Analysis of Hospitality Provision in Travel & Tourism Sector Report

This report delves into the critical role of hospitality within the travel and tourism sector. It begins by exploring the interrelationships between hospitality businesses and the broader travel and tourism industry, highlighting the significance of customer satisfaction and the impact of globalization. The report then examines the implications of integration within the hospitality sector, analyzing both horizontal and vertical integration strategies, and their effects on businesses, including mergers, acquisitions, and the associated advantages and disadvantages such as cost reduction, market competition, and employment impacts. A case study on Marriott hotel is included. The report further provides a rationale for a selected project, justifying decisions related to the target market, and concludes with a plan for a hospitality business, detailing operational requirements and human resource allocation. The report emphasizes the importance of communication, customer service, and adaptation to market changes, providing insights into the dynamics of the hospitality industry and its integration with the travel and tourism sector.

Hospitality Provision in Travel
& Tourism Sector
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TABLE OF CONTENTS
INTRODUCTION..............................................................................................................................3
TASK 1...............................................................................................................................................3
1.1 Interrelationships between hospitality and wider travel and tourism businesses....................3
TASK 2...............................................................................................................................................5
2.1 Implications of integration to the hospitality industry.............................................................5
2.2 Affect of integration on hospitality business:..........................................................................7
TASK 3...............................................................................................................................................9
3.1 A rationale for a selected project that justify decisions linked to target market......................9
3.2 A plan for a hospitality business which includes the operational requirements....................11
of the organisational structure in relation to human resource allocation....................................11
CONCLUSION................................................................................................................................12
REFERENCES ................................................................................................................................13
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Introduction
Hospitality has certainly become an important sector in travel and tourism sector. In 2006,
international tourism arrivals had reached over 842 millions. Similarly, passenger transport system
has also improved to a wider range (So, King and Wang, 2016). It was estimated to 883 billion
which clearly means that international visitors increased by $2.4 billion in a day.
For the income and employment generation, hospitality is ranked number one industry
under service sector. It can be estimated that services will not only grow in developed areas of
country but also in developing parts of the world. This report includes relationship between travel
and tourism and hospitality management, implications of integrations to hospitality industry and its
affect and a complete rationale describing about its objectives, target market and licensing. It
describes about Marriott hotel and its integration with other travel industries.
TASK 1
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Article - Interrelationships between hospitality and wider travel and tourism businesses by
XYZ
Travel and Tourism can be described as a process which a person does for his
entertainment purpose, business trips, pleasure and leisure. It has acquired a lot of importance so
that it can gain satisfaction for customers in present era. Marriott's customers does market research
and select travel destination for spending their holidays (Horner and Swarbrooke, 2016). As
globalization has increased so this sector has come out as one of the growing industries and is
pacing with other similar industries. Travel and tourism is one of the prominent parts in which
hospitality has contributed income from travel and tourism makes its space at economic level.
High profile people like entrepreneurs, business, and professionals lead to contributes highly in
hospitality industry. Following are the features of hospitality. Business is included when tourists
travel from one place to another. Accommodation is fundamental when tourists check in during
holiday packages. They should be treated with utmost care. However, when ratings of hotels
decrease then facilities also decreases. Various mergers and acquisitions have taken place for their
establishments. There are mainly two types of integration vertical and horizontal integration. In
vertical integration, company lowers the operating cost and increases profitability. In horizontal
integration, strong customer base and expansion of business is focussed (Horner and Swarbrooke,
2016). It takes place when both companies are of equal level and merge with each other. Merger
rises efficiently and it is considered to be the most effective method for the organisations.
Integration helps in reduction of competition and leads to monopoly in the market. There is a rigid
control on the operations of companies while vertical merging generates good relation between
two companies and technical assistance is provided so that supply chain management is improved:
Provide employment opportunities: It satisfies customers in all respects and thus persons who can
maintain good public relations are required so that customers feel comfortable and they repeat
their visits again and again (Pandža Bajs, 2015). Communication skill of employees should be
strong so that they can seek jobs. According to report, employment in this sector has increased up
to 1.5% from 2008 to 2009.
Increment in Tourism: From year to year, tourists have risen up enormously. At international level,
travelling has increased at larger level. This created social equality and political aspects all across
the globe. Marriott travels decreased expenses due to which there has been a rise in travel and
tourism industry. Travellers have increased at international level about 4.5% in the 1990's and late
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2000's.
Awareness in Tourism: Tourism sector is surrounded by customers and hospitality sector. Travel
sector completely rely on customers and upon their orders and satisfaction level of their journey.
