Tourism and Hospitality Industry Analysis

This assignment delves into the intricacies of the tourism and hospitality industry. It requires a comprehensive analysis of the industry's structure, encompassing various stakeholders such as tour operators, accommodation providers, and transportation services. Students are expected to identify key challenges and opportunities facing the sector, including sustainability concerns, technological advancements, and evolving customer preferences. The assignment also encourages critical thinking about future trends shaping the industry landscape.

HOSPITALITY PROVISION

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................1
TASK 1 UNDERSTAND THE ROLE OF HOSPITALITY INDUSTRY WITHIN TRAVEL
AND TOURISM SECTOR..................................................................................................................1
1.1 Discuss the interrelationship between hospitality and wider travel and tourism businesses.1
Task 2 Understand the impact of integration within the hospitality industry......................................3
2.1 Analyze the implications of integration to the hospitality industry.......................................3
2.2 Discuss how integration has affected a hospitality business.................................................4
Task 3 Be able to plan the development of hospitality businesses.......................................................6
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market..........................................................................................................................................6
3.2 Develop a plan for a hospitality business including the operational requirements of the
business organizational structure in relation to human resource allocation................................7
Conclusion..........................................................................................................................................10
References..........................................................................................................................................11

INTRODUCTION
Travel and tourism industry of UK has been contributing huge assistance to the overall
economy of UK because it includes different services that generate employment opportunities. In
such context, the present research study has been made on Hotel Marriott International and
Thomas Cook which are entitled in delivering travel and tourism services to their clients.
Furthermore, in the present study, researcher has also discussed integration of hospitality and
tourism industry and its impacts on services and business performance. Lastly, plan has been
made regarding operational activities of the hospitality business.
TASK 1 UNDERSTAND THE ROLE OF HOSPITALITY INDUSTRY
WITHIN TRAVEL AND TOURISM SECTOR
1.1 Discuss the interrelationship between hospitality and wider travel and tourism businesses
Hospitality industry and tourism industry both have various services that are interlinked
to each other and the main aim of both the sectors is to render appropriate tourism services to the
clients. In such respect, varied dimensions are discussed that lie under hospitality and tourism
services (Beritelli, Strobl and Peters, 201).
Composition of hospitality industry
Hospitality industry is composed of different hotels such as 1-5 star hotels, budget hotels
and bed and breakfast hotels. All the categories mentioned above have been providing different
services to the clients because they work for diverse purposes. 5 star hotels such as Marriott
International delivers prominent hospitality services to travelers as well as to business travelers.
All the operations of hotel are integrated with luxury services in which the major emphasis has
been given towards accommodation and food and beverage services (Merlo and Auh, 2009).
Subsequent hotel is entitled to deliver accommodation services, housekeeping services and food
services at the time when required by the customers. In such respect, Marriott International hotel
make sure that extra and valuable services are also included in the service package for clients.
For example- Wi-Fi services and other complementary services are also added in the service
provision for the client satisfaction (Lashley and Morrison, 2013).
Restaurants are another category of hospitality industry which basically delivers fast food
services on the basis of different cuisines (Bharwani and Butt, 2012). Restaurants usually deliver
cheaper and affordable services because they do not offer package services. Events and parties
1

can be organized at these places and the target customer segment of restaurants is usually
children and youngsters. At the same time, small coffee shops are also established in the same
industry which delivers different types of food services to the clients (McKechnie and et.al,
2008.). There are several coffee shops at UK which are based on different themes and most of
them provide luxury services to their clients. Fine dining is another category of UK hospitality
industry which renders only dining services to their customer and no other services are included
under fine dining.
Further, pubs and bars are responsible to provide beverage services to the clients and
along with that, they also emphasize on entertainment of the clients. There are several nightclubs
and food service providers that takes contract from the parties and delivers them with hospitality
services whenever required (Boo and Bernick, 2013). Catering managed in-house departments
are responsible in providing food services to the events and this also comes in the hospitality
services. These entities work on small scale level; however there services are entirely integrated
with hospitality provision. Catering service providers are also another entity that delivers food
services to the customers; but they operate business on small scale level.
Travel and tourism sector
On the contrary, travel and tourism sector includes different services such as packages for
visiting, event management services and many more (Ottenbacher, Gnoth and Jones, 2006). In
such respect, instance of Thomas Cook can be taken into account which is entitled in providing
traveling services to the clients and business customers. The entity offers wide range of holiday
packages for the clients and it also includes other services such as sightseeing, transportation
services and accommodation services. Several tour operators are working with Thomas Cook
who is entitled to persuade the clients towards tourism services; however they take commission
for the same. It has been observed that Thomas Cook has been working with different tour
operators who promote the services of Thomas Cook through varied mediums and this enhances
client base of the company (Beritelli, Strobl and Peters, 2013). The subsequent entity offers
numerous packages for holidays with varied tourist destinations; however these packages can be
customized on the basis of needs and preferences of the clients.
Social media website is the chief source through which tourism and hospitality services
are promoted among the clients. Thus, tour operators also consider the same source through
which they can grab customers for Thomas Cook (Kusluvan and et.al, 2010). Further, Thomas
2

