Hospitality Industry Analysis

This assignment delves into a comprehensive analysis of the modern hospitality industry. It examines the broad scope of the sector, highlighting its diverse components and sub-sectors. The analysis further explores significant trends shaping the industry, including the influence of technology, sustainability concerns, and evolving customer expectations. Finally, the assignment discusses the multifaceted impact of the hospitality industry on economic growth, social development, and environmental sustainability.

Hospitality provisions in travel and
tourism sector
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Table of Contents
Introduction....................................................................................................................................2
TASK 1...........................................................................................................................................3
1.1 Explain interrelationship between travel and tourism and hospitality..................................3
TASK 2...........................................................................................................................................5
2.1 Analyse the implications of integration on travel and tourism..............................................5
2.2 Explain the effect of integration on hospitality sector...........................................................6
TASK 3...........................................................................................................................................6
3.1 Development of rational plan..............................................................................................6
3.2 Developing business plan for operational requirements.....................................................8
CONCLUSION.............................................................................................................................10
References ..................................................................................................................................11
INTRODUCTION
As per the detailed study, hospitality sector is focused towards effective promotion of services so
that better satisfaction can be provided to customers. It has been noticed that employees of the sector are
more focused towards collective working in order to reflect their commitment towards customers need
accomplishment. Companies are also having efforts to meet customer needs and demands by having
development of services as per market research (Boniface, Cooper and Cooper, 2016). In addition to this,
Hospitality and tourism sector are having operations in collective manner that allows them to offer wide
range of services. However, services can be classified as, accommodation, food and drink and leisure
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activities. It also indicates that number of roles and responsibilities need to be accomplished by members
so that performance can be improved. Along with this, key motive of the tourism sector is to provide high
quality of services in per to meet satisfaction and improve experience level of visitors. It has also been
noticed that innovative and creative services provides better opportunities to the business entities.
TASK 1
1.1 Explain interrelationship between travel and tourism and hospitality
Certain things has been noticed by assistant manager of hospitality firm which need to focus on
different activities that allows in enhancing profitability of an entity. It indicates that accountability of
manager is to enhance revenue along with advancement in credibility of the services offered by hotel.
Organisation which deals in different variety of services in the hospitality sector involves different service
providers in the travel and tourism industry which is also one of the segment of hospitality sector. It
involves various services such as entertainment services which are further classified as accommodation,
business meeting and leisure activities. Customer satisfaction must be key motive of the organisation
while offering wide range of services. Another critical responsibility of manager in hotel to make sure that
all members are having proper coordination between each other so that goals and objectives can be
accomplished in desired way. Different services offered by an enterprise which involves all variety of
services that reflect luxury status of hotel which will divert the interest of customers towards their
business. The guest of hotels or visitors would understand that they get benefits for al the expenses spent
by them in the hotel in exchange of premium prices paid by the guest for standard suits. Following are the
same that are beneficial for travel and tourism sector:
Tour packages- the role of hospitality in designing various tour packages is most important as it will
need to consider all kind of costs and some percentage of profit. The designing of package is important as
the tastes and preferences are taken into consideration as most prominent factors as the demands are vital
in designing process. The tour packages can be range from budgetary, ratings of hotel such as 3 star, 4 star
and 5 star that symbolises quality.
Aviation- The airline industry's success is totally based on the hospitality sector as the travel services
offered by hotel organisations will boost up the sales level which is same position for hotel organisations
to provide travel related services under same roof. The full capacity of hotels will affect the business of
airlines as their accommodation services provided by the airlines to all the customers who are travelling
through via flights which stops at different destination fore covering large area that is London nad
America. The catering services provided by airlines in flights are also related to the hospitality and affect
the prices of food on the overall pricing pattern designed by the airlines.
Research- It has been noticed that users have selection of services as per their needs so it is significant
for management to understand market. It is also necessary for management to unsure that geographical
location aspects are well understandable. Accessibility to the transportation mediums like roads, train, air
is properly considered while having decision making process. Along with this, customers are also
attracted towards brand name so management of hospitality firm also need to ensure about it. It is also
necessary for business entity to improve brand image and lead business to impressive level of success.
