Hospitality Provision in Travel and Tourism Sector: An Analysis

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This report comprehensively examines the hospitality provision within the travel and tourism sector, focusing on the interrelationships between the two industries. It analyzes the concepts of hospitality on a global scale, the structure of the international hospitality industry, and the main service providers. The report then delves into the implications of integration within the hospitality industry, using Marriott International as a case study to discuss the effects of such strategies. Furthermore, it explores the development of a business plan for a rooftop restaurant in London, including operational requirements and target market justification. The report covers various aspects of the hospitality sector, from hotel classifications and food and beverage services to conference and passenger transport services, providing a detailed overview of the industry's dynamics and strategic considerations. The report also discusses the integration strategies, particularly vertical integration, and its impact on the industry, including the acquisition of Starwood by Marriott. Finally, the report provides a detailed business plan with operational requirements for a rooftop restaurant in London.
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HOSPITALITY PROVISION IN
TRAVEL AND TOURISM
SECTOR
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P 1.1. Explanation of interrelationship between hospitality and winder travel industry............3
Concepts of hospitality on global level.......................................................................................3
Structure of international hospitality industry.............................................................................4
Main primary hospitality services provider................................................................................4
Classification of hotel.................................................................................................................4
Foods and beverages...................................................................................................................5
Hospitality within travel and tourism..........................................................................................5
Hospitality services in conferences and passenger transport services........................................5
TASK 2............................................................................................................................................5
P 2.1 Analyse the implications of integration to the hospitality industry...................................5
P 2.2 Discuss how integration has affected a hospitality............................................................8
TASK 3..........................................................................................................................................10
P 3.1 Develop a rational for a selected project clearly justifying decisions linked to target
market........................................................................................................................................10
P 3.2. Develop a plan for a hospitality business which involves the operational requirements
of the business...........................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
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INTRODUCTION
Hospitality business is one of the most essential sector in UK which is growing rapidly in
market. It could be said that, there are wide range of interrelationship are incurred in hospitality
and travel and tourism sector business in the UK, because of both business can not function their
business functionality on absence of each one in market. In addition to this, in this report,
Marriot international hotel company has been taken. It has been seen that, implication of
integration is most necessary part for the company in order to sustain in the industry. Beside
from it, the report will be discussed about how integration strategy has affected a hospitality
business in UK. Apart from it, the assignment will also be discussed about business planning and
essential requirements for Rofftop restaurant in London city.
TASK 1
P 1.1. Explanation of interrelationship between hospitality and winder travel industry
Interrelationship between hospitality and
winder travel industry
The hospitality industry will be deeply
dependent on the wide range of business
operations that will help cited business firm to
gain a better sustainability and have a good
control over the different business operations
that will help in the better rise in operational
capacity of firm. The travel and tourism firm
will collaborate with the hospitality firm that
will help in the better handling of the business
operations to cater the needs demands of their
customers. Besides this, it will help the firm to
have a good control over the business
operations followed by hospitality firm
(Vanhove, 2017). Marriott group will look
after the effective collaboration with various
travel and tourism firms like Cox and kings,
Thomas Cook etc to have a better productivity
Concepts of hospitality on global level
The hospitality industry has wide variety of
operations that are been taken in wide
consideration by an organisation like Marriott
Group. It will undertake various measures
which will help in better growth of
organisation. Besides this, it will also support
tour and travel firm to provide the better
information to hospitality firm so that the firm
can develop a better services and
accommodation, as per their needs and
demands for the customers (Swanson and
Edgell Sr, 2013). It will also help cited
organisation in meeting requirements of
customers or tourists on global level in a better
way. Apart from this, the global exposure will
help the firm to have a better handling of
business operations that will help in adoption.0
of good quality of innovative services and
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and gain the good control over the operations
in hospitality sector. Besides this, it will also
help in meeting the needs and demands of their
supporters like travel agents, drivers or other
workers in shipping and aviation industry.
It will involve the better tourist help service
that will involve business traveling, aviation
services, conference and exhibition, tourist
accommodation services and passenger
transport.
Main primary hospitality services provider.
