Hospitality Provision and Integration in Travel and Tourism: Report

This report comprehensively examines the hospitality industry's significance within the travel and tourism sector. It begins by outlining the scope and scale of hospitality services, including accommodation, food and beverage, and recreational activities, emphasizing their crucial role in supporting tourism. The report then delves into the implications of both horizontal and vertical integration strategies, using Thomas Cook as a case study to illustrate how these approaches impact business operations, resource sharing, and market competitiveness. It explores how integration enhances customer experiences and builds brand loyalty. Furthermore, the report develops a rationale for a new hospitality business, proposing a development plan that leverages integration strategies to optimize service delivery, expand market reach, and achieve sustainable growth in the dynamic travel and tourism landscape. The report underscores the interconnectedness of these sectors and the benefits of strategic integration for business success.

HOSPITALITY PROVISION
IN TRAVEL AND TOURISM
SECTOR

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................4
1.1 Scope and scale of the hospitality industry within the travel and tourism sector.................4
TASK 2 ...........................................................................................................................................6
2.1 Implication of horizontal and vertical integration of tourism sector with hospitality
industry........................................................................................................................................6
2.2 Impacts of integration and the organisation response to its consequences..........................7
TASK 3 ...........................................................................................................................................9
3.1 Develop a rational for a new hospitality business.................................................................9
3.2 Development plan for hospitality industry..........................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The hospitality businesses is most important growing service industry in tertiary
sector/service sector. The service industry is not involved in any kind of product deliver. Service
industry provides services to their customer that can be experience by consumer. The
information technology, telecom industry all are service sector business and hospitality industry
is also part of this sector. The business engaged in hospitality services are engaged in providing
event management, lodging, accommodation, food services to their customers. The travel and
tourism sector is also growing at faster rate with integration of hospitality industries. The
hospitality services is having important role in the growth of the tourism sector at faster rate
(Barros, Butler and Correia, 2010). The countries are involved in delivering better services of
tourism sector along with the hospitality services. AS the travel and tourism is the major source
of the economic growth in the country. The companies like Thomas cook, TUI group and others

are involved in tourism services along with integration of hospitality services in their business to
provide an god experience to the customers on order to build customer loyalty with brand.
This report studies the vertical and horizontal integration of the hospitality services with
travel and tourism sector. This report enable student to discuss about various operations of the
hospitality services that are involved providing a growth opportunity to tourism business of the
country. The assignment discuss about the wider scope of the hospitality services in the travel
and tourism services of the company.
Company introduction- Thomas cook group is established in 2007. The company
headquarter is situated in the England, UK. The company services are delivered globally in
different countries of the world. The Thomas cook is making revenue about 7,812 million euro
and the no of employee working with the business are approximately 21,940. the company is
dealing in various services with the integration of hospitality service provider. Thomas group
deals with the hospitality and tourism sector. The company is having about 97 aircraft. The
company is having its travel agencies to deal with the customers (Brotherton, 2012). Total stores
outlet of the Thomas cook are ranging up-to 2,926 engaged in service delivery to about 19.1
million customers annually. The Thomas cook is the 2nd largest company in the market of Europe
and UK dealing inn tourism sector along with integration of hospitality services.
TASK 1
1.1 Scope and scale of the hospitality industry within the travel and tourism sector
The hospitality industry is serves the services to the customers that are hospitable. If a
person is using company services for the accommodation is the part of the hospitality industry,.
This sector involves the business engaged in the services like food and beverages,
accommodation, events, accommodation, recreational activity, entertainment etc. This
constitutes the service deliver through the hotels, restaurant, cafe, shopping mall, theatres, live
events, amusement parks etc. All these business are involved in providing hospitality services to
the customers. This also includes the transportation services of the companies that is important
part of hospitality industry (Darcy and Pegg, 2011). All these industries are maintaining their
standard quality product in order to enhance customer satisfaction level and enjoy good
experience with the various companies. The various hotel chains like international hotel group s
involved in providing services and are dealing in 4 and 5 star hotels and resorts. This group is

