Report: Hospitality Provision in Travel and Tourism Sector Analysis

This report analyzes the interrelationships between the hospitality and travel/tourism sectors, focusing on Ritz Carlton and its integration strategies. It explores the benefits of business integration, examining how hospitality firms like Ritz Carlton can collaborate with tour operators like Thomas Cook to enhance customer service and expand market reach. The report delves into the implications of integration, discussing horizontal and vertical integration models, including backward, forward, and lateral integration, and their impact on the hospitality industry. It emphasizes the importance of understanding customer demands, offering promotional strategies, and building strong relationships with clients. The report also highlights the economic contributions of the hospitality and tourism sectors to the UK economy, emphasizing the need for coordinated marketing efforts and proficient staff to ensure success. The report concludes with a rationale for the chosen project, justifying decisions linked to the target market and the benefits of integrated services.

Hospitality Provision in
Travel and Tourism
Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationships between hospitality and wider travel and tourism businesses..................1
TASK 2............................................................................................................................................4
2.1 Implications of integration to the hospitality industry..........................................................4
2.2 Affect of integration on hospitality business........................................................................6
TASK 3............................................................................................................................................7
3.1 and 3.2 Rationale for the chosen project by justifying clear decisions linked to target
market..........................................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality is referred to be a broader segment of service industries that plays a vital role
in enhancing the economic structure of a nation. It hereby comprises with some largely zealous
services to the users in regard to accommodate them in a very gratified and pleasing manner. It is
thus considered to be a crucial sector of customer service with a prior focus of rendering the
clients into a commendable way (Bharwani and Mathews, 2012). In similar context of customer
service, Travel and Tourism sector is yet another critical section with an equivalent approach
towards servicing the upcoming tourists and travellers into a significant manner. It is precisely
due to the acquired experience of the service users where the affiliated firms and their earnings
are entirely relied upon their granted response. It is thence essential for such accompanied firms
of hospitality and travel or tourism to mostly focus upon catering a liable service to the
consumers with a prior concern of fulfilling their existent desires.
Both these fields are together deliberated to have a dynamic nature with frequently
altering demands of the users. It is hence important for the service providers to reckon such
modifications into their prevalent market with a constant formulation of measurement. This will
significantly assist the firms to attain an enviable earning with a consequent aid of satisfying the
changing preferences of their customers (Fullagar, Markwell and Wilson, 2012). The below
report is to demonstrate the similar functionalities of Ritz Carlson as one of the most renowned
hospitality industry of UK. The report has together emphasised upon their integrated form of
business where hospitality sector has been merged with the sector of travel and tourism. It is
however with some major considerations by the designated enterprises which is especially for a
smooth operation of the business activities, as articulated into the subsequent parts of the report.
TASK 1
1.1 Interrelationships between hospitality and wider travel and tourism businesses
Being into the position of an assistant manager of Ritz Carlson, I am hereby responsible
to source a relevant conception for the betterment of my hospitality firm. This is where relating it
with another common sector of travel and tourism can largely assist in implementing an
improved version of hospitality services. It is where their consolidated services can evidently
prove into a desirable content of results. This will together benefit both the hospitality and tour
operating entities into which they can reliably integrate their similar natured goods and services.
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For a further comprehension, I am hereby presenting a report to establish the inter-relative
aspects of hospitality with the businesses of tours and travels. Thomas Cook is the partnered firm
to represent an active role of tours and travels.
Both hospitality and tours and travel businesses are regarded as an indispensable part of
today's modern era where globalisation has largely benefited these sectors. It is basically to
operate at a worldwide level with an ease of globally expanding their respective business
activities. This particular portion is to define an interconnected relationship among the above
ascertained service industries of hospitality and touristy (Medlik, 2012). It is basically to aim at
their common functionalities with a prior scrutinisation of hospitality industries. Hospitality
industry is mainly known to be accommodation providers where the users importantly lookup for
a relaxing state of settlement. It is however due to many reasons when people often prefers to
choose from some largely accessible establishments that refers to hotels, motels, guest houses,
lounges, self catering apartments, etc.
