Hospitality and Tourism: Industry Integration and Development

This report delves into the crucial interrelationship between the hospitality and travel and tourism sectors, emphasizing their integrated approach to customer satisfaction and economic contribution. It analyzes the roles of hospitality providers, from hotels and restaurants to travel agencies and tour operators, highlighting their interdependence. The report explores integration strategies, including horizontal and vertical integration, and their implications for businesses like Marriott and Thomas Cook. It examines the benefits of such integration, such as improved supply chain management, increased sales, and enhanced customer experiences. Furthermore, the report discusses the impact of integration on industry operations, outlining the advantages and disadvantages of various integration methods. It also covers the planning and development of hospitality businesses, considering factors like market dynamics and cost-benefit analyses, providing a comprehensive overview of the industry's interconnected nature and strategic development.

Hospitality Provision in
Travel and Tourism
Industry

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Interrelationship between hospitality and wider sector travel and tourism businesses'........1
TASK 2............................................................................................................................................4
2.1 Analysing the implications of integration to the hospitality industry...................................4
2.2 Discussing the affect of integration on hospitality................................................................6
TASK 3............................................................................................................................................7
3.1 and 3.2 Planning the development of hospitality businesses................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Hospitality industries play an equivalent crucial role in enhancing the economic
stipulation of the nations where Travel and Tourism are together referred to contribute into the
same. Both sectors are considered to rule with an integrated formation of their services. It is
mainly due to their alike nature of services to the guests and visitors into which the respective
segments are responsible to accommodate them with certain likeable amenities of travelling and
habitation (Barros, Butler and Correia, 2010). Both hospitality provisions and tours and travel
organisations are primarily focussed upon significantly attaining customer satisfaction. Due to
this, they generally become an interdependent alliance of one other with a huge beneficiary
approach of servicing their upcoming clients and users. The below report is based upon a similar
articulation to define the benefited concept of an incorporated facility by both the sectors. This
will not only benefit the interrelated enterprises but will together make a greater contribution in
the economy of entire nation.
TASK 1
1.1 Interrelationship between hospitality and wider sector travel and tourism businesses'
This is basically to comprehend vital roles of hospitality industries into the businesses of
tours and travels. It is however with a primary implementation of understanding the individual
functionalities of both types of organisations. This is considered to be an important prospect for
ultimately relating the ongoing implementation of both the sectors where they are referred to
work with a similar cogitation of satisfying their clients by their enforced services (Devashish,
2011).
It hereby begins with a precise exemplification of composed form of hospitality firms
into which such entities are mainly rated on the basis of their dignified categories. This is where
the hospitality industries are fundamentally proportioned as per their considerate stars into which
their hotels mainly exist from 1 star to 5 stars. These are however referred to be high cost hotels
where there together exist certain budget hotels with some fewer or basic facilities of bedding
and in-taking food, etc. Restaurants, nightclubs, pubs and bar are also an equivalent part of
hospitality industries with some limited services of their catering dining services.
Cafes, fast food centres and coffee shops are some related illustrations of hospitality
services. Pubs and bars are however with a slight extended service of providing managed houses
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for lodging and accommodating services where leased pubs, tenants and free houses are a good
source of earning with a huge demanding factor (Christie, 2011). Hospitality services also
include some other affiliated services of contract food providers where catering is done in the
form of an outsourced amenity. However, they together include some in-house managed services
of catering into club and membership events, etc., into a contractual form or on regular basis that
primarily depends upon the exact nature of their operational businesses.
Travel and tourism sectors exist with a slight distinct yet at an equivalence position into
which they are mainly concerned about travelling purposes of their clients and customers. These
sectors reflect a combined formation of one another where travel services as an origin of other
reforms is made up of certain effectively merged components of travel agencies, tour operators
with their online services of online tour agencies (OTA's), entities for destination marketing or
(DMO's) with some other affiliated enterprises as well. Travel sector is thus considered as an
initiatory factor of further substantial constituents into which the tourism services are referred to
be its main associative parts. Tourism services are consequently referred to be a complex
formation of certain effective services for the upcoming visitors and travellers into the nation.
It is mainly due to its differential and broader perspective of servicing them with some
apt services of transportation for them. This however involves some vital facilities of roadways,
rail, and air as well as water transportation services. It showcases a partnered provision of
tourism businesses where they alliance their services with the partnering companies intro some
accessible forms of integration (Friese, 2009). However, an impelling and competent service by
tourism industries also renders some other requisite services of accommodating the travellers at
some profound locations or as per their implied demands. For which, these firms creates an
epochal business terms with some active industries of hospitality as well.
