Hospitality Project Rationale Formulation

This assignment involves analyzing the formulation of a rationale for a specific hospitality project. The report necessitates conducting thorough market research to understand industry trends and customer needs. It further requires defining clear project objectives and outlining a compelling justification for undertaking the project, demonstrating its potential benefits and alignment with broader business goals.

HOSPITALITY PROVISION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship among the tourism business and hospitality and also the wider travel. 1
Interrelationship between hospitality and tourism business...................................................2
TASK 2............................................................................................................................................4
2.1 Implications of integration to the industry of hospitality.................................................4
2.2 Integration has impacted a business of hospitality...........................................................5
TASK 3............................................................................................................................................6
3.1 Formulate a rationale for selected project........................................................................6
3.2 Prepare a plan for hospitality business.............................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................12

INTRODUCTION
The hospitality means a relationship among the host and guest, where a host of company
or hotel receives its guest in an appropriate manner. In the hospitality industry involves guests
entertainment, visitors, reception and also the strangers. The hospitality refers to the take care of
the visitors or guests and also fulfilling their needs and wants. The PKF hotel experts is
international leader in the hotel field as well as travel and tourism field. It is the largest
association of accounting, audit and also consulting enterprises. (Lynch and et. al., 2011) Under
this given business report mentions about the interrelationship among the wider travel and
hospitality and also tourism business.
There is also a discussion about implications of an desegregation to the hospitality
integration. Under this given report it mentions about an integration that can impact on the
business of hospitality. The develop a rationale for the particular project that is clearly justifying
decisions which is linked to the target market.
In this given report there is a discussion regarding formulation of a rationale for the
particular project. So, it is necessary for company to select the particular and also effective
project.
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TASK 1
1.1 Interrelationship among the tourism business and hospitality and also the wider travel
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Interrelationship between hospitality and tourism businesses
Name- XYZ
Date- 25th October, 2017
The hospitality and tourism both are interrelated with each other. The hospitality industry
provides services like for an instance transportation, beverage, accommodation, leisure and
recreation. The facilities related to tourism in the travelling to the world diverse attraction
places. It is necessary to the hospitality firms to assure about that the visitors should be
comfortable and also enjoy their staying in hotel. There are some of the following points that
show the relationship among tourism and hospitality.
Enhancing sales- The tourism and travel industries and also hospitality helps in
enhancing the sales and also productivity for the each other. In past some years, in New york
city, the tourism and travelling related activities increased from the 52 million to 60.8 million.
With the help of this, in the hotel industry, the hotels are increasing occupy to the 87.5% to the
91.1%. From enhancing the popularity in the travel and tourism sector, the hotel are occupied
the hotel industry. So, from this, the development or growth of hotel industry leads to the
enhancing the activities of tourism at the specific location. In context to this, PKF hotel experts
provides the good services and facilities to the visitors or any other guests like clean rooms,
transportation, food facilities etc.
Enhancing the visitors attraction ranges for tourism- The productivity and growth in
the hospitality maximise the destinations or can say attraction places for tourists, so that they
can visit with the full comfort of transportation, good as well as the accommodation facilities.
With the help of hospitality, the demand of products as well as market are enhanced from the
business of tourism.
For an example- Science Museum is a tourism attraction place.
Develop each other- The hospitality and tourism both sectors are helps each other in the
development of business (Tsang, 2011).
Like for an example, the PKF hotel experts has the proper knowledge regarding the
expectations and demands of visitors with the help of agencies of travel and tourism in all over
the world who can interact or communicate directly with prospects.
The tourisms business provides the advice or suggestions to the industries related to
hospitality that for the growth and productivity of business they require top make some changes.
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In addition to this, the hospitality enterprises provides a suggestions related to make
improvement or increasing the services and facilities of tourism enterprises. From this the
productivity and profitability of tourism firms and also hospitality will be enhanced.
Example- For developing the tourism, the government of United Kingdom do some effective
promotional activities in order to retaining the business and also develop some attraction places.
