Exploring the Intersections of Law, Economics, and Hospitality in Tourism

The provided assignment content consists of various academic papers and online sources related to law, economics, hospitality, tourism, and business. The papers cover topics such as vertical integration, market competition, product market dynamics, and the application of horizontal and vertical integration in different industries. Additionally, there are online sources on the core values of Thomas Cook and the scope of the contemporary tourism sector.

Hospitality Provisions

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
A. Stating the scope and scale of the hospitality industry within the travel and tourism sector
and examining the role of hospitality functions in the context of Thomas cook...................2
TASK 2............................................................................................................................................4
A. Ways through which horizontal and vertical integration in the travel and tourism sector
affects the hospitality organizations.......................................................................................4
B. Impact of the horizontal and vertical integration upon Thomas cook and ways to respond
the consequences of such integration.....................................................................................5
TASK 3............................................................................................................................................6
A. Producing project proposal for new hospitality organization by analyzing the thorough
market potential......................................................................................................................6
B. Assessment of the financial feasibility of the proposed project on the basis of the expected
cash- flow analysis.................................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality provisions consist of legal rules and regulations in relation with the offering
of services to the guest. Hospitality laws and provisions provide protection to both personnel and
the guests against any injury. In addition to this, hospitality provisions also states duties and
responsibilities of the company towards their guests who stay in the hotel (Norton, 2015). Such
provisions provide health and safe environment to their guests. For this project report, Thomas
cook is selected which is the largest global and British travel and tourism company. It is the Plc
and listed on the London stock exchange. Thomas Cook offers employment to 22672 people who
entail the success story of the business operations and functions of itself.
In addition to this, Thomas cook offers chartered airlines services to their customers.
Besides this, it also offer holiday packages to customers at cost effective rates. The core values
of Thomas cook is to offer unique or innovative services to their customers which help in
satisfying the customer. Along with it, Thomas Cook places emphasis on delivering quality
services to their customers and thereby shows their commitment towards attainment of the
organizational goals and objectives. Further, Thomas cook maintains high ethical standards in
their working practices and operations. Through this, organization built their distinct image in
the mind of target customer. This aspect also states the transparency of the company towards
their work and stakeholders. In addition to this, Thomas Cook stresses that employees are the
main asset of an organization. Thus, organization encourages and inspires human resource of an
organization to effectively contribute in the achievement of organizational goals and objectives
(Core values of Thomas cook, 2015).
The present report will discuss scope and scale of the hospitality industry within the
travel and tourism sector. In addition this, it will also develop understanding towards the
hospitality provisions which closely impacts business operations and functions of Travel and
tourism. Besides this, it also depicts the interrelationship between the hospitality and travel and
tourism sector. This report also states the ways through which the horizontal and vertical
integration in travel and tourism affects the hospitality organizations. It also represents the ways
through which organization can respond to the consequences of horizontal and vertical
integration. Further, it also depicts the proposal which includes target market, location, operating
model and design which is derived through the analysis of market potential.
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TASK 1
A. Stating the scope and scale of the hospitality industry within the travel and tourism sector and
examining the role of hospitality functions in the context of Thomas cook
Travel and tourism industry or sector offers wide range of the products and services to
their customers. From airlines services to the stay, lunch, dinner, outings and other adventurous
programs are planned by travel and tourism industry. In the present scenario, there is the trend in
which the customer takes the holiday packages and thereby enjoys the vacations to the large
extent (Sadiku, 2014). Nowadays people prefer to approach the travel and tourism organization
who offers them number of destinations with the staying facilities at cost effective rates. This
aspect clearly states that the travel and tourism industry is continuously growing.
As hospitality industry is highly associated with the travel and tourism sector. Thus,
scope and scale of hospitality organizations is very wide. Moreover, travel and tourism
organization also offers the staying facilities to their customers. This aspect also shows the
growing trend of the business operations and functions of hospitality organizations (The Scope of
the Contemporary Tourism Sector, 2015). Companies who operate in the hospitality industry can
maximize their profit by collaborating with travel and tourism organizations. It provides
opportunity to the hospitality organization to offer quality and satisfactorily services to their
customers and thereby building customer loyalty (Strange, M. and Lundberg, 2014). Along with
staying facilitates, hospitality organization offer the dining facilities to their customers. It shows
wide scope and growing trend of hospitality industry within the travel and tourism sector.
Hospitality industry undertakes various business operations and functions which also
plays a vital role in growth and development of Thomas cook. Company which operates in the
hospitality industry also offers diverse range of the products and services to their customers.
