TUI UK: Hospitality Provision and Integration in Travel & Tourism

This report delves into the interrelationship between the hospitality and travel & tourism industries, emphasizing their symbiotic nature and mutual reliance. It uses TUI UK as a case study, analyzing the implications of both vertical and horizontal integration strategies within the hospitality sector. The report examines how integration impacts resource sharing, customer acquisition, and overall business development, including cost and technology integration, as well as challenges like lack of knowledge, globalization, and quality control. Additionally, it presents a rationale for a hypothetical food and beverage project, considering market opportunities and operational requirements, and discusses how integration strategies can be applied to enhance competitiveness and customer satisfaction within the industry. The report concludes with a discussion of the impact of integration on various aspects of the business and provides recommendations for future growth and sustainability.

Hospitality Provision
in the
Travel and Tourism Sector

Table of Contents
Introduction.................................................................................................................................................3
1.1 Discuss interrelationship among hospitality and travel & tourism business.................................3
2.1 Examination of repercussion of integration within hospitality business............................................4
2.2 Discussion on ways in which integration has impacted within hospitality organization....................6
3.1 Development of rationale for specified project along with justification for target market.................8
3.2 Plan for hospitality business that includes operational needs of business organizational structure....9
Conclusion.................................................................................................................................................10
References.................................................................................................................................................11

Introduction
Hospitality and tourism is one of the booming scenarios. Hospitality sector comprises of
accommodations and hotels. Whereas tourism involves around airlines, travel agencies, cruise,
etc. National as well as local economies are reliant on this sector (Alonso and O’Neill, 2010).
Therefore, it is necessary for organization to take into consideration relationship with customers
along with profit making. This report deals with TUI UK whose parent company is TUI Group
that assists to maintain quality of packages for gaining competitive edge. It is one of the leading
organizations which serves worldwide and is headquartered in Luton, England. It listed on
London and Frankfurt Stock Exchange which are constituent of FTSE 100 Index. This report
comprises of interrelationship among travel and tourism along with hospitality business.
Implications of integration within hospitality industry are analyzed and their impact.
Furthermore, rationale is justified and plan with respect to operational needs of business are
developed.
1.1 Discuss interrelationship among hospitality and travel & tourism business.
Tourism plays crucial role within Hospitality industry which comes under service sector.
This sector comprises of wide categories of field like transportation, event planning, theme parks
and many others (Mayer, Ryley & Gillingwater, 2012). Along with these accommodations
comprises of facilities like night parties, pub, bars etc. that are rendered by hospitality industry
for retaining their customers. Organization possesses various forms of values and culture. They
render valuable prices which aids them to attract potential customers. Both hotel and travel
industries are interconnected with one other. For an instance group wants go for a tour, they will
contact with tour & travel organization of UK which will provide them with best travelling
packages as well as all essential facilities.
TUI Group comprises of TUI Travel Plc which was formed on September 3, 2007which is
headquartered in West Sussex, UK. TUI Group comprises of around 1800 travel agencies along
with approximately 3000 hotels and they are present around the world. Management have
designed their time table as per customers through which they are able to render high quality of
services. Travel & tourism and hospitality business both sectors go hand in hand with one
another; Services such as food, accommodation, recreation, transportation are provided by
hospitality sector. On the other hand tourism facility comprises of offering customers with option

