Hospitality Provision: Industry Integration and Project Proposal

This report examines the hospitality and travel industries, focusing on their inter-relationship and the implications of integration. It begins by defining hospitality and tourism, highlighting their interconnectedness, and providing examples of key service providers like accommodation and transportation. The report then delves into the concept of integration, differentiating between horizontal and vertical integration, and analyzing its impacts on the hospitality industry, including both positive and negative consequences. It discusses how integration can affect brand image, organizational structure, and globalization. Finally, the report presents a project proposal tailored to a specific target market, location, and operating model, justifying the rationale behind the chosen project. The report emphasizes the importance of careful analysis and planning when considering integration within the hospitality sector, as well as the need to prioritize customer satisfaction and adapt to global trends. This report provides valuable insights into the dynamic relationship between hospitality and tourism, offering a comprehensive overview of key concepts and practical considerations for business development in this sector.

HOSPITALITY PROVISION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Inter-relationship between hospitality and wider travel industry..........................................1
M1...............................................................................................................................................3
TASK 2............................................................................................................................................3
2.1 Implications of Integration to the Hospitality Industry.........................................................4
2.2 Impact of Integration on Hospitality Business......................................................................5
M2 ..............................................................................................................................................6
D1................................................................................................................................................6
TASK 3............................................................................................................................................6
3.1 Rationale for selected project justifying the judgement linked to target market..................6
3.2 Producing a project proposal as per the target market, location, operating model...............8
M3 ..............................................................................................................................................9
D2................................................................................................................................................9
D3................................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
It is observed that if the tourism sector is properly developed it can bring immense of
benefits to the countries economy. As per the past records it is seen that UK is one of the most
famous tourist destination and is earning good income from the tourism sector. According to this
a major commitment in the economy is done and continuous development with huge ascent in
the coming years is predicted (Ashworth and Page, 2011). As the travellers are in enormous
number so to deal with their every trip designs and to deal with every one of their needs a heaps
of travel organizations exists in the nation. "Trailfinders" is among those travel organizations and
is one of the most effective or greatest autonomously claimed travel organization. It has more
than thirty travel workplaces available in UK and Ireland and with central station in London.
This organization was developed around forty six years back and has won real honours in this
business as a high-grade visit administrators by The Sunday Times and most trustworthy
travelling mark at The Guardian and Observer Travel Awards. The administrations of the
organization give booking of accommodations, convince, visits, travels and like facilities. The
referred organisation additionally has a publication and a site which gives all the important data
to the travellers or individuals who needs to visit certain spots. They keep an effected wok force
or representatives who monitor the profile and requests of their customers and give efforts
towards giving them first class administrations supported with good quality. Since the
organisation full fills all the required demands of its clients it is the first choice of tourists.
TASK 1
1.1 Inter-relationship between hospitality and wider travel industry
In order to understand the relationship between hospitality and tourism sector it is first
important to know them separately (Clift and Page, 2015). Hospitality can not be refereed to a
particular service as it is a combination of several activities which are performed under it. It is a
wide concept that includes all those practices which are conducted in order to welcome and look
after the general requirements of a tourists while his travelling. In this two way communication
take place in order to develop relationship with the client so that all his demands can be full
filled.
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Illustration 1: Scope of hospitality and tourism industry
Source : Institute of Hotel Management & Culinary Arts, 2014
In order to carry out the various operations of tourism industry it is required that they
have connection with the service providers like of accommodation, travelling etc. so that full
package can be given to the guest (Frey and George, 2010). This shows that hospitality industry
is a sub part of tourism industry. The prime services which are offered by them to the travelling
sector are
 Accommodation – It includes services like of food beverages stay and like which is
given to the tourists which are not at their own place and are far from their home for any
reason. For instance hotels of Taj in different cities
 Transportation – To visit different places convince is required which is provided by the
hospitality section (Gretzel and et. Al 2015). For instance kingfisher airlines.
 Service provider – During the visit of guest a number of services are demanded by the
customers which has to be provided to them so that their visit is made comfortable and
they get the required level of satisfaction.
 Client satisfactory level – The refereed organisation ensures that it concentrates on
giving the best services to its customers which is important to encourage more tourism in
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the country (Guttentag, 2015). There are different services like guiding etc. which helps
in giving better welcoming to all those who are visiting a articular country.
