Impact of User-Generated Content on Tourism Industry

The provided content includes various articles and reports related to the hospitality and tourism industry. The topics covered include user-generated content in tourists' travel planning, accessible tourism experiences, SME training needs, destination management, event tourism, corporate social responsibility, innovation research, entrepreneurship, marketing, career goals of students, size and efficiency of the Italian hospitality sector, blogs in tourism, and online reputation management. Additionally, there are reports on the economic contribution of the UK hospitality industry, UK tourism statistics, and insights into leadership and management in the hospitality and tourism sector.

Hospitality Provisions in Travel and
Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
LO 1.1 Inter-relationship between hospitality and travel and tourism business..........................1
TASK 2............................................................................................................................................5
LO 2.1 Implications of integration to the hospitality industry....................................................5
LO 2.2 How integration has affected Qbic hotel.........................................................................6
TASK 3............................................................................................................................................7
LO 3.1 Rationale for a selected project.......................................................................................7
LO 3.2 Plan for the hospitality business including operational requirements.............................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

TABLE OF FIGURES
Figure 1: Inbound Tourism..............................................................................................................3
Figure 2: Visitor Number and Total Spend by Sector.....................................................................3
Figure 3: Organizational Structure................................................................................................11

INTRODUCTION
UK is one of the developed nations in the world. For the country its travel, tourism and
hospitality industry is of great importance. Together they constitute major income source for the
nation. Various policies and systems have been developed and implemented so as to facilitate
this sector in performing upto its optimal capacity (Barrows, 2011). Over the years numerous
studies and investigations have proved that hospitality and travel and tourism sectors very
closely related and depend on each other to perform better. According to these researches the
inter-relationship between these two sectors shows dependency of a nation of the leisure industry
and its importance for a country. Present report delves into explaining role of hospitality sector
within the travel and tourism business. In this regard, this study evaluates the impact of
integration within the hospitality industry. Furthermore a development plan of hospitality
business is also developed in the report. This study has been conducted on one of the leading
small hotels in UK – Qbic hotel.
TASK 1
LO 1.1 Inter-relationship between hospitality and travel and tourism business
Travel, tourism and hospitality are some of the most important industries in the UK. It
can be supported through fact that in 2014 alone, the hospitality industry provided more than 9
million jobs which amounted to 9% of employment in the country (The economic contribution of
the UK hospitality industry, 2015). Therefore leisure is one of the main contributors to national
income in UK. There have been various studies over the years which have found that hospitality
and travel and tourism sectors are inter-related, i.e. one cannot function without the other.
The hospitality industry can be divided into many sections like hotels, restaurants, pubs
and bars, nightclubs, contract foodservice providers, hospitality services, membership clubs,
events, etc. Hotels range from 1-5 star categories, budget hotels, bed and breakfasts (BnBs).
While restaurants can be sub-divided as fast food restaurants, cafes, coffee shops, fine dining
restaurants (Enz, 2010). Similarly other components of the hospitality industry have their further
sub-divisions, which show depth of the sector and highlights multiple layers that when work in
coordination with the travel and tourism industry can make substantial changes in a nation’s
economic conditions. Activities like conferences, events, business travels, leisure travels,
educational trips, etc. all form part of the travel and tourism industry (Getz, 2008). Therefore it
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can be said that anything related to transport of passenger from one place to another is travel and
tourism. In UK inbound, outbound as well as domestic travelling is very popular. It is one of the
leading tourism destinations in the world, which is a testament to the increasing travel and
tourism business in the country.
