Hospitality Sector Report: Integration Implications and Planning

This report provides a comprehensive analysis of the hospitality sector within the travel and tourism industry. It begins by exploring the interrelationships between hospitality and travel and tourism, highlighting the roles of various sectors like lodging, transportation, and event planning. The report then delves into the implications of integration within the hospitality industry, using Marriott International as a case study, and discussing both vertical and horizontal integration strategies. It examines how integration affects business operations, including branding, pricing, quality, and customer spending. Finally, the report outlines the rationale for a selected project and develops a business plan for a hospitality business, aiming to aid firms in achieving their targets and expanding in the domestic and international markets. The analysis considers factors such as economies of scale and the significance of branding and pricing policies.

Hospitality provision in Travel
and Tourism Sector

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1..............................................................................................................................................4
1.1 Interrelationships between hospitality and travel and tourism...............................................................4
TASK 2..............................................................................................................................................6
2.1 Implications of integration to hospitality industry...............................................................................6
2.2 Integration has affected a hospitality business....................................................................................7
TASK 3..............................................................................................................................................8
3.1 Rationale for a selected project.......................................................................................................8
3.2 Develop a plan for a hospitality business........................................................................................10
CONCLUSION..................................................................................................................................12
REFERENCES..................................................................................................................................13

INTRODUCTION
Hospitality sector comes under tertiary sector and does business which is related to
deliver services to consumers which are related to accommodation, food and many more. In
modern era, it has been located that business firms of this sector have managed to maintain their
productivity and profitability both at the same time as this people all around world mostly have
build their interest to visit new places where they take hotels to stay and restaurants to eat
(Brookes and Becket, 2011). Under this report, consultancy firm which has been taken under i.e.
PKF Hotel Experts that mostly focuses on hotel, tourism & leisure and provides them practice.
Away from this, assignment is going to include various things like interrelationship in between
hospitality and travel industries. Report is also going to put light on integration of hospitality
industry. Lastly, it will show an effective plan which may aid firm in hitting its targets and
developing at both domestic and international marketplace.
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TASK 1
1.1 Interrelationships between hospitality and travel and tourism
Interrelationships among hospitality and travel & tourism sector
Name-
Date- 25 May, 2018
Hospitality sector- In United Kingdom, this business sector has grabbed a wast area where all the
business firms under this sector is keep on delivering services to consumers according to their
needs and wants. This sector mostly believes in delivering quality services and do not
manufactures any sort of products. This includes various things like lodging, theme parks,
transportation, event planning, hotels, restaurants and so on.
Travel and tourism sector- Travel and tourism sector do comes under hospitality industry. Under
this, most of firms usually makes different sorts of plans and strategies so that to grab attention
of visitors who have visited the country or business people who have came for some business
concerns.
Role of Hospitality Sector in Tourism Industry: Travel and tourism industry is a part of
hospitality sector. If companies are not maintaining quality of services under this sector that they
are offering, it may be possible that organisation may not sustain at marketplace for a longer
period of time because United Kingdom's government mostly keeps on making rules and
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regulations for its citizens so that they can live their life in much positive and healthy manner.
These strict laws which has been bade by government it needs to be followed by every single
firm of tourism industry. Failure into this, may lead organisation to face losses or their licence
may also get cancelled. Visitors in all over world likes to visit most attractive places of UK
therefore, travelling companies mostly should keep on delivering their services according to
guests perceptions.
Interrelationships among hospitality and travel and tourism business: Both of these two
sectors needs to stay connected with each other of United Kingdom. On the other hand, leisure of
company, most of business people are doing their business in this sector as this section has great
potential along with this, this subsection in industrial world is also pulling eyes of entrepreneur
as well as investors. As interest is building of people to visit different adventures places here,
travel and tourism companies like Thomas cook are delivering its services through getting
connected to different hotels.
