Hospitality Provision in Travel & Tourism: Integration & Project Plan

This report examines the crucial interrelationships between the hospitality sector and the broader travel and tourism industries, using Carnival Corporation and Intercontinental Hotels Group as examples. It analyzes the implications of integration activities, such as mergers and acquisitions, on the hospitality industry, highlighting their effects on market control, branding, pricing, and competitive advantages. Furthermore, the report includes a detailed development plan for the Queen Line Restaurant, providing a rationale for the project and outlining its operational requirements. The report concludes by emphasizing the interdependence of the hospitality and tourism sectors and the importance of coordination for sustained growth and development.

Hospitality Provision in Travel &
Tourism Sector
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Table of Contents
Introduction:....................................................................................................................................3
Task 1:.............................................................................................................................................4
1.1 Discuss the interrelationships between hospitality and wider travel and tourism businesses
.....................................................................................................................................................4
Task 2:.............................................................................................................................................7
2.1 analyse the implications of integration to the hospitality industry........................................7
2.2: discuss how integration has affected a hospitality business...............................................10
Task3:............................................................................................................................................12
3.1: Develop a rationale for a selected project clearly justifying decisions linked to target
market........................................................................................................................................12
3.2: Develop a plan for a hospitality business which includes the operational requirements of
the..............................................................................................................................................13
Conclusion:....................................................................................................................................16
References:....................................................................................................................................17
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Introduction:
Hospitality and tourism both are that service sector which are not only generated monetary
benefits for the economy but also contributes to reducing the condition of un-emplacement.
Both hospitality and tourism are interconnected as the activity of one sector creates and supports
the business of another sector. Currently report is based on the relationship of hospitality and
tourism sector and Carnival Corporation and Intercontinental Hotels Group is taken as an
example to describe this relationship. The second part of the report is about major integration
activities which were taken place recently, to describe the importance and impact of integration
on the hospitality and tourism sector. Last part of this report is about the development plan of
Queen Line Restaurant and complete description will be provided in this report so that user can
understand all aspects of the development plan.
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Task 1:
Title: Association in the hospitality, travel, and tourism
Date:26 July 2018
1.1 Discuss the interrelationships between hospitality and wider travel and tourism
businesses
Introduction
The hospitality business is the main segment in the industry. This area helps in the advancement
of the country economy as various individuals get attracted towards the hospitality and tourism
and help with transporting inaccessible money. It is important that an organization of the country
work more on hospitality business to provide effective and efficient services to the customers
who assist in sustainability maintenance. Hospitality business has an important role in giving
elegant services to the customer’s that is travelers in the tourism industry. It is the
indistinguishable fragment of tour and travel industry and makes an imperative effect on the
results. Fundamentally, restaurants and hotels are mainly considered in the hospitality sectors
which are classified in the distinctive standards as per star rating is given to them. Tourism and
hospitality sector both makes a great commitment to the financial improvement of a country;
therefore, it is important to grow better bonding and coordination in both sectors for retaining
and attracting more tourists globally. The hospitality business and tourism industry are
interconnected in this way.
Hospitality industry role in travel and tourism
A huge part is skipped by the hospitality business in the UK tourism industry. The hospitality
industry provides supportability in the tourism business in the UK. A large number of services is
provided by the industry to attract people from the diverse areas in the hospitality business and
likewise, it is also guaranteed that help will be provided in the financial development of the
country (Ţîţu, et. al., 2016). Diverse services like food, entertainment, accommodation, and more
support in appealing more tourist’s to visit and travel to the UK which supports and assist the
tour and travel industry. Tourism is also stated as traveling done by tourists for leisure purpose or
business purpose. Tourism can be divided in small and private businesses that are functioned and
run through the hospitality sector (Benea, 2014). Likewise, if the family go for the traveling by
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airplane than the aviation industry is considered as a hospitality business.
