Hospitality Provisions Report

This report examines the relationship between hospitality and the travel and tourism industry, analyzing the effects of integration strategies on hospitality businesses. It then proposes a new hospitality project, outlining its rationale, target market, and human resource allocation plan. The report provides a comprehensive overview of the hospitality industry and its integration within the travel and tourism sector.

Hospitality Provisions

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship Between Hospitality and Wider Travel and Tourism Business............1
TASK 2............................................................................................................................................3
2.1 Integration in Hospitality Sector and Analyse How Horizontal and Vertical Integration in
the Industry Affects the Hospitality Businesses.....................................................................3
2.2 Discuss how Integration has Affected a Hospitality Business.........................................4
TASK 3............................................................................................................................................5
3.1 Develop a Rationale for Selected Project Clearly Justifying Decisions Linked to Target
Market.....................................................................................................................................5
3.2 Develop a Plan for Hospitality Business in Relation to Human Resource Allocation.....7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is one of the major part of service industry. This industry does not
produce tangible goods. They produce intangible services to their customers for providing them
better experience (Hospitality Industry, 2018). Travel and tourism sectors is also one of the
major service industry which generate maximum revenue in service sector. In the world of
technology, customers are more aware about adventurous places and different countries which
support tourism sector. This report is based on Thomas Cook Airlines which operate their
services around the UK. It is a part of airlines department. It was founded in 31 March 2003. In
this report there will be a discussion about interrelationship between hospitality and travel and
tourism organisation. Integration strategy in hospitality sector and its impact on organisation.
Apart from this, development of rationale for a new hospitality project is also given in this. At
last, developing of project proposal will discuss.
TASK 1
1.1 Interrelationship Between Hospitality and Wider Travel and Tourism Business
Hospitality
Its refers to serving of visitors through welcoming nature. It require the skills of different
department and skills of staff who can handle the customers and satisfy their needs. To achieve
the goals and objectives of an organisation, tourist manager provide better quality to their
customers and visitors. Thomas Cook Airlines provide better services to their passengers which
helps to enhance their brand image.
Hospitality Provision
These provisions consist various management services, airport facilities, travel and
tourism sector, recreation and accommodation etc. The products are tangible and intangible in
nature which can be consumed by the visitors (Boniface, Cooper and Cooper, 2016). Leisure
facilities, transportation system and various attractions for tourists and passengers are included in
hospitality provision.
Scope and scale of hospitality industry within travel and tourism sector
Scope- Hospitality industry operating within travel and tourism sector have wider scope
in contribution of GDP, job opportunity, turnover etc. Airlines include hospitality industry
because its main function is to provide services to customers and satisfy their needs.
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Scale- Airports, airlines, management, tourist office, lodging etc. which reflects that there
is a high scale of travel and tourism in hospitality industry.
The interrelationships of Hospitality provision and travel and tourism
Hospitality provisions and travel and tourism sectors are interrelated to each other in an
effective manner. As per the present scenario, tourism and travelling sector gaining the growth in
very fast manner. Which hospitality sector and travel and tourism sector are combine together
and they attract more and more customers by which profit of both the firms are increases rapidly.
Generally, profit of travel and tourism sector is depend on hospitality sector because when hotel
industry provide better services to their customers then clients wants to visit that place. For this,
hospitality sector need to develop their products and services and welcoming their customers in a
polite manner and provide them better accommodation and food and satisfy their needs which
ultimately helps to increase profit of Thomas Cook Airlines (Brooker and Joppe, 2014). It is a
responsibility of both hospitality and travelling sector to enhance the experience of service user
by which they visit the place again and again.
Importance of the hospitality provision within travel
Hospitality are play an important role in travel and tourism sector. In current scenario,
hospitality services are consult with travel and tourism sector when they buy any package of
travel and tourism. It tends to indicate the fast growth in significance of hospitality sector. When
there is a large number of passengers are travel in Thomas Cook Airlines then they also required
to different services like accommodation, food and beverage, standard and quality products and
services etc. it helps to enhance the growth of both the sectors. The services of hospitality
industry can be enhanced by analysing the demand of customers which is different in urban and
rural areas. In UK, travelling and hospitality industry is growing faster because there is large
number of passengers and visitors are visit the place of a country.
