Analysis of Hospitality Integration in Travel and Tourism (Semester 1)

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Hospitality Provision in the Travel and Tourism
Sector
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Table of Contents
Introduction...................................................................................................................... 3
Task 1 (LO1).................................................................................................................... 4
Task 2 (LO2).................................................................................................................... 6
Task 3 (LO3).................................................................................................................... 9
Conclusion..................................................................................................................... 12
Reference list................................................................................................................. 13
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Introduction
Hospitality industry is one of the most emerging industries across the globe that has
reached a new level of success in their business due to height demand of customers.
The market demand of the hospitality and tourism industry is booming up day by day
and this is why in every year numbers of tourists in incising rapidly. Travel and tourism
industry and hospitality industry are interlinked with each other. Functions of hospitality
impacts over tourism industry and play a vital role in providing more satisfaction and
reliability.
Easy Hotel Birmingham is one of the popular hotels of Easy hotel groups that are
located in the Birmingham. The hotel has distributed his business functions in more
than 36 new locations throughout the globe. However, the team was founded in the year
2004 by Stelious Haji-loannou with the burning desire of providing the customers more
satisfaction and reliability. They mainly provide luxurious accommodations, foods,
quality beverages and more facilities to their visitors. The key people of the company
are Guy Parsons, who is chief financial officer and Gary Burton, who is the chief
financial officer of the firm. Apart from that, the firm has shifted its functioning to the
online platforms as well. The company has launched its own website named,
easyhotel.com for extending the target market area and reaching more numbers of
targeted customers effectively. Thus, Easy Hotel Birmingham has successfully
reached their target sales revenue.
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Task 1 (LO1)
A. Discuss the scope and scale of the hospitality industry within the travel and
tourism sector and its interrelationship and examine the role of hospitality
function using your experience in your chosen organisation. [P 1.1]
In modern days, the demand of hospitality industry is booming up day by day. More
numbers of customers are showing interest to enjoy hospitality facilities. First of all,
tourism and hospitality are engaged in the process of satisfying the requirements of the
consumers as well as making high amount of profits for the stakeholders (Bavik, 2016).
However, this hospitality industry is the major contributor towards the development of
the global economy. This is a vast segment of business that includes tourism, hotels,
event planning, restaurants, travel planning, private clubs, managed food services and
others. Due to the verity in product line, the hospitality sector is successfully attracting
more numbers targeted customers to them. The hospitality industry has great scope in
current and upcoming future days to enhance their business functions and brand image
simultaneously. Some of the scope as well as specialised fields of the hospitality sector
are as follows:
Travel agencies
They provide convenience and assistance to people travelling to various parts of the
globe. They mainly assist in choosing and enjoying a tourism location (Chang et al.,
2019).
Airlines and railway travel
Both of these two industries are included in hospitality sector. Airline industry is an
industry itself but this is also possible to include this airline industry in the hospitality as
its basic functions is offering services and satisfying the requirements of the people that
matches the hospitality industry’s nature.
Event management
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This is the application of project management skills for organizing as well as managing
large scale events such as marriage ceremonies, conferences, parties, concerts,
conventions and others (Van der Wagen and White, 2018). Event management is one
of the trends in the current market that also has extended the scope of hospitality
industry.
Additionally, people are coming with new ideas of entertainment and enjoyment, for an
instance Cruise party is one of the popular trends that have influenced hospitality
industry to engage more numbers of customers. Therefore, within the travel and tourism
sector, hospitality industry such has great standard of current and future scope.
The hospitality and tourism is inter-related with each other and both have great scope
for further improvement and market domination in upcoming days. Hospitality industry
provides services such as transportation, accommodation, leisure, food and beverage.
Tourism is the activity that is done by tourists. Tourists have great enthusiasm for
travelling in different parts of the globe, where they will enjoy several facilities including
accommodation, foods, drinks and others. All these facilities are provides and
undertaken by the hospitality sectors such as Easy Hotel Birmingham. Additionally,
hygiene, cleanliness and proper regulations are maintained within the firm by hospitality
organizations. In much country, tourism is one of the main medium of generating
income. They contribute to the growth of the global economy.
Hospitality functions include hotel operations, accommodation, and lodging, providing
foods and others that all the business organizations conduct for managing their
customers and providing them more satisfaction.
On the other hand, tourism industry always cares about their customers as the whole
industry has been standing over the satisfaction of the customers. To provide all the
facilities and more satisfaction to the customers or visitors, tourism industry works with
hospitality sectors such as Easy Hotel Birmingham.
