Accounting for Staffing Issues in the Hospitality Industry

The report provides an analysis of the Cafe Art hotel's staffing issues, cultural diversity, recruitment policies, compliance with legislations, advertising and promotional activities, and pricing strategies. It highlights that the hotel may face challenges related to seasonality, inadequate leadership, and poor management in the workplace, leading to high employee turnover rates. To overcome these issues, the report suggests developing a positive work culture, providing flexibility to workers, and recruiting employees who are knowledgeable about different languages. Additionally, the report emphasizes the importance of compliance with legislations, such as equality laws, employment laws, and health and safety acts. Furthermore, it recommends implementing various advertising and promotional activities, including online marketing, direct mail, and social media platforms, to attract more customers. Finally, the report suggests adopting a moderate pricing strategy to make its services affordable for middle-income groups and generate revenue.

Hospitality
Provisions in Travel
and Tourism-Sector

INTRODUCTION
In the today's competitive marketplace, Hospitality industry has turned out to be one
of the leading service industry across the globe, contributing in the development and growth
of economy of a country. Moreover, due to availability of wide range of leisure and
recreational services, the interest of people has developed in tourism also. The travel and
tourism sector is directly linked with hospitality sector and providing ample of opportunities
to other emerging services industries such as IT sector, event management, lodging,
transportation, restaurants and etc., in order to fulfil the demands and needs of customers.
With the mentioned services, the growth of travel and tourism has been increasing with swift
pace and becoming biggest sources of employment. The present unit introduces the diversity
in hospitality industries along with the relationship between both tourism as well as in
hospitality sector (Aragon-Correa and et. al., 2015). This report also provides brief overview
of sustainability and growth in hospitality and tourism industry, along with the implications
of integration to this industry, inclusive development of hospitality-based project. Thus, with
the reference of the Hotel Marriott International Inc. a multinational hospitality company and
franchised broad spectrum portfolio of hotels and other lodging facilities.
TASK 1
1.1 Interrelationships between wider travel and tourism businesses and hospitality industries
The tourism and hospitality sector is one of the world's largest service sectors, which
are generating high revenues and contributing their significant portion in the economic
growth. The hospitality industry comprises of broad range of field, including event planning,
catering, lodging, transportation, theme parks, accommodation establishments, restaurants,
night clubs and many more premium services (Atalay and et.al., 2014). This industry is
particularly focused to render satisfactory and lavish services to customers, in accordance to
their preferences and demands. There are numerous hospitality organisations are operating
the London, the UK providing luxurious services to travellers, who have come from overseas.
In addition to this, It has also been observed that with the increase in tourism, the demand of
hospitality industries are also increasing (Bharwani and Butt, 2012). The hospitality sector
cater for leisure, tourism and travel, in order to provide recreational and leisure services to
people. As, with the increase in disposable income of people, more free time and demand for
visiting holiday destinations, the provision of hospitality industries in travel and tourism
sector has increased to high extent. People travel to satisfy their soul, experience new culture
of various tourist destinations all across the world.

Their is great role of hospitality industry in tourism businesses, as people travel for
different purposes, whereby there is also requirement of hospitality services, like
accommodation establishments, restaurants, foods and beverages, lodging, entertainment, and
leisure. Therefore, people nowadays demand for lavish tourism facilities, which can be
affordable by them at convenient prices (Bharwani and Mathews, 2016). Research has been
made that, there are over 180,000 leisure and recreational centres are established in the UK.
In relation to deliver prominent services to tourists, the Hotel Marriott is emphasizing to cater
better house keeping and accommodation facilities to them (Bhatia, 2012). The hotel is
making significant efforts to avail premium hospitality services to travellers and guests.
Moreover, hospitality industry comprises of following services: Hotels: These are places which avail accommodation facilities to travellers. There are
different types of hotels are available according to their ratings from 1to 7. Generally
hotels are rated on the grounds of number of services and amenities provided, scale
and quality. Tourists can opt different packages according to their budget. Camping parks, lodges and caravanning: Lodges and camping parks can also
provide opportunity to people to enjoy the outdoor activities and nature view (Chon
and et. al. 2013). Cafe: Cafes offer various food cuisines, including beverages, coffee shops, snacks
and desserts and food. These are more attractive and grab the attention of people
(What Exactly is the Hospitality Industry?. 2015). Catering providers: Tourist may also take the advantage of catering services which
renders foods and beverages in hotels, city centres, airlines or in events. Restaurants: These are places whereby different requirements of tourists ranging
from high class exclusive accommodation establishments to other facilities, like bar,
pubs and etc (Cook and Marqua, 2014).
 Cruise ships: There are various tour operators, like Thomas Cook that offer short-
haul and long-haul cruises at affordable prices to tourists, so that they can spend their
leisure tome there.

