Hospitality Provision in Travel & Tourism Sector: Report

This report analyzes the interrelationship between the hospitality and tourism sectors, emphasizing the integration's implications. It identifies the unbreakable link between the two industries, where tourism relies on hospitality for services like accommodation and catering. The report delves into the benefits of horizontal and vertical integration, such as market control, globalization, branding, and standardization, while acknowledging potential disadvantages like monopoly creation and internal issues. It uses PKF hotel experts as a case study, highlighting their partnerships and service offerings. The report also outlines operational requirements and organizational structures, including human resource allocation. Overall, the report provides a comprehensive overview of the hospitality sector's role in tourism and the impact of integration on business operations.

Hospitality
Provision
in Travel
&
Tourism Sector
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Table of Contents
TASK 1............................................................................................................................................2
1.1 Identifying interrelationship between hospitality and tourism sector....................................2
TASK 2...........................................................................................................................................4
2.1 Implication of integration to the hospitality sector................................................................4
2.2 Integration has affected a Hospitality Business...................................................................5
3.3 Rationale for a project ...........................................................................................................7
3.2.Plan for a Hospitality Business showing the Operational Requirements and Organisational
Structure in relation to Human resource allocation.....................................................................8
CONCLUSION:............................................................................................................................10
Books and Journals....................................................................................................................12
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INTRODUCTION
In United Kingdom, the hospitality industry is growing at a very rapid rate. The tourism
company with the support of hospitality industry is able to provide various facilities to tourist.
An additional service provided by the Tourism sector has encouraged people to travel. Tourism
industry has formed a partnership with companies operating in hospitality sector.
The aim of developing partnership between hospitality and tourism sector is to cater the
all types of needs as well as demands by the tourist. With the support of Hospitality sector, tour
and travel organisation has able to provide high level of satisfaction to client. By building the
partnership with organisation operating in hospitality sector, tourism enterprise has able to fulfil
its commitment of providing comfort as well as good experience to tourists.
The present assignment focuses on identifying the relationship between tourism and
hospitality sector. It also emphasizes on analysing implication of integration to hospitality
industry.
TASK 1
1.1 Identifying interrelationship between hospitality and tourism sector
The relationship between both is unbreakable. Both industries are interrelated to each
other, where in tourism industry consists of customers and destinations and hospitality industry
serves food, area of living, etc. for overall enjoyment in their chosen destination. Tourism
industry services are supplied by the hospitality industry.
The main characteristics of the hospitality industry are they provide the safe recreational
environment to us. The main role of this industry is that they give long hour’s duty to the chef
which is very tiresome job but the appreciation given to them is very much good and gives them
the opportunities or their career which is included in their passion (Alonso and O’Neill, 2010).
The quality of food which is prepared depends on the conditions they are working which are
governed according to the laws. The employees who are working in this industry must know how
to deal with such a stressful environment. The dangers in job can be cuts, wounds, burns etc.
This industry takes care of all laws which are required in this.
This industry focuses on issues relating to hotels and laws relating to this. The industry
is facing a main challenge about gambling. This industry is one of the main in hospitality sector.
There are certain laws that are made which are designed to secure from the fraudulent practices
and taking the advantage of the others. The focus of the industry is to remove all-unfair practice
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which is prevailing in hotels (Chathoth and Olsen, 200). This industry has in the focus in the
fulfilling the responsibility of secure environment with no harm to anyone. In every industry, it
focuses on the right of the equality in the working environment and Equal Employment Act in
the hotel. It offers many more opportunities in job. There are some hotels which gives two types
of the work like front office and kitchen which is the main task in this.
In PKF hotel experts which is situated in UK, provides all world-class facilities. The
services provided by this hotel in the business convenience are ATM nearby, availability of
digital key, exchange of currency, deposit box to store all valuable items, lounge area, languages
known by staff, rental car, convenience store which is on the site (Robson and McCartan,2016).
For family comfort are separate menu for children, special packages for the family, cradle for
small babies etc. For fitness there is the steam room, Tours for sightseeing. The objective of PKF
hotel experts is to fulfil the demand of the customers at reasonable rates.In addition to this
business entity also intends to generate more revenue provides various additional services to the
customers like rental car facilities, transportation, airline facilities etc.
PKF hotel experts has been recognised as leading enterprise in hospitality sector.
