Impact of Integration on Hospitality Business in Tourism Sector

This report investigates the crucial role of the hospitality industry within the travel and tourism sector, highlighting the interrelationships between hospitality businesses and the broader tourism landscape. It uses PKF Hotel experts as an example to illustrate these dynamics. The report also analyzes the impact of integration, particularly focusing on Marriott International's integration with Starwood Hotels and Resorts, and discusses the implications of vertical and horizontal integration on the hospitality business, including effects on competition, market share, and service quality. The study emphasizes the importance of adapting to technological advancements and customer preferences to enhance service delivery and maintain a competitive edge in the combined hospitality and travel sectors, advocating for strategic planning and skilled employee management to ensure customer satisfaction and business growth. Desklib is a valuable platform providing students with access to past papers and solved assignments.

Hospitality Provision in Travel and
Tourism Sector
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Introduction
With the undertaking of this assignment, it would be introduced that the hospitality industry is
one of the most leading industry in current time. This assignment helps to investigate the
hospitality sector in the context of travel and tourism sector. This assignment helps to understand
the role of the hospitality industry in travel and tourism sector. Hospitality sector plays an
important role in the success of the travel and tourism sector. This assignment also explains the
interrelationship between the hospitality industry and wider travel and tourism industry. The aim
of this assignment is to provide the better understanding regarding the various business plans
which are beneficial for both the hospitality and for the tourism industry. This work also helps in
analyzing the integration which implied in hospitality business organization. This assignment is
going to provide the overview of business plans which affects the decision regarding the business
strategies and development of the business organization. After completion of this assignment,
one should get the better understanding and good knowledge of the operational work of both
hospitality and travel and tourism sector.
(Figure – Travel and Tourism Sector)
(Source – Htcampus, 2017)
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Task 1
LO1 Understand the role of the hospitality industry within the travel and tourism sector.
1.1 Discuss the interrelationships between hospitality and wider travel and tourism
businesses.
Interrelationships between hospitality and wider travel and tourism business.
May 01, 2018
Introduction
Hospitality sector plays an important role in the growth of the travel and tourism industry. In
travel and tourism industry most of the services provided by the hospitality sector. Facilities and
services of hospitality sector are accommodation, transportation, food facilities, and various
other services to the customers of travel and tourism sector. Tourism sector can be defined as the
various travel packages to the different locations and many other services related to the travel
and tourism sector (Gibson, 2017). Both these industries work parallel to each other as
hospitality industry provides different service to the travel sector and travel and tourism industry
provides different traveling services to people. As the consultant of PKF Hotel experts, this
article discusses the interrelationship between the hospitality industry within the travel and
tourism sector.
1.1Discuss the interrelationships between hospitality and wider travel and tourism
businesses.
Travel can be defined as travel done by different people due to some different purposes and for
various other motives. Travel may take place for the educational purpose, for leisure and for the
entertainment (Lee, 2018). The hospitality sector is described as the work of welcoming of
guests and provide them different services to them along with this satisfy their needs and
requirements of the customers. The hospitality sector is basically divided into two areas- one is
entertainment area and another one is accommodations. The entertainment area includes bars,
clubs whereas accommodation includes resorts, public houses hotels, and hostels.
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(Figure – Hospitality in Travel and Tourism Sector)
(Source – By Author, 2018)
Travel and tourism company is the company which builds his great image all over the world. The
travel and tourism sector has the lots of numbers of different fields, hospitality is one of the best
fields of the travel and tourism sector (Gibson, 2017). Hospitality simply means to provide the
different services to the people who travel and also provide them safe and enjoyable environment
while traveling. Here are some factors which easily explain the interrelationship between the
travel and hospitality sector.
(Figure – PKF Hotel experts)
(Source – By Author, 2018)
A PKF Hotel expert is one of the best examples of the hospitality industry. The main aim of this
hotel is to satisfy its customers and provides them those services which are demanded by them.
The PKF hotel provides services as per the expectations and different standards are set to provide
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the best services to its customer (Lee, 2018). This organization provides the services to the
customers and through this, they build their image in the eye of the customers.
(Figure – Relationship Between Travel and Hospitality Sector)
(Source – By Author, 2018)
The above figure shows the various activities of travel and tourism and of the hospitality sector.
There are the various hospitality services which have been provided to the travel and tourism
sector’s customers. For providing better services PKF hotel needs to hire the skilled and
qualified employees for their organization. In current time people use the new and developed
technology so for this organization needs to maintain their webpage and provide all the
information’s on that webpage. The people who travel to different places first analyze the
various sites and after that plan their trip (İlkan, ed.al. 2017). The best advantage of webpage this
increases the competitive advantages for the business organization. Hospitality is the industry
which needs to take care of all the things related to the services and the facilities provided by
them. Basically, the hotel is known for the room facilities but as collaborate with the tourism
sector them needs to provide the high quality of food to their customers.
In the modern era, people book their trip and do online booking for hotels and room facility.
When services describe on the web pages are matches with the actual services then this increases
the chances of attracting more and more customers (Ram, 2018). For the development and
proper working of the hotel, organization managers need to be updated with the different
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technology and new methods of working. Both hospitality and travel industry needs to plan as
per the requirements and demand of the customers. Different tourist prefer different plans, some
prefer breakfast whereas some prefer high tea (Lee, 2018). Basically, industries are requiring
planning various plans and providing different services to their clients.
As tourism and hospitality sectors are combined with each other so they need to serve all the
services in the best manner so tourist appreciates their services and become the loyal customers
of the organization. In travel and tourism sector holiday packages are important as there are
different packages are made with the different price tag. As there are lots of packages available
in the market visitors compare all those packages and after that decision is made. Employees
who provide all these services to the client of the respected organization play a significant role in
that sector (Vanhove, 2018). Different service providers are the tour operator, travel agent, trip
planner, manager of the organization, waiter and all the employees of these organizations.
The hospitality industry is very vast, it serves as both tourist or non – tourist organizations. For
proper working in the hospitality industry, one must receive all the legal formalities. The law and
legislation of hospitality industry include all the legal issues related to the duty of the employees,
responsibilities towards guests and all the licenses of food safety, restaurant facility, and
employees laws.
Conclusion
With the help of this task, the discussion is done on the relationship of hospitality sector with the
travel and tourism sector. Both these services are coming from each other and promote one
others facilities. Hospitality is the sector which is widely based on the travel and tourism sector.
Both the sectors help each other for growth and development of their respective business
organization (İlkan, ed.al. 2017). For continuous development of both these countries, it is
required to move with each other and help in their business organization.
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Task 2
LO2 Understand the impact of integration on the hospitality industry
Executive summary
Marriot international is a hospitality sector organization which provides the hotel facilities to its
customers. This management report helps to cover the impact of integration on the hospitality
industry. This report helps to analysis that how integration affected the hospitality business.
Introduction
Integration means the combination of two or more business organization with the sharing of
their customers and the resources for optimum utilization of resources and for increasing the
profit of the business organization (Silvia, 2018).It can easily understand the grouping and work
together with different horizontal and vertical business organizations.
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2.1 Analyse the implications of integration to the hospitality industry.
Integration simply means the combination of two horizontal and vertical organizations for
making the extra profit or increasing the total income of the organization. In this report, the study
is done on the integration of Marriot International with Starwood Hotels and resorts. Marriot
International is an international hotel; it takes over the business of the Starwood hotel and resort.
This increases the business of the Marriot International. Integrations help to the establishment of
the one or more of the departments of the organization. Marriot International is one which uses
different methods for the integration and provides better services to its customers.
(Figure – Marriott international)
(Source – Hotel Designs, 2017)
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Integration can be defined as the concept of the economics which helps in maintaining the link
between the organization and other business organization. Integration can be done with same
nature of the business organization or with the different level of the organizations. With the
integration operating cost of the organization reduces and both organizations shares their
resources and customers with each other (Silvia, 2018). Integration helps the business
organization to promote their business and increase the income of the organization.
(Figure - Integration)
(Source – McGannon, 2015)
Type of integration means collaborates with the same kind of business or with the several stages
of different business organization. Integration helps the business in the increase their market
share and also increases their global presence in the market (Niefer, 2018). There is two type of
integration that is vertical and other one is horizontal.
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Vertical integration –
Vertical integration is the process which merger is done with the similar business chain
organization. With the integration of two different business organization, this reduces the
chances of the new entry in that industry (Anderson, 2018). When integration takes place no new
company will enter the market and it reduces the chances of competition. In Marriot
International, this hotel did their vertical integration with the hotel, this integration helps the
customers also. Integration helps the hotels to maintain their value and reputation in the market.
Vertical integration can be done forward and backward. Integration plays a major role in the
market.
Impact of vertical integration
Vertical integration helps to improve the quality of the products and it also increases the global
brand of the hospitality business. As integration exists it increases the chances of removing the
small business organization and it also increases the monopoly of that business organization.
Horizontal integration
Horizontal organization means the collaboration of two different business organizations. Two
organizations combine their work so to achieve the customer satisfaction and provide better
services to them (Niefer, 2018). Horizontal integration helps the business to expand its customer
service and increase the distribution chain.
Impact of the horizontal integration
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Vertical Integration
Horizontal Integration

