UK Hospitality in Travel & Tourism: Integration & Business Plan

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This report provides a detailed analysis of hospitality provision within the travel and tourism sector. It begins by examining the interrelationships between hospitality and the broader travel and tourism businesses, highlighting the role of hospitality in underpinning various tourism services such as business travel and aviation. The report then delves into the implications of integration, both vertical and horizontal, on the hospitality industry, discussing the importance of branding, pricing policies, and the competitive strategies of independent establishments. Finally, it presents a rationale and development plan for a selected hospitality project in the UK, including operational requirements, human resource allocation, and an organizational chart. The report concludes by emphasizing the critical link between hospitality and travel and tourism for sustained growth.

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Table of Contents
INTRODUCTION........................................................................................................................ 4
TASK 1...................................................................................................................................... 5
THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER TRAVEL AND TOURISM
BUSINESSES.......................................................................................................................... 5
TASK 2.................................................................................................................................... 11
THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY INDUSTRY.............................11
HOW INTEGRATION HAS AFFECTED A HOSPITALITY BUSINESS..........................................13
TASK 3.................................................................................................................................... 15
RATIONALE DEVELOPMENT FOR A SELECTED PROJECT......................................................15
DEVELOPING A PLAN FOR A HOSPITALITY BUSINESS INCLUDING THE OPERATIONAL
REQUIREMENTS IN RELATION WITH THE HUMAN RESOURCE ALLOCATION WITH AN
ORGANIZATIONAL CHART..................................................................................................17
CONCLUSION.......................................................................................................................... 22
REFERENCES........................................................................................................................... 23
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LIST OF FIGURES
Figure 1: Marriott Hotel........................................................................................................... 6
Figure 2: Restaurants............................................................................................................... 6
Figure 3: Pubs and Bars...........................................................................................................7
Figure 4: Nightclubs................................................................................................................. 7
Figure 5: Overlapping of hospitality and tourism industry.....................................................9
Figure 6: Organization structure........................................................................................... 17
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INTRODUCTION
The hospitality industry is one of the wide groups of the service industry which involves
event management, lodging, transportation, cruise line, theme parks and extra areas
contained by the tourism industry. It is a multi-billion-dollar industry which is based over the
disposal of leisure time as well as disposable earnings. There are various hospitality units
like hotels, restaurants, bars and clubs, or amusement parks comprising different parts like
direct operations and facility maintenance (housekeepers, servers, kitchen workers,
bartenders, human resources etc.). The travel and tourism is an important and ever-growing
part of the hospitality industry which also provides hospitality services to the outside
visitors. Under this assignment in the first task, an article is presented on the role of
hospitality which is also encircled by the travel and tourism sector. In the next task, the
different impacts and influences of integration are depicted within the hospitality
businesses and industry. Finally, a business development plan is presented in the context of
the hospitality industry of the UK.
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TASK 1
THE INTERRELATIONSHIPS BETWEEN HOSPITALITY AND WIDER TRAVEL
AND TOURISM BUSINESSES
THE ROLE OF HOSPITALITY INDUSTRY WITHIN THE TRAVEL AND TOURISM SECTOR
The hospitality industry is the industry which covers a variety of food businesses along with
the requisite services in the industry. The hospitality sector involves a range of hospitality
units providing the community with the services of meals, drinking water services, lodging
facility external to the home. These facilities provided in different units and settings like
hotels, restaurants, pubs, bars, clubs, and other types of hospitality facilities. The hospitality
industry of the UK is growing at a very fast speed because of its attractiveness all around the
world and the more earnings generation capacity of the sector. The UK's hospitality industry
is the fourth largest industry which provides employment to the UK people with 3.2 million
jobs. As the industry is growing in the past 3 years from 2014 to 2016, it is showing potential
to generate around 500,000 new employment up to 2021 (Tribe, 2011). The hospitality
industry is free from biasness and it is one of the major employers in every nation and
region of the UK.
COMPOSITION OF THE HOSPITALITY INDUSTRY
Before understanding the relationship of the hospitality industry with the travel and tourism
sector it is necessary to gain knowledge about the different units of the hospitality industry.
