Interrelationships, Integration, and Planning in Hospitality & Tourism

This report delves into the intricate relationship between the hospitality industry and the broader travel and tourism sector, analyzing their interdependencies and how they mutually support each other. It examines the implications of integration strategies within the hospitality industry, exploring both horizontal and vertical integration models, and their effects on business operations, market positioning, and technological advancements. The report further explores the development of a business plan, outlining operational requirements, resource allocation, and strategic decision-making for a hospitality business, considering factors such as accommodation providers, packaging holidays, and business travel. It also touches upon the role of technology in the hospitality sector, discussing its impact on customer service, operational efficiency, and overall business success. The report uses case studies of major firms like TUI and IHG to illustrate key concepts and provide practical insights into the industry's dynamics.

Hospitality in travel
and tourism sector

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Discuss interrelationships between hospitality industry and wider travel and tourism
business...................................................................................................................................1
TASK 2............................................................................................................................................4
2.1 Analyse the implications of integration to the hospitality industry..................................4
2.2 How integration has affected a hospitality industry.........................................................5
TASK 3............................................................................................................................................8
3.1 Develop a rationale for a selected project clearly justifying decisions...........................8
3.2 Develop a plan for a hospitality business ........................................................................9
CONCLUSION..............................................................................................................................11
REFRENCES.................................................................................................................................12

INTRODUCTION
The term hospitality provision entails with several rules and regulations in respect of
providing effective services to customers. Hospitality industry always act as support system for
travel and tourism industry and the reason for this is that the kind of services that they offer to
the people is one of a kind and is very essential if the people want to make sure that the travel
experiences that they want are memorable and enjoyable. Along with this, hospitality industries
are tend towards getting higher customer satisfaction level and involves various activities, i.e.
transportation, boarding etc. Although, good communication skills are required for this so as to
gain higher customer satisfaction level. In UK, hotel enterprises generated a total revenue of 17.4
billion British pounds, contributing the most value to the UK economy compared to other
accommodation services. The present assignment will be describe interrelationship between
hospitality and travel and tourism businesses. Readers will also come to know about implications
of integration to hospitality industry and how it can affected entire business. There will be a
discussion upon developing a plan which involves operational requirements of business
organisations in relation to allocation of human resources.
TASK 1
1.1 Discuss interrelationships between hospitality industry and wider travel and tourism business
Travel and tourism industry comprise with recreation of activity which is created for
entertainment purpose, i.e. fun, leisure and business trips. In this present era, travel and tourism
sector has achieved lots of importance by providing luxurious experiences to people. After
conducting a market study, travellers select any destination which is popular among customers.
TUI is a leading company of travelling industry by having a revenue of £15,051 million. The
firm offers a wide range of services, i.e. travel packages, accommodation, foods etc. that assists
to attain and retain numerous customers. On the other hand, Intercontinental Hotel Group is one
of the biggest accommodation service provider organizations in UK. The organisation has more
than 7000 employees and annual revenue of $1,803; IHG belongs from hospitality industry
which offers, different services such as- food and beverages, restaurant, accommodation etc.
Although, both mentioned businesses are connected with each others due to their offerings. In
addition, both have similar client base. In addition, TUI group formulates holiday packages by
considering the products of services of IHG on the other hand IHG depends on the clients of
TUI Group. Along with this, these organisations have strong bond with each other in context of
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services as in the one, another association is not capable to satisfy the needs and demands of
tourists. Along with this, travel and tourism business play a vital role in growth and success of
hospitality industry as it is associated with service sector. It has broad category of field,
including – event planning, hotels, theme parks, transportation and further more. Along with
this, accommodation facilities also provided by hospitality sector to tourists in three to five star
hotels, pub, bars, clubs, night restaurants etc. Below is described certain accommodation
providers which are involved in hospitality sector, such as-
 Hotels – While tourists arrive their final tourism destination, foremost they want to
check into their inns room and unwind, specially long hours of travel. It is necessary that
guests should be treated with proper or utmost care as they get tired and chances of
irritating after trip. Accommodations is one of the crucial aspect of travel and tourism
business as travellers usually wants to opt budget packages in one to three star hotels
whereas some others want to opt higher packages offerings 4 or 5 star accommodations. Motels and guests house – A motel is necessary for small hotels that specifically
designed for motorways visitors. It is originated from Us where motor trips become the
norm. In this, after a day of travelling people want a convenient place where they can
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rest or spend a night. On the other hand, guest house are liable to provide similar
affordable services to travellers. Cruise ships – Cruise ships initially cooked for the well off, however as expenses were
brought down and new business procedures were made, they are currently more
moderate to the normal wage worker. Most of the firms provide long haul to short haul
cruises, in which some of them are inclusive which requires patrons to pay.