Developing the brand name of each other- With increasing the level of profit, the
hospitality and tourism firm both have to facilitate the brand name of each other company. If the
hotel is suggested by the any tourism enterprise, then the customers or visitors incline to rely on
that hotel (Stephenson, 2014). So, in context to this, it is the responsibility of hotel is to provide
the satisfactory services top its customers. It will helps in enhancing the loyalty of customers
towards the tourism enterprise and also hotel both. The services related to buying of PKF hotel
experts enhanced the level of satisfaction from visiting the city. So, from this the tourist again
avail the services of this hotel and tourism firm.
Example- For development of hospitality, the hotel does the more promotional activities in
order to increase their sales. The hotel industry provides the good quality of services to the
people.
Maximising number of consumers for hospitality industry- The large number of
visitors of consumers who are awake and also willing to buying the services related to business
of hospitality because of enhancing the activities of travelling business. To attract the
customers, it is necessary for the PKF hotel is to introducing and also providing the attractive
schemes and also offers to the visitors. From the the sales of hotel will be enhanced. Customers
are awake of PKF hotel experts as the service provider of the luxury accommodation. In
regards to this, the business of tourism identifies the specifications that can be beneficial for the
specific consumers. It helps in enhancing the number of people who are capable to visit this
hotel.
Mutually benefited- The income and profitability of the hospitality and also tourism is
based on the development of one another. An agencies of the tourism with the high connections
with the business of hospitality leads to enhancing the hotel sales. The productivity and growth
of PKF hotel experts helps in increasing the sales off tourism business packages.
Business between each other- Generally, the tourism and hospitality industries
conducts or running their business between each other. Both are earn money and also provides
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the support to each other. The the agencies related to the tourism enhance the sales of
hospitality enterprises. With the help of this the number of visitors or consumers will be
maximised. It neglects the service wastage because of the reduction of consumers as
comparison to other rivals. The agents of travel industry suggest the hospitality firms to visitors
and in return to it, travel agencies are also earning money from this.
Support in marketing activities- The activities related to marketing of tourism and also
hospitality are provide their support to each other. The tour agents do the promotion of visits to
the PKF hotel experts by showing its specifications to visitors. It will helps in enhancing the
profitability and also productivity of business. The travelling agency promotion can increasing
with the promotion of PKF hotel experts. In context to it, particular goods and services which
are offered through each other are increased and also interact with co1.1 Interrelationship
among the tourism business and hospitality and also the wider travel consumers from
supporting each other.
CONCLUSION
It has been concluded from the given data that hospitality management is very important in the
hotel sector. Under this studied about the interrelationship between the hospitality and also
tourism business in context to travel and tourism.
TASK 2
2.1 Implications of integration to the industry of hospitality
It is necessary that the services which are given by the PKF hotel experts remain the same
in all the places, if there is any thing minimum then in this case it can affect the goodwill of
hotel. An integration is helpful for enhancing the development and productivity of business. It
means the compounding the activities related to the property management with any other
activities for the purpose of improving the effectiveness and also efficiency of business
operations. An integration is the main need for the hospitality industries. But the main issues and
and problems in an integration system are failure and security (Lashley and Morrison, 2013). The
two types of integration are given below as above:
Vertical integration- It refers that when a business firm purchase its suppliers from the
another business organisation in the channel of distribution. It helps in reducing the cost of
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operations and also enhance the level of profit. A vertical integration is traditionally specialised
through the lateral, backward and also forward integration. A forward integration is a procedure
by which one hotel is merge with the other hotel among with the channel of distribution. The
hotels do the agreement with the travelling agencies (Tsang, 2011). The PKF hotel provides the
good and also rooms to the visitors or people by offering them special rates.
For an example- A chain of the hotel can decide to purchase its own agency of travelling
for the purpose of increasing its business at the market place.
On the other hand the backward vertical integration refers that a business firm buys from
its suppliers and also then use the inputs for the advantage for PKF hotel experts. The tourism
agencies buys a hotel and also a airline firm. The PKF hotel expert hotel provides all the services
and also good facilities to the customers. It has many or large number of hotels.
A lateral integration needs to the merger of two business enterprises which are directly
connected to providing the services or products.
Importance of branding and pricing policies
Both factors branding and pricing strategy play a big role in increase the sale and profits
of a company. Price is known as one of the sensitive elements of a product as this is the one
which attract large number of customers and help them in take decision whether to buy the
product or not. Like the same positive brand image attracts more number of customers to buy the
products of that brand.