Moreover, decisions in respect to pricing of services also need to be taken into account as per customer
needs. Better future can be framed by gaining competitive advantage over its competitors.
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Awareness- Businesses are facing key issue in respect to brand awareness so management must have
efforts for improvement in services. With an assistance of improvement in services more and more
customers can be attracted. It is also significant for business entity to make sure that website and other
advertising tools must be appropriate manner so that better opportunities can be created. Actual
information about services must be presented on the web portal so that promotion of convenience factor
must be there in order to meet goals and objectives.
Building customer relationship- In addition to this, it can be said that management need to focus on
customer relationship so that better relation can be built with members. It allows in meeting goals and
objectives because it renders information about customer. Regular basis communication with members is
also one of critical aspect that helps in sustainable development. With an assistance of this, better revenue
can be attained through developing strong relationship with the customers. Along with this, customer
development programs also need to be consider as critical aspect for effective development of business. It
will enhance the level of loyalty among customers and lead business firm to impressive level of success.
Interrelationship of hospitality industry and wider travel and tourism business:
In current market conditions, significance of hospitality firms has increased to great context which allows
in meeting goals and objectives in appropriate manner. It is also playing great role in effective
development of travel and tourism sector. Large number of visitors travel to the UK and stays in the
hotels. It means the hospitality industry and travel and tourism sector developed is integrated with each
other. It has been noticed that hospitality firms and travel sector both are focused towards
accomplishment of customer needs so that goals and objectives can be accomplished. It has been
witnessed that number of online platforms are present that provide information about hospitality firms as
well as travel and tourism services. It means by having improved focus on trip advisor management of
hospitality firm can attract more and more customers which may allocate more and more customers. It
means hotel booking, information about places to visit in UK, etc are key functions. It enhances the level
of experience among customers and lead business to impressive level of success. Moreover, online plat
form also allows visitors to share their experience which provides useful information other visitors who
are looking forward to visiting the destination. Information about tour package can also be attained so that
booking activities can be accomplished in convenient way.
In addition to this, it can be said that hospitality firms are also having effective promotion of diverse
services so that goals and objectives can be accomplished in desired way. Classification of services can be
as accommodation facilities, entertainment, restaurants, cafes, etc. (Brotherton, 2013). It is necessary for
businesses to make sure that the pre arrival and post arrival services are well maintained as per key
standards so that better experience can be provided to customers. Services must be designed as per need
and expectations of customer so that goals and objectives can be accomplished effectively.
Additional support of further services is also significant because it allows in meeting objectives. Rooms
must be properly clean so that hygiene factor standards and considered effectively in order to have
promotion of services. Members must have proper information about key responsibilities so that issues
can be overcome in desired manner. Accommodation of the client mostly depends on the tour packages
provided by tour operators. Room service and food service to the room are also key factor that promotes
development of hospitality firm in accurate manner. Support of additional services like restaurant,
entertainment services, etc. also need to be consider as critical aspect so that issues can be overcome in
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desired way. Uniqueness at workplace also need to be developed so that better strategies can be developed
to meet goals and objectives.
TASK 2
2.1 Analyse the implications of integration on travel and tourism
In today's complex business the role of hospitality sectors has increases with the collaboration of
travel and tourism services with the existing services provided by the business to its customers. This
sector is having collective working that provide various opportunities in different forms. Different
services provided by tour operators, restaurants, lodges, transportation are key supportive segments that
allows in meeting objectives in appropriate manner. Hospitality firms also need to consider diverse
factors such as housekeeping services, catering management, travel related services to lure wide number
of customers. Internalization is one of the concept of integration in which internal business operations are
transform intro various qualities and attributes of an enterprise that reflects firm's ability. In this important
factors the internal business proceedings are prepared as per various quality standard which are required
to met by the hospitality firms to ensure all the global standards. This quality maintenance will help an
enterprise in order to meet all the goals and objectives in order to provide high quality of services.