This mainly depends upon their vital consideration of serving the approaching clients and
customers as per their reflected preferential needs. It is where the tourers often travels with some
prominent intentions of their own that are mainly segregated into two reliable intents of business
purpose or with another vital constituent of spending holidays. Therefore, on fulfilling the
business purposes of travellers, the tour companies are principally obliged to arrange some
eminent services of transportation for them. By which, they can easily and timely attend their
respective business meetings and events or conference at the cogitated venue without any chaos.
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Furthermore, the holiday makers are expected to acquire some profound services of
visiting the attractive locations of their tour destination along with a fine service of
accommodating at a well recognised place (Grady and Ohlin, 2009). This together depicts about
some related services of catering food and beverages to the tourers with an effectual quality of
each of their rendered provisions. Hence, accommodation services with a significant
arrangement of transpiration for the passengers have been ascertained to be some vital
considerations of travel and tourism sectors. This also refers to direct link between both
industries of hospitality and tours and travels where their services are essentially interdependent
upon one another.
However, hospitality firms are referred to subsist with some more dependable
formulations by the affiliated companies of tours and travels. The hospitality industries along
with their fine provinces of accommodation are together required to provide some other related
amenities of food and transportation services, etc. Being into the position of assistant manager
into an independent hotel chain of Marriott, there interlink between hospitality and tour and
travel firms. This is mainly due to their similar nature of serving the guests and users where
Marriott also consider rendering their business clients and holiday makers with some liable
services of transportation. Marriott has finely merged their accommodation services with some
other notable organisations of Thomas Cook as some profoundly known tour operators of UK.
This significantly helps the stated entity of to provide some likeable amenities of travelling.
Thomas Cook is further incorporated with certain other transportation service providers
like British Airlines, etc. Such amalgamated services of travelling and accommodation largely
help the Marriott to serve their clients and customers into a desirable format of essential
amenities to them (Janta, 2011). This is not only evident to enhance the future considerations of
Marriott and Thomas Cook by raising their profitability scale, but an enlarged formation of their
services will together benefit the entire nation. It is due to another factual statement into which
UK's economy have been canned to increase by the year 2025 with a huge contribution of both
these organisations. This has been recorded with an enumerated statistics of 10% contribution
into GDP rate of UK. These sectors have together resulted in encouraging the employment
opportunities in the nation by providing 3.8 million jobs.
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TASK 2
2.1 Analysing the implications of integration to the hospitality industry
Integration is directly linked with the interrelated services of both the organisations
where the hospitality firms are referred to be at a more dependable stature. Such integrated
services are perfect to beat the bearish consequences of the international trade. In this, both the
incorporated firms acquires an enough competent position to face challenges of operating with
certain challenging elements of the globalisation (Leung and et.al., 2013). An integrated form of
services are together helpful in generating a liable earning for both active organisations where
they also serve the nation into an amplified form. Such integration however consists of mainly
two types that depend upon their varied levels of consideration to aptly operate the existent
activities of their businesses.
Working in the position of assistant manager in Marriott Hotel, this section specially
analyzes the peculiarly effective form of integration as per its vital nature of the hospitality
industry. It is hence important to conduct a primary procedure of studying available alternatives
of an integrated business where it together relies upon the nature of a particular business. This is
mainly due to its sequential methods where some similarly natured businesses are being
integrated by their owners with another formulation of two integrating business of variued
industries. It thus depends upon the owners to opt for a relevant measure to ultimately acquire a
desirable range of profits and revenues. Below described methods are referred to some
favourable options of integration along with results-
1. Horizontal Integration- A horizontal integration generally takes place at the time of
interrelated activities of two or more similarly natured firms. For example, if Hilton Hotel
associates with another firm with relatively same range of their products and services.
Then it will consider to link with some leisure companies like Walt Disney World Resort,
etc. A horizontal integration is thence referred to be an internal expansion of business
activities where the participants firm will mainly bother to render an enlarged state of
their existing services to the users (Sigala, Christou and Gretzel, 2012). Supply chain
management at the time of production will be significantly affected by this form of
integration where both the firms will be benefited by such implication. This is with an
increasing state of products and services through which hospitality firms like Hilton
giving their guests an access to expanded service for experiencing recreational activities
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by Walt Disney World Resort. This will together help the affiliated firms to increase their
sales of goods. Hilton can also consider creating a packaged form of their integrated
services with a slightly raised cost of presently outspread services in comparison to their
antecedent generalised services.