As stated above, the two sectors are inter-related. One very basic explanation in this
regard is that without the hospitality industry, people travelling from different places would not
have any place to live (Choi, Lehto and Morrison, 2007). This essentially means that they could
not have made a trip longer than one day only, because they will not have place to rest. In UK
there are many places like Qbic hotel and much more luxurious options, from which travelers
can select as per their need and budget. Number of travelling and touristic places has increased,
as there are so many accommodation options in the country. This clearly shows the
interrelationship between the two sectors (Barrows, Powers and Reynolds, 2012). One of the
leading source of income in terms of inbound tourism during 2014 was USA followed by
Germany and France. Revenue generated from these countries was £2548 million, £1408 million
and £1350 million respectively (UK Tourism Statistics, 2015). This means, amount of travel and
tourism from other countries was high in number, as nearly 13% of all tourists in UK in 2014
visited the nation for leisure purposes (UK Tourism Statistics, 2015). Average length of stay per
tourist was 7.5 days in the same year. These people would not have been able to spend even a
day in the country properly, if there were no hospitality (accommodation and dining) options
available to them. In this regard, the UK government has allocated a major portion of budget
towards the hospitality industry. £14.1 billion for improving and maintaining accommodation
services, £31.1 billion for food and beverage services, and £18.6 billion for air passenger
services (UK Tourism Statistics, 2015).
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Figure 1: Inbound Tourism
(Source: UK Tourism Statistics, 2015)
Figure 2: Visitor Number and Total Spend by Sector
(Source: UK Tourism Statistics, 2015)
Process of travelling from one place to another within UK has become a lot simpler due
to improvement in performance of travel and tourism and hospitality sectors. More options are
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available to travelers to rest at. This way they are able to enjoy their holiday. Tourists nowadays
make more informed decisions with help of internet. Accommodation is one of the most
important parts of travel and tourism industry (Ayuso, 2007). Within UK there are a number of
staying options. For instance, travelers can select from bed and breakfasts, to homestays, to
hotels (ranging from 1-5 star categories). Such wide availability of options has made stay more
enjoyable for the travelers. Food and beverage is another very important aspect of the hospitality
industry. There are a large number of dining options within the country. These handle the load of
people travelling within the country as well as from other nations. In recent years, number of
restaurants in UK has grown exponentially (Scott and Orlikowski, 2012). This is mainly because
of surge in travel and tourism in the country. Therefore it may not be wrong to say that one of the
main reasons behind success of travel business is the hospitality industry. The menu, ambience,
prices, etc. all very critical factors in determining what kind of restaurant travelers select. In the
UK there are numerous restaurants catering different requirements. They range from affordable
take-outs to high class fine dining restaurants. It has been observed on numerous occasions that
they form an integral part of a tourist’s holiday. Many people, if they like the restaurant, go it
again and again during their entire stay; while there are some tourists who try different restaurant
and other such eating joints (Jaafar, 2011).
The hospitality industry works at various levels to support travel and tourism business. It
can be supported through fact that the hospitality sector provides different kinds of services and
activities that people can enjoy while they are travelling. According to many experts on the
subject matter, exceptional performance of hospitality industry is one of the main reasons behind
rise in travel and tourism trade in the UK. Number of visitor attractions, theme parks, etc. has
increased in the country (Brotherton and Wood, 2008). This is a testament to importance of
hospitality sector to travel and tourism business. But on the other hand, there are many authors
who argue that hospitality industry is dependent on travel and tourism sector. In this regard they
have opined that if travel business had not experienced acceptance from people in the early 1700
and 1800s, then current hospitality industry would not have taken shape. On basis of the above
analysis it can be said that both travel and tourism and hospitality industry are heavily dependent
on each other. Their inter-relationship is very strong and of crucial importance to overall
development of the leisure sector (Chon and Yu, 2009).
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TASK 2
LO 2.1 Implications of integration to the hospitality industry
Integration in the hospitality industry happens in two forms – Vertical and Horizontal. It
can be defined as a process wherein two or companies join forces to develop a large organization
so that they can cater to market demands in a much better, efficient and effective manner. Main
purpose of integration is to reach economies of scale, so that operational costs can be reduced.
Vertical integration is a process where a company buys another firm in the same distribution
channel (Pulina, Detotto and Paba, 2010). In such cases, either a firm is bought, or the concerned
organizations merge into one another. The companies here try to maximize their profitability and
lower their operational costs. On the other hand, horizontal integration is useful for companies
that want to increase their customer base. It occurs when a company purchases or merges with a
company at the same stage of the distribution chain. It is more of complementary in nature rather
than being competitive, because through this integration associated companies strive to achieve
economies of scale and thus maximize their profitability (Cook, Hsu and Marqua, 2013).
