Hospitality Provisions in Travel and Tourism: Project Analysis

This report provides a comprehensive overview of hospitality provisions within the travel and tourism sector. It begins by discussing the interrelationships between the hospitality industry and the broader travel and tourism businesses, highlighting the dependency and customer satisfaction aspects. The report then analyzes the implications of integration in the hospitality industry, differentiating between vertical and horizontal integration, and examining the effects of integration on business operations using the example of Marriott International's acquisition of Starwood Hotels and Resorts. Finally, it develops a rationale for a selected hospitality project, justifying decisions linked to the target market, and presents a business plan including operational requirements and organizational structure in relation to human resource allocation. This business plan covers development, design, and operational stages, providing a detailed framework for establishing and managing a successful hospitality business.

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HOSPITALITY PROVISIONS IN TRAVEL AND TOURISM

Table of Contents
INTRODUCTION..........................................................................................................................2
TASK 1- ARTICLE.........................................................................................................................3
1.1 DISCUSS THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER TRAVEL AND
TOURISM BUSINESSES............................................................................................................3
TASK 2.........................................................................................................................................6
EXECUTIVE SUMMARY...........................................................................................................6
INTRODUCTION......................................................................................................................6
2.1 ANALYSE THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY INDUSTRY..........6
2.2 DISCUSS HOW INTEGRATION HAS AFFECTED A HOSPITALITY BUSINESS........................9
CONCLUSION........................................................................................................................11
TASK 3.......................................................................................................................................12
3.1 DEVELOP A RATIONALE FOR A SELECTED PROJECT CLEARLY JUSTIFYING DECISIONS
LINKED TO TARGET MARKET................................................................................................12
STAGE 1 – DEVELOPMENT...............................................................................................12
3.2 DEVELOP A PLAN FOR A HOSPITALITY BUSINESS INCLUDING THE OPERATIONAL
REQUIREMENTS OF THE BUSINESS’ ORGANISATIONAL STRUCTURE IN RELATION TO
HUMAN RESOURCE ALLOCATION........................................................................................14
STAGE 2 – DESIGN............................................................................................................14
STAGE 3 – OPERATION.....................................................................................................15
CONCLUSION............................................................................................................................18
REFERENCES.............................................................................................................................19
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INTRODUCTION
In today’s scenario, both hospitality and tourism industry is considered as one of the
booming sectors of any country. Hospitality includes hotels and accommodation facilities
where visitors and strangers are received and entertained however tourism includes travel
agencies, cruises, and airlines and so on (Medlik, 2012). Various new facilities have been
included in the hospitality services that include spa, conference and meeting, marriages and
events, swimming pools and various other facilities. The role played by both hospitality
industry and tourism sectors are significant in developing the economy of the country as
well as the world.
This assignment helps in understanding the interrelationship between hospitality and travel
and tourism industry. It helps in understanding the role and importance of hospitality
industry in travel as well as tourism sector. It also highlights the impact of integration on the
hospitality industry. At last, a business plan is developed that includes the operational
requirements of the organizational structure of the business.
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TASK 1- ARTICLE
1.1 DISCUSS THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER
TRAVEL AND TOURISM BUSINESSES
Article
PKF hotelexperts commenced since 1869 is one of the internationally recognised market
leaders in the field of hotel, leisure and tourism consulting. PKF hotelexperts is the part of
PKF International that has its member's firms in about 300 locations around 100
countries.
PKF hotelexperts has dedicated and experienced consultants who provide quality services
for hotel, leisure and tourism sector and has pioneered in hotel consulting with a splendid
track record.
COMPOSITION OF HOSPITALITY INDUSTRY
The hospitality industry is a very broad category that includes various fields such as
lodging, restaurant, popular catering, event planning, transportation, theme parks and
another related field within service industries. The hospitality industry is one of the fastest
growing industry in the world that generates both revenue and job opportunities for the
country (Cook, et al. 2014). The composition of hospitality industry are nightclubs, hotels
like 1 star to 5 star bed and breakfast, budgeted hotels, hospitality services like caterings
and in-house, pubs and bars like managed houses, free houses, tenanted or leased pubs
and restaurants like fast food, coffee shops, fine dining, cafes, mainstream and so on.
Major dependency of the hospitality industry is on the availability of leisure time and
disposable incomes (Law, et al. 2015). The classifications of the hotels are to be done
between 1 and 5 stars according to the services provided by them. Licenses are provided
to pubs and bars for social drinks establishments for selling alcoholic beverages as these
are the prominent part of the UK citizens (Law, et al. 2015). One of the entertainment
venues is the nightclubs that comprise of the dance floor to be operated till late nights.
Restaurants are the eatery joints that serve a variety of foods as per the regions in
exchange for money. Conventions centres and events locations are the places that
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provide space for seminars, conventions, meeting, expos and other related activities
(Mok, et al. 2013).
Fig 1 Composition of Hospitality Industry
TRAVEL AND TOURISM SECTOR
Travel and tourism sector offers all the related travelling services to its customer's various
tourism services are offered to the customers and visitors. Lodging and catering, travel
agencies, information and guiding, tour operators and visitor attractions are some of the
services included in travel and tourism industry. Tourism is an activity of travelling to one
place for a limited period of time (Smith and Puczkó, 2014). It is referred as the business
in order to attract a large number of visitors and tourists thereby catering to their
expectations and desires. Tourism offers an opportunity to an individual to explore new
places, to learn new things, to meet new people and also to learn more about themselves.
Tourism is considered as one of the valuable contributions to the economy of the world
along with being a bridge between the people (Smith and Puczkó, 2014). The term
tourism can be used interchangeably with travel. It implies that tourism is an act of
travelling for pleasure along with the ability of people to escape from familiar
surroundings. There are various modes of travel such as aeroplanes, buses, cars and trains
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Composition
of
Hosiptality
Industry
Travel
and
Tourism
Bars,
Nightclubs,
Pubs
Gambling
Hotels and
Restaurants
Event
Managements
Membership
Clubs and
Theatre