People thereby chooses it as per their considerable requisition or purpose of staying into
such ascertained forms of establishments. These set ups together exists with some distinct
formulations of their own that directly relates to their servicing approaches to the upcoming
users. However, some of their general obligation mainly consists of catering a proper nutrient to
their customers. This represents the catering provisions of the hospitality firm where Ritz
Carlson has been taken into a valid consideration here. It is fundamentally known for its hotel
accommodation services where it together caters a superior quality of food and beverages to its
upcoming clients (Sigala, Christou and Gretzel, 2012). They together operates an adjoining cafe
and restaurant within the intrinsic premises of their intra-structured hotel.
Tourism on another hand operates with a major consideration of rendering a recreational
and leisured activity to the travellers. It is where the tourers consequently visits with certainly
assorted cognition of travelling with two specific purposes. It could be either referred to any of
their business intention or another peculiar aim of spending holidays. Tourism is yet again with
some other related amenities of accommodating, catering and transporting the visitors from one
place to another (Tsiotsou and Goldsmith, 2012). It is mainly arranged in the form of framing
package holidays for them or conducting business travels, etc. This could also include another
crucial enforcement of visitors attraction where the concerned tour organisation can set up an
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exceptional arrangement for the travellers. It is where the tour enterprises can facilitate their
clients to experience some famed locations of a particularly chosen tourist destination.
Business travellers however visits with two major considerations of travelling to their
advisable places to attend the meetings, seminars and conferences, etc. They thus lookup for
these crucial amenities of travelling within an apt transportation service, a proper facility of
accommodating along with some desirable facilities of catering. Thomas Cook hereby exists
with a notable recognition of tour operators in UK who together operates in almost all corners of
the world. They are well known for their merged services where it arranges all above depicted
services for their clients. It is with a significant inclusion of both business and tour packages for
their already existing users and other prospected or interested customers (Barros, Butler and
Correia, 2010). This directly relates to their interrelated relationship into which both hospitality
and touristy businesses are apparently analysed with some related services to their users.
Hospitality industries are too concerned with a similar cognition of providing an
exceptional service to their clients. It is where the holiday travellers often demands to arrange a
transportation facility for them to specially visit some profound tourist destinations. This is
where a united service of these sectors can significantly serve the customers where they can also
experience it into a commendable way. An interrelated service will not only benefit the solicitous
firms but will together ease of the stressful aspect of visitors with no prior requisition of opting
for a split service of transportation and accommodation (Cormany and Baloglu, 2011). Such
interconnected service will also aid the operational firms to yield a desirable earning of incomes
by significantly enhancing their static state of profits and revenues. This will be together
advantageous for the economic state of UK where their detached services are already playing a
momentous role in raising the existent level of economy.
This is where hospitality and touristy has been enumerated to be the most steadily
growing industries with a huge contribution to UK's economy. It is due to its rising opportunities
of employment where it has been recorded to activate around 3.8 million of jobs in UK with a
raising contribution of almost 10% GDP rate (Grady and Ohlin, 2009). As a result to which,
British government have forecasted an epochal rise till the subsequent years of 2025 when the
tourism businesses are about to impart more than 257 billion dollars into their currently
activating economy. It however requires another relevant cognition to the interrelated firms
where they are expected to operate with an interconnected team of staff. This mainly regards to
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their marketing team where they are crucially supposed to interrogate the prevailing occurrences
of the market. It will directly help the respective panel of juries to acknowledge the existing
demands and preferences of their customers.
It is basically to maintain the courteous brand image of both the firms where they can
together create an affirmative relationship among them with a coordinated manner of servicing
the users. This is where Ritz Carlson assist can operate as an accommodation provider to the
tours and travellers of Thomas Cook. It is where Thomas Cook in turn can effectively serve into
the transportation and visiting purposes of the accommodating guests of Ritz Carlson. This
interrelation can be entirely served with a prior intervention of packages where the respective
firms can incorporate their distinct services. It is with a further cognition of broadcasting such
existence of service to the users where both enterprises can implement varied means of
promotional offers (Janta, 2011). It is to largely fetch the interest of some potent customers
where the respective organisations can also make a considerable involvement of direct or
personal selling with a distinguishably appointed team of professionals.