Interrelationship between hospitality and travel and tourism business: -
Hospitality industry involves certain service providers to travel and tourism industry.
For the purpose of business or leisure, people usually goes for travelling and spend significant
amount or money; guests usually wants to reap all advantages which are offered by hotels at
premium prices.
Packaging holidays – Hospitality industry has a vital role in packaging holidays. Hotels which
provides packaging holidays depend upon the price paid for the package. Along with this, these
holidays are purchased in mass so that customers can get benefits from hotels in terms of rates
and airline ticket prices. Clients may settle on convenience on room just premise, informal
lodging, half board, or all the more once in a while, full board premise. Travel specialist
delegates consistently determine the status of their customers at their inn to guarantee that they
are having a charming time.
Business travel - Businessmen particularly settle on inns which are furnished with the vital
offices to work easily. They scan for inns with business focuses, Wifi or digital web get to,
meeting rooms and gathering regions, and additionally different administrations, for example,
24 hour clothing and cleaning. They may likewise endeavor to fit in some time for relaxation,
especially in the middle of gatherings, where they would either invest energy by the pool, at the
spa, or out on the town. Be that as it may, because of the idea of business travel this isn't
generally conceivable.
Visitors attractions - A guest fascination is anything which gets individuals talking or that is
important to guests, visitors and others. Attractions may appear as synthetic manifestations, for
example, historical centres and amusement parks, or common attractions, for example, regular
parks. Amusement parks are perhaps the most prevalent guest attractions, all in all observing a
great many guests on a yearly premise. Disneyland happens to be one of the world's most
mainstream lead attractions, and can be found in the United States, France, Japan and China.
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TASK 2
2.1 Analyse the implications of integration to the hospitality industry
Integration is generally concern with synergy as well as connectivity between two or
more organisation. This is also suitable for travel and tourism industry as they can consider
integrations and work together for the purpose of achieving business goals or objectives in an
appropriate manner. TUI Group is one of the best example of travel and tourism sector because
it has better control on the distribution chain so they focus on providing training and
development of individual and train people from inside rather than outside employing. It is an
essential in which organisations can share ideas, available resources as well as funds and
customers that support in raising profits and productivities in an effective manner (Abubakar and
Ilkan, 2016). Integration is a beneficial tool for business success that consider the horizontal and
vertical. The integration has been popular in 1900's as firms have their aims or objectives that to
reach at economies scale by operating particular business at cheap costs. In the present era, every
businesses are going to be closed for enhancing their growth as well as satisfy customers with
more appropriate manner. Therefore, the organisation which deals in travel and tourism sector,
are focusing on making various strategies and adopt tools or technologies for the purpose of
achieving set targets or goals in an appropriate manner. Integration always support in creating
collaborations and coordination as TUI firm is one the best example that integrated with number
of businesses such as multiple hotels, guest houses and airlines etc. it can be understand by
categories into two major aspects such as; Integration can be simply referred as the aggregation
of more than one units in a unique manner so as to build larger single association. This has been
noticed that travel and tourism sphere along with hospitality sector is being greatly impacted
from such kind of combination of units. There are mainly two kinds of integration that is known
as horizontal & vertical. This is being discussed below
Vertical Integrations:
In this integrations, firm purchase another company for the purpose of maximise wealth
and create better brand image in the marketplace with efficient manner. Therefore, organisation
focus on hiring suppliers in the distribution chain that called vertical integration. It is a useful
aspect that many of firms are considering for their growth and sustainability advantages in more
appropriate manner (Alberti, 2014). This will support in reducing more expenses and costs while
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running the business operations in an effective manner. Vertical integration is the process in
which consider the mergers or acquisition agreements with partners as well as other firms who
are entering in the distribution chain. Accor Hotels was take over by Marriott Hotel for
developing the business and created best image in the market. Accor Hotel and Toronto-based
parent company also merged and now they are achieving higher growth or generating profits so
that set targets or goals can be accomplished in well mannered. In vertical integration, two or
more stages of manufacturing or production division used top combine together in order carry on
identical chores in effectual style. This as a fruitful outcome aids in minimising overall costing of
producing goods and services. Therefore, it is contributing a lot in enhancing the effectiveness of
ventures.
