Hospitality Industry Analysis

This assignment delves into the complexities of the hospitality industry. Students are tasked with analyzing current trends, challenges, and future opportunities within the sector. The analysis should encompass various aspects such as technology's impact, sustainability concerns, changing consumer behavior, and the evolving role of human resources. A deep understanding of these factors is crucial for success in the ever-evolving hospitality landscape.

University
Hospitality Provision in Travel and Tourism Sector
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Lecturer’s name

HOSPITALITY PROVISION IN TRAVEL & TOURISM
Contents
Introduction................................................................................................................................3
Task 1:........................................................................................................................................3
LO1: Understanding the role of hospitality industry within the travel and tourism sector........3
1.1 The interrelationship between hospitality and wider travel and tourism.........................3
Task 2:........................................................................................................................................7
LO2: understanding the impact of integration within the hospitality industry..........................7
2.1 The implications of integration to the hospitality industry..............................................7
2.2 Impact of integration on a hospitality business................................................................8
TASK 3:...................................................................................................................................10
LO3: Planning the development of hospitality businesses......................................................10
3.1 Develop a rationale for a selected project clearly justifying decisions linked to a target
market...................................................................................................................................10
3.2 Develop a plan for hospitality business including the operational requirements of the
business’ organizational structure about human resource allocation...................................13
References................................................................................................................................16
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Introduction
The hospitality sector is a rapidly growing industry along with the IT, software, retail, and
aviation sector. The development and changes are due to the changing lifestyle of people and
their habits. The service industry is generally different from the tangible good industry and
completely depends on the man to man ideology and behaviour. Product differentiation and
customization are the basic strategies of this service industry. The project sets light in the
hospitality industry and its role in the travel and tourism sector describing the
interrelationships with wider perspectives.
Task 1:
LO1: Understanding the role of hospitality industry within the travel and tourism sector
1.1 The interrelationship between hospitality and wider travel and tourism
The hospitality sector is the service oriented section of the industry that serves people and is
generally associated with hotels, restaurants, wider food servicing, accommodation and
relaxation services. Customers and travellers mainly prefer relaxation and recreational
activities and services to enjoy for rejuvenating from their daily busy life. These services
include spas, gyms, salons, sports club, swimming clubs, recreational and arts clubs. Offering
quality services to satisfy the customer needs are the main objective of these service sectors
(Barrows, 2011). Tourism is associated with the travel and motion of customers from one
place to another and thus, involves to introduction and communication with new people every
now and then both for the travellers and the service providers. The traveling purpose varies
from groups to the motive of the people traveling. Some may go for business trips, holiday
vacations or recreational needs. However, traveling and tourism is oriented for a limited
period and a short span of time. The business that is linked with servicing is railways,
airlines, travel agents, rentals, and tour operators.
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Figure 1: The interrelationship between hospitality and travel-tourism
(Source: Pizam, 2009)
Tourism and hospitality are interrelated with each other for providing services to the
customers and generate better customer satisfaction because every part of these services is
associated with customers' point of view. Both of the servicing sectors work together and
cooperate with each other by keeping in view some common goals and in order to generate
more opportunities for employability and develop the country's economic status. Around the
world, this particular travel and tourism industry provides 255 million jobs for the people and
contributes around 9% of the UK's GDP. The government of UK acts instrumentally in the
implementation of the policies that are associated with travel and tourism legislation whereas
the private organizations are seen to run airlines, hotels, traveller agency, tour operations and
make a potential use of the country's resources.
The analysis of the importance and integration of the hospitality and tourism travel
management is detailed by choosing two hospitality organizations that are Hilton Hotels and
Imperial London Hotels.
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Hilton Hotels and Resorts is a famous chain of hotels and resorts worldwide and have built up
their brand name over 92 years of experience. Luxurious and stylish services are provided to
the customers that recognized new approaches to innovation and also offers products and
services with innovative concepts, authentic hospitality commitment to the customers. The
hotel has expanded their range in around more than 500 locations and 80 countries. They
provide a great opportunity to the customers of customizing their required rooms according to
their needs and that must be approved before the travellers reach the hotels so that they could
not be delayed in their services. Apart from providing rooms and services, the hotel also
looks in servicing the customers with foods and beverages and other recreational facilities
like swimming pool, spas, gyms, sports courts, etc. People usually go to vacation and hotels
for spending leisure times with their families or colleagues. Therefore, the hotel provides a
great opportunities for them and prepare themselves to meet every demand of the customers
and as they want. The services are not only related to such recreational and functional sectors,
but they also provide special accommodations for business officials purpose like conference
rooms, banquets, meeting rooms and specialized technological equipment and services. The
prime motive of the business is to service the customers and meet their demands in order to
generate maximum customer satisfaction. These ensure that the customers will help them to
build up their goodwill and spread their brand name in exchange for good services. They
ensure the journey of the customers in their hotels are enjoyable and worth memorable.
