Attracting (6- Number of People)

In the initial stage, revenues can be earned by offering high-quality products and services at affordable costs. Once a restaurant is established, it can increase prices and services to attract more customers and provide them with high satisfaction.

Hospitality Provision
in
Travel & Tourism Sector

Table of Contents
Introduction................................................................................................................................4
Task 1.........................................................................................................................................4
1.1 Interrelationships between hospitality and travel and tourism businesses......................4
Task 2.........................................................................................................................................7
2.1 Implications of integration to the hospitality industry.....................................................7
2.2 How integration an affect hospitality businesses............................................................8
Task 3.........................................................................................................................................9
3.1 Development of rationale and justification of decisions linked to target market ...........9
3.2 Plan for a hospitality businesses including operational requirements of the businesses
.............................................................................................................................................12
Conclusion ...............................................................................................................................14
References................................................................................................................................15

Illustration Index
Illustration 1: Mapping of tourism and hospitality indusries.....................................................5

INTRODUCTION
Hospitality industry has been emerging out one of the leading service sector in the
business world. It has significantly contributing in the economic growth and development of
a country with the rise in interest of tourism among people. It also provide opportunities for
foreign exchange and several employment opportunities. Hospitality industry is directly
linked with travel and tourism, to fulfil the demands and needs of guests, hospitality
provisions are studied and applied within the organisation. The present report study about the
relationships between both industry and also depicts the analysis of the diversity of services
and allocation of resources. Along with this, a hospitality business plan will be discussed in
this unit with the context of different examples.
TASK 1
1.1 Interrelationships between hospitality and travel and tourism businesses
Hospitality industry is growing with rapid rate and acquiring major portion of service
industry in order to provide tremendous opportunities (Atalay, Hortaçs. and Syverson, 2014).
It comprises of organisations which cater premium hospitality services, such as
accommodation, food and catering services, bars, night clubs, leisure, transportation, holiday
parks and many other services to guests. Moreover, there is strong interrelationships with
tourism sector and hospitality industry, both industries highly contribute in the growth of a
nation. In the modern era, to attain higher degree of customer satisfaction level has become
crucial aspect for businesses (Bharwani and Butt, 2012). Furthermore, it can also be argued
that with the change in customer's needs and demands, current products and services
delivered to them also need some modifications and needed to upgraded. Nowadays, people
seek for better quality hospitality services at convenient price rates. It has been estimated that
there are over 180,000 hospitality and leisure establishments in UK. Moreover, it has been
recorded that there are more 2 million people are recruited to render premium hospitality
services.
Apparently, hospitality and travel and tourism industry are directly linked to each
other. They are responsible to cater premium services to guests, customers and travellers.
Many organisations are making significant efforts in order to avail lavish tour and hospitality
services to tourist. Generally, tour and tourism is leisure activity in which people travel and
explore many incredible destinations across the world for the purpose of recreation and
leisure (Brotherton, 2013). There is vital role of hospitality management in the tourism sector
in order to provide excellent services to guests and gain their trust. In UK, over 46,000 hotel,

restaurants and guest rooms are there with the turnover of £40 million availing premium
facilities to visitors. There are three main categories of hotels and accommodation
establishments, that is on the basis of number of rooms, locations and number of facilities
rendered to guests, in accordance to which tourist hospitality services are availed. Also, they
are ranked in the range of 1 star to 7 star hotels according to quality of services and products
they availed. The composition of hospitality sector is given below: Restaurants: It is the place, where customers are facilitated to have fine dining with
the availability of variety of foods and drinks. Moreover, there are also many facilities
which are provided, such as bar, leased pubs, nightclubs and etc. Hotels: Those places which avail accommodation related services along with food
services are known as hotels. In the modern era, many hotel are providing AC room
facilities, spa facilities and tourism facilities(Chon and et. al. 2013).
 Catering services: It includes businesses that provides food services and other related
services in parties,conferences, and events.
Moreover, there are also other travel related businesses which is offered to customers
in the form of holiday and tour packages. There are many kind of tour packages which are
made according to particular tourism destination, accommodation, food facilities and on the
basis of budget of tourists. Services which can be provided by tour operators like, Thomas
Cook are mentioned below: Travel services: It comprises of holiday, business or other packages which are availed
to tourist according to particular destination (Cook and Marqua, 2014). Furthermore,
in accordance with individual;s budget, packages are made and offered to them.
 Tourism services: Services related to accommodation, transportation, food and
visiting attractive places are linked to tourism destinations. According to
requirements, needs and demands of customers, customized services are provided to
them.
So, it is the responsibility of manager of hotels and restaurants to deliver premium
class services to tourists, in order to obtain high satisfaction level. However, in order to gain
substantial benefits and customer satisfaction, organisations need to deliver quality services
according to standards of care, then only they can attain success and growth. Therefore, there
is hyper competition in the tourism industry with the inclusion of hospitality provisions. In
UK, large numbers of international hotels are there which is availing premium tour facilities