Given below is the figure which shows that how both the sectors are inter connected and
absence of any of the one will led to the failure of another. For example if there are no services
related to the accommodation of the guest than I will discourage the culture of travelling. Guide
facility is also provided to all those who wish to gain knowledge of new places. UK has got
effective department of hospitality which resulted into growth in its total tourism in the last few
years. "Trailfinders" are doing a good job in the same field and apart from profit maximisation
it also ensure that it can develop personal connection with its clients and develop a good brand
name. After analysing the ability of various hospitality service providers it designs its packages
for the customer and see that effective utilisation of available resources are done (Hall, 2010).
Given below is the figure which further explains the connection between hospitality and tourism
industry. It is a fact that hospitality industry provides base to the tourism industry. It assist
travellers in completing their trip with maximum comforts (Hopeniene, Railiene and
Kazlauskiene, 2015). Various services are given to them which contributes in completing the
whole package which is effective both by standards and cost.
Illustration 2: Interrelation between hospitality and tourism sector
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TASK 2
2.1 Implications of Integration to the Hospitality Industry
Integration is the process through which addition of more services is done in order to
develop the sector as whole. Results of integration are the outcomes that take place once the
activities of hospitality industry are combined with that of tourism. There are two types of
integration i.e. horizontal or vertical. In horizontal integration, company joins and combines with
the business which is equal in size and market share for eg. “GO” airline which is now taken by
easy jet. Whereas, in vertical integration, it makes tie ups with small companies to expand its
business (Hovhannisyan and Keller, 2015). For example: tourism industry make tie ups with
different hotel brands which helps in earning margins to both. Discounts are given to the
passengers if they book those hotels through them with the packages as done by easy jet.
Implications of integration are faced by only those firms which are handling many small
businesses but is unable to control it all the time. So their advantages are limited only to the
decentralizations. In the same process the authorities of management fails to maintain their basic
aims and objectives as it becomes difficult for them to control the thinking process of their
branch managers (Mok, Sparks and Kadampully, 2013). Sometimes, this variation in their
thinking may raise the chances of conflicts between them. This would create problems for the
whole department of organisation as it can face the crisis of control over every department.
Other consequences of integration are that it affects the brand, as after merging new
brand is generated which is not linked with the previous one. If any company after merging with
new firm fails to serve its customer's, than whole brand image will get affected no matter what
was its previous image regarding its product and services For example the case of Easy Jet and
Ryan air, which are popular for giving affordable flights to European countries (Murphy, 2013).
After a couple of time they decide to merge with each other as a result one company was unable
to serve its customer's well which decline its image, this also ruins the image of other company
too as they both are now a single unit. So, integration should be done after proper research and
analysis and evaluation of the critical fact which can affect the relationship of both the
companies in future. But surviving without integration is also not possible as it already proved
that big, giant and strong companies can only survive by acquiring the small units in the same
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field. This fair forces companies to tie up with other companies to get help in surviving for a
long period of time (Pulina, Detotto and Paba, 2010).
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Therefore, integration can be effective and efficient if it uses and done properly, because
any planned merger gives positive impact to hospitality industry. Every hospitality sector aims to
provide service, safety and care to their visitors and customers. Their basic key for success is
kindness and politeness with the customers. So, after merging both industry should be take care
of their services by not affecting it, as it can harm and ruin the company’s reputation and image.
For example the merger that took place between Sterling India resort and Thomas cook India
Proper organizational structure according to merging is a good practice as set of rules and
regulations can be made which can give guidelines to the branch managers about practices and
decisions they have to take for effective functioning of business. Organisational plan supports a
firm for planned merger with other companies (Scott, Peeters and Gössling, 2010).
Globalisation – With the advancement of technology trading is made possible across
boundaries. With the help of globalisation hospitality industry can now provide services to
customers who are sitting at far of places by providing them with what they require and where
they want to use the service. For instance now by sitting at homes customers can book their
hotels in country where they wish to travel in future.
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2.2 Impact of Integration on a Hospitality Business
Integration means merging two firms together or it is a synonyms of merger and
combinations. It has both positive and negative effects that depend on the combination results.
For example: if the other company is merging with hospitality business fails to fulfil their roles
then customer will not get timely services (Sigala, Christou and Gretzel, 2012). Hospitality
industry is a broad term where it covers lodging, event management, exhibitions, transportation,
cruise sectors and many more. It is under tourism industry which aims to give comfort services
to tourists and visitors. It has positive effects also like at the time of integration, not only
company merges but their process, capital and profit also get merged. Their success after
merging depends on their capability and strengths. For example: if two companies are going to
merge together like in case of Destination Hotels and Commune Hotels & Resorts in which one
is enriched with the latest technology and another has abundant funds and capital than their
combination will create pressure on their competitors. Also, this merging will be perfect
combination because they are dependent on each other. Overall, before making a combination, a
establishment should check that weakness of one company should be the strength of other
organisation, as than only they can work together effectively. Merger makes the existing hotel
bigger as the total available resources get increased (Smith and Puczkó, 2014).