The relation among the tourism sector and hospitality
Hospitality and tourism industry are associated with each other strongly. Both depend on each
other in some way. When various hospitality sectors are combined together than it forms the
tourism industry. Hospitality is also known by the tourism helping procedure. Services provided
by the hotel are considered under the hospitality business as the tourist living safety is ensured by
the hotels (Ţîţu, et. al., 2016). For understanding the interrelation among the hospitality and
tourism Example of carnival corporation and Dalata hotel group are taken as an example.
Intercontinental Hotels Group:
It is one of the largest hotel solutions in the UK for the worldwide tourist which is dedicated to
providing the best accommodation services to its clients. Group also helps the tourism sector by
providing quality and desired hoteling services so that they can complete their journey
comfortably and motivated to come-gain (Skripak, 2016). For example, many tourists who come
to the UK to travel the British museum wants to stay at the hotel of Intercontinental Hotels
because it has a good name among worldwide tourists for providing safe and healthy
accommodation facility. In this way, Intercontinental Hotels motivates the tourists to travel by
ensuring quality hotel services. According to the research, it is proved that safe accommodation
and healthy food is the main need for domestic and international tourists and they prefers to
travel to those places where hospitality services are appropriately available. Following services
are provided by the Intercontinental hotel group:
 Dedicated to providing quality and safe accommodation services to its respected clients.
 Provides conference halls for the business and educational meetings.
 Provides food services through its restaurant line (Skripak, 2016).
 Packaging food services are also provided by the group.
 The group has several hotels with theme parks which contribute to gain the business for the
tourism industry.
Carnival Corporation and Plc:
Carnival Corporation is one of the leading tourism organizers who is engaged to provide tourism
services to its customers. The customers of the company include business travels, family
travelers, educational travelers and more. By providing the tourism services, it increases the
business for the hotel industry (Benea, 2014). For example, an educational tour of 40 students
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was organized by the carnival and for the same; accommodation facility was provided by the
Dalata Group. In this way, business for the hoteling business was generated by the tourism
sector. Domestic and international tourists which come to travel the different places of UK
requires accommodation and food facilities as a basic need and this requirement generates
business for the hospitality sector. Different services provided by the Carnival corporation is as
below:
 Provides cruise services through its cruise line (Skripak, 2016).
 Organises different cultural and educational tours through its subsidiary traveling business.
 Offers packages for the tour of different visitor attractions.
Conclusion
It is concluded from the discussion made above that both the hospitality and tourism industry are
interdependent and have relationship exist among them. Both the hospitality and tourism
industry needs to work with each other in coordination. For providing the effective and efficient
services according to client requirement both sectors of the industry needs to work altogether.
Working together will support both the hospitality and tourism sectors in their growth and
development. Thus strong work coordination is needed by both the industries.
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Task 2:
Executive summary:
The hospitality sector is directly related with the tourism industry and a large percentage of
revenue in the hospitality sector generated through the tourism activities. As various big players
are working in this sector, activities of integration through mergers and acquisition are common
and the impact of the same is explained in this task.
Introduction:
The proposed report is based on the integration activities of the hospitality sector and will be
made to describe the impact of these activities on the hospitality and tourism sector. The report
will analyze the reasons which are motivating the integration events in this industry.
2.1 analyze the implications of integration to the hospitality industry
Integration can be defined as an event which can be made through the merger and acquisition to
acquire other business so that a business can increase its market share and revenues. Integration
is the best way to expand the business because it provides a business with regular income so no
efforts required establishing the business (Jasonos and McCormick, 2017). It enhances the size
and capabilities of the acquirer and provides to be highly present in the market. The implications
of integration can be defined as below:
(Source: Integration types in hospitality)
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(By Author, 2018)
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Vertical integration and implication:
Vertical integration is a way to enhance the capability of distribution of chain so that business
can gain higher sales and become a leader in the market. Vertical integration is the best way to
expend the supply chain of business so that maximum customers can be served through the
current and acquired capabilities (Macchiavello and Miquel-Florensa, 2016). Integration of
Intercontinental Hotels Group and Kimpton Hotels and Restaurants in which restaurant business
of Kimpton was acquired by the Intercontinental to enhance its food supply in the market is the
best example of vertical integration. Through this acquisition, Intercontinental entered in the
restaurant business and, get additional support for the food supply in the hotel business and the
same helped the intercontinental to gain the competitive advantage (Allain, et. al., 2015).
