The Relationship Between Travel and Tourism Sector and Hospitality Industry

The report demonstrates that the travel and tourism sector are inseparable from the hospitality industry. Organizations in this field focus on providing quality services to customers while maximizing profits and minimizing costs. The integration of businesses is also crucial, as it enables companies to combine their resources and reduce operational costs. A case study of a restaurant facility at Hilton illustrates how food and beverage services can be provided to both lodging customers and local residents. The report concludes by emphasizing the importance of human resource management in the hospitality industry.

Hospitality Provisions in
Travel and Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.1 Interrelationship between travel & tourism sector and hospitality industry.......................1
TASK 2............................................................................................................................................3
P2.1 Implications of integration to the hospitality industry........................................................3
P2.2 Impact of integration on hospitality business.....................................................................5
TASK 3............................................................................................................................................8
P3.1 Develop hospitality business and its decision-making.......................................................8
P3.2 Evolution of a plan for hospitality sector..........................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality industry is a wider term which incorporates accommodation, lodging,
restaurant, room services, transportation, etc. and depend on income of the persons. Hospitality
industry plays a vital role in service related sector such as travel and tourism sector where no
goods are produced but services are generated. Thus, travel and tourism is fully supported on
the hospitality services provided at different stages. The services of hospitality
management define various regulations in respect of providing benefits to travel and
tourism sector. Tourism industry is one of the major source of employment in UK which
has a huge impact on the growth of the economy.
Thomas Cook is one of the leading travel and tourism organizations that has been in
partnership with many hotels and air craft companies for providing leisure facilities for its
customers. Each year, many travellers plan for vacations to all sides of the world with the
support of tour operators. These people play a most specific role while deciding the
destination and travel package for enjoying purpose so as to satisfy the over growing needs
and demand of customers.
TASK 1
P1.1 Interrelatedness between travel & tourism sector and hospitality organisation
The industries in hospitality is growing at huge rate that includes benefits such as
providing leisure facilities, accommodation, restaurants, event planning and theme parks
at a most affordable price. Tourism has a vital role in encouraging hospitality services of
any area, country or place. In UK, travel and tourism sector have facilitated huge
opportunities for people to have a magnificent leisure time by experiencing cordial
reception services provided by various hotels and resorts. Various tour operators have
been in collaboration with airline companies, five star hotels, food and beverages
department as well as amusement park companies to provide a great and leisure
experience to consumers while touring through their company. The recent preferences
have encouraged individuals to spend more of their time ongoing out on vacations and
which has resulted in the growth of tour operators business in the future. The travel and
tourism industry comprises of various sectors which include making plans for various
activities like shopping, lodging, binge watching, water sports activities, hiking,
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campaigning etc. The service of hospitality is uncertain and changes from time to time as
need for vacations are increasing and various persons are paying for vacations to
domestic property or international destinations (Chathoth and Olsen, 2008).
The industries are linked to tourism sectors in many ways such as workers
providing leisure services, food and room benefits, transportation and accommodation
service to visiting consumers. Thomas Cook was established in the year 2007 and had around
£9 billion of sales last year providing quality services to its customers and having headquarter in
Peterborough, England is listed on the London Stock Exchange. Company has its partners who
provide quality hospitality services to customers of Thomas Cook which has improved its image
and opened ways to expand in all segments thereby rendering attractive holiday packages (Baum,
2006). Thomas Cook has been in business with many hotels such as Hilton and Imperial for
providing welfare services to its customers at a high rate which improves their stay and leisure
time.
Hospitality services plays an important role in travel and tourism industries by
rendering quality services and products to various consumers. The travel and tourism
organizations include services of theaters, pools, bars, food courts, balling, body massage
and spa services to attract and retain consumers. To make the report more concrete and
authentic, two major hotels of London are taken into consideration for understanding the
interrelationship between hospitality and tourism sector. These are Imperial and Hilton hotels,
London (Fernandes, 2015).
