Analysis of Hospitality Provision and Integration in Travel & Tourism

This report delves into the critical role of hospitality within the travel and tourism sector, with a specific focus on the Hilton Hotel and Resorts. It examines the interrelationships between hospitality and the broader tourism business, highlighting the significance of hotels in providing essential services like accommodation, dining, and entertainment. The report then analyzes the implications of integration within the hospitality industry, exploring both horizontal and vertical integration strategies, their impacts on market share, branding, and pricing, and the resulting effects on businesses like Hilton. Finally, the report outlines plans for hospitality business development, including human resource allocation within a theme restaurant setting, to increase hospitality-based projects and overall business success.

HOSPITALITY PROVISION IN TRAVEL
& TOURISM SECTOR

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1) Role of hospitality in travel and tourism and interrelationships between hospitality and
wider tourism business.................................................................................................................3
TASK 2............................................................................................................................................5
2.1) Implication of integration to the hospitality industry...........................................................5
2.2) Affect of integration on the hospitality business..................................................................7
TASK 3............................................................................................................................................9
3.1) Development of rationale for theme restaurant....................................................................9
3.2) Plan for hospitality business in relation to human resource allocation..............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality and tourism has some common attributes which are associated with similar
activities. Both the term hospitality and tourism are co-related and grouped together for a single
industry (Raj and Griffin, 2015). The hospitality sector is one of the most crucial service
providers for international travel and tourism. The present report is based on Hilton Hotel and
resorts which is an International chain in providing hotels and resorts. There are over 530 Hilton
branded hotels of the organization which are across the world (About us, 2016). They are
operating their business in more than 78 countries across six continents. The report explains the
role of hospitality business in travel and tourism sector. Apart from this, the report also analyses
the implication of integration on hospitality industry. Furthermore, a plan has been developed
which help in increasing the hospitality based projects.
TASK 1
1.1) Role of hospitality in travel and tourism and interrelationships between hospitality and wider
tourism business
Role of hospitality in travel and tourism: People in today's times prefer to spend on travel and
want to experience facilities of hospitality (Hsu, 2015). Hotels are one of the important part of
concern industry, they provide quality food, living arrangements, entertainment etc. to guests.
Traveler always prefers to select such tour package which include traveling with
accommodation. Development of hotels will assist in increasing tourism, hotels promote travel
business to great extend as people can easily find catering and other services in hotel and
restaurants. Technology is another tool which promotes travel and tourism. With the use of
internet people can plan the tour and can get all details of tour packages (Backer and King,
2015). Some hotels and restaurants are well known for their services, they provide safety to
consumers. Whenever person plan to go on holiday, the first question comes in mind about living
and food arrangement. These hotels accomplish their needs and apart from accommodation
facilities, they provide them free gym and WIFI facilities. By this way traveler feel satisfy and
give positive feedback about the travel (Altinay, Paraskevas and Jang, 2015).
Hilton hotel is offering luxury rooms to visitors. In addition to this for attracting
consumers towards the hotel they are offering seasonal discounts to traveler. By this way guests