The major hospitality services providers are
the firms like Hilton Group, Marriott group,
Radisson group etc. that are the top-notch hotel
firms on global level. These are the market
leaders and provide the best quality of product
and services that will lay a very deep and
significant impact on the customer satisfaction
level (Page, 2014). Besides this, the
organisations like cited firm set the quality
standards in hospitality industry.
Classification of hotel
The hospitality organisations and firms
are been classified on the basis of the star
rating criteria that is been followed all around
the world to determine the standards and
quality of hospitality services. The one star
rating is the lowest of all while the five star
rating indicates the highest level of products
and services that are been provided by cited
business firm. The one star will indicate low
products, to cater the needs and demands of
their customers in a better way. This will also
help the firm to increase the satisfaction level
of respective customers in much effective
manner.
Structure of international hospitality
industry
The hotel industry is now one of the most well
structured and well functioning organisation
sector (Sigala, Christou and Gretzel, eds.,
2012). The basic frame work of a hospitality
sector firm is Front Desk or reception, room
and accommodation services, food and
beverages and additional facilities that are been
offered by a hospitality firm, depending on the
type and requirement of the customer. Besides
this, the hospitality firms fall in following
categories:
Commercial or service sector: This
will involve the worms that are
operational to gain the better
commercial resources and provide good
quality services.
Profit based and budget constrained:
They have a good budget for
operational planning and work to gain a
good productivity.
Customer oriented: They cater the
specific group of customers and will
provide the product and services as per
their specific needs.
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level of products and services that will be
offered by organisation to handle the
requirements of users in a better way. On the
other hand, the five star rated hotels and
hospitality firms will give out superior quality
of services including the better accommodation
facilities for their clients or customers, good
food and beverages to eat and other additional
services provided by firm like theme park, bar
and restaurant and travelling to local
destination facility. It will help in improving
the satisfaction level of the user in a better
way. The 3 star hotels and restaurants will
consist of high level of quality on a reasonable
cost. This will help in high budgeting of bed,
breakfast, fast food cafes, mainstream products
and fine dining that I been followed by the
organisation.
Hospitality within travel and tourism
The hospitality industry firm will look
after the different measures that will help in
handling of the wide variety of operation. The
management of the hotel or hospitality firm
will look after it to maintain their quality
standards in market. The hospitality sector
plays a very crucial and significant role in the
executing of the different functions that will
help the firm to meet the needs and demands of
the users of travel and tourism industry in a
better way. Other than this, it will provide the
hospitality firm with an opportunity to adopt
Foods and beverages
The food and beverage services plays a
very important part in execution of operations
related to hospitality industry. The hospitality
firm will collaborate with different famous
food and beverage outlets and firms that will
help in better management of requirements of
customers. This will help the firm to meet the
needs and demands of the user and help them
to improve their revenue generation and
profitability (Morrison, 2013). A good food
and beverage services act as the quality
landmark and brand entity for the hospitality
firm. It involves the nightclubs, contract food
services and the people who provide the food
services and in house catering services. This
will help in better providing of have a good
pubs and bar service that are been taken in
consideration by the hospitality firm.
Hospitality services in conferences and
passenger transport services.
Different services are been taken in
consideration by business firm that will help
the hospitality firm to have a better handling of
the different business operations that will help
in the effective handling of a wider fulfilment
of the needs and demands of clients or
customers. Different sort of services like
transportation to local destinations, aviation
and shipping facility etc (Morgan, Lugosi and
Ritchie, eds., 2010). Besides this, the cited firm
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and acquire various practices and measures to
meet the demands of the users or customers in
a better way. It will involve the better tourist
help service that will involve tourist
accommodation services and passenger
transport.
can also offer the functions like conference
room, banquet hall and other event related
services to gain a better satisfaction level.
Other than this it involves the better theme
park, visitor attractions, conferences and
exhibitions. This help in improvement of
hospitality and travel and tourism services.
