Hospitality Provision in Travel & Tourism Sector: An Analysis

This report provides a comprehensive overview of the hospitality industry's role within the travel and tourism sector. It begins by defining hospitality and outlining key services such as food and beverage, spa packages, and cruise lines. The report then explores the structure of the international hospitality industry, with a specific focus on the UK, including hotel classifications based on size, star category, and location. The report further examines the interrelationship between hospitality and travel and tourism, highlighting the primary hospitality providers. The second part of the report focuses on integration within the hospitality industry, including horizontal and vertical integration strategies, with examples from the Marriott hotel. The report discusses the impact of integration on business operations, competition, and customer satisfaction. The report concludes with a discussion on the importance of adapting to the current business scenario and using technology for better customer service.

Hospitality Provision in
Travel & Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
1.1...........................................................................................................................................3
TASK2.............................................................................................................................................7
2.1...........................................................................................................................................7
2.2...........................................................................................................................................9
TASK3...........................................................................................................................................10
3.1.........................................................................................................................................10
3.2.........................................................................................................................................11
CONCLUSION..............................................................................................................................15
REFERENCE.................................................................................................................................16

INTRODUCTION
The hospitality industry is the most important in present business scenario. This industry
is providing more alternatives for its customers and renders lodging and accommodation
facilities and apart from this it involves showing respect to their guest, giving them equal
treatment and identifying and meeting their needs when they are in hotel (Căruntu and Diţoiu,
2014). Organisation undertaken in this report is PKF Hotel experts which was founded in 1927
and deals in the field of hospitality, tourism and leisure consulting. This report will explain the
role of hospitality industry within the travel and tourism sector. It will provide understanding the
impact of integration within the hospitality industry. And later part of the report will focus on
developing plan of hospitality business.
TASK1
1.1
Hospitality is a broader and most crucial concept in present business scenario. It is an
economic activity which involves the provision of services and the organisation of short term
accommodation in the hotels, motels and other facilities. It establishes a strong relationship
between the host and guest in the industry. The hospitality industry is a wide abstraction of
businesses which renders services to customers (Jiang, Scott and Ding, 2015). It is emphasised
on the spirit of customers and supplying particular experiences for them. The hospitality industry
is differentiated because it relies to a great extent on discretionary financial gain and free period
of time. It is a very important concept in present global businesses because now a days, people
travel different places for the purposes of business, vacation and exploring the new ideas and
opportunities for which they need accommodation and various other facilities. PKF hotel expert
will put greater attention to the different kinds of services which must be provided to the
customer in the hospitality industry and they are discussed below :
 Food and beverages : Hospitality industry offers various style of cuisines in their
restaurants and beverages which inspires the customer to celebrate the special occasion in
the hotel to enjoy the variety of food and drinks.
 Spa packages : In present business world, every hospitality industry offers Spa services
to their customer. This is because when customer travels the long flight they needs
relaxation or also when the customer has send their maximum time on beach which has

caused them with tanning in skin and dry hair for which they uses the spa services of the
hotel.
 Cruise lines : Cruise ships are growing at a greater speed in the hospitality industry. It
provides services of cruise which are huge in size and renders luxurious facilities to the
customer. Sleeping cabin is one of the most crucial services of the cruise ship which also
offers fine dinning, snack bar, lounges, etc.
 Food services : The hospitality provides services of food which involves quick service
restaurants like quick meals or cafes, catering businesses which will provide banquet hall
and catering services to the customer.
 Travel and tourism : This occupies the wider space in the hospitality industry and
involves trains, buses, flights, cruise, etc. It involves the movement of the customer from
one place to another (Law and et. al., 2015). It is a very important industry because
people travel between the nations for various purposes like education, vacation,
businesses, etc.
 Entertainment services : Entertainment is an important part of travelling in existing
business scenario and every travelling is associated with fun and entertainment which
gives the pleasure of enjoying the journey to the customers. Some of the offerings of
entertainment services includes Marian, sports and gaming, night club, bars, etc.
Structure of international hospitality industry
The following is the structure of hospitality industry in UK :
 Hotels : They are the most crucial aspect of the UK hospitality industry. In UK there are
around 48000 hotels of numerous types and categories which includes more then 250,000
people in the operation and working (The Structure and Nature of the International
Hospitality Industry, 2019). Furthermore, UK has all types of hotels ranging from normal
to 3-7 star luxury hotels. For instance, Marriott hotel, Marriott, Holiday inn, etc.
 Restaurant : It is again an important concept and includes two types of restaurants
namely, take away and dining outlets. Apart from this it also involves coffee shops and
historic or ethnic restaurants. There are around 105,000 restaurants in UK and it has
employed more than 450,000 people in the working and operations of the restaurants
(The structure of hospitality, 2019).

