University Report: Hospitality Provision in Travel & Tourism Sector

This report comprehensively analyzes the hospitality provision within the travel and tourism sector, primarily focusing on the UK market. It begins by exploring the interrelationship between the travel and hospitality businesses, highlighting the symbiotic relationship and the role of the hospitality sector in tourism. The report then delves into the implications of integration within the hospitality industry, examining both vertical and horizontal integration strategies and their impact on businesses, including the Marriott International hotel. The analysis covers standardization, economies of scale, and quality improvements resulting from integration. Finally, the report presents a rationale for a selected project and outlines a business development plan for the hospitality sector, providing a holistic view of the industry's dynamics and strategic considerations. The report uses Marriott International as a case study throughout.

Hospitality Provision in Travel &
Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship between travelling and hospitality business..............................................1
TASK 2............................................................................................................................................3
2.1 Implications of integration to hospitality industry................................................................3
2.2 Integration has impacted a hospitality business....................................................................4
TASK 3............................................................................................................................................6
3.1Rationale for a selected project..............................................................................................6
3.2 Business development plan for hospitality sector.................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Travel and tourism industry has very fast growing sector at United Kingdom. Hospitality
industry has interrelated with tour sector so that organisation those are run their business
activities in hospitality sector get advantages of developing industry. Government of UK has
develop regulations in order to promote this sector in world wide through this firm are get
several benefits to enhance performance as well as productivity in long run. In this report select
Marriott international hotel which are operate their business at global level around 127 nations.
They have approx 1.2 million room and additional 195000 room in developing pipeline.
Marriott international hotel was ranked 33 in Fortune's 100 best organisation. Here are working
177000 in the year 2017 (Barros, Butler and Correia, 2010). Owner of this whole group is a
Marriott family which are consist 25% share of total equity. In this report covers
interrelationship between tour & travel sector and hospitality. It also includes integration to
hospitality sector and its impact on business. Given assignment has covers rational selected
project and new enterprise development plan in hospitality industry.
TASK 1
1.1 Interrelationship between travelling and hospitality business
Interrelationship among tourism and hospitality enterprise
Name- AZBY
Date- 25 May, 2018
Tourism sector can be define as travel through an individual for recreational, leisure purpose in
a particular time. Management of tourism sector has develop tour plan in which it includes
visiting places, time, transportation mode, accommodation facilities, foods and many others. In
United Kingdom large number of visitor has came to visit UK cities, thus boost their economy
growth positively in long run. So that, government has make rule and regulations in order to
provide safety as well as security to tourists (Guttentag, 2015). Through this, they are able to
attract large number of individual toward nation and get more revenue in order to gain high
profitability. But at that time, travelling sector has continuously grow due to increment in
number of visitors. Its contribution in GDP of the nation economy is 33% of total part.
Role of Hospitality sector in Tourism
Hospitality industry has played vital role in tourism sector. Marriott hotel is providing several
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kind of services to their related to hospitality like accommodation facilities, foods,
entertainment services, room services, transportation and many others. Through this activities,
firm are able to attracting large number of individuals toward their services and get long run
sustainability into market place. Marketing manager of firm has conducting market research in
order to identify buyers demand, attitude, perception, behaviour, motivation factors etc.
accordingly develop hospitality services quality (Heung, Kucukusta and Song, 2010). Thus help
to provide facilities according to their requirement and get high customer's satisfaction resulted
increase brand value into market place. When individual has came for holidays, business tour or
any other purpose in new location then firstly they find out visiting places and then accordingly
select accommodate facilities as well as transportation services. Hospitality has associated with
accommodation, foods, conveyance. So that, when people visit then hospitality services
required if one action can not completed then another automatic cancel.
Scope and scale of hospitality sector
Given employment opportunities: By development of hospitality sector, more and more hotels,
restaurants, visiting placing, transportation agencies etc. are open thus increase employment
opportunities for local people. Through this, individual income are rising and their living
standards.
Enhancing tourists: Firms those provide hospitality services to their customers has focus on
their quality of services so that people are visit again their enterprise. Through this, they are
boost tourism sector positively.
