VERTICAL INTEGRATION
Vertical integration is the collaboration of two organizations which are operating at different
levels of the production, for example, a food producer and a supermarket chain. The level to
which a company acquires its forward suppliers or backward suppliers is called to be as
vertical integration. This integration put a substantial impact on the position of the business
organization in its respective industry in regard to differentiation, cost and other additional
strategic matters (Joskow, 2012). The scope of vertical integration of the company is a vital
factor in the corporate strategy of the company. TUI and virgin are the best examples of the
vertical integration.
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When a firm wants to capture its downstream suppliers it is termed as forward integration
and when a firm makes expansion by capturing its upstream suppliers it is termed as
backward integration.
HORIZONTAL INTEGRATION
Horizontal integration is the merging or collaboration of two businesses which are at the
similar level of production, for example, Hilton Hotels and Starwood Group. Horizontal
integration is the expansion of the company operations into different geographical locations
or by making an increase in the variety of services and products which is delivered in the
existing markets (Hassan, 2013). It also includes the acquisition of the other firm in the
similar industry but it should also happen on the ground of changes and modifications in the
company’s existing products and services.
IMPLICATIONS OF INTEGRATION IN HOSPITALITY INDUSTRY
The following are the implications of the integration on the hospitality businesses:
 Importance of branding and pricing policies:
One can see the major segmentation in the hotel industry where the role of branding
is very significant for covering the hotel industry market share. The segmentation in
the hotels is seen in form of budget and low-cost hotels to high range luxury hotels.
Branding is important could be very well understood from the launch of the new
brand in China by Intercontinental hotel (Leonidou, et al, 2013). Additionally, the
hotel may also pursue the vertical integration for reducing the cost for branded food
and services in China.
 Independent establishments joining associations to compete with the larger
organisations:
There are various independent hotels which make associations with the big brand
hotels for competing with the large hotel brands on a larger scale. Examples of which
are Wyndham worldwide has acquired the Dolce Hotels & Resorts at a value of $57
million, Greene King has absorbed the Spirit at a price of £773.6 million and
acquisition of Kimpton Hotels and Restaurants by the Intercontinental Hotels Group.
 Control and manipulation of the market:
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Integration is unavoidable in the hospitality industry for expansion at a global level
this could be possible by various controlling and manipulative measures in the
existing market (Hoque, 2013).
 Increased globalisation of the industry:
Integration plays a very significant role in the enhancement of globalization in the
hospitality industry. There are many big brands capturing the existing hotel business
by utilising their efficiency and effective operational capabilities with the help of
horizontal integration, which ultimately leads towards globalization of the hospitality
industry. For instance, Hilton hotels locations are increasing all over the world by
using integration strategy.
HOW INTEGRATION HAS AFFECTED A HOSPITALITY BUSINESS
INTEGRATION IMPACTS ON THE HOSPITALITY BUSINESS
The following are the impacts of integration which affects the hospitality business:
 Fewer major organisations:
Various efficient and small firms are absorbed by the few major organization using
integration strategy, which results in the few major players in the hospitality industry
for example Radisson Hotel Chains, Accor, Marriot International and Hilton
Worldwide etc.
 Reduction of independent businesses:
A number of takeovers and mergers has reduced the independent individual hotel
chains and restaurant chains in the hospitality businesses. This may result in a
monopoly by the big hotel brand and increased the cost of services.
 Economies of scale:
Economics of scale could be attained by way of integration in the hospitality
industry. It is possible because various big brand hotel groups and chains when
takeovers the small efficient businesses assist them to use their capabilities and
achieve low cost in their overall operations.
 Control of subsectors:
Few big hotel brands of the hospitality industry have resulted in control over of sub-
sectors in their gamut. All this sub-sectors could be controlled and managed in an
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effective way with adequate control of the support of the human workforce and
other essential resources obtained by way of integration.
 Increase in market share:
The most important benefit integrations could provide to the hospitality industry is
they provide a wider coverage of the geographical regions and a broad range of
customers of customers which leads towards an increase in the market share of the
business.
 Standardisation:
The hospitality industry, especially with respect to hotel businesses comprises of a
large number of big players or brands in the UK which are serving their services at
the global level, which will make them keep on maintaining the quality standards in
line with the international hospitality standards. Integration will lead to providing
standardization in their services on a global level.