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(Source: Economic contribution of the UK hospitality industry, 2015)
Imperial hotel, located in the heart of London, gives an easy approach to Liverpool
station which provides buses and car facilities as well. This 5 star hotel renders services for both
corporate purposes and luxurious experience to customers visiting there. The hotel has 450
rooms equipped with queen size beds, alarm clock, fire exit, television and modern bathroom
facilities (Alonso and O’Neill, 2010). The hotel offers Wi-Fi to its customers and has smoking
zone outside its lobby which provides customers with exclusive experience to enjoy their stay
and relax with families.
Another hotel in London rendering amazing hospitality services is Hilton which is
amongst the top hotels of UK and provide services in more than 80 countries is a chain of hotels.
The services provided by Hilton are exclusive and luxurious which satisfy every need and desires
of customers coming for either leisure or business purposes. Hilton has more than 500 stylish
rooms and business suites which are designed to enhance customer’s stay by providing authentic
hospitality from room facilities to food services all around the globe. Thomas Cook is in
collaboration with Hilton as the hotels are located nearby airports which render easy access to
transportation facilities to its customers (Chen, Chen and Okumus, 2013). The two airports are
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Illustration 1: Interrelationship between Hospitality and Tourism Sector

mainly Heathrow and Gatwick. Apart from this, the hotel is surrounded by many big food and
beverages, massage centers, beauty and spa shops as well as parks and amusement departments
for kids to intensify their stay.
TASK 2
P2.1 Analysis of integration to the hospitality and service industry
Integrating is basically a huge term which consists of mixing activities of diverse
divisions of a company so as to achieve more profit and better results. It is a process used
to change economies of scale and trim back operational cost which will help in increase the
overall profit margin and revenues of enterprise. Integration techniques of companies
helps to catch a huge market share as all functions are performed inside the organisational
unit properly which helps in improving their global image, status and brand. Travel and
tourism industries are given the responsibility for mixing hospital management services
which will help in increase its overall image and helps in expanding their market share.
Hospitality organisation and tourism industries both require mixing of sections as there are
many sectors and sub-sectors working in the organisation which needs to be seperated so as
to become large and one single company (Barrows, 2011).
Thomas Cook has been integrated with numerous hotels chains and airline companies for
providing extensive hospitality services. It would result in business expansion and effective use
of existing resources. The integration is further divided into two segments :
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(Source: Hospitality in Travel and Tourism Sector, 2012)
Horizontal integration:
Mixing of companies horizontally indicates Federal of two diverged organization to form
a larger enterprise. Horizontal combination helps companies in expanding their share and attract
and retain customer. It also helps in growth of organization. Acquisitions takes place when one
companies statistical distribution chain is in shape with another company working. Hotel Hilton
merged with Walt Disney by purchasing its resort. This merger usually takes place to encourage
work provided by two different organizations by converting in one single unit such as airline
company merging with hotel business.
Thomas Cook has merged with two travel based organization so as to gain cost advantage
and increase overall profitability margin (Davidson, McPhail and Barry, 2011). This type of
integration help Thomas Cook to increase its economies of scale by serving larger group of
people and thus has gained it a larger market share in regard to its competitors. At times
horizontal integration decreases the control over all departments which results in inadequate
generation of information, outdated productivity and endanger decision-making. Thomas Cook
could merge with Edward House Hotel, UK to increase its profit and gain competitive advantage
by improving lodging facilities and other hospitality services. Horizontal integration has build a
brand image for Thomas Cook by generating more revenue because of consolidation with
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Illustration 2: Types of Integration in Hospitality Industry

different hotel chains and food and beverage companies which has enhanced its hospitality
services (Kotler, Bowen and Makens, 2010).
Vertical integration:
Vertical integration refers to purchasing of its own suppliers in the distribution chin
which increases productivity and profit margin of the company. Vertical integration could be
done in three ways such as lateral, forward and backward integration. This integration helps in
lowering the overall cost of operations thereby creating barriers for new firms to enter into the
industry.
Lateral integration refers to amalgamation of two companies providing same or identical
services to people (Olsen and Roper, 2008). Both hospitality and travel & tourism sector are
merged together so as to provide better services. For instance, Hotel units could merge with
catering service providers so as to provide quality food services to all customers staying in hotel.