and hospitality services. Hospitality industry is expanding with swift pace and contributing
large portion in the development and growth of economy of the UK. There are also many
other businesses which are operating in the hospitality industry, like resorts, bars,
transportation and etc. Tourism businesses offers 24 hours facilities, so that customers can get
better tour services. Moreover, the interrelationships between hospitality and tourism industry
can be depicted as follows:
Illustration 1: Mapping of tourism and hospitality indusries
Sources: Cook and Marqua, 2014
With the above mapping of hospitality and tourist industries, it can be inferred that
activities that are involved in tourism sector are cultural activities, sporting and recreation
activities, passenger transport, travel agency and other reservation activities. On the other
hand, activities which are include in hospitality industry are event catering, food services,
licensed clubs and other services (Cummings and et. al., 2013). There are many services, like
restaurants, hotels, beverage serving activities, camping, short accommodation, convention
and other activities which are in common with both tourism and hospitality services and
needed to avail visitors in a significant manner. The Hotel Hilton, UK is one of the leading
international hotel chain which is operating in many countries and manages broad spectrum

of portfolio of restaurants, hotels and other lodging facilities and providing leisure facilities to
visitors.
Furthermore, the interrelationships between wider travel and tourism businesses and
hospitality sector has direct influence on the development of the UK. Increased sales
revenues and profits significantly contributing larger portion in the economic growth, because
of increase in investment power of people in tourism. People have become so aware about
many tourism destinations and advanced technology that they can easily book their tickets
and travel the world (Filimonau, Dickinson and Robbins, 2014). Moreover, hospitality
organisations also need to get involve with other intermediaries, like suppliers,
manufacturers, wholesalers and other people who provide assistance to them, in order to avail
finer services and increase profitability in the competitive business world. Thus, hospitality
provisions play vital role in the tourism businesses, both sectors are significantly increasing
the overall sale revenues, sustainability and profitability in the competitive market.
TASK 2
2.1 Implications of integration to the hospitality industry
Integration can be defined as process which combine people of different circles into
into an equal and unrestricted association within the organisation. In addition to this,
incorporation of two or more organisations into one unit is known as integration. Integration
can be of two types, which are mentioned below: Horizontal Integration: It is a kind of strategy in which an organisation take over or
acquire some other organisations. Moreover, it is a process of integration of one
organisation with another at the same level of production. In this entire process, firms
take over the liabilities, shares and assets of other company. In accordance with the
provided case scenario, the Hotel Hilton, UK need to bring changes and modifications
in its services in relation with the needs and demands of customers. The hotel Hilton
can make its portfolio strong and effective enough with the assistance of horizontal
integration (Jones, Hillier and Comfort, 2016). The sales revenues and market
position of the hotel will ten to increase and strengthen. The Hotel Hilton will be able
to increase its brand position in the volatile marketplace, once it get merged
horizontally. There will be great benefits obtained by the hotel, such as its efficiency
will increase, overall costs will be lower down and also strong customer base will be
retained.

