Hospitality Provision in Travel & Tourism Sector: A Project Report

Desklib provides past papers and solved assignments for students. This project explores hospitality's role in travel and tourism.

HOSPITALITY PROVISION IN TRAVEL & TOURISM SECTOR
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Contents
Introduction......................................................................................................................................3
Task1................................................................................................................................................4
LO1. Understand the role of the hospitality industry within the travel and tourism sector........4
1.1 Discuss the interrelationships between hospitality and wider travel and tourism businesses.
.....................................................................................................................................................4
Task2................................................................................................................................................7
LO2. Understand the impact of integration within the hospitality industry................................7
2.1 Analyze the implications of integrations in the hospitality industry.....................................7
2.2 Discuss how integration has affected a hospitality business...............................................10
Task3..............................................................................................................................................13
LO3. Be able to plan the development of hospitality businesses..............................................13
3.1 Develop a rationale for a selected project clearly justifying decisions linked to target
customers...................................................................................................................................13
3.2 Develop a plan for a hospitality business which includes the operational requirements of
the business' organizational structure in relation to human resources allocation. An
organizational chart should also be included.............................................................................15
Conclusion.....................................................................................................................................19
References......................................................................................................................................20
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Introduction
This project is about the hospitality provision in the travel and tourism sector. Hospitality
industry’s role within the tours and travel sector has been described. There is strong relationship
between hospitality and travel and tour business which has been explained in detail. Analysis has
been made about the integration’s implications for the hospitality industry. Discussion regarding
the integration effect on hospitality business has been mentioned. There are both positive and
negative effects of vertical and horizontal integration. Project rationale has been made explaining
about the plan of opening a new business of luxurious hotel along with the restaurant for people
who wants to have a luxurious and royal stay during their vacations and focus is also on the
people who come for business trips.
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Task1.
LO1. Understand the role of the hospitality industry within the travel and tourism sector.
1.1 Discuss the interrelationships between hospitality and wider travel and tourism
businesses.
Interrelationship between hospitality and tours and travel Business
To,
In comparison to other industries, Hospitality industry has emerged as a large industry in the
current scenario. In history, the industry of hospitality is the oldest business. Hospitality
industry plays a crucial role in tours and travels industry. It provides aids to the tourist
traveling from one place to another place. Premier Inn is the largest hotel brand in UK and is
British chain of hotel. When a person travels for a particular period for purpose of leisure,
business or recreation then it is termed as tourism. Sub-division of tourism can be done into
various small sectors of business, catering is done by hospitality industry only. Tours and
travel industry is incomplete without the sector of hospitality. The customer’s satisfaction of
tour and travels business is of utmost importance for Premier Inn and in order to satisfy the
expectations of customers the standards already set are to be fulfilled.
The services provided by the airlines to its passengers and the hotel services provided to the
customers come under hospitality. The services provided to the customers by operators going
for the recreational activities also covered under the hospitality service. It is not wrong to say
that the hospitality industry is a supplier for the tourism industry. The employees of hotel of
Premier Inn help their customers by providing them with different services such as operations
of room divisions, food serving, giving them guidance and many more. The hotel and
restaurants belong to the hospitality sector and tourism is incomplete without the hotel and
restaurants services. Hence, it can be said that supplier of tourism is hospitality sector and the
flourishment of travel and tourism sector is much because of hospitality industry due to
services like entertainment, accommodation, leisure, and food, and beverages, etc., required by
the traveler for his enjoyment. A person travels to get some relief from his normal life routine
to change his mind set and to have some refreshment. For this, he would like to have the best
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services and those are provided by Premier Inn.
It is the main aim of the hospitality industries to assure that the tourist especially those who
visit for the first time, feels safe, comfortable and enjoys their stay well. Hospitality industry
always tries to provide a high level of satisfaction to their customers by providing the high-
quality services involving everything i.e. serving healthy and hygienic food, providing a safe
and secure environment, creating a nuisance for all and taking care of overdrunk people. A
satisfy customers emerge as a marketing source. The overall objective of the service industry
is to make customer’s experience a better one and to increase their satisfaction level every
time they make their visit. The revenue of the sector can be increased more by having a repeat
customer or when the satisfied customers do the marketing through their mouth will add more
prospective customers for the sector and it is possible only when a person gets satisfied by the
personal attention and is happy with the services of the industry. The employees of Premier
Inn must be trained so well that they can handle each customer in a nice way. Equal treatment
and with due respect all the customers be treated by the employees politely and nicely. The
complete supply chain of tourism is constituted by the service supplier, tour operators, tourists.
