Hospitality Provision in Travel & Tourism: Industry Analysis Report

This report delves into the integral relationship between the hospitality and tourism industries, highlighting their interdependence. It explores how hospitality acts as a key supplier to tourism, providing essential services like accommodation, food and beverages, and entertainment. The report examines the impact of integration on the hospitality sector, discussing its implications on business strategies, economies of scale, and standardization. It also evaluates the role of integrity within the industry, and analyzes the benefits of integration, such as reduced costs and improved data availability. Furthermore, the report discusses target market analysis and developing a strategic plan for a hospitality business, including considerations for human resource allocation and identifying market opportunities. The report emphasizes the importance of customer satisfaction and employee training in ensuring success within the competitive landscape.

Hospitality Provision in Travel & Tourism Sector

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1.1 Relationship between hospitality and tourism industry......................................................1
LO 2.................................................................................................................................................5
P2.1 Evaluate the implications of integrity on hospitality industry............................................5
P2.2 Analyse the impact of integration on hospitality business..................................................8
LO 3...............................................................................................................................................10
P3.1 Develop a rationale to clarify the decisions linked to target market.................................10
P3.2 Developing a plan for hospitality business......................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES:.............................................................................................................................16

Illustration Index
Illustration 1: interrelationship between tourism and hospitality industry......................................4

INTRODUCTION
In according to define hospitality industry in PKF, it is necessary to understand what is
it ? This is one of the most important factor of tourism industry. Without this, tourism industry
does not exist. It helps in to promote the products' ans services given by tourism industry.
Furthermore, the interrelationship between these both industries also explained. There are some
common features related to the products and policies. There is a strong impact of integration on
the hospitality industry. Changing the concept and policies of hospitality industry is affect the
policies and strategy of tourism industry as well. Impact of integration such as scale of
economy, standardization and quality. Integration also affect the functions of tourism industry. A
rational can be developed to interrelate with target market and include some aspects such as idea,
market research, target market and target location or size of a business. Developed plan is also
described for a hospitality business which involves needs and requirements of the structure of
any organisation related to the human resource allocation. There are different strategies and
appropriate methods to identify the opportunities for hospitality industry and tourism industry as
well(Leung, Xue and Bai 2015.).
LO 1
P1.1 Relationship between hospitality and tourism industry
There are different division under tourism industry which is being catered by hospitality
industry only. Like if a family goes on a holiday tour and they travelled through airlines then
airlines' comes under hospitality industry. They stay in a hotel then hotel comes under hospitality
industry. It means overall we can say that hospitality industry is act like a supplier of a tourism
industry. Tourism industry is incomplete without hospitality industry. These industries provide
facilities to the customers who is travel for the enjoyment. It flourishes the activities of tourism
industry. Customers travel for their refreshment, to change the mind set and to have some fun.
For this they require some facilities such as accommodation, food and beverages, entertainment
and so on. PKF company take care of all activities starting from travelling to staying and related
to many other activities. They made a package in which they pre determined that what will a
person or a company do when they are on a tour. Hospitality industries ensure that all tourists
get best of the facilities with affordable price(Leung, Xue and Bai 2015.). . They also take care
of those persons who over drunk on the tour. The main motive of these industries are to satisfy
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the customers who are using their product or service. PKF industries well trained their
employees so that they can handle customers nicely and politely. Take care of all the things
whether it is small or big because customers who are using these things wants to take advantage
of things offered to them. Satisfied customers will be the repetitive customer of your company
and he will also increase the customer potential of your company. Hospitality organisations are
the most important factor in travel and tourism industry(Leung, Xue and Bai 2015.). .
Interrelationship between hospitality and tourism industry can be explained through these
points :
 Package holidays : The role of hospitality industry in package holidays of tourism
industry is very significant. Hotels which provide facilities to the customers under tour
package is ultimately depend on the price offered in a tour package. Customers may
choose any offer package such as 3 star accommodation or accommodation on room only
basis. Travel agents regularly take feedback of their clients to be ensure that they have
been enjoying and experiencing through their stay(Law and et.al., 2015 )
 Aviation : the success of airlines are depended upon the accommodation availability.