Forward integration implies combining services of two different units so as to provide
impressive and economic services to the customers in best possible manner. Thomas Cook has
merged with airline companies which increased its productivity and control on the supply chain
management by providing best quality products.
Backward integration refers to purchasing of intermediary companies which are
providing assistance to parent company. Thomas cook through backward integration evolved
many subsidies such as Thomas Cook travel agents, Thomas Cook Cruises, Thomas Cook tour
operations and Thomas Cook Airlines which has increased its profit margin and reduced cost of
taking assistance from other companies.
P2.2 Impact of integration on hospitality business.
Either vertical or horizontal integration has both negative and positive impact on the
hospitality industry. Integration of business brings in advancement which increases core
competencies, newer technology, and competitiveness which attract customers. Integration helps
business achieves competitive advantage by combining good qualities of two different business
units (Kotler, Bowen and Makens, 2010).
Thomas cook by merging with hotel chains and other industries has enhances its
productivity and scale and scope of economies. It has saved company a lot of cost of transactions
and increased footfall of customers traveling. Secondly, merging of companies has decreased use
of natural resources which are limited by working mutually (Olsen and Roper, 2008). Thomas
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Cook customers have advantage while planning for vacations by company as they need not to
worry about airline vacancy or hotel accommodation. A range of sources of information has been
used in analyzing the effects of integration in the hospitality sector. These are:
(Source: Hospitality & Leisure, 2016)
Cost:
Integration either vertical or horizontal are forcing companies to spend more money so as
to perform, effectively by controlling all departments. New investments are made in technology
and training of employees so as to provide better services to customers. Thomas Cook's
integration with hotel chains has forced the company to invest more in its business operations.
Technology:
Integration of technology affects hospitality industry. Thomas Cook has adopted newer
technology so as to meet growing market demand and business changes. It provides better
coordination between different department as well as customers present globally. With the
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Illustration 3: Integration of different services

enhancement of technology, Thomas Cook now sent the tickets booked directly to customers
with help of email (Kotler, Bowen and Makens, 2010). The company posted all relevant
information online for customer to make bookings and payment using web portals. Payments
online has been simplified by integrating with banks and other security systems.
Globalization:
The companies are growing with globalisation. Thomas Cook has integrated with
different organisations for providing quality hospitality services to its customers present
worldwide. It has forced organizations to keep up to date with changes so as to achieve
competitive advantage (Fernandes, 2015). At times organisations fail due to lack of coordination
between customers present globally. It poses threats for companies to make holiday packages
for customers from different countries, culture or religion.
Quality:
Integration of companies enhances quality of services as two companies good qualities
are merged for providing hospitality services. Though quality depends on human resources it
could be improved or could prove to hamper the companies image. In vertical integration
workers do not acknowledge the new strategies which hamper working at Thomas Cook as the
company is not able to manage impact of demand.
Economies of scale:
Integration of business helps to raise economies of scale which brings decrement in
operating cost and intensify profitability of organizations. Hospitality in accordance to travel and
tourism has increased customer base at Thomas Cook which has raised its total market share
against its rivalry firms (Kotler, Bowen and Makens, 2010).
Better Access:
Integration also improves better access to transport facilities, food and beverages
arrangement, saloon and spa services etc. which is provided by hotel department to its customers.
Thomas Cook has integrated with hotel Marriott and Hilton for providing all leisure facilities to
its customers which has increased its profit by attracting customers globally for planning
vacations.
Standardisation:
Standard services are ensured because of integration of organizations as scale of
economies is raised which forces tour operators to provide better and standard services. This
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forces Thomas Cook to render services which creates benchmark for the company every time to
every customer worldwide (Kotler, Bowen and Makens, 2010).
Thus, Thomas Cook has taken various measures to reduce impact of integration either vertical or
horizontal on its working by providing standard services to all customers worldwide. Secondly,
the company has forward integrated by opening its own hotels and motels which has decreased
overall cost and raised profit by providing flexible services.
TASK 3
P3.1 Develop hospitality business and its decision-making.
The hospitality sector is growing tremendously by incorporating travel and tourism sector
and other basic industries as well. While developing a hospitality business we should ponder
onto various criteria which enhances the leisure time and staying experience of customers.