Furthermore, it is hence essential for the firms to integrate a proficient staff into some of
their leading departments of customer service, sales and marketing arenas. It is due to the
significant roles of these professionals who will be directly responsible to handle their respective
clients. Both the firms can together aid each other by providing a significant list of some lead
clients and customers who frequently refers them to acquire their severally available services.
Some effectual promotional offers together relates to create a specialised formulation of
redemption where both designated entities can opt to render a liable discount to their
approaching users (Leung and et.al., 2013). This can however be done at the peak period of
tourism when numerous people reckons to travel with a significant purpose of celebrating
festivals outside or spending holidays at a worthy destination where UK is currently at a leading
position.
TASK 2
This is in regard to illustrate a justified form of integration into the existent services of
hospitality with tour and travel associations, being into a respectable position of assistant
manager of Ritz Carlson. It is basically segregated into two proportions where the initial
subdivisions is to exemplify the varied implications of an integrated form of services. This has
subsequently covered with their exact impact upon the hospitality businesses. It is where the
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hospitality firms are being integrated with the services of tours and travels. However, it is with a
consequent explanation of the two most accessible forms of integration that mainly refers to
inculcate either a horizontal or a vertical form. The vertical form is further apprehended into its
bifurcated forms of backward, forward and lateral enforcement of integration. It is by referring to
the most suitable form to be implemented upon the hospitality enterprises like Ritz Carlson with
a parallel instance of other related firms like Hilton Hotel, etc.
2.1 Implications of integration to the hospitality industry
Business integration is directly referred to the above discoursed formulation of integrated
operational activities of hospitality with an association to the tours and travel enterprise. It was
primarily initiated into the early years of 1990's when business integration played a vital role in
enhancing the financial constitution of the active organisations. It is basically considered as a
strategical formulation by the firms where they interrelate their ongoing activities with another
related firms who are operating into some similar sort of functionalities. A strategic integration
exists with some other leading benefits (Ye and et.al., 2011). It is where a strategic alliance
crucially helps into framing a constantly aligned strategies of operating business with a relatively
less number of expenses. It is mainly to define the lowered operational costs of Ritz Carlson as a
hospitality firm with some enlarged integrated services of Thomas Cook as tours and travels
operators. This will together aid the designated entities to render their own manufactured
services to the users with a minimised cost of outsourcing it. An integrated service further exists
with its two substantial formations, as listed below- Horizontal Integration- Such horizontal sort of integration are basically for the firms
who are tremendously focussed upon enhancing their profitability ratio of business. It is
done with an integral association of two distinctly natured firms with a prior aim of
encouraging their existent state of sale. They hereby consider raising their present base of
customers with an expanded offering of products and services to them. A recent instance
of Hilton Hotel can be represented here (Ekinci, Dawes and Massey, 2008). It is where
they have crucially opted for a horizontal integration of their business activities by
undertaking the entire association of Walt Disney World Resort. Another example can be
stated as the alliance services of airline industries. It is where they together render a
merged service of accommodating their guests into their horizontally integrated services
with varied chains of hotel. A horizontal form of integration will therefore serve its best
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to the hospitality firm of Ritz Carlson where they can associatively merge their services
with a renowned tour operating company like Thomas Cook. It will definitely serve the
vital cogitation of both the firms where they will be crucially able to enhance their static
scale of profitability. Vertical Integration- A vertically integrated service is along with a similar cognition of
educing the operational expenditure of the businesses by together attaining a desirable
state of earnings. This is significantly to enhance the profitability ratio of the firms with
an increased sales and revenues. It is where the firms with similar nature often consider
integrating their services with a similar chain of distribution. It is however considered to
be a conventional form of integration with some further segregated forms to describe
their earlier or later integrations, as listed below-
◦ Forward Vertical integration- It is where the firms duly integrates at an earlier stage
of manufacturing products with a consequent intent of rendering it to the users by
themselves (Lamsfus and et.al., 2013). It is hence a procedure into which the firm
who undertakes another firm with a primary consideration of operating the major
requisite functionalities of producing goods.