 Pubs, clubs and bars : In present business scenario, it is the rapidly growing business
because the majority of the population spend their weekend in pubs, clubs and bars. In
UK, there are around 65000 pubs, clubs and bars are there which have the legal licences
as well to run the business (HOSPITALITY INDUSTRY: STRUCTURE STRATEGY AND
GLOBALIZATION, 2019).
Hotel classification
Hotels are the crucial elements of the hospitality services. They occupy the majority of
the share to the whole of the tourism experience through the standardisation of facilities and
services offered by them. They can be categorized on the various aspects such as :
 Size : It is concerned with the definite quantity or numbers of accommodation rooms in a
hotel. Small hotel will have smaller than or equal to 25 rooms, average hotel will have
rooms ranging from 26 to 99, above average hotel will have more than 100 rooms but
less than or equal to 299 rooms. And lastly big hotel will have 300 hotels.
 Star category : The hotels occupy the star category when they get an approval by the
committee of accommodations which is known as Hotels and restaurants approval and
classification committee (HRACC). It can extent from 1- 5 stars and above that will be
referred to as five star deluxe and five star super deluxe.
 Location : Its is the place where the hotel is physically located. If it is located in city or
down town than the hotel is located at the most prestigious location and offers
convenience to the customer of market, railways, etc. They tend to be quiet expensive
because of their location. Sub urban hotels are located in the suburb areas of the city.
These hotels are priced averagely neither too high and nor too low and are generally
available in small, medium and large sizes (Litvin, Goldsmith and Pan, 2018). They are
given priority by those tourist who want to stay in peaceful areas, away from the city and
have low budget. Hotel which are located near the airports are referred to as airport hotels
and offers wide range of services to the customers. It is taken into consideration by the
over night travellers, cancelled flight customers, business clients, etc. Motels are kind of
hotels which are located away from the city areas, in highway sides. They are used by
those people who does not want to travel at night and are generally small in size. Resort
hotels are located away from the city areas like hills, beach sides, island, etc. and

occupies wider area. It provides ample of services to their clients and generally have high
prices.
Examples of food and beverage outlet
There are various food and beverage outlets like Coffee shops in the hotels or well known
Mc Donald provide customer not only with take away services but also dine in.
Hospitality in travel and tourism
Hospitality is entirely concerned with the facilities of food and beverage which involves
food, drinks, etc. Hospitality in travel and tourism further includes traveller, movement,
attractiveness and services and support fro the customers. Fundamentally,the main purpose of
travel agencies is to provide help and assistance to the customer who wants to travel and enjoy
the places and different destinations. The customer wants such services that they feel like home
and wants to return back. In present competitive business world, people wants extra ordinary
services.
Primary hospitality providers
As hospitality and tourism is one the big and quickly flourishing industry in which there
are numerous activities and services are involved. PKF Experts is the UK based consultant
agency that helps in rendering the various hospitality services (Minazzi, 2015). It has around 400
offices and operates in 150 countries. The company provides higher level of services and
technical expertises and helps the tourism industry by supplying the effective and efficient
services of automotive, construction, food and drinks, health care, hotel, tourism and leisure, etc.
PKF experts give advices and suggestion to the hospitality industry with the experiences which
they have earned through the hotel across globally. PKF hotel experts provide helps and assist
the hotel to cope up with the current business scenario, adopt new ways of doing businesses, use
of technology enabled equipments, treating customer fairly and nicely, rendering several other
services in hotel other than accommodation, planning the budget for new and innovative
services, etc. With the help of PKF, the current hotels are able to provide lodging, entertainment,
food, meditation, banquet, catering, etc. services to the customers. In fact some hotels are even
tied with the airlines and assures complete touring package to the customer, right from booking
the tickets and hotel till they leave the place.
Inter relationship between hospitality and travel and tourism industry