Airlines may lose their business if accommodations are not available. Flying to small
destination place is such a serious problem. Airlines must analyse the situation of
accommodation regarding flight times and bed availability. Budget airlines are also the
part of aviation which offered all facilities such as food and beverages and so on.
 Business travel : business peoples are chosen the accommodation of luxurious facility
with the work comfortably. They search those hotels which provide internet access and
business centres. PKF group also interrelate with catering facilities because they prefer
some of the best restaurant to impress their business associates. Today's competitive
environment force the tourism industry to provide business facilities to their customers or
clients. They spend the money which is offered to them by their company and through
this, they choose best company for their luxurious accommodation. Business class is an
essential factors for both hospitality and tourism industry.
 Conferences : these factors are also crucial for travel and tourism industry. It includes
exhibition facilities as well. Through this, customer can view the product before buying
it. The ITB refers international tourism bourse is one of the biggest exhibition which
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attract the customers from over the world. Conferences generally hosted at the hotel
where the event will be established.
 Visitor attractions : attraction means anything which get air through talking of the people.
It may be in form of man made creation or natural attraction. Man mad creation such as
museum or wax museum and natural attractions such as natural parks. Theme parks are
one of the most attractive place for the tourists. Most of the theme parks have their own
restaurant and cafes, which provide services to their customers then get back to having
fun. Tourism companies provide these features in their holiday package to attract the
customers and force them to buy their product only(Leung, Xue and Bai 2015.). . Apart
from these, some places are easily taken place in interest to people because of the
attractive activities which is done there. Rather, then theme park, wax museum are now
in trend. It is man made creations. Most of the customers are attracted by the view of
these museums.
These both are one of the most growing industry in the competitive market. Scope of the
hospitality industry is as below :
 Employment tourism
 Increasing tourists
 International technologies
 Communication technologies
 Medical tourism
 Growth in economy
 Foreign direct investment
Scope of hospitality and tourism industry can be explained by following points :
 TRAVEL : it includes air, rail, cruise, coach, auto and ecotourism.
 LODGING : it includes hotels and motels
 RECREATION : it includes gaming, attractions, parks and recreation.
 MEETINGS
 CONVENTIONS
 EXPOSITIONS
 RESTAURANTS
 MANAGED SERVICES
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Interrelationship can be done through steps such as principals, wholesalers, retailers and
consumers. Principals include accommodation providers, attractions, transport and ancillaries.
Wholesalers include tour operators, mass market and specialist. Retailers include travel agents,
multiple, online and call centres. Consumers such as business, leisure, visiting friends and
relatives and others. Common goal in both industries is to provide desired or necessary products
to the customers and satisfied them(Leung, Xue and Bai 2015.). . Concept of hospitality is also
affected the strategy of tourism industry. Many concepts and plans are interdependent in both of
the industries. Products of the industries are intangible and perishable. Each business do not have
business hours. Promotional activities plays an important role in hospitality industry and in
4
Illustration 1: interrelationship between tourism and hospitality industry
Source : interrelationship2016 <https://www.slideshare.net/amarayya-hiremath/hospitality-
marketing-ppt>

tourism industry as well. These both organisations are interrelated and also affect the structure
and policies of both organisations. Cultural diversity is a main conflict in both of the industries.
Because many of the people are working together from various culture and various areas.
LO 2
P2.1 Evaluate the implications of integrity on hospitality industry
Hospitality industries are one of the fastest growing industry in terms of development.
There are different reasons which make it conquer in the competitive market such as :
 it provides best services to the customers
 providing customer satisfaction
 providing medicals services
 hospitality industries are helping in to promote the products and services of travel and
tourism industry by giving knowledge to the public about the products offered by
tourism industry so that the demand of the product has increased. Due to integration
between tourism industry and hospitality industry, it helps in run smooth working of an
organisation of PKF group. Acceptance of integration can provide a huge advantage of
competitive market. It integration is in horizontal form to maximize the profit and further
advantage. It requires good integration system to give better quality and best service to
the customer. Hospitality industry merge itself in tourism industry to take advantages
and make customer satisfied. Integration system is applied in both forms such as
horizontal and vertical system. By the integration process, there are many advantages to
hospitality and tourism industry such as :
 reduces in travelling expenses and transportation cost of PKF group.