Cook also offers conferencing services in which clients can organize their meetings and events at
specific place whenever required. Thomas Cook has integration with different hotels; thus the
holiday packages are comprised of all the services. Travel and tourism industry of UK also
includes several event management companies which are entitled to plan and organize events for
the customers. Transportation services are also included in the service provision of Thomas Cook
in which the tour operators book tickets for the clients as per their choice. Hence, from the above
discussion, it is clear that services of travel and tourism industry are also related to hospitality
industry and both emphasizes on client satisfaction (Lashley and Morrison, 2013).
Interrelationship between hospitality and travel & tourism
It is an apparent fact that hospitality services underpin travel and tourism industry
because it includes varied services such as business travel, aviation, conferences and exhibitions.
There are so many people who travel for business purposes; therefore according to their
convenience, Thomas Cook offers customized services for the clients (Beritelli, Strobl and
Peters, 2013). Being a travel agency, Thomas Cook book tickets for the customers for different
destinations and as a result, it increases the opportunities of acquiring more customers for the
same service provision. Several theme parks have been opened in UK which further includes
different services such as museums, parks, visitor attraction places and restaurants. All such
services are included inside a theme park which persuades clients to visit the place more than
once. Thomas Cook and Marriott International hotel both have complete set of service package
for tourism. Hence, on the basis of above discussion, it is evident that customer satisfaction is the
main motive of travel & tourism industry as well as the hospitality industry (Luckham, 2011).
TASK 2 UNDERSTAND THE IMPACT OF INTEGRATION WITHIN THE
HOSPITALITY INDUSTRY
2.1 Analyze the implications of integration to the hospitality industry
Hospitality industry and travel and tourism sector both are integrated with each other
because the services involved in the service provision are similar to some extent (Merlo and Auh,
2009). Thomas Cook has integration with diverse owners and entities which aids the business to
seek more opportunities for growth and success. Marriott International is also focusing on
integration of services and this is the reason, the hotel is expanding its business in different
countries. There are basically two types of integration such as horizontal and vertical integration
and both increases the opportunities of growth and prosperity for different business activities.
3

Nonetheless, horizontal integration enhances market share of the organization because such
category involves mergers and acquisitions with other ventures (Kusluvan and et.al, 2010).
Hence, in such respect, Thomas Cook is integrated with different entities and tour
operators for the purpose of promoting the services to different market places. Thus, the level of
operations is also increasing due to horizontal integration (Lashley and Morrison, 2013).
Though, horizontal integration involves several entities but the activities can be properly
managed by integrating in one single firm only. Therefore, management of Thomas Cook is the
sole entity that manages all the services; however integrated tour operators merely perform
different functions of Thomas Cook. Other category is vertical integration which is an
arrangement under which the supply chain of the organization is owned by that company
(Luckham, 2011). Marriott International hotel has been emphasizing on vertical integration for
the major purpose of retaining the stakeholders and shareholders.
Moreover, the level of integration has risen in the hospitality sector because destinations
of the developed and emerging countries are becoming more popular (McKechnie and et.al,
2008). An example of integration can specifically be seen by looking at horizontal integration in
which an airline integrated with a chain of hotels in different destinations but it also have
contracts with other airline for varied purposes. This showcases that a single entity is coming in
integration with other firms. Integrated works more effectively when two different entities of
tourism industry are integrated with each other such as Marriott International hotel is integrating
with travel agency (Thomas Cook). Implications of integration in the hospitality industry can be
seen at the time when a single firm has different entities under control and when it faces
difficulty to manage all the operations. Hence, performance of all the concerned entities get
suffered which creates more problems in service provision (Merlo and Auh, 2009). However,
integration in the same sector imposes optimistic effects on the concerned entities.
2.2 Discuss how integration has affected a hospitality business
One of the chief reasons for which business entities integrates with each other is to
improve the practices of business. Marriott International hotels as well as Thomas Cook both are
integrated with varied entities and they have seen many changes in the service provisions after
consolidating the operations with each other (Oudan, 2007). After integrating the services with
Thomas Cook, Marriott International hotel has seen increment in the demand ratio because
Thomas Cook is promoting the services of Marriott in its service packages. Accommodation
4