Conferences and exhibitions: It has been located that there are ample number of components
that stay related to conferences and exhibitions in order to hit their targets in much more effective
and in efficient manner. Travel and tourism section, keeps on developing and conducting
exhibitions along with conferences where they set different target in the market on a regular basis
which may aid them in hitting their targets on a regular basis. On the other hand, development of
company can be done in an easy and in effective sense. Along with this, organisations stay
interconnected with each other in hospitality industry to better serve to consumers on a regular
basis.
Package Holidays: Travel and tourism firm keeps on making various sort of packages in order to
grab the attention of visitors so that they visit places again and again. In packages they give
many sort of plans and on a regular basis keeps on modify them as it has been located that based
on different seasons their requirements gets changes.
Aviation: Both travel & tourism and hospitality sector may aid organisation in hitting their
targets in much effective and in efficient manner. Firms under these two sections stays
interconnected with each other that may help them in attaining all the goals and objectives in
much effectual manner.
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TASK 2
2.1 Implications of integration to hospitality industry
In business world, merging different activities together can be considered as integration.
In modern era, hospitality industry needs to imply all the different aspects that may aid
companies in attaining all the goals and objective right on time. With the help of this, economical
conditions of United Kingdom can be enhanced at immense level. Under this report, Marriot
International hotels which are dealing different sectors and have taken over Starwood Hotels &
Resorts. They deliver services to companies according to their needs which has helped them in
gaining good and competitive advantages at marketplace of United Kingdom. PKF Hotel experts
when it comes to apply integration it has been located that both positive and negative impacts
can be seen in profitability and productivity of the firm (Darcy and Pegg, 2011). Along with this,
it has been located that merging plays and important role when a company is looking forward to
gain competitive advantages. Some of integration are mentioned beneath:
Vertical integration- This element is being considered as a buying process where
organisation purchases other firms and its suppliers as well. This sort of process can be stated as
one of the most beneficial one through which reduction of operating cost and increase in
profitably ratio can be seen. In present case scenario, Marriot International hotels has purchased
almost all the suppliers of Starwood Hotels & Resorts and along with distribution channels.
Competition can be given to other companies through taking under this process. Here,
integrations are backward, lateral and forward which can be taken under in use.
Importance of branding and pricing policies
It has been analyzed that there are many tools that can be taken under in use by
hospitality sector but there are two unique elements evaluating and marking strategies which
assumes a vital part in expanding deals alongside the benefit level of an association. Valuing is
seeing as exceptionally touchy part to draw in the general population most. The shoppers need
items or administrations at sensible cost which they can incline toward. Then again, mark is a
fundamental part which individuals needs to purchase. They buy powerful nature of items which
can fulfill necessities of customers in better way. On the off chance that organization will offer
better nature of items to buyers then they will be faithful towards it and furthermore will be hold.
In setting to this, there are numerous exercises which are changed as a result of an expanding in
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globalization yet in the wake of utilizing most recent advancements, there are diverse social
stages which are affected and it additionally influence on the accommodation division.
Horizontal Integration: One more element that comes under in use in order to gain all
the competitive advantages at marketplace of United Kingdom. With the help of this tool,
travelling sector has influenced many citizens of UK to do business. On the other hand, taking in
or considering this sort of tool may aid Marriott International to hit their targets in much
effective and in efficient manner. In United Kingdom sector, there are various hotels which give
their better performance and satisfy needs and wants of consumers in an effective manner.
2.2 Integration has affected a hospitality business
A joining builds up a major effect on elements of accommodation part alongside the
movement and tourism. It helps in making things more advantageous. A reconciliation joins
center capabilities of two firms which pull in shoppers more. Its fundamental spotlight on use of
the assets, mechanical elements and focused expenses. Not with standing this vertical and
additionally level coordination both are enabling organizations to spend more cash on business
and making more beneficial (Hopeniene, Railiene and Kazlauskiene, 2015). It is important for
associations to utilize propelled advancements for offering viable nature of administrations of
merchandise. Propelled innovation is useful in improving creation process and diminish task
cost. In context to this, It will be helpful in support manager of Marriott International in order to
running the business activities as operations in systematic manner.
