Hospitality Provision in the Travel & Tourism Sector: An Overview

This report delves into the crucial role of the hospitality industry within the travel and tourism sector, focusing on the interrelationship between the two. It examines the composition of the hospitality industry, including various hotel categories, and the services provided, highlighting the importance of accommodation, food and beverage, and event management. The report further analyzes the travel and tourism sector, including key players like TUI Group, and discusses the integration of hospitality and travel services. It explores the implications of integration, such as horizontal and vertical integration, and how these strategies affect hospitality businesses, including enhanced supply chains and stakeholder engagement. The report concludes with a discussion of how integration influences customer satisfaction and business performance, emphasizing the need for effective management and addressing potential challenges.

HOSPITALITY PROVISION IN TRAVEL &
TOURISM SECTOR

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1 UNDERSTAND THE ROLE OF HOSPITALITY INDUSTRY WITHIN TRAVEL AND
TOURISM SECTOR.......................................................................................................................3
1.1 Discuss the interrelationship between hospitality and wider travel and tourism businesses 3
Task 2 Understand the impact of integration within the hospitality industry..................................5
2.1 Analyze the implications of integration to the hospitality industry......................................5
2.2 Discuss how integration has affected a hospitality business.................................................7
Task 3 Be able to plan the development of hospitality businesses..................................................8
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market..........................................................................................................................................8
3.2 Develop a plan for a hospitality business including the operational requirements of the
business organizational structure in relation to human resource allocation..............................10
Conclusion.....................................................................................................................................12
References .....................................................................................................................................13
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INTRODUCTION
Hospitality sector has gained much importance in the present world due to availability of
wide range of services and this is the only reason customers are getting attracted towards
hospitality services (Hay, 2016). Thus, in such respect hotel Foundation of UK has been taken
into consideration as it operates the business independently in UK. Furthermore, researcher has
also discussed the role of hospitality services within travel and tourism sector and along with that
interrelationship between hospitality and tourism businesses are also stated. Moreover, researcher
has also mentioned implications of integration between hospitality industry and along with that,
impacts of such integration is discussed in the below section. Besides this, researcher has also
discussed how operational plans help the business entity to deliver prominent services to the
clients.
TASK 1: UNDERSTAND THE ROLE OF HOSPITALITY INDUSTRY
WITHIN TRAVEL AND TOURISM SECTOR
1.1 Discuss the interrelationship between hospitality and wider travel and tourism businesses
Hospitality and tourism services both are integrated with each other and both are entitled
to deliver better services to the clients (Lee, Dopson and Ko, 2016). However, the main aim of
hospitality industry is to enhance the value of tourism services so that customers can acquire
better experience. Several dimensions of hospitality industry are discussed in the below
mentioned section.
Composition of hospitality industry
There are various categories of hotels included in hospitality industry such as budgeted
hotels, five star hotels and bed and breakfast hotels. All the services are delivered to the clients as
per the requirements which makes the customer satisfied and as a result it enhances the demand
for travel and tourism services. Services delivered by hotel Foundation are integrated with luxury
aspects and this entices other clients as well (Getz and Page, 2015). The main services in the
hotel are food and beverages and accommodation amenities which enhances the value of
hospitality services. In order to deliver prominent services to the clients, hotel Foundation has
been emphasizing on better accommodation and housekeeping services which appeals customer
intention. Apart from this, the subsequent hotel ensures that all the services are delivered in
packages so that customers need to visit diverse places. Complementary as well as value added
services are included in the service list so as to satisfy all the clients.
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Pubs, bars and restaurants are another category that delivers similar services to the clients
and that also play prominent role in underpinning the amenities of travel and tourism services.
Affordable as well as luxury all types of services are included in this category especially for the
purpose of increasing customer segments. In respect to services of Foundation, the hotel also
organizes events for varied occasions according to the target customers. Small coffee shops as
well as cafes also play crucial role in managing the hospitality services (Ip, Law and Lee, 2011).
Under hospitality services, chief emphasis has been paid on luxury and prominent services so
that clients can be retained. Pubs and bars are also engaged in delivering beverage services to the
clients and apart from this, the hotel also serves other complementary services. At the time of
events and parties, hotel Foundation also makes proper arrangement for catering services so that
better food services can be delivered to the clients. Although, this works on small scale still it
plays crucial role in managing hospitality services.