Medical tourists: In present environment, medical treatments has very expensive in developed
nation so that each one person can not able to pay high money. So that, they are finding out
state where medical facilities should be cheap as compare to their nation and go that country
mostly developing nation like India as came under this categorises (Hudson and Thal, 2013).
Interrelationship among both sector
Both sector are interrelated to each others through this they are able to achieve firm goals and
objectives in limited period of time effectively. Some relationship of both are detail as follows:
Communication: Tour operator has find out potential customers and provide them full
information related to tour packages. They are provide all data to hotel and other services
provider for advance booking. Through this activities, enterprise are able to know how many
visitor are came, what is a reason, how many days and many others.
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Travel and holiday package: When tour operating organisation has make holiday package
then they are making a list of services as well as associated firm those provide that services
effectively. All these information has communicated to clients so that they take decision
effectively.
TASK 2
2.1 Implications of integration to hospitality industry
Integration can be define as two organisation work together in order to achieve common
goals and aim in given time frame appropriately in which both are has their own separate
identity. Through this, firm are capable to get economic of scale and offer low cost services with
out compromise quality. Thus help to achieve higher customer's satisfaction as well as long run
sustainability (Jaafar and et. al., 2011). That help to reduce waste and reserve resources
effectively in long period of time because integration among tour and hospitality industry has
get benefits of core competences and compete their competitors effectively. There are two kind
of integration has work vertical as well as horizontal, both are explain as follows:
Vertical integration: It is a procedure of preparation among supply chain management of both
firm has work together and another department has separately work. Through this activities, both
enterprise has take advantage of merger and server their services to large number of individual
effectively thus help to achieve goals and objectives in appropriately. Management of both
organisation has separately work and can not interfere into each other activities. It also called
later, forward integration.
For example, Marriott international hotel has make contract of merger with Marston's plcs. Both
are serving accommodation facilities to their clients and after merger the quality of services may
increase due to increment of available resources as well as techniques (Law and et.al., 2015).
They are also offer food facilities to their consumers to buyer those are using their
accommodation services.
Horizontal integration: Two companies are completing merger into each other and work into
market place with one brand. Through this, they are create monopoly situation at market place
resulted other organisation has decrease their market share as well as profitability. It is a very
help full integration strategies when organisation want to run their business activities with on
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brand name thus help to expending their market location, segmentation, targeting, positioning
and many others. Marriott has entire this contract and able to expend their business work into
100 + nation. Management of the company merger all resources and produce economic prices as
compare to their competitors thus help to attract large number of consumers toward organisation
product, service and get higher customer's satisfaction. That build positive brand image into
market with luxury brand value (Medlik, S., 2012). Enterprise has used this strategies in order to
increase their clients portfolio as well as reachability in niche location, by this they are able to
achieve sustainability for long time period.
For example, Marriott international hotel as well as Marston's both are offering same type
services to individual but after horizontal integration agreement, Marriott has provide their
services to Marston's clients. So that, get high consumers toward their goods and services
resulted build strong brand appeal automatic large number of buyer has attract toward their
commodities and facilities. Through this, management has identify new consumers segment for
expending their business activities into another location effectively.
2.2 Integration has impacted a hospitality business
Integration between two organisation has effected working process as well as market
position positively. But it has also create negative impact on organisation like after integration
firm has loss their power of decision, they share their all resources with other, small enterprise
reduce their brand image in front of large organisation and many others. A part from this,
integration are some benefits also like increase market reachability, large buyers portfolio,
availability of number of resources that provide economic of scale resulted firm are able to
provide low cost facilities to their customers, create monopoly in same industry, enhance buyers
satisfaction, build brand image and its value etc. (Sigala, Christou and Gretzel, U. eds., 2012).
So that, benefits are high as compare to losses so in United Kingdom several enterprise are enter
into this contract to take advantages of integration.