TASK 2
P 2.1 Analyse the implications of integration to the hospitality industry
Integration is not straightforward in hospitality industry because it is the services'
industry and to integration with ant organisation in service industry instead of a manufacturing
organisation is very different. It is necessary to Marriot international hotel require to utilisation
of different strategies for integration with other top brands in hospitality industry at international
level. Its research professionals require using of wide range of industry research in order to
figure out implication of integration of the firm in industry. For regarding this, it demands lots of
money I case of completion of integration with other brands. It is most necessary part for the
firm in order to sustain in competitive market (Mok, Sparks and Kadampully, 2013). In addition
to this, There is necessary for tow kinds of integration system in hospitality in industry in case of
merging company with other top brands in hotel industry. The needs of integration for Marriot
international organisation group mostly require for making good relationship with other
companies and also improve their performance in the industry as well. In case of merging and
acquisition of two big brands in market, then it will give negative impact on smaller
organisations in same sector. Because, of integration of two businesses in market will generate
difficulties to small hospitality firms in order to running their business functions in possible
manner. Because of integration, many smaller organisations leaving the industry in case of not
getting proper response from market, therefore, result on it, numbers of peoples remains
unemployed in the nation (Minazzi, 2015). It could be said that, integration can lead conflict
circumstances in their business environment in sufficient way because of several times, it has
been seen that, both organisations has different-different vision and mission which could lead
conflict the situation between them.
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There are mostly two types of integration incurred which is as following:
Vertical integration: When an organisation acquire another organisation in same industry
to completion of their various business functioning in industry, this is called vertical integration.
In this case, vertical integration can assist an organisation to acquire another company in same
field in order to supplying and distributing their various business products and services in proper
way. This could classify the operational responsibility between both business so it would become
case of raise profitability of firms. In case of Marriot international hotel group, it has takeover of
Starwood hotel & resort which valued at 12,2 billion US$, is the largest transaction of its kinds
in the hotel industry since 2007 (.Medlik, 2012). It was a vertical integration between both
brands in same sector, which has made negative impact on sustainability of smaller hotel firms in
the country. In addition to this, it could be said that, with the assistance of acquisition strategy,
both hotel brand has been reached to their economic of scale at the top of its agenda, and focused
training people internally rather than employing outsiders. This gives also huge benefits for both
organisation, because of both firm's professionals could share their experiences and expertise in
hotel industry to development of more accommodation services to their customers in industry.
Some conflict situations also occurred after merging both brands, because of, both have
different-different types of vision and mission which might generate conflict situations between
both of them.
Horizontal integration: This is another approach of integration of brand in market. When
two different kinds of organisation from different sector come together and create a new bigger
brand in the market then it is called horizontal integration. For example: The bigger acquisition
between Hilton hotels corporation to Blackstone investments funds. The acquisition brings
together a leading global hospitality company with blackstone's extensive portfolio of hotels and
resorts. Both brands are concerned from different-different sector such as, the Blackstone group
is American international private equity which provides financial services. Hilton hotel, which is
a bigger brand in hotel industry (McIntosh, Lynch and Sweeney, 2011). Both are belongs from
different sector and now they have formed big brand. This could lead to share their expertise in
their own sector and increase tgeh customer base in industry. In addition to this, it could also
maintain the economy of scale and finally raise the profitability of the business in market. It is
difficult to manage their new business because they associated to inverse sectors.
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Principles of ownership: This is necessary part for each organisation in the industry. It
could be said that, the principles of ownership includes identifying that all things ultimately
concerned about to principles of the business. Company must identify that who owns their
beneficial ownership and generate information must be adequate.
Principles of ownership defines that, the company owner must make beneficial decision
towards its various functionality in firm so they will be able to complete their business activities.
Many senior executives recognise that, what is being happening with their subordinate
executives at workplace, so they could build a team work together in the firm in respect to
improving performance of the business in possible manner (McCabe, Minnaert and Diekmann,
eds., 2011).
Leadership and management of the business can lead to creating positive culture of
commitment and performance formulate the plans in respect to managing their various business
practices in industry.
The business owner need to motive their employees and workforce at the workplace in
order to completion of various task in predetermined time period. Authority must realise the
actual situations of the business in performance and their workers as well in order to making
necessary improvement in them.