get quality services at affordable rates. Hospitality businesses are concentrating on providing
medical services to visitors. This is additional service which increases interest of public towards
the travel (Park, Cole and Zhang, 2015)..
Interrelationships between hospitality and tourism business: Tourism and hospitality both are
interrelated (Park, 2015). Visitors always prefer to choose such packages which include facilities
of food, accommodation etc. Whenever they plan to go on holiday or to an attractive place, they
think to stay in comfortable place. As much as people will travel it will increase profitability of
hotels, same as if hotel provide them satisfactory services then people will like to come to the
place again which will enhance business of tourism. Hotel are considered as essential service
provider, they have to make proper arrangements for a visitor (Schuckert, Liu and Law, 2015).
Business travel: Persons those who are traveling with commercial purpose, they need some
additional services so that they can accomplish their work perfectly. Such business persons want
WIFI facilities so that they can operate their mails. Visitors prefer to select such hotels which
provide them clean areas so that professional can conduct business meetings there. These extra
services make them satisfy because they can be able to complete their project effectively with the
help of such extra services (Law and et.al., 2015).
Conferences and exhibitions: Such presentations attract more consumers. For instance Malta
organized the largest conference for 5000 delegates. Each individual was invited to 4th star hotel
for this conference. It was the biggest function which supported tourism. Company spend more
than 8 million Euros for making arrangements of such conference. Exhibitions aid in increasing
tourism. People come to watch such unique and antique things. Most of the time such exhibitions
organized in any hotel or restaurant so it gives encouragement to tourism. For those important
conferences and exhibitions, people travel from one city to another. This increases tourism
business to the great extend (Xiang, Magnini and Fesenmaier, 2015).
Visitors attraction: Theme parks, special locations, museums etc. are attractive points for
traveler. People generally make travel plan because of visiting such attractive places. These
places increase tourism business across world. Whenever, individual plans to visit any point then
firstly person look for hotel booking. They want to stay in comfortable place so that such holiday
become memorable for them. Place which is center of attraction, people like to visit such points

and choose hotel which are nearby it. So it will not only increase sales of the hotel but also it will
enhance overall business of tourism (Slocum, Kline and Holden, 2015).
Packages holidays: In modern era most of the tour operators provide tour packages to
customers. These support in increasing visitor's interest in traveling. Some packages are costly
whereas some are cheaper. But some companies offer quality arrangements at lower cost. So that
all type of people can go on trip and can enjoy the travel at affordable rates.
TASK 2
2.1) Integration's implication to the hospitality industry
Integration assist in increasing market share of the organizations and also it helps in
enhancing brand name of entities globally (Nunkoo, 2015). Integration refers to bring all small
components into single system so that it can give optimistic output to corporations. Horizontal integration: It is the process through which company can expand its business
and can increase its consumer base. This will enhance level of production of Hilton hotel.
Merger with another business entity, support in enhancing network through which
company can increase its market worth and can gain competitive advantage in the
environment (Vertical and strategical integration, 2016). It assists Hilton to make
monopoly market conditions by this way enterprise can get huge profits in existing
market. For instance, Hilton purchased a small resort at Walt Disney for 92,202,465.
Through this hotel merge with the organization which has same distribution chain. Many
airline are here those who are working for such chains, By this way more consumers will
be attracted towards the hotel. Which will support in gaining competitive advantage and
it will enhance brand name of the hotel. Horizontal integration aids in improving services
of hospitality industry through this hotel will be able to provide extra ordinary services to
clients at affordable rates (McKercher and Tung, 2015). Merger of Marriott and Starwood
Hotels and resorts gave benefit to both entities and it helped them to generate monopoly
in the market. They became able to serve better to clients, which has given them benefit
of large sales. Both have unique quality product and services, this merger improves their
quality with the combination of two products thus, more public attracts towards the
organization. Horizontal integration gives success to both business units and they can
enhance their market share to great extend (Rodriguez Oromendía and et.al., 2015).