◦ Backward Vertical Integration- Such form of integration directly refers to a counter
approach of forward vertical integration. It is where the undertaken firm is only
required to execute the subsequent functions of selling and distribution of produced
goods and services.
◦ Lateral Integration- Lateral integration is where two differently related firms
considers associating their respective products and services with totally non-related
nature of goods (Mowforth and Munt, 2015).
A backward vertical integration is hence referred to be the most liable formation for Ritz
Carlson with some below listed factors of implications- Branding- It refers to the foremost concern of branding which largely affects the active
image and reputation of the firms. As a result to which, an integrated service of both
renowned brands of Ritz Carlson and Thomas Cook will greatly serve the firms by
attracting many users to acquire their merged service. Controlling the markets with an incorporation of bigger enterprises- This is however an
atrocious fact into which such largely integrated brands terribly affects the small size
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businesses (Standing, Tang-Taye and Boyer, 2014). This in turn results into causing a
significant affect to their employees and their family members as well. However, it
occurs with a momentous benefit to the large enterprises where their interconnected
services serves the users into a desirable manner. It is fundamentally due to a fallen
expenditure for both the users and the providers.
 A raised state of globalisation- It is yet with another effective measure for the integrated
bushinesses where globalisation has significantly resulted into a modernised state of
business operations. It is where the designated entities will face both the consequences of
intrinsic and extrinsic globalisation where an internal stage refers to the interaction
between the employees. Contrary to which, its external form is in relation to depict a
liable interaction among the users who are prevailing almost all around the globe. The
respective entities should hereby opt for some latest means of communication. This refers
to some certainly effective tools of social media to held an impressive conversation with
the users from any corner of the world.
2.2 Affect of integration on hospitality business
This is in relation to depict about some major consequences of implementing a horizontal
integration of services where Ritz Carlson is required to deal with some below articulated
measures of operating their business into a desirable manner. It however comprises with an
acute demonstration of both positive and negative outcomes that a horizontal integration can
fundamentally serve to them. This is with an equivalent existence of both the consequences with
a slight affirmative positioning of globalisation that mainly results into eliminating the
pessimistic facets of integration.
An integrated business mainly refers to an infused form of certainly reliable services to
serve the users with an ease of lowered operational cost along with a significantly raised ratio of
profitability. This together relates to the enhanced market shares of the operational firms where
thy can together use their brand image as a vital tool of attracting many clients and users.
Globalisation is yet another effective outcome of integration where both united organisations can
rule over their domestic and international location with an expanded form of their respective
business operations (Witt, Brooke and Buckley, 2013). A contingently enforced integration
together assists into the marketing consideration of the firms where they are primarily
recommended analysing the ongoing orientation into the newly enlarged markets. However, it
7

will also result into some terrible outcomes where the small scale industries will be directly
affected by the integration of large organisations. Below listed are some more precisely defined
components to describe the crucial affect of integration on hospitality businesses- Economies of scale and market share- This is referred to a beneficial prospect of the
integrated firms where they are consequently resulting into a lowered operational costs
with an equivalently raised profits. It is along with a differentiated concept that is as per
the applied form of integration. This principally relates to the horizontal form of
integration where the respective firms can enhance their existing base of customers. It is
contradictorily proven for the vertically integrated business where the associated entities
can also expand their business activities to create a newer customer base. Standardisation- It is with a slightly pessimistic approach by the integrated firms with
some additional attributes of being a time consuming and critical procedure to be applied
into the expended areas of hospitality businesses (Barrows, Powers and Reynolds, 2012).
It basically refers to a strict application of some predefined clauses and principles into the
newer areas as well. This sometimes result in exploiting certain negative outcomes where
the clients into the enlarged locations may not respond well to such rigorously built in
procedures. It is thus recommended to the firms to primarily investigate their
considerable areas of newer markets to precisely determine the prevailing orientation of
their clients into those enlarged locations.
 Quality of products and services- It is a dependable factor for the integrated firms into
which there is no such guaranteed prospect of rendering a superior quality of goods and
services to the customers. It is therefore a prior recommendation for both the merged
enterprises to conduct a principle examination of their rendered products and services to
their users. This subsist with a sole consideration of the respective administrative bodies
who are required to implement a relevant practice of monitoring it.