 Vertical integration: In this process of integration, business organisations expand
itself into the areas of different services and products. Moreover, in the process of
vertical integration, an organisation of different services and supply chain will be
acquired which will provide huge benefits. For instance, a manufacture acquires its
suppliers and other intermediaries (Kotler and et. al., 2016). There are two types of
integration, that is backward and forward which can be adopted by the Hotel Hilton to
have control on its business activities. Backward integration is done to exert control
over its subsidiaries which is providing input in the process of production. On the
other hand, forwards integration is done to exert control over its distribution centres
and retailers, whereby the products and services are sold in the market. The Hotel
Hilton can control its input with the help of backward integration.
The hotel Hilton can integrate with many travel agents, like Omega travels, Hays
Travel and etc. in order to attain success and increase profits. By getting integrated with these
travel agencies, marketing and advertising activities will also increased which will grab the
attention of tourists. Moreover, it will also develop healthy relationships with several other
business organisations. It will also make other visitors to visit the hotel as they get influenced
by its innovative services and products. Furthermore, the Hotel Hilton will also be able to get
engaged with many other intermediaries and increase its productivity and sustainability. BY
the process of integration, its brand image will also increase, which tend to attract more
customers and tourist (Milev and et.al., 2014). Moreover, Hotel Hilton can produce
diversified range of services and products in different segments across the world. It will also
be able to gain competitive advantage and enhance its strategic capabilities.
2.2 How integration an affect hospitality businesses
There is great impact of integration process on the business organist ions. There are
two different types of integration, which can be adopted by business enterprises are,
horizontal and vertical. Integration strategies have direct influence on the Hilton hotel and
tourism industries. There is both positive and negative impact on hospitality businesses.
There will be positive impact on the Hotel Hilton when it get merged with other organist
ions, as it will increases sales revenues and customer satisfaction. Its also aimed to promote
best services and product through advertising and promotional activities, so that people will
come to know more about their services and products. When Hilton hotel merged with other
hospitality business organizations, they will have great opportunities to increase their sales by
low investment. They will get new innovative idea from other firm which will help them to

develop a new hotel (Navickas and Malakauskaite, 2015). They can provide luxury services,
including spa facilities, catering, pub, nightclubs, resorts ans many other services to
customers by charging reasonable rate. Marketing of these services can be done in different
way, in low pricing also they can promote their hotel. Advertising of their hotel can be done
in different and innovative way which will attract many customers. Moreover, through
integration they can also provide new product and best services at lower prices in order to
increase profitability of Hilton hotel. Advertising activities play important role for attracting
customer, as they come to know more about services which are provided by hotel. There can
also be various types of food facilities availed for different culture of people as different
customers have different tastes and choices.
The Hotel Hilton can also suffer from negative impact of integration , as they have to
share their profits with other business, which will lead down overall profit of Hilton hotel.
Thus, there brand get famous all over but there profits will lower down. Sometimes, disputes
with integrated business organisation's employees can also bring loss in the profitability of
Hilton hotel and it decrease the competitive advantage (Platonova and Krivosheeva, 2015).
Furthermore, during the time of off season, hotel may face high loss and it may take time to
recover all these losses. It may happen that, all hotel rooms are booked and certainly booking
come from other business. Which will weakens the relationship with other business
organisations and affect their image. Moreover, at the time of renovation Hilton hotel may
find difficulty to provide comfort service to their customer which will decrease its popularity
and may cause high losses. When waiters are on holiday, they have to face many problems in
providing services. Sometimes, lack of management will also affect their decision and
operations and will become the reason for development of disputes between them, which
results in the decrease of its productivity. So, there is there is both positive and negative
influence of integration on the Hotel Hilton which will affect its profitability.
TASK 3
3.1 Development of rationale and justification of decisions linked to target market
The development of rationale for Hotel Hilton can be carry out as follows:
Stage 1: Development Concept: A new business plan for launching a restaurant will be developed, in which
its name will be 'Food Junction' and it will be having 'vintage' theme. People will
going to have vintage experience. The rationale behind choosing this project is that