Some of the examples of perfect combination in hospitality industry are Starwood Hotels
& Resorts Worldwide Inc. bought by Hyatt Hotels Corp., Blackstone Group LP took Hilton
private, American Alcohol industry merged with Gray Robinson, etc. This merger proves to be
successful because one company fulfils what the other company lacks. This is the reason; before
any merge, that it should be properly analysed as consequences and win loose chances as
explained in John Nash's game theory (Stephenson, 2014). Sometimes, merging of two different
companies give competitive advantage over their competitors as they don't have any weak points.
Their is more probability of monopoly, In case if a capital intensive company is merged with
latest technology intensive companies. They can control and manipulate the market, customer's
are also left with limited choices as theirs no other alternatives left with them. Monopoly is the
stage where no other player is present in the market and also there is nil competition. Integration
can be done either in same industry or in different one. Like food industry can integrate with
transport industry for betterment of its services during deliveries. Sources for same are as
follows:
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 Economies of scale – It is a concept through which the total capacity of the organisation
is increased as resources of two place are combined together which further decrease the
total cost of production too.
 Improved quality – When two different units join hands together then there are higher
chances of improvement in the quality of final output. It is due to the fact that more
skilled labour can be received through mergers.
 Market share – When distinct units does business in the same market their total potential
costumers increases which further raise the number of customers for the organisation as
whole.
On the other hand owner of a hotel facing loses can join hands with other one who is
successful in improving its earning. Successful owner can also join hand with loosing partner to
increase the size of its business or reach to the customer's because the loosing owner lack
something which the developed hotel has (Teng, 2011). Their are chances that after integration
some conflicts may rises related to promises or discussion during merging, so this situation can
be solve through mutually agreed agreement or contract by signing a Memorandum of
Understanding also called MoU to avoid any conflict in future. Merger has become necessity for
every business for rapid growth in short duration. But proper investigations and research of facts
and than analyses of these facts critically is very useful for making successful combinations.
There are various tools that can be utilised in order to record the effect of integrated activities in
the hospitality sector. Among this conducting a comparative study among the financial data of
various accounting years can help much. Apart from these personal interaction with the service
user can also help in gathering the required information to the subject matter (Vanhove, 2011).
When distinct organisations join hands together and continue to give common service
than it is termed as the horizontal integration. Under this similar variety of products are being
offered in the market. Contradict to this in the vertical integration organisations develop in
distinct locations and the take over of similar kind of organisation is done.
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TASK 3
3.1 Rationale for selected project justifying the judgement linked to target market
This is characterized as a legitimization for any organisation conveying any activity. It
ought to be created through proper designing and precision. Given below is the detail of how
rationale is developed in the discussed sector:
Thought:- The referred organisation wish to open a shoreline side resort with a brew
counter in it. As in the hot season individuals get a kick out of the chance to visit the shorelines
for the sunbath so there is a colossal request of the lager by travellers. There is additionally an
intense rivalry in this due to the availability of number of resort close to the shoreline. To stand
interesting from the contenders Trailfinders will concentrate on various fragment of the general
population like the white collar class and high society (Xu, 2010). Menu designing is done after
analysing the demand and variety of customers and if found that more of the consumers belongs
to middle class than rates of brew are lessened from the value imprinting on the container. This
arrangement will likewise be executed at different shorelines resorts which they will open. For
this an arrangement and research is required likewise we can state that a statistical surveying
technique should be received (Vanhove, N., 2011).
Statistical surveying:- This is done to discover the results of the business or thought and
is the primary procedure before opening or turning out with any business. Certain techniques are
received to complete research like getting ready the survey and appropriating it to the general
population who are occupied with shoreline life and furthermore arranging personal contact with
them to know their perspectives through surveying. Through this request of the item can be
assessed and their desires can be identified (Zeng and Gerritsen, 2014).
Target Market:- As discussed before the objective of enterprise is to pull in visitor and
offer them the lager with a lower cost and giving each sort of brew. So the focussed guest will be
of every age be it youth, rich or of upper class. After setting the targets it would be easy to attract
that particular segment.
Area of the business:- Beaches can result into the best option and shorelines close to the
city will be favoured for this business on the grounds that the traveller can without much of a
stretch reach there.
Size of the business:- Beer banish would be separate from the lodging with the goal that
individuals going to the shoreline could without much of a stretch approach the bar. So a major
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open zone with the sea view can be built and few private rooms can be constructed at the same
place.