TASK 3
3.1 and 3.2 Rationale for the chosen project by justifying clear decisions linked to target market
This is to ascertain a developed plan for commencing a business into the hospitality
sector into which the organisational structure inculcates both the prospects of operational
requisitions along with a prior allocation of requisite workforce. The recent project to establish a
8

hospitality business is with a prior consideration of a chain of Landmark hotels and resort
(fictitious firm) who are considerably opting for an expanded chain of establishment into one of
the most renowned arena of London (Evans, Stonehouse and Campbell, 2012). However, such
projection requires a considerable paper work along with some other mandate provisions of an
apt investment of funds and probing an amiable location for a new set up. Landmark Hotels and
Resorts has thus opted for a sound location for its set up which is nearby to the Big Ben of
London. It is situated in St Margaret Street of London into the Westminster area and is the most
crowded area with a viable presence of tourists and travellers to visualise the notable clock tower
positioned near the parliament houses. It is however with some below ascertained phases of
completing the project into a significant manner-
Stage 1- Development
It is the foremost phase to depict the conceptual outline of initiating a business that
further covers certain significant facets of creating a common content by relating it to the leading
goals and missions of the business.
Concept
 The leading idea of Landmark Hotels and Resorts is to provide an apt level of satisfaction
to its approaching clients and users by successfully fulfilling their existent demands and
preferences. They have thence chosen one of the prime location of UK where their exists
an equivalent number of both business travellers and tourists who come to spend their
holidays.
 This will together serve to their another core objective of incoming a liable earning with a
significantly enhanced revenues generated from their raising sales.
 A prior vision of the designated firm is to primarily comprehend the changing desires of
their customers and accordingly design their operational policies (Ip, Law and Lee,
2011). For which, it has together appointed a different team of professionals at each of its
department. This mainly refers to their leading departments of customer service and
marketing, etc. where the positioned employees are efficiently proficient into their
respective profiles.
 This will together serve their another significant mission where they have knowingly
entered into a perfectly competitive market where their already exists some dominating
industries of hospitality.
9

 It has portrayed their competent approach where its major motive is to globally
expanding their set business activities by chiefly ruling over the overall ascendant market
of hospitality firms in UK.
Market Research
 This is where Landmark Hotels and Resorts is crucially supposed to conduct some liable
measures for researching the prospective considerations of its enlarged market of UK. It
further recommends the respective officials of the firm to primarily acknowledge the
existing demands and preferences of the users prevailing into that particular market
arena.
 However, along with a prior study of such socio cultural facets, it is together important
for the stated entity to study the political, economical and technological factors of UK
market which will be a resulting component to conduct a legitimate formulation of
establishing a business (Kusluvan and et.al., 2010).
 Both the reformations will significantly aid the cited entity to set up a profitable business
by eliminating any uncertain intervention of regimental bodies and instead acquiring an
enviable establishment with an equivalently responsive approach by the upcoming clients
and users.
Target Market
 It is where the firm will implement a segmentation criterion for further proceedings of the
business activities into which geographic, demographic, psycho-graphic and behavioural
segmentations are some profoundly accessible standards.
 This will basically aid Landmark Hotels and Resorts to divide the entire market upon
their ascertained criteria to produce some applicable goods and services for the users
targeted into a peculiarly chosen segmentation (Tsang, 2011).
 A demographic segmentation refers to the most amenable formulation by the hotel
industries where they can segment their targeted customers on the basis of their age,
gender and income.
 This will consequently help the firm to build their products by accordingly framing the
costing of services. A liable fixation of price is of utmost importance where the
respective entities are crucially required to acquire their operational costs by together
fetching a likely interest of their users.
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Location- Landmark Hotels and Resorts have chosen the amongst the most profound locations
of UK which is splendidly known for the existent parliament house (Link between tourism and
hospitality, 2015). Along with which, the Westminster position is together known to have some
another vibrant destinations for the tourers.
Scale- Landmark Hotels and Resorts is a large scale business with some equivalently proficient
inclusions in its infrastructure and other amenities to the users with certain variedly available
products and services for them.