For meeting the needs of customers regarding relaxation and yearning for attractions of
tourism, traveling agreements are signed by the potential customers with the operators. The
immediate response is given by the operators as per the agreements. Firstly the analysis is
made by Premier Inn, of demand of customers, and then services are distributed to the relevant
suppliers involving the service of catering, transportation service, and relaxing and hotel
service.
Excellent performance has been set by Premier Inn. In 55 locations Taj Hotel Resorts and
Places comprise of 93 hotels across India having 16 international hotels in Australia, USA,
Sri- Lanka, Maldives, UK, Bhutan and the Middle East. It provides arrangements for the
meeting and events in its premiere for that customer who comes for the business purpose.
Hilton Worldwide, Marriot International, TUI Travel PLC is some of the top hospitality,
leisure and travel companies. Sunday Times has mentioned The New World Trading Company
at the tenth position in the companies of hospitality (Swarbrooke, 2012).
The accommodation is the first need for the travelers’ after reaching their destination; the
hospitality sector provides the facility of accommodation by hotels, guest house or motel. It is
the responsibility of the hotel staff to provide the best services to tourists and to take care of
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them. The accommodation is provided to the customers by Premier Inn as per their package
selected by them. The services provided by the different hotels in different countries are not
the same it all depends on the star ratings. The star rating is now the main sources for the
customer to decide which hotel, restaurants they should choose as these ratings are the given
by their customers only. There are various organizations that provide services of tour and
travels along with the services of hospitality. The trip advisory is one of the organizations
which is actually a website inviting people to share experiences about the world’s different
places where they have made visits. On the basis of the personal experiences and traveler’s
suggestions, standards are set by Trip advisory and various information is also provided
regarding different destinations of the world.
As per the choices and requirements, the traveler can drink and eat at restaurants. The
recommendation by the accommodation’s place staff and any other tourists are the base for
choosing the restaurants. The ambiance, services, prices, menu varieties are different at every
restaurant. For fulfilling snacks and beverages needs, tourist also visits cafes but the café’s
menu is less than the menu of restaurants. The tourists also get entertained by the shopping
malls, amusements parks and cinema theatre. While getting entertainment the service of food
and beverages are also required by the tourists and Premier Inn serves its customers effectively
(Evans.et.al, 2012).
Therefore, it can be said that there is a strong interrelationship between tour, travels, and
hospitality. None of them can operate effectively without each other. No hospitality industry
would be there without the tourism industry, even there would have been a large gap in the
tourism industry without the hospitality industry. Hospitality segments are tourism.
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Task2.
LO2. Understand the impact of integration within the hospitality industry.
2.1 Analyze the implications of integrations in the hospitality industry.
Executive Summary
The management report is about the integration implications that the hospitality industry have.
Business of Premier Inn will be affected in a positive and negative way due to integration.
Introduction
In this management report, implications regarding the integration in hospitality industry have
been analyzed. Discussion has also been made on how the hospitality business has been affected
by the integration. The effect of integration on Premier Inn has also been described.
The hospitality industry has emerged as one of the fastest growing industry. World's class
services are provided by the hospitality industries to its customers, the satisfaction of customers,
services of medicines are some of the reasons that have made this industry in the global market
to conquer. Tour and travel sector has got the public know which is made by the hospitality
industry that has increased the huge demand of the same in the market. The inquiry is made by
the people before their trips by the organizations who provide the complete details required by
the customers so that they can decide further. The concept of integration came in the industry of
hospitality as both hospitality and tour and travel industry are incomplete without each other.
Instead of outsourcing the services the integration is emerging as a benefit option at present for
both the sector of industries.
Integration has become advantageous to both the hospitality industry and tours and travel
industry, the integration of the two has also increased their competitive advantage. In business, it
is of great importance to accept the integration and it can result in making the reputation of the
merging companies or one of the merging companies may have to compensate for the reputation
further as it’s not necessary that integration would result in the positive. There may be negative
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effect of the same. Own website has been built by Premier Inn provides all the services related
information regarding reservations and booking; instead of outsourcing its services of booking.
This is horizontal system of integration in which in order to extend the customer’s area and to
maximize the profits, company works solely. There are two types of integration in hospitality
industry namely horizontal and vertical integration (Hughes, 2019).
Mainly horizontal integration is used by the organizations rather than using vertical integration.
The profit of the company is increased and the numbers of customers are also increased by the
horizontal integration. In horizontal integration, two completely different sector’s companies
integrate together and form a bigger organization. For providing better services to customers and
quality services an integration system should be an efficient one. The integration is done between
tourism and travels industry and hospitality industry for making customers more satisfied. The
inquiry will be made by customers from different agencies of tourism regarding cheap and best
packages. This is a vertical integration system. Premier Inn, a hotel chain in order to increase the
base of customers outsources to outside industry, its booking facility. Inquiry can be made by the
customers about the packages considering their budget and customization can be done
accordingly. This integration has resulted in the area expansion and extension in its services. It
can be said that different types of packages and schemes are provided by Premier Inn as well as
its outsourcing services provided by its outsources travel agency has maximized its profit and is
developing as a good competitor (Kracer, 2013).