Integration of different functions and aspects in the hospitality industry has affected this sector in
various ways. The following paragraphs discuss implications of integration on the hospitality
sector.
One of the areas that integration has affected is branding. In hospitality sector branding is
the key to success. Companies have succeeded in this marketplace primarily because they have
paid a lot of attention towards branding and other such activities. Through this process these
organizations have delivered their messages to target market(s). Importance of branding can be
explained by stating that clients and guests want to associate with corporations which have a
superior brand image (Dwyer and et. al, 2009). Brands often aim to make their loyal customers
see their products or services as an extension of their personality or character. Hotels and other
hospitality organizations have been successful in enhancing their brand image in the market
because of integration. It has been observed that large hospitality organizations acquire other
firms who have been able to develop a strong brand presence in the market.
Nowadays organizations from the travel and tourism trade are also integrating their
business functions with the hospitality industry in order to increase their reach to customers,
enhance global presence and eventually profitability (Barron, 2008). In UK, many major tour
operators have purchased hotels in different parts of the country as well as overseas. But
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integration between larger organizations has proved to detrimental to smaller organizations. Due
to this reason numerous independent organizations in the UK have joined forces to compete with
the bigger organizations and to sustain in the market. In this sense it may not be wrong to say
that ‘integration’ holds significant importance for the hospitality industry. There are a larger
number of aspects which have made integration even more important for this sector. One of them
is rise of the internet (Cox, 2009). It has put numerous travel agents and hospitality organizations
out of business. Smaller hospitality organizations, after integrating their operations are paying
more attention to making their functions internet friendly. Their online presence is increasing at a
rapid rate. This way they are able to reach to more customers and inform them about their hotels
and other such services and also enable them to compare the same with that of larger
organizations.
LO 2.2 How integration has affected Qbic hotel
Integration has become one of the most important aspects of the hospitality industry. But
usually it happens only between the larger organizations, which makes it very hard for smaller
organizations to sustain in the market (Hospitality and Tourism, 2015). Integration has affected
small firms such as Qbic hotel in significant ways. It is one of the leading small hospitality firm
in the UK. Integration has influenced the organization in several ways. Following paragraphs
explain the impact of integration on Qbic hotel.
One of the main purposes of integration is to help companies to achieve economies of
scale. But since Qbic has not been acquired by any other firm in the sector, it has not been
successful in achieving economies of scale, due to which its profitability is not very high. Now
board at the hotel is looking at different options for integration (Enz, 2010). Recently Qbic hotel
has received offers to join portfolios from leading organizations in both travel and tourism and
hospitality industry. Therefore it can be said that integration has gained significant popularity in
the leisure sector, forcing every organization related to the sector to join forces with one another
in order to be able function effectively in the market and also to sustain. This means Qbic hotels
have only two options, either to improve its performance somehow or integrate their operations
with some other, bigger organization (Kotler, Bowen and Makens, 2010).
Another way to analyse the impact of integration in Qbic hotel is by assessing
competition in market. There are various experts on the subject matter who opine that since
integration has become a very common phenomenon in hospitality industry, competition levels
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have certainly reduced. Due to this operating in this market is supposedly an even simpler task.
But on the other hand there are many experts who state competition has not reduced, rather it has
only increased (Walker, 2012). It can be supported through fact that earlier companies like Qbic
were competing with both small and bigger firms in the industry, but now since smaller
organizations are being acquired by their larger counterparts, these companies have to compete
with bigger enterprises. These bigger organizations like Hilton hotels, or other firms operating
under brand name of Starwood Hotels and Resorts can easily perform and manage their functions
because they have large budgets and easy access to monetary resources (Baum, 2007). But on the
other hand Qbic and other such hotels have to manage their operations in short budgets and do
not have the luxury of large financial resources. Standardisation is also another aspect through
which impact of integration on Qbic can be viewed. Bigger hotel and hospitality chains have
developed their own standards and can easily abide by them, but this becomes a lot harder for the
smaller organizations.