Affects of integration
Quality- It has been located that this factor plays vital role in hospitality sector. In
modern era, most of people or United Kingdom's citizens looks forward to live a happy and
healthy life and try to implement all the hygienes in their life. This improvisation in thinking of
consumers has impacted on organisations objectives, plans and purposes. On the other hand,
Marriott Hotel keeps on conducting research programmes in order to analyse all the demands of
consumers and takes initiatives in order to grab good position at marketplace of UK.
Enhanced attraction- Marriott International Hotels who are doing business at
international level it has been located that this firm mostly takes under integration through
enhancing sales of products and services in much effective and efficient manner. Along with this,
it has been analysed that organisation under this sector mostly makes strategies and plans in
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order to enhance their profit margins through grabbing attention of consumers or visitors high in
numbers.
Control of Sub sectors- It has been analysed that Marriott international hotels keep on
delivering its services to consumers through keeping in all the controls of all the factors that can
put impact on business operations and on profit margins as well.
Increasing power of customer spending- It has been analysed that organisation keep on
making modifications in their products and services so that all the to keep up the interest of
consumers in their products and services. This company keeps on developing their products and
services through locating all the needs and wants of customers.
Economies of scale- Marriott Internation hotel has a huge name in all over world and can
put impact on economy of a country. Uniqueness in strategies, plans and actions of managers of
this company has helped them to gain competitive advantages at marketplace of United
Kingdom.
In present report, an integration in between two organisations (Marston's Plcs and
Marriott hotel) has been done which are rapidly looking into different aspects like productivity
and profitability of organisation. It has been analysed that if Marriott Inn will charge the high
cost of its administrations and items as correlation with alternate firms then for this situation
customers won't allude its administrations.
Ramifications of a reconciliation: In setting to execute level and vertical combination in an
industry of accommodation, a few focuses are given beneath as above:
Significance of estimating approaches and marking: Importance of this sort of
approach is to consider all the needs and wants of consumers and then sets a budget so that to
deliver products and services according to their requirements (Hovhannisyan and Keller, 2015).
With the help of this, firm may improve their profitability and productivity both at the same time.
Therefore, it is required for Marriott Inn to locate all the risk factors that are present already at
marketplace so that sustainability can be improved in short period of time.
TASK 3
3.1 Rationale for a selected project
Restaurant which has been taken under this task I.e. Marathon which is located in United
Kingdom and delivers its services at small level. Quality of food of this restaurant is much better
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than the other restaurants. Apart from this, in the given case study this organisation's
management is looking forward to improve its infrastructure in order to grab attention of
consumers high in numbers. Through this company will directly mmay attain all desired goals
and objectives in much effective and efficient way (Law and et. al., 2015). It is very much
required for managers to keep on developing proposals and then apply it in order to attain all
desired goals and objectives. Apart from this, if restaurant is looking to enhance their
profitability ratio development should be done by looking at all the current trends and perception
of consumers. This can be done through doing research in the marketplace where data is being
collected and decisions are being made through taking in use of all the information which have
some sense and relevance to the aim or objectives of conducting the research. Along with this,
consumers taste gets changes on a regular basis which may put impact on profit margins.
Therefore, it is very much required for managers to make modifications in their products and
deliver them through which satisfaction can be improvised guaranteed and through this it may
lead firm to reach at its highest peak where giving competition to rivals may become an easy
part. In this context to this. Under this, many steps are being mentioned beneath:
Concept of services and products- It has been analysed that United Kingdom is filled with full
of rapid changingn natures. Marathon firm offers different kinds of services and effective
facilities in context to fulfil demands of consumers (Lynch and et. al., 2011). Other than these,
there is a need to firm to offer some of the additional services like for an instance parks, beverage
and gym facilities which will aids in increase profit of firm in an effective manner. In addition to
this, it is necessary for management to segment consumers according to age, living standard,
occupation, income level and many other things.
