Comprehensive Report on Hospitality's Role in Travel & Tourism

This report comprehensively examines the interrelationships between the hospitality and travel & tourism industries. It begins by discussing the symbiotic relationship between the two sectors, emphasizing how hospitality services such as accommodation, food, and beverages are crucial components of the travel experience. The report then analyzes the implications of integration within the hospitality industry, exploring both vertical and horizontal integration strategies, and their impact on profitability, customer reach, and competitive dynamics. It also details how integration affects the hospitality sector, including aspects like customer choice and market dominance. Finally, the report presents a rationale for justifying decisions linked to the target market and outlines a business plan, considering operational requirements and market research. The report concludes by highlighting the significance of communication skills and customer satisfaction in maintaining a competitive edge within the hospitality and tourism sectors.

Hospitality Provision in
Travel & Tourism Sector

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Discussing the interrelationships among hospitality and travel and tourism businesses. 1
TASK 2............................................................................................................................................4
2.2 Implications of integration to the hospitality industry.....................................................4
2.2 Hospitality industry affected by integration.....................................................................5
TASK 3............................................................................................................................................6
3.1 A rationale for justifying decisions linked to target market.............................................6
3.2 A plan for hospitality business including the operational requirements of the business..7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Hospitality industry is a wide category that includes providing services to customers.It
includes food,beverages,accomodation,travel and tourism. It basically depends on availability of
leisure time within people. It is directly related to travel and tourism and plays a very important
role in tourism industry (Rajaobelina, 2017). Travel and tourism industry is the organisation
widely developed which gives people the freedom to travel to places of their own choice and
enjoy their leisure time. In this business industry, both the hospitality and tourism industries go
hand in hand. Hospitality plays a very important role in tourism sector. This report is about the
relationship within hospitality and tourism industry.Also it analyses the implications of
integration to hospitality industry and effects of integration.A plan for the business is also
included in the report.
TASK 1
1.1 Discussing the interrelationships among hospitality and travel and tourism businesses
Hospitality industry provides very important service to travel and tourism industry.
Customers play a vital role in both the industries as both of them depends on customers .Tourism
industry creates by giving these services to the customers like arrival, departure, booking hotels,
tranport, board, etc. They fully focus on these elements whether the accurate service is provided
to the customer or not to the worth of their money. Overall the customer must be satisfied in all
sense from food to accomodation, from arrival to departure.When a customer plans a vacation
through a package, customer expects the accomodation and travel industry provide that service
but according to the budget. In normal packages only 3 and 4 star hotels are included (Zlatković,
2016). No 5 star hotels are available for a normal budget package. So customer has to understand
these norms of the company. But there is a benefit all the things are done under one place. Thre
customer need not to go anywhere for other bookings. Thats the greatest benefit .
There are many ways in which hospitality is related to travel and tourism industry.
Package holidays
Hospitality plays a great role in holidays planning. Hotels that are included in the
package totally depends on the customer's budget. If the customer go for a normal package ,he
gets a 3 or 4 star hotel to stay in and if he opt for high budget package he gets a 5 star hotel.
Customers also get discount offers and special prices from the travel company's agents as
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provided by hotels to them. They have a tie-up with one or other companies so they are provided
best offers which in return they give to customers. The more customers the travel agents bring
the more profit they get from hotel's management. As in case of Mariott hotel, if a client wants to
book a room ,the client can ask the agent to book it for them. The agent will check the
availability of the room then only he will confirm the booking to customer.
Package also include accomodation,food ,beverages,breakfast,boarding,arrival – departure pick
up, etc. Travel agents keep a track of the customers staying in their hotel to check if they are
enjoying and having fun. They also askd for the customer's feedback to know whether they are
having any problem. All types of packages are included. The customer has the freedom to select
the one which solves the purpose of their visit. It can be professional , personal, leisure, etc.
Navigation
Hospitality has grown to such an extent that that it makes a very huge difference on travel
industry.The airlines totally depends on hotels for their successful business.If the hotels are
full(no room is vacant) ,it can make a great loss to airlines business. Like Thomas Cook tours
and travel agency,which regularly waits for the client to book a holiday from their agency but it
totally depends on hotel vacancy (Zlatković, 2016). If the hotel room is available,then only client
will confirm the holiday booking, so business of travel agency depends in hotels.