Travel and tourism sector
Travel and tourism sector comprises of various amenities which include visiting services,
accommodation services, sightseeing services and food facilities. TUI group, Cox and Kings and
Thomas Cook are several populous entities that delivers travel and tourism services to then
clients with various packages (Lam and McKercher, 2013). Transportation, food services and
accommodation facilities are included in the packages which saves time as well as cost. In order
to promote the services, tour operators also work in this sector and as per the services, they get
commission from the respective entity. Such tour operators are also engaged in accelerating the
client base through promoting amenities of travel agencies. TUI Group is engaged in offering
packages for varied destinations as per the preferences of clients.
Tour operators are entitled to promote the services in an effective manner so that demand
for tourism can be increased. Most of the tourist entities are promoting services through social
media tools and digital marketing because that assists them to grab attention of wider customer
segments. Besides this, TUI Group has also integrated with hotel Foundation which helps the
business travelers to deliver prominent services to the clients (Jayawardena and et.al., 2013).
Most of the business customers of TUI Group are satisfied with the existing services because of
the additional services included in the list. Travel and tourism services are integrated with
hospitality services which also assists the clients to get all types of services. Tour operators and
tour guides both have the authority to promote the services of hospitality industry and they are
also entitled to act as mediators in the same service provision.
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Interrelationship between hospitality and travel and tourism
Hospitality industry plays prominent role in travel and tourism services because of
various types of amenities included in the service list. People travel to different places for varied
reasons and this also helps them to explore the beauty and other aspects of the country. Further,
due to travel and tourism sector, customers get the opportunity to acquire information about
various aspects (cultural and heritage) of the subsequent nation (Teng, 2011). TUI Group has
several provisions for business travelers in which they deliver customized services; however
regarding this hotel Foundation is also entitled to deliver prominent services in the realm of
accommodation and food services. Foundation hotel also arranges conferences and other events
as per the requirements of clients.
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Thus, according to this, all the travel agencies make sure that customers are satisfied with
the services. In UK, tourism is populous due to several museums, cultural tourism and theme
parks and all such facets generate demand for tourism (Tang, 2014). TUI Group delivers
complete package of services which includes various amenities according to the requirements.
Thus, from the entire discussion, it is clear that hospitality sector is accountable to accentuate on
customer satisfaction because it can impact the overall scenario of travel and tourism industry.
Since, the main aim of both the sector is same; therefore emphasis should be given towards
luxury services.
TASK 2: UNDERSTAND THE IMPACT OF INTEGRATION WITHIN THE
HOSPITALITY INDUSTRY
2.1 Analyze the implications of integration to the hospitality industry
Apparently, hospitality and travel & tourism sector both are integrated to each other;
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Illustration 1: Interrelationship between hospitality and travel and tourism

hence the services they deliver are also same in various areas. The opportunities of growth and
prosperity have been increasing because travel and tourism industry has been delivering
complete set of tourism services. In such respect, it has been identified that TUI Group has
developed integration with diverse service entities (who can strengthen the amenities of traveling
services). Thus, hotel Foundation is also focusing on integration aspects so that to expand and
diversify the services in different market places (Smith and Puczkó, 2014). The categories of
integration is split into two types like as horizontal and vertical and both the integration
generates opportunities of growth and prosperity. Vertical integration works basically on
delivering prominent services so that business can expand its services in different market places.
However, horizontal integration is all about encouraging market potential of the entity through
strategic alliances and procedures. The chief aim behind integration is to ensure that hotel
Foundation is engaged in appropriate services according to the preferences of clients.
Hence, for the purpose of promoting services to wider market places, hotel Foundation is
emphasizing on horizontal integration in which chief emphasis is given mergers and acquisitions.
To operate the business properly, TUI Group communicates with several business entities who
can deliver support in strategic processes; hence support can be categorized in the area of
investment and other resources (Sigala, Christou and Gretzel, 2012). Instead of involving many
entities, major work is performed by TUI Group only because the authority is confined to single
entity only. Foundation hotel is expanding in different areas because of horizontal integration and
also because of engaging many tour operators in the same field. Tour operator works with TUI
Group and this also assists hotel Foundation to increase the level of demand. The management is
engaged in conducting all the activities and operations in effective manner and associated tour
operators merely manage a few services in the same area.
Regarding this, the entities are also emphasizing on interest of stakeholders especially for
the purpose of retaining them. For instance- Integration depicts that one entity is managing its
services with the help of other entity. Under integration, different services are required to be
included in the provision so that client satisfaction can be attained on higher extent. Integration
also results in enhancing the popularity of service entity (Ryan, Horton-Tognazzini and Williams,
2016). With the help of integrated processes, supply chain of the hotel is also improving and as a
result the business entity is able to meet demand aspects. Supply chain procedure of the hotel
needs to be effective so that better services can be delivered to the clients. With the help of
vertical integration, hotel Foundation is accentuating on all the stakeholders; thus all their needs
are met accordingly.