TASK 3
LO 3.1 Rationale for a selected project
Considering present situation of travel and tourism in the country, it would be best for
Qbic hotel to open a restaurant that serves to not only its guests, but also any other individual in
the city of London.
Since Qbic hotel in London is located at a very prime location, it would be very easy for
people to reach there and enjoy their time while having delicious food (Darcy and Dickson,
2009). So in short the idea here is to open a restaurant that serves general public as well as
hotel’s guests. This new restaurant can perform very well, largely because of the fact that it is
situated right opposite Altab Ali Park in London City, meaning that it is easily accessible for
people, thus helpful in increasing number of customers that it could serve in a day. The
restaurant would have both indoor and outdoor sitting area, meaning that guests will have to
option to dine in privacy or enjoy the nature and feel the urban landscape of nearby areas.
Market research is a critical component while developing a new business development
project (Henderson, 2007). It provides plenty of useful and necessary information to related
people, making decision making process a lot simpler for them. Due to this reason it may not be
wrong to say that market research must be carried out with utmost care, as any mistake can turn
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out to be fatal for the organization in long run. With regard to opening a new restaurant for Qbic
hotel, the market research process would consist of stages like asking people to fill out a
questionnaire as well as conducting personal interviews of some of them. In addition, an
estimation of demand of the services that Qbic would offer can be determined by undertaking
market research process. To conduct this research 1000 people including both tourists as well
locals would be asked to fill the questionnaire; while 100 of them would be interviewed. This
means data from 900 questionnaires and 100 interviews would be used in the market research
process.
Determining the market or group of individuals that the business would serve is
important. Role of segmentation is important in this regard (Dewhurst, Dewhurst and Livesey,
2007). There are various criteria for market segmentation. It includes the likes of geographic,
demographic, behavioural, and psychographic segmentation. Regarding the current business
development project, behavioural segmentation would be most effective. Use of this criteria can
be effective in terms that there are numerous restaurants in London City meaning that the people
have plenty of choices to make decision from. The restaurant would be set right next to the Qbic
hotel building at Adler Street, opposite the Altab Ali Park. Size of the business would be to serve
100 customers per week.
Investment that the hotel will require to establish and maintain the business would be
taken as partial loan from banks and partial from its own savings and past revenues. The total
amount that hotel would require is £250,000. 75%, i.e. £187,500 would be taken in form of loan
while the remaining amount will be used from hotel’s savings. The menu that would be used in
the hotel will consist of breakfast, lunch, drinks, desserts and a special menu for children.
Therefore it can be said that the hotel would be serving a wide variety of food items to its
customers to people from all walks of life, i.e. ages. This way it can expand its reach to
customers and satisfy people from all generations (Schmallegger and Carson, 2008). In order to
function effectively and as per standards set by the government, hotel would apply for license.
One of the main licenses in this regard would be the Food Business Registration. It has to be
acquired by organizations that intend to sell, cook, store, prepare and distribution food in the UK.
In addition to it, the hotel will also have to apply for Food Premises Approval, to register the
place it would prepare and serve food to customers. License regarding food safety is another
crucial license.
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LO 3.2 Plan for the hospitality business including operational requirements
In order to function effectively, designing of the restaurant would be critical importance.
(Bonn and Harrington, 2008) The hotel management will have to pay attention to aspects such as
ambience, brand, interior and exterior set-up of restaurant, sustainability, etc. Ambience would
be critical for the restaurant, because it will play a major role in attracting the customers. Herein
attention would be paid to ensuring that the ambience suits to people from all ages, so that they
can be satisfied. In this regard, behaviour of staff members, decoration and lighting with the
restaurant. It would have to be such that the customers feel happy and comfortable. Since the
restaurant will serve to children as well, a special area will need to be developed where they can
play. These aspects are very important from view point of creating the perfect interior of the
restaurant. Similarly, exterior of the eating place, where some tables would be set for the
customers, will have to be such that people can walk easily through it. This will facilitate
movement of staff and improve their efficiency, thus satisfying the customers much more easily
(Lu and Adler, 2009). In order to sustain in this market, the hotel management and restaurant
authorities would have to price food items as competitively as possible. This way the project can
work effectively and also sustain in the market for a longer period of time. Furthermore, using
such a price policy would enable the authorities to ensure that customers do not feel they are
being charged more than prices prevailing in the market. On this basis it can be said that while
developing the project for the new restaurant, process of designing and interior must be
undertaken very carefully. These would have a major role to play in attracting and retaining the
customers, as well as in delivering high quality services (Barros, Butler and Correia, 2010).