Horizontal Integrations:
In this integration, two organisations are integrated and make a big firm which identical
in the form of products or services. the main purpose of horizontal integrations is to build market
image and maximise wealth so it is the combination of two organisation for developing the
particular business. The example is, Marriott Hotel has take over of Starwood Hotel & Resort in
the value of 12,2 billion US$ for creating positive and good brand image in the market. They
also formulate strategies for developing business with the help of acquisitions and mergers.
Therefore, it can be said that horizontal integration is one the best form which support in
increasing capabilities as well as resources for achieving predetermined goals or objectives and
develop business with more appropriate manner (Bowie and Mariussen, 2016). Horizontal
integration is a special type of methodology where by two or more companies that is of totally
contrasting filed. They come together for working under similar administration so as to provide
best quality services to large number of customers.
2.2 How integration has affected a hospitality industry
Numerous of companies which are dealing in hospitality areas such as Marriott
international, Accor hotel, Greene king and many more has been applying this concept of
integration in their firms so that to improve their capabilities and efficiencies in minimum
interval of time. Some of the major impacts of integration to the hospitality industry could be
better understood by analysing below points :
Technologies: It is also an important factor which creates great impact on organisations
of all sectors including travel and tourism business. As technology has developed so far, which
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makes it compulsory for companies to integrate it in their system. Introducing latest technology
and innovation in organisation system helps in creating modifications in business activities in a
profitable way. For this process, companies are required to analyse situation of marketplace and
trends to evaluate changes required. In addition to this, firms like Accor Hotels requires to adopt
latest technologies as well as various tools or techniques to improve its operations in an effective
manner (Bunakov and Zhukov, 2015). This would help in interacting easily with customers as
well as in taking their feedback about services they have availed. Taking perceptions of
customers aid firm to understand strengths and weaknesses of its services so that they can make
necessary changes and provide services in an effective way. Technology aid firms to carry out
their operations in a profitable way as it reduces time of execution as well.
Branding : The term brand itself is a summation of particular emotions which is linked
with personalised experiences in context to brand. The success of firms in tourism domain is also
relies on the several methods affiliated with branding. Such techniques are being acquired by
main players of tour industries for enhancing the level of production as well as profitability. For
example, Marriott hotel is enforcing different associations in similar chores for attaining mutual
goal. The main of doing this work is to bring creativity in business activity so as to seek attention
of more and more travellers towards their deliverables. It has been found that common civilians
generally get attracted towards most popular brands because they understand that famous brands
used to cater good facilities (Zeng and Gerritsen, 2014). This as a result helps in building trustful
relationship among citizens of all over world. Hence, corporations can increase their rates of
sales in very less time period by applying construct of integration in their venture.
Increment in globalisation : This merging action is rising the level of globalization
which is bringing benefits for companies which are associating with industries of hospitality.