and so on. Travelling has become easier comfortable and safe with the technological
improvements (Teng, 2011).
FIG 2 Components of Tourism Industry
[Source: Teng, 2011]
INTERRELATIONSHIP BETWEEN HOSPITALITY AND TRAVEL AND TOURISM SECTOR
There is huge interdependency between hospitality industry and travel and tourism sector
as the customers of the hospitality industry is also the customer of travel and tourism
sector. The lower level of satisfaction in either of the fields results in a change in the
mindset of the customer (Walker and Walker, 2016). For example, if an individual is not
satisfied with any of the hospitality services such as accommodation or restaurants while
travelling using a tour package offered by the tour operator then It will affect both the
sector and industry. This represents interlink between hospitality and travel and tourism
business.
There is an equal and direct proportion between travel and tourism sector and hospitality
industry (Cook, et al. 2014). One of the most essential aspects of both the sectors is the
customer satisfaction. Similar competencies and proficiency are required by the personnel
in both the sectors. This represents the interdependency between both the sectors which
lead to growth opportunities in future and contribute to developing the economy of the
country.
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TASK 2
EXECUTIVE SUMMARY
This management report depicts the integration its implication and impacts of integration to
the hospitality industry. It analyses the implications of integration to the hospitality
industry. It also discusses the impacts of integration on the operations of businesses.
INTRODUCTION
The integration process is referred to those processes that include the actions and operation
of two organizations for mergers (Kusluvan, et al. 2010). It is one of the most important
elements in growth and progress of the business. Integration is an imperative procedure in
the hospitality industry in order to secure and less prone to failure.
2.1 ANALYSE THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY
INDUSTRY
INTEGRATION TO HOSPITALITY INDUSTRY
The concept of integration is common in the businesses for more than century. In the
process of integration, a major focus of the organizations is to reach the economies of scale
and also reduce operating cost (Thakran and Verma, 2013). The integration process is
adopted by the company when the aim of the company is to save money for long-term and
do not need to outsource the operations. Integration is classified into two types that are
vertical and horizontal.
VERTICAL INTEGRATION: vertical integration is referred to that integration where an
organization purchases either its suppliers or purchases another company in the chain of
distribution (Buhalis and Crotts, 2013). This results in minimising the operating cost thereby
maximising the profit. For example Marriott international acquire Starwood Hotels and
Resorts.
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HORIZONTAL INTEGRATION: horizontal integration is the integration where both the
organizations from different industries join together to form a big organization. The result of
horizontal integration is an expansion of customers’ base and benefits from economies of
scale ultimately maximising the profitability of the organization (Chen and Shen, 2012). For
example, the Accor Hotels bought Fairmont, Raffles and Swissotel are one of the kinds of
vertical integration.
Fig 3 Integration to Hospitality Industry
IMPLICATIONS OF INTEGRATION IN HOSPITALITY INDUSTRY
There are several implications of the integrations in the hospitality industry. It includes the
importance of branding and pricing policies, Control and manipulation of the market,
increased globalisation of the industry and independent organization by joining an
association with the aim to compete with larger organizations (Law, et al. 2014).
Expansion and growth of business: joining tow organization together results in sufficient
materials and resources for effective operating in the competitive business environment
which ultimately results in enhancing the growth and development rate irrespective of the
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Integration
Vertical
Forward
Backward
Horizontal

