Analysis of Hospitality Provision within the Travel and Tourism Sector

This report analyzes the hospitality industry's provision within the travel and tourism sector, focusing on the scope, scale, and interrelationship between the two. It uses Greene King as a case study to examine the implications of integration, including vertical and horizontal integration strategies, and their impact on the hospitality business. The report also explores how organizations should respond to the consequences of integration, such as cultural clashes and communication challenges. Furthermore, the report develops a rationale for a new hospitality business, outlining a product-service concept and producing a project proposal for a new restaurant chain, including financial considerations, target customers, and the benefits for stakeholders. The report emphasizes the importance of quality services, employee satisfaction, and brand reputation in the hospitality industry.

Hospitality Provision in the
Travel and Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
A. Scope and scale of the hospitality industry within the travel and tourism sector and its
interrelationship .....................................................................................................................1
TASK 2............................................................................................................................................2
2.1 Analysing the implications of integration to the hospitality industry..............................2
2.2 Impacts of integration and how the organisation decides to respond to the consequences
of integration..........................................................................................................................3
Respond to the consequences of integration: ........................................................................4
TASK 3............................................................................................................................................5
3.1 Develop a rational for a new hospitality business/project outlining the product-service
concept....................................................................................................................................5
3.2 Developing and producing a project proposal: ...............................................................5
Conclusion.......................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Hospitality industry is that sector which provide different kinds of services like event
planning, theme parks, accommodation, restaurants and many other kind of services. This is a
sector which provides various benefits to the nation in terms of revenue and Gross domestic
product. In this present report Greene king has been chosen for assessment. Greene king has its
own hotels, restaurants and pub in United Kingdom. It was founded in the year 1799 whose
headquarter is in England. It is UK's largest pub retailer and brewer. This present assignment will
focus on scope and scale of the hospitality industry within the travel and tourism sector and its
interrelationship. In addition to this, implications of integration to the hospitality industry and its
types will also be covered in brief. Furthermore, how integration has affected a hospitality
business will also be discussed in detail.
TASK 1
A. Scope and scale of the hospitality industry within the travel and tourism sector and its
interrelationship
Travel and tourism sector: It is one of the biggest sector in the world which provide
services to people in various forms. It consists of various services because when a person plans
to go out airlines, hotel, guide everything comes under the services of travel and tourism sector.
This sector gives revenue to the nation, along with this it also provides employment to people.
All these services are provided by travel and tourism in such a way that it provide satisfaction
to the tourists (Middleton And et.al., 2009). In United Kingdom, travel and tourism sector
contributes 11% in the entire Gross domestic product of the nation. Other than this, United
kingdom is the world's 6th biggest tourist destination where people like to go and enjoy their
holiday.
Hospitality Industry: It is that sector which provides facilities like Hotel, restaurants and
pubs to the people. On every occasion or festivals this sector provide different type of services
like banquet and gardens are used by people to celebrate any occasion. Those hotels or
restaurants are chosen by customers which provides best services so that people can enjoy their
journey and feel more comfortable. This sector also provides higher growth to the nation as
every visitor has to stay at some or the other Hotel so, it highly contributes in economic growth
of country.
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Role of Hospitality in tour and tourism:
While a person plans to travel in any part of the world, they book flights and hotels as the
first priority. If stay is not comfortable than no tour gets successful so it is the most important
part of tourism. Without Hospitality tour is not possible to continue as one needs to stay and eat
for their basic needs (Sheehan, Grant and Garavan, 2018) So hospitality industry provides a
major role in travel and tourism sector. This also provides various employment opportunities to
the people of the nation. In addition to this, income and business will be enhance of hotels and
restaurants due to the travel and tourism sector. People book hotels while travelling and thus, due
to travel sector business of hostels and restaurants got enhanced and they started earning major
of their incomers from tourist. Earlier the Greene king used to earn from weddings, birthday
celebration and less from tourists. But from the day tourism got increased due to their various
different facilities and package tours, people started feeling safe and jumped to travel more often.
This is the reason behind development of both the sectors to a great extent.