to travel to different locations (Ball, Horner and Nield, 2009). Travel and tourism sector is
needier within hospitality industry but on the other hand it is less dependent on this sector (TT).
Each has their own set of facilities which they provide to their customers. Like travel & tourism
provides good infrastructure for people who are travelling along with appropriate catering
services. The role of flight attendants and air hostess is to brand image of their Airlines by
providing enhanced services. They have to be polite as well as helpful towards their customers.
2.1 Examination of repercussion of integration within hospitality business.
Integration assists organization to carry out work as a whole by sharing resources as well as
customers. Hospitality sector carry out integration of resources either horizontally or vertically. Their
implications have been observed within organizations who attempt to improvise their business as well as
accomplish requirements of customers. They are making use of recent technologies as well as suitable
coordination. TUI Group is merged with various hotels as well as airline organization and they customize
their architecture for combining existing resources (Baraban and Durocher, 2010). This would lead to
expansion as well as usage of existing resources in effective manner. TUI Group has been merged with
other organizations through different ways, they are illustrated below:
Vertical integration:
The process of buying supplier and other organizations within distribution chain are referred to as
vertical integration. Outcome of implication can maximize profits and may lead to decrease in cost. For
an instance: TUI Group has entire control within distribution chain in travel and tourism industry. In this
case, organization needs to provide appropriate training to people by which they can render services at
various places along with this have effectual standard of services. Brand will be attracting potential
customers therefore, it is necessary for TUI Group to ensure their reputation is maintained. This will lead
to ensure that people feel same experience in other branches also. In this case, a merger agreement comes
in within other organization in distribution chain. By this, both organizations can attain competitive edge.
Integration will enable TUI Group to distinguish their services with respect to their competitors. This will
also lead enhancement in market shares as well as profitability and quality of services.
Magic Life and TUI Group binds together to provide standard services so that they can
captivate more number of people towards their services. This will lead to enhancement in image
of brand of both organizations. At this moment of time, Magic Life will be called TUI Magic
Life after vertical integration has taken place. Apart from this, they both will be considered as a
single unit not different. They will formulate their objectives with respect to one another.

Integration cannot be attained if there is no development or usage of latest techniques within
working premises. Supply chain can be improved by this. Management of TUI Group is
responsible for monitoring and controlling coordination and activities associated with their
services (CG Davidson, McPhail and Barry, 2011). As per market research, due to vertical
integration TUI is entering within new market but there are certain barriers like development of
market strategies, expectations of customer, analysis and competition within market. By having
suitable control on functions these barriers can be handled in required manner which will lead to
successful integration.
Horizontal Integration
The process in which two organizations are combined together to form a bigger firms is
known as horizontal integration. This leads to identical services as well as products. Output of
horizontal integration is development of new organization. Like, TUI Group has combined with
First Choice Airways to form a large organization which leads them to enhance their revenue and
expand their services. The major objective of this is gain competitive edge and also increases
productivity along with profitability. Take in instance such as, TUI can integrate with Edward
House Hotel, United Kingdom for improvisation of their service and accommodation functions.
It will have affirmative impact on both organizations.
Focus of TUI Group is to expand their business globally. For this reason, this method of
integration is considered as best as it enhances capability and resources. Various results have
been gained through horizontal integration such as services have been improvised along with
their efficiency (Chen, Chen and Okumus, 2013). Through this brand name can be developed
along with their image within various countries. Through globalization revenue can be grown as
international tourism has wider scope. Apart from this, amalgamation may also conflict interest
of two organizations that are active parts in this. Every organization has their own mission and
vision; therefore it is obvious that during decision making conflicts may arise.
2.2 Discussion on ways in which integration has impacted within hospitality organization.
Integration is combination of core competencies of two organizations for attracting more
customers as well as gain competitive edge within organization. In this case, major focus is on

maximum utilization of resources; formulate spirited pricing strategies along with latest
technologies. The impact of integration on TUI Group has been elaborated below:
 Cost integration: Vertical as well as horizontal integration allows organization to spend
higher volumes for improvising their services. Investments on technology have been
expanded so that they can render effective services and also maintain quality of those
services. The prices are set mutually by organizations related with holiday packages. For
an instance: TUI Group buys Magic Life which means that they have invested a lot in
their business, it reflects that cost integration causes impact on hospitality business.
Overall its impact will be positive if investments have been made in right direction.
 Technology: This factor can cause great impact on hospitality industry. It supports
organization for rendering new technology as per requirements of market and alterations
which occur therein. Latest technology and tools will assist TUI Group to improvise their
speed with respect to their functions and services which are carried out within business
premises. Technology renders a simpler way for contacting with end users. The best part
of this integration is that it provides effective coordination among organizations; it won’t
matter where they are situated (Eltantawy, Giunipero & Fox, 2009). Thus, technological
tools effectively coordinate activities along with improvisation in speed through which
decisions are formulated. Like instead of face to face meetings, online conferences or
video calls can be made this will save lots of time and money. This will have significant
impact on innovative as well as efficiency of ideas.
 Lack of knowledge: TUI Travel in integrated vertically and horizontally. After
integration has been occurred, TUI has entered within new market segment. Thus, many
alterations will take place while formulation of market strategies and all the aspects must
be taken into consideration while doing this. It was complex for TUI Group to handle
new customers and communicate with them in effectual manner. This will assist them to
find out the potential customers who may be interested in various travelling packages.
This will assist them to have high profitability as well as productivity (Hudson, 2010).
For this management of TUI Group is providing training related communicational aspects
like the ways in which they have to interact with customers, response to their queries and
ways in which they can influence to opt to packages their organization is offering. Lack
of knowledge will allow them to purchase different packages. But when there is lack of