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Task 2 (LO2)
A. Explain integration in hospitality sector organizations and analyse with
example drawn from your organisation or other relevant organisation how
horizontal and vertical integration in the industry (you may consider wider
tourism and hospitality sector) affects the hospitality businesses. [P 2.1]
Integration in hospitality industry is regarded as one of the most effective technology
and strategy, which has assisted the industry to extend their performance to the
maximum level (Wu et al., 2018). Additionally, cost of operations has reduced due to
integration within the hospitality industry. Integration is basically a cloud based software
and services provider, which develops integrated technology platforms to drive
marketing and sales performance across the hospitality and travel industry.
There are basically two types of integration: vertical integration and horizontal
integration that are used for betterment of business functions.
Horizontal integration
Horizontal integration is regarded as the special process through which a business
gathers competitive business that may be different in nature. Through using this
business strategy, organizations expand their current portfolio or extend presence in
another geographic area for surviving and growing overall business structure. The
merger, which took place between the Intercontinental Hotels Group and Kimptons
Hotels, is an illustration of the horizontal integration (Brendehaug et al., 2017).
Organizations engage in horizontal integration for benefitting from synergies.
Additionally, the main reason of suing this horizontal integration in hospitality industry is
reducing the competition. Hospitality industry is all about providing satisfaction and
reliability to the customers and due to the booming demand in the market, the
competition in this industry is also high. Therefore, hospitality organizations like Easy
Hotel Birmingham use horizontal integration in their hospitality firm.
Vertical integration
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Vertical integration is regarded as one of the most effective competitive strategy that
allows an organization having control over the exhaustive stages of production and
distribution. For an instance, Hotel Hilton often bought other hospitality firms with the
aim of reducing the market competition. This is regarded as an example of vertical
integration within the hospitality industry. Along with this integration, most of the hotel
business organizations intended for increasing its significance across the market
(Brendehaug et al., 2017). Based on the different needs of business, vertical integration
may be backward or forward; however, there are three types of vertical integration
including backward, forward and balanced. The main advantage of vertical integration is
that it assists to make the supply chain management system smooth and fine.
Additionally, this allows generating more profits in business, especially in hospitality
industry.
B. Discuss the impacts of integration and how the organisation decides to
respond to the consequences of integration. Consider both vertical and
horizontal integrations.
Both types of integrations: vertical and horizontal integrations have negative and
positive effect over the hospitality industry.
Vertical integration
One of the major advantages of vertical integration is that it creates predictability as
more data and information is available to the company. Additionally, this allows a
company such as Easy Hotel Birmingham investing into the internal assets, which can
specialize in the required skill set, instead of seeking vendors and contractors along
with specific skill sets. In other words, this allows making differentiation between itself
and other companies across its industry. This opens a new market. Furthermore, the
local market share of the brand is also possible to enhance through using this vertical
integration. Last but not the least, brands such as Easy Hotel Birmingham can cut
down the transaction costs that are regarded as one of the major issues in the supply
chain. This provides an opportunity to gain competitive advantages over their
competitors. Apart from this, vertical integration has negative side as well. For an
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instance, businesses that are previously involved with downstream and upstream
investments will more likely result to downfall in its actual flexibility, which is regarded as
a major disadvantage (Della Corte and Aria, 2016). Due to vertical integration, many of
the hotel organizations such as Easy Hotel Birmingham may face difficulty in
balancing issues. Alternatively, this can create entry barriers as well. In order to reduce
down these issues, business organizations such as Easy Hotel Birmingham prepare
their managerial system and workforce to face the challenge.
Horizontal integration
Horizontal integration refers to the special process of integrating along with the rival
competitors in the current market which offers similar products and services. There are
mainly two different methods; merging and acquiring through which integration is done.
In other words, this assists in business expansion to a profitable level. In order to gain
benefits, many of the company including Easy Hotel Birmingham have already used
this effective integration method. Its main purpose is increasing the product standard,
name and size of the firm so that business organization can reach a new level of
success in business. Hospitality industry is all about providing the highest level of
satisfaction to the valuable customers so that they come back again to the firm (Vellas,
2016). This enhances the efficiency of the hospitality sector such as Easy Hotel
Birmingham. Along with this, horizontal integration allows accomplishing economies of
scope that is crucial for business success. Negative sides include stunning economic
growth for the new enterprise, reduced flexibility, decreased brand image and others.
These can such impact over business operations of hospitality sector such as Easy
Hotel Birmingham. For dealing with these types of negative impacts of horizontal
integration, companies, especially hospitality sectors need to take special consideration.