 It solves the complexities which identify at the earlier stage of investing.
 Various information and data are available due to integration.
 Decrease in managing cost of a traveller of PKF group.
 all the facilities which requires are available at one place.
 with the helping of vertical form, all the activities can be managed.
 Handling cost are saved.
 Reduces the transferring charges.
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There has been different type of complexities and conflicts arise due to integration in PKF
group. Because both of these industries have different strategies and policies or mission and
vision as well. It is necessary that all the services are same at all the places. Anything less will
not be acceptable. It will harm the reputation of business as well. Small businesses have to face
many problems due to integration. But it can have bad impact on society because it is not good
for small business and it harms the small scale businesses as well. They can throughout those
smaller business from market. Integration process will affect the activities of hospitality
industries and PKF group as well. It will help in to do better tasks and increase the efficiency of
productivity. It also secures the methodology of the organisation. Which enable the firm to
enhance the usefulness of its resources and the productivity of business firm. With the help of
horizontal and vertical system, it can easily gain the effective product and services or process of
these both approaches. This coordination also help organisation to show signs of improvement.
Integration is a process of enlarging their presence and enhance profit margin through product
and market development. This process has a feature of repetitive factor. It is repeated by the
organisation to gain profits. Organisations should knowledge about the processes and the
operations conducted in integration process. With the helping of this integration, hospitality
industry can extend its product line which related or unrelated to the business. This is a part of
strategy in every organisation. Every organisation have to adapt the integration strategy to offer
better services and maintain current base of customers. PKF group is also using this integration
concept. PKF group business can improve the quality and reduce the cost of its factor. There are
two different forms of integrations which has discussed above. Hospitality industries are using
horizontal integration. They offer one type of product and service. Explanation of these
integrations :
Horizontal integration : it is when two companies combine together, it is where one industry
which provide a product or good takes over another industry who offers similar products. The
Best example of this integration is FIRST CHOICE GROUP of industry. It covered first choice
hypermarket as well as first choice travel agency. It is in horizontal integration because the
buying chain of these industries are same level.
Vertical integration : it is when one industry extend its organisation into a different variety of
areas. In this an industry buy another organisation even if it different level of chain. The best
example of this integration is VIRGIN GROUP of industry. It covers virgin group and
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partnership with stagecoach. In tourism industry, two companies take over one another to
identify various ways to increase the sell of their products and services to their customers.
Core business can be divided in three aspects such as forward integration, backward
integration, diversification. Forward and backward are the vertical integration. Horizontal
integration does not add the values automatically in the existing business. Through this company
can not gain value added advantages(Brandon-Jones, Lewis, Verma and Walsman, 2016). This
is the reason that horizontal integration affect negatively to the organisation. It also affects the
business performance. Horizontal integrations follow four of the potential drivers in value
creating such as ;
 explore the economy scope
 stretch the management competences
 explore internal process
 increase market power
by exploring the economic scope, PKF group increases the efficiency by applying existing
strategies in the new market. It allows the company for optimum utilisation of resources. The
competencies and capabilities are not fully utilised by companies. Second potential drivers
concern the utilisation of skills of their talented employees. It is useful in to implement new
activities. Vertical integrations engage two types such as forward and backward. In forward
integration, company will achieve the ownership of the distributors and in backward integration
company will achieve ownership of its suppliers. Company can use both of these strategies to
maintain the balance of integration strategy. There are different advantages of vertical integration
such as ;
 increased competitiveness
 control on its process
 raise marketing share
 increase coordination between supply chain
 decreased cost
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P2.2 Analyse the impact of integration on hospitality business
Integration can be affected by different types if issues or factors. It helps the organisation
to know about the current and recent scenario of the market. It is the most important factor to run
the business smoothly and in advancing the existing structure of the organisation(Brandon-Jones,
Lewis, Verma and Walsman, 2016).. Due to competitive market, the integration must be
conducted to acquire higher range of profit. Impacts of integration on PKF group can be
explained through following points :
 scale economy
 standardization
 quality
Due to integration, company can reduce the operating cost at a significant level. Many of the
hospitality industries are providing best services and offer due to emerged. It also gains benefits
from it. Standardization is a very hard process to implement. Standardization of elements would
be easy but of human resources made it complex. PKF group company has a standardized
process, in which customers have same environment and same procedures at any branch. It is
required to be strict and smart working with hard working skills to maintain the levels for all the
branches. Quality increment is not guaranteed in integration process. It depends upon the
elements involved in the process. Some employees do not accept the changes in the policies or
their new boss. Management is continuously contact with the customers to ensure about the
demand of the customers. Integration can affect the functions of business. Impact of integration
can be understand by following points :
 By the merging of two companies, company will get a huge amount of benefit by
satisfying all the customers.