Since the restaurant would be targeting middle class people, it can be said that the interior
design would not have to be luxurious, but rather it will have to be comfortable. The hotel, thus
can provide great service(s) along with food items and satisfy the customers, that essentially
would help it in sustaining in the market. Currently, number of people belonging to middle and
upper middle class is very high, therefore it becomes all the more important to target and deliver
high quality services to them (Hjalager, 2010). Customer loyalty can be increased substantially
by carrying out this task. Similarly, training and development of the employees would be critical
in this regard. The management would have to ensure that staff members treat the customers with
respect and in a polite manner, so that they feel happy and welcomed in the restaurant. Quality
management would be of critical importance to the management, as it will have a significant
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impact over satisfaction level of the customers. If food and services are of high standards, then
the customer(s) will visit the restaurant again. This means repeat customers can be ensured just
by paying attention to quality. Regular training, development and workshops will be crucial
(Law, Qi and Buhalis, 2010). If they are organized frequently, then it can be ensured that
employees will perform to the best of their abilities; and thus they would be provide better
services and satisfy the customers.
Another very important part of the designing the hospitality project is to determine the
operations. Herein ‘manpower’ would be critical. Restaurant management will have to decide
how many employees are required for each department such as kitchen, front area, serving, etc.
Once the number of people necessary for the departments is determined, next step would be to
identify different positions and qualifications necessary to fill the position (Chambers, 2009).
This way applications can be filtered, saving a lot of time and other such resources for restaurant.
After the restaurant would start functioning, the authorities would have to tackle many more
different issues, like staffing issues during various seasons. This means preparations would have
to made beforehand to ensure there is no shortage of staff during the peak season. Smooth
functioning of the restaurant can be ensured this way (Getz, 2008). Hiring more people when the
business is booming may be the correct decision, but during an off-season, this can become a
major issue for management. They would have to determine a solution for it, like hiring people
on contractual basis, wherein they will be employed by Qbic during peak season, but during off
season they will not be associated with the restaurant. This way staff turnover can be reduced
and management would not have to lay-off the employees. A positive and healthy working
environment can be created this way (Schmallegger and Carson, 2008).
In terms of organizational structure and hierarchical levels, every department would have
a department head, who then would report to the restaurant manager. Employees, as per their
functional area will follow instructions given by the department had. On the other hand,
restaurant manager will be responsible for managing the whole project and ensure customers are
satisfied and that the organization is earning profits. This manager would report directly to
General Manager of the hotel (Ayuso, 2007). This way a proper flow of work and
communication can be developed and maintained in the enterprise. It can be very helpful in
making the customers happy and satisfied and thus loyal to the restaurant. Following image
shows organizational structure.
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Figure 3: Organizational Structure
CONCLUSION
The leisure industry is a very complicated market. Travel and tourism and hospitality
sectors are the two main parts of it. They are further divided into various sub sections. Main
purpose of this study was to understand diversity of hospitality industry and to assess it in terms
of travel and tourism trade. There are numerous examples which show that travel, tourism and
hospitality sectors are very closely related to one another. In fact there association is so strong
that they have become dependent on each other. This means one cannot function effectively
without the other. During the study various instances were presented that show inter-relationship
of the two industries. Therefore, the role of hospitality is very important for travel and tourism
industry to perform well. Further the report also assessed the impact of integration on hospitality
sector in general and particular on Qbic hotel. A project was also developed for the hotel, where
it was suggested that a new restaurant be established which would cater to hotel’s guests as well
as locals and other tourists who are not staying at the hotel.
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General
Manager
Restaurant
Manager
Kitchen
Department
Serving
Department Front Area

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