2. Vertical Integration- Such integration on another hand is apparently done at the time of
expanding existing business activities.. It is mainly due to its certain beneficial
consideration of transforming the supply chain management of the firms with a
significantly lowered incursion of production and manufacturing costs. The distribution
channels of the enterprises are together merged into such integration where the hired
company is entirely being monitored with the consultant ownership entity. It however
comprises with two further subdivided propositions to define an accurate version of
integration for the business, as delineated below- Forward Integration- Such sort of integration is being applied at the time of empowering
the overall ownership of the respective firm in terms of controlling their entire procedures
of supplying, manufacturing and distributing, etc. In this; such sort of integration mainly
helps the organization to acquire a strengthening position into their market shares by
gradually enhancing their economies of scale. A tremendous advancement of technical
aspects has significantly resulted into raising the scope of forward integration. The active
firms can easily formulate their respective works with a mere online presence to activate
into a desirable manner (Tsiotsou and Goldsmith, 2012). This is in regard to set up an
online business where the earlier businesses were largely dependent upon a physical
presence of retail establishment for effectively dealing with the products and services. A
forward integration is however referred to be a useful implementation at the time of
referring to facets of cost benefit. The ownership firm should be primarily cogitated
about prevalent dimensions of their respective markets.
 Backward Integration- A backward integration is basically applied for improving
efficiency of the firms where it further results into some more optimistic resultants of
saving costs and other related expenditures of the integrated entities. A minimised cost of
transportation with an amended range of profits is some proven outcomes of backward
integration.
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2.2 Discussing the affect of integration on hospitality
This is in relation to depict the actual implication of integration onto hospitality
businesses where horizontally integrated services are considered to yield certain liable outcomes.
However, a vital cogitation of such integrated services by the firm exists with a stringent
requisition of attaining success within a stipulated time period. Moreover, the active enterprises
of hospitality who are opting for integration also need to implicit the ongoing perceptions of their
markets (Ye and et.al., 2011). This is mainly to implement a succeeding approach with some
definite results of success at an ultimate stage. It will also help the organisations to acknowledge
the prevalent trends of their markets that will directly reflect preferential needs of their
customers.
The present depiction is in regard to define such eminent considerations of hospitality
firms where they work into the most dynamic stature with some constantly changing demands of
their customers. This thereby recommends the firms like Marriott and Hilton Hotel to have a
continual prospect of monitoring such altering perceptions of their respective markets before
opting for an integrated form of businesses. Such enforcement will together provide them a liable
cogitation of selecting from two most peaceable concepts of integration with their varied affects
that may result into both affirmative and counter consequences, as mentioned below- Decreased financial resources- This is referred to be a beneficial aspect of integration
into which the firms will acquire a higher range of their static profitability scale. It will be
however due to a diminished cost of their running operations (Hilton Hotels, 2015). This
is where an integration of business activities will significantly result into reducing their
related financial expenses of production and distribution, etc. Decision making prospects- It is however referred to both consequences of positive and
negative affects into which an optimistic formulation is referred to their corresponding
approach of working together. However, such procedure can be easily hampered with a
hindered provocation of some differential visions and missions of their respective
organisation. Thus, in such measures the management bodies of Hilton should formulate
a prior approach of collaborative work where both the integrated firms will respect each
other's vital cogitations.
 Disputes among the integrated enterprises- This is mainly referred to incorporate a legal
and ethical implementation of working into an integrated manner (March, Buhalis and
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Crotts, 2000). It will significantly help them to work with a legitimate consideration
towards a definitely focussed direction. Such procedures will together help Hilton to
acquire a desirable earning from their integrated form of business where it’s partnered
firm will fully support its leading deliberations.
TASK 3
3.1 and 3.2 Planning the development of hospitality businesses
This is relation to build a rationale plan for a significant development of hospitality
business which is further based upon mandating certain related decisions for a fine
establishment. Market assessment is the foremost consideration for such constitution where the
organisations before commencing such activities are recommended to make a fine investigation
of the ongoing scenario of their considerate expansion arenas (Bharwani and Mathews, 2012). It
further refers to inculcate some applied methodologies of evaluation where the solicitous firm
should appoint a different team of marketing individuals to analyze the major requisitions of
their respective markets. This initiates with a prior execution of determining the vital aims of the
entity in terms of acknowledging their relative visions and missions.