Travel and tourism executive of Thomas cook have identified that hospitality functions provides
assistance to the organization in developing satisfaction among the customers. As hospitality
organization take order from the guests and there by prepares the food by taking into
consideration the needs and wants of the guest. In addition to this, they serve food to the guests
as well as also deliver food to the gust in their room as per their instructions (Liu and et.al,
2015). Besides this, hospitality organization also offers gym, pool and other facilities to their
customers. Along with the good destinations customers also prefers the better staying facilities
which made their vacations memorable. Travel and tourism executive have assessed that
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hospitality functions make remarkable contribution in increasing productivity and profitability of
an organization.
B. Role of hospitality provisions in relations to operations of travel and tourism and stating the
interrelationship between the hospitality and travel and tourism
Hospitality provisions play a significant role within the business operations and functions
of the travel and tourism. Hospitality industry provides various facilities to their customers or
guests. It includes the accommodation services, membership in the clubs and events as well as
bar and night club facilities to their customers. In the present era, guests give priority to all these
aspects while they make decision about the tour packagers. By giving membership in the club
hotel develops the feeling of association with the guests (Blair and Kaserman, 2014). Bars and
pubs are the part of the life style of customers who resides at global level. Thus, by offering the
bar and pub facilities hospitality organization or industry satisfies the living standards of the
guests.
In addition to this, hospitality organization also offers the transportation facilities to their
customers. For instance: Hotel makes arrangements for their guest to visit all the attraction points
or sight seen. It is one of the main aspects which evolve satisfaction among the customers or
guest. In addition to this, hospitality industry also makes arrangements the professionals in
relation to the business meetings, conferences and seminars. Now-a-days organization prefers to
conduct their business meetings and other curricular activities outside the business organization.
Through this, organization is able to build the effective policies and strategies which help them
in achieving success. Besides this, when organization conducts the seminars and conferences at
the different place then employees are encourage to learn the things with the high level of
dedication (Walker and et.al, 2015). By making such arrangements hospitality industry make
contribution the growth and success of the travel and tourism sector. For instance: Thomas cook
also frame and offer the tour packages to the business organization and professionalist. The
above mentioned hospitality provisions play a crucial role in the growth the business operations
and functions of travel and tourism.
There is the high interrelationship between the hospitality and travel and tourism sector.
Hospitality industry offers accommodation, food and beverages, transportation, recreation and
leisure facilities to their customers. Further, travel and tourism organization offers destinations
which make their vacations memorable. On the basis of these aspects, it can be stated that
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hospitality industry act as a supplier for the travel and tourism organization, For instance:
Hospitality organization offers varieties of services to the customers such as business travel,
aviation, conferences and exhibitions. These services are the main part of the travel and tourism
sector (Hong, Zhonggao and Chen, 2015). Thomas cook offers the airlines, tour packages and
other kind travel services such as business specific. Therefore, it also provides accommodation,
food and beverages, recreational and leisure facilities to their guests or customers. Thus,
hospitality industry and travel and tourism sector is highly interrelated with each other.
TASK 2
A. Ways through which horizontal and vertical integration in the travel and tourism sector affects
the hospitality organizations
Horizontal integration may be defined as a strategy in which company acquires the other
organization that operates in the similar industry. For instance: Thomas cook acquires the other
mom- profitable organization that operates in the travel and tourism industry. By this, Thomas
cook can expand their business operations and functions to the large extent. This aspect closely
impacts the organization that functions in the hospitality industry. When horizontal integration
takes place within the hospitality industry then there is the reduction in the number of the firms
who operates in the travel and tourism sector. On the basis of this aspect Thomas cook is able to
exert control upon the sub sectors. Horizontal integration which takes place in the travel and
tourism sector negatively impacts the bargaining power of hospitality industry (Loertscher and
Reisinger, 2014). Moreover, due to horizontal integration independent business is also
decreasing. Thus, Thomas cook has the power to charge high commission from the hospitality
organizations because output of the hotel is highly associated with the travel and tourism sector.
Vertical integration consists of the expansion of the business operations and functions in
the areas which is highly associated with their existing business. Vertical integration consists of
two types such as forward and backward integration. One of the main examples of forward
integration is that Thomas cook have agreed to merge their business to my travel in order to cut
the cost of airliners. Through this, they are able to reduce the conflicts and competitions from the
low cost airlines as well as web based travel agents. Through this, organization is able to attain
the competitive advantage over their rivals.
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On other hand, backward integration represents the situation in which company purchaser
or internally started to produce the part of its supply chain. For instance: Thomas cook opens the
hotel and resorts in order to expand their business operations and functions. This aspect directly
impacts the productivity and profitability of an organization. As Thomas cook have their own
restaurant which may cause of the decreasing in the output of the hospitality industry which they
earn through travel and tourism (Shin, Lim and Shin, 2014). Due to their own hotel and resorts
Thomas cook does not approaches the other hotels. It is one of the main causes which hamper the
growth aspects of hospitality organization.
