Analysis of Hospitality Provision in Travel and Tourism Industries

This report delves into the dynamic relationship between the hospitality and travel and tourism industries. It explores the strong interdependencies between the two sectors, highlighting how hospitality serves as a crucial service provider for travelers, offering accommodation, dining, and other essential services. The report discusses the implications of integration, differentiating between vertical and horizontal integration strategies and their respective impacts on hospitality businesses. The analysis includes real-world examples, such as mergers and acquisitions, and examines how integration affects branding, pricing, market share, and overall profitability. The report concludes by emphasizing the benefits of collaboration, while also acknowledging potential negative impacts on the individual hospitality organization, such as decreased branding image and profits. The report is supported by relevant academic sources and online resources.

HOSPITALITY PROVISION IN
TRAVEL AND TOURISM

Table of Contents
INTRODUCTION...........................................................................................................................3
LO 1.................................................................................................................................................3
1.1 Interrelationships between hospitality and wider travel and tourism businesses..................3
LO 2.................................................................................................................................................3
2.1 Implications of integration to the hospitality industry..........................................................3
2.2 How integration has affected a hospitality business.............................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Travel and tourism industry is the fastest growing sector. It integrates with hospitality
industry and helps in improving economic condition of the nation. Present study will discuss
interrelationship between hospitality and travel business. Furthermore, it wills analysis
implication of integration to hospitality industry.
LO 1
1.1 Interrelationships between hospitality and wider travel and tourism businesses
There is strong relationship between tourism and hospitality. Hospitality industry is
considered as service providers for the travel industry. There are many hotels, restaurants those
which are offering amazing services to the travellers. Travel business conduct tour for the
visitors, they make connection with hospitality business those which can offer these visitors
facilities to stay and eat (Cook, Hsu and Marqua, 2014). Hospitality sector is integral part of
entire travel industry that helps in making people satisfy in destination and giving them amazing
experience. There are many big hotels, night clubs, food service providers those are offering
high quality services to travellers. Travel and tourism industry provides accommodation
facilities, transportation facilities to the visitors. This sector cannot meet with needs of
consumers without support of hospitality industry. Accommodation is the main aspect of
holiday packages that is provided by tour operators. Aviation industry also the part of hospitality
industry. Tour operators have to book tickets of the person. They ask for the budget of the travel
and accordingly design entire tour for them. As per their budget they book air ticket, hotel.
Visitors travel from one place to another from different purposes. Theme parks are considered as
most amazing attraction point (Tussyadiah and Pesonen, 2016). There are many theme parks
where travellers can stay. This is also the feature of holiday package. Thus, there is close
interrelationship between hospitality and travel and tourism industry.
The role of hospitality in supporting various types of travel and tourism such as business
travel, aviation, conference, theme park, visitors attraction etc. In order to that, hospitality play
role in increasing visitor attraction for hotels services, theme parks, resort facilities, restaurant
services etc. For example, Hilton and Thomas Cook connect with each other. Travel operators
are recommended to their tourist to stay in Hilton. Ultimately this type of interrelationship helps
in increasing business of travel and hotel. Taxi services are also connecting with hotels that helps
in easily reaching in the hotel place. It is easy to visitor who are not known about nations.

LO 2
2.1 Implications of integration to the hospitality industry
There are main two types of integration: vertical and horizontal. Vertical integration is
the process of buying another company or merge with other firm. In the case of France’s
AccorHotels, it has acquired Toronto based parent company (Xiang and et.al, 2015). Vertical
integration impacts positive on business unit and has helped in raising profit of the organization.
Vertical integration supports in minimizing operational cost and control over distribution chain
as well.
Horizontal integration is another type of process in which companies expand their
business by merging with the company that is having same distribution chain. As in the case of
Marriot international hotel has takeover Starwood hotel & resort. This takeover was profitable
for the Starwood hotel & resort because this has supported in maximizing its profit and
increasing its number of customers as well (Kasiri and et.al, 2017). Horizontal integration is
complementary for the companies because it gives additional benefits to the business and
supports these firms in expanding their operations across the world. It also aid in raising brand
image of the entity to great extent.
Implication of integration:
There are various implications of integration such as importance of branding and pricing
policies, association with large organization etc. In order to that, Marriott takeover Starwood, so
that their branding and pricing policies are increasing, profits enhancing of both hotel business. If
Marriott is associated with Intercontinental hotel, so that it is impacted on brand and pricing on
both the businesses. This helps in increasing profits and value of product as well as services in
front of consumers. This aids in expanding of individual business of hospitality sector.
2.2 How integration has affected a hospitality business
There is a huge impact on hospitality business with the integration of travel and tourism
sector as both these industries helped each other in increasing their business in the market. It also
helped in branding each other. For example, if a travel company ties up with a hospitality
industry than it will help them in booking rooms of their hotel from their customers if they
choose to travel with them which can be beneficiary for both of them (Interrelationship Between
Hospitality And Travel Organisations Tourism, 2015). There is a huge impact of this integration
on hospitality industries, such as,

 It will help them in increasing the economies of scale and their market share which will
eventually increase their business in the market and can gain a good revenue as well.
 It will also increase standardisation of both the industries. It gives them control over
providers at different or the same stages of the distribution chain, with the aim of
increasing market share, reducing operating costs, improving quality and maximising
profitability (Tussyadiah and Pesonen, 2016).
 It will help them to enhance their quality of work. This will increase their productivity as
well which can be very useful for them in expanding their business as well.
 By integration, it is reduced independent business in the hospitality industry. This also
decrease profits and branding image to individual hospitality organization.
 But some time, it is positive impact of business in terms of increasing market share in the
hospitality industry. This also enhancing pricing and branding if business.
 Through integration, it is increased globalisation of the hospitality industry. It is negative
impact on overall sector of hospitality.
CONCLUSION
From the above report it can be concluded that hospitality and travel and tourism business
works effectively together. Both are interrelated with each other as they helped each other in
increasing their business. It also discussed about the different types of implications, for example,
vertical and horizontal. It also discussed about the impact of this integration on hospitality
business.

REFERENCES
Books and Journals
Cook, R. A., Hsu, C. H. and Marqua, J. J., 2014. Tourism: the business of hospitality and travel.
Boston, MA: Pearson.
Tussyadiah, I. P. and Pesonen, J., 2016. Impacts of peer-to-peer accommodation use on travel
patterns. Journal of Travel Research. 55(8). pp.1022-1040.
Xiang, Z. and et.al., 2015. Adapting to the internet: trends in travelers’ use of the web for trip
planning. Journal of Travel Research. 54(4). pp.511-527.
Kasiri, L.A. and et.al., 2017. Integration of standardization and customization: Impact on service
quality, customer satisfaction, and loyalty. Journal of Retailing and Consumer Services.
35. pp.91-97.
Online
Interrelationship Between Hospitality And Travel Organisations Tourism. 2015. [Online].
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