Organizations of tourists are formed by arrival, combining, departure, lodging, boarding's, hotels,
and restaurants, transport (Boniface, Cooper and Cooper, 2016).
Marriott focussed on all these aspects very carefully and gave surety that perfect and
accurate services are provided to visitors so that no complains are gathered from their side. It
provided excellent services to customers so that their money was worth spent.
Performance of Marriott is unstoppable in the whole market. Huge number of packages are
provided by travel agencies to customers on the basis of their requirements. Travellers usually
prefer packages where they can spend less and enjoy. Customer's intention always lies in getting
low packages and exploring more in that amount.
On the other hand, the way of communication is also kept in mind by this sector. The way
of greeting to customers comes in hospitality sector. If the customer is glad and satisfied with the
communication and services provided then he/she will repeat his/her journey or that customer will
reject the order. Marriott believes in good communication skills. Regarding it, various seminars
and programs related to orientations are organised. Packaged holidays are significant in hospitality
sector as they are dependent on price structure. If a customer decided for budget package then
obviously he/she won't opt for any 5 star hotels as that customer must look into its budget every
time after visiting its destination (Su, Swanson and Chen, 2016). Packages purchased at huge level
are popular packages, so customers get advantages of airline ticket prices and good hotel rates.
Some agreements are also offered by hotels to them so that there is continuous flow of customers
in seasons.
Marriott travel agents consider their clients on a regular basis to ensure that their customers
are spending time comfortably While, business class people go for hotels which lead to provide
various amenities, so that they can stay with all facilities available. They search for hotels through
where facilities are provided such as internet access, business centres, conference areas,etc..
Business travelling has been increased due to globalization and this will grow further as
destinations will connect further. This class was developed specially for business people who
needed space to do their work. Exhibitions and conferences are also important for international and
national industries (Hon and Lui, 2016). Through exhibitions, customers get chance to view
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services and products and like this they make mind to purchase them. New offerings with their
original concepts are presented by organisations and companies. Many hotels are benefited from
such exhibitions as they attract thousands of customers. Museums, natural attractions and theme
parks are some kind of creations which attract customers from all over the world
TASK 2
2.1 Implications of integration to the hospitality industry
Hospitality has emerged as one of the largest and fastest growing sectors in terms of
development. There are different reasons due to which it has acquired global market. These
reasons are related to customer satisfaction, medical services, delivering flawless services to
customers (Su, Swanson and Chen, 2016). Through this sector, public could get to know about
travel and tourism sector and demand for the same also increases in market which is enquired by
organisations. They provide services and in return hospitality services are provided by travel and
tourism i.e. Marriott. Due to integration between travel and tourism and hospitality, there is tough
competition between organisation and firm which benefits competitors. This process helps in
compensation of reputation of organisation and proves importance of business.
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There is horizontal integration system in which maximization of profit and extending customer
area is preferred. On the other hand, where customer satisfaction is focussed mainly and where
customers enquire for cheap and best packages are called vertical integration system. Various
mergers and acquisitions took place between organisations (Hon and Lui, 2016).
One of the largest transaction of hotel was of Starwood Hotels & Resorts by Marriot
International which valued 12,2 Billion US $ since 2007. Similarly, Blackstone acquired Hilton for
26 billion US $. France's Accor hotels acquired Toronto based parent company, Raffles and
Swissotel brands for $430 million, Marriott acquired Delta Hotels & Resorts for $135 million in
2015.
Some advantages of integration are as follows:
Transportation cost and other travelling expenditure can be reduced to wide extent due to
ownership of hotel chain. All hurdles and problems are resolved at the initial stage of investing as
integration identifies these problems. Managing cost of travellers is saved due to this process as all
services are required by him are available at one place. Number of tasks is managed easily and
properly in vertical form of integration.
In this one section of this sector relays on another section so all extra expenses like
transferring and handling charges can be saved at par. All services should be equal in all aspects
for any industry to succeed and grow in all areas where it is capable opening branches.
Many companies like Marriott not only opened branches in various areas but also increased
brand reputation and achieved customer satisfaction. Mergers have resulted in termination of small
organisations from market and like this all employees of these small organisations became
unemployed leaving a bad effect on economy. During merging, there are chances of conflicts as
both organisations carry different vision and mission with them. Services made by company
should remain same wherever it is having its branches and anything less than it wouldn't be
acceptable by neither staff nor y customers.