Illustration 1: Interelationships between tourism and hospitality sector
Sources: Gursoy, and Sandstrom, 2014
The Hotel Marriott is laying its concern over delivering customized holiday packages
to tourists and add worth to the value of their money. Moreover, complementary services can
also be added in the service list, in accordance to demand and needs of customers. In order to
increase the customer segment, it is required to facilitate luxurious services at convenient
prices. However, there are also other travel related services which can be provided to tourist
along with hospitality services (Cummings, Kwansa and Sussman, 2013). Many popular tour
operators, like Thomas Cook, Cox and Kings and TUI Group are delivering diversified
tourism services to travellers, including sightsee services, food services and other
accommodation related facilities (Gatt and Schranz, 2015). Travel services comprises of
business and holiday packages for particular destinations, along with other lavish services,
which will provide great comfort to tourists. These tour operators promoting their services
with the help of various promotional mediums, in relation to grab the attention of people. In

addition to this, these tour operators also get integrated with many diversified hospitality
companies, like Marriott is integrated with Thomas Cook and delivering prominent services
to tourists. Therefore, the Hotel Marriott is required to cater off high quality services in order
to gain substantial benefits and high degree of customer satisfaction (Tourism Industry
Structure. 2014)..
Thus, with the increase in the demand of tourism, it has become necessary for tourism
industries to integrate with hospitality sector, so as to increase profitability and gain
sustainability in the competitive global marketplace (Hay, 2016). People travel to different
tourist destinations for varied purposes, to explore the world and facilitated with lavish
services. Travel agencies should also make sure to deliver prominent services to tourists, so
that customer can get the sense of satisfaction. In addition to this, it can be referred from
below flow diagram that tourism-industry and hospitality that tourism sector comprises of
numerous activities, such as sporting, recreation, cultural activities, travelling and
transportation services. However, hospitality industry includes event catering, beverages and
food services, accommodation and others (Harrington and et.al., 2014).
Illustration 2: Mapping of tourism and hospitality industries
Sources: Jones, Hillier and Comfort, 2016
There is strong relationship between hospitality and tourism industries, which is key factor in
the improvement of economic conditions of nations. Increased sales revenues and high

generated benefits will rise he economy of tourist destinations in an effective manner.
Moreover, there are also other intermediaries involved with these service sectors, like
wholesalers, suppliers, manufactures and other people (Kapiki, 2012). Hence, it can be stated
from the entire discussion that hospitality sector is accentuating the degree of satisfaction in
customer and also broaden the spectrum of travel and tourism industry in the competitive
marketplace
TASK 2
2.1 Implications of integration to the hospitality industry
In the hospitality sector the implication of integration would be that it is difficult for
an organization which has many firms under its control, It is to handle all the aspects related
to them.. In vertical integration, these firms will be under one organization but will be
managed by different stores (Karcher, 2013). The whole organization will have to face issues,
if major problem arises with one particular sector. In this case, the brand and reputation of the
organization may suffer. Many firms merge together so this affects hospitality industry.
Horizontal integration helps in increasing the company's market share. This will help to
create more market space so as to promote and expand themselves. Although integration
has both positive and negative effects. It can be effective and efficient for the organization's
that are undergoing integration.
Many organizations prefer horizontal integration rather than vertical integration as
they will likely to take one particular type of services and product to promote. It is difficult to
monitor the entire organization in terms of promotion, and cost so vertical integration is less
preferred by the organizations (Kotler and et. al., 2016). However, integration is successful
when two different areas of tourism industry are integrated, for example, the airline company
joining with travel provider. This will help the company to attract more customers and to
promote their brand in the market. This will also assist the organization to grow and to
maximize their profits. If two strong companies merge together then it sometimes creates
problem for the smaller organizations. In this way, smaller organizations will be thrown out
of the industry and many people will become unemployed.
Further, it will also result in conflicts of interest because companies who are merging
might have different vision and mission (Law and et.al., 2015). Hence, decision making
process is also affected by this. It is very important that the services provided by the
companies should be same at all places as anything less will not be accepted and will ruin its
reputation.

