Unit 41 - Hospitality Business Strategy

Unit-41
Hospitality Business Strategy

Table of Contents
Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A...........................................................................................................................................3
PESTLE and SWOT analysis of the organisation and an analysis of the organisation’s
capabilities..............................................................................................................................3
Analysis of the competitive environment using Porter’s Five Forces model.........................7
PART B............................................................................................................................................8
Evaluate the different types of strategic directions available to the organisation..................8
Justify and recommend the most appropriate growth platform and strategies.....................10
Produce a strategic management plan with strategies, objectives and tactics......................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The hospitality business strategy plays the crucial role as it helps the hospitality
businesses to make more revenue by enhancing the booking capacity. The different business
strategy must get used by businesses in terms of different tactics by which the systematic profit
will get gained by which more competitive profit will obtained from the competitive
marketplace. Business strategies will get used by the hospitality service provider by which the
continuous success and better development will get induced with more perfection and to achieve
that effectual set of strategy will get induced (Altin, 2018). It will helps to make the appropriate
improvisation in the services that get directly associated with sales and profit. This report is
based on the TUI that is the world’s largest tourism business and have a larger family and having
70,000 colleague all across 180 worldwide destinations. It is the multinational travel and tourism
company that was founded in 1923 and have serve different products as like schedule and
charted passenger airlines, cruise line, hotels and resort and the package holiday as well. This
report includes impact and influence of macro environment, internal environment and
capabilities, porter’s five force model and different methods, concept and theory to devise
strategic planning.
MAIN BODY
PART A
PESTLE and SWOT analysis of the organisation and an analysis of the organisation’s
capabilities
PESTLE Analysis: It is an external analysis that has the direct impact on the productivity
and performance of TUI and as explained below as:
Political: The UK has more stability in terms of political aspect and in this travel and
tourism will make the better contribution within tax policy in terms of sales, profit, income, tax
revenue and in this TUI and other hospitality businesses ensure that UK adopt the better strategy.
TUI has made the acquisition with divest business thus they will be in profit while protecting the
easy accessibility of a capital market (Cheah, 2018).
Economic: The tourism sector will generate the better revenue as like from restaurants,
lodging, amusements, transportations etc. and have direct impact on the economy generation of
UK. Most of the travellers take the bank loan and if it is with high interest rate then it may
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influence the behaviour of tourist. UK will spend on tourism with price sensitivity thus more
innovation will get implement by TUI.
Social: It will basically consist of the need and size of the customers thus TUI always
follows the health consciousness, age distribution and have more focus on safety as per
increment of the lifestyle and better expectancy.
Technological: In this TUI has launched the TOUROPA.COM that is the tour operator and it
will be sale out from the television, call centres or from the traveller agents as it helps the TUI to
become the leader of sales generator.
Legal: The airline of TUI they only has permission to manage the air carrier if that get
majorly owned as it will get operated by the European Economic Area (”EEA”). TUIs manage
the majority and operate the airline with route license as it restricts the license of granted rate
that cost more to TUI airlines.
Environmental: To manage the environment protection as from the global warming and with
this the carbon emission in some of the areas restricted the TUI airlines and that will decrease the
profit share (D’Annunzio-Green, 2018).
SWOT Analysis: It is an internal analysis which affects recital of TUI and it explains
below as:
Strength TUI has the most established distribution channel and the most well acquired by
the better players with support to this they have improvise the customer services
on continuous basis with diversifying the range of products and services.
Weaknesses TUI travel and tourism spend lesser amount on research and development but it
is a fastest growing aspect within travel sector. Thus adequate gap is developed
in between the sold and required product thus it has negative impact over the
productiveness of business.
Opportunities As the demand and need of the customer will get changes and in support TUI
have provide the wider range of services with flexibility experience while
travelling. TUI makes more acquisition in order to expand their services by
which more values will get transmitted (González-Rodríguez, 2018).
Threat The economic condition of UK is biggest challenge as it restricts the capacity
management of TUI by which the employee has the lesser job security.
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