Affect of integration: Both firms has get benefits from merger and main profit of
integration is gain competitive advantages in industry thus help to compete high competition in
an effective manner. Here are explain some impact of integration are detail as follows: Standardization: Two organisation has enter into integration contract with the aim of
high profitability, sustainability and get competitive benefits. But after this, their
reachability should be increase with number of visitors. It is their responsibilities to
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develop standardization product and services for their consumers because discrimination
has rise dissatisfaction among buyers. For example, when one person has visit Marriott
hotel of UK for business purpose stay here for three days. In all three days has
experience all kind of services provided by hotel and come back. Again, after some time
they are prepare plan to visit US for same purpose and experience same services with
lettil positive modification resulted individual has fully satisfy with Marriott services
(Smith and Puczkó, 2014). If there arise any kind of difference then customer can not
satisfy fully and make plan to swatch brand or company. Economic scale: When two organisation has entire into integration merger agreement
then they have number of resources with higher quality. Management has used this all
these effective and achieve economic of scale situation thus help them to offer product
and services at low cost. Through this, enterprise are capable to attract lager consumer
segmentation toward their commodities and services resulted get high profitability as
well as long run sustainability significantly. Quality: Integration method has help organisation to increase their quality of services by
receive many other resource (Teng, 2011). Management of the company has develop
strategies in order to enhance customer's satisfaction for this they are providing training
to staff members how behave professionally in front of clients.
Integration may affected operational activities of Marriott international hotel
There are explain some some effect of integration techniques on Marriott hotel in detail
below:
 When enterprise are enter into integration contract then both are offer same kind of
services as well as product so that maintaining standardization.
 Through integration resources of an organisation should be double so that Marriott are
capable to influenced small business activities and get their market share.
 It is a very beneficial process for Marriott to get higher profitability with large market
share.
 By implemented horizontal merger, enterprise are able to build monopoly in the same
industry resulted other firm profitability should be affected negatively in long run.
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TASK 3
3.1Rationale for a selected project
In hospitality sector growth is very high as compare to other sector in United Kingdom.
According to last five years, says, after 2009 world recession time this industry has grow
contentiously.
(Source: Hospitality growth rate in United Kingdom, 2018)
So that, accordingly select food restaurant new venture, this chosen business has very
beneficial for entrepreneurs because it needed low funds, lands and other resources as compare
to hotels. In United Kingdom, with time number of visitors are increase those are came from
other location. So, each one individual has needed accommodation, transportation and foods
facilities, all are interrelated to each others. Location of the restaurant should be fix on visiting
places so travellers has easily get food according to their requirement (Tribe, 2011). Manager of
venture has develop promotional strategies to promote their innovative commodities in front of
individuals. For this, they are select some mode of promotion like social media, internet, make
contract with hotels, point of sell material and many others. Restaurant environment is very
important factor which are consider by entrepreneur in order to open new outlet. They want to
use traditional interior design and providing training to all staff members so that employees
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become able to behave in professional manner and provide higher quality services to buyer.
Restaurant is a best business option in hospitality sector because there are low investment needed
and operations activities is simple.
3.2 Business development plan for hospitality sector
Business development plan is a blueprint of whole activities which are done by
entrepreneur in order to open new venture. In given assignment select restaurant that is fast
growing sector in UK. Step of all business plan are explain as follows:
Stage 1: Development
Idea- It is a first step, in which entrepreneur has identify opportunity at market place and
develop plan in order to grasp that opportunity effectively. For this, individual has see their
surrounding environment very deeply and find out issues face by society. Entrepreneur has
ability to find appropriate solution of given problem (Vanhove, 2017). They are make list of all
ideas and select one according to their won strength, weaknesses and many more. Restaurant
business has selected because number of visitors are increase in UK and their needed different
kind of food.
Market Research- Entrepreneur are conducting market research to know individual
needs, behaviours, ethics, perception and many more accordingly develop menu list as well as
product, services. Through this they are able to get higher customer's satisfaction.
Target market- Businessmen has choose target market according to their ideas like
restaurant. They want to sever food at low cost with higher quality so visitor those has low
budget. So there target market is middle class family, young people those can not earn yet, old
age people are many others same kinds.
Target location and business size- Place or location of restaurant should be fix where
there footfall of visitors has higher. Like London eye, River Thames, tower of London, Big Ben
and many more (Guttentag, 2015). But according to idea, River London is best place to
established their restaurant. Because here many common individual has came for spend their
quality time.