Increased globalisation has changed the activities of business a lot. Due to increase
number of technologies today enterprises use various social platforms to influence and attract
large number of customers to buy its services and this has changed the hospitality sector a lot.
Horizontal integration- It is necessary for the PKF hotel expert want to increase its
customer base and also provides the benefits to the society or the economy of country by
increasing the profitability and also productivity of company. The horizontal integration means
that when two or more than various industries work together and also develop a large business
firm. It helps in increasing the number of consumers and also helps in enhancing the goodwill of
business.
Example- There is a comparison among the two hotels and these are PKF and Marriott
hotel. These two industries work for increasing their sales.
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2.2 Integration has impacted a business of hospitality
The benefit of this integration gives the competitive advantage to the hospitality industry.
From the combination of the core competencies of two or more than two business firms helps in
providing the satisfaction level and also attracting the more number of consumers or visitors.
With the help of an integration an economies of scale can achieved easily (Stephenson, 2014). It
will helps in minimising the operating prices and also increasing the profit level of company. The
vertical as well as the horizontal integration both can impact on the business strategies of
business. An impact of the horizontal integration can enhance the effectiveness of the work.
From the merger of two hotels, travelling cost will be minimized.
The vertical integration can also impact on the business. Its positive impact is increasing
investment and also introducing the new services related to travelling. It will helps the
consumers to differentiate the services of Merritt hotel with its challengers. It will helps in
enhancing the productivity and also goodwill of business. The some other impacts of an
integration on the hospitality business are given below as above:
Enhanced attraction- The Marriott International hotel integrated its hotel for enhancing
the large number of tourists destination. Many visitors are stayed in this hotel (Medlik, 2012). An
integration of the many number of specifications in increasing the operations of its hotel and
along with its popularity in all over the world. With the help of integration it provides the good
and the attractive service facilities to the consumers.
Enhancing the level of customer satisfaction- It enhances the the consumer satisfaction
due to consumers or visitors are ready to pay the good money to hotels. With the help of this the
VAS (Value Added Services) will be enhanced for the consumers but all visitors are seeking the
luxurious accommodation by paying en extra charge.
Eg- If PKF Hotel will provide the good satisfaction to customers by providing them
good quality of services, then it will be beneficial for business and the hospitality business will
be increased of this hotel.
Added some value to service- An integration of the same business exchange the value of
the main services and also product of hotel. The values is added in the core services as well as
products of luxury accommodation of hotel through an integration business of the many roof top
parks and restaurants.
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Enhancing the power of customer spending- The purchasing power of the customers is
increasing because of the expenses made in the many different business that are related to the
integration of the hotel.
Control of Sub sectors- It can develop by giving the better and also good quality
services which is not easily available with the any one through doing for the hotel (Lashley,
Morrison and Randall, 2014). It minimizes the total number of consumers. For example: If a
hotel offer better and effective services to its customers at affordable prices than individuals will
choose that hotel in any case. Even if sometime hotel increase in prices of its products and
services than in that case also they will choose that hotel because of its effective services.
Economies of scale: This refers to that benefit or advantage that a company get due to
changes arise in scale of business activities which results in decrease final cost of product and
increase output of products. This also apply in hospitality sector and due to this different hotels
which offer variety of services to visitors gain a increase in number of its profits. For example,
when number of visitors increase then it enhance the profits of hotels and decrease overall cost.
From any of the integration the cost will be low and profit will also be enhanced. It will
also helps in expanding a business in to the new countries and also cities. With the help of this,
hotel can provide the new and also attractive services to enhancing its consumer base for
increasing the profit level. From this the reputation of hotel will be good at the market place and
also the development will be increased.
TASK 3
3.1 Formulate a rationale for selected project
Marathon is a small size hotel and it provides food facilities to the people. The
development of the proposed proposal for for the Marathon hotel business organisation
formulated according to the analysis of the potentially of the market. It is necessary to conduct
the research and with the help of this, new company will easily know about the new products and
services which are provided by the other competitors in the market and at the same cost. It is
necessary for they company to represent its market share, so that the consumers are fully
satisfied from its services. In this three main stages are includes development, design and also
operations (Kelly, 201O). Under these, some of the essential points are included which are given
below as above:
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Concept of product service- In the season of summer, Marathon hotel will proper the
special and also attractive offers to the customers and also take care their needs and wants. In
regards to it, the management of this hotel will also make the beverages and food items on the
basis of the season or according to the demands and tastes of consumers (Darcy and Pegg, 2011).