Target showcase The primary target market of this firm is white collar class individuals
which are not ready to bear the cost of high bundles. It is fundamental for Marathon inn to
execute inventive and additionally new strategies to serve better nature of nourishments as
indicated by the season and also requests of shoppers at least cost. It helps in pull in more
shoppers in setting to build benefit however target buyers whose buying power is more. With the
assistance of division, chief of Marathon lodging can distinguish requirements of various people
and give different administrations to them.
Working model- When an organization looks to specific end goal to run business in
smooth way, administrator of Marathon lodging execute different model of tasks in a powerful
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way. It is vital for administration to characterize parts and also obligations of staff individuals for
play out all movement of business in better way. Likewise, it is basic for firm to procure most fit
people which have learning, aptitudes, working abilities and numerous other essential abilities.
Location- This element plays an essential role when it comes to enhance business at
marketplace. If firm is looking forward to improve its profitability it is very much required for
managers to keep on looking into this aspect and target those areas where they can cover
consumers in very good numbers. Then only company can grow in much faster manner. In
context to this, if Marathon hotel which has been taken under mmay improve their productivity.
Opening business outlet like hotel in whole new market it is required for them to consider all the
needs of consumers and then establish a whole new unit so that to deliver products and services
accordingly. This may aid firm in grabbing good position at marketplace of UK in short period of
time(Medlik, 2012). It is essential that location should be proper so that people will able to to
there are enjoy its services in an effective way.
Designing- Here, infrastructure plays an important role. It is very much required to
analysed all the current trends and then take initiatives so that benefits can be gained in short
instance. Playgrounds can be made for children, billiard table for adults and small halls for kitty
parties are some sort of initiatives that can be taken by Marathon hotel.
3.2 Develop a plan for a hospitality business
Strategy for success alludes to formal articulation which is create through each firm to
dope things in an orderly or appropriate way. Under arrangement, a wide range of data are
incorporated identified with start of any new pursuit a better place in efficient or legitimate way
(Medlik, 2012). Under this arrangement of the vital advances are given beneath as above:
Process 1: Development: It is a first stage and accommodating in building up any new business
for doing all business task in methodical way in area of cordiality. A few stages are say beneath:
Idea: Under this, it has been located that it is needed for managers to build up a superior
thoughts regarding new business and think some creative plans to pull in individuals for
expanding profitability of firm.
Statistical surveying: Under this, inn leads an examination is led through firm to think about the
requirements of buyers, existing administrations or goods,competitors, current market patterns
and so forth.
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Target advertise: Firm should choose the objective market or gathering of people to expand
efficiency alongside the productivity of business. The objective buyers of this firm are white
collar class individuals which can manage the cost of the administrations of this association.
Target area and business measure: The span of business is little and incline toward target area
is London in United Kingdom. Under this inn, there are 50 rooms in which some are AC rooms
and some Non-AC.
Financing: Under this, for working together firm needs of more subsidizes and organize or
different distinctive tasks and additionally exercises (Mok, Sparks and Kadampully, 2013).
Current Period Year to date
Actual Budget Last year Actual Budget Last year
Rooms Revenue £ £180 £100 £700 £670 £630
Telephone
expenses
8 8 6 44 42 40
Gift shop expenses 10 8 8 45 45 39
Miscellaneous
expenses
5 5 5 20 20 20
Restaurant revenue 17 17 15 75 73 70
Beverages revenue 8 8 8 30 28 30
Subtotal of Food
and Beverages
revenue
25 25 23 105 101 100
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Total of hotel
revenue
48 46 42 214 208 199
Product and Service: Som sort of services that are being offered by Marathon hotel are:
accommodation, food, cars and bikes to visitors to visit places with some extra charges and many
more.
Licensing: Marathon hotel is already affiliated and have food licence from government
and on a regular basis inspectors do visit this hotel in order to locate if this hotel is not delivering
right services to consumers or not.
Process 2: Design
Ambience: Building up trust among staff members and consumers can be considered as
a main task. On the other hand, Marathon hotel also needs to locate current trends and make
modifications in the hotel so that firm grabs attention of clients high in numbers.