If there is any kind of merger than it has a negative influence on society. It creates
problems for smaller ones because only strong and the best can survive in market as competition is
increasing rapidly. One thing that has affected this sector is globalization. It has a very huge effect
on this sector. Revenue generation is one of the important factors due to which countries are
encouraging this industry. Many countries are focusing and investing a lot as travel rules have
been relaxed in many countries. This has made tourism to expand worldwide and globally with the
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other organisations (Leung and Baloglu, 2015). It is important to note that international tourists
bring more revenue as compared to local tourists. In developing countries, exchange value of these
tourists leave positive effect on economy. Rate of visiting local tourists is less than international
tourists. This helps in decreasing poverty. Foreigners bring revenues to large extent and increase
revenue of the nation.
2.2 Affect of integration on hospitality business
Various issues have been arisen due to Integration. It helps us know the present situation of
market. When both organisations include themselves in making new brands then it becomes
complex. Its impact is contagious in the hospitality industry. It holds monopoly after taking a small
company because small companies have no choice. The control of companies is extended to other
sectors too. If it’s vertical integration then control is over sector whether in logistics or in
manufactures directly affects the suppliers as well as small and medium scale industries.
Moreover, transparency is comes in communication and understanding of various functions.
This is a crucial form of standardisation. Services are influenced by these types of
integration. Economical and geographical misunderstandings are sometimes created by these types
of integration (Kim, Vog and Knutson, 2015). Drastic changes have come by these types of
integration new contract forms and agreement has emerged out. However, some hotels like Bulgari
and Marriott have been benefited. Some companies have gained fame by merging with larger
companies. There has to be a legal approval by the owner of the company while selling its
property to another or merging company. It should be conducted in a systematic manner due to
dynamic and continuous environment in order to organize firms and most importantly managers
should run the organisations properly. Advancement in existing structure of business comes due to
integration. Many needs of the businesses are fulfilled due to integration. Impacts of integration
Economic Scale: Operating cost is reduced to a significant level due to integration. Initial
investment would definitely increase if any travel agency takes over hotel but there would be many
advantages. If hotel provides its services to any travel agency then tourism will emerge in its
starting years then there would be lot of benefits due to it.
Standardization: It is a complicated and huge process for the components that would be easy to
handle but engagement of human elements made it complex. Marriott has a complex
standardization process and at every branch wherever there will be a visit of customer he will be
greeted with the same environment and similar activities will be followed there too (Kandampully,
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Zhang and Bilgihan, 2015). A company must be strict, efficient, hard and capable to work in all
types of level in its branches for application of standardization.
Quality: There is no guarantee of quality increment during integration process. It just depends on
the components involved. As the employees think that the approach is not feasible that's why they
do not follow the path of new bosses. Customers are in the direct contact of management so the
demands of them get fulfilled by them easily. Managers of this industry try to reach beyond their
expectations. Many companies face of assuring quality wise services to customers.
On the other hand, Integration has affected functions of organisation immensely. It
provides lot of benefits to customers when the integration of two organisations takes place. They
get satisfied tremendously. Competition also reduces in market as the number of competitors is
engaged in merging process. An environment of monopoly is created those results in giving fewer
choices of organisations to customers (Kasiri, Cheng and Sidin, 2017). Then, profit is maximized
and operating costs of managing the branches in an individual level is also reduced. All types of
costs and expenses are reduced are bear by one company and revenues and incomes are increased
at higher level.
Incentives and rewards are distributed for better services among employees if costs are
reduced. They have sole motive to expand their business and provide their services in other
various nations of the world. They expand globally. Like this customer base line of the company
increases. There are various strategies, plans and procedures.
Now, when mergers are there so plans and procedures are made by single department
which has to be followed by department. These are made according to requirements.
During the process of integration, there is an increment in effectiveness and efficiency of
management. It further crosses the line of perfection by accomplishing strategies and
responsibilities of an organisation. Accuracy at authority level also arises. For getting better
performance of any organization, availability of resources should be there which should be utilized
at optimum level. For this, key word' innovation' should be initiated in ideas. Like this,
integration solves and identifies all problems that are related to business management at the initial
stage of investment. Shareholders receive data and thus business has more values. The Biggest
advantage of this dynamic industry is that they can adopt change i.e. they are flexible. Managers
remain updates with information through effective information technology. Website of the
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company display all information and retailers, customers, distributors, shareholders manage
through these sites.
TASK 3
3.1 A rationale for a selected project that justify decisions linked to target market
A rationale developed for hospitality is based on particular example which is
known as targeting the market. Therefore, to develop a rationale a full project plan need to be
prepared with objectives, market research, target market, licensing and much more:
Stage 1:
Concept:
Objective of business is starting a hotel Sean and Sharon Hotel which will be combined
with a restaurant. This hotel would provide and develop specific tourist’s products. It’s one of the
best business approaches with innovative techniques and recent international trends in hospitality.