Company like Starwood Hotels are connecting them from several other associations for full
filling their basic needs. For instance, for raw materials they are trying to connect with
impressive units which would supply them specific raw constituents in accordance to their
requirements. This in turn supports them while carrying out commercial activities in effectual
modes. By this way, company can develop their merchandises and services at minimum
investment which as automatically assist in catering such facilities at cheaper rates to their
expected consumers. On the contrary, in this context various limitations or issues are also faced
by them. Hereby range of competition is being risen and is yet increasing on constant basis. By
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this way, whole user base of referred organisation is getting reduced since people are moving to
different another ventures that would offer them services at affordable prices. On the other hand
some important aspects of firm are getting negatively impacted (Xiang, Magnini and Fesenmaier,
2015). Regrading this, components like cultures, traditions, trading actions, terms & conditions
and many other things may influenced in drastic style. For instance, rules and regulations of
some other company from which Starwood hotel is being inter - connected might not match with
them. This may create conflicts in current as well as upcoming days.
Reduction in entire quality : It has been recognised that either work load is being
reduced at maximum level by the introduction of integration conception in hospitality or tourism
sector, but at the same time, the gross attribute or quality of deliverables and services that has
been designed by Greene King is being trimming down. The main reason for this is the
completion of working which has been done by more than one association or individual. When
numerous of people from variable departments perform together then quality got affected
automatically since sometimes team members may not contribute each other in better ways.
Thus, overall services would developed is of low quality (Vanhove, 2017). This may decrease
the attraction of travellers towards them as they are expecting for supreme class tour and travel
servicing.
Lack of knowledge : Whether organisations are conducting corporation – al chores by
using concept of integration, some of the firms are not having adequate idea regarding the same.
For example, various complications are being faced by Intercontinental hotels as workers who
are carrying out daily organisational works are not comprised of proper education associated
with integration prospects. They are taking use of horizontal as well as vertical combination. At
the identical time frame, they are attempting to enter into new market place so as to enlarge their
businesses in different other areas where in their existence is not present (TStephenson, 2014). In
this context, mentioned corporation is not appropriately performing as entire manpower of Inter
Continental Hotel is having lack of knowledge. Therefore, they are not capable of searching
about needs & demands of existing users and as a bad outcome performance of corporation is
getting lower on regular basis. They are also not acquiring competitive advantages due to this. In
order to cope with such issues, manager of referred venture should arrange suitable and attractive
training classes for their newly recruited employees along with old one. By this manner, workers
would receive correct cognition and they could easily start their work in right directions. This in
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turn helps company in upgrading the existing level of their performance and reaching all
predetermined aims and ambitions.
From above based analysation, it can be stated that integration in hospitality sector is
impacting different corporations in positive as well as negative manners.
TASK 3
3.1 Develop a rationale for a selected project clearly justifying decisions
Since it has mentioned in present scenario that Cafe Cappuccino is going to carry its
business in new market era of food and beverages. Therefore, it needs to analyse growth of
business as well as grab opportunities present at marketplace in order to get benefits accordingly.
For this assistance, its management has conducted a survey to analyse market situation of
particular region which helps in getting more revenues. Along with this, such technique also used
in running the operational activities of an organisation in a proper way. Further, for introduce
change in production managers need to formulate strategies in order to influence people adopt
the same (Dickinson and Norgate, 2014). Superiors of Cafe Cappuccino should possess
motivational skills to encourage workers to adopt changes and work in desired manner. Further,
they are required to employ qualitative and experienced cooks in workplace who help in making
the best food and beverages according to customer taste. Managers should offer new products on
discounts and affordable prices to attract consumers according to their purchasing power and life
styles. Services should provide in effective way and on time which helps in getting high
customer satisfaction as well as retention for longer period of time. This process would help in
getting more revenues and high return on investment. In addition to this, they should make an
action plan which is required to carry out various activities in an appropriate manner. It includes
requirement of resources like labour, raw materials, new machineries, finance and more (Dredge
Airey and Gross, 2014). The main factor in this process is to analyse cost required for carrying
new business operations. According to requirement, employers need to analyse source available
at marketplace from where they can raise funds easily. For further process, management of this
firm used to adopt best essential tools and techniques for developing the organisational culture
and system as well as grab opportunities of market place in order to enhance profitability and
productivity.