risks associated. It enhances the capital, financial and non-financial resources (Evans, et al.
2012).
Long-term benefits: various shortages are faced by the organizations during integration
which might result in long-term advantages for both the organizations (Shaw, et al. 2011).
The integrated services help the organization in serving loyal customers and also retaining
them. It directly results in the productivity as well as the profitability of the organization.
Obstacles in competitive entries: the integration of the two companies hinders the entry of
smaller organizations in the same industry thereby acquiring high shares in the market
(Chung and Parker, 2010). it results in drawing of brand and pricing policies in order to
improve the brand value and increase customer loyalty by eliminating risks from small
competitors.
Control and manipulation of the market: when two organizations join in to form one bigger
organization then this big organization owns higher market share which results in controlling
and manipulation of the market.
Associated risks: one of the major risks associated with the integration in lack of
confidentiality due to disclosure of database by both organizations (Zaitseva, et al. 2016). It
is essential for both the organizations to share their confidential databases.
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2.2 DISCUSS HOW INTEGRATION HAS AFFECTED A HOSPITALITY BUSINESS
The core competencies of both the organization are combined due to the integration of the
organizations. Major emphasis is on the integration of the use of resources, setting up
considerable charges, technological information sharing and other related factors. Some of
the effects of the integration of Starwood hotels and resorts and Marriott International are
given below:
Summary of transactions: 0.92 percent of the share of Marriott international will be given
to the shareholders of Starwood (Marriott international, 2015). The anticipated total worth
of shareholders of Starwood is:
Price per share of Marriott international $70.09
Cash consideration per share $2.02
Worth of Vistana Disposition $7.90
Total value $80.01
Influence on Operating Efficiencies: approximately 200 million dollars of annual cost saving
is expected to be generated by Marriott International.
Growth in Earnings: improvement in growth and revenue from sales of the assets result in
benefits to Marriott international.
Capital Recovery Program: it is expected to generate anticipated after-tax income of about
1.6 to 1.9 billion dollars through the program designed by Starwood resulting in benefits to
Marriott international (Marriott international, 2015).
Consistent Returns to Shareholders: it is expected to generate approximately 2.6 billion
dollars in fee revenues at the end of the year September 2015 resulting in the return of
about 2.24 billion dollars to shareholders (Marriott international, 2015).
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Increase in Global Growth: the integration of the organizations will enhance the growth
rate of the hospitality industry around the world. The abilities and competencies of both the
organizations will be merged to effectively serve their guests (Law, et al. 2013).
Below are given some of the general factors that have a major impact on the merger or
integration performance of Marriott International and Starwood Hotels and Resorts:
Technology: this is one of the crucial factors that affect the hospitality industry as advanced
technological solutions adopted by the organizations and using new and innovative tools
increases the sped of the integrated solution in the operations of the business (Zeng and
Gerritsen, 2014). Integration of the organization such as Marriott and Starwood will help
them to contact the customers by connecting with each other and helps in taking effective
decisions at different locations.
Cost integration: more funds can be invested by both the organization in the integrated
business activities (Tsang and Hsu, 2011). The operations and work quality of both the
organizations can be increased with the investment in technological advancement.
Combined investment due to integration leads to increased quality and balanced cost.
Lack of knowledge: vertical integration between Marriott and Starwood results in serving
similar market however a strategic plan is to be developed during the integration of the
organization that serves different market (Kim and Hardin, 2010). Insufficient knowledge
and business information might lead to failure in mergers and acquisitions.
Quality and globalization: the quality of products and services of both the organization
might be either positively or negatively affected due to lack of knowledge during and after
integration (Jones, et al. 2016). Lack of knowledge of global factors such as regulation and
laws, culture and society and so on results in limiting the growth of both organizations.
Various difficulties and issues might be generated while designing global policies.
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CONCLUSION
The conclusion of this management report is that various factors affect the integration
between two or more organizations in both negative and positive manners. Appropriate
knowledge and information of all the factors needed to manage the integration of the
organization for future growth and development.
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