As people now first check the availability of rooms in hotel then only they go for avaiability of
tickets on their suitable time. Hospitality is also provided in flights. Low budget fights provide
meals,beverages,etc with additional costs and high budget airlines provide them for free.Many
luxury airlines also provide recliner seats that can be turned into bed when needed.
Business trips
Many people travel for business meetings or work so they need that ambience around in
hotels,flights.So the industry provide them both .They provide business class area in flights
which are a bit expensive than economy class but affordable for corporate people. The agents
provide the work ambience so that the customer feel comfortable working anywhere whether
flight or hotel. The travel agents finds them the hotels with all facilities like internet, wifi,
conference rooms, etc. Business class was basically developed for those who needs place to
work.
Conferences ,Exhibitions and Attractions
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These three terms contribute a lot in hospitality and travel and tourism industry. They are the
elements which happens twice or thrice during a year and that becomes the peak season for
hospitality and tourism industry (Becker, 2016). Many international conferences are organised
worldwide and many delegates from all over the world are invited yearly to visit and attend.
They are made to stay in 5 star hotel and enjoy their time.So it gives the hotels and tourism a
great business. Same with exhibitions, they are organised in various places nationally or
internationally, it gives great business to these industry. Exhibitors invite people to view their
products in exhibitions. Also many places have great visitor's attractions that make people visit
places and increase the productivity of hospitality and travel and tourism company.
Communication
To attract more customers ,the management officials in hospitality industry and travel
and tourism industry should have good communication skills.Communication skills and good
amount of knowledge is very helpful in attaining good customers. When an agent communicate
with customer,the agent keeps in mind to be polite and smartly responds to the customer's query
and to satisfy the customer fully. The customer checks whether the agent is good enough to
communicate ,have adequate knowledge about the subject,whether the agent is responding
correctly or not. The client can complain about any problem they face and the agent have to
solve them within time.
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TASK 2
2.2 Implications of integration to the hospitality industry
Intergration is stated as the procedure via which the enterprise increase their benefits
through development of products. This process is repeated again and again by the organisation to
gain more profits. This idea is basically preferred when the organisation wish to integrate their
economies of scale by reducing cost and production. With this plan the hospitality business can
extend its product line. The integration advantages of integration are: It brings accuracy in
knowledge and skills, profit is increased,competition gets less through merging with other
companies, an increase in process of sales. The level of integration is increasing in this sector as
where the destinations are becoming more popular ,large organisation are using their company to
support it.
For eg: Hotel Marriott provides one of the most expensive and stylish accommodations
throughout the globe(Kasemsap, 2016) This brand gives a level of royalty to the guests.The
ambiance is something to cheer about. In short, it ca be said that it is the perfect brand to choose.
There are two types of integration:
Vertical integration
It is stated as the one and only chain having more than one management which is
developing unusual and separate products offered in united way. This reduce the production cost
of the company and the profit increases.
Horizontal intergration
It is said as emerging of several different firms or companies into one management. It is
beneficial for the company as it expands the no. of customers and increases the prodyctivity of
the organisation. This can be done via smaller enterprises combining with larger to expand
within hospitality sector.
The organisation would prefer using horizontal rather than vertical as they would be
involving one type of product under control not many(Sharpley, 2018).Within this process of
integration the organisation combine one of the facilities with other similar industries for
enhancing their business.
Eg: If mariott merge with one of the travel companies say thomas cook ,their profits are
increased as their productivity is increased. Their customers are doubled or more.Also there are
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some bad effects of merging: Chances of having bad reputation if stepped back or not merging, it
may create problems for smaller organisations,loss of job for many employees,etc.
2.2 Hospitality industry affected by integration
Hospitality industries have been providing the best products. Through this concept,the
industry maintains relationship among various organisation. Also it provided competitive
advantage. Combining two or more companies will attract more customers.This is said to be the
best in the market as the company provides one of the best services which cannot be given by
other competitors. The number of choices get reduced for the customers.
The production costs also gets reduces when two companies integrate which further
increases the profit of the company.Integration can be helpful in maximising profit. It increases
diversity in business as when two companies integrate the customer coverage is increased and
this increase the margin for both the companies(Sari, Bulut and Pirnar, 2016). New services and
ideas are created that attract customers. By integrating,the companies can be more dominant on
other competitive companies.
Eg: the hospitality industries are taking over business like hotel chains,transport,restaurants, etc.