 With the merging process, it will create the monopoly in the market. It will reduce the
competition level in the market. Thus, customers do not have choice to choose the
companies to purchase something.
 It provides contribution in the economy of country. It benefits the economy in many ways
such as it reduce the operating cost.
 Cost of the product and expenses of the organisation will be reduced as well.
 Increase the income and revenue of business.
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 Rewards and incentives are increased due to reducing the cost and expenditures.
 Plans and policies will be made according to the needs and preferences.
 Increasing the effectiveness and efficiency of productivity.
 Business will get more values and reputation in the market.
 The Best optimization of resources.
 It identifies the problems and solve them at the earlier stage
 training and development could be managed properly.
 Maintaining dynamic structure of PKF group.
 Flexibility exist.
 Provide informations which is required.
 All the informations can be displayed on the website.
 There are many advantages due to integration but in other hand there are various
disadvantages as well. As it decrease the cost and expenditure but it has also decreased
the quality of the service. It has affected the tourism organisation(Brandon-Jones, Lewis,
Verma and Walsman, 2016).. To overcome the disadvantages of the integration,
companies are focusing on optimum uses of resources to improve the quality of product
and service as well as also gaining the advantage of competitive market. There are
different factors which is affected by integration such as :
 lack of knowledge
 cost integration
 using technology
due to integration, employees can not get all the information about the product and service which
should be offered to the customers. Because of the wide area and complex process of various
services and products. It is also affected the performance level of employees and efficiency of
productivity. Lack of knowledge about the environment also cause many difficulties to the
organisation(Leung, Xue and Bai 2015.). . Cost area is mostly affected by the integration
process. Company is not able to plan an effective strategy of different services and products.
There is increasing in the expenses to provide training and development to the employees. Due to
these expenses, company do not maintain its position in the market and not able to gain stable
profits. Integration also affect the financial process of business because it required huge amount
of investment to achieve objectives. There is lack of providing technical knowledge to the
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employees in PKF group and that is why it has been delaying in decision making process.
Technology is the factor which provide information about the macro environment in just few
seconds. Because of the integration, the area has been wide and vital, due to these employees can
not get accurate information because of complex process and level of hierarchy exist in an
organisation(Brandon-Jones, Lewis, Verma and Walsman, 2016). As the result, company can
not achieve the objectives in success manner. It affects the service quality and productivity
overall. Tourism companies are using vertical approach as well as horizontal approach. It affects
on : work process, on employees and on the methods using in gather experience. Integration is
also affected the system of expert such as effect on the process and employees of retail stores.
The most important benefit of integration is company gain competitive advantage. Combining of
two strong companies can satisfy the customers more effectively and attract them to their
products. Economy of scale can be achieved through integration process. It identifies the
problems and conflicts and then helps in to solve them. It measures the standard performance and
actual performance of an organisation by which company get to know about the areas or factors
which should be improved and more focused. It also helps the business in diversify its
organisation into many countries. By diversification, company can expand its area and its
channels of distribution. It helps in to generate new ideas and innovations in existing product or
in new products. Company can offer new services in the existing market or can launch new
product in new market. Through this, company can increase the customer base and customer
potential. Which ultimately increase the profit margin of a PKF group business.
LO 3
P3.1 Develop a rationale to clarify the decisions linked to target market
The hospitality sector is growing at rapid rate. Now small business are focusing on
providing services in this sector (Sucher and Cheung, 2015). It is because of hospitality in
included in tourism sector, thus it has resulted in development of variety of services to people.