services under the packages of Thomas Cook are integrated with Marriott International hotel;
therefore both the entities are working for each other. On the other hand, loyal customers of
Marriott International also prefer to get packages from Thomas Cook because of these services
(Mensah and Dei Mensah, 2013).
However, apart from the positive impacts, integration between both the companies has
changed the scenario of managing businesses (Ottenbacher, Gnoth and Jones, 2006). Thus,
entities are posing greater control on each other which further reduces independence in business
management. Control of sub sectors is also increasing which leads the businesses to focus on
internal and external market environment. Apart from this, quality of services seems to be
improved because integration allows the entities to get feedback and suggestions from the
clients. After vertical integration, Marriott International hotel got many opportunities of
diversification and expansion with new ventures and this particularly brought more chances of
growth (Beritelli, Strobl and Peters, 2013). At the same time, globalization is also increasing and
Thomas Cook is developing more packages for different destinations and purposes.
Integration also augments competition at the market place; thus services of Thomas Cook
and Marriott International are getting improved continuously for increasing the client base.
Branding and marketing practices of the organizations have been improving which attracts
customers as well as other ventures to associate with the business services. Another advantage
which integration provides to both the entities is control over market (Bharwani and Butt, 2012).
By getting merged with each other, new policies and framework have been developed which are
quite competitive and which also generates opportunities to control the market. Hotel Marriott
International has been changing the operations so that competitive edge can be created at the
market place and this leads the hotel to enhance the level of organizational productivity. Hence,
it is clear that both the entities are getting numerous benefits afterwards integrating the service
provision. Economies of scale are yet another benefit which can be acquired through merging the
services with other ventures. Further, the standard of services also increases at the time when two
different entities strategically merge with each other (Boo and Bernick, 2013).
5

TASK 3 BE ABLE TO PLAN THE DEVELOPMENT OF HOSPITALITY
BUSINESSES
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market
Looking at the competitiveness of the hospitality industry it is important for the firms
dealing in it to carry out innovative activities so as to enhance the level of business functioning
of the daily basis (Nickson, 2013). Business do merge to expand their operations in order to
satisfy the expectations and needs of target market, their duties and responsibilities of also
increases. According to the present scenario, Marriott International planning to merge with
Thomas Cook will assist the course of both the business. It is because, Thomas Cook have
different types of holiday packages around the UK is beneficial for Hotel Marriott to offer better
services to greater clients. Considering the brand image of Thomas Cook in the market will help
cited hotel attract large number of customers within their packages from around the globe (Pike,
2005). Therefore, in order to serve large number of audience with the help of Thomas Cook,
Hotel Marriott has to enhance their existing business process. Further, management needs to
ensure that hotel offers quality of services to its clients to influence them for revisit. Following
are the innovative additional services that are recommended to Marriott international for
enhancing their level of business to satisfy constantly changing needs and wants of customers:
 Expansion in new areas: Top level management of Marriott are certainly focusing on
expanding business operations by opening 1300 hotels or more than six properties per
week by 2017 (Reisinger, Kandampullyand Sparks, 2001). By the means of this,
company’s total number of properties will be more than 5000. This clearly indicates that,
to maintain the competitive edge within the target market cite firm has to ensure they
offer more to its target audience and mitigate the second choice for them. Merger with
Thomas Cook will attract large number of audience to visit the hotel thus, having
adequate number of hotels in different parts of UK will play significant role in satisfying
each and every expectation (Butlerand Hinch, 2007). Further, by expanding to new
regions will enhance the reach towards customers for encouraging them or motivating
them to visit the hotel generates better revenues.
 Technology fueled changes: Technological advancement is perhaps the most
comprehensive change that has affected hospitality industry. There are several companies
constantly investing large amounts to remain up to date in terms of technology so that
6