Integration concept firstly introduced in these sectors in the 1990's when the primary focus of the
business is on reaching different economies of scale which will further benefit an organisation. The
famous costs of this integration in order to minimise their operating costs. The cost of production of an
entity will be reduces the cost of purchases in order to increase the sales and the revenue. It is that
approach adopted by the firm by utilising their internal skills and capabilities in order to save money
which will further utilise in purchasing investments to be applied in another business in order to ear
interest. The business uses its in-house services to avoid the use of outsourcing as it costs higher and able
to reduce the cost of the business and decreases the profit level.
There are two standard forms of integration techniques used by an enterprise in order to move ahead in a
particular direction which are given as below:
Vertical integration- It is a process which helps an enterprise to buy producer of another firm in form of
distribution chain or involves in merger agreement form among two organisation in the same industry that
is the hospitality industry. For instance, Hilton hotel and Marriott international involves in the merger that
form among the two organisations. This approach is commonly used by an organisation in order to
maximise their profitability and also benefits other firm in reducing their costs involved in business
operations. This vertical integration can be of two types that is both forward and backward.
Horizontal integration- It is essential tool used by an entity for business expansion of their existing
business enterprise. It is adopted by an entity for several reasons such as increasing customer base,
expanding economies of scale in form of production activity and maximisation of wealth of shareholders
by generating huge amount of profit. For instance, acquisition of Disney resort by hotel Hilton in the
same category of services current offered by the firm will be beneficial for them.
Impact of integration on hospitality sector can be of two types that is in both the aspects such as
positive or negative. One of the effect of this integration is will be create greater impact on the branding
of the firm that able to attract wide number of customers. This brand name will bring wide number of
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opportunities in terms of customers and new investors as it is that emotions which related to the personal
experiences with the brand. The success of tourism industry will be goes top its efforts made by
increasing and building the brand name in form of reputation in the market. For instance, Hilton hotel
expect the same check in and check out procedures in order to deliver lavish services to create their
brands name among customers.
2.2 Explain the effect of integration on hospitality sector
There are several kinds of impacts in hospitality sector which imposes different challenges in
order to pull down the new enterprises in order to gain higher market share. The globalisation can be well
utilised by an enterprise which should be properly utilised by an enterprise in different manner as the
external threats are there to decline the existing business performance. There are different impacts of the
adoption of integration concept in the business concern which are further explained below:
Economies of scale-The major concern of an entity was to reduce the cost of the business by adopting
various ways and means that help an organisation to meet their desired goals and objectives within less
period. The operation costs can be reduced with the integration of the existing business concern. Tour
operator acquire hotel then basic costs associated with this decision is the initial investment for
purchasing the existing business would be high but which will reap several of benefits in terms of
interests and higher level of profit by increasing sales and the revenue. The initial cost will be covered by
providing wide variety of products or services to lure different set of customers. This integration would
allow the existing firm that is the tour operator to reduce its dependency on other firms in order to provide
accommodation services which will involves higher costs. This step taken by the business will proves
beneficial for them in order to increase the existing economies of scale.
Market share- The above mentioned integration have twin benefits as it is increases the economies of
scale along with the higher market share captured by the firm. The pricing of tour packages will be less as
the cost of accommodation will also form part of the tour packages. This strategy will help travel agent to
increase their customer base and maximises their current target market.
TASK 3
3.1 Development of rational plan
The rationale taken on the basis of chosen business plan as the decisions taken are linked with the target
market which has been selected for this kind of market is given below:
Development stage
Background
This proposes business project programme has devised for opening a new restaurant in one of the
engaged street in the London that is the Chelmsford street whose name is Reliable Restaurant. This
business has adopted a unique and different concept about this place as its lays more emphasise on its
overall theme that is “Ozone-friendly” that defines the nature in terms of all of its services. The attraction
of this natural place will mesmerise all its visitors as they feel comfortable environment where they take
peace and take some rest from the disturbances of the societal obligations. The basic rationale behind
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opening this kind of unique restaurant is that hospitality is the emerging sector who works at fast pace
which will proves beneficial for the owner in order to operate in this growing sector. Th owner will not
face any kind of complications as these sectors enhances all its internal capabilities.