knowledge this will have negative impact on integration which will make it unsuccessful
and merging package will also fail.
 Globalization: TUI Group has integrated their operations with various organization but
lack of knowledge related with globalization. There are various factors such as rules &
regulations, terms & conditions and culture. Apart from this, organization may face
operational difficulties while producing their services along with this it can become
difficult for TUI Group to create global policies. It is crucial for organization to make
accommodation packages available for people who belongs to different countries, culture
and may have different taste. This will assist them to attract more number of customers
towards their services (Hudson, 2010).
 Quality: Quality of services are also impacted up to greater extent, it may be positive or
negative due to integration. Quality will depend on both the organization and way in
which they deliver their services & operations. Coordination and mutual relationship on
work lead to crucial key concepts while enhancing quality of services. This will have
strong impact on their number of customers.
With respect to vertical integration, it has been observed that it is difficult for employees to
acknowledge new strategies and how to work according to them. This will lead to complexities in
operations as well as dissatisfaction among staff as they may not be comfortable with current working
style. For an instance: human resources may not be able to recognize culture and the way in which they
will carry out their responsibilities. Thus, this will lower down the qualities of services which are being
offered by organization after carrying out integration (Mayer, Ryley & Gillingwater, 2012).
3.1 Development of rationale for specified project along with justification for target market.
Taste king is an organization which is planning to render their services within food &
beverages sector as they have observed lots of growth options in this industry. They have found
that enhancement in income as well as economy has made people to spend more on these items.
Therefore, Taste King has planned to set desired standards within this sector so that they can
accomplish tastes and preferences of their potential customers (Alonso and O’Neill, 2010).
Customers are opting for high quality services rather than amount they pay for that. Taste King
Restaurant is focusing on upper middle class people who believes in living luxury life and do not
think twice before spending money. By this management thinks that they can gain competitive
edge within market and take their business into new heights.

Taste King has opted to inaugurate their new restaurant in London as visitors come here
to spend their leisure time here. They will be providing products which will be full of high
nutrition’s, tasty and quality. For this business is making use of advertisements on social media,
websites along with ads in newspapers and pamphlets. Taste King aims at reaching more number
of customers by usage of sponsorship programs along with discount on their products
(Eltantawy, Giunipero & Fox, 2009). It is crucial to make people aware of services they are
offering so that Taste King can acquire maximum number.
Marketing Strategies: They will play essential role for establishment of position and
reputation within food industry. For acquiring high position within market Taste King is making
use of different strategies through which they can maintain inflow of customers as well as
provide them satisfaction. Apart from this, Taste King is looking forward to provide more
benefits as well as values with respect to components by which they can draw in interest of
customers and can create a strong impact on their mindset in context of services rendered to
them. Attractive and excellent products will assist them to turn their one time customer into full
time or regular customer (Ball, Horner and Nield, 2009). Furthermore, management of Taste
King is taking into consideration the different food like continental, Italian and Chinese food.
Therefore, high demands along with stable economic conditions at core will provide great
benefits to start a new venture within London.
3.2 Plan for hospitality business that includes operational needs of business organizational
structure.
Human resources are valuable assets behind development and success of organization. They are
required for managing quality of services as well as carrying out operations of business. For this
organization need recruit skilled staff who can work in required manner. The different stages with respect
to business plan are illustrated below:
Stage 1: Development
Management of Taste King will have well planned strategies for recruiting as well as allocating
of human resources within business. Satisfaction of customers is necessary for growth of organization
within food and beverage sector. Responsible staff is build up for serving customers easily and quickly.
These objectives cannot be attained without assistance of experienced and skilled employees for
delivering and development of healthy as well as hygienic food & beverages. Apart from this, efforts are