B. Impact of the horizontal and vertical integration upon Thomas cook and ways to respond the
consequences of such integration
Horizontal and vertical integration closely impacts the business strategies and policies of
Thomas cook. Horizontal integration places positive impact upon the Thomas cook to the large
extent. In horizontal integration Thomas acquires the firms which are not highly profitable and
there by expand their business functions. Horizontal integration may result into the reduction in
the independent business organization. In addition to this, when Thomas cook expand their
business operations then they enjoy the economies of scale in their business operations (Ozdemir
and et.al, 2014). This aspect helps organization in achieving success in the dynamic business
environment.
Besides this, through horizontal integration Thomas cook can make standardization in the
services which are offered by the travel and tourism sector. Further, it enables organization to
increase the globalization of the industry in which they perform their functions. Nevertheless, if
Thomas cook acquires the other firm then they face difficulty in coping up with the existing
business management and functions of that organization. Thus, Thomas cook can easily respond
to this situation by framing the effective strategies and policies (Benito and et.al, 2015).
Along with it, Thomas cook opened their own hotel and resorts to reduce their
dependency from other hotel who offers the accommodation services to the guest. Through this,
company is able to improve their profit margin. Nevertheless, there is huge competition in the
hospitality industry which also affects the functioning and profitability aspect of an organization
(Gursoy, Saayman and Sotiriadis, 2015). Besides this, market structure is also one of the main
aspects which impact the strategies and policies framed by Thomas cook. In this situation,
Thomas cook needs to offer the quality and innovative services to their customers. Through this,
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enterprise is able to build distinct image in the mind of target market and thereby increase the
market share. By placing more emphasis upon the branding and pricing policies company can
increase the revenue of an organization.
In the present era, branding is the important tool which helps organization in attracting
the large number of the customers and thereby builds the customer loyalty (Jo and et.al, 2015). It
also enables organization to compete with the larger organization who offers their services in the
hospitality industry. In addition this, through merger with the My trip Thomas cook can enjoys
the benefits of economies of scale. Through this, organization can make control upon the market
and thereby take benefit from it. It helps organization in making contribution in the achievement
of organizational goals and objectives.
TASK 3
A. Producing project proposal for new hospitality organization by analyzing the thorough market
potential
Project proposal for Weekends special are enumerated below:
By undertaking the research Weekends special have identified the products and services
which they requires to offer in order to evolve the satisfaction among them. In addition this,
proposal outlines the target market to which organization needs to serve their products which
helps them in increasing their gross margin. Besides this, through the research company has also
identified the most suitable location which helps them in attracting the large number of
customers. Various aspects of the proposal on the basis of the thorough market potential analysis
are as follows: Product or service: Weekend special will offer the luxury suits to their customers. Along
with the accommodation, it also offers the dining facilities to their customers according to
their taste and preferences. Hotel will also make arrangements in relation to visiting of
the famous places. It is one of the main feature which them in increasing the customer
base. In addition to this, hotel will offer the gym, yoga club, play zone, pub and bar
facilities which satisfies the needs and wants of the all segments of the customers. Target market: Medium to the high income group will be the target market of Weekend
special. By targeting such kind of the customers with their individual or specific need
company will attain the desired output or success.
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 Location: Weekend special will open their hotel and resort in the West London. Through
research they have assessed that by operating the hotel and resorts in West London they
become able to build and sustain competitive position over their rivals.
 Operating model: In order to deliver the quality services to the customers Weekend
special will recruit the people who are qualified in the hospitality area. In addition to this,
it will also place emphasis upon the recruitment of the experienced personnel which helps
them in offer the satisfactorily services to their customers. In addition to this, hotel
undertakes the social media marketing in order to promote their product and services at
global level. Further, weekend special sets competitive prices for the products and
services which are offered by them. Moreover, customers compares the quality of the
product and services with the price charges by the firm. Along with it, company also
follows the laws and legislation which helps them in developing the trust of the
customers in the firm's operations
 Design: Weekend special will design the rooms and other areas of the resorts and hotel
by taking into consideration the cultural aspects of the target market. Interior and exterior
are the main aspects of the design which attracts the large number of the customers to
make experience of the hotel.
B. Assessment of the financial feasibility of the proposed project on the basis of the expected
cash- flow analysis
Cash flow analysis provides deeper insight to an organization about the inflow and
outflow which organization generates or incur over a period of time (Gallarza and et.al, 2015).