This is the reason many business are emerging in this sector. It has created a platform through
which small business can grow and expand. They are providing both hospitality and tourism
services to people. Also, it has enabled people to use those services. It has attracted large umber
of people towards this. The business development plan is described below :-
Stage 1 - Development
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Concept- A plan is developed to open a restaurant cum hotel. It will comprise various kinds of
service that can be provided to people under one roof. The man purpose is to provide high
quality services to people who belongs to middle and lower class people. It will provide services
so that people can get the feeling of semi luxurious services (Whitelaw, Benckendorff and Jose,
2015). The focus will be on providing all accommodation services exist in travel and tourism
sector. Firstly. It will be open in London city and then business will be expanded in other areas
in UK.
Market research – A market research is required to identify potential areas of growth. It helps
in analysing current trends in market so that products and services can be produced accordingly.
In this business market research will be done by taking feedback from people with the help of
questionnaires. This will help in collecting data so that needs of people can be identified. Besides
this, it will help in finding out change in taste and preference of customers. The questions asked
will be related to topics such as quality of services, satisfaction level, price, location, etc. targeted
people will be middle and lower class. Sample size will be 500 (Inancoglu and Yuksel, 2017).
Target market- It is been already discussed above. People will consist of all caste, creed, etc.
Research will be conducted in major tourist destination areas.
Location – It will cover major tourist areas such as Buckingham Palace, tower of London, big
Ben, etc. where large number of people visit every year.
Scale- there will be total 180 rooms in hotel. Air conditioner rooms will be 50 and non air
conditioner rooms will be 130.
Funding – The total investment will be done by funding that is taking loan from bank.
Products and services
 180 rooms with air conditioner and 50 rooms without air conditioner
 Restaurant and bar services
 Housekeeping services
 Local guide for help
 Conveyance facilities to pick and drop from airport
Licensing – the business will be total done in legal manner (Manhas and Tukamushaba, 2015))
Hotel will be registered under government.
Rationale can include idea, market research, target market and target location and size of
the business.
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P3.2 Developing a plan for hospitality business
Hospitality sector is entirely dependent on its exterior and interior design and the
environment that gives customers to spend their leisure time. Customer gets attracted to hotel
design and quality of services. The internal environment must be soothing so that it customer can
feel relax and comfortable. Customer first comes in contact with hotel ambience and design.
With this they get to know how hotel environment will be. An attractive and unique design will
help in increasing customer satisfaction and retaining them. The design of hotel is specified
below :-
Stage 2 -Design
Ambience- the hotel ambience will be pleasant and reflect green environment. It will help in
attracting people to large extent. Restaurant will consist of TV, bar, etc. (Lampinen and
Cheshire, 2016). Roof top dinner facility will also be available. Walls will be printed with 3- D
paintings and modern art.
Culture- the culture of hotel will reflect a resort like environment. It will also include a green
environment in which people will feel connected to nature. Besides this, restaurant will be
having modern art and paintings. The dress cod of waiters will be unique. It will depute
traditional way of delivering services.
Interior – The interior of hotel will reflect traditional environment. Rooms will be decorated
with 3 -D traditional art and paintings. Each room will be having quotes written on walls. There
will be attractive lighting in rooms and passage (Yusof, Zahari and Ghani, 2017) This view will
be eye catching for customer who are visiting hotel. Bathrooms will contain bath tubs,
accessories, etc. along with this, passage will be covered with small plants. Balcony will be
having green carpet and plants.
Brand – the hotel will focus on providing semi luxurious services at low price. A website will be
create to solve issues related to customers.
Exterior – exterior of hotel will reflect a beautiful lake side view. Windows of rooms will be
covered with glass. This will allow sunlight to enter so that customer feels comfortable.
Functional areas- there will be different functional areas in which hotel will operate. The main
will be delivering timely services to customers. For booking, services will be provided online.
There will be a help desk where customer problems will be solved. It will help in increasing their
satisfaction and retaining them (Fong and Yap, 2016).
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Customer flows- The passage and doors will be spacious enough so that customer can easily
enter and exit. There will one entry door and one exit door.
Link to target market – services and design of hotel will be created in such a manner that it
reflect middle and lower class people.
