Hospitality Provision, Integration, and Impact on Travel & Tourism

This report provides a detailed analysis of hospitality provision within the travel and tourism sector, exploring the interrelationships between hospitality and broader travel and tourism businesses, including aviation, business travel, and theme parks. It examines the implications of horizontal and vertical integration on the hospitality industry, discussing how integration affects hospitality businesses with both positive impacts like improved business operations and increased customer satisfaction, and negative impacts such as high costs and potential rigidity. The report references real-world examples of takeovers and mergers, such as Starwood Hotels and Resorts by Marriott International, to illustrate the effects of integration on market control, cost reduction, and competitive advantage. Ultimately, the report emphasizes the importance of quality hospitality services in enhancing the overall travel and tourism experience and contributing to economic growth, highlighting the need for businesses to carefully consider the potential benefits and challenges of integration strategies.

Hospitality Provision in Travel and Tourism Sector
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Table of Contents
Introduction......................................................................................................................................2
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................6
Task 3...............................................................................................................................................9
Conclusion.....................................................................................................................................16
Reference list.................................................................................................................................17
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Introduction
Organizations in the hospitality sector carry business activities in order to provide quality
services to its targeted customers. The hospitality business plays an important role in
development of the business operations of travel and tourism. The functions of the hospitality
sector are interrelated to that of the entire travel and tourism sector. The following assignment
makes a proper analysis of the effects of the different types of integration to the hospitality
industry. The task will introduce projected business plan for proper evaluation of the structure of
the organization as well as the allocation of human resource in the hospitality industry.
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Task 1
1.1 Discuss the interrelationships between hospitality and wider travel and tourism
businesses
The hospitality business involves effective
provision of services to its customers in
many forms. The hospitality business is
aimed at satisfying the customers to a
significant level, increase customer value by
providing them with quality services at an
affordable rate. Hospitality business is
carried out in various sectors such as in the
sector of health and social care as well as in
the travel and tourism sector. The health and
social care sector engages hospitals, nursing
homes for carrying out its business whereas
the travel and tourism sector involves hotels,
resorts, etc. for carrying out the its business.
The business of hospitality as well as the
business in travel and tourism sector is
interrelated.
In travel and tourism sector, the hospitality
business is very necessary because the
organizations under the travel and tourism
sector will be able to gain competitive
advantage by the help of provision of
effective services to its customers. The
hospitality business strengthens the
businesses involved in the travel and tourism
sector such as the aviation, business travel,
theme parks, exhibitions and conferences
and many more. The explanation of the
different types of elements used in the travel
and tourism is as follows:
Aviation
The airline services form one of the most
important elements in the development of
travel and tourism industry. Customers visit
different countries by the help of flights
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whose business are operated by the airline
industry. Quality of the hospitality services
provided by the airline industry such as
healthy food and beverage and the proper
seating arrangements and services provided
by effective employees in the airline
industry will enable the travel and tourism
sector (Arena et al., 2015). Similarly, the
hospitality business is very dependent on the
travel and tourism of various types such as
aviation and for provision of its services.
The business of hospitality sector can be
able to flourish only when there will be
more customers coming to avail the services
provided by the travel and tourism sector.
The organization in the travel and tourism
sector as well as the hospitality business
have developed their business and
contributed to the nation’s economic growth
and development. Lack of provision of
quality hospitality services can disrupt the
business operations by reducing the
customers’ satisfaction.
PKF hotelexperts can provide
recommendations to the hospitality and
travel and tourism sector so that they can be
able to effectively anticipate and resolve
their issues and in order to gain more
customers base by involving quality services
in its hotel.
Business travel
The business customers, availing facilities
provided by the travel and tourism sector
carry different needs and expectations of
getting the services connected to goods food
and beverage, luxurious accommodation and
the that are offered by the different
restaurants, bars and many more. The
hospitality industry involves the restaurants
and bars and others. Lack of quality in the
services provided by the travel and tourism
sector can disrupt its business operations.
Every organization in the travel and tourism
sector contains bars, restaurants that provide
remarkable services to the customers, help
in the development in business operations in
travel and tourism industry (Davis et al.,
2018). The customers of travel and tourism
sector get effective services from the
recreation faculties provided by the
hospitality industry. By providing effective
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hospitality services to the customers coming
to avail the facilities of the organization, the
organizations in the travel and tourism
industry can increase its profitability of the
organization, increase customers value by
providing the better services at a reasonable
rate. Without better hospitality services the
travel and tourism organization cannot
flourish its business.