 Vertical integration: It is a basic arrangement through which the supply chain of one
enterprise is owned by another company. In this process big organization acquire
distribution channel of small firm by this way operational cost of entity and distribution
expenses get reduced. This will decrease expenditure of company and it will become able
to enhance its profitability. It will be great benefit for Hilton hotel because by this hotel
will be able to control over its suppliers which are related to various services such as
transportation and accommodation services etc. In addition, it will reduce completion
from the market (Legohérel and et.al., 2015). Reduction in cost will assist in increasing
customer's inflow in the hotel. Branding and pricing policies: Brand name creates positive image in the mind of
visitors. It creates unique perception regarding services which are provided by the
company. Success of any business unit is totally depends upon its market value, if
branding is good then it will attract more consumers but if it is poor then sales of the
entity will get decreased. Mergers and integration support in enhancing brand name of the
hotel (Lu and Stepchenkova, 2015). It will affect pricing policy as well. There are
chances that after merger organization can increase its prices of the products because they
want to provide quality services to clients.
Integration's implication on Hilton HOTEL: Increased globalization of industry: It gives support to hotel in expanding its operations
globally. By this way corporation will be able to cover maximum areas which can
increase customer database of Hilton hotel. It will reduce trade barriers because hotel has
many branches across the world. Company can develop its own websites and can upload
details regarding offers and packages. Social media sites can attract more visitors towards
the hotel (Martin, Rosenbaum and Ham, 2015). Through this it will be able to connect
with mass audience thus, profitability will be increased.
 Pricing policies: Cost of the product will be affected by this integration. Merger and
acquisitions support business unit in increasing quality of services. Price of product
impact a lot in overall business of the company. So Hilton should use horizontal
integration because this will assist in controlling market competition. Other than this

vertical integration will help hotel in controlling supply chain so for that company has to
use this kind of integration (Mohammed, Guillet and Law, 2015).
2.2) Affect of integration on the hospitality business
Integration will assist in increasing profitability of the Hilton Hotel. With the help of this
organization will be able to expand its business to the great extend. It will support innovation and
company will be able to provide advanced beneficial services to clients. This will increase sales
of the enterprise. By this way Hilton hotel will be able to gain, more competitive advantage and
thus market share will be increased of the entity (Desai and Eric, 2015). Integration will support
Hilton hotel in enhancing brand image of the hotel by this way more public will prefer to stay in
the hotel. So it will increase profitability of the organization. In addition to this integration will
aid in improving services of the hotel so that managers of hotel will be able to satisfy their
consumers well. By this way company will gain profit. Other than this, they can also control sub
sectors through which they can attain set goals. Economies of scale: With the help of this, Hilton will be able to reduce its operational
cost so that rooms and services will be available for consumers at lower rates. Which will
attract more visitors towards the organization. This integration will be beneficial as to
increase marker share of the company (Buhalis and Foerste, 2015). Economics of scale
help enterprise in gaining monopoly market in tourism industry. For instance if more
revenues is generated by company then it will be able to offer quality services to
consumers which will enhance its sales. It is related with the advantage of cost because of
large size of operations. By this way visitors can get attractive and satisfactory services at
affordable rates. Standardization: Through integration, Hilton will be able to maintain standards of the
industry and can provide attractive unique services to clients. By this way people will fell
satisfy this will give growth to the business unit. It will assist in increasing brand value of
the company. Through this traveler will choose this hotel for stay and other services
(Brown, Bosselman and Thomas, 2016). Fewer major organizations: Mergers and acquisitions will support Hilton hotel in
increasing brand value of the organization. Hotel will be able to expand its business to the
great extend. By this way profit of the company will get increased. It will also support in

reducing competition (Airey and et.al., 2015). Hilton will be the major hotel in the
hospitality industry if it merges two or more small hotels with it. Control of sub sectors: Increasing tourism will support organization in controlling of sub
sectors. By this way Hilton hotel shall be able to formulate impressive and concentrated
strategies which can enhance its business to great extend. Through this market share of
the company will get enhanced (Park, 2015). Improved quality: Integration will assist in improving quality of the product. Through
mergers company will be able to serve quality food and services to clients, which will
attract more consumers in the hotel. Thus, sales of the enterprise will get increased.
Increasing tourism support entity in adopting advanced technologies and hotel will be
able to satisfy its consumers well (Kim, Vogt and Knutson, 2015). Hotel can concentrate
on providing health and safety to visitors which will enhance loyalty of visitors towards
the business unit. Reduction of independent business: Mergers and acquisition assist in decreasing number
of small business in hospitality industry. Through this Hilton will be able to lead to sector
and can increase its profits and revenues. Reduction of independent business aid Hilton
hotel in increasing sales of the company by this way brand name of the entity will get
enhanced (Couture and et.al., 2015). Decrease the flexibility: Integration decreases the flexibility in the organization. As there
are may small firms so it becomes difficult to take any decision suddenly. For any small
change company needs to look upon various factors and have to take permission from the
authorities. Because small modification may influence overall working of the industry
(Maggon and Chaudhry, 2015). Even sudden changes can not be accepted by employees
as well and can harm working environment of the organization. So before making any
decision Hilton has to discuss with workers and have to take permission.
 Huge of amount of money needed: Mergers and acquisitions need huge amount of
investments. For acquiring any small business, company has to invest in such firm.
Which can give profit but on other hand there are chances of failure, enterprise can suffer
from loss if this integration is not become successful. For completing legal procedures of
merger both organizations need huge amount of money and both have to follow the legal