Interior: Another factor that plus an important role when it comes to enhance belief of
customers in products and services that are being delivered by a hotel. Attractiveness of
consumers can be improvised through delivering them proper interior according to needs of them
so tht to sustain at marketplace for a longer period of time (Murphy, 2013).
Culture: Perception of consumers gets changes on a regular basis and this has already
been located. Here, different cultures among staff members may get raise issues which can put
impact on Marathon's profitability.
Functional areas: Online application may aid Marathon hotel in getting attention of
consumers high in numbers. Along with this, company keeps on hitting their targets Through
taking under all the tools and techniques that are related to technology company can give high
competition to its rivals.
Sustainability: In a rapid manner if Marathon hotel keeps on delivering quality products
and services to visitors then it may be possible that long term relationship can get development.
With the help of this, organisation can sustain at marketplace of United Kingdom as much as
they want. (Nwosu, 2014).
Process 3: Operation
Staffing by Functional areas: HR manager needs to take initiatives where recruitment
process takes place. It is required for managers of human resource department to recruit
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candidates who are talented so that all the desired goals and objectives can be attained right on
time.
Specialist qualification: It has been located that situations comes up where company
required to have high quality numbers. These candidates are consistent with something special in
their work which may aid organization in attaining goals and objectives of Marathon Hotel.
Promotional activities: Another factor that can enhance sales of services that are being
offered by Marathon hotel. Organization can use both paper and online tool.Here mostly online
tool are being considered as one of the cheapest (Pulina, Detotto and Paba, 2010.
Pricing: Companies needs to examine needs and wants of customers and deliver them services
accordingly with reasonable prices and then only an organisation can sustain at marketplace of
UK for a longer period of time.
CONCLUSION
From above mentioned report it has been concluded that hospitality industry has played an
important role in enhancing economical conditions United Kingdom. Companies under this
sector delivers products and services to consumers as per their needs and wants. Also this report
showed all the aspects which were related to integration which impacted on working operations
of the companies of tourism and hospitality section. On the other hand, Accommodation area
assumes a fundamental part to build profitability of business and is an interrelation amongst
movement and tourism and furthermore neighborliness segment. Furthermore, there are two
various types of reconciliation like flat and vertical examined. An interrelationship in between
both tourism and neighborliness section may likewise examined has also been mentioned in
assignment.
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REFERENCES
Books & Journals
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pp.241-260.
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amongst hotel accommodation managers. International Journal of Hospitality
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Hopeniene, R., Railiene, G. and Kazlauskiene, E., 2015. Potential of virtual organizing of
tourism business system actors. Engineering economics. 63(4).
Hovhannisyan, N. and Keller, W., 2015. International business travel: an engine of innovation?.
Journal of Economic Growth. 20(1). pp.75-104.
Hudson, S. and Thal, K., 2013. The impact of social media on the consumer decision process:
Implications for tourism marketing. Journal of Travel & Tourism Marketing. 30(1-2).
pp.156-160.
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Jaafar, M. and et. al., 2011. Entrepreneurship in the tourism industry: Issues in developing
countries. International Journal of Hospitality Management. 30(4). pp.827-835.
Kelly, C., 2010. Analysing wellness tourism provision: a retreat operators' study. Journal of
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Lashley, C. and Morrison, A., 2013. In search of hospitality. Routledge.
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emotional experience. Culinary taste, p.165.
Law, R. and et.al., 2015. Distribution channel in hospitality and tourism: Revisiting
disintermediation from the perspectives of hotels and travel agencies. International
Journal of Contemporary Hospitality Management. 27(3). pp.431-452.
Lynch, P. and et. al., 2011. Theorizing hospitality. Hospitality & Society. 1(1). pp.3-24.
Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
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tourism, and leisure. Routledge.
Murphy, P.E., 2013. Tourism: A community approach (RLE Tourism). Routledge.
Nwosu, B., 2014. Hospitality education: sustainable empowerment opportunities for Nigerian
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Pulina, M., Detotto, C. and Paba, A., 2010. An investigation into the relationship between size
and efficiency of the Italian hospitality sector: A window DEA approach. European
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