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It has been observed that integration processes are increasing in hospitality industry
because the subsequent entity is engaged in delivering wide range of services to the clients. For
instance, British Airways is engaged in delivering airline services to the clients and there in the
flights, food services are also delivered which comes from Emirates catering. This shows that
various services are integrated to each other and which also aids in meeting the needs of clients.
All the associated entities in hospitality sector are working with each other; thus this also aids
them to acquire customer satisfaction on higher extent (Radojevic, Stanisic and Stanic, 2015).
Integrated work is more significant and effective which also aids in enhancing performance
aspects of the hotel. Hence, in terms of implications it can be said that integration is the only
aspect that helps in managing and controlling all the facets of hospitality industry. However, on
the other hand, business entities are also experiencing diversified challenges due to difference in
practices. Thus, it can be said that integration has optimistic and pessimistic both the impacts.
2.2 Discuss how integration has affected a hospitality business
There are various reasons for which practices of hospitality industry is improving and
among all such reasons, integration is the most significant reasons. In the present case, hotel
Foundation is integrated with several entities so as to deliver prominent services to the clients
and this also aids in enhancing effectiveness of the services (Osman, Johns and Lugosi, 2014).
Demand of hospitality services has been augmenting since the concerned entities are delivering
prominent services to the clients. Service packages of hotel Foundation have more demand
because TUI group and other tour operators are integrated with the service delivery. Clients are
satisfied because the accommodation services delivered by Foundation hotel are effective and
competitive. This is also useful in terms of encouraging customer loyalty. At the same time, such
customers also promote the services to other clients and as a result, it enhances demand aspect.
Besides the positive facets, integration transforms business scenario as well due to
involvement of different entities. When several business entities work together they control each
other’s work processes and as a consequence, it sometimes impacts business effectiveness and
performance (Mensah and Dei Mensah, 2013). Integration also leads the business entity to
emphasize more on internal and external environment. Along with this, focus should also be laid
on quality aspects so as to enhance customer base. Afterwards, integrating with different entities,
opportunities of growth and prosperity have been increased which also aids the subsequent hotel
to maximize the market share.
Considering this, integration has also augmented competition level; thus hotel Foundation
has to manage the services in effective manner. It has been observed that Foundation hotel is
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focusing more on branding and marketing practices so as to appeal the customers on higher
extent. Thus, merging with different business entities also changes business framework and along
with this, it assist in acquiring competitive advantage (Manono, Kieti and Momanyi, 2013).
Nonetheless, integration also accelerates the level of productivity which augments the client
base. Economy of scale is another benefit that can be acquired through vertical and horizontal
integration. The scope of profitability is more because service capability is changing due to
involvement of different entities. Merging with diverse business entities amends the standard of
the services; thus strategically it is more important for hotel Foundation.
TASK 3: BE ABLE TO PLAN THE DEVELOPMENT OF HOSPITALITY
BUSINESSES
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target market
Apparently, hotels of UK have been operating in competitive scenario; thus in order to
retain the position, it is required for hotel Fountain to accentuate on innovative and creative
practices. When Fountain hotel merges with any other business, duties and responsibilities
transforms; however on the contrary, it also assist in meeting all the needs of clients. As per the
present scenario, hotel Fountain can merge with TUI Group so as to deliver all types of services
to the clients. Merger can be taken place in the subsequent hotel because TUI Group has wide
range of services which also appeals clients of hotel Foundation.
The brand image of the Fountain hotel could increase in future; therefore integration with
TUI Group can assist the hotel to augment the customer segment. In order to serve hospitality
services to large number of customers, hotel Foundation has to integrate with TUI Group
(Maggioni, Marcoz and Mauri, 2014). This will also assist in offering quality and better services
to the clients. In the below mentioned section, several innovative provisions are discussed that
should be aligned with services of hotel Foundation. All such aspects will also assist the hotel to
satisfy the needs of clients in changing business scenario.
Changes Description
Transformations related to technological
aspects
There should be more changes related to
technological aspects so as to enhance the
service efficacy. This is also useful in terms of
encouraging more clients towards hospitality
services of hotel Foundation. Technology is
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perhaps the most vital aspects through which
value of hospitality services can be encouraged
(Leung, Law, Van Hoof and Buhalis, 2013).