desires of customers can be met in more innovative or creative ways (Cook and Marqua,
2014). Herein, Marriott is recommended to introduce mobile apps to help guest check in
and out of their respective rooms. Along with this, including more friendly gadgets and
enhancing Wi-Fi capabilities all around the premises will help in attracting towards hotel
again and again (Dewhurst, Dewhurstand Livesey, 2007).
 Development of Human Resources: For any hospitality firm, human resources are
considered as the most integral part. However, it is because they are the one who are
directly in contact with the customers and make efforts to satisfy their needs and wants
(Tourism Industry Structure. 2014). Marriott is an international brand and the
expectations from such entity is higher thus, it is important for the top level management
of Marriott International to regularly organize training and development for the
employees so that they can enhance their skills and abilities and provide superior quality
of services to customers or client’s. Further, after merging with Thomas Cook it is
important that cited hotel enhanced the level of workforce because expansion in different
areas without skilled and capable human resource wills leads to generate disappointing
results (Hospitality and tourism. 2015). Henceforth, management of Marriott
International has to enhance recruitment and selection criteria so as to acquire best
quality of personnel that can serve superior quality of services to its customer base.
The above defined are some of the recommendations that are provided to the senior
authority of cited hotel after merging with Thomas Cook. By bringing above stated changes will
leads to generate desired and positive outcomes for the hotel as they will be in the position to
provide best quality of services to its existing as well as new customer base.
3.2 Develop a plan for a hospitality business including the operational requirements of the
business organizational structure in relation to human resource allocation
Marriott International association with Thomas Cook requires varied improvements
within the operations of hotel in order to enhance the level business functioning (Travel and
Tourism. 2014). However, it is the duty of senior authority to plan each activity properly so that
systematic improvement can be implemented. Following is the plan required to enhance the level
of operations of Hotel Marriott:
 Concept: It is essential to develop and define the concept of modifications by the
management. However, concept consist of basic idea of the areas in which developed is
7

required (Ottenbacher, Gnothand Jones, 2006). Further, on the basis of it, objectives
should be defined such as Marriott through merger and expansion wants to enhance
market share as well as the vision of where cited hotel expects itself after successful
implementation of all the changes.
 Market research: Marketing manager has to the duty to carry out complete analysis of
market so that smart and effective decisions can be made accordingly. Further, by the
means of this feasibility of modifications or changes can be made and evaluate the
success rate of development programme (Reisinger, Kandampullyand Sparks, 2001).
External analysis model like PESTLE can be used so as to cover each and every aspects
of UK can be analysed effectively and efficiently.
 Target market: Once the market analysis is executed top level management of Marriott
Hotel can easily identify the market to target and accordingly develop suitable and
reliable strategies so that expansion can be carried out in appropriate manner (Butlerand
Hinch, 2007). Considering the class and category of people marketing tactics can be
developed for better results.
 Location: By opening new hotels in prominent places of UK will help in attracting large
number of audience. Therefore, selection of location should be done very carefully and
suitably (Cook and Marqua, 2014).
 Scale: Merging with Thomas Cook will help in increasing the scale of operations for the
Marriott as there will be increase in online booking and people from around the globe can
be interacted more effectively.
 Funding: Looking at the present financial condition of it can be said that funding for new
project would be a major concern for the hotel. Along with this, superior brand image in
market will assist in raising funds through external sources easily.
 Services: By expanding business operations with Thomas Cook, cited hotel will be able
to enhance the level of services (Dewhurst, Dewhurst and Livesey, 2007). Further,
providing more offers and discounts of services will assist in attracting large number of
audience to new hotels of the Marriott and helps in attaining competitive advantage
within the overall UK hospitality sector.
Design:
8

 Improved workplace: Opening new branches in UK will assisting in improving the
overall design of the hotel (Tourism Industry Structure. 2014). Management as per the
expectations of customer can design the hotels as well as consider the social and cultural
aspect to mould the overall design and structure of the hotel so that clients can be
offered with leisure services.
 Functional areas: Apart from physical improvement it is also important for the hotel to
improve its functioning areas so that employees in pressure also can work efficiently
and provide superior quality of services to its customers (Hospitality and tourism.
2015).
 Linking to target mass: Merging with Thomas Cook will provide platform for Marriott
as well as people from around the globe to connect with each other. Therefore, new
premises should be developed in such manner that culture and social aspects of different
nations can be touched to attract people.
 Fulfilling individual needs: However, although strategies are developed for targeting
whole mass, but management should also give importance to the individual client and
maintain long term relations to retain (Travel and Tourism. 2014). In this, management
should ensure that excellent services are offered as per the expectations of individual
client.
Operations:
 Staffing: Human resource should be managed appropriately so that they can work
smoothly in pressure and maintain the standard of services towards the customers
(Kusluvan and et.al, 2010). Further, seasonality issues needs to be resolved suitably for
better usage of workforce.
 Legislation: Operating in different parts of the world it is important for the senior
authority of Marriott International to abide all the rules and regulations so that ethical
code of practices can be encouraged and implemented towards each branch of the group
(Luckham, 2011).
 Dealing with conflicts: However, it is responsibility of leader to branch manager to
ensure that team members or other staffs is carrying out operations in the best possible
manner as well as in ethical way (McKechnieand et.al, 2008). Further, team building
9

