(solved) Hospitality Provision in the Travel and Tourism Sector

Hospitality Provision in the
Travel and Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Inter-relationship between Hospitality and travel and tourism sector:.............................2
TASK 2............................................................................................................................................3
2.1 The implication of integration to the hospitality industry:...............................................3
2.2 Discuss how integration has affected a hospitality business...........................................5
TASK 3............................................................................................................................................7
3.1 Rational for a new hospitality business:...........................................................................7
3.2 Producing a project proposal as per the target market, location, operating model:.........8
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
TUI group is a multinational travel and tourism company which has its headquarters in
Hanover, Germany. It is the world biggest leisure, travel and tourism company. It have its own
travel and tourism agencies, hotels, airlines, cruise ships and retail stores. The company currently
owns six European airlines which is by far the largest holiday fleet in Europe. It also have nine
tour operators who are based in Europe. The TUI group(Toristik Union International) is also
listed on Frankfurt stock exchange and the London stock exchange as a constituent of FTSE 100
Index.
The group is serving in the hospitality and tourism sector. The company was founded in
1923 (94years old). It is a global company with operational capabilities in more than 100
countries. Currently it is employing more than 76000 employee's who are placed in 1800 travel
agencies around the globe. The company have stakes in various companies such as Thomas
cook and Thomson travel group (Barros, Butler, and Correia, 2010). The Thomson group is a
United Kingdom subsidiary of TUI group. It is headquartered in Luton England. But by 2018,
the company is planning to integrate all the subsidiaries and form a single entity. The Thomson
group was primarily a Canadian travel and tourism company which was later taken over by the
TUI group. Now it is serving as a subsidiary in the market and act as a travel agency.
The TUI group have different products such as charter and scheduled passenger airlines,
package holidays, cruise lines, hotels and resorts. It currently have revenue of €17,184.6 mullion
in 2016. the operating profit of the company is €618.3 million and gross profit is €1,037.4
million as last year. It is the biggest organisation in travel and tourism industry (Brotherton,
2012). The company is on track to integrate the functions and subsidiaries which are operating in
different countries. The company is engaged in sponsoring Bundesliga club Hannover96. The
organisation has divided its functions into different parts:
 Hotels and resorts
 Cruises
 Destination Services
 Tour Operators
 Airlines
1