Hence, considering this, hotel Foundation
should make use of technological aspects on
higher extent so that innovative and creative
services can be introduced for the clients. For
instance – amenities like Wi-Fi services can be
delivered to the clients for the chief purpose of
retaining them. This is also useful in terms of
appealing more clients towards hospitality
services of hotel Foundation.
Expansion in different areas It is suggested to hotel Foundation to expand in
new emerging markets so that customer base
can be enhanced. This can also assist hotel
Foundation to acquire more attention from the
clients (Lee, Dopson and Ko, 2016). The hotel
entity has to expand the services so that
customer satisfaction can be encouraged and
this can also augment profitability aspects of
the hotel. This could also enhance the reach of
customers; hence accordingly better services
could be delivered to the clients. Issues related
to service provision could be reduced in the
same domain; therefore as a result it can
maximize the potential of business.
Changes should be made in human resources Apparently, human resources of the hotel
manage all the services; therefore it is vital for
the subsequent hotel to accentuate on human
practices and operations. Human resources of
hotel Foundation are accountable to interact
directly with the customers; therefore they
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must communicate with them consistently in
effectual manner (Law and et.al., 2015). There
should be more development provisions for
human resource management since they are
engaged in delivering direct hospitality
services to the clients. Employees are also
required to attend training and development
sessions so that they can contribute more in
success and prosperity aspects. This can also
help the customers to get quality services from
the respective entity.
Since hotel Foundation is emphasizing on integration aspects; therefore the employees
must have to make sure that they have proper knowledge about services of TUI Group. In many
cases, it has been observed that after mergers and acquisitions, profitability aspects get affected
because of wider transformations. Hence, in such respect, merger with TUI Group can assist
hotel Foundation to expand the services in diverse areas. Therefore, from the discussion, it is
evident that transformations will lead to several alternatives in the business and as a result,
employees will have to put more efforts in their skills and capabilities. Hence, from the
discussion it can be said that human resources as well as other resources should have to enhance
the level of efforts so that prominent services could be delivered to the clients (Lam and
McKercher, 2013). Changes should also be made to recruitment and selection procedure so that
better amenities can be delivered to the clients. However, on the other hand this could also assist
the hotel to serve quality amenities to the respective clients.
3.2 Develop a plan for a hospitality business including the operational requirements of the
business organizational structure in relation to human resource allocation
In order to enhance the effectiveness of services, it is essential for hotel Foundation to
facilitate several improvements as that will also accelerate business efficacy level (Kusluvan,
Kusluvan, Ilhan and Buyruk, 2010). While planning for changes, the subsequent hotel must have
to make sure that they are managing all the service aspects in systematic manner; henceforth
following aspects should be considered into account:
Stage 1: Development Concept: It is an apparent fact that prior introducing any new service at the market place,
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hotel Foundation has to emphasize on developing suitable concept so that adequate
services could be delivered. In the state of concept, the business entity has to make sure
that transformations are feasible and are necessary for the hospitality services. For
mergers and acquisitions, there should be clear scenario and objectives should be framed
accordingly. Market research: Market research is essential in each and every stage; thus hotel
Foundation has to accentuate on market research (Jayawardena and et.al., 2013).
Through this, feasibility of the concept can also be ascertained. With the help of suitable
market research, information about external environment can also be derived; therefore
this could assist the business entity to conduct all the operations in effectual manner. Target market: Target market should be specified so that focus can only be made on
respective targeted people. With the help of proper targeting strategies, profitability of
the business can also be enhanced. Further, this could also assist the hotel entity to
change business scenario as per market requirements. Location: Specific location should be determined so that customers can derive services
from the respective places. In terms of implementing new plan, hotel Foundation must
accentuate on proper location (Harrington and et.al., 2014). Scale of operations: The level of operations will be increased due to mergers and new
business plan; thus human resources should be recruited according to the requirements. Funding: It is also vital for hotel Foundation to manage financial aspects in adequate
manner. This can also encourage investment capacity of the business and along with that;
the process of funding can also be managed in adequate manner. Services: In order to persuade more customers, hotel Foundation has to amend types of
services. Henceforth, for such aspect discounts and schemes could also be delivered to
the clients. Probably, this will encourage the ratio of business sales (Ip, Law and Lee,
2011).
 Quality aspects: Hotel Foundation has to emphasize on quality aspects so that clients can
be retained for longer period. Therefore, at stage 1, all the aspects related to service and
product development should be considered.
Stage 2: Design
 The hotel (Foundation) has to emphasize on ambiance so that proper structure could be
given to the new business project (Hay, 2016). This is essential under designing element.
 Proper culture should be developed in the business so that employees can perform their
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