activities should be organised at routine basis so that coordination and team spirit within
the individual can be improved.
 Promotional activities: There are several prominent promotional and marketing tools
that top level management of Marriott International can undertake in order to spread
brand image as well as create awareness amongst the people about the leisure and quality
of services and products available for them (Mensahand Dei Mensah, 2013). By the
means of social media marketing and constantly updating own blogs will helps in
connecting with customers more appropriately. Further, being a big chain of hotel,
celebrity endorsement could be another suitable option for marketing and promoting
goods and services within the target market (Booand Bernick, 2013).
CONCLUSION
In conclusion to the above report, it has been evaluated that hospitality industry is one of
the growing sectors in UK. Despite of high level of competition companies are able to attract
large number of audience and generate higher revenues for financial feasibility. Considering the
growth factor in current competitive market, merger of Marriott International with Thomas Cook
has been shown. However, through the means of this hotel is able to enhance its reach towards
customers as well as satisfy their needs and wants effectively and efficiently. Thereafter,
rationale of merger has been developed on the basis of target market through the means of which
entire improvement plan has been developed. Recommendations has been provided to the top
level management of Marriott hotel for enhancing overall functioning and satisfying the
expectations of customers in the best possible manner.
10

REFERENCES
Journals and Books
Beritelli, P., Strobl, A. and Peters, M., 2013. Interlocking directorships against community
closure: a trade-off for development in tourist destinations. Tourism Review. 68(1). pp.21 –
34.
Bharwani, S. and Butt, N., 2012. Challenges for the global hospitality industry: an HR
perspective. Worldwide Hospitality and Tourism Themes. 4(2). pp.150-162.
Boo, S. and Bernick, N. L., 2013. Festival tourism and the entertainment age:
interdisciplinarythought on an international travel phenomenon. International Journal of
Culture, Tourism and Hospitality Research. 7(2). pp.169–174.
Butler, R. and Hinch, T., 2007. Tourism and indigenous peoples: Issues and implications.
Routledge.
Cook, R. A. and Marqua, J. J., 2014. Tourism: The Business of Hospitality and Travel. Pearson
Education.
Dewhurst, H., Dewhurst, P. and Livesey, R., 2007. Tourism and hospitality SME training needs
and provision: A sub-regional analysis. Tourism and Hospitality Research. 7(2). pp. 131-
143.
Kusluvan, S. and et.al., 2010. The human dimension a review of human resources management
issues in the tourism and hospitality industry. Cornell Hospitality Quarterly. 51(2). pp.171-
214.
Lashley, C. and Morrison, A., 2013. In search of hospitality. Routledge.
Luckham, D. C., 2011. Event Processing for Business: Organizing the Real-Time Enterprise.
John Wiley & Sons.
McKechnie, S. D. and et.al., 2008. Positions and positioning: strategy simply stated. Business
StrategySeries. 9(5). pp.224 – 230.
Mensah, I. and Dei Mensah, R., 2013. Management of tourism and hospitality services. Xlibris
Corporation.
Merlo, O, and Auh, S., 2009. The Effects of Entrepreneurial Orientation, Market Orientation,
and Marketing Subunit Influence on Firm Performance. Marketing Letters. 4(4).pp. 285-
295.
Nickson, D., 2013. Human resource management for hospitality, tourism and events. Routledge.
11

Ottenbacher, M., Gnoth, J. and Jones, P., 2006. Identifying determinants of success in
development of new high-contact services: Insights from the hospitality industry.
International Journal of Service Industry Management. 17(4). pp.344-363.
Oudan, R., 2007. Market Orientation. VDM Verlag Dr. Müller.
Pike, S., 2005. Tourism destination branding complexity. Journal of Product & Brand
Management. 14(4). pp. 258-259.
Reisinger, Y., Kandampully, J. and Sparks, B., 2001. Unique characteristics of tourism,
hospitality, and leisure services. Service quality management in hospitality, tourism and
leisure, pp. 15-47.
Online
Hospitality and tourism. 2015. [Online]. Available through:
<http://www.industryqualifications.org.uk/sectors/hospitality>. [Accessed on 19th February
2016].
Tourism Industry Structure. 2014. [Online]. Available through:
<http://www.visitworthing.co.uk/tourism-industry/statistics-and-research/tourism-industry-
structure>. [Accessed on 19th February 2016].
Travel and Tourism. 2014. [Online]. Available through: < http://www.euromonitor.com/travel-
and-tourism-in-the-united-kingdom/report>. [Accessed on 19th February 2016].
12