Market research- Proper implementation of this proposed plan requires clear observation and
examination about all the prevalent trends in the market about this kind of sector. Essential element for an
enterprise before moving ahead in the business is to conduct overall market survey to identify all the pros
and cons of the given business to ascertain its survivability to the greater extent. The main aim of this
study is to collect information regarding the growth rate which in turn help an organisation to predict its
future. This market research will not only identify problems but also finds different business solutions
which can be taken by an enterprise owner in order to remove all its difficulties by taking innovative and
competitive advantage over its rivals.
Target market- The main target customers for this place is the youngsters and old age people who are diet
conscious and take serious decisions regarding their health by using all different types of organic foods in
order to remain healthy and stay fit. The products and services are designed as per their target market in
order deliver all the services according to the tastes and preferences of its customers.
Location- It also plays a dominant role as the location of this restaurant which is situated in the centre of
the London, UK in the Chelmsford street which is the famous shopping destination which gathers large
number of people every day which is good for sales and the revenue for this place owner.
Scale- The size of this place is large scale to gather wide number of people at the same place and deliver
all its services such as different variety of rooms, spas centre, beverages and restaurants, cafes to meet the
different needs and expectations of its clients.
Funding- Bank loan is the efficient sources of finance which can be opt by the owner of this place as this
will meet all its demands with minimum costs in the form of interest.
Along with the amount of bank loan the owner can also use its personal savings or money can be
borrowed from its friends and relatives.
Goods and services- The designing of all the products and services are as per the tastes and preferences of
its customers. The unique approaches should be used by the owner of this place as the creativity reflected
in serving all the products in unique way will influence the customers and attract them towards the
uniqueness of an enterprise and the place. Variety of food offer by this restaurant will also attract clients
and they also promote all the delicious and the tasty food of this place as the menu can ranges from
different types of foods such as Chinese, Italian, continental, Thai, Indian, organic. The speciality of this
place is that the menu contain all types food that is all junk food that is pizza and burger are placed in a
plate in a junky way but contains all organic food which is full of nutritiousness.
Licensing- The permission from local authority should be taken before establishing any restaurant in any
place which further creates barrier.
Designing stage
Interior design- The interior's beauty of the place should be as per the “Ozone-friendly theme to attract
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customers as they feel natural atmosphere. The furniture and the sitting are should be made up of leaves
and wood to give a feeling of jungle or natural environment to do a justice with a theme. The uniform of
all the waiters are made up of organic material and all other decorations with the leaf, plantation of trees
and few baby plants on the table. Using organic and recycled material the cost of interiors can be
minimised in order to establish a restaurant in a low budget to maximise the earnings rather its cost.
Culture- The organisation culture should be perfectly designed in order to influence the minds of all the
clients that they are in nature and they are feeling natural environment by building small jacuzzi below
the table of every customer to give relaxation.
Brand- The quality of services provided to all the clients should be provided taken into consideration the
image of the organisation.
External- The area all over the restaurant should be properly designed as most of the clients also like
sitting in lawn area and garden which is decorated with the swimming pool to give a feeling of a beach.
The concentration of the business owner is not restricted to the internal restaurant place but also it
expands in developing its external area as the attractiveness of the outside area will attract customers to
come inside and see its internal beauty.
Functional area- According to the varied functions which helps Reliable in managing its performance by
closely monitoring all the changes that can be positive or negative. This monitoring is essential as it helps
an organisation to consider all the weakness of the organisations that is the low efficiency of the firm by
completing all its duties in stipulated time period. Designing of separate kitchen, reception area, bars and
other areas such as warehouse to store all the shares utilised in daily routine and administration of all the
stuff of the personnel working in an organisation.
Flow of customer- The primary objective of this hotel cum cafe is to facilitate all its clients by providing
different variety of services and accomplished all complex tasks in given time period. This flow of
customer has measured by check-in and check-outs from the hotel which is monitored by the receptionist
by maintaining all the records of the clients electronically.