One most negative impact of horizontal integration is it reduces the small business, this happens
due to the merger of two organizations in one big organization. This integration helps both the
hospitality and travel and tourism sector to join their hands for the benefit of the organization as
well as for the country.
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2.2 Discuss how integration has affected a hospitality business
Integration increases the competitive environment in the market. It is the benefit for the business
organization when they come in the integration with other business organization. Combination of
two businesses helps to attract and satisfy the more customers (Shankar, 2017). This also impacts
the economy of the organization, this will help in reducing the operating cost of the organization
and helps in providing the better services to its customers. Integration will provide the
advantages to both the hospitality sector and travel and tourism sector. With the help of the
integration, organization develops their monopoly in the market and grabs the various new
opportunities developed for that particular business industry.
Monopoly creates the dominated nature of the business organization which helps the
organization to increase their profit with the same resources (Anderson, 2018). In this
assignment, integration is done within the hospitality sector with the travel and tourism sector.
Both these industry are continues growing organizations. After integration with the Starwood
hotel and restaurant with the Marriott International, a hotel would increase their customers; some
additional customers are adding to the business organization. Integration also helps in the
diversification of the business to other countries.
Impact of integration can easily notice in the hospitality sector. Integration provides the new
services and the many other facilities and the programmes to the business organization. Merger
and integration has both positive and negative impact on the hospitality sector, and those impacts
are -
Impact of the integration in the hospitality industry
Positive impact Negative impact
 Integration provides the more job
opportunities to the public.
 This helps in providing quality and
superior product and services.
 Integration is helpful in the economic
development of the organization as well
 Integration in the causes for the
destruction of the small business.
 It increases the cost to the business
organization.
 Integration reduces the competition in
the market.
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