Customers with individual needs – There will different facilities and rooms for customer who
are having separate needs.
Sustainability- It is very important for hotel to remain survive in the market for long term. This
will be done by improving service quality (Papargyropoulou, Wright and Ujang, 2016). Also,
in initial stage offering high discounts to people. Moreover, in festive seasons like Christmas and
New year organising parties, concerts, etc. these all will help in attracting large number of
people.
Stage 3 – Operation
Goals and objectives can only be achieved by performing operations in effective way. For
this management needs to develop plan on what task will be done by whom and when. There are
various operations performed in hotel that are staffing, promotions, etc. it will help in smooth
flow of operations and thus improving quality of services (Peters and Kallmuenzer, 2018) Also,
providing services in right time. This will increase customer satisfaction. The operational
services of hotel is described below :-
Staffing by functional areas-- the employee working in hotel will be recruited on the basis of
bachelor degree in hotel management.
Specialist qualifications- those candidates will be preferred who have done bachelors in hotel
management. Moreover , candidates that has done PH. D will be given first preference. They
must be having strong interpersonal skills. Chefs must have experience of 4-5 years in cooking.
Staffing issues related to seasonality – During festive seasons and high workload staff will
have to perform more duties and tasks (Sucher and Cheung, 2015). There will no more staff
recruited for this. Thus, on this basis incentives and bonus will be given to them.
Cultural diversity and ways to deal with conflicts- A better and effective culture is required to
maintain quality of services. For this, it is necessary to resolve conflicts and develop strong
communication between staff. In hotel no discrimination will be done. Staff views will be taken
to solve any conflicts or issues.
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Recruitment policies and procedures-- Policies will be developed by HR department
recruitment of employees. In this no discrimination will be done. Each employee will be treated
equally and provided equal opportunities for growth (Whitelaw, Benckendorff and Jose, 2015).
Proper and effective training will be given to them. Equal chances of employment will be there.
Compliance with legislation- Each policy developed will be compliance with legislation. There
will be several acts in this like health and safety act, equality act, no discrimination act, etc. other
than this, actions and measures will be described in case of any fraud or illegal activities
performed by employee. Hotel will involve in CSR activities and protecting the environment.
Promotional activities- An effective marketing strategy will be developed. In this there will be
several promotional methods of advertising hotel business. Firstly social media will be used for
promoting this (Inancoglu, and Yuksel, 2017) In this a page will be created on networking sites
such as Instagram and Facebook. Besides this, a website will be crated so that people can easily
know about this hotel. Also, it will be easy for them to see rooms structure by seeing images.
Apart from this, promotion will be done public relations.
Pricing- The pricing policy of rooms will set accordingly to facilitates and services provided.
Generally, it will have price of 3 star hotels (Manhas and Tukamushaba, 2015).
it also includes concept of business, market research, target market, location, scale,
funding, products and services, and licensing. Furthermore, it includes finance, front line staffs,
housekeeping staffs, security staffs, supervisors, management team and managers, transport
system and staff in food and beverages.
CONCLUSION
From above report, it can be concluded that tourism industry is alive just due to
hospitality industry. Hospitality industries provide different types of facilities to the customers
who are on travel to satisfying them with the best quality of the product and service. Mainly
people coming on the tour for specifically spend holiday or for business activities. Requirements
are different as per the objective of tour(Leung, Xue and Bai 2015.). There are different
implications of integration on hospitality industry as discussed above. There are similar
characteristics between both of these industries and bot are interdependent industries. Hospitality
industries gain advantages form tour industries and tour industries can fulfil the requirements of
customers through hospitality industry. Furthermore, there are different methods and techniques
14

used to identify the opportunities to expand the business by PKF group. Developed plan for
hospitality industry to find the needs or the business organisational structure with allocation of
human resources. How an integration is affected the hospitality industry is also described. Scope
of these both industries are wide and broad. Scale include increasing tourists, medical tourism,
tourism for awareness, growth in economy, foreign direct investment and product mix. Product
mix within hospitality industry is covered all 7 P's of marketing mix such as price, product,
place, promotion, people, process and physical evidence(Leung, Xue and Bai 2015.). .
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