 Improved quality:
The large hotel brands and groups have raised various job opportunities for the
unemployed job seekers. All these opportunities lead to the appointment of the
skilled professional in the industry with quality services. Marriott international
conducting training programs for its employees for delivering high standard services
maintaining the quality standards prevailing in the hospitality industry is a good
example of quality improvement (Bowie, et al. 2016).
CONCLUSION
This management report is based on the corporate strategy of integration and how it is
important in the hospitality industry. The report has represented the different types of
integration in the hospitality business along with its influences. In conclusion, integration in
the hospitality has major impacts on the hospitality business.
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TASK 3
RATIONALE DEVELOPMENT FOR A SELECTED PROJECT
While working as a Junior Consultant at the Hotel Marriott, I have prepared a rationale and
a development plan for the hospitality business. In this rationale, the plan for the
development of a new restaurant has been described-
STAGE 1- DEVELOPMENT
CONCEPT
The development of a new restaurant by the Hotel Marriot based on the current needs of
the customers is the concept of this rationale. This hotel can be developed by keeping a
concept in mind which will be based on the different taste and flavour of the customers of
the regional food. A big leisure hall can be built in this new hotel can be utilized for the
purpose of the wedding receptions, business methods and other functions and extra
amnesties and facilities will also be provided (Mowforth and Munt, 2015).
MARKET RESEARCH
In order to analyse the important features of a particular market where the restaurant will
be going to open, a deep research of the market is required with the help of the primary and
secondary research. In this, the market size along with the specific need and wants of the
customers must be analyzed before the development of the hotel takes place.
TARGETED MARKET
The Hotel Marriot must identify its targeted market and the customers and in order to attain
high growth in the business, the new restaurant must be targeting the potential customers
and the middle-income people (Papargyropoulou, et al. 2016).
LOCATION
The location of the new restaurant must be chosen specifically in the middle of the city so
that customers and tourists from the different locations of the city can visit the restaurant
and with the help of the central location 24*7 facilities cab be provided to the customers.
The hotel must be developed in a place where there are amazing scenes and views from the
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customers of the lakes and the monuments from its rooftop. This will help in the creation of
a large customer base (Bowie, et al. 2016).
SCALE
The new restaurant must be quite spacious and must accommodate approximately 500
people at a time so it would be built latest in an area of3500-4000 sq.
FUNDING
It is essential that a huge capital by the Hotel Marriot is prepared in advance and the
owners, hotel partners can together contribute in its funding and if some amount is not less
than it can be gathered from the bank loan. The total budget that has been approximately
estimated been about £ 3, 21,000 (Sharpley and Telfer, 2015).
PRODUCTS
The new restaurant must serve a wide range of food services that majorly includes the local
dishes, Italian and the continental dishes and 24*7 food services must be provided to the
customers with additional facilities like alcohol and other beverages.
LICENSING
It is essential that the Hotel Marriott must properly do documentation, license and to
authentication to avoid any issues in the future and for serving the alcohol permission must
be ta4ekn form the UK government and based in the government standards the services
quality of new hotel must be maintained (Chathoth, et al. 2016).
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DEVELOPING A PLAN FOR A HOSPITALITY BUSINESS INCLUDING THE
OPERATIONAL REQUIREMENTS IN RELATION WITH THE HUMAN
RESOURCE ALLOCATION WITH AN ORGANIZATIONAL CHART
It is essential to have a proper organizational structure before designing the new restaurant
at the Hotel Marriott. The organizational structure is defined as below-
Figure 6: Organization structure
(Source: Travel week, 2015)
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STAGE 2- DESIGN
AMBIENCE
It is essential the new restaurant must have a calm and soothing environment with a good
ambience like class-western and playing of the calm music in the lounge to attract a large
number of customers.
CULTURE
In order to maintain the workforce and people of different age group, healthy culture must
be maintained inside the restaurant which will help in the development of better customer
and employee relation. Proper quality of services must be provided to the customers by
marinating hygiene and cleanliness (Al Yousuf, et al. 2015).
BRAND
The brand awareness is required to be created for the customers but since Hotel Marriott is
already famous it requires less branding and in order to increase the brand value
promotions and campaigning can be done.