many people will get automatically get attracted and and can experience its beautiful
interior décor and variety of foods (Shi and Liao, 2013). In order to gain competitive
advantage and increase market share, innovation is necessary. In order to obtain
leisure, recreation and lavish services, people travel the world and fulfil their
fascination. Moreover, in the realm of hyper competition, it is necessary to evolve
new innovative ideas while establishing a new restaurant. Market Research: An adequate market research should be carry out prior
implementing the business plan. As, it has been observed that hospitality industry is
growing with swift pace, but also facing an intense competition. Moreover, to survive
in the marketplace, it is required to avail quality services at convenient price. An
individual's opinion and views are required for making improvements in the
hospitality and tourism facilities of the Hotel Hilton. Target Market: Each organisations should determine their target audience and market
in a significant manner where they can avail their services and products (Solnet, Kralj
and Baum, 2015). However, target market for 'Food Junction' will be middle income
level group of people And target customers will be youngsters who fall under the age
group of 20-45. So, that people who look for their value of money can get high
satisfaction. Location: The new restaurant will be launched in the London as it is the most
popular tourism destination of the UK across the world. The King street will be best
preferable location, where large number of visitors can get attracted. Scale: The restaurant will be of large size, with the facilities of 250 rooms, whereby
150 will be AC rooms and other will be non-AC. There will be availability of
different suits, along with premium services. Furthermore, there will be spacious areas
available for playing interior games. Funding: The owner of the 'Food Junction' will accumulate large sum of money by
taking bank loans or borrow money from investors (Surugiu and Surugiu, 2013).
Moreover, he can also borrow money from its stakeholders, including suppliers,
manufactures and others to manage all business operations in an effective way. Products and services: In accordance with demands and needs of customers, products
and services will be delivered to them so that they can get satisfaction and enjoy
various facilities provided to them. In addition to this, it is also concerned to avail

comfort and pleasant services to travellers who is away from home. There will be
facilities of fine dining, pool, sight seeing, leisure, catering and other services. Also,
quality services need to availed and after that customer's feedbacks should also be
taken into considerations. Licensing: It is very necessary to get license and manage all work in the business.
The 'Food Junction' also need to apply for its licensing. Furthermore, quality and
prices of the food items should be maintained. The restaurant should get legal
membership in an appropriate manner.
Stage 2: Design Ambience and interior décor: The 'Food Junction' will be decorated according to
vintage theme which will grab the attention of customers (Thorleifsson, 2016).
Furnitures will also be according to the theme and properly arranged in the restaurant.
Further, friendly and helpful staff members will be able to serve their guest and deal
with their issues. So 'Food Junction' need to make huge investments in the interior
designing of restaurant. Culture: The culture of the restaurant will be according to vintage theme. Antique
articles will be placed in the restaurant which will give the feel of vintage. Moreover,
colour combination will also be matched with the theme, which will grab the attention
of tourist and other people. So, there will be thriving culture, in accordance to which
core values will be designed. Brand: In order to enhance its brand value, the 'Food Junction' is continuously aimed
to render quality products and services which can be done by gathering the attention
of people by providing discount on food items and by making efforts to improve its
hospitality services, so that large number of people can get attracted (Thorleifsson,
2016.). Interior and External: The 'Food Junction' will have high quality of furnitures which
will provide leisure and relaxation to guests. Like, there will be relaxing rooms, Ava
sofas, coffee tables, lounge areas and comfortable wooden chairs in the restaurant.
Moreover, there will be separated garden in the hotel, where people can relax and
enjoy. Functional areas: There will be diverse functions in the restaurant, according to
which people will be hired. Separate areas will be there for Front office management,