PKF hotelsexperts can provides advice to
the different organizations in the travel and
tourism sector and the hospitality sector
increase the demand of the customers by
providing with quality services of food and
beverage, luxurious accommodation at its
hotel as well as the recreation facilities
introduced by the hospitality organization.
Theme parks
The customers arrive to visit the theme
parks and avail the services provided by the
hospitality organization and the
organizations operating under the travel and
tourism sector. The travel and tourism
business provides them with effective
services related to accommodation, quality
food and beverages at the restaurants and
bars contained in the organization. By
providing effective hospitality services to
the customers coming to avail the facilities
of the organization, the organizations in the
travel and tourism industry can increase its
profitability of the organization, increase
customers value by providing the better
services at a reasonable rate (Lopes, 2016).
Without better hospitality services the travel
and tourism organization cannot flourish its
business.
PKF hotelsexperts can recommend the
hotels can be able to attract its customers by
the help of effective hospitality services
such as healthy food and beverage in its
restaurants, bars, and other recreation
facilities provided by its organization to its
customers. Hospitality business plays an
important role in development business in
the travel and tourism sector.
Both the hospitality industry as well as the
travel and tourism industry has contributed
to the economic growth and development in
different countries (Horner, 2016). The
services involved in the hospitality industry
are provided by the travel and tourism
industry the customers coming to the visit
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the places of interest avail the hospitality
services provided by the travel and tourism
sector. Both the industries are required to
provide effective services to the customers
in order to develop its business and both are
aimed to provide effective services to
improve its business operations. The quality
services provided in the travel and tourism
sector and the hospitality sector increases
customers’ satisfaction as well as the help to
gain a competitive advantage in the
respective industries.
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Task 2
2.1 Analyze the implications of integration to the hospitality industry
There are two types of integration that plays an important role in improvement of business
operations in the hospitality industry.
Horizontal integration
Horizontal integration is defined as a procedure in which an organization can enhance the
manufacture of its products and services to the in the same supply chain level (Christopher,
2016). In simple words, when an organization acquires or merges with other organization having
dealing same kind of business, it can be known as a horizontal integration.
The horizontal integration has several positive implications on the hospitality industry. The
organization can exercise significant control on the market and there will be improvement in the
globalization of the hospitality business. It will improve the customers’ satisfaction by collective
sale of goods and services of increased quality products and services (Migdal, 2018). There will
be significant reduction in the cost involved in business organizations can be able to improve the
profitability and gain a competitive advantage in the industry.
Vertical integration
Vertical integration is defined as the process by which an organization owns a supply chain. For
example, an organization has started producing goods and services along with marketing of those
products. For example, Hitachi Ltd has started manufacturing the compressors installed in the air
conditioners instead of buying the compressors from other suppliers.
Vertical integration increases customers’ value and also helps the organization improve its
business by reducing the cost involved in carrying out business activities (Kotler, 2015). Vertical
integration helps the business to increase customers’ satisfaction because improved quality
products are provided at reasonable cost.
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As per the given scenario, there has been certain takeover and mergers of the different hospitality
organizations. “Starwood Hotels has taken over Resorts by Marriot International 12, 2 billion US$,
was considered as the largest takeover in the hospitality industry since 2007”. After that Blackstone
took over Hilton at the monetary value of 26 Billion US$. Gradually after the time passed there has
been more takeover between hospitality industries as horizontal integration. It improved the
customers’ satisfaction by collective sale of goods and services of increased quality products and
services. It led to significant reduction in the cost involved in business organizations is able to
improve the profitability and gain a competitive advantage in the industry.
2.2 Discuss how integration has affected a hospitality business
Organizations adopt different integration methods in order to improve the business activities
performed in an industry. The horizontal as well as the vertical integration provides advantages
to the business operations. The different ways of integration can be able to assess the pessimistic
as well as optimistic effects of integration keeping in view the results generated from the
procedure of integration. The Integration creates a significant impact on the hospitality business.