one of the largest group engaged in providing accommodation services successfully to customer
in the market of UK and globally both.
The tourism sector is involved providing services to the visitors that are willingness to
visit different destinations in the world and engage themselves in various kind of recreational
activities. This sector also serve their services to the tourist involved travelling activities because
of different motives,. The motives for the customers can be business meeting, cultural attraction,
tourist destination attraction, recreational and leisure time. The travel and tourism industry is
involved in various types of services like budget packages, dealing forb different visitors
attractions, consultancy services about the product, company packages, tourist destination. The
travel and tourism industry is the most important sector which is having great contribution in the
economic growth of the country (Dickinson and et.al., 2014). The various companies like
Thomas cook, TUI group, trip advisor etc. are engaged in their travel and tourism sector
services. The min objective of this sector industry is to provide better experience of travelling at
different location and enhancing their satisfaction level in order to gain customer loyalty. This s
helpful in making the customer to be involved in purchasing with the company gain and again.
The hospitality services is having great importance in the success of the travel and
tourism sector. The travel industry at smaller business level is the integration of various
hospitality services. For. ex. The family going for an tour to some specific location includes the
services f5rom the hospitality sector like airlines, hotel, restaurant, entrainment services
providers etc. This tour of family involves the air tickets, hotels and restaurant for comfort stay
and food and beverages and next is the recreational activities like, event, night parties, theme
park, amusement, park, theatre, shopping malls etc. so, this can be concluded that the hospitality
services is playing important role in the growth of travel and tourism sector (Heung, Kucukusta
and Song, 2010). The companies involved in the travel and tourism sector are consultancies,
agencies that are interlined their services with the hospitality service providers like with
restaurant cafe, resorts, motel, hotel shopping malls, amusement park etc. These two sector are
linked with each other to large extent. The companies like Thomas cook travel and tourism
industry is working in collaboration with different hotel chains, restaurants etc. the hospitality
services industry act as supplier of the travel and tourism sector. The various services that are
utilise by the travel and tourism sector to flourish their business are like accommodation, food
and recreational activities.

The hospitality services are providing various types of accommodation services depends
upon the travel package booked by the customers from the travel agency Thomas cook. This
involved in providing wide range of services through the different kinds of hotel 3 to 7 stars
hotel. The accommodation services involves hotels, motel according to the need of customers
and packages they are offered to by Thomas cook group.
The food and beverages is another type of hospitality services that are provided to the
customers of the travel and tourism industry through the wide range of business like bars,
restaurant, cafes etc. the hospitality service provider are focus on the quality of the product of
food and beverages industry in order to attain higher satisfaction level of customer which results
in involving to customer visit again (Hjalager, 2010).
The recreational services and entertainment services are provided to the visitors of the
travel and tourism industry through amusement park, theme parks, shopping malls, theatres,
conferences etc. the customer are engaged in gong to club, pub,. Night parties to enjo0ye their
holiday packages.
So, this can be concluded that the both the hospitality services and the travel and tourism
sector services are interlinked and dependent on each other. The travel and tourism is dependent
on hospitality services at s supplier of various services to the tourism companies ,like Thomas
cook in order to ensure better experience and quality service to the customer of industry. While
the travel and tourism company provide clients and customers to the hospitality services in order
to enhance their business through increasing sales.
TASK 2
2.1 Implication of horizontal and vertical integration of tourism sector with hospitality industry
The integration of businesses leads to the mutual development of the both companies
which are merged to accomplish some specific goals. Integration results in sharing of the
resources, competitive capabilities and customer base with each other. The integration helps in
the carrying out the operations effectively and efficiently. This will results in the higher
productivity of the companies. The different sectors and industry go for the integration of their
services and products in order to gain competitive advantage and capture wide range of market
size. This contributes in the profitability of the both the companies. The companies involved n
the travel and tourism sector and hospitality sector are having similar dan common customer

