Hospitality Provision: Role, Integration, and Business Planning

This report provides a comprehensive analysis of hospitality provision, focusing on the operations of Hong Tai within the travel and tourism industry. It delves into the role of the hospitality sector, exploring its relationship with travel and tourism and detailing various service offerings such as accommod...Read More

HOSPITALITY PROVISION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Role of hospitality industry within sector of travel and tourism industry.............................1
TASK 2............................................................................................................................................3
2.1 Implications within the hospitality sector business ..............................................................3
2.2 How integration affect to the hospitality sector of the market .............................................5
TASK 3............................................................................................................................................6
3.1 Plan for promoting product of the hotel to meet with target market ....................................6
3.2 Key components of business plan.........................................................................................6
3.3 Operational requirement within the hospitality products that includes organisational
structure, allocation of human resources, issues and staffing related requirement with
promotional activities..................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

Illustration Index
Illustration 1: Key components........................................................................................................7
Illustration 2: Operational plan......................................................................................................10

INTRODUCTION
Hospitality provision refers to several rules and regulations to provides services to
customers. It assists to ascertain roles and responsibilities towards customer to meet goals and
objectives of the organisation (Viljoen and Roberts-Lombard, 2016). Further, it also effective for
guest of hospitality business to fulfil their expectations at workplace. In this context, present
study is related to hospitality provision and Hong Tai has been taken for this. They deal in public
sector to provides several types services to their customers. With the help of major core values of
the chosen enterprise is to provide unique services to target market and enhancing satisfaction
level of customers. Furthermore, report includes implications of integration in hospitality sector
of the businesses. Moreover, it develops a plan for the hospitality industry to meet with target
market.
TASK 1
1.1 Role of hospitality industry within sector of travel and tourism industry
Every business’s focal point is to provide quality services at lower costs. In this context,
there are several ethical considerations demonstrated by Hong Tai to make good image of the
enterprise in front of customers to complete responsibilities with stakeholders. Further, they
provide excellent working conditions for motivating them to give full participation in business
unit (Sarkar, Au and Law, 2014).
In order to analysis the scope and scale of hospitality role of the travel and tourism
industry need to be explained in context of Hong Tai. In this context, the chosen organisation
offers several types of services to travellers that are related to travel and tourism industry. It
includes different kinds of services such as airlines, accommodation, event of adventures, food
facilities, etc. (Guizzardi, Guizzardi and Ranieri, 2016). In the present study, people like to spend
their holidays by visiting different places due to several reasons such as enjoying their vacation,
releasing stress, meet with friends and relatives, etc. In this context, people are also looking for
travel agents who provide them holiday packages at reasonable cost. In Hong Kong, there are
several numbers of travel and tourism enterprises providing facilities to travellers of
accommodation and food etc. (Becken and Wilson, 2013). This sector is continuously growing
through attracting people towards tourism services. Besides this, hospitality sector businesses are
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highly connected with travel and tourism organisations to make contract with hotel industry for
ascertain several types of services such as supported, accommodation, etc.
With the help of several aspects, hospitality and tourism industry has benefit, to make
commitment can be made in these industries to ensure customer get appropriate and quality
services (Fong, Law and Yap, 2016). It assists to hotel industry to cater needs of different clients.
In order to segment customer, following chart can be implemented in business unit:
Segmentation of guest Description
Group of members These types of customers have low demand of
standard room.
Individual traveller They planed for tour and they are budget
passengers
Corporate clients They have high demand in term of
accommodation.
Online passengers They stay at destination only for few days and
booking facility on website.
Walk in They have no specific requirement
MICE They possess high demand for standard
accommodation, food, hotels and many other
facilities (Airey, Dredge and Gross, 2015).