Interrelationship Between Hospitality and tour and tourism:
Both the sector are developed to provide services to people. Hospitality sector and tour
and travel sector both are interrelated with each other. Travel and tourism sector can not be able
to operate without hospitality. As, this sector operates as per the need of customers and in today's
world every one like to take such tour packages in which stay and food are included. Such
packages can only be provided by making contacts with different hotels. This will give best
services to clients and more benefits can be enjoyed by both the industry.
Both are interrelated in such a way that it is being difficult to operate without each other.
People travel for business to leisure and thus all their needs can be fulfilled by taking services of
both the sectors. That is the major reason of both the sectors and their interrelationship.
TASK 2
2.1 Analysing the implications of integration to the hospitality industry
Integration is an important way to earn more incomes and profits in the Hospitality
industry from the customer. Integration is a way to provide better services as per the need and
wants of people. No one alone can provide all the best kind of services. So it is really important
to imply integration to hospitality industry. There are some effective integration between the
Greene king International and the travel and tourism organization. There are majorly two ways in
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which integration can be carried to improve the quality of services and in order to give all the
best quality services in a single package offer.
Vertical integration: In this type of integration hotels buy the product to suppliers and to
another organization in distribution chain is called vertical integration. This will help in reducing
cost to a great extent along with this, profits will also be maximised by the same. This will help
the hotel in distribution of services and its retail business. Business will be controlled in a better
way by the same and therefore, it will control the manufacturing and other activities.
Horizontal integration: In this kind of integration two business get merge together to
form a new venture. It is mainly done to increase the overall business and its profits and
productivity is the major concentration (Vanhove, 2017). New market will be a big opportunity
for both the businesses where they can expand their new venture. This type of integration is a
strategy of organisations to grow more in their targeted market.
There are some leading implication of integration in the hospitality industry as follows:
In every business which provides services has the major duty of giving quality services at
all its branches. Like green king is operating in entire United Kingdom so it is the duty of Hotels
to provide best services to their clients. No employee should be terminated due to integration
between two organisation. It must be kept in mind that all the staff must get the position on what
they were before. It will give them job satisfaction and their morale will be increased by the
same. Else if it fails to do so than brand name of entire Hotel gets affected. So it is really
important that to continue the reputation of the brand name, Hotel should provide the best quality
services to its customers. As brand name is something which should always be maintained
because it is easy to lose but very difficult to build.
2.2 Impacts of integration and how the organisation decides to respond to the consequences of
integration
Impact of integration:
 Integration of big ventures is really a loss for people as when two organisation get
merge together it becomes a problem for smaller ventures. As two big companies
come together than many new ideas, thoughts and capital gets merge. This all
leads to expand the business and problems for smaller units arises (Salihoğlu and
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Gezici, 2018). In result they get closes down and unemployment rate increases in
the nation.
 Integration also leads to change in the decision making process of companies.
Because when two ventures come together to work on a same platform it is
difficult for them to understand everything. as both the organisation has different
mission and vision which they have major focus on. Thus, conflict between
people arises due to the such differences.
 When two organisation gets merge with each other, it is really difficult for
companies to adopt each other culture. Majority of organisation faces cultural
clashes as every company run in their own way. It results in change in working
environment of employees.
 Communication is also a big challenge that is being faced by Employees and
management after integration. This a major impact of integration which the
organisation requires dealing with.
Respond to the consequences of integration:
In case of Integration and mergers organization should respond and take such steps that
their decision of integration does not get failed.
Company should focus majorly on developing a training session where all the facts related to
integration should be told (Burke,2018). Every employee should know about the merger and its
major reasons behind. There are various problems faced by employees and management, impact
of integration can be deal in following ways:
 No employee should be terminated due to integration between two organisation. It must
be kept in mind that all the staff must get the position on what they were before. It will
give them job satisfaction and their morale will be increased by the same.
 Working environment of new venture should be such that employee does not feel a major
change. Such environment and culture should be adopted which makes it easy for
workers of both the organisation to adopt.
 Trainings should be provided for new mission and vision so that employees can get
motivated towards the new goals and objectives.