The Hilton Hotels are in integration with other hospitality organizations for providing a full
array of services and help the customers to enjoy their time of vacation. The Hilton hotel
services have collaborated with the British Airways, Ryan Air and Easy Jet for offering better
and easy services to the customers. Not only this, but the hotels have also collaborated with
travel agencies like Thomas Cook and tour operators like My Travel, car rentals, TUI and
other organizations (Middleton, 2012).
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The location of the hotels is right in the centre of the cities that are generally close from the
airport. For example, the hotels are located near the Heathrow Airport and Gatwick Airport.
These strategic planning and location, so the hotel provides a great opportunity or the hotel to
enter into a healthy and collaborative association of service providing organizations.
The next is Hotel Ibis in the London city that is also a hospitality organization and located at
the heart of the city. Liverpool station is easily accessible from that location and also many
corporate buildings related to business orientations. They offer luxury facilities to their
customers that consist of 350 luxury suites, room cleaning services, modern facilities and
technological support, food and beverages, Wi-Fi facilities and functional bathrooms. They
provide a healthy environment and friendly ambiance to the customers by providing every
necessary relaxation elements like swimming pool, bar, sports court, etc. The hotel also
provides safety assurance for the customers and special multimedia access. Customers with
special health cases are provided with necessary equipment like ramps, wheelchairs, etc.
Hospitality in travel and tourism industry helps to make the business more attractive and
profitable. Thus, concluding from the above cases, it can be said that both the sectors are
incomplete without each other. Both are complementary factors that enhance the hospitality
in regards to the humanism as a whole. The hostility sector mainly ensures the safety and
comfort of the customers with clean living ambiance, hygienic food and effective leisure
activities (Middleton, 2012). The integration of the hospitality and travel-tourism service
sector provides collaborated services and focus on the customer satisfaction to ensure
maximum development and evaluation of their services. These sectors in order to achieve the
maximum out of their field allow special offers on packages that create a great promotional
strategy for rendering their services (Ritchie, 1994).
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Task 2:
LO2: understanding the impact of integration within the hospitality industry
2.1 The implications of integration to the hospitality industry
The implications of integration in the hospital industry are mentioned below:
The first and foremost importance of implication of integration in the referred industry is that
it leads to increase in economies of scale. The scale of operations increases that is generally
referred to economies of scale, and that leads to decrease of overall operational cost and
finally increasing the profit margins and overall profitability.
The package dealing concepts have become popular in recent days, and that is an outcome of
the integration processes in the hospitality and tourism industry. Packages are considered to
be beneficial both for customers and business. The business enjoys benefits from this as
controlling the service rates, attracting more customers and thus, regulating the profit chains
and margin of the business. Customers get the benefit of enjoying many services at common
points and at the high competitive price that results in the personal economic wellbeing of
them. Thus, both convenience and economy are maintained through this implication
(Middleton, 2012).
Integration is a way that helps the business infrastructures to grow on an international scale,
for example, Ibis hotel has been able to an extent their business in other countries. This extent
not only helps the company to increase its customer base but also its presence throughout the
world. Standardization is one more factor that helps the hospitality industry to increase in its
extent. Integration helps the company to provide customers equal service irrespective of the
place of the hotels. For example, the Hilton hotels maintain their same structure, design, and
ambiance that helps to maintain their brand image and overall service quality.
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Situations arise where the hospitality sector fails to maintain their integration with the other
corresponding service sectors and that ultimately leads to dissatisfaction of the customers.
Such situations arise only when the legislative and ethical policies of both the companies do
not collaborate or different from each other, and that leads to conflicts. The basic procedures
and policies are hard to maintain equally for two or more different companies. These things
carry on, and that hampers the customers as well as their satisfaction servicing level.
The market competition is also influential part as a result of integration in the hospitality
sector. The competition of the big companies and their integration can erase off the existence
of the smaller competitors because they won’t be able to cope up with the quality and
quantity of the services that the big competitors provide. Along with all these materialism and
factors, unemployment as the result of dissilience of the smaller industries and competitors.
To maintain the economic status and competitive advantage, the companies’ become bound
to terminate jobs of many employees.
2.2 Impact of integration on a hospitality business
The integration of business is said to be either horizontal or vertical creating an integrated
impact on any kind of business. The impact is either negative or positive and therefore, to
highlight the benefits, both the impacts are discussed (Ritchie, 1994).
The positive impacts of integration on the hospitality business are discussed as follows:
 Economies of Scale: It is necessary to attain the economies of scale that highlights
the positive side of the business that the organization is operating and therefore, the
integration is one such factor that helps the business in attaining economies of scale.