On the other hand, in Hong Kong there are several kinds of hotels categorised such as
luxury, resort, hostel, city, etc. to accomplish different customer’s need. From the help of
research, it has been assessed that there are some hospitality functions which help to Hong Tai to
increase customer satisfaction level (Sun, Law and Tse, 2016). In other words, this industry
grows performances and effective results in Hong Tai. With pursuing different operations and
functions in hotel, the selected business able to provide good services to each person.
Role of hospitality industry determines in travel and tourism to make interrelationship
with it for enhance profitability. This is because, it delivered different types of facilities and
services to passengers such as accommodation, food, entertainment, bars, clubs, etc. (Ryan,
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2015). Travel and tourism business also charges high price to deliver their effective services.
Hospitality provision such as food and beverages need to be delivery that can be affected to the
operations in both aspect positive and negative as well.
TASK 2
2.1 Implications within the hospitality sector business
In this aspect, hospitality industry works with many sectors who have interrelationship
with travel and tourism. This is because, hotels can work with various agents and tour operators
those are intermediates and also promote operations to accomplish their goals and objectives
(Leung, Law and Buhalis, 2013).
Integration of the travel and tourism sector organisation with hospitality industry create
impact on the horizontal and vertical integration on hospitality organisations. From past years, it
can be seen that enterprises focused to gain more profits and revenue at low operating cost. In
this aspect, organisation also started to produce effective services at customer place that decrease
source conditions. In order to implement the strategy, the organisation also integrate operations
with other business to save their own money (Stanford and Guiver, 2016). It is the best method
that helps to the company to enhance presence at global level as well as enhancement market
share. This thing has been applied in hospitality and travel and tourism organisations. It can be
found for making interdependent on each other to make separated.
Benefits of integration can be determines to understand Hong Tai to make effective
results. With the help of making contract with Marriott hotel to make accommodation, food and
beverages and other facilities (Viljoen, Roberts-Lombard and Jooste, 2015). This contract also
provides significance to the organisations. The hotel also enhance sales of services and tourism
enterprises is attracting customers to offers various types of packages. On the other hand, both
organisation also able to show the presence at international level. It also increases market share
for Marriott and Hong Tai and their profit level as well (Shuriye and Daud, 2014). As results, it
can be stated that integration in hospitality and travel and tourism sector businesses beneficial to
create opportunities of successful aspects and market growth as well.
Further, vertical integration is another method in which the business make agreements
with other enterprise for particular purposes. Intention behind this is to enhance profitability and
reduces cost of operations (Guizzardi, Guizzardi and Ranieri, 2016). This integration can be take
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place in term of forward, lateral and backwards. In the Hong Tai, backward vertical integration
method used which create to operate functions and operations with different groups. It includes
Hong Tai tour operations, cruises and many travel agents, etc. Beside this, the chosen
organisation also adopted for forward vertical integration to merged enterprise with other
enterprise (Viljoen and Roberts-Lombard, 2016). Impact of such activity on the hospitality
business also able to control on the value chain. Service distribution can be easy so that cost can
be reduced by the chosen firm to effective utilization of resources. This activity can impact to
make competitive advantages to maximise profits in business.
In addition to this, horizontal integration is essential for the firm to maximise profits and
enhance customers to accomplish economic growth. Hong Tai also follows horizontal integration
with merging their business with My travel and co-op travel. In this aspect main aim is to save
costs and gain more profits to develop several opportunities for increasing employment. It can be
impact to accomplish economic scale through selling several services in the large volume. Main
advantages of this integration is sharing of resources and reducing global market cost (Sarkar,
Au and Law, 2014). However, it also creates disadvantages due to integration of cost of
international trade.
Vertical integration is a kind of method in which there is a combination of one or more stages in
an organisation and is controlled by the other organisation. The main reason behind this is to
increase the overall profit of the company and to decrease the operational cost. It can be of three
type i.e. forward, lateral and backward. Hong Tai has adopted the backward vertical integration
method and buy applying this it can operate many groups such as Hong Tai tour operation, Hong
Tai Cruises, Hong Tai Travel Agent, Hong Tai Airlines etc. (Kotler, Bowen and Makens, 2006).