The relation between the two is that they work together in the organisation. This offers
products and services like conveyance, nutrient and drinks, accommodation while commercial
enterprise working in a tourism industry is a activity which is obsessed with attracting the
traveller in travelling where the tourist wants to know the activity relating to resting and
relaxation activities. Therefore, tourism is the integral part of hospitality industry.
Source : HOSPITALITY AND CATERING NEW. 2019
TASK2
2.1
Integration assist the hospitality industry such that it enhances the working of people
together by mutually exchanging their consumers and various other essential resources.
Hospitality industry negotiate integrating of resources by horizontal and vertical integration. Its
implication has been seen in Marriott hotel like organisation is working closely with various
resources and departments in order to make their customer happy and provide them with
effective satisfaction. Further more, they are devising the joint goals and objectives. They are
also using innovative and new instruments and technology for correct coordination. It is the
Illustration 1: HOSPITALITY AND CATERING NEW. 2019

strategy which is used by the companies in expanding its businesses which will be beneficial for
the Marriott hotel in minimising the cost and maximising the market share and profitability in
terms of revenue. Competition is exploding at a tremendous rate in each and every sector.
Organizations necessitates to be very cautious in supplying the service and in marketing any
offering to the final customers (Robinson, Ruhanen and Breakey, 2016). End users satisfaction is
very crucial because every organisation works for providing the required services to the
customers by assuring customer satisfaction. Competition also occurs related to the prices of the
products set by the Marriott hotel compared to its competitors. For this purpose, Marriott hotel
will need to closely work with identifying and analysing the prices and services provided by the
competitors and will have to cut down the net income margins to be at equality with the pricing
offered by its competitors. It considers getting businessperson to bring down the costs of raw
material and exploiting rivalry to gain the market share. There are two types of integration which
will be followed by the Marriott hotel and they are discussed below :
 Horizontal integration : This types of integration is concerned with the merger of one or
more companies who are operating at the same level in same field. For instance, one
hotel buying another one to both will work as one single unit. This kind of integration is
useful in maximising the market share of the company. For instance, the merger of
Marriott with AccorHotels are providing the opportunity for smaller competitors to come
together. The another example is Marriott 2016 acquisition of Star wood Hotels and
Resorts Worldwide in the hospitality industry. This also making it more thought
provoking for the middle brands to companies (Sigala and Gretzel, 2017). Thus, it is
rebuilding the industry and the way of doing business in the competitive world.
 Vertical integration : This type of integration is concerned with the expanding the
businesses into different areas. In this, the organisation buys or merges with another
company that is not operating on the similar level. In this, each individual deals in
producing different products and offerings which are combined together to satisfy the
customer needs.

Source : Horizontal vs Vertical Integration. 2019
2.2
Integration has a larger effect on the running of hospitality as well as travel and tourism
sector. It has successfully developed the things which are precisely simple and accessible for the
customers. In present business world, if client is required to create a program for some holiday
journey, they will required to not trouble themselves about devising the bookings for airway,
hotels etc. individually because travel and tour operators will do all the necessary things prior to
the journey and they will be accountable for planning the journey of the client (Stephenson,
2014). They will handle all the bookings right from the inception of the journey to the
conveyance till the stay and even about other recreational things. Preparation of tour package for
the comfort of the customer is possible only because of the integration which enhances all the
relevant individual entities to come together and work for the management. With the help of
precocious level of integration, the customer do not have to worry about the ticket and other
relevant documents of confirmation because it has been sent to the place of customer with the
help of courier services or E mail. Apart from this, the customer remain free from tension while
travelling into international country and for this purpose, they are even ready to pay extra amount
as well. A happy and satisfied customer is treated as an asset for the company as they contributes
Illustration 2: Horizontal vs Vertical Integration. 2019

immensely in the success of the organisation. This success is also incomplete without the good
and effective combination of vertical and horizontal integration.
The entry of information technology integration has brought an outstanding alteration and
modifications in the grounds of travel and tourism. The customers of Hilton experiences the ease
of booking all the tickets on the computer network and the payments can also be made with the
help of internet immediately (Verbauskiene and Griesiene, 2014). This has been very
advantageous for the customer as they do not have carry much amount with them which makes
them feel free and safe at the new place and additionally gives the benefit of enjoying the
journey with free mind. Apart from this, internet helps the customer in learning all the relevant
information like, services provided by the Hilton, images, views, surroundings, etc. which makes
them to decide quickly whether to book the hotel or search for another one and gives them
satisfaction as well. Customer can also give feedback or review about the experiences they had
which will useful for other customers in knowing about the hotel. There are various internet sites
that are particularly planned to get the responses from the customers so that the hotels and other
industries can bring in betterment in their services if necessitated.
The vertical integration has affected the hospitality industry by maximising the
profitability of the hotel when two hotels comes together who are at same stage and same
position in the industry. Furthermore, this gives them the advantages of strong brand awareness
which has encompassed in tapping more customers by providing them with diversified product
offerings. The horizontal integration has affected the hotel and tourism industry by merging two
companies which operates in same supply chain. This will affect the operation in the market by
minimising the competition. Furthermore, this provides larger market share by combining the
products, technology, services, etc.
TASK3
3.1
Travel and tourism is very crucial as more and more people are travelling every day for
different purposes. In this Report, the organization undertaken is a Niros restaurant which is a
newly commenced business in London and various elements and aspects required for developing
plan for new business are explained in detail.