made to minimize cost of products without negotiating quality of services which are essential for attaining
competitive edge. Expectations of customers are taken into consideration by management so that services
and products are acceptable to them (Baraban and Durocher, 2010). Organization is focusing on trends
within market for promoting customer relations as well as business. Taste King is making use of social
websites as well as internet as a platform for introducing services and products, book & review
expectations of customers with respect to organization. They also aim at presentation of products and
quality along with impressive expression.
Management of Taste King identifies customer experience as well as market trends with their
services and improvisation in delivery as well as packaging of products. Taste King is making use of
paper for this purpose so that they can have eco-friendly services. Decision making of customers is
strongly influenced by presentation of products along with quality. Strategies are formulated by
organization to reach potential customers. London is taken as a market where products and services will
be delivered by Taste King. Online promotions are taken into practice for making internal brand stronger.
Brand is collecting information by means of secondary data from international as well as local market.
This will assist them to create market impression as well as brand image.
Stage 2: Design
It is the outlook of organization. Exterior and interior sides of pubs as well as restaurants will aid
to customers, this will make design more impressive. This includes ambience (appearance): Taste King
can have western classic design in their interior, culture: management must put efforts for development of
staff and provide enhanced services to customers who are out from London along with this they can enjoy
culture of UK. This will lead to attract more number of customers by making use of trenchant design,
fabrics, frames and colorful walls. With respect to functional area they are focusing on interacting with
customers and providing them with methods through which they can pay online for services they are using. To
remain sustainable within market for longer duration of time, they need to have brought new products for their
existing services by which they can maintain their position within market (CG Davidson, McPhail and
Barry, 2011).
Stage 3: Operations
Taste King ensures that they carry their operations with respect to demands of customers along with
following laws related with services they are offering. It is crucial for them to abide to the rules and regulation
of London so that they do not fall into any kind of trouble. Furthermore, they make sure that they have highly

skilled employees for this organization carry out recruitment process. Through which they hire experienced
staff that will be able to meet goals as well as objectives of Taste King (Chen, Chen and Okumus, 2013).
Conclusion
From above report, it can be concluded that, hospitality industry of United Kingdom is aids them
to improvise their GDP. Organizations are sharing customers for expanding their business. This will assist
them to render standard flexibility and quality at time while they are travelling. They also ensure that
services are offered at reasonable amounts. In case of horizontal integration two organizations are
merged. Vertical integration purchase organization which comes in between services chain. Technology,
lack of knowledge, quality and cost are factors which impact the hospitality and travel &tourism sector. A
plan has been developed for a restaurant within London. Furthermore, organizational structure and
operational needs are explained with respect to human resource structure allocation.
References
Books & Journals

Alonso, A. D. and O’Neill, M. A., 2010. Consumers’ ideal eating out experience as it refers to
restaurant style: A case study. Journal of Retail & Leisure Property, 9(4), pp.263-276.
Ball, S., Horner, S. and Nield, K., 2009. Contemporary Hospitality and Tourism Management
Issues in China and India. Routledge
Baraban, R. S. and Durocher, J. F., 2010. Successful restaurant design. John Wiley & Sons.
Campos-Soria, J.A., Marchante-Mera, A. and Ropero-García, M.A., 2011
CG Davidson, M., McPhail, R. and Barry, S., 2011. Hospitality HRM: past, present and the
future. International Journal of Contemporary Hospitality Management, 23(4), pp.498-
516.
Chen, H. J., Chen, P. J. and Okumus, F., 2013. The relationship between travel constraints and
destination image: A case study of Brunei. Tourism Management, 35, pp.198-208.
Eltantawy, R. A., Giunipero, L., & Fox, G. L. 2009.A strategic skill based model of supplier
integration and its effect on supply management performance.Industrial Marketing
Management, 38(8), 925-936.
Hudson, S., 2010. Wooing zoomers: marketing to the mature traveler. Marketing Intelligence
& Planning. 28(4).
Mayer, R., Ryley, T., &Gillingwater, D. (2012). Passenger perceptions of the green image
associated with airlines. Journal of Transport Geography, 22, 179-186.