Along with this company has also adopted the forward vertical integration in this it has merged
the business of many other organisation to reduce the cost of airlines. Due to the addition of such
activities in the hospitality organisation many organisations are now able to control more on
value chain. Also, just because of this, the distribution of many services has become more
convenient. And due to this the cost of different services, which are provided to the customers
are also decreased which result in the more efficient utilization of resources (Airey, Dredge and
Gross, 2015). By the use of vertical integration, organisations had taken many advantages and
got the chance to deliver distinct services to the user.
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Similarly, the horizontal integration is quite important for the organisation to increase the
profit ratio of the organisations. With the help of this integration, Hong Tai has opportunity to
enhance their efficiency that assists to meet with international trade advantages. This assists to
understand effective results in successful manner to make sure that merger can easily make with
other businesses. In order to merge the company with TUI and first choice, cost of travelling can
be reduced. Therefore, it leads to enhance profits that helps in saving money and enhance
services sales. Along with this, agreements also made with other businesses that reduced
expenses and reached untouched market (Guizzardi, Guizzardi and Ranieri, 2016).
Sharing of resources with other businesses, Hong Tai can easily decrease wastage of
resources. However, negative impact cut the benefits from existing profits volume and it can also
distribute with several organisation partners. In addition to this, in the future, firm also face
reduction in the overall value of brand in the marketplace. Vertical integration affected to the
business of Hong Tai in positive and negative both aspects. Positive impact of vertical
integration enhance investment and developed new services in the enterprise. In this aspect,
travelling services can be expand in successful manner that helps to make customer
differentiation according to services and competitors position. In this aspect, the organisation
able to enhance their market share and profits easily (Leung, Law and Buhalis, 2013).
2.2 How integration affect to the hospitality sector of the market
Importance of the pricing policies and branding
Vertical integration is the highly certainty for quality of travel and tourism services of the
enterprise. Hong Tai has the high control on the quality of services which need to be delivered
with other organisation partners. With working Marriott hotel, the selected business unit can
control on the several operations and functions. However, vertical integration create negative
impact to balance capacity. This is because, it is very hard to make balance in high and low
demand situation. It generates dependency on the other enterprises to meet with objectives and
goals of the enterprise (Airey, Dredge and Gross, 2015). It also leads to reduce dependency to
other business to accomplish effective functioning. It can also diminish flexibility of Hong Tai.
This is because, there are several actions taken by the enterprise to minimizing consequences of
vertical and horizontal integration.
In this direction, first response of the enterprise is to make standardization of different
services with all partner of the business. It also helpful to face challenges when Hong Tai
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operates functions and operations at global level. Further response is to maintain capacity,
flexibility and capabilities to open guest house. It also assists to diminish dependency on the
other organisation to accomplish effective results and objectives at workplace (Viljoen and
Roberts-Lombard, 2016). With the help of making good and effective brand image, there are
several advantages can be created for competition. Hong Tai also take other action to make
effective results in business unit. Branding tools helps in the enterprise to attract more customer
and gain their loyalty towards the operations. These types of responses can make consequences
of vertical and horizontal integration of business operations.
TASK 3
3.1 Plan for promoting product of the hotel to meet with target market
In order to develop the plan, hotel industry need to understand their hardware that is most
important fundamental aspect to satisfy customers. It is very important to understand services
which need to be provide to customer by hotels. Beside this, there are many customers who
chose hotel to considered physical evidence first to assess their design (Guizzardi, Guizzardi and
Ranieri, 2016). Room design and many other good looking facilities such as supportive
accommodation determines in the effective aspect. It need to be make attractive and hygiene so
that customers attracted towards the Hong Tai easily. It is the best way to attract so many
customer together within the enterprise. Interior and exterior design need to be excellent so that it
is beneficial to make memorable trip.