Interrelation between travel and tourism sector and hospitality industry
Travel and tourism has been classified into different sub-sectors. Which are interrelated
with hospitality industry. Products and services provided by both are the sectors are also
interrelated with each other (Cornelissen, 2017). Travelling packages, holiday package, buy one
get one free ticket offer, discounting offer in hotels etc. are inter-connected through each other.
Hospitality services includes tourists’ attractions, leisure services, transport services, recreational
services etc. which impact on success of travel and tourism sector. Thomas Cook Airlines is
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deals in travelling and tourism industry which provide service to their passengers related to
tourism package, relaxation features during trip, better quality of food and beverages, welcoming
behaviour etc.
Role of hospitality function in tourism sector
Hospitality industry is growing at a fast speed and is promoting the growth of multicultural
environment. Terms hospitality and tourism both are co related with each other. Tourism sectors
involve the individual goes to other places for enjoyment, business purpose or for other reasons.
Hospitality provision is known for provide accommodation, meals, venues and drinks to the
individuals who are out of their homes or who go to visit other places. Both sectors cover
accommodations, restaurants, hotels and entertainment activities.
TASK 2
2.1 Integration in Hospitality Sector and Analyse How Horizontal and Vertical Integration in the
Industry Affects the Hospitality Businesses
Integration of hospitality services
An integration is a process through which an organisation can enlarge their presence of
business and also enhance their revenue by a specific product development. This process is
repeated by an organisation to gain more and more profit. A business should have knowledge of
this process and about the activities which are interrelated with integration. With integration
strategy, hospitality industry can expand its product and services in other areas(Dickinson and et.
al., 2014). Hospitality organisations adopts the strategy of integration for offering better quality
of products and service to their customers. When Thomas Cook Airlines improves their present
quality and decrease the cost of services then they can adopt the strategy of integration which
helps them to gain competitive advantage. Integration can be divided into two parts: horizontal
and vertical integration. Detailed discussion of these are as follows:-
Horizontal integration- Strategy of acquiring small organisations in market which can
be the potential competitors in future is known as horizontal integration. It is an appearance
different large departments in a main management. When there are two different industries who
are come together and become a new bigger industry is a process of horizontal integration. This
type of integration results in increase number of customer and also increase the profits of
company. For example: if Thomas Cook Airlines acquire British Airways then it will be
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considered as horizontal integration. Strategy of merger and acquisition are also include in
horizontal integration (El-Gohary, 2016).
Vertical integration- When a firm purchase another organisation in distribution chain or
purchase their suppliers is known as vertical integration. It is a single supply chain than more
than one system of management which develop different products and services and offer them in
a combine manner to their customers. It helps to minimise the operating cost and maximisation
of profitability. For illustration: if Thomas Cook Airlines acquire Hilton Hotel and restaurant
then these are two different sector industries whose combination is provide their customers better
services and increase profit of these sectors it is an example of vertical integration.
Implications of Integration in Hospitality Business
 Hospitality sectors generally using horizontal integration in which they offer one type of
product and services to their customers. Thomas Cook Airlines have to use this strategy
to combine their services with other similar sector for better growth and success.
 When there is two big organisations are integrated with each other then it make negative
effect on society (Law and et. al., 2015). Because when there is an integration between
two strong person then it create problem from small sectors because it is difficult for
them to survive in hospitality industry. More people are unemployed if small
organisations are throw out from market.
 Sometimes, the situation of integration is create conflicts. For instance: those firms who
are combine together have different vision, mission, goals and objectives which create
conflicts among them and also affect he decision making process of hospitality industry.
 Globalization is also affect hospitality industry. Travel and tourism sector is a great
source of generating revenue so all the countries are encourage to their tourism sector to
globalise their business in the whole world. Because as compared to local tourists,
international tourists create more revenue.
2.2 Discuss how Integration has Affected a Hospitality Business
Integration make a large impact on every sector including hospitality industry both in
positive and negative way. It helps to reducing cost and increasing economies of scope and scale.
It is beneficial for Thomas Cook Airlines to getting consumer satisfaction by having command
on purchasing and marketing process (Medhekar, 2014). Hospitality business can take whole
customer experience by providing them everything from travelling to accommodation and food.