This would be set in UK as demands of tourist have increased remarkably in recent years due to
increase in population.
Here the focus would be on middle class families rather than high profile people who
cannot afford luxurious services. Competition would give them best budget. More objectives
would include healthy food system, usage of renewable and clean resources. Providing better
services to customers and achieving customer satisfaction would be the motto. It focuses on zero
waste management and low carbon mobility (Giaoutzi, 2017). This hotel manages overall carbo
and ecological footprint of transportation in areas of supply chain. It encourages business practices
where planet, people, productivity all is benefited. For it food is pure culturally important element
of everybody's lives. Good indoor air quality is maintained so that productivity, health, and
comfort of building occupants are managed. Customer services will the core objective of it. It
comes in contact with various people and this happens initially from booking to tour packages.
There is need of assistance at various level like choosing right menu, accommodation area etc. by
customers. So better performance is also one of the major of hotel and restaurant. Service provided
to one customer should be equal to service provided to another. There should not be any difference
in the delivery of services. Then, products served to customers should be quality based else there
will be bad performance ratings from their sides. Each category of service has different goal and
thus standard for measuring their quality also differs. Its mission is to provide genuine, reliable,
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caring and excellent service that would be superior to all competitors. Its vision is to open a
standard hotel that is can be ranked number one in choice in Las Vegas
Market Research
Market research would include collecting primary and secondary data. This would
genuinely lead to success of the business. Interviews and questionnaire related to questions of
hotels and restaurants and demands of customers are asked to common public. People fill the
questionnaire according to their mentality. Then looking at that research planning of the hotel is
made.
Research from secondary data is also accumulated. Researchers through various sites and
mobile devices attend customers and receive information on current market trend, food varieties
and various other supplies. This research helps the management to find suitable products for their
customers (Su, Swanson and Chen, 2016). This also helps in finding that how management is
dealing with them. Sample size of customers could be 1000 that could make a visit to UK tourists
destination.
Target market
As discussed above the targeted families are middle class as they cannot afford high
packages. In addition, deals people who value money will be included and customers of all ages
will be the target market. Target market will be of loyal customers include Government officials,
Tourists, college students, Corporate Students, Business people, Travellers, Event managers,
Religious organisations.
They can easily afford deals and products of hotels. Geographical locations of this hotel would be
UK tourist Destination.
Size of business:
Size of the business would be 150 rooms without AC and 200 rooms with AC. Food and
lodging will be included in the amenities of hotel.
Investment
Investment has been made partly from bank loans and half of the investment has been done
on partnership basis. Therefore, the ratios will be 50:50 after taking loan from bank and doing
partnership. An estimated budget is made by doing enquiry with all-important organisations. This
estimated budget is up to 5000 pounds per involving each person which would enjoy all facilities
of transportation, luxurious room, food and beverages etc.
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Product & Service
It is very important that the quality of product and services should be fruitful and should
match the standards laid by the industry (Sparks and Bradley, 2017). These services include
laundry facilities, quality wise food, room service facility etc. Customers have various demands
and comfort level so hotel should reach their comfort level and should fulfil all their necessary
demands.
Licensing:
Hotel will follow all legal laws and policies and things would be driven in systematic
manner. All formalities will be completed it receives licence to open and run business. Organisers
should confirm that the services or places they have booked should be licensed. License number
should be checked perfectly.
3.2 A plan for a hospitality business which includes the operational requirements of the
organisational structure in relation to human resource allocation
Design & Operation:
Now comes, interior, exterior and ambience which are the important part of this industry.
1. Ambience: This hotel would definitely handle designing and hotel effectively because it
helps in sustaining customer service nicely. But the interior should be simple as the focus is
made on middle and no so luxurious. The feeling should be grateful as if like people have
arrived to some beautiful and heart touching place.
2. Culture: The culture of hotel has to be pleasant and filled with positive attitude of staff
members. There should be transparent communication between employees and senior staff.
3. Interior: It would be face front outside the building and pool deck and back parking would
be exterior entrances. Everyone aspires for more but they search for such places which are
friendly to their pockets. Therefore, this hotel positions itself where these people can relate
themselves easily. They aim is to provide perfect accommodation with quality wise
services (Law, Leung and Fong, 2015). Overall, they believe in quality management. For
this, employees are trained and regular sessions are conducted.
4. Exterior: Its exterior is well-maintained with playgrounds and swimming pools for kids.
5. Sustainability: It could only be maintained if good services are provided to them so that
these customers are converted into repeat customers. Positioning of hotel is done to attract
more customers. These attractions include upper middle and middle class people. They
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