Relationship with target market- Old age persons and youngsters are selected for this business plan
which is for opening a new restaurant such as Reliable hotel. The primary objective behind this business
plan is to focus on the targeted market segment to ensure that the prospective buyers of the hotel should
be retain with the enterprises. The mandatory obligation on every business to segment its overall market
into different parts to ascertain its efficiency in the future.
Personal needs of the clients- As per the target segmentation study, goods and services are designed as
per the tastes and expectations of the purchasers which is offered at cheap rates to attract price sensitive
clients.
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3.2 Developing business plan for operational requirements
In hospitality industry, personnel plays a significant role in creating a change in the society as all
the action taken by these workers in terms of attracting customers will positively or negatively affect an
enterprise's performance. These services are offered in effective way in order to achieve the customer
satisfaction. Following are the different process which can be implemented in human resource allocation
which are given below in relation to the reliable hotel which are mentioned below:
Functional staff- As per the cited case given above, where new restaurant business plan has been
proposed which reveals the staffing requirement of an enterprise. It involves that the 2 receptionist to be
included to take care about the overall restaurant. Apart from appointing receptionist the need for servers
and waiters are also arises as they are the people who serve the delicious food prepared by the restaurant.
The number of staff which is required in this place involves 10 servers who serve the food and deliver all
kind of services. Functional and most important staff member is the chefs who prepared all the food and
beverages to lure the customers.
Staff qualifications: The receptionist appointed in this place should have bachelor degree holder in the
hospitality and tourism sector and also possess good communication skills and interpersonal skills. The
servers and waitress should have at-least 2-3 years of experience in serving the food from a good
university. The chefs and executives must have good degree in corporate work experience for 8-10 years.
Seasonal staff issues- Seasonal issues posses serious challenges in terms of declining the number of
personnels sin the restaurant in terms of stock level, personnel, utility requirements, food cost, workings
hours involves in the overall operation. During these times reliable hotel has required to recruit new
workforces as er their ability and give training to regular employees in order to retain them.
Cultural diversity : The staff requirement of this reliable hotel is fulfilled by recruiting different personnel
from varied culture which promotes social equality and also faces serious challenges to an enterprise in
terms of culturally diverse peoples. Training and development approach used by an organisation which
further helps them in order to deal with all the workplace complexities, conflicts among new people from
different cultures.
Recruitment: The major responsibility of HR manager is to maintain coordination and discipline in the
work environment by forming accurate recruitment organisational policies and programmes in the firm.
Organising of different interviews and sessions which is essential for an organisation in order to improve
its existing performances.
Legislations: Operating a successful organisation reliable hotel is required to comply with all the legal
policies framed by the legal environment while recruiting any kind of employee in its organisation. There
should be no discrimination takes place at the workplace related to anything such as gender, caste and
racism.
Promotion activities: The marketing of this place is to be conducted by choosing different mediums such
as radio, television, newspapers, press releases, developing websites, building mobile application, social
media sites such as twitter and linked in. These ways help an enterprise to enhance its image in the market
and reach wide number of audiences in order attracting them towards the hotel's best services.
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Pricing: After conducting every activities the next step comes is the setting ODF pricing which sis the
only factor that attracts more number of customers as this is the only monetary factor that influence a
client. For this reliable hotel uses cost plus pricing techniques in which specific amount of profit
percentage has included with the cost price of a vendor.
CONCLUSION
It can be summarised from the above project report that simple touch of hospitality industry
enhances the overall tourism and travel sector by increasing their scope. The increasing business goals
and the objectives is due to the clear combination of both the industry together working in a correct
alignment that is bothy hospitality and the travel sector. The main aim of these two sectors is to provide
quality oriented services to all of its customers. This report gives more emphasises to all the aims and
responsibilities which needs to be taken care in order to accomplish all of its objectives. Integration has
positively affected an enterprise's performance which has clearly shown from rights project report.
Emerging business plan is a prospective plan to attract all kind of customers whether it can be regular as
well as the potential customers. The decisions taken on the basis of designed business plan has been taken
into considerations in the given project. Finally, it also involves various things which should be taken into
consideration about the development of the business plan that shows operational activities.
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