Permit:- For maintaining any concern the enrolment and legal permission is required and
a different permit for the lager bar is most important in light of the fact that it is something which
isn't sold to the children and is a type of product which creates concern about the soundness of
the general population (Travel and Tourism Management, 2017).
Speculation:- A major venture is required to open a business as much investment is
required to buy the assets. This can be orchestrated through the credits and through the individual
resources which are available. There will be equivalent sum which will be taken out from both
the resources (Mok, Sparks, and Kadampully, 2013).
Items and Services:- Bar will have brew's of various brands from a less evaluated lager
to a costly one. Barkeeps and server will be needed in order to serve the lager and the tidbits
thing to the travellers. Any individual who wish to have a private space to drink will be given a
different lodge.
3.2 Producing a project proposal as per the target market, location, operating model
In order to come with the best plan it is important that immense attention is given to the
interior and the appearance of the bar along with the effective services. For this it is required that
proper time is given to make the final plan of the project. This will help in attracting more
customers towards it and only if the new place is better than the others it can earn higher
revenues. Along with the reduced price it should be ensured that quality of services is maintained
as it is the basic demand of the customers. To serves the best standards of product to all the
sections of society it is important that all type of product variety is maintained which is capable
of making it different from all the another available options.
To maintain higher returns it is important that close monitoring is maintained so that
errors can be identified at the same time and wastage can be minimised. It is important the
recruitment process of the working staff is carried out effectively so that they can do best
utilisation of the resources which are made available to them. It is important that the right person
is placed at the correct designation as in the hospitality sector communication between customers
and service providers is maximum. Therefore it is necessary that who so ever is concerned with
the duty of serving the customer is capable of giving effective service to the clients and can
resolve the issues if any faced by the customers. Proper training needs to be given to the staff
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members regarding the process of serving and welcoming the guest as it has great impact on the
customer visiting the place. Apart from the welcoming and serving facilities, staff members are
also required to maintain safety at the bar. Since the business is dealing in product which may
lead to disturbance or violence at the business place it is important that required amount of
security members are also appointed so that in any case an issue arises it is resolved at the same
time. Deciding on the final menu has to be done very careful as customers are very much price
sensitive.
A slight difference in the cost of product can lead to shift in demand. It is better if before
designing the final rate card proper research of the prices of near by restaurants is done so that
accordingly own price are constructed. In order to avoid complexity it is better to have less
department in the restaurant as more sections lead to more dependency and hence brings delay in
the output. Therefore it is better to follow a simple structure where open communication can take
place easily. When there is less flow of command work is carried out in more effective manner
and with minimum confusion. Accountability, should be well established so that action against
the person at fault can be taken on the same time (Travel And Tourism, 2015). In order to
develop a proper rationale for opening a new chain of restaurant is is important that all the
quality factors are included at the initial stages. All the relevant aspects needs to be covered so
that effective results are achieved.
To reach at final plan it is important that all the important factors which can effect the
results of the new bar are considered. Hospitality business is something which is a combination
of various activities and need to be performed with great responsibility. Nearby competitors
should be well analysed so that accordingly changes can be made in the own business. Activities
need to be managed by the person at authority and his performance can be evaluated by
establishing the culture of accountability at the work place. As much of time and funds are
invested when a new business is set up it is necessary to be very careful while taking all the
decisions related to it. It should be given care that allocation of funds human resource and time is
done in a manner that it gives best result to the owners. The organisation structure of the new bar
restaurant will be simple as it is a start up and it is not require to appoint much of the employees.
Given below is an organisation structure for the same.
Marketing strategy for the same will be:
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 Pricing – The price f products will be kept low so that more customers are attracted at the
initial stages. Once the clients are regular small changes can be made in the value of
offerings.
 Promotion – In the given case mouth publicity and giving discount coupons can be
adopted as a method to promote the brand name in the starting phase of business.
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Illustration 3: Organisation structure

CONCLUSION
From the above given report this has been analysed that hospitality and tourism industry
is incomplete without one another. Activities of both these sectors are dependent on one another
and in order to earn revenue it is important that both help each other in reaching their goals and
objectives. Services provided by the hospitality industry helps tourists in having a great time
during their visit at distinct locations and also assist them in discovering new facts about the
places which they are travelling for the first time. There is a direct connection between quality of
services given and number of visitors as destination which is known for its quality services
experiences more guest and earn higher revenues. In the above text rational is also discussed for
a new opening of a hotel which shows what all are the important factors that need to be considers
before starting a new business in hospitality sector. Finally the given study concluded with the
construction of structure which has to be consider by Trail finders when they are opening a fresh
recreation place near the beach side.
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