Along with this, many other supporting facilities which this hotel can be give like for an instance
gym, bar, pubs, transportation, facilities related to entertainment, guide, park for the children
and many other. It is necessary for the hotel is to segment its customers ion the basis of their
needs.
Target market- The target market of the Marathon hotel is the dishes of Summer special
which are offer to the high and also medium income level group people. With the help of
segmentation, this hotel can target large number of people at the different market place. From
this, hotel can serve its services to the customers in an effective and proper manner (Mahony,
2015). From the segmentation, the management of Marathon hotel can identify the needs and
takes of people and then give them all the services and products on the basis of their needs.
Location- It is necessary for the company is to select the particular location for
establishing a business. With the help of research, it has to evaluate many different types of
visiting (Kelly, 2010). Location of hotel should be proper so that every one can reach to the hotel
with out any kind of difficulties.
Operating model- For operating and also owned a business in an effective manner, there
is a requirement for the hotel to choose the best operating model. In relation to the Marathon
hotel, an operation model can be the model of business operations. With the helps of this, the
employees can do their roles and responsibilities in a proper way (Lashley, Morrison and
Randall, 2010). In context to this, it is necessary for the manager of hotel is to recruit the capable
and goods staff or candidates who can perform well their jobs and also provides the customer
service of guests or visitors.
Designing- To attract the consumers towards the company, it is necessary for the firm is
to make attracted the rooms and also provide the good facilities to the customers. It will be
beneficial for them. The services which hotel is offered will be hygiene and also attractive so that
consumer will be avail more. An exterior as well as interior of a hotel should be good so that it
will provides the best experience to visitors and also makes their travelling or tour memorable.
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3.2 Prepare a plan for hospitality business
The most important or necessary part of the hotel industry is its interior (Nwosu, 2014).
To increasing the sales an goodwill of business, it is necessary that an infrastructure of hotel
should be good. It plays an important and main role in retaining the business or hotel at market
place by enhancing its customer service. In the plan for the hospitality business includes three
stages:
Stage 1- Development- In this some of the main points are includes which are given
below as above:
Concept- The general or basis idea of this projects is that increment in the service and
hotel industry. In the United kingdom, there are many pubs, restaurants and also the leisure
companies. It provides the large number of employment to the local people. The main objective
of this project is to providing the job opportunities to the local people and also increasing its
profit level.
“The vision of Marathon hotel is to be leading company in the hotel industry”. It is
necessary for this hotel is to provide all the services and good according to the needs and
demands of consumers.
Market research- It is important because with the help of conducting the research
programme, this hotel can know about its existing competitors, present products in the market
and also the marketing strategies (Brookes and Becket, 2011). It is necessary for this hotel is to
conduct the research of markets by following all the steps. In the market research there are some
points are including such as:
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 Choose the area of research.
 Developing the aim and objectives of research.
 To conduct a literature review.
 Select the best methods of collection of data like primary and secondary.
 Gathering a primary data
 Analysis of data
 Reaching to the end or conclusion
The tools and techniques which Marathon hotel used is PESTLE (Political, economical,
Social, Technological, legal and environmental). With the help of this, it can do its business
operations in an effective or proper manner.
Target market- The Marathon business organisation target the market with the help of
segmentation. From this, management can target people easily in an effective and proper manner.
With the help of this, company can easily target the people (Darcy and Pegg, 2011). It will helps
in increasing the profit level and productivity of business.
Location- The selected or best location for the Marathon hotel is the East London. The
location of a business impact more on the business. If the location of hotel should be proper then
in this case more number of people will be come and avail the services of the hotel. So, in
context to this, the location of hotel is in the middle city. If in case hotel is in the out of the city,
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Illustration 1: Steps in market research
Source: (THE MARKET RESEARCH PROCESS: 6 STEPS TO
SUCCESS, 2017)

then it impacts bad on the business. So, it is necessary that the location should be specific and
also proper.