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It help to save both time and money of both customers and organisations. In this process, raw
material are made by company with lesser price and they don't buy raw material from supplier.
This saving helps to provide better service to their customers at low prices which attract more
consumers and increase the market share and revenue of Thomas Cook Airlines. Travel and
tourism sector is not depends on hospitality business because Thomas Cook Airlines have its
own hotel which take the travellers from airport to hotel. It also provide facility to their
customers to book the whole trip package from Thomas Cook Airlines.
Integration is a process or strategy which give opportunity to different sectors to expand
their business and diversify their firm in different locations. When a company acquire competitor
in new country then it enhance their presence in global market. It also provide an opportunity to
hospitality sector to expand their goods and services. Food and beverage, comfort etc. can be
provided to passengers at one place (Mohsin, Ramli and Alkhulayfi, 2016). It helps to renewing
the brand image of non performing firm which create synergy between different activities in
Thomas Cook Airlines. Impact of integration are discuss as under:-
 The positive impact of integration is that it provide competitive advantage to Thomas
Cook Airlines. When two large companies are combine together then it satisfy a lot of
customers and attract more visitors.
 When two companies are integrated with each other then it create monopoly in market
where only few firm are available. Through which customers have no choices to select or
compare of services with other firm of similar sector.
 Integration help Thomas cook to achieve high scale of economies. It also helps to reduce
the cost of operations and enhance the profitability.
 By following the vertical or horizontal integration, Thomas Cook Airlines can increase
their profit by reducing cost (Neuhofer, Buhalis and Ladkin, 2015).
 Integration is a process which diversify the business in different countries. It offers new
products and services which ultimately enhance the customers base and make positive
impact by increasing profit of Thomas Cook Airlines.
TASK 3
3.1 Develop a Rationale for Selected Project Clearly Justifying Decisions Linked to Target
Market
The rationale development for hospitality organisation is discuss as below: -
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Idea- A plan would be opening a new business which consist of airline combine with
aircraft. This setup will be at the location of tourist in United Kingdom. This is because of
increasing demand of airlines is very high due to increasing number of population of passengers
travelling to United Kingdom every year. It indicates that there is a large potential of this
organisation. There is very tough competition in this segment. But a plan is made by Thomas
Cook Airlines is that they focus on middle class family who can't afford the luxury services
provide by their competitors. They want to provide their customers best services in a budget and
affordable prices. It Thomas Cook Airlines provided better services to their customers then they
will travel and visit the destination of UK again and again. It helps to enhance the national
income of the country (Page, 2014). Inflow of foreign currency is also increases. It is just a
starting plan which consist the expansion of geographical locations as well as other segments.
This step needs a lot of market research on travelling and tourism industry.
Market Research- Market research is necessary for launching a new firm because it
provide a critical result to deciding the growth and success of an organisation. Market research
include different types of research techniques which include questionnaires which is filled by
people and also take personal interviews from those customers who buy products and services. It
will helps to estimation of expectation of consumers and then they can easily planned about
which kind of product they should offer to their customers which increase profitability of an
organisation. Market research also helps to finding target customers who will happy and satisfied
with services and prices of Thomas Cook Airlines. With help of market research, company can
identify and examine the needs and wants of target customers. The sample size will be selecting
the 1000 passengers and tourists who will be visiting the tourist destination in United Kingdom.
Target Market- The target market is already discuss that is middle class family who
cannot be afford high package deals. Target segment will include the people from all ages
specially who like travelling and want to get best services in affordable prices. Geographical
location will be selected which is popular in United Kingdom (Robinson, Ruhanen and Breakey,
2016).
Target Location and Size of the business- As discussed before the geographical location
will be tourist destinations in UK where large number of middle class families are comes to visit.
Size of business will be large where approx 300 to 500 passengers can travel easily. They have to
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provide facility of business class and economy class. It will also consists of providing food and
beverages facilities.
Investment- The amount of investment can be own from personal amount and bank loan.
This ratio will be 50:50. products and services are offered which are best in quality that helps to
satisfy the need of passengers.
Licensing- All the activities should be done through proper licensing system. All legal
undertakings should be done which is necessary to open or run a new venture business.