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TASK 3
3.1 Develop a rational for a new hospitality business/project outlining the product-service
concept
Business plan rational: In today's world food and beverages sector is earning higher
revenue due to the reason people started going more out. So for the same Greene king is planing
to start a new restaurant chain of its own in London. In addition to this, it will provide various
different services in which the major concentration is on opening a different section in restaurant
where people can sit for long hours and read different books. Restaurant will be opened at
medium scale and number of restaurants will be 10 in number. All the money that will be
invested will be taken out from the personal sources only (Le, McDonald and Klieve, 2018).
Greene king is itself a big brand name and is very much stable in terms of finance. It has hotels
in all around the United Kingdom so money invested by hotel in its restaurant chain through its
profits from hotel business. Targeted people will be young ones due to the reason of that they are
more outgoing and like to eat and try different cuisines. The management of the hotel will target
there potential customers on the basis of location, price and preferences of food. Major focus of
Greene king will be on quality of food and fast services so that people can enjoy their time and
get satisfied by the same. Reason behind opening the new business it is being planned by Greene
king so that higher revenue and a brand name can be earned. As in today's everyone likes to start
new business and earn more so that position in the market can be earned. Other than this, The
stakeholders of Greene king Hotel will be in major advantage as Hotel will earn money through
its chain of restaurants also, management will be in less stress and better communication, staff
will focus on there job role and the most important customers will be highly satisfied.
3.2 Developing and producing a project proposal:
Stage 1- Development
Idea: Before planning of any business, first stage is to bring an idea that can be implemented.
Business can not be developed without an idea (Cornelissen, 2017). Greene king is coming up
with an idea where it is planning to start its restaurant chain In London. It has came in mind of
top level management of Greene king due to the high growth in the food and beverages sector
has been noticed. One of the major reason is to grab the attraction of Tourist so that they can
book Hotel as well.
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Development of new restaurant chain: Greene king is planning to open its new restaurant
chain in London. To develop the same it is making a project so that it can be determined in
advance the things that are required to be done. The cited Hotel in planning to start its own food
chain so that it can earn more revenue from the same (Calhoun, O’Neill and Douglas, 2018). It is
a way by which hotel can expand its business in the same industry and create its brand name.
New restaurant will provide various services through which people can enjoy their food and
different kind of services.
Objectives: Major objective of Greene King is to provide the best quality food and maintain the
hygiene factor.
Vision: - To open a restaurant chain that become the best restaurant in terms of taste and quality
in all over the London.
Initial Concept of the business- The initial concept of the business is to open medium scale
restaurant combined with a different area for novel and books where people can enjoy reading
along with different beverages.
Type of service: Food and beverage services is the major focus of Greene kind. Other than this,
Restaurant will give complimentary services and home delivery of food. This will help in
attracting maximum number of customers. As everyone likes to enjoy the delivery of food at
their place, so, this is the major focus of new restaurant opening in London. Along with this a
separate section for novels reading will be opened where people can seat and read different
books along with various snakes and beverages.
Targeted audience: Greene king is planning to target young people between the age of 25 to 35
as they are more outgoing. It is the target of restaurant to cover these people in the best possible
way (Koens and Wood, 2017). It is being targeted because the kind of concept Greene king is
planning can be met by young people more. As young people likes to read more along with that
they enjoy spending leisure time which will be the major focus of Greene king
Market segment: On the basis of lifestyle market is being segmented by Greene king. Here it
has been chosen so that it can be easily understood that what people are required to be covered.
Area: Urban areas will be covered majorly under this project because their people are more
likely to eat outside. Here Greene king is opening a restaurant which can be run majorly only at
those places where people go outside more.
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Scale: In starting majorly 10 restaurants are being planned to be opened in London by Greene
king. As it is just opening its hotel in London because of the tourist place and majority of people
like to go out in London. So Greene king is currently planning to open its chain of restaurant at
small scale so that results can be seen and further things can be planned accordingly.
Funding: As Greene king is already a big brand name and stable in terms of finance.
Management is planning to take their use funds from their profits and other than that short term
loan will be raised from banks for further needs.
Products and Services: The Greene king will offer the product and services which are as
follows-
 Quality food in restaurant where all the cuisines will be available in the best possible
manner.
 The Best quality of services will be offered along with this, home delivery of food will
also be a major concentration of Greene king restaurants.