Developing of hospitality service by hotel Hilton in London which plans to start a restaurant.
The manager needs to carry out a critical evaluation of different concepts such as the new
business vision, customers to be targeted, location and size of new project and total investment
which needs to be made (Baum, 2006).
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(Source: Hazel's Leadership Blog, 2013.)
Plan:
Planning is an essential part to be undertaken before setting up a project by manager at
Hilton. This vision has been evolved as many customers visiting hotel needs refreshment
facilities which the company was outsourcing before. The main motive behind starting of a food
and beverage restaurant is to satisfy customers by providing refreshment facilities at their doors.
Market Research:
Critical market research is vital before setting up any new project or venture. Hilton is a
multifaceted hotel chain operating globally implies a slight dissatisfaction by customers may
hamper its overall brand image. Thus, setting up of restaurant should be critically evaluated as it
will require huge capital investment (Hazel's Leadership Blog, 2013.). It is advisable to carry out
research about customers expectations, market implications and disposable income.
Target Customers:
These includes all visitors and localities visiting hotel for either business persons for
corporate meetings, family vacations, leisure time with college friends, newly married couples
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Ill
ustration 4: Organizational Structure of a Restaurant

etc. The Restaurant will cater to the needs of customers by providing quality and tasty food
products with refreshing drinks both alcoholic and non-alcoholic.
Location and Size:
Another important step to consider the size of restaurant which will incorporate inside the
hotel campus. The location though is UK in the heart of London which has major footfall of
people and is easily accessible from different parts. The design and structure will be modernistic
which will attract people to sit and relax (Hospitality & Leisure, 2016).
Culture:
The name of restaurant is Podium which will offer seasonal contemporary cuisine to its
visitors while enjoying luxurious design and atmosphere. The motive is to render exclusive
services to customers while relaxing in their chairs with light music to enhance their taste and
food experience (Kotler, Bowen and Makens, 2010). The Hotel manager is continuously
checking on hygiene and quality of services provided by staff equipped with special training to
maintain standard of food and cleanliness.
Product and services:
The services shall include quality and tasty food of any cuisine plus chef special products
with complementary drinks at entrance. The space will also include Wi-Fi facilities, television,
smoking zone and ash trays with personal attendant all the time. The restaurant staff will provide
comfort and relaxing atmosphere with complete privacy to customers so they can enjoy their
food.
Investment:
The capital investment is another big decision which need to be considered before setting
up of a rational project such as a restaurant. The funds will be acquired through banks and from
the reserve of the hotel which is being maintained for funding projects. The funds are taken as a
loan from bank which needs to be repaid.
Marketing:
Marketing is a crucial task which needs to be done through internet, magazines and
newspapers. Hilton has promoted its restaurant Podium through social media and leaflets in
newspapers as well as travel magazines (Barrows, 2011).
Licensing:
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Legal procedure needs to be followed by Hilton before commencing the new business.
The hotel needs to take an additional license for serving alcoholic beverages and other food
products which requires government approval prior to its selling to general public.
P3.2 Evolution of a plan for hospitality sector.
This step includes the allocation of human resources to different segment so as to mange
all operations effectively. The business plan for Hilton hotel at the heart of London requires to
make market research and designing of operating modes as well as development of resources
which will be needed to execute the overall idea. This is an important stage which will decide
overall growth of hotel while enhancing its brand image (Barrows, 2011). The human resources
here plays a crucial role in enhancing the services offered by maintaining quality standards
throughout the hotel chains. The manager needs to recruit personnel who are skilled and
experienced so as to tackle customer demands actively.
Stage 1: Development
The Podium needs staff which is well equipped and has knowledge about working of a
restaurant. This step focuses on enhancing hotel image and raising satisfaction of customers
visiting. Hilton at this stage is engaged in recruiting and selecting those candidates who are
skilled and experienced so as to built a staff personnel who can assist customers thereby
rendering quality food and services.
The quality is achievable by employees rendering quality food and healthy services, The
motive is to give customers an unforgettable experience with reasonable prices of food and
beverages with complementary refreshing drinks. The company needs to continuously check
market trends and recent developments so as to supply up to date products (Fernandes, 2015).