Branding pricing policies of the company attract its customers to give appropriate value of
money for premium products of Marriot international hotel. Particular type of each product
pricing policies can attract business customer towards the ccomapny.
P 2.2 Discuss how integration has affected a hospitality
In case of adoption of integration strategy of a hospitality organisation, there is always a
major reason behind it. This is most appropriate strategy for bigger organisation in industry,
because they could spend more money to getting advantages from integration strategy of a
specific firm. In case of Marriot international hotel, its professionals also has identified that, they
have to implementation of merging strategy to another hospitality big brand in order to gaining
profitability from the market (McCabe, 2010). A monopoly of business sector could be created
by merging tow companies in market. Apart from it, the most important benefits for the company
is that, the business will be bale to reach to stage of economies of scale with the assistance of
integration in the business. Integration between two organisations can increase effectiveness of
business functionality in market. In case of Marriot international organisation, as per information
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regarding to the organisation, it has been merged with Starwood hotels & Reseach organisation.
And its values has been estimated which is 122 billion US$, is the largest transaction of its kidns
in the hotel industry since 2007. It could be said that, both organisation has been made great
impact on hospitality industry of the nation after taking this long terms strategy.
The ration behind the fewer major organisations in the industry acquisition is that, they
have to sustain in the market with more effectiveness and also increasing profitability of
businesses as well. From the analysis, it could be said that, there are numbers of reasons can be
seen which is being major cause of occurring merger and acquisition in market. In case of
hospitality industry in nation, it has been seen that, level of competition increasing, efficiency
level of business quality raising, marketing efforts are needed to executed with more
effectiveness, resources availability is becoming big challenges in front of companies and
various taxation issues regarding various country as well (Leung, Law, Van Hoof and Buhalis,
2013). The major rational Marriot international organisation is that, they want to gain more
competitive advantage from the market, so they have to purchase majority of control of others
businesses.
Increasing capabilities: Increasing capabilities of the business is one of the major ration
of Marriot international organisation in their business functionality. With the assistance of
Starwood hotels & Reseach organisation, they can enhance the research and development
opportunities of more robust manufacturing operations of the business in industry. In addition to
this, they can use unique techniques of getting better response from market and both comapny's
expertise might lead the company to keep ahead in competitive market.
Gaining a competitive advantage or larger market share: In case of Starwood hotels &
Research organisation, they can utilise integration strategy in respect to gaining better
distribution and marketing network among various countries around the world. Which will give
more competitive benefits to the company. Effective marketing channel and distribution
systemmay lead to raising customer base of the company in industry and result on it, it will boost
up its market share frequent way (Lashley and Morrison, 2010).
Reduction of independent businesses: With the assistance of integration approach,
Marriot international hotel can share their business portion to each other in industry so result on
it, they will be able to less independent upon their business than before. However, after merging
their corporation functions to each other in the market. They could share their market share and
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operational responsibility of each other in possible manner so they might manager their business
functionality in complex hospitality market. Apart from it. With the assistance of acquisition
strategy, Marriot international hotel group will be able to diversify their various products and
services to Starwood hotels & Research organisation concerning about their current products and
services in the market. Apart from it, the business owner will be able to replacing leadership
from each other in their various business functions. The owners of the firm may wish to cash out
to invest their money in something else such as retirement. With the help of this approach, they
will be able to survive in competitive hospitality industry in the nation in effective manner.
Economy of scale: Economy of scale defines that, the reduction of per unit that arise
from increased total output of product. In this case, it could be said that, in case of Marriot
international organisation, its professionals need to maintain economy of scale of the company in
order to getting sufficient volume of profitability in the business (Law, Qi and Buhalis, 2010).
Economy of scale defines that, the company need to minimise the costing of per unit in firm by
hiring specialised labour, integrated technology in case of provision of accommodation services,
increment in production volume of the business in industry. Lower per unit cost in bulk might
impact on large volume of profitability in the business. The hotel can get its effective benefits
from raising in the level of output in the corporation. Apart from it, it assists the business
professionals in case of efficient production level, reduction in promotional cost, buy in bulk,
reduction in logistic costing and spread risks of the business in the industry in relevant form.