For examples: Ryan air and easy jet are well known flights to destinations across Europe,
they decided to merge but one company refused so it impacted the organization as it faced
loss and this ruined the reputation of the organization (Law, Buhalis and Cobanoglu, 2014).
 Virgin trains which is owned by virgin group and is also in partnership with
stagecoach. In the travel industry, two companies take over one another to identify
many ways to sell their services and products to customer.
 Hilton hotels international purchased a hotel at Walt Disney world resort for
$92,202,465 (Law, Leung and Au, 2013).
2.2 Impact of integration on hospitality industries
New services can be offered to the customers and hence will help in increasing the
profits margin. Integration enhances the overall economic development of the country. By
following integration, the cost can be minimized. In other countries the business can be
diversified with the help of integration (Mariani and et.al., 2014). Competitive advantage is
the most important advantage which can be experienced with the help of integration. With the
help of integration, economies of scale can be achieved easily. More customers will get
satisfied and attracted by combining core competencies of two companies. Overall economic
growth of the country will be improved. Integration has its positive points and negative
effects because there is only one management which handles the two different companies.
Integration may affects hospitality business because if more than one firm merges then they
all are considered as one main organization (Mensah and Dei Mensah, 2013). Organization's
goes for integration to reach economies of sales and to lower their operating cost.
Rationalization of staff and capital leads to increase efficiency. Cost of developing will be
less when total income will be compared as this will help in saving money.
High risk of failure is there if complementarities are not aligned properly. Due to
conflicts between synergistic firms there will be rise in cost automatically. An example is the
recurring conflicts between tour operators and hotels over payment and price (Milev and
et.al., 2014). Misfortunes from recently obtained business may cut the benefits from already
existing ones. Hence, just after cautious investigation, new acquisitions must be prepared.
Acquisition and merger increases the value of the companies. Government interference may
lead to problems by stopping the process before it starts. The merger will only be worthwhile
only by achieving the synergy between two combined units. It may be hard to run all the new
entity as there could be difficulty in developing combined corporate size and culture,
expensive overlapping of products (Morita, 2016). Newly combined units lack flexibility.

Sometimes employees may feel less valued than those who are higher up in the chain. Lack
of control may hinder the productivity and finger pointing when things go out of control.
Employees may not relish the new culture, place, responsibilities, environment, and work and
may remain dissatisfied (Moutinho, 2011).
The Marriott Hotel of UK has been affected by integration because of its marketing
strategies which is being used. Because of lack of proper communication between the
Marriott hotel and tour operator conflicts may arise. In this way the customers of the Marriott
hotel will have to face problems. In this manner the brand image of the Marriott Hotel will
lay negative impact in the minds of the customers. Communication gap will make the Hotel
Marriott suffer losses (Norton, 2015). Customers of the Hotel Marriott will remain
dissatisfied with its irresponsible behaviour and services. In this manner Hotel Marriott will
not be able to satisfied its customers and will not be able to earn maximum profits. If Hotel
Marriott gets integrated with Hotel Hilton then more profits can be earned. Hotel Marriott
will be able to promote more and will be able to serve its customers in better way. With
adopting of new innovations which Hotel Marriott will use this will help to attract new
customers and to promote its brand by serving better. Economies of sales will be easily
achieved by Hotel Marriott by integrating with Hotel Hilton. Marketing of Hotel Marriott will
be done more nicely (Osman, Johns and Lugosi, 2014). The reputation and brand image of
Hotel Marriott will increase.
TASK 3
3.1 Developing a rationale for clarification of decisions linked to target market
In relation to enhance the effectiveness of hospitality services, the hotel Marriott is
required to develop a rationale for establishment of its small unit in the London. While
planning the business plan for its new branch, the following considerations are required to be
taken into account:
Stage 1: Development
 Concept: The Hotel Marriott is required to emphasize on the strategical development
approach while establishing new brand of hotel ate small scale, whereby luxurious
services will be rendered at affordable prices (Page, 2014). The hotel will also include
a small coffee shop and cafe, in order to attract large number of people. The restaurant
will have fascinating and beautiful décor, which will grab the attention of people.