Funding- An estimated budget for a completely new establishment with both the premises of
hotel and resort into such notable location of London is around 209827.13 sterling pounds
(Hoteliers’ small ideas ignite big innovations, 2015). It is mainly due to some other nearby
located facilities of banks, educational institutions, office premises and other fascinating
destinations for tourists. This will thence require the owner to primarily apply for a loan from a
recognised banking constitution that provides it within a liable rate of interest.
Products and services- This is where the designated entity has inculcated all effectual services
of accommodating and catering their clients with a stupendous inclusion of pools into their resort
arena. However, their hotel premises includes some primer facilities of restaurants, bar, gym and
sap for the approaching users.
Licensing- Here Landmark Hotels and Resorts have considered applying a standardised
formulation of services to the users with a fully transparent approach of servicing the upcoming
clients (TRAVEL, TOURISM & HOSPITALITY SPOTLIGHT, 2016).
Stage 2- Design
This is mainly referred to the ambience, culture, brand of the establishment in terms of its
contemporary interior designing of infrastructure with an Indian theme used to form the exterior
building. The functional area consists of all profound amenities of cafe and restaurant with some
adjoining facilities of spa, bar and pool for the users (Lamsfus and et.al., 2013). The customer
flow is proficiently linked to the targeted segments of market with some liable designing of
products to gratify the approaching users. A sustainable approach of the firm is to significantly
reduce the wastage of food and other nutrients by gradually eliminating it with a cleanly
maintained environment for the upcoming customers.
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 Ambience- This is in relation to define the projected atmosphere of the hotel where
despite of being situated at the most crowded area of UK. The hotel will inculcate a
pleasant atmospheric structure with a spreader greenery all over the establishment. Interior and Exterior- It is where Landmark Hotels and resorts have imparted a
contemporary outlook to define their interior building. They have together formulated a
contradictory approach of their exterior establishments by designing it with an Indian
theme to largely attract the visitors.
Stage 3- Operation
This is mainly to depict the operational consideration of Landmark Hotels and Resorts
where they have appointed a differentiated team of professionals. It is basically to contribute
their proficiency into some leading functional areas of customer service along with some other
critical departments of marketing and sales. The designated entity has hereby framed a new
policy of taking feedback from their respective guests to specify their experiences into the
configured forms (Medlik, 2012). The promotional activities are also elegantly framed by the
stated entity where they have designed two different segments of their rooms with a standard and
executive pricing for each alternatives. They have together planned to provide a considerable
discount offer to the first time approaching customers.
 Staffing by functional areas- This mainly regards to their varied functional areas of spa,
gym, pool, etc., with a different segment of employees to handle each of their segregated
departments. Specialised Qualification- It is in relation to appoint a proficient staff with some
professional candidates to handle the major requisition of customer service which always
play a vital role in hotel organisations. Landmark Hotel is therefore looking for staff
members who are holding a post graduate degree into the similar field of hospitality.
Conflicts are being associated with some below defined points of-
 Compliance with legislations- This is in relation to define the legitimate consideration
of Landmark Hotel to operate their business into an ethical manner. It is where they are
primarily focused towards pursuing the predefined regulations of UK government.
 Promotional strategies- This is where the quoted entity should implement some recent
perceptions of modern technology where social media is an evidently proven tool of
advertising and promoting their existence to the entirely targeted segment of customers.
12

 Pricing strategies- It refers to their adopted strategy of pricing goods where the cited
firm have specifically aimed towards the income group of upper and middle class
customers. Due to which, they have formed two different categories of services with a
bifurcated section of executive and standard level of services.
CONCLUSION
The above report has elucidated about an integrated form of businesses to proficiently
serve the users. It was mainly based upon the two leading service industries of hospitality and
travel and tourism with a prominent role in enhancing the economic constitution of UK. It has
primarily initiated with an illustration to define the interrelating factors between these two
segments where both the activities of hospitality and touristy consists with some common
reflection of servicing the clients. As a result to which, a consequently integrated formation of
their functions has evidently proven to give certain succeeding outcomes to the designated
organisations. Into which, Thomas Cook have represented its tours and travel business along
with a coordinated service of Ritz Carlson as the hospitality enterprise.
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