HOTELS
Hotels are the establishments which facilitate with the paid accommodation for a short-
term tenure. Hotels may provide a variety of services and lodging from a small room with
quality mattress accommodation to the large suites having world-class facilities. The small or
lowered price hotels deliver the basic visitor services. On the contrary, the larger or high
priced hotels facilitated with additional services like swimming pool, childcare facility,
business centre, gymnasium, day spa, social function etc (Swarbrooke and Horner, 2012).
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Figure 1: Marriott Hotel
Source: Best Design Guides, 2013
RESTAURANTS
Restaurants or eateries are the businesses which make and serve meals, food items, and
drinks to their customers in exchange for the money. Meals are usually eaten and served in
the premises only but several restaurants provide facility to take-home and food delivery
services also. Restaurants may vary with their offerings and appearances, comprising a large
range of service models and cuisines (Swarbrooke and Horner, 2012).
Figure 2: Restaurants
Source: Coast, 2018
PUBS AND BARS
A pub is that organization which has a license to sale alcohols and drinks (e.g. beer & cider).
A bar is a place which serves alcoholic beverages like wine, beer, cocktails, liquor, and other
drinks like soft drinks and mineral water (Mok, et al. 2013). These beverages may serve with
snacks and food items.
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Figure 3: Pubs and Bars
Source: BBC, 2018
NIGHTCLUBS
A nightclub is an entertainment place and bar which is generally operated late in the night.
It is different from the pubs, taverns, bars, by addition of a stage for conducting live music,
with dance floor and a DJ facility.
Figure 4: Nightclubs
Source: imbibe.com, 2015
CONTRACT FOOD SERVICE PROVIDERS
These are the companies which give catering services to other organizations, companies or
people. They generally serve the food facility to a large group of people for example
business industry, colleges, schools, health care units, public and local authorities, and non-
profit organizations such as army forces, ambulance facility, police etc (Brotherton, 2012).
HOSPITALITY SERVICES
Hospitality services also called “hospitality exchanges” or “accommodation sharing”. It is
centrally organized social services networked by the travellers who deliver or seek lodging
facility for money.
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TRAVEL AND TOURISM SECTOR
One of the important sector or part of the hospitality industry is the travel and tourism,
which provides various categories of services and facilities in their respective areas of the
travel and tourism. Let’s understand the services of the travel and tourism sector:
TRAVEL SERVICES &TOURISM SERVICES
The different services provided by the travel and tourism sector to their visitors include
tickets arrangements, travelling and lodging facilities, tour operator and booking services
etc. there are several retail travel agents acting as brokers between the customers and tour
operators. The tour operators and travel agents help the tourists through their holiday trips
and packages and make promotions on their services using brochures and ad campaigns etc
(Cook, et al, 2014).
CONFERENCES AND EVENTS
Conferences are the wide-scale facilities enclosing lodging facility for a large group of people
at a given period of time. These accommodation arrangements are conducted in a built-up
building having large halls and rooms for organizing the meeting. Conferences could also be
conducted in open big areas such as the marquee or in the large portion of the gardens.
Events are those plans and programs which are conducted by an individual or a company
such as dinners, parties, conferences etc. (Rogers and Davidson, 2015)
VISITOR ATTRACTIONS
Visitor's attractions comprise of various eye-catching and heritage attraction places such as
ancient monuments, amusements parks, state homes, recreational activity places, etc. They
are termed as visitors attractions as these places attract the tourists and visitors to often
visit the places again and again (Swarbrooke and Page, 2012).
ACCOMMODATION SERVICES
The travel and tourism industry also facilitate the visitor with the lodging facility.
Accommodation not only includes the bedroom services but also provides areas for
conducting functions and conferences. The bedroom lodging and accommodation served
with many facilities from cleaning to good food facility (Aldebert, et al, 2011).
PASSENGER TRANSPORT
The travel and tourism provide facilities for transport also through various means like
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roadways – bus, motor cars, bikes etc. rail transport, airlines, and other water transport
ways like ships and boats etc.