Moreover, there will be innovations and creativity in the offering services. The name
of cafe which will be integrated with the hotel, named as 'Cafe Art'.
 Market Research: The Hotel Marriott should accentuate to market research, so as to
analyse the demands, need and preferences of people. It has been stated from the
research that, hospitality industries are growing with rapid rate, due to which
competition is also becoming very tough (Platonova and Krivosheeva, 2015). So, in
order to sustain in the competitive marketplace, it is required to render quality
services, along with delicious foods and beverages. Moreover, market analysis will
also be done by the company, in order to know the number of local cafes located in
the streets of the London, which is a part of intense competition (Sanjeev and
Bandyopadhyay, 2016).
 Target Market: The organisation need to target its market and audience while
producing quality services and products (Sen and Kaushik, 2016). With the help of
many promotional activities and marketing tools, it can effectively promote its
services and products. The main target audience of the hotel 'Cafe Art' will be
youngsters and office workers, who fall in the age group of 15 to 45. In addition to
this, it will also deliver its services at home, offices and other shops.
 Location: The Hotel Marriott will find specific location, where it can launch its new
small-scale hotel. The best preferable location is King street, where there are large
number of people gathered (Shi and Liao, 2013.).
 Scale of operations: The small-scale hotel will be facilitated with 200 rooms, along
with 50 AC rooms and other non-AC. Moreover, there will also be availability of
various suits, lawn, inclusive premium services.
 Funding: The hotel Marriott is required to accumulate surplus money with the
assistance of many financial resources, like it can take loan from banks, borrow
money from stakeholders and other business man. Thus, the 'Cafe Art' should manage
its financial activities in an adequate manner to sustain in the competitive market
place (Sigala, Christou and Gretzel, eds., 2012).
 Products and services: The Cafe Art' will render customized services, which will be
creative and innovative enough to gather the attention of customers. There will be
availability of premium class services along with delivery of delicious food.

Moreover, there will also be availability of other services, like pool facility, catering,
dining, sight seeing and many more hospitality services.
 Licensing: The 'Cafe Art' is required to get its hotel licensed and registered, so that its
quality of services and products can be maintained. In addition to this, it is also
required to comply with all legislations and regulatory frameworks in an adequate
manner (Sloan, Legrand, and Chen, 2013).
Stage 2: Design
 Interior décor and Ambience: The interior décor of 'Cafe Art' will be attractive
enough and according to the theme. There will be wooden décor, which will grab the
attention of people in an effective manner (Solnet, Kralj and Baum, 2015). The staff-
members of the hotel will have friendly nature, so that customers can get the sense of
satisfaction. Moreover, there will have antiques in the cafe, which tend to attract
people's attention.
 Culture: There will be thriving culture in the 'Cafe Art'. Customers are facilitated
with high level of hospitality services, which will influence them. There will be music
facility along with other fascinating services. The waiters will offer their prominent
services to clients, also there will be small gaming zone for school children, so that
they can spend their time there for long time.
 Brand: The Cafe Art' will build its brand by emphasising on the quality and price of
services and products. At convenient prices, it will sale its services, also avail
discount schemes and other coupon system, in order to attract huge customer mass
and sustain growth.
 Interior and External: The cited hotel is required to look upon all interior and
external prospects, there will be wooden furniture, relaxing rooms, gym sections and
spa room will also be available in the hotel (Vij, 2016). The exterior of the hotel will
be décor with glasses and highly impressive, such that people can easily get attracted.
 Functional areas: All functional units of the hotel will be split into different
departments, like there will be HR, kitchen, cashier, marketing and sales, house
keeping departments, each department will be allotted with specific responsibilities.