Control of sub sectors: There are numbers of elements are arising in controlling on sub
sectors of hospitality industry. These sub sectors such as managing lodging accommodation
services, maintain the standards of foods quality and services, furnishing arrangement of proper
travelling and tourism facilities to their customers (Kelly, 2010). All these sub sector can be
diversified between both the brands as per their appropriate proportion in this sector. Hence, it
could be said that, both hotel organisations can effectively control on its various sub sectors.
Increasing in market share: As Marriot international organisation has been decided to
merge with Starwood hotels & Research company can increase the better marketing channel in
the industry. In case of hotel industry, numbers of big brands are operating in this sector in
nation and they have large wide range of market shares. So in order to increment in market share
of collaborative organisation could lead to increment in quality of their several accommodation
facilities in industry and result on it, its market share will raise up in market.
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Standardisation and improved quality: This is also most necessary part for each
hospitality organisation in order to maintain their standardisation of their quality of hotel product
and services. It could be said that, with the assistance of both organisation's expertise in same
sector, they will be able to optimise their quality of product and services in market so it would
raise the productivity and profitability.
TASK 3
P 3.1 Develop a rational for a selected project clearly justifying decisions linked to target market
General idea: Establishment of a restaurant is same like opening other businesses. So it
in case of setting up a new restaurant, ti need to establish a general idea about to opening a
restaurant in market. In addition to this, I will give my restaurant name is Rufftop and while
establishing this restaurant, I will make general idea regarding to all activities which is needed to
be done while setting up my restaurant in London (Ip, Law, R. and Lee, 2011). In case of UK,
wide range of demand could be seen in the nation. Mostly people prefer to eating outside rather
than making food at home that's why I have chosen this sector. In addition to this, I need to
formulate an effective menu list of various foods and beverage products that I needed to be
served in my restaurant. The plan of establishing restaurant will make major ficus on the middle
class families in market who cannot afford the luxurious food and restaurant services. I need to
ensure that, provision of all food products and services would must be in good quality. This is
just the starting plan of opening Rufftop restaurant hospitality market of UK. I have to
segmentation of my customers as per their requirements from different-different age groups. So I
need to assess all these portions and proper market and industry analysis to be done my research
team in order to identify the scope of my business plan in market (Heung, Kucukusta and Song,
2011). Apart from it, I need to set up proper vision and mission of my foods restaurant by which
I could make prime focus on achieving them in predetermined time duration. Appropriate
objective to be included in the business plan in order to making efforts to accomplishing them.
Market research: Market analysis is one of the most factor for each business in order to
determine the way by which I can enter into the market. The market research could be conducted
in the market by utilising two types of techniques which is qualitative and quantitative.
Methodologies for qualitative research:
Interview
focus group
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archival research
It is very essential for execution of market research in London market, with the assistance
of this approach, I will be able to identify current market condition of foods and beverages
market. It could be said that, it provides me important values regarding to future response of my
existing customers in current market (Hall, 2013).
Stage of market research:
Set up my goals in proper way.
Select a location for the focus group
I need to prepare my question regarding to problem oriented.
Gathering demographic information
Hand out a release form
ask question
Analyse my recording and finding information.
In case of researching on quantitative research I need to use of three stages such as
experiments, polls, survey. Let's focus on survey:
Set up my goals
Gathering demographic information by asking questions
Use close ended question
Create the survey
Test my Survey
Target market: As per the target market, I need to analyse my proper customer base in
market and as per set up target, I need to produce my product and services in my Rufftop
restaurant. I need to utilise of basic segmentation criteria of my existing customers in the market.
So I need to classify my customer base as per their different age groups (Getz and Page, 2016).
In food products list, I need to add up several new and traditional food products as per likes of
children, Adult and women peoples. I need to categories my food products such as for children
breads, dessert and bakery, poultry products. In case of adult persons, i have to offer chicken and
dining foods services. It could provide me proper response form my existing customers in
London's market. It could be said that, I need to set up proper target market.
Location: Location selection is one of the vital task for me in order to gaining proper
success in my business idea. In terms of opening a new restaurant in London city, I am required
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