This is called vertical integration.Through this, the organisation wants to have control
over whole market. Integration is more effective for the success in hospitality sector. Such
integration which is operating business by merging with other businesses is called horizontal
integration which widely used.
Like mariott hotel chain merged with thomas cook tours and travels to increasr their
productivity and this will be more beneficial for them and great loss for other industries as they
both are big organisations and have great brand name so when they merge and create new
ideas ,more customer gets attracted as both are reputed companies. This also helps in promoting
the brand in other sectors of hospitality.
But there are many cons of intergration : If the company decided to separate after
merging ,it gives huge loss of reputation.Also it can make many employees loose their job as to
make the company efficient and better(Anderson, 2015). Moreover it creates problems for
smaller organisation. Also it increases rivals for the company so the organisation should be
active enough to track everyone around in the market.
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TASK 3
3.1 A rationale for justifying decisions linked to target market.
For developing rationale for this project the market need to be researched. By analysing
the market , the rationale can be made efficiently.
The plan starts with the idea.The idea of dveloping a business within the market.For eg:
Developing a hotel needs a restaurant.The idea contains the setup which includes all the
necessary services required. Its location is very important as it should attract large no. of
customers so it must be located at tourist spot (Bowie, Buttle, Brookes and Mariussen,
2016).Marriott hotel aims at attracting customers by providing low range plans for the middle
group. Their main focus is to capture all elements of the society.They offer services that range
from lower to luxury . Large number of customers will enhance the profit for the company.
Then comes the market research. This is compulsary part before developing a business.It
is also advisory to add the new ideas in the company which the client requests for. The demand
offered and their approximate price can be decided accordinglyby the company. This also helps
in finding the factors that can keep the clients happy and satisfied.
The target market selected would be for both male and female and possibly social class
families. As many people travel with their families having children so it is important to have
family related facilities and activites for people of any age for leisure. The middle class look for
the best services in lowest price possible(Smith and Puczkó, 2014).So the organisation must
focus on the needs of middle class people and set their features accordingly in order to increase
their business and become popular amongst all class people. If these offers and features will be
provided to people ,they will surely book with the organisation without a second thought so
focussing on customer's needs and demands is very necessary.
The next step should be to choose target location.The location where the company is to
be located. It is very important to be located on tourist spot places to be on customer's favourite
spot list. In UK, Football is best place for location and that will increase the profit surely.Proper
location is efficient for attracting customers(Leung, Xue, and Bai, 2015). The hotel can offer
various discounts like extra bedding & breakfast free. Different services like transport facilities
will be efficient to attract outer tourists. The local tourists can be attracted or reached via various
facilities like banquettes,conference halls, board meeting rooms, etc. There are several offers
available for the types of rooms that are selected by people. Now a days holiday resorts are
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getting more popular so creating that look in the hotel will be more beneficial for the
organisation. The inside and outside view of the resort. If the location of the resort is beach side ,
its best. The structure of the hotel inside, various attractions offered inside the resort.The market
basically needs to focus on the cultural diversity .It refers to the serving people with different
culture. The hotel consist of guests from various cultures so the hotels needs to hire a trained
staff to satisfy the needs of guests from different cultures. Eg:the international visitors like to be
welcomed differently from the staff so the hotel must have arrangements for these types of
gestures. Guests visit to to relax and feel the ambiance so this is the duty of the organisation to
make them feel comfortable and arrange different cultural events for the guests.
3.2 A plan for hospitality business including the operational requirements of the business
For developing a plan ,different stages including development,design and operations are
implemented.
Stage 1:Development
Concept: The concept is the idea behind expansion of the business. The main aim is to focus on
the middle class people who cannot afford luxurious stay. The objective of organisation is to
keep itself in the supreme position within the combative market.The vision is to provide better
and satisfactory services to the customer.
Market research: The research is an important factor in the development of the project. Market
research can give necessary factors required for the project development. The research includes
location, the attractions included in location, etc.(Gibson, 2017). Market research basically
observes the location through which income level can be estimated.
Target market: The target market is the market or group of people which is targeted for the
development.Mostly the customers that are targeted are from the age group 25-65 years as they
are the one who are interested to spend money on leisure tourism. Mostly the middle class people
are targeted .As they can't afford luxurious stay so middle class budgets and offers are provided.