Scale- Marathon hotel is a small size and in this total number of beds are 25 with eh
facilities of clean rooms and air conditioner facilities. Along with this, it also provides the
lodging, beverages and also food facilities (Stephenson, 2014). So in context to expand the
business, it is necessary for the hotel is to know about the marketing strategy and so its business
related activities.
Funding- For the new project, Marathon hotel arrange the funds by taking loans from
banks, from its investors and through its own money. Here is a budget of the hotel:
Current Period Year to date
Actual Budget Last year Actual Budget Last year
Rooms Revenue £150 £180 £100 £700 £670 £630
Telephone
expenses
8 8 6 44 42 40
Gift shop
expenses
10 8 8 45 45 39
Miscellaneous
expenses
5 5 5 20 20 20
Restaurant
revenue
17 17 15 75 73 70
Beverages
revenue
8 8 8 30 28 30
Subtotal of Food
and Beverages
revenue
25 25 23 105 101 100
Total of hotel
revenue
48 46 42 214 208 199
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Products and services- Its services and goods are food items, 25 AC room facilities,
guides, transportation, telephone etc.
Licensing- It is very necessary for doing any work or activities,. To running a business
government provides the licence to company. It is a legal document.
Stage- 2
Design- In this includes the brand name of the hotel, interior or exterior, sustainability
etc. It is necessary that the interior of hotel should be attractive so that more and more customer
swill come.
Stage- 3
Operations- In this the HR manager plays an important role. For Marathon hotel or
hospitality related activities, Manager recruit the best and capable employees after then
providing them good training for increasing their working efficiency. IT is the duty of HR
manager is to understand all the policies of company to the employees and also follow all the
regulations which are developed by the government (Lashley, Morrison and Randall, 2012). If
there is any kind of issue to any person, then in this case manager should solve them out in an
effective or proper manner. HR manager also helps in making the promotional or pricing
strategies for business.
CONCLUSION
It has been concluded from the above business report that hospitality helps in enhancing
the profit level and also development of the tourism industry. The PKF hotel expert provides the
better quality services to its customers. In this present business report studied about the
interrelationship among the tourism industry and also the hospitality. There is also a discussion
regarding an implications of the integration to the industry of the hospitality. Under this business
report also studied regarding the develop a plan for the purpose related to the hospitality in which
involves the necessity of business in context to the allocation of human resource. In this given
business report studied about the formulation of a rational for the selected particular project.
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REFERENCES
Books & Journals
Brookes, M. and Becket, N., 2011. Internationalising hospitality management degree
programmes. International Journal of Contemporary Hospitality Management. 23(2).
pp.241-260.
Darcy, S. and Pegg, S., 2011. Towards strategic intent: Perceptions of disability service
provision amongst hotel accommodation managers. International Journal of Hospitality
Management. 30(2). pp.468-476.
Kelly, C., 2010. Analysing wellness tourism provision: a retreat operators' study. Journal of
Hospitality and Tourism Management.17(1). pp.108-116.
Lashley, C. and Morrison, A., 2013. In search of hospitality. Routledge.
Lashley, C., Morrison, A. and Randall, S., 2012. memorable meal ever! Hospitality as an
emotional experience. Culinary taste, p.165.
Lynch, P. and et. al., 2011. Theorizing hospitality. Hospitality & Society. 1(1). pp.3-24.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Nwosu, B., 2014. Hospitality education: sustainable empowerment opportunities for Nigerian
women. Worldwide Hospitality and Tourism Themes. 6(1). pp.62-76.
O'Mahony, B., 2015. Exploring the impact of the constructs of the three-domain approach on
private social and commercial hospitality provision. Research in Hospitality
Management. 5(1). pp.29-35.
Stephenson, M.L., 2014. Deciphering ‘Islamic hospitality’: Developments, challenges and
opportunities. Tourism Management. 40. pp.155-164.
Tsang, N.K., 2011. Dimensions of Chinese culture values in relation to service provision in
hospitality and tourism industry.International Journal of Hospitality
Management. 30(3). pp.670-679.
Online
THE MARKET RESEARCH PROCESS: 6 STEPS TO SUCCESS, 2017. [Online]. Available
through: <http://www.mymarketresearchmethods.com/the-market-research-process-6-
steps-to-success/>. [Accessed on 25th October, 2017].
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