guidelines of the related to integration (Aragon-Correa, Martin-Tapia and de la Torre-
Ruiz, 2015).
TASK 3
3.1) Development of rationale for theme restaurant
Stage 1: Development
The rationale selected for making growth of the hospitality business of Hilton hotel is
development of themes restaurant. As the concept of theme restaurant takes place of everything
else because it is the unique idea in itself. The main objective of development of theme
restaurant is make the customers feel something different (Raj and Griffin, 2015). Apart from
this, it will make them attracted towards the restaurant. As very less hotel are there who are
providing the attracting services like theme restaurant. The vision of the organization behind
development of the theme park is, they can become market leader through attracting new
customers towards the business. There is more chances of growth in the hostility by making
availability of the new products and services to the customers (Backer and King, 2015). The
concept is to availability of different types of cuisine dishes with an attractive manner by the
different types of Disney characters. This will attract the kids as well as the other people.
For developing the theme restaurant it is important to do market research so that the
organization will be able to find the interest of people towards the theme restaurant. Other than
this, the organization also will be able to get new ideas for the business (Hsu, 2015). The location
which is selected for the restaurant is Westfied Stratford city, because the place is surrounded by
the large hopping malls and pother things where people generally go. Apart from this, they can
also find that group of people which are more interested in coming to theme restaurants. The
main targeted market for the theme restaurant is families and youngsters. Targeting families also
include kids. As kids are more attracted towards the places which are unique in their nature and
looks more attractive. This ideas of opening theme restaurant is also relevant in the sense that
these people are more like to visit such kind of places (Slocum, Kline and Holden, 2015).
Youngsters are also like to visit those places which give some extra services to them rather than
making only the delicious food.

For development of the building the land was acquired in the satisfactory prices that is
worth £20,000. As the place which is selected for opening the restaurant is very crowdy and
people like to visit it more because of its attractive places (Xiang, Magnini and Fesenmaier,
2015). Other than this, different types of restaurants are also there but none of them has the
unique feature like theme restaurant. It will be a big scope for them to get more profit in the
market and also there is the scope of getting competitive advantage within the market place.
For development of theme restaurant huge money is required which can be arranged through
bank loan as it is easy to get bank loan rather than choosing investor's fund and own budget
(Law and et.al., 2015). As it is easy to get loan from the bank because Hilton hotel is already a
very well reputed organization in the country. Collecting money from the investors takes a long
time. Other than this, if more money is required for development and interior of the restaurant,
own fund of the organization will be taken in use as it doesn't cost any interest rate over that.
Stage 2: Design
Second stage for development of theme restaurants is related to design of the project. It
includes the ambiance, culture, interior and exterior of the restaurant. The ambiance of the hotel
is according to the Disney them, which make the people more attracted towards the restaurant.
The ambiance of Disney character will help to make the people more attracted (Schuckert, Liu
and Law, 2015). Apart from this, different Disney characters are show to the customer in the
form of waiters., so they will entertain the people who come to visit the restaurant. Special
charterers are come to entertain the kids like different for girls and boys. The owner should
provide the shade cone in the entire room so that customers feet comfortable with the
environment of the restaurant, which will make them more attracted towards the organization so
that they will gain profit from that (Park, Cole and Zhang, 2015).
The interior of the restaurant should be presenting the life of Disney characters. All the
walls and roofs are designed according to the theme of the restaurant. The wall of the room will
be decorated with the shade of cartoon characters and very light colors will be used such as pink,
yellow, cream, and white (Nunkoo, 2015). This colors are generally used in theme based
restaurants. This will help to attract the target market that is kids and youngsters because they
like to that type of colors more.