Funding- In UK, several mode of finance has available some are banks, financial
institutions, angel investor and many others.
Products and services- Entrepreneur has make fix menu of product so that they are
capable to full fill requirement of large number of individuals in an effective manner.
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Licensing- In order to start new restaurant entrepreneur want to take license for
government authority so that they are easily run whole business activities appropriately.
Stage 2: Design
There are explain some factor related to design in detail below:
Culture- Restaurant environment is very important because if client can not feel
comfortable there then they can not visit again. So that, firm is organising training program to
enhance staff members attitude, behaviours etc. toward their buyers. Its very important that they
behave in certain manner to satisfy consumers effectively.
Exteriors and Interiors- Internal environment of restaurant should be related to traditional
approaches because maim aim of firm should be provide food services to meddle class people or
visitor those have low budget. Through this, they satisfy their clients effectively (Barros, Butler
and Correia, 2010).
Functional Areas- The main function are in restaurant is preparing food, security,
customer services and positive communication with consumers. Management has focus on each
one section because all are interrelated to each others.
Sustainability- Management has develop action of plan in order to get sustainability in
long run. For this they produce higher quality goods and serve it to clients that help to achieve
customer's satisfaction.
Stage 3: Operation
Staffing by functional areas- Entrepreneur has hire candidates accordingly to their
requirement like chef, and other flower services provider, accountant and many others.
Specialist qualifications- For new applicants, they are fix their qualification, education,
experience etc. resulted easily select employees for restaurant.
Promotional activities and price - There are several method are available to promote
restaurant like social media tool, mobile billboards, hoardings, point of sell material, printed
paper etc. Through this activities, firm are able to provide information about product features,
prices and many more to potential consumers in an effective ways.
CONCLUSION
From the above report it is concluded that tour & travel sector and hospitality industry
has interrelated to each others because they are depend on each others. Tour and travel sector
has increase employment opportunities in the country so that per person income may enhance as
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well as rise living standard. After Brexit, UK has break agreement with EU resulted face
recession time in their manufacturing and other sector.
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REFERENCES
Books & Journals
Barros, C.P., Butler, R. and Correia, A., 2010. The length of stay of golf tourism: A survival
analysis. Tourism Management. 31(1). pp.13-21.
Guttentag, D., 2015. Airbnb: disruptive innovation and the rise of an informal tourism
accommodation sector. Current issues in Tourism. 18(12). pp.1192-1217.
Heung, V.C., Kucukusta, D. and Song, H., 2010. A conceptual model of medical tourism:
Implications for future research.Journal of Travel & Tourism Marketing. 27(3). pp.236-
251.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
Jaafar, M. and et. al., 2011. Entrepreneurship in the tourism industry: Issues in developing
countries. International Journal of Hospitality Management. 30(4). pp.827-835.
Law, R. and et.al., 2015. Distribution channel in hospitality and tourism: Revisiting
disintermediation from the perspectives of hotels and travel agencies. International
Journal of Contemporary Hospitality Management. 27(3). pp.431-452.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
Sigala, M., Christou, E. and Gretzel, U. eds., 2012. Social media in travel, tourism and
hospitality: Theory, practice and cases. Ashgate Publishing, Ltd..
Smith, M. and Puczkó, L., 2014. Health, tourism and hospitality: Spas, wellness and medical
travel. Routledge.
Teng, C.C., 2011. Commercial hospitality in restaurants and tourist accommodation: Perspectives
from international consumer experience in Scotland. International Journal of
Hospitality Management. 30(4). pp.866-874.
Tribe, J., 2011. The economics of recreation, leisure and tourism. Routledge.
Vanhove, N., 2017. The Economics of Tourism Destinations: Theory and Practice. Routledge.
Online
Definintion of Tourism (UNWTO Definition of Tourism) / What Is Tourism ?, 2018. [Online].
Available through: <http://www.tugberkugurlu.com/archive/definintion-of-tourism-
unwto-definition-of-tourism-what-is-tourism>./
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