Business entity has formed partnership with much tourism as well as transportation companies in
order to provide different facilities to their customers. Business entity is also recognised as the
biggest accommodation service providers in United Kingdom. An enterprise has large workforce
those who are working in many countries. Sufficient amount of Human Resource capital has
helped an organisation in delivering products or services to wide number of customers. PKF
hotel experts has conducted merger with airline companies in order to provide more services to
visitors. PKF hotel experts delivers wide range as well as variety of accommodation facilities.
Villas, restaurant, Hotel etc. (Espino-Rodríguez and Taylor,2006) are some accommodation
services offered by PKF hotel experts which largely based on the budget of customers.
Additional facilities provided by PKF hotel experts has supported business entity in attracting
more number of customers and enabled firm to influence people to stay for long period at
particular destination. In addition to accommodation services, PKF hotel experts also provides
catering facilities to people by taking contracts (Buhalis and Crotts,2013). It offers good quality
of food at reasonable price to client. The manager in PKF hotel experts has planned to form the
partnership with tourism companies has assisted business entity in increasing the customer base.
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By forming a partnership with tourism PKF hotel experts provides quality environment
to the clients by which they feel like home and want to visit again. Organization provides
economic budgetary services to the clients that suit their budget and influence them to come
back. An organisation classified the services into program that classified accordant to the budget
of customers like 3 star, 5 star and 7 star hotels which is suitable for the customer to choose the
hotel. The fundamental policy of an enterprise is to concentrate on the satisfaction of the
customers by providing quality services to them. Business entity is keen to attain the target by
satisfying the demand of the customers.
TASK 2
2.1 Implication of integration to the hospitality sector
Integration is the need of an hour as nowadays hotel has undertaken many activities such
as airline agency, food and beverages business, ground services, etc. and it becomes important
for the hotel to opt for integration in order to reduce down the cost, gain better customer
satisfaction and to decrease competitors in the business. The integration is generally done to
overtook the other business. The integration is mainly of two types such as Horizontal
Integration and Vertical Integration (Brotherton, ed., 2012).
 Horizontal Integration: It refers to that integration when company expand its business
in the same level or within same department in the supply chain example hotel can opt for
the merger or acquisition, or it can adopt the strategy of operating in different countries
while expanding there business at overseas market, opening of more hotels in the supply
chain, etc. (Koc, E., 2013).
Benefits of Horizontal Integration:
 When the former overtook the latter it makes benefits to the former as there would be less
competition in the market. The hotel can flourish and gain more profits and revenue to it
pockets.
 The benefits of acquisition help the hotel to reach at higher place and expand itself
overseas with an increase in customers/visitors. This improves and help hotel to get
stronger and make it popular across the globe.
 This help hotel to enter into new venture and business so that they can add more service
or products into it business line
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 This enables the firm to get economies in there scales of operations. Because there cost of
operation is reduced and scale of operation increases which results in overall profitability
▪ Vertical Integration: It refers to that type of integration where the company
/hotel buy its own suppliers, or any other hotel serving in the supply chain. This is
done to increase the base of consumer and services provided. Example, earlier the
hotel who used to get soaps and towels and other basic amenities from there
suppliers. Hotel has opt for making and producing a same within the
manufacturing unit of hotel or it will buy over his manufacturer.
Vertical Integration benefits in many ways like:
 The hotel that overtook the other hotel or suppliers makes them to attain monopoly in the
market thus they can provide the same quality of services and products under their brand.
 This enables to get better co-ordination in the hotel as they don't need to wait for a
completion of their orders from there suppliers as hotel can now manage by itself.
 The company can gain benefits of cost reduction has there products are made within
units of the company (Rodríguez-Antón,del Mar Alonso-Almeida, Celemín and Rubio,
2012).
But, there are certain kinds of disadvantages to the integration as when the two big
companies undergo a merger or acquisition it results in creation of monopoly and competitive
advantage because of which the smaller companies in the market suffers and could not grow as
they are unable to match their level thus leading to the shutdown of their business and creation of
unemployment in the economy (Martínez, Pérez and Rodríguez del Bosque,2013). Moreover,
these mergers create problems for the hotel as they are not able to manage the size of an
organisation, flexibility of organisation is hampered and may result in rise of some internal
issues within two hotels/ companies. Further, when the hotel underwent new ventures, they may
not result as a successful business and creates loss to the former. There is also a loss when the
hotel overtook the business at time of recession or crisis.