 In addition to this, restaurant is coming up with major services of a different section
where reading will be facilitated. People can seat and read different books and enjoy
quality food, beverages and have a leisure time.
Licensing- There is a legal process and proper system of opening the restaurant. All the
formalities will be followed to open the restaurant in the city.
Stage 2
Design- This is the most important stage where the design of restaurant will be chosen. It will
cover its interior and exterior design. All the 10 restaurants will be same in designs so that people
can easily recognise and a fix pattern of restaurant design can be followed. Such design will be
made which can attract customers in maximum possible way.
Ambience: It will also be a major concentration which will attract people as no one likes to go to
dull and ambience. Every person wants to spend time and eat food where the ambience is good.
Stage 3
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Operation- It is very necessary part of The Greene king Hotel through which the management
will get done every stage of opening the new restaurant chain. Organisational goals is the major
reason behind this stage where it will be focus mainly to achieve the same. Operation will be
carried in such a way where all the activities will be carried as per the plans and targets that are
required to be achieved.
Legislations: Restaurant will be opened after considering every law, rules and regulations.
Operations and every other activity such as quality of food, hygiene etc. will be carried as per the
government laws. It will be done as such so that no future problems can be faced and customer
can get the best possible services.
Recruitment: People will be interviewed for the different positions as the new restaurant needs
to hire every person that are needed to carry the activities like stewards, house keeping staff,
management etc. Greene king is planning to take best people as per their knowledge, experience
and education. It will help in carrying business in best possible way.
BUDGET
Expenses Amount
Expenses for obtaining the permits and license £1000
Fee of Registration of Business £1300
Cost of hiring Experts £500
Insurance £500
Cost of acquiring facilities of Restaurants £130000
Other expenses £10000
Expenses of interior and Exteriors £15000
Building the Restaurant £150000
Total £308300
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Conclusion
From the above report it has been concluded that Travel and tourism sector is one of the
biggest sector in the world which provide services to people in various forms. Other than this
sector hospitality is that sector which provides facilities like Hotel, restaurants and pubs to the
people. Both are interrelated with each other and majorly focuses on giving the best possible
services to people. In addition to this, Integration is all about merging two or more organisation
to earn more incomes and profits by the new venture. Integration is a way to provide better
services as per the need and wants of people. Furthermore, When two organisation gets merge
with each other, it is really difficult for companies to adopt each other's culture. Majority of
organisation faces cultural clashes as every company run in their own way. It results in change in
working environment of employees.
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REFERENCES
Books and journals
Middleton, V. T. and et.al., 2009. Marketing in travel and tourism. Routledge.
Sheehan, M., Grant, K. and Garavan, T., 2018. Strategic talent management: A macro and
micro analysis of current issues in hospitality and tourism. Worldwide Hospitality and
Tourism Themes. 10(1). pp.28-41.
Vanhove, N., 2017. The Economics of Tourism Destinations: Theory and Practice. Routledge.
Mejia, C., Wei, W., Fu, X., Hua, N. and Wang, Y., 2018. Hospitality and tourism experts'
perspectives on Chinese independent tourists' US service expectations through a mobilities
lens. International Journal of Tourism Research.
Salihoğlu, G. and Gezici, F., 2018. Geography of suppliers in the hospitality sector: The case of
Alanya. Tourism Management. 65. pp.41-54.
Burke, R. J., 2018. 1. Human resource management in the hospitality and tourism
sector. Handbook of Human Resource Management in the Tourism and Hospitality
Industries. p.1.
Le, A. H., McDonald, C.V. and Klieve, H., 2018. Hospitality higher education in Vietnam:
Voices from stakeholders. Tourism Management Perspectives, 27. pp.68-82.
Cornelissen, S., 2017. The global tourism system: Governance, development and lessons from
South Africa. Routledge.
Calhoun, J. R., O’Neill, M. and Douglas, A.C., 2018. An Examination of Second Language
Education Provision Among US and European Hospitality and Tourism Management
Schools. Journal of Hospitality & Tourism Education. pp.1-10.
Koens, A. and Wood, R.C., 2017. An analysis of international employment levels in hospitality
occupations using secondary statistics. International Journal of Tourism Research, 19(5),
pp.496-504.
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