Location, Scale and funding: The location matters a lot as the view where the hotel is located is
the primary concern of the customer.If the hotel is in the peak location ,the company's revenue is
increased. Also there is a large scale of middle class people and large no. of international tourist
who wants budget stay so the scale of middle class is very high so the budget should be
accordingly decided(Zlatković, 2016).The funds should be from many sources. Some by
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ownerand others can be arranged by loans or investments. The funding can be done through
approaching shareholders.
Products,Services and Licensing:These are the facilities provided by the hotels to the guests
such as spa, sports, games,parlours,bars, etc. They are complimentary in some hotels and
chargeable in some. They are used by the customers according to their needs and budget. The
hotel is making strategies to improve the features and provide different services in the
organisation. There is more improvement in the standardisation of the services provided for
better customer experience.
Licensing is most important to carry out all things in legal way. Licensing over standard of the
services being provided are considered. License is very necessary in order to run the business in
a balancing way. If the proper license is not there of the organisation, it is considered illegal and
can be sealed by government anytime.
Stage 2:Design
Ambiance and Culture: This term indicates the inner environment of the hotel.The visitors gets
attracted by the inner environment.The ambiance must be soothing and cozy for the guests.The
good ambiance can be created by innovative and creative measures. It should be eco-
friendly.Special training are given to employees for guest's comfort.
Brand:It is the most important for attracting new customers and keeping current ones(Becker,
2016). The hotel must develop some of the strategies to promote the organisation withing the
market.
This will attract the foreign travellers and visitors.
Interior: It includes the type of service provided by the management to the guests. It includes
the employees,staff of the hotel, their behaviour,proper arrangements in the restaurants,
decorated accommodation and other facilities.
Exterior:The exterior includes the outer area of the hotel or surrounding areas of the
hotel.Surrounding includes car parking area,garden ,pool ,playground for children .These all are
associated as exterior of the organisation.
Functional areas: Functional areas are the main head areas of all departments. It includes head
of housekeeping, storage rooms, facility of accomodation, management, security and safety,
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transport services, ,rooom services, etc. All these departments are manages by their head and the
management keep an update of all by communicating with heads.
Customer flows and link to target market:It is basically targetting the local and foreign tourist
by certain offers to enhance the profit margin .Target market can be linked with project
development and services can be changed according to the needs.
Customer with individual needs and sustainability:Customers with different needs are also
considered. The visitors with different purpose can be approached like educational groups,
student researchers,etc. So they are offered different services. Sustainibility is measured by the
ability of the business which is associated with the changes within the current trends and
according to the tourist's perspective.
Stage 3:Operations
Staffing by functional areas: Staffing depends on the performance of a specific area. It can be
Management team, Finance, Supervisors, Housekeeping staffs, Staffs in food and beverage,
Security staffs, Transport system,etc. The maximum focus is on kitchen and housekeeping as
they are required all 24 hours a day.
Specialist qualification: By employing specialists’ qualifications ,organisation can have benefits
by motivating higher performances. Various qualifications are required within the functional
areas such as for the manager post a person who has skills and talent shoul be appointed, for the
security the person with training shoul be appointed.
Staffing issues and cultural diversity:Wedding season requires more staff so back up staff is
needed to be hired for season(Rajaobelina, 2017). Also many international guests also visit so
there should be trained staff to handle diversity and to handle wide range of cultural things at
hotel.
Recruitment policies and procedures and Complaince with legislation:Many rules are made
while recruitment like anti-discrimination policy, equality, etc. While making organisational
rules, the government laws must be considered such as healthy,safety work environment,food
and hygeine policies, etc.
Promotional activities and pricing: These are the activities that involove promotion and
branding the name of the hotel among the visitors. Also mouth promotion can be done by
satisdfying customers with services in efficient way. Pricing should be in a systematic way by
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considering every aspect of getting more customers of all class-middle, high, luxury.Also it can
be done by analysing market and making people compare the prices and services with the other
hotels.
CONCLUSION
It can be concluded from the report that the hospitality and the tourism sector are totally
interlinked with each other.The products and facilities offered by the hospitality sector are linked
for the success of travel and tourism sector.Customer's preference is good service,so that is the
most important factor in successful business in this category. The main focus of the organisation
is to target middle class families so their pricing shtrategy should be made accordingly.
Integration strategy is very important element in making successful business. By including travel
and tourism packages in the hospitality industry the customers are convinced to purchase the
packages. A well developed plan for the development of organisation to create a successful
business is shown in the report.
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