On the other hand, it can be stated that service scape is the captioned components that can
be make positive and negative impact on the customers. Therefore, each hotel essentially need to
know style of guest to create and design ambience to cater requirement of guests to compare
performances with competitors (Leung, Law and Buhalis, 2013).
3.2 Key components of business plan
Each year, hotel have several operational plans to meet with their budget and hit the
target customer. First objective is to set and let all the staff members to keep smooth functions
and operations to make good results. Objectives of the enterprise around increasing 10% with
reducing turnover rate of staff. In order to minimize negative comments, objectives need to be
designed in plan to organised functions and operations in well manner (Sarkar, Au and Law,
2014). Analysing the outside environment also explores opportunities to identify threat to run
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hotel at high risk. With the help of selection of right guest segmentation, organisation also able to
pay more attention to provide products and services at low cost. When the hotel find wrong
segment, it can be create negative impact on the hotel revenue.
Target market includes analysis and understanding of several factors which could be
affect to serve interest of individual consumers and their market as well. Following are certain
characteristics of services have major impact on marketing strategies:
 Intangibility: It is very hard to show good services to promote hotel outcomes that are
more difficult in nature.
 Inseparability: When services delivers to guest, high volume of staff members required
to ascertain effective results within the organisation.
 Perishability: It is very challenging to sales staff due to hotel goods are different with
other organisation products (Kotler, Bowen and Makens, 2006).
3.3 Operational requirement within the hospitality products that includes organisational structure,
allocation of human resources, issues and staffing related requirement with promotional
activities
Along with this, all components are playing major role in operation and certain issues are
also takes place in it because of seasonality.
Staffing:
In order to make effective plan, there is large volume of staff members required for
hospitality enterprise to make successful results. In this way, restaurants required waiting,
cooking and skilled staff members in wider term to entertainment, reception and many other
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Illustration 1: Key components

things. In addition to this, there are also certain members required who assists to promote
effective functions and operations in business unit. With the help of skilled employees, the
organisation can share their roles and responsibilities with them. Therefore, it assists to enhance
productivity of current workforce to make effective production process. Further, the organisation
can also provide training to their staff members so that they can participate in decision-making.
Seasonality:
In hotel industry, there are many jobs describes as seasonal. This is because, according to
weather and climate conditions, at workplace of hotel required employees. In certain part of the
year, there are factors which create impact on tourist demand and customer needs as well. In this
aspect, operational plan need to be accomplish with several activities and time setting is also
required to accomplish each objectives. Time management is very essential in this aspect
because season perceive with the time setting (Airey, Dredge and Gross, 2015).
Compliance with regulations:
There are several regulations exist that are related to employment in tourism industry. It
could be affect to hotel and restaurants functions and operations in significant manner. It can be
stipulating working conditions and payment rates as well. All rules and regulations of
government need to be followed by the hotel industry that assists to make effective functions and
operations. Therefore, it is beneficial to promote product and services with marketing of different
approaches (Viljoen and Roberts-Lombard, 2016). Regulations also need to be set with budget
aspect so that operational planning can be measures.
Promotional activities:
Marketing mix used to inform customers about goods and services that are available in
front of the company. In this aspect, several elements need to be included to make effective
functions and operations in business unit in successful manner. There are several elements
through hotel can promote their products and services in effective way. This is because, in this
way, advertisement can made for product or service promotion through television, radio,
newspapers (Guizzardi, Guizzardi and Ranieri, 2016). However, hotel use traditional method so
that these elements consists important role in successful operations and functions of the business.
In addition to this, promotional activities can also made with magazines, online resources and
many other things in business unit.
Sales promotion:
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In the off season, generally hotels demonstrates high discount and many other facilities to
attract customers. In this way, at cheapest rate products can be launch in market to fulfil capacity
because of the perishability. Sales promotion is short term tactic that assists to boost sales with
suitable method to make long term loyalty. It is the creative sales promotion tool that aimed to
make significant results in business unit. It possesses several advantages and disadvantages as
well. In advantages, it assists to gain quick boost to sales that enhance profitability at workplace.