INTERRELATIONSHIPS BETWEEN HOSPITALITY AND TRAVEL AND TOURISM
There are several types when hospitality and tourism both are considered to be as one
industry but in reality, both are different from each other however both industries could
overlap with each other in form of various services and units. The role of hospitality is
significant in underpinning the various type of travel and tourism services as follows:
BUSINESS TRAVEL
The hospitality’s role in underpinning the business travel of the tourist is significant this
business travels could be in the form of exhibitions, get-togethers, official meetings etc.
These business travels are generally conducted by corporate companies by making contacts
with the tour operators or service providers.
Figure 5: Overlapping of hospitality and tourism industry
Source: Oxford Economics, 2015
AVIATION
The aviation is that hospitality business which is very close to the travel and tourism of the
country. These services are provided by different travel agents or tour operators such as
Thomas Cook and TUI etc. TUI is providing their own managed airline facility and aviation
services. Their hospitality is seen in easy online booking services on the personal devices.
The hospitality industry role is very essential in underpinning the various other services of
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travel and tourism like conferences and exhibitions, visitor attractions and theme parks etc.
In conclusion, the hospitality industry is highly interlinked with the travel and tourism
industry and for sustaining the growth of travel and tourism by means of various services.
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TASK 2
INTRODUCTION
The hospitality industry of a country is highly dependent on the big scale organizations
aiming towards providing a high-class quality service to their guests or customers. These
make integration essential for a hospitality business within the periphery of the travel and
tourism sector. The integration will cater opportunities for the small as well as large scale
businesses to grow and expand with a needed pace. This management report develops an
insight into the impacts and influences of the integration on the hospitality units in the
current scenario.
THE IMPLICATIONS OF INTEGRATION TO THE HOSPITALITY INDUSTRY
BODY
In the current competitive business scenario, the competition among the hospitality also
raised with a greater speed and becomes highly fierce, which makes companies lower their
costs and improve their sales. The cut-throat competition makes the hospitality businesses
to adopt the growth strategies. This report focuses on the integration strategy in the
hospitality business.
Integration strategies are broadly categorized into two types:
VERTICAL INTEGRATION
Vertical integration is the collaboration of two organizations which are operating at different
levels of the production, for example, a food producer and a supermarket chain. The level to
which a company acquires its forward suppliers or backward suppliers is called to be as
vertical integration. This integration put a substantial impact on the position of the business
organization in its respective industry in regard to differentiation, cost and other additional
strategic matters (Joskow, 2012). The scope of vertical integration of the company is a vital
factor in the corporate strategy of the company. TUI and virgin are the best examples of the
vertical integration.
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When a firm wants to capture its downstream suppliers it is termed as forward integration
and when a firm makes expansion by capturing its upstream suppliers it is termed as
backward integration.
HORIZONTAL INTEGRATION
Horizontal integration is the merging or collaboration of two businesses which are at the
similar level of production, for example, Hilton Hotels and Starwood Group. Horizontal
integration is the expansion of the company operations into different geographical locations
or by making an increase in the variety of services and products which is delivered in the
existing markets (Hassan, 2013). It also includes the acquisition of the other firm in the
similar industry but it should also happen on the ground of changes and modifications in the
company’s existing products and services.
IMPLICATIONS OF INTEGRATION IN HOSPITALITY INDUSTRY
The following are the implications of the integration on the hospitality businesses:
 Importance of branding and pricing policies:
One can see the major segmentation in the hotel industry where the role of branding
is very significant for covering the hotel industry market share. The segmentation in
the hotels is seen in form of budget and low-cost hotels to high range luxury hotels.
Branding is important could be very well understood from the launch of the new
brand in China by Intercontinental hotel (Leonidou, et al, 2013). Additionally, the
hotel may also pursue the vertical integration for reducing the cost for branded food
and services in China.
 Independent establishments joining associations to compete with the larger
organisations:
There are various independent hotels which make associations with the big brand
hotels for competing with the large hotel brands on a larger scale. Examples of which
are Wyndham worldwide has acquired the Dolce Hotels & Resorts at a value of $57
million, Greene King has absorbed the Spirit at a price of £773.6 million and
acquisition of Kimpton Hotels and Restaurants by the Intercontinental Hotels Group.
 Control and manipulation of the market:
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