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Task 3 (LO3)
A. Develop a rational for a new hospitality business/project outlining the product-
service concept [P3.1]
Concept Development
The key concept of this specific hospitality project is to develop a product-service
concept. This concept is surrounded with developing a hotel in London, UK. That hotel
will be based on eco-friendly tourism. There will be some solar panels, which will help
that hospitality sector to move down their cost of electricity. Additionally, it will help that
hotel to minimize the waste energy. They will also open a restaurant into their hospitality
service. In that restaurant, only the products that have been reproduced into the firm of
that hotel will be served. There will be different firms inside of that hotel, so that the
customers of that hotel can get feelings of village even from inside of London. It will
also help them to create an environment made out of pollution. The name of that hotel
will be “Hotel Marches”. The business objectives of that hotel have been described
below:
 To provide a sustainable eco tourism experience towards their consumer base
 To minimize the use of natural energy sources at certain extension
 To increase their sales up to 8% by the end of their first financial year
 To serve their different consumers with a range of organic foods and vegetables
 To achieve prefabricated completive advantage into the market of entire United
Kingdom
The visions of this specific hotel are to minimize the usage rate natural energy sources,
which is essential from the perspective of achieving environmental sustainability
(Eugenio-Martin and Inchausti-Sintes, 2016). In addition to that, the vision of this
particular hotel is to reproduce different vegetables and fruits in their firms so that their
consumers can enjoy a different ambiance while travelling into London. In addition to
that, they also want to provide restaurant service with their personally reproduced
vegetables and fruits so that they can attract different consumers towards their hotel
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and restaurant service at greater extension. Thus, it can be delivered that the main
objective of this restaurant and hotel service is to provide sustainable ecotourism at
greater extension.
Hotel Marches need to conduct market research before implementing their new
business proposal at certain extension. By conducting market research, they can easily
identify the flaws of their marketing plans. Additionally, it will also help them to collect
relevant information and data regarding the current hotel and hospitality sector of United
Kingdom.
B. Develop and produce a project proposal: target market, location, operating model
(including staffing), and design based on a thorough market potential analysis
with suitability and acceptability criteria in mind. [P3.2]
Target Market of Hotel Marches
The target population of this specific project will be the local people of London and
entire United Kingdom at certain extension. In addition to that, the tourists from all over
the world will be the target market from the perspective of this specific hotel. People
who love eco friendly tourism at certain extension will be the key target of these specific
hotel and restaurant service (Boniface et al., 2016). The local residents are also the
target market of this specific hotel at certain extension since the uniqueness of Hotel
Marches can attract local customers and residents to visit this place.
Location
This specific organization will be located inside of England, United Kingdom and the
location of the hotel will be in a crowded street so that it can get the attention of lots of
different consumers. They will choose such a location that is always covered with
different peoples. Any location of Regent Street will be perfect as the location of this
specific hotel and restaurant since that street is always covered with people. People
generally visit that place for conducting shopping, work and many other activities. Thus,
that specific location will be best for that hotel and restaurant service at certain
extension.
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Operating model of Hotel Marches
Hotel Marches is going to be small-scale hotel and restaurant service. For the initial
part, that hotel and restaurant service is going to hire 30 different employees. Out of
those 30 employees, 20 employees will be associated with providing service towards
the restaurants and the other 10 employees will be appointed to conduct different work
in side of the hotel.
The hotel will appoint a general manager, an assistant manager and a kitchen manager
for conducting the different working procedures of that organization. In addition to that,
Hotel Marches also need to appoint supervisor to manage their work force and working
procedures at an extensive and prefabricated manner. In addition to that, they will also
need to appoint an electrical engineer who will observe and control the solar panel.
Additionally, people with some degree in agriculture are also needed to be appointed by
the management group of Hotel Marches at certain extension (Vellas, 2016). The
electrical engineer is needed to have a qualified engineering degree in order to be
eligible for applying in this post. In addition to that, people who are willing to get
associated with the architectural post need to have a master’s degree in agriculture.
Lastly, the managers of that hotel are needed to have MBA degree in order to be
eligible for this post.
Design of Hotel Marches
The ambience of this hotel and the restaurant is needed to be eco friendly. In addition
to that, any form of discrimination into the hotel or restaurant service will not be allowed.
The cultural aspects of that hotel and restaurant service are needed to be sustainable in
nature. In addition to that, they need to design their interior in a sophisticated form so
that it can attract lots of consumers into their organization.
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Conclusion
After analyzing the entire study, it can be concluded that hospitality sector and industry
has some significant role into the entire sector of travel and tourism. Both tourism and
travel organizations are interrelated with each other. Hospitality industry generally offers
different types of accommodation and food service for their consumer base. It
influences the entire sector of travel and tourism from the perspective of travel aviation,
reception, attraction and others. There are different integration strategies that might be
adopted by different organizations in order to move up their market share to a far
greater extension. Lastly, a development idea of new travel and hospitality sector has
been comprised in this section. Different aspects like target market, culture, operating
model and design of the entirely new business sector has been represented in this
section.
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