The podium is engrossed in rendering environment friendly packaging of To-Go boxes as
well as delivery products. The restaurant is managed by well equipped staff who serves to
customers and provides a healthy and friendly atmosphere.
Stage 2: Design
The design refers to various factors which attract customers and teaches the value of food
and environment. Impressive design of interior and exterior side of restaurants and pubs is
helpful to attract customers (Baum, 2006). It includes
Ambience -
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The ambience at Podium is friendly which attract customers to visit the restaurant again
and again to satisfy their tastes buds as well as feel refreshed (Baum, 2006). The management
has provided colorful walls and light music to enhance customers mood while enjoying food and
drinks. Modern equipments and classic design is best suited the status and class of customers
visiting .
Culture -
The culture provided is more of friendly in nature where employees are soft spoken and
well behaved (Fernandes, 2015). The company management has focused on more of a traditional
UK culture which influences people to enjoy and experience the traditional culture while
enhancing their taste buds.
Interior and Exterior -
The hotel has emphasized on colorful walls and exclusive lightening for enhancing
customers experiences. Use of frames, flowers and music makes the overall look of Podium well
furnished and fantastic (Baum, 2006).
Stage 3: Operations
The hotel restaurant needs to carry out various operations so as to work efficiently and
effectively meeting customers demand and organizations motive. These operations include
Recruitment:
This is an essential process which includes hiring of skilled and experienced staff to assist
customers from taking food orders till delivering of essentials (Fernandes, 2015). Podium has
designed its own process of selecting candidates which will work to enhance organizations
image.
Staffing:
This include deciding which services the selected candidate will carried out. Prop[er
training and development is essential at this stage so as to produce quality services (Davidson,
McPhail and Barry, 2011).
Cultural diversity:
Different personnel has different culture working for a single motive that is to enhance
Hilton hotel image. Management is responsible for providing healthy working culture to
employees so that they can grow with the organization thereby fulfilling its aim and vision.
Legislation:
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Every organization requires certain rules and procedures to be followed by its employees.
At Podium employees are required to work under set legislation by taking care of quality of raw
materials to be procured for further processing (Fernandes, 2015).
CONCLUSION
The report shows the relationship between travel and tourism sector and hospitality
industry which is inseparable. Every organization is working for welfare of customers thereby
maximizing profit and reducing cost. The main focus is to provide quality facilities at hotels with
enhanced hospitality services to customers visiting for any purposes.
Integration of businesses also plays an important role in enhancing services as two
companies combine together for providing facilities to customers either business persons or
family or friends on vacations. This increases economies of scale for both business units as well
as reduces the overall cost of operations. Th restaurant facility opened at Hilton has provided
food and beverage services to lodging customers as well as London localists.
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REFERENCES
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Baum, T., 2006. Human resource management for tourism hospitality and leisure. Thomson
Chathoth, P. K. and Olsen, M. D., 2007. The effect of environment risk, corporate strategy, and
capital structure on firm performance: an empirical investigation of restaurant firms.
International Journal of Hospitality Management. 26(3). pp.502-516.
Chen, H. J., Chen, P. J. and Okumus, F., 2013. The relationship between travel constraints and
destination image: A case study of Brunei. Tourism Management. 35. pp.198-208.
Davidson, G. C. M., McPhail, R. and Barry, S., 2011. Hospitality HRM: past, present and the
future. International Journal of Contemporary Hospitality Management. 23(4). pp.498-
516.
Fernandes, T. 2015, "How can we encourage travel and tourism is ASEAN?", International
Trade Forum. 2. pp. 34.
Kotler, P.,Bowen, J. T. and Makens, J. C 2010. Marketing for hospitality and tourism. London
Pearson
Olsen, M. D., & Roper, A. 2008. Research in strategic management in the hospitality industry.
International Journal of Hospitality Management. 17(2). 111-124.
Online
Hazel's Leadership Blog. 2013. [Online]. Available through:
<http://alienleadership.blogspot.in/2013/09/5-gordon-ramsays-organisational.html>.
Hospitality & Leisure. 2016. [Online]. Available through:
<http://www.teslainfotech.com/Hospitality.php>.
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