base, so the merger of these industries can increase the profitability of business in many folds.
The companies dealing with similar product line or with common customer can be benefited by
adopting the integration systems in the companies (The Meaning of Vertical and Horizontal
Integration. 2000-2017). The integration involves collective functioning of one or two industries
which are dealing with similar product and services or the companies which are part of their the
operational hierarchy of the single business. This integration works for a single motives engaging
different business in delivering services to common customer base. The integration may be
vertical or horizontal depending upon the type of products and services they are dealing with and
the position of company in the hierarchy.
The vertical integration is merger of the two companies that are part of the hierarchical
structure of the operations of the industry. This vertical integration involves the merger of
business from the suppler or the distributors changing with the manufacturing business of
particular product line. In the travel and tourism sector various type of the hospitality services
industries are the part of their hierarchical system (Hudson and Thal, 2013). The hotels,
restaurants are the supplier for the travel and tourism sector. Thomas cook has acquired with
many companies of the hospitality industry to function as unity for the growth of organisation.
The Sentido hotels, Casa cook, Smartline are the hotel chain that merged with the Thomas cook
companies in order to share their customer base. With help of vertical integration the companies
the Thomas cook can achieve higher profitability and lowers cost. This help in developing brand
image in operational change of the organisation. The vertical integration of the Thomas cook
with the Sentido hotels increases its product line or services line. This leads to expansion of
business services to attract more customers towards the company. The vertical integration builds
good employee relation in overall chain of operation starting from the supplier to the distributors.
Thomas cook merged with Casa cook hotels to establish a delivery of standards quality services
to the customers of the company. This will results in sharing of resources and customer base of
Thomas cook with the hospitality industry (Hospitality & Tourism. 2017). The merger of
Thomas cook with easy jet is and vertical integration which helps in developing total travel
product packages effectively and efficiently gaining competitive advantage in market. This helps
in expansion of the serve line of Thomas cook and engaged in providing better quality services to
the customers.

The horizontal integration is the merger or acquisitions of the companies that are working
with the same product line and services in the market place. This helps in the expansion of
business. The vertical integration is merger between two small companies in a single big
company. The horizontal integration of Thomas cook with other companies helps in enhancing
their capabilities. The Thomas cook merged with the various smaller travel and tourism industry
to expand its business. The company merges with airtours, club 18-30, manos etc. Manos is the
tourism industry of Greek countries. So, horizontal integration of the Thomas cook with this
small industry helps in expansion of company services to globally. This helps in attaining
competitive advantage in the global market. Horizontal integration of the companies develop
higher customers base and share their competitive abilities with other companies in order to
generate more revenue (Law, Qi and Buhalis, 2010). The Thomas cook acquired airtour in order
to gain competitive advantage in the market and build customer loyalty. Direct holidays and
crests are some of the other mergers and alliances of the Thomas cook company in order to
expand its business globally and engaging the company operation in dealing with the customers
of large no. of different countries.
2.2 Impacts of integration and the organisation response to its consequences
The integration of the two companies bring many changes in the organisation structure,
behaviour and working environment. The merger of the travel and tourism companies with the
hospitality industries affects the company functioning to the large extent. The integration may
contribute positively or negatively in the growth of both the organisation collectively. The affect
of integration in the functioning of the both the tourism and hospitality industries are as follows:
Globalisation: The integration helps in the globalising the businesses. It helps in
expanding the different market all over the world. The integration of the Thomas cook with club
18-30 helps in developing a large customers base in different countries of world. This helps in
strengthening the customer base of the both the companies (McIntosh, Lynch and Sweeney,
2011). This helps in development of companies globally capturing the global market and
contributes in the global economy of the world.
Cost integration: The integration or merger of the two companies also integrate their
operations as well as their cost. The merger of the Thomas cook with the Casa cook hotel chain
helps in cost integration of both the company and enhances productivity. This increases the
production and ultimately reduces the cost incurred in the operation. This merger includes