kitchen cashier seat house keeping department, pubs and bars, whereby people will be
allocated accordingly (Weber, and et. al., 2013). The staff members will perform their
duties according to their roles and responsibilities. Customer Flow: It will be monitored according to room spacing, closed circuit
television, time lapse, number of rooms allotted to customers and with the help of
smartphones. Link to target market: Main target audience of the 'Food Junction' will be youngsters,
kids and couples. Customers with individual needs: In accordance to requirements and needs of
customers, they will be offered premium services at affordable prices.
 Sustainability: The 'Food Junction' will keep the prices constant and improve the
quality of services, so that more number of people will get attracted.
3.2 Plan for a hospitality businesses including operational requirements of the businesses
In order to establish new project named, 'Food Junction' an effective plan should be
developed which can be done by identification of operational requirements to ensure growth
and sustainability in the competitive market place (Wijesinghe, 2013). As, there are many
challenges and issues can come across while opening a new restaurant. Moreover, proper
arrangements also need to make according for allocation of financial and human resources.
The role of human resources will be distributed in accordance to their specific roles and
responsibilities. The following business plan for the 'Food Junction' will be taken into
consideration in accordance to operational requirements;
Staffing requirements according to specific functional areas
The HR manager of the 'Food Junction' need to assign roles to its staff members
according to the operational requirements. Chef: The chef of the restaurant holds maximum responsibility, as he is the person
who will cook variety of dishes for its customers. In 'Food Junction', there will 6-7
chefs who will prepare food of different regions. For that, highly skilled and talented
chef will be hired who can make different cuisines of food. Moreover, with the
change in demands, needs and tastes of people, he should be able to makes dishes.
The way of presentation of food will also attract many people and influence them in
an effective manner (Milev. and et.al., 2014).

 Manager: A manager should also be there, who can manage and control operational
activities effectively. Candidates who have work experience of 4-5 years and
qualification of post graduate from higher university of London will be hired, so that
they can easily deal with all issues. He will be responsible to fulfil and address needs
and demands of tourist in best possible manner. Appropriate decision making and
communication skills are required in the manager in order to handle whole staff. In
the 'Food Junction', there will be 2 managers who will handle all activities. Bartenders: The 'Food Junction' will also offer bar facilities along with food services.
Drinks will be served by bartenders, who should have adequate knowledge of a;;
kinds of drinks, such as cocktails, soft drinks and mock-tails. So there will be 2-3
potential bartenders will be hired for this purpose. Other staff members: There are many other operational functions which need to be
carried out by staff members. Housekeeping staff will also be hired who will be
responsible to clean and maintain the restaurant (Brotherton, 2013). Along with this,
waiters and helpers will also be appointed who can serve better services to guest.
Tourist guides will also play important role, as they will be responsible to guide and
direct tourism locations to visitors.
Staffing issues related to seasonality
While carrying out all business operations of restaurant, major problem which is faced
by restaurants in peak season is poor management and lack of skills of workforce. So, the
businesses need to make sure the availability of right employees during the high time.
Moreover, with the change in tastes and choice of customers, staff of the 'Food Junction'
should be able to fulfil their demands. There are several issues and challenges can be arise in
the workplace because of the differences in the religion, age, language, nationality and
customer services which need to be handles and managed in an effective manner.
Cultural diversity
The restaurant need to develop a culture which will promote equality and coordination
in between employees, who are of different backgrounds, religions and demographics.
Moreover, the manger should also be able to develop team working skills among its
employees, in order to obtain growth and success.
Recruitment policies

There should be effective recruitment policies, so that right candidate can be selected
on right time. Further, advertisement and promotional activities can also be performed to
invite people for recruitments.
Compliances with legislations
All employment laws, equality laws and other acts should be complied by the 'Food
Junction'. It also includes, Health and Safety Act, Consumer protection Act and Employment
Act which will protect the rights of customers (Filimonau, Dickinson, and Robbins, 2014).
Promotional and advertising activities
The 'Food Junction' need to organise various advertising and promotional campaigns
for creating awareness among people about food services they are availing. Sales promotion
is also an effective way to promote its services and attract customers by providing discount
offers.
Pricing
By using moderate pricing strategy, more number of people can be attracted due to
which large revenues can be earned at initial stage. Moreover, high quality products and
services at affordable costs will attract more customers and provide them high satisfaction.
Furthermore, once its restaurant get set up, it can increase its prices and services.
CONCLUSION
Hospitality provisions are crucial aspects which need to be undertaken by travel and
tourism sector organisation. From the above module, it can be concluded that in the era of
immense competition in the service sector, tourism industries need to undertake the
assistance of aspect of hospitality management. Moreover, it is also inferred that, there can
be better interrelationships made in between tourism sector and hospitality industries with the
help of integration of businesses, so that hight growth rate and success will be attained.
Furthermore, it also recommended that effective business plan should be developed by the
Hotel Hilton while establishing new restaurant and carrying out business operations.

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