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Since people of UK are varied on the basis of life style, preference, taste and
standardisation therefore, Cafe Cappuccino is required to analyse all these things in order to
make production better. In context with food and beverages, customers always look out
something new and on different prices. Before availing such services, they used to compare
product-service and price of commodities of a restaurant with its competitors present at same
marketplace. Thus, this firm needs to evaluate choice of customers first and provide services
accordingly. Its management has made various strategies like offer products on different
discounts like first visitors of a day will get 10% discounts and weekly provides free vouchers to
a lucky customers who used to come daily and more (Guttentag, 2015). These policies help in
attracting more and more consumers for longer period of time as well as retain them with
products also. Apart from this, another factor that company needs to be concern for opening its
new outlet is to locate best suitable place. For this assistance, management of Cafe cappuccino
has realised that in UK, the best location and city to open a new outlet in the field of food and
beverage is London. This city has world-class tourist attraction and culture diversity due to
which many tourist of different cities and countries used to visit its historical place. Therefore, it
is consider as best location for opening an new business especially in food and beverage sector.
So, to gain high number of customers Cafe Cappuccino should launch its new business in market
era of London.
The next factor of analysis which needs to consider by management of this cafe is
marketing strategy. It plays an important role in establishing a brand image of a company. It
includes various techniques to promote and advertise products or services of an organisation in a
proper way (Kropinova, Zaitseva and Moroz, 2015). In context with opening a new venture,
Cafe Cappuccino adopt various marketing techniques to promote its products at marketplace
which helps in getting number of visitors as well as acquiring better positions.
3.2 Develop a plan for a hospitality business
Cafe cappuccino is going to open its new venture in marketplace of London. The firm
needs to study about marketing opportunities in market which raises benefits of the firm. Along
with this, management of coffee shop needs to assess the economy as well as try to locate
sources from where they can raise finance for carrying out business activities accordingly.
Stage:1
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Development : In restaurants, people are mostly comes to spend their time with family
and friends. In such place they checked in to enjoy delicious and enrich tastes of foods or
beverages. Therefore, it is essential for cafes or restaurants to provide better services to
customers as well as provide them better quality of products. This process is generally not for
establishing or new ventures (Law and Fong, 2015). Therefore, Cafe Cappuccino needs to
develop its organisational culture by employs highly trained workers who are best in cook and
provide services well. Along with this, they need to concern more on hygiene of food and
beverages which impacts a lot on health of people. So, should provide healthy and nutrition
products only.
Stage 2: Design
Ambience - In UK marketplace, customers are mostly seeks on luxury and healthy food
as well as on atmosphere of restaurants. It gives them an ambience of satisfaction and high
retention with such product-service. Good ambience help in getting retention of people for long
time (Manhas and Tukamushaba, 2015).
Culture – Culture of an organisation reflects its type of services and ethics. An industry
having diverse culture at workplace shows effectiveness of products and quality. So, employers
of this cafe are required to put more efforts on developing and maintaining a diverse culture. In
restaurant like waiters, managers and shelf shows face of business, therefore, for launching an
outlet in new area, this firm requires to include well trained employees in staff who provide
better customer service.
Functional Area – Cafe Cappuccino also requires to concern on the activities used to
interact with customers. For this assistance, it uses online booking and payment services to
provide better services to customers (Minazzi, 2015).
Stage 3: Operations:
In order to develop and design an action plan, a firm like Cafe cappuccino requires to
bring modification in operational activities also which helps in enhancing productivity and
profitability in a short period of time.
Recruitment: It is the most important factor in which, management of Cafe Cappuccino
needs to hire high skilled and experienced workers at workplace. New recruiters should possess
abilities like to deliver better customer services which helps in achievement of goals or
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