3.2 Develop a Plan for Hospitality Business in Relation to Human Resource Allocation
In order to develop a plan for hospitality organisation there is a requirement of different
stages and organisational structure along with human resource allocation. The stages includes
development, design and operations. Detailed discussion of these are as follows:-
Stage 1: Development
Concept of business: At the time of developing a firm, it is necessary to identify the
concept of an organisation which helps to generate ideas, mission and vision statement of an
organisation. It helps to achieve goals and objective of hospitality firm and gain competitive
advantage. Vision of new product should be maximum customer satisfaction (Sloan, Legrand
and Simons-Kaufmann, 2014).
Market research: It is important for Thomas Cook Airlines to conduct a market research
when they develop a new project. It helps them to identify the need of customers and other
factors which can contribute them to gain sustainable competitive advantage.
Target market: A market is to be targeted on which they have to focus through
geographical area, behavioural segmentation and demographic segmentation. In this process,
passengers and their need are also focusing by Thomas Cook Airlines.
Location: The location of new project developed by Thomas Cook Airlines should be
decided where large number of visitors can visit their area.
Products and services: Products and services offered by Thomas Cook Airlines should be
very high in quality with satisfy the needs of customers. Other than this, quality of food and level
of comfort during travelling should also by good.
Stage 2: Design
Atmosphere: This internal environment of hospitality business should be good which
attract more and more customers (Smith and Puczkó, 2014). It can be developed with innovative
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strategies and taking corrective measures. Thomas Cook Airlines have to focus on safety of
passengers.
Culture: The culture of hospitality business should be required for attracting various
types of tourist from different culture and regions. Customers will get satisfied when they are
welcomed as per their style of culture.
Brand: It is very important factor to attract new clients with keeping of existing clients.
Hospitality sector have to develop their strategy and using different promotional techniques
which helps to enhance the the brand image of Thomas Cook Airlines.
Interior: The interior design of hospitality business will be developed with the quality of
services provided by them to their customers (Standing, Tang-Taye and Boyer, 2014).
Welcoming behaviour of staff should also polite in front of customers by which they get good
experience from the new project.
Exterior: This area refers to surrounding area of the Thomas Cook Airlines which should
be along with features of car parking, garden area and other facilities with proper arrangements.
Customer flows: It can be observed by targeting of inbound and outbound customers.
Thomas Cook Airlines have to analyse that foreign tourists are enhance their profit revenue and
attract more visitors with beneficial deals.
Link to target market: Target market should be linked with the new project development
of hospitality business. They also analyse preferences of customers which are altered timely.
Sustainability: This process deals with developing a project with more efficient manner
by which Thomas Cook Airlines can sustain long term in market by gaining competitive
advantage.
Stage 3: Operations
Staffing by functional areas: it deals with different functional areas such as:-
 Finance
 Front line staff
 Management team and managers
 Transportation system
 Supervisors or line managers
 Housekeeping staffs
 Security staff
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 Staffs in food and beverage area such as cook
 Development area management
Staff of Thomas Cook Airlines are the main representativeness of the image of travel and
tourism sector as well as hospitality sector. Success of a new project development is depends on
skills and behaviour of employees which they present in front of customers. Customers feel
happy when they are treated as respectively. It also provide them positive experience and helps
to gain organisation to attain their objectives. Thomas Cook Airlines have to focus on their staff
with specialist qualification, cultural diversity in which they can deal with without any conflicts.
Promotional activities should also offer to them by which they perform their work in effective
and efficient manner.
Staffing model: One of the most common model use by businesses is Jack of all trades in
this a single individual in enterprise becomes synonymous with back office. Individual start out
to perform a specific role but as the time passes assumes the responsibility for everything
including bookkeeping, information technology, human resources and many more. This model is
largely driven by the company’s desire to contain costs. Company invite applicants and examine
their skills in order to select the best one to perform different roles at workplace.
CONCLUSION
From the above mentioned report it can be concluded that there is an interrelationship
between hospitality and travel and tourism sector which helps them for better growth and gain
competitive advantage. When hospitality sector business is integrated with other organisation in
the way of vertically or horizontally then it helps to make a firm bigger and stronger. Process of
integration make positive impact on organisation. Rational is developed for opening a new
hospitality business with the concept of goods and services. While developing a project proposal
some criteria are analysed related to location, target market, operational model, staffing and
design which is based on market potential analysis.
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REFERENCES
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