Management of firm have made plans so as to moving into food and beverage business
because they have realised that business environment is highly dynamic and to cope up with the
increasing competition it becomes important to expand business and utilise the opportunities of
growth and advantages with the industry. Management evaluated that by maximising the income
and economic potential which is inspiring people to expend much more on foods and beverages.
Hence, organisation is planning to set a proper standard in their food and beverages for
accomplish the necessities of targetted users quest through offering unique taste to them.
In present business environment customer are more concerned about the quality of the
product rather than the price. Therefore, Hilton Restaurant will take into consideration this aspect
which will help to determine fix direct focus on rich and upper class individuals who are
spending their disposable income towards luxury life style. Hilton is considering upper middle
class to get much more advantages and market values with the up growing phase of industry.
London city has been taken for commencement of fresh venture because most of upper
class individuals and guests from different nations visit the city to spend their precious time. It is
offering products which will improve the taste and quality in its foods and beverages which will
leave the customer with best taste of food. For that, management of restaurant is encouraging the
business concern by using advertisements on social media and websites. Marketing strategy of
Hilton is to cover vast number of customers which is easy to utilize as restaurant is making use
of support programs and offering discount on products.
Apart from this, the marketing strategy of the Hilton restaurant will play an essential duty
to establish goodwill and suitable orientation in food industry. In order to take into account the
higher position, Hilton will use several form of conceptualization which can lead to much more
inflow of customers and their satisfactions. Organization is also concerned with offers which
provide more values and benefits compared to the competitors so that attention and interest of
the customer can be developed. Superior and enchanting services of Hilton restaurant will be
useful in transforming one time customer into regular or loyal ones. Organization will try to
leave the footmark of opinions in its customized and featured food and beverage services.
3.2
Hospitality business includes various activities and resources for its commencement. For
this purpose, Niros hotel considers the manpower resources as the most crucial and essential.

Furthermore, the plan of the business can be done by considering various aspects and they are
discussed below :
Stage 1 : Development : Every restaurant has a major concern relating to the satisfaction
of customer and growth of the business. Every organisation runs for serving customers at their
best specially in food and beverage industry where the primary source of earning is satisfaction
of customers. The Niros restaurant will also hire and assign the adequate human resources in the
restaurant.
 Market research : Customers are highly concerned about taste and quality of food. For
this, the Niros restaurant will hire highly professional and expert chefs who will have the
ability to serve customer quickly and effectively as customers do not prefer to wait while
eating.
 Location : The perfect location for the restaurant in UK which is chosen by the
organisation is opposite to the big Ben where large number of people visit everyday and
is the ultimate tourist destination as well.
 Target market : Every organisation has some target customers for whom they sell their
products and services. So for Niros restaurant the target people are upper middle class. It
generally targets corporate people and youth as well as the location is perfect for
spending time with friends and also soothing for making any business discussions
because it provides the most beautiful view and conversation can last for longer duration.
 Market size and funding : Its market size is large and is funding is done through
potential investors, loans from commercial banks.
 Products and services : It offers various product and services of food and beverages.
Apart from this it offers different varieties of food of other countries as well.
 Licensing : It has register itself with the government and legal laws which are required
for commencing a new business and other related licensing required for serving alcohol.
Stage 2: Design : It is concerned with the style and ambience which is done to attract the
customers towards the offerings of the company.
 Ambience : The Niros restaurant provides beautiful ambience with the calm and peaceful
surroundings. It is required to have very proper at the bar area. The Dance floor part
needs to be dark and properly enlightened. The dining area can have dark brown lighting
with intense ambience.