The company or the business to be specific attains a level where their operating costs
get reduced due to achieving economies of scale and thus, this helps the profit margin
to increase overall along with the increase in the volume of business as well as shares
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in the market. Increasing the customer base automatically leads to increase of
business volume and also to increase the number of services and versatility, and
extent contributes to increasing in the volume of business.
 Better Access: For the satisfaction of the customers, the integration of business helps
to ensure better access to the wide range of service by the similar convenience point
of contact.
 Standardization: The integration ensures standardization. Along with the increase of
scale operations and areas of integration, the organizations seeks to adopt standard
procedures for their operation to conduct. This allocations and service techniques
ensures that the customers get equal kind of services with standard quality and same
experiences in the very outlet of the business throughout the world. This technique
helps the business in offering better quality service and maintains the common
essence of their brand ensuring complete satisfaction for the customers.
The negative impact on the business are stated as below:
 Unemployment: The struggle for the big players and business entities exists due to
an integration of the businesses. The smaller business entities gradually fail to cope
up with the rising demand for the big players and the services that are provided by
them are not according to the standards of the inferior companies. Therefore, this
increases the competition amongst the business organizations. Hence, termination of
the smaller organization leads to unemployment.
 Conflicts: Differencing ideologies and integration procedures lead to conflicting
situations and that further make delays in the decision making of the associates. The
overall experience of the customers is hampered those who are in association with
the hospitality organizations due to deep impact of the conflicts.
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TASK 3:
LO3: Planning the development of hospitality businesses
3.1 Develop a rationale for a selected project clearly justifying decisions linked to a target
market.
The industry of Hospitality is the fastest growing industry in the world. When any one was
starting up the new venture that time this the most profitable business to start with. After
entering this business the company or the owner have to explore various ways and option to
venture like restaurant, hotel, pubs, clubs, etc. This task refers to the development of the
rationale for the hospitality business regarding its requirements and the activities and also
managing the human resources and also making the organizational structure.
When this kind of projects concepts is developed that time, the developer should understand
the primary elements which will help to set a hospitality project like tourist resort or the
holiday resort.
That has been given below:
 The general business concept should be developed to clear the business vision
 The demographic parameter and the socio-economic meter should understandable
by a wide marketing research to decide the target market.
 The organizer should fix the location and should decide that where they are going to
build the holiday resort
 Calculating the total capital and the funding to run the business
 The organization should decide services and the product by which the customer will
get the benefit it will be totally based on the customer demand and requirement.
 Planning the marketing strategy and requirement for the human resource for the
business.
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 The structure of the service and the price should be decided by the organization.
Plan: The primary plan of the project is to build a holiday resort in the heart of London. This
decision has been taken by the organization because London is a place where a large number
of the tourist use to visit the place for its scenic beauties in and around the London. The resort
is not only made for the people who is coming from the foreign land but also for the people
who is to stay in London and to suffer from the hectic schedule of their life can come and
spent a great weekend at that resort. The actual resorts objective is to create memorable
moments for the customer when they are staying in the resort so that they can visit next time.
Market research: When an organization is venturing into a new business that time the
organization should go for a thorough market research to understand the market and the
current position of a then business. When an organization is building up a resort that time the
organization needs, the huge amount of capital to build the resort. A deep market research is
required to understand the depth of the market, customer’s requirement for making the final
and the ultimate investment for the business. The basic marketing research can be done by
surveying more than thousand people without any gender discrimination, and online survey
where the organization can understand the plan and the online marketing policies of the
company also can communicate a huge number of people. This will help the company to
understand the budget of the people and how much money they are going to invest for the
resort.
Target market: The primary plan of the organization is to build a resort in the heart of the
London for the foreign tourist as well as the people of London. The main target, customers of
the hotels Are the newly married couple, families who will come for the vacation, the college
students who will come for the trip, the business organization who will come for the
conference and the travellers.
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Location: The location of the resort should be in the outskirt of the city where people may
feel fresh and will get a rest from the hectic schedule of their daily life. For building up the
resort, the resort needs huge space for that reason; it is not possible to build the resort inside
the city the reason is that inside the city no huge space is left to builds the resort.
Size: the resort should have at least sixty rooms which will include air conditioned machine
and the toilet should be attached with the room with all modern system and facilities Like
LED T.V, sofa, study table and double bed. Along with this sixty rooms, there should be
twenty more deluxe rooms and ten more deluxe cottages. Those twenty deluxe rooms should
have attached balcony for the better view of the natural beauty, and those ten deluxe cottages
will have two rooms along with a double bed, living area, and kitchenette with extra facilities
and modern interior for the rich feel.