 Customer flow: The customer flow will be monitored according to number of rooms
available, time lapse, by taking feedbacks from customers and get in touch with them
with the help of many social media tools and techniques.
 Link to target market: The major target market of the 'Cafe Art' will be kids,
youngsters and office people. Moreover, the hotel will market research and target its
audience accordingly. It is very essential to link with the target market, to fulfil the
needs and demands of people, according to their preferences(GLOBAL PROBLEMS,
GLOBAL SOLUTIONS:.2009).
 Needs and demands of people: It is very difficult to fulfil the needs of customers, as
their mind-set keep changing, so it is required to cope with the changing needs of
people (Aragon-Correa and et. al., 2015).
 Sustainability: The Cafe Art can attain sustainability and profitability, if it focused to
maintain the quality of products and services, keeping hygienic conditions of rooms
and other areas and available high-class foods and beverages according at convenient
price rates, which can reach to all customer segment.
3.2 Development of plan for hospitality businesses including operational requirements
The manager of the 'Cafe Art' should assign different roles to their staff-members
according to their qualifications and specifications. The following plan will allow the hotel to
get managed its all operational functions:
Staffing requirements in accordance with specific functional areas Chef: There will be maximum 5-6 chefs will be required, who would be able to cook
variety of dishes of different regions. So, highly skilled and knowledgable people
need to hired who can easily adopt changes in accordance to changing demand, tastes
and need of people (Tourism Industry Structure. 2014). The manner in which
presentation of food done, will also attract customers. Manager: There is great responsibility of managers in the hotel, he is the person who
would make all arrangements and allocate resources in an effective manner. In
addition to this, he should be capable enough to deal with issues and problems of
customers and influence them (Bharwani and Butt, 2012). He should also possess
decision-making skills and communication skills while dealing with clients.

 Housekeeping: The 'Cafe Art' is also required to have housekeeping department, in
order to maintain hygiene in the cafe and hotel. Along with this, it is also
responsibility of the hotel to motivate them, so that they can render better services and
influence customers in a significant manner (Aragon-Correa and et. al., 2015).
 Accountant: The person who take the responsibility to manage all finance, I known as
accountant. An accountant will be responsible to keep record of all transactions.
Staffing issues related to seasonality
While assessing the business operations, it has been found that the staff-members of
hotel may face issues and challenges regarding inadequate leadership and poor management
in the workplace (What Exactly is the Hospitality Industry?. 2015). As a result of which, the
turnover rate of employees increases. The 'Cafe Art' can also face issues regarding
availability of right candidates in the high time. Moreover, problem may also arise due to
lack of knowledge of different languages, which will become then big hindrance.
Cultural diversity
The 'Cafe Art' is required to develop good culture and positive working environment
in the workplace, provide flexibility to workers so that they can contribute more. The
manager of the hotel hold the responsibility to develop team skills among workforce to attain
growth.
Recruitment policies
The norms and rules should be according to the legal acts and regulatory frameworks.
Recruitment and selection policies should be comply with employment laws and other
legislations, in order to prevent any biasing while hiring a person (Aragon-Correa and et. al.,
2015).
Compliance with legislations
The hotel should adhere by equality laws, employment laws and health and safety
acts, in relation to provide protection to customer's rights and obligations. If there will be
compliance with legislations in the workplace, then the hotel would it easy to access its
operations smoothly (Bharwani and Mathews, 2016).
Advertising and promotional activities

To promote its services the hotel 'Cafe Art' will make use of various promotional and
advertising techniques and methods. It can give advertisement on TV, radio, social media
platforms or on newspapers. Moreover, it can also promote its services via online marketing,
direct or virtual marketing tools.
Pricing
If there will be moderate pricing strategy and availability of all prominent services,
then more number of people will tend to attract, due to which large revenue can be generated.
So, that middle income group of people can easily afford its services and get the sense of
satisfaction.
CONCLUSION
In essence, summing up the study, it can be depicted that tourism and hospitality
industry have prominent role to enhance the economy of a country. In the realm of intense
competition in the service sector, it has become necessary for tourism industry to undertake
the hospitality provisions. Moreover, it has been also reported that, both industries can make
strong interrelationships with the assistance of integration and mergers and acquisitions.
Furthermore, it is also inferred that hospitality industry can attain high growth and
sustainability by implementing various strategies and tactics. With the reference to the Hotel
Marriott, it can be concluded that, it should make significant efforts to establish its new
branch in London, in order to increase customer base, deliver premium services and obtain
profitability. With the help of business plan, it can analyse the factors that need to be more
focused to achieve success and long-term growth.