2.2 Integration has affected a Hospitality Business
The integration is mainly of two types such as Horizontal Integration and Vertical
Integration. However, to flourish in the hospitality industry many hotels undergo several other
kinds of integration (Leonidou and et. Al, 2013).
The integration affects the hospitality business in many ways which are:
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 Market Control: The hotel who opts for integration enjoy control over the growing
market. They get increasing number of customers in their hand and can provide large
number of services to these customers. More-over being associated with these big
companies who has trusted brand image and increasing brand loyalty helps the subsidiary
hotel to flourish. Similarly, the Hilton hotel can now provide much better services to
there customers as it becomes stronger and has enough assets for it service. While, in
other case where the famous Marriott hotel who is a global hotel when overtook the
business of Starwoods Hotel and resort and the Delta hotel this expanded it market base
and helps to grow and flourish more.
 Helps in Globalisation: The globalisation has benefited the company as hotel/ company
can make it business reach beyond the geographical boundaries and overseas market.
These markets prove as the boom to the companies'/hotel revenue and profits, it also
helps to remove trade barriers between the countries and helps to flourish the tourism
industry. The acquisition of Marriott has enabled company to provide its services in some
prominent part of US and to get more areas of Americas under it market base. The
acquiring of Hilton by Blackstone has helped the hotel to gain more profits with
increasing services.
1. Enables Branding: The hotel who enjoys a strong brand image in the market when
merges with some other hotel; it enhances the efficiency of it with subsidiary holdings.
Similarly, when the Marriott hotel of America overtook two hotels, Starwoods and Delta
Hotel, services of these hotels enhances as customers will get same class of service on it
subsidiary holdings as they used to get in the Marriott hotel i.e. the power of branding. In
other case, when Hilton hotel was acquired by Blackstone it benefits the hotel to bring
along it business in more suitable way and retain its customers(Millar and Park, 2013)
 Enjoys Standardisation: The Company who lacks in standard services are benefited.
This is the benefit of Integration as company opt to follow standardise procedure at every
outlet so that customers/visitors gain same quality of services. Hilton hotel integration
with Blackstone resulted in providing same set of services which they used to serve.
Similarly, the subsidiary holdings of Marriott enjoys the same quality of standardisation
of services which has been served in the Marriott.
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 Competitive Advantage: The Company get over a competitive advantage when big
companies/hotel merges with each other. The quality and quantity of services provided
by them cannot be matched by smaller firms or enterprises. The acquisition of Marriott
Hotel with Starwoods Hotel and Delta Hotel enables the former to gain power of
competitive advantage in terms of services, it quality, increased customers based and get
the advantage of highly competent personnel and well-trained staff who assured a
dedicated service to the customers (Šerić, Gil-Saura and Ruiz-Molina, 2014).
3.3 Rationale for a project
The hospitality business is the growing venture as it is attracting more and more number
of consumers. The recent trends show the attraction of young customers towards the fast food,
pubs, nightclubs. The trend of attending clubs for weekends and celebrating the occasions with
friends and families. In addition, there is an increase in people consumption for fast foods.
Moreover, entering into the hospitality business gives more opportunities like fast food chain,
coffee shops, pubs, nightclubs, catering business, etc. though there is a tough competition in the
market but the plan here is to develop the fast food market for young generations and the middle
class income groups who can afford the service of fast food chain, coffee shops and nightclubs. Plan: The plan of the company is to develop the fast food chain along with coffee shops
in the streets of London so to attract the young customers and college going students to
spend there time and get relax over there. The company also targets the middle class
families who would love to spend there some time to these coffee shops with there loved
ones. The aim of the company is to provide a cheap but quality food to there customers
and to make them enjoy the pleasant view of the streets (Jun and Arendt, 2016). Location: Company has decided to choose for some common and famous locations on
the street of London so to attract more number of visitors to the restaurants. Along with
this the company has decided to choose for a corner place for the business in a crowded
street, to attract the young people and families to the coffee shops. Market Research: Before entering into the market the proper research of that market is
needed. Thus, to know how much investment it will require, who are the competitors and
what is the degree of the competition, etc. further to assess the market size and make a
analysis of the various segments of the markets. The company can opt for primary
research conducted through questionnaire.
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 Size: The size here refers to the size of the restaurant. The size will be:
 Fast food area= 20 * 24 square feet
 Coffee shop area= 18 * 20 square feet.
 The counter area= 18 * 24 square feet.