The PKF hotels and experts could evaluate the condition for a specific inn and provide them with
advises of better procedure of integration so that the company can be able to effectively carry the
integration methods for better improvement in their business operations. As per the scenario
there are different positive effects of integration that has taken place in the integration of
Marriott international, explained as follows:
 The business operations of the company will be improved
 The quality of the services provided to the customers can increase
 The integration will help the company to improve its profitability gain competitive
advantage in the hospitality industry (Nagle, 2017)
 Vertical integration will help the organization to exercises significant control over the
market by enjoying significant market share (Hill et al., 2014)
 There will be remarkable improve in the business standard of the company
 The organization can be able to reduce its cost and maximize its profits by the help of
provision of better services to the customers
 The opportunities of globalization of business will increase
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 Integration can help the company to adopt innovative ideas for carrying out its business
and improving it that can help the organization to face a healthy competition with its
business competitors
 It can increase its brand worth by integrating with the different business
There are several negative impacts that are identified in the analysis of the integration that can
disrupt the business operations of the hotels. It is explained as follows:
The acquisitions and mergers requires huge involvement of cost that can exercise an adverse
impact on the financial performance of the company (Cartwright, 2014)
 The vertical integration can reduce healthy rivalry
 A significant amount of time is required in carrying the process of integration by the
organization
 Integration increases rigidity
 Integration can create a negative impact on the brand image
 The organization going to carry out the activities of mergers can face several challenges
for compliance of different rules and regulations in relation to the business acquisitions
and mergers
 Lack of effective compliance of the different rules and regulations in relation to the
business acquisitions and mergers can create a negative impact on the business image as
well as the performance
 The merger and acquisition can bring modification in the management and operations of
the business, which acts as a challenge for the organization going for integration and its
can leads to disruptions in the business operations of the organization (Reason, 2016)
As per the given scenario, there has been certain takeover and mergers of the different hospitality
organizations. “Starwood Hotels has taken over Resorts by Marriot International 12, 2 billion US$,
was considered as the largest takeover in the hospitality industry since 2007”. This integration has
also faced the impacts mentioned above.
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Task 3
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
market.
This part of the assignment will be connecting to the development of a preparation and
constructing a rationale to attain the range of target consumers. For this part of the study, the
restaurant and dining sector will be taken into account. The type of restaurant will be a multi-
cuisine vegan restaurant as these types of restaurant has huge demand in the market.
Stage 1 - Development:
Concept
The people of the western countries are becoming health conscious and more and more people
are not having any unhealthy foods or the foods that have a very high calorie value. This is the
cause of the rising cases of obesity and vast range of sicknesses that are caused due to these
foods. Some sicknesses like cholesterol, cancer, and ulcers are a cause of unhealthy foods. In the
recent years, the public of UK are more and more inclined to foods that are very much healthy
and calorie free. However, the demands cannot be met by most of the restaurants, as these
restaurants could not provide the customers with a vast range of foods (Weinreich, 2016). A
multi-cuisine vegan restaurant can be a flourishing business as it provides the public with a
vegan food that is healthy and that too with vast number of recipes from all over the world.
Moreover, people of some countries like UK and US have taken steps to restrict the killing of
animals for food. Consequently, this type of business can flourish in these countries. The
objectives of the business are to target the customers that are generally health conscious and are
vegan. It also aim for attaining a huge customer base and make people aware of the quality of
vegan food and the vast quantities of recipes that are available from all over the world (Paley,
2017). Moreover, the business has the aim to use the natural resources sustainably so that the
future generations are provided for these resources. The business envisions the world to be
healthy, green and enjoy a comfortable lifestyle.
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Market research
Market research is very important for the recognition of the potential customer base and the way
in which the business is to expand in the future. It will also help to understand whether the
products that are be provided by the restaurant, will satisfy the needs of the people and whether
these products can increase additional demand in the future. The research that will be conducted
must be a primary research so that the business can understand the potential demand of the
products and service that the business is to offer the customers. The business must conduct a
survey that would include a large number of people and these people are to be chosen randomly,
so that there is an exact image of the future market (De Brentani, 2017). The questions must be
set in such a way that it covers the following topics for the research: the age of the customers, the
type of food that are preferable, the cuisine that is preferable, the price of the products, after sale
services and online deliveries. Thus, the business must understand the demographic age, the type
of food to be produced and the price of the products for determining the products that are to be
offered to the public.
Target market
It is probable that the business will gain a huge demand in the future markets and it is very
important for the business to attain a huge customer base. The products and services that are to
be offered to the public must be designed according to the needs and requirements of the public.
Thus, the business must choose several factors that would help in the design of the products. In
addition, the business must take in consideration the amount of customers that are to be served in
the future and the ways that can be used to reach these customers. The first determinant that the
business must take is the age and gender of the customers (Van de Ven et al., 2012). Changes in
gender will not affect the demand of the customers but the age can be a factor that can affect the
demand. The public between the ages of 18-30 are the people who are more concerned about the
health and the restaurant must be implementing such policies that it attracts more of such
customers and increase the productivity. The second determinant is the geographic location.
Most of the business has started their business online and this has helped them to attract
customers from a long area. The restaurant must also start their business online so that they can
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