deciding the price according to the business growth plan and also according to holiday packages.
The merger of Thomas cook with other hospitality industry helps in increasing their investment
capabilities and hence leading to inceres3ed profit margin by reducing the cost of operations of
both the companies.
Lack of knowledge: The integration of the two countries may bring positive results or
may be negative results in the profitability of the organisation due to extent of their knowledge
about market and other external environment. The comes may have lack of knowledge about the
strategic development, market plan, organisation culture. That affects the over all decision of
merger of companies.
Competitive advantage: The integration of the Thomas cook with the other hospitality
industry helps in building competitive advantage in the market places. The company is working
in integrated way to result in a successful organisation mergers (Medlik, 2012). This integration
leads to sharing of valuable resources, motivated and skilled human resource and capabilities of
the companies in order to gain competitive advantage by both the competencies and this built
healthy competitive market in the contributes
Quality: The merger can leads to higher productivity and better quality services delivery
to the customers of bothy the companies collectively. As there is sharing of capability and
technological development between two companies leading to a services of better quality for the
customers.
Technology: The technological changes brings innovation in both the integrated
companies mutually. This helps in higher profitability of Thomas cook and integrated other
hospitality industry too.
TASK 3
3.1 Develop a rational for a new hospitality business
The rational approach to the development of new hospitality business along with the
integration of the travel and tourism sector involves various planing and controlling approach to
establish a successful business. The rational development for hospitality business plan involves
the integration of various services in order to attract a large customer base and satisfy them
through quality services at lower prices.

Idea: The idea generation is very important for rationalise a particular business plan no
matter what will be the target industry. The hospitality services can include spa, salon,
swimming pool in the accommodation serves of hotels (Mok, Sparks and Kadampully, 2013).
This will increase the leisure time of customers with the company and increases the profitability
of the hotels hospitality services.
Market research: For development of any business plan market research is necessary for
analysing the success rate of the plan. The market research should be carried out with the market
in order to know about the interest and preferences of the prospective customers of the hotel
industry and its merger with the spa and salon services.
Target market: Defining the target market for the business plan is very much important
for the success of the new hospitality business. The target market for this business plan are the
upper middle class person who spend their income more in leisure time and luxurious facilities
provided by the hospitality industry (Pulina, Detotto and Paba, 2010). This integration of
services and hospitality industry can also target the visitors and customers of the Thomas cook
group who are interested in utilization of the luxurious facilities and ready to pay for the higher
rate holiday packages of the company.
Target location and size of business: the target location of the hospitality services new
business should be where there are more no. of upper middle level customers. The famous and
developed tourist destination like London, France can be target location fro development and
success of the business plan efficiently.
Investment: the development of any business pan and its execution n the practice require
investment. This rationale of new hospitality industry business requires the investment for the
merger of two services ensuring quality services according to the brand image of the company.
Licensing: the company should be licensed through the government agency and should
be authorised to carry out business in the market of UK.
3.2 Development plan for hospitality industry
The execution of the rationale developed for the new hospitality business requires various
factors to be considered (Scott, Peeters and Gössling, 2010). The development plan of the upper
planned business requires following to consider:
Development: This involves development of the strategies and policies in order to
implement the plan of the new hospitality services integration with the existing business. This

also involves planing the marketing strategies for the growth of new business n the hospitality
services in integration with travel and tourism sector.
Design: This involves Designing the interior and exterior architecture, ambience, culture
of the hotel and spa in the business and perfect execution of the plans in order to attract a large
customer base (Scott and Orlikowski, 2012). This helps in ensuring quality service delivery to
the upper middle class visitors and customers by the hospitality services.
Operations: this involves the appropriate execution of the operations like service
delivery, cleanlinesses, staffing, financing and legislation operations of the hospitality industry.
CONCLUSION
This can be concluded that the hospitality services is providing a larger growth
opportunity to the tourism sector. The hospitality sector along with the integration of the tourism
industry the different businesses are making huge no. of profit and engaged in building higher
customer loyalty by providing quality services. Along with the hospitality services the travel and
tourism companies like Thomas cook enable the their holiday packages along with total travel
product services to customers. This results in higher satisfaction level and good experience of
customers with the company. The organisation is planing their marketing strategies, developing
product more efficiently with help quality hospitality services to attract more customers and
making higher revenue for the Thomas cook group.
REFERENCES
Books and Journal
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provision amongst hotel accommodation managers. International Journal of Hospitality
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251.
Hjalager, A.M., 2010. A review of innovation research in tourism. Tourism management, 31(1),
pp.1-12.

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Medlik, S., 2012. Dictionary of travel, tourism and hospitality. Routledge.
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tourism, and leisure. Routledge.
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and efficiency of the Italian hospitality sector: A window DEA approach. European
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Online
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