3.2) Plan for hospitality business in relation to human resource allocation
For developing the theme restaurant at Hilton Hotel, the most important things which
should be considered is the availability of human resources. Skilled and experienced people
always help the organization to grow in the market. Availability of human resource can better
provide the services to the customer in more efficient and effective manner (McKercher and
Tung, 2015). For managing the food related issues at the restaurant, they need to make focus on
staff which are the specialists of managing the food and beverages department. As experienced
people are required for this department. Staffing by functional area: For making more effective performance of the restaurant in
the market, it is essential to recruit the people according to the various functional areas.
Different areas such as HR, finance and production are there through which the
restaurant can make better arrangement for the people and also it will help the
organization to manage the things more effectively (Rodriguez Oromendía and et.al.,
2015). HR department includes the people which are responsible for management of the
restaurant. Finance department has the work of assessing the current and future need of
the finance, so that the they can easily assess the need of finance in future and current
business operations. The next department is related to production in which cooks,
waiters and other people are included which are involved in production process. Specialist qualifications: For various department different types of qualification are
needs through which they will be able to handle their role within the organization. The
candidate which are selected for the post of HR musty have the experience of at least 4
years with the particular role (Legohérel and et.al., 2015). This will make them able to
easily manage the business. Other than this, the people which are selected as the
financier must have the relevant knowledge in the sector of finance. People who are
having the qualification of CA will be preferable and it is also required to have
experience of more than 2 years (Lu and Stepchenkova, 2015). Further, the people in
production ares must have the knowledge of cooking and serving food. So they can
attract the customer by their services. Cultural diversity: As people of different culture are come to visit the restaurant so it
will be necessary to appoint the people of different cultures. The people which are

appointed as waiters and cook must have knowledge about different culture. Other than
this, they will be also able to speak different language so that they can understand the
problems and demands of customers (Martin, Rosenbaum and Ham, 2015). Recruitment policies and procedures: During the recruitment of the employees, Hilton
Hotel should take care about the major laws and legislation that are related to
employment polices. Major laws such as equal pay act and sex discrimination act. This
acts prevent any type of discrimination among the employee at the workplace
(Mohammed, Guillet and Law, 2015). Apart from this, it will also protect the rights of
the employees. Promotional mix: For making good promotion of the restaurant it is necessary to find
effective ways of through which Hilton Hotel can make better publicity. It contains
advertising, public relations and sales promotion of the restaurant. They can use media
outlets for advertising. They need to create viable adverting programs, this will help the
company to reach at large number of people. They can use television, radio, newspaper,
social media and internet ads to introduce people for opening of the theme restaurants
(Desai and Eric, 2015). Apart from this, they can also organize event for the grand
opening of the restaurant.
 Pricing strategies: Perpetration pricing refer to the strategy in which services and
products are offered at the low price for making the customers attract (Buhalis and
Foerste, 2015). As the theme restaurants is a unique and different ideas, it takes time to
make people attract. For this, lowering the prices is a great strategy. This will help Hilton
Hotel to gain more market share through which they can gain competitive advantage
within the market place. Apart from this, the organization can also change the pricing
strategy after some time when they get success in their business.
CONCLUSION
Through the aforementioned report, it can be concluded that, hospitable plays an
important role in the business of travel and tourism. There is a relationship between hospitality
and tourism, as people come for different travel purpose which help to increase the business of
tourism industry. Apart from this, integration help to expand the business in the market through
which chances of developing monopoly market get increased. It can also concluded that,