The restaurants would have the capacity to adjust the 200 people in one time with 150 people can
accommodate in the fast food area and the 50 can get place in the coffee area. Target Market: The fast food and coffee shop business aim is to attract people to hangout
and or to spend some quality time with there friends and families. The company would
here focus on young generations and the people of middle class family with medium or
little income groups so that they can make out some good time with there fellow ones. Investments: The investment required in the business is not much and the company can
finance through the financial institutions or can issue shares of the restaurants to there
existing shareholders. Products and Services: the restaurants will provide the local street food of London along
with some experimental food made from the original recipes of company. The menu of
the restaurant will consist of local items like Burgers, Fries, and there will be introduction
of Diet coke in the menu. Along with this the restaurants will be serving coffee of other
regions for those who prefer to have better quality of coffee. It will be serving for all the
seven days of the week from 8 in the morning to 10 in the night it will be open for some
extra hours on weekend.
 Culture: The recent trends shows the increasing interest of the youngsters towards fast
food chains. Company would focus on building up the peaceful culture through
restaurants and asking the visitors to maintain harmony in the culture, avoidance of fights
, cleanliness of the area of the restaurant and keep the environment green and healthy.
3.2.Plan for a Hospitality Business showing the Operational Requirements and Organisational
Structure in relation to Human resource allocation.
For the successful running of any business there is the need of the employees who are
qualified and competent in there work. The running of restaurant business would be a hard job
that requires dedicated staff and team to manage and operate the business. This would require
proper allocation of the employees and workforce for accomplishment of goals on given time. As
the employees are directly serving the customers they need to be polite, humble and calm while
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they attain customers. The harsh behaviour of employees can lead to loss and unsatisfied
customers(Yang, 2012).
The organisation structure of the restaurants will be as follows: Owner: The owner refers to one who owns the business of the restaurants. They
generally make out the maximum profit but at times they bear the maximum amount of
loss. The company is the owner in this scenario. It is a responsibility of the owner to hire
the General Manager. But, they can also assign Executive Chef if he wants. General Manager: The general manager is the person who is responsible to look out for
day to day working of the restaurants. He is assigned by the owner thus needs to keep a
proper connection with the owner to get and give the information in relation to the
restaurants. He has the right to hire the skilled employees and to fired unskilled ones. The
general manager looks into the payroll of the employees (Nickson, 2013).
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 Accountant: The role of the accountant is to keep the track of the transactions that occurs
in the business. He looks into the calculations and the payments received for the
products/service. Further, he is answerable to both the owner and the general manager. Executive chef: The chef plays a vital role as kitchen is the heart of restaurants.
Executive chef is appointed by the owner thus it becomes responsibility of chef is
providing the excellent quality of food to the customers. Take necessary actions in
relation to kitchen and check the standards of quality of every food. He should check for
needed inventories for the kitchen and should inform the manager for same. Dishwashers: They are generally the most unskilled labourers and last in the hierarchy of
organisational structure. Minimum or no qualification is required for this work. They are
confined to kitchen area and answerable to the kitchen manager. The dishwashers are
hired sometime on daily wages. Servers: They are the ones who ultimately serves the customers. The serves share direct
interactions with customers so servers must have polite and calm attitude towards the
customers. They should be well trained and behaved properly in front of customers. Operators: There is anew trend in the market, company are serving customers on the
phone calls to there house or venue mentioned by customers in order, to increase the
customers' satisfaction. This needs delivery staff who can provide these services on
demand of customer.
 Guards: They are the last person who job is to take care of the hotels. The guard usually
works outside the hotels and he is not responsible for any work within the hotel. The
guard are chosen by the general managers and need not have to posses any qualification
for the job.
CONCLUSION:
Thus, we conclude that there is the relation between the hospitality and tourism industry.
Every person has different reasons to travel for it can be leisure, business or maybe some other
reason. There is a need to provide good and comfortable atmosphere to the visitors so they can
enjoy and create memories. For this hotel business need to opt for integration of there business in
order to flourish and get successful in entity in the market. The hotel can opt for vertical
integration or horizontal integration like merger or acquisition with some famous and more
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competent hotels in order to expand and make the business reached over new heights. The
integration helps the hospitality industry to have good market control, economies of scale,
globalisation and get better branding of there hotels and business. There is a great possibility to
enter into hospitality market as it provides many options to explore like; fast food chains,
catering business from home, pubs or nightclubs, etc. Brotherton, B. ed., 2012.
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