This also helps to encourage customers to try product and switch brand. However, sales effect
only determined in short term perspective to develop effective functioning in business unit.
Customers also come to expect and anticipate further promotion activities (Kotler, Bowen and
Makens, 2006).
Social media:
It is the most effective long and well used to promote products and services of hotel
industry. In this way, the chosen enterprise use traditional media which assists to grow effective
results to make effective functioning in business unit. Social media is also known as the modern
promotional tool that assists to designed effectively business community to make effective
results in business. There are several elements can be used to make effective functioning in the
organisation such as Google, Twitter, Facebook, Instagram, You Tube, etc. (Leung, Law and
Buhalis, 2013).
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CONCLUSION
From the above report, it can be concluded that hospitality industry in travel and tourism
industry play a vital role in successful business operations. In this aspect, Hong Tai travel and
tourism enterprise have been taken in the present report. In this way, role of the business unit
describes to offers several types of services to customers or travellers. Related organisation of
travel and tourism industry arrange services such as food, accommodation, events of adventures,
etc. Furthermore, report articulated about implications of integration in hospitality sector
business to work with travel and tourism industry with several mediators. Moreover, it discussed
about importance of branding and pricing policies that affected to the hospitality sector
businesses. At last, operational plan has been explained with different elements such as staffing,
seasonality, compliance, promotional activities, social media, etc.
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Illustration 2: Operational plan

REFERENCES
Books and Journals
Airey, D., Dredge, D. and Gross, M. J., 2015. Tourism, hospitality and events education in an
age of change (Doctoral dissertation, Routledge).
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15(4). pp.620-639.
Fong, L. H. N., Law, R. and Yap, M. H. T., 2016. Experimental research in hospitality and
tourism: a critical review. International Journal of Contemporary Hospitality
Management. 28(2). pp.246-266.
Guizzardi, A., Guizzardi, A. and Ranieri, E., 2016. Rating hotel quality for corporate business
travel departments. International Journal of Contemporary Hospitality Management.
28(12). pp.2842-2863.
Leung, D., Law, R. and Buhalis, D., 2013. Social media in tourism and hospitality: A literature
review. Journal of Travel & Tourism Marketing. 30(1-2). pp.3-22.
Ryan, C., 2015. Trends in hospitality management research: a personal reflection. International
Journal of Contemporary Hospitality Management. 27(3). pp.340-361.
Sarkar, S. K., Au, N. and Law, R., 2014. Consumer democracy in hospitality industry: a study on
the role of Facebook. International Journal of Qualitative Research in Services. 1(3).
pp.219-231.
Shuriye, A. O. and Daud, M. R. H. C., 2014. Hospitality and Leisure between Religious Maxims
and Modern Facilities. Mediterranean Journal of Social Sciences. 5(27 P2). p.1127.
Stanford, D. and Guiver, J., 2016. Driving pro-environmental change in tourist destinations:
encouraging sustainable travel in National Parks via partnership project creation and
implementation. Journal of Sustainable Tourism. 24(3). pp.484-505.
Sun, S., Law, R. and Tse, T., 2016. Exploring price fluctuations across different online travel
agencies: A case study of room reservations in an upscale hotel in Hong Kong. Journal of
Vacation Marketing. 22(2). pp.167-178.

Viljoen, K. and Roberts-Lombard, M., 2016. Customer retention strategies for disintermediated
travel agents: How to stop customers from migrating to online booking channels. Journal
of Applied Business Research. 32(2). p.541.
Viljoen, K., Roberts-Lombard, M. and Jooste, C., 2015. Reintermediation Strategies For
Disintermediated Travel Agencies: A Strategic Marketing Perspective. The International
Business & Economics Research Journal (Online). 14(3). p.561.
Online
Conrad, B., 2017. How to Develop a Staffing Plan for a Business Organization. [Online]
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organization-771.html>. [Accessed on 17th August 2017].
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