Weekend special have assumed that revenue of an organization will increase up to 10% in each
year. On other hand, utilities and maintenance increases by 7%. Besides this, other expenses are
included on the basis of the estimation made by the finance manager. Cash budget of Weekend
special for the three years are as follows:
Pre-operating
year Year 1 Year 2 Year 3
Cash Inflow
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Owner's capital 300000 0 0 0
Bank Loan 200000 0 0 0
Revenue 0 510000 561000 605000
Total cash Inflow 500000 510000 561000 617100
Cash Outflow
Purchase of fixed assets 150000 0 0 0
Registration and legal charges 1000 0 0 0
Infrastructure & designing 60000 0 0 0
Utilities and maintenance 0 30000 32100 34347
Promotions and advertisements 40000 30000 28000 26500
Miscellaneous expenses 15000 8500 10000 10150
Total cash outflow 266000 68500 70100 70997
Net cash flow 234000 441500 490900 546103
Opening balance 0 234000 675500 11664000
Net cash flow 234000 441500 490900 546103
Closing balance 234000 675500 11664000 1712503
On the basis of the cash flow analysis it has been assessed that cash inflow of an
organization as compared to the expenses which they have to incur. It is the positive sign for an
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organization. As cash inflow of an organization is continuously increasing which shows that this
project proves to be more fruitful for Weekend special.
CONCLUSION
From this project report it has been concluded that scale of scope of hospitality industry
is very wide within the travel and tourism sector. It can be seen in the report that hospitality
functions play a significant role in the travel and tourism sector by maximizing the profitability.
Besides this, it can be inferred that there is high level of interrelationship exist between the
hospitality and travel and tourism. Further, it can be concluded that horizontal and vertical
integration closely impacts the business operations and functions of Thomas cook. Further, by
undertaking the effective measures to respond the consequences of integration Thomas cook can
build and sustain strategic advantage over others. Further, cash flow analysis shows that new
project proves to be more profitable for weekend special.
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REFERENCES
Books and Journals
Atalay, E., Hortaçsu, A. and Syverson, C., 2014. Vertical integration and input flows. The
American Economic Review. 104(4). pp.1120-1148.
Benito, V. and et.al., 2015. Safety and Feasibility Analysis of Laparoscopic Lymphadenectomy
in Pelvic Gynecologic Malignancies: A Prospective Study. International Journal of
Gynecological Cancer. 25(9). pp.1704-1710.
Blair, R.D. and Kaserman, D.L., 2014. Law and economics of vertical integration and control.
Academic Press.
Gallarza, M.G. and et.al., 2015. Value dimensions in consumers’ experience: Combining the
intra-and inter-variable approaches in the hospitality sector. International Journal of
Hospitality Management. 47. pp.140-150.
Gursoy, D., Saayman, M. and Sotiriadis, M.D. eds., 2015. Collaboration in Tourism Businesses
and Destinations: A Handbook. Emerald Group Publishing.
Hong, X., Zhonggao, L. and Chen, R., 2015. Product Market Competition, Asset Specificity and
Horizontal Merger. Nankai Business Review. 3. pp.006.
Jo, H. and et.al., 2015. A dynamic feasibility analysis of public investment projects: An
integrated approach using system dynamics and agent-based modeling. International
Journal of Project Management,. 33(8). pp.1863-1876.
Liu, Q. and et.al., 2015. An Application of Horizontal and Vertical Integration in Cyber-Physical
Production Systems. In Cyber-Enabled Distributed Computing and Knowledge Discovery
(CyberC), 2015 International Conference. IEEE.
Loertscher, S. and Reisinger, M., 2014. Market structure and the competitive effects of vertical
integration. The RAND Journal of Economics. 45(3). pp.471-494.
Norton, M.B., 2015. Hospitality in and beyond Religions and Politics. Derrida Today. 8(2).
pp.215-237.
Ozdemir, U. and et.al., 2014. Application of economical models for dye removal from aqueous
solutions: cash flow, cost–benefit, and alternative selection methods. Clean Technologies
and Environmental Policy. 16(2). pp.423-429.
Sadiku, M., 2014. A Tradition of Honor, Hospitality and Blood Feuds: Exploring the Kanun
Customary Law in Contemporary Albania. Balkan Social Science Review. (3). pp.93-113.
Shin, H.J., Lim, J.S. and Shin, S.H., 2014. Estimated ultimate recovery prediction using oil and
gas production decline curve analysis and cash flow analysis for resource play. Geosystem
Engineering. 17(1). pp.78-87.
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Strange, M. and Lundberg, A., 2014. Education as Hospitality. Peace Review. 26(2). pp.201-208.
Walker, T. and et.al., 2015. Mission tracker the first six months: web based solutions to
integration of horizontal and vertical cleft care in the developing world. International
Journal of Oral and Maxillofacial Surgery. 44. pp.e162.
Online
Core values of Thomas cook. 2015. Online. Available through:
<http://www.thomascookgroup.com/core-values/ >. [Accessed on 21st December 2015].
The Scope of the Contemporary Tourism Sector. 2015. pdf. Available through:
<http://www.goodfellowpublishers.com/free_files/Chapter%2010-
907e86ff267bbe35f241487e2dfd28d5.pdf>. [Accessed on 21st December 2015].
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