Walt Disney World Resort was purchased by Hilton Hotel International for €92,202,465. For the
succession and growth of the industry, it is essential that at all the branches and at the main hotel
all the same services are provided by the industry. The small organizations are affected by the
mergers of the larger organizations as small organizations are eliminated from the market and
employees of these organizations become unemployed which negatively affects the economy of
the country. The reputation of both the organization is at stake as there can be bad effect also.
There can be conflict of interests due to integration. The goals and aims of both the organization
can be hampered having different visions and mission. Conflict of interest can be there even due
to the unmatched process of decision-making of both the enterprises. But there are some
advantages also as it reduce the cost of transportation and traveling expenses due to the hotel
chain's ownership. All the hurdles are solved at the first stage of investment as integration
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identifies all the hurdles. The travelers’ managing cost is also saved because of integration as all
the services are available to travelers at the one place only. It also saves the extra handling
expenses and transferring charges because of the easy dealing of industry’s one department with
the other department of the industry due to the vertical integration which makes the easy
management of the numerous tasks (Mok.et.al, 2013).
The industry has been greatly affected by the globalization. Tourism is considered a big revenue
generator and countries are encouraging it. More revenue is generated by international tourists as
compared to the local one.
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2.2 Discuss how integration has affected a hospitality business.
There are different issues affecting the industry’s integration. The market’s current scenario can
be known with the help of integration. The successful mesh up of internal and external factors
result in the integration of the organization. There are various internal characteristics a company
has which include the structure of the organization, management style, organization's culture,
and strategy and staff. The mission of business or models of business, economy, political factors,
social factors, stakeholders are some of the external factors. A systematic integration must be
conducted because of the dynamic and continuous environment to run the business by the
managers(Neuhofer.et.al, 2015). It helps in catering to various business needs.
There are different ways in which the integration has affected the hospitality industry which
includes the following-
1. Competitive Advantage-The best advantage that the hospitality industry earns from the
integration is a competitive advantage. The two competitive companies if combined together can
attract many customers to them. Premier Inn has integrated with different tour and tourism
agencies for providing tourists with complete and attractive packages.
2. Standardization-The process of standardization plays an important role. It is complicated as
well. Involvement of the human element is difficult in standardization. There is a standardized
process in Premier Inn as all the customers will find that they get the same environment, services
in all the branches as they get in the main premise. To maintain the standardization at all the
branches, a company needs to be strict, hardworking and an efficient. If the customer will get the
standardized services at all the branches then the hospitality industry will emerge as the brand.
3. Creation of Monopoly-The choices for the customers gets reduced and monopoly is created if
two of the big competitors of markets combine. This monopoly can be created by Premier Inn
only if it provides best and quality services to its customers continuously along with its
integrated company (Chou.et.al, 2012).
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4. Reduction in production cost- The combination of resources of the two companies results in
reduction of its production costs. If Premier Inn will integrate then it will result in a reduction of
its production cost.
5. Maximizing Profits- The profits of Premier Inn will get increased due to the integration. The
more customers will get attached to the company giving more returns resulting in high
profitability.
6. Business diversity-The diversity of business of Premier Inn will get increased. The coverage
of customers will increase. There will be expansion in the business and company will be able to
provide its different services to other countries also.
7. Increase in the value of the business- There will be increase in the value of the business of
Premier Inn as it will be able for sharing the data with the stakeholders.
8. Quality-It is not important that integration will result in an increment of quality. Sometimes
the employees do not want to follow that approach which is follow3edd by their new boss due to
the thought that new process may not be feasible. Such a problem has also been faced by Premier
Inn for ensuring its customers about the quality.
9. The economy of scale- Travel and tour agencies are given services by Premier Inn which
makes the profits of the tourism industry and it emerges as a beneficial agency sue to this. There
will be high profits out of takeover of any hotel by the travel agency although there will be a
high investment at the beginning (Prud’hommeand Raymond, 2013).
The accuracy in the integration can be achieved by establishing effective strategies and
developing authority and responsibility relationship in company. Innovative ideas must be
involved for the same. All the problems of the business management can be identified and solved
at the first stage of fund investors. Proper management of employee’s training and development
is required. All the plans will be made as per the requirements. Thus, the hospitality industry is
affected by the integration either a vertical integration or the horizontal integration. It has
positive as well as negative effects. The companies to the integration often result in emerging as
a brand due to the integration.
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