INTERIOR
The new restaurant must possess attractive designs and interiors which will be soothing to
the eyes of the customers. There must be a cosy and calm dining environment which can
provide some personal space to the people along with the comfortable seating (Jauhariand
Bharwani, 2017)
EXTERIOR
The customers are more likely to be attracted towards any restaurant by its exterior. So, the
restaurant must possess glasses lights, colourful wall painting and attractive frames that can
add more glory to the restaurant to attract more customers.
FUNCTIONAL AREAS
There are different functional areas that need to be managed in the restaurant like the
home keeping, restrooms, food, accommodation, waiting areas, supervision etc. In order to
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improve the satisfaction level of the customers, there must be a pre-booking facility
available in the restaurant (Menkhoff, et al. 2016).
CUSTOMER FLOWS
In order to maintain the customer flows, various discounts, coupons and offers must be
provided to the tourists so that Hotel Marriott can maintain its potential customers.
LINK TO TARGETED MARKET
The new trends of the targeted market must be analyzed based on which the design of the
restaurant must be maintained like it should effectively serve the purpose of the business
meeting and the family gathering can also be properly held in the dining area (Fraj, et al.
2015).
CUSTOMERS WITH INDIVIDUALITY NEEDS
The customer's preferences related to the products and the services of the restaurant must
be kept in mind while delivering the services and the employees of the new restaurant must
try to deliver the food in less so as to enhance the customer satisfaction.
SUSTAINABILITY
The restaurant will be required to maintain the high quality of products and services in
order to maintain the potential customers and attain sustainability in the business along
with it the sustainability issues must be settled (Crane and Matten, 2016).
STAGE 3- OPERATION
STAFFING BY FUNCTIONAL AREAS
Effective recruitment techniques need to be followed by the manager of the restaurant
based on the different functional needs which can help in the fulfilment of the customer
satisfaction.
SPECIALIST QUALIFICATIONS
People with knowledge, skills and experience must only be hired in the new restaurant like
for the post of the Cook people with only 5 plus year of experience must be considered and
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for the staff, the people must have at least 1 plus year of experience (Craneand Matten,
2016).
STAFFING ISSUES RELATED TO SEASONALITY
There are some issues that can arise in the restaurant related to staffing like during the off
seasons the company might have more employees so the hiring of the employees must be
made on a contract basis. It must be also be ensured that there are sufficient employees
during the peak seasons.
CULTURAL DIVERSITY AND WAYS TO DEAL WITH CONFLICTS
It is assumed that the employees with the different caste, culture, background and gender
will work together in the restaurant so cultural diversity must be managed properly inside
the workforce and no discrimination in the treatment and salary must be made. The
satisfaction level of the customers can be enhanced if there are fair policies in the
organization (Mowforth, and Munt, 2015)
RECRUITMENT POLICIES AND PROCEDURES
All the effective procedures and policies must be followed during the recruitment of the
potential employees for the new restaurant so that the employees with the right skill can be
selected.
COMPLIANCE WITH LEGISLATION
The new restaurant must have different licensing, taxation and the other policies related to
the alcohol serving and foreign trade policies that must be taken care by the management
of the Hotel Marriott (Chathoth, et al. 2016).
PROMOTIONAL ACTIVITIES
There are different promotional sources that can be used to promote the new restaurant of
the Hotel Marriott like the electronic media, digital media, e-brochures and emails that can
help in the generation of a huge customer base.
PRICING
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The prices of the food products and other services of the restaurant must be made in a way
that it must match the product quality and the targeted market. In order to maintain the
brand name of the Hotel Marriott, the restaurant must offer various discounts and offers to
the customers that can help the company to maintain its brand name and will make the
development of a new restaurant a successful one (Vanhove, 2017).
21

CONCLUSION
Thus, the wider travel and tourism business holds a close relationship with the hospitality
industry which has been effectively discussed in this assignment in the form of an article.
The merger and the acquisitions of the Hotel Marriott have been defined with the help of
the wide range of examples which has increased the sales of the organization. The various
impacts of the integration on the business of the hospitality industry have been discussed. It
has been analyzed that the business of the Marriott Group has been enhanced by its merge
up with the Starwood hotels. Lastly, a development plan has been made in which
procedures to open a new restaurant by the Hotel Marriott have been critically evaluated
along with its organizational structure.
22

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

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