This should however with a precise cogitation of their specified objectives to the
appointed personnel. It is basically for a systematic formulation of their assumed plans of action
where the respective enterprises should appoint a proficient team of individuals in their
marketing departments. Furthermore, they should primarily divide the departmental structure of
their organisations into varied sections to superiorly handle the distinct objectives of the
establishments. This is especially in regard to state the three crucial sections of human resource,
finance and sales and marketing departments with a strong set of professionals into it for
managing their leading responsibilities.
In this, the finance associate will be crucially responsible to set an adequate budget for
enlargement where such investment of funds will play an essential role to achieve a coveted
response from the users (Cormany and Baloglu, 2011). Human resource is the subsequent set of
body into an enterprise where they are mainly responsible for hiring procedures of other
departmental bodies. They therefore plays a crucial role in the organisation where along with
such crucial responsibility of recruitment and selection, the administrative bodies of HR
department are together appointed to play a consultative role for the entire organisation.
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However, the other operational bodies of sales and marketing will together indulge into some
prominent activities where they will be mainly responsible for handling upcoming clients of the
organisation.
This relates to yet another vital cogitation of an aptly designated department of customer
service into which the appointed personnel in that particular segment will require resolving any
arising issues and concerns of their clients and users (Enz, 2009). This is referred to be an
eminent proposition of hospitality firms into which customers are considered to be the most
valuable asset with a long term perspective of benefiting them. This is due to a fundamental
potency of satisfied clients where they will definitely refer to create a long term kinship with the
entities.
With reference to it, a proposed plan has been portrayed for a fictitious firm named
Kingston Paradise at a fine location of London, UK. London has been selected the most
prominent destination for tourists with some finer places to visit. It is known for an equivalent
number of both domestic and international tourists to experience the beautifying agents of
London. Kingston Paradise has however selected an eminent location of Kensington Gore which
is along with some other attractive places establishments for the visitors. It is mainly considered
to be a popular destination for the Royal Albert Hall that is exactly situated at that peculiar road
with tons of travellers roaming there (Fullagar, Markwell and Wilson, 2012). Below defined
stages are referred to a step wise formulation of certain effective measures to successfully launch
a new hospitality firm named Kingston Paradise,
Stage 1: Development
 Concept- It the foremost step to redefine an effective cogitation of a new boyishness set
up into which the primary responsibility of the associated bodies of Kingston Paradise is
to determine a general idea of their business. It is basically to outline the initial concepts
of the new business set up. This further includes a systematic form of their targeted goals
and objectives that mainly states a precise form of their accumulated visions and missions
of commencing the business into a desirable format.
◦ As a result to which, the leading idea of Kingston Paradise is to render a satisfied
form of services to their upcoming customers. For which, they have chosen a famed
location of London that is already known for its best derivative attribute of numerous
tourists and visitors (Hayes and Ninemeier, 2008).
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◦ The core objective of the cited entity is to earn an enviable profits and income by
significantly attracting more number of clients towards its new set up.
◦ A signified vision and mission of the stated enterprise is to completely work into a
reformed inclusion of services with a unique formulation of servicing their clients.
This refers to a momentous application of some newer approaches to serve the clients
with a prior assistance of scrutinising the prevailing dimensions of their market. It
will further aid Kingston Paradise to inculcate some corresponding approaches into
their routine procedures to serve the clients into a gratified manner.
 Market Research- It the subsequent step by Kingston Paradise into which the responsible
parties of their sales and marketing department are the main associate team to play a
crucial role in it. This further refers to take a strategic move for evaluating the ongoing
events of their chosen market.
◦ Kingston Paradise is hereby responsible to conduct a primary study of some major
influential factors of UK market where they are establishing their business. It is
mainly due to the perfectly competitive nature of UK market (Kerr, 2007). This
recommends the stated entity to attain a competitive positioning into their new
constitution by significantly defeating the leading number of existing rivalries.
◦ It together considers applying a step wise method into which the cited firm is required
to scrutinise some other relative factors of political, economical, socio-cultural,
technical and environmental elements that can directly impact upon their vital
business decisions.
◦ This yet again relates to a legitimate consideration of setting up a business at a
completely new area with some different speculations by their regimental bodies.
Legal paper work with a sufficient inclusion of funds for investments is an associated
part of such cogitations.
 Target Market- This is referred to another critical cogitation with a benefited approach
for the entity in which Kingston Paradise will refer to segment a particular set of targeted
customers. It is with a specialised approach of servicing the clients and users into a
desirable form where they will mainly refer to include some matching products and
services to satisfy the preferential needs of their targeted set of customers (Medlik, 2012).
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