Culture: Royal Resort is the name of the resort. The flavour of the resort is to give a royal
feel to the customer by giving them super and luxuries services. The resort has to take care
for the cleanliness for the good service to the customer and the staff should be qualified and
should get proper training to handle out any situation.
Product and the service: The service which the resort will provide should be proper to the
customer. The room should be luxuries and should be very much clean with air conditioned
service, Wi-Fi, LED television, etc. the laundry facility should be available inside the resort
for the visitors, and 24 hours room service should be available. The management’s staff of
the hotel should arrange entertainment activities inside the resort to entertain the visitors. The
resort should have a swimming pool for relaxing and rejuvenation for the adult along with
spa centre, an in-house bar, and gym.
Investments: The funding of the resort comes from the partners, owners and some extent
from the bank loan.
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Marketing: the resort should go for the online marketing with the help of social media. It
will be easier for the company to get more customer online alongside with the television,
newspaper and the magazines. The customer should get the option to choose the package as
per as the budget they had allotted for the trip. Those packages are the special packages for
the customer as per there preference.
3.2 Develop a plan for hospitality business including the operational requirements of the
business’ organizational structure about human resource allocation.
It is a very challenging work for handling and managing the resorts operation. The way of the
operation should be managed in a proper way so that the organization should make profit
fro0m the resort and the customer should also get the satisfaction of staying there. The main
important part of the business is to look after the .complete customer satisfaction because it is
a part of hospitality industry service along with that the employees should be satisfied with
their work. The service industry looks their employers as the assets of the company because
there is the only person who is going provide the direct service to the customer. B2C relation
depends upon the employer and the customer because they are the direct representative of the
customer. But then also the company looks after the better and educated staffs for the
recruitment to raise the standard of the resort. The staffs should have a good personality and
communication skills to communicate and to carry themselves in front of the visitors along
this the resort should look after to its organizational structure to develop the business. This
thing helps the organization to work as per as their responsibility for better results and
responsibility.
The structure of the organization of a resort should be defined as:
The general manager should have a good communication with all the parts of the
departmental heads, and the manager should coordinate with all the departments. This helps
the organization to reach the objectives and the goals easily. The manager should look that
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the resort is going through profit by providing quality service and the product to the customer
without compromising the quality of the service.
The resort should have a front office where a reception, bell and security service is available.
The staffs should welcome the guests, looking after the information and the mail of the
visitors and the visitor's luggage should be delivered to their respective rooms. If it is
required therefore should give extended service to the customer such as booking there ticket
and giving information about the local area. The food and the beverages should available
24x7 in the resort premises. Food is the most important part of the business because it is the
basic and most important for the human. The quality of the food should be good so that the
customer can stay fit and it should taste good so the customer can enjoy the food. The resort
should have good chefs for their cooking department to provide good quality food.
The resort should have good housekeeping service for that they need a good housekeeping
manager will be responsible for the cleanliness of the resort. The housekeeper manager looks
after the room cleaning on a regular basis and checks the room service, and the delivery of
the foods and the need so the customer.
Engineering the most important part of the project because the resorts structure should be
maintained properly or some part of the resorts should reinstall if it is damaged. This includes
the furniture and the electricity also. Electricity is the most important part of the resort
because each everything runs through the electricity so the guests may face the problem when
the electricity is not there. The accounting or the finance manager looks after the finance
books to look the cost and the records of the resorts transaction. He looks after the profit and
the economic structure of the hotel because all depends on the finance manager to look after
the records and the details of the resorts. The manager also looks after the needs and the
products which the resorts is needed to provide good service to the visitors.
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The marketing manager takes care the marketing of the resort. The marketing manager has to
build, innovative idea for the promotion of the resort. A good manager will always go for the
online promotion because in online promotion the company can reach to the lot of people via
social media because now a day’s social media is one of the crucial places for promotion.
Social media connects huge mass of all age, so it is the fastest process of promotion. Along
with this, the manager should look to the local newspaper, television and the magazine to
promote the resort. On the other hand, the manager should look after the innovative styles or
the modern methods of promotion. The manager should create new packages or the low
budget package to attract the customer of all categories’ this will help the resort to spread
their business. The manger can tie up themselves with other organization for the promotion.
The manager who is looking after the human resource department. He looks after the staff
and there recruitment. He looks after the problems and the demand of the staffs. The manager
tries to solve the problem among the staffs and keep them focused on their work. During the
time of recruitment, the manager looks for the staffs with proper body language and
communication because if this two thing comes in a proper way, then it will be easier for the
company to run their business. The manager looks for the proper training of the staffs
because if they get proper training, then they can perform their job in a smooth manner. The
main part of the training is the communication process if the communication is good then any
customer will be convinced by the communication. Without the communication, none of the
business can run.
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