(Source: Comindwork, 2017)
Horizontal Integration and implications:
This type of integration is applied to acquire those businesses which are engaged in the same
business and activities to enhance the capability of similar supply chin. Horizontal integration is
the best way to reduce the level of market competition so that an organization can easily grow in
the market and gain more profits by reducing the pressure of competitive prices (Kudełko, et. al.,
2015). Integration of Wyndham Worldwide and Dolce Hotels & Resorts is the best example of
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this integration in which Dolce Hotels was acquired by Wyndham Worldwide to capture the
hotels and resort segment of hospitality sector which is one of the main profitable segments.
(Source: hsta321fsu, 2016)
Main implications of integration:
Market control: Integration of different organization generates positive and negative both effects
on the industry. It helps to be global but reduces the market competition which may create the
threat of control on one hand (Haartman and Bengtsson, 2015). Integration of two or more
organization is made to enhance the market share so that control of the industry can form
Branding and pricing: branding and pricing are one of the most crucial factors in the hospitality
industry. Proper branding and pricing are essential to attract and retain the customers and stay
profitable by selling the services at competitive prices (Vanpoucke, et. al., 2017).
To beat the competition: a lot of large players are working currently in the industry; integration
helps to face competitive pressure and to be stable and profitable. Integration increases the
capability and availability of resources for small organizations so that they can grow in the
highly competitive market (Craig, 2015).
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2.2: discuss how integration has affected a hospitality business
Integration is a way to mingle the two or more organizations so that they can run more
effectively and attain the goal of profitability and sustainability. Integration has both negative
and positive impact on the businesses of hospitability industry which are explained as below:
Kimpton Hotels and Restaurant (KHR) was acquired by the Intercontinental Hotels Group (IHG)
for the consideration of $430 million which was a record in the hospitality industry. By doing
this, intercontinental entered in the sole restaurant business and the impact of this merger on the
business is as below:
(Impact of integration)
Economies of scale:
Economics of scale says that per unit cost can be reduced through the increase in production and
sales. EOS is one of the major benefits which were received by the integration of KHR and IHG
as sales of IHG were increased and per unit production and operations were decreased (Freeman,
et. al., 2018)
Fewer big groups:
By the integration number of competitors reduced and a few organizations were left after this
merger which can be competitive for the Intercontinental Group. With the help of integration,
condition of competition can be reduced significantly which will increase the chance of
profitability but a risk of market control in few hands (Vanpoucke, et. al., 2017).
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Improved quality: integration increases the availability of resources because working knowledge
of two organizations works together to achieve common goals. It helps to identify old mistakes
and improve the quality of services and products (Alleva, 2014). By the integration of
Intercontinental Group and Kimpton Hotels, the group was able to provide services with more
quality to gain the maximum number of clients.
Market share: integration combines the business of two organizations and increases the market
share of the combined business. After the integration of Intercontinental Hotels Group, the
market share of the company was increased and the company was able to cover more share of
market business (Vanpoucke, et. al., 2017).
Globalisation: It is a major benefit of the integration events which is available for a business.
Various small businesses which have limited resources and scope of growth can integrate their
business to get the benefit of globalization. After the integration, Intercontinental Group has
become a leader in the worldwide market in the hotel and restaurant segment of the hospitality
industry.
Conclusion:
The explanation made in above report is about the integration events and made to give the
understanding of integration for the companies of the hospitality sector. The benefits and
possible threats which may arise due to integration events are explained in this report. Impacts of
integration on the business of hospitality sector are explained in this report through the example
of the integration of Intercontinental Hotels Group (IHG) and Kimpton Hotels.
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